GULF BOND, STOCK MARKETS LAG BEHIND, GIB SAYS. Gulf money markets have grown reasonably well during the past decade, but bond and stock markets remain to a large extent fragmented and lag behind, <Gulf International Bank BSC> (GIB) said. The bank's economist Henry Azzam said in a review of Gulf capital markets that investors have to relinquish traditional investment vehicles such as real estate, foreign currency bank accounts and precious metals. "Greater financial sophistication is needed coupled with more diversified capital market instruments and a change in the disclosure requirements on company accounts," he said. The GIB study reviewed capital markets under three categories -- money markets, stock and bond markets. Azzam said Gulf states had been making greater use of short-term money market instruments and banks in the region had floated various euronotes and underwriting facilities. "Nevertheless, bond and stock markets remain, to a large extent, fragmented and lagging behind," he said. Most debt in the region is still raised by syndicated loans and bank facilities and very few companies had made use of stock or bond issues. Only Kuwait has an official stock exchange, while other Gulf nations have yet to establish exchanges. But with dwindling financial surpluses in the Gulf, governments are actively pursuing ways to develop capital markets and set up domestic stock exchanges, Azzam said. He said recession stemming from sliding oil prices had "clearly had a negative impact on the development of capital markets in the region." In addition, family firms are reluctant to go public, financial awareness among investors is still lacking and investment analysis and corporate reporting standards lack depth. A sharp fall in share prices in the early 1980s prompted investors to hold on to shares hoping for an eventual recovery. Azzam said the absence of proper commercial law in some Gulf countries and authorities' apparent reluctance to adopt financial innovations had also hampered capital markets. He called for clearly defined laws governing incorporation of joint stock companies and the flotation of debt instruments. Azzam said capital market instruments should be made available to all citizens and institutions of Gulf Cooperation Council (GCC) states -- Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates (UAE). Some moves had been taken in this direction, with Bahrain allowing GCC nationals to own up to 25 pct of locally incorporated companies. Azzam said Gulf money markets had received greater depth from the introduction of treasury bill offerings in Bahrain and the expansion of securities repurchase regulations in Saudi Arabia. But he added there is "no bond market to speak of" in Saudi Arabia, Qatar, Oman or the UAE, with the last Saudi riyal denominated bond issued in 1978. While Bahrain plans an official stock exchange and trading in Saudi Arabia has picked up, establishment of formal exchanges in Qatar, Oman and the UAE does not appear imminent, Azzam said.  
ZAMBIA TO RETAIN CURRENCY AUCTION, SAYS KAUNDA. Zambia will retain its foreign-exchange auction system despite the suspension of weekly auctions since January 24, President Kenneth Kaunda said. "We have not run away from the auction. It hasn't been abolished at all," he told Reuters in an interview. He said the system would be reintroduced after current talks with the World Bank and the International Monetary Fund and, he hoped, would be backed by fresh foreign aid funds. Kaunda dismissed central bank statements the new auction system would be used to allocate foreign exchange to private bidders but not to fix the exchange rate. Kaunda said the auction system had faltered because of the government's shortage of foreign exchange to meet demand. It was suspended when the kwacha's rapid devaluation and strong fluctuations made economic planning almost impossible for the government and the private sector, he said. Weekly foreign-exchange auctions began in October 1985. The kwacha fell from 2.20 to the dollar to about 15 in 16 months. In January 1987 the government was more than two months in arrears in paying foreign currency to successful bidders, and the auction was suspended and replaced with a fixed exchange rate of nine kwacha to the dollar.  
PHILIPPINE PLANNING CHIEF URGES PESO DEVALUATION. The Philippines must devalue the peso if it wants its exports to remain competitive, Economic Planning Secretary Solita Monsod told Reuters. "The peso/dollar rate has to be undercut to make our exports more competitive," Monsod said an interview. "No question about it. I'm saying you cannot argue with success. Taiwan, South Korea, West Germany, Japan, all those miracle economies deliberately undervalued their currencies." The peso has been free-floating since June 1984. It is currently at about 20.50 to the U.S. Dollar. Finance Secretary Jaime Ongpin has said the government does not intend to devalue the peso and wants it to be flexible and able to continue to respond to market conditions. Monsod said Ongpin was looking at the exchange rate from the point of view of finance. "If the dollar rate goes higher, our debt service in terms of pesos gets higher, so the financing is very difficult," she said. "But I am looking at it in terms of the economy." She said she was not trying to oppose official policy. "I'm just saying, keep it competitive. I do not want it to become uncompetitive because then we are dead." Monsod said, "The ideal movement in the peso/dollar rate is a movement that will reflect differences in inflation (rates) of the Philippines versus the other country. It's an arithmetic thing." Official figures show Philippine inflation averaged 0.8 pct in calendar 1986. Ongpin told reporters on Saturday it was expected to touch five pct this year. He said the government and the International Monetary Fund had set the peso/dollar 1987 target rate at 20.80. The peso lost 22.2 pct in value to slump to 18.002 to the dollar when it was floated in 1984.  
SAUDI RIYAL DEPOSIT RATES EASE. Saudi riyal interbank deposit rates eased across the board in a dull market which was long in day-to-day funds, dealers said. Today's quiet market continued a lull of several days in which traders were said to be waiting on the sidelines ahead of further clues to the direction of oil prices and the Saudi economy. Dealers cited some borrowing interest in two, three, and six-month deposits but said activity focused on short dates and one-month deposits as banks tried to lend surplus funds. Spot-next was put at 5-3/4, 5-1/4 pct, down from six, 5-1/2 yesterday while one-week rates were steady at six, 5-1/2 pct. One-month deposits declined to 6-1/4, 1/8 pct from 6-1/2, 1/4 on Monday, while three months was barely changed at seven, 6-15/16 pct. The spot riyal was little changed at 3.7501/03 to the dollar after quotes of 3.7498/7501 yesterday.  
FORMER TREASURY OFFICIAL URGES CURRENCY REFORMS. Former Treasury official C. Fred Bergsten said a new exchange rate system is needed to replace the fixed and flexible exchange rate systems which he said had not worked. "I prefer a move to 'target zones' in which the major countries would determine ranges of 15-20 pct within which they would pledge to hold their exchange rates by direct intervention and, as necessary, by changes in monetary and other policies," Bergsten, now the director of the Institute for International Economics, said in a statement to a House Banking subcommittee. "The substantial correction of the exchange rate that has occurred since early 1985 is enormously welcome, and should produce a sizeable reduction in the U.S. trade deficit this year and next, but the imbalance will not fall much below 100 billion dlrs on present policies, so much more is needed," he said.  
U.K. MONEY MARKET GIVEN 85 MLN STG LATE HELP. The Bank of England said it had provided the money market with late assistance of around 85 mln stg. This brings the bank total help so far today to some 87 mln stg and compares with its latest forecast of a 250 mln stg shortage in the system today.  
NIGERIAN CURRENCY FIRMS AT LATEST AUCTION. The Nigerian naira firmed 2.6 pct against the dollar after 17 banks were disqualified from bidding at today's weekly foreign exchange auction, the central bank said. The naira finished at 3.8050 to the dollar, against 3.9050 last week. Only 38.39 mln dlrs of the 50 mln dlrs on offer was sold, with all 27 bidding banks successfully obtaining hard currency. The effective rate, including a central bank levy, for transactions in the coming week, was 3.8241 against 3.9246 last week. The failure to sell the whole allocation was due to the central bank's unprecedented disqualification of 17 banks as punishment for inadequate documentation in previous transactions. Banks are required to submit proof that their bids are based on valid commercial transactions and the central bank has complained in the past that many are failing to produce the right paperwork within the specified time.  
EGYPTIAN CENTRAL BANK DOLLAR RATE UNCHANGED. Egypt's Central Bank today set the dollar rate for commercial banks for March 6 at 1.373/87 dollars, unchanged from the previous rate.  
YEUTTER PUTS CURRENCY BURDEN ON TAIWAN, KOREA. Responsibility for the appreciation of the Taiwan dollar and the South Korean Won lies soley with those countries, said U.S. trade representative Clayton Yeutter Speaking to the Asia Society, Yeutter said that it is in those countries' own long-term interest to raise the value of their currencies against the dollar. Yeutter was responding to a question about what the U.S. could do to encourage appreciation of those currencies against the dollar in order to reduce the large U.S. trade deficits with Taiwain and Korea. "An undervalued currency will help those countries' exports in the short term, but in the long run they have to be concerned about how they are perceived in the international business community," Yeutter said. For Taiwan, Yeutter said that with its per capita trade surplus with the U.S., much larger than that of Japan's, and with huge foreign exchange reserves, it was difficult to defend the high import tarrifs and other barriers that prevail in that country. He also said that the south Korean Won should begin to move to reflect underlying economic fundamentals, "otherwise in two or three years' time, Korea will be in the same situation that prevails in Taiwan." Turning to the U.S. deficit with Japan of more than 50 billion dlrs, Yeutter said that this situation was not sustainable. "Something must give soon. If not, there is a great threat of U.S. legislative action to counteract that trend," Yeutter said.  
CANADA DLR DRIVEN BY FOREIGN BUYERS - WILSON. Finance Minister Michael Wilson said large inflows of capital into Canada, principally into the country's bond market, is a major reason behind the sharp recovery in the Canadian dollar. He said the inflow of funds, mainly from Japan, Europe and the United States, is the result of "confidence in the direction this country is going in." "That is the reason why the (Canadian) dollar today is higher than 75 cts (U.S.) compared to this time last year (when it was) a little over 69 cts," Wilson told the House of Commons daily question period. Figures released this week show foreigners purchased a record 23.1 billion dlrs of Canadian bonds in 1986, more than double the previous year, with Japan investing a record 9.5 billion dlrs in the market. Wilson was responding to opposition party questions about a possible loss of jobs from the rise in Canadian investment abroad. Canadian investment, including the buying of foreign companies, stocks and bonds, rose to 12.53 billion dlrs from 6.19 billion dlrs in 1985. The minister said the flow of funds from abroad would generate many new jobs in Canada.  
U.K. MONEY MARKET DEFICIT REVISED TO 550 MLN STG. The Bank of England said it had revised its estimate of the shortage in the money market back to its initial forecast of 550 mln stg. At midsession the central bank changed the shortfall to 500 mln and provided assistance worth 96 mln stg through bank bill purchases in bands one and two at established dealing rates.  
LIFFE FEBRUARY VOLUMES DOWN, BUT EURODOLLARS UP. Total futures and options turnover on the London International Financial Futures Exchange (LIFFE) fell slightly during February, although daily average Eurodollar volume set a new record, LIFFE said today. Total futures and options turnover last month was 822,378 contracts, down from January's 881,778, but sharply above the comparative February 1986 figure of 463,146 lots, it said. Eurodollar turnover during February was 140,417 lots, against January's 100,941 and the year ago figure of 81,648. The daily average was a record 7,020 lots, up four pct from the previous record, set in March 1985. February trading encompassed a new daily record of 66,087 contracts on the 19th of the month, exceeding the previous record of 61,398, which had been set on February 6, LIFFE said. FT-SE 100 index futures volume was sharply higher during February, with 22,109 contracts trading, against January's 15,279 and the year-ago level of 8,181. Open interest also set new records last month in Eurodollars at 29,372 contracts, in FT-SE 100 at 4,898 and in short sterling interest rate futures at 19,846 lots. Key futures volumes as detailed by LIFFE were: Feb'87   Jan'87    Feb'86 Long gilt      424,865  525,354   134,420 Eurodollar     140,417  100,941    81,648 Short sterling  94,720   87,619    67,640 T-bond          84,694   87,980   133,766 FT-SE           22,109   15,279     8,181 Currencies       2,799    2,112     7,737 Short gilt          74       85     6,516 Key options volumes as detailed by LIFFE were: Feb'87    Jan'87     Feb'86 Long gilt     44,640    54,329     ---- Eurodollar     3,580     1,720     2,844 T-bond         1,737     3,479     ---- Sterling       1,466     2,223    18,191 FT-SE          1,277       657     ---- Total options 52,700    62,408    23,238 (Long gilt, T-bond and FT-SE index options were not trading in February 1986).  
ASIAN DOLLAR ASSETS EXCEED 200 BILLION DLRS. The Asian dollar market continued to expand in December with total assets and liabilities rising to 200.60 billion U.S. Dlrs from 188.54 billion in November and 155.37 billion in December 1985, the Monetary Authority of Singapore said. It said the increase came mainly from interbank activity, with interbank lending rising to 146.61 billion dlrs in December from 134.76 billion in November and 104.93 billion in December 1985. Interbank deposits increased to 158.52 billion dlrs against 147.95 billion and 120.03 billion, respectively. Loans to non-bank customers increased in December to 38.74 billion dlrs from 38.64 billion in November and 37.44 billion in December 1985. Deposits by non-bank customers rose to 33.81 billion dlrs against 33.60 billion and 28.02 billion.  
U.K. MONEY MARKET SHORTAGE FORECAST AT 250 MLN STG. The Bank of England said it forecast a shortage of around 250 mln stg in the money market today. Among the factors affecting liquidity, it said bills maturing in official hands and the treasury bill take-up would drain around 1.02 billion stg while below target bankers' balances would take out a further 140 mln. Against this, a fall in the note circulation would add 345 mln stg and the net effect of exchequer transactions would be an inflow of some 545 mln stg, the Bank added.  
U.K. MONEY MARKET GIVEN LATE HELP WORTH 15 MLN STG. The Bank of England said it provided the market with unspecified late assistance worth 15 mln stg. It has given the market total assistance of 228 mln stg today compared with a liquidity shortage it estimated at a revised 300 mln stg.  
FED SETS 2.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS 2.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
BANK OF ZAMBIA PAYS OUT FOREIGN CURRENCY ARREARS. The Bank of Zambia has paid out foreign exchange arrears from three auctions conducted last year, a bank spokesman said. "We have now cleared three auctions and are left with only four, worth eight mln dlrs," the spokesman said without specifying the amount paid out. The bank had not paid foreign exchange to private firms since it suspended the weekly auctions on January 28. It has said the auctions were suspended because it planned to introduce a modified system after talks with the World Bank and the International Monetary Fund. President Kenneth Kaunda announced last month that the auction would be retained for allocating foreign exchange to approved private sector bidders, but would not be used to determine the kwacha's exchange rate. Last week, he said the auction had run into trouble because of a shortage of foreign exchange. The government has fixed the exchange rate at nine kwacha per dollar, effectively revaluing the kwacha by 67.7 pct.  
MIYAZAWA SAYS PARIS ACCORD HELPING STABILISE RATES. Finance Minister Kiichi Miyazawa said the Paris currency accord has contributed to the stability of exchange rates. Miyazawa told a press conference the agreement reached last month in Paris by six major industrial nations to cooperate in bringing about currency stability has prevented speculative concerns from being active in money centres. The decision in Paris is being understood by the market, he said. The yen-dollar exchange rate has been moving in a narrow range since finance ministers of Britain, Canada, France, Japan, the U.S. And West Germany reached the accord.  
AUSTRALIAN RESERVE BANK IN BUYING INTERVENTION. The Reserve Bank said at 1230 local time it was offering to buy short-dated government securities in the short-term money market. The bank's action followed its purchase of short-dated government stock and six-day repurchase agreements earlier in the session. Money market traders said the move was aimed at easing cash market interest rates which had risen on demand for funds to meet PAYE tax and treasury note settlement commitments.  
CHINA ALLOWS NATIONWIDE FOREIGN EXCHANGE SAVING. People throughout China can now open foreign exchange accounts at the Bank of China, the official Shenzhen Economic Zone Daily said. Previously only residents of Guangdong and Fujian provinces could do this. The paper also said the minimum for opening a fixed deposit account had been cut to 50 yuan equivalent, from 150 yuan. The minimum for a current account is 20 yuan equivalent. The paper said depositors could now withdraw all or part of their account, subject to a branch's reserves, instead of only a fixed amount as previously. The paper said deposits may now be opened in French francs as well as the already available U.S. Dollar, Hong Kong dollar, sterling, yen and marks. Bank of China branches in Hainan island also accept deposits in Singapore dollars, and those in Wenzhou, Zhejiang province, accept deposits in Dutch guilders, the paper said. It gave no further details.  
HUNGARY TO DEVALUE FORINT AGAINST WESTERN UNITS. Hungary is to devalue the forint by an average of eight pct against Western currencies, the official news agency MTI said. MTI did not say when the devaluation would become effective, but it expected new rates to be announced later today. Hungary devalued the forint by a similar amount last September 23. Western bankers say the forint is more realistically valued than currencies of Hungary's COMECON allies.  
U.K. MONEY MARKET SHORTAGE FORECAST AT 300 MLN STG. The Bank of England said it forecast a liquidity shortage of around 300 mln stg in the market today. Among the main factors, the Bank said bills maturing in official hands and the treasury bill take-up would drain 483 mln stg from the system while below target bankers' balances and a rise in the note circulation would take out 50 mln and 100 mln stg respectively. Partially offsetting these, exchequer transactions would add around 355 mln stg, the Bank added.  
BELGIAN CENTRAL BANK BUYS CURRENCY TO REPAY DEBT. The Belgian National Bank bought foreign currencies against francs on the open market in the week ended March 9, a Bank spokesman said. In line with central bank policy he declined to give any details of the amount bought. The foreign currency purchased was used by the Treasury to repay foreign debt and did not affect the Bank's foreign exchange reserves. They slipped 394 mln francs to 37.33 billion, mostly due to sales of dollars for Special Drawing Rights, the spokesman said.  
GERMAN CALL MONEY EASES AFTER LIQUIDITY INJECTION. Call money eased to 3.75/80 pct from 3.80/85 yesterday following a net injection of 6.7 billion marks at a rate of 3.80 pct in fresh funds from this week's securities repurchase agreement, dealers said. But rates were expected to rise toward the end of the week. A major tax payment period by banks on behalf of customers, payments for the federal railways loan stock and repayments of mark liabilities incurred by foreign central banks with the Bundesbank in the framework of the European Monetary System (EMS) are likely to significantly burden the system. Banks built up minimum reserves today, ahead of the expected outflow. The Bundesbank credited banks with a gross 15.2 billion marks, but some 8.5 billion left the system at the same time as an earlier securities repurchase pact matured. Dealers estimated the EMS related outflow as high as six billion marks. The Bundesbank declined to comment, but a spokesman said yesterday although the funds now due may be allowed to roll over, the possibility that other central banks may choose to redeem them meant a net infusion was needed. Dealers forecast tax payments of 25 and 30 billion marks, but much of it is expected to burden the system only next week. Banks' minimum reserve holdings at the Bundesbank totalled 53.6 billion marks on Monday, averaging 54.0 billion over the first nine days of March. Dealers said although the figure was well above an expected requirement of around 51 billion marks, the expected outflow of funds was so large that banks might find it difficult to meet the requirement toward the end of March. No securities repurchase agreement is expiring next week, but dealers said the Bundesbank could offer fresh liquidity if conditions significantly tighten. "The Bundesbank wants to keep rates around 3.80 pct," one dealer said.  
HUNGARY TO DEVALUE FORINT AGAINST WESTERN UNITS. Hungary is to devalue the forint by an average of eight pct against Western currencies, the official news agency MTI said. MTI did not say when the devaluation would become effective, but it expected new rates to be announced later today. Hungary devalued the forint by a similar amount last September 23. Western bankers say the forint is more realistically valued than currencies of Hungary's COMECON allies.  
BANK OF ENGLAND DOES NOT INTERVENE IN MONEY MARKET. The Bank of England said it did not operate in the money market during the morning. Initially, the bank forecast a liqudity shortage of some 300 mln stg for the market today. Overnight interbank sterling traded at the 11-1/4 1/8 pct level for most of the morning while period rates have eased on the strength of sterling, dealers said. At 1200 gmt, sterling's trade-weighted index was up 0.6 at 72.7.  
POUND AND CANADIAN DOLLAR CAPTURING ATTENTION. Interest in the currency futures market has shifted to the soaring British pound and the potentially explosive Canadian dollar, and away from the dull Continental and Japanese currencies, analysts said. The June pound, which added 6.3 cents over the past week-and-a-half to reach a new contract high of 1.5930 to the dollar on Monday, has spawned a new-found speculative boom. "Brokers have to push their clients somewhere...and technically, the pound is in the best shape," PaineWebber analyst Jason Gillard said. "We've tried to take a bullish approach to the pound, and we're going to stay with that, there's no reason to change," Smith Barney analyst Craig Sloane said. Many traders took on long pound/short West German mark futures positions, although some of those cross-trades were liquidated yesterday, Sloane said. The fundamental keys to the pound's rise have been relatively high U.K. interest rates and a vague optimism surrounding the British economy, analysts said. "Money seems to be chasing yields," William Byers, of Bear Stearns, said of the 10-1/2 pct U.K. base lending rate. Many analysts are skeptical about further gains in the pound, on the inference that the Bank of England will seek to relieve upward pressure on the currency by pushing down interest rates after the nation's budget is released March 17. The budget itself could have an impact, depending on how well it is received, but analysts say relative interest rates and oil income remain the main influences on the currency. However, the market may be able to absorb lower U.K. interest rates, as it has done when other countries have cut their discount rates, and extend the pound's rally, Sloane said. The Canadian dollar has not been rising like the pound, but Sloane and other analysts cautiously predicted a big move soon. The sideways price pattern in the June contract, with smaller and smaller price ranges, has formed a "bull flag" on price charts, technically-oriented analysts said. "It makes for an explosive type of situation that often leads to a breakout," in this case to the upside, Sloane said. Byers agreed there was potential for the June Canadian dollar to rally above the 77.00 cent level from the most recent close at 74.80 cents to the U.S. dollar. "At this stage of the game I'd call the market long-term positive, but for the technical burden of proof you need a close above (the previous contract high of) 75.25," Byers said. As to the traditionally more active currencies, stability was the catchword and reluctance the watchword among analysts. Sloane said it was important that June Swiss francs and June German marks held above support at 0.6400 and 0.5400, respectively, closing at 0.6438 and 0.5430. Yesterday's rebound showed the market was still very respectful of the Paris accord, and the threat of central bank intervention by the G-5 nations plus Canada. "We may still probe to see what the parameters are," Byers said, "but people are very reluctant because they don't know where the central banks will be (to intervene)." Gillard said the mark could drop to a previous price consolidation area around 0.5250 based on the profoundly sluggish West German economy, but that he would be a buyer at that level.  
SWISS SIGHT DEPOSITS FALL 2.88 BILLION FRANCS. Sight deposits of commercial banks at the Swiss National Bank fell 2.88 billion Swiss francs in the first 10 days of March to 7.65 billion, the National Bank said. Foreign exchange reserves rose 3.30 billion francs to 33.94 billion. Sight deposits are a major indicator of money market liquidity in Switzerland. The National Bank said banks paid back 5.5 billion francs of central bank credit taken out at the end of February for the end-month liquidity requirement. This drain was offset in part by new currency swaps, which had the effect of increasing the National Bank's foreign exchange holdings. Bank notes in circulation fell 309.1 mln francs to 24.49 billion, and other deposits on call -- basically government funds -- rose 1.06 billion to 2.10 billion.  
U.K. MONEY MARKET GIVEN 106 MLN STG ASSISTANCE. The Bank of England said it gave the money market assistance worth 106 mln stg this afternoon, buying bank bills at the rates established on Monday. The Bank bought 11 mln stg of band one bills at 10-3/8 pct and 95 mln stg of band two paper at 10-5/16 pct. This is the first time that it has intervened today. The Bank has revised its estimate of the liquidity shortage in the market down to 250 mln stg from 300 mln initially.  
U.K. MONEY MARKET GIVEN LATE HELP OF 240 MLN STG. The Bank of England said it provided the money market with unspecified late assistance of around 240 mln stg. This brings its total assistance on the day to 346 mln stg compared with a liquidity shortfall it estimated at a revised 250 mln stg. Overnight interbank sterling was being offered at eight pct shortly after the Bank's announcement.  
DEALERS WARY OVER STERLING INTERVENTION RUMOUR. Foreign exchange market rumours that the the Bank of England has been selling sterling to halt its rise prompted a wary response from dealers who said they saw no obvious confirmation, market sources said. Bank of England officials were not immediately available for comment. Earlier this week, the Bank sanctioned a cut in bank interest rates in a surprise move, which aimed at limiting sterling's rise ahead of the March 17 budget. But today the pound has strengthened to 72.7 on its trade-weighted index from 72.1 last night, though the U.K. Currency is below its day's high against the dollar.  
FED EXPECTED TO ADD RESERVES. The Federal Reserve is expected to intervene in the government securities market to add temporary reserves via customer or system repurchase agreements, economists said. Most economists said the Fed will inject reserves indirectly via customer repurchases, but they added that the Fed might opt for a direct injection of reserves via overnight system repurchases. Federal funds opened at 6-3/8 pct and eased to 6-5/16 pct in early trading. Funds averaged 6.29 pct yesterday.  
FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
FED ADDS RESERVES VIA CUSTOMER REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange two billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-5/16 pct when the Fed began its temporary and indirect supply of reserves to the banking system.  
TREASURY SECRETARY BAKER DECLINES COMMENT ON G-6. U.S. Treasury Secretary James Baker declined comment on the February 22 Paris accord between the six major industrial nations under which they agreed to foster exchange rate stability. Asked by reporters after a speech before the National Fitness Foundation banquet what, if any, currency intervention levels had been set in Paris, Baker replied: "We never talk about intervention." Baker also declined to comment on his views about the foreign exchange markets' reaction to the accord.  
BANK OF ENGLAND OFFERS EARLY HELP IN MONEY MARKET. The Bank of England said it had invited the discount houses to make an early round of bill offers to help offset a large liquidity shortage in the money market. It estimated the shortage at around 1.55 billion stg, one adverse factor being the unwinding of a sale and repurchase agreement, with the market having to buy back bills worth 542 mln stg from the Bank. Bills maturing in official hands and the treasury bill take-up would drain 957 mln stg wile exchequer transactions and a note circulation rise would take out 15 mln and 25 mln respectively. Above target bankers' balances would add 10 mln.  
TREASURY SECRETARY BAKER DECLINES COMMENT ON G-6. U.S. Treasury Secretary James Baker declined comment on the February 22 Paris accord between the six major industrial nations under which they agreed to foster exchange rate stability. Asked by reporters after a speech before the National Fitness Foundation banquet what, if any, currency intervention levels had been set in Paris, Baker replied: "We never talk about intervention." Baker also declined to comment on his views about the foreign exchange markets' reaction to the accord.  
BANKERS OPPOSE STRICT TAIWAN CURRENCY CONTROLS. Taiwan imposed currency controls today in what bankers called a desperate move to prevent speculation as the Taiwan dollar appreciated against the U.S. currency. The strict controls will require proof that large remittances to Taiwan are connected to commercial transactions rather than currency speculation. Bankers attacked the controls as ineffective, saying they were a panic reaction to pressure from Washington for faster appreciation of the Taiwan currency against the U.S. dollar, which would slow exports to the United States. Remittances exceeding one mln dlrs earned through exports, shipping, insurance or bank lending will now need government approval, along with remittances of more than 10,000 dlrs from any other source.  
FED SAYS IT SETS TWO BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.  FED SAYS IT SETS TWO BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS  
BANK OF ENGLAND OFFERS EARLY HELP TO MONEY MARKET. The Bank of England said it invited an early round of bill offers to help ease tight conditions in the money market. The bank estimated today's liquidity shortage at about 1.10 billion stg. Bills maturing in official hands and the treasury bill take-up would drain 1.21 billion stg from the system while a rise in the note circulation and below target bankers' balances would take out 265 mln and 180 mln respectively, the bank said. Against this, exchequer transactions would add a net 535 mln stg.  
MIYAZAWA SAYS EXCHANGE RATES WILL STAY STABLE. Finance Minister Kiichi Miyazawa told a press conference he thinks exchange rates will remain stable due to the currency accord reached in Paris last month by six major industrialised nations but he did not say for how long. The dollar has hovered around 153 yen since the six agreed to cooperate to bring about currency stability. Asked to comment on remarks by some U.S. Officials calling for a further decline of the dollar, Miyazawa said only the U.S. President and the U.S. Treasury Secretary can make official statements about exchange rates.  
UK MONEY MARKET DEFICIT REVISED TO ONE BILLION STG. The Bank of England said it has revised its estimate of today's shortfall to one billion stg, before taking account of 646 mln stg morning assistance.  
ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY. The European Monetary System marks its eighth anniversary still vulnerable to turmoil in world money markets despite creating an island of currency rate stability in Europe, economists say. But many economists say the system, which holds eight European Community currencies within narrow fluctuation bands, remains in its infancy. Its new currency, the European Currency Unit (Ecu), has been a runaway success with investors and borrowers alike seeking an alternative to the volatile dollar. And on Wednesday, the long term vision of the Ecu as Europe's common currency took a step nearer to becoming reality when Belgium minted the world's first Ecu coin. But economists say members such as West Germany have so far blocked a second stage of development envisaged by the system's founding fathers, ex-West German Chancellor Helmut Schmidt and former French President Valery Giscard d'Estaing. Under this phase, originally due to have started two years after the EMS was set up, decision-making was to have been transferred from national governments and central banks to an autonomous European Monetary Fund. But members have jealously guarded their sovereignty in economic and monetary matters. "The basic problem of the EMS is that governments are not prepared to make the quantum leap to a situation where certain decisions are taken in common," said one economist who has closely watched the system's development. The result is that the EC is often divided over policy on third currencies, accentuating what the economists say is the system's greatest weakness, its vulnerability to a weak dollar. Over the past 18 months, as the U.S. Dollar plunged and investors moved into strong currencies, the resulting sharp rise of the West German mark severely strained the system. MORE As the mark soared against the dollar, it also rose against EMS currencies less favoured by international investors. And as West Germany last year refused to give in pressure from several EC partners and the United States to cut interest rates to slow the mark's rise, the EMS had to be realigned twice to ease financial and trade strains within the community. Two months ago the mark and the Dutch guilder were revalued by three pct and the Belgian and Luxembourg francs by two pct against other currencies in the system -- the French franc, Italian lira, the Irish punt and Danish crown. Another frustration has been Britain's failure to lend the EMS political support by keeping the pound, still a major world currency, outside the system. No change in the British government's attitude is expected before the country's next general elections, due by mid-1988. Meanwhile, the system's last realignment, the 11th since it was set up, prompted European finance ministers to ask the EC's highly-secretive Monetary Committee and Committee of Central Bank Governors to come up with suggestions for reinforcing it. Their ideas are due to be unveiled when finance ministers hold an informal meeting in Belgium early next month. But economists said the proposals are unlikely to involve more than tinkering with technical details. They are sceptical about the chances for any fundamental change. "Technical measures won't be enough to protect the EMS against external factors such as dollar weakness. For that we must take the step forward to the institutional level," said Leo de Corel of Kredietbank's economic research department. Economists say the system's fortunes now will depend largely on the success of an agreement last month among major industrial nations to stabilise exchange rates. If the dollar resumes its slide the EMS could be in for more turbulence, they predict.  
FRANCE REPAYS SOME OF CURRENCY INTERVENTION DEBT. France today repaid 21.95 billion francs of short-term currency intervention debt to the European Monetary Cooperation Fund, EMCF, the Finance Ministry said. It said the debt was part of a 33.90 billion franc liability incurred through the activation of EMCF swap facilities to defend the franc before the January 11 European Monetary System realignment. The realignment, following several weeks of speculative pressure, produced a three pct revaluation of the West German mark and the Dutch guilder against the French franc and a two pct revaluation of the Belgian franc.  
AFTER G-6, ROUND ONE GOES TO CENTRAL BANKS. Central banks have easily beaten back the foreign exchange market's first test of the industrialized nations' recent pact to stabilize currencies, analysts said. In active trading this week, the market pushed the dollar, sterling, the Canadian dollar and Australian dollar higher. But operators got their fingers burned as one by one the central banks signalled their displeasure. "So far G-6 has been a roaring success,"said James O'Neill, financial markets economist at Marine Midland Bank NA. "The central banks are sending strong signals that they won't tolerate any kind of momentum building behind currencies," added a senior corporate trader at one U.K. bank. On February 22, the finance ministers and central bank governors of the U.S., Japan, West Germany, France and the U.K. -- the Group of Five -- plus Canada, signed an accord under which they agreed to cooperate closely to foster stability of exchange rates around prevailing levels. The agreement was viewed by many in the market as an attempt to put a floor under the dollar after its sizeable two-year decline against major world currencies. And initially, traders indicated their respect for the accord by refraining from pushing the dollar lower. But by Wednesday, the dollar climbed to more than 1.87 marks, about five pfennigs above its levels the Friday before the G-6 accord. The move was aided by indications that the U.S. economy picked up steam in February at the same time as the West German economy was regressing. But dealers said the Federal Reserve Bank of New York gave traders a sharp reminder that the G-6 pact had encompassed the idea of limiting inordinate dollar gains as well as declines. Dealers differed as to whether the U.S. central bank actually intervened to sell dollars above 1.87 marks, or simply telephoned dealers to ask for quotes and enquire about trading conditions. But the dollar quickly backed off. It hovered today around 1.85 marks. "The market was surprised that the Fed showed its face so soon," said Marine Midland NA's O'Neill. Also on Wednesday, London dealers said the Bank of England intervened in the open market to sell sterling as the U.K. currency rose to 1.60 dlrs compared with 1.5355 dlrs before the G-6 pact. Sterling, along with the other high-yield currencies like the Australian dollar and Canadian dollar, was in favor after traders surmised that the the chance of intervention pursuant to the Paris currency accord left limited room for profit plays on dollar/mark and dollar/yen. The pound also was boosted by suggestions of an improving U.K. economy, anticipation of a popular British budget on March 17 and public opinion polls showing good chances for the incumbent Conservative party in any general election. "There was a real run on sterling," said Anne Mills of Shearson Lehman Brothers Inc. Sterling traded today around 1.5750 dlrs, down from 1.5870 dlrs last night. It slid to 2.917 marks from 2.950 yesterday and from a peak of about 2.98 recently. "There's been some heavy profit-taking on sterling/mark ahead of next Tuesday's U.K. budget," said James McGroarty of Discount Corp. As speculators detected the presence of the U.S. and British central banks, they acclerated their shift into Canadian and Australian dollars. But here too they were stymied. The Bank of Canada acted to slow its currency's rise. The Canadian dollar traded at 1.3218/23 per U.S. dollar today, down from 1.3185/90 yesterday. And the Australian Reserve Bank, using the Fed as agent, sold Australian dollars in the U.S. yesterday, dealers said. The Australian dollar fell to a low of 67.45/55 U.S. cents today from a high of 69.02 Thursday. Analysts said the central banks' moves to stifle sudden upward movement, leave the market uncertain about its next step. Today, the focus shifted to the yen which has held to a very tight range against the dollar for several months. The dollar fell to 152.35/40 yen from 153.35/40 last night. Analysts said the yen also gained as traders unwound long sterling/short mark positions established lately. "Because of the change in perceptions about the health of the German economy, the funds from those unwinding operations are ending up in yen," a dealer at one U.K. bank said. Recent West German data have shown falling industry orders, lower industrial output and slowing employment gains. Moreover, the yen is benefitting as Japanese entities who have invested heavily overseas, for example in Australian financial instruments, repatriate their profits ahead of the end of the Japanese fiscal year on March 31. Noting that the dollar/yen rate is in a sense the most controversial one because of the large U.S. trade deficit with Japan, analysts said the stage could be set for another test of the dollar's downward scope against the Japanese currency. In its latest review of the foreign exchange market through the end of January, the Federal Reserve revealed that it intervened to protect the dollar against the yen on January 28. On that day, the dollar fell as low as 150.40 yen. "Sure, the Fed bought dollars near the 150 yen level in January. But the market has to bear in mind that time marches on and the situation changes," said McGroarty of Discount.  
LEADING INDUSTRIAL NATIONS TO MEET IN APRIL. Leading industrial nations will meet again next month to review their accord on currency stability, but U.S. Officials said financial markets are convinced for now the countries will live up to commitments to speed up economic growth. The narrow currency movements of recent weeks strongly suggests the six leading industrial countries have tamed the normally unruly financial markets and next month's talks seem likely to build on that stability. A Reagan administration official said the Paris agreement last month was the main reason markets were calm. But he said in an interview that financial markets also understood, "That all six countries concluded that the measures to be taken over a period of time in the future should foster stability of exchange rates around current levels. That is in fact what has happened since Paris." Monetary analysts said stability has been helped in part by the decision of industrial nations to bury the hatchet and cease to quarrel over short-term policy objectives. Instead they have focused on medium-term policy goals, but left room to adjust their agreements with periodic meetings. The official refused to comment, however, on whether the agreement included a secret pact to consider further coordinated interest rate cuts -- a measure industrial nations have taken jointly several times in the past year. On February 22, the United States, Japan, West Germany, France, Britain and Canada agreed that major currencies were within ranges broadly reflecting underlying economic conditions, given commitments by Washington to cut its budget deficit and by Toyko and Bonn to boost economic growth. The shake-up would strengthen the U.S. Position in future international talks. "I think these changes will strengthen the President's hand politically and the stronger he is politically the better off we are with the Congress and the better off we are in international fora," said the official, an Administration economic policymaker. "So it would be beneficial to the continued conduct of our initiatives." But the official also said the Administration would resist calls for a tax increase to cut the budget deficit -- a target Europeans say is crucial to help curb economic instability. Last week, dealers said the Federal Reserve intervened to stop the dollar rising against the mark, which had breached 1.86 to the dollar. British authorities are also understood to have intervened to curb sterling's strength. International monetary sources say finance ministers and central bankers, who will review market performance and their own economic prospects, will reassemble again in Washington just before the April 9 policymaking meeting of the International Monetary Fund. The sources said Italy, which refused to join the Paris pact, was invited back by Treasury Secretary James Baker. Since Paris, there are signs West German growth is slowing, while U.S. Officials said they were giving Japan until April to show that an economic stimulus package was in the offing. Signs of concern about German prospects emerged recently when Bundesbank (central bank) president Karl Otto Poehl told bankers he would consider cutting West German interest rates if the Fed was ready to follow suit. A Reagan Administration official said this would show there had been some change in approach on the part of the central bank in Germany. But he declined to comment on the prospects for action by the Fed and the Bundesbank. "If there is such a provision it is private and if I talked about it, it would no longer be private," said the official, who asked not to be identified. Public comments by Fed officials suggest the central bank is keeping credit conditions broadly unchanged, but if the major economies continue to show sluggish growth and the U.S. Trade deficit remains stubbornly high, further coordinated action could be on the April agenda. REUTER...  
TAIWAN SAYS U.S. WANTS TAIWAN DOLLAR TO APPRECIATE. The United States wants Taiwan's currency to appreciate faster to reduce Taiwan's trade surplus with the U.S., A senior trade official said. Board of Foreign Trade director Vincent Siew told reporters on Saturday U.S. Officials told him in Washington last week that unless Taiwan allowed its dollar to rise faster it would face retaliation. Siew returned from Washington on Friday after the U.S responded to Taiwan's request to increase its textile export quotas by promising further talks in May. Taiwan's surplus with the U.S. Hit a record 13.6 billion U.S. Dlrs in 1986. Washington signed a three-year accord with Taipei last year limiting textile export growth to 0.5 pct a year. Siew said the Taiwan dollar had risen by about 15 pct against the U.S. Dollar since September 1985. It surged last week amid indications Washington was seeking a major rise in its value. It rose four cents against the U.S. Dollar on Saturday to close at 34.59. Western trade sources told Reuters Taiwan and the U.S. Have been holding talks on the currency issue but added it is not clear how far Washington wants to see the Taiwan dollar rise.  
ZAMBIA, IMF TALKS HIT PROBLEMS OVER FOOD SUBSIDIES. Zambia's talks with the World Bank and International Monetary Fund (IMF) on a financial rescue package have run into difficulties on the issue of food subsidies, an official newspaper said. The Times of Zambia, which is run by the ruling United National Independence Party (UNIP), quoted official sources as saying the IMF and World Bank had refused to continue financing food subsidies and were pressing the government to explain how it proposes to pay for them. President Kenneth Kaunda tried to abolish maize subsidies last December, in line with IMF recommendations, but the move caused maize meal prices to double overnight and led to riots in which 15 people were killed. The subsidies were immediately restored as part of moves to quell the disturbances, but they are estimated to cost the government about 500 mln kwacha per year. The Times of Zambia said another major issue in the government's current talks with the IMF and World Bank was the remodelling of Zambia's foreign exchange auction. The central bank's weekly auction of foreign exchange to the private sector has been suspended since the end of January, pending modifications to slow down the rate of devaluation and dampen fluctuations in the exchange rate. The kwacha slid to around 15 per dollar under the auction system, losing 85 pct of its value in 16 months. However, since the end of January it has been revalued to a fixed rate of nine per dollar. Banking sources said Zambia was persuaded by the World Bank and IMF to lift its proposed ceiling of 12.50 kwacha per dollar on the currency's devaluation once the auctions restart. According to the Times of Zambia, the IMF team, led by assistant director for Africa Paul Acquah, is due to conclude its talks with the government on schedule on March 23. The IMF mission arrived in Lusaka on February 26 and its talks with the government have taken longer than expected.  
GERMAN BANKING AUTHORITIES WEIGH SWAP REGULATIONS. German banking authorities are weighing rules for banks' off-balance sheet activities in an attempt to cope with the growing volume of sophisticated capital market instruments, banking sources said. Interest rate and currency swaps and currency options are under closest scrutiny, and if revisions are made they may resemble regulation jointly proposed by the U.S. And U.K. To Japan. Juergen Becker, director of the Bundesbank's division of banking law and credit supervision, said the U.S.-British proposals were interesting, but declined to elaborate. But banking sources said West Germany was more likely to produce its own conclusions than to adopt foreign proposals. "There is no formal plan yet, but talks are in the latter stages," one representative of the German Banking Association in Cologne said. Bankers expect rule changes this year. All alterations must be approved by the Bundesbank, West Germany's four major banking associations and the Federal Banking Supervisory Office. Talks have been slowed by the fact that fundamental changes would require a revision of Germany's credit law, which has been in effect since 1934. Authorities favour reinterpreting the credit law to fit present circumstances in order to avoid the long parliamentary political process of changing it, banking sources said. Since the beginning of 1984 the banking law has limited banks' lending to 18 times shareholders' equity plus reserves, on a consolidated basis. But lending ratios do not extend to several newer instruments such as spot and forward currency contracts, currency and interest swaps, commercial paper programs, currency options, interest rate futures in foreign currencies and various innovative types of interest rate hedges. The sources said the main value of the U.S.-U.K. Proposals lay in differentiating between different types of risk factor, and, for instance, in placing greater weight on currency swaps than interest swaps. But even if German banking authorities agree with some of the assessments of swaps, they disagree on how to find balance sheet equivalents for the risk. U.S.-British proposals include a complicated series of formulae for assessing the stream of payments involved in swaps, whose ultimate risk is borne by the financial intermediary, especially when counterparties remain anonymous. This is the so-called market-to-market value. But German authorities are likely to consider this much too complex and to base their evaluation instead on a schedule of lending ratings assigned according to the creditworthiness of the borrowers involved, the sources said. The weightings, also likely if lending ratios are extended to include banks' securities portfolios, are zero for public authorities, 20 pct for domestic banks, 50 pct for foreign banks and 100 pct for other foreign and non-bank borrowers. A further complication is that the more flexible definitions of equity allowed in the U.S. And the U.K. May put German banks at a competitive disadvantage, the sources said. Stricter definitions here also mean the use of a version of the U.S.-U.K. Proposals could far exceed the intent of the U.S. And British authorities, the sources said. One specialist for Dresdner Bank AG said a long-dated foreign exchange forward transaction could, for instance, be brought under the same rule as a cross-currency swap, despite the fact that the risk may be entirely different. How new regulations will affect foreign banks here was uncertain. Many have converted to full subsidiary status and applied for a full banking licence over the last two years in order to lead-manage mark eurobonds. But as their equity capital is fairly small, tight lending ratios will severely hamper foreign banks' freedom of movement, particularly in the growing business of currency swaps, if they are required to include more transactions in the balance sheet, the sources added.  
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE. The Bank of England said it invited an early round of bill offers from discount houses after forecasting a shortage in the system of some 1.05 billion stg. Among the main factors affecting liquidity, bills maturing in official hands and treasury bill take-up will drain some 1.07 billion stg while exchequer transactions will take out around 335 mln stg and bankers' balances below target five mln stg. Partly offseting these outflows, a fall in note circulation will add some 355 mln stg to the system today.  
U.K. MONEY MARKET DEFICIT FORECAST REVISED UPWARDS. The Bank of England said it had revised its estimate of the shortage in the money market today up to 1.15 billion stg before taking account of its early operations. Earlier, the bank forecast the deficit at 1.05 billion stg and gave 90 mln stg assistance at an early round of bill offers.  
U.K. MONEY MARKET GIVEN 550 MLN STG LATE HELP. The Bank of England said it provided the money market with late assistance of around 550 mln stg. This takes the Bank's total help today to some 1.12 billion stg and compares with its estimated deficit of around 1.10 billion.  
ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY. The European Monetary System marks its eighth anniversary still vulnerable to turmoil in world money markets despite creating an island of currency rate stability in Europe, economists say. But many economists say the system, which holds eight European Community currencies within narrow fluctuation bands, remains in its infancy. Its new currency, the European Currency Unit (Ecu), has been a runaway success with investors and borrowers alike seeking an alternative to the volatile dollar. And on Wednesday, the long term vision of the Ecu as Europe's common currency took a step nearer to becoming reality when Belgium minted the world's first Ecu coin. But economists say members such as West Germany have so far blocked a second stage of development envisaged by the system's founding fathers, ex-West German Chancellor Helmut Schmidt and former French President Valery Giscard d'Estaing. Under this phase, originally due to have started two years after the EMS was set up, decision-making was to have been transferred from national governments and central banks to an autonomous European Monetary Fund. But members have jealously guarded their sovereignty in economic and monetary matters. "The basic problem of the EMS is that governments are not prepared to make the quantum leap to a situation where certain decisions are taken in common," said one economist who has closely watched the system's development. The result is that the EC is often divided over policy on third currencies, accentuating what the economists say is the system's greatest weakness, its vulnerability to a weak dollar. Over the past 18 months, as the U.S. Dollar plunged and investors moved into strong currencies, the resulting sharp rise of the West German mark severely strained the system. Another frustration has been Britain's failure to lend the EMS political support by keeping the pound, still a major world currency, outside the system. No change in the British government's attitude is expected before the country's next general elections, due by mid-1988. Meanwhile, the system's last realignment, the 11th since it was set up, prompted European finance ministers to ask the EC's highly-secretive Monetary Committee and Committee of Central Bank Governors to come up with suggestions for reinforcing it. Their ideas are due to be unveiled when finance ministers hold an informal meeting in Belgium early next month. But economists said the proposals are unlikely to involve more than tinkering with technical details. They are sceptical about the chances for any fundamental change. "Technical measures won't be enough to protect the EMS against external factors such as dollar weakness. For that we must take the step forward to the institutional level," said Leo de Corel of Kredietbank's economic research department. Economists say the system's fortunes now will depend largely on the success of an agreement last month among major industrial nations to stabilise exchange rates. If the dollar resumes its slide the EMS could be in for more turbulence, they predict.  
SPAIN TO RELAX EXCHANGE CONTROLS. The Bank of Spain is relaxing exchange controls to help put Spanish banks on an equal footing with European Community competitors by the 1993 deadline for the ending of restrictions, a central bank spokesman said. "The measures to take effect by June were designed to lift restrictions on foreign currency operations, in line with deregulation in the banking industry," he said in a telephone interview. The spokesman said the relaxation of exchange controls highlighted a broader package of reforms announced last Friday. The central bank said in a statement the measures included increased provisions for high-risk borrowers and a provision for future pension fund obligations. It said the measures were the latest steps to deregulate Spain's financial sector, a move triggered by entry into the Community last year. Spain has five years to complete bank deregulation, a process that began in 1978 when the government allowed foreign banks to open branches. Since then 39 foreign banks have come into the market and they now control about 15 pct of the system's lending assets. Residents in Spain can now borrow freely in foreign currency up to the equivalent of 1.5 billion pesetas against a previous ceiling of 750 mln pesetas. The 750 mln peseta limit was set last March. Between that date and the end of last year some 430 mln dlrs flowed into the country on new foreign currency loans. The central bank spokesman said operations over 1.5 billion pesetas were technically subject to authorisation, but would be given clearance if the government failed to act in 15 days. Spanish banks will also be allowed to expand their foreign currency funding, formerly obtainable through deposits, by issuing certificates of deposit, bonds and commercial paper. They can also employ these funds to invest in foreign issues, while before they had to be converted into deposits. Foreign exchange operations can be in mixed currencies, instead of having to borrow and lend in the same currency. The central bank has also lifted the restriction on the amount of foreign exchange loans, which previously were limited to three times a bank's capital equity. The latest deregulation measures were welcomed by most bankers, in contrast to rulings issued earlier this month which imposed a 19 pct reserve requirement on new convertible peseta funds held by banks and freed short term deposit rates. The reserve requirement, which was already in place on normal peseta deposits, was intended to curb short-term foreign speculative capital which is entering the country and threatening the government's money supply growth target. A foreign banker said high reserve requirements, which now account for about 30 pct of deposits, placed Spanish banks at a disadvantage with European competitors. The government reduced fixed asset investment requirements to 11 pct from 23 pct to help offset the negative impact of interest rate deregulation. "The real problem is the freeing of interest rates," the banker said. "This is going to take a big bite out of profits." The ruling lifted a six pct ceiling on interest rates paid on deposits of up to 180 days. The chairman of one of Spain's leading banks said the measure was expected to bring a 20 pct drop in profits this year.  
FED SAYS IT SETS THREE-DAY SYSTEM REPURCHASE AGREEMENTS.  FED SAYS IT SETS THREE-DAY SYSTEM REPURCHASE AGREEMENTS  
AUSTRALIAN CURRENCY TRADING SET RECORD IN JANUARY. Spot volume in the Australian foreign exchange market jumped to a record 22.63 billion dlrs a day in January from 16.18 billion in December and 8.27 billion a year earlier, the Reserve Bank said in its monthly bulletin. The previous record was 17.51 billion dlrs last August. The peak broke a steady trading trend of 15 to 17 billion dlrs a day seen in the second half of 1986. Including forward deals, total deliverable volume was 27.01 billion dlrs a day (13.43 billion against the Australian dollar) against 19.56 billion (8.48 billion) in December and 9.92 billion (5.88 billion) a year earlier, the bank said.  
U.K. MONEY MARKET DEFICIT FORECAST AT 450 MLN STG. The Bank of England said it forecast a shortage of around 450 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 650 mln stg while banker's balances below target will take out around 50 mln stg. Partly offsetting these outflows, exchequer transactions and a fall in note circulation will add some 200 mln stg and 50 mln stg to the system respectively.  
DOLLAR SEEN FALLING UNLESS JAPAN SPURS ECONOMY. Underlying dollar sentiment is bearish, and operators may push the currency to a new low unless Japan takes steps to stimulate its economy as pledged in the Paris accord, foreign exchange analysts polled by Reuters said here. "The dollar is expected to try its psychological barrier of 150.00 yen and to fall even below that level," a senior dealer at one leading bank said. The dollar has eased this week, but remains stable at around 151.50 yen. Six major industrial countries agreed at a meeting in Paris in February to foster currency stability. Some dealers said the dollar may decline in the long term, but a drastic fall is unlikely because of U.S. Fears of renewed inflation and fears of reduced Japanese purchases of U.S. Treasury securities, needed to finance the U.S. Deficit. Dealers generally doubted whether any economic package Japan could adopt soon would be effective enough to reduce its trade surplus significantly, and said such measures would probably invite further U.S. Steps to weaken the dollar. Under the Paris accord, Tokyo promised a package of measures after the fiscal 1987 budget was passed to boost domestic demand, increase imports and cut its trade surplus. But debate on the budget has been delayed by an opposition boycott of Parliamentary business over the proposed imposition of a five pct sales tax, and the government has only a slim chance of producing a meaningful economic package in the near future, the dealers said. If no such steps are taken, protectionist sentiment in the U.S. Congress will grow, putting greater downward pressure on the dollar, they said. The factors affecting the U.S. Currency have not changed since before the Paris accord, they added. "Underlying sentiment for the dollar remains bearish due to a still-sluggish U.S. Economic outlook, the international debt crisis triggered by Brazil's unilateral suspension of interest payments on its foreign debts and the reduced clout of the Reagan administration as a result of the Iran/Contra arms scandal," said a senior dealer at a leading trust bank. "There is a possibility that the dollar may decline to around 140.00 yen by the end of this year," said Chemical Bank Tokyo branch vice president Yukuo Takahashi. But operators find it hard to push the dollar either way for fear of possible concerted central bank intervention. Dealers said there were widespread rumours that the U.S. Federal Reserve telephoned some banks in New York to ask for quotes last Wednesday, and even intervened to sell the dollar when it rose to 1.87 marks. The Bank of England also apparently sold sterling in London when it neared 1.60 dlrs on Wednesday, they said. But other dealers said they doubted the efficacy of central bank intervention, saying it may stimulate the dollar's decline because many dealers are likely to await such dollar buying intervention as a chance to sell dollars. However, First National Bank of Chicago Tokyo Branch assistant manager Hiroshi Mochizuki said "The dollar will not show drastic movement at least to the end of March." Other dealers said the U.S. Seems unwilling to see any strong dollar swing until Japanese companies close their books for the fiscal year ending on March 31, because a weak dollar would give Japanese institutional investors paper losses on their foreign holdings, which could make them lose interest in purchases of U.S. Treasury securities. U.S. Monetary officials may refrain from making any comments this month to avoid influencing rates, they said.  
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN. The Bank of England said it had revised its forecast of the shortage in the money market today down to 400 mln stg from 450 mln stg.  
U.K. MONEY MARKET RECEIVES 16 MLN STG ASSISTANCE. The Bank of England said it had provided the money market with 16 mln stg help in the afternoon session. The Bank did not operate in the market in the morning and earlier revised its estimate of the shortage in the system today down to 400 mln stg from 450 mln. The central bank purchased bills outright in band one at 10-3/8 pct comprising two mln stg of local authority bills and 14 mln stg of bank bills.  
U.K. MONEY MARKET GIVEN 120 MLN STG LATE HELP. The Bank of England said it provided the money market with late assistance of around 120 mln stg. This brings the bank's total help today to some 136 mln stg and compares with its forecast of a 400 mln stg shortage in the system.  
FED MAY SUPPLY RESERVES IN THE MONEY MARKETS. There is a slightly better than even chance that the Federal Reserve will enter the U.S. Government securities market to add temporary reserves, economists said. They said the Fed would supply the reserves indirectly via around 1.5 billion dlrs of customer repurchase agreements. Federal funds, which averaged 6.25 pct yesterday, opened at 6-1/16 pct and moved in a narrow range between there and six pct in early trading.  
ZAMBIAN EXCHANGE AUCTION TO RESUME AT END OF MARCH. Zambia will reintroduce a modified foreign exchange auction at the end of this month as part of a new two-tier exchange rate, central bank governor Leonard Chivuno said. Chivuno told a press conference at the end of three weeks of negotiations with the International Monetary Fund (IMF) that there would be a fixed exchange rate for official transactions and a fluctuating rate, decided by the auction, for other types of business. The Bank of Zambia previously held weekly auctions to distribute foreign exchange to the private sector and determine the kwacha's exchange rate, but these were suspended at the end of January. President Kenneth Kaunda said at the time that he was suspending the auction system in view of the rapid devaluation and violent fluctations of the exchange rate which had resulted. Business and banking sources said another reason for suspending the auction was that the central bank was low on foreign exchange and was 10 weeks behind in paying successful bidders.    The kwacha stood at 2.2 per dollar when the auction system was first introduced in October 1985, but it slid to around 15 per dollar by the time it was suspended 16 months later. Since then, Zambia has operated a fixed exchange rate of about nine kwacha per dollar.  
GULF ARAB MINISTERS DISCUSS ECONOMIC COOPERATION. Finance and economy ministers of the Gulf Cooperation Council (GCC) opened a two- day meeting to discuss further economic integration, officials said. They said issues to be discussed by the ministers from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) would include a recommendation by central bank governors on a common currency exchange rate. The governors agreed in January on a denominator on which to base currencies of the six states. Any decision will be forwarded for final approval to a GCC summit meeting due in Saudi Arabia late this year. The six states have different currency systems. Saudi Arabia, Bahrain, Qatar and the UAE are linked in theory to the International Monetary Fund's basket of currencies -- the special drawing right (SDR) -- but in practice to the dollar. Oman links its currency formally to the dollar, while Kuwait pegs its dinar to a trade-weighted basket devised by itself. The denominator chosen by central bank governors has not been disclosed, but some bankers expect the currencies to be linked to the SDR or a trade-weighted basket. Opening the meeting, Ahmed al-Tayer, the UAE's Minister of State for Finance and Industry, said implementation of joint economic agreements "is increasingly linking the interests of GCC citizens together." The general assembly of the Gulf Investment Corporation met in Abu Dhabi earlier under the chairmanship of Bahrain's Finance and National Economy Minister, Ibrahim Abdul-Karim The corporation was formed to contribute to joint economic and investment projects in the GCC. Officials said the corporation's assets rose to 1.31 billion dollars last year from 1.04 billion at the end of 1985.  
LAWSON SAYS HE IS CONTENT WITH CURRENT STERLING EXCHANGE RATE.  LAWSON SAYS HE IS CONTENT WITH CURRENT STERLING EXCHANGE RATE  
BANKERS TRUST ISSUING STG/DLR CURRENCY WARRANTS. Bankers Trust International Ltd said it is issuing 200,000 stg call/dlr put currency warrants at an initial offer price of 31.25 dlrs per warrant. The issue is guaranteed by Bankers Trust New York Corp. Each warrant entitles the holder to exchange 500 dlrs for stg at a rate of 1.60 stg/dlr and the minimum number of warrants exercisable or tradeable is 100. Exercise period for the warrants will run from April 22, 1987 until March 17, 1989. Payment is due April 15, 1987.  
GULF ARAB STATES MOVE TOWARDS ECONOMIC INTEGRATION. Finance and economy ministers of the six-nation Gulf Cooperation Council (GCC) have ended talks after adopting resolutions and recommendations aimed at boosting economic integration. But the ministers from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) did not endorse a resolution on a common currency exchange rate system. The UAE's Minister of State for Finance and Industry, Ahmed Humaid al-Tayer, told reporters after the two-day talks that the ministers referred the issue back to GCC central bank governors for further discussion. He said the governors, who agreed in January on a proposed denominator on which the six currencies should be based, were asked to resubmit the recommendation before July, when finance ministers were due to meet in Saudi Arabia. Bankers said the central bank governors would meet soon to discuss the issue, adding there was a possibility that a new system could be submitted for final approval to a GCC summit conference scheduled to be held in Saudi Arabia late this year. The denominator approved by the governors has not been made public, but banking sources said it could be similar to the European Monetary System (EMS). Tayer said the ministers agreed in principle to allow GCC citizens to set up businesses and work in any member state. They also agreed in principle on a recommendation for citizens to buy and own shares of GCC shareholding firms. He said the ministers discussed a report on imported goods containing radiation caused by last year's Chernobyl nuclear disaster in the Soviet Union, and agreed all products with excessive levels should be returned to the country of origin.  
U.K. MONEY MARKET DEFICIT FORECAST AT 450 MLN STG. The Bank of England said it forecast a shortage of around 450 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 650 mln stg while a rise in note circulation will take out around 30 mln stg. Partly offsetting these outflows, bankers' balances above target and exchequer transactions will add some 200 mln stg and 35 mln stg to the system respectively.  
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN. The Bank of England said it revised down its estimate of the deficit in the system today to 400 mln stg from 450 mln.  
U.K. MONEY MARKET GIVEN 181 MLN STG ASSISTANCE. The Bank of England said it provided the money market with 181 mln stg in assistance this morning. This compares with the Bank's revised shortage forecast of around 400 mln stg. The central bank purchased bank bills outright at the new dealing rates established yesterday. These comprised 65 mln stg in band one at 9-7/8 pct, 114 mln stg in band two at 9-13/16 pct and two mln stg in band three at 9-3/4 pct.  
U.K. MONEY MARKET GIVEN FURTHER 191 MLN STG HELP. The Bank of England said it gave the money market a further 191 mln stg assistance in the afternoon session. This takes the Bank's total help so far today to 372 mln stg and compares with its upwards revised estimate of the shortage in the system of around 400 mln stg. The central bank bought bank bills outright comprising 15 mln stg in band one at 9-7/8 pct and 176 mln stg in band two at 9-13/16 pct.  
U.K. MONEY MARKET GIVEN 40 MLN STG LATE ASSISTANCE. The bank of England said it provided the money market with late assistance of around 40 mln stg. This brings the Bank's total help today to some 412 mln stg and compares with its forecast of a shortage in the sytem of around 400 mln stg.  
FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.  FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS  
FED'S JOHNSON URGES STRONGER ALLIED GROWTH. Federal Reserve Board Vice Chairman Manuel Johnson said that the U.S.'s main industrial partners should expand their domestic growth. In a speech to a women's group here, Johnson said, "There is room for stronger domestic growth in those countries ... strong enough to absorb growth in U.S. export markets." Johnson also said there was a better alignment of exchange rates now and the Paris agreement to stabilize currencies has brought western nations a long way towards establishing that goal. Johnson said, "The Fed supports this pattern of exchange rates ... and we'll see if it leads to a convergence in trade. Quite possibly it can be achieved." Johnson said the Paris agreement achieved a better alignment of exchange rates in exchange for stimulus by the major surplus countries. He said this was "a major improvement and a step in the right direction" and added U.S. allies look very strongly to a U.S. budget deficit cut. "There will always be a potential risk of breakdown in international cooperation" without a budget deficit cut.  
ITALIAN PANEL URGES EXCHANGE LIBERALIZATION. Liberalization of Italy's foreign exchange controls should be "gradual" but also "reasonably rapid," a report issued by a study committee nominated by the Italian Treasury Ministry said. The report, looking at the country's financial development prospects, said Italy's large public sector deficit and growing public debt were among the considerations that made a gradual liberalization preferable. The report also favoured retention of the lira's six pct oscillation band with the European Monetary System (EMS) during the liberalization process in order to lessen short-term domestic interest rate fluctuations which could result from portfolio adjustments. The lira's fluctuation margin is currently significantly higher than that allowed for other EMS currencies. Italy has over recent months announced a series of deregulation moves in response to a European Community directive aimed at creating a genuine common market in goods, services and finance by 1992.  
LAWSON REPEATS HE IS CONTENT WITH STERLING LEVEL. U.K. Chancellor of the Exchequer Nigel today repeated that he was satisfied with the current level of sterling, both against the dollar and the West German mark. Lawson said in a television interview that he did not regard the pound's present exchange rate was uncomfortably high. "I think it is round about right," he said. "I think there was a time that they (British manufacturers) thought the (exchange) rate was uncomfortably high. But I think they are very satisfied with the present level." "But I have made it absolutely clear that I don't want to see the pound go through the roof," he added.  
BANK OF FINLAND WILL ANNOUNCE NEW MEASURES. The Bank of Finland called a news conference at 1200 GMT to announce new measures for the "development of the system of monetary control." A spokesman for the Bank declined to give further details. Banking sources said they expected the bank to announce it will actively take part in the interbank market and buy and sell certificates of deposit. The state treasury issues government paper with a maturity of up to one year. The central bank has so far not issued its own paper, the sources said.  
TREASURY'S BAKER SUPPORTS FED MONETARY POLICY. Treasury Secretary James Baker said in a newspaper interview that he supports the current course of Federal Reserve Board monetary policy. "The course of Fed policy is quite adequate as far as we are concerned," Baker said in an interview with the New York Times. In the interview, Baker declined to comment about the recent Paris accord among the six leading industrialized democracies when he was asked why the U.S. agreed to stabilize the dollar at current levels when the trade deficit hit a record level last year. Baker said in the newspaper interview that it was "a subject I prefer not to talk about." He said that if he explained why the U.S. agreed to help maintain the dollar at current levels "I would of necessity end up getting into some of the private agreements that support such and agreement" on the dollar. Baker was optimistic about Brazil, which has stopped interest payments on much of its outstanding debt with foreign commercial banks. "They are, after all, paying on time all the debt service and principal on their official debts, having just rescheduled with the Paris Club," Baker said in the newspaper interview. Baker said that Brazilian repreentatives had explained they intented to pay their commercial bank debts in full but needed time.  
BANK OF FINLAND TO TRADE IN BANKS' CERTIFICATES. The Bank of Finland said it has started dealings in banks' certificates of deposits (CDs) with immediate effect and that it was prepared to issue its own paper to stimulate operations on the domestic money market. Bank of Finland Governor Rolf Kullberg told a news conference the Bank will also limit credits on the call money market from March 30, 1987, by introducing a maximum credit amount and a penalty rate if banks exceed this ceiling. "The recent introduction of three-month money and these new regulations are decreasing the role of the call money market and the discount rate as monetary instruments," Kullberg said. Bankers welcomed the central bank measures saying these were needed to accelerate the domestic money market. The Bank of Finland had never before been allowed to issue its own CDs, they said. "The central bank for the first time has an instrument with which it really can influence the price of money in this country," one banker said. Under the new rules banks are limited to call money credits to a maximum of 7.5 pct of the total of their equity capital and cash reserves. A penalty rate of interest of 19 pct is now introduced if the limit is exceeded. Director Sixten Korkman at the Bank of Finland's monetary department said he expected the bank to pursue an active policy on the interbank market as an issuer of own-CDs. "We are free to do it, so maybe on Monday we will issue the first, just to see how the system functions. Overall I think we will issue at least a few times a week," Korkman told Reuters. He said the bank was likely to aim at CDs with a three-month maturity at first as the market was best developed for paper of that maturity. The Bank of Finland introduced last December three-month credits and deposits at rates determined by the central bank and the commercial banks as a shift away from the traditional overnight call money market. Liquidity on the call credit market has fallen from around nine billion markka in early December to 167 mln last week, while three-month credits have risen to three to four billion. On the interbank market there has been an increasing trade in banks' CDs, estimated to be some eight billion markka. In addition, commercial paper accounts for around five billion markka and Treasury Bills two billion.  
G-10 FINANCE OFFICIALS DISCUSS DEBT, CURRENCIES. Deputy Finance Ministers from the Group of 10 leading western industrialised countries met here to discuss the world debt crisis, trade imbalances and currency stability today following last month's Paris monetary accord, sources close to the talks said. The officials met at the offices of the International Monetary Fund (IMF) to discuss broad aspects of world monetary policy in preparation for the IMF's interim committee meeting in Washington in April. The talks were the first high-level international review of the monetary situation since the accord last month reached by the U.S., West Germany, France, Britain, Japan and Canada to stabilise world currency markets at around present levels following the 40 pct slide in the dollar since mid-1985. Other countries represented at today's talks were Italy, which refused to attend last month's meeting on the grounds that it was being excluded from the real discussions, the Netherlands, Belgium and Switzerland. Many of the officials had met earlier today and yesterday within the framework of the Organisation for Economic Cooperation and Development (OECD) to review the slow progress being made in cutting the record 170 billion dlr U.S. Trade deficit and persuading West Germany and Japan to open their economies to more foreign imports.  
NO ZIMBABWE DOLLAR DEVALUATION - CENTRAL BANK. Zimbabwe's Reserve Bank, the nation's central bank, has denied the Zimbabwe dollar would be devalued. Bank Governor Kombo Moyana told The Herald daily newspaper "unfortunate and completely unfounded speculation that a depreciation of the Zimbabwe dollar was about to occur" had aggravated a serious foreign exchange shortage. "During February and the early part of March this (speculation) caused importers to bring forward their payments and exporters to delay as long as possible the inward remittance of export receipts, resulting in a significant slowdown in net foreign exchange inflows," he added.  
NIGERIA CHANGES AUCTION RULES TO DEFEND THE NAIRA. Nigeria's Central Bank has changed the rules governing its foreign exchange auctions in what analysts see as a means of defending the naira currency, which has depreciated steadily. The bank said in a statement that from April 2, banks bidding for foreign exchange would have to pay at the rate they offered and not, as presently, at the rate of the lowest successful bid made at the auction. This should discourage banks from bidding high to ensure that they were successful while paying the lower "marginal" rate, analysts said. "It should act as a brake because banks will know that if they bid high they will have to pay what they offered," a Western diplomat commented. The naira has depreciated against the dollar by 62 pct since the auctions, known as the Second-Tier Foreign Exchange Market (SFEM), began last September 26. At last week's session the Nigerian currency was fixed at 4.0 to the dollar, the third fall in a row. "They were clearly worried... And this is the logical way of trying to stop the trend," the diplomat said. The Central Bank also announced the auctions would be fortnightly, not weekly, beginning on April 2. It was not immediately clear whether next Thursday's scheduled session would still take place, nor if the bank was planning to double the 50 mln dlrs which are normally on offer at each auction. Demand for foreign exchange has consistently outstripped supply, encouraging banks to bid high and thus further weakening the naira. If the normal weekly allocation is not doubled at the fortnightly session, high demand could undermine the objective of the new system, analysts said. Although bidding banks will now pay what they offered, the official exchange rate for the naira applying to business transactions will continue to be the marginal rate -- the lowest successful bid. SFEM is a central part of Nigeria's structural adjustment program, which is considered to be the most ambitious economic recovery plan in Black Africa. The program involves setting a realistic exchange rate for the naira, which was over-valued for many years, liberalising imports, boosting agriculture, removing subsidies and reducing inefficient government participation in the economy. The World Bank has played a prominent part in designing this dramatic blue-print and in selling it to an often sceptical public which fears inflation and lower living standards. Ishrat Husain, the World Bank's representative in Nigeria, said yesterday he was satisfied both with the adjustment program as a whole and the foreign exchange auctions. "So far so good" he told a meeting of bankers in Lagos, adding that only members of Nigeria's import-dependent elite would suffer hardship while the common man would benefit. Fears that the program would encourage inflation were incorrect, he said. Bumper harvests had reduced rural inflation and urban prices had already reflected the naira's black market value before the currency was allowed to find its true level last September.  
U.S. CREDIT MARKET OUTLOOK - MINI-REFUNDING. A hefty slice of new U.S. Treasury supply is not the most welcome prospect for a slumbering credit market, but at least this week's offerings should provide it with some focus, economists said. "Banks and mutual funds have cash that should be put to work, so the auctions should breathe some life into the market," said economists at Merrill Lynch Capital Markets Inc. The Treasury will place a 25 billion dlr package of two-year, four-year and seven-year notes on the sales block this week. The "mini-refunding," which will raise 9.27 billion dlrs in new cash, comprises 10 billion dlrs of two-year notes for auction on Tuesday, 7.75 billion dlrs of four-year notes on Wednesday and 7.25 billion dlrs of seven-year notes on Thursday. The market also faces the regular weekly three- and six-month bill auction today, amounting to 12.8 billion dlrs. The mini-refunding does not come at a particularly auspicious time for the market. Bond prices have been drifting sideways in a narrow range against the backdrop of a cloudy U.S. Economic outlook, diminished chances of a change in Federal Reserve Board policy and a stable dollar. Moreover, the bond market's inertia has compared unfavourably with the rash of activity taking place in high-yield markets overseas, like the U.K., As well as in U.S. Equities. But according to the Merrill Lynch economists, there are signs the pall hanging over the U.S. Bond market is lifting a bit. "Customer activity has been light, but all on the buy-side, and there is a marked absence of selling," they said in a weekly report. Philip Braverman of Irving Trust Securities Inc believes banks will snap up the two- and four-year issues at this week's sales. "The banks are in need of investments that provide earnings. Though the yield spread to the cost of carrying these maturities has been wider, it is still positive," he said in a weekly market review. But economists agreed not even the auctions will generate enough impetus for a major move. This will only come once the overseas markets have had their run. "Based on last week's events, there is little to indicate that the appetite for yield has begun to wane," said economists at Salomon Brothers Inc. Indeed, talk persisted last week that Japanese investors are planning to re-weight their portfolios in favour of the higher-yielding markets at the start of Japan's new fiscal year on April 1. And while traditionally the Japanese have not been big buyers of the shorter-dated issues on offer at this week's U.S. Auctions, such reports undermine market confidence. Even actions by the British, Australian and Canadian monetary authorities to curb the rise of their currencies should also enhance the attractiveness of their respective bond markets, the Salomon Brothers' economists said. Meanwhile, ecomomic releases are unlikely to enliven the U.S. Market unless they deviate widely from expectations, economists said. This week's economic calendar begins on Tuesday with February durable goods orders. Economists expect a rebound from January's depressed levels. Peter Greenbaum of Smith, Barney, Harris Upham and Co said several areas, including transport equipment, should have bounced back. But a decline in military capital goods will cap total new orders. He forecasts a rise of two pct after January's 6.7 pct slump. Some other economists foresee a gain as large as five pct. Friday's consumer price report for February is expected to show an increase of about 0.3 pct after a 0.7 pct January gain. Economists said energy prices -- the driving force behind the January rise -- rose more moderately last month, while food prices declined. Meanwhile, economists warned that the federal funds rate will be subject to volatility in the weeks ahead due to the approach of quarter-end and the mid-April tax date. Some economists expect the Fed to execute a bill pass this week because its adding requirement increases sharply in the new statement period beginning on Thursday. Fed funds traded at 6-1/16 pct late Friday and are expected to open near that level.  
SWISS SIGHT DEPOSITS RISE 743.7 MLN FRANCS. Sight deposits of commercial banks at the Swiss National Bank rose 743.7  mln Swiss francs in the second 10 days of March to 8.40 billion, the National Bank said. Foreign exchange reserves fell 392.1 mln francs to 33.55 billion. Sight deposits are a major indicator of money market liquidity in Switzerland.  
NIGERIA CHANGES AUCTION RULES TO DEFEND NAIRA. Nigeria's Central Bank has changed the rules governing its foreign exchange auctions in what analysts see as a means of defending the naira currency, which has depreciated steadily. The bank said in a statement that from April 2, banks bidding for foreign exchange would have to pay at the rate they offered and not, as presently, at the rate of the lowest successful bid made at the auction. This should discourage banks from bidding high to ensure that they were successful while paying the lower "marginal" rate, analysts said. The Central Bank also announced the auctions would be fortnightly, not weekly, beginning on April 2.  
U.S. TREASURY'S BAKER SAYS CURRENCIES WITHIN RANGES THAT BETTER REFLECT FUNDAMENTALS.  U.S. TREASURY'S BAKER SAYS CURRENCIES WITHIN RANGES THAT BETTER REFLECT FUNDAMENTALS  
CURRENCIES BETTER REFLECT FUNDAMENTALS - BAKER. Treasury Secertary James Baker said currencies were now within ranges that better reflected economic fundamentals. In a speech to the annual meeting of the Inter-American Development Bank, he said, "Excchange have moved into ranges that better reflect economic fundamentals." He noted that in particular that dollar has fallen from its high point in early 1985 helping to moderate protectionist pressures in the U.S.  
CHICAGO FUTURES LEADER SAYS MARKETS CAN ADAPT. Foreign currency futures markets would not be harmed if the leading industrial countries agreed to restrict currency movements to within a narrow band, said Leo Melamed, chairman of the Chicago Mercantile Exchange's, CME, executive committee. "The target zone would not affect our market I think at all.... A 10 pct range in the Deutsche mark gives us a healthy market," Melamed told Reuters in an interview. "We were willing to live in the old Smithsonian era with a four pct shift," he said, referring to permitted currency fluctuations in the early 1970s. "One thing you can adjust is to make each contract a larger value." As chairman of the CME in 1969-71, Melamed was instrumental in the development of currency futures, which now are crucial to the Chicago exchange. Melamed said capital flows -- which he estimated can approach 200 billion dlrs a day -- would overwhelm efforts by governments to control currency fluctuations. "They can do it for a day, in terms of intervention, an hour, a week maybe, but not over a period of time. So it's unrealistic and it doesn't work and it's unnecessary." The CME's top policymaker also said a decision by the exchange to advance the quarterly settlement time of its stock index futures contract to the morning from the afternoon would help eliminate dramatic price gyrations in futures and equity markets on so-called "triple-witching" day. "We think that the settlement in the morning will have a salutary effect so that over a longer period of time I think this issue (triple witching) will go away because of the change in the structure as of next June," when the move is scheduled to go into effect, he said. Melamed said proposed changes in floor practices by traders of the popular Standard and Poor's 500 stock index future would address complaints of trading abuses and stimulate trading. Two weeks ago, the CME board of directors proposed barring brokers on the top step of the pit from trading for their own account. The board also proposed requiring brokers engaged in dual trading elsewhere in the pit to record personal trades to the nearest minute and curbing trading between broker groups. The changes "will in time have an extremely positive effect on the marketplace. That's going to prove very, very instrumental in increasing volume over time," he said, predicting the increase would come within a year. Melamed, also chairman of Dellsher Investment Co Inc, said the CME last week withdrew a proposal to put a 12-point limit on the S and P 500 index's daily price movement when the Commodity Futures Trading Commission told the exchange it could not be a temporary program. The CME also received "many negative comments, many more than we anticipated," Melamed conceded. Many futures commission merchants predicted sell orders would accelerate in the event the price approached the bottom limit.  
U.K. PROFITTED FROM AUTUMN INTERVENTION - LAWSON. Britain has reaped profits by using a stronger pound to buy back dollars used by the government last autumn to support sterling during a currency crisis, Chancellor of the Exchequer Nigel Lawson said. He said in a parliamentary debate, "I can now tell the House (of Commons) that the dollars that were sold from the reserves in September and October (1986) have subsequently all been repurchased - at a profit of some tens of millions of pounds." Hindsight had proved him right to resist market pressures then for a two percentage point interest rate rise, he said. The increase in base rates was instead limited then to one point. During a debate on the 1987/88 British budget which Lawson unveiled last week, he said that "during the period of foreign exchange market turbulence which followed the somewhat inconclusive Group of Five and Group of Seven meetings at the end of September, I authorised the Bank of England to intervene unusually heavily in order to buy breathing space that would enable me to confine the interest rate rise to one pct rather than the two pct the market was then pressing for." He said that that one percentage point increase, effected in October 1986, had been reversed by this month's two half point cuts in banks' base lending rates. They are now at 10 pct. Treasury figures show that the underlying change in British reserves - seen as a guide to possible Bank of England intervention on foreign exchange markets - suggest that the authorities sold around 1.0 billion dlrs during September and October 1986, government sources said.  
TOKYO - Bank of Japan buys small amount of dollars, dealers said.  TOKYO - Bank of Japan buys small amount of dollars, dealers said  
Miyazawa says time has come for major nations to act on exchange rates.  Miyazawa says time has come for major nations to act on exchange rates  
MAJOR NATIONS MUST ACT ON CURRENCIES - MIYAZAWA. Finance Minister Kiichi Miyazawa said the time has come for major industrialised nations to take action on exchange rates in line with their agreement last month in Paris. In Paris, Britain, Canada, France, Japan, the U.S. And West Germany agreed to coooperate to hold currency rates around their then current levels. Miyazawa would not say what specific measures major nations would take, but told reporters the measures had been discussed in Paris. The dollar fell to a record low against the yen this morning, piercing the 150 yen barrier.  
Sumita says Bank of Japan will intervene if necessary.  Sumita says Bank of Japan will intervene if necessary  
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY. Bank of Japan Governor Satoshi Sumita said in a statement the central bank will intervene in foreign exchange markets to stabilise exchange rates if necessary in close cooperation with other major industrial nations. Sumita said the Bank will take adequate measures including market intervention, if necessary, in line with the February 22 Paris agreement by six major industrial nations. Canada, Britain, France, Japan, the U.S. And West Germany agreed to cooperate in stabilising exchange rates around current levels. Sumita's statement was issued after the dollar slipped below 150 yen to hit a record low of 148.40. "It is inevitable that exchange rates fluctuate under the system of floating rates," Sumita said. The fact the dollar plunged below 150 yen does not mean anything significant under the floating system, he said. The six nations agreed in Paris exchange rates prevailing then were broadly consistent with underlying economic fundamentals and further substantial rate shifts could damage growth and adjustment prospects in their countries, the Paris statement said.  
U.K. MONEY MARKET DEFICIT FORECAST AT 300 MLN STG. The Bank of England said it forecast a shortage of around 300 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 338 mln stg while bankers' balances below target will take out around 25 mln stg. Partly offsetting these outflows, a fall in note circulation and exchequer transactions will add some 45 mln stg and 25 mln stg to the system respectively.  
MIYAZAWA SAYS U.S. LIKELY TO INTERVENE. Finance Minister Kiichi Miyazawa told Parliament's Lower House Finance Committee that the U.S. Is expected to intervene in the foreign exchange market to stabilise exchange rates, political sources said. Asked if the U.S. Federal Reserve Board agreed in Paris last month to intervene to stabilise exchange rates, Miyazawa said yes, the sources said. Miyazawa was also quoted as saying that he is sceptical about the effectiveness of currency reference ranges even if major nations agree on such an idea as it is extremely difficult to set such ranges.  
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY. Bank of Japan Governor Satoshi Sumita said in a statement the central bank will intervene in foreign exchange markets to stabilise exchange rates if necessary in close cooperation with other major industrial nations. Sumita said the Bank will take adequate measures including market intervention, if necessary, in line with the February 22 Paris agreement by six major industrial nations. Canada, Britain, France, Japan, the U.S. And West Germany agreed to cooperate in stabilising exchange rates around current levels. Sumita's statement was issued after the dollar slipped below 150 yen to hit a record low of 148.40. "It is inevitable that exchange rates fluctuate under the system of floating rates," Sumita said. The fact the dollar plunged below 150 yen does not mean anything significant under the floating system, he said. The six nations agreed in Paris exchange rates prevailing then were broadly consistent with underlying economic fundamentals and further substantial rate shifts could damage growth and adjustment prospects in their countries, the Paris statement said.  
MAJOR NATIONS MUST ACT ON CURRENCIES - MIYAZAWA. Finance Minister Kiichi Miyazawa said the time has come for major industrialised nations to take action on exchange rates in line with their agreement last month in Paris. In Paris, Britain, Canada, France, Japan, the U.S. And West Germany agreed to coooperate to hold currency rates around their then current levels. Miyazawa would not say what specific measures major nations would take, but told reporters the measures had been discussed in Paris. The dollar fell to a record low against the yen this morning, piercing the 150 yen barrier. Asked if major nations were now negotiating on what measures to take, Miyazawa said they were not as measures had already been agreed in Paris.  
MIYAZAWA SAYS U.S. LIKELY TO INTERVENE. Finance Minister Kiichi Miyazawa told Parliament's Lower House Finance Committee that the U.S. Is expected to intervene in the foreign exchange market to stabilise exchange rates, political sources said. Asked if the U.S. Federal Reserve Board agreed in Paris last month to intervene to stabilise exchange rates, Miyazawa said yes, the sources said. Miyazawa was also quoted as saying that he is sceptical about the effectiveness of currency reference ranges even if major nations agree on such an idea as it is extremely difficult to set such ranges.  
U.K. MONEY MARKET GIVEN 115 MLN STG ASSISTANCE. The Bank of England said it had provided the money market with 115 mln stg assistance in the morning session. This compares with the Bank's forecast of a 300 mln stg shortage in the system today. The central bank bought bills outright in band two at 9-13/16 pct comprising 73 mln stg bank bills and 42 mln stg local authority bills.  
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY. Bank of Japan Governor Satoshi Sumita said in a statement the central bank will intervene in foreign exchange markets to stabilise exchange rates if necessary in close cooperation with other major industrial nations. Sumita said the Bank will take adequate measures including market intervention, if necessary, in line with the February 22 Paris agreement by six major industrial nations. Canada, Britain, France, Japan, the U.S. And West Germany agreed to cooperate in stabilising exchange rates around current levels. Sumita's statement was issued after the dollar slipped below 150 yen to hit a record low of 148.40. "It is inevitable that exchange rates fluctuate under the system of floating rates," Sumita said. The fact the dollar plunged below 150 yen does not mean anything significant under the floating system, he said. The six nations agreed in Paris exchange rates prevailing then were broadly consistent with underlying economic fundamentals and further substantial rate shifts could damage growth and adjustment prospects in their countries, the Paris statement said.  
U.K. MONEY MARKET GIVEN FURTHER 104 MLN STG HELP. The Bank of England said it provided the money market with assistance of 104 mln stg in the afternoon session. This takes the bank's total help so far today to 219 mln stg and compares with its estimate of a 300 mln stg shortage. The central bank bought outright 104 mln stg in bank bills in band two at 9-13/16 pct.  
U.K. MONEY MARKET GIVEN 10 MLN STG LATE ASSISTANCE. The Bank of England said it provided the money market with late help of about 10 mln stg. This takes the bank's total help today to some 229 mln stg and compares with its forecast of a 300 mln stg shortage.  
SUDAN REJECTS IMF DEMAND FOR DEVALUATION. Sudan has rejected a demand by the International Monetary Fund for a currency devaluation because such a move would have a negative impact on its economy, the official Sudan News Agency (SUNA) reported. Finance Minister Beshir Omer, quoted by SUNA, said his government also rejected an IMF demand to lift state subsidies on basic consumer goods. SUNA, monitored by the British Broadcasting Corporation, said Omer made the remarks after a meeting in Khartoum yesterday with IMF envoy Abdel-Shakour Shaalan. Sudan, burdened by a foreign debt of 10.6 billion dlrs, is some 500 mln dlrs in arrears to the IMF, which declared it ineligible for fresh loans in February last year. In February 1985, Sudan announced a 48 pct devaluation of its pound against the dollar, adjusting the official exchange rate to 2.5 pounds to the U.S. Currency. Since then, it has resisted pressure from main creditors for more currency adjustments, arguing that past devaluations had failed to boost exports but raised local consumer prices. Sudan also has an incentive rate of four pounds to the dollar for foreign visitors and remittances by expatriate workers. Dealers in Khartoum's thriving black market said the dollar was sold at 5.5 pounds today. With stringent import regulations and the government increasingly short of foreign currency, black market dollars are used to finance smuggled imports from neighbouring countries, mainly Egypt, Kenya, Ethiopia and Zaire. Western diplomats in Khartoum say the meetings between IMF and Sudanese government officials do not amount to formal talks, but rather an effort by the IMF to monitor Sudan's economic performance. The diplomats said Sudan hoped a planned four-year economic recovery program would be acceptable to the IMF as a serious attempt to tackle the country's economic troubles and persuade its Gulf Arab creditors to pay the IMF arrears. This, they said, could provide Sudan with a clean bill of health from the IMF that it could take to Western government creditors, grouped informally in the so-called Paris Club, to reschedule debt payments. Twenty-three pct of Sudan's total foreign debt is owed to members of the Paris Club, the diplomats said. Sudan's Finance Minister said last month the country's IMF representative had told him the fund's executive board was "very pleased with the 18.5 mln dlrs arrears we have paid in the past couple of months." The representative, Omer Said, said IMF Managing Director Michel Camdessus said he would ask Saudi Arabia, to which Sudan owes about 1.4 billion dlrs, to help Khartoum to pay more. Sudan has an annual debt liability of nearly 900 mln dlrs but set aside only some 200 mln dlrs to service debts in the fiscal year ending next June 30.  
FED GOVERNOR SUPPORTS COMMODITY PRICE GUIDE. Robert Heller, a member of the Board of Governors of the Federal Reserve System, said commodity prices could form a useful guide for setting domestic and international monetary policy. Speaking to the conservative Heritage Foundation, Heller said, "A broadly based commodity price index may be worth exploring" as a guide to monetary policy. "In times of rising commodity prices, monetary policy might be tightened and in times of falling commodity prices, monetary policy might be eased," he said. Commodities are also standardized to avoid measurement problems and occur at the beginning of production so as to give "early warning" signs of wholesale and retail changes. "There is no need to react to every small fluctuation in commodity prices or to do so on a daily basis," Heller said in a prepared text. "But if commodity prices exhibit a broad trend, a policy action might be considered," he said. Heller said using a broad-based commodity price index as an indicator for monetary policy would also contribute to stabilized currency exchange rates. Commodity prices are generally uniform worldwide and prices for them are more consistent than for other types of goods, he said. He said other beneficial effects would be to stabilize export commodity prices for developing countries by using a commodity basket as a guidepost for monetary policy.  
BALDRIGE SAYS CHANGES NEEDED IN EXCHANGE RATES OF CURRENCIES PEGGED TO DOLLAR.  BALDRIGE SAYS CHANGES NEEDED IN EXCHANGE RATES OF CURRENCIES PEGGED TO DOLLAR  
Current exchange rates almost within levels agreed by major nations - Sumita.  Current exchange rates almost within levels agreed by major nations - Sumita  
Sumita says major nations cooperated to stabilise currencies..  Sumita says major nations cooperated to stabilise currencies.  
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA. Bank of Japan governor Satoshi Sumita said that current exchange rates are almost within the levels agreed to by six major nations last month in Paris. Asked whether a dollar/yen rate of 148 or 149 reflected economic fundamentals, he said current rates almost reflect fundamentals. Sumita told reporters major nations have cooperated to bring about currency stability in line with the Paris agreement, which stipulated that they would closely cooperate to that end. He repeated the central bank will intervene if necessary, adding he did not think a dollar free-fall was likely. But Sumita said he could not say exactly what currency levels would be considered in line with underlying economic fundamentals. In Paris on February 22, Britain, Canada, France, Japan, the U.S. And West Germany agreed to cooperate to hold currencies around their then current levels. Sumita said he could not find any specific reasons behind the fall of the dollar to a record low against the yen yesterday. But he said the market rushed to sell dollars as it nervously reacted to statements abroad and to developments surrounding trade tensions. U.S. Treasury Secretary James Baker said over the weekend that the Paris pact did not encompass fixed tragets for the dollar. U.S. Trade Representative Clayton Yeutter called U.S/Japan relations on certain key trade issues very strained. The market reacted nervously because the dollar has been moving narrowly against the yen since mid-January, Sumita said. He added he does not expect the yen/dollar exchange rate to remain unstable because the market is concerned about a sharp rise of the yen. The Bank of Japan will keep a close watch on exchange rates in line with the Paris accord, he added.  
MIDDLE EAST CURRENCY MARKET SEES KEY CHANGES. Middle East currency dealers meet in Abu Dhabi this weekend at a time of fundamental change in their business, which has seen a growing volume of trade shift from the Arab world to London. The 14th congress of the Inter-Arab Cambiste Association also comes at a time when the prospect of a unified Gulf currency system is more real that at any time this decade. Foreign exchange traders and bank treasurers said these issues, and the slide of the Lebanese pound, can be expected to be major talking points. About 250 traders and treasurers from some 115 banks -- including some in London and other major non-Arab financial centres -- are expected to attend the conference which begins on on Saturday. Bankers said it is hard to avoid the impression that a growing proportion of transactions in the Saudi riyal market, by far the largest in the region, is being carried out in London. The market had been dominated by Saudi Arabia's 11 banks, foreign exchange houses in the Kingdom and offshore banks in Bahrain. But bankers said more and more Saudi and Bahrain-based banks are boosting their treasury operations in London. As recession hit the Middle East and the need for trade finance in the region declined, many offshore banks in Bahrain ran down their currency operations. None of the four major U.K. Clearing banks now has a dealing room on the island. The two major Bahrain-based international banks, <Arab Banking Corp> and <Gulf International Bank BSC> have increased their presence in London and Saudi banks are busy upgrading representative offices to branch status to allow dealing. One economist said: "It is cheaper to run a riyal book in London than staff an expensive offshore operation in Bahrain... There is now the nucleus of a two-way market in London." Jeddah-based <Riyad Bank> set up as a licensed deposit taker in London in 1984, while its main rival in Saudi Arabia, <National Commercial Bank> (NCB) won a licence in November 1986. The major market maker has traditionally been London-based consortium bank <Saudi International Bank> but the kingdom joint-venture <Saudi American Bank> (SAMBA) also upgraded its London operation to deposit taker status in mid-February. One senior currency trader in Riyadh said: "Inevitably the volume of business in London has gained pace with the two new licences for NCB and SAMBA, but there is no question that most of the liquidity still rests in Saudi Arabia." Currency traders said the shift to London in the Saudi riyal market is difficult to quantify. Bahrain Monetary Agency figures show regional currency deposits held by offshore banks, most in Saudi riyals, dropped to the equivalent of 12.2 billion dlrs at end-September 1986 from 13.4 billion at end-1985 and a 1983 peak of 15.0 billion. The shift has prompted changes in dealing habits. Riyal trading in the Gulf on Saturdays and Sundays has become very quiet with London closed while some Saudi and Bahrain banks now staff offices on Friday, the Gulf weekend. Traders also expect <Arab National Bank> to step up London operations. Traders say it is difficult to foresee the riyal market moving completely out of the region, partly because of local demand and partly because of what is seen as the Saudi Arabian Monetary Agency's (SAMA) desire to moderate internationalisation of the riyal and protect it from undue speculation. There have been far fewer signs of the Kuwaiti dinar market shifting from its natural base of Kuwait and trading in Bahrain and London is still limited. But for the first time since the formation of the six nation Gulf Cooperation Council (GCC) in 1981 there are signs that a much mooted currency union could come into force soon. Currency traders said it remains unclear what form a final currency union would take for the six states -- Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates. But plans to link the six currencies in a European Monetary System style with a common peg have been discussed at high level and could be a topic on the GCC's annual summit expected to be held in Saudi Arabia late in the year. One dealer said: "A lot of exposure is being given to discussions and plans appear to be quite advanced. But in the end a political decision has to be taken to give the go-ahead." One open question is that of a common peg for currencies. The idea of linking the six currencies has been debated since the start of the GCC. The Kuwaiti dinar is currently linked to a basket of currencies while the other five currencies are either officially or in practice linked to the U.S. Dollar. Some traders said a currency union could mean speculation against the Saudi riyal rubbing off on other Gulf currencies, but plans call for a permitted divergence in the system of 7-1/4 pct, large enough to avoid sudden strains. Another topic for debate is expected to be the continued slide of the Lebanese pound against the dollar and the undermining of the effective capital base of Lebanese banks.  
U.K. MONEY MARKET FORECAST REVISED TO SHOW SURPLUS. The Bank of England said it had revised its forecast of the liquidity position in the money market today to a surplus of 150 mln stg after it estimated a flat position earlier this morning.  
BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET. The Bank of England said it had not operated in the money market during the morning session. Earlier, the Bank revised its forecast of the liquidity position in the system today to a surplus of 150 mln stg from its original estimate of a flat position.  
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA. Bank of Japan governor Satoshi Sumita said that current exchange rates are almost within the levels agreed to by six major nations last month in Paris. Asked whether a dollar/yen rate of 148 or 149 reflected economic fundamentals, he said current rates almost reflect fundamentals. Sumita told reporters major nations have cooperated to bring about currency stability in line with the Paris agreement, which stipulated that they would closely cooperate to that end. He repeated the central bank will intervene if necessary, adding he did not think a dollar free-fall was likely. But Sumita said he could not say exactly what currency levels would be considered in line with underlying economic fundamentals. In Paris on February 22, Britain, Canada, France, Japan, the U.S. And West Germany agreed to cooperate to hold currencies around their then current levels. Sumita said he could not find any specific reasons behind the fall of the dollar to a record low against the yen yesterday. But he said the market rushed to sell dollars as it nervously reacted to statements abroad and to developments surrounding trade tensions. U.S. Treasury Secretary James Baker said over the weekend that the Paris pact did not encompass fixed tragets for the dollar. U.S. Trade Representative Clayton Yeutter called U.S/Japan relations on certain key trade issues very strained. The market reacted nervously because the dollar has been moving narrowly against the yen since mid-January, Sumita said. He added he does not expect the yen/dollar exchange rate to remain unstable because the market is concerned about a sharp rise of the yen. The Bank of Japan will keep a close watch on exchange rates in line with the Paris accord, he added.  
BANK OF ENGLAND DRAINS MONEY MARKET LIQUIDITY. The Bank of England said it drained liquidity from the money market when it sold 167 mln stg of treasury bills due March 27 at rates between 9-9/16 and 10 pct. Earlier, the bank estimated a surplus of around 250 mln stg in the system today.  
BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES.  BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES  
BAKER SAYS U.S. WANTS TO STABILIZE EXCHANGE RATES. Treasury Secretary James Baker said the United States and other nations were willing to cooperate to stabilize foreign exchange rates at the levels that existed at the time of an international agreement last month. "Our position with respect to the dollar goes back to the Paris Agreement that the currencies were within ranges broadly consistent with underlying economic conditions," Baker told a Senate committee. Baker continued, "We said further that we and others are willing to cooperate closely to foster stability in exchange rates around those levels." He referred to a February agreement by six leading industrial nations to cooperate on monetary matters. Baker refused to answer a question whether Japan and Germany had done enough to stimulate their domestic economies for the United States to support the dollar. "I will not comment because the foreign exchange market reads more or less than is intended in my statements," Baker said. Baker said that the other signatories recognized that they must carry their share of the load of correcting external imbalances that have hindered the world's economy. He cited news reports that Germany would increase a proposed tax cut for 1988 by about five billion marks to stimulate domestic growth. Japan also agreed to consider stimulative measures after the Japanese budget was made final. Baker said those nations were stimulating their economies in a manner consistent with gains against inflation.  
EXCHANGE RATE BILL CLEARS U.S. HOUSE PANEL. The House Banking Committee adopted legislation to direct the U.S. Treasury to begin negotiations aimed at seeking regular adjustment of exchange rates by countries such as Taiwan and South Korea whose currencies are pegged to the value of the U.S. dollar. The measure was adopted as part of a wide-ranging trade bill that will be considered by the full House in April before it moves onto the Senate. The bill's many provisions also set as a priority for the U.S. the negotiation of stable exchange rates and urge government intervention as necessary to offset fluctuations.  
TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT TO FOSTER STABLE CURRENCIES.  TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT TO FOSTER STABLE CURRENCIES  
BAKER SAYS HE STANDS BY PARIS CURRENCY AGREEMENT. Treasury Secretary James Baker said he stood by the Paris agreement among leading industrial nations to foster exchange rate stability around current levels. "I would refer you to the Paris agreement which was a recognition the currencies were within ranges broadly consistent with economic fundamentals," Baker told The Cable News Network in an interview. "We were quite satisfied with the agreement in Paris otherwise we would not have been a party too it," he said. Baker also noted the nations agreed in the accord to "co-operate to foster greater exchange rate stability around those levels." He refused to comment directly on the current yen/dollar rate but said flatly that foreign exchange markets recently tended "to draw unwarranted inferences from what I say." Baker was quoted on British Television over the weekend as saying he has no target for the U.S. currency, a statement that triggered this week's renewed decline of the dollar. "I think the Paris agreement represents evidence that international economic policy co-ordination is alive and well," Baker said. The Treasury Secretary stressed however it was very important for the main surplus countries to grow as fast as they could consistent with low inflation to resolve trade imbalances. He added that Federal Reserve Board chairman Paul Volcker has also "been very outspoken" in suggesting main trading partners grow as fast as they can. Baker noted that the J-curve, the delayed beneficial effect of a weakening of a currency on that country's trade balance, takes 12 to 18 months to work its way through to the trade deficit and it is now 18 months since the Plaza agreement to lower the dollar's value. He also said improvements in the trade deficit should come from other sources besides the exchange rate, and pointed out the administration's package to improve U.S. Competitiveness was now before Congress.  
Sumita says major nations will continue to cooperate to stabilize currencies.  Sumita says major nations will continue to cooperate to stabilize currencies  
MIYAZAWA SAYS MAJOR NATIONS ACTING ON PARIS ACCORD. Finance Minister Kiichi Miyazawa said major nations are taking action to stabilise exchange rates in line with their agreement in Paris last month, government sources said. Miyazawa told an Upper House session the six nations -- Britain, Canada, France, Japan, the U.S. And West Germany -- are abiding by the Paris accord. The six agreed to cooperate to stabilise exchange rates at around current levels. Miyazawa said he wishes to attend a meeting of seven major nations (G-7) expected just before the IMF/World Bank Interim Committee meeting in Washington starting on April 9. The sources quoted Miyazawa as saying Japan is trying to prevent a further rise of the yen. Japan is taking the matter seriously, he added. Asked if the six nations had agreed to stabilise the dollar at about 153 yen, the rate prevailing at the time of the Paris talks, Miyazawa declined to give specific figures and said any mention of specific rates would create an "unexpected situation."  
BANK OF FRANCE LAUNCHES MONEY MARKET INTERVENTION TENDER - OFFICIAL.  BANK OF FRANCE LAUNCHES MONEY MARKET INTERVENTION TENDER - OFFICIAL  
U.K. MONEY MARKET LIQUIDITY POSITION EXPECTED FLAT. The Bank of England said it has forecast a flat position in the money market today. Among the main factors, maturing assistance and take-up of treasury bills will drain 545 mln stg and a rise in note circulation 35 mln stg but the outflow will be offset by 490 mln stg exchequer transactions and bankers balances above target 70 mln.  
SHORT-DATED SAUDI RIYAL RATES FIRM IN QUIET MARKET. Short-dated Saudi riyal interest rates firmed but other rates were steady in quiet trading, dealers said. "Day-to-day money is a bit tighter," one trader said. Overnight rose two points to six pct, while most quotes for tomorrow/next and spot/next were 1/2 point higher at around six, 5-1/2 pct. The periods were essentially steady at 5-7/8, 5/8 pct for one month, 6-1/2, 3/8 pct for three, and 6-7/8, 11/16 for six months. The spot riyal stood at 3.7500/05 to the dollar after 3.7506/09 yesterday.  
MONETARY AUTHORITIES SAID TO LOSE CREDIBILITY. The monetary authorities of the major industrialised countries lost their credibility this week as the dollar was sold off despite pleas from ministers and widespread central bank intervention, dealers said. The dollar's fall below 150 yen, which follows last month's Paris currency stabilisation agreement by the U.S., Japan, West Germany, Britain, France and Canada, is a dramatic reversal of the success of the Group of Five (G-5) 1985 New York Plaza meeting to weaken the dollar, they said. The G-5 and the market agreed in 1985 that the dollar was overvalued but this time the market and the authorities are on different sides, dealers said. Apparent confusion in the ranks of the G-5 nations has encouraged the market to challenge the authorities despite concerted intervention by the central banks of the United States, Japan, Britain and West Germany, they said. Pleas by Japanese Finance Minister Kiichi Miyazawa for action to stabilise the dollar were matched over the weekend by comments by U.S. Treasury Secretary James Baker that there was no target zone for the dollar. The dollar was sold anyway. Yesterday's comment by Baker that he stood by the Paris accord did nothing to reverse sentiment, dealers said. The intervention, backed by remarks by Fed Chairman Paul Volcker and Japanese central bank governor Satoshi Sumita, which a few months ago would have brought the dollar fall to a halt, has done little but slow the rate of its decline, they noted. The situation has again raised the question of whether intervention can succeed against the trend in today's huge currency markets. Dealers said the market's cool response to intervention reflected a basic oversupply of dollars. "This means that the current dollar selling is not of a sheer speculative nature but backed by real demand," said Koichi Miyazaki, deputy general manager at Sanwa Bank. Dealers said the dollar will remain weak despite the intervention and it is only a matter of time before some operators try to push it below 148 yen. The dollar closed in Tokyo today at 149.40 against New York's 149.30/40. Its record low was 148.40 in Tokyo last Tuesday. Dealers said the dollar will gain only temporary support to rise above 150 yen toward early April when the Group of Seven industrial nations meets to discuss currencies again. The market expects the seven nations (the Paris six plus Italy) to try to agree on another way to stabilise currencies apart from intervention, a chief dealer at a U.S. Bank said. Dealers said they were unsure what other methods could be used and they are sceptical anyway about how long the Paris accord nations, particulary the U.S., Will remain willing to prevent a further dollar fall given the continuing high U.S. Trade deficit, especially with Japan. Further pressure from a protectionist U.S. Congress for a lower dollar is also limiting Washington's options, they said. The market now thinks the central bank action is to slow the dollar fall, not to push it back over 150 yen, said Tadahiko Nashimoto, manager at Long Term Credit Bank of Japan. Another bearish factor for the dollar is expected large forward dollar sales from April to June for export bills falling due for Japanese exporters from April to September. The exporters had delayed in expectation of a further yen depreciation, dealers said. Yesterday's request to 30 trading houses by the Ministry of International Trade and Industry to restrict dollar sales looks ineffective in light of this real demand, they said. The market is also anticipating active institutional dollar sales to hedge currency risks on bond holdings from the new business year starting April 1, dealers said. "The market seems to have established a new dollar trading range between 147 and 149 yen," one dealer said. The dollar traded between 151 and 153 yen after the Paris accord on February 22 and 150 yen was then considered the low end for the dollar against the yen, he said. Some dealers now believe that if the dollar falls below 148 yen, it will pick up renewed downward momentum and slide to 145.  
U.K. MONEY MARKET FORECAST REVISED TO DEFICIT. The Bank of England said it revised its estimate of today's money market shortfall to around 350 mln stg from a flat position.  
CURRENCY EXCHANGE LOSS PUSHES MALAYSIA'S DEBT UP. An exchange loss of 7.6 billion ringgit in 1986 pushed Malaysia's outstanding external debt up to 50.99 billion ringgit, from 1985's 42.3 billion, the Central Bank said in its annual report. Bank Negara said although Malaysia's net borrowing dropped in 1986, its external debt rose due to the 30 pct appreciation of the basket of currencies against which the ringgit is pegged. The basket comprises principally the U.S. Dollar, yen, mark, Swiss franc, French franc, sterling, guilder, Canadian and Singapore dollars, it added. Bank Negara said growth in external debt, which declined progressively from a peak of 58 pct in 1982 to 13.6 pct in 1985, rose by 20.2 pct in 1986. Malaysia's debt serving ratio of 17.6 pct of its exports in 1986 is within the prudency limit of 20 pct, Bank Negara Governor Jaafar Hussein told reporters.  
TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT. Treasury Secretary James Baker said he stood by the Paris agreement among leading industrial nations to foster exchange rate stability around current levels. "I would refer you to the Paris agreement which was a recognition the currencies were within ranges broadly consistent with economic fundamentals," Baker told The Cable News Network in an interview. "We were quite satisfied with the agreement in Paris otherwise we would not have been a party too it," he said. Baker also noted the nations agreed in the accord to "co-operate to foster greater exchange rate stability around those levels." He refused to comment directly on the current yen/dollar rate but said flatly that foreign exchange markets recently tended "to draw unwarranted inferences from what I say." Baker was quoted on British Television over the weekend as saying he has no target for the U.S. currency, a statement that triggered this week's renewed decline of the dollar. "I think the Paris agreement represents evidence that international economic policy co-ordination is alive and well," Baker said. The Treasury Secretary stressed however it was very important for the main surplus countries to grow as fast as they could consistent with low inflation to resolve trade imbalances. He added that Federal Reserve Board chairman Paul Volcker has also "been very outspoken" in suggesting main trading partners grow as fast as they can.  
U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS.  U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS  
TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES.  TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES  
BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.  BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL  
U.K. MONEY MARKET GETS 25 MLN STG LATE HELP. The Bank of England said it provided about 25 mln stg in late help to the money market, bringing the total assistance today to 266 mln stg. This compares with the bank's revised estimate of a 350 mln stg money market shortfall.  
MULFORD SAYS G-6 WANTS STABILITY. Treasury Assistant Secretary David Mulford said the Paris agreement among leading industrial nations is intended to produce "reasonable stability" in exchange markets over the next few months. He told a Senate Banking subcommittee the Group of Five nations and Canada agreed in Paris to "see if there can't be a period of reasonable stability instead of volatility" to give time for the committments in Paris to take place. Asked by Sen Phil Gramm (R-Tex) whether U.S. intervention was not in fact overvaluing the dollar, Mulford replied that the administration judged that after economic adjustments, current exchange rates reflect underlying economic fundamentals. In particular, the stability sought by the nations would allow West Germany and Japan to stimulate their economies domestically and the U.S. to cut its budget deficit, Mulford said in his testimony. He stressed that a further sharp fall in the dollar would hurt the ability of Germany and Japan to boost growth. Mulford noted that half of West Germany's economy was affected by international developments. He also said increased Japanese domestic growth would result in more U.S. exports to Japan and would not necessarily lead to greater Japanese capital flows to the U.S., as Gramm asserted, if Japan reformed its domestic capital market. Commenting on the Paris agreement, Mulford said, "I think exchange rates ought to be stabilized so (Germany's and Japan's) efforts can be carried out. Mulford rejected Gramm's argument that faster domestic growth in Germany and Japan would result in an even lower dollar. Mulford said the administration wanted to achieve a pattern of higher growth overseas as a way of improving the U.S. trade deficit. Otherwise, he said, the trade deficit would be resolved either through a much lower dollar or a U.S. recession, both alternatives he termed unacceptable and undesirable.  
MULFORD DISAPPOINTED IN NEWLY INDUSTRIALIZED (NICS) EFFORTS TO STRENGTHEN CURRENCIES.  MULFORD DISAPPOINTED IN NEWLY INDUSTRIALIZED (NICS) EFFORTS TO STRENGTHEN CURRENCIES  
GERMAN WAGE ROUND SAID TO LIMIT MONETARY OPTIONS. The Bundesbank's options for West Germany monetary policy are limited for the foreseeable future by the delicate stage of wage negotiations between unions and employers, economists and money market dealers said. Call money fell in quite active trading today, dropping to 3.40/50 pct from 3.55/65 pct yesterday, and below the 3.50 pct treasury bill rate as a difficult month-end approached. But dealers and economists said the Bundesbank was unlikely to encourage lower rates in the foreseeable future largely for fear of upsetting the current wage round. One money market dealer for a major foreign bank said, "I don't think the Bundesbank wants rates to go up whatever happens. But it also does not want them to fall. Above all it wants to wait to see how the unions wage round goes." In West Germany, unions and employers prepare the ground for triennial wage negotiations based on detailed assessments of growth and inflation, economists said. Ute Geipel, economist with Citibank AG, said if the Bundesbank became more accommodating in monetary policy, raising fears in some quarters of a return in inflation in the medium term, unions would be obliged to curtail wage demands. As a result the Bundesbank was concerned to make no move that would interfere in the negotiating process, Geipel said. In the current round, the country's most powerful union, the IG Metall representing metalworkers and engineers, is demanding a shortening of the working week to 35 hours from the present 38-1/2 and an accompanying five pct increase in wages. The engineering employers' association, Gesamtmetall, is offering to bring in a 38-hour-week from July 1, 1988, and give a two stage wage increase -- a 2.7 pct rise from April 1 this year and another 1.5 pct from July 1, 1988. The agreement forged by IG Metall -- Europe's largest union, with 2.5 mln members -- and the employers would set the benchmark for settlements in other industries such as the public sector, banks and federal post office. Negotiations began in December and unions are hopeful they may conclude by early April, ahead of the traditional holiday period in June. Though many economists said the unions' current warning strikes and rhetoric were part of the negotiating strategy and would not lead to a repeat of 1984's damaging seven-week strikes, others said unions would not compromise greatly on their positions and there could still be conflict. This could extend the length of time in which the Bundesbank would keep its activity low-key, economists said. The money market head said the unions' humiliation by the protracted financial problems of the Neue Heimat cooperative housing venture would contribute to union obstinacy. "The unions haven't forgotten that and they will put this squarely onto the account in the negotiations," he said. In addition, the newly-elected chairman of the IG Metall union, Franz Steinkuehler, was more radical and determined than his predecessor Hans Meyer and may be set for a longer battle to achieve the best possible settlement for his membership. More than 16,000 engineering workers at 45 firms, mainly in south Germany, held warning strikes lasting up to two hours yesterday. Firms hit included Zahnradfabrik Passau GmbH and aerospace group Messerschmitt-Boelkow-Blohm GmbH. Today, 28,000 employees from 110 companies came out in warning strikes, a statement from IG Metall said. Money market dealers said that overnight call money rates would rise in the near future in any case and did not depend on a politically-inhibited Bundesbank. About eight billion marks were coming into the market tomorrow from salary payments by the federal government. As a result, some banks fell back on the Bundesbank's offer to mop up liquidity via the sale of three-day treasury bills, anticipating still lower rates before the month-end. But a pension payment date by banks on behalf of customers was due on Monday, other dealers noted. If banks were short of liquidity until the bills matured on Tuesday, rates could soar, perhaps to the 5.50 pct Lombard ceiling. Banks were well stocked up with funds, having an average 52.1 billion marks in Bundesbank minimum reserves in the first 24 days of March, well above the 50.7 billion requirement.  
BRITISH, FRENCH MINISTERS DISCUSS PUBLIC SPENDING. French Finance Minister Edouard Balladur discussed the need to control public spending in talks here today with British Chancellor of the Exchequer Nigel Lawson, a Treasury spokesman said. The spokesman said the ministers reviewed their economies, and public spending, domestic and European Community-wide. He declined to comment on whether the subject of concerted action to shore up the dollar had arisen. The U.S. Currency dipped sharply earlier this week after a month of relative stability after an agreement by six major industrialised nations in Paris on February 22 to stabilise their currencies.  
26-MAR-1987. 26-MAR-1987 
FORMER HERSTATT DEALER CAN BE SUED, COURT RULES. The former chief currency dealer of Herstatt Bank, which collapsed in 1974 on foreign exchange speculation in West Germany's biggest banking crash, can stand trial for damages, a court ruled. The court overturned a claim by Danny Dattel that a case for damages should not be allowed after such a long interval. Herstatt creditors are seeking 12.5 mln marks from Dattel, whom they accuse of causing losses at the bank of over 500 mln marks by manipulating forward foreign exchange contracts. The crash of the private Herstatt bank with losses of over one billion marks stunned West Germany's business community, and led to a tightening of banking regulations. The losses were even greater than the 480 mln marks announced recently by Volkswagen as a result of fraud in currency transactions. Ivan Herstatt, managing director of the bank when it collapsed, was sentenced to four and a half years in prison in 1984 but appealed. Six other people associated with the bank were jailed in 1983. But Dattel was freed from prosecution after he produced medical evidence of paranoia caused by Nazi persecution during his childhood, which might have led him to take his own life.  
U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG. The Bank of England said it forecast a shortage of around 700 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands will drain some 501 mln stg while a rise in note circulation and bankers' balances below target will take out around 285 mln stg and 45 mln stg respectively. Partly offsetting these outflows, exchequer transactions will add some 120 mln stg to the system today.  
BANK OF SPAIN SUSPENDS ASSISTANCE. The Bank of Spain suspended its daily money market assistance obliging borrowers to take funds from the second window, where on Wednesday rates were raised to 16 pct compared with 14 pct for normal overnight funds. Money market sources said in view of high borrower demand the suspension was likely to remain in effect until April 3, the start of the next 10-day accounting period for reserve requirements. The suspension comes after the Bank yesterday gave 1,145 billion pesetas assistance, a record high for this year. It said 90 billion pesetas was provided at the second window.  
U.K. MONEY MARKET GIVEN 265 MLN STG ASSISTANCE. The Bank of England said it provided the money market with 265 mln stg in assistance this morning. This compares with the bank's estimate of the shortage in the system of 750 mln stg, earlier revised up from 700 mln. The central bank purchased bank bills outright comprising 119 mln stg in band one at 9-7/8 pct, 144 mln stg in band two at 9-13/16 pct and two mln stg in band three at 9-3/4 pct.  
BANK OF FRANCE AGAIN BUYING DOLLARS, SOURCES SAY. The Bank of France intervened in the Paris foreign exchange market this morning for the third successive day, banking sources said. Like yesterday, it bought dollars and sold yen in small amounts, they said. One dealer said it was seen in the market twice in early dealing, buying five mln dlrs each time. Other dealers also reported small-scale intervention to stabilise the dollar after aggressive selling overnight in Tokyo, where the Bank of Japan also intervened again. The dollar steadied at around 6.0650/0700 francs after easing in early trading to 6.0615/35 from an opening 6.0700/50. It closed yesterday at 6.0800/30. One major french bank said it bought 10 mln dlrs for the central bank, selling yen, within a trading range of 148.20/30 yen to the dollar, compared with yesterday's 149.28 rate at which intervention was carried out here. The yen later firmed to around 147.90/148.00.  
BUNDESBANK BOUGHT DOLLARS AGAINST YEN, DEALERS SAY. The Bundesbank entered the open market in the late morning to buy dollars against yen in concert with the Bank of France, dealers said. The Bundesbank came into the market when the dollar was around 148.10 yen just after it had fallen below 148 to touch 147.80 at 1027 GMT. The move had little effect, with the dollar still testing 148 yen ahead of the official fixing. Dealers said the intervention was for fairly small amounts, in contrast to the Bundesbank's activity on Wednesday when dealers reported it bought about 100 mln dlrs. The Bundesbank had no comment.  
BANK OF FRANCE BUYS DOLLARS AT PARIS FIXING - DEALERS.  BANK OF FRANCE BUYS DOLLARS AT PARIS FIXING - DEALERS  
U.K. MONEY MARKET GIVEN FURTHER 663 MLN STG HELP. The Bank of England said it gave the money market a further 663 mln stg assistance in the afternoon session. This takes the Bank's total assistance so far today to 928 mln stg and compares with its forecast shortage which it earlier revised up to 850 mln stg from 750 mln. The central bank purchased bills in band one at 9-7/8 pct comprising 267 mln stg bank bills, four mln stg local authority bills and one mln stg treasury bills. It also bought 378 mln stg bank bills and 13 mln stg of treasury bills in band two at 9-13/16 pct.  
AUSTRIA DOES NOT INTERVENE TO SUPPORT DOLLAR. The Austrian National Bank did not intervene on the foreign exchange markets today to support the dollar, deputy banking department chief Herbert Danzinger told Reuters. He denied a suggestion by a dealer at one Vienna bank that the National Bank had sold marks to support the U.S. Currency. Senior dealers at Creditanstalt and Girozentrale, Austria's two largest banks, said they would have been aware of any National Bank intervention. Any dollar purchases by the Bank today were for purely day-to-day purposes, they said.  
TAIWAN TO STUDY SUSPENDING FOREX CONTROLS. Premier Yu Kuo-Hua ordered financial officials to quicken the pace of relaxing foreign exchange controls and study the possibility of suspending the controls, a cabinet statement said. The statement quoted Yu as telling Finance Ministy and Central Bank officials the relaxation was needed to help reduce Taiwan's surging foreign exchange reserves, which reached a record 53 billion U.S. Dollars this month. Finance Minister Robert Chien told reporters his ministry and the Central Bank would work jointly on new measures to ease the controls, but he did not give details. Yu said the government could maintain the framework of the foreign exchange controls while finding ways to ease them. The controls would be used during emergency. Taiwan's reserves have resulted largely from its trade surplus, which hit 15.6 billion dlrs in 1986 and 10.6 billion in 1985. About 95 pct of the surplus was from Taiwan's trade with the United States, according to official figures. But he said that while easing the controls would help reduce the reserves, it would not do so substantially in a short time. Economists and bankers said the new decision resulted from growing pressure from the United States, Taiwan's largest trading partner, which buys almost half the island's exports. Lu Ming-Jen, economic professor at Soochow University, told Reuters: "The decision came a little bit late. But it was better than never." Ko Fei-Lo, Vice President at First Commercial Bank, said the government should rapidly relax its foreign exchange controls and open its market wider to help balance trade with its trading partners, especially the United States. "The liberalisation in both imports and foreign exchange controls will not only help our trading partners, but also help our own economic problems," he said. He said the mounting foreign exchange reserveshelped boost Taiwan's money supply by 48.22 pct in the year to end-February.  
OFFICIAL WANTS ARAB FUND TO HELP LEBANESE POUND. Lebanese central bank Vice Governor Meguerditch Bouldikian called for the establishment of an Arab fund to assist the Lebanese pound, which has lost more than 80 pct of its value against the dollar since January 1986. Bouldikian told an Arab exchange dealers conference the bank would continue to take measures to defend the currency. But he said Lebanon needed foreign support for its war-battered economy now more than ever before. "We expect a common effort between the central bank and Arab central banks and monetary authorities to create an Arab fund to support and preserve the value of the currency when needed," he said. Twelve years of civil war have devastated productive sectors of the Lebanese economy and created gaping trade and budget deficits. Bouldikian said recent government measures had succeeded in reducing demand for imports and increasing exports. "These are encouraging factors, but the war has not ended yet," he said. "We believe that with a just political solution acceptable to all sides, confidence will return and this will benefit the Lebanese pound and Lebanon." In the meantime, he said the central bank had four main goals: 1) to use surplus liquidity to finance the budget deficit 2) to increase the role of commercial banks and non-bank financing institutions in financing the deficit 3) to limit the transfer of Lebanese pounds into foreign currency deposits 4) to protect the financial health of commercial banks.  
CHINA POSTPONES PLAN TO SCRAP PARALLEL CURRENCY. Chinese Vice-Premier Tian Jiyun said plans to scrap the country's parallel currency, Foreign Exchange Certificates (FECs), had been postponed due to objections from foreign businessmen and others. But Tian told a news conference the Chinese government still considered FECs unsatisfactory. Asked about the current state of plans to abolish the FECs, Tian said: "We have decided to postpone the question. As to whether it will be done in the future, it will be done according to the evolution of the situation." He said many people, including foreign businessmen, had raised objections to the plan to abolish the certificates, and added: "It is rather complicated." The FECs were introduced in 1980 for use by foreigners in China. But they now circulate widely among local residents and there is a big black market in the currency, though it is theoretically at par with the ordinary Chinese currency, renminbi. Tian said the government still considered that the FECs had "many demerits and negative influences." Bank of China President Wang Deyan told Reuters earlier this month that he thought it unlikely that the certificates would be scrapped this year. Western diplomats and economists have said the Chinese authorities are having trouble finding a suitable alternative. Vice-Premier Yao Yilin announced at a similar press conference last year that the FECs would be abolished, saying the government had decided it was ideologically unacceptable to have two currencies circulating in China at the same time.  
ARAB BANKER SAYS TOO SOON FOR SINGLE CURRENCY. Gulf Arab states must coordinate economic policies more closely before moving towards their goal of a unified currency system, the President of the Arab Bankers Association said. Hikmat Nashashibi told a news conference at the end of an Arab currency traders meeting: "We have to start with coordination of fiscal policies as a prerequisite for a common system of currencies ... There is quite a substantial way to go yet." He said only then would a unified Gulf currency system be a plausible project. The six nations of the Gulf Cooperation Council -- Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates --  have held a series of meetings this year to examine linking their currencies to a single peg in a system which bankers say could be modelled on the European Monetary System (EMS). At present, five currencies are linked either officially or in practice to the U.S. Dollar, while the Kuwaiti dinar is pegged to a trade-weighted basket of currencies. A common currency system or EMS-style "grid" would, in theory, foster regional trade by providing a basis for stable exchange rates, but Nashashibi said inter-Arab trade is at a very low ebb and capital flows between Gulf states remain small. "Capital markets in the Arab world are still in their infancy," he said. Nashashibi said lack of experience among Arab banks, a paucity of financial instruments and a legal framework that often does not recognise the western banking concept of interest have hampered the growth of Arab markets.  
ITALY RELAXES RESTRICTIONS ON LIRA IMPORTS. Italy is to modify restrictions limiting the amount of lira cash that can be brought in and out of the country, the Foreign Trade Ministry said. A statement said Foreign Trade Minister Rino Formica has signed a measure lifting currency regulations that currently impose a 400,000 lire limit on the value of lira bank notes that can be brought into Italy. It did not say when the new measure would come into force. In future, there will be no limit to the amount of lira bank notes both residents and non-residents can bring into Italy. The statement said the 400,000 lire limit would remain for Italian residents wishing to take cash out of the country, but non-residents could re-export lira cash if they made appropriate declarations at customs points. It said the lifting of the restrictions "reinforces the international status of the lira and meets the requirements expressed several times by foreign exchange dealers."  
ARAB FOREX ASSOCIATION ELECTS NEW CHAIRMAN. The Inter-Arab Cambist Association (ICA) elected Abdullah al-Dakhil of Kuwait's Burgan Bank its new chairman, succeeding Hani Ramadan of Beirut Riyad Bank for a three-year term, ICA officials said The annual meeting elected three Vice-Chairmen -- Ezzedine Saidane of Banque Internationale Arabe de Tunis, Mohammed Osman of Societe Bancaire du Liban and Walid Nasouli of Morgan Guaranty Trust Co of New York. Ibrahim Buhindi of the Saudi National Commercial Bank in Bahrain and Imad Bata of Finance and Credit Corp of Jordan were elected Secretary and Treasurer, respectively.  
JAPAN CAREFULLY CONSIDERING MONEY POLICY -- SUMITA. Bank of Japan governor Satoshi Sumita said the central bank will carefully consider its monetary policy in light of the recent sharp fall of the dollar. Asked if the Bank of Japan will consider a further cut in its discount rate, he said he now thinks the bank will have to carefully consider its future money policy. He told a Lower House Budget Committee in Parliament that credit conditions have been eased by the five discount rate cuts by Japan since the beginning of last year. Japan must now be especially careful about a flare-up in inflation, with money supply growth accelerating, he said. Sumita said the central bank would continue to make a judgement on monetary policies while watching consumer prices, exchange rates and economic and financial conditions both in and outside Japan. Asked if the September 1985 Plaza agreement was a failure because the dollar had fallen too far, Sumita said he still thought the pact was a good one in the sense that it had corrected the overvaluation of the dollar. But the Plaza accord did not set any target for the dollar's fall, he said. The dollar's steep fall stems from the market's belief that the trade imbalance will continue to expand, he said.  
BAHRAIN INTRODUCES NEW MONEY MARKET REGIME. Bahrain is introducing a new domestic money market regime to provide dinar liquidity aid centred on the island's newly launched treasury bill programme. The Bahrain Monetary Agency has issued a circular to all commercial banks outlining a new policy from April 1 which gives liquidity aid through sale and repurchase agreements in treasury bills, or through discounting them. The circular, released officially to Reuters, said current arrangements for providing liquidity aid will no longer be valid except "in quite exceptional circumstances." Under the current system, the agency provides the island's 20 commercial banks with dinar liquidity by means of short-term swaps against U.S. Dollars and, less frequently, by short-term loans secured against government development bonds. "The agency considers that it is now appropriate to replace these operations with short-term assistance based on Government of Bahrain treasury bills," the circular to banks states. The agency said it will repurchase treasury bills with a simultaneous agreement to resell them to the same bank at a higher price which will reflect an interest charge. The agency said it envisages the repurchase agreements will normally be for a period of seven days. Bahrain launched a weekly tender for two mln dinars of 91-day treasury bills in mid-December last year and has since raised a total of 26 mln dinars through the programme. Bahrain's commercial banks are currently liquid and have been making little use of the traditional dollar swaps offered by the agency. But banking sources said the new regime from April 1 will mean banks cannot afford not to hold treasury bills in case they need funds from the central bank. Banking sources said more than half of the 20 banks hold treasury bills, although the need by others to take up paper could increase demand at weekly tenders and push down allotted yields slightly. Last week's yield was six pct, although the programme had started at the end of last year with rates as low as 5.60 pct. Banking sources said the cost of liquidity through repurchase accords will not differ much from that on dollar swaps. But a bank using dollars to obtain liquidity would foresake interest on the U.S. Currency while the underlying treasury bill investment is unaffected in a repurchase accord.  
BANK OF ENGLAND FORECASTS SURPLUS IN MONEY MARKET. The Bank of England said it forecast a liquidity surplus of around 100 mln stg in the money market today. Among the main factors affecting liquidity, exchequer transactions will add some 985 mln stg to the system today while a fall in note circulation and bankers' balances above target will add around 360 mln stg and 110 mln stg respectively. Partly offsetting these inflows, bills for repurchase by the market will drain some 785 mln stg while bills maturing in official hands and the treasury bill take-up will remove about 546 mln stg.  
PHILADELPHIA EXCHANGE TO EXTEND HOURS FOR ASIA. The Philadelphia Stock Exchange (PHLX), a leading trader of currency options, plans to extend its trading hours to serve Australasian and Far Eastern markets, exchange president Nicholas Giordano said. He told reporters the PHLX will open a new session between 1900 and 2300 hours U.S. EST from the beginning of the third quarter this year. The PHLX is also opening an office in Hong Kong to serve clients in the region and educate financial markets about the advantages of currency options, Giordano said. Giordano was in Sydney to start an Asian-Pacific tour by exchange executives promoting the hedging benefits of the exchange-trade currency option market against existing over-the-counter option trading during the local working day. Currency options pioneered by the PHLX in 1982 had become an accepted means of hedging against foreign exchange risk and had grown in popularity, he said. The PHLX now offered options in eight currencies, including a new Australian dollar option, and traded an average 42,000 contracts daily with underlying open interest of more than 30 billion U.S. Dlrs. Giordano said the exchange had been impressed with the performance of its Australian dollar contract, which since its introduction last year had regularly topped the French franc as the third most popular traded option, with up to 8,000 contracts traded daily. Having the Philadelphia exchange open during the Asia-Pacific market day would open new hedging opportunities, set a truer level for over-the-counter option trading, increase arbitraging opportunities and give corporations and treasuries access to a currency option market of much greater depth and liquidity with the security of a clearing house, he said.  
JAPAN CONDUCTS CURRENCY SURVEY OF BIG INVESTORS. A Finance Ministry official said the ministry has recently conducted a survey on foreign exchange transactions by institutional investors but declined to say if it was aimed at moderating their dollar sales. However, financial market sources said they had heard the ministry has asked life insurance and securities firms to refrain from selling dollars, but they were unable to confirm this directly. Dealers said life insurance firms were not major sellers of dollars in recent trading sessions because they had already sold them to hedge risks. Dealers said securities houses and trust banks on the other hand have aggressively sold the dollar.  
BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET. The Bank of England said it had not operated in the money market during the morning session. Earlier, the Bank revised its forecast of the liquidity position to flat from its original estimate of a 100 mln stg surplus.  
ASIAN DOLLAR MARKET ASSETS FALL IN JANUARY. The gross size of the Asian dollar market contracted to 197.2 billion U.S. Dlrs in January, down 3.4 billion dlrs from December, reflecting a decline in interbank activity, the Monetary Authority of Singapore (MAS) said in its latest monthly bulletin. The assets stood at 151.7 billion dlrs in January last year. MAS said interbank lending fell in January to 140.9 billion dlrs from 146.6 billion in December but rose from 102.0 billion in january 1986 and interbank deposits to 154.0 billion against 159.4 and 117.1 billion, respectively. Loans to non-bank customers increased to 40.1 billion dlrs in January from 38.7 billion in December and 36.9 billion in January, 1986. Deposits of non-bank customers also increased in January to 34.9 billion from 33.8 billion a month ago and 27.7 billion a year ago. REUTER  
PHILADELPHIA EXCHANGE TO EXTEND HOURS FOR ASIA. The Philadelphia Stock Exchange (PHLX), a leading trader of currency options, plans to extend its trading hours to serve Australasian and Far Eastern markets, exchange president Nicholas Giordano said. He told reporters the PHLX will open a new session between 1900 and 2300 hours U.S. EST from the beginning of the third quarter this year. The PHLX is also opening an office in Hong Kong to serve clients in the region and educate financial markets about the advantages of currency options, Giordano said. Giordano was in Sydney to start an Asian-Pacific tour by exchange executives promoting the hedging benefits of the exchange-trade currency option market against existing over-the-counter option trading during the local working day. Currency options pioneered by the PHLX in 1982 had become an accepted means of hedging against foreign exchange risk and had grown in popularity, he said. The PHLX now offered options in eight currencies, including a new Australian dollar option, and traded an average 42,000 contracts daily with underlying open interest of more than 30 billion U.S. Dlrs. Giordano said the exchange had been impressed with the performance of its Australian dollar contract, which since its introduction last year had regularly topped the French franc as the third most popular traded option, with up to 8,000 contracts traded daily. Having the Philadelphia exchange open during the Asia-Pacific market day would open new hedging opportunities, set a truer level for over-the-counter option trading, increase arbitraging opportunities and give corporations and treasuries access to a currency option market of much greater depth and liquidity with the security of a clearing house, he said.  
JAPAN CAREFULLY CONSIDERING MONEY POLICY - SUMITA. Bank of Japan governor Satoshi Sumita said the central bank will carefully consider its monetary policy in light of the recent sharp fall of the dollar. Asked if the Bank of Japan will consider a further cut in its discount rate, he said he now thinks the bank will have to carefully consider its future money policy. He told a Lower House Budget Committee in Parliament that credit conditions have been eased by the five discount rate cuts by Japan since the beginning of last year. Japan must now be especially careful about a flare-up in inflation, with money supply growth accelerating, he said. Sumita said the central bank would continue to make a judgement on monetary policies while watching consumer prices, exchange rates and economic and financial conditions both in and outside Japan. Asked if the September 1985 Plaza agreement was a failure because the dollar had fallen too far, Sumita said he still thought the pact was a good one in the sense that it had corrected the overvaluation of the dollar. But the Plaza accord did not set any target for the dollar's fall, he said. The dollar's steep fall stems from the market's belief that the trade imbalance will continue to expand, he said.  
U.K. MONEY MARKET GIVEN 129 MLN STG ASSISTANCE. The Bank of England said it had provided the money market with assistance worth 129 mln stg in the afternoon session. This compares with the Bank's forecast of a shortage in the system today of around 100 mln stg. The central bank purchased 129 mln stg bank bills in band one at 9-7/8 pct.  
JAPAN CONDUCTS CURRENCY SURVEY OF BIG INVESTORS. A Finance Ministry official said the ministry has recently conducted a survey on foreign exchange transactions by institutional investors but declined to say if it was aimed at moderating their dollar sales. However, financial market sources said they had heard the ministry has asked life insurance and securities firms to refrain from selling dollars, but they were unable to confirm this directly. Dealers said life insurance firms were not major sellers of dollars in recent trading sessions because they had already sold them to hedge risks. Dealers said securities houses and trust banks on the other hand have aggressively sold the dollar.  
JAPANESE SEEN LIGHTENING U.S. BOND HOLDINGS. The dollar's tumble to a record low of 144.70 yen in Tokyo today motivated some major Japanese investors to lighten their U.S. Bond inventory further and is expected to spur diversification into investment assets including foreign and domestic shares, dealers said. The key U.S. 7-1/2 pct Treasury bond due 2016 fell to a low of 96.08-12 in early Tokyo trade against the 98.05-06 New York finish, then recovered to 96.20-22. Some trust bank pension fund acccounts and investment trusts were seen selling several hundred million dollars on the foreign exchange market here today, accentuating the unit's tumble, securities house dealers said. They seem undecided on what to do with the fresh yen cash positions resulting from their dollar sales today, and are sidelined until the currency market stabilises and the interest rates outlook clarifies, a Nikko Securities Co Ltd currency trader said. The dollar's plunge and low yields on U.S. Bonds will further promote diversification into other foreign investments, as well as call back funds into the domestic bond and stock markets from overseas bond markets, securities bond managers said. They said major Japanese investors in the past two years are estimated to have held 50 to 80 pct of their foreign portfolios in U.S. Bonds but many have lightened their U.S. Bond inventory to as low as 40 pct. Since late last year, Japanese investors, seeking substantial liquidity and attractive yields, have used fresh funds to buy mark and Canadian dollar bonds and, after the Paris currency pact, actively bought French franc bonds and gilts while gradually lightening U.S. Bond inventories, the managers said. Dealers said funds tied up in foreign assets had flowed into local bond and stock markets as well. The yield of the key 5.1 pct 89th bond dropped to a record low of 4.080 pct today from the 4.140 Saturday finish and compared with 4.25 pct on three-month certificates of deposit. The key bond has fluctuated less than five basis points for more than a month here, suggesting most dealers could not satisfy their needs for capital gains, dealers said. A market survey by Reuters showed some active accounts in U.S. Treasuries are currently dealing on Tokyo's stock market. The stock market's bullishness late last week was partly due to funds transferred from U.S. Treasuries, dealers said. Japanese net purchases of foreign securities in the first half of March fell an estimated one billion dlrs compared with average monthly net purchases of 7.7 billion for the whole of 1986, Finance Ministry sources said. The steep fall is due to Japanese investors' cool attitude towards U.S. Bonds, which had amounted to more than 80 pct of total foreign securities purchased, securities houses managers said. Foreign stock buying in March is expected to exceed the record high of 1.5 billion dlrs seen in December, they said. "Diversification of foreign portfolios is underway and we have bought bonds in currencies such as marks, the Canadian dollar, the ECU and French franc," a fund manager at <Yasuda Trust and Banking Co Ltd> said.  
FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
FED ADDS RESERVES VIA CUSTOMER REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange two billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-3/8 pct when the Fed began its temporary and indirect supply of reserves to the banking system.  
FED WILL BUY BILLS FOR CUSTOMER AFTER AUCTION. The Federal Reserve said it will enter the U.S. Government securities market after the 1300 EST weekly bill auction to purchase around 900 mln dlrs of Treasury bills for customers, a spokesman said. He said the Fed will purchase bills with maturities from May through September 10. Dealers said Federal funds were trading at 6-3/8 pct when the Fed announced the operation.  
PARIS MEET AGREED NOT TO PUBLISH BANDS - LAWSON. U.K. Chancellor of the Exchequer Nigel Lawson said the meeting of six major industrial nations in Paris last month agreed not to publish any bands in connection with their pact to stabilise currencies. Questioned by a parliamentary select committee about why the participating countries had not announced any bands, Lawson replied, "we all agreed it would be much more sensible not to." When asked whether that meant an informal joint currency float with set ranges was arranged in Paris, Lawson said "I do not want to reveal the precise nature of the agreement, so as not to make it easy for" speculation against the accord. Lawson said the Paris accord presumed that individual countries would take corrective action if their currency began reacting significantly to domestic macroeconomic factors. But if such movements were due to extraneous factors, Lawson said the other pact countries would come to its aid through concerted intervention on the foreign exchanges. "It is clear that both Germany and Japan are having difficulty adjusting to their very large exchange rate appreciations and making their economies more domestically oriented, just as it is taking time for the United States to make its own economy more export oriented," Lawson said. In his oral evidence to Parliament's Select Treasury Committee, Lawson repeated that he was happy with the pound's current level, adding that "It is an objective ... To try to keep it around that level." He said the perception of sterling on foreign exchanges had changed since the steep drop in oil prices, largely because the pound had weathered that period so successfully. "There has been a reassessment of sterling's fundamentals," Lawson said.  He disagreed with what he termed "the grossly exaggerated claim" that real U.K. Interest rates were much higher than those of other major industrialsed countries. Using as a reference the key three-month sterling interbank rate as quoted in London, Lawson said Britain now had a real interest rate level of 5.75 pct - the same as Japan did and only a 0.75 percentaage point above the Group of Five average. Lawson confirmed that "over the medium and longer term, the government's objective is zero inflation." He said the government's intention of its PSBR constant at 1.0 pct of GDP "is the modern equivalent of the balanced budget doctrine."  He added that "to allow the debt/GDP ratio to remain constant on anything other than zero inflation basis is simply a recipe for accelerating inflation."  
TREASURY BALANCES AT FED FELL ON MARCH 27. Treasury balances at the Federal Reserve fell on March 27 to 2.424 billion dlrs from 2.508 billion dlrs on the previous business day, the Treasury said in its latest budget statement. Balances in tax and loan note accounts fell to 9.706 billion dlrs from 10.786 billion dlrs on the same respective days. The Treasury's operating cash balance totaled 12.131 billion dlrs on March 27 compared with 13.283 billion dlrs on March 26.  
U.S. CREDIT MARKETS END UNDER EXTREME PRESSURE. The U.S. credit market ended under extreme pressure as the dollar's continued slide on the currency markets triggered an avalanche of U.S. securities sales, pushing prices to 1987 lows, dealers and analysts said. "This was a bloodbath," said one money market economist. "We've been trading in a state of total panic at times today," said another. Mirroring the dollar's fall to a 40-year low against the yen, the key 7-1/2 pct 30-year Treasury bond price fell nearly two points to close at 96-7/32, compared with 98-5/32 on Friday. The corresponding yield jumped to 7.83 pct from 7.66.  
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE. The Bank of England said it had invited an early round of bill offers from the discount houses after forecasting a very large shortage of around 1.75 billion stg in the money market today. MORE  
UK MONEY MARKET GIVEN FURTHER 570 MLN STG HELP. The Bank of England said it provided the market with a further 570 mln stg assistance during the morning after revising its estimate of the liquidity shortage to 1.85 billion stg, before taking account of its early round of bill purchases. Initially, the Bank put the likely shortage at some 1.75 billion and to help offset this gave early assistance of 1.143 billion. Its total help so far today amounts to 1.713 billion stg. MORE  
CALL MONEY PRESSURE FROM LARGE GERMAN BANKS. One or two large West German banks effectively drained the domestic money market of liquidity at the end of the month in order to achieve higher rates from their overnight deposits, money dealers said. As a result, call money soared in active trading to around the Lombard rate of five pct from 3.70/80 pct yesterday as banks found themselves short of minimum reserve funds. Bundesbank figures showed that banks held an average daily 51 billion marks in interest-free minimum reserve assets at the central bank over the first 29 days of the month. Though this was above the March requirement of 50.7 billion, actual holdings at the weekend were 44.2 billion. To meet the daily average, dealers said, banks must raise holdings by two billion marks to 46.3 billion today and tomorrow. But liquidity was tight in early business because banks excessively took up the Bundesbank's offer for sale of Treasury bills on Friday. This provides a rate of 3.50 pct for three-day deposits and is an effective floor to the market. Though some liquidity, from bills bought on Thursday, flowed back into the market today, the bulk would not return until tomorrow, the start of the new month, dealers said. Dealers said the large banks, which they did not name, commanded short-term money requirements of as much as five billion marks or so. With a knowledge of their own needs until the end of the month, the banks bought excessive amounts of treasury bills, draining liquidity for three days. When other banks sought funds, rates rose and large banks were able to place excess funds on deposit at a considerably higher average return. One senior dealer said the Bundesbank, with advanced knowledge of the market's needs, should have curtailed its sales of treasury bills on Friday. Though dealers only late in the day learn of the total minimum reserve holdings of the previous day, the Bundesbank has an immediate overview of the situation and could anticipate the strength of demand for funds the following day, he said. "(Bundesbank dealers) could easily have said we are not selling any treasury bills or we're not selling them in this amount," he said. "If the Bundesbank wants to finely steer the market then they should avoid such excesses. Tomorrow it will be different. Call money will fall back to 4.0 pct or so." But the Bundesbank would not approve of the sharp jump in rates, given the delicate state of currency markets. International central banks have been at pains to prevent a dollar fall against major currencies, including the mark. Dealers said a rise in call money gives the mark a firmer undertone, contributing to downward pressure on the dollar. "The whole tender policy is to have a call money of between three and four pct. In that case the excesses as we have today cannot be very popular," the senior dealer said. Dealers said the large banks probably achieved average rates of return on their excess funds of between 3.75 pct or four pct. This is a higher return than they would have earned without the excessive draining through the treasury bill mechanism. Because of the currency situation and the wage negotiations between Germany's major employers and the unions, the Bundesbank would be very unlikely to make any changes to monetary policy at its council meeting on Thursday, they said. Bundesbank figures showed that banks fell back on the Lombard emergency funding facility to draw down 1.5 billion marks yesterday as rates began to tighten in late business.  
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP. The Bank of England said it had revised its estimate of the deficit in the money market today up to a record two billion stg, before taking account of its morning operations, from 1.85 billion at midday. The Bank has provided the system with around 1.71 billion stg assistance so far today.  
U.K. MONEY MARKET GIVEN 215 MLN STG LATE HELP. The Bank of England said it had provided the money market with late assistance of around 215 mln stg. This takes the bank's total help today to some 2.096 billion stg and compares with its forecast of a two billion stg shortage in the system today.  
U.S. TREASURY'S BAKER SEES RATE STABILITY. Treasury Secretary James Baker said the agreement among the industrial countries reached in Paris last month should foster stability of exchange rates at around current levels. In testimony before the House Appropriations Committee, Baker outlined many of the measures taken designed to achieve more balanced growth and a reduction of trade imbalances during the Paris meeting. "These measures should also foster greater stability of exchange rates around current levels," he said. Baker reiterated that the ministers at the Paris meeting agreed that their currencies were within ranges "broadly consistent with underlying economic fundamentals and that further substantial exchange rate shifts could damage growth and adjustment prospects." He added: "In these circumstances, we agreed to cooperate closely to foster stability of exchange rates around current levels."  
TREASURY'S BAKER SAYS COOPERATION WORKING. Treasury Secretary James Baker said that the agreement in Paris to cooperate in exchange rate changes showed that the process of coordination agreed to at the Tokyo summit was working. He told the House Appropriations Committee the meeting "demonstrated that the process is working." He noted that the industrial surplus countries committed themselves to strengthen their growth prospects while the deficit countries agreed to reduce their domestic imbalances.  Baker said that for its part, Japan announced a cut in its discount rate to 2.5 pct and committed itself to prepare a comprehensive economic program to stimulate domestic demand after the Diet completes action on the current budget. He said the United States must also do its share pressing for reductions in the federal budget deficit through spending cuts. "And we must continue to oppose protectionist pressures," he added.  
TREASURY'S BAKER SAYS U.S. REMAINS PREPARED TO FOSTER EXCHANGE RATE STABILITY.  TREASURY'S BAKER SAYS U.S. REMAINS PREPARED TO FOSTER EXCHANGE RATE STABILITY  
TREASURY'S BAKER SAYS U.S. BACKS STABILITY. Treasury Secretary James Baker said the United States and the five other industrialized nations signing the recent Paris Accord remain committed to fostering the exchange rate at around current levels. But he declined to comment on what he believed to be an appropriate level of the dollar in world markets. "I'm not going to comment on that because invariably the exchange markets read either more or less into my remarks than I might intend," he said in response to a question from the House Appropriations Committee. Baker said the six nations participating in the Paris meeting in February had "acknowledged that the currencies are within ranges that are broadly consistent with the economic fundamentals and we and the others as well remain prepared to cooperate closely to foster stability in exchange rates around those levels."  
BANGEMANN CALLS FOR CURRENCY CALM. West German Economics Minister Martin Bangemann urged a halt to the talking down of the dollar by both official and private institutions in the U.S., Saying calm was needed on the foreign exchanges. Speaking at the opening of the 40th Hanover Industry Fair, Bangemann said radical changes in foreign exchange parities had left their mark on exports and investments. He added that without these external difficulties, West Germany's economy would have grown by 3.5 pct last year instead of the 2.5 pct reported. Bangemann said he could not deny that the economic climate in West Germany had cooled, but he stressed the country was not in a downtrend. The minister also criticised state subsidies, which he said mainly favoured large companies and created a tax burden for smaller and medium sized firms. Bangemann referred specifically to subsidies in the steel industry, which he said had to be fought with all legal means when they did not correspond to European Community guidelines on grants. He added that in light of the declining demand for steel capacities had to be adjusted, saying the Bonn government would not successfully be able to stand in the way of any change in this industry. Bangemann also spoke out against protectionism and called for more competition, citing as an example the Federal Post Office. The Post Office enjoys a monopoly in West Germany, especially as far as deciding who is able to provide telecommunications equipment.  
TREASURY'S BAKER PURSUING S. ASIAN REVALUATIONS. Treasury Secretary James Baker told the House Appropriations Committee the United States is still pressing newly industrialized south Asian nations that have tied their currencies to the dollar to let those currencies strengthen against the dollar. "We have seen some strengthening of those currencies (but) not as much as we would like," he said. "We have been somewhat disappointed in the results so far, but we intend to continue these discussions," he said.  
TREASURY'S BAKER PURSUING S. ASIAN REVALUATIONS. Treasury Secretary James Baker told the House Appropriations Committee the United States is still pressing newly industrialized south Asian nations that have tied their currencies to the dollar to let those currencies strengthen against the U.S. currency. "We have seen some strengthening of those currencies (but) not as much as we would like," he said. "We have been somewhat disappointed in the results so far, but we intend to continue these discussions," he said.  
CURRENCY FUTURES CLIMB LIKELY TO BE CHECKED. The surge in currency futures since Friday on the heels of the Reagan administration's proposed tariffs on Japanese imports is likely to be curtailed in the coming week, financial analysts said. "The market is taking a breather now, and I would expect it to last a little longer," said Craig Sloane, a currency analyst with Smith Barney, Harris, Upham and Co. Profit-taking, which robbed the currency futures of some momentum today, is likely to continue, he said. Central banks are likely to play a role in halting the advance in currencies through intervention, the analysts said, even though the dollar fell to a 40-year low against the Japanese yen on Monday despite Bank of Japan intervention. Treasury Secretary James Baker's comments that the G-6 nations remain committed to the Paris accord, coupled with his refusal to give any targets for exchange rates, provided a note of stability to the market Tuesday, the analysts said. Furthermore, Merrill Lynch Economics analyst David Horner said G-6 central banks haven't yet shown the full force of their commitment to the Paris accord. "I'm among those who believe the G-6 have a plan behind the scenes," Horner said. Horner said more forceful central bank intervention will firm the dollar and cap the rise in currency futures. "Coordinated, punishing intervention" by the central banks -- in contrast to the recent rolling intervention which has only smoothed out the market -- is in the offing, according to Horner. "I think we're near the top of the range in the Europeans (currencies)," he said. On the other hand, the upside target for the yen, which set a new contract high today at 0.006916 in the June contract, is at 0.007050, Horner said. Still, other analysts believe currency futures have yet to peak. "The basic trend in the currencies is higher," said Anne Parker Mills, currency analyst with Shearson Lehman Brothers Inc. "The market wants to take the dollar lower." Uncertainty over central bank action and nervousness over a G-5 meeting next week in advance of a meeting of the International Monetary Fund could make for choppy price activity the remainder of the week, Mills said. In addition, although the market shrugged off relatively healthy gains in February U.S. leading economic indicators and factory orders Tuesday, economic data could play a larger role in coming sessions, the analysts said. Friday's employment statistics in particular will be closely watched, Sloane said, adding that a forecast rise of 250,000 in non-farm payroll jobs should underpin the dollar.  
U.S. FED EXPLORES COMMODITY BASKET INDEX. The complex task of wielding control over monetary policy in an increasingly fast-moving global economy could be aided by tying policy to commodity prices, the newest member of the Federal Reserve Board says. Commodity prices are already considered by the Fed in the making of monetary policy. But they would be given a much greater role under an idea being floated by Governor Robert Heller, who joined the board last August. He conceeds that much more study of the idea is needed, but argues that such an arrangement, particularly if it were adopted by other major industrial countries, could reduce the volatility of exchange rates. Moreover, it could help stabilize of the prices of commodities themselves, slowing changes in inflation. His idea, which many conservative economists find appealing, has some backing among board members appointed in recent years by President Reagan. It would complement the present system of opening or closing the monetary screws based on the pattern of inflation, key indicators such as unemployment, and the rise or fall of the money supply. Changes in the money supply can lead to changes in interest rates and affect economic activity directly. Discussed on and off for a long time, the commodity concept is part of a growing search for a system that anchors monetary policy and widely-fluxtuating currency prices to a more solid base. "What is needed is an anchor or reference point that can serve as a guide for both domestic and international monetary purposes," says Heller. In the past, this anchor was gold but the United States went off the gold standard because the global economy had vastly outstripped gold supplies. A return to the gold standard is generally dismissed out of hand by most policymakers on the grounds that the largest producers of gold are the Soviet Union and South Africa. The so-called fixed rate system, scuttled in the early 1970s, is still considered unworkable in the present world. But the current system of floating currencies in which currencies can fluxtuate widely, adding vast pressures to the monetary system, is also being widely questioned. Some have suggested that the system might benefit from a formal approach that mandates intervention by countries when currencies wander above or below agreed to levels but there are major problems with this also. For one thing, there is justifiable concern that countries might be relunctant to intervene if they felt it might be detrimental to their own domestic economy. Moreover, some question whether concerted intervention can make much of an inpact if the overall market does not agree with the fundamental judgement. The poorest countries have called for a monetary conference to work out a new system that, not surprisingly, helps them cope with their overpowering debt problems. Treasury Secretary James Baker, the Reagan administration's chief economic architect, has preferred to use the so-called Group of Five industrial countries or sometimes, Seven, as a forum to work out cooperative agreements on currency and other economic matters. He appears convinced that officials from West Germany, France, Britain, Japan, Italy and Canada talking quietly behind closed doors can reached reasoned decisions away from public posturing. The Heller approach, while extremely complex, could have a profound impact on the system, ideally stabalizing prices and international exchange rates. As envisioned by Heller, a basket of say, 30 major commodities ranging from wheat to oil, would be put together and prices would be measured on a regular basis. "In times of rising commodity prices, monetary policy might be tightened and in times of falling commodity prices, montary policy might be eased," he says. He notes that commodity prices are traded daily in auction markets, and a commodity price index can be calculated on a virtually continuous basis. Moreover, most commodity prices are produced, consumed and traded on a world-wide basis, so "that an index has a relevance for the entire world," he says. In addition, commodity prices are at the beginning of the production chain and serve as an imput into virtually all production processes. "Focusing on commodity prices as an early and sensitive indicator of current and perhaps also future prices pressures, the monetary authorities may take such an index into account in making their monetary policy decisions," he says. However, he says that any major change in a basic commodity such as occurred in oil during the 1970s because of action by the OPEC cartel, would have to be discounted in such a system. He says the worst thing that could happen is to allow monetary policy to spread a freakish increase in one commodity to the rest of the system and to other commodities.  
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE. The Bank of England said it had invited an early round of bill offers from the discount houses after forecasting a shortage of around 1.2 billion stg in the money market today. Among the main factors affecting liquidity, bills for repurchase by the market will drain some 526 mln stg while bills maturing in official hands and the take-up of treasury bills will remove around 1.79 billion stg. A rise in note circulation will take out a further 105 mln stg. Partly offsetting these outflows, exchequer transactions will add around 1.01 billion stg and bankers' balances above target some 185 mln stg.  
U.K. MONEY MARKET GIVEN 689 MLN STG EARLY HELP. The Bank of England said it had provided the money market with early assistance of 689 mln stg in response to an early round of bill offers from the discount houses. This compares with the Bank's estimate that the system would face a shortage of around 1.2 billion stg today. The central bank made outright purchases of bank bills comprising 347 mln stg in band one at 9-7/8 pct, 207 mln stg in band two at 9-13/16 pct and 135 mln stg in band three at 9-3/4 pct.  
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP. The Bank of England said it had revised its estimate of the shortage in the money market up to 1.3 billion stg from 1.2 billion before taking account of its early operations. The Bank has provided 689 mln stg assistance so far today.  
U.K. MONEY MARKET DEFICIT REVISED DOWNWARDS. The Bank of England said it has revised its estimate of today's shortfall to around 1.25 billion stg from 1.3 billion before taking account of 775 mln stg morning assistance.  
FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER. ACCOUNT, FED SAYS  FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER ACCOUNT, FED SAYS  
FED BUYS ONE BILLION DLRS OF BILLS FOR CUSTOMER. The Federal Reserve is buying one billion dlrs of Treasury bills for customer account for delivery today, a spokesman for the bank said. Fed funds were trading at 6-3/16 pct at the time of the purchase, which came several hours before the Fed normally transacts business for its customers. Economists said the purchase was almost certainly related to the investment of proceeds from recent central bank intervention in the foreign exchanges. The Bank of Japan alone is estimated to have bought about six billion dlrs in March in a bid to prop up the dollar.  
LAWSON WANTS STERLING AROUND 1.60 DLRS, 2.90 MKS. U.K. Chancellor of the Exchequer Nigel Lawson said he wanted sterling to stay roughly where it was, specifying a rate of around 2.90 marks and 1.60 dlrs. He told the National Economic Development Council that the recent Paris meeting of major industrialised nations had agreed on the need for exchange rate stability. There was now a "reasonable alignment of currencies" and the U.K. Government intended to keep sterling at about its present level, he said. That meant around 2.90 marks, which is the single most important rate to concentrate on, and 1.60 dlrs, Lawson said. His disclosure of two of the key targets for sterling was highly unusual, foreign exchange market analysts said. In the past he has preferred to be less definite about the Government's exchange rate policy, lest it give foreign exchange markets set limits to test. Lawson told the committee, which is a tripartite forum of government, unions and industry, that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks. His disclosure of two of the key targets for sterling was highly unusual, foreign exchange market analysts said. In the past he has preferred to be less definite about the Government's exchange rate policy, lest it give foreign exchange markets set limits to test. Lawson told the committee, which is a tripartite forum of government, unions and industry, that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks.  
FED SAYS IT BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER, MAY. THROUGH SEPT 24 MATURITY  FED SAYS IT BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER, MAY THROUGH SEPT 24 MATURITY  
U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG. The Bank of England said it forecast a shortage of around 800 mln stg in the money market today. Among the main factors affecting liquidity, bills for repurchase by the market will drain some 664 mln stg while bills maturing in official hands and the take-up of treasury bills will take out around 508 mln stg and a rise in note circulation some 45 mln stg. Partly offsetting these outflows, exchequer transactions and bankers' balances above target will add some 380 mln stg and 35 mln stg to the system respectively.  
U.K. MONEY MARKET GIVEN 40 MLN STG LATE HELP. The Bank of England said it had provided the money market with around 40 mln stg late assistance. This takes the Bank's total help today to some 537 mln stg and compares with its estimate of a 700 mln stg shortage.  
Lawson says his sterling target comments were misunderstood, and insignificant.  Lawson says his sterling target comments were misunderstood, and insignificant  
LAWSON SAYS HIS STERLING-TARGET COMMENTS WERE MISUNDERSTOOD AND INSIGNIFICANT.  LAWSON SAYS HIS STERLING-TARGET COMMENTS WERE MISUNDERSTOOD AND INSIGNIFICANT  
U.K. MONEY MARKET DEFICIT REVISED UPWARD. The Bank of England said it has revised its estimate of today's shortfall to 750 mln stg from 700 mln.  
STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE. West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next week's International Monetary Fund meeting in Washington that: "The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments." Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germany's exports. Stoltenberg said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. "No-one would benefit if, after years of over-valuation, the U.S. Dollar fell into the other extreme, that is, strong under-valuation," he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord, Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add. Stoltenberg also appeared to suggest that West Germany was now no longer under any pressure from the U.S. Government to stimulate its economy. He declined to respond specifically to a question on this subject but said, "You must attach particular importance to the consensus which was reached in Paris." The minister nevertheless added that he would make clear during his trip to Washington that West Germany's nominal trade figures gave a false impression about actual trade flows. Stoltenberg noted that in 1986 Bonn's exports fell by a nominal two pct while its nominal imports fell by 10.7 pct. West Germany's imports dropped largely because of foreign currency developments and the cheaper price of oil and led to a record trade surplus last year. However, Stoltenberg said that in real terms West Germany's exports by volume had increased by 1.5 pct while real imports had risen by a much stronger 6.2 pct. In this way West Germany had made its contribution to economic stability, Stoltenberg added. Stoltenberg noted the government expected imports to rise by a real four to five pct in 1987 with exports stagnating. He said it was too early to revise official forecasts for West Germany's economic growth this year. The government has forecast an unchanged 2.5 pct rise in Gross National Product. The Kiel Institute, a leading research body, is still expecting growth of three pct but some other research institutes have revised forecasts down to below two pct. Stoltenberg said the wide range of predictions showed how many imponderables had to be taken into account and said no drastic changes in official forecasts were needed.  
U.S. TREASURY POLICIES SAID UNCHANGED BY DEPARTURE. The departure of James Baker's closest aide, Deputy Treasury Secretary Richard Darman, will not change the course of Washington's domestic and international economic policies, U.S. officials said. Darman, who has worked alongside Baker for six years, was widely credited with helping him mastermind initiatives on currency management and international economic cooperation. U.S. Officials said Darman also played a key role in shepherding President Reagan's sweeping tax reform plan through the U.S. Congress. But they flatly dismissed suggestions that his departure, to the investment banking firm of Shearson Lehman Brothers, signaled the Baker team was breaking up, or that the Treasury Secretary himself might leave soon. "It really does not mean that, he took the opportunity as it came up," one official said. Another commented, "Baker will miss him, but he's not going to stand in his way." There has been widespread speculation since last autumn that Darman sought a Wall Street job. Officials said Darman felt the passage of tax reform late last year marked an appropriate moment to bow out. Baker acknowledged Darman would be sorely missed. "Dick Darman has contributed mightily to the success of this administration over the past six years and his departure represents a substantial loss," he said. U.S. Officials admitted Darman's absence would be an undoubted blow to Baker, who has relied on him for policy advice, both at the White House and, in Reagan's second term, at the Treasury. One aide once described Darman as "indispensable" to Baker. Baker is widely thought to want a more stable currency system and Darman is generally credited by officials of other nations as Baker's leading theorist on this issue, favouring target zones to limit currency fluctuations. Earlier this year, monetary sources said the U.S. Treasury unsuccessfully sounded out allies on a target zone system. But a U.S. Official disputed the assessment that, with Darman gone, Baker would abandon international initiatives. Baker's work as head of Reagan's Economic Policy Council, spearheading trade policy, and his skills in negotiating with the Democrat-controlled Congress will go on as before. Darman's strength was not as an economist, but as a political strategist "and that's Baker's strength too," the official said. There were already indications that Baker, who throughout his time in government has relied on a closely-knit circle of advisers, has moved swiftly to find a successor. One possibility is that Baker might turn to George Gould, who holds the number three Treasury position of Under-Secretary. Gould, another close confidante, has known Baker for years. Before joining the Treasury in November 1985, Gould was a partner at the Wall Steet firm of Wertheim and Co and formerly headed Donaldson, Lufkin and Jenrette Securities Corp. The Darman announcement came on the eve of the semi-annual meetings of the International Monetary Fund and the World Bank, where many policies Darman helped shape will be debated. He helped Baker devise the September, 1985 Plaza Agreement, when the United States, Japan, West Germany, France and Britain curbed the dollar's strength. The pact was a major turning point in U.S. Policy, ending a period of disdain for economic cooperation and intervention in currency markets. Darman also worked on some other Baker initiatives, like the Tokyo Summit agreement to intensify coordination of economic policies among the leading industrial countries and the recent Paris Agreement to stabilise currencies and stimulate global growth. These policies are collectively aimed at redressing the huge gap between Japan and West Germany's trade surpluses and the United State's massive trade deficit. That policy goal still remains a prime objective of the Reagan Administration and will not change with Darman's departure.  
EC MINISTERS WILL DISCUSS STRENGTHENING EMS FLOAT. European Community finance ministers and central bankers meet in Belgium this weekend to discuss strengthening Europe's joint currency float amid continuing worries about turbulence on foreign exchanges. Belgian Finance Minister Mark Eyskens, who will host the informal talks, told Reuters the ministers and central bank chiefs would discuss the situation on currency markets in the light of the February agreement among leading industrialised countries to stabilise exchange rates around present levels. In an interview, Eyskens said he felt the Paris accord between the United States, Japan, West Germany, France, Britain and Canada had proved itself "more or less workable." But doubts over its effectiveness and durability have been growing since fears of a trade war between the United States and Japan over computer microchips pushed the dollar to a record low against the surging yen early this week. The talks, at the Belgian resort of Knokke, are being held to coordinate the EC's positions on monetary issues and Third World debt ahead of the Spring meetings of the International Monetary Fund and World Bank in Washington next week. The EC gathering begins tonight with a dinner but the main discussions will take place tomorrow. Continued international currency turbulence could undermine plans for reinforcing the European Monetary System, the joint float holding eight EC currencies within narrow fluctuation bands, which will feature high on the weekend agenda. Eyskens has repeatedly said that Europe needs a period of calm on world currency markets, and in particular a more stable dollar, before it can set about strengthening the EMS to make it more resilient against exchange rate swings. The EMS has been taking a battering over the last year as the falling dollar has sent funds surging into the dominant EMS currency, the West German mark, forcing ministers to undertake two major realignments of parities within nine months. In the interview, Eyskens made clear he was hoping for a wide-ranging discussion on the future of the eight-year-old EMS on the basis of proposals for bolstering it drawn up by the EC's Monetary Committee and the Committee of Central Bank Governors. The committees were asked to come up with the proposals after the last reshuffle of EMS exchange rates in January. Eyskens repeated calls for the European Currency Unit, the fledgling EC currency at the core of the system, to take over the mark's dominant role in the EMS - a proposal that has met with a cool response in West Germany. He said EC Commission President Jacques Delors would report to the meeting on problems raised by plans to liberalise capital movements fully within the 12-nation bloc by 1992, such as the need for harmonising taxes and banking controls. Eyskens said liberalisation of capital movements without strengthening the EMS would be an element of destabilisation in the Community. He said the crucial issue in the debate was whether member states were willing to push further towards the EC's goal of monetary integration on the basis of an EMS that included management of exchange rates by some kind of common institution, instead of by national central banks as at present. Plans for the creation of such an institution, foreseen by the EMS's founding fathers, have been thwarted by the reluctance of some countries, notably West Germany, to gove up their sovereignty in the monetary field. EMS development has also been held up by Britain's refusal so far to join the system's core exchange rate mechanism.  
STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE. West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next week's International Monetary Fund meeting in Washington that: "The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments." Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germany's exports. He said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. "No-one would benefit if, after years of over-valuation, the U.S. Dollar fell into the other extreme, that is, strong under-valuation," he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord, Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add.  
U.S. JOBS DATA SAID TO RULE OUT FED TIGHTENING. A steep drop in goods-producing jobs detracted from U.S. March non-farm payroll employment and makes it unlikely that the Federal Reserve will tighten monetary policy to defend the dollar, economists said. U.S. March non-farm payroll employment rose 164,000, less than the gain of 220,000 to 290,000 the financial markets expected. Manufacturing employment fell 25,000, compared with February's 50,000 gain, while March construction employment dropped 45,000 after being unchanged in February. "The momentum of industrial activity is tapering off as we end the first quarter," said Stephen Roach of Morgan Stanley and Co Inc. "This sets the stage for more sluggish growth in the second and third quarters." "The Fed will view this as a caution flag on the economy," he said. "They will not ease as long the dollar is weak, but clearly they can't tighten." David Wyss of Data Resources Inc said that the downward revision in February non-farm payroll employment to 236,000 from 337,000 means that employment gains in the first quarter were weaker than expected. While Wyss left his first-quarter forecast of real U.S. gross national product growth at 3.5 pct, he said the March jobs data suggested a downward revision in his second-quarter growth forecast to 2.5 pct from 2.8 pct. Bill Sullivan of Dean Witter Reynolds Inc said the average monthly gain in non-farm jobs in the first quarter was only 237,000, compared with 254,000 in the fourth quarter of 1986. "There's momentum in first quarter labor force activity, but less than assumed," he said. "Gains in goods-producing jobs were subdued at best. This rules out any possibilty of the Fed tightening for exchange-related purposes." In March, the average workweek fell back to its January level of 34.8 hours from 35.0 hours in February. Manufacturing hours also fell back to their January level, totalling 40.9 hours in March compared with 41.2 hours in February. The Commerce Department noted that loss of manufacturing jobs in March was concentrated in automobile, electrical and electronic manufacturing. Robert Brusca of Nikko Securities International said that a 13,000 decline in auto manufacturing employment accounted for nearly half of the total drop in manufacturing jobs. Economists said that a build-up in auto inventories resulting from a steep drop in sales has finally caught up with the labor force and may point to slower growth ahead. Most expect an increase in inventories of as much as five pct to offset a steep four to five pct drop in final sales in the first-quarter GNP accounts. Roach said he expects first quarter U.S. GNP to rise two pct, to be followed by a gain of 1.0-1.5 pct at best in the second and third quarters. He said the March drop in industrial activity "is a reasonable response in light of the inordinate contribution inventory accumulation made to GNP." Economists said the employment data also suggest weak gains in industrial production and personal income for March. They expect only marginal gains, if not small declines, for these indicators, compared with a February increases of 0.5 pct in industrial production and 0.9 pct in personal income. Steve Slifer of Lehman Government Securities said the drop in March construction employment may also signal a drop in March housing starts, which rose 2.6 pct in February to 1.851 million units at an annual rate from 1.804 million units in January. The rate of unemployment fell to 6.6 pct, its lowest level since March 1980, from 6.7 pct in February. But Wyss pointed out that this resulted from a drop in the labor force, which fell to 119.2 mln in March from 119.35 mln in February. "This just means that there were fewer people looking for work, so the drop in unemployment doesn't mean much," he said. He said the latest employment report will not concern the Fed because it does points to GNP growth in the first half of 2.5-3.0 pct, but "it does suggest they can't afford to tighten to quickly either." The statistical factors used to smooth out seasonal fluctuations in the jobs data may have understated March labor force gains, just as seasonal factors probably overstated them in January and February, Slifer said, but are consistent with his forecast of 1.8 pct first quarter GNP growth. Economic growth remains sluggish, but Silfer does not think that the Federal Open Market Committee changed policy at their meeting this week. "At some point they will be more inclined to ease," he said. For the time being, however, the March employment report "increases the likelihood they won't tighten, regardless of the dollar."  
LAWSON SAYS U.K. ELECTION NOT ONLY EMS BAR. British Chancellor of the Exchequer Nigel Lawson said the next U.K. Election was not the only element standing in the way of full British membership of the European Monetary System (EMS). But he added that arguments against joining had weakened. Prime Minister Margaret Thatcher, widely believed to be the strongest government opponent of full EMS membership, has made clear she does not expect to consider joining until after the next UK election, due by mid-1988 at the latest. But Lawson, in answer to a question, told reporters after an informal European Community finance ministers' meeting here that other factors apart from the upcoming election stood in the way of full membership. In addition to the question of the exchange rates at which Britain should enter the EMS's core exchange rate mechanism, there was also the impact of sterling membership on the system to be considered, he said. British entry would change the EMS from a monopolar system based on the West German mark to a bipolar mark-sterling system, he noted. "We have to make sure it would work." But Lawson added that some of the considerations that had made it difficult for Britain to join in the past now posed less of a problem. As an example he cited sterling's role as a petrocurrency, which he said was diminishing. "That argument has clearly weakened," he said. Lawson restated that the government was keeping the question of membership under review.  
EC AGREES ON NEED TO STRENGTHEN EMS. European Community (EC) finance ministers and central bankers agreed on the need for greater cooperation to strengthen the European Monetary System (EMS) against international market turbulence, officials said. "There was a general will to reinforce the European Monetary System, with all that implies," Belgian Finance Minister Mark Eyskens said yesterday after hosting a one-day session of informal talks at this Belgian coastal resort. The gathering was the first such discussion since the second major realignment of EMS parities within nine months in January. The system has come under severe strain as funds have flowed out of the slumping dollar and into the dominant EMS currency, the West German mark, sending it soaring against weaker currencies in the system. But Eyskens said February's agreement between leading western industrialised nations to stabilise exchange rates at around current levels was working and this would allow the EC to speed up its efforts to boost the internal stability of the EMS. He told a news conference yesterday's meeting agreed on the need for closer coordination among EMS member governments of interest rate policies and of interest rate differentials between different countries. They also agreed they needed better coordination of exchange market intervention to hold currencies stable, both when they reached their fixed EMS limits and within their agreed margins. But Eyskens said this coordination raised a whole range of technical problems and ministers would discuss these further in Luxembourg in June on the basis of proposals from the EC's Monetary Committee and Committee of Central Bank Governors. He said the EC needed a set of indicators of economic convergence betwen Community countries and it was important that interest rates fulfilled this role together with exchange rates and inflation rates. The Belgian minister, whose country presently holds the presidency of the community, made clear the meeting had not produced any agreement to move radically forward in developing the EMS towards the EC's long term goal of economic and monetary integration. "We have committed ourselves to reestablishing the normal functioning of the system," Eyskens said. Eyskens has repeatedly stressed that he believes the EMS has to be reinforced if the EC's plans to liberalise all movements of capital across national borders by 1992 are to go ahead. EC executive Commission President Jacques Delors told the meeting the authority would put forward proposals for a final phase of capital market liberalisation in October that would include safeguard clauses for member countries for which the move would create difficulties. Eyskens said the ministers and central bankers also discussed the need to "dedramatise" realignments of EMS parities by letting high-ranking monetary officials carry them out by telephone rather than calling a meeting of finance ministers. However, West German sources said Bonn Finance Minister Gerhard Stoltenberg was unenthusiastic about the idea. British Chancellor of the Exchequer Nigel Lawson told journalists that one of the technical issues raised by greater coordination of exchange market intervention was the question of which currencies should be used to intervene and held in central bank reserves. He said several EMS member countries believed the EMS would work better if central banks held each other's currencies -- an issue of particular importance regarding West Germany since the Bundesbank holds only dollars in its foreign exchange reserves. He said the debate on dedramatising EMS realignments reflected a general feeling among participants that the way the January reshuffle had been conducted was unsatisfactory. The realignment was marked by acrimony between France and West Germany, with each side blaming the other for strains in the system that forced the parity overhaul.  
ZAMBIAN CURRENCY FALLS AT FOREIGN EXCHANGE AUCTION. The Zambian currency further depreciated yesterday at the second auction since the introduction of a two-tier foreign exchange system last month. The (central) Bank of Zambia said the kwacha was pegged at 16.99 to the dollar, compared to last week"s rate of 15 to the dollar. The bank, which offered six mln dlrs at the auction, reported demand for 13.4 mln dlrs. At the previous auction, the government offered eight mln dlrs. Last month the government set a fixed exchange rate of nine kwacha per dollar, subject to adjustment against a basket of five currencies, for certain official transactions. It also introduced a new weekly foreign exchange auction only for parastatal organisations and the private sector, where the exchange rate is allowed to float in accordance with market demand. The new auction system is designed to be more restrictive than the previous one, suspended in January after the central bank fell 10 weeks in arrears to successful bidders. Under the new system, no bidder, except the the state oil company Zimoil and the national airline Zambia Airways, is allowed to bid for more than five pct of the foreign exchange on offer.  
U.S. CREDIT MARKET OUTLOOK - CAUTIOUS TRADING. U.S. Bond trading is likely to remain cautious in the near term with a possible downward price bias as market participants focus on trends in the dollar, the economy and Federal Reserve policy, economists said. Most expect the economy to continue showing modest gains, that the dollar has more room to fall and that the Fed will keep policy essentially steady, perhaps for several months. Until trends are clearer, "the market can only attempt to to establish and hold a new trading range at higher interest rates," said economists at Merrill Lynch Capital Markets. Merrill Lynch economists Raymond Stone and Ward McCarthy said that while the fundamentals generally bode for a healthy investment climate, the market will have no confidence in this environment until there is illumination of and confidence in U.S. Dollar/trade policy. Salomon Brothers' Henry Kaufman said the bond market, highly sensitized to dollar movements, could be encouraged if currency markets seem to be stabilizing or if U.S. And overseas economic growth is perceived as slowing sharply. "The crucial question, however, is how soon either of these developments is likely to occur," Kaufman said. "Market uncertainties and the erosion of portfolio manager confidence could continue portfolio selling pressure a while longer," said Philip Braverman, chief economist at Irving Securities Corp. However, Braverman said that, "from a longer term perspective, current (bond) prices provide a buying opportunity." Despite a nearly one-point bond price rebound Friday on unexpectedly weak March employment data, key 30-year Treasury bonds lost 2-1/4 points in price for the week as a whole and Thursday's 7.93 pct closing yield was a 1987 high. Braverman said historical evidence suggests that a long bond yield in the 7.93 pct area provides a basis for optimism. Bonds closed at 7.86 pct on Friday. The Irving economist noted that three times last year, in a similar "paroxysm of pessimism," the key bonds reached a similar closing yield high. Within three to six weeks in each instance, however, Braverman said bond prices recovered to bring the yield down sharply by 63 to 82 basis points. Mitchell Held of Smith Barney, Harris Upham and Co Inc said that many portfolio managers now believe yields could approach nine pct by midyear, which he considers unlikely. Held said that, since late 1986, Smith Barney analysts have spoken about the risk that interest rates could move higher and they continue to believe that an upward bias is likely to persist over the next few months. Held said that in conversations with portfolio managers last week there appeared to be increasing belief that the rate rise had just begun and that yields could approach nine pct by midyear. Naturally, that would mean a sharp bond price fall. "Yields could rise further over the next few months, but the rise should be less than the 65 basis point rise we've seen since the start of the year," Held said. Most expect Fed policy to be neutral for bonds near term. "The Fed is currently frozen into a fixed stance," said economists at Aubrey G. Lanston and Co Inc. They said the Fed cannot tighten policy and push up interest rates as might be appropriate to stabilize the dollar and head off renewed inflationary psychology. That might harm the fragile U.S. Economic expansion. The Lanston economists said, "The Fed cannot ease its policy stance to both foster more rapid economic growth and calm domestic and Third World debt jitters without the threat of causing a further decline in the dollar." Minutes of February's Federal Open Market Committee (FOMC) meeting released Friday showed that while the FOMC left policy unchanged it was more inclined to firm rather than ease policy later if conditions in the economy, foreign exchange or credit markets warranted a policy shift. However, economists generally believe that continued fairly sluggish U.S. Economic growth and the financial strains on U.S. Banks resulting from their problem loans to developing countries rule out any Fed policy firming. There is broad agreement among economists that the FOMC at last Tuesday's meeting also left Fed policy unchanged. This week's U.S. Economic data are expected to have little impact. February consumer instalment credit numbers are due on Wednesday, with March producer price data out Friday. There may be mild relief in some quarters that the U.S. Purchasing Managers Composite Index, a closely-watched economic indicator, rose only to 53.9 pct in March from 51.9 pct. A Friday rumor had put the number far higher. The index's first quarter average also was 53.9 pct, translating into real GNP growth of about three pct if continued through 1987. Federal funds traded at 5-15/16 pct late Friday and are expected to open about there today with no Fed action seen.  
MIYAZAWA SEES BIG NATIONS REAFFIRMING PARIS PACT. Finance Minister Kiichi Miyazawa told a parliamentary committee he expects major nations to reafffirm the currency pact they struck in Paris when they meet this week in Washington, political sources said. The Minister also was quoted as saying he expects major nations to take coordinated action to ensure exchange rate stability. Finance Ministry officials were unavailable for immediate comment. In Paris on February 22, six nations - Britain, Canada, France, Japan, the U.S. And West Germany - pledged to cooperate to hold their currencies stable.  
Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct.  Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct  
BUNDESBANK SETS NEW REPURCHASE TENDER. The Bundesbank set a new tender for a 28-day securities repurchase agreement, offering banks liquidity aid at a fixed bid rate of 3.80 pct, a central bank spokesman said. Banks must make their bids by 1400 GMT today. Funds will be allocated by 0900 GMT tomorrow and credited to accounts later in the day. Banks must repurchase securities pledged on May 6.  
BANK OF JAPAN TO SELL 800 BILLION YEN IN BILLS. The Bank of Japan will sell tomorrow a total of 800 billion yen worth of financing bills from its holdings to help absorb a projected money market surplus of 1,300 billion yen, money traders said. Of the total, 400 billion yen will yield 3.8502 pct on sales from money houses to banks and securities houses in a 41-day repurchase accord maturing on May 19. Another 400 billion yen will yield 3.7991 pct in a 20-day repurchase pact maturing on April 28, they said. The repurchase agreement yields compare with the 3.8125 pct one-month, and 3.7500 pct three-week commercial bill discount rates today. Tomorrow's surplus is attributable to government tax allocations to local governments and public entities. The operation will put outstanding bill supply at about 4,300 billion yen, they said.  
U.K. MONEY MARKET GIVEN 224 MLN STG ASSISTANCE. The Bank of England said it had provided the money market with 224 mln stg help in the morning session. This compares with the Bank's forecast of a shortage in the system today of around 850 mln stg which it earlier revised up from 800 mln. The central bank bought bank bills comprising 27 mln stg in band one at 9-7/8 pct, 21 mln stg in band two at 9-13/16 pct and 171 mln stg in band three at 9-3/4 pct. It also purchased three mln stg of treasury bills and two mln stg of local authority bills in band three at 9-3/4 pct.  
U.K. MONEY MARKET GIVEN FURTHER 284 MLN STG HELP. The Bank of England said it provided the money market with a further 284 mln stg assistance in the afternoon session. This takes the bank's total help so far today to 508 mln stg and compares with its revised estimate of a 900 mln stg shortage in the system which it earlier revised up from 850 mln. The central bank made outright purchases of bank bills comprising 100 mln stg in band one at 9-7/8 pct, 56 mln stg in band two at 9-13/16 pct, 112 mln stg in band three at 9-3/4 pct and 16 mln stg in band four at 9-11/16 pct.  
VOLCKER URGES GREATER EXCHANGE RATE STABILITY. Federal Reserve Board Chairman Paul Volcker said international policymakers should make improving the stability of exchange rates a major priority. In testimony before a Senate Banking subcommittee, Volcker said he does not have any specific proposals for improving exchange rate stability, but thought it was worthy goal. "I do think we ought to be thinking about and working toward greater exchange rate stability," Volcker said. "I think that the objective of greater exchange rate stability ought to loom larger among our various policy priorities."  
ITALY SAYS G-7 GIVES CHANCE TO VERIFY TOKYO ACCORD. This week's Group of Seven (G-7) meeting in Washington provides an opportunity to verify an accord reached at the Tokyo summit last May to include Italy and Canada in Group of Five (G-5) talks on management of the international monetary system and related issues, the Italian Treasury said. It said in a statement the G-7 meeting, which Italy plans to attend, will provide a forum for considering the Tokyo accord in the light of events in Paris in February this year. On February 22, Italy boycotted a meeting in Paris of its G-7 partners - the United States, Japan, West Germany, France, Britain and Canada - after being excluded from an earlier session of talks involving G-5 members. Today's statement from the Italian Treasury said- "Nobody denies the existence of G-5 but we should like it to be remembered that the Tokyo accords provided for the enlargement of the group to Italy and Canada whenever "the management or the improvement of the international monetary economic policy measures are to be discussed or dealt with.'" Italy refused to attend the Paris G-7 meeting on the grounds that G-5, grouping the United States, Japan, West Germany, France and Britain, had reduced Italy's role to rubber stamping agreements already taken. The Italian Treasury said today that Italy was "certain that this time incidents would not occur." But it said it would be opportune to look in depth at the role and the procedures of G-7 in relation to those of G-5.  
VOLCKER SAYS RESTRICTIVE MONETARY POLICY WOULD HURT INVESTMENT.  VOLCKER SAYS RESTRICTIVE MONETARY POLICY WOULD HURT INVESTMENT  
VOLCKER SEES TIGHT POLICY HURTING INVESTMENT. Federal Reserve Board Chairman Paul Volcker said a restrictive monetary policy would be damaging to investment and that a better course would be to restrain spending. "A restrictive monetary policy would hit investment. You don't want to put interest rates up unless you have to," Volcker told the Senate Banking Committee. "That is not a constructive way to proceed," he said. Volcker said that given a choice between squeezing the budget deficit or squeezing investment, he would favor squeezing the budget deficit. In response to a question about banks, Volcker said he would be pleased if Congress decided to give banks a tax writeoff as an incentive for them to take greater reserves against loans to debtor countries. "If you give a tax writeoff for reserving against loans, then we will see more reserving and that would make me happy," Volcker told Committee Chairman Sen William Proxmire (D-Wisc).  
FED SETS TWO-DAY SYSTEM REPURCHASES, FED SAYS.  FED SETS TWO-DAY SYSTEM REPURCHASES, FED SAYS  
FED SETS TWO-DAY SYSTEM REPURCHASES. The Federal Reserve entered the government securities market to arrange two-day repurchase agreements for system account, a spokeswoman for the New York Fed said. Fed funds were trading at 6-1/8 pct at the time of the direct injection of temporary reserves, dealers said. Most economists had expected a less aggressive injection of reserves via customer repurchase agreements.  
7-APR-1987 16:46:14.77. 7-APR-1987 16:46:14.77 
7-APR-1987 17:02:48.51. 7-APR-1987 17:02:48.51 
JAPAN SEEKS TO STRENGTHEN PARIS CURRENCY ACCORD. Japan will seek to strengthen the Paris accord on currency stability at the meeting of the group of seven leading industrial nations tomorrow, Japanese officials said. However, the officials travelling with Japanese Finance Minister Kiichi Miyazawa and who asked not to be identified, would not provide any details of how they wanted the accord, which was signed by the six leading industrial democracies in February, to be strengthened. Currency target zones, or reference ranges, will not be discussed at the G-7 meeting which is scheduled for tomorrow, the Japanese officials said. The meeting, which is being held in conjunction with this week's International Monetary Fund/World Bank sessions, will reaffirm the currency pact and there is no need for changing the language used in the Paris accord, the officials said. Miyazawa met with U.S. Treasury Secretary James Baker early in this afternoon and discussed the dollar/yen exchange rates, officials said, but they declined to disclosed the details of that discussion. The Japanese officials also declined to detail what Miyazawa and Baker discussed on the subject of greater joint intervention in currency markets to stabilize the dollar or on independent American intervention. The officials said such a money market action to stabilize the dollar is not only for the benefit of Japan, which is suffering from a sharp appreciation in its currency, but also for the benefit of the United States as well. As to U.S. urgings for Japan to take steps to boost its domestic demand to reduce its trade surplus, Japan will explain economic measures to the G-7, the officials said. However, Miyazawa failed to outline the size of the Japanese economic package in his meeting with Baker today because the Japanese 1987/88 budget has not been authorized by the Diet, or parliament, despite the new fiscal year which started April one, the officials said. Japan's ruling liberal democratic party revealed its own economic package today calling for more than 5,000 billion yen in additional spending.  
SOUTH KOREAN WON FIXED AT 25-MONTH HIGH. THE BANK OF KOREA SAID IT FIXED THE MIDRATE OF THE WON AT 844.30 TO THE DOLLAR, ITS HIGHEST LEVEL SINCE FEBRUARY 26, 1985, WHEN IT WAS 843.90. THE WON WAS SET at 845.50 YESTERDAY. THE WON HAS RISEN 2.03 PCT AGAINST THE DOLLAR SO FAR THIS YEAR, AFTER RISING 3.34 PCT IN 1986.  
BRAZIL ANTI-INFLATION PLAN LIMPS TO ANNIVERSARY. inflation plan, initially hailed at home and abroad as the saviour of the economy, is limping towards its first anniversary amid soaring prices, widespread shortages and a foreign payments crisis. Announced last February 28 the plan froze prices, fixed the value of the new Cruzado currency and ended widespread indexation of the economy in a bid to halt the country's 250 pct inflation rate. But within a year the plan has all but collapsed. "The situation now is worse than it was. Although there was inflation, at least the economy worked," a leading bank economist said. The crumbling of the plan has been accompanied by a dramatic reversal in the foreign trade account. In 1984 and 1985 Brazil's annual trade surpluses had been sufficient to cover the 12 billion dlrs needed to service its 109 billion dlr foreign debt. For the first nine months of 1986 all seemed to be on target for a repeat, with monthly surpluses averaging one billion dlrs. But as exports were diverted and imports increased to avoid further domestic shortages the trade surplus plunged to 211 mln dlrs in October and since then has averaged under 150 mln.  
JAPAN FEBRUARY INTERIM TRADE SURPLUS JUMPS. Japan's customs-cleared trade surplus in the first 20 days of February jumped to 3.58 billion dlrs from 1.94 billion a year earlier, the Finance Ministry said. The February interim surplus was sharply up from a 965.04 mln dlr surplus in the same January period. FOB exports rose 14.6 pct from a year earlier in the first 20 days of February to 10.91 billion, while CIF imports fell 3.2 pct to 7.33 billion. The average dollar/yen rates were 152.32 for exports and 152.31 for imports against 196.61 for exports and 196.27 for imports a year earlier.  
SWEDEN TO GO AHEAD WITH S. AFRICAN TRADE SANCTIONS. Sweden's ruling Social Democratic Party gave full power to the government to decree unilateral trade sanctions against South Africa, Prime Minister Ingvar Calrsson said. Carlsson told a news conference the party decided the fight against apartheid took priority over Sweden's traditional policy of only adopting sanctions with the backing of the U.N. Security Council. The government will decide later what form the trade boycott will take and when it will come into force.  
JAPAN, U.S. SET TO BEGIN HIGH-LEVEL TRADE TALKS. Japan and the U.S. Kick off top-level trade talks tomorrow amid signs officials from both sides are growing increasingly irritated with each other. The talks, held annually at sub-cabinet level to review the whole gamut of U.S./Japan economic relations, will pave the way for American Secretary of State George Schultz's one day stop-over here at end-week on his way home from China. Faced with growing Congressional protectionist pressure, the U.S. Administration is pressing Japan for speedy action to reduce its still huge trade surplus, U.S. Officials said. "We appreciate their frustration," a senior Japanese government official said. "But we are also frustrated." The official said the 40 pct rise of the yen over the last 18 months has hit Japan hard, forcing exporters to slash spending and lay off workers to make up for lost sales abroad. That has not yet shown up in dollar-based statistics on trade, but it will, he said. He said the U.S. Administration was ignoring the progress that has been made and instead emphasizing the problems that remain when it talks with Congress. "It would only take five minutes to list their accomplishments," a senior U.S. Official replied. The talks begin tomorrow with high-level discussions on the economic structures of both countries and how they affect the bilateral trade imbalance, which last year amounted to 51.48 billion dlrs in Japan's favour. On the following two days, the topics will range from multilateral trade talks under the auspices of the General Agreement on Tariffs and Trade (GATT) to such bilateral trade problems as super computers. The structural talks are intended to be free-wheeling discussions among senior officials. Tomorrow's topics include savings and investment issues such as consumer credit and housing, and the implications of government budget deficits. These talks come at a particularly delicate time for the Japanese government, which is facing increasing domestic pressure to abandon its tight-fisted fiscal policy and stimulate the sagging economy by spending more. Some U.S. Officials complained Japan has no intention of boosting domestic demand and imports, as Washington wants. Japanese officials in turn pointed the finger at the huge U.S. Budget deficit as one of the main culprits for the trade imbalance. That budget deficit has meant that the U.S. Is buying more imports. Japan seems particularly peeved at being singled in a draft trade bill before the Senate as a nation following adverserial trade practices. "It condemns Japan without due process," one Japanese official said. That reference spoils what is otherwise a well-thought-out bill introduced by Democratic Senator Lloyd Bentsen, he said. Japan is also not totally happy with the administration's trade bill, particularly its proposal to establish reciprocal access to foreign markets as one criteria for retaliatory trade action by the U.S., Officials said. Nevertheless, Japanese officials said they remain in a weak bargaining position, especially with the threat of a trade bill overhanging them. "We have no leverage," one official admitted. As a result, Tokyo is striving to meet U.S. Complaints about its trade practices in a variety of fields, including super computers. The U.S. Is pressing for greater access to the Japanese super computer market. The Japanese government has sent a long questionnaire to public institutions like universities which buy the sophisticated machines in hopes of eventually setting up informal bidding procedures easily understood by all potential sellers, officials said.  
TAIWAN PLANS NEW TARIFF CUTS. Taiwan plans another round of deep tariff cuts this year to help narrow its trade surplus with the U.S., A senior economic planner said. Wang Chao-Ming, vice-chairman of the council for economic planning and development, told Reuters Taiwan would further reduce import tariffs on 1,700 products sometime in the second half of this year. Cuts of up to 50 pct on those items were made last year and Wang said further cuts would go much deeper. "We have to speed up liberalisation and cut import tariffs faster and more substantially," he said. The United States, Taiwan's main trading partner, has said the island's import tariffs, still ranging from a high of almost 60 pct, were unacceptable. It has criticised the cuts as too selective. Taiwan's trade surplus with the United States hit 13.6 billion dlrs last year. The surplus has boosted foreign exchange reserves to 50 billion dlrs, which Wang said made Taiwan a target for U.S. Protectionism. Wang said the trade surplus and the reserves weakened Taiwan's position in talks with Washington over export quotas, particularly for shoes, textiles and machine tools which are among the island's main export-earners. A special Taiwanese trade delegation leaves for Washington tomorrow to try to renegotiate an agreement signed last year limiting exports of Taiwan textiles. Under the accord, Taiwan's textile export growth was limited to 0.5 pct each year until 1988. Taipei has said it is losing markets to South Korea and Hong Kong which were given more generous terms. REUTER...  
TALKS SHOW NEW CANADIAN CONFIDENCE, GROUP SAYS. Canada's decision to raise the issue of a free trade pact with the U.S. was a sign of what many see as a new spirit of Canadian self-confidence, a public policy study group said "It suggests the Canada of the immediate post-war period, when it was a major player in the process of building a postwar world," the Washington-based Atlantic Council said. U.S. and Canadian negotiators opened talks last summer aimed at dismantling trade barriers between the two countries, the world's biggest trading partners with crossborder shipments of about 150 billion dlrs annually. The council's study said the trade talks, with a deadline of October for an agreement, are the biggest issue in U.S.-Canadian relations. The study said liberalized trade between the two countries would improve the competitiveness of their economies in world markets and lessen trade irritants which now mar their ties. The council said "in the past most Canadians have shied away from the notion of a free-trade arrangement, fearing to be overwhelmed economically and politically by a closer association with a country 10 times their size in population." But at the same time, it added, Canadians realized their domestic market was too small to permit the mass production and sales needed to raise productivity to the level demanded by an increasingly competitive world. The council said that in the talks, Canada is chiefly interested in minimizing the imposing of U.S. duties against allegedly subsidized exports. A recent example was the 15 per cent duty the U.S. imposed on Canadian lumber exports on grounds the shipments were being subsidized. The council said the chief U.S. concerns included ending curbs against U.S. banking, insurance, telecommunications, and the so-called "cultural industries" - publishing, broadcasting and films. It said other major U.S.-Canadian issues were defense cooperation, "acid rain" and the U.S. rejection of a Canadian assertion of sovereignty over waters of the Northwest Passage.  
JAPAN MOVES TO TIGHTEN CHIP-EXPORT CURBS. The Ministry of International Trade and Industry (MITI) acted to tighten restrictions on microchip exports to countries other than the U.S. To preserve a U.S.-Japan pact on semiconductor trade, but major Japanese chipmakers doubt its usefulness. A MITI spokesman said his ministry had asked chipmakers to issue certificates to specified trading houses stating they are authorised exporters. Trading houses applying for a MITI export licence will be required to show such a certificate, but those without it will not automatically be denied licences, he said. But some industry officials predicted any government measures were likely to have limited effect as long as the world semiconductor market remained weak. U.S. Government and industry officials have complained repeatedly that Japanese chipmakers continue to sell at below cost to third countries despite the July agreement. Japanese firms and officials in turn argue the flow of cheap chips to third countries is due to grey-market sales by third-party brokers, who seek to profit from the gap between low prices in Japan and higher prices based on production costs and set for Japanese makers under the agreement. The MITI spokesman said, "If the percentage of grey market is increasing for one specific company, it suggests they are distributing their products through their sales network knowing they will be exported by some means. In that case we will ask them what they are doing to reduce the figure." MITI earlier asked makers to cut output of certain chips by 10 pct in first-quarter 1987, spokesmen for the firms said. But they doubt the usefulness of the latest move. "As long as there is a gap between prices set under the pact and market prices, there will be people who want to exploit the gap to make money," a Hitachi Ltd <HIT.T> spokesman said.  
SWISS CAPITAL EXPORTS RISE IN JANUARY. Swiss capital exports rose to 4.64 billion francs in January after 2.54 billion in December and a year earlier 3.64 billion, the Swiss National Bank said. New bond issues accounted for 4.12 billion of the total after December's 2.15 billion, and credits 525.1 mln after 389.9 mln. In January 1985, before the National Bank ended the distinction between notes and bonds, bond issues totalled 1.66 billion francs, notes 1.39 billion and credits 597.5 mln.  
CHINA CALLS FOR BETTER TRADE DEAL WITH U.S.. China called on the United States to remove curbs on its exports, to give it favourable trading status and ease restrictions on exports of high technology. But the U.S. Embassy replied that Chinese figures showing 13 years of trade deficits with the U.S. Out of the last 15 are inaccurate and said Peking itself would have to persuade Congress to change laws which limit its exports. The official International Business newspaper today published China's demands in a  editorial to coincide with the visit of U.S. Secretary of State George Shultz. "It is extremely important that the U.S. Market reduce its restrictions on Chinese imports, provide the needed facilities for them and businessmen from both sides help to expand Chinese exports," the editorial said. "The U.S. Should quickly discard its prejudice against favourable tariff treatment for Chinese goods and admit China into the Generalised System of Preference (GSP). "Despite easing of curbs on U.S. Technology exports in recent years, control of them is still extremely strict and influences normal trade between the two countries," it added The paper also printed an article by China's commercial counsellor in its Washington embassy, Chen Shibiao, who said that "all kinds of difficulties and restrictions" were preventing bilateral trade fulfilling its full potential. He named them as U.S. Protectionist behaviour, curbs on technology transfer and out-of-date trade legislation. The paper also printed a table showing that, since bilateral trade began in 1972, China has had a deficit every year except 1972 and 1977. It shows the 1986 and 1985 deficits at 2.09 billion and 1.722 billion dlrs. A U.S. Embassy official said the U.S. Did not accept Peking's trade figures at all, mainly because they exclude goods shipped to Hong Kong and then trans-shipped to U.S. While U.S. Figures are based on country of origin. He said that, if China wants to obtain GSP status, it will have to lobby Congress itself to persaude it to amend several laws which currently prevent Peking getting such status. The U.S. Trade Act of 1974 says that to qualify for GSP, China must be a member of the General Agreement of Tariffs and Trade (GATT), for which it applied in July 1986, and "not be dominated or controlled by international Communism." The official said China was well aware of the laws, some of which date to the anti-Communist early 1950's, but that there is not sufficient political will in the U.S. To change them. China has been the subject of about a dozen cases involving anti-dumping in the U.S. Within the last two years, which the U.S. Side won, he said. But, for the first time, China signed last week an agreement which it itself initiated to voluntarily restrain exports of at least two categories of steel goods, which may lead the U.S. Side to withdraw the anti-dumping case, he added. Another diplomat said willingness to provide such voluntary export restraints would be an important issue in bilateral trade issues and in Peking's application to GATT. "China has the potential to disrupt world markets, especially in textiles. Other GATT countries will be nervous about China in this respect. But there is a precedent for other centralled planned economies in GATT," the diplomat said. Poland, Czechoslovakia, Hungary and Romania are members of GATT but none has China's massive market potential for imports or its vast labour pool to produce cheap exports. In a speech today in the northeast city of Dalian, U.S. Secretary of State George Shultz said his country welcomed China's interest in participating in GATT. "The process of Chinese accession will not be accomplished overnight -- the GATT rules were not designed for a large economy of the Chinese type," Shultz said. "China can play an important role by actively joining GATT discussions seeking to expand general trading opportunities and enhance market access for exports worldwide. China can further develop its foreign trade system so as to gain the maximum benefit from its GATT participation," he said. The problems facing U.S.-China trade and GATT membership are similar -- a pricing system which many foreign businessmen regard as arbitrary and not related to actual costs, especially for exports, and a de facto dual currency system. In a memorandum backing its application presented to GATT last month, China said it was gradually reforming its economic system and replacing mandatory instruction with "guidance planning" and economic levers. The diplomat said that, to join GATT, China had much to do.  
U.S. ASKS JAPAN END AGRICULTURE IMPORT CONTROLS. The U.S. Wants Japan to eliminate import controls on agricultural products within three years, visiting U.S. Under-Secretary of State for Economic Affairs Allen Wallis told Eishiro Saito, Chairman of the Federation of Economic Organisations (Keidanren), a spokesman for Keidanren said. The spokesman quoted Wallis as saying drastic measures would be needed to stave off protectionist legislation by Congress. Wallis, who is attending a sub-cabinet-level bilateral trade meeting, made the remark yesterday in talks with Saito. Wallis was quoted as saying the Reagan Administration wants Japanese cooperation so the White House can ensure any U.S. Trade bill is a moderate one, rather than containing retaliatory measures or antagonising any particular country. He was also quoted as saying the U.S. Would be pleased were Japan to halve restrictions on agricultural imports within five years if the country cannot cope with abolition within three, the spokesman said. Japan currently restricts imports of 22 agricultural products. A ban on rice imports triggered recent U.S. Complaints about Japan's agricultural policy.  
CHINA CALLS FOR BETTER TRADE DEAL WITH U.S.. China called on the United States to remove curbs on its exports, to give it favourable trading status and ease restrictions on exports of high technology. But the U.S. Embassy replied that Chinese figures showing 13 years of trade deficits with the U.S. Out of the last 15 are inaccurate and said Peking itself would have to persuade Congress to change laws which limit its exports. The official International Business newspaper today published China's demands in a  editorial to coincide with the visit of U.S. Secretary of State George Shultz. "It is extremely important that the U.S. Market reduce its restrictions on Chinese imports, provide the needed facilities for them and businessmen from both sides help to expand Chinese exports," the editorial said. "The U.S. Should quickly discard its prejudice against favourable tariff treatment for Chinese goods and admit China into the Generalised System of Preference (GSP). "Despite easing of curbs on U.S. Technology exports in recent years, control of them is still extremely strict and influences normal trade between the two countries," it added. The paper also printed an article by China's commercial counsellor in its Washington embassy, Chen Shibiao, who said that "all kinds of difficulties and restrictions" were preventing bilateral trade fulfilling its full potential. He named them as U.S. Protectionist behaviour, curbs on technology transfer and out-of-date trade legislation.  
BELGIAN SAYS EC WOULD REACT TO TEXTILE BILL. Belgian Foreign Trade Minister Herman De Croo said if Congress passed legislation curbing world textile imports the only way the European Community (EC) could react was to retaliate. De Croo said at a news conference "if you limit textile imports, you will re-orient textiles to Europe." And that he said would trigger EC taxes on U.S. goods. Congress passed a textile bill two years ago, but it was vetoed by President Reagan on grounds that curbing imports to protect the domestic textile industry would trigger retaliation U.S. trading partners. A similar bill has been introducted this year, in a Congress with a bigger Democratic majority and with a President weakened by the Iran scandal. De Croo, here for talks with Administration officials and Congressmen, said if a textile bill passed, "the only way we could react would be retaliation, and it would cause more retaliation, which is not a good way to deal with problems." He said if a textile bill was enacted, "we will impose taxes on a lot of American products."  He said "it would be stupid. We have to avoid that." He said Congressmen seem upset mosty with Japan, because of its massive trade suprlus with the United States, and not with EC nations, but EC nations will be hurt by the diverted shipments of Asian textiles. De Croo also criticized the way U.S. officials try to solve EC trade issues, saying "each time we come in contact, it a conflict contact. The clouts are coming fom the West." He said it then is a crisis atmosphere with officials cross the Atlantic and dramatized with headlines. "This is not the way to work in a serious way between two big powers," De Croo said.  
ROSTENKOWSKI OPPOSES PROTECTIONIST TRADE BILL. House Ways and Means Committee Chairman Dan Rostenkowski said Congress must avoid a temptation to pass a protectionist trade bill this year. In remarks prepared for delivery before the National Press Club, Rostenkowski, D-Ill., predicted major trade legislation will be sent to President Reagan by the end of this year. But he warned that his "conciliatory message" on the trade bill did not mean he would oppose a proposal that would warn other countries their access to the American market would be curtailed unless they opened their markets to U.S. goods. "Complaints about (foreign trade) restraints are not a smoke screen for protectionism, they a plea for fairness," Rostenkowski said. "It is only reasonable to ask the nations that have denied us access to open up in return for continued freedom in the American market," he added. However, he said there would likely be changes in the market access proposal from the plan which cleared the House last year. That plan would have set a specific time table for foreign countries to ease import restraints or they would face a 25 pct cut in exports to the United States.  
U.K. EXPORTS BODY GETS NEW EXECUTIVE DIRECTOR. Export Credits Guarantee Department has named Malcolm Stephens, director of export finance at Barclay's Bank Plc and a former career civil servant at ECGD for 17 years, to the post of executive director, a department spokesman said. Stephens replaces Jack Gill, who is retiring early aged 57. A drop in the ECGD's business volume and a rise in its debt to the Exchequer have led to criticism in Parliament in recent years. Stephens said the fall in business volume was a top convern, adding that the department may have to compete more aggressively with private insurance firms providing similar services. The department's annual report for the year ended March 31, 1986, showed exports insured by the department fell to 15.7 billion stg from 17.4 billion the year before, while its debt to the Exchequer almost doubled to 756 mln stg. Stephens said he had no specific list of changes. But among his chief concerns was the weakened condition of lesser developed countries and their ability to pay for their imports. The agency will have to review its policies on insuring export credits to lesser credits on a country by country basis, he said. "Large lump political risk insurance is the sort of thing we want to take a look at." "You have to try to look forward to see if you are simply in a peak and trough situation or it is a more long term thing," Stephens said, in response to a qustion about whether ECGD will strike more countries from its list of political risk insurance recipients. He noted that certain countries have already been removed from the list.  
ROSTENKOWSKI RELUCTANT TO BACK TAX HIKE. House Ways and Means Committee Chairman Dan Rostenkowski said he would be reluctant to back the tax increase if it did not have President Reagan's support. He told a National Press Club luncheon there would be a number of tax proposals that could be debated if Reagan sought a tax increase to help balance the budget. However, he said he would prefer to leave the tax rates enacted in last year's tax reform bill unchanged. There have been calls in Congress to hold the rates at the 1987 level rather than allow them to fall next year. Reagan proposed 22 billion dlrs in revenue as part of his 1988 budget proposal, but it did not include general tax increases. On trade issues, Rostenkowski said he did not expect the major trade bill this year would single out any U.S. industry for special protection. "To go after individual items in a trade bill is suicide," he said. This apparently ruled out congressional approval of another textile trade bill to limit quotas on textile imports, as was proposed again this year.  
U.S. WINE EXPORTS ROSE 15 PER CENT LAST YEAR. Exports of American wine rose 14.9 per cent last year to a total of 7.2 million gallons, the Wine Institute said. The San Francisco-based promotional group said 95 per cent of the exported wine was from California and the top three markets were Canada, Japan and Britain. Japan, which edged out Britain as the leading importer of American wines in 1985, continued in second place. Canadian imports rose 3.2 per cent to 2.6 million gallons; Japan, 9.9 per cent to 1.2 million gallons, and Britain, 20.2 per cent to 962,360 gallons. A spokesman for the institute said the declining value of the dollar and strong promotional efforts on the part of the California wine industry contributed significantly to the increased shipments. The 1986 wine exports were valued at 34.7 mln dlrs, up from 27.6 mln dlrs the previous year.  
U.S. SENATE PANEL COULD CONSIDER TRADE MEASURE. The U.S. Senate Agriculture Committee may take up a bill tomorrow that would strengthen the activities of U.S. agricultural trade teams in selected developing countries, committee staff said. The measure, sponsored by committee Chairman Patrick Leahy (D-Vt.) and Sen. John Melcher (D-Mont.), would establish trade teams of between six and nine persons drawn from federal agencies and private voluntary organizations, staff said. The trade missions would seek to generate interest in the U.S. government's food donation and commercial programs -- PL480, Section 416, export credit and export enhancement -- and upon return be required to advocate extension of concessional or commercial benefits to interested countries. The trade teams would be made up of representatives of the U.S. Agriculture Department, State Department, the Agency for International Development and private voluntary organizations such as U.S. Wheat Associates. The bill would require teams within six months to visit seven countries: Mexico, Philippines, Indonesia, India, Bangladesh, Senegal and Nigeria. Within one year after passage of the measure, another eight countries would have to be visited: Peru, Kenya, the Dominican Republic, Costa Rica, Malaysia, Venezuela, Tunisia and Morocco. Other countries could be added to the list. Senate staff members said the bill, still in the drafting stages, had broad support and was expected to be approved by the committee tomorrow.  
SPAIN TO LAUNCH EXPORT DRIVE. Spain unveils a 105 billion peseta plan this month aimed at boosting exports to reach European Community levels, director-general of the INFE export institute, Apolonio Ruiz Ligero, said. "The target is to raise exports to 20 pct of Gross Domestic Product over the next four years compared to 15 pct now," he said. "This is the minimum prevailing level in the EC and there is no reason why we should lag behind countries like Italy, which have a similar productive structure," he said. The plan calls for providing soft loans, tax cuts and other fiscal benefits to exporters and raising Spain's presence in international trade fairs. Consumer goods such as fashion and wine, as well as traditional industrial exports will be promoted. Ruiz Ligero said INFE would double its annual budget to 20 billion pesetas to finance the four-year plan, while the government's development aid fund (FAD) would provide a special 25 billion peseta grant. The plan calls for boosting exports by five to six pct in real terms this year after a 7.4 pct decline last year. Ruiz Ligero attributed this drop to a lack of demand in developing countries and a rally in domestic consumer demand, which rose six pct last year after 1.9 pct in 1985. He added that 80 pct of Spain's exports went to Organisation for Economic Cooperation and Development (OECD) countries. The EC accounts for 60 pct of the market and exports to the Community rose seven pct last year. The government plans to concentrate efforts on Western Europe and the U.S. "The problem is convincing businessmen that exports are vital to survival in the context of EC competition," he said. He said Spanish businessmen traditionally turned to the domestic market to satisfy rises in consumer demand, while turning their backs on foreign markets. "They have to realise their share of the home market is going to shrink with growing deregulation," he said. "Foreign companies are taking up positions in the domestic economy and it is it vital to secure a market share abroad."  
BALDRIGE CONCERNED ABOUT KOREAN/TAIWAN DEFICITS. Secretary of Commerce Malcolm Baldrige expressed concern about the continuing U.S. trade deficits with South Korea and Taiwan and said that without an adjustment in exchange rates there is little likelihood of improvement. Speaking to the President's Export Council, an industry advisory group, Baldrige said the trade deficit issue was under discussion with those countries. "I feel that unless we see an exchange rate adjustment we probably won't be able to see much of a change in the large surplus that Taiwan in particular has with us," he said. In a wide-ranging discussion on U.S. trade matters, Baldrige also repeated U.S. concern about an attempted takeover by Japan's Fujitsu company of Fairchild Computer. He said that the Japanese were resisting allowing U.S. companies into the giant computer business while at the same time attempting to acquire control of a U.S. company that does major computer business in the U.S. market. Lastly, Baldrige said that the United States was hopeful that it could complete a free market agreement with Canada by the autumn, but said major issues, including acid rain, remained unresolved.  
EC APPOINTS NEW TRADE CHIEF. The European Community Commission today appointed its chief spokesman, Hugo Paemen, as its top official in charge of multilateral trade negotiations, a Commission spokesman said. Paemen, a Belgian official who had previously been chief aide to former External Affairs Commissioner Etienne Davignon, has been in his post since January 1985. The spokesman said Paemen will continue as chief spokesman until the retirement on May 1 of Paul Luyten, who is now in charge of EC departments handling negotiations in the world trade body GATT, the OECD and other forums.  
S. KOREAN TRADE SURPLUS WITH U.S. SEEN FALLING. South Korea's record 7.1 billion dlrs trade surplus with the U.S. is bound to diminish as the country switches purchases from Japan in favor of U.S. companies, Trade Minister Woong-Bae Rha said. He rejected suggestions the Korean Won is undervalued, and denied any plans for a "drastic and sudden" revaluation. Rha is heading a trade mission to 37 U.S. cities. Last year South Korea ran a 4.3 billion dlr trade surplus, including a record 7.1 billion surplus with the U.S. and a 5.5 billion dlr deficit with Japan. Rha told Reuters in an interview the current trade mission is looking for 2.0 billion dlrs in purchases from U.S. companies, about a quarter of which represents "transferred purchases from Japanese sources." Rha said the items being sought by the current mission are "mainly chemicals, machinery and parts." He said South Korea is the fourth largest importer of U.S. agricultural products. The current mission is not involved in that area but there are plans to buy "substantial amounts of cotton" from the U.S. He noted his country "is clearly not as open as the American market. Nor is it reasonable to expect that it should be," considering South Korea has a 40 billion dlr foreign debt and spends six pct of its gross national product on defense.  
GATT COUNCIL DEFERS DECISION ON SEMICONDUCTORS. The ruling GATT Council deferred a decision on whether to set up a dispute panel on the basis of a European Community complaint against the U.S.- Japanese agreement on exports of computer semiconductors. David Woods, spokesman of the General Agreement on Tariffs and Trade (GATT), told a news briefing that the main parties would continue bilateral talks. This was in the hope of resolving the row before the next Council meeting on April 15. The five-year accord signed in July 1986 aims to protect the U.S. Market from dumping of low-price Japanese microchips, officially known as semiconductors. The E.C. Complained the accord breached GATT trade rules by allowing Tokyo to monitor prices, allowing it to set minimum prices for Japanese chips sold in third countries. The 12-nation Community also charged the agreement gave U.S. Producers preferential access to the Japanese market. Woods said many nations -- Hong Kong, Canada, Switzerland, Singapore, Sweden, Malaysia and Nigeria -- had supported the EC complaint during the heated Council debate. Japan's delegate, Minoru Endo, and U.S. Ambassador Michael Samuels replied in the debate that the E.C. Charges were unfounded, but they were willing to continue bilateral talks.  
GATT SETS UP DISPUTE PANEL ON CANADIAN HERRING. The ruling GATT Council set up a formal dispute panel to examine a U.S. Complaint that a Canadian law prohibiting export of unprocessed herring and salmon was discriminatory. David Wood, official spokesman of the General Agreement on Tariffs and Trade (GATT), told a news briefing the decision was taken after bilateral consultations failed to resolve the row. U.S. Ambassador Michael Samuels charged during the Council debate that Canada was trying to preserve domestic jobs by insisting that herring and salmon be processed at home. Robert White, Canada's deputy chief of delegation, replied the law was in line with GATT rules, and was for conservations reasons. But he agreed to setting up the dispute panel.  
BRITISH AIDE CRITICIZES U.S.PROTECTIONISM. A senior British official said that protectionist bills being considered by Congress could trigger retaliation by the European Community (EEC) and threaten the global trading system. Paul Channon, secretary for trade and industry, said if Congress passed legislation to curb textile imports, which would hit EC shipments as well as shipments from major Asian textile producers, "the community would have to retaliate." His comments echoed those made yesterday by Belgian Trade Minister Herman De Croo, who said if the bill passed, the community would retaliate by imposing taxes on U.S. exports. Channon made his remarks at a news conference after two days of talks with Reagan Administration officials and members of Congress. De Croo was also in Washington for trade talks. Channon said there was a greater protectionism sentiment in Congress since his visit here last year as Congress and the Administration tried to find ways to reduce the U.S. trade deficit, which last year hit a record 169.8 billion dlrs. Channon also called for greater EC-U.S. cooperation to force Japan to open its markets to foreign goods. Channon said Japan's trade surplus is causing everyone problems - its surplus with the United States last year was 51.5 billion dlrs and with EC nations, 16.7 billion dlrs. "The more united pressure there could be, the better," he said. Channon also called for increased U.S.-EC cooperation to avoid trade disputes. He said the two sides narrowly avoided a confrontation earlier this year over lost grains sales when Spain and Portugal joined the community and its liberal imports regulations were tightened to conform to EC standards. "But if both sides drew back from the brink that time," he said, ""it does not mean that they would do so on another occasion." Channon added that "There is increasing reesentment in Europe over the U.S. tactic of negotiating under the pressure of unilaterally imposed deadlines." He said other potential conflicts are already in sight - alleged European government subsidies of Airbus aircraft and taxes on fats and oils - and "the commuity and the United States must therefore learn to manage their relations better." He said another bill to let the United States retaliate against a nation if that nation's market was not open to U.S. goods would bypass the trade pact GATT (General Agreeeement on Tariffs and Trade) as an arbiter of trade practices. He said foreign trade law should be judged by GATT and not by the United States, adding "if the (trade) law is to be interpreted by the United States and not by the GATT, what is to happen to the rest of us?"  
YEUTTER PLANS TRADE TRIP TO CHINA THIS SUMMER. U.S. Trade Representative Clayton Yeutter said he plans a July trip to China to discuss trade issues including China's admission to the General Agreements on Tariffs and Trade. Yeutter told a congressional hearing it was possible China could be a member of GATT before the end of the year. "They are making major moves to becoming a full scale member of the world economy," he told the House Appropriations subcommittee which oversees his agency's budget. Depending on how the negotiations go on the terms of China's GATT membership, Yeutter said he could put the final touches on the U.S. part of the agreement during his trip. The admission of China to GATT, which is the multinational group of nations which negotiates international rules on trade, would offer both potential export markets and potential competition for U.S. industries, he said. "That has a lot of potential as well as risks for U.S. business," Yeutter said. "I think China will develop into a fine market for us," he added.  
YEUTTER CONCERNED ABOUT U.S. EXPORT PICTURE. U.S. Trade Representative Clayton Yeutter said he expects imports to fall soon but he was concerned about the lack of improvement in U.S. exports given the dollar's decline in the last 18 months. "I'm convinced we're about to see an improvement on the import side. I'm more concerned about the export side," he told a House Appropriations subcommittee. Part of the blame goes on other countries which have not generated the economic growth to increase demand for U.S. goods and part to some U.S. companies which are not generating competitive exports, he said.  
HOUSE TRADE BILL DRAFTING POSTPONED. The House Ways and Means trade subcommittee postponed until next week its opening session to start drafting major changes to U.S. trade laws, a committee aide said. The subcommittee had not yet completed the preparatory work to start writing the legislation, the aide said.  
BELGOLUX TRADE MOVES INTO SURPLUS IN 1986. The Belgo-Luxembourg Economic Union (BLEU) moved into a narrow trade surplus of 4.7 billion francs in 1986 after a 140.4 billion franc deficit in 1985, figures given by a spokesman for the National Statistics Institute show. He said imports fell last year to 3,061.8 billion francs from 3,304.1 in 1985 while exports were also lower at 3,066.6 billion francs against 3,163.7 billion. In December, the BLEU had an 11.9 billion franc trade surplus after a 10.9 billion franc surplus in November and a 2.3 billion franc surplus in December 1985.  
U.S. TELLS JAPAN TO DO MORE TO CUT TRADE SURPLUS. U.S. Undersecretary of State for Economic Affairs Allen Wallis said he had urged Japan to do much more to reduce its large trade surplus with the United States. "Our central message to Japan this week was that while we have made progress in some areas, much needs to be done," he told a press conference after three days of talks. "What we need is a resolution of trade issues, we need visible efforts to restructure the economy to encourage more imports and we need greater domestic-led growth." Forecasting sluggish economic growth in Japan this year, Wallis urged Tokyo to stimulate domestic demand to help reduce its trade surplus, which hit a record 83 billion dlrs in 1986. He named several areas of particular concern to Washington -- computer microchips, supercomputers, Kansai airport, agricultural products and car telephones. He warned that the U.S./Japan agreement governing trade in semiconductors was in jeopardy. Despite the pact, Japanese producers are still dumping microchips in foreign markets other than the United States while U.S. Penetration of the Japanese market has not increased, he said.  
ECONOMIC SPOTLIGHT - POLISH SANCTIONS. Poland says U.S. Sanctions have cost its economy 15 billion dlrs and has made clear it wants Washington to take a lead in repairing the damage after lifting remaining restrictions two weeks ago. Polish officials are unable to provide a precise breakdown of the figure, saying it takes into account a number of hypothetical losses. Some of them are "too sophisticated to convert into financial terms," one banking source said. But Western economic experts say the effect of sanctions is impossible to calculate. They say it is blurred by the poor performance of Poland's economy, and dismiss the 15 billion dlr figure as illusory. "Sanctions have provided a very useful excuse for under- achieving. They did have a bad effect, yes, but they only contributed to largely internal, economic problems," one said. The U.S. Imposed the measures and withdrew Most Favoured Nation (MFN) trading status from Poland in 1982 in retaliation for suppression of the Solidarity free trade union under martial law. The estimated cost to the Polish economy was originally devised several years ago by the Institute of National Economy, an offshoot of the central planning commission. According to one Western envoy, an expert on Polish economic affairs, it extrapolated 1979 information on growth trends in trade with the United States, as well as increases in credits from Western commercial and government lenders. But the calculations were based on a time when trade was booming and credits still flowed freely, he said, dismissing the estimate as "a theoretical projection based on a high point, which has no real scientific evaluation." A foreign trade ministry official said Polish exports to the U.S. In the late 1970s averaged around 400 mln dlrs annually and had fallen by half since the sanctions were imposed. Imports have suffered, slumping from around 800 mln dlrs to 200 mln, as credits ran out. Poland has a dwindling trade surplus with the West. Last year it was one billion dlrs against a targeted 1.6 billion, official figures show. Acknowledging that sanctions have lost Poland important U.S. Markets -- including agricultural equipment, textiles, chemicals and some foodstuffs -- Western economists say credits dried up for economic not political reasons.  "Poland is accusing the West of letting economic relations deteriorate for political reasons," said one expert. "It's an illusion based on a misunderstanding of Western economy." "There's a limit to how much you can go on giving someone who has no hope of repaying it," another said, adding that Poland had benefited from a global phenomenon of easy credits in the 1970s which were no longer today's reality. Describing the 15 billion dlr assessment as "nebulous," one diplomat said it also included losses of hypothetical orders and setbacks to Polish research through the curbing of scientific links and exchanges.  Western officials say the lifting of sanctions and new MFN status will have little impact on Poland, which has a hard currency debt of 33.5 billion dlrs and lacks the means to modernise its industry. "MFN doesn't really mean anything, only that Poland will not be treated worse than other countries. It will be difficult to regain access to the U.S. Market because different forces are in play now," said one Western envoy. He said Polish products were not competitive, and their quality was too low. Trade wars and possible protectionist measures amongst the U.S., Japan and Europe would also hamper Poland's efforts to regain entry. Deputy foreign trade minister Janusz Kaczurba recognised this fact recently. Kaczurba told the official PAP news agency recently, "Making up our lost position will take a long time and be uncommonly difficult, and in certain cases impossible... In a period of two to three years it will be possible to increase the level of exports by only about 100 mln dlrs." While Poland is unlikely to seek compensation, it says it has a "moral right" to assistance from the U.S. Which it says imposed the sanctions illegally. But a Western economist said "The argument that U.S. Sanctions were a unilateral torpedoing of the Polish economy won't cut any ice. The Americans will just reply that the Poles acted immorally in crushing Solidarity." Nevertheless, Polish National Bank head Wladyslaw Baka, in talks in Washington last week with the International Monetary Fund (IMF) and World Bank, made it clear that Poland was looking for a lead from the United States. He was quoted by PAP as saying that Poland would meet its financial obligations to the United States, "but not in a short time and not without a cooperative stand on the part of its foreign economic partners." He stressed that the U.S. "had a particular opportunity to play a part in the cooperative policy of Poland's partners interested in the settlement of Polish debt." Putting it more sharply, one senior banking official blamed Washington for obstructing talks with the World Bank, IMF and Paris Club of Western creditor governments in recent years and said it should now play a more positive role. "As a major superpower the United States can influence international organisations," he said, citing recent meetings aimed at stabilising currencies as an example of the extent to which Western nations were prepared to cooperate.  
YEUTTER SAYS U.S. BUDGET DEFICIT REDUCTION KEY TO TRADE DEFICIT SOLUTION.  YEUTTER SAYS U.S. BUDGET DEFICIT REDUCTION KEY TO TRADE DEFICIT SOLUTION  
CONSENSUS BUILDS FOR WORLD AGRICULTURAL REFORM. Top U.S. and European farm trade and government representatives called for a sweeping reform of world agriculture to redress a critical demand and supply imbalance. Speakers at a conference on world agricultural markets here demonstrated a growing U.S.-European consensus on the need for an urgent and collective overhaul of world farm trade and production. "It is vital that we work together to bring more freedom and harmony into the world agricultural trade...(if not) the disruptions in markets may grow even more severe, the walls of protection climb higher and the level of possible retaliation become more harmful," U.S. Department of Agriculture Deputy Administrator William Bailey said. Bailey said his attendance at the two-day meeting, which ends tomorrow, demonstrated the U.S. recognises the need to adjust its policies to the changing market environment. The need for urgent reforms is justified by the "imbalance and tensions of the world economy," the secretary general of the Organisation for Economic Cooperation and Development Jean-Claude Paye said. And the forum for such a reform is the General Agreement on Tariffs and Trade, he noted. Paye stressed the need for a progressive and joint reduction of agricultural subsidies as well as social measures to help farmers in unprofitable areas. Another possible solution would be to stop supporting farm prices, allowing them to be fixed by supply and demand, and instead help farmers through income support and adjustment aids, proposed James Howard, Executive Vice-president of Cargill (USA), one of the world's largest cereal houses. Franz-Josef Feiter, agricultural adviser to West German Chancellor Helmut Kohl, agreed the European Community must take greater heed of market constraints in fixing farm prices. However, "differentiated policy treatment is required" to take account of large disparities in the situation around the EC, he said. "Agriculture is an efficient sector of the European economy and will remain so if the right policy is pursued within the Community," he said.  
FRANCE, YUGOSLAVIA COMMISSION TO BOOST TRADE. France and Yugoslavia agreed to set up a joint economic commission as part of efforts to promote commercial links and industrial cooperation between the two countries. The French Finance Ministry said the commission, to be composed of businessmen, was agreed during talks between Foreign Trade Minister Michel Noir and Yugoslavian minister without portfolio Egon Padovan. A ministry statement said both sides had agreed on the need to boost trade links in keeping with an accord signed last year calling for a 50 pct rise in commercial exchanges between the two countries over the next six years. French trade with Yugoslavia has grown little over the past two years.  
BAKER SAYS G-6 PACT JUST A START. Treasury Secretary James Baker said the agreement among industrial nations in Paris last month is only a start in Washington's drive to intensify economic cooperation among leading countries. In a speech to the National Newspaper Association, Baker said "the six steps beginning with the Plaza Agreement and culminating in the Paris Accord, are only a start." He added "we see our role as a steward of a process in which we sit down with our industrial allies to find ways to promote more balanced international growth." The Paris agreements called trade surplus countries to strengthen their growth and on the U.S. to reduce its budget deficit. Under such circumstances, the countries agreed their currencies were within ranges broadly consistent with economic fundamentals. Baker also said he still sees "ominous" signs of pressure for protectionist trade legislation "and this pressure for protectionism is coming from new areas of society." But he also said he believed a coalition was forming that supported free trade.  
TREASURY'S BAKER FORECASTS REDUCTION IN JAPANESE TRADE SURPLUS THIS YEAR.  TREASURY'S BAKER FORECASTS REDUCTION IN JAPANESE TRADE SURPLUS THIS YEAR  
BAKER SEES LOWER JAPANESE TRADE SURPLUS. U.S. Treasury Secretary James Baker said the Japanese trade surplus would begin to decline this year. He told the National Newspaper Association "You're going to see a reduction in the Japanese trade surplus -- some of it this year". But he said the reduction would be due principally to the exchange rate shifts since the Plaza Agreement, and these shifts would take a long time to work their way through the system.  
NICARAGUA, ROMANIA, PARAGUAY LOSE TRADE RIGHTS. President Reagan formally ended preferential duty-free trade treatment for exports from Nicaragua, Romania and Paraguay under the Generalized System of Preferences (GSP). He took the action after determining that the three countries are not taking steps to give their workers internationally recognized rights. U.S. Trade Representative Clayton Yeutter had announced the intended action on January 2. The United States conducts no trade with Nicaragua and very little trade with Romania and Paraguay.  
BANGLADESH TRADE DEFICIT NARROWS IN OCTOBER 1986. The Bangladesh trade deficit narrowed to 1.91 billion Taka in October from 5.64 billion in September and 2.43 billion in October 1985, the Central Bank said. Imports dropped to 4.31 billion Taka in October from 8.22 billion in September and 4.72 billion in October 1985. Exports totalled 2.4 billion Taka in October, as against 2.58 billion in September and 2.29 billion in October 1985.  
STUDY SAYS U.S., CANADA PACT WOULD SPUR ECONOMIES. A free trade pact between the United States and Canada could spur the economies of both sides substantially, according to a study released by the Institute for International Economics. The study, by Paul Wonnacott, said a successful conclusion to the free trade talks now under way could raise Canada's gross national product by more than five pct and expand U.S. export's by about seven pct. He said the pact could resolve the knotty issue of government subsidies, end curbs on trade in services and investments and pave the way for new global talks under the General Agreement on Tariffs and Trade. The United States and Canada - the world's two biggest trading partners with cross border shipments of about 150 billion dlrs a year - opened free trade talks last June. They are aiming for a pact by next October. Wonnacott, an economics professor at the Univerity of Maryland, said an agreement should include: - Elimination of tariffs between the two countries, phased in over a five to 10-year period; - Equal access to federal government procurement in the two countries, replacing current "Buy America" and "Buy Canada" provisions with a "Buy North America" provision; - Fewer restrictions in trade in services, chiefly finance and transportation; - A commitment not to screen foreign investments in favor domestic producers; - A commission to resolve bilateral trade disputes. Wonnacott said that to resolve the subsidy problem, the two sides should permit export subsidies of exports of up to 2.0 or 2.5 pct without imposing coutervailing duties. The limit on subsidies is now 0.5 pct. He proposed that any attempt to impose new duties to offset subsidies should go first a special disputes commission for resolution at an early stage. Wonnacott said "bilateral free trade would contribute to the efficiency of the North American economies and to their competitiveness in facing overseas producers. He said it would it would open U.S. markets to Canadian goods and enable them to benefit from the economies of mass production. Benefits to the United States would be fewer than those to Canada proportionately, he said, because of the already large U.S. gross national product. Wonnacott said also that a U.S.-Canada pact in such areas as export subsidies and the creation of a dispute commission could set an example for the current attempt by GATT to write new and more liberal global trading regulations.  
KOREANS TO BUY 1.8 BILLION DLRS IN U.S. GOODS. South Korean Foreign Trade Minister Rah Woon Bae said his country's firms have agreed to buy 1.8 billion dlrs worth of U.S. goods during his two-week buying trip to the United States. Rah said most of the purchases represented shifts from Japanese firms to U.S. firms as part of South Korea's effort to reduce its seven billion dlr trade surplus with the United States. South Korea has a five billion dlr trade deficit with Japan.  
SOVIET ECONOMIST SEES FEW 1987 GAINS IN U.S. TRADE. There is little chance Soviet exports to the United States will rise in 1987, but Moscow's current trade reforms should result in more trade in manufactured goods in future, a Soviet economist said. Sergey Frolov, chief economist at Amtorg Trading Corp, an agent for Soviet trade organisations and industries, told a U.S.-USSR business meeting the Soviet Union produces few items that western nations want. But reforms, including upgrading the quality of goods and allowing joint ventures with foreign firms, will encourage modest export gains in future. Frolov said the Soviet Union exported 500 mln dlrs worth of goods to the United States in 1986 and imported 1.5 billion dlrs worth. He gave no trade forecast for 1987. But he said that even if all obstacles were removed, total trade between the two countries would remain between two and three billion dlrs a year. "The post-detente embargoes have taught the USSR to limit its trading with the U.S.," he said.  
ECONOMIC SPOTLIGHT - JAPAN PUSHES ITS CHIPMAKERS. Japanese microchip makers are being strong-armed into compliance with a U.S.-Japan pact on semiconductors halting predatory pricing and opening Japan's market to foreign chips, industry analysts said. But doubts remain over whether the Ministry of International Trade and Industry (MITI), which is pressuring the firms, can successfully battle market forces and whether the U.S. Industry is geared up to take advantage of any breathing space, they said. U.S. Threats to scrap the agreement signed last September have pushed MITI to try harder to get recalcitrant Japanese chipmakers to abide by the pact, the analysts said. "MITI has been moving hot and heavy throughout the industry to get things done," said Bache Securities (Japan) associate vice president Peter Wolffe. Last month, MITI told chipmakers to cut production for the January to March period by 10 pct to help dry up inexpensive chips that have escaped from Japan to grey markets not subject to the pact's price controls. The ministry also asked electronics firms to provide distributors with certificates designating them as authorised exporters, in an effort to close loopholes through which grey marketeers sneak chips out of Japan, market analysts said. U.S. Trade negotiators here last week said the pact was in jeopardy because of continued dumping in non-American markets and little sign of increased foreign sales in Japan. But major Japanese firms appear to have agreed to the production cuts, several analysts said. Last week, NEC Corp said it would cut production in line with MITI's request. "NEC has been the most aggressive in resisting MITI's demands," said David Keller, analyst at James Capel and Co. "Once NEC cuts production, it means they all have." Still, pressures remain to keep production high. Japanese firms need high output to cut unit prices for U.S. Sales that the Commerce Department assigns them under the pact. "The best way to lower cost is to produce more," said Salomon Brothers Asia Ltd analyst Carole Ryavec. Preparations for a possible upturn in demand could also spur higher production next quarter, Merrill Lynch analyst Matt Aizawa said. Grey marketeers may also be able to outfox any new restrictions, some industry officials said. "It's like tax avoidance schemes," said Steve Donovan, head of MMI Japan K.K. "As soon as you close one route, another opens." MITI's pressure has annoyed some makers, who had earlier shrugged off MITI guidance. "It's getting to be like communism," said one. But analysts said output cuts could help by making it easier to increase prices as planned on April 1 and forcing firms to stop extending market share by selling at a loss. "They're going to have to start running their businesses like businesses," Bache's Wolffe said. MITI has also been conducting a highly public campaign urging chip users to buy foreign-made chips, but U.S. Industry officials said response has been mixed at best. "There has been some change, but it's not across the board," said one U.S. Spokesman. "The companies have a varying degree of urgency." The ultimate impact of all these efforts by MITI on the troubled U.S. Industry remains in doubt, analysts added. Pressure to cut production of 256 kilobit DRAM (dynamic random access memory) chips could merely speed the transition to one megabit chips, where Japan now leads, analysts said. Whether U.S. Firms are able to stage a comeback in memory chips, or interested in doing so, also remains unclear, they said. Analysts are watching with interest the fate of a new U.S. Consortium which hopes to challenge Japan by developing the most advanced technology for microchip manufacturing. Even in the thorny area of access, much depends on U.S. Commitment as well as on Japanese openness, some said. "The SIA (U.S. Semiconductor Industry Association) doesn't even have an office here," a source close to the industry said. "You could question just how committed they are." In addition, some industry analysts question the effectiveness of a bilateral agreement that leaves out third country chipmakers such as those in South Korea. "(South) Korea's gaining market share," said one analyst. "They're the real winners from the agreement."  
SOVIET ECONOMIST SEES FEW GAINS IN U.S. TRADE. There is little chance Soviet exports to the United States will rise in 1987, but Moscow's current trade reforms should result in more trade in manufactured goods in future, a Soviet economist said. Sergey Frolov, chief economist at Amtorg Trading Corp, an agent for Soviet trade organisations and industries, told a U.S.-USSR business meeting the Soviet Union produces few items that western nations want. But reforms, including upgrading the quality of goods and allowing joint ventures with foreign firms, will encourage modest export gains in future. Frolov said the Soviet Union exported 500 mln dlrs worth of goods to the United States in 1986 and imported 1.5 billion dlrs worth. He gave no trade forecast for 1987. But he said that even if all obstacles were removed, total trade between the two countries would remain between two and three billion dlrs a year. "The post-detente embargoes have taught the USSR to limit its trading with the U.S.," he said.  
EC CONCERNED OVER U.S. TEXTILE IMPORT MOVES. The European Community (EC) expressed disquiet over protectionist moves in the United States to limit imports of textiles and said it would retaliate immediately if EC exports were hit. A spokeswoman for the EC Commission said EC External Trade Commissioner Willy De Clercq had written to his U.S. Counterpart, special U.S. Trade Representative Clayton Yeutter, outlining the concerns of the 12-nation Community. The draft legislation under consideration by Congress would impose permanent quotas on products entering the U.S. and seek to limit any increase to a growth in the overall trade.  
SOUTH KOREA TO KEEP TRADE SURPLUS 3-5 YEARS. South Korean Trade Minister Rha Woong Bae said his nation would maintain a trading surplus for three to five years as a way to cut its foreign debt. He said in an interview with Reuter that after a few years it was likely South Korea would drop barriers to foreign goods and move toward a more balanced trade position. He said the present trade surplus was vital if his nation was to reduce its 44.5 billion dlr foreign debt. Rha said that 1986 was the first year South Korea had a trade surplus - 4.5 billion dlrs, against a 1985 deficit of 900 mln dlrs. Rha made his remarks at the end of a two-week trade mission here during which a team he led agreed to buy U.S. products valued at 1.8 billion dlrs. About 800 mln dlrs of the purchases here were in goods of the type South Korea normally bought from Japan. Rha leaves today for Ottawa for trade talks with Canadian officials and businessmen. Asked if South Korea would retaliate against U.S. goods if Congress closed U.S. markets to its products, he said "at this moment, we have no thought of retaliation." South Korea is a major exporter to the U.S. of textiles and apparel and electronic goods, such as television sets, video cassette records and personal computers. Its purchases from the United States include electronic testing equipment, grains and cotton.  
SOUTH KOREA TO MAINTAIN TRADE SURPLUS 3-5 YEARS. South Korean Trade Minister Rha Woong Bae said his nation would maintain a trading surplus for three to five years as a way to cut its foreign debt. He said in an interview with Reuters that after a few years it was likely South Korea would drop barriers to foreign goods and move toward a more balanced trade position. He said the present trade surplus was vital if his nation was to reduce its 44.5 billion dlr foreign debt. Rha said that 1986 was the first year South Korea had a trade surplus - 4.5 billion dlrs, against a 1985 deficit of 900 mln dlrs. Asked if South Korea would drop its trade barriers once its foreign debt was substantially reduced, he said "yes, I think so." Rha made his remarks at the end of a two-week trade mission here during which a team he led agreed to buy U.S. products valued at 1.8 billion dlrs. About 800 mln dlrs of the purchases are in goods of the type South Korea normally bought from Japan. Rha was to leave later today for Ottawa for trade talks with Canadian officials and businessmen. He said in the interview the U.S. purchases were to reduce his country's 7.1 billion dlr surplus with the United States and also to cut its 5.6 billion dlr shortfall with Japan. Rha said it was also due to a shift in exchange rates between the U.S. dollar and the yen that made it cheaper to buy U.S. goods than Japanese goods. He said South Korea heavily relied on foreign trade and he hoped the leaders of major trading nations could find a way to resolve the growing trend toward protectionist legislation. Rha said "I hope the leaders can get together to find a solution by making some mutually satisfactory concessions." But he added "the leaders seem hesitant to make concessions because of domestic political reasons." Speaking of his own country, he said "We have made a lot of concessions already." He cited regulations permitting foreign investment in industrial firms, allowing increased foreign banking activity and cracking down on piracy of intellectual property by strengthening protection of copyrights and patents. Rha said South Korea had also lowered many of its tariffs. Asked if South Korea would retaliate against U.S. goods if Congress closed U.S. markets to its products, he said "at this moment, we have no thought of retaliation." South Korea is a major exporter to the United States of textiles and apparel and electronic goods, such as television sets, video cassette records and personal computers. Its puchases from the United States include electronic testing equipment and grains and cotton. The trade mission's purchases here included three Boeing passenger planes for 400 mln dlrs, four McDonnell Douglas planes for 300 mln dlrs; and machinery worth 725 mln dlrs.  
U.S. HOUSE PANEL TAKES FIRST TRADE BILL VOTES. House trade lawmakers took their first votes on measures designed to toughen U.S. trade laws but held over until tomorrow the most difficult votes on controversial plans to protect American industries. Meeting in closed session, the House Ways and Means Trade Subcommittee failed to resolve one of the most sensitive issues in the bill--whether they will force major foreign trading partners to severely cut their trade surpluses with the United States. The subcommittee is considering a toned-down version of Democratic-sponsored trade legislation that aims to open foreign markets but which drops last year's effort to force President Reagan to retaliate with quotas or tariffs. Congressional aides who asked not to be identified said the lawmakers intend to wrap up their proposals tomorrow and will consider a proposal to mandate retaliation without setting specific trade penalties. The legislation faces another hurdle in the full Ways and Means Committee next week before the full House votes on it. Rep. Richard Gephardt, a Missouri Democrat who is seeking his party's 1988 presidential nomination, said he may offer an amendment to call for reductions in the trade surpluses of those countries with barriers to imports of U.S. goods. This would be a moderated version of his earlier plan to force a mandatory ten per cent annual cut in the trade surplus with the United States by Japan, South Korea, Taiwan, West Germany and other countries with the largest trade imbalances. "My criteria for a good amendment sets a standard for getting the trade deficit down," he told reporters. The trade law changes are to become part of a major congressional and administration effort to turn around the record U.S. trade deficit of 169 billion dlrs last year by opening up foreign markets and making U.S. products more competitive. House Speaker James Wright, a Texas Democrat, said again today he expects the full House will approve the trade bill by May and that Reagan will accept the final congressional bill. "I expect whatever is reported (by the Ways and Means Committee) will pass. We will have a good bill and an effective bill," he told reporters. The comprehensive trade bill will include work by other committees to ease export controls on high technology, to aid U.S. workers displaced by foreign competition, to stimulate research and development, to remove foreign trade barriers and to improve education and worker training. The lawmakers agreed that for the first time a U.S. industry could charge foreign producers with unfair competition if they deny basic worker rights such as collective bargaining, safety rules and payment of a minimum wage appropriate to the country's economic development. They transferred to U.S. Trade Representative Clayton Yeutter the powers now held by Reagan to decide whether to retaliate against foreign violations of fair trade rules and whether an injured industry deserves import relief. They agreed to make it easier for a company to get temporary relief from import competition but agreed the industry should provide a plan to become competitive. The administration has not announced its support but Yeutter said yesterday, "I am cautiously optimistic," that the Democratic-led House will come up with an acceptable bill.  
SOVIET MINISTER SAYS TRADE BOOST UP TO FRENCH. Soviet first deputy prime minister Vsevolod Murakhovsky said at the end of a brief visit here his country wanted to boost joint business with France, but that a reduction of France's trade deficit with the Soviet Union depended on the French. Murakhovsky, who is also chairman of the State Agro-Industrial Committee (GOSAGROPROM), told a news conference he had discussed a variety of possible deals with French companies Rhone-Poulenc, Pechiney and Imec. Declining to put figures on possible contracts he said he had discussed plant protection and the processing of highly sulphuric gas with Rhone-Poulenc, packaging technology for agricultural products with Pechiney, and fruit and vegetable juice processing with Imec. An official for Pechiney said an agreement of intent on packaging could be signed soon, but could not give any other details. The other two companies were not immediately available for comment. Asked whether he foresaw a reduction this year of France's trade shortfall, at 7.6 billion francs in the first 11 months of 1986 against 5.1 billion for the whole of 1985, Murakhovsky told Reuters: "It all depends on France." At a meeting in Paris last January French and Soviet foreign trade ministers said they were committed to increased efforts to reduce the deficit. Estimates at the time showed a French 190 mln franc surplus for December 1986. Murakhovsky said the Soviet Union was prepared to talk with anybody with "interesting" proposals offering latest technology and assuring "a mutual advantage." He said the Soviet Union had many tasks ahead of it and would deal rapidly with proposals it considered interesting. He encouraged companies to take advantage of new laws guaranteeing "the interests of foreign partners" in joint ventures. But he said no agreements had yet been finalised under the new joint venture laws. He said concrete deals had not yet been finalised as a result of a one billion dollar accord signed in Moscow last month with French businessman Jean-Baptiste Doumeng. He said Doumeng's Interagra company was preparing proposals for further examination by the Soviet Union. Doumeng last month said the agreement was to exchange one billion dollars worth of goods. Murakhovsky said the agreement was one of intent, and designed primarily to renew and increase the Soviet Union's food production capacity.  
BRITAIN CALLS ON JAPAN TO INCREASE IMPORTS. Britain today called on Japan to increase foreign imports or risk the rise of protectionism and the harm it would bring to it and other trading nations. British Trade and Industry Secretary Paul Channon said Japan must heed a report issued by a Japanese government advisory body in December calling for faster domestic demand to help cut its trade surplus and restructure its economy. "I recognise that the strong yen has brought problems to Japan's domestic economy," he told a group of Japanese businessmen in London. "But these short term difficulties should not be allowed to deflect Japan from the fundamental reforms necessary," he said. "It is not just a domestic issue for Japan. If import propensity does not expand very soon there is a real risk from protectionist lobbies, particularly in the U.S. With whom Japan has so massive a surplus," he said. "They may well succeed in securing action by governments which would be highly injurious to trading nations like Japan and the U.K." Channon said there had been substantial growth in the volume of trade between Japan and Britain, amounting to 6.2 billion sterling (9.8 billion dlrs) last year. But he added: "Regrettably too much of it was in one direction, with the Japanese selling us 3.7 billion sterling (5.8 billion dlrs) more than we sold them."  
TAIWAN FURTHER RELAXES FOREIGN GOODS IMPORT CURBS. Taiwan said it would soon relax import controls on some 400 foreign items, including stationery and books, in a further effort to allow trading partners, especially the U.S., Greater access to its markets. Taiwan announced the easing of import curbs on some 600 farm and industrial products last month, a Council for Economic Planning and Development spokesman told Reuters. He said the new move was intended to balance trade between Taiwan and its trading partners. The island's trade surplus reached a record 15.6 billion U.S. Dlrs last year, up from 10.62 billion in 1985. In January, Taiwan cut import tariffs on some 1,700 foreign products and allowed imports of U.S. Wine, beer and cigarettes. "We hope the measures will help reduce our trade surplus this year, especially with that of the U.S.," the spokesman said. Washington is pressing Taiwan to open its markets wider as a way of cutting its trade deficit with the island, which rose to 2.35 billion U.S. Dlrs in the first two months of 1987 from 1.87 billion in the year-earlier period.  
CHINA TRADE DEFICIT FALLS IN JANUARY. China's trade deficit in January fell to 310 mln dlrs from 460 mln in January 1986, the China Daily Business Weekly said. Quoting customs figures, the paper said exports fell to 1.75 billion dlrs from 1.84 billion and imports fell to 2.06 billion from 2.3 billion.  
CANADA JANUARY TRADE SURPLUS 533 MLN DLRS AFTER DECEMBER 965 MLN DLRS SURPLUS.  CANADA JANUARY TRADE SURPLUS 533 MLN DLRS AFTER DECEMBER 965 MLN DLRS SURPLUS  
CANADA JANUARY TRADE SURPLUS 533 MLN DLRS. Canada had a trade surplus of 533 mln dlrs in January compared with an upward revised 965 mln dlrs surplus in December, Statistics Canada said. The December surplus originally was reported at 964 mln dlrs. The January surplus last year was 1.19 billion dlrs. January exports, seasonally adjusted, were 9.72 billion dlrs against 10.39 billion in December and 10.89 billion in January, 1986. January imports were 9.19 billion dlrs against 9.43 billion in December and 9.71 billion in January 1986.  
CANADA LEADERS FAIL TO SET PACT ON FREE TRADE. Prime Minister Brian Mulroney said he held "frank" discussions with the Canadian province premiers on the pace of free trade talks with the United States, but the longstanding issue of provincial ratification remains to be settled. Speaking to reporters after nearly five hours of meetings with the 10 premiers, Mulroney said further discussions would be held in June and September to discuss the role of the provinces in approving any new trade deal. But he maintained progress was being made in the sweeping talks with the Unites States that got under nearly two years ago. "It appears reasonable progress is being made (in the talks)," Mulroney said. Alberta Premier Don Getty agreed, "Things are running pretty quickly now." The talks, launched by Mulroney's Progressive Conservative government after concerns about protectionist sentiment in the U.S., are aimed reducing the remaining barriers between the world's largest trading partnership. But the provinces are expected to play a major role in any new trading arrangement, and some of the provincial leaders complained of a lack of progress on reaching a ratification formula. "It's my view that we should be thinking about these things right now, along with the questions of the substance of the agreement," commented Ontario Premier David Peterson, who has been highly critical of the talks in the past. But Newfoundland Premier Brian Peckford said an agreement was more likely to emerge by consensus and there would be no need for a "hard and fast formula." Peckford said it appears Canada is prepared to make concessions to the United States on financial services in order to make inroads on other bargaining areas, such as agriculture. Canadian published reports, quoting government sources, say the two countries are close to reaching a trade deal and it will involve eliminating border tariffs and many non-tariff barriers over the next 10 to 12 years. A rough draft of the accord is expected to be presented to the premiers at the June meeting while the finished document is hoped to be presented to Congress in October. "It's a very tight time frame," Ontario's Peterson said last night. "But at this moment it is tough to say what will transpire."  
TAIWAN TO RELAX IMPORT CURBS ON MORE GOODS. Taiwan will relax import controls on more foreign goods, a government spokesman said today. The move was to allow greater access to Taiwan markets by overseas trading partners, especially the United States, an official of the Council for Economic Planning and Development told Reuters. Import curbs on about 400 foreign goods, including stationery and books, would soon be relaxed, he said. Taiwan announced it would ease curbs on some 600 farming and industrial products last month. The official said the moves were intended to balance trade between Taiwan and the United States and other trading partners. Taiwan's trade surplus reached a record 15.6 billion dlrs last year, up from 10.62 billion in 1985.  
PAKISTAN'S TRADE DEFICIT NARROWS IN FEBRUARY. Pakistan's trade deficit narrowed to 2.64 billion rupees (provisional) in February 1987 from 2.85 billion (final) in January and compared with 2.94 billion in February 1986, the Federal Bureau of Statistics figures show. Exports fell to 5.04 billion rupees (provisional) in February from 5.34 billion (final) in January and compared with 3.90 billion in February 1986. Imports fell to 7.68 billion rupees (provisional) in February from 8.19 billion (final) in January and compared with 6.84 billion in February 1986.  
SWEDEN SETS OCTOBER DEADLINE FOR S.AFRICA BOYCOTT. Sweden announced its promised program of unilateral economic sanctions against South Africa and gave firms an October deadline to cut trading links. Foreign Trade Minister Anita Gradin said a trade boycott of South Africa and neighbouring Namibia would take effect from July 1, followed by a three-month period of grace to give companies time to wind down their operations. From October 1, no direct trade would be allowed in either direction, with certain exceptions covering medical supplies and printed matter, Gradin told a news conference. She said exceptions would also be granted in cases where a Swedish trade boycott would benefit South African firms and disadvantage South Africa's black-ruled neighbours, the front-line states. Gradin cautioned that legislation upon which the boycott would be based was not impossible to get round. She said a parliamentary committee would investigate ways of closing some of the bigger loopholes, including indirect trade with South Africa via Swedish subsidiaries in third countries.  
VOLCKER SEES NO CLEARCUT EVIDENCE THAT U.S. TRADE DETERIORATION HAS YET BEEN REVERSED.  VOLCKER SEES NO CLEARCUT EVIDENCE THAT U.S. TRADE DETERIORATION HAS YET BEEN REVERSED  
KEY U.S. HOUSE TRADE SUBCOMMITTEE APPROVES BILL TO TOUGHEN U.S. TRADE LAWS.  KEY U.S. HOUSE TRADE SUBCOMMITTEE APPROVES BILL TO TOUGHEN U.S. TRADE LAWS  
NO CLEAR EVIDENCE TRADE GAP REVERSED - VOLCKER. Federal Reserve Board Chairman Paul Volcker said current data does not give a clear sign that the deterioration in the U.S. trade balance has yet been reversed. "The data we have in hand do not provide clearcut evidence that the deterioration in the trade balance has yet been reversed," Volcker said in remarks prepared for delivery to a luncheon for community leaders here. However, Volcker said there are encouraging signs, particularly the rising volume of exports over the past year, achieved despite relatively slow growth abroad. Volcker warned it is not sustainable from an economic perspective to pile up foreign debt while failing to make the investment needed to generate growth and earn the money to service the debt. He said the process of restoring external balance to the U.S. economy requires dealing with the budget deficit. He said needed economic adjustment will require a relative shift of financial and real resources into internationally competitive industry. "More of our growth will need to be reflected in net exports and business investment and less in consumption," Volcker said.  
U.S. HOUSE PANEL APPROVES TRADE BILL. The House Ways and Means Trade Subcommittee unanimously approved a toned-down version of legislation designed to toughen U.S. trade laws and wedge open foreign markets to more U.S. goods. The measure now goes to the full House Ways and Means Committee next week, but major changes are not expected, congressional sources said. "This product could very well be toughening our trade policy and doing it in a manner that opens markets without this frightening word 'protectionism'," Ways and Means chairman Dan Rostenkowski, an Illinois Democrat said. The trade subcommittee backed away from mandating specific retaliation against foreign countries for unfair foreign trade practices as the House had approved in a trade bill last year. But it held over for the full Ways and Means Committee debate on a controversial plan by Rep. Richard Gephardt to mandate a reduction in trade surpluses with the U.S. by countries such as Japan, South Korea and Taiwan. Gephardt, a Missouri Democrat, has not decided the exact form of his amendment, an aide said. Last year the House approved his idea to force an annual ten pct trade surplus cut by those countries. The trade bill will be wrapped in with legislation from other committees dealing with relaxation of export controls, incentives for research, expanded worker training and education and other efforts to increase U.S. competitiveness. The comprehensive trade bill is to be considered by the full House in late April and then will be considered by Senate committees. It requires President Reagan to retaliate against foreign unfair trade practices but do not mandate quotas or tariffs and allow an exemption if U.S. economic security would be harmed by U.S. actions against other countries. The bill would make it easier for U.S. industries to win relief from surges of imports of competitive products. It extends until January 1993, the administration's authority to negotiate trade agreements as part of the new round of multilateral talks under the General Agreements on Tariffs and Trade. And, it includes provisions to tighten trade rules on copyrights, patents and telecommunications goods.  
U.S. HOUSE PANEL APPROVES TRADE BILL. The U.S. House Ways and Means Trade Subcommittee unanimously approved a toned-down version of legislation designed to toughen U.S. trade laws and wedge open foreign markets to more U.S. goods. The measure now goes to the full House Ways and Means Committee next week, but major changes are not expected, congressional sources said. "This product could very well be toughening our trade policy and doing it in a manner that opens markets without this frightening word 'protectionism'," Ways and Means chairman Dan Rostenkowski, an Illinois Democrat said. The trade subcommittee backed away from mandating specific retaliation against foreign countries for unfair foreign trade practices as the House had approved in a trade bill last year. But it held over for the full Ways and Means Committee debate on a controversial plan by Rep. Richard Gephardt to mandate a reduction in trade surpluses with the U.S. by countries such as Japan, South Korea and Taiwan. Gephardt, a Missouri Democrat, has not decided the exact form of his amendment, an aide said. Last year the House approved his idea to force an annual 10 pct trade surplus cut by those countries.  
JAPAN DENIES BREAKING SEMICONDUCTOR TRADE PACT. Japan denied breaking a pact with the U.S. On semiconductor trade but said prices set out in the pact were too high and acknowledged difficulties in implementing the accord. "We are faithfully abiding by the ... Agreement but of course there are some problems," a spokesman for the International Trade and Industry Ministry told Reuters. He said the high semiconductor prices recommended by the agreement were leaving Japanese manufacturers piling up stocks of unsellable products. "We are aiming to reduce production in Japan but of course this takes time," he said. The spokesman said some Japanese companies were selling chips in Europe and Asia below stipulated prices, but added: "It is only a matter of time before we solve this problem." The eight month old pact aims to stop Japan selling large quantities of chips at knock-down prices to the United States and other countries and to increase U.S. Semiconductor sales in Japan. The U.S. Senate Finance Committee this week called on President Reagan in a non-binding resolution to retaliate against Japan for violating the agreement.  
SWISS FEB TRADE DEFICIT 629.7 MLN FRANCS (JAN DEFICIT 209.4 MLN) - OFFICIAL.  SWISS FEB TRADE DEFICIT 629.7 MLN FRANCS (JAN DEFICIT 209.4 MLN) - OFFICIAL  
SWISS FEBRUARY TRADE DEFICIT 629.7 MLN FRANCS. Switzerland had a trade deficit of 629.7 mln Swiss francs in February compared with a revised 209.4 mln deficit in January and 723.2 mln shortfall in February 1986, the Federal Customs Office said. February imports were 6.00 billion francs against exports of 5.37 billion. Imports rose in real terms by 5.1 pct against February 1986 while exports rose by a real 4.6 pct, the office said. But a further improvement in the terms of trade left the deficit smaller than last year. Last February's figure had also been hit by the import of two passenger aircraft.  
BANK OF JAPAN CALLS FOR LONG-TERM EFFORTS ON TRADE. The short-term effect of foreign exchange rate movements in correcting international trade imbalances appears to be waning, and long-term efforts are required to cut Japan's chronic dependence on external demand, the Bank of Japan said in a monthly report. Japan's trade surplus in nominal terms is likely to remain high in the near future, the central bank said. Fundamental adjustments will be needed as long as Japan hopes to benefit from a better international allocation of resources and maintain the free trade system, it added.  
BANK OF JAPAN CALLS FOR LONG-TERM EFFORTS ON TRADE. The short-term effect of foreign exchange rate movements in correcting international trade imbalances appears to be waning, and long-term efforts are required to cut Japan's chronic dependence on external demand, the Bank of Japan said in a monthly report. Japan's trade surplus in nominal terms is likely to remain high in the near future, the central bank said. Fundamental adjustments will be needed as long as Japan hopes to benefit from a better international allocation of resources and maintain the free trade system, it added.  
GERMAN BANK SEES GOOD SOVIET TRADE PROSPECTS. Soviet-West German trade is expected to develop favourably due to Moscow's increasing openness to East-West economic relations, Dresdner Bank AG's Moscow representative Michael Stein said. He told a bank presentation the Soviet Union was last year hit by the fall in world oil prices, which cut export revenue from oil-related products and natural gas, and its overseas buying power was also adversely affected by the lower dollar. Dresdner Bank economist Alfred Apholte said the Soviet Union's large currency and gold reserves had softened the impact of the dollar weakening and oil price drop.  
WHITE HOUSE SAYS TRADE BILL GENERALLY GOOD. White House spokesman Marlin Fitzwater said the administration had some disagreements with the trade bill that cleared a House subcommittee yesterday but generally felt good about the bill. "Generally we feel very good about the bipartisan consideration of the trade legislation. I think we are progressing very well," he told reporters. "There are wide areas of agreement. There are some areas of disagreement," he said.  
DUTCH TRADE FULLY IN BALANCE BUT DOWN IN JANUARY. The Netherlands recorded a flat trade balance in January, with both exports and imports totaling 14.2 billion guilders, a modestly lower compared with December but sharply down from January last year, an Economics Ministry spokesman said, quoting official statistics. January 1986 exports compared with a December figure of 15.0 billion guilders and were 25 pct below last year's level of 18.9 billion. January 1986 imports compared with 15.3 billion guilders in December and fell 18 pct from 17.4 billion in January last year.  
TRADE BILL TO CHANGE AGRICULTURE TRADE LAWS. The House Ways and Means Committee is moving toward passage of a trade bill that sponsors said was intended to help open foreign markets to U.S. agricultural goods and to modify some U.S. agricultural trade laws. The trade subcommittee voted to require President Reagan to take into account the potential harm to U.S. agricultural exports of any trade retaliation he might impose for foreign unfair trade practices against other domestic industries. The bill would allow U.S. agricultural producers to seek government monitoring of imports if there is a reasonable chance the industry would be harmed by an import surge. The full Ways and Means Committee is to consider the bill next week and congressional sources said they expect it will be approved. In investigations involving a processed agricultural product, trade associations of processors or producers would have to petition for relief from foreign dumping or unfair duties. The bill sets out U.S. trade negotiating objectives for the Uruguay round of talks under the General Agreement on Tariffs and Trade. It would seek fair trade in agriculture, seek to discipline restrictive or trade distorting import and export practices, to eliminate tariffs, subsidies, quotas and non-tariff barriers. President Reagan's authority to negotiate a new GATT agreement would be extended through January 1993 and authority to negotiate a free trade zone with Canada would be extended through January 3, 1991. The bill extends Reagan's authority to negotiate an international coffee agreement through October 31, 1989. It allows a refund of import duties paid on raw sugar imported from November 1, 1977 to March 31, 1985 for production of sugar or products containing sugar and destined for re-export. The export of the sugar or products must occur before Octoer 1, 1991. Presently, to qualify for the refund the sugar must be processed within three years after import and exported within five years. Agriculture would also benefit from more rapid decisions in complaints of unfair foreign trade practices or injury from imports.  
SWEDISH TRADE SURPLUS RISES IN FEBRUARY. Sweden's trade surplus rose to 3.6 billion crowns in February from 1.5 billion in January and 3.48 billion in February 1986, the Central Bureau of Statistics said. The trade surplus for the first two months of the year rose to 5.1 billion crowns from 4.9 billion in the corresponding period of 1986. The report said February imports stood at 20.1 billion crowns while exports were 23.7 billion.  
BALDRIGE WARNS OF WORLD TRADE WAR DANGER. U.S. Commerce Secretary Malcolm Baldrige predicted Congress will pass a reasonable trade bill this year and said tough protectionist legislation could prompt a trade war. "The mood of the Congress right now is as tough on trade as I've ever seen it in six years in Washington," Baldrige said in a television interview. "I think we'll still be able to get a reasonable trade bill out in spite of that because the whole Congress is trying to work together with the administration, but there is a hardening trade attitude," he said. President Reagan opposes protectionist legislation, but agreed to support a trade bill when it became apparent that opposition Democrats would pass such legislation. However, Baldrige warned measures that would penalise trading partners such as Japan, South Korea and Taiwan for failing to cut their trade surpluses with the U.S. Could lead to retaliation and he said he would urge Reagan to veto any such bill. When asked if there is a rising danger of a worldwide trade war, Baldrige said: "Yes, I don't think there's any question about that."  
CHINA REPORTS 700 MLN DLR TWO-MONTH TRADE DEFICIT. China's trade deficit totalled 700 mln dlrs in the first two months of this year, according to figures released by the State Statistics Bureau. The New China News Agency quoted the Bureau as saying foreign trade totalled 9.3 billion dlrs in the period, of which exports were worth 4.3 billion dlrs. The bureau said total trade volume was up 2.5 pct on the same 1986 period, with exports up 18.1 pct, but it gave no other comparative figures. China's 1986 trade deficit totalled 12 billion dlrs, official figures show.  
NORWAY'S TRADE DEFICIT WIDENS IN FEBRUARY. Norway's trade deficit widened in February to 957 mln crowns from 80 mln crowns in January and 492 mln crowns in February last year, the Central Bureau of Statistics said. Exports dropped to 10.66 billion crowns last month, compared with 11.11 billion in January and 10.85 billion in February 1986, it added. Crude oil and natural gas exports totalled 4.56 billion crowns in February, against 5.10 billion in January and 5.36 billion a year ago.  
TURKISH TRADE DEFICIT WIDENS IN 1986. Turkey's trade deficit rose to 3.65 billion dlrs in 1986 from 3.39 billion in 1985 following increased imports from Western countries, figures from the State Statistics Institute show. Exports were down 6.3 pct at 7.45 billion dlrs, compared with 7.95 billion in 1985, while imports were down 2.1 pct at 11.10 billion dlrs from 11.34 billion. Total trade with Mid-East Gulf states fell some 40 pct due to lower oil prices, with imports at 1.55 billion dlrs, compared with 2.74 billion, and exports at 1.65 billion after 2.72 billion. Exports to Organisation for Economic Cooperation and Development countries rose to 4.29 billion dlrs from 4.11 billion in 1985, while imports were 4.56 billion after 3.55 billion. Turkey's trade deficit in December narrowed to 216 mln dlrs from 340 mln in November, and compared with 277 mln in December 1985.  
EGYPT, SOVIETS TO RENEGOTIATE ARMS DEBT TERMS. Egypt and the Soviet Union are expected to sign an agreement in Moscow next week settling Cairo's three billion dlr military debt, Egyptian officials said. One official, who asked to remain anonymous, told Reuters a draft agreement would reduce to zero from two pct future interest payable on the 10 year-old debt, and set a 25 year repayment term. Talks are due to begin in Moscow on Wednesday. Economy Minister Youssri Mustapha, who leaves for Moscow on Tuesday, met President Hosni Mubarak and Egyptian ambassador to Moscow Salah Bassiouni to discuss the issue. One official said Egypt would propose a new exchange rate for trade with the Soviet Union. Current commerce is based on a rate set in the 1960s of 0.38 Egyptian pounds to the dollar which Moscow sees as unreasonable. The fluctuating official rate is about 1.36 pounds to the dollar. The officials said part of the debt would be paid in exports of goods such as textiles, leather and furniture. Egypt wants to settle the debt problem partly to open the door for new cooperation, mainly in modernising Soviet-built steel, aluminium and fertiliser plants under a five-year development plan ending June 30 1992. Egypt, which already imports Soviet coal, wood, newsprint and glass, also wanted a debt deal to allow purchases of currently blocked spare parts for its ageing Soviet military hardware, the officials said. An estimated 65 pct of Egypt's arsenal is still made up of Soviet-supplied equipment, one official said. Cairo stopped repaying Moscow for arms purchases in 1977 when then-president Anwar Sadat broke with its long-standing ally and turned to the U.S..  
BALDRIGE WARNS OF WORLD TRADE WAR DANGER. U.S. Commerce Secretary Malcolm Baldrige predicted Congress will pass a reasonable trade bill this year and said tough protectionist legislation could prompt a trade war. "The mood of the Congress right now is as tough on trade as I've ever seen it in six years in Washington," Baldrige said in a weekend television interview. "I think we'll still be able to get a reasonable trade bill out in spite of that because the whole Congress is trying to work together with the administration, but there is a hardening trade attitude," he said. President Reagan opposes protectionist legislation but agreed to support a trade bill when it became apparent that opposition Democrats would pass such legislation. However, Baldrige warned measures that would penalize trading partners such as Japan, South Korea and Taiwan for failing to cut their trade surpluses with the U.S. could lead to retaliation and he said he would urge Reagan to veto any such bill. When asked if there is a rising danger of a worldwide trade war, Baldrige said: "Yes, I don't think there's any question about that."  
WEST GERMAN EXPORTS TO U.S. DROP SHARPLY. West German exports to the United States fell below four billion marks worth in January for the first time since mid-1984, provisional Bundesbank data showed. The figures showed exports were 3.85 billion marks in January, sharply down from December's 4.40 billion and the lowest since the 3.56 billion exported to the U.S. In July 1984. This compared with 4.86 billion marks in January 1986. Total West German exports to Western industrialised countries also fell in January to 34.76 billion marks from December's 36.45 billion, also posting the lowest monthly total since July 1984. West German exports to the European Community were 21.60 billion marks in January, down from 22.14 billion in December and 22.94 billion in January last year, the figures showed. Exports to developing nations and centrally-planned economies also slackened. Separately, Commerzbank AG said in a report that the focus of West German exports this year was likely to shift to Europe because of an expected downturn in growth in the dollar area. This was one of the strengths of West German exports compared with Japan, which depended in large part on the U.S., OPEC and developing country markets, it added.  
TRADE INTERESTS READY FOR FIGHT IN U.S. CONGRESS. U.S. lawmakers are gearing up for a showdown between protectionists and free traders as a major trade bill winds its way through committees to a vote by the full House of Representatives in late April. In a move to toughen U.S. enforcement of trade laws, a key House subcommittee last week approved a toned down version of legislation to require President Reagan to retaliate against foreign countries that follow unfair trade practices. This bill will be the cornerstone of congressional efforts to restore competitiveness of American industries and turn around last year's record 169 billion dlrs trade deficit. Several lawmakers have argued the new trade bill made too many concessions to Reagan and said they intend to back amendments to "get tough" with countries that violate trade agreements or keep out U.S. products. On the other hand, congressmen known for their allegiance to free trade, said the bill ties Reagan's hands too much in trade disputes and they will seek to restore his negotiating powers. Republican Bill Frenzel of Michigan said the subcommittee's bill was not one "that a free trader like me could endorse in all respects," but he emphasized there was a consensus among trade lawmakers to work toward a bill Reagan and Republicans would ultimately endorse. Frenzel said the goal of trade legislation was, "to make our trade policy stronger without violating our international trade agreements. You'll find a lot of people who think we have not done the former enough. You'll find poeple who think we haven't avoided violating agreements." In a key concession made at the urging of the powerful chairman of the House Ways and Means Committee, the trade subcommittee backed off a requirement that would have forced Reagan to automatically impose quotas or tariffs on imports from countries that engage in unfair trade practices. It also agreed he may waive any retaliation if it would hurt the U.S. economy. Ways and Means chairman Dan Rostenkowski, an Illinois Democrat, insisted the more moderate approach was necessary if the House wanted to pass a bill Reagan would sign into law. Reagan last year had blocked Senate consideration of a tough House trade bill he branded as protectionist and this year only reluctantly agreed to support a trade bill when he saw Democratic leaders were determined to pass a bill. As an indication of his success, White House spokesman Marlin Fitzwater told reporters Friday the administration still did not like some provisions. But he added, "Generally we feel very good about the bipartisan consideration of the trade legislation. I think we are progressing very well." The first battle will take place next week when the full House Ways and Means Committee considers an amendment by Rep. Richard Gephardt, a Missouri Democrat, to force countries such as Japan, South Korea and Taiwan to cut their trade surpluses with the United States. The subcommittee limited the Gephardt plan to provide only that the existence of a large trade surplus with the United States will trigger an investigation of unfair trade practices, but would not automatically set off retaliation. Rep. Phil Crane, an Illinois Republican and staunch free trader, said he will try to further weaken the Gephardt plan. Organized labor has pressed lawmakers for more relief from imports where jobs have been lost to foreign competition. AFL-CIO president Lane Kirkland this year angered the administration in a statement that any trade bill Reagan would sign would not be worth passage in Congress. But Rostenkowski set the tone of the trade debate in a statement, "I'm not trying to write legislation to please Lane Kirkland. I'm trying to write legislation that will be signed by the president." In writing the bill, the subcommittee rejected calls for trade relief for specific industries such as textiles. Rep. Ed Jenkins, a Democrat from Georgia, agreed to hold off his fight. He intends to push separately a bill to protect the domestic textile and shoe industry, an aide said. Reagan vetoed a similar measure last year. House Speaker Jim Wright, a Texas Democrat, is one of the most influential proponents of aid for specific industries beset by low priced foreign competition. Wright Thursday renewed his call for import relief for the domestic oil industry and announced his support for a Senate plan to trigger a temporary oil import tariff when imports reach half of domestic consumption. For the most part, the trade bill's provisions toughen U.S. enforcement of trade laws. The bill forces the administration to act rapidly on complaints of unfair trade practices such as dumping products in the United States at prices below the cost of production. It also forces the administration to act rapidly when an industry complains that a surge in imports threatens its existence. Congressmen said the change would have required the U.S. International Trade Commission to impose limits on car imports in 1981.  
CANADA PRIME MINISTER SAYS A MAJOR TRADE DEAL EMERGING WITH U.S..  CANADA PRIME MINISTER SAYS A MAJOR TRADE DEAL EMERGING WITH U.S.  
French adjusted February trade deficit 400 mln francs vs January deficit 2.5 billion.  French adjusted February trade deficit 400 mln francs vs January deficit 2.5 billion  
CANADA'S MULRONEY SAYS U.S. TRADE DEAL NEARS. Prime Minister Brian Mulroney said "significant progress" was being made in trade talks with the United States and a profile of a major deal was emerging. Opening a debate on free trade in the House of Commons, Mulroney said an accord would create thousands of jobs in Canada and bring greater economic prosperity to both countries. Mulroney, who offered few new details of the talks, said that while the negotiations were risky and difficult, "a profile of a major trade deal is now emerging." In a 50-minute address, Mulroney made an often passionate defense of the initiative that he said would give poorer areas of the country a major economic boost. "Because of our trading patterns over a period of decades, we are in the process of building two Canadas -- one that is rich and promising, one that is under-developed and under-employed," said Mulroney. "What we want is to make sure Newfoundlanders and British Columbians and Albertans and others, that they get their chance. They must be given the opportunity to trade their way to prosperity." Few detials have been released on the trade talks which were launched nearly two years ago between the two nations that are each others most important trading partners. Recent published reports in Canada, quoting senior trade sources, said the countries were close to reaching a trade deal and it will involve eliminating border trariffs and many non-tariff barriers over the next 10 to 12 years. It has been reported a key stumbling block in the talks is a Canadian proposal to find a new way to settle trade disputes, something that would give Canada protection from Washington's tough trade remedy laws. But Mulroney, sharply critical of protectionist sentiment in the U.S, said Canada was a "fair trader" and denied the government was pursuing the deal to win unfair access to the American market. He said a trade deal must bring benefits to both sides. "We recognize a good deal must be a fair deal, one that is fair to both sides," Mulroney said.  
FRANCE REDUCES TRADE DEFICIT IN FEBRUARY. France posted a seasonally adjusted trade deficit of 400 mln francs in February after a 2.5 billion franc deficit in January, the Finance Ministry said. For the first two months of this year the trade deficit, on a seasonally adjusted basis, was 2.9 billion francs. Unadjusted, the February deficit was 2.4 billion francs and the two-month cumulative deficit 8.1 billion, the ministry said in a statement. The Ministry said February exports totalled 73.8 billion francs, an 8.9 pct increase on January, while imports totalled 74.3 billion francs, an increase of 5.8 pct. Farm and food trade showed a two billion franc surplus after a surplus of 2.4 billion in January. The energy deficit was reduced to 6.5 billion francs from eight billion in January, while industrial trade showed a surplus of 1.4 billion francs against only 800 mln francs in January.  
TRADE INTERESTS READY FOR BATTLE IN U.S. HOUSE. U.S. lawmakers are gearing up for a showdown between protectionists and free traders as a major trade bill winds its way through committees to a vote by the full House of Representatives in late April. In a move to toughen U.S. enforcement of trade laws, a key House subcommittee last week approved a toned-down version of legislation to require President Reagan to retaliate against foreign countries that follow unfair trade practices. The bill will be the cornerstone of congressional efforts to restore competitiveness of American industries and turn around last year's record 169 billion dlrs trade deficit. Generally, the bill's provisions toughen U.S. enforcement of trade laws. The trade bill forces the administration to act rapidly on complaints of unfair trade practices, such as dumping products in the United States at prices below cost of production. It also forces the administration to act rapidly when an industry complains that a surge in imports threatens its existence. In writing the bill, the subcommittee rejected calls for trade relief for specific industries such as textiles. Several lawmakers have argued the new trade bill made too many concessions to Reagan and said they intend to back amendments to "get tough" with countries that violate trade agreements or keep out U.S. products. But congressmen known for their allegiance to free trade said the bill ties Reagan's hands too much in trade disputes and they will seek to restore his negotiating powers. Bill Frenzel, R-MI., said the subcommittee's bill was not one "that a free trader like me could endorse in all respects," but he emphasized there was a consensus among lawmakers to work toward a bill Reagan and Republicans would ultimately endorse. The goal of trade legislation was "to make our trade policy stronger without violating our international trade agreements," he said. In a key concession made at the urging of Ways and Means Committee chairman Dan Rostenkowski, D-IL., the trade subcommittee backed off a requirement that would have forced Reagan to impose automatically quotas or tariffs on imports from countries that engage in unfair trade practices. It also agreed the president may waive any retaliation if it would hurt the U.S. economy. Rostenkowski insisted the more moderate approach was necessary if the House wanted to pass a bill Reagan would sign into law. Reagan last year blocked Senate consideration of a tough House trade bill he branded as protectionist and this year he only reluctantly agreed to support a trade bill when he saw Democratic leaders were determined to pass such legislation. White House spokesman Marlin Fitzwater told reporters late last week that the administration still did not like some of the bill's provisions, but he added, "Generally we feel very good about the bipartisan consideration of the trade legislation. I think we are progressing very well." The first battle will take place next week when the full House Ways and Means Committee considers an amendment by Rep. Richard Gephardt, D-MO., to force countries like Japan, South Korea and Taiwan to cut their trade surpluses with the U.S. The subcommittee limited the Gephardt plan to provide only that the existence of a large trade surplus with the United States will trigger an investigation of unfair trade practices, but would not automatically set off retaliation. Organized labor has pressed lawmakers for more relief from imports where jobs have been lost to foreign competition. AFL-CIO president Lane Kirkland this year angered the administration when he said any trade bill Reagan would sign would not be worth passage in Congress. But Rostenkowski set the tone of the trade debate by saying, "I'm not trying to write legislation to please Lane Kirkland. I'm trying to write legislation that will be signed by the president." Rep. Ed Jenkins (D-GA.) intends to push separately a bill to protect the domestic textile and shoe industry, an aide said. Reagan vetoed a similar measure last year. House Speaker Jim Wright of Texas, one of the most influential proponents of aid for specific industries beset by low-priced foreign competition, last week renewed his call for import relief for the domestic oil industry and announced his support for a Senate plan to trigger a temporary oil import tariff when imports reach half of domestic consumption.  
BRAZIL TRADE SURPLUS RISES IN FEBRUARY. The trade surplus doubled in february to 261 mln dlrs from January's 129 mln, but was  below the 628 mln of February 1986, official figures show. The director of the Banco do Brasil's foreign trade department (CACEX), Roberto Fendt, told reporters the upturn in February confirmed a rising trend in exports, which totalled 1.53 billion dlrs against 1.26 billion in January and, after excluding coffee and oil derivitives, was only slightly below the same month last year. Coffee earnings were down to 110 mln dlrs against 295 mln in February 1986 because of lower prices, he added. Fendt said that although the February results were lower than the average expected for the rest of the year, the government's target of an eight-billion-dlr surplus for 1987 should be achieved. This would compare with a 1986 surplus of 9.5 billion dlrs. Exports this year are expected to total 22.5 billion dlrs and imports 14.5 billion, he added. In 1986 exports totalled 22.4 billion dlrs and imports 12.9 billion. Fendt said the rise in imports in February to 1.27 billion dlrs from 1.12 billion in February last year was in line with government plans to foster economic growth. Fendt said that imports were running at levels well above the traditional average for Brazil. In the first two months of the year imports, excluding oil and wheat totalled, 1.8 billion dlrs against 1.47 billion in the same 1986 period. This rise in import demand reflected the needs of Brazilian industry to equip to raise production and is perfectly compatible with the government's program for economic growth, Fendt added.  
BRAZIL'S TRADE SURPLUS DOUBLED IN FEBRUARY. Brazil's trade surplus doubled in February to 261 mln dlrs from January's 129 mln but was well below the 628 mln dlrs of February last year, official figures show. Director of the Banco do Brasil's foreign trade department (CACEX), Roberto Fendt, told reporters the upturn in February confirmed a rising trend in exports which totalled 1.53 billion dlrs against 1.26 billion in January and, after excluding coffee and oil derivatives, was only slightly below the same month last year. Coffee earnings were down to 110 mln dlrs against 295 mln in February, 1986, because of lower prices, he added. Fendt said although the February results were lower than the average expected for the rest of the year, the government's target of an eight billion dlr surplus for 1987 should be achieved. This would compare with a 1986 surplus of 9.5 billion dlrs. Exports this year are expected to total 22.5 billion dlrs and imports 14.5 billion, he added. In 1986 exports totalled 22.4 billion dlrs and imports 12.9 billion. Fendt said the rise in imports in February to 1.27 billion dlrs from 1.12 billion in February last year was in line with government plans to foster economic growth. Fendt said imports were running at levels well above the traditional average for Brazil. Imports in the first two months of the year, excluding oil and wheat, totalled 1.8 billion dlrs against 1.47 billion in the same 1986 period. This rise reflected industry's need for equipment to raise production and is perfectly compatible with the government's program for economic growth, Fendt added.  
BRITISH FARM MINISTER ATTACKS SUBSIDIES. Farm subsidies and protectionist moves threaten healthy trade on both sides of the Atlantic, Michael Jopling, British minister of Agriculture, Fisheries and Food, warned. "It would not be sensible to provoke another dispute between Europe and the United States," Jopling said in remarks prepared for an evening speech. "But some things are clear and they apply on both sides of the Atlantic. We cannot continue to pile up stocks while world demand shrinks," he said. "Governments must not operate farm policies as if they were purely domestic affairs with no impact on others. They also have to recognize that they cannot in the long run develop a healthy and stable farm sector on the basis of protectionism and excessive subisdies. "And above all, Europe and the United States have too many common interests to make it worthwhile to engage in trade wars and competitive export subsidies which end by benefitting no one." He added, "It is crucial that the United States and the European Community remain friends." Jopling, who is a member of the EC agriculture committee, was in Indiana to visit several farms prior to talks with U.S. officials in Washington later this week. Jopling also criticized a recent proposal still under consideration by the EC for a tax on vegetable and fish oils. He said his government would oppose such a move because "We do not think it is correct that a shortage of funds to support (EC) farmers should be alleviated by raising money at the consumer's expense."  
EC WARNS U.S. AND JAPAN ON TRADE TENSIONS. The European Community (EC) delivered warnings to both Japan and the United States over trade frictions which have hit relations between the Community and its main trading partners. EC foreign ministers meeting here issued a statement deploring Japan's continued trade imbalance and appealed for greater effort by the country to open its markets. Ministers also issued a statement saying they were disturbed by moves in the U.S. to limit imports of textiles and warned that the Community would react to any such moves. EC External Trade Commissioner, Willy De Clercq has already written to his U.S. counterpart, special U.S. Trade Representative Clayton Yeutter, outlining the EC's concerns. The ministers' said they were "very disturbed" by the U.S. moves, adding, "the adoption of such measures would not fail to have a negative effect on the process of multilateral negotiations just started as well as on bilateral relations." Any unilateral U.S. moves would leave the EC no option but to react according to the laws of the world trade body, the General Agreement on Tariffs and Trade (GATT), they said. In a separate statement on Japan, the EC ministers said they "deplore the continued aggravation of the imbalance in trade ... (and) expect Japan to open up its market more." The statement added that the EC continued to insist that the Japanese government must boost imports and stimulate demand. Ministers also called on the European Commission to prepare a report on U.S.-Japanese trade for July this year to enable them to take action where necessary. One diplomat said the call for a report showed ministers were determined not to let the Japanese question drop. "It wil be back on the table again and again," the diplomat said. De Clercq told journalists, "There is a certain nervousness, a growing impatience within the Community on trade relations with Japan." But diplomats said the Community is keen to continue talking with Tokyo to try and solve the problem rather than embark on a costly and damaging trade war.  
S.KOREA SAYS JAPAN COMPLAINS TO GATT ON TRADE PLAN. Japan has complained to the secretariat of the General Agreement on Tariffs and Trade (GATT) that South Korea's five-year plan to cut its trade deficit with Japan breaks GATT rules, Trade Ministry officials here said. They said Japan submitted a report earlier this month alleging South Korea's plan to import less from Japan and more from the U.S. And elsewhere was tantamount to creating non-tariff trade barriers. South Korea unveiled the plan in November. It said it hoped to narrow its trade deficit with Japan to two billion dlrs by 1991. South Korea's trade deficit with Japan was a record 5.45 billion dlrs in 1986, and rose to 752 mln dlrs in the first two months of 1987 from 727 mln in the same 1986 period. The plan envisages giving incentives to importers not to import Japanese goods, and to exporters to sell more to Japan. The officials said they believed the Japanese action, one step short of filing a suit, was designed to bring South Korea to the negotiating table and stop the plan. The Seoul government wants Tokyo to ease various import restrictions and simplify customs inspections for South Korean goods to help reduce the trade deficit.  
JAPAN SAYS U.S.-JAPAN MICROCHIP PACT WORKING. Japanese officials sought to convince the U.S. That a U.S.-Japan pact on microchip trade is working ahead of an April 1 deadline set by the U.S. For them to prove their case. "We are implementing the agreement in good faith and the situation does not run counter to the pact," Osamu Watanabe, Director of the Ministry of International Trade and Industry's (MITI) Americas and Oceanic Division, told foreign reporters. "The effects of the measures we have taken and are taking are emerging in the market place," he said. U.S. Trade officials have repeatedly accused Japanese microchip makers of violating the pact by continuing to sell at below cost in markets outside Japan and the United States. The agreement, signed last September, aimed at halting predatory Japanese pricing policies and increasing U.S. Semiconductor firms' access to the Japanese market. The comments by MITI officials followed a call by Prime Minsiter Yasuhiro Nakasone to clear up any misunderstandings on the U.S. Side about the pact, Watanabe said. Yukio Honda, director of MITI's Industrial Electronics Division, denied that Japanese chipmakers were selling at below cost in third countries. MITI's call to Japanese chip makers last month to cut production of key memory chips in the first quarter of this year has begun to dry up the source of cheap chips for sale in the non-regulated grey market, Honda said. "The grey market exports from Japan are shrinking now, but in contrast U.S. And South Korean companies are expanding market share because of their cheaper prices," Honda said. MITI plans to take further steps to reduce the excess supply of inexpensive chips which developed in Japan after the pact was formed because of a slump in Japanese semiconductor exports to the United States, he added. The ministry will soon release its supply-demand guidelines for the second quarter and suggested production volumes are likely to be lower than that for the first quarter, he said. Despite businessmen's ingenuity in finding ways around any artificial controls, regulation of supply and demand should bring positive results, Watanabe said. "I am optimistic," he added.  
EC WARNS U.S. AND JAPAN ON TRADE TENSIONS. The European Community (EC) yesterday warned Japan and the United States, its main trading partners, that friction over trade issues is affecting the EC's relations with both countries. EC foreign ministers issued a statement deploring Japan's continued trade imbalance and appealed for the country to make a greater effort to open up its markets. They also said they were disturbed by a draft bill before the U.S. Congress that would impose permanent quotas on textile imports and were prepared to react. The U.S. Administration has already distanced itself from the bill. EC External Trade Commissioner Willy De Clercq has written to his U.S. Counterpart, Trade Representative Clayton Yeutter, outlining the EC's concerns. The statement said ministers were very disturbed by U.S. Moves towards protectionism. "The adoption of such measures would not fail to have a negative effect on the process of multilateral negotiations just started, as well as on bilateral relations," it said. Any unilateral U.S. Moves would leave the EC no option but to react according to the laws of the General Agreement on Tariffs and Trade, it said. In a separate statement on Japan, the EC ministers said they "deplore the continued aggravation of the imbalance in trade (and) expect Japan to open up its market more." The statement said the EC would continue to insist that Japan boost imports and stimulate domestic demand. Ministers also called on the EC Commission to prepare a report on U.S.-Japanese trade for July this year to enable them to take appropriate action where necessary. One diplomat said the call for a report showed ministers were determined not to let the Japanese question drop. "It will be back on the table again and again," the diplomat said. De Clercq, talking to journalists during the meeting, said, "There is a certain nervousness, a growing impatience within the Community concerning trade relations with Japan." But diplomats said the EC is keen to negotiate with Tokyo to solve the problem rather than embark on a costly and damaging trade war, and the ministers called for more cooperation with Japan in industry and research.  
JAPAN ALERTS GATT TO SOUTH KOREA IMPORT PLAN. Japan told the General Agreement on Tariffs and Trade that South Korea's five-year import diversification plan violated the spirit of the world trade governing body, a Foreign Ministry spokesman said. The notification came in Japan's answer to a recent GATT questionnaire on unfair trade practices, the spokesman said. In the five-year plan, which starts this year, South Korea aims to reduce its dependency on Japan as a source of imported goods and to increase imports from the U.S. And Europe. Japan's move came after several unsuccessful bilateral negotiations on the plan, the spokesman said. "The notification does not represent anything resembling a formal complaint, nor is it intended to pressure South Korea. It is a routine procedure followed by all other GATT member states."  
DUTCH OFFICIAL WARNS OF MORE TRADE CONFLICTS. Already strained relations between the U.S. And the European Community (EC) are likely to get worse before they get better, director general of the Dutch Economics Ministry's foreign affairs division Frans Engering said. Speaking at an American Chamber of Commerce lunch in The Hague, Engering noted the developing history of crises over steel, citrus and pasta, and warned of more to come. "I consider the strident tone of US declarations on Airbus ill-advised, and the EC fats and oils tax proposal a dangerous provocation," he said. "I feel that we shall probably have to deal with quite a few more crises in the foreseeable future." Not only is the US Congress clearly very determined to get the American balance of payments into better shape, but the risks of brinkmanship are all the greater because the EC has its own constraints in meeting outside pressure, Engering noted. "If we ask ourselves whether it is perhaps inevitable that we keep pushing each other to the brink of actual trade war, then I think the answer is probably yes," he said. In order to reduce these tensions, decision-making in the EC must become less self-centred, and the US Administration will have to exercise the authority to convince Congress and pressure groups of the need for accommodation, he added.  
U.S. TREASURY ANNOUNCES OECD TIED-AID PACT. U.S. Treasury Secretary James Baker said an agreement has been reached by members of the Organization for Economic Cooperation and Development (OECD) to control the unfair trade practice of using tied aid to promote trade. He said in a statement the agreement culminates the Reagan administration's effot to negotiate a virtual end to export credit subsidies. The practice of other governments using tied aid or mixed credits to promote exports has cost the United States lost jobs and lost exports, the Treasury said. The agreement to be implemented in two stages by July, 1988 would ban tied aid credit among industrialized countries and place limits on permitted aid by developing countries. It would also reduce export credits that do not involve aid and reduce credit subsidies permitted for relatively poor countries, the Treasury said. Baker said the agreement imposes particular sacrifices on Japan and praised Japan's willingness to accept the pact as a demonstration of the Japanese government's willingness to take concrete steps to resolve important trade issues.  
OECD AGREES EXPORT CREDIT REFORMS. The western industrialised nations have agreed reforms in rules by which they provide credit for exports to developing countries, the Organisation for Economic Cooperation and Development said. The reforms tighten the rules for the use of foreign aid to subsidise export credits in so-called "mixed credits," the OECD said. The agreement, to be implemented in two stages in July this year and July 1988, means the minimum aid component in mixed credits will be raised to 35 pct from 25 pct, and to 50 pct for credits covering exports to the world's least developed nations. Additionally, a new formula will be used for calculating the aid element in mixed credits, to take account of different interest rates in the exporting countries, the 24-nation OECD, which hosted the reform negotiations, said. Minimum interest rates for officially subsidised trade loans have also been revised with the aim of cutting the subsidies, and ending them completely on loans to relatively rich developing countries by July next year. The reforms follow several years of pressure by the U.S. To stop competitors, notably France and Japan, using foreign aid to subsidise exports, putting U.S. Firms at a disadvantage. OECD officials said the agreement was based on a provisional accord reached in January subject to ratification by member governments. Some governments, including Austria, had linked their final approval to other trade credit issues which would be discussed at a meeting here in mid-April, they added. By raising the minimum amount of aid required in mixed credits the agreement aims to make such hidden subsidies too costly for frequent use. "A major loophole in the General Agreement on Tariffs and Trade has been closed today," a senior U.S. Official here commented.  
ROTTERDAM SIGNS COOPERATION AGREEMENT WITH TOKYO. The city of Rotterdam today signed an agreement in principle to cooperate with the AOMI Cargo Distribution Centre in Tokyo. Acting Mayor Roel den Dunnen said that cooperation between private and public entities in the Tokyo and Rotterdam area, and a fruitful exchange of information have a favourable influence on the flow of goods and services between the two countries. The AOMI Cargo Distribution Center, which will start operating in October this year, signed a similar agreement with Rotterdam's twinned-port of Seattle last September.  
EC WARNS CONGRESS ON NEW TRADE BILL. The European Community (EC) has warned the U.S. House of Representatives that tough trade legislation it is considering could prompt retaliation by U.S. trading partners. The warning was sent in a letter from Sir Roy Denman, head of the EC delegation in Washington, to Dan Rostenkowski, chairman of the House Ways and Means Committee. A copy of the letter was made available to Reuters. Denman told Rostenkowski, an Illinois Democrat, he backed aspects of the bill, such as one backing new talks under the GATT and one excluding protection for the textile industry. But Denman disagreed with other provisions which would require President Reagan to take retaliatory trade action against nations with large trade surpluses with the U.S. and would set new standards for judging unfair foreign trade practices. Denman told Rostenkowski that GATT regulations prohibit member nations from taking unilateral retaliatory action in trade disputes unless the action is GATT-approved. He said "If the Congress makes retaliatory action mandatory, then the United States would be in violation of its international legal obligations and on a collision course with its major trading partners." Denman added that a president should have flexibility in enforcing trade laws, saying "in the last resort, any administration must take its decision in light of the overall national interest." Otherwise, he said, "the risk would be counter-reaction by trading partners of the United States, i.e., retaliation or enactment of mirror image legislation to be employed against imports from the United States." Denman also said Congress could prompt retaliation if it reduced the threshhold of unfair trade by making it easier for firms to file unfair trade practice claims. Retaliation could also be prompted by relaxing standards for findings that imports were injuring U.S. firms. "Changes in these standards must be agreed upon multilaterally. They cannot be imposed by the United States alone on the world trading system," he said. House leaders have rejected a plan by textile-state legislators to add to the trade bill a provision to curb imports of cloth and clothing, similar to a measure passed two years ago but vetoed by President Reagan. There was concern by the leaders that Reagan would veto the entire trade bill because of the textile amendment.  
PERU SHORT-TERM TRADE LINES RISE TO 430 MLN DLRS. peru's short-term foreign trade credit lines have more than doubled to 430 mln dlrs under president alan garcia's 20-month administration. Central bank general manager hector neyra told reporters that many of the credits were for 90-day terms and could be used several times a year. The trade credits stood at 210 million dollars when garcia took office on july 28, 1985, and announced foreign debt payments would be limited to 10 pct of export earnngs. Neyra told reuters that peru was current on interest payments on short-term debt, including the trade credit lines and on about 750 million dollars in so-called  "working capital" credits. Neyra did not specify the source of the trade credit lines.  
PERU SHORT-TERM TRADE CREDIT UP TO 430 MLN DLRS. Peru's short-term foreign trade credit lines, regarded as vital to ensure smooth foreign commercial transactions, have more than doubled to 430 mln dollars under the 20-month government of president Alan Garcia. Central bank general manager Hector Neyra told reporters many of the credits were 90-day. Trade credits were 210 mln dlrs when Garcia took office in 1985 announcing a tough stance limiting foreign debt repayments to 10 pct of export earnings. Neyra told Reuters Peru was current on interest payments on short-term debt, including trade credit lines and on about 750 mln dlrs in so-called  "working capital" credits. Trade credit lines were 880 mln dlrs in 1982, but fell in 1984 when Peru stopped some payments to private foreign banks.  
U.S. HOUSE PANEL VOTES TO EASE EXPORT CONTROLS. A key House panel voted to greatly ease government controls on exports as several House committees moved rapidly toward approval of major changes in trade laws they hope will help solve U.S. trade woes. The House Foreign Affairs Subcommittee on International Economic Policy voted to direct the administration to cut the list of controlled exports by 40 per cent by removing items no longer considered important to U.S. military security. Industries had complained they were losing sales to foreign competitors who were allowed to export freely products U.S. companies could not sell abroad. The issue has been the subject of administration debate. The Commerce Department had held that unnecessary restrictions impeded U.S. exports while the Defense Department said current controls should be retained but better administered. Four congressional panels met today to consider portions of a wideranging trade bill that intends to help U.S. companies sell more products abroad and to fight unfair foreign trade practices. Their separate proposals, some of them conflicting, will be woven by House Democratic leaders into a final trade bill for a vote by the full House in late April. Sparked by the proposal of Fujitsu Ltd. to take controlling interest in Schlumberger Ltd's Fairchild Semiconductor Corp., the House Energy and Commerce subcommittee on Commerce voted to expand Reagan's authority to block foreign takeovers of U.S. companies. Reagan would be able to block any takeover found to be damaging to U.S. economic or national security interests. "We are losing our semiconductors which are at the heart of our national security," subcommittee chairman James Florio, a New Jersey Democrat said. The subcommittee also called for the administration to consider retaliation against Japan for its restrictive government procurement practices. The retaliation could be triggered by a requirement that the administration investigate whether U.S. companies were treated unfairly and whether they have been barred from bids on lucrative public works projects such as the eight billion dlr Kansai airport construction. U.S. firms have complained they were not allowed to bid on its construction. At the urging of the U.S. recording industry, the subcommittee agreed to bar imports of a new Japanese product--digital audio recorders. Meeting in closed session, the House Ways and Means Committee agreed to allow President Reagan to retaliate against foreign countries that refuse to open their markets to U.S. telecommunications products. Congressional aides said the committee also agreed U.S. companies would be allowed to press for relief from imports of counterfeit products made in violation of U.S. copyright and patent laws.  
JAPAN MARCH INTERIM TRADE SURPLUS FALLS. Japan's customs-cleared trade surplus fell to 1.89 billion dlrs in the first 10 days of March from a 1.91 billion surplus a year earlier, the Ministry of Finance said. The March interim surplus compared with a 1.70 billion dlr surplus in the same February period. FOB exports in the first 10 days of March rose 5.8 pct from a year earlier to 5.50 billion dlrs and CIF imports rose 9.7 pct to 3.61 billion. The average yen/dollar rate used for the statistics was 153.67 yen against 181.23 a year earlier.  
INDIA TRADE DEFICIT FALLS. India's trade deficit is provisionally estimated at 58.34 billion rupees in the first 10 months of fiscal 1986/87 ending March, compared with 70.62 billion in the year ago period, the Commerce Ministry said. Exports rose in the latest period to 100.75 billion rupees from the a year earlier 86.09 billion and imports to 159.09 billion from 156.71 billion in the period, the figures show. The trade deficit for all of 1986/87 is provisionally estimated at around 70 billion rupees from an estimated record 87.47 billion in 1985/86 and actual 53.18 billion in 1984/85, Commerce Minister P. Shiv Shanker told reporters last month .  
CHINA, TAIWAN TRADE VIA HONG KONG FELL IN 1986. The value of trade between China and Taiwan via Hong Kong fell 13 pct to 7.45 billion H.K. Dlrs in 1986 from 8.59 billion dlrs in 1985, Hong Kong's Census and Statistics Department said. Taiwan's exports to China through Hong Kong fell to 6.33 billion dlrs last year from 7.69 billion in 1985, while China's exports rose to 1.12 billion dlrs from 904 mln dlrs. Economists in Hong Kong told Reuters that China's controls on scarce foreign currency hurt its imports of Taiwanese consumer goods, such as electric fans and television sets. Herbal medicine and textiles were among China's chief exports to Taiwan. Taiwan does not allow direct trade with China and indirect trade is routed mainly through Hong Kong.  
JAPAN TO ASK CHIP MAKERS TO SLASH OUTPUT FURTHER. The Ministry of International Trade and Industry will ask Japanese computer microchip makers to further slash output in the second quarter in an effort to save its semiconductor pact with the United States, MITI officials said. The United States has accused Japan of reneging on the semiconductor pact by failing to stop the flow of cut-price Japanese chips to Asian markets. Washington has threatened to take retaliatory action after April 1. The pact, agreed last year, calls on Japan to stop selling cut-price chips in world markets and to increase its imports of American chips to reduce some of its huge trade surplus. MITI, anxious to salvage the bilateral agreement, has been pressing chip makers to limit production in the hope that will boost domestic chip prices and reduce the incentive to export. Last month, the ministry asked Japanese chip makers to reduce first quarter output by 10 pct. To meet that request, they had to slash production by 20 pct over the final six weeks of the first quarter. If that reduced production level were maintained through to the end of June, second quarter output would come in 10 pct below that of the first three months of the year. MITI officials, who declined to be identified, said the ministry has not yet decided on the extent of the second quarter cutback. One said that Japanese chip makers are losing ground in Asia to South Korean and U.S. Competition just as markets there are picking up. MITI has been criticized privately by some Japanese semiconductor makers for what they see as heavy-handed attempts to ensure the success of the Japan/U.S. Chip pact.  
JORDAN, SUDAN SIGN 100 MLN DLR BARTER TRADE PACT. Jordan and Sudan signed a barter trade agreement under which they will exchange 100 mln dlrs' worth of goods a year, Sudanese officials said. They said Sudan will export corn, sesame, peanuts, spices and cow hides, while Jordan will export cement, tomato puree, chemicals and pharmaceuticals.  
ECONOMIC SPOTLIGHT - U.S. DEFICIT WITH NICs. The U.S. trade deficit with Taiwan and Korea is expected to widen this year, despite some economic and currency adjustments by the two newly industrialized countries, economists said. "The surpluses that Taiwan and Korea ran with the U.S. in 1986 will get bigger. This time next year, the U.S. will be screaming at those countries about their exports," said Steve Cerier of Manufacturers Hanover Trust Co. Taiwan is currently the third biggest exporter to the U.S. after Japan and Canada, while Korea is the seventh largest. Faced with heightened protectionist sentiment in Congress, the Reagan administration has been stepping up the rhetoric against Taiwan and Korea, urging those countries to allow their currencies to appreciate and lift impediments to free trade. The thrust has shifted to those newly industrialized countries (NICs) amid signs the dollar's steep drop against the currencies of Japan and most EC nations -- previously the main focus of the U.S. drive to cut its trade gap -- is beginning to close the competiveness gap for American goods. U.S. Treasury secretary James Baker said recently that he expects a reduction in Japan's trade surplus this year. But U.S. manufacturers still are losing markets on their own doorstep to Taiwan and Korea, whose currencies have not risen as much as the yen and the mark. As major beneficiaries of soft oil prices and with low labor costs, Taiwanese and Korean exporters are well-placed to take up the slack. "In 1986, the fashionable comment in Washington was Japan-bashing. Now it's NIC-bashing," said Robert Chandross, of Lloyds Bank PLC. Asia's four main NICs -- Hong Kong, South Korea, Singapore and Taiwan -- accounted for almost one-fifth of the overall 170 billion dlr U.S. merchandise trade deficit for 1986. The U.S. trade gap with Taiwan rose to 15.7 billion dlrs in 1986 from 13.1 billion in 1985, while the bilateral trade deficit with South Korea grew to 7.1 billion from 4.8 billion. And preliminary U.S. data show that the growth trend is continuing. The U.S. trade shortfall with Taiwan was 1.6 billion dlrs in January, up 24.4 pct from a year earlier. The gap with Korea was 700 mln dlrs, up 24.8 pct from a year ago. Lately both nations have said they will take steps to defuse incipient trade tensions. Korea said it is choosing many of the 122 items on which the U.S. wants it to cut import tariffs in order to deflect pressure for currency revaluation. Still, South Korean trade minister Rha Woong Bae said last week that Korea would maintain a trade surplus for three to five years as a way to cut its 44.5 billion dlr foreign debt. For its part, Taiwan said in January that it will cut tariffs on 1,700 goods sometime in the second half of 1987 and try to diversify exports. But vice economic minister Wang Chien-Shien said last month that he still does not expect Taiwan's trade surplus with the U.S. will fall in 1987. The NICs have made deep inroads into markets for textiles and electronic goods. But Korea is raising its profile in the area of "big-ticket" manufactured goods, notably cars. Korea expects its auto exports -- mostly for North America -- to balloon to 675,000 units in 1987 from zero in 1985. "The NICs' exports are almost all manufactured goods. When their exports rise it hits the heart of the U.S. manufacturing base. It cuts directly to us and to our customers," said Bob Wendt, manager for economic studies at Bethlehem Steel Corp. The U.S. takes 90 pct of Korea's computer products exports, 72 pct of its electrical appliances and 65 pct of its telecommunications equipment. A recent study by Morgan Guaranty Trust Co says Taiwan and South Korea are the most pressing trade issue for the U.S. While Hong Kong and Singapore run trade surpluses with the U.S., these are offset by their deficits with other countries. But Taiwan and, to a lesser extent, South Korea, stand in marked contrast. Both of these nations have moved rapidly into large bilateral surplus with the U.S. and major overrall trade and current account surpluses, the Morgan study says. Morgan expects Taiwan's overall trade surplus to grow to 18.5 billion dlrs in 1987 from 15.2 billion last year, and Korea's to increase to 6.5 billion dlrs from 3.5 billion. Concern about the NICs is not confined to the U.S. "A lot of Korea and Taiwan's exports to the U.S. have been at Japan's expense," said Richard Koss at General Motors Corp. February's Paris meeting of six major industrial powers exorted NICs to lower trade barriers and revalue currencies. But this two-pronged approach has drawn little response from the two nations so far and, in any case, will only work with a sizeable lag, economists say. The U.S. has not said how much it thinks the Taiwan's and Korea's currencies should climb. The Taiwan dollar, which is pegged to the U.S. dollar, has risen about 15 pct since September 1985 while the Korean won has risen about five pct. But in real terms the Taiwan dollar has been flat against the U.S. unit and the won has lost seven pct, economists say. "We've not seen any lessening of competition from those countries that we can attribute to currency changes," said Bethlehem Steel's Wendt. And so far, U.S. pleas for Taiwan and Korea to use their hefty export earnings to import more have had little effect. Moreover, it is uncertain how far U.S. protectionism will get given the administration's free-trade stance. "It's hard to see that anything will be passed much before year-end. And then the question is, will it have teeth?" one economist said.  
EC OFFICIAL FAULTS U.S. TRADE BILL. Sir Roy Denman, Head of the EC Delegation in Washington, said pending U.S. trade legislation is a misguided attempt to deal with the nation's trade deficit and will spark retaliation if passed in its present form. "To think that you can deal with a trade deficit by legislation is a mistake," he told the Foreign Trade Association here. Denman told reporters that possible retaliation, which he warned of in a letter to House Ways and Means Committee Chairman Dan Rostenkowski, would not necessarily be on a product-for-product basis. "Retaliation does not have to be matched product to product," Denman said. He said in the case of textiles import restrictions, however, retaliation would be against U.S. textile exports. "Certainly, if restrictions were imposed on European exports of textiles to the U.S., the Community would be likely to retaliate with restrictions on U.S. textile exports to Europe," Denman said. He also took exception to U.S. proposals to require countries with large current account surpluses with the U.S. to cut those surpluses or face special tariffs. "This would conflict with international obligations, throw a large wrench into the current round of trade negotiations and could easily boomerang," he warned of the tariff proposals. Denman also took exception to U.S. efforts to seek reciprocity in specific trade sectors. "Forcing reciprocity in one sector by imposing barriers would simply lead to retaliation from the other party," he said, adding that overall reciprocity can only be achieved by trading off disadvantages in one sector for advantages in another.  
SENATE WANTS JAPAN SEMICONDUCTER PACT ENFORCED. The U.S. Senate has unanimously called for President Reagan immediately to force Japan to live up to a pledge to stop dumping its microchips and open its markets to U.S. Chipmakers. The Senate voted 93 to 0 to urge Reagan to impose penalties on Japanese high-technology products containing semiconductors in retaliation for what it sees as Japan's violations of the semiconductor pact. While the measure does not bind Reagan to any action, Senate leaders said its adoption would warn Japan stiffer legislation would be considered if the violations continue. "We want to send a message to Japan to let it know how the Senate feels about this matter," Senate Democratic Leader Robert Byrd told the Senate. Senate Finance Committee chairman Lloyd Bentsen told the Senate the measure was not aimed at retaliation but at correcting Japan's unfair trade practices. A key House trade lawmaker, Representative Richard Gephardt also announced he would seek to force Japan and other countries with huge trade surpluses to slash their surplus by 10 pct a year for three years.  
TAIWAN'S EXPORT ORDERS FALL IN FEBRUARY. Export orders for Taiwanese products fell 1.37 pct to 3.58 billion U.S. Dlrs in February from 3.63 billion in January, but rose nearly 43 pct from 2.51 billion a year earlier, an Economic Ministry official said. He attributed the fall to the rising Taiwan dollar. February orders for electric and electronic goods were 619 mln U.S. Dlrs, up from 574 mln in January and 370 mln in February 1986. Garment orders were 324 mln dlrs against 383 mln and 283 mln while footwear orders were 297 mln compared with 333 mln and 200 mln.  
TAIWAN PLANS MISSION TO CLOSE TRADE GAP WITH U.S.. Taiwan's leading industrial organisation said it will send its first buying mission to the U.S. Later this year in an effort to reduce the country's trade surplus with Washington. A spokesman for the Chinese National Federation of Industries told Reuters the mission was part of a broader plan to switch large purchases to the U.S. From Japan. The Federation groups all of Taiwan's major industrial associations. Last year its members purchased about 4.5 billion U.S. Dlrs worth of industrial products from Japan and about 1.8 billion from the U.S. The spokesman said Federation members were now discussing the volume of business they could transfer to America. He said they had drawn up a list of about 80 industrial products they would be shopping for in the U.S. During the buying mission in September, but he could give no figure on how much would be spent. A Board of Foreign Trade official told Reuters the government would send two buying missions to America between June and July this year and might send others later. Taiwan's trade surplus with the U.S. Rose to a record 13.6 billion dlrs last year from 10.2 billion in 1985.  
SENATE WANTS JAPAN SEMICONDUCTER PACT ENFORCED. The U.S. Senate has unanimously called for President Reagan immediately to force Japan to live up to a pledge to stop dumping its microchips and open its markets to U.S. Chipmakers. The Senate voted 93 to 0 to urge Reagan to impose penalties on Japanese high-technology products containing semiconductors in retaliation for what it sees as Japan's violations of the semiconductor pact. While the measure does not bind Reagan to any action, Senate leaders said its adoption would warn Japan stiffer legislation would be considered if the violations continue. "We want to send a message to Japan to let it know how the Senate feels about this matter," Senate Democratic Leader Robert Byrd told the Senate. Senate Finance Committee chairman Lloyd Bentsen told the Senate the measure was not aimed at retaliation but at correcting Japan's unfair trade practices. A key House trade lawmaker, Representative Richard Gephardt also announced he would seek to force Japan and other countries with huge trade surpluses to slash their surplus by 10 pct a year for three years.  
JAPAN SAYS OECD STUDY ON SUBSIDIES STILL ONGOING. Japanese Agriculture Ministry officials said a study of agriculture subsidies by the Organisation for Economic Cooperation and Development, OECD, is still under way and will be completed sometime next month. The officials said the study has been inaccurate so far, and they said Japan would comment on the final results. A Reuter report from Washington yesterday said the study has found that Japan has the highest agriculture subsidies in the world and that dairy farmers benefit more than any other commodity producers from subsidies. The study has not been officially released due to objections from some countries. Japan has withdrawn its objection and decided to accept the release of the study, the agriculture ministry officials said. OECD directors are expected to approve the release at a meeting in mid-May. One agriculture ministry source said the study so far was based on the years 1979-81. Japanese subsidies have dropped sharply since then, partly because of tight budgetary policy, and foreign currency factors have also changed, he said. "The study is ... Unfair and unacceptable because it does not take account of various differences in farming conditions in each country, such as geography," the source said. He said it is highly likely that the final study will show Japan has the highest farm subsidies in the world. "This would increase foreign pressure to open Japan's farm market further, but this would have little impact on Japan's agriculture policy," he said, without giving further details. A main purpose of the study is to clarify export subsidies by major exporting nations like the United States and the European Community, but Japan is a major importer, he said.  
EC AND COMECON ENDS TALKS WITH PROGRESS. The European Community (EC) and Soviet-led Comecon ended talks here, having made progress on setting up formal trade relations, but no breakthrough because of Comecon's refusal to recognise West Berlin as part of the EC, delegates said. Negotiators were trying to reach agreement on the draft of a joint declaration setting up official relations after 30 years of mutual non-recognition. John Maslen, head of the EC delegation, told Reuters as he emerged from the final session: "We made some progress, but we have called for another meeting." Officials, who asked not to be named, said the Comecon team had refused to accept a clause in the draft declaration which would recognise West Berlin as part of the 12-nation EC. Under the 1957 Treaty of Rome all contracts and agreements signed by the Community must contain this territorial clause stipulating West Berlin is an integral part of the EC. An EC negotiator taking part in the three-day talks said: "We wanted the territorial clause in, but Comecon said no." A joint statement issued after the talks said progress was made towards clarifying positions, but another meeting would be necessary to complete the work. Any decision in principle to set up relations would require approval by the Community's Council of Ministers and by the executive committee of Comecon. Zdzislaw Kuroski, deputy director of Comecon, who heads the East bloc delegation, told Reuters ahead of today's session: "We have narrowed our differences on a range of questions, but not on all questions." Asked whether Comecon would accept EC insistence that any joint declaration stipulate West Berlin as part of the Community, he replied: "This question is not contained in the draft which our side presented." West German diplomats said they would insist on including the clause on West Berlin in any EC-Comecon agreement. The talks followed an earlier round between the two trading blocs here last September and the first-ever direct talks between the EC and the Soviet Union on establishing diplomatic relations in January. The EC trades with individual Comecon member states despite non-recognition of Comecon. Last year, the EC had a five billion dlr trade deficit with East European states, about half the deficit of the previous year, due to a drop in the price of Soviet oil imported by the EC.  
EC SAYS U.S. BROKE TRADE RULES IN AKZO-DUPONT ROW. The European Community Commission has charged the United States with breaking international trade rules by excluding Dutch-made fibres from the U.S. Market and said it would take the issue to the world trade body GATT. In the latest of a series of trade disputes with Washington, the executive authority alleged that a section of the U.S. Tariff Act was incompatible with the GATT (General Agreement on Tariffs and Trade) because it discriminated against imported products in favour of domestically-produced goods. The Commission said it would ask Geneva-based GATT to rule on whether the section in question, which officials said had proved a barrier to many EC exporters, conformed to its rules. Commission officials did not rule out retaliatory measures if, after a GATT decision against it, Washington failed to bring the disputed section into line with international rules. The executive's decision to go to GATT follows a complaint to it by the Dutch company Akzo <AKZO.AS>, whose "aramid" synthetic fibres have been banned from the U.S. Market because of charges by the U.S. Firm <Dupont> that the fibres violate the American company's patents. Akzo alleged that the ban, imposed by the U.S. International Trade Commission (ITC), was discriminatory and incompatible with GATT provisions. The dispute centres on the fact that section 337 of the U.S. Tariff Act gives the ITC jurisdiction  over imported products. The EC Commission charged that EC producers did not have the same possibilities for defending themselves before the ITC as they would have in a normal U.S. Court. "Consequently the procedure followed...Is less favourable than that which takes places in normal courts of law for goods produced in the United States," it said in a statement.  
GATT TO DEBATE U.S. CHARGES OF AIRBUS SUBSIDIES. The U.S. Will pursue its complaint that European governments unfairly subsidise the Airbus Industrie aircraft consortium in proceedings at the GATT civil aircraft committee, a GATT spokesman said today. The U.S. Presented its case for the first time to the aircraft committee of the General Agreement on Tariffs and Trade (GATT) during a special two-day session ending today. GATT rules cover some 80 pct of world commerce. The 20-member committee agreed to open debate on the U.S. Complaint, starting with informal consultations and then holding a special session in July, trade officials said. "The tension has eased," the permanent trade ambassador of the 12-member European Community Tran Van Thinh told reporters. "The U.S. Has decided to go through proper channels." U.S. Trade officials again made clear their anger over what they call unfair government support for Airbus, voiced during a visit to European capitals in February. In a letter calling for the special committee meeting, Washington charged France, West Germany, the U.K., Spain and the EC Commission with unfair practices on behalf of Airbus. The U.S. Charges that the Europeans are violating rules laid down in the 1979 Agreement on Trade in Civil Aircraft. Washington presented its reading of rules on inducement to purchase aircraft and support for development of airlines during the special session and asked the committee to confirm its view. Official sources in the delegations said the U.S. Views would be considered during the informal consultations but the Europeans would also be free to bring up any complaints against American civil aircraft practices. Some delegates said the U.S. Position appeared to give such broad interpretation to the rules as to suggest that the civil aircraft accord needed re-negotiating. All these matters would be considered during the informal meetings.  
JAPAN OPENS HOME MARKET TO U.S. FISH. Japan has agreed to drop barriers to American-caught herring and pollock, opening the way for shipments that could reach 300 mln dlrs annually, U.S. Trade Representative Clayton Yeutter announced. Yeutter said the accord was reached after extensive bilateral negotiations that ended earlier today in Tokyo. He said the Commerce Department estimated U.S. shipments of processed pollock products and herring should rise to 85 mln dlrs this year and to more than 300 mln dlrs annually in later years. There was no immediate assessment of the value of current U.S. shipments, but officials said the pact would lift quotas to the point that Americans would be able to ship nearly all the pollock and herring ordered by Japanese firms. At the same time, Yeutter said Washington was temporarily suspending a complaint with the General Agreement on Tariffs and Trade (GATT) that Japan was unfairly curbing imports of the two fish. He said the complaint would be reviewed later this year after an assessment to see if Japan lived up to the agreement.  
CANADA'S CLARK SEES TRADE AS MOST URGENT PROBLEM. Trade is the most urgent problem facing U.S.-Canadian relations because of a pressing need to reach a new bilateral pact within the coming months, Joe Clark, Canadian secretary of state for external affairs, said. Negotiators for the two countries have been meeting for more than a year in an effort to work out an agreement. "The most urgent problem now is the trade question because that has to be decided within the next 10 months," Clark told the Commonwealth Club of California. "We have a fast track authority from your Congress for approval or rejection of whatever the negotiators achieve." Clark said that, as a practical matter, an initial agreement must be reached by late September or early October. He listed environmental questions, particularly acid rain, and defense as the second and third most important bilateral issues facing Ottawa and Washington. On Wednesday, President Reagan announced that he will seek 2.5 billion dlrs from Congress to address the acid rain problem. Some interpreted the move as a goodwill gesture in advance of his annual meeting, on April 5-6 in Ottawa, with Prime Minister Brian Mulroney. In a question-and-answer session with the public affairs group, Clark said that the two countries must find better mechanisms for resolving their trade disputes. "This rash of countervailing actions, where we acted on corn and you acted on soft wood and we both said they were quasijudicial -- the dispute resolution mechanisims in place now are not working adequately in either of our interests," he said. Ottawa also is seeking to change some of Washington's rules on government procurement that penalize Canadian businesses, he said. "There are a number of Canadian companies that, in order to secure substantial contracts in the United States, have had to move their head offices out of our country into your country because you have national procurement requirements," he said. In turn, he added, the United States would like to change some of the procurement requirements that exist at the provincial government level in Canada. Clark declined to forecast the outcome of the discussions. "What will come out of it remains for the negotiators, in the first instance, to propose, and then governments and congresses will have judge," he said. In his prepared remarks, Clark said that the United States has tended to take Canada for granted, although it exports to its northern neighbor more than twice what it exports to Japan. "Yet you bought almost 10 per cent more from Japan last year than you bought from Canada," he said. REUTER  
U.S. SENATORS SAY SANCTIONS LIKELY ON MICROCHIPS. The United States will likely impose sanctions soon on imports of Japanese microchips, senators said today after a private meeting with Commerce Secretary Malcolm Baldrige. Although the senators said Baldrige told them no decision would be taken until a final determination is made on whether Japanese microchips were dumped in the United States, they said they were virtually sure Japan would face penalties. President Reagan's trade policy advisory group, of which Baldrige is a member, will meet on the issue Wednesday. "I am confident we will see action taken," Sen. John McCain, an Arizona Republican, told reporters. "I am expecting sanctions at least, and even more than sanctions," Sen. Pete Domenici, a New Mexico Republican, said. The senators, several congressmen and U.S. semiconductor industry representatives met with Baldrige and State Department officials to discuss Japan's alleged violations of a September 1986 agreement to stop dumping its microchips in the United States and other countries. They recommended Japanese firms be penalized through tariffs or import duties over the next six to 12 months for continuing to dump microchips. The violations were worth 100 mln dls to the Japanese semiconductor industry, they said. Asked if Baldrige intended to recommend sanctions, Sen. Pete Wilson told reporters, "The clear import of what he said is that there will be." "Japan can't just say they will comply. We think sanctions must be applied," for past violations of the agreement, the California Republican said. The semiconductor industry produces microprocessor chips which are used in high technology products ranging from radios to defence missile guidance systems. Sen. James McClure, an Idaho Republican, said Baldrige told them the administration had not made a final determination that Japanese companies had dumped semiconductor microchips below the cost of production in the United States or other countries. But McClure said senators told him, "There is no doubt dumping is going on," based on evidence such as invoices of purchases of the Japanese products. The two countries signed a pact last September in which Japan agreed to stop selling its microchips in the United States and other countries below production costs and to allow the U.S. semiconductor industry access to the Japanese market. In return, the United States waived its right to impose import duties on the Japanese microchips. Japanese officials have said they have lived up to the pact and have asked Japanese chip-makers to further slash output to save the pact. Japan has frequently been the target of congressional discouragement over last year's record 169-billion-dlr trade deficit. Tokyo had a 59-billion-dlr surplus with the United States last year and had large surpluses with other countries. The Senate yesterday unanimously passed a resolution calling for action against Japan for violations of the pact since September. The resolution will be introduced in the House next week by Rep. Bob Matsui, a California Democrat.  
NEXT WORLD TRADE NEGOTIATIONS MUST SUCCEED - NZ. Ministers from more than 20 nations were told by New Zealand that the next international negotiations on liberalising trade would be the last this century and the cost of failure could not be measured. Trade minister Mike Moore told his colleagues at a welcoming ceremony before two days of talks here that great progress had been made in preparing for the negotiations which must not be sidetracked. "We live in troubled and dangerous times for the world trading system," he said. "We have seen that the failure of the world trading system has caused great depression and conflict in the past. Our failure to maintain the momentum will be at great cost to us all," Moore said. He added: "The cost of failure is beyond calculation. It is our last hope and best opportunity this century. We will not get another chance before the year 2000." The ministers are in New Zealand to review world trade since the "Uruguay round" talks last Sepember. The meeting is also part of preparations for a full-scale conference of the General Agreement on Tariffs and Trade (GATT) in Venice in June. The Uruguay meeting is considered by most countries to have been particularly successful, with northern hemisphere countries managing to have service industries such as banking and insurance included in the next full round. The southerners' goal of including agricultural and tropical products also was met. The meeting at this North Island tourist resort is described by participants as informal and no declaration is expected. Moore said one aim was to "instil a sense of political urgency to avert potential economic tragedy." Another was to seek ways of popularising freer trade to people who felt the pain of readjustment but could not see the benefits, as well as preventing "bush fires of confrontation while we proceed with orderly negotiations." The meeting is being attended by 25 overseas delegations including representatives of GATT and the Economic Community. The delegates include U.S. Trade Representative Clayton Yeutter. American sources say he is ready to state that the best way to reverse protectionist sentiment in the United States is to implement four key Uruguay proposals: -- an end to agricultural subsidies; -- inclusion of trade in services and investments in GATT regulations; -- tightening of restrictions on pirating of so-called intellectual property such as trademarks, patents and copyrights; -- new rules to resolve trade disputes among GATT's 92 member states. Earlier, New Zealand sources had said French Foreign Trade Minister Michel Noir had pulled out of the informal GATT talks for domestic political reasons. Cabinet chief Bernard Prauge will lead the French delegation.  
GATT SUCCESS WILL TAKE PRESSURE, N.Z. MINISTER. Long term pressure by trade ministers is necessary if the current Uruguay round of talks on the General Agreement on Trade and Tariffs (GATT) is to succeed, New Zealand's Overseas Trade minister Mike Moore said. Moore told the opening meeting of trade ministers from 22 nations gathered for informal talks on the GATT that ministers "need opportunities to keep in touch and to consider how the political problems inherent in an exercise like this one can be faced and resolved." Moore said the Taupo meeting is one of a series of such international gatherings, which includes the OECD ministerial meeting in May and the G-7 meeting in Venice in June, enabling ministers to maintain contact. World trade conditions are getting better not worse, he said. He said New Zealand is "moving rapidly and of our own initiative in the direction of liberalisation, and I warn you we shall be looking for partners."  
YEUTTER SEES U.S., JAPAN VERGING ON TRADE CONFLICT. The United States and Japan are on the brink of serious conflict on trade, especially over semiconductors, Japanese unwillingness for public bodies to buy U.S. Super-computers, and barriers to U.S. Firms seeking to participate in the eight billion dlr Kansai airport project, U.S. Trade Representative Clayton Yeutter said. He was talking to reporters yesterday on the eve of a two-day meeting of trade ministers which will review progress made by committees set up after the Uruguay meeting last September launched a new round of GATT (General Agreement on Tariffs and Trade) talks. European Community (EC) commissioner Willy de Clercq meanwhile told reporters conflict between the world's three major trading and economic powers -- the EC, the U.S. And Japan -- set a poor example for other members of GATT. Australian Trade Minister John Dawkins told the reporters bilateral retaliation at the enormous expense of the rest of the world was no way to solve trade disputes. New Zealand trade minister Mike Moore told his colleagues great progress had been made in preparing for the current round of GATT negotiations which must not be sidetracked. The ministers have said they want to maintain the momentum towards fresh negotiations or avert serious trade conflicts. Yeutter said the problem with international trade talks was that they tended to get bogged down for years. "Countries don't get very serious about negotiating until the end of the day which is, maybe, five or six years in the future." He also said he did not consider the new U.S. Congress as protectionist as it was 18 months ago. "That's a very healthy development," he added."If you asked me about that a year or 18 months ago I would have said that it was terribly protectionist." "Members of Congress, that is the contemplative members of Congress, have begun to realise protectionism is not the answer to the 170 billion dlr trade deficit," Yeutter said. "They've also begun to realise that you cannot legislate solutions to a 170 billion dollar trade deficit so they are more realistic and, in my judgement, more responsible on that issue than they were 12 or 18 months ago." He added, "Whether that will be reflected in the legislation that eventually emerges is another matter."  
PHILIPPINES POSTS 68 MLN DLR JANUARY TRADE DEFICIT. The Philippines posted a trade deficit of 68 mln dlrs in January, compared with deficits of 57 mln in January 1986 and 28 mln in December, government figures show. The National Census and Statistics Office (NCSO) said imports of 436 mln dlrs in January were up from 371 mln in January 1986 and 393 mln dlrs in December, while exports of 368 mln were up on the 314 mln in January 1986 but lower than December's 421 mln. The country's 1987-92 medium-term development plan targets a 9.8 pct average annual growth in exports and a 10.7 pct growth in imports, the NCSO said.  
JAPAN SAYS IT TRYING TO EXPAND DOMESTIC DEMAND. Japan has assured a meeting of trade ministers it is making every effort to expand domestic demand and restructure its economy. Japanese trade representative Tsomu Hata told an informal General Agreement on Tariffs and Trade (GATT) meeting that, in addition to demand boosting measures adopted last September, a comprehensive economic program will be prepared after the 1987/88 budget is approved. Hata, speaking at the first session of the two-day meeting, said agriculture is no exception to the goal of restructuring the economy, but did not elaborate. Hata said protectionist pressures in the international economy are as strong as ever, reflecting financial deficits, payment imbalances and serious unemployment in many countries. Despite great potential, developing economies are still confronted by grave difficulties, particularly debt, he added. The basis for the talks is the GATT ministerial declaration last September in Punta del Este, Uruguay, and the subsequent trade negotiating plan agreed in Geneva. "It is essential that we first reaffirm here our commitment to implementing that plan as scheduled," Hata said. Hata added it is not constructive to speed up negotiations in some areas at the expense of others. In order to rebuild the free trade system, it is important for each participant to have domestic policies that will serve this end. As part of its contribution, Japan plans in April to fundamentally improve its generalised system of preferences for industrial and mining products to make Japan's domestic market more open to developing countries, he said.  
AUSTRALIAN MINISTER SAYS AGRICULTURE GATT PRIORITY. Australian Trade Minister John Dawkins said if the General Agreement on Tariffs and Trade (GATT) does not give high priority to agricultural trade reform it will be neglecting the area of greatest crisis. In a statement to the informal GATT trade ministers conference here he said agriculture is a problem which involves all countries and seriously affects the debt servicing abilities of a number of developing countries. He said major countries should be showing leadership on this problem. "We will be giving close attention to the processes in the OECD (Organisation of Economic Cooperation and Development) and elsewhere leading to the Venice economic summit where we will be looking to the participants to adopt a strong commitment to agricultural trade reform," Dawkins said. The Venice summit is scheduled for June. He said Australia's interests in the Uruguay Round, the eighth under the GATT, are wide ranging. Dawkins said he sees the round as providing a timely opportunity to secure further meaningful trade liberalisation in all sectors and to restore confidence in the multilateral system. Dawkins said initial meetings of the negotiating groups established in Geneva after the GATT declaration last September in Punta del Este, Uruguay, have made a reasonable start, but it is vital that trade ministers maintain the pressure on these processes. "We must see that the commitments made at Punta del Este on standstill and rollback are carried into practice." The standstill and rollback of protection offers the global trading system a chance to hold and wind back protection during the negotiations which are expected to last up to four years, he said.  
YEUTTER SEES U.S., JAPAN VERGING ON TRADE CONFLICT. The United States and Japan are on the brink of serious conflict on trade, especially over semiconductors, Japanese unwillingness for public bodies to buy U.S. Super-computers, and barriers to U.S. Firms seeking to participate in the eight billion dlr Kansai airport project, U.S. Trade Representative Clayton Yeutter said. He was talking to reporters yesterday on the eve of a two-day meeting of trade ministers which will review progress made by committees set up after the Uruguay meeting last September launched a new round of GATT (General Agreement on Tariffs and Trade) talks. European Community (EC) commissioner Willy de Clercq meanwhile told reporters conflict between the world's three major trading and economic powers -- the EC, the U.S. And Japan -- set a poor example for other members of GATT. Australian Trade Minister John Dawkins told the reporters bilateral retaliation at the enormous expense of the rest of the world was no way to solve trade disputes. New Zealand trade minister Mike Moore told his colleagues great progress had been made in preparing for the current round of GATT negotiations which must not be sidetracked. The ministers have said they want to maintain the momentum towards fresh negotiations or avert serious trade conflicts. Yeutter said the problem with international trade talks was that they tended to get bogged down for years. "Countries don't get very serious about negotiating until the end of the day which is, maybe, five or six years in the future." He also said he did not consider the new U.S. Congress as protectionist as it was 18 months ago. "That's a very healthy development," he added."If you asked me about that a year or 18 months ago I would have said that it was terribly protectionist." "Members of Congress, that is the contemplative members of Congress, have begun to realise protectionism is not the answer to the 170 billion dlr trade deficit," Yeutter said. "They've also begun to realise that you cannot legislate solutions to a 170 billion dollar trade deficit so they are more realistic and, in my judgement, more responsible on that issue than they were 12 or 18 months ago." He added, "Whether that will be reflected in the legislation that eventually emerges is another matter."  
NEXT WORLD TRADE NEGOTIATIONS MUST SUCCEED - NZ. Ministers from more than 20 nations were told by New Zealand that the next international negotiations on liberalising trade would be the last this century and the cost of failure could not be measured. Trade minister Mike Moore told his colleagues at a welcoming ceremony before two days of talks here that great progress had been made in preparing for the negotiations which must not be sidetracked. "We live in troubled and dangerous times for the world trading system," he said. "We have seen that the failure of the world trading system has caused great depression and conflict in the past. Our failure to maintain the momentum will be at great cost to us all," Moore said. "The cost of failure is beyond calculation. It is our last hope and best opportunity this century. We will not get another chance before the year 2000," he added. The ministers are in New Zealand to review world trade since the "Uruguay round" talks last September. The talks are also part of preparations for a full-scale June meeting of the General Agreement on Tariffs and Trade (GATT) in Venice. The Uruguay meeting is considered by most countries to have been particularly successful, with northern hemisphere countries managing to have service industries such as banking and insurance included in the next full round. The southerners' goal of including agricultural and tropical products also was met. The meeting at this North Island tourist resort is described by participants as informal and no declaration is expected. Moore said one aim was to "instil a sense of political urgency to avert potential economic tragedy." Another was to seek ways of popularising freer trade to people who felt the pain of readjustment but could not see the benefits, as well as preventing "bush fires of confrontation while we proceed with orderly negotiations." The meeting is being attended by 25 overseas delegations including representatives of GATT and the Economic Community. The delegates include U.S. Trade Representative Clayton Yeutter. American sources say he is ready to state that the best way to reverse protectionist sentiment in the United States is to implement four key Uruguay proposals: -- an end to agricultural subsidies; -- inclusion of trade in services and investments in GATT regulations; -- tightening of restrictions on pirating of so-called intellectual property such as trademarks, patents and copyrights; -- new rules to resolve trade disputes among GATT's 92 member states. Earlier, New Zealand sources had said French Foreign Trade Minister Michel Noir had pulled out of the informal GATT talks for domestic political reasons. Cabinet chief Bernard Prauge will lead the French delegation.  
FINLAND FEBRUARY TRADE SURPLUS AT 641 MLN MARKKA. Finland had a 641 mln markka trade surplus in February following an 80 mln markka surplus in January and a 614 mln surplus in February 1986, Customs Board preliminary figures showed. Exports in February were 6.38 billion markka and imports 5.74 billion compared with exports of 6.72 billion and imports of 6.64 billion in January and exports of 6.92 billion and imports of 6.31 billion in February last year.  
GATT MEETING HEARS PLEA FOR AFRICAN DEBT RELIEF. Debt among African countries will continue to grow and their economies will remain stifled unless developed countries lower their interest rates, Nigerian Trade Minister Samaila Mamman said today. He told an informal meeting of the General Agreement on Tariffs and Trade the widening gap between industrialized and developing countries and an unfair international economic system were major obstacles to growth in developing countries. "I wish to emphasize that the growth in the volume of the external indebtedness of African countries reflects the full effect of the deflationary monetary and trade policies of the developed market economy countries," Mamman said. Delegates from 23 countries are attending the talks of the world trade body in the New Zealand resort of Taupo.  
JAPAN SAYS IT TRYING TO EXPAND DOMESTIC DEMAND. Japan has assured a meeting of trade ministers it is making every effort to expand domestic demand and restructure its economy. Japanese trade representative Tsomu Hata told an informal General Agreement on Tariffs and Trade (GATT) meeting that, in addition to demand boosting measures adopted last September, a comprehensive economic program will be prepared after the 1987/88 budget is approved. Hata, speaking at the first session of the two-day meeting, said agriculture is no exception to the goal of restructuring the economy, but did not elaborate. Hata said protectionist pressures in the international economy are as strong as ever, reflecting financial deficits, payment imbalances and serious unemployment in many countries.  
JAPAN IN LAST DITCH EFFORT TO SAVE CHIP PACT. Japan has launched a last-ditch effort to salvage its computer micro-chip pact with the United States - sending a letter to top American policy makers setting out its case and instructing its producers to cut output further. "We must make our utmost effort to ward off any catastrophe," Ministry of International Trade and Industry (MITI) Deputy Director General Masaji Yamamoto told reporters. "If hasty action is taken in the United States, it will create very serious problems." The Reagan Administration's Economic Policy is expected to meet Thursday to review Japanese compliance with the bilateral agreement hammered out last year. Under the pact, Tokyo agreed to stop selling cut-price chips in world markets and to increase its imports of American semiconductors. Washington has accused Japan of reneging on the deal by selling low priced chips in Asia and by failing to boost American imports, and has threatened to take retaliatory action. In an effort to save the agreement, MITI is asking Japanese chip makers to limit production in the hope that will boost domestic demand and reduce the incentive to export. Yamamoto said that Japan will slash output of 256 kilobit dynamic random access and erasable programmable read only memory chips by 11 pct in the second quarter. This follows a cutback of more than 20 pct in the first three months of the year. He said the cutbacks were already drying up the supply of chips available for export through unregulated distributors in the so-called grey market. "We have almost no grey market," he said. "Supply is diminishing." To help ensure that the cutbacks are implemented, MITI called in the president of Japan's largest semiconductor maker, NEC Corp <NIPN.T> last week, he said. It is also issuing specific instructions on production to the Japanese subsidiary of <Texas Instruments Inc>. Trade and Industry Minister Hajime Tamura spelled out the steps Japan was taking to salvage the pact and appealed for U.S. Understanding in a letter to top American policy makers. The letter was sent today to U.S. Secretary of State George Schultz, Treasury Secretary James Baker, Commerce Secretary Malcolm Baldrige and U.S. Trade Representative Clayton Yeutter. The four, who make up the Economic Policy Council, are expected to consider evidence presented by U.S. Chip maker Micron Technology Inc <DRAM.O> of cut-price Japanese sales in Hong Kong. Yamamoto admitted that <Oki Electric Industry Co>'s Hong Kong subsidiary had sold chips at an inappropriate level but denied that it was dumping chips at rock-bottom prices. "If the United States uses this as proof of dumping...We will present our rebuttal," he said. The sales though were inappropriate in the light of MITI's advice to semiconductor makers to sell chips at well above production costs to avoid any hint of dumping, he said. He also called the case "strange," but he stopped short of endorsing Japanese newspaper accusations that Oki had been trapped into making the sales. He did say though that Micron publicized the invoice documenting the sales on the same day they were made and that Oki was unable to locate the person who had bought the chips when it tried to buy them back last week.  
AMSTUTZ SAYS FARM TRADE ACCORD POSSIBLE IN 1988. U.S. Agriculture undersecretary Daniel Amstutz said it is possible to reach a global agreement to scale-back agricultural supports in calendar 1988. Speaking to a Senate Agriculture Appropriations committee hearing, Amstutz said "I think we can reach agreement in calendar 1988." Amstutz said the U.S. places a high priority on the Uruguay round of global trade talks. His comments followed a statement by Secretary of State George Shultz last week urging agriculture be the highest priority item during the upcoming summit of western heads of state in Venice, Italy.  
YEUTTER SEES GATT CONSENSUS ON FARM TRADE REFORM. U.S. Trade Representative Clayton Yeutter said trade ministers meeting here have reached a general consensus on agricultural trade reform under the latest Uruguay round of the General Agreement on Tariffs and Trade (GATT). Yeutter gave no precise details of the understanding but told journalists the consensus covers the principles involved in agricultural trade reform and what needs to be done to improve the global situation in agriculture. Delegates from 22 countries are meeting informally to discuss progress made since the latest GATT round was launched in Punta del Este, Uruguay, last September. Yeutter said "at least people seem to be going down the same road...But how that translates ultimately into negotiations is another matter entirely." There seems to be an understanding of the need to deal with the problem quickly and "a more common understanding of how we are going to get from here to there," Yeutter said. However, the hard work is still to come, with a couple of years of tough negotiations ahead, he said. "It is ludicrous for the nations of the world to plough immense amounts of financial resources into the production of items that nobody wants to buy," he said. He said the long-term answer is to switch some of the financial resources now committed to agriculture to other more productive areas. This would help agriculture because some its inefficient non-productive segments would stop operating, he said. Individual segments in many countries may lose in the process, but it should result in a more rational system of world-wide production within 10 or 15 years, he said. It is important that the agriculture negotiations reach a relatively early conclusion because the U.S. Is spending 26 billion dlrs a year and the European Community probably more than that, which is an ineffective use of financial resources, he said. Asked about the prospect of a priority for agriculture in the negotiations, he said "one has to be politically realistic... If there is any chance of getting it (agricultural trade reform) done in two to three years it's going to have to be as part of a larger package."  
GATT ROUND MAY STOP GROWING TRADE PROBLEMS - U.S.. A successful new GATT (General Agreement on Tariffs and Trade) round is needed to halt growing bilateral trade problems between major trading partners, U.S. Trade Representative Clayton Yeutter said. Yeutter, in New Zealand for informal GATT ministerial talks, told Reuters bilateral trade disputes are increasing because the multilateral system is inefficient. "That is really a strong rationale why we need a new GATT round," he said. "The very existence of all these bilateral irritants clearly emphasises the need to develop multilateral solutions to some of these problems." The eighth GATT round of negotiations was launched at Punta del Este in Uruguay in September 1986. Agriculture and services were included in the negotiations for the first time. The growing debt burden of Latin American and African nations will also provide impetus for the GATT round to succeed, he said. "Clearly those countries need to develop their export endeavours and they need open markets for that to happen and that's the basic objective of the new GATT round," he said. But he said the GATT round is a long term endeavour. It will not give any short term relief for debt ridden countries, but it will make a difference in 10 to 15 years. "It's a worthwhile activity from their standpoint because these debts are not going to go away in the next year or two," he said. "They ought to be very strongly supported in the GATT round as a mechanism for relieving their debt burdens or making possible debt amortisation in the future," he said.  
NAKASONE INTERVENES IN MICROCHIP DISPUTE WITH U.S.. Prime Minister Yasuhiro Nakasone intervened to try to resolve Japan's escalating dispute with the U.S. Over semiconductor trade, government officials said. At today's Cabinet meeting, Nakasone told Trade and Industry Minister Hajime Tamura to redouble his efforts to calm U.S. Anger over what it sees as Japan's unfair trade practices in semiconductors. Nakasone intervened only two days before a scheduled meeting of the Reagan administration's Economic Policy Council to consider whether Japan is reneging on its microchip pact with the U.S. That pact, agreed last year after months of negotiations, calls on Japan to stop selling cut-price chips in world markets and to raise its imports of U.S. Semiconductors. Senior U.S. Officials have accused Tokyo of failing to live up to the accord and have threatened retaliatory action. Yesterday, Tamura's Ministry of International Trade and Industry (MITI) launched a last-ditch attempt to salvage the pact by writing letters to U.S. Policy makers setting out Japan's case and telling Japanese chip makers to cut output. In his letter, the contents of which were released today, Tamura said a MITI survey carried out at the beginning of March showed Japanese producers were not selling at cut-rate prices in Asian markets. In a separate letter sent to senior U.S. Officials, MITI vice minister for international affairs Makoto Kuroda suggested the two countries could conduct a joint investigation into allegations of Japanese chip dumping in such markets.  
YEUTTER SAYS U.S.-JAPAN TRADE DIFFICULTIES REMAIN. U.S. Trade Representative Clayton Yeutter said he was unsure whether some of the trade issues straining U.S.-Japanese relations would be resolved before the two countries open trade talks in late April. "We are having high level discussions on them (the issues) within the United States...The relationship on some of those is very strained between us (Japan) at the moment and we need to relieve those strains at the earliest possible date," he said. "I am not sure we can wait until late April," he added. Yeutter is in New Zealand for a two-day informal meeting of trade ministers who are reviewing the Uruguay round of the General Agreement on Trade and Tariffs (GATT). He said he will meet the Japanese delegation over the next few days but declined to discuss methods of relieving the strain between the two countries. Yeutter said earlier the three most contentious trade issues were semiconductors, Japanese government unwillingness to allow public entities to buy U.S. Super-computers and the barring of U.S. Firms from the eight billion U.S. Dlr Kansai airport project near Osaka. The Japanese delegation to the GATT talks said in a statement yesterday they are making major efforts to dismantle trade barriers in their country. "I am convinced that they are attempting to move their policies in the right direction. The question is how far and how fast," Yeutter said.  
GERMAN FEBRUARY IMPORT PRICES FALL. Import prices in West Germany fell 0.7 pct in February from January to stand 15.6 pct below their level in February 1986, the Federal Statistics Office said. In January the import price index, base 1980, was unchanged compared with December but 17.8 pct lower against January 1986. February export prices, same base as import prices, were unchanged compared with January and 2.5 pct lower than in February 1986. In January export prices fell 0.3 pct against December to stand 3.0 pct lower than in January 1986.  
CANADA OUTLINES GATT AGRICULTURAL REFORM PLAN. Canadian Trade Minister Pat Carney said that agricultural policies should not hurt world international trade and should therefore become more price responsive over time. She told delegates at the informal meeting of trade ministers that this was one of five principles Canada wanted adopted in reforming agriculture in the General Agreement on Tariffs and Trade (GATT). Secondly, support for agriculture should avoid production incentives, and thirdly, countries should freeze and seek to reduce government aid measures that distorted world prices, Carney said. Carney said the fourth principle was that countries should not introduce new import barriers not mandated by existing legislation and the fifth was that these basic principles must be implemented collectively. Carney later told Reuters the Canadian guidelines are basically compatible with the seven point Australian proposals announced in Davos, Switzerland, in January. European trade sources said the conference welcomed the Canadian initiative but some delegates, and not only the European Community, voiced reservations about some of the principles. Carney said there was a lot of political will among the ministers here to complete the Uruguay Round of GATT in under four years and that there is also a realisation that it has to be done in a balanced way. "The consensus view was to proceed as fast as we can on a broad front and see what areas emerge where we can get early conclusion," she said. However, the meeting did not identify what those areas are, Carney said.  She said Canada/U.S. Bilateral trade negotiations, which must be concluded at least in draft form by October, are progressing well.  
PHILIPPINE TRADE SECRETARY PLEASED WITH GATT TALKS. Philippine Secretary of Trade and Industry Jose Concepcion, who two days ago expressed doubts about agreements produced at international conferences, said he was pleased with the latest gathering here. Concepcion told Reuters in an interview that the informal General Agreement on Tariffs and Trade (GATT) meeting gave ministers from more than 20 nations the chance to examine issues with which GATT did not have the political will to deal. "Also, the role of the developing countries has been emphasised in this particular meeting. Somehow it has been the perception of developing countries that GATT is a club of rich countries," he added in an interview with Reuters. "In fact many of the issues that have been tabled for discussion (in the Uruguay round of trade negotiations) will be of more benefit to the developed countries," he said. Concepcion said at the start of the Taupo meeting that the Uruguay round was meant to be a "shining act of faith" in the world trade system. Concepcion said the Philippines would address the issues of trade in tropical fruit and the improvement of GATT machinery to make it more responsive. He said tropical fruit came from developing countries but faced non-tariff barriers, quantitative restrictions or very high duties in other nations. Concepcion named Japan and South Korea as examples. He said he would go to Wellington for talks with New Zealand, which had a surplus in trade with the Philippines, to encourage it to switch imports from other countries. He noted that New Zealand bought its bananas from Ecuador.  
YEUTTER SEES GATT CONSENSUS ON FARM TRADE REFORM. U.S. Trade Representative Clayton Yeutter said trade ministers meeting here have reached a general consensus on agricultural trade reform under the latest Uruguay round of the General Agreement on Tariffs and Trade (GATT). Yeutter gave no precise details of the understanding but told journalists the consensus covers the principles involved in agricultural trade reform and what needs to be done to improve the global situation in agriculture. Delegates from 22 countries are meeting informally to discuss progress made since the latest GATT round was launched in Punta del Este, Uruguay, last September. Yeutter said "at least people seem to be going down the same road...But how that translates ultimately into negotiations is another matter entirely." There seems to be an understanding of the need to deal with the problem quickly and "a more common understanding of how we are going to get from here to there," Yeutter said. However, the hard work is still to come, with a couple of years of tough negotiations ahead, he said. "It is ludicrous for the nations of the world to plough immense amounts of financial resources into the production of items that nobody wants to buy," he said. He said the long-term answer is to switch some of the financial resources now committed to agriculture to other more productive areas. This would help agriculture because some its inefficient non-productive segments would stop operating, he said. Individual segments in many countries may lose in the process, but it should result in a more rational system of world-wide production within 10 or 15 years, he said. It is important that the agriculture negotiations reach a relatively early conclusion because the U.S. Is spending 26 billion dlrs a year and the European Community probably more than that, which is an ineffective use of financial resources, he said. Asked about the prospect of a priority for agriculture in the negotiations, he said "one has to be politically realistic... If there is any chance of getting it (agricultural trade reform) done in two to three years it's going to have to be as part of a larger package."  
NAKASONE INTERVENES IN MICROCHIP DISPUTE. Prime Minister Yasuhiro Nakasone intervened to try to resolve Japan's escalating dispute with the U.S. Over semiconductor trade, government officials said. At today's Cabinet meeting, Nakasone told Trade and Industry Minister Hajime Tamura to redouble his efforts to calm U.S. Anger over what it sees as Japan's unfair trade practices in semiconductors. Nakasone intervened only two days before a scheduled meeting of the Reagan administration's Economic Policy Council to consider whether Japan is reneging on its microchip pact with the U.S. That pact, agreed last year after months of negotiations, calls on Japan to stop selling cut-price chips in world markets and to raise its imports of U.S. Semiconductors. Senior U.S. Officials have accused Tokyo of failing to live up to the accord and have threatened retaliatory action. Yesterday, Tamura's Ministry of International Trade and Industry (MITI) launched a last-ditch attempt to salvage the pact by writing letters to U.S. Policy makers setting out Japan's case and telling Japanese chip makers to cut output. In his letter, the contents of which were released today, Tamura said a MITI survey carried out at the beginning of March showed Japanese producers were not selling at cut-rate prices in Asian markets. In a separate letter sent to senior U.S. Officials, MITI vice minister for international affairs Makoto Kuroda suggested the two countries could conduct a joint investigation into allegations of Japanese chip dumping in such markets.  
CANADA OUTLINES GATT AGRICULTURAL REFORM PLAN. Canadian Trade Minister Pat Carney said that agricultural policies should not hurt world international trade and should therefore become more price responsive over time. She told delegates at the informal meeting of trade ministers that this was one of five principles Canada wanted adopted in reforming agriculture in the General Agreement on Tariffs and Trade (GATT). Secondly, support for agriculture should avoid production incentives, and thirdly, countries should freeze and seek to reduce government aid measures that distorted world prices, Carney said. Carney said the fourth principle was that countries should not introduce new import barriers not mandated by existing legislation and the fifth was that these basic principles must be implemented collectively. Carney later told Reuters the Canadian guidelines are basically compatible with the seven point Australian proposals announced in Davos, Switzerland, in January. European trade sources said the conference welcomed the Canadian initiative but some delegates, and not only the European Community, voiced reservations about some of the principles. Carney said there was a lot of political will among the ministers here to complete the Uruguay Round of GATT in under four years and that there is also a realisation that it has to be done in a balanced way. "The consensus view was to proceed as fast as we can on a broad front and see what areas emerge where we can get early conclusion," she said. However, the meeting did not identify what those areas are, Carney said.  She said Canada/U.S. Bilateral trade negotiations, which must be concluded at least in draft form by October, are progressing well.  
YEUTTER SAYS U.S.-JAPAN TRADE DIFFICULTIES REMAIN. U.S. Trade Representative Clayton Yeutter said he was unsure whether some of the trade issues straining U.S.-Japanese relations would be resolved before the two countries open trade talks in late April. "We are having high level discussions on them (the issues) within the United States...The relationship on some of those is very strained between us (Japan) at the moment and we need to relieve those strains at the earliest possible date," he said. "I am not sure we can wait until late April," he added. Yeutter is in New Zealand for a two-day informal meeting of trade ministers who are reviewing the Uruguay round of the General Agreement on Trade and Tariffs (GATT). He said he will meet the Japanese delegation over the next few days but declined to discuss methods of relieving the strain between the two countries. Yeutter said earlier the three most contentious trade issues were semiconductors, Japanese government unwillingness to allow public entities to buy U.S. Super-computers and the barring of U.S. Firms from the eight billion U.S. Dlr Kansai airport project near Osaka. The Japanese delegation to the GATT talks said in a statement yesterday they are making major efforts to dismantle trade barriers in their country. "I am convinced that they are attempting to move their policies in the right direction. The question is how far and how fast," Yeutter said.  
TAIWAN PROPOSES FURTHER TARIFF CUTS. Taiwan said it plans another round of tariff cuts, possibly within a month, to try to narrow its trade surplus with the U.S. Vice Finance Minister Ronald Ho said a high-level economic committee recommended tariff cuts on 66 products requested by Washington, including apples, chocolates and fruit juice. Ho said the cuts may come into effect by the end of next month. Taiwan's trade surplus with the U.S. Widened in the first two months of this year to 2.35 billion dlrs from 1.87 billion dlrs in the same period last year.  
TAIWAN PROPOSES FURTHER TARIFF CUTS. Taiwan said it plans another round of tariff cuts, possibly within a month, to try to narrow its trade surplus with the U.S. Vice Finance Minister Ronald Ho said a high-level economic committee recommended tariff cuts on 66 products requested by Washington, including apples, chocolates and fruit juice. Ho said the cuts may come into effect by the end of next month. Taiwan's trade surplus with the U.S. Widened in the first two months of this year to 2.35 billion dlrs from 1.87 billion dlrs in the same period last year.  
GATT ROUND MAY STOP GROWING TRADE PROBLEMS: U.S.. A successful new GATT (General Agreement on Tariffs and Trade) round is needed to halt growing bilateral trade problems between major trading partners, U.S. Trade Representative Clayton Yeutter said. Yeutter, in New Zealand for informal GATT ministerial talks, told Reuters bilateral trade disputes are increasing because the multilateral system is inefficient. "That is really a strong rationale why we need a new GATT round," he said. "The very existence of all these bilateral irritants clearly emphasises the need to develop multilateral solutions to some of these problems." The eighth GATT round of negotiations was launched at Punta del Este in Uruguay in September 1986. Agriculture and services were included in the negotiations for the first time. The growing debt burden of Latin American and African nations will also provide impetus for the GATT round to succeed, he said. "Clearly those countries need to develop their export endeavours and they need open markets for that to happen and that's the basic objective of the new GATT round." But he said the GATT round is a long term endeavour. It will not give any short term relief for debt ridden countries, but it will make a difference in 10 to 15 years. "It's a worthwhile activity from their standpoint because these debts are not going to go away in the next year or two," he said. "They ought to be very strongly supported in the GATT round as a mechanism for relieving their debt burdens or making possible debt amortisation in the future," he said.  
INDONESIA URGED TO DEREGULATE ITS ECONOMY. World Bank President Barber Conable linked increased borrowing by Indonesia, the Third World's sixth largest debtor, to fresh measures to deregulate trade and dismantle protectionist barriers. "We would like to see the Indonesian government continue the adjustment process ... To move towards increased deregulation of the economy," Conable told a press conference at the end of a three-day visit to Jakarta. Conable directly linked further Bank help for Indonesia's hard-pressed balance of payments to further measures by the government to reduce protectionism and increase efficiency. The World Bank last month granted Indonesia a 300 mln dlr trade adjustment loan. He said further loans would depend on the economic policies Indonesia adopted. But he said that in meetings with both President Suharto and leading Indonesian ministers he had not called for specific policy changes. "The initiative will have to rest with the Indonesian government. We are not here to dictate to them," he stated. Indonesia, the only Asian member of Opec, has been badly hit by last year's slump in oil prices which cut its revenues from crude exports in half. Conable had what he termed a frank meeting this morning with Suharto. He voiced support for measures already taken, including September's 31 pct devaluation of the rupiah, and efforts to deregulate imports and stimulate exports. "The government can rely on the support of the World Bank in a continuing program of adjustment to the economic realities of today's world," he said. The Bank has loaned Indonesia 10.7 billion dlrs over the past 20 years. Lending is now about one billion a year. The World Bank would probably like to see further dismantling of tarrif barriers and measures to reduce Indonesia's protected monopolies in areas like steel, plastics and cement, western bankers and diplomats said. The government has already said it will announce further deregulation measures, but has given no timetable. It is also considering selling off loss-making state companies. Conable said the Bank would try to help Indonesia find funds to cover its share of development projects, which otherwise would have to be scrapped or postponed. Japan's Ex-Im bank announced a 900 mln dlr untied credit last month.  
FED'S HELLER SAYS HE WANTS TO SEE STRONGER JAPANESE DEMAND FOR AMERICAN GOODS.  FED'S HELLER SAYS HE WANTS TO SEE STRONGER JAPANESE DEMAND FOR AMERICAN GOODS  
U.S. HOUSE PANEL EASES SOVIET EXPORT CONTROLS. The U.S. House Foreign Affairs Committee voted to ease restrictions on exports that are now kept from shipment to Soviet-bloc countries but are no longer a threat to U.S. national security. The Democratic-controlled committee said the administration's export control policies, which restrict shipment of thousands of products, contributed to last year's record 169 billion dlr U.S. trade deficit. The committee said the legislation will cut government red tape and make it easier for U.S. companies to compete with foreign producers since many of the goods are readily available from other countries. Rep. Don Bonker, chairman of the International Economic Policy subcommittee, said the unnecessary restrictions had cost the U.S. 17 billion dlrs in exports a year. "This is Congress' number one opportunity to attack the trade deficit in a positive way by exporting more," the Washington Democrat said. The legislation would order the Commerce Department to lift controls on 40 pct of goods on the restricted export list over the next three years unless other countries agree to comparable controls. Most of these are of the least sophisticated type of technology such as medical instruments. It would also give the Commerce Department primary authority to decide which exports will be permitted and limit the Defense Department to an advisory role in reviewing requests to export highly-sensitive technology.  
UNIONIST URGES RETALIATION AGAINST JAPAN. William Bywater, president of the International Union of Electronic Workers, called on President Reagan to retaliate against Japan for unfair practices in semiconductor trade. He said in a statement a crash program was needed in the semiconductor industry to prevent the United States from becoming "one of the world's industrial lightweights." Bywater's remarks came as the White House Economic Policy Council prepared for a Thursday meeting to decide what sanctions if any should be taken against Japan for alleged violations of a U.S.-Japanese semiconductors agreement. The pact, agreed to last July, called for Tokyo to end selling semiconductors at below cost and to open its home market to U.S. goods. In return, Washington agreed to forego antidumping duties on Japanese semiconductors. But U.S. officials have said that while Japan has stopped dumping in the U.S. market, it has not ended third country dumping; nor has it opened its market to U.S. semiconductors. Japan yesterday, in an effort to ward off U.S. action, ordered a cutback in semiconductors production as a way to force prices up and end the dumping. Bywater, in his statement, said he backed a Defense Science Board task force proposal to set up a consortium to develop new electronic products and manufacturing processes and make the U.S. industory more competitive. But he added the industry could not wait for legislation to pass and that action was required now to help the depressed electronic industry. Bywater said, "I urge the Reagan Administration to take full and severe action immediately against Japan by invoking the retaliatory steps that are permitted under U.S. law and GATT (General Agreement on Tariffs and Trade)."  
BRAZIL COMPUTER MARKET TO REMAIN CLOSED-MINISTER. Brazilian Science and Technology Minister Renato Archer said Brazil will keep its computer market closed to foreign goods in order to give its own infant industry time to develop. "Every country establishes laws to protect its interests. The United States closed their borders at a certain stage to some foreign goods and therefore protected its industrial development. Now it is time for Brazil to do likewise," Archer said at the opening of a national software conference. After several meetings, Brazil and the U.S. Have made no major progress in their computer row, which they have been trying to resolve for the past 18 months. The Reagan administration has objected to Brazil protecting its computer industry from imports.  
CANADA VOWS TO FIGHT U.S. POTASH ACTION. External Affairs Minister Joe Clark today vowed to do everything possible to fight the U.S. action against Canadian potash exports, but also warned against raising the alarm too early in the dispute. In the latest flashpoint in Canadian-U.S. trade relations, the U.S. International Trade Commission ruled unanimously Monday that Canadian potash shipments valued at 270 million U.S. dlrs last year were injuring the U.S. industry. "We certainly intend to do everything we can to insure that Canadian interests are well protected," Clark told the House of Commons in the daily question period. But he said the opposition parties should be careful "not to raise false alarms too early." The case now goes before the U.S. Commerce Department's trade division to determine if a duty should be imposed. Potash producers from New Mexico, claiming unfair government subsidies, are seeking a 43 pct tariff on Canada's shipments. Canada, the world's largest potash producer, exported 9.8 mln metric tonnes of potash last year, with nearly a third going to the U.S. Most of the potash, used in the production of fertilizer, comes from provincially owned mines in Saskatchewan. In the Commons, Liberal member Lloyd Axworthy branded the ruling as just another "trade harrassment" from the U.S. and criticized Clark's assurances the country's interests would be protected. "We received exactly the same kind of assurances in the softwood lumber case that was totally fumbled and bumbled," Axworthy said. Canada's Progressive Conservative government agreed to impose a 15 pct duty on its softwood lumber exports earlier this year to end a long and bitter bilateral trade dispute with the U.S. Axworthy urged the government to present Canada's case to world trade authorities under the General Agreement on Tariffs and Trade. But Clark maintained the potash dispute was another example of why Canada needs to find a new way to settle bilateral irritants in the free trade negotiations under way with the U.S. "What we are seeking to do is put in place a better system," Clark said. Meanwhile, Saskatchewan Trade Minister Bob Andrew expressed confidence Canada would win its case, claiming the problem stems from low international commodity prices and not government subsidies. "The reality of the problem and the injury is caused worldwide," he said. "It's caused by a downturn in the commodity price for fertilizer, whether it's potash fertilizer, nitrogen fertilizer or whatever."  
N.Z. TRADE SURPLUS 119.1 MLN DLRS IN FEBRUARY. Preliminary trade figures for February show an excess of exports over imports of 119.1 mln N.Z. Dlrs, a Statistics Department statement said. This compares with a 3.3 mln dlr deficit (revised from 1.7 mln) in January and a 36.1 mln dlr deficit in February 1986. Exports rose to 998.4 mln dlrs, from 889.2 mln (revised from 889.5) in January and 903.2 in February 1986. Imports dropped to an estimated 879.4 mln dlrs from 892.5 (revised from 891.2) in January and 939.3 in February 1986. The deficit for the eight months to the end of February was 15.3 mln dlrs, as against 1.057 billion dlrs in the same period a year ago.  
BELGOLUX TRADE SWINGS INTO JANUARY DEFICIT. The Belgo-Luxembourg Economic Union recorded a provisional trade deficit of 9.45 billion francs in January after a December surplus of 15.32 billion francs, revised upwards from a provisional surplus of 11.94 billion, the National Statistics Office said. In January 1986, the union recorded a deficit of 23.31 billion francs. January imports fell to a provisional 228.86 billion francs from 240.24 billion in December and 281.65 billion a year earlier, but exports were also lower, at 219.41 billion francs against 255.56 billion and 258.34 billion respectively.  
TAIWAN SEES ITS INVESTMENT IN U.S. RISING SHARPLY. Taiwanese investment in the U.S. Is expected to nearly double to 80 mln U.S. Dlrs in calendar 1987 and rise to 400 mln dlrs a year by 1991, a five-year forecast by the Economic Ministry showed. Taiwanese investment in the U.S. Last year totalled 46 mln dlrs, the ministry document said. The investment was mainly in electronics, trading, food and service industries. Lee Ming-Yi, deputy director of the ministry's Industrial Development and Investment Centre, said the forecast rise is due to planned government incentives and growing willingness among Taiwanese to invest abroad. Lee told Reuters the incentives, to be introduced in May or June, include bank loans and a reduction in capitalisation requirements for businesses seeking to invest in the U.S. To 10 mln Taiwan dlrs from 20 mln. He said the moves to encourage investment in the U.S. Are part of Taiwan's efforts to cut its trade surplus with Washington, which rose to a record 13.6 billion U.S. Dlrs in 1986 from 1985's 10.2 billion. Taiwanese manufacturers can create jobs for Americans and avoid import quotas if they set up plants in the U.S., He added.  
CHINA TO TIGHTEN IMPORT CONTROL, CUT EXPORT COSTS. China should tighten imports of ordinary goods and restrict or even forbid import of goods which can be made domestically, Premier Zhao Ziyang said. He told the National People's Congress, China's parliament, that the country's foreign exchange is limited and must be used where it is most needed. "We should expand production of import substitutes and increase their proportion," he said. On exports, China should increase its proportion of manufactured goods, especially textiles, light industrial goods, electronics and machinery, he said. Zhao said China should lower the cost of exports and control the export of goods that incur too much loss. In 1986 China had a trade deficit of 11.9 billion dlrs, down from a record 14 billion in 1985. Zhao said China should work to provide a more favourable investment environment for foreign businessmen. It should use foreign funds for production and construction, with stress on firms making goods for export or import substitutes. China should also earn more foreign exchange from tourists and contracted labour abroad, he added.  
HOUSE WAYS AND MEANS CMTE FINISHES WORK ON BILL TO TOUGHEN TRADE LAWS.  HOUSE WAYS AND MEANS CMTE FINISHES WORK ON BILL TO TOUGHEN TRADE LAWS  
KEY U.S. HOUSE PANEL FINISHES MAJOR TRADE BILL. The House Ways and Means Committee completed action on legislation to toughen U.S. trade laws, chairman Dan Rostenkowski said. The committee's consideration of one of the most controversial provisions, a plan to force major trade surplus countries to cut their trade imbalance with the United States, was deferred until the full House considers the trade bill, its sponsor Rep. Richard Gephardt said. Gephardt, a Missouri Democrat, told Reuters he was not certain the exact form his trade surplus reduction proposal would take. Last year the House approved his plan to force a 10 pct surplus cutback each year for four years, by countries such as Japan. The Ways and Means Committess' trade bill forces President Reagan to retaliate against unfair trade practices that violate international trade agreements but it allows him to wave retaliatory tariffs or quotas if the action would hurt the U.S. economy. The trade bill gives U.S. Trade Representative Clayton Yeutter more authority in trade negotiations and in decisions to grant domestic industries import relief. It also gives him authority to decide whether foreign trade practices are unfair and violate U.S. trading rights. These powers are currently held by President Reagan. The administration has strongly objected to this transfer of authority from Reagan to Yeutter. The bill also extends U.S. authority to negotiate multilateral trade agreements. The bill will be wrapped into other trade legislation and voted on in the House in April.  
BALDRIGE SAYS JAPAN MUST OPEN ITS MARKETS. Commerce Secretary Malcolm Baldrige said the United States will not stand idly by and let Japan dominate the world electronics market. Baldrige told the Senate Finance Committee the United States would insist Japan open its markets to U.S. products as the U.S. market is open to Japanese products. Asked after his testimony if this meant the United States would close its markets to Japan if they did not open theirs, Baldrige said, "I'm not prepared to say that, but it certainly would be one of the alternatives studied." Baldrige said in his testimony Japan had a closed supercomputer market and a restricted telecommunications market. "I can only conclude that the common objective of the Japanese government and industry is to dominate the world electronics market. Given the importance of this market to U.S. industry in general and our defense base in particular, we cannot stand by idly," he said. He said it was these concerns about national security which led him to express reservations over the proposed acquisition of Fairchild Semiconductor by Fujitsu of Japan.  
TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR.  TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR  
TREASURY'S BAKER OUTLINES TRADE BILL CRITICISMS. Treasury Secretary James Baker said that some of the trade bills proposed by Congress conflict significantly with certain basic principles the Reagan administration considers critical. Baker told a Senate committee that the administration would resist such measures as a general import surcharge, sector-specific protection such as import quotas for individual products, mandatory retaliation, and limits on presidential discretion in negotiating more open markets abroad and other trade steps.  
U.S. SENATE TRADE LEADER CONCERNED ABOUT CANADA. The chairman of the U.S. Senate committee with jurisdiction over trade said he was concerned about a resolution on bilateral trade negotiations adopted by the Canadian House of Commons last week. The resolution supports negotiation of a bilateral trading agreement with the United States while protecting Canadian political sovereignty, social programs, agricultural marketing systems, the auto industry and Canada's cultural identity. Senate Finance Committee chairman Lloyd Bentsen said the resolution may jeopardize the viability of the proposed free trade agreement between the two countries, which are each other's largest trading partners. "We need a truly free trade agreement, which means both countries have to work toward a deal that is mutually beneficial and comprehensive, a large agreement," the Texas Democrat said in a statement. "I do not question Canada's right to protect its political sovereignty or cultural identity. However, if these phrases mean the government of Canada means to take important economic issues off the table in these negotiations, I am deeply concerned," he added. Bentsen said Canada restricts trade 15 different ways while the United States uses only six trade restriction methods. He said if Canada proposes an agreement where both countries get rid of six methods of trade restriction, it would not be fair and might not win Senate approval. "I am deeply concerned that when the President visits Prime Minister (Brian) Mulroney next month, he will be presented with this kind of argument, and I hope he makes it clear -- as I did when I was in Canada -- that only a mutually beneficial agreement will be successful," Bentsen said. Reagan and Mulroney are scheduled to meet April 5-6 in Ottawa. Bentsen urged Mulroney to withdraw a proposal that would ban imports of independently produced films into Canada by non-Canadians, which the senator called a protectionist measure.  
BALDRIGE SEES U.S. TRADE DEFICIT STARTING TO DECLINE IN FEB OR MARCH DATA.  BALDRIGE SEES U.S. TRADE DEFICIT STARTING TO DECLINE IN FEB OR MARCH DATA  
BALDRIGE SEES U.S. TRADE GAP DROPPING SOON. Commerce Secretary Malcolm Baldrige said the U.S. trade deficit should start to decline soon, possibly in the figures for February or March. "We could see the trade deficit start down in February or March," Baldrige said in an appearance before the Senate Governmental Affairs Committee. He predicted the trade deficit, which was 170 billion dlrs in 1986, would decline by 30 to 40 billion dlrs in 1987 and in 1988. Baldrige said he was making his prediction without having seen the February trade figures, but he said that the volume of imports has dropped beginning with the fourth quarter of 1986 and will continue to drop in this quarter. The eventual turnaround in the monthly trade figures will reflect the impact of the decline in the dollar, Baldrige said. Ealier, Treasury Secretary James Baker told the committee that the trade deficit had levelled off, but Baldrige said he was more optimistic, adding, "I think we turned the corner in February."  
U.S. CHIPMAKERS URGE SANCTIONS AGAINST JAPAN. The Semiconductor Industry Association urged the U.S. government to impose trade sanctions against Japan for violating the U.S.-Japan Semiconductor Trade Agreement. In a letter to Treasury Secretary James Baker the group said sanctions should be imposed against Japanese chipmakers as of April 1 and should continue until the United States is satisfied that there is full compliance with the agreement. The group said action by Japan to cut back on semiconductor exports is not what is required. "America's interests require that agreements be honored and that U.S. industries not bear the burden for the persistent unwillingness or inability of the government of Japan to deliver on its commitments," the trade group said. The White House Economic Policy Council is expected to discuss possible sanctions against Japan at a meeting scheduled for Thursday. The trade group said Japan has not lived up to the terms of the agreement last year which was aimed at ending Japanese dumping of semiconductors and at opening Japanese markets to foreign-based manufacturers.  
U.S. CHIPMAKERS URGE SANCTIONS AGAINST JAPAN. The Semiconductor Industry Association urged the U.S. government to impose trade sanctions against Japan for violating the U.S.-Japan Semiconductor Trade Agreement. In a letter to Treasury Secretary James Baker the group said sanctions should be imposed against Japanese chipmakers as of April 1 and continue until the U.S. is satisfied there is full compliance with the agreement. The group said action by Japan to cut back on semiconductor exports is not what is required. "America's interests require that agreements be honored and that U.S. industries not bear the burden for the persistent unwillingness or inability of the government of Japan to deliver on its commitments," the trade group said. The White House Economic Policy Council is expected to discuss possible sanctions against Japan at a meeting scheduled for Thursday. The trade group said Japan has not lived up to the terms of the agreement last year which was aimed at ending Japanese dumping of semiconductors and at opening Japanese markets to foreign-based manufacturers.  
BAKER SEES 15 TO 20 BILLION DLR DROP IN TRADE GAP. Treasury Secretary James Baker said he expected the U.S. Trade deficit to fall by 15 billion to 20 billion dlrs in 1987. Commenting on the deficit during an interview on Cable News Network, Baker said "I think you're going to see a 15 to 20 billion dlr reduction this year." The deficit was 170 billion dlrs in 1986. Baker noted that the benefits of a weaker currency take 12 to 18 months to affect the trade balance, and said it is now 18 months since the Plaza agreement to lower the dollar's value.  
EC LINKS AGRICULTURAL TRADE TALKS TO OTHER REFORM. The European Community (EC) considers talks on agricultural trade reform to be inseperable from talks on other trade reform in the present GATT round, Willy de Clercq, external relations commissioner of the EC, said. He told reporters here the EC would not bow to pressure to reach an early, seperate agreement on agricultural trade. He said the EC wanted to stick to the four-year schedule agreed by members of the General Agreement on Tariffs and Trade (GATT) in Punta del Este, Uruguay, last year. That included agricultural trade liberalisation for the first time in the lengthy program to re-negotiate the GATT. Other trade issues being discussed in the current GATT round include reform of trade in merchandise and services. De Clercq is on his way to China after attending a two-day conference for 22 GATT trade ministers held in New Zealand. Several of those ministers criticised the EC for what they saw as restrictive agricultural trade practices and called for urgent reforms. U.S. Trade representative, Clayton Yeutter, also said it was important agreement on agricultural trade reform was reached as early as possible. But de Clercq said the GATT program had been reached after long and hard negotiations, and the EC did not want changes. "We just want to stick to the agreement which was reached, and that was very clear -- that the new round would be one undertaking. It is a global negotiation with no two tracks, no fast track, no slow track. It has just one track, the track - and that's all," de Clercq said. "If you start selecting priorities, your priority is not my priority. We say that agriculture is urgent, but it's not the only urgent thing," he said. He said the Punte del Este agreement had taken eight months to prepare and eight days of negotiations.  
TRADE SURPLUS CUT WOULD BENEFIT JAPAN - SUMITA. Bank of Japan Governor Satoshi Sumita said it is in Japan's national interest to make greater efforts to reduce its trade surplus. He told business executives the most important issues for the world economy are the correction of international trade imbalances and a solution to the world debt problem. To this end, Japan and the U.S. Must make medium- and long-term efforts to alter economic structures which have expanded the trade gap between the two nations. World economic growth and therefore an expansion of debtor countries' export markets are needed to solve the debt issue, he added.  
German February trade surplus 10.4 billion marks (Jan surplus 7.2 billion) - official.  German February trade surplus 10.4 billion marks (Jan surplus 7.2 billion) - official  
NO PESSIMISM FOR GERMAN EXPORTERS, MINISTRY. Firms need not be pessimistic about export prospects even though foreign markets have become more difficult because of the mark's strength the Economics Ministry said. The ministry's parliamentary state secretary Ludolf Georg von Wartenberg, told a business conference German exports could start rising again in real terms during 1987, reversing the lower export trend which emerged in mid-1986. But even if the turnaround did not occur, there would be no need to worry about the economy as long as the weakness of exports did not affect currently good domestic demand. Von Wartenberg said consumer demand remained quite good but noted there had been a cooling in the investment climate. "This is certainly a reason for heightened watchfulness but not for stimulative steps," he said. The best way for Bonn to help its exporters is to work actively to promote free world trade, he added. Von Wartenberg said the economy still had good export opportunities. Price alone was not the only factor in international competitiveness, he said, adding German firms have a reputation for high quality standards, prompt delivery times and good service. Von Wartenberg said the government was in a difficult position on its trade figures.  It faced international pressure to reduce its trade surplus, but West Germans were worried about the effect of the mark's strength on the country's exporters. Reports about the trade surplus, especially overseas, tended to concentrate on nominal trade figures, which rose to a record 112.2 billion marks in 1986, he said. But this rise was due entirely to the lower value of imports caused by the decline of both the dollar and oil prices. German exports have in fact been falling in real terms for sometime, he said.  
UK FEB TRADE DEFICIT 224 MLN STG VS DEFICIT 527 MLN IN JAN - OFFICIAL..  UK FEB TRADE DEFICIT 224 MLN STG VS DEFICIT 527 MLN IN JAN - OFFICIAL.  
TRADE SURPLUS CUT WOULD BENEFIT JAPAN - SUMITA. Bank of Japan Governor Satoshi Sumita said it is in Japan's national interest to make greater efforts to reduce its trade surplus. He told business executives the most important issues for the world economy are the correction of international trade imbalances and a solution to the world debt problem. To this end, Japan and the U.S. Must make medium- and long-term efforts to alter economic structures which have expanded the trade gap between the two nations. World economic growth and therefore an expansion of debtor countries' export markets are needed to solve the debt issue, he added.  
U.S. TREASURY'S BAKER OPPOSES TAX INCREASE. U.S. Treasury Secretary James Baker said that he opposes a Federal tax increase to help reduce the budget deficit and favors spending cuts instead. "I don't think it's (a tax increase) is a very good idea and I'm quite confident that President Reagan doesn't think it's a very good idea," Baker said in an interview on Cable News Network's "Moneyline" television program. He said U.S. taxpayers are taxed at a rate of 19 pct of GNP which is traditionally where it has been, but the Federal Government is spending at a rate of 24 pct of GNP. Baker said spending cuts are clearly the best way to cut budget deficits. Baker said he opposed a stock transactions tax proposed by House Speaker Jim Wright, D-Tex, or other special taxes. "The stock transfer tax would be a particularly unfortunate approach to take," the Treasury Secretary said. He said the United States has some of the most efficient capital markets in the world and new taxes would impair efficiency. On the international front, Baker said banks must do more lending to developing countries. He was questioned about this after the Standard and Poor's Corp downgrading today of the debt of six major money center bank holding companies, largely because of their heavy developing nation loan exposure. Baker said that developing countries must adopt free market economic policies such as in the United States. He said capital flows will be required to support the needed reforms in the economic systems of those countries. The money must come either through equity or debt and Baker said that developing nations' "investment regimes do not support enough equity investment, so you've got to have some debt there." Commenting on the U.S. trade deficit, Baker said "I think you're going to see a 15 to 20 billion dlr reduction this year."  
BRITISH POLITICIANS URGE JAPAN TRADE SANCTIONS. One hundred members of Britain's ruling Conservative Party have signed a motion calling for trade sanctions against Japan to force Tokyo to open its domestic market to British goods. The government announced last week that Japan had a 5.9 billion dlr trade surplus with Britain in 1986. The Department of Trade and Industry said the government was drawing up contingency plans to force Japan into opening up its domestic markets but a spokesman said such moves were very much a last resort. Ideas being considered included blocking Japanese companies from trading in Britain and revoking licenses of Japanese operations in the London financial district.  
WHITE HOUSE UNIT DECIDES ON SEMICONDUCTORS. The White House Economic Policy Council made a recommendation to President Reagan whether to retaliate against Japan for alleged unfair practices in semiconductor trade, U.S. officials said. They would not disclose the council's recommendation, but the officials said earlier it was likely the council would call for retaliation and urge that curbs be imposed on Japanese exports to the United States. The officials said it might be several days before Reagan would act and his moves made public. The Senate last week unanimously called on Reagan to impose penalities on Japanese exports. Retaliation was also called for by the semiconductor industry and its chief trade union, both hard hit by Japanese semiconductor trade. In a pact last summer, Japan summer agreed to stop dumping its semiconductors at less than cost in the United States and other nations and to open its own market to the U.S. products. In return, the United States agreed to hold up imposing anti-dumping duties on Japanese semiconductor shipments. U.S. officials say that while Japan has stopped dumping semiconductors on the American market, they have continued to dump them in third countries and that the Japanese market has remained all but closed to the U.S. semiconductors. semiconductors on the American market, they have continued to dump them in third countries and that the Japanese market has remained all but closed to the U.S. semiconductors.  
GATT WARNS U.S. ON FEDERAL BUDGET, PROTECTIONISM. The United States' emphasis on its foreign trade deficit is misplaced and the country's real problem lies in its large federal budget deficit, the General Agreeement on Tariffs and Trade (GATT) said. By stressing its record trade deficit of 169.8 billion dlrs last year, the U.S. Was fuelling protectionist pressure which threatens the world trading system, it said in an annual report. The fundamental problem, the size of the U.S. Federal budget deficit, could be remedied only by cutting government spending or encouraging personal savings to finance the debt, it said. GATT also predicted world trade would grow by only 2.5 pct in 1987 -- a full percentage point lower than in each of the previous two years. GATT experts urged Washington to resist protectionism and instead seek macroeconomic changes to reduce the current account payments deficit -- higher private savings, lower investment and a smaller federal budget deficit. Raising U.S. Trade barriers "would result in little or no reduction in the current account deficit. It would, however, increase inflation and reduce world trade," it said. "The basic cause -- some combination of insufficient domestic savings and an excessive budget deficit -- would remain," the report said. GATT economists said trade expansion would slow this year because of slower growth forecasts in Japan and some West European nations as they adjust production and workforces to a low dollar, risk of higher U.S. Inflation, concerns over Third World debt management and looming protectionism. The report also said imbalances in the current accounts of Japan, West Germany and the U.S. Had increased in 1986. The most likely explanation was that exchange rate changes were not backed by changes in macroeconomic policies, it added. "Thus the prediction that these imbalances would be reduced as a result of the major realignment of exchange rates was not borne out last year," the report said. GATT warned there was a risk of a sizeable increase in the U.S. Inflation rate under the combined impact of a rapidly expanding money supply and low dollar. "Such a development could worsen the business climate by increasing uncertainty and pushing up interest rates, which, in turn, would adversely affect world trade." But the report noted a surprising rise in imports to the United States, despite the dollar's depreciation which makes foreign products more expensive. It suggested that resources idle in the U.S., Both human and in underutilised factories, were not geared to produce the goods and services sought from abroad. World trade in manufactures grew by only three pct in 1986, about half of the rate of the previous year. Trade in agricultural goods expanded by just one pct, continuing a stagnant pattern in that sector this decade, GATT said. Developing countries' exports declined significantly, while their imports increased moderately, although full statistics are not available yet, GATT said. The combined export earnings of 16 major indebted nations were sharply lower, and only five of them (Chile, Colombia, Philippines, South Korea, and Thailand) had higher exports.  
WHITE HOUSE PANEL SAID URGING JAPAN RETALIATION. The White House Economic Policy Council decided to recommend trade sanctions against Japan for violations of the U.S.-Japanese semiconductor agreement, industry sources said. They would give no details, noting that the White House had not commented on the decision. The administration has been under pressure to retaliate. There was no immediate announcement on the council's decision, but U.S. Officials said it was likely the senior policy group's move on curbs reflected growing American frustration over alleged unfair Japanese trade practices. U.S. Officials said President Reagan would probably act on the recommendations in a day or so, after consulting with aides on the foreign policy implications of retaliation. The officials said Reagan might delay retaliation for a last try to persuade Japan to abide by the agreement reached last July governing trade in semiconductors. Under a pact reached last July, Japan was to stop dumping semiconductors in world markets and to open its own market to U.S.-made semiconductors. In return, the U.S. Agreed to hold up imposing anti-dumping duties on Japanese semiconductor shipments. The United States said that dumping has stopped in the U.S. Market but has continued in third countries, and that the Japanese market remains closed. The pressure on Reagan to retaliate included a unanimous call by the Senate last week to impose penalties on Japanese high technology products containing semiconductors. A call for retaliation also came from the semiconductor industry and from its chief trade union. U.S. Officials said the most likely move against Japan would involve duties on semiconductor-based goods, such as televisions, video cassette recorders and computers.  
NAKASONE TO VISIT WASHINGTON IN LATE APRIL. Prime Minister Yasuhiro Nakasone will make an official week-long visit to the United States from April 29 and hold talks in Washington with President Reagan, Chief Cabinet Secretary Masaharu Gotoda told reporters. Government sources said Nakasone would try to resolve growing bilateral trade friction and discuss the June Venice summit of Western industrial democracies. Foreign Minister Tadashi Kuranari will accompany Nakasone, ministry officials said. U.S. Industry sources in Washington said the White House Economic Policy Council was recommending trade sanctions against Japan for violating the two countries' agreement on semiconductor trade. Under the pact, Japan pledged to stop dumping microchips in the U.S. And Asia and open its domestic market to U.S. Semiconductors.  
WORLD BANK CHIEF URGES MORE JAPANESE INVESTMENT. World Bank President Barber Conable called on Japan to boost investment in developing nations, for its own sake as well as that of the world economy. "Japan has the means to make a major contribution to development in the Third World," he told about 500 Japanese businessmen and academics. "I would be pleased with additional support." With 25 pct of the world's total banking assets, Japan could do more to help assist indebted Third World countries develop roads, bridges and other infrastructure, he said. Conable said additional commercial bank investment would also be to Japan's advantage. It would profit from rechannelling its huge trade surplus into Third World economies -- notably those in South America, China and India -- that are likely to expand faster than those in the developed world, he said. Japan is now the second largest shareholder in the Bank's concessionary lending affiliate, the International Development Association (IDA). It has also agreed recently to expand its contribution to another affiliate, the International Bank for Reconstruction and Development (IBRD), Conable noted. Conable said the World Bank was expanding its structural adjustment loans, designed to encourage developing countries to open their economies more to free competition and trade. "Adjustment loans could rise to 30 pct (of total World Bank loans) in the near future, though maybe not this year," Conable told Reuters after his speech. Such loans currently account for slightly over 20 pct.  
NAKASONE TO VISIT WASHINGTON IN LATE APRIL. Prime Minister Yasuhiro Nakasone will make an official week-long visit to the United States from April 29 and hold talks in Washington with President Reagan, Chief Cabinet Secretary Masaharu Gotoda told reporters. Government sources said Nakasone would try to resolve growing bilateral trade friction and discuss the June Venice summit of Western industrial democracies. Foreign Minister Tadashi Kuranari will accompany Nakasone, ministry officials said. U.S. Industry sources in Washington said the White House Economic Policy Council was recommending trade sanctions against Japan for violating the two countries' agreement on semiconductor trade. Under the pact, Japan pledged to stop dumping microchips in the U.S. And Asia and open its domestic market to U.S. Semiconductors.  
NAKASONE HARD-PRESSED TO SOOTHE U.S ANGER ON TRADE. Prime Minister Yasuhiro Nakasone will visit Washington next month in a bid to defuse mounting U.S. Anger over Japanese trade policies, but Western diplomats said they believed his chances of success were slim. Boxed in by powerful political pressure groups and widespread opposition to his tax reform plans, Nakasone will be hard-pressed to come up with anything new to tell U.S. President Ronald Reagan and key U.S. Congressmen, they said. News of the week-long visit starting April 29 coincided with news that Japan recorded a 8.14 billion dlr trade surplus last month, more than 70 pct higher than a year earlier. It also came one day after the Reagan Administration's Economic Policy Council decided to take retaliatory action against Japan for its alleged failure to live up to a joint trade agreement on computer microchips. Nakasone wants to go armed with two separate packages - one designed to pep up Japan's sagging economy and imports in the short-term, the other to redirect the country in the medium term away from its over-dependence on exports for growth. But government officials said political infighting could rob both packages of much of their punch and might even prevent one from seeing the light of day. Nakasone has insisted that the government would not draw up a package of short-term economic measures until after its 1987/88 budget passed parliament because he feared that would amount to a tacit admission that the budget was inadequate. But his hopes for quick passage of the budget in time for his trip have been shattered by a parliamentary boycott by opposition parties protesting over the sales tax plan. Faced with the possibility that he might have to go to the U.S. Virtually empty-handed, Nakasone today ordered his ruling Liberal Democratic Party (LDP) to come up with its own measures. He can then tell Reagan the LDP package will form the basis of the government's plans, without losing face in parliament over the budget, political analysts said. Officials working on the government's short-term economic package said it would probably include interest rate cuts on loans by government corporations, deregulation, measures to pass on some of the benefits of the strong yen to consumers in the form of lower prices, and accelerated public investment. They said a record portion of state investment planned for the entire 1987/88 fiscal year will take place in the first half, probably over 80 pct. Diplomats said that was unlikely to be enough to satisfy Reagan, who is under pressure from the Democrat-controlled U.S. Congress to take greater action to cut the huge American trade deficit. To complement the short-term measures, Nakasone is also likely to present Reagan with details of Japan's longer-term economic plans. A high-ranking advisory body headed by former Bank of Japan governor Haruo Maekawa is expected to come up with a final report outlining concrete steps to redirect the economy days before Nakasone is scheduled to leave for Washington. Its recommendations are designed as a follow-up to Maekawa's report last year on economic restructuring and are likely to cover such potentially politically explosive areas as agricultural reform and land policy, officials said. While wanting to make the report as explicit and detailed as possible, they said the political realities might force them to water down some of the committee's recommendations. A subcommittee is considering what the Japanese economy might look like in the medium to longer term after it undergoes massive restructuring, officials said. The subcommittee projects that the current account surplus will fall to less than two pct of Japan's total output, or gross national product, around 1993 or 1995. Last year the surplus, which measures trade in goods and services, amounted to over four pct of gnp. The subcommittee also projects annual economic growth for Japan of nearly four pct over that period and a very gradual appreciation of the yen, to about 130 to the dollar by around 1993, from 150 now.  
INDIA STEPS UP COUNTERTRADE DEALS TO CUT TRADE GAP. India is searching for non-communist countertrade partners to help it cut its trade deficit and conserve foreign exchange. Wheat, tobacco, tea, coffee, jute, engineering and electronic goods, as well as minerals including iron ore, are all on offer in return for crude oil, petroleum products, chemicals, steel and machinery, trade sources told Reuters. Most of the impetus behind countertrade, which began in 1984, comes from two state trading firms -- the State Trading Corp (STC) and the Minerals and Metals Trading Corp (MMTC). "The two state trading corporations are free to use their buying power in respect to bulk commodities to promote Indian exports," a commerce ministry spokeswoman said, adding that private firms are excluded from countertrading. One trade source said India has targetted countries that depend on an Indian domestic market recently opened to foreign imports. However, countertrade deals still make up only a small part of India's total trading and are likely to account for less than eight pct of the estimated 18.53 billion dlrs in trade during the nine months ended December, the sources said. Countertrade accounted for just five pct of India's 25.65 billion dlrs in trade during fiscal 1985/86 ended March, against almost nothing in 1984/85, official figures show. However, the figures exclude exchanges with the Eastern Bloc paid in non-convertible Indian rupees, the sources said. Total trade with the Soviet Union, involving swaps of agricultural produce and textiles for Soviet arms and crude oil, is estimated at 3.04 billion dlrs in fiscal 1986/87, against three billion in 1985/86. Indian countertrade, which is being promoted mainly to help narrow the country's large trade deficit, is still insignificant compared with agreements reached by Indonesia, Venezuela and Brazil, the trade sources said. The trade deficit, which hit an estimated record 6.96 billion dlrs in 1985/86, is expected to decline to 5.6 billion in the current fiscal year. But the push to include non-communist countries in countertrade is also due to other factors, including the slow growth of foreign reserves, a tight debt repayment schedule, shrinking aid and trade protectionism, businessmen said. One source said India is showing more dynamism in promoting countertrade deals than in the past, when the deals were made discreetly because they break GATT rules. As a member of the General Agreement on Tariffs and Trade (GATT), India cannot officially support bartering. The MMTC's recent countertrade deals include iron ore exports to Yugoslavia for steel structures and rails. "MMTC's recent global tenders now include a clause that preference will be given to parties who accept payment in kind for goods and services sold to India," a trade official said, adding that the policy remains flexible. "We also take into account other factors such as prices at which the goods and services are offered to India," the trade official said. Early this year the commerce ministry quietly told foreign companies interested in selling aircraft, ships, drilling rigs and railway equipment to India that they stood a better chance if they bought Indian goods or services in return, the trade sources said. Illustrating the point, the official said a South Korean firm recently agreed to sell a drilling platform worth 40 mln dlrs to the state-run Oil and Natural Gas Commission.  
UK MAY REVOKE JAPANESE FINANCIAL LICENSES. The British government may revoke the licences of selected Japanese banks and securities companies operating in London's financial City when they come up for renewal next summer if progress is not made towards opening up Japan's markets to foreign competition, government sources said. "We can't say "yes, we are going to do it (revoke licences)" but this is definitely being considered," an official said. His comments came after the government was formally urged today by a cross-section of influential MPs to take joint retaliatory action with the United States against Japan. Britain has grown increasingly impatient with Japanese trade practices. "There's a sense of urgency here now, but the emphasis is on securing - not undermining - our interests in Japan," another government official told Reuters. Prime Minister Margaret Thatcher said on Thursday that Britain would not hesitate to use new powers contained in the Financial Services Act 1986 and the Banking Bill to retaliate against countries that do not offer reciprocal market access. She clearly had Japan in mind, government sources said. The U.K. Last year showed a trade defict with Japan of 3.7 billion stg, official figures show. A parliamentary motion, signed by 98 MPs, today urged the U.K. Government to "coordinate action with the President of the United States, and through the Department of Trade and Industry, to suspend all further applications from Japanese communications companies for equipment approval by the British Approvals Board for Telecommunications, and all further applications from Japanese financial institutions for licences" until authorities in Japan stopped imposing what the MPs called "restrictive conditions" on the bid by (Cable and Wireless PLC) (cawl.L) and its U.S. And Japanese partners for a stake in Japan's international telecommunications market. The motion for retaliatory steps came from a cross-section of MPs, reflecting the strength of feeling inside Parliament. Parliamentarians said their action would increase pressure on the Conservative government to take firm action. Officials said another option now being considered by the U.K. Is to refuse issuing new banking licences to Japanese institutions. That could be done under the government's proposed Banking Bill now moving through parliament. 58 Japanese financial institutions are authorised to deal in London, of which 29 are banks. In Tokyo, 14 London-based firms are authorised to do financial business, officials said. The new financial services and banking acts offer Britain an alternative for retaliation which would be otherwise denied under legally-binding international trade agreements. "The Financial Services Act gives (Trade and Industry Secretary Paul) Channon power to stop firms from engaging in investment, banking and insurance," one official said. "This point has been made to the Japanese at official level a number times," the official added. Britain and France are now working together to urge that the European Community take collective action against Japan, but by working within EC treaties, another official said. British Trade Minister Alan Clark said this week in a radio interview that the European Community should build barriers against Japanese imports through certification procedures similar to those facing European exporters in Japan. "There comes a point where you cannot resist any longer," he said, adding "(such barriers) can't be put in place overnight." Clark said the issue of reciprocity regarding visible trade "strikes at the basis of whether British industry is to have a fair access to an extremely large market (Japan) which is itself in a very dominant position (in) certain aspects of our own domestic market ... It is really a question of fairness." The situation is only likely to worsen following news that Japan's trade surplus with the rest of the world rose by more than 70 pct in February, year-on-year, to 8.14 billion dlrs from 5.7 billion in January, political sources said. But Clark said in his interview that the issues of visible trade and access to financial markets should be kept separate. Should Britain decide to act against Japanese financial institutions, it would most likely focus on the smaller, rather than larger ones, to minimise any risks to its role as a global business centre, government sources said. Japan's four largest securities houses are members of the London Stock Exchange. In Washington, White House officials said President Reagan was ready to impose retaliatory trade action against Japan for breaking its semiconductor agreement with the United States. There was no immediate indication when Reagan might act on the recommendations of his Economic Policy Council to curb Japanese exports to the United States but officials said the move could come today or early next week. Trade sources said the actions being weighed by Reagan included tariffs on a wide variety of Japanese exports which use semiconductors.  
REAGAN READY TO IMPOSE TRADE CURBS AGAINST JAPAN. President Reagan was ready to impose retaliatory trade action against Japan for breaking its semiconductor agreement with the United States, White House officials said. There was no immediate indication when Reagan might act on the recommendations of his Economic Policy Council to curb Japanese exports to the United States, but officials said the move could come today or early next week. Trade sources said the actions being weighed by Reagan include tariffs on a wide variety of Japanese exports which use semiconductors. The sources said the tariffs could be slapped on personal computers, television receivers and laser-printers, with the aim of penalizing Japan's major electronic firms, including NEC Corp, Hitachi Ltd, Toshiba Corp and Fujitsu Ltd. They said Reaan could also delay invoking sanctions for a week or two, giving Japan a final opportunity to end the dumping practice, but added that negotiators had already held extensive talks with the Japanese to no avail.  
JAPAN'S CHIP MAKERS ANGERED BY U.S. SANCTION PLANS. Japanese computer chip makers reacted angrily to news the United States plans to take retaliatory action against them for allegedly failing to live up to an agreement on trade in computer microchips. Electronic Industries Association of Japan (EIAJ) Chairman Shoichi Saba stated: "EIAJ believes that it is premature and even irrational to attempt an assessment of the impact of the agreement and our efforts to comply with it only six months after concluding the agreement." "We urge U.S. Governmental authorities to reconsider the decision made, to evaluate fairly the results of Japanese efforts in implementing the objectives of the agreement, and to resist emotional biases," he said. Yesterday, Washington announced plans to slap as much as 300 mln dlrs in tariffs on Japanese imports in retaliation for what is sees as Japan's failure to comply with the terms of the pact. The agreement, struck late last year after months of heated negotiations, called on Japan to stop selling cut-price chips on world markets and to buy more American-made semiconductors. To salvage the pact, Tokyo has instructed its chip makers to slash production and has helped establish a multi-lateral organisation designed to promote chip imports. Saba said that Japanese chip companies have pledged three mln dlrs over the next five years to the new organisation and expressed regret that no American company has seen fit to join. "This suggests that American semiconductor manufacturers may not be really interested in participating in the Japanese market," he said.  
NAKASONE SOUNDS CONCILIATORY NOTE IN CHIP DISPUTE. Prime Minister Yasuhiro Nakasone sounded a conciliatory note in Japan's increasingly bitter row with the United States over trade in computer microchips. "Japan wants to resolve the issue through consultations by explaining its stance thoroughly and correcting the points that need to be corrected," he was quoted by Kyodo News Service as saying. While expressing regret over America's decision to impose tariffs on imports of Japanese electrical goods, Nakasone said Tokyo was willing to send a high-level official to Washington to help settle the dispute. Government officials said Japan would make a formal request next week for emergency talks and that the two sides would probably meet the week after, just days before the April 17 deadline set by Washington for the tariffs to take effect. Tokyo is expected to propose a joint U.S./Japan investigation of American claims that Japanese companies are dumping cut-price chips in Asian markets. Yesterday, Washington announced plans to put as much as 300 mln dlrs in tariffs on imports of certain Japanese electronic goods in retaliation for what it sees as Tokyo's failure to live up to their bilateral chip pact. That agreement, hammered out late last year after months of heated negotiations, called on Japan to stop selling cut-price chips in world markets and to buy more American-made chips. Nakasone's comments seemed distinctly more conciliatory than those of his Trade and Industry Minister, Hajime Tamura, who earlier today said Japan was ready to take "appropriate measures" if Washington went ahead with the sanctions. Ministry of International Trade and Industry (MITI) officials later sought to downplay the significance of Tamura's remark and said that his main message was that the two sides need to talk urgently about the issue. But they admitted that Japan was considering taking the United States to GATT, the Geneva-based international organization which polices world trade, if Washington imposed the tariffs. Any Japanese action would probably be taken under Article 23 of the General Agreement on Tariffs and Trade (GATT), they said. If that article were invoked, GATT would set up a panel to consider the legality of the U.S. Action. But officials here said they hope that can be avoided. "It may be wishful thinking but there is a possibility the United States may lift its decision at an early date," Tamura said. In announcing the U.S. Sanctions yesterday, President Ronald Reagan said he was prepared to lift them once he had evidence that Japan was no longer dumping chips in world markets and had opened up its own market to imports. Japanese government officials said they are confident they can make the pact work. They said that the export of cut-price Japanese chips through unregulated distributors has all but dried up after MITI instructed domestic makers to cut output. While acknowledging that it is harder to increase Japanese imports of American chips, MITI officials said that the ministry is doing all it can to ensure that happens. The Ministry recently called on Japan's major chip users, some of whom are also leading producers, to step up their purchases of foreign semiconductors. A spokesman for one of the companies, Toshiba Corp <TSBA.T> said his firm would do just that and could announce its plans in the next week or so. He expects other Japanese companies to do likewise.  
ISLAMIC BANKS ESTABLISH 50 MLN DLR TRADE PORTFOLIO. The Islamic Development Bank (IDB) and 20 Islamic Banks signed an agreement to establish a 50 mln dlr trade portfolio to finance trade among Islamic countries, IDB sources said. They said IDB's share in the portfolio, which will only finance exports and imports of the private sector, was limited to up to 25 mln dlrs. The sources said shares in the porfolio could be traded or redeemed by the IDB, adding that this was a major step in establishing an Islamic financial market.  
TOKYO BIDS TO STOP CHIP ROW TURNING INTO TRADE WAR. Japan is seeking to prevent its computer chips dispute with the U.S. From erupting into a full-scale trade war, government officials said. "We hope that the dispute on this specific issue won't have an adverse effect on our overall relationship with the United States," a Ministry of International Trade and Industry (MITI) official said. On Friday, Washington announced plans for as much as 300 mln dlrs in tariffs on Japanese electronic goods for Tokyo's alleged failure to live up to a bilateral computer chip pact. That agreement, reached last year after heated negotiations, called on Japan to stop selling cut-price chips in world markets and to buy more American-made semiconductors. Foreign Ministry officials immediately tried to isolate the fall-out from the dispute by seeking to separate it from Prime Minister Yasuhiro Nakasone's planned trip to Washington at the end of April. While Japan has already done about all it can to make sure the chip pact is working, the government is studying measures it can take in other fields to defuse American anger and ensure the trip's success, they said. "The perception of Japan in the (U.S.) Congress is very bad," one official told Reuters. "We would very much like to do something to respond to that." In an apparent effort to prevent the chip dispute from spreading to other areas, MITI officials sought to depict the U.S. Action as a severe warning to Japanese semiconductor makers, not to the government. Faced with a belligerent domestic chip industry and an angry American Congress, the Japanese government has been forced to walk an increasingly fine line in the semiconductor dispute, trade analysts said. They said that it was an open secret that Japan's largest chip maker, NEC Corp, was not happy with what it viewed as the draconian measures MITI was taking to implement the pact, included enforced production cuts. The angry response of Japanese chip makers yesterday to the announcement of the U.S. Tariffs highlighted the difficulties the government faces in taking further action. "Japanese semiconductor manufacturers have complied with the U.S./Japan agreement," said Shoichi Saba, Chairman of the Electronic Industries Association of Japan. He accused the U.S. Of being "irrational." He said the U.S. Action had made the bilateral chip pact "meaningless." Saba's comments contrasted with those of Prime Minister Yasuhiro Nakasone, who said Tokyo wanted to solve the dispute through consultations. Japan is expected to send a high-level official to Washington early next month to try to convince the U.S. Not to go ahead with the tariffs on April 17. Trade analysts say Tokyo is likely to outline industry plans to step up purchases of U.S. Chips and to propose a joint investigation into Washington's allegations of chip dumping.  
BALDRIGE PREDICTS END OF U.S.-JAPAN TRADE DISPUTE. The United States and Japan will soon settle their trade dispute over semiconductors, U.S. Commerce secretary Malcolm Baldrige said on television. Baldrige, referring to the U.S.-Japan trade agreement on semiconductors, said: "Their government wants to live up to it. Their industries haven't been doing it, and I think we'll have a good settlement to spare both sides." "I think the Japanese understand full well that they haven't lived up to this commitment," he said. He added: "I do not think there will be a trade war at all." On Friday, Washington announced plans to put as much as 300 mln dlrs in tariffs on Japanese electronic goods from April 17, because of Tokyo's failure to observe the agreement. The officials said the tariffs would be ended as soon as Japan started adhering to the agreement. But they said there was little chance Japan could react quickly enough to avert the higher tariffs. Baldrige said the Reagan administration hoped the strong U.S. Action against Japan would convince Congress to tone down protectionist trade legislation now being drafted. He denied the action had been taken for that reason.  
JAPAN HAS LITTLE NEW TO OFFER IN MICROCHIP DISPUTE. The Japanese government appears to have little new to offer to settle a dispute with the U.S. Over computer chips, trade analysts and government officials said. The U.S. Has threatened to impose tariffs worth up to 300 mln dlrs on Japanese electronics exports to the U.S., In retaliation for Japan's alleged failure to keep a pact on the microchip trade signed last September. A Foreign Ministry official told Reuters "Japan has done what it can, and now we must persuade the United States to wait for those steps to take effect." The U.S. Alleges that, in defiance of the September agreement, Japan is still selling microchips at below cost in non-U.S. Markets and refusing to open Japan further to U.S. Chip sales. U.S. Tariffs are due to take effect on April 17. Analysts noted Japan's Ministry of International Trade and Industry (MITI) has already ordered chipmakers to cut production in order to dry up the source of cheap chips sold in third countries at non-regulated prices. "I'm not sure MITI can do much more than it has," said Jardine Fleming (Securities) Ltd analyst Nick Edwards. A MITI official said the Ministry was not planning to call for production cuts beyond those already sought, although it would continue to press chip users to buy more foreign goods. Spokesmen for some Japanese electronics firms said they would consider buying more U.S. Chips. But a Matsushita Electric Industrial Co spokesman said a rapid increase in imports was not likely. Most analysts said Japanese exporters would be hard hit if the United States did implement the tariffs, which would be levied on consumer electronics products rather than on microchips themselves. "If the tariffs remain in place for any length of time, there will be complete erosion of exports to the United States," said Tom Murtha, analyst at James Capel and Co. "The Japanese electronics industry is too powerful to be stopped altogether, but recovery for the industry will be delayed for another year," he said. Some analysts said tariffs would also harm U.S. Industry by stepping up offshore production and by reducing demand in Japan for semiconductors U.S. Firms are trying to sell here. "The American approach is full of contradictions," Jardine Fleming's Edwards said. "If they want to expand (U.S.) exports, the last thing they want to do is hit the makers of the final products because that hurts the final market," Edwards said. But other analysts said the dispute reflects not just U.S. Concern over what it sees as a strategic industry, but also frustration with Japan's vast trade surplus. Some analysts argued that to solve the semiconductor problem Japan may have to take action beyond that pledged in the semiconductor pact. Carole Ryavec, an analyst at Salomon Brothers Asia Ltd, said "The major overall issue is to stimulate the domestic economy and move away from an export-dependent economy."  
NAKASONE SOUNDS CONCILIATORY NOTE IN CHIP DISPUTE. Prime Minister Yasuhiro Nakasone sounded a conciliatory note in Japan's increasingly bitter row with the United States over trade in computer microchips. "Japan wants to resolve the issue through consultations by explaining its stance thoroughly and correcting the points that need to be corrected," he was quoted by Kyodo News Service as saying. While expressing regret over America's decision to impose tariffs on imports of Japanese electrical goods, Nakasone said Tokyo was willing to send a high-level official to Washington to help settle the dispute. Government officials said Japan would make a formal request next week for emergency talks and that the two sides would probably meet the week after, just days before the April 17 deadline set by Washington for the tariffs to take effect. Tokyo is expected to propose a joint U.S./Japan investigation of American claims that Japanese companies are dumping cut-price chips in Asian markets. On Friday, Washington announced plans to put as much as 300 mln dlrs in tariffs on imports of certain Japanese electronic goods in retaliation for what it sees as Tokyo's failure to live up to their bilateral chip pact.  
TOKYO BIDS TO STOP CHIP ROW BECOMING TRADE WAR. Japan is seeking to prevent its computer chips dispute with the U.S. From erupting into a full-scale trade war, government officials said. "We hope that the dispute on this specific issue won't have an adverse effect on our overall relationship with the United States," a Ministry of International Trade and Industry (MITI) official said. On Friday, Washington announced plans for as much as 300 mln dlrs in tariffs on Japanese electronic goods for Tokyo's alleged failure to live up to a bilateral computer chip pact. That agreement, reached last year after heated negotiations, called on Japan to stop selling cut-price chips in world markets and to buy more American-made semiconductors. Foreign Ministry officials immediately tried to isolate the fall-out from the dispute by seeking to separate it from Prime Minister Yasuhiro Nakasone's planned trip to Washington at the end of April. While Japan has already done about all it can to make sure the chip pact is working, the government is studying measures it can take in other fields to defuse American anger and ensure the trip's success, they said. "The perception of Japan in the (U.S.) Congress is very bad," one official told Reuters. "We would very much like to do something to respond to that." In an apparent effort to prevent the chip dispute from spreading to other areas, MITI officials sought to depict the U.S. Action as a severe warning to Japanese semiconductor makers, not to the government. Faced with a belligerent domestic chip industry and an angry American Congress, the Japanese government has been forced to walk an increasingly fine line in the semiconductor dispute, trade analysts said. They said that it was an open secret that Japan's largest chip maker, NEC Corp, was not happy with what it viewed as the draconian measures MITI was taking to implement the pact, included enforced production cuts. The angry response of Japanese chip makers yesterday to the announcement of the U.S. Tariffs highlighted the difficulties the government faces in taking further action. "Japanese semiconductor manufacturers have complied with the U.S./Japan agreement," said Shoichi Saba, Chairman of the Electronic Industries Association of Japan. He accused the U.S. of being "irrational." He said the U.S. action had made the bilateral chip pact "meaningless." Saba's comments contrasted with those of Prime Minister Yasuhiro Nakasone, who said Tokyo wanted to solve the dispute through consultations. Japan is expected to send a high-level official to Washington early next month to try to convince the U.S. Not to go ahead with the tariffs on April 17. Trade analysts say Tokyo is likely to outline industry plans to step up purchases of U.S. chips and to propose a joint investigation into U.S. allegations of chip dumping.  
BALDRIGE PREDICTS END OF U.S.-JAPAN TRADE DISPUTE. The United States and Japan will soon settle their trade dispute over semiconductors, U.S. Commerce secretary Malcolm Baldrige said on television. Baldrige, referring to the U.S.-Japan trade agreement on semiconductors, said: "Their government wants to live up to it. Their industries haven't been doing it, and I think we'll have a good settlement to spare both sides." "I think the Japanese understand full well that they haven't lived up to this commitment," he said. He added: "I do not think there will be a trade war at all." On Friday, Washington announced plans to put as much as 300 mln dlrs in tariffs on Japanese electronic goods from April 17, because of Tokyo's failure to observe the agreement. The officials said the tariffs would be ended as soon as Japan started adhering to the agreement. But they said there was little chance Japan could react quickly enough to avert the higher tariffs. Baldrige said the Reagan administration hoped the strong U.S. Action against Japan would convince Congress to tone down protectionist trade legislation now being drafted. He denied the action had been taken for that reason.  
YUGOSLAV TRADE FALLS SHARPLY  STATISTICS SHOW. Yugoslav trade is declining rapidly this year in hard currency terms, according to the latest Federal Statistics Office (FSO) figures. The FSO figures showed total exports from January 1 to March 23 valued at 875.59 billion dinars, compared with 667.18 billion dinars in the same period last year. These figures were down by 12.5 pct on last year in dollar terms due to exchange rate fluctuations and changes in how the figures were calculated, FSO sources said. This year current exchange rates were used for the first time instead of a fixed rate of 24.53 dinars to the dollar. BELGRADE, March 30 - Yugoslav trade is declining rapidly this year in hard currency terms, according to the latest Federal Statistics Office (FSO) figures. The FSO figures showed total exports from January 1 to March 23 valued at 875.59 billion dinars, compared with 667.18 billion dinars in the same period last year. These figures were down by 12.5 pct on last year in dollar terms due to exchange rate fluctuations and changes in how the figures were calculated, FSO sources said. This year current exchange rates were used for the first time instead of a fixed rate of 24.53 dinars to the dollar.  
ECONOMIC SPOTLIGHT - U.S. CONGRESS RAPS JAPAN. The U.S. Congress is making Japan, with its enormous worldwide trade surplus, the symbol of the U.S. trade crisis and the focus of its efforts to turn around America's record trade deficit. "Japan has come to symbolize what we fear most in trade: the challenge to our high technology industries, the threat of government nutured competition, and the multitude of barriers to our exports," Senate Democratic Leader Robert Byrd said. "If we can find a way to come to terms with Japan over trade problems, we can manage our difficulties with other countries," the West Virginia Democrat said at a Senate Finance Committee hearing on the trade bill. Byrd and House Speaker Jim Wright, a Texas Democrat, have made trade legislation a priority this year and a wide-ranging bill is being readied for probable House approval next month. Japan's bilateral trade surplus jumped from 12 billion dlrs in 1980 to 62 billion dlrs last year. Its surplus rose to 8.14 billion dlrs in February from 5.7 billion dlrs in January. Congress points to the record 169 billion dlrs U.S. trade deficit in 1986 and the slow response in the trade imbalance to the dollar's decline in world currency markets as a reason to press Japan to buy more U.S. goods. They are particularly dismayed by the rapid deterioration in U.S. exports of sophisticated computer technology. In response to the growing anger and pressure by the U.S. semiconductor industry, President Reagan Friday announced he intended to raise tariffs as much as 300 mln dlrs on Japanese electronic goods in retaliation for Japan's failure to abide by a 1986 U.S.-Japanese semiconductor agreement. Congress also has been been angered by the administration's lack of success with Japan on a host of other trade issues including beef, citrus, automobile parts, telecommunications goods, and financial services. The bulk of the House trade bill was written last week in four committees. It is a package of trade sanctions and measures to force the administration take tough action against foreign trade barriers and unfair competition. Although most provisions do not single out Japan, in many cases their impact would be to restrict imports of Japanese products or make them more expensive with higher duties. The cornerstone of the trade legislation passed the House Ways and Means Committee by a vote of 34 to 2. Its focus is to force President Reagan to retaliate against unfair foreign competition and to make it easier for U.S. industries to win temporary relief from surges in imports. The most controversial issue, an amendment to restrict imports if countries such as Japan with large surpluses do not buy more U.S. goods was left for an April vote by the House. Rep. Richard Gephardt, a Democratic presidential aspirant from Missouri, has the support of Wright and other key Democrats to press for passage of the amendment. The measure would have the most impact on Japan, West Germany, Taiwan and South Korea. If Japan, for example, does not reduce its barriers by mid-1988, the United States would set import quotas or tariffs to cut Japanese surplus by ten per cent a year for three years. "I'm tired of going into companies and having managers say to me, 'We're not over competing in Japan because we can't compete in the marketplace.' That argument needs to be taken away from American business," Gephardt said. The administration has said it could not support a trade bill containing such a provision.   
U.S. TRADE OFFICIAL SAYS JAPAN ACTION FOOLISH. A high level U.S. trade official said it would be foolish for Japan to strike back against the United States for its sanctions on Japanese semiconductor electronics products. Asked by reporters if Japan was expected to retaliate against U.S. exports, Deputy Under Secretary of Commerce Bruce Smart replied, "That would be the height of foolishness." In addition, he doubted Japan could show enough progress in meeting the conditions of the agreement to avoid the actual imposition of the 300 mln dlrs in tariffs on April 17. Japan's 58.6 billion dlr trade surplus with the United States last year has come under fire in Congress concerned about the loss of jobs to foreign competition and with the record 169 billion dlrs U.S. trade deficit in 1986. President Reagan's sanctions decision won praise today from the two Democratic leaders of Congress. "I think it's about time," Senate Democratic Leader Robert Byrd of West Virginia told reporters. House Speaker Jim Wright of Texas told reporters before the opening of the House session, "It just shows we were right all along when we said something needs doing." Smart testified before a Senate Labor Committee hearing that last Friday's U.S. trade action would help U.S. negotiations on access to Japan for U.S. auto parts. Since last August Smart has been leading talks to open up Japan to purchases of more U.S.-made automotive parts. Last year, Japan racked up a 3.6 billion dlr trade surplus with the United States in these products. Both countries expect to conclude the talks by August 1987. "It's amazing to me that the Japanese were surprised. I hope it will persuade them we're serious," Smart said of the White House trade sanctions. The United States has tried to convince Japanese car companies of the quality of American-made parts and to draw them away from their traditional Japanese suppliers. "All we ask is a chance. We have a job to do persuading them we can do better than our reputation seems to be," he said. Measured per car, each American-made car contained about 700 dlrs in Japanese auto parts while each Japanese-made car contained about 26 dlrs in U.S. auto parts, Smart said.  
EUROPEAN COMMUNITY TO SET UP OFFICE IN PEKING. China and the European Community (EC) signed an agreement on the establishment of an EC office here. Chinese vice-foreign minister Zhou Nan and the EC's external relations commissioner, Willy De Clercq, signed the accord. EC sources said the office was likely to open in the second half of this year. In 1986 the EC was China's third largest trading partner, with Chinese imports from the EC worth 5.7 billion dlrs and exports worth 2.6 billion dlrs. De Clercq told the official China Daily that more joint ventures should be set up in China as a way of reducing China's trade deficit with the EC. The EC's affairs in China are currently looked after by whichever country holds the group's six-monthly rotating presidency, now held by the Belgians until the Danes take over in July.  
TRADE FRICTION THREATENS TO TOPPLE NAKASONE. Prime Minister Yasuhiro Nakasone may have been dealt a fatal political blow by the yen's renewed rapid rise and the threat of a trade war with the United States, political analysts said. Nakasone, already under fire over an unpopular tax reform plan, may now be forced to resign before the June economic summit of seven industrialised nations if local elections later next month go against candidates from his ruling Liberal Democratic Party (LDP), they said. "The close relationship between Nakasone and President Reagan was an important element of Nakasone's power base," Waseda University Political Science Professor Mitsuru Uchida told Reuters. "So the emergence of U.S. Criticism damages Nakasone." Even before the latest trade friction flared, Nakasone was encountering criticism not only from opposition parties but also within his own LDP over his proposal to levy a sales tax. "Many factions within the LDP are distancing themselves from Nakasone," Uchida said. "His position within the LDP itself is not so strongly established today." Nakasone, who has been more popular with the general public than with many LDP members, is now seeing his public support eroded, the analysts said. The yen's rise to record highs and the U.S. Threat on Friday to impose tariffs on Japanese electronics goods in retaliation for Japan's alleged violation of a microchip trade pact are now giving Nakasone's critics fresh ammunition, the analysts said. "Apparently the special relationship between Reagan and Nakasone hasn't worked effectively," Rei Shiratori, director of the Institute for Political Studies in Japan, said. This is making the Japanese people doubt Nakasone's credibility, Shiratori told Reuters. The cumulative impact of the sales tax issue, the yen's rise and mounting trade friction could mean serious LDP losses in the April 11 and 26 local elections, analysts said. "If the elections go against the LDP, Nakasone may have to resign early," Shiratori said. But Nakasone still has a chance to soothe U.S. Tempers before or during his week-long Washington visit from April 29, some analysts said. However, "unless the Japanese political system can move more quickly to give Nakasone some nice present to take to Washington on smouldering trade issues, he will face a very hostile audience," said Merrill Lynch Securities economist William Sterling. "If the trip is a major disaster, it would seem to put the final nail in his coffin," he said. Reagan's own weakened domestic position, and growing Republican as well as Democratic anger with Japan, argue against a quick settlement to the trade dispute, the analysts said. But a desire on both sides to find some solution, coupled with uncertainty at home and abroad over likely successors to Nakasone, could still lead to an attempt to paper over the differences and aid Nakasone, they said. "One factor against a trade war may be that Washington is not anxious to push Nakasone into his grave," Sterling said.  
EUROPE ON SIDELINES IN U.S-JAPAN MICROCHIP ROW. Rising imports of Japanese-made cars and electronic goods may upset West European officials, but they generally seem prepared to stay on the sidelines in the latest trade row between the United States and Japan. Japan's huge trade surplus is a sore point in West Europe, as it is in the United States. But U.S. Charges of unfair trade practices involving computer microchips leave Europeans cold. The European Community ran a 18.2 billion dlr trade deficit with Japan last year, and seeks redress when it feels Japanese trade policy hurts Europeans, diplomats and economists said. But only in Britain has there been any suggestion of acting with the U.S. To do something about Japan's huge trade surplus. "The EC is no more illiberal on trade issues than is the U.S.," said Martin Wolf, director of studies at the Trade Policy Research Centre in London. "Basically, their policies are pretty much the same." But that did not mean Europe would support the U.S., Or that the EC would climb on the bandwagon to take advantage of the U.S. Dispute to press its own claims, Wolf said.Basically, Europeans have a different approach to trade problems, he said. "In the U.S., People talk about fair trade, but not here," he added. "In the U.S., It all has to do with the general ethic of free competition, while in Europe, the general approach is that liberal trade is good because it makes countries rich." Wolf said this basic U.S. Attitude explains Washington's tendency to impose so-called "countervailing duties" - an import tax designed to offset advantages alleged to be unfair. In Western Europe, the approach to trade disputes tends to be to try to reach a settlement through negotiation, Wolf said. In the latest U.S.-Japan trade row, President Reagan has threatened to raise tariffs on selected Japanese electronic goods by as much as 300 mln dlrs, alleging that Japan has failed to abide by a 1986 U.S.-Japan pact on microchip trade. But the European Community has challenged the agreement as a violation of General Agreement on Tariffs and Trade (GATT) practices that discriminates against its microchip producers. "It follows that they're not likely to rally to the side of the United States in defence of the agreement," said Wolf. Although British parliamentarians are pushing for a tough line on Japanese trade issues, government officials in the rest of Europe told Reuter correspondents they would let the EC take the lead in any response to the U.S.-Japan trade row. A spokeswoman for the EC Commission in Brussels told Reuters there has been no change in the Community's position since a March 16 meeting of foreign ministers which sent a strong warning to Tokyo on trade imbalances. In a statement issued after that meeting, EC foreign ministers deplored Japan's continued trade imbalance and appealed for a greater Japanese effort to open up its markets. EC External Trade Commissioner Willy De Clercq said after the talks there was a growing impatience with Japan in the EC. Diplomats accredited to the EC in Brussels said they saw no signs of any immediate intention to impose any broad-ranging sanctions against Japan. The EC is anxious to avoid provoking a trade war, they said. Instead, the Community is trying to target problem areas in European trade with Japan, including wines and spirits, cosmetics, and financial services, and will continue talking to try to improve the situation, the diplomats said. In Britain, where the government is angered over the difficulties telecommunications giant Cable and Wireless has faced in its bid to crack the Japanese market, officials said last week that retaliatory action is being considered. But government officials said last night, "We are not talking about days or weeks. This is going to take time." They said the government would consider its options at a cabinet meeting on Thursday, but added that no final decisions were expected. The main thing the British would threaten the Japan with is denial of access to London's booming financial markets, government officials said.  
THATCHER SAYS TRADE TARGETS SET WITH MOSCOW. British Prime Minister Margaret Thatcher said she and Soviet Premier Nikolai Ryzhkov had set targets for increased trade between the two countries during talks earlier today. She said she hoped more economic exchanges between Britain and the Soviet Union "will also lead to increased friendship and increased understanding." Earlier, she told a meeting of Soviet and British businessmen that she had agreed with Ryzhkov that they would work to achieve a total volume of 2.5 billion roubles in bilateral trade by 1990. This would entail an increase by each side of 350 to 400 mln stg over their present export levels. "Mr Ryzhkov handed me a list of import and export opportunities which I hope you will all jump at," she told the meeting to mark the opening of new offices of the British- Soviet Chamber of Commerce. After her talks with Ryzhkov, Thatcher and the Soviet Premier were joined for the signing of agreements covering new scientific and cultural exchanges by Kremlin leader Mikhail Gorbachev, who had nine hours of talks with her yesterday.  
JAPAN TO CUT MICROCHIP OUTPUT, BOOST IMPORTS. Leading domestic semiconductor makers will boost imports and cut production of key memory microchips from next month in line with government attempts to ward off U.S. Trade sanctions, company spokesmen said. The moves might persuade the U.S. To call off the sanctions, despite obstacles to full implementation of the plans, analysts said. The tariffs will affect about 300 mln dlrs worth of products and are in retaliation for Japan's alleged failure to honour a semiconductor trade pact. In announcing the sanctions last Friday, President Reagan said Japan had not fulfilled its promise to halt predatory pricing and open Japan's market to foreign products. But U.S. Trade representative Clayton Yeutter said yesterday on U.S. Television that the U.S. Is willing to drop the tariffs if Japan shows a "clear indication" that it will open its markets to U.S. Goods. The Ministry of International Trade and Industry (MITI) has urged producers to slash output of the chips by 11 pct in the second quarter, following a call to reduce production by more than 20 pct the previous quarter. MITI also urged makers to boost chip imports. Analysts said the moves could encourage Washington to cancel the tariffs ahead of next month's meeting between Prime Minister Yasuhiro Nakasone and President Reagan. "The U.S. Wants to be satisfied. It has rattled its sword and shown that it can and will do business," said analyst Nick Edwards at Jardine Fleming Securities Ltd in Tokyo. But analysts cautioned that although Japanese producers can cut output, boosting imports -- the key to U.S. Withdrawal of the sanctions -- is more difficult. "The U.S. Does not have the low-end consumer IC's (integrated circuits) that the Japanese need for consumer products. They're well supplied here," said Richard May, senior analyst at Barclays de Zoete Wedd Ltd in Tokyo. The U.S. Leads in production of medium and high-end IC's, but Japanese makers are keen to develop their own high-end production skills, the analysts said. "The Japanese must be prepared to trade some losses on semiconductors in return for free access to other areas," said Edwards. A spokesman for Hitachi Ltd <HIT.T>, said the firm's reduced output of 256 kilobit dynamic random access memory (256K DRAM) was unrelated to MITI's efforts to ward off the trade sanctions. Decreased production was a natural result of the company increasing output of one-mln bit DRAM's, he said. Company officials unveiled the following plans - - NEC Corp <NESI.T>, Japan's largest chipmaker, plans to slash production of 256K DRAM semiconductors by 29.41 pct to six mln per month from a monthly average of 8.5 mln last quarter. In the year beginning April 1, NEC will boost chip imports, which comprised some 20 pct of all NEC chip consumption the year before. - Hitachi Ltd's <HIT.T> April output of 256K DRAM's will fall by 25.93 pct to four mln compared to 5.4 mln in March. The company is trying to boost imports but has not set a specific target. Imports are currently very low. - Toshiba Corp <TSBA.T> will reduce April 256K DRAM production by 16.67 pct to just over four mln and is considering ways to boost imports, a company official said. Toshiba has an agreement with Motorola Inc (MOT.N) to sell the U.S. Firm's chips in Japan. The firms are planning a joint-venture production of memory chips in Sendai, northern Japan. - Mitsubishi Electric Corp (MIET.T) will trim second quarter output by about 10 pct to between 5.5 mln to 5.6 mln chips compared to the first quarter. Plans call for increased imports but an official said "boosting imports will be difficult as it depends on sales demand." - Fujitsu Ltd (ITSU.T) will cut production in accord with MITI guidelines and boost imports from currently low levels. - Oki Electric Industry Co Ltd (OKIE.T) will reduce April production by 10 pct from March's 3.2 mln. Oki is studying ways to increase imports by 10 pct in the fiscal year beginning April 1 from the previous year's total of more than five billion yen, a company official said.  
31-MAR-1987. 31-MAR-1987 
JAPAN WILL ASK COMPANIES TO BOOST IMPORTS. Japan's Minister of International Trade and Industry, Hajime Tamura, will meet representatives from 151 of the nation's largest companies next week and appeal to them to do their best to increase imports, ministry officials said. The meeting was unveiled as part of a plan to boost imports and help head off protectionist legislation in the U.S. Senior officials from the Ministry of International Trade and Industry told reporters that such personal appeals appeared to have paid off in the past, as Japanese imports of manufactured goods have climbed. Leading domestic semiconductor makers will boost imports and cut production of key memory microchips next month in an attempt to help ward off U.S. Trade sanctions, company spokesmen said. The officials also said they expect the government's new trade insurance law to boost imports and encourage Japanese companies to set up production facilities overseas. Under the new law, the government will insure Japanese companies who pre-pay for imports against loss arising from everything from war to bankruptcy of the foreign firm they are dealing with. MITI estimated that it would help solve Japan's trade problem to the tune of about $10 billion dlrs a year.  
U.S./JAPAN TRADE WAR NOT IN UK'S INTEREST - LAWSON. U.K. Chancellor of the Exchequer Nigel Lawson said the United States and Japan must work to avert a possible trade war, and he added that a trade war would not be in the interests of Britain. Lawson told journalists that "the prospects for the (U.K.) economy look very very good - providing we can avoid a trade war." He stressed that "a heavy responsiblity in different ways lies on Japan and the United States to ensure that we do avoid such a trade war." Asked whether he believed such a trade war could be averted, Lawson replied, "I very much hope so." Britain last week warned that it would retaliate if Japan did not move soon to open its markets to outside competition. Prime Minister Margaret Thatcher gave notice that the U.K. Would fight the Japanese government's attempt to prevent (Cable and Wireless Plc) (CAWL.L) from taking a significant position in a new Japanese international telecommunications venture. But British officials are now trying to dampen anti-Japanese rhetoric, to try to keep developments under control. The British Conservative government will on Thursday consider what legal options are available to it to try to increase U.K. Access to Japanese markets, officials said.  
EC APPROVES MEDITERRANEAN FINANCIAL PACKAGES. EC ministers have approved financial packages for several Mediterranean states totalling 1.6 billion European currency units, an EC official said. The packages, part of special EC trade agreements with Tunisia, Egypt, Lebanon, Israel, Algeria, Morocco and Jordan until 1992, include 615 mln Ecus in grants, he said. They include one billion Ecus in loans from the European Investment Bank, the EC long-term financing arm. The framework for the transfers was signed yesterday by EC farm ministers after being agreed in principle by foreign ministers earlier.  
SOVIET UNION SEEN WATCHING CHINA GATT APPLICATION. China's application to join the General Agreement on Tariffs and Trade (GATT) is seen as a test case by the Soviet Union, which will probably demand to follow China, a top European Community official said. Willy de Clercq, External Relations Commissioner of the European Communities, told a news conference that China's application would involve long and difficult negotiations. China formally applied to join GATT in July 1986 and in February presented a memorandum backing its application, which De Clercq said was now being studied. Questions would then be presented to China. "After China, other important state-trading countries including the Soviet Union, will probably demand accession. China's application could be considered a test case," he said. He said the EC strongly backed China's application, but others among GATT's 92 contracting parties took a tougher line. Among the numerous problems of a huge centrally-run economy entering a free trade system are tariffs and reciprocity and the expectation that China will practice an open-trade policy without trade discrimination, de Clercq added. De Clercq noted the different dimensions of the Chinese economy and those of Hungary and Yugoslavia, the two current Socialist GATT members. On China's import potential, he said a foreign exchange shortage would force China to import less this year and next than in the past, with an emphasis on technological equipment and capital. During his visit, De Clercq has met top Chinese leaders and today signed an agreement to open a European Community Commission office in Peking.  
U.S. SENATE LEADERS SEE NO TRADE WAR BREWING. The Senate's Democratic and Republican leaders praised President Reagan for retaliating against Japan for violating a semiconducter accord but dashed cold water on ideas it was the first shot in a trade war. Senate Democratic Leader Robert Byrd and Republican leader Bob Dole both told the Senate Reagan's decision was long overdue and urged Japan to open its markets to U.S. goods and stop dumping on world markets. Each noted in separate speeches that they saw no trade war over the issue, despite concerns in financial markets. "That fear has no basis in fact," Byrd said.  
YEUTTER SAYS STOCK MARKET OVERREACTED TO JAPAN TRADE DISPUTE.  YEUTTER SAYS STOCK MARKET OVERREACTED TO JAPAN TRADE DISPUTE  
U.S. STOCK MARKET OVERREACTS TO TARIFFS - YEUTTER. U.S. Trade Representative Clayton Yeutter said the stock market overreacted to a U.S. decision last week to proceed with tariffs on some Japanese computer products. Speaking to reporters prior to testifying at a House Agriculture Committee hearing, Yeutter said it is "difficult to comprehend" that a trade decision affecting only 300 mln dlrs in goods caused the stock market collapse yesterday. "I have a hunch a lot of other things were involved in that (stock market fall), including simple profit-taking," Yeutter said. Yeutter said Japan would be sending a senior official from its trade ministry to Washington next week for talks on the computer chip dispute. "We will be glad to have him here, but that's not going to affect a decision that's already been made," Yeutter said. The decision announced last week would apply higher tariffs on a range of Japanese products in retaliation for the alleged failure of Tokyo to honor an agreement with the U.S. on semiconductor trade.  
ENVOY ADVISES NAKASONE TO PREPARE FOR U.S. VISIT. The Japanese ambassador to the U.S. Suggested that Prime Minister Yasuhiro Nakasone make efforts to present "advanced' proposals on trade issues when he visits Washington next month. Ambassador Nobuo Matsunaga made the recommendation at a meeting with Nakasone, Kyodo News Service said. Matsunaga also advised that the prime minister should be prepared to discuss U.S.-Japan economic issues. Matsunaga cited issues such as a U.S.-Japan micro chip trade pact, foreign access to the Kansai international airport project, and a new international telecommunications firm. Matsunaga returned on Sunday to report to Japanese leaders on recent U.S. Developments over trade, in preparation for Nakasone's visit to Washington, April 29 to May 5. Kyodo quoted Nakasone as telling reporters after meeting the envoy, "I entirely accept what ambassador Matsunaga recommended." Nakasone did not elaborate. The U.S.-Japan trade dispute intensified last week when President Ronald Reagan said the U.S. Would impose heavy tariffs on Japanese imports in retaliation against alleged Japanese breach of the computer chip trade pact. Meanwhile, Nakasone's ruling Liberal Democratic Party (LDP) is to consider measures to boost imports and open up the Japanese market, such as government purchase of supercomputers and expanding foreign access to the Kansai airport project, party sources said. The LDP international economic affairs council was responding to Nakasone's request for measures to reduce Japan's increasing trade surpluses with the U.S. And Europe, they said.  
TREASURY'S BAKER SEES 15-20 BILLION DLR U.S. TRADE DEFICIT REDUCTION THIS YEAR.  TREASURY'S BAKER SEES 15-20 BILLION DLR U.S. TRADE DEFICIT REDUCTION THIS YEAR  
TREASURY'S BAKER SEES SMALLER TRADE DEFICIT. Treasury secretary James Baker predicted the U.S. trade deficit would decline 15-20 billion dlrs this year. However, he acknowledged signs were still lacking on such a decline. "We think we are beginning to see changes," he told the House Appropriations Committee. "It has begun to level off (but) we don't see it beginning to go down yet," he told the panel.  
TREASURY'S BAKER NOT CONCERNED BY BOND DECLINES. Treasury Secretary James Baker, asked whether he was concerned about yesterdays precipitous decline in bond prices, said he was not. Questioned by reporters as he left a House committee hearing, Baker said "no," when asked about the bond decline, adding that it was a reflection of concern about the possibility of a trade war. "It is what the markets think would be the adverse consequences of a trade war." He said the administration was concerned that protectionism would lead to international trade problems adding that he thought the action against the Japanese was still consistent with this policy.  
U.S.-JAPAN NOT IN TRADE WAR, YEUTTER SAYS. The United States and Japan are not involved in a trade war, despite U.S. sanctions announced last week against Japanese semiconductors, U.S. Trade Representative Clayton Yeutter said. "In my judgement, we're not even close to a trade war," Yeutter told a House Agriculture Committee hearing. Yeutter said if Japan takes action to honor its agreement with the U.S. on semiconductor trade, "Then the retaliatory response will last a relatively short period." Yeutter said Japan must stop dumping chips in third countries and buy more American computer chips.  
CHIRAC, REAGAN DISCUSS ARMS CONTROL, TRADE. French Prime Minister Jacques Chirac opened talks with President Ronald Reagan expected to focus on superpower arms control moves and trade issues. French officials said a major aim of Chirac's visit was to present France's concern that the United States might ignore European security interests in any accord with Moscow on removing medium-range nuclear missiles from the continent. But Reagan was expected to assure Chirac that he will not agree to a deal at the Geneva superpower talks that would give the Russians superiority in shorter-range systems, diplomats said. France has expressed doubts about removing U.S. missiles from Europe so long as the Soviet Union maintains an edge in other weaponry, particularly shorter-range rockets, conventional forces and chemical weapons. Speaking last night, Chirac set out the French position saying: "Any agreement on intermediate nuclear forces should mention how equality can be achieved in short-range missiles." Reagan and Chirac meanwhile signed an agreement ending a dispute between two leading research institutes over patent rights to a blood screening test for the deadly disease AIDS. In a joint statement, Chirac and Reagan said the Pasteur Institute in Paris and the National Cancer Institute, of Bethesda, Maryland, agreed to give part of the royalties from the test to a new foundation dedicated to the wordwide fight against AIDS (Acquired Immune Deficiency Syndrome). "This agreement opens a new era in Franco-American cooperation, allowing France and the United States to join their efforts to control this terrible disease in the hopes of speeding the development of an AIDS vaccine and cure," Reagan said at the signing ceremony. He said the two parties would share the patent and give 80 per cent of the royalties received to the new foundation. The foundation would also raise private funds and would donate 25 per cent of its money to combat AIDS in less developed countries. Both leaders stressed the long ties between France and the United States during a welcoming ceremony in the White House East Room, with Reagan describing France as "America's oldest ally in war and peace." "I have come to tell you that we are remain motivated by the same ideals of freedom, by the same will to face the dangers which we both confront -- terrorism, war, hunger, poverty, new diseases and drugs," Chirac replied. But the two countries are likely to have less to agree on over the issue of trade, where Chirac is worried about a rise in protectionism in the U.S. Congress. A senior U.S. official yesterday dismissed a French idea to sell cut-price grain to poor countries in Africa as a way of lessening surplus stocks. Chirac is expected to canvass support for the idea, first proposed by French Agriculture Minister Francois Guillaume, during his two-day visit to Washington. The U.S. official described the idea as a "grain producers' OPEC" -- a reference to the Organization of Petroleum Exporting Countries -- and said it went against the Reagan administration's desire to lessen government intervention in trade.  
REAGAN RENEWS ANTI-PROTECTIONISM STAND, WHITE HOUSE SAYS TRADE WAR UNLIKELY.  REAGAN RENEWS ANTI-PROTECTIONISM STAND, WHITE HOUSE SAYS TRADE WAR UNLIKELY  
TRADE WAR FEARS MAY PROMPT STOCK MARKETS' DOWNTURN. The threatened trade war between the United States and Japan is just the kind of shock that economists say could send world stock markets into a tailspin. But they are not so sure if that would be a brief corrective dip, or whether this week's falling share prices mark the start of a "bear" market. "It's the billion dollar question," said Richard O'Brien, economist at American Express International Bank in London. Japan's trade surplus -- 92.7 billion dlrs last year -- has poured into share and bond markets around the world, and funded a good chunk of the huge U.S. Budget deficit. Around a third of any new sale of U.S. Treasury bonds has been bought by the Japanese. However, Japanese investors have lost money as the dollar falls and will lose more if the United States lets it fall further to cut the trade deficit. The counterpart of improving the trade deficit either through a lower dollar or because the U.S. Increases duties on Japanese electronic goods, may be to hit the capital inflow which has financed the budget deficit. And if the U.S. Trade deficit does fall, the Japanese will have less money to invest. To entice U.S. Investors to fill the gap that would be left if the Japanese stopped buying U.S. Bonds, interest rates would have to soar, O'Brien said. The subsequent shift from shares to bonds could cause major falls on the world stock markets. "A year ago, we could be pretty confident about the markets," said O'Brien. "Now, it is much less certain." Buoyant share prices are supposed to reflect a booming economy. But the world economy, with sluggish growth at best in the industrial nations, a massive load of Third World debt and huge trade imbalances is not in good shape, said O'Brien. Nevertheless, New York analyst William Raferty, of Smith Barney Harris Upham said  "We're still in a bull market," adding that corrections are a normal part of a rising market and "The bear usually strikes slowly." Economist Evelyn Brody, at Morgan Grenfell and Co in London, said the huge sums of money going through the world financial system will keep a floor under share and bond prices. Although interest by the Japanese in putting their money in non-dollar denominated bonds and stocks has increased it's very difficult to see where else they can put their money than in U.S. Dollars and especially the U.S. Treasury (bond) market, according to David Butcher, a senior executive at Yamaichi Securities Co Ltd's bond operation in London. He said the Japanese are paying much closer attention now to the French franc and West German mark. In the longer run, he worries about what trade tensions and the dollar's slide will mean for securities markets.  
WHITE HOUSE DISCOUNTS THREAT OF TRADE WAR. President Reagan has reaffirmed his opposition to protectionism and his chief spokesman said trade sanctions imposed on Japan were unlikely to start a trade war. "We don't want to go down that road," Reagan was quoted as telling Prime Minister Jacques Chirac after the visiting French official expressed concern about the rising tide of protectionist sentiment in the United States. Later, White House spokesman Marlin Fitzwater defended the new sanctions against Japan and said administration officials "do not believe this will result in a trade war." "It is the first time that the United States has taken an action of this type and it is significant but it is nothing to be alarmed about," the presidential spokesman added. "We do not want protectionism ... We do not want a trade war," he said. Fitzwater said the president was forced to act in the Japanese microchip case because Tokyo had failed to fulfill "an agreement to make some corrections." Noting that there are "enormous pressures in the Congress and the land" for the United States to take a tough stand, he said, "This was a case where we felt we simply had to act." Fitzwater said the decision to impose sanctions was "well considered by this administration and not taken lightly." While the White House official held open the possibility that Washington and Tokyo will settle their trade dispute, he indicated a settlement probably would not come in time to head off the sanctions. "We are always open to negotations ... Whether it (a settlement) could occur in time to prevent this (the sanctions) from going into effect is questionable at this point," the spokesman said. The sanctions take effect in mid-April.  
BALDRIGE SAYS U.S. TO GO AHEAD WITH JAPANESE SANCTIONS.  BALDRIGE SAYS U.S. TO GO AHEAD WITH JAPANESE SANCTIONS  
BALDRIGE SAYS U.S. TO IMPOSE JAPANESE SANCTIONS. Commerce Secretary Malcolm Baldrige said the United States would go ahead with planned 300 mln dlr sanctions against Japanese semiconductor exports, despite any U.S. Japanese talks to avert the trade curbs. He said in a speech to an export-import group that he was sure the United States and Japan could work out their dispute over unfair Japanese trade practices in semiconductor trade, but "I am sure the sanctions will go in before we work it out." Sanctions are to be imposed on April 17. He also said he did not think there would be a trade war with Japan, because Japan had too much value in exports to the United States to risk such a war. "Those fears are unfounded," he said. He told reporters later that the sharp drop in the securities market was not due to fears of a trade war, but fear of inflation and that the Federal Reserve may act on that fact. Market reaction was also due, he said, to the drop in the value of the dollar, although trade issues did have some effect. Baldrige said that observers who were attributing the drop in the market to trade sanctions were "barking up the wrong tree." He said the market observers will realize this shortly. Baldrige said his remarks did not mean to suggest anything about the market or the exchange rate of the dollar.  
SENIOR U.S. OFFICIAL TO VISIT JAPAN AS TRADE ROW GROWS. Undersecretary of State Michael Armacost will visit Tokyo next week for meetings with high-level officials that will include discussions of a growing trade row over Japanese semiconductor electronics products. He is the first high-level U.S. official to visit Japan since President Reagan announced last week plans to impose tariffs worth up to 30 mln dls on Japanese electronic goods on April 17 in retaliation for Tokyo's alleged failure to live up to a pact on microchip trade signed last September. The trip is set for April 6-8, the state department said.  
BROADER U.S. EEP SOUGHT BY REPUBLICAN LAWMAKERS. Republican members of the House Agriculture Committee said they will propose amendments tomorrow to a pending trade bill increasing funding for the export enhancement program, EEP, and significantly expanding the scope of the program. At a press conference, Republican lawmakers said they would propose expanding EEP to include all countries "willing to purchase additional commodities at reasonable prices." In addition, the Congressmen said they would propose extending the life of EEP to five years from the current three years and increasing the EEP funding ceiling to 2.5 billion dlrs from 1.5 billion at present. The Agriculture committee tomorrow will begin drafting amendments to an omnibus trade bill now before the House. Responding to the Republican plan, Agriculture Secretary Richard Lyng and Trade Representative Clayton Yeutter said they favor a flexible, targeted use of EEP instead of an across-the-board program which they termed too costly. The Republican Congressmen also said they will offer an amendment to the trade bill instructing the U.S. Agriculture Department to value the bonus commodities used for EEP at the market value, rather than the cost of acquisition. But Lyng said USDA already plans to change to market value accounting rather than acquisition value, in order to avoid hitting a funding ceiling for eep of 1.5 billion dlrs. Lyng said under market value accounting only about 700 mln dlrs of EEP commodities have been used to date. Using acquisition value, USDA officials said the value is higher.  
U.S. OFFICIAL TO VISIT JAPAN AS TRADE ROW GROWS. Undersecretary of State Michael Armacost will visit Tokyo next week for meetings with high-level officials that will include talks on the growing trade row over Japanese semiconductor electronics products. He is the first high-level U.S. official to visit Japan since President Reagan announced last week plans to impose tariffs worth up to 30 mln dlrs on Japanese electronic goods on April 17 in retaliation for Tokyo's alleged failure to live up to a pact on microchip trade signed last September. Deputy State Department spokeswoman Phyllis Oakley said the trip is set for April 6 to 8. U.S.-Japanese talks of this kind are regularly held each year at this time, she told reporters. The Armacost discussions with Deputy Foreign Minister Ryohei Murata and other senior Japanese officials will focus on U.S.-Japanese foreign aid programs and political security issues of mutual concern, she added. "Although an exchange of views on bilateral relations is expected, the talks are not directly related to U.S.-Japanese trade relations," she insisted. But, in response to questions, Oakley acknowledged that trade will be discussed. Japan's 58.6 billion dlrs trade surplus with the United States last year has come under fire in Congress, which is concerned about the loss of jobs to foreign competition and with the record 169 billion dlrs U.S. Trade deficit in 1986.  
31-MAR-1987. 31-MAR-1987 
U.S. OFFICIAL SEES EVIDENCE OF EXPORT GROWTH. Beryl Sprinkel, chairman of the White House Council of Economic Advisers, said he sees "growing but incomplete evidence that (U.S.) export volumes are finally strengthening." In remarks prepared for a speech today in Los Angeles, Sprinkel said the decline in the dollar's value since 1985 had "largely" restored U.S. cost competitiveness in world markets and appeared to signal an end to U.S. trade imbalances. "I am confident that further improvements in our trade performance will contribute significantly to U.S. growth in 1987," he said.  
TAIWAN'S SECOND QUARTER IMPORTS SEEN RISING. Taiwan's imports in the second quarter of 1987 are expected to rise to 7.75 billion U.S. Dlrs from 5.82 billion a year earlier and from 6.95 billion in the first quarter of this year, the statistics department said. A department official attributed the increase to growing domestic investment by the private and public sectors. It is expected to rise to 4.68 billion U.S. Dlrs from 3.79 billion a year earlier and 3.41 billion during the first quarter. Taiwan's exports in the April-June quarter are expected to rise to 12.03 billion U.S. Dlrs from 9.63 billion a year earlier and 11.28 billion in the first quarter. The official said Taiwan's trade surplus is expected to climb to 4.28 billion U.S. Dlrs in the second quarter of 1987 from 3.81 billion a year earlier. It was 4.33 billion in the first quarter of this year. Most of the surplus is expected to come from trade with the U.S., Taiwan's largest trading partner and importer of nearly 50 pct of Taiwan's total exports, he said. He said he expected Taiwan's imports, including grains, machinery and power plant equipment, from the U.S. To rise sharply because of government efforts to balance trade with Washington. He declined to give figures.  
JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED. Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japan's favour, a senior official said. "So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments," the Foreign Ministry official told reporters. Last year, Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods, raising the spectre of a trade war between the two countries. "We take the current situation very seriously," said the official, who declined to be identified. "The basic stance of the Japanese government is to tackle the issues with all available resources." The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japan's international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy.  
JAPAN WARNS OF ANTI-U.S. SENTIMENT IN TRADE ROW. Japan is sending a three-man team to Washington to try to halt threatened trade sanctions that officials warn could spark a wave of anti-U.S. Sentiment here. The team will lay the groundwork for high-level emergency talks next week aimed at defusing an increasingly bitter row over trade in computer microchips, officials said. "The sanctions are against the free trade system," Ministry of International Trade and Industry (MITI) director general Noboru Hatakeyama told reporters, adding: "If these measures are taken, the atmosphere in Japan against the United States would become not so good as before." Other officials were more blunt. "The U.S. Action will have a significant impact on the growing anti-U.S. Feeling (here)," another MITI official said. A senior Foreign Ministry official, who declined to be identified, told Reuters the U.S. Threats have undercut those in the government who argue for conciliation. "There is a very strong argument in Japan that since the United States is imposing tariffs unilaterally, why should we bother doing anything," he said. "Anything we do, we will be bashed." The senior official sounded pessimistic about the likelihood of Prime Minister Yasuhiro Nakasone defusing U.S. Anger over Japanese trade practices when he visits Washington on April 29. "I don't think trade friction will be solved all of a sudden (by the visit)," he said. Nakasone is widely expected to present a package of measures to President Reagan to help contain U.S. Frustration over Japan's large trade surplus. But the senior official played down those expectations.  
JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED. Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japan's favour, a senior official said. "So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments," the Foreign Ministry official told reporters. Last year, Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods, raising the spectre of a trade war between the two countries. "We take the current situation very seriously," said the official, who declined to be identified. "The basic stance of the Japanese government is to tackle the issues with all available resources." The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japan's international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy.  
YEUTTER SAYS U.S. SHOULD STRESS TRADE NEGOTIATIONS AS LONG-TERM U.S. TRADE POLICY.  YEUTTER SAYS U.S. SHOULD STRESS TRADE NEGOTIATIONS AS LONG-TERM U.S. TRADE POLICY  
YEUTTER STRESSES IMPORTANCE OF TRADE TALKS. U.S. Trade Representative Clayton Yeutter stressed the importance of trade negotiations to open foreign markets rather than trade restrictions in a statement to the Senate Finance Committee. "In the long term we cannot repeatedly bludgeon other nations into opening their markets with threats of U.S. restrictions. Rather, we must be able to negotiate credibly for global liberalization," Yeutter said. Yeutter did not mention the recent U.S. trade sanctions against Japanese semiconductors in his testimony on the pending trade bill. Yeutter said the trade bill should increase U.S. competitiveness, aid U.S. trade negotiating leverage, and avoid provoking foreign retaliation. He urged Congress to reject provisions that would mandate U.S. retaliation against foreign unfair trade practices. Yeutter emphasized the importance of the new multilateral trade negotiating round and called on Congress to quickly approve an extension of U.S. negotiating authority. "We want to open foreign markets and establish and enforce rules of international competition, not foster dependence on protection and subsidies," he said.  
EC MUST EXPLAIN FARM POLICY TO U.S., FRANCE SAYS. The U.S. and the European Community could enter into a new trade dispute unless urgent action is taken to explain EC farm policy to the U.S. Congress, French official sources said. They said Prime Minister Jacques Chirac planned to urge EC Commission president Jacques Delors to send a team of experts to Washington as soon as possible. Chirac returned to Paris this morning after three days of talks in New York and Washington in which trade and protectionism featured prominently. At the centre of the new trade tension is an EC Commission proposal to tax vegetable oils, the sources said.  
SWEDISH PRIME MINISTER'S CHINA VISIT BOOSTS TRADE. An big expansion in bilateral trade is expected as a result of Swedish Prime Minister Ingvar Carlsson's visit to China, a official of China's Foreign Economic Relations and Trade Ministry official said. He told the China Daily that petroleum, coal, cotton, non-ferrous metals and electric engines could help balance the trade running at over three-to-one in Sweden's favour. Total trade reached 290 mln dlrs last year, up 32 pct on 1985, according to Chinese statistics. Swedish sources said major paper mill projects and an aviation agreement would be discussed during Carlsson's one week visit.  
IMF, WORLD BANK TO MEET AMID NEW INFLATION FEARS. Amid new concerns about inflation, interest rate increases and trade confrontations, finance ministers and central bankers meet next week to discuss a deteriorating global debt and economic situation. The meetings, under the auspices of the International Monetary Fund and World Bank, come as interest rates are turning higher and the already-weak dollar has sunk further, upsetting bond and stock markets. Uncertainty is growing about the vitality of the global economy and whether the heavily-indebted countries can continue to carry the burden of their growing debt without vast new assistance. Monetary and diplomatic sources said there are no signs any new debt initiative of the sort that Treasury Secretary James Baker unveiled 18 months ago in Seoul is in the works. The strategy has drawn a serious challenge from Brazil, which suspended interest payments on 67 billion dlrs of commercial bank debt last month. The Banks have responded by laying the groundwork for writing down Brazilian loans. Separately, French Prime Minister Jacques Chirac, in a visit earlier this week with President Reagan, sounded out the administration on a plan to funnel worldwide grain surpluses to the very poorest states. The French plan is certain to be discussed by the ministers in detail during next week's meetings and will undoubtedly be embraced by the developing countries. "There's interest on the part of some countries for looking at the support of the special problems of the very poorest countries, because their position is so extreme," a Reagan administration official said. He suggested Washington was open to disussing the issue. The meetings will also assess the success of the Baker debt initiative, which called for new funding to help debtor countries grow out of their problems. The largest industrial countries have been attempting to coordinate economic policy in the hope of controlling the decline of the dollar, U.S. trade and budget deficits and other problems. At the same time, the industrial countries see little evidence of a strengthening of economic activity and the Fund forecasts they will grow 2.5 pct. The United States sees 3.2 pct growth for itself, continuing its expansion for a fifth year, and has asked other industrial countries to stimulate their economies. These issues directly affect the debt problem and the ability of the debtor countries to grow out of their difficulties. In recent years, U.S. markets have absorbed the exports of developing country, allowing them to earn critical foreign exchange. But the United States wants to cut its trade deficit, running at a record 169.8 billion dlrs, and is pressing others to import more from developing countries. The discussions, from April six to 10, will be wide-ranging, touching everything from interest rates to the impact of development loans on the environment, according to monetary sources. The talks will include an examination of trade protectionist pressures in the wake of a decision by the Reagan administration to place some 300 mln dlrs in tariffs on microchip products from Japan, the sources said. The move accelerated the dollar's decline as financial markets grew alarmed that trade war was in the offing. There is concern that the action, prompted by U.S. charges that Japan has been selling computer chip products below fair market value and has kept its own market closed to imports, further undermining the international trading system. At the same time, the ministers will discuss the fundamental price weakness in basic commodities, the export mainstay of many developing countries. The so-called Group of Five industrial countries -- the United States, Japan, West Germany, France and Britain -- will gather for the first time since their February talks in Paris, where they agreed to keep the dollar from sliding further. The Five will be joined later by Italy and Canada for further debate on economic policy coordination. As part of the Paris accord, surplus countries such as Japan agreed to stimulate their economies, while America said it would reduce its federal budget deficit. Other major issues of the meetings include a U.S. bid to to have a larger say in approving loans of the Inter-American Development Bank, strengthening the link between loans and economic policy changes in debtor nations. Washington is also pressing the World Bank to take more account of the environment when making loan for dams and other projects. The new head of the Bank, Barber Conable, has said this issue is being reviewed and will be part of a reorganization plan for the Bank, now being prepared.  
U.S., JAPANESE OPEN TALKS ON SEMICONDUCTORS. U.S. and Japanese officials meet tomorrow to try to settle a dispute over semiconductor trade and to cut short the 300 mln dlr penalty tariffs President Reagan has ordered imposed on Japanese exports. But U.S. officials held out little hope that any accord could be reached before the tariffs of 100 per cent - up from about five per cent - are to take effect on April 17. The Customs Bureau last week started to levy a bond on the Japanese goods that Reagan ordered penalized. The penalties would be retroactive to March 31. Reagan said on March 27 when ordering the tariffs that he hoped the Japanese would soon end their unfair practices in semiconductor trade and that sanctions could be lifted. Technical meetings are to be held today and tomorrow, with meetings at a more senior level scheduled for Thursday and Friday. Public hearings on the sanctions are set for April 13. The Japanese aides here for the technical talks include Shigeru Muraoka, director-general of international trade policy of the Ministry of International Trade and Industry (MITI), and Masashi Yamamoto, deputy director-general of the information and machinery bureau. Meeting with them will Glen Fukushima, director of the Japan office of the U.S. Trade Representative's Office, and Jim Gradoville, of trade representative's office of industry and services. The two sides in the Thursday and Friday talks will be headed by Deputy U.S. Trade Representative Michael Smith and MITI vice minister Makoto Kuroda.  
UK MINISTER LOOKS TO EASE TENSION WITH JAPAN. The U.K. government hopes for a breakthrough on the deadlock with Japan over trade policies during next week's visit to Tokyo by Corporate Affairs Minister Michael Howard, political sources said. Howard, who leaves for Japan tomorrow, told Reuters he will try to promote understanding on trade issues during his visit. Meanwhile, Britain will re-examine a letter from Japanese Prime Minister Yasuhiro Nakasone promising personal help in solving the row over a U.K. firm's bid to win a significant role in Japan's telecommunications market, government sources said. Tensions have risen following Britain's decision to arm itself early with new statutory powers which it says could be used against certain Japanese financial institutions. Britain reacted optimistically at first to the letter from Nakasone to Prime Minister Margaret Thatcher, seeing it as a signal that he would work towards ensuring a satisfactory outcome to the bid launched by Cable and Wireless Plc, government officials said. But this view has since been clouded by reports from Tokyo that Nakasone's assurances really constituted little more than politeness in the face of British anger, they added.  
CONABLE WARNS PROTECTIONISM MIGHT SPREAD. World Bank President Barber Conable expressed concern that trade protectionism, at the heart of a new showdown between the United States and Japan, might spread throughout the industrial world. But in an interview with Reuters, Conable said the action by the United States to slap tariffs on certain electronic goods from Japan did not mean the countries were heading for a full-scale trade war. Conable said the World Bank has been pressing developing countries to open their markets, arguing that a free trading environment increased the possibility of global economic growth. "We have, in fact, been making adjustment loans to many countries in the developing world which have encouraged the opening of their markets and we want to be sure that the developed world doesn't close at the same time," he said. He said the U.S. action against Japan was "a significant retaliatory step but it did not constitute a basic change in trade policy." The interview came just before next week's semi-annual meetings of the Bank and the International Monetary Fund. Referring to Brazil's recent interest payments moratorium, Conable also said the global debt situation was very serious and must be closely watched. He said the Bank, which in the past has concentrated on making loans that assist the basic underpinnings in the developing world such as dams, roads and sewers, will increasingly make assistance available for economic reform. The Bank has increased these loans, in part because of the debt crisis that has found countries desperately in need of new funds for balance of payments adjustment and economic reforms aimed at opening their markets, encouraging foreign investment and reducing government's role in the economy. "We're comfortable with adjustment lending, we expect, however, that it will never reach a majority of our portfolio," Conable said. He made clear, however, that adjustment lending would continue to increase as a proportion of overall Bank lending for some time. He noted, "the problem of debt was a severe one and many countries are asking for adjustment assistance because of the problem of debt." Conable, is a a former Republican Congressman from New York chosen by President Reagan for the Bank position last year. He is an associate of Treasury Secertary James Baker who launched the U.S. strategy for shoring up indebted nations in October, 1985 which included a call for increased adjustment lending by the World Bank. Conable also said that he expected the result of a major study of the Bank's organization to be completed in the next several weeks. He said the decision to seek a reorganization was based, in part, on the fact that the Bank had come under fire from the poorest countries for not doing enough to help and from the richest countries because of inefficiency. the reorganization is considered a major initiative by Conable, and is being closely-watched by the agency's 151 member-countries as an indication of his management style and priorities. "I want to be sure this institution is viewed by those who must support it as soundly constituted so that it will be permitted to grow," Conable said. However, he said "I don't believe there is anything basically wrong with this institution and I don't believe it has to have any redefinition of its purpose." He said, however, that it was apparent that the debt initiative proposed by Baker has given the Bank a central role in dealing with the debt crisis. Conable added that cooperation between the Bank and its sister agency, the International Monetary Fund, was good and that he talked often with IMF Managing Director Michel Camdessus on a variety of issues. On a personal level, Conable said that he not feel a need to put his personal stamp on the Bank noting that "I don't have a particular mission here except to be useful to the institution and to the process of development." He added, "so I don't feel a great calling to personalize the institution." On the development needs of sub-Sahara Africa, Conable said that the Bank was constantly reviewing new ways for assisting the region, noting that half of the recently agreed financing of 12.4 billion dlrs for Bank's International Development Association was earmarked for Africa. Leading industrial nations are expected to consider new forms of debt relief for the very poorest nations, like those in the Sub-Sahara, during next week's meetings.  
TAIWAN TRADE SURPLUS WIDENS IN FIRST QUARTER. Taiwan's trade surplus widened to 4.18 billion U.S. Dlrs in the first quarter of 1987 from 3.05 billion a year ago, the government statistics department said. First quarter exports rose to 11.25 billion U.S. Dlrs from 8.38 billion in the same period in 1986. Imports rose to 7.08 billion from 5.33 billion last year. The March trade surplus was 1.45 billion dlrs compared with 1.32 billion in February and 1.02 billion in March 1986. Exports rose to 4.07 billion U.S. Dlrs from 3.85 billion in February and 2.99 billion in March last year. Imports were 2.61 billion dlrs against 2.53 billion in February and 1.96 billion in March 1986.  
BRITAIN WARNS JAPAN OVER TRADE ROW. British corporate affairs minister Michael Howard told Japan to resolve the row over the U.K. Firm Cable and Wireless Plc's <CAWL.L> shareholding in a new Japanese telecommunications company or face an abrupt deterioration in trade relations. In meetings with both the foreign and telecommunications ministers Howard said he expressed deep concern about the way Tokyo had handled the dispute and about the continuing trade imbalance between the two countries. "I put it to the (post and telecommunications) minister that I was sure he did not want to be responsible for an abrupt deterioration in the trading relations of our countries which would have widespread reverberations elsewhere in the world," Howard told reporters. "He listened very carefully and I have little doubt the message got home," he added. British frustration over the lopsided trade balance - nearly six billion dlrs in Japan's favour last year - has reached boiling point over the telecommunications issue, Howard said. Howard has accused Japan of trying to shut out Cable and Wireless from having a major role in the international telephone market in Japan. "I want a fair crack of the whip for Cable and Wireless as I want a fair crack of the whip for Britain generally in trading relations," Howard said. "We simply aren't prepared to continue to accept the imbalance which has been the position for such a long time." Post and Telecommunications Ministry officials were unable to comment on Howard's meeting with their minister. But Foreign Ministry officials said Foreign Minister Tadashi Kuranari said that British exports to Japan are increasing, but acknowledged the continuing imbalance in trade. Kuranari said he wants everyone in the telecommunications dispute, including Cable and Wireless, to be satisfied. Howard told reporters that Britain was actively considering possible retaliatory measures if it did not get its way on the telecommunications issue. "There are measures which are under consideration if we continue to suffer from the imbalance in our trading relations," he added, but gave no details. He said he had received a reassuring response from the Japanese he has spoken with. "But of course we've had reassuring signs from the Japanese for quite some time," he added. "What I've made plain is we expect to see action." Howard ruled out using powers in Britain's Financial Services bill to retaliate against unfair trade practices. Those powers, which allow London to ban foreign financial firms like banks from Britain, are designed to ensure U.K. Firms equal access to overseas financial markets.  
VOLCKER SAYS EXCHANGE RATE ADJUSTMENT ENOUGH TO NARROW U.S. TRADE DEFICIT.  VOLCKER SAYS EXCHANGE RATE ADJUSTMENT ENOUGH TO NARROW U.S. TRADE DEFICIT  
VOLCKER SAYS REDUCING U.S. BUDGET DEFICIT NEEDED TO IMPROVE TRADE BALANCE.  VOLCKER SAYS REDUCING U.S. BUDGET DEFICIT NEEDED TO IMPROVE TRADE BALANCE  
VOLCKER SAYS MORE STIMULUS ABROAD NEEDED FOR ADJUSTMENTS IN TRADE BALANCES.  VOLCKER SAYS MORE STIMULUS ABROAD NEEDED FOR ADJUSTMENTS IN TRADE BALANCES  
VOLCKER URGES INDUSTRIAL NATIONS TO KEEP TRADE MARKETS OPEN TO FOSTER GROWTH.  VOLCKER URGES INDUSTRIAL NATIONS TO KEEP TRADE MARKETS OPEN TO FOSTER GROWTH  
U.S. CALLS FOR GREATER GATT CHECKS ON TRADE. The United States has appealed for stronger powers for the General Agreement on Tariffs and Trade (GATT) to enforce world trade rules. The call by U.S. Deputy Trade Representative Michael Smith at a special committee meeting into the future of GATT follows a series of bilateral trade rows which have clouded efforts by the 93-nation body to promote fair trade. Today's meeting was part of the Uruguay trade round launched by ministers last September. The round, which covers 13 areas of trade in agriculture, manufactured goods and services will take four years to negotiate. Smith called for boosting GATT's links with financial institutions such as the International Monetary Fund and World Bank. He also urged greater involvement of trade ministers to ensure the success of the Uruguay Round. "The GATT as an institution needs to be strengthened to assure that the GATT plays its proper role in management of the world trading system and the global economy," Smith said. "Rules can and will be ignored if the institution is weak, or perceived as unable to adapt to the changing world economy." He also also urged that member states be accountable to each other for their trade policies. Smith, who flies to Brussels today for talks with European Community (EC) officials, told Reuters the committee wanted to stress GATT's importance and did not discuss specifics. "We are interested in more periodic ministerial involvement...Whether in formal or informal meetings," he said. GATT's ruling council is due to hear a complaint from the 12-nation EC on April 15 about the U.S.-Japanese accord on semiconductors. The EC charges the accord breached GATT trade rules by allowing Tokyo to set minimum prices for Japanese chips sold in third countries and is requesting a GATT dispute panel be set up to review the agreement. President Reagan, who strongly supported the Uruguay trade round to promote freer trade, has said Washington will impose tariffs against Japanese electronic goods. He said Tokyo had not shown willingness to open its markets to U.S. Exports.  
VOLCKER URGES QUICK AID TO DEBTOR NATIONS. Federal Reserve Board Chairman Paul Volcker said that debtor nations have made much progress in laying the groundwork for economic growth, but a solution to world debt difficulties was endangered by inaction on new financing. "There is clearly a danger that adequate financing arrangements are not being negotiated and put in place in a timely way," Volcker told the Senate Banking Committee. The borrowing countries need to be able to proceed with confidence that the necessary funds will be available to them, he said. Brazil has the potential for becoming a leading world economic power, but it is in a difficult position today, Volcker said. He said it will take a concerted effort to regularize Brazil's external payments. "The key prerequisite is clearly in the hands of Brazilian authorities," he said. Both Brazil and its creditors have a strong incentive to work together, Volcker said. Regarding trade imbalances, Volcker said that it was critically important that markets be kept open by the industrial nations. In addition, the United States must reduce its budget deficit and foreign nations need to provide stimulus to their domestic economies, Volcker said. "We need time for those actions and the earlier depreciation to work their effects," he said.  
VOLCKER PUSHES SPENDING CUTS OVER TRADE BILL. Federal Reserve Board Chairman Paul Volcker said reducing the federal budget deficit was a more important goal for Congress than drafting trade legislation. "Reduce the budget deficit," Volcker responded when asked by a member of the Senate Banking Committee about trade legislation priorities. "If you don't deal with the budget deficit, everything else you do is going to be counterproductive," he said.  
JAPAN CUTS CHIP SUPPLY, MAY PRODUCE SHORTAGE. Japan is attempting to cut back semiconductor production to forstall the 300 mln dlrs in U.S. tariffs on Japanese electronic goods set to take effect April 17, industry analysts said. The move is likely to create a sharp price rise and a possible shortage of the key computer components in the next few weeks, the analysts said. "Prices have gone up for memory components, the mainstay of the Japanese semiconductor industry," analyst Drew Peck of Donaldson Lufkin and Jenrette said. But analysts said the price rises have been slight so far, and some questioned whether Japan would be successful in forcing Japanese companies to cut production in the long run. Others, however, were more optimistic, saying evidence was already in hand that Japan has cut back prodution and halted sales to the grey market, the third country brokers that sell chips at below production costs. "We've seen the grey market begin to dry up for D-RAMS, and it has virtually dried up for EPROMS," said Merrill Lynch analyst Thomas Kurlack of the two key memory chips used in computers. "Prices are inching up and lead times on deliveries are stretching," Kurlack added. Industry analysts said Japan's Ministry of International Trade and Industry, or MITI, had requested the cut backs in production to meet the terms of last year's semiconductor accord with the U.S. The Reagan adminsitration recently proposed tariffs on Japanese electronic goods, alleging that Japan had failed to live up to the accord and continued to dump the computer components in the U.S. market. But some analysts said Japan's attempt to mollify the U.S. was a double edged sword, and might be read at a subtle form of trade retaliation for the tariffs proposed by the U.S. As production in Japan is cut, these analysts argue, prices will rise in the U.S. and few American semiconductor manufactures will be able to take up the slack since most long ago exited the market for memory chips. U.S. computer makers that use the chips in their machines will then be pressured. "The Japanese are looking for ways to reduce trade pressures from Washington, but at the same time they're demonstating their muscle," analyst Peck said. The cut backs in Japanese production are expected to benefit U.S. chip makers. "I think this could be a very important factor for U.S. semiconductor manufacturers," industry analyst Elliot Levine of Ladenburg Thalmann Co said. But analyst Peck said, "it will take a few weeks to see whether Japan has genuinely cut production." He said Japanese manufactures were likely to view MITI's request unfavorably because chip capacity was still high and production cut backs would lead to significant write-offs in plant and equipment.  
U.S. URGES SURPLUS NATIONS TO BOOST GROWTH. Leading industrial nations will be reviewing the Paris agreement to stabilize exchange rates, foster increased worldwide growth and reduce trade imbalances but the U.S. thinks the accord has been successful so far, a senior U.S. Treasury official said. "The Paris accord will be reviewed at this meeting. It has been successful and continues to be succesfull," a senior U.S. Treasury official told reporters. In a briefing ahead of this week's semiannual IMF and World Bank meetings, he also said the U.S. was looking to West Germany and Japan to bolster their economic growth. The official said both surplus countries, like West Germany and Japan, and deficit countries, like the U.S., agreed to play a role in bringing about more balanced economic growth. He reaffirmed the U.S. would press ahead with efforts to reduce its budget deficit, resist protectionism and boost U.S. competitiveness. The official also said that he expected trade issues, like the dispute between the U.S. and Japan over microchips, to be included in the discussions. The official made no direct comment on the content or schedule of forthcoming Group of Five and Group of Seven discussions. He said that industrial countries are concerned that the large external imbalances remain a threat to the international monetary system. He added that the meetings will also provide an opportunity to discuss economic policy coordination efforts. The official said indicators would be used to measure policy objectives of industrial countries and their economic projections. They would also be used to assess progress of policy goals. Asked whether the U.S. was proposing a new initiative regarding the indicators, the official said the issue would be reported to the Venice Summit in June. Monetary sources said the U.S. proposal envisages using the indicators to make policy coordination agreements, like the Paris Accord, more binding.  
CANADIANS URGE EXEMPTION FROM U.S. TRADE BILL. A group of Canadian lawmakers from Ontario today asked their U.S. counterparts to exempt Canada from the mandatory trade retaliation provisions in a major trade bill being considered by the U.S. Congress. At a meeting of the Northeast-Midwest Coalition, an organization of U.S. legislators, David Cooke, chairman of the Ontario Parliament's Select Committee on Economic Affairs, said the exemption would help trade relations. The trade legislation to be considered by the full House in late April would require President Reagan to retaliate against foreign unfair trade practices unless the trade actions would harm the U.S. economy. Currently, Reagan can reject trade sanctions on any grounds. Cooke, a member of the Liberal party, told the U.S. congressmen, "I can understand (the trade bill). I think it has to do with concerns you have with the other parts of the world." "I would suggest to you that we are your best friends. You do not have those concerns with Canada and you should sincerely consider exempting our country from that bill," he added. Canada is the United States' largest trading partner, with two-way trade more than 113 billion dlrs in 1985, according to the coalition. But the U.S. ran up a 23 billion dlr deficit in manufactured goods that year compared to a 14 billion dlr surplus in services trade with its neighbour.  
AGENCY REPORTS 39 SHIPS WAITING AT PANAMA CANAL. The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 39 ships waiting to enter the canal early today. Over the next two days it expects -- 2/26  2/27 Due: 27    35 Scheduled to Transit: 35    41 End-Day Backlog: 31    25 Average waiting time tomorrow -- Super Tankers  Regular Vessels North End:  13 hrs      15 hrs South End:   4 hrs      26 hrs  
GULF BARGE FREIGHT RATES UP FURTHER ON CALL. Gulf barge freight rates firmed again on the outlook for steady vessel loadings at the Gulf, increasing the demand for barges to supply those ships, dealers said. No barges traded today on the St Louis Merchants' Exchange call session, versus 29 yesterday. Quotes included - - Delivery this week on the Illinois River (Joliet) 135 pct of tariff bid/140 offered, with next week same river (ex Chicago) quoted the same - both up 2-1/2 percentage points. - Next week Mississippi River (St Louis) 120 pct bid/127-1/2 offered - up five points. - Next week Ohio River (Owensboro/south) 125 pct bid/132-1/2 offered - up 7-1/2 points. - On station Illinois River (south Chicago) 135 pct bid/140 offered - no comparison. - March Illinois (ex Chicago) 132-1/2 pct bid/140 offered - up 2-1/2 points. - March Ohio River bid at yesterday's traded level of 125 pct, offered at 132-1/2. - March lower Mississippi River (Memphis/Cairo) 112-1/2 pct bid/120 offered - no comparison. - May Illinois River (ex Chicago) 100 pct bid/107-1/2 offered - no comparison. - Sept/Nov Lower Mississippi River (Memphis/Cairo) 137-1/2 pct bid/145 offered, with Sept/Dec same section 125 pct bid/135 offered - no comparison.  
CHINA SIGNS WORLD BANK LOAN FOR TIANJIN PORT. China has signed a 130 mln dlr loan agreement with the World Bank to partly finance 12 new berths with an annual capacity of 6.28 mln tonnes at the 20 mln tonne a year capacity Tianjin port, the New China News Agency said. China will provide 370 mln yuan for the project and a Chinese company won a bid against 12 other firms from seven countries to do the foundation work, it said. It said 11 of the new berths will be able to handle ships of more than 10,000 tonnes, three will handle containers and the expansion will enable the port to handle coke, non-metal mineral ores and mining equipment for the first time.  
ROTTERDAM PORT UNION AND EMPLOYERS TO MEET. Dutch port and transport union, FNV, agreed to an employers' request to reconvene abandoned peace talks tonight to try to end strikes that have disrupted Rotterdam's general cargo sector for the past six weeks, a union spokesman said. Talks broke down Thursday when the union walked out after employers tabled their final offer to end the strikes which started January 19 in protest at planned redundancies of 800 from the sector's 4,000 workforce, starting with 350 this year. The employers' invitation to restart the talks comes on the day a deadline set by Minister of Social Affairs Louw de Graaf for a resolution of the dispute expires. De Graaf said if the dispute had not ended by today he would withdraw the 10 mln guilder annual labour subsidy to the sector. No comment was immediately available from the employers' organization.  
VERSATILE TO BUILD POLAR ICE BREAKER. Versatile Corp's shipbuilding subsidiary has a letter of intent to build a 320 mln dlr polar icebreaker for the Canadian coast guard, Transport Minister John Crosbie said. In a Vancouver address, Crosbie said Versatile Pacific Shipyards Inc was the low bidder to build the Arctic Class 8 icebreaker, but the company must meet certain financial and engineering conditions before the contract is awarded. The government also announced it will provide up to 13 mln dlrs in loan insurance to help Versatile prepare for the construction of the vessel. said before the contract can be awarded Versatile "will be required to offer assurances that the shipyard is technically and financially capable of performing the work." Crosibie said Versatile's bid was 100 mln dlrs lower than competing bidders and will generate 1,000 person years of direct employment. Work on the vessel, which Crosbie said would be the most powerful icebreaker in the world, would begin next year and completed in 1992. The government announced plans to build the icebreaker last year following the controversial passage of the U.S. Coast Guard's vessel, the Polar Sea, through the disputed Northwest Passage. The U.S. government did not seek permission for the journey, claiming the area was an international water way. The government said the icebreaker was needed to back up the country's claim of sovereignty in the Arctic.  
CANADIAN SEAFARERS THREATEN STRIKE. Canadian seafarers are almost certain to go on strike this spring in a refusal to meet rollbacks in wages and benefits asked for by their employers, Seafarers' International Union official Roman Gralewicz said. "It's 99.9 percent--I guarantee you a strike," Gralewicz said in an interview. The union represents about 2,300 workers on the Great Lakes and Canada's East and West coasts. Contract talks broke off in January and a conciliator has been appointed to try to help settle the dispute. The current contract expires at the end of March. The seafarers' employers are also asking for a reduction in crew levels, a move which the union said would cost about 400 jobs.  
NEITHER SIDE OPTIMISTIC ON ROTTERDAM PORT ISSUES. Employers and the port union, FNV, are to meet again this afternoon to attempt a settlement of the six-week-old dispute in Rotterdam's general cargo sector, but neither side is optimistic, spokesmen for both sides told Reuters. Little progress was made in last night's three hours of talks, with both sides largely reiterating their positions. "There is still a very large gap between the employers and the FNV, and I can't say that we expect to reach any agreement. But at least we are still talking," a union spokesman said. Employers organization chairman, Jacques Schoufour, accused the FNV of intransigence in refusing to alter its stance at all over the past two months. "The FNV is not serious about our discussions and I am really not optimistic about it changing its point of view at all." "If we find this afternoon that the FNV still refuses to accept the necessary redundancies in the general cargo sector, then we will break off the talks and the redundancies may begin later this month," Schoufour said. The series of strikes, which employers say has cost them more than seven mln guilders in lost import business in the past six weeks, began on January 19 in protest at plans for 800 redundancies from the sector's 4,000 workforce starting with 350 this year. Late last month Social Affairs minister Louw de Graaf said unless the dispute was settled by yesterday he would withdraw the sector's 10 mln guilder annual labour subsidy. Both sides wrote to the minister yesterday setting out their cases, but Schoufour said he did not expect to hear from him before Wednesday at the earliest.  
MCLEAN INDUSTRIES <MII> UNIT TRANSERS SERVICE. McLean Industries Inc said its shipping subsidiary, United States Lines Inc, reached an agreement in principle to transfer its South American service to American Transport Lines Inc, a subsidiary of <Crowley Maritime Corp>. Under the terms of the agreement, United States Lines will lease five vessels to American Transport for 15 months with an option to extend the period up to 10 years, the company said. In return, U.S. Lines will receive a fixed payment and a percentage of revenues for at least three years and possibly as long as American Transport utilizes its vessels and conducts trade in South America, the company said. The companies will consummate the transactions as soon as the required approvals are obtained, McLean said.  
KENYA SIGNS PACT TO ESTABLISH OWN SHIPPING LINE. Kenya has signed an agreement with British and German interests to establish a shipping line that will handle 40 pct of the country's external trade, sources close to the deal said. The state-owned Kenya Ports Authority, KPA, signed an agreement with the Hamburg-based shipping line Unimar Seetransport to establish the Kenya National Shipping line, with an initial capital of 100 mln shillings, sources said. KPA will hold 70 pct of the shares in the new company. The line will initially charter vessels to operate services between Mombasa and the main ports of industrial Europe, but may eventually build or buy its own ships. The sources said it would aim to carry a large part of Kenya's coffee and tea exports and oil and fertiliser imports.  
TAIWAN SHIPBUILDER LOOKS FOR JAPANESE VENTURES. Taiwan's state-owned China Shipbuilding Corp (CSBC) plans to seek joint production agreements with Japan and further diversify into ship repairing to try to trim its debts, chairman Louis Lo said. He told Reuters in an interview that CSBC's first joint production venture, to build two hulls for <Onomichi Dockyard Co Ltd>, was a success. Talks on similar projects have been held with other Japanese firms, including Mitsubishi Heavy Industries Co Ltd <MITH.T> and Ishikawajima-Harima Heavy Industries Co Ltd <JIMA.T>, he said. Lo said CSBC delivered the hulls of two 2,200-TEU (twenty foot equivalent unit) container ships this year to Onomichi, which would complete production. "We expect the successful cooperation between us and Onomichi will pave the way for further cooperation with other Japanese shipbuilders in the future," Lo said. He said Japanese firms would gain from the lower cost of shipbuilding in Taiwan while CSBC would benefit from Japanese technology and marketing. This would pose a challenge to competitors in Europe and South Korea. Lo said CSBC has made losses of about 100 mln U.S. Dlrs since beginning operations in 1975. Its total debt now stands at about 500 mln dlrs, with annual interest payments of nearly three mln dlrs. But he said the company, which is Taiwan's largest shipbuilder, still has full government support and had begun diversifying into ship repairing and manufacture of pipes and other machinery. "We hope we can survive and prosper through diversification," he said. Lo said income from ship repairing almost doubled to 20 mln U.S. Dlrs in the year ended June 1986 compared with the previous financial year. He estimated income would rise to more than 25 mln dlrs in 1986/87. CSBC has orders to build 10 ships totalling 460,000 dead weight tons (dwt) this financial year, compared with 11 ships of 462,000 dwt in 1985/86, he said. Lo said the prospects for shipbuilding were gloomy at least until 1991 due to overtonnage, but the outlook for ship repairing was bright.  
BLIZZARD CLOSES BOSPHORUS. Blizzard conditions halted shipping through the Bosphorus waterway and piled snow up to 70 cms deep in central Istanbul, paralysing the city for the second day running. Snow whipped by 48 kph winds continued to fall on Istanbul and northwest Anatolia after 36 hours and weather reports predicted no relief for another two days. Port officials said at least six large vessels in the Black Sea and 13 in the Sea of Marmara were waiting for conditions to improve. Istanbul's Ataturk international airport has been closed since yesterday.  
ROTTERDAM PORT SUBSIDY TO END JULY 1 - MINISTER. Dutch Social Affairs Minister Louw de Graaf announced he is withdrawing the annual 10 mln guilder labour subsidy for Rotterdam's strike-hit general cargo sector as from July 1. Late last month de Graaf said that if the dispute was not settled by Monday this week he would withdraw the subsidy. The chairman of the port employers' organization, SVZ, Jacques Schoufour, said he was unhappy with the decision and added there was now no alternative to proceeding with redundancy plans. The series of strikes in the sector started on January 19 in protest at employers' plans to make 800 redundancies from the 4,000-strong workforce by 1990 starting with 350 this year. Meanwhile, the port and transport union, FNV, attacked loss figures given for the port for this year. The figures, issued by accountants on behalf of the SVZ, put total losses for last year at 34 mln guilders and in 1985 at 37 mln. Earlier, the employers had put the figure at around 30 mln. The FNV said the actual losses were nearer 17 to 20 mln and said the employers had inflated the figures as part of their plan to restructure completely the port's general cargo sector.  
STRIKING BRAZILIAN SEAMEN HOLD PAY TALKS. Striking Brazilian seamen, who say they have made idle 158 ships and halted Brazilian exports, today held pay talks in Rio de Janeiro with Labour Minister Almir Pazzianotto, union officials said. Jorge Luis Leao Franco, a senior official of the National Merchant Marine Union, told Reuters he was optimistic the talks would lead to an end of the stoppage, which began last Friday. Brazil's 40,000 seamen are seeking a pay rise of 275 pct. The union official said the strike had halted a total of 158 vessels, including 50 in Brazil's main port, Santos, and about 50 more in Rio de Janeiro. Abroad, six ships lay idle, in the Netherlands, Spain, Venezuela, France and South Africa, he said. Economic analysts said the strike was of serious concern to the government, which has already had to suspend interest payments on part of Brazil's foreign debt following a drastic deterioration in the country's trade balance. The head of the National Merchant Marine Authority, Murilo Rubens Habbema, was quoted in today's Gazeta Mercantil newspaper as saying that if the strike continued foreign ships could be authorized to transport Brazilian exports. "Brazil is living through a crisis at the moment, and it is not conceivable that exports be hit," he said. "But even using foreign ships we must not forget that we are going to lose foreign exchange paying freight charges abroad, and all this through the fault of the seamen," Rubens Habbema said. A spokesman for the port of Santos, which has been the scene of labour unrest and congestion in recent months, said movement of ships out of the port was running at about half its normal level of 12 ships a day. He said a total of 76 ships were either waiting at anchor on moored in the harbour.  
TALKS FAIL TO END BRAZILIAN SEAMEN'S STRIKE. Pay talks aimed at ending a week-old national seamen's strike collapsed today and the strike will continue, a union official said. The walkout by Brazil's 40,000 seamen has idled 160 ships in various ports, Jorge Luis Leao Franco, a senior official of the National Merchant Marine Union, told Reuters. The strikers, who are seeking a 275 pct pay increase, have rejected offers of a 100 pct raise from the state oil company Petrobras and an 80 pct increase from the National Union of Maritime Navigation Companies (Syndarma). Leao Franco said eight hours of talks in Rio de Janeiro with Labor Minister Almir Pazzianotto ended today without resolving the dispute. He said six ships were idle abroad -- in the Netherlands, Spain, Venezuela, France and South Africa. Economic analysts said the strike was of major concern to the government, which has suspended interest payments on part of Brazil's foreign debt following a drastic deterioration in the country's trade balance. The head of the National Merchant Marine Authority, Murilo Rubens Habbema, was quoted today as saying that if the strike continued foreign ships could be authorized to transport Brazilian exports. "Brazil is living through a crisis at the moment and it is not conceivable that exports be hit," he told the Gazeta Mercantil newspaper.  
SOME SHIPPING RESTRICTIONS REMAIN ON RHINE. Limited shipping restrictions due to high water remain in force on parts of the West German stretch of the Rhine river between the Dutch border and the city of Mainz but most are expected to be lifted this weekend. water authority officials said The restrictions, caused by high water levels, include speed limits and directives to keep to the middle of the river to prevent damage to the river banks. The high water was expected to recede within two days to below levels at which the restrictions come into force. Traffic was halted briefly late Tuesday night, Wednesday and parts of Thursday on stretches of the Rhine between Bonn and Koblenz but the shipping bans were lifted, the officials said. Shipping is now permitted on all parts of the West German section of the Rhine, with restrictions in some areas.  
MIDMISSISSIPPI RIVER OPENS TODAY FOR SEASON. The Mississippi River is now open for barge traffic up to the Twin Cities in Minnesota after repairs were completed and the first barges moved upstream through Lock and Dam 20 near Quincy, Ill at 0600 CST today, an Army Corps of Engineers spokesman said. About 14 to 15 inches of ice were reported between locks three and four on the upper Mississippi River, but other sections were generally free of ice, the spokesman said. Midwestern weather has been so mild that barges probably could have kept loading at Mid-Mississippi River terminals through the winter, if Lock and Dam 20 had not been scheduled for repairs, he said. The Peoria and La Grange locks on the Illinois River are still scheduled to close July 13, for two months of repairs.  
CHANNEL FERRY REPORTED SINKING OFF BELGIUM. The channel ferry Herald of Free Enterprise from the British Townsend Thorensen company was sinking off the Belgian coast tonight with 463 people on board, the Dutch newsagency ANP reported today. An unspecified number of people had fallen into the water, it said, quoting the pilot organisation in this south-western Dutch port city near the Belgian border. It said the vessel had capsized after a collision but gave no more details. Dan Kaakebeen a spokesman for the Dutch salvage firm Smit International told Reuters by telephone from Rotterdam that the vessel was just off the Belgian port of Zeebrugge with 463 passengers and crew when the accident occurred at 1850 GMT. Kaakebeen said the firm had one vessel at the scene and another on its way with divers on board. A spokesman at the port authority of nearby Vlissingen said attempts were being made to pull the vessel into shallow waters. Weather conditions were good with no fog or wind, and there were many other vessels in the area.  
TWO HUNDRED PEOPLE RESCUED FROM SINKING FERRY. About 200 people were rescued, some badly hurt, from a sinking cross Channel ferry carrying approximately 540 people off the Belgian port of Zeebrugge, a port control spokesman said. The spokesman, contacted by telephone, said only one third of car ferry, the Herald of Free Enterprise owned by the British company Townsend Thoresen, remained above water. Divers have been sent down to try to rescue passengers believed trapped in the ferry, which was on its way from Zeebrugge to the English port of Dover and capsized just off the pier, he added  
26 REPORTED DEAD IN FERRY DISASTER. At least 26 people died when a car ferry struck a pier as it left Belgium for Britain, a nurse who took part in the rescue operation said. Jan Van Moerbeke, a male nurse, said on coming off the Herald of Free Enterprise that he had found six people on top of the vessel who were dead. There were at least another 20 dead inside the boat, he added. The governor of West Flanders province said 240 people were still unaccounted for.  
TWO HUNDRED FEARED DEAD IN FERRY DISASTER. About 200 people are feared dead after a British cross-channel ferry rolled on its side off the Belgian coast last night -- but almost 350 passengers were plucked to safety from the ice-cold sea. Belgian Transport Minister Herman de Croo told reporters: "I fear the dead could be in hundreds, perhaps 200. Given the state of the water, I fear there is no hope." Townsend Thorensen, owners of the 7,951 tonne Herald of Free Enterprise, said the ferry was carrying 543 people and that 345 had been rescued. All but one were British.  
FERRY DISASTER MAY RANK AMONG WORST TRAGEDIES. Fading hope for passengers trapped aboard a partially-sunk Channel ferry raised fears the accident could rank among this centuries' worst peacetime shipping tragedies. Belgian Transport Minister Herman de Croo said there was no hope of rescuing any of about 220 passengers trapped in the Herald of Free Enterprise after it capsized off the Belgian coast last night. If confirmed, the toll would make the incident the world's worst since a Soviet liner, the Admiral Nakhimov, collided with a freighter in the Black Sea last September and sank with the loss of nearly 400 lives. A further 856 people were rescued. The world's deadliest single peacetime incident at sea was the sinking in 1912 of the Titanic with a loss of 1,500 lives. The second biggest loss of life in peacetime was in 1914 when 1,014 people drowned when the liner Empress of Ireland collided with a freighter on the St Lawrence river in Canada. The world's worst maritime disaster was in wartime that took 7,700 lives when the German liner Wilhelm Gustloff was torpedoed by a Soviet submarine in January 30, 1945. In 1985, more than 200 were feared dead after two ferries sank near Dhaka, 174 drowned when a ferry capsized in China and 147 died when a launch sank off the Malaysian state of Sabah.  
ALMOST 200 DEAD IN FERRY DISASTER. There are no more survivors from a British cross-Channel ferry disaster off the Belgian coast and almost 200 people seem certain to have perished, a senior Belgian official said. Jacques Thas, in charge of rescue for the Herald of Free Enterprise, said his men had searched all of the ship except some inaccessible cabins and the control room. "I am afraid there are no more survivors," he said. Thas said 32 of the 543 passsengers and crew were confirmed dead and 160 were missing, bringing the total of dead or presumed dead to 192.  
EXPERTS HAD EXPRESSED FEARS OVER RO-RO SAFETY. As a British government investigation got under way into the sinking of the car ferry Herald of Free Enterprise with heavy loss of life, experts said doubts had already been expressed about the roll-on roll-off type of ship. Shipping minister Lord Brabazon said a preliminary investigation had started into why the 7,951 tonne ferry capsized and sank in little over a minute as it manoeuvred to leave Zeebrugge on a routine four hour crossing to Dover. Initial reports spoke of water flooding the car decks through the bow doors. But a spokesman for the owners, Townsend Thoresen, said it was also possible the ferry had been holed. Townsend Thoresen operate two other ships identical to the Herald of Free Enterprise, but Brabazon said it was not planned to pull them out of service at present. "Our investigator is there already. We shall have to wait and see. But it is too early to say what happened," he told BBC radio. As the work of retrieving bodies from the half-submerged hulk continued, maritime safety experts in London said doubts had already been expressed about the design of so-called "RoRo" ferries such as the Herald of Free Enterprise. In 1980 the Inter-Governmental International Maritime Consultative Committee issued a report saying more roll-on roll-off vessels were lost in accidents than ships with deck areas divided by bulkheads. Townsend Thoresen say the ship, built at the West German yard of Bremerhaven in 1980, was built to the highest safety standards. But salvage expert William Cooper said passengers would have had problems getting off this type of ship because of its design. Former Townsend Thoresen navigating officer Clive Langley said the RoRo type of vessels were similar in some respects to a barge. "As any sailor knows it only takes two or three inches out of line and you can turn a barge over. An ordinary ship is compartmentalised and you have more stability," he said. Cooper said cross-Channel ferries were normally perfectly stable but had huge wide deck areas above the water level. "If you do get water into that area then you can get very severe effects on the stability of the ship," he added.  
BRAZIL SEAMEN CONTINUE STRIKE AFTER COURT DECISION. Hundreds of marines were on alert at 11 key Brazilian ports after 40,000 seamen decided to remain on indefinite strike, even after the Higher Labour Court yesterday ruled it illegal, union leaders said. The halt, the first national strike by seamen in 25 years, started on February 27, and union leaders said they would not return to work unless they got a 275 pct pay rise. Shipowners have offered a 100 per cent raise, which the seamen rejected. "We have nothing to lose. If they want to lay off the workers, fine, but we are determined to carry on with our protest until the end," a union leader said. He said they had decided in a meeting that if the marines take over the ships, the seamen would abandon the vessels and let the marines handle the situation by themselves. A spokesman for the Rio de Janeiro Port said the order to send marines to take over the ports was given by Navy Minister Henrique Saboya on grounds that ports are areas of national security. But he said there were no incidents. The strike has cut exports and imports and made an estimated 160 ships idle. Petrol station owners in four states also continued their shutdown and there were fears that the combination of the two stoppages could lead to a serious fuel shortage.  
BRAZIL SEAMEN CONTINUE STRIKE DESPITE COURT. Hundreds of marines were on alert at 11 key Brazilian ports after 40,000 seamen decided to remain on indefinite strike, even after the Higher Labour Court Saturday ruled it illegal, union leaders said. The halt, the first national strike by seamen in 25 years, started on February 27, and union leaders said they would not return to work unless they got a 275 pct pay rise. Shipowners have offered a 100 per cent raise, which the seamen rejected. "We have nothing to lose. If they want to lay off the workers, fine, but we are determined to carry on with our protest until the end," a union leader said. more He said they had decided in a meeting that if the marines take over the ships, the seamen would abandon the vessels and let the marines handle the situation by themselves. A spokesman for the Rio de Janeiro Port said the order to send marines to take over the ports was given by Navy Minister Henrique Saboya on grounds that ports are areas of national security. But he said there were no incidents. The strike has cut exports and imports and made an estimated 160 ships idle. Petrol station owners in four states also continued their shutdown and there were fears that the combination of the two stoppages could lead to a serious fuel shortage.  
HUTCHISON UNIT BUYS CONTAINER CRANES FROM JAPAN. Container port operator, <Hong Kong International Terminals Ltd>, a 89 pct held unit of Hutchison Whampoa Ltd <HWHH.HK>, said it has placed a 164 mln H.K. Dlr order for seven quayside container cranes of 800 tons each with Japan's Mitsui Engineering and Shipbuilding Co Ltd <MSET.T> for May 1988 to August 1989 delivery. Hong Kong International Terminals operates 32 cranes.  
BOSPHORUS SHIPPING MOVES, ISTANBUL OFFICES CLOSE. Istanbul remained at a virtual standstill today under snow up to a meter deep but shipping was moving through the narrow Bosphorus waterway linking the Sea of Marmara and the Black Sea, officials said. The authorities ordered government offices closed until Wednesday. Many banks, businesses and schools stayed shut as workers struggled to keep main roads and supply lines open in this city of 6.5 mln people. The second blizzard to hit Istanbul in a week stopped yesterday afternoon and the international airport reopened today after a two-day closure. It was also shut earlier last week.  
GALE FORCE WINDS BUFFET GREAT LAKES. The National Weather Service said warnings of gale force winds remained in effect over lakes Erie, Huron and Michigan. Also, warnings have been posted for large waves and beach erosion along the shores of the Lakes. Winds gusting to 45 mph caused four to six foot waves along the western and southern shores of Lake Michigan during the morning. Advisories for low wind chill temperatures have also been posted across portions of upper Michigan and northern lower Michigan. Early morning gusty winds brought the wind chill to 15 and 25 degrees below zero. Freezing rain was scattered over central Colorado by mid morning, also over central Kansas and northeast Illinois. Snow reached from south central Montana across Wyoming, western Nebraska and western Kansas. Snow also extended across northern Wisconsin, upper Michigan and northern lower Michigan. Rain reached along the northern Pacific Coast, across northwest Utah, Maryland, Deleware, Virginia, the Carolinas, Georgia and northern Alabama.  
FERRY DISASTER CLAIMS COULD TOP 30 MLN STG. U.K. Insurers could face more than 30 mln stg of insurance claims following the Zeebrugge ferry disaster, a spokesman for Lloyds of London said. It could take weeks before the extent of the compensation claims for passengers, crew and cargo was known and also before it was known how much, if any, of the ship could be salvaged, said David Larner of Lloyds. The hull and machinery of the Herald of Free Enterprise were valued at 25 mln stg and were insured by Townsend Thoresen's parent company Peninsular and Oriental Steam Navigation Co Plc <PORL.L>. The vessel was in turn reinsured in the London market with Lloyds and various other companies, Larner said. Passengers, crew and cargo were insured by the Standard Steamship Protection and Indemnity Association, one of several shipowners' mutual insurance funds worldwide. These were also underwritten by Lloyds and other companies. Larner said claims from passengers could be expected to total at least five mln stg, given the number of deaths and the normal level of liability set by the Athens Convention of 1974 of between 30,000 stg and 50,000 in case of death. Shipping sources said, however, that these claims could soar if a court found there was negligence or design faults involved. Larner said estimates of compensation claims "were pure guess work" at this time. But if the ship could not be salvaged, the claims would total at least 30 mln stg. Shares of insurances on the London stock exchange fell across the board in a generally weak market. General Accident fell 21p to 936, Royal Insurance dropped 18p to 966 and Prudential fell 9p to 888. P and O shares stood at a late 616, 27p lower on the day.  
LONDON GRAIN FREIGHTS. wheat Ria Luna 20,000 mt Norrkoping and Djuron/EC Mexico 12.50 dlrs option loading Uddevalla at 50 cents less 4,000/1,500 16-23/3 Continental. Reference New York Grain Freights 2 of March 6, brokers say the charterer of the Saturn from US Gulf to Japan is reported to be Nordstrom and Thulin, while the Antigone is reported to have been arranged from Tilbury to the Black Sea by Soviet charterers.  
BERMUDA STAR LINE <BSL> TO MAKE ACQUISITION. Bermuda Star Line Inc said it has agreed in principle to acquire 815-passenger SS Liberte from Barnstead Shipping Ltd for use in its New York/Montreal "Northeast Passages" cruises, starting this summer. The company said it is working to conclude a lease financing or other financing for the purchase of the 23,500 ton vessel, which is to be delivered in early April and renamed Canada Star. Terms were not disclosed.  
EUROPE SHIPPING EXPORTS TO S AFRICA OFF 40 PCT. The volume of European exports to South Africa carried by container line vessels has declined 40 pct in the last two years, British shipping executive Antony Butterwick said. Butterwick told reporters that despite the drop and low freight rates, the shipping conference he heads will increase the frequency of sailings to South Africa as a "very strong act of faith and confidence" in the country's future. He is chairman of the Europe South and South-East African Conference Lines and joint managing director of P and O Containers Ltd. A statement issued by the conference here said frequency of Southern Africa/Europe container service sailings is being increased from nine to seven days. "This is the most positive development on the shipping front between South Africa and its main trading partners in Europe for more than four years, when the service last operated weekly," it said.  
SEAMAN'S STRIKE CONTINUES, MARINES UNLOAD SHIPS. Brazilian marines were today working on the unloading of ships at the local port as a national strike by 40,000 seamen entered its 10th day without signs of an agreement. The halt, the first national strike by seamen in 25 years, started on February 27, and union leaders said they would not return to work unless they received a 275 pct pay rise. Shipowners have offered a 100 pct raise, which the seamen rejected. "Television reported that the port was operating at full speed, but that's not true," a striking seaman told Reuters. "The marines are doing their best, but they don't have the manpower nor the experience to control the situation in such a quick period," he said. Port officials said the national halt had already caused losses estimated at 1.5 mln dlrs. Despite the presence of marines, there were no reports of incidents.  
UNION, SHIPPERS AGREE TO CUT N.Y. PORT COSTS. The New York Shipping Association and International Longshoremen's Association said they agreed to cut cargo assessments at the Port of New York and New Jersey by more than 50 pct on some labor intensive cargos. The charges on cargo handled by union workers will be reduced to 2.85 dlrs a ton from 5.85 dlrs a ton, effective April one, according to the agreement between the union and shippers. The assessments are used to fund workers' benefits. "What were doing is lowering the price to get more bulk cargo flowing through here," a spokesman for the New York Shipping Association said.    
CSX <CSX> UNIT SETS IMPROVED SHIPPING SERVICE. CSX Corp's Sea-Land Corp unit said it will offer improved containership services between Puerto Rico and the East Coast and Gulf Coast of the United States, beginning March 16. The carrier said it will provide shorter door-to-door transit times, more convenient cargo availability and better rail connections for traffic moving between Puerto Rico and North America.  
SEARCH FOR BRITISH FERRY'S TOXIC CARGO CONTINUES. The search continued for a cargo of poisonous chemical substances loaded on the Herald of Free Enterprise Ferry which capsized in Zeebrugge harbour Friday. A total of 72 drums of various toxic materials which were loaded on trucks in the ship's hold have been recovered, but Belgian authorities warned it was essential to recover a further 61 containers of a cyanide-based solution. A net has been thrown over the gaping loading doors at the front of the ship to prevent any more drums floating out. Salvage workers have moved cranes into place alongside the wreck of the 7,951 ton roll-on, roll-off ferry which now lies partly submerged on a sandbank outside the harbour. The ferry's owner is <European Ferries Plc>, majority owned by Peninsular and Oriental Steam Navigation Co Plc <PORL.L>. The operation to right the vessel began yesterday after divers abandoned their search for more bodies. Experts said it could take months to refloat the ship and free the 80 bodies estimated to be trapped amid debris. "The problem is that in these waters you can normally expect one working day out of four," said Daan Kaakebeen of Dutch Salvage experts Smit Tak International of Rotterdam. He estimated the job itself would require 35 working days. Using reinforced cables, salvage experts intend to raise the ship and set it down into a trench dug alongside. Salvage work could pinpoint the exact cause of the loss of the ferry, one of three sister vessels plying cross-Channel routes from England to continental Europe. Suspicion at present is focused on the ferry's main vehicle loading doors, set close to water level. In London, Transport Secretary John Moore told parliament yesterday that the ship keeled over after water gushed in through the bow doors. He said a major government inquiry into the disaster will be held, all similar ferries sailing from Britain will be inspected and owners will be asked to fit lights to give warning if bow doors are not properly closed. Experts carrying out tank and computer tests to determine how the accident occurred will focus attention on the ship's doors, its ballast system and crew procedures, he added. Two other investigations into the disaster have also begun, one Belgian and one by the ferry's owners.  
WORK AT CHITTAGONG PORT HALTED BY STRIKE. Cargo handling remains halted at Bangladesh's Chittagong port since nearly 7,000 workers walked out on Monday following a pay dispute, the Port Workers Association said today. Fourteen ships are stranded at the port. Port officials said they would meet Association leaders today to try to resolve the dispute.  
DUTCH PORT UNION TO MEET PARLIAMENTARIANS TODAY. Dutch port and transport union, FNV, is presenting its case against 800 planned redundancies in Rotterdam's general cargo sector to parliament's standing committee on social affairs today, a union spokesman said. With 285 of the 4,000-strong workforce on strike, the union will tell the committee the government has a duty to help solve the dispute that has been disrupting the general cargo sector for more than seven weeks, the spokesman added. The union will also take its case against the redundancies, 350 of them planned for this year, to a court in Amsterdam tomorrow, he added.  
DUTCH PARLIAMENT OFFERS LITTLE HELP IN PORT ROW. Dutch members of parliament said they could do little to help resolve the dispute over redundancies in Rotterdam port's general cargo sector and urged the union and employers to sort out their differences themselves. Both sides gave evidence to the all-party standing committee on Social Affairs today, but committee members said they saw little chance of parliamentary intervention. The dispute began on January 19 in protest at employers' plans for 800 redundancies from the 4,000-strong workforce, starting with 350 this year. The port and transport union, FNV, is to challenge the redundancies in an Amsterdam court tomorrow.  
AMERICAN PRESIDENT <APS> TO LEASE MORE SHIPS. American President Cos Ltd said its American President Lines shipping subsidiary  obtained final approval from U.S. and Japanese authorities to lease four new ships from Lykes Bros Co. The move will will enable it to boost service in the Pacific by 15 pct in 1987, American President said. The company said it will lease the ships for three years and hold two additional three-year options. It said American President Lines is currently operating at capacity in the Pacific and the new ships will arrive in time for the normal demand surge of the spring and summer seasons.  
SENATOR LUGAR CALLS FOR CARGO PREFERENCE REPEAL. The senior Republican on the U.S. Senate Agriculture Committee, Richard Lugar of Indiana, called for repeal of the cargo preference law that aids the American shipping industry but which he said hurts farmers. "Cargo preference is a costly special interest operated at the expense of American farmers and dockworkers," Lugar said in signing on as a co-sponsor or cargo preference repeal legislation. The law requires shipment of U.S. goods on American ships rather than foreign vessels which are less costly.  
BANGLADESH PORT WORKERS END STRIKE. Cargo handling resumed at Bangladesh's Chittagong port today after 7,000 workers ended their three day walk-out triggered by a pay dispute, port officials said. Loading and unloading of 14 ships stranded by the strike started this morning and will be completed as quickly as possible, they said. The strikers returned to work after an agreement was reached last night between port authorities and the Port Workers Association, they said without giving details.  
STRIKING BRAZIL SEAMEN THREATEN MASS RESIGNATION. Striking seamen said they would offer their collective resignation rather than end their 13-day-old national strike on management's terms. The seamen said they were spurred to their decision after marines occupied the ship Docemarte in Santos harbour Tuesday night. They said seamen on the vessel were being forced to work under duress. President Jose Sarney's government despatched troops to Brazil's ports and oil installations on Tuesday. Seamen in Santos, Brazil's main port, are in defiant mood. One of their leaders, Orlando dos Santos, told Reuters that most of the 1,100 seamen in the port offered their resignations on Wednesday. The national strike headquarters in Rio de Janeiro said seamen were offering to resign in all the country's main ports. The strike by 40,000 seamen comes as Brazil faces a serious debt crisis brought on by a sharp deterioration in its trade balance. The country needs all the foreign exchange it can get, and shipowners have been quick to denounce seamen for the harm the strike is doing to exports. An advertisement placed in the newspapers by the Shipowners Association read, "The seamen's strike is illegal, irrational and unpatriotic." The seamen respond that they cannot live on their present salaries. According to officical pay lists available in the union's office, the basic pay for ordinary seamen is 1,977 cruzados a month, while various allowances can bring their total pay up to 4,000 cruzados a month. At the other end of the scale, captains earn 7,993 cruzados a month basic pay, which is brought up to 15,229 cruzados with allowances. "Brazil's seamen are the second worst paid in the world, after Ghana's," dos Santos said. He said the seamen had not received a pay increase since February 1986, and prices have doubled since then with the collapse of the government's Cruzado Plan price freeze. Talks in Rio de Janeiro Wednesday involving Labour Minister Almir Pazzionotto, seamen and employers failed to resolve the dispute. The seamen are demanding pay raises of about 200 pct but have been offered less than half that.  
TURKISH SHIP HEADED FOR FLORIDA AFTER EXPLOSION. The Turkish ore/bulk/oil vessel Obo Engin, 78,078 tonnes dwt, had an explosion in its boiler yesterday, Lloyds shipping Intelligence Service reported. The vessel has retained some power and yesterday evening was in position Lat. 25 57 N., Long. 75 06 W. It is diverting to Jacksonville, Florida, with its cargo of 58,000 tons of coal. The vessel was bound for Iskenderun, Turkey from Lake Charles.  
ST LAWRENCE SEAWAY TO OPEN ON SCHEDULE. The St Lawrence Seaway and the Welland Canal linking Lakes Erie and Ontario were expected to open as scheduled on March 31 and April 1, respectively, a St Lawrence Seaway official said. The entire Seaway is already free of ice due to the mild Winter and could be open for navigation today, "but there doesn't seem to be enough demand from shipping companies to warrant an early opening," the Canadian official said. Repairs are continuing at a stepped up pace on the Welland Canal and should be completed by the April 1 start-up date, she added.  
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS. Two small shipping companies have reached a pay deal with striking seamen, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.  
JAPAN SHIPBUILDERS SEEK CARTEL TO RESTRICT OUTPUT. Japanese shipbuilders have applied to the state's Fair Trade Commission to form a cartel to restrict tonnage built to about half of total capacity for the year starting April 1, officials of the Shipbuilders Association of Japan said. Under the plan, 33 yards capable of building ships of more than 10,000 gross tons will curtail operations to three mln compensated gross registered tonnes (CGRT) a year against capacity of about six mln CGRT. The Transport Ministry estimates new orders at 3.3 mln CGRT in the year to March 1988 and 3.1 mln the following year. The industry has curtailed production due to oversupply nearly every year since 1977/78, under cartel or Transport Ministry guidelines. The latest guidelines call for a ceiling of four mln CGRT in the year to March 31. The cartels, self-imposed and self-regulated, are not legally binding, but industry finds it in its own interest to stick to them. The slowdown in orders has been caused by the strong yen and a protracted worldwide shipbuilding slump.  
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS. Two small shipping companies have reached a pay deal with striking seamen, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.  
COURT PUTS INJUNCTION ON DUTCH PORT REDUNDANCIES. Employers in Rotterdam port's strike-hit general cargo sector have been served with an injunction until May 7 preventing them from continuing with plans for 350 redundancies this year, an employers' organisation spokesman said. An Amsterdam court yesterday ruled there had been a legal fault in the employers' redundancy procedure. The employers' spokesman said they were likely to restart the redundancy procedure afresh next week in an attempt to pre-empt the May 7 final court ruling. Port and transport union representative Paul Rosenmuller described the court ruling as a victory for the union, but added there was still a long way to go before the dispute that has hit the general cargo sector for the past eight weeks was resolved. Rosenmuller said there would be a meeting of the sector's 4,000 workers this afternoon to decide on further action in the campaign of lightning strikes that began on January 19 in protest at planned redundancies of 800, starting with 350 this year. The employers said there were no immediate plans for meetings with the union either on the proposed redundancies or on a new work practice agreement in the sector. Meanwhile, discussions on a new work agreement in the port's grain sector, due to resume next week, are stalemated, although agreement could be close in the coal and ore sector, the employers' spokesman added.  
STRIKE TO CLOSE NEW ZEALAND PORTS ON MONDAY. Harbour workers said they will strike for 24 hours on Monday, effectively closing all New Zealand's ports. The strike is over deadlocked wage negotiations. A Harbour Employees Workers' Union spokesman told reporters there will be no ship movements in and out of ports from midnight on Sunday (1200 hrs GMT March 15). There will be no loading or unloading involving harbour board workers and the Cook Strait ferries, which provide a vital link between New Zealand's North and South Islands, will not run, he added.  
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS. Two small shipping companies reached a pay deal with striking seamen late yesterday, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay raise offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.  
DUTCH PORT UNION CALLS OFF GENERAL CARGO STRIKES. Dutch port and transport union, FNV, has called off the strikes against planned redundancies that have hit Rotterdam port's general cargo sector for the past eight weeks, strike leader Paul Rosenmuller told a mass meeting. The decision followed yesterday's ruling by an Amsterdam court preventing the sector's employers continuing with current plans for 350 redundancies this year until the court sits again on May 7, Rosenmuller told a meeting of the general cargo sector's 4,000 workers today. The court ruled the employers had made a mistake in the complicated legal procedure for obtaining official permission for the redundancies, and therefore could not proceed. "There is no need to continue the strikes for the moment now the immediate pressure of redundancies has been lifted," Rosenmuller said. But he added that the strikes, which began on January 19 in protest against plans for 800 redundancies by 1990, could resume at any time before May 7 if the employers made any moves to re-apply for permission for the redundancies. SVZ labour relations manager Gerrard Zeebregts said they would be meeting their lawyers today with a view to re-applying for this permission next week in the hope of gaining approval for the redundancies within a month.  
13-MAR-1987. 13-MAR-1987 
SINGAPORE TO SPEND 1.2 BILLION DLRS ON PORTS. The Port of Singapore Authority (PSA) will spend 1.2 billion dlrs to develop port facilities and cargo-handling equipment over the next five years, Communications Minister Yeo Ning Hong told parliament. Yeo said the improvements were needed to cope with an expected growth of ship tonnage and cargo handled by the port, but gave no further details. The PSA handled 529 mln gross-registered tonnes of cargo in 1985, according to the latest available statistics from the port authority.  
IRAN HAS ANTI-SHIP MISSILES NEAR GULF - PAPER. Iran has deployed about six large missiles near the Strait of Hormuz which increase the threat to shipping in the Gulf, the New York Times said. The paper quoted U.S. Intelligence sources as saying the missiles appeared to be of a Chinese design known as HY-2 which is based on the Soviet SSN2 or Styx missile. Styx missiles have a range of up to 50 miles. It said the missiles had been deployed at two sites and quoted a naval analyst as saying they could be used to sink a supertanker and block the Strait of Hormuz. Missiles now used by Iran had only a fraction of the explosive power of the Styx and could sink a supertanker only with a lucky hit, the paper said. None of the new missiles had been fired yet, it added. The CBS television network reported on Friday that Iran had installed new missiles along the Gulf and said Washington had warned Tehran not to use them against civilian shipping.  
JAPAN LINE SELLING TANKERS AND BULKERS. Major tanker operator, Japan Line Ltd <JLIT.T>, is selling 20 VLCCs and several bulk carriers for scrap or further trading, industry sources said. The tanker disposals include Japan Orchid (231,722 dwt), Japan Lupinus (233,641 dwt), Sovereign (233,313 dwt), Rosebay (274,531 dwt), Saffron (268,038 dwt) and Cattleya (267,807 dwt), all of which have been reported on the London sale and purchase market, they said, but refused to give further details. Japan Line officials declined to comment.  
BRAZILIAN BANK WORKERS DECIDE ON NATIONAL STRIKE. Brazilian bank workers voted to launch a nationwide strike this month, compounding labour unrest arising from the failure of the government's anti-inflation plan. At a rally in this city, about 100 km northwest of Sao Paulo, about 5,000 bank workers voted to strike on March 24 unless their demand for 100 pct pay rises is met. Wilson Gomes de Moura, president of the national confederation which groups the bank employees' 152 unions representing 700,000 workers, told Reuters the indefinite stoppage would affect all banks. The vote came as a stoppage by seamen entered its third week and as 55,000 oil workers threatened action against the state-owned petroleum company Petrobras.  
BIFFEX MEMBERS TO BALLOT ON MERGER. Members of the Baltic International Freight Futures Exchange (BIFFEX) are to be balloted at the end of this week on whether it will merge with the London Commodity Exchange or come under a new umbrella of Baltic futures exchanges, a BIFFEX official said. The final decision will be left with the BIFFEX board, which will meet at the end of this month, he said. Last week three exchanges currently trading on the Baltic Exchange, the London Potato Futures Association, the GAFTA Soya Bean Meal Futures Association and the London Meat Futures Exchange, instructed legal advisers to implement a merger.  
N.Z. PORTS REOPEN, BUT FURTHER CLOSURES POSSIBLE. Harbour workers returned to work this morning after a strike in support of pay claims closed New Zealand's 15 ports for 24 hours yesterday. But the Harbour Workers Union told reporters the pay dispute is not settled and the union's national executive will meet here tomorrow to decide its next moves. "Obviously we will be considering further industrial action," Union secretary Ross Wilson said in a radio interview. The union rejects employers offers of a 7.5 pct pay rise over 15 months. It wants 7.0 pct over 12 months.  
JAPAN FOREIGN SHIPBUILDING ORDERS RISE IN FEBRUARY. New foreign shipbuilding orders received by Japanese yards in February rose to six vessels totalling 329,999 gross tons from three ships of 79,499 tons in January, the Japan Ship Exporters Association said. This compared with six ships of 125,150 gross tons a year earlier, an association official said. The backlog of orders at end-February was 157 ships of 4.41 mln gross tons against 161 ships of 4.39 mln a month earlier and 265 vessels of 6.81 mln a year earlier, an association official said.  
DUTCH PORT EMPLOYERS RESUME LAY-OFF PLANS. Employers in Rotterdam's troubled general cargo sector have decided to restart stalled redundancy procedures within a week, employers' organisation labour relations manager Gerard Zeebregts told Reuters. Port and transport union spokesman Bert Duim said the employers' decision would not lead to the immediate resumption of eight weeks of strikes in the sector. The strike action was called off on Friday after an interim court injunction against the employers' plans for 350 redundancies this year. A court in Amsterdam ruled last week the employers had made an error in the complicated procedure for obtaining permission for the redundancies and therefore could not proceed until a final ruling on May 7. Zeebregts said the initiation of new procedure might well take up to two months, but the employers were not prepared simply to sit and wait for the May 7 court ruling with the chance they would have to start all over again in any case. "We cannot afford not to continue with our plans. The strikes have already cost a lot of money and damaged business, and further delays would do even more damage," Zeebregts said. The campaign of lightning strikes in the port's general cargo sector began on January 19 in protest at employers' plans for 800 redundancies from the sector's 4,000 strong workforce by 1990, starting with 350 this year.  
SHIPS HELD UP AT CALCUTTA. Some 10 Indian ships have been held up at Calcutta port after four days of industrial action by local seamen, a spokesman for the shipowners' association INSA said. The dispute has prevented local crewmen signing on and off, but has not affected foreign ships with international crews docking at Calcutta, which exports tea and jute and imports machinery, crude oil and petroleum products, the spokesman said. Foreign ships may also suffer if dock workers join the action, he said. The Shipping Corporation of India (SCI) has asked its ships to avoid the port until the dispute is over, National Union of Seafarers in India president Leo Barnes said.  
ECONOMIC SPOTLIGHT - JAPAN SHIPBUILDERS RECOVERY. Japan's ailing shipbuilding industry plans to refloat itself in a few years from the twin rocks of recession and a strong yen through capacity and workforce cuts and greater use of computers, industry sources told Reuters. The salvage measures, which include a government-sponsored rationalisation program, are aimed at clawing back some of the market which Japan, the world leader, has lost to South Korea through currency and labour cost disadvantages, they said. The sources said South Korea's yards are now some 35 pct more competitive than Japan's due to such factors. The government plans to help the industry shed 20 pct of current capacity within two years through mergers and regrouping under legislation put before Parliament this month and likely to be approved by May or June, the sources said. They said from September a semi-government body will assure repayment of about 50 billion yen in liabilities incurred through job losses and the sale of excess capacity, and another 30 billion for buying unneeded land and equipment. Last Friday, the Shipbuilders Association of Japan applied to the Fair Trade Commission to form a cartel to slash tonnage built to about half of total capacity for a year from April 1. The commission has held several hearings with the industry and approval should be given this month, the sources said. A clampdown on output over one or two years combined with a planned cost-cutting and streamlining program and state support should help Japanese yards recover their international competitiveness, they said. Under the cartel proposals, 33 yards each capable of building ships of more than 10,000 gross tonnes would build a maximum of three mln compensated gross registered tonnes (CGRT) in 1987/88. This is about half of total capacity. This will ease the cut-throat competition which forced most yards to sign orders below cost, the sources said. The industry is likely to seek to renew the cartel for 1988/89 as the Transport Ministry sees new orders falling to 3.1 mln CGRT in 1988/89 from 3.3 mln in 1987/88, they said. The rationalisation program includes a cut of 20,000 to 30,000 of the estimated 100,000 workers in the industry between 1986 and 1989. Japanese yards topped world order books at end-December, followed by South Korea and Taiwan, according to Lloyd's Register of Shipping. However, falling orders and declining international competitiveness due to the strong yen led to heavy losses in the industry, the sources said. Four of Japan's six major heavy machinery and shipbuilding companies reported current deficits in the first half of the year to March 31 and five of them are expected to report current deficits for the whole of 1986/7, they said. The shipbuilding companies' streamlining program will raise productivity to compete with South Korean yards which have also been hard hit by declining orders and low ship prices in recnt years, the sources said. In Japan, no single yard leads the industry, resulting in fierce competition and slow progress in reducing capacity. The two largest firms -- Mitsubishi Heavy Industries Ltd <MITH.T> and Ishikawajima-Harima Heavy Industries Co Ltd <JIMA.T> -- account for only 30 pct of ships built, the sources said. "World shipowners hope Japanese yards can manage to ride out the recession as their technology is the best in the world," said an official at a major Japanese shipping company. The Japanese merchant fleet, the largest after Liberia's, has no intention of shifting to other countries to buy ships, and this will encourage Japanese yards, the sources said.  
SHELL CANADA <SHC> TO SELL TANKERS TO SOCANAV. Shell Canada Ltd said its Shell Canada Products Ltd unit will sell three tankers, effective April one, 1987, to <Socanav Inc>. Terms were not disclosed. Shell also said it will contract exclusively from Socanav normal marine distribution requirements for domestic markets, with some exceptions, for an initial 10-year period. Shell also said its Shell Canadian Tankers Ltd unit will lay off 13 employees and that Socanav will offer jobs to 41 employees. The three Shell vessels are Lakeshell, Eastern Shell and Northern Shell, which range in size from 6,000 to 10,000 tonnes, Shell said. Shell Canada is 72 pct owned by Royal Dutch/Shell Group <RD>.  
U.S. CARGO PREFERENCE FUNDING ACCORD SEEN NEAR. The U.S. Departments of Agriculture and Transportation are close to agreement on how to fund the increasing share of food aid to be shipped on U.S. flag vessels under a 1985 farm bill provision on cargo preference. Melvin Sims, USDA's general sales manager told a House Agriculture Appropriations subcommittee hearing that the two departments are negotiating a "memorandum of understanding" on cargo preference. Under a 1985 farm bill provision, the percentage of food aid shipments carried on U.S. flag vessels was to gradually increase over three years to 75 pct in 1988. The increased cost of using U.S. vessels was to be funded by the Transportation Department instead of USDA. However, USDA officials said Transportation has so far contributed no money. The agreement between USDA and Transportation is expected to resolve the matter, USDA officials said. Tom Kay, administrator of the USDA's Foreign Agricultural Service said yesterday the requirement that more food aid shipments be carried on U.S. vessels has been difficult to meet. "As the tonnage (required under cargo preference) goes up, its going to be harder and harder to meet," Kay said. Two farm state Congressmen, Pat Roberts (R-Kan.) and Glenn English (D-Okla.) said cargo preference makes U.S. farm export programs more costly and the program should be eliminated. In the past, farm interests opposed to cargo preference have been defeated in Congress by the maritime interests who view cargo preference as vital to the U.S. shipping fleet.  
ACCORD SAID IN SIGHT IN BRAZIL SEAMEN'S STRIKE. An accord is in sight in Brazil's 20-day-old national seamen's strike, which has seriously delayed exports, a union official said. The official, speaking from strike headquarters in Rio de Janeiro, said up to 30,000 of Brazil's 40,000 seamen were still on strike. He said the others had returned to work over the last week, accepting pay offers of 120 pct from four private companies and from the Frota Nacional de Petroleiros (Fronape), part of the state-owned oil company Petrobras. The association grouping private shipowners, Syndarma, has also offered 120 pct but talks have so far been deadlocked over payment for overtime. The union official said he believed this issue would be resolved shortly.  
PANAMA CANAL OFFICIAL CONFIRMS NO 1988 TOLL RISE. Panama Canal toll charges will not rise in the year to end-September 1988, despite last October's landslide which dumped 0.5 mln cubic yards of debris into the waterway, Canal Commission Administrator Dennis McAuliffe said. He told a press conference that in confirming the Commission's earlier announcement of unchanged tolls for 1988, he was not necessarily implying there would be a rise in 1989. The canal would probably make a five to six mln dlr loss in the current financial year but this could be carried over and met from next year's revenues. This year's deficit resulted from the landslide which cost the canal about 15 mln dlrs, McAuliffe said. This included eight to nine mln dlrs in immediate costs with the rest being spent on earth-moving operations to prevent any further landslides. He said the landslide was not caused by deforestation and he described as grossly exaggerated reports that there was any threat to the canal's water supply in the foreseeable future. Studies concerning the possibility of widening the Gaillard cut would not be affected by the landslide, he said, adding that he expected the canal board to determine whether and when the canal needed widening by January 1988 at the latest.  
U.S. SAYS NO SIGNAL BEING SENT BY SHIP MOVEMENTS. A U.S. Navy battle group led by the U.S. aircraft carrier Kitty Hawk is in the northern Arabian Sea amid renewed concern about the safety of shipping off the coast of Iran, U.S. officials said today. But Pentagon spokesman Fred Hoffmann said that reports the naval strike force was in the region did not mean the United States was sending a new warning to Iran against escalating attacks on shipping in the Persian Gulf. "Nothing like that has happened," he said. "No signal is being sent." He said that the Kitty Hawk is operating in an area where it usually does. "It's normal. It's in the waters where it's supposed to be. It's been there for over a month." The Kitty Hawk and its force of warplanes is the mainstay of the U.S. Indian Ocean Battle Group which patrols a vast area extending from the Indian subcontinent through the Arabian Sea. With the Kitty Hawk and its group in the Arabian Sea to the south and the U.S. Mideast Task Force in the Persian Gulf to the north, the United States has 10 warships on either end of the strategic Straits of Hormuz. The Pentagon, as is its custom, declined to confirm the exact whereabouts of the ships or what they were up to. State Department officials cited concern about the safety of ships passing through the Straits on the vital oil supply run to the Gulf. Iran has conducted repeated attacks on shipping in the Gulf and U.S. officials have said that Teheran has recently equipped itself with powerful Chinese and Italian-made anti-ship missiles, posing a greater threat.  
CHINESE PORT UNDERUSED DESPITE CONGESTION NEARBY. The Chinese port of Ningbo is working well below capacity despite being only 130 miles from Shanghai, which is seriously congested, a port official said. Jiang Feng Xiang said the port -- the deepest in China -- handled 17.95 mln tonnes of cargo last year, up from 10.44 mln in 1985, but well below its potential capacity of 32 mln tonnes. Shanghai handled 100 mln tonnes of cargo in 1986. Jiang said Ningbo is under-utilised because of its inadequate facilities, including a single track rail line linking it to Hangzhou, where it joins the national network. Ningbo handles crude oil exports and transhipments of coal from north to south China and imports include fertiliser and soda ash and iron ore from Brazil and Australia. The docks can handle ships of up to 150,000 tonnes and oil tankers of up to 200,000 tonnes can load and unload in the harbour. Most of Ningbo's port infrastructure has been built since 1979, official publications show. A container berth and two timber and three general cargo berths will be added during the current 1986-90 five-year plan, Jiang said. "The rail line to Hangzhou will be double tracked by 1995. By 2000, maybe, we will overtake Shanghai," he added.  
HIGH WINDS KEEP VESSELS TRAPPED IN BALTIC ICE. Strong south-easterly winds were keeping many vessels trapped in the ice off the Finnish and Swedish coasts in one of the worst icy periods in the Baltic for many years, the Finnish Board of Navigation said. In Finland and Sweden up to 50 vessels were reported to be stuck in the ice, and even the largest of the assisting icebreakers were having difficulties in breaking through to the stranded ships, coastguard officials said. However, icy conditions in the southern Baltic at the Soviet oil ports of Ventspils and Klaipeda had eased, they said. Weather officials in neighbouring Sweden said the icy conditions in the Baltic were the worst for 30 years, with ships fighting a losing battle to keep moving. In the coastal stretches of the Gulf of Bothnia, which divides Finland and Sweden, the ice is up to one metre thick, with drifts and currents packing it into almost impenetrable walls three metres high, Swedish coastguard officials said. Weather forecasts say winds may ease during the weekend but a further drop in temperature could bring shipping to a standstill, the officials said.  
FREIGHT, INSURANCE PROPOSED FOR CCC SALES - USDA. the U.S. Agriculture Department is proposing to permit coverage of freight cost and marine and war risk insurance for sales  of all agricultural commodities sold on credit terms under the Commodity Credit Corporation's, CCC, credit guarantee programs. The proposal only applies to commodities that are sold by exporters on a cost and freight, C and F, or cost, insurance and freight, CIF, basis, since these costs would be included in the exporter's sale price to the foreign buyer, it said. Under current programs, freight costs can be covered only for export sales of U.S. breeding animals. It asked for comments on the proposal by April 20.  
IRAN SAYS IT INTENDS NO THREAT TO GULF SHIPPING. Iran said reports that it intended to threaten shipping in the Gulf were baseless, and warned the U.S. And other countries not to interfere in the region. Tehran radio, monitored by the BBC, quoted a Foreign Ministry spokesman as saying any attempt at interference would be met by "a strong response from Iran and other Moslems in the world." U.S. Defence Secretary Caspar Weinberger, in remarks apparently unrelated to the broadcast, said the U.S. Would do whatever was necessary to keep shipping lanes open in the face of new Iranian anti-ship missiles in the Gulf. The U.S. State Department said two days ago Tehran had been told of U.S. Concern that Iranian anti-ship missiles posed a threat to the free flow of oil from the Gulf. U.S. Officials have said Iran has new Chinese-made anti-ship "Silkworm" missiles, which pose a greater threat to merchant ships than missiles used before. The Iranian spokesman said the reports that Iran intended to attack ships were "misleading propaganda." He said Iraq's President Saddam Hussein was the main cause of tension in the Gulf and said Iran would continue to use "all its legitimate means to stem the cause of tension." Weinberger said in a television interview in the U.S. "We are fully prepared to do what's necessary to keep the shipping going and keep the freedom of navigation available in that very vital waterway." "We aren't going into any disclosures or discussions of what might happen, but we are certainly very sympathetic to and listening carefully to any suggestions for our assistance in keeping navigation free in that area," he said. Weinberger said U.S warship movements in the Gulf area were not unusual. A U.S. Navy battle group led by the aircraft carrier Kitty Hawk is currently in the northern Arabian Sea. The Iranian spokesman was quoted by Tehran radio as saying the U.S. Was trying to build up its military presence in the region.  
IRANIAN TANKER ATTACKED OVER WEEKEND - LLOYDS. The Iranian steam tanker Avaj, 316,379 tonnes dw, was attacked and hit at 1715 hours on March 21, Lloyds Shipping Intelligence service reported. One person was killed. The tanker is owned by the National Iranian Tanker Co.  
N.Z. PORTS REOPEN, BUT FURTHER DISRUPTION LIKELY. New Zealand ports reopened at 0730 hrs local time (1930 GMT March 22) after being closed since March 19 because of a strike over pay claims by watersiders, a Waterside Federation spokesman said. But industrial action by other port workers is likely to cause further disruption, Harbour Workers union secretary Ross Wilson told Reuters. Wilson said his members are holding stopwork meetings this morning to consider further stoppages over their pay claim. The two disputes are not related. Harbour Workers around the country went on strike for 24 hours on March 16, but Wilson said any further action will occur on a port-by-port basis.  
WEST GERMAN SHIP SINKS OFF WEST AFRICA. The West German-registered motor vessel Stefan E. Sank off the West African coast early today and one of its eight crew members was killed, a Spanish navy spokesman said. He said the captain of the Singapore-registered tanker Nord Pacific reported in a radio message that he had picked up the remaining seven crewmen of the 2,223 tonnes dw Stefan E., Together with the body of the dead man.  
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ. Iran has test-fired its newly acquired Silkworm anti-shipping missile in the Strait of Hormuz and has set up at least two land-based launching sites in the area, a British naval source in the Gulf said. The source, who declined to be identified, said Iran had fired the Chinese-made missile at a hulk off its southern Gulf naval port of Bandar Abbas and scored a hit. "These missiles pack a fairly big punch," he told Reuters. "There is no doubt they could be used to target (shipping) across the Strait of Hormuz." Tension in the Gulf has risen since U.S. Officials last week broke the news that Iran had acquired the Silkworm missiles. The U.S. Has said it will not allow Iran to use the missiles to choke off oil shipments and has offered its warships to escort Kuwaiti tankers past the missile batteries. But Tehran denied last Sunday it intended to threaten Gulf shipping and warned the U.S. Any interference in the region would meet a strong response. The British naval source said the Silkworms were in place at at least two sites around the Strait of Hormuz, but would not give the exact location.  
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ. Iran has test-fired its newly acquired Silkworm anti-shipping missile in the Strait of Hormuz and has set up at least two land-based launching sites in the area, a British naval source in the Gulf said. The source, who declined to be identified, said Iran had fired the Chinese-made missile at a hulk off its southern Gulf naval port of Bandar Abbas and scored a hit. "These missiles pack a fairly big punch," he told Reuters. "There is no doubt they could be used to target (shipping) across the Strait of Hormuz."  
BRAZIL SEAMEN SAY STRIKE NEAR END. About half of Brazil's 40,000 seamen have returned to work after accords with 22 companies, and the national strike which began on February 27 looks close to ending, a union spokesman said. The spokesman, speaking from strike headquarters in Rio de Janeiro, estimated that 80 ships were strike-bound. The seamen have settled for 120 pct pay increases with the individual companies but are still discussing the issue of overtime payments with the shipowners' association, Syndarma.  
IRAN SAYS HAS BETTER WEAPONS THAN SILKWORM. Iranian Prime Minister Mir-Hossein Mousavi said Iran had "more effective" missiles at its disposal than the shore-to-sea missiles which had provoked U.S. Concern, Tehran Radio reported. A U.S. State Department spokesman said last week Iran had acquired Chinese-made Silkworm missiles which posed a greater threat to shipping in the Gulf than the weapons previously used. Tehran Radio, monitored by the British Broadcasting Corp, quoted Mousavi as saying that Tehran officially announced after its forces overran southern Iraq's Faw peninsula in February last year that it had shore-to-sea missiles. "The fact that the Americans, after so much delay, are now thinking of expressing their concern with panic is because Reagan needs this sensation now," said Mousavi, speaking after a cabinet meeting in Tehran. "We also announce today that these missiles are not the limit of our war capabilities in the Gulf," he added. Mousavi said the security of the Gulf region had nothing to do with the U.S. But Iran would resort to any action to defend the Gulf, "even those actions which are not thought probable by Westerners."  
ARGENTINE PORT WORKERS TAKE INDUSTRIAL ACTION. Argentine port workers began an indefinite protest against safety conditions at the port of Buenos Aires, stopping work for one hour per shift, a press spokesman said. He said three port workers had died over the last month in accidents. He said the decision to take action was made after a port worker died yesterday after being electrocuted.  
LIBERIAN ORE CARRIER IN COLLISION IN RIVER ELBE. The Liberian motor bulk carrier, Trave Ore, 106,490 dwt, loaded with ore, and the 2,852 dwt West German motor vessel Christa, collided late last night on the River Elbe near buoy 129, Lloyds Shipping Intelligence said. The Trave Ore proceeded by its own means to Hamburg. The Christa was taken in tow with a damaged bow. The Liberian vessel was concluding a trip from Seven Islands to Hamburg.  
BRAZILIAN LABOUR UNREST SPREADS, MANY BANKS SHUT. Brazil's labour unrest is spreading, with many banks, universities and government statistical offices on strike and more pay disputes looming. Bankworkers' leaders said that a national strike launched yesterday to press for a 100 pct immediate pay rise and monthly salary adjustments had the support of most of the 700,000 workforce. The strike today closed the stock exchanges of Sao Paulo and Rio de Janeiro. For the government the one positive development on the labour front was the gradual return to work of the nation's 40,000 seamen, who began a national strike on February 27. A union spokesman in Rio de Janeiro told Reuters about half the seamen had returned to work after accords with 22 companies and that the strike looked close to an end. Otherwise the labour scene looked bleak, with the bank strike posing the most serious problems for Brazil's crisis-laden economy. "If this goes on for more than a few days it will have a serious effect because normal financial operations will grind to a halt," said a western diplomat in Sao Paulo. Today Brazil's 50,000 university teachers in the 42 federal universities launched a national strike, with a broad political demand as well as a pay claim. David Fleischer, head of the political science department in Brasilia university, told Reuters the National Association of Higher Education Teachers wanted a full congressional inquiry into what had happened to government education funds. He said the universities were strapped for cash and that the association suspected the junior partner in the coalition government, the Liberal Front Party, PFL, of using education funds for projects which had helped their candidates in elections. The PFL holds the Education Ministry. Hardly any sectors of the economy are proving immune to the current labour unrest, caused by the return of high inflation, officially pegged at 33 pct for January-February. Other possible strikes looming include stoppages by oil industry workers and social security workers.  
NORMAL WORK RESUMES AT NEW ZEALAND PORTS. Normal work has resumed at New Zealand ports as negotiations between harbour board workers and employers continue. Wellington Harbour Board Workers' Union secretary Ross Wilson told reporters talks late yesterday ended with agreement to take unresolved issues before an industrial conciliator. Wilson said the only remaining issue is the length of the union award. The dispute originally was about wage rates and the form of industry negotiations. Cook Strait ferry sailings resumed after Marlborough Harbour Board workers returned to work this morning, ending their industrial action a day early. The Waterside Workers' Federation, which struck for most of last week and held more than one mln tonnes of shipping in ports, meets on Monday and Tuesday in conciliation with the Waterfront Employers' Association. Union Secretary Sam Jennings said: "We've got two days of talks. If it's not all cleaned up by then ... I don't know what will happen."  
ST LAWRENCE SEAWAY OPENING STILL MARCH 31. The St Lawrence Seaway between Lake Ontario and Montreal is still scheduled to open for the shipping season on March 31, a Seaway official said. The Great Lakes could have been open for traffic earlier this month due to the mild Winter, but scheduled repairs to the Welland Canal joining Lake Erie with Lake Ontario will keep that section closed until the April 1 opening, she said. One lock system in the four-lock Soo Canal joining Lake Superior with Huron was opened on the morning of March 22, but only three commercial vessels have been locked through so far, according to an U.S. Army Corps of Engineers official. The Soo Canal is currently only open for daylight vessel movement, with 24 hour movement allowed beginning March 29, she added.  
UNITED STATES LINES LAYS OFF FAR EAST STAFF. <United States Lines Inc> has laid off 260 employees, almost its entire Far East staff, its Hong Kong office general manager Elliott Burnside told Reuters. He also said calls by two of its container ships to Busan, South Korea and Kaohsiung, Taiwan, had been cancelled. He declined comment on local press reports that U.S. Lines planned to suspend operations because of failure to restructure its 1.27 billion U.S. Dlr debt, but said the firm would make an announcement later today. U.S. Lines filed for protection from its creditors under Chapter Eleven of the U.S. Federal law last November. The English-language South China Morning Post said U.S. Lines decided yesterday to sell its two remaining transpacific service fleets and assets and those of its U.S.-South America operation. It quoted a letter by company's chief executive Charles Hiltzheimer that said the ships and assets will be bought by rival U.S. Shipping companies, subject to approval by their boards. U.S. Lines' Far East operations comprise offices in Hong Kong, Singapore, Manila, Busan, Seoul, Tokyo, Yokohama, Kobe and Osaka, Burnside said.  
STORMY WEATHER TO DISRUPT NORTH SEA SHIPPING. Very stormy weather is likely in the North Sea through Saturday, disrupting shipping in the region, private forecaster Accu-Weather Inc said. Rain will accompany the strong winds that are expected over the North Sea today into tonight. Saturday will also be very windy and cooler with frequent showers. Winds today will be southwest at 30 to 60 mph, but will become west to northwest tonight and Saturday at 25 to 50 mph. Waves will build to 20 to 30 feet today and tonight and continue Saturday. Wind and waves will not diminish until late in the weekend.  
LIBERIAN SHIP GROUNDED IN SUEZ CANAL REFLOATED. A Liberian motor bulk carrier, the 72,203 dw tonnes Nikitas Roussos, which was grounded in the Suez canal yesterday, has been refloated and is now proceeding through the the canal, Lloyds Shipping Intelligence said.  
ABIDJAN PORT ACTIVITY RISES. The tonnage of goods passing through Ivory Coast's main port of Abidjan rose 2.3 pct last year, according to the Ivorian Chamber of Commerce. Its monthly report said 9.47 mln tonnes of goods passed through the port last year compared with 9.26 mln the year before. Exports fell to 3.75 mln from 3.89 mln tonnes while imports rose to 5.72 mln from 5.37 mln.  
BIFFEX LOOKING TO JOIN NEW FUTURES EXCHANGE. The Baltic International Freight Futures Exchange (BIFFEX) said it agreed to pursue negotiations with other futures markets on the Baltic Exchange with a view to merging into a new futures exchange. Legal advisers have already been instructed to implement amalgamation of the London Potato Futures Association, the Soya Bean Meal Futures Exchange and the London Meat Futures Exchange. The London Grain Futures Market has also discussed merging with the other markets. The aim of the merger is to seek Recognised Investment Exchange status as required by the 1986 Financial Services Act.  
JAPANESE SHIPYARDS TO FORM CARTEL, CUT OUTPUT. Japan's ailing shipyards have won approval from the Fair Trade Commission to form a cartel to slash production to about half of total capacity for one year, effective April 1, industry sources said. The approval follows an act of parliament passed last week designed to help the industry regroup and shed 20 pct of capacity by March 31, 1988, Transport Ministry officials said. The cartel, comprising 33 yards capable of constructing ships of more than 10,000 gross tonnes, will limit newbuilding output to a maximum of three mln compensated gross registered tonnes in 1987/88, the Shipbuilders Association of Japan said. Industry sources said the 33 will seek to renew the cartel in 1988/89 in the belief demand will remain sluggish. Last week's temporary act of parliament also allows shipbuilders to receive favourable taxation terms plus up to 50 billion yen in compensation for liabilities incurred through job losses and the sale of excess capacity. Up to 30 billion yen has been allocated for purchasing redundant land and equipment from shipbuilders. The Ministry will start drawing up its restructuring guidelines from April 1 and the yards will implement the guidelines from September, industry sources said.  
B AND C REORGANISES COMMERCIAL OPERATIONS. British and Commonwealth Shipping Co Plc <BCOM.L> said that it would reorganise its commercial and service operations into a single public grouping with autonomous management. The group has expanded rapidly in the past year through the 672.5 mln stg acquisition of <Exco International Plc> and 90 mln bid for <Steel Brothers Holdings Plc>. It noted that its operations were now divided between financial services, including money broking, investment management and forfaiting, and more traditional areas such as aviation, hotels, commodity trading and office equipment. It said that each sector had exciting prospects but required different methods of management and financing. B and C planned to form a new public company to hold the commercial operations and envisaged it operating with a capital of between 400 mln and 600 mln stg. It has retained Barclays de Zoete Wedd to advise on the introduction of independent investors to subscribe for additional capital, and believes that the proportion of equity capital held by outside investors would not exceed 20 pct of the total. The statement said that with the continued support of B and C, together with outside capital, the new grouping would emerge as a major group in its own right with the ability to take advantages of opportunities as they arose. However, the group would not seek a listing for the time being. B and C also said that its chairman, Lord Cayzer, planned to retire in June. The company proposed that he be appointed life president and that current chief executive John Gunn should take over as chairman. B and C shares eased 11p to 459p at 1040 GMT.  
HAPAG ORDERS NEW CONTAINER SHIP FROM CHINA. <Hapag Lloyd AG> said it ordered a new container vessel from China for its Australia service. The order was given to the <Hudong shipyards> in Shanghai after lengthy negotiations with West German shipbuilders, the company said in a statement. The Chinese firm offered to build the vessel at over 30 mln marks less than West German yards, despite government subsidies which Bonn pays its ailing shipbuilding industry, Hapag said. A company spokesman would not comment on the total order value but said the new vessel would replace the 33,333 dwt Sydney Express in 1989 and would carry 2,700 container units.  
THAILAND BUYS YUGOSLAV CRANES IN BARTER DEAL. The Cabinet approved a plan for the Port Authority of Thailand to buy six gantry cranes from Metalna Co of Yugoslavia for about 13.4 mln dlrs, a government spokesman said. He said Thailand will pay for 25 pct of the cost of the cranes in U.S. Dlrs and the rest by sales of rice, textiles and other commodities to Yugoslavia. The Bangkok Shipowners and Agents Association has appealed to the government to scrap the purchase plan. It said it would be an unnecessary expense as most vessels calling at the port already have their own cargo handling equipment.  
ST LAWRENCE SEAWAY OPENS SHIPPING SEASON. The St Lawrence Seaway said the first ship of the season passed through the St Lambert lock here this morning, officially opening the 2,300-mile-long waterway's 1987 shipping season. The seaway has said it expects little increase in freight levels this year from last year when it moved 37.6 mln tonnes of freight between Montreal and Lake Ontario and 41.6 mln tonnes on the Welland Canal, which links Lake Erie and Lake Ontario. The canal is scheduled to open tomorrow. Officials expect the waterway to lose nine to ten mln Canadian dlrs this year, about the same as the estimated deficit for fiscal 1986-87, which ends today.  
U.S. CARGO PREFERENCE SQUABBLE CONTINUES. The U.S. Agriculture Department said it will begin charging interest tomorrow on the over 12 mln dlrs the Department of Transportation, DOT, owes USDA to pay for its share of the cost of shipping food aid on U.S. vessels. USDA General Sales Manager Melvin Sims told the Senate Appropriations Agriculture Subcommittee his department had billed DOT 12 mln dlrs, and that interest on that amount and an additional charge would begin accruing April 1. USDA's Foreign Agricultural Service Administrator Thomas Kay told Reuters DOT could owe USDA as much as 20 mln dlrs. The two departments are trying to hammer out an accord on how to fund the increasing share of food aid required to be shipped on U.S. flag vessels under a 1985 farm bill provision on cargo preference. Sims said the agencies were near to reaching a memorandum of understanding governing how DOT would pay for its share of the cargo preference costs. Under the 1985 bill, the percentage of food aid shipments carried on U.S. vessels was to increase gradually over three years to 75 pct in 1988 from 50 pct. Although the increased cost was to be funded by DOT, Sims said that department to date has contributed no money.  
LONDON METAL FREIGHTS. Rotterdam/Karachi 20,000/21,000 mt shredded scrap 7,000/1,100 15-30/4. Bin Qasim/Shanghai 25,000 mt pig iron 1,500 fhex/1,200 shex 1-10/4. Chungjin/Manila 4,200 mt steel coils 800/liner discharge 23-30/4. Bilbao/one port Vietnam 5,000 mt steels fio 1,000/500 end April Singapore/Mizushima 6,000/10,000 mt steel scrap fiot 1,200/3,00 2-12/4.  
LONDON ORE ENQUIRIES/FIXTURES. South Africa/Salvador, Brazil 15,000 long tons manganese ore 2,500/1,500 end April. Callao/Crotone 5,000 mt minerals 4,000/2,000 spot. Geraldton/Tampico 13,500 mt bulk mineral sands fio 10,000/2,000 1-10/5. Itea/Dunkirk 20,000 mt bauxite seven days all purposes 10-13/4. Tampico/North Spain 15,000 mt ore two days shinc/3,000 shex 5-25/4. One port German North Sea/USG 10,500 mt bulk ore 2,500/4,000 7-13/4.  
AGENCY REPORTS 41 SHIPS WAITING AT PANAMA CANAL. The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 41 ships waiting to enter the canal early today. Over the next two days it expects -- 4/01  4/02 Due: 34    34 Scheduled to Transit: 41    39 End-Day Backlog: 34    29  Average waiting time tomorrow -- Super Tankers  Regular Vessels North End:  25 hrs      11 hrs South End:  24 hrs      31 hrs  
GULF BARGE FREIGHT HIGHER IN NEARBYS ON CALL. Gulf barge freight rates continued to show a firmer tone in the nearbys on the assumption that changes in the Gulf posted prices will encourage increases in both PIK-and-roll activity and barges shipments, with a total of 21 barges traded this morning on the ST Louis Merchants' Exchange call session, versus nine yesterday, dealers said. Quotes included - - This week Mississippi River (Granite City, MLA if P/O) traded at 175 pct of tariff, five percentage points above yesterday's bid. - Next week Mississippi (Alton/Granite City, MLA if P/O) bid five points higher at 175 pct, offered at 190. - Five barges each week April MidMississippi River (Dubuque/south) traded at yesterday's bid of 170 pct. - April Illinois River (ex Chicago) 160 pct bid, offered 10 points higher at 170. - May same section 140 pct bid, offered five lower at 145. - May MidMississippi River (Dubuque/south) bid 2-1/2 points higher at 142-1/2 pct, offered at 145. - June/July lower Mississippi River (Memphis/Cairo) offered at 120 pct, no bids. - June/Aug upper Mississippi River (Lacrosse/Savage) offered at 150 pct, no bids. - Oct/Nov MidMississippi (Dubuque/south, L/H Nov Clinton/south) 170 pct bid/177-1/2 offered - no comparison. - December Illinois River (ex Chicago) 122-1/2 pct bid/127-1/2 offered - down 2-1/2 points on offer.  
TUGS TO ATTEMPT REFLOATING KOREAN BULK CARRIER. Seven tugs will attempt to refloat the South Korean motor bulk carrier Hyundai New World tonight, Lloyds shipping intelligence service said in its latest update. The vessel grounded close to Itaqui port in Brazil last night after undocking from Ponta da Madeira terminal. Lloyds said the 200,000 dwt vessel is carrying about 180,000 tons of ore. Five holds are partially flooded and there is some leakage of bunkers from double bottom tanks. At low water tide the vessel has a list of five degrees to port and the list increases as the tide rises.  
AUSTRALIAN TUG CREWS DELAY FOREIGN CONTAINER SHIPS. Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said.  
AUSTRALIA TUG CREWS BAR FOREIGN CONTAINER SHIPS. Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said.  
AGENCY REPORTS 30 SHIPS WAITING AT PANAMA CANAL. The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 30 ships waiting to enter the canal early today. Over the next two days it expects -- 4/03  4/04 Due: 36    28 Scheduled to Transit: 38    38 End-Day Backlog: 28    18 Average waiting time tomorrow -- Super Tankers  Regular Vessels North End:  19 hrs       8 hrs South End:  20 hrs      16 hrs  
U.S. NAVY SAID INCREASING PRESENCE NEAR GULF. Defence Secretary Caspar Weinberger has ordered the U.S. Navy to increase its presence near the Gulf in an effort to fulfil President Reagan's pledge to keep oil flowing to Europe and Japan, The New York Times reported. The newspaper quoted Pentagon officials as saying the Navy would keep the aircraft carrier Kitty Hawk on station in the Arabian Sea and the rest of the Indian Ocean until May, three months longer than planned. The Navy would then have a carrier battle group of six to eight warships in the area at all times rather than part of the time, as happens now, the paper said. The paper said that last month U.S. Intelligence sources said they had spotted land-based anti-ship missiles of a Chinese design known in the West as the HY-2 near the Strait of Hormuz. It said their purpose was seen as a signal Iran was ready to continue and perhaps step up the Gulf shipping war against Iraq. U.S. Carriers or battleships would sail out of range of those missiles, but within striking distance, the paper quoted officials as saying. From several hundred miles at sea, carriers could launch aircraft bombing runs or missile strikes, and battleships could fire long-range missiles, the paper said.  
KUWAIT MAY RE-REGISTER GULF TANKERS - NEWSPAPER. Kuwait may re-register part of its tanker fleet with foreign flag jurisdictions, including the U.S. And USSR, in an attempt to protect them from Iranian missile attacks in the Gulf war zone, U.S. Officials were quoted by the New York Times as saying. The transfers would allow the country of registration to escort Kuwaiti-owned ships in the Gulf. Kuwait had earlier declined an offer of U.S. Naval escorts as too public an admission of its need for protection, they said. Kuwait is also looking at flagging-out to European registries, the officials said. Soviet flag tankers transporting Kuwaiti oil through the Gulf may get Soviet escorts, the officials said. Kuwait had earlier considered having both USSR and U.S. Escorts, but the U.S. Was unwilling to give the Soviet Union a naval role in the region, the newspaper quoted the officials as saying. Kuwait has backed Iraq in the seven-year war against Iran and its ships have increasingly been the target of Iranian attacks. The U.S. And Kuwait have been negotiating for over a month on methods of protecting Kuwaiti ships.  
BRAZIL SEAMEN'S STRIKE ENDS. A Brazilian seamen's strike, which began on February 27 and has been tapering off for weeks, has now ended, a seamen's spokesman said. The spokesman said the seamen had signed an agreement with the state-owned Lloyd Brasileiro company on Saturday for a 120 pct salary rise. The national strike had been tailing off since mid-March as seamen struck individual accords with companies. At the height of the stoppage, seamen said about 200 ships were strike-bound.  
BERMUDA STAR <BSL> LEASES VESSEL. Bermuda Star Line Inc said it has leased a 23,500 ton passenger vessel from Orley Shipping Co Inc, of Liberia for a term with options extending for 15 years. The vessel, SS Liberte, will be renamed the Canadian Star and will be used for cruises to Montreal from New York, beginning in June. Orley SHipping is partially owned by Common Brothers PLC, a U.K. maritime firm which owns 60 pct of Bermuda Star's shares and arranged debt financing for the ship's purchase. Orley acquired the vessel from Banstead Shipping Ltd. Terms were not disclosed.  
AUSTRALIAN UNIONS LAUNCH NEW SOUTH WALES STRIKES. Australian trade unions said they have launched week-long strikes and other industrial action in New South Wales (NSW) to protest against new laws that would reduce injury compensation payments. Union sources said talks with the state government broke down last night, but the two sides are scheduled to meet later today in an attempt to find a compromise. Rail freight and shipping cargo movements in the country's most populous state were the first to be affected, and union officials said almost every business sector will be hit unless there is a quick settlement. The state government recently introduced a new workers' compensation act which would cut the cash benefits to injured workers by up to a third. The act is now awaiting parliamentary ratification. NSW state premier Barrie Unsworth has said workers' compensation has risen steeply in recent years and the proposed cuts would save hundreds of mlns of dollars a year. Union officials said industrial action could spread to other states as the federal government also plans to make sharp cuts in workers' compensation.  
JAPAN EXPECTED TO CUT BASE RATE FOR STATE BODIES. Japan is expected to cut the base lending rate for state financial institutions to 5.5 pct from 6.2 as part of the recent pact by major industrial nations in Paris, Finance Ministry sources said. They said the cut is based on a revision of the Trust Fund Bureau Law, which should be approved by parliament on March 3, abolishing the 6.05 pct minimum interest rate on deposits with the bureau. The bureau channels funds to government financial institutions for public works and other official uses, they said. The base lending rate for state bodies such as the Japan Development Bank, People's Finance Corp and the finance corporations of local public enterprises usually moves in tandem with long-term prime rates, the sources said. However, it was impossible for them to follow the last cut, to 5.8 pct from 6.2 pct on January 28, because the Trust Fund Bureau rate was legally set at 6.05 pct. The ministry will abolish the minimum rate and introduce a market-related one to resolve the problem and stimulate the domestic economy, they said. On Tuesday, the ministry allowed long-term bankers to cut their prime to a record low of 5.5 pct, effective February 28. The move suggested it had reached agreement with depositors using the bureau, the postal savings system of the Posts and Telecommunications Ministry and the Japan welfare annuity of the Ministry of Health and Welfare, the sources said. These ministries are trying to determine which market rates should be considered when setting the bureau's deposit rate, the ministry sources said. Coupon rates on new 10-year government bonds, minus 0.1 percentage points, is the likeliest choice, they added.  
ITALIAN TREASURY CUTS INTEREST ON CERTIFICATES. The Italian treasury said annual coupon rates payable March 1988 on two issues of long-term treasury certificates (CCTs) would be cut by about four percentage points compared with rates this March. Coupon rates on 10-year certificates maturing March 1995 will fall to 9.80 pct from 13.65 pct and rates on 10-year issues maturing in March 1996 would fall to 10.05 pct from 14.30 pct. The Treasury also cut by 0.60 point six-monthly coupons payable this September on six issues maturing between September 1988 and September 1991. The issues carry terms of between five and seven years and will have coupon rates of between 4.85 and 5.65 pct in September compared with 5.45 and 6.25 pct this March.  
JAPAN TO PROMOTE INTEREST RATE LIBERALISATION. The Bank of Japan decided at a policy board meeting to promote further interest rate liberalisation by lowering the minimum denomination of regulation-free large deposits and by raising the interest rate ceiling on money market certificates (MMCs), a central bank official said. The new guideline will go into effect on April 6, the bank said. Under the guideline, the minimum denomination of regulation-free large deposits will be lowered to 100 mln yen from 300 mln. The interest rate ceiling of MMCs with maturities of between one year and two years will be set at 0.5 percentage point below the prevailing certificate of deposit rate, the bank said. But the ceiling on MMCs with maturities of one year or less will remain the same, or 0.75 percentage point below the CD rates. The minimum denomination of MMCs will be lowered to 10 mln yen from 30 mln. The bank also said time deposit rates will be lowered by 0.37 point, effective March 16, in line with the half-point cut in the official discount rate on February 23. New interest rates on two-year and one-year deposits at banks, for example, will be 3.64 pct and 3.39 pct per annum, respectively. Demand deposit rates, however, will remain the same.  
MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE.  MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE  
CORRECTED - MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO 3-1/4 PCT - CREDIT SUISSE.  CORRECTED - MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO 3-1/4 PCT - CREDIT SUISSE  
FED EXPECTED TO ADD TEMPORARY RESERVES. The Federal Reserve is expected to enter the U.S. Government securities market to add temporary reserves, economists said. They expect it to supply the reserves indirectly by arranging 1.5 to two billion dlrs of customer repurchase agreements. The Fed may add the reserves directly instead via System repurchases. Federal funds, which averaged 6.18 pct yesterday, opened at 6-3/16 pct and stayed there in early trading. Analysts said the rate is under upward pressure partly from settlement of 8.25 billion dlrs of five-year Treasury notes.  
FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
FED ADDS RESERVES VIA CUSTOMER REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange 1.5 billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-1/4 pct when the Fed began its temporary and indirect supply of reserves to the banking system.  
GM'S <GM> PONTIAC HAS INTEREST RATE INCENTIVES. General Motors Corp said its Pontiac Division has established an interest rate support incentive program, effective immediately, as an alternative to its current option bonus program. The company said qualified buyers of Pontiacs may now select special finance rates of 3.9 pct on 24-month contracts, 7.9 pct on 36-month contracts, 8.9 pct on 48-mopnth contracts or 9.9 pct on 60-month contracts.  The program is scheduled to expire April 30. Under the option bonus program, which is also scheduled to expire April 30, buyers receive cash bonuses on the purchase of Pontiacs equipped with option group packages, with the amount depending on the option level on each vehicle. The company said the special interst rate program applies to ann new 1986 and 1987 Pontiacs sold from dealer stock and delivered to customers during the program period.  A customer may choose only one program, it said.  
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED. The Bundesbank left credit policies unchanged after today's regular meeting of its council, a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct, and the Lombard emergency financing rate at 5.0 pct.  
SPAIN DEREGULATES BANK DEPOSIT INTEREST RATES. Spain's Finance Ministry deregulated bank deposit rates in an effort to raise competition among banks and bring legislation into line with the European Community (EC), a ministry spokesman said. The measure was published today in the Official State Gazette. It takes effect tomorrow and lifts restrictions on rates, now limited to six pct on deposits of up to 180 days. The government also enacted a decree cutting to one pct from 13 pct the proportion of total assets which banks must lend at favourable rates to industries classified "of public interest." Some bankers expect the deregulation of rates to result in a 20 pct drop in profits this year. Secretary of State for the Economy Guillermo de la Dehesa told Reuters in a recent interview the reduction in fixed asset investments would offset losses from the rate liberalisation.  
BANKERS WELCOME SPANISH RESERVE REQUIREMENT HIKE. Bankers welcomed the Bank of Spain's decision to raise the reserve requirement for banks and savings banks, saying it reflected the socialist government's determination not to ease up in the fight against inflation despite the painful social effects of four years of austerity. The central bank last night raised the requirement by one percentage point to 19 pct from March 13, saying that excess liquidity threatened money supply and inflation targets. Bankers said the move represented a change of tactic by the Bank, which until now has relied on raising interest rates to choke off money supply growth. "I think it's a good measure," a senior foreign banker said. "It's a faster way to get the job done than using interest rates and avoids unpleasant effects on other areas of the economy." "It shows that the political will is very strong. They know that controlling inflation will make industry more competitive and bring down unemployment in the long run," he added. The head of another foreign bank said that only a month ago, the Bank of Spain had dismissed his suggestion of a rise in reserve requirements, preferring to pursue its strategy of raising interest rates. But bankers said the high real interest rates on offer now -- around eight pct for overnight funds -- was attracting money from abroad, strengthening the peseta and making Spanish exports less competitive. The government says industry's competitiveness is also being hit hard by inflation. At 8.3 pct last year, the rate was way above that of Spain's major trading partners in the European Community, which it joined a year ago. To help meet this year's target of five pct, it is insisting pay rises stay at that level, setting the stage for clashes with trade unions, who say they have made enough sacrifices. Demonstrations by workers, students and farmers, whose demands essentially involve more government spending, have become an almost daily occurrence. But Prime Minister Felipe Gonzalez insists that the state is doing as much as it can. Bankers said the reserve requirement increase could have some impact on commercial lending rates but should not hit the money market too hard. The Bank of Spain, which only yesterday raised its key overnight call money rate to 13.5 pct, left it unchanged at today's auction. The rate has been increased nine times since the start of the year, when it was below 12 pct. Bankers said commercial lending rates were set to rise in any case with the end of the six pct maximium interest rate banks can offer for time deposits of up to six months. The measure will take effect tomorrow, following the publication of the decree in today's official gazette. Bankers say the liberalisation will increase the cost of funds and, inevitably, push lending rates higher. A companion measure, reducing the proportion of funds which banks must invest in specific areas, also takes effect tomorrow. Officials said when the cut was approved last month that it was aimed partly at compensating banks for higher interest rates.  
FED NOT EXPECTED TO TAKE MONEY MARKET ACTION. The Federal Reserve is not expected to intervene in the U.S. government securities market to add or drain reserves, economists said. Most economists said they did not expect the Fed to add reserves with Federal funds trading below six pct. They said the funds rate's softer tone may indicate that the need to add reserves in the current bank reserve maintenance period is smaller than previously estimated. Fed funds opened at 5-15/16 pct and remained at that level. Yesterday funds averaged 6.01 pct.  
BANK OF ENGLAND RESISTS PRESSURE FOR RATE CUT. The Bank of England again fought against money and bond market pressure for a pre-Budget interest rate cut, leaving the pound to take the strain with a further rise in its trade-weighted index to a six-month high. It closed at its best level since September 12, at 71.4 pct of its 1975 value on the index, as foreign investors continued to buy into a currency which offers high relative returns and the possibility of short-term capital gains, dealers said. Meanwhile, opinion is divided over whether the Bank can stop a cut before Budget Day, March 17, and why it should want to. The Bank's latest strong signal to the market that it wants rates to stay steady for the moment came in midafternoon, when it lent to the discount houses at a penal rate of 11-3/4 pct to relieve a money market shortage. "They're really making the discount houses suffer," said Stephen Lewis, economist at brokerage house Phillips and Drew. "Eleven and three-quarters pct is way above money market rates." This money market signal was apparently not accompanied by any sterling sales on the foreign exchanges, talk of which had inhibited strong rises yesterday and Tuesday, so buyers came strongly into the pound. The pound surged to a high of 1.5798/808 dlrs at the London close, up from the previous finish at 1.5650/60, and 2.8900/60 marks, up from 2.8720/50. "If this pressure keeps up...There is a possibility that rates could drop before the Budget," said Jeremy Hale, economist at finance house Goldman Sachs International Corp. Some gilt traders are forecasting a half-point cut in the base rate from the current 11 pct as early as tomorrow. However, analysts said the Bank of England will need to be convinced that the present rise is a fundamental re-rating rather than a result of short-term speculative gains. There are valid reasons for the Bank to be cautious, said Peter Fellner, U.K. Economist at brokers James Capel and Co. Markets have become highly optimistic about the chances of a Conservative Party victory in any early general election, and disappointment if Prime Minister Margaret Thatcher decides to hold back could lead to a decline in the pound and a setback for bonds, Fellner said. An election could be delayed until mid-1988, but most forecasts say it will be this year. Others note that the pound could yet prove vulnerable to oil price losses or a change of fortune for the dollar. However, analysts agree the Bank is largely trying to set the timing of a cut than holding out against one altogether. The authorities traditionally prefer a single sustainable rate move, one way or the other, to half points here and there. Some add the Bank will be influenced by signs that at least a proportion of the latest bout of sterling buying is long-term capital coming into the London market, notably from Japan. They argue that the pound is being perceived as a safer bet than the dollar, given the latters recent sharp falls and current political upheavals in Washington. The Bank may want to see another few points on the trade-weighted index before the Budget, argued Lewis. "But by then sterling should be firm enough to satisfy even the Bank of England," he added. The Bank declined to comment on its reasons for resisting pressure for a rate move before the budget, but banking sources said the authorities see the recent rise in sterling as more than just marking up by foreign exchange traders. Meanwhile, analysts noted the market ignored potentially harmful news on the trade front, today's figures showing that the current account deficit in 1986 was 1.1 billion stg. This was above previous estimates of the current account deficit and compares with a surplus of 2.9 billion stg in 1985. Fellner said that under more normal conditions this would have given the bond and currency markets a pause, but that they were too bullish to worry about such fundamentals. The guessing game over the timing of a cut has the clearing banks divided as well as the markets. Privately, some bank officials forecast the Bank will hold out at least for this week, but at least one bank says a rise is possible tomorrow. If a move comes before March 17, forecasts are for a half-point cut, with another half or full point about Budget day.  
FED'S JOHNSON SAYS HE DOES NOT SEE INCREASING PRESSURE ON INTEREST RATES.  FED'S JOHNSON SAYS HE DOES NOT SEE INCREASING PRESSURE ON INTEREST RATES  
BANK OF ENGLAND PRESSURE HOLDS BASE RATES. This week's Bank of England resistance to strong market pressure for lower interest rates succeeded in holding bank base rates at 11 pct. But at a cost of threatening the Chancellor of the Exchequer Nigel Lawson's policy, stated at the end of the Paris Group of Six meeting last month, that he wanted to see sterling broadly stable about then prevailing levels, market sources said. Since then, the pound has risen to 71.8 pct on its closing trade-weighted index, up from 69.7 pct imediately after the Paris meeting and up 0.4 on the day. Today's peak at 72.0 pct was its highest since August 19. A Treasury spokesman said Lawson had said he neither wanted a substantial rise or fall in sterling. The question is therefore how large a rise he is ready to see before acting. Paul Temperton, chief economist at Merrill Lynch Europe Ltd, estimated that the government wanted to see the trade-weighted index about 72-73 pct. "Even after this action over the last few weeks, sterling's only just within striking distance of that range," he said. Other analysts agree that the government probably has some broad target range around this area. However, they said Lawson would be prepared to see the pound go higher at least in the short term, despite the risk of a loss of export competitiveness and cheaper prices on imports. "If the Bank of England keeps the interest rates as they are, what's to stop it (going higher)," said John Cox, executive director of EBC Amro Bank Ltd, a major operator on the London foreign exchange market. Cox estimates that the Bank of England has been active selling sterling over the past few days, despite the lack of general market talk of such intervention, and this has helped keep it below 1.60 dlrs. The pound rose to 1.5870 dlrs from 1.5764 yesterday and 1.5400 February 23, the day after the Paris meeting. But Cox says the government must be worried with sterling heading toward 2.95 marks and would be very concerned if it holds around these levels. He warned the Bank may run the risk of missing the interest rate boat. "If rates don't come down, the market will say they ought to have come down and will sell sterling," he said. Most dealers agree there is a good deal of "hot money" being invested in sterling, money simply attracted by high overnight or one-week rates, which could flow out at equally short notice. However, the authorities will hope that at least a proportion of the buying reflects long-term investment. "The last thing they want to do is reduce them (rates) and have to jack them back up again," said Richard Jeffrey, economist at brokerage house Hoare Govett Ltd. He said a half point cut would ensure continued support for sterling, at least in the near term. However, most analysts are still looking for a full point about March 17, Budget Day. The Bank must hold out until it sees the reaction to the Budget, said Temperton. The Budget is widely forecast to be a vote winner in the run-up to a general election, the major factor behind current bullishness in the government bond and currency markets. "Lawson wants to delay a cut in base rates until the budget. He wants it to be crowned with the glory of an interest rate cut," said Ian Harwood, economist at Warburg Securities, the equities arm of Mercury International Group. Speculation a clearing bank might break ranks and lead the way lower were confounded today. There was excitement a fall in the weekly Treasury Bill rate to 9.7 pct from 10.2 pct last Friday might mean the Bank had changed its mind. This followed the imposition of penal lending rates of 11 3/4 pct on the discount houses yesterday, and was the lowest since base rates were at 10 pct, early last October. However, with this Bill rate pertaining to three-months money, banking sources said the market could not take the cut as a guide to the Bank's intentions on short term rates.  
HONG KONG BANKS LEAVE INTEREST RATES UNCHANGED. The Hong Kong Association of Banks said it decided to leave interest rates unchanged at today's regular weekly meeting. Current rates are 1-3/4 pct for savings accounts, 24-hours, seven-day call, one-week and two-weeks. One-month is 2-1/4 pct, two-months 2-1/2 pct, three- and six-months are both three pct, nine-months 3-1/4 pct and 12-months 3-3/4 pct. Prime rate is six pct.  
GERMAN GOVERNMENT NEEDS SEEN RAISING BOND YIELDS. Increased federal government borrowing needs and a growing unwillingness by foreign investors to buy mark assets could push yields in German public authority bonds higher this year, bond market sources say. "At the moment we have a sideways movement in the short-term rates. But how rates move in the long end will depend strongly on foreigners," one portfolio manager for a large securities investment house in Frankfurt said. The sources also said the government had already stepped up its borrowing programme in anticipation on increased needs. Friday's loan stock was the third this year already, the sources noted. It carried a 10-year maturity, a coupon of six pct and price of 100-1/4 to yield 5.97 pct at issue. This compared with the last issue which had a 5-3/4 pct coupon priced at 99-3/4 pct for a yield of 5.75 pct. But dealers said the terms were not enough to attract foreign investors, and the federal government would have to push yields higher in future if it wanted to borrow again soon. Sources noted federal government issues had also increased in size, with the introduction of a four billion mark volume only starting last May. One finance ministry economist said "It isn't more. It's just the size (of each bond) which has increased." He added conditions in the capital market currently remained fairly favourable for raising new debt. Until recently, federal issues sold very strongly abroad, with up to 90 pct of some being placed with foreign investors. With the recent stabilisation of the U.S. Dollar, however, foreign investors have begun to back away from the market, as hopes of further currency gains in marks diminish. Sources said the government has may have already stepped up its borrowing, having raised more than 18 billion marks. The government made net borrowings of 23 billion marks in 1986. But Bundesbank statistics showed that net borrowing through bonds was 26.6 billion. The sources said this indicated a move by the government out of other types of debt to gain access to foreign funds through the more acceptable loan stock form. Although new credit needs were partly inflated by a large amount of issues maturing recently, other factors, including the government's tax reduction program, would also reduce income next year. "The problem here will be the tax reform," the portfolio manager said. He added that the government's cut in its top income tax rate to 53 pct from 56 pct in 1988 would make it difficult for the government to reduce borrowings. The sources said the government would fall far short of covering all of its 40 billion marks in lost revenue from the tax reform by making expenditure cuts and would be forced to fall back on debt markets in one form or the other. The portfolio manager noted that besides the three federal government loan stocks so far this year, it has also fallen back twice to raise a total 6.43 billion marks through the issue of fixed-rate medium-term "Kassenobligation" notes. A finance ministry economist said the government did not expect to have any trouble keeping to its plan to borrow only a net 22.3 billion marks this year. Though many sources agreed, they added that the trend would probably not continue next year as the further tax cuts come into effect. "I would expect the efforts for a further tax reform would mean government borrowing will increase," the manager said. Bond prices last week were slightly firmer on balance, with the Bundesbank's public authority bond yield calculation falling to 5.64 pct on Friday from 5.66 a week earlier. But sources said foreign demand for the new federal government loan stock was slack, as sentiment grows that the dollar may now rise against the mark. "The demand wasn't so good," a dealer for a German bank in London said. The dollar's recent slight appreciation against the mark even meant that foreign investors have sold mark bonds recently, some dealers said.  
NATIONAL WESTMINSTER BANK SAYS IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT..  NATIONAL WESTMINSTER BANK SAYS IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.  
NATIONAL WESTMINSTER BANK CUTS BASE RATE. National Westminster Bank Plc said it has cut its base lending rate  0.5 percentage points to 10.5 pct today. National Westminster said that it was responding to general easing in money market rates. Its move followed a signal from the Bank of England earlier this afternoon that it would endorse a half point cut in the base rate, a surprise move following its strong signals last week that such a move would be premature. However, since then the pound has continued to gain strongly.  
NATIONAL WESTMINSTER BANK CUTS BASE RATE. National Westminster Bank Plc said it has cut its base lending rate  0.5 percentage points to 10.5 pct today. National Westminster said it was responding to general easing in money market rates. Its move followed a signal from the Bank of England earlier this afternoon that it would endorse a half point cut in the base rate, a surprise move following its strong signals last week that such a move would be premature. However, since then the pound has continued to gain strongly.  
BARCLAYS BANK SAID IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT..  BARCLAYS BANK SAID IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.  
MIDLAND BANK SAID IT CUTTING ITS BASE RATE TO 10.5 PCT FROM 11 PCT..  MIDLAND BANK SAID IT CUTTING ITS BASE RATE TO 10.5 PCT FROM 11 PCT.  
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT. Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow.  
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT. Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow. The base rate reductions came after the Bank of England cut its dealing rates this morning in a signal to the money markets that it would not resist a half percentage point drop in bank base lending rates, market sources said. Until the end of last week, the central was holding out staunchly against market pressures for lower rates in an apparent effort to preserve the expected rate cuts for around the time of the government's annual Budget on March 17. Sterling remained firm around 1.59 dlrs compared with its close here on Friday at 1.5865 dlrs.  
U.K. ISSUES ONE BILLION STG BOND TRANCHE. The Bank of England said it was taking onto its books a further one billion stg tranche of 8-3/4 pct Treasury Loan stock due 1997, payable 40 stg pct on application. The stock was issued to the Bank at 96.50 stg pct and will be available for dealings from March 11, with the remainder of the amount payable on May 5. The Bank said the bonds would yield 9.28 pct at the issue price and would be free of tax to residents overseas. The issue would be designated 8-3/4 pct Treasury Loan 1997 "B."  A further 100 mln stg was reserved for the National Debt Commissioners. The market dropped by up to 1/2 point following the Bank's announcement, with the Treasury 13-1/2 pct stock due 2004/08 quoted one full point lower at 134-12/32 stg pct around 20 minutes after the news. Dealers said the announcement had to be viewed against the backdrop of intense pressure for lower U.K. Interest rates which had built up over the past two weeks as a result of sterling's strength. The Bank this morning finally signalled it was prepared to see lower rates and U.K. Clearing banks this afternoon announced cuts in their base lending rates to 10.5 pct from 11 pct. The Bank had initially been reluctant to countenance a rate cut because, dealers said, the authorities had wished to delay a reduction until around the time of the U.K. Budget on March 17, thereby preserving the full impact of Chancellor of the Exchequer Nigel Lawson's package of measures. However, in the face of sterling's apparently inexorable climb, the authorities today decided to cede to pressure and allow a half-point cut. Today's one billion stg tap issue was viewed by the market as a move by the Bank to eradicate hopes for a further early rate cut which might arise as a result of strong sterling. Most market participants believe that Lawson will now foster a further half point interest rate reduction at the time of the budget, although one or two said they would not be surprised to see a full point decline at this stage. Dealers noted that as part of the authorities' attempts last week to ease pressure for lower rates, the Bank had issued a one billion stg tap stock with a view to subduing the Government bond market. To the surprise of most participants, the issue was sold out within hours of becoming available for trading and the market pushed on to register further sharp gains. Dealers said that at this stage it seemed unlikely that the issue announced today would be absorbed by the market as rapidly as last week's. However, they noted that although sterling had edged down from its highs following the base rate cut, it had still closed on a trade-weighted basis at 72.4, well ahead of Friday's final 71.8 and only just beneath the peak of 72.5 touched at 1300 GMT.  
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT. Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow. The base rate reductions came after the Bank of England cut its dealing rates this morning in a signal to the money markets that it would not resist a half percentage point drop in bank base lending rates, market sources said. Until the end of last week, the central was holding out staunchly against market pressures for lower rates in an apparent effort to preserve the expected rate cuts for around the time of the government's annual Budget on March 17. Sterling remained firm around 1.59 dlrs compared with its close here on Friday at 1.5865 dlrs.  
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT. Lloyds Bank Plc <LLOY.L> said it is cutting its base lending rate to 10.5 pct from 11 pct, effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc <NWBL.L> led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central bank's surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17.  
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT. Lloyds Bank Plc <LLOY.L> said it is cutting its base lending rate to 10.5 pct from 11 pct, effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc <NWBL.L> led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central bank's surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17.  
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT. Lloyds Bank Plc said it is cutting its base lending rate to 10.5 pct from 11 pct, effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central bank's surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17.  
FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.37 PCT FROM 7.69 PCT - OFFICIAL.  FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.37 PCT FROM 7.69 PCT - OFFICIAL  
WORLD BANK TO BRING BORROWING FORWARD THIS YEAR. The World Bank intends to bring borrowing forward into the first half of 1987 because it expects global interest rates to rise by year end, World Bank vice president and treasurer Eugene Rotberg said. He told a news conference that rates in the U.S., Japan, West Germany and Switzerland were near their lows. "The weight of opinion is (that in a year from now) there is a higher probability there will be one pct higher than one pct lower interest rates," he said. The World Bank had not issued floating rate notes so far this year because of the expectation of higher interest rates. The policy of the World Bank was to maintain liquidity at a level that gave the bank flexibility to decide when, where and how much to borrow, Rotberg said. Cash in hand was now about 50 pct of the next three years' anticipated net requirement and comprised 25 pct of outstanding debt and 66 pct of its debt maturing within five years. Although the World Bank had pioneered the swap market, it did not intend to launch new financial instruments just for the sake of innovation, Rotberg said. Of a total of 74.5 billion dlrs debt outstanding, only some eight billion had been swapped into another currency. Many recent innovations were either unfair to investors or unfair to borrowers. Until the World Bank was confident that this was not the case, it would not adopt new instruments. The World Bank would raise 90 pct of the funds needed over the next year with methods used before, Rotberg said. However, for some 10 pct of new requirements the bank would try out new instruments such as bonds with warrants. The World Bank had publicly offered 60 bonds in Germany since the first issue was launched in 1959, he said.   
CITIBANK FOLLOWS U.K. BASE RATE CUT TO 10.5 PCT. <Citibank NA> said it has cut its British base lending rate to 10.5 pct from 11 pct, with effect from tomorrow. This move follows similar cuts by four major British clearing banks, led by National Westminster Bank Plc <NWBL.L>. Lower rates were signalled by the Bank of England this morning in an attempt to curb recent upward pressure on the pound, market sources said.  
U.S. BILL AUCTIONS SEEN AT 5.63-65, 5.59-61 PCT. The U.S. Treasury's weekly auction is expected to produce an average rate of 5.63-65 pct for three-month bills and one of 5.59-61 pct for six-month bills, dealers said. Shortly before auction time on the new bills, the rate on the outstanding three-month bills was unchanged at 5.64 pct bid, while the rate on the six-month bills was one basis point higher at 5.68 pct bid.  
PRIMARY EUROSTERLING MARKET BOOMS DESPITE RATE CUT. Two new eurosterling bonds were launched today, making a total of 10 new deals in the sector so far this month, as borrowers rush to cash in on a bull sterling market fueled by the strength of the pound and pre-budget euphoria. The Bank of England finally gave way to a 1/2 point cut in banks' base lending rates earlier today, but dealers said this had been largely discounted and was not likely to detract from the current popularity of sterling-denominated investments. "Sterling, in any shape or form, is flavor of the month and we're set to see many more eurosterling deals," one dealer said. Today's new eurosterling bonds were a 10-year, 100 mln stg deal for Sweden at 9-1/2 pct and priced at 101-1/4 pct, lead by Baring Brothers and Co Ltd and a 14 year 60 mln stg convertible deal for Storehouse Plc launched by SBCI International Ltd. "We thought we saw a proverbial flood of new deals with the 14 we had last month but it seems March will beat February hands down with 10 already," one eurosterling specialist said. "Optically, psychologically, these single figures are much more attractive for the borrower. Eurosterling looks like a cheap and attractive way to raise your money," he added. This accounts for the wide variety of borrowers who have tapped the sector recently, ranging from sovereigns such as the Kingdom of Sweden today, continental banks including Commerzbank and Deutsche Bank and British corporations. Another U.K. Merchant bank analyst noted that the current vogue for eurosterling enabled several corporate borrowers last month to offer paper priced below comparative gilt yields. A Storehouse official confirmed that the issue was aimed at Swiss and German investors who were showing good interest. This is the first entry into the long term international capital markets by Storehouse, British designer Terence Conran's retail conglomerate which incorporates U.K. Chain stores Mothercare, British Home Stores and Habitat. "We have been considering the move for quite some time now and the current strength of the eurosterling sector provided the perfect opportunity and spur for us to finally tap the market," Lance Moir, corporate treasurer at Storehouse Plc told Reuters.   
BANK BOARD SAYS MORTGAGE RATES DOWN IN FEBRUARY. The Federal Home Loan Bank Board said interest rates on both fixed rate and adjustable rate home mortgage loans were down substantially in early February. The bank board said the average effective commitment rate for fixed mortgages with a maturity of at least 15 years for new home purchases dropped to 9.54 pct in early February, a 30 basis point decline from early January. The commitment rate on adjustable rate mortgages declined by 16 basis points in the same period bringing the average rate to 8.5 pct, the bank board said. The average effective interest rate on all loans closed by major lenders declined 27 basis points from early January to 9.26 pct in early February, the lowest rate since March 1978, the bank board said. The average effective rate for fixed mortgages was was 9.51 pct, down 30 basis points from the early January level. The average effective rate for adjustable rate mortgages declined 22 basis points to 8.61 pct, the bank board said.  
U.S. SELLS 3-MO BILLS AT 5.63 PCT, STOP 5.64 PCT, 6-MO 5.59 PCT, STOP 5.60 PCT.  U.S. SELLS 3-MO BILLS AT 5.63 PCT, STOP 5.64 PCT, 6-MO 5.59 PCT, STOP 5.60 PCT  
U.S. BILL AUCTION RATES AVERAGE 5.63, 5.59 PCT. The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.63 pct, with a 5.59 pct rate on six-month bills. These rates compared with averages of 5.47 pct for the three- and 5.51 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 5.81 pct. Accepted bids ranges from 5.61 pct to 5.64 pct and 29 pct of the bids at the high, or stopout rate, were taken. For six months, the yield was 5.85 pct and the bids ranges from 5.56 pct to 5.60 pct with 30 pct of the bids accepted. The Treasury said it received 30.9 billion dlrs of bids for the three-month bills, including 1.0 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids, including 2.2 billion dlrs from the Federal Reserve and 9.1 mln dlrs from foreign and international monetary authorities. Some 25.7 billion dlrs in bids for six-month bills were received, including 785 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs, including 1.9 billion dlrs from the Fed and 942 mln dlrs from foreign and international authorities. The average price for the three-month bills was 98.577 and prices ranged from 98.574 to 98.582.  The average price for the six-months bills was 97.174, and prices ranged from 97.169 to 97.189. The average yield on the three-month bills was the highest since 5.66 pct on Feb 17. The average yield on the six-month bills was the highest since 5.70 pct on Feb 17.  
Sumita says little room for Bank of Japan to further ease credit policy.  Sumita says little room for Bank of Japan to further ease credit policy  
SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY. Bank of Japan governor Satoshi Sumita said there is little room left for the central bank to further ease its credit policy as interest rates levels are now approaching their lower limit. "The government should instead seek ways of making the best use of its fiscal policy," he told a press conference. His remarks were concerned with a comprehensive economic stimulative package the government plans to adopt in the coming days. At the recent talks among the six major industrialised nations in Paris, Japan promised to work out a comprehensive economic package to boost domestic demand, which in turn would help increase its imports and reduce its trade surplus. Sumita also said the economy will show a gradual upturn in the second half of the year if the yen remains stable. He said there is caution in the foreign exchange market against a further rise of the yen and mark and this explains the recent stability in the currency markets. Conflicting economic indicators from the U.S. Have also been dampening market activity, he added.  
Belgium cuts discount rate to 8.0 pct from 8.50 - official.  Belgium cuts discount rate to 8.0 pct from 8.50 - official  
SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY. Bank of Japan governor Satoshi Sumita said there is little room left for the central bank to further ease its credit policy as interest rates levels are now approaching their lower limit. "The government should instead seek ways of making the best use of its fiscal policy," he told a press conference. His remarks were concerned with a comprehensive economic stimulative package the government plans to adopt in the coming days. At the recent talks among the six major industrialised nations in Paris, Japan promised to work out a comprehensive economic package to boost domestic demand, which in turn would help increase its imports and reduce its trade surplus. Sumita also said the economy will show a gradual upturn in the second half of the year if the yen remains stable. He said there is caution in the foreign exchange market against a further rise of the yen and mark and this explains the recent stability in the currency markets. Conflicting economic indicators from the U.S. Have also been dampening market activity, he added.  
U.S. URGES BANKS TO WEIGH PHILIPPINE DEBT PLAN. The U.S. is urging reluctant commercial banks to seriously consider accepting a novel Philippine proposal for paying its interest bill and believes the innovation is fully consistent with its Third World debt strategy, a Reagan administration official said. The official's comments also suggest that debtors' pleas for interest rate concessions should be treated much more seriously by the commercial banks, in cases where developing nations are carrying out genuine economic reforms. In addition, he signaled that the banks might want to reconsider the idea of a "megabank," where Third World debt would be pooled, and suggested the administration would support such a plan, even though it was not formally proposing it. At the same time, however, the official expressed reservations that such a scheme would ever get off the ground. The Philippine proposal, together with Argentine suggestions that "exit bonds" be issued to end the troublesome role of small banks in the debt strategy, would help to underpin the flagging role of private banks within the plan, the official said in an interview with Reuters. "All of these things would fit within the definition of our initiative as we have asked it and we think any novel and unique approach such as those should be considered," said the official, who asked not to be named. In October 1985, Washington outlined a debt crisis strategy under which commercial banks and multilateral institutions such as the World Bank and the International Monetary Fund (IMF) were urged to step up lending to major debtors nations. In return, America called on the debtor countries to enact economic reforms promoting inflation-free economic growth. "The multilaterals have been performing well, the debtors have been performing well," said the official. But he admitted that the largest Third World debtor, Brazil, was clearly an exception. The official, who played a key role in developing the U.S. Debt strategy and is an administration economic policymaker, also said these new ideas would help commercial banks improve their role in resolving the Third World debt crisis. "We called at the very beginning for the bank syndications to find procedures or processes whereby they could operate more effectively," the official said. Among those ideas, the official said, were suggestions that commercial banks create a "megabank" which could swap Third World debt paper for so-called "exit bonds" for banks like regional American or European institutions. Such bonds in theory would rid these banks of the need to lend money to their former debtors every time a new money package was assembled, and has been suggested by Argentina in its current negotiations for a new loan of 2.15 billion dlrs. He emphasised that the "megabank" was not an administration plan but "something some people have suggested." Other U.S. Officials said Japanese commercial banks are examining the creation of a consortium bank to assume Third World debt. This plan, actively under consideration, would differ slightly from the one the official described. But the official expressed deep misgivings that such a plan would work in the United States. "If the banks thought that that was a suitable way to go, fine. I don't think they ever will." He pointed out that banks would swap their Third World loans for capital in the megabank and might then be reluctant to provide new money to debtors through the new institution. Meanwhile, the official praised the Philippine plan under which it would make interest payments on its debt in cash at no more than 5/8 pct above Libor. "The Philippine proposal is very interesting, it's quite unique and I don't think it's something that should be categorically rejected out of hand," the official said. Banks which found this level unacceptably low would be offered an alternative of Libor payments in cash and a margin above that of one pct in the form of Philippine Investment Notes. These tradeable, dollar-denominated notes would have a six-year life and if banks swapped them for cash before maturity, the country would guarantee a payment of 7/8 point over Libor. Until now, bankers have criticised these spreads as far too low. The talks, now in their second week, are aimed at stretching out repayments of 3.6 billion dlrs of debt and granting easier terms on 5.8 billion of already rescheduled debt. The country, which has enjoyed strong political support in Washington since Corazon Aquino came to power early last year, owes an overall 27.8 billion dlrs of debt. But the official denied the plan amounts to interest rate capitalisation, a development until now unacceptable to the banks. "It's no more interest rate capitalisation than if you have a write down in the spread over Libor from what existed before," the official said in comments suggesting some ought to be granted the rate concessions they seek. "Some people argue that (cutting the spread) is debt forgiveness... What it really is is narrowing the spread on new money," he added. He said the U.S. Debt strategy is sufficiently broad as an initiative to include plans like the Philippines'.  
JAMAICA AGREES DRAFT BANK DEBT RESCHEDULING. Jamaica agreed in principle with its bank advisory committee on a rescheduling of 181 mln dlrs of foreign commercial bank debt falling due between 1987 and 1989, the Jamaican Information Service said. Repayments on the debt will be stretched out over 12 years with 8-1/2 years' grace at 1-1/4 percentage points over the London Interbank Offered Rate, Libor. The margin on previously restructured debt also will be cut to 1-1/4 point from 2-1/2. The package should save Jamaica about 3.3 mln dlrs a year. Prime Minister Edward Seaga, who led the Jamaican delegation, called the terms very favourable to his country. The agreement in principle with the bank advisory committee led by the Bank of Nova Scotia <BNO.TO> comes five days after Jamaica successfully concluded a 125.5 mln dlr rescheduling accord with the Paris Club of creditor nations. That pact in turn followed the International Monetary Fund (IMF)'s approval on March 5 of a 85 mln special drawing rights standby arrangement and a 40.9 mln sdr drawing under the compensatory financing facility. Of Jamaica's foreign debt of 3.3 billion dlrs only 12 pct is owed to commercial banks, and Seaga yesterday reaffirmed the government's policy of not seeking new bank loans. REUTER...^M  
BRAZIL'S GROS TO MEET BANKS ON TRADE LINE ISSUE. Brazil's central bank governor Francisco Gros will meet senior commercial bankers here today in a new attempt to defuse the anger generated by the country's unilateral suspension of interest payments on 68 billion dlrs of foreign commercial bank debt, bankers said. Gros will meet representatives of Citibank, the head of Brazil's bank advisory committee, and of co-heads Morgan Guaranty Trust Co and Lloyds Bank Plc. High on the agenda will be banks' complaints about Brazil's accompanying freeze on some 15 billion dlrs of short-term trade and interbank lines, the bankers said. Brazil's several hundred creditor banks worldwide agreed last March to extend the credit lines until March 31, 1987, as part of a 31 billion dlr financing package. Bankers said the looming expiry of this commitment, coupled with Brazil's freeze, raised a spate of technical and legal questions that the banks want to discuss with Gros. They said they face problems because of the freeze requirement that any payment due to be made by a Brazilian bank under the trade facility must be deposited instead with the central bank. This means foreign bankers cannot easily switch their credit lines from one borrower to another. The requirement to deposit with the central bank has also meant Brazilian banks have been able to negotiate lower interest-rate spreads, because foreign banks would rather accept a reduced margin than see their money deposited with the central bank. "It's caused a lot of ill-will with the banking community," one banker said. Gros is also expected to brief the banks on the results of a 10-day tour of Europe and Japan that he and finance minister Dilson Funaro have just completed to seek official support for Brazil's debt stance.  
BANKERS TRUST CO RAISES BROKER LOAN RATE. Bankers Trust Co said it raised its broker loan rate to 7-1/4 pct from seven pct, effective immediately. U.S. Trust Co, which also quotes its broker loan rate publicly, is posting a 7-1/2 pct rate.  
NATIONAL SAVINGS MOVE POINTS TO LOWER U.K. RATES. U.K. Interest rates look set to move lower even after Monday's half-point cut in bank base rates to 10-1/2 pct, analysts said, citing as evidence the suspension of a British National Savings issue yesterday. The Department of National Savings, effectively a Treasury Department unit, yesterday suspended its 32nd issue, launched in October and paying a high tax-free 8-3/4 pct on five-year private investments between 25 and 5,000 stg. A spokesman said the suspension was just a reaction to yields on national savings bonds being way out of line with the rest of the market. The move was followed by a surprise sell-out within minutes today of a Bank of England one-billion stg tap issue, the second such issue in as many weeks, analysts noted. They said the near-instant sale of the entire new gilts issue, for which the Bank of England had required a high 40 pct downpayment, was clear evidence that the market thought rates had to drop sooner rather than later. The sale of the tranche of 8-3/4 pct treasury bonds due 1997 occurred in an active, bullish gilts market as downward pressure on money market rates remained intact, with the bellwether three-month interbank rate down 1/8 point at 10-9-7/8 pct. It coincided with another strong sterling rally which pushed the pound to four-year highs against the dollar. "That government stock disappeared very quickly indeed," said Stephen Lewis, head of economic research at stockbrokers Phillips and Drew; "It is an indication that the market believes rates are going to fall further ... At least by a half-point immediately after the budget (on March 17), and some people hope for more." Stockbrokers James Capel said in a comment the move by the National Savings Department was "of considerable significance." It said, "the real message ... Is that the decks are being quickly cleared so as to facilitate a speedy decision by the building societies to cut their rates when the inevitable cut in bank base rates to 10 pct materialises." Building societies have said a drop in bank base rates would normally have to exceed half a point to give rise to a reduction in mortgage lending rates. Lewis of Phillips and Drew said he too believed the National Savings issue suspension may reflect new U.K. Treasury policy to point building societies towards a mortgage rate cut. "National Savings has been competing too effectively with the building societies of late. Building society income has been depressed in recent months," he said. He and other analysts said Chancellor of the Exchequer Nigel Lawson was keen to see mortgage rates fall to keep a lid on U.K. Inflation. Underlying upward pressure on prices is stronger in Britain than in most other Western economies with inflation seen rising well above four pct this year and above five pct in 1988 after last year's 3.7 pct. Emphasising the impact of mortgage rates on consumer prices, Lewis said a one-point cut in building society rates would reduce inflation in Britain by about 0.4 pct. But Lewis and others noted that building societies had been complaining to the government about intense competition from National Savings, which they argued reduced the scope for early mortgage rate cuts. "The Chancellor need not be worried about losing some PSBR funding from National Savings, but he must be taking the building societies' criticism to heart. It looks like the National Savings move reflects this," one senior dealer said. A Savings Department spokesman refused to comment on this interpretation, saying the suspension of the issue was merely a reaction to the recent fall in U.K. Interest rates, which had pushed yields on national savings bonds way out of line with the rest of the market. "We are not politically motivated ... Funding was just becoming too expensive and we don't need all that money," he told Reuters, adding the department had suspended issues at least twice in the past, when offered interest rates were above or below market rates. He said demand for the issue had risen sharply of late as U.K. Money market rates continued their steady decline and income was threatening to overshoot an unofficial three billion stg target set for fiscal 1986 ending March 31. In the first 10 months of fiscal 1986, National Saving's contribution to government funding totalled 2.72 billion stg, compared with 2.01 billion stg in the same period of the previous year, official figures show. Figures for February, out on Monday, are expected to show a further increase of between 300 and 400 mln stg, pushing the total for 11 months above target, government officials said.  
U.K. BANKS OFFER FIXED-RATE MORTGAGES AT 10.2 PCT. Two major U.K. Clearing banks announced they will offer a total of 800 mln stg in new mortgages at a fixed interest rate of 10.2 pct for the first three years, below current bank base lending rates of 10.5 pct. Midland Bank Plc <MDBL.L> said it has initially allocated 500 mln stg for home loans at this rate, while Lloyds Bank Plc <LLOY.L> will offer 300 mln stg. Earlier this week, Midland said it would cut its standard rate of mortgage payment to 11.5 pct from April 1, following a half a percentage point reduction in leading banks' base lending rates from 11 pct. Building society and other bank mortgage rates are largely still well above the new base rate level, although last year Lloyds offered a fixed rate of 9.9 pct on certain home loans. A Midland spokesman said his bank calculated that at the current level of 2.7 billion stg, its existing mortgage book accounts for about 5 pct of the total British home loan market. Lloyds said it has 3.6 billion stg in outstanding mortgage loans, but had not estimated its total market share. Among other major clearing banks, Barclays Plc <BCS.L> and National Westminister Bank Plc <NWBL.L> said they had no immediate plans to announce similar fixed rate schemes.  
PHILIPPINE DEBT TALKS DELAYED FOR CONSULTATIONS. Today's debt rescheduling talks between the Philippines government and its bank advisory committee were postponed until Thursday to give the banks more time to consider Manila's novel proposal for paying part of its interest bill in notes instead of cash, bankers said. The committee banks met briefly earlier today and decided that they needed more time in particular to consider a news report which quoted a Reagan Administration official as urging that the proposal be given serious consideration. "The banks felt that this was new information and that further consultation was called for," one banker said. In a despatch yesterday from Washington, Reuters quoted the official as saying Manila's plan to pay some interest with notes that could be converted into equity investments in the Philippines was fully consistent with the Reagan Administration strategy for handling developing country debt. "The Philippine proposal is very interesting, it's quite unique and I don't think it's something that should be categorically rejected out of hand," the official said. Because of the key role the U.S. plays in the debt crisis, foreign banks in particular wanted time to analyze the significance of the policymaker's comments, bankers said.  
CANADA 91-DAY T-BILLS AVERAGE 7.03 PCT, MAKING BANK RATE 7.28 PCT.  CANADA 91-DAY T-BILLS AVERAGE 7.03 PCT, MAKING BANK RATE 7.28 PCT  
CANADIAN IMPERIAL BANK OF COMMERCE CUTS PRIME RATE TO 8.75 PCT FROM 9.25 - TOMORROW.  CANADIAN IMPERIAL BANK OF COMMERCE CUTS PRIME RATE TO 8.75 PCT FROM 9.25 - TOMORROW  
ROYAL BANK OF CANADA LOWERS PRIME RATE TO 8-3/4 PCT, DOWN 1/2.  ROYAL BANK OF CANADA LOWERS PRIME RATE TO 8-3/4 PCT, DOWN 1/2  
OTTAWA SEEKS EXPLANATION OF CREDIT CARD RATES. Minister of State for Finance Tom Hockin said he has asked the Canadian Bankers Association, an industry lobby group, for an explanation of the level of credit card interest rates. Hockin said he hopes to here the association's response on the "important" issue soon. Hockin was responding to questions in the House of Commons about why credit card rates, which run as high as 28 pct per year, remain high when other rates are falling. Today, the Canadian bank rate fell to 7.28 pct from 7.54 pct last week and the Canadian Imperial Bank of Commerce cut its prime rate, effective tomorrow, to 8.75 pct from 9.25 pct.  
TORONTO DOMINION BANK CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT - TOMORROW.  TORONTO DOMINION BANK CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT - TOMORROW  
BANK OF MONTREAL CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE FRIDAY.  BANK OF MONTREAL CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE FRIDAY  
BANK OF NOVA SCOTIA CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE TOMORROW.  BANK OF NOVA SCOTIA CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE TOMORROW  
London - Floating rate note prices open sharply lower, dealers say.  London - Floating rate note prices open sharply lower, dealers say  
Top discount rate at U.K. Bill tender falls to 9.3657 pct.  Top discount rate at U.K. Bill tender falls to 9.3657 pct  
ITALIAN INTERBANK RATE RISES IN FEBRUARY. Italy's average interbank rate rose to a provisional 12.18 pct in February from 12.05 pct in January, figures from the Bank of Italy show. Weighted average rate on bank lending was a provisional 13.78 pct in February compared with 13.83 in January, while average weighted rate paid on deposits eased a provisional 7.49 pct from 7.66 pct. Italy today announced that its official discount rate would be cut to 11.5 pct from 12 pct effective tomorrow.  
SAN PAOLO DI TORINO CUTS PRIME RATE TO 12.50 PCT FROM 13.00 PCT - OFFICIAL.  SAN PAOLO DI TORINO CUTS PRIME RATE TO 12.50 PCT FROM 13.00 PCT - OFFICIAL  
TRADING RANGE LIKELY TO CONTINUE IN DEBT FUTURES. U.S. economic data due out next week is unlikely to hold any surprises that will shake U.S. interest rate futures out of their relatively narrow trading range of the last 3-1/2 months, financial analysts said. "People don't seem to have any firm conviction about the current strength of the economy or about the Federal Reserve doing anything," said Drexel Burnham Lambert analyst Norman Mains. The narrow range trading is also taking its toll on trading volume, he noted. "We've had a decline in activity as recent economic statistics have not greatly changed people's viewpoints on interest rates," Mains said. The data, which has provided not clear-cut view of the economy, coupled with dampened activity in the foreign exchange markets after the Paris initiative has made for "less than ebullient market action," Mains said. He added, however, that Treasury bond futures could be in for a retracement after the recent rise as they are near the top of the trading range. "My view is that the economy remains relatively strong and market participants will see that current prices are unjustified," Mains said. Refco Inc senior vice president Michael Connery also noted that the market is showing very little momentum and lacks retail interest. "All of the movement occurs at the opening," afterwhich volume dwindles and momentum fades, Connery said. Although data during the week was mildly positive for bond prices, the small rise in February producer prices and downward revisions in January retail sales and industrial production were "not real exciting," said Prudential Bache analyst Fred Leiner. "There is no one factor that will push us through the highs at this moment," Leiner said. Next week's revision to fourth quarter U.S. Gross national Product is also likely to be of little interest to the market, said Kleinwort Benson chief financial economist Sam Kahan. Still, forecasts for first quarter GNP could play a role in the direction of bond prices over the next month. Kahan said his early estimate for first quarter growth is around three pct, due largely to a buildup in inventories reflected in the January inventory data Friday, which showed the largest increase since 1979. "The key question will be not whether there is a large increase in first quarter GNP, but whether any increase is sustainable or a one shot deal," Kahan said. He said that a sizable increase in first quarter GNP stemming from an increase in inventories will be a drag on second quarter growth. If that is the case, GNP in the second quarter could ease back to a one to two pct growth rate, Kahan said.  
PHILIPPINES SEES 1987 GOVERNMENT REVENUE UP 26 PCT. Philippine government revenue is expected to rise 26 pct to 99.9 billion pesos this year from 79.1 billion in 1986, Finance Secretary Jaime Ongpin said. In a report to President Corazon Aquino on his department's performance during the year ended February 28, Ongpin said at least 15.9 billion pesos were expected to accrue from new tax reform measures announced last year. He said the goal for official development assistance (ODA) this year is two billion dlrs, adding that aid donors have committed ODA inflows of 1.7 billion dlrs in 1987, up 30 pct from 1.3 billion in 1986. Ongpin said steps planned to provide a sound revenue base included a value added tax (VAT) system due to be introduced in 1988. He gave no other details. He said treasury bill maturities, interest rate levels and the volume of government securities sold to the private sector have improved significantly. "In particular, short-term prime interest rates which had gone over 40 pct in 1985, are now down to less than 10 pct," he said. Ongpin said the government's debt-equity scheme, introduced in August last year, had attracted more than 276 mln dlrs worth of applications, but selective evaluation had resulted in approvals of only 61.8 mln dlrs at end-February. He said his department aims to accelerate its privatisation program and the sale of non-performing assets owned by associates of former President Ferdinand Marcos to achieve a 1987 sales target of four billion pesos which would help finance land reform. Aquino said earlier this month that all the 24 billion pesos the government hopes to raise from the sale of the failed companies will be used to finance the land reform plan. Ongpin also said the government would pursue efforts to obtain 500 mln dlrs in concessional funding for the program from a World Bank-led consultative group of multilateral and bilateral aid donors. The government has said the land reform plan aims to distribute 9.7 mln hectares of land to poor peasants.  
UAE GOVERNMENT PAPER YIELDS UNCHANGED. Yields on certificates of deposit issued by the United Arab Emirates Central Bank were unchanged at 6-1/8 pct, the bank said. The yield applies to maturities of one, two, three and six months.  
ANALYSTS SEE EARLY ONE POINT CUT IN U.K. BASE RATE. British bank base lending rates are likely to fall by as much as one full point to 9-1/2 pct this week following the sharp three billion stg cut in the U.K. Central government borrowing target to four billion stg set in today's 1987 budget, bank analysts said. The analysts described Chancellor of the Exchequer Nigel Lawson's budget as cautious, a quality which currency and money markets had already started to reward. Sterling surged on foreign exchange markets and money market interest rates moved sharply lower as news of the budget measures came through, the analysts said. Lloyds merchant bank chief economist Roger Bootle said he expected base rates to be cut by one full point tomorrow. "This is very much a safety-first budget in order to get interest rates down," he said. Bootle said the money markets had almost entirely discounted such a one point cut, with the key three month interbank rate down to 9-11/16 pct from 9-13/16 last night, and it would be rather conservative for banks to go for a half-point cut now. Midland Bank treasury economist David Simmonds said he, too, expected base rates would be a full point lower by Friday, but this would likely happen via two half-point cuts. "This budget is designed to please both the markets and the electorate. The implications for interest rates are very favourable, we could have a half-point cut tomrorow and another such cut before the end of the week," Simmonds said. Pointing to buoyant U.K. Retail data released yesterday, he said Lawson had done well to resist pressures for a sharp cut in income tax rates at the expense of a lower borrowing target. "There is no real need to boost private consumption," he said. National Westminster Bank chief economist David Kern said the lower borrowing target set in the budget had increased the likelihood of an early one-point base rate cut. Kern said the budget would have to be analysed carefully, in particular to see how exactly Lawson planned to achieve the sharper than expected borrowing target cut, before a one-point base rate cut could be implemented. But providing the budget small-print was convincing, "and I suspect it will be, it is entirely possible that we see one point off base rates by the end of this week," Kern said. Bootle of Lloyds said the expected base rate cut would pave the way for an early one-point cut in mortgage lending rates. This would help achieve Lawson's lower than expected consumer price inflation target of four pct at end-1987, he said. U.K. Base rates were cut last week to 10-1/2 pct from 11 pct after sustained pressure from the foreign exchange, money and government bonds (gilts) markets. But building societies said they would not cut lending rates until base rates had fallen by one full point.  
U.S. FHL BANKS SETS 6.70 PCT, 7.10 PCT, 7.65 PCT RATES ON 2.55 BILLION DLR OFFER.  U.S. FHL BANKS SETS 6.70 PCT, 7.10 PCT, 7.65 PCT RATES ON 2.55 BILLION DLR OFFER  
U.S. FHL BANKS SETS RATES ON DEBT OFFERING. The Office of Finance, Federal Home Loan Banks, said it set rates on today's debt offering of 6.70 pct on its 1.11 billion dlr issue, 7.10 pct on a 1.065 billion dlr issue and 7.65 pct on a 375 mln dlr issue. It said the issues, which are for settlement March 25, mature March 26, 1990, March 25, 1992 and March 25, 1997, respectively. The office said telephone confirmation of allotments must be received by 1500 hrs EST today and that secondary trading will begin at 0930 hrs EST tomorrow.  
LAWSON EXPECTS INTEREST RATE FALL SOON. U.K. Chancellor of the Exchequer Nigel Lawson said he expected British interest rates to fall soon in response to his fiscal 1987/88 budget, but he did not say by how much. "I would be very surprised if there is not a very early further fall in interest rates," Lawson said in a radio interview. Analysts said they foresaw U.K. Base rates falling as early as today by as much as one full percentage point after Lawson's announcement yesterday that the public sector borrowing requirement in fiscal 1987/88 and 1988/89 was to fall to 1.0 pct of GDP, or some four billion stg. British banks' base lending rates fell a half percentage point on March 9 to the current 10.5 pct.  
THAI BANKS WEIGH NEW INTEREST RATE CUT. Officials of five Thai commercial banks are expected to meet tomorrow to seek agreement on cutting interest rates, banking sources said. They said they expect Thai banks to opt for a cut to spur domestic loan demand to help reduce persistent high liquidity on the money market. Many bankers have been urging an average half percentage point cut in deposit rates and a one point cut in lending rates, they said. Six major Thai major banks reduced minimum loan and overdraft rates by 0.50 to 0.75 percentage point on February 16 but the move has not substantially increased loan demand, the sources said. Excess liquidity has been hitting bank profits since early last year despite five interest rate cuts in 1986. The current gross 7.25 pct interest rate for one-year fixed bank deposit and the 11.5 pct minimum loan rate are the lowest in a decade. Bankers said the Thai banking system is saddled with about 40 to 50 billion baht of surplus funds which have created problems for many banks in managing their money effectively. Profits of many Thai banks fell sharply last year partly because of a mismatch of loan demand and bank deposit growth. The Bank of Thailand estimated overall lending by the Thai banking system grew 3.8 pct in 1986 against a 12 pct expansion in bank deposits. Reports of a possible new round of interest rate cuts have further buoyed the Thai stock market this week. The Securities Exchange of Thailand (SET) Index on Monday recorded its biggest daily advance in recent years, shooting up 4.57 points to a new seven-year high of 223.02. Brokers and market analysts said Thai stocks will register more gains as long as liquidity remains in the money market. Thai and foreign bankers said the liquidity problem will grow if the Bank of Thailand does not extend permission for local banks to hold foreign exchange positions up to 40 pct of bank capital. If the regulation is not extended beyond its April 3 expiry date, many commercial banks will have to reduce foreign exchange holdings to a maximum 20 pct. Bankers said such that could add another five billion baht of surplus funds to the local money market.  
BANK OF ENGLAND SIGNALS HALF POINT CUT IN SHORT TERM RATES - DEALERS.  BANK OF ENGLAND SIGNALS HALF POINT CUT IN SHORT TERM RATES - DEALERS  
BANK OF ENGLAND SAID IT INVITED BORROWINGS AT 10 PCT LATER TODAY.  BANK OF ENGLAND SAID IT INVITED BORROWINGS AT 10 PCT LATER TODAY  
BARCLAYS BANK SAID ITS CUTTING BASE LENDING RATE TO 10 PCT PCT FROM 10.5 PCT..  BARCLAYS BANK SAID ITS CUTTING BASE LENDING RATE TO 10 PCT PCT FROM 10.5 PCT.  
NATIONAL WESTMINSTER BANK SAID IT CUTTING BASE RATE TO 10 PCT FROM 10.5 PCT..  NATIONAL WESTMINSTER BANK SAID IT CUTTING BASE RATE TO 10 PCT FROM 10.5 PCT.  
BANK OF ENGLAND INVITES BORROWING AT 10 PCT. The Bank of England said it had invited those discount houses wishing to use borrowing facilities to do so at 1430 GMT today at a rate of 10 pct for 14 days. This compares with the Bank's present band one dealing rate of 10-3/8 pct. The Bank of England's announcement was quickly followed by Barclays Bank and National Westminster Bank which announced a half-point cut in their base rates to 10 pct from 10-1/2 pct. Dealers said the lowering in base rates had been widely expected following yesterday's U.K. Budget in which Chancellor of the Exchequer Nigel Lawson announced a three billion stg cut in the Government's public sector borrowing target for 1987/88 to four billion stg. Many in the market had expected a full one point cut in base rates today but some were not surprised by the authorities' caution, dealers added.  
LAWSON SAYS HE FAVOURS GRADUAL APPROACH TO CUTS IN U.K. INTEREST RATES.  LAWSON SAYS HE FAVOURS GRADUAL APPROACH TO CUTS IN U.K. INTEREST RATES  
WEST GERMAN BANKS SLOWLY CUTTING KEY SAVINGS RATES. West German commercial banks are cautiously cutting key savings and lending rates, banking sources said. The cuts follow nearly two months after the Bundesbank reduced leading interest rates, far longer than the usual interim period. A Deutsche Bank AG <DBKG.F> spokesman said it is cutting leading savings rate for private customers on a regional basis by 0.5 percentage points to two pct. Dresdner Bank AG <DRSD.F> and Commerzbank AG <CBKG.F> have initiated similar moves. Bank fuer Gemeinwirtschaft AG <BKFG.F> cut rates 0.5 pct generally. The delay was partly due to commercial banks' desire to gauge customer reaction to a similar move by regional savings banks. A fall in customer savings because of lower rates could reduce cheap refinancing available to banks, forcing them to draw down relatively expensive funds from other sources, one economist at the German Banking Association said. But the volume of savings funds may not be substantially undercut by lower savings rates because many customers are parking funds in savings accounts in the hope they can reinvest them at higher yields in the future, he said. He said this may conflict with Bundesbank aims to move more funds from relatively short-term deposits to longer-dated securities to reduce strong growth in its central bank money supply aggregate. The aggregate showed annualized growth of a provisional 7.5 pct in February against the fourth quarter of last year, unchanged from January. The growth rate was outside the expanded target range of three to six pct. Few banks have so far reduced lending rates to private customers, though lending rates for corporate customers are beginning to decline.  
BANK OF ENGLAND LENDS ONE BILLION STG AT 10 PCT. The Bank of England said it had lent one billion stg to the discount market for fourteen days at 10 pct. This brings the Banks total help today to some 1.34 billion stg and satisfies the estimated shortage in the system today which it had earlier estimated at 1.3 billion stg. The Bank's announcement this morning that it was willing to lend two-week money at 10 pct was interpreted by the market as a sanction for lower U.K. Base lending rates. The U.K. Clearing banks swiftly took this up, cutting their base rates by a half-point to 10 pct. At midday, the central bank lowered its money market dealing rates by the same amount.  
HOUSE SUBCOMMITTEE VOTES CREDIT CARD RATE CAP. A House Banking subcommittee has approved legislation to limit the interest rates charged by banks and other credit card issuers. The Consumer Affairs and Coinage subcommittee bill would limit credit card interest rates at eight percentage points above the yield on one-year Treasury securities. If in effect now, the bill would limit credit card rates to 13.8 pct compared to a nation-wide average of 18 pct, the subcommittee said. The bill now goes to the full House Banking committee for further action.  
VOLATILITY LIKELY TO REMAIN LOW IN DEBT FUTURES. Financial analysts see little chance that U.S. interest rate futures will break out of their narrow ranges and low volatility during the remainder of the week. "We got a little volatility Wednesday," said Staley Commodities International analyst Jerome Lacey. "But for the moment we're still in a trading range." Even unexpected developments concerning the growth of the U.S. economy may not be enough to spur the market out of its sluggish state, the analysts said. "It (the bond market) has not yet demonstrated that it can break out of its very low volatility," said Carroll McEntee and McGinley analyst Denis Karnosky. "It needs something, but it's not going to be news about the economy," he said. Karnosky said that the bond market will possibly break out of the doldrums if participants perceive that the dollar has stabilized and the Federal Reserve has more room to conduct monetary policy. But even Wednesday, when fed funds were below six pct, the dollar strong and oil on the soft side, bond futures attracted eager sellers when contracts approached recent highs, he said. In addition to a changing perception about the dollar and monetary policy, Golden Gate Futures president Norman Quinn said the beginning of April could bring foreign investors back into the marketplace. "The market is beginning to feel there may be demand at the beginning of the fiscal year in Japan on April 1," Quinn said. Quinn echoed the sentiment of many analysts that there are large amounts of cash waiting to be invested. If Japanese investment in U.S. securities does materialize at the start of Japan's fiscal year, domestic funds may also flow into the bond market, he said. "We could get a stiff rally, possibly enough to bring yields on long bonds down to seven to 7-1/8 pct," compared to the current yield of about 7.5 pct, Quinn said. In the meantime, even the prospect of new supply is not likely to move futures. The Treasury's announcement of a 15 billion dlr refunding operation did little to move cash government securities prices late Wednesday after the close of futures. "I'd be surprised if supply pushed us out of it (the trading range)," Lacey said.  
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED. The Bundesbank left credit policies unchanged after today's regular meeting of its council, a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct, and the Lombard emergency financing rate at 5.0 pct.  
GERMAN BANKS SEE LOW INTEREST RATES CONTINUING. The Association of German Cooperative Banks said in a financial survey that domestic interest rates would continue to remain low for the time being. It said the Bundesbank could hold them down despite strong foreign influence and it saw no interest-straining factors in the economy that could affect the long-term capital market. The inflation rate of one pct also gave no occasion for higher nominal interest rates. But a probable rise in inflation late this year could give very slight grounds for a rise in nominal rates at year's end and next year, it said. The association said generally low interest rates, prospects of lower taxes, a stable dollar rate and expected strong domestic demand led it to believe that the investment climate would remain friendly and the economy would continue its slow but very sure growth. The Bundesbank had managed successfully to keep interest rates down on the short-term money market although its policies had exerted little effect on the long-term capital market, which was so important for investment financing and thus for the course of the economy, it said. In view of the limits to the possibilities monetary policy had in influencing the longer-term capital market, the association saw little sense in wanting to boost the economy through a short-term and expansionist monetary policy. On the other hand it also saw no reason for sticking dogmatically to the money supply target for the whole of 1987. The association said time would show to what extent speculative foreign money and short-term invested domestic money would distort money supply developments. The Bundesbank could hold down money market rates with the highly effective instrument of sale and repurchase transactions, it said.  
CANADA 91-DAY T-BILLS AVERAGE 6.89 PCT, MAKING BANK RATE 7.14 PCT.  CANADA 91-DAY T-BILLS AVERAGE 6.89 PCT, MAKING BANK RATE 7.14 PCT  
Abbey National said it cutting U.K. Mortgage rate by 1.125 pct to 11.25 pct.  Abbey National said it cutting U.K. Mortgage rate by 1.125 pct to 11.25 pct  
Top discount rate at U.K. Bill tender falls to 9.1250 pct.  Top discount rate at U.K. Bill tender falls to 9.1250 pct  
JAPAN LONG-TERM PRIME SEEN CUT TO RECORD LOW SOON. Japan's long-term banks will soon cut their prime rate, now at a record low 5.5 pct, by 0.2 or 0.3 percentage point in response to falling secondary market yields on their five-year debentures, long-term bankers said. The long-term prime rate is customarily set 0.9 percentage point above the coupon on five-year bank debentures issued by the long-term banks every month. The latest bank debentures, at 4.6 pct, have met strong end-investor demand on the prospect of further declines in yen interest rates, dealers said. The current 5.5 pct prime rate has been in effect since February 28.  
GERMAN BOND YIELDS SEEN FALLING IN NEAR TERM. West German bond yields could decline over the next few months if recent efforts to stabilize exchange rates, as seen in last month's Paris pact, extend to keeping down European interest rates, banking economists said. But in the longer term domestic yields could rise under agreements to stimulate West Germany's economy, they said. The Paris agreement has so far successfully stabilized currencies with the threat of central bank intervention, economists said. Economists speculated that G-7 countries may try to bolster the pact by uncoupling U.S. and West German interest rates further when they meet for the IMF Interim Committee in April. "The recent round of monetary accommodation by the Bundesbank and the Bank of Japan and the firming of the Federal Funds rate are significant. They mark an uncoupling of movements in U.S. and foreign interest rates," Salomon Bros Inc said in a recent study. It said narrowing of international interest rate spreads was a major factor in the dollar's fall. These spreads will have to be widened if the dollar is to be stabilized. West German Bundesbank President Karl Otto Poehl encouraged the U.S. not to cut interest rates in January when the Bundesbank cut its own rates by half a point, to avoid weakening the dollar. West German economists see room for further cuts in leading West German rates if the dollar resumes its decline. "It's not a taboo," Peter Pietsch, spokesman for Commerzbank AG said. But most economists see room for a cut in West German rates only in the first half of the year, as re-emerging inflation will limit room for manoeuvre later in the year. The Bundesbank's average yield of public paper is already nearing last year's low. Last week, yields fell to around 5.50 pct, not far from the 1986 low of 5.35 pct posted in mid-April. Economists said the trend may cause domestic investors to shift some funds from short to longer-term paper. Such a move would tend to flatten the yield curve between short and long-term rates, which has become more pronounced since the Bundesbank lowered its discount rate. It might also facilitate a further cut in leading rates, as the shift out of savings accounts into securities would slow growth of the Bundesbank's central bank money stock aggregate. But conflicting with this trend are plans to increase West German tax cuts, part of the Paris currency pact designed to meet U.S. demands for faster West German growth. This move may force interest rates up by creating a revenue vacuum which must be filled by higher government borrowing. This may not occur if private sector demand for credit remains weak, but demand could emerge if rates begin rising. Economists said it appeared the government had already stepped up borrowing this year to accomodate revenue loss from other sources, including tax losses resulting from weaker than expected economic growth, and higher than expected spending. Josef Koerner, chief economist of the West German Ifo-Institut, said in a newspaper interview he expected 1987 tax revenue to be some 11 billion marks below estimates by the West German government in November. Any tax shortfall in itself is unlikely to push yields up. But coupled with other factors such as waning foreign speculative buying of mark bonds on the dollar's decline, long term yields may to have to rise, economists said. Public authority borrowing in 1988 may also rise owing to increases in the second phase of Bonn's tax reform package. The West German government is raising its total tax cuts in 1988 by 5.2 billion marks to 14.4 billion. West German chancellor Helmut Kohl said last week increased borrowing to finance the tax reform is acceptable. Finance minister Gerhard Stoltenberg said last Thursday he was looking for other ways to finance the reform, such as raising indirect taxes. But few economists believe the government will be able to go through with its tax measures without increasing net borrowing. The Bundesbank said in its February report that it was wrong to believe that the first stage of the tax reform in 1986 could be managed without increasing deficits. The Bundesbank said West German public authorities borrowed a large 21.9 billion marks in credit markets in the 1986 final quarter compared with 14.8 billion in fourth quarter 1985. The federal government took up nearly 10 billion marks of the fourth quarter 1986 figures, and also drew on two billion marks of Bundesbank advances at the end of the year, when it had not required such a credit in the 1985 quarter.  
Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct.  Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct  
JAPAN LONG-TERM PRIME SEEN CUT TO RECORD LOW SOON. Japan's long-term banks will soon cut their prime rate, now at a record low 5.5 pct, by 0.2 or 0.3 percentage point in response to falling secondary market yields on their five-year debentures, long-term bankers said. The long-term prime rate is customarily set 0.9 percentage point above the coupon on five-year bank debentures issued by the long-term banks every month. The latest bank debentures, at 4.6 pct, have met strong end-investor demand on the prospect of further declines in yen interest rates, dealers said. The current 5.5 pct prime rate has been in effect since February 28.  
FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.  FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS  
FED ADDS RESERVES VIA CUSTOMER REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange 1.5 billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-3/16 pct when the Fed began its temporary and indirect supply of reserves to the banking system.  
STANDARD FEDERAL <SFB> OFFERS ZERO-POINT LOAN. Standard Federal Bank said it introduced a zero-point fixed rate mortgage loan. The loan program offers borrowers home mortgage financing with no discount fees charged. Standard said that fees charged will include an application fee, commitment fee and out-of-pocket expenses such as title work, survey, recording fees and private mortgage insurance.  
Bundesbank allocates 6.5 billion marks in 28-day repurchase pact at 3.80 pct.  Bundesbank allocates 6.5 billion marks in 28-day repurchase pact at 3.80 pct  
BUNDESBANK ALLOCATES 6.5 BILLION MARKS IN TENDER. The Bundesbank accepted bids for 6.5 billion marks at today's tender for a 28-day securities repurchase pact at a rate of 3.80 pct, a central bank spokesman said. Banks, which bid for a total 8.6 billion marks liquidity, will be credited with the funds allocated tomorrow and must buy back securities pledged on April 22. The allocation was in line with market expectations the Bundesbank would provide more than the 3.4 billion marks draining from this week as an earlier facility expires. Call money fell to 3.60/70 pct ahead of the allocation from 3.75/85 pct yesterday, dealers said. The excess allocation compensates for public funds leaving the system which the Bundesbank added last week via government-owned banks. However major tax payments by banks on behalf of customers drew to a close this week, lessening the need for liquidity. The call money declines surprised some dealers, who speculated it was because the Bundesbank disbursed further government funds today. However, most said this had not occurred. Banks were well stocked with liquidity, having 47.1 billion marks in minimum reserves at the Bundesbank on Friday, up from 49.9 billion on Thursday. Average daily reserves over the first 20 days of the month fell to 52.6 billion from 53.1 billion. For all of March, banks would be required to hold net daily average reserves of 50.7 billion marks, dealers said.  
FED MAY ADD RESERVES, ECONOMISTS SAY. The Federal Reserve may intervene in the government securities market to add reserves today, some economists said, although others felt that the Fed was likely to refrain from any action. Those who believed the Fed will intervene said it would probably add temporary reserves indirectly via 1.5 to two billion dlrs of customer repurchase agreements. But others noted the Fed's current add-need is not large. They also expected the federal funds rate to edge lower. Fed funds, which averaged 6.21 pct on Monday, opened at 6-1/8 pct and remained at that level in early trading.  
FED BUYS 500 MLN DLRS OF BILLS FOR CUSTOMER. The Federal Reserve purchased about 500 mln dlrs of U.S. Treasury bills for a customer, a spokeswoman said. She said that the Fed bought bills maturing in June and July, and on August 27 and September 10 for regular delivery tomorrow. Dealers said that Federal funds were trading at 6-1/8 pct when the Fed announced the operation.  
CITICORP <CCI> RULES OUT CREDIT CARD PRICE WAR. American Express Co's <AXP> recent launch of a new "OPTIMA" credit card, with relatively low interest rates and fees, will increase competition with bank credit-card issuers but will not lead to a pricing war, a senior Citicorp offical said. "Over the next two to three years, a very interesting marketing battle will be fought ... competition will not be on price but on product features," Pei-yuan Chia, head of the U.S. card products group, told a banking analysts meeting. Citicorp is the leading U.S. bank credit-card issuer, with some 10 mln accounts and an 11 pct market share. Chia said that Citicorp would focus its credit card marketing efforts on acceptance, noting that Visa and Mastercard currently enjoy a two-to-one advantage over American Express in terms of worldwide acceptance. He also doubted the popularity of American Express' plan to link interest charges on the new OPTIMA card to the bank prime lending rate. "The consumer likes to have a fixed rate instrument," he said. Richard Braddock, head of the whole individual banking division, added that when there is increased competition, "it is not the big people who get crunched but the small ones."  
TREASURY BALANCES AT FED ROSE ON MARCH 23. Treasury balances at the Federal Reserve rose on March 23 to 3.332 billion dlrs from 3.062 billion dlrs on the previous business day, the Treasury said in its latest budget statement. Balances in tax and loan note accounts fell to 15.513 billion dlrs from 17.257 billion dlrs on the same respective days. The Treasury's operating cash balance totaled 18.845 billion dlrs on March 23 compared with 20.318 billion dlrs on March 20.  
Sumita says Bank of Japan has no intention of lowering its discount rate.  Sumita says Bank of Japan has no intention of lowering its discount rate  
AUSTRALIAN RESERVE BANK CUTS REDISCOUNT RATE. The Reserve Bank of Australia this morning cut the rediscount rate from 17.30 pct to 17.00 pct. The rediscount is the rate at which the bank buys back treasury notes. Market sources said the cut reflected the recent easing in market interest rates. They also pointed to yesterday's treasury note tender where the 400 mln dlrs of 13-week notes went at an average yield of 15.473 pct, down from 15.870 last week. The 100 mln dlrs of 26-week notes went at an average 15.414 from 15.790 last week.  
Danish overnight money market rate cut to 10 pct from 10.5 - central bank.  Danish overnight money market rate cut to 10 pct from 10.5 - central bank  
BANK OF SPAIN PROVIDES YEAR RECORD ASSISTANCE FUNDS. The Bank of Spain provided 1,145 billion pesetas in assistance funds which bankers said reflected fears of fresh increases in overnight rates. The daily auction was the biggest of the year and comes after the previous record set last June 6 of 1,240 billion pesetas. A spokesman for one of Spain top five banks said higher overnight call money rates were expected in the short term in view of disappointing money supply figures for February. The M-4 money supply, measured as liquid assets in public hands, rose 16.7 pct last month against 8.1 pct in January and compared with this year's eight pct target. Money supply growth was 11.4 pct last year. The central bank on Tuesday raised overnight rates by a quarter of a percentage point to 14 pct on demand for 746 billion pesetas. Rates stood at 12.1 pct at the start of the year and have been increased to drain liquidity on rising demand for funds. "The policy is proving counter-productive and rates will have to come down in the long-term," the bank spokesman said in reply to Reuters enquiries. He said higher rates were fuelling an influx of short-term speculative capital from abroad. "At least 800 mln dlrs of current excess liquidity in the system is convertible pesetas from West Germany and other countries with much lower rates," he said.  
FED EXPECTED TO ADD RESERVES. The Federal Reserve is expected to enter the U.S. government securities market to add reserves during its usual intervention period today, economists said. With federal funds trading at a steady 6-3/16 pct, most economists expect an indirect injection of temporary reserves via a medium-sized round of customer repurchase agreements. However, some economists said the Fed may arrange more aggressive system repurchase agreements. Economists would also not rule out an outright bill pass early this afternoon. Such action had been widely anticipated yesterday but failed to materialize.  
FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
FED SETS TWO BILLION DLR CUSTOMER REPURCHASE. The Federal Reserve entered the U.S. government securities market to arrange two billion dlrs of customer repurchase agreements, a spokeswoman for the New York Fed said. Federal funds were trading at 6-3/16 pct at the time of the indirect injection of temporary reserves.  
N.Y. BANK DISCOUNT BORROWINGS NIL IN WEEK. The eight major New York City banks did not borrow from the Federal Reserve in the week ended Wednesday March 25, a Fed spokesman said. It was the second half of a two-week bank statement period that ended on Wednesday. The banks did not borrow in the first week of the period.  
ANZ BANK SAYS IT WILL CUT AUSTRALIAN PRIME TO 18.25 PCT FROM 18.5 ON MARCH 30.  ANZ BANK SAYS IT WILL CUT AUSTRALIAN PRIME TO 18.25 PCT FROM 18.5 ON MARCH 30  
Top discount rate at U.K. Bill tender rises to 9.3456 pct.  Top discount rate at U.K. Bill tender rises to 9.3456 pct  
FED EXPECTED TO ADD RESERVES, ECONOMISTS SAY. The Federal Reserve is expected to enter the U.S. government securities market to add reserves today, economists said. They said the Fed would probably supply temporary reserves indirectly by arranging one to two billion dlrs of customer repurchase agreements. After averaging 6.21 pct yesterday, federal funds were opened at 6-1/8 pct and remained at that level.  
GROS DENIES COURT ACTION AGAINST BRAZIL. Central Bank president Francisco Gros denied rumours that foreign creditors had filed court actions against Brazil to seek payment of its 109-billion dlr debt. "There is no court action against Brazil," Gros said in a television interview. Brazil last month suspended interest payments on its 68 billion dlr debt to commercial banks and yesterday suggested an extension of short-term credit lines for 60 days until May 31. Media reports said some banks rated as small among Brazil's 700 creditors had filed lawsuits against the decision to suspend interest payments. Gros said negotiations with the commercial creditors would start within two weeks, when he and Finance Minister Dilson Funaro attend council meetings of the International Monetary Fund (IMF) in Washington. "Brazil is facing the issue very carefully. We are seeking a negotiation that will give the country space to grow, because only with growth will we be able to meet our commitments," Gros said.  
U.S. TREASURY'S BAKER SEES EXPANSION CONTINUING. Treasury Secretary James Baker said that the current expansion, which he noted was in its fifth year, will continue in the period ahead. He told the House Appropriations Committee that "there is every prospect that the current expansion will continue unabated through 1987 and the years beyond." Baker said interest rates over the period have continued to decline and that "policies of the Federal Reserve assure that ample credit was available. He said that the administration's longer term forecast envisioned that "we will maintain and improve upon our progress in bringing down the rate of inflation."  
FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.  FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS  
FED ADDS RESERVES VIA CUSTOMER REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange 1.5 billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-3/8 pct when the Fed began its temporary and indirect supply of reserves to the banking system.  
CITIBANK SAYS IT RAISES BASE RATE TO 7-3/4 PCT FROM 7-1/2 PCT.  CITIBANK SAYS IT RAISES BASE RATE TO 7-3/4 PCT FROM 7-1/2 PCT  
CHASE MANHATTAN RAISES PRIME RATE TO 7-3/4 PCT FROM 7-1/2, EFFECTIVE TODAY.  CHASE MANHATTAN RAISES PRIME RATE TO 7-3/4 PCT FROM 7-1/2, EFFECTIVE TODAY  
ANALYSTS SEE SLOW MOVE TO HIGHER U.S. PRIME RATE. Quarter-point prime rate increases to 7-3/4 pct by Citibank and Chase Manhattan Bank today will be followed by other banks only after they see clearer signs of the Federal Reserve's policy intentions, economists said. "Based on the spread between banks' cost of funds and the prime rate, it probably makes sense for others to follow, but no rush is likely," said Paul McCulley of E.F. Hutton and Co. Citibank's surprise base rate increase, quickly followed by Chase, sent U.S. bond prices lower and the dollar higher. McCulley said that once the spread between three-month certificates of deposit and the prime rate narrows to less than 1-1/2 percentage points, there is a strong chance of a prime rate increase. It has been under 1-1/4 points recently. However, banks are likely to hold rate increases until they see what the Fed intends to do about interest rates in the near term, analysts said. They noted that banks historically like to follow Fed rate movements, rather than lead them. For example, the last prime rate increase occurred in June 1984 when banks lifted the rate to 13 pct from 12-1/2 pct after a Fed discount rate increase in April of that year. Major banks had been posting a 7-1/2 pct prime rate since last August 26/27, when they lowered the rate from eight pct shortly after the Fed's half-point discount rate cut to the current 5-1/2 pct level on August 20. "The banks will not rush to raise their prime rates. There should be a split prime for a while with some posting a 7-1/2 pct rate and others 7-3/4 pct," said David Jones of Aubrey G. Lanston and Co. Jones said the Federal Open Market Committee at today's meeting voted no change in Fed policy. But he said the Fed may well foster higher interest rates soon. Jones said that, while the FOMC probably voted no policy change today, it may have decided to apply slight upward rate pressure later if the dollar weakens, inflation pressures heat up or the economy shows sign of strong recovery. "The Fed clearly indicated that they did not intend to tighten policy when they did today's coupon pass," said Joseph Liro of S.G. Warburg and Co. In a move that came a day earlier than most expected, the Fed today supplied permanent reserves to the banking system by offering to buy all maturities of Treasury notes and bonds for its own account. This seasonal reserve add is called a "pass." "The Fed demonstrated that there has been no policy change," said Elizabeth Reiners, economist at Dean Witter Reynolds Inc. She said the spread between banks' cost of funds and the prime rate is now around 137 basis points compared with a 153 basis point average in 1986. Reiners said the spread is not really narrow enough to present a clear need for a prime rate increase. The Dean Witter economist said that today's prime rate rise "may have been less a response to interest rates than an attempt to enhance the (balance sheet) bottom line." Reiners said that, given recent problems with loans to developing countries, large money center banks with heavy exposures might be the first to match the higher prime rate in an effort to get more profitable spreads on other loans. The Federal funds rate at which banks lend overnight money to one another could help determine how many banks match the higher prime rate and also how quickly they move. In raising their prime rates, banks cited a higher cost of funds. In the three business days through Monday, the Federal funds rate at which banks lend to one another averaged nearly 6-1/4 pct. But quarter end pressures helped push up funds. The Fed funds rate was extremely volatile today, reflecting demand pressure associated with the end of the quarter and the close of the Japanese fiscal year. Funds traded between five and 6-3/4 pct. Once the special distortions end, analysts said the funds rate probably will return to its recent trading level in the 6-1/8 pct area. They said that, if it stabilizes near there, banks may not quickly boost their prime rates. But a consistently higher funds rates would suggest to many that the Fed was fostering somewhat higher interest rates to help the dollar. Then banks would lift prime rates quickly.  
H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY. Banks in Hong Kong are likely to raise prime rates by half a percentage point to 6-1/2 pct following a one-quarter point prime rate increase by two major U.S. Banks yesterday, dealers said. They told Reuters local banks may decide on the increase at this weekend's routine meeting of the Hong Kong Association of Banks. G.C. Goh, chief dealer of the Standard Chartered Bank, said prime rate increases by Citibank and Chase Manhattan Bank to 7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit. Goh said local banks want to restore the prime to 6-1/2 pct, the level at beginning of 1987. The banks raised the prime to the current six pct from five pct on February 28 after cutting it 1-1/2 points from 6-1/2 on January 15 in response to upside pressure on the Hong Kong dollar, he said. The medium and longer term interbank rates firmed today, with three months ending at 5-1/16 to 4-7/8 pct against yesterday's five to 4-13/16 close. The overnight rate, however, fell to 3-1/2 to three pct from 4-1/2 to four because of increased liquidity for a local stock issue.  
INDIAN RATE CUTS TO SPARK INDUSTRY, AGRICULTURE. The Indian Finance Ministry's announcement in Parliament yesterday, changing the nation's interest rate structure, will benefit industry and agriculture by providing loans at lower interest, bankers and brokers said. The changes, effective today, included reducing commercial bank lending rates that have ranged between 15 pct and 17.5 pct by one percentage point. New rates, which affect both Indian and foreign banks, also include a one percentage point gain, to an annual 10 pct, on deposits of two years or more but less than five. Bank deposits of five years or more carrying 11 pct interest have been abolished. Bankers said the interest rate modifications reflect the government's concern to reduce the costs of borrowing and help improve world competitiveness of Indian goods. There is likely to be a shift to short-term bank deposits by long-term depositors, bankers predicted. This will create the flexibility to draw and re-invest funds in either equity shares or short-term bank deposits, they said. A merchant banker also said reduced manufacturing costs due to lower lending rates are likely to boost the share market. Tata Steel, a trend setter on the Bombay Stock Exchange, opened today higher at 1,040 rupees against yesterday's closing of 1,012.50 rupees. A stockbroker said investors may be less enthusiastic now to buy convertible and non-convertible debentures because the Finance Ministry has reduced the annual interest rate to 12.5 pct and 14 pct respectively from 13.5 and 15 pct respectively. "But overall debenture prospects remain bright because the rates of interest on them will still be higher than what banks pay for deposits of similar maturity," a merchant banker said.  
H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY. Banks in Hong Kong are likely to raise prime rates by half a percentage point to 6-1/2 pct following a one-quarter point prime rate increase by two major U.S. Banks yesterday, dealers said. They told Reuters local banks may decide on the increase at this weekend's routine meeting of the Hong Kong Association of Banks. G.C. Goh, chief dealer of the Standard Chartered Bank, said prime rate increases by Citibank and Chase Manhattan Bank to 7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit. Goh said local banks want to restore the prime to 6-1/2 pct, the level at beginning of 1987. The banks raised the prime to the current six pct from five pct on February 28 after cutting it 1-1/2 points from 6-1/2 on January 15 in response to upside pressure on the Hong Kong dollar, he said. The medium and longer term interbank rates firmed today, with three months ending at 5-1/16 to 4-7/8 pct against yesterday's five to 4-13/16 close. The overnight rate, however, fell to 3-1/2 to three pct from 4-1/2 to four because of increased liquidity for a local stock issue.  
LOWER INTEREST RATES SEEN FOLLOWING IRISH BUDGET. Financial markets welcomed public spending cuts announced by Ireland's new minority government in its budget, saying the move would lead to lower interest rates. Finance Minister Ray MacSharry, making cuts across the board, reduced the Exchequer Borrowing Requirement to 1.85 billion punts, 10.7 pct of GNP, compared with 2.15 billion punts or 13 pct of GNP last year. Allied Irish Banks foreign exchange dealer John Kearney commented: "I would see interest rates coming down by two to 2.5 pct in the next three months."  
U.S. CREDIT MARKET OUTLOOK - PRIME RATE. The prospect that other banks will follow industry leaders Citibank and Chase Manhattan in raising their prime rate is likely to cast a pall over the credit markets today, economists said. Bond prices had been making a smart recovery from two days of heavy selling when Citibank surprised the market by announcing a quarter-point increase in its prime rate to 7-3/4 pct. Chase Manhattan quickly followed. Prices quickly fell by a full point, even though the dollar - the market's overriding concern of late - rose sharply on the news. Citibank cited the higher cost of money, especially in the Euromarket, as the reason for raising its prime rate. Part of this rise in market rates has been caused by fears of a tighter Federal Reserve policy to defend the dollar, but economists said it is too early to tell whether the Fed, whose policy-making federal open market committee, FOMC, meets this week, is already tightening its grip on credit. "The Fed seems to have been a bit slow in meeting the banking system's reserve needs this statement period, but I wouldn't conclude anything until I've seen the Fed data," said Jeffrey Leeds of Chemical Bank. REUTER^M  
BUNDESBANK WILL NOT HOLD PRESS CONFERENCE TOMORROW. The Bundesbank will not hold a press conference after its regular fortnightly council meeting tomorrow, a spokesman said in answer to enquiries. Bundesbank vice-president Helmut Schlesinger will chair the meeting, as president Karl Otto Poehl has a private engagement. The next meeting is scheduled for April 16.  
MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM. 7-1/2, EFFECTIVE TODAY  MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM 7-1/2, EFFECTIVE TODAY  
MANUFACTURERS HANOVER <MHC> RAISES PRIME RATE. Manufacturers Hanover Trust Co became the third major U.S. bank to increase its prime rate to 7-3/4 pct from 7-1/2, matching a move initiated yesterday by Citibank and Chase Manhattan. The bank, the main subsidiary of Manufacturers Hanover Corp, said the new rate is effective today.  
IRVING TRUST <V> RAISES PRIME RATE. Irving Trust Co said it is raising its prime rate to 7-3/4 pct from 7-1/2, effective immediately. It becomes the fourth U.S. bank to raise the rate, following Citibank, Chase Manhattan and Manufacturers Hanover Trust.  
CHEMICAL <CHL> RAISES PRIME RATE TO 7-3/4 PCT. Chemical Bank, the main bank subsidiary of Chemical New York Corp, said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
MARINE MIDLAND <MMB> RAISES PRIME RATE. Marine Midland Banks Inc said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-69 days  5.00 pct  5.00 pct   30-124 days 70-88 days  5.92 pct  5.90 pct  125-150 days 89-123 days  5.00 pct  5.00 pct  151-173 days 124-150 days  5.93 pct  5.92 pct  174-182 days 151-349 days  5.00 pct  5.00 pct  183-349 days 350-360 days  5.98 pct  5.94 pct  350-360 days  
MERCANTILE BANK N.A. <MTRC> RAISES PRIME RATE. Mercantile Bancorp said its Mercantile Bank N.A. raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
CONTINENTAL ILLINOIS <CIL> RAISES PRIME RATE. Continental Illinois Corp said it has raised its prime rate to 7-3/4 from 7-1/2.  
FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES. The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY   RATE       OLD RATE  MATURITY 32 days   6.00 pct   6.10 pct   1 day  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 5.00 pct    30-69 days 5.92 pct    70-88 days 30-123 days  5.00 pct  5.00 pct   89-123 days 124-150 days  5.93 pct  5.93 pct  124-150 days 151-349 days  5.00 pct  5.00 pct  151-349 days 350-360 days  5.98 pct  5.98 pct  350-360 days  
TREASURY'S BAKER SAYS HE HOPES PRIME RATE INCREASES. TEMPORARY  TREASURY'S BAKER SAYS HE HOPES PRIME RATE INCREASES TEMPORARY  
TREASURY'S BAKER HOPES PRIME RATE RISE TEMPORARY. Treasury Secretary James Baker said he hopes yesterday's small increase in two major money center banks' prime rate was a temporary phenomenon. "I hope it was a temporary blip upward," he told a House Appropriations subcommittee. He said the decline in interest rates since President Reagan took office remains "one of the significant accomplishments, in the economic area, of this administration."  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY  30-123 days  5.00 pct  5.00 pct 30-123 days 124-150 days  5.90 pct  5.93 pct  124-150 days 151-349 days  5.00 pct  5.00 pct  151-349 days 350-360 days  5.96 pct  5.98 pct  350-360 days  
IIF EXECUTIVE SEES INTEREST RATES DECLINING. Institute of International Finance Managing Director Horst Schulmann said that his orgnaization has been forecasting further declines of interest rates in the first half this year and then a levelling off and there is no reason to change that. Speaking to reporters, the bank research group said that the increase in interest rates announced yesterday and other activity in the foreign exchange markets did not indicate a fundamental change in the outlook. Schulmann, speaking broadly about the global debt problem, said that the International Monetary Fund should increase its assistance to third world countries. The remarks come just before next week's meeting of the IMF's Interim Committee and the Joint Development Committee of the IMF and World Bank. In a letter to the committee's, the bank group said, "Commercial banks cannot be the dominant supplier of balance of payments finance." Schulmann said that IMF exposure peaked in 1985 and has declined a bit since then.  
AUSTRIAN BANKS DIVIDED OVER INTEREST RATE CUT. Calls for a cut in Austrian interest rates have grown in recent days but bank chiefs are divided over the issue. Karl Vak, General Director of the Zentralsparkasse und Kommerzialbank, Wien, called today for a cut of up to half a percentage point in interest rates across the board. But Hannes Androsch, head of Creditanstalt-Bankverein <CABV.VI> told Reuters he opposed a cut because it would hurt small savers. Vak told a news conference that last January's cut in lending rates for commercial customers and for all depositors by a quarter point had been insufficient. The January cut followed the National Bank's lowering of its discount and Lombard rates by half a point in line with a similar Bundesbank move. Prime lending rate is now 8.75 pct and deposit rates vary between 3.25 and 5.75 pct. Yesterday Hellmuth Klauhs, head of the Genossenschaftliche Zentralbank AG, said rates could fall at least a quarter of a point, or even half a point if German rates dropped further. Vak noted that inflation had fallen below one pct. A widening gap between Austrian rates and cheaper West German credit along with forecasts of slow Austrian economic growth this year also justified a further interest drop, he said. Karl Pale, head of Girozentrale und Bank der oesterreichischen Sparkassen AG [GIRV.VI] has also called for lower deposit rates but said lending rates should remain unchanged at the moment. Interest margins were too small, particularly when compared with other West European countries. But Hans Haumer, head of the Erste Oesterreichische Spar-Casse-Bank told Reuters that no cut should be made unless West German rates came down first. Banking sources said no bank seemed ready to lower rates alone and supporters of a cut would have difficulty overcoming opposition from Creditanstalt, Austria's biggest bank.  
MANUFACTURERS NATIONAL <MNTL> UNIT LIFTS RATE. Manufacturers National Corp's Manufacturers Bank-Wilmington said it increased the interest rate on its no-fee variable rate MasterCard to 13.6 pct from 13.3 pct. The new interest rate applies to the second quarter. The rate on the card is set quarterly.  
BANKERS TRUST <BT> RAISES PRIME LENDING RATE. Bankers Trust Co said it has raised its prime lending rate to 7-3/4 pct from 7-1/2, effective immediately. This move is the latest in a series of similar actions by leading U.S. money center banks, including Citibank NA and Chase Manhattan Bank NA, over the last 24 hours. AmeriTrust Corp of Ohio also raised its prime lending rate to 7-3/4 pct from 7-1/2, effective tomorrow.  
BOATMEN'S NATIONAL BANK <BOAT> RAISES PRIME. Boatmen's Bancshares said its Boatmen's National Bank raised the prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
FIRST WISCONSIN NAT'L BANK<FWB> HIKES PRIME RATE. First Wisconsin National Bank said it has raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective today.  
NEW VENEZUELA DEBT INTEREST RATE GOES INTO EFFECT. The new interest rate of 7/8 pct over Libor on Venezuelan public sector debt payments goes into effect today, Finance Minister Manuel Azpurua said . Azpurua told reporters yesterday the reduction from the previous margin of 1-1/8 pct above Libor will save the country some 50 mln dollars in debt servicing. The new rate is among changes agreed last month to the 20.3 billion dlr public sector debt rescheduling. Under the new agreement, Venezula was also able to extend the term from 12 to 14 years and to lower debt payments in the 1987-89 period by 64 pct. Azpurua said that according to the agreement, the new interest rate will be retroactive to April 1, provided the accord is approved before October 1. He told reporters the term sheet detailing the changes in the rescheduling has already been endorsed by the 13-member debt steering committee and is now being sent to the country's 460 creditor banks for their approval. The new agreement replaces a rescheduling accord signed in February 1986, which Venezuela asked to revise to reflect a 45 pct drop in oil revenues.  
SUNTRUST BANKS <STI> RAISES PRIME TO 7-3/4 PCT. SunTrust Banks said that Sun Banks in Florida and Trust Co banks in Georgia have raised their prime rate to 7-3/4 pct from 7-1/2 pct. The company said the action is effective immediately.  
FIRST BANK SYSTEMS <FBS> UNITS HIKE RATE. First Bank Minneaplois and First Bank Saint Paul, both units of First Bank Systems Inc, said they raised their reference rates to 7-3/4 pct from 7-1/2 pct.  
MORE U.S. BANKS JOIN IN PRIME RATE CUT. Chemical Bank, the main bank subsidiary of Chemical New York Corp, and Marine Midland Banks Inc said they were raising the prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately. In St Louis, Mercantile Bancorp said its Mercantile Bank N.A. was also raising its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. The changes follow similar cuts yesterday by Citicorp and Chase Manhattan.  
CANADIAN IMPERIAL BANK LOWERING VISA RATES. <Canadian Imperial Bank of Commerce> said it was lowering the interest rate on its Visa credit card to 15.9 pct from 18.6 pct, effective with the May billing statement. The bank said it was also halving its yearly Visa card user fee to six dlrs, but would retain its 15 ct fee for each transaction. A bank spokesman said the previously reported call by the Canadian Parliament's finance committee on March 20 for a substantial cut in credit card rates "was a factor" in the move, but he would not elaborate. Canada's minister of state for finance Thomas Hockin had threatened legislation to reduce the rates, which apply to unpaid balances, if the financial institutions did not voluntarily act. The Canadian Imperial Bank spokesman said "the bank card market is a very competitive one and we have to move to stay competitive." Canadian Imperial's new rates match those of <Toronto Dominion Bank>, which lowered its rates before the finance committee report. Canadian Imperial Bank added that cardholders will be allowed to choose between the 15 ct transaction fee or the six dlr yearly card fee. It will also eliminate the 50 ct minimum monthly transaction fee, it said. Minister of State for Finance, Tom Hockin, said in the House of Commons today he was "delighted" with the bank's cut in its credit card rate. "I would hope retail stores and other financial institutions will look to their rates as well," Hockin said during the daily question period.  
BANK OF NEW YORK <BK> RAISES PRIME TO 7-3/4 PCT. Bank of New York said it raised its prime lending rate a quarter point to 7-3/4 pct. It said the move is effective immediately.  
MANUFACTURERS NATIONAL <MNTL> RAISES PRIME. Manufacturers National Bank of Detroit said it increased its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
MELLON <MEL>, REPUBLIC <RPT> LIFT PRIME RATES. Mellon Bank NA of Pittsburgh and Republic Bank of Dallas have both raised their prime lending rates to 7-3/4 pct from 7-1/2, effective immediately.  
ROYAL/BANK CANADA UPS U.S. BASE RATE 1/4 PCT TO 8-1/4 PCT.  ROYAL/BANK CANADA UPS U.S. BASE RATE 1/4 PCT TO 8-1/4 PCT  
ROYAL BANK/CANADA UPS U.S. BASE RATE. <Royal Bank of Canada> said it is raising its U.S. base lending rate by 1/4 pct to 8-1/4 pct, effective tomorrow. The move is the first change in the bank's U.S. dollar base lending rate since last August, when it lowered the rate 1/2 point. It follows the announcement yesterday of a 1/4 point rise to 7-3/4 pct of two of the largest U.S. banks' prime rates.  
HARRIS BANK INCREASES ITS PRIME RATE. <The Harris Trust and Savings Bank> said it has increased its prime rate to 7-3/4 from 7-1/2 effective immediately.  
TCF BANKING AND SAVINGS HIKES PRIME RATE. TCF Banking and Savings FA said it is raising its prime rate to 7-3/4 pct from 7-1/2 pct effective today.  
CCC INTEREST RATE FOR APRIL IS SIX PCT -- USDA. The Commodity Credit Corporation (CCC) interest rate on loans disbursed in April will carry a six pct ionterest rate, the U.S. Agriculture Department said. The April rate is up from March's 5-7/8 pct and reflects the interest rate charged CCC by the U.S. Treasury, the department said.  
SECURITY PACIFIC, PROVIDENT NATIONAL LIFT PRIME. Security Pacific National Bank and Provident National Bank said they increased their prime lending rates a quarter point to 7-3/4 pct. They said the move is effective immediately.  
FIRST NATIONAL BANK OF BOSTON <BKB> RAISES PRIME. The First National Bank of Boston, the main banking unit of Bank of Boston, said it is raising its prime lending rate to 7.75 pct from 7.50 pct, effective immediately.  
MAJOR U.S. BANKS MOVE TO HIGHER 7-3/4 PCT PRIME. Most major U.S. banks today matched Tuesday's quarter-point prime rate cuts by Citibank and Chase Manhattan Bank, the first prime rate boosts since mid-1984. Most cited narrower spreads between the prime and funding costs as justification. Analysts said the prime rate rises may have been triggered partly by a desire by banks to enhance profit margins given problems with developing country loans. Commenting on the prime rate increases, U.S. Treasury Secretary James Baker told a House Appropriations Committee that "I hope it was a temporary blip upward." Among the major banks which today announced prime rate increases to 7-3/4 pct were Bankers Trust, Chemical Bank, Continental Illinois National Bank, Harris Trust and Savings Bank, Irving Trust, Manufacturers Hanover Trust Co, Marine Midland, and Security Pacific National Bank. Other banking companies announcing prime rate rises included Pittsburgh National Bank, Texas Commerce Bank-Houston, Provident National Bank, First National Bank of Boston, Florida Federal Savings and Loan Association, and SunTrust Banks.  
UNION BANK RAISES ITS PRIME RATE TO 7.5 PCT. The Union Bank subsidiary of Standard Chartered PLC said today it was raising its prime lending rate to 7.75 pct from 7.50 pct, effective immediately.  
WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE. Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct.  
Bundesbank leaves credit policies unchanged.  Bundesbank leaves credit policies unchanged  
WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE. Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct.  
BANKAMERICA <BACP> RAISES PRIME RATE TO 7.75 PCT. BankAmerica Corp, following moves by other major banks, said it has raised its prime rate to 7.75 pct from 7.50 pct, effective today.  
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.  BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL  
FIRST CHICAGO <FNB> RAISES PRIME RATE. First Chicago Corp said its First National Bank of Chicago raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately.  
COMERICA <CMCA> RAISES PRIME RATE. Comerica Inc said it raised its prime interest rate to 7-3/4 pct from 7-1/2 pct, effective April 1.  
NORTH CAROLINA FEDERAL <NCFS> RAISES PRIME RATE. North Carolina Federal Savings and Loan Association said it has raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective yesterday, following moves by major banks.  
J.P. MORGAN <JPM> INCREASES PRIME RATE. J.P. Morgan and Co Inc said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective today. Most major U.S. banks are now posting a 7-3/4 pct rate. Citibank was the first to announce an increase on Tuesday.  
ANZ BANK TO CUT AUSTRALIAN PRIME RATE TO 18 PCT. Australia and New Zealand Banking Group Ltd <ANZA.S> said it will lower its Australian prime lending rate to 18 pct from 18.25, effective April 6. The cut is the second announced by the bank in the last week, following a cut from 18.5 pct effective last Monday. The ANZ's new rate will be the lowest prime set by the four major trading banks and matches the rate set by one of the smaller foreign banks in January and left unchanged during the rise in primes over the last three months. Other primes range from 18.25 to 18.5 pct, including those of the other three majors.  
ANZ BANK IN N.Z. RAISES INDICATOR LENDING RATE. The Australia and New Zealand Banking Group Ltd in New Zealand said it will raise its indicator lending rate to 23 pct from 21.5 pct on April 7. A bank statement said the continuing rise in the cost of funds had to be passed on to the lending customers. ANZ managing director Brian Weeks said: "Recent developments in the money markets are of deep concern to all participants ... Market participants are understandably nervous and cautious about future developments. These include flows to and from the government relating to the privatisation of seven government departments on April 1. "We welcome the flexibility evident in the Reserve Bank's move to raise the system cash target yesterday, but feel that to reduce the present nervousness the cash target and primary liquidity level need to be raised further...," he said. The Reserve Bank has raised its daily cash target to 45 mln N.Z. Dlrs from its normal 30 mln dlrs. Call rates have traded as high as 65 pct this week because of business year-end March 31 balance date book squaring. Westpac Banking Corp in New Zealand announced yesterday it would increase its indicator lending rate by 1.5 percentage points to 22.5 pct on April 7.  
BELGIUM CUTS TREASURY CERTIFICATE RATES. The Belgian National Bank cut interest rates on one, two and three-month treasury certificates to 7.30 pct from 7.40 pct effective immediately, the bank said in a telex message. The Bank last adjusted its short-term treasury certificate rates on March 23, when it also reduced rates for all three periods by 0.10 points. A National Bank spokesman said the latest adjustment would bring the rates closer in line with currently prevailing interbank interest rates. The spokesman said it was too early to predict whether the move would herald a reduction in discount rate, which currently stands at eight pct, when the Bank holds its regular weekly meeting at which the rate is discussed next Wednesday. The discount rate generally moves in tandem with the three-month treasury certificate rate. However, there is no formal link and the discount rate was not adjusted following the March 23 changes.  
TOP DISCOUNT RATE AT UK BILL TENDER RISES TO 9.5261 PCT.  TOP DISCOUNT RATE AT UK BILL TENDER RISES TO 9.5261 PCT  
TOP DISCOUNT RATE AT UK BILL TENDER 9.5261 PCT. The top accepted rate of discount at the weekly U.K. Treasury bill tender rose to 9.5261 pct  from 9.3456 pct last week. Applications at the lowest accepted price of 97.625 stg were allotted around 81 pct of the amount applied for, and applications above that price were allotted in full, the Bank of England said. A total of 100 mln stg of Treasury bills was offered for sale this week. Last week, the average rate of discount was 9.3157 pct.  
AVERAGE DISCOUNT RATE AT UK BILL TENDER 9.5195 PCT. The average rate of discount at today's U.K. Treasury bill tender rose to 9.5195 pct from 9.3157 pct last week, the Bank of England said. This week's 100 mln stg offer of 91-day bills met applications of 327 mln stg, the bank said. Applications for bills dated Monday to Friday at the top accepted rate of discount of 9.5261 pct were allotted about 81 pct. Next week 100 mln stg of Treasury bills will be offered, replacing 100 mln stg of maturities.  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-273 days  5.00 pct  5.00 pct    30-89 days 274-294 days  5.92 pct  5.83 pct   90-100 days 295-344 days  5.00 pct  5.00 pct  101-181 days 345-360 days  5.93 pct  5.82 pct  182-195 days 5.00 pct  196-274 days 5.90 pct  275-295 days 5.00 pct  296-360 days  
3-APR-1987 10:09:10.28. 3-APR-1987 10:09:10.28 
SPAIN RAISES CALL MONEY RATE TO 14.5 PCT. The Bank of Spain said it raised its rate for overnight call money to 14.5 pct from 14 pct with immediate effect at today's daily auction for assistance funds. The move followed comments yesterday by central bank governor Mariano Rubio, who said money supply growth was too fast. The bank said later that it was leaving its rate for special assistance funds from its second window unchanged at 16 pct, surprising operators who had expected an increase there too.  
SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES. The Student Loan Marketing Association said its rates on short-term discount notes were as follows: MATURITY   NEW RATE    OLD RATE  MATURITY 5-14 days  5.65 pct    5.60 pct     5-14 days 15-78 days  5.00 pct    5.00 pct    15-81 days 79-85 days  5.83 pct    5.75 pct    82-88 days 89-360 days  5.00 pct    5.00 pct   89-174 days 5.85 pct  175-180 days 5.00 pct  181-360 days  
FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES. The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY   RATE       OLD RATE  MATURITY 31 days   5.95 pct   6.00 pct  32 days  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-273 days  5.00 pct  5.00 pct   30-273 days 274-294 days  5.90 pct  5.92 pct  274-294 days 295-344 days  5.00 pct  5.00 pct  295-344 days 345-360 days  5.93 pct  5.93 pct  345-360 days  
FHLBB SAYS MORTGAGE RATES CONTINUE DECLINE. The Federal Home Loan Bank Board said home mortgage rates fell from early February to early March to their lowest point in nine years, but the rate of decline was slower than it had been in recent months. The bank board said the average effective commitment rate for fixed-rate mortgages for single family homes and a 25 pct loan-to-price ratio with a maturity of at least 15 years was 9.48 pct in early March. The rate was four basis points lower than a month ago, only one-eighth the size of decline in the previous month, the bank board said. Rates for adjustable-rate mortgages decline eight basis points from early February to 8.43 pct in early March, the bank board said. The drop was far less than the 15 basis point decline in the previous period, the agency said. The average effective interest rate on all loans closed by major mortgage lenders declined nine basis points from early February to early March, the agency said. The fall brought the rate to 9.14 pct was the lowest since December 1977, it said. The effective rate for ARMS was 8.39 pct, 15 basis points below a month earlier. For fixed-rate loans it was 9.36 pct, 14 basis points below a month earlier, the agency said.  
WHITE HOUSE SAYS INTEREST RATES REFLECT MARKET. The White House said the rise in interest rates was "unfortunate in a general sense" but reflected market forces. "There's always movement up and down and the basic fact is that we believe the economy is strong and growing and there will always be fluctuations in the interest rate, but the economy is sound and in good shape," spokesman Marlin Fitzwater said. Citibank raised its prime rate by one quarter of a point and the move was followed by other banks.  
BANK OF MONTREAL LOWERS CREDIT CARD RATE. Bank of Montreal said it will reduce the interest rate it charges on outstanding MasterCard balances to 18.3 pct from 21 pct, beginning in July. The bank said it will continue its policy of not charging any annual fee or transaction fees to credit card holders.  
BAKER REPEATS HE HOPES PRIME HIKE TEMPORARY. Treasury Secretary James Baker reiterated his hope that this week's rise in prime rates would be a temporary blip upwards. "I would hope that it would simply be a temporary blip upward as we've seen in the past," Baker said in television interview with the Cable News Network. The interview airs tomorrow but CNN released extracts from his remarks today. Baker also repeated his position that the reaction of financial markets to U.S. tariffs on Japanese electronic goods showed "the importance of the United States not going protectionist. The markets were telling us...be careful."  
HK SHANGHAI BANK, STANDARD CHARTERED BANK RAISE PRIME ONE-HALF POINT TO 6.5 PCT..  HK SHANGHAI BANK, STANDARD CHARTERED BANK RAISE PRIME ONE-HALF POINT TO 6.5 PCT.  
HONG KONG BANKS RAISE PRIME ONE-HALF POINT TO 6.5 PCT. Hongkong and Shanghai Banking Corp and Standard Chartered Bank raised their prime rate one-half point to 6.5 pct, effective Tuesday, the Association of Banks said. The association said in a statement deposit rates have also been increased by 1/4 to 1/2 percentage point. The banks last announced an adjustment on February 28 when they raised the prime rate by one point to six pct. The deposit interest rates are now savings and 24 hours two pct, seven-day call, one week and two weeks 2-1/4 pct, one month and two months 2-3/4 pct, three and six months 3-1/4 pct, nine months 3-1/2 pct and 12 months four pct.  
NATIONAL AUSTRALIA BANK LOWERS BENCHMARK PRIME. National Australia Bank Ltd <NABA.S> said it lowered its benchmark prime lending rate to 18.25 pct from 18.5, effective today, but left its base rate at 18.5. The benchmark reduction brings the rate into line with the prime rates of most of Australia's trading banks, including those of two of the other three major trading banks. However, the rate is above the 18 pct - the lowest ruling rate - set by the other major, the Australia and New Zealand Banking Group Ltd <ANZA.S>, on Friday and effective today. The benchmark is based on short-term interest rate movements while the base rate is tied to longer-term trends.  
CHASE-AMP BANK TO LOWER AUSTRALIAN PRIME RATE TO 17.75 PCT FROM 18.25 TOMORROW.  CHASE-AMP BANK TO LOWER AUSTRALIAN PRIME RATE TO 17.75 PCT FROM 18.25 TOMORROW  
CHASE-AMP BANK CUTS AUSTRALIAN PRIME TO 17.75 PCT. <Chase-AMP Bank Ltd> said it will lower its prime lending rate to 17.75 pct from 18.25, effective tomorrow. The bank is the first to lower its prime rate below the 18 pct set by a few banks in the last few days in a continuation of a downward trend which began late last month. Other prime rates range from 18.25 to 18.5 pct, with the majority on 18.25. The bank said the reduction reflected the recent downturn in money market rates, the improved economic outlook and adequate liquidity in the second quarter tax rundown period.  
CHASE-AMP BANK CUTS AUSTRALIAN PRIME TO 17.75 PCT. <Chase-AMP Bank Ltd> said it will lower its prime lending rate to 17.75 pct from 18.25, effective tomorrow. The bank is the first to lower its prime rate below the 18 pct set by a few banks in the last few days in a continuation of a downward trend which began late last month. Other prime rates range from 18.25 to 18.5 pct, with the majority on 18.25. The bank said the reduction reflected the recent downturn in money market rates, the improved economic outlook and adequate liquidity in the second quarter tax rundown period.  
VOLCKER SAYS FED POLICY NOT RESPONSIBLE FOR PRIME RATE RISE.  VOLCKER SAYS FED POLICY NOT RESPONSIBLE FOR PRIME RATE RISE  
VOLCKER SAYS FED POLICY NOT LINKED TO RATE RISE. Federal Reserve Board Chairman Paul Volcker said that he did not believe there was a connection between the Fed's policies and the recent rise in the prime interest rate by most major U.S. banks. Asked by reporters following testimony before the Senate Banking Committee whether the Fed had anything to do with the rise to 7-3/4 pct in the prime, he replied, "not that I was able to detect."  
U.S. SAYS NO PACT ON RELIEF FOR POOREST STATES. There is no consensus so far among industrial countries on an agreement providing debt relief for the world's poorest nations, a senior U.S. Treasury official said. The official said, "There has not been a consensus reached yet," when asked about reports the Paris club of western creditors had agreed to long-term stretch outs of African debt at concessional interest rates. The official, briefing reporters on this week's semiannual IMF meetings, said the issue would be discussed this week and the U.S. had an open mind on the proposal but it did object to concessional interest rate relief.  
DESJARDINS GROUP LOWERS VISA INTEREST RATE. (La Confederation des Caisses Populaires et d'Economie Desjardins), the Quebec credit union group, said it is lowering the interest rate on unpaid balances on its Visa credit card to 15.9 pct from 18.0 pct, effective with June billing statements. The move follows cuts in credit card interest rate charges by several Canadian banks.  
DIAMOND SHAMROCK (DIA) CUTS CRUDE PRICES. Diamond Shamrock Corp said that effective today it had cut its contract prices for crude oil by 1.50 dlrs a barrel. The reduction brings its posted price for West Texas Intermediate to 16.00 dlrs a barrel, the copany said. "The price reduction today was made in the light of falling oil product prices and a weak crude oil market," a company spokeswoman said. Diamond is the latest in a line of U.S. oil companies that have cut its contract, or posted, prices over the last two days citing weak oil markets.  
OPEC MAY HAVE TO MEET TO FIRM PRICES - ANALYSTS. OPEC may be forced to meet before a scheduled June session to readdress its production cutting agreement if the organization wants to halt the current slide in oil prices, oil industry analysts said. "The movement to higher oil prices was never to be as easy as OPEC thought. They may need an emergency meeting to sort out the problems," said Daniel Yergin, director of Cambridge Energy Research Associates, CERA. Analysts and oil industry sources said the problem OPEC faces is excess oil supply in world oil markets. "OPEC's problem is not a price problem but a production issue and must be addressed in that way," said Paul Mlotok, oil analyst with Salomon Brothers Inc. He said the market's earlier optimism about OPEC and its ability to keep production under control have given way to a pessimistic outlook that the organization must address soon if it wishes to regain the initiative in oil prices. But some other analysts were uncertain that even an emergency meeting would address the problem of OPEC production above the 15.8 mln bpd quota set last December. "OPEC has to learn that in a buyers market you cannot have deemed quotas, fixed prices and set differentials," said the regional manager for one of the major oil companies who spoke on condition that he not be named. "The market is now trying to teach them that lesson again," he added. David T. Mizrahi, editor of Mideast reports, expects OPEC to meet before June, although not immediately. However, he is not optimistic that OPEC can address its principal problems. "They will not meet now as they try to take advantage of the winter demand to sell their oil, but in late March and April when demand slackens," Mizrahi said. But Mizrahi said that OPEC is unlikely to do anything more than reiterate its agreement to keep output at 15.8 mln bpd." Analysts said that the next two months will be critical for OPEC's ability to hold together prices and output. "OPEC must hold to its pact for the next six to eight weeks since buyers will come back into the market then," said Dillard Spriggs of Petroleum Analysis Ltd in New York. But Bijan Moussavar-Rahmani of Harvard University's Energy and Environment Policy Center said that the demand for OPEC oil has been rising through the first quarter and this may have prompted excesses in its production. "Demand for their (OPEC) oil is clearly above 15.8 mln bpd and is probably closer to 17 mln bpd or higher now so what we are seeing characterized as cheating is OPEC meeting this demand through current production," he told Reuters in a telephone interview.  
TEXACO CANADA CUTS CRUDE PRICES 64 CANADIAN CTS/BBL, PAR GRADE TO 22.26 CANADIAN DLRS.  TEXACO CANADA CUTS CRUDE PRICES 64 CANADIAN CTS/BBL, PAR GRADE TO 22.26 CANADIAN DLRS  
TEXACO CANADA <TXC> LOWERS CRUDE POSTINGS. Texaco Canada said it lowered the contract price it will pay for crude oil 64 Canadian cts a barrel, effective today. The decrease brings the company's posted price for the benchmark grade, Edmonton/Swann Hills Light Sweet, to 22.26 Canadian dlrs a bbl. Texaco Canada last changed its crude oil postings on Feb 19.  
MARATHON PETROLEUM REDUCES CRUDE POSTINGS. Marathon Petroleum Co said it reduced the contract price it will pay for all grades of crude oil one dlr a barrel, effective today. The decrease brings Marathon's posted price for both West Texas Intermediate and West Texas Sour to 16.50 dlrs a bbl. The South Louisiana Sweet grade of crude was reduced to 16.85 dlrs a bbl. The company last changed its crude postings on Jan 12.  
HOUSTON OIL <HO> RESERVES STUDY COMPLETED. Houston Oil Trust said that independent petroleum engineers completed an annual study that estimates the trust's future net revenues from total proved reserves at 88 mln dlrs and its discounted present value of the reserves at 64 mln dlrs. Based on the estimate, the trust said there may be no money available for cash distributions to unitholders for the remainder of the year. It said the estimates reflect a decrease of about 44 pct in net reserve revenues and 39 pct in discounted present value compared with the study made in 1985.  
KUWAIT SAYS NO PLANS FOR EMERGENCY OPEC TALKS. Kuwait"s Oil Minister, in remarks published today, said there were no plans for an emergency OPEC meeting to review oil policies after recent weakness in world oil prices. Sheikh Ali al-Khalifa al-Sabah was quoted by the local daily al-Qabas as saying: "None of the OPEC members has asked for such a meeting." He denied Kuwait was pumping above its quota of 948,000 barrels of crude daily (bpd) set under self-imposed production limits of the 13-nation organisation. Traders and analysts in international oil markets estimate OPEC is producing up to one mln bpd above a ceiling of 15.8 mln bpd agreed in Geneva last December. They named Kuwait and the United Arab Emirates, along with the much smaller producer Ecuador, among those producing above quota. Kuwait, they said, was pumping 1.2 mln bpd. "This rumour is baseless. It is based on reports which said Kuwait has the ability to exceed its share. They suppose that because Kuwait has the ability, it will do so," the minister said. Sheikh Ali has said before that Kuwait had the ability to produce up to 4.0 mln bpd. "If we can sell more than our quota at official prices, while some countries are suffering difficulties marketing their share, it means we in Kuwait are unusually clever," he said. He was referring apparently to the Gulf state of qatar, which industry sources said was selling less than 180,000 bpd of its 285,000 bpd quota, because buyers were resisting official prices restored by OPEC last month pegged to a marker of 18 dlrs per barrel. Prices in New York last week dropped to their lowest levels this year and almost three dollars below a three-month high of 19 dollars a barrel. Sheikh Ali also delivered "a challenge to any international oil company that declared Kuwait sold below official prices." Because it was charging its official price, of 16.67 dlrs a barrel, it had lost custom, he said but did not elaborate. However, Kuwait had guaranteed markets for its oil because of its local and international refining facilities and its own distribution network abroad, he added. He reaffirmed that the planned meeting March 7 of OPEC"s differentials committee has been postponed until the start of April at the request of certain of the body"s members. Ecuador"s deputy energy minister Fernando Santos Alvite said last Wednesday his debt-burdened country wanted OPEC to assign a lower official price for its crude, and was to seek this at talks this month of opec"s pricing committee. Referring to pressure by oil companies on OPEC members, in apparent reference to difficulties faced by Qatar, he said: "We expected such pressure. It will continue through March and April." But he expected the situation would later improve.  
INDONESIA SEEN AT CROSSROADS OVER ECONOMIC CHANGE. Indonesia appears to be nearing a political crossroads over measures to deregulate its protected economy, the U.S. Embassy says in a new report. To counter falling oil revenues, the government has launched a series of measures over the past nine months to boost exports outside the oil sector and attract new investment. Indonesia, the only Asian member of OPEC and a leading primary commodity producer, has been severely hit by last year"s fall in world oil prices, which forced it to devalue its currency by 31 pct in September. But the U.S. Embassy report says President Suharto"s government appears to be divided over what direction to lead the economy. "(It) appears to be nearing a crossroads with regard to deregulation, both as it pertains to investments and imports," the report says. It primarily assesses Indonesia"s agricultural sector, but also reviews the country"s general economic performance. It says that while many government officials and advisers are recommending further relaxation, "there are equally strong pressures being exerted to halt all such moves." "This group strongly favours an import substitution economy," the report says. Indonesia"s economic changes have been welcomed by the World Bank and international bankers as steps in the right direction, though they say crucial areas of the economy like plastics and steel remain highly protected, and virtual monopolies. Three sets of measures have been announced since last May, which broadened areas for foreign investment, reduced trade restrictions and liberalised imports. The report says Indonesia"s economic growth in calendar 1986 was probably about zero, and the economy may even have contracted a bit. "This is the lowest rate of growth since the mid-1960s," the report notes. Indonesia, the largest country in South-East Asia with a population of 168 million, is facing general elections in April. But the report hold out little hope for swift improvement in the economic outlook. "For 1987 early indications point to a slightly positive growth rate not exceeding one pct. Economic activity continues to suffer due to the sharp fall in export earnings from the petroleum industry." "Growth in the non-oil sector is low because of weak domestic demand coupled with excessive plant capacity, real declines in construction and trade, and a reduced level of growth in agriculture," the report states. Bankers say continuation of present economic reforms is crucial for the government to get the international lending its needs. A new World Bank loan of 300 mln dlrs last month in balance of payments support was given partly to help the government maintain the momentum of reform, the Bank said.  
SAUDI RIYAL DEPOSIT RATES REMAIN FIRM. Saudi riyal interbank deposits were steady at yesterday's higher levels in a quiet market. Traders said they were reluctant to take out new positions amidst uncertainty over whether OPEC will succeed in halting the current decline in oil prices. Oil industry sources said yesterday several Gulf Arab producers had had difficulty selling oil at official OPEC prices but Kuwait has said there are no plans for an emergency meeting of the 13-member organisation. A traditional Sunday lull in trading due to the European weekend also contributed to the lack of market activity. Spot-next and one-week rates were put at 6-1/4, 5-3/4 pct after quotes ranging between seven, six yesterday. One, three, and six-month deposits were quoted unchanged at 6-5/8, 3/8, 7-1/8, 6-7/8 and 7-3/8, 1/8 pct respectively. The spot riyal was quietly firmer at 3.7495/98 to the dollar after quotes of 3.7500/03 yesterday.  
QATAR UNVEILS BUDGET FOR FISCAL 1987/88. The Gulf oil state of Qatar, recovering slightly from last year's decline in world oil prices, announced its first budget since early 1985 and projected a deficit of 5.472 billion riyals. The deficit compared with a shortfall of 7.3 billion riyals in the last published budget for 1985/86. In a statement outlining the budget for the fiscal year 1987/88 beginning today, Finance and Petroleum Minister Sheikh Abdul-Aziz bin Khalifa al-Thani said the government expected to spend 12.217 billion riyals in the period. Projected expenditure in the 1985/86 budget had been 15.6 billion riyals. Sheikh Abdul-Aziz said government revenue would be about 6.745 billion riyals, down by about 30 pct on the 1985/86 projected revenue of 9.7 billion. The government failed to publish a 1986/87 budget due to uncertainty surrounding oil revenues. Sheikh Abdul-Aziz said that during that year the government decided to limit recurrent expenditure each month to one-twelfth of the previous fiscal year's allocations minus 15 pct. He urged heads of government departments and public institutions to help the government rationalise expenditure. He did not say how the 1987/88 budget shortfall would be covered. Sheikh Abdul-Aziz said plans to limit expenditure in 1986/87 had been taken in order to relieve the burden placed on the country's foreign reserves. He added in 1987/88 some 2.766 billion riyals had been allocated for major projects including housing and public buildings, social services, health, education, transport and communications, electricity and water, industry and agriculture. No figure was revealed for expenditure on defence and security. There was also no projection for oil revenue. Qatar, an OPEC member, has an output ceiling of 285,000 barrels per day. Sheikh Abdul-Aziz said: "Our expectations of positive signs regarding (oil) price trends, foremost among them OPEC's determination to shoulder its responsibilites and protect its wealth, have helped us make reasonable estimates for the coming year's revenue on the basis of our assigned quota."  
SAUDI ARABIA REITERATES COMMITMENT TO OPEC PACT. Saudi Arabian Oil Minister Hisham Nazer reiterated the kingdom's commitment to last December's OPEC accord to boost world oil prices and stabilise the market, the official Saudi Press Agency SPA said. Asked by the agency about the recent fall in free market oil prices, Nazer said Saudi Arabia "is fully adhering by the ... Accord and it will never sell its oil at prices below the pronounced prices under any circumstance." Nazer, quoted by SPA, said recent pressure on free market prices "may be because of the end of the (northern hemisphere) winter season and the glut in the market." Saudi Arabia was a main architect of the December accord, under which OPEC agreed to lower its total output ceiling by 7.25 pct to 15.8 mln barrels per day (bpd) and return to fixed prices of around 18 dlrs a barrel. The agreement followed a year of turmoil on oil markets, which saw prices slump briefly to under 10 dlrs a barrel in mid-1986 from about 30 dlrs in late 1985. Free market prices are currently just over 16 dlrs. Nazer was quoted by the SPA as saying Saudi Arabia's adherence to the accord was shown clearly in the oil market. He said contacts among members of OPEC showed they all wanted to stick to the accord. In Jamaica, OPEC President Rilwanu Lukman, who is also Nigerian Oil Minister, said the group planned to stick with the pricing agreement. "We are aware of the negative forces trying to manipulate the operations of the market, but we are satisfied that the fundamentals exist for stable market conditions," he said. Kuwait's Oil Minister, Sheikh Ali al-Khalifa al-Sabah, said in remarks published in the emirate's daily Al-Qabas there were no plans for an emergency OPEC meeting to review prices. Traders and analysts in international oil markets estimate OPEC is producing up to one mln bpd above the 15.8 mln ceiling. They named Kuwait and the United Arab Emirates, along with the much smaller producer Ecuador, among those producing above quota. Sheikh Ali denied that Kuwait was over-producing.  
SAUDI FEBRUARY CRUDE OUTPUT PUT AT 3.5 MLN BPD. Saudi crude oil output last month fell to an average of 3.5 mln barrels per day (bpd) from 3.8 mln bpd in January, Gulf oil sources said. They said exports from the Ras Tanurah and Ju'aymah terminals in the Gulf fell to an average 1.9 mln bpd last month from 2.2 mln in January because of lower liftings by some customers. But the drop was much smaller than expected after Gulf exports rallied in the fourth week of February to 2.5 mln bpd from 1.2 mln in the third week, the sources said. The production figures include neutral zone output but not sales from floating storage, which are generally considered part of a country's output for Opec purposes. Saudi Arabia has an Opec quota of 4.133 mln bpd under a production restraint scheme approved by the 13-nation group last December to back new official oil prices averaging 18 dlrs a barrel. The sources said the two-fold jump in exports last week appeared to be the result of buyers rushing to lift February entitlements before the month-end. Last week's high export levels appeared to show continued support for official Opec prices from Saudi Arabia's main crude customers, the four ex-partners of Aramco, the sources said. The four -- Exxon Corp <XON>, Mobil Corp <MOB>, Texaco Inc <TX> and Chevron Corp <CHV> -- signed a long-term agreement last month to buy Saudi crude for 17.52 dlrs a barrel. However the sources said the real test of Saudi Arabia's ability to sell crude at official prices in a weak market will come this month, when demand for petroleum products traditionally tapers off. Spot prices have fallen in recent weeks to more than one dlr below Opec levels. Saudi Arabian oil minister Hisham Nazer yesterday reiterated the kingdom's commitment to the December OPEC accord and said it would never sell below official prices. The sources said total Saudi refinery throughput fell slightly in February to an average 1.1 mln bpd from 1.2 mln in January because of cuts at the Yanbu and Jubail export refineries. They put crude oil exports through Yanbu at 100,000 bpd last month, compared to zero in January, while throughput at Bahrain's refinery and neutral zone production remained steady at around 200,000 bpd each.  
GULF ARAB DEPUTY OIL MINISTERS TO MEET IN BAHRAIN. Deputy oil ministers from six Gulf Arab states will meet in Bahrain today to discuss coordination of crude oil marketing, the official Emirates news agency WAM reported. WAM said the officials would be discussing implementation of last Sunday's agreement in Doha by Gulf Cooperation Council (GCC) oil ministers to help each other market their crude oil. Four of the GCC states - Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Qatar - are members of the Organiaation of Petroleum Exporting Countries (OPEC) and some face stiff buyer resistance to official OPEC prices.  
SAUDI ARABIA REITERATES COMMITMENT TO OPEC ACCORD. Saudi Arabian Oil Minister Hisham Nazer reiterated the kingdom's commitment to last December's OPEC accord to boost world oil prices and stabilize the market, the official Saudi Press Agency SPA said. Asked by the agency about the recent fall in free market oil prices, Nazer said Saudi Arabia "is fully adhering by the ... accord and it will never sell its oil at prices below the pronounced prices under any circumstance." Saudi Arabia was a main architect of December pact under which OPEC agreed to cut its total oil output ceiling by 7.25 pct and return to fixed prices of around 18 dollars a barrel.  
KUWAIT MINISTER SAYS NO EMERGENCY OPEC TALKS SET. Kuwait's oil minister said in a newspaper interview that there were no plans for an emergency OPEC meeting after the recent weakness in world oil prices. Sheikh Ali al-Khalifa al-Sabah was quoted by the local daily al-Qabas as saying that "none of the OPEC members has asked for such a meeting." He also denied that Kuwait was pumping above its OPEC quota of 948,000 barrels of crude daily (bpd). Crude oil prices fell sharply last week as international oil traders and analysts estimated the 13-nation OPEC was pumping up to one million bpd over its self-imposed limits.  
SHELL CANADA CUTS CRUDE OIL PRICES BY UP TO 1.27 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE.  SHELL CANADA CUTS CRUDE OIL PRICES BY UP TO 1.27 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE  
STUDY GROUP URGES INCREASED U.S. OIL RESERVES. A study group said the United States should increase its strategic petroleum reserve to one mln barrels as one way to deal with the present and future impact of low oil prices on the domestic oil industry. U.S. policy now is to raise the strategic reserve to 750 mln barrels, from its present 500 mln, to help protect the economy from an overseas embargo or a sharp price rise. The Aspen Institute for Humanistic Studies, a private group, also called for new research for oil exploration and development techniques. It predicted prices would remain at about 15-18 dlrs a barrel for several years and then rise to the mid 20s, with imports at about 30 pct of U.S. consumption. It said instead that such moves as increasing oil reserves and more exploration and development research would help to guard against or mitigate the risks of increased imports.  
STUDY GROUP URGES INCREASED U.S. OIL RESERVES. A study group said the United States should increase its strategic petroleum reserve to one mln barrels as one way to deal with the present and future impact of low oil prices on the domestic oil industry. U.S. policy now is to raise the strategic reserve to 750 mln barrels, from its present 500 mln, to help protect the economy from an overseas embargo or a sharp price rise. The Aspen Institute for Humanistic Studies, a private group, also called for new research for oil exploration and development techniques. It predicted prices would remain at about 15-18 dlrs a barrel for several years and then rise to the mid 20s, with imports at about 30 pct of U.S. consumption. The study cited two basic policy paths for the nation: to protect the U.S. industry through an import fee or other such device or to accept the full economic benefits of cheap oil. But the group did not strongly back either option, saying there were benefits and drawbacks to both. It said instead that such moves as increasing oil reserves and more exploration and development research would help to guard against or mitigate the risks of increased imports.  
PETRO-CANADA CUT CRUDE PRICES BY 1.43 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE.  PETRO-CANADA CUT CRUDE PRICES BY 1.43 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE  
UNOCAL <UCL> UNIT CUTS CRUDE OIL POSTED PRICES. Unocal Corp's Union Oil Co said it lowered its posted prices for crude oil one to 1.50 dlrs a barrel in the eastern region of the U.S., effective Feb 26. Union said a 1.50 dlrs cut brings its posted price for the U.S. benchmark grade, West Texas Intermediate, to 16 dlrs. Louisiana Sweet also was lowered 1.50 dlrs to 16.35 dlrs, the company said. No changes were made in Union's posted prices for West Coast grades of crude oil, the company said.  
NYMEX WILL EXPAND OFF-HOUR TRADING APRIL ONE. The New York Mercantile Exchange set April one for the debut of a new procedure in the energy complex that will increase the use of energy futures worldwide. On April one, NYMEX will allow oil traders that do not hold a futures position to initiate, after the exchange closes, a transaction that can subsequently be hedged in the futures market, according to an exchange spokeswoman. "This will change the way oil is transacted in the real world," said said Thomas McKiernan, McKiernan and Co chairman. Foreign traders will be able to hedge trades against NYMEX prices before the exchange opens and negotiate prices at a differential to NYMEX prices, McKiernan explained. The expanded program "will serve the industry because the oil market does not close when NYMEX does," said Frank Capozza, secretary of Century Resources Inc. The rule change, which has already taken effect for platinum futures on NYMEX, is expected to increase the open interest and liquidity in U.S. energy futures, according to traders and analysts. Currently, at least one trader in this transaction, called an exchange for physical or EFP, must hold a futures position before entering into the transaction. Under the new arrangement, neither party has to hold a futures position before entering into an EFP and one or both parties can offset their cash transaction with a futures contract the next day, according to exchange officials. When NYMEX announced its proposed rule change in December, NYMEX President Rosemary McFadden, said, "Expansion of the EFP provision will add to globalization of the energy markets by providing for, in effect, 24-hour trading." The Commodity Futures Trading Commission approved the rule change in February, according to a CFTC spokeswoman.  
NYMEX RULE CHANGE SEEN BOOSTING ENERGY TRADE. The New York Mercantile Exchange said it will introduce exchanges for physicals (EFPS) to its energy futures markets April one. An exchange spokeswoman said the change will allow oil traders that do not hold a futures position to initiate, after the exchange closes, a transaction that can subsequently be hedged in the futures market. EFPs, already in effect for platinum futures on NYMEX, are expected to increase the open interest and liquidity in U.S. energy futures, according to traders and analysts. The Commodity Futures Trading Commission approved the rule change in February, according to a CFTC spokeswoman.  
GREECE SAYS IT HAS RIGHT ON AEGEAN OIL DRILLING. Greece, responding to a warning by Turkey against conducting oil activities in the Aegean Sea, said today it had the right to decide where and how to do research or drilling work in the area. A government spokesman said the Greek position was made clear to Turkey's ambassador Nazmi Akiman when he met Greek Foreign Affairs Undersecretary Yannis Kapsis last week. Acting Turkish Prime Minister Kaya Erdem said earlier today Greek activities in the northern Aegean contravened the 1976 Berne Agreement which set the framework for talks on the Aegean continental shelf disputed between Ankara and Athens. The Greek statement today said, "Greece is not prepared to give up even a trace of its sovereignty rights to the seabed. It has been stressed to...Mr Akiman that the decision where or how to drill belongs exclusively to the Greek government." "The Greek government has repeatedly let the Turkish side know that it considers the 1976 Berne protocol as inactive through the fault of Turkey," it said. The Greek statement said Athens was ready to put the continental shelf issue before international courts.  
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS. Opec remains within its agreed output ceiling of 15.8 mln barrels a day, and had expected current fluctuations in the spot market of one or two dlrs, Indonesian Energy Minister Subroto said. He told reporters after meeting with President Suharto that present weakness in the spot oil market was the result of warmer weather in the U.S. And Europe which reduced demand for oil. Prices had also been forced down because refineries were using up old stock, he said. He denied that Opec was exceeding its agreed production ceiling. Asked what Opec's output level was now, he replied: "Below 15.8 (mln barrels per day)." He did not elaborate. He said there appeared to have been some attempts to manipulate the market, but if all Opec members stick by the cartel's December pricing agreement it would get through present price difficulties. He predicted that prices would recover again in the third and fourth quarters of 1987. He also reiterated that there was no need for an emergency Opec meeting. He said Opec had expected to see some fluctuations in the spot price. "We hope the weak price will be overcome, and predict the price will be better in the third and fourth quarters." Refiners, he said, appeared to have used up old stock deliberately to cause slack demand in the market and the price to fall. But Opec would get through this period if members stuck together.  
PEMEX SIGNS 500 MLN DLR JAPAN LOAN FOR PIPELINE. Mexican state oil firm Petroleos Mexicanos (Pemex) signed for a 500 mln dlruntied loan from the Export-Import Bank of Japan to finance its Pacific Petroleum Project, Pemex Japan representative Tito Ayal said. No further details on the loan were immediately available. Ayala told an oil seminar the project, due for completion in 1988, is aimed at improving distribution of oil products in the domestic market, mainly along the Pacific coast. The project consists of a pipeline linking Nueva Teapa on the Gulf of Mexico with Salina Cruz on the Pacific Coast, and construction of the second phase of the Salina Cruz refinery. The project also includes construction of liquified petroleum gas (LPG) storage tanks at Santa Cruz, additional crude oil storage at both ends of the pipeline, an ammonia complex at Lazaro Cardenas on the Pacific Coast and expansion of the infrastructure of the port of Salina Cruz, Ayala said. Pemex will buy 80 mln dlrs worth of foreign equipment and materials for the project, he said. The new pipeline will enable Japan to load Mexico's Maya crude oil at Salina Cruz rather than in the Gulf of Mexico. Pemex will also have some LPG surplus available in Salina Cruz that may help Japan diversify its supply sources of that product, he added.  
MOBIL PLAN TO OPEN PEKING OFFICE, CHINA DAILY SAYS. Mobil Corp <MOB.N> of the U.S. Plans to open an office in Peking to develop oil exploration opportunities in China, the China Daily said. It quoted Mobil president Richard Tucker, currently in Peking, as saying he is optimistic about investment prospects in China and that Peking will continue to encourage foreign private businesses to invest here. It said Mobil bought 73 mln dlrs of crude oil and oil products from China in 1986 and sold it lubricant and fertiliser, but gave no more details.  
MOBIL PLANS TO OPEN OFFICE IN PEKING. Mobil Oil Corp of U.S. Plans to open an office in Peking to develop oil exploration opportunities in China, the China Daily said. It quoted Mobil president Richard Tucker, currently in Peking, as saying he is optimistic about investment prospects in China and that Peking will continue to encourage foreign private businesses to invest here. It said Mobil bought 73 mln dlrs of crude oil and oil products from China in 1986 and sold it lubricant and fertiliser, but gave no more details.  
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS. Opec remains within its agreed output ceiling of 15.8 mln barrels a day, and had expected current fluctuations in the spot market of one or two dlrs, Indonesian Energy Minister Subroto said. He told reporters after meeting with President Suharto that present weakness in the spot oil market was the result of warmer weather in the U.S. And Europe which reduced demand for oil. Prices had also been forced down because refineries were using up old stock, he said. He denied that Opec was exceeding its agreed production ceiling. Asked what Opec's output level was now, he replied: "Below 15.8 (mln barrels per day)." He did not elaborate. He said there appeared to have been some attempts to manipulate the market, but if all Opec members stick by the cartel's December pricing agreement it would get through present price difficulties. He predicted that prices would recover again in the third and fourth quarters of 1987. He also reiterated that there was no need for an emergency Opec meeting. He said Opec had expected to see some fluctuations in the spot price. "We hope the weak price will be overcome, and predict the price will be better in the third and fourth quarters." Refiners, he said, appeared to have used up old stock deliberately to cause slack demand in the market and the price to fall. But Opec would get through this period if members stuck together.  
OIL PRICES RISE ON SAUDI EFFORT. Crude oil prices rallied today, moving over 17.00 dlrs a barrel because of Saudi Arabia's determined effort to support prices, analysts said. "The Saudis and other OPEC nations are jawboning the market, hoping to restore confidence and prices and to do this without another meeting," said Sanford Margoshes, oil analyst with Shearson Lehman Brothers Inc. "But OPEC is not out of the woods yet by a longshot due to seasonal declines in demand and some cheating," he added. Oil industry analysts said Saudi Arabia has led the attempt to get other OPEC members to resist pressures to discount from the official prices agreed to last december. The analysts said that to get others to hold the line, Saudi Arabia pushed hard at the meeting of deputy oil ministers of the Gulf Cooperation Council last weekend and at the Cooperation Council oil ministers' meeting the previous week. The Saudis have also offered to support members having difficulty in selling their oil, analysts said. "They are trying to make sure that no one discounts, and to prevent that, it appears that Saudi Arabia or some other OPEC member will allocate some of their oil sales to help members that lose sales," Margoshes said. He added that the allocations would probably be in the form of loans to be repaid when these nations resume sales. Analysts said this would be useful in keeping in line nations like Qatar, which has had trouble selling oil. But it is also likely that such assistance would be provided to Nigeria which is under pressure to extend discounts. Analysts said that Saudi Arabia, with assistance from OPEC president Rilwanu Lukman, was trying to avoid an emergency OPEC meeting for fear that it would give the appearance that the December pact is falling apart. Daniel McKinley, oil analyst with Smith Barney, Upham Harris and Co said, "both physical and futures markets have been oversold and it only took a small spark to bring on a short covering rally." He believes an Iranian trade mission to Tokyo, which refused discounts to Japanese buyers, brought Japanese refiners into the market to cover their short positions. Oil traders said one japanese refiner came into the market to but 10 cargoes of May Dubai, which sent prices up on Mideast sours, with Dubai trading up to 16.50 dlrs after trading yeterray as low as 15.63 dlrs and then spilled over into the North sea crude oil market. Traders said that there have been persistent rumors today that Japanese buyers are looking to pick up cargoes of Brent for Japan and European trade sources indidate rumors of vessels being fixed to make such shipments. North sea brent today rose over 17.00 dlrs with trades reported as high as 17.05 dlrs, up one dlr. OPEC members' denials that they are producing over their quotas sparked moves to cover short postitions. Indonesian oil minister Subroto said today that OPEC production was below the 15.8 mln bpd quota agreed to last december but he gave no details on OPEC production against claims it was more at least one mln bpd above that level. "The production probably is about their quota level and largely because Saudi Arabia will not discount and canot sell its oil as a result," Margoshes said. Analysts have mixed opinions about the extent of the current rally. Some believe prices can continue to rise if Saudi Arabia and OPEC hold steady in a refusal to discount. But others said that despite the rally today there were still several fundamental factors, including demand, which could cut the rally short. Marion Stewart, an indepedent petroleum economist, said slow growth in the economies of the U.S. and OECD would keep demand for oil slack and he now estimates that demand to rise about 1.4 pct over 1986.  
PANCANADIAN TO SELL NORTH SEA PROPERTIES, UNIT TO WHITEHALL FOR CASH.  PANCANADIAN TO SELL NORTH SEA PROPERTIES, UNIT TO WHITEHALL FOR CASH  
API SAYS DISTILLATE STOCKS OFF 4.4 MLN BBLS, GASOLINE OFF 30,000, CRUDE UP 700,000.  API SAYS DISTILLATE STOCKS OFF 4.4 MLN BBLS, GASOLINE OFF 30,000, CRUDE UP 700,000  
PANCANADIAN TO SELL BRITISH INTERESTS. <PanCanadian Petroleum Ltd> said it agreed to sell its working interest in its North Sea properties and its British unit, Canadian Pacific Oil and Gas of Canada Ltd, to Whitehall Petroleum Ltd, a private British company. PanCanadian, 87 pct-owned by Canadian Pacific Ltd <CP>, said it would receive 1.7 mln British pounds cash (3.5 mln Canadian dlrs) at closing, expected in two to three months. It said the deal is subject to approval by regulators and its partners in the properties, which consist of exploration wells. It will also retain a royalty interest in the properties.  
API SAYS DISTILLATE, GAS STOCKS OFF IN WEEK. Distillate fuel stocks held in primary storage fell by 4.4 mln barrels in the week ended Feb 27 to 127.10 mln barrels from 131.50 mln the previous week, the American Petroleum Institute (API) said. In its weekly statistical bulletin, the oil industry trade group said gasoline stocks fell 30,000 barrels to 252.92 mln barrels from a revised 252.95 mln, while crude oil stocks rose 700,000 barrels to 329.38 mln from a revised 328.68 mln. It said residual fuel stocks fell 380,000 barrels to 38.04 mln from 38.42 mln barrels. API said refinery runs in the week fell to 12.17 mln barrels per day from a revised 12.42 mln and refinery use of operating capacity was 78.1 pct, off from a revised 79.7 pct. Crude oil imports in the week fell to 3.98 mln bpd from a revised 4.22 mln, API added.  
SAUDI SUCCESS SEEN IN CURBING OPEC PRODUCTION. Saudi Arabia will succeed in pressuring other members of the Organization of Petroleum Exporting Countries to stay within their production quotas, said Morgan Stanley Group managing director John Wellemeyer. Wellemeyer, speaking to reporters at an offshore oil engineering conference, also said he expected OPEC nations to attempt to hold prices under 20 dlrs a barrel for several years to keep industrial demand for residual fuel oil strong. "Over the next few weeks I think you'll see a concerted effort by the Saudis to get production down," Wellemeyer said. "The Saudis are committed to that price level (of 18 dlrs a barrel) and are willing to make it happen again," he said. In recent weeks, oil prices fell to the 16 to 17 dlrs a barrel level on market reports of some OPE members producing above their quota, pushing total OPEC production to 15.8 mln barrels per day. But prices rebounded today, with April U.S. crude prices up about one dlr to over 17 dlrs a barrel on a belief Saudi Arabia is attempting to curb OPEC output. Wellemeyer said that sharp declines in U.S. oil production could push demand for OPEC oil above 20 mln barrels per day as early as 1989 and up to 24 mln barrels per day by 1993. Although the projected increases in demand for OPEC oil should strengthen world prices, Wellemeyer said he believed the organization would hold its official price below 20 dlrs a barrel for some time to prevent residual fuel users from switching to natural gas supplies. The interfuel swing market accounts for about eight mln barrels a day, or 18 pct of the world demand for oil.  
SUN RAISES CRUDE OIL POSTINGS ONE DLR ACROSS BOARD. WTI NOW 17.00 DLRS/BBL.  SUN RAISES CRUDE OIL POSTINGS ONE DLR ACROSS BOARD. WTI NOW 17.00 DLRS/BBL  
ENERGY/CALIFORNIA OIL PRODUCTION. Drilling for oil in California is likely to continue at last year's sharply reduced levels despite recent gains in crude oil prices, industry analysts said. Because much of the crude oil in California fields is thick, heavy and expensive to extract, oil prices would have to increase to near 1985's levels before any significant recovery is seen in drilling, they said. "Companies will probably only drill their best prospects," said John Curti, an analyst with Birr Wilson Securities Inc. Few new wells now are being drilled. Only 33 rigs, about one-quarter of the total available, were drilling for oil onshore in California last week, compared to about 70 last year, said Bill Bolster of Munger Oil Information Services, which tracks California drilling activity. "It's in the dregs right now," said Bolster of the state's drilling activity. Current prices are not enough to justify increased drilling, said Ed Malmgreen of the California Independent Producers Association. While an Organization of Petroleum Exporting Countries pact to curb production boosted oil prices early this year, prices eventually fell. Prices for California's marker grade, Line 63 blend, have slumped about 20 pct in the last month to 14 dlrs from a high of about 17 dlrs. More than half of California's oil comes from stripper wells, those producing less than 10 barrels a day, and that much of that oil costs between 18 and 25 dlrs a barrel to extract, Malmgreen said. "It's not unusual for a stripper well to cost 18 dlrs," Malmgreen said. Many stripper wells along the southern California coast produce eight times as much water as crude oil, and inland wells frequently require the use of steam injection to spur extraction of the thick, heavy oil, he said. The outlook for future production in California is clouded by a lack of exploratory drilling now, analysts said. In the heart of California's oil patch, Kern County, which produces about two-thirds of the state's oil, exploratory drilling has slowed to a crawl. Only 55 exploratory wells were drilled in Kern County in 1986, compared to 137 in 1985, according to David Mitchell of the state energy commission. So far this year only five exploratory wells have been drilled. "I don't think they'll even get to what they did last year," Mitchell said. No pickup in exploratory drilling is likely for the rest of the decade, Mitchell said. Along with the fall in drilling has come a decrease in the number of producing wells and overall production. Between February and October of 1986, the number of producing oil wells in California fell 14 pct to 43,521 from more than 50,000, said Bill Guerard of the California Energy Commission. In line with that decrease, California's crude oil output fell about 10 pct last year due to low oil prices and is expected to remain at that lower level, analysts said. Between February and October 1986, California's crude oil production slipped from an all-time high of 1.185 mln barrels per day to 1.066 mln bpd, Guerard said. Total estimated crude oil production in California for 1986 was 408 mln bbls, compared with 424 mln bbls in 1985 and 405 mln bbl in 1983, according to the California Department of Conservation. "Production in 1987 will probably hold around 1986 levels," Guerard said.  
IRANIAN OIL MINISTER DUE IN ALGERIA ON FRIDAY. Iranian Oil Minister Gholamreza Aqazadeh is expected here on Friday for talks with his Algerian counterpart Belkacem Nabi, the official Algerian news agency APS said today. Aqazadeh, who will be accompanied by a large delegation, will have talks on bilateral relations in the field of energy and exchange views with Algerian officials on the current world energy situation, it said.  
U.K. OIL INDUSTRY SAID NOT PERMANENTLY DAMAGED. The U.K. Offshore oil industry has suffered from last year's collapse in oil prices but should not sustain any permament damage, Minister of State for Energy Alick Buchanan-Smith said. The drilling, diving and supply vessels sectors had been most affected, Buchanan Snith told the House of Commons energy committee. He noted, however, that oil companies were still spending six mln stg a day to maintain North Sea production. He added that a report by the manpower services committee which said 14,000 jobs were lost in the industry in 1986 should be seen in the context of a total workforce of 300,000. Prices of North Sea Brent-grade crude dipped to a low of 8.50 dlrs a barrel last July from a peak of over 30 dlrs the previous November. They recovered to around 18 dlrs a barrel after last December's OPEC meeting and Brent traded today around 17.15 dlrs. Buchanan-Smith said the U.K. Has no intention of adopting OPEC style quotas, noting that Britian is an oil-consuming as well as an oil-producing nation.  
TEXAS OIL REGULATOR CALLS FOR STATE TAX BREAKS. Texas Railroad Commissioner James Nugent, saying that the ailing oilpatch cannot wait for Congress to act, today urged Texas state lawmakers to adopt incentives to find new oil reserves and to exempt severance taxes on oil produced from stripper wells. Nugent said in a speech to the Texas house of representatives that the state must take the initiative in molding U.S. energy policy and finding new ways to assist troubled oil producers. His proposal to revitalize Texas' oil industry would exempt stripper wells that produce 10 barrels of oil or less each day from the state's 4.6 pct severance tax. He said that the majority of Texas' oil wells fall within the stripper well category and a price swing of two to three dlrs a barrel can be crucial in determining if the well remains in production. Nugent also called for state lawmakers to exempt new wildcat wells from the state severance tax for up to five years as a financial incentive to explore for new oil reserves. Secondary and tertiary oil production, expensive methods of production that inject water or gas into the ground to recover oil, should also be exempted from the severance tax, Nugent said. His plan would exempt existing secondary and tertiary wells that produce at a rate of less than three barrels a day for three years, or until the price of oil reaches $25 a barrel. "We've been sitting back and waiting on two federal administrations to develop a coherent energy policy for the nation to follow. I say we have waited long enough," Nugent said. "In other words, let's tell Washington to either lead, follow, or get out of the way." Nugent said that the financial losses to the state treasury by exempting marginal oil production from state severance taxes would be more than made up by stimulating new business for the oil supply and service industry.  
MURPHY RAISES CRUDE OIL POSTED PRICES ONE DLR/BBL. WTI TO 17.00 DLRS TODAY.  MURPHY RAISES CRUDE OIL POSTED PRICES ONE DLR/BBL. WTI TO 17.00 DLRS TODAY  
SOUTHLAND <SLC> UNIT RAISES CRUDE PRICES. Southland Corp's Citgo Petrleum Corp said it raised the contract price it will pay for all grades of crude oil by one dlr a barrel, effective today. The increase brings Citgo's posted price for West Texas Intermediate to 17.00 dlrs a bbl. West Texas Sour is also now priced at 17.00 dlrs/bbl, and Light Louisiana South is posted at 17.35 dlrs/bbl. On February 25 Citgo lowered its crude postings 50 cts to 1.50 dlrs per bbl, and cut WTI one dlr to 16.00.  
OPEC STICKING FIRM ON OFFICIAL PRICES - SUBROTO. OPEC countries are all sticking firmly to official crude oil prices but the volatility of spot prices is likely to continue into the third quarter, Indonesian Minister of Mines and Energy Subroto told Reuters. Subroto, attending a Pacific Energy Cooperation conference, blamed recent rapid spot price changes on unbalanced supply and demand. "If we stick to the production limitation, the third quarter will be in better balance." He said the market is in a period of transition while the impact of OPEC's December agreement to cut output and fix prices at an average 18 dlrs a barrel is worked through. Asked whether OPEC members of the Gulf Cooperation Council (GCC) had any concrete proposals to help Qatar sell its crude oil in the face of strong resistance to its official prices, Subroto said: "Apparently they have taken care of that." "They (the GCC) meet very often among themselves. I think they'll help each other," he said. Subroto said that as he was not a member of OPEC's Price Differentials Committee he did not know why the meeting had been postponed from its scheduled April 2 date. "Maybe they find it is better not to have the meeting because ... Everyone is sticking to official prices," he said.  
PAPUA NEW GUINEA PLANS RESOURCES INVESTMENT AGENCY. The Papua New Guinea Government will establish a public corporation to invest in resources projects, Minerals and Energy Minister John Kaputin said. "We intend to provide a means through which less privileged individuals can become part owners and beneficiaries from the development of mining and petroleum projects," he told Parliament. Existing policy allowing the state up to 30 pct equity in major mining projects and 22.5 pct in oil and gas projects would be maintained, he said. The planned agency could take over the state's equity in current developments. Kaputin said Papua New Guinea was experiencing a boom with exploration companies spending about 60 mln kina annually on about 150 mining and 23 petroleum projects. "The Government is determined to ensure that Papua New Guinean ownership in minerals and petroleum projects increases in an orderly way," he said. Kaputin did not say when the corporation would be established or exactly what form it would take, but said the government would study whether it should be directly involved in exploration or development.  
EARLY MARCH OPEC OUTPUT SEEN WELL BELOW CEILING. OPEC crude oil output in the first few days of March was running at about 14.7 mln bpd, down from a 16 mln bpd average for February and well below the 15.8 mln bpd ceiling the group adopted in December, a Reuter survey shows. The figures were polled by Reuters correspondents from oil traders, industry executives and analysts in Europe, the Middle East, Africa, Latin America and Asia. They back recent statements by OPEC ministers that the group is producing within its ceiling to support the return to a fixed price system, which came into effect last month. OPEC output for the whole of February was about 200,000 bpd above the ceiling, largely because of overproduction by the United Arab Emirates and Kuwait, the figures show. The UAE, together with the much smaller producer Ecuador, was also producing above quota in the first days of March, the survey reveals. But such overproduction was compensated for by a sharp fall in Saudi Arabian output, together with Iran"s inability to export as much as its quota allows. Iraq rejected its OPEC quota of 1.466 mln bpd and produced 1.75 mln bpd in February and early March, the figures showed. Saudi output -- excluding movements into stocks -- fell to 3.1 mln bpd in early March from 3.5 mln bpd in February, against a 4.133 mln bpd quota. The Saudi figures include a 200,000 bpd share of Neutral Zone production. Kuwait, which has consistently denied quota violations, was estimated to be pumping 1.4 mln bpd in February and 1.15 in early March -- both figures including 200,000 bpd as its share of Neutral Zone output -- against its 948,000 bpd quota. Reports of customer resistance to fixed prices set by some OPEC states were reflected in output from Qatar and Nigeria, both substantially under quota in February and early March. Qatar's February output was 230,000 bpd, and this fell to 180,000 bpd in early March compared with its 285,000 bpd quota. Industry sources say Japanese buyers are resisting Qatar"s prices and Gulf Arab oil states have pledged to make up for any shortfall in sales which a fellow Gulf state suffers. Nigeria's early March output was about one mln bpd, down from 1.14 mln bpd in February and its quota of 1.238 mln bpd. Industry sources say Nigeria's customers believe its Bonny grades are overpriced compared with compatible Brent crudes from the U.K. North Sea. Country-by-country production figures are as follows, in mln bpd - COUNTRY        CURRENT        FEBRUARY    QUOTA ALGERIA        0.64           0.64        0.635 ECUADOR        0.26           0.26        0.210 GABON          0.15           0.15        0.152 INDONESIA      1.16           1.16        1.133 IRAN           1.80           2.20        2.255 IRAQ           1.75           1.75        1.466 KUWAIT         1.15           1.40        0.948 LIBYA          0.95           0.95        0.948 NIGERIA        1.00           1.14        1.238 QATAR          0.18           0.23        0.285 SAUDI ARABIA   3.10           3.50        4.133 UAE            1.10           1.15        0.902 VENEZUELA      1.50           1.50        1.495 TOTAL          14.7           16.0        15.8 Reuter  
DIAMOND SHAMROCK RAISES CRUDE POSTED PRICES ONE DLR, EFFECTIVE MARCH 4, WTI NOW 17.00 DLRS/BBL.  DIAMOND SHAMROCK RAISES CRUDE POSTED PRICES ONE DLR, EFFECTIVE MARCH 4, WTI NOW 17.00 DLRS/BBL  
DIAMOND SHAMROCK <DIA> RAISES CRUDE OIL POSTINGS. Diamond Shamrock said it raised its posted prices for all grades of crude oil one dlr a barrel, effective yesterday. The one dlr increase brings West Texas Intermediate, WTI the U.S. benchmark crude, to 17.00 dlrs a bbl, the company said. Diamond Shamrock joined Sun Co, Coastal, Citgo and Murphy Oil in raising crude oil posted prices one dlr a barrel yesterday.  
OPEC SAYS FEBRUARY OUTPUT UNDER CEILING. OPEC output in February was "well below" the 15.8 mln bpd ceiling it set in December and all countries are strictly adhering to their quotas, the OPEC news agency Opecna quoted an OPEC secretariat official as saying. The official was quoted as saying that lower output was the result "of member countries' firm determination to defend the organisation's official price of 18 dlrs per barrel, and to refrain from selling any quantity below that price." The unnamed official was further quoted as saying that no OPEC meeting was foreseen before the next biannual OPEC session planned to start on June 25. The official gave no figure for February output. The statement said only that "the reduction in total supplies, namely actual exports of crude oil and products, plus local deliveries in member countries, is even more pronounced as those supplies fell very noticeably during that month." "No matter what the pressure on member countries by lifters to align the official selling price to the ongoing market price, member countries are, without exception, strictly adhering to the official selling price in spite of the financial hardship this may entail," the statement said. "The very recent improvement in the price structure is an indicator of such determination by the organization to stick to the official selling price," the statement said. Free spot market prices rose from around 14.50 dlrs a barrel in early December last year to near OPEC's official levels towards the end of the year, after the OPEC pact. There has been oil industry speculation that OPEC might have to hold an extraordinrary meeting prior to its scheduled June session to discuss reports of overproduction by some states and strains on the differential matrix, which prices each OPEC crude according to its quality and distance from main markets. The official said in the statement that no such emergency session was scheduled "because of member countries' firm determination to defend the price (system)" agreed in December. Opec"s differential committee was to have met in Vienna starting April 2 but this session has been postponed, with no new date set, according to an official of the United Arab Emirates, which chairs the seven-state body. Other members are Algeria, Kuwait, Saudi Arabia, Libya, Nigeria and Qatar.  
MARATHON RAISES CRUDE POSTED PRICES 50 CTS A BBL, EFFECTIVE TODAY, WTI AT 17 DLRS/BBL..  MARATHON RAISES CRUDE POSTED PRICES 50 CTS A BBL, EFFECTIVE TODAY, WTI AT 17 DLRS/BBL.  
REPORT DUE ON OIL IMPORTS AND NATIONAL SECURITY. A presidential commission that has been studying oil imports, including their effect on national security, is to to make its report soon, the White House said. Spokesman Marlin Fitzwater said the panel, set up last October to examine U.S. oil import needs, would make its report soon, probably within the next few weeks. He said National Security Adviser Frank Carlucci "will wait until that report is in and then see if there is any special action needed to be taken in the national security area to implement it."  
EGYPTIAN 1986 CRUDE OIL OUTPUT DOWN ON 1985. Non-Opec Egypt produced 40.3 mln tonnes (about 295 mln barrels) of crude in 1986 against 44.3 mln tonnes (about 323 mln barrels) in 1985, according to official figures released today by the Egyptian General Petroleum Corp. (EGPC). Officials say Egypt can produce up to one mln bpd per day, but production was cut when world prices plunged last year. In an attempt to help OPEC stabilize the world market, Egypt cut its 1987 production target of 940,000 bpd to its current output of 870,000 bpd. Egypt, which exports a third of its output, currently sells its top Suez and Ras Bahar blends for 17.25 dlrs a barrel.  
OPEC PRESIDENT SAYS OUTPUT WELL BELOW CEILING. Opec Conference President Rilwanu Lukman said the group was producing well below the 15.8 mln bpd ceiling it set in December, partly because liftings had been delayed or postponed by customers unwilling to pay fixed Opec prices. Lukman, during a brief visit to London on his way home from Jamaica, told Reuters in a telephone interview that in February, Opec had underproduced partly because members were strictly abiding by production quotas and partly because they were resisting the temptation to sell at discounts to official prices of around 18 dlrs a barrel. "We are determined to stand firm by the (December) accord," he said. "I have spoken to every other Opec minister and they are committed to making the accord work," he said. Lukman gave no specific figures for February output. He said the Opec secretariat in Vienna was finalizing these figures. Told of a Reuters survey published today which estimated that Opec output so far this week was below 15 mln bpd, he said; "That could well be correct." Opec"s news agency Opecna today issued a statement saying group output was "well below" its ceiling in February. But it gave no figures. But one source close to Opec indicated that February output may have been between 15.3 and 15.5 mln bpd. The Reuter survey estimated Opec February output at around 16 mln bpd. Opec agreed in December to cut output by 7.25 pct to 15.8 mln bpd and to return to fixed prices starting February 1. Lukman said Qatar, Nigeria, Saudi Arabia and Iran had all produced in February below their Opec quotas. Iraq, which said it would not honour its 1.466 mln bpd quota under the December pact, had produced less than had been anticipated, he said. Lukman said that some industry reports "may be correct" that in February, Nigeria propuced 75-100,000 bpd below its 1.238 mln bpd quota, Saudi Arabia 500,000 bpd less than its 4.133 mln allocation and Qatar 20 to 30 pct under its 285,000 bpd quota. He said that sweet crudes such as those produced by his country were coming under price pressure because they were currently officially priced above sweet North Sea grades and the United States" West Texas Intermediate (WTI) crude. However, he said Opec in December had anticipated that demand would be slack at this time of year for seasonal reasons and expected the market to firm in two to three weeks. "We have to be patient for two or three weeks. The market is now firming on actual fundamentals," he said, adding that he expected it to go "up and up" even beyond official prices after early April. This is when, traditionally, there is more demand for gasoline-rich crudes such as Nigeria"s. The Opec President said producers such as Kuwait, Venezuela and Indonesia were having less problems with output than producers like his own country because they exported oil products. Also, some of Venezuela"s heavy grades were outside the Opec pricing system, he said. Lukman said that if refiner-buyers, now refusing to lift some Opec oil at official prices, instead used their own stocks and ran them down to "dangerous levels," they would eventually have to buy Opec oil. "When they realise it is not a free-for-all (in the market) they will realise they should buy now instead of paying more later on," he said. Lukman, asked about industry reports that Nigeria was being pressured by equity producers for better terms, said it was important to know that terms with them were negotiable, flexible and under constant review, not only when the market seemed weak. He said that so far, no meeting of the seven-nation ministerial differentials committee had been scheduled and that such a meeting, now twice-postponed, was not a high priority for Opec at the moment. "At this time, we have to get our priorities right," he said. "The most important thing now is ensuring that the accord is working, not dealing with a differential of cents between grades." But if any Opec member raised concerns or objections over the differential system, a meeting would be called, he said.  
CONFIDENCE IN OPEC FIRMS U.S. ENERGY FUTURES. Renewed confidence in OPEC's ability to limit production helped U.S. energy futures settle above yesterday's closing prices, according to analysts. They also said the heating oil contract found additional support from a short-covering rally on the close. April crude closed 24 cts higher to 17.75 dlrs. April heating oil was 1.47 cts higher to 47.91 cts a gallon. "Most traders expected follow through profit-taking from yesterday but the market found suport from bullish reports that OPEC is producing within its quota," said Simon Greenshields, a vice president with Morgan Stanley and Co Inc. News today, including OPEC President Rilwanu Lukman statement that OPEC February production did not exceed its official quota of 15.8 mln barrels per day, helped bouy prices, traders said. A Reuter survey found OPEC production in early March was 14.7 mln bpd. In addition to short-covering, heating oil found support from traders buying it against sales of gasoline and crude, as well as from expectations for continued drawdowns in stocks as refiners shut down for maintenance, traders said. Unleaded gasoline for April finished 0.55 cent higher to 51.24 cts a gallon.  
GREECE REPEATS IT CAN DECIDE ON AEGEAN DRILLING. Greece, replying to a warning from Turkey that it will stop Athens from seeking oil in the Aegean Sea, repeated today that it has an exclusive right to decide where or when to drill in the area. A government spokesman said in a statement that if Ankara believed Greece was contravening international law, it could bring the issue before the courts. The spokesman was responding to a statement by Turkish Foreign Ministry spokesman Yalim Eralp that Ankara would take action to stop Greece's oil activities beyond its territorial waters as they were a violation of the 1976 Berne accord.  
IEA SAYS OPEC FEBRUARY CRUDE OUTPUT 16.1 MLN BPD. OPEC produced an average 16.1 mln barrels per day (bpd) of crude oil in February, down from 16.5 mln the previous month and an overall 17.3 mln bpd in fourth quarter 1986, the International Energy Agency said. A few OPEC countries last month exceeded the production quotas set at their last conference in December, but liftings were reduced from several countries, it said in its latest monthly oil market report. These cutbacks were due in part to buyer resistance to fixed prices, introduced from February 1, particularly for fixed volumes over an extended period. It gave this breakdown for OPEC crude output, in mln bpd FOURTH QTR 1986  JANUARY 1987  FEBRUARY 1987 SAUDI ARABIA    4.9              3.7           3.8 IRAN            1.6              2.2           1.9 IRAQ            1.6              1.6           1.7 UAE             1.3              1.2           1.2 KUWAIT          1.0              1.0           1.0 NEUTRAL ZONE    0.5              0.4           0.4 QATAR           0.3              0.3           0.2 NIGERIA         1.3              1.2           1.2 LIBYA           1.0              1.0           1.0 FOURTH QTR 1986  JANUARY 1987  FEBRUARY 1987 ALGERIA         0.6              0.6           0.6 GABON           0.1              0.2           0.2 VENEZUELA       1.6              1.6           1.6 ECUADOR         0.2              0.2           0.2 INDONESIA       1.3              1.2           1.2 TOTAL           17.3             16.5          16.1 The IEA said while Saudi production stayed below its quota of 4.133 mln bpd, actual sales might exceed output due to Norbec stock disposals. Contracts for Saudi crude have been signed, but it is understood they have much leeway in required liftings. The report said the reduction in Iraqi air attacks on Iranian export facilities allowed Iran's output to reach 2.2 mln bpd in January, but buyer resistance to fixed prices apparently cut February production. It said Iraqi exports are about 1.0 mln bpd through the Turkish pipeline, 0.1-0.2 mln by truck through Jordan and 0.2-0.3 mln via the Saudi pipeline to Yanbu. Internal consumption is some 0.3 mln bpd. The IEA estimated total non-communist world oil supply in February at 45.0 mln bpd, down from 45.4 mln in January and 47.0 mln in the fourth quarter. The February world supply figure is made up of 16.1 mln bpd OPEC crude production, 1.4 mln bpd OPEC natural gas liquids (ngls), 16.6 mln bpd OECD crude and ngls, 8.3 mln bpd other developing countries' crude and ngls, net trade of 1.1 mln bpd with centrally planned economies, 0.5 mln bpd of non-conventional crudes (such as tar sands and oil from coal) and 1.0 mln bpd from processiing gains. Within the OECD, preliminary Norwegian data show record 1.06 mln bpd output in January, with lower production expected in February in accordance with government curtailments of approximately 80,000 bpd, announced in support of OPEC.  
PEMEX LOWERS FEBRUARY FAR EAST CRUDE OIL PRICES. The Mexican state oil company Petroleos Mexicanos (PEMEX) said its Far East customers would be charged 17.25 dlrs per barrel for Isthmus crude in February and 14.45 dlrs for the heavier Maya. Pemex said this was 32 cts less than January Isthmus and 15 cts less than January Maya. Far East customers, primarily Japan which buys an average 180,000 barrels per day of which 150,000 is Isthmus, pay retroactively while European and U.S. clients are charged per delivery.  
PERMIAN <PBT> RAISES CRUDE PRICES. Permian Corp said that effective march 5 it raised its posted prices for crude oil 50 cts a barrel. The raise brought its posted prices for West texas Intermediate up by 50 cts to 17.00 dlrs a barrel. West Texas Sour was also raised by 50 cts to 17.00 dlrs a barrel. A Permian spokesman said that the South Louisiana sweet posted prices was also raised 50 cts a barrel to 17.35 dlrs.  
ECUADOR SAYS SUSPENDS OIL EXPORTS DUE EARTHQUAKE. Ecuador today suspended its crude oil exports indefinitely due to an earthquake last night that damaged pumping and crude transport installations, an Energy and Mines MInistry statement said. It said the state oil firm Corporacion Estatal Petrolera Ecuatoriana (CEPE) notified foreign customers that it was declaring force majeure on its crude exports due to the tremor. Ecuador"s OPEC oil output quota is 210,000 barrels per day (bpd). A senior energy ministry official said that one pumping station at El Salado on Ecuador's main pipeline was damaged. He also said an 180 metre section of the pipeline attached to the bridge over the Aguarico river collapsed. The pumping station was about 20 km from the Reventador volcano, near the epicentre of the quake, which Ecuadorean seismologists said registered six on the 12-point international Mercalli scale. The Aguarico bridge was also close to the volcano, he said. The quake struck northern Ecaudor and southern Colombia, according to Ecuadorean officials. No injuries were reported.  
COLOMBIAN OIL EXPORTS NOT AFFECTED BY QUAKE. Colombian oil installations were not damaged by an earthquake which shook Ecuador and southern Colombia last night and there are no plans to suspend exports, a spokesman for the state-run oil company Ecopetrol said. He said no damage was reported, unlike in Ecuador where indefinite force majeure was declared on crude exports. Colombia currently produces about 360,000 barrels per day (bpd) of crude. Exports in january totalled 123,000 bpd. The quake, which in Colombia measured between 6.5 and seven on the 12-point international Mercalli scale, caused panic among residents but no injuries were reported.  
CRUDE OIL PRICES UP AS STOCKS, OUTPUT FALL. U.S. crude oil prices rose above 18 dlrs a barrel this week and industry analysts said the price could rise another dollar as inventories fall. "OPEC is keeping its production down, and in the cash market there is tight supply of crude with short transportation time to major refining centers," said Daniel McKinley, oil analyst with Smith Barney, Harris Upham and Co. "That could send prices 50 cts to a dollar higher," he added. The U.S. benchmark crude West Texas Intermediate rose to 18.15 dlrs a barrel today, a rise of 1.50 dlrs this week. The rally in oil prices this week came after prices fell in February more than two dlrs from its high of 18.25 dlrs a barrel. "Oil traders were pulling prices down on the assumption that oil stocks were building and OPEC was producing well above its 15.8 mln bpd quota, but now both of those assumptions have come under question," McKinley said. Yesterday the International Energy Agency in its monthly report said that oil stocks in the OECD area, or in industrialized nations, were drawn down by 1.3 mln bpd during the first quarter of this year. IEA estimates that the draw in oil stocks during the first quarter of this year will come largely from oil companies whose inventory levels by April one will be an estimated 326 mln tonnes, or about 74 days consumption. Industry analysts also said the estimate of a 3.5 mln bpd draw in stocks made by Shell Chairman Peter Holmes yesterday fed speculation that other major companies were destocking. Traders said the destocking has come about as a result of a so-called buyers strike, which kept refiners from buying officially priced OPEC oil in an effort to get the organization to offer discounts to the official price. "This struggle between the companies and OPEC is the ultimate game of chicken but it will be resolved relatively soon. I would imagine by about the middle of the month (March)," the general trading manager of an international oil company told Reuters in a telephone interview. For its part OPEC has moved to win this game by cutting excess supplies from the market by a reduction of its own output, traders said. A Reuter survey estimates OPEC output to be 14.7 mln bpd this week. Also, an earthquake in Ecuador yesterday led it to suspend oil exports indefintiely and force majeure its shipments. "This will reduce short-haul availabilities by about 250,000 bpd almost immediately and the longer the suspension continues, the larger the draw in stocks will be for companies expecting it to be there," McKinley said. International oil traders said that other short-haul crudes, such as North Sea Brent, were also scarce because Asian refiners bought the oil after absorbing a lot of the readily available Mideast crudes earlier this week. If this pattern continues then oil companies will bid up the price of oil as they purchase for their refineries, trading managers at several companies told Reuters. But there were skeptics who said they wondered how long OPEC can retain its unity if buyer resistance continues. Stephen Hanke, chief economist at Friedburg Commodity Management, said OPEC production was lower "because of the Saudi cut (to 3.1 mln bpd) and this could spell trouble if it gives other members an incentive to exceed their quotas." He added, "The Saudis will be picking up the tab for other members who produce over their quota, and the drain on the Saudis will continue, forcing them to cut output maybe as low as 2.5 mln bpd to support the 18 dlrs average price," he added. There are also signs of some OPEC crudes being sold in the spot market at below OPEC official prices, traders said. Oil traders said Nigerian Brass River sold for delivery into the U.S. Gulf at a price related to North Sea brent, which traded this week at 17.60 dlrs, far below the official price of 18.92 dlrs for the similar quality Bonny Light. Iranian oil is also surfacing in the U.S. Gulf and the Far East at reported discounts to its 17.50 dlrs official price. "There is a lot of oil priced on government-to-government deals, which are below official prices and this is probably being resold," one international trader said.  
IRANIAN OIL MINISTER ARRIVES IN ALGERIA. Iranian Oil Minister Gholamreza Aqazadeh arrived in Algiers at the head of a large delegation for talks on stabilizing oil prices, the official news agency APS said. In a brief arrival statement, he said Iran and Algeria were engaged in "continuous and stronger cooperation" on the world petroleum market and had "deployed considerable efforts to stablise petroleum prices." He was greeted on arrival by Belkacem Nabi, the Algerian Minister of Energy, Chemical and Petro-Chemical Industries.  
IRAQ-TURKEY OIL PIPELINE CUT BY LANDSLIDE. Turkey oil pipeline near the southern town of Adana after it was cut by a landslide, the Hurriyet and Anatolian news agencies said. Little oil was lost in the landslide Friday night because taps on the one mln bpd line were switched off after the accident, they said. The pipeline, which carries oil for Turkey and other customers from Iraq's Kirkuk field to the Yumurtalik terminal on the Turkish Mediterranean coast, is Iraq's main oil outlet.  
ECUADOR TO EXPORT NO OIL FOR FOUR MONTHS, OFFICIAL. The suspension of Ecuador's crude oil shipments after an earthquake cut an oil pipeline will last at least four months, a senior Energy Ministry official said. The official said Ecuador could resume exports after repairing a 40 km section of the 510 km pipeline, which links jungle oil fields at Lago Agrio to Balao on the Pacific coast. It would take about 100 mln U.S. Dlrs to repair the pipeline, the official, who did not want to be named, told Reuters. Ecuador had enough oil to meet domestic demand for about 35 days and would have to import crude to supplement stocks. The earthquake last Thursday night registered six on the 12-point international Mercalli scale. The damage to the pipeline was a severe economic blow to Ecuador, where oil accounts for up to two-thirds of total exports and as much as 60 pct of government revenues. Financially pressed Ecuador, a member of the Organisation of Petroleum Exporting Countries (OPEC), was recently pumping about 260,000 barrels per day (bpd) of crude, about 50,000 bpd above the output quota assigned by the cartel, another Energy Ministry spokesman said. Last year, it exported an average of 173,500 bpd, according to the central bank. However, Ecuador might build an emergency 25 km pipeline, costing 15 to 20 mln dlrs, to hook up with a Colombian pipeline, the first official said. He estimated it could take about 60 days to build. Ecuador, squeezed by the slide in world oil prices in 1986, had only 138 mln dlrs in net international reserves at the end of January, about equal to one month's imports. It suspended interest payments in January on 5.4 billion dlrs owed to about 400 private foreign banks. The country's total foreign debt is 8.16 billion dlrs, the eighth largest in Latin America. In Caracas, President Jaime Lusinchi said Venezuela would loan five mln barrels of crude to Ecuador over the next three months to make up for losses from damage to the pipeline. Ecuador asked for the loan to guarantee domestic supplies and would ship an equivalent volume back to Venezuela in repayment in May, Lusinchi said. A commission headed by Venezuelan Investment Fund Minister Hector Hurtado and including representatives from the interior and defence ministries and the state oil company Petroleos de Venezuela will travel to Ecuador Tuesday to evaluate and co-ordinate an emergency relief program, he said.  
IRAN SELLING DISCOUNTED CRUDE, JAPAN TRADERS SAY. Japanese customers have bought nearly six mln barrels of crude oil from the National Iranian Oil Company (NIOC) at a substantial discount to the official price, and Western traders have received even larger discounts, Japanese traders involved in the transactions told Reuters. NIOC has sold its crude for March shipment to Japanese customers with different formulas. One company has bought 800,000 barrels of Iranian Heavy at a straight discount of 30-35 cents below the official price, the sources said. Other deals have been fixed with prices linked to Oman and Dubai spot prices less a discount, they said.  Iran's discounted sales have not, however, managed to reverse the bullish tone in the crude oil and products spot markets, oil traders said. Market sentiment is being influenced more by the colder weather in Europe, and reports that OPEC's February output was below its self-imposed quota of 15.8 mln barrels per day. Firmer gas oil on the London futures, and more bullish sentiment on the New York Mercantile Exchange futures market are supporting spot price levels, they said.  Another Japanese trading house has paid the official price but through a processing arrangement will effectively receive a discount, the sources said. "It's just disguised cheating," one Japanese trader said. The sources said only one Japanese company had paid the official price for Iranian oil. It has purchased 1.5 mln barrels of Iranian Heavy for April shipment for refining in Singapore. They said about nine VLCCs of Iranian crude have been sold to Western traders with pricing based 60 pct on the official price and 40 pct on spot prices, or with part of the price related to processing arrangements.   
AMOCO REPORTS SOUTH CHINA SEA OIL FIND. The U.S. <Amoco Petroleum Corp> has reported an offshore oil find at its Pearl River basin concession in the South China Sea, the New China News Agency said. It said the Liu Hua 11-1-1 A well produced at around 2,240 barrels per day at a depth of 305 metres. The news agency said Amoco plans to drill a second well in the area this year, but gave no further details.  
ECUADOR TO EXPORT NO OIL FOR 4 MONTHS, OFFICIAL. The suspension of Ecuador's crude oil shipments after an earthquake cut an oil pipeline will last at least four months, a senior Energy Ministry official said. The official said Ecuador could resume exports after repairing a 40 km section of the 510 km pipeline, which links jungle oil fields at Lago Agrio to Balao on the Pacific coast. It would take about 100 mln U.S. Dlrs to repair the pipeline, the official, who did not want to be named, told Reuters. Ecuador had enough oil to meet domestic demand for about 35 days and would have to import crude to supplement stocks. The earthquake last Thursday night registered six on the 12-point international Mercalli scale. The damage to the pipeline was a severe economic blow to Ecuador, where oil accounts for up to two-thirds of total exports and as much as 60 pct of government revenues. Financially pressed Ecuador, a member of the Organisation of Petroleum Exporting Countries (OPEC), was recently pumping about 260,000 barrels per day (bpd) of crude, about 50,000 bpd above the output quota assigned by the cartel, another Energy Ministry spokesman said. Last year, it exported an average of 173,500 bpd, according to the central bank. However, Ecuador might build an emergency 25 km pipeline, costing 15 to 20 mln dlrs, to hook up with a Colombian pipeline, the first official said. He estimated it could take about 60 days to build. Ecuador, squeezed by the slide in world oil prices in 1986, had only 138 mln dlrs in net international reserves at the end of January, about equal to one month's imports. It suspended interest payments in January on 5.4 billion dlrs owed to about 400 private foreign banks. The country's total foreign debt is 8.16 billion dlrs, the eighth largest in Latin America. In Caracas, President Jaime Lusinchi said Venezuela would loan five mln barrels of crude to Ecuador over the next three months to make up for losses from damage to the pipeline. Ecuador asked for the loan to guarantee domestic supplies and would ship an equivalent volume back to Venezuela in repayment in May, Lusinchi said. A commission headed by Venezuelan Investment Fund Minister Hector Hurtado and including representatives from the interior and defence ministries and the state oil company Petroleos de Venezuela will travel to Ecuador Tuesday to evaluate and co-ordinate an emergency relief program, he said.  
PETRO-CANADA TO DRILL TWO TERRA NOVA TEST WELLS. Petro-Canada, Canada's state-owned oil company, said it will drill two delineation wells this summer at the Terra Nova oil field offshore Newfoundland. Evaluation of test results and preliminary engineering work should put Petro-Canada in a position to propose a development plan for the Terra Nova field in 1988, the company said. Depending on time required for regulatory approvals, construction could begin in 1989, with first oil production as early as 1991, Petro-Canada said. "We have a high degree of confidence that the western portion of the (Terra Nova) field contains at least 11 mln cubic meters of recoverable oil, or more than 70 mln barrels, and that we could produce it economicly using a floating production system," Petro-Canada said. The Terra-Nova field, lying 350 kilometers east of St. John's and 35 kilometers southeast of Hibernia field, was discovered by Petro-Canada in 1984. "We've had encouraging results from the eastern portion of the field, and we hope this summer's drilling will prove up additional reserves there," the company said. Petro-Canada believes Terra Nova field is a good commercial prospect and the company wants to move some of those resources towards development so it can start generating a return on investments, Petro-Canada said. Petro-Canada, which will act as operator of the two wells, has a 75 pct interest in the western portion of Graven block of the Terra Nova field and a 26 pct interest in the field's East Flank block, a company spokesman said later. Other field participants include Canterra Energy Ltd, Mobil Oil Canada Ltd, Gulf Canada Resources Inc, ICG Resources Ltd, Trillium Exploration Corp and general partnership PAREX. Petro-Canada estimates reserves in the Terra Nova field's Graven block of between 68 mln and 70 mln barrels of oil, company spokesman Bob Foulkes said from Petro-Canada's Calgary office. Combined reserves for Graven Block and the field's East Flank block are estimated between 70 mln and 130 mln barrels, he added. Petro-Canada expects to spend about 500 mln Canadian dlrs to bring the field to production by about 1991, and the development budget could double if the company builds a production system combining both blocks in the field, he said. Petro-Canada estimates the Terra Nova field Graven block would produce between 25,000 and 26,000 barrels average daily production, with a production system that would have maximum capacity of 40,000 bpd, company spokesman Foulkes said in answer to a query. The company estimates a production system combining both Graven and East Flank blocks in the Terra Nova field could produce about 45,000 bpd average daily production, he said.  
AMOCO'S FIRST SOUTH CHINA SEA EXPLORATORY WELL FLOWS 2,240 BARRELS OF OIL DAILY.  AMOCO'S FIRST SOUTH CHINA SEA EXPLORATORY WELL FLOWS 2,240 BARRELS OF OIL DAILY  
SHELL CANADA SAID IT RAISED CRUDE PRICES BY 47 CANADIAN CTS A BARREL TODAY.  SHELL CANADA SAID IT RAISED CRUDE PRICES BY 47 CANADIAN CTS A BARREL TODAY  
SHELL CANADA <SHC> RAISED CRUDE OIL POSTINGS. Shell Canada, a wholly owned subsidiary of the Royal Dutch/Shell Group <RD> said that it raised crude oil prices by about 47 Canadian cts a barrel today. The increase riased its posted price for Light sweet crude oil to 21.95 dlrs a barrel from its march one level. Light sour crudes were raised to 19.95 dlrs a barrel, the company said.  
FITZWATER SAYS REAGAN STRONGLY AGAINST TAX HIKE. White House spokesman Marlin Fitzwater said President Reagan's record in opposing tax hikes is "long and strong" and not about to change. "We're opposed to tax increases.... We will fight tax increases.... We will deal with it politically in every forum possible," said Fitzwater when questioned about whether there was any change in the administration's position. Fitzwater said Reagan's strong feelings against a tax hike included opposition to an oil import fee. "The President's position is that he is opposed to it," he said.  
CANADIAN OIL COMPANIES RAISE CRUDE PRICES. Petro-Canada, the state-owned oil company, said it raised the contract price it will pay for crude oil 64 Canadian cts a barrel, effective March six. Petro-Canada's posted price for the benchmark light sweet grade, Edmonton/Swann Hills at 40 api gravity, now stands at 21.95 Canadian dlrs/bbl. Their light sour grade is posted at 19.88 Canadian dlrs/bbl. Earlier today, Shell Canada <SHC> said it raised its crude postings about 47 Canadian cts/bbl, bringing Edmonton light sweet to 21.95 Canadian dlrs/bbl, and the light sour crude to 19.95 Canadian dlrs/bbl. Imperial oil <IMO.A>, a 70 pct owned subsidiary of Exxon Corp, said that effective March five it also raised its light sweet crude posting to 21.95 Canadian dlrs/bbl.  
ECUADOR QUAKE TO CUT OIL REVENUES 800 MLN DLRS. up to 300 people were feared dead and more than 15,000 people left homeless by thursday's earthquake, which will cost Ecuador close to 800 mln dlrs in lost petroleum revenues, authorities said. They estimated the cost of repairing a damaged oil pipeline at 150 mln dlrs. "the magnitude of the damages caused by the earthquake is gigantic," president leon febres cordero said after inspecting the damages in napo, the hardest-hit jungle province, 100 miles from here. The quake damaged 40 km of an oil pipeline, forcing this opec nation to suspend crude exports for four months, president febres cordero said in a statement issued today by the presidential press office. The country would lose an estimated 800 mln dlrs in crude exports until the pipeline was repaired, the president said. It would cost 150 mln dlrs to repair the pipelline which carries oil from jungle oil fields over the andes to Balao, a pacific ocean port. Crude traditionally accounts for up to two-thirds of ecuador's exports. the quake triggered landslides, swelling the aguarico river which burst it banks carrying away homes and huts in napo province, health minister jorge brancho told reuters. "we fear that up to 300 people died in napo though there is no way of now knowing the exact figure because many people have disappeared," he said. Other estimates ranged as high as 500 dead. So far 20 corpses have been recovered, bracho said. Information Minister Marco Lara told reporters: "the number of dead and injured is not known ... because we do not know how many people lived in the homes hit by the landslides." Bracho said at least 15,000 were left homeless in the cayambe district.  
USX <X> UNIT RAISES SOME CRUDE POSTINGS. Marathon Petroleum Company, a subsidiary of USX Corp <X>, said it raised the contract price it pays for three grades of crude oil, effective March 6. Illinois Sweet and Indiana Sweet are both being raised 50 cts a barrel to 16.75 dlrs/bbl, and the Southern Michigan grade is being raised 25 cts/bbl, also to 16.75 dlrs a bbl. The West Texas Intermediate grade was unchanged.  
CONOCO RAISES CRUDE OIL PRICES UP TO ONE DLR BARREL, WTI AT 17.50 DLRS.  CONOCO RAISES CRUDE OIL PRICES UP TO ONE DLR BARREL, WTI AT 17.50 DLRS  
API PRESIDENT SEES OPTIONS TO AVERT OIL CRISIS. American Petroleum Institute President Charles DiBona said no options should be rejected to combat growing U.S. dependence on foreign oil. "No action should be ruled out--import fees or quotas, floor prices, tax incentives or other alternatives--while a national dialogue on the issue continues," DiBona said at a paper institute conference in New York today. DiBona said there is no unanimity within the industry on how to stimulate energy production but there is consensus on removing several government policies that hinder investments in new prospects. DiBona said the windfall profit tax should be abolished immediately and current proposals for increased environmental regulations on acid rain and waste disposal should be not adopted. He also suggested that the Arctic National Wildlife Refuge in Alaska should be opened up for leasing to oil companies, DiBona said. "This is a battle the industry cannot afford to lose if the nation is to continue to benefit from Alaskan oil," DiBona said. Since 1986 U.S. oil production has fallen while consumption rose and that has raised dependence on imported oil, particularly from OPEC, DiBona said.  
DUPONT <DD> UNIT RAISES CRUDE OIL PRICES. Conoco Inc, a subsidiary of DuPont Corp, said it was increasing its contract prices for crude oil between 10 cts and one dlr a barrel, effective today. Conoco said the increase brings its price for the U.S. benchmark crude West Texas Intermediate to 17.50 dlrs a barrel, up one dlr. South Louisiana Sweet, also up one dlr, is now 17.85 dlrs. West Texas Sour was up 10 cts to 16.60 dlrs a barrel. Conoco was the last company to raise prices following a series of increases initiated last week by Sun Co <SUN>, which reversed the posted price cuts made at the end of February.  
PICKENS SEES CONTINUED SLUMP IN WORKING RIGS. T. Boone Pickens, the Texas oilman and financier, said he believes the heady days the oil service industry had in the early 1980s, when over 4,500 oil rigs were once reported operating, will not return in his lifetime. Pickens told Reuters he expects the rig count to drop to below 600 before recovering. He added that oil prices will eventually rise to 35 dlrs, then to 50 dlrs after 1990. Currently, some 700 oil rigs are operating in the U.S., down sharply after oil prices slipped from 30 dlrs in late 1985 to around 10 dlrs in 1986. Prices are now around 18 dlrs. The highest number of working rigs was 4,500 in December 1981. "The rigs won't go back to work until the price of oil gets above 30 dlrs," he said, adding that while he expects to see 50 dlr a barrel oil, he does not expect to see 2,000 rigs operating in his lifetime. Pickens is 58. Pickens, who is currently touring the country promoting his autobiography "Boone," said he does not believe the U.S. should impose an oil import fee in order to stimulate the domestic oil industry.  
IRANIAN OIL MINISTER IN UAE TALKS. Iranian Oil Minister Gholamreza Aqazadeh is in the United Arab Emirates (UAE) to discuss oil prices and the general market situation, Iranian officials accompanying him said. He will meet UAE President Sheikh Zaid bin Sultan al-Nahayan and Oil Minister Mana Said al-Oteiba. Aqazadeh arrived last night after a brief stopover in Riyadh, where he met Saudi Arabia's Oil Minister Hisham Nazir. The official Saudi Press Agency quoted him as saying his talks at Riyadh with Nazir had been constructive and good. Aqazadeh said Organisation of Petroleum Exporting Countries (OPEC) members were agreed on holding production stable and he reiterated the importance of maintaining oil prices. OPEC members agreed in December to limit production to 15.8 mln barrels per day for the first half of this year and on a benchmark price of 18 dlrs a barrel from February 1. Aqazadeh also visted OPEC members Gabon, Algeria and Libya. The Iranian news agency, IRNA, quoted him as saying before leaving Tripoli that OPEC should do everything possible to make oil prices permanently stable.  
SAUDI ARABIA'S KING FAHD WANTS STABLE OIL PRICES. King Fahd said today Saudi Arabia wants oil price stability and he called on non-OPEC producers to avoid harmful competition with the 13 nation group. His plea, in an interview with Reuters and the television news agency Visnews, came ahead of a state visit he will make to Britain later this month. King Fahd was asked whether Saudi Arabia would be prepared to reduce its oil output below its OPEC quota of 4.133 mln barrels per day (bpd) to defend the 18 dlr benchmark price agreed to by OPEC last December. The King replied: "Saudi Arabia doesn't decide prices by itself but certainly desires price stability." Non-OPEC countries "must help us in a framework of common interest so that there is no type of competition which could prove harmful to everyone," he said. Asked if he saw the 18 dlr per barrel benchmark as a first step towards higher world oil prices, King Fahd said it was not for Saudi Arabia but for all OPEC countries to determine such issues. Iran and Algeria have already called for a higher benchmark. In recent weeks the 18 dlr level has come under pressure, due partly to quota violations by some OPEC members. King Fahd said Saudi Arabia, the world's largest oil exporter, was adhering to decisions made at OPEC's December conference which set a 15.8 mln bpd output ceiling for the first half of 1987. A major non-OPEC producer, Britain has so far resisted the group's pleas to curb its North Sea oil output. The King also urged the world community to help the Palestinians return to their homeland and called for a peaceful end to the Iran-Iraq war. The 6-1/2-year-old war could not be resolved on the battlefield, he said.  
OIL FIRMS CUT 1987 INDONESIAN EXPLORATION SPENDING. Foreign oil companies will spend less on exploration in Indonesia this year than last, budgeting 2.7 billion dlrs for calendar 1987 against 1986 spending of 2.8 billion dlrs, the state oil company Pertamina said. Actual spending last year fell short of the budgeted figure of 3.2 billion dlrs, as oil companies slashed expenditure because of the crash in world oil prices. Jumardi Jukardi, head of Pertamina's coordinating board for foreign contractors, said foreign companies will drill 110 exploration wells and 431 development wells this year, against 108 and 330 last year.  
INDONESIA OIL CONTRACT NEGOTIATIONS END THIS MONTH. Negotiations between Indonesia's state oil company Pertamina and foreign oil contractors on extension of the standard 30-year production sharing contract will be concluded by the end of this month, a Pertamina official said. Jumardi Jukardi, head of Pertamina's foreign contractors coordinating board, gave no details about the outcome of the talks. But Pertamina President Abdul Rachman Ramly has said priority will be given to extending contracts for companies whose exploration and production contracts expire within the next seven to 10 years. Jukardi, speaking to Indonesian reporters, said the negotiations would determine whether the 85-15 production sharing split in favour of Pertamina would be adhered to or altered in some cases as oil companies are asking for. Hardjoko Seputro, spokesman for the Mines and Energy Ministry, has said that President Suharto has agreed in principle to extension of the standard 30-year production sharing contract to reflect better current depressed conditions on the international oil market.  
ECUADOR CRUDE OIL EXPORTS STOPPED FOR FIVE MONTHS. Ecuador needs 120 mln dlrs to repair the damage to its oil export pipeline caused by last week"s earthquake, which will stop crude exports for five months, energy and mines minister Javier Espinosa Teran said. Espinosa said yesterday the pipeline, which carries crude from jungle fields to the Pacific Ocean coast of Balao, would be repaired with the help of Texaco Inc <TX.N> and a Mexican and an Argentine firm. President Leon Febres Cordero said two days ago that Ecuador, an OPEC member, would have to suspend crude exports for four months due to the quake. Oil traditionally accounts for up to two-thirds of Ecuador's total exports and as much as 60 pct of government revenues. Deputy energy minister Fernando Santos Alvite said Ecuador would have to import six to seven mln barrels of crude oil to meet its needs until the line was repaired. The Ecuadorean minister at the Presidency, Patricio Quevedo, told reporters that Venezuela will lend Ecuador five mln barrels of crude, which would repaid in kind after a 180-day period. He added the Caracas-based Andean Development Corp had granted a loan of 11.7 mln dlrs towards repairing the pipeline, 50 km of which had been damaged in the quake. In Quito, Foreign Minister Rafael Garcia Velasco yesterday summoned ambassadors from about 40 countries to whom he issued appeal for emergency aid for the country. Only three countries, the U.S., Colombia and Venezuela, had offered assistance.  
TALKING POINT/OIL SERVICES TURNAROUND SEEN. The oil services industry is on the verge of a recovery because of rising crude prices, oil industry analysts said. The analysts, who issued buy recommendations on some stocks, said the recovery in oil services should begin in the second half of 1987, after drilling activity bottoms out in the first half, and continue into the next decade. "People, however, cannot afford to wait for drilling to go up to start buying," said Sandi Haber Sweeney, senior research analyst at Sanford C. Bernstein and Co Inc. Among the recommended buys are Schlumberger Ltd <SLB>, Halliburton Co <HAL>, Dresser Industries <DI>, Baker International <BKO>, and McDermott International Inc <MDR>, which may be the target of a takeover by Harold Simmons, a Dallas-based investor. Analysts said although major oil companies are increasing exploration and development overseas, they expect the pickup in oil services will begin in the U.S. "Activity in the U.S. is so depressed it should move up faster," said Vishnu Sharp of Goldman Sachs. The number of active oil drilling rigs in the U.S. was 766 last week compared with 1,212 rigs one year ago, Huges Tool Co <HT> figures show. The average number of working rigs in the U.S. for 1987 is projected at 978 versus 964 in 1986, according to Ike Kerridge, vice president of stockholder relations at Hughes Tool. "The first significant pickup in drilling activity will occur in the second half of 1988," Kerridge said. Overseas drilling activity is expected to follow a similar pattern, Kerridge said. "Halliburton is the best value," said Jeffrey Freedman, vice president at Smith Barney, Harris and Upham Inc, adding the company controls the greatest amount of liquidity of common stock market value, is diversifed in non-oil field businesess, and has the lowest multiple of stock price to operating cash flow including debt. Schlumberger is Freedman's second favorite oil service stock. "Schlumberger is expected to continue to be the dominant technical leader in the industry," Freedman said. "Schlumberger's management shift, asset restructuring, including a pending merger of Fairchild Semiconductor, and its considerable cash horde sets the stage for the company to maximize its significant industry advantage and capitalize on the project upturn in exploration and development activity," according to a report by George Gaspar, first vice president at Robert W. Baird and Co Inc. Gaspar estimates earnings per share for Schlumberger at 25 cts for 1987 and one to 1.75 dlrs in 1988 compared with 20 cts in 1986 excluding a fourth quarter special charge of 1.87 billion dlrs. Bernstein's Sandi Sweeney is recommending a group of oil service companies and said choosing among them is difficult. Her favorite is Baker International, which is involved in a possible merger with Hughes Tool Co. Dresser Industries will also benefit from the recovery but possibly not as much as other companies because it is not a pure service company, Sweeney said. Dresser is expected to improve profitability owing to cost reductions and streamlined operations, including the sale and leaseback of its headquarters, said Swarup.  
OPEC REAFFIRMS COMMITMENT TO FIXED PRICES, CEILING. OPEC has reaffirmed its commitment to fixed crude oil prices of around 18 dlrs a barrel and an overall output ceiling of 15.8 mln barrels per day (bpd) to defend prices, its president Rilwanu Lukman said. He told a news conference here "After due consultation with my colleagues in OPEC, I hereby wish to emphasize that Nigeria and all member countries of OPEC remain determined to uphold the December agreement by adhering strictly to their various quotas and official selling prices." Lukman added no extraordinary OPEC conference was planned. "We are in a position to re-confirm that, despite misleading news in foreign media to the contrary, ... OPEC member countries as a whole produced below their agreed quota in the month of February," Lukman, who is Nigerian oil minister, said. Lukman put the overall OPEC output shortfall in February at 900,000 bpd and said this was as a result of their firm determination to defend official selling prices of 18 dlrs agreed upon last December in Geneva. The December agreement set an overall output ceiling for OPEC of 15.8 mln bpd for first half 1987 and restored fixed prices as from February 1 around a reference point of 18 dlrs. Oil prices rallied immediately after the Geneva accord but fell again last month on reports that OPEC was producing more than the agreed level. "The idea was to suggest that OPEC's agreement would not hold and this caused some customers to hold back purchases of OPEC oil and resort to destocking to meet their needs," Lukman said. He said the 900,000 bpd shortfall last February was based on the verified figure for 10 out of OPEC's 13 members, adding that Nigeria alone had a shortfall in production of 100,000 bpd. Iraq disassociated itself from the December agreement, while the production figures of Ecuador and the United Arab Emirates needed to be verified, Lukman said. "If that is the price we have to pay to make the agreement succeed, we are ready ... OPEC is not changing its price level of 18 dlrs," the group's president said. He said the OPEC price differentials committee meeting formerly postponed to April had been put off indefinitely. "Furthermore, no extraordinary meeting of the conference is at the moment contemplated since most agreements reached in December are being adhered to," he said. Asked if the committee did not need to meet soon to narrow the gaps in the prices of the various OPEC crudes -- fixed in relation to the 18 dlr benchmark -- Lukman replied "We consider the defence of our prices much more crucial than differentials." Lukman said OPEC was aware that consumers had heavily drawn on stocks of both crude oil and refined products to levels well below this time last year and soon they would return to the market in search of crude. "We don't see that there is going to be any difficulty in maintaining the 18 dlr price throughout the rest of the year," Lukman said. The OPEC president praised non-OPEC oil producers, which he said had contributed to the group's efforts to stabilise prices, but he criticised Britain for maintaining its long-held view not to do anything to help the market. "We are quite confident, however, that in the long-term with two-thirds of the world's reserves in OPEC hands, the future is ours. We will use that advantage responsibly," he said. Lukman described the disruption in Ecuador's output following an earthquake as tragic, but refused to say if the South American country would be allowed a higher output quota when it recovered from the disaster.  
TRITON ENERGY <OIL> AFFILIATE IN CANADIAN FIND. Triton Energy Corp said its 70 pct owned <Canadian Worldwide Energy Ltd> affiliate's Lasmo et al Tableland 4-36-2-10W2 well in Saskatchewan flowed 567 barrels of 37 degree gravity oil through a 17/64 inch choke from depths of 8,531 to 8,548 feet and 636 barrels of oil per day through a 20/64 inch choke from depths of 8,500 to 8,507 feet. Triton said because of the well's status as a deep exploratory well, production qualifies for a five-year royalty holiday under the Saskatchewan drilling incentive products. It said the well's initial production is expected to be restricted to an allowable level of about 300 barrels a day, although it is capable of sustaining much higher rates. The company said London and Scottish Marine Oil PLC owns a 50 pct interest in the well and its spacing unit, Canadian Worldwide 25 pct, <Saskatchewan Oil and Gas Corp> 10 pct, <Interprovincial Pipeline Ltd's> Home Oil Co Ltd 7.5 pct and Scurry-Rainbow Oil Ltd <SRB> 7.5 pct. Triton said Royal Dutch/Shell Group's <RD> <SC> Shell Canada Ltd <SHC> affiliate retains a convertible overriding interest in the well.  
ECUADOR DEPUTY MINISTER SEEKS OIL AID IN VENEZUELA. Ecuador's deputy energy minister Fernando Santos Alvite arrived here last night for talks on further Venezuelan assistance to his country's oil industry following last week's earthquake, officials said. Ecuador was obliged to suspend crude oil exports for an expected five months as a result of damage to 25 miles of pipeline linking its jungle oil fields with the Pacific port of Balao. Oil normally accounts for 60 pct of its exports. Fellow OPEC member Venezuela has already agreed to lend Ecuador five mln barrels of crude, to be repaid in kind after 180 days, to help meet its domestic consumption needs. The officials could neither confirm nor deny reports that Venezuela will temporarily produce Ecuador's entire OPEC quota, set at 210,000 barrels per day for first half 1987. "All options are open at this moment in the context of cooperation on oil production," a Venezuelan energy and mines ministry source said. Discussions are also under way to arrive at a formula to compensate Ecuador for the loss in oil export revenue while the pipeline is repaired, officials said. Santos Alvite last night met Venezuelan energy and mines minister Arturo Hernandez Grisanti and will today hold talks at technical level, officials said. Industry sources said that among the options are for Venezuela to produce Ecuador's entire quota, or for Venezuela and non-OPEC Mexico to share it and for the latter to supply Ecuador's Far Eastern clients. But the ministry source said that no decision has yet been reached on the matter, and that an announcement would be made in due course. Santos Alvite said earlier in Quito that Ecuador would have to import six to seven mln barrels of crude oil to meet its needs until the line was repaired. Ecuador energy and mines minister Javier Espinosa Teran said last night his country needs 120 mln dlrs to repair the damage to the export pipeline caused by the earthquake.  
ECUADOR OFFICIAL SEEKS OIL AID IN VENEZUELA. Ecuador's deputy energy minister Fernando Santos Alvite arrived here last night for talks on further Venezuelan assistance to his country's oil industry following last week's earthquake, officials said. Ecuador was obliged to suspend crude oil exports for an expected five months as a result of damage to 25 miles of pipeline linking its jungle oil fields with the Pacific port of Balao. Oil normally accounts for 60 pct of its exports. Fellow OPEC member Venezuela has already agreed to lend Ecuador five mln barrels of crude, to be repaid in kind after 180 days, to help meet its domestic consumption needs.  
JORDAN-PETROCANADA AGREE OIL EXPLORATION PROJECT. A two-year project to search for oil and gas in Jordan was agreed in Amman by Jordan's Natural Resources Authority (NRA) and the Canadian company, Petrocanada International Assistance Corporation (PCIAC). The 19.1 mln dlr assistance agreement was signed by Jordan's Minister of Energy Hisham al-Khatib and PCIAC chairman Peter M. Towe. PCIAC is a Canadian government corporation providing assistance to countries like Jordan to reduce their dependence on oil imports, Towe said.  
MARATHON TO RAISE CRUDE PRICES 50 CTS/BBL TOMORROW WTI  TO 17.50 DLRS.  MARATHON TO RAISE CRUDE PRICES 50 CTS/BBL TOMORROW WTI  TO 17.50 DLRS  
EIA SAYS DISTILLATE STOCKS OFF 8.8 MLN, GASOLINE OFF 500,000, CRUDE OFF 1.2 MLN.  EIA SAYS DISTILLATE STOCKS OFF 8.8 MLN, GASOLINE OFF 500,000, CRUDE OFF 1.2 MLN  
EIA SAYS DISTILLATE, GAS STOCKS OFF IN WEEK. Distillate fuel stocks held in primary storage fell by 8.8 mln barrels in the week ended March six to 119.6 mln barrels, the Energy Information Administration (EIA) said. In its weekly petroleum status report, the Department of Energy agency said gasoline stocks were off 500,000 barrels in the week to 251.0 mln barrels and refinery crude oil stocks fell 1.2 mln barrels to 331.8 mln. The EIA said residual fuel stocks fell 1.5 mln barrels to 36.4 mln barrels and crude oil stocks in the Strategic Petroleum Reserve (SPR) rose 200,000 barrels to 516.7 mln. The total of all crude, refined product and SPR stocks fell 10.3 mln barrels to 1,564.8, it said.  
USX <X> UNIT TO RAISE MOST CRUDE POSTINGS. USX's subsidiary, Marathon Petroleum Co, said it will raise its contract prices for eleven grades of crude oil 50 cts a barrel, effective tomorrow. The increase brings Marathon's posted price for West Texas Intermediate and West Texas Sour grades to 17.50 dlrs a barrel. The Light Louisiana grade was also raised 50 cts to 17.85 dlrs a barrel.  
VENEZUELA TO LEND OIL TO ECUADOR FOR EXPORT. venezuela will supply ecuador with an as yet undetermined amount of crude oil to help it meet export commitments, seriously affected by last week's earthquake, energy and mines minister arturo hernandez grisanti said. He gave few details about the deal, but said a crude oil loan agreement will be made between state oil companies petroleos de venezuela (pdvsa) and ecuador's cepe. Ecuador was forced to suspend oil exports for an expected four months after an earthquake damaged a pipeline. Oil accounts for 60 per cent of its export income. Hernandez was speaking to reporters at miraflores palace on the results of talks with ecuador's deputy energy minister fernando santos alvite, who arrived here last night. "the volume lent to ecuador would be discounted from its opec quota and would not affect venezuela's," he said. "we would from august on produce our own quota and sell the additional amounts that ecuador would be repaying us," he said. He did not elaborate on the quota arrangements but did say ecuador would notify opec by telex that venezuela would be lending it a certain amount over so many days. Venezuela's opec output quota is currently 1.495 million barrels a day, and ecuador's has been set at 210,000 bpd.  
ECUADOR TO ASK OPEC TO RAISE EXPORT QUOTA. Ecuador will ask OPEC to raise its oil export quota by 100,000 barrels per day to 310,000 to compensate for lost output due to last week's earthquake, deputy Energy Minister Fernando Santos Alvite said. Santos Alvite, who arrived in Caracas last night to discuss an aid plan for Ecuador, did not say when the Organisation of Petroleum Exporting Countries (OPEC) would be approached. The additional output would be related to plans now under discussion for Venezuela and Mexico to lend Ecuador crude while it repairs a pipeline damaged by the quake. Earlier, Venezuelan Energy and Mines Minister Aturo Hernandez Grisanti said his country would supply an unspecified part of Ecuador's export commitments. But Santos Alvite told reporters he hoped a first cargo of 300,000 barrels could leave Maracaibo this weekend to supply refineries near Guayaquil. He added Ecuador also wanted to make up for 50,000 bpd it shipped to Caribbean destinations. Mexico might supply Ecuador's South Korean market. Ecuador may be unable to export oil for up to five months due to extensive damage to a 25 mile stretch of pipeline linking jungle oilfields to the Pacific port of Balao.  
CHINA CLOSES SECOND ROUND OF OFFSHORE OIL BIDS. China has closed the second round of bidding by foreign firms for offshore oil exploration rights, the China Daily has reported. It quoted a spokesman for the China National Offshore Oil Corp (CNOOC) as saying China signed eight contracts with 15 foreign firms for blocks in the Pearl River mouth and south Yellow Sea covering a total area of 44,913 sq km. Second round bidding began at the end of 1984 and only one well has so far produced results -- Lufeng 13-1-1, 250 km south-east of Shenzhen, with an output of 6,770 barrels a day. The well was drilled by a group of Japanese companies. The spokesman added CNOOC was ready to enter into contracts for offshore blocks before third round bidding began. He did not say when this would be, but added the contracts would not be bound by restrictions imposed during the second round. China has signed 36 oil contracts and agreements with 37 companies from 10 countries since 1979, when offshore exploration was open to foreigners. Eleven contracts were terminated after no oil was discovered. Foreign firms have invested 2.1 billion dlrs on offshore China since 1979.  
CHINA CLOSES SECOND ROUND OF OFFSHORE OIL BIDS. China has closed the second round of bidding by foreign firms for offshore oil exploration rights, the China Daily has reported. It quoted a spokesman for the China National Offshore Oil Corp (CNOOC) as saying China signed eight contracts with 15 foreign firms for blocks in the Pearl River mouth and south Yellow Sea covering a total area of 44,913 sq km. Second round bidding began at the end of 1984 and only one well has so far produced results -- Lufeng 13-1-1, 250 km south-east of Shenzhen, with an output of 6,770 barrels a day. The well was drilled by a group of Japanese companies. The spokesman added CNOOC was ready to enter into contracts for offshore blocks before third round bidding began. He did not say when this would be, but added the contracts would not be bound by restrictions imposed during the second round. China has signed 36 oil contracts and agreements with 37 companies from 10 countries since 1979, when offshore exploration was open to foreigners. Eleven contracts were terminated after no oil was discovered. Foreign firms have invested 2.1 billion dlrs on offshore China since 1979.  
ECUADOR TO ASK OPEC TO RAISE EXPORT QUOTA. Ecuador will ask OPEC to raise its oil export quota by 100,000 barrels per day to 310,000 to compensate for lost output due to last week's earthquake, deputy Energy Minister Fernando Santos Alvite said. Santos Alvite, who arrived in Caracas last night to discuss an aid plan for Ecuador, did not say when the Organisation of Petroleum Exporting Countries (OPEC) would be approached. The additional output would be related to plans now under discussion for Venezuela and Mexico to lend Ecuador crude while it repairs a pipeline damaged by the quake. Earlier, Venezuelan Energy and Mines Minister Aturo Hernandez Grisanti said his country would supply an unspecified part of Ecuador's export commitments. But Santos Alvite told reporters he hoped a first cargo of 300,000 barrels could leave Maracaibo this weekend to supply refineries near Guayaquil. He added Ecuador also wanted to make up for 50,000 bpd it shipped to Caribbean destinations. Mexico might supply Ecuador's South Korean market. Ecuador may be unable to export oil for up to five months due to extensive damage to a 25 mile stretch of pipeline linking jungle oilfields to the Pacific port of Balao.  
MOST JAPAN FIRMS NOT RENEWING IRAN TERM CONTRACTS. Most Japanese companies have decided not to renew term contracts to lift Iranian crude oil because spot prices remain considerably lower than OPEC's official levels, industry sources said. They said a cargo of the Mideast benchmark crude Dubai traded yesterday at 16.50 dlrs a barrel, compared to its official price of 17.42 dlrs. Only one Japanese company has renewed its term contract for Iranian crude oil for the second quarter, the sources said. The sources said Japanese companies had been lifting a total of about 185,000 barrels per day (bpd) of Iranian crude under term contracts, but only one firm has agreed to lift in the second quarter. It is lifting just 10,000 to 15,000 bpd. They said this move could inspire Iran to offer discounts on cargoes loading in April, but the likelihood of discounts depended largely on the levels of spot prices. "If the spot price of Dubai goes above 17.30 dlrs we would probably buy Iranian crude at the official price," one Japanese refiner said. "We don't intend to put pressure on them," he added. Buyers have little incentive to renew contracts to lift oil at official OPEC prices while spot prices on all grades are considerably lower, oil traders said. They said if spot prices move higher there will be no problem finding OPEC crude to purchase at the official prices. Qatar has chartered floating storage for its crude oil after finding no buyers at official prices in March. The problem is likely to recur in April, adding to that country's surplus. The traders added that Iraq had dissociated itself from OPEC's December production agreement, while agreeing to the fixed prices. But oil analysts said if OPEC keeps group output close to its first-half 1987 ceiling of 15.8 mln bpd, supply and demand would be balanced by the end of the second quarter. They also said if OPEC holds its official price structure based on a reference price of 18 dlrs, spot price fluctuations should be limited to a 16.50 to 17.20 dlrs range for Dubai and a 17 to 18 dlrs range for the North Sea's Brent blend. One Japanese refiner said, "At the moment there's a lot of pressure on OPEC, particularly on Qatar. But if they hold out there will be no problem, and I'm beginning to trust their ability." Nigerian oil minister and OPEC president Rilwanu Lukman told a news conference in Lagos yesterday, "Nigeria and all member countries of OPEC remain determined to uphold the December agreement by adhering strictly to their various quotas and official selling prices." He said OPEC believed consumers had drawn heavily on stocks of both crude oil and refined products, reducing them to levels well below this time last year. He said consumers would soon return to the market in search of crude. A Japanese refiner said, "The European and U.S. Markets are beginning to look better so OPEC might be quite lucky."  
SAUDI OUTPUT SAID AT YEAR LOW TO HELP OPEC. Saudi Arabian oil output has fallen to its lowest level in more than a year, giving fresh evidence of the kingdom's determination to keep oil prices at 18 dlrs a barrel, as agreed by Opec last December, oil industry sources said. They said Saudi output in the first eight days of March averaged 2.6 mln barrels per day (bpd) including oil from the neutral zone shared with Kuwait, compared to a February average of 3.5 mln bpd. They said Saudi Arabia was also selling oil from its crude oil stocks in tankers around the world, which OPEC says must be counted towards a member's production quota. Saudi Arabia's quota is 4.133 mln bpd. The lower production levels indicated Saudi Arabia, the world"s largest oil exporter, was insisting on getting Opec official prices, even at the cost of lower production, the sources said. King Fahd reiterated yesterday, in an interview with Reuters and the television news agency Visnews, the Saudi commitment to OPEC's December pact to boost oil prices to an average 18 dlrs. "Saudi Arabia is completely sticking to OPEC decisions," he said. The sources said the kingdom's exports from Gulf ports averaged one mln bpd during the eight days ending last Sunday, down from a February average of 1.9 mln bpd. They said Saudi Arabia was allowing production to fluctuate with lifting nominations and was not trying to maintain artificially high levels by putting oil into storage. The kingdom's main buyers, the four U.S. Oil firms with past stakes in the national oil company Aramco -- Mobil, Exxon, Texaco and Chevron -- enjoy considerable flexibility in the timing and volume of their liftings but are bound to pay official prices, the sources said. Spot market prices have firmed in the past two weeks but still remain below OPEC levels and major buyers have delayed liftings in the hope they would improve, the sources said. They expected low early March output to pick up towards the end of the month as buyers sought to fulfill their contractual obligations.  
MOBIL <MOB> TO RESTRUCTURE EXPLORATION UNIT. Mobil Oil Corp said it will restructure its Dallas-based Mobil Exploration and Producing Services Inc operations April one, to provide stronger technological support to its U.S. and overseas operations. Mobil said the operation will consist of two new units, Technical Services and Application Technology, along with the existing Drilling and New Exploration Ventures groups. It said R.C. Mills, president and general manager of its Exploration and Producing Southeast Inc, has been named vice president and general manager of the new operation reporting to P.J. Hoenmans, president of its Exploration and Producing division.  
WILDLIFE UNIT PROPOSES ALASKA REFUGE OIL STUDY. The National Wildlife Federation rejected an Interior Department draft plan to open wilderness lands in Northern Alaska to oil and gas exploration. The federation, the nation's largest conservation group, said further study was needed to assess any possible damage that development might have on the wildlife in the area, the coastal plain of the Arctic National Wildlife Refuge. Jay Hair, the federation's executive vice president, called the Interior's research into the effects of development "so fundamentally flawed that it provides little or no basis on which to make a public policy decision." Hair called the department's proposal a "reflection of a largely political decision," adding "we have no confidence in Interior to represent the broad public interest in this area." Interior wants to open the 1.5 million acre coastal plain to oil and gas exploration, but it said only with tough safeguards to protect the area's caribou and musk-oxen. It said a preliminary survey showed the region could hold billions of barrels of oil and gas, and that its potential as an energy resource would never be known without exploration. Interior said oil on the coastal plain could match the 10 billion barrels found at Prudhoe Bay, just west of the plain. Under existing law, Congress must agree to oil and gas exploration, and if it does not act, the land will remain a wildlife refuge protected from commercial development. Hair said Interior's report failed to stress the probability that finding recoverable oil is only 19 pct. He said Interior's study also failed to weigh oil, gas, fish and wildlife information the State of Alaska had gathered nor had the department consulted the Environmental Protection Agency on the possible effects of exploration. The federation, in letters to Congressmen, proposed that a nine-member commission be set up to study all aspects of the issue and report back to Congress in about two years. Hair said the federation was not opposed to the possible exploration of oil, only that Interior's study was inadquate to make a sound judgement. Congressional observers said that at present there was little sentiment in Congress to open the wildlife area for commercial exploitation dispite increasing concern that the United States is becoming overly dependent on foreign oil.  
SOLV-EX <SOLV> SHELL CANADA <SHC> PACT COMPLETE. Solv-Ex Corp said it successfully completed its oil sands pilot testing program under its agreement with Shell Canada Limited <SHC> and received a 250,000 U.S. dlr bonus payment. It also said that Shell Canada exercised its option to take over Solv-Ex's 25 pct working interest in the construction of the oil facility, relieving it of its obligation to raise about 62.5 mln Canadian dlrs for plant construction. It said 30 pct of that loan was guaranteed by the Government of Alberta. In exchange for Shell's participation, Solv-Ex said Shell is obligated to pay it an up-front royalty and a running royalty based on the operating profits of the oil sands facility. It said the Shell Canada 7,500 barrel per day oil sands project will be built on Shell's oil sand lease about 40 miles north of Fort McMurray in the Athabasca region of northern Alberta. Solv-Ex said the project will cost about 260 mln Canadian dlrs. It said that following a final feasibility study the plant should open in the early 1990s when oil prices are expected to exceed 20 U.S. dlrs per barrel.  
POWERINE REFINERY TO RESUME OPERATIONS. <Powerine Oil Co> said its refinery here will resume operation today, with initial crude oil runs of 20,000 barrels per day. Powerine, a privately-held company, said it expects the refinery to become fully operational by May, with crude oil throughput at 35,000 bpd. Initial oil products deliveries are scheduled for Monday, Powerine said. The refinery had been closed due to a change of ownership, the company said.  
MONTEDISON, OTHER REFINERIES TO SHUT FOR WORK. Selm-Societa Energia Montedison is to close its Priolo crude refining units from March 15th to March 28th for maintenance, a company spokesman said. Throughput at the refinery is currently estimated at 140-150,000 bpd, although total capacity is nearer 200,000 bpd. Several other Mediterranean refineries are currently shutdown for maintenance, most of which were scheduled some months ago. But industry sources said that shutdowns may have been rearranged to avoid running negative-netback crude. Tighter availabilities of products as a result of the shutdowns in the Med is helping to keep products markets bullish, particularly for March deliveries, oil traders said. Garrone's refinery at San Quirico (capacity 130,000 bpd) is due to shutdown on March 14th for three weeks, and the jointly-owned ISAB/Garrone refinery at Mellili, capacity 220,000 bpd, is due to start up around March 20-25th following its closure for maintenance a month ago, a company spokesman said. The Esso Italiana refineries at Augusta and Siracusa will not be closing this spring, a spokesman for the company said. In France, the distillation unit at Societe Francaise de BP's Lavera refinery has been closed for maintenance since March 2, and is due to restart early April. Total capacity is 181,900 bpd. It is currently operating at around 50 pct capacity, a company spokesman said. Shell Francaise's Berre l'Etang refinery will shut down in early April until mid-June, a company spokesman said. Capacity is around 150,000 bpd. Compagnie Francaise de Raffinage (CFR) will close the visbreaker at its La Mede refinery in early April, but would not affect crude throughput at the refinery, a company spokesman said. Current capacity is 136,000 bbl/day. Despite current bullish sentiment in the Med, however, traders noted that crude netbacks are beginning to look more attractive, and most maintenance shutdowns should be finished in two to three weeks. As a result, oil industry sources suggest that the situation may ease by mid-April.  
ATTACKS AFFECT COLOMBIA'S OIL OUTLOOK-ECOPETROL. Continuous rebel raids against oil pipelines and foreign exploration camps endanger Colombia's present oil bonanza, Franciso Chona, manager of the state-run oil company Ecopetrol said. "It seems the subversion wants to end with our oil bonanza," he told reporters. He was speaking after a meeting with Defense Minister Rafael Samudio, military chiefs and Mines and Energy Minister Guillermo Perry to review the security situation in the light of a recent upsurge of leftist guerrilla attacks in the oil-rich Arauca region, bordering Venezuela. Ecopetrol chief of security, Retired General Carlos Narvaez, said security measures would be stricter and that the armed forces were closely collaborating but gave no details. Samudio said new plans had been designed and hoped they would be effective. Samudio stressed that, despite the most recent attacks, which cost more than four mln dlrs in damage, the overall situation had improved compared with last December when initial measures were taken to combat a wave of attacks. Repeated bombings of a vital pipeline from the Cano Limon oilfield to the Caribbean then led to a loss of 51,000 barrels of crude.  
12-MAR-1987. 12-MAR-1987 
SUN <SUN> RAISES CRUDE POSTINGS 50 CTS. Sun Co said it raised the contract price it will pay for crude oil 50 cts a barrel, effective today. The increase brings Sun's posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs/bbl. The Light Louisiana Sweet grade was also raised 50 cts to 17.85 dlrs/bbl. Sun Co last changed its crude postings on March 4.  
DIAMOND SHAMROCK RAISED CRUDE BY 50 CTS/BBL TODAY. WTI UP TO 17.50 DLRS..  DIAMOND SHAMROCK RAISED CRUDE BY 50 CTS/BBL TODAY. WTI UP TO 17.50 DLRS.  
PHILLIPS RAISES CRUDE POSTINGS 50 CTS EFFECTIVE TODAY, WTI TO 17.50 dlrs/bbl.  PHILLIPS RAISES CRUDE POSTINGS 50 CTS EFFECTIVE TODAY, WTI TO 17.50 dlrs/bbl  
PHILLIPS <P> RAISES CRUDE POSTINGS 50 CTS. Phillips Petroleum said it raised the contract price it will for all grades of crude oil 50 cts a barrel, effective today. The increase brings Phillip's posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs a bbl. Phillips last changed its crude oil postings on March 4. The price increase follows similar moves by USX's <X> subsidiary, Marathon oil, and Sun Co <SUN> earlier today.  
DIAMOND SHAMROCK <DIA> RAISES CRUDE POSTINGS. Diamond Shamrock said it raised the contract price it will pay for crude oil 50 cts a barrel, effective today. The increase brings the company's posted price for the benchmark grade, West Texas Intermediate, to 17.50 dlrs/bbl. Diamond Shamrock last changed its postings on March 4.  
HOUSE SPEAKER BACKS OIL IMPORT FORECAST PLAN. House Speaker Jim Wright endorsed a proposal to require the president to take action to reduce oil imports if they threaten to top 50 pct of U.S. consumption. Wright told reporters the plan by Sen. Lloyd Bentsen, a fellow Texas Democrat, was positive and useful. Oil imports peaked in 1977 at 47 pct, were short of 36 pct last year and this year are up over 40 pct, Bentsen said. The Bentsen proposal, supported by 24 other Senators, would would require the president to issue annual three-year oil import forecasts. In any year they threatened to top 50 pct, he would be ordered to propose quotas or other solution.  
UNOCAL RAISES MOST CRUDE PRICES 50 CTS, TODAY, WTI AT 17.50 DLRS.  UNOCAL RAISES MOST CRUDE PRICES 50 CTS, TODAY, WTI AT 17.50 DLRS  
UNOCAL <UCL> RAISES CRUDE OIL POSTINGS. Unocal Corp said it raised the contract price it will pay for most grades of crude oil 50 cts a barrel, effective today. The increase brings Unocal's posted price for the U.S. benchmark grade West Texas Intermediate to 17.50 dlrs a barrel. It also brought the price for West Texas Sour to 17.50 dlrs a bbl. Light Louisiana Sweet was also raised 50 cts to 17.85 dlrs/bbl. Unocal last changed its crude postings on March four, and brings it price in line with other major companies, which have been raising prices steadily in recent weeks. The increase also represents the latest in a series of increases that began with USX Corp's <X> Marathon Petroleum Corp's notification yesterday evening that, effective today, it raised its crude postings 50 cts a barrel, bringing its contract price for WTI to 17.50 dlrs a barrel. Earlier today, Sun Co <SUN>, Phillips Petroleum <P> and Diamond Shamrock <DIA> also said they raised their crude postings 50 cts a barrel, bringing their WTI contract price to 17.50 dlrs a barrel. Contract prices have risen in response to higher spot market prices, oil traders said.  
CITGO RAISES CRUDE POSTINGS 50 CTS, TODAY, WTI TO 17.50 DLRS/BBL.  CITGO RAISES CRUDE POSTINGS 50 CTS, TODAY, WTI TO 17.50 DLRS/BBL  
SOUTHLAND <SLC> UNIT RAISES CRUDE POSTINGS. Southland Corp's Citgo Petroleum Corp said it raised the contract price it will pay for crude oil 50 cts a barrel, effective today. The increase bring's Citgo's posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs a barrel. The Light Louisiana Sweet South Onshore grade was also raised 50 cts to 17.85 dlrs a barrel, and Light Louisiana Sweet North was increased to 17.75 dlrs a barrel. Citgo last changed its postings on March four.  
BRAZIL CANCELS OIL PURCHASE FROM SAUDI ARABIA. Brazil's state-oil company, Petrobras, cancelled a 40 mln dlr crude oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the Bank of Brazil, a Petrobras official said. Export director Carlos Santana told a press conference the Saudis were the first suppliers of oil to impose such conditions after Brazil's decision to halt interest payment of its commercial debts last month. The shipment of 2.2 mln barrels represents two days of oil consumption in Brazil. But Santana said if the Saudis change their minds and decide to respect the terms of the contract, then Petrobras will lift the order to cancel the shipment. Santana said if the Saudis do not accept Brazil's terms by Monday then Petrobras will negotiate elsewhere. "Petrobras has been Saudi Arabia's traditional client since 1955. If they do not accept our conditions now, it will be much better for us, because with the market prices more or less the same, buying from Iraq and China is an advantage," he said. Iraq and China have barter deals with Brazil, importing Brazilian goods in exchange for oil, but the Saudis buy nothing from Brazil, he said. Santana said despite a strike threat by oil industry workers and a two-week stoppage by Brazilian seamen, Petrobras oil stocks are "reasonably balanced." Saudi Arabia is Brazil's second biggest oil supplier, with an average 115,000 bpd. Iraq is the main supplier with 235,000 bpd. China comes third, with 58,000 bpd. "If the Saudis wish to stop our trade relationship, fine, I am sure that if they do, we will be getting dozens of offers from elsewhere," Santana added.  
INDIA GETS 140 MLN DLR WORLD BANK LOAN. The World Bank said it has approved a 140 mln dlr loan for India to help lessen that country's dependence on imported oil and spur development of its own petroleum resources. The bank said the loan will be used to boost production by injecting gas in the partially depleted Assam oil fields and to assist exploration in other areas, including drilling 10 exploratory wells. The bank said the recipient of the 20-year loan will be Oil India Ltd (OIL), which is the smaller of two public Indian petroleum exploration and production companies.  
INDIA GETS 140 MLN DLR WORLD BANK LOAN. The World Bank said it approved a 140 mln dlr loan for India to help lessen that country's dependence on imported oil and spur development of its own petroleum resources. The bank said the loan will be used to boost production by injecting gas in the partially depleted Assam oil fields and to assist exploration in other areas, including drilling 10 exploratory wells. The bank said the recipient of the 20-year loan will be Oil India Ltd (OIL), which is the smaller of two public Indian petroleum exploration and production companies.  
VENEZUELA TO LEND ECUADOR 50,000 BPD OF CRUDE. Venezuela will lend Ecuador 50,000 barrels per day of crude oil over the next few months to help it meet its export commitments, Energy and Mines Minister Arturo Hernandez Grisanti said today. He said that under the terms of this loan, agreed during a visit here this week by Ecuador's Deputy Energy Minister Fernando Santos Alvite, Ecuador will begin repaying the loan in August. Hernandez Grisanti said the loan will go part way to offsetting the loss of Ecuador's 140,000 in exports caused by earthquake damage to 25 miles of pipeline last week. Ecuador was forced to suspend exports after the pipeline connecting its jungle oil fields with the pacific port of Balao was put out of action. Venezuela has an output quota of 1.495 bpd, while Ecuador's is 210,000 bpd. Santos Alvite said Ecuador will ask OPEC to allow it to produce 100,000 bpd above its quota when the pipeline is repaired to offset present production losses. Hernandez Grisanti said also a first 300,000 barrels shipment of Venezuelan crude oil will leave for Ecuador this weekend to help meet domestic consumption needs. The oil, part of a five mln additional crude oil loan by Venezuela, will be processed at Guayaquil refineries. "If we had not supplied oil to Ecuador the life of this country would have ground to a halt," he said.  
Opec deliberately under 15.8 mln barrel ceiling to defend price - Subroto.  Opec deliberately under 15.8 mln barrel ceiling to defend price - Subroto  
SUBROTO SEES OIL MARKET CONTINUING BULLISH. Indonesian Energy Minister Subroto said he sees the oil market continuing bullish, with underlying demand expected to rise later in the year. He told a press conference in Jakarta at the end of a two-day meeting of South-East Asian Energy Ministers that he saw prices stabilizing around 18 dlrs a barrel. "The sentiment in the market is bullish and I think it will continue that way as demand will go up in the third or fourth quarters," Subroto said. Asked about the prospect for oil prices, he said: "I think they will stabilise around 18 dlrs, although there is a little turbulence ..." "Of course the spot price will fluctuate, but the official price will remain at 18 dlrs," he added.  
OPEC DEFENDING 18 DLR PRICE, SUBROTO SAYS. Indonesian Energy Minister Subroto said OPEC is deliberately under its production ceiling of 15.8 mln barrels to defend its 18 dlr a barrel price target. He told reporters at an energy conference in Jakarta that OPEC had decided to maintain its price level of 18 dlrs. "We are deliberately defending the price, so OPEC production is less than 15.8 (mln) at the moment," he stated. Asked if OPEC would increase production if prices went above 18 dlrs a barrel, he said this would be decided at the next OPEC meeting in June. "We will discuss the market situation then," he added. He said a meeting of the OPEC Differentials Committee had been postponed because "there is no need for the meeting." He did not elaborate. The committee had originally been due to meet in Vienna this week.  
PETROBRAS CANCELS OIL PURCHASE FROM SAUDI ARABIA. Brazil's state oil company Petrobras has cancelled a 40 mln dlr crude oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the Bank of Brazil and did not disclose reasons, a Petrobras official said. Export director Carlos Santana told reporters the Saudis were the first suppliers of oil to impose such conditions after Brazil's decision to halt interest payment of its commercial debts last month. The shipment of 2.2 mln barrels represents two days of consumption. He said the Saudis reported they would no longer accept letters of credit from the Bank of Brazil or even from Saudi banks and that Brazil would have to obtain credit guarantees from leading international banks. In February, Brazil had contracted to buy 125,000 bpd from the Saudis until June. Saudi Arabia is Brazil's second biggest oil supplier, with an average 115,000 bpd. Iraq is the main supplier with 235,000 bpd. China comes third, with 58,000 bpd. "If the Saudis wish to stop our trade relationship...I am sure that if they do, we will be getting dozens of offers from elsewhere," Santana added. Santana said if the Saudis change their minds and decide to respect the terms of the contract, then Petrobras will lift the order to cancel the shipment. The Saudis had put similar conditions on a previous shipment, he added. "We telexed them saying that if they insisted, we would rather cancel the contract and buy the product elsewhere," Santana said. After Petrobras threatened to cancel the contract, the Saudis changed their minds and decided to accept the Bank of Brazil's credit guarantees, he said.  
SUBROTO SEES OIL MARKET CONTINUING BULLISH. Indonesian Energy Minister Subroto said he sees the oil market continuing bullish, with underlying demand expected to rise later in the year. He told a press conference in Jakarta at the end of a two-day meeting of South-East Asian Energy Ministers that he saw prices stabilizing around 18 dlrs a barrel. "The sentiment in the market is bullish and I think it will continue that way as demand will go up in the third or fourth quarters," Subroto said. Asked about the prospect for oil prices, he said: "I think they will stabilise around 18 dlrs, although there is a little turbulence ..." "Of course the spot price will fluctuate, but the official price will remain at 18 dlrs," he added.  
OPEC DEFENDING 18 DLR PRICE, SUBROTO SAYS. Indonesian Energy Minister Subroto said OPEC is deliberately under its production ceiling of 15.8 mln barrels to defend its 18 dlr a barrel price target. He told reporters at an energy conference in Jakarta that OPEC had decided to maintain its price level of 18 dlrs. "We are deliberately defending the price, so OPEC production is less than 15.8 (mln) at the moment," he stated. Asked if OPEC would increase production if prices went above 18 dlrs a barrel, he said this would be decided at the next OPEC meeting in June. "We will discuss the market situation then," he added. He said a meeting of the OPEC Differentials Committee had been postponed because "there is no need for the meeting." He did not elaborate. The committee had originally been due to meet in Vienna this week.  
WEATHER CLOSES ALEXANDRIA PORT, SUMED OIL TERMINAL. Strong winds and high seas forced the closure of Egypt's main port of Alexandria and a nearby oil terminal, port officials said. Tanker loading at the Suez-Mediterranean Arab Petroleum Pipelines Co in Sedi Kerir, southwest of here, stopped and officials said five tankers were at anchorage awaiting improved weather.  
SHELL CANADA RAISES CRUDE PRICES BY 64 CANADIAN CTS/BBL TODAY AT EDMONTON.  SHELL CANADA RAISES CRUDE PRICES BY 64 CANADIAN CTS/BBL TODAY AT EDMONTON  
ORS SEEKS CANADIAN FUNDS FOR HEAVY OIL TEST. <ORS Corp> said <Dominion Securities (Alberta) Inc> has been appointed to offer common shares in a new Canadaina company being organized to exploit heavy oil production opportunities in Canada and Western Europe. ORS said the offer for private sale of the stock being made on a best efforts basis is designed to raise five mln Canadian dlrs which the new company will invest in properties and projects using the Electromagnetic Well Stimulation Process developed by IIT Research Institute under sponsorship of ORS.  
PETROBRAS ASKS ARMY TO WITHDRAW TROOPS. Brazil's state-oil company Petrobras has asked the Army to withdraw the troops which were occupying its oil installations since Tuesday, Petrobras said in a statement. The statement said the request for the withdrawal of the troops was made because of the calmness reigning in all of its refineries. "The request was also due to the end of the seamen's strike and the willingness of the oil industry workers to sit again by the negotiating table," the statement said. Even though the Petrobras statement said the seamen's strike was over, a union spokesman said only two small shipping companies had reached a pay agreement. The overwhelming majority of Brazil's seamen remained on strike. The statement said a meeting between Petrobras and oil industry leaders was set for next Wednesday in Rio, with the presence of Labour Minister Almir Pazzionotto as a mediator. Petrobras said the request for the withdrawal of the troops was made at 1100 local hours (1400 GMT), but a company spokesman said he did not know if the troops had already been removed.  
ECUADOR BEGINS WORK ON OIL PIPELINE TO COLOMBIA. Construction workers today began building a 26 km (16 mile) pipeline to link Ecuador's jungle oilfields to a pipeline in Colombia through which Ecuadorean crude could be pumped to the Pacific Coast, Ecuadorean energy minsitry officials said. They said it would take about two months and at least 15 mln dlrs to build the pipeline from Lago Agrio in Ecuador to Puerto Colon, Colombia for connection to the Colombian pipeline, which goes to the port of Tumaco on Colombia's Pacific Ocean coast. The Lago Agrio to Puerto Colon pipeline is designed to transport between 30,000 to 50,000 barrels of day (bpd) of Ecuadorean crude to the Colombian pipeline, they said. The Colombian pipeline to Tumaco has ample room for Ecuadorean crude, they said. It is currently transporting about 17,000 bpd out of its 100,000 bpd capacity, an Ecuadorean energy ministry official said. The Ecuadorean crude reaching Tumaco will be shipped by boat to Ecuador for refining into oil products to meet domestic demand. The completion of the pipeline would allow Ecuador to resume some of production, paralysed since March six by an earthquake the night before. The tremor ruptured the country's main pipeline from jungle oilfields to the Ecuadorean port of Balao, on the Pacific Ocean. Ecuador was pumping about 260,000 bpd before the earthquake. It would take about five months to repair the pipeline to Balao, government officials said. Ecuador estimates that it will cost between 145 to 150 mln dlrs to repair oil installations damaged by the earthquake, energy ministry Javier Espinosa said.  
VENEZUELA TO LEND UP TO 12.5 MLN BARRELS OF OIL. Venezuela will lend Ecuador up to 12.5 mln barrels of crude oil to help it meet its export commitments and its domestic energy demand, Ecuadorean Energy and Mines Minister Javier Espinosa said today in a statement. Ecuador was forced to suspend exports after the pipeline connecting its jungle oil fields with the Pacific Ocean port of Balao was damaged last week by an earthquake. Venezuela would lend 50,000 barrels per day of crude for a total of up to to 7.5 mln barrels to help Ecuador meet export commitments, Espinosa said. Also, Venezuela will sell the crude and provide the foreign exchange earnings to Ecuador, he said. Ecuador would repay Venezuela in crude once it resumed its exports after repairing its pipeline to Balao, a task that would take an estimated five  months. Venezuela is lending Ecuador five mln barrels of crude for refining in this country to meet domestic demand. Ecuador would repay that loan with crude once the oil pipeline is repaired. Both countries are the only Latin American members of the Organisation of Petroleum Exporting Countries (OPEC). Ecuador was exporting about 140,000 bpd before the earthquake, Energy Ministry officials said. Its total output was around 260,000 bpd.  
PDVSA TO SIGN CHAMPLIN REFINERY DEAL MARCH 17. Petroleos de Venezuela, S.A. said it will sign a contract March 17 to buy a half interest in a Corpus Christi, Texas refinery and related operations. The contract, to be signed by PDVSA and Champlin Petroleum's parent company, the Union Pacific Corp <UNP>, will create a new joint venture called Champlin Refining. The state oil company said PDVSA will pay on the order of 30 mln dlrs for the half interest in Champlin. Energy minister Arturo Hernandez Grisanti said Wednesday the cost would be 33 mln dlrs in cash, plus an additional 60 mln in crude and refined oil shipments. PDVSA and Union Pacific have sought a line of credit from a group of North American and Japanese banks to finance the new company's working capital, the Venezuelan company said. Under the deal, PDVSA will supply up to 140,000 barrels a day to the refinery with the option to place 50,000 bpd more - mostly gasoline and distillates - through Champlin's distribution system in 10 U.S. states. The new company will be directed by a six-member board, with three representatives each from PDVSA and Union Pacific.  
SAUDIS DROP CONDITION FOR OIL SALE TO BRAZIL. Saudi Arabia has dropped its condition that Brazil secure international bank guarantees before Saudia Arabia would ship it oil, the state-oil company, Petrobras, said in a statement. Petrobras said the Saudis will accept Banco do Brasil credit guarantees. Petrobras cancelled a 40-mln dlr crude oil purchase from the Saudis yesterday after they refused to accept a letter of credit from the official Bank of Brazil. The Saudis had demanded that Brazil get credit guarantees from leading international banks. Petrobras said the Saudis had been advised that if they did not change their mind by Monday, Petrobras would negotiate the purchase of oil with other producers. The Petrobras statement said the shipment of 2.2 mln barrels will be made by the Saudis on March 24 as scheduled. The shipment is part contract signed in February for the Saudis to supply Brazil with 125,000 barrels per day until June.  
SAUDI ARABIA DECIDES TO ACCEPT BRAZIL CREDIT. Saudi Arabia has lifted the condition it imposed on the sale of oil to Brazil and will accept Banco do Brasil's credit guarantees, state-oil company Petrobras said in a statement. Petrobras cancelled a 40 mln dlr crude oil purchase from the Saudis yesterday, after they refused to accept a letter of credit from the Bank of Brazil, demanding guarantees from leading international banks. It advised the Saudis the company would negotiate oil purchases elsewhere unless they changed their mind by Monday. The 2.2 mln barrels shipment will be made by the Saudis on March 24 as scheduled, the statement said. Under a 125,000 bpd contract signed in February the Saudis agreed to supply oil to Brazil until June.  
SAUDI OIL MINISTER FORESEES NO NEED FOR NEW OPEC MEASURES BEFORE JUNE 25.  SAUDI OIL MINISTER FORESEES NO NEED FOR NEW OPEC MEASURES BEFORE JUNE 25  
SAUDI OIL MINISTER SEES NO NEED TO ALTER OPEC PACT. Saudi Arabian Oil Minister Hisham Nazer said OPEC's December agreement to stabilise oil prices at 18 dlrs a barrel was being implemented satisfactorily and there was no immediate need to change it. Nazer, in an interview with Reuters and the television news agency Visnews, said Saudi Arabia was producing around three mln barrels per day (bpd) of crude oil, well below its OPEC quota. Saudi Arabia, the world's largest oil exporter, will continue to restrain production as long as other OPEC members adhere to the pact, Nazer said. The 13-nation OPEC agreed in December to cut its production ceiling by 7.25 pct to 15.8 mln bpd and abide by fixed prices averaging 18 dlrs a barrel from February 1. Nazer, in his first interview since succeeding Ahmed Zaki Yamani last October, said: "I do not foresee any need for new measures before the 25th of June when our (next OPEC) meeting will take place as scheduled." Nazer said OPEC was producing below 15.8 mln bpd and all members were abiding by its agreements. "We've heard news every now and then of violations but they were not at all verified," he said. OPEC production curbs have boosted world oil prices from a 13-year low of around eight dlrs a barrel last August to near 18 dlrs after announcement of the December pact. Spot market prices slipped some two dlrs in February but have firmed in the past two weeks to near OPEC levels as traders gained confidence in OPEC price and output discipline. Nazer said Saudi Arabia would continue to produce below its 4.133 mln bpd quota if necessary to defend the 18 dlr price. "As long as all the OPEC members adhere to the program as devised in December, Saudi Arabia will continue to adhere to the agreement," he said. Current production of three mln bpd includes oil from the Neutral Zone shared with Kuwait, but not sales from floating storage, Nazer said. King Fahd of Saudi Arabia, in an interview with Reuters and Visnews on March 11, said the kingdom wanted oil price stability and called on non-OPEC producers to avoid harmful competition with OPEC. "Saudi Arabia doesn't decide prices by itself but certainly desires price stability," he said. Nazer said the output level did not mean the kingdom had returned to a role of "swing producer" within OPEC. Saudi Arabia allowed its output to sink as low as two mln bpd in August 1985 to compensate for slack demand and over-production by some OPEC states. "Saudi Arabia is not playing that role. It is being played by OPEC membership as a whole because the reduction in the 15.8 mln bpd share of OPEC in the market is being shared by other members of OPEC," Nazer said. Nazer said OPEC estimated demand for its oil during third quarter this year would be around 16.6 mln bpd. But he said if circumstances changed "I am sure then the OPEC members will consult with each other and take the necessary measures." Oil analysts say the OPEC pact could come under strain when demand for petroleum products generally falls in the northern hemisphere spring and summer. Nazer said he was satisfied with the extent of cooperation from non-OPEC producers. Norway, Egypt and the Soviet Union agreed to help OPEC by restraining production or exports after he visited them on OPEC's behalf earlier this year. "We did not ask any country to do anything. These were programmes they thought were necessary to stabilise market conditions and to help themselves attain better pricing conditions," Nazer said. He said it was up to countries that declined to cooperate -- such as Britain -- to come up with their own proposals if they saw fit.  
SAUDI BUSINESSMEN TO DISCUSS PRIVATE SECTOR. Saudi Arabian business leaders assembled for a conference aimed at thrashing out problems facing the private sector of the kingdom's oil-dependent economy. The meeting of some 500 top businessmen from across Saudi Arabia comes at a time of guarded optimism in industry and commerce following the OPEC pact to boost world oil prices. The four-day conference in this resort town, high in the mountains above the Tihamah plain stretching to the Red Sea, has been organised by Saudi Arabia's chambers of commerce. Finance Minister Mohammed Ali Abal-Khail and Commerce Minister Suleiman Abdulaziz al-Salim will attend the first day. Bankers and businessmen said the conference will air problems facing commerce and industry after last year's slide in oil prices and examine ways to promote higher investment in a private sector sorely short of finance. Government planners have long recognised that Saudi Arabia, the world's largest crude exporter, needs to foster private enterprise to diversify its oil-based economy. The fledgling private sector was hard hit by the Middle East recession as early as 1983 and several big manufacturing and trading companies ran into problems repaying loans. Renewed optimism this year stems largely from the accord reached by OPEC last December to curb oil output and boost prices to a benchmark level of 18 dlrs per barrel. With oil prices recovering, Saudi Arabia went ahead at the turn of the year with long-delayed budget plans incorporating a 52.7 billion riyal deficit to be bridged by drawing down foreign reserves. The simple act of publishing a budget restored a measure of confidence to the business community. Some share prices have risen by more than 35 pct since last November, while banks are generally reporting a slowdown in the number of new non-performing loans. But not all bankers are convinced. One senior corporate finance manager in Riyadh said: "Banks are still reluctant to lend ... There is certainly more optimism in the air, but I am not sure if it is firmly based." Some businessmen and bankers point out that government spending is still under tight control and the non-oil economy may still be contracting. Capital expenditure on large projects has been cut sharply. A U.S. Embassy report on Saudi Arabia published just before the budget said: "While industrialisation has continued to be one of the government's highest priorities, the recession, the payments problem and the lack of financing have reduced Saudi and foreign investor interest in industry." It is the lack of fresh investment that is expected to be a major issue among the businessmen gathered here. Official figures show the number of new licences for industrial ventures fell 24 pct in the six months to March 1986, compared with the same period in 1985. Lending by the Saudi Industrial Development Fund, a major source of industry backing, has fallen steadily since 1983. Trading companies have also been hit, some caught with huge inventories of construction equipment as recession bit. Some firms laid off workers and cut bloated inventories. Others have effectively been liquidated. A few have reached agreement with bankers to extend debt repayments. The latest rescheduling is for the shipping-to-hotels conglomerate REDEC. Its negotiators have just initialled a draft accord to restructure payments on 1.3 billion riyals of bank debt. Bankers and businessmen said the conference was also likely to discuss the apparent reluctance of U.S. And British firms to step up investment in the kingdom. A British government delegation has just left Riyadh after holding preliminary talks on ways of offsetting the huge Saudi outlay on a defence contract to supply 132 fighter aircraft worth five billion stg.  
MEES SAYS SECOND WEEK MARCH OPEC OUTPUT 14 MLN BPD. OPEC produced only about 14 mln bpd of oil in the second week of March -- 1.8 mln bpd below its ceiling -- largely because of pipeline problems in Turkey and Ecuador, the Middle East Economic Survey (MEES) estimated. A landslide breached Iraq's one mln bpd pipeline through Turkey on March 6 for a week, and earthquakes in Ecuador have shut down its export pipeline for four to five months. Ecuador has an OPEC quota of 210,000 bpd. MEES put Saudi Arabian output at 2.9 mln bpd in the first week of March and 3.1 mln bpd in the second, in addition to output from the Neutral Zone between Saudi Arabia and Kuwait. MEES said Saudi Arabia was pumping more than 300,000 bpd of its total production into floating storage. Saudi Oil Minister Hisham Nazer told Reuters and the television news agency Visnews yesterday that Saudi output, including Neutral Zone production, was around three mln bpd. The Cyprus-based newsletter also said authoritative Libyan oil sources said Libya was producing 850,000 bpd, compared with its 948,000 bpd quota, and that actual liftings are much lower than that. It said one major Libyan equity producer had partially stopped lifting its 55,000 bpd equity entitlement for March because Libya was insisting on official prices, but is still lifting 40,000 bpd of debt crude at official prices and a further 25,000 bpd of "purchase crude." It said small equity producers, with entitlements of only 2,000 to 3,000 bpd, had also told Tripoli they could not lift at official prices. MEES said Iraq had sent a telex to OPEC and member countries calling for the formation of a committee to study what it said were inequalities in marketing potential among various members. The newsletter said the Iraqi letter indicated Baghdad was having difficulty selling crude at official prices. The Iraqi telex pointed out that some member countries export substantial volumes of oil that are not subject to OPEC price regulations -- exports of refined products, equity crude on which the margins are equivalent to covert discounts and "other forms of hydrocarbons" which are marketed in package deals with crude oil.  
ECUADOR SAYS IT WILL PAY DEBT WHEN IT CAN. President Leon Febres Cordero said Ecuador would honour its debt when it had the capacity to make payments, but said foreign banks had calculated oil would have to be 25 dlrs a barrel for Ecuador to meet its commitments. Ecuador said on Friday that last week's earthquake was forcing it to reaffirm an earlier decision -- based on the slide in world oil prices -- to suspend debt payments to private foreign banks, which hold two-thirds of its 8.16 billion dlr foreign debt. "All legitimate debt is a commitment of honour," the president said during a visit to the quake zone. "A government as a sovereign entity has dignity and prestige to maintain." Private foreign banks and the World Bank had calculated oil would have to be at least 25 dlrs a barrel for Quito to be able to meet its commitments, Febres Cordero said. He added that Ecuadorean crude was now selling for 15 to 17 dlrs a barrel after having been sold for many months at 12 dlrs a barrel and as low as seven dlrs before that. Meanwhile, Ecuador announced an austerity program and a price freeze on key consumer goods as a result of the earthquake, which killed at least 300 people. Presidency Minister Patricio Quevedo said the budget would be cut by five to 10 pct, government hiring would be frozen and salaries of top officials, including the president and cabinet, would be reduced. He also said a price freeze would be imposed on 20 basic consumer items, mainly food staples, while the price of gasoline would rise by between 69 and 80 pct and bus fares would rise by 20 pct. Gasoline supplies would also be limited.  
PARIBAS SEEKING TO ADJUST ECUADOR OIL FACILITY. Banque Paribas, which arranged a 220 mln dlr loan for Ecuador last year to pre-finance oil exports, wants to adjust the terms of the facility to help the country recover from a devastating earthquake, bankers said. But the French bank's plan, which would effectively postpone repayment of about 30 mln dlrs of the loan for several months, is running into stiff resistance from many of the 52 members of the loan syndicate. The pipeline that carries all Ecuador's oil exports was ruptured in the March 5 tremor and will take some five months to repair at a cost of about 150 mln dlrs to repair. President Leon Febres Cordero on Friday estimated total damages caused by the quake at one billion dlrs and said that Ecuador as a result would maintain January's suspension of interest payments on its foreign commercial bank debt. Payments were halted in January because of the drop in the price of oil, which accounts for nearly two-thirds of Ecuador's export earnings and 60 pct of government revenue. Although sympathetic to Ecuador's plight, many banks in the Paribas facility feel that emergency financial relief is a job for international financial organizations and not for commercial banks, bankers said. The 18-month oil-financing facility, which was signed last October 28, is one of the few purely voluntary credits for a Latin American nation since the region's debt crisis erupted in August 1982. Because it was a voluntary deal, many bankers feel strongly that the orginal terms must be adhered to. Otherwise, they fear, the gradual re-establishment of normal market conditions for Latin borrowers will be set back. "There's a lot of reluctance by the other banks. They feel it's a different facility, and so any kind of suggestion of a restructuring would look bad," one banker commented.  
SAUDI OIL MINISTER SEES NO NEED TO ALTER PACT. Saudi Arabian Oil Minister Hisham Nazer said OPEC's December agreement to stabilize oil prices at 18 dlrs a barrel was being implemented satisfactorily and there was no immediate need to change it. Nazer, in an interview with Reuters and the television news agency Visnews, said Saudi Arabia was producing around three mln barrels per day (bpd) of crude oil, well below its OPEC quota. Saudi Arabia, the world's largest oil exporter, will continue to restrain production as long as other OPEC members adhere to the pact, Nazer said. The 13-nation OPEC agreed in December to cut its production ceiling by 7.25 pct to 15.8 mln bpd and abide by fixed prices averaging 18 dlrs a barrel from February 1. Nazer, in his first interview since succeeding Ahmed Zaki Yamani last October, said: "I do not foresee any need for new measures before the 25th of June when our (next OPEC) meeting will take place as scheduled." Nazer said OPEC was producing below 15.8 mln bpd and all members were abiding by its agreements. "We've heard news every now and then of violations but they were not at all verified," he said. OPEC production curbs have boosted world oil prices from a 13-year low of around eight dlrs a barrel last August to near 18 dlrs after announcement of the December pact. Spot market prices slipped some two dlrs in February but have firmed in the past two weeks to near OPEC levels as traders gained confidence in OPEC price and output discipline. Nazer said Saudi Arabia would continue to produce below its 4.133 mln bpd quota if necessary to defend the 18 dlr price. "As long as all the OPEC members adhere to the program as devised in December, Saudi Arabia will continue to adhere to the agreement," he said. Current production of three mln bpd includes oil from the Neutral Zone shared with Kuwait, but not sales from floating storage, Nazer said. King Fahd of Saudi Arabia, in an interview with Reuters and Visnews on March 11, said the kingdom wanted oil price stability and called on non-OPEC producers to avoid harmful competition with OPEC. "Saudi Arabia doesn't decide prices by itself but certainly desires price stability," he said. Nazer said the output level did not mean the kingdom had returned to a role of "swing producer" within OPEC. Saudi Arabia allowed its output to sink as low as two mln bpd in August 1985 to compensate for slack demand and over-production by some OPEC states. "Saudi Arabia is not playing that role. It is being played by OPEC membership as a whole because the reduction in the 15.8 mln bpd share of OPEC in the market is being shared by other members of OPEC," Nazer said. Nazer said OPEC estimated demand for its oil during third quarter this year would be around 16.6 mln bpd. But he said if circumstances changed "I am sure then the OPEC members will consult with each other and take the necessary measures." Oil analysts say the OPEC pact could come under strain when demand for petroleum products generally falls in the northern hemisphere spring and summer. Nazer said he was satisfied with the extent of cooperation from non-OPEC producers. Norway, Egypt and the Soviet Union agreed to help OPEC by restraining production or exports after he visited them on OPEC's behalf earlier this year. "We did not ask any country to do anything. These were programmes they thought were necessary to stabilise market conditions and to help themselves attain better pricing conditions," Nazer said. He said it was up to countries that declined to cooperate -- such as Britain -- to come up with their own proposals if they saw fit.  
SAUDIS DROP CONDITION FOR OIL SALE TO BRAZIL. Saudi Arabia has dropped its condition that Brazil secure international bank guarantees before Saudia Arabia would ship it oil, state-oil company Petrobras said in a statement. Petrobras said the Saudis will accept Banco do Brasil credit guarantees. Petrobras cancelled a 40 mln dlr crude oil purchase from the Saudis yesterday after they refused to accept a letter of credit from the official Bank of Brazil. The Saudis had demanded that Brazil get credit guarantees from leading international banks. Petrobras said the Saudis had been advised that if they did not change their mind by Monday, Petrobras would negotiate the purchase of oil with other producers. The Petrobras statement said the shipment of 2.2 mln barrels will be made by the Saudis on March 24 as scheduled. The shipment was part of a contract signed in February for the Saudis to supply Brazil with 125,000 barrels per day until June.  
STUDY PREDICTS U.S. DEPENDENCE ON FOREIGN OIL. A government study has concluded the U.S. Will be dependent on oil from the middle east into the next century and must take steps to reduce its vulnerability, the New York Times said. The newspaper said the inter-agency government study found a serious oil-dependency problem due to steadily falling domestic production and rising demand for imported oil. The study concluded that by 1995 the U.S. Will be relying on foreign countries for 50 pct of its oil, more than the peak of 48 pct reached in 1977 and far above the 33 pct rate during the 1973-74 Arab oil embargo. The U.S. Now imports about 38 pct of its oil needs, up from 27 pct a year ago, the New York Times said. It said recommendations sent to the White House by Energy Secretary John Harrington include financial incentives to raise domestic oil production by one mln barrels a day from the current 8.4 mln barrels. The newspaper said the administration has placed increased emphasis on stockpiling oil reserves. It said the view now held is that the Strategic Petroleum Reserve to be tapped in times of shortages, should be increased by 100,000 barrels a day, rather than 35,000 as called for in the 1988 budget. The newspaper said Harrington may propose restoring the depletion allowance to major producers. "The administration also plans to renew its efforts to ...Repeal the windfall profits tax, remove bars to drilling on the outer continental shelf and repeal the law that limits the use of natural gas in industrial and utility boilers," it added. The New York Times quoted Senator Don Nickles of Oklahoma as saying the study greatly underestimated potential U.S. Demand for imported oil in the next decade and overestimated the amount of domestic oil which would be produced.  
SHEARSON LEHMAN UPGRADES U.S. OIL STOCKS. Analyst Sanford Margoshes of Shearson Lehman Brothers said he recommended a number of oil stocks today now that it is apparent that OPEC has succeeded in holding to its prescribed production quotas. "It is clear that OPEC, through jawboning and quota restraint, will boost the price of oil," Margoshes said. Prices of oil stocks rose sharply today in response to higher oil prices and optimism about OPEC quotas. Margoshes said he recommends Imperial Oil <IMO.A>, up 1/2 to 49-1/8, Standard Oil Co <SRD>, 7/8 to 62-3/4, Exxon <XON> one to 83-1/8, and Chevron <CHV> 1-1/8 to 54-7/8. In addition, Margoshes said he recommended Atlantic Richfield <ARC> on a short-term basis, though he said he is still suspect about its debt situation. Atlantic Richfield rose 1-3/4 to 77. He said "the market could come down to test the 16 dlr a barrel level again, but the main thrust of investing in oil is positive right now. Before the year is out we will see higher oil prices." He noted that belief that the government is interested in raising the strategic reserves is factored into the rise in oil stocks today.  
EXXON <XON> MAY CLOSE ONE FRENCH REFINERY. Exxon Corp, the world's largest oil company, said in a published interview today that it was reviewing its worldwide refinery operations and might decide to close on of its french refineries. Lee R. Raymond, Exxon's new president, singled out the possibility of a closure of one of Exxon's refineries in France during the interview. An Exxon spokeswoman confirmed that Raymond had specifically mentioned refineries in France but said that no specific refinery had been named. She also said that all of Exxon's opertations were under constant review. Exxon currently has two refineries in France, FOS in the mediterranean with a capcity of 175,000 barrels per day and Port Jerome west of paris with a similar capacity. Petroleum Intelligence Weekly, an influential trade journal, said, in its current issue, that they understood that Exxon was looking at the possibility of refinery closures in Antwerp, Southern France or possibly Italy. Paul Mlotok, oil analyst with Salomon Brothers inc said that with the closures Exxon made in 1986 in Europe and the improvement in the European refining situation, its future profits there should be good. "Exxon and other major oil companies have closed a bunch of refineries in Europe, upgraded the rest and shaken many of the indepedents out of the market. Now with demand for products rising and efficient operations, Exxon should show superior earnings," Mlotok said. "Just after Royal Dutch <RD>, they are seen as one of the highest grade refiners in Europe," he added. Industry sources said that the oil companies were likely to feel greater pressure on their operations in Southern Europe where competition from the OPEC countries is increasing as these producers move further into downstream operations. PIW said that refiners in the Mediterranean can expect increased shipments from Saudi Arabia and other OPEC export refineries. PIW said "sales from Libya, Algeria and elsewhere are expected to reclaim markets lost to Italian and other European refiners as a result of the abundance of cheap netback oil last year."  
LAWSON OIL TAX BREAKS TO HELP NEW FIELDS - REVENUE. Two new U.K. Tax relief measures for oil producers, announced today, are aimed at encouraging developments in the North Sea to go ahead and boost opportunities for the offshore supplies industry, the Inland Revenue said in a post-budget statement. Earlier, Chancellor of the Exchequer Nigel Lawson announced in his annual budget to Parliament that from today, companies will be allowed to offset up to 10 pct of qualifying development expenditure on certain future oil fields against Petroleum Revenue Tax (PRT). To date, full relief was allowed for expenditure on an individual field itself, when its income stream began, but was not immediately available against other development expenditure, the statement said. The new relief will apply to fields outside the southern basin for which development consent is first given on or after today, and will improve the post-tax economics of new developments and encourage companies to proceed with project which might have been delayed, it said. Lawson also announced that he would henceforth allow certain expenditure on oil related research which does not at present qualify for PRT relief to be offset against PRT liability. This means oil-related expenditure in the U.K. Or on the U.K. Continental shelf, which has not become allowable in a particular field within three years of being incurred, to be allowed against PRT liability in any oil field, the Inland Revenue said. This brings the scope of PRT relief for research costs more in line with corporation tax relief measures, and is planned to encourage general research into ways of reducing field development costs, it said. In due course, the industry should benefit by over 100 mln stg a year, it calculated. The Inland Revenue statement also included other technical measures that Lawson did not comment on in his budget speech. These included measures to allow companies to balance their shares of PRT-exempt oil allowances through reallocation in two past periods of allowance utilisation. Tidier rules on incorrectly allowed PRT expenditure reliefs were announced, while there were also ammendments on rules on corporation tax and Advance Corporation Tax relating to the so-called "ring fence" of activities in the U.K. And its continental shelf. The Finance Bill will have provisions for the implementation of measures announced in November, it said. Gareth Lewis Davies, a North Sea expert with stockbrokers Wood Mackenzie and Co Inc in Edinburgh, thought the two reliefs on PRT would help the depressed offshore industry. He said the 10 pct cross field allowance relief would favour chances that development of smaller North Sea fields such Osprey, Don and Arbroath would be brought forward. Early development of the larger Miller and Bruce oil fields might also be encouraged, he said. Lewis Davies said the measure might also aid the offshore construction industry, which suffered a huge amount of lay-offs under the price slump of more than 50 pct last year. He pointed out that the relief only applies to the development of new fields outside the Southern Basin. This means more jobs could be created, as the fields in the central and northern sectors of the North Sea are deeper than in the south and thus have greater capital and labour requirements as the waters are deeper than in the south. He said the PRT relief for certain research expenditure would help fundamental research in the oil industry, although the benefits of this research would not be seen for several year.  
PLAINS <PLNS> POSTS RESERVES INCREASES. Plains Resources Inc said that as of December 31, its estimated proved oil and gas reserves rose by 27 pct to 5.43 mln barrels from 4.27 mln barrels and proved developed reserves rose 16 pct to four mln barrels from 3.45 mln barrels a year ago. The company said its year end reserves did not include the oil and gas reserves of Houston Oil Fields Co which recently agreed to merge with it, pending shareholder approval in mid-April. If approved, the merger will add another 3.2 mln barrels to the company's reserve base.  
U.S. WARNS OF DEPENDENCE ON FOREIGN OIL. A White House-ordered report said that growing U.S. reliance on foreign oil into the year 2000 could have potentially damaging implications for national security. The Energy Department study discusses several options to curb reliance on foreign oil, but makes no recommendations. President Reagan and most Congressmen have previously ruled out a tax on foreign oil as a way to curb imports and to help the depressed domestic oil industry. Energy Secretary John Herrington said in a statement that "although we have made gains in energy security in the last six years, this report shows that there is justification for national concern both over declining competitiveness of our domestic oil and gas industry and over rising oil imports." The report said imports last year were 33 pct of U.S. consumption and by the mid-1990s could rise to 50 pct. Among the report's options to ease U.S. reliance on foreign oil are several already advocated by the Reagan Administration. President Reagan ordered the study last September, citing a determination that the country never again become captive to a foreign oil cartel, referring to the OPEC-led oil shortages and sharp prices increases of the 1970s. The report said an import fee would raise prices and help make it economical for U.S. oil firms to find and produce new oil, as well as to cut imports, but on the whole the tax would depress the nation's economy.  
U.S OIL TAX WOULD NOT AFFECT PDVSA-CHAMPLIN DEAL. an eventual oil import fee in the united states will make no difference to champlin petroleum corp's joint venture agreement signed today with petroleos de venezuela (pdvsa), champlin chairman william adams said. "this was an aspect which was discussed at length during the negotiations, but we can say our contract covers all eventualities in this regard," he told reuters during the signing ceremony here. Venezuela's energy and mines minister arturo hernandez grisanti earlier described the agreement, under which pdvsa buys 50 pct of champlin's corpus christi refinery, as "one more step in the maturation and presence of our oil industry in world markets." union pacific chairman william cook said the agreement will be beneficial to both sides, combining a secure source of supply with a modern refinery and access to markets. "we are looking to a long-term relationship, and at a time of protectionist tendencies in the U.S. Congress there are clear benefits to both sides," he said. Adams said pdvsa crude would remain competitive even with an oil import fee because champlin had invested heavily over the years in adapingthe texas refinery to process venezuelan heavy crudes with coking and hydro-treating facilities and obtain a competitive product yield. "therefore while the danger of an oil import fee has been a consideration in the negotiations, and it remains to be seen what such a fee would represent, we do not foresee any impact on today's agreement," adams said. He said the refinery could run crude as heavy as venezuela's bolivar coastal field (bcf) 17 api without any difficultiesand would probably move over time to a heavier diet to take advantage of bigger margins. The refinery has a capacity to process up to 110,000 bpd of venezuelan high sulphur content heavy crude, with an 80-85 pct yield of white products.  
HERRINGTON SAYS HE MAY RECOMMEND TAX BENEFITS FOR U.S. OIL INDUSTRY.  HERRINGTON SAYS HE MAY RECOMMEND TAX BENEFITS FOR U.S. OIL INDUSTRY  
HERRINGTON SAYS HE MAY CALL FOR OIL TAX BENEFITS. Energy Secretary John Herrington said he may recommend to the White House that the domestic oil industry be given tax benefits to help it produce more oil and head off increasing U.S. dependence on foreign oil. He said also at a news conference that he would recommend to the White House that the fill rate of the Strategic Petroleum Reserve be increased from its planned 35,000 barrels per day. The oil reserve fill rate capacity is 100,000 barrels a day. Herrington said he had always advocated a greater fill rate for the petroleum reserve, but the rate had been kept down because of budgetary constraints. Herrington did not disclose what tax incentives he might advocate, but U.S. officials have shown interest in tax benefits for oil and gas exploration and for research and development into new ways to extract oil which is now considered uneconomical to produce. He made the remarks in conjunction with the release of the Energy Department's study on oil's impact on national security. Herrington said that before he disclosed what recommendations for tax benefits for the oil and gas industry he might make, he would raise the matter with the White House Economic Policy Committee to see if the proposals to increase oil production made good tax policy. He said he would like to increase U.S. production by one mln barrels a day. The report said that by the end of the century the United States may be relying on foreign sources for 50 pct of its oil consumption, posing a serious economic and national security threat.  
WAINCO OIL <WOL> COMPLETES WILDCAT WELL. Wainco Oil Corp said it has completed a wildcat well on its GrandMarais prspect in Jefferson Davis Parish, La., which is currently producing at a rate of 1.1 mln cubic feet of gas and 40 barrels of condensate daily. The company said it has a 20 pct working interest in the well which is flowing from Lower Frion Tweedel Sand perforations between 10,104 and 10,110 feet. Additional untested but possibly productive zones exist behind the pipe, it added. It said the remaining owners are privately held petroleum companies.  
U.S. WARNS OF DEPENDENCE ON FOREIGN OIL. A White House-ordered report said that growing U.S. reliance on foreign oil into the year 2000 could have potentially damaging implications for national security. The Energy Department study discusses several options to curb reliance on foreign oil, but makes no recommendations. President Reagan and most Congressmen have previously ruled out a tax on foreign oil as a way to curb imports and to help the depressed domestic oil industry. Energy Secretary John Herrington said in a statement that "although we have made gains in energy security in the last six years, this report shows that there is justification for national concern both over declining competitiveness of our domestic oil and gas industry and over rising oil imports." The report said imports last year were 33 pct of U.S. consumption and by the mid-1990s could rise to 50 pct. Among the report's options to ease U.S. reliance on foreign oil are several already advocated by the Reagan Administration. President Reagan ordered the study last September, citing a determination that the country never again become captive to a foreign oil cartel, referring to the OPEC-led oil shortages and sharp prices increases of the 1970s. The report said an import fee would raise prices and help make it economical for U.S. oil firms to find and produce new oil, as well as to cut imports, but on the whole the tax would depress the nation's economy. The study was outlined in a New York Times report today.  
OPEC WANTS 18 DLR OIL PRICE - OAPEC OFFICIAL. OPEC believes world oil prices should be set around a fixed average price of 18 dlrs a barrel, OAPEC Assistant General Secretary Abdelaziz Al-Wattari said today. In a speech to a European Community (EC)/OAPEC/OPEC seminar in Luxembourg released here, Al-Wattari said: "OPEC believes ...The world energy trade should be kept without restrictions and should be built around a fixed average price of 18 dlrs." But he warned that defense of the 18 dlr a barrel level had caused hardship for OPEC countries, who had been forced to curtail production, and he warned that such cutbacks by OPEC states could not be sustained in some cases. "For OPEC to stabilize the world oil price at what is now considered the optimal level of 18 dlrs a barrel, its member countries have had to undergo severe hardship in curtailing production," Al-Wattari said. "Such cutbacks ... Cannot, in certain cases, be sustained," Al-Wattari said. As well as financial and marketing pressures, some states depended on associated gas output for domestic use and oil cutbacks had left insufficient gas supplies, he added. Al-Wattari noted that total OPEC output was below the organization's agreed ceiling for all member countries in February, although this had meant sacrifices. The effect of these sacrifices meant that market stability, though restored to a good level, was still under pressure, Al-Wattari said. "A lasting stability in the world market requires a wider scope of international cooperation," he added. He said some non-OPEC oil producing countries had shown a political willingness after 1986 to cooperate with OPEC. But although cutbacks announced by these states were politically significant and welcomed by OPEC, they were insufficient in terms of volume, he added. "The overall majority of non-OPEC producers have not responded sufficiently to OPEC's calls for supply regulation," he said. Al-Wattari said an 18 dlr a barrel price was optimal as it allowed investment in the oil industry outside OPEC to continue, while not generating excessive cash flow for otherwise unviable high-cost areas outside OPEC. Such a price would no longer encourage protectionist measures, he added. Fadhil Al-Chalabi, OPEC Deputy Secretary General, also addressing the seminar, added that discipline was still needed to prevent violent fluctuations in the oil market. Cooperation between Arab states and Europe was advantageous for both sides, Al-Chalabi said, adding he hoped cooperation would ultimately lead to full-fledged Euro-Arab dialogue.  
VENEZUELA-ECUADOR OIL LOAN UNDER DISCUSSION. Venezuela has still to work out final details of its plan to supply Ecuador with 50,000 barrels per day of crude oil to compensate that country for lost exports caused by earthquake damage, a senior Petroleos de Venezuela (PDVSA) official said. "We have yet to finalize details on how the compensation will be carried out and how OPEC production quotas will be affected," he said during the signing of a joint venture deal with Union Pacific Corp today. He said an agreement was initialled on a visit last week by Ecuador's deputy energy minister Fernando Santos Alvite. He pointed out that there are some contractual points to be considered. Venezuela, possibly unique among oil exporters, requires its clients to sign final destination clauses to ensure its oil is not resold on the spot market. Ecuador's oil minister Javier Espinosa was quoted today as saying Venezuela will export the oil on Ecuador's account and remit the revenues to Quito. Ecuador would pay back the oil at a rate of 35,000 bpd. He said Venezuela's oil would be traded through Ecuadorean state oil company Cepe, but the PDVSA official said the company never allows third parties to trade its oil.  
U.K. OIL REVENUE FORECAST TO FALL IN 1987/88. The U.K. Government forecasts that oil revenues will fall to four billion stg in the fiscal year 1987/88, from 4.75 billion in 1986/87 and 11.5 billion in 1985/86. The forecast came in the Treasury's Financial Statement and Budget Report issued after the Chancellor of the Exchequer Nigel Lawson's annual budget statement to parliament. The government is assuming the price of oil will average 15 dlrs a barrel, in line with its earlier forecasts, and its oil revenue calculation is based on an exchange rate remaining close to current levels, the Treasury document said. The Treasury said the 1987/88 oil revenue shortfall will reflect the oil price fall of 1986, as North Sea corporation tax is paid after a time lag. The statement calculated that a one dlr a barrel difference in oil prices this year will change revenue by about 350 mln stg for the current fiscal year, and 400 mln stg in a full year. Oil production is forecast to fall slightly in 1987, according to the statement. A change in one mln tonnes in production would alter revenue by about 45 mln stg in 1987/88 and 50 mln stg in a full year, it added. Total general government receipts for 1986/87 are now estimated to be 159.2 billion stg, 2.75 billion more than the 1986 Budget forecasts and above the Autumn Statement forecasts, despite a shortfall of 1.25 billlion in oil receipts. Additional non-North Sea corporation tax of 1.75 billion stg and VAT of 750 mln stg account for the bulk of the overshoot. Total general government receipts were forecast to rise to 168.8 billion stg in fiscal 1987/88, and among the main items, besides diminishing oil revenues, were projected income tax of 40 billion stg, up from 38.4 billion in the current year. Non-North Sea corporation tax is forecast to bring in 13.5 billion stg in 1987/88, after the revised 11.2 billion in 1986/87, and VAT revenue should amount to 23.3 billion, compared with upwardly revised estimated 21.5 billion this fiscal year. The general government expenditure for the coming fiscal year is expected to total 173.5 billion stg, up from a revised 164.9 billion in the current year. A repayment of 800 mln on public corporations' market and overseas borrowings is forecast to bring the total Public Sector Borrowing Requirement down to 3.9 billion stg in 1987/88, from this year's revised 4.1 billion, the Treasury said.  
OPEC WANTS 18 DLR OIL PRICE - OAPEC OFFICIAL. OPEC believes world oil prices should be set around a fixed average price of 18 dlrs a barrel, OAPEC Assistant General Secretary Abdelaziz Al-Wattari said. In a speech to a European Community/OAPEC/OPEC seminar in Luxembourg released here, Al-Wattari said, "OPEC believes ...the world energy trade should be kept without restrictions and should be built around a fixed average price of 18 dlrs." Al-Wattari noted that total OPEC output was below the organization's agreed ceiling for all member countries in February, although this had meant sacrifices. The effect of these sacrifices meant that market stability, though restored to a good level, was still under pressure, Al-Wattari said. "A lasting stability in the world market requires a wider scope of international cooperation," he said.  
SENATOR SAYS ENERGY REPORT ASSUMPTIONS FLAWED. Sen. Pete Domenici, a main sponsor of legislation to set an oil import fee, said the administration's energy security report was based on flawed economic assumptions. The New Mexico Republican said the report did not take into account the last few weeks' drop in domestic oil production in its statement that an oil fee would raise prices for consumers. The report said a decline in economic growth as a result of the fee would reduce tax revenues. "A five dlr (per barrel) oil import fee will provide the stimulus to create jobs and investment, " and raise revenues, he said.  
API SAYS DISTILLATE STOCKS OFF 7.35 MLN BBLS, GASOLINE OFF 2.89 MLN, CRUDE OFF 4.39 MLN.  API SAYS DISTILLATE STOCKS OFF 7.35 MLN BBLS, GASOLINE OFF 2.89 MLN, CRUDE OFF 4.39 MLN  
API SAYS DISTILLATE, GAS STOCKS OFF IN WEEK. Distillate fuel stocks held in primary storage fell by 7.35 mln barrels in the week ended March 13 to 112.74 mln barrels from a revised 120.09 mln the previous week, the American Petroleum Institute (API) said. In its weekly statistical bulletin, the oil industry trade group said gasoline stocks fell 2.89 mln barrels to 248.44 mln barrels from a revised 251.33 mln, and crude oil stocks dropped 4.39 mln barrels to 325.13 mln from a revised 329.52 mln. It said residual fuel stocks fell 250,000 barrels to 35.73 mln from 35.98 mln barrels. API said refinery runs in the week rose to 11.80 mln barrels per day (bpd) from a revised 11.70 mln and refinery use of operating capacity was 75.7 pct, up from a revised 75.0 pct. Crude oil imports in the week rose to 3.66 mln bpd from a revised 2.67 mln, API added.  
KUWAIT SAYS NO OPEC MEMBER VIOLATING OUTPUT QUOTA. Kuwaiti Oil Minister Sheikh Ali al-Khalifa al-Sabah said in a newspaper interview that no OPEC member was exceeding oil production quotas allocated by the 13-nation group. Sheikh Ali told Kuwait's daily al-Anba "All OPEC states, without exception, are producing within the quotas allocated to them. Some of them are producing less." Some oil industry sources had said the United Arab Emirates, which had been generally been producing over its quota since OPEC returned to quotas last September, was still pumping more than its allotted amount in the first months of this year. Ecuador had also publicly stated it was over its quota, but an earthquake early this month stopped that. Iraq has rejected its quota, but oil sources say it may be having problems marketing at official prices all the oil it wants to sell. OPEC agreed in December to cut overall oil production by 7.25 pct to 15.8 mln barrels per day (bpd) for the first six months of this year and abide by fixed prices around 18 dlrs a barrel from February 1.  
TEXACO <TX> TO CEASE POSTING TEXAS OIL PRICE. Texaco Refining and Marketing, an operating subsidiary of Texaco Inc, said it would cease to post crude oil prices for West Texas crudes at the end of this month following a decision to discontinue purchase of crude oil from leases, a Texaco spokesman in Houston said. But it will continue to purchase quantities of U.S. and foreign crude oil for use in its refinery system, he added. The spokesman also said Texaco Trading and Transport Inc would continue to acquire and market Texaco lease production as well as other lease production. The company will continue to post a Louisiana price, it said.  
MALAYSIA TO CUT OIL OUTPUT FURTHER, TRADERS SAY. Malaysia's state oil company Petronas will cut oil production to 420,000 barrels per day (bpd) from May 1, trade sources said. Malaysia cut its 510,000 bpd target output by 10 pct last September to support Opec moves to boost prices, and the latest cut would reduce output by 17.5 pct from 1986's target level. Petronas said in February that Malaysia would maintain its 10 pct production cutback until mid-1987. However, the Finance Ministry said in its annual report that Malaysia's crude oil output was expected to rise to an average 510,000 bpd in 1987. The ministry's forecast assumed average 1987 crude prices at 13 dlrs/barrel (bbl), but prices have risen enough to permit further production cutbacks, the sources said. Malaysia's benchmark Tapis blend fetched above 18 dlrs/bbl this year against a low of 10.50 dlrs/bbl in July, they said. Traders said further reductions by Malaysia would add to the tight spot availabilities of Asian grades caused by reduced Indonesian and Chinese crude output. The cutback will also help Malaysia maintain prices, as there is concern some buyers want to reduce term purchases due to the availability of cheaper alternatives, the sources said. In addition to term sales, Petronas has been offering two to three 400,000 bbl spot cargoes of Malaysian crude each month for sale through tender, the sources said. However, this practice is likely to dwindle given the reduced scale of production, they said.  
DOE SECRETARY FAVORS HIGHER SPR FILL RATE. Energy Secretary John Herrington said he believes the Reagan Administration will review its decision to cut the fill rate of the Strategic Petroleum Reserve because of a department report issued yesterday warning of growing U.S. dependence on oil imports. "As part of this study, I think the Administration will take the fill rate under review," Herrington said at a House Energy subcommittee hearing. The Administration has proposed cutting the fill rate from 75,000 barrels of oil per day to 35,000 bpd in fiscal year 1988 to save money. "My personal feeling is that is too low. I favor the maximum fill rate (of 100,000 bpd)," Herrington said.  
U.S. OIL TAX BREAK PROPOSAL TO BE EXAMINED. The White House said a proposal for a tax break for the oil industry would undergo review. Spokesman Marlin Fitzwater said President Reagan had no position on recommendations submitted by Energy Secretary John Herrington to encourage investment in the hard hit domestic oil industry. But Fitzwater noted that Reagan did have a fundamental objection to tax rises and special tax breaks. He said that even though Herrington's recommendation did not agree with existing policy, "We'll take a look at it." The review will be undertaken by the president's Domestic Policy Council. Herrington's proposal was reported by the Washington Post to have been made in a letter to Reagan submitting a study that found the United States would be importing half of its oil by the 1990s, threatening U.S. national security.  
DOE SECRETARY PROPOSES OIL TAX INCENTIVES. Energy Secretary John Herrington said he will propose tax incentives to increase domestic oil and natural gas exploration and production to the Reagan Administration for consideration. "These options boost production, while avoiding the huge costs associated with proposals like an oil import fee," Herrington told a House Energy subcommittee hearing. "It is my intention to submit these proposals to the domestic policy council and the cabinet for consideration and review." "The goal of the Administration policies is to increase domestic production. I would like to shoot for one mln barrels a day," he said. The proposals were based on a DOE study released yesterday warning the United States was threatened by a growing dependence on oil imports. "We project free world dependence on Persian Gulf oil at 65 pct by 1995," Herrington said.  
NO IMMEDIATE PLANS TO CLOSE REFINERY - ESSO SAF. ESSO SAF <ESSF.PA>, the French subsidiary of Exxon Corp <XON>, said it had no immediate plans to shut down one of its two refineries. Exxon's new president Lee R. Raymond said earlier that it could decide to close a French refinery. An ESSO SAF spokesman said a closure was a hypothesis that depended on the evolution of the market and refineries' ability to make money. He said Port Jerome west of Paris and Fos sur Mer on the Mediterranean had benefitted from new investment over 1985-86 and had last year broken even after stock losses. The Port Jerome refinery has an annual production capacity of seven mln tonnes while Fos sur Mer's is five mln, the spokesman added. Industry sources said the easiest plant to dispose of would be Fos sur Mer because it is a single refinery, while the Port Jerome refinery is attached to a wider complex comprising a petrochemical plant and a lubricant production plant. Raymond was quoted as saying in a published interview that Exxon was reviewing its worldwide refinery operations and might decide to close one of its French refineries.  
CANTERRA ENERGY TO DRILL WELL OFF NOVA SCOTIA. <Canterra Energy Ltd> said it will drill an exploratory well on the Scotian shelf, about 280 kilometers east-southeast of Halifax, Nova Scotia. Drilling will begin in late April 1987 in 61 meters of water and will be drilled to a total depth of 3,500 meters, Canterra said. Canterra will operate the well and has a 39 pct interest in it. <Petro-Canada Inc> has 26 pct, <Trillium Exploration Corp> has 20 pct and <Nova Scotia Resources (Ventures) Ltd> has 15 pct.  
ECONOMIC SPOTLIGHT - SAUDI ARABIA RESHAPES ECONOMY. Higher world oil prices, coupled with a new realism ushered in by austerity, could lift Saudi Arabia's economy after five years of falling revenue and growing budget deficits, bankers and diplomats said. The months ahead will prove critical as the government attempts a balancing act between defending higher oil prices and fostering recovery through a bigger role for the private sector. Economists said oil earnings could recover this year to about 20 billion dlrs and nominal gross domestic product could grow by about three pct, the first rise since 1982. But the economists said this will be possible only if the Organisation of Petroleum Exporting Countries (OPEC) succeeds in defending world oil prices and if Saudi Arabia is not forced to curtail output for too long. Saudi Arabia is now keeping production down to defend OPEC's newly-established 18 dlr a barrel benchmark price. Oil Minister Hisham Nazer told Reuters output is running at about three mln barrels per day (bpd), well down on Saudi Arabia's OPEC quota of 4.13 mln set for the first half of 1987. King Fahd has stamped his personal authority on OPEC's new-found determination to defend prices in a move Western diplomats believe underlines the kingdom's need to secure a stable source of income for its economy. Saudi Arabia, still the world's largest oil exporter, is a hugely wealthy country. But the past five years of declining revenue have taken their toll. Economists estimate gross domestic product fell 10 pct last year and 8.6 pct in 1985. Oil revenue last year, when prices briefly dipped below 10 dlrs per barrel, probably totalled no more than 17.5 billion dlrs, compared to a peak 101.8 billion in 1981. "Austerity is still the watchword, but Saudi Arabia will not be allowed to dip further into recession ... The Saudis can afford to draw down reserves temporarily to offset the worst effects," a diplomat said. In the short-term, the kingdom can lessen the impact of lower oil revenues and a gaping budget deficit by drawing on foreign reserves, still put at around 100 billion dlrs. But such a policy cannot be pursued indefinitely. Bankers and diplomats said it would amount to fiscal recklessness in the longer term. It also increases the dominance of the public sector at a time when the government is publicly urging private enterprise to take over the lead role in the economy. Bankers and diplomats said the government is well aware of the risks attached to this policy but is determined to "tough it out" on the oil front even if that means a short-term depletion of reserves. The 1987 budget deficit is targetted at a huge 52.7 billion riyals or 31 pct of total outlay. The budget explicitly recognises the need to draw down reserves while foreign borrowing has been ruled out. Commerce Minister Suleiman Abdulaziz al-Salim told Saudi businessmen this week the government had carefully considered the need to stimulate the economy when drawing up its budget plans late last year. "It therefore took the bold step of withdrawing more than 50 billion riyals from its reserves and pumping it into the economy," he said. Reserves were built up during the late 1970's and early 1980's when Saudi Arabia's breakneck pace of construction and tales of high spending became legendary. The shrinking economy has wrought huge changes in the fabric of the Kingdom's private sector where poor management had gone unpunished in the easy days of the oil boom. Modern techniques of cost control have been introduced, markets expanded and outsized labour forces and inventories cut back. The expatriate workforce has fallen sharply. The number of new bankruptcies appears to be declining but Saudi banks, hit hard by non-performing loans to the corporate sector, have become highly selective in extending new credit. Government moves to encourage lending and investigate company complaints about late public sector contract payments could boost confidence but recession has slowed the nation's industrialisation program and discouraged foreign investment. Private wealth is still very high and banks report more and more cash being placed on deposit. As Saudi Arabia attempts to shift the weight of economic development from the public to the private sector, one of the biggest tasks will be to convince businessmen to channel personal savings into industrial projects within the kingdom and refrain from the temptation to invest abroad.  
CANADIAN ROXY IN NEW ALBERTA OIL DISCOVERY. <Canadian Roxy Petroleum Ltd> said a new oil discovery in the Peerless Lake area of north-central Alberta is capable of flowing at over 1,000 barrels of oil a day from a lower zone and more than 1,500 barrels a day from a separate upper zone. Canadian Roxy has a 35 pct interest in the five-year royalty free well, known as the Canadian Roxy et Al Trout A14-8-89-3 W5M. Texaco Canada Inc holds 25 pct, MLC Oil and Gas Ltd 15 pct, Northstar Energy Corp 13.5 pct and Tricentrol Oils Ltd 11.5 pct. Canadian Roxy said drilling has started on a follow-up exploratory well about one mile northwest of the discovery well. The company said it holds a net 6,500 acres in the vicinity of the discovery and a seismic program is underway to evaluate further drilling opportunities.  
U.S. ENERGY CHIEF SEES PROMISE IN OIL-TAX CHANGE. Energy Secretary John Herrington said his proposed option to raise the oil depletion allowance to 27.5 pct was probably the most economically promising way to spur domestic production. The White House has said it would consider the option although it was generally opposed to any revisions in the new tax code. Herrington told a meeting of the Mid-Continent Oil and Gas Association that the higher depletion allowance on new oil and enhanced oil recovery would cost taxpayers about 200 mln dlrs a year. The option was one of many contained in a report on oil and the national security the Energy Department sent to the White House on Tuesday. Herrington said of the increased depletion allowance option: "that is one that could significantly increase production at a very low cost to the American taxpayer." He again rejected an oil import fee as far too costly to the overall U.S. economy.  
API SAYS U.S. CRUDE OIL OUPUT OFF FROM YEAR AGO. The American Petroleum Institute said that U.S. crude oil production in February declined 9.8 pct from year-ago levels to about 8.3 mln barrels a day. In its monthly report on U.S. oil supplies and stocks, API said that domestic demand for petroleum products, as measured by products supplied, continued to rise reaching 16.3 mln barrels a day in the month, up 1.5 pct from February 1986. API noted the drop in crude oil output coupled with a drop in natural gas liquids production, which was off 11 pct from February 1986 levels, represented a decline in U.S. production of more than one mln barrels a day. API said the decline in domestic production and the rise in demand brought petroleum imports to about six mln barrels a day in February, a 30.3 pct increase from last year's level. So far this year, API said growth in domestic demand, which was up 2.9 pct from last year's year-to-date level, has slowed in comparison to the accelerated growth in the last half of 1986. It said crude oil production for the first two months of 1987 was off 8.6 pct from the comparable year-ago period while crude imports were up 30.6 pct.  
UK CROSS FIELD PRT RELIEF FAVOURS SMALLER FIELDS. The "cross field allowance" relief on Petroleum Revenue Tax (PRT) announced by U.K. Chancellor of the Exchequer Nigel Lawson this week will favour smaller non-PRT paying fields, according to stockbrokers Wood Mackenzie and Co. The cross field allowance offsets up to 10 pct of qualifying spending on a new oil field against PRT liability of other fields. It is restricted to new offshore developments outside the southern basin and yet to gain Annex B approval. A report by the stockbrokers said that on a new field not paying PRT due to its small size, the relief would directly benefit in PRT saving on an existing field. "The cross field allowance will mainly benefit participators in those fields which have no PRT liability," the report said, adding that the timing of development of such fields may be advanced. The government would in effect be subsidising these developments at 7.5 pct of capital expenditure before corporation tax, the report said. On fields likely to pay PRT in the future, the benefit is of timing. Although liabilities on other existing fields will be reduced immediately, liabilities on larger new fields will rise in the future due to the loss of offsets, it said. In a study on probable fields, the report said that when the rates of return are examined, the rise for a PRT-paying field such as Miller, the largest undeveloped oil field in the U.K. North Sea, is from 18.7 to 19 pct, while the rise for a small non-PRT paying field such as Kittiwake is 15.9 to 17.9 pct. The report added that in fields which pay PRT, there will be a cost in being able to have this early relief. Not only will these costs be unavailable for offset against the field's future profits, but uplift of some 35 pct on these costs will be lost. Thus, a saving of PRT of 100 when field development starts will have to be matched by a rise in PRT of 135 at a later time.  
ECUADOR GETS LOAN TO HELP REPAIR OIL PIPELINE. The Andean Development Corp (CAF) said today it is lending 11.7 mln dlrs to Ecuador to help repair 25 miles of oil pipeline destroyed by an earthquake earlier this month. the loan was signed here today in the offices of the caracas based caf by the corporation's president, galo montano perez and ecuadorean ambassador antonio parra gil. the loan had originally been intended to finance an expansion of the pipeline, but following the earthquake the ecuadorean government asked for the terms to be changed so as to permit their use in reconstruction. Ecuador expects oil production to be suspended for four months as a result of the damage, and has asked Venezuela to help by supplying 50,000 barrels per day while the pipeline is repaired. The OPEC member has a production quota of 210,000 bpd but has asked the organization to allow it to produce 310,000 bpd once the repairs are completed so as to compensate the loss.  
REAGAN SAYS U.S. MUST DO MORE TO LESSEN RELIANCE ON FOREIGN OIL.  REAGAN SAYS U.S. MUST DO MORE TO LESSEN RELIANCE ON FOREIGN OIL  
REAGAN SAYS U.S. NEEDS TO LESSEN OIL IMPORTS. President Reagan said the United States must do more to lessen its reliance on imported oil. President Reagan said during a nationally televised news conference that the rising U.S. reliance on foreign oil is a problem that the administration is studying. "We have to study this more," Reagan said. "This is why we increased the Strategic (Petroleum) Reserve, but we have to do more," he said. Reagan said his administration has already proposed deregulating natural gas and eliminating the windfall profits tax on crude oil production. However, he complained that Congress had not yet approved those measures. The Department of Energy earlier this week released a report that warned of rising U.S. reliance on foreign oil imports at a time when domestic production is declining. It suggested options for the administration to consider, but made no specific recommendations.  
REAGAN SAYS U.S. NEEDS TO LESSEN OIL IMPORTS. President Reagan said the United States must do more to lessen its reliance on imported oil. President Reagan said during a nationally televised news conference that the rising U.S. reliance on foreign oil is a problem that the administration is studying. "We have to study this more," Reagan said. "This is why we increased the Strategic (Petroleum) Reserve, but we have to do more," he said. Reagan said his administration has already proposed deregulating natural gas and eliminating the windfall profits tax on crude oil production. However, he complained that Congress had not yet approved those measures. The Department of Energy earlier this week released a report that warned of rising U.S. reliance on foreign oil imports at a time when domestic production is declining. It suggested options for the administration to consider, but made no specific recommendations.  
TRICO <TRO> GETS CHINESE CONTRACT. Trico Industries Inc said it has received a six mln dlr contract to supply hydraulic lift equipment for heavy crude oil production for the Chinese Ministry of Petroleum Industry. The company said the equipment is for use in the Laiohe oilfield 350 miles northeast of Peking and will equip a 140-well program.  
CANADA NORTHWEST TO SELL PREFERRED SHARES. <Canada Northwest Energy Ltd> said it reached agreement in principle to sell one mln preferred shares by way of private placement to raise 32.5 mln dlrs for oil and gas exploration. The 5.4 pct cumulative redeemable convertible series D preferred shares will be flow-through shares entitling holders to tax deductions not claimed by the company. The shares will be convertible anytime after issue into common shares at an equivalent conversion price of 32.50 dlrs a share. After one year, they will be redeemable at any time by the company at 25 dlrs a share plus accrued dividends.  
GULF CANADA <GOC> ASSERTS NO DAMAGE FROM SPILL. Gulf Canada Corp said a discharge of material at its Amauligak drilling site in the Beaufort Sea caused no danger to the environment. Yesterday, the federal department of energy charged Gulf Canada with eight counts of illegal dumping for discharging powdered cement and drilling mud between September 23 and 30 last year. The charges carry a maximum 50,000 dlr fine on each count. Gulf said the government's charges relate to discharging materials without a permit, not to environmental damage resulting from the action. Gulf said it voluntarily informed appropriate government officials when the material was discharged. The company also said none of the material was discharged within 12 miles of the closest shoreline. It added that one of the materials cited, barite, is a naturally occurring mineral routinely discharged into the sea during drilling operations.  
BIDS AWARDED FOR ELK HILLS CRUDE OIL. The U.S. Department of Energy said it has awarded bids for about 90,000 barrels per day, bpd, of crude oil from the Elk Hills Naval Petroleum Reserve in California. The contract period runs from April one through July one, the DOE said. Successful bidders, the amount of crude oil and the price per bbl according to the DOE are as follows - Texaco Inc's <TX> Texaco Trading and Transport 15,000 bpd at 15.79 dlrs and 2,200 bpd at 15.19 dlrs, Beacon Oil Co 7,000 bpd at 15.66 dlrs and 2,500 bpd at 16.04 dlrs, Golden West Refining 8,110 bpd at 15.42 dlrs. Successful bidders, the amount of oil and price per bbl, according to the DOE continue as follows - Chevron's <CHV> Chevron USA Inc 3,000 bpd at 14.51 dlrs and 4,000 bpd at 14.61 dlrs, Chevron International Oil Co 2,600 bpd at 14.41 dlrs and 2,800 bpd at 14.51 dlrs, Newhall Refining Co 6,000 bpd at 15.82 dlrs, Caljet Inc 4,000 bpd at 15.32 dlrs, Casey Co 4,000 bpd at 15.45 dlrs. Also, Cryssen Refining Inc 4,000 bpd at 15.47 dlrs, Edgington Oil Co 4,000 bpd at 15.54 dlrs, Sound Refining Inc 3,100 bpd at 15.51 dlrs, Atlantic Richfield Co <ARC> 3,000 bpd at 15.75 dlrs. Successful bidders, the amount of crude oil and the price per bbl according to the DOE continue as follows - Orkin Inc 2,679 bpd at 15.24 dlrs, Lunday-Thagard Co 2,511 bpd at 15.27 dlrs, Golden Eagle Refining 2,500 bpd at 15.37 dlrs, MacMillan Ring-Free Oil Co 1,000 bpd at 15.81 dlrs, 1,000 bpd at 15.71 dlrs and 230 bpd at 16.02 dlrs, Mock Resources 2,000 bpd at 15.76 dlrs, Petro-Diamond 2,000 bpd at 15.46 dlrs.  
WORLD BANK LIKELY TO URGE CHANGES ON JAKARTA. World Bank President Barber Conable is expected to press Indonesia, the Third World's sixth largest debtor, to maintain the momentum of economic policy changes to tackle the slump in its oil revenues, western diplomats said. Conable, who flew to Indonesia yesterday from Tokyo, will meet with President Suharto and senior economic ministers. He said on arrival that the economy of South-East Asia's largest nation was being managed well, but the slump in world oil prices called for major policy adjustments. Today the World Bank chief will visit Bank-funded projects in the eastern section of Java, Indonesia's most populous island. He will see Suharto on Tuesday after a day of detailed discussions with ministers tomorrow. Indonesia, the only Asian member of OPEC, has been severely hit by last year's crash in oil prices, which cut its oil and gas revenues in half. Japan's state Export-Import Bank last month agreed to provide around 900 mln dlrs in untied credits to help Indonesia pay for its share of 21 World Bank development projects. Indonesia, a country of 168 mln people, has responded to the oil slump by cutting spending, devaluing its currency by 31 pct, and trying to boost exports, while using foreign loans to bridge its deficit. Diplomats said that Conable was expected to press Suharto and leading economic ministers to maintain the pace of policy change, particularly in dismantling Indonesia's high-cost protected economy. "Oil prices, the debt crisis, the world recession, all call for major policy adjustments and external support," Conable said in his arrival statement. But with Indonesia facing parliamentary elections next month, he is likely to avoid anything which would imply that the Bank is demanding specific changes. "We believe there has been wise leadership here and the economy is being very well managed," Conable told reporters at Jakarta airport. Indonesia has official and private overseas debts totalling 37 billion dlrs, according to the Bank, which makes it the Third World's sixth biggest debtor. It has received 10.7 billion dlrs from the World Bank since 1968. Conable did not spell out what further changes he would like to see. Last month the Bank endorsed economic changes already introduced by Indonesia, but implied it wanted more. Giving a 300 mln dlr loan in balance of payments support, the Bank said it will monitor progress on implementation of the government's trade reform measures, and supported its determination to promote efficiency and longer-term growth. Indonesia has introduced a series of measures since last May to boost non-oil exports, liberalise trade and encourage outside investment. Suharto has also ordered a government committee to look into which of Indonesia's 215 state-run companies could be sold. But in a report last month, the U.S. Embassy said the government appeared divided over how far to take its reforms. Western analysts say that in particular the government is unsure how far to go with dismantling Indonesia's high-cost monopolies, which control core areas of the economy. Central bank governor Arifin Siregar said this week that Indonesia faced very limited economic choices. It could not spend its way out of trouble because this would increase the balance of payments deficit and domestic inflation. He said the main objective was to raise exports outside the oil and natural gas sector. Indonesia's current account deficit is projected by the government to fall to 2.64 billion dlrs in the coming financial year which starts on April 1, from an estimated 4.1 billion in 1986/87.  
EXPLOSION AT BP OIL REFINERY IN SCOTLAND. An explosion followed by a fire ripped through a British Petroleum (BP) oil refinery, killing one man. A BP spokesman said the fire was confined to one plant at the 700-acre refinery at Grangemouth, 25 miles west of Edinburgh. The cause and extent of the damage had yet to be determined. Two people were killed in a previous explosion and fire at the plant on March 13. That incident is still being investigated, the spokesman said.  
AUSTRALIA SAID TO RELY TOO MUCH ON OIL TAXES. The government's over-reliance on revenue from crude oil is adversely affecting Australia's economic performance, Australian Petroleum Exploration Association (APEA) chairman Dennis Benbow said. Over one-third of Australia's indirect tax income is derived from oil at a time of falling domestic output and weak crude prices, he told the APEA annual conference here. This dependence on oil-generated revenue distorts the country's economic performance directly by acting as a disincentive to new exploration and indirectly by affecting trading competitiveness through high energy costs, he said. Australia's medium-term liquid fuel self-sufficiency position is posing a major economic threat, yet the government's response has been to load new tax burdens on the oil industry, Benbow said. Domestic oil output from existing fields is expected to fall to 280,000 barrels per day (bpd) in fiscal 1992/93 from 546,000 bpd in 1985/86, reflecting mainly the decline of the Bass Strait fields, he said. Bass Strait reserves are now two-thirds depleted, with the three largest fields 80 pct depleted, he said. By 1992/93, Bass Strait output is expected to be just over half the 1985/86 level, assuming a number of so far undeveloped fields are brought on stream and enhanced recovery from existing fields goes ahead, Benbow said. Government projections of output from as yet undiscovered fields range from 40,000 to 130,000 bpd, he said. Australian liquid fuel demand is forecast to rise to 680,000 bpd in 1992/93 from 565,000 in 1985/86, implying a crude oil gap of between 270,000 and 360,000 bpd in five years time, he said. At present world oil prices and the current value of the Australian dollar, annual oil imports in 1992/93 would cost between 3.2 billion and 3.6 billion dlrs, Benbow said. Despite intensive exploration in the early 1980's, the addition to reserves has been inadequate, he said. For example, the 409 mln barrels discovered in the five years 1980-84 represent about two years' consumption, he said. He called on the government to review its tax policies to restore incentive to exploration.  
EXXON OFFICIAL URGES PLANNING FOR NEXT OIL SURGE. World governments should prepare for an inevitable significant increase in the price of oil as non-Middle East supplies diminish, Exxon Corp <XON> director and senior vice-president Donald McIvor said. Policymakers must also face up to the reality that the bulk of world oil reserves lies in the Middle East, he said in a speech prepared for delivery to the Australian Petroleum Exploration Association (APEA) annual conference. It appears ever more likely that new discoveries elsewhere will not change this fact, he said. McIvor said 37 of the world's 30,000 oil fields contain about 35 pct of all oil ever discovered. Only 11 of these 37 super-giant fields lie outside the Middle East and only five of the 37 have been discovered in the last 20 years, three of them in the Middle East, he said. He also said that since 1970, the world has been consuming 20 to 25 billion barrels a year while making discoveries at the rate of only 10 to 15 billion barrels a year. More than half of remaining proved reserves are in the Middle East, he said. McIvor said it was important to continue to search for oil outside the Middle East because each addition contributes to a diversity of supply desirable for global political and economic stability. "It is important to enhance the likelihood of home-country discoveries with measures such as non-discriminatory and stable taxation, and minimum regulation, together with opening up of acreage for exploration," he said. Increasing reliance on the Middle East will also boost the incentive to use natural gas and synthetic sources of petroleum, he added.  
AUSTRALIAN OIL TAX CUT SEEN BOOSTING OUTPUT. A 10 percentage point reduction in the Australian government's maximum crude oil levy on old oil would stabilize Bass Straits oil output, resources analyst Ian Story said here. A reduction to 70 pct from 80 pct would enable Bass Strait output to be maintained at the current rate of 420,000 barrels per day (BPD) for the next year rather than falling to 380,000 BPD in 1987/88, he told the Australian Petroleum Exploration Association annual conference. Story is an analyst with and a director of Sydney stockbroker Meares and Philips Ltd. Windfall profits taxes on Bass Strait crude are no longer appropriate in the current economic climate, Story said. The maximum 80 pct levy on old oil -- that discovered before September 1975 -- is now forcing the Broken Hill Pty Co Ltd <BRKN.S>/Exxon Corp <XON> partnership to shut-in production, accelerating the decline in output and reducing government revenue, he said. He said the producer return per barrel at a price of 30 Australian dlrs a barrel would rise to 2.07 dlrs from 0.80 dlrs if the levy was cut to 70 pct. "The economics at an 80 pct levy are simply not attractive at oil prices below 30 dlrs," Story said. Cutting the maximum levy rate to 70 pct would create higher levels of self-sufficiency, increase government revenue, boost exports and provide incentives for exploration and development, he said. The government is currently reviewing the oil tax structure.  
BP GRANGEMOUTH REFINERY SHUT, HYDROCRACKER DAMAGED. The entire British Petroleum Co PLC refinery at Grangemouth in Scotland has been shut down following the explosion and fire that severely damaged the hydrocracker at the site, a refinery spokesman said. He said the rest of the 178,500 bpd refinery, including the 19,000 bpd catalytic cracker, was undamaged. The whole refinery was closed pending enquiries but a decision when to reopen the main units will be taken in the next couple of days, he said. But there was extensive damage to the central part of the 32,000 bpd hydrocracker, which upgrades heavy oil products to gasoline, and it will be out of operation for some months. The spokesman said BP will not suffer supply shortages as a result of the explosion as it will be able to bring in product from other sources. BP has a 437,000 bpd refinery in Rotterdam, a 181,900 bpd unit at Ingolstadt, West Germany, a 181,900 bpd plant at Lavera in France and a smaller Swedish plant. He said the explosion and fire, in which one worker was killed, occurred when the hydrocracker was not in operation. The refinery as a whole had been operating at about half of its capacity since the end of January while an extensive overhaul was carried out on the North Side of the complex where the hydrocracker is sited, he said. This work was scheduled to be completed by mid-April, but this is now being assessed following the hydrocracker accident. Two people were killed in an explosion and fire in a flare line at the Grangemouth refinery on March 13, but the spokesman said this incident was some 100 yards from the latest accident.  
IRAQ REPORTS RAIDS IRAN'S NOWRUZ OIL FIELD. Iraq said its warplanes launched two bombing raids on Iran's offshore Nowruz oilfield in the northern Gulf today. A military spokesman, quoted by the official Iraqi news agency, said platforms at the field were reduced "to rubble." He said attacks on the field, 55 miles northwest of Iran's Kharg Island oil terminal, were carried out at 0600 GMT. He said today's raids "fall within Iraq's policy to deprive Iranian rulers of oil revenue used to serve their aggressive aims." Iraqi planes yesterday raided the nearby Ardeshir oil field, resuming attacks on Iranian targets after a month-long lull.  
STUDY SAYS OIL PRICE FALL SPURS BANKRUPTCIES. The sharp drop in world oil prices the past year triggered a 60 pct increase in bankruptcies in the country's oil states, according to a study released by the American Petroleum Institute (API). API said the Dunn and Bradstreet study found that business failures rose nationally by 6.9 pct in 1986 over 1985, but in the "oil patch" of the Southwest the increase was 59.9 pct. It said bankruptcies in Texas were up 57.4 pct, Oklahoma, 55.9 pct, Colorado, 55.8 pct and Louisiana, 46.6 pct. In Alaska, failures rose by 66.2 per cent, it said. API also said that three of the states with the highest number of bank failures last year were large oil and gas producers - Texas, Oklahoma and Kansas.  
IRAQ OIL MINISTER QASSEM AHMED TAQI REPLACED, IRAQI NEWS AGENCY REPORTS.  IRAQ OIL MINISTER QASSEM AHMED TAQI REPLACED, IRAQI NEWS AGENCY REPORTS  
IRAQI OIL MINISTER REPLACED - OFFICIAL. Iraq's Oil Minister Qassem Ahmed Taqi has been moved to the Heavy Industries ministry, the official Iraqi news agcny INA said tonight. It quoted a Presidential decree appointing Oil Ministry undersecretary Isam Abdul-Rahim Al-Chalaby as the new Oil Minister. The Ministers of Industry and Communication and Transport had both been relieved of their posts, the news agency said. No immediate explanation was given for the changes. Al-Chalaby is the head of the Iraqi National Oil Company. INA said the decree, signed by President Saddam Hussein, relieved the Minister of Heavy Industries, Subhi Yassin Khadeir of his post and appointed him a Presidential adviser. His ministry was formerly known as the Industry and Mineral Resources Ministry. The Minister of Communications and Transport, Abdel-Jabbar Abdel-Rahim al-Asadi was also relieved of his post and replaced by a member of the ruling Baath party regional command, Mohammed Hamza al-Zubeidi. Al-Zubedei is also a Presidential adviser. All three ministers involved in the reshuffle had spent more than four years in their posts.  
ENERGY ANALYST PROPOSES U.S. OIL TARIFF. Energy analyst Edward Krapels said the United States should consider an oil tariff to keep U.S. dependence on imports below 50 pct. "On the supply side, the argument in favor of a contingent, variable import tariff is most persuasive," Krapels, president of Energy Security Analysis, Inc said in a statement at a House Energy and Power subcommittee hearing. "An optimal tariff would be one implemented only if the international price of crude oil falls below, say, 15 dlrs a barrel. On the demand side, the obvious policy is an excise tax on transportation fuels," Krapels said. But William Johnson of the Jofree Corp disagreed with the oil tariff proposal, saying Congress should remove price controls on natural gas, repeal the windfall profits tax on oil companies, allow exports of Alaskan oil and provide tax incentives for U.S. oil production, or, at the least, preserve exisiting tax incentives for drilling. He also urging filling the Strategic Petroleum Reserve at a faster rate. Richard Adkerson of Arthur Andersen and Co told the subcommittee oil imports were expected to increase because funds for exploration and development of domestic oil sources cannot now be economically justified due to low oil prices.  
IRAQ REPLACES OIL MINISTER IN BIG GOVT SHUFFLE. Iraqi President Saddam Hussein carried out his first major government shakeup in five years tonight, naming a new oil minister in shuffling three posts. One minister was dropped in the shuffle, announced in a presidential decree. It gave no reason for the changes in the government of the Arab Baath Socialist Party which has ruled Iraq since a revolution in 1968. The decree named the head of the Iraqi National Oil Company (INOC), Isam Abdul-Rahim al-Chalaby, to take over as oil minister replacing Qassem Ahmed Taqi. Taqi, appointed oil minister in the last significant government reorganization in 1982, was moved to be minister of heavy industries.  
HUGHES' U.S. RIG COUNT RISES TO 784. U.S. drilling activity rose last week with the number of working rotary rigs up by 23 to 784, against 1,063 working rigs one year ago, Hughes Tool Co. said. The improvement was the first increase this year in the weekly rig count, which had dropped steadily since early January when a total of 962 rotary rigs were working. Among individual states, Texas and Oklahoma reported the biggest gains in drilling last week with increases of 21 and 11, respectively. California and Louisiana were each up by three and Wyoming gained two additional working rigs. Hughes Tool said it counted a total of 692 rigs drilling on land, 74 rigs active offshore and 18 drilling in inland waters. In Canada, the rig count was up by two to 183, against 324 one year ago.  
AUSTRALIAN MINISTER SEES TARGETED OIL TAX STRATEGY. Australia's crude oil tax strategy is probably best tackled in terms of a targeted rather than broadly-based approach, Federal Resources and Energy Minister Gareth Evans told a meeting here. He told the Australian Petroleum Exploration Association (APEA) annual conference there was a prospect of developing a package that would recognise the government's economic priorities while also meeting some of the industry's concerns. Evans was referring to a nearly completed government review of oil taxation. Evans said there were plenty of examples where targeted approaches to oil industry taxation had produced good results in recent years. These include the reduction in the top marginal crude excise rate on 'old' Bass Strait oil found before September 1975 to 80 pct from 87 pct, and the waiver of excise on onshore oil announced last September, he said. The industry, through the APEA, has been calling for the elimination of secondary taxation on oil in order to boost incentives for prospecting against a background of weak prices and Australia's relatively low exploration levels. "While nobody wants to add further unnecessary complexity to an already complex taxation regime, I am inclined to favour these kinds of tailored approaches ahead of sweeping changes, which leave (government) revenue much reduced and may still leave a lot of uncertainty as to what individual companies are going to do in major areas," Evans said. He said the government did not intend to change its resource rent taxation (RRT) legislation, now before parliament, in response to industry calls to allow all exploration expenditure in a given area to be deductible. As previously reported, RRT is a tax of 40 pct limited to highly prospective offshore areas, based on profits after a certain rate of return has been achieved for individual projects. APEA has said it is not a true profit-based tax because exploration deductibility is limited to successful projects. Evans said the decision not to change RRT was based more than anything on the government's desire to ensure the certainty and stability of the new regime, adding that major investments have already been planned on the existing ground rules.  
WORLD BANK CHIEF PLEDGES SUPPORT TO INDONESIA. World Bank president Barber Conable pledged the Bank's support to help Indonesia adjust to lower world oil prices, but said further deregulation of its protected economy was needed. Speaking to reporters after talks with President Suharto, he said he expected Jakarta to do more to liberalise the economy and deregulate trade policy. Indonesia, hurt by the fall in oil prices last year which cut the value of its crude exports in half, is the Third World's sixth largest debtor. It has received 10.7 billion dlrs from the World Bank in the past 20 years. Conable said the World Bank, which granted Indonesia a 300 mln dlr loan last month to help its balance of payments, was prepared to back Jakarta in taking the right steps to adjust to lower oil and primary commodity prices. "We are prepared to support those steps which we believe are consistent with the development of the Indonesian economy," he said. He said Jakarta's willingness to move quickly after last year's collapse in oil price saved Indonesia from some of the difficulties now faced by other countries. Indonesia devalued its currency by 31 pct against the dollar in September to avoid a balance of payments crisis, and has announced a series of measures since May intended to stimulate exports, encourage foreign investment and revitalise the economy. However, key monopolies in areas like steel and plastics and high tariff barriers remain in place. Conable arrived in Indonesia on Saturday and has since met 14 Indonesian cabinet ministers to review the country's borrowing needs and the impact of falling oil prices on the country.  
KUWAIT SAYS OPEC 2.4 MLN BPD BELOW CEILING. Kuwaiti oil minister Sheikh Ali al-Khalifa al-Sabah said OPEC was producing well below its oil output ceiling and this would help prices move higher, according to a Kuwaiti newspaper interview. The al-Rai al-Aam newspaper quoted him as saying OPEC was pumping 2.4 mln barrels per day (bpd) less than its 15.8 mln bpd ceiling, while consumers were drawing down their petroleum stocks at a rate of 4.5 mln bpd. As long as OPEC maintains its output curbs, demand for its oil will rise in April and May, Sheikh Ali said, adding that Kuwait was strongly committed to its OPEC quota.  
AUSTRALIAN OIL INDUSTRY TO CONTINUE TAX CAMPAIGN. The council of the Australian Petroleum Exploration Association (APEA) said it will press on with its campaign for major improvements to Australia's petroleum taxation structure. The council said in a statement the industry was bitterly disappointed by the Australian government's position on taxation, as presented in a speech by Resources and Energy Minister Gareth Evans to the APEA conference. As earlier reported, Evans said he was inclined to target any tax changes rather than take a broad-based approach to secondary taxation of petroleum. APEA had expected the government to make positive responses to detailed industry submissions seeking the removal of existing secondary tax disincentives to exploration and development, the council said. It said it plans to reply in detail to issues raised by Evans, but its immediate concern was the decision to proceed with the current resource rental tax (RRT) legislation. Evans told the conference the government did not plan to accept industry pleas for changes in the legislation to allow deductibility of unsuccessful exploration expenditure. "The government's unwillingness to allow the deduction of unsuccessful exploration expenditure within the whole offshore area in which RRT applies negates any claim that the tax is profit based," the APEA council said. The government missed a major opportunity to persuade oil exploration companies that it had realistic answers to the industry's concerns, despite its recognition of the industry's problems, the council said. The industry has called for the end of all discriminatory secondary taxation of petroleum, citing them as major disincentives at a time of low oil prices.  
KUWAIT SAYS OPEC 2.4 MLN BPD BELOW CEILING. Kuwaiti oil minister Sheikh Ali al-Khalifa al-Sabah said OPEC was producing well below its oil output ceiling and this would help prices move higher, according to a Kuwaiti newspaper interview. The al-Rai al-Aam newspaper quoted him as saying OPEC was pumping 2.4 mln barrels per day (bpd) less than its 15.8 mln bpd ceiling, while consumers were drawing down their petroleum stocks at a rate of 4.5 mln bpd. As long as OPEC maintains its output curbs, demand for its oil will rise in April and May, Sheikh Ali said, adding that Kuwait was strongly committed to its OPEC quota.  
SHELL TO DECLARE NORWAY'S DRAUGEN FIELD COMMERCIAL. <A/S Norske Shell>, Royal Dutch/Shell Group's <RD.AS> Norwegian subsidiary, said it has nearly concluded a 10 billion crown development scheme for Norway's Draugen oil field and will declare the field commercial in the near future. Pending government approval of the scheme, the field could come on stream in 1992, making it Norway's northermost field development and the first such project on the Haltenbanken tract off central Norway. Work on the project could begin as early as January 1988, a Shell spokesman said. Shell has not released projected output levels for the field, where water depth is 240-270 meters. The spokesman said the field's partners have agreed to develop Draugen with a 300-meter, single-leg concrete gravity-base platform. The scheme also proposes using remote subsea production wells to tap the field's reservoir, estimated to contain 375 mln barrels of oil, and an offshore buoy-loading system to transport oil from the field by ship. Partners on Draugen are Shell, the operator, with a 30 pct stake, British Petroleum Co Plc <BP.L> unit <BP Petroleum Development (Norway) Ltd> (20 pct) and state-owned Den Norske Stats Oljeselskap A/S <STAT.OL> (Statoil) (50 pct).  
U.S. ENERGY SECRETARY OPTIMISTIC ON INCENTIVES. U.S. Department of Energy Secretary John Herrington said he was "optimistic" about the chances of providing a more generous depletion allowance for oil and gas producers, but added that the plan faces strong opposition from some members of the Reagan administration. Herrington, speaking to Houston oil executives at a breakfast meeting, said administration debate over his plan for a 27.5 pct annual depletion allowance was "heavy and strong" largely because of some fears that the U.S. oil industry could eventually become as dependent on federal subsidies as the agriculture industry. Herrington's proposed tax incentives for the oil industry were issued last week after the Department of Energy released a comprehensive report finding U.S. national security could be jeopardized by rising oil imports. In response to a question from Mitchell Energy and Development Corp <MND> chairman, George Mitchell, Herrington said the report did not definitively rule out an oil import tarrif. "We intend to keep that debate open," Herrington said. However, following his speech, Herrington told Reuters that the new report shows an oil import fee "is not economical." Herrington said, for example, a 10 dlr per barrel tariff on oil imports would cause the nation's gross national product to drop by as much as 32 billion dlrs. Herrington also said he believed President Reagan, who requested the comprehensive national security study, was committed to some action to help the ailing U.S. oil industry. "I'm quite confident he understands the problems and is prepared to do something about it," Herrington said.  
OIL TAX BREAK RIDICULED BY U.S. HOUSE TAXWRITER. A House taxwriter said Energy Secretary James Herrington's "outrageous" plan to restore an old tax break for oil companies was both bad tax and energy policy. Rep. Pete Stark, a California Democrat and senior House Ways and Means Committee member, said Herrington's plan for a 27.5 pct depletion allowance--which in effect is a special 27.5 pct tax deduction --would cost seven billion dlrs a year. "He must have missed the last two years of federal tax reform by sleeping as soundly as Rip Van Winkle," Stark said. He said in a statement the oil industry already pays an effective lower rate of U.S. tax on investment, 15 pct versus aggregate corporate tax on all investment of 34 pct, according to a recent Congressional Research Service study.  
GOODYEAR <GT> UNIT TO START UP PIPELINE. Goodyear Tire and Rubber Co said the All American Pipeline of its Celeron Corp subsidiary will start line fill activities on March 30 as it begins operating. The company said about five mln barrels of oil will be required to pack the completed segment of the line, which runs 1,225 miles from near Santa Barbara, Calif., to existing pipeline connections in West Texas.  Construction has also staqrted this week on a 43-mile, 16-inch diameter gathering line to deliver 75,000 to 100,000 barrels a day of oil from the San Joaquin Valley in California.  The 30-inch main underground line can transport over 300,000 barrels daily.  
CALTEX TO RAISE BAHRAIN OIL PRODUCT PRICES. Caltex Petroleum Corp said it will raise posted prices for naphtha and several grades of residual fuel in Bahrain, effective March 25. Caltex, a joint venture of Chevron Corp <CHV> and Texaco INC <TX>, said its naphtha posting is up four cts a gallon to 43 cts. It said it is raising its marine diesel oil posting by 30 cts a barrel to 20.24 dlrs a barrel. Light, medium, and heavy fuel oil postings are up 1.50 dlrs a barrel, the company said. This will bring the light fuel oil price to 16.90 dlrs, medium to 15.50 dlrs, and heavy to 14.60 dlrs, the company said.  
VENEZUELA TO ANNOUCE PARTNER FOR COAL VENTURE. Petroleos de Venezuela S.A will announce within two weeks the name of a foreign consortium it has chosen to help exploit the coal deposits at Guasare in western Zulia state, PDVSA president Juan Chacin Guzman said. Chacin told reporters the foreign partner will provide capital as well as technical and marketing expertise to the Carbozulia project, which the state oil company will manage. PDVSA officials said that among those who bid for the partnership is a consortium between Agip Carbone, a subsidiary of Italy's Ente Nazionale Idrocarburi (ENI), and Atlantic Richfield <ARC> of the United States. Minister of Energy and Mines Arturo Hernandez Grisanti said discussions are currently taking place to finalize the terms of the contract with the foreign partner. PDVSA vice-president Pablo Reimpell said last week the first shipment of coal from the Carbozulia project should be made during the final quarter of 1987, and would measure between 100-150,000 metric tons. Plans call for production to eventually reach 500,000 mt annually. Reimpell said the original investment in the project will be approximately 8 billion bolivars.  
MADAGASCAR EXTENDS AMOCO OIL EXPLORATION AGREEMENT. Madagascar extended its oil exploration agreement with the U.S. Firm Amoco Corp <AN> for 17 months to allow for further studies of the Morondava basin on the southwest coast, a government statement said. It said the existing five-year agreement, due to expire this July 24, was extended until the end of 1988 to allow for additional geological and geophysical studies. Amoco has so far laid 7,100 km of seismic lines and sunk five exploration wells in the Morondava basin. It may drill a further three wells before the end of the extended exploration period, the statement said. Madagascar has signed oil exploration agreements with four foreign oil companies since 1981. But despite promising indications of large reserves, no commercial production plans have yet been announced. The foreign firms - Amoco, Occidental Petroleum Corp <OXY>, Mobil Corp <MOB> and a unit of <Ente Nazionale Idrocarburi> - are working in partnership with the National Military Office for Strategic Industries (OMNIS). Roland Ratsimandresy, the director general of OMNIS, said at a ceremenony to sign the extension of the Amoco agreement that his department would intensify oil exploration with its existing partners and would soon offer a new round of exploration licences.  
ABU DHABI TO REOPEN GULF OILFIELD HIT IN 1986 RAID. Abu Dhabi's offshore Abu al-Bukhoosh oilfield in the Gulf, shut since an aerial attack last November, will reopen when new anti-aircraft defences are ready, and this could be in the next two months, oil industry sources said. They said the Abu Dhabi government and Compagnie Francaise des Petroles (Total) <TPN.PA>, whose Total Abu al-Bukhoosh subsidiary owns 51 pct of the field, have agreed on the reopening, but that a date has not been definitely fixed. Unidentified planes hit the field, 100 miles off Abu Dhabi, last November 25. The raid killed eight workers and destroyed the main living quarters and a bridge linking a wellhead to the main production platform. Western diplomats in the region say Iran was responsible but Tehran has blamed its Gulf War enemy Iraq. Abu al-Bukhoosh was producing 57,000 barrels per day (bpd) at the time of the attack, but the sources said it would resume at a maximum of half that level because of reduced staff and the fact only four of five wellheads were now operable. The sources said only 80 personnel can be housed in remaining accomodations, the sources said. Facilities being installed to protect the field include aircraft detection equipment, anti-aircraft missiles, housing for military personnel and helicopter landing pads, the sources said. Abu Dhabi is the largest oil producer in the United Arab Emirates, accounting for about 800,000 bpd of its total 1.15 mln bpd production, the sources said. They also said Iran was working to reopen its Sassan field, part of the same reservoir as Abu al-Bukhoosh and located only a few miles away. Sassan was heavily damaged by an Iraqi air raid only 10 days before Abu al-Bukhoosh was attacked.  
OIL ANALYST SEES PAPUA NEW GUINEA AS GOOD PROSPECT. Papua New Guinea (PNG) provides the most exciting new prospect in the Asia-Pacific region for oil production, energy analyst Fereidun Fesharaki said here. The recent successful find at Iagifu is likely to put PNG on the list of major oil exporters by the early 1990s, he told the Australian Petroleum Exploration Association annual conference. Fesharaki, leader of the Energy Program at the East-West Center in Honolulu, Hawaii, was speaking on the Asia-Pacific petroleum outlook. With domestic demand of around 12,000 barrels per day (bpd) and prospects of production of over 100,000 bpd by late 1991, PNG would become an Ecuador-level crude exporter, Fesharaki said. The Iagifu wells in the Papuan Basin have recorded the best oil flows in more than 60 years of exploration in PNG. The PNG government's Geological Survey in a paper distributed at the conference estimates Iagifu reserves at about 500 mln barrels. PNG enjoys the most liberal tax regime in the region with no secondary taxes, Fesharaki said. "We expect a much larger oil search in Papua New Guinea, and discovery of much larger volumes of oil, similar in quality to (light) Bass Strait crude," Fesharaki said. There are also large pockets of high quality condensates to be produced, notably in the Juha field near Iagifu which is capable of producing 30,000 to 40,000 bpd, he said. But prices should be somewhat higher than the present levels to justify development of the Juha field, he said. The PNG Geological Survey paper noted there are five large prospective but little-explored sedimentary basins in PNG.  
NORWAY OFFERS 11TH LICENCE ROUND OFFSHORE BLOCKS. Norway has offered 10 new offshore blocks to foreign and domestic applicants in the first phase of the country's eleventh concession round, government officials said. Company shares in each of the licences proposed by the Oil and Energy Ministry are not final. The ministry has given the companies 10 days to accept or decline the proposed shares. French companies Ste Nationale Elf Aquitaine <ELFP.PA> and Total Cie Francaise des Petroles <TPN.PA>, which were expected to receive operatorships following France's agreement last autumn to purchase gas from Norway's Troll field, were not offered operatorships in this round, industry sources said. Three eleventh round blocks were awarded in the Haltenbanken exploration tract off central Norway, including the Smoerbukk West field where Den Norske Stats Oljeselskap A/S <STAT.OL> (Statoil) was appointed operator. Statoil will share the licence with subsidiaries of U.S. Oil companies Tenneco Inc <TGT.N> and Texas Eastern Corp <TET.N> and the Italian oil company <Agip SpA>'s Norwegian subsidiary. E.I. Du Pont de Nemours <DD.N> subsidiary Conoco Norway Inc was named operator on Haltenbanken block 6406/8 and will share the licence with Statoil. Norsk Hydro A/S <NHY.OL> will operate nearby block 6407/10 with partners Statoil, Norsk Agip A/S, Royal Dutch/Shell Group's <RD.AS> A/S Norske Shell and <Deminex> unit Deminex (Norge) A/S. Statoil has been offered the operatorship on a new block in the relatively unexplored Moere South exploration area south of Haltenbanken, with A/S Norske Shell, Texas Eastern and <Petroleo Brasileiro SA> (Petrobras) also offered stakes in the block. Norwegian companies landed operatorships on all six blocks opened in the Barents Sea area off northern Norway. The blocks were awarded in three licenses, each covering two blocks. Statoil will head exploration on blocks 7224/7 and 7224/8, sharing the licence with Exxon Corp's <XON.N> Norwegian subsidiary Esso Norge A/S, The British Petroleum Co PLC's <BP.L> BP Petroleum Development (Norway) Ltd, Shell, Norsk Hydro and Saga Petroleum A/S <SAGP.OL>. Blocks 7219/9 and 7220/7 were awarded to Norsk Hydro, the operator, Statoil, Mobil Corp's <MOB.N> Mobil Exploration Norway, Petrofina SA's <PETB.BR> Norske Fina A/S and BP. The third Barents Sea licence, covering blocks 7124/3 and 7125/1, went to Saga Petroleum A/S, the operator, Statoil, Atlantic Richfield Co's <ARC.N> Arco Norge A/S, Total Marine Norge A/S and Amerada Hess Corp <AHC.N>. The oil ministry withheld awards on four strategic blocks included in the eleventh round's second phase. The ministry is accepting applications for phase two blocks until early April and the awards will likely be announced this summer, officials said.  
THATCHER DEFENDS UK OIL POLICY IN SAUDI INTERVIEW. British Prime Minister Margaret Thatcher denied in an interview published in Saudi Arabia today that her government's oil policy contributed to weakness in world oil prices. She said the government was determined not to intervene to influence production decisions by oil companies operating in the North Sea. "We believe these must be a matter for the commercial judgment of the oil companies," she told the Arabic language daily al-Sharq al-Awsat in an interview coinciding with a visit to London by King Fahd of Saudi Arabia. Thatcher said this policy had not contributed to the fall in oil prices as North Sea production was now about the same as in 1984 when prices were close to 30 dlrs a barrel. British production was on a plateau and was unlikely to increase in the future, she said. "We naturally share the concern of Saudi Arabia and other OPEC members about the harmful effects of oil market volatility for both producer and consumer countries," Thatcher said. "On our part, we are careful to avoid any actions which might add to such volatility."  
CANADA SETS OIL INDUSTRY AID PACKAGE. Canada's federal government will provide a 350 mln dlr oil industry aid package that includes cash incentives designed to cover one-third of a company's oil and gas exploration and development costs, Energy Minister Marcel Masse announced. The aid program will inject about 350 mln dlrs a year into the oil and gas industry and could lead to more than one billion dlrs in new investment, Masse told a news conference. The program will affect drilling done anywhere in Canada on or after April 1, 1987. Masse told reporters that the government's oil industry aid package is aimed at small and medium sized companies. The aid package, called the Canadian Exploration and Development Incentive Program, will restrict the total payments that any individual company can claim to 10 mln dlrs a year. Masse said the program will probably generate new employment equivalent to 20,000 people working for a year. He said oil industry aid is needed because exploration and development spending dropped by at least 50 pct since world oil prices fell during the first half of 1986. Energy Minister Masse said the federal government decided to provide cash incentives so a large number of non-tax paying companies, mainly small Canadian firms, will receive the full value of the incentive. Such companies would not immediately benefit from tax benefits, he said. The federal government also wanted to deliver an aid program outside the tax system. Finance Minister Michael Wilson is now reviewing Canada's tax system and plans to announce tax reform proposals later this spring. An important feature of the aid program is a decision to let companies issue flow-through shares, allowing investors to benefit from the subsidy rather than restricting benefits to only participating companies, he said. Allowing flow-through shares under the program will make it easier for companies to attract investors in exploration and development, Masse said. He told reporters his department is still considering whether to allow partnerships and other entities to qualify for the subsidy.  
ECUADOR NEGOTIATES WITH NIGERIA FOR LENDING OIL. Earthquake-stricken Ecuador is negotiating with Nigeria to have the African country lend it 10,000 barrels per day (bpd) of crude for export, Deputy Energy Minister Fernando Santos Alvite told Reuters. He said Ecuador was negotiating a shipments schedule and the terms of repaying the loan. Ecuador has suspended crude exports for about five months until it repairs a pipeline ruputured by a March five tremor. Santos Alvite added Ecuador is finalizing details for a program under which Venezuela would temporarily lend the country 50,000 bpd for export.  
LATIN OIL PRODUCERS TO MEET IN CARACAS. Five regional oil producing nations will gather in Caracas tommorrow for a two-day meeting expected to center on ways to combat proposals for a U.S. tax on imported petroleum, the Venezuela's ministry of energy and mines said. Oil ministers from Mexico, Trinidad and Tobago, Ecuador and Venezuela will be on hand for the fifth meeting of the informal group of Latin American and Caribbean Petroleum Exporters, formed in 1983, it said. Colombia will also attend for the first time, as an observer nation, the ministry said. Energy and Mines Minister Arturo Hernandez Grisanti said the conference has no set agenda but one entire session Friday will be devoted to proposals for a tax on imported oil. Two of the group's members, Venezuela and Mexico, are second and third largest foreign suppliers of oil to the United States, respectively, following Canada. Venezuela, concerned about the effect such a tax would have on its exports, undertook a diplomatic push to coordinate strategy against such measures. In February, Canadian Energy Minister Marcel Masse was invited to Caracas for talks with Hernandez on proposals for an oil import tax.  
BP<BP> OFFER RAISES EXPECTATIONS FOR OIL VALUES. British Petroleum Plc's plan to pay 7.4 billion dlrs for less than half of Standard Oil Co has signalled higher values in the U.S. oil patch, analysts said. "I think that BP's bid is a very strong affirmation and clear signal that they have confidence in the U.S., and they think the barrel of oil in the ground is going to go higher," said Sanford Margoshes of Shearson Lehman Brothers Inc. BP earlier today said its U.S. unit planned to tender at 70 dlrs per share for the 45 pct of Standard it does not already own. "It's a 7.4 billion dlr price that (shows) OPEC has won the war and oil prices are not going to crack," said Prescott, Ball and Turben analyst Bruce Lazier. "Behind that is a huge implication for the rest of the energy issues out there in the stock market, particularly those that are acquisition targets," Lazier said. One of those mentioned by Lazier was USX Corp, an energy-steel concern which had been courted by investor Carl Icahn and drew the attention of Australian Robert Holmes a Court last year. Rumors continue to swirl around its stock. Margoshes said he does not foresee major U.S. oil firms falling into takeover situations for several years, with the exception of possibly Amerada Hess Corp <AHC>. He said most of the majors found partners in the last round of matchmaking which ended two years ago, and others restructured to the point that they have become unattractive. U.S. oil stocks rallied in response to the offer. Exxon Corp <XON> rose 1-1/8 to 88-1/2. Chevron Corp <CHV> jumped 1-1/8 to 58-7/8, and Texaco <TX> climbed 1/4 to 37-3/4. Unocal Corp <UCL> rose 1-3/4, while Occidental Petroleum Corp <OXY> climbed 1-1/8 to 34-3/4. Amoco Corp <AN> rose 1-3/8 to 83-3/4. Standard Oil's stock was up 6-1/4 in heavy trading to 71-1/8. Earlier in the session it had been at a high of 72-1/4. Wall Street has speculated British Petroleum may boost its offer by several dlrs per share, but the company maintained it would not raise the 70 dlr bid. British Petroleum stock rose 2-1/4 to 59-5/8. Analysts said the fact British Petroleum made such a bid in the first place indicates that the British oil giant has changed its outlook for the oil industry. Analysts said last year British Petroleum held one of the more bearish positions on oil prices. "They said the real price of oil would stay at 15 dlrs (a barrel) for several years, and I think they beat a hasty retreat from that point of view," Margoshes said. "They are more appropriately today looking more optimistically. I believe they are looking at 18 dlrs (long-term)...also in their heart of hearts they believe that will be exceeded," Margoshes said. The U.S. benchmark crude West Texas Intermediate was trading today around 18.60 dlrs per barrel. Analysts said British Petroleum might have been able to buy up the rest of Standard Oil for about 50 dlrs per share when oil prices were falling last year. They said Standard Oil's brightest asset is its slightly more than 50 pct ownership of the Alaskan Prudhoe Bay oil field. Analysts also said the company has other interests in the Alaskan North Slope. Analysts said the Standard investment is extremely attractive to BP because the U.S. is the largest oil market and has hard-to-replace reserves. "I think it just fits in with their long-range plans to increase their position in the U.S. market," Dean Witter analyst Eugene Nowak said. Analysts said it also raises BP's visibility ahead of the British government's announced disposal of 31.7 pct of BP stock. The U.K. government said it would dispose of the holding sometime in the year beginning April one. After acquiring all of Standard, most of BP's reserves would be in the U.S., but only about six pct of its stock is held in the U.S. "The only way they can sell all that stock is to move it into the United States. No other market can handle all that stock," said L.F. rothschild analyst Rosario Ilacqua. In 1986, Standard Oil had net losses of 345 mln dlrs on revenues of 10.02 billion dlrs, compared to a profit the year earlier of 308 mln dlrs on revenues of 13.82 billion dlrs.  
NEXT FEW MONTHS CRUCIAL FOR OIL - HERNANDEZ. Energy and Mines Minister Arturo Hernandez Grisanti today told a meeting of regional oil exporters the next few months will be critical to efforts to achieve price recovery and stabilize the market. Hernandez said while OPEC and non-OPEC nations have already made some strides in their efforts to strengthen the market, the danger of a reversal is always present. "March and the next two or three months will be a really critical period," Hernandez said. He said, "We will be able to define a movement, either towards market stability and price recovery or, depending on the market, a reversal." Earlier this week, Hernandez said Venezuela's oil price has averaged just above 16 dlrs a barrel for the year to date. If OPEC achieves its stated goal of an 18 dlrs a barrel average price, he said, Venezuela's should move up to 16.50 dlrs. Hernandez spoke today at the opening of the fifth ministerial meeting of the informal group of Latin American and Caribbean oil exporters, formed in 1983. Ministers from member states Ecuador, Mexico, Trinidad-Tobago and Venezuela are attending the two day conference, while Colombia is present for the first time as an observer. Hernandez defined the meeting as an informal exchange of ideas about the oil market. However, the members will also discuss ways to combat proposals for a tax on imported oil currently before the U.S. Congress. Following the opening session, the group of ministers met with President Jaime Lusinchi at Miraflores, the presidential palace. The delegations to the conference are headed by Hernandez of Venezuela, Energy Minister Javier Espinosa of Ecuador, Energy Minister Kelvin Ramnath of Trinidad-Tobago, Jose Luis Alcudiai, assistant energy secretary of Mexico and Energy Minister Guilermno Perry Rubio of Colombia.  
BRAZIL OIL OUTPUT FELL IN FEBRUARY, USAGE UP. Brazilian crude oil and liquefied natural gas production fell to an average 583,747 barrels per day in February from 596,740 in the same 1986 month, the state oil company Petrobras said. The drop was due to operating problems in the Campos Basin, the country's main producing area, where output was down to 346,011 bpd from 357,420, a Petrobras statement said. Consumption of oil derivatives totalled 1.14 mln bpd in February, 16.7 pct up on February last year but down from the record 1.22 mln bpd used in October last year. Use of alcohol fuel in February was 208,600 bpd, 42 pct above February, 1986.  
BANK SEES MODEST RECOVERY IN GULF ARAB ECONOMIES. The Emirates Industrial Bank has predicted a modest economic recovery in the Gulf Arab states following higher oil revenues. A bank study, carried by the Emirates news agency WAM, said total oil revenues of the six Gulf Cooperation Council (GCC) countries were likely to reach 39 billion dlrs this year from 33.5 billion in 1986. The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). The bank said the improvement would result from higher oil prices made possible by last December's OPEC accord to restrain overall group production. These curbs have pushed up oil prices from around eight dollars a barrel in mid-1986 to around 18 dlrs. "All signs point to the possibility of a modest recovery in the economies of these (GCC) countries, although this expected growth will not be similar to that of the (1970s) boom years," the study said. It added, however, that GCC states would experience higher budget deficits this year because of needs arising from past recession and the difficulty of making fresh spending cuts. The study said the combined GCC bugdet deficits would rise to 23.2 billion dlrs from 17.9 billion last year. It said lower oil exports cut the GCC states' combined trade surplus to 18 billion dlrs in 1986 from 21.5 billion in 1985. The UAE suffered a 19.5 pct drop in gross domestic product to 77.6 billion dirhams last year from 96.4 billion in 1985, it added.  
29-MAR-1987. 29-MAR-1987 
INDONESIA LIMITS OIL PRICE IMPACT-FINANCE MINISTER. Indonesia has minimised the economic impact of falling oil prices, kept inflation within limits and boosted exports, Finance Minister Radius Prawiro said. Indonesia was badly hit by last year's steep plunge in crude prices, which cut revenue from oil exports by half. But Prawiro was quoted by Indonesian newspapers as telling President Suharto that inflation was kept to around nine pct in the financial year ending tomorrow, against around 4.3 pct the previous year. Exports were estimated to have risen by seven pct, he said, although he did not give complete figures. The depressed economy forms the main backdrop to general elections next month in Indonesia, a major producer of rubber, palm oil, tin, timber and coffee. Prawiro said 1986/87 had also been difficult because of the appreciation of currencies like the yen and the mark against the dollar, which increased Indonesia's debt repayments. He said the economy would have suffered more from the world economic recession if the government had not devalued the rupiah by 31 pct last September. In an editorial on the economic outlook, the Jakarta Post said the government must press ahead with measures to deregulate the economy to help boost non-oil exports. The English-language daily said bigger export earnings were needed to finance not only imports but also the country's growing foreign debt, estimated at around 37 billion dlrs. "About 50 pct of our foreign debt obligations fall due within the next three to five years and will steadily increase the debt servicing burden," the paper said. However, end-investors were seen bargain hunting in expectation of a further yen interest rate decline, dealers said. Most dealers were cautious in the face of the dollar's nosedive today and the possibility of a U.S. Interest rate rebound to halt further dollar depreciation. A 4.7 pct coupon and volume of 1,400 billion yen for the April 10-year bond proposed by the Finance Ministry this afternoon were taken favourably by the market.  
BP U.K. REFINERY DUE TO PARTLY RE-OPEN NEXT WEEK. The British Petroleum Co PLC (BP.L) oil refinery at Grangemouth, closed after an explosion and fire eight days ago, is expected to partially reopen next week, a refinery spokesman said. He said the entire 178,500 bpd refinery has been shut since the accident which killed one person and damaged the site's hydrocracker. The main units will resume operation next week but the hydrocracker will be closed for an unspecified period. The spokesman said the refinery had been operating at about half its capacity since end-January due to overhaul work on part of the complex. The overhaul is expected to end by late April.  
MEXICAN FIRST QTR CRUDE EXPORTS SEEN AT 15.25 DLRS. The average price of mexico's crude oil exports in first quarter 1987 will be 15.25 dlrs per barrel, according to preliminary figures issued in a press release by the state oil company Petroleos Mexicanos (PEMEX). It gave no direct comparison with the year-ago figure but said crude and products sales were expected to rise to 1.99 billion dlrs this quarter, 420 mln dlrs higher than expected and 22 pct better than the year-ago quarter. Prospects for the second quarter were relatively favourable with crude exports seen at 1.320 mln bpd after an expected 1.324 mln this month, 1.323 in February and 1.395 mln in January.  
MEXICAN FIRST QTR CRUDE EXPORTS SEEN AT 15.25 DLRS. The average price of mexico's crude oil exports in first quarter 1987 will be 15.25 dlrs per barrel, according to preliminary figures issued in a press release by the state oil company Petroleos Mexicanos (PEMEX). It gave no direct comparison with the year-ago figure but said crude and products sales were expected to rise to 1.99 billion dlrs this quarter, 420 mln dlrs higher than expected and 22 pct better than the year-ago quarter. Prospects for the second quarter were relatively favourable with crude exports seen at 1.320 mln bpd after an expected 1.324 mln this month, 1.323 in February and 1.395 mln in January.  
CRUDE OIL NETBACKS UP IN U.S., MEDITERRANEAN. Crude oil netback values in complex refineries rose slightly in the U.S. and the Mediterranean last Friday from the previous week but were lower elsewhere, according to calculations by Reuters Pipeline. The soft tone to refining margins reflects large worldwide stocks of petroleum products and thin trading activity, traders said. In the U.S. Gulf, sweet crudes rose in value by as much as 26 cts a barrel for West Texas Intermediate, an increase of 1.4 pct from the previous Friday, while sour crudes, such as Alaska North Slope, were up one pct. In the Mediterranean, netback values were up 17 cts to 22 cts a barrel, with Arab Light up 17 cts a barrel to 18.62 dlrs, a 0.9 pct increase from the previous Friday and Urals were up 22 cts a barrel to 19.16 dlrs, a 1.2 pct increase. But netbacks for crude oil refined in Northern Europe was generally lower with Brent valued at 18.89 dlrs, off 30 cts from the previous friday, and Bonny Light was off 17 cts to 19.58 dlrs a barrel. Refinery netbacks in Singapore were also lower, with heavier and sour crudes weakest. Arab Heavy dropped 10 cts to 16.63 dlrs a barrel and Dubai was off 12 cts to 18.09 dlrs. On the U.S. West Coast, however, netback values for ANS CIF L.A. were weaker with weak gasoline prices sending the yield at cracking plants down 68 cts to 18.42 dlrs from the previous Friday, as shown below in dlrs a barrel. TOPPING.........15.63......16.10......14.30 CRACKING........18.42......19.10......16.86 The Mediterranean region also showed netback values rising last Friday over the previous week with the largest gains shown by Es Sider and the heavier Urals crude oil, which were each up 22 cts a barrel last Friday to 19.40 dlrs and 19.16 dlrs a barrel, respectively. Netback values for the mediterranean region are shown below in dlrs a barrel. GRADE...........MAR 27.....MAR 20.....FEB 27 ES SIDER........19.40......19.18......16.44 ARAB LIGHT......18.61......18.44......15.52 IRAN LT.........19.25......19.08......16.16 KUWAIT..........18.51......18.33......15.42 URALS cif.......19.16......18.94......16.07 Netbacks in Northern Europe's refinery region were lower last friday from the previous week with Brent falling 1.6 pct to 18.89 dlrs a barrel. Netbacks for other grades of oil refined in Northern Europe are shown below in dlrs a barrel. ................MAR 27.....MAR 20.....FEB 27 BRENT...........18.89......19.19......16.77 BONNY LIGHT.....19.58......19.75......17.15 ARAB LIGHT......18.49......18.52......16.07 URALS CIF.......19.02......18.98......16.54 Refinery netbacks in Singapore were also lower with heavier and sour crudes weakest. Arab Heavy dropped 10 cts to 16.63 dlrs a barrel and Dubai was off 12 cts to 18.09 dlrs. Netbacks for other grades of oil refined in Singapore  are shown below in dlrs a barrel. GRADE...........MAR 27.....MAR 20.....FEB 27 ATTAKA..........19.23......19.24......16.72 ARAB LIGHT......18.00......18.10......15.55 OMAN............18.21......18.25......16.31 DUBAI...........18.09......18.21......15.86 ARAB HEAVY......16.63......16.73......14.24  
LOWER REFINERY OPERATIONS SEEN PRODUCING PROFITS. U.S. refiners will have to reduce operations if they want to be profitable this year, said industry officials attending the National Petroleum Refiners Association meeting here. "If the refining sector can discipline itself to refine about 12 mln barrels of crude oil a day, we have a chance to pull down inventories to acceptable levels by the second quarter, said Archie Dunham, executive vice president of petroluem products at Conoco Inc "If not, the industry will have a tough 1987," he added. Last week's American Petroleum Institute report said that U.S. refining capacity rose three pct to 78.7 pct of capacity, with crude oil runs at 12.2 mln barrels per day for the week ended March 20. The API said that with the higher crude oil runs, distillate and gasoline inventories were sharply above year-ago levels. Gasoline stocks were at 245.6 mln barrels, some 17.2 mln barrels above year-ago levels. Distillate stocks, at 108.7 mln barrels, are 10.9 mln barrels above last year's level, the API said. Henry Rosenberg, chairman of Crown Central Petroleum Corp <CNP> told Reuters that unless refining and marketing return to profitability, oil companies will have to rely on downstream operations to produce an acceptable level of earnings. "The jump in refining capacity is a concern if it continues," said Kenneth Buckler, executive vice president of refining and marketing at <Total Petroleum Co>, a U.S. subsidiary of Cie Francaise Des Petroles of France. Refineries should operate near 75 pct of capacity given the current level of demand but the operating level should increase as gasoline demand picks up in the next quarter, Buckler said. Dunham said the potential operable capacity of U.S. refineries should also be cut about 500,000 barrels of crude per day. "I expect to see the shutdown of more small refineries over the next five years," he said, adding that these facilities refine between 10,000 and 30,000 barrels of crude oil per day. The API said U.S. operations have the capacity to refine 15.6 mln bpd of crude.  
VENEZUELA WANTS TO BOOST ITS REFINING CAPACITY. Venezuela's state oil company Petroleos de Venezuela S.A. wants to raise its worldwide refining capacity by 150,000 barrels of per day, a company official attending the National Petroleum Refiners Association meeting here said. He declined to be identified but said PdVSA has the capacity to refine about 650,000 bpd of crude oil from refining centers in Venezuela, Sweden, West Germany, Belgium, and the United States. The company recently purchased a 50 pct stake in the Corpus Christi, Texas refinery of Champlin Petroleum Co, a subsidiary of Union Pacific Corp <UNP>. Earlier it bought a similar stake in the Lake Charles, La refinery owned by Citgo Petroleum Corp, a unit of Southland Corp <SLC>. According to the official, Venezuela is searching worldwide for the additional refining capacity but he did not mention where the company was looking. Refineries abroad, he said, guarantee a refining outlet for Venezuelan crude oil while ensuring stability of supply to refiners. He said Venezuela currently  produces about 1.4 mln bpd of crude oil, which is in line with its 1.495 bpd OPEC ceiling.  
SHELL CANADA SCHEDULES ANNUAL REFINERY SHUTDOWN. Shell Canada Ltd, 72 pct owned by Royal Dutch/Shell Group <RD> <ST>, scheduled its annual maintenance refinery shutdowns during the next two months, company spokeswoman Judy Wish said. Wish said refineries will stockpile production before the shutdowns to maintain normal supply while maintenance is carried out. Production at Shell's major refinery at Strathcona Alberta, will be closed for about one month, Wish said. There will be no layoffs associated with the refinery maintenance, she added.  
EXXON (XON) SEES SYNFUELS ROLE BY YEAR 2000. Development of costly shale oil, liquified coal and other kinds of synthetic fuels, halted in recent years because of cheap and abundant petroleum supplies, will become economic again when world oil prices top 30 dlrs a barrel, an Exxon Co USA executive said. Joe McMillan, a senior vice president, told Reuters after addressing a Houston meeting of the American Institute of Chemical Engineers, "By early in the next century, synthetics should play a significant role in this country's energy supply." McMillan also told reporters at a news conference that he believed synthetic fuels would become economic to develop when world oil prices reached a 30 to 40 dlr a barrel price range. "You're talking about a 50 pct increase in crude oil prices, but I think that time is coming and we've got to be prepared," McMillan said. He predicted U.S. oil demand would rise by about one pct annually in the next few years while the nation fails to replace its oil reserves through exploration. By the turn of the century, world oil prices will be significantly higher because of declining supplies, McMillan said. Ashland Oil, Inc. chairman John Hall, who also spoke at the meeting, advocated some form of federal tax incentives to help spur development of synthetic fuels. The United States, Hall said, has nearly 500 billion tons of demonstrated coal reserves, an amount more than triple that of all the world's known oil reserves. "We must encourage research now in order to make synfuels competitive later," Hall said. The average lead time for development of a shale oil or liquified coal project is between five and ten years. Until last year, the federal government had subsidized synfuels development through the U.S. Synthetic Fuels Corp., a research program created during the Carter Administration with the goal of developing replacements for up to two mln barrels of oil. The corporation was shut down last April when Congress refused to continue funding its eight billion dlr budget because of uneconomic projects based on forecasts of 50 dlrs a barrel oil and 10 dlr per mcf natural gas during this decade.  
U.S. SHOULD REASSESS MIDEAST POLICY - ANALYST. The U.S. should reassess its Mideast policy in light of its rising dependence on imported oil, according to Charles Ebinger of the Center for Strategic and International Studies. "The prospect of rising dependence on oil imports from the Gulf, and the recent revelations of the Tower Commission report, mandate more than ever before the need for a fundamental reassessment of U.S. interests in the Middle East," Ebinger said. He remarks were made in an address to the National Petroleum Refiners Association meeting. "Although in the short run it is difficult to see a direct link between Arab anger and threats to oil supplies, in the current environment it will be increasingly difficult for moderate Arab leaders to be seen as friendly to U.S. interests," Ebinger said. Oil traders said threats to oil supplies has kept crude oil prices strong recently although some believe prices will be weaker if demand falls in the spring. But William Randol, analyst at First Boston Corp, said crude oil prices will hold  near current levels this spring. There will be no spring downturn, said Randol, speaking at the annual refiner meeting. He said there is a 40 pct chance that crude oil prices could move higher in the second half of the year, following an OPEC meeting scheduled for late June. He said he expects OPEC will extend its current agreement to restrict production. OPEC will renew its production pricing agreement in June because the value of the oil exports of the OPEC producers  has declined along with the U.S. dollar, Randol said. OPEC oil exports are priced in U.S. dollars, and the dollar has fallen about 30 pct in the last 18 months. Randol said U.S. crude oil imports will increase 3.5 to four mln barrels per day by 1990 as consumption rises 1.5 to two mln bpd, and supplies decline two mln bpd.  
CHEVRON <CHV>, NIPPON OIL FORM JOINT VENTURE. Chevron Corp said its Chevron U.S.A. Inc unit and Tokyo-based Nippon Oil Co Ltd agreed to conduct a joint-venture oil exploration and development program on selected Chevron leaseholds in the United States. About 50 onshore and offshore exploratory wells will be drilled under the agreement and Chevron will be the operator of the project and pay some costs, the company said. It said Nippon will contribute an initial investment of more than 100 mln dlrs. The Japanese government will also participate in the venture by providing financing to Nippon through the Japanese Oil Corp, Chevron said. It said drilling will begin during the second quarter. Properties to be evaluated are located in California, Colorado, Kansas, Oklahoma, Mississippi, Montana, North Dakota, Texas, Utah, and Wyoming, along with Federal Outer Continental Shelf leases offshore Southern California and in the Gulf of Mexico, Chevron said.  
TREASURY'S BAKER SAYS REAGAN UNLIKELY TO ALTER OPPOSITION TO OIL IMPORT FEE.  TREASURY'S BAKER SAYS REAGAN UNLIKELY TO ALTER OPPOSITION TO OIL IMPORT FEE  
TREASURY'S BAKER SEES REAGAN OPPOSING OIL TAX. Treasury Secretary James Baker told the House Appropriations Committee that he believes the president remains opposed to an oil import fee. He said Reagan last year rejected the idea and he added: "In my personal view he is not likely to change his thinking on that." He said Reagan last year opposed the idea because the energy industry was divided on the issue, a tax would require a new bureacracy to administer and the resulting higher energy prices would harm U.S. competitiveness.  
U.S. OFFICIALS DEFEND OIL RESERVE SALE PLAN. Treasury Secretary James Baker and Office of Management and Budget chief James Miller defended an administration plan to sell the U.S. Naval Petroleum Reserves. In response to hostile questioning from a member of the House Appropriations Committee, the officials said the plan was justified to help bring the fiscal 1988 budget deficit and to get the government out of the oil business. Miller acknowleged the estimated sale proceeds at 3.3 billion dlrs would actually bring down the deficit by about 2.2 billion dlrs because of the loss of revenues from the sale of oil from the reserves. Miller said the sale price may end up higher. "We'd sell it to the highest bidder," Miller said. "If we can get more we'll take it."  
UNION PACIFIC <UNP>CLOSES VENEZUELAN PARTNERSHIP. Union Pacific Corp said it has closed the previously announced 50-50 partnership with Petroleos de Venezuela SA, Venezuela's national oil company, to own a 160,000 barrel per day refinery in Corpus Christi, Texas. Union Pacific said the partnership, called Champlin Refining Co, will acquire the refining and distribution system owned and operated by Union Pacific's Champlin Petroleum Co subsidiary. The Venezuelan company also signed a 25-year feedstock agreement with the partnership to supply at least 140,000 barrels a day of Venezuelan crude oil and naphtha at market related prices.  
IMPERIAL OIL <IMO.A> IN TALKS WITH SUPPLIERS. Imperial Oil Ltd, 70 pct-owned by Exxon Corp <XON>, is negotiating with it major crude oil suppliers concerning the effects of a trial deregulation of Alberta's shut-in crude oil production, scheduled to be implemented on June 1, a company spokesman said. "From our point of view, it's a question of entering into negotiations or discussions to make appropriate changes to contracts to reflect the changes that are going to take place on June 1," spokesman John Cote told Reuters in reply to a query. Commenting on published reports that Imperial had suspended its oil supply contracts, Cote said: "It's not a question of cancelling or suspending any of the agreements at this point." On June 1, Alberta's Energy Resources Conservation Board will lift its crude oil marketing prorationing system, regulating shut-in light and medium crude production, on a trial basis to the end of 1987. Under the new system, producers and refiners will be allowed to negotiate volumes of shut-in oil to be delivered under purchase contracts. Shut-in crude is the surplus between the total amount of oil being produced and the amount being purchased by refiners. "We have talked to a number of our major suppliers, and we've discussed the upcoming change with them, but nothing has been finalized," Imperial's manager of western crude supply Gary Strong said. Under Alberta's trial system, Imperial wants to match a reasonable supply of crude against the company's forecast demand for its refineries, Strong said. "We have to know what they have and how that relates to what we need in total," he said. Strong said figures on the amount of crude production Imperial purchases from outside suppliers were not immediately available.  
OIL PRICES SAID NOW BASED ON FUTURES PRICE. Energy futures now set the standard for oil pricing, said Arnold Safer, president of The Energy Futures Group Inc, a consulting firm. "Petroleum futures trading at the New York Mercantile Exchange literally set spot market prices in the U.S.," he said, adding that some oil products sellers now offer contracts based on a daily average of NYMEX prices. He also said that petroleum futures are a major market for oil companies as well as for commodity traders. His remarks were made at the National Petroleum Refiners Association.  
STANDARD OIL RAISES ALASKA NORTH SLOPE BY 1.50 DLRS, effective APRIL ONE.  STANDARD OIL RAISES ALASKA NORTH SLOPE BY 1.50 DLRS, effective APRIL ONE  
MOBIL RAISES WEST COAST CRUDE PRICES BETWEEN ONE DLR AND. 1.75 DLRS/BBL TODAY  MOBIL RAISES WEST COAST CRUDE PRICES BETWEEN ONE DLR AND 1.75 DLRS/BBL TODAY  
MOBIL <MOB> RAISES WEST COAST CRUDE POSTINGS. Mobil Corp said it raised its west coast crude postings, effective today. The Buena Vista light grade, at 26 degrees api gravity, was raised 1.35 dlrs a barrel to 15.55 dlrs/bbl, while the Huntington Beach light grade, at 16 degrees, was raised about 1.75 dlrs/bbl to 14.10 dlrs/bbl. The heavier Wilmington grade, at 17 degrees, was increased 1.20 dlrs to 14.30 dlrs/bbl. Kern River crude, at 13 degrees, was increased 1.00 dlr to 13.00 dlrs/bbl. Mobil also said that effective today it changed its gravity adjustment scale as follows: From 20 degrees to 34 degrees API, Mobil will adjust its price 0.015 of a ct per one-tenth of an API degree. Below 20 degrees API, the company will adjust its price 0.020 ct per one-tenth of a degree. Crude grades from 34 degrees API to above 40 degrees are unaffected.  
NP ENERGY <NPEEQ> SAYS TRUSTEE APPOINTED. NP Energy Corp said the U.S. Bankruptcy Court has indicated it will appoint a trustee to oversee the company's Chapter 11 bankruptcy proceedings. It said it hopes the appointment will thwart "hostile" actions being pursued by two unsecured creditors to whose claims the company objects. NP further said the Nielsen 1-20 well in Duchesne County, Utah, has tested 300 barrels of oil per day.  NP owns a 61 pct working interest.  
CLOSURE OF BP SWEDEN REFINERY FORECAST. A Swedish Finance Ministry committee forecast that British Petroleum Plc <BP.L> may have to close its refinery in Gothenburg because of an anticipated worsening of the Swedish petroleum industry's competitiveness. It said in a report that the future of the Swedish refining business was bleak due to the steady drop in domestic oil consumption since the mid-1970s, a possible tightening of rules on sulphur content and competition from Norway's Mongstad facility of <Den Norske Stats Olieselskab> (Statoil) <STAT.OL> when its expansion is completed in the 1990s. The committee said the BP refinery, which lacks a de-sulphurisation plant, was likely to be closed or sold unless costly investments were made to enhance the facility's capacity to refine a broader range of products. But the committee noted that capacity utilisation had in recent years been above that of the European refining industry on average. The BP plant, in which Sweden's state-owned <OK Petroleum AB> has a 22 pct, started up in 1967 and has an annual capacity of 4.7 mln tonnes. There was nobody at British Petroleum immediately available for comment.  
NORSK HYDRO, SAGA SEEK DRILLING RIGHTS IN GABON. Norwegian oil companies Norsk Hydro A/S <NHY.OL> and Saga Petroleum A/S <SAGO.OL> said they have applied for offshore exploration drilling licenses in Gabon on Africa's west coast. Saga Petroleum said it has applied for a 35 pct share and operatorship on one block, adding Finnish oil company Neste <NEOY.HE>(25 pct), Spain's Hispanoil (25 pct), and the World Bank's International Finance Corporation (IFS) (15 pct) have joined Saga to fill remaining shares in the application. Saga spokesman Roy Halvorsen told Reuters he expected Gabonese officials would reply to the application by Easter. Halvorsen said this is the first time Saga has applied to operate on OPEC-member Gabon's continental shelf, adding that Italian oil company Agip is heading a group of applicants in a separate bid for the same license. Norsk Hydro has also applied for an undisclosed share in a single exploration license in which U.S. Oil company Tenneco has already been assigned operatorship, company spokesman Bjoern Tretvoll said.  
BP SAYS NO PLANS TO CLOSE SWEDISH REFINERY. The British Petroleum Co Plc <BP.L> said it had no plans to close its refinery in Gothenburg, despite forecasts by a Swedish finance ministry committee that it might be planning such a move. The committee said the refinery's future looked bleak because the Swedish petroleum industry's competitiveness was expected to worsen unless it invested, and because of the effects of a possible tightening of rules on sulphur content. But BP said the unit, in which Sweden's <OK Petroleum AB> has a 22 pct stake, had performed well both technically and financially up to and including the first quarter of 1987. Current restrictions on sulphur emissions and known future plans for both Sweden and export markets did not cause it any serious problems, it said in a statement. The refinery started up in 1967 and has an annual capacity of 4.7 mln tonnes.  
BRAZIL TO BUY 30,000 BPD OF KUWAITI OIL. Brazil will import 30,000 barrels per day of crude oil from Kuwait, a spokesman for the state oil company Petrobras said. He said that, unlike Saudi Arabia, Kuwait did not impose any conditions on Brazil. Last month, Petrobras cancelled a 40-mln dlr oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the official Bank of Brazil. The Saudis eventually lifted the condition and Brazil decided to reconfirm the purchase. Brazil currently consumes 1.1 mln barrels of oil per day.  
CANADA OIL INDUSTRY SET FOR RECOVERY - ANALYSTS. Firmer crude oil prices, government aid packages and corporate spending cuts will help Canada's oil industry recover from last year sharp downturn, industry analysts said. They said there will be significant earnings gains in 1987 compared to last year's dismal results when oil prices dropped about 50 pct. On Canada's stock exchanges, energy shares have soared to their highest levels since 1983, with many issues trading at record highs. "This is reflecting a tremendous amount of optimism on the part of the investment community that the outlook for the industry for the future is extremely attractive," Peters and Co Ltd oil analyst Wilf Gobert said. Financial statements from Canada's major oil companies, culminating with Dome Petroleum Ltd's 2.20 billion Canadian dlr 1986 loss reported this week, painted a bleak picture of last year's results, analysts said. "But the financial statements are a snap shot and a recording of history. The stock market is the indication of the future," Gobert commented. The Toronto Stock Exchange's oil and gas index of 41 companies is up to 4065.4 so far in trading today from 3053.15 at the end of 1986. Among Canada's largest oil companies, class A shares of Imperial Oil Ltd <IMO.A>, 70 pct owned by Exxon Corp <XON>, is trading at 71, up from a 52-week low of 34-3/4. Shell Canada Ltd, 72 pct owned by Royal Dutch/Shell Group, is at 40-1/2, up from a low during the last year of 18-3/4. Texaco Canada Inc <TXC>, 78 pct owned by Texaco Inc <TX>, is at 34-7/8, up from a low of 24-1/2. Levesque Beaubien Inc oil analyst Robert Plexman forecasts operating profit for 10 of Canada's largest oil and gas companies will rise 37 pct in 1987 to about 1.44 billion dlrs and operating cash flow will increase 12 pct to 3.24 billion dlrs, based on an average oil price for the year of 16.50 U.S. dlrs a barrel. "However, if prices hold about 18 U.S. dlrs a barrel...1987 net operating income could show a 69 pct increase with cash flow 27 pct higher," analyst Plexman said. "Although it is difficult to forecast the extent of the profit improvement this year, the gain should be significant," he added. Those improvements follow a sharp downturn in 1986, when operating income for the ten companies dropped 47 pct to 1.05 billion dlrs and operating cash flow fell 22 pct to 2.90 billion dlrs. But one industry source doesn't think oil prices will hold recent gains and more government assistance is needed. Canadian Petroleum Association technical director Hans Maciej sees industry cash flow falling another 10 pct in 1987, after dipping about 60 pct last year. Maciej said he sees crude oil supply outweighing demand and doesn't believe a recent OPEC production accord will continue to support prices. However, several companies share the optimistic industry outlook expressed by a majority of analysts. Shell Canada and <Norcen Energy Resources Ltd> forecast improved 1987 earnings in their annual reports issued this week, assuming oil prices remain at or above 1986 levels. "The industry's outlook for 1987 is positive, but not robust," Texaco Canada said in its annual report. "While oil prices have strengthened somewhat and there is good reason to believe that the general level is sustainable, continued volatility is likely," Texaco Canada added. In the face of short-term uncertainty, many companies have pared 1987 spending plans from last year's lower levels, deferring most frontier exploration work. "The industry is becoming very selective in investments, very conservative and cautious, which is not unexpected," Canadian Petroleum Association's Maciej said. Federal and Alberta goverment aid measures helped cushion the industry downturn in 1986 and are improving 1987 results. The most significant help came last September when the federal government lifted the 10 pct Petroleum Gas Revenue Tax (PGRT) 28 months earlier then planned. Analysts estimate the tax relief will save larger oil companies about 1.50 billion dlrs by the end of 1988. The PGRT cut helped brake the steep profit and cash flow decline in 1986 for many oil companies and prevented further exploration spending cuts, analysts said. "For a number of companies, the PGRT cut was absolutely necessary to even maintain the kind of reduced investments that were made, otherwise the reduction would have been considerably more," Maciej said.  
PETROBRAS SEES RAISING EXPORT OF FUEL IN 1987. Brazil's state oil company Petrobras is pledging to export 4.6 mln cubic meters of fuel, or 28.9 mln barrels in 1987, a company spokesman said. He said that represents a total sale worth 600 mln dlrs. The volume is 27 pct higher over 1986 sales, which totalled 3.6 mln cubic meters, or 22.6 mln barrels. The United States, Africa and Latin American are Brazil's main fuel buyers, the spokesman said.  
COLOMBIA'S MAIN OIL PIPELINE ATTACKED. State-run oil company Ecopetrol said Colombia's main oil pipeline was bombed again and pumping of 170,000 barrels per day was suspended. A spokeswoman for the company said that the early morning dynamite attack was the 31st in the last nine months on the Cano Limon-Covenas pipeline, which links Colombia's biggest oilfied at Cravo Norte to the Caribbean. She said about 2,000 barrels of crude were spilled and could not indicate when pumping would resume. The attack was near Magangue in northeastern Bolivar province. Ecopetrol is exploiting Cravo Norte in association with Occidental Petroleum Corp <OXY> and Shell Petroleum N.V., a unit of the Royal Dutch/Shell Group <RD> <ST>. Ecopetrol said in a communique that bombings since last July led to a loss of more than 110,000 barrels of crude, or the equivalent of 10 mln dlrs.  
BRAZIL MAKES SECOND AMAZON OIL DISCOVERY. The Brazilian state oil company Petrobras has made a second oil discovery in the Amazon region, President Jose Sarney said. He said the well had an initial flow of 150,000 cubic meters of gas and 220 barrels of oil per day. It is situated 14 kilometres from the first well to be discovered in the region last year, which is currently yielding 500,000 cubic meters of gas and 900 barrels of oil daily. The wells, the biggest onshore well in the country, are on the banks of the river Uruc in the Amazon basin 3,600 kilometres (2,250 miles) north of Brasilia.  
IEA SEES ONE PCT GROWTH IN 1987 OECD OIL DEMAND. Growth in oil consumption in the Western industrialised countries is likely to slow to around one pct this year compared with 2.3 pct in 1986, the International Energy Agency (IEA) said. Oil use in the 24 countries of the OECD increased by around one pct in first quarter 1987 to 35.9 mln bpd, the IEA said in its Monthly Oil Market Report. Growth in OECD countries is expected to come primarily from transport fuels, as in 1986. But if average consumer prices are higher than 1986, the rate of growth for these fuels may be below last year's 3.6 pct, it said. The IEA said that assuming crude oil and product prices stay close to current levels, some destocking by end-users can be expected. If that happens, natural gas will also regain some of the market share it lost to heavy fuel in 1986, and there may be slightly less growth in transport fuels. IEA estimates on April 1 put oil stocks in the OECD area at 428 mln tonnes, representing 98 days of forward consumption. This is about the same level as at the begining of the year. The agency said this flat trend is explained by the projected seasonal consumption decline in the second quarter of the year which offset a reduction in stocks. It said initial estimates indicate that company stocks fell by 1.2 mln bpd in OECD countries in the first quarter of the year. This followed a small rise in January of 0.4 mln bpd but a decline of 1.5 mln bpd in February and 2.5 mln bpd in March. It is possible that final data will show a larger draw, particulary for March, it said. As crude production also fell, there is likely to have also been a decline in non-reported stocks, particularly at sea, the IEA said. Company stocks on land in the OECD rose to 326 mln tonnes on April 1 against 316 mln on April 1 1986. Governments built up strategic stocks to 102 mln tonnes against 97 mln in the period. The year-on-year trend of government stock building is continuing with year-on-year company stocks also rising, more or less in line with consumption, after declining for five years, the IEA noted. Oil stocks on land in the U.S. And Canada were put at 206.6 mln tonnes on April 1, down from the 214 mln tonnes on January 1 and equivalent to 94 and 98 days of consumption, respectively. Oil stocks in Western Europe were 147.4 mln tonnes on April 1, down from the 154 mln on January 1 but still equivalent to 94 days of consumption. World oil supply fell in the first quarter by about two mln bpd to 45.2 mln bpd from 47.2 mln bpd in last quarter 1986. This drop was mostly due to a decline in OPEC crude production to around 15.5 mln bpd in February/March from 16.5 mln bpd in January and to the seasonal drop in exports from centrally-planned Economies, the IEA said. Total OPEC crude oil supply was 15.8 mln bpd in the first quarter, plus 1.4 mln bpd of NGLs, compared with 17.3 mln bpd of crude in the last three months of 1986 and 17.9 mln average for the whole of 1986. Supply from non-OPEC countries totalled 28 mln bpd, against 28.5 mln bpd in the fourth quarter 1986. A drop in Saudi Arabian output to a tentatively forecast 3.3 mln bpd in March from 3.6 mln bpd in February was the largest factor behind the OPEC production decline, the IEA said. Saudi Arabia"s Opec-assigned output quota is 4.133 mln bpd.  
IEA FORECASTS SLOWER GROWTH IN OECD OIL DEMAND. Growth in oil consumption in the Western industrialized countries is likely to slow to around one pct this year compared with 2.3 pct in 1986, the International Energy Agency said. Oil use in the 24 member countries of the Organization for Economic Cooperation and Development (OECD) increased by around one pct in the first quarter of 1987 to 35.9 mln barrels a day, the IEA said in its latest monthly report. Growth in OECD countries is expected to come primarily from transport fuels, as was the case in 1986. But if average consumer prices are higher than 1986, the rate of growth for these fuels may be below last year's 3.6 pct. The IEA said assuming crude and product prices remain nar current levels, some destocking by end-users can be expected. If that takes place, natural gas will also regain some of the market share it lost to heavy fuel in 1986, it said. IEA estimates on April one put oil stocks held in the OECD area at 428 mln tonnes, or 98 days of forward consumption. This is about the same as at the begining of the year. The agency said this flat trend is explained by the projected seasonal consumption decline in the second quarter of the year which offset a reduction in stocks. Company stocks on land in the OECD rose to 326 mln tonnes on April one this year compared with 316 mln tonnes in calender 1986 while governments also built up their strategic stocks to 102 mln tonnes against 97 mln in 1986. The year-on-year trend of government stock building is continuing with company stocks rising, more or less in line with consumption, after declining for five years, IEA said. Oil stocks on land in the United States and Canada were put at 206.6 mln tonnes down from the 214 mln tonnes on January one and equivalent to 94 and 98 days of consumption, respectively. Oil stocks in Western Europe were 147.4 mln tonnes, down from the 154 mln tonnes on January one but still equivalent to 94 days of consumption. The IEA said that initial estimates indicate that company stocks fell by 1.2 mln bpd in OECD countries in the first quarter of the year. This followed a small rise in January of 400,000 bpd but a decline of 1.5 bpd in February and 2.5 bpd in March. And it is possible that final data will show a larger draw, particulary for March, it said. As crude production also fell, there is likely to have also been a decline in non-reported stocks, particularly at sea, the IEA said. World oil supply fell through the first quarter by about two bpd to 45.2 bpd from 47.5 bpd in the last quarter of 1986. This drop was mostly due to a decline in OPEC crude production to around 15.5 bpd in February/March from 16.5 bpd in January and to the seasonal drop in exports from Centrally Planned Economies, the IEA said. Total OPEC oil supply totalled 17.2 bpd in the first quarter of 1987 compare with 19.3 bpd in the last three months of 1986 while supply from non-OPEC countries totalled 28 bpd as against 28.2 bpd in the same 1986 period. A drop in Saudi Arabian output to a tentatively forecast 3.3 bpd in march from 3.6 bpd in February was the largest factor behind the OPEC production decline, the IEA said.  
OCCIDENTAL <OXY> IN BIG PERU HEAVY OIL FIND. Occidental Petroleum Corp said the Shiviyacu-23 development well on Block 1-AB in the Peruvian Amazon jungle is producing 6,593 barrels of 22 degree gravity oil per day from depths of 9,543 to 9,547 and 9,556 to 9,599 feet. The company said it is drilling a new exploration well on the block, Southeast Shiviyacu-1, 2.5 miles away.  
BP SCOTTISH REFINERY SET TO RESTART THIS WEEK. The British Petroleum <BP.L> Co Plc's refinery at Grangemouth, Scotland, shut down after an explosion and fire in the hydrocracker on March 22, will probably be back in operation towards the week-end, a refinery spokesman said. He said the refinery will resume at about half its 178,500 barrels per day (bpd) capacity, as work on overhauling the North Side of the complex, which began at the end of January, will not be completed before the end of April. He said the refinery had been closed for longer than originally expected due to the lengthy safety checks being carried out prior to restarting. The explosion and fire, in which one worker was killed, caused extensive damage to the central part of the 32,000 hydrocracker and the spokesman said today this unit would be out of operation for several months. The remainder of the refinery, including the 19,000 catalytic cracker, was undamaged. He said inquiries into the accident, which happened while the hydrocracker was not in operation, were continuing. In an earlier incident, two people were killed in an explosion and fire at the refinery on March 13.  
COOPERATIVE ENERGY TESTS OIL AT TWO WELLS. <Cooperative Energy Development Corp> said two exploratory oil wells in the Zama area of Alberta tested 1,020 and 950 barrels a day, and will increase the company's daily oil production by 30 pct. The company did not immediately elaborate on total production figures. The wells, flowing oil from the Keg River formation, will be constrained to combined production of about 450 barrels a day to optimize reserve recovery, the company said. Permanent production facilities are being installed and the wells will produce to pipeline by mid-April.  
CHAMPION PRODUCTS <CH> APPROVES STOCK SPLIT. Champion Products Inc said its board of directors approved a two-for-one stock split of its common shares for shareholders of record as of April 1, 1987. The company also said its board voted to recommend to shareholders at the annual meeting April 23 an increase in the authorized capital stock from five mln to 25 mln shares.  
COBANCO INC <CBCO> YEAR NET. Shr 34 cts vs 1.19 dlrs Net 807,000 vs 2,858,000 Assets 510.2 mln vs 479.7 mln Deposits 472.3 mln vs 440.3 mln Loans 299.2 mln vs 327.2 mln Note: 4th qtr not available. Year includes 1985 extraordinary gain from tax carry forward of 132,000 dlrs, or five cts per shr.  
AM INTERNATIONAL INC <AM> 2ND QTR JAN 31. Oper shr loss two cts vs profit seven cts Oper shr profit 442,000 vs profit 2,986,000 Revs 291.8 mln vs 151.1 mln Avg shrs 51.7 mln vs 43.4 mln Six mths Oper shr profit nil vs profit 12 cts Oper net profit 3,376,000 vs profit 5,086,000 Revs 569.3 mln vs 298.5 mln Avg shrs 51.6 mln vs 41.1 mln NOTE: Per shr calculated after payment of preferred dividends. Results exclude credits of 2,227,000 or four cts and 4,841,000 or nine cts for 1986 qtr and six mths vs 2,285,000 or six cts and 4,104,000 or 11 cts for prior periods from operating loss carryforwards.  
BROWN-FORMAN INC <BFD> 4TH QTR NET. Shr one dlr vs 73 cts Net 12.6 mln vs 15.8 mln Revs 337.3 mln vs 315.2 mln Nine mths Shr 3.07 dlrs vs 3.08 dlrs Net 66 mln vs 66.2 mln Revs 1.59 billion vs 997.1 mln  
DEAN FOODS <DF> SEES STRONG 4TH QTR EARNINGS. Dean Foods Co expects earnings for the fourth quarter ending May 30 to exceed those of the same year-ago period, Chairman Kenneth Douglas told analysts. In the fiscal 1986 fourth quarter the food processor reported earnings of 40 cts a share. Douglas also said the year's sales should exceed 1.4 billion dlrs, up from 1.27 billion dlrs the prior year. He repeated an earlier projection that third-quarter earnings "will probably be off slightly" from last year's 40 cts a share, falling in the range of 34 cts to 36 cts a share. Douglas said it was too early to project whether the anticipated fourth quarter performance would be "enough for us to exceed the prior year's overall earnings" of 1.53 dlrs a share. In 1988, Douglas said Dean should experience "a 20 pct improvement in our bottom line from effects of the tax reform act alone." President Howard Dean said in fiscal 1988 the company will derive  benefits of various dairy and frozen vegetable acquisitions from Ryan Milk to the Larsen Co. Dean also said the company will benefit from its acquisition in late December of Elgin Blenders Inc, West Chicago. He said the company is a major shareholder of E.B.I. Foods Ltd, a United Kingdom blender, and has licensing arrangements in Australia, Canada, Brazil and Japan. "It provides ann entry to McDonalds Corp <MCD> we've been after for years," Douglas told analysts.  
BROWN-FORMAN <BFDB> SETS STOCK SPLIT, UPS PAYOUT. Brown-Forman Inc said its board has approved a three-for-two stock split and a 35 pct increase in the company cash dividend. The company cited its improved earnings outlook and continued strong cash flow as reasons for raising the dividend. Brown-Forman said the split of its Class A and Class B common shares would be effective March 13. The company said directors declared a quarterly cash dividend on each new share of both classes of 28 cts, payable April one to holders of record March 20. Prior to the split, the company had paid 31 cts quarterly. Brown-Forman today reported a 37 pct increase in third quarter profits to 21.6 mln dlrs, or 1.00 dlr a share, on a seven pct increase in sales to a record 337 mln dlrs. Brown-Forman said nine month profits declined a bit to 66.0 mln dlrs, or 3.07 dlrs a share, from 66.2 mln dlrs, or 3.08 dlrs a share, a year earlier due to a second quarter charge of 37 cts a share for restructuring its beverage operations. The company said lower corporate tax rates and the restructuring "are expected to substantially improve Brown-Forman's earnings and cash flow in fiscal 1988."  
ESQUIRE RADIO AND ELECTRONICS INC <EE> 4TH QTR. Shr profit 15 cts vs profit four cts Annual div 72 cts vs 72 cts prior yr Net profit 72,000 vs profit 16,000 Revs 7,075,000 vs 2,330,000 12 mths Shr profit 42 cts vs loss 11 cts Net profit 203,000 vs loss 55,000 Revs 16.1 mln vs 3,971,000 NOTE: annual dividend payable April 10, 1987, to stockholders of record on March 27, 1987.  
UNITED PRESIDENTIAL CORP <UPCO> 4TH QTR NET. Shr 39 cts vs 50 cts Net 1,545,160 vs 2,188,933 Revs 25.2 mln vs 19.5 mln Year Shr 1.53 dlrs vs 1.21 dlrs Net 6,635,318 vs 5,050,044 Revs 92.2 mln vs 77.4 mln NOTE: Results include adjustment of 848,600 dlrs or 20 cts shr for 1986 year and both 1985 periods from improvement in results of its universal life business than first estimated.  
OWENS AND MINOR INC <OBOD> RAISES QTLY DIVIDEND. Qtly div eights cts vs 7.5 cts prior Pay March 31 Record March 13  
COMPUTER LANGUAGE RESEARCH IN <CLRI> 4TH QTR. Shr loss 22 cts vs loss 18 cts Net loss 3,035,000 vs loss 2,516,000 Revs 20.9 mln vs 19.6 mln Qtly div three cts vs three cts prior Year Shr profit two cts vs profit 34 cts Net profit 215,000 vs profit 4,647,000 Revs 93.4 mln vs 98.7 mln NOTE: Dividend payable April one to shareholders of record March 17.  
<CINRAM LTD> 4TH QTR NET. Shr 45 cts vs 58 cts Net 1.1 mln vs 829,000 Sales 7.9 mln vs 9.4 mln Avg shrs 2,332,397 vs 1,428,000 Year Shr 1.22 dlrs vs 1.06 dlrs Net 2.9 mln vs 1.5 mln Sales 25.7 mln vs 22.2 mln Avg shrs 2,332,397 vs 1,428,000  
STANDARD TRUSTCO SEES BETTER YEAR. Standard Trustco said it expects earnings in 1987 to increase at least 15 to 20 pct from the 9,140,000 dlrs, or 2.52 dlrs per share, recorded in 1986. "Stable interest rates and a growing economy are expected to provide favorable conditions for further growth in 1987," president Brian O'Malley told shareholders at the annual meeting. Standard Trustco previously reported assets of 1.28 billion dlrs in 1986, up from 1.10 billion dlrs in 1985. Return on common shareholders' equity was 18.6 pct last year, up from 15 pct in 1985.  
HANDY AND HARMAN <HNH> 4TH QTR LOSS. Shr loss 51 cts vs loss three cts Net loss 7,041,000 vs loss 467,000 Rev 138.9 mln vs 131.4 mln 12 months Shr loss 64 cts vs profit 46 cts Net loss 8,843,000 vs profit 6,306,0000 Rev 558.9 mln vs 556.7 mln NOTE: Net loss for 4th qtr 1986 includes charge for restructuring of 2.6 mln dlrs after tax, or 19 cts a share. 1986 net loss includes after tax special charge of 2.7 mln dlrs, or 20 cts a share.  
AMERICA FIRST MORTGAGE SETS SPECIAL PAYOUT. <America First Federally Guaranteed Mortgage Fund Two> said it is making a special distribution of 71.6 cts per exchangeable unit, which includes 67.62 cts from return on capital and 3.98 cts from income gains.  
EMHART CORP <EMH> QTLY DIVIDEND. Qtly div 35 cts vs 35 cts prior Payable March 31 Record March nine  
AM INTERNATIONAL <AM> CITES STRONG PROSPECTS. AM International Inc, reporting an operating loss for the January 31 second quarter, said prospects for the balance of the fiscal year remain good. It said orders at its Harris Graphics subsidiary, acquired in June 1986, "continue to run at a strong pace." For the six months, orders rose 35 pct over the corresponding prior-year period, or on an annualized basis are running at about 630 mln dlrs. The backlog at Harris is up 30 pct from the beginning of the fiscal year, AM said. AM International said its old division are expected to benefit from recent new product introductions and the decline in the value of the dollar. "Research, development and engineering expenditures in fiscal 1987 will be in the 45-50 mln dlr range, and the company said it has allocated another 30-40 mln dlrs for capital expenditures. Earlier AM reported a fourth quarter operating loss of two cts a share compared to profits of seven cts a share a year ago. Revenues rose to 291.8 mln dlrs from 151.1 mln dlrs.  
GULF APPLIED <GATS> SELLS UNITS, SEES GAIN. Gulf Applied Technologies Inc said it sold its pipeline and terminal operations units for 12.2 mln dlrs and will record a gain of 2.9 mln dlrs in the first quarter. It added that any federal taxes owed on the transaction will be offset by operating loss carryovers.  
FARMERS GROUP INC <FGRP> 4TH QTR NET. Shr 80 cts vs 72 cts Net 55,513,000 vs 48,741,000 Revs 290.9 mln vs 264.2 mln Year Shr 3.09 dlrs vs 2.72 dlrs Net 213,470,000 vs 184,649,000 Revs 1.12 billion vs 992.9 mln Avg shrs 69,127,000 vs 68,004,000  
POTOMAC ELECTRIC POWER CO <POM> JAN NET. Shr 27 cts vs 29 cts Net 13,555,000 vs 14,635,000 Revs 104,606,000 vs 110,311,000 Avg shrs 47.2 mln vs 47.1 mln 12 mths Shr 4.10 dlrs vs 3.66 dlrs Net 226,653,000 vs 186,790,000 Revs 1.4 billion vs 1.3 billion Avg shr 47.1 mln vs 47.1 mln  NOTE: latest 12 mths net includes gain 46 cts per share for sale of Virginia service territory to Dominion Resources Inc <D>.  
TULTEX CORP <TTX> SETS QUARTERLY DIVIDEND. Qtly div eights cts vs eight cts prior Pay April one Record March 13  
ATICO FINANCIAL CORP <ATFC> 4TH QTR NET. Shr 30 cts vs 5.92 dlrs Net 1,142,000 vs 16.0 mln Revs 10.6 mln vs 24.2 mln Year Shr 90 cts vs 6.20 dlrs Net 3,320,000 vs 16.9 mln Revs 45.00 mln vs 26.2 mln NOTE: 1986 4th qtr and yr amounts include acquisition of 98.8 pct of common of Atico, formerly Peninsula Federal Savings and Loan Association, on January 24, 1986. 1985 4th qtr and yr net include net gain of 15.9 mln dlrs or 5.86 dlrs per share on exchange of common of Pan America Banks Inc for common of NCNB Corp purusant to a merger of the companies.  
PHILIPPINE LONG DISTANCE <PHI> YEAR NET. Shr primary 95.30 pesos vs 29.71 pesos Shr diluted 61.11 pesos vs 18.49 pesos Qtly div 1.25 pesos vs 1.25 pesos Net 1.9 billion vs 779 mln Revs 6.1 billion vs 4.7 billion NOTE: Full name Philippine Long Distance Telephone Co. Figures quoted in Philippine Pesos. Dividend payable April 15 to holders or record March 13. Exchange rate on day of dividend declaration was 20.792 pesos per dollar.  
LIBERTY ALL-STAR EQUITY FUND INITIAL DIV. Qtly div five cts vs N.A. Payable April two Record March 20 NOTE:1986 dividend includes special two cts per share for the period beginning with the fund's commencement of operations on Novebmer three through December 31, 1986.  
COMBUSTION ENGINEERING INC <CSP> REGULAR DIV. Qtly div 25 cts vs 25 cts prior Pay April 30 Record April 16  
TONKA CORP <TKA> RAISES DIVIDEND. Qtly div two cts vs 1.7 cts Pay March 26 Record March 12  
BDM INTERNATIONAL <BDM> INCREASES QTRLY DIVS. Annual div Class A 14 cts vs 12 cts prior Annual div Class B 12.1 cts vs 10.4 cts prior Payable April one Record March 20 NOTE: full name is BDM International Inc.  
SYSTEMATICS INC <SYST> REGULAR PAYOUT. Qtly div three cts vs three cts prior Pay March 13 Record February 27  
<IVACO INC> YEAR NET. Shr 1.11 dlrs vs 1.04 dlrs Net 44,092,000 vs 35,145,000 Revs 1.94 billion vs 1.34 billion Note: 1986 results include extraordinary gain of 1,035,000 dlrs or six cts a share from secondary share offering of Canron unit.  
CORADIAN CORP <CDIN> 4TH QTR NET. Shr profit three cts vs loss three cts Net profit 363,000 vs loss 197,000 Revs 3,761,000 vs 2,666,000 Year Shr profit one cent vs loss 37 cts Net profit 129,000 vs loss 1,715,000 Revs 11.4 mln vs 10.9 mln Avg shrs 10,694,081 vs 4,673,253  
MERIDIAN BANCORP INC <MRDN> SETS REGULAR PAYOUT. Qtly div 25 cts vs 25 cts prior Pay April one Record March 15  
LIBERTY ALL-STAR <USA> SETS INITIAL PAYOUT. Liberty All-Star Equity Fund said it declared an initial dividend of five cts per share, payable April two to shareholders of record March 20. It said the dividend includes a quarterly dividend of three cts a share and a special payout of two cts a share, which covers the period from November three, 1986, when the fund began operations, to December 31, 1986. The fund said its quarterly dividend rate may fluctuate in the future.  
IVACO SEES MINIMAL FIRST QUARTER EARNINGS. (Ivaco Inc) said price pressure on steel products, particularly in the U.S., and the recent increase in the value of the Canadian dollar is expected to result in "minimal" first quarter earnings. It said subsequent quarters should show substantial improvement from first quarter levels but 1987 earnings will not reach 1986 levels as long as those conditions continue. Ivaco earlier reported 1986 profit rose to 44.1 mln dlrs, after a one mln dlr extraordinary gain, from 35.1 mln dlrs the previous year. It said demand for the company's products are continuing at high levels and sales are expected to show further growth. Revenues last year rose to 1.94 billion dlrs from 1.34 billion dlrs in 1985.  
COLECO INDUSTRIES INC <CLO> 4TH QTR. Shr loss 6.48 DLS VS PROFIT 23 CTS Net loss 110.6 mln vs profit 4.1 mln Revs 74.0 mln vs 152.0 mln Year Shr loss 6.52 dlrs vs profit 3.87 dlrs net loss 111.2 mln vs profit 64.2 mln Revs 501.0 mln vs 776.0 mln  
NORTHERN TELECOM PROPOSES TWO-FOR-ONE STOCK SPLIT.  NORTHERN TELECOM PROPOSES TWO-FOR-ONE STOCK SPLIT  
COLECO INDUSTRIES <CLC> SEES PROFIT IN 1987. Coleco Industries Inc said it expects to return to profitability in 1987. Earlier, Coleco reported a net loss of 111.2 mln dlrs for the year ended December 31 compared to a profit of 64.2 mln dlrs in the year earlier. In a prepared statement, the company said the dramatic swing in operating results was due primarily to the steep decline in sales of Cabbage Patch Kids products from 600 mln dlrs to 230 mln dlrs. Coleco said it changed from a single product company to a more diversified organization through four major acquisitions last year. Products from the new acquisitions and other new product introductions are expected to enable it to return to profitability, it said. At the annual Toy Fair earlier this month, vice president Morton Handel said analysts' 1987 projected earnings of 90 cts a share on sales of 600 mln dlrs are reasonable.  
DAHLBERG INC <DAHL> 4TH QTR NET. Shr profit 10 cts vs loss seven cts Net profit 286,870 vs loss 156,124 Revs 10.0 mln vs 7,577,207 Year Shr profit five cts vs profit 42 cts Net profit 160,109 vs profit 906,034 Revs 38.1 mln vs 31.2 mln Avg shrs 2.9 mln vs 2.2 mln NOTE: 1986 year includes 53 weeks.  
CITY NATIONAL CORP <CTYN> RAISES DIVIDEND. Shr 16 cts vs 13 cts Pay April 15 Record March 31  
<PAGE PETROLEUM LTD> YEAR LOSS. Shr loss 1.98 dlrs vs loss 5.24 dlrs Net loss 23.3 mln vs loss 44.8 mln Revs 13.6 mln vs 29.6 mln Note: 1986 net includes nine mln dlr extraordinary loss for oil and gas writedowns and unrealized foreign exchange losses vs yr-ago loss of 32.5 mln dlrs.  
IDB COMMUNICATIONS GROUP INC <IDBX> YEAR NET. Period ended December 31. Shr 25 cts vs 20 cts Net 801,000 vs 703,000 Revs 6,318,000 vs 3,926,000  
ARMOR ALL PRODUCTS CORP <ARMR> QUARTERLY DIV. Qtly div ten cts vs ten cts Pay April 1 Record March 9  
CENERGY <CRG> REPORTS 4TH QTR NET PROFIT. Cenergy Corp reported fourth quarter net income of 790,000 dlrs or seven cts per share on revenues of 7.7 mln dlrs. For the year it reported a net loss of 6.5 mln dlrs or 70 cts per share as a result of writedowns in the book value of its oil and gas properties in the first two quarters. Revenues were 37 mln dlrs. Following the company's fiscal year ended March 31, 1985, it changed to a calender year end. For the nine months ended Dec 31, 1985, it reported a loss of 63.4 mln dlrs or 6.54 dlrs per share on revenues of 47.6 mln dlrs, which it said was a result of noncash writedowns of oil and gas properties. For the year ended March 31, 1985, Cenergy reported net income of 3,705,000 dlrs or 36 cts per share on revenues of 71 mln dlrs. The company said its reserves during the year fell to five mln barrels from 6.4 mln barrels of oil and to 60.1 bilion cubic feet of gas from 63.7 BCF. It said these reserves did not disappear but are available to produce as prices recover.  
NORTHERN TELECOM LTD <NT> DECLARES STOCK SPLIT. Two-for-one stock split Pay May 12 Note: split is subject to approval of shareholders at April 23 annual meeting. Company also said it will increase dividend on post-split shares to six cts from five cts.  
TORCHMARK <TMK> AUTHORIZES STOCK REPURCHASE. Torchmark Corp said its board authorized the purchase from time to time of a significant portion of its 7-3/4 pct convertible subordinated debentures. As of February 25, it said there were outstanding 150 mln dlrs of the principal amount of debenures. The company also said it plans to redeem the debentures on June eight. It also declared a regular quarterly dividend of 25 cts per share on its common payable May one to shareholders of record April 10.  
TECHAMERICA GROUP INC <TCH> 4TH QTR LOSS. Shr loss six cts vs not available Net loss 562,231 vs profit 10,253 Revs 8,871,874 vs 9,549,308 Year Shr loss 60 cts vs loss nine cts Net loss 5,058,145 vs loss 766,185 Revs 34.3 mln vs 35.5 mln  
WILFRED AMERICAN EDUCATIONAL <WAE> REGULAR DIV. Qtly div three cts vs three cts prior Pay April three Record March 13  
POTOMAC ELECTRIC POWER CO <POM> JANUARY NET. Oper shr 27 cts vs 29 cts Oper net 13.5 mln vs 14.6 mln Revs 104.6 mln vs 110.3 mln 12 mths Oper shr 4.10 dlrs vs 3.66 dlrs Oper net 205 mln vs 186.8 mln Revs 1.4 billion vs 1.3 billion NOTE: 1986 12 mths oper net excludes extraordinary gain of 21.7 mln dlrs or 46 cts per share from sale of Virginia service territory to Virginia Power.  
AFG INDUSTRIES INC <AFG> QUARTERLY DIVIDEND. Qtly div four cts vs four cts Pay April 3 Record March 23  
<GSW INC> YEAR NET. Oper shr 2.16 dlrs vs 2.07 dlrs Oper net 8,037,000 vs 7,710,000 Revs 136.4 mln vs 133.3 mln Note: 1986 net excludes extraordinary gain of 13 mln dlrs or 3.50 dlrs shr from sale of <Camco Inc> shares vs yr-ago loss of 4.3 mln dlrs or 1.14 dlrs shr.  
SANTA ANITA REALTY <SAR> QUARTERLY DIVIDEND. Qtly div 51 cts vs 51 cts Pay April 9 Record March 25 (Santa Anita Realty Enterprises Inc)  
LIQUID AIR CORP <LANA> QUARTERLY DIVIDEND. Qtly div 40 cts vs 40 cts Pay March 31 Record March 16  
(MARSHALL STEEL LTD) YEAR NET. Oper shr five cts vs 36 cts Oper net 508,000 vs 3,450,000 Revs 296.7 mln vs 298.0 mln Note: former name Marshall Drummond McCall Inc. Results include extraordinary gains of 952,000 dlrs or 11 cts per share in 1986 and 2,569,000 dlrs or 29 cts in 1985 from income tax reduction.  
MARSHALL STEEL DETAILS GAIN FROM UNIT SALE. (Marshall Steel Ltd), formerly Marshall Drummond McCall Inc, said it will report a 17 mln dlr net gain before taxes this year from the sale of its Drummond McCall division, which was sold effective January one.  
MAYFAIR INDUSTRIES INC <MAYF> 4TH QTR NET. Oper shr 21 cts vs 18 cts Oper net 659,000 vs 523,000 Revs 7,866,000 vs 5,503,000 Avg shrs 3,141,217 vs 2,925,294 12 mths Oper shr 70 cts vs 46 cts Oper net 2,075,000 vs 1,358,000 Revs 25.9 mln vs 19.3 mln Avg shrs 2,980,247 vs 2,925,294 Note: Excludes tax gain of 295,000 dlrs for qtr and year.  
ALATENN RESOURCES INC <ATNG> 4TH QTR NET. Shr 75 cts vs 52 cts Net 1,699,124 vs 1,177,786 Revs 45.6 mln vs 31.6 mln 12 mths Shr 2.22 dlrs vs 2.20 dlrs Net 5,057,292 vs 4,961,085 Revs 130.2 mln vs 126.7 mln  
<MEMOTEC DATA INC> YEAR NET. Shr 81 cts vs 66 cts Net 5,011,000 vs 2,314,000 Revs 57.3 mln vs 17.6 mln Note: results include extraordinary gains of 1,593,000 dlrs or 26 cts a share in 1986 and 451,000 dlrs or 13 cts a share in 1985.  
<GEORGE WESTON LTD> YEAR NET. Shr 2.31 dlrs vs 1.96 dlrs Net 119.0 mln vs 101.0 mln Revs 10.03 billion vs 8.88 billion  
MAIL BOXES ETC <MAIL> 3RD QTR JAN 31 NET. Shr 23 cts vs 18 cts Net 509,144 vs 277,834 Revs 2,258,341 vs 1,328,634 Avg shrs 2,177,553 vs 1,564,605 Nine mths Shr 55 cts vs 42 cts Net 1,150,633 vs 649,914 Revs 6,169,168 vs 3,178,115  
MUNSINGWEAR INC <MUN> 4TH QTR JAN 3 LOSS. Shr loss 32 cts vs loss seven cts Net loss 1,566,000 vs loss 292,000 Revs 39.4 mln vs 34.7 mln Year Shr profit 79 cts vs profit 74 cts Net profit 3,651,000 vs profit 3,020,000 Revs 147.9 mln vs 114.2 mln Avg shrs 4,639,000 vs 4,059,000 Note: Per shr adjusted for 3-for-2 stock split July 1986 and 2-for-1 split May 1985.  
GTI CORP <GTI> 4TH QTR OPER NET. Oper shr profit six cts vs loss two cts Oper net profit 225,000 vs loss 91,000 Revs 4,814,000 vs 3,339,000 Year Oper shr profit 12 cts vs loss two cts Oper net profit 415,000 vs loss 73,000 Revs 16.4 mln vs 16.9 mln Note: data does not include from discontinued operations, 4th qtr 1986 gain of 632,000 dlrs, or 19 cts per shr; 4th qtr 1985 loss of 250,000 dlrs, or seven cts per shr; 1986 year loss of 4,054,000 dlrs, or 1.17 dlrs per shr; and 1985 year loss of 606,000 dlrs, or 17 cts per shr.  
FAMOUS RESTAURANTS INC <FAMS> 4TH QTR LOSS. Shr loss 2.07 dlrs vs loss eight cts Net loss 11,445,000 vs loss 501,000 Revs 14.5 mln vs 11.0 mln Year Shr loss 1.91 dlrs vs profit four cts Net loss 12,427,000 vs profit 211,000 Revs 60.8 mln vs 51.5 mln Note: includes non-recurring charges of 12,131,000 dlrs in the 4th qtr and 12,500,000 dlrs in the year for reserve for underperforming restaurants.  
AVERY <AVY> SETS TWO FOR ONE STOCK SPLIT. Avery said its board authorizerd a two for one stock split, an increased in the quarterly dividend and plans to offer four mln shares of common stock. The company said the stock split is effective March 16 with a distribution of one additional share to each shareholder of record March 9. It said the quarterly cash dividend of 10.5 cts per share on the split shares, a 10.5 pct increase from the 19 cts per share before the split. Avery said it will register with the Securities and Exchange Commission shrortly to offer four mln additional common shares. It will use the proceeds to repay debt, finance recent acquisitions and for other corporate purposes.  
JAPAN'S NTT FORECASTS PROFITS FALL IN 1987/88. <Nippon Telegraph and Telephone Corp> (NTT) expects its profits to fall to 328 billion yen in the year ending March 31, 1988 from a projected 348 billion this year, the company said. Total sales for the same period are expected to rise to 5,506 billion yen from a projected 5,328 billion this year, NTT said in a business operations plan submitted to the Post and Telecommunications Ministry. NTT said it plans to make capital investments of 1,770 billion yen in 1987/88, including 109 billion for research and development, as against a total of 1,600 billion this year. An NTT spokesman said increased competition from new entrants to the telecommunications field and the effect of a sales tax scheduled to be introduced next January, were the major factors behind the projected decrease in profits. The Japanese telecommunications industry was deregulated in 1985.  
CHEUNG KONG (HOLDINGS) LTD <CKGH.HK> YEAR 1986. Shr 3.25 H.K. Dlrs vs 1.40 Final div 52 cents vs 38, making 75 cents vs 57 Net 1.28 billion dlrs vs 551.7 mln Note - Earnings excluded extraordinary gains of 983.6 mln dlrs vs 81.3 mln. Bonus issue one-for-four vs nil. Share split four-for-one. Dividend payable June 3, books close May 11-21.  
ESTIMATED DROP IN JAPAN CORPORATE PROFITS TRIMMED. The combined profits of Japan's major corporations, excluding financial institutions, are forecast to fall 19.2 pct in the 1986/87 year ending March 31, compared to the 19.9 pct decline projected in late November, Wako Research Institute of Economics said. The private research body also said in a statement that 437 of the 1,084 firms listed on the first section of the Tokyo Stock Exchange foresee an 11.6 pct fall in sales in the year against an 11.4 pct fall estimated last November. Current profits are projected to fall 4.4 pct in 1987/88 on sales seen increasing by 4.2 pct, it said. Rationalisation measures taken by manufacturing industries to cope with the yen's sharp rise are beginning to brighten their business outlook, the institute said. It said lower interest rates, which are expected to reduce corporate borrowing costs, are also behind the improved performance outlook. Earnings performance in the non-manufacturing sector will be supported by firm demand in the real estate and construction businesses, it said. The forecast was based on average exchange rate estimates of 160 yen to the dollar in 1986/87 and 155 yen in 1987/88.  
CARLTON COMMUNICATIONS OPTIMISTIC FOR 1987. <Carlton Communications Plc> has started the current financial year well, with accounts for the first four months showing a healthy increase on the same period last year, and Chairman M.P. Green told the annual meeting he looked forward to 1987 with optimism. The issue of 4.6 mln shares in ADR form had now been successfully completed, he added. Carlton intended to increase its presence in the U.S. Which represented 50 pct of the world television market. Conditions worldwide in the television industry continued to look buoyant, the Chairman noted.  
HUTCHISON SEES HIGHER PAYOUT, SATISFACTORY PROFITS. Hutchison Whampoa Ltd <HWHH.HK> expects satisfactory profits in 1987 and will pay a higher dividend for the year, chairman Li Ka-shing said. He did not make any specific projections for the company's earnings this year but he said the firm will pay a dividend of not less than 32.5 cents per share after a proposed four-for-one stock split and a one-for-four bonus issue. It paid total dividends of 1.30 dlrs per share last year, equal to 26 cents per share, adjusting for the bonus and share split. Hutchison, which has operations ranging from trading to property and container terminals, earlier reported after-tax profits of 1.62 billion dlrs against 1.19 billion dlrs in 1985. The 1986 total excluded extraordinary gains of 563 mln dlrs, partly from the sale of some of its stake in the South China Morning Post, the leading English language newspaper, compared with 369 mln dlrs the previous year. It said it expects another 277 mln dlr gain in 1987 from the sale of the remaining shares. Li said Hong Kong's property market remains strong while its economy is performing better than forecast with its largely export-led growth. Gross domestic product grew by nearly nine pct last year against an initial government projection of 4.5 pct. But he said Hong Kong's large trade deficit with the U.S. May result in protectionist measures that will adversely affect the British colony. He said all of the company's major operations showed improved results in 1986. Hutchison said earlier it will sell its entire 23.5 pct interest in Hongkong Electric Holdings Ltd <HKEH.HK> to <Cavendish International Holdings Ltd>, itself a spin-off from Hongkong Electric. Under a reorganisation announced separately, Hongkong Electric will spin off all its non-electricity related activities into Cavendish, which will be listed on the local stock exchange. Hongkong Electric shareholders will receive one share in Cavendish for every Hongkong Electric share. Cavendish will buy the 348.2 mln Hongkong Electric shares from Hutchison by issuing 975 mln new shares. The spin-off and the sale of Hongkong Electric shares will give Hutchison a 53 pct stake in Cavendish. Li said the decision to spin-off Cavendish is to relieve Hongkong Electric of public criticism of the power company for making risky investments. But he denied there was pressure from the government for the spin-off. He said Cavendish will have seven billion dlrs of assets and will be almost debt free, with 340 mln dlrs of liabilites. Its major assets are the Hong Kong Hilton Hotel, property development, and interests in Husky Oil Ltd <HYO.TO> of Canada and Pearson Plc <PSON.L> of Britain.  
BBC AG BROWN BOVERI UND CIE <BBCZ.Z> 1986 YEAR. Parent Company net profit 12.8 mln Swiss francs vs 7.5 mln. Orders received 2.21 billion francs vs 2.61 billion. Sales 2.25 billion francs vs 2.49 billion. Group sales 13.83 billion francs vs 13.88 billion. Group orders 11.03 billion francs vs 13.00 billion. REUTE  
BROWN BOVERI OMITS DIVIDEND, PLANS WARRANT BOND. BBC AG Brown Boveri und Cie <BBCZ.Z> said it will omit dividend in 1986 for the second consecutive year. It said it planned to invite shareholders and non-voting stockholders to subscribe to a warrant bond issue of around 150 mln Swiss francs to be made after the June 2 annual meeting. The value of the stock subscription rights should correspond roughly to the dividend of 30 francs per share paid in 1984. The company also plans to issue participation certificates with a par value of 70 mln Swiss francs, from which existing shareholders are excluded.  
<SDC SYDNEY DEVELOPMENT CORP> NINE MTHS LOSS. Period ended December 31, 1986 Oper shr loss 1.08 dlrs vs loss 84 cts Oper loss 7,700,000 vs loss 1,700,000 Revs 11,800,000 vs 9,800,000 Note: Current shr and net exclude extraordinary gain of 300,000 dlrs or five cts shr, versus extraordinary gain of 200,000 dlrs or four cts shr  
CHEUNG KONG CHAIRMAN SEES STRONG RESULTS IN 1987. Cheung Kong (Holdings) Ltd <CKGH.HK> is expecting strong results this year after reporting better than expected profits in 1986, chairman Li Ka-shing said. He did not give a specific earnings projection but he told reporters the firm will pay total dividends of not less than 19 cents a share this year after a one-for-four bonus issue and a four-for-one stock split. The company earlier declared total dividends equal to 15 cents a share for 1986, adjusting for the stock split and bonus issue. Cheung Kong's earnings rose to 1.28 billion H.K. Dlrs in 1986, well above market expectations of 920 mln to one billion dlrs. They compared with profits of 551.7 mln dlrs in 1985. Cheung Kong also reported extraordinary gains of 983.6 mln dlrs mainly from the firm's sale of the Hong Kong Hilton Hotel to Hongkong Electric Holdings Ltd <HKEH.HK> for one billion dlrs. It had gains of 81.3 mln dlrs in 1985. Li attributed the surge in 1986 earnings to a buoyant local property market and substantial increases in contributions from associated companies. "Looking ahead, 1987 should be another year of stability for the property market," Li said. "The growth in (Hong Kong's) exports is expected to stimulate the demand for industrial buildings." Cheung Kong is cash rich and is looking for new projects in the British colony, Li said, noting the firm is interested in a land reclamation project along the Hong Kong harbour and is exchanging views with the government on a proposal to build a second airport.  
WHITTAKER CORP 1ST QTR OPER SHR 17 CTS VS 25 CTS.  WHITTAKER CORP 1ST QTR OPER SHR 17 CTS VS 25 CTS  
WASTE MANAGEMENT CORP VOTES TWO FOR ONE STOCK SPLIT AND BOOSTS QTLY DIVIDEND TO 18 CTS.  WASTE MANAGEMENT CORP VOTES TWO FOR ONE STOCK SPLIT AND BOOSTS QTLY DIVIDEND TO 18 CTS  
TUESDAY MORNING INC <TUES> 4TH QTR NET. Shr 1.19 dlrs vs 1.46 dlrs Net 3,150,185 vs 2,665,284 Revs 27.9 mln vs 24.1 mln Avg shrs 2,653,646 vs 1,826,858 Year Shr 1.45 dlrs vs 1.37 dlrs Net 3,611,802 vs 2,502,443 Sales 62.2 mln vs 52.8 mln Avg shrs 2,489,978 vs 1,826,858  
WASTE MANAGEMENT <WMX> VOTES SPLIT, UPS PAYOUT. Waste Management Corp said its board voted a two-for-one stock split payable April 21, record March 30. In other action, Waste Management directors approved an increase in the quarterly dividend to 18 cts from 14 cts, payable April three, record March 18.  
POREX TECHNOLOGIES <PORX> SETS INITIAL DIVIDEND. Porex Technologies Corp said its board declared an initial annual dividend of 10 cts per share, its first payout, payable March 26 to holders of record March 12.  
DAVIS WATER <DWWS> DECLARES STOCK DIVIDEND. Davis Water and Waste Industries Inc said its board declared a 33-1/3 pct stock dividend, payable March 23 to holders of record March 12.  
MEDCO CONTAINMENT <MCCS> SETS INITIAL PAYOUT. Medco Containment Services Inc said its board declared an initial annual dividend of 10 cts per share, its first payout, payable March 19 to holders of record March 12.  
SDC SYDNEY COST REVIEW MAY ELIMINATE PRODUCTS. <SDC Sydney Development Corp>, earlier reporting an increased nine month operating loss, said a cost control review now underway may result in cost reduction and elimination of unprofitable and non-strategic products and services. The company's operating loss for the nine months ended December 31, 1986 increased to 7.7 mln dlrs from a loss of 1.7 mln dlrs in the prior year, it said earlier. Revenues increased by 20 pct to 11.8 mln dlrs from year-earlier 9.8 mln dlrs.  
<MULTI-STEP PRODUCTS INC> SIX MTHS DEC 31 LOSS. Shr loss 11 cts Loss 739,146 Revs 11,754,251 Note: initial public listing December, 1986  
WHITTAKER CORP <WKR> 1ST QTR JAN 31 NET. Oper shr 17 cts vs 25 cts Qtly div 15 cts vs 15 cts prior Oper net 1,522,000 vs 3,501,000 Sales 98.0 mln vs 86.3 mln NOTE: Prior year net excludes loss from discontinued operations of 1,817,000 dlrs. Company said common shares outstanding down significantly to 7,814,000, reflecting retirement of about 5,200,000 shares since start of restructurining in August 1986. Dividend pay April 30, record April 16.  
STOP AND SHOP COS INC <SHP> 4TH QTR JAN 31 NET. Oper shr 1.80 dlrs vs 1.46 dlrs Oper net 25.0 mln vs 20.2 mln Sales 1.09 billion vs 996.4 mln Avg shrs 13.9 mln vs 13.8 mln Year Oper shr 3.20 dlrs vs 2.57 dlrs Oper net 44.4 mln vs 35.4 mln Sales 3.87 billion vs 3.43 billion Avg shrs 13.9 mln vs 13.8 mln NOTES: Operating net excludes losses of 12.1 mln dlrs, or 87 cts a share, vs 321,000 dlrs, or two cts a share, in quarter and 6.0 mln dlrs, or 43 cts a share, vs 5.1 mln dlrs, or 37 cts a share, from discontinued operations. This includes provision in latest quarter of 12.2 mln dlrs for closing of Almys Department Store Co. Operating net in latest quarter and year includes 750,000 dlrs charge for restructuring announced in early January  
JIM WALTER CORP <JWC> REGULAR DIVIDEND. Qtly div 35 cts vs 35 cts in prior qtr Payable April one Record March 14  
WHITTAKER <WKR> TO HAVE GAINS FROM SALES. Whittaker Corp said it will have a gain on the sale of discontinued businesses after any operating losses from the businesses up until the dates of disposition, but it will defer reporting the gain until its restructuring program hsa been substantially completed. The company said in the first quarter ended January 31,m it completed the divestiture of its health maintenance organization operations to Travelers Corp <TIC> , sold its Whittar Steel Strip operations to <DofascoxInc> and sold its equity investment in Bertram-Trojan Inc to an affiliate of <Investcorp>. The company said it has entered into definitive agreements to sell Whittaker General Medical Corp, Bennes MArrel SA of France and Juster Steel Corp as well. The company said to date it has received proceeds of about 90 mln dlrs from divestitures and has used the funds to reduce debt incurred in the repurchase of its common shares. Whittaker today reported first quarter earnings from continuing operations fell to 1,522,000 dlrs from 3,501,000 dlrs a year before. The year-earlier figure excluded a 1,817,000 dlr loss from discontinued operations.  
<SAMSUNG CO> CALENDAR 1986. Div 50 won vs 50 won Net profit 6.91 billion won vs 6.10 billion Sales 4,275.4 billion vs 3,801,7 billion Note - Company has set 1987 sales target of 4,800 billion won.  
<DAEWOO CORP> CALENDAR 1986. Div 50 won vs 50 won Net profit 35.4 billion won vs 34.2 billion Sales 4,214.9 billion won vs 3,779.2 bilion Note - company has set 1987 sales target of 5,200 billion.  
WARWICK INSURANCE MANAGERS INC <WIMI> 4TH QTR. Oper shr 17 cts vs 19 cts Oper net 636,000 vs 358,000 Revs 10.6 mln vs 7,024,000 Avg shrs 3,808,000 vs 1,924,000 Year Oper shr 73 cts vs 65 cts Oper net 2,467,000 vs 1,199,000 Revs 31.5 mln vs 22.9 mln Avg shrs 3,372,000 vs 1,785,000 NOTE: Net excludes investment gains 20,000 dlrs vs 86,000 dlrs in quarter and 586,000 dlrs vs 195,000 dlrs in year. 1985 year net excludes 304,000 dlr tax credit. Share adjusted for one-for-two reverse split in November 1985.  
GELCO CORP 2ND QTR SHR 67 CTS VS 23 CTS.  GELCO CORP 2ND QTR SHR 67 CTS VS 23 CTS  
STROBER ORGANIZATION INC <STRB> 4TH QTR NET. Shr 22 cts vs 17 cts Net 1,232,000 vs 834,000 Sales 24.1 mln vs 20.9 mln Avg shrs 5,609,000 vs five mln Year Shr 97 cts vs 69 cts Net 4,985,000 vs 3,426,000 Sales 92.4 mln vs 77.9 mln Avg shrs 5,153,000 vs five mln  
BRENCO INC <BREN> DECLARES QTLY DIVIDEND. Qtly div three cts vs three cts prior Pay April six Record March 20  
MASSACHUSETTS INVESTORS GROWTH STOCK FUND PAYOUT. Qtly div from income 5.1 cts vs 3.035 dlrs in prior qtr including capital gains of 2.978 dlrs Payable March 27 Record February 27  
<PREMDOR INC> 4TH QTR NET. Shr 35 cts vs 25 cts Net 1,590,000 vs 1,140,000 Revs 32.2 mln vs 23.0 mln YEAR Shr 1.16 dlrs vs 68 cts Net 5,300,000 vs 3,100,000 Revs 110.0 mln vs 85.4 mln  
MFS MANAGED SECTORS TRUST DIVIDEND INCREASED. Semi-annual div from income of 7.3 cts vs 1.0 cent in prior period Payable March 27 Record February 27  
STONE <STO> SPLITS STOCK, RAISES PAYOUT. Stone Container Corp said it is splitting its common stock 2-for-1 and increasing its dividend 33-1/3 pct. The dividend of 20 cts a share, an increase of five cts over the prior 15 cts a share on pre-split shares, is payable June 12 to holders of record May 22. The stock split also is payable June 12 to holders of record May 22.  
S-K-I LTD <SKII> 2ND QTR JAN 25 NET. Shr 81 cts vs 57 cts Net 3,660,273 vs 2,437,914 Rev 28.5 mln vs 23.1 mln Six months Shr 29 cts vs 12 cts Net 1,325,755 vs 483,559 Rev 31.7 mln vs 26.4 mln  
KAPOK CORP <KPK> YEAR SEPT 30 LOSS. Shr loss 20 cts vs profit 96 cts Net loss 499,000 vs profit 2,369,000 Revs 11.5 mln vs 10.3 mln NOTE: Prior year net includes gain on sale of property of 4,557,000 dlrs.  
K-TRON INTERNATIONAL INC <KTII> 4TH QTR NET. Oper shr profit 36 cts vs loss 1.48 dlrs Oper net profit 1,353,000 vs loss 5,551,000 Revs 11.3 mln vs 8,142,000 Year Oper shr profit 31 cts vs loss 1.58 dlrs Oper net profit 1,165,000 vs loss 5,919,000 Revs 38.0 mln vs 31.6 mln NOTE: Net includes pretax unusual gain 64,000 dlrs vs loss 4,744,000 dlrs in quarter and losses 3,0077,000 dlrs vs 4,744,000 dlrs in year.  1986 items include settlement of patent suit and provision for investment writeoff and 1985 item provision for loss on sale of scale business. 1986 net both periods excludes 400,000 dlr tax credit.  
PRESIDENTIAL REALTY CORP <PDO> ANNUAL NET. Shr 1.65 dlrs vs 1.50 dlrs Net 5,370,000 vs 4,901,000 Rev 8.4 mln vs 7.8 mln NOTE: 1986 net gain from property investments 717,000 dlrs, or 22 cts per share, vs 721,000 dlrs, or 22 cts per share.  
<FRANKLIN GOLD FUND> CUTS DIVIDEND. Semi div 13 cts vs 18 cts prior Pay March 13 Record March Two  
<FRANKLIN CALIFORNIA TAX-FREE INCOME FUND>PAYOUT. Mthly div 4.5 cts vs 4.5 cts prior Pay March 13 Record March Two  
<FRANKLIN AGE HIGH INCOME FUND> SETS PAYOUT. Mthly div 3.6 cts vs 3.6 cts prior Pay March 13 Record March Two  
<FRANKLIN FEDERAL TAX-FREE INCOME FUND> PAYOUT. Mthly div 7.7 cts vs 7.7 cts prior Pay March 13 Record March Two  
<FRANKLIN NEW YORK TAX-FREE INCOME FUND> PAYOUT. Mthly div 7.3 cts vs 7.3 cts prior Pay March 13 Record March Two  
<FRANKLIN U.S. GOVERNMENT SECURITIES FUND>PAYOUT. Mthly div six cts vs six cts prior Pay March 13 Record March Two  
FIRST MISSISSIPPI CORP <FRM> SETS PAYOUT. Qtly div six cts vs six cts prior Pay April 28 Record March 31  
JIM WALTER CORP <JWC> SETS PAYOUT. Qtly div 35 cts vs 35 cts prior Pay April One Record March 14  
JAPAN'S NTT FORECASTS PROFITS FALL IN 1987/88. <Nippon Telegraph and Telephone Corp> (NTT) expects its profits to fall to 328 billion yen in the year ending March 31, 1988 from a projected 348 billion this year, the company said. Total sales for the same period are expected to rise to 5,506 billion yen from a projected 5,328 billion this year, NTT said in a business operations plan submitted to the Post and Telecommunications Ministry. NTT said it plans to make capital investments of 1,770 billion yen in 1987/88, including 109 billion for research and development, as against a total of 1,600 billion this year.  
DURO-TEST CORP <DUR> 2ND QTR JAN 31 NET. Shr 10 cts vs 14 cts Net 531,896 vs 727,781 Revs 16.0 mln 16.8 mln Six mths Shr 30 cts vs 39 cts Net 1,532,431 vs 2,000,732 Revs 32.7 mln vs 34.5 mln  
<FRANKLIN UTILITIES FUND> SETS PAYOUT. Qtly div 14 cts vs 14 cts prior Pay March 13 Record March Two  
GELCO CORP <GEL> 2ND QTR JAN 31 NET. Shr 67 cts vs 23 cts Net 5,220,000 vs 3,143,000 Revs 236.1 mln vs 256.2 mln Avg shrs 7.8 mln vs 13.7 mln Six Mths Shr 85 cts vs 59 cs Net 8,919,000 vs 8,158,000 Revs 483.8 mln vs 515.5 mln Avg shrs 10.4 mln vs 13.7 mln NOTE: Fiscal 1987 second quarter and first half earnings include a gain of 3.4 mln dlrs and exclude preferred dividend requirements of five mln dlrs in the quarter and 5.6 mln dlrs in the first half. Fiscal 1986 net reduced by currency losses equal to six cts a share in the second quarter and equal to nine cts in the six months.  
INTERNCHANGE FINANCIAL SERVICES <ISBJ> PAYOUT UP. Qtly div 10 cts vs 8-1/3 cts prior Pay April 21 Record March 20 NOTE: Interchange Financial Services Corp.  
NEWPORT CORP <NESP> 2ND QTR JAN 31 NET. Shr 11 cts vs 13 cts Net 1,037,690 vs 1,270,460 Sales 10.1 mln vs 9,215,836 Six Mths Shr 25 cts vs 31 cts Net 2,319,376 vs 2,930,507 Sales 21.2 mln vs 18.9 mln  
KAPOK CORP <KPK> 1ST QTR DEC 31 LOSS. Shr loss 14 cts vs loss 21 cts Net loss 353,000 vs loss 541,000 Revs 2,668,000 vs 2,525,000 Avg shrs 2,452,3000 vs 2,552,300  
PREFERRED HEALTHCARE LTD <PHCC> 4TH QTR NET. Shr six cts vs four cts Net 383,189 vs 241,857 Revs 1,506,756 vs 793,459 12 mths Shr 24 cts vs 15 cts Net 1,520,797 vs 929,017 Revs 5,268,486 vs 2,617,995  
TRANZONIC COS <TNZ> SETS QUARTERLY. Qtly div 11 cts vs 11 cts prior Pay April 17 Record March 20  
CRONUS INDUSTRIES INC <CRNS> 4TH QTR LOSS. Oper Shr loss 40 cts vs loss 10 cts Oper net loss 2,136,000 vs loss 467,000 Revs 21.9 mln vs 12.9 mln 12 mths Oper shr loss 63 cts vs loss 30 cts Oper net loss 3,499,000 vs loss 1,756,000 Revs 82.0 mln vs 54.5 mln NOTE: Excludes income from discontinued operations of 1,478,000 vs 952,000 for qtr, and 31.2 mln vs 6,500,000 for year. Excludes extraordinary charge of 2,503,000 for current qtr, and 4,744,000 for year.  
MERCURY ENTERTAINMENT CORP <MCRY> YEAR NOV 30. Shr loss four cts vs loss one ct Net loss 413,021 vs loss 163,932 Revs 600,971 vs 665,800  
BENGUET CORP <BE> CALENDAR 1986. Net income 154.7 mln pesos vs 127.5 mln Operating revenues 4.42 billion vs 3.3 billion Operating profit 621.2 mln vs 203.4 mln Earnings per share 4.80 vs 3.95 NOTE: Company statement said gold operations contributed 74 pct of consolidated earnings.  
I.M.S. INTERNATIONAL INC <IMSI> SETS QUARTERLY. Qtly div four cts vs four cts prior Pay March 27 Record March 13  
MUTUAL OF OMAHA INTEREST SHARES <MUO> QTLY DIV. Qtly div 36 cts vs 36 cts prior Pay April one Record March 13  
MERCURY ENTERTAINMENT <MCRY> SEES BETTER RESULTS. Mercury Entertainment Corp said it expects improved results in 1987. The company today reported a loss for the year ended November 30 of 413,021 dlrs on revenues of 600,971 dlrs, compared with a loss of 163,932 dlrs on revenues of 665,800 dlrs a year before.  
UNISYS CORP <UIS> SETS QUARTERLY. Qtly div 65 cts vs 65 cts prior Pay May Seven Record April Seven  
JACOBSON <JCBS> VOTES SPLIT, INCREASES PAYOUT. Jacobson Stores Inc said its board voted a three-for-two stock split, payble March 30, record March 13. In other action, Jacobson's directors approved an increase in its quarterly dividend to 11 cts on a post split basis payable April 14, record March 30. The new dividend rate represents a 32 pct increase over the 12-1/2 cts paid quarterly on a pre-split basis.  
HARLEY-DAVIDSON INC <HDI> 4TH QTR NET. Oper shr 18 cts vs 51 cts Oper net 1,048,000 vs 1,870,000 Revs 72.2 mln vs 73.5 mln Avg shrs 5,910,000 vs 3,680,000 Year Oper shr 82 cts vs 72 cts Oper net 4,307,000 vs 2,637,000 Revs 295.3 mln vs 287.5 mln Avg shrs 5,235,000 vs 3,680,000 NOTE: Results exclude one-time gains of 223,000 or four cts and 564,000 or 11 cts for 1986 qtr and year vs gains of 6,359,000 or 1.73 dlrs and 7,318,000 or 1.99 dlrs for prior periods.  
MORSE SHOE INC <MRS> 4TH QTR NET. Shr 59 cts vs 48 cts Net 3,244,000 vs 2,584,000 Revs 169.3 mln vs 156.0 mln 12 mths Shr 1.78 dlrs vs 1.32 dlrs Net 9,733,000 vs 7,164,000 Revs 585.6 mln vs 541.0  
CONGRESS VIDEO GROUP INC <CVGI> 3RD QTR NET. Qtr ends Dec 31 Shr profit three cts vs loss three cts Net profit 129,000 vs loss 85,000 Revs 4,001,000 vs 4,347,000 Avg shrs 3,994,347 vs 3,769,347 Nine mths Shr loss 75 cts vs profit 39 cts Net loss 2,900,000 vs profit 1,753,000 Revs 7,472,000 vs 15.3 mln Avg shrs 3,845,438 vs 4,470,275 NOTE: net 1986 includes tax gain carryforward from discontinued operations of Master's Merchandise Group in year prior.  
THUNANDER CORP <THDR> YEAR NET. Shr 73 cts vs 58 cts Net 1,101,000 vs 901,000 Sales 32.9 mln vs 29.1 mln Note: Results include operations of BMD of New England Inc, acquired Sept. 1, 1986.  
FINAL TRUST FOR THRIFT INSTITUTIONS PAYOUT SET. <Massachusetts Financial Services Co> said it has set the final income and capital gain distributions for <Trust for Thrift Institutions High Yield Series> of 1.069 dlrs and 7.645 dlrs, respectively, payable today.  
ROSPATCH TO RESPOND TO DIAGNOSTIC BID.  ROSPATCH TO RESPOND TO DIAGNOSTIC BID  
FRANKLIN INSURED TAX-FREE SETS PAYOUT. Mthly div 7.1 cts vs 7.1 cts prior Pay March 31 Record March 16 NOTE: Franklin Insured Tax-Free Income Fund.  
FRANKLIN MINNESOTA INSURED SETS PAYOUT. Mthly div 6.6 cts vs 6.6 cts prior Pay March 31 Record March 16 NOTE: Franklin Minneosta Insured Tax-Free Income Fund.  
FRANKLIN MICHIGAN INSURED SETS PAYOUT. Mthly div 6.9 cts vs 6.9 cts prior Pay March 31 Record March 16 NOTE: Franklin Michigan Insured Tax-Free Income Fund.  
FRANKLIN MASSACHUSETTS INSURED CUTS PAYOUT. Mthly div 6.5 cts vs 6.8 cts prior Pay March 31 Record March 16 NOTE: Franklin Massachusetts Insured Tax-Free Income Fund.  
FRANKLIN CALIFORNIA TAX-FREE SETS PAYOUT. Mthly div 6.5 cts vs 6.5 cts prior Pay March 31 Record March 16 NOTE: Franklin California Insured Tax-Free Income Fund.  
DIAGNOSTIC PRODUCTS <DPCZ> SEES EARNINGS GROWTH. Diagnostic Products Corp president and chief executive officer Sigi Ziering said he expects to maintain the same compound average annal net income growth in 1987 as the company has for the past five years. "We expect the same performance in net income over the next five years as we have had in the past," Ziering said. Over the past five years Ziering said the company has had average compound net income growth of 32 pct annually with a 27 pct per year growth in earnings per share. For 1986 the company had net income of 6.3 mln dlrs, or 1.07 dlrs per share, vs 3.9 mln dlrs, or 73 cts per share in 1985. Diagnostic manufactures medical immunological diagnostic test kits. Ziering said he expects the earnings growth to result from positive effect of the weaker dollar on the company's exports sales as well as accelerated market penetration. Ziering said he expected the Food and Drug Administration to approve three more of its drug abuse test kits by the end of the year, which, depending on approval, should also help earnings growth. Ziering said as a result of the new tax laws he expected the company's taxes to decrease by five pct to 31 pct of net income in 1987.  
DUNKIN' DONUTS INC <DUNK> 1ST QTR JAN 24 NET. Shr 46 cts vs 42 cts Net 3,418,000 vs 3,129,000 Revs 24.7 mln vs 26.2 mln  
CCR VIDEO CORP <CCCR> 1ST QTR NOV 30 NET. Shr profit two cts vs loss 12 cts Net profit 156,726 vs loss 776,000 Revs 1,157,883 vs 890,138  
FRANKLIN PUERTO RICO TAX-FREE SETS PAYOUT. Mthly div 7.1 cts vs 7.1 cts prior Pay March 31 Record March 16 NOTE: Franklin Puerto Rico Tax-Free Income Fund.  
FRANKLIN OHIO INSURED TAX-FREE SETS PAYOUT. Mthly div 6.1 cts vs 6.1 cts prior Pay March 31 Record March 16 NOTE: Franklin Ohio Insured Tax-Free Income Fund.  
FRANKLIN HIGH-YIELD TAX-FREE SETS PAYOUT. Mthly div 7.1 cts vs 7.1 cts prior Pay March 31 Record March 16 NOTE: Franklin High-Yield Insured Tax-Free Income Fund.  
GREEN TREE ACCEPTANCE INC <GNT> SETS DIVIDEND. Qtly dividend 12-1/2 cts vs 12-1/2 cts Pay March 31 Record March 16  
UP-RIGHT INC <UPRI> 4TH QTR OPER NET. Oper shr five cts vs 29 cts Oper net 151,000 vs 867,000 Revs 12.7 mln vs 14.1 mln Year Oper shr 87 cts vs 52 cts Oper net 2,650,000 vs 1,565,000 Revs 54.7 mln vs 49.1 mln Note: oper data does not include 4th qtr 1986 extraordinary credit of 14,000 dlrs or 4th qtr 1985 extraordinary loss of 139,000 dlrs, or five cts per shr. For year, does not include extraordinary credit of 92,000 dlrs, or three cts per shr, in 1986 and 161,000 dlrs, or five cts per shr, in 1985.  
ALBERTSON'S INC <ABS> RAISES QTLY DIVIDEND. Shr 24 cts vs 21 cts Pay May 25 Record May eight  
U.S. INTEC INC <INTK> 4TH QTR NET. Shr six cts vs five cts Net 188,000 vs 130,000 Revs 12.2 mln vs 10.1 mln Avg shrs 3,029,930 vs 2,764,544 12 mths Shr 81 cts vs 1.45 dlrs Net 2,463,000 vs 3,718,000 Revs 52.4 mln vs 47.5 mln Avg shrs 3,029,930 vs 2,566,680 NOTE: net for 1985 includes 500,000, or 20 cts per share, for proceeds of a life insurance policy. includes tax benefit for prior qtr of approximately 150,000 of which 140,000 relates to a lower effective tax rate based on operating results for the year as a whole.  
INT'L HYDRON CORP <HYD> 4TH QTR OPER NET. Oper shr profit six cts vs loss 20 cts Oper net profit 734,000 vs loss 2,312,000 Revs 16.8 mln vs 13.9 mln Year Oper shr profit 30 cts vs profit three cts Oper net profit 3,342,0000 vs profit 318,000 Revs 67.5 mln vs 52.6 mln NOTE: Excludes loss of 41,000 dlrs or nil vs gain 7,000 dlrs or nil in qtr and gain 247,000 dlrs or two cts vs gain 88,000 dlrs or one ct in year from net operating loss carryforwards.  
SYNTECH INTERENATIONAL INC <SYNE> 4TH QTR NET. Shr profit six cts vs loss 4.51 dlrs Net profit 815,167 vs loss 12,955,562 Revs 7,981,022 vs 2,954,488 Year Shr profit 16 cts vs loss 7.22 dlrs Net profit 2,446,100 vs loss 19,175,931 Revs 23.6 mln vs 14.6 mln  
COEUR D'ALENE MINES CORP <COUR> 4TH QTR LOSS. Shr loss 18 cts vs loss one ct Net loss 1,343,000 vs loss 49,000 Revs 6,778,000 vs 1,976,000 Year Shr loss 67 cts vs loss ten cts Net loss 4,693,000 vs loss 672,000 Revs 14.0 mln vs 7,034,000 Note: 1986 loss included one-time loss of 3,624,000 dlrs on write-off of certain silver, oil and gas interests.  
GELCO <GEL> SEES FLAT 1987 PRETAX OPERATING NET. Gelco Corp said that, excluding the effects of a restructuring plan, it expects pre-tax operating earnings for the year to end July 31, 1987, to be about the same as those of last year. For the year ended July 31, 1986, Gelco reported pre-tax operating earnings of 14.8 mln dlrs, or 1.08 dlrs a share. However, final results will be affected by certain charges including legal and investment advisors fees, preferred stock dividends and other costs of restructuring, it said. Expenses associated with restructuring are expected to be offset by "significant" gains from the sale of some of Gelco's business units, it said. The final outcome for the fiscal year will be determined by the timing and proceeds from the sale, it added.  
GLAMIS GOLD LTD <GLGVF> SIX MTHS DEC 31 NET. Shr 16 cts vs 22 cts Net 1,226,597 vs 1,327,016 Revs 6,598,580 vs 5,921,828  
LITTLE PRINCE PRODUCTIONS LTD<LTLP>1ST QTR LOSS. Qtr ended Dec 31 Shr profit nil vs loss nil Net profit 858 vs loss 3,957 Revs 7,372 vs 1,500  
WHITEHALL CORP <WHT> 4TH QTR NET. Shr 15 cts vs 55 cts Net 557,000 vs 2,020,000 Revs 8,872,000 vs 13,908,000 Year Shr 60 cts vs 2.52 dlrs Net 2,198,000 vs 9,313,000 Revs 36.9 mln vs 55.7 mln  
SERVICE CORP INTERNATIONAL <SRV> 3RD QTR NET. Qtr ended Jan 31 Shr 33 cts vs 29 cts Net 14.8 mln vs 11 mln Revs 108.6 mln vs 70.0 mln Avg shrs 45.2 mln vs 37.6 mln Nine mths Shr 88 cts vs 76 cts Net 36.7 mln vs 28.7 mln Revs 260.4 mln vs 193.0 mln Avg shrs 41.9 mln vs 37.8 mln Note: Net for nine mths includes gains from dispositions of 1,783,000 dlrs or four cts a share vs 900,000 dlrs or two cts a share. Avg shrs and shr data restated to reflect three-for-two stock split in January.  
PEOPLES BANCORPORATION <PEOP> QUARTERLY DIVIDEND. Qtly div 25 cts vs 25 cts Pay April 24 Record March 31  
CPL REIT <CNTRS> 4TH QTR NET. Shr 24 cts Net 412,737 Revs 605,321 Year Shr 93 cts Net 1,577,892 Revs 2,345,261 NOTE: Full name CPL Real Estate Investment Trust. Company was formed Dec 30, 1985.  
REPUBLIC AUTOMOTIVE PARTS <RAUT> 4TH QTR LOSS. Shr loss 85 cts vs loss 88 cts Net loss 2,410,000 vs loss 2,466,0000 Revs 24.0 mln vs 23.9 mln Year Shr loss 1.18 dlrs vs loss 81 cts Net loss 3,338,000 vs loss 2,275,000 Revs 101.4 mln vs 112.3 mln  
REALMERICA CO <RACO> YEAR NOV 30 NET. Shr profit four cts vs loss 16 cts Net profit 155,383 vs loss 577,336 Note: Net includes tax credit of 51,226 dlrs or one ct per share.  
S-K-I LTD <SKII> 2ND QTR JAN 25 NET. Shr 81 cts vs 57 cts Net 3,660,273 vs 2,437,914 Revs 28.5 mln vs 23.1 mln Six mths Shr 29 cts vs 12 cts Net 1,325,755 vs 483,559 Revs 31.7 mln vs 26.4 mln  
MFS MANAGED MUNCIPAL BOND TRUST SETS PAYOUT. <MFS Managed Muncipal Trust Bond> said it declared a monthly payout income distribution of 5.7 cts a share compared with 5.6 cts for the previous month. It said the distribution is payable March 20 to shareholders of record March two.  
MFS MUNICIPAL INCOME TRUST <MFM> SETS PAYOUT. MFS Municipal Income Trust said it declared a monthly income distribution of 5.7 cts a share compared with 5.5 cts a share paid in the previous month. It said the distribution is payable March 27 to shareholders of record March 13.  
PITTWAY CORP <PRY> 4TH QTR NET. Shr 1.35 dlrs vs two dlrs Net 6,195,000 vs 9,202,000 Sales 157.5 mln vs 151.6 mln Year Shr 6.02 dlrs vs 6.78 dlrs Net 27,608,000 vs 31,117,000 Sales 585.7 mln vs 541.3 mln  
PETROLITE CORP <PLIT> SETS PAYOUT. Qtly dividend 28 cts vs 28 cts Pay April 24 Record April 10  
BASIX CORP <BAS> 4TH QTR LOSS. Oper shr loss eight cts vs profit 20 cts Oper net loss 768,000 vs profit 1,962,000 Revs 49.0 mln vs 43.6 mln 12 mths Oper shr loss 1.41 dlrs vs profit 96 cts Oper net loss 13.6 mln vs profit 9,305,000 Revs 175.3 mln vs 140.7 mln Note: Oper excludes loss from discontinued operations of 4,676,000 dlrs or 48 cts a share for year-ago qtr and 7,571,000 dlrs or 78 cts a share for year-ago 12 mths. Oper includes charge of 1.1 mln dlrs for cumulative effect of repeal of the investment tax credit for qtr and writedown of 21.6 mln dlrs on gas and oil facilities for 12 mths. Year-ago shr data restated to reflect two pct stock dividend of December 1986.  
TELECREDIT INC <TCRD> 3RD QTR JAN 31 NET. Shr 32 cts vs 22 cts Net 3,454,000 vs 2,224,000 Revs 33.2 mln vs 28.1 mln Nine mths Shr 64 cts vs 38 cts Net 6,935,000 vs 3,877,000 Revs 86.8 mln vs 70.9 mln  
LASER PRECISION CORP <LASR> 4TH QTR NET. Shr profit 14 cts vs profit two cts Net profit 452,723 vs profit 50,581 Revs 5,065,543 vs 2,898,363 Year Shr profit 45 cts vs loss 15 cts Net profit 1,276,472 vs loss 340,081 Revs 16.0 mln vs 9,304,466  
ITT'S <ITT> HARTFORD UNIT POSTS 4TH QTR GAIN. Hartford Insurance Group, a unit of New York-based ITT Corp, said higher worldwide premiums help boost net income for the 1986 fourth quarter to 88.6 mln dlrs, from net income of 36.7 mln dlrs for the 1985 quarter. For the full year, Hartford said it earned 329 mln dlrs, up from 151.4 mln dlrs in 1985. Hartford said results for the year were aided by a gain of 46.5 mln dlrs on the sale of its remaining 52 pct stake in Abbey Life Group PLC. For 1985, the company posted a gain of 14.3 mln dlrs on the sale of 48 pct of Abbey Life. Hartford said total property-casualty and life-health written premiums rose 25 pct in 1986, to eight billion dlrs, from 6.4 billion dlrs in 1985.  
DALLAS CORP <DLS> 4TH QTR LOSS. Oper shr loss 22 cts vs profit 10 cts Oper net loss 1,626,000 vs pofit 702,000 Revs 98.3 mln vs 105.1 mln 12 mths Oper shr profit 18 cts vs profit 82 cts Oper net profit 1,293,000 vs profit 5,940,000 Revs 396.2 mln vs 396.7 mln Note: Oper net excludes loss from discontinued operations of 2,112,000 dlrs or 39 cts a share for year-ago qtr and 2,036,000 dlrs or 1.10 dlrs a share for year-ago 12 mths.  
DILLARD DEPARTMENT STORES INC <DDS> 4TH QTR NET. Qtr ended Jan 31 Shr 1.16 dlrs vs 1.15 dlrs Net 32.4 mln vs 33.5 mln Revs 629.0 mln vs 538.6 mln Avg shrs 32.1 mln vs 29.2 mln 12 mths Shr 2.35 dlrs vs 2.29 dlrs Net 74.5 mln vs 66.9 mln Revs 1.85 billion vs 1.60 billion Avg shrs 31.7 mln vs 29.2 mln Note: Shr/avg shrs data show 2-for-1 split in Nov. 1985.  
KENTUCKY CENTRAL LIFE <KENCA> SETS PAYOUT. Kentucky Central Life Insurance Co said it declared a semi-annual dividend of 55 cts per share, payable March 31 to shareholders or record March 19. The dividend is equal to the company's previous semi-annual payout.  
BANK OF NEW ENGLAND CORP <BKNE> QTLY DIVIDEND. Qtly div 28 cts vs 28 cts prior Pay April 20 Record March 31  
FORD <F> EUROPE EARNINGS UP 71 PCT LAST YEAR. Ford Europe's net earnings soared by 71 per cent last year to 559 mln dlrs, Kenneth Whipple, chairman of Ford Europe, said. Whipple, here to attend the Geneva Auto Show which opens on Thursday, said that the Ford Motor Co unit had sold a record 1.5 million vehicles in Europe in 1986. Net earnings were 326 mln dlrs in 1985. Sales in 1986 represented 11.8 per cent of the European market share, Whipple said. Ford will invest 1.2 billion dollars in Europe in 1987, and a total of seven billion over the next seven years, he added.  
CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln.  CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln  
CRA LTD <CRAA.S> 1986 NET. Net 138.20 mln dlrs vs 87.80 mln. Shr 24.8 cents vs 17.8 Final div to announced after July 1, vs final 10 cents making 15. Sales revenue 4.81 billion vs 4.69 billion Investment income 116.93 mln vs 60.61 mln Shrs 494.35 mln vs 494.22 mln. NOTE - Net is after tax 171.03 mln dlrs vs 188.52 mln, interest 337.39 mln vs 308.68 mln, depreciation 352.32 mln vs 333.05 mln but before net extraordinary loss 250.28 mln vs profit 28.03 mln.  
comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln.  comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln  
COMALCO LTD <CMAC.S> 1986 NET. Net profit 57.1 mln dlrs vs loss 69.1 mln. Net is equity accounted Pre-equity accounted net 39.90 mln dlrs vs loss 49.11 mln Pre-equity shr profit 7.1 cents vs loss 8.7 Final div to be announced after July 1 vs first and final 1.0 cent. Sales 1.88 billion vs 1.78 billion Other income 52.75 mln vs 15.22 mln Shrs 560.61 mln vs same. NOTE - Net is after tax paid 46.85 mln dlrs vs credit 5.02 mln, interest 127.68 mln vs 117.19 mln, depreciation 109.29 mln vs 100.73 mln and minorities 1.50 mln vs loss 331,000. But net is before net extraordinary loss 140.5 mln vs nil. Extraordinaries comprise exchange losses 102.9 mln, provision for Goldendale smelter closure costs 27.3 mln and increase in future tax provision 10.3 mln.  
FISONS PLC <FISN.L> YEAR TO END-1986. Shr 27.5p vs 24.3p Div 3.95p vs 3.34p making 6.5p vs 5.5p Pre-tax profit 85.1 mln stg vs 72.3 mln Turnover 702.6 mln vs 646.7 mln Tax 18.4 mln vs 15.2 mln Finance charges 4.1 mln vs 5.4 mln Minority interest 0.1 mln vs 0.5 mln Extraordinary debit, being closure and restructuring costs 4.9 mln vs 3.7 mln Operating profit includes - Pharmaceutical 49.8 mln vs 39.0 mln Scientific equipment 23.2 mln vs 19.2 mln Horticulture 8.0 mln vs 8.7 mln Note - company said it plans one-for-one capitalisation  
STC PLC <STCL.L> YEAR TO END-1986. Shr profit 15.9p vs 2.25p loss Div 3p making 4.5p vs nil Turnover 1.93 billion stg vs 1.99 billion Pretax profit 134.2 mln vs 11.4 mln loss Tax 47.2 mln vs nil Operating profit 163.0 mln vs 92.7 mln Interest less investment income 13.8 mln vs 37.2 mln Exceptional debit 15.0 mln vs 66.9 mln Minorities 0.3 mln vs 0.4 mln Extraordinary credit 16.4 mln vs 42.0 mln debit Operating profit includes - International computers 90.2 mln vs 61.7 mln Communications systems 56.1 mln vs 48.7 mln Components and distribution 20.0 mln vs 1.5 mln Defence 9.4 mln vs 13.1 mln  
CRA EXPECTS TO PAY FINAL DIVIDEND OF 10 CENTS. CRA Ltd <CRAA.S> said it expected to pay a final 1986 dividend of not less than 10 cents a share after July 1, making 13 cents forthe year against 15 in 1985. The mining and smelting group earlier reported 1986 net earnings rose to 138.2 mln dlrs from 87.8 mln in 1985, against analysts' forecasts yesterday of 125 mln to160 mln. CRA said it was deferring consideration of a dividend until later this year to provide the benefit of dividend imputation to its shareholders. After July 1, dividends will be tax-free to shareholders provided they come out of earnings on which the full 49 pct company tax rate has been pid. The company operates on a substituted tax year, not the fiscal year ending June 30, and as a result has incurred tax at the 49 pct rate on 1986 earnings, CRA said in a statement. Consequently, it has funds available for distribution with dividend imputed but is waiting to see the imputation legislation before determining the final payout, it said. Despite the higher net earnings, CRA said 1986 was a poor year for the minerals industry, with the notable exception of gold producers. Prices for major metals expressed in real U.S. Dollars declined to the lowest levels in about 50 years, it said. Fluctuating exchange and interest rates added volatility and uncertainty, while the revaluation of the yen is leading to substantial restructuring of Japanese industry, CRA said. World demand for metals is growing slowly. Inventories have steadily declined, with supply and demand in better balance, but overcapacity continues, CRA said. Turning to contributions to its earnings, CRA said Bougainville Copper Ltd <BUVA.S> contributed 31.3 mln dlrs while its share of Comalco Ltd's <CMAC.S> net was 37.8 mln. Net earnings from iron-ore operations were 111.8 mln dlrs against 149.2 mln in 1985, it said. Lead, zinc and silver mining and smelting operations incurred a net loss of 66.8 mln dlrs against a 38.1 mln loss in 1985, CRA said. Coal activities resulted in a net profit of 36.7 mln dlrs against 34.1 mln, while salt raised its contribution to 4.7 mln from 2.8 mln. CRA's share of earnings from the Argyle diamond project amounted to 12.0 mln dlrs against nine mln in 1985. CRA said the main item in its 250.28 mln dlr extraordinary loss was a 172.9 mln writeoff of unrealised foreign exchange losses on borrowings as required by a new accounting standard. Other extraordinary items were 63.3 mln dlrs provided for closures and writedown of assets and a 14.1 mln increase in future tax provisions, CRA said. Cash flow continued at a high level, being 950.6 mln dlrs before capital expenditure against 1.02 billion in 1985. The strong cash flow, coupled with the proceeds of the 1986 rights issue and the use of existing cash balances, enabled group debt to be reduced by nearly 500 mln dlrs. CRA said it held forward contracts at year-end to buy 985 mln U.S. Dlrs to hedge part of its foreign debt. This cost 47.0 mln dlrs after tax, included in the net interest cost.  
Unilever Plc and Nv combined 1986 pre-tax profit 1.14 billion stg vs 953 mln..  Unilever Plc and Nv combined 1986 pre-tax profit 1.14 billion stg vs 953 mln.  
3-MAR-1987 07:35:58.11. 3-MAR-1987 07:35:58.11 
ASHTON-TATE <TATE> 4TH QTR NET. Shr 43 cts vs 30 cts Net 10.6 mln vs 5,967,000 Revs 62.9 mln vs 41.5 mln Avg shrs 200.7 mln vs 20.2 mln Year Shr 1.26 dlrs vs 85 cts Net 30.1 mln vs 16.6 mln Revs 210.8 mln vs 121.6 mln Avg shrs 23.9 mln vs 19.4 mln NOTE: Share adjusted for January 1987 two-for-one split.  
UNILEVER IMPROVES IN MOST SECTORS DURING 1986. The Unilever Plc and NV <UN.A> group saw improved performance in almost all sectors during 1986, the Anglo-Dutch group said in its results statement. Very good progress was made last year, while the recent acquisition of Chesebrough-Pond's Inc <CBM.N> was a significant addition which will greatly benefit the group in the years to come. Earlier, Unilever reported combined fourth quarter pre-tax profit of 276 mln stg, level with the year earlier period, making 1.14 billion stg compared with 953 mln for the 1986 full year. Unilever said it plans to change its depreciation policy to the more conventional practice of depreciating assets individually rather than depreciating fixed assets at average rates. The new method is expected to lead to a reduction in the accumulated provision for depreciation and thereby increase the net book value of tangible asssets by about 300 mln stg as at January 1, 1987. Unilever Plc shares are up 25p since yesterday at 2,575p in buoyant response to the results and share split proposal, though 1986 profits were not ahead of market forecasts, dealers added.  
BURLINGTON COAT FACTORY WAREHOUSE CORP <BCF> NET. Jan 31 end Shr 1.40 dlrs vs 1.10 dlrs Net 16.4 mln vs 12.9 mln Revs 196.2 mln vs 157.5 mln  
F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS.  F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS  
EQUATORIAL COMMUNICATIONS <EQUA> TO HAVE LOSSES. Equatorial Communications Co said it expects to report losses of about 57 mln dlrs for the fourth quarter and 68 mln dlrs for the full year 1986 on revenues of about 10 mln dlrs for the quarter and 52 mln dlrs for the year. Equatorial said the losses will include a charge of about 45 mln dlrs from costs associated with the restructuring of its business, including adjustments to reflect the market value of transponders owned and leased by Equatorial and other reserves for inventory, receivables and excess facilities. Equatorial said the fourth quarter operating results will also include restructuring costs of about 5,500,000 dlrs, in addition to the 45 mln dlr charge. Equitorial also said that as of March One it is operating in technical default under its lease of transponders on the Galaxy III satellite due to its inabiliuty to maintain agreed-upon financial ratios.  It said it is in talks with the lessors in an attempt to restructure lease obligations. Further, Equitorial said it is in default of two other oblitations in connection with the purchase or lease of transponders as a result of cross-default provisions. Equatorial said it has signed a memorandum of understanding for Contel Corp <CTC> to purchase 10 mln dlrs of Equatorial master earth stations, micro earth stations and associated equipment and loan Equatorial six mln dlrs over a six-month period for repayment starting in December 1988. The company said Conteol, under the agreement, would assume a portion of Equatorial's rights and obligations under the Galaxy III transponder lease with <Burnham Leasing> on the occurrence of certain events. Equatorial said it would grant Contel an option to buy about 3,600,000 common shares at 3.25 dlrs each. Equatorial said its understandings with Contel are subject to Equatorial's ability to restructure a significant portion of its obligations and to obtain concessions from lenders and lessors, in particular under its Galaxy III transponder lease. It said it hopes to finalize a Contel agreement by April 15. Equatorial in 1985 earned 1,807,000 dlrs after a 3,197,000 dlr gain from early debt retirement on revenues of 56.1 mln dlrs. For the first nine months of 1986, the company lost 9,476,000 dlrs on revenues of 45.4 mln dlrs, compared with a 1,784,000 dlr profit after the early retirement gain on revenues of 38.5 mln dlrs.  
TRANSAMERICA <TA> TO HAVE AUSTRALIAN SALE GAIN. Transamerica Corp said it will have an after-tax gain of about 10 mln U.S. dlrs on the sale of its Occidental Life Insurance Co of Australia Ltd affiliate to <Pratt and Co Financial Services Pty Ltd> of Melbourne for 105 mln Australian dlrs. The sale was announced earlier today in Australia. Proceeds will be used to enhance the growth of North American operations of its Transamerica Occidental Life subsidiary, the company said.  
F.W. WOOLWORTH CO <Z> 4TH QTR JAN 31 NET. Shr 1.78 dlrs vs 1.64 dlrs Net 117 mln vs 106 mln Sales 2.02 billion vs 1.85 billion Avg shrs 65.6 mln vs 63.9 mln Year Shr 3.25 dlrs vs 2.75 dlrs Net 214 mln vs 177 mln Sales 6.50 billion vs 5.96 billion Avg shrs 65.6 mln vs 63.9 mln NOTE: Share data restated to reflect two for one stock split in May 1986  
FIRSTCORP <FCR> SEES GAIN ON CONDEMNATION. Firstcorp Inc said it weill report an after-tax gain of 1,827,000 dlrs or 56 cts per share primary and 42 cts fully diluted from the proposed condemnation and acquisition of a parking deck it operates by Wake County. The company said if it reinvested proceeds in a similar property within 24 months, the gain on the sale would be deferred for tax purposes.  
<NATIONAL SEA PRODUCTS LTD> 4TH QTR NET. Oper shr 43 cts vs 21 cts Oper net 6,846,000 vs 3,386,000 Revs 137.1 mln vs 107.6 mln Year Oper shr 1.36 dlrs vs 42 cts Oper net 21,764,000 vs 7,239,000 Revs 516.4 mln vs 454.7 mln Note: 1986 qtr excludes extraordinary gain of 784,000 dlrs or five cts share, versus extraordinary loss of 110,000 dlrs or shr nil in 1985 qtr Note continued: 1986 year excludes extraordinary gain of 14,360,000 dlrs or 94 cts share, versus extraordinary gain of 2,883,000 dlrs or 19 cts share in prior year  
NATIONAL FSI INC <NFSI> 4TH QTR LOSS. Shr loss six cts vs profit 19 cts Net loss 166,000 vs profit 580,000 Revs 3,772,000 vs 5,545,000 Year Shr loss 13 cts vs profit 52 cts Net loss 391,000 vs profit 1,425,000 Revs 15.4 mln vs 16.6 mln NOTE: 1985 year figures pro forma for purchase accounting adjustments resulting from March 1985 reeacquisition of company by its original shareholders before August 1985 initial public offering.  
<PRECAMBRIAN SHIELD RESOURCES LTD> YEAR LOSS. Shr loss 1.93 dlrs vs profit 16 cts Net loss 53,412,000 vs profit 4,479,000 Revs 24.8 mln vs 32.7 mln Note: 1986 shr and net include 51,187,000 dlr writedown on U.S. operations, uneconomic coal operations and other mineral properties  
GREASE MONKEY HOLDING CORP <GMHC> YEAR NOV 30. Shr nil vs nil Net 130,998 vs 30,732 Revs 1,568,941 vs 1,0053,234  
ACCEPTANCE INSURANCE HOLDINGS INC <ACPT> YEAR. Oper shr profit 1.80 dlrs vs loss 2.28 dlrs Oper net profit 2,048,0000 vs loss 1,318,000 Revs 25.4 mln vs 12.3 mln Avg shrs 1,135,000 vs 576,000 NOTE: Net excludes realized investment gains of 40,000 dlrs vs 13,000 dlrs. 1986 net excludes 729,000 dlr tax credit.  
MINSTAR INC <MNST> 4TH QTR NET. Oper shr loss 31 cts vs loss 30 cts Oper net loss 5,429,000 vs loss 5,216,000 Revs 257.5 mln vs 243.6 mln Avg shrs 17.5 mln vs 13.5 mln Year Oper shr loss eight cts vs profit 28 cts Oper net loss 1,324,000 vs profit 4,067,000 Revs 989.5 mln vs 747.9 mln Avg shrs 17.6 mln vs 15.7 mln  NOTE: 1986 operating net loss excludes income from discontinued operations equal to 11 cts in the quarter and 66 cts in the year compared with 1.07 dlrs in the quarter and 1.23 dlrs in the respective periods of 1985. 1986 operating net loss also excludes extraordinary charges of 14 cts in the quarter and 54 cts in the year. 1985 operating net profit excludes an extraordinary gain of 47 cts.  
<MARK RESOURCES INC> YEAR LOSS. Shr not given Loss 54.9 mln Revs 27.2 mln Note: Prior year results not given. 1986 results include accounts of 89 pct owned <Precambrian Shield Resources Ltd>, acquired November 5, 1986  
TRANSFORM LOGIC <TOOG> REVISES RESULTS DOWNWARD. Transform Logic Corp said it has revised downward its previously reported fourth quarter and year, ended October 31, results to reflect compensation expense for employee stock options. The company said resolution of this disagreement with its auditors came as a result of Securities and Exchange Commission involvement. The company will amend its option-granting procedure to conform to the SEC decision which will eliminate future charges, it added. Transform said its fourth quarter profit was revised to 305,082 dlrs, or two cts a share, from the previously reported 580,955 dlrs, which left the company with a fiscal 1986 loss of 249,814 dlrs, or two cts a share, instead of the reported 26,195 dlrs profit.  
AMERICAN STORES <ASC> SEES LOWER YEAR NET. American Stores Co said it expects to report earnings per share of 3.70 to 3.85 dlrs per share on sales of slightly over 14 billion dlrs for the year ended January 31. The supermarket chain earned 4.11 dlrs per share on sales of 13.89 billion dlrs last year. The company did not elaborate.  
KASLER CORP <KASL> 1ST QTR JAN 31 NET. Shr profit three cts vs loss seven cts Net profit 161,000 vs loss 367,000 Revs 24.3 mln vs 26.5 mln  
UNILEVER HAS IMPROVED MARGINS, VOLUMES IN 1986. Unilever Plc <UN.A> and NV group reported improvements in margins and underlying sales volume growth of five pct in 1986 after stripping out the effects of falling prices, disposals and currency movements, Unilever Plc chairman Michael Angus said. He told reporters that volumes in North America increased some 10.5 pct while European consumer goods rose about 2.5 pct after being flat for some years. Much of the disposal strategy, aimed at concentrating activities on core businesses, had now been completed, he noted. But the process of acquisitions would go on, with strategic acquisitions taking place "from time to time," he said. The company earlier reported a 20 pct rise in pre-tax profits for 1986 to 1.14 billion stg from 953 mln previously. In guilder terms, however, profits at the pre-tax level dropped three pct to 3.69 billion from 3.81 billion. Angus said the recent purchase of Chesebrough-Pond's Inc <CBM.N> for 72.50 dlrs a share was unlikely to bring any earnings dilution. However, it would not add much to profits, with much of the company's operating profits paying for the acquisition costs. Finance director Niall Fitzgerald added that while gearing - debt to equity plus debt - rose to about 60 pct at end 1986 from 35 pct last year, this was expected to drop back to about 40 pct by end-1987. The same divergence was made in full year dividend, with Unilever NV's rising 3.4 pct to 15.33 guilders and Unilever Plc's increasing 29.9 pct to 50.17p, approximately in line with the change in attributable profit. Angus said the prospectus for the sale of parts of Chesebrough was due to be published shortly. However, he said that there was no target date for completing the process. He also declined to say what sort of sum Unilever hoped to realise from the operation, beyond noting that Chesebrough had paid around 1.25 billion dlrs for Stauffer Chemical Co, which operates outside Unilever's core activities. In the U.S., Organic growth from the Lipton Foods business, considerable expansion in the household products business and in margarine had been behind the overall sales increase. However, he noted that the U.S. Household products business had turned in a planned loss, with fourth quarter performance better than expected despite the anticipated heavy launch costs of its Surf detergents.  
PRECAMBRIAN SHIELD TAKES 51 MLN DLR WRITEDOWN. <Precambrian Shield Resources Ltd>, earlier reporting a large loss against year-ago profit, said the 1986 loss was mainly due to a 51,187,000 dlr writedown on its U.S. operations, uneconomic coal and other mineral properties. Precambrian, which is 89 pct owned by <Mark Resources Inc>, said it took the writedown in accordance with new Canadian Insititute of Chartered Accountants guidelines for full cost method accounting by oil and gas companies. Precambrian earlier reported a 1986 loss of 53.4 mln dlrs, compared to profit of 4.5 mln dlrs in the prior year.  
INTEK DIVERSIFIED CORP <IDCC> 4TH QTR NET. Shr three cts vs three cts Net 98,20000 vs 91,898 Revs 2,843,520 vs 2,372,457 Year Shr 13 cts vs 21 cts Net 401,179 vs 681,374 Revs 10.5 mln vs 9,699,535  
PHARMACIA AB <PHAB ST>  1986 YEAR. Sales 3.65 billion crowns vs 3.40 billion. Profit  after financial items 821.2 mln crowns vs 740.2 mln. The 1986 results include a once-off writedown of 520 mln crowns for intangible assets, mainly the know-how paid for in the takeover of a number of high-tech companies by the group, Pharmacia said. Earnings per share after real tax including the writedown: 1.94 crowns vs 12.05 crowns. Earnings per share after real tax (not including the writedown): 12.38 crowns vs 12.05 Earnings per American Depository Receipt (ADR) according to U.S. Accounting principles after real tax including the writedown): 1.96 crowns vs 9.49 crowns. Earnings per ADR according to U.S. Accounting principles after real tax (without the writedown): 9.8 crowns vs 9.49. One ADR represents 0.75 pct of one B Free share in Pharmacia. The board proposed a dividend of 1.55 crowns vs 1.25.  
PHARMACIA FORECASTS HIGHER 1987 EARNINGS. Pharmacia AB <PHAB ST> forecast earnings after financial items of one billion crowns in 1987 vs 821.2 mln last year on condition that exchange rates remained at their present parities. Sales would in such circumstances go up to six billion crowns from 3.65 billion in 1986, it said. A weakening Dollar was mainly responsible for a five pct negative impact on sales during 1986 which the company blamed on currency movements. Last year's results were also badly hit by a once-off writedown of 520 mln crowns for intangible assets. The company said mainly this represented the premium the group had paid for the know-how of various high-tech firms it had taken over. The accounts also showed a financial deficit of 1.87 billion crowns vs a deficit of 133 mln which was covered partly by drawing down company liquidity to 738 mln vs one billion and partly by increasing borrowing to 2.23 billion vs 621 mln. Pharmacia said the financial deficit was caused by it having used more funds than generated by group operations, mainly because of the 1.36 billion it paid in cash for shares in LKB-Produkter AB and the assets of Intermedics-Intraocular Inc.  
FIRST FEDERAL SAVINGS <FFKZ> YEAR NET. Shr 78 cts vs one dlr Net 1,413,000 vs 1,776,000 Assets 705.3 mln vs 597.3 mln Deposits 495.6 mln vs 493.9 mln Loans 260.0 mln vs 379.7 mln Qtly div six cts vs six cts prior qtr Pay April 1 Record March 6 NOTE: 1986 net includes charges from accounting changes, from one-time expenses associated with a proxy contest and an increase in loan reserves. First Federal Savings and Loan Association of Kalamazoo is full name of company.  
TOLL BROTHERS INC <TOL> 1ST QTR JAN 31 NET. Shr 22 cts vs 12 cts Net 3,243,000 vs 1,656,000 Revs 28.4 mln vs 21.5 mln NOTE: All amts reflect 3-for-2 stock split of company's common in form of 50 pct stock dividend paid Feb 26, 1987.  
PILLSBURY CO <PSY> VOTES QUARTERLY DIVIDEND. Qtly div 25 cts vs 25 cts prior qtr Pay 31 May Record 1 May  
BERKSHIRE GAS CO <BGAS> PAYS REGULAR QTLRY DIV. Qtrly div 28.5 cts vs 28.5 cts Pay April 15 Record March 31  
CHARMING SHOPPES INC <CHRS> 4TH QTR JAN 31 NET. Shr 28 cts vs 22 cts Net 14 mln vs 10.6 mln Revs 163.8 mln vs 127.3 mln Year Shr 81 cts vs 59 cts Net 40.5 mln vs 28.7 mln Revs 521.2 mln vs 391.6 mln  
PANSOPHIC SYSTEMS <PNS> SPLITS STOCK 2-FOR-1. Pansophic Systems Inc said it will split its stock two-for-one effective April two to shareholders of record March 13. It also said it will pay a six cts per share dividend on the pre-split shares, a regular quarterly dividend, on April two to shareholders of record March 13.  
LSB INDUSTRIES INC <LSB> 4TH QTR NET. Shr profit five cts vs loss 2.11 dlrs Net profit 375,061 vs loss 10.4 mln Revs 39.9 mln vs 37.8 mln Avg shrs 6,536,008 vs 4,939,895 12 mths Shr profit 47 cts vs loss 3.37 dlrs Net profit 2,837,288 vs loss 16.6 mln Revs 169.1 mln vs 149.4 mln Avg shrs 6,037,640 vs 4,937,378 NOTE: primary earnings per share are based on the weighted average number of common and dilutive common equivalent shares outstanding during each period after accounting for preferred stock dividends. The qtr and year 1985 includes a 6,000,000 provision for restructuring costs related to the sale of its Energy business and parts of its Bearing business. The qtr and year 1986 includes charges of 1,200,000 and 5,200,000, respectively, for restructuring costs and operating losses which were charged against the previously provided accruals for restructuring costs. The qtr and year 1986 includes deferred income taxes of 244,000 and 785,000, respectively. Year net 1986 includes operations of Friedrich Climate Master Inc, which the company acquired in August 1985, for the full period, while the comparable period for 1985 includes only operations from August 16, 1985, to Dec 31, 1985. Third qtr 1986 Includes extraodinary tax gain of 270,000 from early extinquishment of certain drafts payable.  
GULF RESOURCES AND CHEMICAL CORP <GRE> 4TH QTR. Oper shr profit 34 cts vs loss 53 cts Oper net profit 3,337,000 vs 4,881,000 Revs 32.7 mln vs 49.6 mln Year Oper shr profit 20 cts vs loss 90 cts Oper net profit 2,374,000 vs loss 9,381,000 Revs 126.9 mln vs 160.5 mln NOTES: Operating net excludes loss 6,050,000 dlrs, or 64 cts a share, vs loss 24,839,000 dlrs, or 2.61 dlrs a share, in quarter and loss 6,050,000 dlrs, or 64 cts a share, vs profit 64,013,000 dlrs, or 6.27 dlrs a share, from discontinued operations 1986 loss from discontinued operations includes 6.0 mln dlrs charge, equal to 64 cts a share, to provide for additional liabilities resulting from the 1981 closure of lead, zinc and silver mining, smelting and refining business 1986 year operating net includes pre-tax gain of 5.3 mln dlrs, equal to 56 cts a share, from pension plan termination and gain of 5.2 mln dlrs, or 56 cts a share, from reduction in deferred taxes Effective Jan 1, 1987, company changed oil and gas accounting to successful efforts from full cost, increasing 1986 year net 9.2 mln dlrs, or 98 cts a share, and increasing 1985 loss 4.3 mln dlrs, or 43 cts a share. The cumulative effect of the change was to decrease retained earnings at Dec 31, 1986, by 14.0 mln dlrs  
PANSOPHIC SYSTEMS INC <PNS> 3RD QTR JAN 31 NET. Shr 70 cts vs 56 cts Net 6,197,000 vs 4,880,000 Revs 24.1 mln vs 17.1 mln Nine mths Shr 1.38 dlrs vs 1.20 dlrs Net 12.1 mln vs 10.4 mln Revs 52.5 mln vs 41.8 mln  
KNUTSON MORTGAGE CORP <KNMC> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April 13 Record March 13  
FORD MOTOR CO OF CANADA LTD 4TH QTR SHR 8.17 DLRS VS 55 CTS.  FORD MOTOR CO OF CANADA LTD 4TH QTR SHR 8.17 DLRS VS 55 CTS  
AUSIMONT COMPO NV <AUS> 4TH QTR NET. Shr 42 cts vs 39 cts Net 12.3 mln vs 9,382,000 Sales 172.0 mln vs 146.00 mln Avg shrs 29.5 mln vs 24.3 mln Year Shr 1.63 dlrs vs 1.35 dlrs Net 45.7 mln vs 30.0 mln Sales 665.5 mln vs 446.2 mln Avg shrs 28.0 mln vs 22.3 mln NOTE: translated at 1,339 Italian lire to dollar.  
HOME FEDERAL OF THE ROCKIES <HROK> 4TH QTR LOSS. Shr loss 2.07 dlrs vs profit 36 cts Net loss 1,088,000 vs profit 187,000 Year Shr loss 12.23 dlrs vs profit 17 cts Net loss 645,000 vs profit 89,000 NOTE: Home Federal Savings and Loan Association of the Rockies. 1986 net includes tax credits of 165,000 dlrs in quarter and 189,000 dlrs in year. Net includes pretax loan loss provisions of 1,439,000 dlrs vs 127,000 dlrs in quarter and 1,701,000 dlrs vs 222,000 dlrs in year.  
CONTINENTAL <GIC> SEES 1987 NET UP FROM TAX LAW. Continental Corp said the fresh start provision of the Tax Reform Act of 1986 may add 1.30 to 1.60 to 1987 earnings per share. The insurance holding company had net earnings of 449.6 mln dlrs, or, or 7.42 per share, in 1986. John Loynes, Continental chief financial officer, said the fresh start provision allowed the company to discount opening tax reserves to January 1, 1987, which released deferred taxes into earnings. Loynes said the provision's potential benefit would decline gradually over the next four years, during which time Continental will pay 250 mln to 350 mln dlrs more in taxes. Loynes added, however, the higher taxes are not expecetd to have a significant impact on earnings.  
FORD MOTOR CO OF CANADA LTD <FC> 4TH QTR NET. Shr 8.17 dlrs vs 55 cts Net 67.7 mln vs 4.5 mln Revs 3.67 billion vs 3.54 billion Year Shr 12.19 dlrs vs 24.00 dlrs Net 101.1 mln vs 199.0 mln Revs 14.33 billion vs 13.35 billion Note: 90 pct owned by Ford Motor Co <F>  
ROYAL BANK OF CANADA 1ST QTR SHR 88 CTS VS 1.22 DLRS.  ROYAL BANK OF CANADA 1ST QTR SHR 88 CTS VS 1.22 DLRS  
ANITEC IMAGE TECHNOLOGY CORP <ANTC> 2ND QTR NET. Shr 33 cts vs 28 cts Net 3,722,000 vs 3,103,000 Sales 33.0 mln vs 31.8 mln Avg shrs 11.2 mln vs 11.1 mln 1st half Shr 68 cts vs 58 cts Net 7,585,000 vs 6,346,000 Sales 65.9 mln vs 61.3 mln Avg shrs 11.2 mln vs 11.0 mln NOTE: Share adjusted for three-for-two October 1986 stock split.  
DASA CORP <DASA> YEAR NET. Shr profit three cts vs loss 11 cts Net profit 507,000 vs loss 1,823,000 Revs 11.2 mln vs 204,000  
ADC TELECOMMUNICATIONS INC <ADCT> 1ST QTR NET. Periods ended Jan 31 Shr 28 cts vs 35 cts Net 2,374,000 vs 2,987,000 Sales 35.2 mln vs 34 mln Backlog 36.8 mln vs 33.9 mln  
<ROYAL BANK OF CANADA> 1ST QTR JAN 31 NET. Shr basic 88 cts vs 1.22 dlrs Shr diluted 83 cts vs 1.10 dlrs Net 114,108,000 vs 140,389,000 Avg shrs 107.5 mln vs 100.5 mln Loans 66.4 billion vs 65.9 billion Deposits 82.8 billion vs 84.4 billion Assets 98.7 billion vs 96.7 billion.  
SUPRADUR COS INC <SUPD> YEAR NET. Oper shr 1.58 dlrs vs 77 cts Oper net 1,648,000 vs 817,000 Sales 25.7 mln vs 20.5 mln NOTE: Net excludes discontinued operations gain 451,000 dlrs vs loss 4,310,000 dlrs.  
WALLACE COMPUTER SERVICES INC <WCS> 2ND QTR NET. Shr 69 cts vs 64 cts Net 7,046,000 vs 6,492,000 Sales 85.7 mln vs 79.6 mln Six Mths Shr 1.28 dlrs vs 1.19 dlrs Net 13,098,000 vs 12,006,000 Sales 166.3 mln vs 153.3 mln NOTE: Periods end January 31, 1987 and 1986, respectively.  
AMERICAN VANGUARD CORP <AMGD> YEAR NET. Shr 57 cts vs 27 cts Net 1,002,000 vs 470,000 Sales 15.9 mln vs 12.0 mln Note: 4th qtr data not available  
NORTH AMERICAN BIOLOGICALS INC <NBIO> 4TH QTR. Oper shr one ct vs three cts Oper net 99,000 vs 327,000 Revs 12.1 mln vs 8,800,000 Avg shrs 15.5 mln vs 11.3 mln Year Oper shr six cts vs 11 cts Oper net 841,000 vs 956,000 Revs 44.1 mln vs 34.4 mln Avg shrs 15.3 mln vs 8,519,677 NOTE: Net excludes tax credits of 299,000 dlrs vs 29,00000 dlrs in quarter and 809,000 dlrs vs 71,000 dlrs in year.  
OMNICOM GROUP INC <OMCM> 4TH QTR NET. Shr profit 27 cts vs profit 51 cts Net profit 6,600,000 vs profit 12,231,000 Revs 211.7 mln vs 193.4 mln 12 mths Shr loss 17 cts vs profit 1.27 dlrs Net loss 4,077,000 vs profit 30,142,000 Revs 753.5 mln vs 673.4 mln NOTE: in qtr ended 1986 the company recognized expenses of 5,948,000 for restructing the combined operations of BBDO, Doyle Dane Bernbach and Needham Harper Worldwide in August 1986 before tax gains. These relate primarily to the conosolidation and elimination of duplicate facilities and staff. for the year 1986, the provisions for mergers and restructuring expenses brought non-recurring expenses to 40,292,000 before tax gains, of which 8,863,000 represented merger costs and 31,429,000 related to restructuring of the combine operations.  
3-MAR-1987 11:58:47.35. 3-MAR-1987 11:58:47.35 
ROYAL BANK/CANADA SEES HIGHER 1987 LOAN LOSSES. <Royal Bank of Canada> said it estimates 1987 loan losses at one billion dlrs, a 25 mln dlr increase over last year. Royal Bank said it set its provisions "given the continued debt-servicing problems ... in the North American energy industry and the uncertain outlook for energy prices," and also continued to add to its general provisions for loans to troubled borrower countries. The bank's loan loss provision for the first quarter ended January 31 rose to 223 mln dlrs from 187 mln dlrs in the year-ago quarter. The bank said non-accrual loans, net of provisions for loan losses, totalled 2.2 billion dlrs on January 31, up from 2.0 billion dlrs a year ago. In reporting lower first quarter earnings, chairman Allan Taylor said problems with credit quality--particularly in loans associated with the energy sector--continue to have a substantial adverse effect on the bank's earnings. Taylor said profitability of the bank's international operations remains weak, reflecting resource-related difficulties of private and public sector borrowers and unsatisfactory results from capital market activities. Taylor said it would be premature to speculate on the outcome of debt resturcturing negotiations with Brazil or their potential impact on the Royal Bank. The bank earlier reported first quarter profit fell to 114.1 mln dlrs from 140.4 mln dlrs a year ago.  
DISTRIBUTED LOGIC CORP <DLOG> 1ST QTR LOSS. Qtr ended Jan 31 Shr loss nine cts vs profit 13 cts Net loss 231,256 vs profit 341,730 Revs 2,793,677 vs 3,676,296  
INTERMEDICS INC <ITM> 1ST QTR NET. Oper shr 26 cts vs 18 cts Oper net 2,877,000 vs 1,363,000 Revs 44.3 mln vs 40.8 mln Avg shrs 10.9 mln vs 10.5 mln NOTE: prior qtr excludes loss 475,000, or five cts per share, for discontinued operations for the sale of subsidiaries Intermedics Intraocular Inc, Electronics Inc, and Intermedics Infusaid Inc. Excludes 1987 qtr 1,694,000 operating loss carryforwards vs 78,000 qtr prior.  
FORD CANADA CUTS ANNUAL DIVIDEND BY SIX DLRS TO SIX DLRS CASH A SHARE.  FORD CANADA CUTS ANNUAL DIVIDEND BY SIX DLRS TO SIX DLRS CASH A SHARE  
PAINE WEBBER RESIDENTIAL REALTY INC <PWM> DIV. Qtrly 25 cts vs 16 cts Pay March 30 Record March 13 NOTE: Prior qtr is for two months operation, October and November and represents a parital dividend.  
OMNICOM GROUP <OMCM> SETS REGULAR PAYOUT. Qtlry div 24.5 cts vs 24.5 cts Pay April 6 Record March 16  
KNUTSON MORTGAGE <KNMC> SEES STRONG SECOND QTR. Knutson Mortgage Corp said it expects strong earnings performance for its initial fiscal second quarter earnings ending March 31 since going public in September 1986. Albert Holderson, Knutson chairman, said he expects earnings of about 40 cts per share for the quarter as a result of a strong mortgage business during the quarter. Knutson earlier declared a quarterly dividend of 10 cts a share, versus 10 cts a share prior, payable April 13 to shareholders of record March 13.  
INTERMEDICS INC <ITM> 1ST QTR FEB ONE NET. Oper shr 26 cts vs 18 cts Oper net 2,877,000 vs 1,838,000 Revs 44.3 mln vs 40.8 mln NOTE: Current 1st qtr oper net excludes operating loss carryforward of 1,694,000 or 16 cts per share. 1986 1st qtr oper net excludes loss carryforward of 78,000 dlrs or one ct per share and loss from discontinued operations of 475,000 dlrs.  
CARME INC <CAME> 2ND QTR JAN 31 NET. Shr nine cts vs one ct Net 247,489 vs 27,301 Sales 1,933,107 vs 796,613 Six mths Shr 21 cts vs five cts Net 565,106 vs 121,997 Sales 3,781,970 vs 1,778,110  
WILLCOX AND GIBBS INC <WG> 4TH QTR NET. Shr 42 cts vs 76 cts Net 2.3 mln vs 3.3 mln Revs 72.3 mln vs 59.8 mln Year Shr 1.48 dlrs vs 2.59 dlrs Net 7.6 mln vs 11.1 mln Revs 261.7 mln vs 224.7 mln NOTE: 1985 net includes extraordinary gain of 1.5 mln dlrs or 35 cts per share in 4th qtr and 5.1 mln or 1.19 dlrs for the year.  
OMNICOM GROUP INC <OMCM> 4TH QTR NET. Shr profit 27 cts vs profit 51 cts Net profit 6,600,000 vs profit 12.2 mln Revs 211.7 mln vs 193.4 mln Qtly div 24.5 cts vs 24.5 cts Avg shrs 24.2 mln vs 23.8 mln Year Shr loss 17 cts vs profit 1.27 dlrs Net loss 4,077,000 vs profit 30.1 mln Revs 753.5 mln vs 673.4 mln Avg shrs 24.4 mln vs 23.7 mln NOTE: Qtly div payable April six to holders of record March 16. 1986 4th qtr and year net includes a charge of 5.9 mln dlrs and 31.4 mln dlrs, respectively, for corporate restructuring.  
FORD MOTOR CO OF CANADA LTD<FC> CUTS ANNUAL DIV. Annual div six dlrs vs 12 dlrs prior Pay March 19 Record March 13 Note: 1986 payout includes two dlrs a share extra dividend 1985 payout includes four dlrs a share extra dividend  
UNITED HEALTHCARE CORP <UNIH> 4TH QTR NET. Shr 10 cts vs 13 cts Net 1,553,000 vs 1,541,000 Revs 73.1 mln vs 32.1 mln Avg shrs 15,474,000 vs 12,316,000 Year Shr 47 cts vs 24 cts Net 7,241,000 vs 2,835,000 Revs 216.2 mln vs 101.2 mln Avg shrs 15,492,000 vs 11,921,000 Note: Net income includes extraordinary profit from recognition of tax loss carryforward of 920,000 dlrs, or six cts a share, in 1986 year, and of 785,000 dlrs, or seven cts a share, in both 1985 periods.  
RAYTECH CORP <RAY> 4TH QTR DEC 28 NET. Shr profit 78 cts vs loss 1.05 dlrs Net profit 2,336,000 vs loss 3,002,000 Revs 26.0 mln vs 26.7 mln Year Shr profit 1.59 dlrs vs loss 6.35 dlrs Net profit 4,688,000 vs loss 18.2 mln Revs 113.5 mln vs 112.4 mln NOTE: 1986 4th qtr and yr includes loss carryfoward of 534,000 dlrs and 1,662,000 dlrs, respectively.  
DATAMAG INC <DMAG> 1ST QTR DEC 31 LOSS. Net loss 92,623 vs profit 11,209 Sales 93,483 vs 189,388 Note: per share data not available, as company went public in January, 1987.  
ROYAL BANK SEES IMPROVED RESULTS. <Royal Bank of Canada>, in reporting a 19 pct drop in first quarter earnings, said it expects to report improved results in future earnings periods. "Healthy consumer credit growth, record fee-based income, highly profitable securities and foreign exchange trading, and a solid capital position...combined with the restraint of non-interest expenses, should lead to improved results in the periods ahead," chairman Allan Taylor said in a statement. The bank earlier reported profit for the first quarter ended January 31 fell to 114 mln dlrs from 140 mln dlrs a year ago. Taylor said loans to the energy sector continue to substantially hurt earnings while profitability of the bank's international operations remains weak, reflecting resource-related difficulties of private and public sector borrowers and unsatisfactory results from capital market activities. The bank said earnings from domestic operations rose to 103 mln dlrs in the first quarter from 98 mln dlrs a year ago while earnings from international operations plunged to 11 mln dlrs from 42 mln dlrs last year. Royal Bank said first quarter international net interest income declined from last year, reflecting reduced revenues from international investment banking as well as a significant loss on disposal of its affiliate in Trinidad and Tobago. Other income rose to 251 mln dlrs from 220 mln dlrs last year. The rise was due to higher commercial banking and retail deposit service fees, and higher foreign exchange revenue but lower securities commissions from international investment bank operations partly offset the gains, Royal Bank said. The bank said a two billion dlr increase in total assets to 98.7 billion dlrs was due mainly to continued growth in consumer lending, particularly residential mortgages.  
KAY CORP <KAY> 4TH QTR NET. Oper shr 25 cts vs 1.21 dlrs Oper net 1,366,000 vs 6,287,000 Revs 251.3 mln vs 107.1 mln Year Oper shr 1.10 dlrs vs 1.06 dlrs Oper net 5,552,000 vs 4,982,000 Revs 827.5 mln vs 434.4 mln NOTE: Oper net excludes results of Kay Jewelers Inc, a former subsidiary. On Dec 31, 1986 company distributed remaining 80.4 pct interest in subsidiary to Kay Corp holders. 1985 amts restated in connection with company's distribution of investment in Kay Jewelers Inc. 1986 4th qtr and yr oper net excludes 8,308,000 dlrs or 1.52 dlrs per share, and 7,774,000 dlrs or 1.54 dlrs per share, respectively, for equity in net income of spun-off unit. 1985 4th qtr and yr oper net excludes 6,806,000 dlrs or 1.28 dlrs per share and 5,770,000 dlrs or 1.09 dlrs per share, respectively, for equity in net earnings of spun-off unit. 1985 oper net also excludes 2,778,000 or 52 cts per share for adoption of new pension accounting rules and ine cts per share for gain from assets sales.  
PANTASOTE INC <PNT> 4TH QTR LOSS. Oper shr loss four cts vs loss 33 cts Oper net loss 154,000 vs loss 1,301,000 Sales 30.0 mln vs 27.0 mln Year Oper shr profit 60 cts vs loss 16 cts Oper net profit 2,364,000 vs loss 608,000 Sales 113.5 mln vs 132.8 mln NOTE: Net excludes extraordinary charges from provision for roofing products warranties and costs from sale of printing/laminate division of 320,000 dlrs vs 10.3 mln dlrs in quarter and 4,3200,000 dlrs vs 12.7 mln dlrs in year. Net excludes tax credits of 62,000 dlrs vs 41,000 dlrs in quarter and 127,000 dlrs vs 88,000 dlrs in year.  
KAY JEWELERS INC <KJI> 4TH QTR NET. Shr 1.62 dlrs vs 1.33 dlrs Net 10.3 mln vs 8,459,000 Revs 127.5 mln vs 95.7 mln Year Shr 1.52 dlrs vs 1.20 dlrs Net 9,669,000 vs 7,481,000 Revs 278.1 mln vs 232.00 mln  
WALL STREET STOCKS/ANACOMP INC <AAC>. Anacomp Inc, one of the most actively traded NYSE issues, rose today as at least one analyst expected earnings to be boosted by its planned acquisition of a micrographics company. Anacomp rose 1/2 to 6-3/4 on volume of 950,000 shares after trading as high as seven earlier. Howard Harlow, analyst at Whale Securities Corp, said Anacomp's earnings for fiscal 1987 ending September 31 could be doubled to 80 cts a share from the 40 cts a share he had forecast before Anacomp agreed to buy DatagraphiX, a micrographics firm, from General Dynamics Corp <GD>. "The company can earn 80 cts a share in fiscal 1987, maybe as much as a dlr a share, because of DatagraphiX," Harlow said. "Most of the benefit will be in the fourth qtr because it will integrate the company in the second half." Anacomp's earnings will be less if it has problems integrating DatagraphiX, Harlow said. A spokesman at Anacomp said the company expects to complete its deal for DatagraphiX later this month. She would not say how much it will pay for DatagraphiX, but noted that DatagraphiX contributed 10 mln dlrs in earnings to General Dynamics on revenues of 239 mln dlrs in 1986. Harlow said a fellow analyst at Whale Securities estimates that Anacomp will pay between 100 mln dlrs to 150 mln dlrs for DatagraphiX. "The estimates on the street narrow it down to between 110 mln dlrs and 130 mln dlrs," Harlow added. Anacomp reported net of 2.8 mln dlrs or nine cts a share in its first qtr ended December 31, up from 301,000 dlrs or one ct a share. In Anacomp's fiscal 1986 it earned 4,073,000 dlrs or 13 cts a share. Whale Securities recommends buying the stock, Harlow said.  
FERTILITY AND GENETICS RESEARCH <BABY> 1ST QTR. Periods ended December 31 Shr loss 10 cts vs loss seven cts Net loss 316,289 vs loss 189,140 Revs 61,762 vs 8,934  
UNITED COS FINANCIAL CORP <UNCF> 4TH QTR NET. Shr 68 cts vs 78 cts Net 2,432,179 vs 2,236,471 Revs 50.8 mln vs 35.1 mln Avg shrs 3,600,000 vs 2,850,000 Year Shr 2.82 dlrs vs 3.35 dlrs Net 10.0 mln vs 9,554,658 Revs 177.5 mln vs 138.1 mln Avg shrs 3,567,123 vs 2,850,000  
BRISTOL-MYERS CO <BMY> SETS QUARTERLY. Qtly div 70 cts vs 70 cts prior Pay May One Record April Three  
AID CORP <AIDC> RAISES QUARTERLY DIVIDEND. Qtly div nine cts vs eight cts in prior qtr Payable March 31 Record March 13  
<D.H. HOWDEN AND CO LTD> INCREASES DIVIDEND. Semi-annual 30 cts vs 25 cts prior Pay June 30 Record June 15  
<CO-STEEL INC> 4TH QTR NET. Oper shr 25 cts vs 25 cts Oper net 6,322,000 vs 4,660,000 Revs 189.1 mln vs 174.7 mln Avg shrs 23.5 mn vs 17.1 mln Year Oper shr 1.04 dlrs vs 14 cts Oper net 21,929,000 vs 3,629,000 Revs 760.2 mln vs 674.8 mln Avg shrs 20.5 mln vs 17.1 mln Note: Qtr shr and net exclude tax gain of 4,573,000 dlrs or 17 cts share, versus gain of 17,259,000 dlrs or 1.02 dlrs share Year shr and net exclude tax gain of 15,992,000 dlrs or 78 cts share, versus gain of 18,042,000 dlrs or 1.06 dlrs share  
WILLCOX AND GIBBS INC <WG> 4TH QTR NET. Oper shr 42 cts vs 41 cts Oper net 2,322,000 vs 1,785,000 Sales 72.3 mln vs 59.8 mln Avg shrs 5,527,000 vs 4,355,000 Year Oper shr 1.48 dlrs vs 1.40 dlrs Oper net 7,637,000 vs 5,973,000 Sales 261.7 mln vs 224.7 mln Avg shrs 5,165,000 vs 4,277,000 NOTE: 1985 operating net excludes gains of 1,523,000 dlrs, or 35 cts a share, in quarter and 5,090,000 dlrs, or 1.19 dlrs a share, in year from tax carryforwards  
GE <GE> PROFIT OUTLOOK AIDED BY ENGINE ORDER. One of General Electric Co's biggest businesses, aircraft engines, will ride a wave of increasing profits into 1991 because of a new contract worth 650 mln dlrs, Wall Street analysts said. Previously, it was expected the business would peak and decline at some point in the next five years. The improved outlook results from AMR Corp's <AMR> decision to order 40 new planes powered by CF6-80C2 GE engines. "Creative financial footwork helped GE get the order," said Nicholas Heymann, analyst at Drexel Burnham Lambert Inc. AMR declined to go into detail on financing arrangements for its order of 15 Boeing Co <BA> and 25 <Airbus Industrie> twinjet long distance aircraft. But AMR said it was using "rent-a-plane leases" that allow it to operate the aircraft without adding to its debt structure. AMR also has the right to decline delivery of the planes or return them on short notice. The arrangement protects AMR in the case of an unexpected development such as a severe downturn in the economy. From GE's point of view the package looks like a good deal for several reasons, Heymann said. GE will be able to record revenue as a sale at the time of delivery, Heymann noted. And if for some reason AMR decides not to take the planes GE's financial arm, General Electric Financial Services Inc, would have little trouble rounding up another airline that wanted the fuel efficient planes. On the whole, the deal appears to pose little risk for GE, Heymann said. GE's stock declined 1/4 to 103-1/2 on 625,000 shares by midafternoon. H.P. Smith, analyst at Smith Barney, Harris Upham and Co said for a 40 billion dlr (revenue) company "no one order will have much of an effect on the stock." Russell Leavitt, analyst at Salomon Brothers Inc, said the order "will help to maintain a good level of production and profitability in the aircraft engine business" for GE. Heymann sees operating profits from GE's jet engine business rising from 870 mln dlrs last year to 1.3 billion dlrs by 1991. Revenue from jet engines was close to six billion dlrs last year, with well over half of the business in the military sector, according to analysts' estimates. The rosy outlook for GE's jet engine business coincides with an upbeat performance in other segments. Heymann expects GE to earn 1.39 dlrs per share in the first quarter of 1987. Saying many will be suprised by the results, he believes GE has shown through its acquisition of RCA Corp that it has a "unique ability" to buy a major business and reshape it, pruning some parts and recombining parts with other elements of its 14 business areas. Smith sees GE earning 1.35 dlrs per share in the current quarter. He credits good results at RCA, in turn aided by the NBC broadcasting operation, and lower interest rates. Leavitt sees 1.40 dlrs for the current quarter, in part crediting "significant benefits from the RCA acquisition."  
BUCKHORN INC <BKN> 4TH QTR LOSS. Oper shr loss 1.24 dlrs vs profit 19 cts Oper net loss 1,965,000 vs profit 646,000 Revs 10.5 mln vs 11.6 mln Avg shrs 1,741,000 vs 3,581,000 12 mths Oper shr loss 1.55 dlrs vs profit 42 cts Oper net loss vs profit 2,051,000 vs 1,492,000 Revs 42.9 mln vs 45.5 mln Avg shrs 1,816,000 vs 3,581,000 NOTE: prior qtr excludes loss 229,000, or seven cts per share, for discontinued operations. 1986 qtr excludes 159,000 extraodinary loss. Excludes loss 293,000, or 16 cts per share, for 1986 and gain 651,000, or 18 cts per share, for 1985 for discontinued operations. Excludes loss 256,000 for 1986 net for extraordinary item.  
BUCKHORN INC <BKN> SEES HIGHER PROFITS IN 1987. Buckhorn Inc said itd nine million dlr backlog for orders and a less expensive operating environment should yield significant levels of operating profits for 1987. Buckhorn, a manufacturer of reusable plastic shipping and storage containers, recorded 2,051,000, or 1.55 dlrs per share, operating net loss for 1986. Buckhorn said the year's results included a 4,250,000 non-recurring expense incurred to complete major restructuring efforts and to defend against the hostile tender offer from Ropak Corporation.  
CCR VIDEO 1ST QTR NOV 30 NET. Shr 2-1/5 cts vs nil Net 156,726 vs 11,989 Sales 1,157,883 vs 890,138  
DEL E. WEBB INVESTMENT <DWPA> 4TH QTR NET. Shr eight cts vs 16 cts Net 188,000 vs 354,000 Revs 538,000 vs 594,000 Year Shr 31 cts vs 28 cts Net 692,000 vs 617,000 Revs 2,640,000 vs 906,000 (Del E. Webb Investment Properties Inc)  
F.W. WOOLWORTH'S <Z> 1986 PROFITS RISE 21 PCT. The specialty retailing area continues to pay off for F.W. Woolworth Co, once known only as a five and dime store chain, which said its 1986 income rose 21 pct. It was the fourth consecutive year of profit increases for the New York-based retailer which was founded over 100 years ago. Woolworth's 1986 income rose to 214 mln dlrs or 3.25 dlrs per share compared with 1985's profit of 177 mln or 2.75 dlrs per share. Revenues for the year rose to 6.50 billion compared with the prior year's 5.96 billion. For the fourth quarter, the company reported profits rose 10 pct to 117 mln dlrs or 1.78 dlrs per share compared with 1985 fourth quarter results of 106 mln or 1.64 dlrs per share. Revenues rose to 2.02 billion from 1.85 billion dlrs. Roy Garofalo, Woolworth vice president, told Reuters that income generated by the company's specialty store operations accounted for 52 pct of the parent company's 1986 profits. He said the company now has 4,700 specialty stores operating under 30 different names. Woolworth plans to open 650 more specialty stores in 1987. At this time last year, it operated 4,100 specialty stores, Garofalo said. Garofalo said the largest specialty chain operated by Woolworth is Kinney Shoe Stores, followed by the Richman apparel unit. Among other units are Little Folk Shop, a chain of discount children's apparel stores; The Rx Place, a discount drug, health and beauty aid operation; and Face Fantasies, which sells cosmetics. There are currently about 1,700 Woolworth general merchandise stores operating worldwide, of which 1,200 are in the United States. Harold Sells, chairman and chief executive of Woolworth, said in a statement, "These results are especially gratifying as they are an improvement over last year's record earnings." Sells that it was the fourth successive year earnings in each quarter improved over the corresponding year-earlier period. Woolworth's variety store operations were hard hit in the 1970's and early 1980's by the quickly growing discount store industry. In an attempt to compete in the 1970's, Woolworth opened a discount general store chain, Woolco, and J. Brannam, a discount apparel chain. Both were failures in the United States, although Woolco still operates in Canada. In 1985, however, Woolworth changed its strategy and announced that it would operate specialty stores. At that time, the company said it would create 14 new groups of such stores. Specialty stores generally have higher sales per square foot than general merchandise stores.  
ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS. Shr loss 72 cts vs loss 1.48 dlrs Net loss 4,466,006 vs loss 9,091,688 Revs 608,181 vs 1,280,727 Six Mths Shr loss 77 cts vs loss 1.51 dlrs Net loss 4,752,455 vs loss 9,265,457 Revs 1,444,149 vs 2,791,188  
PREMIER INDUSTRIAL CORP <PRE> REGULAR DIVIDEND. Qtly div 11 cts vs 11 cts in prior qtr Payable April 10 Record March 23  
CONTINENTAL GENERAL INSURANCE <CGIC> 4TH QTR NET. Shr 20 cts vs 21 cts Net 783,564 vs 806,278 Year Shr 89 cts vs 86 cts Net 3,443,392 vs 3,242,588 Note:Full company name is Continental General Insurance Co Net includes profit from sale of securities of 155,410 dlrs, or four cts a share, and 192,896 dlrs, or five cts a share, respectively, in 1986 qtr and year, and of 12,879 dlrs, or nil per share, in 1985 qtr. Net for 1985 year includes loss from sale of securities of 315,763 dlrs, or eight cts a share.  
MARGAUX CONTROLS INC <MARGX> 3RD QTR LOSS. Shr loss 1.60 dlrs vs loss 45 cts Net loss 9,883,000 vs loss 2,744,000 Revs 1,309,000 vs 3,289,000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6,008,000 Revs 4,577,000 vs 11.9 mln NOTE: Current periods include loss of 7.5 mln dlrs from discontinued operations.  
MERCHANTS GROUP INC <MRCH> 4TH QTR OPER NET. Oper shr profit 21 cts vs loss 2.13 dlrs Oper net profit 456,000 vs loss 2,454,000 Revs 16.3 mln vs 13.1 mln Year Oper shr 1.39 dlrs vs loss 2.41 dlrs Oper net profit 1,815,000 vs loss 2,779,000 Revs 58.0 mln vs 43.8 mln NOTE: 1986 4th qtr and yr oper net exclude realized investment gains of 279,000 dlrs and 1,013,000 dlrs, respectively, which includes provision for income taxes of 238,000 dlrs and 863,000 dlrs for the periods, respectively. 1986 4th qtr and yr oper net exclude 606,000 dlrs or 38 cts per share and 2,323,000 dlrs or 1.86 dlrs per share, for net operating loss carryovers. 1985 4th qtr and yr oper net exclude realized investment gains of 439,000 dlrs and 666,000 dlrs respectively.  
CONTINENTAL GENERAL <CGIC> SETS STOCK DIVIDEND. Continental General Insurance Co said its board of directors declared a 10 pct stock dividend on common shares, payable April one to shareholders of record March 16. The company yesterday paid a quarterly cash dividend of 2-1/2 cts a share, unchanged from the previous quarter, to shareholders of record February 20.  
MARGAUX CONTROLS INC <MARGX> 3RD QTR DEC 28 LOSS. Shr loss 1.60 dlrs vs loss 45 cts Net loss 9,883,000 vs loss 2,744,000 Revs 1,309,000 vs 3,289,000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6,008,000 Revs 4,577,000 vs 11.9 mln Note: 1986 net losses inlcude 7,507,000-dlr charge from discontinued operations of building management system sold to Cetek System Inc on Jan 30, 1987.  
<TIVERTON PETROLEUMS LTD> NINE MTHS DEC 31 NET. Shr six cts vs five cts Net 459,131 vs 289,433 Revs 1,808,832 vs 1,680,240  
MCA INC <MCA> SETS REGULAR QTRLY PAYOUT. Qtrly div 17 cts vs 17 cts prior Pay April 13 Record March 25  
ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS. Shr loss 72 cts vs loss 1.48 dlrs Net loss 4,466,006 vs loss 9,091,688 Revs 608,181 vs 1,280,727 Avg shrs 6,194,000 vs 6,155,461 First half Shr loss 77 cts vs loss 1.51 dlrs Net loss 4,752,455 vs loss 9,265,457 Revs 1,444,149 vs 2,791,188 Avg shrs 6,174,731 vs 6,155,461 NOTE: Losses include charges of 4.0 mln dlrs in both 1986 periods vs 14.4 mln dlrs in both 1985 periods for write-down of oil and gas properties  
KASLER CORP <KASL> 1ST QTR JAN 31 NET. Shr profit three cts vs loss seven cts Net profit 161,000 vs loss 367,000 Revs 24.3 mln vs 26.5 mln  
SEAMAN FURNITURE <SEAM> IN STOCK SPLIT. Seaman Furniture Co Inc said its board declared a two-for-one split of the company's outstanding stock. It said holders of its common will receive one additional share for each share held as of March 20. It said certificates representing additional shares will be distributed as soon as possible after April 10.  
<SCOTT'S HOSPITALITY INC> 3RD QTR JAN 31 NET. Oper shr eight cts vs eight cts Oper net 5,219,000 vs 4,377,000 Revs 214.9 mln vs 182.5 mln NINE MTHS Oper shr 51 cts vs 51 cts Oper net 29.6 mln vs 27.9 mln Revs 634.5 mln vs 569.3 mln 1986 net excludes extraordinary gain of 8,031,000 dlrs or 15 cts shr. 1987 net reflects three-for-one stock split in 2nd qtr and issue of 1.5 mln subordinate voting shares in 1st qtr.  
TELXON CORP <TLXN> SEES HIGHER REVENUES. Telxon Corp reported it expects revenues for the quarter ending March 31 to be between 26 to 28 mln dlrs. The company said earnings per share for the period should be between 23 cts to 26 cts. "The company is making an announcement at this time in response to analysts fourth quarter revenues and earnings per share estimates of 29 mln to 32 mln and 24 cts to 30 cts, respecivtely," said Raymond Meyo, president and chief executive officer. Telxon recorded revenues of 24.2 mln dlrs for the quarter last year, and earnings per share of 22 cts, adjusted for a three-for-two stock split in May 1986.  
AMERICAN VANGUARD CORP <AMGD> YEAR NET. Shr 57 cts vs 27 cts Net 1,002,000 vs 470,000 Sales 15.9 mln vs 12.0 mln Note: 4th qtr figures not given.  
HARPER INTERNATIONAL INC <HNT> 3RD QTR JAN 31. Shr 12 cts vs 19 cts Net 369,000 vs 358,000 Revs 7,076,000 vs 6,712,000 Avg shrs 3,050,000 vs 1,850,000 Nine mths Shr 53 cts vs 63 cts Net 1,523,000 vs 1,158,000 Revs 22.6 mln vs 20.7 mln Avg shrs 2,852,198 vs 1,850,000  
WITCO CORP <WIT> SETS REGULAR QTLY PAYOUT. Qtly div 28 cts vs 28 cts prior Pay April one Record March 13  
<MDS HEALTH GROUP LIMITED> IN QTLY PAYOUT. Qtly div six cts vs six cts prior Pay April one Record March 23  
HARPER INTERNATIONAL INC <HNT> 3RD QTR NET. Qtr ended Jan 31 Shr 12 cts vs 19 cts Net 369,000 vs 358,000 Revs 7,076,000 vs 6,712,000 Avg shrs 3,050,000 vs 1,850,000 Nine mths Shr 53 cts vs 63 cts Net 1,523,000 vs 1,158,000 Revs 22.6 mln vs 20.7 mln Avg shrs 2,852,198 vs 1,850,000  
BURST AGRITECH INC <BRZT> YEAR NOV 30 LOSS. Net loss 705,496 vs loss 182,766 Sales 642,590 vs 1,126,315  
TELXON <TXLN> SEES SLIGHTLY HIGHER 4TH QTR NET. Telxon Corp said it expects per-share earnings for its fourth quarter ending March 31 to be about 23 cts to 26 cts on revenues of 26 mln dlrs to 28 mln dlrs. For the year-ago quarter, the company earned 22 cts a share, adjusted for a three-for-two stock split, on revenues of 24.2 mln dlrs. The company said it made the earnings estimate in response to analysts' forecasts, which it said called for per-share earnings of 24 cts to 30 cts and revenues of 29 mln dlrs to 32 mln dlrs.  
PACIFIC LIGHTING COPR <PLT> QUARTERLY DIVIDEND. Qtly div 87 cts vs 87 cts Pay Feb 17 Record Jan 20  
CETEC CORP <CEC> QUARTERLY DIVIDEND. Qtly div five cts vs five cts Pay May 22 Record May 8  
JONES MEDICAL INDUSTRIES INC <JMED> 4TH QTR NET. Shr six cts vs five cts Net 199,037 vs 135,587 Sales 1,594,895 vs 1,368,959 Avg shrs 3.1 mln vs 2.5 mln Year Shr 25 cts vs 19 cts Net 695,398 vs 446,426 Sales 5,785,365 vs 4,520,781 Avg shrs 2.8 mln vs 2.4 mln  
MAUI LAND AND PINAPPLE CO INC QUARTERLY DIVIDEND. Qtly div 12-1/2 cts vs 12-1/2 cts Pay March 31 Record Feb 27  
<TRIMAC LTD> YEAR NET. Shr nine cts vs six cts Net 3,500,000 vs 2,500,000 Revs 294.0 mln vs 351.5 mln Note: 1986 year includes tax gain of 1,700,000 dlrs  
EMPI INC <EMPI> 4TH QTR LOSS. Shr loss 25 cts vs profit 11 cts Net loss 446,005 vs profit 185,325 Sales 2.4 mln vs 2.5 mln 12 mths Shr loss 16 cts vs profit 41 cts Net loss 282,305 vs profit 709,787 Sales 10.1 mln vs nine mln  
FLORIDA PUBLIC <FPUT> SPLITS STOCK, UPS DIV. Florida Public Utilities Co said its board declared a three-for-two stock split on its common stock. It said holders of record April 15 will receive one additional share May one for each two shares held. The company also said it raised the dividend on its common stock by two cts to 33 cts a share on a pre-split basis. The dividend is payable April one to holders of record March 18.  
CITY INVESTING TRUST <CNVLZ> SETS CASH PAYOUT. City Investing Co Liquidating Trust said it declared a cash distribution of 25 cts a unit, payable April 10 to unit-holders of record April one. The trust last paid a stock distribution of General Development Corp <GDB> shares in July.  
FLORIDA COMMERCIAL BANKS INC <FLBK> DIVIDEND. Qtly div 14 cts vs 19 cts prior Pay March 31 Record March 16 Note: Quarterly dividend for prior quarter included special payout of five cts a share.  
<TIMMINCO LTD> YEAR NET. Oper shr 33 cts vs 33 cts Oper net 3,330,000 vs 2,969,000 Revs 95.9 mln vs 92.0 mln Avg shrs 8,610,068 vs 7,603,219 Note: 1986 net excludes extraordinary gain of 577,000 dlrs or seven cts shr vs yr-ago gain of 71,000 dlrs or one ct shr.  
<UNITED FIRE AND CASUALTY> 4TH QTR NET. Shr profit 31 cts vs loss 20 cts Net profit 1,044,424 vs loss 515,425 Avg shrs 3,406,841 vs 2,544,531 Year Shr profit 2.83 dlrs vs profit 42 cts Net profit 8,811,142 vs profit 1,058,503 Avg shrs 3,111,464 vs 2,544,531 Note: Full company name is United Fire and Casualty Co Net includes realized gains of 93,551 dlrs and 764,177 dlrs, respectively, in 1986 qtr and year, and of 92,075 dlrs and 972,935 dlrs, respectively, in 1985 qtr and year. 1985 results restated for three-for-two stock split. Net income for 1985 has been restated due to a change in the method used in computing deferred acquisition costs. 1986 results include the effect of a stock offering resulting in the issuance of an additional 862,500 shares of common stock.  
<POWER CORP OF CANADA> 4TH QTR NET. Oper shr 30 cts vs 24 cts Oper net 38,686,000 vs 28,384,000 Revs 42.3 mln vs 31.2 mln Year Oper shr 1.05 dlrs vs 94 cts Oper net 136,594,000 vs 110,831,000 Revs 153.3 mln vs 125.1 mln Note: Fourth quarter results exclude extraordinary and other items which raised final 1986 net to 62,485,000 dlrs or 49 cts a share and lowered final 1985 net to 18,941,000 dlrs or 16 cts a share in 1985. Full-year results exclude extraordinary and other items which raised final 1986 net to 237,961,000 dlrs or 1.87 dlrs per share and 1985 net to 152,049,000 or 1.29 dlrs per share. 1985 results restated to reflect June, 1986 two-for-one stock split.  
VENDO CO <VEN> 4TH QTR LOSS. Shr loss 1.48 dlrs vs loss 36 cts Net loss 4,036,000 vs loss 983,000 Sales 16.6 mln vs 17 mln 12 mths Shr loss 1.88 dlrs vs profit 71 cts Net loss 5,113,000 vs profit 1,904,000 Sales 85.4 mln vs 88.5 mln Note: Prior year net includes extraordinary loss of 298,000 dlrs in qtr and extraordinary profit of 718,000 dlrs in year.  
LAWSON PRODUCTS INC <LAWS> RAISES QTLY PAYOUT. Qtly div seven cts vs six cts prior Pay April 17 Record April three  
KANEB ENERGY <KEP> MAY OMIT FUTURE PAYOUTS. Kaneb Energy Partners Ltd said it may be forced to omit or lower future quarterly cash distributions because of a contract dispute with two major customers and the continued slump in oil and gas prices. The partnership said, however, that it will pay a regular quarterly distribution of 60 cts a unit on April 15 to holders of record March 31.  
BRASCAN LTD <BRS.A> 4TH QTR NET. Shr 50 cts vs 46 cts Net 43.0 mln vs 34.8 mln YEAR Shr 1.55 dlrs vs 1.38 dlrs Net 136.8 mln vs 112.9 mln Note: Holding company.  
FLORIDA COMMERCIAL BANKS INC <FLBK> QTLY DIV. Qtly div 14 cts vs 14 cts prior Payable March 31 Record March 16  
<CHAUVCO RESOURCES LTD> YEAR NET. Shr 16 cts vs 35 cts Net 476,000 vs 929,000 Revs 3,000,000 vs 3,600,000  
ZENITH LABS <ZEN> WILL REPORT 4TH QTR LOSS. Zenith Laboratories Inc said the company will report a fourth quarter loss, and the amount will be determined on completion of its year end audit. The company did not elaborate further. For the third quarter ended Sept 30, 1986, Zenith reported a loss of 3,451,000 dlrs or 16 cts per share, adjusted for a May 1986 2-for-1 stock split. The company also said it received Food and Drug Administration approval to market Cefadroxil, a generic version of an antibiotic with domestic sales exceeding 50 mln dlrs in 1986. Zenith said it will not market the drug until "questions relating to the applicability of certain patents have been resolved."  
<DEXLEIGH CORP> SIX MTHS DEC 31 NET. Shr four cts vs three cts Net 4,505,000 vs 4,493,000 Revs 23.3 mln vs 21.4 mln  
ROCKWELL <ROK> SEES IMPROVEMENT IN 1987. Rockwell International Corp continues to expect significant improvement in 1987 results, despite the somewhate disappointing performance of one of its business segments, President Donald Beall told Reuters. Rockwell reported net earnings in its first quarter ended December 31 of 149.4 mln dlrs, or 1.05 dlrs per share, compared to 125.8 mln dlrs, or 84 cts per share a year ago. Operating earnings, however, were off about four pct, and analysts have attributed the decline to Rockwell's Allen-Bradley unit, which has suffered from weakness in the industrial automation market. "It is in a soft market now, but we are not concerned. It is moving forward with market development and is enhancing market share," Beall said of Allen-Bradley unit. Beall, who was in Los Angeles to address a Technology management conference, said first quarter sales for the Allen-Bradley unit were flat as compared to a year earlier. He said the company does not break out operating earnings by unit on a quarterly basis. Beall said the recent trend toward cost sharing in the research and development phase of government contracts should not have a major impact on Rockwell's near-term performance. He noted, however, the increasing focus on cost sharing could limit technological innovation. "I worry that we are heading into a period of misuse of contracting approaches too early in the development stages of important military contracts," Beall said, adding, "long-term, we have a very serious problem." In addition, Beall told the conference the greatest competitive threat to defense contractors is in defense electronics, due to the government's attempt to take advantage of competitively priced products made outside the U.S.  
MICKELBERRY CORP <MBC> SETS QTLY PAYOUT. Qtly div 1-1/2 cts vs 1-1/2 cts prior Pay March 31 Record March 13  
<WESTAR MINING LTD> 4TH QTR LOSS. Shr not given Oper loss 5,900,000 vs profit 9,300,000 Revs 105.3 mln vs 131.2 mln Year Shr not given Oper loss 21.7 mln vs profit 34.7 mln Revs 370.7 mln vs 515.1 mln Note: 67 pct owned by <British Columbia Resources Investment Corp> Note continued: 1986 qtr excludes extraordinary loss of 3.6 mln dlrs versus loss of 294.0 mln dlrs in prior year 1986 year excludes extraordinary loss of 79.1 mln dlrs versus loss 221.5 mln dlrs in prior year  
WILLIAMS COS <WMB> YEAR LOSS. Shr loss 6.97 dlrs vs profit 92 cts Net loss 240 mln vs profit 31.6 mln Revs 1.9 billion vs 2.5 billion NOTE: 1986 includes loss of 250 mln dlrs or 7.27 dlrs a share from discontinued operations and writedowns of holdings in Texasgulf Inc. 1985 restated.  
GEONEX SEES SALES HURT BY PRODUCTION SHIFT. Geonex Corp <GEOX> said BellSouth Corp <BLS> unit Southern Bell Telephone and Telegraph Co's decision to postpone the start up of new conversion assignments at Geonex's Chicago Aerial Survey unit could negatively affect its fiscal 1987 revenues. The company said it had expected higher revenues from the records conversion work, but it now foresees revenues from Southern Bell work at about eight mln dlrs, the same level as last fiscal year. Geonex said Southern Bell will let CAS continue work in progress and it expects to perform mechanized posting and records conversion for Southern Bell through 1989. But, it added that the Southern Bell decision has forced it to pursue opportunities with other telephone companies and municipalities to replace the Southern Bell work.  
NWA INC 4TH QTR SHR PROFIT 45 CTS VS LOSS NINE CTS.  NWA INC 4TH QTR SHR PROFIT 45 CTS VS LOSS NINE CTS  
(CRIME CONTROL INC) 4TH QTR NET LOSS. Shr loss 2.03 dlrs vs loss 85 cts Net loss 10,742,113 vs loss 3,700,712 Revs 8,027,065 vs 8,689,008 Avg shrs 5.3 mln vs 4.4 mln Year Shr loss 2.45 dlrs vs loss 1.73 dlrs Net loss 11,607,104 vs loss 7,442,825 Revs 32.6 mln vs 33.2 mln Avg shrs 4.7 mln vs 4.3 mln NOTE: 1986 net loss includes a fourth quarter charge of 10.5 mln dlrs from writeoffs of certain assets. 1985 net loss includes a charge of about 2.3 mln dlrs from settlement of class action lawsuit.  
CASTLE AND COOKE INC <CKE> 4TH QTR LOSS. Shr loss 76 cts vs loss 21 cts Net loss 31.9 mln vs loss 3,288,000 Revs 380.2 mln vs 311.5 mln Avg shrs 47.1 mln vs 41.2 mln Year Shr profit 56 cts vs profit 56 cts Net profit 43,925,000 vs profit 46,433,000 Rev 1.74 billion vs 1.60 billion Avg shares 43,602,000 vs 41,014,000 NOTE: Fourth quarter includes after tax loss from discontinued Flexi-Van operations of 33.9 mln dlrs. Primary earnings per share data calculated after deducting preferred dividend requirements.  
VOICEMAIL INTERNATIONAL INC 4TH QTR LOSS. Shr loss 21 cts vs loss 14 cts Net loss 838,069 vs loss 433,875 Revs 1,080,068 vs 1,793,398 Avg shrs 4,004,826 vs 3,172,537 12 mths Shr loss 39 cts vs 11 cts Net loss 1,387,500 vs loss 334,463 Revs 6,456,882 vs 5,605,680 Avg shrs 3,542,217 vs 3,071,456  
MOLECULAR GENETICS INC <MOGN> 4TH QTR LOSS. Oper shr loss 22 cts vs loss 13 cts Oper net loss 1,712,916 vs loss 769,539 Revs 2,292,972 vs 2,157,895 Avg shrs 7,961,602 vs 6,200,293 Year Oper shr loss 53 cts vs loss 45 cts Oper net loss 3,562,151 vs 2,543,366 Revs 9,117,311 vs 8,251,136 Avg shrs 7,169,871 vs 6,186,51 NOTE: Current year net both periods excludes charge 430,649 dlrs from cumulative effect of accounting change for patents. 1986 net both periods includes charge of about 458,000 dlrs from severance obligations. 1986 year net includes charge 156,000 dlrs from writeoff of seed commitments.  
MERRIMAC INDUSTRIES INC <MMAC> 4TH QTR NET. Shr five cts vs 29 cts Net 92,641 vs 466,668 Sales 4,448,011 vs 4,122,301 Year Shr 34 cts vs 1.16 dlrs Net 553,310 vs 1,864,417 Sales 16.3 mln vs 16.7 mln  
B.C. RESOURCES HAS AGREEMENT ON CREDIT FACILITY. <British Columbia Resources Investment Corp>, earlier reporting higher full year operating losses, said it reached agreement in principle with five lenders providing for a 360 mln dlr credit facility over a four year term. The company said the credit facility is extendable under certain circumstances, with annual principal payments of five mln dlrs. The agreement is subject to certain lender approvals and completion of formal documentation. It earlier reported 1986 losses before extraordinary items rose to 26.4 mln dlrs from year-ago 7.2 mln dlrs. B.C. Resources also said dividends on its series 2 preferred shares and exchangeable preferred shares will remain suspended. However, payment will be made on account of the quarterly dividend on the exchangeable preferred shares by the company's trustee from a deposit account, B.C. Resources said. Sufficient funds should be available to pay full amount of the March 31, 1987 dividend to exchangeable preferred shareholders, with payment expected in early April to shareholders of record March 31, the company said. If future dividends are not declared after the April exchangeable preferred quarterly payout, future payment will depend on the amount of dividends received from Westcoast Transmission Co <WTC>, B.C. Resources said. The company said its increased fourth quarter and full year operating losses primarily resulted from lower oil prices and a four month labor shutdown at its Balmer coal mine in British Columbia. B.C. Resources also recorded a 99.9 mln dlr extraordinary loss, which included losses on disposition of North Sea oil and gas interests by 67 pct owned <Westar Mining Ltd>. B.C. Resources' 1986 extraordinary charge also included a writedown of its investment in Westar Petroleum. Gains on the sales of Westar Timber's Skeena and Celgar pulp mills and Terrace sawmill partially offset the extraordinary loss, the company said. The company said the asset sales have eliminated B.C. Resources' long term financing commitment in the North Sea and exposure to the fluctuating pulp market. It also said it cut long term debt in 1986 to 900 mln dlrs from 1.3 billion dlrs at year-end 1985, and management changes and staff cuts have significantly reduced costs.  
CML GROUP INC <CMLI> 2ND QTR JAN 31 NET. Shr 72 cts vs 58 cts Net 4,791,000 vs 3,803,000 Sales 83.0 mln vs 72.0 mln Avg shrs 6,668,309 vs 6,545,722 1st half Shr 88 cts vs 70 cts Net 5,872,000 vs 4,614,000 Sales 141.6 mln vs 121.8 mln Avg shrs 6,669,488 vs 6,525,051  
DRESS BARN INC <DBRN> 2ND QTR JAN 24 NET. Shr 30 cts vs 21 cts Net 3,358,000 vs 2,276,000 Sales 43.3 mln vs 33.5 mln 1st half Shr 60 cts vs 42 cts Net 6,654,000 vs 4,638,000 Sales 86.6 mln vs 66.4 mln NOTE: Share adjusted for three-for-two stock split in May 1986.  
WILLIAMS <WMB> HAS 4TH QTR CHARGE. Williams Cos said a fourth quarter charge of 250 mln dlrs from discontinued operations and writedowns contributed to a 1986 net loss of 240 mln dlrs or 6.97 dlrs a share against earnings of 31.6 mln dlrs or 92 cts in 1985. The loss in the quarter was 232.3 mln dlrs or 6.75 dlrs against income of 10.7 mln dlrs or 31 cts a year ago. Revenues in the quarter fell to 521.1 mln dlrs from 716.9 mln and in the year fell to 1.9 billion dlrs from 2.5 billion in 1985. Williams also said the previously announced sale of its Agrico Chemical Co unit to Freeport-Mcmoran Resource Partners Ltd has cleared antitrust review and should close next week. The 1987 first quarter will include proceeds from the Agrico sale, for 250 mln dlrs cash at closing plus deferred payments, and proceeds of 320 mln dlrs from the sale of a stake in Peabody Holding Co, completed in January. In the 1986 first quarter, Williams reported net of 14.2 mln dlrs or 41 cts a share on sales of 796.4 mln dlrs. Williams said the charges in the current year were related to an ongoing restructuring. The company said the restructuring moves had improved its balance sheet and improved the outlook for future stability and growth in earnings. Operating profit at the company's Northwest Pipeline Corp unit fell 4.5 pct to 150 mln dlrs from lower sales. The Williams Natural Gas unit had operating profit of 50.5 mln dlrs compared to 90.9 mln dlrs on lower sales volumes. Profit at Williams Gas Marketing rose to 26 mln dlrs from about 22 mln and the William Pipe Line Co had operating profit of 49.4 mln dlrs versus 63.6 mln dlrs a year ago.  
PERRY DRUG STORES INC <PDS> 1ST QTR JAN 31 NET. Shr 13 cts vs 37 cts Net 1,300,000 vs 3,700,000 Sales 189 mln vs 163 mln  
NWA INC <NWA> 4TH QTR NET. Shr profit 45 cts vs loss nine cts Net profit 9.8 mln vs loss two mln Revs 1.15 billion vs 631.2 mln Year Shr profit 3.26 dlrs vs profit 3.18 dlrs Net profit 76.9 mln vs profit 73.1 mln Revs 3.59 billion vs 2.66 billion  
CAMCO INC <CAM> SETS QUARTERLY. Qtly div 11 cts vs 11 cts prior Pay April 14 Record March 17  
USF AND G CORP <FG> RAISES QUARTERLY DIVIDEND. Qtly div 62 cts vs 58 cts in the prior quarter Payable April 30 Record March 20  
<BRNF LIQUIDATING TRUST> SETS DISTRIBUTIONS. BRNF Liquidating Trust said trustees declared a 13th liquidating dividend of 1.10 dlrs per unit, payable April One to holders of record of its Series A, B and C certificates on March 18. The trust had paid a 12th liquidating distribution on January 15 amounting to 1.750 dlrs on Series A, 1.815 dlrs on Series B and 1.765 dlrs on Series C certificates.  
STANLINE INC <STAN> 1ST QTR JAN 31 NET. Shr 20 cts vs 15 cts Net 345,970 vs 257,252 Revs 14.0 mln vs 13.4 mln NOTE: Share adjusted for five pct stock dividend in December 1986.  
SWIFT ENERGY CO <SFY> 4TH QTR NET. Shr 12 cts vs eight cts Net 485,866 vs 316,193 Revs 1,741,508 vs 1,440,154 Year Shr 28 cts vs 20 cts Net 1,108,314 vs 778,197 Revs 5,073,178 vs 3,687,160  
BROWNING-FERRIS INDUSTRIES INC <BFI> IN PAYOUT. Qtly div 20 cts vs 20 cts prior Pay April 10 Record March 20  
VEREINS- UND WESTBANK TO REORGANIZE NETWORK. und Westbank AG <VHBG.F> plans to streamline its branch network to improve its distribution of financial services, management board member Eberhard-Rainer Luckey said. He told a news conference on 1986 results that branches in Hamburg and Schleswig-Holstein would be merged or closed, a branch in Frankfurt opened and that the bank was considering opening a branch in London. Luckey said the bank's total operating profits rose nearly 29 pct in 1986. Parent bank net profit rose to 47.7 mln from 42.2 mln and the dividend remained unchanged at 12 marks. The group balance sheet, including for the first time VereinWest Overseas Finance (Jersey), rose 9.2 pct to 17.9 billion marks, Luckey said. The parent bank balance sheet rose 89 mln marks to 13.2 billion, while business volume was almost unchanged at 14.8 billion. Credit volume eased to 9.1 billion from 9.2 billion while loans to companies rose seven pct. Foreign business and securities trading turnover also increased. Higher earnings from trading on the bank's own account contributed to record operating profits. Net interest income rose on firmer interest margins by 16.1 mln marks to 381.6 mln. Net commission income rose 6.6 mln to 156.7 mln, Luckey said. Foreign commercial business was influenced by a fall in West German foreign trade but earnings were still satisfactory. The bank's exposure in Latin America was less than two pct of its total foreign credit and in Africa less than one pct. The bank continued to sell some of its exposure in 1986, and will also continue to stock up risk provisions, he said.  
CASTLE AND COOKE <CKE> TAKES FOURTH QTR LOSS. Castle and Cooke Inc said it would take a fourth quarter after-tax loss of 33.9 mln dlrs from the previously reported sale of its Flexi-Van container leasing business to Itel Corp <ITEL> for about 215 mln dlrs. Earlier, the company reported a loss for the fourth quarter ended January 3 of 31.9 mln dlrs, or 76 cts a share, compared with a loss of 3.3 mln dlrs, or 21 cts per share, in 1985's fourth quarter. For the year, however, the diversified holding company reported a net profit of 43.9 mln dlrs, or 56 cts a share, versus 46.4 mln dlrs, or 56 cts a share, in 1985. David Murdock, chairman and chief executive officer, said, "Both our food business and our real estate operations increased their earnings during the year (1986)." But, he added that Flexi-Van's 1986 results were hit by depressed daily rental rates for leased equipment caused by oversupplies. The company also reported that George Elkas, formerly executive vice president,  has been named president and chief operating officer of Flexi-Van Corp, while William Burns has been named executive vice president of Flexi-Van.  
WAL-MART STORES INC 4TH QTR SHR 65 CTS VS 47 CTS.  WAL-MART STORES INC 4TH QTR SHR 65 CTS VS 47 CTS  
<DEVTEK CORP> 2ND QTR JAN 31 NET. Shr 14 cts vs nine cts Net 1,180,000 vs 640,000 Revs 25.6 mln vs 20.1 mln Six mths Shr 26 cts vs 12 cts Net 2,103,000 vs 853,000 Revs 44.8 mln vs 33.0 mln  
SAXTON INDUSTRIES LTD <SAXIF> YEAR NET. Shr 13 cts vs 41 cts Net 1,079,100 vs 3,535,205 Revs 13.6 mln vs 16.2 mln Note: Current results for 16 months after change in fiscal year end to December 31 from August 31  
TORONTO SUN PLANS TWO-FOR-ONE STOCK SPLIT. <Toronto Sun Publishing Corp> said it planned a two-for-one split of its common shares, subject to regulatory approval and approval by shareholders at the April 21 annual meeting.  
SERVO CORP OF AMERICA <SCA> 1ST QTR JAN 31 NET. Shr 43 cts vs 41 cts Net 316,000 vs 298,000 Sales 4,857,000 vs 4,543,000  
ELECTRO-NUCLEONICS INC <ENUC> 2ND QTR DEC 31. Shr loss 1.77 dlrs vs profit 15 cts Net loss 8,036,000 vs profit 576,000 Sales 16.2 mln vs 17.2 mln Avg shrs 4,539,437 vs 3,816,580 1st half Shr loss 1.96 dlrs vs profit 26 cts Net loss 8,231,000 vs profit 996,000 Sales 30.9 mln vs 32.2 mln Avg shrs 4,205,707 vs 3,814,141 NOTE: Current half net includes 68,000 dlr tax credit. Current year net both periods includes 6,700,000 dlr writedown of inventory of clinical chemistry products.  
WAL-MART STORES INC <WMT> 4TH QTR JAN 31 NET. Shr 65 cts vs 47 cts Net 184.3 mln vs 133.1 mln Sales 3.85 billion vs 2.77 billion Year Shr 1.59 dlrs vs 1.16 dlrs Net 450.1 mln vs 327.5 mln Sales 11.91 billion vs 8.45 billion  
<MIRTONE INTERNATIONAL INC> 1ST QTR DEC 31 NET. Shr two cts vs two cts Net 407,396 vs 376,243 Revs 5,341,353 vs 4,292,819  
PYRO ENERGY CORP <BTU> YEAR NET. Shr 36 cts vs 66 cts Net 4,775,000 vs 9,342,000 Revs 105.5 mln vs 130.0 mln  
UNITRODE CORP <UTR> 4TH QTR JAN 31 LOSS. Shr loss 13 cts vs profit 10 cts Net loss 1,804,062 vs profit 1,370,063 Revs 33.5 mln vs 40.4 mln 12 mths Shr loss 51 cts vs profit cts Net loss 7,030,235 vs profit 9,163,141 Revs 149.4 mln vs 167.9 mln NOTE: income before taxes for the 12 mths ended Jan 1987 includes gains 895,000 for fire insurance settlement, and unusual charges of 7,900,000 for provisions for estimated cost of severance pay for terminated workers and a one-time writedown of inventory and equipment.  
BUEHLER INTERNATIONAL INC <BULR> 4TH QTR NET. Shr five cts vs 20 cts Qtly div two cts vs two cts prior Net 223,000 vs 1,418,000 Sales 15.3 mln vs 17.1 mln Year Shr 61 cts vs 81 cts Net 3,106,000 vs 5,940,000 Sales 63.0 mln vs 59.5 mln NOTE: 1986 net includes tax credits of 63,000 dlrs in quarter and 1,365,000 dlrs in year. 1986 net both periods includes 500,000 dlr pretax inventory writedown. Dividend pay March 27, record March 5.  
STANHOME INC <STH> RAISES QUARTERLY TWO CTS. Qtly div 23 cts vs 21 cts prior Pay April 1 Record March 16  
INSTRON CORP <ISN> SETS QUARTERLY. Qtly div three cts vs three cts prior Pay April 2 Record March 16  
IDEAL SCHOOL SUPPLY CORP <IDEL> 4TH QTR NET. Oper shr 10 cts vs eight cts Oper net 325,000 vs 228,000 Sales 7,070,000 vs 6,483,000 Avg shrs 3,313,000 vs three mln Year Oper shr 69 cts vs 51 cts Oper net 2,124,000 vs 1,536,000 Sales 31.2 mln vs 22.7 mln Avg shrs 3,071,000 vs three mln NOTE: 1986 net both periods includes 72,000 dlr tax credit.  
SALOMON INC <SB> SETS REGULAR QUARTERLY. Qtly div 16 cts vs 16 cts prior Pay April One Rcord March 20  
FIRST UNION <FUR> LEAVES DIVIDEND UNCHANGED. First Union Real Estate Investments said its board left the quarterly dividend unchanged at 37-1/2 cts per share, payable April 30, record March 31. The trust, which has raised its quarterly dividend frequently in the past two years and in the first quarter in both years, said the Tax Reform Act of 1986 has limited its flexibility on dividends, and trustees will now consider the appropriateness of any dividend increases only during the later quarters of the year.  
RYKOFF-SEXTON INC <RYK> 3RD QTR JAN 31 NET. Shr 21 cts vs 28 cts Net 1,456,000 vs 1,925,000 Sales 258.7 mln vs 290.2 mln Nine Mths Shr 77 cts vs 1.10 dlrs Net 5,384,000 vs 7,658,000 Sales 804.3 mln vs 760.1 mln  
SYSTEM SOFTWARE ASSOCIATES <SSAX> 1ST QTR NET. Periods end January 31, 1987 and 1986 Shr 12 cts vs nine cts Net 507,000 vs 362,000 Revs 5,010,000 vs 3,558,000 NOTE: System Software Associates Inc is full name of company.  
GEICO CORP <GEC> RAISES QTRLY DIVIDEND. Qtrly div 34 cts vs 27 cts prior Pay March 31 Record March 16  
STANLEY WORKS <SWK> SETS QUARTERLY. Qtly div 19 cts vs 19 cts prior Pay March 31 Record March 12  
NOVELL INC <NOVL> 1ST QTR JAN 31 NET. Shr 31 cts vs 20 cts Net 3,541,000 vs 2,071,000 Sales 29.9 mln vs 14.5 mln Avg shrs 11.6 mln vs 10.4 mln NOTE Fourteen vs 13-week periods.  
BROWN-FORMAN <BFDB> TO CHANGE RECORD DATES. Brown-Forman Inc said at the suggestion of the American Stock Exchange it has changed the record date for the 28 ct per share quarterly dividend on its Class A and Class B common stock that is payable April One to March 20 from March 13, to coincide with the record date for a three-for-two stock split declared February 26. It said the record date for the dividend on its four pct cumulative preferred stock has also been changed to March 20 from March 13.  
GOODYEAR TIRE <GT> DETAILS 1986 TAX REFUND. Goodyear Tire and Rubber Co said its 1986 results include a tax refund of 75.7 mln dlrs from the costs of restructuring the company in a successful defense against a takeover attempt by James Goldsmith. Chairman Robert Mercer said, "Heavy restructuring costs related to the takeover attempt combined with government tax incentives for investments ... resulted in this federal tax refund." The refund was included but not broken out in its initial 1986 results, a spokesman said. It reported 1986 net income of 124.1 mln dlrs against 412.4 mln dlrs a year earlier.  
GREAT NORTHERN NEKOOSA <GNN> ANNOUNCES SPLIT. The Great Northern Nekoosa Corp said it will recommend to shareholders a two-for-one common stock split. The company said it will make the proposal to shareowners at its annual mmeting May 6 in Dothan, Ala., near the company's Great Southern Paper division operations. In conjunction with the stock split proposal, the shareowners will be asked to approve an increase in the authorized common stock from 60 mln to 150 mln shares, the company said. The company said it will propose an increase in its dividend rate if the split is approved effective with the June payment. The company said the present rate on GNN common is 43 cts per share. The company said it would recommend a quarterly rate of 23 cts a share on the split stock. This would be equal to a dividend of 46 cts a share on the present common, seven pct higher than the current rate. The company said it had increased the dividend by 13 pct last December. Great Northern Nekoosa's last common stock split, a three-for-two, was in December 1983, it said. As of Dec 31, 1986, there were 26,661,770 shares of GNN common stock outstanding, according to the company.  
EQUITABLE OF IOWA COS <EQICA> 4TH QTR NET. Oper shr 78 cts vs 51 cts Oper net 7,030,000 vs 4,944,000 Revs 126.6 mln vs 120.9 mln Year Oper shr 1.59 dlrs vs 89 cts Oper net 14.7 mln vs 9,864,000 Revs 425.1 mln vs 416.9 mln NOTE: Net excludes realized gains on investment of 73,000 dlrs vs 4,224,000 dlrs in quarter and 6,253,000 vs 14.5 mln dlrs in year. Net excludes discontinued Massachusetts Casualty operations loss 5,180,000 dlrs vs gain 778,000 dlrs in quarter and gain 9,214,000 dlrs vs gain 3,504,000 dlrs in year.  
CORROON AND BLACK CORP <CBL> RAISES QUARTERLY. Qtly div 21 cts vs 16-1/4 cts prior Pay April One Record March 17  
GROSSMAN'S INC <GROS> 4TH QTR LOSS. Oper shr loss nine cts vs profit 12 cts Oper net loss 1,791,000 vs profit 2,336,000 Sales 242.9 mln vs 225.8 mln Year Oper shr profit 15 cts vs loss 17 cts Oper net profit 2,925,000 vs loss 3,324,000 Sales 1.01 billion vs 875.6 mln NOTE: Net includes discontinued operations gain 2,437,000 dlrs vs loss 190.0 mln dlrs in quarter and losses 75.6 mln dlrs vs 227.7 mln dlrs in year. Net includes loss 294,000 dlrs vs nil in quarter and gain 224.8 mln dlrs vs loss 1,750,000 dlrs in year from settlement of liabilities under plan of reorganization from Chapter 11 bankruptcy. 1986 quarter net includes 2,300,000 dlr provision for loss on future store closings offset by reduction in pension liabilities.  
WEBCOR ELECTRONICS INC <WER> 3RD QTR DEC 31. Shr loss 51 cts vs loss 44 cts Net loss 1.8 mln vs loss 1.5 mln Revs 3.1 vs 5.4 mln Nine months Shr loss 1.16 dlrs vs loss 1.33 dlrs Net loss 4.0 mln vs loss 4.6 mln Revs 9.9 mln vs 12.3 mln  
COMMUNICATIONS SYSTEMS INC <CSII> 4TH QTR NET. Shr 12 cts vs 10 cts Net 613,986 vs 534,093 Revs 9,494,570 vs 7,591,564 Year Shr 41 cts vs 59 cts Net 2,151,130 vs 3,111,317 Revs 35.9 mln vs 33.7 mln NOTE: 1986 net includes gains from discontinued operations equal to three cts compared with nine cts in 1985.  
WEBCOR ELECTRONICS <WER> IN TECHNICAL DEFAULT. Webcor Electronics Inc said it remains in technical and payment default under its revolving credit agreement and in technical default under certain other obligations to its lender. Although its lender has not enforced its right to demand payment of the debt in full, it continues to reserve its right to do so at any time, it said. Earlier, Webcor reported a third quarter net loss of 1.8 mln dlrs and nine months net loss of 4.0 mln dlrs.  
PICO PRODUCTS INC <PPI> 2ND QTR JAN 31. Shr profit three cts vs loss nine cts Net profit 103,664 vs loss 326,675 Revs 7.6 mln vs 6.9 mln Six months Shr loss two cts vs loss 15 cts Net loss 78,246 vs loss 522,868 Revs 14.7 mln vs 12.9 mln NOTE:1986 net includes gain of 43,185 or one cts in 2nd qtr and six months for discount on early long-term debt repayment.  
<ALGOMA CENTRAL RAILWAY> 4TH QTR NET. Oper shr 36 cts vs 39 cts Oper net 1,391,000 vs 1,485,000 Revs 61.6 mln vs 58.5 mln YEAR Oper shr 70 cts vs 1.16 dlrs Oper net 2,677,000 vs 4,410,000 Revs 207.6 mln vs 200.2 mln Note: 1986 net excludes extraordinary loss of 297,000 dlrs or eight cts shr vs yr-ago gain of 514,000 dlrs or 13 cts shr.  
GENOVA INC <GNVA> 1ST QTR DEC 27 NET. Oper shr profit four cts vs loss four cts Oper net profit 151,448 vs loss 170,709 Sales 11.5 mln vs 9,581,406 NOTE: Prior year net includes 123,650 dlr tax credit but excludes 52,409 dlr gain on early debt retirement.  
SUPREME EQUIPMENT/SYSTEMS CORP <SEQP> 2ND QTR. Shr 61 cts vs 18 cts Net 670,000 vs 194,000 Revs 10.7 mln vs 10.4 mln Six months Shr 73 cts vs 35 cts Net 798,000 vs 377,000 Revs 19.5 mln vs 19.8 mln NOTE:1987 net includes gain of 362,000 dlrs in 2nd qtr and 431,000 dlrs in six months from tax loss carryforward.  
GULF APPLIED TECHNOLOGIES INC <GATS> 4TH QTR. Oper shr loss five cts vs loss 24 cts Oper net loss 165,000 vs loss 802,000 Revs 4,988,000 vs 3,101,000 Year Oper shr loss 13 cts vs loss 1.33 dlrs Oper net loss 454,000 vs loss 4,407,000 Revs 23.1 mln vs 8,937,000 NOTE: Results restated for discontinued operations. 1986 net both periods excludes 143,000 dlr tax credit. Net excludes gains from discontinued pipelines and terminals operations of 216,000 dlrs vs 99,000 dlrs in quarter and 527,000 dlrs vs 296,000 dlrs in year.  
VAN DORN CO <VDC> 4TH QTR NET. Shr 55 cts vs 80 cts Net 2,517,443 vs 3,633,217 Revs 79.1 mln vs 76.3 mln 12 mths Shr 2.57 dlrs vs 3.41 dlrs Net 11.7 mln vs 15.4 mln Revs 305.1 mln vs 314.3 mln  
FIELDCREST CANNON INC <FLD> SETS QUARTERLY. Qtly div 17 cts vs 17 cts prior Pay March 31 Record March 17  
KANEB SERVICES INC <KAB> 4TH QTR LOSS. Oper shr loss 1.05 dlrs vs profit nine cts Oper net loss 30.5 mln vs profit 3,930,000 Revs 23.9 mln vs 45.6 mln 12 mths Oper shr loss 5.30 dlrs vs profit 34 cts Oper net loss 155.8 mln vs profit 16.0 mln Revs 113.7 mln vs 178.8 mln Note: Oper excludes loss from discontinued operations of 9,127,000 dlrs vs 12.4 mln dlrs for qtr and 28.4 mln dlrs vs 960,000 dlrs for 12 mths. Note: Oper includes writedown of offshore drilling equipment of 5,070,000 dlrs for qtr and 27.9 mln dlrs for 12 mths. Also includes writedowns of oil and gas assets and tubular goods inventory of 82.2 mln dlrs and 4,246,000 dlrs, respectively, for 12 mths.  
SUSPENSIONS/PARTS INDUSTRIES LTD <SPILF> YEAR. Shr 33 cts vs 60 cts Net 1.1 mln vs 1.7 mln Revs 11.7 mln vs 10.6 mln NOTE:Full name is Suspensions and Parts Industries Ltd.  
MITCHELL ENERGY AND DEVELOPMENT CORP <MND>PAYOUT. Qtly div six cts vs six cts prior Pay April Two Record March 18  
FROST AND SULLIVAN INC <FRSL> 2ND QTR JAN 31. Shr profit 12 cts vs loss two cts Net profit 182,173 vs loss 28,977 Revs 4,483,047 vs 3,994,808 1st half Shr profit 14 cts vs loss eight cts Net profit 221,376 vs loss 120,435 Revs 8,270,947 vs 7,150,265  
CRI INSURED <CII> TO SET SPECIAL DISTRIBUTION. CRI Insured Mortgage Investments Inc said its advisor will recommend a special distribution of 50 cts per share due to the sale of a federally insured first mortgage on Park Meadows I in Madison, Wis., for 4,267,871 dlrs. It said it received a 3,695,465 dlr return of capital and 572,406 dlrs in income on the sale, and the 50 ct distribution would represent a 43.294 ct return of principal and a 6.706 ct capital gain and would be payable June 30 to holders of record May 31.  
KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS. Unit loss one ct Net loss 186,000 Revs 10.7 mln 11 mths Unit loss 7.26 dlrs Net loss 121.4 mln Revs 46.9 mln Note: Partnership formed in February 1986. Net includes writedown of oil and gas assets of 124.8 mln dlrs for 11 mths to comply with full-cost accounting methods.  
DANAHER CORP <DHR> 4TH QTR NET. Shr 71 cts vs 43 cts Net 7,274,000 vs 4,447,000 Rev 161.6 mln vs 77.6 mln Year Shr 1.51 dlrs vs 1.32 dlrs Net 15,401,000 vs 13,525,000 Rev 454.0 mln vs 304.9 mln  
TALKING POINT/GENERAL MOTORS <GM>. General Motors Corp staged an explosive rally on Wall Street after a share buyback program announced yesterday, but analysts said GM's future remains clouded by stiff competition and erosion of market share. GM shares rose 3-1/2 to 79-1/8 in active trading. Analysts agreed that investors liked the repurchase program but they differed sharply over the carmaker's long term prospects. "I'm very positive on GM," said Jack Kirnan of Kidder Peabody and Co. "They're clearly committed to enhancing shareholder value." However, some analysts worry about how GM will pay for the buyback and whether new models will enable the carmaker to recapture lost market share. After the market had closed yesterday, GM said it would buy back 20 pct of its common stock by the end of 1990. The announcement sent investors today scrambling for GM shares, with more than 3.2 mln shares changing hands by mid-day. The buyback plan caused several analysts bullish on the stock to reiterate buy recommendations this morning, and at least one increased his earnings estimates for GM based on a good performance expected from new car models. But David Healy of Drexel Burnham Lambert Inc said the repurchase program is not a positive. "The buyback doesn't really change the earnings outlook and puts more stress on the balance sheet," he said, since GM will have to borrow money to pay for the stock purchases. The stock should settle back down to around 76, he added. Healy projects GM will earn five dlrs a share in 1987 and 5.50 dlrs in 1988, compared to 1986 earnings of 8.21 dlrs. Healy's numbers are near the low end of Wall Street estimates, which range from five dlrs to 7.80 dlrs in 1987 and from four dlrs to 10.80 dlrs in 1988. Like other analysts, Healy sees GM's share of the domestic car and truck market falling in 1987. "On balance, GM cars are not selling as well as their competitors," he said. In late February, GM car sales fell 8.6 pct from the year-ago period while competitors Ford Motor Co <F> and Chrysler Corp <C> both posted increases. But GM said February sales showed improvement over January, adding that it expects improvement in coming months. Overall, GM's share of U.S. car and truck sales should fall to around 38 or 39 pct in 1987 from 41 pct at the end of 1986, analysts said. The numbers include imports. Kidder Peabody's Kirnan said cost reductions and product improvements this year should lead to positive cash flow by the fourth quarter, which will help GM finance the buyback. "GM (stock) has been a real laggard and now it's rolling up its sleeves and getting serious. I think there's a major earnings surprise in the winds," he said. Kirnan raised his earnings estimates slightly today, in part in reaction to the announced buyback, and sees GM earning 5.65 dlrs this year and 9.75 dlrs in 1988. "The company is more concerned than ever about improving their relative valuation with respect to Ford and Chrysler," he said. Another positive for the stock is GM's dividend, currently five dlrs a share annually, which gives it a higher yield than its competitors, Kirnan said. And GM will raise the cash dividend 25 to 50 cts a share next year, he predicted. But analyst Michael Lucky of Shearson Lehman Brothers Inc said U.S. car sales will weaken, and GM's new products, if successful, will only slow but not halt the erosion of its market share. "I believe their new cars will be successful, but that will only curtail losses in market share," which will fall to around 35 pct by 1990, Lucky said. Philip Fricke of Goldman Sachs and Co falls in the middle of the bulls and bears. While he is recommending GM stock, he said results will not improve until 1988. "I'm not looking for improvement this year. This is a transition year for GM," he said. Fricke, who estimates 1987 earnings at 7.80 dlrs and 1988 at 10.80 dlrs, said cost cutting and new car models will not affect 1987 results. "But the key thing isn't so much what they earn this year. It's the momentum beyond this year that's important."  
<GOLDOME FSB> YEAR NET. Net 52.9 mln vs 21.9 mln NOTE: Company is mutual savings bank.  
BEAR AUTOMOTIVE SERVICE <BEAR> 4TH QTR OPER NET. Oper shr 18 cts vs 28 cts Oper net 1,076,000 vs 1,441,000 Sales 22.6 mln vs 21.2 mln Avg shrs 5,970,000 vs 5,080,000 Year Oper shr 55 cts vs 49 cts Oper net 3,007,000 vs 2,521,000 Sales 82.9 mln vs 73.7 mln Avg shrs 5,429,000 vs 4,484,000 Note: Full company name is Bear Automotive Service Equipment Co Oper shr excludes extraordinary profit from utilization of tax loss carryforward of 231,000 dlrs, or four cts a share and 1.2 mln dlrs, or 22 cts a share, respectively, in 1986 qtr and year, and of 441,000 dlrs, or nine cts a share and 1.1 mln dlrs, or 23 cts a share, respectively, in 1985 qtr and year. 1985 year oper net excludes loss from cumulative effect of change in accounting principle of 67,000 dlrs, or one ct a share.  
TOTAL STILL EXPECTS 1.5 BILLION FRANC 1986 LOSS. French oil group Total Cie Francaise des Petroles <TPN.PA> is still expecting a 1.5 billion franc consolidated net loss, including minority interests, for 1986, after taking account of stock losses of 7.5 billion francs, the company said in a communique after a board meeting here. In late January group president Francois-Xavier Ortoli told journalists that the slump in oil prices and the weak dollar had caused the stock depreciation, turning a consolidated net profit, before losses on stocks, of six billion francs into a consolidated net loss of 1.5 billion francs. Earlier today Armand Guilbaud, president of Total's refining and distribution subsidiary Cie de Raffinage-Distribution (CRD) Total France <RAFF.PA>, told journalists that 1986 had marked a return to profit for the subsidiary before stock depreciation. CRD made a net profit before stock depreciation and currency factors of 1.95 billion francs last year after a 1.16 billion loss in 1985. But its net loss last year, taking account of that depreciation as well as currency fluctuations, was 1.16 billion francs after a 1.05 billion loss in 1985. In 1986 CRD's sales fell 5.7 pct to 19.7 mln tonnes from 20.9 mln "due to the growth in imports by independent distributors following a relaxation of regulations," Guilbaud said. The subsidiary is expecting to cut its workforce to 6,000 this year and 5,000 in 1988 from 6,800 last year, under a job reduction scheme which will eventually save the group 600 mln francs, he said. Concerning business in 1987, he said that "January was a good month, but the situation deteriorated in February."  
STEEGO CORP <STG> 3RD QTR JAN 31 LOSS. Oper shr loss 16 cts vs loss 10 cts Oper net loss 1,569,000 vs loss 990,000 Sales 50.3 mln vs 50.1 mln Nine mths Oper shr loss nine cts vs loss two cts Oper net loss 849,000 vs loss 199,000 Sales 159.9 mln vs 156.6 mln NOTE: Current nine mths net includes 1,036,000 dlr pretax gain on sale of property. Prior year net both periods includes pretax gain 1,095,000 dlrs on pension plan termination. Current quarter net includes 580,000 dlr tax credit. Prior year net includes losses from discontinued operations of 200,000 dlrs in quarter and 573,000 dlrs in nine mths. Results restated for discontinued operations.  
E-SYSTEMS INC <ESY> SETS QUARTERLY. Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April One Record March 13  
UNICORP AMERICAN CORP <UAC> SETS QUARTERLY. Qtly div 15 cts vs 15 cts prior Pay March 31 Record March 13  
LIBERTY FINANCIAL GROUP <LFG> REGULAR DIVIDEND. Qtly div 12.5 cts vs 12.5 cts in prior qtr Payable March 13 Record February 27  
PACTEL <PAC> SEES EARNINGS GROWTH. Pacific Telesis Group chairman Donald Guinn told a meeting of security analysts that the company sees continued earnings growth in 1987 above the 1.08 billion dlrs, or 5.02 dlrs per share, earned in 1986. Guinn also said that capital spending stood at about 1.8 billion dlrs in 1986, and the company expected the figure to remain flat each year through 1989. He noted that all captial spending will be internally financed. Guinn also told analysts that the company faced some regulatory uncertainties in ongoing rate cases at its Pacific Bell operating company. In rates hearings before, the California Public Utility Commission, Guinn said the company faced a potential 76 mln dlr revenue reduction, and due to ongoing discussions with the commission, he said the figure might even be greater. The company also faces some opposition to a 225 mln dlr rate hike requested for 1986. Guinn said the commission found 180 mln dlrs of the hike was based on questionable calculations and assumptions, while 45 mln dlrs might represented unneeded modernization costs. Guinn also said that the company is still studying whether to join an international consortium that plans to lay a transpacific telephone cable between the U.S. and Japan. "We have not agreed to anything," Guinn said, but added he would soon recieve a feasibility study on the venture and the company would make a decision soon on participating. Asked by an analyst about the recent recommendation by the U.S. Department of Justice which would allow the Bell operating companies to offer limited long distance services, Guinn said the company would likely shy away from that type of expansion. "(Long distance services) is a very competitive business. It's a commodity business and becoming more so," he said. "I'm not so sure we would be interested in getting back into that business." However, Guinn generally applauded the U.S. recommendations, saying they would give more latitude for the Bell operating companies to expand into non-regulated businesses and provide more flexibility to form strategic alliances with other companies. He added that while the company welcomes the expansion into new areas, it is not currently involved in any acqusition talks. "We do not have anything actively under consideration," he said.  
UNICORP AMERICAN CORP <UAC> 4TH QTR NET. Shr 13 cts vs 70 cts Net 1,279,000 vs 7,979,000 Revs 16.4 mln vs 19.6 mln Year Shr 89 cts vs 2.43 dlrs Net 10.3 mln vs 29.8 mln Revs 56.2 mln vs 83.8 mln Avg shrs 12.1 mln vs 13.1 mlnm NOTE: 1986 year net includes gain 12.9 mln dlrs from sale of eight real estate properties.  
SHAW'S SUPERMARKETS INC <SHAW> YEAR JAN 3. Shr 1.23 dlrs vs 1.33 dlrs Semi-annual div six cts vs six cts prior payment Net 16.2 mln vs 14.8 mln Sales 1.09 billion vs 909.4 mln NOTE: Dividend is payable April one to holders of record March nine  
DANAHER <DHR> EXPECTS EARNINGS INCREASE IN 1987. Danaher Corp said it expects higher earnings in 1987 versus 1986. "We expect significant increases in earnings and revenues in 1987," Steven Rales, Danaher chairman and chief executive officer, said. Earlier, the company reported 1986 net earnings of 15.4 mln dlrs, or 1.51 dlrs a share, versus 13.5 mln dlrs, or 1.32 dlrs a share, in 1985. It also reported fourth quarter net of 7.3 mln dlrs, or 71 cts a share, up from 4.4 mln dlrs, or 43 cts a share, in the previous year's fourth quarter.  
DANAHER CORP <DHR> 4TH QTR NET. Shr 71 cts vs 43 cts Net 7,274,000 vs 4,447,000 Rev 161.6 mln vs 77.6 mln Year Shr 1.51 dlrs vs 1.32 dlrs Net 15,401,000 vs 13,525,000 Rev 454.0 mln vs 304.9 mln NOTE: Fourth qtr net includes extraordinary gain of 3.8 mln dlrs, or 37 cts per share, versus 2.9 mln dlrs, or 28 cts a share, in 1985's fourth qtr, and an extraordinary charge of 642,000 dlrs, or six cts a share. 1986 net includes extraordinary gain of 7.4 mln dlrs, or 72 cts a share, versus 8.0 mln dlrs, or 78 cts a share, in 1985.  
TRANS-LUX <TLX> SETS FIVE PCT STOCK DIVIDEND. Trans-Lux Corp said its board declared a five pct stock dividend payable April nine to holders of record March 20. The company said directors also declared regular quarterly dividends on presently outstanding shares of both classes of common, payable April nine to holders of record March 16. It said an unchanged dividend of two cts will be paid on the common and 1.8 cts on the Class B stock.  
KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS. Shr loss one cent Net loss 186,000 Revs 10.7 mln 11 mths Shr loss 7.26 dlrs Net loss 121.4 mln Revs 46.9 mln NOTE: In February 1986, Kaneb Services Inc contributed all of its domestic oil and gas operations to Kaneb Partners, which was newly formed, and exchanged approximately 3,200,000 depositary units respresenting limited partnership interests in KEP for approximately 6,400,000 million shares of the outstanding common stock of Kaneb Servies Inc. Kaneb now owns approximately 82 pct of KEP. During the 11 mths of operation, the partnership wrote down the carrying value of its oil and gas properties by 124.8 mln dlrs. The write downs reduced income by 7.46 dlrs per limited partnership unit.  
DALTON COMMUNICATIONS INC <DALT> 3RD QTR JAN 31. Shr profit three cts vs loss two cts net profit 157,500 vs loss 60,200 Revs 1.1 mln vs 1.0 mln Nine months Shr profit five cts vs profit six cts Net profit 223,400 vs profit 260,800 Revs 3.2 mln vs 3.1 mln  
4-MAR-1987 15:35:42.66. 4-MAR-1987 15:35:42.66 
WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET. Shr profit 13 cts vs loss one ct Net profit 853,000 vs loss 22,000 Sales 41.1 mln vs 20.3 mln Avg shrs 6,349,753 vs 4,403,852 Nine Mths Shr profit 57 cts vs profit 28 cts Net profit 2,869,000 vs profit 1,252,000 Sales 119.0 mln vs 67.6 mln Avg shrs 5,054,844 vs 4,403,852  
E-SYSTEMS <ESY> SETS QTRLY PAYOUT. Qtrly div 12.5 cts vs 12.5 cts prior Pay April 1 Record March 13  
PIEDMONT MANAGEMENT CO INC <PMAN> 4TH QTR. Shr 70 cts vs 4.91 dlrs Net 3.7 mln vs 26.3 mln Year Shr 1.99 dlrs vs 3.35 dlrs Net 10.7 mln vs 18.0 mln NOTE:1986 year, 4th qtr include capital gains of 3.5 mln dlrs and 1.1 mln dlrs, respectively and extraordinary gain of 3.4 mln dlrs and 1.2 mln dlrs respectively. 1985 year and 4th qtr include capital gains of 24.0 mln dlrs and 23.3 mln dlrs respectively and extraordinary gain of 3.9 mln dlrs.  
EASTPARK REALTY TRUST <ERT> 4TH QTR NET. Shr 1.52 dlrs vs 17 cts Net 1,306,000 vs 144,000 Rev 758,000 vs 670,000 Year Shr 2.68 dlrs vs 2.63 dlrs Net 2,313,000 vs 2,285,000 Rev 2.8 mln vs 2.7 mln NOTE: Fourth qtr and 1986 had gains on real estate investments of 933,000 dlrs, or 1.08 a share, and 970,000 dlrs, or 1.12 a share, respectively. This compares with a loss of 137,000 dlrs, or 15 cts a share, and again of 1.3 mln dlrs, or 1.45 a share, for the fourth qtr and year respectively in 1985.  
NL INDUSTRIES INC <NL> SETS QTRLY PAYOUT. Qtrly div five cts vs five cts qtr Pay April One Record  March 16  
WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET. Shr profit 13 cts vs loss one ct Net profit 853,000 vs loss 22,000 Revs 41.1 mln vs 20.3 mln Avg shrs 6,349,753 vs 4,403,852 Nine mths Shr profit 57 cts vs profit 28 cts Net profit 2,869,000 vs profit 1,252,000 Revs 119.0 mln vs 67.6 mln Avg shrs 5,054,844 vs 4,403,000 Note: Company went public in October 1986.  
ALASKA AIR GROUP INC <ALK> QTLY DIVIDEND. Shr four cts vs four cts prior qtr Pay May five Record April 15  
LEASEWAY TRANSPORTATION CORP <LTC> QTLY DIV. Qtly div 37.5 cts vs 37.5 cts prior Pay April eight Record March 16  
BROWING-FERRIS <BFI> DECLARES 2-FOR-1 SPLIT. Browning-Ferris Industires Inc said its board declared a two-for-one stock split payable April 24 to holders of record March 31.  
PENNWALT CORP <PSM> QTLY DIVIDEND. Qtly div 55 cts vs 55 cts prior Payable May one Record April three  
KEANE INC <KEAN> 4TH QTR. Shr 17 cts vs 15 cts Net 229,000 vs 201,000 revs 10.5 mln vs 9.9 mln Year Shr 21 cts vs 55 cts Net 283,000 vs 766,000 Revs 40.4 mn vs 39.7 mln NOTE:1985 shares adjusted to reflect the distribution of one share of Class B common stock for every two shares of common stock held of record as of July 1, 1986.  
NL INDUSTRIES INC <NL> SET REGULAR PAYOUT. Qtly div five cts vs five cts prior Pay March 31 Record March 16  
GENERAL HOST <GH> SEES YEAR LOSS. General Host Corp said it will report a loss from continuing operations and a sharp decline in net income for the year ended January 25, 1987, due to substantial operating losses in its Frank's Nursery and Crafts unit. For the year ended January 25, 1986, General reported net income of 29.7 mln dlrs. The company said it discovered problems in its unit's computerized accounts payable system. It said results of its other nursery and craft unit, Flower Time Inc, are not affected. It said its accountants are investigating the problem, which will delay release of its full-year results.  
MEDTRONIC INC <MDT> SETS PAYOUT. Qtly dividend 22 cts vs 22 cts Pay April 30 Record April 10  
LOUISVILLE GAS AND ELECTRIC CO <LOU> DIVIDEND. Qtly dividend 65 cts vs 65 cts Pay April 15 Record March 31  
FOREST OIL CORP <FOIL> 4TH QTR. Shr loss 29 cts vs profit eight cts Net loss 2.0 mln vs profit 568,000 year Shr loss 1.37 dlrs vs profit 88 cts Net loss 9.3 mln vs profit 6.0 mln  
UNICORP AMERICAN CORP <UAC> 4TH QTR NET. Shr 13 cts vs 70 cts Net 1,538,000 vs 8,614,000 Revs 16.4 mln vs 19.6 mln 12 mths Shr 89 cts vs 2.43 dlrs Net 10.3 mln vs 29.8 mln Revs 56.2 mln vs 83.8 mln Note: 1986 net is before preferred dividend payments and includes after-tax gain from sale of real estate properties of 12.9 mln dlrs.  
<CCL INDUSTRIES INC> 4TH QTR NET. Shr 15 cts vs 18 cts Net 4,500,000 vs 5,300,000 Revs 156.7 mln vs 152.0 mln YEAR Shr 72 cts vs 1.11 dlrs Net 21.7 mln vs 33.0 mln Revs 695.4 mln vs 653.5 mln Note: Shr profit relates to class B non-voting shares.  
(G.T.C. TRANSCONTINENTAL GROUP LTD) 1ST QTR NET. Shr 11 cts vs nine cts Net 2.1 mln vs 1.6 mln Revs 60.8 mln vs 32.9 mln Avg shrs 19.7 mln vs 17.2 mln Note: period ended January 31. Reuter  
AMVESTORS FINANCIAL CORP <AVFC> 4TH QTR NET. Oper shr profit 11 cts vs loss 27 cts Oper net profit 662,625 vs loss 774,002 Revs 43.9 mln vs 18.4 mln Year Oper shr profit 37 cts vs loss 37 cts Oper net profit 1,487,796 vs loss 1,119,626 Revs 150.1 mln vs 51.7 mln NOTE: 1986 4th qtr and yr oper net excludes 6,134 dlrs and 720,500 dlrs or 20 cts per share, respectively, for realized investment gains. 1986 qtr and yr oper net also excludes 102,300 dlrs and 257,300 dlrs, respectively, for tax loss carryforwards. 1985 4th qtr and yr oper net excludes realized investment gains of 449,920 dlrs or 15 cts per share and 897,949 dlrs or 30 cts per share, respectively. 1985 4th qtr oper net also excludes a loss of 42,820 dlrs for carryforward.  
<LUMONICS INC> YEAR LOSS. Oper shr loss 20 cts vs profit 66 cts Oper net loss 1,995,000 vs profit 5,820,000 Revs 65.2 mln vs 53.0 mln Avg shrs 9,891,000 vs 8,811,000 Note: 1986 loss excludes extraordinary loss of 2,413,000 dlrs or 25 cts shr including corporate reorganization, discontinuing of U.S. operations and inventory writedown of U.S. subsidiaries vs yr-ago loss of 3,140,000 dlrs or 36 cts shr.  
HCC INDUSTRIES <HCCI> QUARTERLY DIVIDEND. Qtly div three cts vs three cts Pay March 27 Record March 16  
<WESTERN SECURITY BANK> 4TH QTR NET. Shr profit ten cts vs loss six cts Net profit 43,000 vs loss 26,000 Year Shr profit 46 cts vs profit 12 cts Net profit 193,294 vs profit 51,029 Assets 44.4 mln vs 25.3 mln Deposits 40.0 mln vs 21.4 mln Loans 25.3 mln vs 15.2 mln  
HOECHST GROUP PRE-TAX PROFIT FALLS IN 1986. Hoechst AG <HFAG.F> said its group pre-tax profit in 1986 would be slightly lower than the 3.16 billion marks posted in 1985, while parent company pre-tax profits rose slightly from the 1.62 billion in 1985. Group turnover fell slightly to 38 billion marks from 42.72 billion in 1985, and parent company turnover fell to around 14 billion marks from 15.35 billion, the company said in a statement.  
HK BANK EXPECTED TO POST 10 TO 13 PCT PROFIT RISE. The Hongkong and Shanghai Banking Corp <HKBH.HK> is likely to show a rise in profit of between 10 and 13 pct for 1986, reflecting stronger than expected loan growth, share analysts polled by Reuters said. Their estimates of the bank's net earnings for last year ranged from 2.99 to 3.1 billion H.K. Dlrs. Results will be announced on Tuesday. The 1985 net profit was 2.72 billion. They forecast a final dividend of 29 cents for a total of 42 cents for the year against 38 cents in 1985, adjusted for a one-for-five bonus issue. Analysts said they expected the bank to recommend a bonus issue this year, probably one for three or one for five. The bank's 61.5 pct subsidiary Hang Seng Bank Ltd <HSGH.HK> is to report its 1986 results on Friday. Analysts expect Hang Seng to announce net profit of more than one billion dlrs for the first time, an increase of 10 to 12 pct. They expect Hang Seng to pay a final dividend of 1.37 dlrs for a total of 1.75 dlrs for the year against 1.60 in 1985. Analysts said that while the use of undisclosed inner reserves by banks here makes forecasting very imprecise, Hongkong Bank benefited from the unexpected strength of the Hong Kong economy in 1986, when gross domestic product grew by nearly nine pct against an initial forecast of 4.5 pct. "They benefited considerably from the pickup in loan demand, as their loan portfolio is well balanced," an analyst at Mansion House Securities (F.E.) Ltd said. Government figures show that total loans and advances rose by 13.8 pct in 1986, compared with a 4.5 pct increase in 1985. Loans to finance Hong Kong's visible trade, the mainstay of the local economy, rose by 15.1 pct against a decline of five pct in 1985. Low interest rates also helped the bank. Interest received on loans was low, with the prime rate at 6.5 pct at end-1986, but interest paid on savings was two pct. Hongkong Bank and Hang Seng Bank control half of all deposits in the banking system, giving them access to a large base of low-cost funds. The strength of the real-estate market was another major income source for the bank group. Loans to finance property development and instalment mortgages rose sharply. "The Hongkong Bank group is still the leader in mortgage business despite tough competition from the Bank of China group and other foreign banks," one analyst said. The high level of activity on the capital and equities markets in 1986 contributed to a sharp improvement in Hongkong Bank subsidiaries Wardley Ltd <WAIA.HK> and <James Capel and Co>, analysts said. "Wardley had a tremendous year acting as financial adviser and underwriter," an analyst said. Wardley was underwriter for last year's billion-dlr flotation of <Cathay Pacific Airways Ltd>, of which Hongkong Bank owned 30 pct at the time. The bank's stake has since been cut to 16.4 pct in return for 1.57 billion dlrs. It also sold its entire 48.8 pct stake in <South China Morning Post Ltd>, the larger of two English-language daily newspapers here, for 1.18 billion dlrs. The proceeds will go to reserves for acquisitions and will not show up in the profit and loss accounts, analysts said. Analysts said the bank had also been helped by a reduced need to write off bad debts. "The need for provisions was much lower than the year before," said Tony Measor of Hong Leong Securities Co Ltd. "Last year's profits should have been 2.8 to 2.9 billion dlrs if not for the huge provisions." Former Hongkong Bank chairman Michael Sandberg said the bank wrote off hundreds of millions of dollars against its shipping exposure in 1985. Lesley Nickolds of County Securities Asia Ltd said she saw no major shipping writeoffs in 1986. She forecast profit of 2.99 billion dlrs. The bank's Latin American exposure, mainly through its 51-pct owned Marine Midland Banks Inc <MM>, appears to have improved substantially, analysts said. Marine Midland's 1986 fourth-quarter loan-loss provisions fell to 44.1 mln U.S. Dlrs from 89.2 mln a year before. Its 1986 net profit rose to 145 mln U.S. Dlrs from 125 mln in 1985.  
CANON INC (CANN.T) YEAR ENDED DECMEBER 31. Group shr 18.34 yen vs 58.72 Net 10.73 billion yen vs 37.06 billion Pretax 27.76 billion yen vs 84.78 billion Operating 30.06 billion yen vs 88.81 billion Sales 889.22 billion vs 955.78 billion Note - The company attributed the profit fall largely to the yen's appreciation during the period. Domestic sales rose 0.4 pct to 274.17 billion yen from a year earlier while exports declined 9.9 pct to 615.04 billion.  
JAGUAR SEES STRONG GROWTH IN NEW MODEL SALES. Jaguar Plc <JAGR.L> is about to sell its new XJ-6 model on the U.S. And Japanese markets and expects a strong reception based on its success in the U.K., Chairman Sir John Egan told a news conference. Commenting on an 11 pct growth in 1986 group turnover to 830.4 mln stg and pre-tax profits at 120.8 mln stg, slightly below 1985's 121.3 mln, Egan said Jaguar aimed at an average profit growth of 15 pct per year. However, the introduction of the new model had kept this year's pre-tax profit down. Jaguar starts selling XJ-6 in the U.S. In May and plans to sell 25,000 of its total 47,000 production there in 1987. U.S. Sales now account for 65 pct of total turnover, finance director John Edwards said. A U.S. Price for the car has not been set yet, but Edwards said the relatively high car prices in dollars of West German competitors offered an "umbrella" for Jaguar. He added the XJ-6 had also to compete with U.S. Luxury car producers which would restrict the car's price. Jaguar hedges a majority of its dollar receipts on a 12-month rolling basis and plans to do so for a larger part of its receipts for longer periods, John Egan said. In the longer term, capital expenditure will amount to 10 pct of net sales. Research and development will cost four pct of net sales and training two pct. Jaguar builds half of its cars and buys components for the other half. The firm is in early stages of considering the building of an own press shop in Britain for about 80 mln stg, but Egan said this would take at least another three years On the London Stock Exchange, Jaguar's shares were last quoted at 591p, down from 611p at yesterday's close, after reporting 1986 results which were in line with market expectations, dealers said. REUTER...  
NORD RESOURCES CORP <NRD> 4TH QTR NET. Shr 19 cts vs 13 cts Net 2,656,000 vs 1,712,000 Revs 15.4 mln vs 9,443,000 Avg shrs 14.1 mln vs 12.6 mln Year Shr 98 cts vs 77 cts Net 13.8 mln vs 8,928,000 Revs 58.8 mln vs 48.5 mln Avg shrs 14.0 mln vs 11.6 mln NOTE: Shr figures adjusted for 3-for-2 split paid Feb 6, 1987.  
PEGASUS GOLD INC <PGULF> 3RD QTR DEC 31 NET. Shr profit 20 cts vs loss two cts Net profit 2,665,000 vs loss 202,000 Revs 12,141,000 vs 5,993,000 Nine mths Shr profit 35 cts vs loss 11 cts Net profit 4,653,000 vs loss 1,167,000 Revs 35.1 mln vs 18.0 mln  
<KELTIC INC> YEAR NET. Shr 99 cts vs 1.25 dlrs Net 418,733 vs 235,572 Revs 2,777,425 vs 2,024,116 Note: 1986 shr after November, 1986 600,000 class A subordinate floating share issue  
PRINCEVILLE DEVELOPMENT CORP <PVDC> YEAR LOSS. Shr diluted loss 31 cts vs profit 17 cts Net loss 2,806,005 vs profit 1,513,395 Revs 15.0 mln vs 10.4 mln Avg shrs diluted 8,982,754 vs 8,804,899 NOTE: Current year includes loss of 3.4 mln dlrs from takeover defense expenses. Also includes losses of 1.8 mln dlrs vs 332,000 dlrs from equity in limited partnerships.  
HORIZON CORP <HZN> 4TH QTR NET. Oper shr profit 1.66 dlrs vs loss eight cts Oper net profit 12.0 mln vs loss 572,000 Revs 27.4 mln vs 4,311,000 Year Oper shr profit 1.36 dlrs vs loss 43 cts Oper net profit 9,817,000 vs loss 2,433,000 Revs 35.0 mln vs 13.8 mln Avg shrs 7,224,000 vs 6,731,000 NOTE: 1985 net includes tax credits of 492,000 dlrs in quarter and 2,433,000 dlrs in year. 1985 net both periods excludes 168,000 dlr loss from discontinued operations. 1986 net both periods includes pretax gain 21.8 mln dlrs from sale of remaining interest in Paradise Hills, N.M., development.  
<INTERNATIONAL THOMSON ORGANISATION LTD> YEAR. Shr 33p vs 38p Net 97 mln vs 111 mln Revs 1.71 billion vs 1.76 billion NOTE: Figures in sterling. Share results after deducting preferred share dividends of one mln pounds sterling in 1986.  
EQUATORIAL COMMUNICATIONS CO <EQUA> 4TH QTR LOSS. Shr loss 3.84 dlrs vs nil Net loss 56,879,000 vs profit 23,000 Rev 10.3 mln vs 17.7 mln Year Shr loss 4.60 dlrs vs profit 14 cts Net loss 67,818,000 vs profit 1,807,000 Rev 50.9 mln vs 56.1 mln Avg shares 14,734,000 vs 12,801,000 NOTE: Fourth qtr net includes a one-time restructuring charge of 45.2 mln dlrs. 1985 net income includes extraordinary gain of 3.2 mln dlrs, or 25 cts.  
INTERNATIONAL THOMSON ORGANISATION LTD YEAR SHR 33P VS 38P.  INTERNATIONAL THOMSON ORGANISATION LTD YEAR SHR 33P VS 38P  
CASEY'S GENERAL STORES INC <CASY> 3RD QTR JAN 31. Shr 16 cts vs 13 cts Net 1,900,000 vs 1,600,000 Sales 68.2 mln vs 69.6 mln Nine mths Shr 60 cts vs 43 cts Net 7,100,000 vs 4,700,000 Sales 214.0 mln vs 219.5 mln  
OAK HILL SPORTSWEAR CORP <OHSC> 4TH QTR NET. Shr 27 cts vs 28 cts Net 1,026,000 vs 1,025,000 Sales 27.8 mln vs 25.4 mln Year Shr 95 cts vs 16 cts Net 3,682,000 vs 598,000 Sales 102.1 mln vs 100.4 mln Avg shrs 3,858,000 vs 3,700,000  
OAK INDUSTRIES INC <OAK> 4TH QTR LOSS. Oper shr loss five cts vs loss 50 cts Oper net loss 3,862,000 vs loss 15,900,000 Sales 42.6 mln vs 38.8 mln Avg shr 72.1 mln vs 31.7 mln Year Oper shr loss 51 cts vs loss 2.10 dlrs Oper net loss 30.3 mln vs 51.3 mln Sales 151.7 mln vs 153.1 mln Avg shrs 59.4 mln vs 24.4 mln Backlog 57.1 mln vs 52.9 mln NOTES: Operating losses exclude profits from discontinued operationgs of 1,000,000 dlrs, or one cent a share, vs 2,493,000 dlrs, or eight cts a share, in quarter and 65.0 mln dlrs, or 1.09 dlrs a share, vs 13.7 mln dlrs, or 56 cts a share, in year 1986 year operating loss also excludes extraordinary gain of of 25.6 mln dlrs, or 43 cts a share Backlog, which includes only orders to be shipped within 12 mths, was 63.0 mln dlrs on January 31. Orders to be shipped beyond 12 mths were 27.6 mln dlrs vs 17.1 mln dlrs at December 31  
REGIS CORP <RGIS> REGULAR DIVIDEND SET. Qtly div 4-1/2 cts vs 4-1/2 cts prior Pay April 15 Record March 24  
AMERICAN INT'L GROUP INC <AIG> 4TH QTR NET. Shr 1.83 dlrs vs 77 cts Net 296.6 mln vs 120.1 mln Year Shr 4.90 dlrs vs 2.76 dlrs Net 795.8 mln vs 420.5 mln NOTE: Includes gains of 139.2 mln vs 46.8 mln in year and 94.0 mln vs 11.6 mln from capital gains from investments.  
SYSTEMS FOR HEALTH CARE IN ONE-FOR-50 SPLIT. Systems for Health Care Inc said it repositioned the company through a one-for-50 reverse stock split. It said there are now 3,002,500 common shares outstanding with a quoted price of about 7/8 bid, compared to 150,125,000 shares outstanding prior to the split. In another recent development, Systems for Health Care formally changed its name to its present form from Orcas Corp.  
GAMBRO AB <GAMB ST> 1986 YEAR. 133.5 mln crowns vs 101 mln. Sales 1.61 billion vs 1.51 billion. Proposed dividend 0.80 crowns vs 0.40 crowns.  
AMERICAN SOFTWARE <AMSWA> SETS STOCK SPLIT. American Software Inc said its board declared a three-for-two stock split on Class A and Class B common shares, payable March 31, record March 16. The company said it expects to increase its semiannual dividend 12.5 pct to six cts per share post-split from eight cts pre-split.  
<WAJAX LTD> YEAR NET. Shr 78 cts vs 1.16 dlrs Net 6.7 mln vs 9.5 mln Revs 278 mln vs 290 mln  
AMERICAN SOFTWARE INC <AMSWA> 3RD QTR JAN 31 NET. Shr 42 cts vs 19 cts Net 2,903,000 vs 1,307,000 Revs 13.1 mln vs 8,937,000 Avg shrs 6,877,360 vs 6,874,970 Nine mths Shr 98 cts vs 62 cts Net 6,740,000 vs 4,085,000 Revs 33.9 mln vs 27.8 mln Avg shrs 6,875,706 vs 6,605,879  
COPLEY PROPERTIES INC <COP> 4TH QTR NET. Shr 30 cts vs 36 cts Net 1,211,000 vs 1,428,000 Revs 1,536,000 vs 1,743,000 Year Shr 1.36 dlrs vs 62 cts Net 5,438,000 vs 2,498,000 Revs 6,567,000 vs 2,971,000 NOTE: Company began operations after its July 29, 1985 public offering, therefore annual data are not directly comparable.  
UNITIL CORP <UTL> 4TH QTR NET. Shr 79 cts vs 72 cts Net 581,915 vs 536,040 Revs 13.9 mln vs 13.3 mln Year Shr 3.28 dlrs vs 3.21 dlrs Net 2,413,407 vs 2,360,048 Revs 54.9 mln vs 54.2 mln  
POLAROID <PRD> UP ON REAFFIRMED OPINION. Shares of Polaroid Corp rose following a reiterated recommendation by Merrill Lynch and Co that focused on strong earnings momentum for the company, traders said. "We have been recommending the stock since it was in the 50s, but we reiterated today because of expectations of strong earnings momentum, its benefits from the lower dollar and anticipation of nice gains in margins," Merrill Lynch analyst Charles Ryan said. He said a negative opinion by another brokerage house hurt the stock Wednesday, and it can be bought at a relatively bargain price today. Ryan said "you always have to look at Polaroid at its weakness. Its a volatile stock that has to be caught on weakness." Polaroid's stock, which gained more than a point early this morning, was trading at 76-1/8, up 5/8. It was down over three points Wednesday morning before closing down 7/8. "Polaroid is working overtime on production of cameras and film, so we expect first quarter earnings to be up about 40 pct," Ryan said, estimating earnings of 70 cts a share in the first quarter compared to 52 cts a share earned a year earlier. He expects the company to earn four dlrs a share in 1987 as compared to 3.34 dlrs a share last year.  
SWEDISH MATCH AB <SMBS.ST> 1986 YEAR. Profit after net financial items 500 mln crowns vs 359 mln Sales 10.90 billion crowns vs 10.72 billion Proposed dividend 12.50 crowns vs 10.50 crowns  
SL INDUSTRIES INC <SL> 2ND QTR JAN 31 NET. Oper shr 22 cts vs 20 cts Oper net 1,153,000 vs 1,068,000 Revs 15.7 mln vs 15.8 mln Six mths Oper shr 38 cts vs 38 cts Oper net 2,039,000 vs 2,051,000 Revs 31.4 mln vs 31.6 mln NOTE: exlcudes 145,000 discontinued operations for 1986 oper net for six mths for sale of electronics division. Oper shr for qtr and six mths 1986 adjusted for stock split and dividend distribution in November.  
PEPSICO <PEP> UPGRADED BY KIDDER PEABODY. Kidder Peabody and Co analyst Roy Burry issued a strong buy recommendation on Pepsico Inc, citing an improved profit outlook for both domestic soft drinks and Frito-Lay snack foods. Pepsico climbed 7/8 to 34-3/4 on 615,000 shares by midmorning. Burry forecast earnings of 2.00 dlrs per share in 1987 and 2.30 dlrs in 1988. In 1986 the company earned 1.75 dlrs per share. Burry previously had a sell recommendation on Pepsico. "We're looking at 10 to 15 pct earnings growth for Frito-lay in 1987, a trend that should continue through the decade."  
CANADIAN IMPERIAL BANK OF COMMERCE 1ST QTR SHARE BASIC 61 CTS VS 64 CTS.  CANADIAN IMPERIAL BANK OF COMMERCE 1ST QTR SHARE BASIC 61 CTS VS 64 CTS  
MCI <MCIC> PRESIDENT SEES PROFIT IMPROVEMENT. MCI Communications Corp President Bert Roberts said he expects MCI's financial performance to improve in the current quarter compared to the previous quarter. He said American Telephone and Telegraph Co long-distance rate cuts had cut into MCI's fourth quarter performance but added: "There's going to be a continuing impact (on profits) but we expect this quarter to be better than the fourth quarter." The current quarter ends March 31. For the fourth quarter, MCI reported a 448 mln dlr loss, due mainly to write-offs and staff reductions. Roberts said the ATT long-distance rate reductions, which had been ordered by the Federal Communications Commission have had "A significantly negative impact on our profits." As reported earlier today, MCI said it plans to ask the FCC to immediately deregulate ATT, apparently in hopes that an unregulated ATT would pocket a greater proportion of its revenues rather than cut rates further.  
NATIONAL GYPSUM CO 4TH QTR NET. Net 5,521,000 vs NA Revs 358.1 mln vs 359.0 mln Year Net 55.3 mln vs NA Revs 1.43 billion vs 1.34 billion NOTE: Current year includes earnings of 49.6 mln dlrs for the four months ended April 30, 1986. Year-ago earnings not comparable because of acquisition by Aancor Holdings Inc on April 29, 1986.  
ZAYRE CORP 4TH QTR SHR 73 CTS VS 60 CTS.  ZAYRE CORP 4TH QTR SHR 73 CTS VS 60 CTS  
<DET OESTASIATISKE KOMPAGNI A/S> (EAST ASIATIC CO). Results for year 1986 - Group pre-tax profit 385 mln crowns vs 380 mln Net turnover 14.17 billion crowns vs 16.69 billion Dividend eight pct vs nil Group profit after tax 16 mln crowns vs 244 mln  
<SIGNTECH INC> NINE MTHS JAN 31 NET. Shr 55 cts vs 24 cts Net 1.9 mln vs 800,000 Revs 17.6 mln vs 12.8 mln  
<CANADIAN IMPERIAL BANK OF COMMERCE> 1ST QTR. Period ended January 31 Shr 61 cts vs 64 cts Shr diluted 60 cts vs 60 cts Net 96.5 mln vs 87.0 mln Loans 44.87 billion vs 48.07 billion Deposits 69.86 billion vs 68.45 billion Assets 83.92 billion vs 78.93 billion Note: shr after preferred dividends  
CONCHEMCO INC <CKC> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April Six Record March 16  
DST SYSTEMS INC <DSTS> REGULAR PAYOUT SET. Qtly div five cts vs five cts prior Pay April 17 Record March 16  
BROWN GROUP INC 4TH QTR SHR 77 CTS VS 76 CTS.  BROWN GROUP INC 4TH QTR SHR 77 CTS VS 76 CTS  
EQK GREEN ACRES LP <EGA> RAISES QUARTERLY. Qtly div 26-1/4 cts vs 25 cts prior Pay Aug 14 Record June 30  
MERCANTILE STORES CO INC 4TH QTR SHR 3.26 DLRS VS 3.17 DLRS.  MERCANTILE STORES CO INC 4TH QTR SHR 3.26 DLRS VS 3.17 DLRS  
WINLAND ELECTRONICS INC 4TH QTR LOSS. Shr loss one ct vs profit 15 cts Net loss 10,863 vs profit 176,344 Revs 672,073 vs 766,066 Year Shr loss seven cts vs loss one ct Net loss 77,804 vs loss 16,627 Revs 1,717,810 vs 1,317,402  
NATIONAL CONVENIENCE <NCS> TO HAVE 3RD QTR LOSS. National Convenience Stores Inc said it expects to report a loss for the third quarter ending March 31 due to continued poor sales in Texas, especially in Houston. In last year's third quarter, National Convenience earned 1,788,000 dlrs or eight cts per share, including a gain of 2,883,000 dlrs from the sale of 186 stores to another operator. It said the results also included earnings from gasoline operations of 2,500,000 dlrs or 11 cts per share caused by unusually high gross margins on gasoline sales of 12.7 cts per gallon that were caused by rapidly falling oil prices. National Convenience said its third quarter is usually weak due to winter weather.  
CHRYSLER SETS THREE-FOR-TWO STOCK SPLIT, RAISES DIVIDEND.  CHRYSLER SETS THREE-FOR-TWO STOCK SPLIT, RAISES DIVIDEND  
BROWN GROUP INC <BG> 4TH QTR JAN 31 NET. Shr 77 cts vs 76 cts Net 13,843,000 vs 14,478,000 Sales 374.6 mln vs 368.3 mln Avg shrs 18,003,000 vs 19,025,000 Year Shr 2.16 dlrs vs 2.65 dlrs Net 39,503,000 vs 51,573,000 Revs 1.41 billion vs 1.41 billion Avg shrs 18,269,000 vs 19,497,000 NOTE: 1986 period ended February One Company changed fiscal yearend to January 31 from October 31. 1986 results were restated to reflect the change.  
PEGASUS GOLD INC <PGULF> 4TH QTR NET. Shr profit 20 cts vs loss two cts Net profit 2,665,000 vs loss 202,000 Revs 12.1 mln vs 5,993,000 Year Shr profit 35 cts vs loss 11 cts Net profit 4,653,000 vs loss 1,167,000 Revs 35.1 mln vs 18.0 mln NOTE: Current qtr includes gain of 1.1 mln dlrs from tax benefit.  
ZAYRE CORP <ZY> 4TH QTR JAN 31 NET. Shr 73 cts vs 60 cts Net 43,792,000 vs 36,480,000 Rev 1.78 billion vs 1.34 billion Year Shr 1.49 dlrs vs 1.61 dlrs Net 88,974,000 vs 94,647,000 Rev 5.35 billion vs 4.04 billion NOTE: 4th qtr net includes pre-tax gain of 9.7 mln dlrs from sale of real estate and real estate development company. Fiscal 1986 net includes extraordinary charge of 3.5 mln dlrs, or six cts a share. All per share data reflects a two-for-one stock split paid June 25, 1986.  
ZAYRE <ZY> PLANS MORE STORE OPENINGS IN 1987. Zayre Corp said it plans to open 25 additional Zayre Stores, 35 new T.J. Maxx stores and 50 Hit or Miss Shops in 1987. In addition, Zayre said it plans to add six new BJ's Wholesale Clubs and eight new HomeClubs to its warehouse group. Earlier, the company reported 1986 earnings, ended January 31, of 89.0 mln dlrs, or 1.49 dlrs per share, versus 94.6 mln dlrs, or 1.61 dlrs per share, in fiscal 1985. It also reported fourth quarter net of 43.8 mln dlrs, or 73 cts a share, versus 36.5 mln dlrs, or 60 cts a share in 1985's fourth quarter.  
CHRYSLER <C> SETS STOCK SPLIT, HIGHER DIVIDEND. Chrysler Corp said its board declared a three-for-two stock split in the form of a 50 pct stock dividend and raised the quarterly dividend by seven pct. The company said the dividend was raised to 37.5 cts a share from 35 cts on a pre-split basis, equal to a 25 ct dividend on a post-split basis. Chrysler said the stock dividend is payable April 13 to holders of record March 23 while the cash dividend is payable April 15 to holders of record March 23. It said cash will be paid in lieu of fractional shares. With the split, Chrysler said 13.2 mln shares remain to be purchased in its stock repurchase program that began in late 1984. That program now has a target of 56.3 mln shares with the latest stock split. Chrysler said in a statement the actions "reflect not only our outstanding performance over the past few years but also our optimism about the company's future."  
CANADIAN IMPERIAL SEES LOWER LOAN LOSSES. <Canadian Imperial Bank of Commerce>, earlier reporting higher net income for the first quarter ended January 31, said it expects loan losses to be lower than last year's 697.0 mln dlrs. However, the bank said it will maintain the high level of provisioning for loan losses established last year because of many market uncertainties. Commerce bank set loan loss provisions of 636.0 mln dlrs in fiscal 1986, ended October 31. The bank earlier said first quarter net income rose to 96.5 mln dlrs from 87.0 mln dlrs in the prior year. Profit per basic share after dividends fell to 61 cts from year-ago 64 cts. Commerce Bank said because of market uncertainties, it used an estimate of 600.0 mln dlrs for fiscal 1987 loan losses in calculating first quarter results. The bank's first quarter provision for loan losses rose to 172.0 mln dlrs, from 152.0 mln dlrs in the prior year. Commerce Bank also said it will continue to adopt an agressive posture in adding to its general provisions against loan exposure to 34 countries designated by the federal government's Inspector General of Banks. First quarter net partly benefitted from net interest income, up to 561.8 mln dlrs from year ago 540.9 mln dlrs. Commerce Bank said improved other income, which rose to 213.6 mln dlrs from year-earlier 170.1 mln dlrs, and net income was partially offset by the increased loan loss provisions, non-interest expenses and income taxes. The bank said first quarter total assets increased to 83.92 billion dlrs from 78.93 mln dlrs in the prior year, due mainly to continued expansion in consumer loan and mortgage fields. Return on assets increased by two cts to 46 cts per 100 dlrs of average assets from the first quarter in fiscal 1986, but declined two cts from fiscal 1986 fourth quarter. The bank also said total non-accrual loans increased to 2.4 billion dlrs in the first quarter from year-ago 1.8 billion dlrs. However, non-accrual loans declined 130 mln dlrs from fiscal 1986 year-end. "Despite the recent announcement of the suspension of interest payments by Brazil, virtually all of the bank's loans to this country were income producing up to January 31, 1987, and there was little adverse impact on the bank's earnings prior to the announcement," Commerce bank said. The bank did not disclose a forecast of the impact on future earnings by Brazil's suspension of interest payments.  
MERCANTILE STORES CO INC <MST> 4TH QTR NET. Qtr ends Jan 31 Shr 3.26 dlrs vs 3.17 dlrs Net 47.9 mln vs 46.7 mln Revs 673.1 mln vs 630.2 mln 12 mths Shr 7.54 dlrs vs 6.95 dlrs Net 111.1 mln vs 102.4 mln Revs 2.03 billion vs 1.88 billion .  
ALLEGHENY POWER SYSTEM INC <AYP> SETS PAYOUT. Qtly div 73 cts vs 73 cts prior Pay March 31 Record March 16  
<SELKIRK COMMUNICATIONS LTD> 4TH QTR NET. Oper shr 57 cts vs 73 cts Oper net 6,051,000 vs 7,818,000 Revs 50.0 mln vs 56.0 mln Year Oper shr 1.06 dlrs vs 1.24 dlrs Oper net 11,301,000 vs 13,203,000 Revs 171.9 mln vs 207.4 mln NOTE: Current oper net excludes extraordinary income of 180,000 dlrs in qtr and 1,119,000 dlrs in year vs previous losses of 2,345,000 dlrs and 515,000 dlrs, respectively.  
HOUSTON OIL ROYALTY TRUST <RTH> PAYOUT LOWER. Mthly div 2.108 cts vs 2.158 cts prior Pay March 26 Record March 16  
ENGELHARD CORP SETS THREE FOR TWO STOCK SPLIT AND RAISES QUARTERLY.  ENGELHARD CORP SETS THREE FOR TWO STOCK SPLIT AND RAISES QUARTERLY  
ROYAL DUTCH/SHELL GROUP OF COS 4TH QTR NET. Shr Royal Dutch Petroleum Co <RD> 2.30 dlrs vs 2.90 dlrs Final Royal Dutch dividend of 8.30 guilders for total 12.80 guilders vs 12.80 guilders for 1985 Shr Shell Transport and Trading Co PLC <SC> 1.38 dlrs vs 1.65 dlrs Final Shell Transport dividend 118.0 pence for total of 172.0 pence vs 140.0 pence for 1985 Group Net 1.07 billion vs 1.24 billion Group Sales 20.42 billion vs 25.84 billion Year Shr Royal Dutch 8.65 dlrs vs 9.11 dlrs Net Shell Transport 4.78 dlrs vs 5.16 dlrs Group Net 3.71 billion vs 3.88 billion Group Sales 81.40 billion vs 94.57 billion NOTES: Group is 60 pct owned by Royal Dutch and 40 pct by Shell Transport Dollar amount of Royal Dutch dividend will depend on guilder/dollar exchange rate on May 14. Final dividend is payable June 16 to holders of record May 26 Shell Transport dividend and per share results based on New York shares, which are equal to four ordinary shares. Dollar final dividend will be determined by sterling/dollar exchange rate May 18. At current rate, with tax credits, is equal to 2.59 dlrs. Final dividend is payable May 28 to holders of record April 10 Fourth quarter U.S. dollar figures for group translated from sterling at average rate of exchange for the quarter which was 1.43 dlrs per pound in 1986 and 1.44 dlrs in 1985. Full year U.S. dollar figures are sum of sterling translations to U.S. dollars for first, second, third and fourth quarters Net includes FIFO inventory gain 217 mln dlrs vs loss 80 mln dlrs in quarter and loss 1.23 billion dlrs vs loss 178 mln dlrs in year. If LIFO accounting had been used, company said, Royal Dutch per share net would have been 1.78 dlrs vs 3.17 dlrs in quarter and 11.60 dlrs vs 9.53 dlrs in year, Shell Transport per share net would have been 1.10 dlrs vs 1.81 dlrs in quarter and 6.36 dlrs vs 5.40 dlrs in year Net includes restructuring credit 114 mln dlrs vs charge 72 mln dlrs in quarter and credit 67 mln dlrs vs charge 467 mln Per share impact of restructuring on Royal Dutch was credit 27 cts vs charge 17 cts in quarter and credit 16 cts vs charge 1.10 dlrs in year, on Shell Transport was credit 15 cts vs charge 10 cts in quarter and credit nine cts vs charge 62 cts in year Net also includes currency exchange losses of 20 mln dlrs vs 69 mln dlrs in quarter and 170 mln dlrs vs 401 mln dlrs in year. Exchange losses had per share impact on Royal Dutch of 14 cts vs 31 cts in quarter and 96 cts vs 1.26 dlrs in year and on Shell Transport of eight cts vs 17 cts in quarter and 51 cts vs 71 cts in year.  
SOUTHERN MINERAL CORP <SMIN> 4TH QTR LOSS. Shr loss two cts vs profit three cts Net loss 77,400 vs profit 134,000 Revs 418,500 vs 435,900 Year Shr profit eight cts vs profit 27 cts Net profit 315,100 vs profit 1,082,700 Revs 1,761,900 vs 2,511,200 NOTE: Per-share figures adjusted for four-for-three stock distribution effective Dec 14, 1984 1985 results include an extraordinary tax benefit of 55,000 dlrs, or one ct a share in each period  
ENGELHARD CORP <EC> SETS STOCK SPLIT. Engelhard Corp said its board declared a three-for-two stock split and raised the quarterly dividend to 19-1/2 cts per share presplit from 19 cts, both payable March 31 to holders of record March 17.  
H AND H OIL TOOL CO <HHOT> 4TH QTR LOSS. Shr loss six cts vs profit two cts Net loss 196,000 vs profit 71,000 Revs 2,512,000 vs 5,776,000 Year Shr loss 1.09 dlrs vs loss 18 cts Net loss 3,509,000 vs loss 587,000 Revs 12.0 mln vs 21.0 mln Note: 1986 year includes special charge of 1,600,000 dlrs, or 50 cts per shr on write-down of rental equipment.  
CB AND T FINANCIAL CORP <CBTF> YEAR NET. Shr 2.10 dlrs vs 1.72 dlrs Shr diluted 1.98 dlrs vs 1.72 dlrs Net 2,228,000 vs 1,730,000  
WASHINGTON NATIONAL CORP <WNT> VOTES DIVIDEND. Qtly div 27 cts vs 27 cts prior qtr Pay 1 April Record 16 March  
CORRECTED - PEGASUS GOLD INC<PGULF> 4TH QTR NET. Shr profit 20 cts vs loss two cts Net profit 2,665,000 vs loss 202,000 Revs 12,141,000 vs 5,993,000 Year Shr profit 35 cts vs loss 11 cts Net profit 4,653,000 vs loss 1,167,000 Revs 35.1 mln vs 18.0 mln NOTE: company corrects reporting period to 4th qtr and year from 3rd qtr and nine mths  
AEQUITRON MEDICAL INC <AQTN> 3RD QTR LOSS. Period ended January 31 Shr loss five cts vs profit eight cts Net loss 247,100 vs profit 345,300 Sales 4,529,300 vs 3,482,800 Nine mths Shr profit six cts vs profit 18 cts Net profit 261,300 vs profit 793,700 Sales 12.3 mln vs 9,957,200  
LOWE'S COS INC <LOW> 4TH QTR JAN 31 NET. Shr 18 cts vs 31 cts Net 7,168,000 vs 11.3 mln Sales 497.4 mln vs 475.6 mln Avg shrs 39.6 mln vs 37.1 mln Year Shr 1.34 dlrs vs 1.64 dlrs Net 52.2 mln vs 59.7 mln Sales 2.28 billion vs 2.07 billion Avg shrs 39.0 mln vs 36.5 mln NOTE: Current year net both periods includes charge 2,885,000 dlrs or seven cts shr from early note retirement and charge seven cts shr from reversal of tax credits. Current year net both periods includes gain six cts shr from plywood manufacturers litigation settlement.  
MIDLAND <MLA> SETS STOCK SPLIT. Midland Co said its board declared a two-for-one stock split, subject to approval of a doubling of authorized common shares at the annual meeting on April 9, and an increase in the quarterly dividend to 12 cts pre-split from 10 cts. The dividend is payable April 8, record March 17, and the split would be payable May 7, record April 23.  
PRUDENTIAL INSURANCE YEAR EARNINGS. The Prudential Insurance Company of America, a privately held company, said today that net income in 1986 rose to 2.8 billion dlrs from the 2.3 billion dlrs reported the year earlier. Assets under management rose to 177.5 billion dlrs in 1986 from 150.1 billion dlrs in 1985, while consolidated assets jumped to 134.5 billion dlrs from 115.7 billion dlrs. Discussing its major subsidiaries, the company said that Prudential Capital and Investment Services Inc, the holding company for brokerage house Prudential-Bache Securities and certain other related subsidiaries, earned 142 million dlrs in 1986. Of that, the securities operations of Prudential-Bache netted 81.7 mln dlrs after taxes and a charge of 25 mln dlrs.  
AEQUITRON <AQTN> SEES 4TH QTR CHARGE. Aequitron Medical Inc said costs related to its previously announced plan to consolidate Life Products operations in Boulder, Colo, are expected to total 720,000 dlrs, or eight cts a share for the fourth quarter ending April 30. It said the costs including moving expenses, severance pay and future lease payments. The company said it will consolidate Life Products into the company's headquarters and manufacturing operations in Minneapolis.  
BIG B INC <BIGB> 4TH QTR JAN 31 NET. Shr 23 cts vs 17 cts Net 1,742,000 vs 1,1512,000 Sales 62.6 mln vs 53.6 mln Avg shrs 7,854,000 vs 6,617,000 Year Shr 61 cts vs 61 cts Net 4,469,000 vs 4,039,000 Sales 209.8 mln vs 175.4 mln Avg shrs 78,369,000 vs 6,610,000  
QUARTZ ENGINEERING AND MATERIALS <QRTZ> 1ST QTR. Qtr ended Dec 31 Shr nil vs nil Net loss 59,922 vs loss 357,203 Revs 714,263 vs 926,964  
GEMCRAFT INC <GEMH> YEAR NET. Shr 42 cts vs 1.21 dlrs Net 2,317,000 vs 5,847,000 Sales 360.0 mln vs 282.4 mln Avg shrs 5,463,000 vs 4,829,000 NOTE: 1986 net includes 4,700,000 dlr pretax charge from writedown of land and abandonment of land and pretax charges of 5,800,00 dlrs from pending rescission offer, settlements with U.S. agencies, adjustment of the prior booking of residuals arising from collateralized mortgage obligation bond issues, writedowns of land held by a joint venture, startup costs associated with entering new markets, an increase in reserves for customer service and writeoffs and reserves for mortgage-related receivables to reflect current market values.  
APPLIED SOLAR ENERGY CORP <SOLR> 1ST QTR NET. Qtr ended Jan 31 Shr profit nine cts vs loss 30 cts Net profit 317,000 vs loss 997,000 Sales 6,338,000 vs 3,119,000 Note: 1986 net includes extraordinary gain of 90,000 dlrs, or two cts per shr.  
PACIFIC NUCLEAR SYSTEMS IN <PACN> 4TH QTR LOSS. Shr loss 19 cts vs profit seven cts Net loss 851,000 vs profit 227,000 Revs 2,600,000 vs 4,800,000 Year Shr loss 46 cts vs profit 19 cts Net loss 2,100,000 vs profit 600,000 Revs 9,900,000 vs 15.9 mln  
ANGLO AMERICAN GOLD INVESTMENT CO LTD <AAGIY>. Year to Feb 28 Shr 1,700.3 cts vs 1,533.0 Pre-tax 373.3 mln rand vs 341.0 mln Net 373.3 mln vs 336.5 mln Tax nil vs 4.5 mln Final div 900 cts making 1,600 cts vs 1,450 Div payable April 24, register March 20  
5-MAR-1987 13:15:11.82. 5-MAR-1987 13:15:11.82 
HOOPER HOLMES SHERLOCK INC <HOOP> 4TH QTR NET. Shr 22 cts vs 25 cts Net 472,000 vs 454,000 Revs 16.2 mln vs 15.2 mln Avg shrs 2,135,315 vs 1,835,325 12 mths Shr 71 cts vs 70 cts Net 1,393,000 vs 1,285,000 Rwevs 61,805,000 vs 55,367,000 Avg shares 1,960,319 vs 1,835,325  
ALLIED <ALD> AFFILIATE RESTATES LOSS LARGER. Allied-Signal Inc's 49.7 pct owned <Union Texas Petroleum Co> affiliate said it has restated its fourth quarter and full-year losses and revenues to increase the provision for the proposed settlement of a price dispute involving Indonesian liquefied natural gas. It said the restated increases the provision against 1986 fourth quarter earnings to 23.5 mln dlrs from 15.5 mln dlrs estimated earlier. Union Texas said its fourth quarter loss was increased to 29.5 mln dlrs from 21.5 mln dlrs reported previously and revenues reduiced to 214 mln dlrs from 228 mln dlrs. Union Texas said for the full year it restated its loss to 57.5 mln dlrs from 49.5 mln dlrs and revenues to 1.26 billion dlrs from 1.27 billion dlrs. the restatement results from a tentative agreement reached in February with Pertamina, the Indonesian state-owned petroleum enterprise, and Japanese purchasers of LNG. Kohlberg Kravis Roberts and Co also owns 49.7 pct of Union Texas and the remainder is owned by management.  
AMREP CORP <AXR> 3RD QTR JAN 31 NET. Shr 12 cts vs 34 cts Net 787,000 vs 2,250,000 Revs 23.6 mln vs 23.6 mln Nine mths Shr 70 cts vs 1.06 dlrs Net 4,598,000 vs 6,974,000 Revs 73.1 mln vs 73.6 mln NOTE: Share adjusted for three-for-two stock split in December 1986.  
ICI <ICI> SEES GROWTH IN PHARMACEUTICALS. Imperial Chemical Industries PLC expects earnings from its pharmaceuticals operations to grow to about 35 pct of world profits within the next five years compared with a current 30 pct, chairman elect Denys Henderson told financial analysts. "Over the next five years we expect to launch one major new product each year," Henderson said. He also said research and development spending in this business segment will be increased to 14 pct of total sales income in 1987 from 13 pct, or 130 mln sterling, in 1986. ICI, the world's fifth largest chemicals firm in terms of sales, recently reported 1986 profits of about 888 mln dlrs on 15 billion dlrs in sales, compared with income of 817 mln dlrs on 15.87 billion dlrs in sales a year earlier. Sales in the United States totaled about three billion dlrs, ICI executives said. In addition, Henderson said overall corporate growth will come from ICI's research and development activities, but the company intends to continue to grow through an acquisition program. ICI spent just under one billion dlrs for acquisitions during 1986, the largest of which was the 580 mln dlr purchase of Cleveland, Ohio-based Glidden Inc, a paints, resins and coatings company, from <Hanson Trust PLC>. ICI financial director Alan Clements said the company's borrowing limits are at a level of about 6.3 billion sterling, 1.5 billion of which have already been used. While the company has no current plans for a major acquisition, "we are ready to move quickly in the acquisition field if the need arises," Clements said.  
SAFECARD SERVICES <SFCD> SETS SPLIT, UPS PAYOUT. SafeCard Services Inc said its board declared a three-for-two stock split and is maintaining the quarterly dividend on post-split shares at the same six cts it now pays for an effective 50 pct increase. Both the split and the dividend are payable April 30 to holders of record March 31.  
WILTON ENTERPRISES INC <WLTN> 2ND QTR JAN 31 NET. Oper shr profit two cts vs loss 31 cts Oper net 72,000 vs loss 1,130,000 Sales 7,896,000 vs 9,333,000 1st half Oper shr profit 32 cts vs profit eight cts Oper net profit 1,187,000 vs profit 299,000 Sales 21.3 mln vs 26.0 mln NOTE: Current year net excludes tax credits of 54,000 dlrs in quarter and 945,000 dlrs in year.  
S.A.Y.<SAYI> TO TAKE 3RD QTR LOSS FROM SALE. S.A.Y. Industries Inc said it expects a loss of about two mln dlrs in its third quarter ended February 28 from the proposed sale of its Omnilab Inc health care unit. S.A.Y said its board of directors approved the unit's sale because Omnilab was losing about 140,000 dlrs a quarter. "We no longer see a near-term prospect for a reasonable return on our investment," Romilly Humphries, S.A.Y. president and chief executive officer said. S.A.Y. said proceeds from the sale would be used to increase the company's market share in automotive products packaging and diversify its packaging capabilities.  
SONESTA INTERNATIONAL HOTELS CORP <SNST> 4TH QTR. Shr profit 26 cts vs loss 86 cts Oper net profit 780,000 vs loss 2,609,000 Revs 12.2 mln vs 17.1 mln Year Oper shr profit 5.28 dlrs vs loss 1.11 dlrs Oper net profit 16.1 mln vs loss 3,311,000 Revs 64.9 mln vs 69.8 mln NOTE: 1986 year net excludes 598,000 dlr tax credit. 1986 net includes pretax gains on sale of property of 2,330,000 dlrs in quarter and 24.5 mln dlrs in year.  
<DOMCO INDUSTRIES LTD> 1ST QTR JAN 31 NET. Shr four cts vs 12 cts Net 248,000 vs 647,000 Revs 23.7 mln vs 21.9 mln  
BROWN GROUP INC <BG> VOTES REGULAR DIVIDEND. Qtly div 37-1/2 cts vs 37-1/2 cts prior qtr Pay 1 April Record 16 March  
BLOCKER ENERGY CORP <BLK> YEAR NET. Oper shr profit 11 cts vs loss 2.45 dlrs Oper net profit 3,594,000 vs loss 81.9 mln Revs 38.5 mln vs 48.2 mln NOTE: 1986 net excludes 68.5 mln dlr gain from debt extinguishment. 1985 net includes 72.0 mln dlr writedown of drilling rigs.  
LTX CORP <LTXX> 2ND QTR JAN 31 LOSS. Shr loss 28 cts vs loss 32 cts Net loss 2,585,000 vs loss 2,885,000 Sales 27.6 mln vs 23.5 mln Avg shrs 9,352,000 vs 9,049,000 1st half Shr loss 63 cts vs loss 94 cts Net loss 5,867,000 vs loss 8,405,000 Sales 51.9 mln vs 43.7 mln Avg shrs 9,349,000 vs 8,966,000 NOTE: Prior year net includes tax credits of 1,827,000 dlrs in quarter and 5,347,000 dlrs in half.  
CALPROP CORP <CPP> 4TH QTR NET. Shr 40 cts vs 25 cts Net 1,369,602 vs 628,193 Revs 12.5 mln vs 4,909,369 Avg shrs 3,460,217 vs 2,610,913 Year Shr 97 cts vs 54 cts Net 2,952,830 vs 1,414,369 Revs 37.0 mln vs 13.5 mln Avg shr 3,031,494 vs 2,609,313 Note: Prior qtr and year per share figures restated for 10 pct stock dividend of December 1986.  
SIS CORP <SISB> YEAR NET. Shr one ct vs nil Net 9,949,000 vs 3,799,000 Revs 15.5 mln vs 13.5 mln  
AMOSKEAG CO <AMOS> SETS QUARTERLY. Qtly div 30 cts vs 30 cts prior Pay March 31 Record March Five  
MEDTRONIC INC <MDT> SETS QUARTERLY. Qtly div 22 cts vs 22 cts prior Pay April 30 Record April 10  
SCITEX CORP <SCIXF> 4TH QTR LOSS. Shr loss 46 cts vs loss 1.17 dlrs Net loss 4,990,000 vs loss 12.8 mln Revs 47.0 mln vs 42.3 mln Year Shr loss 3.08 dlrs vs loss 1.28 dlrs Net loss 33.7 mln vs loss 13.3 mln Revs 132.8 mln vs 132.5 mln Avg shrs 10.9 mln vs 10.4 mln NOTE: Includes losses of 501,000 vs 83,000 in qtr and 2.2 mln vs 83,000 in year from equity of 50 pct-owned companies.  
ANITEC IMAGE TECHNOLOGY CORP <ANTC> SETS PAYOUT. Qtly div 7-1/2 cts vs 7-1/2 cts prior Pay April 10 Record March 27  
GREEN MOUNTAIN POWER CORP <GMP> SETS QUARTERLY. Qtly div 45 cts vs 45 cts prior Pay March 31 Record March 20  
DUAL-LITE INC <MDT> SETS QUARTERLY. Qtly div eight cts vs eight cts prior Pay May 11 Record April 24  
SCIENCE MANAGEMENT CORP <SMG> 4TH QTR OPER NET. Oper shr profit 14 cts vs loss 31 cts Oper net profit 374,000 vs loss 707,000 Revs 19.1 mln vs 15.5 mln Avg shrs 2,610,000 vs 2,560,000 Year Oper shr profit 20 cts vs loss 69 cts Oper net profit 530,000 vs loss 1,376,000 Revs 69.1 mln vs 64.3 mln Avg shrs 2,603,000 vs 2,565,000 NOTE: Excludes gain of 309,000 dlrs vs loss 72,000 dlrs in qtr and gains of 458,000 dlrs vs 23,000 dlrs in year from tax loss carryforwards. Includes gains of 76,000 dlrs and 378,000 dlrs in 1985 qtr and year, respectively.  
CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET. Oper shr 1.18 dlrs vs 58 cts Oper net 2,266,000 vs 1,037,000 Revs 45.8 mln vs 41.4 mln Avg shrs 1,924,000 vs 1,800,000 NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from benefit of tax loss carryforward. Results for Tel Aviv, Israel-based company translated at rate of one dlr to 1.485 new Israeli shekels.  
TANDEM COMPUTERS <TNDM> SEES HIGHER NET. Tandem Computers Inc said it expects higher earnings and revenues in its second fiscal quarter ending March 31 against a year ago. "We feel we will continue to see higher growth in the quarter," James Treybig, president and and chief executive officer, told a meeting of securities analysts. In the second fiscal quarter last year, Tandem earned 9,950,000 dlrs or 29 cts per share on revenues of 176.3 mln dlrs. Treybig declined to offer specific projections for the quarter but he said the results might be lower than those for the first quarter of fiscal 1987, when Tandem earned 27.1 mln dlrs or 58 cts a share. He said Tandem's second quarter is traditionally slower than the first. L.F. Rothschild Unterberg Towbin analyst Frederic Cohen estimated Tandem's second quarter net at 40 to 45 cts per share. For the full year, he said he expects the computer maker to earn about 2.40 dlrs a share. In fiscal 1986, Tandem earned 1.44 dlrs a share. Treybig, who founded the Cupertino, Calif.-based company, said he has seen a rebound in computer orders in the United States. "The U.S. economy is picking up, and buying decisions are being made. We didn't see that a year ago," he said. The executive said Tandem will increase its research and development spending to about 100 mln dlrs this year from 87 mln dlrs in fiscal 1986. He said the company plans to introduce several products, including two low-end systems and a data base that uses the SQL programming language, an industry standard. Tandem also won a major order from the <Bank of Tokyo>.  
OPPENHEIMER RAISES NWA <NWA> EARNINGS ESTIMATE. Oppenheimer and Co analyst Robert McAdoo raised his 1987 earnings estimate for NWA Inc, parent of Northwest Airlines, following a strong quarterly report by the company yesterday, according to Oppenheimer market strategist Michael Metz. NWA shares rose 1-5/8 to 74-3/8 in active trading. McAdoo raised his 1987 estimate to 7.50 dlrs a share from five dlrs and maintained a buy recommendation on the stock, Metz said. McAdoo was traveling and could not be reached for comment. Yesterday, Minneapolis-based NWA reported fourth quarter net of about 9.8 mln dlrs or 45 cts a share against a loss of two mln dlrs or nine cts in the 1985 quarter. For the year, earnings rose to 76.9 mln dlrs or 3.26 dlrs from 73.1 mln or 3.18 dlrs. The 1986 results include Republic Airlines since NWA acquired it Aug 12, 1986.  
YELLOW FREIGHT <YELL> SEES LOWER 1ST QTR NET. Yellow Freight System Inc said its expects 1987 first quarter profits to be substantially below the 14.2 mln dlrs or 50 cts a share earned in the same period a year ago. Revenues have been depressed by recent price discounting, added costs from expansion programs, lower shipping volumes and increased costs associated with severe weather conditions on the East coast, company officials told analysts here. An industry-wide rate hike of 2.9 pct, set for April one, will cover Yellow Freight's upcoming labor and other costs but will not make a contribution to operating margins, it said.  
LUCKY STORES INC REINSTATES QUARTERLY DIVIDEND AT 12.5 CTS PER SHARE.  LUCKY STORES INC REINSTATES QUARTERLY DIVIDEND AT 12.5 CTS PER SHARE  
HOMESTEAD FINANCIAL <HFL> UPS CASH DIVIDEND. Homestead Financial Corp said it has increased the dividend on its Class A common shares to 6-1/4 cts a share, from five cts prior, while declaring an initial dividend on its Class B common stock of 3-3/4 cts a share. Homestead said the two classes of stock emerged as part of its recapitalization plan which also doubled the number of authorized common, comprising both classes, to 11 mln shares. Homestead said the dividends are payable on April 6, to shareholders of record March 20. Homestead also said that class b shareholders who want to increase their dividends may exchange their shares for an equal number of class A shares on or before March 20.  
ELECTRO-SENSORS INC <ELSE> YEAR OPER NET. Oper shr 52 cts vs 51 cts Oper net 626,013 vs 613,127 Sales 4,544,929 vs 4,402,572 NOTE: Earnings exclude extraordinary securities loss of 29,532 dlrs, or two cts a share vs a gain of 81,358 dlrs, or seven cts a share  
LUCKY STORES INC <LKS> REINSTATES QUARTERLY DIV. Qtly div 12.5 cts vs nil Pay April 3 Record March 16 Note: in quarters preceeding 4th qtr, dividend was 29 cts.  
CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET. Oper shr 1.18 dlrs vs 58 cts Oper net 2,266,000 vs 1,037,000 Revs 45.8 mln vs 41.4 mln Avg shrs 1,924,000 vs 1,800,000 NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from benefit of tax loss carryforward. Results for Tel Aviv, Israel-based company translated at rate of one dlr to 1.485 new Israeli shekels.  
LONGVIEW FIBRE CO <LFBR> QUARTERLY DIVIDEND. Qtly div 40 cts vs 40 cts Pay April 10 Record March 25  
BEI HOLDINGS LTD <BEIH> 1ST QTR JAN 31 NET. Shr 13 cts vs eight cts Net 1,364,712 vs 881,082 Rev 11.6 mln vs 11.5 mln NOTE: Qtr includes extraordinary gain of 586,826 dlrs, or six cts a share, versus 183,850 dlrs or two cts a share in fiscal 1986's first qtr.  
ATLANTIC CITY ELECTRIC CO <ATE> SETS PAYOUT. Qtly div 65-1/2 cts vs 65-1/2 cts prior Pay April 15 Record March 19  
KEMPER CORP <KEMC> REGULAR PAYOUT SET. Qtly div 15 cts vs 15 cts previously Pay May 29 Record May Eight  
FFB <FFCT> SETS INITIAL QUARTERLY DIVIDEND. FFB Corp, parent of the First Federal Bank of Connecticut FSB, said it declared an initial quarterly dividend of five cts per share. The company said the dividend is payable March 31 to holders of record March 17.  
UNION CARBIDE SAYS OPERATING PROFITS FOR 4th qtr WERE 181 MLN DLRS VS LOSS THREE MLN DLRS.  UNION CARBIDE SAYS OPERATING PROFITS FOR 4th qtr WERE 181 MLN DLRS VS LOSS THREE MLN DLRS  
COMBINED INTERNMATIONAL <PMA> SEES STRONG 1987. Combined International Corp should have another strong year, President Patrick G. Ryan told analysts, although he declined to forecast earnings specifically. In 1986, the company reported operating income of 5.51 dlrs a share, up from 4.84 dlrs a share a year earlier. Revenues increased to 1.81 billion dlrs from 1.36 billion dlrs. Ryan said Combined is testing a direct response long-term care product through its Union Fidelity Life Insurance Co and has plans to offer it through Ryan Insurance Group. In answer to a question on Combined's possible exposure to AIDS-related health claims, Ryan said it was "minimal" although he conceded that every carrier who provides coverage is vulnerable.  
CHARTWELL GROUP LTD <CTWL> 4th qtr net. Shr nine cts vs three cts Net 549,000 vs 72,000 Rev 7.0 mln vs 2.8 mln Year Shr 49 cts vs 32 cts Net 2,441,000 vs 801,000 Rev 19.6 mln vs 9.7 mln  
GENERAL REFRACTORIES CO <GRX> 4TH QTR NET. Shr 17 cts vs 84 cts Net 709,000 vs 3,605,000 Rev 86.4 mln vs 87.0 mln Year Shr 1.79 dlrs vs 1.10 dlrs Net 7,452,000 vs 4,695,000 Rev 362.8 mln vs 316.0 mln NOTE: 1986 net includes gains from sale of non-operating assets of 800,000 dlrsm versus 1.2 mln dlrs in 1985. 1985 net includes nonrecurring cost of 2.6 mln dlrs and provision for separation pay of 1.5 mln dlrs.  
UNION CARBIDE <UK> SAYS LONG TERM DEBT RISES. Union Carbide Corp said its 1986 long term debt was 3.06 billion dlrs compared to 1.71 billion dlrs in 1985. The company released its audited 1986 results. The company also said its long term debt was reduced by about 1.5 billion dlrs from the third quarter to the end of the year by asset sales and equity offerings. Union Carbide sold its battery products, home and automobile products and agricultural products businesses in 1986. In the fourth quarter, it offered 30 mln shares of stock, raising about 650 mln dlrs. The asset sales and equity offering were part of a recapitalization plan undertaken by the chemicals company last year. Audited net earnings in 1986 of 496 mln dlrs or 4.78 dlrs a share compared to a 1985 loss of 581 mln dlrs or 2.78 dlrs were unchanged from the company's preliminary earnings report made on Jan 28. The earnings results for the fourth quarter were also unchanged. Included in the 1986 numbers are a 564 mln dlr gain from sale of the different businesses, a 270 mln dlr pension credit and a charge of 473 mln dlrs from the purchase of long term debt at a premium under the recapitalization. In the audited results released today, the company broke down results by business segment. Operating profit in the fourth quarter for all of the company's operations on a consolidated basis, before corporate and interest expense and taxes, was 181 mln dlrs against a loss of three mln dlrs in the 1985 quarter. In the year, operating profit was 791 mln dlrs compared to a loss of 253 mln dlrs in 1985. In a statement, the company said it defeated a hostile takeover attempt, by GAF Corp <GAF>, and recapitalized the company, adding, "While all this was going on, our continuing businesses performed very soundly, with substantial operating profit improvement over 1985." Carbon products posted operating profit of eight mln dlrs in the quarter, down from 29 mln dlrs, and 49 mln dlrs in the year against a loss of 146 mln dlrs. Chemicals and plastics had fourth quarter operating profit of 122 mln dlrs compared to a year-ago loss of 49 mln dlrs. In the year, chemicals and plastics earned 472 mln dlrs against losses of 142 mln dlrs in 1985. Operating income at industrial gases rose to 64 mln dlrs from 55 mln in the quarter and to 276 mln dlrs from 222 mln in the year. The company's specialties and services segment cut its losses in the quarter to 13 mln dlrs from 40 mln dlrs and in the year to three mln dlrs from 181 mln dlrs. Eliminations of business conducted between the company's industry segments contributed two mln dlrs to fourth quarter 1985 profits but did not affect the 1986 quarter. The eliminations caused losses of three mln dlrs compared to six mln dlrs in the year. The 1985 operating results include a host of unusual writeoffs and depreciation charges totaling 134 mln dlrs in the quarter and 906 mln dlrs in the year. Capital expenditures rose to 524 mln dlrs in 1986 from 501 mln dlrs. By segment, spending at carbon products fell to 42 mln dlrs from 57 mln dlrs and spending fell at specialties and services to 126 mln dlrs from 143 mln dlrs. At chemicals and plastics, expenditures rose to 147 mln dlrs from 133 mln and at industrial gases they rose to 209 mln dlrs from 168 mln dlrs. The company's cash and equivalents fell to 299 mln dlrs at year end from 430 mln dlrs at year end 1985, after a net decrease of 131 mln dlrs during 1986. Current assets at year-end fell to 2.41 billion dlrs from 4.43 billion dlrs and current liabilities fell to 1.88 billion dlrs from 2.38 billion.  
FIRST COMMERCIAL BANCORP <FCOB> 4TH QTR LOSS. Shr loss 49 cts vs loss 1.36 dlrs Net loss 928,835 vs loss 1,648,665 Year Shr loss 33 cts vs loss 4.21 dlrs Net loss 593,533 vs loss 4,970,951 Assets 203.9 mln Loans 151.5 mln Deposits 192.0 mln Note: 1986 loss included non-recurring expenses of 1,275,000 dlrs comprised of asset write-downs, legal proceeding and a 930,000-dlr provision for loan losses.  
HARCOURT BRACE JOVANOVICH INC <HBJ> 4TH QTR NET. Shr 23 cts vs 28 cts Net 8,877,000 vs 9,530,000 Revs 342 mln vs 278.9 mln Avg shrs 39.4 mln vs 34 mln Year Shr 1.91 dlrs vs 1.62 dlrs Net 70.5 mln vs 50.5 mln Revs 1.3 billion vs 990.5 mln Avg shrs 37 mln vs 31.3 mln NOTE: On Dec one, 1986, company acquired Holt, Rinehart and Winston and W.B. Saunders and The Dryden Press and their foreign subsidiaries. By including these companies for the single month of December 1986, 4th qtr earnings were raised by seven cts per shr and for the year by eight cts per shr.  
SHELL FRANCAISE RETURNS TO PROFIT IN 1986. Shell Francaise <SFMF.PA>, a subsidiary of <Shell Petroleum NV>, returned to the black last year for the first time since 1982, with parent company net profit of 43 mln francs against losses of 968 mln in 1985 and 1.07 billion in 1984. In 1982 it posted a profit of 329 mln. The company said in a statement that cash flow had improved strongly although it remained negative at 182 mln francs against 1.34 billion in 1985, due largely to improved performances by its main profit centres. It said the results could have been even better had it not been for the collapse of refining and sales profit margins in the last quarter of the year. In 1986 Shell sold 14.74 mln tonnes of oil products against 14.52 mln tonnes in 1985. The company said the results were in line with its targets for the second year of its three-year recovery programme. Meanwhile, <Societe Shell Chimie) said it also returned to profit in 1986, for the first time since 1976, posting net profit of 160 mln francs against a 1985 loss of 57 mln. No other details were available.  
FAIRMOUNT CHEMICAL CO INC <FMTC> 4TH QTR LOSS. Shr loss 28 cts vs loss 29 cts Net loss 584,100 vs loss 459,500 Sales 1,339,800 vs 1,6390,800 Year Shr loss 64 cts vs loss 79 cts Net loss 1,314,700 vs loss 1,237,100 Sales 7,249,600 vs 6,311,500  
HUMANA INC <HUM> REGULAR DIVIDEND. Qtly div 19 cts vs 19 cts in prior qtr Payable May one Record April two  
FAIRFIELD COMMUNITIES INC <FCI> 10 MOS DEC 31. Shr loss 1.62 dlrs vs profit 83 cts Net loss 17.2 mln vs profit 8.3 mln Revs 264.0 mln vs 338.0 mln NOTE:Year ago figures based on 12 months ended February 28, 1986 because company changed reporting period to end December 31. 1986 10 months loss includes 10.3 mln dlrs writedown of certain assets.  
CARVER CORP <CAVR> 4TH QTR NET. Shr 20 cts vs 17 cts Net 680,000 vs 533,000 Sales 6,473,000 vs 5,996,000 Year Shr 57 cts vs 84 cts Net 1,967,000 vs 2,099,000 Sales 20.8 mln vs 19.0 mln  
INTER-CITY GAS CORP 4TH QTR SHR 36 CTS VS 68 CTS.  INTER-CITY GAS CORP 4TH QTR SHR 36 CTS VS 68 CTS  
FREMONT GENERAL CORP <FRMI> 4TH QTR OPER NET. Oper shr profit 63 cts vs loss 1.15 dlrs Oper net profit 6,629,000 vs loss 12.4 mln Revs 23.6 mln vs 22.4 mln Year Oper shr profit 1.65 dlrs vs loss 1.28 dlrs Oper net profit 17.5 mln vs loss 13.8 mln Revs 93.1 mln vs 86.8 mln Note: Oper data does not include loss from discontinued operations of 7,932,000 dlrs, or 73 cts per shr in 4th qtr 1985, loss of 40.5 mln dlrs, or 3.83 dlrs per shr in the 1986 year or gain of 104.3 mln dlrs, or 9.68 dlrs per shr in 1985. Also does not include 4th qtr 1985 extraordinary loss of 1,028,000 dlrs, or ten cts per shr.  
ELXSI LTD <ELXSF> 4TH QTR LOSS. Shr loss four cts vs loss 34 cts Net loss 2,922,000 vs loss 19.9 mln Revs 4,071,000 vs 8,012,000 Year Shr loss 23 cts vs loss 79 cts Net loss 17.3 mln vs loss 46.2 mln Revs 22.4 mln vs 28.6 mln  
<NEWSCOPE RESOURCES LTD> YEAR LOSS. Shr loss 94 cts vs profit 28 cts Net loss 6,319,337 vs profit 1,702,016 Revs 2,899,513 vs 5,239,106 Note: 1986 net includes 5,250,000 dlr writedown of oil and gas properties.  
TIMES MIRROR CO <TMC> QUARTERLY DIVIDEND. Qtly div 41 cts vs 41 cts Pay June 10 Record May 29  
INTER-CITY GAS CORP <ICG> 4TH QTR NET. Shr 36 cts vs 68 cts Net 10.0 mln vs 16.1 mln Revs 441.6 mln vs 470.8 mln YEAR Shr 86 cts vs 1.77 dlrs Net 29.1 mln vs 44.1 mln Revs 1.43 billion vs 1.54 billion Note: 1986 fl-yr net includes 9.3 mln dlr writedown of U.S. oil and gas properties partly offset by 1.1 mln dlr extraordinary gain from tax gains and proceeds from sale of Minnesota utility operations. 1985 net includes extraordinary gain of 892,000 dlrs. Shr after preferred divs.  
BROWN TRANSPORT CO INC <BTCI> 4TH QTR NET. Shr profit 26 cts vs profit 10 cts Net profit 1,371,000 vs profit 482,000 Revs 48 mln vs 45.7 mln Avg shrs 5.20 mln vs 5.15 mln 12 mths Shr profit 1.05 dlrs vs loss 34 cts Net profit 5,454,000 vs loss 1,766,000 Revs 191.7 mln vs 185.2 mln Avg shrs 5.20 mln vs 5.15 mln  
METRO MOBILE CTS INC <MMCT> FIRST QTR LOSS. Qtr ends Dec 31 Shr loss 33 cts vs loss 16 cts Net loss 5,632,426 vs loss 2,373,358 Revs 3,277,976 vs 1,535,550 Avg shrs 16.9 mln vs 14.4 mln  
<SPAR AEROSPACE LTD> YEAR NET. Shr basic 42 cts vs 1.41 dlrs Shr diluted 42 cts vs 1.33 dlrs Net 4,394,000 vs 13,070,000 Revs 191.0 mln vs 223.3 mln  
SPAR SEES SEES STRONG FIVE-YEAR GROWTH. <Spar Aerospace Ltd>, reporting a sharply lower 1986 profit, said it anticipated solid profit and revenue growth during the next five years. "Looking to the longer term, Spar is confident that its continuing concentration on advanced robotics, satellite-based communications and electro-optical defense systems will lead to significant growth in revenues and earnings over the next five years," the company said. It also forecast higher 1987 sales due to an increased order backlog. Revenues last year fell to 191 mln dlrs from 223.3 mln while profit fell to 4.4 mln dlrs from 13.1 mln. Spar added that lower development costs in the communications group and a return to normal operations in gears and transmissions and aviation services "will remove a serious drain on profits" this year. It attributed its reduced 1986 earnings to communications group losses resulting from continued heavy investment in new products and market development, a four-month strike at its Toronto plants and delays in receipt of authorization from customers to start work on new programs.  
CHESAPEAKE UTILITIES CORP <CHPK> REGULAR DIV. Qtly div 28-3/4 cts vs 28-3/4 cts prior Pay April three Record March 13  
SWIFT INDEPENDENT PACKING CO <SFTPr> 1ST QTR NET. Periods ended January 31 Net 1,443,000 vs 3,539,000 Revs 765.2 mln vs 685.8 mln  
(CAMBIOR INC) FIVE MTHS DEC 31 NET. Shr 39 cts vs not given Net 8,801,000 vs not given Revs 33.2 mln vs not given  
PARADYNE <PDN> PLEADS GUILTY TO CRIMINAL CHARGE. Paradyne Corp said it pleaded guilty to criminal charges of conspiracy to defraud the Social Security Administration and agreed to pay 1.2 mln dlrs in fines and costs to the U.S. Government. The company also reached agreements in principle for an 8.1 mln dlr settlement of class action law suits. About 2.9 mln dlrs of the class action settlement will be provided by Paradyne's insurance carrier. The settlement is contingent on court approval after notice to class members, it said. The criminal case settlement dismisses all charges including bribery and false statement, except for conspiracy to which Paradyne pleaded guilty. The criminal settlement includes the lifting of the government's suspension, the dismissal of the federal civil false claims suit and all charges against the individuals. Of the 2.9 mln dlrs the insurance carrier will provide for the civil settlement, 750,000 dlrs will go to settle a derivative lawsuit. For the year ended December 31, Paradyne reported a net loss of 38.5 mln dlrs. The year-end results include an 8.0 mln dlrs provision for future legal and or settlement costs to cover the civil and criminal settlements announced today. Paradyne also said it named Jerry Kendall as president and chief executive officer, succeeding Robert Wiggins who resigned as chairman and chief executive officer as part of the settlement of the indictment. Kendall formerly served as executive vice president and chief operating officer. The company also said that due to the sluggish marketplace, it does not expect to be profitable in the first quarter but is optimistic about the outlook for the year. For the first quarter of 1986, the company reported net income of 875,000 dlrs on sales of 66.0 mln dlrs. Wiggins was among five Paradyine executives who were charged along with three former officers in a 1985 federal indictment stemming from a 115 mln contract awarded to Paradyne in 1981 to build a computer network for the Social Security Administration. The men were accused of conspiring to bribe government officials and defaud the Social Security Administration. Wiggins and other defendants were also charged with providing false testimony and obstructing justice during a Securities and Exchange Commission investigation.  Under the settlement announced today, federal prosecutors agreed to defer all charges against Wiggins and three other defendants under a one-year pretrial agreement. The charges would then be dropped if the defendants successfully complete the probation period. Details of the requirements in the agreement were not immediately available.  
NCA CORP <NCAC> 4TH QTR LOSS. Shr loss 45 cts vs loss 1.34 dlrs Net loss 1,240,000 vs loss 3,621,000 Revs 6,264,000 vs 4,626,000 Year Shr loss 90 cts vs loss 2.01 dlrs Net loss 2,487,000 vs loss 5,406,000 Revs 20.8 mln vs 21.7 mln  
BIOMEDICAL DYNAMICS CORP <BMDC> 4TH QTR NET. Shr profit one ct vs loss two cts Net profit 52,405 vs loss 67,967 Sales 289,572 vs 188,713 Year Shr loss one cts vs loss five cts Net loss 51,019 vs loss 201,680 Sales 1.1 mln vs 490,935  
E.A. VINER HOLDINGS LTD <EAVKF> 4TH QTR LOSS. Shr loss 10 cts vs profit seven cts Net loss 918,000 vs profit 585,000 Revs 5,475,000 vs 4,430,000 YEAR Shr profit 32 cts vs loss 24 cts Net profit 2,909,000 vs loss 1,501,000 Revs 23.7 mln vs 15.0 mln Note: 1986 4th qtr net includes 1.5 mln U.S. dlr, or 17 ct shr, writedown of stake in Heck's Inc <HEX> and 300,000 U.S. dlr, or three ct shr, writedown of arbitrage positions. 1986 fl-yr net includes 900,000 dlr net writedown of stake in Heck's. U.S. dlrs.  
VINER <EAVKF> VIABLE AFTER HECK'S <HEX> MOVE. E.A. Viner Holdings Ltd said the earlier reported Chapter 11 bankruptcy filing of Heck's Inc <HEX>, in which Viner holds 408,000 shares, would not materially affect Viner's capital position or its ability to carry on its profitable brokerage business. Viner said its brokerage subsidiary, Edward A. Viner and Co had regulatory capital of 24.5 mln U.S. dlrs at year-end 1986. The company said Heck's Chapter 11 filing could, however, affect Viner's previously reported legal action to recover costs from an aborted merger agreement with Heck's. It said it and the Toussie-Viner group, with which it made the merger offer, were assessing their options regarding the Heck's investment. Viner earlier reported a fourth quarter loss of 918,000 U.S. dlrs after a 1.5 mln dlr writedown of its stake in Heck's. It earned 585,000 dlrs in the previous fourth quarter. Full-year earnings totaled 2.9 mln dlrs against a year-earlier loss of 1.5 mln dlrs. The full-year earnings included a 900,000 dlr net writedown of the Heck's stake, it said.  
<FOUR SEASONS HOTELS INC> YEAR NET. Oper shr 99 cts vs 54 cts Oper net 9,515,000 vs 3,449,000 Revs 509.3 mln vs 440.5 mln Note: 1985 net excludes extraordinary gain of 1.2 mln dlrs.  
<IVEY PROPERTIES INC> RAISES QUARTERLY DIVIDEND. Ivey Properties Inc said it raised its quarterly dividend to 18 cts a share from 14 cts and declared both an extra dividend of 27 cts a share and a 50 pct stock dividend. It said the dividends will be paid April one to shareholders of record March  16. For the stock dividend, Ivey said it will pay for fractional shares at 25 dlrs per share.  
TPA OF AMERICA INC <TPS> 4TH QTR LOSS. Shr loss five cts Net loss 753,000 Revs 8,932,000 Avg shrs 16.0 mln Year Shr loss seven cts Net loss 995,000 Revs 27.9 mln Avg shrs 14.8 mln NOTE: Company started operating in August 1985. Results reflect change in fiscal year from November 30 end.  
MCGRATH RENTCORP <MGRC> SEES NET RISING. McGrath RentCorp said as a result of its December acquisition of Space Co, it expects earnings per share in 1987 of 1.15 to 1.30 dlrs per share, up from 70 cts in 1986. The company said pretax net should rise to nine to 10 mln dlrs from six mln dlrs in 1986 and rental operation revenues to 19 to 22 mln dlrs from 12.5 mln dlrs. It said cash flow per share this year should be 2.50 to three dlrs.  
SILVER STATE MINING CORP <SSMC> 4TH QTR NET. Shr one ct vs one ct Net 528,790 vs 286,969 Revs 2,537,803 vs 773,729 Year Shr seven cts vs one ct Net 2,429,576 vs 404,394 Revs 6,726,327 vs 1,150,961  
SIZZLER RESTAURANTS INTERNATIONAL INC <SIZZ> NET. Shr 15 cts vs 14 cts Net 2,547,000 vs 2,242,000 Revs 56.7 mln vs 44.0 mln Avg shrs 17.6 mln vs 15.6 mln Nine mths Shr 54 cts vs 54 cts Net 9,249,000 vs 8,334,000 Revs 173.3 mln vs 134.3 mln Avg shrs 17.1 mln vs 15.5 mln  
DONEGAL GROUP INC <DGIC> YEAR NET. Shr six cts Net 155,764 Revs 6,506,792 NOTE: Company formed in August 1986.  
PETER MILLER APPAREL GROUP 3RD QTR JAN 31 LOSS. Shr loss 28 cts vs profit seven cts Net loss 931,000 vs profit 7,000 Revs 2.3 mln vs 2.0 mln Nine mths Shr loss 55 cts vs profit seven cts Net loss 1,619,000 vs profit 185,000 Revs 7.7 mln vs 7.1 mln NOTE: Shr figures adjusted for issue of 600,000 shares in October, 1986. Avg shrs not given. Full name is <Peter Miller Apparel Group Inc>.  
KRELITZ INDUSTRIES INC <KRLZ> 3RD QTR NET. Period ended Jan 31 Shr seven cts vs 14 cts Net 136,000 vs 274,000 Sales 48.4 mln vs 38.2 mln Nine mths  Shr 30 cts vs 17 cts Net 573,000 vs 328,000 Sales 140.0 mln vs 102.4 mln NOTE: Prior year period ended Sept 30 Comparable periods reflect change in fiscal yearend to April from December  
DONEGAL <DGIC> PROJECTS FULL YEAR RESULTS. Donegal Group Inc, which today reported earnings of 155,764 dlrs on revenues of 6,506,792 dlrs for the period from August 26 startup through the end of 1986, said it expects "much improved" profits for the full year 1987 on revenues of about 32 mln dlrs.  
FUQUA INDUSTRIES INC <FQA> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay April One Record March 20  
<M-CORP INC> YEAR DEC 28 NET. Shr 73 cts vs 55 cts Net 1,691,878 vs 1,117,747 Revs 7.1 mln vs 4.9 mln Avg shrs 2.3 mln vs 2.0 mln NOTE: Share results reflect two-for-one stock split in June, 1986.  
<M-CORP INC> RAISES DIVIDEND. Semi-annual div 7-1/2 cts vs five cts Pay April nine Record March 26  
AMERICAN STORES CO 4TH QTR SHR 1.57 DLRS VS 1.60 DLRS.  AMERICAN STORES CO 4TH QTR SHR 1.57 DLRS VS 1.60 DLRS  
CENTRAL SPRINKLER CORP <CNSP> 1ST QTR JAN 31 NET. Shr 19 cts vs 20 cts Shr diluted 18 cts vs 18 cts Net 578,000 vs 554,000 Sales 10.7 mln vs 10.4 mln Avg shrs 3,006,s302 vs 2,795,820 Avg shrs diluted 4,271,488 vs 4,081,534  
<FAR WEST INDUSTRIES INC> RAISES DIVIDEND. Annual div four cts vs 1.76 cts Pay March 20 Record March 15  
<FAR WEST INDUSTRIES INC> YEAR NET. Shr 23 cts vs 17 cts Net 761,000 vs 490,000 Revs 7.3 mln vs 4.5 mln  
SELECTERM INC <SLTM> 4TH QTR LOSS. Shr loss not given vs profit 16 cts Net loss 309,000 vs profit 426,000 Revs 6,358,000 vs 6,747,000 Year Shr profit 27 cts vs profit 76 cts Net profit 713,000 vs profit 2,021,000 Revs 24.9 mln vs 27.1 mln NOTE: Pretax net profits 113,000 dlrs vs 824,000 dlrs in quarter and 1,863,000 dlrs vs 3,606,000 dlrs in year.  
RESIDENTIAL MORTGAGE INVESTMENTS INC <RMI>PAYOUT. Qtly div 24 cts vs 24 cts prior Pay April 10 Record March 31  
OKC LIMITED PARTNERSHIP <OKC> SETS LOWER PAYOUT. OKC Limited Partnership said it will make a five ct per share distribution to unitholders, down from 15 cts in December and payable March 30 to holders of record March 18. The partnership said the payout is the largest quarterly cash distribution allowable under terms of its letter of credit.  
BIOTECH RESEARCH LABORATORIES INC <BTRL> 4TH QTR. Shr profit one ct vs loss seven cts Net profit 63,761 vs loss 43,006 Revs 1,961,219 vs 1,413,859 Year Shr loss seven cts vs loss 20 cts Net loss 380,273 vs loss 1,108,151 Revs 6,245,012 vs 5,368,522 Shr out 5,950,000 vs 5,462,547  
AMERICAN STORES CO <ASC> 4TH QTR NET. Shr 1.57 dlrs vs 1.60 dlrs Net 55.7 mln vs 56.5 mln Revs 3.7 billion vs 3.6 billion Year Shr 3.79 dlrs vs 4.11 dlrs Net 144.5 vs 154.5 mln Revs 14.0 billion vs 13.9 billion NOTE: 1986 4th qtr and yr per shr amts includes reduction of 15 cts per shr for establishment of reorganization reserves. Tax increase reduced 1986 yr per shr by 26 cts.  
BOSTON BANCORP <SBOS> SETS TWO FOR ONE SPLIT. Boston Bancorp said its board declared a two-for-one stock split, payable March 31, record March 17.  
<PETER MILLER APPAREL GROUP INC> 3RD QTR LOSS. period ended January 31 Shr loss 28 cts vs profit seven cts Net loss 931,000 vs profit 7,000 Sales 2,303,000 vs 2,006,000 Nine mths Shr loss 55 cts vs profit seven cts Net loss 1,619,000 vs profit 185,000 Sales 7,684,000 vs 7,059,000 Note: per share reflects issue of 600,000 shares in October 1986.  
CINEPLEX ODEON CORP YEAR OPER SHR BASIC 1.04 DLRS VS 77 CTS.  CINEPLEX ODEON CORP YEAR OPER SHR BASIC 1.04 DLRS VS 77 CTS  
UNITED INDUSTRIAL CORP <UIC> 4TH QTR LOSS. Shr loss 1.27 dlrs vs profit 43 cts Net loss 17.0 mln vs profit 5,667,000 Sales 67.8 mln vs 70.1 mln Year Shr loss 69 cts vs profit 2.18 dlrs Net loss 9,174,000 vs profit 29.1 mln Sales 272.5 mln vs 269.4 mln Avg shrs 13.3 mln vs 13.4 mln NOTE: 1986 net includes tax credits of 14.5 mln dlrs in quarter and 8,408,000 dlrs in year. 1985 year net includes 616,000 dlr loss from discontinued operations and 10.6 mln dlr gain on their disposal. 1986 net both periods includes 19.1 mln dlr provision for future losses from several major projects in defense contractor subsidiary. Backlog 310 mln dlrs, up six pct from a year before. Share adjusted for 10 pct stock dividend in February 1987.  
<CINEPLEX ODEON CORP> YEAR NET. Oper shr basic 1.04 dlrs vs 77 cts Oper shr diluted 89 cts vs 60 cts Oper net 31.6 mln vs 12.5 mln Revs 500.6 mln vs 170.9 mln Avg shrs 29.1 mln vs 14.3 mln Note: 1985 net excludes extraordinary gain of 1,756,000 dlrs or 12 cts shr basic and eight cts shr diluted. 1986 net involves 53-week reporting period to reflect change in yr-end to coincide with calendar yr.  
PROSPECT GROUP INC <PROSZ> 4TH QTR LOSS. Shr loss 10 cts vs loss 50 cts Net loss 1,830,000 vs loss 3,584,000 Revs 40.7 mln vs 26.8 mln Avg shrs 19.2 mln vs 7,115,847 12 mths Shr profit 10 cts vs loss 91 cts Net profit 1,422,000 vs loss 6,195,000 Revs 185.7 mln vs 126.9 mln Avg shrs 14.8 mln vs 6,811,280 NOTES: In May 1986 Prospect raised 101,810,0000 dlrs from an initial public offering of common stock. The company purchased in March 1986 MidSouth Corp, a regional railroad company in Mississippi and Louisiana, which contributed sales of 39.5 mln dlrs and operating income of 16.3 mln dlrs during first nine months of operation.  
FRANCE FUND INC <FRN> SETS INITIAL DIVIDEND. France Fund Inc said its board declared an initial dividend of 1.12 dlrs per share, payable April six, to holders of record March 20. The fund said the dividend represents two cts per share for net investment income realized during 1986 and 1.10 dlrs from net taxable gains realized during the year.  
HEINEKEN N.V. <HEIN.AS> 1986 YEAR. Pre-tax profit 513.2 mln guilders vs 545.5 mln Net profit 285.3 mln guilders vs 265.4 mln Consolidated net turnover 6.68 billion guilders vs 6.40 billion Net profit per 25.00 guilder nominal share 11.11 guilders vs 10.33, taking into account one-for-three scrip issue last year Final dividend two guilders vs same, making total 3.50 guilders vs same  
NATIONAL SECURITY INSURANCE CO <NSIC> 4TH QTR. Oper shr loss 15 cts vs profit 57 cts Oper net loss 151,000 vs profit 570,000 Year Oper shr profit 2.08 dlrs vs loss 12 cts Oper net profit 2,122,000 vs loss 127,000 NOTE: Net excludes realized capital loss 19,000 dlrs vs gain 896,000 dlrs in quarter and gains 1,646,000 dlrs vs 1,331,000 dlrs in year. 1986 net both periods excludes tax credit 1,288,000 dlrs.  
CYPRUS MINERALS <CYPM> NAMED IN SUITS. Cyprus Minerals Co said along with about 40 other companies, it has been named a defendant in 23 product liability lawsuits filed in California by individual tireworkers aleging injury as a result of exposure to talc and other products. It said other suits are expected to be brought. Cyprus, which produces talc, said it has significant factual and legal defenses and substantial insurance coverage and does not expect the suits to have a material adverse impact on its financial condition.  
ARUNDEL CORP <ARL> 4TH QTR NET. Shr 1.73 dlrs vs 1.66 dlrs Net 3,637,000 vs 3,789,000 Revs 27.6 mln vs 26.6 mln Year Shr 3.47 dlrs vs 2.34 dlrs Net 7,815,000 vs 5,340,000 Revs 94.3 mln vs 81.9 mln  
GULF STATES UTILITIES <GSU> GETS QUALIFIED AUDIT. Gulf States Utilities Co said auditor Coopers and Lybrand has issued a qualified opinion on 1986 financial statements. Gulf States said the audit opinion satated that without sufficient rate increases or funds from other sources, Gulf states may be unable to maintain its financial viability, which is necessary to permit the realization of its assets and the liquidation of its liabilities in the ordinary course of business. IT said it received a similar qualified opinion in 1985.  
SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 NET. Shr profit 15 cts vs loss six cts Net profit 1,051,000 vs loss 381,000 Revs 50.8 mln vs 41.8 mln Avg shrs 7,033,00 vs 6,557,000 NOTE: 1987 net includes tax credits equal to six cts vs one cent in 1986.  
LEASEWAY TRANSPORTATION CORP <LTC> 4TH QTR LOSS. Oper shr loss 39 cts vs profit 62 cts Oper net loss 4,628,000 vs profit 7,256,000 Revs 338.1 mln vs 327.9 mln Year Oper shr profit 1.12 dlrs vs profit 1.88 dlrs Oper net profit 13.2 mln vs 22.2 mln Revs 1.32 billion vs 1.29 billion NOTE: Net excludes gains from discontinued leasing operations of 37.6 mln dlrs vs 40.3 mln dlrs in year and 32.6 mln dlrs vs 34.3 mln dlrs in quarter.  Results restated for discontinued operations. 1986 net both periods includes charge 6,300,000 dlrs from elimination of investment tax credits.  
NCH CORP <NCH> 3RD QTR JAN 31 NET. Shr 51 cts vs 44 cts Net 4,710,000 vs 4,086,000 Sales 109.2 mln vs 98.2 mln Nine mths Shr 1.62 dlrs vs 1.39 dlrs Net 15.0 mln vs 13.6 mln Sales 314.6 mln vs 279.7 mln  
NATIONWIDE HAD 1986 PROPERTY-CASUALTY LOSS. <Nationwide Mutual Insurance Co> said its property-casualty companies had a net loss of 56 mln dlrs last year while its life insurance operations earned 66.8 mln dlrs. Nationwide said its property-casualty group, the fourth-largest U.S. property-casualty insurer had a 106 mln dlr loss in 1986. Nationwide Life Insurance Co earned 62.8 mln dlrs in 1985, with last year's profit including record capital gains of 14.4 mln dlrs, up from gains of 2.6 mln dlrs the previous year. The company said its property-casualty group had a record loss from insurance operations last year of 859 mln dlrs after policyholders' dividends, up 25 pct from 1985's 710 mln dlrs. Nationwide said a surge in claims from personal auto insurance and the volatile commercial liability coverages during a period of unprecedented sales growth generated the loss. The company said over 576 mln dlrs of last year's group losses came from commercial insurance lines and 282 mln dlrs from its personal auto insurance business. Partially offsetting 1986's record insurance losses, Nationwide said, were record investment gains of 775 mln dlrs and a 28 mln dlr federal tax credit. The investment gains were up 39 pct from 1985's gains of 559 mln dlrs.  
COMPUTER MEMORIES INC <CMIN> 3RD QTR LOSS. Period ended December 31. Shr loss nine cts vs loss 1.92 dlrs Net loss 950,000 vs loss 21,334,000 Revs 580,000 vs 22.2 mln Nine Mths Shr loss six cts vs loss 1.23 dlrs Net loss 694,000 vs loss 13,710,000 Revs 5,129,000 vs 111.9 mln Note: Current qtr includes tax loss of 118,000 vs loss of 476,000 dlrs.  
TRENWICK GROUP INC <TREN> 4TH QTR NET. Oper shr profit 18 cts vs loss four cts Oper net profit 1,847,000 vs loss 282,000 Revs 25.9 mln dlrs vs 8,626,000 drs 12 mths Oper shr profit 39 cts vs loss 24 cts Oper net profit 3,262,000 vs loss 1,555,000 revs 67.5 mln vs 27.9 mln dlrs. NOTE: 1986 qtr and year excludes investment gains of 1,541,000 and 1,865,000, respectively, and 1985 qtr and year includes investment gains of 301,000 dlrs and 1,424,000.  
BUSH <BSH> REVISES 4TH QTR, YEAR RESULTS UP. Bush Industries Inc said that after an audit it has revised upwards its 1986 fourth quarter and year end results. On February 12 it reported unaudited results. Under the audited amounts, 1986 fourth quarter income was 1,098,978 mln dlrs, or 55 cts a share. The unaudited income for the period was 1,014,000, or 51 cts per share. For the year, the audited amounts showed earnings of 2,505,978, or 1.25 dlrs per share. The prior results reported income of 2,421,000, or 1.21 dlrs per share. Sales figures for both periods did not differ significantly from prior amounts.  
CLEVITE INDUSTRIES INC <CLEV> 4TH QTR OPER LOSS. Oper net loss 411,000 vs profit 875,000 Sales 69.7 mln vs 70.5 mln Year Oper net profit 6,258,000 vs profit 4,785,000 Sales 299.5 mln vs 297.2 mln Note: Company made initial public offering in June, 1986. Assuming the offering had occurred on Jan. 1, 1986, operating net income per share would have been 85 cts a share for 1986. 1986 oper net excludes one-time charge of 16.8 mln dlrs, or 2.46 dlrs a share, in qtr and year due to the February 1987 sale of the company's engine parts division. Oper net for 1986 year also includes profit from discontinued operations of 360,000 dlrs, or five cts a share. Oper net for 1986 excludes extraordinary loss of 1.1 mln dlrs, or 17 cts a share, due to the June 1986 write-off of unamortized debt issue costs from the public offering. 1985 oper net excludes extraordinary profit of 1.1 mln dlrs.  
CMS ADVERTISING SETS 3-FOR-2 STOCK SPLIT. <CMS Advertising Inc> said its board has approved a three-for-two stock split in the form of a dividend payable March 30 to holders of record March 16. The company said a similar split was paid December eight, leaving it with 2,344,200 shares outstanding. CMS Advertising said the next split will result in a proportionate reduction in the exercise price of its stock purchase warrants to 1.67 dlrs a share from 2.50 dlrs.  
CIE FINANCIERE DE PARIBAS <PARI.PA> 1986 YEAR. Parent company net profit 385 mln francs vs 226.9 mln Dividend five francs vs no comparison Note - The financial and banking group was privatised by the government in January this year.  
6-MAR-1987 12:28:37.20. 6-MAR-1987 12:28:37.20 
INT'L TOTALIZATOR <ITSI> SEES BETTER 1ST QTR. International Totalizator Systems Inc Vice President of Finance Joel Graff said he expects to report an improved first quarter compared to the 377,000 dlr loss reported in the year ago quarter. "A profit looks quite favorable," Graff said. Last week, the automated ticket systems supplier reported a loss of 1.2 mln dlrs for the 1986. Graff said "we invested heavily in 1986, which we believe will result in higher future growth and earnings for the company."  
ABN SAYS PROFIT RISE ENCOURAGING IN VIEW DOLLAR. Algemene Bank Nederland N.V. <ABNN.AS> chairman Robertus Hazelhoff said the bank's 10.3 pct increase in net 1986 profit to 527 mln guilders from 478 mln in 1985 was encouraging in view of the sharply lower dollar. Hazelhoff, speaking at a press conference after the release of ABN's 1986 results, said a sharp decrease in foreign earnings had been compensated by a strong domestic performance, notably in the securities business. He said the bank was also proposing a one for 10 share-split which should facilitate trade in the bank's stock. News of the split sparked a 14 guilder rise in ABN's share price on the Amsterdam bourse to a close of 517 guilders. Prospects for 1987 hung on three uncertainties, namely the future trend of the dollar, the level of interest rates and ABN's share of equities trade, Hazelhoff said. Provisions for general contingencies were reduced in 1986 by 4.1 pct to 575 mln guilders, while taxes increased by 2.1 pct to 242 mln guilders, he added. Lower global interest rates in 1986 had nipped earnings margins via traditional lending activities, he said. Hazelhoff said ABN was unlikely to continue reducing risk provisions in the future but he noted the bank was not overly concerned about default by Latin American debtors, a factor which brokers say has distanced Dutch insititutions from bank stocks recently. He said that of the bank's estimated 25 financially troubled sovereign debtors, about one quarter were Latin American countries. These would ultimately pay up, he said. He added that losses incurred through loans to tin producers in the wake of the tin council crisis at end-1985 had been written off.  
SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 OPER NET. Oper shr profit nine cts vs loss seven cts Oper net profit 628,000 vs loss 491,000 Sales 50.7 mln vs 41.8 mln Avg shrs 7,033,000 vs 6,557,000 Note: Oper net excludes extraordinary profit of 423,000 dlrs, or six cts a shr, and 110,000 dlrs, or one ct a share, respectively, in 1987 and 1986 quarters, from utilization of tax loss carryforwards.  
CETEC CORP <CEC> 4TH QTR NET. Oper shr two cts vs eight cts Oper net 41,000 vs 153,000 Sales 7,456,000 vs 7,965,000 Year Oper shr 22 cts vs 50 cts Oper net 434,000 vs 1,103,000 Sales 31 mln vs 33.6 mln Note: Current qtr and year figures exclude loss from discontinued operations of 384,000 dlrs, or 20 cts per share. Prior qtr and year figures exclude losses from discontinued operations of 1.9 mln dlrs, or 88 cts per share and 2.3 mln dlrs, or 1.07 dlrs per share, respectively.  
RICHTON INTERNATIONAL CORP <RIHL> 3RD QTR JAN 31. Shr 18 cts vs 39 cts Net 507,000 vs 762,000 Sales 11.3 mln vs 11.7 mln Avg shrs 2,789,000 vs 1,961,000 Nine mths Shr 39 cts vs 90 cts Net 1,076,000 vs 1,752,000 Sales 32.9 mln vs 33.3 mln Avg shrs 2,771,000 vs 1,955,000  
VALTEK INC <VALT> 3RD QTR JAN 31 NET. Shr 18 cts vs 19 cts Net 400,413 vs 421,451 Revs 9,343,228 vs 8,213,449 Nine mths Shr 39 cts vs 46 cts Net 853,891 vs 1,011,999 Revs 24.6 mln vs 22.3 mln  
THE WRITER CORP <WRTC> 4TH QTR LOSS. Shr loss 30 cts vs profit 11 cts Net loss 1,247,000 vs profit 454,000 Revs 12.3 mln vs 17.5 mln Year Shr loss 24 cts vs profit 32 cts Net loss 979,000 vs profit 1,303,000 Revs 60.6 mln vs 61.7 mln  
ROCKY MOUNTAIN MEDICAL CORP <RMEDU> 1ST QTR LOSS. Dec 31 Shr loss one ct Net loss 176,639 Revs 150,300 NOTE: Company went public in April 1986.  
FIRST AMERICAN BANK AND TRUST <FIAMA> YEAR NET. Shr 91 cts vs 1.25 dlrs Net 8,710,000 vs 11.7 mln Avg shrs 9,526,287 vs 9,362,379 NOTE: Share adjusted for 10 pct stock dividend in May 1986. Net includes loan loss provisions of 12.7 mln dlrs vs 2,400,000 dlrs.  
<WARRANTECH CORP> 3RD QTR DEC 31 NET. Shr profit nil vs loss nil Net profit 28,565 vs loss 204,553 Revs 507,529 vs 6,563 Nine mths Shr loss nil vs loss nil Net loss 404,011 vs loss 649,495 Revs 938,345 vs 32,535  
VAN DORN CO <VDC> SETS QUARTERLY. Qtly div 27-1/2 cts vs 27-1/2 cts prior Pay May One Record April 17  
M.D.C. HOLDINGS INC <MDC> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay March 31 Record March 16  
CHUBB CORP <CB> SETS QUARTERLY. Qtly div 42 cts vs 42 cts prior Pay April Seven Record March 20  
FIRST FEDERAL BROOKSVILLE <FFBV> SETS QUARTERLY. Qtly div four cts vs four cts prior Pay March 31 Record March 20 NOTE: First Federal Savings and Loan Association of Brooksville.  
ALUMINUM CO OF AMERICA <AA> REGULAR DIVIDEND. Qtly div 30 cts vs 30 cts in prior qtr Payable May 25 Record May one  
INTERNATIONAL MULTIFOODS CORP <IMC> DIVIDEND. Qtly div 29-1/2 cts vs 29-1/2 cts prior Pay April 15 Record March 27  
HADSON CORP <HADS> 4TH QTR NET. Shr profit four cts vs loss 99 cts Net profit 545,000 vs loss 13.1 mln Revs 75.3 mln vs 37.9 mln Avg shrs 14.8 mln vs 13.1 mln Year Shr profit 34 cts vs profit 34 cts Net profit 4,908,000 vs profit 4,487,000 Revs 216.8 mln vs 117.7 mln Avg shrs 14.6 mln vs 13.1 mln NOTE: 1985 net included gain on sale of foreign properties of 15.5 mln dlrs or 1.19 dlrs per share and a writedown of oil and gas properties of 12.5 mln dlrs or 96 cts per share. 1985 4th qtr net included writedowns of oil and gas properties.  
ATT <T> PHONE PROPOSAL TO HELP PROFITS. American Telephone and Telegraph Co's proposal to deregulate its long distance phone service is unlikely to produce a radical change in phone rates, but it should help the company's profits, analysts said. "Deregulation will mean more pricing discounts for large volume users, but status quo for residential users," said PaineWebber Group analyst Jack Grubman. But the proposals will scrap the pricing formula that has constrained the company's profits in the long distance business, leading to higher profit margins, analysts said. ATT has long pushed for deregulation of its long-distance business, the profits of which have been limited by a regulated rate-of-return on the company's investments. The rate was cut last year to 12.20 from 12.75 pct. Earlier today the company proposed to the Federal Communications Commission to scrap the formula, cut the amount of time needed to approve rate proposals, and leave it up to its competitors to oppose it filings. MCI Communications Corp <MCIC> made a similar filing yesterday, saying greater the moves would increase competition in the telephone business. Analysts said the proposals will allow ATT to cut costs in the long-distance unit, and increase its profit margins previously constrained by the rate of return. But many said they did not expect the proposals to lead to higher prices in the industry, simply because of the competition the phone industry giant faces. "You probably wouldn't see as much of a price decline," said Gartner Group analyst Fritz Ringling. "But you wouldn't see a rise." Grubman said the proposals will allow ATT to selectively raise or lower prices, depending on the market. "It will give ATT a lot more flexibility," he said. ATT now faces a period of comment in which a number of companies will be able to respond to the proposals in FCC hearings. It may face at least one strong opponent, U.S. Sprint, the long distance joint venture between GTE Corp <GTE> and United Telecommunications Inc <UT>. "We think the Congress of the FCC should establish a reasonable rate of return. Someone should establish it," a U.S. Sprint spokesman said. But he added the company was not opposed to greater competition. It may also take some time for the proposals to go through, and in the process they may be altered by the various constituencies affected by the move. "There's so much complexity, so much inertia, so much bureacracy, that stricly speaking about the mechanisms, it won't happen that fast," said analyst Victor Krueger of the Gartner Group.  
STRUTHERS WELLS <SUW> SEES 1986 NOV 30 LOSS. Struthers Wells Corp said it expects to report a loss, without tax benefit, of about 16 mln dlrs for the fiscal year ended November 30, 1986, versus a profit of 295,000 dlrs in fiscal 1985. The company added, however, that about 13.6 mln dlrs of the loss relates to discontinued operations and disposal of subsidiaries. The company said the loss is part of its previously announced restructuring that includes the sale of its foreign and domestic units. Struthers added that it has filed with the Securities and Exchange Commission for an extension to file its annual report on form 10-K as a result of delays caused by the restructuring.  
SILVER STATE MINING <SSMC> CORRECTS NET. Silver State Mining Corp said it has corrected its 1986 fourth quarter net income to 485,380 dlrs from 528,790 dlrs reported earlier today. The company earned 286,969 dlrs in last year's fourth quarter.  
STEWART-WARNER CORP 4TH QTR SHR LOSS 3.86 DLRS VS PROFIT 37 CTS.  STEWART-WARNER CORP 4TH QTR SHR LOSS 3.86 DLRS VS PROFIT 37 CTS  
PAYLESS CASHWAYS <PCI> SEES BETTER FIRST QTR. Payless Cashways Inc chairman David Stanley told analysts the company's first quarter results to be reported March 17 will be better than the seven cts per share reported in the year ago quarter. "It was not a wonderful sales quarter, but it only represents 14 pct of the year's total results," Stanley said. Stanley also said that 1987 full year sales will be in excess of 1.8 billion dlrs as compared to the 1.5 billion dlrs reported in 1986. He also said that analysts' estimates of 1.55 dlr per shr for 1987 "are not crazy." Payless reported net income of 1.22 dlr per share in 1986. "The economy may not get a lot better, but we expect our advantages in the lumber industry and cost cutting measures to keep us competitive," Larry Kunz, chief financial officer, said. The company acquired Knox Lumber Co for about 24.3 mln dlrs in October 1986. Stanley said the company's stronger-than-optimal balance sheet will enable it to make further acquisitions but no negotiations are going on at the current time. He said some benefits of a new management information system will be felt in 1987 and more substantially in 1988.  REUTER...^M  
STEWART-WARNER CORP <STX> 4TH QTR LOSS. Shr loss 3.86 dlrs vs profit 37 cts Net loss 24,973,000 vs profit 2,389,000 Sales 62.5 mln vs 65.3 mln Year Shr loss 3.22 dlrs vs profit 1.32 dlrs Net loss 20,861,000 vs profit 8,515,000 Sales 268.0 mln vs 272.7 mln NOTE: 1986 earnings include a provision for restructuring costs of 23,675,000 dlrs, or 3.66 dlrs a share (pre-tax) and the effect of adoption of FASB 87 which reduced pension expense by 617,000 dlrs for the quarter and 1,817,000 dlrs for the year before taxes Earnings include nonoperating income from the effect of nonrecurring gains of 1,811,000 dlrs in the 1st Qtr of 1986 from the sale of its minority interest in Plexus Corp and 1,480,000 dlrs in the 3rd Qtr of 1985 related to the sale of excess property  
MONITERM CORP <MTRM> 4TH QTR LOSS. Shr loss 15 cts vs loss 11 cts Net loss 632,000 vs loss 437,000 Revs 3,206,000 vs 2,650,000 Year Shr loss 19 cts vs loss 24 cts Net loss 793,000 vs loss 1,004,000 Revs 11.5 mln vs 14.4 mln NOTE: Prior year figures restated to reflect merger in March 1986 with Amtron Corp.  
THE CHUBB CORP <CB> SETS QTRLY PAYOUT. Qtrly 42 cts vs 42 cts prior Pay April 7 Record March 20  
PATRICK PETROLEUM CO <PPC> YEAR LOSS. Shr loss 1.22 dlrs vs profit 27 cts Net loss 8,812,432 vs profit 1,847,560 Revs 7,981,198 vs 10.3 mln Avg shrs 7,187,941 vs 6,828,368 NOTE: Current year includes tax credit of 800,000 dlrs.  
EPITOPE INC <EPTO> 1ST QTR DEC 31 LOSS. Shr loss 24 cts vs loss nine cts Net loss 216,697 vs loss 47,344 Sales 144,403 vs 118,391  
<CLARY CORP> 4TH QTR DEC 31 LOSS. Shr loss 12 cts vs loss 16 cts Net loss 214,000 vs 309,000 Revs 3,056,000 vs 2,545,000 Year Shr loss 43 cts vs loss nine cts Net loss 754,000 vs loss 159,000 Revs 11.4 mln vs 11.4 mln  
LLOYDS BANK CANADA 1ST QTR PROFIT RISES SHARPLY. Lloyds Bank Canada, a unit of <Lloyds Bank International PLC>, said net profit soared to 3,053,000 dlrs for the first quarter ended January 31 from 9,000 dlrs a year earlier. Loan loss provisions, a mandatory five-year averaging of actual loan losses, also rose in the first quarter to 6,375,000 dlrs from year-ago 113,000 dlrs, the bank said. Lloyds Bank Canada became Canada's largest foreign bank last autumn with its 200 mln Canadian dlr acquisition of Continental Bank of Canada.  
PATRICK PETROLEUM CO <PPC> 4TH QTR NET. Shr nil vs one ct Net 59,608 vs 95,909 Revs 2,921,629 vs 2,918,682 Avg shrs 7,062,172 vs 7,273,020 Year Shr loss 1.22 dlrs vs profit 27 cts Net loss 8,812,432 vs profit 1,847,560 Revs 3,070,327 vs 3,195,710 Avg shrs 7,187,941 vs 6,828,368  
INLAND VACUUM INDUSTRIES INC <IVAC> 1ST QTR NET. Qtr ends Jan 31 Shr six cts vs eight cts Net 103,436 dlrs vs 134,360 dlrs Revs 1,762,270 vs 1,282,463  
DEL LABORATORIES INC <DLI> 4TH QTR NET. Shr 16 cts vs 55 cts Net 232,000 vs 814,000 Revs 22.4 mln vs 22 mln Year Shr 2.07 dlrs vs 2.43 dlrs Net 3,108,000 vs 3,670,000 Revs 106.7 mln vs 101.1 mln NOTE: Per share figures adjusted to reflect four-for-three stock split paid March 26, 1986.  
HOLLY SUGAR CORP <HLY> SETS REGULAR DIVIDEND. Qtly div 25 cts vs 25 cts prior Pay March 31 Record March 18  
CORADIAN CORP <CDIN> YEAR NET. Shr profit one cent vs loss 37 cts Net profit 148,000 dlrs vs loss 1,686,000 Revs 11.4 mln vs 10.9 mln NOTE: Company said net is before extraordinary items and taxes and declined to provide data on those items  
FOXBORO CO <FOX> 4TH QTR LOSS. Oper shr loss one ct vs loss 2.65 dlrs Oper net loss 100,000 vs loss 32.7 mln Revs 142.3 mln vs 168.8 mln 12 mths Oper shr profit 57 cts vs loss 2.76 dlrs Oper net profit 7,072,000 vs loss 34.2 mln Revs 544.0 mln vs 572.2 mln Note: 1986 oper net excludes tax credits of 2,149,000 dlrs for qtr and 2,200,000 dlrs for 12 mths. Includes restructuring charges of 120 mln dlrs for qtr, 527 mln dlrs for 12 mths.  
ALFIN INC <AFN> 2ND QTR JAN 31 LOSS. Shr loss 20 cts vs profit 14 cts Net loss 1,417,000 vs profit 933,000 Revs 5,623,000 vs 5,403,000 Avg shrs 6,957,300 vs 7,115,248 Six mths Shr loss 18 cts vs profit 43 cts Net loss 1,269,000 vs profit 3,079,000 Revs 15.7 mln vs 14.2 mln Avg shrs 7,195,720 vs 7,115,248  
HYPONEX CORP <HYPX> YEAR NET. Shr 85 cts vs 1.20 dlrs Net 5,130,000 vs 7,236,000 Revs 93.6 mln vs 91.9 mln  
HMO AMERICA INC <HMOA> YEAR LOSS. Shr loss 33 cts vs profit 38 cts Net loss 2,359,978 vs profit 2,805,389 Revs 76.2 mln vs 61.8 mln Avg shrs 7,096,886 vs 7,392,586  
SCHWAB SAFE CO <SS> UPS PAYOUT. Qtly div 13 cts vs 12 cts prior Pay April 17 Record March 31  
PHYSICIANS INSURANCE CO <PICO> 4TH QTR NET. Shr 31 cts vs 53 cts Net 960,143 dlrs vs 1,631,011 dlrs Revs 27.4 mln dlrs vs 18.9 mln dlrs Avg shrs 3,079,533 vs 3,096,095 12 mths Shr 1.01 dlrs vs 92 cts Net 3,113,337 dlrs vs 2,855,755 dlrs Revs 106.5 mln dlrs vs 78.3 mln dlrs Avg shrs 3,079,516 vs 3,089,140 NOTE: per share amounts for qtr and year prior have been restated to reflect a six-for-five stock split in August 1986. Revs for qtr include capital gains of 3,049,564 vs 2,010,972, and for year of 9,841,204 vs 5,798,995. Revs for qtr include non-insurance revenues of 1,627,518 vs 1,550,329, and for year of 7,289,973 vs 4,639,162. Revs for qtr include life subsidiary account deposits of 548,538 vs 241,465, and for year of 2,104,840 vs 300,404.  
BRADLEY <BRLY> ANNOUNCES LONG-TERM LEASE. Bradley Real Estate Trust said it signed a 99-year lease for property in downtown Minneapolis to BCED Minnesota Inc. The lease will increase net income by about 24 cts a share on a post-February 1987 three-for-two stock split basis. For 1986, the Trust reported net income of 1.3 mln dlrs or 38 cts a share on a post-split basis. Bradley will also be entitled to a one-time additional rental payment of 30 cts a share upon BCED entering into a space lease with a prime national tenant and a share in a portion of net cash flow from operations on the property.  
USLICO CORP <USVC> INCREASES DIVIDEND. Qtly div 22 cts vs 20 cts prior payable March 27 Record March 18  
DIPLOMAT ELECTRONICS <DPEC> TO CUT COSTS. Diplomat Electronics Corp said it will reduce expenses by four mln dlrs a year in an effort to stem losses and return to a positive net worth. The company also said certain lenders agreed to take a 24 pct stake in the company by converting seven mln dlrs of debt into preferred stock. Diplomat said it will cut costs by several means, including dismissal of 100 workers at its corporate headquarters, consolidation of its warehousing and shipping operations and reduction of management salaries. Moreover, it said it will relocate its headquarters to Glendale, Calif.  
DOLLAR GENERAL CORP <DOLR> QTLY DIVIDEND. Qtly div five cts vs five cts prior Payable April three Reocrd March 20  
HEALTHCARE SERVICES <HSAI> SEES WRITE-OFFS. Healthcare Services Of America Inc said it will write off about 16 mln dlrs in non-recurring expenses in 1986. It also said it expects income from operations to be about breakeven for 1986 and the estimated loss for the year to be about the same as the writeoffs. Results will be released by March 31, 1987. Included in the writeoffs were six mln dlrs in developmental costs, six mln dlrs in unamortized loan costs and debt discounts and four mln dlrs in other non-recurring costs. The company said it continues to be in default of certain financial and non-financial covenants set forth in its major loan documents. It said negotiations continue with the banks, but has no assurance that such funding will continue. It said it authorized Smith barney, Harris Upham and Co to seek a business combination with third parties. Healthcare also said the board has authorized the sale or lease of certain assets to reduce the cash required from the revolving credit line for completion of current construction projects. For the year ended December 31, 1985 Healthcare reported net income of 3.5 mln dlrs on sales of 54.4 mln dlrs  
PARK-OHIO INDUSTRIES INC <PKOH> 4TH QTR NET. Shr loss 52 cts vs profit 1.07 dlr Net loss 2,917,000 vs profit 5,963,000 Revs 34.1 mln vs 40.3 mln Year Shr loss 1.39 dlr vs profit 1.24 dlr Net loss 7,749,000 vs profit 6,946,000 Revs 138.6 mln vs 186.2 mln NOTE: 1986 net includes certain non-recurring charges of about 5,506,000 dlrs for a number of items. 1985 4th qtr and yr net includes extraordinary credit of 4,974,000 dlrs or 89 cts per share.  
BMC INDUSTRIES INC <BMC> 4TH QTR LOSS. Shr loss 1.20 dlrs vs loss 1.97 dlrs Net loss 6,248,000 vs loss 10.2 mln Revs 33.1 mln vs not given Year Shr loss 1.25 dlrs vs loss 13.44 dlrs Net loss 6,508,000 vs loss 69.6 mln Revs 123.4 mln vs not given NOTE: Results include charges of five mln dlrs or 96 cts shr for 1986 qtr and year, compared with charge of 72.2 mln dlrs or 13.94 dlrs shr in prior year from discontinued operations and disposal of discontinued operations.  
UNITED COMPANIES <UNCF> DECLARES STOCK DIVIDEND. United Companies Financial Corp said its board declared a two pct stock dividend payable APril eight to holders of record March 17. The board also declared a regular quarterly cash dividend of 12.5 cts payable April one to holders of record March 16.  
SIERRA PACIFIC RESOURCES INC <SRP> DIVIDEND. Qtly div 43 cts vs 43 cts prior Payable May one Record April 15  
METEX CORP <MTX> 4TH QTR DEC 28. Shr 22 cts vs 49 cts Net 296,994 vs 657,416 Revs 6.5 mln vs 9.5 mln Year Shr 78 cts vs 1.51 dlrs Net 1.0 mln vs 2.0 mln Revs 27.6 mln vs 29.4 mln  
HOUSTON OIL TRUST <HO> OMITS MARCH DISTRIBUTION. Houston Oil Trust said there will be no cash distribution to the unit holders in March. The most significant factor for the lack of a distribution this month is the establishment of additional special cost escrow accounts, the company said, adding, that there may be no cash distribution in other months or during the remainder of the year. For March, the working interest owner will place 1.9 mln dlrs in special cost escrow accounts.  
BRANIFF INC <BAIR> 4TH QTR LOSS JAN 31. Shr loss 37 cts vs loss 13 cts Net loss 4.5 mln vs loss 1.5 mln Revs 63.3 mln vs 53.8 mln Year Shr loss 74 cts vs profit 1.87 dlr Net loss 9.0 mln vs profit 23.0 mln Revs 239.5 mln vs 244.3 mln NOTE:1986 net includes extraordinary gain of 10.6 mln dlrs from tax loss carryforward in year and loss of 198,000 dlrs in 4th qtr.  
<SIME DARBY BHD> SIX MONTHS TO DECEMBER 31. Shr 3.9 cents vs 4.2 cents Interim dividend three cents vs same Group net 35.8 mln ringgit vs 39.1 mln Pre-tax 77.3 mln vs 99.8 mln Turnover 1.16 billion vs 1.05 billion Note - dividend pay May 22, register April 24.  
<CONSOLIDATED PLANTATIONS BHD>. Six months to December 31 SHR 2.6 cents vs 5.2 cents Interim dividend four cents vs same Group net 12.4 mln ringgit vs 24.3 mln Pre-tax 26.6 mln vs 53.5 mln Turnover 235.3 mln vs 333.9 mln Note - dividend pay April 30, register April 3.  
<TRACTORS MALAYSIA HOLDINGS BHD>. Six months to December 31 SHR 8.8 cts vs 0.5 ct Interim dividend 12.5 cts vs nil Group net 9.5 mln ringgit vs 0.6 mln Pre-tax 11 mln vs 1.1 mln Turnover 88.9 mln vs 70.8 mln Note - dividend pay May 15, register April 17.  
<DUNLOP MALAYSIAN INDUSTRIES BHD>. Six months to December 31 SHR 1.4 cts vs 1.6 cts Interim dividend one cent vs same Group net 4.1 mln ringgit vs 4.7 mln Pre-tax 6.7 mln vs nine mln Turnover 100.8 mln vs 112.1 mln Note - dividend pay April 28, register April 3.  
U.S. FACILITIES <USRE> SEMI-ANNUAL DIVIDEND. Semi-annual dividend 4 cts Pay May 29 Record April 14 Note: full name is U.S. Facilities Corp. This is first dividend declared since company completed its initial public offering on November 7.  
IOMEGA <IOMG> SETS MANAGEMENT, LABOR LAYOFFS. Iomega Corp said it has laid off over a quarter of its professional and management staff and nearly half of its direct labor force as part of a restructuring and downsizing of its business. The company also said it will receive a qualified opinion from the auditors of it 1986 financial statement subject to the outcome of two suits. The company is a defendant in a consolidated class action law suit which seeks damages in an unspecified amount and is also a defendant in a related shareholder action. Iomega said the auditors state in their opinion letter that both actions are in the early stages of discovery and the likely outcome can not be determined at this time. The company said a corporate wide reduction of its professional, management and indirect labor will result in the permanent elimination of 183 positions in all functional areas of the company's business. This represents over 25 pct of professional, management and indirect employees, it added. In addition, Iomega announced layoff of about 182 employees, principally from its manufacturing direct labor force. Those affected represent about 46 pct of direct labor. Commenting on the layoffs, Iomega said those from among the direct labor force affects personnel building the Alpha Eight Inch Disk Drive and Bernoulli Boxes. "This action is required as we bring our finished goods inventory and inventory in our distribution channels down to acceptable levels," it explained. The company stated this layoff does not affect the production of its new 5-1/4 inch Beta 20 product which is currently being built to a backlog of orders.  
SOUTHERN CO TO TAKE 226 MLN DLR CHARGE ON PROJECTED VOGTLE COST RISE.  SOUTHERN CO TO TAKE 226 MLN DLR CHARGE ON PROJECTED VOGTLE COST RISE  
SOUTHERN <SO> TO TAKE CHARGE ON VOGTLE COST. Southern Co said it will take an after-tax charge of 226 mln dlrs against earnings no later than January 1988 because the projected cost of the Vogtle nuclear power plant has risen abover the amount which retail customers in Georgia will be asked to pay. The company's largest subsidiary, Georgia Power Co, said the budget for the plant has increased by 6.3 pct, or 522 mln dlrs, to 8.87 billion. However, because of a pledge the made last year to Georgia's Public Service Commission, the increased cost will not be included in the utility's retail electric rates. Geogia Power also said its board has delayed the scheduled completion of Vogtle's Unit Two to June 1989 from September 1988. Unit Two is about 60 pct complete, it added. The utility said fuel loading has been completed at Unit One and the unit is being put through a series of low-power tests before the Nuclear Regulatory Commission is asked for a full-power license. The nuclear power plant, located near Waynesboro, Ga., is co-owned by <Oglethorpe Power Corp>, the Municipal Electric Authority of Georgia and the city of Dalton. Georgia Power said the revised Vogtle budget estimate was due to several factors, including additional labor costs incurred to keep the plant's first unit on schedule for commercial operation by June. The new figure represents the first change in the plant's budget since August 1985, when it was estimated at 8.35 billion dlrs. In March 1986, the utility told Georgia regulators it would "cap" the price of Vogtle its customers would be asked to pay at 3.56 billion dlrs, the company's share of the then projected 8.35 billion dlr total. Under the new budget, Georgia Power said, its share amounts to 3.87 billion dlrs. Noting that Georgia Power's share of the Vogtle increase is 313 mln dlrs, Southern said this will result in a charge against earnings of 177 mln dlrs after taxes. In addition, the company said, Georgia Power's contracts with the joint owners require the utility to buy back significant amounts of Vogtle capacity during the plant's initial years of operation. Under terms of the cap on costs, it will not attempt to recover the portion of the budget increase that applies to the buybacks. This bings the total amount that must be charged against earnings to 2326 mln dlrs after taxes, Southern said. Southern said new rules of the Financial Accounting Standards Board, which are effective in January 1988, require any costs that are determined nonrecoverable to be charged against earnings once that determination is made. The company also said its board has approved a capital budget of 2.1 billion dlrs in 1987, including work on the Vogtle project. It said a 5.9 billion dlr capita budget for the three-year period 1987-1989 was also outlined at the board meeting, noting this is 700 mln dlrs below the comparable figure for the years 1986-1988.  
CONTINENTAL BANK/CANADA SETS DISTRIBUTION. Continental Bank of Canada, a subsidiary of Lloyds Bank PLC <LLOY.L>, said it intends to redeem all existing preferred shares and distribute a stock dividend to common shareholders. The initial distribution will be in cumulative redeemable retractable floating rate class A preferred shares series II, which will carry a retraction right enabling holders to receive 12.75 dlrs for each share. Continental said the 58.6 mln dlrs of existing outstanding preferred shares will be paid off at par plus accrued dividends. Continental said the notes will carry a dividend rate of 72 pct of prime and it expects that the shares will trade at 12.75 dlrs or more, enabling shareholders who wish to receive cash to do so. The bank said it expects the distribution will be made in early May, subject to various approvals. Continental also said that, as of March 2, it had cash of more than 250 mln dlrs and equity of about 284.6 mln dlrs, allowing for a final total distribution of 16.60 dlrs per common share. Continental Bank said it continues to expect that the final distribution to shareholders will be in the range of 16.50 dlrs to 17.25 dlrs per share and will take place in late 1988 or early 1989. Until the initial stock distribution takes place, regular dividend payments will be maintained on the existing preferred shares, the bank said. The distribution is part of the terms of Continental Bank of Canada's sale of its banking assets to Lloyds Bank Canada, a subsidiary of Lloyds Bank PLC. Continental Bank said Lloyds Bank Canada paid the balance of the purchase price but that it was lower than originally anticipated since Continental was unable to transfer certain income tax deductions to Lloyds Bank. Continental did not give further details. More  
GULF RESOURCES <GRE> TO HAVE GAIN ON STOCK SALE. Gulf Resources and Chemical Corp said it has sold 9,534,633 shares of <Imperial Continental Gas Association> for 720 pence a share, or 68.6 mln stg, in a private transaction for a pretax gain of about 19.6 mln dlrs. Gulf Resources said it still owns 6.7 mln shares of Imperial Continental, or a 4.6 pct interest, and continues to study various alternatives.  
A.H. ROBINS'S <QRAH> JANUARY EARNINGS UP. A. H. Robins Co, the drug company in bankruptcy proceedings due to litigation over its Dalkon Shield contraceptive device, reported consolidated net earnings for the month ended January 31 of 17.3 mln dlrs. In the corresponding year-ago period it reported net earnings of 13.8 mln dlrs. Robins said the filings were made with the U.S. trustee overseeing its chapter 11 bankruptcy case.  
CHARAN SEES AT LEAST 50 PCT RISE IN 1987 PROFIT. (Charan Industries Inc), a distributor of toys and other consumer products, expects 1987 net profit to rise at least 50 pct over last year's 6.1 mln dlrs, president Earl Takefman told reporters before the annual meeting. "We grew basically 100 pct last year, I'm not sure we're going to be able to grow 100 pct again this year but we certainly will grow at least 50 pct over last year," Takefman said. Charan reported profit of 3.0 mln dlrs in 1985. Takefman said he expects sales to rise to about 100 mln dlrs this year from 57.3 mln dlrs in 1986. Fiscal 1985 ended September 30, while fiscal 1986 ended November 30. Takefman said the company is actively looking for acquisitions in the consumer products industry, likely in Canada. The company said it expects to resolve delivery problems this year which last year hindered the growth of its toy distribution business, which accounts for about one-third of revenues. Charan is the exclusive distributor in Canada for <Worlds of Wonder> toys, which include the Teddy Ruxpin voice-activated talking plush bear. Takefman said new products this year, which will be on the shelves for Christmas, include a smaller version of Teddy Ruxpin, a talking Mickey Mouse toy, dancing plush toys, a doll with a voice activated by sound, touch, light and heat, and talking books. The company is also marketing an extended line of "laser tag" kits, which shoot rays of light and tell you when you've hit someone. Other products include a recorder device which allows students to leave taped messages in each others' school lockers, retailing for about 60 dlrs.  
MAYFAIR SUPER MARKETS <MYFRA> SALES INCREASED. Mayfair Super Markets said its sales for the second qtr ended Feb 28 were 122.0 mln dlrs, an increase of more than 15 pct compared to sales of 105.9 mln dlrs in the comparable quarter last year. The company said sales for the first six months of the year were 242.0 mln dlrs, more than 15 pct above the 210.1 mln dlrs reported in the same period last year. This was the 12th consecutive quarterly gain, the company said.  The company said it expects to release earnings in April.  
BALLY <BLY> TO TAKE 17.3 MLN DLR 1ST QTR CHARGE. Bally Manufacturing Corp said it expects a charge to earnings in the first quarter of this year of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of its common shares from real estate developer Donald Trump. In a filing with the Securities and Exchange Commission, the Chicago-based hotel, casino, gambling and amusement concern also said the anticipated charge against first quarter earnings will not be deductible for federal income tax purposes. Under a February 21 deal, Bally agreed to buy 2.6 mln of the 3.06 mln shares held by Trump at 24 dlrs a share, or 62.4 mln dlrs, while Trump agreed not to try to seek control of Bally. The agreement also calls for Bally to pay Trump another 6.2 mln dlrs for certain agreements, claims and expenses related to his purchase of the Bally common stock, Bally said. Trump agreed not to buy any more Bally stock or to try to seek control of the company for 10 years, it said. Bear, Stearns and Co Inc signed a similar standstill agreement with Bally for three years, Bally said. But it can still deal in Bally stock as a broker, it said. The deal also obligates Bally to buy Trump's remaining stake in the company for 33 dlrs a share if the stock price does not reach that level by February 21, 1988, it said.  
SERVICEMASTER <SVM> SETS QUARTER DISTRIBUTION. ServiceMaster L.P. approved a second quarter cash distribution of 58 cts, payable April 10, record March 23. Previously, ServiceMaster said it would pay in 1987 an indicated cash distribution of 1.50 dlrs a share, including  95 cts a share which would be paid before April 15, 1987. In other action, the company set May eight as the date of its annual shareholders' meeting.  
ADVO-SYSTEM INC <ADVO> SEES BREAK-EVEN 2ND QTR. ADVO-System Inc said it could report a break even second quarter ending March 28, 1987 compared with a loss of 1.8 mln dlrs, or 16 cts a share, in fiscal 1986's second quarter ended March 29, 1986. ADVO said it previously announced it would report a net loss for the quarter.  
CANADIAN PACIFIC LTD 4TH QTR OPER NET 30 CTS VS 20 CTS.  CANADIAN PACIFIC LTD 4TH QTR OPER NET 30 CTS VS 20 CTS  
MEDICAL PROPERTIES <MPP> SETS MONTHLY DIVIDEND. The board of Medical Properties Inc said it has declared an initial monthly cash dividend of 11-1/2 cts a share and has adopted a monthly dividend policy. The initial dividend will be payable April 10 to shareholders of record March 31.  
IMMUCOR <BLUD> SPLITS STOCK. Immucor Inc said its board of directors has declared a five-for-four stock split in the form of a 25 pct stock dividend payable April 15 to shareholders of record March 27.  
CANADIAN PACIFIC (CP) CONFIRMS EARNINGS. Canadian Pacific Ltd said fourth quarter 1986 operating profit rose to 91.6 mln dlrs, or 30 cts a share, from 50.7 mln dlrs, or 20 cts a share, a year ago. The statement confirmed released preliminary earnings figures the company released in February. A 102.6 mln dlr gain on the sale of CP's Cominco Ltd interest helped raise final 1986 fourth quarter profit to 193.8 mln dlrs or 65 cts a share. The company said a drop in 1986 full-year operating profit to 150.1 mln dlrs from a restated 252.7 mln dlrs in 1985 was due mainly to lower world oil prices. The company said its CP Rail division reported 1986 net income of 119.4 mln dlrs, compared with 133.4 mln dlrs in 1985. It said grain traffic recovered from drought-affected levels of a year ago but was offset by weakness in other traffic areas and increased expenses. It said the net loss from its Soo Line increased to 33.5 mln dlrs loss from 8.7 mln dlrs loss in 1985, mainly due to restructuring charges. Canadian Pacific said favorable developments during the year included reduced bulk shipping losses as a result of a recovery in tanker markets and a turnaround in the forest products sector.  
FORD <F> SHARES RISE ON HIGHER EARNING ESTIMATE. Ford Motor Co's stock rose 1-1/4 to 82-1/4 after analyst Maryann Keller of Furman Selz Mager Dietz and Birney raised earnings estimates on the company, traders said. Keller said that she expects the company's 1987 earnings to rise to between 13.50-to-14 dlrs a share as compared to 12.32 dlrs a share earned last year. She said Ford's already good market share is expected to remain favorable and earnings from overseas are expected to improve. In addition, Keller said, the company is selling more of its expensive model cars, which are more profitable. The non-automotive operations, including Ford Motor Credit, are also expected to post improved earnings this year. Keller said she expects the company to split its stock and raise its dividend to at least three dlrs a share this year. She noted that Chrysler Corp's <C> announcement of a merger proposal for American Motors Corp <AMO> should have no short term effect on Ford but could cut into Ford's share of the truck market in the long term.  
DUTCH RETAILER AHOLD SEES UNCHANGED 1987 PROFIT. Dutch food retailer Ahold NV <AHLN.AS> expects unchanged profits in 1987 but said it will take advantage of the lower dollar to expand further in the U.S. Turnover will grow but net profits are expected to remain around the 1986 level of 132.4 mln guilders due to higher Dutch taxes and a three-year expansion plan, Ahold Chairman Albert Heijn told a news conference. The profit forecast allows for a dollar rate around current levels of just over three guilders. Turnover and net profit in 1986 were hit by the dollar, which fell to an average 2.46 guilders from 3.35 in 1985.  
PITT-DES MOINES <PDM> GETS QUALIFIED AUDIT. Pitt-Des Moines Inc said it will receive a qualified opinion from auditors on its 1986 and 1985 financial statements. It said the qualification related to its inability to determine the effects, if any, of the final resolution of a suit filed against it by <Washington Public Power Supply System>.  The 1985 suit was dismissed in a 1986 lower court action, but the ultimate outcome of the matter is still uncertain since Washington Public Power has appealed to the U.S. Court of Appeals.  
UNITED BRANDS INC 4TH QTR SHR PROFIT SIX CTS VS LOSS 11 CTS.  UNITED BRANDS INC 4TH QTR SHR PROFIT SIX CTS VS LOSS 11 CTS  
NATIONAL FUEL GAS <NFG> SETS SPLIT, HIGHER PAYOUT. National Fuel Gas Co said its board has approved a two-for-one stock split and will consider an increased cash dividend at its June meeting. The company also said management will recommend, at the June board meeting, an increase of 12 cts per share in the current annual dividend rate of 2.28 dlrs a share, raising it to 2.40 dlrs per share, or 1.20 dlrs a share after the split. National Fuel Gas said the split will be paid to holders of record May 29.  A spokeswoman said the distribution date for the split has not been determined. The company said the split is subject to approval of the Securities and Exchange Commission under the Public Utility Holding Act. The company now has 11,928,871 shares outstanding.  
GENERAL CINEMA CORP 1ST QTR OPER SHR 43 CTS VS 47 CTS.  GENERAL CINEMA CORP 1ST QTR OPER SHR 43 CTS VS 47 CTS  
GENERAL CINEMA <GCN> POOR SEASON LOWERS NET. General Cinema Corp said lower attendence at its theatres against last year's record Christmas season lowered its first fiscal quarter operating earnings nine pct to 15.9 mln dlrs. "While we are not off to as good a start in fiscal 1987 as we would like, business has picked up in the last few weeks," chairman Richard Smith said. He said that the company expected net pricing to be higher and unit volume to improve in the remaining quarters of the fiscal year. The company added that operating earnings in its theatre unit will be higher in fiscal 1987 if the important summer season film releases perform well. In addition, its other key business, General Cinema Beverages, is expected to achieve record operating results for the full year, Smith said. The company's superstar video business which rents video cassettes in supermarkets continues to operate at an expected loss, the company added. General Cinema said the financing costs associated with its purchase of 3.5 mln Carter Hawley Hale Stores Inc <CHH> shares for 177.9 mln dlrs, and its 89.7 mln sterling investment in <Cadbury Schweppes PLC>, lowered first quarter net. But it said the loss was offset by a 2.5 mln dlr gain on the sale of common shares of Sea-Land Corp, a unit of CSX Corp <CSX>.  
AMERICUS TRUST <BYU> <BYP> INITIAL QTRLY DIV. Americus Trust For Bristol Myers shares announced an initial dividend of 68.75 cts payable May 12 for shareholders of record April 3.  
<ATCO LTD> SEES GAIN FROM SALE. Atco Ltd said its Atco Development unit agreed to sell the Canadian Utilities Center in Edmonton, Alberta and the Canadian Western Center in Calgary. The sales, together with the previously-announced sale of Atco's Australian operations, will gross 114 mln dlrs and result in an after-tax gain of 31 mln dlrs, which will be reflected in Atco's fiscal year results. Its fiscal year ends March 31, the company said. In addition, the sales will produce 47 mln dlrs cash after debt reduction of 67 mln dlrs, Atco said.  
CTS <CTS> INCREASES 1986 LOSS. CTS Corp said it increased its 1986 loss from continuing operations to 26.6 mln dlrs from the previously announced 23.8 mln dlrs loss. The 1986 figure was increased to include expenses involved with its settlement of a dispute with Dynamics Corp of America <DYA>. The settlement involved a takeover bid for CTS by Dynamics Corp, which had offered to buy the shares of CTS that it did not already own. CTS made a profit of 7.9 mln dlrs from continuing operations in 1985. CTS said it charged an additional 2.8 mln dlrs in special expenses to its 1986 operations as a result of the Dynamics Corp settlement. The additional expenses include the obligation to reimburse Dynamics Corp, subject to approval of CTS shareholders, a total of 2.1 mln dlrs for Dynamics Corp's expenses and other costs relating to CTS.  
HILLSDOWN HOLDINGS PLC <HLDN.L> 1986 YEAR. Shr 16.3p vs 12.2p Div 2.75p vs 2.25p making 3.8p vs 3.15p adjusted for Three-for-one capitalisation Pre-tax profit 54.9 mln stg vs 33.4 mln Turnover 1.70 billion vs 1.13 billion Tax 7.6 mln vs 2.6 mlnProfit attributable 51.9 mln vs 30.1 Mln Cost of Sales 1.49 billion vs 999.3 mln Gross profit 215.9 mln vs 136.2 mln Distribution costs 90.3 mln vs 57.2 mln Adminstrative expenses 65.9 mln vs 40.8 mln Other operating income 3.9 mln vs nil Interest payable 8.7 mln vs 4.8 mln Minority interests 1.0 mln vs 0.7 mln Extraordinary credit (sale of share in S and W Berisford Plc) 5.6 mln vs nil Operating profit includes - Poultry, eggs and animal feed 21.7 mln vs 17.2 mln Food processing and distribution 15.4 mln vs 6.9 mln Furniture and timber distribution 8.4 mln vs 3.4 mln Fresh meat and bacon 8.0 mln vs 4.5 mln  
HILLSDOWN SAYS EARLY 1987 RESULTS ENCOURAGING. Hillsdown Holdings Plc <HLDN.L> said early results for 1987 were encouraging, and the combination of its investment and acquisition strategies enabled it to look forward confidently for an excellent result for the year. The company was commenting on 1986 results which showed pre-tax profit rising to 54.9 mln stg from 33.4 mln previously on turnover that lifted to 1.70 billion from 1.13 billion. The figures initially boosted the share price to 286p from 281p last night, but they then eased back to 283p by 0830 GMT. Hillsdown said capital expenditure rose in 1986 to 60 mln stg from 31.5 mln and would continue at this high level in 1987. The placing of 82.5 mln shares last year raised 160.7 mln stg and enabled shareholders' funds to more than double to 352 mln at year-end. Net borrowings were 20 pct of shareholder's funds and the group had listed investments of 47.1 mln. The company said it had bought a total of 40 companies during the year for a total price of some 180 mln stg. Although these had made minor contribution to profits the real benefits would come in 1988 and beyond.  
NIPPON OIL SEES SHARPLY LOWER SALES AND PROFITS. Nippon Oil Co Ltd <NPOL.T> predicted parent company net profit of about nine billion yen in the year ending March 31, down 10.4 pct from a year earlier, president Yasuoki Takeuchi told a press conference. Current profit for the year was estimated at 17 to 18 billion yen, down 20 to 24 pct from a year earlier, he said. Takeuchi said sales are expected to fall 40 pct to 1,700 billion yen for the fifth consecutive year-on-year drop. This year's fall was due to lower selling prices for end-users, which more than offset the yen's appreciation. The company will retain six yen dividend for 1986/87.  
BEJAM GROUP PLC <BJAM.L> 27 WEEKS TO JANUARY 3. Shr 5.95p vs 4.41p Div 2.25p vs 2.0p Pre-tax profit 11.6 mln vs 9.1 mln Tax 4.2 mln vs 3.6 mln Turnover 256.3 mln vs 185.3 mln Note - company said it was unlikely second-half profits will show same rate of increase as first. But it had great confidence in prospects for future growth.  
CREDITANSTALT-BANKVEREIN <CABV.V> YEAR 1986. Cons banking gp net profit 496.7 mln schillings vs 354.5 mln Cons banking gp balance sheet total at year-end 453.4 Billion schillings vs 425.4 billion Parent bank net profit 370.6 mln vs 253.0 mln Parent bank balance sheet total 372.5 billion vs 348.2 Billion Parent bank dividend 12 pct vs 10 pct Parent bank div payout 363.0 mln schillings vs 247.5 mln  
Ultramar 1986 net loss 62.1 mln stg vs 71.6 mln profit.  Ultramar 1986 net loss 62.1 mln stg vs 71.6 mln profit  
ULTRAMAR PLC <UMAR.L> 1986 YEAR. Shr 8.1p loss vs 26.3p earnings Div 3.25p making 5.25p vs 10.5p Net loss 62.1 mln stg vs 71.6 mln profit Operating profit before tax 73.6 mln vs 273.8 mln Turnover 1.47 billion vs 1.74 billion Cost of sales 1.22 billion vs 1.39 billion Gross profit 241.8 mln vs 357.6 mln Distribution costs and administrative expenses 152.2 mln vs 123.1 mln Share of profits in associates 17.1 mln vs 68.2 mln Other operating income 15.8 mln vs 16.9 mln Financing charges 48.9 mln vs 45.8 mln Tax 63.9 mln vs 169.7 mln Exceptional items 4.9 mln debit vs 5.5 mln debit Net results of discontinued operations 15.6 mln debit vs 20.9 mln debit Loss on ordinary activities before minority interest 10.8 Mln vs 77.7 mln profit Minority interest 11.3 mln vs 6.1 mln Extraordinary debits 40.0 mln vs nil  
GKN 1986 pretax profit 132.4 mln stg vs 132.7 mln.  GKN 1986 pretax profit 132.4 mln stg vs 132.7 mln  
GKN PLC <GKNL.L> 1986 YEAR. Shr 28.5p vs 26.6p. Final div 8p, making 13p vs 12p. Pre-tax profit 132.4 mln stg vs 132.7 mln. Net profit befire minorities  81.0 mln vs 74.4 mln. Sales 2.06 billion stg vs 2.20 billion. Extraordinary debit 36.5 mln vs 20.4 mln. Trading surplus after depreciation 145.7 mln stg vs 158.1 Mln Investment and interest income 5.4 mln vs 3.8 mln Interest payable 42.5 mln vs 43.9 mln Profits from related companies, less losses, 23.8 mln vs 14.7 mln Tax 51.4 mln vs 58.3 mln Profit attributable to outside shareholders' interests 12.6 Mln vs 11.2 mln Note - Extraordinary debit included charge for restructuring auto parts distribution in France and loss of 10 mln stg on sale of steel stock business. Trading surplus comprised - Automotive components and products 101 mln stg vs 105 mln Industrial services and supplies 30 mln vs 21 mln Wholesale and industrial distribution 11 mln vs 22 mln Steels and forgings four mln vs 10 mln By region, Britain contributed 34 mln stg vs 47 mln Continental Europe 77 mln vs 56 mln U.S.A. 28 mln vs 51 mln Rest of world seven mln vs four mln  
ULTRAMAR SAYS FOURTH QUARTER SHOWED IMPROVEMENTS. Ultramar Plc <UMAR.L> said that while its fourth 1986 quarter had improved from the operational point of view, several special charges adversely affected results. Overall the year had not been a good one, with upstream operations dramatically hit by the fall in crude oil prices and downstream operations also affected in the first half by large losses on inventories. But margins improved in the second half and in particular refining and marketing in Eastern Canada showed a good recovery. The company was commenting on results that showed a net loss for the year of 62.1 mln stg after a 71.6 mln profit in 1985. The fourth quarter charges included a 20.8 mln stg provision on a retroactive price agreement recently initialled by Pertamina and Japanese buyers of the company's liquid natural gas and 4.7 mln for the early months of its ownership of Gulf Canada's marketing assets. Ultramar said it had also included the estimated cost of a further reorganisation programme, which was partly offset by a withdrawal of surplus funds from U.S. Pension schemes, and a 13.5 mln stg provision for the estimated cost of selling its U.S. Flag shipping operation. The immediate outlook for crude oil prices was uncertain although it was unlikely there would be any sizeable increase in the near term. However, Ultramar said it was optimistic prices would strengthen over the longer term. Its substantial reserves of crude oil and natural gas put it in a good position to benefit from any price recovery. In the meantime, Ultramar's objectives were to improve profitability by selling or restructuring weak operations while strengthening core businesses and developing a sound operational and financial base. Proven, probable and possible reserves at end-1986 totalled about 700 mln barrels net on an oil-equivalent basis. Ultramar shares firmed on the announcement to 187p from 181p at last night's close.  
PREUSSAG SAYS PAYMENT OF A 1986 DIVIDEND NOT CERTAIN. A spokesman for Preussag AG <PRSG.F> said it was not yet certain whether the company would pay a dividend on 1986 results He was commenting on a Preussag statement which said results in 1986 were lower than in 1985. Preussag has frequently said its results came under further pressure in 1986 following a difficult year in 1985. Managing board chairman Guenther Sassmannshausen said in December the board would prefer to stick to its policy of not dipping into reserves to pay dividends. The spokesman noted the final dividend decision rests with the supervisory board. The Preussag statement said results fell in 1986 compared with 1985 because declines in earnings in metals, oil and shipping were not entirely compensated by positive trends in the group's other divisions. The spokesman said it was not clear whether the domestic group would show a net profit in 1986, adding this would depend partly on the level of provisions. Preussag cut its 1985 dividend to eight marks from nine marks on 1984 results after parent company net profit dropped to 65.0 mln marks from 103.0 mln the year before. The Preussag world group made a net loss of 13.1 mln marks in 1985 after a net profit of 154.5 mln the year before. Domestic group net profit fell to 77.9 mln from 122.2 mln. The statement said its results in 1986 were affected by unsatisfactory selling prices for metals and oil as well as by poor use of capacity in the supply ship sector. The reduction in natural gas prices in the fourth quarter of 1986 to reflect earlier falls in oil prices was an additional factor behind the drop in results. Preussag said rationalization measures already introduced would not begin to take full effect until this year. Preussag's domestic group turnover rose to 4.48 billion marks in 1986 from 4.29 billion in 1985, helped by the first time consolidation of 951.8 mln marks of turnover from its majority-owned oil and gas subsidiary C. Deilmann AG. Domestic group turnover in the 1986 fourth quarter alone was 1.1 billion marks, it said without giving comparison figures. Preussag said its domestic crude oil production fell 4.0 pct to 94,400 tonnes in 1986, while foreign oil production rose to 182,900 tonnes from 174,500 tonnes. Preussag said its Amalgamated Metal Corporation Plc (AMC) subsidiary, whose results are included in the world group accounts, made an unspecified profit in the fourth quarter of last year. AMC's large losses in 1985, caused principally by the international tin crisis, were the reason behind the world group losses that year.  
BTR PLC <BTRX.L> 1986 YEAR. Shr 21.2p vs 16.0p Div 4.75p making 8.25p vs 5.83p Pretax profit 505 mln stg vs 362 mln Turnover 4.02 billion vs 3.88 billion Tax 128 mln vs 85 mln Operating profit 527 mln vs 421 mln Operating profit includes - Other income 30 mln vs 41 mln Financial costs 52 mln vs 100 mln Minorities 25 mln vs 16 mln Earnings 352 mln vs 261 mln Extraordinary credit 78 mln vs 34 mln debit.  
NEW WORLD PICTURES TO HAVE GAIN FROM SALE OF FIVE PCT OF TAFT BROADCASTING.  NEW WORLD PICTURES TO HAVE GAIN FROM SALE OF FIVE PCT OF TAFT BROADCASTING  
SERVICE RESOURCES CORP <SRC> 4TH QTR NET. Oper shr profit five cts vs loss 1.71 dlrs Oper net profit 196,000 vs loss 2,388,000 Sales 40.5 mln vs 43.2 mln Avg shrs 2,212,000 vs 1,482,000 Year Oper shr profit 71 cts vs loss 6.24 dlrs Oper net profit 1,799,000 vs loss 8,991,000 Sales 154.5 mln vs 145.0 mln NOTE: Net excludes losses from discontinued operations of 712,000 dlrs vs 2,843,000 dlrs in quarter and 1,972,000 dlrs vs 10.6 mln dlrs in year. 1986 net excludes extraordinary loss 1,167,000 dlrs in quarter and gain 628,000 dlrs in year. 1986 year net includes gain one mln dlrs from sale of building and gain 3,200,000 dlrs from termination of pension plan.  
TELEPHONE AND DATA SYSTEMS INC <TDS> 4TH QTR NET. Oper shr 22 cts vs 22 cts Oper net 2,058,000 vs 2,129,000 Revs 44.5 mln vs 35.7 mln Avg shrs 9,589,000 vs 9,348,000 Year Oper shr 94 cts vs 94 cts Oper net 8,889,000 vs 8,570,000 Revs 155.0 mln vs 123.4 mln Avg shrs 9,450,000 vs 9,174,000 NOTE: Net excludes discontinued operations gain 1,637,000 dlrs vs loss 720,000 dlrs in quarter and gain 4,679,000 dlrs vs loss 720,000 dlrs in year. 1986 net both periods includes charge 865,000 dlrs from repal of investment tax credits.  
SOUTHLIFE HOLDING CO <SLHC> 4TH QTR NET. Oper shr seven cts vs 20 cts Oper net 347,855 vs 787,117 Revs 6,748,868 vs 6,849,499 Avg shrs 5,391,666 vs 4,277,157 Year Oper shr 56 cts vs 46 cts Oper net 2,617,528 vs 2,003,661 Revs 27.1 mln vs 27.3 mln Avg shrs 4,763,793 vs 3,377,157 NOTE: Net excludes realized gains on investments of 925,576 dlrs vs 577,389 dlrs in quarter and 1,776,341 dlrs vs 797,932 dlrs in year.  
CREDITANSTALT SEES HIGHER 1987 DIVIDEND. Creditanstalt-Bankverein <CABV.VI> is likely to raise its 1987 dividend from the 1986 payment of 12 pct of share capital, deputy general-director Guido Schmidt-Chiari said. The 1985 dividend was 10 pct, unchanged from the previous year and Schmidt-Chiari noted that the parent bank's share capital had risen to 3.1 billion schillings at the end of 1986 from 2.7 billion a year earlier. Schmidt-Chiari made the forecast at a news conference when the bank announced a 1986 consolidated banking group net profit of 496.7 mln schillings for 1986, against 354.5 mln in 1985. Schmidt-Chiari did not elaborate on his dividend forecast. The banking group's consolidated balance sheet total rose to 453.4 billion schillings at year-end from 425.4 billion. General director Hannes Androsch said higher investment would lead to continuing growth in profits in future. Last year's better profits had resulted from improvements in services provided by the bank and also in profits on schilling lending. Schilling lending had grown last year and interest rate margins had also improved but remained unsatisfactory when compared with those in other countries, he said. Increased provisions for possible bad debts at home and abroad, particularly in Latin America, had lowered profits, Androsch said, but declined to give an exact figure. Schmidt-Chiari said that foreign lending business had fallen significantly due to exchange rate fluctuations, removing some 22 billion schillings from the balance sheet total. In an attempt to generate more foreign business, representative offices would be opened this year in Tokyo, Hong Kong, Moscow and Prague. Androsch welcomed government plans to abolish legal controls on foreigners buying voting shares and drawing dividends. Preference shares of state-controlled Creditanstalt rose eight schillings on the Vienna Bourse today to 2,008. Brokers said improved results had been widely expected by investors. Androsch said industrial holdings had performed better in 1986 than in previous years, giving a return on investment of 2.6 pct compared with 1.3 pct in 1985. Creditanstalt, Austria's largest bank, holds majority interests in 10 medium-sized and large Austrian companies. But he forecast its biggest industrial subsidiary, Steyr -Daimler-Puch AG <SDPV.VI> would return a 1987 result similar to the expected 1986 operating loss of 700 mln schillings.  
PULITZER PUBLISHING CO <PLTZC> 4TH QTR NET. Shr 47 cts vs 40 cts Net 4,258,000 vs 5,942,000 Revs 92.6 mln vs 77.1 mln Avg shrs 8,977,000 vs 15.0 mln Year Shr 1.22 dlrs vs 1.34 dlrs Net 16.4 mln vs 20.0 mln Revs 329.1 mln vs 272.1 mln Avg shrs 13.5 mln vs 15.0 mln NOTE: Interest expense 4,384,000 dlrs vs 545,000 dlrs in quarter and 6,979,000 dlrs vs 2,425,000 dlrs in year. 1986 year net reflects undisclosed amount of expenses for defense of takeover effort.  
NOVELL <NOVL> SETS TWO FOR ONE STOCK SPLIT. Novell Inc said its board declared a two-for-one stock split, payable to holders of record at the close of business on MArch 31. It said shareholders at the annual meeting approved a doubling of authorized common shares to 30 mln from 15 mln and a limitation of directors' liability.  
HEART FEDERAL <HFED> SETS TWO FOR ONE SPLIT. Heart Federal Savings and Loan Association said its board declared a two-for-one stock split, payable April 30 to holders of record April 15. The company said the split is subject to shareholder approval at the April 15 annual meeting of an increase in authorized common shares to 10 mln from five mln.  
NOVO INDUSTRI A/S (NVO.CO) YEAR 1986. Pre-tax income 788 mln Danish crowns vs 872 mln Sales 4.21 billion crowns vs 4.11 billion Income after tax 521 mln crowns vs 604 mln Earnings per 20-crown share 20.45 crowns vs 23.79 Dividend 20 pct (unchanged).  
OVERMYER CORP <OMCO> REGULAR DIVIDEND. Qtly div 10 cts vs 10 cts in prior qtr Payable March 31 Record March 23  
UNIFORCE TEMPORARY PERSONNEL INC <UNFR> 4TH QTR. Shr 18 cts vs 14 cts Net 556,036 vs 403,945 Sales 15.6 mln vs 13.6 mln Avg shrs 3,132,555 vs 2,934,285 Year Shr 60 cts vs 48 cts Net 1,805,229 vs 1,400,247 Sales 60.1 mln vs 52.3 mln Avg shrs 3,012,917 vs 2,940,219 NOTE: 1985 share data adjusted to reflect three for two stock split effective June 30, 1986  
PIC'N'SAVE CORP <PICN> 4TH QTR NET. Shr 45 cts vs 50 cts Net 18.0 mln vs 19.9 mln Sales 116.1 mln vs 108.8 mln Year Shr 1.01 dlrs vs 1.04 dlrs Net 39.8 mln vs 41.1 mln Sales 304.5 mln vs 278.1 mln NOTE: Share adjusted for three-for-two split in June 1986.  
VEBA'S RAAB KARCHER RAISES 1986 OPERATING PROFIT. Raab Karcher AG, a trading subsidiary of VEBA AG <VEBG.F>, said it increased operating profit in 1986 despite a sharp decline in turnover, and added there were good chances this profit level could be held in 1987. Operating profit rose to just under 120 mln marks in 1986, from around 100 mln in 1985. However, the group's third party sales fell sharply to 7.2 billion marks from 9.4 billion the year before, largely due to lower prices for energy products, particularly oil and coal, managing board chairman Klaus Giesel told a news conference.  
HOVNANIAN ENTERPRISES <HOV> SPLITS STOCK. Hovnanian Enterprises Inc said its board of directors has declared a two-for-one split of its outstanding common stock. The company said shareholders will receive one additional share for each share held at the close of business on March 23, 1987 and additional shares will be distributed on April 13, 1987.  
ESSELTE BUSINESS SYSTEMS INC <ESB> UPS PAYOUT. Qtly div 18 cts vs 14 cts prior Pay March 31 Record March 25  
KATY INDUSTRIES INC <KT> 4TH QTR NET. Oper shr profit 32 cts vs loss 66 cts Oper net profit 2,454,000 vs loss 3,558,000 Sales 96.1 mln vs 91.4 mln Year Oper shr profit 72 cts vs loss 63 cts Oper net profit 6,495,000 vs loss 1,833,000 Sales 368.1 mln vs 322.1 mln NOTE: Earnings exclude losses from discontinued consolidated operations of 460,000 dlrs, or eight cts a share vs 5,364,000 dlrs, or 86 cts a share in the quarter and 11,334,000 dlrs, or 1.82 dlrs a share vs 11,637,000 dlrs, or 1.88 dlrs a share for the year Earnings exclude a loss on the sale of discontinued consolidated operations of 200,000 dlrs, or three cts a share in the 1986 quarter and a loss of 4,960,000 dlrs, or 80 cts a share vs a gain of 4,404,000 dlrs, or 71 cts a share for the year NOTE: 1985 earnings exclude losses from discontinued unconsolidated operations of 5,488,000 dlrs, or 89 cts a share in each period 1985 earnings exclude gain from termination of defined benefit pension plan of 490,000 dlrs, or eight cts a share in the quarter and 1,438,000 dlrs, or 23 cts a share for the year  
<PMI FUND INC> SETS MONTHLY DIVIDENDS. PMI Fund Inc said its board declared monthly dividends of six cts for April, four cts for May, five cts for June, seven cts for July and six cts for August. The fund, which customarily omits dividends in March and September, last paid six cts in February.  Dividends declared today are payable April Three, May Six, June Four, July Three and August Six to holders of record March 23, April 17, May 15, June 12 and July 17.  
MERRY-GO-ROUND ENTERPRISES INC <MGRE> 4TH QTR. Jan 31 end Shr 51 cts vs 38 cts Net 3,254,000 vs 2,423,000 Sales 65.9 mln vs 51.1 mln Year Shr 1.18 dlrs vs 1.15 dlrs Net 7,485,000 vs 7,285,000 Sales 207.5 mln vs 164.1 mln  
TENERA LP <TLPZV> SETS INITIAL QUARTERLY. TENERA LP said it will make an initial quarterly distribution of 17 cts per unit on April 15 to holders of record March 31. The partnership said the dividend is greater than it had expectd to pay and was warranted by fourth quarter results and anticipated results for this year's first quarter. TENERA said it expects a comparable distribution for the second quarter.  It said about 13 cts per share of the first quarter amount will be taxable income.  
BAYER USA <BAYRY> AFFILIATES INCREASED SALES. Bayer USA Inc said sales of its affiliated operating cmpanies based in the U.S. increased in 1986 by 4.4 pct from the previous year. Combined sales were 4.2 billion dlrs, up from 4.0 billion dlrs in 1985, the company said. However, the company said net income was 106.9 mln dlrs, three pct below 1985. Bayer said its operating companies include Mobay Corp, Miles Laboratories Inc, Agfa-Gevaert Inc, Compugraphic Corp, Haarmann and Reimer Corp, Deerfield Urethane Inc and Helena Chemical Co. Bayer said Mobay, its primary chemicals company, reported net income of 83.4 mln dlrs, up eight pct of 1985. It also said Miles, its pharmaceutical and healthcare company, recorded net income of 29 mln dlrs, a 44 pct increase over 1985.  
DEB SHOPS INC <DEBS> SETS STOCK SPLIT. Deb Shops Inc said its board declared a 100 pct stock dividend and will increase the quarterly dividend to four cts from 3-1/4 cts after adjustm,ent for the split. The company said the split is payable April 17 to holders of record March 25.  The dividend increase will be effective with the April 30 payment, it said.  
VISUAL GRAPHICS SETS DIVIDENDS. Visual Graphics Corp <VGCA> <VGCB> said its board declared a quarterly dividend of 7-1/2 cts per share on its class "B" common stock and 8-1/4 cts per share on class "A" common stock payable April Three to shareholders of record as of March 23. The company set up the two classes of common stock in February. Previously, the company had paid a 7-1/2 cent per share quarterly dividend on one class of common stock.  
DEB SHOPS INC <DEBS> 4TH QTR JAN 31 NET. Shr 71 cts vs 57 cts Net 5,457,000 vs 4,299,000 Sales 62.9 mln vs 50.1 mln Year Shr 1.65 dlrs vs 1.37 dlrs Net 12.6 mln vs 10.4 mln Sales 181.4 mln vs 147.1 mln  
REGENCY CRUISES INC <SHIP> 4TH QTR NET. Shr profit nine cts vs loss two cts Net profit 1,419,000 vs loss 314,000 Revs 8,097,000 vs 4,794,000 Avg shrs 15.8 mln vs 15.5 mln Year Shr profit 37 cts vs loss 10 cts Net profit 5,695,000 vs loss 1,268,000 Revs 40.9 mln vs 4,794,000 Avg shrs 15.6 mln vs 12.5 mln NOTE: Company began operations Nov 17, 1985.  
SEAMAN FURNITURE CO INC <SEAM> 3RD QTR JAN 31. Shr 64 cts vs 51 cts Net 4,373,000 vs 3,346,000 Sales 59.8 mln vs 45.5 mln Avg shrs 6,808,000 vs 6,600,000 Nine mths Shr 1.57 dlrs vs 1.18 dlrs Net 10.7 mln vs 7,745,000 Sales 167.0 mln vs 123.1 mln  
NOVO INDUSTRI EARNINGS FALL DESPITE INCREASED SALES. Danish-based insulin and enzymes producer Novo Industri A/S (NVO.CO) said pre-tax earnings fell almost 10 pct in 1986 though sales rose by two pct. The pre-tax figure fell to 788 mln crowns from 872 mln in 1985, on sales increased from 4.1 billion to 4.2 billion, giving net earnings of 521 mln crowns against 604 mln in 1985. Earnings per 20-crown share went from 23.79 crowns to 20.45 crowns but the company proposed an unchanged 20 pct dividend. "Foreign exchange fluctuations in 1986 were a very significant factor behind developments in the result before and after tax," Novo said in a statement. "Not only the U.S. Dollar but also other currencies essential to Novo fell in 1986 in relation to the Danish crown," the statement added. In November 1986, Novo purchased 75 pct of shares in A/S Ferrosan, which heads a group specialising in research and development of CNS (central nervous treatment) treatments and the sale of pharmaceuticals and vitamins in Scandinavia. The 357 mln crowns paid in goodwill "had a very limited effect on the 1986 result," the Novo statement said.  
SCS/COMPUTE INC <SCOM> 3RD QTR JAN 31 LOSS. Shr loss 30 cts vs loss 43 cts Net loss 891,000 vs loss 969,000 Revs 1,930,000 vs 1,815,000 Avg shrs 2.9 mln vs 2.2 mln Nine Mths Shr loss one dlr vs loss 1.36 dlrs Net loss 2,622,000 vs loss 3,037,000 Revs 4,638,000 vs 4,105,000 Avg shrs 2.6 mln vs 2.2 mln  
EMPIRE OF CAROLINA INC <EMP> YEAR NET. Shr 1.26 dlrs vs 67 cts Net 7,299,000 vs 3,607,000 Revs 52.4 mln vs 40.7 mln Avg shrs 6,028,755 vs 2,408,766 NOTE: 1985 results restated to include Deltona Corp <DLT> investment on equity method.  
VHC LTD <VHCL> 4TH QTR OPER NET. Oper shr profit 18 cts vs loss one ct Oper net profit 387,832 vs loss 29,312 Revs 6,872,630 vs NA Year Oper shr profit 39 cts vs loss 23 cts Oper net profit 835,010 vs loss 441,836 Revs 20.8 mln vs NA Avg shrs 2,135,909 vs 1,885,909 NOTE: Excludes gains of 378,000 dlrs or 18 cts and 715,000 dlrs or 33 cts in current qtr and year, respectively, from benefit of tax loss carryforwards. Year-ago excludes losses of 75,809 dlrs or four cts in qtr and 146,061 dlrs or eight cts in year from discontinued operations. 1985 restated.  
TRANSTECH INDUSTRIES INC <TRTI> YEAR NET. Oper shr 91 cts vs seven cts Oper net 4,356,774 vs 289,764 Revs 69.2 mln vs 50.2 mln Avg shrs 4,736,692 vs 4,151,672 NOTE: 1985 net excludes 3,027,714 dlr loss from discontinued operations.  
ANOVA VENTURES SETS DIVIDEND IN DUEVEL SHARES. <ANova Ventures Corp> said its board declared a dividend payable in the form of registered shares of stock in <Duvel Corp>, a blind public pool. ANova describes itself as a publishing and financial services firm specializing in arranging revers acquisitions and mergers between blind pools/shells and private companies. ANova said it created Duvel to act as a blind pool and will seek an operating private company to merger with Duvel. Duvel has sold 300,000 common shares to a private investor group to finance expenses of registration and 640,000 shares will be paid to ANova stockholders as a dividend, it added.  
NUCOR CORP <NUE> RAISES QUARTERLY. Qtly div nine cts vs eight cts prior Pay May 12 Record March 31  
<KELSEY-HAYES CANADA LTD> YEAR NET. Shr 1.60 dlrs vs 3.12 dlrs Net 10.6 mln vs 20.6 mln Revs 162.5 mln vs 214.6 mln Note: 1985 shr restated to reflect January 31, 1986 stock split. 73 pct-owned by Kelsey-Hayes Co.  
RIGGS NATIONAL CORP <RIGS> SETS QUARTERLY. Qtly div 27-1/2 cts vs 27-1/2 cts prior Pay April 15 Record March 31  
TELEPHONE SUPPORT SYSTEMS INC <TSSI> 3RD QTR. Nov 30 end Shr four cts vs 11 cts Net 62,986 vs 174,158 Sales 720,906 vs 907,542 Year Shr 18 cts vs six cts Net 277,852 vs 94,263 Sales 2,247,374 vs 2,030,390  
NETWORK VIDEO INC <NVID> 3RD QTR FEB 28 NET. Shr one ct vs five cts Net 50,745 vs 161,019 Revs 478,700 vs 1,048,543 Avg shrs 4,350,000 vs 3,217,500 Nine mths Shr four cts vs 12 cts Net 169,275 vs 390,179 Revs 1,478,066 vs 2,658,692 Avg shrs 4,350,000 vs 3,217,500  
COMTECH INC <CMTL> 2ND QTR JAN 31 NET. Oper shr profit one ct vs profit two cts Oper net profit 63,000 vs profit 84,000 Sales 5,009,000 vs 4,042,000 1st half Oper shr profit two cts vs loss 17 cts Oper net profit 87,000 vs loss 794,000 Sales 9,838,000 vs 7,368,000 Backlog 17.8 mln vs 11.4 mln NOTE: Current year net excludes tax credits of 32,000 dlrs in quarter and 45,000 dlrs in half.  
BALTEK CORP <BTEK> 4TH QTR NET. Oper shr 21 cts vs 34 cts Oper net 480,000 vs 765,000 Revs 6,386,000 vs 5,862,000 Year Oper shr 1.20 dlrs vs 78 cts Oper net 2,692,000 vs 1,732,000 Revs 25.2 mln vs 20.3 mln NOTEL Net excludes tax credit 35,000 dlrs vs reversal of credit 40,000 dlrs in quarter and credits 79,000 dlrs vs 72,000 dlrs in year.  
MEM CO INC <MEM> DECLARES QTLY DIV. Qtly div 15 cts vs 15 cts prior Pay May 11 Record March 31.  
INSITUFORM OF NORTH AMERICA INC <INSUA> 4TH QTR. Shr nine cts vs four cts Net 658,159 vs 299,930 Revs 3,770,341 vs 2,614,224 Avg shrs 7,382,802 vs 6,747,442 Year Oper shr 33 cts vs 18 cts Oper net 2,287,179 vs 1,045,799 Revs 13.1 mln vs 8,577,853 Avg shrs 6,874,505 vs 5,951,612 NOTE: 1985 year net includes 13,000 dlr tax credit.  
MAJOR REALTY CORP <MAJR> 4TH QTR LOSS. Shr loss 19 cts vs profit 11 cts Net loss 1,140,270 vs profit 590,463 Revs 1,259,164 vs 3,225,512 Year Shr loss 67 cts vs profit 10 cts Net loss 4,004,840 vs profit 580,488 Revs 3,184,480 vs 9,123,041  
NUTMEG INDUSTRIES INC <NUTM> YEAR JAN 31 NET. Shr 14 cts Net 510,917 Sales 12.3 mln NOTE: Share adjusted for five for four stock split in January 1987. Backlog 13.0 mln dlrs vs 3,733,000 dlrs. Company began operating January 27, 1986.  
NATWEST, RABO UNIT REPORTS 8.8 PCT PROFIT GROWTH. Dutch bank F. Van Lanschot Bankiers N.V., Co-owned by National Westminster PLC <NWBL.L> and RABOBANK B.A. <RABN.A> , said 1986 net profit rose 8.8 pct to 24.1 mln guilders on a 4.8-pct higher balance sheet total of 6.2 billion. Van Lanschot Bankiers is a subsidiary of Van Lanschot Beleggingscompagnie B.V. In which Britain's National Westminster Bank PLC and Dutch cooperative bank RABOBANK Nederland B.A. Each have a 40-pct stake. Commercial Union's Dutch insurance unit <Delta Lloyd Verzekeringsgroep N.V.> has a 5.4-pct stake in Van Lanschot, which lowered risk provisions to 22.5 mln guilders.  
BEN AND JERRY'S HOMEMADE INC <BJIC> 4TH QTR NET. Shr 10 cts vs two cts Net 163,832 vs 31,063 Sales 5,434,430 vs 3,167,735 Avg shrs 1,712,231 vs 1,533,277 Year Shr 59 cts vs 41 cts Net 1,016,375 vs 550,625 Sales 19.7 mln vs 9,755,018 Avg shrs 1,710,256 vs 1,327,172  
BONNEVILLE PACIFIC CORP <BPCO> 3RD QTR JAN 31. Shr 52 cts vs 41 cts Net 4,921,601 vs 3,157,070 Revs 35.8 mln vs 31.7 mln Avg shrs 8,939,955 vs 7,600,000 Nine mths Shr 52 cts vs 34 cts Net 4,604,406 vs 2,585,621 Revs 36.0 mln vs 32.1 mln Avg shrs 8,939,955 vs 7,600,000  
JC PENNEY <JCP> UP ON SMITH BARNEY OPINION. J.C. Penney Co's stock rose sharply after analyst William Smith of Smith Barney recommended the stock, based on the company's strong earnings momentum and the possibility of a stock buyback, dividend hike or stock split, traders said. "I am very impressed with the strong basic earnings story," analyst Smith said, noting that the company has "fine tuned its buying and inventories, and has admirably controlled costs in a time that they needed to." The stock jumped 2-1/2 to 98-3/4. Smith said the company ended 1986 with a strong cash position of about 639 mln dlrs as compared to 158 mln dlrs the year before. "This implies the possibility of a share buyback, or significant dividend increase or a stock split," he said. In addition, he said the company has been gradually adjusting its merchandise mix and its gross margins have been improving. Smith expects the company to earn 8.25-to-8.50 dlrs a share in 1987 as compared to the 7.06 dlrs a share earned last year. Last year's results include a 69 cent charge for the buyback of debt.  
T CELL SCIENCES INC <TCEL> 3RD QTR JAN 31 LOSS. Shr loss one ct vs loss 16 cts Net loss 117,989 vs loss 528,394 Revs 820,484 vs 35,186 Avg shrs 8,226,577 vs 3,150,000 Nine mths Shr loss seven cts vs loss 37 cts Net loss 527,864 vs loss 1,177,434 Revs 1,975,487 vs 90,875 Avg shrs 7,277,418 vs 3,150,000  
MITCHELL ENERGY AND DEVELOPMENT CORP <MND> NET. 4th qtr Jan 31 Shr five cts vs 28 cts Net 2,448,000 vs 13.3 mln Revs 156.1 mln vs 225.5 mln Avg shrs 47.3 mln vs 47.8 mln Year Shr 18 cts vs 1.01 dlrs Net 8,430,000 vs 48.2 mln Revs 587.9 mln vs 843.9 mln Avg shrs 47.4 mln vs 47.9 mln  
GROUNDWATER TECHNOLOGY INC <GWTI> 3RD QTR JAN 31. Shr 19 cts vs 12 cts Net 850,000 vs 432,000 Sales 9,850,000 vs 4,783,000 Avg shrs 4,504,000 vs 3,527,000 Nine mths Shr 57 cts vs 37 cts Net 2,400,000 vs 1,281,000 Sales 25.2 mln vs 12.8 mln Avg shrs 4,233,000 vs 3,485,000  
SEVEN OAKS INTERNATIONAL INC <QPON> IN PAYOUT. Qtly div four cts vs four cts prior Pay April 15 Record March 23  
PROPERTY TRUST OF AMERICA <PTRAS> YEAR NET. Ope shr 63 cts vs 80 cts Oper net 3,169,000 vs 3,757,000 Revs 9,585,000 vs 10.2 mln Avg shrs 5,070,000 vs 4,721,000 NOTE: Net excludes gains from sale of investments of 887,000 dlrs vs 304,000 dlrs.  
CHI-CHI'S INC <CHIC> 3RD QTR JAN 31 LOSS. Shr loss 38 cts vs profit eight cts Net loss 10.4 mln vs profit 2,144,317 Revs 72.9 mln vs 67.4 mln Nine mths Shr loss 21 cts vs profit 38 cts Net loss 5,747,393 vs profit 10.1 mln Revs 224.6 mln vs 200.6 mln NOTE: Current year net both periods includes 20.0 mln dlr pretax charge for disposition of 21 underperforming company-owned restaurants. Current year net includes tax credits of 3,205,000 dlrs in quarter and 7,305,000 dlrs in year.  
CHI-CHI'S <CHIC> TAKES 20 MLN DLR CHARGE. Chi-Chi's Inc said it has taken a 20 mln dlr pretax charge against earnings for the third quarter ended January 31 to cover the cost of disposing of 21 "underperforming" company-owned restaurants. The company also said it has agreed to repurchase up to three mln common shares on the open market. The company now has about 27.1 mln shares outstanding. Chi-Chi's today reported a loss for the third quarter ended January 31, after the pretax charge and a 7,305,000 dlr tax credit, of 10.4 mln dlrs, compared with a year-earlier profit of 2,144,317 dlrs. Chi-Chi's said it believes the disposition of the restaurants has the potential of increasing its pretax earnings by about two mln dlrs next fiscal year. The company said it will use existing cash resources for the share repurchases.  
DUPONT <DD> UP ON RECOMMENDATIONS. Shares of Du Pont Co rose today after accumulating recommendations from Shearson Lehman Brothers and First Boston, traders said. Du Pont, which opened with a two point gain, stood at 109-1/8, up 1-1/8. First Boston's analyst was not available for comment. Analyst Theodore Semegran of Shearson said he raised his earnings estimates for the company to 7.25 dlrs a share in 1987 and eight dlrs a share in 1988. The company earned 6.35 dlrs a share in 1986. "Good domestic demand, higher operating earnings and a strng export business, probably benefitting from a lower dollar and effects of reduced imports in chemicals will continue to aid Du Pont." He also noted that energy earnings in the first quarter are better than expected because of the rise in crude prices. Semegran expects first quarter earnings of about 1.85 dlrs a share from 1.67 dlrs last year. He also expects the company to raise its annual dividend about 20 to 30 cts a share, from its current dividend of 3.20 dlrs a share, "and a stock split is possible but it has a low probablility."  
LORD ABBETT AND CO DECLARES MUTUAL FUND DIVS. LORD ABBETT VALUE APPRECIATION FUND Annual div 33 cts vs 23 cts prior Long term capital gain 2.06 vs 75 cts prior Short term capital gain 18 cts vs 11 cts prior Pay April 6 Record March 12  LORD ABBETT U.S. GOVERNMENT SECURITIES FUND Daily div .029 cts vs .029 cts prior Pay April 15 Record April 15 LORD ABBETT TAX FREE INCOME NATIONAL SERIES Daily .068 cts vs .068 prior Pay April 15 Record April 15  LORD ABBETT TAX FREE INCOME FUND NY SERIES Daily .067 cts vs .067 cts prior Pay April 15 Record April 15  LORD ABBETT TAX FREE INCOME FUND TEXAS SERIES Daily .059 cts vs .059 cts prior Pay April 15 Record April 15 LORD ABBETT CALIFORNIA TAX FREE INCOME FUND Daily .062 vs .063 cts prior Pay April 15 Record April 15  
<ASSOCIATES CORP OF NORTH AMERICA> 1ST QTR NET. Qtr ended Jan 31 Net 55.3 mln dlrs vs 51.7 mln dlrs Revs 419.1 mln vs 391.7 mln Note: Revs include investment and other income of 18.4 mln dlrs vs 18.5 mln dlrs. Company is wholly owned by Gulf and Western Corp <GW>.  
NEWPORT PHARMACEUTICALS <NWPH> 3RD QTR LOSS. Period ended January 31. Shr loss six cts vs profit one ct Net loss 536,000 vs profit 166,000 Revs 2,099,000 vs 3,149,000 Avg shrs 10,429,000 vs 9,943,000 Nine Mths Shre loss nine cts vs loss five cts Net loss 790,000 vs loss 377,000 Revs 7,089,000 vs 7,646,000 Avg shrs 10,406,000 vs 9,351,000 Note: Full name Newport Pharmaceuticals International Inc.  
THE RAYMOND CORP <RAYM> DECLARES QTLY DIV. Qtly div 11-3/4 cts vs 11-3/4 cts prior Pay March 27 Record March 13  
GEVAERT NV <GEVN.BR> 1986 YEAR. Consolidated group net profit 1.88 billion francs vs 1.29 billion. Net financial and operating profit 1.11 billion vs 825.1 mln. Extraordinary earnings 774.7 mln vs 462.8 mln. Net dividend 165 francs vs 150.  
NICOR INC <GAS> REGULAR DIVIDEND SET. Qtly div 45 cts vs 45 cts previously Pay May 1 Record March 31  
HANDLEMAN CO <HDL> SETS QUARTERLY. Qtly div 14 cts vs 14 cts prior Pay April 10 Record March 27  
PERINI CORP <PCR> SETS QUARTERLY. Qtly div 20 cts vs 20 cts prior Pay June 16 Record May 22  
INTERNATIONAL BANKNOTE CO INC <IBK> 4TH QTR LOSS. Oper shr loss 11 cts vs loss 14 cts Oper net loss 1,963,000 vs loss 2,199,000 Revs 17.5 mln vs 40.9 mln Year Oper shr profit nine cts vs profit two cts Oper net profit 1,555,000 vs 456,000 Revs 86.3 mln vs 143.7 mln NOTE: Net excludes extraordinary tax charges of 115,000 dlrs vs 995,000 dlrs in quarter and credits 8,096,000 dlrs vs 1,173,000 dlrs in year. 1985 year net includes pretax gain 7,400,000 dlrs from termination of pension plan. 1985 net includes pretax charge 1,200,000 dlrs in quarter and gain 1,400,000 dlrs in year from restructuring and consolidation. 1985 quarter net includes 1,480,000 dlr tax credit. 1986 year net includes pretax gain 17.2 mln dlrs from sale of foreign subsidiary.  
SPEED-O-PRINT BUSINESS <SBM> 4TH QTR NET. Shr loss seven cts vs profit 17 cts Net loss 102,000 vs profit 258,000 Revs 1,695,000 vs 1,371,000 Year Shr loss 33 cts vs profit 26 cts Net loss 488,000 vs profit 384,000 Revs 6,700,000 vs 4,774,000 NOTE: 1986 results include operations of radio stations WJYE-FM for the full year and WNNR-AM for the last six months. Speed-O-Print Business Machines Corp is full name of company.  
ASBESTEC INDUSTRIES <ASBS> SETS STOCK SPLIT. Asbestec Industries Inc said its board declared a three-for-two stock split, payable April 17, record April Three.  
QUAKER OATS CO <OAT> REGULAR DIVIDEND. Qtly div 20 cts vs 20 cts previously Pay April 15 Record March 23  
PPG INDUSTRIES <PPG> SEES GROWTH IN 1987. PPG Industries Inc will continue to show earnings growth in 1987 despite a difficult economic climate, the company said in its annual report, mailed to shareholders today. For 1986, the company's earnings rose five pct, to 316 mln dlrs, on revenues that increased eight pct, to 4.7 billion dlrs. Earnings per share were 2.66 dlrs, compared with 2.27 dlrs. The company added that in 1986 its return on equity reached 17.3 pct, up from 15.5 pct in 1985 and close to its goal of 18 pct.  
SCIENCE DYNAMICS CORP <SIDY> YEAR NET. Shr 24 cts vs 13 cts Net 704,803 vs 385,081 Revs 5,669,682 vs 4,142,095  
FOODARAMA SUPERMARKETS INC <FSM> 1ST QTR JAN 31. Shr 42 cts vs 35 cts Net 570,000 vs 476,000 Sales 122.4 mln vs 123.1 mln NOTEL Prior year net includes pretax charge 453,000 dlrs for reopening of eight stores.  
ENGINEERING MEASUREMENTS CO <EMCO> 3RD QTR NET. Qtr ends Jan 31 Shr four cts vs 12 cts Net 102,508 vs 264,910 Revs 2,278,083 vs 2,536,312 Nine mths Shr 18 cts vs 15 cts Net 489,253 vs 404,877 Revs 6,679,745 vs 6,613,551 NOTE: Excludes discontinued operations gain of 40,519 dlrs in the third quarter fiscal 1986, and loss of 9,666 dlrs in the nine months fiscal 1986.  
BOOTHE FINANCIAL CORP <BCMP> 4TH QTR NET. Shr one ct vs 24 cts Net 43,000 vs 1,032,000 Revs 10 mln vs 4.9 mln Avg shrs 3.7 mln vs 4.3 mln 12 mths Shr 1.02 dlrs vs 1.62 dlrs Net 3,950,000 vs 7,308,000 Revs 30.8 mln vs 33.3 mln Avg shrs 3.9 mln vs 4.5 mln NOTE: 1985 restated to reflect tax loss carryforwards.  
CONSOLIDATED NATURAL GAS CO <CNG> IN PAYOUT. Qtly div 37-1/2 cts vs 37-1/2 cts prior Pay May 15 Record April 15  
SANDUSKY PLASTICS INC <SPI> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay March 31 Record March 20  
<FOR BETTER LIVING INC> 4TH QTR NET. Shr profit primary 91 cts vs loss 86 cts Shr profit diluted 90 cts vs loss 86 cts Net profit 787,000 vs loss 751,000 Sales 20 mln vs 12.5 mln Year Shr profit profit 2.63 dlrs vs profit five cts Shr profit diluted 2.59 dlrs vs profit five cts Net profit 2,273,000 vs profit 43,000 Sales 70.1 mln vs 47.1 mln Note: Prior qtr and year figures include gains on disposal of discontinued operations of 76,000 dlrs and 79,000 dlrs, respectively.  
NEWPORT ELECTRONICS INC <NEWE> 4TH QTR NET. Oper shr loss nine cts vs loss four cts Oper net loss 108,000 vs loss 55,000 Sales 3,029,000 vs 2,694,000 Year Oper shr profit 42 cts vs profit 15 cts Oper net profit 511,000 vs profit 177,000 Sales 13.3 mln vs 11.2 mln Avg shrs 1,233,136 vs 1,217,981 Note: Current qtr and year figures exclude operating loss carryforward gain of 26,000 dlrs vs gain of 88,000 dlrs in prior year periods.  
TRANSCO EXPLORATION PARTNERS LTD <EXP> IN PAYOUT. Qtly div 44 cts vs 44 cts prior Pay June One Record May Eight  
TRANSCO ENERGY CO <E> SETS QUARTERLY. Qtly div 68 cts vs 68 cts prior Pay June One Record May Eight  
TOTAL ERICKSON RESOURCES LTD <TLEXF> YEAR NET. Shr profit nine cts vs loss 45 cts Net profit 2,500,000 vs loss 9,900,000 Revs 16,800,000 vs 3,300,000 Note: 1986 net includes 2.6 mln dlr or nine ct a shr writedown of nine pct stake in <Trans-Canada Resources Ltd>. 1985 results reflect only six mths of mining operations due to merger of Erickson Gold Mines Ltd and Total Eastcan Exploration Ltd on June 30, 1985.  
BOWNE AND CO INC <BNE> SETS STOCK SPLIT. Bowne and Co Inc said its board declared a two-for-one stock split, payable May 10 to holders of record April 17.  
NUMAC OIL AND GAS LTD <NMC> YEAR NET. Oper shr 23 cts vs 77 cts Oper net 5,255,179 vs 17.6 mln Revs 37.8 mln vs 73.7 mln NOTE: Cash flow 19.5 mln dlrs or 86 cts shr vs 36.7 mln dlrs or 1.62 dlrs shr. 1985 net excludes 32 ct shr loss from discontinued operations. Gross proven and probable reserves of crude oil and natural gas liquiids 18.4 mln barrels, off 7.6 pct from a year before.  
FARAH <FRA> AGAIN OMITS QUARTERLY DIVIDEND. Farah Inc said it omitted its quarterly common stock dividend for the second consecutive quarter. The company, which last paid a quarterly common dividend of 22 cts a share in December, said it will consider future dividend payments on the basis of improved profitability and cash flow. Farah said it expects to turn a profit for the balance of 1987. For its first quarter ended January 31, Farah lost 1,891,000 dlrs, or 32 cts a share, on sales of 71 mln dlrs. In addition, Farah said it received shareholder approval to change its name to Farah Inc from Farah Manufacturing Co.  
NUMAC OIL <NMC> SEES RESULTS IMPROVING. Numac Oil and Gas Ltd said it expects significant improvement in operating performance during 1987. The company today reported 1986 earnings from continuing operations of 5,255,179 dlrs, down from 17.6 mln dlrs a yuear earlier, due to lower prices for crude oil and pipeline capacity constraints. Numac said changes introduced by federal and provincial governments during 1986 should help results.  
H.J. HEINZ CO 3RD QTR SHR 55 CTS VS 46 CTS.  H.J. HEINZ CO 3RD QTR SHR 55 CTS VS 46 CTS  
H.J. HEINZ RAISES QUARTERLY TO 28 CTS FROM 25 CTS.  H.J. HEINZ RAISES QUARTERLY TO 28 CTS FROM 25 CTS  
<RANCHMEN'S RESOURCES LTD> YEAR LOSS. Shr loss seven cts vs loss 3.83 dlrs Net profit 1,700,000 vs loss 13,900,000 Revs 18.7 mln vs 25.6 mln Note: Current shr after preferred dividends of 2.0 mln dlrs Prior shr and net includes 34.5 mln dlr writedown on oil properties  
SUMITOMO BANK <SUMI> DECLARES STOCK DIVIDEND. Sumitomo Bank of California said it declared a 7-1/2 pct stock dividend in addition to its regular quarterly cash dividend of 29 cts per share. Both dividends are payable April 27 to shareholders of record March 31, the company said.  
LSB BANCSHARES INC <LXBK> RAISES PAYOUT. Qtly div 18 cts vs 17 cts prior Pay April 15 Record April One  
H.J. HEINZ CO <HNZ> 3RD QTR JAN 28 NET. Shr 53 cts vs 46 cts Qtly div 28 cts vs 25 cts prior Net 74.7 mln vs 63.2 mln Revs 1.08 billion vs 1.01 billion Nine mths Shr 1.78 dlrs vs 1.60 dlrs Net 244.4 mln vs 219.7 mln Revs 3.33 billion vs 3.15 billion Note: Dividend payable April 10 to shareholders of record March 23.  
SOFTWARE AG <SAGA> SEES WEAK RESULTS. Software AG Systems Inc said it expects to report earnings for its third quarter "substantially weaker" than earnings of prior periods due to an unexpected shortfall in U.S. domestic license revenues. For the second quarter ended November 30, Software AG earned 2,089,000 dlrs, down from 5,014,000 dlrs a year before. In last year's third quarter, Software AG earned 1,598,000 dlrs.  
MILES LABORATORIES INC 4TH QTR NET. Net 3,563,000 vs 2,821,000 Sales 318.6 mln vs 305.4 mln Year Net 28,950,000 vs 20,167,000 Sales 1.22 billion vs 1.17 billion Note: Company is a subsidiary of Bayer AG of West Germany. 1986 figures exclude Miles' Bayvet animal health business, sold Jan. 1, 1986, to Mobay Corp, another Bayer AG affiliate.  
INTELLIGENT SYSTEMS MLP <INP> 3RD QTR DEC 31 NET. Shr profit 20 cts vs profit five cts Net profit 2,273,000 vs profit 563,000 Rev 38.7 mln vs 30.3 mln Avg shares 11,138,503 vs 10,982,699 Nine months Shr profit 40 cts vs loss 10 cts Net profit 4,448,000 vs loss 1,123,000 Rev 108.4 mln vs 75.2 mln NOTE: Third qtr net includes gain from discontinued operations of 3.5 mln dlrs, or 31 cts a share, vs 271,000, or two cts a share, in fiscal 1985's third qtr. Nine months net includes gain from discontinued operations of 3.8 mln dlrs, or 34 cts a share, vs 731,000 dlrs, or seven cts a share, in the first nine months of fiscal 1985.    
SHADOWFAX RESOURCES LTD <SHFXF> YEAR LOSS. Shr loss three cts vs profit 14 cts Net loss 79,778 vs profit 458,176 Revs 1,063,623 vs 1,165,186 Note: 1986 year includes 400,000 dlr writedown on Utah oil and gas properties  
KURZWEIL MUSIC SYSTEMS INC <KURM> 4TH QTR LOSS. Shr loss 21 cts vs loss 29 cts Net loss 1,246,000 vs loss 1,420,000 Revs 2,120,000 vs 1,186,000 Avg shrs 5,853,587 vs 4,880,427 Year Shr loss 85 cts vs loss 1.21 dlrs Net loss 4,968,000 vs loss 5,274,000 Revs 6,536,000 vs 5,056,000 Avg shrs 5,854,543 vs 4,367,864  
J.P. MORGAN AND CO INC <JPM> SETS QUARTERLY. Dividend 34 cts vs 34 cts previously Pay April 15 Record March 23  
INTELLIGENT SYSTEMS MLP <INP> MAKES CASH PAYOUT. Intelligent Systems Master Limited Partnership said it will make a cash distribution of 25 cts a unit in early April to unitholders of record as of March 31. The company said continued strength in its results prompted the move. Intelligent Systems added that if current plans to sell some of its assets, as previously announced, are successful, it may make further distributions estimated at 15 cts to 25 cts a unit. Earlier, the company reported fiscal third quarter ended December 31 net income of 2.3 mln dlrs, or 20 cts a share, up from fiscal 1985 third quarter results of 563,000 dlrs, or five cts a share. In addition, it reported fiscal 1986 nine months' net income of 4.4 mln dlrs, or 40 cts a share, versus a loss of 1.1 mln dlrs, or 10 cts a share, in fiscal 1985's first three quarters.  
KURZWEIL <KURM> HAS REDUCED WORK FORCE. Kurzweil Music Systems Inc said it has taken steps this year to reduce costs, including a 10 to 15 pct reduction in its work force. A spokesman said the company now has about 70 employees. It said other reductions include the use of professional services, administrative costs, manufacturing overhead and non-essential development services, adding these cuts are expected to have a significant impact beginning in the second quarter. Earlier today Kurzweil reported a 1986 loss of 85 cts a share compared to a 1985 loss of 1.21 dlrs a share.  
HEINZ <HNZ> HAS HIGHER NET DESPITE HIGHER COSTS. H.J. Heinz Co said net income for the third quarter rose 18.2 pct despite an 17.2 pct increase in marketing expenses. Meanwhile, the company said it raised its quarterly dividend to 28 cts a share from 25 cts a share in part on the expectation that its tax rate under the new tax law will result in greater cash flow. For the third quarter ended January 31, Heinz earned 74.7 mln dlrs, or 55 cts a share, up from earnings of 63.2 mln dlrs, or 46 cts a share, for the year-ago quarter. For the nine months, the company posted a profit of 244.4 mln dlrs, or 1.78 dlrs a share, compared with a profit of 219.7 mln dlrs, or 1.60 dlrs a share, for the year-ago period. "Based on the company's performance for the first nine months, we expect to achieve our 23rd consecutive year of new growth records," Anthony J.F. O'Reilly, Heinz's newly elected chairman.  
WALL STREET STOCKS/ICH CORP <ICH>. ICH Corp's stock continued under pressure because of lower earnings expectations, Wall Street analysts said. The stock was down one today at 17-1/4, and down about four since Thursday, when ICH announced it would be reporting lower-than-expected fourth quarter net income. The company said it would report full year 1986 net income of 2.00 dlrs per share compared to 2.32 dlrs per share in 1985. Analysts said they had estimated 1987 net at 3.00-4.00 dlrs and were now looking for at 2.50 dlr to 2.80 dlr range. ICH officials were unavailable for comment.  
INVACARE CORP <IVCR> 4TH QTR NET. Shr profit 26 cts vs profit 19 cts Net profit 1,458,000 dlrs vs profit 1,070,000 dlrs Rev 30.9 mln dlrs vs 27.5 mln dlrs 12 mths Shr profit 60 cts vs loss 19 cts Net profit 3,367,000 dlrs vs loss 1,061,000 dlrs Revs 111.5 mln dlrs vs 94.3 mln dlrs  
<RENAISSANCE ENERGY LTD> YEAR NET. Shr 47 cts vs 31 cts Net 4,757,000 vs 2,466,000 Revs 32.8 mln vs 33.5 mln Avg shrs 12,638,000 vs 8,941,000  
INVACARE <IVCR> EXPECTS HIGHER 1987 SALES. Invacare Corp chairman, president and chief executive officer A. Malachi Mixon III said he expects the home healthcare equipment company to post sales increases in the 10 to 15 pct range in 1987. Mixon said the increases should come from internal growth as well as potential acquisitions. "Invacare is aggressively seeking acquisitions to complement the company's existing product lines," Mixon said. Earlier, the company reported fourth quarter 1986 net of 1.5 mln dlrs, or 26 cts a share, up from 1.1 mln dlrs, or 19 cts a share, in 1985's fourth quarter. Invacare also reported 1986 net income of 3.4 mln dlrs, or 60 cts a share, up from a loss of 1.1 mln dlrs, or 19 cts a share, in 1985.  
LAMSON AND SESSIONS CO <LMS> 4TH QTR LOSS. Oper shr loss 26 cts vs profit five cts Oper net loss 1,506,000 vs profit 312,000 Revs 42 mln vs 27.9 mln Year Oper shr loss 43 cts vs profit 16 cts Oper net loss 2,535,000 vs profit 1,236,000 Revs 129.9 mln vs 120.3 mln NOTE: Excludes discontinued operations loss 1.42 dlrs a share versus loss nine cts in the quarter, and loss 1.62 dlrs a share versus loss 12 cts in the year. Also excludes extraordinary loss of six cts a share in the fourth quarter 1985, and gain of 1.81 dlrs a share in full year 1985. Also excludes 1986 full year gain of 80 cts per share from accounting change.  
RESTURANT ASSOCIATES INDUSTRIES INC <RAA>4TH QTR. Shr 26 cts vs 36 cts Shr diluted 25 cts vs 36 cts Net 1,389,000 vs 1,412,000 Revs 56.9 mln vs 35.1 mln Avg shrs 5,412,000 vs 3,962,000 Year Shr 90 cts vs 75 cts Shr diluted 86 cts vs 75 cts Net 4,692,000 vs 2,961,000 Revs 201.4 mln vs 140.0 mln Avg shrs 5,234,000 vs 3,954,000 NOTE: Results for 14 and 53 week periods ended January 3, 1987, vs 13 and 52 week periods ended December 28, 1985 1985 net in both periods includes gain of 99,000 dlrs from tax loss carryforward Spokeswoman said average shares outstanding on a diluted basis were not available  
SOUTHERN NEW ENGLAND TELECOM <SNG> DECLARES DIV. Qtly div 72 cts vs 72 cts prior Pay April 15 Record March 23 NOTE: Company's full name is Southern New England Telecommunications Corp.  
EMPIRE OF CAROLINA INC <EMP> 4TH QTR NET. Shr 71 cts vs 15 cts Net 4,234,000 dlrs vs 803,000 dlrs Revs 15.4 mln dlrs vs 10.3 mln dlrs 12 mths Shr 1.26 dlrs vs 67 cts Net 7,299,000 dlrs vs 3,607,000 dlrs Revs 52.5 mln dlrs vs 40.7 mln dlrs NOTE: Empire's investment in the Deltona Corp is reported on the equity method beginning the fourth qtr of 1986. Amounts for 1985 and the first three qtrs of 1986 have been restated to reflect the retroactive application. During 1986, the 17-1/2 pct debentures and 9-7/8 dlrs preferred stock were redeemed or converted resulting in 6,028,755 common shares outstanding at December 31, 1986 as compared to 2,408,766 common shares outstanding at December 31, 1985.  
ENSECO INC <NCCO> 4TH QTR LOSS. Oper shr loss six cts vs profit seven cts Oper net loss 481,517 vs profit 487,432 Revs 7,492,686 vs 5,575,043 Avg shrs 8.5 mln vs 7.2 mln Year Oper shr loss six cts vs profit 34 cts Oper net loss 465,043 vs profit 2,283,811 Revs 29.5 mln vs 19.8 mln Avg shrs 7.8 mln vs 6.7 mln NOTE: Excludes extraordinary credit of four cts a share in fourth quarter 1986, and 15 cts in year.  
BANGOR HYDRO-ELECTRIC CO <BANG> SETS DIVIDEND. Qtly div 25 cts vs 25 cts Pay April 20 Record March 31  
HERLEY MICROWAVE <HRLY> 2ND QTR JAN 31 NET. Shr nine cts vs 17 cts Net 275,000 vs 490,000 Rev 2.4 mln vs four mln Six months Shr 29 cts vs 31 cts Net 885,000 vs 884,000 Rev 6.1 mln vs 7.1 mln NOTE: Company's full name is Herley Microwave Systems Inc.  
LAMSON/SESSIONS <LMS>DROPS RAIL PARTS OPERATIONS. Lamson and Sessions Co said it has decided to discontinue operations of Youngstown Steel Door, a maker of components and equipment for railroad freight cars. The company said the unit is to be sold sometime this year, so was included as discontinued operations in its 1986 results announced earlier today. The company reported a loss from continuing operations of 2.5 mln dlrs for the year, against a 1985 profit of 1.2 mln dlrs. For discontinued operations, it reported a loss of 9.5 mln dlrs compared to a year earlier loss of 922,000 dlrs.  
WALLACE COMPUTER SERVICES INC <WCS> DIVIDEND. Qtly div 15 cts vs 15 cts previously Pay June 19 Record June One  
IROQUOIS BRANDS LTD <IBL> 4TH QTR LOSS. Oper shr loss 97 cts vs loss 73 cts Oper net loss 883,000 vs loss 659,000 Revs 19.4 mln vs 16.7 mln 12 mths Oper shr loss 2.37 dlrs vs loss 1.97 dlrs Oper net loss 2,228,000 vs loss 2,145,000 Revs 72.4 mln vs 63.8 mln NOTE: Excludes gain 3.41 dlrs a share versus gain 41 cts in the quarter, and gain 5.68 dlrs a share versus gain 1.99 dlrs in the year from discontinued and disposed operations.  
AERO SERVICES <AEROE> SEES BETTER 1987. Aero Services International Inc said it expects to achieve improvements in overall operations in the year ending September 30, 1987. Earlier, Aero reported a 1986 year end net loss of 3.0 mln dlrs compared to a profit of 483,000 dlrs in 1985. The company said the loss was attributable to costs associated with its acquisition costs and operating losses of nine Beckett Aviation fixed base operations purchased in August 1985 and discontinued weather service and flight simulator segments.  
AERO SERVICES INTERNATIONAL INC <AEROE> YEAR. Shr loss 63 cts vs profit 10 cts Net loss 3.0 mln vs profit 483,000 Revs 61.9 mln vs 43.7 mln NOTE:1986 net loss includes loss of 1.4 mln dlrs or 28 cts a share from discontinued operations. 1986 revenues include revenues for the last eight months of Beckett Aviation, acquired in September of 1985. Year ended September 30, 1986.  
VISTA RESOURCES INC <VIST> 4TH QTR NET. Shr 1.36 dlrs vs one dlr Net 1,010,249 vs 750,856 Revs 15.2 mln vs 11.9 mln 12 mths Shr 3.24 dlrs vs 2.18 dlrs Net 2,407,186 vs 1,627,250 Revs 57 mln vs 53.1 mln  
BRAE CORP <BRAE> 3RD QTR DEC 31 LOSS. Shr loss 1.32 dlrs vs profit two cts Net loss 5,666,000 vs profit 84,000 Revs 12.0 mln vs 21.7 mln Nine mths Shr loss 1.87 dlrs vs loss 71 cts Net loss 8,030,000 vs loss 3,062,000 Revs 40.9 mln vs 53.0 mln Note: includes losses from discontinued operations of 190,000 dlrs vs loss 185,000 dlrs in 3rd qtr and 731,000 dlrs loss vs 815,000 dlrs loss in nine mths.  
<CANADIAN GYPSUM CO LTD> YEAR NET. Shr 3.13 dlrs vs 2.02 dlrs Net 39.1 mln vs 26.9 mln Revs 203.2 mln vs 173.8 mln  
SOUTHERNNET INC <SOUT> 4TH QTR NET. Shr 32 cts vs four cts Net 3,370,000 vs 353,000 Revs 27.8 mln vs 20.2 mln Year Shr 35 cts vs 67 cts Net 3,543,000 vs 3,845,000 Revs 103.6 mln vs 74.8 mln  
SYLVAN LEARNING CORP <SLVN> NINE MONTHS DEC 31. Shr loss 43 cts vs profit eight cts Net loss 3.1 mln vs profit 502,896 Revs 5.6 mln vs 4.2 mln NOTE:1986 net includes negative effect of accounting change of 354,650 or five cts a share.  
DOLLAR GENERAL CORP <DOLR> 4TH QTR NET. Shr 13 cts vs 40 cts Net 2,509,000 vs 7,582,000 Revs 186.2 mln vs 182.1 mln Year Shr 23 cts vs 95 cts Net 4,318,000 vs 17.8 mln Revs 564.8 mln vs 584.4 mln  
LIONEL CORP <LIO> 4TH QTR JAN 31 OPER NET. Oper shr 1.05 dlr vs 51 cts Oper net 14.1 mln vs 5,669,000 Revs 163.2 mln vs 133.2 mln Avg shrs 13.5 mln vs 11.5 mln Year Oper shr 65 cts vs 26 cts Oper net 8,664,000 vs 1,906,000 Revs 287.8 mln vs 251 mln Avg shrs 13.4 mln vs 8,403,562 NOTE: Prior year 4th qtr and year oper net excludes 13.1 mln dlrs and 17.4 mln dlrs, respectively, for income from discontinued operations. Prior year 4th qtr and year oper net also excludes 19.2 mln dlrs and 20.3 mln dlrs, respectively, for operating loss carryforwards and other reogranization items. Prior year 4th qtr and year ended January 25, 1986.  
(MONTREAL CITY, DISTRICT SAVINGS BANK) 1ST QTR. Shr 33 cts vs 24 cts Net 6.2 mln vs 4.9 mln Loans not given Deposits not given Assets 3.8 billion vs not given Note: full name Montreal City and District Savings Bank Period ended January 31  
ASTEC INDUSTRIES INC <ASTE> 4TH QTR DEC 31. Shr loss nine cts vs profit 22 cts Net loss 278,949 vs profit 346,368 Revs 11.9 mln vs 10.4 mln Year Shr profit 49 cts vs profit 49 cts Net profit 1.2 mln vs profit 949,626 Revs 61.7 mln vs 52.7 mln NOTE:1985 net includes loss of three cts or 49.1 mln dlrs in 4th qtr and loss of 13 cts or 258,720 dlrs in year from discontinued operations.  
BANK OF BRITISH COLUMBIA 1ST QTR JAN 31 NET. Oper shr loss two cts vs profit three cts Oper net profit 273,000 dlrs vs profit 1,710,000 YEAR - period ended October 31, 1986 Oper shr loss 23 cts vs profit 14 cts Oper net loss 4,397,000 vs profit 7,527,000 Assets 2.67 billion vs 3.25 billion Note: 1987 1st qtr net excludes extraordinary loss of 2.2 mln dlrs or six cts shr. 1986 yr net excludes extraordinary loss of 66 mln dlrs or 1.94 dlrs shr involving 22.1 mln dlrs of costs from sale of bank assets to Hongkong Bank of Canada, eight mln dlrs for contingent liabilities in respect of litigation and potential tax reassessment by U.S. govt and 35.9 mln dlrs of deferred tax debits. Most bank assets sold to HongKong Bank of Canada, a unit of <Hong Kong and Shanghai Banking Corp> in Nov, 1986. Shr after preferred divs.  
RESTAURANT ASSOCIATES INC <RA> 4TH QTR JAN 3. Shr 25 cts vs 36 cts Net 1.4 mln vs 1.4 mln Revs 56.9 mln vs 35.1 mln Year Shr 86 cts vs 75 cts Net 4.7 mln vs 3.0 mln REvs 201.4 mln vs 140.0 mln NOTE:1985 4th qtr includes 99,000 loss from carryforward. Shares restated to give effect to 1.4 to one stock split in the form a 40 pct class A dividend in August 1985.  
MICHIGAN GENERAL CORP <MGL> 4TH QTR. Shr loss 1.02 dlrs vs 1.01 dlr Net loss 18.1 mln vs 11.4 mln Revs 96.0 mln vs 90.3 mln Year Shr loss 2.65 dlrs vs loss 3.06 dlrs Net loss 39.3 mln vs 34.6 mln Revs 386.0 mln vs 373.0 mln NOTE:1986 4th qtr, year loss includes 14.4 mln dlrs, 4.6 mln dlrs respectively from discontinued. 1985 4th qtr and year include loss of 13.1 mln, 1.9 mln dlr respectively.  
BANK OF B.C. REVISES SHARE PAYOUT ESTIMATE. Bank of British Columbia said it revised its estimate of shareholder distributions from last November's sale of most of the bank's assets to HongKong Bank of Canada to between 65 cts and 1.15 dlrs a share from 55 cts to 1.20 dlrs a share. The bank said the estimate could rise to between 1.30 dlrs and 1.80 dlrs a share if the full pension surplus is obtained. It said it did not know when distributions would be made. It earlier reported that operating profit for first quarter ended January 31 fell to 273,000 dlrs from 1.7 mln dlrs the previous year. For full-year 1986 ended October 31, the bank posted an operating loss of 4.4 mln dlrs against year-earlier profit of 7.5 mln dlrs. The bank also posted a 66 mln dlr extraordinary loss in fiscal 1986. Bank of British Columbia sold most of its assets last November to HongKong Bank Canada, a unit of <HongKong and Shanghai Banking Corp>, of Hong Kong, for 63.5 mln dlrs. It said efforts to wind up the bank's affairs were proceeding as quickly as possible. The bank said it expected to report positive earnings in future periods, barring unforeseen circumstances. Loan losses, which the bank previously said figured in its move to sell off most of its assets, rose to 105.7 mln dlrs in fiscal 1986 from year-earlier 36.1 mln dlrs. The bank said 31.1 mln dlrs of the 1986 total represented downward adjustments to its portfolio of syndicated sovereign risk loans as required under the sale to HongKong Bank. Since November 27, the bank has confined activities to the winding up of affairs, Bank of British Columbia said.  
<KIENA GOLD MINES LTD> 4TH QTR NET. Shr 17 cts vs 16 cts Net 1,019,000 vs 985,000 Revs 7,997,000 vs 7,492,000 YEAR Shr 1.18 dlrs vs 64 cts Net 6,959,000 vs 3,778,000 Revs 36.5 mln vs 29.8 mln  
KIENA PLANS TWO-FOR-ONE STOCK SPLIT. <Kiena Gold Mines Ltd> said it planned a two-for-one common stock split, pending shareholder approval on April 7. It said approval would require 66-2/3 pct of votes cast. Kiena said 57 pct-owner Campbell Red Lake Mines Ltd <CRK> was expected to vote in favor of the split.  
ROWE FURNITURE CORP <ROWE> SETS QTLY DIVIDEND. Qtly div four cts vs four cts prior Pay April 15 Record March 20  
EAGLE CLOTHES INC <EGL> 2nD QTR JAN 31. Shr profit 17 cts vs profit 14 cts Net profit 1.3 mln vs profit 901,000 Revs 36.9 mln vs 36.2 mln Six months Shr profit 18 cts vs loss 11 cts Net profit 1.4 mln vs loss 716,000 Revs 63.6 mln vs 57.7 mln NOTE:1986 six months includes increase in provision for doubtful accounts to 1.5 mln dlrs. 1986 shares give effect to issuance of 1.5 mln shares in exchange for outstanding Series 1 preferred shares.  
BOLIDEN  AB <BLDS ST> 1986 RESULTS. Group loss after financial income and expenses 1.08 Billion vs loss 71 mln crowns Sales - 12.38 billion crowns vs 6.16 billion. No proposed dividend vs 10 crowns. Note - The company this year consolidated wholesale and investment conglomerate Ahlsell AB.  
SAUDI BANKS FACE FURTHER LEAN PERIOD. Saudi Arabia's 11 commercial banks are reporting a further decline in profits for 1986 as increasing provisions have to be set aside to cover the burden of non- performing loans. Bankers in the Saudi capital said the need to build reserves for bad and doubtful debts may start to decline a little this year. But the kingdom's still sluggish economy and legal problems hampering traditional lending operations mean earnings will remain vulnerable. One senior bank credit officer said "The work is largely done in terms of identifying bad loans and making provisions, but banks are still going to face difficulties earning money." The sudden decline of Saudi Arabia's corporate sector in 1983 - culminating in a number of debt reschedulings - has taken a heavy toll of bank profits, with first results now appearing for 1986 showing a fourth successive year of broad decline. The cumulative net 1985 earnings of the kingdom's banks had sunk to 827.9 mln riyals from 2.66 billion in 1982 before world oil prices tumbled. Of the kingdom's nine joint-venture banks which operate on the Gregorian calendar year, four have already reported and revealed a further profits decline - or net loss - for 1986 at the expense of increased provisions. The newest and smallest of the joint ventures, <United Saudi Commercial Bank> (USCB) reported a 1986 net loss of 15.9 mln riyals, marginally less than 1985's shortfall of 17.0 mln. Profits before provisions were sharply higher, in part reflecting an 18 pct staff cut last year. But the bank nearly trebled the amount set aside against bad and doubtful loans to 60 mln riyals from 22 mln in 1985. Other results released so far show <Saudi American Bank> (SAMBA) reporting a 53.8 pct fall in 1986 net profit to 80.7 mln riyals, while <Al Bank Al Saudi Al Fransi>, known as Saudi French, slid 14 pct to 94.9 mln riyals. Both Saudi American, owned 40 pct by Citicorp's <CCI.N> Citibank NA and Saudi French, 40 pct owned by Banque Indosuez, increased provisions sharply. <Arab National Bank>'s net profit fell 17.8 pct to 152.1 mln riyals and provisions were more than doubled to 86.6 mln riyals. Bankers said there are first signs that the number of non- performing loans has stopped growing as the decline in the Saudi economy bottoms out. Few are willing to predict a sharp upturn in economic activity, but one banker said "The top 50 pct of the Saudi banks are now at or close to international levels on provisions." From 1982 to 1985, the kingdom's largest bank <National Commercial Bank> (NCB) stashed away 1.7 billion riyals in provisions or 8.9 pct of its total loans and advances to the private sector, bankers calculated. Between 1982 and 1985, <Riyad Bank>, NCB's rival as the second biggest of the two all-Saudi shareholding banks, had covered 12.8 pct of its loans and advances. Both banks operate on an Islamic year that does not coincide with the other nine. Although the Saudi Arabian Monetary Agency (SAMA) has been tightening supervision, there is still no standardised rule for declaring loans as non-performing. Bankers say this makes comparison of profit figures difficult because some banks still book non-accruing interest as revenue while others follow more conservative practices in force in major world financial centres. Bankers generally said NCB, Riyad Bank and the joint-ventures SAMBA, Saudi French and Arab National Bank rank as the strongest earners. Other banks such as <Saudi British Bank>, 40 pct owned by the <British Bank of the Middle East>, are disadvantaged by a relatively low deposit base. Saudi British slashed 1985 profit 91 pct to just 9.1 mln riyals and 1986 accounts due soon are expected to show another low figure. But the bank has traditionally been one of the most conservative in making provisions. Bankers said SAMA has proved it is not prepared to see a Saudi bank go under and not only supported <Saudi Cairo Bank> after its troubled 1985 accounts came to light but also made available cheap deposits to <Saudi Investment Bank> and USCB. The banks can on-lend these to generate profit, but generally banks are awash with liquidity since they are unwilling to risk incurring fresh non-performing loans. And while banks in more liberal financial markets can attempt to diversify away from traditional lending, conservatism in Saudi banking has made it difficult to generate fee income from new investment banking products. One banker said "Operating earnings in the Kingdom are not good." Reflecting the caution in new lending, the amount of advances is showing a declining trend, while the days when banks had ample funds in interest-free current accounts to invest are disappearing as Saudi customers seek a better return on their money. In 1979, the ratio of interest-bearing accounts to current accounts was 27 to 73 pct. Today, only about 40 pct of customer funds are held on current account.  
JAPANESE CORPORATE EARNINGS RECOVERY PREDICTED. Japanese corporate earnings will rise 8.9 pct in fiscal 1987/88 for the first year-on-year increase in three years, partly because of the yen's stable exchange rate, the Nomura research institute said. Sales of all industries are predicted to rise 1.9 pct in the year, which starts April 1, the research arm of Nomura Securities Co said in a statement. Recurrent profits were estimated to fall 20 pct in the current fiscal year with sales forecast to drop 14 pct. The forecast assumes an average rate of 148.5 yen to the dollar in 1987/88, compared with 160 yen in the current year. Corporate efforts to cope with the yen's appreciation, such as cutting production costs, are expected to bear fruit next fiscal year, the institute said. The economy should also benefit from pump-priming expected from the government and a halt in rising prices of manufactured goods, it said. Recurrent profits of manufacturing industries are projected to rise 29.6 pct next fiscal year against an estimated 40.1 pct fall in the current year. Non-manufacturing sector profits will decline 4.5 pct in 1987/88 against an estimated 2.2 pct rise in the current year, it said.  
BOLIDEN SAYS RESULTS BURDENED BY LOSS WRITEOFF. Swedish mining and metals group Boliden AB <BLDS ST> forecast a return to profitability during 1987 after recording a 1.08 billion crown 1986 loss burdened by a massive write-off. The company, which consolidated the Swedish wholesale and investment conglomerate <Ahlsell AB> this year, said the result included restructuring costs and write-offs of 802 mln crowns. "These costs have arisen as a results of a change of direction for the group. They are mainly one-off but they have burdened the annual accounts," the company said in a statement. Boliden said the company's liquid assets were 1.36 billion crowns at year-end which together with an investment portfolio of 1.60 billion made it one of the most liquid Swedish companies. As a result of the 1986 losses, the board proposed cancelling dividend for the year although it predicted a return to profitability during 1987, the statement added. Swedish tyres, process equipment and components firm <Trelleborg AB> has taken a majority stake in Boliden since the beginning of this year. Trelleborg then said it had no plans for consolidating Boliden.  
ROWNTREE REPORTS PRETAX PROFIT AT 84 MLN STG. Rowntree Mackintosh Plc <RWNT.L> announced it made a pretax profit of 84 mln stg in the 53 weeks ending January 3, 1987, compared with 79.3 mln stg in the previous year. Turnover was up to 1.29 billion stg from 1.2 billion. A final dividend of 9.2p was proposed, after a final 8.2p last year. Earnings per share rose to 35p from 34.8p. The results were broadly in line with market expectations, leaving shares at 499p in early trading, up one pence from yesterday's close, but slightly off pre-announcement opening levels. Profit on ordinary activities after tax was 66.2 mln stg, up from the previous year's 60.7 mln. The U.K. Remained Rowntree's largest centre for trading profits, accounting for 47.9 mln stg, up from 45.3 mln in 1985. Profit from its second largest geographical area, North America, slipped to 34.7 mln stg from 37.2 mln. North American profits were affected by the fall of the value of the dollar. Operations in continental Europe made 7.8 mln stg in trading profit, up from 3.4 mln, with 4.0 mln stg made in Australasia, up from 2.3 mln, and 11.3 mln stg from the rest of the world, against 13.1 mln in the previous year. Extraordinary items amounted to a 11.3 mln debit after a 16.5 mln debit previously. A company spokesman said this represented additional provisions for the cost of rationalisation plans announced in earlier years. Rowntree expects North American operations will this year, ahead of company expectations, be of the same order as those from the U.K. And the rest of Europe combined, the statement said. A spokesman said no specific figures had been forecast. Acquisitions will continue to be sought worldwide, including further moves in the speciality retailing business which Rowntree first entered in 1983, the statement said. Rising profit from Europe this year was forecast by chairman Kenneth Dixon in a statement. He added the performance of seven businesses bought last year was encouraging. The U.K. Confectionery side gained market share and increased trading margins. The Sun-Pat British grocery concern increased profit and Rowntree's small health food business, Holgates, raised earnings 10-fold, the statement said. Offsetting factors included currency movements, which cost the company nearly 5.0 mln stg. Sales tax hurt Canadian profits on confectionery operations, and the company faced strong competition in the U.K. Snack and Mid East export markets.  
JACOBS SUCHARD AG <JACZ.Z> 1986 YEAR. Net 190.9 mln Swiss francs vs 150.4 mln Turnover 5.24 billion vs 5.38 billion Dividend 160 per bearer vs 155 francs, 32 francs per registered vs 31 francs, 16 francs per participation certificate vs 15.50 francs Cash flow 294.3 mln vs 242.6 mln Note - Confirms forecast of results issued in January. Operating profit 337.6 mln vs 265 mln Depreciation 103.4 mln, up 12.2 pct Capital spending 84.6 mln, down 15.7 pct.  
British Telecom third quarter pre-tax profit 506 mln stg vs 452 mln.  British Telecom third quarter pre-tax profit 506 mln stg vs 452 mln  
BRITISH TELECOM 3RD QTR ENDED DEC 31. Shr 5.1p vs 4.2p, making 15.3p vs 12.7p for nine months. Pre-tax profit 506 mln stg vs 452 mln, making 1.51 billion stg vs 1.35 billion. Net profit before minorities 320 mln vs 268 mln, making 960 mln vs 807 mln. Note - Company's full name is British Telecommunications Plc <BTY.L>. Third quarter turnover 2.40 billion stg vs 2.11 billion, making 7.01 billion vs 6.16 billion for nine months. Operating profit 578 mln vs 520 mln, making 1.72 billion vs 1.56 billion. Net interest payable 72 mln vs 68 mln, making 208 mln vs 203 mln. Tax 186 mln vs 184 mln, making 552 mln vs 547 mln. Minorities nil vs nil, making two mln vs nil.  
ROWNTREE MACKINTOSH PLC<RWNT.L> YEAR TO END JANUARY. Shr 35.0p vs 34.8p Div final div 9.2p vs 8.2p Pretax profit 84.0 mln stg vs 79.3 mln Net after tax 66.2 mln vs 60.7 mln Turnover 1,290.4 mln vs 1,205.2 mln Trading profit 105.7 mln stg vs 101.3 mln, consisting - U.K  47.9 mln vs 45.3 Europe 7.8 mln vs 3.4 mln North America 34.7 mln vs 37.2 mln Australasia 4.0 mln vs 2.3 mln Rest of world 11.3 mln vs 13.1 mln  
GLYNWED INTERNATIONAL PLC <GLYN.L> 1986 YEAR. Shr, net basis 27.47p vs 22.15p Div 6.5p vs 5.4p making 10.1p vs 8.4p Pretax profit 46.1 mln stg vs 35.6 mln Net after tax 30 mln vs 23.3 mln Extraordinary items debit 3.8 mln vs debit 2.3 mln Interest payable 2.7 mln vs 4.0 mln Net borrowings 7.6 mln vs 16.1 mln Turnover 478.9 mln vs 464.1 mln  
GLYNWED SEES FURTHER PROGRESS IN 1987. Glynwed International Plc <GLYN.L> in a statement accompanying their results that present indications are that 1987 has started well and it is confident that the year will be one of further progress. The company added that results in the U.S. Were poor and the deterioration in the South African economy left its Falkirk Industries unit with a loss of one mln stg. But it said there was a continuing improvement in its core businesses. The extraordinary items debit of 3.8 mln stg arose on the closure and disposal of various businesses.  
BRITISH TELECOM SEES SATISFACTORY 1986/87 RESULTS. British Telecommunications Plc <BTY.L> expects to announce satisfactory results for its 1986/87 financial year ending March, chairman Sir George Jefferson said in a third quarter statement. Full year results will be published in June. In the 1985/86 financial year, pre-tax profit rose to 1.81 billion stg from 1.48 billion in the previous period. Jefferson said good progress was made in the latest nine months, while most customers were able to maintain their normal level of calls during the recent strike by company engineers. The statement said a positive cash flow of 381 mln stg for the first nine months will diminish in the final quarter due to corporation tax and dividend payments. Earlier, the company reported third quarter pre-tax profit for the period ended December 31 of 506 mln stg compared with 452 mln a year earlier. Nine month pre-tax was 1.51 billion stg against 1.35 billion. British Telecom shares were last quoted at 246-1/2p, level with late yesterday, in the wake of results which were in line with market expectations, dealers said.  
<NEXT PLC> <NEXL.L> FIVE MONTHS TO END JANUARY. Shr 7.67p vs 5.34p Div 1.5p vs 1.08p Pretax profit 30.12 mln stg vs 12.40 mln Net interest payable 2.55 mln vs 200 stg Net after tax 19.58 vs 7.44 mln Turnover excluding VAT 257.66 mln vs 74.09 mln Note - The company said it intends to issue a second interim statement for the six months to July 1987 and to pay a related dividend in early 1988.  
STE LYONNAISE DES EAUX <LYOE.PA> YEAR ENDED DEC 31. Consolidated attributable net 1986 profit 360 mln francs vs 279.8 mln. Parent company net profit 191 mln vs 150.9 mln.  
LYONNAISE DES EAUX FORECASTS 1987 PROFIT RISE. Consolidated attributable net profit of Ste Lyonnaise des Eaux <LYOE.PA> is likely to rise by at least 10 pct this year from the 360 mln francs reported for 1986, Chairman Jerome Monod told a news conference. Group turnover should rise about seven pct from the 15.7 mln reported for this year, while group investments should total around 1.8 billion francs, somewhat above the 1.3 billion annual average of the past three years, he added. Investments will be aimed mainly at developing the group's leisure industry, health and communications activities, Monod said. In the leisure sector the group planned a joint development with Club Mediterranee <CMI.PA>, Club Med, of a 200 hectare pleasure park at Puisaye in the Yonne department of Eastern Central France, he said. Wholly-owned subsidiary Lyonnaise de Developpement Touristique would carry out the construction work and financial planning of the development which would be leased to Club Med as operator of the complex, he said. He gave no financial details but said leisure sector investments would total about 100 mln francs over the next three years. Investments in the communications industry would go mainly to develop the group's cable television activities and its 25 pct owned Metropole Television affiliate. Metropole recently won the concession to operate a sixth television channel in France. Financing requirement of Metropole would be about 700 mln francs over the next four years, of which Lyonaise des Eaux would provide about 175 mln, Monod said. Monod said Metropole aimed to win a 15 to 20 pct audience share and to capture about 10 pct of the national television advertising market. Total investment by the group in the communications sector, including cable activities, would be between 300 mln and 400 mln francs over the next five years, mainly concentrated in the coming year. Investment in cable operations would total between 150 mln and 200 mln over the five years, with the aim of widening the audience to 280,000 subscribers from 12,000, and boosting turnover to around 450 mln francs a year from 10 mln.  
<BOND CORP INTERNATIONAL LTD> NINE MOS TO DEC 31. Shr loss 17.4 H.K. Cents (no comparison) Dividend nil (no comparison) Net loss 11.49 mln dlrs. Notes - Net excluded extraordinary losses 27.91 mln dlrs. Property valuation reserve surplus 67 mln dlrs. Results reflected trading in subsidiary <Humphreys Estate Group> but excluded influence of a bulk of properties which the firm bought late last year from Hongkong Land Co Ltd <HKLD.HK> for 1.4 billion dlrs. Company controlled by Bond Corp Holdings Ltd of Australia.  
KIDSTON SAYS HIGHER NET REFLECTS GOLD SALE RISE. <Kidston Gold Mines Ltd> attributed the rise in 1986 net profit to higher prices and an increase in gold sales to 237,969 ounces from 206,467 ounces in 1985. The <Placer Development Ltd> offshoot, which operates Australia's largest gold mine, in North Queensland, earlier reported net profit rose to 60.50 mln dlrs from 50.76 mln in the 1985 period of 10 months from the start of production. Sales of silver also rose to 165,968 ounces from 109,516. Kidston said in a statement it will spend about 5.5 mln dlrs to upgrade its mill grinding circuit to a mill-ball, mill-crushing circuit to boost output by 25 pct from end-1987.  
<KIDSTON GOLD MINES LTD> 1986 YEAR. Shr 48.4 cents vs 40.6 Yr div 37 cents vs 15 Net 60.50 mln dlrs vs 50.76 mln Turnover 134.54 mln vs 100.63 mln Other income 1.02 mln vs 920,000 Shrs 125 mln vs same. NOTE - Company paid total 37 cents in previously declared quarterly divs vs 15. Net is after tax 173,000 dlrs vs 285,000, interest 9.67 mln vs 8.05 mln and depreciation 11.76 mln vs 9.59 mln.  
JACOBS SUCHARD EXPECTS ANOTHER EXCELLENT YEAR. Jacobs Suchard AG <JACZ.Z> hopes for another excellent year in 1987 after a 27 pct increase in 1986 net profit. Results in the first few months show it heading in the right direction, company president Klaus Jacobs said. The group reported 1986 net profit of 190.9 mln Swiss francs compared with 150.4 mln in 1985 and raised its dividend per bearer share to 160 francs from 155 francs. Jacobs said the increase in profit, which far exceeded the company's target of five pct real annual growth, had been made possible by restructuring measures introduced in January 1986 which had also made some major acquisitions possible last year. Hermann Pohl, general director in charge of economic affairs, said the 2.7 pct decline in group turnover to 5.24 billion francs was due to currency factors. A 5.2 pct negative currency influence was partially offset by growth in operations and by structural changes within the group. Turnover in the coffee business fell to 3.10 billion francs from 3.56 billion in 1985 while turnover in the chocolate sector rose to 2.14 billion francs from 1.82 billion. The tonnage sold in both sectors declined due to higher prices and lower consumer demand, especially in France and West Germany. Jacobs Suchard increased its market share in West Germany to 44.9 pct from 39.9 pct in 1985, largely as a result of acquisitions. Market share in France was little changed at 25 pct against 25.3 pct. Pohl said the group's average tax rate rose to 32.5 pct from 28.8 pct because of the higher profits and despite write-offs on the losses of new acquisitions. A further increase in tax levels was expected in future. Taxes jumped 51.3 pct to 92 mln francs in 1986 from 61 mln the previous year.  
BEL FUSE INC <BELF> 4TH QTR NET. Shr 22 cts vs 13 cts Net 1,063,000 vs 639,000 Sales 7,489,000 vs 4,656,000 Year Shr 55 cts vs 28 cts Net 2,633,000 vs 1,343,000 Sales 23.3 mln vs 17.9 mln  
SOUTHWEST REALTY <SWL> YEAR LOSS. Shr loss 44 cts vs profit 1.13 dlrs Net loss 1,544,000 vs profit 3,912,000 NOTE: Cash flow 1,010,000 dlrs or 29 cts shr vs 2,835,000 dlrs or 82 cts shr.  
SOUTHWEST REALTY <SWL> HAS LIQUIDITY PROBLEMS. Southwest Realty Ltd said it believes it could make all of its scheduled montly debt service payments for 1987 despite the falloff in its rental operations, but making the payments would probably severely impair its liquidity and restrict its ability to maintain the quality of its properties. The company today reported a 1986 loss of 1,544,000 dlrs compared with a 1985 profit of 3,912,000 dlrs. Southwest said in addition to its monthly scheduyled debt service payments, a 1,743,000 dlr loan on one of its Houston properties is due to mature on April One. Southwest said a commitment to reduce the interest rate and extend the Houston loan for one year has been accepted. It said talks are underway with lenders on other Houston properties to obtain partial debt service moratoriums which, if granted, would cut 1987 cash deficits from 1986 levels.  The loan renegotiations could involve bankruptcy or other litigation connected with the specific properties involved and could involve the suspension of interest and principal payments to some of the lenders.  Southwest said if the attempts to restructure debt do not succeed, it could lose one or more of the properties. Southwest said the Houston properties made up about 10 pct of its current value equity as of December 31 of 14.20 dlrs per share, down from 16.68 dlrs a year before. The company said depending on the success of the talks and operating results for 1987, one or two more properties could become subject to similar negotiations.  The two additional properties comprised about 11 pct of its current value equity at year-end, Southwest said.  
D.H. HOLMES CO LTD <HLME> SETS PAYOUT. Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April One Record March 20  
GENERAL MINING UNION CORP LTD (GENM.J) YEAR NET. Shr 616 cts vs 481 Final div 150 cts vs 140, making 230 vs 195 Pre-tax 705.4 mln rand vs 485.2 mln Net 591.7 mln vs 458.0 mln Tax 79.2 mln vs 82.2 mln Attrib to outside shareholders 123.7 mln vs 52.3 mln  
HARPER GROUP <HARG> 4TH QTR NET. Shr 24 cts vs 31 cts Net 2,245,000 vs 2,885,000 Revs 50.7 mln vs 46.5 mln Avg shrs 9,396,000 vs 9,270,000 Year Oper shr 96 cts vs 99 cts Oper net 8,994,000 vs 9,220,000 Revs 191.5 mln vs 174.7 mln Avg shrs 9,394,000 vs 9,282,000 NOTE: 1985 year net excludes 1,360,000 dlr loss from discontinued operations. Share adjusted for three-for-two stock split.  
HEALTHSOUTH REHABILITATION CORP <HSRC> 4TH QTR. Shr profit eight cts vs loss 10 cts Net profit 622,000 vs loss 564,000 Revs 7,508,000 vs 1,913,000 Year Shr profit 15 cts vs loss 28 cts Net profit 933,000 vs loss 1,548,000 Revs 19.8 mln vs 4,799,000  
SAND TECHNOLOGY <SNDCF> MULLING REVERSE SPLIT. Sand Technology Systems Inc said it is considering a reverse stock split of at least one-for-10 and expects to report a second-quarter profit, compared to a loss last year. The stock consolidation "is something we're discussing, but it's not definite," Sand Technology president Jerry Shattner told Reuters in an interview. A private placement recently brought the number of outstanding shares to 106 mln, up from 97.1 mln shares on July 31, 1986, the fiscal yearend. "The company has always had the aura of a penny stock," Shattner said, adding that Sand plans, at some time, to apply for listing on the Montreal Stock Exchange. Shattner said the company expects to report a profit of five pct, or about 350,000 dlrs, on sales of seven mln dlrs, for the second quarter ended January 31. Results for the third quarter should be about the same as the second, he added. Last year, Sand lost 243,064 dlrs on revenues of 7,012,195 dlrs in the second quarter. After "a disastrous first quarter," Sand hopes to break even in the current fiscal year, Shattner said. The company has scaled back its sales forecast to about 25 mln dlrs, from the 33.5 mln dlrs projected in December. The rapid appreciation of the Japanese yen against U.S. and Canadian dollars last year led to Sand's loss of 2.1 mln dlrs, or two cts per share, on sales of 24.9 mln dlrs. In the first fiscal quarter this year, the company lost 1,350,387 dlrs, or one ct per share, on sales of 3,570,585 dlrs. Shattner believes the company will post better results this year due to several factors. "Last year, one of our biggest problems was we were buying products in Japanese yen. We now buy some products from Hitachi in U.S. dollars and the results are starting to show up in the second quarter," he said. Sand Technology sells, under its trademark, computer accessories such as disk drives, solid-state memory enhancement devices and printers manufactured by Hitachi Ltd <HIT> of Japan. Shattner said Sand's affiliate in Detroit, ST Systems Inc, is developing software that lets large maniframe computers handle large databases and share them between applications. It is also distributing a new product called Sapiens, which is artificial intelligence computer language for use by major corporations. The company has also reduced costs through some staff cutting and a switch to profit sharing plans for sales staff instead of straight commissions, Shattner said. And Sand plans to market a laser printer in the fourth fiscal quarter, Shattner said.  
CORRECTED-NETWORK VIDEO INC <NVID> 3RD QTR. Feb 28 end Shr five cts vs one ct Net 161,019 vs 50,745 Revs 1,048,543 vs 478,700 Avg shrs 3,217,500 vs 4,350,000 Nine mths Shr 12 cts vs four cts Net 390,179 vs 169,275 Revs 2,658,692 vs 1,478,066 Avg shrs 3,217,500 vs 4,350,000 NOTE: Corrects reversed figures in March 11 item.  
POSSIS <POSS> VOTES 100 PCT STOCK DIVIDEND. Possis Corp said its board approved a 100 pct stock dividend payable May One, record March 27. At the company's annual meeting Wednesday, Possis said shareholders approved a proposal to increase the authorized common shares to 20 mln from eight mln. The company currently has about 3.9 mln shares outstanding.  
SEAL INC <SINC> 1ST QTR JAN 31 NET. Shr 29 cts vs 16 cts Net 610,000 vs 329,000 Sales 6,714,000 vs 4,582,000  
DOW CHEMICAL CO <DOW> REGULAR DIVIDEND. Qtly div 50 cts vs 50 cts prior Pay April 30 Record March 31  
TELCO <TELC> DELAYS DEFENSIVE RIGHTS OFFERING. Telco Systems Inc said its plan to distribute a dividend of common stock purchase rights to shareholders of record on March 16 has been delayed pending the completion of necessary regulatory approvals.  
U.S. HEALTH INC <USHI> 2ND QTR JAN 31 NET. Shr 10 cts vs seven cts Net 1,541,000 vs 1,056,000 Revs 20.1 mln vs 17.0 mln 1st half Shr 19 cts vs 11 cts Net 2,945,000 vs 1,742,000 Revs 38.2 mln vs 35.2 mln  
K MART CORP 4TH QTR  SHR 2.11 DLRS VS NINE CTS.  K MART CORP 4TH QTR  SHR 2.11 DLRS VS NINE CTS  
ENVIRONMENTAL SYSTEMS CO <ESC> 1ST QTR JAN 31. Shr 13 cts vs 15 cts Net 2,193,000 vs 1,918,000 Revs 18.2 mln vs 15.2 mln NOTE: Share after preferred dividends.  
GENERAL MINING (GENM.J) CAUTIONS ON 1987 PROFITS. General Mining Union Corp Ltd chairman Derek Keys cautioned that profits may not rise this year if the rand stays at its current level of 48 U.S. Cents. "We would do well to repeat last year's results if the rand stays depressed," Keys said. The level of the dividend, however, "ought not to be affected," he added, discussing the 1987 outlook. General Mining earlier reported that 1986 per share earnings rose 28 pct to 616 cts.  
COLGATE-PALMOLIVE CO <CL> SETS PAYOUT. Qtrly div 34 cts vs 34 cts Pay May 15 Record April 24  
ISCO INC <ISKO> 2ND QTR ENDS JAN 30 NET. Shr 12 cts vs 13 cts Net 414,968 vs 449,533 Revs 5,726,722 vs 5,276,627 Six mths Shr 23 cts vs 33 cts Net 779,981 vs 1,116,857 Revs 11.3 mln vs 11.3 mln  
K MART CORP <KM> 4TH QTR JAN 28 NET. Shr 2.11 dlrs vs nine cts Net 285,000,000 vs 10,500,000 Revs 7.35 billion vs 6.76 billion Avg shrs 134,300,000 vs 131,600,000 Year Shr 4.35 dlrs vs 1.73 dlrs Net 582,300,000 vs 221,200,000 Revs 24.13 billion vs 22.33 billion Avg shrs 134,300,000 vs 131,600,000 NOTE: Latest year earnings include a loss in each period of 16.4 mln dlrs, or 12 cts a share, for a premium paid in the early call of a 250 mln dlr 12.75 pct 30-year debenture Earnings include a gain from discontinued operations of 30.8 mln dlrs, or 23 cts a share vs a loss of 238.9 mln dlrs, or 1.82 dlrs a share in the quarter and a gain of 28.4 mln dlrs, or 21 cts a share vs a gain of 472.0 mln dlrs, or 3.64 dlrs a share for the year  
DORCHESTER HUGOTON LTD <DHULZ> RAISES PAYOUT. Qtly div 10 cts vs eight cts prior Pay April 16 Record March 31  
PRECISION AEROTECH INC <PAR> 3RD QTR JAN 31 NET. Oper shr 16 cts vs two cts Oper net 467,000 vs 52,000 Sales 8,954,000 vs 6,338,000 Avg shrs 2,939,459 vs 1,979,916 Nine mths Oper shr 45 cts vs 18 cts Oper net 1,068,000 vs 387,000 Sales 24.5 mln vs 19.6 mln Avg shrs 2,299,764 vs 1,979,916 NOTE: Current year net both periods excludes 176,000 dlr gain from retirement of notes. Backlog 30.8 mln vs 26.7 mln at start of fiscal year.  
GUARDIAN NATIONAL INSURANCE CO LTD <GARJ J> YEAR. Shr 100.6 cts vs 76.9 cts Final div 40 cts vs 32 making 58 cts vs 50 Pre-tax 14.17 mln rand vs 8.85 mln Net 10.06 mln vs 7.69 mln Tax 4.10 mln vs 1.16 mln Gross premiums 210.16 mln vs 178.69 mln Net premiums written 143.99 mln vs 123.88 mln Underwriting loss 1.78 mln vs loss 6.25 mln Div pay April 10, register March 27. Note - period year to December 31 1986.  
DATAMETRICS CORP <DMCZ> 1ST QTR JAN 31 NET. Shr diluted five cts vs 13 cts Net 278,780 vs 442,532 Revs 5,101,747 vs 4,293,393 Avg shrs diluted 6,050,968 vs 3,414,145 NOTE: Net includes tax credits of 123,500 dlrs vs 179,000 dlrs.  
WIENER ENTERPRISES INC <WPB> YEAR JAN 31 NET. Shr 60 cts vs 85 cts Qtly div 10 cts vs 10 cts prior Net 1,407,000 vs 1,996,000 Sales 75.4 mln vs 58.2 mln NOTE: Dividend pay April 16, record April Nine  
K MART <KM> SAYS RECORD 1986 NET "TURNING POINT". K Mart Corp said its record fiscal 1986 net earnings of 582.3 mln dlrs, a rise from 221.2 mln dlrs a year ago, marked a "major turning point" for the world's second biggest retailer. K Mart said the earnings rise for the fourth quarter ended January 28 to 285 mln dlrs from 10.5 mln dlrs resulted from "merchandising, refurbishing and expense control." A year ago, K Mart took a charge of 239 mln dlrs for discontinued operations. Earnings from continuing retail operations in the quarter totalled 270 mln dlrs or 2.00 dlrs a share compared with 249.4 mln dlrs or 1.91 dlrs a year ago. K Mart Chairman Bernard Fauber said "the success of these programs is better illustrated by the strong 35.9 pct increase in 1986 income from continuing operations before income taxes to 1.03 billion dlrs, the first time K Mart Corp has reached this milestone." Sales for the 1986 fiscal year reached a record 23.8 billion dlrs, an 8.1 pct rise from 22.04 billion dlrs the prior year. K Mart said 1985 was restated to account for discontinued operations. Comparable store sales rose 5.5 pct in 1986 over 1985, it said. Fauber said the sales growth came from greater consumer acceptance of K Mart's apparel merchandise, "a marked increase in hardline merchandise sales and a growing contribution from specialty retailing operations." K Mart said its fourth quarter pre-tax income from continuing operations was 493 mln dlrs, a 32.3 pct gain from 372.6 mln dlrs last year. It said sales in the period grew 8.8 pct to 7.23 billion dlrs from a restated 6.65 billion dlrs in 1985 with comparable store sales up 4.7 pct. K Mart said its effective tax rate rose in 1986 to 44.6 pct from 37.6 pct in 1985. But it said selling, general and administrative expense eased to 23.2 pct of sales from 23.7 pct in 1985. "Our performance in 1986 marks a major turning point for K Mart," Fauber said in a statement. "In the years immediately prior to 1986, we focused on changing the look of our stores and the structure of the company." K Mart, he said, committed billion of dollars for store remodeling and installing a centralized point of sale system, upgraded its merchandise mix, acquired three large specialty retailers, divested underperforming businesses and restructured its long-term debt. "We were forced to pay a temporary price in the form of slower earnings growth and a lower rating by the investment community. However, beginning with the fourth quarter of 1985, our improved performance is proof that our approach is correct for the long term," the K Mart chairman said.  
CIRCUIT CITY STORES INC <CC> SETS QUARTERLY. Qtly div 1-1/2 cts vs 1-1/2 cts prior Pay April 15 Record March 30  
CORRECTED-INSITUFORM OF NORTH AMERICA INC<INSUA>. 4th qtr Shr nine cts vs four cts Net 658,159 vs 299,930 Revs 3,770,341 vs 2,614,224 Avg shrs 7,382,802 vs 6,747,442 Year Oper shr 33 cts vs 18 cts Oper net 2,287,179 vs 1,045,799 Revs 13.1 mln vs 8,577,853 Avg shrs 6,874,505 vs 5,951,612 NOTE: 1985 year net excludes 13,000 dlr tax credit. Corrects March 11 item to exclude tax credit  
COLGATE-PALMOLIVE CO <CL> SETS QUARTERLY. Qtly div 34 cts vs 34 cts prior Pay May 15 Record April 24  
CO-OPERATIVE BANCORP <COBK> RAISES QUARTERLY. Qtly div 12-1/2 cts vs 10 cts prior Pay April 15 Record March 31  
WILCOX AND GIBBS INC <WG> SETS PAYOUT. Semi div 7-1/2 cts vs 7-1/2 cts prior Pay April 30 Record March 31  
FEDERAL REALTY INVESTMENT TRUST <FRT> IN PAYOUT. Qtly div 27 cts vs 27 cts prior Pay April 15 Record March 25  
BEAUTICONTROL COSMETICS INC <BUTI> 1ST QTR NET. Qtr ends Feb 28 Shr 10 cts vs 17 cts Net 411,275 vs 584,118 Revs 4,977,818 vs 4,714,581  
OLD DOMINION SYSTEMS INC <ODSI> 1ST QTR JAN 31. Shr loss 11 cts vs profit five cts Net loss 279,726 vs profit 76,591 Revs 1,300,000 vs 2,200,000  
FIDELITY NATIONAL FINANCIAL INC <FNF> 1ST QTR. Jan 31 end Shr profit 49 cts vs loss not given Net profit 1,360,000 vs loss 241,000 Revs 20.8 mln vs 14.3 mln Avg shrs 2,760,000 vs 1,970,000  
BRITISH TELECOM CAUTIOUS ON EARNINGS PROSPECTS. British Telecommunications Plc's <BTY.L> profit growth prospects for the coming years will be reduced by increasing competition and continued costs for replacing old telephone systems, deputy chairman Graeme Odgers said. Speaking at a news conference on the third quarter results which were released earlier today, Odgers said the company faced heavy costs for installing new digital telephone systems in Britain for three to five years. He said <Mercury Communications Ltd>, a Cable and Wireless Plc <CAWL.L> subsidiary, was becoming a significant competitor. Odgers said Mercury was seeking to make inroads into some of British Telecom's most profitable areas. One company official privately estimated that British Telecom still had a 99 pct share of the U.K. Telecommunications market but feared that this could slip to 95 or 90 pct. The recent two-and-a-half-week engineering strike, which lead to some disruption in service, could well have encouraged clients to consider using the Mercury system, Odgers said. However, he forecast that the last quarter's results overall should not be adversely affected by the walkout. He calculated salary savings as a result of the strike at 50 mln stg and while loss of income on telephone calls should be limited revenue probably dropped on peripheral activities. But on balance Odgers said that group's financial strength, economies of scale and the fact that it operates in a growth industry will help produce annual profit increases for the forseeable future. British Telecom will also seek to expand into manufacturing, he said, adding that research and development expenditure will rise both in terms of value and compared with the current proportion of two pct of overall turnover. Analysts said the company's downbeat forecasts helped shares dip to 242p in mid-afternoon, down 4p from yesterday's close and off an early high of 248p. Philip Augar of stockbrokers Wood Mackenzie and Co Ltd said the market expects slower profit growth, but forecast a seven to eight pct rise in both earnings per share and pretax profit over the next two years. In the 1985/86 financial year, pre-tax profit rose to 1.81 billion stg from 1.48 billion. Augar noted that a government-imposed formula linking charges to inflation meant that the company's scope for raising prices was limited as long as inflation remains low.  
TENNEY ENGINEERING INC <TNY> 4TH QTR NET. Shr two cts vs nine cts Net 86,469 vs 325,937 Revs 5,119,637 vs 6,390,995 12 mths Shr 10 cts vs 33 cts Net 354,820 vs 1,148,476 Revs 21.2 mln vs 23.2 mln  
MODERN CONTROLS INC <MOCON> 4TH QTR NET. Shr 10 cts vs 11 cts Net 226,000 vs 236,000 Sales 1.3 mln vs 1.5 mln Year Shr 38 cts vs 45 cts Net 819,000 vs 1,001,000 Sales 5.8 mln vs 6.4 mln  
DAYTON HUDSON CORP 4TH QTR OPER SHR 1.24 DLRS VS 1.55 DLRS.  DAYTON HUDSON CORP 4TH QTR OPER SHR 1.24 DLRS VS 1.55 DLRS  
PETRIE STORES CORP <PST> REGULAR PAYOUT. Qtrly div 17.5 cts vs 17.5 cts prior Pay April 20 Record April 2  
UNILEVER FRAGRANCE UNIT HAS LOWER 1986 EARNINGS. The flavours and fragrances firm <Naarden International N.V.>, acquired by Anglo-Dutch food and detergents group Unilever Plc N.V. <UN.AS> last year, said net profits for 1986 fell 11.4 pct to 19.5 mln guilders. Naarden said earnings were hit by the fall in the value of both the dollar and sterling, noting the figure was in line with prior expectations. Net profit was 22.0 mln guilders in 1985. Earnings per share fell to 4.64 guilders from 5.48 in 1985 on turnover of 627.8 mln, down from 662.6 mln. Naarden set a cash dividend of 1.80 guilders, unchanged from last year but without last year's share option for payment.  
EAGLE-PITCHER INDUSTRIES INC <EPI> 1ST QTR NET. Shr 81 cts vs 81 cts Net 8,750,024 vs 7,772,932 Revs 157.6 mln vs 162.4 mln Avg shrs 10.8 mln vs 9.6 mln  
RPT-INSITUFORM OF NORTH AMERICA INC <INSUA> NET. 4th qtr Shr nine cts vs four cts Net 658,159 vs 299,930 Revs 3,770,341 vs 2,614,224 Avg shrs 7,382,802 vs 6,747,442 Year Oper shr 33 cts vs 18 cts Oper net 2,287,179 vs 1,045,799 Revs 13.1 mln vs 8,577,853 Avg shrs 6,874,505 vs 5,951,612 NOTE: 1985 year net excludes 131,000 dlr tax credit.  
ASA LTD <ASA> 1ST QTR FEB 28 NET. Shr 1.42 dlrs vs 1.61 dlrs Net 13.6 mln vs 15.5 mln NOTE: Net asset value per share 77.72 dlrs vs 54.35 dlrs.  
DAYTON HUDSON CORP<DH> 4TH QTR JAN 31 OPER NET. Oper shr 1.24 dlrs vs 1.55 dlrs Oper net 120,800,000 vs 150,100,000 Revs 3.12 billion vs 2.74 billion Year Oper shr 2.62 dlrs vs 2.89 dlrs Oper net 255,000,000 vs 280,500,000 Revs 9.26 billion vs 8.26 billion NOTE: 1986 period ended February One NOTE: Results exclude earnings from discontinued operations of 9.0 mln dlrs, or nine cts a share vs 3.2 mln dlrs, or three cts a share in the quarter and 2.1 mln dlrs, or two cts a share vs 3.1 mln dlrs, or three cts a share for the year 1987 earnings exclude gain on sale of B. Dalton Bookseller of 85.2 mln dlrs, or 88 cts a share in each period 1987 earnings exclude extraordinary charge from purchase and redemption of debt of 12.6 mln dlrs, or 13 cts a share in the quarter and 32.3 mln dlrs, or 33 cts a share for the year  
VSE CORP <VSEC> 4TH QTR NET. Shr 49 cts vs 39 cts Net 886,937 vs 892,323 Revs 25.9 mln vs 23.7 mln Year Shr 1.78 dlr vs 1.34 dlr Net 3,254,301 vs 2,472,676 Revs 100.6 mln vs 87.4 mln NOTE: 1986 4th qtr and year net includes income loss of MetCap subsidiary of 14,881 dlrs and 311,848 dlrs or 17 cts per share, respectively. 1985 4th qtr and year net includes loss in MetCap unit of 108,598 dlrs and 298,412 dlrs or 16 cts per share, respectively.  
DRANETZ TECHNOLOGIES INC <DRAN> YEAR DEC 31 NET. Shr 46 cts vs 77 cts Qtly div six cts vs six cts prior Net 2,198,469 vs 3,635,565 Revs 23.1 mln vs 26.0 mln Note: 1986 net includes one-time charge of 249,000 dlrs or five cts a share from discontinuation of Boat Sentry and Lakontek products. Qtly div payable April 15 to shareholders of record March 24.  
LANDS END INC <LEYS> YEAR JAN 31 NET. Shr 1.46 dlrs vs 1.13 dlrs Net 14,650,000 vs 11,270,000 Sales 265 mln vs 227.1 mln Avg shrs 10,020,000 vs 9,980,000 Note: Earnings are pro forma, including the increase in common shares that took place last October when the company went public through an initial offering of 1.4 mln shares. Avg shrs assume the shares sold to public and employees were outstanding during the entire period.  
SEABOARD CORP <SEB> 31 WEEK YEAR NET. Shr 14.63 dlrs Net 21.8 mln Revs 252.9 mln NOTE: Company changed its reporting period to Dec 31 from May 31. It said prior year comparisons were thus not applicable.  
REUTER INC <REUT> 4TH QTR. Shr 67 cts vs six cts Net 1.6 mln vs 131,630 Revs 6.5 mln vs 4.5 mln Year Shr 85 cts vs 19 cts Net 2.0 mln vs 427,749 Revs 25.1 mln vs 17.4 mln NOTE: 1986 net includes 1.4 mln dlrs in tax loss carryback. Reuter Inc is a spindle maker. It is not connected with Reuters Holdings PLC.  
CENTEL CORP <CNT> REGULAR PAYOUT SET. Qtly div 62-1/2 cts vs 62-1/2 cts previously Pay April 30 Record April Seven  
EQUITY OIL CO <EQTY> 4TH QTR LOSS. Shr loss nine cts vs profit 11 cts Net loss 1,102,592 vs profit 1,364,763 Revs 2,836,508 vs 5,547,121 Year Shr loss six cts vs profit 32 cts Net loss 789,300 vs profit 3,953,822 Revs 11.7 mln vs 21.1 mln NOTE:  Per share figures reflect five pct stock dividend paid December 1986.  
FN RESULTS HIT BY STRIKES, DOLLAR IN 1986. Fabrique Nationale Herstal SA <FNHB.BR> said it suffered a net loss of 2.99 billion francs last year after being hit by strikes, the falling dollar and declining oil prices. An FN statement said the loss, which compared with a 6.8 mln franc profit the previous year, included considerable charges for restructuring in 1986 and 1987. Without these the net loss would have been 1.45 billion francs, it said. It added that the restructuring plan would allow the firm to return to long term profitability once it had been approved by local authorities, banks and the workforce.  
<GEMINI FOOD CORP> SIX MTHS JANUARY 31 NET. Shr profit one ct vs loss one ct Net profit 150,594 vs loss 55,352 Revs 19.0 mln vs 12.4 mln  
LINCOLN NATIONAL CORP <LNC> VOTES DIVIDEND. Qtly div 54 cts vs 54 cts prior qtr Pay 1 May Record 10 April  
LVI GROUP INC <LVI> 4TH QTR NET. Oper shr profit two cts vs loss 19 cts Oper net profit 523,000 vs loss 2.2 mln Revs 102.5 mln vs 39.9 mln 12 mths Oper shr profit 11 cts vs loss 29 cts Oper net profit 2.2 mln vs loss 2.9 mln Revs 304.4 mln vs 50.3 mln NOTE: All 1986 and last two months of 1985 include results of NICO Inc acquired Oct 1985. Prior year excludes discontinued operations loss of 14 cts per share in the quarter and loss 18 cts a share in the year. 1986 excludes extraordinary gain of two cts per share in the quarter and four cts per share in the year.  
PROTOCOMDEVICES <PRCM> SEES MORE PROFIT EROSION. ProtocomDevices Inc said it has seen more erosion of its general financial condition since December 31, and is actively engaged in negotiations to secure additional financing. It also said it has undergone a restructuring of its management and is instituting further staff reductions. It said Ramon Morales has relinquished his role as president and chief operating officer and assumed the position of executive vice president in charge of international sales. It also said Rafael Collado has assumed the positions of president and chief operating officer in addition to his role as chief executive officer. For the year ended January 31, 1986, the company had a net loss of 51,000 dlrs or 24 cts a share on revenues of 2.8 mln dlrs.  
PARADISE FRUIT CO INC <PARF> YEAR NET. Shr 86 cts vs 99 cts Net 435,610 vs 497,160 Sales 16.6 mln vs 17.7 mln NOTE: 1986 year net penalized 13 cts shr from loss of investment tax credits.  
SAMSON ENERGY CO LIMITED PARTNERSHIP <SAM> YEAR. Net loss 14,144,000 vs loss 863,000 Revs 10.3 mln vs 16.7 mln NOTES: 1986 loss includes write-down of 15.1 mln dlrs in the carrying value of oil and gas properties taken in the first quarter Cash flow from operationswas 6,237,000 dlrs, or 3.01 dlrs per unit, vs 9,315,000 dlrs, or 4.56 dlrs per unit  
ACCELERATION CORP <ACLE> 4TH QTR. Shr 22 cts vs 19 cts Net 1.1 mln vs 994,000 Year Shr 83 cts vs 60 cts Net 4.3 mln vs 3.1 mln NOTE:1985 net includes tax loss carryforward gain of 8,000 dlrs.  
<ENERGY OPTICS INC> 2ND QTR JAN 31 NET. Shr profit nil vs loss five cts Net profit 232 vs loss 124,380 Revs 143,397 vs 61,901 1st half Shr profit one ct vs loss 10 cts Net profit 15,722 vs loss 264,539 Revs 354,843 vs 120,403  
DIGIMED CORP 2ND QTR DEC 31 LOSS. Shr loss two cts vs loss five cts Net loss 17,334 vs loss 51,507 Sales 245,560 vs 179,839 Avg shrs 1,136,785 vs 1,046,785 Six mths Shr profit four cts vs loss 17 cts Net profit 47,749 vs loss 174,373 Sales 721,937 vs 284,809 Avg shrs 1,136,785 vs 1,046,785  
FLIGHT INTERNATIONAL GROUP INC <FLTI> 3RD QTR. periods ended January 31 Shr profit 22 cts vs loss 26 cts Net profit 439,000 vs loss 522,000 Revs 5,600,000 vs 3,859,000 Nine mths Shr profit 46 cts vs loss three cts Net profit 912,000 vs loss 59,000 Revs 14.6 mln vs 18.3 mln NOTE: Year ago revenues include 400,000 dlrs in quarter and 2,227,000 dlrs in nine months from operations of subsidiary sold in April 1986  
NORD EST PLANS 400 MLN FRANC BOND ISSUE. Financial and industrial holding company Nord Est plans to make a convertible bond issue for a total of 400 mln francs, President Gustave Rambaud said. He told a news conference Nord-Est expected to receive approval from the Bourse supervisory body COB in the next two week, when terms would set according to market conditions. He said the issue was meant to boost capital ahead of new investments. Rambaud said the company would pay a 1986 dividend of 5.25 francs, unchanged on 1985. Parent company net profit last year rose to 99.5 mln francs against 71.1 mln in 1985. Provisional consolidated profits were lower at 185 mln francs compared with 200 mln in 1985, of which 120 mln, against 147 mln, was attributable to the group. He said the lower profit was mainly due to losses made by steel-tube maker Vallourec, in which Nord Est has a 12.5 pct stake. Rambaud said he forecast a 1987 parent company net profit before provisions of around 135 mln francs.  
UNR INDUSTRIES INC <UNRIQ> 4TH QTR NET. Shr profit 75 cts vs profit 25 cts Net profit 2,742,962 vs profit 936,333 Sales 74.9 mln vs 70.1 mln Year Shr profit 1.05 dlrs vs loss 1.07 dlrs Net profit 3,868,888 vs loss 3,931,580 Sales 299.3 mln vs 281.1 mln  
VOLT INFORMATION SCIENCES INC <VOLT> 1ST QTR. Shr 12 cts vs seven cts Net 817,000 vs 512,000 Revs 107.5 mln vs 99.9 mln Avg 6.9 mln vs 7.2 mln NOTE: 1987 net includes 2.4 mln dlr pretax gain on settlement, 743,000 dlrs gain on securities sale, interest expense net of investment income of 2.2 mln dlrs and 920,000 dlrs in fiscal 1986. Change of European operations method resulted in pre-tax translation losses of 1.1 mln dlrs in 1987. Period ended January 30.  
PARADISE FRUIT <PARF> SETS LOWER DIVIDEND. Paradise Fruit Co Inc said its board declared a dividend of 25 cts per share, payable March 31 to holders of record March 19. The company last paid 50 cts per share in January 1986 and before that paid 60 cts in January 1985. Paradise said commercial bank lending agreements it entered into in June 1986 include retained earnings requirements that limit the amount of earnings available for distribution to shareholders.  
<CANADA MALTING CO LTD> YEAR NET. Oper shr 1.30 dlrs vs 1.51 dlrs Oper net 4.06 mln vs 4.17 mln Sales 146.3 mln vs 155.9 mln Note: 1985 excludes extraordinary loss of 7.45 mln dlrs, or 2.70 dlrs per share.  
NORTH AMERICAN HOLDING CORP <NAHL> 3RD QTR NET. Dec 31 end Shr profit nil vs loss four cts Net profit 6,891 vs loss 590,460 Revs 6,518,133 vs 2,521,884 Avg shrs 13.1 mln vs 12.0 mln Nine mths Shr profit six cts vs loss seven cts Net profit 772,703 vs loss 758,620 Revs 20.1 mln vs 7,599,017 Avg shrs 13.2 mln vs 10.9 mln  
GENERAL HOST CORP <GH> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay April Three Record March 23  
GROW GROUP INC <GRO> SETS QUARTERLY. Qtly div 7-1/2 cts vs 7-1/2 cts prior Pay April 30 Record April 15  
DIGIMED CORP 2ND QTR DEC 31 LOSS. Shr loss 1.5 cts vs loss five cts Net loss 17,334 vs loss 51,507 Sales 245,560 vs 179,839 Six mths Shr profit four cts vs loss 17 cts Net profit 47,749 vs loss 174,373 Sales 721,937 vs 284,809  
TRINITY INDUSTRIES INC <TRN> SETS QUARTERLY. Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April 30 Record April 15  
COASTAL BANCORP <CSBK> SETS QUARTERLY. Qtly div five cts vs five cts prior Pay April 15 Record March 30  
IDAHO POWER CO <IDA> SETS QUARTERLY. Qtly div 45 cts vs 45 cts prior Pay May 20 Record April 24  
UNITED STATIONERS INC <USTR> SETS DIVIDEND. Qtly dividend six cts vs six cts Pay April 15 Record March 31  
LINCOLN NATIONAL CORP <LNC> SETS QUARTERLY. Qtly div 54 cts vs 54 cts prior Pay May One Record April 10  
PETRIE STORES CORP <PST> SETS QUARTERLY. Qtly div 17-1/2 cts vs 17-1/2 cts prior Pay April 20 Record April 2. o  
SAFEGUARD HEALTH <SFGD> 4TH QTR LOSS. Shr loss 30 cts vs profit 12 cts Net loss 2,374,000 vs profit 970,000 Revs 15.7 mln vs 13.4 mln Year Shr loss 13 cts vs profit 46 cts Net loss 1,054,000 vs profit 3,425,000 Revs 61.8 mln vs 49.9 mln Note: Full name Safeguard Health Enterprises Inc. Current qtr and year figures include 2.9 mln dlr reserve for estimated loss from proposed divestment of one-third of existing 40 offices.  
NORTH AMERICAN <NAHL> SEES RECORD FOURTH QTR. North American Holding Corp said it expects to have record fourth quarter earnings and for sales to exceed 10 mln dlrs. For the fourth quarter ended March 30, 1986 the company reported net income of 631,720 dlrs on sales of 5.2 mln dlrs. It also said it expects revenues for the year to exceed 30 mln dlrs. For fiscal 1986, North American reported a net loss of 126,900 dlrs on sales of 12.8 mln dlrs.  
WAL-MART STORES INC <WMT> RAISES QUARTERLY. Qtly div six cts vs 4-1/4 cts prior Pay April 10 Record March 23  
OPTROTECH LTD <OPTKF> YEAR NET. Shr 13 cts vs 50 cts Net 651,397 vs 2,602,120 Revs 26.4 mln vs 21.6 mln NOTE: 1986 net includes gain 291,027 dlr gain from quantity discount rebates on purchases of materials in prior years.  
NORTH ATLANTIC TECHNOLOGIES <NATT> 4TH QTR. Shr loss 20 cts vs loss 14 cts Net loss 352,000 vs loss 248,000 Revs 285,000 vs 681,000 Year Shr loss 92 cts vs loss 49 cts Net loss 1,613,000 vs loss 842,000 Revs 1,523,000 vs 2,557,000 NOTE: Full name is North Atlantic Technologies Inc  
PARKER DRILLING SUSPENDS QUARTERLY DIVIDEND.  PARKER DRILLING SUSPENDS QUARTERLY DIVIDEND  
PARKER DRILLING <PKD> SUSPENDS PAYOUT. Parker Drilling Co said its board of directors voted to suspend the payment of dividends to shareholders. Parker Drilling said it has been paying a quarterly dividend of one ct a share of common stock. The company said it expects to save 1.3 mln dlrs a year through the dividend suspension.  
EQK REALTY INVESTORS <EKR> 4TH QTR NET. Shr nine cts vs 22 cts Net 700,000 vs 2,200,000 Revs 5,400,000 vs 5,700,000 Avg shrs 7,589,344 vs 10.1 mln 12 mths Shr 43 cts Net 3,500,000 Revs 21.6 mln NOTE: 12 mth figures not available for 1985 since company started operations March 31, 1985.  
MASCO CORP <MAS> REGULAR DIVIDEND SET. Qtly div nine cts vs nine cts previously Pay May 11 Record April 17  
EQK REALTY INVESTORS I <EKR> SETS PAYOUT. Qtrly div 41.5 cts vs 41.5 cts prior Pay July 29 Record June 15  
IPCO CORP <IHS> SETS REGULAR PAYOUT. Qtrly div nine cts vs nine cts prior Pay May 1 Record April 9  
THERMWOOD CORP <THM> 2ND QTR JAN 31 NET. Shr three cts vs three cts Net 165,798 vs 143,872 Sales 1,787,561 vs 1,072,686 Six mths Shr four cts vs four cts Net 175,928 vs 191,310 Sales 3,137,695 vs 2,723,557 Avg shrs 4,862,046 vs 4,722,150  
PERINI INVESTMENT PROPERTIES <PNV> RAISES PAYOUT. Qtly div 15 cts vs 12 cts in prior qtr Payable June 25 Record May 28  
PETROLEUM AND RESOURCES CORP <PEO> DIVIDEND. Interim income dividend 20 cts. Last paid 1.14 dlrs February 27, including capital gains of 50 cts. Pyable April 20 Record April eight  
NEW LINE CINEMA CORP <NLN> 4TH QTR NET. Shr 11 cts vs nine cts Net 677,498 vs 461,485 Revs 6,271,010 vs 5,135,729 Year Shr 81 cts vs 20 cts Net 4,406,065 vs 973,967 Revs 26.5 mln vs 14.1 mln Avg shrs 5,457,339 vs 4,978,965  
IPCO CORP <IHS> REGULAR DIVIDEND. Qtly div nine cts vs nine cts in prior qtr Payable May one Record Apreil nine  
ASAMERA INC YEAR OPER SHR LOSS 48 CTS VS PROFIT 50 CTS.  ASAMERA INC YEAR OPER SHR LOSS 48 CTS VS PROFIT 50 CTS  
12-MAR-1987. 12-MAR-1987 
ROSE'S STORES INC <RSTO> 4TH QTR JAN 28. Shr 37 cts vs 37 cts net 7.6 mln vs 7.5 mln Revs 383.9 mln vs 326.3 mln Year Shr 1.17 dlrs vs 99 cts Net 24.0 mln vs 20.3 mln Revs 1.2 billion vs 1.0 billion  
ASAMERA INC <ASM> YEAR LOSS. Oper shr loss 48 cts vs profit 50 cts Oper net loss 11.3 mln vs profit 18.1 mln Revs 262.8 mln vs 399.7 mln Note: 1986 net excludes tax gain of 1.1 mln dlrs or three cts shr vs yr-ago gain of 5.6 mln dlrs or 17 cts shr. 1986 net includes 15 mln dlr charge for reduction in carrying value of refinery and related assets. 1985 net includes 10.8 mln dlr gain on sale of Canadian natural gas property. U.S. dlrs.  
LVI GROUP INC <LVI> 4TH QTR OPER NET. Oper shr profit two cts vs loss 19 cts Oper net profit 523,000 vs loss 2,191,000 Revs 102.5 mln vs 39.9 mln Avg shrs 20.0 mln vs 11.1 mln Year Oper shr profit 11 cts vs loss 29 cts Oper net profit 2,240,000 vs loss 2,884,000 Revs 304.4 mln vs 50.3 mln Avg shrs 19.4 mln vs 9,759,000 NOTE: 1986 4th qtr and year oper net excludes a gain of 492,000 dlrs and 1,241,000 dlrs, respectively, for carryforwards and a loss of 135,000 dlrs and 533,000 dlrs, respectively, for early extinguishment of debt. 1985 4th qtr and year oper net excludes a loss of 1,457,000 dlrs or 14 cts per share and loss 1,735,000 dlrs or 18 cts per share, respectively, for discontinued operations.  
CORE INDUSTRIES INC <CRI> 2ND QTR FEB 28 NET. Shr 20 cts vs 22 cts Net 1,948,000 vs 2,124,000 Sales 40.9 mln vs 41.0 mln Six mths Shr 40 cts vs 50 cts Net 3,864,000 vs 4,835,000 Sales 81.7 mln vs 79.9 mln NOTE: 1986 results include gain on sale of land of 571,000 dlrs, or six cts a share 1986 results include loss from discontinued operations of 403,000 dlrs, or four cts a share in the quarter and 598,000 dlrs, or six cts a share in the six months  
FIRST FINANCIAL <FFMC> IN STOCK SPLIT. First Financial Management Corp said its board declared a three-for-two stock split of its common stock. The split will be effected by a 50 pct stock dividend for shareholders of record March 23 to be distributed on April six.  
CIRCON CORP <CCON> 4TH QTR. Shr loss two cts vs profit 10 cts Net loss 79,000 vs profit 507,000 Revs 10.6 mln vs 2,238,000 12 mths Shr profit two cts vs profit 23 cts Net 89,000 vs 1,130,000 Revs 21.4 mln vs 7,766,000  
BROWN TRANSPORT <BTCU> DECLARES FIRST PAYOUT. Brown Transport Co Inc said its board declared an initial quarterly dividend of four cts a share, payable April 10 to stockholders of record March 31.  
TONY LOMA CO INC <TLAM> 4TH QTR. Shr profit nil vs loss 61 cts Net profit 3,000 vs loss 1,148,000 Revs 18.4 mln vs 17.8 mln Year Shr loss 94 cts vs loss 28 cts Net loss 1,762,000 vs loss 524,000 Revs 58.5 mln vs 67.3 mln NOTE: 1986 net includes extraordinary gain of 569,000 dlrs or 30 cts per share.  
EATON VANCE CORP <EAVN> 1ST QTR JAN 31 NET. Shr 53 cts vs 34 cts Net 2,253,742 vs 1,332,652 Avg shrs 4,251,553 vs 3,932,064  
ADAMS EXPRESS CO <ADX> SETS REGULAR PAYOUT. Div 12 cts vs 12 cts Pay April 20 Record April 8 NOTE: company pays dividend of 12 cts three times annually with a bulk payment at the end of the fiscal year to equal annual dividend of 50 cts.  
AMVESTORS FINANCIAL <AVFC> SETS STOCK DIVIDEND. AmVestors Financial Corp said it declared a 25 pct stock dividend payable June 19 to holders of record June one, subject to an increase in authorized shares. It said shareholders will vote at the April 23 annual meeting to increase authorized shares to 25 mln from 10 mln. The company also said it plans to pay an initial quarterly dividend of five cts a share on the shares.  
STANDARD LOGIC INC <STDL> 1ST QTR LOSS. Qtr ends Jan 30 Oper shr loss 45 cts vs profit 44 cts Oper Net loss 225,815 vs profit 219,593 Revs 175,247 vs 827,748 NOTE: oper net 1987 excludes loss from discontinued operations of 125,047 vs loss 34,055 for prior qtr. excludes tax carryforward 150,000 for prior qtr.  
SHAWMUT CORP <SHAS> SETS REGULARY DIVIDEND. Qtly div 51 cts vs 51 cts prior Pay April one Record March 23  
ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31. Shr 516 cts vs 347 Final div 135 vs 125 making 190 vs 180 Pre-tax 133 mln rand vs 137 mln Net 260 mln vs 172 mln Tax 76 mln vs 42 mln Att to outside shareholders 96 mln vs 53 mln Pref div 1 mln vs same Turnover 3.14 billion vs 2.56 billion Div pay May 8, register March 27. Note - Full name is Anglo American Industrial Corp Ltd.  
ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31. Shr 516 cts vs 347 Final div 135 vs 125 making 190 vs 180 Pre-tax 133 mln rand vs 137 mln Net 260 mln vs 172 mln Tax 76 mln vs 42 mln Att to outside shareholders 96 mln vs 53 mln Pref div 1 mln vs same Turnover 3.14 billion vs 2.56 billion Div pay May 8, register March 27. Note - Full name is Anglo American Industrial Corp Ltd.  
CJI INDUSTIRES INC <CJIIA> 4TH QTR NET. Oper shr profit 60 cts vs loss 55 cts Oper net profit 928,000 vs loss 88,000 Revs 48.7 mln vs 39.7 mln Avg shrs 3.7 mln vs 1.5 mln Year Oper shr loss 1.17 dlrs vs loss 60 cts Oper net profit 2,537,000 vs profit 587,000 Revs 178.8 mln vs 117.6 mln NOTE: Per share figures come after preferred dividends. Excludes fourth quarter and full year 1986 extraordinary gains of 29 cts and 71 cts per share, respectively.  
COUNSEL CORP SETS THREE-FOR-TWO STOCK SPLIT. <Counsel Corp> said it plans a three-for-two stock split, pending shareholder approval at the April 28 annual meeting. The company said it recently reported 1986 profit of 5.9 mln dlrs, or 1.51 dlrs a share, before extraordinary items, compared with 2.2 mln dlrs, or 81 cts, in 1985.  
CANNON <CAN> AUDIT TO SHOW SIGNIFICANT 1986 LOSS. The Cannon Group Inc said its financial statements will show substantial losses for fiscal 1986 and "significant downward adjustments in previously reported stockholders' equity." The company also said its 1986 audit being conducted by <Arthur Young and Co> will cover the year ended January 3, 1987, instead of the nine-month period ended September 27, 1986 as previously announced. It said it anticipates the results of the audit will be available in mid to late April 1987.  
THE ADELAIDE STEAMSHIP CO LTD <ADSA.S> FIRST HALF. First half ended December 31 Shr 55.01 cents vs 97.76 Int div 18 cents vs 16 Net 75.05 mln dlrs vs 55.68 mln Turnover 156.94 mln vs 177.87 mln Other revenue 72.50 mln vs 31.18 mln. One-for-five rights issue at 11.50 dlrs a share One-for-four bonus issue on capital enlarged by rights issue Shrs 99.36 mln vs 70.94 mln. NOTE - Shr applies to total net 54.66 mln dlrs vs 69.48 mln after extraordinaries loss. Pre-extraordinaries net shr 75.53 cents vs 78.32 Div pay April 30. Div and rights issue reg March 30. Bonus reg May 6. Net equity-accounts share of associates' earnings. Pre-equity pre-tax earnings 59.52 mln dlrs vs 64.13 mln. Pre-equity net 52.07 mln dlrs vs 43.35 mln after tax 3.45 mln vs 16.34 mln, minorities 4.00 mln vs 6.44 mln, interest 33.89 mln vs 26.11 mln and depreciation 2.67 mln vs 2.72 mln but before net extraordinary loss 20.39 mln vs 13.79 mln.  
BRYN MAWR BANK CORP <BMTC> UPS DIVIDEND. Qtly div 30 cts vs 30 cts prior Payable May one Record April 10 NOTE:Bryn Mawr was reorganized as a holding company on January 2, 1987, resulting in each share of Bryn Mawr Trust Co being converted into three shares of the new holding company's stock. The 30 cts dividend represents a 15 pct increase over prior quarter.  
12-MAR-1987. 12-MAR-1987 
ADSTEAM RIGHTS ISSUE TO RAISE 228 MLN DLRS. The Adelaide Steamship Co Ltd <ADSA.S> (Adsteam) said its one-for-five rights issue at 11.50 dlrs a share will raise 228.5 mln dlrs for general working capital and investment, both in Australia and overseas. The group announced the issue with its first half earnings and said in a statement that the rights issue will be followed by a one-for-four bonus issue. Adsteam's equity-accounted net earnings rose to 75.05 mln dlrs in the half ended December 31 from 55.68 mln a year earlier and interim dividend to 18 cents from 16. Adsteam shares eased to 14.20 dlrs from an opening 14.60 and yesterday's close of 14.50 on the issue announcement. The issue will be underwritten by <Morgan Grenfell Australia Ltd> and <McCaughan Dyson Ltd> apart from the shares to be taken up by Adsteam's associate and largest shareholder, department store retailer <David Jones Ltd>. New shares will not rank for the interim dividend but will rank equally thereafter. Adsteam said it expects to maintain an annual dividend rate of 36 cents on capital enlarged to about 149 mln shares by both issues from 99.36 mln. Adsteam said its diverse industrial interests generally performed well and its results, as the ultimate holding company and beneficiary, reflected this solid performance. David Jones, owned 49.2 pct by Adsteam, earned the largest associates' net of 57.38 mln dlrs in the half against 40.29 mln a year earlier, Adsteam's figures show. Wholly-owned and joint venture companies also did well apart from timber, building supplies and real estate, which returned below-budget profits due to the housing downturn. Adsteam said it sees 1987/88 as a year of reconstruction and consolidation with the capital base boosted by the issue.  
KUBOTA LTD <KUB.T> THIRD QUARTER TO JANUARY 15. Group shr 53 yen vs 22 Net profit 3.58 billion vs profit 1.47 billion Pretax profit 4.94 billion vs loss 248 mln Operating profit 5.36 billion vs profit 789 mln Sales 127.34 billion vs 130.22 billion Nine months ended January 15 Group shr 134 yen vs 119 Net 9.10 billion vs 8.03 billion Pretax 19.78 billion vs 14.77 billion Operating 17.35 billion vs 16.00 billion Sales 430.06 billion vs 446.26 billion  
SANDOZ AG <SANZ.Z> YEAR 1986. Group 1986 net profit 541 mln Swiss francs vs. 529 mln Dividend 105 francs per 250 francs nominal share vs. 100, 21 francs per 50 franc nominal participation certificate vs 20 Group Turnover 8.36 billion francs vs. 8.45 billion Cash Flow 956 mln francs vs. 941 mln Parent company net profit 153.8 mln francs vs. 135.3 mln  
ALUSUISSE GROUP 1986 NET LOSS 688 MLN SWISS FRANCS (LOSS 756 MLN).  ALUSUISSE GROUP 1986 NET LOSS 688 MLN SWISS FRANCS (LOSS 756 MLN)  
ALUSUISSE <ALUZ.Z> YEAR 1986. Net Loss 688 mln Swiss francs vs. Loss 756 mln Gross sales 5.93 billion vs. 8.51 billion Operating income 198 mln francs vs 256 mln Net extraordinary charges 592 mln vs 472 mln Note - Company plans 50 pct capital reduction, banks to convert 300 mln francs of credit facilities to subordinated loans. No immediate plans for capital increase. Company full name Schweizerische Aluminium AG.  
ALUSUISSE SHARES SUSPENDED ON CAPITAL CUT NEWS. Trading in shares of Schweizerische Aluminium AG, Alusuisse, <ALUZ.Z> was suspended on the Zurich stock exchange after today's announcement by the company that it would cut its share capital by 50 pct, the bourse said. The bourse said trading would resume again on Monday. Alusuisse bearer shares closed at 490 francs yesterday, registered shares at 170 francs and the participation certificates at 45.50.  
SCHWEIZERHALLE FIRE HIT SANDOZ 1986 PROFITS. Sandoz AG <SANZ.Z> would have reported a percentage rise in net profits "close to double figures" rather than the actual two pct had it not been for November's warehouse fire, a senior company official said. The official, who declined to be identified, told Reuters Sandoz had made a substantial addition to reserves to cope with the consequences of the accident at Schweizerhalle, which caused severe pollution of the Rhine. Sandoz today reported without comment a rise in net profits to 541 mln francs from the previous 529 mln and a five pct increase in dividend to 105 francs per 250 franc nominal share. This year began well, with the performance in January and February at least equal to the same period last year, the official said. The company is expected to give fuller details of its results at a news conference on April 22. Sandoz has insisted that it is adequately insured to cover any liability arising from the accident. The official said the addition to reserves was to cover the "one pct" of claims somehow not covered and any voluntary gestures it wanted to compensate for the effects of pollution from the fire. Sandoz has not given any figure for claims, which have been flowing in from Switzerland and other countries bordering the Rhine since the accident. However, the official said the final figure would be "much less than that cited in earlier comments." He gave no further details. In line with fellow chemical giant Ciba-Geigy <CIGZ.Z>, which reported last month, Sandoz profit and turnover were also hit by the falling dollar, the official said. Sales in local currency terms were up by 14 pct, with market share increases in the United States and Japan. But this was more than offset by a 15 pct negative foreign exchange effect, which produced the reported one pct drop in turnover to 8.36 billion francs,the Sandoz official said. Net profit at Ciba-Geigy dropped by 21 pct to 1.16 billion francs, while sales fell by 12 pct to 15.95 billion francs. The third major Swiss chemical company, F. Hoffmann-La Roche and Co <HOFZ.Z> has not yet reported its results.  
ALUSUISSE SEES POSSIBLE BREAK-EVEN IN 1987. Schweizerische Aluminimum AG <ALUZ.Z> (Alusuisse) may be able to break even this year after cleansing its balance sheet for 1986, chief executive Hans Jucker said. "The threshold of profitability has returned to the foreseeable future," he said. "We expect already in 1987 approximately to break even. That presupposes, however, that our industrial environment does not worsen." He said Alusuisse would no longer face the burden of past losses. Alusuisse made a net loss of 688 mln Swiss francs in 1986 after a restated 756 mln loss in 1985. Gross sales were 5.93 billion francs after 8.51 billion and net turnover 5.65 billion after 8.00 billion. Alusuisse had originally reported a 692 mln francs loss for 1985. But Jucker and Finance Director Hermann Haerri told a news conference the new management installed a year ago had decided to restate the previous five years' accounts to eliminate rights on Australian bauxite previously in the books as an asset. Together with other one-off charges, Alusuisse took an gross extraordinary charge in 1986 of 698 mln francs, up from 472 mln in 1985. It also had 106 mln extraordinary income in 1986 remaining, after provisions, from the sale of its Maremont Corp subsidiary in the United States. There were no extraordinary gains in 1985. Jucker said the losses, plus those carried forward from 1985, had wiped out the company's remaining reserves and exceeded legally allowed levels, forcing Alusuisse to adopt a 50 pct capital cut, to be approved by shareholders on April 22. Jucker said he knew shareholders would find this "radical elimination of the mortgages of the past" painful, but said the foundation had been laid for a successful new company strategy. Haerri said despite the losses, the company's liquidity was strong. Bank debt had been cut by about one-third to 2.56 billion francs against the end-1985 level of 3.85 billion. Cash flow improved substantially to 323 mln francs from 111 mln and represented 5.7 pct of turnover against a mere 1.4 pct in 1985. In addition, to reassure other creditors, Alusuisse had arranged with three major Swiss banks -- Union Bank of Switzerland <SBGZ.Z>, Swiss Bank Corp <SBVZ.Z> and Credit Suisse <CRSZ.Z>, to convert 300 mln francs of credits into a subordinated loan. The main sources of losses in 1986 were book losses and not cash losses, Haerri said. Existing credit lines were used only to a small extent, and the parent company had been granted a new credit line of 200 mln francs from a consortium of Swiss banks that would cover most of the loans falling due in 1987. Haerri said the company had been criticized for maintaining bauxite rights as an asset, and so had restated the accounts. That left the 1985 account with a 756 mln franc loss instead of 692 mln, 1984 with a 68 mln profit instead of 169 mln, 1983 with a 217 mln loss instead of 82 mln and 1982 with a 479 mln loss instead of 179 mln. The new accounts show 1985 with shareholders' equity of 1.15 billion francs instead of 1.75 billion, and similar alternations were made for previous years. After 1986 losses, shareholder's equity stood at only 895 mln francs.  
JAPAN CORPORATE PROFITS IN LAST 1986 QUARTER UP. Current profits of Japan's major firms in the October-December quarter rose four pct from a year earlier to 5,654 billion yen against a 2.6 pct year-on-year rise in the preceding quarter, the Finance Ministry said. The improved earnings resulted mainly from a 22.5 pct profit increase in non-manufacturing industries, supported by an 88.7 pct rise for construction firms and a 138 pct gain in real estate, according to a ministry survey. Total sales of the 15,308 firms with capital of 10 mln yen or more which responded to the poll, fell one pct to 217,217 billion yen against a 1.2 pct fall the previous quarter. Current profits of manufacturing industries in the fourth quarter dropped 13.7 pct to 2,394 billion yen against a 22.1 pct fall in the preceding quarter, the ministry said. Plant and equipment investments of all firms polled fell 3.9 pct to 8,004 billion yen, compared with a 1.4 percent fall the previoius quarter. Ministry officials said the survey showed that the Japanese economy is in a delicate stage in which it is hard to tell if economic growth has stopped deteriorating or if the economy is heading for a recovery.  
AEP INDUSTRIES INC <AEPI> 1ST QTR JAN 31 NET. Shr 19 cts vs 32 cts Net 586,000 vs 802,000 Sales 14.2 mln vs 15.1 mln Avg shrs 3,006,372 vs 2,506,250  
D.H. HOLMES CO LTD <HLME> 4TH QTR NET. Shr 39 cts vs 1.34 dlrs Net 1,392,000 vs 4,686,000 Sales 81.9 mln vs 81.7 mln Year Shr 10 cts vs 97 cts Net 355,000 vs 3,375,000 Sales 270.4 mln vs 272.8 mln NOTE: Share adjusted for three pct stock dividend in January 1987. Pretax net profits 3,052,000 dlrs vs 4,498,000 dlrs in quarter and loss 572,000 dlrs vs profit 2,922,000 dlrs in year. Latest year net includes pretax gains of 166,000 dlrs in quarter and 4,420,000 dlrs in year from pension plan reversions. Prior year net includes gain 1,549,000 dlrs on sale of property.  
FIRST FARWEST CORP <FFWS> 4TH QTR LOSS. Shr loss 4.22 dlrs vs profit nil Net loss 5,568,000 vs profit 11,000 Revs 42.2 mln vs 37.5 mln Year Shr loss 3.74 dlrs vs profit 1.02 dlrs Net loss 4,898,000 vs profit 1,384,000 Revs 139.0 mln vs 132.7 mln NOTE: 1986 net both periods includes 1,603,000 dlr loss from discontinued operations due to settlement of lawsuit and redemption of preferred.  
HEMOTEC INC <HEMO> 4TH QTR NET. Shr one ct vs two cts Net 22,000 vs 58,000 Sales 951,000 vs 901,000 Year Shr four cts vs 12 cts Net 88,000 vs 293,000 Sales 4,014,000 vs 3,533,000 NOTE: Net includes tax credits of 46,000 dlrs vs 84,000 dlrs in quarter and credit 19,000 dlrs vs provision 37,000 dlrs in year.  
DREYER'S GRAND <DRYR> RESTATES 4RTH QUARTER LOSS. Dreyer's Grand Ice Cream said it has restated its previously-reported fourth quarter loss to 904,000 dlrs or 13 cts per share because it has now decided to take a charge of about 700,000 dlrs to provide for losses of Midwest Distributing Co, which was acquired December 30. Dreyer's said the restatement reduces net income for the full year to 5,914,000 dlrs or 80 cts per share. The company said the restatement does not indicate any change in its thinking on the benefits of the acquisition or future prospects in Midwest Distributing's markets. Dreyer's Grand previously reported 1986 earnings of 6,614,000 dlrs or 90 cts per share, down from 7,960,000 dlrs or 1.08 dlrs a share.  For the first nine months of the year, it had earned 6,818,000 dlrs or 92 cts per share, up from 6,354,000 dlrs or 86 cts a share a year before.  
<TURBO RESOURCES LTD> YEAR NET. Oper shr nine cts vs three cts Oper shr diluted eight cts vs three cts Oper net 15 mln vs five mln Revs 518 mln vs 622 mln NOTE: Oper net excludes extraordinary income of seven mln dlrs vs four mln on tax loss carryforward, offset by writedowns of three mln dlrs vs eight mln on U.S. oil and gas properties and other assets.  
VW HAS NO COMMENT ON SEAT LOSS REPORTS. A Volkswagen AG <VOWG.F> spokesman said the group had no immediate comment on reports of greater than expected losses at its Spanish subsidiary Sociedad Espanola de Automoviles de Turismo (SEAT). German newspapers reported that Werner Schmidt, SEAT supervisory board chairman, had told journalists that SEAT losses for 1986 were around 27 billion pesetas, or about 386 mln marks, almost double original expectations. According to the Boersen-Zeitung newspaper, Schmidt said VW would invest 42 billion pesetas in SEAT this year and in the years to 1995 would spend 462 billion on its new Spanish unit.  
GENERAL MILLS INC 3RD QTR SHR 64 CTS VS 52 CTS.  GENERAL MILLS INC 3RD QTR SHR 64 CTS VS 52 CTS  
<MDI MOBILE DATA INTERNATIONAL INC> YEAR NET. Oper shr 63 cts vs 47 cts Oper shr diluted 56 cts vs 38 cts Oper net 3,284,955 vs 2,176,925 Revs 31.6 mln vs 23.0 mln NOTE: Current oper net excludes writedown of 344,039 dlrs, or seven cts a share, on unidentified investment.  
ESSELTE AB <ESB.ST> 1986 RESULTS. Group profit after net interest items 742 mln crowns vs 741 mln. Sales 11.25 billion crowns vs 10.22 billion. Estimated profit per share 10 crowns vs 9.20. Proposed dividend four crowns vs 3.38.  
GREAT AMERICAN BANCORP <GRTB> 4TH QTR NET. Shr profit seven cts vs loss 24 cts Net profit 151,000 vs loss 523,000 12 mths Shrs loss 1.70 dlrs vs loss 44 cts Net loss 3,670,000 vs loss 947,000 Assets 99.7 mln vs 102.6 mln Deposits 91.1 mln vs 90.6 mln Loans 44.3 mln vs 51.7 mln  
KONINKLIJKE NEDERLANDSE PAPIERFABRIEKEN <KNPN.AS>. Net 1986 profit 132.6 mln guilders vs 117.3 mln Turnover 1.6 billion guilders vs same Earnings per share 16.00 guilders vs 15.80 on capital expanded by 11 pct to 8.21 mln outstanding shares. Proposed dividend per share 5.50 guilders vs 5.00 Note - Full company name is Koninklijke Nederlandse Papierfabrieken NV.  
GENERAL MILLS INC <GIS> 3RD QTR FEB 22 NET. Shr 64 cts vs 52 cts Net 56,900,000 vs 46,400,000 Sales 1.31 billion vs 1.13 billion Avg shrs 88.2 mln vs 89.3 mln Nine mths Shr 2.09 dlrs vs 1.59 dlrs Net 185,900,000 vs 141,300,000 Sales 3.84 billion vs 3.36 billion Avg shrs 88.9 mln vs 89.1 mln NOTE: 1986 period ended February 23 Prior year amounts restated to reflect discontinued furniture operations Earnings include gains from discontinued operations of 1.5 mln dlrs, or two cts a share in the 1986 quarter and gains of 8.5 mln dlrs, or 10 cts a share in the fiscal 1987 nine months vs 3.0 mln dlrs, or four cts a share a year earlier  
NOVELL <NOVL> SETS PAYMENT DATE FOR STOCK SPLIT. Novell Inc said the dividend to effect its previously announced two-for-one stock split will be distributed April 13. As stated at the time of the original announcement, the company said the payment will be made to holders of record March 31.  
NORTEK INC <NTK> SETS QUARTERLIES. Qtly div common 2-1/2 cts vs 2-1/2 cts prior Qtly div special common one ct vs one ct Pay May Eight Record April Three  
NOVA AN ALBERTA CORP 4TH QTR SHR LOSS 15 CTS VS LOSS 1.09 DLRS.  NOVA AN ALBERTA CORP 4TH QTR SHR LOSS 15 CTS VS LOSS 1.09 DLRS  
HEALTHCO INTERNATIONAL INC <HLCO> 4TH QTR NET. Oper shr 51 cts vs 43 cts Oper shr diluted 47 cts vs 43 cts Oper net 3,182,000 vs 2,462,000 Revs 101.7 mln vs 87.0 mln Avg shrs 6,246,664 vs 5,671,607 Avg shrs diluted 7,501,209 vs 5,671,607 Year Oper shr 1.84 dlrs vs 1.48 dlrs Oper shr diluted 1.76 dlrs vs 1.48 dlrs Oper net 11.5 mln vs 8,312,000 Revs 349.2 mln vs 307.0 mln Avg shrs 6,238,720 vs 5,616,019 Avg shrs diluted 6,969,389 vs 5,616,019 NOTE: 1986 net both periods excludes charge 1,205,000 dlrs from distribution system restructuring costs. 1986 year net excludes 440,000 dlr debt retirement gain and gain 12.8 mln dlrs from sale of HPSC Inc <HPSC> stock. 1986 net both periods includes charge 768,000 dlrs from reversal of investment tax credits.  
WILFRED AMERICAN EDUCATIONAL CORP <WAE> 4TH QTR. Shr two cts vs 36 cts Net 182,000 vs 3,433,000 Revs 20.1 mln vs 21.4 mln Year Shr 71 cts vs 98 cts Net 6,706,000 vs 9,275,000 Revs 85.7 mln vs 75.4 mln NOTE: 1985 net both periods includes gain 743,000 dlrs from cancellation of debt. 1986 quarter net includes reversal of 216,000 dlrs in investment tax credits.  
AL LABORATORIES INC <BMD> 4TH QTR NET. Shr 10 cts vs 14 cts Net 913,000 vs 1,273,000 Revs 37.7 mln vs 24.7 mln 12 mths Shr 61 cts vs 60 cts Net 5,529,000 vs 5,448,000 Revs 123.6 mln vs 96.8 mln NOTE: net for qtr and yr 1986 and 1985 adjusted to reflect retroactive effect of three-for-two stock splits distributed to shareholders in July 1986 and August 1985. 1986 net includes results of operations of Parmed Pharmaceuticals Inc, acquired May 29, 1986.  
NU-MED INC <NUMS> 3RD QTR JAN 31 NET. Shr 26 cts vs 10 cts Net 2,867,000 vs 1,208,000 Revs 100.0 mln vs 85.0 mln Avg shrs 10.4 mln vs 9,791,671 Nine mths Shr 57 cts vs 34 cts Net 6,327,000 vs 3,951,000 Revs 284.4 mln vs 225.4 mln Avg shrs 10.1 mln vs 9,831,097 Current year net both periods includes gain 1,755,000 dlrs from change inestimation of useful lives used in depreciation of property and equipment.  
ALUSUISSE PLANS 50 PCT CAPITAL CUT. Schweizerische Aluminium AG, Alusuisse, plans to reduce share and participation certificate capital by 50 pct to cover losses in 1986 and those carried forward from the previous year, chief executive Hans Jucker said. Jucker told a news conference that the greatest drain on its financial resources had been stopped, but after extraordinary charges the net loss of 688 mln francs in 1986 was only slightly under the 756 mln loss of the previous year. The losses in 1986 and those carried over from 1985 made it necessary to reduce capital by 50 pct, he said. However, Jucker said the company improved liquidity through a recovery in cash flow and conversion of 300 mln Swiss francs of credit into a subordinated loan. Trading in Alusuisse shares was suspended on the Zurich stock exchange after today's announcement by the company that it would cut its share capital by 50 pct, the bourse said. Trading would resume again on Monday.  
DAVIS WATER <DWWS> RELEASES PRE-SPLIT EARNINGS. Davis Water and Waste Industries Inc said it has restated its earnings on a pre- stock split basis for fiscal 1987's third quarter and nine months ended January 31, which were reported March 10 on a post four-for-three stock split basis. The company said its earnings per share for the third quarter on a pre-split basis, converts to 16 cts from 12 cts post-split, versus three cts pre-split from two cts post-split for fiscal 1986's third quarter. For the nine months, Davis said, earnings per share would convert to 77 cts and 44 cts for fiscal 1987 and 1986 respectively, from 58 cts and 33 cts, respectively.  
<NOVA AN ALBERTA CORP> 4TH QTR LOSS. Shr loss 15 cts vs loss 1.09 dlrs Net loss 19.3 mln vs loss 139.6 mln Revs 611.7 mln vs 868.6 mln Year Shr profit 12 cts vs loss 1.31 dlrs Net profit 16.1 mln vs loss 167.9 mln Revs 2.68 billion vs 3.35 billion Avg shrs 134.7 mln vs 128.1 mln  
ECHLIN INC <ECH> DIVIDEND INCREASED 12 PCT. Qtly div 14 cts vs 12.5 cts in prior qtr Payable April 18 Record April two  
NATIONAL ENTERTAINMENT CORP <NENT> 3RD QTR NET. Jan 31 end Shr six cts vs eight cts Net 177,000 vs 252,000 Revs 3,209,000 vs 1,070,000 Nine mths Shr 12 cts vs eight cts Net 365,000 vs 247,000 Revs 7,156,000 vs 2,960,000 NOTE: Prior year net both periods includes 91,000 dlr tax credit.  
NATIONAL ENTERTAINMENT <NENT> REVERSE SPLIT SET. National Entertainment Corp said shareholdersapproved a one-for-25 reverse stock split and a name change to Major Video Corp, both effective March 16. It said its new ticker symbol will be <MAJV>. The company also said it expects to add nine company-owned and franchised Major Video stores in the next 60 days.  It now operates 64.  
<PEMBINA RESOURCES LTD> YEAR NET. Shr 48 cts vs 81 cts Net 3,986,000 vs 6,760,000 Revs 77.3 mln vs 40.5 mln  
GENERAL MILLS<GIS> SEES STRONG 4TH QTR RESULTS. General Mills Inc, reporting stronger results for the third quarter ended February 22, said it expects the momentum to continue in the fourth quarter. The company said it expects to report "strong earnings per share growth and a record return on equity in fiscal 1987." It said this should be achieved despite expected non-operating charges in the final quarter. General Mills said these charges will likely offset non-operating gains, which included six cts a share in the first half. General Mills said at the end of the third quarter, its return on average equity was 31.6 pct. It said major factors contributing to the third quarter improvement were an 11 pct gain in unit volume by Consumer Foods, continuing good profit growth at Red Lobster USA and strong performance in Specialty Retailing. The company reported quarterly earnings of 56.9 mln dlrs, or 64 cts a share, up from 46.4 mln dlrs, or 52 cts a share a year ago. Sales rose to 1.31 billion dlrs from 1.13 billion dlrs. Year-ago data reflect a two-for-one common stock split.  
MANUFACTURED HOMES INC <MNH> YEAR NET. Shr 53 cts vs 85 cts Net 2,033,425 vs 3,718,325 Revs 120.6 mln vs 79.5 mln NOTE: 1986 net includes 3,300,000 dlr provision for credit loss. 1985 net includes charge 504,571 dlrs from cumulative effect of accounting change.  
CONSUMERS FINANCIAL CORP <CFIN> 1986 NET. Shr 61 cts vs 42 cts Net 6,247,000 vs 5,587,000 Rev 65.4 mln vs 53.6 mln NOTE: 1986 net includes investment gains of 25 cts a share, versus six cts a share for 1985, and extraordinary gain of seven cts a share.  
CHICAGO RIVET AND MACHINE CO <CVR> 4TH QTR NET. Shr 21 cts vs 60 cts Net 156,576 vs 443,404 Sales 5,309,519 vs 5,381,264 Year Shr 1.06 dlrs vs 1.55 dlrs Net 788,220 vs 1,151,330 Sales 22.3 mln vs 23.6 mln  
FILTERTEK INC <FTK> SETS QUARTERLY. Qtly div 11 cts vs 11 cts prior Pay May 15 Record May One  
TRANSACT INT'L INC <TACT> 3RD QTR JAN 31 NET. Shr one ct vs three cts Net 66,922 vs 194,531 Rev 4.2 mln vs 5.7 mln Nine months Shr two cts vs four cts Net 93,802 vs 260,702 Rev 10.1 mln vs 13.2 mln NOTE: Nine months 1987 period includes gain of 196,043 dlrs from sale of Meston Lake Resources shares and a credit of 127,000 dlrs from a favroable settlement of s state income tax assessment. 1986 nine months period includes gain of 160,431 dlrs, or two cts a share, from sale of Ferrotherm Co.  
CITICORP SAYS PLACING BRAZIL LOANS ON CASH BASIS COULD CUT 1ST QTR NET BY 50 MLN DLRS.  CITICORP SAYS PLACING BRAZIL LOANS ON CASH BASIS COULD CUT 1ST QTR NET BY 50 MLN DLRS  
DIVI HOTELS NV <DVH> 3RD QTR NET. Shr profit 36 cts vs profit 14 cts Net profit 1,162,000 vs profit 464,000 Revs 16.6 mln vs 11.3 mln Nine mths Shr loss 89 cts vs loss 79 cts Net loss 2,988,000 vs loss 2,673,000 Revs 35.1 mln vs 25.1 mln NOTE: Nine months fiscal 1987 includes extraordinary gain of 16 cts per share.  
HELMERICH AND PAYNE INC <HP> INCREASES DIV. Qtly div 10 cts vs nine cts Payable June one Record May 15  
HOLLY CORP <HOC> 2ND QTR JAN 31 LOSS. Shr loss 45 cts vs profit 20 cts Net loss 1,841,000 vs profit 983,000 Revs 56.2 mln vs 102.9 mln Six mths Shr loss 13 cts vs profit 80 cts Net loss 534,000 vs profit 4.4 mln Revs 121.4 mln vs 209.3 mln NOTE: Six months fiscal 1987 includes loss of 17 cts per share from discontinued operations. Per share figures also reflect partial three-for-one stock split effected December 1985.  
<TRANSIT FINANCIAL HOLDINGS INC> 4TH QTR NET. Shr 35 cts vs 13 cts Net 531,840 vs 188,362 Revs not given Year Shr 83 cts vs 41 cts Net 1,249,000 vs 620,000 Revs 10,800,000 vs 5,600,000  
SPORTING LIFE INC <SPLF> 2ND QTR JAN 31 NET. Oper shr loss six cts vs profit four cts Oper net loss 58,388 vs profit 34,101 Revs 2,419,203 vs 2,145,967 1st half Oper shr profit six cts vs profit 18 cts Oper net profit 61,763 vs profit 172,166 Revs 5,731,582 vs 4,458,040 NOTE: Prior year net excludes extraordinary credits of 4,500 dlrs in quarter and 46,000 dlrs in half. Current quarter net includes 47,470 dlr tax credit.  
<ARGYLL ENERGY CORP> YEAR LOSS. Shr loss 1.41 dlrs vs profit 27 cts Net loss 8,225,052 vs profit 1,566,936 Revs 4,028,231 vs 6,725,462 Note: 1986 shr and net after 6,606,646 dlr writedown on property and other assets  
TRANSIT FINANCIAL SEES 1987 SHARE PROFIT RISE. <Transit Financial Holdings Inc>, earlier reporting higher fourth quarter and full year earnings, said it expects 1987 share profit to increase to 1.27 dlrs from 83 cts in 1986. The company said the 1987 share forecast is based on 2.5 mln shares outstanding, after a one mln common share issue on December 30, 1986. Its 1986 and 1985 earnings were based on 1.5 mln shares outstanding. The company earlier reported 1986 profit rose to 1,249,000 dlrs or 83 cts a shares from year-earlier 620,000 dlrs or 41 cts a share.  
HOLLY CORP <HOC> 2ND QTR JAN 31 LOSS. Shr loss 45 cts vs profit 20 cts Net loss 1,841,000 vs profit 983,000 Revs 56.2 mln vs 102.9 mln Avg shrs 4,127,000 vs 4,835,000 1st half Oper shr four cts vs 80 cts Oper net 172,000 vs 4,359,000 Revs 121.4 mln vs 209.3 mln Avg shrs 4,127,000 vs 5,439,000 NOTE: Current half net excludes 706,000 dlr loss from discontinued oil and natural gas operations. Share adjusted for three-for-one stock split and recapitalization in December 1985. Prior year net both periods includes pretax charge of 2,300,000 dlrs from recapitalization costs.  
SAN JUAN RACING ASSOCIATION INC <SJR> 3RD QTR. Shr 22 cts vs 22 cts Net 915,911 vs 970,141 Revs 8.0 mln vs 8.0 mln Nine months Shr 69 cts vs 56 cts Net 3.0 mln vs 2.4 mln Revs 23.5 mln vs 22.1 mln NOTE:1987 3rd qtr and nine months include extraordainry gain of 341,145 dlrs and 480,412 dlrs, respectively, on sale of land.  
INFINITE GRAPHICS INC <INFG> 3RD QTR JAN 31 NET. Shr profit two cts vs loss 11 cts Net profit 31,734 vs loss 190,677 Sales 1,325,978 vs 1,029,921 Nine Mths Shr profit eight cts vs loss 53 cts Net profit 142,200 vs loss 939,435 Sales 4,066,777 vs 2,793,479  
HEALTH-MOR INC <HMI> SETS DIVIDEND. Qtly dividend 17 cts vs 17 cts Pay April 10 Record March 26  
FAIRCHILD INDUSTRIES INC 4TH QTR OPER SHR LOSS 44 CTS VS LOSS EIGHT CTS.  FAIRCHILD INDUSTRIES INC 4TH QTR OPER SHR LOSS 44 CTS VS LOSS EIGHT CTS  
GTS CORP <GTSC> 4TH QTR DEC 31 LOSS. Shr loss 48 cts vs loss 10 cts Net loss 1,234,000 vs loss 259,000 Revs 715,000 vs 1,941,000 Year Shr loss 1.26 dlrs vs loss 34 cts Net loss 3,229,000 vs loss 870,000 Revs 3,001,000 vs 9,767,000 NOTE: 1986 net both periods includes 672,300 dlr writedown of value of seismic laboratory and 165,000 dlr increase in reserve for doubtful accounts.  
FAIRCHILD INDUSTRIES INC <FEN> 4TH QTR LOSS. Oper shr loss 44 cts vs oper loss eight cts Oper net loss 3,158,000 vs profit 2,035,000 Rev 166.0 mln vs 162.3 mln Year Oper shr loss 34 cts vs loss 93 cts Oper net profit 7,599,000 vs loss 283,000 Rev 643.3 mln vs 576.3 mln NOTE: Per share results after provision for pfd dividends. Fourth qtr earnings exclude loss from discontinued operations of 67.6 mln dlrs, or 4.72 dlrs a share, and a loss of 25.8 mln dlrs, or 1.81 dlrs a share, from tax reverse, versus a gain from discontinued operations of 1.8 mln dlrs, or 14 cts a share, in 1985's 4th qtr. 1986 oper earnings excludes loss from discontinued operations of 62.5 mln dlrs, or 4.41 dlrs a share, versus a loss of 166.8 mln dlrs, or 12.24 dlrs a share, in 1985.  
DESOTO INC <DSO> REGULAR DIVIDEND SET. Qtly div 35 cts vs 35 cts previously Pay April 17 Record March 31  
METHODE ELECTRONICS INC <METHB> REGULAR PAYOUT. Qtly div Class B 1-1/2 cts vs 1-1/2 cts prior Class A two cts vs two cts prior Pay April 30 Record April 15  
GENERAL CINEMA CORP <GCN> COMMON STOCK DIVIDEND. Qtly div 15 cts vs 15 cts prior Pay April 30 Recrod April nine  
STEPHAN CO <FTC> YEAR NET. Shr 25 cts vs 18 cts Net 109,131 vs 75,793 Revs 1,811,636 vs 1,280,618  
MET-PRO CORP <MPR> TO PAY REGULAR DIVIDEND. Qtrly 15 cts vs 15 cts prior Pay May Eight Record April 24  
AILEEN INC <AEE> 1SR QTR JAN 31 LOSS. Shr loss 30 cts vs loss 20 cts Net loss 1,553,000 vs loss 1,031,000 Revs 10.0 mln vs 8,696,000  
WOLVERINE WORLD WIDE INC <WWW> 4TH QTR LOSS. Shr loss six cts vs profit 55 cts Net loss 414,000 vs profit 3,936,000 Sales 109.4 mln vs 126.8 mln Year Shr loss 1.75 dlrs vs profit 55 cts Net loss 12,589,000 vs profit 3,965,000 Sales 341.7 mln vs 389.5 mln NOTE: Year results include 14.0 mln dlr restructuring charge in 2nd Qtr of 1986  
HURCO COMPANIES INC <HURC> FIRST QTR NET. Shr profit three cts vs loss 18 cts Net profit 124,000 vs loss 370,000 Rev 11.3 mln vs 11.7 mln Avg shares 3,673,000 vs 2,368,000  
SHARED MEDICAL SYSTEMS CORP <SMED> SETS PAYOUT. Qtly div 18 cts vs 18 cts prior Pay April 15 Record March 31  
WEIGH-TRONIX INC <WGHT> 4TH QTR NET. Shr 18 cts vs 16 cts Net 348,298 vs 308,927 Sales 4,166,750 vs 3,740,970 Year Shr 72 cts vs 52 cts Net 1,409,867 vs 1,020,096 Sales 16.5 mln vs 15.0 mln Avg shrs 1,974,529 vs 1,956,214  
MONARCH AVALON INC <MAHI> 3RD QTR JAN 31 LOSS. Shr loss 11 cts vs profit four cts Net loss 199,000 vs profit 81,000 Rev 1.9 mln vs 2.5 mln Nine months Shr loss 14 cts vs profit 15 cts Net loss 261,000 vs profit 273,000 Rev 6.4 mln vs 7.6 mln NOTE: Per share information adjusted for three-for-two stock split on January 31, 1986.  
BNL ANNOUNCES NET 1986 PROFITS IN BANK SECTOR. State-owned <Banca Nazionale del Lavoro BNL> said 1986 profits for its banking activities equalled 155 billion lire against 146 billion lire in 1985. Consolidated 1986 results for BNL, which also has interests in tourism, public works, industrial credit and other sectors, are expected to be announced later this year. The results for the banking sector are to be presented at a shareholders meeting scheduled for April 29.  
APPLIED DNA SYSTEMS INC <ADNA> 4TH QTR LOSS. Shr loss one ct vs nil Net loss 148,007 vs loss 58,863 Revs 198,919 vs 133,071 Avg shrs 7,476,433 vs 6,633,989 Year Shr loss three cts vs loss six cts Net loss 230,949 vs 424,719 Revs 666,626 vs 509,971 NOTE: Amounts include losses of a 50 pct owned scientific development affiliate, Analytical Biosystems Corp.  
JOHN LABATT LTD 3RD QTR SHR DILUTED 32 CTS VS 30 CTS.  JOHN LABATT LTD 3RD QTR SHR DILUTED 32 CTS VS 30 CTS  
LIFESTYLE RESTAURANTS INC <LIF> 1ST QTR JAN 24. Shr loss 31 cts vs loss eight cts Net loss 1,780,000 vs loss 449,000 Revs 13.9 mln vs 17.8 mln NOTE: Current 1st qtr loss included a gain of 870,000 dlrs and 70,000 dlrs from the sale of restaurant leases.  
SIERRA HEALTH SERVICES INC <SIE> 4TH QTR LOSS. Shr loss 52 cts vs profit six cts Net loss 2,943,000 vs profit 334,000 Revs 33.5 mln vs 18.5 mln Year Shr loss 1.57 dlrs vs profit 16 cts Net loss 8,781,000 vs profit 792,000 Revs 116.0 mln vs 56.5 mln  
FIRECOM INC <FRCM> 3RD QTR JAN 31 LOSS. Shr loss two cts vs profit two cts Net loss 104,874 vs profit 90,470 Sales 3,154,673 vs 1,666,313 Nine mths Shr loss one cent vs profit four cts Net loss 39,169 vs profit 159,784 Sales 8,250,003 vs 4,665,553  
WHEELING AND LAKE ERIE RAILWAY CO <WLE> DIV. Qtly div 1.4375 dlrs vs 1.4375 dlrs Pay May 1 Record April 3 Note: Dividend paid to all shareholders other than Norfolk Southern Corp's <NSC> Norfolk and Western Railway Co.  
GENERAL CINEMA CORP <GCN> CLASS B DIVIDEND. Qtly div class B 13.5 cts vs 13.5 cts Pay April 30 Record April 9  
<JOHN LABATT LTD> 3RD QTR JAN 31 NET. Shr 36 cts vs 31 cts Shr diluted 32 cts vs 30 cts Net 26,158,000 vs 21,798,000 Revs 1.05 billion vs 844.2 mln Nine mths Shr 1.28 dlrs vs 1.22 dlrs Shr diluted 1.15 dlrs vs 1.08 dlrs Net 92,779,000 vs 77,971,000 Revs 3.16 billion vs 2.70 billion Avg shrs 72.4 mln vs 64.0 mln  
AMERICAN CITY <AMBJ> SETS INITIAL PREFERRED DIV. American City Business Journals Inc said it declared an initial dividend of 15.4 cts a share on its recent issue of 1.6 mln shares of convertible exchangeable preferred stock. The dividend is payable March 31 to shareholders of record March 20, American City said, adding that future dividends will be paid on a quarterly basis. The preferred stock was issued on February 23.  
WEYERHAEUSER SAID IT SEES SIGNIFICANT INCREASES IN EARNINGS IN 1987.  WEYERHAEUSER SAID IT SEES SIGNIFICANT INCREASES IN EARNINGS IN 1987  
VARITY EXPECTS TO REPORT 4TH QTR AND FULL-YEAR 1986 LOSS.  VARITY EXPECTS TO REPORT 4TH QTR AND FULL-YEAR 1986 LOSS  
WEYERHAEUSER <WY> SEES HIGHER 1987 EARNINGS. Weyerhaeuser Co said it should have significant increases in earnings in 1987 and 1988 should be another very good year. Weyerhaeuser reported 1986 earnings of 276.7 mln dlrs, or 1.91 dlrs per share, on 5.65 billion dlrs in revenues. Anticipated improved cash flows will allow the company to invest and acquire much more aggressively than it has in the past few years, Weyerhaeuser also said. Weyerhaeuser, principally a lumber products company, said the forecast was made by the company's chief financial officer during a meeting of institutional investors in Tokyo. It also said its expects to see opportunities in the building products area, particularly in composite panels and in other engineered products directed toward specific, rather than commodity, end-use markets. But it said growth may be higher in added-value products, in financial services and in other diversified businesses. In addition, the company said rising product prices and demand for pulp and paper are reflected in all the major world markets, except in the case of some light-weighted paper grades where overcapacity remains a problem. Weyerhaeuser further stated that it has lowered its manufacturing cost structure and is obtaining significant productivity increases.  
LDBRINKMAN CORP <LDBC> 2ND QTR JAN 31 LOSS. Shr loss seven cts vs profit 12 cts Net loss 662,000 vs profit 1,520,000 Revs 59.1 mln vs 63.1 mln Six mths Shr profit 23 cts vs profit 20 cts Net profit 2,802,000 vs profit 2,543,000 Revs 138.5 mln vs 126.7 mln  
ACS ENTERPRISES INC <ACSE> 4TH QTR LOSS. Shr loss two cts vs profit three cts Net loss 80,333 vs profit 67,967 Revs 1,162,678 vs 1,009,731 Avg shrs 3,317,104 vs 2,494.049 year Shr loss 21 cts vs profit four cts Net loss 679,520 vs profit 96,724 Revs 4,191,540 vs 4,702,999 Avg shrs 3,242,641 vs 2,525,677 NOTES: Revenues exclude hospital television rental business sold Dec 29, 1986 1986 losses in both periods include gain of 530,000 dlrs on sale of discontinued business  
TO-FITNESS INC <TFIT> YEAR DEC 31 LOSS. Shr loss 89 cts vs loss 21 cts Net loss 3,030,548 vs loss 548,442 Revs 1,519,360 vs 1,081,915 Avg shrs 3,399,993 vs 2,725,425  
FIRSTIER INC <FRST> SETS REGULAR QUARTERLY DIV. Qtly div 27.5 cts vs 27.5 cts prior Pay March 31 Record March 25  
ZONDERVAN CORP <ZOND> 4TH QTR NET. Shr profit nil vs profit 38 cts Net profit 19,000 vs profit 1,239,000 Revs 31.7 mln vs 31.2 mln 12 mths Shr profit 52 cts vs loss three cts Net profit 2,173,000 vs loss 119,000 Revs 103.5 mln vs 98.6 mln  
UNIBANCORP INC <UBCP> REGULAR DIVIDEND SET. Qtly div 20 cts vs 20 cts previously Pay April 15 Record March 23  
SECOND NATIONAL BUILDING <SNBL> RAISES DIVIDEND. Qtrly seven cts vs six cts Pay April 20 Record March 31 NOTE: full name of company is Second National Building and Loan.  
BROADVIEW FINANCIAL CORP <BDVF> 4TH QTR LOSS. Shr loss 5.67 dlrs vs loss 5.17 dlrs Net loss 17 mln vs loss 15.4 mln Year Shr loss 12.42 dlrs vs loss 9.60 dlrs Net loss 37.0 mln vs loss 28.5 mln NOTE: 1986 4th qtr and year net includes 11.9 mln dlr and 43.8 mln dlr provision, respectively, for possible land and real estate losses. 1985 4th qtr and year net includes 5.1 mln dlr and 13.4 mln dlr provision, respectively, for possible losses.  
ENZO BIOCHEM INC <ENZO> 2ND QTR JAN 31 NET. Shr one ct vs three cts Net 123,000 vs 371,000 Revs 2,944,000 vs 2,138,000 Avg shrs 11.4 mln vs 11.6 mln Six mths Shr five cts vs six cts Net 531,000 vs 725,000 Revs 6,200,000 vs 4,128,000 Avg shrs 11.4 mln vs 11.6 mln  
VARITY <VAT> EXPECTS 4TH QTR, FULL-YEAR LOSS. Varity Corp, formerly Massey-Ferguson Ltd, said it expected to report on March 25 a loss for the fourth quarter and full-year ended January 31. A company spokesman said specific figures were unavailable. Varity posted a net profit of 3.9 mln U.S. dlrs for the previous fiscal year ended January 31, 1986 and a 3.3 mln dlr net profit for the previous fourth quarter. Its net loss for the nine months ended October 31 totaled 4.7 mln dlrs after a 19.7 mln dlr third quarter loss tied to strikes and plant shutdowns at its British and French operations. Varity also said it would seek shareholder approval at a special shareholders' meeting on April 9 to authorize a transfer of values to the contributed surplus account on its balance sheet from the stated capital account for common shares. The spokesman said the move would help raise company values required to pay dividends under Canadian law.  
<ANTHES INDUSTRIES INC> 4TH QTR NET. Oper shr 16 cts vs nine cts Oper net 2,281,000 vs 1,319,000 Revs not given Year Oper shr 13 cts vs six cts Oper net 2,635,000 vs 1,775,000 Revs 31.9 mln vs 31.7 mln Note: 1986 qtr excludes extraordinary loss of 1,155,000 dlrs or nine cts share, versus gain of 607,000 dlrs or five cts shr Note continued: 1986 year excludes extraordinary loss of 3,101,000 dlrs or 25 cts share, versus extraordinary loss of 265,000 dlrs or two cts share  
<AUTREX INC> 1ST QTR JANUARY 31 NET. Shr one cts vs two cts Net 50,000 vs 58,000 Revs 467,000 vs 760,000  
MLX CORP <MLXX> 4TH QTR LOSS. Shr loss 12 cts vs profit one ct Net loss 1,815,000 vs profit 65,000 Revs 59.9 mln vs 2,798,000 Avg shrs 15.8 mln vs 9,775,000 Year Shr loss 11 cts vs loss three cts Net loss 1,217,000 vs loss 324,000 Revs 83.3 mln vs 3,195,000 Avg shrs 11.2 mln vs 9,775,000  
LIFESTYLE RESTAURANTS <LIF> ADJUSTS REVENUES. Lifestyle Restaurants Inc said revenues for the first quarter ended January 24, 1985, were 17.5 mln dlrs and not the 17.8 mln dlrs it had reported earlier. The company also said a note attached to its earnings concerning a gain in 1986 on certain sales was incorrect and should be disregarded.  
MICRON TECHNOLOGY <DRAM> SEES 2ND QTR LOSS. Micron Technology Inc said it expects to record a net loss of about 11 mln dlrs in the second quarter compared to a loss of 9.7 mln dlrs in the first quarter and 9.8 mln dlrs in the year-ago second quarter. Revenues in the quarter ended March five increased to about 20.4 mln dlrs from 18.8 mln in the preceeding quarter and 9.4 mln dlrs in the year-ago quarter. The company makes semiconductors, memory components and related products.  
<AGRA INDUSTRIES LTD> SIX MTHS JAN 31 NET. Oper shr 35 cts vs 34 cts Oper net 2,313,000 vs 1,646,000 Revs 100.1 mln vs 77.3 mln Note: 1986 net excludes extraordinary loss of 294,000 dlrs or four cts vs shr vs yr-ago loss of 579,000 dlrs or 12 cts shr. 1986 net includes non-cash loss of 1,436,000 dlrs or 22 cts shr vs yr-ago loss of 1,922,000 dlrs or 39 cts shr from depreciation and amortization allowances on U.S. cable TV operation. Fewer shrs outstanding.  
CITROEN EXPECTS HIGHER PROFITS, HELPED BY AX. Automobiles Citroen expects rising sales of its new AX compact car to help boost profits significantly this year, continuing a financial recovery after six straight years of losses, president Jacques Calvet said. Speaking to reporters during weekend trials for the new AX sports model, he said: "All the budgetary forecasts that we have been able to make ... Show a relatively significant improvement in 1987, compared with 1986," he added. Citroen, part of the private Peugeot SA <PEUP.PA> group, increased its share of the French new car market to 13.7 pct in first two months 1987 from 12.1 pct a year earlier. It is aiming for an average 12.8 pct share throughout the year after 11.7 pct in 1986. The firm believes it is on target to raise its share of the European market, excluding France, to 3.2 pct this year from 2.9 pct in 1986. "Our first problem is to produce enough vehicles to meet the demand," Calvet said. "This is a relatively new problem for us." Citroen lost close to two billion francs in 1984 but cut the deficit to 400 mln in 1985, helped by moves to modernise its range and improve productivity. Calvet indicated last December he expected Citroen's 1986 profit to be between 250 and 500 million francs. This weekend he said that those profit estimates "remain about the same -- perhaps even a little more optimistic." Some of this optimism is due to the early success of the AX, launched on the French market last October. It will be available throughout most of western Europe within four months. The car has registered just over 20,000 sales. It is being built at Citroen's large plant at Aulnay-sous- Bois in northern Paris, as well as at Rennes in Brittany and Vigo in Spain, with production just reaching target level of 1,000 cars a day. The car, which Citroen markets as an intermediate model between its long-running 2CV and the Visa, is designed to compete with the Renault 5, Volkswagen Polo and Opel Corsa. The AX had built up its market share in France to around four pct last month. Calvet said: "Our hope is that once the AX is fully developed, we will have between 6.5 and seven per cent of the national market."  
<THE NATIONAL BANK OF NEW ZEALAND LTD>. Year to December 31, 1986 Net profit 78 mln N.Z. Dlrs vs 45 mln Pre-tax profit 147 mln vs 88 mln Total assets 7.7 billion vs 6.4 billion Notes - The company is 100 pct owned by Lloyds Bank Plc <LLOY.L>. Results include for the time first a pre-tax profit, of 11 mln N.Z. Dlrs, from Australian unit <Lloyds Bank NZA Ltd>.  
JAPAN BUSINESS DECLINE SEEN BOTTOMING OUT. The extended decline in Japan's overall business performance was likely to bottom out in the current January-March quarter, the Finance Ministry said. Improved corporate earnings and better prospects for the stability of the yen had made companies more optimistic, it said after carrying out a quarterly survey. The survey, conducted in February, was based on questionnaires returned by 8,328 large and small firms in all sectors except the finance and insurance industries. The survey said overall corporate earnings were expected to turn positive with an estimated 0.4 pct year on year increase in the second half of fiscal 1986 ending on March 31 after a 5.4 pct decrease in the first half. Corporate earnings will grow further in the first half of fiscal 1987, rising an estimated 10.7 pct, it added. Manufacturers' earnings, hit hard by the yen's steady rise against the dollar, will rise 7.7 pct in first-half fiscal 1987 after falling 10.7 pct in the second half of fiscal 1986, it said. Overall earnings of non-manufacturing companies will rise 11.8 pct year on year in the first half of fiscal 1987 after growing 9.8 pct in the second half of fiscal 1986, the survey said. It said this figure was bolstered by profits of firms such as electric power and gas companies which have benefitted from the yen's appreciation.  
PEARSON PLC <PSON.L> YR ENDED DEC 31. Shr 37.4p vs 30p. Final div 7p, making 12p vs 10p. Pre-tax profit 121.1 mln stg vs 109.3 mln. Net profit before minorities 76.6 mln stg vs 62.8 mln. Turnover 952.6 mln vs 970.1 mln. Pre-interest profit 132.1 mln vs 124.6 mln. Net interest 11 mln vs 15.3 mln. Tax 44.5 mln vs 46.5 mln. Minority interests 3.1 mln vs 5.2 mln. Extraordinary debit 9.1 mln vs credit 11.5 mln. Note - Extraordinary debit reflected full provision for discontinuing the Financial Times's printing operations at Bracken House in 1988, partly offset by gains on disposals.  
<POCLAIN> OFFERS PAR RIGHTS ISSUE. French machinery maker <Poclain>, 40 pct owned by <Tenneco Inc>, said it will raise its capital to 791 mln francs from 91 mln by a 100 for 13 rights offering to shareholders priced at par of 10 francs a share. The offer, between March 25 and April 13, is the second stage of a capital restructuring plan announced in December under which Tenneco will become Poclain's majority shareholder. In the first stage Poclain reduced its capital to 91 mln from 455 mln by reducing the nominal value of its shares to 10 francs from 50. Poclain traded Friday on the Paris Bourse at 38.20 francs.  
CIE BANCAIRE IN ONE-FOR-FIVE BONUS SHARE ISSUE. <Cie Bancaire>, a subsidiary of recently privatised banking group Cie Financiere de Paribas <PARI.PA>, said it is issuing 2.35 mln new 100 francs nominal shares on the basis of one for five already held. The operation will begin on March 31, a spokesman said. Cie Bancaire also said it has increased its capital to 1.41 billion francs from 1.17 billion by the incorporation of 237.74 mln francs of reserves.  
PEARSON CONCENTRATES ON FOUR SECTORS. Pearson Plc <PSON.L> said the recent sale of its Fairey Engineering companies, in a 51.5 mln stg management buy-out, was part of its policy of concentrating on four key sectors. In a statement with its 1986 results, the company said its information and entertainments sector's Financial Times, FT, newspaper had record sales and profits. The FT is subject to a 70 mln stg investment programme, with the printing and publishing operation moving to a new plant in the London docklands next year. Its other key sectors are merchant banking, oil and china. Commenting on its Camco Inc oil service subsidiary, Pearson said it believes the oil business setback is only temporary. The group has been acquiring oil properties in both the U.S. And Britain which will begin to make a significant impact on profits in the 1990s. Far East operations of fine china subsidiary Royal Doulton Ltd are being expanded in the wake of record recent sales in Japan, it added. Pearson reported 1986 pre-tax profit of 121.1 mln stg, up from 109.3 mln in 1985. Turnover fell to 953 mln from 970 mln.  
TRANSPORT DEVELOPMENT GROUP PLC <TDGL.L> 1986 YEAR. Shr 17.15p vs 12.37p Final dividend 5.5p, making 7.5p vs 6.2p Pre-tax profit 39.4 mln stg vs 29.7 mln. Turnover 543.2 mln stg vs 481.5 mln Operating profit 48.2 mln stg vs 38.2 mln Net interest 8.9 mln vs 8.6 mln Tax 14.3 mln vs 11.2 mln Profit after tax 25.1 mln vs 18.4 mln Minority interest 300,000 vs 615,000 Net tangible assets per ordinary shr 111.3p vs 101.6p  
MAI PLC <MLLL.L> SIX MONTHS TO DECEMBER. Shr 25.7p vs 21.5p Div 6p vs 4p Pretax profit 24.13 mln stg vs 16.40 mln Net after tax 15.08 mln vs 10.52 Extraordinary credit 8.71 mln stg vs nil Turnover 140.8 mln vs 96.55 Note - The extraordinary item comprises profit less losses on the sale of certain subsidiaries less related tax and minority interests. Pretax profit comprises - Securities and money broking 15.44 mln stg vs 10.75 mln Personal financial services 3.6 mln vs 735,000 stg Media 3.74 mln vs 3.16 mln Market reserch 912,000 stg vs 732,000 Net interest 438,000 vs 1.03 mln  
ALUSUISSE SHARES FALL AFTER CAPITAL CUT NEWS. Bearer shares of Schweizerische Aluminium AG <ALUZ.Z> (Alusuisse) fell sharply as trading resumed after a one-day suspension on Friday, when the firm disclosed plans for a capital cut. The bearers, held mainly by foreign investors, dropped 30 Swiss francs to 460. But volume was not particularly heavy. Registered shares were less affected, slipping five to 165. The participation certificates fell to 43 francs from 45.50. Alusuisse made a net loss of 688 mln francs, after a restated 756 mln loss in 1985, and set a 50 pct capital cut. The company said it could break even this year.  
BSI RAISING 50 MLN SWISS FRANCS VIA RIGHTS ISSUE. Banca della Svizzera Italiana <BISZ.Z> said it planned a one-for-12 rights issue at 300 pct of nominal value to raise about 50 mln francs new capital. The rights issue would have a theoretical value to shareholders of 140 Swiss francs per bearer share and 45 per registered share. BSI was also seeking shareholder authorization for 200,000 new participation certificates of a nominal value of 100 francs without rights for shareholders, to back future convertible or warrant bonds or for other purposes. Existing 500-franc "B" tranche certificates would be split five-for-one. The split would improve the marketability of the existing certificates, chief executive Giorgio Ghiringhelli told a news conference. The new bearer shares would be priced at 1,500 francs, compared with a closing price last Friday of 3,325 on the Zurich Stock Exchange, while the registered shares would be issued at 300 francs against a market price of 900.  
ZIM ENERGY <ZIMR> TO SELL SHARES PRIVATELY. ZIM Energy Corp said it has entered into an agreement for a group consisting of <Strategy and Development Inc>, <Norsk Vikingolje A/S> of Oslo and MIS Gas Corp -- which already owns one third of ZIM -- to buy 15 to 20 mln new common shares at 20 cts each in association with <Polo Energy Corp> and <Jaguar Petroleum Corp>. The company said the investor group also bought about 6.3 mln shares from ZIM management. It said James Mitchell, William Richardson and Steven Duin have resigned as officers and directors. ZIM said Chemclear Inc <CMCL> has unilaterally canceled an agreement to merge with ZIM, and ZIM's board is studying the possiblity of a claim against Chemclear. The company said it expects to report a loss for the year of about 3,125,000 dlrs due to lower oil and natural gas prices, unsuccessful well workover programs and excessive overhead and corporate expenses. It said it plans a dramatic reduction in overhead costs that should improve results. The company said Michel Billard has been named chairman and Robert Berckmans has been named president and chief executive, and Berckmans and two others have joined the board. ZIM said it has agreed to acquire the remaining interest in its Buccaneer and Blue Dolphin Pipeline affiliates for about one mln dlrs in cash and stock.  It gave no further details.  
BLUEFIELD SUPPLY <BFLD> IN LIQUIDATING PAYOUT. Bluefield Supply Co said its board declared its second liquidating dividend of 1.71 dlrs per share, payable March 16 to shareholders of record March 13. The company paid an initial liquidating dividend of 15.75 dlrs per share on January Eight.  
BERGEN BRUNSWIG CORP <BBCA> 2ND QTR FEB 28 NET. Shr 33 cts vs 48 cts Shr diluted 33 cts vs 44 cts Net 4,435,000 vs 6,410,000 Revs 839.3 mln vs 751.8 mln 1st half Shr 55 cts vs 94 cts Shr diluted 55 cts vs 88 cts Net 7,374,000 vs 12.6 mln Revs 1.68 billion vs 1.51 billion  
JOULE' INC <JOUL> SETS STOCK SPLIT. Joule' Inc said its board declared a three-for-two stock split, payable April 30, record March 31.  
AMERICAN BUILDING MAINTENANCE <ABM> 1ST QTR NET. Shr 35 cts vs 44 cts Net 1,311,000 vs 1,619,000 Revs 125.2 mln vs 117.2 mln NOTE: American Building Maintenance Industries Inc.  
NEW WORLD PICTURES LTD <NWP> 4TH QTR NET. Shr 32 cts vs 21 cts Net 4,717,000 vs 2,587,000 Revs 72.9 mln vs 37.9 mln Avg shrs 14.7 mln vs 12.6 mln Year Oper shr 75 cts vs 41 cts Oper net 10.7 mln vs 4,642,000 Revs 188.9 mln vs 106.6 mln Avg shrs 14.2 mln vs 1.4 mln NOTE: 1985 year net excludes 495,000 dlr tax credit.  
LOWRANCE ELECTRONICS INC <LEIX> 2ND QTR JAN 31. Shr profit 17 cts vs loss two cts Net profit 520,000 vs loss 51,000 Sales 11.1 mln vs 6,897,000 1st half Shr profit 34 cts vs profit 12 cts Net profit 951,000 vs profit 320,000 Sales 20.6 mln vs 14.9 mln  
COMMTRON CORP <CMR> 2ND QTR FEB 28 NET. Shr 16 cts vs 22 cts Net 1,574,000 vs 1,725,000 Sales 104.2 mln vs 116.0 mln Avg shrs 10.1 mln vs eight mln 1st half Shr 37 cts vs 37 cts Net 3,675,000 vs 2,925,000 Sales 244.5 mln vs 230.6 mln Avg shrs 10.0 mln vs eight mln  
WHOLESALE CLUB INC <WHLS> 4TH QTR JAN 31 NET. Shr profit two cts vs loss 16 cts Net profit 558,000 vs loss 580,000 Sales 66.2 mln vs 29.5 mln Avg shrs 4,476,000 vs 3,615,000 Year Shr loss 61 cts vs loss 79 cts Net loss 1,760,000 vs loss 2,180,000 Sales 158.4 mln vs 76.3 mln Avg shrs 4,475,000 vs 2,751,000  
MSA REALTY CORP <SSS> 4TH QTR NET. Shr profit four cts vs loss two cts Net profit 247,970 vs loss 57,341 Revs 2,393,622 vs 2,627,612 Avg shrs 5,958,423 vs 2,440,100 Year Shr profit 71 cts vs loss 35 cts Net profit 3,213,310 vs loss 849,180 Revs 14,571,434 vs 9,099,767 Avg shrs 6,177,666 vs 2,440,083 NOTE: 1986 earnings include a loss from carryforward of investment tax credits of 85,000 dlrs in the quarter and a gain of 250,000 dlrs, or four cts a share for the year  
EVEREST AND JENNINGS INTERNATIONAL <EJA> 4TH QTR. Shr profit nine cts vs loss 58 cts Net profit 738,000 vs loss 4,643,000 Sales 50.9 mln vs 43.8 mln Year Shr profit 1.50 dlrs vs loss 61 cts Net profit 12.1 mln vs loss 4,875,000 Sales 195.3 mln vs 174.2 mln NOTE: 1985 net both periods includes 4,952,000 dlr provision for plant closing. 1985 net includes gains on sale of West Los Angeles real estate of 650,000 dlrs in quarter and 1,471,000 dlrs in year. 1986 year net includes gains on sale of West Los Angeles real estate of 9,903,000 dlrs.  
ENDOTRONICS SEES HEAVY LOSSES IN QTR FROM WITHDRAWAL OF JAPAN DISTRIBUTOR.  ENDOTRONICS SEES HEAVY LOSSES IN QTR FROM WITHDRAWAL OF JAPAN DISTRIBUTOR  
ALPINE GROUP INC <AGI> 3RD QTR JAN 31 NET. Shr profit seven cts vs loss five cts Net profit 303,000 vs loss 205,000 Revs 16,945,000 vs 7,695,000 Nine mths Shr profit 27 cts vs profit 19 cts Net profit 1,161,000 vs profit 787,000 Revs 39.2 mln vs 22.8 mln NOTE: Profits include gains of 130,000 dlrs, or three cts a share, in quarter and 490,000 dlrs, or 11 cts a share, vs 52,000 dlrs, or one cent a share, in nine months from tax loss carryforward  
BSI SAYS EXPECTS ANOTHER GOOD YEAR IN 1987. Banca della Svizzera Italiana <BISZ.Z> said it expected business to be good again this year after 1986's 15.2 pct increase in net profit to 42 mln Swiss francs. Chief Executive Giorgio Ghiringhelli told reporters he expected almost all important sectors to expand well in 1987. An important exception would be its securities business, which would grow more slowly. Ghiringhelli also said the bank planned to convert its representation in London into a subsidiary at the end of this year and further expand activities at its New York subsidiary, particularly in private banking.  
DWG CORP <DWG> 3RD QTR JAN 31 NET. Oper shr profit 17 cts vs profit 10 cts Oper net profit 5,146,000 vs profit 2,691,000 Revs 269.5 mln vs 274.4 mln Avg shrs 20.5 mln vs 17.0 mln Nine mths Oper shr profit 14 cts vs loss 45 cts Oper net profit 4,131,000 vs loss 7,148,000 Revs 802.8 mln vs 766.0 mln Avg shrs 20.4 mln vs 16.9 mln NOTE: Net excludes discontinued operations loss 1,667,000 dlrs vs profit 42,000 dlrs in quarter and loss 2,123,000 dlrs vs profit 1,334,000 dlrs in nine mths. Net excludes gains on insurance recovery of 54,000 dlrs vs 91,000 dlrs in quarter and 1,289,000 dlrs vs 218,000 dlrs in nine mths. Prior year net excludes 1,103,000 dlr loss from change in accounting for textiles inventories. Prior year results for discontinuance of apparel segment and change in accounting for textile inventories. Share adjusted for stock dividends. Net includes pretax unrealized loss provision recoveries related to marketable securities of 580,000 dlrs vs 824,000 dlrs in quarter and recovery 640,000 dlrs vs provision 366,000 dlrs in nine mths. Prior nine mths net includes pretax gain on sale of marketable securities of 493,000 dlrs. Net includes tax credits 5,738,000 dlrs vs 494,000 dlrs in quarter and credit 4,194,000 dlrs vs provision 11.2 mln dlrs in nine mths.  
<BRALORNE RESOURCES LTD> YEAR LOSS. Shr loss 2.70 dlrs vs loss 25 cts Net loss 60.6 mln vs loss 3,122,000 Revs 101.0 mln vs 167.7 mln Note: 1986 includes charge of 44.1 mln dlrs due to writedown of oil and gas interests, writeoff of goodwill and patents, provision against disposal of surplus inventory, losses on disposition of operating units and writedown of assets held for disposal.  
H AND R BLOCK <HRB> SEES GAINS FROM TAX REFORM. With the April 15 tax return deadline less than a month away, confused taxpayers will be converging on H and R Block Inc's offices to interpret the new tax codes. Financial results for the nation's largest tax preparer are expected to be good in fiscal 1987 but next year could be a "bonanza," analysts say. "For the short term the key word is confusion, Block Vice President Tom Bloch said in an interview. "When Congress drastically changes laws, confusion results and tax preparers benefit," Bloch said. "Next year, when taxpayers take the new forms and place them side by side to compare them, more people will throw their hands up and say 'I'm going to get help,'" he said. "Tax forms will look very different next year," he added. Kidder Peabody analyst Herbert Buchbinder expects Block's fiscal 1987 year (to end April 30) to show good gains over fiscal 1986 earnings of 60.1 mln dlrs or 2.41 dlrs a share on revenues of 606.7 mln dlrs. He estimates Block's fiscal 1987 earnings at 2.75 to 2.80 dlrs. "Next year, Block could have a bonanza," Buchbinder said. Based on estimates of a larger work force, Block could show a gain of more than five pct in tax forms prepared, he said. In the 1986 tax season, Block prepared 9,215,300 U.S. tax returns, up 1.5 pct over the previous year. The Internal Revenue Service estimates about 100 mln individual income tax returns will be filed for the 1987 tax season, up from last year's 94 mln forms. Professional tax preparers accounted for just over 43 million forms, according to the IRS. For the longer term, while confusion will continue to bring clients into Block's 8,866 tax preparation offices worldwide, there are some changes in the act that will have a negative effect, Bloch conceded. Certain changes in filing requirements will shorten the tax return, and in some cases, simplify the form, he noted. In addition, some low income wage earners will be taken off the tax rolls, he said. Block is currently analyzing its price structure to try to offset some of the negatives. Last tax season, the average cost for each return in the U.S. amounted to 48.05 dlrs and 45.73 dlrs worldwide, Bloch said. This tax season, rates will be up about three or four pct, in line with the inflation rate, he said. Block expects "some expansion" this tax season of its electronic filing system which directly feeds into the IRS and can speed up the refund process. Block can choose where and by how much it wants to expand into the seven cities made available for the direct filing by the IRS, Bloch noted. The IRS estimates about 90,000 returns will be directly filed this tax season, up from the 26,000 returns injected in the 1986 tax season. First Kansas City analyst Jonathan Braatz said that Block will benefit greatly from lower tax rates in fiscal 1988. Braatz expects Block's advertising budget to be about the same as last year which will be helped a bit by lower costs for television ads. "They may get a little more bang for their buck," he said. He estimates Block has about 150 mln dlrs cash on its balance sheet sheet, and says if interest rates rise it could be of great benefit to them.  
AUSIMONT COMPO NV <AUS> RAISES QUARTERLY. Qtly div eight cts vs five cts prior Pay April 24 Record April Three  
MARION LABS <MKC> VOTES SPLIT, DIVIDEND HIKE. Marion Laboratories Inc said its board declared a two-for-one common stock split in the form of a dividend, with distribution April 21, record March 25. The board also said it intends to increase the regular quarterly dividend by 43 pct, to five cts a share, reflecting the split. It said the increase will be declared at the May 1987 board meeting and reflected in regular payments beginning in July 1987.  
DECORATOR INDUSTRIES INC <DII> 4TH QTR NET. Ended Jan three Shr profit five cts vs NA Net profit 58,088 vs loss 279,718 Revs 6,310,841 vs 5,468,893 Year Shr profit 12 cts vs loss 74 cts Net profit 126,321 vs loss 773,090 Revs 23.1 mln vs 19.1 mln NOTE: Loss per share not given for quarter.  
MCCORMICK AND CO INC <MCCRK> 1ST QTR NET. Qtr ends Feb 28 Shr 37 cts vs 35 cts Net 4,346,000 vs 4,202,000 Revs 232,006,000 vs 223,151,000  
VALUE LINE INC <VALU> 3RD QTR JAN 31. Shr 52 cts vs 25 cts Net 5,154,000 vs 2,496,000 Revs 17.7 mln vs 14.4 mln Nine months Shr 1.16 dlrs vs 70 cts Net 11.5 mln seven mln Revs 50.3 mln vs 41.2 mln NOTE: 1987 periods include pretax investment income of 2.9 mln dlrs in capital gains distributions from mutual fund investment.  
HONGKONG BANK OF CANADA 1ST QTR JAN 31 NET. Net 3.1 mln vs not given Note: results not comparable with last year due to November 1986 acquisition of Bank of British Columbia. Subsidiary of <Hongkong and Shanghai Banking Corp>  
SALANT CORP <QSLT> 4TH QTR NOV 29 NET. Oper shr profit 45 cts vs profit 56 cts Oper net profit 1,492,000 vs profit 1,842,000 Sales 36.5 mln vs 38.5 mln Year Oper shr profit 48 cts vs loss 2.44 dlrs Oper net profit 1,596,000 vs loss 8,084,000 Sales 131.1 mln vs 144.5 mln NOTE: 1986 year net includes pretax provision for loss on sale of subsidiary of 1,600,000 dlrs. 1985 year net includes pretax loss 6,600,000 dlrs from plant closing provision. 1986 net excludes tax credits of 1,295,000 dlrs in quarter and 2,712,000 dlrs in year. 1986 net both periods excludes charge 9,400,000 dlrs for estimated settlement and expenses connected with Chapter 11 bankruptcy.  
SALANT <QSLT> FILES REORGANIZATION PLAN. Salant Corp said it and its Thomson Co Inc and Obion Co Inc subsidiaries have filed a joint reorganization plan with the U.S. Bankruptcy Court and expect to emerge from Chapter 11 bankruptcy in the near future. The company said a hearing on the adequacy of the associated disclosure plan is scheduled for April Nine and completion of the plan is subject to approval by creditors, equity security holders and the bankruptcy court. Salant said it has reached agreement for Ray W. williams to continue as president and chief executive officer for five years from the effective date of the reorganization plan and has substantially concluded talks for a new 15 mln dlr unsecured credit, effective the same date. The company said the committee of its unsecured creditgors and the committee of its equity security holders have approved the terms of the plan.  As previously announced, creditors will receive 450 mln dlrs in cash, 500 dlrs of 13-1/4 pct senior subordinated debentures and four common shares for each 1,000 dlrsd of allowed unsecured claims. Salant today reported earnings for the year ended November 29 of 1,596,000 dlrs, after a 1,600,000 dlr pretax provision for loss on the sale of a subsidiary but before a 9,400,000 dlr post-tax charge attributable to costs and expenses of Chapter 11 and the settlement of pre-Chapter 11 claims, as well as a 2,712,000 dlr tax credit. A year before, it lost 8,084,000 dlrs after a 6,600,000 dlr pretax provision for plant closings.  
ANALOGIC CORP <ALOG> 2ND QTR JAN 31 NET. Shr 11 cts vs 13 cts Net 1,965,577 vs 2,474,357 Revs 38.3 mln vs 34.7 mln 1st half Shr 61 cts vs 22 cts Net 11.3 mln vs 4,132,129 Revs 84.4 mln vs 66.2 mln  
ENDOTRONICS <ENDO> EXPECTS LOSS FOR YEAR. Endotronics Inc said it expects to incur "substantial losses" for the second quarter ending March 31 and fiscal year ending Sept 30, 1987. As one factor behind the anticipated loss, Endotronics cited a dispute by one of its Japanese distributors, <Yamaha Inc>, over payment of a 3,686,000 dlr promissory note. In a Form 8-K filing with the Securities and Exchange Commission, Endotronics said the note was for overdue accounts receivable from sales of instruments to Yamaha and another Japanese distributor during the company's 1986 fiscal year. Endotronics said at its present reduced level of operations it will exhaust all currently available cash and credit facilities in early May 1987. It said this assumes full use of the remaining 1,250,000 dlrs available under a line of credit from Celanese Corp, which requires approval of Celanese Corp <CZ>. The company said its ability to obtain funding was adversely affected by a suit filed March 4 by two of its shareholders seeking to represent a class of holders against three officers of Endotronics. Endotronics said the complaint against it alleges violations of the federal securities laws in connection with statements made in the company's annual and quarterly reports. The company also said the Securities Division of the Minnesota Department of Commerce is conducting an inquiry into the company's Japanese sales for fiscal 1986 and trading by insiders and brokers in the company's common shares. It said similar inquiries are being conducted by the Securities and Exchange Commission. The investigations will hurt the company's ability to obtain funding, it said. As a result of the dispute over payment of the promissory note, the law suit challenging its financial data and the various investigations concerning insider trading, the company said it no longer expects that anticipated declines in instrument sales in Japan in fiscal 1987 will be offset by increased instrument sales in other foreign countries and the United States.  
LOWRANCE ELECTRONICS <LEIX> SEES ORDERS OFF. Lowrance Electronics Inc said results from operations in the third and fourth quarter may not be comparable to the first and second quarters, which were strong because of orders for new sonar equipment. For the six months ended Jan 31, the company reported net income almost tripled to 951,000 dlrs or 34 cts a share as sales rose 38 pct to 20.6 mln dlrs. The company, which went public Dec 23, also said it expects to be able to fill back orders from the first two quarters because of improved supply of computer chip components.  
CAPITOL BANCORP <CAPB> TO RESTATE NET TO LOSS. Capitol Bancorp said it expects to restate its results for 1986 to a loss of about one mln dlrs due to a reclassification of loans recommended by auditor Ernst and Whinney. The company said the restatement also reflects a substantial increase in reserves of its principal subsidiary, Capitol Bank and Trust Co. It said it expects to earn 2,250,000 to 2,750,000 dlrs for the first quarter of 1987. Capitol said to maintain an adequate capital ratio it will seek additional equity capital in the near future. It also said it has delayed its annual meeting until May due to the restatement of annual earnings. Capitol said its board raised the quarterly dividend to 23 cts from 22 cts a share, payable April 28, record MArch 31. The company originally reported 1986 earnings of 7,700,000 dlrs.  It earned 3,848,000 dlrs in last year's first quarter. The annual meeting had been scheduled for the second week of April.  
<AMERICAN HOECHST CORP> YEAR NET. Net 38 mln vs 5.7 mln Revs 1.71 billion vs 1.69 billion NOTE: Fully owned subsidiary of Hoechst AG.  
LEVITT CORP <LVT> 4TH QTR NET. Oper shr 42 cts vs 11 cts Oper net 1,433,000 vs 382,000 Revs 38.6 mln vs 20.1 mln Year Oper shr 60 cts vs 49 cts Oper net 2,033,000 vs 1,682,000 Revs 90.4 mln vs 73.0 mln NOTE: 1985 4th qtr and year excludes extraordinary credit of 349,000 dlrs or 11 cts per share.  
TBG HOLDINGS N.V. <TGBN.AS> 1986 YEAR NET. Net profit 34 mln dlrs vs 43 mln dlrs. Turnover 1.82 billion dlrs vs 1.83 billion. NOTE: Company lowered to nine pct from 13.5 pct interest rate on outstanding subordinated loan for period august 1, 1987, to July 31, 1988. TBG, formerly known as <Thyssen-Bornemisza Group>, reports in dlrs since December 1, 1984, the start of the 1985 financial year. TBG said the decline in profits was mainly caused by losses in container rental activities.  
STANDARD PRODUCTS CO <STD> RAISES QUARTERLY. Qtly div 20 cts vs 16 cts prior Pay April 24 Record April 10  
AARON SPELLING PRODUCTIONS INC <SP> 2ND QTR NET. Jan 31 end Shr 31 cts vs 44 cts Net 5,705,000 vs 8,101,000 Revs 50.6 mln vs 67.2 mln 1st half Shr 63 cts vs 71 cts Net 11.6 mln vs 13.2 mln Revs 80.9 mln vs 105.2 mln NOTE: Current half net includes 750,000 dlr charge from reorganization.  
COOPER LASERSONICS INC <ZAPS> 1ST QTR LOSS. Period ended January 31. Shr loss 22 cts vs profit one ct Net loss 4,700,000 vs profit 150,000 Sales 15.0 mln vs 16.7 mln Avg shrs 21,538,000 vs 19,259,000 Note: Prior qtr figures include gain of 1.1 mln dlrs, or six cts per share, from discontinued operations.  
DIVERSIFIED INDUSTRIES <DEI> 1ST QTR OPER NET. Period ended Jan 31 Oper shr two cts vs eight cts Oper net 96,000 vs 449,000 Sales 37.6 mln vs 35.8 mln Avg shrs 5,317,900 vs 5,689,277 NOTE: Full name is Diversified Industries Inc Earnings exclude gains from utilization of tax loss carryforwards of 62,000 dlrs, or one ct a share vs 358,000 dlrs, or six cts a share  
GOLDEN NUGGET INC <GNG> 4TH QTR LOSS. Oper shr loss 20 cts vs loss 19 cts Oper net loss 7,001,000 vs loss 6,761,000 Revs 93.0 mln vs 90.6 mln Avg shrs 35.2 mln vs 34.8 mln Year Oper shr profit 10 cts vs profit 65 cts Oper net profit 3,419,000 vs profit 22.6 mln Revs 381.7 mln vs 385.0 mln Avg shrs 33.8 mln vs 34.9 mln NOTE: Net excludes debt retirement gain 2,001,000 dlrs vs loss 316,000 dlrs in quarter and losses 15.9 mln dlrs vs 1,714,000 dlrs in year. 1986 net includes tax crdits of 2,942,000 dlrs in quarter and 2,729,000 dlrs in year.  
OPPENHEIMER INDUSTRIES <OPP> SEES YEAR LOSS. Oppenheimer Industries Inc said it expects to report a loss for the year ended January 31 of about 980,000 dlrs, compared with a profit of 211,074 dlrs a year before. The company blamed the loss on the continuing depression in agriculture, the discontinuance of several programs due to the passage if the 1986 tax bill and the failure to close the sale of four ranches in the California Carrizo Plains during the year as expected. The company said the prospective purchaser forfieted a 500,000 dlr deposit  It said it is in talks on a new contract.  
LUBY'S CAFETERIAS INC <LUB> 2ND QTR FEB 28 NET. Shr 31 cts vs 26 cts Net 5,645,000 vs 4,737,000 Sales 55.2 mln vs 50.6 mln 1st half Shr 60 cts vs 53 cts Net 10.9 mln vs 9,659,000 Sales 110.4 mln vs 102.2 mln NOTE: Current year net both periods includes 474,000 dlr gain from land sale. Share adjusted for three-for-two split in August 1986.  
TESCO FORECASTS PROFITS RISE THIS YEAR. Tesco Plc <TSCO.L> said in a statement it expects pre-tax profits of 166 mln stg for the year ending February 28, 1987, before nine mln stg of net property profits. This compares with 122.9 mln stg pretax profits and a net 8.1 mln on property sales the previous year. It said the forecast was in its formal offer document sent to <Hillards Plc> shareholders today. On March 10 Tesco launched a 151.4 mln stg bid for Hillards. The offer, of 13 new Tesco ordinary shares for every 20 Hillards ordinary shares, valued each Hillards ordinary share at 305.5p.  
BUSINESS COMPUTER <BCSI> HAD 4TH QUARTER PROFIT. Business Computer Solutions Inc said it expects to report a profit for the fourth quarter ended February 28 -- its first quarterly profit ever -- of about 175,000 dlrs on revenues of about 750,000 dlrs. A year before, it lost 217,852 dlrs on sales of 469,274 dlrs.  The company attributed the improved results to increased purchases of its ZFOUR language and development environment for computer software. Business Computer said it expects to report a full-year loss of about 500,000 dlrs on sales of about 2,100,000 dlrs. Last year it lost 1,079,000 dlrs on revenues of 720,000 dlrs.  
J.W. MAYS INC <MAYS> 2ND QTR JAN 31 NET. Shr 2.27 dlrs vs 74 cts Net 4,945,989 vs 1,612,624 Revs 28.2 mln vs 27.9 mln Six mths Shr 1.57 dlrs vs three cts Net 3,417,659 vs 73,614 Revs 47.0 mln vs 46.8 mln NOTE: Current periods include pretax gain of 4.3 mln dlrs from sale of leasehold of Glen Oaks store in Queens, N.Y. and gain of 1.9 mln dlrs from benefit of tax loss carryforwards. Year-ago six mths includes gain of 95,988 dlrs from refund of prior year's real estate taxes.  
CIRCUS CIRCUS ENTERPRISES <CIR> 4TH QTR NET. Oper shr 16 cts vs 14 cts Oper net 5,818,000 vs 5,284,000 Revs 88.2 mln vs 69.7 mln Year Oper shr 96 cts vs one dlr Oper net 36,101,000 vs 37,375,000 Revs 374.0 mln vs 307.0 mln Note: Current qtr and year figures exclude extraordinary losses on early debt retirement of 1.7 mln dlrs, or five cts per share and 7.9 mln dlrs, or 21 cts per share, respectively. Full name Circus Circus Enterprises Inc.  
NATIONAL FUEL GAS CO <NFG> SETS MAIL DATE. National Fuel Gas Co said its mail date for its previously-announced two-for-one stock split is June 19, 1987. The company, which announced the split last week, had said the record date for the split is May 29, 1987.  
TOFUTTI BRANDS <TOF> SEES PROFIT FOR NEW YEAR. Tofutti Brands Inc said it is changing its fiscal year to a calendar year from a year ending July 31, and it expects to be profitable on higher sales in 1987. The company lost 658,000 dlrs on sales of 11.6 mln dlrs in the year ended July 31.  A company spokesman said Tofutti will be reporting earnings for the last five months of calendar 1986 by the end of March and will then report calendar first quarter results.  
DIGITECH INC <DGTC> 1ST QTR JAN 31 NET. Shr two cts vs eight cts Net 270,000 vs 1,212,000 Revs 1,858,000 vs 1,420,000 Avg shrs 16,817,618 vs 12,507,671  
CABOT MEDICAL CORP <CBOT> 1ST QTR JAN 31 NET. Shr four cts vs two cts Net 240,902 vs 106,054 Revs 3,408,481 vs 2,566,769  
AMERIHEALTH INC <AHTH> 4TH QTR LOSS. Oper shr loss one ct vs loss 11 cts Oper net profit 89,000 vs loss 323,000 Revs 9,603,000 vs 6,116,000 Year Oper shr loss six cts vs loss 21 cts Oper net profit 158,000 vs loss 629,000 Revs 34.6 mln vs 22.8 mln NOTE: 1986 net excludes tax credits of 170,000 dlrs in quarter and 321,000 dlrs in year and gains on termination of pension plan of 82,000 dlrs in quarter and 190,000 dlrs in year. Share after preferred dividends.  
CAMBRIDGE ANALYTICAL <CAAN> SEES FIRST QTR LOSS. Cambridge Analytical Associates Inc said it expects to incur a loss for the first quarter of fiscal 1987 equal to or greater than its loss of 240,697 dlrs for the fourth quarter ended December 31, 1986. Cambridge said it expects revenues for the first quarter to be approximately the same as those recorded for the fourth quarter ended December 31, 1986, of 1,025,961 dlrs. Cambridge recorded a profit of 2,204 dlrs on revenues of 847,000 dlrs for the first quarter of fiscal 1986, the company said. The company attributed the expected loss to lower than expected sales from its laboratory and consulting business and planned major investment in its proprietary treatment technology. The company said winter is traditionally its slowest season.  
MRS FIELDS PLANS TO OPEN MORE STORES. U.S. Based speciality food retailer <Mrs Fields Inc>, which earlier announced pre-tax profits of 17.1 mln dlrs in 1986 against 6.8 mln in 1985, said it plans further growth this year with the opening of 125 new stores in the U.S. The company, which is quoted on London's Unlisted Securities Market (USM), said it also planned to expand its outlets internationally. However, chairman Randall Fields told a news conference the company would not move into any new countries during 1987 but would intensify its efforts where it already had stores. During 1986 the company opened 81 new stores, including 76 in the U.S., Two in Australia and one each in Japan, Canada and the U.K. "We intend to open a minimum of five more units in London for example and it is reasonable that we might open other stores in other European countries in 1988," Fields said. He said the company acquired competitive businesses as a matter of routine, and might add others in 1987, but declined to say how much the company planned to spend on them. Last year turnover rose by 20.8 pct to 87.1 mln dlrs from 72.6 mln dlrs in 1985.  
BIOTECHNOLOGY DEVELOPMENT <BIOD> 4TH QTR LOSS. Shr loss five cts vs loss 17 cts Net loss 154,654 vs loss 419,606 Revs 517,699 vs 374,108 Year Shr loss 28 cts vs loss 56 cts Net loss 821,979 vs loss 1,368,591 Revs 1,650,657 vs 1,285,473  
HECHINGER CO <HECH> 4TH QTR NET. Shr primary 28 cts vs 22 cts Shr diluted 26 cts vs 21 cts Net 8,637,000 vs 6,577,000 Sales 140.3 mln vs 116.8 mln Year Shr primary 92 cts vs 77 cts Shr diluted 88 cts vs 75 cts Net 28.3 mln vs 23.1 mln Sales 588.4 mln vs 479 mln  
SVENSKA CELLULOSA AB <SCAB.ST> 1986 YEAR. Group profit after net financial items 1.39 billion crowns vs 1.32 billion Sales 15.22 billion crowns vs 12.61 billion Profit per share 20.50 crowns vs 19.60 Proposed dividend five crowns vs 4.40  
ROYAL TRUST PLOTS AGGRESSIVE GLOBAL EXPANSION. <Royal Trustco Ltd>, in a move unique among Canadian trust companies, is pursuing a bold global expansion that could someday lift the foreign share of its yearly earnings to 50 pct, president Michael Cornelissen said. First Marathon Securities Ltd financial services analyst Michael Walsh said Royal Trust's international growth target is attainable. But it "will be a tremendous achievement because ... they're going to have to build an international earnings base larger than the earnings of a lot of significant domestic trust companies," Walsh said. Global operations, which made up 22 pct of Royal Trust's 154 mln dlr 1986 net profit, will post 33 pct profit growth this year against an expected 15 pct jump in total company profit, Cornelissen told Reuters in an interview. He said the foreign share of total profit would rise to 26 pct in 1987 and to 44 pct by 1990. Royal Trust, Canada's second largest trust company with assets of about 19.54 billion Canadian dlrs, has operated internationally since 1929 when it opened a London bank. Its aggressive global strategy began in the 1980s, when other Canadian trusts, the equivalent of U.S. savings and loans, were focusing on domestic retail banking. The company's overseas ambitions were whetted by heightened domestic competition and impressive growth at its London bank operations, which attained full British banking powers in 1980, Cornelissen said. Last year, Royal Trust moved into continental Europe and Asia with its 239 mln Canadian dlr acquisition of Dow Chemical Co <DOW>'s Dow Financial Services Corp, which included asset management, merchant and private banking companies. "It was a heaven-sent opportunity," Cornelissen said of the Dow Financial acquisition. "We achieved in one year what would otherwise have taken five to 10 years to set up." Cornelissen stressed that Royal Trust would shun direct competition with major global financial institutions in activities such as international lending and stock brokerage, in order to exploit "profitable niches" overseas in traditional trust activities such as asset management, private banking and advisory services. He said that Royal Trust hoped to complete negotiations "before the end of this month" to sell its London-based Savory Milln brokerage, acquired in the Dow Financial deal. "The international market is so big and we have such a miniscule share of it that growth opportunities are really limited only by our energy and our desire to find more business," he said, adding that in trust-type services, "we don't think the international markets are well-served." Aiding Royal Trust's foreign growth are greater foreign investment interest in North America and increased Canadian investment abroad, Cornelissen said. Central to Royal Trust's strategy is Asia, boasting rapid economic growth and huge pools of Japanese capital, said Cornelissen, whose company administers assets of 71.85 billion dlrs, more than any other Canadian trust. Citing statistics indicating that by the year 2000, Asia will contain two-thirds of the world's population and 50 pct of global productive capacity, Cornelissen said, "We knew we had to be there." Royal Trust's 14 international locations include offices in Tokyo, Hong Kong and Singapore. The company also recently listed its shares on the Tokyo Stock Exchange. The Royal Trust president said the company was stressing growth within its overseas units, adding he did not foresee any acquisitions in the "immediate future," although "we have our eyes wide open for the right opportunities." Asked about Royal Trust's plans for the U.S., which the company abandoned with the 1983 sale of its Florida bank units, Cornelissen said the company faced a trust services market well covered by hundreds of small regional banks. "That doesn't mean to say we shouldn't be in the U.S.," said Cornelissen. "That is probably one area that we will probably do something with in the next five years." He said the company would continue to emphasize its home Canadian market, which Cornelissen and financial services analysts agreed would remain vital to Royal Trust. Proposed government regulations to allow Canadian banks, trusts, insurance and securities dealers full participation in one another's actitivies will mean more domestic competition for Royal Trust, "but not drastically more," Cornelissen said.  
SALOMON RAISES CATERPILLAR <CAT> OPINION. Salomon Brothers Inc said it raised its opinion on Caterpillar Inc's stock to an aggressive buy from a hold because of a brighter earnings outlook for 1988. Salomon analyst David Sutliff said in a statement he sees 1988 earnings of 3.35 dlrs a share, up from an earlier forecast of three dlrs for the year. The outlook for 1987 remains at 2.50 dlrs to three dlrs. Caterpillar's stock was down 1/2 points at 46-1/4. "Although earnings will be poor for the next two quarters, we believe that profits could begin to improve in the second half - perhaps significantly - and should surge sharply through 1988 and 1989," he said. Sutliff said improved results should come from four factors - higher prices, improved market share, reduced costs, and improved demand. The higher prices will stick because its Japanese competitor, Komatsu, has had to raise prices because of the increased value of the yen, he said.  
ROCKWOOD HOLDING CO <RKWD> 4TH QTR NET. Shr profit 78 cts vs loss 38 cts Net profit 3,108,000 vs loss 1,510,000 Revs 35.5 mln vs 47.1 mln Year Shr profit 2.42 dlrs vs loss 2.01 dlrs Net profit 9.6 mln vs loss eight mln Revs 157.2 mln vs 182.2 mln NOTE: Includes extraordinary gains of 22 cts per share and 36 cts in the fourth quarter and 1986, respectively.  
FBX CORP <FBXC> YEAR NOV 30 NET. Shr 11 cts vs three cts Net 313,000 vs 80,000 Revs 12.5 mln vs 11.3 mln  
<COOPER CANADA LTD> YEAR NET. Shr 23 cts vs 42 cts Net 1,387,000 vs 2,532,000 Revs 80.5 mln vs 82.6 mln  
TAB PRODUCTS CO <TBP> 3RD QTR FEB 28 NET. Shr 27 cts vs 22 cts Net 1,866,000 vs 1,476,000 Revs 33.0 mln vs 30.3 mln Nine Mths Shr 71 cts vs 57 cts Net 4,828,000 vs 3,857,000 Revs 92.0 mln vs 89.0 mln  
MARKEL CORP <MAKL> 4TH QTR NET. Shr 32 cts vs 18 cts Net 1,200,466 vs 545,670 Revs 8.2 mln vs 6.4 mln Year Shr 1.52 dlrs vs 27 cts Net 4,972,683 vs 1,046,460 Revs 33.3 mln vs 23 mln  
SCIENCE ACCESSORIES CORP <SEAS> 1ST QTR NET. Qtr ends Jan 31 Shr two cts vs two cts Net 78,537 vs 72,364 Revs 626,942 vs 640,030  
MACHINE TECHNOLOGY <MTEC> SEES 2ND QTR LOSS. Machine Technology Inc said it expects to report a second quarter loss of 13 to 17 cts per share on sales of about 4,400,000 dlrs. A year earlier, it lost 139,000 dlrs or three cts per share on sales of 4,271,000 dlrs. The company said it booked over six mln dlrs in the quarter and its backlog has risen 35 pct since the end of its fiscal year, leading it to expect improved results in the second half.  
DOCUGRAPHIX INC <DOCX> 3RD QTR JAN 31 LOSS. Shr loss six cts vs loss 18 cts Net loss 31,896 vs loss 753,518 Revs 840,075 vs 716,361 Avg shrs 5.45 mln vs 4.17 mln Nine mths Shr loss 25 cts vs loss 55 cts Net loss 1,271,972 vs loss 2,115,662 Revs 2,071,676 vs 1,933,562 Avg shrs 5.02 mln vs 3.85 mln  
NBD BANCORP <NBD> REGULAR DIVIDEND SET. Qtly div 30 cts vs 30 cts previously Pay May 11 Record April Nine  
NCR <NCR> SEES GOOD CHANCE FOR RECORD YEAR NET. NCR Corp is very optimistic that it will post record revenues and profits for 1987, Charles E. Exley Jr, chairman and president, said. "Much of our considerable optimism about the future is based on the strength of a continuing flow of new products," Exley told a meeting of securities analysts. "Our current position is the strongest in modern NCR history with new-generation offerings deliverable in every major category this year." For 1986, NCR's earnings rose nine pct, to 3.42 dlrs a share, on sales that increased 13 pct, to 4.9 billion dlrs. During the balance of 1987, Exley said NCR will pay close attention to increasing its penetration of major accounts, expanding its third-party distribution channels and continuing its introduction of new products. "In 1986, new products introduced within the proceding 36 months accounted for more than 65 pct of our major equipment order activity," he said. "At the end of two months," he added," I can say we are off to a good start" for 1987.  
FRANKLIN RESOURCES INC <BEN> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay April 10 Record March 27  
GENERAL CINEMA <GCN> SEES FLAT 1987 NET. General Cinema Corp said it expects flat net income for fiscal 1987 ending Oct. 31 against 125.8 mln dlrs or 3.43 dlrs a share a year ago. The company said the costs of a restructuring at its Carter Hawley Hale Stores Inc unit and the previous purchase of an 8.5 pct stake in <Cadbury Schweppes PLC> will lead to the flat net figure. It also said it may raise its stake in Cadbury Schweppes to 25 pct, but has not made any additional stock purchases so far. According to the restructuring, Carter Hawley plans to spin-off its specialty stores, including Neiman-Marcus, Bergdorf Goodman and Contempo Casuals, into a new company named <Neiman-Marcus Group>, whose shares will trade on the New York Stock Exchange, it said. As previously announced, General Cinema will own 60 pct of the equity and 40 pct of the voting shares in the new company. The restructuring is subject to approval by Carter Hawley shareholders.  
<TEECO PROPERTIES LP> SETS CASH DISTRIBUTION. Qtly distribution 10 cts per unit vs 10 cts prior Pay April 20 Record March 31  
<RADIX VENTURES INC> 2ND QTR JAN 31 LOSS. Shr loss three cts vs loss 12 cts Net loss 25,836 vs loss 88,819 Revs 50.3 mln vs 45.2 mln Six mths Shr profit nil vs loss 18 cts Net profit 2,843 vs loss 137,653 Revs 109.3 mln vs 99.3 mln  
ADOBE SYSTEMS INC <ADBE> 1ST QTR FEB 28 NET. Shr 15 cts vs six cts Net 1,410,000 vs 550,000 Revs 6,901,000 vs 2,392,000 Avg shrs 10,326,000 vs 9,064,000 Note:  Prior qtr per share figure adjusted for two-for-one stock split of February 27.  
202 DATA SYSTEMS INC <TOOT> 1ST QTR JAN 31 NET. Shr three cts vs four cts Net 101,376 vs 125,922 Revs 568,884 vs 494,227  
VISHAY <VSH> SETS TWO PCT STOCK DIVIDEND. Vishay Intertechnology Inc said its board declared a two pct stock dividend, payable April 10 to holders of record on March 26. The company said the stock dividend will be paid only to holders of commons tock who do not exchange for Class B stock in Vishay's current exchange offer, which expires March 25.  
<ONYX PETROLEUM EXPLORATION CO LTD> YEAR LOSS. Shr loss 2.82 dlrs vs profit 35 cts Net loss 10,556,478 vs profit 1,286,341 Revs 6,202,157 vs 7,641,290 Note: 1986 shr and net after 10,282,353 dlr writedown on oil and gas property values  
INTEGRATED CIRCUITS <ICTM> SETS RECORD DATE. Integrated Circuits Inc said it set March 17 as the record date for its previously announced 10 pct stock dividend. The company said it will distribute the dividend on March 31.  
MSA REALTY CORP <SSS> 4TH QTR NET. Shr profit four cts vs loss two cts Net profit 247,970 vs loss 57,341 Revs 2,393,622 vs 2,627,612 Avg shrs 5,958,432 vs 2,440,100 Year Shr profit 71 cts vs loss 35 cts Net profit 3,213,310 vs loss 849,180 Revs 14.6 mln vs 9,099,767 Avg shrs 6,177,666 vs 2,440,083 NOTE: 1986 4th qtr and yr net includes a loss of 85,000 dlrs and a gain of 250,000 dlrs, respecitvely, for extraordinary item. 1986 net assumes all warrants exercised for the 2nd qtr only. The adjustment to second quarter income for earnings per share was 1,175,000 dlrs.  
LEAR PETROLEUM PARTNERS LP <LPP> 4TH QTR LOSS. Oper shr loss nil vs loss nil Oper net loss 112,000 vs loss 125,000 Revs nil vs nil Avg shrs 26.7 mln vs 21.9 mln Year Oper shr loss two cts vs loss two cts Oper net loss 450,000 vs loss 503,000 Revs nil vs nil Avg shrs 24.8 mln vs 20.8 mln NOTE: Net excludes losses from discontinued oil and natural gas operations of 44.7 mln dlrs vs 9,489,000 dlrs in quarter and 92.3 mln dlrs vs 80.7 mln dlrs in year.  Company sold all its operations at the end of 1986.  
WESTRONIC INC <WSTX> YEAR LOSS. Shr loss 1.13 dlr vs loss 2.04 dlrs Net loss 3,674,000 vs loss 3,016,000 Revs 2,894,000 vs 1,464,000  
KENAN TRANSPORT CO <KTCO> SETS QUARTERLY. Qtly div four cts vs four cts prior Pay April 15 Record March 31  
GENCORP 1ST QTR SHR 77 CTS VS 84 CTS.  GENCORP 1ST QTR SHR 77 CTS VS 84 CTS  
MAGNETIC TECHNOLOGIES CORP <MTCC> 1ST HALF NET. Jan 31 end Shr not given Net profit 105,013 vs loss 745,641 Sales 3,661,565 vs 2,810,132  
GENCORP <GY> 1ST QTR FEB 28 NET. Shr 77 cts vs 84 cts Net 17 mln vs 19 mln Sales 650 mln vs 614 mln  
MAGNETIC TECHNOLOGIES <MTCC> SEES IMPROVEMENT. Magnetic Technologies Corp said it expects the second half to show continued growth in earnings and sales. The company today reported a profit for the first half ended January 31 of 105,013 dlrs, compared with a year-earlier loss of 745,641 dlrs, on sales of 3,661,565 dlrs, up from 2,810,132 dlrs.  In all of last year, Magnetic earned 996,000 dlrs after a loss from discontinued operations of 359,000 dlrs, on sales of 6,084,000 dlrs.  
WELBILT CORP <WELB> 4TH QTR NET. Shr 58 cts vs 54 cts Net 3,144,000 vs 2,464,000 Revs 54.6 mln vs 38.6 mln Avg shrs 5,394,000 vs 4,602,000 Year Shr 2.03 dlrs vs 1.76 dlrs Net 10.5 mln vs 8,084,000 Revs 201.1 mln vs 152.4 mln Avg shrs 5,154,000 vs 4,602,000  
SATELLITE MUSIC NETWORK INC <SMNI> YEAR NET. Oper shr four cts vs three cts Oper net 340,036 vs 223,297 Revs 11.1 mln vs 9,514,115 Avg shrs 8,926,909 vs 7,672,146 NOTE: Net excludes tax credits of 252,160 dlrs vs 152,717 dlrs.  
COMBINED INT'L TO ASK DOUBLING OF AUTHORIZED SHARES, STOCK SPLIT.  COMBINED INT'L TO ASK DOUBLING OF AUTHORIZED SHARES, STOCK SPLIT  
CANBRA FOODS LTD SETS SPECIAL ONE-TIME FIVE DLR/COMMON SHR CASH PAYOUT.  CANBRA FOODS LTD SETS SPECIAL ONE-TIME FIVE DLR/COMMON SHR CASH PAYOUT  
CANBRA FOODS LTD YEAR OPER SHR PROFIT 1.52 DLRS VS LOSS 55 CTS.  CANBRA FOODS LTD YEAR OPER SHR PROFIT 1.52 DLRS VS LOSS 55 CTS  
WILSON FOODS CORP <WILF> 2ND QTR JAN 31 NET. Oper shr profit 21 cts vs loss 55 cts Oper net profit 1,528,000 vs loss 3,296,000 Sales 329.4 mln vs 368.0 mln 1st half Oper shr profit 28 cts vs loss 4.55 dlrs Oper net profit 2,026,000 vs loss 27.3 mln Sales 691.3 mln vs 738.2 mln NOTE: Prior half net includes pretax charge 21.4 mln dlrs from plant closings and workforce reductions. Current year net excludes tax credits of 1,381,000 dlrs in quarter and 1,722,000 dlrs in half.  
<CANBRA FOODS LTD> YEAR NET. Oper shr profit 1.52 dlrs vs loss 55 cts Oper profit 4,172,188 vs loss 1,502,032 Revs not given Note: 1986 shr and net exclude extraordinary gain of 1,294,245 dlrs or 47 cts share on sale of Stafford Foods unit  
OXFORD FIRST CORP <OFC> 4TH QTR NET. Oper shr 45 cts vs 24 cts Qtly div six cts vs six cts prior Oper net 1,766,000 vs 950,000 Revs 9,321,000 vs 5,298,000 Year Oper shr 1.25 dlrs vs one dlr Oper net 4,985,000 vs 3,894,000 Revs 28.3 mln vs 19.9 mln NOTE: Net excludes losses from discontinued operations of 161,000 dlrs vs 66,000 dlrs in quarter and 464,000 dlrs vs 226,000 dlrs in year. Dividend pay May Five, record April 13. Share adjusted for three-for-two stock split.  
HARRIS-TEETER PROPERTIES <HTP> REPORTS EARNINGS. Harris-Teeter Properties Inc reported fourth quarter fiscal 1986 earnings per share of 24 cts on earnings of 601,000 dlrs. The realty investment trust company started operations in August and had no comparable figures, it said.  
BSN CORP <BSN> 4TH QTR NET. Shr two cts vs eight cts Net 73,000 vs 233,000 Revs 21.0 mln vs 9,510,000 Avg shrs 3,620,000 vs 2,886,000 Year Shr 66 cts vs 37 cts Net 2,246,000 vs 1,064,000 Revs 68.3 mln vs 40.8 mln Avg shrs 3,392,000 vs 2,886,000 NOTE: 1985 year net includes extraordinary gain one ct shr and gain two cts from cumulative effect of accounting change.  
BSN <BSN> SEES HIGHER 1987 NET. BSN Corp said it expects revenues of about 120 mln dlrs and a substantial increase in net income and earnings per share for 1987. Today it reported 1986 net income of 2,246,000 dlrs or 66 cts per share on revenues of 68.3 mln dlrs, up from 1,064,000 dlrs or 37 cts per share on revenues of 40.8 mln dlrs a year before.  
COMBINED INT'L <PMA> HOLDERS TO VOTE ON SPLIT. Combined International Corp said it will ask shareholders at the April 23 annual meeting to approve the doubling of authorized common shares to 120 mln. Holders will also vote on a proposal to create a new class of 25 mln shares of serial preferred stock one dlr par value in place of its existing classes of authorized and unissued preferred stock. It said at its regular March board meeting members will consider a stock split or stock dividend, which would be contingent upon stockholder approval of the changes in the capital structure at the April annual meeting. Holders will also be asked to approve a new corporate name, Aon Corp. It said aon is a Gaelic word meaning unit. The name is intended to eliminate confusion between the parent company and its principal subsidiary, Combined Insurance Co of America. Holders will also vote on a proposal to limit the liability of directors and amend the provision for indemnifying directors, officers employees an agents. This is being done to reduce the costs of liability insurance.  
CANBRA FOODS SETS SPECIAL FIVE DLR/SHR PAYOUT. <Canbra Foods Ltd>, earlier reporting a 1986 net profit against a year-ago loss, said it declared a special, one-time dividend of five dlrs per common share, pay March 31, record March 26. Canbra said it set the special payout to allow shareholders to participate in the gain on the sale of unit Stafford Foods Ltd in November, 1986, as well as the company's "unusually profitable performance" in 1986. Canbra earlier reported 1986 net earnings of 4.2 mln dlrs, excluding a 1.3 mln dlr gain on the Stafford sale, compared to a year-ago loss of 1.5 mln dlrs.  
ADVANCE CIRCUITS INC <ADVC> 2ND QTR FEB 28 NET. Oper shr profit one cts vs loss 22 cts Oper net profit 35,000 vs loss 948,000 Revs 17.4 mln vs 13.8 mln Six mths Oper shr loss 23 cts vs loss 48 cts Oper net loss 1,025,000 vs loss 2,093,000 Revs 32.5 mln vs 27.6 mln NOTE: Results exclude credits of 1,737,000 or 39 cts shr for both 1987 periods from refinancing of debt.  
COMMONWEALTH MORTGAGE <CMA> SETS PAYOUT. Qtrly div 26 cts Class A vs 12 cts Qtrly div one cent Class B vs nil Pay May 15 Record March 31 NOTE: prior qtr pro rated on 45 day basis for abbreviated qtr. Full name of company commonwealth mortgage of america.  
<BKLA BANCORP> DEC 31 YEAR NET. Shr 90 cts vs 66 cts Net 924,000 vs 679,000 Loans 88.7 mln vs 67.4 mln Deposits 165.5 mln vs 106.7 mln Assets 181.5 mln vs 124.5 mln  
PRECISION TARGET MARKETING <PTMI> 3RD QTR NET. Qtr ends Jan 31 Shr profit one ct vs loss two cts Net profit 74,000 vs loss 122,000 Revs 1,657,000 vs 1,416,000 Nine mths Shr profit five cts vs loss 10 cts Net profit 299,000 vs loss 624,000 Revs 5,134,000 vs 3,744,000 NOTE: Full name Precision Target Marketing Inc. Nine months 1987 includes extraordinary gain of two cts per share.  
AMCAST INDUSTRIAL CORP <ACST> 2ND QTR MARCH ONE. Shr profit 10 cts vs loss 2.20 dlrs Net profit 687,000 vs loss 14.5 mln Sales 68.3 mln vs 54.8 mln Avg shrs 7,018,000 vs 6,577,000 1st half Shr profit 38 cts vs loss 1.95 dlrs Net profit 2,596,000 vs loss 12.8 mln Sales 129.9 mln vs 113.3 mln Avg shrs 6,964,000 vs 6,568,000  
SCIENTIFIC SYSTEMS SERVICES INC <SSSV> 4TH QTR. Shr profit four cts vs loss 49 cts Net profit 160,700 vs loss 1,867,100 Revs 4,700,000 vs 5,600,000 Year Shr profit two cts vs loss 1.20 dlrs Net profit 84,400 vs loss 4,507,800 Revs 20.5 mln vs 22.5 mln  
SKIPPERS INC <SKIP> SEMI-ANNUAL DIVIDEND. Semi-annual div four cts vs four cts Pay April 30 Record April 9  
ZIEGLER CO INC <ZEGL> SETS QUARTERLY. Qtly div 13 cts vs 13 cts prior Pay April 17 Record April 3.  
UNITED TOTE INC <TOTE> 1ST QTR JAN 31 NET. Shr profit nil vs loss 10 cts Net profit 2,936 vs loss 170,866 Revs 4,147,248 vs 1,091,392  
SEVEN OAKS <QPON> IN TELEMARKETING VENTURE. Seven Oaks International Inc said it has formed a new 80 pct owned subsidiary called Seven Oaks Direct Inc to offer a full line of telemarketing services. It said Seven Oaks direct management will own the remaining 20 pct. The company said initial costs connected with the startupo of a new Memphis, Tenn., marketing center for Seven Oaks direct may hurt earnings slightly in the first half of the year ending in April 1988, but Seven Oaks Direct should operate at no worse than breakeven for fiscal 1988 as a whole.  
QUADREX CORP <QUAD> 4TH QTR JAN 31 LOSS. Shr loss eight cts vs loss 20 cts Net loss 586,000 vs los 1,497,000 Revs 13.8 mln vs 14.4 mln Year Shr loss 15 cts vs loss 18 cts Net loss 1,135,000 vs loss 1,377,000 Revs 57.7 mln vs 55.1 mln  
PHILIP CROSBY ASSOCIATES <PCA> EARNINGS DELAYED. Philip Crosby Associates Inc said its fourth quarter and annual earnings report will be delayed two more weeks. The company cited the recent in-house embezzlement and a subsequent review by auditors of its international situation as reason for the delay. Philip Crosby, however, said it believes its December estimate calling for earnings per share between 10 cts and 15 cts, on revenues of 11 mln dlrs, was still valid.  
UNITED TOTE INC <TOTE> 1ST QTR JAN 31 NET. Shr nil vs loss 10 cts Net profit 2,936 vs loss 170,866 Revs 4,147,248 vs 1,091,392  
NEW PLAN REALTY TRUST <NPR> 2ND QTR NET. Qtr ends Jan 31 Shr 22 cts vs 19 cts Net 4,549,000 vs 3,666,000 Revs 8,903,000 vs 7,791,000 Avg shrs 20.9 mln vs 19.9 mln Six mths Shr 42 cts vs 41 cts Net 8,641,000 vs 7,928,000 Revs 17.5 mln vs 14.6 mln Avg shrs 20.8 mln vs 19.4 mln NOTE: earnings were restated to reflect the three-for-two stock split on April one, 1986.  
HENLEY GROUP <HENG> SETS FISHER DISTRIBUTION. Henley Group Inc said it declared a special dividend distribution of one Fisher Scientific Group Inc share for every 16 Henley shares. Previously, it said it would pay one fisher share for every 20 outstanding, but it changed the ratio because of the reduction in its outstanding shares to 109 mln from 129 mln. It said the distribution of about 20 pct of Fisher's common stock will be made April six to holders of record March 26. Fisher will trade on NASDAQ under the symbol <FSHG>.  
GENCORP <GY> 1ST QTR OPERATING EARNINGS ROSE. GenCorp said its first quarter earnings from operations rose four pct as sales increased six pct to 650 mln dlrs from 614 mln a year earlier. However, the company reported net income declined to 17 mln dlrs, or 77 cts a share, in the quarter ended February 28 from 19 mln dlrs, or 84 cts a year earlier. This year's net included 700,000 dlrs from the sale of assets while last years was increased 3.0 mln dlrs by such sales. GenCorp said lower operating profits for the tire and plastics and industrial products segments were essentially offset by higher wallcovering results.  
MCCORMICK AND CO INC <MCCRK> 1ST QTR FEB 28 NET. Shr 37 cts vs 35 cts Net 4,346,000 vs 4,202,000 Revs 232.0 mln vs 223.2 mln  
TELEQUEST INC <TELQ> 4TH QTR DEC 31 LOSS. Shr loss nine cts vs profit 35 cts Net loss 299,000 vs profit 1,025,000 Sales 9,704,000 vs 9,659,000 Avg shrs 3,792,138 vs 2,892,138 Year Shr profit one ct vs profit 58 cts Net profit 45,000 vs profit 1,705,000 Sales 25.4 mln vs 17.8 mln Avg shrs 3,567,138 vs 2,892,138  
AMCAST INDUSTRIAL CORP <ACST> 2ND QTR NET. Qtr ends March One Shr profit 10 cts vs loss 2.20 cts Net profit 687,000 vs loss 14.5 mln Revs 68.3 mln vs 54.8 mln Avg shrs 7,018,000 vs 6,577,000 Six mths Shr profit 38 cts vs loss 1.95 Net profit 2,596,000 vs loss 12.8 mln Revs 129.9 mln vs 113.3 mln Avg shrs 6,964,000 vs 6,568,000 NOTE: figures for qtr and year prior include pre-tax restructuring charge of 22.5 mln.  
CHICAGO DOCK AND CANAL <DOCKS> 3RD QTR NET. Period ended Jan 31 Shr 16 cts vs 10 cts Net 901,000 vs 562,000 Nine mths Shr 1.77 dlrs vs 19 cts Net 9,886,000 vs 1,122,000 NOTE: Full name is Chicago Dock and Canal Trust 1987 nine months earnings include gain from dispositions of real estate of 7,666,000 dlrs, or 1.33 dlrs a share  
INFINITE GRAPHICS <INFG> SEES HIGHER 4TH QTR. Infinite Graphics Inc expects earnings for the fourth quarter ending April 30 to exceed the 127,587 dlrs, or seven cts a share posted a year ago, Chairman Clifford F. Stritch Jr. told a meeting of financial analysts. Stritch also said the company's annual revenues should exceed 6.0 mln dlrs, up from 4.1 mln dlrs in the previous fiscal year. He said the company, which markets advanced computer-aided engineering, design and manufacturing systems, plans to double its dealers to 50 during the coming fiscal year.  
AFFILIATED PUBLICATIONS INC <AFP> SETS PAYOUT. Qtrly div eight cts vs eight cts prior Pay June 1 Record May 15  
FRANKLIN RESOURCES INC <BEN> QTLY DIVIDEND. Shr six cts vs six cts prior qtr Pay April 10 Record March 27  
<CANADIAN ROXY PETROLEUM LTD> YEAR NET. Shr profit five cts vs loss 23 cts Net profit 916,000 vs loss 2,886,000 Revs 20.0 mln vs 28.2 mln  
THREE D DEPARTMENTS INC <TDD> 2ND QTR JAN 31. Shr four cts vs 15 cts Net 132,851 vs 501,537 Revs 10 mln vs 15.5 mln Six mths Shr 12 cts vs 24 cts Net 409,383 vs 812,045 Revs 19.4 mln vs 29.1 mln  
<CONSOLIDATED PIPE LINES CO> YEAR NET. Shr 1.19 dlrs vs 1.38 dlrs Net 1,499,234 vs 1,713,941 Revs 23.2 mln vs 10.3 mln  
NEWCOR INC <NEW> 1ST QTR JAN 31 NET. Shr profit four cts vs loss 58 cts Net profit 119,000 vs loss 1,629,000 Sales 18.4 mln vs 17.0 mln  
SKYLINE CORP <SKY> 3RD QTR FEB 28. Shr 13 cts vs seven cts Net 1,487,000 vs 778,000 Sales 64.4 mln vs 58.3 mln Nine mths Shr 66 cts vs 55 cts Net 7,388,000 vs 6,127,000 Sales 223.0 mln vs 222.2 mln NOTE: 1987 quarter and nine month earnings includes a gain on sale of idle facilities of 406,000 dlrs, or four cts a share 1986 nine months earnings include gain on sale of idle facilities of 377,000 dlrs, or three cts a share  
TECH DATA CORP <TECD> 4TH QTR ENDS JAN 31 NET. Shr 24 cts vs 13 cts Net 771,000 vs 314,000 Revs 24.1 mln vs 11.3 mln Avg shrs 3,234,000 vs 2,426,000 12 mths Shr 65 cts vs 38 cts Net 1,983,000 vs 904,000 Revs 71.5 mln vs 37.7 mln Avg shrs 3,035,000 vs 2,371,000  
HORIZON BANCORP <HZB> SETS REGULAR PAYOUT. Qtrly div 34 cts vs 34 cts prior Pay May 1 Record April 15  
ASHLAND OIL CHAIRMAN SEES LOSS FROM OPERATIONS IN THE SECOND FISCAL QUARTER.  ASHLAND OIL CHAIRMAN SEES LOSS FROM OPERATIONS IN THE SECOND FISCAL QUARTER  
HENLEY <HENG> TO ISSUE SUBSIDIARY'S SHARES. Henley Group Inc said it plans to issue 20 pct of the common stock of its Fisher Scientific Group Inc unit to Henley Group shareholders. The company said it intends to issue one share of Fisher Scientific for each 16 Henley shares held to shareholders of record March 26. The distribution is scheduled for April six, the company also said. It said the Fisher shares will trade in the over-the-counter market under the symbol FSHG.  
<SILICON VALLEY BANCSHARES> SETS STOCK PAYOUT. Silicon Valley Bancshares said it declared a five pct stock dividend, payable May 1 to shareholders of record April 1.  
DI GIORGIO CORP <DIG> QTLY DIVIDEND. Shr 16 cts vs 16 cts prior qtr Pay May 15 Record April 17  
TRANSAMERICA INCOME <TAI> MONTHLY DIVIDEND. Shr 19 cts vs 19 cts prior period Pay April 15 Record March 31 Note: Full name Transamerica Income Shares Inc.  
SMITHKLINE <SKB> AIMS FOR 10 PCT EARNINGS RAISE. SmithKline Beckman Corp said it is pursuing a three-point stragey that will achieve a 10 pct annual increase in operating earnings throughout the remainder of the decade. In 1986, SmithKline earned 521.1 mln dlrs or 6.78 dlrs per share on revenues of 3.6 billion dlrs. The company said in its annual report that its nonpharmaceutical business will play a major role in meeting its earnings growth target, and will in fact grow faster than its pharmaceutical business. SmithKline, whose major product is the antiulcer medication Tagamet, said in the report that it intends to improve earnings from existing products, expand its product portfolio and optimize its financial resources. To bolster its position in the antiulcer market, in which Tagamet has met stiff competition, SmithKline said its strategy to develop an over-the-counter version of Tagamet is bolstered by two joint ventures, one with <Wellcome PLC>, and one pending venture in Japan. SmithKline also said its Allergan Inc eye and skin care products division can be a one billion dlr organization in the next five years that can grow at more than seven to 10 pct annually. "Nondilutive acquisitions are a real possibility," Gavin Herbert, president of the eye and skin care product group said in the report. In 1986, Allergan had worldwide sales of 433 mln dlrs. It said its Smith Kline and French Laboratories pharmaceuticals unit, with 1986 sales of 1.9 billion dlrs, will file for Food and Drug Administration marketing approval for a number of cardiovascular agents, including tissue plasminogen activator, over the next two years. It also said SK and F's U.S. sales force will be 20 pct larger in 1987, with more than 1,000 sales personnel. Smith Kline also said its small clinical laboratory testing unit, with 1986 sales of 373 mln dlrs, performs 24 mln tests a year, and sees increases in employee drug testing as well as in testing for the AIDS antibody. Smith Kline said that depending on its share price and the cost of money, it may buy back more shares. In the last three years, it has bought back about 25 pct of its shares. SmithKline begins the year with a new management team, including its new chief operating officer George Ebright.  
ASHLAND OIL <ASH> SEES 2ND QTR OPER LOSS. Ashland Oil Inc said it expects to report a loss from operations in the second quarter. The company also said it expects to report a 10 mln dlrs net gain in the quarter from excess pension funds used to pay down debt. "However, it is difficult to determine now whether this gain will be sufficient to offset the expected operating loss," the company said in a statement. A company spokesman would not elaborate. The company's Ashland Petroleum Co unit operated at a loss in January and February since it was unable to raise product prices enough to recover higher crude oil costs, Ashland said. Although Ashland Petroleum and SuperAmerica, a retail marketing operation, are having a difficult quarter, the company's Valvoline, Ashland Chemical and coal businesses are expected to report good results for the quarter ended March 31. In the year-ago quarter, Ashland had income from operations of 93.8 mln dlrs before corporate and interest expenses, taxes, equity income and other items. Net income in the quarter was 39.4 mln dlrs or 1.12 dlrs a share on sales of 1.78 billion dlrs.  
BANKAMERICA CHAIRMAN SAYS BANK IS TURNING AROUND, HEADING TO PROFITABILITY.  BANKAMERICA CHAIRMAN SAYS BANK IS TURNING AROUND, HEADING TO PROFITABILITY  
<GENERAL LEASEHOLDS LTD> YEAR NET. Shr 30 cts vs 53 cts Net 868,000 vs 728,000 Revs 7,300,000 vs 6,500,000 Avg shrs 3,000,000 vs 750,000  
BANKAMERICA <BAC> CHAIR SAYS BANK TURNING AROUND. BankAmerica Corp Chairman A.W. Clausen said the bank holding company is turning around and is back on the road to profitability. In a speech to the San Francisco Chamber of Commerce, Clausen said he was "absolutely convinced" BankAmerica would return to its position of preeminence. "Fundamental to achieving that goal is to continue to reduce costs dramatically, to get our arms around our loan loss problems and begin to reduce charge-offs, and to enhance our revenue generation," Clausen said. Clausen said he doubts BankAmerica would be in a position this year to make any acquisitions or experience any growth. He said BankAmerica will continue to reduce staff and operations, noting that expense growth in 1986 increased only one pct over 1985 expenses. Clausen also said it will continue to phase out its overseas retail banking and concentrate on wholesale banking, with emphasis on a premium list of multinational corporations.  
ROCHESTER TELEPHONE CORP <RTC> SETS DIVIDEND. Qtly div 66 cts vs 66 cts Pay May one Record April 15  
AUGAT INC <AUG> SETS QUARTERLY DIVIDEND. Qtly div 10 cts vs 10 cts Pay April 30 Record April 10  
PHH GROUP <PHH> REGULAR QTLY DIVIDEND. Qtly div 26 cts vs 26 cts prior Pay April 30 Record April 10  
TELCO SYSTEMS INC <TELC> 2ND QTR MARCH ONE LOSS. Shr loss nine cts vs profit 14 cts Net loss 773,000 vs profit 1,618,000 Revs 16.3 mln vs 26.7 mln Six mths Shr loss 56 cts vs profit 27 cts Net loss 4,763,000 vs profit 3,398,000 Revs 29.3 mln vs 49.9 mln  
PRECISION TARGET MARKETING INC <PTMI> 3RD QTR. Shr profit one cts vs loss two cts Net 74,000 vs loss 122,000 Revs 1.7 mln dlrs vs 1.4 mln Nine months Shr profit five cts vs loss 10 cts Net profit 299,000 vs loss 624,000 Revs 5.1 mln vs 3.7 mln NOTE:3rd qtr ended January 31. 1987 3rd qtr and nine months includes 36,000 dlrs and 129,000 dlrs gains respectively from tax loss carryforward.  
ROYAL BANK/CANADA BRAZIL UNIT SEES GROWTH. Royal Bank of Canada's <RY> small Brazilian commercial bank subsidiary Banco Royal do Canada (Brasil) S.A. sees opportunities for its own growth with an expected substantial increase in Brazilian exports to Canada, Banco Royal president Michael Brennan said. "They (Brazilian exporters) are very interested in the Canadian market because it's an untapped market," Brennan told reporters after a speech to the Brazil/Canada Chamber of Commerce. Brennan said Brazil is currently exporting products like paper machinery and ships to Canada. He said he hopes to see medium-term financing facilities for Brazilian companies reinstated shortly, following an agreement reached in January with international financial authorities. Brennan estimated Brazilian exports to Canada totalled roughly 800 mln Canadian dlrs in 1985 while imports from Canada reached about 700 mln dlrs. Brennan said he expects Banco Royal profit to increase this year from the three mln U.S. dlrs reported for fiscal 1986 ended September 30 but said he could not predict by how much because of the country's uncertain financial climate. Brennan said he expects his bank's growth to come from increased exports to Canada. Banco Royal is the only Canadian-owned commercial bank in Brazil although <Bank of Montreal> has a Brazilian investment bank subsidiary, he said. Brennan said he expected Brazil to be able to reach an equitable agreement with foreign banks on restructuring its 68 billion U.S. dlr foreign debt, because the Brazilian economy is essentially healthy. He said he believed Brazil might be in a position to resume debt repayments within a year. Brennan said he could not comment on the impact of Brazil's interest payment moratorium on the Royal Bank of Canada.  
AFFILIATED PUBLICATIONS INC <AFP> SETS DIVIDEND. Qtly div eight cts vs eight cts Pay June one Record May 15  
ASTRO-MED INC <ALOT> 4TH QTR NET. Shr 10 cts vs nine cts Net 217,000 vs 192,000 Revs 3,325,000 vs 2,506,000 Year Shr 31 cts vs 43 cts Net 660,000 vs 932,000 Revs 12.2 mln vs 10.7 mln  
ATCOR <ATCO> SAYS OUTLOOK DEPENDS ON STEEL. Atcor Inc said the magnitude of any earnings recovery in fiscal 1987 depends on the direction of steel pricing and how fast the company's severe operating problems in its consumer segment are resolved. Atcor's consumer segment represents about 25 pct of its sales. In a letter to shareholders the company said that that part of its business continues to be unprofitable. Atcor said it does not expect performance improvements in the first quarter to be sustained throughout the year due to increasing raw material costs.  
ZZZZ BEST CO INC <ZBST> 3RD QTR NET. Shr 14 cts vs four cts Net 1,474,000 vs 286,000 Revs 15.5 mln vs 1.4 mln Avg shrs 10.6 mln vs 7.5 mln Nine mths Shr 38 cts vs eight cts Net 3,387,000 vs 588,000 Revs 33.4 mln vs 2.9 mln Avg shrs 8.8 mln vs 7.5 mln  
MODULINE INTERNATIONAL <MDLN> 3RD QTR OPER LOSS. Qtr ended Dec 31 Oper shr loss two cts vs loss 92 cts Oper net loss 28,045 vs loss 1,040,700 Sales 4,943,584 vs 5,613,400 Nine mths Oper shr profit 11 cts vs loss 93 cts Oper net profit 124,434, vs loss 1,054,000 Sales 22.6 mln vs 26.3 mln (Mouduline International Inc) Note: oper data does not include 1986 gains from tax benefit carryforwards of 30,000 dlrs, or three cts per shr, in qtr and 110,000 dlrs, or ten cts per shr, in nine mths.  
<FINANCIAL TRUSTCO CAPITAL LTD> HIKES PAYOUT. Qtly div 12.5 cts vs six cts Pay March 31 Record March 24 Note: Co also declares 12.5 ct qtly div on special shares issued in December, 1986, with same pay and record dates.  
USP REAL ESTATE <USPTS> HAS GAIN ON SALE. USP Real Estate Investment Trust said it will post a first-quarter gain of 2,258,216 dlrs on the sale of the Spanish Villa Apartments in Savannah, Ga., which was completed last week.  
BINDLEY WESTERN INDUSTRIES INC<BIND>4TH QTR NET. Oper shr primary 28 cts vs 17 cts Oper shr diluted 24 cts vs 17 cts Oper net 1,826,000 vs 1,104,000 Revs 205.4 mln vs 171.1 mln Avg shrs primary 6,512,462 vs 6,510,462 Avg shrs diluted 10.3 mln vs 10.3 mln Year Oper shr primary 83 cts vs 76 cts Oper shr diluted 77 cts vs 74 cts Oper net 5,393,000 vs 4,955,000 Revs 719.9 mln vs 633.5 mln Avg shrs primary 6,511,591 vs 6,508,379 Avg shrs diluted 10.3 mln vs 9,122,722 Note: Revs includes investment income 2,323,000 dlrs vs 2,239 dlrs for qtr and 10.1 mln dlrs vs 6,612,000 dlrs for 12 mths. 1986 revs also include unrealized loss on equity securities of 59,000 dlrs for qtr and 1,155,000 dlrs for 12 mths. Oper net excludes extraordinary gain of 875,000 dlrs vs 284,000 dlrs for qtr and 1,053,000 dlrs vs 462,000 dlrs for 12 mths.  
CENTEL <CNT> SEES LOWER FIRST QTR PROFITS. Centel Corp said it sees 1987 first quarter results below those of 1986 due to regulatory limits on telephone earnings and 15 cts to 20 cts a share dilution from 1986 acquisitions. In the annual report, Chairman Robert Reuss told shareholders telephone profits will continued to be limited by ceilings imposed by regulators as well as deregulation and structural changes within the industry that have slowed growth in the investment base for setting rates. As such, its first quarter 1987 results will be below last year's first quarter of 1.11 dlrs a share, he said. "Several of the company's telephone units may be faced with a reduction in the rates of return authorized by their regulators," Reuss said. "This could result in some rate reductions and refunds to customers." Reuss said he is encouraged by the prospects for progress in Centel's business communications, cable television and cellular telephone units. Centel is asking shareholders at the annual meeting to approve the tripling  to 120 mln in authorized shares.  
WINGS WEST AIRLINES <WING> 3RD QTR NET. Qtr ended Jan 31 Shr one ct vs nine cts Net 29,000 vs 349,000 Revs 7,892,000 vs 4,721,000 Note: nine mth data unavailable .  
PAY'N-SAVE <PAYN> 1ST QTR JAN 31 NET. Shr profit one ct vs loss 14 cts Net profit 279,000 vs loss 1,896,000 Sales 199.6 mln vs 142.4 mln  
CATHAY PACIFIC 1986 PROFIT SEEN ABOVE TARGET. Buoyed by low fuel prices and favourable currency factors, Cathay Pacific Airways Ltd's <CAPH.HK> 1986 profits are expected to surpass the airline's forecast of one billion H.K. Dlrs, stock analysts said. Analysts said they expect the airline to show net earnings of between 1.1 billion and 1.25 billion dlrs when it reports results tomorrow for its first year as a public company. Cathay, 51 pct owned by Swire Pacific Ltd <SWPC.HK>, made its earnings forecast in the prospectus for its flotation in May last year. Cathay is expected to pay a 13-cent final dividend, making a total of 19 cents for the year, as forecast in the prospectus, analysts polled by Reuters said. They said the airline's performance improved in the second half of the year after it reported interim profits of 503 mln dlrs. The weakness of the local currency, pegged at 7.80 to one U.S. Dollar, and low fuel prices moved further in the company's favour from the assumptions made in the prospectus at the time of the flotation, James Capel (Far East) Ltd said. James Capel estimates average fuel prices for the airline industry in 1986 at 63 U.S. Cents per gallon, 27 pct below the 1985 level. It said a one pct movement in fuel prices would affect Cathay's net profits by 10 mln dlrs and forecast profits of 1.25 billion dlrs. Analysts said the company's estimates of fuel price and currency movements set out in its prospectus were conservative. "This is reflected in their interim results which showed that profit margin has increased," said Frederick Tsang of Mansion House Securities (F.E.) Ltd. Cathay's six-month turnover rose 19.8 pct from year-earlier levels, but profits rose 69 pct. The rise in oil prices in late 1986 had little impact on the company's fuel oil bill last year, as aviation fuel prices usually lag behind crude price movements by several months, analysts said. By last September the yen had risen some 54 pct against the Hong Kong dollar from the end of 1985, the mark 43 pct and sterling 12 pct. "Overall the weakness of the Hong Kong dollar against Cathay's major trading currencies helped push passenger yields in the first half up 7.2 pct," said James Capel. "This should continue through the second half to enable passenger yields to end the year up 7.6 pct." A strong performance from the 2.9 billion dlrs in cash under management also improved profits, James Capel said. A general improvement in air traffic last year contributed to Cathay's revenue increase, but the company's load factor declined because of increased competition and an expansion of its fleet and services. James Capel estimated Cathay's passenger-kilometres flown last year rose six pct from 1985 and freight-kilometres flown climbed 17 pct, though the airline's load factor probably fell to 68.8 pct from 70 pct. "Cathay added new planes, and was forced to fly some routes last year because of the threat of competition from Dragon Air," said Tsang. "This affected its load factor." Fear of possible competition from fledgling carrier <Hong Kong Dragon Airways Ltd> may have contributed to Cathay's decision to resume service to New Zealand last year, analysts said.  
MITSUBISHI CHEMICAL INDUSTRIES LTD <MCIT.T> YEAR. Year ended January 31 Parent shr 5.73 yen vs 5.80 Div five yen vs same Net 7.01 billion vs 6.77 billion Current 24.06 billion vs 23.76 billion Operating 37.62 billion vs 45.26 billion Sales 630.08 billion vs 810.89 billion NOTE - Company forecast for current year parent div five yen, net seven to eight billion, current 24 billion, sales 610 billion.  
CCIC FINANCE LTD - YEAR TO DEC 31. Net profit 16.66 mln H.K. Dlrs vs 11.28 mln Total divs to shareholders 7.5 mln vs nil Note - Firm underwrote 23 capital market issues in 1986. Next industrial transaction in May is syndication of a 35 mln U.S. Dlr loan to the Shanghai Ta Chun Tyre Project. The company is a joint venture merchant bank between the <Bank of China>, <First National Bank of Chicago> and the Industrial Bank of Japan <IBJT.T>  
MACGREGOR SPORTING GOODS INC <MGS>2ND QTR JAN 31. Shr one cent vs nine cts Net 51,057 vs 554,878 Sales 24.5 mln vs 21.3 mln First half Shr 15 cts vs five cts Net 1,026,479 vs 313,676 Sales 48.4 mln vs 37.4 mln NOTE: Net includes gains of 28,000 dlrs, or one cent a share, vs 61,000 dlrs, or seven cts a share, in quarter and 453,000 dlrs, or seven cts a share, vs 61,000 dlrs, or one cent a share, in half from tax loss carryforward  
MICROBILT CORP <BILT> 4TH QTR JAN 31 NET. Shr 15 cts vs 14 cts Net 614,000 vs 449,000 Revs 4,186,000 vs 4,124,000 Avg shrs 4,131,000 vs 3,321,000 Year Shr 47 cts vs 42 cts Net 1,768,000 vs 1,394,000 Revs 15.0 mln vs 12.5 mln Avg shrs 3,799,000 vs 3,324,000  
PAYLESS CASHWAYS INC <PCI> 1ST QTR FEB 28 NET. Shr 10 cts vs seven cts Net 3,501,000 vs 2,420,000 Sales 332.7 mln vs 274.9 mln Qtly div four cts vs four cts prior Pay April Six Record March Six  
NOEL INDUSTRIES INC <NOL> 1ST QTR JAN 31 LOSS. Shr loss 26 cts vs loss 12 cts Net loss 289,649 vs loss 138,372 Revs 5,944,286 vs 5,902,074  
CLOTHESTIME INC <CTME> 4TH QTR NET. Shr 12 cts vs 10 cts Net 1,683,000 vs 1,407,000 Revs 42.2 mln vs 28.8 mln 12 mths Shr 83 cts vs 70 cts Net 11.9 mln vs 10.0 mln Revs 160.3 mln vs 126.5 mln NOTE: prior qtr and yr ended Jan 26.  
CHARTER-CRELLIN INC <CRTR> YEAR NET. Shr 1.40 dlrs vs 1.38 dlrs Net 1,928,800 vs 1,485,600 Sales 35.2 mln vs 33.5 mln Avg shrs 1,350,800 vs one mln  
<SENSORMATIC CANADA LTD> YEAR NET. Shr 26 cts vs 18 cts Net 879,000 vs 615,000 Revs 6,394,000 vs 5,561,000  
DIME SAVINGS BANK OF WALLINGFORD <DIBK> PAYOUT. Qtly div 10 cts vs 10 cts prior Pay April 30 Record April Three  
<CANADIAN FOREMOST LTD> YEAR NET. Shr 38 cts vs 92 cts Net 1,042,000 vs 2,510,000 Revs 20.6 mln vs 29.6 mln  
IMMUNOGENETICS INC <IGEN> YEAR NET. Oper shr profit eight cts vs loss eight cts Oper net profit 604,996 vs loss 615,345 Sales 18.4 mln vs 17.8 mln NOTE: Net excludes losses from discontinued operations of 156,098 dlrs vs 732,924 dlrs. 1986 net excludes tax credits of 271,538 dlrs. 1985 net includes gain 480,0009 dlrs from reversl of recapture taxes.  
<SCURRY-RAINBOW OIL LTD> 1ST QTR DEC 31 NET. Shr 31 cts vs 53 cts Net 4.2 mln vs 7.1 mln Revs 16.1 mln vs 27.2 mln  
MCRAE INDUSTRIES INC <MRI.B> 2ND QTR JAN 31 NET. Shr 19 cts vs three cts Net 515,000 vs 87,000 Revs 6,830,000 vs 4,107,000 Six mths Shr 36 cts vs 12 cts Net 955,000 vs 327,000 Revs 14.2 mln vs 9,755,000  
<FRONTIER TEXAS CORP> 2ND QTR NOV 30 NET. Oper shr profit one ct vs loss four cts Oper net profit 104,386 vs loss 196,265 Revs 8,174,652 vs 2,309,979 Avg shrs 6,285,714 vs 5,500,000 1st half Oper shr profit nil vs loss eight cts Oper net profit 26,541 vs loss 419,758 Revs 12.0 mln vs 5,088,134 Avg shrs 5,836,735 vs 5,500,000 NOTE: Current year net both periods excludes tax credit of 107,370 dlrs.  
ST. JUDE MEDICAL <STJM> VOTES DIVIDEND RIGHTS. St. Jude Medical Inc said its board declared a special dividend of one right for each outstanding share held of the company's common stock, payable to holders of record April Six. It said each right entitles the holder to buy one-tenth of a share of preferred stock of St. Jude at an exercise price of 100 dlrs. St. Jude said the rights may be exercised only after 10 days following the acquisition of, or commencement of a tender offer for, at least 20 pct of the company's common stock. The company added that it has no reason to believe St. Jude Medical is a takeover target.  
MESA LIMITED PARTNERSHIP <MLP> SETS PAYOUT. Qtly div 50 cts vs 50 cts prior Pay May 15 Record April Seven NOTE: Partnership said holders of common and preference units for all of 1987 are expected to have no net taxable income.  
TRANS WORLD MUSIC CORP <TWMC> 4TH QTR JAN 31 NET. Shr 70 cts vs 47 cts Net 4,185,000 vs 2,433,000 Sales 52.9 mln vs 35.7 mln Avg shrs 6,000,000 vs 5,200,000 Year Shr 1.20 dlrs vs 71 cts Net 6,759,000 vs 3,717,000 Sales 130.4 mln vs 85.3 mln Avg shrs 5,622,000 vs 5,200,000  
GRUEN MARKETING <GMC> SEES YEAR NET OFF. Gruen Marketing Corp said it expects to report earnings for the year ended January 31 of 60 to 65 cts per share on about 7,309,000 average shares, down from 78 cts on 6,545,000 shares a year before. It said sales fell about 10 pct from the year-earlier 104.9 mln dlrs.  
FIRST VALLEY CORP <FIVC> REGULAR DIVIDEND. Qtly div 21 cts Payable April 15 Record March 31  
GULF RESOURCES <GRE> SEES 1ST QTR PRETAX PROFIT. Gulf Resources and Chemical Corp said the sale of its stake in <Imperial Continental Gas Association> will result in a pre-tax profit of about 44.1 mln dlrs or 4.69 dlrs per share, fully duliuted, in the first quarter of 1987. Gulf said it sold its remaining stake in Imperial of 6,631,222 shares and 100,000 units of loan stock for 74.8 mln dlrs, based on an exchange rate of one pound sterling at 1.58 dlr. As previously reported, it sold 9,534,633 of its Imperial shares on March nine. Gulf said the sale of the Imperial shares were accepted as part of a recent tender offer made by <Groupe Bruxelles Lambert S.A.> and <Tractebel S.A.>. Under the terms of the offer, Gulf said it is entitled to receive a supplementary payment if a general offer to acquire Imperial Continental or its Calor Group or Contibel Holdings becomes wholly unconditional before Jan 1, 1988 at a price above the tender off of 710 pence per share.  
STERLING INC <STRL> 4TH QTR JAN 31 NET. Shr 1.27 dlrs vs not given Net 5,097,000 vs 3,164,000 Sales 48.1 mln vs 31.7 mln Year Shr 1.42 dlrs vs not given Net 5,194,000 vs 3,457,000 Sales 100.4 mln vs 70.1 mln NOTE: Company went public in May 1986.  
AUTOMATIX INC <AITX> 4TH QTR LOSS. Shr loss 20 cts vs loss 12 cts Net loss 2,195,000 vs loss 1,402,000 Revs 3,600,000 vs 5,777,000 Year Shr loss 71 cts vs loss 51 cts Net loss 7,851,000 vs loss 5,594,000 Revs 16.7 mln vs 24.8 mln  
IONICS INC <ION> 4TH QTR NET. Shr 11 cts vs 24 cts Net 419,000 vs 938,000 Revs 16.2 mln vs 16.9 mln Year Shr 25 cts vs 95 cts Net 952,000 vs 3,001,000 Revs 64.6 mln vs 68.8 mln Backlog 30.3 mln vs 31.9 mln NOTE: 1986 net includes nonrecurring gain 383,000 dlrs in quarter and charge 175,000 dlrs in year.  
CODENOLL TECHNOLOGY CORP <CODN> 4TH QTR LOSS. Shr loss 12 cts vs loss 17 cts Net loss 484,556 vs loss 620,607 Sales 2,167,631 vs 1,062,837 Avg shrs 3,985,924 vs 3,935,969 Year Shr loss 62 cts vs loss 52 cts Net loss 2,468,605 vs loss 1,788,406 Sales 6,603,285 vs 4,650,585 Avg shrs 3,983,692 vs 3,446,348  
CAMPBELL RESOURCES INC 2ND QTR SHR PROFIT THREE CTS VS LOSS 10 CTS.  CAMPBELL RESOURCES INC 2ND QTR SHR PROFIT THREE CTS VS LOSS 10 CTS  
GENETIC LABORATORIES INC <GENL> 2ND QTR LOSS. Period ended Jan 31 Net loss 89,255 vs loss 277,536 Sales 913,136 vs 854,194 Six mths Net profit 481,372 vs loss 555,722 Sales 1,845,532 vs 1,754,076  
CAMPBELL RESOURCES INC <CCH> 2ND QTR DEC 31 NET. Shr profit three cts vs loss 10 cts Net profit 765,000 vs loss 2,600,000 Revs 9,259,000 vs 14,479,000 SIX MTHS Shr profit three cts vs loss 11 cts Net profit 875,000 vs loss 2,303,000 Revs 17.7 mln vs 29.2 mln Note: Campbell changing its yr-end to Dec 31 from June 30.  
AMERTEK INC <ATEKF> YEAR NET. Oper shr 15 cts vs eight cts Oper net 517,333 vs 276,240 Revs 22.4 mln vs 14.0 mln Note: 1986 shr and net exclude extraordinary gain of 1,333,760 dlrs or 40 cts share. 1985 shr and net exclude extraordinary gain of 294,859 dlrs or 10 cts share  
SYSTEMATICS INC <SYST> 3RD QTR FEB 28 NET. Shr 33 cts vs 27 cts Net 3,588,000 vs 2,981,000 Revs 37.8 mln vs 31.6 mln Nine mths Shr 72 cts vs 76 cts Net 7,843,000 vs 8,344,000 Revs 103.3 mln vs 90.8 mln  
AMRE INC <AMRE> 3RD QTR JAN 31 NET. Shr five cts vs one ct Net 196,986 vs 37,966 Revs 15.5 mln vs 8,900,000 Nine mths Shr 52 cts vs 22 cts Net two mln vs 874,000 Revs 53.7 mln vs 28.6 mln  
PORTA SYSTEMS CORP <PSI> 4TH QTR JAN 31 NET. Shr 10 cts vs 11 cts Net 547,000 vs 579,000 Sales 11.0 mln vs 11.1 mln Year Shr 46 cts vs 52 cts Net 2,500,000 vs 2,841,000 Sales 40.7 mln vs 40.5 mln  
FEDERATED DEPARTMENT STORES INC 4TH QTR SHR 3.64 DLRS VS 3.16 DLRS.  FEDERATED DEPARTMENT STORES INC 4TH QTR SHR 3.64 DLRS VS 3.16 DLRS  
<WARNACO GROUP INC> EIGHT MTHS JAN THREE NET. Oper net 46.6 mln Revs 392 mln 12 mths Oper net 65 mln vs 47.1 mln Revs 590 mln vs 591 mln NOTE: Eight months represents earnings following acquisition in May 1986 when company went private. Period ending Jan. 3, 1987 excludes 42.3 mln dlrs of interest expenses, 41.6 mln dlrs of acquisition adjusments, and 1.7 mln dlrs of income taxes.  
GANTOS INC <GTOS> 4TH QTR JAN 31 NET. Shr 43 cts vs 37 cts Net 2,276,000 vs 1,674,000 Sales 31.9 mln vs 23.9 mln Avg shrs 5.3 mln vs 4.5 mln Year Shr 90 cts vs 69 cts Net 4,508,000 vs 3,096,000 Sales 98.4 mln vs 75.0 mln Avg shrs 5.0 mln vs 4.5 mln  
<ATLANTIC EXPRESS INC> 1ST HALF DEC 31 NET. Shr not given Net 788,099 Revs 15.5 mln NOTE: Company went public during 1986.  
NEW MILFORD SAVINGS BANK <NMSB> RAISES PAYOUT. Qtly div 25 cts vs 20 cts prior Pay April 21 Reord March 27  
INSTITUTE OF CLINICAL PHARM PLC <ICPYY> YEAR. Shr 20 ct vs 27 cts Net 1,048,000 vs 1,368,000 Revs 9,457,000 vs 5,386,000 NOTE: Dollar amounts converted from Irish pounds at noon buying rate of the Federal Reserve Bank of New York at Dec 31, 1986, of 1.4105 dlr per one Irish pound. The equivalent rate at Dec 31, 1985, was 1.2470 dlr equals one Irsh pound. Full name of company is The Institute of Clinical Pharmacology PLC, based in Dulbin, Ireland.  
ICN BIOMEDICALS INC <BIMD> 1ST QTR FEB 28 NET. Shr 10 cts vs eight cts Net 856,000 vs 574,000 Sales 9,593,000 vs 9,232,000 Avg shrs 8,809,000 vs 6,969,000  
APPLIED CIRCUIT TECHNOLOGY <ACRT> 1ST QTR LOSS. Period ended January 31. Shr loss two cts vs loss 12 cts Net loss 192,370 vs loss 1,494,146 Revs 6,751,830 vs 2,278,842 Note: Full name Applied Circuit Technology Inc.  
FRISCH'S RESTAURANTS INC <FRS> SETS QUARTERLY. Qtly div 5-1/2 cts vs 5-1/2 cts prior Pay April 16 Record April Six  
FEDERATED DEPARTMENT STORES INC <FDS> 4TH QTR. Jan 31 end Shr 3.64 dlrs vs 3.16 dlrs Net 171.3 mln vs 154.0 mln Sales 3.44 billion vs 3.23 billion Avg shrs 47.1 mln vs 48.8 mln Year Oper shr 6.23 dlrs vs 5.88 dlrs Oper net 301.9 mln vs 286.6 mln Sales 10.51 billion vs 9.98 billion Avg shrs 48.5 mln vs 48.8 mln NOTE: Latest year net excludes 14.3 mln dlr charge from loss on early debt extinguishment. Net includes charges 15.7 mln dlrs in both periods of latest year vs charges 23.9 mln dlrs in both periods of earlier year from merger of divisions. Investment tax credits three mln dlrs vs 8,900,000 dlrs in quarter and 4,900,000 dlrs vs 16.4 mln dlrs in year. Latest year net includes nine mln dlr provision for loss on disposition of two Abraham and Strauss stores and preopening expenses for another. Latest year net includes gain from sale of interest in Fort Worth, Texas, shopping center of 9,500,000 dlrs. Latest year net both periods includes gain 9,100,000 dlrs from sale of interest in Memphis, Tenn., shopping center. Prior year net includes gain 6,600,000 dlrs on sale of Boston Store division.  
CLOTHESTIME INC <CTME> 4TH QTR NET. Shr 12 cts vs 10 cts Net 1,683,000 vs 1,407,000 Sales 42.2 mln vs 28.8 mln Year Shr 83 cts vs 70 cts Net 11,908,000 vs 10,005,000 sales 160.3 mln vs 126.5 mln  
VIDEO LIBRARY INC <VLVL> 4TH QTR LOSS. Shr loss two cts vs profit three cts Net loss 59,299 vs profit 88,843 Revs 3,487,693 vs 2,123,488 Year Shr profit 25 cts vs loss two cts Net profit 816,395 vs loss 44,541 Revs 12.2 mln vs 7,413,328 Avg shrs 3,208,472 vs 2,348,559  
CHEMIE LINZ EXPECTS SHARPLY HIGHER 1986 LOSS. State-owned <Chemie Linz AG> is likely to record a 1986 loss of some 600 mln schillings compared with a 340 mln loss in 1985, a company spokesman said. Falling sales and lower world prices of fertilisers were largely responsible for the sharp increase, along with the effects of the dollar's fall which has helped to give U.S. Fibre producers a competitive edge, he told Reuters. The firm would have made a small profit in 1985 had it not been for 456 mln schillings lost by subsidiary <Merx HandelsgesmbH> on oil trading. Merx has since withdrawn from the oil market. The firm will announce 1986 results in July.  
<CABRE EXPLORATION LTD> SIX MTHS JAN 31 NET. Shr 13 cts vs 13 cts Net 617,000 vs 604,000 Revs 1,889,000 vs 1,920,000  
SCOR U.S. CORP <SURE> 4TH QTR NET. Oper shr 29 cts vs 22 cts Oper net 3.9 mln vs 1.8 mln Year Oper shr 63 cts vs four cts Oper net 10.1 mln vs 855,000 NOTE: Excludes gain one ct per share vs loss two cts in the quarter, and gain 41 cts per share vs gain six cts in the year from investments. Also excludes extraordinary gain of one ct per share in fourth quarter 1985, and gain of one ct per share vs one ct in the full year period.  
GENSTAR SALE BOOSTS BELGIAN SOCIETE GENERALE NET. Societe Generale de Belgique <BELB.BR> said the near doubling of net profits in 1986 was due in large part to the sale of shares in Genstar Corp. The company, which announced a net non-consolidated profit of 5.31 billion francs compared with 2.82 billion in 1985, said its current profits rose by 19 pct last year, without giving further figures. However, it added in a statement that the company made major capital gains on sales during the year, in particular from the sale of Genstar shares. Societe Generale governor Rene Lamy told last November's annual meeting that 1986 asset disposals would total around 4.5 billion francs, including the sale of Genstar shares to Imasco Limited <IMS.TO>. He predicted a profit on extraordinary items of two billion francs after a rough balance in 1985. In today's statement, Societe Generale gave no figures for extraordinary gains.  
WESTERBEKE CORP <WTKB> 1ST QTR JAN 31 LOSS. Shr loss 11 cts vs profit six cts Net loss 217,200 vs profit 83,200 Revs 3,564,200 vs 3,171,900 Avg shrs 2,033,750 vs 1,334,950  
JAMESWAY CORP <JMY> 4TH QTR JAN 31 NET. Shr primary 64 cts vs 45 cts Shr diluted 60 cts vs 44 cts Net 4,524,000 vs 3,212,000 Revs 202.5 mln vs 171.9 mln Avg shrs primary 7,112,480 vs 7,052,964 Avg shrs diluted 8,034,223 vs 8,008,763 Year Shr primary 1.70 dlrs vs 1.31 dlrs Shr diluted 1.65 dlrs vs 1.30 dlrs Net 12.1 mln vs 9,252,000 Year Revs 612.4 mln vs 523.4 mln Avg shrs primary 7,112,480 vs 7,052,964 Avg shrs diluted 8,034,223 vs 7,732,544 Note: Includes after-tax LIFO charges of 441,000 dlrs vs 359,000 dlrs for qtr and 539,000 dlrs vs 407,000 dlrs for year.  
SHONEY'S INC <SHON> 1ST QTR FEB 15 NET. Shr 31 cts vs 27 cts Qtly div four cts vs four cts prior Net 11.4 mln vs 9,905,528 Revs 194.3 m ln vs 171.7 mln Note: Qtly div is payable April 22 to shareholders of record April three.  
<NOMA INDUSTRIES LTD> YEAR NET. Shr 72 cts vs 58 cts Net 20.8 mln vs 14.9 mln Revs 328.7 mln vs 239.8 mln Avg shrs 28.9 mln vs 25.7 mln Note: Prior year shr restated for June, 1986 two-for-one stock split  
NOEL INDUSTRIES INC <NOL> 1ST QTR JAN 31 LOSS. Shr loss 26 cts vs loss 12 cts Net loss 289,649 vs loss 138,372 Revs 5,944,286 vs 5,902,074  
OSHMAN'S SPORTING GOODS INC <OSHM> 4TH QTR NET. Qtr ended Jan 31 Shr 92 cts vs 1.28 dlrs Net 5,415,000 vs 7,730,000 Revs 114.2 mln vs 112.9 mln Avg shrs 5,864,000 vs 6,030,000 Year Shr 45 cts vs 1.40 dlrs Net 2,664,000 vs 8,536,000 Revs 322.9 mln vs 312.3 mln Avg shrs 5,885,000 vs 6,105,000  Note: Net includes LIFO gains of 48,000 dlrs vs 118,000 dlrs for qtr and charges of 257,000 dlrs vs 225,000 dlrs for year.  
UNIVERSITY PATENTS INC <UPT> 2ND QTR JAN 31 NET. Oper shr 24 cts vs 19 cts Oper net 1,096,332 vs 794,711 Revs 803,085 vs 442,420 Six mths Oper shr 53 cts vs 43 cts Oper net 2,375,844 vs 1,741,437 Revs 1,471,257 vs 768,683 NOTE: Prior year excludes income from discontinued operations of 19 cts per share in the quarter and 17 cts per share in the year.  
FREEDOM FEDERAL <FRFE> SETS INITIAL PAYOUT. Freedom Federal Savings Bank said it voted its first cash dividend of 10 cts a share, payable April 10, record March 31. The 1987 annual dividend will be 40 cts a share, it said.  
HOSPITAL STAFFING SERVICES <HSSI> 1ST QTR NET. Qtr ends Feb 28 Shr six cts vs three cts Net 189,683 vs 80,499 Revs 2,874,930 vs 2,594,474 NOTE: Full name Hospital Staffing Services Inc. Prior year includes extraordinary gain of one ct per share.  
OSHMAN'S <OSHM> CITES WEAK REGIONAL ECONOMIES. Oshman's Sporting Goods Inc said earnings for the fourth quarter ended January 31 were affected by the weak economies of Texas, Oklahoma and Louisiana, resulting in a drop in net earnings to 5,415,000 dlrs or 92 cts a share from 7,730,000 dlrs or 1.28 dlrs a share for the year-ago quarter. The company also said sales on the West Coast were hurt by late snows and poor skiing conditions. Same-store sales declined 3.2 pct for the quarter and 2.2 pct for the year. For the full year, Oshman's net earnings fell to 2,664,000 dlrs or 45 cts a share, from 8,536,000 dlrs or 1.40 dlrs a share. In 1986, the company said it opened nine stores and closed three. At year-end, the company said it was operating 188 Oshman's stores and 27 Abercrombie and Fitch stores.  
WORTHINGTON INDUSTRIES INC <WTHG> 3RD QTR NET. Qtr ended Feb 28 Shr 24 cts vs 24 cts Net 10.0 mln vs 10.1 mln Revs 202.8 mln vs 184.6 mln Nine mths Shr 66 cts vs 67 cts Net 27.3 mln vs 27.6 mln Revs 588.2 mln vs 539.2 mln Note: 1986 shr data adjusted for 3-for-2 stock split paid October 1986.  
(REPAP ENTERPRISES CORP INC) 4TH QTR NET. Shr profit 26 cts vs loss nine cts Net profit 10.3 mln vs loss 1.0 mln Revs 208.2 mln vs 123.3 mln Year Shr profit 38 cts vs profit nine cts Net profit 13.0 mln vs profit 2.8 mln Revs 635.5 mln vs 429.3 mln Note: 1986 full year results include extraordinary loss of one mln dlrs or three cts per share.  
VTX ELECTRONICS CORP <VTX> 4TH QTR NET. Shr 10 cts vs 11 cts Net 255,000 vs 242,000 Sales 7,166,000 vs 6,486,000 Avg shrs 2,438,000 vs 2,118,000 Year Shr 50 cts vs 40 cts Net 990,000 vs 849,000 Sales 29.0 mln vs 22.8 mln Avg shrs 1,972,000 vs 2,118,000 NOTE: Share adjusted for five-for-four stock split declared today.  
MORTGAGE GROWTH INVESTORS <MTG> 1ST QTR FEB 28. Shr 36 cts vs 37 cts Net 2,751,000 vs 2,179,000 Qtly div 40 cts vs 40 cts prior Avg shrs 7,699,241 vs 5,943,341 NOTE: Dividend payable April 10 to shareholders of record March 30.  
SHONEY'S INC <SHON> 1ST QTR FEB 15 NET. Shr 31 cts vs 27 cts Net 11.4 mln vs 9,905,528 Revs 194.3 mln vs 171.7 mln Avg shrs 36.6 mln vs 36.4 mln NOTE: Sixteen-week periods.  
PHOTOGRAPHIC SCIENCIES CORP <PSCX> 4TH QTR LOSS. Oper shr loss six cts vs profit four cts Oper net loss 165,000 vs profit 83,000 Sales 2,413,000 vs 921,000 Avg shrs 2,908,770 vs 2,203,462 Year Ope shr profit five cts vs profit five cts Oper net profit 124,000 vs profit 106,000 Sales 5,652,000 vs 1,623,000 Avg shrs 2,369,949 vs 2,061,102 NOTE: Net excludes losses from discontinued operations of 548,000 dlrs vs 14,000 dlrs in quarter and 696,000 dlrs vs 21,000 dlrs in year. 1985 year net excludes 35,000 dlr tax credit. 1985 year includes only six months of operations due to change in fiscal year.  
PUEBLO INTERNATIONAL INC <PII> 4TH QTR JAN 31. Shr 56 cts vs 46 cts Net 2,005,000 vs 1,685,000 Sales 189.8 mln vs 156.0 mln Avg shrs 3,603,000 vs 3,614,000 Year Shr 1.88 dlrs vs 1.77 dlrs Net 6,774,000 vs 6,587,000 Sales 692.1 mln vs 596.8 mln Avg shrs 3,604,000 vs 3,713,000 NOTE: Net includes tax credits of 250,000 dlrs vs 162,000 dlrs in quarter and 610,000 dlrs vs 1,288,000 dlrs in year. Thirteen vs 12 and 53 vs 52-week periods. Latest year net includes gain 418,000 dlrs for first nine months from change in pension accounting, for which results of first three periods restated.  
HRE PROPERTIES <HRE> 1ST QTR JAN 31 NET. Shr 38 cts vs 47 cts Net 2,253,664 vs 2,806,820 Gross income 5,173,318 vs 5,873,904 NOTE: Net includes gains on sale of real estate of 126,117 dlrs vs 29,812 dlrs.  
PHOTOGRAPHIC SCIENCES CORP <PSCX> 4TH QTR. Shr loss 25 cts vs profit three cts Net loss 713,000 vs profit 69,000 Revs 2.4 mln vs 921,000 Six months Shr loss 24 cts vs profit six cts Net loss 572,000 vs profit 120,000 Revs 5.7 mln vs 1.6 mln NOTE:To effect change from fiscal to calendar year, company reported results for six months period ended December 31, 1985. 1985 six months includes one time gain of 35,000 dlrs.  
FEDERAL PAPER BOARD CO <FBT> SETS PAYOUT. Qtly div 17-1/4 cts vs 17-1/4 cts prior Pay April 15 Record March 31  
SHONEY'S INC <SHON> SETS PAYOUT. Qtly div four cts vs four cts prior Pay April 22 Record April Three  
CONSOLIDATED STORES CORP <CNS> 4TH QTR JAN 31 NET. Shr 17 cts vs 13 cts Net 7,602,000 vs 4,879,000 Sales 141.5 mln vs 71.3 mln Avg shrs 45.0 mln vs 42.2 mln Year Shr 45 cts vs 32 cts Net 19.5 mln vs 12.0 mln Sales 397.2 mln vs 181.1 mln Avg shrs 43.4 mln vs 38.2 mln NOTE: Prior year net includes 2,600,000 dlr tax credit. Share adjusted for two-for-one stock split in June 1986.  
HOSPITAL STAFFING SERVICES INC <HSSI> 1ST QTR. Feb 28 Oper shr six cts vs two cts Oper net 189,683 vs 47,499 Revs 2,874,930 vs 2,594,574 NOTE: Prior year net excludes 33,000 dlr tax credit.  
VIATECH INC <VTK> YEAR NET. Shr 1.53 dlrs vs 18 cts Net 841,893 vs 95,477 Revs 50.3 mln vs 35.1 mln  
INTERACTIVE TECHNOLOGIES INC <ITXI> 1ST QTR NET. Shr nine cts vs eight cts Net 373,000 vs 269,000 Sales 3,501,000 vs 2,507,000 Avg shrs 4,036,000 vs 3,326,000 NOTE: Periods end January 31, 1987 and 1986, respectively.  
SANTA ANITA COS <SAR> 4TH QTR NET. Oper shr 45 cts vs 63 cts Oper net 3,805,000 vs 5,155,000 Revs 12.0 mln vs 10.6 mln Year Oper shr 1.58 dlrs vs 2.07 dlrs Oper net 12,991,000 vs 15,692,000 Revs 69.8 mln vs 71.7 mln Avg shrs 8,265,541 vs 7,598,522 Note: Current qtr and year figures exclude losses from discontinued operations of 761,000 dlrs and 875,000 dlrs, respectively and disposition gain of 6.1 mln dlrs in both periods. Prior qtr and year figures exclude gain from discontinued operation of 31,000 dlrs and loss of 2,000 dlrs, respectively.  
EQUION CORP <EQUI> 2ND QTR JAN 31 NET. Oper shr 19 cts vs 18 cts Oper net 951,902 vs 987,860 Revs 19.0 mln vs 17.1 mln Six mths Oper shr 26 cts vs 35 cts Oper net 1,332,273 vs 2,502,868 Revs 33.6 mln vs 29.2 mln Note: Oper net excludes tax credits of 897,925 dlrs vs 841,511,dlrs for qtr and 1,306,860 dlrs vs 2,132,073 dlrs for six mths. Note: Year-ago results restated to reflect change in accounting principle effective August one, 1985.  
<TEMCO SERVICE INDUSTRIES INC> 1ST QTR DEC 31. Shr 31 cts vs 21 cts Net 182,839 vs 132,804 Revs 25.0 mln vs 19.4 mln  
<GREAT PACIFIC INDUSTRIES INC> YEAR NET. Shr 1.93 dlrs vs 2.21 dlrs Net 8,371,000 vs 9,576,000 Revs 18.3 mln vs 15.7 mln  
SIMMONS AIRLINES INC <SIMM> 2ND QTR LOSS. Period end Jan 31 Shr loss 17 cts vs loss 26 cts Net loss 765,808 vs loss 1,216,501 Revs 15.8 mln vs 18.7 mln Six mths Shr nil vs profit 54 cts Net loss 12.5 mln vs profit 2,538,030 Revs 32.5 mln vs 42.6 mln Avg shrs 4,310,068 vs 4,712,315 NOTE: Prior yr results restated to reflect change in value of aircraft, resulting in increase of 232,000 or five cts shr for six mths  
PUBLIC SERVICE ENTERPRISE <PEG> TWO MTHS NET. Periods ended February 28 Shr 89 cts vs 87 cts Net 119.5 mln vs 114.6 mln Revs 872.3 mln vs 917.4 mln Avg shrs 134.9 mln vs 131.7 mln 12 mths Shr 2.87 dlrs vs 3.32 dlrs Net 383.4 mln vs 413.5 mln Revs 4.5 billion vs 4.4 billion Avg shrs 133.7 mln vs 124.7 mln NOTES: Year ago results restated to reflect application of new accounting for disallowances Full name is Public Service Enterprise Group Inc  
REYNOLD METALS <RLM> UP ON FURMAN SELZ REPORT. Shares of Reynolds Metals Co rose sharply after Wall Street firm Furman Selz Mager Dietz and Birney issued a report focusing on the strong earnings potential from the company's Australian gold holding, traders familiar with the report said. Traders said the report notes that earnings from Australian gold holdings could be worth about 35 cts to 55 cts a share this year and 1.40 dlrs to two dlrs a share in 1988. Reynolds Metals rose three points to 59-5/8 on volume of 729,500 shares. Reynolds owns stakes in the Mount Gibson gold project and the Boddington gold project, both located in Australia. An analyst familiar with the two mines said "the properties, together, have a potential value of 20 dlrs to 40 dlrs a share for Reynolds." The analyst, who asked not to be identified, said the rise in the stock today was likely the result of "U.S. investors that were not completely cognizant of the size or the importance of the (Reynolds') holdings in Australia." Traders said the Furman Selz report indicates that gold was discovered mixed with bauxite in the Boddington mine. Boddington is principally a bauxite mine. The traders said the report goes on to say that the profits from the Boddington gold with substantially reduce the production costs of the other metals mined at Boddington. Traders said Furman Selz also boosted its earnings estimates, expecting Reynolds Metals to earn 4.10 dlr a share in 1987 and eight dlrs a share in 1988. Last year, Reynolds reported net earnings of 8.18 dlrs a share, which included 3.09 dlrs a share for adoption of new accounting rules, 1.01 dlrs a share for tax loss carryforwards and other extraordinary items.  
17-MAR-1987. 17-MAR-1987 
WESTERN FEDERAL SAVINGS BANK <WFPR> UPS PAYOUT. Qtly div 15 cts vs 12-1/2 cts prior Pay April 15 Record March 31  
DIODES INC <DIO> 3RD QTR JAN 31 NET. Shr profit one cts vs profit four cts Net profit 27,490 vs 89,687 Sales 2,899,189 vs 2,785,931 Nine mths Shr loss four cts vs profit nine cts Net loss 78,038 vs profit 184,062 Sales 8,785,918 vs 8,273,913  
MONY REAL ESTATE INVESTORS <MYM> 3RD QTR FEB 28. Oper shr nine cts vs 128 cts Qtly div 18 cts vs 22 cts prior Oper net 951,000 vs 1,817,000 Total income 5,010,000 vs 5,575,000 Nine mths Oper shr 39 cts vs 59 cts Oper net 4,014,000 vs 5,936,000 Total income 15.2 mln vs 16.7 mln NOTE: Current year net both periods includes 750,000 dslr provision for possible losses. Net excludes gains from sale of investment of 1,461,000 dlrs vs 346,000 dlrs in quarter and in nine mths. Dividend pay April 15, record March 31.  
HILTON <HLT> SEES IMPROVED FIRST QUARTER PROFITS. Hilton Hotels Corp expects earnings per share for first quarter fiscal 1987 to March 31 to be about 90 cts compared with 70 cts a year earlier, Hilton Hotels division president Carl Mottek said. He told a news conference the company expected costs for its first 10 all-suite hotels, announced today, to be about 150 mln dlrs. Initial financing would come from the company's cash flow. Later, Hilton plans to use borrowings from traditional sources, he added. Hilton, which hopes to build 50 all-suite hotels within five years, may take in partners in the new venture, he added.  
H.J. HEINZ <HNZ> POISED FOR RECORD YEAR. H.J. Heinz Co is "within sight of our 22nd consecutive year of new records in financial growth" for the fiscal year ending April 30, Chairman and Chief Executive Officer Anthony O'Reilly told investment analysts. O'Reilly, who declined to make a specific projection, said the food company is "stronger than at any time in its 118-year history." Last week Heinz reported third-quarter earnings rose to 55 cts a share from 46 cts a share. Sales rose to 1.08 billion dlrs from 1.01 billion dlrs a year earlier. O'Reilly said Heinz will concentrate on backing its big brands, new products and services, new geography, internal growth and acquisitions. He said Heinz Ketchup has its highest market share in history, 55 pct. But in response to a question, the executive said a volume falloff in the overall product category "is a concern to us." O'Reilly said Weight Watchers continues to perform well and will generate revenue in fiscal 1987 of approximately 940 mln dlrs. O'Reilly told analysts Heinz is in active negotiations to build a second plant in China, where it entered a joint venture with the government in 1984, forming Heinz-UFE Ltd, which produces dry baby food cereal. He said Heinz-Japan is "making a profit and generating its first substantial dividends," and implementation of a new partnership, Seoul-Heinz Ltd, is moving ahead with a new manufacturing plant targeted for completion by June in Seoul, South Korea. To increase its competitiveness, O'Reilly said Heinz implemented a "lowest cost imaginable" program targeted at manufacturing, sales and marketing and procurement. He said a modernization program is in effect at the company's United Kingdom operations, where the labor force, trimmed to 4,000 from 10,000, is expected to be further reduced to 2,500 in 1988.  
MARCOR <MAAR> EXPECTS FISCAL YEAR PROFIT. MarCor Development Co Inc said it expects to post a profit for its fiscal year ended February 28 of about two mln dlrs, compared to a year earlier loss of 3.2 mln dlrs. During the prior year the company operated as F and M Importing, a publicly-held wholesale food distributor. During March last year privately-held Marcor acquired a controlling interest in F and M Importing, divested the food business, renamed the company and began operating as a real estate investment and service company.  
VALLEY RESOURCES (VR) SETS STOCK SPLIT, UPS PAYOUT. Valley Resources Inc said its board declared a three-for-two stock split and raised the quarterly cash dividend on the pre-split shares to 42 cts from 38 cts. The company said both the split and the dividend are payable April 15 to holders of record March 31.  
INTERDYNE CO <IDYN> 1ST QTR FEB 1 LOSS. Shr loss 28 cts vs loss 80 cts Net loss 2,150,000 vs loss 3,722,000 Sales 1,478,000 vs loss 2,097,000  
KILLEARN PROPERTIES INC <KPI> 3RD QTR NET. Qtr ends Jan 31 Shr 23 cts vs eight cts Net 309,963 vs 110,356 Revs 2,503,451 vs 1,351,076 Nine mths Shr 62 cts vs 25 cts Net 851,776 vs 331,666 Revs 6,739,351 vs 4,107,713  
<GATEWAY MEDICAL SYSTEMS INC> 3RD QTR LOSS. Period end Jan 31 Shr loss one cts vs profit eight cts Net loss 52,198 vs profit 602,766 Revs 18.6 mln vs 7,833,424 Nine mths Shr profit 10 cts vs profit six cts Net profit 809,243 vs profit 393,372 Revs 36.3 mln vs 18.7 mln  
SPARTECH CORP <SPTN> 1ST QTR JAN 31 NET. Shr two cts vs three cts Net 369,000 vs 347,000 Revs 21.3 mln vs 14 mln NOTE: Per shr reflects payment of preferred dividends.  
ACADEMY INSURANCE GROUP INC <ACIG> 4TH QTR NET. Shr profit two cts vs loss 1.05 dlrs Net profit 1,666,000 vs loss 18,306,000 Revs 29.1 mln vs 28.3 mln Avg shrs 69.1 mln vs 17.5 mln Year Shr loss 21 cts vs loss 2.72 dlrs Net loss 7,571,000 vs loss 45,517,000 Revs 117.4 mln vs 123.3 mln Avg shrs 35.4 mln vs 16.7 mln NOTE: Results include losses of nil vs 473,000 dlrs, or three cts a share, in quarter and 921,000 dlrss, or three cts a share, vs 1,137,000 dlrs or seven cts a share, in year from discontinued operations  
ESSEX CHEMICAL CORP <ESX> REGULAR DIVIDEND. Qtly div 15 cts vs 15 cts in prior qtr Payable May 11 Record April 10  
HRE PROPERTIES <HRE> 1ST QTR ENDS JAN 31 NET. Shr 38 cts vs 47 cts Net 2,253,664 vs 2,806,820 Revs 5,173,318 vs 5,873,904 NOTE: 1987 qtr includes 126,117 dlrs, or two cts per share, from gains on sale of property, vs gain 29,812, or less than one cent per share, for prior qtr.  
JAYARK CORP <JAYA> 3RD QTR ENDS JAN 31 LOSS. Shr nil vs nil Net loss 77,879, vs loss 65,501 Revs 3,895,741 vs 4,872,163 Nine mths Shr profit nine cts vs profit two cts Net profit 488,898 vs profit 118,208 Revs 13.0 mln vs 15.8 mln  
<BIO-VASCULAR INC> 1ST QTR JAN 31 LOSS. Shr loss three cts vs profit two cts Net loss 54,791 vs profit 28,866 Sales 137,9810 vs 338,886 Avg shrs 1,602,717 vs 1,331,739  
GREAT AMERICAN MANAGEMENT <GAMI> 2ND QTR LOSS. Period ended Jan 31 Shr loss 89 cts vs loss 82 cts Net loss 5,187,000 vs loss 5,362,000 Revs 128.4 mln vs 50.3 mln Six mths Shr loss 1.27 dlrs vs loss 1.04 dlrs Net loss 7,015,000 vs loss 6,790,000 Revs 264.7 mln vs 97.3 mln NOTE: Full name is Great American Management and Investment Inc  
ACADEMY INSURANCE GROUP INC <ACIG> 4TH QTR NET. Oper shr profit one ct vs loss 1.14 dlrs Oper net profit 435,000 vs loss 19.9 mln Year Oper shr loss 28 cts vs loss 2.78 dlrs Oper net loss 10 mln vs loss 46.5 mln NOTE: Excludes investment gains of one ct per share vs 12 cts in the quarter, and gains 10 cts per share vs 13 cts in the year. Excludes loss from discontinued operations of three cts per share in fourth quarter 1985, and loss of 21 cts per share vs loss 2.72 dlrs in the year.  
MANUFACTURERS HANOVER CORP <MHC> SETS DIVIDEND. Qtly div 82 cts vs 82 cts prior Pay April 25 Record April one  
WILLIAMS INDUSTRIES INC <WMSI> 2ND QTR NET. Qtr ended Jan 31 Shr 10 cts vs three cts Net 194,842 vs 54,200 Revs 22.2 mln vs 11.2 mln Six mths Shr 50 cts vs 28 cts Net 965,924 vs 502,008 Revs 43.8 mln vs 21.6 mln Note: Current six mths revs include 16.8 mln dlrs in revs from John F. Beasley Construction Co, a wholly owned unit.  
<HANOVER COS INC> 3RD QTR JAN 31 LOSS. Oper shr loss 26 cts vs profit 22 cts Oper net loss 672,879 vs profit 596,760 Revs 2,188,678 vs 2,364,280 Nine mths Oper shr loss 1.60 dlrs vs profit 92 cts Oper net loss 4,278,055 vs profit 2,472,532 Revs 5,896,322 vs 7,497,782 Note: Oper net excludes tax gains of 596,000 dlrs for year-ago qtr and 2,173,000 dlrs for year-ago nine mths.  
HOWELL CORP <HWL> 4TH QTR LOSS. Shr profit six cts vs profit 17 cts Net profit 269,000 vs profit 833,000 Revs 28.0 mln vs 30.8 mln Nine mths Shr loss 4.16 dlrs vs profit 74 cts Net loss 20.0 mln vs profit 3,543,000 Revs 93.1 mln vs 117.7 mln Note: Current qtr net includes writedown of 20.4 mln dlrs of net investment in company's oil and gas properties. Year-ago results restated to reflect reclassification of coal mining and marketing segment as ongoing operation rather than discontinued operation.  
SIGMAFORM CORP <SGMA> 3RD QTR JAN 31 NET. Shr one ct vs five cts Net 42,469 vs 226,791 Sales 7,963,620 vs 6,886,414 Nine mths Shr 12 cts vs 22 cts Net 490,927 vs 949,650 Sales 24.0 mln vs 18.7 mln  
MARCUS CORP <MRCS> 3RD QTR FEB FIVE NET. Shr 14 cts vs 15 cts Net 733,000 vs 788,000 Revs 31.9 mln vs 28.9 mln Nine Mths Shr 1.08 dlrs vs 1.20 dlrs Net 5,560,000 vs 6,162,000 Revs 104.5 mln vs 97.2 mln NOTE: 1987 net includes tax credits of 25,000 dlrs in the third quarter and 100,000 dlrs in the nine months compared with 370,000 dlrs and 910,000 dlrs in the 1986 periods.  
FIRSTCORP INC <FCR> RAISES QTLY DIVIDENDS. Qtly div class A nine cts vs 7.5 cts prior Qtly div class B nine cts vs 7.5 cts prior Pay April 30 Record March 31  
REALTY SOUTH INVESTORS INC <RSI> YEAR NET. Shr 1.03 dlrs vs 82 cts Net 1,982,296 vs 1,359,273 Revs 2,403,481 vs 1,494,304 Investments 22.4 mln vs 11.5 mln NOTE: Shr figures adjusted for 3-for-2 split Feb 23, 1987. 1985 results reflect operations for eight months ended Dec 31, 1985. Company began operating May 1985.  
TURNER EQUITY INVESTORS INC <TEQ> PAYOUT. Qtly cash distribution 20 cts vs 20 cts prior Pay April eight Record March 27  
WAUSAU PAPER MILLS CO <WSAU> 2ND QTR NET. Period ended Feb 28 Shr 61 cts vs 56 cts Net 2,764,000 vs 2,540,000 Sales 60.4 mln vs 55.8 mln Six mths Shr 1.27 dlrs vs 1.15 dlrs Net 5,741,000 vs 5,269,000 Sales 122.8 mln vs 109.9 mln NOTE: Per-share data restated for 10 pct stock dividends paid to holders of record Dec 26, 1986 and Dec 26, 1985  
TAUNTON SAVINGS BANK <TSBK> SETS FIRST DIVIDEND. Taunton Savings Bank said its board declared an initial cash dividend of six cts per share. Taunton, which went public last June, said the rate was based on 3,220,000 outstanding shares. It said the dividend was payable April 15 to shareholders of record March 31. The company said it did not know if it would pay regular dividends in the future.  
FIBRONICS INTERNATIONAL INC <FBRX> 4TH QTR LOSS. Shr loss 14 cts vs loss one ct Net loss 836,327 vs loss 34,926 Revs 8,939,390 vs 8,136,160 Year Shr loss 34 cts vs loss nil Net loss 2,008,103 vs loss 14,078 Revs 30.1 mln vs 28.0 mln Note: Year-ago results restated to reflect acquisition of Spartacus Inc in Febaruary 1986.  
TELEPHONE AND DATA SYSTEMS INC <TDS> YEAR NET. Oper shr 94 cts vs 93 cts Oper net 8,889,000 vs 8,570,000 Revs 155.0 mln vs 123.4 mln Avg shrs 9,450,000 vs 9,174,000 NOTE: Net excludes discontinued operations a gain of 4,679,000 dlrs, or 50 cts a share vs a loss of 720,000 dlrs, or seven cts a share. 1986 net includes charge of 865,000 dlrs from repeal of investment tax credits Company corrects 1985 year per-share operating net in table which originally ran march 10  
CPC INTERNATIONAL INC <CPC> QTLY DIV. Shr 31 cts vs 31 cts prior Payable April 24 Record March 31  
PUBLIC SERVICE ENTERPRISE <PEG> TWO MONTHS NET. Period ends February 28 Shr 89 cts vs 87 cts Net 119.5 mln vs 114.6 mln Revs 872.3 mln vs 917.4 mln Year Shr 2.87 dlrs vs 3.32 dlrs Net 383.4 mln vs 413.6 mln Revs 4.45 billion vs 4.45 billion NOTE: Full name Public Service Enterprise Group Inc.  
DAMON CREATIONS INC <DNI> 4TH QTR JAN THREE NET. Shr profit 49 cts vs loss 41 cts Net profit 543,000 vs loss 457,000 Revs 10.4 mln vs 14.2 mln Year Shr loss 71 cts vs loss 2.11 dlrs Net loss 781,000 vs loss 2,325,000 Revs 38.9 mln vs 44.9 mln  
GATES LEARJET CORP <GLJ> 4TH QTR LOSS. Shr loss 12 cts vs loss 99 cts Net loss 1,476,000 vs loss 11,965,000 Sales 83.4 mln vs 110.9 mln Year Shr loss 1.79 dlrs vs loss 1.90 dlrs Net loss 21,720,000 vs loss 22,969,000 Sales 259.0 mln vs 317.3 mln  
CPC INTERNATIONAL INC <CPC> REGULAR DIVIDEND. Qtly div 31 cts vs 31 cts prior Pay April 24 Record March 31  
<CIMARRON PETROLEUM LTD> NINE MTHS NET. Shr 48 cts vs 64 cts Net 1,959,404 vs 2,621,778 Revs 5,132,626 vs 8,167,401  
ELECTRO AUDIO DYNAMICS INC <EAD> 2ND QTR JAN 31. Shr profit 14 cts vs loss 55 cts Net profit 864,000 vs loss 2.1 mln Revs 24.2 mln vs 1.5 mln Six months Shr profit seven cts vs loss 74 cts Net profit 434,000 vs loss 2.7 mln Revs 42.5 mln vs 2.9 mln NOTE:1986 2nd qtr and six months includes loss of 600,000 dlrs and 285,000 dlrs respectively from discontinued operations and exclude operations of Action DRug Co Inc acquired by company's 81 pct owned subsidiary, Technodyne, in August 1986. 1987 net includes gain of 2.0 mln dlrs from sale of building and extraordinary gain of 411,000 dlrs from tax loss carryforward. Share earnings for both periods reflect preferred stock dividends.  
TECHNODYNE INC <TND> 2ND QTR NET. Shr profit 14 cts vs loss 17 cts Net profit 686,000 vs loss 831,000 Revs 24.2 mln vs 1.5 mln Six mths Shr profit 22 cts vs loss 17 cts Net profit 1,062,000 vs loss 812,000 Revs 42.5 mln vs 2.9 mln NOTE: Quarter ends January 31. 1986 excludes extraordinary gain of six cts per share in the quarter and 10 cts in the six months. 1985 excludes discontinued operations loss of six cts a share in the quarter and loss of two cts in the six months. Company is 81.5 pct owned by Electro Audio Dynamics <EAD>.  
<SCEPTRE INVESTMENT COUNSEL LTD> 1ST QTR NET. Period ended January 31 Shr 22 cts vs 16 cts Net 518,564 vs 374,198 Revs 2,090,724 vs 1,614,079  
D/P SELECTED UTILITIES <DNP> HIKES PAYOUTS. Duff and Phelps Selected Utilities Inc said it approved payment of higher monthly dividends. The closed end-investment company approved payment of 4.5 cts on April 10, record March 31; of five cts, payable May 11, record April 30; and of 5.5 cts, payable June 10, record May 29. Duff and Phelps first monthly dividend of four cts was paid on March 10, it noted.  
AMERICAN ELECTROMEDICS CORP <AECO> 2ND QTR LOSS. Qtr ends Jan 31 Shr loss three cts vs loss six cts Net loss 93,000 vs loss 191,000 Revs 338,000 vs 554,000 Six mths Shr loss four cts vs loss seven cts Net loss 108,000 vs loss 219,000 Revs 854,000 vs 1,283,000 NOTE: Company is 80 pct owned by Technodyne Inc <TND>, a subsidiary of Electro Audio Dynamics Inc <EAD>.  
PHP HEALTHCARE CORP <PHPH> 3RD QTR JAN 31 NET. Shr 10 cts vs 10 cts Net 358,941 vs 299,838 Revs 8,645,289 vs 4,532,175 Avg shrs 3,446,752 vs 2,921,173 Nine mths Shr 23 cts vs 12 cts Net 705,799 vs 491,076 Revs 21.5 mln vs 11.0 mln Avg shrs 3,093,491 vs 4,068,000 Note: Net includes tax credits of 164,000 dlrs vs 123,634 dlrs for qtr and 311,000 dlrs vs 207,719 dlrs for nine mths.  
BANKERS TRUST NEW YORK CORP <BT> QTLY DIVIDEND. Qtly div 41.5 cts vs 41.5 cts prior Pay April 28 Record March 31  
HALLWOOD GROUP INC <HWG> 2ND QTR JAN 31 LOSS. Shr loss nine cts vs profit 23 cts Net loss 418,000 vs profit 1,037,000 Revs 2,872,000 vs 4,700,000 Six mths Shr profit nine cts vs profit 52 cts Net profit 418,000 vs profit 2,365,000 Revs 6,853,000 vs 9,379,000 NOTE: Includes tax loss carryforward gains of 164,000 dlrs vs 551,000 dlrs in quarter, and gains of 365,000 dlrs vs 1,016,000 dlrs in the six months.  
CATHAY PACIFIC AIRWAYS 1986 NET PROFIT 1.23 BILLION H.K. DLRS VS 777.5 MLN.  CATHAY PACIFIC AIRWAYS 1986 NET PROFIT 1.23 BILLION H.K. DLRS VS 777.5 MLN  
CATHAY PACIFIC AIRWAYS LTD <CAPH.HK> YEAR 1986. Shr 46.5 H.K. Cents vs 29.3 Final div 14 cents, making 20 cents (no comparison) Net 1.23 billion dlrs vs 777.5 mln Turnover 9.06 billion dlrs vs 7.52 billion Note - Dividend payable May 29, books close May 11 to 22. Note - Company floated in April 1986 and is now 50.23 pct owned by Swire Pacific Ltd <SWPC.HK>, 16.43 pct by Hongkong and Shanghai Banking Corp <HKBH.HK> and 12.5 pct by <China International Trust and Investment Corp>.  
<SUN HUNG KAI CO LTD> YEAR 1986. Shr 21.6 H.K. Cents vs 12 Final div six cents vs three, making nine cents vs 5.5 Net 121 mln dlrs vs 67.42 mln Note - Extraordinary gains 72 mln dlrs vs 2.7 mln. Special bonus four cents vs nil. Dividend payable May 25, books close April 28 to May 6.  
United Biscuits pretax profit 125.2 mln stg vs 102.2 mln in 53 wks to Jan 3.  United Biscuits pretax profit 125.2 mln stg vs 102.2 mln in 53 wks to Jan 3  
UNITED BISCUITS <UBIS.L> 53 WEEKS TO JANUARY 3. Shr 20.3p vs 19.1p Div 6.0p vs 5.15p making 9.5p vs 8.0p Turnover 1.93 billion stg vs 1.91 billion Pretax profit 125.2 mln vs 102.2 mln Tax 42.5 mln vs 31.1 mln Trading profit 138.0 mln vs 122.7 mln Trading profit includes - UB Foods Europe 88.7 mln vs 78.4 mln UB Restaurants 10.3 mln vs same UB Foods U.S. 43.8 mln vs 39.1 mln Other 3.9 mln vs 3.5 mln Unallocated costs 8.7 mln vs 8.6 mln Interest 12.8 mln vs 20.5 mln Note - full name of company is United Biscuits (Holdings) Plc Minority interests 0.1 mln vs same Extraordinary charges 6.8 mln vs 14.3 mln Extraordinary charges and credits include - Surplus on bid for Imperial Group Plc 4.9 mln vs nil Costs of Philadelphia bakery closure nil vs 19.6 mln  
CATHAY PACIFIC FORECASTS GOOD 1987 PERFORMANCE. Cathay Pacific Airways Ltd <CAPH.HK> forecast another good year in 1987 in view of good growth in both passenger and cargo traffic volumes early this year over the year-earlier period. The airline did not quantify its performance in early 1987 but said it would take delivery of one Boeing Co <BA.N> 747 freighter and one Boeing 747-300 passenger plane in September and November respectively after it took a 747-300 last month. It earlier reported a 58.7 pct increase in 1986 net profit to 1.23 billion H.K. Dlrs and announced a final dividend of 14 cents a share. But Cathay Pacific recorded sharp increases in net finance charges to 124.9 mln dlrs from 44.4 mln a year. A spokesman for the firm linked the rise to two aircraft deliveries in 1986. However, the company said in a statement good returns from funds placed with investment managers had partly offset higher interest costs resulting from additional lease financing and other borrowing. It added that the airline last year also saw aviation fuel prices fall to an average 4.59 dlrs a gallon from 6.76 dlrs in 1985. Passengers carried by Cathay Pacific totalled 4.2 mln last year, up from 3.85 in 1985, with the passengers kilometre travelled rising to 14.02 billion from 12.56 billion. But passenger load factor was down to 69.1 pct from 71.0 pct. The airline's cargo operations recorded growth of 21 pct in total tonnage over the previous year and a 35.9 pct rise in revenue to 1.79 billion dlrs. Cathay Pacific floated its shares in April, 1986 and is now 50.23 pct owned by Swire Pacific Ltd <SWPC.HK>, 16.43 pct by Hongkong and Shanghai Banking Corp <HKBH.HK> and 12.5 pct by <China International Trust and Investment Corp>.  
Morgan Grenfell 1986 pretax profit 82.19 mln stg vs 68.82 mln.  Morgan Grenfell 1986 pretax profit 82.19 mln stg vs 68.82 mln  
<MORGAN GRENFELL GROUP PLC> 1986 YEAR. Shr basic 39.2p vs 36.0p Shr fully diluted 37.2p vs 34.3p Div 7.0p making 10.5p vs 8.5p Pretax profit 82.19 mln stg vs 68.82 mln Tax 27.25 mln vs 27.42 mln Minority interest 986,000 debit vs 124,000 credit Extraordinary items 411,000 credit vs 219,000 debit  
HENDERSON LAND DEVELOPMENT CO LTD <HNDH.HK>. Six months to Dec 31. Shr 16 H.K. Cents vs 11 Interim div seven cents vs five Net 211.03 mln dlrs vs 138.69 mln Turnover 583.83 mln dlrs vs 441.04 mln Note - Dividend payable May 4, books close April 21 to 27.  
HOLZSTOFF AG <GHOZ.BS> 1986 YEAR. Net profit 25.5 mln Swiss francs vs 22.2 mln Turnover 717 mln vs 739 mln Cash flow 75.4 mln vs 58.1 mln Proposed dividend 70 francs vs same Note - Company plans one for two rights issue of 40,000 participation certificates of nominal 50 francs. Conditions not yet set.  
SONY FORESEES CONTINUED SLUMP IN EARNINGS. Sony Corp <SNE.T> group net income is expected to be down 65 pct for the five months ending March 31 from the same period a year ago at around 10 billion yen, if the yendollar rate remains at the present level, managing director Tsunao Hashimoto told a press conference. Sony will have an irregular five-month business term ending March 31, as its financial year will be changed to run from April 1 to March 31 from the current October 31 year end. Group sales in the same period are estimated at about 550 billion yen, down five pct from a year earlier, he said. The company earlier reported net income of 7.65 billion yen in the three month period ended January 31, down 59.2 pct from a year earlier, on sales of 343.06 billion, down 6.3 pct. The gloomy profits and sales resulted from the yen's recent appreciation against the dollar and a sharp drop in market prices due to severe sales competition at home and abroad. The yen rose 26 pct to an average of 159 yen to the dollar, reducing the company's total sales in the three month period by 40 billion yen, Hashimoto said. Sales of 8-mm video camera/recorders totalled 300,000 units in the three months, unchanged from a year earlier, while Beta-format video tape recorders (vtrs) sales fell to 300,000 from 350,000. Sales of compact disc players rose to 450,000 from 300,000 and those of the Walkman rose to 2.25 mln from 1.30 mln but colour television sales fell to 950,000 from one mln due to lower exports to China. Sales of 8-mm vtrs had already exceeded Beta-format vtrs sales since the beginning of fiscal 1986, Hashimoto said. Overseas sales accounted for 68.2 pct of the total in the three months compared with 71.3 pct a year earlier. Overseas production will account for 35 pct of its total production in 1990 from the present 20 pct. Hashimoto also said parent current profit in the five-month period is estimated at around 17 billion yen, down 33 pct from a year earlier, on sales of 400 billion, down 12 pct. Sony is hoping to retain at least 1985/86 levels of group net profits and sales in the new financial year starting April 1 1987, he added. The company made 41.9 billion yen group net profit in the year ended November 31 1986, down 42.6 pct from a year earlier, on sales of 1,325 billion, down 6.7 pct.  
MATRIX SCIENCE <MTRX> SETS STOCK SPLIT. Matrix Science Corp said its board declared a two-for-one stock split and a six-cent per share (pre stock split) dividend, payable May 7 to stockholders of record April 16. The company said the dividend is in addition to the ten cts per share dividend paid January 2, 1987, making the post stock split annual dividend eight cts per share.  
SEA GALLEY STORES INC <SEAG> 4TH QTR DEC 28 LOSS. Shr loss 69 cts vs loss 1.45 dlrs Net loss 2,015,000 vs loss 4,268,000 Revs 16.6 mln vs 16.9 mln Year Shr loss 1.21 dlrs vs loss 59 cts Net loss 3,514,000 vs loss 1,839,000 Revs 58.8 mln vs 61.4 mln  
RANK ORGANISATION CURRENT TRADING SATISFACTORY. Rank Organisation Plc <RANK.L> said trading in the current year had continued satisfactorily taking into account seasonal fluctuations. Association companies, such as <Rank-Xerox Ltd>, indicated an improved performance, a statement issued at the annual meeting said. It said it planned to spend some 15 mln stg on refurbishing its Odeon cinema chain and the Rank Film Distributors unit was committed to spending 20 mln to secure international distribution rights of films. Investment in new activities in 1987 should continue at a relatively high level to exploit opportunities for growth. Rank said it did not exclude the possibility of making large as well as small acquisitions. In the year to end-October, Rank reported a rise in pretax profits to 164.1 mln stg from 136.0 mln previously. Rank shares firmed in morning trading to be quoted at 712p at 1320 GMT after 697p at last night's close.  
COOPERVISION INC <EYE> 1ST QTR JAN 31 NET. Shr 3.65 dlrs vs 33 cts Net 82.5 mln vs 7,300,000 Sales 94.4 mln vs 85.4 mln Avg shrs 22.6 mln vs 21.7 mln NOTE: Current year net includes pretax gain 175.2 mln dlrs on sale of ophthalmic business and loss 17.9 mln dlrs posttax from repurchase of debt. Prior year net includes 120,000 dlr loss from discontinued operations.  
COOPERVISION <EYE> DELAYS ANNUAL MEETING. CooperVision Inc said it has delayed its annual meeting to June 22 from May 14 to allow its board to review possible recapitalization options before the meeting. CooperVision today reported first quarter net income of 64.6 mln dlrs, after a 175.2 mln dlr pretax gain from the sale of its ophthalmic business to Johnson and Johnson <JNJ> for 260 mln dlrs in cash and a 17.9 mln dlr posttax charge from a debt repurchase.  Sales were 94.4 mln dlrs.  A year earlier it earned 7,300,000 dlrs after a 120,000 dlr loss from discontinued operations, on sales of 85.4 mln dlrs. The company said an aggressive program of investment spending to maintain or increase market shares its its two core businesses will accelerate sales growth this year but hold back increases in operating income in the near future. CooperVision said "Furthermore, until the entire net cash proceeds from the recent sales of several of our businesses are employed to reduce indebtedness, make strategic acquisitions and/or are otherwise employed in relation to a possible recapitalization of the company, recovery of net income will be held back by the loss, particularly of the tax income, of the (ophthalmic) pharmaceutical business sold to Johnson and Johnson."  
GREAT ATLANTIC AND PACIFIC TEA CO 4TH QTR OPER SHR 55 CTS VS 36 CTS.  GREAT ATLANTIC AND PACIFIC TEA CO 4TH QTR OPER SHR 55 CTS VS 36 CTS  
GREAT ATLANTIC AND PACIFIC TEA CO <GAP> 4TH QTR. Oper shr 55 cts vs 36 cts Oper net 20.7 mln vs 13.6 mln Sales 2.34 billion vs 1.58 billion Avg shrs 38.1 mln vs 37.7 mln Year Oper shr 1.82 dlrs vs 1.48 dlrs Oper net 69.0 mln vs 56.1 mln Sales 7.83 billion vs 6.62 billion Avg shrs 38.0 mln vs 37.8 mln NOTES: Results for 13 and 53 week periods ended Feb 28, 1987, and 12 and 52 week periods ended Feb 22, 1986 Operating net excludes credits from tax loss carryforwards of none vs 5.3 mln dlrs, or 14 cts a share in quarter and 26.0 mln dlrs, or 68 cts a share, vs 32.2 mln dlrs, or 85 cts a share, in year Company had 1,200 stores inoperation at year end vs 1,045 a year earlier  
TOYS "R" US INC <TOY> 4TH QTR FEB ONE NET. Shr 89 cts vs 68 cts Net 116.0 mln vs 88.1 mln Revs 1.17 billion vs 924.0 mln 12 mths Shr 1.17 dlrs vs 93 cts Net 152.2 mln vs 119.8 mln Revs 2.44 billion vs 1.97 billion NOTE: net 1986 were restated to reflect three-for-two stock split on June 27, 1986.  
MEASUREX CORP <MX> 1ST QTR NET. Shr 34 cts vs 27 cts Qtrly div six cts vs 4.5 cts prior Net 6,448,000 vs 4,969,000 Revs 51.1 mln vs 44.7 mln Avg shrs 19.1 mln vs 18.7 mln NOTE: pay for dividend was March 11 to shareholders of record on Feb 20.  
PALMER LEWIS CO INC <LWIS> 4TH QTR NET. Qtr ends Jan 31 Shr three cts vs one cent Qtrly div seven cts vs seven cts prior Net 106,185 vs 28,871 Revs 46.9 mln vs 30.3 mln 12 mths Shr 33 cts vs 23 cts Net 1,306,595 vs 878,484 Revs 187.2 mln vs 140.8 mln NOTE: effective July One, 1986, the company acquired the outstanding stock of Western American Forest Product Inc for cash and convertible debentures. the acqustion is accounted for as a purchase and consolidated statements include Western's results of operations from July One, 1986. payout for dividend is may six to stockholders of record on April 13.  
CAPITAL CITIES/ABC <CCB> SETS PAYOUT. Qtrly div five cts vs five cts Pay April 20 Record March 30  
PUBLICKER INDUSTRIES INC <PUL> 4TH QTR LOSS. Shr loss five cts vs loss 15 cts Net loss 619,000 vs loss 1,730,000 Sales 3,138,000 vs 5,667,000 Avg shrs 12.5 mln vs 11.5 mln Year Shr loss four cts vs loss 40 cts Net loss 343,000 vs loss 3,963,000 Sales 13.4 mln vs 35.3 mln Avg shrs 12.5 mln vs 10.3 mln  
FEDERAL EXPRESS CORP 3RD QTR OPER SHR 69 CTS VS 83 CTS.  FEDERAL EXPRESS CORP 3RD QTR OPER SHR 69 CTS VS 83 CTS  
BELL ATLANTIC CORP <BEL> INCREASES PAYOUT. Qtrly div 96 cts vs 90 cts Pay May One, 1987 Record March 31, 1987  
RHODES <RHDS> SEES SHARPLY LOWER 4TH QTR NET. Rhodes Inc said it now estimates fourth quarter, ended February 28, earnings were eight cts a share, down from the 25 cts earned in the final quarter of fiscal 1986. The company said the major causes for the reduction were an unfavorable LIFO adjustment and softer than projected sales in the quarter, due primarily to unfavorable weather. Despite the 4th qtr results, Rhodes said, "net income for the year just ended should come close to the record level of the previous year" -- 1.61 dlrs dlrs a share.  
A AND P <GAP> SETS HIGHER CAPITAL SPENDING. The Great Atlantic and Pacific Tea Co said its three-year 345 mln dlr capital program will be be substantially increased to accommodate growth and expansion plans for Waldbaum Inc and Shopwell Inc over the next two years. A and P said the acquisition of Shopwell in August 1986 and Waldbaum in December "helped us achieve better than expected results in the fourth quarter" ended February 28. Its net income from continuing operations jumped 52.6 pct to 20.7 mln dlrs, or 55 cts a share, in the latest quarter as sales increased 48.3 pct to 1.58 billion dlrs. A and P gave no details on the expanded capital program, but it did say it completed the first year of the program during 1986. A and P is 52.4 pct owned by <Tengelmann Warenhandelsgesellschaft> of West Germany.  
FEDERAL EXPRESS CORP <FDX> 3RD QTR FEB 28 NET. Oper shr 69 cts vs 83 cts Oper net 35.9 mln vs 42.4 mln Revs 798.9 mln vs 659.2 mln Avg shrs 52.0 mln vs 50.9 mln Nine mths Oper shr 2.38 dlrs vs 2.75 dlrs Oper net 123.3 mln vs 135.6 mln Revs 2.31 billion vs 1.86 billion Avg shrs 51.8 mln vs 49.3 mln NOTE: Net excludes losses from discontinued operations of nil vs 16.1 mln dlrs in quarter and 227.5 mln dlrs vs 42.7 mln dlrs in nine mths. Quarter net includes gains from sale of aircraft of two mln dlrs vs 6,200,000 dlrs.  
MORGAN GRENFELL SAYS 1986 PROFITS HIT BY GUINNESS. <Morgan Grenfell Group Plc> said its 1986 pre-tax profits were lower than forecast because of depreciation in the value of its Guinness Plc <GUIN.L> shares and because of securities trading losses in the U.S. Morgan chairman Lord Catto said the losses on the group's seven mln Guinness shares in addition to a 3.5 mln dlr loss on its risk arbitrage operation in New York depressed profits some eight mln stg to 82.2 mln. He also told a news conference Morgan had received informal approaches about a takeover of the group but was not interested. No formal offers had been made, but Catto would not elaborate. Morgan Grenfell acted as merchant banker to Guinness during the brewing company's successful bid for Distillers Co Plc <DIST.L> in the first half of last year. The U.K. Government launched an investigation into the affairs of Guinness last December. Public concern has focused on the way Guinness may have breached U.K. Company law and the Takeover Code by prompting others to support its share price during the bid. Morgan chief executive Christopher Reeves, head of corporate finance Graham Walsh and senior corporate finance director Roger Seelig all resigned in January over the Guinness affair. Another senior Morgan Grenfell executive, Geoffrey Collier, resigned late last year on allegations of trading on insider information. He currently faces criminal charges. Lord Catto said the second half of 1986 had been "one of the most traumatic in our history," but that clients and staff had been supportive. "I certainly look on the future in a positive way. We have the worst behind us and have swept nothing under the carpet." Profits for the year, up 19.4 pct from 1985 pre-tax profits of 68.8 mln stg, were mainly due to a high contribution from corporate finance activities and progress in asset management. Finance Director David Ewart told the news conference the performance of the group so far in 1987 was "within reasonable touch of the budget." Lord Catto also said the group was actively seeking a new chief executive to replace Sir Peter Carey, who is acting as interim director after Reeves' resignation, and hopes to have a new chief executive within a few months. He also said Reeves and Walsh had been paid a total of 562,000 stg in compensation following their resignations, but declined to say how much each man got. Negotiations were going on to determine an amount of compensation for Seelig, he said. Morgan Grenfell shares stood at a late 366p, 9p down on yesterday's 375p. REUTER...  
UNITED ASSET MANAGEMENT CORP <UAM> UPS PAYOUT. Qtly div four cts vs three cts prior Pay April 15 Record March 31  
KINDER-CARE INC <KNDR> FIRST QTR NET. Qtr ends dec 31 Shr one cent vs 15 cts Net 466,000 vs 6,866,000 Revs 123.1 mln vs 93.5 mln NOTE: the company changed its fiscal year end from Aug 31 to Dec 31. qtr prior ended Jan 17, 1986 and included two more weeks than current qtr. current qtr includes loss 899,000 for accounting change.  
ULTRASYSTEMS INC <ULS> 4TH QTR JAN 31 NET. Shr 26 cts vs 18 ctsd Net 2,102,000 vs 1,415,000 Revs 44.1 mln vs 42.2 mln Year Shr 21 cts vs 91 cts Net 1,678,000 vs 7,105,000 Revs 155.1 mln vs 149.2 mln Avg shrs 7,960,000 vs 7,808,000 NOTE: Latest year net includes writeoff of investment in Dawn Enterprises ethanol refinery of 79 cts shr.  
NFS FINANCIAL <NFSF> SETS INITIAL DIVIDEND. NFS Financial Corp said its board declared an initial dividend of five cts per share, payable April 21 to holders of record March 31.  
VW'S AUDI SAYS PROFIT FELL AROUND 50 PCT IN 1986. Audi AG <NSUG.F>, the 99 pct owned subsidiary of Volkswagen AG <VOWG.F>, said profit in 1986 fell by around half compared with 1985, when it achieved a record 221 mln marks net profit, a rise of 19.5 pct on the previous year. Managing board chairman Wolfgang Habbel told a news conference he expected both profit and turnover to rise this year compared with 1986, but he said it was questionable whether 1987 profit would return to 1985 levels. He gave no figure for 1986 profit. Audi had predicted last year that 1986 profit would likely fall by an unspecified amount from 1985's record levels. Habbel said turnover in 1986 rose to 9.9 billion marks from 9.6 billion in 1985 and looked certain to rise to over 10 billion this year. Asked whether Audi would pay a dividend to VW to help the parent company overcome its currency losses, Habbel said Audi would ensure VW got a share of profits. Audi's entire 1985 net profit was paid into its own free reserves to help finance investment. In the previous 10 years VW had received 80 pct of Audi's earnings as a dividend. Habbel blamed the profit decline on disruptions to output caused by the introduction of the new Audi 80 model, on currency factors and on negative publicity in the U.S. About alleged "sudden acceleration" of some of its Audi 5000 models. As reported, Audi's sales in the U.S. Dropped nearly 20 pct to 59,800 last year. Habbel said the U.S. Sales decline would probably bottom out in 1987. Audi's worldwide car deliveries fell two pct to 363,000. Of the total, exports fell 10.5 pct to a rounded 210,000, but domestic sales increased to a rounded 154,000 from 137,180 in 1985. Habbel said the new Audi 80 had sold extremely well in the first two months of 1987, helping Audi to increase its overall market share in West Germany to 8.4 pct from 5.2 pct in the same months of 1986. Sales in Europe also rose but U.S. Sales fell further, he said without giving details. Worldwide deliveries in the first two months increased eight pct to 57,000. Audi said in January that 1987 car production would rise to over 400,000 from 384,000 in 1986, when output had fallen compared with 1985's 392,000. Habbel said Audi expected the rise in output to lead to further new hiring of employees. At the end of 1986 Audi's workforce stood at a record 39,800, a rise of 3,400 over 1985.  
SENSORMATIC ELECTRONICS CORP <SNSR> 3RD QTR NET. Feb 28 end Shr profit 11 cts vs loss 37 cts Net profit 3,027,000 vs loss 10.4 mln Revs 22.3 mln vs 19.9 mln Avg shrs 28.6 mln vs 29.0 mln Nine mths Shr profit 34 cts vs loss 22 cts Net profit 9,560,000 vs loss 6,072,000 Revs 71.9 mln vs 64.7 mln Avg shrs 28.5 mln vs 27.9 mln NOTE: Prior year net both periods after 15.2 mln dlr writeoff.  
WINNEBAGO INDUSTRIES INC <WGO> 2ND QTR NET. Period ended February 28 Shr 25 cts vs 25 cts Net 6,292,000 vs 6,340,000 Sales 97.0 mln vs 87.0 mln Six mths Shr 36 cts vs 28 cts Net 9,122,000 vs 7,053,000 Sales 193.2 mln vs 168.6 mln NOTE: 1986 period ended March One  
PENWEST LTD <PENW> 2ND QTR ENDS FEB 28 NET. Shr 85 cts vs 24 cts Net 2,381,000 vs 754,000 Revs 35.3 mln vs 32.6 mln Avg shrs 2,777,620 vs 3,161,603 Six mths Shr 1.35 dlrs vs 44 cts Net 3,756,000 vs 1,388,000 Revs 65.8 mln vs 64.3 mln Avg shrs 2,777,620 vs 3,161,603  
SIERRA SPRING WATER CO <WTR> 4TH QTR LOSS. Shr loss 10 cts vs profit six cts Net loss 986,000 vs profit 576,000 Rev 9.6 mln vs 9.1 mln Year Shr loss seven cts vs profit 27 cts Net loss 714,000 vs profit 2,299,000 Rev 42.8 mln vs 34.6 mln  
AMERICAN PHYSICIANS SERVICE <AMPH> 4TH NET. Shr profit five cts vs profit two cts Net profit 268,000 vs profit 134,000 Revs 6,951,000 vs 5,938,000 12 mths Shr profit 14 cts vs loss 11 cts Net profit 801,000 vs loss 623,000 Revs 24.6 mln vs 24.3 mln NOTE: full name of company is american physicians service group inc.  
PHILIP CROSBY <PCRO> SEES LOWER 4TH QTR RESULTS. Philip Crosby Associates Inc said it expects its audited results for 1986's fourth quarter to be lower than its previously estimated 10 to 15 cts per share. Philip Crosby Jr, executive vice president, said normal accounting adjustments, as well as a review of the company's international operations due to a previously reported alleged embezzlement, resulted in the lower results. Philip Crosby reported fourth quarter 1985 results of 1.3 mln dlrs, or 37 cts a share prior to an August 15 two-for-one stock split. Crosby said, however, he expects the company to report higher first quarter 1987 revenues than the 1986 first quarter revenues of 11.8 mln dlrs. Crosby said that tuition levels from the management consulting service company's courses this month are at the highest level in the company's history.  
GENZYME CORP <GENZ> 4TH QTR NET. Shr profit three cts vs loss 44 cts Net profit 247,000 vs loss 2,410,000 Revs 3,845,000 vs 3,264,000 Avg shrs 8,743,000 vs 5,507,000 Year Shr profit one ct vs loss 53 cts Net profit 41,300 vs loss 2,840,000 Revs 13.0 vs 9,767,000 Avg shrs 7,497,000 vs 5,384,000 NOTE: 1985 4th qtr and year net includes two mln dlr loss for litigation settlement and 589,000 dlrs for write-off of goodwill.  
INFORMATION SOLUTIONS INC <ISOL> 1ST QTR JAN 31. Shr two cts vs six cts Net 43,295 vs 147,724 Revs 3,787,507 vs 4,000,019  
FAIRCHILD INDUSTRIES <FEN> SETS REGULAR PAYOUT. Qtrly div five cts vs five cts Pay Apirl 10 Record March 30  
ALFA LAVAL AB <ALFS.ST> 1986 YEAR. Group profit after financial income and expenses 731 mln Crowns vs 651 mln Sales 10.15 billion crowns vs 10.05 billion Profit per share after full taxes - 31.80 crowns vs 30 Crowns Proposed dividend - 11 crowns vs 10 crowns.  
SPECTRUM CONTROL INC <SPEC> SETS QUARTERLY. Qtly div 1-3/4 cts vs 1-3/4 cts prior Pay April 15 Record April One  
GENOVESE DRUG STORES INC <SPEC> SETS QUARTERLY. Qtly div five cts vs five cts prior Pay April 20 Record April 13  
ANIMED INC <VETS> 1ST QTR JAN 31 LOSS. Shr loss six cts vs profit three cts Net loss 368,188 vs profit 149,334 Revs 3,9i3,523 vs 4,129,240  
ANIMED <VETS> EXPECTS TO TURN PROFITABLE. ANIMED Inc said it expects to return to profitability during the current year. Today it reported a loss for the first quarter ended in January of 368,188 dlrs compared with a 149,334 dlr profit a year before.  
CROWN AUTO INC <CRNI> 4TH QTR DEC 27 LOSS. Shr loss 14 cts vs loss 31 cts Net loss 144,522 vs loss 334,890 Revs 10,019,828 vs 9,021,835 Year Shr loss 16 cts vs profit 10 cts Net loss 170,177 vs profit 105,090 Revs 36.8 mln vs 36.1 mln Avg shrs 1,068,850 vs 1,074,624 NOTE: 1985 period ended December 28 1985 earnings include loss in each period from discontinued operations of 184,777 dlrs  
UNION VALLEY CORP <UVC> 4TH QTR NET. Shr 20 cts vs 34 cts Net 797,000 vs 1,137,000 Rev 22.2 mln vs 18.2 mln Avg shares 3,966,667 vs 3,366,667 Year Shr 73 cts vs one dlr Net 2,625,000 vs 3,371,000 Rev 69.6 mln vs 62.9 mln Avg shares 3,583,653 vs 3,366,667 NOTE: 1986 includes extraordinary gain of 281,000 dlrs, or eight cts a share.  
GENERAL DEVICES INC <GDIC> YEAR NET. Shr profit 48 cts vs loss 21 cts Net profit 1,308,503 vs loss 561,384 Revs 56.0 mln vs 66.1 mln NOTE: 1986 net includes pretax gain 2,429,563 dlrs from sale of Worldwide Computer Services Inc subsidiary and 352,000 dlr tax credit.  
DEUTSCHE BABCOCK TO INCREASE DIVIDEND IN 1986/87. Deutsche Babcock AG <DBCG.F> will increase its dividend on results in the year ending September 30, 1987, chief executive Helmut Wiehn said. Wiehn told a news conference Deutsche Babcock would double the absolute amount it distributes to shareholders. This overall increase would also be due partly to an increase of nominal share capital by 100 mln marks to 350 mln marks. A higher dividend had been anticipated because Deutsche Babcock has said in the past that it will only raise capital when it can make a lasting improvement in the dividend.  
BRAD RAGAN INC <BRD> SETS QUARTERLY. Qtly div three cts vs three cts prior Pay May 4 Record April 3  
<BASTIAN INDUSTRIES INC> 2ND QTR JAN 31 LOSS. Net loss 1,321,000 vs loss 1,397,000 Sales 31.1 mln vs 29.2 mln 1st half Net loss 94,000 vs loss 1,745,000 Sales 63.0 mln vs 61.9 mln NOTE: Company recently went private. Latest quarter net includes 24,000 dlr tax credit. Current half net includes gain 2,041,000 dlrs pretax from termination of pension plan.  
COMMERCIAL NATIONAL CORP <CNCL> CUTS QUARTERLY. Commercial National Corp said it cut its quarterly dividend to 15 cts per share from 25 cts due to current expectations for 1987 earnings. The company said the dividend is payable April 10 to holders of record March 31.  
TIMBERLAND INDUSTRIES INC <TIMB> 4TH QTR NET. Shr 14 cts vs 22 cts Net 188,000 vs 307,000 Sales 14.6 mln vs 12.1 mln Year Shr 44 cts vs 63 cts Net 600,000 vs 852,000 Sales 51.0 mln vs 45.7 mln  
<MUNICIPAL FINANCIAL CORP> 1ST QTR JAN 31 NET. Shr 34 cts vs 22 cts Net 1,280,185 vs 875,692 Revs 19.0 mln vs 15.8 mln Assets 585.6 mln vs 469.1 mln  
KINDER-CARE <KNDR> SEES HIGHER EARNINGS IN 1987. Kinder-Care Inc projected its 1987 earnings to be 44 mln dlrs. Richard Grassgreen, president of the company, said earnings per share are expected to be between 97 cts and one dlr in comparison to 75 cts earnings per share for the fiscal year ended August 29, 1986, and 80 cts for the trailing 12 months ended November 1986. Greengrass said this represents an earnings per share increase of approximately 25 to 30 pct. The company said it changed its fiscal year end from August 31 to December 31.  
ROBBINS AND MYERS INC <ROBN> 2ND QTR FEB 28 NET. Shr profit 11 cts vs loss 1.45 dlrs Net profit 267,000 vs loss 3,458,000 Sales 23.6 mln vs 23.0 mln First half Shr loss 27 cts vs loss 1.91 dlrs Net loss 633,000 vs loss 4,548,000 Sales 46.2 mln vs 49.7 mln Avg shrs 2,382,000 vs 2,381,000 Backlog 26.1 mln vs 36.0 mln  
CONT'L ILLINOIS SAYS BRAZIL MORATORIUM COULD CUT 1ST QTR NET BY 10 MLN DLRS.  CONT'L ILLINOIS SAYS BRAZIL MORATORIUM COULD CUT 1ST QTR NET BY 10 MLN DLRS  
CONT'L ILLINOIS<CIL> SAYS MORATORIUM MAY CUT NET. Continental Illinois Corp said if the Brazilian debt moratorium remains in effect, it may place its medium and long term loans to Brazil on a cash basis. This would increase non-performing loans by about 380 mln dlrs and reduce income before taxes and net income by about 10 mln dlrs in the 1987 first quarter and 35 mln dlrs for the full year, company officials told a press briefing. Loans to Brazil at 1986 year end totaled 474 mln dlrs, according to the annual report released at the briefing. In February 1987, the Brazilian government, citing a declining level of foreign currency reserves, declared a moratorium on the payment of interest on the country's medium and long term debt obligations. Continental said it may take similar action on its loans to Ecuador, which total 25 mln dlrs. This would reduce 1987 pre-tax and after-tax net by 800,000 dlrs in the first quarter, and by two mln dlrs for the full year, the bank-holding company's officers said.  
CYPRESS SAVINGS ASSOCIATION <CYPSA> 4TH QTR LOSS. Shr loss 3.26 dlrs vs loss 2.75 dlrs Net loss 3,479,744 vs 2,939,619 Year Shr loss 5.58 dlrs vs loss 2.20 dlrs Net loss 5,964,454 vs loss 2,341,818 NOTE: Net includes tax credits of 108,798 dlrs vs 1,445,275 dlrs in quarter and 838,690 dlrs vs 1,124,805 dlrs in year.  
ZENITH LABORATORIES INC <ZEN> 4TH QTR LOSS. Shr loss 24 cts vs profit 23 cts Net loss 5,106,000 vs profit 5,120,000 Sales 11.4 mln vs 20.4 mln Year Shr loss 19 cts vs profit 73 cts Net loss 4,062,000 vs profit 15.7 mln Sales 50.4 mln vs 80.5 mln Avg shrs 21.7 mln vs 21.6 mln NOTE: 1986 net includes tax credits of 2,742,000 dlrs in quarter and 5,903,000 dlrs in year.  
CERADYNE INC <CRDN> 4TH QTR LOSS. Shr loss 22 cts vs profit 10 cts Net loss 1,056,000 vs profit 427,000 Sales 5,440,000 vs 4,982,000 Avg shrs 5,229,542 vs 4,435,691 Year Shr profit one ct vs profit 26 cts Net profit 29,000 vs profit 993,000 Sales 19.1 mln vs 16.8 mln Avg shrs 4,947,632 vs 3,780,543  
VISTA CHEMICAL <VC> SEES YEAR NET HIGHER. Vista Chemical co said it expects earnings for the year ending September 30 to be up substantially, but extensive planned downtime at two of its plants is expected to affect third quarter results. It said it is looking at a number of financial options for increasing shareholder value but did not elaborate. The company earned 30.2 mln dlrs or 1.66 dlrs per share before an extraordinary item in fiscal 1986. Vista said sales for the year are expected to be "comparable" to fiscal 1986's 550.1 mln dlrs.  
FIRST CONNECTICUT <FCO> SETS QUARTERLY PAYOUT. Qtly div 25 cts vs 25 cts prior Pay April 24 Record April Three NOTE: First Connecticut Small Business Investment Co.  
STONE AND WEBSTER INC <SW> SETS QUARTERLY. Qtly div 40 cts vs 40 cts prior Pay May 15 Record April One  
CREDO PETROLEUM CORP <CRED> 1ST QTR JAN 31 NET. Shr profit one ct vs loss 27 cts Net profit 22,000 vs loss 763,000 Revs 161,000 vs 316,000 NOTE: Prior year net includes 1,209,000 dlr writedown of oil properites and 314,000 dlr tax credit.  
ATT <T> SETS PAYOUT FOR REGULAR DIVIDEND. Qtrly div 30 cts vs 30 cts prior Pay May One Record March 31  
HARTFORD STEAM <HBOL> SETS SPLIT, DIVIDEND HIKE. Hartford Steam Boiler Inspection and Insurance Co said its board declared a two-for-one stock split and raised the quarterly dividend to 25 cts postsplit from 20 cts, both payable April 30 to holders of record April 10.  
CONT'L ILLINOIS <CIL> SEES IMPACT FROM TAX REFORM. The Tax Reform Act of 1986 will have a substantial impact on Continental Illinois Corp, the company's annual report says. One provision repeals the reserve method of providing for bad debts for banks with over 500 mln dlrs in assets and requires that tax loan loss reserves taken in the past, be restored to current earnings status, it said. As a result, those amounts will be subject to federal taxes, it said. No amounts were disclosed. Continental said it decided to deal with this change "in its entirety" in 1987. Tax reform will also change foreign tax credit limitation rules, and although the impact will not be material in the short term, the Act will require, for the first time, that income from certain foreign subsidiaries be taxable, the report said. The new legislation also reduces existing tax credits by 17.5 pct in 1987 and 35 pct in 1988 and later years, it said. Continental's investment tax credits carryforwards of 12.8 mln dlrs at 1986 year end will be reduced to 10.6 mln dlrs in 1987 and, if not used in 1987, to 8.3 mln dlrs in 1988, it said. Another provision of the Act could result in limiting the use of tax credits if a change in ownership of Continental takes place, the report said. This could happen if the Federal Deposit Insurance Corp sells enough shares of Continental's common stock over the next two years to cause a change in ownership, it noted. In December, the FDIC sold about one-third of its junior convertible preference stock in Continental to the public in the form of common stock.  
OESTERREICHISCHE LAENDERBANK AG [OLBV.VI] 1986. Parent bank net profit 181.5 mln schillings vs 135.1 mln Parent bank balance sheet total 197.7 billion vs 182.2 billion Parent bank cash flow 877.4 mln vs 715.5 mln Dividend 12 pct vs 10 pct on nominal share capital of 1.5 billion vs 1.35 billion. Cons banking gp balance sheet total 239.7 billion vs 227.3 billion.  
NL INDUSTRIES INC 4TH QTR SHR LOSS 28 CTS VS PROFIT SEVEN CTS.  NL INDUSTRIES INC 4TH QTR SHR LOSS 28 CTS VS PROFIT SEVEN CTS  
FHLMC <FREPR> 4TH QTR NET. net 65 mln vs 57 mln year shr preferred 14.87 dlrs vs 12.51 dlrs shr common 236.77 dlrs vs 197.40 dlrs net 247 mln vs 208 mln NOTE: Federal Home Loan Mortgage Corp. FHLMC had 14,998,210 preferred shares outstanding in 1986 vs 14,998,379 in 1985, owned by about 3,000 member institutions of the 12 Federal Home Loan Banks. FHLMC also has 100,000 shares of common, owned by the Home Loan Banks.  
HRE PROPERTIES <HRE> CUTS QUARTERLY. HRE Properties said its board cut the quarterly dividend to 45 cts per share from 57 cts, payable April 20 to holders of record March 31. HRE said the board reduced the dividend due to the continuing impact of overbuilding in its office building markets and its inability to replace the income from high yielding investments that have matured. HRE said in the first quarter ended January 31 it earned 38 cts per share, down from 47 cts a year before.  
HORN AND HARDART CO <HOR> 4TH QTR NET. Shr 1.27 dlrs vs two cts Net 18.8 mln vs 357,000 Revs 126.0 mln vs 98.5 mln Avg shrs 14.7 mln vs 12.0 mln Year Shr loss 2.17 dlrs vs loss 65 cts Net loss 28.4 mln vs loss 7,225,000 Revs 405.0 mln vs 356.2 mln Avg shrs 13.1 mln vs 12.2 mln NOTE: 1986 net both periods includes 15.0 mln dlr gain from sale of real estate. 1986 year net includes charge 34.0 mln dlrs from restructuring of Bojangles' restaurant unit and charge 4,090,000 dlrs from exchange of notes for common stock. 1985 year net includes charge 6,900,000 dlrs related to foodservice unit and gain 2,400,000 dlrs from sale of marketable securities.  
NL INDUSTRIES INC <NL> 4TH QTR DEC 31 LOSS. Shr loss 28 cts vs profit seven cts Net loss 10.7 mln vs profit 5,188,000 Sales 119.3 mln vs 216.1 mln Year Shr loss 5.80 dlrs vs profit 30 cts Net loss 324.2 mln vs profit 21.5 mln Sales 549.3 mln vs 859.1 mln NOTE: Share after preferred dividends. NOTE: In July 1986, company set a dividend on Series C preferred, effecting a spin-off of its chemical operations. They unit has been accounted for as a discontinued operation. Fourth quarter and full year 1986 reflect non-recurring charges from change in control at company. Fourth quarter 1986 also reflects writeoff of 20.7 mln dlrs of goodwill. Full year 1986 includes a charge of 224.6 mln dlrs taken in the second quarter for asset revaluation and restructuring costs. In fourth quarter 1986, reversion of pension plan surplus assets completed. Fourth quarter and full year 1986 includes net income of 81.5 mln dlrs or 1.34 dlrs a share. Company also gained 2.4 mln dlrs or four cts a share in fourth quarter 1986, and 15.9 mln dlrs or 26 cts a share in full year 1986, from adoption of accounting rule SFAS 87. In fourth quarter 1986, company also adjusted carrying value of non-chemicals discontinued operations assets leading to charge of 15.6 mln dlrs.  
(CORRECTED) - UNIVERSITY PATENTS INC<UPT> 2ND QTR. Qtr ends Jan 31 Oper shr loss 24 cts vs loss 19 cts Oper loss 1,096,332 vs loss 794,711 Revs 803,085 vs 442,420 Six mths Oper shr loss 53 cts vs loss 43 cts Oper loss 2,375,844 vs loss 1,741,437 Revs 1,471,257 vs 768,683 NOTE: Prior year excludes losses from discontinued operations of 13 cts per share in the quarter and 17 cts per share in the year. (Corrects March 17 item to show losses instead of profits. Also corrects quarter loss from discontinued operations.)  
CRAFTMATIC/CONTOUR <CRCC> SEES HIGHER PROFITS. Craftmatic/Contour Industries Inc said it would report substantial profits for the first quarter of fiscal 1987 ending March 31. The company recorded net income of 732,000 dlrs, or 22 cts per share, on revenues of 10.2 mln dlrs.  
WESTERN SAVINGS AND LOAN <WSL> 4TH QTR LOSS. Shr loss 48 cts vs profit 77 cts Net loss 3,923,000 vs profit 11,551,000 Year Shr profit 1.80 dlrs vs profit 2.32 dlrs Net profit 30,171,000 vs profit 36,667,000 Loans 3.38 billion vs 3.17 billion Deposits 3.81 billion vs 3.28 billion Assets 5.55 billion vs 4.78 billion Note: Full name Western Savings and Loan Association.  
MAY DEPARTMENT STORES CO RAISES DIVIDEND TO 28-1/2 CTS FROM 26 CTS A SHARE.  MAY DEPARTMENT STORES CO RAISES DIVIDEND TO 28-1/2 CTS FROM 26 CTS A SHARE  
HUNT MANUFACTURING CO <HUN> 1ST QTR NET. Ended March 1 Shr 34 cts vs 27 cts Net 2,405,000 vs 1,908,000 Revs 33.5 mln vs 32.6 mln Avg shrs 7,114,000 vs 7,075,000  
MAY DEPARTMENT STORES CO 4TH QTR SHR 1.38 DLRS VS 1.24 DLRS.  MAY DEPARTMENT STORES CO 4TH QTR SHR 1.38 DLRS VS 1.24 DLRS  
FIRST AMERICAN <FIAMA> SEES GAIN FROM SALE. First American Bank and Trust Co said its 88 pct owned Associated Mortgage Investors <AMIMS> subsidiary has sold its New England operations for about 2,100,000 dlrs in cash and 1,300,000 dlrs in stock, resulting in a first quarter gain for First American of about 1,200,000 dlrs after tax. The company said the sale will complete Associated's withdrawal from the general contracting business.  
GOLDEN ENTERPRISES INC <GLDC> 3RD QTR FEB 28 NET. Shr 15 cts vs nine cts Net 2,002,261 vs 1,168,638 Revs 29.2 mln vs 29.3 mln Nine mths Shr 49 cts vs 36 cts Net 6,404,536 vs 4,623,295 Revs 92.2 mln vs 88.2 mln  
MORRISON KNUDSEN <MRN> SEES YEAR NET FALLING. Morrison Knudsen Corp said its earnings for 1987 are likely to be lower than those for 1986 due to lower than expected growth in engineering and construction and a previously-predicted decline in earnings of its National Steel and Shipbuilding unit. The company earned 39.4 mln dlrs in 1986, including pretax gains of 11.5 mln dlrs from pension income and 7,400,000 dlrs from the settlement of vested pension obligations, down from 41.5 mln dlrs in 1985. It said "Lower than expected levels of new work booked in the last quarter of 1986 and the first two-plus months of this year have delayed the expected growth in the engineering and construction area."  The company said it will remain profitable in 1987 and results should strengthen as the year progresses. It attributed the decline in new work to more stringent bidding standards and a competitive market.  
MAY DEPARTMENT STORES CO <MA> RAISES DIVIDEND. Qtly div 28-1/2 cts vs 26 cts previously Pay June 15 Record June One  
DCNY CORP <DCY> HIKES QTLY DIVIDEND. Discount Corp of New York said its board of directors increased its quarterly cash dividend to 20 cts a share from 15 cts a share. DCNY said the dividend is payable April 15, 1987 to shareholders of record April 1 , 1987. Since the last two-for-one stock split in May 1985, the corpoartion has customarily declared 15-cnt-per-share dividends for the first three quarters and a final fourth quarter dividend based on its total earnings for the year. As previously announced, DCNY said its board has also recommended a two-for-one common stock split to shareholders. If the split is approved at the May 13 annual meeting, the quarterly dividend rate will be adjusted to 10 cts a share, DCNY said.  
ST. JOSEPH LIGHT <SAJ> SETS SPLIT, HIKES PAYOUT. St. Joseph Light and Power Corp said its board declared a three-for-two stock split and raised the quarterly dividend on presplit shares to 49 cts per share from 47 cts. The company said the dividend is payable May 18 to holders of record May 4 and the split is subject to approval by shareholders at the May 20 annual meeting.  
INERTIA DYNAMICS CORP <TRIM> 2ND QTR FEB 28 NET. Oper shr 35 cts vs 29 cts Oper net 1,185,267 vs 1,001,315 Sales 16.8 mln vs 12.4 mln Six mths Oper shr 42 cts vs 32 cts Oper net 1,420,815 vs 1,105,555 Note: oper data does not include year ago qtr and six mths loss from discontinued operations of 87,449 dlrs, or two cts per shr.  
ATI MEDICAL INC <ATIM> 2ND QTR JAN 31 NET. Shr two cts vs eight cts Net 118,933 vs 296,272 Revs 2,742,731 vs 1,840,129 Six mths Shr two cts vs 12 cts Net 92,372 vs 444,975 Revs 4,977,105 vs 3,296,110  
SAVANNAH ELECTRIC AND POWER CO <SAV> UPS DIVIDEND. Qtly div 25 cts vs 22 cts prior Payable April 15 Record April 1  
MAY DEPARTMENT STORES <MA> 4TH QTR JAN 31 NET. Shr 1.38 dlrs vs 1.24 dlrs Net 213,000,000 vs 195,000,000 Revs 3.37 billion vs 3.12 billion Avg shrs 153,000,000 vs 156,000,000 Year Shr 2.44 dlrs vs 2.20 dlrs Net 381,000,000 vs 347,000,000 Revs 10.38 billion vs 9.54 billion Avg shrs 154,800,000 vs 156,000,000 NOTE: 1985 period ended Feb 1, 1986 Share data restated for common stock split of July 21, 1986 1986 and 1985 earnings reflect a charge of one ct a share resulting from use of the LFIO method of inventory valuation 4th Qtr 1986 earnings include pretax capital gain of 71.2 mln dlrs, or 30 cts a share from sale of Joseph Horne Co Division in Pittsburgh NOTE: 4th Qtr 1986 earnings include a 62 mln dlr, or 20 cts a share, pretax charge for costs associated with combining May D and F and the Denver operating divisions 4th Qtr 1986 earnings include a pretax charge of 26 mln dlrs, or nine cts a share, for costs associated with several debt repurchase transactions including retirement of 10 mln dlrs of 11-7/8 pct debentures  
ELDORADO BANCORP <ELDB> SETS 10 PCT DIVIDEND. Eldorado Bancorp said its board declared a 10 pct stock dividend, Payable April 17 to shareholders of record April three.  
ADMAC INC <JPAC> 3RD QT JAN 31 LOSS. Shr loss 1.51 dlrs vs profit eight cts Net loss 7,377,000 vs profit 384,000 Sales 1,593,000 vs 4,366,000 Nine Mths Shr loss 2.24 dlrs vs profit 16 cts Net loss 11,083,000 vs profit 628,000 Sales 6,517,000 vs 12.6 mln Avg shrs 4,941,000 vs 3,926,000  
PACO PHARMACEUTICAL <PPS> 2ND QTR FEB 14 NET. Shr 19 cts vs 17 cts Net 767,000 vs 676,000 Revs 9,476,000 vs 9,091,000 Six mths Shr 47 cts vs 44 cts Net 1,897,000 vs 1,719,000 Revs 19.5 mln vs 19 mln NOTE: Full name Paco Pharmaceutical Services Inc.  
PUBLICKER INDUSTRIES INC <PUL> 4TH QTR LOSS. Shr loss five cts vs loss 15 cts Net loss 619,000 vs loss 1,730,000 Sales 3,138,000 vs 5,667,000 Avg shrs 12.5 mln vs 11.5 mln Year Shr loss four cts vs loss 40 cts Net loss 343,000 vs loss 3,963,000 Sales 13.4 mln vs 35.3 mln Avg shrs 12.5 mln vs 10.3 mln NOTE: 1986 year net includes gain 1,678,000 dlrs from settlement of litigation with Belcher Oil Co, 375,000 dlr provision connected with resignation of former president, legal settlements and costs of 1,074,000 dlrs and 552,000 dlrs in expenses from closing of contract packaging division.  
BIONOMIC SCIENCES INTERNATIONAL INC <BSII> LOSS. 2nd qtr Jan 31 end Shr loss three cts vs loss nine cts Net loss 112,400 vs loss 275,400 Sales 318,100 vs 23,600 Avg shrs 4,294,300 vs 3,028,326 1st half Shr profit four cts vs loss 14 cts Net profit 165,600 vs loss 409,100 Sales 546,600 vs 44,400 Avg shrs 4,189,700 vs 3,028,326 NOTE: Current year net includes gains on sale of assets of 25,000 dlrs in quarter and 396,000 dlrs in half. Net includes extraordinary loss 10,000 dlrs vs nil in quarter and loss 10,000 dlrs vs profit 106,300 dlrs in half.  
PIEDMONT AVIATION INC <PIE> SETS QUARTERLY. Qtly div eight cts vs eight cts prior Pay May 18 Record May One  
BIONOMIC SCIENCES <BSII> SEES PROFITABILITY. Bionomic Sciences International Inc said it expects to start operating profitably by the fourth quarter. The company today reported a profit of 165,600 dlrs for the first half ended January 31 -- after a 396,000 dlr gain on the sale of assets and a 10,000 dlr extraordinary loss.  A year before it lost 409,100 dlrs after a 106,300 dlr extraordinary gain.  
CERADYNE INC <CRDN> 4TH QTR LOSS. Shr loss 22 cts vs profit 10 cts Net loss 1,056,000 vs profit 427,000 Sales 5,440,000 vs 4,982,000 Avg shrs 5,229,542 vs 4,435,691 Year Shr profit one ct vs profit 26 cts Net profit 29,000 vs profit 993,000 Sasles 19.1 mln vs 16.6 mln Avg shrs 4,947,632 vs 3,780,543  
FINANCIAL BENEFIT GROUP INC <FBGIA> YEAR LOSS. Shr loss 11 cts vs loss 48 cts Net loss 254,000 vs loss 784,000 Revs 94.1 mln vs 47.3 mln Avg shrs 2,317,000 vs 1,642,000 NOTE: Share adjusted for stock dividend and reverse split.  
MEGAPHONE INTERNATIONAL INC <INFL> 4TH QTR LOSS. Oper shr loss three cts vs loss three cts Oper net loss 388,000 vs loss 452,000 Revs 1,425,000 vs 1,126,000 Year Oper shr loss 26 cts vs loss 15 cts Oper net loss 3,604,000 vs loss 2,108,000 Res 5,712,000 vs 6,604,000 NOTE: 1986 net both periods excludes 413,000 dlr gain from settlement of old obligations.  
CAROLINA POWER AND LIGHT CO <CPL> QTLY DIV. Qtly div 69 cts vs 69 cts prior Payable May one Record APril 10  
AMERICAN INTERNATIONAL GROUP <AIG> QTLY DIV. Qtly div 6-1/4 cts vs 6-1/4 cts prior Pay June 19 Record June 5  
ROCHESTER GAS AND ELECTRIC CORP <RGS> IN PAYOUT. Qtly div 55 cts vs 55 cts prior Pay April 25 Record March 31  
SERVICE CORP INTERNATIONAL <SRV> SETS QUARTERLY. Qtly div eight cts vs eight cts prior Pay April 30 Record April 16  
VALLEY RESOURCES <VR> SETS SPLIT, RAISES PAYOUT. Valley Resources Inc said its board declared a three-for-two stock split and raised the quarterly dividend to 42 cts per share presplit from 38 cts, both payable April 15, record March 31.  
<ALTEX RESOURCES LTD> YEAR NET. Shr six cts vs eight cts Net 643,000 vs 889,000 Revs 3,934,000 vs 4,373,000  
MAY <MA> REPORTS STRONG 1ST QTR START. May Department Stores Co, reporting record results for the fourth quarter ended January 31, said it is encouraged about the new fiscal year by a strong start in February and March. The company said its merger last year with Associated Dry Goods, which was accounted for as a pooling of interests, is "going very well." May said "We are acting more like one company every day. Our expansion schedule is on track." May said it plans to invest more than 600 mln dlrs this year to open 11 department stores, eight discount stores and more than 240 specialty outlets. The company reported fourth quarter earnings of 213 mln dlrs, or 1.38 dlrs a share, up from 195 mln dlrs, or 1.24 dlrs a share a year earlier. Revenues advanced to 3.37 billion dlrs from 3.12 billion dlrs.  
CRAMER INC <CRMR> 4TH QTR LOSS. Shr loss eight cts vs loss 1.39 dlrs Net loss 94,000 vs loss 1,569,000 Sales 6,951,000 vs 5,518,000 Year Shr profit four cts vs loss 2.95 dlrs Net profit 41,000 vs loss 3,333,000 Sales 25.3 mln vs 22.9 mln  
OHIO ART CO <OAR> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay May Eight Record April 10  
CONT'L ILLINOIS SEES MONTHS OF BRAZIL DEBT TALKS. Continental Illinois Corp's <CIL> Chairman John Swearingen said he sees negotiations to reschedule Brazil's debt payments taking at least three to six months. Brazil declared last month a moratorium on payment of interest on its medium- and long-term debts. The moratorium is expected to persist the entire time that debt scheduling talks are under way. "I believe it will take three to six months, maybe longer, for an arrangement to be worked out to reschedule Brazil's debt," Swearingen told reporters at a press briefing. "I think Brazil will pay its debts in the long run. Just how long the run is is anybody's guess," Swearingen said. Earlier the bank holding company said Brazil's moritorium may force it to increase non-performing loans by 380 mln dlrs and reduce pretax and net income by 10 mln dlrs in the first quarter and 35 mln dlrs for the full year. The bank will decide March 31 whether to characterize these loans as non-performing, William Ogden, chairman of the Continental Illinois National Bank and Trust Co of Chicago, Continental's largest subsidiary, said in response to an inquiry. Ogden said the moratoriums will affect both pretax and net income equally because the banking firm has tax credits to use. Swearingen predicted an increase in operating profits for 1987 because he sees higher income and reduced expenses. Continental will reduce expenses through job cuts and reducing office rental costs. In 1986 it cut about 850 positions. In 1986 it had net profits of 165.2 mln dlrs or 60 cts a share, up from 150.5 mln dlrs or 53 cts a share. The bank transferred 459 mln dlrs of poor-quality loans and other assets to the Federal Deposit Insurance Corp, FDIC, during 1986. It can transfer bad loans under the terms of the 1984 restructuring agreement with the government. The bank will transfer the remaining 460 mln dlrs that it is entitled to transfer to FDIC by September 26, 1987, Swearingen said. It will choose loans based on ultimate loss rather than their immediate effect on non-performing loans. In 1986 the bank's loans to the Midwest's middle market rose 20 pct at a time of overall weak loan demand in the U.S. Concerning banking acquisitions, Swearingen said the bank would like to buy additional suburban Chicago banks. In 1986 it bought three small suburban banks. Swearingen said he is concerned that Continental will be taken over because no bank in the Midwest region is large enough to buy it, and New York money center banks are prohibited by law from buying Illinois banks. He said, however, that the FDIC still has control over who will eventually own the firm because it still holds the equivalent of 148 mln common shares out of a total 215 mln. The FDIC sold 52 mln shares to the public last year and has said it intends to sell the rest as quickly as possible. The agency received the shares as part of its 4.5 billion dlrs 1984 bailout of the bank. Swearingen, who came out of retirement in 1984 to head the struggling banking firm after a career as an oil industry executive, said he will retire when the three-year period he agreed to be Continental chairman ends in August. He would not comment on a successor. The bank will expand its First Options of Chicago options clearning unit into Tokyo, Swearingen said, but said its doubtful lending to Japan will occur because that country doesn't need external sources of cash.  
RELIABLE LIFE INSURANCE CO <RLIFA> UPS DIVIDENDS. Qtly div Class A 27.5 cts vs 26.4 cts prior Qtly div Class B 2.5 cts vs 2.4 cts prior Pay June One Record May One  
NOVAR ELECTRONICS CORP <NOVR> 4TH QTR JAN THREE. Shr loss eight cts vs loss eight cts Net loss 220,724 vs loss 210,120 Revs 4,194,466 vs 4,224,633 Year Shr profit eight cts vs profit four cts Net profit 207,514 vs profit 98,050 Revs 17.8 mln vs 16.1 mln NOTE: Quarter net includes tax credits of 162,600 dlrs vs 236,100 dlrs.  
18-MAR-1987. 18-MAR-1987 
CPC <CPC> SEES 1987 HIGHER EARNINGS PER SHARE. CPC International Inc said it expects 1987 earnings per share to increase over 1986 levels. "We are confident that 1987 will top 1986 in earnings per share and are optimistic about our longer-term future as well," the company said in its 1986 annual report. In 1986, CPC earned 219.2 mln dlrs, or 2.30 dlrs a share, on revenues of 4.55 billion dlrs compared with income of 142 mln dlrs or 1.46 dlrs on sales of 4.21 billion dlrs in 1985. The share figures are adjusted for a 2-for-1 split paid in January. A share buyback program started last year reduced the number of shares outstanding to 82.6 mln at year-end 1986 from 97.2 mln dlrs the end of 1985, adjusted for the split. The food and grocery products company also said it was the subject of five stockholder lawsuits and one class action suit, filed last November and December in Delaware, New York and New Jersey. The suits are related to the company's purchase of its shares from Salomon Brothers Inc after Salomon bought a block of the stock from Ronald Perelman, who had acquired nearly 3.7 mln CPC shares, or 7.6 pct of the company, last year. The suits allege the company bought the shares back at an artificially inflated price, violating securities laws, breaching directors' fiduciary duties and wasting corporate assets. CPC said the defendants, which include the company, its directors, Salomon and Perelman, deny all the allegations of improper conduct and are defending the suits.  
NOVAR ELECTRONICS <NOVR> SEES RESULTS IMPROVING. Novar Electronics corp said it expects improved earnings this year due to a rapid expansion of its Logic One computerized buolding management system customer base and expectations of good crime deterrent business. The company today reported earnings for the year ended January Three of 207,514 dlrs, up from 98,050 dlrs a year before.  
CAROLINA POWER <CPL> CANCELS GENERATING UNIT. Carolina Power and Light Co said its board has decided to cancel coal-fired Mayo Unit Two, the second unit planned for its Mayo Plant in Person County, N.C. The company said the 690,000 kilowatt unit was only about one pct complete and was scheduled for commercial service in 1992. Carolina Power said the status of the unit had been under review because of a decision by the North Carolina Environmental Management Commission that would have required the unit to be equipped with expensive sulphur dioxide-removing scrubbers. Carolina Power said Unit One, which has been in operation since 1983, meets all air quality regulations without scrubbers through the use of low-sulphur coal, and "The addition of scrubbers to Mayo Unit Two would have produced only marginal air quality improvements." The company said it will be able to purchase lower-cost power from Duke Power Co <DUK> for intermediate and peaking purposes than the projected cost of power from Mayo Two with scrubbers.  It said it will retain the Mayo Two site for later development of a generating unit. Carolina Power said Mayo Two was projected to cost about 877 mln dlrs, including 200 mln dlrs for scrubbers.  "The higher construction costs, plus higher operating costs, would increase the cost of power produced by Mayo Unit Two with scrubbers by about 90 mln dlrs per year." A company spokesman said the company has already spent about 23 mln dlrs on Mayo Two. He said no estimate has yet been made of the cost of canceling the plant, but the company does not expect to take a charge against earnings.  He said Carolina Power intends to include the cancellation costs in rate filings it will make late this year or early next year.  
ALLISON'S PLACE INC <ALLS> 4TH QTR NET. Qtr ends Jan 31 Shr seven cts vs 20 Net 1,84,000 vs 387,000 revs 9.1 mln vs 6.7 mln Avg shrs 2,804,752 vs 1,875,000 12 mths shr 13 cts vs 33 cts Net 315,000 vs 627,000 revs 32.4 mln vs 24.6 mln Avg shrs 2,475,943 vs 1,875,000  
CAROLINA POWER AND LIGHT CO <CPL> SETS PAYOUT. Qtly div 69 cts vs 69 cts prior Pay May One Record April 10  
MURRAY OHIO <MUR> SEES HIGHER FIRST QUARTER NET. Murray Ohio Manufacturing Co said it expects first quarter earnings to be higher than the year-ago 4,800,840 dlrs or 1.25 dlrs per share due to excellent lawn and garden shipments. The company said bicycle sales were soft early in the period, but recent orders and shipments have been running well ahead of last year. It said it expects to meet analysts' projections of earnings for the full year of 1.50 dlrs per share and it could possibly exceed the estimate if orders continue strong.  
DEL-VAL FINANCIAL CORP <DVL> SETS PAYOUT. Mthly div 14-1/2 cts vs 14-1/2 cts prior Pay July One Record June 17  
ENRON <ENE> TO PAY DIVIDENDS ON PREFERRED. Enron Corp said it will pay accrued second quarter dividends on the three series of preferred stock it will redeem on May 1. The company said it will pay second quarter accrued dividends to the redemption date of 53 cts per share on the 6.40 pct stock, 56 cts on 6.84 pct and 70 cts on 8.48 pct.  
ALLISON'S PLACE <ALLS> SALES INCREASE IN FEBRUARY. Allison's Place Inc president Marvin Schenker said company-owned stores sales for February increased 82 pct over the same period last year. He said comparable store sales in February increased 36 pct. The company, which owns and franchises a total of 237 clothing outlets where all articles cost six dlrs, will increase that figure to seven dlrs starting March 1, Schenker said. He said the impact of that boost will start to be felt in the early part of the company's second quarter and continue throughout the year. Schenker said costs of the company's merchandise will not increase.  
BORMAN'S INC <BRF> 4TH QTR NET. Shr 1.10 dlrs vs 1.33 dlrs Net 3,065,000 vs 3,730,000 Sales 273.9 mln vs 241.0 mln Year Shr 3.27 dlrs vs 2.62 dlrs Net 9,168,000 vs 7,338,000 Sales 1.07 billion vs 987.2 mln NOTE: Fiscal 1987 net includes tax credits of 10 cts for the fourth quarter and 1.04 dlrs for the year compared with 43 cts and 85 cts in the respective periods of fiscal 1986.  
(CORRECTED)-BANKERS TRUST NEW YORK <BT> PAYOUT. Qtly div 41-1/2 cts vs 41-1/2 cts prior Pay April 25 Record March 31 NOTE: Full name Bankers Trust New York Corp. (Company corrects pay date, April 25, not April 28 in story that ran yesterday.  
NE ELECTRIC <NES> AUDITORS QUALIFY ANNUAL REPORT. New England Electric System's auditors have again qualified the utility's annual report because of uncertainty about whether its oil and gas subsidiary can recover its investments. The qualification was noted in the annual report which New England Electric released at a security analysts meeting today. The auditors also qualified the company's 1985 report for the same reason, noting the sharp drop in oil and gas prices in early 1986. President Samuel Huntington told analysts the utility will have to take a write-down of about 235 mln dlrs if Federal regulators do not allow the company to pass on the losses cited by the accountants to its rate payers.  
CORRECTED - FEDERAL PAPER <FBT> RAISES PAYOUT. Qtly div 17-1/2 cts vs 17-1/4 cts Pay April 15 Record March 31 NOTE: Full name Federal Paper Board Co. (Corrects headline and dividend figure in item appearing March 17 to show dividend was raised.)  
RADA ELECTRONIC INDUSTRIES<RADIF> NINE MTHS NET. Ended December 31 Shr three cts vs nine cts Net 220,000 vs 721,000 Revs 4,920,000 vs 4,184,000 Avg shrs 6,425,925 vs 6,599,000 NOTE: Full name Rada Electronic Industries Ltd.  
CHILDREN'S DISCOVERY <CDCRA> 4TH QTR LOSS. Shr loss 18 cts vs profit six cts Net loss 509,471 vs profit 163,840 Revs 2,623,974 vs 1,835,580 12 mths Shr loss 18 cts vs profit 10 cts Net loss 494,352 vs profit 173,948 Revs 10.1 mln vs 3,551,429 NOTE: 4th qtr loss reflects 290,000 dlrs of non-recurring expenses related to senior management changes. Full name of company is Children's Discovery Centers of America Inc.  
CPI CORP <CPIC> TO POST HIGHER 1986 RESULTS. CPI Corp said it expects to post higher sales and earnings for its fiscal year ended February 7 when it officially reports results in three weeks. It said preliminary figures show total sales of 258 mln dlrs, up 30 pct from 198 mln dlrs in its 1985 fiscal year. Net earnings from continuing operations rose to 18 mln dlrs, up almost 31 pct from 13.9 mln dlrs, while per share earnings from continuing operations were 2.22 dlrs, up 23 pct from 1.80 dlrs. There were 552,500 additional shares outstanding.  
LAIDLAW TRANSPORTATION <LDMFA> SEES BETTER YEAR. Laidlaw Transportation Ltd said earnings per share for the current fiscal year should increase by "substantially more" than the 30 pct average annual growth experienced in the last four years. Revenues for the year ended August 31 will be about 1.2 billion dlrs, including GSX Corp, the U.S. waste services unit acquired from Imasco Ltd last year for 358 mln dlrs, Laidlaw president Michael de Groote told analysts. Last year, Laidlaw had operating earnings of 66.2 mln dlrs, or 63 cts per share, on revenues of 717.8 mln dlrs. De Groote also said the company expects "excellent results" in the second quarter ended February 28, but would not be more specific. He said his revenue estimate for fiscal 1987 does not include possible further acquisitions and said that the addition of GSX will produce increasing benefits in fiscal 1988 through fiscal 1990. De Groote said the increased earnings in the previous four quarters was due partly to internal growth of about 15 pct. The rest came from acquisitions, he said. Laidlaw expects to sell a small rubber recycling operation, a subsidiary of GSX, within the next few weeks, but this will not make any material contribution to earnings, de Groote said. He also said he is "not very optimistic" about the ongoing negotiations to buy 50 pct of Tricil Ltd, a Toronto-based chemical and solid waste services company with Canadian and U.S. operations, from <Trimac Ltd> of Calgary. De Groote said that, regardless of the outcome of the proposed Tricil acquisition, Laidlaw will decide within the next 30 days whether to stay in the North American chemical waste business through GSX Corp. "We feel it is a profitable business with good growth potential and we now want to stay in it if we can get the right management," de Groote said. Laidlaw financed the acquisition of GSX by its U.S. subsidiary, Laidlaw Transportation Inc, with the proceeds of a 200 mln Canadian dlr preferred stock issue and borrowing. De Groote said the company will gain about 138 mln dlrs in cash by August 31 from the exercise of warrants. De Groote also said waste services in fiscal 1987 will represent about 49 pct of revenues, school buses will contribute 49 pct and trucking about two pct. The trucking subsidiary in western Canada is performing well and there are no plans to sell it, he said. He would not estimate the contribution of each segment to earnings per share for the year. He also said that further acquisitions of school bus operations in the U.S. are likely within the next few months.  
ENSOURCE INC <EEE> 4TH QTR LOSS. Shr loss 60 cts vs loss 6.50 dlrs Net loss 2,012,000 vs loss 21.9 mln Revs 8.6 mln vs 13.5 mln Year Shr loss 1.04 dlrs vs loss 5.96 dlrs Net loss 3.5 mln vs loss 20.2 mln Revs 36.6 mln vs 52.1 mln  
GREAT LAKES FEDERAL <GLFS> HIKES DIVIDEND. Qtly div 15 cts vs 10 cts prior qtr Pay 17 April Record 3 April NOTE: Great Lakes Federal Savings and Loan is full name of company.  
MURRAY OHIO <MYO> SEES HIGHER 1ST QTR EARNINGS. The Murray Ohio Manufacturing Co said it expects first quarter earnings to be higher than the 4,800,840 dlrs, or 1.25 dlrs per share, it recorded for the first quarter of last year. The company, which produces lawn mowers and bicycles, said earnings are ahead of last year due to increased lawn and garden shipments in January and February and a record-setting pace in March.  
ALLEGHANY CORP <Y> DECLARES 1987 DIVIDEND. Alleghany Corp said its board declared a stock dividend of one share of its common for every 50 shares outstanding, as the company's dividend on its company for 1987. It said the dividend will be distributed on April 30, to holders of record on March 30. Alleghany said cash will be paid in lieu of any fractional shares of its stock.  
PREMIER INDUSTRIAL CORP <PRE> 3RD QTR NET. Ended Feb 28 Shr 39 cts vs 35 cts Net 11.5 mln vs 10.4 mln Revs 111.0 mln vs 104.6 mln Nine mths Shr 1.16 dlrs vs 1.04 dlrs Net 34.3 mln vs 30.8 mln Revs 335.2 mln vs 320.0 mln Avg shrs 26.7 mln vs 29.6 mln  
U.S. BANK INCOME SHOWS FIRST DROP IN 25 YEARS. Problems in the farmbelt and oilpatch regions contributed to the first decline in overall income for U.S. banks in a quarter century, the Federal Deposit Insurance Corp (FDIC) said. The nation's 14,181 commercial banks had net income of 17.8 billion dlrs in 1986, down slightly from 1985's record 18.1 billion dlrs. The total was still the second highest ever reported, but it was the first time income had not grown since 1961. The figures reflected a radical split in the health of banks in the two halves of the country, the FDIC said. In the East, one in 12 banks had losses last year, while one in four banks west of the Mississippi River had losses. Nationwide, one out of five banks reported losses, the FDIC said in the first of a new series of quarterly banking profiles it planned to issue. "I don't remember a time when there was such a clear distinction by geographic area," FDIC Chairman William Seidman told reporters. He said that while the figures were not good, they showed the problem did not lie with the banking system as a whole but with regional differences in economic performance. Some 44 banks have failed so far this year, twice as many as failed by this time a year ago, but Seidman said he doubted the pace would continue. On a positive note, banks increased capital to a record 208 billion dlrs last year, and there has been a slowing in the number of new problem banks in all regions except the Southwest, Seidman said. Banks' provision for losses from bad loans in the fourth quarter increased to 21.7 billion dlrs, a 23 pct rise from a year ago. Large banks -- those with assets of one billion dlrs or more -- reporting fourth-quarter losses totaled 22, the FDIC said. Seidman said it was too early to say what effect Brazil's moratorium on debt interest payments would have on U.S. banks. He said bank deregulation had given managers more freedom to run their banks and that an increase in failures was to be expected. But this freedom from regulatory restraints also has meant other banks that were better managed have gotten stronger, Seidman said.  
SOMERSET SAVINGS BANK <SOSA> 4TH QTR FEB 28 NET. Shr 55 cts vs NA Net 2,512,000 vs 773,000 Year Net 7,123,000 vs 3,098,000 Assets 417.7 mln vs 251.1 mln Deposits 329.4 mln vs 230.1 mln Loans (net) 366.1 mln vs 205.2 mln NOTE: Some per shr amounts not available as company converted to public ownership in July 1986.  
VESTAR SECURITIES INC <VES> SETS PAYOUT. Qtrly div 30.1 cts vs 34.1 cts prior Pay April 14 Record March 31 NOTE: company said prior qtr includes end of year additional four cts dividend.  
AMERITECH <AIT> REGULAR DIVIDEND SET. Qtly div 1.25 dlrs vs 1.25 dlrs Pay May 1 Record March 31 NOTE: Full name is American Information Technologies Corp  
HARTFORD NATIONAL CORP <HNAT> DECLARES DIVIDEND. Qtly div 30 cts vs 30 cts prior Pay April 20 Record March 31  
ARKANSAS BEST CORP <ABZ> DECLARES QTLY DIVIDEND. Qtly div nine cts vs nine cts prior Pay April 13 Record March 30  
AUDITORS LIFT QUALIFICATION ON PS INDIANA <PIN>. Auditors for Public Service Co of Indiana Inc lifted a qualification, in effect for two years, on its 1986 financial results, according to the company's annual shareholders' report. PSI's report was qualified in 1984 and 1985 when its auditors, Arthur Andersen and Co, questioned the utility's ability to recover costs of its Marble Hill nuclear power plant and to extend the maturity of its credit agreement. The company wrote off 141 mln dlrs of Marble Hill costs in November, 1986 and repaid its final 20 mln dlrs in debt in October, 1986, it said.  
MARSHALL INDUSTRIES <MI> 3RD QTR FEB 28 NET. Shr 14 cts vs 12 cts Net 1,017,000 vs 877,000 Sales 68.1 mln vs 61.2 mln Nine Mths Shr 40 cts vs 17 cts Net 2,986,000 vs 1,215,000 Sales 205.3 mln vs 174 mln Note: Per share figure reflects two-for-one stock split of July 1986.  
FINANCIAL BENEFIT GROUP INC <FBGI> YEAR LOSS. Shr loss 11 cts vs loss 48 cts Net loss 254,000 vs loss 784,000 NOTE: Includes realized gains of one mln dlrs versus 840,000 dlrs.  
ARKANSAS BEST <ABZ> SEES LOWER FIRST QTR NET. Arkansas Best Corp said its 1987 first quarter earnings will be significantly lower than fully diluted earnings of 22-1/2 cts per share in last year's first quarter. The company said pricing competition and lower traffic levels in the motor carrier industry hurt its first quarter results. However, the company said its furniture and tire operations are more profitable this year than last year. Arkansas Best also said that if the industry sustains the upcoming 2.9 pct motor carrier rate hike it will offset the Teamster labor increase scheduled for April 1. It said the labor increase then will be 3.2 pct for ABF Freight System, its largest unit.  
URS CORP <URS> 1ST QTR JAN 31 NET. Shr primary 29 cts vs 26 cts Shr diluted 27 cts vs 23 cts Net 1,500,000 vs 1,008,000 Revs 30 mln vs 23.1 mln Avg shrs pimary 5,254,000 vs 3,821,000  
TIE/COMMUNICATIONS INC <TIE> 4TH QTR LOSS. Oper shr loss 1.28 dlrs vs loss 59 cts Oper net loss 46.0 mln vs loss 21.1 mln Revs 63.9 mln vs 77.8 mln 12 mths Oper shr loss 1.65 dlrs vs loss 2.09 dlrs Oper net loss 59.3 mln vs 75.0 mln Revs 298.2 mln vs 321.3 mln NOTE: for the qtr and yr 1986, loss reflects pretax loss of 45.0 mln and 55.5 mln, which included a writedown of inventory and restructuring charges amounting to 37.1 mln and 37.9 mln, and a tax gain of 940,000 and 3,094,000. For the qtr and yr 1985, loss consisted of a pretax loss of 23.9 mln and 102.3 mln which included a writedown of inventory, restructuring charges and loss on the sale of a division amounting to 13.0 mln and 61.0 mln, and a tax gain of 3,036,000 and 28.5 mln. qtr 1985, excludes estimated loss 3,354,000 for disposal of HCL Leasing Corp sold July 1986, as well as its operating results prior to this date. year current and prior excludes loss 1,543,000, and 2,859,000, respectively, for estimated loss on disposal of HCL Leasing Corp. qtr and year current excludes foreign tax 312,000, and 1,179,000, respectively, which payment would have been required in the absence of foreign operating loss carryforwards from prior years.  
<HAWKER SIDDELEY CANADA INC> YEAR NET. Shr 1.06 dlrs vs 1.54 dlrs Net 9,455,000 vs 13.4 mln Sales 418.7 mln vs 422.0 mln Note: 59 pct owned by Hawker Siddeley Group PLC  
TEL OFFSHORE TRUST <TELOZ> UPS QUARTERLY PAYOUT. Qtly distribution 43.5884 cts vs 37.2427 cts in prior qtr Payable April 10 Record March 31  
EMHART CORP <EMH> SET TO INCREASE EARNINGS. Emhart Corp said it plans to increase worldwide revenues and earnings at an annual compounded growth rate of 15 pct and about 13 pct, respectively. It said these objectives were based on several assumptions, including a four pct average inflation rate through 1989 and a two pct to three pct GNP real growth. In 1986, Emhart reported a net loss of 10 mln dlrs or 35 cts a share, after a 90 mln after-tax restructuring charge, which realigned the company's assets. Emhart has divested itself of many of its units to focus on three primary markets--industrial products, consumer products, and information and electronic systems. Emhart said industrial products should account for about 62 pct of projected 1987 revenues of 2.3 billion dlrs, while consumer products should account for about 20 pct of those revenues and information and electronic systems about 18 pct.  
GRAPHIC INDUSTRIES INC <GRPH>4TH QTR JAN 31 NET. Shr 27 cts vs 23 cts Net 1,713,000 vs 1,447,000 Revs 46.9 mln vs 39.3 mln Year Shr 97 cts vs 78 cts Net 6,154,000 vs 4,855,000 Revs 167.9 ln vs 130.4 mln  
CENTRAL PENNSYLVANIA FINANCIAL CORP <CPSA>PAYOUT. Qtly div 10 cts vs 10 cts in prior qtr Payable April 22 Record April 10  
HARTFORD NATIONAL CORP <HNAT> REGULAR DIVIDEND. Qtly div 30 cts vs 30 cts in prior qtr Payable April 20 Record March 31  
BFI COMMUNICATIONS SYSTEMS INC 4TH QTR LOSS. Shr loss 18 cts vs loss 20 cts Net loss 629,527 vs loss 697,847 Revs 404,345 vs 1,558,951 Year Shr loss 56 cts vs loss 1.81 dlrs Net loss 1,910,063 vs loss 5,744,588 Revs 5,999,377 vs 6,347,702 Avg shrs 3,441,513 vs 3,175,402  
CENTRAL ILLINOIS <CIP> 12 MTHS FEB 28 NET. Shr 2.04 dlrs vs 1.83 dlrs Net 76,172,000 vs 71,101,000 Revs 621.7 mln vs 670.3 mln NOTE: Central Illinois Public Service Co is full name of company. Most recent 12 months net excludes preferred dividends of 6.4 mln dlrs compared with 8.6 mln dlrs last year.  
BOGART CRAFTS CORP <VOGT> YEAR LOSS. Yr ends Nov 29, 1986 Shr loss 61 cts vs loss 1.19 dlrs Net loss 1,017,000 vs loss 1,987,000 Revs 10.4 mln vs 10.3 mln NOTE: Prior yr ended Nov. 30  
LAENDERBANK EXPECTS MODEST PROFIT RISE IN '87. Oesterreichische Laenderbank AG [OLBV.VI] expects to maintain its dividend and to record a moderate rise in profits this year after the 181.5 mln schilling net profit made in 1986, General Director Gerhard Wagner said. Wagner told a news conference that last year's 34.3 pct rise in net profit from 135.1 mln in 1985 was largely due to greater domestic business and wider margins on schilling interest rates. The bank, Austria's third largest, raised its 1986 dividend to 12 pct of its 1.5 billion schilling nominal share capital from 10 pct on capital of 1.35 billion in 1985. Announcing the 1986 results, Wagner said: "We will endeavour to maintain the higher dividend in 1987." Laenderbank's balance sheet total rose five pct to 197.7 billion schillings against 8.1 pct growth in 1985. Foreign currency business last year accounted for some 37 pct of balance sheet total compared with about 41 pct in 1985. Wagner blamed the realtive shrinkage of foreign business chiefly on the dollar's fall against the schilling, which is effectively pegged to the mark. The dollar's weakness had wiped some 8.9 billion schillings off the balance sheet total. Wagner declined to give an exact figure for profits from the bank's London branch, which opened in April 1985, but said that it came close to one mln stg. On schilling lending, profit on interest had risen 18 pct to 2.19 billion schillings while commission earnings climbed 8.7 pct to 738.9 mln. According to the 1987 federal budget, the state is due to lower its stake 60 pct in Laenderbank, probably to 51 pct. Wagner said the exact timing of the move depended on the state.  
RESTAURANT MANAGEMENT SERVICES <RESM> IN PAYOUT. Qtly div 1-3/4 cts vs 1-3/4 cts prior Pay April 23 Record April nine NOTE: Full name Restaurant Management Services Inc  
CITIZENS FIRST BANCORP INC <CFB>RAISES DIVIDEND. Qtly div 15 cts vs 12.5 cts prior Pay May 1 Record April 17 Note: Prior dividend is adjusted for recent six-for-five stock split.  
ALLISON'S PLACE INC <ALLS> 4TH QTR NET. Shr seven cts vs 20 cts Net 184,000 vs 387,000 Revs 9,100,000 vs 6,700,000 Year Shr 13 cts vs 33 cts Net 315,000 vs 627,000 Revs 32.4 mln vs 24.6 mln  
CONAGRA INC 3RD QTR SHR 36 CTS VS 31 CTS.  CONAGRA INC 3RD QTR SHR 36 CTS VS 31 CTS  
READING CO <RDGC> 4TH QTR OPER NET. Oper shr 40 cts vs 30 cts Oper net 1,364,000 vs 1,025,000 Revs 14.7 mln vs 11.0 mln Avg shrs 3,372,970 vs 3,425,400 Year Oper shr 86 cts vs 32 cts Oper net 2,925,000 vs 1,109,000 Revs 43.0 mln vs 35.7 mln Avg shrs 3,383,651 vs 3,418,594 NOTE: Year-ago periods exclude extraordinary gain of 1.1 mln dlrs or 31 cts/shr. Includes gains of 988,000 dlrs vs one mln dlrs in qtr and 2.2 mln dlrs vs 1.1 mln dlrs in year from tax loss carryforwards.  
CONAGRA INC <CAG> 3RD QTR FEB 22 NET. Shr primary 36 cts vs 31 cts Shr diluted 36 cts vs 31 cts Net 25.1 mln vs 21.7 mln Revs 1.53 billion vs 1.39 billion Avg shrs primary 68.8 mln vs 68.9 mln Avg shrs diluted 70.5 mln vs 71.0 mln Nine mths Shr primary 1.32 dlrs vs 1.13 dlrs Shr diluted 1.30 dlrs vs 1.11 dlrs Net 90.8 mln vs 77.6 mln Nine mths Revs 5.18 billion vs 4.58 billion Avg shrs primary 68.9 mln vs 68.8 mln Avg shrs diluted 70.6 mln vs 71.0 mln Note: Net is before preferred dividend payments. Current nine mths net includes after-tax provision of five mln dlrs for consolidation of food plants. Shr and avg shrs data reflect two-for-one split in December 1986. Results for year-ago nine mths and current first half restated to reflect acquisition of E.J. Miller Enterprises for 1,040,000 shares in January 1987.  
NORTH-WEST TELECOM <NOWT> 4TH QTR OPER NET. Oper shr 64 cts vs 52 cts Oper net 872,272 vs 706,836 Revs 9,271,541 vs 7,744,466 Year Oper shr 2.03 dlrs vs 1.96 dlrs Oper net 2,782,7801 vs 2,684,089 Revs 31.2 mln vs 29.1 mln NOTE: Full name is North-West Telecommunications Inc  
AULT INC <AULT> 3RD QTR MARCH ONE NET. Shr profit eight cts vs loss 16 cts Net profit 153,000 vs loss 310,000 Sales 3,937,000 vs 2,364,000 Nine Mths Shr profit five cts vs loss 53 cts Net profit 97,000 vs loss 1,042,000 Sales 10.2 mln vs 7,564,000  
AMERICUS TRUST <ATU> AND <ATP> INITIAL DIVIDEND. Americus Trust for American Telephone and Telegraph Shares Series Two said it will distribute an initial dividend of 28.75 cts on May 12 to shareholders of record March 31.  
INTER-TEL INC <INTLA> 1ST QTR FEB 28 NET. Shr three cts vs one ct Net 235,000 vs 66,000 Revs 10 mln vs 8,202,000 Avg shrs 7,972,000 vs 8,545,000  
TEXSTYRENE CORP <FOAM> 11 MTHS DEC 31 LOSS. Shr loss 83 cts Net loss 2,115,000 Revs 139.6 mln Avg shrs 3.6 mln NOTE: Company went public February 1986.  
FLUOROCARBON CORP <FCBN> QTLY DIVIDEND. Shr seven cts vs seven cts prior qtr Pay April 30 Record April 15  
METRO MOBILE <MMCT> DECLARES STCOK DIVIDEND. Metro Mobile CTS Inc said it declared a 10 pct stock dividend. The dividend will be distributed on April 13 to holders of record March 30.  
LAURENTIAN GROUP SEES HIGHER SHARE NET. <Laurentian Group Corp> said it expects 1987 earnings per share will show about the same proportionate increase as in 1986. Last year, the company had 25.7 mln dlrs operating profit, or 76 cts per share, up from 11.1 mln dlrs, or 59 cts per share, in 1985. Shares outstanding increased to 39 mln from 27.8 mln. The American holding company, Laurentian Capital Corp, will show a substantial improvement this year, chairman Claude Castonguay said before the annual meeting. Laurentian Capital Corp, which recently acquired two small U.S. life insurance companies, had 1986 profit of 1.1 mln U.S. dlrs, or eight cts per share, compared to seven mln U.S. dlrs, or 68 cts per share. Castonguay said Laurentian Group Corp, the parent firm, plans to fill out its national financial services distribution system and make further acquisitions if the right opportunity occurs. The company also may expand this year in continental Europe, in conjunction with La Victoire, a French insurance company, he said.  
METRO MOBILE <MMCT> DECLARES STOCK DIVIDEND. Metro Mobile CTS Inc said it declared a 10 pct stock dividend. The dividend will be distributed on April 13 to holders of record March 30.  
<TRIDEL ENTERPRISES INC> YEAR NET. Shr 1.05 dlrs vs 51 cts Net 8,500,000 vs 4,100,000 Revs 183.2 mln vs 136.6 mln  
COMMUNITY SAVINGS BANK <CSBN> QTLY DIVIDEND. Qtly div six cts vs six cts prior Pay April 17 Record April 3.  
TEXSTYRENE <FOAM> SUSPENDS PREFERRED PAYMENTS. Texstyrene Corp said it has suspended quarterly cash dividend payments on its 9.5 pct convertible exchangeable preferred stock. The suspension effects the March 15 payment, and it said it does not expect to pay preferred dividends in the forseeable future. It said the payments were suspended because of certain covenants contained in its loan agreements. A spokesman said the company's loss of 2,115,000 dlrs for the first 11 months as a public company did not meet an income condition on the loans, leading to the suspension. The maker of foam cups, food containers and other products said it had 733,332 outstanding preferred shares, which had been privately placed. The dividend payments on the shares amounted to 1,045,000 dlrs per year, the spokesman said.  
SPECTRAN CORP <SPTR> 4TH QTR. Shr loss 2.22 dlrs vs profit 16 cts Net loss 10.2 mln vs profit 760,443 Revs 1.1 mln vs 3.7 mln Year Shr loss 3.68 dlrs vs profit 64 cts Net loss 16.9 mln vs profit 2.7 mln Revs 3.6 mln vs 15.2 mln NOTE:1986 4th qtr includes 6.7 mln dlr restructuring charge and writedowns of 280,000 dlrs. year includes writedown of 3.6 mln dlrs.  
<VANGUARD INDEX TRUST> QUARTERLY DIVIDEND. Qtly div 18 cts vs 18 cts prior Pay April 30 Record March 26.  
MESA ROYALTY TRUST <MRT> MONTHLY PAYOUT. Mesa Royalty Trust <MRT> said unit holders of record March 31 will receive a distribution amounting to 55,192 dlrs or 2.96 cts per unit, payable April 30.  
MITEK SYSTEMS EXPECTS LOSS IN CURRENT QUARTER. <Mitek Systems Inc> said it expects to report a loss in the current quarter ending March 31, due primarily to the government buying cycle. The company did not quantify the size of the expected loss. It said it expects sales and profits for fiscal 1987, however, to exceed those of 1986. In 1986 Mitek reported sales of five mln dlrs and a net profit of 14,000 dlrs. Mitek als said it has introduced a line of 15 page per minute desk top laser printers. Limited shipments will begin next quarter, with full production planned for the following quarter, it said.  
<TRIDEL ENTERPRISES INC> SETS INITIAL DIVIDEND. Qtly div five cts Pay April 1 Record March 27  
WEISFIELD'S INC <WEIS> QUARTERLY DIVIDEND. Qtly div 12-1/2 cts vs 12-1/2 cts Pay April 23 Record April 2  
SWISSAIR 1986 NET 64.5 MLN SWISS FRANC VS 68.5 MLN, DIV 33 FRANCS VS 38.  SWISSAIR 1986 NET 64.5 MLN SWISS FRANC VS 68.5 MLN, DIV 33 FRANCS VS 38  
SWISSAIR <SWSZ.Z> YEAR 1986. Net 64.5 mln Swiss francs vs 68.5 mln Div 33 francs per share vs 38 Turnover 4.03 billion vs 4.35 billion.  
Legal and General Group 1986 pre-tax profit 83.2 mln stg vs 31.5 mln..  Legal and General Group 1986 pre-tax profit 83.2 mln stg vs 31.5 mln.  
JOHN FAIRFAX LTD <FFXA.S> FIRST HALF. 26 weeks ended Dec 28 Net shr 25.9 cents vs 28.2 Int div 5.5 cents vs 5.0 Pre-tax 48.30 mln dlrs vs 44.29 mln Net 25.94 mln vs 25.35 mln Turnover 453.28 mln vs 407.35 mln Other income 4.48 mln vs 3.18 mln Shrs 100 mln vs 90 mln. NOTE - Div pay May 8. Reg April 14. Net is after tax 22.09 mln dlrs vs 18.60 mln, interest 11.60 mln vs 13.92 mln, depreciation 8.52 mln vs 7.06 mln and minorities 267,000 vs 346,000 but before net extraordinary profit 89.32 rpt 89.32 mln dlrs vs nil.  
Britoil Plc 1986 pre-tax profit 134 mln stg vs 759 mln..  Britoil Plc 1986 pre-tax profit 134 mln stg vs 759 mln.  
FAIRFAX SAYS HIGHER TAX HITS FIRST HALF EARNINGS. Media group John Fairfax Ltd <FFXA.S> said that its flat first half net profit partly reflected the impact of changes in the Australian tax system. Fairfax earlier reported net earnings edged up 2.3 pct to 25.94 mln dlrs in the 26 weeks ended December 28 from 25.35 mln a year earlier although pre-tax profit rose 9.1 pct to 48.30 mln from 44.29 mln. Net would have risen 10.1 pct but for the increase in company tax to 49 pct from 46 and the imposition of the tax on fringe benefits, paid by employers and not the recipients, the company said in a statement. Fairfax also pointed to the cyclical downturn in revenue growth in the television industry as another reason for the flat first half earnings. It said it considered the result satisfactory in view of these factors. Fairfax said its flagship dailies, The Sydney Morning Herald and the Melbourne Age, boosted advertising volume, as did the Australian Financial Review, and posted extremely satisfactory performances. Magazines also performed strongly. But an 8.9 pct rise in television costs outweighed a 4.0 pct rise in revenue, it said. Fairfax said a fall in net interest also contributed to net earnings because group borrowings were reduced following the receipt of a 96.11 mln dlr capital dividend from <Australian Associated Press Pty Ltd> (AAP) after the sale of AAP's "B" shares in Reuters Holdings Plc <RTRS.L>. This accounted for the 89.32 mln dlr extraordinary profit. Fairfax said it is too early to predict results for the full year. Increased borrowings after the recent 320 mln dlr acquisition of the HSV-Seven television station in Melbourne will hit earnings but networking with the Channel Sevens in Sydney and Brisbane will produce some offsetting cost savings.  
BRITOIL PLC <BTOL.L> 1986 YR. Shr 6.56p vs 50.31p Final div 6p, making 8p vs 13p. Pre-tax profit 134 mln stg vs 759 mln. Net profit 33 mln vs 253 mln. Turnover 978 mln stg vs 1.80 billion. Extraordinary debit 50 mln vs nil. Operating profit 149 mln stg vs 756 mln. Exceptional debit on rationalisation programme 12 mln vs nil Petroleum Revenue Taxes 77 mln vs 319 mln, U.K. Corporation tax and overseas tax 24 mln vs 187 mln, Note - The net effect of accounting changes in 1986 was to reduce after tax profits by 47 mln stg. Retained earnings for prior years were increased by 209 mln. Extraordinary debit of 50 mln stg related to the decision to seek a buyer for the company's U.S. Assets.  
LEGAL AND GENERAL GROUP PLC YEAR 1986. Shr 14.58p vs 7.86p Div 6.5p making 9.75p, an increase of 19.4 pct Pretax profit 83.2 mln stg vs 31.5 mln Net after tax 68.6 mln stg vs 37.7 mln Pretax profit 83.2 mln stg vs 31.5 mln, consists of - Long term business 45.9 mln stg vs 43.8 mln U.S. Long term business 6.2 mln vs 8.9 mln Fund management 4.7 mln vs 6.5 mln Short term business 4.7 mln vs loss 29.0 mln Associate companies 0.9 mln vs 0.8 mln Shareholders other income and outgoings 0.4 mln debit vs 0.5 mln credit Exceptional long-term business profit 21.4 mln vs nil  
BELVEDERE CORP <BLV> 4TH QTR LOSS. Oper shr loss 21 cts vs loss 95 cts Oper net loss 666,000 vs loss 2,184,000 Avg shrs 3,181,805 vs 2,310,200 Year Oper shr loss 30 cts vs loss 23 cts Oper net loss 823,000 vs loss 606,000 Avg shrs 2,757,040 vs 2,614,225 NOTE: Net excludes realized investment gains of 666,000 dlrs vs 289,000 dlrs in quarter and 2,274,000 dlrs vs 1,468,000 dlrs in year.  
CARTER HAWLEY HALE STORES INC 4TH QTR SHR LOSS 1.58 DLRS VS PROFIT 58 CTS.  CARTER HAWLEY HALE STORES INC 4TH QTR SHR LOSS 1.58 DLRS VS PROFIT 58 CTS  
TRANSAMERICA <TA> TO HAVE GAIN ON UNIT SALE. Transamerica Corp said it expects to realize a gain of about 75 mln dlrs on the previously-announced sale of the group life and health operations of its Transamerican Occidental Life Insurance Co subsidiary to Provident Life and Accident Co <PACC>. But it said its Transamerica Life Cos unit plans to change to a more conservative method of amortizing deferred policy acquisition costs, resulting in a one-time charge that will offset most of the gain from the sale. Transamerica said it has now signed a definitive agreement for the sale, which will be structured as a reinsurance transaction involving about 400 mln dlrs of reserve liabilities. It said the 75 mln dlr gain from the sale and about 125 mln dlrs of statutory surplus that previously supported operations of the group being sold will be used to support Transamerica Life Cos' efforts to accelerate the growth of its remaining businesses.  It said closing is expected by May One, subject to regulatory approvals.  
AMERITRUST <AMTR> SETS TWO FOR ONE STOCK SPLIT. AmeriTrust Corp said its board declared a two-for-one stock split, and management intends to recommend to directors an increase in the quarterly dividend to at least 50 cts per share presplit from the current 44 cts. The company said shareholders at the May 14 annual meeting will be asked to approve an increase in authorized common shares to 100 mln from 25 mln, as well as a limitation of directors' liability and the establishment of a classified board. The split is subject to approval of the increase in authorized common shares, it said.  
CARTER HAWLEY HALE STORES INC <CHH> 4TH QTR LOSS. ended Jan 31 Shr loss 1.58 dlrs vs profit 58 cts Net loss 24.2 mln vs profit 18.9 mln Sales 1.34 billion vs 1.32 billion Avg shrs 20.0 mln vs 19.8 mln Year Shr loss 1.27 dlrs vs profit 92 cts Net profit 4.2 mln vs profit 48.0 mln Sales 4.09 billion vs 3.98 billion Avg shrs 20.2 mln vs 19.6 mln NOTES: Share results after provision for preferred dividends Per share profits from operations were 1.46 dlrs vs 71 cts in the quarter and 2.44 dlrs vs 1.05 dlrs in year. On a fully diluted basis this was 1.11 dlrs vs 67 cts and 2.42 dlrs vs 1.58 dlrs, respectively, based on 33.0 mln vs 32.3 mln shares outstanding in quarter and 32.8 mln vs 32.1 mln in year 1986 results in both periods include pre-tax losses pf 2.2 mln dlr on sale of John Wanamaker and 25.0 mln dlrs related to recapitalization, for a combined primary per share charge of 1.58 dlrs in quarter and 1.57 dlrs in year. 1986 results also include an after-tax charge 29.3 mln dlrs, equal to 1.46 dlrs a share in quarter and 1.44 dlrs in year, for premium on early retirement of debt 1985 net in both periods includes pre-tax loss of 2.4 mln dlrs, equal to 13 cts a share, on sale of Holt Renfrew Results include LIFO charge 1.7 mln dlrs vs credit 4.4 mln dlrs in quarter and credit 1.9 mln dlrs vs credit 6.4 mln dlrs in year  
FIRST AMERICAN FINANCIAL<FAMR> IN SPECIAL PAYOUT. First American Financial Corp said its board declared a special dividend of 20 cts per share and the regular 25 ct quarterly dividend, both payable April 15 to holders of record March 31.  
CARIBOU ENERGY REVERSE SPLIT APPROVED. <Caribou Energy Inc> said shareholders have approved a one-for-100 reverse split that will take effect by tomorrow and the company has changed its name to <Texas Petroleum Corp>.  
SWISSAIR REPORTS LOWER PROFIT AND DIVIDEND. Swissair <SWSZ.Z> reported a 5.8 pct drop in 1986 net profit to 64.5 mln Swiss francs and said that, in line with its new, flexible dividend policy, it would cut its payout to 33 francs per share from 38. President Robert Staubli told a news conference that the first two months of this year gave hope that 1987 profit would at least equal last year's figure, but said much depended on outside factors such as fuel prices and the exchange rate. The fall was largely due to a 60 mln franc loss on Swissair's core flying business last year, against a profit of 27 mln francs the previous year, he said. The net profit figure was reached after receipt of some 68 mln francs from plane sales, compared with a mere 17 mln francs in 1985. Finance Head Martin Juenger said he expected around 20 mln francs from sales this year, although said much depended on the speed with which it decided to sell its DC-10s. Gross profit for 1986 reached 340.5 mln francs, with 276 mln francs subtracted for ordinary depreciation. Gross profits for the previous year had been 382.5 mln francs, with 314 mln subtracted for depreciation, including 45 mln francs supplementary depreciation. Staubli said the 1986 result, well below predictions made this time last year, suffered considerably due to exchange rate fluctuations, in particular the strength of the Swiss franc. While the negative effects on revenue of the sharp drop in the dollar were partially compensated for by cheaper fuel prices, there was no such offset for the strength of the franc against other European currencies. "Income and profit generated by services to these countries shrank by a very substantial margin," he said. "Exchange rate trends therefore hit us much more severely than most other airlines."  
STUARTS DEPARTMENT STORES <STUS> 4TH QTR NET. Ended Jan 31 Shr one ct vs 31 cts Net 29,000 vs 1,350,000 Revs 43.7 mln vs 32.4 mln Year Shr 29 cts vs 62 cts Net 1,251,000 vs 2,520,000 Revs 129.9 mln vs 96.1 mln NOTE: Full name Stuarts Department Stores Inc.  
IOMEGA CORP <IOMG> EXPECTS QTR AND YEAR LOSSES. Iomega Corp announced it expected revenues for the first quarter of 1987 to be significantly lower than planned and that it anticipated a loss for the quarter. In its annual report to be mailed to stockholders tomorrow, the company will announce its first quarter loss will be in excess of 10 mln dlrs primarily as a result of lower than anticipated revenues. The company said it recored net income of 4,572,000 dlrs, or 30 cts per share, for its first quarter fiscal 1986, on revenues of 35.0 mln. The company said it lowered its revenue plan for the balance of 1987 and also expects to record a loss for the entire 1987 year. Iomega said the first quarter loss will place the company in default under certain covenants in its bank line of credit unless these covenants are modified. The company is currently exploring alternatives for raising additional funds through a debt for equity financing.  
3COM CORP <COMS> 3RD QTR FEB 28 NET. Shr 22 cts vs 13 cts Net 3,166,000 vs 1,780,000 Sales 30.4 mln vs 16.9 mln Avg shrs 14.6 mln vs 14.0 mln Nine mths Shr 56 cts vs 33 cts Net 7,961,000 vs 4,562,000 Sales 78.8 mln vs 44.7 mln Avg shrs 14.3 mln vs 13.9 mln  
PORSCHE HALF-YEAR EARNINGS CALLED SATISFACTORY. Dr. Ing. H.C.F. Porsche AG <PSHG.F> said earnings in first half year 1986/87 were "satisfactory" despite burdens caused by the dollar's weakness against the mark and stagnating domestic demand. In its semi-annual shareholders' report, Porsche said first half turnover fell six pct to 1.71 billion marks from 1.83 billion in the same period of 1985/86. However, earnings were satisfactory, it said, without giving absolute figures. Domestic turnover fell 26 pct to 283 mln marks from 380 mln. Foreign turnover dipped to 1.43 billion marks from 1.45 billion in the first half of last year, although the export quota rose to 83 pct from 79 pct. The car sector accounted for 1.51 billion marks of turnover, against 1.63 billion the year earlier, it said. Production dropped five pct to 25,876 cars from 27,381. Manufacture of the 911 and 928 models rose six pct to 11,122 from 10,533 units but production of 924 and 944 models was cut by 12 pct to 14,754 units from 16,848 and would be cut further, the report said. Car sales fell four pct to 25.269 units from 26,414 in the comparable half year, the report said. U.S. Demand continued for all models but demand fell in other markets. Domestic sales were 39 pct down at 3,267 units from 5,397, while sales abroad rose five pct to 22,002 from 21,017. Share of exports in sales rose to 87 pct from 80 pct. Investments were reduced to 108 mln marks from 125 mln. Earnings were hit by lower sales and by the lower value of the dollar and currencies in other important markets. Nevertheless, sales and turnover would finish the July 11 year at a "high level," Porsche said.  
PROGRESSIVE BANK INC <PSBK>. Qtly div seven cts vs seven cts in prior qtr Payable April 15 Record March 31  
GERIATRIC AND MEDICAL CENTERS INC <GEMC> PAYOUT. Qtly div two cts vs two cts prior Pay April 24 Record April Three  
CONVENIENT FOOD MART INC <CFMI> 4TH QTR NET. Period ended Dec 28 Shr 42 cts vs 35 cts Net 941,000 vs 786,000 Revs 12,798,000 vs 2,269,000 Year Shr 97 cts vs 83 cts Net 2,211,000 vs 1,841,000 Revs 19,027,000 vs 6,474,000 NOTE: 1985 period ended December 29 Share results adjusted for five-for-four stock split on April 28, 1986 and 10 pct stock dividend issued Dec 10, 1986  
MEDCHEM PRODUCTS INC <MDCH> 2ND QTR FEB 28 NET. Shr 21 cts vs 21 cts Net 542,119 vs 520,668 Sales 2,035,759 vs 1,804,350 1st half Shr 38 cts vs 42 cts Net 956,228 vs 1,038,300 Sales 3,748,357 vs 3,482,066  
<PAGURIAN CORP LTD> YEAR NET. Shr 1.64 dlrs vs 90 cts Net 64.9 mln vs 28.8 mln Revs 73 mln vs 35 mln NOTE: Shares outstanding 39.5 mln vs 32.1 mln. Avg shrs not given. Company recently raised equity and voting interests in <Hees International Corp> to 13.4 pct and 16.1 pct, respectively.  
UNILEVER PLC ADJUSTS DIVIDEND. Unilever Plc <UN.AS> said a reduction in U.K. Advance Corporation Tax, (ACT) has prompted the company to adjust its 1986 final dividend to 36.17p per share from the originally declared 35.18p. Unilever's 1985 final dividend amounted 27.05p The adjustment stemmed from the dividend equalisation agreement between the British company and its Dutch partner Unilever NV. ACT in respect of any dividend paid by Unilever Plc has to be treated as part of the dividend. Unilever NV final dividend remains 10.67 guilders as declared with the 1986 results on March 3.  
BLOCKBUSTER ENTERTAINMENT CORP <BBEC> YEAR LOSS. Oper shr loss 1.25 dlrs vs loss 44 cts Oper net loss 2,915,000 vs loss 951,000 Revs 8,131,000 vs 119,000 NOTE: 1985 net excludes 625,000 dlr gain from discontinued operations. Net includes tax credits of 860,000 dlrs vs 285,000 dlrs.  
THE HOME DEPOT INC <HD> 4TH QTR FEB ONE NET. Shr 27 cts vs 10 cts Net 7,684,000 vs 2,587,000 Revs 273.9 mln vs 203.7 mln Year Shr 90 cts vs 33 cts Net 23.9 mln vs 8,219,000 Revs 1.01 billion vs 700.7 mln  
DEUTSCHE BABCOCK SEES HIGHER 1986/87 PROFITS. Deutsche Babcock AG <DBCG.F> expects profits to rise in the current financial year ending September 9 although the earnings level is still unsatisfactory, managing board chairman Helmut Wiehn said. He told a news conference that business during the year had weakened somewhat but was still generally positive. Sales during the first five months to February was 1.26 billion marks, 46.7 pct down from the same 1985/86 period. However, he expected turnover for the year to be approximately unchanged from the previous year's 5.14 billion marks when current orders from major projects are booked. Wiehn said incoming orders in the first five months to end- February totalled 2.50 billion marks compared with 2.04 billion for the same period in 1985/86. They included a 45.8 pct increase in domestic orders to 1.57 billion marks. Orders in hand for the five months were 16.7 pct higher at 8.64 billion marks. Wiehn added that Babcock was still aiming for a three pct yield on turnover. In the year to September 1986 group profits totalled 39 mln marks on sales of 5.14 billion against the previous year's 32 mln on 5.11 billion marks. Parent company turnover was unchanged at 25.6 mln marks. Wiehn said Babcock's liquidity had clearly improved in the current business year, with financial reserves in the first five months rising by 237 mln marks to 831 mln after increasing by 408 mln marks to 594 mln in 1985/86. He said pre-tax earnings per share for 1985/86, according to the DVFA method, were 26.95 marks from 21.40 marks and earnings after tax rose to 10 marks from 8.10. The company earlier said dividend will be unchanged at three marks for ordinary shares and 3.50 marks for preference shares.  
PILLSBURY CO 3RD QTR SHR 56 CTS VS 63 CTS.  PILLSBURY CO 3RD QTR SHR 56 CTS VS 63 CTS  
CONTROL RESOURCE <CRIX> SEES LOWER EARNINGS. Control Resource Industries Inc said the company estimates 1986 earnings to be between 800,000 and 900,000 dlrs, or 22 to 25 cts per share, compared with 852,000 dlrs, or 33 cts per share, during 1985. The company said preliminary estimates of 1986 revenues is 24.5 mln dlrs, compared with 7,900,000 for 1985. The estimated 1986 results are based on 3,207,000 shares outstanding, compared to 2,566,000 shares outstanding for 1985. R. Steven Lutterbach, chairman, said net income for 1986 was adversely affected primarily due to lower operating margins at the company's Western Environmental subsidiary, and to an increase in bad debt reserves. Western Environmental was acquired in March 1986. Lutterbach explained the company has taken steps to improve financial and accounting controls, primarily at Western, which were not adequate at the time of acquisition. He noted the final results for the fourth quarter will depend on the allocation of increased costs between the second and fourth quarters. Lutterbach said it is possible second quarter results will be restated, though final net income for the year will remain in the estimated range. He added preliminary indications for first quarter 1987 revenues were favorable.  
MANOR CARE INC <MNR> 3RD QTR FEB 28 NET. Shr 24 cts vs 21 cts Net 9,700,000 vs 8,286,000 Revs 120.6 mln vs 115.7 mln Avg shrs 40.0 mln vs 39.9 mln Year Shr 69 cts vs 68 cts Net 27.8 mln vs 27.1 mln Revs 374.9 mln vs 358.8 mln Avg shrs 40.0 mln vs 39.9 mln NOTE: 1986 year net includes charge of 2,396,000 dlrs, or six cts a share, for debt redemption  
ADTEC INC <JAIL> 3RD QTR FEB 28 NET. Oper shr 11 cts vs 11 cts Oper net 164,000 vs 161,000 Revs 2,598,000 vs 2,241,000 Nine mths Oper shr 28 cts vs 18 cts Oper net 419,000 vs 276,000 Revs 6,983,000 vs 5,019,000 NOTE: Net excludes tax loss carryforwards 11,876 dlrs vs 83,045 dlrs in quarter and 36,684 dlrs vs 144,590 dlrs  
PILLSBURY CO <PSY> 3RD QTR FEB 28 NET. Shr 56 cts vs 63 cts Net 48,500,000 vs 55,400,000 Sales 1.53 billion vs 1.46 billion Avg shrs 86.6 mln vs 87.3 mln Nine mths Shr 1.73 dlrs vs 1.79 dlrs Net 150,300,000 vs 156,200,000 Sales 4.60 billion vs 4.30 billion Avg shrs 86.7 mln vs 87.3 mln NOTE: 1987 results include gain of 9.7 mln dlrs, or 11 cts a share from sale of assets 1986 results include gain of 161 mln dlrs, or 18 cts a share, from sale of assets, offset partly by a restructuring provision Fiscal 1987 results restated to give effect to adoption of financial accounting standards relating to pension costs. Segment data for Foods restated to include results of commodity marketing, previously reported separately. Earnings restated for two-for-one stock split, effective Nov 30, 1986  
JIM WALTER CORP 2ND QTR SHR 86 CTS VS 62 CTS.  JIM WALTER CORP 2ND QTR SHR 86 CTS VS 62 CTS  
JIM WALTER CORP <JWC> 2ND QTR FEB 28 NET. Shr 86 cts vs 62 cts Shr diluted 86 cts vs 59 cts Net 28.0 mln vs 18.3 mln Revs 513.5 mln vs 517.0 mln First half Shr 2.03 dlrs vs 1.78 dlrs Shr diluted 2.03 dlrs vs 1.61 dlrs Net 65.9 mln vs 50.0 mln Revs 1.11 billion vs 1.08 billion Avg shrs 32.4 mln vs 28.1 mln Avg shrs diluted 32.4 mln vs 32.4 mln NOTE: 1987 net includes gains of 645,000 dlrs, or two cts a share, in quarter and 12,290,000 dlrs, or four cts a share, from reduced pension expense under new accounting procedures Net in both 1987 periods also includes gain of 4.0 mln dlrs, or 12 cts a share, from sale of land in Alabama.  
WISCONSIN POWER AND LIGHT CO <WPL>VOTES PAYOUT. Qtly div 76 cts vs 76 cts prior qtr Pay 15 May Record 30 April  
GOODMARK FOODS INC <GDMK> 2ND QTR FEB 22 NET. Shr 19 cts vs 18 cts Net 835,000 vs 794,000 Sales 23.9 mln vs 20.5 mln Nine mths Shr 47 cts vs 91 cts Net 2,104,000 vs 3,489,000 Sales 74.5 mln vs 65.2 mln Avg shrs 4,450,675 vs 3,822,894  
COUNTRYWIDE CREDIT INDUSTRIES INC <CCR> 4TH QTR. Feb 28 end Shr 44 cts vs 16 cts Shr diluted 37 cts vs 16 cts Net 5,378,000 vs 1,987,000 Revs 26.8 mln vs 14.6 mln Avg shrs 12.4 mln vs 12.1 mln Shr 1.26 dlrs vs 45 cts Shr diluted 1.10 dlrs vs 45 cts Net 15.5 mln vs 5,401,000 Revs 80.3 mln vs 46.4 mln NOTE: Share adjusted for stock dividends declared through today.  
COUNTRYWIDE CREDIT <CCR> SETS HIGHER DIVIDEND. Countrywide Credit Industries Inc said its board declared an eight ct per share quarterly dividend, up from seven cts last quarter, and a two pct stock dividend. The cash dividend is payable April 14 to holders of record March 30 and the stock dividend is payable April 17 to holders of record March 31.  
EXCEL INDUSTRIES INC <EXC> BOOSTS DIVIDEND. Qtly div nine cts vs eight cts prior qtr Pay 20 April Record 3 April  
BAKER, FENTRESS AND CO <BKFR> VOTES DIVIDEND. Qtly div 25 cts vs 25 cts prior qtr Payable 10 June Record 15 May  
PILLSBURY <PSY> HURT BY RESTAURANT OPERATIONS. Pillsbury Corp, reporting lower earnings for the third quarter ended February 28, said a strong performance by its Foods Group was offset by Restaurants Group declines. Excluding unusual items, it said restaurants operating profit was down in the quarter 12 pct from a year ago as sales rose four pct. It said Burger King USA and Bennigan's reported higher operating profit, but profits fell sharply at Steak and Ale, which introduced a new menu. Pillsbury also reported lower profits at Distron, Burger King's distribution arm, and said increased investment spending on developing concepts - QuikWok, Bay Street and Key West Grill - hurt results. It said Foods operating profit, excluding unusual items, rose 10 pct with international operations and domestic breads and baking products major contributors to improvement in the quarter. A turnaround in grain merchandising was a major factor in profit improvement for the nine months, Pillsbury said. Pillsbury said corporate expense showed a 4.3 mln dlr profit in the quarter reflecting a 10.5 mln dlr gain on the sale of a joint interest in an Australian food company and lower corporate expenses, largely as a result of an early retirement program initiated a year ago. Earlier, Pillsbury reported fourth quarter earnings of 48.5 mln dlrs, or 56 cts a share, down from 55.4 mln dlrs, or 63 cts a share a year ago. Sales advanced to 1.53 billion dlrs from 1.46 billion dlrs. Pillsbury said loss of investment tax credits under the 1986 Federal Tax Reform Act reduced per-share earnings by nine cts in the quarter and 19 cts in the nine months. As a result of the act, it said its effective income tax rate rose eight points to 48.1 pct in the quarter and 5.5 percentage points to 49.7 pct for the nine months.  
AGENCY RENT-A-CAR INC <AGNC> 4TH QTR JAN 31 NET. Shr 26 cts vs 21 cts Net 5,553,000 vs 4,307,000 Revs 45.1 mln vs 34.2 mln Year Shr 86 cts vs 67 cts Net 18.2 mln vs 14.0 mln Revs 161.1 mln vs 118.3 mln NOTE: Share adjusted for stock dividends.  
AGENCY RENT-A-CAR <AGNC> SETS STOCK DIVIDEND. Agency Rent-A-Car Inc said its board declared a five pct stock dividend, payable May 22 to holders of record on May 8. The company also said it plans to increase the size of its rental fleet in the year ending January 31 by 20 to 25 pct and expand its rental office network.  
(CORRECTED) - FEDERAL PAPER BOARD CO <FBO> PAYOUT. Qtly div 17.5 cts vs 17.5 cts in prior qtr Payable April 15 Record March 31 (Company corrects amount of previous payment in MARCH 18 item to show there was no change)  
SAND TECHNOLOGY SYSTEMS <SNDCF> 2ND QTR NET. ended January 31 Shr nil vs nil Net profit 351,000 vs loss 243,000 Sales 7,050,000 vs 7,012,000 Avg shrs 106,780,000 vs 93,666,000 Six mths Shr loss one ct vs loss one ct Net loss 999,000 vs loss 563,000 Sales 10.6 mln vs 13.0 mln Avg shrs 106,641,000 vs 92,986,000  
RYAN'S FAMILY STEAK HOUSE <RYAN> SETS SPLIT. Ryan's Family Steak Houses Inc said its board declared a three-for-one stock split, payable May 20 to holders of record May 6. The company said the split is subject to shareholder approval of an increase in authorized shares to 100 mln from 20 mln at the April 22 annual meeting.  
INERTIA DYNAMICS <TRIM> TO PAY STOCK DIVIDEND. Inertia Dynamics Corp said it declared a 50 pct stock dividend, payable May 1 to shareholders of record April 3.  
CSP INC <CSPI> 2ND QTR FEB 28 NET. Shr one ct vs 21 cts Net 24,000 vs 612,000 Sales 2,061,000 vs 3,914,000 1st half Shr eight cts vs 43 cts Net 223,000 vs 1,220,000 Sales 4,584,000 vs 7,912,000  
PUBLISHERS EQUIPMENT CORP <PECN> YEAR NET. Shr profit eight cts vs loss 23 cts Net profit 251,000 vs loss 731,000 Revs 29.1 mln vs 25.9 mln Backlog 18.9 mln vs 12.5 mln  
CAVALIER HOMES INC <CAVH> 4TH QTR NET. Shr 10 cts vs 14 cts Net 191,465 vs 193,799 Sales 7,160,945 vs 6,576,670 Avg shrs 2,000,565 vs 1,400,000 Year Oper shr 33 cts vs 50 cts Oper net 605,725 vs 694,785 Sales 23.3 mln vs 22.1 mln Avg shrs 1,840,692 vs 1,400,000 NOTE: 1985 year net excludes 30,000 dlr tax credit.  
COLONIAL COMMERCIAL CORP <CCOM> 4TH QTR NET. Shr not given Oper net profit 405,914 vs loss 145,380 Revs 2,446,901 vs 1,295,187 Year Shr not given Oper net profit 1,211,465 vs loss 178,101 Revs 9,085,222 vs 4,995,735 NOTE: Earnings from 1983 on benefit preferred shareholders until preferred shareholders' equity equals or exceeds liquidating and mandatory redemption values.  
DOMTAR SETS TWO-FOR-ONE STOCK SPLIT TO TAKE EFFECT MAY 14.  DOMTAR SETS TWO-FOR-ONE STOCK SPLIT TO TAKE EFFECT MAY 14  
PUBLIC SERVICE CO OF N.H.<PNH> OMITS DIVIDEND. Public Service Co of New Hampshire said its board voted to omit the quarterly dividend which would have been paid on May 15. The company said the omission is the thirteenth consecutive dividend omission.  
REXNORD INC <REX> 1ST QTR JAN  31 LOSS. Shr loss 76 cts vs profit 50 cts Net loss 19,186,000 vs profit 12,438,000 Sales 157.9 mln vs 149.2 mln NOTE: Fiscal 1987 net loss includes a pretax charge of 19.5 mln dlrs from restructuring and an after tax charge of about seven mln dlrs from debt prepayment premiums. Fiscal 1986 net profit includes a pretax gain of 7.2 mln dlrs on the sale of some land, an after tax loss 1.35 mln dlrs from discontinued operations and an after tax gain of 6.7 mln dlrs from a change in accounting. All results restated to exclude five businesses divested as part of the company's restructuring program.  
CARSON <CRN> CITES IMPACT OF TAX REFORM ACT. Carson Pirie Scott and Co said the Tax Reform Act of 1986, which repealed investment tax credits, had a negative impact of 22 cts a share on earnings for the year ended January 31. Earlier, Carson reported yearly per-share earnings of 1.83 dlrs, down from 1.86 dlrs a year ago. Average shares increased to 10.2 mln from 9.9 mln a year earlier. Sales gained to 1.41 billion dlrs from 1.30 billion dlrs. Carson said it was "extremely optimistic about improved profit performance in 1987." It said in the first half of 1987 it hopes to reduce seasonal-type losses sustained in the 1986 first and second quarters. The company said that in early April its Oak Brook Hills Hotel and Conference Center in suburban Chicago will open under its management. Provisions for startup expenses have been made, it added.  
DOMTAR PLANS TWO-FOR-ONE STOCK SPLIT. <Domtar Inc> said it plans a two-for-one stock split to take effect May 14. The company said shareholders will be asked to approve the split at the annual meeting on April 29. Domtar said its directors believe the split could favorably affect marketability of the shares and encourage wider distribution. The shares have been trading recently in a range of 45 dlrs. Domtar stock was previously split on a two-for-one basis in June, 1985.  
RIVERSIDE GROUP INC <RSGI> 4TH QTR. Shr 55 cts vs 93 cts Net 1.6 mln vs 2.6 mln Revs 5.3 mln vs 1.2 mln Year Shr 73 cts vs 1.36 dlrs Net 2.0 mln vs 3.0 mln Revs 9.1 mln vs 11.0 mln NOTE:1985 net includes 2.7 mln dlrs gain on disposal of unit. 1986 includes operations of Dependable Insurance Gruop Inc.  
<I.T.L. INDUSTRIES LTD> 1ST QTR FEB 28 NET. Oper shr loss two cts vs profit three cts Oper net profit 301,000 dlrs vs profit 130,000 Revs 10.5 mln vs eight mln NOTE: Dividends on preferred shares 370,000 dlrs vs 51,000 dlrs. Oper net excludes gains on tax loss carryforward of 247,000 dlrs vs 118,000 dlrs.  
TULTEX <TTX> INCREASES DIVIDEND. Qtly div nine cts vs eight cts prior Payable July one Record June 12  
TULTEX CORP <TTX> 1ST QTR FEB 28. Shr 23 cts vs 28 cts Net 4.3 mln vs 5.1 mln Revs 64.5 mln vs 67.1 mln NOTE:1986 reflects two for one stock split, effective July 31  
FEDERATED FIN'L SAVINGS <FEDF> INITIAL PAYOUT. Federated Financial Savings said it declared an initial quarterly dividend of 85 cts a share April 27, record April 13. This is the first dividend paid by Federated since its conversion to a stock company from a mutual on Jan 28, 1987.  
<BURKE-PARSONS-BOWLBY> CORP SETS REGULAR PAYOUT. Qtrly div three cts vs three cts prior Pay May 15 Record April 24  
SEAGRAM CO LTD YEAR SHR 4.45 DLRS VS 3.44 DLRS.  SEAGRAM CO LTD YEAR SHR 4.45 DLRS VS 3.44 DLRS  
L'AIR LIQUIDE <AIRP.PA> YEAR ENDED DEC 31. Parent company net profit 754.45 mln francs vs 674.1 mln. Dividend 19.50 francs vs same. NOTE - Company said the dividend would apply to shares issued under capital increases during 1986. This means a 32 pct rise in total dividend payments to 528.14 mln francs on 1986 results from 399.62 mln the previous year.  
MODULAIRE INDUSTRIES <MODX> 4TH QTR LOSS. Shr loss 12 cts vs profit 37 cts Net loss 350,738 vs profit 1,095,991 Revs 18.8 mln vs 15.8 mln Year Shr profit 28 cts vs profit 1.29 dlrs Net profit 831,901 vs profit 3,000,716 Revs 60.6 mln vs 48.2 mln Avg shrs 2,996,903 vs 2,756,596 Note: Per share date adjusted to reflect 10 pct stock dividend of March 1986.  
SEAGRAM CO LTD <VO> YEAR JAN 31 NET. Shr 4.45 dlrs vs 3.44 dlrs Shr diluted 4.30 dlrs vs 3.34 dlrs Net 423.5 mln vs 319.1 mln Sales 3.34 billion vs 2.97 billion Avg shrs 95.1 mln vs 92.6 mln NOTE: U.S. funds. Net includes equity in earnings of Du Pont Co <DD> of 169.1 mln dlrs vs 75.7 mln dlrs and dividend income from Du Pont shares of 154.1 mln dlrs vs 150.8 mln dlrs. Latest year net includes pretax charge 35.0 mln dlrs from sale of wine operations and reorganization of spirits operations in U.S. and related reduction in tax expense of 27.7 mln dlrs.  
AIR PRODUCTS AND CHEMICALS INC <APD> IN PAYOUT. Qtly div 20 cts vs 20 cts prior Pay May 11 Record April Three  
J.P. STEVENS AND CO <STN> IN PAYOUT. Qtly div 30 cts vs 30 cts prior Pay April 30 Record April Three  
<TIE/TELECOMMUNICATIONS CANADA LTD> 4TH QTR NET. Oper shr one ct vs six cts Oper net 48,000 vs 556,000 Revs 19.0 mln vs 26.5 mln Year Oper shr 19 cts vs 46 cts Oper net 1,586,000 vs 3,971,000 Revs 90.8 mln vs 103.1 mln NOTE: Previous oper net excludes 404,000 dlrs of extraordinary expenses for qtr and 991,000 dlr gain for year. TIE/communications Inc <TIE> holds 65 pct interest.  
PEOPLES SAVINGS BANK <PEBW> RAISES QUARTERLY. Qtly div 12 cts vs 10 cts prior Pay April 24 Record April One  
DEP CORP DEPC 2ND QTR JAN 31 NET. Shr three cts vs 16 cts Net 127,000 vs 605,000 Sales 14.4 mln vs 9,726,000 Six Mths Shr 17 cts vs 30 cts Net 678,000 vs 1,141,000 Sales 24.6 mln vs 19.2 mln  
FEDERAL SIGNAL CORP <FSS>  REGULAR DIVIDEND. Qtly div 20 cts vs 20 cts previously Pay June Two Record May 12  
STATE STREET BOSTON CORP <STBK> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April 15 Record April One  
MARSH AND MCLENNAN COS INC <MMC> SETS QUARTERLY. Qtly div 47-1/2 cts vs 47-1/2 cts prior Pay May 13 Record April Six  
JOHN WILEY AND SONS INC <WILLB> SETS QUARTERLY. Qtly div Class A 27-1/2 cts vs 27-1/2 cts Qtly div Class B 24-1/2 cts vs 24-1/2 cts Pay April 10 Record April Three  
FIRST FEDERAL SAVINGS BANK OF MONTANA <FFSM> DIV. Qtly div seven cts vs seven cts prior Payable April 28 Record April three  
<CCR VIDEO CORP> 1ST HALF FEB 28 NET. Shr profit 10 cts vs loss one ct Net profit 647,390 vs loss 75,967 Sales 2,120,027 vs 1,666,908 NOTE: Current year net includes 456,004 dlr gain from debt extinguishment.  
EXCEL BANCORP <XCEL> SETS INITIAL DIVIDEND. Excel Bancorp Inc said its board declared an initial dividend of 10 cts per share, payable April 20 to holders of record on April Six.  
HARRIS-TEETER PROPERTIES INC <HTP> SETS PAYOUT. Qtly div 24 cts vs 24 cts prior Pay May Eight Record April 17  
DRESSER INDUSTRIES <DI> SEES RETURN TO PROFIT. Dresser Industries Inc said it expects the joint ventures it has entered into and a gradual improvement in the energy market to allow it to regain profitability before the end of the current year. Dresser earned 9,600,000 dlrs for the year ended October 31 -- after a 95.0 mln dlr gain from a change in accounting and pension plan curtailment and a 25.3 mln dlr writedown of oilfield assets.  
NYNEX INCREASES QTRLY DIV TO 95 CTS FROM 87 CTS end of body.  NYNEX INCREASES QTRLY DIV TO 95 CTS FROM 87 CTS end of body  
BURNUP AND SIMS INC <BSIM> 3RD QTR JAN 31 NET. Shr profit five cts vs loss 40 cts Net profit 669,000 vs loss 4,256,000 Revs 46.1 mln vs 43.8 mln Avg shrs 13.9 mln vs 10.5 mln Nine mths Shr profit 42 cts vs loss 23 cts Net profit 5,529,000 vs loss 2,219,000 Revs 152.2 mln vs 139.6 mln Avg shrs 13.3 mln vs 9,489,000 NOTE: Current year net both periods includes 1,800,000 dlr gain from sale of property.  
AARON BROTHERS ART MARTS INC <AARN> 4TH QTR NET. Qtr ended Jan 31 Shr 48 cts vs 38 cts Net 1,171,000 vs 794,000 Revs 15.6 mln vs 14.0 mln Year Shr 85 cts vs eight cts Net 1,831,000 vs 266,000 Revs 50.4 mln vs 46.5 mln  
QUAKER STATE <KSF> ARRANGES 100 MLN DLR CREDIT. Quaker State Oil Refining Corp said it signed a 100 mln dlr revolving credit and term loan agreement with a group of six banks, for which Mellon Bank N.A. is agent. The four-year arrangement has an additional four-year term loan amortization agreement, Quaker said. Quaker said the credit line will be used to finance expansion plans. Quaker's total capital spending program for 1987 is expected to exceed 125 mln dlrs, it said. In 1986, the company's capital spending totaled 71.0 mln dlrs. Quaker also said costs of new store openings and new product introductions will depress earnings in the first half. For the first half of 1986, Quaker reported net income of 26.0 mln dlrs on sales of 473.5 mln dlrs. In the first two months, Quaker opened about 25 new stores. It said it expects to add 150 Minit-Lube fast lubrication service centers in 1987 at a cost of 75 mln dlrs. The company said it is optimistic it will recover in the second half and report higher earnings for full year fiscal 1987. The company reported net income of 50.3 mln dlrs on sales of 899.1 mln dlrs for 1986.  
KMS INDUSTRIES INC <KMSI> YEAR NET. Oper shr three cts vs three cts Oper net 511,000 vs 550,000 Revs 19.7 mln vs 17.7 mln Avg shrs 15,777,000 vs 16,074,000 NOTE: Earnings exclude gains from utilization of tax loss caryforwards of 398,000 dlrs, or three cts a share vs 455,000 dlrs, or three cts a share  
WICKES COS INC 4TH QTR SHR LOSS TWO CTS VS PROFIT 14 CTS.  WICKES COS INC 4TH QTR SHR LOSS TWO CTS VS PROFIT 14 CTS  
TO-FITNESS <TFIT> IN DISTRIBUTION DEAL. To-Fitness Inc said it has been named exclusive Florida distributor for the hardpack version of the frozen dessert Tofutti by Tofutti Brands Inc <TOF>, replacing Pillsbury Co's <PSY> Haagen Dazs.  
ALLIANCE FINANCIAL CORP <ALFL> DIVIDEND SET. Qtly div 22 cts vs 22 cts previously Pay April 15 Record March 31  
NYNEX <NYN> INCREASES QTRLY CASH DIVIDEND. Nynex Corp said it is raising its quarterly dividend to 95 cts from 87 cts payable May 1, 1987, to shareholders of record March 31. The company said this was the third consecutive year it has raised its quarterly cash dividend. It added it had a two-for-one stock split in May 1986.  
ALDEN ELECTRONICS <ADNEA> SETS LOWER DIVIDEND. Alden Electronics Inc said its board declared an annual dividend of 15 cts per share on Class A and B common stock, down from 25 cts last year due to an expected drop in earnings for the year ended March 28. The dividend is payable April 15 to holders of record on April 3. Alden earned 1,357,000 dlrs last year.  
WICKES COS INC <WIX> 4TH QTR LOSS. Shr loss two cts vs profit 14 cts Net loss 2,515,000 vs profit 28,569,000 Sales 1.41 billion vs 885.2 mln Avg shrs 239.2 mln vs 104.4 mln Year Shr profit 33 cts vs profit 47 cts Net profit 83,750,000 vs profit 76,130,000 Sales 4.77 billion vs 2.81 billion Avg shrs 198.8 mln vs 98.3 mln Note: Current qtr and year figures include gains on securities sales of 3.9 mln dlrs and 38 mln dlrs, respectively. Prior qtr and year figures include gain on securities sales of 3.9 mln dlrs. Current qtr and year figures include extraordinary loss of 6.9 mn dlrs and gain of 9.9 mln dlrs, respectively. Prior qtr and year figures include operating loss carryforward gains of 7.6 mln dlrs and 35.5 mln dlrs, respectively. Prior qtr and year figures include gains from discontinued operations of 6.6 mln dlrs and 12.6 mln dlrs, respectively.  
SCOTT <SCOT> DECLARES FIRST PAYOUT. Scott and Stringfellow Financial Inc said it declared its first quarterly dividend of three cents per share payable April 15 to shareholders of record April one.  
TEXAS COMMERCE <TCB> SEES IMPROVEMENT IN 1987. Texas Commerce Bancshares Inc said that relatively stable oil prices and the bank's planned merger with Chemical New York Corp <CHL> would help 1987 earnings increase from last year's profits of 20 mln dlrs. Texas Commerce chairman Ben Love, in an interview with Reuters, did not elaborate on how much the bank expected earnings to increase. "We would anticipate that this year would be an improvement over last because we are stronger," Love said, referring to Texas Commerce's pending 1.19 billion dlr merger with Chemical. The merger, which may be finalized as early as May 1, will lower Texas Commerce's cost of funding by an estimated 10 to 15 basis points, Love said. The Texas Commerce-Chemical merger is the only acquisition by a major out-of-state bank since Texas lawmakers approved interstate banking effective January 1. Hard-hit by loan losses in energy and real estate in Texas' struggling economy, the only major Texas banks able to report profits in 1986 were Texas Commerce and RepublicBank which earned 54.0 mln dlrs. Allied Bancshares Inc <ALBN> lost 17.6 mln dlrs, MCorp <M> lost 82.1 mln dlrs, InterFirst lost 326.5 mln dlrs and First City Bancorporation <FBT>, which is actively seeking a merger or other form of new capital, lost 402.0 mln dlrs. Love said Texas Commerce had turned the corner on its energy loan portfolio problems, but added that the bank's nonperforming real estate loans may increase during 1987. "I think the tidal wave in energy has passed over us," he said. "The fact that the real estate market is still moving away suggests there could be some continuing growth of nonperforming loans." In 1986, about 42 pct of Texas Commerce's net loan losses related to real estate lending and 13 pct was due to energy loan losses. That compares to 1985 when only 17 pct of the bank's losses were in real estate and energy accounted for 43 pct. More than half of Texas Commerce's nonperforming loans, which totaled 968 mln dlrs at yearend 1986, up from 840 mln dlrs the year before, were in real estate. Love said he believed the real estate loan problems for Texas Commerce and other major state banks would peak by the third or fourth quarter of 1987. Absorption of empty office buildings in Houston, which has a current vacancy rate of about 30 pct, will be a gradual process that could take up to four years, he said. "I think we may be beginning to stabilize this economy. Oil at 18 dlrs a barrel brings much more confidence than 10 dlrs a barrel," he said. Texas Commerce will retain its name as a separate subsidiary of Chemical and plans to aggressively expand its holdings throughout Texas, offering additional products to build up its consumer banking business, Love said. "We are resuming what we did best for years -- an offensive position," he said. In January, Texas Commerce acquired a failed bank in Montgomery County, adjacent to the Houston metropolitan area, and earlier this month opened a new bank in San Antonio. Texas Commerce plans to add more banks in San Antonio and in the Dallas-Fort Worth area where it currently has only 16 member banks, he said. One day after the Texas Commerce acquisition was announced in December, InterFirst Corp <IFC> and RepublicBank Corp <RPT>, both headquartered in Dallas, agreed to merge in a deal valued at 570 mln dlrs. The combination of former archrivals RepublicBank and InterFirst, giving the two banks a virtual lock on the Dallas banking market, has not changed Texas Commerce's expansion plans for the state's second-largest city, Love said. "We think we can try to get a little part of their roost," he said. The Chemical partnership will also give Texas Commerce an edge in developing new consumer products, he said. "We have always been a wholesale bank but we have more than one million customers all over the state. Chemical will show us how to take advantage of enhancing our consumer products," he said, referring to expansion of such existing products as credit cards and investment banking.  
BROWN TRANSPORT <BTCI> SEES RECORD 1987 NET. Brown Transport Co said it expects to report record 1987 results with revenues increasing to 214 mln dlrs and earnings per share between 1.25 dlrs and 1.30 dlrs. Brown reported 1986 net income of 1.05 dlrs per share, or 5.45 mln dlrs, on revenues of 191.7 mln dlrs. Last week the company declared an initial quarterly dividend of four cts. the company said it will begin paying a regular quarterly dividend in the second quarter but the board has not yet determined the exact amount.  
BOMBAY <CURY> BASES GROWTH ON LOCATION, COSTS. Bombay Palace Restaurants Inc, with its emphasis on location and low food costs, expects its 1987 sales to increase 150 pct to about 22 mln dlrs from about 8.5 mln dlrs in 1986, according to President Sant S. Chatwal. Chatwal told members of the Dallas financial community at a lunchtime briefing, "we go for prime locations everywhere and make sure our leases are very favorable." As previously announced, the company expects to report 1986 earnings of about 700,000 dlrs, or 31 to 33 cts a share, on revenues of 8.5 mln dlrs. Chatwal said the final figures would be released in about two days.  
AMERITRUST <AMTR> PROPOSES 2-FOR-1 STOCK SPLIT. AmeriTrust Corp said its board proposed a two-for-one split of its common, subject to stockholder approval at its May 14 annumal meeting. The company also said it intends to recommend an increase in its annual regular dividend to at least two dlrs per share before the split, beginning with the May dividend. The current annual payout is 1.76 dlr per share. AmeriTrust currently has about 20.9 mln shares outstanding with 25 mln authorized shares. It said shareholders will be asked to approve an increase in authorized common to 100 mln shares. Ameritrust also said it will submit for shareholder approval an amendment to the company's charter regarding liability and indemnification of directors and a recommendation to create a classified board. AmeriTrust's total year-end assets were over 11.1 billion dlrs.  
FIRST FEDERAL OF MICHIGAN <FFOM> DIVIDEND HIKE. Qtly div 12 cts vs 10 cts previously Pay May 11 Record April 10  
HELDOR INDUSTRIES <HLDR> 1ST QTR LOSS. Qtr ends Jan 31 Shr loss 38 cts vs loss 60 cts Net loss 1,388,000 vs 2,181,000 Revs 8,199,000 vs 6,668,000 NOTE: 1987 qtr includes tax gain 964,000 for insurance claims. 1987 qtr also includes non-recurring expense 150,000 for discontinued operations and consolidation of four distribution service centers.  
PENSION INSURANCE GROUP <PGAI> 4TH QTR NET. Shr profit two cts vs profit two cts Net profit 216,000 vs profit 265,000 Revs 1,661,000 vs 1,376,000 12 mths Shr profit four cts vs loss two cts Net profit 528,000 vs loss 290,000 Revs 5,881,000 vs 5,541,000 NOTE: full name of company is pension insurance group of america inc.  
SEA CONTAINERS LTD <SCR> 4TH QTR LOSS. Shr loss 4.95 dlrs vs loss 75 cts Net loss 48.2 mln vs loss 4,644,000 Revs 133.4 mln vs 135.6 mln 12 mths Shr loss 6.28 dlrs vs profit 2.48 dlrs Net loss 67.6 mln vs profit 25.7 mln Revs 638.9 mln vs 573.1 mln Avg shrs 10,771,260 vs 10,355,728  
<ROYAL GOLD AND SILVER CORP> 1ST QTR NET. ended January 31 Shr profit two cts vs loss one ct Net profit 130,000 vs loss 46,000 Sales 5,042,000 vs nil Note: 1987 includes gain of 112,000 dlrs from sale.  
JP STEVENS AND CO INC <STN> SETS PAYOUT. Qtrly div 30 cts vs 30 cts prior Pay April 30 Record April 3  
QUEBEC CAISSE EARNS THREE BILLION DLRS IN 1986. Caisse de depot et placement du Quebec, the government agency which manages the province's pension funds, said its investment portfolio earned a net profit of almost three billion Canadian dlrs in 1986, an increase of 300 mln dlrs over 1985. The agency said in its annual statement that it had assets with a total book value of 25 billion dlrs, or a market value of 28 billion dlrs, at the end of 1986. These holdings had a rate of return of 13.5 pct in the year, which was below the Caisse's average return of 16 pct in the past four years and 14.2 pct in the past eight years. The Caisse said foreign equity investments represented 3.6 pct of total assets, while U.S. government securities accounted for another 5.2 pct of the overall portfolio. The agency's holding of U.S. government securities yielded a return of 20.7 pct for the year, significantly more than either the 14.1 pct earned on the total bond portfolio or the 13.5 pct for all funds under management. "These high liquidity securities, which are held on a temporary basis and for purposes of strategy and the protection of the overall bond portfolio, have been efficient," the agency said of the U.S. securities. The agency said it has 7.9 billion dlrs invested in Canadian private sector businesses after channeling 965 mln dlrs of new funds into this area in 1986. The Caisse said it acquired 825 mln of new Government of Quebec bonds and 342 mln dlrs of new securities from other Quebec government issuers during the year.  
ASEA GROUP <ASEAY> SEES FLAT 1987 EARNINGS. Asea Group, the diversified industrial concern based in Vasteras, Sweden, said it expects 1987 earnings, after financial income and expense, to be flat compared with 1986, when it earned 2.53 billion Swedish crowns, or 371.1 mln dlrs. A company spokesman said 1986 results were boosted significantly by the booking of two large orders for nuclear power plants. This gain, he said, will be balanced in 1987 by a return to profitability by Asea's power transmission segment, which had a loss of 183 mln crowns, or 26.9 mln dlrs, last year. Currency conversions were made at 6.81 crowns to the dlr. The spokesman said the company has built up a strong backlog of orders that will contribute to earnings in 1988 and beyond. At yearend 1986, Asea's order backlog stood at 32.7 billion crowns, or 4.8 billion dlrs, up from 30.9 billion, or 4.5 billion dlrs, at the end of 1985. Asea has operations in power generation and transmission, transportation equipment, pollution control and robotics. Total sales in 1986 were 46 billion crowns, or 6.8 billion dlrs.  
BUTLER NATIONAL CORP <BUTL> 3RD QTR JAN 31. Shr profit nil vs loss one ct Net profit 1,136 vs loss 42,840 Revs 1,490,718 vs 1,151,176 Nine mths Shr profit three cts vs profit five cts Net profit 89,900 vs profit 150,523 Revs 4,520,393 vs 4,078,441  
ART'S-WAY MANUFACTURING CO <ARTW> 3RD QTR NET. Shr profit 58 cts vs loss 11 cts Net profit 726,000 vs loss 145,000 Sales 4,958,000 vs 2,783,000 Nine Mths Shr profit 1.08 dlrs vs loss 80 cts Net profit 1,359,000 vs loss 1,013,000 Sales 12.6 mln vs 7,145,000 NOTE: Fiscal 1987 net profit includes tax credits of 372,000 dlrs in the quarter and 643,000 dlrs in the nine months. Periods end February 28, 1987 and 1986, respectively. Art's-Way Manufacturing Co Inc is full name of company.  
PSE INC <POW> 4TH QTR. Shr loss 18 cts vs profit 11 cts Net loss 1.5 mln vs profit 868,000 Revs 29.3 mln vs 41.1 mln Year Shr loss 41 cts vs profit five cts Net loss 3.1 mln vs profit 409,000 Revs 99.2 mln vs 231.7 mln  
<WARDAIR INTERNATIONAL LTD> YEAR NET. Shr 12.84 dlrs vs 3.07 dlrs Net 46,054,000 vs 11,026,000 Revs 491.1 mln vs 473.9 mln NOTE: Current net includes gain of 8.51 dlrs a share on disposal of assets. M.W. Ward holds 62 pct voting interest.  
SEA CONTAINERS <SCR> EXPECTS BETTER FIRST QTR. Sea Containers Ltd predicted its first quarter fiscal 1987 net earnings would improve by 10 mln dlrs over the same period a year ago. The company said 1987 got off on a much better footing than fiscal 1986, from which the company recorded a loss of 67.6 mln dlrs, or 6.28 dlrs per share, on revenues of 641.4 mln dlrs. James Sherwood, president of the company, said he expects to record a loss of approximately 12 mln dlrs for the first quarter, compared to losses of approximately 22 mln dlrs for first quarter fiscal 1986. The company emphasized the first quarter is a traditionally slow period for the ferry industry, which is  part of Sea Containers' business. Sherwoood said the company's losses were largely attributable to non-recurring events and provisions. He cited the default of 15 container leasees and ship charterers, costing the company approximately 25 mln dlrs. He also cited a 23 mln dlr cost as a result of a closing two of its subsidiary's ferry services, and a 10.3 mln dlr provision to cover losses on the sale of container assets and severance pay costs.  
FIRST INTERSTATE <I> ESTIMATES BRAZIL RISKS. First Interstate Bancorp said its 1987 pre-tax income could be reduced by about 33.5 mln dlrs if it decides to reclassify its 339 mln dlrs in medium- to long-term loans to Brazil as nonperforming. But the company stressed in a filing with the Securities and Exchange Commission that it believes it is too soon to reclassify the debt, despite Brazil's Feb 20 suspension of direct interest payments on medium- and long-term loans. "The corporation believes that it is premature to make a decsion to classify such medium- and long-term debt as nonperforming at this time," First Interstate said. But First Interstate said that if Brazil's suspension of interest payments continues, it may have to reclassify its loans as nonperforming and place them on non-accrual, meaning that interest previously accrued but not paid would be deducted from net income and interest would no longer be accrued. Besides its medium- and long-term debt, First Interstate said it also has 165 mln dlrs in short-term loans or trade lines in Brazil. As of Dec 31, 1986, nonperforming Brazilian outstandings were about 4.1 mln dlrs, it said.  
AMERICAN HOME SHIELD CORP <AHSC> 4TH QTR NET. Shr profit 15 cts vs profit 15 cts Net profit 1,025,000 vs profit 969,000 Revs 10.9 mln vs 7.8 mln 12 mths Shr profit 33 cts vs loss one cts Net profit 2,375,000 vs profit 90,000 Revs 38.2 mln vs 20.3 mln NOTE: Revenues figure shows contract revenue, not gross contracts written. Fourth quarter and full year 1986 includes extraordinary gain of 501,000 dlrs and 1,040,000 dlrs, respectively, from tax loss carryforwards. Per share figures come after preferred dividend requirements.  
TRIANGLE HOME PRODUCTS INC <THP> 4TH QTR LOSS. Shr loss 17 cts vs loss 19 cts Net loss 213,000 vs loss 217,000 Sales 6,788,000 vs 6,254,000 Year Shr loss 22 cts vs loss five cts Net loss 270,000 vs loss 61,000 Sales 27.0 mln vs 27.0 mln  
FRANK B. HALL AND CO INC <FBH> 4TH QTR LOSS. Oper shr loss 30 cts vs loss 25 cts Oper net loss 2,138,000 vs loss 2,312,000 Revs 99.3 mln vs 89.4 mln Year Oper shr loss 40 cts vs profit 47 cts Oper net profit 4,294,000 vs profit 8,793,000 Revs 390.9 mln vs 360.5 mln NOTE: Excludes discontinued operations loss of 1.33 dlrs a share vs 5.35 dlrs a share in the quarter, and loss 1.52 dlrs a share vs loss 13.64 dlrs in the full year. Fourth quarter 1986 includes reserve of nine mln dlrs for operations company plans to sell. Per share figures come after preferred dividend requirements.  
WEISFIELD'S INC <WEIS> 4TH QTR NET. Shr 1.09 dlrs vs 1.20 dlrs Net 1,193,000 vs 1,361,000 Revs 18.7 mln vs 17.3 mln Year Shr 1.19 dlrs vs 1.52 dlrs Net 1,300,000 vs 1,831,000 Revs 50.6 mln vs 48.8 mln  
NORRIS OIL CO <NOIL> DEC 31 YEAR LOSS. Shr loss 1.55 dlrs vs loss 52 cts Net loss 13,191,000 vs loss 2,254,000 Revs 1,179,000 vs 2,003,000 Avg shrs 8,520,000 vs 4,330,000 Note: Current year loss includes 11.8 mln dlr writedown of oil and gas properties under full cost accounting method.  
NAPCO INTERNATIONAL <NPCO> 4TH QTR OPER NET. Oper shr 38 cts vs 5.62 dlrs Oper net 400,000 vs 6,173,000 Revs 1,195,000 vs 392,000 Year Oper shr 94 cts vs 5.65 dlrs Oper net 1,006,000 vs 6,257,000 Revs 2,432,000 vs 1,121,000 NOTE: 1986 operating net for the quarter and year excludes a loss on the disposal of certain businesses of 2.15 mln dlrs and a loss from discontinued operations of 297,000 dlrs in the quarter and 469,000 dlrs in the year. 1985 operating net for the quarter and year includes a pretax gain of nine mln dlrs from the sale of two divisions and a loss from discontinued operations of 2.85 mn dlrs in the quarter and 3.7 mln dlrs in the year. Napco International Inc is full name of company.  
NATIONAL BANCORP INC <NIBCA> YEAR END LOSS. Oper shr loss 1.02 dlr Oper loss 631,000 dlrs NOTE: Prior year results are not available as company completed its public offering in April 1986.  
<BACHELOR LAKE GOLD MINES INC> YEAR LOSS. Shr loss seven cts vs loss 19 cts Net loss 497,452 vs loss 1,306,875 Revs 10.6 mln vs 9.6 mln  
<SUMMIT RESOURCES LTD> YEAR NET. Shr not given Net 540,000 vs 1,890,000 Revs 4.9 mln vs 7.1 mln  
GOULDS PUMPS INC <GULD> SETS REGULAR PAYOUT. Qtly div 19 cts vs 19 cts prior Pay April 15 Record April three  
<SIGMA MINES (QUEBEC) LTD> 4TH QTR NET. Shr 17 cts vs five cts Net 1,442,000 vs 393,000 Revs 9,771,000 vs 8,052,000 Year Shr 74 cts vs 23 cts Net 6,076,000 vs 1,875,000 Revs 34.9 mln vs 30.3 mln  
FRANK B. HALL <FBH> EARNINGS REPORT QUALIFIED. Frank B. Hall and Co Inc said its independent accountants will issue a qualified report on its financial statements. The company said the opinion is the result of ongoing litigation over its discontinued operations. Earlier it said it lost 2.1 mln dlrs in the fourth quarter against a loss of 2.3 mln dlrs a year ago before discontinued operations. It also said it decided to sell its claims adjusting and admininistrative operations and its automobile dealer insurance unit, creating a reserve of about nine mln dlrs in the fourth quarter 1986 for the sale. The company said it will vigorously defend the litigation arising from the discontinued units. It also said it will concentrate on its direct brokerage and service business.  
ELECTRO SCIENTIFIC <ESIO> 3RD QTR FEB 28 LOSS. Shr loss 15 cts vs nil Net loss 877,000 vs profit 22,000 Sales 13.5 mln vs 18.0 mln Nine mths Shr loss 35 cts vs profit 20 cts Net loss 2,098,000 vs profit 1,184,000 Sales 43.5 mln vs 55.9 mln (Electro Scientific Industries)  
NRM ENERGY CO <NRM> SETS REGULAR PAYOUT. Qtly cash distribution five cts vs five cts prior Pay April 15 Record March 31  
MOTEL 6 LP <SIX> SETS CASH DISTRIBUTION. Qtly cash distribution 30.5 cts vs 18.4 cts prior Pay May 15 Record March 31 Note: Prior-quarter dividend was an initial payout based on operations for a partial fourth quarter in 1986.  
ULTRASYSTEMS INC <ULS> 4TH QTR NET. Shr 26 cts vs 18 cts Net 2,102,000 vs 1,415,000 Revs 44.1 mln vs 42.2 mln Year Shr 21 cts vs 91 cts Net 1,678,000 vs 7,105,000 Revs 155.1 mln vs 149.2 mln Note: Current year figures include 10.1 mln dlr writedown of costs and investments associated with ethanol refinery project.  
WESTERN TELE-COMMUNICATIONS <WTLCA> 4TH QTR NET. Oper shr 31 cts vs 34 cts Oper net 3,005,000 vs 2,835,000 Revs 13.1 mln vs 9,478,000 Year Oper shr 1.49 dlrs vs 1.15 dlrs Oper net 28.7 mln vs 16.9 mln Revs 47.8 mln vs 32.0 mln Note: Oper net excludes loss from discontinued operations of 726,000 dlrs vs gain of 737,000 dlrs for qtr and gain of 581,000 dlrs vs gain of 2,350,000 dlrs for year. Note: Full name is Western Tele-Communications Inc.  
SANTA FE ENERGY PARTNERS LP <SFP> QTLY PAYOUT. Qtly cash distribution 72 cts vs 72 cts prior Pay May 15 Record March 31  
MICROPRO INTERNATIONAL CORP <MPRO> 4TH QTR NET. Quarter ended Feb 28 Shr four cts vs seven cts Net 500,000 vs 900,000 Revs 9,200,000 vs 10,500,000 Year Shr four cts vs 12 cts Net 600,000 vs 1,500,000 Revs 17.6 mln vs 20.8 mln  
(EXPLOSIVE FABRICATORS INC) 1ST QTR JAN 31 NET. Net 41,724 vs 120,329 Revs 1,194,556 vs 1,504,702  
LASER <LSER> SEES IMPACT FROM SUIT ON EARNINGS. Laser Corp said that costs associated with its defense of two shareholder lawsuits could result in a net loss for 1987. Although Laser expects to post earnings from operations for the year, a spokesman said they might be wiped out by legal costs, depending on the length of litigation. In addition, the company said it will ask shareholders to approve proposals to merge the company into its main subsidiary, reincorporate in Delaware and change the company's name.  
PENSION INSURANCE GROUP <PGAI> 4TH QTR. Shr profit two cts vs profit two cts Net profit 216,000 vs 265,000 Revs 1.7 mln vs 1.4 mln Year Shr profit four cts vs loss two cts Net profit 528,000 vs loss 290,000 Revs 5.9 mln vs 5.5 mln NOTE:1986 net includes realized investment gains of 3,000 dlrs in year. 1985 4th qtr and year includes realized investment gains of 16,000 and 35,000 dlr respectively.  
TRANSAMERICA CORP <TA> QUARTERLY DIVIDEND. Qtly div 44 cts vs 44 cts Pay April 30 Record April 4  
SOUTHERN CALIFORNIA EDISON CO <SCE> QTLY DIV. Qtly div 57 cts vs 57 cts Pay April 30 Record April 3  
COMPREHENSIVE CARE CORP <CMPH> QUARTERLY DIV. Qtly div nine cts vs nine cts Pay May 21 Record May 1  
GREAT WESTERN SAVINGS BANK <GWSB> QUARTERLY DIV. Qtly div 12 cts vs 12 cts Pay April 8 Record April 1  
KOMATSU LTD <KOMT.T> YEAR 1986. Group shr 17.68 yen vs 26.49 Net 14.70 billion vs 21.92 billion Pretax 35.76 billion vs 48.85 billion Operating 32.88 billion vs 51.90 billion Sales 788.73 billion vs 796.24 billion NOTE - Company forecast for current year is group net 15.50 billion on sales of 800 billion.  
KIRIN BREWERY CO LTD <KNBW.T> YEAR TO JANUARY 31. Parent shr 37.12 yen vs 34.97 Div 9.50 yen vs 7.50 Net 33.34 billion vs 31.05 billion Current 79.30 billion vs 73.32 billion Operating 72.13 billion vs 65.53 billion Sales 1,222 billion vs 1,211 billion Outstanding shrs 897.96 mln vs 887.76 mln NOTE - 1986/87 dividend included two yen bonus dividend to mark 80th anniversary. Company forecast for current year is parent shr 37.86 yen, div 7.50 yen, net 34 billion, current 81 billion and sales 1,250 billion.  
STANDARD BANK UNABLE TO MAKE EARNINGS FORECAST. Standard Bank Investment Corp Ltd (SPRJ.J) chairman Henri de Villiers said he could not predict profits for the bank this year because of South Africa's continuing political unrest. De Villiers also warned in the annual report that "failing prompt and decisive political action, South Africa faces a future of violent deadlock between different racial and political groupings." He said South Africa's future economic prospects are "clouded by political and social issues and in the absence of evidence that these are being positively addressed I am unable to offer an earnings forecast for 1987." Standard Bank, 39 pct owned by Standard Chartered PLC <STCH.L>, London, previously reported that 1986 net income rose by 13.8 pct to 209.0 mln rand. The bank said its bad debt losses should begin to decline this year "although it may take some time before they return to accepted industry norms." The annual report showed that the bank's charge for bad and doubtful debts rose in 1986 to 187.6 mln rand from 162.1 mln rand in the prior year. The bank said net income of its Standard Bank of South Africa subsidiary declined 8.2 pct in 1986 to 112.3 mln rand in a difficult banking environment caused mainly by low credit demand.  
BERLINER BANK SUFFERS LOSSES ON STUTTGART LOANS. <Berliner Bank AG> has suffered losses of between 10 and 100 mln marks through credits granted by its Stuttgart branch by officials there exceeding their powers, a bank spokesman said in answer to queries. The spokesman declined to say exactly how large the losses were. Berliner Bank has suspended the three managers of its Stuttgart branch and is continuing an investigation into the case, in which state prosecutors are also participating. The fact that powers had been exceeded emerged in a routine check at the branch. The City of West Berlin owns 74 pct of Berliner Bank and the rest is held by small shareholders.  
MICRON TECHNOLOGY INC <DRAM> 2ND QTR MARCH FIVE. Shr loss 46 cts vs loss 51 cts Net loss 10.9 mln vs loss 9,782,818 Revs 20.1 mln vs 9,437,270 Avg shrs 23.5 mln vs 19.3 mln 1st half Shr loss 90 cts vs loss 1.11 dlrs Net loss 20.6 mln vs 21.4 mln Revs 38.9 mln vs 14.5 mln Avg shrs 22.8 mln vs 19.2 mln  
BIOSEARCH MEDICAL PRODUCTS INC <BPMI> 4TH QTR. Shr loss seven cts vs loss 23 cts Net loss 381,000 vs loss 1,071,000 Sales 4,531,000 vs 4,409,000 Year Shr loss 21 cts vs loss 98 cts Net loss 1,098,000 vs loss 4,658,000 Sales 17.8 mln vs 17.3 mln  
MOORE FINANCIAL GROUP INC <MFGI> SETS PAYOUT. Qtly div 30 cts vs 30 cts prior Pay April 16 Record April Three  
M.D.C. ASSET INVESTORS <MIR> IN INITIAL PAYOUT. M.D.C. Asset Investors Inc, which recently went public, said its board declared an initial quarterly dividend of 45 cts per share, payable April 15 to holders of record April One.  
(CORRECTED)-MICROPRO INTERNATIONAL CORP <MPRO> NET. 2nd qtr Shr four cts vs seven cts Net 500,000 vs 900,000 Revs 9,200,000 vs 10.5 mln 1st half Shr four cts vs 12 cts Net 600,000 vs 1,500,000 Revs 17.6 mln vs 20.8 mln NOTE: Period ended February 28. Company corrects period in March 19 item  
HOME SAVINGS DURHAM <HSLD> SETS STOCK DIVIDEND. Home Savings and Loan Association Inc of Durham, N.C., said its board declared a 20 pct stock dividend, payable April 28 to holders of record April Three.  
STANLEY INTERIORS <STHF> SAYS RESULTS REDUCED. Stanley Interiors Corp said its first quarter shipments and operating income were lower than expected due to snowstorms in January and February that forced the closing of some of its manufacturing facilities for up to six days. Stanley said, however, that any reduction in first quarter operating income will be offset by reduced interest expense and that first quarter net income will be about flat with first quarter 1986 net income of 14 cts a share, or 286,000 dlrs. Stanely also said the first quarter's sales losses would be made up by shipments in the second quarter.  
CRI INSURED MORTGAGE INVESTMENTS LP <CRM> PAYOUT. Mthly div 16-1/2 cts vs 16-1/2 cts prior Pay May 15 Record March 31  
INTERNATIONAL PAGURIAN HAS FIVE MONTH PROFIT. <International Pagurian Corp Ltd> said it had net profit of 3.3 mln dlrs or three cts a share for the period August 15 to December 31, 1986, based on 55.2 mln shares outstanding. Revenues for the full year ended December 31, 1986 were 5.5 mln dlrs and net assets at year end were 317.5 mln dlrs. The company did not disclose earnings for the 1986 period before August 15 or prior year results. A company spokesman said prior results were not comparable due to its August 15 issue of 30 mln common shares.  
COMPUSCAN INC <CSCN> 3RD QTR FEB 28 NET. Shr loss eight cts vs loss 20 cts Net loss 469,000 vs loss 1,104,000 Revs 3,093,000 vs 3,056,000 Nine mths Shr loss 19 cts vs loss 29 cts Net loss 1,098,000 vs 1,646,000 Revs 9,562,000 vs 12.2 mln  
NATIONAL PATENT DEVELOPMENT CORP <NPD> IN PAYOUT. Qtly div 2-1/2 cts vs 2-1/2 cts prior Pay May One Record April One  
THOMPSON MEDICAL CO INC <TM> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April 15 Record March 30  
METALLGESELLSCHAFT AG <METG.F>. Year to September 30, 1986 Domestic group net profit 69.9 mln marks vs 61.4 mln. Parent net profit 53.6 mln vs 43.8 mln. Dividend six marks vs same. Parent payment to disclosed reserves 20 mln vs 15 mln.  
PUBCO <PUBO> DECLARES DIVIDEND RIGHT. Pubco Corp said its board declared a dividend distribution of one common stock purchase right on each outstanding share of Pubco's common stock. It said each right will entitle shareholders to buy one share of common stock at an exercise price of three dlrs. The rights will be exercisable only if a person or group acquires 20 pct or more of Pubco's common stock or announces a tender which would result in ownership by a person or group of 20 pct or more of the common stock, the company said. Pubco said it will be entitled to redeem the rights at 0.1 cts per right at any time before a 20 pct position has been acquired and afterward in certain circumstances. It said the exercise price will be substantially reduced in the event of an acquisition of 25 pct or more of common stock. If Pubco is acquired in a merger or other transaction, each right will entitle its holder to purchase, at the right's then-current exercise price, a number of the acquiring company's common shares having a market value at that time of twice the right's exercise price, the company said. The dividend distribution will be made March 31, 1987, payable to shareholders of record on that date. The rights will expire ten years later on March 31, 1987, the company said. Pubco said the rights are not being distributed in response to any specific effort to change control of Pubco, and the board is not aware of any such effort.  
TECH DATA <TECD> SETS THREE FOR TWO SPLIT. Tech Data Corp said its board declared a three-for-two stock split, payable April 30 to holders of record April 1.  
RENT-A-CENTER <RENT> VOTES 3 FOR 2 SPLIT. Rent-A-Center Inc said its directors approved a three-for-two stock split payable April 20, record April 3.  
USACAFES <USF> SETS HIGHER DIVIDEND. USACafes LP said its board declared a quarterly dividend of 20 cts per unit -- its first since converting to a limited partnership. The company, as USACafes Inc, had paid a quarterly dividend of nine cts per share. It said the restructuring as a partnership has substantially increased the cash available for distribution to unitholders, as it had predicted.  
FREEPORT-MCMORAN OIL AND GAS <FMR> PAYOUT RISES. Mthly div 14.248 cts vs 4.912 cts prior Pay April 10 Record March 31  
SHELDAHL <SHEL> VOTES THREE-FOR-TWO STOCK SPLIT. Sheldahl Inc said its directors approved a three-for-two stock split, payable April 24, record April 3.  
RUSS TOGS INC <RTS> SETS QUARTERLY. Qtly div 19 cts vs 19 cts prior Pay April 15 Record April One  
MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION. The stock of McDonald's Corp rose sharply this morning after analyst Daniel Lee of Drexel Burnham Lambert Inc reiterated his recommendation of the stock, traders said. McDonald's, an operator of fast food restaurants, rose 1-5/8 to 77-3/8. "Comparable store sales are up 5.6 pct in 1986 vs 1985," Lee said, "and the stock is trading below the market multiple." He said "not many companies have a consistent 15 pct annual earnings growth rate, return on equity above 20 pct, but trade at less than the market multiple." Analyst Lee said "the introduction of a new line of salads this spring, at about the time we are all trying to squeeze into bathing suits, should boost sales." He also noted that "the average McDonald's does about 1.369 mln dlrs in revenues a year. That compares with 1.1 mln dlrs a year for the average Burger King and 800,000 dlrs a year for the average Wendy's." Since it cost about the same to build a single store for any one of these chains, he said, "McDonald's can well justify their expansion." Lee expects McDonald's to earn 4.40 dlrs a share in 1986 and 5.15 dlrs in 1988. Last year it earned 3.72 dlrs a share.  
ICN PHARMACEUTICAL INC <ICN> 1ST QTR FEB 28 NET. Oper shr 14 cts vs four cts Oper net 2,959,000 vs 1,103,000 Sales 22.5 mln vs 25.2 mln Note: oper data does not include extraordinary gains of 3,686,000 dlrs, or 17 cts per shr, in current quarter and 975,000 dlrs, or eight cts per shr, in year ago quarter from sales of certain marketable securities.  
AMERICAN FEDERAL COLORADO <AFSL> HALVES PAYOUT. American Federal Savings and Loan Association of Colorado said its board cut the quarterly dividend to 7-1/2 cts per share from 15 cts. The dividend is payable April 14 to holders of record March 31. The company said earnings will continue under pressure this year due to the weakness of the Colorado economy and a high level of nonearning assets.  
TEXAS UTILITIES CO <TXU> 12 MTHS FEB 28 NET. Shr 4.50 dlrs vs 4.30 dlrs Net 637.4 mln vs 588.5 mln Revs 3.95 billion vs 4.10 billion Avg shrs 141.7 mln vs 136.9 mln  
<GUARDIAN TRUSTCO INC> 4TH QTR NET. Shr 15 cts vs nine cts Net 528,000 vs 374,000 Revs not given Year Shr 1.25 dlrs vs 42 cts Net 2,853,000 vs 1,579,000 Revs 55.3 mln vs 46.8 mln Note: shr after preferred dividends  
VIRATECK INC <VIRA> 1ST QTR FEB 28 OPER LOSS. Oper shr loss 23 cts vs profit 16 cts Oper loss 1,868,000 vs profit 1,293,000 Revs 183,000 vs 3,400,000 Note: Oper data does not include year ago extraordinary gain of 750,000 dlrs, or nine cts per shr.  
PARKWAY CO <PKWY> SETS QUARTERLY. Qtly div 20 cts vs 20 cts prior Pay May 20 Record May Four  
PARISIAN INC <PASN> 4TH QTR JAN 31 NET. Shr 58 cts vs 57 cts Net 4,313,000 vs 3,824,000 Sales 72.8 mln vs 61.5 mln Avg shrs 7,492,000 vs 6,740,000 Year Shr 1.33 dlrs vs 1.23 dlrs Net 9,592,000 vs 8,257,000 Sales 226.4 mln vs 184.4 mln Avg shrs 7,228,000 vs 6,740,000  
SPI PHARMACEUTICALS INC <SPIP> 1ST QTR OPER NET. Qtr ended Feb 28 Oper shr 31 cts vs 14 cts Oper net 3,203,000 vs 1,357,000 Revs 13.0 mln vs 15.6 mln Note: Oper data does not include year ago extraordinary gain of 821,000 dlrs, or eight cts per shr.  
GUARDIAN TRUSTCO SEES MODEST 1987 OUTLOOK. <Guardian Trustco Inc>, earlier reporting a 198 pct increase in full year earnings per share, said the outlook for 1987 is more modest. The company said it has started a number of long-term growth projects which have a payback period exceeding one year. Guardian Trustco did not give a specific earnings forecast. The company earlier reported 1986 net profit rose to 2,853,000 dlrs or 1.25 dlrs a share, from year-earlier 1,579,000 dlrs or 42 cts a share.  
NESTLE 1986 NET 1.79 BILLION SWISS FRANCS VS 1.75 BILLION, DIV UNCHANGED 145 FRANCS.  NESTLE 1986 NET 1.79 BILLION SWISS FRANCS VS 1.75 BILLION, DIV UNCHANGED 145 FRANCS  
TEXAS INDUSTRIES INC <TXI> 3RD QTR FEB 28 NET. Shr loss 50 cts vs profit one ct Net loss 4,419,000 vs profit 276,000 Sales 126.8 mln vs 151.3 mln Nine mths Shr loss 42 cts vs profit 1.27 dlrs Net loss 3,160,000 vs profit 11.2 mln Sales 429.9 mln vs 477.5 mln NOTE: Current year net includes tax credits of 2,164,000 dlrs in quarter and 328,000 dlrs in nine mths.  
SUNSHINE MINING CO 4TH QTR SHR LOSS 64 CTS VS LOSS 57 CTS.  SUNSHINE MINING CO 4TH QTR SHR LOSS 64 CTS VS LOSS 57 CTS  
GRACO INC <GGG> VOTES QUARTERLY DIVIDEND. Qtly div 15 cts vs 15 cts prior qtr Pay 6 May Record 8 April  
SUNSHINE MINING CO <SSC> 4TH QTR LOSS. Shr loss 64 cts vs loss 57 cts Net loss 34.9 mln vs loss 22.1 mln Revs 31.5 mln vs 60.2 mln Avg shrs 60.1 mln vs 45.2 mln Year Shr loss 2.27 dlrs vs loss 1.66 dlrs Net loss 103.2 mln vs loss 57.6 mln Revs 129.8 mln vs 169.5 mln Avg shrs 51.2 mln vs 38.1 mln NOTE: Per share results after preferred dividend requirements of 3.3 mln dlrs vs 3.5 mln dlrs in quarter and 12.9 mln dlrs vs 5.7 mln dlrs in year 1986 4th qtr loss includes accruals, writedowns and non-recurring charges aggregating 13.9 mln dlrs including costs anticipated in 1987 for the reopening of the Sunshine Mine and a writedown of the capitalized costs at the Sixteen-to-One Mine by 4.2 mln dlrs 1986 year loss includes charges totaling 100 mln dlrs  
SCAT HOVERCRAFT INC <SCAT> YEAR LOSS. Shr loss not given Net loss 1,300,000 Sales 3,300,000 NOTE: Company incorporated in June 1985. Fourth quarter loss 895,000 dlrs.  
NESTLE SA <NESZ.Z> YEAR 1986. Div 145 Swiss francs per share and 29 francs per participation certificate (unchanged) Net 1.79 billion vs 1.75 billion Shr 526 vs 515 Turnover 38.05 billion vs 42.23 billion Addition to reserves 170 mln vs 95 mln.  
SOUTHEAST BANKING CORP <STB> SETS QUARTERLY. Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30  
BALANCE COMPUTER CORP 3RD QTR JAN 31 LOSS. Shr loss one ct vs profit five cts Net loss 34,496 vs profit 207,165 Rev 102,691 vs 297,813 Nine months Shr profit one ct vs profit five cts Net profit 69,018 vs profit 230,188 Rev 641,823 vs 666,319 NOTE: The company was delisted from the NASDAQ in November 1985. Third qtr 1986 net includes extraordinary credit of 76,400 dlrs, or four cts a share.  
RECOMMENDATION REITERATED ON WANG LABS <WANB>. Analyst Thomas McCrann of Merrill Lynch said he reiterated a "buy" recommendation of Wang Laboratories Inc, noting that a successful cost cutting campaign could reduce the earnings loss expected for the third quarter ending in March. Wang was the most actively traded stock on the American Stock Exchange, rising 3/4 to 16-5/8. McCrann said that "Wang is a little bit ahead of where they were expected to be in their cost reductions, and as a result, the odds have increased that the loss for the quarter will be less than had been expected." McCrann said he expects Wang to report break even earnings per share or only a small loss per share for the third quarter. He said for the year, however, the company should report a loss of about 50 cts a share compared with earnings of about 35 cts a share a year ago.  
WINTHROP INSURED MORTGAGE II <WMI> SETS PAYOUT. Qtly div 35 cts vs 35 cts prior Pay April 15 Record March 31 NOTE: Winthrop Insured Mortgage Investors II.  
ENTEX ENERGY DEVELOPMENT LTD <EED> SETS PAYOUT. Qtly div 15 cts vs 15 cts prior Pay May 29 Record March 31  
FINAL TEST INC <FNLT> 4TH QTR LOSS. Shr loss six cts vs loss 88 cts Net loss 128,141 vs loss 1,298,377 Sales 1,332,218 vs 385,146 Year Shr profit six cts vs loss 1.47 dlrs Net profit 120,571 vs loss 2,171,011 Sales 4,617,034 vs 2,959,141  
MICHIGAN NATIONAL CORP <MNCO> VOTES DIVIDEND. Qtly div 30 cts vs 30 cts prior qtr Pay 15 April Record 1 April  
AUTOCLAVE ENGINEERS INC <ACLV> QTLY DIVIDEND. Qtly div four cts vs four cts prior Pay April 15 Record March 31 .  
ENTEX ENERGY DEVELOPMENT LTD <EED> YEAR LOSS. Unit loss 4.36 dlrs vs loss 4.27 dlrs Net loss 37.4 mln vs 32.9 mln Revs 19.3 mln vs 30.3 mln Avg units 8,413,000 vs 7,557,000 Note: Net includes writedown of oil and gas properties of 21.0 ln dlrs vs 16.5 mln dlrs and writedown of geothermal property of 10.4 mln dlrs vs 10.5 mln dlrs.  
NESTLE SEEKING AUTHORISATION FOR CERTIFICATE ISSUE. Nestle SA <NESZ.Z> said it would seek shareholder approval to issue participation certificates up to 20 pct of share capital, instead of the current limit of 10 pct. It said it wanted this authorisation in view of future certificate issues. Nestle's nominal capital amounts to 330 mln Swiss francs. Nestle reported net profits of 1.79 billion francs for 1986, up 2.2 pct from 1985, while turnover fell 9.9 pct to 38.05 billion as the Swiss franc strengthened against other currencies. The parent company's net profit rose to 666.6 mln francs from 592.9 mln in 1985, and the company planned an unchanged dividend of 145 francs per share and 29 francs per certificate after placing 170 mln francs in reserves, against 95 mln last year. The payout represented 27.6 pct of group net profit, against 28.2 pct last year. Nestle said it had also invited Fritz Leutwiler, former president of the Swiss National Bank and currently chairman of BBC AG Brown Boveri und Cie <BBCZ.Z>, to join the Nestle board.  
MONFORT OF COLORADO INC 2ND QTR SHR 1.03 DLRS VS 1.34 DLRS.  MONFORT OF COLORADO INC 2ND QTR SHR 1.03 DLRS VS 1.34 DLRS  
MONFORT OF COLORADO INC <MNFT> 2ND QTR NET. Qtr ended Feb 28 Shr 1.03 dlrs vs 1.34 dlrs Net 4,385,000 vs 5,792,000 Revs 474.4 mln vs 381.4 mln Six mths Shr 2.46 dlrs vs 2.71 dlrs Net 10.5 mln vs 11.7 mln Revs 906.0 mln vs 757.6 mln  
<OSHAWA GROUP LTD> 4TH QTR NET. Shr 52 cts vs 51 cts Net 16.5 mln vs 16.2 mln Revs 870.2 mln vs 800.7 mln Year Shr 1.48 dlrs vs 1.29 dlrs Net 47.3 mln vs 41.0 mln Revs 3.53 billion vs 3.10 billion Avg shrs 31,867,658 vs 31,831,050  
PAN AM CORP 4TH QTR LOSS 197.5 MLN DLRS VS PROFIT 241.4 MLN DLRS.  PAN AM CORP 4TH QTR LOSS 197.5 MLN DLRS VS PROFIT 241.4 MLN DLRS  
VIRCO MANUFACTURING CORP <VIR> 4TH QTR NET. Qtr ended Jan 31 Shr 67 cts vs 69 cts Net 1,525,000 vs 1,570,000 Revs 41.2 mln vs 40.2 mln Year Shr 1.75 dlrs vs 1.54 dlrs Net 4,001,000 vs 3,522,000 Revs 172.3 mln vs 168.7 mln Note: figures include losses from discontinued operations in qtr of 309,000 dlrs, vs 253,000 dlrs a year earlier and for the year of 309,000 dlrs vs 1,559,000 dlrs a year ago.  
THOMPSON MEDICAL CO INC <TM> DECLARES QTLY DIV. Qtly div 10 cts vs 10 cts prior Pay April 15 Record March 30  
NEW ENGLAND ELECTRIC SYSTEM <NES> TWO MONTHS NET. ended February Shr 69 cts vs 66 cts Net 37.7 mln vs 34.9 mln Revs 255.8 mln vs 288.8 mln Avg shrs 54.7 mln vs 53.2 mln 12 mths ended Feb Shr 3.23 dlrs vs 3.17 dlrs Net 174.8 mln vs 166.3 mln Revs 1.4 billion vs 1.5 billion Avg shrs 54.1 mln vs 52.4 mln  
DILLARD DEPT STORES INC <DDS> DECLARES QTLY DIV. Qtly div three cts vs three cts prior Pay May 1 Record March 31  
PAN AM CORP <PN> 4TH QTR LOSS. Shr loss 1.44 dlrs vs profit 1.79 dlrs Net loss 197.5 mln dlrs vs profit 241.4 mln Revs 797.3 mln vs 906.7 mln 12 mths Shr loss 3.42 dlrs vs profit 45 cts Net loss 462.8 mln vs profit 51.8 mln Revs 3.04 billion vs 3.48 billion Note: Net includes special charges of 65 mln dlrs vs special gain of 341 mln dlrs for the qtr and year.  
SAN JUAN BASIN ROYALTY <SJT> HIKES DISTRIBUTION. Cash distribution 4.2621 cts vs 3.2384 cts prior Pay April 14 Record March 31 NOTE: Company's full name is San Juan Basin Royalty Trust.  
SHL SYSTEMHOUSE INC <SHKIF> 2ND QTR FEB 28 NET. Shr 23 cts vs nine cts Net 5,700,000 vs 1,920,000 Revs 35.5 mln vs 19.8 mln 1st half Shr 41 cts vs 17 cts Net 10.0 mln vs 3,100,000 Revs 69.3 mln vs 36.7 mln NOTE: Share adjusted for two-for-one stock split approved in December 1986. Net includes tax credits of 2,970,000 dlrs vs 980,000 dlrs in quarter and 5,210,000 dlrs vs 1,590,000 dlrs in half. Backlog 230 mln dlrs vs 147 mln dlrs at start of fiscal year and 148 mln dlrs at the end of the first quarter.  
PHOTRONIC LABS INC <PLAB> 1ST QTR JAN 31 NET. Shr 10 cts vs seven cts Net 249,143 vs 175,476 Sales 3,034,010 vs 2,745,288  
PERMIAN BASIN ROYALTY <PBT> HIKES DISTRIBUTION. Cash distribution 3.9737 cts vs 3.0577 cts Pay April 14 Record March 31 NOTE: Trust's full name is Permian Basin Royalty Trust.  
ENDOTRONICS <ENDO> HALTED PENDING NEWS RELEASE. Endotronics Inc, halted at 1-3/4 on NASDAQ pending release of a news report, on Monday said it was expecting "substantial losses" for the quarter ending March 31, 1987 and the fiscal year ending Sept 30, 1987. The company had cited a dispute over payment by Yamaha Inc, one of its Japanese distributors, over payment of a promissory note for 3,686,000 dlrs in overdue accounts.  
TEXAS INSTRUMENTS INC <TXN> SETS QUARTERLY. Qtly div 50 cts vs 50 cts prior Pay April 20 Record March 31  
SOUTHEAST BANKING CORP <STB> DECLARES QTLY DIV. Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30  
HUDSON'S BAY CO YEAR OPER SHR PROFIT 32 CTS VS LOSS 1.23 DLRS.  HUDSON'S BAY CO YEAR OPER SHR PROFIT 32 CTS VS LOSS 1.23 DLRS  
COOK UNITED INC EXPECTS LOSS OF 16 MLN DLRS FOR FISCAL 1987.  COOK UNITED INC EXPECTS LOSS OF 16 MLN DLRS FOR FISCAL 1987  
YORK FINANCIAL CORP <YFED> DECLARES QTLY DIV. Qtly div 17 cts vs 17 cts prior Pay May five Record April 20  
COMBINED INT'L <PMA> RAISES PAYOUT, VOTES SPLIT. Combined International Corp said its board voted to increase the quarterly dividend  7.1 pct to 60 cts a share from 56 cts payable May 26, record May 12. It said directors also approved a two-for-one stock split, subject to approval by shareholders of a proposed capital stock amendment at the annual meeting in April. The record and pay dates would be announced later, it said.  
YORK FINANCIAL <YFED> SPLITS STOCK. York Financial Corp, parent company of York Federal Savings and Loan Association, said its board of directors declared a five-for-four stock split in the form of a 25 pct stock dividend. The company said it will distribute the split on May 5, to shareholders of record April 20.  
ESSO SAF <ESSF.PA> YEAR ENDED DEC 31 1986. Net profit 305 mln francs vs 258 mln. Net dividend 25 francs vs 20 francs. Operating loss 696 mln francs vs 1.46 billion. Note - The company, which is the French subsidiary of Exxon Corp. <XON.N>, said its net profit result included the reintegration of 1.2 billion francs of provisions for exchange fluctuations.  
PAN AM'S <PN> MAIN UNIT TO REPORT SMALLER LOSS. Pan Am Corp said its largest division, the Atlantic, will report a first quarter loss that will be substantially lower than that reported a year ago. In the 1986 1st qtr, Pan Am reported a net loss of 118.4 mln dlrs, which included foreign exchange losses of 19.3 mln. The company did not say how much the Atlantic division lost. Pan Am also said it is encouraged by passenger traffic results so far this year as well as booking trends. In January and February, the airline said total systemwide revenue passenger miles were up five pct and 11 pct, respectively, over the same months last year. It also said that based on current trends, its largest division should report vastly improved second-quarter traffic compared to last year, which resulted in a load factor of 45.7 pct for the second quarter of 1986. Pan Am also said its principal subsidiary, Pan American World Airways, had a 1986 net loss of 469.3 mln dlrs, compared with a profit of 38.7 mln dlrs in 1985, which included a gain of 341 mln dlrs for the sale of its Pacific Division. It said the airline's operating loss for the year was 325.5 mln dlrs compared with a operating profit of 196.5 mln dlrs in 1985.  
ENDOTRONICS <ENDO> TARGET OF INVESTIGATION. Endotronics Inc said it is the target of a formal private investigation by the Securities and Exchange Commission as well as the Federal Bureau of Investigation. The company also said its independent accounts, Peat, Marwick, Mitchell and Co, served notice that its report on Endotronics' financial statements as of Sept 30, 1986 and for the year then ended should no longer be relied upon. Endotronics said the notice from its accountants stated "we cannot satisfy ourselves as to the true facts of the situation to a degree necessary to continue to be associated with such consolidated financial statements." Endotronics recently reported that it was reviewing the need to establish a reserve for all or a portion of approximately 3,686,000 dlrs in overdue accounts receivable and to assess the impact, if any, on prior period financial statements in light of a dispute with one of its Japanese distributors over payment of the overdue accounts. Endotronics said it was providing documentation to the Securities and Exchange Commission in connection with that agency's investigation. It also said Michael Gruenberg resigned from the company's board of directors.  
ADVANCED INSTITUTIONAL <AIMS> CUTS WORKFORCE. Advanced Institutional Management Software Inc said it has cut its workforce to 53 from 74 and closed its Atlanta office to cut expenses and improve profitability. The company said it is also in the process of reducing its office space in four of its six offices nationwide. Advanced also said it has named executive vice president Steven B. Sheppard chief operating officer. The company said president and chief executive officer Morris Moliver had been chief operating officer as well.  
SUN STATE SAVINGS <SSSL> SEES HIGHER EARINGS. Sun State Savings and Loan expects to report an earnings increase this year over 1986, Chairman Edward Janos told shareholders at the company's annual meeting. In a statement, Janos said core earnings are expected to average 1.5 mln dlrs per quarter, or six mln dlrs for the year, while sales of real estate joint ventures will add another five mln during the year. In 1986, Sun State reported earnings of 9,427,000 dlrs, or 2.05 dlrs per share.  
ATT <T> CHAIRMAN SAYS DIVIDEND WILL NOT BE CUT. American Telephone and Telegraph Co does not plan to reduce its regular quarterly dividend of 30 cts a share on its common stock, said James E. Olson, chairman. "It has been the intent to set the dividend at a level so that it could be sustained through the ups and downs of the business cycle," Olson told a meeting of securities analysts. "We see no reason to change that policy," he said. Although ATT will maintain its current dividend, Olson said the company wants to decrease the percentage of earnings paid in dividends by increasing earnings. Industry analysts had speculated that ATT might cut its common dividend, especially after the company posted a fourth quarter net loss of 1.17 billion dlrs and earned only five cts a share for the full year. The loss included a one-time restructuring charge of 1.7 billion dlrs. Olson said he expects ATT's cash flow to remain strong despite the poor earnings.  
ECHLIN INC 2ND QTR SHR 24 CTS VS 20 CTS.  ECHLIN INC 2ND QTR SHR 24 CTS VS 20 CTS  
ALLIED-LYONS SEES HIRAM WALKER PROFITS RISING. <Allied-Lyons PLC> sees rising profits from 51-pct-owned liquor producer Hiram Walker-Gooderham and Worts in the current fiscal year ending in early March, 1988, chairman Derrick Holden-Brown said in a speech prepared for delivery to Toronto analysts. "We anticipate that Hiram Walker profits will be well above those of the plateau years," he said, referring to the four years up to 1985. "In other words, we will have regained the 1985 position and improved on it," Holden-Brown said. Allied-Lyons won control of Hiram Walker-Gooderham last year in a battle against Gulf Canada Corp, which finally got a 49 pct stake after an out-of-court settlement. Hiram Walker Resources Ltd, the previous owner, reported liquor profits of 282 mln Canadian dlrs in the fiscal year ending Sept. 30, 1985, 278 mln dlrs in 1984, 267 mln in 1983, 294 mln in 1982 and 280 mln in 1981. Holden-Brown said Allied-Lyons' financial results for the fiscal year just ended March seven would include three months of Hiram Walker-Gooderham profits, but he did not provide actual figures. He said Hiram Walker-Gooderham's profit improvement in the current year will come from a previously announced reorganization put into effect March 1, 1987 and a close partnership with Allied-Lyons' existing Allied Vintners division.  
ECHLIN INC <ECH> 2ND QTR FEB 28 NET. Shr 24 cts vs 20 cts Net 11,784,000 vs 8,302,000 Rev 269.1 mln vs 211.9 mln Six months Shr 48 cts vs 40 cts Net 23,191,000 vs 16,556,000 Rev 517.5 mln vs 429.3 mln  
AMERICAN CAN SEES HIGHER 1ST QTR, YR NET.  AMERICAN CAN SEES HIGHER 1ST QTR, YR NET  
<HUDSON'S BAY CO> 4TH QTR NET. ended January 31 Oper shr profit 3.98 dlrs vs profit 4.35 dlrs Oper net profit 123.6 mln vs profit 108.3 mln Revs 1.88 billion vs 1.76 billion Year Oper shr profit 32 cts vs loss 1.23 dlrs Oper net profit 33.0 mln vs loss 9,055,000 Revs 5.69 billion vs 5.27 billion Note: 1986 excludes writeoff of 40.4 mln dlrs, primarily due to investment in Dome Petroleum Ltd <DMP>.  
<GENDIS INC> 4TH QTR JAN 31 NET. Shr 53 cts vs 61 cts Net 9,909,000 vs 11,489,000 Revs 185.9 mln vs 161.5 mln Year Shr 1.20 dlrs vs 1.37 dlrs Net 22,522,000 vs 25,667,000 Revs 588.5 mln vs 521.7 mln  
<BIFLYX> 2ND QTR DEC 31 NET. Shr nil vs nil Net profit 24,000 vs loss 66,000 Revs 235,000 vs 93,000 Six mths Shr nil vs nil Net profit 40,000 vs loss 153,000 Revs 394,000 vs 99,000  
AMERICAN CAN <AC> SEES HIGHER YEAR NET. American Can Co chairman Gerald Tsai said the company will record higher earnings in the first quarter and for the full year. Addressing analysts, Tsai said "First quarter results have been extremely encouraging and results for all of 1987 will show significant improvement over 1986." American Can earned 196.3 mln dlrs, or 3.21 dlrs per share, adjusted for a two-for-one stock split, in 1986. In the 1986 first quarter, the company reported net income of 67.5 mln dlrs, including one-time gains from sale of assets, or 2.30 dlrs per share, before the stock adjustment. In the 1987 first quarter, American Can will record a one-time gain of 28 cts per share from the sale of shares in its Musicland Group subsidiary. The gain is slightly higher than the expected gain the company predicted in February because additional shares of the unit were sold. In response to a question, Tsai said American Can's investment in Jefferies and Co is "very small". "We treat it as just another passive investment," he said. According to press reports, American Can owns 20 pct of Jefferies and is its largest single shareholder. Yesterday, Boyd Jefferies, chairman and founder of the brokerage firm bearing his name, resigned from the firm and said he would plead guilty to two felony charges for breaking securities laws. Responding to another question, Tsai said AIDS-related claims were a small portion of claims made with American Can's insurance subsidiaries in 1986.  
CENTRAL BANKING SYSTEM INC <CSYS> QTLY DIVIDEND. Qtly div ten cts vs ten cts Pay April 15 Record April 1  
GPU <GPU> SEES TMI-2 FUEL PROBLEMS RESOLVED. General Public Utilities Corp said the water-clarity problem delaying the removal of fuel from the damaged Unit Two of the Three Mile Island nuclear power plant appears to have been resolved. The company said the slower than expected removal of the fuel, which has been primarily due to the water-clarity problems, is now expected to extend fuel removal into 1988. A spokesman said the company had previously expected this to be completed by the end of 1987 and has not estimated how far into 1988 the process will extend. It still expects to complete the entire clean-up by the end of 1988, he added. GPU said its auditors, Coopers and Lybrand, again qualified its opinion of GPU's financial statements, adding the recovery of TMI-2 decommissioning costs to the unresolved issues leading to the qualified opinion. GPU said its operating subsidiaries will seek to recover the costs of decommissioning TMI-2 in future rate proceedings. As in past years, the qualified opinion continues to list other uncertainties associated with the accident, which damaged TMI-2 -- the recovery of cleanup costs and any payments for damages that might exceed available insurance proceeds.  
ECHLIN<ECH> EXPECTS CONTINUED PROFIT GROWTH. Echlin Inc said it expects further earnings increases for the second half of fiscal 1987 ending in August due to unit sales growth and improved operations. "As expected, market conditions have improved so that demand for automotive replacement parts is gradually and steadily expanding," Echlin president Frederick Mancheski said. Earlier, Echlin reported first half fiscal 1987, ended Feb 28, earnings of 23.2 mln dlrs, or 48 cts a share, up from 16.6 mln, or 40 cts a share, in the prior year's first half. Also, Echlin said it had second quarter net income of 11.8 mln dlrs, or 24 cts per share, compared with net income of 8.3 mln dlrs, or 20 cts a share, in fiscal 1986's second quarter.  
ATT <T> COST-CUTTING EFFORTS ON TARGET. American Telephone and Telegraph Co chairman James E. Olson said he is very pleased with the company's efforts so far to cut costs. He told a meeting of securities analysts that, although the company is not yet at point in its cost-cutting drive to improve profit margins, it is "on the right track." Olson said ATT's cash flow was "very strong in the first two months of the year, better than budgeted." While Olson does not know if the company's earnings and revenues will improve by yearend, he said ATT is "moving in the proper direction." For 1986, ATT's earnings dropped to 139 mln dlrs, or five cts a share, on revenues of 34.1 billion dlrs, from 1.56 billion dlrs, or 1.37 dlrs a share, on revenues of 34.4 billion dlrs in 1985. During 1986 ATT took 3.2 billion dlrs in charges from expenses related to reducing its work force by 32,000.  
MCM CORP <MCMC> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay April 10 Record March 31  
THACKERAY CORP <THK> YEAR LOSS. Oper shr loss 22 cts vs loss 20 cts Oper net profit 1,013,000 vs profit 2,219,000 Sales 77.0 mln vs 74.0 mln Avg shrs 5,107,401 vs 5,361,793  
ALLIED-LYONS SEES SUBSTANTIAL SECOND HALF GROWTH. <Allied-Lyons PLC> will report substantial growth in the second half of fiscal 1987 ended March 7, chairman Derrick Holden-Brown said in answer to reporters' queries. "You will certainly see substantial growth in Allied-Lyons in the second half," Holden-Brown said following a presentation to Toronto securities analysts. Holden-Brown declined to say whether second half growth in profit before taxes would exceed the 20.7 pct rise reported in the first half. Allied-Lyons had first half profit of 148.0 mln stg, up from 122.6 mln stg in the prior year. Allied-Lyons will also have a full year extraordinary cost of slightly more than seven mln stg for defence costs associated with Elders IXL Ltd's failed take-over bid for the company, Holden-Brown also said. But that cost will be more than offset by an extraordinary gain of about 60 mln stg on Allied-Lyons' sale of its 24.9 pct interest in Australian brewers Castlemaine Toohey, he said. "So with Australians, you win some and you lose some. But hopefully you win them all in the end," Holden-Brown said. Asked if he thought Allied-Lyons is vulnerable to other take-over attempts, Holden-Brown replied: "No, I don't." "We must never be complacent and we must always be very watchful, but I think we would be very expensive," he said. Holden-Brown said Allied-Lyons' share price to corporate earnings ratio is now comparable with other leading companies in the food and beverage industry. "That was not the case two years ago. If the Australians had come a little bit earlier, they might have had more luck, I think," Holden-Brown said. Holden-Brown said Allied-Lyons' move to acquire Hiram Walker-Gooderham and Worts Ltd in March, 1986 during Elders take-over bid for the company was "100 pct a growth action." "We knew when we did it that it could be misconstrued, and that people almost inevitably would say (the acquisition was) defensive, but it never was," Holden-Brown told reporters. Asked by securities analysts if Allied-Lyons plans a share issue in Canada after acquiring a 51 pct interest in Hiram Walker, Holden-Brown responded: "Plan might be too strong a word. But I must say I do feel the need for Allied-Lyons to be better known in Canada."  
<DRYCLEAN USA> YEAR NET. Shr 82 cts vs 63 cts Net 1,661,000 vs 1,251,000 Revs 14.8 mln vs 11.6 mln  
NAVISTAR <NAV> UP ON HIGHER EARNINGS OPINION. Navistar International Corp's stock rose after brokerage house Sanford C. Bernstein and Co raised its earnings estimate of the company based on expectations of better truck orders and truck tonnage, traders said. Navistar led the active list with a gain of 1/4 to 7-1/4 on volume of 4.2 mln shares. Traders familiar with the opinion said that David Eisenberg, director of Sanford C. Bernstein and Co's institutional strategy committee, raised his earnings estimates to 80 cts a share for the current fiscal year ending in October. He expects Navistar to earn 1.20 dlrs a share next year. In 1986, the company lost 14 cts a share. Eisenberg was unavailable for comment.  
JUSTIN INDUSTRIES INC <JSTN> SETS DIVIDEND. Qtly div 10 cts vs 10 cts prior Pay April 10 Record March 27  
SCHOLASTIC INC <SCHL> 3RD QTR FEB 28 NET. Shr 1.55 dlrs vs 70 cts Net 3,409,000 vs 1,455,000 Rev 54.1 mln vs 45.3 mln Nine months Shr 1.60 dlrs vs 10 cts Net 3,517,000 vs 211,000 Rev 144.4 mln vs 127.0 mln NOTE: Qtr net includes extraordinary gain of 1.2 mln dlrs, versus 155,000 dlrs for fiscal 1986's third quarter, and a non-recurring pre-tax gain of 720,000 dlrs.  
KLEINWORT BENSON <KBA> UNIT SETS FIRST DIVIDEND. Kleinwort Benson International Investment Ltd's subsidiary, Kleinwort Benson Australian Income Fund, a closed end management investment company, declared its first quarterly dividend of 36.5 cts payable April 16 to shareholders of record April 1.  
VERNITRON CORP <VRN> 4TH QTR AND YEAR LOSS. Oper shr loss 49 cts vs loss 10 cts Oper net loss 3,014,000 vs loss 656,000 Revs 22.7 mln vs 23.6 mln 12 mths Oper shr loss 19 cts vs profit 40 cts Oper net loss 1,142,000 vs profit 2,476,000 Revs 93.3 mln vs 99.0 mln NOTE: qtr 1986 and prior qtr excludes loss discontinued operations 2,441,000 and 4,078,000, respectively. Year 1986 and prior excludes loss discontinued operations 3,509,000 and 5,278,000, respectively. qtr and year 1986 excludes tax loss 1,557,000 and loss 151,000, respectively. qtr and year prior excludes tax gain 833,000 and 3,346,000, respectively.  
GOODY PRODUCTS INC <GOOD> YEAR END OPER NET. Oper shr 1.21 vs 88 cts Oper net 7,767,000 vs 5,494,000 Revs 163.7 mln vs 133.5 mln NOTE: 1986 and 1985 oper net excludes a loss of 1,332,000 dlrs and a profit of 319,000 dlrs, respectively, for discontinued operations. Earnings per shr are restated to reflect 3-for-2 stock split effective July one, 1986.  
VMS MORTGAGE INVESTORS L.P. <VMLPZ> MONTLY DIV. DIst nine cts vs nine cts prior Payable May 14 Record April one  
PEPS BOYS-MANNY, MOE AND JACK <PBY> SET PAYOUT. Qtly div 5.5 cts vs 5.5 cts prior Pay April 27 Record April one.  
VMS MORTGAGE INVESTORS <VMTGZ> RAISES PAYOUT. VMS Mortgage Investors LP II said it raised its first quarter 1987 cash dividend to 21 cts from 20 cts the prior quarter payable May 14, 1987, to shareholders of record April One, 1987.  
GREAT COUNTRY BANK <GCBK> 3RD QTR NET. Qtr ends Feb 28 Shr 53 cts vs N/A Net 1,165,000 vs 575,000 Nine mths Shr 1.54 dlrs vs N/A Net 3,363,000 vs 1,535,000 Assets 375.2 mln vs 320.7 mln Deposits 313.8 mln vs 264.2 mln Loans 286.3 mln vs 235.9 mln NOTE: earnings per share data not presented for 1986 as Great Country Bank converted from a mutual to a capital stock savings bank on Jan 14, 1986. Such information is misleading and inappropriate, the company said.  
MARCUS <MRCS> VOTES 50 PCT STOCK DIVIDEND. Marcus Corp said its board voted a 50 pct stock dividend to be distributed May 1, record April 15. It said the dividend applies equally to holders of its common stock and Class B common.  
VMS MORTGAGE <VMTGZ> CASH DISTRIBUTION RISES. VMS Mortgage Investors L.P. II said it declared a first-quarter 1987 cash distribution of 21 cts a depositary unit, up five pct from the prior quarter. It said the distribution will be payable May 14, record January 1.  
EMERALD HOMES <EHP> SETS INITIAL DISTRIBUTION. Emerald Homes L.P. said its general partners declared an initial 30-ct per unit distribution payable May 15 to unitholders of record March 31. Emerald made its initial public offering February 6.  
SOUTHERN HOME SAVINGS BANK <SHSB> YEAR NET. Shr 1.86 dlrs vs 1.85 dlrs Net 1,923,304 vs 1,897,998  
BINKS MFG CO <BIN> REGULAR DIVIDEND SET. Qtly div 25 cts vs 25 cts previously Pay April 17 Record March 30  
20-MAR-1987. 20-MAR-1987 
COMMONWEALTH EDISON CO <CWE> 12 MONTHS NET. Period ended Feb 28 Shr 4.66 dlrs vs 4.40 dlrs Net 1,048,884,000 vs 959,626,000 Revs 5.43 billion vs 5.04 billion Avg shrs 200,242,000 vs 191,840,000 NOTE: Per-share earnings reflect payment of preferred dividend requirements  
NIAGARA MOHAWK <NMK> TO CUT COSTS. Niagara Mohawk Corp said it is "cautiously optimistic" about results improvements for 1987 and said it is studying measures to cut operating costs. These measures include freezing management salaries, abolishing vacant positions and reducing overtime. A spokesman said the company had no current plans to lay off workers. The company declined to say how much the cost savings would amount to. A five year forecast is expected to be issued in early summer, a spokesperson said. The company said it has redeemed about 273 mln dlrs in high cost debt during 1986 and hopes to redeem more debt this year. For 1986, Niagara Mohawk's earnings per share fell to 2.71 dlrs from 2.88 dlrs in 1985.. The company said earnings reduced primarily as a result of a reduction early in 1986 in earnings return on equity allowed by the N.Y. State Public Service COmmission. Niagara said it is concerned about the continued lowering of authorized return and has reinforced petitions to grant a fair return on equity.  
GANTOS INC <GTOS> 4TH QTR JAN 31 NET. Shr 43 cts vs 37 cts Net 2,276,000 vs 1,674,000 Revs 32.6 mln vs 24.4 mln Year Shr 90 cts vs 69 cts Net 4,508,000 vs 3,096,000 Revs 101.0 mln vs 76.9 mln Avg shrs 5,029,000 vs 4,464,000 NOTE: 1986 fiscal year ended Feb 1, 1986  
<OE INC> 4TH QTR NET. Shr 24 cts vs 26 cts Net 1.5 mln vs 1.3 mln Revs 40.5 mln vs 33.5 mln Year Shr 80 cts vs 82 cts Net 4.9 mln vs 4.1 mln Revs 143.0 mln vs 121.1 mln Avg shrs 6.1 mln vs 5.0 mln  
VMS MORTGAGE LP <VMLPZ> MONTHLY CASH PAYOUT. VMS Mortgage L.P. said it declared a regular monthly cash distribution of nine cts a depositary unit for the month of March, payable May 14, record April One.  
LILCO REVISES 1986 NET TO INCLUDE 16 MLN DLR LOSS PROVISION.  LILCO REVISES 1986 NET TO INCLUDE 16 MLN DLR LOSS PROVISION  
FALCON CABLE <FAL> SETS INITIAL DISTRIBUTION. Falcon Cable Systems Co said its set an initial quarterly cash distribution of 53.75 cts per unit, payable May 15 to unitholders of record March 31. The partnership made its initial public offering in December, 1986. Falcon said it expects to pay cash distributions to limited partners at an annual rate of 2.15 dlrs per unit, through December 31, 1989.  
MONTGOMERY STREET INCOME <MTS> MONTHLY DIVIDEND. Mthly div 15 cts vs 15 cts Pay April 15 Record April 1  
<SULLIVAN MINES INC> YEAR LOSS. Oper shr loss 12 cts vs profit four cts Oper loss 1,069,000 vs profit 339,000 Revs 12.8 mln vs 10.9 mln Note: 1986 shr and net exclude extraordinary gain of 382,000 dlrs or four cts share. 1985 shr and net exclude extraordinary gain of 183,000 dlrs or two cts share  
LILCO <LIL> REVISES 1986 NET TO INCLUDE LOSS. Long Island Lighting Co said it revised its preliminary 1986 net income to include a 16 mln dlrs after tax provision for its investment in the Jamesport Nuclear units. Due to the provision, it said its revised 1986 net income was 316.7 mln dlrs or 2.13 dlrs per share after deducting for preferred stock dividend requirements, which were not paid in either 1986 or 1985. It had earlier reported 1986 income of 332.7 mln dlrs or 2.28 dlrs per share. LILCO also said its board authorized contracts for its corporate officers calling for payment of one year's salary, and continuation of insurance and retirement benefits if the company changes hands and these officers lose their jobs. LILCO said none of these contracts will result in additional costs to its customers. Lilco said the downward revision in its 1986 earnings is a reserve established to reflect a settlement agreement with the staff of New York State's Public Service Commission respecting the utility's spending on a nuclear power station planned for, but never built at, Jamestown, N.Y. The company declined to detail the settlement, explaining the settlement has not been approved by the commission. Lilco was seeking to include costs totaling 118 mln dlrs for the abandoned nuclear power plant project in its rate base, a spokeswoman said.  
20-MAR-1987. 20-MAR-1987 
SUNBELT NURSERY GROUP INC <SBN> 2ND QTR FEB 28. Shr loss 40 cts vs loss 29 cts Net loss 1.5 mln vs loss 1.1 mln Revs 28.9 mln vs 28.5 mln Six months Shr loss 99 cts vs loss 69 cts Net loss 3.7 mln vs loss 2.6 mln Revs 52.5 mln vs 51.7 mln  
MARCOM TELECOMMUNICATIONS <MRCM> 2ND QTR JAN 31. Oper shr loss five cts vs loss six cts Oper net loss 157,688 vs loss 96,573 Revs 1,094,331 vs 1,378,973 Avg shrs 3,315,654 vs 1,661,023 Six mths Oper shr loss seven cts vs loss 24 cts Oper net loss 198,555 vs loss 394,589 Net 2,243,377 vs 2,440,850 Avg shrs 2,796,848 vs 1,637,592 NOTE: Current year 2nd qtr and six mths excludes a loss 10,767 dlrs for discontinued operations. Prior year 2nd qtr and six mths excludes a loss of 54,686 dlrs and 112,565 dlrs for discontinued operations. Full name of company is Marcom Telecommunications Inc.  
EASTPARK REALTY TRUST <ERT> QTLY DIV. Qlty div 25 cts vs 25 cts prior Payable April 22 Record April 10  
ESSEX CORP <ESEX> YEAR END LOSS. Oper shr loss 11 cts vs profit 33 cts Oper net loss 132,000 vs profit 408,000 Revs 25.2 mln vs 23.0 mln NOTE: 1986 and 1985 oper net excludes a loss of 636,000 dlrs or 52 cts per share and a loss of 994,000 dlrs or 80 cts per share for discontinued operations.  
<SULPETRO  LTD> YEAR OCT 31 LOSS. Shr loss 19.22 dlrs vs loss 3.90 dlrs Net loss 276.4 mln vs loss 45.6 mln Revs 85.4 mln vs 113.3 mln NOTE: Shr results after deducting preferred share dividends of 13.1 mln dlrs in both periods. Current loss includes a 125 mln dlr writedown of oil and gas properties, a 67 mln dlr writeoff of deferred charges, a 22.5 mln dlr loss on disposal of U.K. properties, a 21.2 mln dlr equity loss from affiliate Sulbath Exploration ltd and a 4.6 mln dlr loss on other investments.  
STANWOOD CORP <SNW> 4TH QTR JAN 3. Shr loss 1.12 dlrs vs profit one cts Net loss 1.7 mln vs profit 8,000 dlrs Revs 31.8 mln vs 42.1 mln Year Shr loss 51 cts vs profit 57 cts NEt loss 780,000 vs profit 876,000 Revs 117.8 mln vs 117.3 mln NOTE:1986 4th qtr includes loss of 911,000 for termination of licensing agreement and loss of 319,000 dlr for termination of womens wear operation.  
SULPETRO LOSS DUE TO WRITEDOWNS, ASSET DISPOSALS. <Sulpetro Ltd> said its 1986 fiscal year net loss of 276.4 mln dlrs, or 19.22 dlrs per share, was due to several factors, the largest of which was a writedown of 125.0 mln dlrs of oil and gas properties. Sulpetro also recorded a writeoff of deferred charges amounting to 67.0 mln dlrs, a loss of 22.5 mln dlrs on the disposal of all properties in the United Kingdom and an equity loss of 21.2 mln dlrs from affiliate Sulbath Exploration Ltd. There was also a loss on other investments of 4.6 mln dlrs and a loss on operations of 36.1 mln dlrs after interest, depletion, depreciation and income tax recoveries. In the fiscal year ended October 31, 1985, Sulpetro had a net loss of 45.6 mln dlrs, or 3.90 dlrs per share. The company also said its non-recourse project financing for the Irish-Lindergh heavy oil field remains in default due to continuing low oil prices.  
MULTI-MEDIA SEES YEAR END LOSS. Multi-Media Barter Ltd said it expects to report a net loss of 820,000 dlrs or 17 cts a share for the year ended December 31, compared to a loss of 553,000 or 11 cts a share in the prior year. The fourth quarter resulted in a net loss of 227,000 or four cts compared to a loss of 330,000 or six cts a shares last year. It said it is currently in the process of restructuring by reducing expenses and streamlining operations and has cut expenses from 50,000 dlrs to less than 15,000 dlrs a month.  
NATIONAL HMO CORP <NHMO> 2ND QTR JAN 31. Shr loss nine cts vs profit nine cts Net loss 478,000 vs profit 371,000 Revs 3.4 mln vs 2.6 mln Six months Net loss 466,000 vs profit 685,000 Revs 6.2 mln vs 5.0 mln NOTE:1987 net loss includes writeoff of deferred start up costs totaling 490,000 dlrs.  
MINORCO <MNRCY> HALF YEAR DEC 31. Shr 26 cts vs 38 cts Net 44.0 mln vs 65.0 mln NOTE:1986 net includes one mln dlr extraordinary gain and 1985 net icludes four mln dlrs extraordinary loss.  
MINORCO <MNRCY> SEES IMPROVED SECOND HALF. Minorco said it expects net earnings to be substantially stronger than the 44.0 mln dlrs reported for the first half. In reporting that first half results declined from 65.0 mln dlrs, Minorco said the contributions from its 50 pct investment in December 1985 in Adobe Resources Corp was negative as a result of low oil and gas prices.  
MINORCO <MNRCY> SEES IMPROVED SECOND HALF. Minorco said it expects net earnings to be substantially stronger than the 44.0 mln dlrs reported for the first half. In reporting that first half results declined from 65.0 mln dlrs, Minorco said the contributions from its 50 pct investment in December 1985 in Adobe Resources Corp was negative as a result of low oil and gas prices.  
NEOAX INC <NOAX> 4TH QTR. Shr loss 13 cts vs loss six cts Net loss 1.4 mln vs loss 635,000 Revs 40.3 mln vs 28.5 mln Year Shr profit 40 cts vs profit 26 cts Net profit 4.2 mln vs 2.6 mln Revs 166.4 mln vs 94.6 mln NOTE:1986 4th qtr and year net reflects dividend requirements of 1.5 mln dlrs and 3.3 mln dlrs, and charges of 257,000 dlrs and 4.6 mln dlrs respectively which is not accruable or payable because of pre-reorganization tax loss carryforwards. 1985 4th qtr and year net reflects dividend requirement of 1.1 mln dlrs and 2.3 mln dlrs, respectively, and charges of 472,000 dlrs and 2.9 mln dlrs respectively which is not accruable or payable because of pre-organization tax loss carryforwards.  
ALITALIA SPA <AZPI.MI> CALENDAR 1986. Provisional net profit 55 billion lire vs 48 billion Turnover 3,750 billion vs 3,369 billion. NOTE -  Official results for Alitalia, Italy's national airline which is controlled by the state industrial holding company (Istituto per la Ricostruzione Industriale -IRI), are expected to be announced at an annual shareholders meeting in April.  
ALITALIA REPORTS HIGHER NET PROFITS. Italy's national airline, Alitalia Spa <AZPI.MI>, reporting a 14.6 pct rise in provisional 1986 net profit, said it carried seven pct more passengers on domestic routes last year, but 11.5 pct fewer passengers on flights from North America and Canada. Alitalia said the drop in North American traffic had been due to a general fall in the numbers of American tourists visiting Europe caused by fears of terrorism. The airline reported provisional net profit rose to 55 billion lire from 48 billion in 1985. A spokesman said Alitalia was hoping for an increase in traffic with the U.S. In 1987. It planned to increase the number of flights from Italy to New York to 19 per week, to reinstate flights to Boston and to re-open the direct Rome-Milan-Los Angeles service. The spokesman announced that from March 29, Alitalia would be starting a new weekly service to Shanghai. For its summer 1987 programme, it would be adding 127 extra flights to European destinations -- an increase of 27 pct.  
RAFIDAIN BANK'S JORDAN BRANCH RAISES CAPITAL. The Jordan branch of Iraq's Rafidain Bank said it will raise paid-up capital to comply with the country's minimum requirement of five mln dinars by drawing on profits from its operations in the country. Jordan's government asked banks in early 1985 to comply with the new capital requirement -- raised from three mln dinars -- by the start of 1986. Rafidain's Area Manager Adnan Abdul Karim al-Azzawi told Reuters the branch had now registered its capital at the higher level but did not say how long it would take to pay it in. The bank's 1986 balance shows paid-up capital of 3.1 mln dinars. Banks in Jordan have generally complied with the higher capital requirement except Chase Manhattan which decided instead to close its operation, banking sources said. Local banks floated shares to raise extra capital, while the branches of foreign banks brought in additional cash. Banking sources said it appeared that Jordan had made an exception in Rafidain's case, allowing it longer to comply. They said the gesture refelcted close political ties between Jordan and Iraq as well as Baghdad's financial difficulties. The Jordan branch saw pre-tax profit rise 80 pct in 1986 to 550,332 dinars on assets of 12.6 mln dinars.  
WOOLWORTHS LTD REPORTS 9.27 MLN DLR NET PROFIT YR END FEB 1 VS 63.20 MLN.  WOOLWORTHS LTD REPORTS 9.27 MLN DLR NET PROFIT YR END FEB 1 VS 63.20 MLN  
WOOLWORTHS LTD <WLWA.S> YR ENDED FEB 1. Shr 4.16 cents vs 28.80 Final Div nil vs 10.5 cents making six for year vs 16.5 Pre-tax profit 2.68 mln dlrs vs 107.71 mln Net 9.27 mln vs 63.20 mln Turnover 5.47 billion vs 4.83 billion Other income 65.33 mln vs 51.68 mln Shrs 222.94 mln vs 219.54 mln. NOTE - Net is after tax credit 6.6 mln vs tax paid 43.39 mln, depreciation 41.18 mln vs 34.10 mln, interest 42.42 mln vs 36.23 mln and minorities 11,000 vs 1.12 mln but before extraordinary net profit 24.98 mln vs loss 51.71 mln  
BOOKER PLC <BOKL.L> 1986 YEAR. Shr 27.89p vs 24.24p Div 9.0p vs 7.75p making 13.75p vs 12.0p Turnover 1.26 billion stg vs 1.19 billion Pretax profit 54.6 mln vs 46.5 mln Tax 16.5 mln vs 13.5 mln Interest paid 2.2 mln vs 2.4 mln Minority interests 2.3 mln debit vs same Extraordinary items 42.3 mln profit vs 5.4 mln loss Pretax profit includes - Agribusiness 28.3 mln vs 22.5 mln Health products 6.5 mln vs 5.4 mln Wholesale food distribution 8.3 mln vs 7.3 mln Retail food distribution 4.2 mln vs 5.9 mln U.K. 28.7 mln vs 27.2 mln U.S. 21.1 mln vs 16.1 mln  
AUSTRALIA'S WOOLWORTHS LOOKS TO IMPROVED PROFITS. Woolworths Ltd <WLWA.S> said policy, management and financial changes initiated during the 1986/87 business year should cause profits to reach more acceptable levels in 1987/88 end-February 1. Net profit reported earlier fell 85.3 pct in the year ended February 1. Results for the first month of the new year were encouraging after a period of uncertain consumer confidence and difficult trading conditions, it said in a statement. The Big W discount store division and New South Wales supermarkets produced very disappointing results, it added. Woolworths earlier reported a fall in net profit to 9.27 mln from 63.20 mln on sales of 5.47 billion against 4.83 billion. Capital spending for the year was 119 mln dlrs against 105 mln for the previous year with 50 new stores opened, but total sales were below target, Woolworths said. The company provided 20 mln dlrs against operating profit for the year to cover mark-downs on stock. Extraordinary items included a 53 mln dlr profit on the sale of properties and investments less a 28 mln provision for reorganising the Big W chain. Woolworths is unrelated to the U.S. Group F.W. Woolworth <Z.N>. It has been the subject of takeover speculation since <Industrial Equity Ltd> acquired a 20 pct stake last year. New Zealand's diversified investment group <Rainbow Corp Ltd> bought Safeway Stores Inc's <SA> 20 pct holding in Woolworths for 190 mln dlrs late last year. Safeway put its stake up for tender just in time to take advantage of changes in U.S. Tax laws effective from the end of December, informed sources said. Woolworths shares closed on Australian stock exchanges today at 3.50 dlrs, down five cents from Friday.  
BOOKER SAYS 1987 STARTS WELL. Booker Plc <BOKL.L> said 1987 had started well and the group had the resources to invest in its growth business both organically and by acquisition. It was commenting on figures for 1986 which showed pretax profits rising to 54.6 mln from 46.5 mln previously. Profits from the U.S. Accounted for 39 pct of the total. The results were broadly in line with analysts' forecasts and the company's shares firmed in morning trading to 421p from 413p at Friday's close. The group ended the year with a cash surplus higher at 54 mln stg, compared to 26 mln previously, after capital expenditure which rose to 54 mln from 43 mln. In a statement, the company said the U.K. Agribusiness group reported excellent profits growth while health products profits rose to 6.5 mln from 5.4 mln.  
23-MAR-1987. 23-MAR-1987 
DRESDNER DECLINES COMMENT ON SCRIP SHARE REPORT. A Dresdner Bank AG <DRSD.F> spokesman said the bank had no comment on newspaper reports that shareholders would be offered free subscription shares. Dresdner shares surged to open 10.50 marks higher at 319.50, before climbing further. Other bank stocks also rose strongly and dealers cited speculation already in the market that Deutsche Bank AG <DBKG.F> would make a similar move. Such "scrip" issues, if they occurred, would mark the first time German banks had ever issued free shares. The varying reports said Dresdner shareholders may be offered one free share for every 15, 18 or 20 already held.  
JAMESWAY CORP SETS 2-FOR-1 STOCK SPLIT, UPS CASH PAYOUT 33 PCT.  JAMESWAY CORP SETS 2-FOR-1 STOCK SPLIT, UPS CASH PAYOUT 33 PCT  
<AMERICAN VARIETY INTERNATIONAL INC> NINE MTHS. March 31, 1986 end Shr loss seven cts vs loss 11 cts Net loss 76,888 vs profit 106,885 Revs 752,234 vs 922,036  
JAMESWAY <JMY> SETS SPLIT, HIGHER CASH PAYOUT. Jamesway Corp said its board declared a two for one stock split and increased the quarterly cash dividend by 33 pct. The company said the dividend on the pre-split shares was increased to four cts from three cts. It said both the split and the dividend are payable May 23 to holders of record April 20, adding the company will have about 13,860,000 shares outstanding after the split.  
HUMANA INC 2ND QTR SHR 44 CTS VS 54 CTS.  HUMANA INC 2ND QTR SHR 44 CTS VS 54 CTS  
HUMANA INC <HUM> 2ND QTR FEB 28 NET. Shr 44 cts vs 54 cts Net 42.9 mln vs 53.7 mln Revs 983.3 mln vs 858.8 mln Six mths Shr 85 cts vs 1.11 dlrs Net 83.1 mln vs 109.8 mln Revs 1.91 billion vs 1.66 billion  
WINCHELL'S DONUT <WDH> SETS INITIAL QUARTERLY. Winchell's Donut Houses LP said it has declared an initial quarterly dividend of 45 cts per unit on Class A and Class B limited partnership units, payable May 29 to holders of record March 31.  
TRITON GROUP LTD <TRRO> 4TH QTR JAN 31 NET. Oper shr profit nil vs loss nil Oper net profit 671,000 vs loss 138,000 Sales 104.3 mln vs 70.8 mln Avg shrs 101.2 mln vs 66.8 mln Year Oper shr profit six cts vs profit five cts Oper net profit 6,309,000 vs profit 5,144,000 Sales 349.8 mln vs 303.4 mln Avg shrs 85.0 mln vs 76.3 mln NOTE: Net excludes discontinued operations nil vs gain 196,000 dlrs in quarter and loss 293,000 dlrs vs gain 407,000 dlrs in year. Net excludes tax loss carryforward 1,423,000 dlrs vs reversal of tax credit 625,000 dlrs in quarter and credits 5,437,000 dlrs vs 7,261,000 dlrs in year. Results include U.S. Press Inc from November Three acquisition.  
AAR CORP <AIR> 3RD QTR FEB 28 NET. Shr 37 cts vs 32 cts Net 3,892,000 vs 2,906,000 Sales 71.8 mln vs 64.5 mln Nine mths Shr 1.08 dlrs vs 91 cts Net 10,946,000 vs 8,206,000 Sales 214.1 mln vs 179.4 mln Avg Shrs 10.5 mln vs 9.1 mln  
SUPERMARKETS GENERAL CORP 4TH QTR 50 CTS VS 52 CTS.  SUPERMARKETS GENERAL CORP 4TH QTR 50 CTS VS 52 CTS  
AMERICAN MOTORS CORP GETS QUALIFIED AUDIT ON 1986 FINANCIAL STATEMENTS.  AMERICAN MOTORS CORP GETS QUALIFIED AUDIT ON 1986 FINANCIAL STATEMENTS  
<ST . CLAIR PAINT AND WALLPAPER CORP> YEAR NET. Shr 66 cts vs 55 cts Net 2,422,000 vs 1,906,000 Revs 59.3 mln vs 47.4 mln  
AMERICAN MOTORS <AMO> STATEMENT QUALIFIED. American Motors Corp said its auditors qualified the company's 1986 financial report. The report was qualified due to uncertainties surrounding the previously announced arbitration award against American Motors' former subsidiary, AM General Corp. The award is being contested. The report was filed today with the Securities and Exchange Commission along with a copy of Chrysler Corp's <C> proposal to take over American Motors. American Motors said earlier than an arbitration award, made to Emerson Electric Co <EMR> in February, amounted to 60 mln dlrs plus legal expenses. American Motors has challenged the award. The automaker sold the AM General unit to LTV Corp <QLTV> in 1983, the same year it was awarded a five-year, 1.2 billion dlr procurement contract with the military. LTV and AM General last year sought protection under Chapter 11. The arbitration proceeding was called after Emerson Electric charged AM General violated an agreement covering the development of certain components in the contract. The components were for the military's "High Mobility Multi-Purpose Wheeled Vehicle" (HMMWV), American Motors said. In selling AM General to LTV, American Motors agreed to indemnify LTV against losses incurred by LTV resulting from the Emerson Electric claims. AMC also said the award has not been confirmed by a court, and faces additional legal challenges. It said that, because of the LTV and Am General reorganizations, the final amount of a confirmed award and the amount of any loss to LTV is uncertain.  
SUPERMARKETS GENERAL CORP <SGL> 4TH QTR JAN 31. Oper shr 50 cts vs 52 cts Oper net 19.2 mln vs 18.8 mln Sales 1.43 billion vs 1.30 billion Avg shrs 38.6 mln vs 36.0 mln Year Oper shr 1.65 dlrs vs 1.73 dlrs Oper net 62.7 mln vs 61.8 mln Sales 5.51 billion vs 4.96 billion Avg shrs 38.1 mln vs 35.8 mln NOTES: Sales are from continuing operations Operating net excludes results from discontinued operations of nil vs profit 2,815,000 dlrs, or eight cts a share, in quarter and loss 308,000 dlrs, or one cent a share, vs profit 1,880,000 dlrs, or five cts a share, in year Latest year operating net also excludes loss of 1,536,000 dlrs, or four cts a share, on disposal of discontinued department store segment Share data adjusted to reflect two-for-one stock split paid to holders of record August 1, 1986 Operating net includes pre-tax LIFO credit 700,000 dlrs vs credit 2.0 mln dlrs in quarter and charge 2.8 mln dlrs vs charge 4.9 mln dlrs in year  
RYLAND GROUP INC <RYL> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April 30 Record April 15  
H.B. FULLER CO <FULL> 1ST QTR FEB 28 NET. Shr 38 cts vs 30 cts Net 3,649,000 vs 2,789,000 Sales 137.4 mln vs 119.2 mln  
COOPER DEVELOPMENT CO <BUGS> 1ST QTR JAN 31 NET. Shr profit seven cts vs loss 16 cts Net profit 2,144,000 vs loss 4,110,000 Sales 121.3 mln vs 20.3 mln Avg shrs 29.4 mln vs 25.3 mln NOTE: Current year net includes pretax gain on sale of product line of 11.4 mln dlrs and charge 4,711,000 dlrs posttax on expensing of a portion of unamorized debt issuance costs of unit. Current year results include Technicon Corp, acquired in August 1986.  
CITIZENS GROWTH <CITGS> OMITS QUARTERLY DIVIDEND. Citizens Growth Properties said it ommitted its regular quartelry dividend as a result of decreased earnings, principally attributable to the default by a borrower of the trust's laargest mortgage loan. The trust last paid 12 cts on January 28. The trust said it also reaffirmed a limited share repurchase program subject to available cash flow in light of the defaulted mortgage.  
DYNAMIC HOMES INC <DYHM> 4TH QTR NET. Shr profit 0.2 cts vs loss 2.2 cts Net profit 2,900 vs loss 43,500 Sales 1,660,000 vs 950,000 Year Shr loss 30 cts vs loss 37 cts Net loss 578,900 vs 713,300 Sales 5,112,100 vs 3,659,600  
WESTWORLD COMMUNITY HEALTH <WCHI> 4TH QTR LOSS. Shr loss 15.23 dlrs vs profit 12 cts Net loss 124,634,000 vs profit 882,000 Revs 38.4 mln vs 41.0 mln Year Shr loss 15.46 dlrs vs profit 48 cts Net loss 126,434,000 vs profit 3,555,000 Revs 187.0 mln vs 133.2 mln Avg shrs 8,177,000 vs 7,450,000 Note: Current year results include charges related to closing or divestitures of facilities and other assets. Full name Westworld Community Healthcare Inc.  
KINGS ROAD ENTERTAINMENT INC <KREN> 3RD QTR NET. Shr loss seven cts vs loss 64 cts Net loss 367,000 vs 3,009,000 Revs 2,516,000 vs 8,787,000 Avg shrs 4,941,000 vs 4,714,000 Nine mths Shr loss 73 cts vs loss 1.17 dlrs Net loss 3,545,000 vs loss 4,573,000 Revs 6,788,000 vs 13.3 mln Avg shrs 4,856,000 vs 3,908,000 NOTE: Prior year net includes tax credits of 63,000 dlrs in quarter and 1,395,000 dlrs in nine mths.  
PAYCHEX INC <PAYX> 3RD QTR FEB 28 NET. Shr 13 cts vs 10 cts Net 1,109,000 vs 875,000 Revs 16.6 mln vs 13.2 mln Nine mths Shr 44 cts vs 33 cts Net 3,770,000 vs 2,851,000 Revs 46.9 mln vs 36.9 mln NOTE: Share adjusted for three-for-two stock split in June 1986.  
RELIABLE LIFE INSURANCE CO <RLIFA> YEAR NET. Shr 4.87 dlrs vs 2.21 dlrs Net 14.6 mln vs 6,639,540 NOTE: 1986 net includes gain 2,578,887 dlrs from chjange in accounting for pension plans and investment gaions of over three mln dlrs.  
RAVEN INDUSTRIES INC <RAV> 4TH QTR JAN 31 NET. Shr profit six cts vs loss nine cts Net profit 101,000 vs loss 142,000 Sales 12.6 mln vs 8,736,000 Year Shr profit 1.34 dlrs vs profit 1.02 dlrs Net profit 2,122,000 vs profit 1,611,000 Sales 52.3 mln vs 41.9 mln  
HEMODYNAMICS INC <HMDY> YEAR LOSS. Shr loss 24 cts vs loss 41 cts Net loss 148,070 vs loss 251,225 Sales 1,298,257 vs 319,588  
MOTO PHOTO INC <MOTO> 4TH QTR NET. Oper shr profit one ct vs loss six cts Oper net profit 148,628 vs loss 249,192 Revs 3,772,639 vs 1,101,633 Avg shrs 5,235,233 vs 4,371,795 Year Oper shr loss 10 cts vs loss 19 cts Oper net profit 5,760 vs loss 788,042 Revs 9,899,038 vs 3,819,678 Avg shrs 4,837,361 vs 4,163,006 NOTE: Share after poreferred dividends. Current year net both periods excludes 15,000 dlr tax loss carryforward.  
TONKA <TKA> SEES LOWER FISCAL FIRST QUARTER NET. Tonka Corp said it expects results for its fiscal first quarter to end April four, to decline from the record earnings of 3.8 mln dlrs or 57 cts a share and revenues of 53.2 mln dlrs. The toy manufacturer attributed its anticipated lower financial results to an an expected moderate decline in shipments of its Pound Puppies product line. Tonka also said it expects revenues and earnings to remain lower through the 1987 first half compared with 1986 record results of 125.4 mln dlrs in revenues and 10.3 mln dlrs in net earnings or 1.47 dlrs a share. The company said its level of shipments is good despite a conservative buying pattern on the part of retailers industry wide. Tonka's first quarter shipments will be down somewhat from 1986 record levels and gross profit margins will be down slightly from a year ago, it said. Second half sales are expected to be stronger based on a return to a more traditional seasonal shipping pattern in which retailers order and stock conservatively early in the year and time large shipments for the second half, it said. Tonka said that while the pace of order writing is trailing last year's, bookings are "very good" for orders on several of its new product introductions for 1987.  
CHILD WORLD INC <CWLD> 4TH QTR JAN 31 NET. Shr 1.34 dlrs vs 1.09 dlrs Net 15.4 mln vs 12.6 mln Sales 323.6 mln vs 240.2 mln Avg shrs 11.5 mln vs 11.5 mln Year Shr 95 cts vs 91 cts Net 10.9 mln vs 9,368,000 Sales 628.8 mln vs 513.1 mln Avg shrs 11.5 mln vs 10.3 mln NOTE: Latest year net cut on mln dlrs by investment tax credit loss.  
BAYERNVEREIN EXPECTS UNCHANGED DIVIDEND FOR 1987. Bayerische Vereinsbank AG <BVMG.F> expects to pay an unchanged dividend of 13 marks on 1987 earnings but profits will only barely reach last year's record levels, management board spokesman Maximilian Hackl said. He told the annual news conference that possible credit risks, especially those associated with foreign nations, had largely been covered. Risk provisions in 1987 were therefore unlikely to reach the same high level as in 1986. Group bank net profit rose to 275.52 mln marks in 1986 from 222.73 mln the previous year and parent bank net profit increased to 187.63 mln marks from 161.58 mln. Hackl said that interest margins in the banking business had declined to 2.71 pct last year from 2.78 pct the previous year. But in the mortgage sector, the margins had increased slightly and stood around 0.7 pct. Parent bank commission surplus in the securities business had risen almost 15 pct to 358 mln marks in 1986. Expenses for personnel had increased 7.5 pct to 782 mln marks and others costs had increased 9.4 pct to 272 mln marks. The parent bank's 1986 partial operating profit, which excludes earnings from trading on its own account, had climbed two pct to 671 mln marks. The parent bank's balance sheet total rose 5.3 pct to 81.5 billion marks at end-1986 compared with end-1985, Hackl said. It was boosted by a three billion mark rise in mortgage business and a 1.1 billion mark increase in banking business. The mortgage sector's share in total parent bank business volume rose to 46 pct from 45. Hackl said that in January and February this year, the bank's credit business had not livened up. But despite the sharp downturn on German bourses, profits from trading on own account had increased in the first two 1987 months compared with the same year-ago period. He gave no detailed figures.  
DYNAMIC HOMES INC <DYHM> 4TH QTR NET. Shr nil vs loss two cts Net profit 2,900 vs loss 43,500 Revs 1,660,300 vs 950,000 12 mths Shr loss 30 cts vs loss 37 cts Net loss 578,900 vs loss 713,300 Revs 5,112,100 vs 3,659,600  
<CANADA LEASE FINANCING LTD> 3RD QTR DEC 31 NET. Shr 30 cts vs 12 cts Net 727,000 vs 266,000 Revs 27.8 mln vs 21.1 mln Nine mths Shr 59 cts vs 48 cts Net 1,355,000 vs 1,098,000 Revs 69.4 mln vs 59.1 mln  
PUBLIC SERVICE N.C. <PSNC> RAISES PAYOUT. Public Service Co of North Carolina Inc said its board raised the quarterly dividend to 23 cts per share from 22-1/2 cts previously, as adjusted for a two-for-one stock split that takes effect April 27. The dividend is payable July One to holders of record June 16. The company also said it plans to file soon for an offering of  up to one mln new shares, which would give it a total of about 8,850,000 post-split shares.  
WICKES <WIX> PLANS REVERSE SPLIT, CALLS DEBT. Wickes Cos Inc said its board authorized a one-for-five reverse stock split and plans to call the company's its 12 pct senior subordianted debentures due 1994. The company said it will seek shareholder approval of the reverse stock split at the annual shareholders meeting scheduled for June 18. At January 31 Wickes had 239 mln shares outstanding, the company also said. Wickes also said it will call the debentures on Dec 1, 1987, assuming market conditions remain essentially the same.  
MOTO PHOTO <MOTO> SEES BETTER 1ST QUARTER 1987. Moto Photo Inc  president, Michael Adler, said he expects the company's first quarter earnings for fiscal 1987 to be better than the same quarter a year ago. Adler said, however, that the quarter would still be a loss, primarily because it is the low season for the imaging business. Photo Moto recored a net loss for the first quarter 1986 ending March 31 of 328,889 dlrs.  
CANADA SOUTHERN PETROLEUM LTD<CSW> 2ND QTR LOSS. Qtr ends Dec 31 Shr loss one ct vs profit two cts Net loss 52,922 vs profit 220,041 Revs 481,832 vs 824,554 Six mths Shr loss one ct vs profit four cts Net loss 104,129 vs profit 345,515 Revs 934,685 vs 1,465,153  
RECOTON CORP <RCOT> 4TH QTR LOSS. Shr loss 14 cts vs profit 26 cts Net loss 384,000 vs profit 714,000 Revs 8,367,000 vs 9,909,000 Year Shr profit 19 cts vs profit 57 cts Net profit 518,000 vs profit 1,547,000 Revs 28.7 mln vs 26.7 mln NOTE: Includes income tax credits of 302,000 dlrs and 1.3 mln dlrs in 1986 and 1985, respectively, and 602,000 dlrs in 1985 qtr. Current qtr after tax provision of 452,000 dlrs.  
SANFORD CORP <SANF> 1ST QTR FEB 28 NET. Shr 28 cts vs 13 cts Net 1,898,000 vs 892,000 Sales 16.8 mln vs 15.3 mln  
<CANADA SOUTHERN PETROLEUM LTD> 2ND QTR LOSS. Period ended December 31, 1986 Shr loss one ct vs profit two cts Net loss 52,922 vs profit 220,041 Revs 481,832 vs 824,554 Six mths Shr loss one ct vs profit four cts Net loss 104,129 vs profit 345,515 Revs 937,685 vs 1,460,000  
HOSPOSABLE PRODUCTS INC <HOSP> 4TH QTR NET. Shr 12 cts vs eight cts Net 102,002 vs 59,396 Sales 3,024,423 vs 2,437,489 Avg shrs 1,032,000 vs 746,004 Year Shr 64 cts vs 45 cts Net 570,491 vs 340,852 Sales 11.1 mln vs 10.6 mln Avg shrs 1,032,000 vs 753,948  
MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION. McDonald's Corp rose sharply today after receiving a second recommendation in as many sessions, traders said. Today, analyst Richard Simon of Goldman Sachs and Co reaffirmed his recommendation of the stock and put it on his "focus list," traders familiar with the recommendation said. Simon was unavailable for comment. The stock jumped 2-3/4 to 79-7/8. On Friday, analyst Daniel Lee of Drexel Burnham Lambert Inc reiterated a recommendation of the stock focusing on increased comparable store sales and consistent annual earnings growth. Friday, the stock closed 1-5/8 points higher. Wendy's, another operator of fast food restaurants, rose one to 12-3/4 in active trading. Vague rumors that Wendy's is a takeover candidate continued to circulate Wall Street, traders said.  
ALLIED PRODUCTS CORP <ADP> YEAR NET. Shr 3.36 dlrs vs 3.33 dlrs Net 16,173,000 vs 10,603,000 Sales 420.8 mln vs 276.1 mln Avg shrs 4.4 mln vs 3.2 mln NOTE: 1985 net includes tax credits of 6.9 mln dlrs or 2.19 dlrs a share.  
NEW BRUNSWICK SCIENTIFIC CO INC <NBSC> 4TH QTR. Shr 22 cts vs six cts Net 819,000 vs 201,000 Revs 9.3 mln vs 7.7 mln Year Shr 40 cts vs 20 cts Net 1.5 mln vs 728,000 Revs 31.5 mln vs 26.6 mln  
INTELLIGENT BUSINESS <IBCC> 1ST QTR JAN 31. Shr three cts vs nil Net 328,112 vs 6,374 Revs 1,401,155 vs 846,253 NOTE: Full name is Intelligent Business Communications Corp  
LOWE'S COS INC <LOW> QTLY DIV. Qtly div 10 cts vs 10 cts prior Payable April 30 Record April 10  
COMPUTER DEVICES INC 4TH QTR. Shr loss one cnt vs profit one cnt Net loss 35,000 vs profit 42,000 Revs 881,000 vs 1.3 mln Year Shr profit seven cts vs profit nine cts Net profit 291,000 vs profit 366,000 Revs 4.4 mln vs 5.9 mln NOTE:1985 4th qtr and year includes gain of 7,000 dlrs and 147,000 dlrs respectivley. 1986 year includes gain of 35,000 dlrs from tax loss carryforwards.  
DUCOMMON INC <DCO> 4TH QTR LOSS. Oper shr loss 5.60 dlrs vs loss 1.10 dlrs Oper net loss 18,688,000 vs loss 3,662,000 Sales 107.3 mln vs 108.7 mln Year Oper shr loss 5.76 dlrs vs loss 98 cts Oper net loss 19,213,000 vs loss 3,263,000 Sales 455.2 mln vs 417.0 mln Note: Prior qtr and year figures exclude losses from discontinued operations of 279,000 dlrs and 555,000 dlrs, respectively and respective losses on sale of discontinued operations of 14.6 mln dlrs and 15.9 mln dlrs.  
MEM COM INC <MEM> 4TH QTR NET. Oper shr 93 cts vs 32 cts Oper net 2,443,810 vs 847,609 Revs 30.3 mln vs 21.0 mln 12 mths Oper shr 1.16 dlrs vs 85 cts Oper net 3,066,407 vs 2,250,781 Revs 70.9 mln vs 61.8 mln NOTE: qtr 1985 excludes gain 96,327 dlrs for discontinued operations of Lebanon Packaging. Year 1986 and year prior excludes loss 62,216 dlrs, and gain 281,367 dlrs, respectively, for discontinued operations on Lebanon sale.  
SWEET VICTORY INC <SVIC> YEAR. Shr loss 1.16 dlrs vs loss 61 cts Net loss 3.5 mln vs loss 1.3 mln Revs 943,938 dlrs vs 480,333 dlrs  
ASTROCOM CORP <ACOM> 4TH QTR NET. Shr one ct vs five cts Net 19,174 vs 118,671 Revs 3,127,162 vs 2,936,330 Year Shr eight cts vs 30 cts Net 198,290 vs 712,087 Revs 12.4 mln vs 11.6 mln Avg shrs 2,603,588 vs 2,376,604  
JUNO LIGHTING INC <JUNO> 1ST QTR FEB 28 NET. Shr 43 cts vs 32 cts Net 1,991,000 vs 1,485,000 Sales 11.7 mln vs 9,479,000  
PIONEER SYSTEMS INC <PAE> YEAR NOV 29 LOSS. Oper shr loss five cts vs loss 1.28 dlrs Oper net loss 155,000 vs loss 3,982,000 Sales 37.1 mln vs 34.2 mln NOTE: Net excludes losses from discontinued fabric finishing operations of 3,431,000 dlrs vs 5,910,000 dlrs.  
AMERICAN SHARED HOSPITAL SERVICES <AMSH> YEAR. Period ended December 31. Shr profit 11 cts vs loss 24 cts Net profit 224,271 vs loss 511,349 Revs 7,258,688 vs 7,200,349  
GEO. A. HORMEL AND CO <HRL>. Qtly div 15 cts vs 15 cts previously Pay May 15 Record April 18  
INITIALS PLUS <IINC> SEES SHARP SALES INCREASE. Initials Plus said it expects sales in the year ending January 31, 1988 to exceed 10 mln dlrs. The company had sales last year of 256,000 dlrs. Initials said it expects to turn profitable some time in 1988 and sees sales of 100 mln dlrs annually by the end of 1989. The company said it now has over 100 personal retailers marketing its products and expects to have more than 1,000 by the end of 1987.  
PATIENT TECHNOLOGY INC <PTI> YEAR LOSS. Shr loss 12 cts vs loss 63 cts Net loss 596,000 vs loss 2,934,000 Revs 7,261,000 vs 6,600,000 Year Oper shr loss 14 cts vs loss 1.28 dlrs Oper net loss 683,000 vs loss 5,824,000 Revs 29.8 mln vs 22.7 mln Avg shrs 4,930,000 vs 4,546,000 NOTE: Year net excludes losses from discontinued operations of 764,000 dlrs vs 5,152,000 dlrs.  
GEMINI TECHNOLOGY INC <GMTIF> YEAR LOSS. Shr loss 74 cts Net loss 4,192,613 Revs 2,928,021 Note: 1986 net includes 3,095,000 dlr write-off tied to discontinuation of emulator board production. Co's 1st fl-yr of operation.  
SOCIETE GENERALE REPORTS HIGHER 1986 PROFITS. France's Societe Generale <SGEN.PA> bank, which will be sold to the private sector in the second half of this year, reported increased profits for last year. Societe Generale, one of the three largest state-owned banking groups, said in a statement that its parent company profit for 1986 totalled 800 mln francs, up 21.2 pct on 1985's 660 mln profit. This was in line with earlier forecasts of profit of between 770 and 800 mln francs. The bank's parent company gross operating profits were up 5.4 pct at 21.34 billion francs against 20.24 billion in 1985. The increase in the bank's gross operating profits was mostly due to a rise in french franc deposits and personal loans as well as the development of its financial activities, Societe Generale said. Parent company net banking earnings last year were also up at 13.9 billion francs compared with 13.57 billion in 1985 while operating costs totalled 7.44 billion francs against 6.67 billion the previous year. Societe Generale President Marc Vienot said in December he expected group 1986 consolidated profits to rise to between 2.5 billion and 2.6 billion francs from 1.62 billion in 1985.  
UNIFORCE TEMPORARY <UNFR> SETS SPLIT. Uniforce Temporary Personnel Inc said it declared a three-for-two stock split, payable May 15 to stockholders of record April 14.  
MANHATTAN NATIONAL CORP <MLC> 4TH QTR LOSS. Oper shr loss 20 cts vs loss 81 cts Oper net loss 1,042,000 vs loss 4,077,000 Revs 38.5 mln vs 50.3 mln 12 mths Oper shr loss six cts vs loss 43 cts Oper net loss 336,000 vs loss 2,176,000 Revs 137.8 mln vs 209.1 mln NOTE: qtrs 1986 and prior exclude net realized investment gains of 74,000 dlrs and 644,000 dlrs, respectively, and years 1986 and prior exclude realized investment gains of 642,000 dlrs and 1,979,000 dlrs, respectively.  
KIDDIE PRODUCTS INC <KIDD> YEAR NET. Shr 1.25 dlrs vs 1.14 dlrs Net 472,254 vs 446,805 Revs 21.4 mln vs 19.4 mln  
BANCA D'AMERICA E D'ITALIA 1986 YEAR. Net profits for year ended December 31 1986 1.3 billion lire vs 47.3 billion Deposits from clients 3,691.0 billion lire vs 3,419.0 billion Loans to clients 2,448.0 billion lire vs 2,181.5 billion Note: The bank, sold by Bankamerica Corp <BK.N> last December to West Germany's Deutsche Bank AG <DBKG.F>, said the sharp fall in net profit reflected various factors including higher set-asides for risk coverage and a high tax burden.  
SECURITY CAPITAL <SCC> SUSPENDS DIVIDENDS. Security Capital Corp said it has suspended quarterly cash dividend payments indefinitely. The company also said its board has withdrawn authroization for the company to buy its stock on the open market. Its previous dividend payment was five cts on February 24. Security Capital said this action was taken in response to its continuing operating losses, primarily at Benjamin Franklin Savings Association, a Houston-based subsidiary.  
AUDITORS LIFT QUALIFICATION ON BRUNSWICK <BC>. Auditors of Brunswick Corp lifted a four year qualification on the company's financial statements, vice president-finance Frederick Florjancic told securities analysts here. The financial results for the diversified leisure and defense/aerospace company had been qualifed by Arthur Andersen and Co since 1982. The qualification related to certain tax liabilities, amounting to 65 mln dlrs, associated with a medical division sold by Brunswick in 1982, he said.  
ALC COMMUNICATIONS CORP <ALCC> 1986 LOSS. Shr loss 4.63 vs loss 2.43 Net loss 60,780,000 vs loss 28,898,000 Rev 499.7 mln vs 432.1 mln NOTE: 1986 net includes loss of 49.9 mln dlrs for restructuring charges.  
LESCO INC <LSCO> 1ST QTR FEB 28 LOSS. Shr loss 24 cts vs profit three cts Net loss 982,779 vs profit 104,418 Revs 11.2 mln vs 12.3 mln  
SEISMIC ENTERPRISES INC <SEIS> 4TH QTR LOSS. Shr loss eight cts vs profit 10 cts Net loss 714,905 vs profit 889,679 Revs 1,091,461 vs 3,156,569 Year Shr loss five cts vs profit 22 cts Net loss 422,037 vs profit 1,850,637 Revs 6,642,490 vs 7,948,312 Avg shrs 8,808,323 vs 8,412,822  
ALC <ALCC> ANTICIPATES 1ST QTR PROFIT. ALC Communications Corp said that because of strong traffic growth and cost reductions it anticipates reporting a profit for the first quarter of 1987, versus a loss of 1.4 mln dlrs, or 15 cts a share, for the first quarter of 1986. Earlier, the company reported a net after-tax loss for 1986 of 60.8 mln dlrs, or 4.63 dlrs a share, compared with a loss of 28.9 mln dlrs, or 2.43 dlrs a share, in 1985.  
VARLEN CORP <VRLN> DECLARES QTLY DIVIDEND. Qtly div 15 cts vs 15 cts prior Pay April 30 Record April 15  
ANALYSIS AND TECHNOLOGY INC <AATI> HIKES PAYOUT. Annual div 11 cts vs 10 cts prior Pay April 24 Record March 31  
PRIMARK CORP <PMK> REGULAR DIVIDEND. Qtly div 32.5 cts vs 32.5 cts in prior qtr Payable Mary 15 Record April 15  
SAXON OIL DEVELOPMENT PARTNERS <SAX> IN PAYOUT. Qtly div two cts vs two cts prior Pay May 15 Record March 31 NOTE: Full name Saxon Oil Development Partners LP.  
IBM <IBM> REBOUND SEEN BY BERNSTEIN ANALYST. International Business Machines Corp, hit by a two-year earnings slump, should begin a come-back by the end of 1987 and post strong growth in 1988, analyst Rick Martin of Sanford C. Bernstein Co Inc said. "There will be increasing momentum in earnings, albeit not until later this year," Martin said at a technology conference sponsored by the investment firm. Martin said the coming rebound reflects new product introductions in the mid-range area, rather than any drastic improvement in economic growth or U.S. capital spending. IBM, whose stock hit a 52-week low of 115-3/4 dlrs in mid-January, has come back lately. IBM was trading up 7/8 at 149-1/2 dlrs. Analysts, computer industry executives, and the company itself, have highlighted the external economic factors hampering IBM's growth. But Martin said the product cycle was key to understanding the rise and fall of IBM and other computer companies, and pointed to Digital Equipment Corp <DEC> to support his view. "By replacing the product line, earnings have soared," he said of DEC's line of VAX computers. In contrast to DEC, IBM faultered with an incompatible mid-range product line. A new computer code-named "Fort Knox" was supposed to tie together a number of IBM's mid-range systems, but the product never got off the ground, he said. Instead, aspects of the computer were integrated into the IBM 9370 machine introduced last year, and other aspects should be unwrapped by 1988, Martin said. "The major story will be a rebound in its mid-range business." He said sales of IBM's mid-range computers fell about 13 pct in 1986. But the new products will lead to 5.8 pct growth in mid-range computers this year and 30.7 pct growth in 1988. High-end computers, primarily the Sierra line, are coming to the end of their product life cycle. Although growing 22.5 pct in the midst of IBM's sharply lower 1986 year, growth will drop to 1.5 pct in 1987 and 1.9 pct in 1988, he said. By 1988, overall revenue growth should rise to about 16 pct, against 5.8 pct growth in 1987 and 2.4 pct in 1986, Martin said. Last year, IBM earned 4.8 billion dlrs on revenues of 51.3 billion dlrs. Investors asked what this all meant to DEC, whose earnings and stock have been propelled by a strong slew of product introductions in the mid-range area. In response, Martin said he did not view IBM as a threat to DEC, nor DEC as a threat to IBM, because both companies were catering largely to existing customer bases, rather than stealing market share from one another.  
BRUNSWICK <BC> SEES HIGHER 1987 FIRST QUARTER. Brunswick Corp expects 1987 first quarter sales to be up "dramatically" and profits to "do well," chairman and president Jack Reichert said after a securities analysts meeting. He declined to be more specific. In the 1986 first quarter, Brunswick reported earnings of 23.8 mln dlrs or 57 cts a share on sales of 396.7 mln dlrs. Reichart noted that results of its two newly-acquired boat manufacturing companies will be included in the company's first quarter report. Brunswick expects its recreation centers to benefit from increased attention to the sport of bowling resulting from acceptance in the 1988 Summer Olympics of bowling as an exhibition sport and as a medal sport in the 1991 Pan American Games, he said. He said field testing of a new bowling concept involving electronic features is being readied for test marketing this summer, and if successful, could "materially benefit" operations. Brunswick is currently test marketing in California a health club facility adjoining a bowling center, he said. Turning to its defense operations, Reichert said he expects the division to receive significant contracts in the near future. At 1986 year end, Brunswick's defense contract backlog stood at 425 mln dlrs. Frederick Florjancic, vice president-finance, told analysts Brunswick was disappointed two credit rating services recently downgraded the company's debt which stood at about 665.4 mln dlrs at 1986 year end. "We are confident we can service our debt and bring it down in the very near term," based on strong cash flow from Brunswick's expanded boat operations, Florjancic said. Shareholders at the company's April 27 annual shareholders meeting will be asked to approve an increase in the authorized common shares outstanding to 200 mln from 100 mln shares, a company spokesman said.  
WEATHERFORD <WII> SUSPENDS PREFERRED PAYOUTS. Weatherford International said it suspended indefinitely payment of its regular quarterly dividend of 65.6 cts per share on its 2.625 convertible exchangeable cumulative preferred stock. Weatherford said this will be the sixth non-payment of the dividend on the stock. It said payment would have been on April 15, 1987. Weatherford also said the holders of the preferred stock will have the right to elect two additional directors to the board of directors.  
CLUB MED INC <CMI> 1ST QTR JAN 31 NET. Shr 41 cts vs 38 cts Net 5,630,000 vs 5,152,000 Revs 97.1 mln vs 85.4 mln  
DRIVER-HARRIS CO <DRH> 4TH QTR NET. Shr profit 22 cts vs loss 2.15 dlrs Net profit 271,000 vs loss 2,530,000 Revs 16.3 mln vs 15.2 mln Avg shr 1,238,000 and 1,177,000 12 mths Shr profit 82 cts vs loss 2.14 dlrs Net profit 982,000 vs loss 2,517,000 Revs 66.5 mln vs 64.5 mln Avg shrs 1,193,000 vs 1,177,000 NOTE: net loss 1985 yr and qtr includes a charge of 1,042,000, or 89 cts per share, for expenses related to restructuring of company's domestic alloy business.  
COOPER DEVELOPMENT <BUGS> RESTATES RESULTS. Cooper Development Co said it revised results for the year ended October 31 to a loss of 61.7 mln dlrs, or 2.33 dlrs per share, down from the previously-reported loss of 12.1 mln dlrs, or 46 cts per share. The restatement was made because of change in the method of accounting for a combination of several company-controlled concerns that resulted in a 53.5 mln dlr charge, Cooper Development said. Last August Cooper Development combined its Cooper Biomedical Inc unit and its Cooper Laboratories subsidiary with Technicon Instruments Corp, a company acquired from Revlon Inc <REV>, a Cooper spokesman said. The spokesman said the transaction was accounted for as an acquisition, but the Securities and Exchange Commission took issue with the accounting method and said it should be accounted for as a reorganization of entities under common control. This treatment requires that the costs associated with the transaction be expanded rather than capitalized as an intangible asset, the company said. It also said that, since the charged required an expensing of previously accrued liabilities, the company will experience no resulting material change it its cash flow.  
AMBRIT INC <ABI> 4TH QTR JAN 31 NET. Shr 28 cts vs nil Net 3,614,000 vs 7,000 Revs 37.5 mln vs 7,835,000 Year Shr 13 cts vs nil Net 1,601,000 vs 30,000 Revs 145.5 mln vs 51 mln NOTE: Per share amounts are after payment of preferred stock dividends.  
<ATLANTIS INTERNATIONAL LTD> YEAR LOSS. Shr loss 35 cts vs profit six cts Net loss 3,555,293 vs profit 649,715 Revs 4,451,732 vs 3,910,652 Note: 1986 net includes 3.7 mln dlr writedown of oil and gas properties.  
AMERICAN EXPRESS DECLARED A TWO-FOR-ONE STOCK SPLIT.  AMERICAN EXPRESS DECLARED A TWO-FOR-ONE STOCK SPLIT  
AMERICAN EXPRESS RAISES QTLY DIVIDEND TO 38 CTS FROM 36 CTS.  AMERICAN EXPRESS RAISES QTLY DIVIDEND TO 38 CTS FROM 36 CTS  
UNITED ILLUMINATING CO <UIL> TWO MONTHS FEB 28. Shr 1.51 dlr  vs 1.08 dlr Net 23.1 mln vs 18.2 mln Oper revs 81.1 mln vs 86.5 mln 12 mths Shr 6.41 dlrs vs 5.77 dlrs Net 106.5 mln vs 99.2 mln Oper revs 465.8 mln vs 509.8 mln NOTE: 1987 periods do not reflect the terms of earnings stipulation agreement among the company and various departments submitted for approval on March 18.  
DATA CARD <DATC> SEES LOWER YEAREND RESULTS. Data Card Corp said it does not expect to meet its earnings and revenue targets for the fiscal year ending March 28. Earlier, the company said it expected earnings per share from continuing operations to be 35 to 45 cts a share. Now it sees that figure at 15 cts a share, or about 1.5 mln dlrs. Data Card said it expects revenues for the year in the range of 170 mln to 175 mln dlrs, down from a previous estimate of 180 mln to 185 mln dlrs. It said integration of Addressograph Farrington Inc, a private company acquired on Aug 25, 1986, is proving more difficult than expected. The company reported revenues of 154 mln dlrs and net income of 10.6 mln dlrs in fiscal 1986 ended March 26, 1986.  
LINCOLN SAVINGS <LNSB> SETS FIRST PAYOUT. Lincoln Savings Bank said its board declared an initial dividend of 10 cts per share, payable April 17 to shareholders of record April 10.  
UNITED <UIL> PACT MAY LOWER NONCASH INCOME. United Illuminating Co said that if the Department of Utility Controls approves an earnings stipulation agreement submitted March 18, it will reduce through accounting procedures its 1987 noncash earnings by 16 mln dlrs or 1.15 dlr per share. For the two month period ended February 28, 1987, it said the amount of the reduction would amount to 19 cts per share. Earlier, it reported net income for the two-month period of 23.1 mln dlrs of 1.51 dlr a share. United said the approval would lead it to an equity return level comparable with the electric utility industry average.  
CAMPBELL RED LAKE MINES LTD <CRK> QTLY DIV. Qtly div 10 Canadian cts vs 10 Canadian cts prior Pay May 25 Record April 20  
STOKELY USA INC <STKY> REGULAR DIVIDEND SET. Qtly div three cts vs three cts previously Pay April 15 Record April One  
KINGS ROAD ENTERTAINMENT <KREN> 3RD QTR LOSS. Qtr ended Jan 31 Shr loss seven cts vs loss 64 cts Net loss 367,000 vs loss 3,009,000 Revs 2,516,000 vs 8,787,000 Nine mths Shr loss 73 cts vs loss 1.17 dlrs Net loss 3,545,000 vs loss 4,573,000 Revs 6,768,000 vs 13.3 mln  
STERIVET LABS <STVTF> SETS STOCK SPLIT. Sterivet Laboratories Ltd said it authorized a three-for-one split of its common stock. The company said the stock split is subject to approval by its shareholders at its upcoming annual meeting.  
TCBY ENTERPRISES INC <TCBY> 1ST QTR FEB 28 NET. Shr eight cts vs five cts Net 1,370,898 vs 823,988 Sales 7,786,730 vs 4,383,825 Avg shrs 17,744,333 vs 17,071,236 NOTE: Per-share amounts adjusted for three-for-two stock splits in April and July, 1986  
SPRINT OPTIMISTIC DESPITE LOSSES. US Sprint, the 50-50 telephone venture of GTE Corp <GTE> and United Telecommunications Inc <UT> set up last June, is optimistic despite expecting to report a net loss of about 500 mln dlrs this year. David M. Holland, president of US Sprint's Dallas-based Southwest Division, told Reuters in an interview that he did not know what it would report for the first quarter, but agreed that for the year the company should have about the same results as last year when it lost "about 500 mln dlrs." He noted the company was slated to spend 2.3 billion dlrs over "two plus years" to set up its network.  Holland added that Sprint was still paying almost 500 mln dlrs a year to American Telephone and Telegraph Co (T) in order to lease its lines. He said 16,000 miles of its 23,000 mile fiber optic telephone line are now "in the ground," and 7,000 miles are operable. By the end of the year, he said, 90 pct of the company's subscribers will be carried on its fiber optic lines (instead of leased ATT lines), compared with 60 pct by the end of the second quarter. Fiber optic lines, which send digital light impulses along microscopic glass lines, is quicker, more accurate and more economical than traditional copper cables. A fiber optic line the diameter of a dime can carry the same amount of information as a copper cable 20 feet in diameter. "By the end of the year, we will have the capacity to carry 50 pct of all U.S. long distance phone calls," Holland said. He said ATT currently controls about 80 pct of the U.S. long distance market, with MCI Communications Corp <MCIC> about 10 to 12 pct and Sprint five to seven pct. Holland said Sprint's rates, which were 50 pct lower than ATT when it did not pay to gain access to local telephone exchanges, were now about 10 to 12 pct lower now that all the companies have equal access. He said the company was cutting back its advertising by about 30 pct this year. At the same time, he said Sprint had increased its total number of customers to four mln from two mln from July 1986 to last January. "We've captured the fiber high ground, shown the importance of it," he said. Concerning the deregulation of ATT, Holland said he believed ATT "should be given some flexibility, but should be regulated on pricing plans." "They're so dominant in the market place," he said, adding that ATT should be deregulated when "there is true competition in the marketplace." "It takes time to prove ourselves and a lot of money," he said, adding, "maybe two to four years out, it's hard to say." Holland said he was not concerned about talk that Sprint's two owners might be squabbling or that corporate raiders, such as the Belzberg family in Canada, might be putting pressure on them to sell off their loss-making Sprint holdings. "They are two excellent partners who have stated time and time again their support of US Sprint," he said, adding that he was "amazed" at industry talk that the two companies might be arguing. "There's no evidence of that," he said. He said Sprint's progress in such areas as revenues, number of customers and construction was on track, even "ahead in many areas." Looking beyond the United States, Holland said Sprint currently had direct access to 34 countries and aimed to be in 90 pct of the Free World nations by 1988. "We want to be in every country that ATT serves," he said. He said Sprint currently does not have access to Mexico but was working on it. He noted negotiations between Mexico and GTE Sprint, the forerunner of US Sprint, had been broken off by the September 1985 earthquake which had devastated the nation's telephone network.  
CLABIR CORP <CLG> 4TH QTR JAN 31 NET. Shr profit 26 cts vs loss two cts Net profit 6,194,000 vs loss 170,000 Revs 100.0 mln vs 7,854,000 Avg shrs 10.7 mln vs 8,787,977 Year Shr profit two cts vs loss 17 cts Net profit 7,169,000 vs loss 1,461,000 Revs 421.4 mln vs 51.1 mln Avg shrs 9,604,474 vs 8,807,709  Reuter...  
BAY FINANCIAL CORP <BAY> 3RD QTR FEB 28. Shr loss 1.34 dlrs vs profit two cts Net loss 4.5 mln vs profit 46,000 Revs 7.6 mln vs 8.9 mln Nine months Shr loss 1.41 dlrs vs loss two cts Net loss 4.7 mln vs loss 76,000 Revs 30.2 mln vs 23.8 mln NOTE:1986 includes gain on disposition of investments of 2,454 dlrs in 3rd qtr and 5,306 dlrs in nine months respectively. 1987 includes gain on disposition of investments of five dlrs in 3nd qtr and 7,052 dlrs in nine months.  
CORRECTED - MANHATTAN NATIONAL<MLC>4TH QTR LOSS. Oper shr loss 20 cts vs loss 81 cts Oper net loss 1,042,000 vs loss 4,077,000 Revs 38.5 mln vs 50.3 mln 12 mths Oper shr profit six cts vs loss 43 cts Oper net profit 336,000 vs loss 2,176,000 Revs 137.8 mln vs 209.1 mln (Company corrects to show profit rather than a loss for current 12 mths oper shr and oper net.)  
AMBRIT INC <ABI> 4TH QTR JAN 31 NET. Shr 28 cts vs nil Net 4,568,000 vs 7,000 Revs 37.5 mln vs 7,835,000 Year Shr 13 cts vs nil Net 5,011,000 vs 30,000 Revs 145.5 mln vs 51.0 mln Note: Current year results includes revs of 87.2 mln dlrs from Chocolate Co Inc, which was acquired in March 1986. Note: Shr results after preferred dividend payments of 954,000 dlrs for current qtr and 3,410,000 dlrs for current year. Net includes gains from sale of investment in Sheraton Securities International of 5,807,000 dlrs vs 928,000 dlrs for qtr and 8,705,000 dlrs vs 928,000 dlrs for year. Net also includes extraordinary loss from early retirement of debt of 303,000 dlrs for year-ago 12 mths.  
COMMUNICATIONS CORP OF AMERICA 2ND QTR DEC 31. Shr loss 33 cts vs loss 48 cts Net loss 1.7 mln vs loss 2.5 mln Revs 6.3 mln vs 10.2 mln Six months Shr loss 54 cts vs loss 75 cts Net loss 2.8 mln vs loss 3.9 mln Revs 15.2 mln vs 23.4 mln  
SWIRE SEEN REPORTING 20 PCT RISE IN 1986 PROFIT. Swire Pacific Ltd <SWPC.HKG> is likely to show a more than 20 pct rise in 1986 operating profits when it reports results tomorrow, reflecting gains in its aviation and property businesses, share analysts said. Analysts polled by Reuters estimated after-tax profits from operations will be between 1.525 billion and 1.8 billion dlrs compared with 1.23 billion in 1985. They also said Swire will have an extraordinary gain of about 1.38 billion dlrs from the flotation of its Cathay Pacific Airways Ltd <CAPH.HKG> unit last May. Swire had an extraordinary gain of 59.1 mln dlrs in 1985. Share analysts said Swire will set a 36 cent final dividend for its "A" shares, making a total of 54 cents, after 47 cents adjusted for a two-for-one bonus issue in 1985. Aviation and properties together account for 75 pct of the company's net asset value and about 85 pct of its net profits, analysts said. The company's aviation division consists of its majority stake in Cathay Pacific Airways Ltd and its 25 pct interest in <Hongkong Aircraft Engineering Co Ltd>, which is also 25 pct owned by Cathay. Cathay last week reported 1986 profits climbed to 1.23 billion dlrs from 777 mln in 1985, partly because of lower fuel costs and greater traffic. Swire's share of Cathay, which stood at 70 pct before the flotation, fell to 54.25 pct at the end of last year and has since slipped to 50.23 pct. Hongkong Aircraft reported this month its 1986 net profits rose 29.5 pct to 115.5 mln dlrs. Tony Measor, an analyst at Hong Leong Securities Ltd, estimates Swire's profits will be 1.525 billion dlrs. "Much depends on properties," said Measor. "And they did a lot better in the second half of the year." Estimates of profits from the firm's wholly owned Swire Properties Ltd unit range widely from 500 mln dlrs to 700 mln compared with 570 mln dlrs in 1985. Swire Properties recorded an interim profit of 120 mln dlrs for the first half of 1986, well below 260 mln dlrs for the same 1985 period, but analysts said that was due mainly to the low level of completion of new residential flats. The firm's properties consist mainly of the Taikoo Shing residential development and two luxury housing projects. Hoare Govett Asia Ltd said the completion of 1,100 flats in Taikoo Shing will have yielded profits of 300 mln dlrs in second-half 1986. During the year property prices continued to rise as more people bought real estate, benefiting from low interest rates, analysts said. "At the end of last year, flats in Taikoo Shing were selling at 1,100 dlrs per square foot, up by about 20 pct from a year ago," said Frederick Tsang of Mansion House Securities (F.E.) Ltd. Swire is developing a large commercial and hotel complex in the central business district of Hong Kong but it will not provide income until the first stage is completed next year. The company also sold three properties and a part interest in a proposed hotel development, which should result in extraordinary gains of 60 mln dlrs in 1986, according to James Capel (Far East) Ltd. Swire's trading and manufacturing operations are expected to earn 300 mln dlrs, up 22 pct from 1985 but its shipping and offshore services are likely to post a small loss of about 10 mln dlrs because of depressed market conditions.  
P AND O 1986 PRETAX PROFIT 174.1 MLN STG VS 125.6 MLN.  P AND O 1986 PRETAX PROFIT 174.1 MLN STG VS 125.6 MLN  
PENINSULAR AND ORIENTAL 1986 YEAR. Earnings per one stg of deferred stock 41.7p vs 34.9 Div 11.5p making 19.0 vs 16.0 Turnover 1.95 billion stg vs 1.63 billion Pretax profit 174.1 mln vs 125.6 mln Tax 49.4 mln vs 34.9 mln NOTE - Company's full name is Peninsular and Oriental Steam Navigation Co Plc <PORL.L> Net operating costs 1.77 billion stg vs 1.51 billion Share of profits of associates 21.1 mln vs 37.9 mln Operating profit 206.3 mln vs 154.2 mln Investment income 1.7 mln vs 3.6 mln Net interest payable 29.5 mln vs 29.2 mln Employee profit sharing 4.4 mln vs 3.0 mln Minority interests 2.5 mln debit vs 2.4 mln debit Extraordinary items 29.8 mln credit vs 0.1 mln credit Group operating profit includes - Service industries 40.7 mln vs 34.4 mln Passenger shipping 19.5 mln vs 13.1 mln Housebuilding, construction/development 50.1 mln vs 30.0 mln Container and bulk shipping 43.8 mln vs 34.4 mln P and O Australia 6.6 mln vs 9.4 mln Banking nil vs 7.7 mln Investment property income 45.6 mln vs 25.2 mln  
Woolworth Holdings pretax profit 115.3 mln stg vs 81.3 mln, year to end-January.  Woolworth Holdings pretax profit 115.3 mln stg vs 81.3 mln, year to end-January  
WOOLWORTH HOLDINGS PLC <WLUK.L> YR TO END-JANUARY. Shr 47.1p vs 37.7 Shr fully diluted 42.2p vs 33.6 Div 11p vs 7 making 16 vs 10 Turnover 1.83 billion stg vs 1.76 billion Pretax profit 115.3 mln vs 81.3 mln Tax 30.5 mln vs 16.2 mln Retail profit - B and Q 45.5 mln vs 33.1 mln Comet 17.4 mln vs 11.9 mln Woolworth 38.7 mln vs 17.6 mln Other 4.6 mln loss vs 600,000 loss Property income 49.4 mln vs 48.0 mln Net interest payable 31.1 mln vs 28.7 mln Extraordinary debit 16.0 mln vs 29.1 mln  
SANTOS LTD <STOS.S> YEAR END DEC 31 NET PROFIT 88.67 DLRS VS 144.04 MLN.  SANTOS LTD <STOS.S> YEAR END DEC 31 NET PROFIT 88.67 DLRS VS 144.04 MLN  
SANTOS LTD <STOS.S> YEAR ENDING DEC 31. Shr 37.0 cents vs 60.0 Final div deferred vs 11 cents (1985 full year 20.0) Pre-tax 171.05 mln vs 239.97 mln Net 88.67 mln vs 144.04 mln Turnover 400.42 mln vs 506.51 mln Other income 85.44 mln vs 71.04 mln Shrs 238.99 vs same. NOTE - Final div deferred for tax advantage until after July 1 but not expected to be less than nine cents (interim seven). Net after tax 82.38 mln vs 95.92 mln, depreciation and amortisation 93.29 mln vs 76.19 mln, interest 90.94 mln vs 116.49 mln, minorities nil vs loss 10,000 but before extraordinary loss 6.49 mln vs loss 53.40 mln.  
P AND O PLANS WARRANT ISSUE TO MARK ANNIVERSARY. Peninsular and Oriental Steam Navigation Co Plc <PORL.L>, P and O, said it plans a free warrant issue on the basis of 10 warrants for every 150 stg nominal of deferred stock already held, to mark the 150th anniversary of the company. Each warrant will give the right to subscribe for one stg nominal of deferred stock at 750p during a specified period in the five years starting in 1988. P and O deferred shares were last quoted at 629p, down 1p since yesterday, after the company reported 1986 pre-tax profit of 174.1 mln stg against 125.6 mln for 1985. P and O said 1986 produced an acceptable level of growth, though ground has to be made up in one or two areas. The company has a strong balance sheet and considerable flexibility for 1987, it added. P and O will concentrate on expanding in its established market sectors. Commenting on the recent ferry disaster in the North Sea off Zeebrugge, the statement said the precise cause is unknown. The company has instituted an immediate investigation and both the British and Belgian governments are conducting inquiries. The stricken ferry, the Herald of Free Enterprise, belongs to Townsend Thoresen, which became part of P and O in January. P and O is considering listing its shares in Japan and other important overseas financial centres, the statement added.  
British Aerospace 1986 pretax profit 182.2 mln stg vs 150.5 mln.  British Aerospace 1986 pretax profit 182.2 mln stg vs 150.5 mln  
BRITISH AEROSPACE PLC <BAEL.L> 1986 YEAR. Shr 51.4p vs 56.4p Div 11.0p making 17.4p, a 10 pct increase on 1985 Turnover 3.14 billion stg vs 2.65 billion Pretax profit 182.2 mln vs 150.5 mln Tax 53.8 mln vs 23.5 mln Note - comparisons restated. Trading profit 217.2 mln vs 211.1 mln Launching costs 47.6 mln vs 51.6 mln Share of profit of related companies 3.6 mln vs 3.4 mln Net interest receivable 9.0 mln vs 12.4 mln payable Extraordinary debit 44.1 mln vs nil Trading profit includes  - Civil aircraft 7.7 mln loss vs 2.5 mln loss Military aircraft and support services 146.0 mln vs 148.3 mln Guided weapon and electronic systems 139.7 mln vs 127.8 mln Space and communications 1.9 mln vs 2.0 mln loss Company funded research and development 62.7 mln loss vs 54.9 mln Reorganisation costs nil vs 5.6 mln loss Launch costs include - BAe 146 17.1 mln vs 27.3 mln Airbus 19.4 mln vs 6.9 mln BAe 125-800 0.3 mln vs 1.5 mln ATP 10.8 mln vs 15.9 mln  
Prudential Corp 1986 pretax profit 178.1 mln stg vs 110.1 mln.  Prudential Corp 1986 pretax profit 178.1 mln stg vs 110.1 mln  
PRUDENTIAL CORP PLC <PRUL.L> 1986 YEAR. Shr 34.5p vs 24.5p adjusted Div 19p making 29p vs 24.8p adjusted Pretax profit 178.1 mln vs 110.1 mln Tax and minorities 60.5 mln vs 32.7 mln Profit attributable 117.6 mln vs 77.4 mln Pretax profit includes - Long term business 145.5 mln vs 137.7 mln General insurance business - Underwriting loss 99.9 mln vs 131.6 mln Investment income 94.8 mln vs 78.2 mln Trading loss 5.1 mln vs 53.4 mln Investment management, U.K. 6.4 mln vs 1.6 mln Shareholders' other income 31.3 mln vs 24.2 mln Pretax profit by division includes - U.K. Individual division 97.1 mln vs 89.5 mln U.K. Group pensions 10.5 mln vs 10.6 mln International 13.4 mln vs 12.4 mln Mercantile and General 24.5 mln vs 25.2 mln Prudential Portfolio managers 6.4 mln vs 1.6 mln Prudential Property Services 2.1 mln loss vs nil  
STANDARD CHARTERED PLC <STCH.L> 1986 YEAR. Shr 97.0p vs 85.3p Div 22.5p vs 20.0p making 35.0p vs 30.5p Pretax profit 253.9 mln stg vs 267.9 mln Tax 96.3 mln vs 125.6 mln Operating income 1.15 billion vs 998.8 mln Operating expenses 759.3 mln vs 692.7 mln Trading profit before charge for bad and doubtful debts 394.4 mln stg vs 306.1 mln Charge for bad and doubtful debts 184.2 mln vs 100.7 mln Share of profits of associates 43.7 mln vs 62.5 mln Minority interests 6.6 mln debit vs 9.6 mln debit Extraordinary items 8.7 mln debit vs 15.7 mln credit Operating income includes - Interest income 2.49 billion vs 2.33 billion Interest expenses 1.77 billion vs 1.64 billion Other operating income 428.8 mln vs 313.2 mln Operating expenses include - Staff 405.9 mln vs 376.0 mln Premises and equipment 197.0 mln vs 155.2 mln Others 156.4 mln vs 161.5 mln Pretax profit includes -  North America 65.8 mln vs 49.6 mln Asia Pacific 0.9 mln vs 31.8 mln Middle East and south Asia 17.7 mln vs 2.3 mln Tropical Africa 47.5 mln vs 44.7 mln U.K. 107.6 mln vs 135.7 mln South Africa 36.8 mln vs 35.6 mln  
WOOLWORTH U.K. SAYS GROWTH PROSPECTS EXCITING. Woolworth Holdings Plc <WLUK.L> which earlier announced a 1986 pre-tax profits rise of 42 pct over 1985, said its prospects for growth were very exciting. The profit figure of 115.3 mln stg exceeded a forecast by some 10 pct made during the hostile bid by Dixons Group Plc <DXNS.L> last year and the company said the results were a major step towards the aim of making Woolworth the most profitable retailing group in the U.K. It aimed to produce growth from all its businesses and look for opportunities to acquire specialist retail businesses. Earlier this month the group said that tentative merger talks with the high street pharmacist <Underwoods Plc> had been called off and recently announced a 19.2 mln stg recommended offer for <Charlie Browns Car Part Centres Plc>. The B and Q Do it Yourself centres raised sales by 31 pct and retail profit by 37 pct, with its pretax contribution of 45.5 mln making it the largest single component. The company said that the improvement had been achieved by substantial organic growth in existing stores as well as by the opening of a further 29 new outlets and enhanced margins. In other sectors, the Comet electrical chain raised retail profits by 46 pct to 17.4 mln stg, while the Woolworth chain reported a 120 pct improvement to 38.7 mln. The company said its property operations would increase substantially following the start of a joint venture deal with developers <Rosehaugh Plc>. The defence costs against the 1.9 billion stg bid from Dixons resulted in a 16.0 mln stg extraordinary charge. The results were 10 mln stg up on most analysts forecasts. As a result, the group's shares rose strongly, peaking at 865p from last night's 842p before easing to 860p at 1155 GMT.  
NATIONAL SEMICONDUCTOR CORP <NSM> 3RD QTR LOSS. March Eight Shr loss 31 cts vs loss 47 cts Net loss 25.6 mln vs loss 39.4 mln Sales 398.1 mln vs 322.3 mln Avg shrs 91.6 mln vs 90.0 mln Nine mths Shr loss 44 cts vs loss one dlr Net loss 32.7 mln vs loss 84.4 mln Sales 1.36 billion vs 1.08 billion Avg shrs 91.2 mln vs 89.6 mln NOTE: Twelve and 40-week periods. Prior year results restated for change in method of recognizing revenue on distributor shipments.  Quarter net loss originally reported as 32.0 mln dlrs or 38 cts shr on sales of 328.9 mln dlrs and nine mth loss as 120.3 mln dlrs or 1.40 dlrs shr on sales of 1.11 billion dlrs. Prior nine mths net includes 51.2 mln dlr gain from cumulative effect of accounting change. Prior year net includes extraordinary credits of 1,100,000 dlrs in quarter and 3,300,000 dlrs in nine mths. Current year net both periods includes 15.0 mln dlr pretax charge from previously-announced restructuring of Datachecker Systems and Semiconductor Group manufacturing operations.  
TRANSNATIONAL INDUSTRIES <TRSL> SEES LOSS. Transnational Industries Inc said due to continuing manufacturing difficulties at its AlloyTek Inc jet engine component subsidiary, it expects to report a net loss of about 300,000 dlrs or 12 cts per share for the fourth quarter ended January 31. It said revenues for the period were about 11.9 mln dlrs, about even with those of a year earlier. For the full fiscal year, the company said it earned about 775,000 dlrs or 34 cts per share, down from 1,402,000 dlrs or 76 cts per share a year before. The company said an unexpectedly large volume of customer inquiries at its Spitz Inc simulation products subsidiary has caused higher than expected business development outlays. The company said it expects significant contract awards to Spitz later this year. It said it has started implementing a plan to progressively reduce manufacturing costs at AlloyTek over the next several quarters.  The company said it may move AlloyTek's plant from Grandville, Mich., to a lower labor cost area. The company said it discovered the extent of the AlloyTek problems during a year-end review of subcontracts and related work in progress for production of jet engine components for General Electric Co <GE>. It said it will release annual results around April 15.  
STERIVET <STVTF> SETS THREE-FOR-ONE SHARE SPLIT. Sterivet Laboratories Ltd said the board authorized a three-for-one split of its outstanding common shares, subject shareholder approval at the annual meeting.  
CAMPBELL RED LAKE <CRK> SETS QUARTERLY DIVIDEND. Qtly div 10 cts vs 10 cts prior Pay May 25 Record April 20 Note: Canadian funds  
ADVANCED COMPUTER TECHNIQUES <ACTP> YEAR NET. Shr 41 cts vs 30 cts Net 700,000 vs 526,000 Revs 15.2 mln vs 14.7 mln  
NEWS CORP <NWS> UNIT CORRECTS DIVIDEND RATE. News Corp Ltd's Fox Television Stations Inc subsidiary said it will pay an accrued dividend of 5.44 dlrs per share, not the 5.83 dlrs it reported earlier, in connection with the April 15 redemption of 230,000 shares of increasing rate exchangeable guaranteed preferred stock for 1,000 dlrs per share plus accrued dividends.  
MCRAE INDUSTRIES <MRI-A> INCREASES PAYOUT. McCrae Industries Inc said it raised its preferred dividend on its Class A common stock to 12 cts per share from 11 cts per share. It said the dividend was payable April 20, 1987, to shareholders of record April 6.  
CHARMING SHOPPES INC <CHRS> RAISES QUARTERLY. Qtly div three cts vs 2-1/2 cts prior Pay April 15 Record April Six  
ANGELICA CORP <AGL> 4TH QTR JAN 31 NET. Shr 47 cts vs 40 cts Net 4,399,000 vs 3,768,000 Sales 76.6 mln vs 68.0 mln Year Shr 1.79 dlrs vs 1.84 dlrs Net 16,701,000 vs 17,159,000 Sales 291.7 mln vs 269.1 mln NOTE: FiscaL 1987 year based on 53 weeks compared wqith 52 weeks a year earlier.  
GULL INC <GLL> 3RD QTR FEB 28 NT. Shr 22 cts vs 14 cts Net 917,000 vs 553,000 Sales 16.1 mln vs 13.6 mln Avg shrs 4,195,000 vs 4,090,000 Nine mths Shr 70 cts vs 29 cts Net 2,852,000 vs 1,086,000 Sales 49.2 mln vs 40.7 mln NOTE: Prior nine mths net includes gain 250,000 dlrs from insurance payment.  
AMERIANA SAVINGS BANK <ASBI> 4TH QTR NET. Shr not given Net 328,000 vs 99,000 Year Shr not given Net 1,694,000 vs 998,000 NOTE: Company went public in February 1987. Net includes pretax loan loss recovery 41,000 dlrs vs provision 50,000 dlrs in quarter and provisions 135,000 dlrs vs 50,000 dlrs in year.  
GRIFFIN TECHNOLOGY INC <GRIF> 4TH QTR NET. Ended Jan 31 Shr loss one ct vs loss eight cts Net loss 25,800 vs loss 157,100 Revs 2,323,500 vs 1,930,400 Year Shr profit 19 cts vs profit four cts Net profit 401,100 vs profit 93,100 Revs 10.3 mln vs 8,807,000  
PETRIE STORES CORP <PST> 4TH QTR JAN 31 NET. Shr 90 cts vs 97 cts Shr diluted 82 cts vs 88 cts Net 42.1 mln vs 43.0 Revs 379.3 mln vs 352.7 mln Avg shrs 46.8 mln vs 44.3 mln Avg shrs diluted 52.6 mln vs 50.0 mln Year Shr 1.58 dlrs vs 1.81 dlrs Shr diluted 1.50 dlrs vs 1.76 dlrs Net 73.7 mln vs 77.9 mln Revs 1.20 billion vs 1.16 billion Avg shrs 46.8 mln vs 43.0 mln Avg shrs diluted 52.6 mln vs 45.6 mln  
VALLEN CORP <VALN> 3RD QTR FEB 28 NET. Shr 24 cts vs 33 cts Net 347,000 vs 469,000 Sales 16.5 mln vs 14.0 mln Nine mths Oper shr 93 cts vs 94 cts Oper net 1,327,000 vs 1,342,000 Sales 48.8 mln vs 34.5 mln NOTE: Current nine mths net excludes 756,000 dlr gain from termination of pension plan.  
VOLVO GROUP COMPANY PROPOSES TWO-FOR-FIVE ISSUE. <AB Catena>, in which AB Volvo <VOLV.ST> has a 48 pct stake, said it was proposing a two-for-five stock issue that will raise the company's equity capital to 420 mln crowns from 300 mln. Catena reported profits after financial income and costs up to only 231 mln crowns from 207 mln in 1985, despite an increase in sales to 8.54 billion crowns from 5.59 billion in 1985. The company said that its 1986 performance was best reflected by earnings after writeoffs, which rose to 310 mln from 221 mln in 1985. Catena's increase in sales was mainly due to the takeover of Safveans AB in February 1986, which changed the business profile of Catena. It had principally operated as a Volvo dealer. With the Safveans acquisition it is now mainly a trading and industrial company. In December 1986 Catena sold its share in the stockbroking firm Jacobson och Ponsbach Fondkommission AB. This yielded a profit of 386.7 mln crowns and was reflected in Catena's pre-tax earnings which rose to 724 mln crowns from 204 mln in 1985.  
COMMERCIAL METALS CO <CMC> 2ND QTR FEB 28 NET. Shr 23 cts vs 34 cts Net 2,091,000 vs 3,053,000 Revs 203.5 mln vs 215.7 mln Avg shrs 8,967,719 vs 8,863,945 1st half Shr 40 cts vs 69 cts Net 3,616,000 vs 6,111,000 Revs 411.8 mln vs 418.1 mln Avg shrs 8,958,100 vs 8,850,656  
GEO. A. HORMEL <HRL> VOTES TWO-FOR-ONE SPLIT. Geo. A. Hormel and Co said its directors voted a two-for-one split, payable June one, record April 18.  
<SHELL U.K. LTD> YEAR 1986. Sales proceeds 6.57 billion stg vs 8.81 billion Duty and value added tax 1.84 billion vs 1.60 billion Net proceeds 4.73 billion vs 7.21 billion Net profit 757 mln vs 667 mln Average capital employed 3.63 billion vs 3.71 billion Capital and exploration expenditure 644 mln vs 618 mln Cash surplus 423 mln vs 584 mln. NOTE - Company is wholly owned subsidiary of Royal Dutch/Shell Group <RD.AS>  
AMERICAN CYANAMID <ACY> CHANGES RECORD DATE. American Cyanamid Co said subject to approval by its board it has changed the record date for the quarterly dividend it will pay on June 26 to May 8 from May 29 to coincide with the record date for a two-for-one stock split that was declared at the same time. The dividend on a post-split basis is 26-1/4 cts per share.  
PNEUMATIC SCALE CO <PNU> SETS QUARTERLY. Qtly div 25 cts vs 25 cts prior Pay May 4 Record April 20  
CURTICE-BURNS FOODS INC <CBI> RAISES PAYOUT. Qtly div 26 cts vs 24 cts prior Pay April 30 Record April 15  
HYDRAULIC <THC> SPLITS 3-FOR-2, HIKES DIVIDEND. The Hydraulic Co said its board approved a three-for-two stock split of its common stock and increased its quarterly cash dividend. It said the stock split will occur through a 50 pct stock distribution on Hydraulic's common stock, payable April 30 to stockholders of record on April 3. The quarterly cash dividend, payable April 15 to stockholders of record on April 3, is to be paid on Hydraulic's pre-split shares that are currently outstanding, the company said. The dividend will be 54.75 cts per share, up from 52 cts per share.It will represent a quarterly common stock cash dividend of 36.50 cts per share on the share that will be outstanding after the stock split, the company said.  
HUGHES SUPPLY INC <HUG> 4TH QTR NET. Shr 52 cts vs 49 cts Shr diluted 1.95 dlrs vs 1.99 dlrs Net 1,751,609 vs 1,622,503 Sales 85.9 mln vs 85.1 mln Year Shr 2.10 dlrs vs 1.99 dlrs Shr diluted 1.95 dlrs vs 1.99 dlrs Net 6,822,493 vs 6,601,717 Sales 347.8 mln vs 324.6 mln  
PREWAY INC <PREW> 4TH QTR LOSS. Shr loss 64 cts vs loss 1.29 dlrs Net loss 5,732,000 vs loss 4,924,000 Sales 18.8 mln vs 23.6 mln Avg shrs 9.0 mln vs 3.8 mln Year Shr loss 1.82 dlrs vs loss 3.65 dlrs Net loss 12,267,000 vs loss 13,911,000 Sales 112.8 mln vs 129.3 mln Avg shrs 6.7 mln vs 3.8 mln  
SOUTHERN NATIONAL CORP <SNAT> SETS STOCK SPLIT. Southern National corp said its board declared a three-for-two stock split, payable to shareholders of record on May 22. A company spokeswoman said the payable date for the split has not yet been fixed but would be shortly after the record date.  
NATIONAL SEMICONDUCTOR<NSM> CITES IMPROVED RESULTS. National Semiconductor Corp said improved results at its Semiconductor Group helped reduce losses in the third quarter and nine months. In the quarter ended March 8, the group had a modest sales increase and major improvement in operating performance compared to the year-ago quarter, the company said. But results softened from the prior quarter because of low bookings last fall for third quarter shipment and holiday shutdowns, it said. The semiconductor maker cut net losses to 25.6 mln dlrs or 31 cts a share from 39.4 mln dlrs or 47 cts in the quarter. Losses in the nine months were reduced to 32.7 mln dlrs or 44 cts from 84.4 mln dlrs or one dlr. Sales grew 23.5 pct in the quarter to 398.1 mln dlrs and 25.5 pct in the nine months to 1.36 billion dlrs. Bookings recovered in the latter part of the third quarter, the company said. Despite the improvement in order rates and operating results year-to-year, pricing continues to be "aggressive for many products," it said. Nevertheless, it expects the semiconductor business will continue to improve this year. The Information Systems Group will continue strong sales growth based on recent order trends and new product introductions, it said.  
BERLINER BANK OUTLINES LOSSES. <Berliner Bank AG> has suffered losses of between 25 mln and 30 mln marks on credits extended by its Stuttgart branch by bank officials who exceeded their powers, a bank spokesman said. The spokesman, replying to queries about press reports, said he could not rule out the possibility that the final loss figure may be slightly above this range. Late last week the bank said only that the losses from the credits in Stuttgart would be in the "double-digit millions."  
HUGHES SUPPLY INC <HUG> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay May 22 Record May 8  
KLEINERT'S INC <KLRT> 1ST QTR ENDS FEB 28 NET. Shr 24 cts vs 18 cts Net 359,000 vs 297,000 Revs 5,724,000 vs 6,430,000 Avg shrs 1,475,0000 vs 1,668,000 NOTE: qtrs include tax gain of 147,000 vs 137,000. Prior qtr ended March 1, 1986.  
MICRODYME CORP <MCDY> 1ST QTR FEB ONE LOSS. Shr loss nine cts vs profit two cts Net loss 397,000 vs profit 76,000 Revs 3,763,000 vs 6,467,000  
INTERNATIONAL CLINICAL LABORATORIES INC <ICLB>. Shr nine cts vs seven cts Net 676,000 vs 509,000 Revs 48.5 mln vs 39.9 mln 1st half Shr 12 cts vs 17 cts Net 923,000 vs 1,248,000 Revs 94.1 mln vs 79.5 mln NOTE:Current half net includes charge 500,000 dlrs from reversal of investment tax credits.  
K MART CORP RAISES DIVIDEND 17.6 PCT, VOTES THREE-FOR-TWO STOCK SPLIT.  K MART CORP RAISES DIVIDEND 17.6 PCT, VOTES THREE-FOR-TWO STOCK SPLIT  
K MART <KM> RAISES PAYOUT, VOTES SPLIT. K mart Corp said its board approved a 17.6 pct increase in the quarterly dividend and declared a three-for-two stock split. The company raised its dividend to 43.5 cts a presplit share, up from the previous 37 cts a share. After the split, the new quarterly dividend rate is equivalent to 29 cts a share. It is payable June Eight, record May 21. It said the additional shares will be distributed June Five, record May 21.  
DATA ARCHITECTS INC <DRCH> 1ST QTR FEB 28 NET. Shr 19 cts vs 14 cts Net 487,000 vs 344,000 Revs 7,492,000 vs 5,883,000  
PASSPORT TRAVEL INC <PPTI> 1ST QTR FEB 28 NET. Shr two cts vs nil Net 20,406 vs 2,348 Sales 6,191,000 vs 6,249,000  
HI-SHEAR INDUSTRIES INC <HSI> 3RD QTR FEB 28 NET. Oper shr 28 cts vs 33 cts Oper net 1,647,000 vs 1,910,000 Revs 19.7 mln vs 17.5 mln Nine mths Oper shr 82 cts vs 84 cts Oper net 4,787,000 vs 8,748,000 Revs 55.9 mln vs 53.0 mln NOTE: Prior year net excludes tax credits of 29,000 dlrs in quarter and 1,761,000 dlrs in nine mths. Prior nine mths net includes gain from sale of real estate of 3,820,000 dlrs.  
PRUDENTIAL RECORDS BEST RESULTS IN SIX YEARS. <Prudential Corporation Plc>, which earlier announced a 62 pct rise in 1986 pre-tax profits, said it had recorded its best general insurance result for six years but had not reached satisfactory levels of profit in other areas. Group Chief Executive Brian Corby told a news conference that despite returning to trading profits, the International division and the Mercantile and General division had not reached satisfactory levels. But he said he welcomed Mercantile and General trading profits in 1986 and was optimistic about both that and the International division. The acquisition of the U.S. Life company <Jackson National> had a small effect in 1986 but its full effect would be felt in the 1987 results, Corby said. The Group also intended to expand the number of its estate agency firms bought last year, and hoped they will comprise between 10 and 15 pct of total company profits in the future. "We hope they will be very profitable very shortly. We are looking for profits from the estate agencies themselves as well as the insurance products associated with them," Corby said. Prudential's pre-tax profits rose from 1985's 110.1 mln stg to 178.1 mln stg in 1986.  
CRS SIRRINE <DA> TO TAKE WRITE-OFF. CRS Sirrine Inc said it plans a major restructuring of its balance sheet that will include a write-off of between 39 mln and 43 mln dlrs, most of which would be intangible goodwill from the company's past acquisitions. The company said the remainder of its write-off would include a one-time expense for future costs related to early retirement programs, office consolidations and an increase in the general reserve for adjustments and contingencies. Bruce Wilkinson, president of the company, said the charges to the company's third quarter earnings, for the period ending March 31, would "significantly impact" third quarter results but would not affect the company's cash position. "We expect to have the biggest operating backlog in the company's history by June 30, 1987, the end of our fiscal year," Wilkinson said. "We believe the action being proposed will begin to contribute to improved earnings in the fourth quarter of our fiscal 1987 and throughout fiscal 1988." The company, which is one of the nation's largest construction firms, also said termination of its defined benefit retirement plan would produce a pre-tax benefit of about 10 mln dlrs due to overfunding of the plan. In its second quarter ended Dec. 31, CRSS had net earnings of 800,000 dlrs on revenues of 82.5 mln dlrs.  
FLOWERS INDUSTRIES INC <FLO> 3RD QTR MARCH 7. March 7 end Shr 17 cts vs 23 cts Net 3,998,000 vs 5,317,000 Sales 189.4 mln vs 159.6 mln Nine mths Shr 64 cts vs 68 cts Net 14.9 ln vs 15.9 mln Sales 540.9 mln vs 464.7 mln NOTE: Twelve and 36-week periods.  
FLOWERS INDUSTRIES <FLO> SEES LOWER YEAR NET. Flowers Industries Inc said it expects lower earnings for the current year due to operating losses incurred by recent acquisitions and possible nonrecurring losses resulting from its restructuring efforts. For the year ended June 28, Flowers earned 29.5 mln dlrs. Today it reported nine month earnings of 14.9 mln dlrs, down from 15.9 mln dlrs a year before. Flowers said it expects fiscal 1988, however, to show the best growth in profits in its history due to the growing profitability of ongoing businesses, cost control efforts, higher productvitiy and lower taxes. Flowers said losses suffered in its West Texas operations and in five plants acquired at the start of the third quarter from <CFS Staley Continental> and <Wolf Baking Co> severely hurt results. It said the CFS and Wolf plants are expected to be contributing to profit by the end of the fiscal year and it is seeking to bring the West Texas operations to acceptable levels of profitability by the end of the fourth quarter as well.  
TECHNITROL INC <TNL> 4TH QTR. Shr 54 cts vs 47 cts Net 1.1 mln vs 941,000 REvs 8.9 mln vs 10.3 mln Year Shr 1.65 dlrs vs 1.64 dlrs Net 3.3 mln vs 3.3 mln Revs 37.4 mln vs 39.0 mln  
GENERAL NUTRITION INC <GNC> 4TH QTR NET. Qtr ends Jan 31 Shr profit eight cts vs loss 38 cts Net profit 2,466,000, vs loss 12,691,000 Revs 111.1 mln vs 106.8 mln 12 mths Shr profit 20 cts vs loss 47 cts Net profit 6,591,000 vs loss 15.5 mln Revs 342.6 mln vs 370.4 mln NOTE: includes provision for store closings of foreign operations of 3,897,000 for 1986 qtr, and 1,403,000 for qtr prior. includes provision for store closing costs and unproductive inventory of 1,000,000 for 1986 qtr, and 25.1 mln for qtr prior.  
PLENUM PUBLISHING CORP <PLEN> 4TH QTR NET. Shr 63 cts vs 45 cts Net 3,623,067 vs 2,607,977 Gross income 10.1 mln vs 10.1 mln Year Shr 2.12 dlrs vs 1.74 dlrs Net 12.2 mln vs 10.0 mln Gross income 38.1 mln vs 36.8 mln NOTE: Share adjusted for five-for-two stock split effective yesterday. Net includes gains on sale of securities pretax of 1,860,213 dlrs vs 392,975 dlrs in quarter 5,023,401 dlrs vs 3,223,008 dlrs in year.  
HONEYBEE INC <HBE> 4TH QTR NET. Oper shr 11 cts vs five cts Oper net 248,000 vs 122,000 Sales 7,269,000 vs 5,481,000 Year Oper shr 55 cts vs 14 cts Oper net 1,288,000 vs 333,000 Sales 26.2 mln vs 17.6 mln NOTE: Net excludes discontinued operations nil vs gain 103,000 dlrs in quarter and losses 82,000 dlrs vs 50,000 dlrs in year. 1986 year net excludes 133,000 dlr provision for loss on disposal of discontinued operations.  
SCIENTIFIC MEASUREMENT SYSTEMS INC <SCMS> NET. 2nd qtr Jan 31 Shr loss three cts vs loss seven cts Net loss 352,000 vs loss 568,000 Revs 636,000 vs 640,000 Avg shrs 12.7 mln vs 8,377,000 1st half Shr loss six cts vs loss 10 cts Net loss 594,000 vs loss 865,000 Revs 1,245,000 vs 1,063,000 Avg shrs 10.5 mln vs 8,333,000  
PUBLIC SERVICE CO OF COLORADO <PSR> IN PAYOUT. Qtly div 50 cts vs 50 cts prior Pay May One Record April 10  
CORRECTED - MANHATTAN NATIONAL CORP <MLC> 4TH. Oper shr loss 20 cts vs loss 81 cts Oper net loss 1,042,000 vs loss 4,077,000 Revs 38.5 mln vs 50.3 mln 12 mths Oper shr loss six cts vs loss 43 cts Oper net loss 336,000 vs loss 2,176,000 Revs 137.8 mln vs 209.1 mln NOTE: In item moved March 23, company corrects its error to show loss for current 12 mths and qtr, not profit.  
STE FRANCAISE DES PETROLES BP <PBPF.PA> 1986 YEAR. Net result breakeven (no profit or loss) vs breakeven Operating loss 836 mln francs vs 654 mln Net turnover 12.70 billion francs vs 24.34 billion Sales of petroleum products 9.7 mln tonnes vs 10.6 mln Note - Company said in a statement 1986 results were affected by the sharp fall in crude oil prices. Net result included an extraordinary recovery of 731 mln francs from provisions for currency fluctuations and 361 mln francs in depreciation of fixed assets. Company is a subsidiary of The British Petroleum Co Plc <BP.L>.  
ENSERCH CORP <ENS> SETS QUARTERLY. Qtly div 20 cts vs 20 cts prior Pay June One Record May 15  
METROPOLITAN FINANCIAL CORP <MFC> VOTES PAYOUT. Qtly div 11 cts vs 11 cts prior qtr Pay 30 April Record 15 April  
MICROSIZE INC <MSIZ> 2ND QTR ENDS FEB 28 NET. Shr profit one cent vs loss 2.6 cts Net profit 59,198 vs loss 132,702 Revs 634,616 vs 485,730 six mths Shr profit one cent vs loss four cts Net profit 49,669 vs loss 208,278 Revs 1,056,452 vs 944,330  
TAJON RANCH CO <TRC> 4TH QTR NET. Shr five cts vs nine cts Net 560,000 vs 1,247,000 Revs 7,597,000 vs 4,619,000 Year Shr ten cts vs 17 cts Net 1,225,000 vs 2,161,000 Revs 26.5 mln vs 23.3 mln  
CENTERIOR ENERGY CORP <CX> SETS QUARTERLY. Qtly div 64 cts vs 64 cts prior Pay May 15 Record April 16  
SUFFIELD FINANCIAL CORP <SFCP> RAISES QUARTERLY. Qtly div five cts vs three cts prior Pay April 10 Record March 31  
SIGMA RESEARCH ONC <SIGR> 2ND QTR DEC 31 LOSS. Shr loss 27 cts vs profit one ct Net loss 532,376 vs profit 15,584 Revs 1,899,719 vs 2,432,256 Six mths Shr loss 78 cts vs profit two cts Net loss 1,521,002 vs profit 30,145 Revs 3,235,907 vs 5,276,119 Note: year ago net includes gain from tax carryforwards of 5,000 dlrs in quarter and 9,000 dlrs in year.  
KODAK <EK> TO CUT POLYESTER FIBER OPERATIONS. Eastman Kodak Co said it will reduce capacity and employment levels in two polyester fiber operations of its Eastman Chemicals division. A company spokesman said the company will take "some writeoff" in connection with the action in the first quarter and there will probably be a further "carryover" writeoff in the second quarter.  The writeoffs will cover the costs of plants and equipment involved, as well as expenses connected with the staff cuts. Kodak said the division will discontinue production of polyester partially-oriented filament yarn, or POY, at its Carolina Eastman Co plant in Columbia, S.C., and will idle 100 mln pounds of older polyester staple fiber production capacity, mostly in Columbia. The company said about 350 jobs will be affected in Columbia, most of which are now performed by contract workers, and about 225 jobs at its Tennessee Eastman Co plant in Kingsport, Tenn. Kodak said part of the staff reduction will be achieved through an enhanced voluntary separation and retirement plan for employees of Carolina Eastman, Eastman Chemical Products Inc and other Kodak units in Kingsport, except Holsten Defense Corp. Most of the workforce reduction is expected to be completed by April 30. Kodak said depressed prices and poor financial performance have led to the decision. It said about 50 mln pounds of POY production will be shut down as a result of its exit from the business. All Kodak POY production has been at Carolina Eastman since last year. The company said annual capacity for production of Kodel polyester staple fiber will be reduced to 400 mln pounds from 500 mln due to lesser demand. It said it will proceed with a previous decision to phase in a new 100 mln pound staple fiber plant at Carolina Eastman. Carolina Eastman employs about 1,350 and the Kingsport units affected about 10,800. The company spokesman later said the charges will be insignificant and will have no impact on earnings estimates.  
CROWLEY, MILNER AND CO<COM> 4TH QTR JAN 31 NET. Shr 4.11 dlrs vs 3.51 dlrs Net 2,091,000 vs 1,785,000 Sales 38.8 mln vs 34.3 mln Year Shr 3.42 dlrs vs 3.57 dlrs Net 1,740,000 vs 1,815,000 Sales 113.0 mln vs 104.1 mln Qtly div 25 cts vs 25 cts previously Pay April 30 Record April 15  
PENN TRAFFIC CO <PNF> 4TH QTR JAN 31 NET. Shr 33 cts vs 46 cts Net 1,350,000 vs 1,886,000 Revs 150.1 mln vs 127.9 mln Year Shr 1.76 dlr vs 1.59 dlr Net 7,300,000 vs 6,567,000 Revs 548 mln vs 510.5 mln NOTE: First three quarters of 1986 have been restated to reflect adoption in 4th qtr of new pension accounting procedure which increased net income in first three qtrs 204,000 dlrs or five cts per share. Procedure increased fourth qtr income 73,000 dlrs or two cts per share.  
AMERICAN NETWORK INC <ANWI> DEC 31 YEAR NET. Shr profit 16 cts vs loss 1.40 dlrs Net profit 3,000,000 vs loss 6,570,000 Revs 91.7 mln vs 66.9 mln Avg shrs 19,078,072 vs 4,708,896 Note: Current year net includes nine mln dlr net gain from settlement of litigation.  
SIGNET BANKING CORP REGULAR DIVIDEND. Qtly div 31 cts vs 31 cts prior Payable APril 22 Record April three  
MOTT'S SUPER MARKETS INC <MSM> 4TH QTR JAN 3. Shr loss 15 cts vs loss 1.12 dlrs Net loss 414,331 vs loss 3.1 mln Revs 73.8 mln vs 69.1 mln Year Shr loss 99 cts vs loss 1.69 dlr Net loss 2.7 mln vs loss 4.7 mln Revs 276.9 mln vs 290.1 mnln  
ALEXANDER'S <ALX> 2ND QTR FEB 7. Shr 57 cts vs 72 cts Net 2.7 mln vs 3.3 mln Six months Shr 45 cts vs 84 cts Net 2.1 mln vs 3.8 mln NOTE:1987 six months includes 790,000 dlr charge. 1986 six months includes 679,000 net gain.  
NORTHEAST UTILITIES <NU> YEAR. Shr 2.78 dlrs vs 2.55 dlr NEt 302.0 mln vs 271.6 mln REvs 2.0 billion vs 2.1 billion  
LEUCADIA NATIONAL CORP <LUK> 4TH QTR NET. Shr 3.28 dlrs vs 22 cts Shr diluted 2.99 dlrs vs 22 cts Net 46.0 mln vs 3,328,000 Avg shrs 14.0 mln vs 15.2 mln Year Shr 5.41 dlrs vs 1.56 dlrs Shr diluted 4.94 dlrs vs 1.50 dlrs Net 78.2 mln vs 25.9 mln Avg shrs 14.5 mln vs 15.1 mln NOTE: earnings per share reflect the two-for-one split effective January 6, 1987. per share amounts are calculated after preferred stock dividends. Loss continuing operations for the qtr 1986, includes gains of sale of investments in Enron Corp of 14 mln dlrs, and associated companies of 4,189,000, less writedowns of investments in National Intergroup Inc of 11.8 mln and BRAE Corp of 15.6 mln.  
INTEGRATED RESOURCES INC <IRE> 4TH QTR NET. Oper primary shr 1.03 dlr vs 2.55 dlrs Oper diluted shr 94 cts vs 1.76 dlrs Oper net 15.2 mln vs 23.4 mln Revs 272.0 mln vs 232 mln Avg shrs primary 7,625,000 vs 5,534,000 Avg shrs diluted 12.3 mln vs 10.3 mln Year Oper shr 1.06 dlr vs 3.17 dlrs Oper net 39 mln vs 56.1 mln Revs 830.2 mln vs 657.9 mln Avg shrs 7,490,000 vs 5,557,000 NOTE: 1986 oper net excludes 10.4 mln dlrs for discontinued operations. 1985 4th qtr excludes a loss of 4,570,000 dlrs and 6,330,000 dlrs, respectively, for discontinued operations. 1986 oper net excludes a 10.5 mln dlr or 1.40 dlr per shr loss from early extinquishment of notes. 1986 and 1985 oper per share amounts are reported after paying 31.0 mln dlrs and 38.5 mln dlrs, respectively, for preferred stock dividends. 1986 and 1985 4th qtr per share amounts are reported after paying 7,292,000 dlrs and 9,333,000 dlrs, respectively, for preferred stock dividends. 1985's discontinued operations are restated.  
WEAN UNITED INC <WID> 4TH QTR. Shr loss one dlr vs profit seven cts Net loss 3.0 mln vs profit 349,000 Revs 35.6 mln vs 49.3 mln Year Shr loss 2.87 dlrs vs loss 2.71 dlrs Net loss 8.4 mln vs loss 7.9 mln Revs 140.3 mln vs 169.2 mln NOTE:earnings reflect preferred dividend requirements, 1986 year includes one-time gain of 1.2 mln dlrs  
CHARTER CO 4TH QTR NET PROFIT 118.8 MLN DLRS VS LOSS 13 MLN DLRS.  CHARTER CO 4TH QTR NET PROFIT 118.8 MLN DLRS VS LOSS 13 MLN DLRS  
ALEXANDER'S <ALX> 2ND QTR ENDS FEB 27 NET. Shr 57 cts vs 72 cts Shr diluted 57 cts vs 66 cts Net 2,699,000 vs 3,250,000 Revs 190.8 mln vs 195.9 mln Six mths Shr 45 cts vs 84 cts Shr diluted 45 cts vs 79 cts Net 2,092,000 vs 3,784,000 Revs 304.2 mln vs 304.6 mln NOTE: includes a change in accounting for investment tax credit of 1,408,000, or 31 cts per share, in six mths prior. first qtr 1987 includes non-recurring charge of 1,488,000 for company's abandoning of its plan to convert to a limited partnership.  
NEW PROCESS CO <NOZ> SETS QTLY PAYOUT. New Process Co said it declared a quarterly dividend of 12-1/2 cts, the regular dividend it pays during the first three quarters of the year. The dividend is payable May 1 to shareholders of record April 10. Last year, New Process paid an annual dividend of 1.18 dlrs by paying 12-1/2 cts a share in each of the first three quarters and a fourth quarter dividend of 80-1/2 cts.  
PETROLEUM EQUIPMENT TOOLS CO <PTCO> 4TH QTR. Shr loss 57 cts vs loss 30 cts Net loss 5.9 mln vs loss 3.2 mln Revs 5.6 mln vs 16.3 mln Year Shr loss 2.11 dlrs vs loss 95 cts Net loss 22.0 mln vs loss 9.9 mln Revs 29.3 mln vs 66.3 mln  
QUICK AND REILLY GROUP <BQR> 4TH QTR FEB 28. Shr 72 cts vs 57 cts Net 4.5 mln vs 3.6 mln Revs 25.1 mln vs 21.9 mln Year Shr 2.47 dlrs vs 1.87 dlr Net 15.6 mln vs 11.8 mln Revs 89.1 mln vs 73.3 mln  
CHARTER CO <QCHR> 4TH QTR OPER LOSS. Oper shr loss one ct vs loss four cts Oper net loss 336,000 vs profit 2,631,000 Revs 237.2 mln vs 382.3 mln Avg shrs 47.4 mln vs 16.5 mln Year Oper shr profit 21 cts vs profit 12 cts Oper profit 9,922,000 vs profit 15.1 mln Revs 1.1 billion vs 1.6 billion Avg shrs 47.4 mln vs 16.5 mln NOTE: 1986 4th qtr and year oper net excludes a gain of 28.6 mln dlrs and 28.5 mln dlrs or 60 cts per share, respectively, for discontinued operations. 1986 4th qtr and year oper net excludes a gain of 90.5 mln dlrs or 1.91 dlr per share and 114.8 mln dlrs or 2.42 dlrs per share, respectively, mainly for settlement of dioxin-related claims in reorganization proceedings. 1985 4th qtr and year oper net excludes a loss of 41.2 mln dlrs or 2.51 dlrs per share and a loss of 36.3 mln dlrs or 2.21 dlrs per share, respectively, for discontinued operations. 1985 4th qtr and year oper net excludes a gain of 25.6 mln dlrs or 1.56 dlr per share and 29.4 mln dlrs or 1.79 dlrs per share for settlement of claims and utilization of tax loss carryforward. 1985 year oper net also excludes a loss of seven mln dlrs for change in inventory evaluation method.  
NUMEREX CORP <NMRX> 2ND QTR JAN 31 LOSS. Shr loss seven cts vs profit five cts Net loss 149,421 vs profit 103,120 Sales 1,698,345 vs 1,920,010 Six Mths Shr loss five cts vs profit nine cts Net loss 100,472 vs profit 191,614 Sales 3,836,794 vs 3,650,322  
<ACKLANDS LTD> 1ST QTR FEB 28 NET. Shr three cts vs 11 cts Net 126,000 vs 434,000 Revs 84.0 mln vs 80.2 mln Avg shrs 4,948,731 vs 3,870,511  
BULL AND BEAR GROUP A <BNBGA> CUTS FUND PAYOUTS. Bull and Bear Group A said it lowered its monthly dividends on three of its funds. It said it lowered its Tax Free Income Fund <BLTFX> to 10.3 cts from 10.6 cts; its U.S. Government Guaranteed Securities Fund <BBUSX> to 11.5 cts from 11.8 cts; and its High Yield Fund <BULHX> to 14 cts from 14.2 cts. All dividends are payable March 31 to shareholders of record March 25, the company said.  
ALTRON INC <ALRN> 4TH QTR JAN 3. Shr loss 56 cts vs loss five cts Net loss 1.9 mln vs loss 164,000 revs 6.9 mln vs 5.4 mln Year Shr loss 1.15 dlrs vs profit 52 cts Net loss 3.8 mln vs profit 1.7 mln Revs 25.6 mln vs 29.8 mln NOTE: 1987 net loss includes loss 6.5 mln dlrs for nonrecurring reserve for closing costs of facility, writeoffs and sales of real estate.  
VERMONT FINANCIAL SERVICES <VFSC> SETS PAYOUT. Vermont Financial Services Corp said its board approved a regular 20 cts per share cash dividend payable April 25 to shareholders of record March 26.  
GREAT ATLANTIC AND PACIFIC TEA CO INC <GAP> DIV. Qtly div 10 cts vs 10 cts prior Payable May one Record April 15  
CITICORP <CCI> SEES DOUBLING IN RETAIL BANK NET. Citicorp expects net income in its individual banking sector to top one billion dlrs by 1993, compared with 462 mln dlrs in 1986, said Richard Braddock, head of Citicorp's individual banking division. "We can double our earnings over the next five to seven years," he told a banking analysts meeting, adding that this forecast may be on the conservative side. He said that bank card operations and the New York branch system would continue to turn in hefty profits but also picked out other developing areas, such as U.S. mortgage and international consumer, as major potential earners. Braddock and his sector heads made the following more specific predictions: - Cost of funds and net credit loss levels in the U.S. bankcard unit will taper off in coming years from 1986's relatively inflated levels. - Customer net revenue in the mortgage banking area will rise to 464.7 mln dlrs in 1987 from 374.3 mln in 1986. - The international consumer business will show 22 pct compound annual growth in earnings between 1986 and 1992. - Private banking earnings will hit 100 mln dlrs in 1987 and top 200 mln dlrs in 1992.  
WD-40 CO <WDFC> 2ND QTR FEB 28 NET. Shr 35 cts vs 40 cts Net 2,642,000 vs 3,017,000 Sales 19.1 mln vs 18.9 mln Six Mths Shr 69 cts vs 70 cts Net 5,178,000 vs 5,299,000 Sales 35.6 mln vs 33.8 mln  
NORTHERN INDIANA PUBLIC SVC <NI> AGAIN OMITS DIV. Northern Indiana Public Service Company said it again omitted its quarterly common stock dividend which would have been payable in May. NIPSCO said it has not paid a qtly dividend since December 1985 following an adverse decision by the Indiana Supreme Court denying amortization of about 191 mln dlrs NIPSCO invested in its Bailly N-1 project.  
BORMAN'S INC <BRF> DECLARES QTLY DIVIDEND. Qtly div five cts vs five cts prior Pay June 15 Record May 18  
GOTTSCHALKS INC <GOT> 4TH QTR NET. Shr 37 cts vs 50 cts Net 2,776,000 vs 2,756,000 Sales 46.9 mln vs 38.8 mln Avg shrs 7,508,000 vs 5,550,000 Year Shr 58 cts vs 55 cts Net 4,021,000 vs 3,005,000 Sales 125.9 mln vs 112.8 mln Avg shrs 7,090,000 vs 5,500,000  
CALIFORNIA MICROWAVE <CMIC> TAKES 3RD QTR CHARGE. California Microwave Inc said it will take non-recurring charges of 9.7 mln dlrs to pre-tax earnings in the third quarter ended March 31. The company said earnings from operations in the second half, ending June 30, 1987, excluding the charges, are expected to be in the break-even range. In the second half of 1986 net earnings were 2,297,000 dlrs, or 29 cts per share. The company said the charges relate to its telecommunications products area and three other areas. California Microwave previously estimated the write-downs in the six to eight-mln-dlr range. It said it will add to that a reserve for investment losses in Argo Communications Corp. Also to be included in the write-down are charges against its advances to an Arizona-based communications electronics firm the company has an option to acquire, it said. In addition, accruals are being made for costs associated with the company's reduction in its Sunnyvale work force. California Microwave said the write-downs should have a nominal cash impact, as the company already has paid for the assets being written down.  
CRS SIRRINE PLANS MAJOR RESTRUCTURING, WRITE OFF OF UP 43 MLN DLRS.  CRS SIRRINE PLANS MAJOR RESTRUCTURING, WRITE OFF OF UP 43 MLN DLRS  
H.F. AHMANSON AND CO <AHM> QTLY DIVIDEND. Shr 22 cts vs 22 cts prior qtr Pay June one Record May 12  
OXFORD INDUSTRIES INC <OXM> 3RD QTR FEB 27. Shr 25 cts vs 21 cts Net 2.8 mln vs 2.3 mln Revs 135.0 mln vs 119.0 mln Nine months Shr 80 cts vs 70 cts Net 8.9 mln vs 7.7 mln Revs 407.7 mln vs 403.7 mln  
<DIGIGRAPHIC SYSTEMS CORP> 4TH QTR OPER LOSS. Oper shr loss one ct vs loss seven cts Oper net loss 80,640 vs loss 787,738 Revs 933,183 vs 3,346,627 Avg shrs 6,122,378 vs 8,451,578 Year Oper shr loss 75 cts vs loss 1.10 dlrs Oper net loss 5,120,206 vs loss 9,288,996 Revs 5,846,962 vs 18,679,090 Avg shrs 6,805,951 vs 8,387,802 NOTE: Earnings exclude losses from discontinued operations of 178,437 dlrs, or three cts a share vs 154,767 dlrs, or two cts a share in the quarter and losses of 706,984 dlrs, or 10 cts a share vs 572,100 dlrs, or seven cts a share for the year 1986 year earnings exclude gain from early extinguishment of debt of 11,318,289 dlrs, or 1.66 dlrs a share  
COMPUTER IDENTICS CORP <CIDN> 4TH QTR. Shr loss 44 cts vs loss 20 cts Net loss 2.4 mln vs loss 880,000 Revs 2.4 mln vs 2.6 mln Year Shr loss 87 cts vs loss 11 cts Net loss 4.3 mln vs loss 494,000 Revs 9.0 mln vs 12.0 mln NOTE:1986 includes restructuring charges of 2.1 mln dlrs and loss of foreign affiliates of 2.0 mln dlrs. 1985 includes loss from foreign affiliates of 173,000 dlrs.  
MIKRON INSTRUMENT CO <MIKR> 1ST QTR JAN 31. Shr three cts vs four cts Net 30,969 vs 18,230 Revs 956,971 vs 702,994  
COMPREHENSIVE CARE CORP <CMPH> 3RD QTR NET. Qtr ended Feb 28 Shr 17 cts vs 22 cts Net 2,041,000 vs 3,329,000 Revs 46.6 mln vs 48.9 mln Nine mths Shr 65 cts vs 82 cts Net 9,290,000 vs 12.7 mln Revs 142.7 mln vs 139.8 mln  
VESTAR INC <VSTR> YEAR LOSS. Shr loss 98 cts vs loss 1.11 dlrs Net loss 3,863,000 vs loss 3,483,000 Revs 1,081,000 vs 799,000 Note: 4th qtr data not given.  
<STERLING BANCORP> YEAR NET. Shr 1.13 dlrs vs 87 cts Net 1,064,489 ca 780,712 Assets 106.8 mln vs 102.5 mln Note: 4th qtr data not given.  
FIRST NEW HAMPSHIRE BANKS INC DIV. Qtly div 15 cts vs 15 cts prior Payable May one Record April 10  
HOUSE OF FABRICS <HF> QUARTERLY DIVIDEND. Qtly div 12 cts vs 12 cts Pay July 1 Record June 12  
WEEKS PETROLEUM LTD <WPMA.MEL> CALENDAR 1986. Shr 16.7 cents vs 29.4 Final div nil vs same making nil vs same Pre-tax profit 21.31 mln dlrs vs 26.42 mln Net 10.84 mln vs 19.15 mln Turnover 17.17 mln vs 25.94 mln Other income 101.99 mln vs 125.18 mln Shrs 65.13 mln vs same. NOTE - Net is after tax 10.47 mln vs 7.27 mln, interest 2.58 mln vs 9.55 mln, depreciation 5.06 mln vs 7.61 mln and minorities nil vs same. Other income: 72.39 mln from sale of investments (103.04 mln 1985), interest 25.75 mln (21.49 mln), and dividends 1.64 mln (nil). Co is 93.7 pct owned by <Bell Resources Ltd>. Note - All figures in U.S. Dollars as the company is registered in Bermuda.  
JARDINE MATHESON PROFITS SEEN UP SHARPLY IN 1986. A strong performance by its retail businesses and affiliates will enable Jardine Matheson Holdings Ltd <JARD.HKG> to report on Friday a big leap in net profit in 1986, stock analysts said. They told Reuters they expect the firm to show earnings of between 420 mln and 450 mln H.K. Dlrs last year against 157 mln in 1985. The analysts also said they expect Jardine Matheson to pay a total dividend of 15 to 20 cents a share against 10 cents a share in 1985. James Capel (Far East) Ltd estimates Jardine Matheson's 1986 profits at 450 mln dlrs and attributes most of the income to retail sales. Analysts said the group's 7-Eleven retail stores and its franchises, among them Canon cameras, Christian Dior luxury goods and Mercedes Benz cars, produced a strong cash flow. Alan Hargreaves of Hoare Govett Asia Ltd also put Jardine Matheson's 1986 net profits at 450 mln dlrs and said he estimates pre-tax earnings from retail operations at about 465 mln dlrs against 339 mln in 1985. But Hargreaves said Jardine Matheson's earnings from its 35 pct stake in Hong Kong Land Co Ltd <HKLD.HKG> will fall to about 230 mln dlrs from 281 mln dlrs in 1985. The reduced contribution reflects the spin-off from Hong Kong Land of <Dairy Farm International Ltd> last September. Jardine gained a direct holding of 35 pct of Dairy Farm as a result of the spin-off. Analysts said Jardine will book revenues from its Dairy Farm stake for the final months of the year as part of its retail business, which will increase its overall retail income figures. Analysts said Jardine Matheson will also enjoy sharply increased revenues from financial services, mainly its 50 pct share of <Jardine Fleming Holdings Ltd>. Jardine Fleming yesterday reported record profits for 1986 of 209.5 mln dlrs against 104.7 mln in 1985. Analysts said Jardine Matheson made net interest payments of about 200 mln dlrs last year, slightly below the 213 mln dlrs of 1985, while the company's term debt remained at about the 1985 level of 2.7 billion dlrs. But Jardine was also subject to increased taxes of 340 mln dlrs last year against 292 mln in 1985, they said. Jardine Matheson is undergoing a series of reorganisations that will in effect turn it into a holding company for its diverse interests. It previously announced a plan to sell its stakes in both Hong Kong Land and Dairy Farm to newly created <Jardine Strategic Holdings Ltd> in which it has a 41 pct interest. A company statement issued last month said the firm will use the proceeds to repay all debt, leaving it with an additional 500 mln dlrs in cash on hand. Though Jardine Matheson will be deprived of a direct stake in the high-yield Hong Kong Land and Dairy Farm units, it is likely to develop its own business, analysts said. "The future of the stock will depend on the firm's ability to creatively structure some new acquisitions," said Hargreaves of Hoare Govett. He noted the firm has suggested financial services as a key sector, and he said it may add some insurance firms to its existing business.  
CHINA'S FIRST JOINT VENTURE BANK REPORTS PROFIT. China's first joint venture bank, Xiamen International Bank (XIB), reported a group net profit of about 14 mln Hong Kong dlrs in 1986, the bank's first full year of operation. General manager Liu Shuxun declined to give a 1987 profit forecast, saying targets were under study. Assistant general manager Wang Hongshan said the group's outstanding loans at end-1986 totalled 620 mln Hong Kong dlrs, up from 530 mln at end-1985. Deposits and interbank borrowings rose to 680 mln dlrs from 550 mln, he told Reuters. Liu said most of the group's profit came from the parent company rather than its two wholly-owned subsidiaries <Xiamen International Finance Co Ltd> in Hong Kong and <Luso International Bank Ltd> in Macao. The joint venture bank began operating in September 1985 but did not officially open until March 1986. Liu said the share in the joint venture of the foreign partner, Hong Kong-listed <Panin Holdings Ltd>, had been cut last year to 49 pct from 60 pct. This was done because foreign banks felt the XIB's reputation would be improved if the three Chinese partners collectively held a majority stake, he said. Liu said news reports about problems concerning Panin were unfounded, but he did not elaborate. Panin Holdings reported a loss of 1.99 mln Hong Kong dlrs in 1986 after a net profit of 268,000 dlrs in 1985. The Chinese partners are Industrial and Commercial Bank of China, Fujian branch, whose share rose to 23.5 pct from 15, Fujian Investment and Enterprise Corporation 17.5 pct (15) and Xiamen Construction and Development Corporation 10 pct (10). One foreign banker said Xiamen International Bank faced the same problems as foreign bank branches in trying to compete on unequal terms with state-owned banks. The foreign banking market in Xiamen is thin and almost saturated, he added. Officials of the joint venture bank said they benefitted from contacts made through its three Chinese partners. But the foreign banker, who asked not to be named, said it faced internal competition from the Industrial and Commercial Bank. Apart from Xiamen International Bank and the International Agricultural Development Bank planned by the World Bank and the state-owned Agricultural Bank of China, Xiamen has eight foreign bank branches or representative offices, mostly of Hong Kong or overseas Chinese banks.  
SWIRE PACIFIC LTD <SWPC.HKG> YEAR 1986. Shr "A" 138.9 H.K. Cents vs 97.4 (adjusted) Shr "B" 27.8 cents vs 19.5 Final div "A" 44 cents vs 32.3, making 62 vs 47 (adjusted) Final div "B" 8.8 cents vs 6.5, making 12.4 vs 9.4 Net 1.78 billion dlrs vs 1.23 billion Turnover 16.6 billion vs 13.7 billion Note - Net profits excluded extraordinary gains of 1.38 billion dlrs vs 59.1 mln. The non-recurrent earnings mainly derived from the firm's sale of a 15.75 pct stake in Cathay Pacific Airways Ltd <CAPH.HKG> in April. Note - Earnings per share and dividends have been adjusted for the firm's two-for-one bonus issue made in April. Note - Bonus issue one-for-five for both "A" and "B" shares against two-for-one. Note - Dividends payable June 2, books close April 16 to 24. Note - Net asset value per "A" share 6.94 dlrs vs 4.81 and per "B" share 1.39 dlrs vs 0.96.  
BAT Industries 1986 pretax profit 1.39 billion stg vs 1.17 billion.  BAT Industries 1986 pretax profit 1.39 billion stg vs 1.17 billion  
BAT INDUSTRIES PLC <BTI.L> 1986 YEAR. Shr 53.51p vs 45.72p Div 8.8p vs 7.35p making 14.3p vs 12.1p Turnover 19.17 billion stg vs 17.05 billion Operating profit 1.48 billion vs 1.29 billion Pretax profit 1.39 billion vs 1.17 billion Tax 524 mln vs 430 mln NOTE - The company said shareholders would be given the option of receiving dividend in cash, ordinary shares or combination of the two. Operating profit includes - Commercial activities 1.08 billion vs 988 mln Financial services 263 mln vs 135 mln Share of associated companies 139 mln vs 163 mln Investment income 150 mln vs 166 mln Interest paid 238 mln vs 286 mln Minorities 76 mln vs 63 mln Extraordinary credit 75 mln vs 34 mln debit Transfer to revaluation reserve 85 mln vs 106 mln Profit attributable 793 mln vs 673 mln Required inflation retention 77 mln vs 147 mln Trading profit 1.51 billion vs 1.29 billion Trading profit includes - Tobacco 764 mln vs 738 mln Retailing 211 mln vs 186 mln Paper 217 mln vs 168 mln Financial services 282 mln vs 135 mln  
SWIRE PLANS BONUS ISSUE ON HIGHER 1986 PROFITS. Swire Pacific Ltd <SWPC.HKG> said it plans for a one-for-five bonus issue for both its "A" and "B" shares following an earlier report of a 44.7 pct jump in 1986 net profits to 1.78 billion H.K. Dlrs. The company also announced final dividends of 44 cents per "A" share and 8.8 cents per "B" share against 32.3 and 6.5 cents a year ago. It recorded extraordinary gains of 1.38 billion dlrs which mainly derived from the sale in April of a 15.75 pct stake in Cathay Pacific Airways Ltd <CAPH.HKG> in line with the floatation of the airline.  
BASF U.S. PROFIT,TURNOVER BOOSTED BY ACQUISITIONS. BASF AG <BASF.F> said net profit of its U.S. Operating company, BASF Corp, rose last calendar year to 105 mln dlrs from 39 mln in 1985. Turnover rose by by more than one billion dlrs to 3.6 billion, the parent company said in a statement. The rise, however, partly reflected the inclusion of the first full business year of three acquisitions made in 1985. Excluding these, BASF Corp turnover rose four pct from 1985. Acquisitions were the high-performance connecting materials operations of Celanese Corp, Inmont Corp bought from United Technologies and American Enka bought from AKZO NV <AKZO.AS>. BASF said it expected a U.S. Investment of 240 mln dlrs in 1987, part of a five-year programme totalling one billion. U.S. Projects completed in 1986 included the second acrylic acid plant in Freeport, Texas, a technical centre in Southfield, Michigan, in which paint lines from automotive plants can be refitted, and the new agricultural research centre in Research Triangle Park in Durham, North Carolina. BASF said that work this year had begun in Geismar, Louisiana, on plants for production of special amines and polytetrahydrofuran, as well as for expansion of capacity for producing tetrahydrofuran.  
BICC PLC <BICC.L> 1986 YEAR. Shr 22.7p vs 20.3p. Final div 8.25p, making 11.75p vs 11p. Pre-tax profit 101 mln stg vs 92 mln. Attributable profit 45 mln vs 39 mln. Turnover 2.14 billion stg vs 2.11 billion. MORE  
NIPPON STEEL TO REDUCE DIVIDEND. Nippon Steel Corp <NSTC.T> plans to reduce its dividend to three yen in the year ending March 31 1987 from the five yen of 1985/86, a company spokesman said. The company estimated parent company current losses at 15 billion yen in 1986/87, including a gain of 95 billion yen from the sale of securities. This compares with a 36.07 billion yen profit a year earlier. Sales in 1986/87 are seen at 2,150 billion yen, down from 2,685 billion a year ago. Poor business prospects were attributed to the yen's rise and slow world steel demand. Nippon is expected to report parent company results in late May. Total 1986/87 crude steel production is estimated at 25.57 mln tonnes, down from 27.98 mln a year earlier. Crude steel production is likely to be below 1986/87 output but forecasts for profits and sales in the year starting April 1 are unavailable yet, he said.  
BAT SEES STRONG PERFORMANCE FROM ALL SECTORS. A strong performance from all BAT Industries Plc's <BTI.L> major sectors enabled the group's 1986 pretax profits to pass the one billion stg level for the third year running, Chairman Patrick Sheehy said in a statement. The group earlier reported a 19 pct rise in profits to 1.39 billion, which Sheehy said was achieved without any help from exchange rate fluctuations or acquisitions. Good results were achieved by its Argos and Saks Fifth Avenue in retailing and by Wiggins Teape and Appleton in paper. Tobacco accounted for about 50 pct of profit with a four pct gain to 764 mln stg and a two pct increase in world volume. The results were largely in line with analysts expectations and BAT shares firmed by two pence to 537p at 0955 GMT. BAT said the U.S. Brown and Williamson unit held most of its 1985 gains and increased profit 18 pct in dollar terms. Financial services saw profits double to 282 mln with both Eagle Star and Allied Dunbar achieving further growth. Allied Dunbar reported a 51 pct rise in life annual premiums to 39 mln stg. BAT said it increased new business by 38 pct in the last nine months after a relatively slow first quarter. Its permanent health insurance was now the market leader and its Unit Trust group was now the second largest in the U.K. Eagle Star general premiums rose 32 pct to 1.03 billion. Its life activities also grew 39 pct with better underwriting results in the second half. Cash flow was strong and the gross debt to equity ratio dropped to 41 pct from 51 pct. The net ratio, at 26 pct, left the group strongly placed to pursue its further development. Profits from paper and pulp grew 29 pct to 217 mln stg, nearly three times the 1982 level, with Wiggins Teape's sales rising 36 pct to pass one billion stg. BAT said in 1986 it had sold 88 BATUS stores in the U.S. For 644 mln dlrs and sold Grovewood Securities for 142 mln stg.  
BABCOCK INTERNATIONAL PLC <BABK.L> YEAR 1986. Div 4.7p making 8.7, an increase of 13.9 pct Shr 16.3p vs 17.9p adjusted Pretax profit 37.09 mln stg vs 34.55 mln Net 22.12 mln vs 24.13 mln Interest payable 8.10 mln vs 5.35 mln Share of associated co's 6.88 mln vs 5.42 mln Turnover 1.22 billion stg vs 1.10 billion  
DELTA GROUP <DLTL.L> YEAR TO JAN 3.. Shr net basis 24.8p vs 24.5p Shr nil basis 22.7p vs 20.9p Div 5p making 7.6p vs 6.5p Pretax profit 57.78 mln stg vs 50.61 mln Net after tax 37.47 mln vs 36.49 mln Outside shareholders interests 1.75 mln vs 1.32 mln Extraordinary debit 370,000 vs 1.93 mln Turnover 533.59 mln vs 555.81 mln Profit breakdown by activity - Electrical equipment 28.59 mln stg vs 27.60 mln Engineering 10.75 mln vs 11.13 mln Industrial services 18.78 mln vs 16 mln Corporate finance 340,000 vs 4.12 mln Making total pre-tax profit 57.78 mln vs 50.61 mln.  
BABCOCK EXPECTS FURTHER PROGRESS IN 1987. Babcock International Plc <BABK.L> said in a statement accompanying final results for 1986, showing pretax profits up to 37.09 mln stg from 34.55 mln in 1985, that overall further progress is expected in 1987. The predicted slowdown of the U.S. Automobile industry is affecting the North American group although the improved performance in the FATA European group during 1986 is expected to continue into this year. In the U.K. Overall profitability will improve when the Central Electricity Generating Board's ordering programme for both nuclear and fossil-fired fuels starts.  
KLOECKNER UND CO'S 1986 PROFIT FALLS ABOUT 20 PCT. Kloeckner & Co KGaA, the international trading group, said its 1986 domestic group net profit fell by around 20 pct against 1985, adding that the profit resulted largely from a writing back of reserves. The company, which gave no 1986 profit figures, posted a domestic group net profit of 41 mln marks in 1985. It said the 1986 profit was made possible through a 40 mln mark write-back of reserves that had been created to cover possible price rises. These reserves were no longer necessary because of recent declines in raw material prices. Kloeckner attributed the profit decline to the fall in prices as well as the lower value of the dollar. It said it would pay an unchanged dividend on its ordinary share capital, which is entirely in private hands and held largely by family foundations. Kloeckner's nominal 100 mark profit-participation certificates, issued in October 1986, will pay a likely yield of around 10 pct. Holders of the certificates are entitled to a quarter of the 1986 payment, or around 2.50 marks, the company added.  
SWIRE EXPECTS CONTINUED GROWTH THIS YEAR. Swire Pacific Ltd <SWPC.HKG> expects continued growth in all divisions this year though it sees problems in the marine sector, chairman Michael Miles said. He told reporters:"1987 has started well for Cathay Pacific Airways which looks forward to another good year... Swire Properties expects further good results both from properties under development for sale and from its investment property portfolio." He did not give any specific projections for earnings. The company earlier reported 46 pct higher 1986 net profits at 1.78 billion H.K. Dlrs from a year ago. Swire also had an extraordinary profit of 1.38 billion dlrs mainly from the sale of a 15.25 pct interest in Cathay Pacific Airways Ltd <CAPH.HKG>. Miles said the company will use the money to develop its business, primarily in Hong Kong. Swire's stake in Cathay was first reduced to 54.25 pct from 70 pct when Cathay was publicly floated, and then cut to 50.25 pct when Cathay issued new shares amounting to 12 pct of the enlarged capital to the state-owned <China International Trust and Investment Corp>. Cathay last week reported its 1986 profits rose to 1.23 billion dlrs from 777 mln a year ago. Miles said despite last year's rapid expansion in Cathay's flights and fleet, load factor is still holding up at 70 pct. He said Cathay's growth last year was the result of "a marginal increase in the revenue load factor coupled with savings in fuel costs." "At present fuel prices are stable and will remain stable for the rest of this year," he said, "though there might be a bit of increase later this year.'' Miles said Swire is not abandoning its offshore oil service operations, even though the marine sector is generally depressed. "Obviously the marine industry is not getting any better," he said. The real estate market remained strong and Swire last year revalued its property portfolio up 634 mln dlrs compared with an increase of 864.4 mln dlrs the previous year. Miles said he expects the property market to remain firm but said the firm has no available land for a major housing project such as its Taikoo Shing development on Hong Kong island now near completion. He said the company's 50 pct unit <Hongkong United Dockyard Ltd> is negotiating with the government for the development of an existing petroleum storage depot into a major housing estate. "But it's not as big as Taikoo Shing," he said.  
25-MAR-1987. 25-MAR-1987 
OCEAN TRANSPORT AND TRADING PLC <OTTL.L> YEAR 1986. Shr net basis 21.4p vs 17.5p Div 6.1p making 9p vs 6.5p Pretax profit 37.2 mln stg vs 31.9 mln Net after tax 25.7 mln vs 20.3 mln Minority interest 700,000 vs 1.1 mln Extraordinary debit 1.9 mln vs 3.5 mln Turnover 827 mln vs 766.9 mln Note - The company said the sale of the minority holding in OCL in 1986 has transformed the balance sheet and enables it to accelerate development.  
OLSON INDUSTRIES INC <OLSN> 4TH QTR NET. Oper shr 28 cts vs 1.16 dlrs Oper net 194,000 vs 1,255,000 Sales 27.5 mln vs 30.5 mln Year Oper shr 2.68 dlrs vs 63 cts Oper net 1,880,000 vs 684,000 Sales 100.5 mln vs 115.6 mln Avg shrs 700,086 vs 1,079,165 NOTE: 1986 net excludes tax credits of 1,042,000 dlrs in quarter and 1,603,000 dlrs in year. Net excludes discontinued operations gain 330,000 dlrs vs loss 385,000 dlrs in quarter and gain 485,000 dlrs vs loss 2,692,000 dlrs in year.  
OLSON <OLSN> TO HAVE LOSS FROM EGG UNIT SALE. Olson Industries Inc said it is in final negotiations on the sale of its remaining egg operations and expects the sale to generate a charge of about two mln dlrs against 1987 net income. The company said, however, that the sale will generate substantial cash flow to pay off bank debt and improve working capital, eliminate unmanageable effects on profits of the price instability of the egg business and allow it to concentrate on its plastics packaging business.  
ORACLE CORP <ORCL> 3RD QTR FEB 28 NET. Shr 16 cts vs eight cts Net 4,834,000 vs 2,052,000 Revs 34.9 mln vs 16.0 mln Avg shrs 31.1 mln vs 26.8 mln Nine mths Shr 26 cts vs 13 cts Net 8,006,000 vs 3,310,000 Revs 80.9 mln vs 34.5 mln Avg shrs 30.8 mln vs 26.3 mln NOTE: Share adjusted for two for one stock split. Current year net includes capitalized software costs of 1,295,000 dlrs in quarter and 3,701,000 dlrs in nine mths.  
ENTERRA CORP <EN> 4TH QTR LOSS. Shr loss 4.14 dlrs vs loss 19 cts Net loss 37.1 mln vs loss 1,712,000 Revs 27.3 mln vs 33.4 mln Year Shr loss 5.51 dlrs vs loss 73 cts Net loss 49.3 mln vs loss 6,544,000 Revs 109.0 mln vs 141.9 mln NOTE: 1986 net both periods includes 34.8 mln dlr weritedown of assets of services segment and Southeast Asian joint venture.  
JOHNSTOWN/CONSOLIDATED REALTY TRUST <JCT> NET. 4th qtr Shr 15 cts vs eight cts Net 1,800,000 vs one mln Year Shr 51 cts vs 1.10 dlrs Net 6,200,000 vs 13.2 mln NOTE: Net includes loan loss provisions of 14 cts shr vs 18 cts in quarter and 24 cts shr vs 36 cts in year.  
WASHINGTON FEDERAL SAVINGS <WFSL> QUARTERLY DIV. Qtly div 17 cts vs 17 cts Pay April 24 Record April 7 Note: year ago adjusted to reflect March 19 three-for-two stock split. (Washington Federal Savings and Loans Association)  
ROWLEY-SCHER <RSCH> TO HAVE LOSS FOR YEAR. Rowley-Scher Reprographics Inc said it expects to report an operating loss and a loss from the sale of its Mid South Repro subsidiary for the year ending MArch 31. Last year, the company reported earnings of 977,000 dlrs. Rowley-Scher did not disclose details of the sale of Mid South Repro. It said the sale has eliminated an unprofitable operation. The company also said it will open two new reprographic centers in the Washington/Baltimore area within the next three weeks, brining the total there to 11, and a new downtown Boston location in the same time period, brining the number in the Boston area to four.  
KAUFMAN AND BROAD HOME CORP <KBH> 1ST QTR FEB 28. Shr 17 cts vs seven cts Net 4,678,000 vs 1,856,000 Revs 110.5 mln vs 61.7 mln Avg shrs 27.0 mln vs 25.0 mln  
USAIR GROUP INC <U> SETS QUARTERLY. Qtly div three cts vs three cts prior Pay April 30 Record April 16  
<PALOMA PETROLEUM LTD> YEAR NET. Shr 32 cts vs 29 cts Net 3,320,206 vs 2,990,695 Revs 13.5 mln vs 14.9 mln  
<AMERICAN RESOURCE CORP LTD> YEAR NET. Shr five cts vs 51 cts Net 2,300,000 vs 22,500,000 Revs not given Note: Prior shr and net include 20.3 mln U.S. dlr gain on sale of equity holdings Results in U.S. funds  
ONE VALLEY BANCORP <OVWV> RAISES QUARTERLY. Qtly div 26 cts vs 25 cts prior Pay April 15 Record March 31 NOTE: One Valley Bancorp of West Virginia Inc.  
NATIONAL DATA CORP <NDTA> 3RD QTR FEB 28 NET. Shr 31 cts vs 26 cts Net 3,516,000 vs 2,972,000 Revs 40.0 mln vs 36.3 mln Avg shrs 11.4 mln vs 11.2 mln Nine mths Shr 89 cts vs 73 cts Net 10.0 mln vs 8,146,000 Revs 116.8 mln vs 105.0 mln Avg shrs 11.3 mln vs 11.1 mln  
NVHOMES <NVH> SETS TWO-FOR-ONE SPLIT. NVHomes LP said its board declared a two-for-one split of Class A units, payable to shareholders of record on April 20. It said certificates will be distributed about two weeks after the record date.  
VANGUARD TECHNOLOGIES INTERNATIONAL INC <VTI>. Shr 19 cts vs 10 cts Net 653,464 vs 287,606 Revs 10.6 mln vs 7,600,000 Year Shr 68 cts vs 46 cts Net 2,309,181 vs 1,408,813 Revs 38.4 mln vs 26.0 mln  
THOMSON MCKINNON U.S. GOVERNMENT FUND DIVIDEND. Mthly div 7.3 cts vs 7.5 cts in prior month Payable April six Record Marcxh 30  
THOMSON MCKINNON INCOME FUND DIVIDEND. Mthly div 8.5 cts vs 9.2 cts in prior month Payable April six Record Marcxh 30  
(OAKRIDGE HOLDINGS INC) 2ND QTR DEC 31 NET. Shr 48 cts vs four cts Net 882,000 vs 82,000 Sales 968,000 vs 784,000 Six mths Shr 53 cts vs 11 cts Net 970,000 vs 202,000 Sales 2,001,000 vs 1,521,000 NOTE: 1986 net includes a gain of 26 cts a share from the sale of a funeral home, and tax credits of 20 cts. 1985 net includes tax credits of one cent in the quarter and 3.7 cts in the six months period.  
GENERAL COMPUTER CORP <GCCC> 3RD QTR FEB 28 NET. Shr 10 cts vs 20 cts Net 146,000 vs 230,000 Revs 3,766,000 vs 3,271,000 Avg shrs 1,458,000 vs 1,125,000 Nine mths Shr 15 cts vs 58 cts Net 212,000 vs 653,000 Revs 10.6 mln vs 9,561,000 Avg shrs 1,458,000 vs 1,125,000  
AVATAR HOLDINGS INC <AVTR> YEAR NET. Oper shr 32 cts vs seven cts Oper net 2,599,000 vs 550,000 Revs 94.4 mln vs 69.4 mln NOTE: Net excludes tax credits of 1,405,000 dlrs vs 3,538,000 dlrs.  
PERCEPTION TECHNOLOGY <PCEP> TO TAKE CHARGE. Perception Technology Corp said it expects to take a charge of about 686,000 dlrs or 19 cts per share against earnings for the second quarter ended March 31 due to the bankruptcy proceeding of customer T.C. of New York Inc. Perception said it has outstanding lease receivables from T.C. of about 2,480,000 dlrs. It said the exact amnount of the charge will depend on the extent of recovery of the leased equipment involved and on arrangements that might be made with the bankruptcy court on the equipment.  
HORIZON BANK <HRZB> SETS STOCK SPLIT. Horizon Bank said its board declared a three-for-two stock split, payable April 21 to holders of record April Seven.  
<ACKERLY COMMUNICATIONS INC> YEAR LOSS. Shr loss 1.44 dlrs vs loss 1.50 dlrs Net loss 10.1 mln vs loss 8,866,000 Revs 122.3 mln vs 112.5 mln Avg shrs 7,671,855 vs 6,520,928  
VICORP RESTAURANTS INC <VRES> 1ST QTR FEB 15 NET. Shr profit 1.17 dlrs vs loss 12 cts Net profit 11.3 mln vs loss 1,038,000 Revs 104.6 mln vs 128.7 mln NOTE: Current year net includes gain 9,500,000 dlrs from the sale of its specialty restaurants unit, charge 1,200,000 dlrs from addition to insurance reserves, 4,600,000 dlr tax credit and 660,000 dlr charge from debt repayment.  
PIONEER-STANDARD ELECTRONICS INC <PIOS> PAYOUT. Qtly div three cts vs three cts prior Pay May One Record April Eight  
FABRI-CENTERS <FCA> 4TH QTR ENDS JAN 31 NET. Shr 40 cts vs 41 cts Net 1,979,000 vs 2,101,000 Revs 67.7 mln vs 63.6 mln 12 mths Shr 36 cts vs 20 cts Net 1,798,000 vs 1,034,000 Revs 239.4 mln vs 233.2 mln  
TSENG LABORATORIES INC <TSNG> 4TH QTR NET. Shr profit one ct vs loss nil Net profit 200,052 vs loss 56,782 Revs 2,394,198 vs 706,393 Avg shrs 17.8 mln vs 19.8 mln Year Shr profit one ct vs profit one ct Net profit 258,125 vs profit 164,553 Revs 4,225,731 vs 3,027,892 Avg shrs 17.9 mln vs 19.5 mln  
PARK ELECTROCHEMICAL CORP <PKE> SETS PAYOUT. Qtly div three cts vs three cts prior Pay May 20 Record April 20  
RUSS TOGS INC <RTS> 4TH QTR JAN 31 NET. Shr 82 cts vs 76 cts Net 4,200,000 vs 3,954,000 Sales 58.7 mln vs 60.6 mln Year Oper shr 2.68 dlrs vs 2.47 dlrs Oper net 13.8 mln vs 13.0 mln Sales 274.3 mln vs 276.8 mln NOTE: Prior year net excludes loss 1,120,000 dlrs from discontinued operations and loss on disposal of 922,000 dlrs.  
UTILICORP <UCU> SEES HIGHER 1987 FIRST QUARTER. Utilicorp United Corp said it expects to report 1987 first quarter earnings of about 12 mln dlrs or about 1.12 dlrs a share and revenues of about 190 mln dlrs. In the comparable quarter a year ago, Utilicorp earned 8.5 mln dlrs or 87 cts on revenues of 203 mln dlrs. There are 9.6 mln shares outstanding this year, up from the 8.5 mln shares in 1986, Utilicorp's president Richard Green told financial analysts here. First quarter 1987 results include one month contribution of West Virginia Power, which became a division on March 1, 1987, Green said in remarks prepared for delivery to analysts. Higher earnings for the period reflected reduced operating and maintenenace expenses and about 10 mln dlrs in rate increases in Iowa, Minnesota, Kansas and Colorado, he said. However, Utilicorp's Missouri Public Service division is experiencing the effect of a 5.9 pct rate reduction authorized in September 1986, he noted. Of Utilicorp's total revenues expected for the 1987 first quarter, about 43 mln dlrs will be derived from electric operations and about 147 mln dlrs will come from gas operations, he said. Operating income derived from electric operations in the first three months of 1987 is estimated to be eight mln dlrs, while the contribution from gas operations will be about 10 mln dlrs, Green said. Green told analysts that Utilicorp received regulatory approval from various states and the Federal Energy Regulatory Commission to reincorporate in Delaware, effective April one. Utilicorp signed an agreement with Cominco Ltd of Vancouver to extend the deadline to May 31, 1987, for completion of the company's purchase of West Kootenay Power and Light of British Columbia, due to a longer than expected regulatory approval process, he said. Hearings were completed in February and a decision by the British Columbia Utilities Commission on the 60 mln dlrs purchase by Utilicorp is pending, he said.  
TSENG <TSNG> SEES SALES INCREASE FIRST QTR 1987. Tseng Laboratories Inc said it expects first quarter 1987 sales to exceed total sales for the entire 1986 year, and said it expects earnings for the quarter to grow at a faster rate than sales. Tseng posted total revenues for 1986 of 4,255,731, and net income of 258,125, or 14 cts per share. Jack Tseng, president of the company, attributed the high expectations to increased orders from major costomers, as well as accelerated business from its growing reseller network. Tseng posted first quarter 1986 sales of 549,950, and net income of 19,163, the company said.  
CONCEPT INC <CCPT> 2ND QTR FEB 28 NET. Shr 11 cts vs five cts Net 656,000 vs 314,000 Sales 8,868,000 vs 6,499,000 Avg shrs 5,823,000 vs 5,705,000 1st half Shr 22 cts vs 13 cts Net 1,296,000 vs 795,000 Sales 17.3 mln vs 13.5 mln Avg shrs 5,809,000 vs 5,973,000 NOTE: Share adjusted for five-for-four split in February 1987.  
LIFE OF INDIANA CORP <LIFI> 4TH QTR LOSS. Shr loss two cts vs profit six cts Net loss 103,000 vs profit 319,000 Revs 4,357,000 vs 6,494,000 Avg shrs 5,415,185 vs 5,646,185 Year Shr profit 22 cts vs profit 10 cts Net profit 1,236,000 vs profit 570,000 Revs 22.2 mln vs 24.8 mln Avg shrs 5,638,596 vs 5,646,185 NOTE: 1986 net includes tax credits of 30,400 dlrs in quartger and 58,000 dlrs in year.  
B.F. SAUL REAL ESTATE INVESTMENT <BFS> PAYOUT. Qtly div five cts vs five cts prior Pay April 30 Record April 10 NOTE: B.F. Saul Real Estate Investment Trust.  
MAYTAG <MYG> SEES CAPITAL SPENDING UP IN 1987. Maytag Co said it expects capital spending in 1987 to increase to about 60 mln dlrs from 49 mln dlrs in 1986. Maytag chairman and chief executive officer Daniel Krumm said the company plans a "significant" investment at its Admiral refrigerator plant in Galesburg, Ill., as well as continued spending for product improvement and increased efficiency at other Maytag facilities. Earlier, the company reported 1986 net income of 111.2 mln dlrs, or 2.57 per share, versus net income of 124.9 mln dlrs, or 2.89 dlrs a share, in 1985.  
COMMUNICATIONS AND CABLE INC <CCAB> 1ST QTR NET. Oper shr seven cts vs loss nil Oper net 988,000 vs loss 52,000 Revs 2,267,000 vs 791,000 NOTE: Net excludes gains from discontinued operations of 65,000 dlrs vs 75,000 dlrs. Current year net includes gain 1,025,000 dlrs from sale of cellular telephone investment. Prior year figures restated for discontinued operations.  
WESTWOOD ONE INC <WONE> 1ST QWTR FEB 28 NET. Shr 12 cts vs eight cts Net 1,440,000 vs 830,000 Revs 15.9 mln vs 11.2 mln Avg shrs 12,342,000 vs 10,826,000  
TRICENTROL TO CONCENTRATE ON PROVEN RESERVES. Tricentrol Plc <TCT.L> said it will concentrate most of its efforts this year on its proven oil and gas reserves in order to maximise benefits to shareholders in the mid to long-term. It said in a statement "We are confident that substantial development funds will be available to Tricentrol and that we will be able to minimise further disposal of our interests." Tricentrol wrote off 57.5 mln stg on the reorganisation of its North American operations last year, when oil prices plunged. The group incurred a 1986 net loss of 3.7 mln stg against a 25.4 mln profit the previous year.  
BROOKLYN UNION GAS CO <BU> SETS PAYOUT. Qtrly div 41.5 cts vs 41.5 cts prior Pay May One Record April 6  
LILLY INDUSTRIAL COATINGS INC <LICIA> 1ST QTR. Feb 28 end Shr 18 cts vs 13 cts Net 1,541,000 vs 1,122,000 Sales 36.7 mln vs 33.5 mln Avg shrs 8,517,000 vs 8,441,000 NOTE: Share adjusted for five pct stock dividend in August 1986.  
MET-PRO CORP <MPR> 4TH QTR ENDS JAN 31 NET. Shr 19 cts vs 18 cts Net 362,692 vs 347,868 Revs 6,311,808 vs 5,827,538 12 mths Shr 60 cts vs 80 cts Net 1,152,746 vs 1,534,503 Revs 24.7 mln vs 25.2 mln  
CENTRAL MAINE POWER CO <CTP> SETS QUARTERLY. Qtly div 35 cts vs 35 cts prior Pay April 30 Record April 10  
PEP BOYS <PBY> SETS SPLIT, RAISES QUARTERLY. Manny, Moe and Jack Inc said its board declared a three-for-one stock split and raised the quarterly dividend to six cts presplit from 5-1/2 cts. Both are payable July 27 to holders of record July One and the The split is subject to shareholder approval at the May 18 annual meeting of an increase in authorized common shares to 500 mln from 40 mln, the company said.  
PEP BOYS - MANNY, MOE AND JACK INC <PBY> 4TH QTR. Jan 31 end Shr 45 cts vs 37 cts Net 8,349,000 vs 6,187,000 Sales 126.7 mln vs 103.7 mln Year Shr 1.55 dlrs vs 1.29 dlrs Net 28.1 mln vs 21.1 mln Sales 485.9 mln vs 388.9 mln NOTE: Latest year net includes three cts shr gain from sale of assets.  
HOVNANIAN ENTERPRISES <HOV> EARNINGS TO RISE. Hovnanian Enterprises Inc said the company's earnings for year would exceed the 1.65 dlrs a share previously announced and could go as high as 1.75 dlrs for fiscal year ended  Feb 28, 1987. The company posted net earnings of 11.5 mln dlrs, or 1.72 dlrs per share, on revenues of 199.3 mln dlrs for fiscal year 1986. These figures reflect two three-for-two stock splits in March and August 1986. At the Annual Drexel Burnham Lambert Construction Conference here, Hovnanian executive vice presidnt Ara Hovnanian said the company expects an earnings range of between 2.35 dlrs and 2.55 dlrs per share for fiscal 1988. Total revenues for the year ending Feb 29, 1988, should be between 320 mln and 350 mln, he said.  
SUNSTAR FOODS INC <SUNF> 2ND QTR FEB 28 NET. Shr 23 cts vs not reported Net 282,000 vs 1,000 Sales 18.6 mln vs 18.7 mln Six mths Shr 48 cts vs 17 cts Net 583,000 vs 213,000 Sales 37.8 mln vs 37.5 mln NOTE: 1987 six months net includes a loss from discontinued operations equal to two cts a share. 1986 net includes losses from discontinued operations of four cts in the quarter and six cts in the six months.  
TCBY ENTERPRISES <TCBY> SPLITS STOCK. TCBY Enterprises Inc said its board has approved a three-for-two split of its common stock with a distribution to be made on April 24 to stockholders of record on April 9. The split will increase the number of outstanding shares to over 26 mln from about 17.3 mln shares now, the company said. TCBY Enetrprises is a franchisor and operator of retail stores specializing in frozen yogurt-related treats.  
RAYTHEON CO <RTN> SETS QUARTERLY. Qtly div 45 cts vs 45 cts prior Pay April 30 Record April 10  
P.H. GLATFELTER CO <GLP> INCREASES DIVIDEND. P.H. Glatfelter said its board increased its quarterly dividend on its common stock to 14 cts per share, from 12.5 cts per share the prior quarter. It said the dividend is payable May 1, 1987, to shareholders of record April 15, 1987. In addition, the company said it authorized the repurchase of up to an additional one mln shares of its common stock. On March 27, 1985, the board had authorized the repurchase of up to two mln shares, as adjusted for a two-for-one split, effected in April 1986, the company said. The company said 521,508 shares may still be repurchased under the 1985 authorization. It added any shares repurchased would be added to the treasury and will be available for future issuance. The company said it has no present plans to issue any of the shares which may be repurchased. The company said it presently has 24,614,352 common shares outstanding.  
LIFE OF INDIANA CORP <LIFI> 4TH QTR LOSS. Shr loss 19 cts vs profit 57 cts Net loss 103,005 vs profit 319,344 Year Shr profit 22 cts vs profit 10 cts Net profit 1,236,347 vs profit 570,222  
ROSS STORES INC <ROST> 4TH QTR JAN 31 LOSS. Shr loss 1.30 dlrs vs profit 29 cts Net loss 33.4 mln vs profit 7,386,000 Sales 168.2 mln vs 128.4 mln Year Shr loss 1.61 dlrs vs profit 30 cts Net loss 41.4 mln vs profit 7,055,000 Sales 527.5 mln vs 366.7 mln NOTE: Latest year net both periods includes 39.4 mln dlr provision for closing 25 underperforming stores.  
NAVISTAR <NAV> STILL EXPECTS HIGHER 1987 NET. Navistar International Corp chairman Donald Lennox repeated that benefits from recapitalization are likely to boost future earnings for fiscal 1987. Lennox told the annual meeting that future quarterly and full year earnings from ongoing operations should be "significantly above 1986 results." In his remarks, Lennox said management has no plans to recommend reinstatement of the company's common stock dividend in the foreseeable future. He said the outlook for the medium duty truck market continues to point to little or no change. But recent order receipts indicate a "firmer tone in the heavy duty truck segment," which could result in a five to eight pct increase in industry shipments for the full year, he said. After restructuring under the holding company format, the company's present truck and engine subsidiary will be known as Navistar International Transportation Corp. Neil Springer currently president and chief operating officer of Navistar International was named chairman of the new subsidiary. James Cotting, now vice chairman and chief financial officer, was named to succeed Lennox as chairman and chief executive officer of Navistar International Corp. Lennox will retire March 31. Shareholders at the meeting approved a change in the company's structure to a holding company format, to be effective April 1.  
CORRECTED-LILLY INDUSTRIAL COATINGS INC <LICIA>. 1st qtr Feb 28 end Shr 18 cts vs 13 cts Net 1,541,000 vs 1,122,000 Sales 39.7 mln vs 33.5 mln Avg shrs 8,517,000 vs 8,441,000 NOTE: Share adjusted for five pct stock dividend in August 1986. Company corrects current year sales.  
BAT SHARES UNDERVALUED, SAY STOCK MARKET ANALYSTS. BAT Industries Plc <BTI.L> 1986 results, which were at the upper end of market expectations, showed the company was in a strong position and that its shares were probably undervalued, share analysts said. BAT shares were down at 524p in late afternoon trading after a previous 535p close. They touched a high of 538p earlier on news of a 19 pct rise in annual profits to 1.39 billion pre-tax. Stock market analysts said today's generally weak stock market plus unwinding of positions after heavy buying of BAT shares in the run-up to the results caused the fall in the share price. "In the current market, people almost expect companies to beat expectations," said one analyst, adding that pretax profits of 1.35 to 1.40 billion stg had been forecast. BAT's 1986 figure of 1.39 billion stg compared with a 1985 pretax profit of 1.17 billion. Brokers noted that BAT's shift away from its underperforming industries and the decreasing share of the tobacco portion of the group were seen as good signs. BAT Chairman Patrick Sheehy told a news conference that the tobacco sector of the company had declined to 50 pct from 74 pct four years ago. Sheehy said he could see the tobacco portion of the company declining further as other sectors increased in importance. He said BAT was looking to expand in the area of financial services, in particular in the U.S. Sheehy also said the group had "no sizeable acquisitions" in sight in the near future. Analysts said BAT's increasingly good performance in the U.K. Insurance area was encouraging. Its declining debt-to-equity ratio of currently about 16 pct also made it likely that BAT would soon be looking to make major acquisitions, they said.  
INT'L BROADCASTING <IBCA> SETS REVERSE SPLIT. International Broadcasting Corp said shareholders at its annual meeting approved a one for 25 reverse stock split. The split will be effective after completion of filing requirements, it said. New certificates will be needed, it added. The media company said it currently has 40,950,000 common shares issued and outstanding and, upon completion of the reverse split, will have 1,638,000 shares outstanding.  
BI INC <BIAC> SETS REVERSE SPLIT. BI Inc said it is implementing a one-for-15 reverse split to shareholders of record today. It said any fractional shares will be redeemed for cash, reducing its free-trading stock in public hands to 1,300,000 shares from 20 mln and its total shares outstanding to 1,993,000 from 29.9 mln. Shareholders approved the reverse split in October.  
BASF CORP YEAR NET. Net 105 mln dlrs vs 39 mln Sales 3.6 billion vs 2.6 billion NOTE: Wholly-owned by <BASF AG> of West Germany.  
MONTANA POWER CO <MTP> VOTES QUARTERLY DIVIDEND. Qtly div 67 cts vs 67 cts prior qtr Pay 30 April Record 10 April  
TEAM INC <TMI> 3RD QTR FEB 28 NET. Shr profit five cts vs loss 18 cts Net profit 91,000 vs loss 355,000 Revs 11.5 mln vs 11.7 mln Nine mths Shr profit six cts vs loss 1.45 dlrs Net profit 127,000 vs loss 2,846,000 Revs 31.8 mln vs 34.9 mln  
TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT.  TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT  
RSI CORP <RSIC> 2ND QTR FEB 28 NET. Shr 33 cts vs 13 cts Net 2,266,000 vs 849,000 Revs 24.1 mln vs 16.0 mln 1st half Shr 61 cts vs 24 cts Net 4,236,000 vs 1,619,000 Revs 47.4 mln vs 33.5 mln NOTE: Share after stock splits. Net includes discontinued operations loss four cts shr vs nil in quarter and loss seven cts vs gain one ct in half.  
RCM TECHNOLOGIES INC <RCMT> 1ST QTR JAN 31 LOSS. Shr loss one ct vs loss one ct Net loss 89,844 vs loss 85,731 Revs 3,384,726 vs 4,646,285  
MCCLAIN INDUSTRIES INC <MCCL> 1ST QTR DEC 31 NET. Shr 24 cts vs 13 cts Net 380,325 vs 211,183 Sales 5,046,578 vs 3,941,764 NOTE: Current year net includes gain from sale of Sterling Heights, Mich., plant of 174,000 dlrs.  Another 698,000 dlrs of gain from sale sale has been treated as deferred income.  
TODD SHIPYARDS <TOD> OMITS COMMMON DIVIDEND. Todd Shipyards Corp said it omitted payment of the quarterly dividend on its common stock and lowered the dividend on its series A preferred stock to 75 cts from 77 cts a share. Todd said the 75 ct preferred dividend will be paid May one to shareholders of record April 15. The company said it omitted the common dividend to cover both losses from a commercial ship conversion contract and increased reserves for previously announced discontinued shipyard operations. In addition, the company said its lenders agreed to temporarily reduce the net worth requirement of its revolving credit and term-loan pact to 140 mln dlrs from 130 mln. The reduction will hold through May 15, it said. Todd said the reduction in the net worth requirement allowed for the payment of the preferred dividend and prevented it from violating covenants of its credit agreement. The company said it is also negotiating with its lenders to extend the reduced net worth terms beyond May 15. Todd added that it has suffered financially because of the U.S. Navy's unwillingness to release certain retentions under completed ship construction contracts and a general decrease in U.S. military spending.  
IMO DELAVAL <IMD> SETS INITIAL DIVIDEND. Imo Delaval said its board declared an initial quarterly dividend of 14 cts per share, payable April 24 to holders of record on April 6.  
NATIONAL COMPUTER SYSTEMS INC <NLCS>4TH QTR NET. Shr 25 cts vs 31 cts Net 4,798,000 vs 5,380,000 Revs 65.3 mln vs 58.2 mln Avg shrs 19.2 mln vs 17.5 mln Year Shr 84 cts vs 89 cts Net 15,750,000 vs 15,191,000 Revs 262.1 mln vs 215.8 mln Avg shrs 18.8 mln vs 17.1 mln  
CONTINENTAL HEALTH AFFILIATES INC <CTHL> 4TH QTR. Shr 10 cts vs five cts Net 512,000 vs 230,000 Revs 16.8 mln vs 9,025,000 Year Shr 55 cts vs 34 cts Net 2,662,000 vs 1,541,000 Revs 57.5 mln vs 32.3 mln  
ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN.  ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN  
MIDDLE SOUTH <MSU> TO FORM NEW DIVIDEND POLICY. Middle South Utilities Inc is taking a conversative approach to formulating a new common stock dividend policy, chairman Edwin Lupberger said. He told securities analysts that when the company's common dividend is resumed, "the initial rate will appear conservative to you by industry standards and in relation MSU's net income and cash flow." "Our progress will determine how soon we can reinstate a dividend to our common stockholders, he said." The company last paid a common dividend of 44.5 cts a share in July 1985. Lupberger told the analysts that the company's primary objective is "to create financial strength, enough strength so that what happened to us and our stockholders over the past couple of years never happens again." The company has faced regulatory challenges to rates proposed to cover the cost of its Grand Gulf nuclear plant. He said Middle South's net income is expected to post "modest growth" over the next three years. In 1986, the company earned 451.3 mln dlrs or 2.21 dlrs a share on revenues of 3.49 billion dlrs. Lupberger said, "A good portion of the improvement projected for the next three years comes from keeping the lid on operating and maintenance expenses."  
HERSHEY OIL CORP <HSO> 4TH QTR LOSS. Shr loss 19 cts vs loss 2.37 dlrs Net loss 1,140,000 vs loss 13,608,000 Revs 1,069,000 vs 1,940,000 Year Shr loss 53 cts vs loss 2.34 dlrs Net loss 3,012,000 vs loss 13,433,000 Revs 4,945,000 vs 6,705,000  
EG AND G INC <EGG> SETS QUARTERLY. Qtly div 14 cts vs 14 cts prior Pay May Eight Record April 17  
<ENCOR ENERGY CORP INC> YEAR LOSS. Shr not given Net loss 406.6 mln vs profit 35.4 mln Revs 138.1 mln vs 211.9 mln Note: 1986 net includes 545.7 mln dlr asset writedown before 139.2 mln dlr recovery of deferred taxes. 48 pct-owned by Dome Petroleum Ltd <DMP>.  
<ASTA GROUP INC> UNIT IN LOAN PURCHASE. Asta Group Inc said its 50 pct owned Liberty Service Corp affiliate has purchased about 50 mln dlrs face value of credit card installment receivables from a major financial institution it did not name for a significant discount from face value. It said the portfolio consists mostly of charged off loans. The company also said it expects to realize a profit of about 300,000 dlrs on its 25 pct interest in the Briarcliff Manor condominium project in New York, with about 140,000 dlrs of the profit being reflected in the year ending September 30.  
ARDEN INTERNATIONAL <AIKI> 4TH QTR DEC 27 NET. Oper shr one ct vs two cts Oper net 30,000 vs 62,000 Revs 2,315,000 vs 2,355,000 Year Oper shr four cts vs nine cts Oper net 95,000 vs 204,000 Revs 9,214,000 vs 9,950,000 Avg shrs 2,492,000 vs 2,351,000 NOTE: Full name is Arden International Kitchens Inc More  
COMBUSTION ENGINEERING<CSP> SEES 1ST QTR NET OFF. Combustion Engineering Inc said it expects first quarter earnings to be 20 to 25 pct below the year-ago 13.6 mln dlrs, mainly due to financing costs resulting from the January 1987 acquisition of AccuRay Corp. The company said it has filed for an offering of four mln common shares and 150 mln dlrs of subordinated debentures due 2017, with proceeds to be used to refinance the short-term bank debt incurred for the AccuRay acquisition, to finance other costs of the transaction and for general corporate purposes. Combustion said 3,500,000 shares will be sold in the U.S. and the remainder overseas. Combustion paid about 218 mln dlrs for AccuRay, a maker of computer-based measurement and control systems used in pulp and paper mills. The company said it expects to release first quarter results in the third week in April. Combustion said it expects further restructuring of core businesses -- particularly Lummus Crest -- this year through staff reductions downsizings and the consolidation of facilities. Combustion said the restructuring at Lummus Crest is expected to substantially reduce but not eliminate this year losses in the Engineering and Construction segment. But it said improvement at Lummus Crest is expected to be approximately offset by a number of factors, including a somewhat lower level of earnings in the Power Generation segment than in 1986, financing costs of the AccuRay acquisition, costs associated with integrating AccuRay technology and operations and delays in waste to energy projects.  
25-MAR-1987. 25-MAR-1987 
PAN ATLANTIC RE INC <PNRE> 4TH QTR NET. Oper shr 15 cts vs 1.07 dlrs Oper net 372,000 vs 2,601,000 Year Oper shr 80 cts vs 61 cts Oper net 1,952,000 vs 1,491,000 NOTE: Net excludes realized investment loss 13,000 dlrs vs gain 986,000 dlrs in quarter and gains 1,047,000 dlrs vs 1,152,000 dlrs in year. 1986 year net excludes tax credit 919,000 dlrs.  
QUAKER CHEMICAL CORP <QCHM> SETS QUARTERLY. Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April 30 Record April 17  
MIDDLE SOUTH <MSU> TO CONSIDER DIVIDEND. Middle South Utilities Inc will not consider payment of a common stock dividend until there is another ruling on a Mississippi Supreme Court order rolling back rates at the company's Mississippi Power and Light Co subsidiary, chairman Edwin Lupberger said. He told security analysts Middle South was close to recommending resumption of the common stock dividend when the Mississippi court ordered the rate rollback. Following the order, he noted, the unit cancelled a planned sale of preferred stock. Middle South has petitioned the court for a rehearing or a stay of the order while it is being appealed.  
U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS.  U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS  
U.S. SHOE CORP <USR> 4TH QTR JAN 31 NET. Shr 31 cts vs 56 cts Net 13.7 mln vs 25.2 mln Sales 610.9 mln vs 575.9 mln Avg shrs 45.0 mln vs 44.8 mln Year Shr 57 cts vs 1.46 dlrs Net 25.5 mln vs 64.9 mln Sales 2.00 billion vs 1.92 billion Avg shrs 45.0 mln vs 44.5 mln NOTE: Current year net both periods includes gain five cts shr from sale of Just for Kids! and Giggletree mail order catalogs and charges of 10 cts shr from writedowns of assets related to the closing of linens and domestics stores and leased departments and of leased shoe departments. Year net includes LIFO inventory charges six cts shr vs two cts shr.  
VERTEX INDUSTRIES INC <VETX> 2ND QTR JAN 31 NET. Oper shr loss three cts vs loss four cts Oper loss 40,870 vs loss 39,827 Revs 584,855 vs 727,432 Six mths Oper shr loss two cts vs loss two cts Oper loss 24,311 vs loss 26,947 Revs 1,246,992 vs 1,497,251 NOTE: Current periods exclude net gain of 150,865 dlrs from termination of retirement plan for salaried employees. Also excludes gain of 83,100 dlrs from in current qtr and gain 90,400 dlrs in six mths from benefit of tax loss carryforwards. Company went public in September 1986.  
NORTHERN STATES POWER CO <NSP> VOTES QUARTERLY. Qtly div 47-1/2 cts vs 47-1/2 cts prior qtr Pay 20 April Record 6 April  
SUMMIT TAX EXEMPT BOND FUND <SUA> SETS PAYOUT. Qtrly div 40 cts vs 40 cts prior Pay  Aug  14, 1987 Record April One, 1987  
JOHN LABATT SEES GOOD FOURTH QUARTER, YEAR. <John Labatt Ltd> anticipates a good fourth quarter and a new peak in sales and earnings for the fiscal year ending April 30, president Peter Widdrington told financial analysts. He would not make any specific forecast, but said he was optimistic for further growth in fiscal 1988 in the company's brewing and food products operations. Labatt's earnings rose to 92.8 mln dlrs in the nine months ended January 31 from year-earlier 78 mln dlrs. Revenue for the nine months rose to 3.20 billion dlrs from 2.70 billion dlrs. Widdrington said Labatt's three-year business plan, now being updated, targets total sales of about six billion dlrs, including 2.50 billion dlrs in the U.S. Labatt, Canada's leading brewer, has expanded in the U.S. food products industry by acquisitions. Widdrington said Labatt's strategy for U.S. expansion stemmed partly from its strong market position in the Canadian food and beverage industry. The U.S. share of revenues for this year will be about 35 pct, rising to 40 pct in fiscal 1988, he said.  
WASHINGTON GAS LIGHT CO <WGL> HIKES PAYOUT. Qtly div 45 cts vs 44 cts prior Pay May one Record April 10  
FERC DECISION COULD CUT COLUMBIA GAS <CG> NET. Columbia Gas System Inc said a Federal Energy Regulatory Commission decision today on natural gas cost recovery could reduce its 1987 earnings by about 1.25 dlrs a share. The company said "this could bring earnings for 1987 below Columbia's stated goal of earning no less than its 3.18 dlrs per share dividend." It earned 2.12 dlrs a share in 1986. It said management expects to recommend to the board that the dividend rate be maintained in 1987. Columbia Gas said the impact of the FERC decision may be offset by a one-time accounting change rleated to future tax liabilities under the new federal tax laws. The company recorded these liabilities based on older, higher tax rates, but an action being considered by the Financial Accounting Standards Board could result in a gain of about 1.20 dlrs a share in 1987, it explained. "Thus there is a good chance that we will attain our 1987 earnings goal -- although not in the way originally planned," Columbia Gas said. Columbia Gas said the FERC decision would limit the recovery of certain gas contract costs by Columbia Gas Transmission Corp, the company's principal pipeline subsidiary. It said the decision specifically excluded from a purchased gas adjustment filing by the pipeline costs related to amortizing payments made to producers to reform gas purchase contracts. These were excluded on the grounds the subsidiary failed to sufficiently support cost recovery. The company said its subsidiary is not precluded from making a new filing to provide sufficient support.  
PUERTO RICAN CEMENT CO <PRN> SETS PAYOUT. Qtly div five cts vs five cts prior Pay May 13 Record April 14 NOTE: Company said up to 20 pct of dividend payment may be withheld in accordance with Puerto Rico tax law.  
WESCO FINANCIAL CORP <WSC> 4TH QTR NET. Shr 79 cts vs 5.05 dlrs Net 5,628,000 vs 35,936,000 Revs 41.8 mln vs 39.4 mln Year Shr 2.32 dlrs vs 7.24 dlrs Net 16,524,000 vs 51,541,000 Revs 160.2 mln vs 114.9 mln Note:  Current qtr figures include securities gain of 2.1 mln dlrs, or 29 cts per share, vs gain of 34.3 mln dlrs, or 4.81 dlrs per share. Current year figures include security gain of 4.6 mln dlrs, or 64 cts per share, vs gain of 41.5 mln dlrs, or 5.83 dlrs per share.  
AMPAL-AMERICAN ISRAEL CORP <AIS.A> YEAR NET. Shr 27 cts vs 25 cts Net 6,416,000 vs 5,988,000 Revs 112.2 mln vs 99.8 mln NOTE: 1985 includes extraordinary income of 647,000 dlrs or three cts/shr. 1985 restated.  
SNC GROUP EXPECTS HIGHER 1987 EARNINGS, SALES. <SNC Group Inc> expects 1987 earnings to rise to 1.20-1.40 dlrs a share from 91 cts a share last year, with revenues climbing to about 430 mln dlrs from last year's 350 mln dlrs, president Alex Taylor said before the annual meeting. SNC, Canada's second biggest engineering and construction group, became the country's largest ammunition manufacturer last year with its 90 mln dlr acquisition of Canadian Arsenals Ltd from the Canadian government. The impact of that and several smaller deals will be felt fully in 1987, Taylor said. Defense preoducts and other manufacturing operations will account for more than half SNC's total 1987 revenues, helping to counterbalance the more cyclical engineering and construction acivities, Taylor said. Last year, SNC earned 8.7 mln dlrs, including a small extraordinary gain. In 1987, a total manufacturing activities will generate about 235 mln dlrs in revenues, and engineering and construction about 200 mln dlrs, he said, adding that defense products operations should be a major contributor to earnings.  
MEDAR INC <MDXR> 4TH QTR DEC 31 LOSS. Shr loss 10 cts vs loss nine cts Net loss 558,800 vs loss 469,200 Sales 5.5 mln vs two mln Nine mths ended Dec 31 Shr profit two cts vs loss four cts Net profit 91,045 vs loss 207,000 Sales 17.3 mln vs 8.4 mln Avg shrs 5,465,433 vs 5,037,819 Year ended March 31 Shr loss 28 cts vs profit 19 cts Net loss 1,356,321 vs profit 818,723 Sales 10.9 mln vs 12.2 mln Avg shrs 4,862,499 vs 4,683,591 Note: Medar changed end of fiscal year to December 31 to be more in phase with business cycle of its major customers.  
MEDAR <MDXR> CHANGES FISCAL YEAR. Medar Inc said it changed the end of its fiscal year to December 31 from March 31. The company, in reporting its annual results, said the change was made to bring its financial reporting in phase with the order cycle of its major customers. Medar earlier said it lost 558,800 dlrs in its final 1986 quarter, compared to a loss of 469,200 dlrs in the same 1985 quarter.  
CHEMFIX TECHNOLOGIES INC <CFIX> 2ND QTR NET. Ended Feb 28 Shr profit one ct vs loss four cts Net profit 53,040 vs loss 255,568 Revs 2,252,246 vs 755,605 Six mths Shr profit three cts vs loss eight cts Net profit 217,884 vs loss 517,538 Revs 4,895,720 vs 1,569,662  
FLORIDA EMPLOYERS INSURANCE CO <FLAE> YEAR 1986. Shr 29 cts vs nine cts Net 651,000 vs 214,000 NOTE: 1986 net includes loss of 500,000 dlrs for extraordinary item.  
NIKE INC <NIKE> 3RD QTR FEB 28 NET. Shr 12 cts vs 30 cts Net 4,255,000 vs 11.5 mln Revs 199.4 mln vs 258.7 mln Nine mths Shr 64 cts vs 1.19 dlrs Net 24.4 mln vs 45.5 mln Revs 639.7 mln vs 824.3 mln  
ZENITH NATIONAL INSURANCE <ZNAT> QTLY DIVIDEND. Shr 20 cts vs 20 cts prior qtr Pay May 14 Record April 30 Note: Full name Zenith National Insurance Corp.  
REDKIN LABORATORIES INC <RDKN> QTLY DIVIDEND. Shr five cts vs five cts prior qtr Pay April 17 Record April 3.  
COOPERVISION INC <EYE> QTLY DIVIDEND. Shr 10 cts vs 10 cts prior qtr Pay April 17 Record April 9.  
PULITZER PUBLISHING CO <PLTZC> DECLARES QTLY DIV. Qtly div 10 cts vs 10 cts prior Pay May 1 Record April 10  
FEDERAL CO <FFF> SETS REGULAR PAYOUT. Qtly 29-1/2 cts vs 29-1/2 cts prior Payable June 1 Record May 1.  
SOUTHWESTERN BELL <SBC> SEES EARNINGS DILUTION. Southwestern Bell Corp said that its planned acquisitions of cellular telephone and paging systems, including those of <Metromedia Inc>, will result in some initial earnings dilution and an increase in debt ratio. In a letter to shareholders in its 1986 annual report, the regional Bell company did not indicate the degree of earnings dilution it expects from the acquisitions, which total some 1.38 billion dlrs. However, the company said the rise in its debt ratio will be temporary and will leave its debt level within an acceptable range. In its 1986 yearend financial statement, Southwestern Bell listed a debt-to-equity ratio of 43.4 pct, down slightly from 43.7 pct in 1985. In 1986, the company earned 1.02 billion dlrs, or 10.26 dlrs a share, compared with 996.2 mln dlrs, or 10 dlrs a share in 1985. Revenues dipped to 7.90 billion dlrs from 7.93 billion dlrs. Southwestern Bell said it expects the new tax law to have a negative impact on its cash flow, due mainly to the loss of investment tax credits. By mid-year, however, the company said a reduced corporate tax rate should have a positive impact on its net income and cash flow. In addition, the company said it is projecting a 1.7 pct gain in customer telephone lines and a three to four pct increase in long distance calling volumes. Southwestern Bell said 1987 capital expenditures will be lower that the 1.97 billion dlrs spent in 1986, a year in which expenditures were held below budget.  
VARITY CORP YEAR SHR LOSS 21 CTS VS LOSS 16 CTS.  VARITY CORP YEAR SHR LOSS 21 CTS VS LOSS 16 CTS  
NORDSON <NDSN> SETS 3-FOR-2 SPLIT. Nordson Corp said its board declared a 3-for-2 stock split to be paid as a 50 pct stock dividend on April 30 to shareholders of record April 10. As a result, the number of shares outstanding will increase to 10.2 mln from 6.8 mln, the maker of industrial equipment said.  
VARITY CORP <VAT> 4TH QTR JAN 31 LOSS. Shr loss 13 cts vs loss one ct Net loss 18,600,000 vs profit 3,300,000 Revs 394.0 mln vs 351.0 mln YEAR Shr loss 21 cts vs loss 16 cts Net loss 23,300,000 vs profit 3,900,000 Revs 1.36 billion vs 1.29 billion Note: Current yr loss includes reorganization charge of 15.2 mln dlrs vs yr-ago reorganization charge of 17.6 mln dlrs. Shr after preferred divs. U.S. dlrs.  
INDIANA FEDERAL <IFSL> 4TH QTR NET. Net 492,000 vs 677,000 Year Net 2,650,000 vs 2,566,000 NOTE: Company's full name is Indiana Federal Savings and Loan Association. Per share information not available. Bank went public on February 11, 1987.  
CRYSTAL OIL CO <COR> 4TH QTR LOSS. Oper shr loss 16 cts vs loss 44 cts Oper net loss 8,926,000 vs loss 14.4 mln Revs 9,920,000 vs 21.2 mln Year Oper shr loss 4.30 dlrs vs loss 2.24 dlrs Oper net loss 221.8 mln vs loss 53.7 mln Revs 51.4 mln vs 94.4 mln Note: Oper net excludes losses from discontinued operations of 228,000 dlrs vs 4,253,000 dlrs for qtr and 10.4 mln dlrs vs 14.2 mln dlrs for year.  
CHEMFIX TECHNOLOGIES <CFIX> 2ND QTR FEB 28 NET. Shr profit one ct vs loss four cts Net profit 53,040 vs loss 255,568 Rev 2,252,246 vs 755,605 Six months Shr profit three cts vs loss eight cts Net profit 217,884 vs loss 517,538 Rev 4.9 mln vs 1.6 mln NOTE: Company's full name is Chemfix Technologies Inc.  
FEDERAL-MOGUL CORP <FMO> SETS REGULAR DIVIDEND. Qtly div 40 cts vs 40 cts prior Pay June 10 Record May 27  
IOWA RESOURCES INC <IOR> DECLARES QTLY DIVIDEND. Qtly div 41 cts vs 41 cts prior Pay May 1 Record April 8  
FIDUCIARY TRUST CO IN FIVE-FOR-ONE STOCK SPLIT. <Fiduciary Trust Co International> said its shareholders at the annual meeting approved a five-for-one stock split effective May 15, 1987, to holders of record on April 15, 1987. The company said the split would increase the number of authorized common shares from 440,000 to 2,200,000 shares issued. In addition, the company said it authorized another 800,000 shares, but would not issue them at this time. The company also changed the stock's par value from 10 dlrs a share to 2.50 dlrs a share. It explained it transferred 1,100,000 dlrs from its undivided profits account to its capital account in order to raise the new par value from two dlrs, under the five-for-one split, to 2.50 dlrs.  
LA QUINTA MOTOR INNS INC<LQM>3RD QTR FEB 28 NET. Shr profit 25 cts vs loss nine cts Net profit 3,433,000 vs loss 1,310,000 Revs 37.1 mln vs 39.0 mln Nine mths Shr profit 28 cts vs profit 27 cts Net profit 3,883,000 vs profit 3,908,000 Revs 133.2 mln vs 132.0 mln Avg shrs 13.8 mln vs 14.2 mln Note: Current net includes gain on sale of 31 inns of 7,719,000 dlrs for qtr and 7,975,000 dlrs for nine mths.  
VARITY<VAT> SEES IMPROVED RESULTS AFTER 1ST QTR. Varity Corp, earlier reporting a full year loss against a prior year profit, said improvement is expected in the balance of fiscal 1987 as new products fill the inventory pipeline, cutbacks in operating costs are realized and its newly acquired Dayton Walther business is fully integrated. However, operating results are likely to remain under pressure in the first quarter ending April 30, it said. Varity earlier reported a loss for fiscal 1986 ended January 31 of 23.3 mln U.S. dlrs, compared to a year-earlier profit of 3.9 mln dlrs. Varity said continued deterioration in major markets, a weakening U.S. dollar and unforeseen delays in launching major new lines of tractors contributed to the full year loss. Industry demand for farm machinery continued to erode during the latest fiscal year, with worldwide industry retail sales of tractors sliding more than 10 pct below last year's depressed levels, the company said. However, Varity increased its share of the global tractor market by more than one pct to 18.2 pct, it said. The combined impact of costly sales incentives and foreign exchange adjustments on margins was substantial, Varity said.  
PLAINS RESOURCES INC <PLNS> YEAR LOSS. Oper shr loss 31 cts vs profit three cts Oper net loss 887,886 vs profit 646,250 Revs 9,724,418 vs 10.8 mln Note: Year-ago oper net excludes tax credit of 230,000 dlrs.  
GV MEDICAL INC <GVMI> 4TH QTR LOSS. Shr loss 20 cts vs loss 26 cts Net loss 798,289 vs loss 777,667 Rev 262,738 vs nil Avg shares 3,930,360 vs 2,959,029 Year Shr loss 96 cts vs loss 1.25 dlrs Net loss 3,202,355 vs loss 3,060,407 Rev 676,341 vs nil Avg shares 3,339,174 vs 2,445,423  
FRIEDMAN INDUSTRIES INC <FRD> QUARTERLY DIV. Qtly div seven cts vs seven cts prior Pay June one Record May four  
PENOBSCOT SHOE CO <PSO> 1ST QTR FEB 27 NET. Shr 69 cts vs six cts Net 421,306 vs 44,132 Revs 3,721,178 vs 3,125,935 Note: Current qtr net includes a gain of 281,000 dlrs, mostly from the sale of securities and property.  
CONSOLIDATE CAPITAL TRUST <CIOTS> 4TH QTR NET. Shr 32 cts vs nil Net 1.2 mln vs 100,000 Avg shrs 3,692,000 vs 3,148,000 Year Shr 1.02 dlrs vs 54 cts Net 3.7 mln vs 800,000 Avg shrs 3,607,000 vs 1,461,000 Note: Net is after depreciation. Full name is Consolidated Captial Income Opportunity Trust/2.  
LINDE TURNOVER UP IN FIRST TWO MONTHS OF 1987. Engineering group Linde AG's <LING.F> world group turnover rose to 518.6 mln marks in the first two months of 1987, 5.2 pct more than in the same 1986 period, management board chairman Hans Meinhardt said. But world group incoming orders fell 2.2 pct to 587.3 mln marks, Meinhardt told the annual news conference. Excluding exchange rate movements, world group turnover rose 8.9 pct and incoming orders increased 1.0 pct. Linde expects satisfactory results and increased sales this year but Meinhardt gave no detailed forecast. Domestic group 1986 net profit rose to 105.79 mln marks from 80.71 mln. Meinhardt said domestic group turnover rose 6.7 pct to 394.1 mln marks in the first two 1987 months against the same period last year but incoming orders fell 5.2 pct to 456.6 mln. Linde will ask shareholders at the annual meeting on May 13 to raise authorised share capital by a maximum 30 mln marks nominal for the issue of share warrant bonds with a maximum issue volume of 200 mln marks. Linde's authorised share capital currently stands at a nominal 49.6 mln marks. Meinhardt said the authorisation would give the company the necessary flexibility in case Linde needed additional funds for acquisitions. He declined to give further details. While world group turnover rose 7.2 pct to 3.88 billion marks in 1986, incoming orders were barely changed at 3.91 billion marks. Meinhardt said without the sharp appreciation of the mark against major trading partner currencies, incoming orders would have been four pct above the prior year's level. World group turnover in heavy plant construction rose 7.4 pct to 777 mln marks, but incoming orders dropped 5.7 pct to 739 mln marks in the wake of the dollar and oil price plunge. World sales for technical gases rose 5.1 pct to 1.05 billion marks and incoming orders gained 5.2 pct to 1.05 billion marks. Meinhardt said Linde strengthened its market position in the refrigeration sector, with particularly strong turnover and order gains in Austria, Italy and Norway. World group sales in the sector fell 2.5 pct to 493 mln marks, but incoming orders rose 2.5 pct to 513 mln marks. The fork lift truck and hydraulic sector saw world group sales rising 12.4 pct to 1.52 billion marks and incoming orders gaining 8.0 pct to 1.57 billion marks. Domestic group turnover rose 8.2 pct to 2.93 billion marks and incoming orders increased 1.9 pct to 2.92 billion marks. The company was producing at full capacity in 1986.  
LINDE AG <LING.F> 1986 YEAR. Domestic group net profit 105.79 mln marks vs 80.71 mln Turnover 2.93 billion marks vs 2.71 billion Incoming orders 2.92 billion marks vs 2.86 billion Order book at end December 2.28 billion vs 2.37 billion Tax payments 104.98 mln marks vs 88.67 mln Depreciation of fixed assets 107.25 mln marks vs 150.75 mln New investment in fixed assets 148.88 mln vs 148.22 mln Dividend already announced 12 marks vs 11 DVFA earnings per share 32.22 marks vs 27.54 marks Shareholders annual meeting May 13, dividend date May 14 World group turnover 3.88 billion marks vs 3.62 billion Incoming orders 3.91 billion marks vs 3.91 billion New investment in fixed assets 247 mln marks vs 252 mln No world group profit figures given Parent company net profits 95.04 mln marks vs 74.91 mln Turnover 2.28 billion marks vs 2.14 billion  
Hoechst AG 1986 world group pretax profit 3.21 billion marks vs 3.16 billion.  Hoechst AG 1986 world group pretax profit 3.21 billion marks vs 3.16 billion  
HOECHST AG <HFAG.F> YEAR 1986. Year ended December 31. World group pretax profit 3.21 billion marks vs 3.16 billion. Turnover 38.01 billion marks vs 42.72 billion. World group turnover comprised domestic sales 10.83 billion vs 10.80 billion, foreign sales 27.18 billion vs 31.92 billion. Parent pretax profit 1.82 billion marks vs 1.62 billion. Turnover 14.09 billion vs 15.35 billion. Parent turnover comprised domestic sales 6.47 billion vs 6.84 billion, foreign sales 7.62 billion vs 8.51 billion. Parent investment in fixed assets 960 mln marks vs 831 mln. Depreciation of fixed assets 935 mln marks vs 847 mln. Investment in new participations 2.53 billion marks vs 294 mln.  
HOECHST RAISES PROFITS ON LOWER SALES. Hoechst AG <HFAG.F> said in a statement it increased its pretax profits in 1986 despite a fall in turnover due to lower foreign sales. The lower sales were due to the fall in the dollar and other currencies against the mark. Other factors were pressure on selling prices because of a sharp fall in the prices of crude oil and petrochemical raw materials and the sale of polystyrene business in the U.S. And Netherlands. World group pretax profit rose to 3.21 billion marks in 1986 from 3.16 billion in 1985, with sales falling to 38.01 billion from 42.72 billion. Within group turnover, foreign sales fell to 27.18 billion marks in 1986 from 31.92 billion in 1985, a drop of 14.9 pct. The statement made no mention of net profit figures. Hoechst will announce its dividend proposal on April 23. In the first quarter of this year sales were hit by the cold weather at the start of the year. If the dollar continues at present low levels, 1987 sales will again be below the previous year, although in volume terms they are unchanged from 1986, Hoechst said. Sales of paints and dyes, fibres, sheeting and information technology all rose in 1986 but plant construction sales fell. Hoechst attributed its good results to the performance of the parent company, other units in West Germany, and to <American Hoechst Corp>. Improved earnings in the U.S. Largely reflected the restructuring of styrene and polystyrene activities. Roussel Uclaf <RUCF.PA> and most domestic non-consolidated partners did not perform as well as in 1985. Hoechst attributed the 12 pct rise in parent company pretax profits to 1.82 billion marks above all to a rise in earnings from interest and holdings in other companies, and a fall in extraordinary costs. The fall in raw material prices was not enough to compensate for the decline in turnover due to lower prices and currencies, Hoechst said. The bulk of the 2.53 billion marks investment in new projects, up from 294 mln marks in 1985, went on the capital increase of Hoechst Capital Corp in connection with the acquisition of <Celanese Corp>. Celanese was merged with American Hoechst in February to form <Hoechst Celanese Corp>.  
BHP NET SEEN AROUND 600 MLN DLRS FOR NINE MONTHS. Australia's largest company, The Broken Hill Pty Co Ltd <BRKN.S> (BHP), is expected to report a net profit of around 600 mln to 620 mln dlrs tomorrow for the first nine months ended February 28, share analysts polled by Reuters said. This would be well below the 813.0 mln dlrs earned in the first three quarters of 1985/86. In the full year ended May 31 1986 the group earned a record 988.2 mln dlrs. The analysts estimated that the group would report a third quarter net in the region of 200 mln to 220 mln dlrs, against 238.6 mln a year earlier and 220.3 mln in the second quarter. BHP's earnings in the first half ended November 30 amounted to 397.0 mln dlrs, sharply down from 589.3 mln a year earlier. The analysts predicted that BHP will report an upturn in petroleum earnings compared with the first quarter, reflecting some improvement in crude oil prices from the Bass Strait fields, but these gains would be offset by lower mineral and steel earnings. They said the mineral group has been hit by lower coal prices and shipments to Japan while the steel division has been affected by industrial and production problems. The analysts noted that the third quarter is normally BHP's lowest-earning period owing to a number of seasonal factors, and they predicted a sharp rise in fourth quarter net to around 300 mln dlrs. One key factor in the fourth quarter is expected to be a tax break of some 70 mln dlrs for the investment allowance on capital expenditure in the steel division, they said. They said they saw BHP's full year earnings at around 900 mln to 920 mln dlrs. They added that such a decline from 1985/86 would be no surprise, noting BHP has said that it would be difficult to equal its record 1985/86 net profit.  
LUCAS INDUSTRIES PLC <LUCS.L> HALFYEAR ENDED JAN 31. Shr 22.9p vs 26.9p. Interim div 2.6p vs same. Pre-tax profit 40.0 mln stg vs 38.0 mln. Net profit before minorities 29.6 mln vs 30.9 mln. Turnover 825.0 mln vs 791.6 mln. Trading profit 52.8 mln stg vs 52.5 mln. Related companies profit 3.1 mln vs 1.4 mln. Interest payable 12.3 mln vs 14.6 mln. Reorganisation and redundancy costs 3.6 mln vs 1.3 mln. Tax 10.4 mln vs 7.1 mln. Minorities 1.5 mln vs 2.4 mln. Extraordinary charges 1.3 mln vs 34.2 mln.  
CLUB MEDITERRANEE <CMI.PA> - YEAR ENDED OCTOBER 31. Parent company 1986 net profit 202.55 mln francs vs 171.31 mln Dividend 13.02 francs vs same, including 4.34 francs tax credit. (Note -  company earlier reported consolidated net profit 315.9 mln francs vs 302.08 mln and consolidated attributable profit of 293.3 mln vs 266.6 mln.)  
SIEMENS SEES SALES NEAR 52 BILLION MARKS THIS YEAR. World group turnover of Siemens AG <SIEG.F> should rise to 51 or 52 billion marks in the current year to September 31 after a 19 pct upturn in the first five months, management board chairman Karlheinz Kaske said. Siemens reported world group turnover in 1985/86 of 47.02 billion marks. Kaske told the annual shareholders meeting turnover rose to 21.2 billion marks in the first five months of 1986/87, about 19 pct above the same year-ago period. The rise was mainly due to payment in January for a West German nuclear power station which led to a jump in domestic sales of 36 pct. In the first five 1986/87 months, turnover abroad showed a three pct increase, Kaske said, without giving figures. In the same period incoming orders rose five pct to 21.8 billion marks against the same 1985/86 period. For the year as a whole incoming orders should rise between one and two billion marks to around 51 or 52 billion. Apart from payments for the nuclear power station, the communications and telecommunications sectors in particular should contribute to growth this year, Kaske said. But it was not possible to make a profit forecast for 1986/87 because of uncertainty about the direction of the dollar, Kaske said. Siemens already reported that first quarter 1986/87 group net profit fell marginally to 296 mln marks from 298 mln in the same period in the previous year. Turnover in the first five months rose particularly strongly in the installations and automotive technology, communications and telecommunications sectors, but components and energy and automation showed a sharp decline. Kaske said domestic orders rose to 10.2 billion marks in the first five months of this year, or nine pct above their level in the same 1985/86 period, boosted in particular by orders for the fully owned Kraftwerk Union AG subsidiary. Foreign orders grew one pct to 11.6 billion marks. An increase in orders through newly acquired subsidiaries abroad was balanced by the decline in the dollar. While the installations and automotive technology sector showed a sharp rise in orders, energy and automation and communications orders were below the level achieved in the same period of 1985/86. Telecommunications orders remained at roughly the same level. Kaske said investments were expected to remain around six billion marks in 1986/87 after a 50 pct increase the previous year. Research and development were likely to rise 13 pct to 6.1 billion marks or around 12 pct of turnover.  
KRUPP HAS SATISFACTORY 1986 RESULTS. The Fried. Krupp GmbH <KRPG.D> steel and engineering group said it had a satisfactory 1986 despite a provisional 12 pct fall in total group sales to 18.1 billion marks from 20.7 billion the previous year. Third party turnover declined to 15.9 billion from 18.5 billion in 1985 while orders slipped to 15.5 billion marks from 16.9 billion, it said in a preliminary statement. Despite these figures, which reflected the dollar's weakness against the mark and oil and raw materials price falls, it said 1986 was a satisfactory year. The reason was the continued expansion of the machinery and plant sector, which accounted for 42 pct of total sales. Krupp added that some areas of the mechanical engineering business achieved notable growth rates and acquisitions had underpinned machinery and component activities. An orders decline in the steel and, in particular, the trading and services sectors, affected the group's total order figures. However, "all business sectors contributed to the positive results achieved in 1986," Krupp added, without giving details. Domestic orders decreased by five pct to 9.6 billion marks from the previous year and foreign orders fell 14 pct to 5.9 billion, it said. Foreign business accounted for 38 pct of orders against 40 pct in 1985. Orders received by the machinery and plant sector, 11 member companies which comprise the core area of the group, rose by four mln marks last year to 6.9 billion, Krupp said. The group's orders in hand amounted to 9.1 billion marks at end-December 1986 from 10.3 billion at the start of the year. Orders received by the steel sector last year decreased by three pct to 6.2 billion marks from 1985, it said. The steel market weakened increasingly over the year, mainly because of exchange rate movements, the deterioration in foreign trade and a downturn in a number of customer industries. The difficult market for sections and flats of quality steel depressed order tonnages by around seven pct, Krupp said. But special steel boosted by strong demand for stainless cold-rolled flats, grew by five pct in tonnage terms.  
LUCAS SEES CONTINUED GROWTH IN SECOND HALF. Lucas Industries Plc <LUCS.L> said its underlying performance would continue to improve in the second half but profits would be restrained by low activity in U.K. Commercial vehicle and tractor markets as well as in North American electronics. The company earlier reported a two mln stg rise in pretax profit to 40 mln in the six months to end-January. The figure was some five mln below forecasts and Lucas shares dropped sharply to 557.5p at 1130 GMT from last night's close of 590p. It said it would continue with plans for all its activities to be internationally competitive and profitable. Costs of restructuring, reorganisation, employee training and retraining, particularly in the UK automotive businesses, together with high research and development spending would affect profits in the short term. But Lucas said it was exploiting growth opportunities in automotive markets, especially in vehicle breaking and engine management systems. Recent acquisitions in North America had strengthened Lucas Aerospace and Lucas Industrial systems.  
FIRST INTERSTATE <I> ESTIMATES LOSS ON BRAZIL. First Interstate Bancorp Chairman Joseph Pinola said the bank holding company would lose about 16 mln dlrs per year, after taxes, if it had to put its medium and long-term debt on non-accrual status. In an interview, he said that could result in about a 4.5 pct decline in annual earnings per share. Pinola said First Interstate, like other banks, has not yet decided to put the loans, which Brazil stopped paying interest on last month, on non-accrual status. "None of us really wants to injure negotiations that might be going on," he said. First Interstate reported to the Securities and Exchange Commission last week that it has about 339 mln dlrs in medium-to long-term loans to Brazil. It said on December 31, 1986 its nonperformind Brazilian outstanding debt totaled about 4.1 mln dlrs. First Interstate also has about 168 mln dlrs in short-term loans or trade lines to Brazil. Pinola said he believes the solution to the Brazilian debt crisis will be more political than economic, which he said he finds, "very disquieting and discomforting."  
MICKELBERRY CORP <MBC> 4TH QTR NET. Shr profit 61 cts vs loss 45 cts Net profit 3,568,000 vs loss 2,598,000 Revs 34.6 mln vs 31.6 mln Avg shrs 5,861,000 vs 5,776,000 Year Shr profit 56 cts vs loss 32 cts Net profit 3,374,000 vs loss 1,759,000 Revs 132.0 mln vs 131.6 mln NOTE: 1985 quarter net includes 665,000 dlr tax credit.  
FLUOROCARBON CO <FCBN> 4TH QTR JAN 31 NET. Shr 26 cts vs 24 cts Net 1,144,000 vs 1,063,000 Sales 23.2 mln vs 24.8 mln Year Shr 93 cts vs 1.40 dlrs Net 4,046,000 vs 6,111,000 Sales 97.8 mln vs 104.0 mln NOTE: Prior year net includes gain 286,000 dlrs from discontinued operations in year and loss 375,000 in quarter and gain 260,000 dlrs in year from disposal of discontinued.  
AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS.  AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS  
AMERICAN MEDICAL INTERNATIONAL INC <AMI> NET. 2nd qtr Shr profit 32 cts vs loss 95 cts Net profit 28.0 mln vs loss 82.2 mln Revs 950.2 mln vs 862.0 mln 1st half Shr profit 65 cts vs loss 62 cts Net profit 56.6 mln vs loss 53.5 mln Revs 1.88 billion vs 1.67 billion Avg shrs 92.2 mln vs 86.7 mln NOTE: Period ended February 28. Prior year net both periods includes pretax asset writedowns of 114.6 mln dlrs and additions to reserves of 60.0 mln dlrs. Prior year net includes tax credits of 53.7 mln dlrs in quarter and 32.9 mln dlrs in half.  
<TRIZEC CORP LTD> 1ST QTR JAN 31 NET. Shr 12 cts vs 10 cts Net 19.6 mln vs 17.6 mln Revs 276 mln vs 170.4 mln Avg shrs 85.3 mln vs 84.8 mln NOTE: Company owns 65 pct of <Bramalea Ltd>.  
BOSTON EDISON CO <BSE> REGULAR DIVIDEND. Qtly div 44.5 cts vs 44.5 cts in prior qtr Payable May one Record April 10  
BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS.  BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS  
BEST PRODUCTS CO <BES> 4TH QTR JAN 31 NET. Shr profit 1.44 dlrs vs profit 83 cts Net profit 39.0 mln vs profit 22.5 mln Sales 816.1 mln vs 865.3 mln Year Shr loss 95 cts vs profit eight cts Net loss 25.6 mln vs profit 2,223,000 Sales 2,142,118 vs 2,234,768 NOTE: Current year net both periods includes prtax provisions for restructuring operations of 4,868,000 dlrs in quarter and 38.1 mln dlrs in year. Latest year net includes 1,825,000 dlr tax credit and 2,600,000 dlr posttax loss from debt extinguishment.  
PRICE CO <PCLB> 2ND QTR MARCH 15 NET. Shr 34 cts vs 29 cts Net 16.7 mln vs 13.3 mln Sales 678.7 mln vs 531.0 mln Avg shrs 48.9 mln vs 45.8 mln 1st half Shr 81 cts vs 69 cts Net 39.5 mln vs 31.7 mln Sales 1.71 billion vs 1.35 billion Avg shrs 48.9 mln vs 45.8 mln NOTE: Twelve and 28-week periods.  
CAROLIAN SYSTEMS SEES LOWER FISCAL 1987 PROFIT. <Carolian Systems International Inc> said it anticipates profit for fiscal 1987 ending June 30 will be lower than fiscal 1986 earnings of 410,000 dlrs, despite an expected revenue increase of 37 pct to more than 3.5 mln dlrs. After an extraordinary expense associated with the December, 1986 withdrawal of a planned common share offering, "we expect to be modestly profitable for the year, but below the 410,000 dlrs earned in fiscal 1986," the company said. Carolian previously reported fiscal six month profit of 12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs, compared to earnings of 69,829 dlrs in the prior year. The company said it anticipated fiscal 1987 earnings to be lower due to withdrawal of its share offering, computer equipment shipment delays and costs associated with sales staff expansion. A strengthening Canadian dollar against U.S. currency will also adversely affect revenues and earnings, since 85 pct of revenues are generated by sales outside Canada, said Carolian, a leading supplier of utility software for Hewlett-Packard computer systems.  
PONCE FEDERAL BANK FSB <PFBS> RAISES DIVIDEND. Qtly div nine cts vs 7.5 cts in prior qtr Payable April 15 Record March 31  
FOOTHILL GROUP <FGI> SEES BETTER FIRST QUARTER. Don Gevirtz, chairman of The Foothill Group Inc, told Reuters the company's first quarter results will be up sharply over last year's eight cents a share. "First quarter results will be dramatically better," he said following a presentation to analysts. He cited a sharp drop in non-earning assets, healthy asset growth and lower expenses. He declined to predict specific results for the first quarter. In the 1986 first quarter, the commerical finance company earned 606,000 dlrs, or eight cts per share. Gevirtz also declined to predict full year results, but said, "We expect an excellent year." In 1986 Foothill earned 3,239,000 dlrs, or 41 cts per share. Analysts expect Foothill to record earnings of 65 cts to 85 cts a share in 1987. During the presentation Gevirtz said Foothill has reduced to less than five pct the company's level of non-performing assets, which was as high as eight pct in previous years. David Hilton, chief financial officer, said the company's general and administrative expenses in 1987 will be reduced to about 3.0 to 3.5 pct of average assets from 4.3 pct in 1986. The company had average assets of 399.8 mln dlrs from continuing operations and 29.8 mln dlrs from discontinued operations in 1986, according to its annual report.  
ANCHOR GLASS <AGLS> NOW SEES HIGHER 1ST QTR NET. Anchor Glass Container Corp said first quarter net income is now expected to exceed the 3.1 mln dlrs earned before extraordinary items in the year earlier quarter. Previously, the company had said first quarter results would likely be lower than for the 1986 period due to production disruptions caused by the large number of production line changes scheduled during the first quarter, its statement pointed out. While the disruptive effects of the production line changes had occurred in line with expectations, Anchor Glass said, first quarter operating results were helped by lower than anticipated operating costs and improved margins on sales as a result of a more favorable product mix. The company said its income performance for the full year remains very good. It also said Anchor Hocking Corp <ARH> has converted the entire principal balance of its Anchor Glass convertible subordinated note to 576,694 Anchor Glass common shares. Anchor Glass said the conversion decreased its total debt and increased stockholders' equity by about 9.4 mln dlrs and increased common shares outstanding to 13,902,716. It said the conversion will also reduce its annualized net interest expense by about 1.1 mln dlrs, or 600,000 dlrs after taxes.  
MACNEAL-SCHWENDLER CORP <MNS> RAISES PAYOUT. Qtly div five cts vs 2-1/2 cts prior Pay June 10 Record May 29 NOTE: Prior payment adjusted for two-for-one stock split declared recently.  
VIACOM INTERNATIONAL INC <VIA> SETS QUARTERLY. Qtly div seven cts vs seven cts prior Pay May Eight Record April 17  
PHLCORP <PHX> HAS BREAKEVEN RESULTS. PHLCORP Inc said for November 14 through December 31, its first reporting period after emerging from reorganization proceedings, it earned 86,000 dlrs on revenues of 47 mln dlrs, excluding 2,300,000 dlrs in gains on the sale of real estate and 800,000 dlrs in tax credits. The company is the successor to Baldwin-United Corp.  
SALANT CORP <SLT> 1ST QTR FEB 28 NET. Oper shr profit seven cts vs loss 12 cts Oper net profit 216,000 vs loss 401,000 Sales 21.4 mln vs 24.9 mln NOTE: Current year net excludes 142,000 dlr tax credit. Company operating in Chapter 11 bankruptcy.  
HEALTHMATE INC <HMTE> 4TH QTR LOSS. Shr loss five cts vs loss six cts Net loss 473,784 vs loss 489,257 Revs 268.8 mln vs 81.7 mln Avg shrs 9,245,247 vs 8,035,326 Year Shr loss 17 cts vs loss 20 cts Net 1,512,534 vs loss 1,553,592 Revs 1,448,310 vs 515,225 Avg shrs 8,745,132 vs 7,619,863  
NATIONAL BANC OF COMMERCE CO <NBCC> SETS PAYOUT. Qtly div 14 cts vs 14 cts prior Pay April Eight Record March 26  
HARSCO CORP <HSC> SETS REGULAR PAYOUT. Qtrly div 25 cts vs 25 cts Pay May 15 Record April 15  
COMPUTER ASSOCIATES <CA> SETS TWO FOR ONE SPLIT. Computer Associates International Inc said its board has declared a two-for-one stock split, payable May Seven, record April Seven.  
Z-SEVEN FUND SEES HIGHER 1987 NET. <Z-Seven Fund Inc> said it expects to earn six dlrs a share in 1987, up from 4.20 dlrs a share in 1986. The company said the 1986 net earnings were up 30 pct from 3.22 dlrs in 1985. Net asset value in 1986 rose 35 pct to 16.09 dlrs a share from 11.89 a year earlier, adjusted for a three-for-two stock split.  
ROY F. WESTON INC <WSTNA> 4TH QTR NET. Shr 15 cts vs 11 cts Net 900,334 vs 482,705 Revs 28.7 mln vs 18.8 mln Avg shrs 6,195,527 vs 4,551,105 Shr 51 cts vs 31 cts Net 2,713,912 vs 1,402,696 Revs 98.7 mln vs 67.9 mln Avg shrs 5,369,833 vs 4,551,105 NOTE: Share adjusted for three-for-two stock split effecitive March 2, 1987. Weston said earnings for the firstg quarter will be about flat due to the recent substantial addition of management and technical staff and an expansion in the Southeastern and Northwestern U.S. The company said full-year earnings and revenues are expected to be higher.  The company today reported 1986 earnings of 2,713,912 dlrs, up from 1,402,696 dlrs in 1985, and revenues of 98.7 mln dlrs, up from 67.9 mln dlrs. Weston earned 492,000 dlrs in last year's first quarter.  
FRUEHAUF POSTS 20.3 MLN DLR 1986 LOSS. Fruehauf Corp, which went private in December through a leveraged buyout, said the predecessor company had a 1986 loss of 60.9 mln dlrs compared to earnings of 70.5 mln dlrs in 1985. Sales of the predecessor company were 2.68 billion dlrs compared to 2.56 billion dlrs in 1985, including the sales by the operations which are divestiture candidates. Fruehauf said in connection with the buyout acquisition, the predecessor company incurred about 97 mln dlrs in expenses charged against 1986 operations. In addition to the direct expenses, Fruehauf said operating results were adversely affected by an unquantifiable amount due to the disruption related to a proxy contest and attempted hostile takeover which started in early 1986. Fruehauf said its board rescheduled the annual meeting to June 18 from May 7 to allow for completion and distribution of the 1986 results to shareholders.  
COMSTOCK GROUP INC <CSTK> 4TH QTR LOSS. Shr loss 60 cts vs loss 43 cts Net loss 3,012,000 vs loss 2,114,000 Revs 102.8 mln vs 134.9 mln Year Shr loss 1.48 dlr vs loss four cts Net loss 7,338,000 vs loss 180,000 Revs 354.9 mln vs 469.2 mln NOTE: 1986 4th qtr and year net includes a loss of 623,000 dlrs and a gain 1,910,000 dlrs or 39 cts per share for an extraordinary item.  
HEALTHMATE INC SAYS AUDITORS INTEND TO QUALIFY ITS FINANCIAL STATEMENTS.  HEALTHMATE INC SAYS AUDITORS INTEND TO QUALIFY ITS FINANCIAL STATEMENTS  
HARSCO CORP <HSC> SETS QUARTERLY. Qtly div 25 cts vs 25 cts prior Pay May 15 Record April 15  
MILASTAR CORP <MILA> 3RD QTR JAN 31 LOSS. Shr loss two cts vs loss four cts Net loss 44,000 vs loss 85,000 Sales 370,000 vs 299,000 Nine mths Shr loss seven cts vs loss three cts Net loss 134,000 vs loss 56,000 Sales 1,211,000 vs 1,069,000 NOTE: Prior nine mths net includes 10,000 dlr loss on sale of marketable securities. Prior quarter net includes 1,000 dlr tax credit. Current year net includes provisions for loss on investment in preferred stock of 4,000 dlrs in quarter and 15,000 dlrs in nine mths.  
BANK OF BOSTON EXPECTS 1ST QTR EARNINGS FROM 90 CTS TO 1.00 DLRS/SHR VS 79 CTS.  BANK OF BOSTON EXPECTS 1ST QTR EARNINGS FROM 90 CTS TO 1.00 DLRS/SHR VS 79 CTS  
BANK OF BOSTON <BKB> SEES IMPROVED 1ST QUARTER. Bank of Boston Corp expects first quarter earnings will range between 90 cts and one dlr a share, up from 79 cts a share last year, Chairman William Brown said. He told shareholders the company has a 190 mln dlr exposure in loans to Brazil if that country defaults on its debt payments. If a default does occur, it would first quarter earnings by about five cts a share, which would bring the bank's in the lower level of the estimated range, he added. Brown noted the 1986 first quarter net included a 17 cts gain from loan restructurings which will not appear this year. Brown said the bank's other nonperforming assets, not including its Brazilian exposure, could rise to over 700 mln dlrs at the end of this quarter compared with 669 mln dlrs a year earlier and 614 mln dlrs at the end of 1986. He said the increase includes all of its Equadorian loans which he expects will be ultimately repaid after the company recovers from an earthquake earlier this year. Brown said the increase also includes some Mexican and Venezuelan loans as those nations are also facing credit problems. Brown said the Bank of Boston remains "cautiously optimitic about the full year even if our Brazilian exposure were to be on nonaccural all year." In 1986, the bank earned 3.69 dlrs a share, or 232.8 mln dlrs on net interest revenues of 1.08 billion dlrs. President Ira Stepanian told the shareholders's meeting the bank's total loans to Argentina, Brazil and Mexico totaled 875 mln dlrs at the end of 1986, 37 pct of its primary capital. Brazil loans total 300 mln dlrs, of which about two-thirds are affected by its suspension of interest payments on its medium and long term foreign debt.  
NORCEN SEES IMPROVEMENT IN 1987 EARNINGS. <Norcen Energy Resources Ltd>, 41 pct owned by <Hees International Corp>, said earnings and cash flow will improve in 1987, even if oil and gas prices remain at 1986 levels. The improvement will result from production increases, lower taxes and royalties, reduced financing costs and from operating efficiencies and downsizing put into place during 1986, the company said in the annual report. Norcen previously reported 1986 earnings, excluding a 20.1 mln dlr writeoff, declined by 58 pct to 50.0 mln dlrs from 119.7 mln dlrs in in 1985. Norcen's 1986 cash flow fell 10 pct to 204.9 mln dlrs from 228.9 mln dlrs in the prior year. It said the sharp decline in oil prices during 1986 was the most significant factor for Norcen's reduced performance. "While financial results are far from the previous year's record levels, it is clear that Norcen has withstood declining prices and remains financially and operationally strong," Norcen said. It did not give a specific 1987 profit forecast. The company said it is well positioned to capitalize on profitable opportunities in its core business areas, and will continue to invest to increase revenue and asset values.  
FORD <F> NEARS GM <GM> IN EXECUTIVE BONUSES. Ford Motor Co neared General Motors Corp last year in executive bonuses, while it topped the larger automaker in profit sharing payments to workers. Ford, which outstripped GM in earnings last year, said its 1986 incentive bonuses totaled 167 mln dlrs, slightly behind General Motors' 169.1 mln. General Motors, however, did not make any profit-sharing payments to its workers, while Ford made a profit-sharing distribution of 372 mln dlrs, or 2,100 dlrs per worker. General Motors, which saw its earnings drop to 2.94 billion dlrs from 1985's 3.99 billion, said the 1986 profit was "not sufficient to generate a payout under the profit-sharing formula." Ford, which earned 3.28 billion dlrs in 1986, up from 2.51 billion in 1985, said it "recognizes employees' efforts and fulfills its commitment to them in many ways, including profit-sharing."  
PIER 1 IMPORTS <PIR> DECLARES STOCK SPLIT. Pier 1 Imports Inc said its board declared a three-for-two split of its common stock and its 25 cents preferred stock, and declared a regular quarterly dividend of two cents per share on the pre-split shares of common stock outstanding. Pier 1 also declared a 12.5 pct annual dividend increase for the post-split common shares. The split will be effected in the form of a 50 pct stock dividend on both classes. The company said shareholder approval is required for an increase in authorized shares of common stock to 100 mln from 25 mln. It said approval is also needed for an increase in authorized shares of preferred stock from one million to five million. It said voting will be conducted at its annual shareholder meeting on June 24. Pier 1 said there are currently 19.1 million shares of common stock and 960,000 shares of 25 cts preferred stock outstanding. The split shares will be distributed on June 29 to shareholders of record May 13. The two cts per share quarterly cash dividend will be payable May 29 to shareholders of record May 13. "The increase in shares outstanding will broaden the base of stock ownership in the company, and the dividend increase reflects the directors' positive outlook for the future prospects of Pier 1 Imports," said Clark Johnson, president and chief executive officer.  
LANCER CORP <LACR> 4TH QTR NET. Shr 12 cts vs 15 cts Net 282,000 vs 360,000 Revs 5,261,000 vs 5,348,000 Avg shrs 2,336,000 vs 2,335,000 Year Shr 91 cts vs 1.04 dlrs Net 2,149,000 vs 2,075,000 Revs 28.2 mln vs 28.3 mln Avg shrs 2,356,000 vs 2,001,000 NOTE: 1986 quarter net includes 72,000 dlr charge from repal of investment tax credit.  
MACNEAL-SCHWENDLER CORP <MNS> 4TH QTR JAN 31 NET. Shr 16 cts vs 11 cts Net 1,888,000 vs 1,307,000 Revs 7,365,000 vs 5,877,000 Year Oper shr 58 cts vs 40 cts Oper net 7,005,000 vs 4,866,000 Revs 27.1 mln vs 21.1 mln NOTE: Prior year net excludes 263,000 dlr loss from discontinued operations and 2,073,000 dlrs on disposal. Share adjusted for stock dividends.  
NICHOLS INSTITUTE <LAB> 1ST QTR FEB 28 NET. Shr two cts vs one ct Net 83,000 vs 32,000 Revs 11.2 mln vs 7,625,000  
FIRST MEDICAL DEVICES CORP <FMDC> YEAR LOSS. Shr loss 97 cts Net loss 1,364,453 Sales 737,971 NOTE: Company in development stage.  
HEALTHMATE <HMTE> EXPECTS QUALIFIED OPINION. HealthMate Inc said its auditors, Laventhol and Horwath, indicated they will issue a qualified opinion on the company's financial statements. The company, which went public in March 1985, earlier reported losses for the fourth quarter. It said the auditor's statement, known as a "subject to" opinion, cautions that, because of continuing operating losses and negative cash flow, it must achieve profitable operations or acquire additional equity capital or other financing to continue in existence. HealthMate reported a loss for the year of 1,512,534 dlrs, or 17 cts a share on revenues of 1.4 mln dlrs. A year ago, it had a loss of 1,553,592 dlrs, or 20 cts a share on revenues of 515,225 dlrs. It said the increased sales reflect initial shipments of its FluoroScan Imaging Systems, low radiation X-ray imaging devices that recently were classified by Underwriters Laboratories Inc.  
HEALTHMATE INC <HMTE> 4TH QTR LOSS. Shr loss five cts vs loss six cts Net loss 473,784 vs loss 489,257 Revs 268,797 vs 81,725 Avg shrs 9,245,247 vs 8,035,326 Year Shr loss 17 cts vs loss 20 cts Net 1,512,534 vs loss 1,553,592 Revs 1,448,310 vs 515,225 Avg shrs 8,745,132 vs 7,619,863  
HOUSE OF FABRICS INC <HF> 4TH QTR JAN 31 NET. Shr 34 cts vs 20 cts Net 2,253,000 vs 1,332,000 Sales 89.7 mln vs 85.9 mln Year Shr 94 cts vs 64 cts Net 6,191,000 vs 4,257,000 Sales 316.4 mln vs 286.7 mln NOTE: Prior year net both periods includes 2,100,000 dlr charge from sale of Craft Showcase stores.  
HOUSE OF FABRICS <HF> SEES RESULTS IMPROVING. House of Fabrics Inc said it expects growth in earnings and revenues as the current fiscal year progresses. It said it will open about 50 super stores this year. House of Fabrics now operates 703 stores. The company today reported earnings for the year ended January 31 of 6,191,000 dlrs on sales of 316.4 mln dlrs, up from prior year earnings of 4,257,000 dlrs on sales of 286.7 mln dlrs.  The prior year earnings included a 2,100,000 dlr charge for the disposition of Craft Showcase stores.  
AVERY <AVY> 1ST QTR FEB 28 NET. Shr 33 cts vs 30 cts Net 13.0 mln vs 11.9 mln Sales 330.8 mln vs 249.7 mln  
KNIGHT-RIDDER INC <KRN> SETS QUARTERLY. Qtly div 25 cts vs 25 cts prior Pay April 13 Record April Six  
TECHNITROL INC <TNL> SETS QUARTERLY. Qtly div 12 cts vs 12 cts prior Pay April 21 Record April Seven  
NATIONWIDE CELLULAR SERVICE INC <NCEL> 4TH QTR. Shr loss six cts vs loss 18 cts Net loss 89,478 vs loss 178,507 Revs 3,894,844 vs 1,964,141 Avg shrs 1,582,790 vs one mln Year Shr loss 43 cts vs loss 81 cts Net loss 534,099 vs loss 811,836 Revs 12.2 mln vs 5,167,573 Avg shrs 1,251,337 vs one mln  
<A.H.A. AUTOMOTIVE TECHNOLOGIES CORP> YEAR NET. Shr 43 cts vs 52 cts Shr diluted 41 cts vs 49 cts Net 1,916,000 vs 2,281,000 Revs 32.6 mln vs 22.6 mln  
ROGERS <ROG> SEES 1ST QTR NET UP SIGNIFICANTLY. Rogers Corp said first quarter earnings will be up significantly from earnings of 114,000 dlrs or four cts share for the same quarter last year. The company said it expects revenues for the first quarter to be "somewhat higher" than revenues of 32.9 mln dlrs posted for the year-ago quarter. Rogers said it reached an agreement for the sale of its molded switch circuit product line to a major supplier. The sale, terms of which were not disclosed, will be completed early in the second quarter, Rogers said.  
ISLAND TELEPHONE SHARE SPLIT APPROVED. <Island Telephone Co Ltd> said the previously announced two-for-one common share split was approved by shareholders at the annual meeting.  
QUESTECH INC <QTEC> YEAR NET. Shr loss nil vs profit 19 cts Net loss 3,175 vs profit 284,945 Revs 13.6 mln vs 10.6 mln Year Shr profit 13 cts vs profit 56 cts Net profit 195,202 vs profit 857,006 Revs 47.5 mln vs 42.9 mln Note: Current year net includes charge against discontinued operations of 1,060,848 dlrs.  
SHOE TOWN INC <SHU> YEAR ENDED JAN THREE 1987. Shr 51 cts vs 75 cts Net 5,524,000 vs 8,094,000 Revs 142.4 mln vs 137.2 mln NOTE: 1986 and 1985 year net includes loss 785,000 dlrs or eight cts a share and 59,000 dlrs or one ct a share, respectively, for discontinued operations. 1985 year ended December 28, 1985.  
AMERICAN NURSERY PRODUCTS <ANSY> 3RD QTR NET. Period ended Feb 28 Shr profit five cts vs profit four cts Net profit 191,000 vs profit 108,000 Sales 6,561,000 vs 5,896,000 Nine mths Shr loss 28 cts vs loss 40 cts Net loss 871,000 vs loss 990,000 Sales 9,310,000 vs 8,894,000 Avg shrs 3,086,386 vs 2,465,996 NOTE: Full name is American Nursery Products Inc  
DISCUS CORP <DISC> 4TH QTR LOSS. Shr loss six cts vs loss seven cts Net loss 125,000 vs loss 140,000 Rev 2.4 mln vs 2.2 mln Year Shr loss 13 cts vs loss 14 cts Net loss 271,000 vs loss 211,000 Rev 10.1 mln vs 8.2 mln  
ENTERTAINMENT PUBLICATIONS SEES 31 CTS/SHR 3RD QTR LOSS ON UNITS DISPOSAL.  ENTERTAINMENT PUBLICATIONS SEES 31 CTS/SHR 3RD QTR LOSS ON UNITS DISPOSAL  
PAY 'N PAK STORES INC <PNP> 4TH QTR FEB 28 NET. Shr 11 cts vs 13 cts Net 1,129,000 vs 1,301,000 Revs 83.2 mln vs 74.5 mln Year Shr 57 cts vs 82 cts Net 5,686,000 vs 8,168,000 Revs 398.4 mln vs 333.8 mln  
AMERICAN NURSERY PRODUCTS <ANSY> 3RD QTR NET. Qtr ends Feb 28 Shr profit five cts vs profit four cts Net profit 191,000 vs profit 108,000 Revs 6,561,000 vs 5,896,000 Avg shrs 3.6 mln vs 2.5 mln Nine mths Shr loss 28 cts vs loss 40 cts Net loss 871,000 vs loss 990,000 Revs 9,310,000 vs 8,894,000 Avg shrs 3.1 mln vs 2.5 mln NOTE: Full name American Nursery Products Inc.  
VOLVO 1986 RESULT OFF SLIGHTLY FROM 1985. AB Volvo <VOLV.ST> said the weakening dollar caused the drop in its 1986 profits, but company chief executive Pehr Gyllenhammar said 1986 was one of Volvo's best years ever. In its final report released earlier, the company said the group's 1986 profits before allocations and taxes was 7.53 billion crowns  compared with 1985's 7.60 billion. Despite the fall, Gyllenhammar said, "Sales of industrial products have never been higher, and Volvo Cars and Volvo Trucks were both completely sold out at year-end. Operating income was slightly higher than a year earlier." He said the company's financial strength gave it exceptional opportunities to invest for the future. Although industrial sales were up, the company's yearend report said total sales were 84.09 billion crowns against 1985's 86.19 billion.  
GOLDFIELD CORP <GV> 4TH QTR NET LOSS. Shr loss four cts vs loss five cts Net loss 527,065 vs loss 1,204,080 Revs 622,470 vs 613,205 Year Shr profit four cts vs loss 13 cts Net profit 1,099,778 vs loss 3,282,478 Revs 7,579,547 vs 6,068,254 NOTE: 1985 excludes loss from discontinued operations of four cts per share in the quarter and loss 10 cts in the year. 1986 year excludes extraordinary gain of two cts a share.  
FEDERATED DEPARTMENT STORES INC UPS QTLY DIV BY 10.5 PCT, SETS 2-FOR-1 STOCK SPLIT.  FEDERATED DEPARTMENT STORES INC UPS QTLY DIV BY 10.5 PCT, SETS 2-FOR-1 STOCK SPLIT  
ADVANCED GENETIC SCIENCES <AGSI> YEAR LOSS. Shr loss 30 cts vs loss 73 cts Net loss 3,895,267 vs loss 8,250,222 Revs 3,237,235 vs 234,745 Note: 4th qtr data not available  
FEDERATED DEPARTMENT <FDS> RAISES QTLY DIVIDEND. Federated Department Stores Inc said it raised its quarterly common stock dividend to 74 cts a share, from 67 cts, an increase of 10.5 pct. The company said it also approved a two-for-one stock split in the form of a 100 pct stock dividend. At the same time, Federated said it will ask shareholders to approve an increase in the number of authorized shares to 400 mln, from 200 mln. Federated said the dividend is payable on a pre-split basis on April 24 to shareholders of record April 10. New shares from the stock split will be distributed May 11, it said.  
DANZAR INVESTMENT <DNZR> SETS SPECIAL DIVIDEND. Danzar Investment Group Inc said it received 60 mln shares of <Commonwealth Capital Ltd> in settlement of a debt and that it will distribute the shares to its stockholders as a dividend. Danzar said the dividend will also include 18,750,000 Commonwealth shares it already holds. The dividend of 39.9 shares per Danzar share held will be paid to shareholders of record April 15, the company said.  
HOME SAVINGS BANK <HMSB> SETS INITIAL DIVIDEND. Qtly div nine cts Pay April 30 Record April six  
AMERICAN BRANDS SEES RECORD FIRST QUARTER RESULTS.  AMERICAN BRANDS SEES RECORD FIRST QUARTER RESULTS  
ENTERTAINMENT PUBLICATIONS <EPUB> SEES LOSS. Entertainment Publications Inc said it expects an after-tax loss of 31 cts a share in its third quarter from the disposal of three units it closed. The company said its board approved a plan to discontinue the operations of three subsidiaries, which are primarily involved in direct mail marketing. "The discontinued units were not likely to meet the growth and profit goals of the company in the future," Entertainment Publications said. The three units lost 900,000 dlrs, or 19 cts a share in the six months ended December 31.  
CHRIS-CRAFT INDUSTRIES INC <CCN> REGULAR PAYOUT. Chris-Craft Industies Inc said it declared a regular two pct stock dividend on both its common stock and class B common stock, which is equal the two pct stock dividends the company paid for the prior quarter. The dividends are payable on April 20 to shareholders of record April six.  
OLD REPUBLIC INT'L CORP <OLDR> HIKES DIVIDEND. Qtly div 20 cts vs 19-1/2 cts prior Pay June 20 Record June 5  
CARSON PIRIE SCOTT AND CO <CRN> SETS DIVIDEND. Qtly div 17-1/2 cts vs 17-1/2 cts prior Pay June 5 Record May 22  
FALCON CABLE SYSTEMS <FAL> 4TH QTR LOSS. Shr loss 3.49 dlrs vs loss 15 cts Net loss 10.8 mln vs loss 459,000 Revs 4,384,000 vs 2,542,000 Year Shr loss 4.41 dlrs vs loss seven cts Net loss 13.7 mln vs loss 218,000 Revs 13.9 mln vs 8,864,000 Note: net losses included extraordinary losses of 4,904,000 in 4th qtr vs 232,000 year ago and extraordinary losses for year of 2,056,000 vs 460,000 a year ago.  
HOME SAVINGS BANK <HMSB> SETS INITIAL QUARTERLY. Home Savings Bank said its board declared an initial quarterly dividend of nine cts per share, payable April 30, record April Six.  
UNIVERSAL HOLDING CORP <UHCO> 4TH QTR LOSS. Shr profit nil vs profit nine cts Net profit 2,000 vs profit 195,000 Revs 2,623,000 vs 2,577,000 Year Shr loss 21 cts vs profit 13 cts Net loss 425,000 vs profit 278,000 Revs 15.4 mln vs 8,637,000 Note: Net includes capital gains of 63,000 vs 211,000 for qtr and 304,000 vs 292,000 for year. Current year net includes charge of 716,000 from contract obligation to former chairman.  
FREEDOM FEDERAL <FRFE> TO RECOGNIZE GAIN. Freedom Federal Savings Bank said it will recognize in its first-quarter earnings a previously deferred 1.5 mln dlr gain which resulted from the sale of an apartment complex in 1983. It said the recognition comes as a result of repayment of a loan which was granted when the complex was sold.  
COMMERCE CLEARING HOUSE INC <CCLR> HIKES DIV. Qtly div 32 cts vs 30 cts prior Pay April 29 Record April 10  
QUANTECH ELECTRONICS CORP <QANT> 3RD QTR DEC 31. Shr loss 28 cts vs loss six cts Net loss 561,029 vs loss 114,712 Revs 3,464,269 vs 4,083,833 Nine mths Shr loss 56 cts vs loss 13 cts Net loss 1,104,472 vs loss 261,791 Revs 10.5 mln vs 11.6 mln NOTE: Prior year net includes losses from discontinued operations of 99,209 dlrs in quarter and 202,097 dlrs in nine mths.  
QUANTECH <QANT> NEEDS ADDITIONAL FUNDS. Quantech Electronics Corp said it is investigating available means of raising additional funds needed to finance continuing operations, but there is no assurance that it will succeed. The company said it continues to experience negative cash flow.  Today it reported a loss for the third quarter ended December 31 of 561,029 dlrs, compared with a 114,712 dlr loss a year before. Quantech said it has received waivers from Marine Midland Banks Inc <MM> through May 26 on covenants in its loan agreement. The company said Marine Midland has agreed to advance it an additional working capital loan that will be personally guaranteed by chairman Henry Ginsburg.  Loans from Marine Midland are secured by substantially all company assets. Quantech also said Bernard Weinblatt has rsigned as president and a director, and until a replacement is found, Ginsberg will act as chief executive and Leonard N. Hecht, formerly chief executive, will act as chief operating officer.  
PDA ENGINEERING <PDAS> HALTS SOFTWARE SHIPMENTS. PDA Engineering said it has temporarily deferred shipmetns of its PATRAN software for IBM computers, due to a technical problem with the program. The company said the deferral will reduce its thrid quarter revenues and earnings. PDA said it anticipates resuming shipments in the fourth quarter.  
P AND F INDUSTRIES INC <PFINA> 4TH QTR NET. Oper shr 16 cts vs 29 cts Oper net 453,924 vs 726,816 Revs 12.0 mln vs 11.2 mln Avg shrs 2,695,206 vs 2,562,160 Year Oper shr 50 cts vs 50 cts Oper net 1,365,655 vs 1,268,847 Revs 40.1 mln vs 33.1 mln Avg shrs 2,695,206 vs 2,562,160 NOTE: Net excludes tax credits of 571,000 dlrs vs 496,000 dlrs in quarter and 1,347,000 dlrs vs 1,107,000 dlrs in year. Share adjusted for one-for-five reverse split in October 1986.  
ALLIED RESEARCH ASSOCIATES INC <ARAI> YEAR NET. Shr 63 cts vs 64 cts Net 2,463,214 vs 2,509,832 Sales 34.4 mln vs 30.6 mln NOTE: Backlog as of February 28 47.4 mln dlrs vs 34.9 mln dlrs a year before.  
AMERICAN BRANDS <AMB> SEES HIGHER 1ST QTR NET. American Brands Inc said it expects first quarter net earnings to exceed the record 118.7 mln dlrs or 1.05 dlrs a share it earned for the year-ago quarter. The company also said it believes sales in the first quarter will surpass record sales of 2.1 billion dlrs last year. The company said unit sales of American Tobacco's Lucky Strike Filter line rose 20 pct last year, which led to a gain for he Lucky franchise. American Brands said it will introduce a new low-priced brand of cigarettes called Malibu. The company's U.K.-based Gallaher Ltd unit had a strong performance in 1986 and became the second-largest contributor to operating earnings, American Brands said.  
MARTIN LAWRENCE LIMITED EDITIONS <MLLE> YEAR NET. Shr 20 cts vs six cts Net 861,000 vs 266,000 Revs 10.2 mln vs 6,036,000 Note: 4th qtr data not given.  
COMMONWEALTH ENERGY SYSTEM <CES> DIVIDEND. Qtly div 68 cts vs 68 cts in prior qtr Payable May one Record April 14  
TRANSWORLD TRUST <TWT> SETS INITIAL PAY DATE. Transworld Liquidating Trust said it will distribute proceeds from the sale of Hilton International Co to UAL Inc <UAL> to its holders on April 8. The deal is expected to close March 31, the day trading ceases in the Liquidating Trust shares. UAL will pay 632.5 mln dlrs cash, 2,564,000 shares of UAL common stock and 200 mln dlrs worth of UAL debentures to Transworld, but it may substitute cash for the securities. The initial distribution will include all the cash, stock and debentures received in connection with the sale, the company said. The shares in the Trust formerly represented shares of Transworld Corp common stock. The company said the balance of cash in the Trust will be used to satisfy all liabilities and obligations of the Trust. After satisfaction of the payments, the company will make a second distribution around April 29, it said.  
ELECTRO-SENSORS INC <ELSE> VOTES EXTRA PAYOUT. Electro-Sensors Inc said its board voted an extraordinary cash dividend on its common stock of 10 cts a share payable May 15, record April 30. The company paid an extraordinary dividend of 10 cts in May 1986.  
U.S. HOME <UH> SEES BEST FIRST QTR SINCE 1983. U.S. Home Corp said its first quarter ending March 31, 1987, will be its most profitable first quarter since 1983. The company said in 1983, it recorded a profit of 8,600,000 dlrs for its first quarter. The three following first quarters resulted in losses of 3,200,000 dlrs, 3,500,000 dlrs and 1,800,000 dlrs, respectively, the company said. U.S. Home declined to put a specific figure on what its net earnings would be for the coming first quarter, but said it would definitely record a profit. In other news, U.S. Home said its shareholders approved an amendment to its company's certificate of incorporation relating to the liability of the company's directors.  
ROCKEFELLER CENTER PROPERTIES <RCP> UPS PAYOUT. Rockefeller Center Properties Inc said it raised its quarterly dividend to 45 cts from 44 cts a share. The dividend is payable April 27 to shareholders of record April 7.  
SANDUSTRY PLASTICS INC <SPI> 4TH QTR NET. Shr seven cts vs 26 cts Net 200,000 vs 450,000 Revs 7,291,000 vs 1,177,000 12 mths Shr 37 cts vs 77 cts Net 801,000 vs 1,329,000 Revs 26 mln vs 28.6 mln NOTE: 1985 year includes extraordinary gain of 10 cts per share.  
PEPCO <POM> TWO MTHS FEB 28 NET. Shr 49 cts vs 57 cts Net 25.1 mln vs 28.9 mln Revs 202.8 mln vs 220.9 mln 12 mths Shr 4.05 dlrs vs 3.66 dlrs Net 223.9 mln vs 186.4 mln Revs 1.35 billion vs 1.34 billion NOTE: Full name Potomac Electric Power Co 1987 year includes extraordinary gain of 21.7 mln, or 46 cts per share, for the June 1986 sale of the company's Virginia service territory to Virginia Power.  
DECISION INDUSTRIES <DIC> SEES 1ST QTR LOSS. Decision Industries Corp said it expects to report an operating loss of 19-24 cts a share for the first quarter ending March 31 mainly due to lower profit margins and higher sales and marketing costs. In the 1st quarter of last year, when the company's quarter ended Feb 28, 1986, it earned 957,000 dlrs or 10 cts a share on revenues of 45 mln dlrs. Decision also said it entered into an agreement to sell its International Computerized Telemarketing Inc subsidiary to an investor group headed by the unit's senior management. Terms were not disclosed. Decision also said it consolidated its Decision Development Corp subsidiary into Decision Data Computer Corp, the unit which designs, manufactures and sells its System/3X peripheral products. It said this restructuring will adversely affect its first quarter earnings, but it said it expects to realize a "significant savings" in operating expenses through the remainder of the year.  
CAMPBELL SOUP CO <CPB> SETS QUARTERLY DIVIDEND. Qtly div 36 cts vs 36 cts Pay April 30 Record April 7  
EQUITABLE RESOURCES INC <EQT> IN REGULAR PAYOUT. Qtly div 30 cts vs 30 cts prior Pay June one Record May eight NOTE: Current dividend is equivalent to previous quarterly dividend of 45 cts per share, after giving effect to 3-for-2 stock split effective March 3, 1987.  
ELECTROSOUND GROUP INC <ESG>3RD QTR FEB 28 LOSS. Oper shr loss one cts vs loss five cts Oper net loss 15,000 vs loss 79,000 Revs 6,244,000 vs 8,148,000 Avg shrs 1,912,000 vs 1,537,000 Nine mths Oper shr profit 19 cts vs profit 22 cts Oper net profit 347,000 vs profit 341,000 Revs 22.6 mln vs 28.5 mln Avg shrs 1,840,000 vs 1,537,000  Note: Oper excludes tax losses of 13,000 vs 85,000 for qtr and tax credits of 258,000 vs 235,000 for nine mths.  
COURIER <CRRC> SEES SECOND QUARTER LOSS. Courier Corp said it expects to report a small loss for the second fiscal quarter against a profit of 828,000 dlrs a year ago. The company attributed the loss to competitive pressures which have cut gross margins. In addition, it said it is incurring significant expenses from management programs aimed at reducing costs and boosting productivity. It said its Murray Printing Co unit has undertaken a program of extended work hours, and salary and job cuts which will save more than 1.5 mln dlrs annually.  
CONTINUING CARE ASSOCIATES <CONC> 4TH QTR NET. Shr four cts vs two cts Net 59,700 vs 27,300 Revs 3,123,900 vs 1,911,900 12 mths Shr six cts vs nine cts Net 94,100 vs 81,600 Revs 9,802,000 vs 5,922,000 NOTE: qtr 1986 and qtr prior includes tax gain 9,000 and 1,900, respectively; and year 1986 and year prior includes tax gain 18,000 and 21,000, respectively.  
VALLEY FEDERAL <VFED> SPLITS STOCK TWO-FOR-ONE. Valley Federal Savings and Loan Association said its board declared a two-for-one stock split for its common stock. The split will be effected in the form of a 100 pct stock dividend, to be issued April 30 to stockholders of record March 31.  
ATCOR <ATCO> CUTS DIVIDEND. Atcor Inc said it cut its quarterly dividend to three cts per share from 12 cts because of depressed earnings. The dividend is payable April 15 to holders of record April 6. It said it will continue to review the dividend on a quarterly basis.  
TERRANO CORP <TRNO> YEAR DEC 31 OPER NET. Oper shr profit 12 cts vs loss 1.15 dlrs Oper net profit 300,286 vs loss 2,855,887 Revs 2,456,616 mln vs 2,979,206 Avg shrs 2,527,720 vs 2,482,197 NOTE: 1986 earnings exclude extraordinary gain from forgiveness of debt through reorganization under Chapter 11 of 280,505 dlrs, or 11 cts a share  
ATCOR INC <ATCO> CUT DIVIDEND. Qtly div three cts vs 12 cts prior Pay April 15 Record April 6  
HOWARD B. WOLF INC <HBW> 3RD QTR FEB 28 NET. Shr two cts vs three cts Net 21,080 vs 35,393 Revs 2,026,017 vs 2,476,068 Nine mths Shr five cts vs six cts Net 48,567 vs 59,527 Revs 6,231,242 vs 6,519,473  
BURR-BROWN <BBRC> SEES LOWER 1ST QTR EARNINGS. Burr-Brown Corp said its first quarter 1987 results will show profits significantly below the 1,058,000 dlrs, or 11 cts per share, earned in the first quarter last year. The company said the profit decline will be the result of an increase in reserves for inventory valuation. The increase will be to cover potential write-downs of certain inventories or products used in compact-disc stereo systems. Burr-Brown said the possible write-down is being precipitated by a shift in market demand toward higher performance products.  
MEDIA GENERAL INC UPS QTLY DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT.  MEDIA GENERAL INC UPS QTLY DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT  
CORRECTED - MEDIA GENERAL INC UPS ANNUAL DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT (CORRECTS TO SHOW RAISE IN ANNUAL DIV, NOT QTLY).  CORRECTED - MEDIA GENERAL INC UPS ANNUAL DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT (CORRECTS TO SHOW RAISE IN ANNUAL DIV, NOT QTLY)  
CENTRAL CAPITAL PLANS THREE-FOR-TWO STOCK SPLIT. <Central Capital Corp> said it planned a three-for-two split of its common and class A subordinate voting shares, subject to shareholder approval at the April 23 annual meeting. It said the split would raise the amount of common shares to about 25.2 mln from 16.8 mln and subordinate voting shares to about 23.9 mln from 15.9 mln.  
NORTHERN INDIANA <NI> 12 MTHS FEB 28 LOSS. Shr loss 66 cts vs profit 1.07 dlrs Net loss 20,957,000 vs profit 11,041,000 Revs 1.54 billion vs 1.85 billion Avg shrs 73.2 mln vs 71.7 mln NOTE: 1986 net excludes charge of 94.8 mln dlrs or 1.32 dlrs a share from abandonment of Bailly nuclear plant. Northern Indiana Public Service Co is full name of company.  
CAMPBELL RED LAKE MINES LTD 4TH QTR SHR 21 CTS VS 10 CTS.  CAMPBELL RED LAKE MINES LTD 4TH QTR SHR 21 CTS VS 10 CTS  
MEDIA GENERAL <MEG.A> UPS DIVIDEND, SETS SPLIT. Media General Inc said it raised the annual dividend on its class A and class B common stock to 68 cts a share from 64 cts. The company said it also declared a two-for-one stock split of both stock issues, which is subject to shareholder approval of an increase in the number of authorized class A shares. Media General said the increased dividend is payable June 12 to shareholders of record May 29. The proposed stock split will be paid May 29 in shares of class A shares, the company said. The company said it also approved an amendment to its articles of incorporation allowing class B shares to be coverted into class A shares at the option of the holder. Media General said the moves should broaden investor interest in its class A stock.  
CAMPBELL RED LAKE MINES LTD <CRK> 4TH QTR NET. Shr 21 cts vs 10 cts Net 10,798,000 vs 4,704,000 Revs 47.4 mln vs 32.9 mln YEAR Shr 58 cts vs 54 cts Net 29.1 mln vs 25.8 mln Revs 187.7 mln vs 134.7 mln Note: 1986 net includes 2.8 mln dlr extraordinary gain in 4th qtr and 6.5 mln dlr fl-yr extraordinary loss involving provision for decline in market value of marketable securities partly offset by gain from sale of stake in Dome Petroleum Ltd <DMP>.  
(CORRECTED)-<AMERICAN VARIETY INTERNATIONAL INC>. Shr loss seven cts vs profit 11 cts Net loss 76,888 vs profit 106,885 Revs 752,234 vs 922,036 (corrects year ago per share to profit, instead of loss in item that ran on March 23)  
GREAT AMERICAN CORP SEES 1ST QTR CHARGE OF 14.1 MLN DLRS AGAINST LOAN LOSS ALLOWANCE.  GREAT AMERICAN CORP SEES 1ST QTR CHARGE OF 14.1 MLN DLRS AGAINST LOAN LOSS ALLOWANCE  
GREAT AMERICAN <GTAM> SEES CHARGE, WRITEDOWN. Great American Corp said preliminary findings by regulatory examiners of its AMBANK subsidiary will result in a first quarter charge of 14.1 mln dlrs and a writedown of 1.4 mln dlrs. The charge will be made against the allowance for possible loan losses, and the writedown is of other real estate. Great American said the examiners were conducting a regular examination and a final report is not expected for several weeks. Management intends to include the charge and writedown in response to the preliminary findings. Great American said regulatory authorities are not requiring an adjustment of the previously reported financial results for Great American for 1986. However, Great American has revised its previous estimates of provisions for possible losses and has added 9.9 mln dlrs to the allowance account as of December 31, 1986. It said it took the action since the charge-offs will significantly deplete its allowance for possible loan losses and the economic environment does not show signs for significant improvement in the near future. It said the additional provision increases the allowance to 26.4 mln dlrs, representing 6.63 pct of the outstanding loan portfolio and 83.2 pct of non-performing loans at year-end. Great American said its revised net loss for the fourth quarter is 14.1 mln dlrs, or 6.36 dlrs per share, compared to a net loss of 2.4 mln dlrs or 1.06 dlrs per share the year earlier.  
<MARATHON NATIONAL BANK> YEAR NET. Shr 78 cts vs 51 cts Net 725,000 vs 451,000 Assets 98.5 mln vs 85.9 mln Loans 40.5 mln vs 28.8 mln Deposits 90.4 mln vs 78.7 mln  
MACMILLAN BLOEDEL <MMBLF> STOCK SPLIT APPROVED. MacMillan Bloedel Ltd said shareholders approved the company's previously reported proposed three-for-one stock split.  
URS CORP <URS> REGULAR STOCK DIVIDEND. Qtly div five pct stock vs five pct stock Pay April 16 Record April six  
DUCOMMUN INC <DCO> QUARTERLY DIVIDEND. Qtly div five cts vs five cts Pay April 30 Record April 15  
TEKTRONIX INC <TEK> QUARTERLY DIVIDEND. Qtly div 15 cts vs 15 cts Pay May 4 Record April 10 Note: previous dividend restated to reflect January 26 two-for-one stock split.  
<MCM CORP> TO DELAY YEAREND REPORT. McM Corp said it has been forced to delay the release of its fourth quarter and yearend results until it can determine the effects on its balance sheet of a possible increase in liabilities at a unit. Earlier this month, the company's Occidental Fire and Casualty Co unit paid 26 mln dlrs to a unit of <Mutual of Omaha> under a commutation agreement. However, McM said it now believes it is possible that the unit's liabilities may exceed 26 mln dlrs. It said a finding on any possible increase should be completed by April 15.  
BLASIUS INDUSTRIES INC <BLAS> 3RD QTR LOSS. Qtr ended Feb 28 Oper shr loss one ct vs profit 12 cts Oper net profit 3,000 vs profit 218,000 Revs 12.0 mln vs 10.6 mln Avg shrs 2,421,000 vs 1,602,000 Nine mths Oper shr profit 28 cts vs profit 24 cts Oper net profit 639,000 vs profit 500,000 Revs 34.6 mln vs 31.2 mln Avg shrs 1,928,000 vs 1,620,000 Note: Oper excludes tax credits of 180,000 and 415,000 for year-ago qtr and nine mths. Oper includes writeoff related to subordinated note exchange of 185,000 for current qtr and nine mths.  
GAINSCO INC <GAIN> 4TH QTR NET. Shr nil vs four cts Net 12,000 vs 140,000 Revs 4,446,000 vs 3,998,000 Avg shrs 4,364,000 vs 3,461,000 Year Shr 60 cts vs 22 cts Net 2,257,000 vs 774,000 Revs 18.3 mln vs 21.1 mln Avg shrs 3,788,000 vs 3,461,000  Note: Net includes realized gains on investments of 50,000 vs 105,000 for qtr and 174,000 vs 202,000 for year. Net also includes tax credit of 64,000 for year-ago 12 mths.  
BP AUSTRALIA REPORTS 16.15 MLN DLR YEAR LOSS. The <British Petroleum Co of Australia Ltd> reported a 16.15 mln dlr net loss for 1986 against a 73.38 mln dlr profit in 1985 after sales fell to 2.27 billion dlrs from 2.94 billion. The British Petroleum Co Plc <BP.L> unit attributed the deficit to stock losses arising from the drop in crude prices in the first half, when it made a 119.93 mln dlr loss. It said government compensation, in the form of subsidies to refiners to partially cover stock losses, together with improved crude prices in the second half, enabled the group's oil business to make a modest pre-tax profit. BP Australia said it had not recommended a dividend. Commenting on the year's performance, the company said it suspended operations at the 60 pct-owned Agnew Nickel mine because of losses sustained from declining nickel prices. The results also included an 11.3 mln dlr extraordinary writedown on the value of the laid-up oil exploration drillship Regional Endeavour. BP Australia said it had sold its 33-1/3 stake in chemical maker <CSBP and Farmers Ltd> yielding an extraordinary profit of 18.9 mln dlrs and expected to finalise the sale of the 80 pct-owned <Kwinana Nitrogen Co> in the first half of 1987.  
JARDINE MATHESON HOLDINGS LTD <JARD.HKG> YEAR 1986. Shr 126 H.K. Cents vs 42 (adjusted) Final div 30 cents vs 10, making 40 vs 10 Net 479 mln dlrs vs 157 mln Turnover 10.4 billion vs 10.5 billion Note - Profits excluded extraordinary items 52 mln dlrs vs losses 426 mln. Dividend payable after general meeting on June 4, books close April 22 to May 5. Note - Bonus issue of four new "B" shares of par value 20 cents each for every one share of par value two dlrs each, books close August 3 to 10. REUTER N  
BHP CO LTD NET PROFIT 603.0 MLN DLRS FIRST THREE QTRS VS 813.0 MLN.  BHP CO LTD NET PROFIT 603.0 MLN DLRS FIRST THREE QTRS VS 813.0 MLN  
JARDINE MATHESON HOLDINGS LTD <JARD.HKG> YEAR 1986. Shr 126 H.K. Cents vs 42 (adjusted) Final div 30 cents vs 10, making 40 vs 10 Net 479 mln dlrs vs 157 mln Turnover 10.4 billion vs 10.5 billion Note - Profits excluded extraordinary items 52 mln dlrs vs losses 426 mln. Dividend payable after general meeting on June 4, books close April 22 to May 5. Note - Bonus issue of four new "B" shares of par value 20 cents each for every one share of par value two dlrs each, books close August 3 to 10.  
THE BROKEN HILL PTY CO LTD <BRKN.S> NINE MONTHS. First nine months ended Feb 28 Shr 47.4 cents vs 65.2 Net 603.0 mln dlrs vs 813.0 mln Sales 6.52 billion vs 6.53 billion Other income 454.9 mln vs 160.2 mln Shrs 1.27 billion vs 1.03 billion. Final div 20 cents vs same, making 37.5 vs same. One-for-five bonus issue Third qtr net 206.0 mln dlrs vs 238.6 mln Third qtr sales 2.11 billion vs 2.10 billion. NOTE - Div pay May 27. Div and bonus reg May 1. Nine months net is after tax 499.1 mln dlrs vs 722.6 mln, depreciation 509.5 mln vs 427.3 mln, interest 366.8 mln vs 215.8 mln and minorities 15.3 mln vs 15.7 mln but before net extraordinary profit 60.7 mln vs profit 43.2 mln. Nine month divisional net earnings before minorities were. Petroleum 184.9 mln dlrs vs 472.4 mln Minerals 254.6 mln vs 241.0 mln Steel 148.2 mln vs 191.1 mln Corporate items and investments profit 30.6 mln vs loss 75.8 mln.  
JARDINE MATHESON PLANS FOUR-FOR-ONE BONUS ISSUE. Jardine Matheson Holdings Ltd <JARD.HKG> said it planned a bonus issue of four new "B" shares of 20 H.K. Cents each for every ordinary share of par value two dlrs. A company statement said the firm expects to pay a total 1987 dividend of four cents per "B" share, while the "A" share dividend will be maintained at last year's level of 40 cents a share. Jardine Matheson announced earlier a 205 pct jump in 1986 net profits to 479 mln dlrs from 157 mln in 1985. Shareholders' funds increased to 5.02 billion dlrs from 4.77 billion in 1985, the statement said. It quoted chairman Simon Keswick as saying Jardine Matheson achieved the good performance through satisfactory results in most sections, especially Hong Kong Land Co Ltd <HKLD.HKG>, Jardine Fleming Co Ltd, and its business in Japan. He said the group's stake of about 35 pct in Hong Kong Land, which will be lowered to 26 pct after the completion of a reorganisation, is "a long term investment and now stands at a level which causes us no financial strain or problems of asset imbalance." Keswick said the issue of new "B" shares will give the group "the flexibility in the future to issue ordinary shares for expansion without jeopardising the shareholding stability which has been brought about through the group's recent restructuring." He said the new issue is pending approval from both the firm's shareholders and warrant holders, adding an appropriate adjustment will be made to the warrant exercise price. The Jardine group has nearly completed its reorganisation, with Jardine Matheson transferring its control of Hk Land to the new unit <Jardine Strategic Holdings Ltd>. Jardine Strategic will also hold majority stakes in the two companies spun off from Hk Land -- <Mandarin Oriental International Ltd> and <Dairy Farm International Holdings Ltd> -- plus cross holdings with Jardine Matheson. Jardine Matheson, which had debts of about 2.7 billion dlrs last year, will become debt free after the restructuring. "A positive cash flow from operations and disposals, continuing into 1987, has transformed our balance sheet," Keswick said. He noted the firm last year sold interests in airfreight operations, Australian properties and trucking business, and its remaining U.S. Oil and gas activities. Jardine Matheson decided to make a provision against its general trading business in the Middle East in view of the continuing weakness of oil prices, Keswick said. But he said the operations would be profitable in the longer term. He said the firm's function "has evolved into one primarily of strategy, structure and financial and personnel policy." He said Jardine Matheson will reduce the size of the board of directors but will simultaneously create a new Pacific regional board. He gave no further details of the change. Jardine Matheson shares rose 20 cents to 24.90 dlrs at midday on the Hong Kong stock market. In early trading it had fallen to 24.30 dlrs because of rumours yesterday that the firm planned a rights issue.  
BHP SEES STRONG FOURTH QUARTER BUT LOWER YEAR NET. The Broken Hill Pty Co Ltd <BRKN.S> said it expects a strong full year result, helped by sigificant investment allowance credits in the fourth quarter, but net will fall short of the record 988.2 mln dlrs earned in 1985/86 ended May 31. The group earlier reported its net earnings dropped to 603.0 mln dlrs in the first three quarters ended February 28 from 813.0 mln a year earlier. Third quarter net fell to 206.0 mln dlrs from 238.6 mln a year earlier and 220.3 mln in the second quarter ended November 31, BHP said in a statement. Earnings in the first nine months were at the lower end of share analysts' forecasts yesterday of a range of 600 mln to 620 mln dlrs. BHP held its annual dividend unchanged at 37.5 cents after declaring a steady final dividend of 20 cents and announced a one-for-five bonus issue to shareholders registered May 1. The bonus is being made from reserves which will not qualify for tax-free distribution after the introduction of dividend imputation next July 1. The bonus shares will not rank for the final dividend, BHP said. BHP said it should not be expected that the present rate of dividend will be maintained on the increased capital. The level of future dividends will be influenced by the implications of the proposed dividend imputation legislation, it said. As previously reported, dividends will become tax-free in shareholders' hands provided they are paid out of profits that have borne the full 49 pct company tax rate. BHP, which confined comment to the third quarter, said petroleum net earnings dropped to 98.8 mln dlrs from 139.6 mln a year earlier, and steel profit to 27.0 mln from 48.8 mln. BHP said the petroleum division earnings fall reflected generally lower oil prices and sales volumes from Bass Strait while the steel decline was due to a five pct fall in domestic sales and higher costs associated with the commissioning of new plant and some operational difficulties. The rise in third quarter minerals net to 95.7 mln dlrs from 81.5 mln a year earlier largely reflected the increase in ownership of the Mt Newman iron ore project, it said. The 60.7 mln dlr extraordinary gain, all in the third term, reflected a 240.7 mln profit on the sale of <Blue Circle Southern Cement Ltd> offset by a U.S. Oil acreage writedown.  
AVANA DEFENCE DOCUMENT FORECASTS PROFITS RISE. <Avana Group Plc>, defending itself against a bid from Ranks Hovis McDougall Plc <RHML.L>, RHM, forecast a 3.4 mln stg rise in profits in the 1986/87 year. It said pretax profit should rise to 23.0 mln stg in the year to April 2, 1987 from 19.6 mln previously, and reach 27.5 mln in 1987/88. It expects share earnings to rise to 46.9p from 38.7p and to 51.2p in 1987/88, and the 1986/87 dividend to be 17.0p net, a 41.6 pct increase. The bid from RHM, rejected by the food and bakery group, is worth about 270 mln stg. RHM currently has a 22.9 pct stake in purchases and acceptances.  
MITSUBISHI MOTORS AUSTRALIA MAKES 19 MLN DLR LOSS. <Mitsubishi Motors Australia Ltd> (MMAL) reported a 19.64 mln dlr net loss in calendar 1986 from a 5.80 mln dlr profit in 1985 on turnover of 837.79 mln dlrs from 942.89 mln. MMAL, 99 pct-owned by Mitsubishi Motors Corp <MIMT.T> and Mitsubishi Corp <MITT.T>,  said a tight market meant it had failed to recover 19 mln dlrs in costs sustained because of a weak Australian dollar. The company said its Magna car dominated its market segment with sales of 30,500 units against 26,900 in 1985. Total sales were 64,100, down 15,900. In addition, export of components to Japan increased with 15 mln dlrs invested in 1986 to expand output of aluminium cylinder heads to 26,000 per month from 6,000, MMAL said. Imported passenger car, light commercial and heavy vehicle sales suffered while local-manufacturing profitability was eroded by sales substantially below production capacity, it said. Australian car sales fell to 530,000 in 1985 from 696,000 in 1985, although MMAL said it lifted its market penetration to 12.1 pct from 11.5 pct. No dividend was recommended.  
ESSILOR INTERNATIONAL <ESSI.PA> YEAR ENDED DEC 31. Provisional consolidated net attributable profit 242.1 mln francs vs 240.1 mln. Investments 318 mln vs 317 mln. Dividend on ordinary shares 45 francs vs 42 francs. Dividend on priority shares 51 francs vs 48 francs.  
THYSSEN SEES GOOD 1987 PROFIT DESPITE STEEL LOSSES. Thyssen AG <THYH.F> said it expects to post a good profit in 1987 despite anticipated losses in its mass steel-making operations this year. Managing board chairman Dieter Spethmann told the annual meeting the group was satisfied with profit developments in the first half of the 1986/87 financial year to September 30. The group's other three divisions -- specialty steel, capital goods and trading -- had made a profit so far in 1986/87, he added. Spethmann said income from associate companies had also been good in early 1986/87. In 1985/86 Thyssen's world group profit fell to 370.1 mln marks from 472.4 mln in 1984/85, reflecting costs linked to its steel operations. The company's dividend was an unchanged five marks. A Thyssen spokesman told Reuters that planned job cuts at subsidiary Thyssen Stahl AG would be higher than announced earlier. Total job losses by 1989 were now expected to total up to 7,800 against original projections of 5,900. Thyssen Stahl employs some 40,000 people.  
<ELDERS RESOURCES LTD> FIRST HALF ENDED DEC 31. Net shr 7.6 cents vs 3.0 Int div 3.0 cents vs nil Net 16.93 mln vs 5.47 mln Sales 160.14 mln vs 2.35 mln. Other income 6.29 mln vs 10.05 mln Shrs 223.16 mln vs 183.68 mln. NOTE - Two-for-seven non-renounceable rights issue of 8.0 pct five-year subordinated convertible redeemable unsecured notes at 2.50 dlrs each. Each note is convertible into one share. Div pay May 1. Div and issue reg April 16. Net is after tax 7.04 mln dlrs vs 3.82 mln, interest 2.52 mln vs 1.14 mln, depreciation 2.43 mln vs 123,000 and minorities 3.41 mln vs 2.91 mln but before net extraordinary loss 821,000 vs nil. Company is owned 46.99 pct by Elders IXL Ltd <ELXA.S>.  
COSTCO WHOLESALE CORP <COST> 2ND QTR FEB 16 NET. Oper shr five cts vs six cts Oper net 1,100,000 vs 1,463,000 Revs 177.8 mln vs 331.5 mln Avg shrs 21.9 mn vs 25.7 mln First half Oper shr six cts vs five cts Oper net 1,121,000 vs 1.090,000 Revs 315.3 mln vs 567.4 mln Avg shrs 20.6 mln vs 25.6 mln NOTE: Operating net excludes gains of 659,000 dlrs, or three cts a share, vs 599 dlrs, or two cts a share, in quarter and 676,000 dlrs, or three cts a share, vs 599,000 dlrs, or two cts a share, in year from tax loss carryforward.  
MACMILLAN BLOEDEL <MMB> STOCK SPLIT APPROVED. MacMillan Bloedel Ltd said shareholders authorized a previously announced three-for-one stock split, applicable to holders of record April nine. The company said its stock will begin trading on a split basis on April 3, subject to regulatory approvals.  
NATIOONAL MEDICAL ENTERPRISES INC 3RD QTR OPER SHR 46 CTS VS 51 CTS.  NATIOONAL MEDICAL ENTERPRISES INC 3RD QTR OPER SHR 46 CTS VS 51 CTS  
NATIONAL MEDICAL ENTERPRISES INC <NME> 3RD QTR. Periods ended Feb 28 Oper shr 46 cts vs 51 cts Oper shr diluted 43 cts vs 50 cts Oper net 34.2 mln vs 39.8 mln Revs 823.3 mln vs 794.3 mln Avg shrs 74.9 mln vs 78.7 mln Nine mths Oper shr 1.29 dlrs vs 1.46 dlrs Oper shr diluted 1.20 dlrs vs 1.43 dlrs Oper net 99.4 mln vs 114.5 mln Revs 2.50 billion vs 2.22 billion Avg shrs 77.0 mln vs 78.3 mln NOTE: Year ago nine months operating net excludes loss of 2.0 mln dlrs, or two cts a share, from discontinued operations  
PORSCHE EXPECTS IMPROVEMENT IN U.S. SALES. Sports carmaker Dr. Ing. H.C.F. Porsche AG <PSHG.F> said it expects to post a satisfactory profit in 1986/87, with domestic volume sales seen lower but U.S. Sales anticipated higher. Managing board chairman Peter Schutz said domestic sales were expected to fall to 9,000 in the year ending July 31 from 11,340 in 1985/86. U.S. Sales should rise to more than 30,000 from 28,670 last year. Schutz made no specific profit or sales forecasts. Last month the company said it expected net profit to fall below 70 mln marks this year from 75.3 mln marks in 1985/86. For sales, Porsche expects its overall world volume this year to be above 50,000. Sales last year stood at 53,254, Schutz said. His expectations of a satisfactory profit were based on a combination of price rises and cost-cutting, he added. The expected drop in West German sales this year would be the result of the so-called "grey market" for Porsche cars, he said. When the dollar was strong against the mark, many Porsches had been bought locally in West Germany for illegal export to the U.S. Porsche has previously said domestic sales in the 1986/87 first half fell to 3,267 from 5,387 in the same 1985/86 period. The fact that U.S. Sales will account for a larger percentage of overall sales this year than before does not pose problems for profit, the Porsche board said. In the last 12 months it has raised U.S. Prices by around 20 pct without suffering any decline in sales. At the same time Porsche has hedged its dollar-denominated business for the 1986/87 business year, finance director Heinz Branitzki. Branitzki put Porsche's hedging costs in 1985/86 at 28 mln marks. In a speech to the annual meeting, Schutz said third-party orders placed with Porsche's engineering research centre in Weissach were rising and should top 100 mln marks this year for the first time. Porsche's net profit dropped sharply to 75.3 mln marks in 1985/86 from 120.4 mln marks in 1984/85.  
TEKTRONIX INC 3RD QTR SHR 48 CTWS VS 39 CTS.  TEKTRONIX INC 3RD QTR SHR 48 CTWS VS 39 CTS  
AMERICAN MEDICAL INTERNATIONAL INC <AMI> PAYOUT. Qtly div 18 cts vs 18 cts in prior qtr Payable May one Record April 15  
TEKTRONIX INC <TEK> 3RD QTR NET. Qtr ends March 7 Shr 48 cts vs 39 cts Net 18.7 mln vs 15.6 mln Revs 415.4 mln vs 384.5 mln Nine mths Shr 1.31 dlrs vs 78 cts Net 50.7 mln vs 31.8 mln Revs 1.04 billion vs 1.01 billion NOTE: per share for yr and qtr prior restated to reflect two-for-one stock split in Jan 1987.  
WESTINGHOUSE SAYS IT EXPECTS AT LEAST 10 PCT EARNINGS/SHR GROWTH THROUGH 89.  WESTINGHOUSE SAYS IT EXPECTS AT LEAST 10 PCT EARNINGS/SHR GROWTH THROUGH 89  
STANDARD BRED PACERS <STBD> YR LOSS. Shr loss 35 cts vs loss seven cts Net loss 718,269 vs loss 145,216 Revs 1,394,080 vs 2,608,083 NOTE: full name of company is standard bred pacers and trotters Inc.  
MOBILE COMMUNICATIONS CORP <MCCAA> YR NET. Shr 77 cts vs 37 cts Net 13.5 mln vs 4.8 mln Revs 70.8 mln vs 60.8 mln Avg shrs 17.5 mln vs 12.9 mln NOTE: 1986 net includes gain of 18 mln dlrs from sale in Dec 1986 of a 50 pct interest in its cellular telephone operations to BellSouth Corp. Net income also reflects non-recurring charges of 8,400,000 dlrs recorded in the fourth qtr 1986, primarily reflecting revaluation of assets. Full name of company is mobile communications corp of america.  
TOKHEIM CORP <TOK> 1ST QTR FEB 28 NET. Shr 23 cts vs 12 cts Net 1,535,000 vs 783,000 Rev 40.0 mln vs 28.7 mln  
SPARTECH<SPTN> SETS REVERSE SPLIT,DEBENTURE SALE. Spartech Corp said it plans a one for five reverse stock split and has filed a registration statement with the Securities and Exchange Commission covering a planned 25 mln dlr offering of convertible subordinated debentures due 1999. Spartech said the debenture offering will be underwritten by Kidder Peabody and Co. The company said the split will be effective on stock of record April eight.  
HENLEY GROUP INC <HENG> 4TH QTR LOSS. Shr loss 3.41 dlrs Net loss 354 mln vs loss 53 mln Revs 825 mln vs 830 mln Avg shrs 103.8 mln Year Shr loss 5.33 dlrs Net loss 426 mlnm vs loss 66 mln Revs 3.17 billion vs 1.83 billion Avg shrs 80 mln NOTE: The company had no shares outstanding in 1985. On March 16, it had 109,244,315 shares oustanding. Losses include pre-tax restructuring charges of 286 mln dlrs in both 1986 periods vs 47 mln dlrs in both 1985 periods 1986 year loss also includes charge of about 100 mln dlrs for amortization of good will  
BAYBANKS INC <BBNK> RAISES QTLY DIVIDEND. Qtly div 36 cts vs 33 cts prior Pay May one Record April 14  
TOKHEIM <TOK> SEES IMPROVING SALES IN 1987. Tokheim Corp, manufacturer of electronic petroleum marketing systems, said it expects shipments of Tokheim Convenience Systems (TCS), its new family of dispensers, to improve its sales trend throughout 1987. Tokheim said shipments of TCS will begin in the second quarter. Earlier, the company reported first quarter, ended February 28, earnings of 1.5 mln dlrs, or 23 cts a share, up from 783,000 dlrs, or 12 cts a share, in last year's first quarter. Sales rose as well, it said, to 40.0 mln dlrs, from 28.7 mln dlrs in the prior first quarter.  
WESTINGHOUSE <WX> SEES HIGHER EARNINGS GROWTH. Westinghouse Electric Corp said earnings per share growth will exceed sales growth and will be in the double digit range through 1989. In 1986, the company earned 4.42 dlrs a share on revenues of 10.7 billion dlrs. Speaking at a meeting for securities analysts, Douglas Danforth, Westinghouse's chairman, said the company's sales growth target is about 8.5 pct a year for 1988 and 1989, "given an economic environment that remains on a moderate growth course." He also said the company will make acquisitions, but he did not specify particular targets. Paul E. Lego, senior executive vice president told the analysts "our plans do not call for a multibillion dlr acquisition, even though our balance sheet can handle one. Despite this disclaimer, if we identify a major acquisition that has significnt value-creating for Westinghouse...we will consider it." He said the company would consider an acquisition candidate that is in an area compatable with Westinghouse's primiary businesses. Danforth said the corportation was focused in several key areas including defense electronics, financial services, broadcasting, electrical products and services for construction and industrial and utility markets. Danforth added that he expects Westinghouse's sales to grow faster than the markets the corportation serves and "surely faster than GNP." He said earnings per share growth is expected to consistently exceed the Standard and Poor's 500 index and return on equity will remain in the 18 to 21 pct range. Leo W. Yochum, senior executive vice president for finance, told the analysts "we will consider buying back stock" but there are no current plans for such a buyback. Yochum said that at the company's current level of earnings it could comfortably maintain higher debt levels and that Westinghouse will use its debt capacity to improve shareholder value. Last year, Westinghouse established a 790 mln dlrs restructuring reserve to be used for plant consolodation, assett writedowns and other items. Yochum said, the company spent 306 mln dlrs of that reserve in 1986 and will spend 344 mln dlrs of the reserves in 1987. The balance will be used in 1988. He also said, capital expenditures should be about 400 mln dlrs in 1987.  
GALACTIC RESOURCES LTD <GALCF> YEAR LOSS. Shr loss 1.30 dlrs Net loss 25.6 mln Revs 20.5 mln Note: Prior results not given. Shr and net include change in accounting policy, resulting in loss of 22.8 mln dlrs or 1.16 dlrs share. Results in U.S. funds  
UNIVERSAL HOLDING CORP <UHCO> 4TH QTR NET. Shr NA Net profit 2,000 vs profit 195,000 Revs 2,623,000 vs 2,577,000 Year Shr NA Net loss 425,000 vs profit 278,000 Revs 15.4 mln vs 8,637,000  
GALACTIC <GALCF> ADOPTS CONSERVATIVE ACCOUNTING. Galactic Resources Ltd, earlier reporting a 1986 loss of 25.6 mln U.S. dlrs, said it adopted a more conservative accounting policy, similar to other gold producers' accounting for exploration costs. As a result, the company retroactively charged all past exploration and related administration costs incurred on its properties against expenses in 1986, 1985 and 1984. Under the new policy, all future exploration and related administration costs will be written off to expenses rather than capitalized as an intangible asset, it said. Galactic said the accounting change resulted in a 22.8 mln U.S. dlr charge against 1986 earnings. It did not immediately disclose the affect of the change on prior years' results. The new accounting policy is not expected to adversely affect working capital position, future cash flows or the company's ability to conduct ongoing business operations, it said. Galactic said the charge includes 9.9 mln U.S. dlrs of costs concerning its Summitville Mine leach pad and 8.9 mln U.S. dlrs in waste removal costs, dyke construction and other mine developments. Galactic said under the prior accounting policy, the Summitville mine expenses would have been amortized over the life of the mine and charged against future earnings. The change will also result in lower depreciation and amortization charges against income of about 52 U.S. dlrs an ounce of gold produced in future periods, based on total estimated reserves of 617,000 ounces. Galactic said March leaching production at Summitville is expected to exceed 2,500 ounces, raising gold equivalent production since the June 5, 1986 start of leaching to 65,000 ounces.  
MARS STORE <MXXX> SEES QTR, YEAR LOSS AND CHARGE. Mars Store Inc said it expects to report a loss of about 800,000 dlrs for the fourth quarter and about 1.1 mln dlrs for the fiscal year ended January 31. As a result of the loss, the company said it has decided to discontinue the operations of its Big Value Outlets division, which will result in a yet undisclosed one time charge against earnings for the year. The estimated 1.1 mln dlrs year loss or about 50 cts a share, compares with earnings of 871,000 dlrs or 42 cts a share recorded last year. "The fourth quarter loss was affected by an abnormally high inventory shrinkage, lower than planned sales and higher markdowns related to increased promotional activity, all of which reduced fourth quarter gross margins," the company said. In order to concentrate on the company's core business, the operation of discount and promotional department stores, Mars said, it has decided to close the Big Value division.  
<INNOPAC INC> SIX MTHS FEBRUARY 28 NET. Shr 22 cts vs 45 cts Net 3,100,000 vs 5,100,000 Revs 103.4 mln vs 98.2 mln  
CORNERSTONE FINANICAL CORP <CSTN> SETS PAYOUT. Qtrly div eight cts vs eight cts prior Pay May 15 Record April 10  
CISTRON BIOTECHNOLOGY <CIST> SETS DIVIDEND. Cistron Biotechnology Inc said it will pay a stock dividend declared prior to the initial public offering of its common stock in August 1986 to stockholders of record prior to the common offering. Payment of the dividend was contingent on the closing bid price of the common stock averaging two dlrs or more per shares for the trading days within any consecutive ten day period ending before February 29, 1988. The company said that the contingency has been fulfilled. Payment of the stock dividend increases Cistron's outstanding common stock to 21,390,190 shares from 16,185,354 shares.  
WERNER ENTERPRISES INC <WERN> 4TH QTR, YR NET. Qtr ends Feb 28 Shr 18 cts vs 10 cts Net 2,051,000 vs 901,000 Revs 25.8 mln vs 19.2 mln Avg shrs 10.7 mln vs 9,059,600 12 mths Shr 87 cts vs 63 cts Net 9,020,000 vs 5,680,000 Revs 94.4 mln vs 73.7 mln Avg shrs 10.3 mln vs 9,059,600  
<REVENUE PROPERTIES CO LTD> YEAR LOSS. Shr loss eight cts vs loss 24 cts Net loss 1,150,000 vs loss 3,450,000 Revs 55.7 mln vs 78.1 mln  
GLAMIS GOLD <GLGVF> SETS COMMON STOCK SPLIT. Glamis Gold Ltd said it will ask shareholders at an April 1 extraordinary general meeting to approve a one-and-one-half for one common share split. Record date for the split will be set in the near future, the company said.  
NUCLEAR METALS <NUCM> HAS DELAY IN ORDERS. Nuclear Metals Inc said a delay in receiving certain new orders will result in negligible earnings per share for its fiscal second quarter. However, the company said it has been assured that the orders will be placed beginning in its fiscal third quarter and that it expects a strong rebound in earnings for the third and fourth quarters.  
SOURCE VENTURE CAPITAL INC YEAR. Shr profit nil vs loss nil Net profit 68,895 vs loss 160,893 Revs 3.3 mln vs 104,801  
<BRAMALEA LTD> YEAR NET. Shr 73 cts vs 55 cts Net 26.0 mln vs 17.1 mln Revs 673.3 mln vs 394.5 mln Avg shrs 29.3 mln vs 22.4 mln  
SOUTHWESTERN PUBLIC SERVICE CO<SPS> 2ND QTR NET. Shr 42 cts vs 42 cts Net 19.1 mln vs 19.5 mln Revs 184.9 mln vs 185.1 mln 12 mths Shr 2.17 dlrs vs 2.53 dlrs Net 97.0 mln vs 111.8 mln Revs 793.3 mln vs 828.8 mln Avg shrs 40.9 mln vs 40.5 mln NOTE: Year-ago restated.  
<L.B. NELSON CORP> 4TH QTR NET. Shr loss two cts vs loss 1.38 dlrs Net profit 34,000 vs loss 3,296,000 Revs 3,121,000 vs 1,546,000 Year Shr profit 28 cts vs loss 1.61 dlrs Net profit 1,088,000 vs loss 3,546,000 Revs 5,266,000 vs 4,169,000 Note: Current qtr per share figure adjusted to reflect provision for preferred stock dividends.  
SOUTHWESTERN BELL VOTES THREE-FOR-ONE STOCK SPLIT, 8.8 PCT DIVIDEND INCREASE.  SOUTHWESTERN BELL VOTES THREE-FOR-ONE STOCK SPLIT, 8.8 PCT DIVIDEND INCREASE  
IMATRON INC <IMAT> 4TH QTR LOSS. Shr loss 16 cts vs loss seven cts Net loss 3,450,000 vs loss 1,508,000 Sales 56,000 vs 1,187,000 Avg shrs 22,568,000 vs 20,591,000 Year Shr loss 38 cts vs loss 29 cts Net loss 7,977,000 vs loss 6,005,000 Sales 3,699,000 vs 2,391,000 Avg shrs 21,111,000 vs 20,578,000  
CONAGRA INC <CAG> REGULAR DIVIDEND SET. Qtly div 14-1/2 cts vs 14-1/2 cts prior Pay June One Record April 24  
LLC <LLC>, AMALGAMATED REPORT SIX MONTHS NET. Valhi Inc reported earnings of LLC Corp and the Amalgamated Sugar Co for the six month period ended December 31. Effective March 10, Amalgamated merged into LLC, which changed its name to Valhi. The following results reflect the operations of the companies prior to the merger. LLC Corp reported net income of 18.4 mln dlrs or 60 cts a share on revenues of 55.6 mln dlrs compared to 23.2 mln dlrs or 75 cts a share on revenues of 79.3 mln dlrs a year ago. This year's net includes an extraordinary loss of 201,000 dlrs and a gain of 4.7 mln dlrs. 1985's net included an extraordinary gain of 6.3 mln dlrs, Valhi said. Amalgamated reported net income of 10.65 dlrs per share or 69.7 mln dlrs on revenues of 371.3 mln dlrs compared to a net loss of 700,000 dlrs or 10 cts a share on revenues of 254.7 mln dlrs last year. Valhi said effective December 31, it changed its fiscal year-end from June 30 to December 31.  
SOUTHWESTERN BELL<SBC> VOTES SPLIT, UPS PAYOUT. Southwestern Bell Corp said its board voted a three-for-one stock split and increased the dividend 8.8 pct to 1.60 dlrs a share. On a post-split basis, the increased dividend will be 58 cts a share, payable May One to holders of record April 10. Southwestern Bell said the stock split is its first. It said shares will be mailed May 22, record May Four.  
HONEYWELL BULL SEES REVENUE GROWTH. Honeywell Bull Inc, owned by Honeywell Inc <HON>, <Cie des Machines Bull> and <NEC Corp>, said it expects its 1987 revenues to increase 15 to 20 pct over its current level of about 1.9 billion dlrs. Honeywell Bull president Jerome Meyer also told the press conference the company was profitable, adding the company aimed to improve profits over time. Honeywell Inc earlier today received 527 mln dlrs in cash for the sale of 57.5 pct of its computer business to Bull and NEC. Honeywell will retain a 42.5 pct interest in Honeywell Bull and Bull will own an equal amount. NEC owns 15 pct of the company. Meyer, who had been executive vice president of Honeywell Information Systems, said Honeywell Bull would work closely with NEC and Bull in both developing new products and marketing computers to multi-national companies. "We haven't been growing as fast as we'd like, but we are going to turn that around," Meyer said. He said business was soft in the U.S. He said the company was reorganizing its distribution programs and its staff, reassigning and laying off selected employees. He also said the company was hiring new workers. Honeywell Bull chairman Jacques Stern, who is also chairman of Bull, said he believed the computer industry could be a fast growing market for companies that provide the type of computers customers want. "I don't believe in the slump of the market," he said. The computer company would offer open systems so that customers would not be tied to a specific vendor or architecture, and it will also focus on tying computers together through communications networks.  
COMPUTER NETWORK TECHNOLOGY <CMNT> 4TH QTR LOSS. Shr loss eight cts vs loss eight cts Net loss 655,457 vs loss 566,429 Rev 258,712 vs nil Year Shr loss 31 cts vs loss 26 cts Net loss 2,725,882 vs loss 1,759,675 Rev 349,070 vs nil NOTE: Company's full name is Computer Network Technology Corp. 1985 revenues n.a. because 1986 was initial year of product revenue.  
<CANADIAN SATELLITE COMMUNICATIONS> SIX MTHS NET. Period ended February 28 Oper shr profit six cts vs loss 15 cts Oper profit 474,000 vs loss 1,175,000 Revs 17,946,000 vs 9,271,000 Note: Current shr and net exclude tax gain of 513,000  dlrs or five cts share full name <Canadian Satellite Communications Inc>  
DEAN FOODS CO <DF> 3RD QTR NET. Shr 35 cts vs 40 cts Net 9,246,000 vs 10,719,000 Sales 367.9 mln vs 315.1 mln Nine mths Shr 1.03 dlrs vs 1.13 dlrs Net 27,490,000 vs 30,160,000 Sales 1.06 billion vs 915.3 mln  
DEAN FOODS CO <DF> RAISES DIVIDEND. Qtly div 13-1/2 cts vs 11-1/2 cts prior Pay June 15 Record May 22  
DOSKOCIL <DOSK> SHAREHOLDERS VOTE REVERSE SPLIT. Doskocil Cos Inc said its shareholders approved a one-for-10 reverse stock split, which is expected to become effective by April 30. The company said the reverse split will reduce the its outstanding shares to about six mln from 60 mln.  
EDUCATION SYSTEMS <ESPC> YEAR NET. Shr 27 cts vs 34 cts Net 174,390 vs 222,720 Revs 4,948,622 vs 4,516,042 Note: Current net includes non-recurring loss on investments of 82,034. Full name is Education Systems and Publications Corp.  
FIRST NATIONAL CORP <FTNC> 4TH QTR. Shr loss 29 cts vs loss 15 cts Net loss 513,542 vs loss 263,708 Revs 38,000 vs nil Year Shr loss 24 cts vs loss 10 cts Net loss 417,552 vs loss 142,010 Revs 171,000 vs nil  
BEARD CO <BEC> YEAR LOSS. Shr loss 57 cts vs profit 3.02 dlrs Net loss 3,606,000 vs profit 8,294,000 Revs 15.3 mln vs 23.9 mln Note: Net includes gains from sale of USPCI Inc <UPC> stock of 1.5 mln vs 20.5 mln Year-ago net includes loss from discontinued operations of 10.3 mln.  
ESSEX COMMUNICATIONS CORP <ESSXA> YEAR LOSS. Shr loss 47 cts vs loss 63 cts Net loss 1,450,000 vs loss 1,930,000 Revs 14.7 mln vs 13.3 mln Note: Year-ago resulted restated to exclude Michigan cable systems sold in 1985.  
DENNING MOBILE ROBOTICS INC <GARD> 4TH QTR LOSS. Shr loss nine cts loss 12 cts Net loss 585,866 vs loss 455,866 Avg shrs 6,841,638 vs 3,651,505 Year Shr loss 34 cts vs loss 54 cts Net loss 2,158,709 vs loss 1,931,397 Avg shrs 6,296,701 vs 3,586,914 Note: Company has no revs as it is in product development stage. Shr and avg shrs data reflect 1-for-25 reverse split in November 1986.  
SCOTT'S LIQUID GOLD INC YEAR OPER NET. Oper shr two cts vs 10 cts Oper net 162,300 vs 773,400 Revs 16.6 mln vs 16.5 mln Avg shrs 8,282,480 vs 8,045,493 NOTE: Excludes gains of 138,000 dlrs or two cts/shr vs 733,000 dlrs or nine cts from benefit of tax loss carryforwards.  
OVERSEA-CHINESE BANKING CORP LTD <OCBM.SI> YEAR. Shr 21 cts vs 20 cts Fin Div 8.0 cts gross vs 9.0 cts Group net 104.8 mln dlrs vs 100.9 mln Note - Fin div pay June 6, record May 19.  
UNITED OVERSEAS BANK LTD <UOBM.SI> YEAR. Shr 26.9 cts vs 25.1 cts Fin Div 8.0 pct gross vs 8.0 pct Group net 106.1 mln dlrs vs 99.0 mln Note - Fin div pay May 25, record April 18.  
STRAITS TRADING CO LTD <STCM.SI> YEAR. Shr 8.7 cts vs 7.7 cts Fin div 9.0 cts vs 9.0 cts Group net 23.5 mln dlrs vs 20.8 mln Turnover 212.7 mln dlrs vs 595.4 mln Note - Fin div pay May 27, record May 23. REUTER  
SINGAPORE LAND LTD <LNDH.SI> FIRST HALF FEB 28. Shr 8.43 cts vs 9.61 cts Int div nil vs nil Group net 7.8 mln dlrs vs 8.9 mln Turnover 30.6 mln dlrs vs 33.5 mln Note - The company said group net profits for the year ending this Aug 31 should amount to 13.5 mln dlrs.  
BANK FUER GEMEINWIRTSCHAFT AG <BKFG.F> YEAR 1986. Year ended December 31, 1986. Group net profit 30 mln marks vs 35 mln. Balance sheet total 61.50 billion marks vs 63.67 billion. Credit volume 42.00 billion marks vs 43.15 billion. Parent bank net profit 20 mln marks vs 20 mln. Transfer to trades union holding co 80 mln marks vs 80 mln. Payment to open reserves 20 mln marks vs 20 mln. Balance sheet total 48.67 billion marks vs 49.01 billion. Partial operating profit 182.6 mln marks vs 313.7 mln. Interest surplus 897.9 mln marks vs 981.1 mln. Surplus on commission 208.8 mln marks 188.1 mln. Ordinary expenditure 969.7 mln marks vs 909.7 mln. Earnings from subsidiaries through profit transfer agreements 494.2 mln marks vs 54.2 mln. Earnings from writing back provisions 326.5 mln marks vs 65.6 mln. Published risk provisions 736.3 mln marks vs 224.0 mln. Credit volume 32.63 billion marks vs 33.51 billion. Group figures for 1986 exclude <BSV Bank fueer Sparanlagen und Vermoegensbildung AG> which no longer consolidated.  
BFG PARTIAL OPERATING PROFITS FALL SHARPLY IN 1986. Bank fuer Gemeinwirtschaft AG <BKFG.F>, BfG, partial operating profits fell to 182.6 mln marks in 1986 from 313.7 mln in 1985, new majority shareholder Aachener und Muenchener Beteiligungs-AG <AMVG.F>, AMB, said. But total operating and extraordinary profits, including earnings from currency and securities trading on the bank's own account and earnings from the sale of holdings in other firms, were more than double the previous year's level, AMB said. BfG's 1986 accounts were included in a prospectus for AMB's capital increase, which is to finance the insurance company's acquisition of 50 pct plus one share of BfG. Despite the fall in partial operating profits, BfG paid an unchanged 20 mln marks into open reserves and transferred an unchanged 80 mln marks to its trade union holding company, <Beteiligungsgesellschaft fuer Gemeinwirtschaft AG>, from which AMB has acquired the majority stake. The bank has said its business last year suffered from the turbulence around the troubled trade-union-owned housing concern Neue Heimat. AMB said the 500 mln mark drop in BfG's business volume to 50.1 billion marks affected the interest surplus. The interest surplus, which fell to 897.9 mln marks from 981.1 mln, was also depressed by the 0.1 point fall in the interest margin to 1.9 pct. A rise in the surplus on commission to 208.8 mln marks from 188.1 mln was not enough to compensate for this. The rise in total operating profits enabled BfG to step up risk provisions, with country risks particularly emphasised because of the continuing difficulties of some countries. Disclosed risk provisions, which under West German accounting rules do not necessarily reflect the full amount, rose to 736.3 mln marks from 224.0 mln. BfG's parent credit volume eased to 32.63 billion marks in 1986 from 33.51 billion. Foreign debtors accounted for 24 pct of this credit volume, and Latin American debtors accounted for 14.7 pct of total lending to foreigners. BfG posted extraordinary earnings from the sale of 25.01 pct of <Volksfuersorge Deutsche Lebensversicherung AG>, 74.9 pct of <BSV Bank fuer Sparanlagen und Vermoegensbildung AG> and five pct of <Allgemeine Hypothekenbank AG>. The sale was linked to AMB's acquisition of a majority of BfG. These sales show up as 494.2 mln marks from profit transfer agreements and 326.5 mln from writing back risk provisions.  
BASF 1986 world group pre-tax profit 2.63 billion marks vs 3.04 billion.  BASF 1986 world group pre-tax profit 2.63 billion marks vs 3.04 billion  
BASF AG <BASF.F> 1986 YEAR. Year to December 31. World group pre-tax profit 2.63 billion marks vs 3.04 billion. World group turnover 40.47 billion vs 44.38 billion. World group investment in fixed assets 2.66 billion vs 2.46 billion. Parent company pre-tax profit 1.97 billion vs 1.91 billion. Parent turnover 18.72 billion vs 20.46 billion. Parent domestic turnover 7.10 billion vs 8.14 billion. Parent foreign turnover 11.62 billion vs 12.32 billion. Parent investment in fixed assets 1.14 billion vs 884 mln.  
ARBED SA <ARBB.BR> YEAR 1986. Net profit 890 mln Luxembourg francs vs 1.12 billion. Turnover 57.8 billion francs vs 65.3 billion. Cash flow 5.72 billion francs vs 6.70 billion. Steel production 3.74 mln tonnes, down seven pct. Board will decide on April 24 whether to pay a dividend. No dividend has been paid since 1984.  
ARBED SEES NEED TO MAINTAIN PRESSURE ON COSTS. The recent deterioration in the steel market makes it important for Arbed SA <ARBB.BR> to maintain efforts to reduce costs, the company said in a statement. It reported that its competitive position had weakened considerably in the second half of 1986, leading to a seven pct cut in steel output over the whole of the year to 3.74 mln tonnes. Arbed had managed to make a 890 mln franc net profit, slightly down from the 1.12 billion profit in 1985, thanks to lower raw material costs and prudent management, the company said. Arbed said the early months of 1987 had seen the market deteriorate further, but the decision of the European Community to maintain anti-crisis measures, at least provisionally, should under normal circumstances have a beneficial effect. EC ministers have agreed to extend a quota production system while discussions continue on an industry plan for capacity reductions. Arbed said in current conditions, cost cutting efforts remain necessary to avoid any weakening of resources which have been built up over the last three years.  
BASF <BASF.F> SAYS 1986 RESULTS AFFECTED BY DLR. BASF AG said the volatile currency situation last year, particularly the fall of the dollar, led to sharp drops in turnover denominated in marks and to price reductions for exports from domestic production. But in a statement accompanying year-end figures, the group said it expected satisfactory business development over the next months. "At the moment we do not expect any extraordinary influences such as there were last year," it said. Orders in hand and incoming orders were steady at a high level. BASF reported 13.6 pct lower 1986 world group pre-tax profit at 2.63 billion marks compared to 1985. The unusual situation on the crude oil market last year also produced a clear sales slide in the oil and gas sector and forced price declines for petrochemical products, BASF said. The fall in pre-tax profit corresponded to the losses on stocks in the oil and gas sector at the beginning of 1986. In the parent company, the positive earnings development continued, it said, where pre-tax profit rose by 3.2 pct to 1.97 billion marks. The decline in parent company turnover was balanced out by increased capacity use and price declines in raw materials. In 1986, world group turnover was off 8.8 pct at 40.47 billion marks compared to 1985, BASF said. Parent turnover fell 8.5 pct to 18.72 billion. Turnover increases, with the exceptions of the sectors fine chemicals and informations systems, had only been achieved in those areas widened last year through acquisition in 1985. Results from these had been taken only partly into the fourth quarter of that year but fully included in 1986 data. So far in the current year, the investment volume of the parent company and the world group is exceeding that in 1986, BASF said, without giving concrete figures.  
ROYALE BELGE <RBVB.BR> YEAR 1986. Non-consolidated net profit 3.435 billion francs vs 2.330 billion. Turnover 39.3 billion francs (no direct comparison) Own funds 20 billion francs vs 9.2 billion after transfer of 1.28 billion francs from profits and 8.5 billion from sale of securities. Note - company said the figure is slightly lower because French branches have become group subsidiaries). Proposed net dividend on ordinary shares 100 francs, including 20 franc supplement due to the exceptional character of results, vs 71.9 francs. Note - Company was created in May 1986 by the merger of (Royale Belge Vie-Accidents) and (Royale Belge Incendie-Reassurance). Vie-Accidents shareholders received eight new shares and Incendie-Reassurance shareholders six for every share held in the old companies. Comparisons are therefore company calculations.  
SLOUGH ESTATES VIEWS 1987 PROSPECTS CONFIDENTLY. Slough Estates Plc <SLOU.L> said it views the prospects during 1987 with confidence. In a statement accompanying its 1986 results, it reported a rise of over 10 mln stg in 1986 pretax profit to 49.6 mln stg and said there are signs that the existing threat of excess supply may be lessened in 1987. There has also been a return of interest in industrial investment. An external appraisal of the group's investment properties was carried out last year which found their gross value to be 851.3 mln stg as at Dec 31.  
RUGBY WELL PREPARED FOR NEW CEMENT COMPETITION. Rugby Portland Cement Plc <RBYL.L> said it was well placed to operate in the new circumstances following the ending in February of the 53-year old cement manufacturers common price and marketing arrangements. In a statement following the release of its 1986 results, IT stated that the current year had started well. It reported that pretax profits in the year rose to 35.46 mln stg from 21.84 mln previously on turnover higher at 313.3 mln after 252.2 mln. The strong recovery of the first six months continued into the second half, although U.K. Cement demand rose only modestly. Results benefitted from cost cutting and higher volumes. The decision by the Cement Makers Federation to end the pricing agreement reflected pressure from higher competition due to growing imports and the possibility that the system would be taken to the Restrictive Practices Court by the U.K. Government. It stated that its John Carr unit benefitted from strong organic growth, although overseas its Cockburn operation had a difficult period with high maintenance costs and increased depreciation charges. The company is proposing to change its name at the next annual meeting to <Rugby Group Plc>. Rugby said it spent 27 mln stg on acquisitions in 1986. It noted that its Western Australia hotels company had agreed to sell the Parmelia hotel for 31.5 mln Australian dlrs, some seven mln stg above end-1986 book value. The results were largely in line with forecasts and Rugby shares were little changed at 242p after 241 at Friday's close.  
ORACLE SYSTEMS <ORCL> FILES FOR OFFERING. Oracle Systems Corp said it has filed for an offering of 2,300,000 common shares, after adjustment for a recent two-for-one stock split, including 800,000 to be sold by shareholders. The company said lead underwriters are Alex. Brown and Sons Inc <ABSB> and <Donaldson, Lufkin and Jenrette Securities Corp>.  The offering is expected to be made in early April, with company proceeds used to repay all short-term debt, for working capital and for possible acquisitions. Oracle said after the offering it will have about 28.5 mln shares outstanding.  
SAGE ANALYTICS <SAII> SETS STOCK SPLIT. Sage Analytics International Inc said its board has declared a three-for-two stock split, payable June 22 to holders of record on June Eight. The company also said it will redeem warrants till outstanding on June Two at 10 cts each.  Each two warrants allow the purchase of one common share at six dlrs through June One.  There are presently 800,000 warrants outstanding.  
CLABIR <CLG> DIVIDENDS NOT TAXABLE. Clabir Corp said it has determined all dividends paid on its Class A common in 1986 are not taxable as dividend income. While this is a preliminary estimate, the company said, it may be used by shareholders when preparing 1986 income tax returns.  
LENNAR <LEN> SEES STRONG EARNINGS FOR 1987 YEAR. Lennar Corp chairman and president, Leonard Miller, said the current backlog of orders and the strong economy point to strong revenues and earnings for the balance of fiscal 1987. He said the company's backlog of sales deposits on Feb 28 was 2,416, an increase of 976 units over the previous year. Lennar recorded net earnings for the first quarter 1987 of 4,403,000, or 51 cts per share, compared to 1,775,000, or 20 cts per share the prior first quarter. It recorded net earnings of 12.5 mln dlrs, or 1.43 dlrs per share, for fiscal 1986. The company also said that at its April 29 annual meeting, shareholders will vote on increasing the company's authorized common stock to 45 mln shares from 15 mln. This will include 30 mln shares of common stock and 15 mln shares of class B common stock, it added. Those shareholders who elect to convert their shares into class B stock will be entitled to 10 votes per share while other shareholders will retain one vote per share, Lennar said. The company said if this is approved, it intneds to pay holders of Class B stock a quarterly cash dividend of five cts per share and holders of the other common stock a quarterly cash dividend of six cts per share.  
WALBRO <WALB> SEES STRONG 1ST QTR RESULTS. Walbro Corp said it expects its first-quarter results to reach "all-time highs." It projected sales exceeding 32 mln dlrs, or up 21 pct from the 26,488,000 dlrs reported for the 1986 first quarter. It said the previous high for a single quarter was 27,179,000 dlrs for the 1986 fourth quarter. Walbro estimated income for the quarter will exceed first-quarter 1986 income, which was 1,953,000 dlrs, or 66 cts a share, by at least 40 pct. It said the first quarter of 1986 had been the previous income record for a single quarter. Walbro cited strong demand for its fuel systems products, especially automotive electronic fuel injection components and carburetors for lawn and garden applications. However, it said it is unlikely the company will sustain the same record pace of sales and income throughout 1987, due to an expected reduction in throttle body sales. "It now appears likely that the company's throttle body business with General Motors Corp <GM> will peak in the first six months of 1987, continue at reduced levels to July 1988 and suffer an interruption for the period from July 1988 to July 1989," Walbro added.  
METROMAIL <MTML> SEES FLAT YEAR NET. Metromail Corp said it expects earnings for the year to be about flat due to higher expenses caused by an expansion of data processing capabilities and startup costs associated with new cooperative programs that will continue into the fourth quarter. The company today reported earnings for the nine months ended March One of 7,214,900 dlrs, down from 7,752,800 dlrs a year before.  For all of last year it earned 10.9 mln dlrs.  
REGENCY CRUISTS <SHIP> CORRECTS EARNINGS. Regency Cruises Inc said its earnings per share for the year 1986 were 36 cts per share, not the 37 cts it reported on March 11. The company lost 10 cts per share in 1985.  
ANECO REINSURANCE CO LTD <ANECF> YEAR NET. Shr profit 80 cts vs loss 1.60 dlrs Net profit 1,673,960 vs loss 3,292,663 NOTE: 1986 net includes gain on bond portfolio of 1,160,000 dlrs and 5,600,000 dlr provision for losses on discontinued liability and multi-peril lines of reinsurance.  
TEXAS INTERNATIONAL CO <TEI> 4TH QTR LOSS. Shr loss 36 cts vs loss 36 cts Net loss 20.1 mln vs loss 12.6 mln Revs 12.5 mln vs 24.9 mln Avg shrs 55.8 mln vs 34.7 mln Year Shr loss 1.11 dlrs vs loss 1.05 dlrs Net loss 50.8 ln vs loss 31.9 mln Revs 63.7 mln vs 106.9 mln Avg shrs 45.8 mln vs 30.2 mln NOTE: Net includes extraordinary gains of 247,0000 dlrs vs nil in quarter and 809,000 dlrs vs 425,000 dlrs in year. 1985 year net includes 6,700,000 dlr credit for previous overpayments of windfall profits taxes.  
SCIENTIFIC MICRO <SMSI> SEES HIGHER REVENUES. Scientific Micro Systems Inc said it expects first quarter revenues to rise by about 60 pct to 24 mln dlrs, compared with the 15 mln reported for the first quarter last year. The company said it experienced revenue growth across all product lines during the quarter. It also said revenue growth should continue during the year and the company should experience improved profitability in the second half when acquisition and new product introduction costs will not have a significant impact on earnings.  
TEXAS INTERNATIONAL <TEI> HAS UNQUALIFIED AUDIT. Texas International Inc said it has received an unqualified audit opinion from auditor Arthur Andersen and Co. The company had received a qualified opinion on 1985 financial statements subject to its ability to resolve negotiations with its U.S. bank group.  Subsequently, it sold almost all its domestic oil and natural gas properties and retired all U.S. bank debt in March 1987 with part of the proceeds.  
MILTOPE GROUP INC <MILT> 4TH QTR NET. Shr 10 cts vs 29 cts Net 584,000 vs 1,688,000 Sales 19.8 mln vs 16.9 mln Avg shrs 5,959,000 vs 5,762,000 Year Shr 68 cts vs 96 cts Net 4,013,000 vs 5,430,000 Sales 68.1 mln vs 61.3 mln Avg shrs 5,934,000 vs 5,679,000 Backlog 67.9 mln vs 60.6 mln  
ALOETTE COSMETICS INC <ALET> 4TH QTR DEC 31 NET. Shr 12 cts vs 12 cts Net 337,000 vs 235,000 Revs 3,350,000 vs 1,642,000 Avg shrs 2,935,734 vs 2,000,000 Year Shr 69 cts vs 56 cts Net 1,815,000 vs 1,112,000 Revs 12.1 mln vs 7,709,000 Avg shrs 2,648,257 vs 2,000,000  
INTERNATIONAL PROTEINS CORP <PRO> YEAR NET. Oper shr 49 cts vs 22 cts Oper net 1,018,000 vs 468,000 Sales 95.0 mln vs 98.3 mln NOTE: Net excludes tax credits of 284,000 dlrs vs 310,000 dlrs.  
CSM SYSTEMS INC <CSMS> YEAR ENDED DEC 31 LOSS. Shr loss 20 cts vs profit 24 cts Net loss 173,578 vs profit 211,324 Revs 4,558,244 vs 5,595,644 NOTE: Earnings per share restated retroactively for all periods to reflect 20 pct stock dividend in April 1984 and 25 pct stock split September 1985. Revenues include progress receivables on long-term contracts not billed to customers, and reflect the proportionate elements of profit as revenues based on stage of completion of long term contracts.  
COGNITRONICS CORP <CGN> 4TH QTR LOSS. Shr loss 78 cts vs loss 18 cts Net loss 1,671,000 vs loss 382,000 Revs 3,261,000 vs 4,427,000 Year Shr loss 1.35 dlr vs loss 15 cts Net loss 2,902,000 vs loss 331,000 Revs 13.5 mln vs 16.1 mln NOTE: 1986 and 1985 4th qtr net includes charges of 867,000 dlrs or 40 cts a share and 222,000 or 10 cts a share, respectively.  
INTELLIGENT SYSTEMS <INP> SETS INITIAL PAYOUT. Intelligent Systems Master Limited Partnership said its board declared an initial quarterly dividend of 25 cts per unit, payable April 10 to holders of record March 31. The partnership, formed at year-end by the conversion of Intelligent Systems Corp from corporate form, said its board has approved in principle quarterly dividend of 15 to 25 cts per quarter for calendar 1987. It said as part of its restructuring it may sell some of its assets this year, with unitholders receiving either cash from the sale or stock in the acquiring company.  
QUEST MEDICAL INC <QMED> 4TH QTR LOSS. Shr loss six cts vs profit two cts Net loss 463,473 vs profit 126,835 Revs 3,506,066 vs 3,082,499 Year Shr loss four cts vs profit three cts Net loss 323,214 vs profit 187,893 Revs 13.8 mln vs 10.8 mln  
DUNE RESOURCES LTD <DNLAF> 4TH QTR NET. Shr profit one ct vs loss two cts Net profit 27,000 vs loss 69,000 Revs 295,000 vs 264,000 Year Shr loss eight cts vs loss three cts Net loss 262,000 vs loss 88,000 Revs 1,004,000 vs 1,248,000  
AW COMPUTER SYSTEMS INC <AWCSA> YEAR END DEC 31. Shr 18 cts vs 17 cts Net 584,493 vs 540,977 Revs 4,685,930 vs 4,524,315  
DATRON CORP <DATR> 4TH QTR NET. Shr 19 cts vs 13 cts Net 166,000 vs 118,000 Rev 3.2 mln vs 2.5 mln Year Shr 34 cts vs 30 cts Net 303,000 vs 269,000 Rev 10.8 mln vs 10.2 mln  
CENTRONICS <CEN> SETS PREFERRED PURCHASE RIGHTS. Centronics Corp said its board declared a dividend distribution of one preferred share purchase right on each outstanding common share payable to holders of record April 9. The rights, which will expire 10 years later, will entitle shareholders to buy one-hundredth of a share of a new series of preferred at an exercise price of 20 dlrs. The rights will be exercisable only if some one acquires 30 pct or more of Centronic's common or announces an offer which would result in ownership of 30 pct or more of the stock. Centronics said its board will be entitled to redeem the rights at two cts per right at any time before a 30 pct position has been acquired. If the rights become exercisable, the company said, those held by shareholders other than the owner of 30 pct or more of the stock will entitle the holder to purchase a number of common shares having a market value twice the right's exercise price.  
MCCLAIN INDUSTRIES <MCCL> SETS STOCK SPLIT. McClain Industries Inc said its board declared a four-for-three stock split, payable 30, record April 15. The company also said it plans to open within the next 90 days a 114,000 square foot plant in Macon, Ga., that will allow it to expand production of transfer trailers and other products.  
CHEROKEE GROUP INC <CHKE> 1ST QTR FEB 28 NET. Shr 22 cts vs 16 cts Net 2,460,000 vs 1,730,000 Sales 37.0 mln vs 27.3 mln NOTE: Share adjusted for two-for-one stock split in February 1987.  
DRAVO <DRV> TO HAVE FIRST QUARTER LOSS. Dravo Corp said it expects a first quarter loss of about 30 cts per share, compared with a year-earlier profit of one ct, and said operating earnings for all of 1987 may not match 1986's earnings of 61 cts per share from continuing operations. Dravo saidperformance so far this year in its engineering and construction segment has not met earlier expectations. It said the first quarter will be impacted by writedowns resulting fromn revised estimates of costs required to complete projects and by delays in starting work on jobs originally forecasted to contribute to first quarter earnings. Dravo further said it has given the investor group buying Dravo's river transportation, stevedoring and pipe frabrication businesses additional time to structure the necessary permanenty financing, and closing is now expected in the third quarter.  
GENERAL PUBLIC UTILITIES CORP <GPU> TWO MTHS NET. Shr 97 cts vs 81 cts Net 60.8 mln vs 51.1 mln Revs 487.4 mln vs 529.7 mln 12 mths Shr 3.42 dlrs vs 2.18 dlrs Net 215.0 mln vs 137.2 mln Revs 2.74 billion vs 2.88 billion NOTE: 1986 results restated for change in accounting.  
METROMAIL CORP <MTML> 3RD QTR MARCH 1 NET. Shr 25 cts vs 32 cts Net 2,414,500 vs 3,027,500 Rev 26.2 mln vs 23.5 mln Nine months Shr 76 cts vs 82 cts Net 7,214,900 vs 7,752,800 Rev 69.2 mln vs 64.9 mln  
SIERRACIN CORP <SER> 4TH QTR NET. Oper shr profit nine cts vs loss 26 cts Oper net profit 313,000 vs loss 860,000 Revs 18.8 mln vs 16.4 mln Year Oper shr profit 45 cts vs loss 47 cts Oper net profit 1,543,000 vs loss 1,582,000 Revs 72.7 mln vs 61.4 mln Note: Current qtr and year figures exclude losses from discontinued operations of 179,000 dlrs, or five cts per share and 901,000 dlrs, or 27 cts per share, respectively. Prior qtr and year figures exclude losses from discontinued operations of 600,000 dlrs, or 17 cts per share and 1.1 mln dlrs, or 33 cts per share, respectively.  
COMPUTER MICROFILM CORP <COMI> YEAR NET. Shr 23 cts vs 14 cts Net 439,100 vs 259,948 Revs 9,918,413 vs 9,683,392 NOTE: Share adjusted for five pct stock dividend.  
COMPUTER MICROFILM <COMI> SEES HIGHER 1987 NET. Computer Microfilm corp said it expects revenues of over 12.5 mln dlrs and higher earnings in 1987. The company today reported 1986 earnings of 439,100 dlrs on revenues of 9,918,413 dlrs, up from earnings of 259,948 dlrs and revenues of 9,683,392 dlrs a year before.  
KEVLIN MICROWAVE CORP <KVLM> 3RD QTR FEB 28 NET. Shr profit nil vs profit five cts Net profit 9,879 vs profit 118,852 Revs 1,581,894 vs 1,878,052 Avg shrs 2,627,952 vs 2,617,090 Nine mths Shr loss two cts vs profit 24 cts Net loss 51,001 vs profit 619,860 Revs 4,006,024 vs 6,646,587 Avg shrs 2,532,959 vs 2,621,397 NOTE: Nine mth orders 4,601,463 dlrs, up 39 pct, and backlog at end of period 4,906,670 dlrs, up 83 pct from a year before.  
UNIFAST INDUSTRIES INC <UFST> YEAR NET. Shr 62 cts vs 19 cts Net 961,826 vs 226,429 Sales 22.8 mln vs 16.1 mln Avg shrs 1,543,230 vs 1,172,039  
AZTEC MANUFACTURING CO <AZTC> 4TH QTR LOSS. Shr loss 77 cts vs loss 1.49 dlrs Qtly div two cts vs two cts prior Net loss 3,860,000 vs loss 7,541,000 Sales 2,538,000 vs 3,648,000 Year Shr loss 78 cts vs loss 1.58 dlrs Net loss 3,935,000 vs loss 7,999,000 Sales 10.5 mln vs 16.3 mln NOTE: Dividend pay April 24, record April 10. 1986 net both periods includes pretax charge 2,944,000 dlrs from writedown of assets and provision 726,000 dlrs for obsolete and nonproductive inventory and other items.  
GAC LIQUIDATING TRUST <GACTZ> YEAR NET. Shr 1.05 dlrs vs 27 cts Net 4,193,000 vs 1,070,000 Revs 9,377,000 vs 9,444,000 NOTE: 1986 net includes gain two mln dlrs from reduction of loss allowance on undeveloped land.  
GCA CORP <GCA> YEAR. Shr loss 1.77 dlrs vs loss 10.47 dlrs Net loss 24.9 mln vs loss 123.1 mln Revs 123.1 mln vs 156.5 mln NOTE:1985 loss includes loss of 51.2 mln dlrs from discontinued operations. 1986 loss includes gain of 6.8 mln dlrs from discontinued operations.  
DOW <DOW> SEES RECORD ANNUAL PROFITS IN 1987. Dow Chemical Co believes strong margins for chemical products could result in record earnings this year, Chairman Paul Oreffice said. "I'm hoping we will have the best year in our history profit-wise," he told reporters following a speech at The American Institute of Chemical Engineers meeting. "I believe the entire chemical industry is headed for a record year, or close to it," Oreffice said. In 1986, Dow earned 741 mln dlrs an increase from 1985's 58 mln dlrs brought about by falling oil prices and resulting cheaper feedstock costs. Oreffice also said Dow's profit margins on chemical products would improve this year over last year. He said reduced capacity in the chemical industry and the weakened U.S. dollar would also contribute to the company's improved performance. Dow will spending about 650 mln dlrs on research and development in 1987 with an emphasis on new specialty chemicals, Oreffice said.  
CHEROKEE GROUP <CHKE> 1ST QTR FEB 28 NET. Shr 22 cts vs 16 cts Net 2,460,000 vs 1,730,000 Sales 37.0 mln vs 27.3 mln Per share figures adjusted for two-for-one stock split of February 1987.  
MISCHER CORP <MSHR> 4TH QTR LOSS. Shr loss 67 cts vs profit 60 cts Net loss 1,398,000 vs profit 1,250,000 Revs 8,834,000 vs 20.9 mln Year Shr loss 2.81 dlrs vs loss 15 cts Net loss 5,864,000 vs loss 310,000 Revs 52.1 mln vs 82.7 mln  
WICHITA INDUSTRIES INC <WRO> 4TH QTR NET. Shr profit 32 cts vs profit eight cts Net profit 936,000 vs profit 249,000 Revs 348,000 vs 1,150,000 Year Shr loss 2.15 dlrs vs loss 19 cts Net loss 6,095,000 vs loss 469,000 Revs 1,554,000 vs 4,254,000 NOTE: Results include credits of 556,000 and 1,141,000 for the latest qtr and yr vs 112,000 and 656,000 for prior periods from tax loss carryforwards. Results include after-tax gains of 567,000 for both 1986 periods vs loss of 45,000 for prior periods on disposal of discontinued operations. Prior periods restated to reflect sale of discontinued operations.  
INFODATA SYSTEMS INC <INFD> 4TH QTR NET. Shr profit 20 cts vs loss 33 cts Net profit 376,470 vs loss 1,555,469 Revs 3,615,550 vs 2,896,000 Year Shr profit 14 cts vs loss 66 cts Net profit 382,014 vs loss 1,128,160 Revs 11.2 mln vs 11.0 mln  
JMB REALTY TRUST <JMBRS> 2ND QTR FEB 28 NET. Shr 31 cts vs 41 cts Net 436,981 vs 583,715 Six months Shr 63 cts vs 82 cts Net 901,648 vs 1,160,178  
REPUBLIC PICTURES CORP <RPICA> 4TH QTR LOSS. Oper shr loss two cts vs profit eight cts Oper net loss 77,000 vs profit 285,000 Revs 3,781,000 vs 4,721,000 Year Oper shr profit 23 cts vs profit 26 cts Oper net profit 904,00 vs profit 952,000 Revs 19.0 mln vs 15.1 mln Note: Current qtr and year figures exclude losses from discontinued operations of 303,000 dlrs, or seven cts per share and 354,000 dlrs, or nine cts per share, respectively. Net earnings for first three months of 1986 restated to reflect reduction of 148,000 dlrs resulting from increase in effvective income tax rate.  
EQUIPMENT CO OF AMERICA <ECOA> 4TH QTR NET. Oper shr seven cts vs four cts Oper net 159,000 vs 94,000 Sales 4,528,000 vs 3,683,000 Avg shrs 2,376,000 vs 2,189,000 Year Oper shr 19 cts vs 15 cts Oper net 435,000 vs 339,000 Sales 15.7 mln vs 14.4 mln NOTE: Net excludes tax credits of 17,000 dlrs vs 39,000 dlrs in quarter and 268,000 dlrs vs 294,000 dlrs in year.  
<TOROMONT INDUSTRIES LTD> YEAR NET. Oper shr 49 cts vs 47 cts Oper net 1,475,000 vs 1,474,000 Revs 85.8 mln vs 90.6 mln Note: Current shr and net exclude extraordinary loss of 3,413,000 dlrs or 1.13 dlrs shares, versus extraordinary loss of 63,000 dlrs or two cts share in prior year  
AMERON INC <AMN> 1ST QTR FEB 28 LOSS. Shr loss 11 cts vs profit six cts Net loss 515,000 vs profit 294,000 Sales 62.8 mln vs 65.4 mln  
COVINGTON TECHNOLOGIES INC <COVT> YEAR NET. Oper shr profit eight cts vs loss 20 cts Oper net profit 1,115,000 vs loss 2,729,000 Revs 83.0 mln vs 37.9 mln Note: Current year figures exclude operating loss carryforward gain of 888,000 dlrs and loss from discontinued operations of 73,000 dlrs. Prior year figures exclude loss from discontinued operations of 3.9 mln dlrs.  
NEWMONT MINING <NEM> PLANS 2-FOR-1 STOCK SPLIT. Newmont Mining Corp's board has proposed a two-for-one stock split subject to shareholder approval of an increase to 120 mln from 60 mln in authorized common shares, the proxy for the company's annual meeting said. If holdings voting at the May six meeting in Wilmington, Del., approve the increase in authorized shares the split will be paid in the form of a stock dividend on June 10 to holders of record May 20, the proxy said. Newmont said it will also ask shareholders to approve amendments to its certificate of incorporation limiting certain liabilities of its directors.  
DENPAC CORP <DNPC> YEAR LOSS. Shr loss one ct vs loss one ct Net loss 483,518 vs loss 220,582 Sales 381,841 vs 400,518 NOTE: 1985 net includes 196,868 dlr gain from forgiveness o accrued interest due to affiliates.  
<AIN LEASING CORP> 3RD QTR JAN 31 LOSS. Shr loss six cts vs profit 22 cts Net loss 133,119 vs profit 496,391 Revs 136,918 vs 737,917 Nine mths Shr loss 21 cts vs profit 15 cts Net loss 478,991 vs profit 340,210 Revs 324,011 vs 841,908  
PRIMEBANK <PMBK> SETS 10 PCT STOCK DIVIDEND. PrimeBank Federal Savings Bank said its board declared a 10 pct stock dividend to be distributed about April 15 to holders or record March 31.  
AMERICAN LOCKER GROUP INC <ALGI> 4TH QTR NET. Shr profit 23 cts vs loss six cts Net profit 319,564 vs loss 84,203 Sales 6,419,230 vs 5,583,560 Year Shr profit 1.11 dlrs vs profit 43 cts Net profit 1,582,125 vs profit 654,083 Sales 26.2 mln vs 22.6 mln NOTE: Full year 1985 includes gains of two cts per share from discontinued operations and four cts per share from disposal of assets.  
NORTH AMERICAN GROUP <NAMG> 4TH QTR OPER LOSS. Oper shr loss 12 cts vs loss 10 cts Oper net loss 474,270 vs loss 369,848 Revs 202,500 vs 111,210 Avg shrs 3,904,373 vs 3,495,579 Year Oper shr loss 28 cts vs loss 46 cts Oper net loss 1,069,550 vs loss 893,612 Revs 408,031 vs 438,933 Avg shrs 3,785,607 vs 1,944,627 NOTE: Full name is North American Group Ltd Earnings exclude losses on reorganization expenses of 33,453 dlrs, or one ct a share vs 59,520 dlrs, or two cts a sh are in the quarter and losses of 237,859 dlrs, or six cts a share vs 413,444 dlrs, or 21 cts a share for the year Earnings exclude gains on discontinued operations of 147,671, or four cts a share in the 1985 quarter and gains of 760,603 dlrs, or 20 cts a share vs 520,200 dlrs, or 27 cts a share for the year  
<OXOCO INC> YEAR LOSS. Oper shr loss 6.68 dlrs vs loss 9.95 dlrs Oper net loss 53.9 mln vs loss 69.8 mln Revs 16.5 mln vs 33.2 mln Avg shrs 8,329,492 vs 7,271,668 NOTE: 1986 excludes loss 12.9 mln for discontinued compressor operations vs loss 14.9 mln year prior. 1986 excludes gain of 98.7 mln for extinguishment of debt from company's chapter 11 filing and subsequent reorganization.  
TEECO PROPERTIES L.P. OPER INCOME DOWN. <Teeco Properties L.P.> said the partnership recorded income from operations for 1986 of 140,000 dlrs, or two cts a unit. The partnerhsip said this compared to 1985 figures of 660,000 dlrs, or 10 cts a unit. Results of operations between both years is not comparable since the partnership's principle objective is to sell or dispose of its assets and distribute proceeds to unit holders, according to the partnership. It said the number of units outstanding for both years is 6,479,516.  
BROUGHER INSURANCE GROUP INC<BIGI> 4TH QTR LOSS. Shr loss nine cts vs profit 20 cts Net loss 257,157 vs profit 414,890 Year Shr profit 54 cts vs profit 1.05 dlrs Net profit 1,295,104 vs profit 2,140,673  
TEMPLETON ENERGY INC <TMPL> 4TH QTR NET. Shr profit four cts vs loss six cts Net profit 967,000 vs loss 1,219,000 Revs 10.1 mln vs 4.5 mln Year Shr profit three cts vs loss five cts Net profit 688,000 vs 982,000 Revs 24.6 mln vs 16.3 mln NOTE: 1986 includes results of Louisiana Energy and Development Corp acquired in November 1986.  
AEL INDUSTRIES <AELNA> 4TH QTR FEB 27 NET. Shr 66 cts vs 33 cts Net 2,955,000 vs 1,563,000 Revs 26.1 mln vs 23.9 mln 12 mths Shr 74 cts vs 1.01 dlrs Net 3,321,000 vs 4,739,000 Revs 108.4 mln vs 104.9 mln NOTE: year 1987 includes charge of 818,000 dlrs, or 18 cts per share, for sale of Elisra Electronic Systems Ltd.  
METROMAIL <MTMA> PREDICTS FLAT EARNINGS. Metromail Corp said it expects flat operating profits for its 1987 fiscal year ending May 31 with last fiscal year's earnings from operations of 9,943,000 dlrs, or 1.05 dlrs a share. The company said the flat results will be due to higher than normal expenditures during the fourth quarter for expansion of its data processing capabilities. Earlier, Metromail reported fiscal 1987 third quarter earnings of 2.4 mln dlrs, or 25 cts a share, versus three mln dlrs, or 32 cts a share, the prior third quarter, and nine months net of 7.2 mln dlrs, or 76 cts a share, versus 7.8 mln dlrs, or 82 cts a share the prior nine months.  
AMERON INC <AMN> QTLY DIVIDEND. Shr 24 cts vs 24 cts prior qtr Pay May 15 Record April 24  
JOHNSON ELECTRONICS INC <JHSN> 4TH QTR LOSS. Shr loss three cts vs profit eight cts Net loss 35,000 vs profit 128,000 Revs 1,133,000 vs 1,528,000 Year Shr profit four cts vs profit 21 cts Net profit 72,000 vs profit 339,000 Revs 4,837,000 vs 4,500,000 NOTE: 1985 net income included an after tax gain of 195,000 or 12 cts per share on sale of real property.  
MORRISON INC <MORR> 3RD QTR FEB 28 NET. Shr 35 cts vs 29 cts Qtly div 12 cts vs 12 cts prior qtr Net 5,036,000 vs 4,165,000 Revs 147.6 mln vs 132.4 mln Nine mths Shr 1.12 dlrs vs one dlr Net 16.1 mln vs 14.4 mln Revs 433.4 mln vs 385 mln NOTE: Per share data reflect March 1986 five pct stock distribution. Cash dividend is payable April 30 to holders of record April 15.  
LLE ROYALTY <LRT> SETS MONTHLY PAYOUT. LL and E Royalty Trust said its monthly dividend, for January, to unitholders will be 8.37 cts per unit payable April 15 to holders of record April six. As previously reported, pending a ruling from the Internal Revenues Service, the trust's distribution may be reduced by 1.09 dlr per unit, plus interest, spread out over the life of the productive properties in which the trust has an interest. LLE said the working interest owner, to which the IRS sent a notice about a deficiency in the owner's 1983 tax return, is evaluating the necessity of escrowing some funds, which would significantly reduce royalties paid to the trust.  
IMPERIAL BANCORP <IBAN> SETS FIVE PCT DIVIDEND. Imperial Bancorp said it declared a five pct stock dividend, payable May 29 to shareholders of record April 17.  
AEC INC <AECE> SETS REGULAR PAYOUT. Qtrly div eight cts vs eight cts prior Pay April 30 Record April 8  
INLAND VACUUM <IVAC> SETS STOCK SPLIT. Inland Vacuum Inc said is board proposed a two-for-one stock split payable to shareholders of record April 30. The board also elected Phillip Frost chairman, succeeding John Durkin, who remains president and chief executive officer. Frost in early February bought 49 pct of the company, Durkin said. Stockholders at the annual meeting approved a measure to change the company's name to IVACO Industries Inc. Five new directors were also elected to the company's board. Durkin was re-elected to the board, the company said.  
JOHNSON PRODUCTS INC <JPC> 2ND QTR FEB 28 LOSS. Shr loss three cts vs loss 39 cts Net loss 115,000 vs loss 1,544,000 Rev 6.9 mln vs 7.3 mln Six months Shr profit four cts vs loss 44 cts Net profit 141,000 vs loss 1,772,000 Rev 13.9 mln vs 14.5 mln NOTE: Net includes loss from discontinued operations of 78,000 dlrs, or two cts a share, versus 597,000, or 15 cts a share in the prior 2nd qtr. Six months net includes gain from discontinued operations of 104,000 dlrs, or three cts a share, versus a loss of 588,000 dlrs, or 15 cts a share, in the prior six months.  
MAYNARD OIL CO <MOIL> YEAR LOSS. Oper shr loss 44 cts vs profit 58 cts Oper net loss 2.7 mln vs profit four mln Revs 13.3 mln vs 28.4 mln Avg shrs 6.1 mln vs seven mln NOTE: Prior year excludes extraordinary gain of 21 cts per share.  
KANSAS GAS AND ELECTRIC CO <KGE> FEBRUARY NET. Shr 13 cts vs 5 cts Net 5,568,319 vs 2,968,437 Rev 36.5 mln vs 34.0 mln 12 months Shr 1.60 dlrs vs 1.79 dlrs Net 72,865,101 vs 85,198,853 Rev 521.3 mln vs 420.3 mln NOTE: Twelve months includes the cumulative effect of a change in accounting methods for accruing unbilled revenues of 11.4 mln dlrs, or 28 cts per share.  
<JOURNEY'S END MOTEL CORP> SIX MTHS JAN 31 NET. Shr 13 cts vs 14 cts Net 1,329,000 vs 1,054,000 Revs 20.7 mln vs 11.4 mln Avg shrs 10,100,000 vs 7,500,000  
<R.L. CRAIN INC> 4TH QTR NET. Shr 80 cts vs 79 cts Net 4,212,000 vs 4,142,000 Sales 111.1 mln vs 107.1 mln  
CANADA BANKS COULD SEE PRESSURE ON BRAZIL LOANS. Canada's major banks will likely face stiff pressure to declare their Brazilian loans non-performing if, as expected, major U.S. banks take similar action after the end of their first quarter tomorrow, analysts said. American bankers said last week that slow progress in debt talks with Brazil increased the likelihood that U.S. banks would soon declare their Brazilian loans non-performing. Such action "would put a lot of pressure on the Canadian banks to do the same," Levesque, Beaubien Inc Toronto-based bank analyst Donna Pulcine told Reuters. "They (banks) like to appear to be conservative," said Pulcine, "and if a major bank puts loans on a non-performing basis and the Canadian banks don't, there is going to be a lot of pressure from shareholders as to why one bank is considering the loans non-performing and another bank is not." Wood Gundy Inc bank analyst Patricia Meredith said any willingness by a major Brazilian bank creditor such as Citicorp <CCI> to declare its Brazilian loans non-performing rather than let Brazil dictate settlement terms would provide a compelling example for other creditor banks. "In order to make that strategy work, they (Citicorp) have to have the support of the other banks," said Meredith. Bank analyst Michael Walsh at First Marathon Securities Ltd said at least one Canadian bank, which he declined to identify, "wants to put (the Brazilian loans) on a non-performing basis and is trying to encourage the others to take that position." Canadian banks are owed about seven billion Canadian dlrs by Brazil, which late last month suspended interest payments on its 68 billion U.S. dlr foreign bank debt. Banks in Canada, although allowed to wait up to 180 days before declaring loans on which they are receiving no interest as non-performing, usually move on such loans within 90 days. They could therefore delay action on the Brazilian loans until late May, which falls in Canadian banks' third quarter ending July 31. <Bank of Montreal>, Brazil's largest Canadian bank creditor, said last week it was not currently considering declaring its 1.98 billion dlrs of Brazilian loans as non-performing. "I think that is just for the benefit of the public," Walsh said of Bank of Montreal's statement. Some analysts predicted minimal earnings impact on Canadian banks from a move to declare the Brazilian loans non-performing. They said Brazil would likely resume interest payments by the banks' fiscal year-end on October 31, thus allowing banks to recoup their lost interest income. "From what Brazil has said, it is quite likely the banks will get the money," said Meredith. "My outlook at this point is optimistic that there will be no adjustment for the full-year's earnings." Meredith forecast 1987 fully diluted per share earnings of 3.80 dlrs for <Royal Bank of Canada> compared with 3.74 in 1986; 4.30 dlrs for <Bank of Montreal> compared with 3.59; 2.25 dlrs for <Canadian Imperial Bank of Commerce> compared with 2.23;  2.15 dlrs for <Bank of Nova Scotia> compared with 1.94, and 2.85 dlrs for <Toronto Dominion Bank> against 2.74. She forecast 1.90 dlrs for <National Bank of Canada> against 3.30 dlrs before a two for one stock split. Analyst Pulcine said she might lower full-year earnings estimates for the banks by between two cts and 10 cts a share, assuming a possible settlement reduced Brazil's interest costs. "If the banks didn't receive anything for the rest of the fiscal year, the impact could range from 16 cts to 70 cts a share. But I don't see that as a likely scenario," Pulcine said. Walsh at First Marathon suggested, however, that the Brazilian debt situation was so complex that "it could drag on beyond one full fiscal year." He said he foresaw having to lower his 1987 fiscal earnings forecasts for the banks. He estimated that Brazil's yearly interest payments to Canadian banks totaled about 575 mln dlrs or about 10 pct of their total 1986 pre-tax earnings.  
BULL AND BEAR GROUP INC <BNBGA> YEAR END DEC 31. Shr loss 45 cts vs profit 25 cts Net loss 641,000 vs profit 352,000 Revs 5,747,000 vs 3,038,000  
FRETTER INC <FTTR> 4TH QTR JAN 31 NET. Shr loss five cts vs profit 36 cts Net loss 784,000 vs profit 4,793,000 Revs 90 mln vs 79 mln Year Shr profit 27 cts vs profit 65 cts Net profit 4,010,000 vs profit 8,539,000 Revs 273 mln vs 214 mln  
DOME MINES LTD <DM> 4TH QTR NET. Shr profit 17 cts vs loss three cts Net profit 14,918,000 vs loss 2,732,000 Revs 74.8 mln vs 54.7 mln YEAR Shr profit 80 cts vs profit 15 cts Net profit 71.6 mln vs profit 12.2 mln Revs 293.4 mln vs 222.8 mln Note: 1986 fl-yr net includes extraordinary gain of 56.3 mln dlrs from investment sales, gain on share issue by 57 pct-owned Campbell Red Lake Mines Ltd <CRK> and provision for decline in value of marketable securities. 1985 fl-yr net includes gain of 10.1 mln dlrs. 1985 revs restated to exclude revenues from discontinued coal mining operations. Under U.S. accounting practises, Dome Mines would have reported 1986 loss of 192.9 mln dlrs or 2.17 dlrs shr vs yr-ago loss of 24.9 mln dlrs or 32 cts shr, reflecting different principles in accounting for 22 pct stake in Dome Petroleum Ltd <DMP> and 1986 oil and gas writedown.  
ENVIROSURE MANAGEMENT CORP <ENVS> 1ST QTR LOSS. Qtr ended Nov 30 Shr loss nil vs profit nil Net loss 1,321,940 vs profit 128,164 Revs 4,582,260 vs 5,115,456  
COMMERCIAL METALS CO <CMC> SETS QTLY DIVIDEND. Qtly div eight cts vs eight cts prior Pay April 24 Record April 10  
IMPERIAL <ICA> DECLARES FIRST DIV SINCE 1981. Imperial Corp of America said it declared a 10 cts dividend and four pct stock dividend on APril 25 to holders of record April 10. This is the first dividend payment since 1981, the company said.  
30-MAR-1987. 30-MAR-1987 
WOODSIDE PETROLEUM LTD <WPLA.S> 1986 YEAR. Shr nil vs same Final and yr div nil vs same Pre-tax, pre-minorities loss 3.53 mln dlrs vs profit 17.40 mln. Net attributable loss 17.14 mln dlrs vs loss 8.73 mln Sales 220.84 mln vs 173.50 mln Other income 17.77 mln vs 12.02 mln Shrs 666.67 mln vs same. NOTE - Attributable net loss is after tax 10.04 mln dlrs vs 18.59 mln, interest 82.36 mln vs 65.94 mln, depreciation 64.77 mln vs 35.74 mln and minorities 3.57 mln vs 7.55 mln but before net extraordinary loss 1.22 mln vs loss 3.91 mln.  
WOODSIDE SAYS LOSS REFLECTS LOWER OIL PRICES. Woodside Petroleum Ltd <WPLA.S> said its 1986 net loss largely reflected the drop in oil prices combined with a large tax provision. Woodside earlier reported attributable net loss rose to 17.14 mln dlrs in 1986 from 8.73 mln in 1985, although group revenue rose to 220.84 mln from 173.50 mln. It said it should have received a 1.7 mln dlr tax credit but instead made a 10.04 mln dlr tax provision. This largely related to its <Vamgas Ltd> unit, non-allowable exchange losses and tax benefits from the North-West Shelf project not recognised in the accounts. Woodside said the rise in revenue largely reflected full year sales of gas and condensate from the domestic phase of the Shelf project, against six month sales in 1985. Offsetting this was a 23 pct fall in the Cooper Basin gas and liquids revenue of its 50.6 pct-owned Vamgas unit. Since the balance date Woodside has accepted a Santos Ltd <STOS.S> takeover offer for Vamgas. Woodside said a 92.8 mln dlr capital profit on the sale would be included in the 1987 accounts. It said it lifted capital spending on fixed assets to 269.6 mln dlrs from 178.3 mln, mostly on the Shelf project.  
COMMERZBANK INCREASES DIVIDEND, PARENT NET PROFIT. Commerzbank AG <CBKG.F> said a dividend of nine marks would be proposed for ordinary shareholders on 1986 earnings after eight in 1985. It added in a statement that parent net profit rose to 288.2 mln marks in 1986 from 221.7 mln the prior year. A Commerzbank spokesman noted the figures were,however, preliminary and required approval of the bank's supervisory board which meets today. The Commerzbank statement added the distributable profit last year rose to 228.2 mln marks from 161.7 mln in 1985. With inclusion of the corporate tax allowance, qualifying domestic shareholders would receive an effective dividend of 14.06 marks per share. Total dividend payout would rise to 186.8 mln marks from 142.0 mln on 1985 earnings due to the increase in the dividend and in equity capital, it added. From the parent net profit, 60 mln marks would be placed in published reserves, unchanged from the two prior years. The shareholders' meeting take place on May 22 in Hamburg. The statement said holders of Commerzbank participation certificates in a total nominal value of 425 mln marks would receive the remaining 41.4 mln marks of the distributable profit. Aside from the basic payment of 8.25 pct of nominal value, certificate holders would receive an additional 1.5 pct. The management board of the bank would also propose two capital measures to shareholders in order to be able to react quickly to new challenges. It would ask for authorised capital of a nominal 200 mln marks for the issue of new shares and for 300 mln for the issue of warrant bonds, both for the period until April 30, 1992.  
HUTCHISON ANNOUNCES BONUS ISSUE OF NEW "B" SHARES. Hutchison Whampoa Ltd <HWHH.H> announced a bonus issue of one new "B" share of 2.5 H.K. Cents each for every two existing ordinary shares of 25 cents a share par value. A company statement said Hutchison forecast 1987 dividends for existing shares of not less than 32.5 cents a share and not less than 3.25 cents for each "B" share. Hutchison said the new issue will help increase flexibility when it is planning future expansion moves or making acquisitions without affecting the existing control structure of the group. "The move will provide long term stability to ensure continuity of overall control of the Hutchison group in that it provides Hutchison with a stable framework within which management, development and the planned growth of the group's businesses can take place," it added. Hutchison shares lost one dlr to end at 53 dlrs each today.  
AKZO REVISES 1986 PROFIT UP SLIGHTLY. Dutch chemicals group Akzo NV <AKZO.AS> said in its annual report it had revised its 1986 net profit figure up to 842 mln guilders from a provisional 840 mln guilders announced in January. The turnover figure was unchanged at 15.62 billion guilders. Akzo said it would be difficult to maintain this profit level in 1987 but it expected positive developments "in the longer term." Profits in 1985 totalled 843 mln guilders on a turnover of 18.01 billion.  
NIPPON COLUMBIA TO MAKE BONUS STOCK ISSUES. Nippon Columbia Co Ltd <NCOL.T> will make a one-for-20 bonus stock issue on July 14 to pay back remaining premiums accumulated by 4.5 mln shares issued at market price through public placement in September 1980, a spokesman said. The bonus issue will bring its outstanding capital shares to 65.02 mln from 61.92 mln as at March 31 1987. It is open to shareholders registered on May 31. Nippon Columbia's share price fell 20 to 1,260 yen on the Tokyo Stock Exchange today.  
KLEINWORT BENSON LONSDALE PLC <KBLL.L> YEAR 1986. Shr 53.05p vs 45.79p adjusted Div 8.7p making 14p vs 12p adjusted Pretax profit 78.84 mln stg vs 60.31 mln Net after tax 50.71 mln vs 40.54 mln Extraordinary credit after tax 43.19 mln vs nil Note - The extraordinary credit represents substantitally the after tax profit on sale of company's interest in M and G Group Plc. After providing for the final dividend, retained earnings were 80.07 mln vs 29.90 mln in 1985. Merchant and investment banking 81.47 mln vs 63.22 mln Bullion broking 4.75 mln vs 3.02 mln U.S. Government security dealing 2.94 mln vs loss 329,000 Investment management and unit trusts 10.62 mln vs 7.88 mln Other activities loss 3.12 mln vs profit 1.42  mln Interest on loan capital 17.82 mln vs 14.90 mln. Disclosed shareholders funds 365 mln vs 286 mln Disclosed capital resources available 626 mln vs 467 mln.  
<CGEE ALSTHOM> YEAR TO END-DECEMBER 1986. Dividend 24 francs vs 30 Consolidated net profit 115.7 mln francs vs 108.3 mln of which attributable to group 110.8 mln vs 102.5 mln Consolidated net turnover 11.16 billion francs vs 11.42 billion Parent company net profit 115.5 mln vs 95.0 mln Parent co net turnover 9.99 billion vs 9.91 billion Note - The electrical contracting company is 99.9 pct owned by the state-run Compagnie Generale d'Electricite <CGE>.  
LONDON AND SCOTTISH MARINE OIL PLC <LASL.L>. Year 1986 Div 7.0p vs 12.2p Shr 9.6p vs 31.3p Pretax profit 4.4 mln stg vs 118.0 mln Net 17.6 mln vs 37.7 mln Total turnover 183.8 mln vs 348.0 Amortisation 71.4 mln vs 86.3 Traded oil purchases 41.2 mln vs 44.5 mln Administration expenses 6.2 mln vs 8.0 mln Net interest payable 6.4 mln vs 4.8 mln Related company's credit 6.1 mln vs nil  
LASMO SET TO BENEFIT FROM FUTURE OIL PRICE RISES. London and Scottish Marine Oil Plc (Lasmo) <LASL.L> will have an advantage when oil prices rise again and it is confident this will happen early in the next decade, the company said in a statement accompanying results. Lasmo said its advantage comes from its reserves of oil and gas which at the end of 1986 stood at 210 mln barrels of oil equivalent, a group record. Reserves have increased every year since 1983 at a compounded rate of 10 pct a year. The company reported a 1986 pretax profit of 4.4 mln stg, down from 118 mln in 1985. It said falling oil prices caused the downturn. The company said it reacted swiftly to the sharp drop in oil prices which began over a year ago. Capital expenditure, which had been budgeted at over 150 mln stg, was cut to 51 mln stg net of disposals. Managers responded well to the demand for lower operating costs and this has been achieved worldwide. The company said had very few exploration wells committed for 1987 and therefore retains maximum flexibility in its exploration program. Even without further success, the existing fields and recent discoveries will contribute significantly to profit and cash flow for some years to come, it said. Lasmo shares were down 2p at 251 after the announcement.  
SUMITOMO CHEMICAL CO LTD <SUCH.T> YEAR TO DEC 31. Group shr 4.91 yen vs 6.59 Net 7.72 billion vs 10.38 billion Current 16.81 billion vs 20.84 billion Operating 45.56 billion vs 52.02 billion Sales 734.50 billion vs 996.15 billion NOTE - Company forecast for current year is group net 14 billion, current 30 billion and sales 740 billion based on rationalisation efforts and expected market price increases in agricultural chemicals and petrochemical products following the recovery in world oil prices.  
MANNESMANN SEES DIFFICULT YEAR FOR CAPITAL GOODS. Mannesmann AG <MMWG.F> expects a difficult year for the capital goods industry in 1987, chief executive Werner Dieter told a news conference. Dieter said West German producers would see a downturn in foreign business because of lower energy prices and the higher mark, as well as a deterioration of the economies of customer nations. Domestic business was also declining and orders for West German engineering goods have been falling since July 1986, Dieter said. Mannesmann's profit fell by an undisclosed amount in 1986. Dieter said Mannesmann's pipe activities would suffer a set- back, although measures to cut costs, which were started last year, were now having an effect. Dieter noted, however, that pipes and related products accounted for less than 30 pct of Mannesmann's turnover. The company saw good chances in the automation sector, which Dieter said had become one of Mannesmann's "strategic aims." He said the company's drive to combine activities in mechanical and electronic engineering was a particular "plus point" for Mannesmann. Mannesmann, which yesterday announced it had agreed to take a majority stake in the Fichtel und Sachs AG car parts group for an undisclosed sum, saw third party group turnover fall nine pct in 1986 to 16.60 billion marks. Its world group net profit in 1985 was 255.9 mln marks. It has blamed the fall in 1986 profits on the weaker dollar and lack of demand for steel pipe. Dieter said there were signs that prices for steel pipe were bottoming out and would slowly start to rise, but he added the company would continue to cut personnel in this sector this year.  
BRITISH CALEDONIAN GROUP ANNOUNCES BIG LOSSES. <British Caledonian Group>, Britain's second largest airline, has announced a 19.3 mln stg pretax loss for the financial year ending last October, compared with a record pre-tax profit of 21.7 mln stg in 1985, chairman Sir Adam Thomson told reporters. A decline in U.S. Transatlantic traffic following terrorist attacks in Europe, the U.S. Bombing of the Libya, the Chernobyl disaster and a slump in the oil industry which affected Middle East traffic were the main causes of the loss, Thomson said. He said the poor results were caused by "a range of exceptional circumstances wholly outside our direct control" and predicted a return to profitability this year. Last year, the airline was forced to axe 1,000 jobs, sell some of its assets and cut the number of its flights across the Atlantic and to the Middle East following the fall in business .  
ESSO MALAYSIA REPORTS HIGHER PROFIT IN 1986. Esso Malaysia Bhd, a unit of Exxon Corp of the U.S., Reported net profit of 70 mln ringgit from its petroleum and ammonia operations in 1986 compared with 48.7 mln in 1985. Chairman Gerald F Cox said the improved performance was mainly due to product prices falling more slowly than crude prices during the year. He added that total sales volume increased as a result of higher offtake by affiliated companies, while inland market sales were maintained at around the previous year's levels. But growth prospects in 1987 remained weak and 1986 results are unlikely to be repeated in the current financial year.  
JEWELMASTERS <JEM> SEES NET BELOW ESTIMATES. Jewelmasters Inc said it expects to report net income for the year ended January 31 20 to 25 pct below analysts' estimates of 1,750,000 dlrs or 95 cts per share. Jewelmasters sales sales for the year just ended were about 52.5 mln dlrs. In the prior year it earned 1,650,000 dlrs on sales of 45.1 mln dlrs. Jewelmasters said net income for the year was hurt by disappointing sales in December and January, a high level of advertising spending in the fourth quarter, higher than expected opening expenses for 34 additional units and an adjustment to inventory associated with a shift to a more comprehensive inventory system. Jewelmasters said it expects to report audited results for the fourth quarter and year in about three weeks.  
J.C. PENNEY DECLARES TWO FOR ONE SPLIT, RAISES QUARTERLY.  J.C. PENNEY DECLARES TWO FOR ONE SPLIT, RAISES QUARTERLY  
PENNEY <JCP> SETS STOCK SPLIT, RAISES QUARTERLY. J.C. Penney Co Inc said its board declared a two-for-one stock split and raised the quarterly dividend 12 cts per share on a presplit basis to 74 cts. Both are payable May One to holders of record April 10.  
HILLENBRAND INDUSTRIES INC <HB> 1ST QTR FEB 28. Shr 31 cts vs 28 cts Net 11.9 mln vs 10.9 mln Revs 167.2 mln vs 154.0 mln  
<TRANS CANADA GLASS LTD> 4TH QTR LOSS. Shr loss 11 cts vs loss eight cts Net loss 500,000 vs loss 500,000 Sales 47.4 mln vs 37.5 mln Year Shr profit 70 cts vs profit 89 cts Net profit 4.4 mln vs profit 5.3 mln Sales 195.5 mln vs 148.3 mln  
GEOTHERMAL RESOURCES INTERNATIONAL INC <GEO>. Year Oper shr 1.23 dlrs vs 1.85 dlrs Oper shr diluted 1.23 dlrs vs 1.79 dlrs Oper net 6,799,000 vs 9,321,000 Revs 7,474,000 vs 12.4 mln Avg shrs 4,503,000 vs 4,350,000 Avg shrs diluted 4,508,000 vs 5,206,000 NOTE: Net excludes gains from discontinued operations of 386,000 dlrs vs 903,000 dlrs. 1986 year net excludes gain 1,910,000 dlrs from sale of discontinued operations. Net includes tax credits of 9,450,000 dlrs vs 11.9 mln dlrs.  
FIRST CITY INDUSTRIES INC <FCY> 4TH QTR NET. Opoer shr profit 17 cts vs loss 96 cts Oper net profit 2,293,000 vs loss 7,110,000 Sales 116.0 mln vs 108.3 mln Year Oper shr loss 2.03 dlrs vs loss 2.12 dlrs Oper net loss 13.8 mln vs loss 11.6 mln Sales 454.0 mln vs 446.4 mln NOTE: Net excludes gains from discontinued operations of 10.2 mln dlrs vs 1,985,000 dlrs in quarter and 4,262,000 dlrs vs 1,320,000 dlrs in year.  
MAGELLAN PETROLEUM CORP <MPET> 3RD QTR JAN 31. Shr loss nil vs profit nil Net loss 90,656 vs profit 892 Revs 2,194,242 vs 2,481,784 Avg shrs 19.5 mln vs 16.1 mln Nine mths Shr profit nil vs loss one ct Net profit 42,824 vs loss 149,150 Revs 6,364,992 vs 6,503,811 Avg shrs 19.5 mln vs 16.1 mln NOTE: Net includes tax credits of 98,338 dlrs vs 81,492 dlrs in quartrer and 193,193 dlrs vs 226,560 dlrs in nine mths.  
TERRA MINES LTD <TMEXF> YEAR LOSS. Shr loss 89 cts vs loss 17 cts Net loss 13.9 mln vs loss 1,996,000 Revs 204,000 vs 2,087,000 Note: 1986 includes writedown of 12.5 mln dlrs for the costs of mineral properties and deferred exploration and development Bullmoose Lake in the Northwest Territories.  
MERRILL CORP <MRLL> 4TH QTR JAN 31 NET. Shr 17 cts vs 17 cts Net 777,000 vs 595,000 Revs 12.9 mln vs 11.7 mln Year Shr 68 cts vs 48 cts Net 2,957,000 vs 1,614,000 Revs 49.4 mln vs 38.6 mln Avg shrs 4,344,204 vs 3,337,284  
D.O.C. OPTICS CORP <DOCO> 4TH QTR LOSS. Shr loss 11 cts vs profit 12 cts Net loss 286,817 vs profit 292,014 Revs 9,972,379 vs 9,413,304 Year Shr profit 63 cts vs profit 57 cts Net profit 1,547,893 vs profit 1,481,703 Revs 43.9 mln vs 41.0 mln Avg shrs 2,474,820 vs 2,617,768  
SOUTHERN HOSPITALITY CORP <SHOS> 3RD QTR FEB 28. Shr loss 23 cts vs loss 11 cts Net loss 1,128,412 vs loss 548,054 Sales 9,827,784 vs 12.1 mln Nine mths Shr loss 19 cts vs profit 11 cts Net loss 926,924 vs profit 527,004 Sales 32.3 mln vs 37.5 mln  
ELDER-BEERMAN STORES CORP <ELDR> 4TH QTR FEB ONE. Oper shr 89 cts vs 1.31 dlrs Oper net 3,345,000 vs 4,885,000 Sales 126.8 mln vs 120.1 mln Year Oper shr 1.67 dlrs vs 2.15 dlrs Oper net 6,299,000 vs 8,013,000 Sales 380.9 mln vs 352.1 mln NOTE: Share adjusted for five pct stock dividend. Prior year net both periods excludes gain 1,998,000 dlrs from reversion of overfunded pension plans. Year net includes pretax LIFO inventory charge 600,000 dlrs vs credit 900,000 dlrs.*Tax rate 40.6 pct vs 32.0 pct due to impact of Tax Reform Act of 1986. Bad debt writeoffs for year up one mln dlrs pretax from the year before.  
HECK'S INC <HEX> 4TH QTR JAN THREE NET. Shr losses not given Net loss 7,800,000 vs loss 5,400,000 Sales 181.2 mln vs 182.0 mln Year Shr losses not given Net loss 17.8 mln vs loss 4,900,000 Sales 566.3 mln vs 523.3 mln NOTE: Company operating in Chapter 11 bankruptcy. 1986 year net includes four mln dlr LIFO charge and 3,400,000 dlr credit from pension plan termination.  
CAPITAL BANCORP <CAPB> SEES GAIN ON UNIT SALE. Capitol Bancorp said it has sold its 80 pct interest in CAP Mortgage Co Inc for 3.1 mln dlrs, adding this is expected to result in an after tax gain of about 900,000 dlrs to be reported in the first quarter. Capitol Bancorp said the CAP Mortgage interest was sold to Michael M. Bronstein, president of CAP Mortgage, and Robert Fox, president of Fox Properties Inc. Bronstein already held the other 20 pct of CAP Mortgage's stock.  
4G DATA SYSTEMS <GGGG> 3RD QTR NET. qtr ends Jan 31 Shr nil vs nil Net 2,213 vs 16,288 Revs 1,418,019 vs 795,522 Avg shrs 6,650,000 vs 4,150,000 Nine mths Shr two cts vs three cts Net 118,984 vs 103,384 Revs 4,066,605 vs 2,741,241 Avg shrs 6,650,000 vs 3,969,444  
<NIKI-LU INDUSTRIES INC> YEAR NET. Oper shr profit 18 cts vs loss 38 cts Oper net profit 577,000 vs loss 1,147,000 Revs 16.3 mln vs 19.8 mln Avg shrs 3,227,625 vs 3,057,206 NOTE: 1986 net excludes 485,000 dlr tax credit.  
COLOROCS CORP <CLRX> YEAR LOSS. Shr loss 28 cts vs loss 29 cts Net loss 2,086,477 vs loss 1,466,907 Revs 218,864 vs 60,000 Avg shrs 7,510,781 vs 4,990,168  
ROCKY MOUNT UNDERGARMENT <RMUC> 4TH QTR LOSS. Shr loss 53 cts vs loss 32 cts Net loss 1,548,000 vs loss 929,000 Revs 9,362,000 vs 11.3 mln 12 mths Shr loss 82 cts vs profit 17 cts Net loss 2,408,000 vs profit 452,000 Revs 40.9 mln vs 39.5 mln NOTE: full name of company is Rocky Mount Undergarment Co Inc.  
DYR LIQUIDATING <DYR> SETS LIQUIDATING PAYOUT. DYR Liquidating Corp, formerly Dyneer Corp, said its board declared a third liquidating dividend of one dlr per share payable to shareholders of record on April 14 and said it will file a certificate of dissolution on that date. The company said shareholders of record on that date will acquire beneficial interests in the liquidating trust that will be formed to hold all of the company's assets. It said it has asked the American Stock Exchange to suspend trading in its common stock at the close on April 6 to ensure settlement of all traded by April 14. DYR said it expects its stock to be withdrawn from registration under the Securities Exchange Act of 1934 shortly after April 14. DYR said the pay date for the dividend will be April 28.  
NETWORK SECURITY CORP <NTWK> YEAR NET. Shr 1.24 dlrs vs 19 cts Shr diluted 1.11 dlrs vs 19 cts Net 11.9 mln vs 1,830,000 Revs 79.3 mln vs 46.1 mln NOTE: 1986 net includes pretax charge 8,300,000 dlrs from increases and reserves and writeoffs of low-yielding assets and pretax gain 20.8 mln dlrs from sale of Multi-Family subsidiary. Another 3,800,000 dlrs of gain from the Multi-Family sale will be recognized in 1987 if Multi-Family meets targeted operating results.  
CRI INSURED II <CII> ESTIMATES DIVIDENDS. CRI Insured Mortgage Investments II Inc said it expects to distribute about 1.55 to 1.65 dlrs per share from operations for all of 1987 and about 1.68 to 1.75 dlrs including the proceeds of the gain from the sale of the Brighton Meadows mortgage through January 31. The company today paid a dividend of 1.1646 dlrs per share. Its first two quarterly payments, in September and December, were 42.5 cts each. CRI said it has not yet declared a distribution on the Park Meadows loan disposition.  
<NEW HARDING GROUP INC> 1ST QTR JAN 31 NET. Shr 19 cts Net 653,000 Revs 45.6 mln Note: Prior results not given due to November, 1986 acquisition of 56 pct stake in Continuous Colour Coat Ltd  
SUN CITY INDUSTRIES <SNI> SEES HIGHER NET. Sun City Industries Inc said preliminary unaudited results of ongoing operations for the fiscal year ended January 31, 1987 are expected to rise over 580 pct to 700,000 dlrs or 70 cts per share from the 125,313 dlrs or 12 cts reported last year. Total net income is expected to reach 2.4 mln dlrs, which includes 1.7 mln dlrs of net income realized from sale of property. The combination will result in record earnings of 2.40 dlrs a share, the wholesale distributor and processor of eggs said.  
ARVIN INDUSTRIES SEES FLAT 1ST QTR PER SHARE NET COMPARED WITH 59 CTS LAST YEAR.  ARVIN INDUSTRIES SEES FLAT 1ST QTR PER SHARE NET COMPARED WITH 59 CTS LAST YEAR  
ROCKY MOUNT <RMUC> EXPECTS PROFIT IN FIRST QTR. Hal Weiss, chairman, president and chief executive officer, of Rocky Mount Undergarment Co Inc, said he expects the company to show a profit for the first quarter fiscal 1987. Weiss said sales for 1987 have been strong following a net loss of 1,548,000 dlrs, or 53 cts a share, for the fourth quarter of fiscal 1986. The company reported a net loss for the year of 2,408,000 dlrs, or 82 cts a share. Rocky Mount recorded net income of 248,000 dlrs, or eight cts per share, for the first quarter of fiscal 1986. Weiss attributed the poor year to problems involving management, manufacturing operations, financial condition and credibility among its suppliers. Weiss predicted the pattern of quarterly lossses which characterized 1986 will be reversed and 1987 will see the company return to profitability.  
NEW HARDING GROUP SETS FIRST PAYOUT SINCE 1978. <New Harding Group Inc>, formerly Harding Carpets Ltd, said it declared its first dividend since fiscal 1978 of 10 cts per subordinate voting share and multiple voting share, pay April 15, record April 8. The company said the dividend establishes a new policy for the payment of quarterly dividends. New Harding earlier reported profit of 653,000 dlrs or 19 cts a share for first quarter ended January 31. It said prior results were not comparable due to the company's November, 1986 acquisition of a 57 pct stake in Continuous Colour Coat Ltd.  
CHARTER POWER SYSTEMS INC <CHP> 4TH QTR JAN 31. Shr profit 18 cts vs loss 21 cts Net profit 766,000 vs loss 510,000 Sales 32.4 mln vs 25.5 mln Year Shr profit 71 cts vs loss 23 cts Net profit 2,337,000 vs loss 747,000 Sales 132.1 mln vs 119.6 mln NOTE: Prior year results pro forma for acquisition of C and D Power Systems divisions of Allied-Signal Inc <ALD>.  
RENAULT <RENA.PA> YR ENDED DEC 31 1986. Consolidated net loss 5.54 billion francs vs loss 10.93 billion. Consolidated net turnover 131.06 billion francs vs 122.14 billion. Consolidated debt 54.3 billion francs vs 61.9 billion. Net loss car making 4.14 billion francs vs loss 10.99 billion. Net loss industrial vehicles 990 mln vs loss 1.54 billion. Note - The company said the consolidated net loss was after costs and provisions for restructuring of 3.90 billion francs, which includes exceptional items arising from the planned sale of its stake in American Motors Corp <AMO> to Chrysler Corp <C>. Full company name is Regie Nationale des Usines Renault.  
PIZZA INN INC <PZA> 4TH QTR LOSS. Shr loss 48 cts vs loss 35 cts Net loss 1,587,000 vs loss 1,063,000 Revs 45.3 mln vs 50.9 mln Avg shrs 3,322,032 vs 3,054,457 Year Shr profit three cts vs loss 19 cts Net profit 112,000 vs loss 587,000 Revs 211.2 mln vs 199.3 mln Avg shrs 3,220,163 vs 3,038,361 NOTE: Net includes tax credits 1,411,000 dlrs vs 929,000 dlrs in quarter and tax provision 689,000 dlrs vs credit 1,288,000 dlrs in year. 1986 year revenues include 18.7 mln dlrs from gain on sale of Quality Sausage Co Inc. 1986 net includes costs of 900,000 dlrs in quarter and 1,200,000 dlrs in year from proposed merger.  
ARVIN <ARV> SES FLAT 1ST QTR RESULTS. Arvin Industries Inc said higher interest costs from borrowings to make acquisitions will produce earnings flat with last year's 59 cts a share results. Arvin said it might earn 57 cts to 60 cts a share in the quarter. These results also reflect the seasonally low sales pattern of automotive replacement parts in that period. Arvin forecast about 85 cts a share net in the second quarter compared with 68 cts in last year's period. The company said revenues for full year 1987 it will exceed 1.4 billion dlrs, net earnings will increase more than 30 pct, while per share earnings should increase 12 to 18 pct. Arvin's 1986 revenues were 995.6 mln, net reached 41.2 mln and earnings per share 2.46 dlrs. It based these forecasts due to the addition of Schrader Automotive Inc and Maremont Corp, both acquired last year. Chairman James Baker said 1987 quarterly comparisons will not conform to historical patterns for the year because the acquisitions of Schrader and Maremond occurred in different quarters. He said Arvin will complete the purchase of Systems Research Laboratories in the second quarter of 1987. This will also increase revenues.  
CORTRONIC CORP <CTRN> YEAR LOSS. Shr loss 23 cts vs loss 15 cts Net loss 1,121,664 vs loss 640,862 Sales 37,485 vs nil NOTE: Company in development stage.  
WATSO INC <WSOA> SETS REGULAR PAYOUTS. Qtrly Class A div five cts vs five cts prior Qtrly Class B div four cts vs four cts prior Pay May 29 Record April 30 NOTE: company changed date for its annual shareholders' meeting to June 24 from June 15 due to a scheduling conflict.  
EATERIES INC <EATS> YEAR NET. Shr profit 10 cts vs loss two cts Net profit 140,332 vs loss 21,290 Revs 4,202,305 vs 1,692,976 Avg shrs 1,400,945 vs 1,106,500  
CPL REAL ESTATE <CNTRS> CUTS REGULAR PAYOUT. Qtrly div 26 cts vs 27 cts prior Payable April 27 Record April 10 NOTE: full name of company is cpl real estate trust investment.  
NATIONAL BANCSHARES <NBCT> TO HAVE GAIN ON SALE. National Bancshares Corp of Texas said it has completed the previously-announced sale of 90,000 credit card accounts of to Lomas and Nettleton Financial Corp <LNF> for 45.6 mln dlrs, resulting in a gain of 5,800,000 dlrs.  
CPL REAL ESTATE <CNTRS> SEES LOWER DIVIDENDS. CPL Real Estate Trust Investment said its regular quarterly dividend distribution will be lower than its present 26 cts per share, and could be significantly lower starting with the third quarter of 1987. The company, which lowered the payout from 27 cts to 26 cts this current quarter, said it did not know how low the payout would go. The company said the reason for the cutbacks was because it would not be purchasing a property it had anticipated, and alternative investments will produce significantly lower yields than anticipated.  
AMERICAN RECREATION CENTERS INC <AMRC> 3RD QTR. Shr 13 cts vs 17 cts Net 553,000 vs 728,000 Revs 6.9 mln vs 7.5 mln Nine months Shr 17 cts vs 18 cts Net 732,000 vs 776,000 Revs 18.5 mln vs 18.2 mln NOTE:Share earnings reflect 5-for-4 stock split effective July 31.  
PIER 1 IMPORTS <PIR> AMENDING DATES ON SPLIT. Pier 1 Imports Inc said it amended its record and distribution dates for its previously- announced three-for two common and 25 cts preferred stock split. The split common and 25 cts preferred shares will be distributed on July 2, 1987, to shareholders of record June 24, 1987. The stock split requires shareholder approval of an increase in authorized shares of common stock to 100 mln from 25 mln and an increase of authorized shares of preferred stock to five mln from one mln, the company said. The change in the dates was based on the company's desire to have the additional common and 25 cts preferred shares trade for the shortest practical period of time on a "when issued" basis following a favorable shareholder vote at the annual meeting June 24, it said. The previously announced record and distribution dates were May 13, 1987, and June 29, 1987, respectively, the company said.  
INTERNATIONAL BIOTECHNOLOGIES <IBIO> 4TH QTR. Shr loss 34 cts vs loss 14 cts Net loss 798,000 vs loss 213,000 Revs 1.5 mln vs 1.5 mln Year Shr loss 61 cts vs loss 2.08 dlrs Net loss 1.4 mln vs 1.0 mln Revs 6.8 mln vs 6.0 mln NOTE:1986 net loss includes non-recurring charges of 132,000 dlrs and 270,000 dlrs. Full name is INternational Biotechnologies Inc.  
SYMS CORP <SYM> 4TH QTR. Shr 43 cts vs 25 cts Net 7.6 mln vs 4.4 mln Revs 72.0 mln vs 66.9 mln Year Shr 84 cts vs 72 cts Net 14.8 mln vs 12.7 mln Revs 223.1 mln vs 215.2 mln NOTE: 1986 4th qtr inludes gain of 2.6 mln dlrs on sale of real estate.  
NPS TECHNOLOGIES GROUP <NPSGU> 4TH QTR. Shr N.A. vs N.A. Net 46,000 vs 106,000 Revs 19.8 mln vs 19.0 mln YEar Shr 26 cts vs 26 cts NEt 1.3 mln vs 1.3 mln Revs 82.1 mln vs 105.3 mln NOTE:1986 net includes 870,000 dlrs charge. 1985 net includes 788,000 credit. No share amounts provided for 4th qtr as NPS completed initial offering in August.  
FREEPORT-MCMORAN RESOURCE LP <FRP> QTLY PAYOUT. Qtly cash distribution 60 cts vs 60 cts prior Pay May 15 Record April 30 Note: Full name is Freeport-McMoRan Resources Partners LP.  
DATA MEASUREMENT CORP <DMCB> 4TH QTR. Shr 83 cts vs 60 cts Net 516,063 vs 328,468 Revs 8.3 mln vs 5.7 mln NOTE:Shrs reflect 3-for-2 stock split.  
PUBCO CORP <PUBO> YEAR NET. Oper shr 12 cts vs nine cts Oper net 4,027,852 vs 3,200,837 Revs 100.2 mln vs 46.0 mln Note: Oper net excludes tax credits of 517,916 vs 198,000 Current year results include proceeds from termination of a pension plan.  
<MONTREAL TRUSTCO INC> YEAR NET. Shr 94 cts vs 75 cts Net 27.0 mln vs 18.4 mln Revs 631.6 mln vs 409.5 mln Avg shrs 27.1 mln vs 22.6 mln  
CANADA'S AIRLINE PROFITS SEEN HIGHER. Canada's airline industry, shaken up by a recent merger that creates a powerful new competitor for government-owned Air Canada, has begun its first serious drive for profitability in 50 years, industry analysts said. "Now we've got a company that can compete with Air Canada," said Thomas Bradley of Richardson Greenshields of Canada Ltd. "Clearly, it can go head-to-head in any market." The new airline, which arose from the 300-mln-Canadian-dlr takeover of Canadian Pacific Air Lines Ltd by the small but cash-rich Pacific Western Airlines Corp, was launched last week as Canadian Airlines International Ltd. Canadian Airlines will have 35-40 pct of the 6-billion-Canadian-dlr domestic market, against Air Canada's 50-55 pct. Wardair International Ltd is third with about nine pct. Analysts believe Pacific Western's aggressive and cost-conscious chairman Rhys Eyton will develop the true potential of the former CP Air, which floundered for four decades inside the bureaucracy of conglomerate Canadian Pacific Ltd. They said CP Air's management style had been not much different from that of Air Canada, formed 50 years ago, because neither airline was held accountable to its owners. "Not that long ago, maybe even just six months ago, these two airlines were totally fiscally irresponsible. Neither seemed that concerned about the bottom line," said Bradley. "But with CP Air being run by Eyton, it will be very conscious of profitability and shareholder return. And Air Canada is on the verge of going that way," he said. CP Air, always fighting for market share rather than profits, was "a perennial money-loser," analyst Wilfred Hahn of Bache Securities Inc said in a recent report. Prior to its takeover in December, it had accumulated long-term debt of 600 mln Canadian dlrs. From 1981 to 1985, its losses totaled 87 mln Canadian dlrs. Air Canada, widely expected to be privatized later this year in a public share offering, lost 14.8 mln Canadian dlrs on revenues of 2.72 billion dlrs in 1985. It has a debt of more than 2 billion dlrs. Although only a minority interest is likely to be sold to the public, the prospect of privatization at a time of increased competition is forcing Air Canada to pay more attention to finances, analysts said. It recently disclosed that it expects to report a profit "in excess of 35 mln to 40 mln dlrs" for 1986. However, this profit recovery was due less to management skill than the fact that all Canadian airlines had a good year in 1986, analysts said. Tourists came to Canada in record numbers last year, attracted by the relatively weak Canadian dollar and Expo 86 in Vancouver, which alone had more than 22 mln visitors. For the next few years, most analysts see three-six pct air traffic growth, and they expect profits will come from cost-cutting and careful spending. Peter Friend of Walywn Stodgell Cochran Murray Ltd said institutional buyers will be eager to add Air Canada to their portfolios as a blue-chip investment, but warned that new competition makes profit growth less certain. "The airline with something to lose will be Air Canada. At one time, it had a fixed system which was theirs and nobody else's," Friend said. Many analysts recommend that investors buy and hold airline shares for at least a year. Analysts said Air Canada's immediate concern ahead of a public stock offering will be unloading unprofitable air routes without setting off a political storm. It also will be faced with an expensive but necessary updating of its aging fleet of 111 aircraft. Wardair, preferring strong medicine now instead of later, already has embarked on a one-billion-Canadian-dlr purchase of a dozen aircraft from Europe's Airbus Industrie. Canadian Airlines, which has 81 aircraft, last week ordered six commuter planes from British Aerospace and said it would soon buy as many as six wide-bodied aircraft from Airbus or the Boeing Co. Analysts said Canadian Airlines, with its newer fleet, needs to make fewer replacements and can afford these without hurting profits. Steven Garmaise of Wood Gundy Inc expects Canadian Airlines' profit in 1988 will more than double last year's 29.8 mln Canadian dlrs by Pacific Western.  
ILLINOIS POWER CO<IPC> TWO MONTHS FEBRUARY NET. Shr 65 cts vs 67 cts Net 49,517,000 vs 47,732,000 Revs 229.2 mln vs 245.7 mln Avg shrs 65,994,142 vs 63,293,867 NOTE: Per-share results reflect payment of preferred dividend requirements  
AVERY <AVRY> SEES QTR, YEAR LOSS. Avery Inc said the company will not show a profit in the next quarter and will probably not show a profit in 1987. Speaking at the annual shareholders meeting, chairman Nelson Peltz declined to estimate when the company would become profitable. Peltz said Uniroyal Chemical Co, acquired last year, would increase Avery's operating earnings but that associated acquisition costs would prevent Avery from posting net profits for some time. At the meeting, stockholders approved an increase in the authorized number of common shares to 200 mln from 15 mln. In the fiscal year ended May 30, 1986, Avery reported a loss of 489,000 dlrs. The company has changed its fiscal year to end Sept 30. The increase in common shares would cover, among other things, the exercise of Triangle Industries Inc's <TRI> and Drexel Burnham Lambert Inc's warrants issued in relation to Avery's 710 mln dlr acquisition of Uniroyal Chemical late last year.  
BIG BEAR INC <BGBR> 2ND QTR FEB 28 NET. Shr 46 cts vs 31 cts Net 3,608,000 vs 2,448,000 Revs 223.5 mln vs 218.2 mln Six mths Shr 87 cts vs 64 cts Net 6,788,000 vs 4,992,000 Revs 441.5 mln vs 439.5 mln  
NORTHVIEW CORP <NOVC> YEAR NET. Shr 30 cts vs 51 cts Net 966,000 vs 1,470,000 Revs 39.8 mln vs 41.3 mln  
PENNZOIL SEES LOWER 1ST QTR NET BEFORE UNUSUAL ITEM AGAINST YEAR AGO LOSS 49 CTS.  PENNZOIL SEES LOWER 1ST QTR NET BEFORE UNUSUAL ITEM AGAINST YEAR AGO LOSS 49 CTS  
SCEPTRE RESOURCES LTD <SRL> YEAR NET. Shr seven cts vs two cts Net 5,500,000 vs 4,300,000 Revs 69.1 mln vs 115.3 mln Note: Shr after preferred divs.  
PENNZOIL <PZL> SEES LOWER FIRST QTR. Pennzoil Co Chairman J. Hugh Liedtke told a meeting of analysts that the company expects its first quarter net to be down considerably, before an unusual item, from the loss of 49 cts a share reported a year ago. Liedtke did not say how large the unusual item would be. "We're still closing our books on the first quarter, so I don't have final numbers for you," he said.  
ELCOR <ELK> UPS QTLY DIV, SETS STOCK SPLIT. Elcor Corp said it raised its quarterly common stock dividend to 11 cts a share from nine cts and declared a two-for-one common stock split. The company said the increased dividend will be paid on May 13 to shareholders of record April 16. The stock split, Elcor said, will paid in the form of a 100 pct stock dividend on May 28 to shareholders of record may 14.  
I.R.E. FINANCIAL CORP <IF> YEAR. Shr 94 cts vs 77 cts Net 2.1 mln vs 1.7 mln Revs 7.8 mln vs 8.8 mln NOTE:Per share data reflects elimination of 500,000 shares owned by 50 pct owned subsidiary and reflect one-for-three reverse stock split effective march 5, 1986.  
ENERGY VENTURES CINC <ENGY> 4TH QTR NET. Net profit 510,000 vs loss 5,700,000 Revs 875,000 vs 4,100,000 Year Net profit 871,000 vs loss 4,100,000 Revs 4,700,000 vs 14.1 mln  
ELSINORE CORP <ELX> YEAR LOSS. Shr loss 4.05 dlrs vs loss 2.47 dlrs Net loss 39,598,000 vs loss 24,152,000 Revs 96.0 mln vs 87.9 mln Note: Current year figures include 7.2 mln dlr provision for anticipated loss on note receivable, 25.4 mln dlr writedown on asset carrying value and 8.5 mln dlr provision for future operating losses at Elsinore Shore Associates. Prior year figures include 10.5 mln dlr provision for future losses at Elsinore Shore Associates.  
GRUNTAL FINANCIAL <GRU> 2ND QTR FEB 27 NET. Shr primary 33 cts vs 33 cts Shr diluted 27 cts vs 32 cts Net 3,669,000 vs 3,556,000 Revs 58.2 mln vs 56.6 mln Avg shrs primary 11.2 mln vs 11.1 mln Avg shrs diluted 15.1 mln vs 11.1 mln Six mths Shr primary 43 cts vs 46 cts Shr diluted 37 cts vs 45 cts Net 4,711,000 vs 4,879,000 Revs 101.9 mln vs 95.7 mln Avg shrs primary 11.2 mln vs 10.9 mln Avg shrs diluted 15.1 mln vs 10.9 mln  
CENTURI INC <CENT> YEAR NET. Oper shr 13 cts vs six cts Oper net 2,124,013 vs 909,158 Revs 168.6 mln vs 157.6 mln NOTE: 1986 and 1985 years exclude loss discontinued operations 6,974,554 dlrs, and 268,000 dlrs, respectively.  
NODAWAY VALLEY CO <NVCO> 4TH QTR JAN 31 NET. Shr 16 cts vs 23 cts Net 385,747 vs 549,928 Revs 10.5 mln vs 9,037,596 Year Shr 40 cts vs 58 cts Net 946,024 vs 1,352,709 Revs 36.2 mln vs 30.6 mln  
<LIGHTNING MINERALS INC> YEAR LOSS. Shr loss four cts vs loss six cts Net loss 92,917 vs loss 104,038 Revs 21.9 mln vs 5,091,000  
BOBBIE BROOKS INC <BBKS> YEAR NET. Oper shr profit 41 cts vs loss 1.13 dlrs Oper net profit 3,093,000 vs loss 7,000,000 Revs 35.9 mln vs 31.1 mln Avg shrs 7,508,096 vs 6,207,723 NOTE: Current year excludes gain of about 2.5 mln dlrs or 33 cts/shr from benefit of tax loss carryforward and includes pretax gain of about 1.2 mln dlrs from sale of export quota rights. Year-ago includes charge of five mln dlrs from discontinued operations. 1985 is for eight mths ended Dec 31, 1985. In that year, company changed to calendar year from previous fiscal year ended April 27, 1985.  
CELLULAR COMMUNICATIONS INC <COMM> NINE MTHS. Dec 31 end Shr loss 1.26 dlrs vs loss six cts Net loss 11.4 mln vs loss 400,000 Revs 12.5 mln vs 4,049,000 NOTEL Company changed fiscal year to December 31 end. Prior year net includes gain 4,454,031 dlrs from sale of minority interests in Connecticut partnerships.  
WILSON BROTHERS 4TH QTR. Shr loss 30 cts vs loss 31 cts Net loss 1.0 mln vs loss 1.0 mln Revs 2.3 mln vs 1.7 mln Year Shr profit 0 10 cts vs loss 45 cts Net profit 508,000 vs loss 1.5 mln Revs 5.8 mln vs 6.7 mln NOTE:1986 year and qtr net includes loss of 37,000 dlrs and 538,000 dlrs, respectively from from discontinued operations. 1986 net includes 1.7 mln dlr credit. 1985 year and qtr includes gain of 1.0 mln dlrs and loss of 190,000, respectively from discontinued operations.  
(POLORON PRODUCTS INC) YEAR OPER NET. Oper shr 26 cts vs 16 cts Oper net 948,000 vs 480,000 Revs 25.4 mln vs 19.9 mln NOTE: Excludes loss of 6.7 mln dlrs or 1.82 dlrs/shr vs gain of 453,000 dlrs or 15 cts from discontinued operations. 1985 also excludes extraordinary gain equal to 34 cts/shr. 1986 ended Dec 31 and 1985 ended Nov 30. In 1986, company changed fiscal year end to Dec 31.  
GENEX CORP <GNEX> YEAR LOSS. Shr loss 94 cts vs loss 1.25 dlrs Net loss 12.1 mln vs loss 15.9 mln Revs 3,307,000 vs 16.2 mln NOTE: Current year includes writedown of 8.5 mln dlrs.  
BIC CORP <BIC> SETS QUARTERLY. Qtly div 15 cts vs 15 cts prior Pay April 30 Record April 14  
CULP INC <CULP> SETS QUARTERLY. Qtly div two cts vs two cts prior Pay May 26 Record April 21  
WALL STREET STOCKS/AMES DEPT STORES <ADD>. Ames Department Stores Inc fell 1-7/8 to 23 in what analysts said was a reaction to a surprise announcement earlier today by the company that earnings in the fiscal year ended January 31 will decline sharply. Ames said it expects to report earnings of between 72 and 77 cts per share compared with 1.19 dlrs per share in the previous year. "We were looking for 1.15 dlrs," said an analyst at a major Wall Street firm who declined to be identified. Ames said most of the decline resulted from an inventory shortage at its Secaucus, N.J. distribution center. "The obvious suspicion is that there has been some kind of fraud or theft," said Ralph Shulansky, senior vice president of Ames. "We do not have hard evidence we are still putting things together." He said it would take several weeks for the company to complete an investigation. He said there are no law enforcement officials involved at this time. He declined to quantify the inventory shortage but said it was the major reason for the decline in earnings. A decline in gross margin percentage and an increase in the effective tax rate also contributed to the downturn, Ames said.  
TARO VIT INDUSTRIES LTD <TAROF> YEAR LOSS. Shr loss eight cts vs profit nil Net loss 488,759 vs profit 14,289 Sales 6,067,676 vs 5,047,383  
BARUCH-FOSTER CORP <BFO> 4TH QTR LOSS. Shr loss 92 cts vs profit one ct Net loss 2,487,439 vs profit 48,709 Revs 1,788,141 vs 4,167,070 Year Shr loss 1.50 dlrs vs profit 48 cts Net loss 4,073,724 vs profit 1,309,412 Revs 8,193,455 vs 15.7 mln NOTE: 1986 year net includes 3,095,305 dlr writedown of oil properties and reserves.  
OVERLAND EXPRESS INC <OVER> YEAR LOSS. Shr loss 9.31 dlrs vs loss 1.62 dlrs Net loss 16.2 mln vs loss 2,770,243 Revs 99.4 mln vs 96.2 mln  
A.H. ROBINS <QRAH> FILES MONTHLY REPORT. A.H. Robins Co said it filed its consolidated net earnings report for February, which amounted to 6,720,000 dlrs, compared to 4,646,000 for the comparable month the year prior. Consolidated net earnings for the two months ended Feb 28, 1987, amounted to 23.9 mln dlrs, compared to 15.4 mln dlrs for the comparable period a year earlier, it said. A.H. Robbins, which is in Chapter 11, said it filed the report with the U.S. trustee overseeing its case.  
MECHTRON INTERNATIONAL CORP <MCHT> YEAR NET. Shr three cts vs 80 cts Net 46,000 vs 1,220,000 Revs 11.5 mln vs 13.0 mln Avg shrs 1,608,000 vs 1,530,000  
DEVON RESOURCE INVESTORS <DIN> YEAR END DEC 31. Shr loss 14 cts vs profit 23 cts Net loss 835,000 vs profit 950,000 Revs 8,617,000 vs 11.8 mln  
BOWL AMERICA INC <BWLA> UPS PAYOUT. Qtly div 11 cts vs 10 cts prior Pay May 14 Record April 17  
CONCORD FABRICS INC <CIS> 2ND QTR NET. Shr 62 cts vs 38 cts Net 1,110,484 vs 677,192 Revs 36.6 mln vs 31.1 mln Six mths Shr 92 cts vs 68 cts Net 1,649,453 vs 1,211,597 Revs 68.2 mln vs 58.5 mln  
AMERICAN PACESETTER <AEC> 4TH QTR NET. Oper shr profit 92 cts vs loss six cts Oper net profit 1,351,000 vs loss 112,000 Revs 22.8 mln vs 28.7 mln Avg shrs 1,465,926 vs 1,968,601 Year Oper shr profit 1.81 dlrs vs profit three cts Oper net profit 2,837,000 vs profit 59,000 Revs 84.8 mln vs 69.9 mln Avg shrs 1,569,287 vs 1,980,432 Note: Current qtr figures exclude gain from discontinued operations of 533,000 dlrs, or 37 cts per share vs loss of 480,000 dlrs, or 24 cts per share. Current year figures exclude gain from discontinued operations of 752,000 dlrs, or 48 cts per share vs loss of 452,000 dlrs, or 23 cts per share.  
CORRECTED-ELDER-BEERMAN STORES CORP<ELDR>4TH QTR. Feb One end Oper shr 89 cts vs 1.31 dlrs Oper net 3,348,000 vs 4,885,000 Sales 126.8 mln vs 120.1 mln Year Oper shr 1.67 dlrs vs 2.15 dlrs Oper net 6,302,000 vs 8,013,000 Sales 380.9 mln vs 352.1 mln NOTE: Prior year net both periods excludes gain 1,998,000 dlrs from reversion of overfunded pension plans. Corrects current year operating net.  
GETTY PETROLEUM <GTY> YEAR NET. Shr 1.54 dlrs vs 1.09 dlrs Qtly div four cts vs four cts prior Net 17.1 mln vs 11.5 mln Revs 953.2 mln vs 1.33 billion Avg shrs 11.1 mln vs 10.5 mln NOTE: Cash dividend payable April 21 to holders of record April 10. Shr figures adjusted for five pct stock dividend declared March 31.  
GETTY PETROLEUM <GTY> SETS STOCK DIVIDEND. Getty Petroleum Corp said its board declared a five pct stock dividend payable on April 21 to shareholders of record April 10. The company also declared a regular cash dividend of four cts a share and reported 1986 net income rose to 17.1 mln dlrs from 11.5 mln dlrs.  
1ST CENTRAL FINANCIAL <FCC> SEES HIGHER EARNINGS. First Central Financial Corp said it expects earnings to rise significantly in 1987 and said it is actively seeking an acquisition. The property and casualty insurance company's chairman and chief executive officer, Martin J. Simon, told Reuters in an interview that he expects earnings of 33 cts a share in 1987 compared with 25 cts a year ago. He said, "the company currently has the sufficient momentum to achieve those earnings and the successful completion of licensing applications to operate in Pennsylvania, Delaware, Connecticut and Ohio should fuel our earnings." The company is currently licenced to operate only in New York state. Simon estimated that the company would earn seven cts a share in the first quarter compared to three cts in the same quarter a year ago, and eight cts a share in the second quarter compared to five cts earned in 1986. He expects the company to earn nine cts a share for each of the final two quarters of 1987. In addition, Simon said, First Central Financial "is actively looking for, and has several acquisition brokers looking for a small life insurance company to acquire." He said the acquisition should be in the 10 mln dlr range and will be part of a strategy of expanding the company into a "wide spectrum of insurance services." No specific company has been targeted as yet, "but I would like to make my first acquisition in 1987," he said. He said First Central Financial would not itself be an easy takeover target. It wants to remain independent, he said, and has implemented a staggered board of directors system. In addition, Simon, the company's biggest shareholder, holds about 960,000 of the 6.2 mln ouitstanding shares.  
HARVARD INDUSTRIES <HAVA> ANNOUNCES STOCK SPLIT. Harvard Industries Inc said its board approved a two-for-one stock split in the form of a special stock dividend of its outstanding common stock. The special dividend is payable May 28, 1987, to stockholders of record April 24, 1987. The split will be effected by one additional share for each common share held, the company said.  
OVERLAND EXPRESS INC <OVER> YEAR LOSS. Shr loss 9.31 dlrs vs loss 1.62 dlrs Net loss 16.2 mln vs loss 2.8 mln Revs 99.4 mln vs 96.5 mln NOTE: 1986 includes loss of 3.9 mln dlrs from restructuring. NOTE: loss 1986 includes 3.9 mln dlrs for restructuring costs associated with disposal of property. Loss also includes the sale-at-a-loss of the company's aircraft.  
ARTRA GROUP INC <ATA> 4TH QTR OPER LOSS. Oper shr loss 1.60 dlrs vs loss 1.17 dlrs Oper net loss 4,261,000 vs loss 2,816,000 Revs 28.9 mln vs 11.7 mln Avg shrs 2,817,616 vs 2,685,592 Year Oper shr profit 23 cts vs loss 1.10 dlrs Oper net profit 863,000 vs loss 2,390,000 Revs 85.9 mln vs 60.4 mln Avg shrs 2,754,258 vs 2,541,967 NOTE: Excludes loss of 1.9 mln dlrs vs loss 3.5 mln dlrs in qtr and gain 46,000 dlrs vs loss 3.9 mln dlrs in year from discontinued operations. Also excludes loss of 1.7 mln dlrs in current qtr from reversal of tax loss carryforwards. Includes gain of 6.6 mln dlrs in current year from purchase of Envirodyne Industries Inc shares and charge of 1.4 mln dlrs in current qtr from research and development costs. 1986 both periods includes operations of Sargent-Welch Scientific Co, acquired on Nov 30, 1986 and interest in Rosecraft Inc since June 4 and Lawrence Jewelry Corp since Oct 22. 1985 both periods includes interest in R.N. Koch Inc since Feb 8, 1985.  
TRANSWORLD LIQUIDATING <TWT> TO DISTRIBUTE. Transworld Corp Liquidating Trust said it expects to make an initial distribution to beneficiaries valued at 20.10 dlrs per unit from the proceeds of the sale of Hilton International Co. The value of the distribution assumes yesterday's closing price of UAL's common stock of 56.50 dlrs per share. Earlier, UAL announced that it completed the purchase of Hilton International Co for 835.7 mln dlrs in cash and 2.5 mln shares of UAL Inc common stock. Total value of the sale is about 977.2 mln dlrs, Transworld said. Pursuant to the sale, UAL exercised its option to substitute cash for 200 mln dlrs of debentures and 55,493 shares of common stock, Transworld Liquidating said. Each unit of beneficial interest in the trust will be allocated 0.051675 shares of UAL common stock. The aggregate value of the distribution is 975.8 mln dlrs. The balance of the cash in the trust will be held by the Trust until April 29 and will be used to satisfy all ouststanding liabilities and obligations of the trust. After satisfaction of its liabilities and obligations, the trust would make a second distribution to its beneficiaries of any remaining cash on or about April 29. Trading in the beneficial interests, which are listed on the New York Stock Exchange, will cease after today. In order to receive the distribution, beneficiaries must surrender the certificates representing their beneficial interests. The trust was formed at year end 1986 to facilitate the sale of Hilton International.  
MOBILE AMERICA CORP <MAME> YEAR END DEC 31. Shr 2.25 dlrs vs 1.35 dlr Net 1,199,791 vs 724,755 Revs 11.7 mln vs 9,105,952  
INTERNATIONAL DAIRY QUEEN <INDQA> 1ST QTR NET. Ended February 28. Shr 18 cts vs 13 cts Net 1,706,601 vs 1,226,609 Rev 42.7 mln vs 36.3 mln Avg shares 9,695,444 vs 9,537,043 NOTE: Company's full name is International Dairy Queen Inc.  
DE TOMASO INDUSTRIES INC <DTOM> YEAR NET. Shr 2.90 dlrs vs 1.44 dlrs Net 8,862,000 vs 4,391,000 Revs 221.6 mln vs 265.3 mln NOTE: Translated from Italian lire in U.S. dollar equivalents at the exchange rate prevailing at Dec 31, 1986.  
COLEMAN SEES 23 CTS A SHR 1ST QTR CHARGE FROM HEAT EXCHANGER REPLACEMENT PROGRAM.  COLEMAN SEES 23 CTS A SHR 1ST QTR CHARGE FROM HEAT EXCHANGER REPLACEMENT PROGRAM  
COLEMAN <CLN> SEES 1ST QTR CHARGE. Coleman Co said it expects a first-quarter charge against earnings of 1.6 mln dlrs, or 23 cts a share, as a result of its voluntary program to replace condensing heat exchangers in its early Model 90 series high-efficiency residential gas furnaces. The company said extensive testing indicates a problem found in the furnaces is not safety related. Coleman said it noted an increasing number of heat exchangers in certain furnaces made from March 1984 through December 1985 were returned because of corrosion.  
PACIFIC GAS SAID ACCOUNTING CHANGE WILL REDUCE 1987 NET BY 470 MLN DLRS.  PACIFIC GAS SAID ACCOUNTING CHANGE WILL REDUCE 1987 NET BY 470 MLN DLRS  
TRIBUNE/SWAB-FOX COS INC <TSFC> 4TH QTR LOSS. Shr loss 15 cts vs nil Net loss 4,356,285 vs profit 300,000 Year Shr loss 12 cts vs profit five cts Net loss 2,744,826 vs profit 2,490,262 NOTE: 1985 earnings restated for discontinued operations Per-share results reflect payment of preferred dividends Company did not release revenues  
BARRINGER RESOURCES INC <BARR> YEAR END DEC 31. Shr profit 70 cts vs loss 33 cts Net profit 2,598,000 vs loss 687,000 Revs 7,438,000 vs 6,467,000 NOTE: 1986 net includes 2,168,000 dlrs or 61 cts a share for gain on cancellation of long-term debt through a debenture offer.  
CONCORD FABRICS INC <CIS> 2ND QTR OPER NET. Ended March one Oper shr 47 cts vs 41 cts Oper net 840,484 vs 732,000 Revs 36.6 mln vs 31.1 mln Six mths Oper shr 77 cts vs 75 cts Oper net 1,379,453 vs 1,338,346 Revs 68.2 mln vs 58.5 mln NOTE: Excludes net gain of 27,000 dlrs or 15 cts/shr in current qtr and six mths from disposal of discontinued operations. Year-ago excludes loss of 54,808 dlrs or three cts in qtr and 126,749 dlrs or seven cts in six mths from discontinued operations.  
P.C. QUOTE INC <PCQT> YEAR LOSS. Shr loss 30 cts vs loss 44 cts Net loss 1,135,805 vs loss 1,461,792 Sales 3,398,893 vs 2,075,260  
<EXECUTIVE HOUSE INC> YEAR LOSS. Shr loss 26 cts vs loss six cts Net loss 535,110 vs loss 129,433 Revs 787,000 vs 622,130  
LORI CORP <LRC> 4TH QTR OPER NET LOSS. Oper shr loss 14 cts vs loss 49 cts Oper net loss 22,000 vs loss 441,000 Revs 22.6 mln vs 13.6 mln Year Oper shr profit 14 cts vs profit 47 cts Oper net profit 1,952,000 vs profit 2,794,000 Revs 76.2 mln vs 56.4 mln NOTE: 1986 4th qtr and year oper net excludes a loss of 54,000 dlrs for discontinued operations, and a a gain of 218,000 dlrs and 2,393,000 dlrs, respecitvely, for extraordinary item. 1985 4th qtr and year oper net excludes a loss of 77,000 dlrs and about 54,000 dlrs, respectively, for discontinued operations and a loss of 285,000 dlrs and a gain of 2,757,000 dlrs, respectively, for extraordinary item.  
OTF EQUITIES INC <OTFE> 4TH QTR NET. Shr profit 28 cts vs loss 32 cts Net profit 1,190,000 vs loss 686,000 Revs 40.8 mln vs 2.2 mln Year Shr profit 20 cts vs loss 49 cts Net profit 2,021,000 vs loss 1,162,000 Revs 103 mln vs 9.5 mln Avg shrs 4,206,371 vs 2,124,967  
DOME PETROLEUM LTD YEAR OPER SHR LOSS 6.94 DLRS VS LOSS TWO CTS.  DOME PETROLEUM LTD YEAR OPER SHR LOSS 6.94 DLRS VS LOSS TWO CTS  
SALEM CORP <SBS> 4TH QTR LOSS. Shr loss 1.82 dlrs vs loss 16 cts Net loss 2,285,000 vs loss 264,000 Revs 23.0 mln vs 14.6 mln Year Shr loss 1.59 dlrs vs profit seven cts Net loss 2,467,000 vs profit 112,000 Revs 77.3 mln vs 75.8 mln NOTE: Includes loss of 1.1 mln dlrs or 70 cts/shr from asset writedowns and cost reductions.  
CONSUMERS POWER SEES ONE-TIME 1ST QTR LOSS OF SEVEN CTS/SHR FROM SUIT.  CONSUMERS POWER SEES ONE-TIME 1ST QTR LOSS OF SEVEN CTS/SHR FROM SUIT  
DOME PETROLEUM TAKES 1986 WRITEDOWNS TOTALLING 2.08 BILLION DLRS.  DOME PETROLEUM TAKES 1986 WRITEDOWNS TOTALLING 2.08 BILLION DLRS  
DOME PETROLEUM LTD <DMP> YEAR LOSS. Shr loss 6.94 dlrs vs loss two cts Net loss 2.20 billion vs profit 7.0 mln Revs 1.55 billion vs 2.44 billion Note: 1986 shr and net include writedowns totalling 2.08 billion dlrs before a reduction in deferred income taxes of 571 mln dlrs. Net also includes 214 mln dlrs in accumulated foreign exchange losses Canadian funds Note continued: shr after preferred dividends  
CHELSEA <CHD> SEES LOWER 2ND QTR NET. Chelsea Industries Inc said earnings for its fiscal second quarter ended March 30 will be "sharply lower" than the 1,414,000 dlrs or 55 cts a share it earned for the same quarter last year. It also said it lowered its earnings forecasts for the remainder of the fiscal year. In fiscal 1986, the company earned 7,206,000 dlrs or 2.78 dlrs a share. The company cited intensely competitive market conditions in its polyethelyne trash liner business and startup costs related to its acquisition of Artisan Plastic for the reduced earnings outlook.  
DOME PETE<DMP> TAKES 2.08 BILLION DLR WRITEDOWN. Dome Petroleum Ltd, earlier reporting a 2.20 billion dlr 1986 loss compared to year-earlier profit of 7.0 mln dlrs, said the loss was mainly due to write downs totalling 2.084 billion dlrs before a reduction in deferred income taxes of 571 mln dlrs. The loss also includes 214 mln dlrs in accumulated foreign exchange losses, the company said. "The dramatic drop in energy prices in early 1986 reverses much of the progress the company has made in the two previous years," Dome chairman J. Howard Macdonald said in a statement. "But even a net loss of this magnitude has very little bearing on the day-to-day operations of Dome," chairman Macdonald said. "It merely reflects the realistic carrying value of the company's assets in today's economic environment, and the absolute need for reaching a timely agreement with our lenders on a debt restructuring plan to assure the company's continued existence," he added. Dome is now trying to reach agreement on a complex plan for restructuring debt of more than 6.10 billion dlrs. Dome said it charged the 214 mln dlrs in accumulated foreign exchange losses to current expenses because of the uncertainty arising from its proposed restructuring plan. Normally the expenses would be amortized over the remaining period of the loans to which they apply, it said. Dome also said the write downs included a fourth quarter reduction in the value of its oil and gas properties of 1.20 billion dlrs, before a reduction in deferred income taxes of 305 mln dlrs. The fourth quarter writedown was in addition to a charge of 880 mln dlrs on certain other assets, taken mainly in the third quarter. Dome said the 1.20 billion dlr fourth quarter charge resulted from a year-end accounting change made under new full cost accounting guidelines by the Canadian Institute of Chartered Accountants. The company said it previously determined a write down of conventional oil and gas properties was not required at September 30, under the previous method of calculating the limitation of oil and gas values. Dome said the most significant accounting change under the new guidelines is using current oil and gas prices in calculations instead of escalating price forecasts. Terms of Dome's proposed debt restructuring plan preclude the company from making an accurate estimate of future financing costs, which are used in the new accounting calculations, it said. As a result, Dome adopted current prices and costs and a 10 pct discount factor in the calculations, which substantially conform with accounting rules prescribed by the U.S. Securities and Exchange Commission, the company said. Dome said operating income from its crude oil and natural gas segments fell by 2.50 billion dlrs to a 1986 loss of 1.71 billion dlrs from prior year earnings of 737.0 mln dlrs. Dome said the steep drop in crude oil and natural gas operating income was due to write downs totalling 1.93 billion dlrs and lower energy prices that sharply reduced revenue. Reduced production of natural gas and lower utilization of Dome's offshore drilling fleet in the Beaufort Sea also contributed to the decline, it said. Earnings from its natural gas liquids business fell by 79 pct to 42.0 mln dlrs from 199 mln dlrs in 1985. Cash from operations dropped to 5.0 mln dlrs from year-ago 542.0 mln dlrs and unrestricted cash balance declined to 202.0 mln dlrs from 466.0 mln dlrs. Dome said 1986 crude oil production in 1986 was maintained at prior year's levels through new drilling activity and improvements in productivity. Natural gas production fell by nine pct as a result of lower domestic and export sales, it said. Oil and field natural gas liquids production totalled 86,000 barrels a day, compared to 87,000 bpd in the prior year. Natural gas production fell to 536.0 mln cubic feet a day from 591.0 mcf a day.  
ORION CAPITAL CORP <OC> 4TH QTR LOSS. Shr loss 9.42 dlrs vs loss 3.85 dlrs Net loss 55.5 mln vs loss 21.4 mln Revs 114.9 mln vs 120.0 mln Avg shrs 6,460,000 vs 5,719,000 Year Shr loss 6.80 dlrs vs loss 4.77 dlrs Net loss 36.0 mln vs loss 26.2 mln Revs 478.9 mln vs 437.9 mln Avg shrs 6,016,000 vs 5,713,000 Note: Net includes realized capital gains of 2,610,000 vs 2,442,000 for qtr and 18.1 mln vs 13.6 mln for year. 1986 net also includes gain on termination of pension plan of 2,614,000 for qtr and year, and tax loss of 3,605,000 for qtr. Includes pretax gain from sale of common stock in Guaranty National Corp of 5,722,000 for year. Revised estimated calculation of workers compensation earned premiums decreased 1986 earned premiums by 10 mln. Year-ago results restated to reflect deconsolidation of Guaranty National.  
AVON PRODUCTS <AVP> SEES HIGHER 1987 EARNINGS. Avon Products Inc, the diversifed conglomerate that had a strong turn around in 1986, said it expects sales and earnings to climb higher this year. In its annual report, the company also said it expects to maintain its current annual two dlr dividend on the basis of continued upward earnings. In 1986, Avon's operational earnings rose 24 pct to 158.7 mln dlrs from 128.2 mln dlrs a year earlier, and sales rose 17 pct to 2.88 billion dlrs. It said the 2.23 dlrs a share earned last year was the highest in five years, but still well below the company's all-time high of 4.06 dlrs a share in 1979.  
PACIFIC GAS <PCG> ACCOUNTING CHANGE TO CUT NET. Pacific Gas and Electric Co said it expects to record a 470 mln dlr, or 1.25 dlr per share, reduction in 1987 earnings because of the company's decision to change the method used to record Diablo Canyon Nuclear Power Plant revenues. The accounting change will not affect the company's cash position and the company intends to continue paying its dividend at the annual rate of 1.92 dlrs per share. Last year Pacific Gas reported earnings of 925 mln dlrs, or 2.60 dlrs per share. Pacific Gas said the accounting change was prompted by delays in the receipt of a California Public Utilities Commission decision on the company's 1984 application for rate relief to recover the 5.8 billion dlr cost of constructing units one and two of the Diablo Canyon Nuclear Power Project. It said the commission is currently allowing the company to recover 40 pct of the cost of owning and operating the plants. As a result, 63 mln dlrs has been accumulating each month as deferred non-cash account receivable, which has been included in current income. But the accounting change, effective January 1, will reflect only cash received through interim rates approved by the commission, Pacific Gas and Electric said. It also said the commission is now awaiting its Public Staff Division's report which will recommend how much of the 5.8 billion dlr investment Pacific Gas should be allowed to recover in rates. The company further stated that it is confident it will receive an objective review of the facts. It also said it intends to seek additional interim rates. Pacific Gas began construction of the two nuclear power units in 1969. After a number of construction delays, unit one went into operation in May 1985 and unit two went on line in March last year.  
GIANT FOOD INC <GFS.A> 4TH QTR FEB 28 NET. Shr 50 cts vs 66 cts Net 15.0 mln vs 20.0 mln Revs 861.2 mln vs 725.9 mln Year Shr 1.55 dlrs vsd 1.90 dlrs Net 46.5 mln vs 57.0 mln Revs 2.53 billion vs 2.25 billion Note: 1986 had 53 weeks vs 52 weeks in 1985. 4th qtr 1986 had 17 weeks vs 16 weeks in 1985.  
MCO RESOURCES INC <MCR> 4TH QTR LOSS. Shr loss 1.37 dlrs vs 1.59 dlrs Net loss 38.6 mln vs 42.5 mln Revs 31.4 mln vs 59.4 mln Note: 1986 net includes pretax writedown of 23 mln on oil and gas properties and a 30.3 mln non-cash provision for impairment of geothermal property.  
LINEAR FILMS <LNER> SEES LOWER FOURTH QTR NET. Linear Films Inc said it sees lower earnings in the fourth quarter ending March 31 compared with a year ago due to lower profit margins on stretch film from price increases of polyethelene resin, a key raw material. In last year's fourth quarter it earned 1,235,000 dlrs or 19 cts a share, a spokesman said. The company said it is raising its stretch film prices by six pct as of April 15 to reflect the higher costs of polyethelene resin. It also said sale volume of stretch film in the fourth quarter was lower than anticipated, although it has returned to normal in recent weeks.  
AUDITORS QUALIFY MCO RESOURCES <MCR> REPORT. MCO Resources Inc said its independent auditors have qualified their opinion on the company financial statements for 1986, in which it posted a net loss of 38.6 mln dlrs or 1.37 dlrs a share on revenues of 31.4 mln. MCO said the qualfied opinion related to its realization of the carrying amount of its geothermal property and its ability to continue as an ongoing concern, which is dependent upon the restructuring of the company's bank debt and other obligations, resolution of the uncertainties surrounding its geothermal operations and the success of future operations. The company said its capital spending for 1987 has been virtually eliminated and that an additional staff reduction of about 20 pct is being implemented today.  
INTERNATIONAL LEASE FINANCE <ILFC> 1ST QTR NET. Shr 22 cts vs 13 cts Net 7,121,000 vs 4,481,000 Revs 37.4 mln vs 22.8 mln Avg shrs primary 30,067,000 vs 29,735,000  
ARCO <ARC> SAYS NET TO COVER DIVIDEND PAYOUT. Atlantic Richfield Oil Co said it expects first quarter net income to cover its dividend requirements in the quarter. The company paid a quarterly dividend of one dlr a share earlier this month.  
SERVOTRONICS <SVT> SETS 10 PCT STOCK DIVIDEND. Servotronics Inc said it declared a 10 pct stock dividend, payable May 15 to shareholders of record April 21. The company last declared a stock dividend, also 10 pct, in March 1986.  
SERVOTRONICS INC <SVT> YEAR NET. Oper shr 50.4 cts vs 48.7 cts Oper net 688,000 vs 665,000 Revs 12.3 mln vs 10.7 mln Note: Oper excludes tax credits of 559,000 vs 537,000  
<POCO PETROLEUMS LTD> 1ST QTR JAN 31 NET. Shr eight cts vs 30 cts Net 1,100,000 vs 3,900,000 Revs 14.9 mln vs 20.7 mln  
NATURE'S BOUNTY INC <NBTY> YEAR LOSS. Shr loss 10 cts vs loss 38 cts Net loss 393,241 vs loss 1,384,334 Revs 43.6 mln vs 40.3 mln  
AUDITORS GIVE FIRST CITY <FBT> QUALIFIED OPINION. First City Bancorp of Texas, which lost a record 402 mln dlrs in 1986, said in its annual report it expected operating losses to continue "for the foreseeable future" as it continues to search for additional capital or a merger partner. The Houston-based bank's 1986 financial statements received a qualified opinion from its auditors, Arthur Andersen and Co. The auditors said their opinion was subject to First City eventually obtaining additional capital. "The company believes that in order to address its long-term needs and return to a satisfactory level of operations, it will ultimately need several hundred million dollars of additional capital, or a combination with a more strongly capitalized entity," First City said in a note to its financial statements included in the annual report. "Management believes that sufficient resources should be available to cover interim capital concerns while additional capital is being sought," the bank said. To raise cash in the near-term, First City said it may sell or mortgage non-strategic assets, recover excess contributions to its pension plan and obtain special dividends from some of its member banks. "The losses for 1987 are expected to be substantially less than in 1986," First City chairman J.A. Elkins said in a letter included in the annual report. "However, the ultimate return to satisfactory operating conditions is dependent on the successful resolution of the related problems of credit quality, funding and the eventual need for substantial additional capital." First City said it anticipated that certain covenants of a credit agreement with unaffiliated banks requiring most of First City's excess cash to be applied to debt repayments would be modified by the end of the first quarter in order to avoid default. The banks agreed to similar amendments to the covenants last year and First City has reduced its borrowings from 120 mln dlrs at 1986 yearend to 68.5 mln dlrs in recent weeks. Although the parent company's capital adequacy ratios exceeded regulatory minimum requirements at the end of 1986, First City said its two largest subsidiaries did not. First City National Bank of Houston had a primary capital ratio of 5.34 pct and First City Bank of Dallas had a 4.75 pct ratio. Hard-hit by the collapse in oil and Texas real estate prices, First City's net loan chargeoffs totaled 366 mln dlrs last year, up from 261 mln dlrs in 1985. The bank more than doubled its loan loss provision to 497 mln dlrs at the end of 1986. First City said chargeoffs and paydowns reduced its total energy loan portfolio by 32 pct during 1986, to 1.4 billion dlrs at year-end, adding that future energy chargeoffs "should be more modest." The amount represented 15 pct of First City's total loans. In real estate, First City said its nonperforming assets nearly doubled last year to 347 mln dlrs at year-end. Chargeoffs of real estate loans rose to 32 mln dlrs, or nine pct of total loan chargeoffs, and the bank said the amount could go higher. "The company still faces uncertainties in the real estate market and anticipates further deterioration in the pportfolio so long as the regional recession persists," First City said. "Because the carrying value of many of these loans is collateral dependent, a further decline in the overall value of the collateral base could cause an increase in the level of real estate-related chargeoffs."  
MICROBIOLOGICAL SCIENCES INC <MBLS>4TH QTR LOSS. Oper shr loss 10 cts vs profit nine cts Oper net loss 387,000 vs profit 313,000 Revs 6,486,000 vs 5,613,000 Year Oper shr loss two cts vs profit four cts Oper net loss 96,000 vs profit 120,000 Revs 23.8 mln vs 21.3 mln Note: 1986 oper excludes extraordinary gains of 299,000 for qtr and year.  
LOWELL INSTITUTION FOR SAVINGS <LIFS> QTLY DIV. Qtly div 7.5 cts vs 7.5 cts prior Pay May 19 Record April 24  
EARTHWORM TRACTOR CO INC <WORM> YEAR LOSS. Oper shr loss 11 cts vs profit two cts Oper net loss 1,058,585 vs profit 282,998 Revs 24.4 mln vs 23.7 mln Note: 1986 oper includes accrued interest of 686,914 from financing of capital goods transaction with Prudential Bache Trade Corp. Year-ago oper excludes extraordinary gain of 121,000.  
COMMERZBANK SEES LOWER OPERATING PROFIT THIS YEAR. Commerzbank AG <CBKG.F> management board chairman Walter Seipp said that from the present viewpoint the bank must expect 1987 full operating profit to be lower than in 1986. In the first two months of the year, partial operating profit -- excluding trading on the bank's own account - declined, he said, without giving details. The interest surplus fell 2.8 pct compared with 2/12ths of 1986 results, while the commission surplus, because of the quiet stock exchange business, fell back still more strongly. By contrast the personnel and fixed asset expenses increased. German banks do not report full operating profit. But Seipp said last year the figure for the first time had topped one billion marks for the parent bank, and the group result was around 50 pct higher than this. Commenting on 1986, Seipp said, "we were able to raise the full operating profit...Slightly above the record result of 1985 because own account profits increased slightly." He gave no concrete details but added that in January and February, good own account trading profits meant that the drop in full operating earnings was more modest than that in the partial operating figure. The bank would, as a result, be more profit-oriented in future, developing, for example, more into investment banking, keeping a tight rein on personnel costs and dampening expenditures on fixed assets. Turning to 1986 results, Seipp said by year end there had been a strong growth in business volume. Over the year business volume rose by 9.9 pct to 93.2 billion marks compared with 1985, Seipp added. Group balance sheet volume rose by 8.0 pct to 148.15 billion. It would have been around five billion marks higher still if currency relationships had remained unchanged. In the parent bank, the interest surplus rose nine pct in the year, while the interest margin held roughly at 1985's 2.56 pct despite pressure on credit rates. The surplus on commission business, which had soared by a quarter in 1985, rose by 11.6 pct last year thanks almost exclusively to growth in securities commissions, Seipp said. Personnel expenditure was up 11.9 pct last year, at more than 1.5 billion marks. Fixed asset expenditure rose by 9.6 pct to more than 650 mln. As a result, the parent bank partial operating profit rose by 3.2 pct to 752 mln marks. Parent bank tax payment rose to 244 mln marks last year from 233 mln in 1985. Seipp said extraordinary earnings included a "high two-figure million" in profit from the sale of the bank's AEG AG <AEGG.F> shares to Daimler-Benz AG <DAIG.F> during the latter's majority stake purchase booked last year. The ability of the bank to write off depreciations in credit business against profits from securities trading and earnings on the sale of stakes had been utilised, as in prior years, to its full extent. Because of numerous insolvencies at home, by far the largest part of the provisions were set aside for individual write-downs from domestic business. Abroad, the circle of problem debtor countries rose last year, although the ratio of credit exposure to provisions improved further. Seipp said that because about half the group's exposure to problem nations was in dollars, the bank had swapped into dollars individual provisions hitherto held primarily in marks. "This means that no open currency positions exist any longer on the amount of the provision that is made against an actual default," he added. Despite the increase in concern over debtor nations in the last few weeks, he said, the international banking community is better armed than it was against payment problems. All banks had significantly strengthened their capital base, most European banks had made considerable provisions against bad debts while goverments and central banks were better prepared for unforseen difficulties. He described debt-equity swaps as a very interesting new approach to indebted nations' problems. There was a lot of interest in direct investment via an equity participation in Latin America, particularly from West German firms.  
SKYLARK CO LTD <SKLK.T> 1986 YEAR. Group shr 65.44 yen vs 73.30 Net 4.48 billion vs 4.19 billion Current 10.85 billion vs 9.77 billion Operating 9.65 billion vs 9.54 billion Sales 103.53 billion vs 94.39 billion NOTE - Company forecast for current year is group shr 70.05 yen, net 4.80 billion, current 11.20 billion and sales 113 billion.  
GROUPE BRUXELLES LAMBERT PROFIT UP. Net consolidated profit after deduction for minorities 6.52 billion francs vs 5.40 billion. Non-consolidated net profit 3.46 billion francs vs 3.05 billion. Note - Results for year 1986. Company's full name is Groupe Bruxelles Lambert SA <LAMB.BR>. Proposed net final dividend on ordinary shares 70 francs vs 65 to take total net payment for year to 120 francs vs 110.  
GUARDIAN ROYAL PROFIT UP SHARPLY AT 143.8 MLN STG. Year to Dec 31 Shr profit 63.6p vs loss 8.7p Final div 24p making 34p vs total 28.75p Pretax profit 143.8 mln stg vs 3.5 mln General underwriting loss on short-term business 79.8 vs 154.3 NOTE - Company's full name is Guardian Royal Assuance Plc <GREX.L> Underwriting profit on long-term insurance business 21.6 mln stg vs 19.1 mln Loss on discontinued international professional indemnity business nil vs 40.6 mln stg Investment income 213.8 mln stg vs 193.6 mln Less interest payable 11.8 mln stg vs 14.3 mln Tax 38.8 mln stg vs 15.0 mln Minorities 3.3 mln stg vs 2.3 mln Extraordinary item - contingency claims provisions on discontinued international business nil vs 55.0 mln stg  
SUN LIFE ASSURANCE profit up. Year 1986 DIV 18.1p making 28.5p vs 23.74p PROFIT AFTER TAX 17.4 mln stg vs 14.1 mln TAX 0.7 mln stg vs 0.2 mln Bonus distribution rose to new record level of 125.1 mln stg vs 114.9 mln in 1985 Full name of company is Sun Life Assurance Society Plc <SULL.L>.  
SUN ALLIANCE PRETAX PROFIT 180.4 MLN STG VS 37.7 MLN FOR. 1986  SUN ALLIANCE PRETAX PROFIT 180.4 MLN STG VS 37.7 MLN FOR 1986  
SUN ALLIANCE reports sharp profit rise. Year 1986 Shr 64.2p vs 14p Div 16p making 23.5p vs 17.5p Pretax profit 180.4 mln stg vs 37.7 mln Net after tax 137.1 mln vs 34.9 mln Minorities 10.5 mln vs 7.2 mln General premium income 1.99 billion stg vs 1.78 billion Long term premium income 704.5 mln vs 576.6 mln General insurance underwritng loss 78.3 mln vs 183.4 mln Long term insurance profits 27.3 mln vs 20.9 mln Investment and other income 231.4 mln vs 200.2 mln. Company's full name is Sun Alliance and London Insurance Plc <SUNL.L>.  
CAREPLUS INC <CPLS> 4TH QTR NET. Shr loss nil vs profit nil Net loss 17,000 vs profit 31,000 Revs 5,429,000 up 27 pct Year Shr profit four cts vs profit five cts Net profit 523,000 vs profit 421,000 Revs 18.3 mln vs 11.6 mln Avg shrs 15.2 mln vs 8,941,000 NOTE: Year net includes tax credits of 131,000 dlrs vs 194,000 dlrs. 1986 net both periods includes charge 264,000 dlrs from settlement of overtime wage dispute and addition to provision for uncollectible accounts.  
JOHN ADAMS LIFE CORP <JALC> 4TH QTR LOSS. Oper shr loss 24 cts vs profit 24 cts Oper net loss 716,000 vs profit 729,000 Revs 3,673,000 vs 7,826,000 Avg shrs 2,930,000 vs 2,930,000 Year Oper shr profit nil vs profit 1.31 dlrs Oper net profit 10,000 vs profit 3,200,000 Revs 12.9 mln vs 26.3 mln Avg shrs 2,930,000 vs 2,454,521 NOTE: Net excludes realized investment gains of 2,000 dlrs vs 13,000 dlrs quarter and 104,000 dlrs vs 6,000 dlrs year. 1985 net both periods excludes 57,000 dlr extraordinary gain.  
TEMPO ENTERPRISES INC <TPO> YEAR NET. Shr 40 cts vs 36 cts Net 2,309,000 vs 2,076,000 Revs 28.2 mln vs 30.4 mln  
PEOPLES BAN CORP <PEOP> SEES 1ST QUARTER NET UP. Peoples Ban Corp said it expects to report first quarter earnings of over six mln dlrs, including a gain of 1,600,000 dlrs from the settlement of a dispute with the Internal Revenue Service and the sale of four banking offices in Vancouver, Wash. The company said it expects to report "normal" earnings for the rest ofd the year of 4,500,000 to five mln dlrs per quarter. Peoples earned 105,000 dlrs in last year's first quarter and in all of 1986 lost 1,768,000 dlrs.  
MAXXAM GROUP INC <MXM> 4TH QTR LOSS. Shr loss 1.61 dlrs vs loss 47 cts Net loss 19.2 mln vs loss 5,716,000 Revs 46.4 mln vs 11.0 mln Year Shr loss 2.01 dlrs vs loss 29 cts Net loss 24.5 mln vs loss 3,548,000 Revs 150.2 mln vs 24.4 mln NOTE: 1985 net includes tax credits of 7,336,000 dlrs in quarter and 10.2 mln dlrs in year. Results include 64.7 pct stake in Pacific Lumber Co from December 1985 through February 1987 and 100 pct thereafter.  
FAMILY DOLLAR STORES INC <FDO> 2ND QTR FEB 28. Shr 28 cts vs 31 cts Net 8,117,095 vs 8,954,904 Sales 146.7 mln vs 133.0 mln Avg shares 29.0 mln vs 28.9 mln First half Shr 48 cts vs 53 cts Net 13.8 mln vs 15.2 mln Sales 273.0 mln vs 242.1 mln Avg shrs 29.0 mln vs 28.9 mln  
MCO HOLDINGS INC <MCO> 4TH QTR LOSS. Oper shr loss 2.27 dlrs vs loss 1.62 dlrs Oper net loss 12.7 mln vs loss 12.1 mln Revs 60.0 mln vs 26.2 mln Year Oper shr loss 5.16 dlrs vs loss 1.56 dlrs dOper net loss 29.0 mln vs loss 12.4 mln Revs 139.3 mln vs 110.0 mln NOTE: 1985 operating losses exclude profits of 19.5 mln dlrs, or 2.64 dlrs a share, in quarter and 20.6 mln dlrs, or 2.74 dlrs a share, in year from discontinued operations 1985 loss in both periods includes pre-tax charge of 16.9 mln dlrs on write down of oil properties. 1986 year loss includes pre-tax charge of 23.0 mln dlrs for write down of oil and gas properties.  
RANSBURG CORP <RBG> 1ST QTR FEB 28 LOSS. Oper shr loss 19 cts vs profit one ct Oper net loss 1,495,000 vs profit 50,000 Revs 52.3 mln vs 48.9 mln NOTE: Earnings exclude gains from utilization of tax loss carryforwards of 82,000 dlrs, or one ct a share vs 300,000 dlrs, or three cts a share  
SNYDER OIL PARTNERS LP <SOI> SETS QUARTERLY. Qtly div 30 cts vs 30 cts prior Pay April 30 Record April 15  
VALHI <VHI> REPORTS PRO-FORMA EARNINGS. Valhi Inc, formed by the March 10 merger of Amalgamated Sugar Co into LLC Corp, said it had unaudited pro-forma earnings of 72 mln dlrs, or 61 cts a share, for the six months ended December 31. Valhi said these results were prepared as if the merger had occurred July 1, 1986, and on substantially the same basis as the pro-forma financial information in LLC's and Amalgamated's joint proxy statement dated February 10. Valhi said it has about 117 mln common shares outstanding with about 85 pct held by <Contran Corp>.  
ACME-CLEVELAND CORP <AMT> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay May 13 Record April 29  
VMS STRATEGIC LAND TRUST <VLANS> SETS PAYOUT. VMS Strategic Land Trust declared an initial dividend of 30 cts a share payable May 15 to shareholders of record April 20. The dividend represents a 12 pct annual return based on the company's original offering price in December of 10 dlrs a share. The return is guaranteed through December 31, 1988, the company said. The trust invests in short term junior preconstruction mortgage loans and has total principal amount of investments of approximately 105.7 mln dlrs.  
GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE. OF GEORGIA GULF STAKE  GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE OF GEORGIA GULF STAKE  
WEATHERFORD INTERNATIONAL INC <WII> 4TH QTR LOSS. Shr loss 40 cts vs loss 1.30 dlrs Net loss 3,619,000 vs loss 11.3 mln Revs 24.1 mln vs 34.1 mln Year Shr loss 4.36 dlrs vs loss 2.09 dlrs Net loss 38.7 mln vs loss 16.8 mln Revs 104.6 mln vs 133.9 mln  
PROGRESSIVE SAVINGS <PRSL> 4TH QTR LOSS. Shr loss 1.05 dlrs vs profit three cts Net loss 4,477,000 vs profit 107,818 Revs 10.9 mln vs 13.8 mln Year Shr loss 79 cts vs profit three cts Net loss 3,364,058 vs profit 123,880 Revs 50.9 mln vs 57.2 mln Note: Full name Progressive Savings and Loan Association. Current year figures include 5.1 mln dlr incrase to reserves for estimated real estate and loan losses.  
JOHN O. BUTLER CO <BUTC> 2ND QTR FEB 28 NET. Shr 19 cts vs 18 cts Net 1,230,041 vs 1,153,280 Sales 10,909,729 vs 9,675,355 Six mths Shr 31 cts vs 29 cts Net 2,019,930 vs 1,857,357 Sales 21.0 mln vs 17.8 mln  
<GUILLEVIN INTERNATIONAL INC> YEAR JAN 31 NET. Shr 51 cts vs 36 cts Net 2,543,285 vs 1,686,559 Sales 153.2 mln vs 120.7 mln  
COSMO COMMUNICATIONS CORP <CSMO> YEAR LOSS. Shr loss one ct vs loss 2.16 dlrs Net loss 30,000 vs loss 12.4 mln Revs 27.4 mln vs 38.3 mln  
LINEAR <LNER> SEES LOWER COMPARABLE 4TH QTR NET. Linear Films Inc said its fourth quarter earnings for the period ended March 31, will be lower than the 1,235,000 dlrs or 19 cts a share reported in the year-ago quarter on sales of 11.8 mln dlrs. The company attributed the lower earnings to narrowing profit margins on stretch film. Linear also said it is increasing its stretch film prices by six pct effective April 15.  
STAODYNAMICS INC <SDYN> 4TH QTR NET. Shr three cts vs six cts Net 54,965 vs 106,147 Revs 2,124,983 vs 1,915,928 Avg shrs 2,206,017 vs 1,878,438 Year Shr 14 cts vs eight cts Net 302,388 vs 157,690 Revs 7,952,360 vs 7,495,936 Avg shrs 2,139,991 vs 2,051,178  
GEORGIA PACIFIC <GP> SEES GAIN FROM SALE. Georgia-Pacific Corp said its second quarter results will include a gain of 60 mln dlrs pre-tax, or 34 cts per share after-tax, from the sale of its interest in <Georgia Gulf Corp>. The company said it is selling warrants for about 1.8 mln shares of Georgia Gulf common stock to Goldman Sachs and Co in connection with the 4.8 mln share offering of Georgia Gulf. It said it received the warrants when it agreed to sell its commmodity chemical operations to Georgia Gulf in 1984.  
THOUSAND TRAILS INC <TRLS> YEAR LOSS. Shr loss 4.87 dlrs vs profit 16 cts Net loss 50,422,000 vs profit 1,788,000 Revs 113.4 mln vs 173.7 mln Note: Current year figures include 33.3 mln dlr after-tax writedown of land and improvements, a 5.6 mln dlr increase in allowance for doubtful accounts and after-tax gain of three mln dlrs on debt retirement.  
VISTA ORGANIZATION LTD <VISA> YEAR NET. Shr profit one ct vs loss nine cts Net profit 177,061 vs loss 1,364,878 Revs 5,913,334 vs 487,121 Avg shrs 18.6 mln vs 15.9 mln  
TCA CABLE TV INC <TCAT> SETS QUARTERLY. Qtly div six cts vs six cts prior Pay April 23 Record April Nine  
REPUBLIC SAVINGS AND LOAN <RSLA> SETS DIVIDEND. Qtly div 30 cts vs 30 cts prior Pay April 27 Record April 13 NOTE: Company's full name is Republic Savings and Loan Association of Wisconsin.  
<THL HOLDINGS INC> YEAR JAN 31 NET. Oper net 94.4 mln vs 74.1 mln Revs 1.3 bilion vs 1.2 billion NOTE: THL is parent to SCOA Industries Inc, acquired in a leveraged buyout in December 1985.  
(GEOFFRION LECLERC INC) SIX MTHS NET. Shr 39 cts vs 26 cts Net 3,466,000 vs 1,913,000 Revs 27.7 mln vs 19.4 mln Note: period ended February 28. REUTER  
TOWLE MANUFACTURING CO <QTOW> YEAR LOSS. Oper shr loss 4.71 dlrs vs loss 14.09 dlrs Oper loss 22 mln vs loss 67.2 mln NOTE: 1986 loss excludes gain on the sale of Gold Lance Corp of 12.1 mln dlrs. Company is operating under chapter 11.  
SOUTH ATLANTIC FINANCIAL CORP <SOAF> 4TH QTR. Shr 12 cts vs 33 cts Net 699,037 vs 1,349,077 Year Shr 54 cts vs 55 cts Net 2,748,280 vs 1,833,766 NOTE: Per shr amounts reported after preferred stock dividend requirements.  
AMERICAN OIL AND GAS CORP <AOG> 4TH QTR LOSS. Shr loss 34 cts vs loss 2.14 dlrs Net loss 2,275,000 vs loss 9,560,000 Revs 17.0 mln vs 19.9 mln Year Shr loss 49 cts vs loss 2.11 dlrs Net loss 2,661,000 vs loss 9,283,000 Revs 73.5 mln vs 93.6 mln  NOTE: Results have been restated to reflects equity investment in WellTech Inc for one month ended Dec 31, 1986 and its investment in American Well Servicing for the 11 months ended Nov 30, 1986 and full year 1985. 1986 and 1985 net include loss of 3,512,000 dlrs and 5,944,000 dlrs, respectively, for equity in WellTech and predecessor operations.  
<NEWPARK RESOURCES INC> YEAR ENDED DEC 31 LOSS. Oper shr loss 1.99 dlr vs loss 4.88 dlrs Oper net loss 29.1 mln vs 70.8 mln Revs 34.8 mln vs 84.8 mln NOTE: 1986 and 1985 oper net excludes a loss of 5.5 mln dlrs or 37 cts a share and 64.6 mln dlrs or 4.43 dlrs a share, respectively, for discontinued operations. 1986 net also excludes a gain of 66.4 mln dlrs or 4.50 dlrs a share for credit on debt restructuring.  
TIERCO GROUP INC <TIER> YEAR ENDED DEC 31 LOSS. Shr loss 72 cts vs loss 1.57 dlr Net loss 1,526,359 vs loss 3,315,834 Revs 8,032,798 vs 7,276,517  
MICRODYNE CORP <MCDY> SETS PAYOUT. Semi div three cts vs three cts prior Pay June 12 Record May 15  
CROWNAMERICA INC <CRNA> 2ND QTR ENDED FEB 28. Shr two cts vs 29 cts Net 23,000 vs 338,000 Revs 20.2 mln vs 21.5 mln Six mths Shr 64 cts vs 97 cts Net 741,000 vs 1,113,000 Revs 43.2 mln vs 44.3 mln NOTE: 1986 2nd qtr and six mths ended March one.  
DIAMOND SHAMROCK <DIA> SEES BETTER 1987 EARNINGS. Diamond Shamrock Corp, which will split this month into two separate companies, expects to show improved earnings in 1987 over last year, executives of the new company told Reuters. Charles Blackburn, president and chief executive officer of Diamond Shamrock and the new company, which will emphasize exploration and production, said, "Earnings wil be better than in 1986." He declined to say how much better. In 1986 Diamond Shamrock reported a loss of 115.6 mln dlrs on total revenues of 2.543 billion dlrs. Exploration and production lost 18.5 mln dlrs on revenues of 593.5 mln dlrs. Roger Hemminghaus, Diamond Shamrock vice president and soon-to-be chief executive of the spin-off Diamond Shamrock Refining and Marketing Co, said, "Refining and marketing is a margin business. The margins will return and this will be a better year than 1986." In 1986, refining and marketing showed operating profits of 40.1 mln dlrs on revenues of 1.636 billion dlrs. "We are also expecting to be in the black in the first quarter (1987)," Heminghaus added. In the first quarter of 1986, the refining and marketing segment showed a loss of 27.1 mln dlrs on revenues of 492.1 mln dlrs.  The executives were in New york for meetings with institutional investors aimed at increasing interest in the company's stock. On the New York Stock Exchange, Diamond Shamrock was trading at 16-1/4, down 1/4. Earlier this year, T. Boone Pickens offered 15 dlrs a share for Diamond Shamrock, and management countered with an offer at 17 dlrs and a decision to split off the refining and marketing operation to its shareholders. "Our advisors convinced us the market would give higher multiples for pure plays," Blackburn said.  
VMS STRATEGIC <VLANS> SETS INITIAL DIVIDEND. VMS Strategic Land Trust said it delcared an initial quarterly cash dividend of 30 cts a share, payable May 15 to shareholders of record April 20. The company also said that effective today it will be trading on the NASDAQ system under the symbol <VLANS>.  
EQUICOR SEES YEAR REVENUES TO TOP TWO BILLION. Equicor, Equitable HCA Corp, said that the company will likely attain revenues in excess of two billion dlrs in its first year of operations. The company, created last October with initial equity of 400 mln dlrs, is owned equally by the Equitable Life Assurance Society of the U.S. and Hospital Corp of America <HCA>. Financial results for the first six months of the company's operations were not disclosed. Equicor provides employee group plans to 1,500 corporations nationwide. It said it aims to double its marketshare in five years from the about 3.5 pct of the employee benefits industry it controls.  
ARCO <ARC> UP ON HIGHER EARNINGS ESTIMATE. Atlantic Richfield Co's stock rose sharply after analyst Eugene Nowak of Dean Witter Reynolds Inc raised his earnings estmates of the company, traders said. ARCO jumped 1-3/4 to 81-3/4. Nowak said that based on an average oil price of 17 dlrs a barrel in 1987, the company should earn about 4.50 dlrs a share. Next year, based on an average oil price of 18 dlrs a barrel, ARCO should earn about five dlrs a share. The company earned 3.38 dlrs a share in 1986. "If oil prices should rise to an average of 20 dlrs a barrel," he said, "ARCO could record earnings of 6.50 dlrs a share. Nowak said his increased estimates come after the company told analysts yesterday that its first quarter earnings will comfortably cover its quarterly dividend requirement of one dlr a share. Nowak said, "The company has done an outstanding job reducing expenses, and ARCO is poised to generate greater earnings power." He said first quarter earnings will likely exceed the company's expectations stated yesterday and be in the 1.15-1.20 dlr-a-share range.  
BARNES GROUP <B> EXPECTS SALES TO GROW MODESTLY. Barnes Group said it expects sales and net income for 1987 will be up slightly over 1986. Without supplying specific figures, Barnes told shareholders at its annual meeting it expected net income to improve at a rate exceeding its growth in sales, which was two pct higher than 1985. The company said it recorded income from continuing operations of 16.6 mln dlrs, or 2.57 dlrs per share, on sales of 440 mln dlrs in 1986. It said it recorded income from continuing operations of 16.4 mln dlrs, or 2.27 dlrs per share, in the previous year.  
ROADWAY MOTOR PLAZAS INC 3RD QTR JAN 31. SHr two cts vs one cts Net 116,843 vs 41,400 Revs 17.3 mln vs 12.3 mln Nine months SHr 15 cts vs 10 cts Net 639,448 vs 301,000 REvs 37.6 mln vs 35.8 mln  
DIONICS INC <DION> YEAR NET. Shr seven cts vs 10 cts Net 127,000 vs 168,100 Revs 2,807,400 vs 3,042,900  
WINN-DIXIE STORES INC <WIN> SETS MONTHLY PAYOUT. Mthly div 15 cts vs 15 cts prior Pay April 30, May 29, June 24 Record April 15, May 15, June 10  
WAXMAN INDUSTRIES INC <WAXM> REGULAR PAYOUT. Qtly div class A two cts vs two cts prior Qtly div class B one ct vs one ct prior Pay April 17 Record April 10  
WALKER TELECOMMUNICATIONS CORP <WTEL> 4TH QTR. Shr loss 58 cts vs loss nil Net loss 2.9 mln vs loss 17,818 Revs 5.0 mln vs 7.4 mln Year Shr loss 45 cts vs profit four cts Net loss 2.0 mln vs profit 174,562 REvs 28.5 mln vs 25.2 mln  NOTE:1986 4th qtr loss includes loss of 2.2 mln dlrs from discontinuance of operations. 1985 4th qtr includes loss of 79,395 dlrs from discontinued operations. 1986 4th qtr includes 3.5 mln dlr provision for costs anticipated in connection with disposal of division and 500,000 dlrs in adjustments related to write-downs. 1985 4th qtr includes gain of 178,000 dlrs for exchange of telephone inventory for barter credits.  
BROKERS SECURITIES INC <BKRS> 4TH QTR LOSS. Shr loss 16 cts vs profit 23 cts Net loss 97,600 vs profit 91,980 Revs 302,745 vs 359,699 Avg shrs 621,036 vs 388,536 Year Shr profit seven cts vs profit 36 cts Net profit 36,400 vs profit 140,980 Revs 1,610,286 vs 763,071 Avg shrs 512,235 vs 388,536  Note: Year-ago net includes extraordinary gains of 33,654 for qtr and 42,654 for the year.  
FIRST WORLD CHEESE INC <FWCH> 4TH QTR LOSS. Shr loss 15 cts vs profit nil Net loss 392,428 vs profit 1,255 Revs 6,371,092 vs 3,031,091 Avg shrs 2,544,000 vs 1,440,000 Year Shr loss 13 cts vs profit seven cts Net loss 274,951 vs profit 100,534 Revs 18.1 mln vs 10.8 mln Avg shrs 2,072,153 vs 1,440,000  
A.G. EDWARDS INC <AGE> 4TH QTR FEB 28 NET. Shr 81 cts vs 63 cts Net 16,900,000 vs 13,100,000 Revs 152.5 mln vs 118.1 mln Year Shr 2.59 dlrs vs 1.85 dlrs Net 53,700,000 vs 38,100,000 Revs 526.3 mln vs 404.3 mln NOTE: Prior year earnings reflect a three-for-two stock split distributed in May, 1986  
CONOLOG CORP <CNLG> 2ND QTR JAN 31 NET. Shr two cts vs two cts Net 69,831 vs 107,773 Revs 1,068,905 vs 2,401,518 Six mths Shr three cts vs three cts Net 129,649 vs 155,089 Revs 2,673,141 vs 4,666,104  
STARRETT HOUSING CORP <SHO> 4TH QTR NET. Oper shr 20 cts vs eight cts Oper net 1,869,000 vs 957,000 Revs 41.0 mln vs 22.9 mln Year Oper shr 52 cts vs 53 cts Oper net 5,386,000 vs 5,147,000 Revs 116.8 mln vs 98.3 mln Note: Oper excludes extraordinary reserves related to arbitration of Iranian claims of 2,062,000 vs 3,200,000 for qtr and year.  
GAC LIQUIDATING TRUST <GACTZ> SETS CASH PAYOUT. Unit distribution one dlr vs 1.75 dlrs prior pay June one Record May one Note: Prior distribution declared in April 1986.  
WRATHER CORP <WCO> 4TH QTR LOSS. Shr loss 53 cts vs loss 55 cts Net loss 3,865,000 vs 3,963,000 Revs 24.2 mln vs 26.8 mln Year Shr loss 1.21 dlrs vs profit 56 cts Net loss 8,758,000 vs profit 4,040,000 Revs 108.5 mln vs 113.8 mln  Note: Prior qtr figures include income from discontinued operations of 10,000 dlrs, gain on disposal of discontinued operations of 269,000 dlrs, or four cts per share, and operating loss carryforward gain of 936,000 dlrs, or 13 cts per share. Prior year figures include income from discontinued operations of 164,000 dlrs, or two cts per share, gain on disposal of discontinued operation of 3.9 mln dlrs, or 54 cts per share, and operating loss carryforward gain of 3.7 mln dlrs, or 48 cts per share.  
MURPHY OIL CORP <MUR> SETS REGULAR DIVIDEND. Qtly div 25 cts vs 25 cts prior Pay June one Record May 15  
MULTIBANK FINANCIAL CORP <MLTF> IN PAYOUT. Qtly div 13 cts vs 13 cts prior Pay April 20 Record April 10  
CONVEST ENERGY PARTNERS LTD <CEP> 4TH QTR LOSS. Shr loss 2.65 dlrs vs loss 2.31 dlrs Net loss 14.3 mln vs loss 12.5 mln Revs 2,887,000 vs 5,321,000 Year Shr loss 4.38 dlrs vs loss 2.50 dlrs Net loss 23.7 mln vs loss 13.5 mln Revs 13.2 mln vs 22.4 mln NOTE: 1986 net includes oil and natural gas writedowns of 12.1 mln dlrs in quarter and 19.0 mln dlrs in year.  
<DYLEX LTD> YEAR JAN 31 NET. Shr 51 cts vs one dlr Net 25.1 mln vs 46.8 mln Sales 1.21 billion vs 1.08 billion Note: 1986 excludes extraordinary gain of 1.1 mln dlrs, or two cts per share, from public issue of affiliate's shares.  
INTERNATIONAL SEAWAY TRADING CORP <INS> YEAR. Oper shr 64 cts vs 97 cts Oper net 845,000 vs 1,285,000 Revs 20.0 mln vs 23 mln NOTE: 1986 and 1985 oper net excludes gain of 315,000 dlrs and 585,000 dlrs, respectively, for extraordinary item.  
CALLON PETROLEUM CO <CLNP> 4TH QTR LOSS. Shr loss 40 cts vs loss 4.72 dlrs Net loss 3,321,000 vs loss 42.0 mln Revs 4,002,000 vs 7,788,000 Avg shrs 9,168,522 vs 8,974,355 Year Shr loss 4.20 dlrs vs loss 4.71 dlrs Net loss 37.2 mln vs loss 41.1 mln Revs 18.4 mln vs 34.1 mln Avg shrs 9,168,522 vs 8,991,184  
COUNTY SAVINGS BANK <CSBA> SETS STOCK DIVIDEND. County Savings Bank said its board declared a five pct stock dividend, payable April 10 to shareholders of record today.  
BANKAMERICA <BAC> TO POST GAIN ON UNIT SALE. BankAmerica Corp said it completed the sale of its Consumer Trust Services division to Well Fargo and Co <WFC>, a transaction that will result in a second quarter pre-tax gain of more than 75 mln dlrs. The sale will not affect the services the bank will continue providing to institutional customers through its Employee Benefit Trust Services Division, BankAmerica also said. In a separate announcement, Wells Fargo said the acquisition will increase the amount of personal trust assets it administers to 25 billion dlrs. Last December BankAmerica and Wells Fargo announced a definitive agreement on the sale at a price of about 100 mln dlrs, subject to adjustment.  
CIRO INC <CIRI> YEAR. Shr loss three cts vs profit 16 cts Net loss 119,000 vs profit 637,000 Revs 17.5 mln vs 15.8 mln  
HELM RESOURCES INC <H> 4TH QTR LOSS. Oper shr loss two cts vs loss 13 cts Oper net loss 236,000 vs loss 1,131,000 Revs 26.6 mln vs 26.3 mln Year Oper shr profit two cts vs loss 15 cts Oper net profit 286,000 vs loss 1,292,000 Revs 105.3 mln vs 95.3 mln NOTE: Net excludes discontinued operations gain 20,000 dlrs vs loss 1,291,000 dlrs in quarter and gain 60,000 dlrs vs loss 1,590,000 dlrs in year. Net excludes extraordinary loss 38,000 dlrs vs gain 1,941,000 dlrs in quarter and gains 162,000 dlrs vs 1,941,000 dlrs in year. 1986 net both periods includes writedowns of 290,000 dlrs of oil-related seismic data.  
<SASCO PRODUCTS INC> YEAR LOSS. Shr loss eight cts vs profit four cts Net loss 365,430 vs profit 165,508 Revs 5,577,244 vs 4,643,803 NOTE: 1986 net includes nonrecurring expenses of 408,518 dlrs.  
PENTA SYSTEMS INTERNATIONAL INC <PSLI> 4TH QTR. Shr loss six cts vs loss 76 cts Net loss 343,748 vs loss 4.0 mln Revs 5.1 mln vs 4.8 mln Year Shr profit 12 cts vs loss 1.45 dlr Net profit 611,784 vs loss 7.7 mln Revs 21.6 mln vs 19.7 mln  
CONTROL RESOURCE INDUSTRIES INC <CRIX> 4TH QTR. Shr loss five cts vs profit eight cts Net loss 152,000 vs profit 214,000 Revs 6.2 mln vs 2.4 mln Year Shr profit 22 cts vs profit 33 cts Net profit 809,000 vs 853,000 Revs 22.4 mln vs 7.9 mln  
AMERICAN WATER WORKS CO INC <AWK> SETS PAYOUT. Qtly div 32 cts vs 32 cts prior Pay May 15 Record May One  
HUNT MANUFACTURING CO <HUN> SETS PAYOUT. Qtrly div 11 cts vs 11 cts Pay April 21 Record April 10  
PITTSBURGH AND WEST VIRGINIA RAILROAD <PW> NET. 4th qtr Shr 14 cts vs 14 cts Net 210,000 vs 211,000 Revs 230,000 vs 229,000 Year Shr 56 cts vs 56 cts Net 838,000 vs 841,000 Revs 919,000 vs 919,000  
NISSAN MOTOR <NSANY> SEES SECOND HALF PROFIT. Nissan Motor Co Ltd of Japan said it expects that it was profitable in the second half ended yesterday after a first half operating loss of 17 billion yen. Nissan chief financial officer Atsushi Muramatsu, in a speech before an automotive seminar, said he attributed the improvement to cost reductions and rationalizations of operations. He said if exchange rates stabilize, Nissan will have a strong profit recovery in fiscal 1988 and profits for fiscal 1989 better than those before the yen started advancing. Muramatsu said Nissan is studying the possibility of setting up its own finance company to improve access to U.S. and European capital markets.  
GEOFFRION LECLERC FORECASTS RESULTS. (Geoffrion Leclerc Inc), in reporting sharply higher earnings for the six months ended February 28, said it expects third quarter results to continue at a strong pace and approximate the preceding quarters. The brokerage firm earlier reported six month profit rose to 3.5 mln dlrs from 1.9 mln dlrs last year. It did not detail second quarter profit.  
KAUFMAN AND BROAD INC <KB> 1ST QTR FEB 28 NET. Shr 41 cts vs 17 cts Net 8,824,000 vs 4,555,000 Revs 301.9 mln vs 196.4 mln Avg shrs 17,644,000 vs 16,085,000  
KAUFMAN AND BROAD INC <KB> 1ST QTR FEB 28 NET. Shr 41 cts vs 17 cts Net 8,824,000 vs 4,555,000 Revs 301.9 mln vs 196.4 mln NOTE: Housing backlog 135 mln dlrs, up over 33 pct from a year earlier.  
CSX CORP <CSX> 1ST QTR NET. Shr 47 cts vs 56 cts Net 73.0 mln vs 85.0 mln Revs 1.89 billion vs 1.69 billion NOTE: figures reflect the merger of Sea-Land Corp completed Feb 11, 1987.  
SNET <SNG> SEES GOOD 1987 EARNINGS. Southern New England Telecommunications Corp, SNET, said it expects to have good earnings in 1987 against 4.46 dlrs per share or 139.2 mln dlrs in 1986. The company also said it expects capital spending to rise to about 355 mln dlrs in 1987, up from 289 mln dlrs a year ago. However, senior vice president of finance Daniel Miglio told a meeting of analysts that there was some uncertainty in its earnings outlook because SNET is currently involved in negotiations with state regulators on its rate of return on equity which currently stands at 16.2 pct. The company also said it expects its SNET Systems business, which is composed of some of its non-regulated businesses, to be profitable by the end of the year.  
NOLAND CO <NOLD> SETS QUARTERLY. Qtly div 10 cts vs 10 cts prior Pay April 24 Record April 14  
HARTMARX CORP <HMX> 1ST QTR FEB 28 NET. Shr 54 cts vs 40 cts Net 11,105,000 vs 8,310,000 Sales 282.7 mln vs 290.3 mln Avg shrs 20,599,000 vs 20,760,000 NOTE: Per-share results restated for May 1986 three-for-two stock split  
TOLL <TOL> IN STOCK SPLIT, PUBLIC OFFERING. Toll Brothers Inc said it declared a two-for-one split of its common stock and said it filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 5,700,000 shares of common as adjusted for the split. The record date for the split is April 10, and certificates representing the additional shares will be mailed April 20. The company said its stock price will be adjusted to reflect the split on April 21.  
NATIONAL ROYALTY CORP <NROC> 4TH QTR LOSS. Shr loss 22 cts vs loss 20 cts Net loss 2,127,334 vs loss 1,629,432 Revs 1,306,658 vs 1,091,023 Avg shrs 9.7 mln vs 8 mln Year Shr loss 36 cts vs loss 35 cts Net loss 3,519,251 vs loss 2,805,569 Revs 5,081,953 vs 4,410,954 Avg shrs 9.8 mln vs 8.1 mln  
HI-PORT INDUSTRIES INC <HIPT> 4TH QTR NET. Oper shr 29 cts vs eight cts Oper net 222,143 vs 76,605 Revs 4,872,279 vs 3,276,404 12 mths Oper shr 17 cts vs 28 cts Oper net 111,280 vs 301,623 Revs 13.9 mln vs 11.1 mln NOTE: 1986 yr figures excludes extraordinary item of 574,363 dlrs, or 60 cts per share, for termination of its non contributory pension plan. 1985 yr figures excludes 537,950 dlrs, or 42 cts per share, representing insurance proceeds from a fire that occurrred in 1983.  
<SYSTEMS FOR HEALTH CARE INC> YEAR LOSS. Shr loss 33 cts vs nil Net loss 603,430 vs profit 4,295 Revs 748,628 vs 5,730 NOTE: Per-share results give retroactive effect to one-for-50 reverse stock split in March 1987 1986 loss includes recurring expenses of 317,062 dlrs related to acquisitions and initial advertising campaigns  
LE PEEP RESTAURANTS INC <LPEP> 4TH QTR LOSS. Shr loss 27 cts vs loss 81 cts Net loss 998,764 vs loss 1,491,590 Revs 2,712,614 vs 1,237,850 Avg shrs 3,727,063 vs 1,838,294 Year Shr loss 1.79 dlr vs loss 2.11 dlrs Net loss 4,559,004 vs loss 3,882,235 Revs 8,510,004 vs 3,720,640 Avg shrs 2,544,271 vs 1,838,294  
TOWLE MANUFACTURING CO <QTOW> 4TH QTR OPER LOSS. Oper shr loss 1.10 dlrs vs loss 8.63 dlrs Oper net loss 5.1 mln vs loss 42.1 mln Revs 23.1 mln vs 63.3 mln Year Oper shr loss 4.71 dlrs vs loss 14.09 dlrs Oper net loss 22.0 mln vs loss 67.2 mln Revs 114.6 mln vs 221.8 mln Avg shrs 4,910,330 vs 4,851,650 NOTE: Current year excludes gain of 12.1 mln dlrs from disposal of discontinued operations. Shr figures after preferred dividend requirements.  
STRAWBRIDGE AND CLOTHIER <STRW> 4TH QTR NET. Shr 2.02 dlrs vs 1.94 dlrs Net 14.7 mln vs 13.9 mln Revs 265.6 mln vs 235.1 mln Year Shr 2.83 dlrs vs 3.36 dlrs Net 20.7 mln vs 24.1 mln Revs 739.1 mln vs 686.9 mln NOTE: Current year includes loss equal to 12 cts/shr from takeover defense and loss of 13 cts from loss of investment tax credits.  
ROBERT BRUCE INDUSTRIES INC <BRUCA> YEAR LOSS. Shr loss 3.31 dlrs vs profit 94 cts Net loss 6,073,000 vs profit 1,823,000 Revs 58.9 mln vs 69.2 mln  
BANKAMERICA SAYS 1ST QTR NET TO BE CUT BY 40 MLN DLRS DUE. TO BRAZILIAN LOANS  BANKAMERICA SAYS 1ST QTR NET TO BE CUT BY 40 MLN DLRS DUE TO BRAZILIAN LOANS  
BANKAMERICA SAYS IT EXPECTS TO REPORT A PROFIT FOR. FIRST-QUARTER 1987  BANKAMERICA SAYS IT EXPECTS TO REPORT A PROFIT FOR FIRST-QUARTER 1987  
STRAWBRIDGE <STRW> DECLARES STOCK DIVIDEND. Strawbridge and Clothier said its board declared a seven pct stock dividend, payable May 14 to holders of record April 14. Earlier, the company reported net income of 20.7 mln dlrs.  
LAIDLAW DECLARES THREE FOR TWO SPLIT, BOOSTS PAYOUT to. 5-1/4 CTS/SHR FROM FOUR CTS  LAIDLAW DECLARES THREE FOR TWO SPLIT, BOOSTS PAYOUT to 5-1/4 CTS/SHR FROM FOUR CTS  
TRANSDUCER SYSTEMS INC YEAR. Shr profit 12 cts vs loss 49 cts Net profit 117,000 vs loss 506,000 Revs 1.1 mln vs 1.2 mln Year Shr profit seven cts vs loss 89 cts Net profit 66,000 vs loss 921,000 Revs 4.4 mln vs 3.9 mln NOTE:1986 reflects tax benefit of 24,000. 1985 reflects tax benefit of 186,000 for quarter and 573,000 for year.  
LAIDLAW TRANSPORTATION LTD <LDMFA> 2ND QTR NET. period ended February 28 Shr 26 cts vs 14 cts Net 28.4 mln vs 15.2 mln Revs 305.7 mln vs 179.6 mln Six mths Shr 50 cts vs 28 cts Net 54.6 mln vs 30.3 mln Revs 586.2 mln vs 359.8 mln Avg shrs 100,362,000 vs 91,360,000  
LAIDLAW <LDMFA> SPLITS STOCK, HIKES PAYOUT. Three for two stock split Pay and record date subject to shareholder confirmation May four Qtly dividend 5-1/4 cts vs four cts Pay May 15 Record May one Note: dividends declared on pre-split shares. Laidlaw Transportation Ltd  
J.P. MORGAN SAYS BRAZIL ACTION WILL REDUCE FIRST QUARTER. NET BY ABOUT 20 MLN DLRS  J.P. MORGAN SAYS BRAZIL ACTION WILL REDUCE FIRST QUARTER NET BY ABOUT 20 MLN DLRS  
HOUSTON INDUSTRIES INC <HII> INCREASES DIV. Qtly div 72 cts vs 70 cts prior Payable June 10 Record May 15  
CENTURY BUSINESS CREDIT CORP <CTY> 4TH QTR. Shr 39 cts vs 31 cts Net 232,991 vs 198,185 Revs 2.9 mln vs 2.3 mln Year Shr 2.20 dlrs vs 1.12 dlrs Net 1.3 mln vs 715,113 Revs 11.3 mln vs 10.1 mln NOTE:1986 revs includes 260,000 dlr finder's fee , net includes 112,000 gain from sale of securities, 115,000 dividends, 78,000 dlrs from lease recalculations. 1985 revs includes 700,000 finder's fee and 75,000 gain from sale of asset.  
GENCORP TAKES NO ACTION ON STOCK DIVIDEND. Gencorp Inc said its board took no action with respect to a two pct stock dividend at its annual meeting yesterday due to the press of other business, specifically the company's pending takeover offer by General Acquisition Corp, formed by AFG industries inc and Wagner and brown. A spokesman said the two pct stock dividend, normally issued everly year, was not issued in February because the company was examining other dividend alternatives. Management said it would give consideration to this matter at a later time. Yesterday, the company's chairman, A. William Reynolds, told shareholders he would be presenting an alternative to the 100 dlrs a share takeover offer within a week.  
MORGAN <JPM> PLACES BRAZIL LOANS ON NONACCRUAL. J.P. Morgan and Co Inc, parent of Morgan Guaranty Trust Co of New York, said that it will place 1.3 billion dlrs of medium- and long-term loans to Brazil on a non-accrual basis, matching similar action by BankAmerica Corp <BAC> earlier today. The move, which follows Brazil's suspension of interest payments on 68 billion dlrs of commercial bank debt on February 20, is expected to reduce first quarter net income by about 20 mln dlrs, of which four mln dlrs represents interest accrued prior to 1987 but still uncollected, the bank said. Morgan earned 233.9 mln dlrs in the first quarter of 1986. Morgan also said that, based on current interest rates and assuming cash interest payments are not received for the rest of the year, 1987 net income would be reduced by about 72 mln dlrs. 1986 net income was 872.5 mln dlrs. Although U.S. banks do not have to put loans on nonaccrual until they are over 90 days past due, Morgan said some of the loans affected by the Brazil payment freeze may reach the 90-day limit during the second and third quarters. Morgan said it assumes talks between Brazil and commercial bank lenders will proceed "expeditiously" and interest payments will resume at the earliest practicable date.  
JEM RECORD INC <JEMR> 2ND QTR JAN 31. Shr three cts vs seven cts Net 52.1 mln vs 112,713 Revs 5.1 mln vs 4.4 mln Six months Shr five cts vs 15 cts Net 75,605 vs 244,119 Revs 9.5 mln vs 9.5 mln  
BELDEN AND BLAKE ENERGY CO <BBE> 4TH QTR. Shr loss 1.92 dlrs vs profit five cts Net loss 5.6 mln vs profit 136,598 Revs 1.4 mln vs. 2.5 mln Year Shr loss 3.81 dlrs vs profit 21 cts Net loss 10.8 mln vs profit 435,176 Revs 7.6 mln vs 9.4 mln NOTE:1986 4th qtr includes write-off of about 373,000 dlrs or 13 cts and writdown of assets of 4.0 mln dlrs. 1986 year includes 4.1 mln dlrs 1st qtr writedown.  
LIVINGWELL INC <WELL> YEAR. Shr six cts vs three cts Net 1.7 mln vs 3.1 mln Revs 187.3 mln vs 129.7 mln NOTE:Increase in earnings due to elimination of preferred dividend requirements.  
SUNSTATES CORP <SUST> 4TH QTR. Shr loss 3.51 dlrs vs loss 6.14 dlrs Net loss 3.2 mln vs loss 6.6 mln Year Shr loss 2.38 dlrs vs loss 5.17 dlrs Net loss 692,872 vs loss 4.5 mln NOTE:1986 loss includes loss of 301,000 for discontinued oeprations vs a loss of 5.5 mln dlrs net of a 1.4 mln credit in 1985. 1985 4th qtr includes loss of 3.5 mln dlrs for discontinued operations. share amts relfect dividend requirements.  
<BII ENTERPRISES INC> YEAR NOV 30 NET. Shr 86 cts vs 79 cts Net 4,042,000 vs 3,549,000 Revs 59.7 mln vs 47.3 mln  
<SCOTTISH AND YORK HOLDINGS LTD> YEAR LOSS. Shr loss 27 cts vs loss 2.27 dlrs Net profit 2,150,000 vs loss 14,700,000 Revs 121.3 mln vs 69.8 mln Note: shr after payment of preferred stock dividends  
SAVOY INDUSTRIES INC <SAVO> YEAR. Shr loss 42 cts vs loss five cts Net loss 4.0 mln vs loss 446,000 Revs 58.9 mln vs 70.3 mln NOTE:1986 net includes gain of 40 cts from discontinued operations. 1985 net includes gain of 22 cts from discontinued operations.  
AMERICAN HOIST AND DERRICK CO <AHO> 1ST QTR NET. Qtr ended March 14. Shr profit 32 cts vs loss 1.30 dlrs Net profit 2,704,000 vs loss 7,589,000 Rev 105.2 mln vs 82.3 mln NOTE: Qtr net includes extraordinary gain of 1.1 mln dlrs.  
MR. GASEKT CO <MRGC> 3RD QTR DEC 31. Shr loss 26 cts vs profit eight cts net loss 2.8 mln vs profit 897,000 Revs 27.0 mln vs 30.0 mln Nine months Shr loss 51 cts vs profit 46 cts Net loss 5.4 mln vs profit 4.9 mln Revs 88.4 mln vs 99.8 mln  
DELTAUS CORP <DLTA> YEAR. Shr loss 64 cts vs loss 1.70 dlrs Net loss 13.4 mln vs loss 35.6 mln REvs 47.9 mln vs 72.1 mln NOTE:1985 includes loss of 941,000 from discontinued operations and 5.8 mln dlrs from disposal of net asset solds.  
DEROSE INDUSTRIES INC <DRI> 4TH QTR. Shr loss 56 cts vs loss 71 cts Net loss 809,000 vs loss 1.0 mln Revs 5.3 mln vs 5.3 mln Year Shr loss 1.51 dlrs vs profit 61 cts Net loss 2.2 mln vs loss 2.3 mln Revs 26.5 mln vs 29.1 mln  
REVLON GROUP <REV> REPORTS 1986 RESULTS. Revlon Group Inc told the Securities and Exchange Commission it had net profits of 16,465,000 on sales of 1.61 billion dlrs for the year ended Dec. 31, 1986. Revlon in a filing with the SEC compared the results to the five months ending Dec. 31, 1985. In that period, it lost 28.4 mln dlrs on sales of 262.4 mln dlrs. Earlier today, MacAndrews and Forbes Group Inc began an 18.50 dlr a share cash offer for all common stock of Revlon it does not own. Revlon today rose 3/8 to 19-1/4 in active trading. MacAndrews controls 31.8 pct of the voting power.  For 1986, Revlon said the loss applicable to common stock after preferred dividends is 9.5 mln dlrs. The net loss per share was 24 cts, compared to a net loss of 99 cts per share last year. Revlon said it had a 1986 operating profit of 64.3 mln dlrs, compared to a loss of 13.3 mln dlrs in the year earlier period. The 1986 net includes a provision for estimated loss on dispositions of 57.0 mln dlrs, compared to 15.1 mln dlrs the year earlier. Earnings in 1986 before extraordinary items were 7.4 mln dlrs.  
MANUFACTURERS <MHC> PUTS BRAZIL ON NON-ACCRUAL. Manufacturers Hanover Corp said it placed 1.4 billion dlrs of medium- and long-term loans to Brazilian borrowers on non-accrual as of yesterday, meaning that income will be recorded only when actual cash payments are received. As a result, net income for the first quarter will be reduced by 18 mln dlrs. If Brazil, which suspended interest payments on its term debt on February 20, continues to defer interest payments for the rest of the year, net income for the whole of 1987 would be reduced by a total of 72 mln dlrs. U.S. bank accounting guidelines do not require loans to be placed on nonaccrual unless interest payments are past due 90 days or more.  However, Manufacturers Hanover said that, in light of current circumstances, it was more appropriate to record income on its Brazilian loans only when cash payments were received. It added that it believes Brazil will reach agreement with its banks on a debt restructuring and that all interest payments will be received later in 1987. The company earned 102.1 mln dlrs in first-quarter 1986 and 410.7 mln dlrs for the whole of the year.  
<OCELOT INDUSTRIES LTD> YEAR LOSS. Shr loss 15.29 dlrs vs loss 2.80 dlrs Net loss 221.3 mln vs loss 40.4 mln Revs 146.3 mln vs 260.7 mln Note: 1986 loss includes extraordinary loss of 171.6 mln dlrs or 11.85 dlrs shr related to writedown of certain petrochemical assets and reduced by tax gain of 4.2 mln dlrs or 28 cts shr. 1985 results restated.  
DEUTSCHE BANK SEES SLOW START TO 1987. Deutsche Bank AG <DBKG.F> has seen a slow start to 1987 after posting record profits in 1986, management board joint spokesman F. Wilhelm Christians said. Credit business declined in the first few weeks of the year, and the interest margin was squeezed further. The weak German bourse saw earnings on commission fall sharply, and trading in securities also fell. But earnings from currency dealing were still satisfactory, he told a news conference. Deutsche group partial operating profits rose to 3.78 billion marks in 1986 from 2.92 billion in 1985 on a balance sheet of 257.22 billion marks after 237.23 billion. Profits were swollen by earnings from the placement of the former Flick group, which have been estimated at some one billion marks, and from record profits in trading on the bank's own account, not included in partial operating profits. Earnings from the Flick transaction were booked through a subsidiary, and therefore showed up as part of the interest surplus in a section current earnings from securities and participations. In the group this nearly doubled to 2.64 billion marks from 1.45 billion. As usual the bank did not detail total operating profits. But it said that total operating profits, including own account trading, rose 24.9 pct or 4.5 pct without the Flick transaction in the group, and 35.1 pct or seven pct in the parent bank. Banking analysts said this put group total operating profits at some 6-1/2 to seven billion marks, and parent bank operating profits at over five billion marks. Christians said Deutsche used the extraordinary earnings from Flick to pay a record five mark bonus on top of its unchanged 12 mark dividend. The bank had decided against raising the dividend itself because of the uncertain business outlook at the end of 1986, and developments so far this year showed that was correct, Christians said. West German banks rarely raise dividends unless they are sure they can maintain the increased payout in subsequent years, preferring to use bonuses for one-of profits. The bank also used its extraordinary earnings to continue a high level of risk provision, Christians said. Disclosed group risk provisions rose to 867 mln marks in 1986 from 765 mln in 1985. Under German law, disclosed provisions do not necessarily reflect the full amount of risk provisions. Management board joint spokesman Alfred Herrhausen said Deutsche's total debt exposure to problem countries had fallen to over six billion marks in 1986 from 7.4 billion in 1985 because of the fall in the dollar. He agreed with a questioner who asked if over two thirds of such problem country debt had been written off. Deutsche Bank posted a sharp rise in holdings of "other securities," to 4.64 billion marks from 2.71 billion in the parent bank. Christians said this 1.93-billion-mark rise was partly due to its increased activity in international share placements, with some shares such as those from Fiat SpA's international placement last year remaining on its books. Herrhausen said that no concrete measures were planned to place these shares and conclude the original placement.  
SINGAPORE BANKS SAY DIVERSIFICATION KEY TO GROWTH. Singapore's major banks are diversifying and gradually shifting their asset holdings from loans to debt instruments, banking sources said. The banks following the trend are the <Overseas Union Bank Ltd>, <United Overseas Bank Ltd>, <Oversea-Chinese Banking Corporation> and the <Development Bank of Singapore Ltd>. The shift towards securitisation has been helped by volatile financial markets which have developed hedging facilities such as floating rate notes and bonds for risk management, said Overseas Union General Manager Loh Hoon Sun. Loh told Reuters in an interview that Singapore banks see limited growth in credit risk. More and more of them are switching from term lending to major growth areas such as stockbroking and fee based income, he said. Major local banks ventured into stockbroking after being granted seats on the stock exchange. Bankers said they are now moving into the new government securities market and the Stock Exchange of Singapore Dealing and Quotation System. One foreign banker said the Development Bank and the Overseas Union Bank Ltd have become major players in the equity market in Singapore. Loh said the banks' participation in the stock market has increased business transactions and provided long term growth for the market. The banks are not competition for individual stockbroking firms because of the increased business they generate, he added. Loh said the Stock Exchange of Singapore might expand equity issues by as much as one billion dlrs this year because of the increasing ability of foreign and local market participants to absorb new issues. Loh said <OUB Investment management Ltd>, a subsidiary of the Overseas Union Bank Ltd, has teamed up with a U.K. Firm to launch the Union Global Fund. The fund is for local investors seeking capital growth through a diversified international portfolio. It will invest in international shares with the emphasis on U.S. And Japanese markets, he said. <DBS Securities Singapore Pte Ltd>, a subsidiary of the Development Bank of Singapore, has applied to the Hong Kong Stock Exchange to set up a Hong Kong stockbroking firm. Loh predicted fixed deposit and prime interest rates in Singapore will stay low this year. As a result, banks will be forced to provide fund management services for major clients seeking better returns, he said. Economic analysts and bankers are optimistic the major banks will show profits in 1987, helped by higher income from treasury and investment banking activities. They expect the 1987 after-tax profits of Oversea-Chinese and United Overseas to show stable growth of four to eight pct against respective gains of four and seven pct in 1986. Overseas Union's profits are expected to jump to over 40 mln dlrs from seven mln dlrs in 1986, economists said. The Development Bank's after-tax profits rose 39.2 pct in 1986 mainly due to a dividend of 20.4 mln dlrs paid by <National Discount Company Ltd> before it became a subsidiary of the bank, they said.  
SANWA BANK LOOKS TO SECURITIES, WORLD OPERATIONS. The <Sanwa Bank Ltd's> three-year business plan foresees securities and international operations making a greater contribution to operating profits, a bank official said. The bank's plan also emphasises retail and medium and small-sized business operations, he told Reuters. Officials at <Fuji Bank Ltd> and <Mitsubishi Bank Ltd> outlined similar three-year plans. They said lower interest rates and financial liberalisation have cut profits from dealings with big firms to nearly nothing. "They don't need us, they can do their own financing," one official said. Sanwa Bank's plan forecasts that securities and international operations will contribute 40 pct of total operating profits by the end of the fiscal year ending March, 1990, compared with 30 pct in fiscal 1985, the Sanwa official said.  
Reckitt and Colman plc pretax profits 1986 yr 145.11 mln stg vs 123.39 mln.  Reckitt and Colman plc pretax profits 1986 yr 145.11 mln stg vs 123.39 mln  
Bayer world group 1986 pre-tax profit 3.30 billion marks (3.15 billion) - official.  Bayer world group 1986 pre-tax profit 3.30 billion marks (3.15 billion) - official  
BAYER CONFIDENT OF POSTING GOOD 1987 RESULTS. Chemicals group Bayer AG <BAYG.F> said it expects to post another good result in 1987 after raising pre-tax profit to a new record high in 1986. The company said that this was despite the mark's further strengthening against the dollar and other currencies and despite an increase in competitive pressure. "The further progress of our business will depend largely on the extent to which threats to free trade materialise and on the developments of exchange rates, raw material and energy costs. Bayer said world group pre-tax profit rose to 3.30 billion marks in 1986, exceeding the previous year's record of 3.15 billion. Parent company pre-tax profit increased to 1.72 billion from 1.62 billion. The company gave no net profit figures or any indication of the likely 1986 dividend. Bayer paid a 10-mark dividend on 1985 results, up one mark from a year earlier. Bayer said that world group operating profit declined slightly in 1986 against 1985 but non-operating results showed a further improvement. Bayer said that the decline in world group turnover to 40.75 billion marks from 45.93 billion in 1985 reflected mainly the sharp fall in the dollar against the mark. Lower prices on the raw material side had also brought pressure on selling prices, it added. In volume terms, however, 1986 sales rose slightly against 1985, the company said without giving details. "The western Europe, North America and Far East regions developed well in local currency, but here too the translation of local currency sales into marks distorted the picture, especially in the case of North America," it said. Bayer said parent company volume sales were also higher in 1986, although turnover fell 4.3 pct to 16.77 billion marks. Capacity use was high at the parent company in 1986, resulting in a decline in marginal unit costs. This, combined with savings in raw material and energy costs, helped offset falling prices and cost increases in other areas. The rise in pre-tax parent company profit was due to lower extraordinary expenses and higher net interest income. Plastics, organic chemicals, polyurethanes and coating raw materials all developed well, it said. Turning to the 1986 fourth quarter, Bayer said that world group turnover fell to 9.67 billion marks in the last three months of 1986 from 10.43 billion in the same 1985 period. Parent company turnover in the fourth quarter fell 7.1 pct to 3.69 billion marks, with domestic turnover 4.1 pct lower and foreign turnover 8.6 pct lower. Exports accounted for 65.3 pct of turnover in the quarter against 66.4 pct in the same quarter of 1985.  
NV HOOGOVENS 1986 NET PROFIT 154.6 MLN GUILDERS VS 278.8 MLN -- OFFICIAL.  NV HOOGOVENS 1986 NET PROFIT 154.6 MLN GUILDERS VS 278.8 MLN -- OFFICIAL  
HOOGOVENS EXPECTS CLEAR LOSS IN 1987. <Koninklijke Nederlandsche Hoogovens en Staalfabrieken NV> said it expected a "clear loss" for 1987. The company reported its 1986 profits were 44 pct lower at 154.6 mln guilders than in the year before. Turnover was 18 pct lower than in 1985. The main reason fo the fall in turnover was the lower rate of the dollar, the company said. The lower costs for raw materials and energy, resulting from the lower dollar, could not compensate the fall in revenues. Costs 5.61 billion guilders vs 6.66 billion Depreciation 457 mln vs 493 mln Operating profit 375 mln vs 598 mln Financial charges 155.1 mln vs 169.4 mln Extraordinary loss 12 rpt 12 mln vs 138 mln Crude steel production five mln tonnes vs 5.3 mln Aluminium production 96,000 tonnes vs same.  
INTERNATIONAL TECHNOLOGY <ITX> SEES 4TH QTR LOSS. International Technology corp said it expects to report a loss for the fourth quarter ended March 31 of about 20 cts per share, compared with a year-earlier profit of 11 cts. The company blamed the expected loss on regulatory and permitting issues that limited the full utilization of hazardous waste treatment cites in Califoirnia, continued startup delays for major remediation projects, the writeoff of an investment in a subsidiary and a settlem,ent with the California Attorney General's Office and Department of Health Services. The company said the settlement relates to regulatory violations alleged by the U.S. Environmental Protection Agengy and the California Health Services department at the company's Vine Hill and Panoche treatment facilities in Northern California. It said under the agreement, it will pay the state 2,100,000 dlrs in civil penalties over a two-year period and pay 500,000 dlrs over five years to local medical facilities as part of a community awareness and emergency response program developed by local communities.  The expenses will be charged against fourth quarter results, it said. The company said it has agreed as well to make compliance and public safety capital expenditures of about 600,000 dlrs. It said it has now received an operating permit for a new 250,000 cubic yard landfill cell at its Imperial County, Calif., from the Health Services department. The company said the Panoche facility remains closed but is expected to reopen for liquid and sludge receipts in the near future.  But it said receipts of solid material, which had accounted for the majority of the revenue at the site, could be restricted until 1988 pending resolution of capacity issues in the Panoche site permit.  
WESTLB LUXEMBOURG REPORTS LOWER 1986 NET PROFIT. Westdeutsche Landesbank Girozentrale <WELG.F> said its wholly-owned Luxembourg subsidiary WestLB International SA posted a decline in 1986 net profit to 12.6 mln marks from 48.5 mln a year earlier. WestLB International will pay a 12.5 mln mark dividend to WestLB, down from 47.7 mln a year earlier. The dividend was lower than in 1985 because the record profit of the previous year could not be repeated, due to changed market conditions, it said. Increased funds were also allocated for provisions. Business in the first three months of 1987 developed positively, it added. WestLB International set aside 115.3 mln marks for international credit risks in 1986, up from 97.4 mln marks in 1985, bringing the total amount of provisions shown in the balance sheet to 580.3 mln marks. Operating profit fell to 122 mln marks in 1986 from 150 mln in 1985. Balance sheet total fell to 9.7 billion marks from 10.8 billion, reflecting the lower dollar and the fact that credit business redemptions were not fully offset by new lending. The statement said WestLB International's business with private customers showed a pleasing expansion last year. This development was aided by cooperation between the bank and the savings banks in the West German state of North Rhine-Westphalia, where parent bank WestLB is based. Deposits by non-banks rose more than 40 pct to a total of 1.1 billion. WestLB International said it plans to expand its range of services for private clients.  
<GIANT YELLOWKNIFE MINES LTD> 4TH QTR NET. Shr 23 cts vs 46 cts Net 987,000 vs 1,990,000 Revs 14.6 mln vs 15.0 mln Year Shr 89 cts vs 1.32 dlrs Net 3,846,000 vs 5,690,000 Revs 58.1 mln vs 56.6 mln  
NORTH EAST INSURANCE CO <NEIC> 4TH QTR LOSS. Shr loss 85 cts vs loss 1.36 dlrs Net loss 1,653,386 vs loss 2,646,876 Year Shr loss 12 cts vs loss 1.30 dlrs Net loss 236,469 vs loss 2,522,293 NOTE: Year net includes realized investment gains of 734,609 dlrs vs 645,438 dlrs.  
MELLON BANK EXPECTS TO REPORT A FIRST QUARTER LOSS OF 55 MLN TO 65 MLN DLRS.  MELLON BANK EXPECTS TO REPORT A FIRST QUARTER LOSS OF 55 MLN TO 65 MLN DLRS  
MELLON BANK SAYS IT WILL CUT DIVIDEND TO 35 CTS A SHR FROM 69 CTS.  MELLON BANK SAYS IT WILL CUT DIVIDEND TO 35 CTS A SHR FROM 69 CTS  
NORTH EAST <NEIC> MAY VIOLATE CAPITAL RULES. North East Insurance Co said due to the magnitude of its losses in 1986 and 1985, it may be found in violation of minimum capital and surplus requirements by officials in Maine and New York and be subject to sanctions and administrative actions in those and other states. The company today reported a 1986 loss of 236,469 dlrs, after realized investment gains of 734,609 dlrs, compared with a 1985 loss of 2,522,293 dlrs, after investment gains of 645,438 dlrs.  Its fourth quarter net loss was 1,653,386 dlrs, compared with 2,646,876 dlrs. The company said its fourth quarter and year losses resulted from additions to loss reserves.  
ELECTROMEDICS INC <ELMD> YEAR NET. Shr profit nil vs loss three cts Net profit 140,022 vs loss 882,869 Revs 13.3 mln vs 8,870,035 Avg shrs 45.0 mln vs 35.0 mln Backlog 1,683,000 vs 978,000 NOTE: Current year net includes tax credit of 51,000 dlrs.  
ELECTROMEDICS <ELMD> TO TAKE 1ST QTR CHARGE. Electromedics Inc said it expects to take a 150,000 dlr charge against first quarter results due to the conversion of debentures. The company said, however, it expects "positive" operating comparisons for the period.  Electromedics lost 6,000 dlrs in last year's first quarter.  
SHELDAHL INC <SHEL> 2ND QTR FEB 28 NET. Shr 24 cts vs four cts Net 663,000 vs 109,000 Sales 20.5 mln vs 13.9 mln Six mths Shr 48 cts vs nine cts Net 1,311,000 vs 255,000 Sales 43.2 mln vs 30.0 mln Avg shrs 2,719,205 vs 2,804,048  
MELLON <MEL> SEES LARGE FIRST-QUARTER LOSS. Mellon Bank Corp said it expects to report a loss for the first quarter in the range of 55 mln to 65 mln dlrs or 2.13 to 2.15 dlrs a share. The company also said it intends to reduce its second quarter common stock dividend to 35 cts a share from 69 cts. Mellon said it will make a provision for loan losses in the first quarter of 175 mln dlrs, reflecting about 95 mln dlrs in charge-offs and 80 mln dlrs in additions to the loan-loss reserve. It will also put 310 mln dlrs in Brazilian loans on a cash basis, resulting in interest reversals of 10 mln dlrs. In the first quarter of 1986, Mellon earned 60.4 mln dlrs or 2.13 dlrs a share. Chairman David Barnes said the loan charge-offs and increased provisions address four areas of concern in the bank's wholesale lending portfolio - the energy sector, developing countries, some basic industrial companies and several commercial real estate businesses. Mellon said the loan loss reserve at the end of the first quarter is estimated to be 575 mln dlrs, or about 2.5 pct of the loan book, compared with 493.8 mln dlrs or 2.17 pct of total loans at the end of 1986. Mellon said its primary capital ratio at the end of the first quarter will be in line with the end-1986 figure of 7.23 pct, well in excess of regulatory guidelines. Non-performing loans at quarter-end are estimated at 1.45 billion dlrs, or 6.5 pct of the loan portfolio, compared with 928 mln dlrs or 3.94 pct at the end of 1986. Barnes noted that Mellon has a bigger involvement in energy-based lending than many other banks. Because of the lack of a substantial recovery in energy prices this year, especially in natural gas prices, it was felt prudent to increase reserves and take losses on loans in this sector. "This action relates both to loans to companies directly involved in energy, as well as loans to real estate developers, home builders and financial institutions in the Southwestern United States," Barnes said. As for LDC loans, he said Mellon had removed about 80 mln dlrs in fully current Argentine loans from cash basis but had charged off about 20 mln dlrs in private-sector Mexican debt. He said Mellon, which was ordered in December to quit Brazil because of its refusal to renew some short-term credit lines, expects to participate in efforts to helpt Brazil and other sovereign borrowers to reschedule their debts. Loans to basic industries were not major contributors to the increase in non-performing assets or to first-quarter charge offs, but Mellon said it remains concerned about the absence of a strong recovery in steel and related industries. The increase in reserves, the dividend cut and continued management cost-cutting are aimed at ensuring that Mellon has the financial strength to deal with current uncertainties, Barnes said. "We cannot predict when the uncertainties that presently trouble us will end, but we are confident we are managing them aggressively," he added.  
KLOECKNER SEES FURTHER GROWTH IN ENGINEERING. Kloeckner-Werke AG <KLKG.F> should have turnover this year around 1985/86's 2.4 billion marks though more growth is likely in engineering in coming years, management board chairman Herbert Gienow said. He told a news conference at the trade fair here that by the mid-1990s turnover should reach between six and seven billion marks, mainly through acquisitions totalling "several hundred million marks." Kloeckner reported in March higher profits in its engineering sector which enabled it to raise profits by nearly a third in the 1985/86 year to 45.2 mln marks from 33.8 mln.  
SAN DIEGO GAS <SDO> SEES DECISION HURTING NET. San Diego Gas and Electric Co said a California Public Utilities Commission decision to reconsider allowing only 20 mln dlrs of the 69 mln dlrs in San Onofre nuclear station costs it disallowed makes it likely that earnings in 1987 will be reduced at least 36 cts per share. The company said if the decision to disallow the other 20 mln dlrs is not changed, earnings would be penalized by another 19 cts.  
GENERAL PUBLIC UTILITIES RESUMES DIVIDENDS ON COMMON STOCK, PAYS 15 CTS.  GENERAL PUBLIC UTILITIES RESUMES DIVIDENDS ON COMMON STOCK, PAYS 15 CTS  
UTILICORP RECOMMENDS THREE-FOR-TWO SPLIT, DIVIDEND INCREASE AND ADDITIONAL CLASS OF STOCK.  UTILICORP RECOMMENDS THREE-FOR-TWO SPLIT, DIVIDEND INCREASE AND ADDITIONAL CLASS OF STOCK  
GPU <GPU> DECLARES FIRST DIVIDEND SINCE 1979. General Public Utilities Corp said its board declared a dividend of 15 cts per share on common stock, its first dividend since it omitted payment in February 1980 as a result of the Three Mile Island nuclear accident in 1979. The company said it was able to declare the dividend due to progress in the cleanup of Three Mile Island Unit Two. A company spokesman said GPU expects to continue declaring dividends on a quarterly basis, with the rate depending on the progress of the cleanup and on other company operations. GPU said the dividend is of "modest size," representing less than a third of the amount paid as a dividend by the average electric utility. "As the operating companies need to return to the capital markets for debt and preferred stock, this should tend to produce lower cost and better terms," the company said. The dividend is payable May 29 to holders of record April 24.  
BRITTON LEE <BLII> SEES FIRST QUARTER LOSS. Britton Lee Inc said it expects to report a loss on lower sales than it had anticipated for the first quarter. The company earned 119,000 dlrs before a 70,000 dlr tax credit on sales of 7,227,000 dlrs in the year-ago period.  
HOLIDAY <HIA> RECAPITALIZATION APPROVED. Holiday Corp said the New Jersey Casino Control Commission has approved its recapitalization plan, providing the final regulatory approval needed. The company said it expects to announce next week the record date for the special 65 dlr per share dividend shareholders will receive under the plan and to pay the dividend during the month of April, with the exact timing depending on the closing of financing arrangements. Holiday operates Harrah's Marina Hotel and Casino in Atlantic City, N.J.  
COMP-U-CARD INTERNATIONAL INC <CUCD> 4TH QTR NET. January 31 end Oper shr profit 16 cts vs loss six cts Oper net profit 2,879,000 vs loss 958,000 Revs 41.9 mln vs 24.1 mln Avg shrs 18.2 mln vs 15.8 mln Year Oper shr profit 49 cts vs profit 18 cts Oper net profit 8,660,000 vs profit 2,832,000 Revs 141.8 mln vs 87.5 mln Avg shrs 17.8 mln vs 15.8 mln NOTE: Net excludes extraordinary tax charge 156,000 dlrs vs credit 2,257,000 dlrs in quarter and credits 1,041,000 dlrs vs 3,589,000 dlrs in year.  
CENTRONICS CORP <CEN> YEAR LOSS. Oper shr loss 11 cts vs loss 36 cts Oper net loss 2,383,000 vs loss 4,285,000 Total income 2,194,000 vs nil NOTE: Resultes restated for discontinued operations and exclude discontinued operations loss 5,755,000 dlrs vs gain 4,933,000 dlrs.  
SANDSPORT DATA SERVICES INC <SAND> 3RD QTR NET. Feb 28 end Shr nil vs nil Net 132,804 vs 53,510 Revs 2,001,107 vs 1,467,742 Avg shrs 73.9 mln vs 56.7 mln Nine mths Shr nil vs nil Net 302,316 vs 171,034 Revs 5,230,014 vs 4,112,562 Avg shrs 74.4 mln vs 56.7 mln  
HEALTH IMAGES INC <HIMG> 4TH QTR LOSS. Shr loss one ct vs loss seven cts Net profit 108,419 vs loss 241,192 Revs 2,044,882 vs 317,266 Year Shr loss 18 cts vs loss 23 cts Net loss 430,027 vs loss 432,982 Revs 5,088,065 vs 416,777 NOTE: Share after preferred dividends.  
SHELL CANADA SEES BETTER PROFIT, LOWER SPENDING. <Shell Canada Ltd>, 72 pct owned by Royal Dutch/Shell Group, anticipates an improved level of earnings in 1987, assuming a continuation of prices and margins that existed at the end of 1986 and early 1987, the company said in the annual report. Shell previously reported 1986 operating profit fell to 130 mln dlrs, excluding a 24 mln dlr unusual gain, from 146 mln dlrs in the prior year. The company also said 1987 capital and exploration spending of 420 mln dlrs will be 160 mln dlrs lower than last year, due to the uncertain short-term outlook.  
UTILICORP <UCU> SEEKS TO SPLIT STOCK. Utilicorp United Inc said its management is recommending to the board of directors a three-for-two stock split and an increase in the quarterly cash dividend rate, currently at 37 cts per common share. The company said it is also submitting to shareholders at its May 21 annual meeting a proposal authorizing an additional class of common stock. Utilicorp said the board of directors will vote on the split at its next regularly scheduled board meeting on May 6. It added that its semi-annual four pct stock dividend will not change. Utilicorp said the proposal to create a new class of stock, if approved, will authorize 20 mln shares of Class A common stock with a par value of one dlr. The stock could be issued in various series with terms, rights and preferences designated by the board in each instance, Utilicorp said. The company said the new stock is intended to enhance Utilicorp's ability to carry out future financings, investments, acquisitions or for other corporate purposes.  
AMERICAN REALTY <ARB> SETS RECORD DATE FOR OFFER. American Realty Trust said its board has set April 3 as the record date for its previously announced rights offering, and the rights will be issued on April 6 and expire May 22. Shareholders will be able to subscribe for 1.25 shares for each share held, at a price of 3.75 dlrs per share.  
CARTER-WALLACE INC <CAR> SETS REGULAR PAYOUT. Qtly div 20 cts vs 20 cts prior Pay June 1 Record April 16  
HINDUSTAN LEVER PROFITS RISE FOR 1986. Shr 8.4 rupees vs seven Pretax profit 650.7 mln vs 555.6 mln Net profit 390.7 mln vs 325.6 mln Sales 8.24 billion vs 7.07 billion Div 34 pct vs 30 pct Tax 260 mln vs 230 mln Dividend payable on June 3 The company is 51 pct subsidiary of Unilever Plc.The full name of the company is HINDUSTAN LEVER LTD <HINU.BO>.  
GERMAN CHEMICAL INDUSTRY SEES LOWER PROFITS. West Germany's chemical industry fears mounting risks will hurt earnings but hopes 1987 turnover will stabilize around 1986's 140 billion marks, Josef Strenger, a board member of the industry association VCI, said. Strenger, management board chairman of Bayer AG <BAYG.F>, told a news conference at the Hanover trade fair the main dangers were stagnation in world trade, the lower dollar as well as crude oil and commodity prices. Prospects of higher operating costs were also seen harming earnings, he said. Turnover took a considerable downturn at the start of 1987 after falling 5.9 pct in 1986. The chemical industry, which relies heavily on exports, was badly hit by mark appreciation in 1986 and lower turnover was mainly due to foreign exchange losses, Strenger said. Exports fell 6.4 pct to 72 billion marks in 1986 and competition from U.S. And British firms increased. Savings from lower oil and commodity prices were eaten up by price competition and increased costs. Strenger said 1986 operating profits of German chemical firms were slightly worse than the year before but the improved financial and balance sheet structure, after three good years, neutralized the negative impact. Strenger said the industry would try to increase production in the U.S. To make up for lost export possibilities out of West Germany. The lower dollar was the main reason for an 8.3 pct fall in exports to North America, an 11.4 pct drop to Latin America and 22.6 pct plunge to the Middle East. Exports to Western Europe eased 3.5 pct and Far East exports, due to an economic revival in Japan, dropped 5.2 pct. Strenger noted that the industry had lost public confidence following several cases of chemical pollution of the Rhine late last year.  
STANLINE INC <STAN> REGULAR DIVIDEND. Qtly div eight cts vs eight cts in prior qtr Payable April 30 Record April 15 Company said its board intends to declare cash dividends quarterly and plans to pay a five pct stock dividend annually following the close of each fiscal year. The initial five pct stock dividend was paid December 22 to holders of record November 30.  
HILTON <HLT> 1ST QTR EARNINGS UP ABOUT 37 PCT. Hilton Hotels Corp said its first quarter net income rose 37 pct, paced by strength in both hotels and gaming. Based on preliminary results, the company said, net income rose to about 24 mln dlrs, or 96 cts a share, from 17.4 mln dlrs, or 70 cts a share, in 1986's initial three months.  
MANGOOD CORP <MAB> YEAR OPER LOSS. Oper shr loss 6.07 vs loss 7.64 dlrs Oper net loss 6,235,000 vs loss 4,801,000 Sales 70.1 mln vs 60.6 mln Avg shrs 1,028,000 vs 629,000 NOTE: 1986 earnings exclude a gain on restructuring of 3,143,000 dlrs, or 3.01 dlrs a share  
<AMERICAN WEST BANK> FIRST QTR NET. Net 90,501 vs 56,960 Assets 42.0 mln vs 34.9 mln Deposits 35.9 mln Loans 27.6 mln vs 23.9 mln NOTE: earnings per share and 1985 deposits figure  not supplied by company.  
BIOMET INC <BMET> 3RD QTR FEB 28 NET. Shr 18 cts vs 13 cts Net 2,133,000 vs 1,384,000 Revs 14.1 mln vs 11.7 mln Nine mths Shr 49 cts vs 36 cts Net 5,657,000 vs 3,728,000 Revs 39.7 mln vs 31.8 mln  
EAC INDUSTRIES INC <EAC> 4TH QTR OPER LOSS. Period ended Jan 31 Oper shr loss 66 cts vs loss 1.29 dlrs Oper net loss 1,309,000 vs loss 2,522,000 Sales 25.1 mln vs 19.9 mln Year Oper shr loss 65 cts vs loss 97 cts Oper net loss 1,287,000 vs loss 1,882,000 Sales 113.4 mln vs 76.6 mln NOTE: Earnings exclude a loss on sale of discontinued operations of 17,000 dlrs, or one ct a share vs a gain of 1,383,000 dlrs, or 70 cts a share in the quarter and gains of 300,000 dlrs, or 15 cts a share vs 1,941,000 dlrs, or 1.00 dlr a share for the year  
WESSANEN FORESEES STRONG PROFIT GROWTH. Dutch dairy and general foods manufacturer Koninklijke Wessanen NV <WESS.AS>, said it is planning further world-wide acquisitions and forsees strong profit growth over the next 10 years. Company chairman Gerrit van Driel told journalists at the presentation of Wessanen's 1986 report he already expected 1987 first quarter profits to show an increase. The company last month reported a 16 pct increase in 1986 net profits to 72.7 mln guilders, after 62.3 mln in 1985. This was achieved despite a 25 pct drop in the dollar's guilder value, van Driel said. Van Driel said profits would have been nine mln guilders higher if the US currency had remained at its average 1985 level of 3.20 guilders. Turnover, at 3.7 billion guilders in 1986, was 450 mln guilders down because of the lower dollar and lower raw material prices. Total 1985 turnover was 4.2 billion guilders. US activities accounted for 34 pct of 1986 turnover, compared with 22 pct in 1982. Wessanen now has 15 separate businesses in the US out of a total of 62 world-wide. Van Driel said the company would continue an active takeover policy in the US, but would be wary about paying more than its current price/earnings ratio of 17 times net profit. He added that Wessanen teams were seeking acquisition possibilities in Brazil, Taiwan, Thailand and China. He said the company had an ample cashflow of 100 mln guilders and would if necessary make new share issues. Van Driel said he expected a 1987 US turnover of 700 mln dlrs. He said <Balanced Foods> and <Green's Dairy>, taken over late last year, have a combined annual turnover of 126 mln dlrs which was not included in the 1986 account. All sectors saw strong growth in 1986, resulting in a 13 pct increase in operating income to 120 mln guilders. Key to this growth was the successful introduction of new products, which were greatly enhanced by a number of consumer-oriented US acquisitions, van Driel said. Consumer products represented 50 pct of total 1986 turnover, compared with 35 pct in 1982, van Driel said. The company, which is already listed on the London, Zurich, Basle and Geneva stock exchanges as well as Amsterdam, aims to be quoted in Frankfurt and Dusseldorf in May, van Driel said. Van Driel stressed that while these listings would not be accompanied by new share issues, they provided easy vehicles for the company to raise capital for future expansion. He estimated that 33 pct of the company's shares were in foreign hands. The company's 1986 US turnover of about 750 mln dlrs made a listing on one of the New York exchanges a logical next step, van Driel said without elaborating. Despite EC dairy restrictions Wessanen, which produces around 10 pct of all Dutch cheese, saw good growth prospects for its dairy sector within Europe, van Driel said.  
TANDY <TAN> 3RD QUARTER REVENUES UP 12 PCT. Tandy Corp said consolidated sales and operating revenues for the third quarter, ended March 31, totaled nearly 776.0 mln dlrs, up 12 pct from 693.4 mln dlrs last year. The company said third quarter earnings will be released in the latter part of April. Tandy said March sales and oprating revenues totaled 164.4 mln dlrs, up 11 pct from March 1986's 238.8 mln dlrs. It said U.S. retail operations revenues rose to 225.8 mln dlrs last month from 202.7 mln dlrs a year earlier. Sales of U.S. stores in existence more than one year increased 10 pct.  
PHILIP MORRIS <MO> UP ON RECOMMENDATIONS. The stock of Philip Morris Cos rose today following recommendations by First Boston Corp and Morgan Stanley and Co, traders said. Philip Morris gained 1-3/4 to 88-1/4. First Boston's analyst was unavailable for comment. Morgan Stanley's David Hill said he just assumed coverage of Philip Morris and placed it on his recommended list becasue of its attractive earnings growth and because the stock is selling at a discount to the market based on Morgan's figures. Hill expects Morris to earn 7.75 dlrs a share this year and 9.50 dlrs in 1988. In 1986, Morris earned 6.20 dlrs a share.  
FEDERAL CO <FFF> 3RD QTR FEB 28 NET. Shr 1.00 dlr vs 34 cts Net 16.9 mln vs 5,696,000 Revs 371.3 mln vs 303.2 mln Avg shrs 16.9 mln vs 16.3 mln Nine mths Shr 3.55 dlrs vs 1.66 dlrs Net 59.3 mln vs 27.1 mln Revs 1.02 billion vs 912.8 mln Avg shrs 16.7 mln vs 16.3 mln  
FLOWERS INDUSTRIES INC <FLO> HIKES PAYOUT. Qtly div 14-1/2 cts vs 14 cts prior Pay May 4 Record April 17  
FINE ART ACQUISITIONS LTD <FAAA> 4TH QTR NET. Shr three cts vs three cts Net 141,224 vs 118,192 Sales 5,849,695 vs 3,717,794 Avg shrs 4,975,000 vs 4,925,000 Year Shr 15 cts vs 10 cts Net 720,126 vs 474,879 Sales 18.2 mln vs 11.5 mln Avg shrs 4,959,932 vs 4,902,778 NOTE: 1985 year net includes gain of 58,000 dlrs, or one cent a share, from tax loss carryforward  
<ANCHOR FINANCIAL CORP> 1ST QTR NET. Shr 31 cts vs 31 cts Net 226,000 vs 173,000 Assets 73.1 mln vs 62.5 mln Deposits 54.6 mln vs 51.5 mln NOTE: earnings per share for 1987 affected by issuance of 166,750 shares of common stock in December 1986.  
TSR INC <TSRI> 3RD QTR FEB 28 NET. Shr seven cts vs four cts Net 161,000 vs 107,000 Revs 5,852,000 vs 4,794,000 Nine mths Shr 23 cts vs 24 cts Net 553,000 vs 610,000 Revs 18.2 mln vs 14.2 mln  
MAVERICK RESTAURANT CORP <MAVR> 4TH QTR LOSS. Ended Jan 31 Shr loss 50 cts vs loss one ct Net loss 2,475,739 vs loss 68,691 Revs 3,689,770 vs 3,292,733 Year Shr loss 50 cts vs loss two cts net loss 2,472,582 vs loss 112,936 Revs 14.8 mln vs 13.2 mln NOTE: Current periods include charge of 2.25 mln dlrs or 45 cts for restaurant closings.  
GRAPHIC MEDIA INC <GMED> YEAR NET. Ended Jan 31 Shr nine cts vs eight cts Net 246,000 vs 369,000 Revs 20.4 mln vs 11.2 mln Avg shrs 2,123,000 vs 1,882,000 NOTE: 1985 restated.  
TIME <TL> 1987 EARNINGS MAY BE 4.25 DLRS SHARE. Time Inc's chief financial officer, Thayer Bigelow, told security analysts the company is "comfortable" with Wall Street estimates that 1987 earnings will be in a range of 3.75 dlrs to 4.25 dlrs per share. In 1986, Time reported earnings of 5.95 dlrs per share, including a number of special items. Bigelow said in adjusting the 1986 results for the special items and also removing the earnings of American Television and Communications Corp <ATCMA>, Time earned 2.35 dlrs per share in 1986. Turner Broadcasting System Inc said the investment by the cable consortium would be in Turner Broadcasting, not directly in CNN. The consortium would infuse up to 550 mln dlrs in Turner Broadcasting in return for a 35 pct equity interest. Ted Turner, Chairman, would retain a 51 pct interest, a Turner Broadcasting spokesman said. Bigelow said the company is continuing its previously announced 10 mln share repurchase program and has bought back 4.1 mln of its own shares. He said 700,000 shares were purchased in the first quarter of 1987 at an average price of 81 dlrs per share. Bigelow said the company will always have a share buyback program in place whenever it believes it is a better long-term investment than starting or acquring a business. But he did not give any specifics on further repurchases beyond the 10 mln shares already announced.  On the subject of acquisitions, Richard Munro, chairman and chief executive said the company is not interested in investing in over-the-air broadcasting, but continues to look at all areas in which it is currently engaged. Munro said book publishing is an area that interested Time. In 1986 the company purchased Scott and Foresman, its biggest acquisition ever. N.J. Nicholas, president and chief operating officer, said the company might be interested in a relatively small book business. He said following the recent agreement for the sale of Harper and Row to the News Corp Ltd <NWS>, "there may be pieces that Murdoch doesn't want," referring to News Corp chairman Rupert Murdoch. Asked if the company's SAMI business is for sale, Munro said it is a "delicate subject", and "we're looking at all the options." SAMI is a marketing information service for the food industry. Published reports have stated it could be worth as much as 500 mln dlrs.  Bigelow said that Time's Home Box Office added  subscribers last year and the trend is continuing in the first quarter of 1987. However, he said, HBO's results in the quarter will be down slightly, but in the first quarter of 1986 there was a special gain in the HBO unit. Nicholas said that HBO and Cinemax had combined subscriber growth of 800,000 for last year. He also said the tax rate in 1987 will remain at just under 50 pct because of the repeal of investment tax credits and higher state and local taxes. He said he sees a decrease in the tax rate in 1988 of five or six percentage points. Munro said the company does not plan to increase its dividend. Trygve Myhren, chairman and chief executive of American Television and Communications, said the unit is looking at getting involved in the home shopping video area. "It would be foolish not to be a player there," he said. He said the company had talks with Home Shopping Network Inc <HSN> prior to that company's public offering last year, but nothing came of the talks.  
LAND'S END INC <LEYS> VOTES INITIAL PAYOUT. Land's End Inc said its board declared a dividend of 10 cts a share payable April 30, record April 13. It is the company's first dividend since it became a public entity last October.  
POPE AND TALBOT <POP> SEES HIGHER 1ST QTR NET. Pope and Talbot Inc said it expects first quarter earnings to total about one dlr per share, compared with a year-earlier loss of nine cts per share. Each of the company's business segments contributed to the sharp improvement, Pope and Talbot said. The wood products company also said it expects to release first quarter results later this month.  
STERLING DRUG INC <STY> INCREASES PAYOUT. Qtrly div 38 cts vs 33 cts Pay June 1 Record May 7 NOTE: company said this is the largest dividend increase in 15 years.  
KENTUCKY CENTRAL TO DECLARE STOCK DIVIDEND. Kentucky Central Life INsurance Co said the company said it will declare a 200 pct stock dividend on Monday. Accordingly, it said it filed a registration statement with the Securities and Exchange COmmission for a proposed offering of three mln shares of its class a non-voting common stock, which reflects the anticipated dividend. Proceeds will be used for general purposes.  
COPLEY PROPERTIES INC <COP> INCREASES DIVIDEND. Qtly div 42 cts vs 41.5 cts prior Payable APril 28 Record April 14  
<ITT CANADA LTD> YEAR NET. Shr 5.56 dlrs vs 3.88 dlrs Net 47.5 mln vs 33.2 mln Revs 254.5 mln vs 243.5 mln Note: shr after preferred dividends ITT Corp <ITT> owns 100 pct of ITT Canada common shares  
REGAL PETROLEUM LTD <RPLO> YEAR. Shr loss nine cts Net loss 1.4 mln Revs 630,118 dlrs NOTE:Due to change in fiscal year, prior 4th qth and year cannot be presented on comparable basis. 1986 loss includes writedowns approximating 1.4 mln dlrs.  
CANTERBURY PRESS INC YEAR NOV 30. Shr 1.1 cts vs 1.7 cts Net 26,708 vs 35,084 Revs 447,548 vs 243,161 NOTE:1986 net includes 4,300 dlrs gain from tax credit and 1985 includes gain of 8,300 dlrs gain from credit.  
GRAPHIC MEDIA INC <GMED> YEAR. Shr nine cts vs 19 cts Net 188,000 vs 362,000 Revs 20.4 mln vs 11.3 mln NOTE:1985 restated for reversal of certain tax benefits. 1986 and 1985 reflects preferred stock dividend requirements.  
RICHARDSON ELECTRONICS <RELL> 3RD QTR FEB 28 NET. Shr 20 cts vs 20 cts Net 1,981,000 vs 1,689,000 Rev 24.7 mln vs 19.6 mln Nine months Shr 59 cts vs 53 cts Net 5,855,000 vs 4,360,000 Rev 70.9 mln vs 51.9 mln NOTE: Fiscal 1986 per share data reflects dilutive effect of shares issued for April 1986 convertible debenture conversion. Company's full name is Richarson Electronics Ltd.  
DIVERSIFIED HUMAN RESROUCES GROUP <HIRE> YEAR. Shr loss five cts vs profit 72 cts Net loss 79,069 vs profit 829,737 Revs 14.4 mln vs 14.1 mln NOTE:1985 includes extraordainy credit of 11 cts.  
US WEST <USW> HIKES DIVIDEND. Qtly div 82 cts vs 76 cts prior Pay May 1 Record April 16  
HEALTHVEST <HVT> DECLARES THREE-WEEK DIVIDEND. Healthvest said its board declared a dividend for the final three weeks of the March quarter of 14 cts, payable April 28 to holders of recrod April 15. Previously, it dclared a special interim dividend of 42 cts for January 1 to March 9 in connection with its recently completed offering. The combined dividend totals 56 cts for the March quarter, an increase from the prior quarter's dividend of 55 cts  
CPI CORP <CPIC> 4TH QTR FEB 7 NET. Shr 43 cts vs 36 cts Net 7,209,000 vs 5,574,000 Sales 77.7 mln vs 58.7 mln Avg shrs 16,676,000 vs 15,478,000 Year Shr 1.12 dlrs vs 1.10 dlrs Net 18,371,000 vs 17,032,000 Sales 257.5 mln vs 198.3 mln Avg shrs 16,411,000 vs 15,433,000 NOTE: Year-ago period ended Feb 1, 1986 Full-year earnings include gains from discontinued operations of 184,000 dlrs, or one ct a share vs 3,143,000 dlrs, or 20 cts a share  
GALILEO ELECTRO-OPTICS CORP <GAEO> 2ND QTR. Galileo Electro-Optics Corp said estimated earnings for the second quarter ended March 31, 1987, will be over current analysts estimates of 40 cts to 45 cts per share. However, the company said it has not closed its books for the quarter and release earnings April 20.  
<DOUGLAS COMPUTER INTERNATIONAL> YEAR NET. Shr seven cts vs one ct Net 178,919 vs 34,429 Sales 3,148,420 vs 1,912,438  
MEDICAL STERILIZATION INC <MSTI> YEAR LOSS. Shr loss 65 cts vs loss 1.31 dlrs Net loss 1,366,340 vs loss 2,148,656 Revs 2,664,852 vs 799,864  
ENEX RESOURCES CORP <ENEX> 4TH QTR LOSS. Shr not given Net loss 330,613 vs profit Revs 2,170,628 vs 614,511 Year Shr loss one ct vs profit nine cts Net loss 212,289 vs profit 829,747 Revs 5,397,167 vs 3,785,688  
OSHAP TECHNOLOGIES LTD <OSHUF> YEAR LOSS. Shr loss 12 cts vs loss three cts Net loss 646,000 vs loss 96,000 Revs 9,414,000 vs 9,899,000 Avg shrs 5,382,833 vs 3,722,833 NOTE: Converted using Dec 31 exchange rate of 40.05 Belgian francs to the U.S. dlr.  
<DOUGLAS COMPUTER INTERNATIONAL> YEAR END 1986. Shr seven cts vs one ct Net 178,919 vs 34,429 Revs 3,148,420 vs 1,912,438  
JACK WINTER INC <JWI> 4TH QTR JAN 3 LOSS. Shr loss 67 cts vs loss seven cts Net loss 2,410,000 vs loss 245,000 Revs 11.0 mln vs 10.9 mln 12 mths Shr loss 21 cts vs profit 43 cts Net loss 748,000 vs profit 1,571,000 Revs 46.9 mln vs 40.5 mln  
PLANTERS CORP <PNBT> 1ST QTR NET. Shr 32 cts vs 28 cts Net 2,194,000 vs 1,929,000  
<DREYFUS A BONDS PLUS INC> MONTHLY PAYOUT. Mtly div 10.4 cts vs 10.8 cts prior Paid April 1 Record March 31  
SCOTT INSTRUMENTS CORP <SCTI> YEAR LOSS. Shr loss 15 cts vs loss 27 cts Net loss 1,905,774 vs loss 2,160,717 Revs 868,117 vs 307,135  
SCOTT INSTRUMENTS <SCTI> GETS QUALIFIED AUDIT. Scott Instruments Corp said its independent public accountants qualified the report on Scott's 1986 financial statements because of its weak financial condition. The report indicates the realization of the company's assets is dependent on it obtaining enough working capital to finance operations and additional funds to meet other liabilities, among other things. These factors indicate the company may be unable to continue its existence. Earlier, Scott reported a 1986 loss of 1.9 mln dlrs compared to a loss of almost 2.2 mln dlrs in 1985. Total assets were nearly 1.1 mln dlrs at year end, down from 1.2 mln dlrs the prior year.  
<THORATEC LABORATORIES CORP> YEAR LOSS. Shr loss 1.64 dlrs vs loss 2.08 dlrs Net loss 9,761,000 vs loss 10,977,000 Revs 4,409,000 vs 2,697,000  
NETWORK <NETW> TO TAKE 3RD QTR CHARGE. Network Control Corp said it intends to take a 250,000 dlr charge against earnings for the third quarter ended March 31 and said sales for the quarter would be about 400,000 dlrs, about 50 pct below sales in the same year-ago quarter. Network said it is taking the charge due to the significant increase in accounts receivable which remain uncollected for more than 90 days after billing. It said it ultimately will collect most of those accounts. It attributed the sales decline to a transition period for its new products and a delay in a major order.  
3-APR-1987 16:24:53.34. 3-APR-1987 16:24:53.34 
BIW CABLE SYSTEMS INC <BIWC> 4TH QTR LOSS. Shr loss 1.50 dlrs vs loss 14 cts Net loss 3,395,933 vs loss 318,225 Revs 8,963,097 vs 12.6 mln Year Shr loss 2.93 dlrs vs profit two cts Net loss 6,613,327 vs profit 49,421 Revs 44.4 mln vs 48.7 mln NOTE: Current periods include 2.2 mln dlr charge for possible obsolete inventory and provision of 356,000 dlrs for consolidation of cable manufacturing plant.  
WAREHOUSE CLUB <WCLB> TO TAKE CHARGE. Warehouse Club Inc said it expects to take a one-time charge of about five mln dlrs on its June 30 third quarter results from closing of two unprofitable Chicago area units. The company said it will continue to operate 12 warehouses in Illinois, Indiana, Michigan, Ohio and Pennsylvania. It added that it expects future operating results to be improved because of the closing of the two warehouses.  
CULLEN/FROST <CFBI> TO OMIT DIVIDEND. Cullen/Frost Bankers Inc said it will defer paying a cash dividend for the next 12 months, due to the economic slump in the Texas economy. It previously paid a five cents a share dividend in recent quarters. It also said its first quarter earnings ended March 31, which it said it will release later this month, will be similar to its fourth quarter earnings last year. In 1986 the company reported a loss of 6,565,000 dlrs or 91 cts a share.  
LOCTITE <LOC> SEES BETTER THAN EXPECTED NET. Loctite Corp said it expects third quarter earnings to be higher than security analysts' forecasts of 75 to 80 cts a share. Last year the company earned 53 cts per share in the third quarter. It attributed its better than expected forecast to sales growth, which it said were particularly strong overseas. It also said it will have a lower effective tax rate.  
TIME <TL> SEES DILUTION FROM SCOTT, FORESMAN. Time Inc said the acquisition of Scott, Foresman and Co last year will dilute earnings per share by about 17 cts a share for the full year in 1987. For the first quarter the acquisition will have a negative impact of about 20 cts per share, chief financial officer Thayer Bigelow told security analysts. He said Scott, Foresman, a textbook publisher, will contribute more than 50 mln dlrs in operating income before depreciation and amortization for the full year. N.J. Nicholas, president and chief operating officer, said Soctt Foresman will have over 200 mln dlrs in revenue in 1987. Bigelow said the textbook business, which normally has its highest profit in the third quarter and incurs a loss in the first quarter, will have an "adverse impact of 15 mln dlrs' on book publishing income for the first quarter. "First quarter performance for the rest of Time Inc will be better than last year," Bigelow said. The dilution of 17 cts per share for 1987 includes the effects of financing the acquisition. Bigelow also said the company is "comfortable" with estimates that earnings will be between 3.75 dlrs and 4.25 dlrs per share for the year.  
U.S. COMPANY EARNINGS HIGHLIGHTS. First Quarter Anchor Financial Corp shr 31 cts vs 31 Nine Months Biomet Inc shr 49 cts vs 36 Federal Co shr 3.55 dlrs vs 1.66 Richardson Electronics shr 59 cts vs 53 Year Eac Industries Inc oper shr loss 65 cts vs loss 97 cts Fine Art Acquisitions shr 15 cts vs 10 Mangood Corp oper shr loss 6.07 dlrs vs  loss  7.64  
FREEDOM SAVINGS AND LOAN ASS'N <FRDM> YEAR END. Shr loss 31.09 dlrs vs loss 1.86 dlrs Net loss 112.7 mln vs loss 5.5 mln NOTE: 1986 loss includes operating loss of 109.4 mln dlrs or 30.21 dlrs a share, including an additional loan loss provision of 68 mln dlrs, write downs in the value of real estate of 13 mln dlrs and an extraordinary loss of 3.3 mln dlrs for early retirement of long-term debt.  
TELEBYTE TECHNOLOGY INC <TBTI> YEAR. Shr loss 10 cts vs loss 13 cts Net loss 197,779 vs loss 245,190 Revs 4.0 mln vs 3.1 mln  
HOUSTON OIL ROYALTY TRUST <RTH> DISTRIBUTION. MONTHLY dist 2.1 cts vs 2.1 cts prior Payable April 25 Record April 15  
<COMTERM INC> YEAR JAN 31 LOSS. Oper shr loss 30 cts vs profit eight cts Oper net loss 5,887,996 vs profit 1,620,312 Revs 32.4 mln vs 48.5 mln Note: 1987 net excludes extraordinary gain of 2.7 mln dlrs or 14 cts shr from settlement of provision for discontinued operations vs yr-ago tax gain of 562,248 dlrs or three cts shr.  
SABINE ROYALTY TRUST <SBR> SETS MONTHLY PAYOUT. Cash distribution 13.3 cts vs 8.4 cts prior Pay April 29 Record April 15  
PROVIDENCE ENERGY CORP <PVY> REGULAR DIVIDEND. Qtly div 45 cts vs 45 cts prior Pay May 15 Record April 24  
GULF STATES (GSU) SEES END TO CASH BY MAY. Gulf States Utilities Co said its condition has "significantly deteriorated" and that its operating cash reserves will be inadequate by May 1987 unless it receives additional financing or rate relief from state public utilities commissions in Texas and Louisiana. In the company's newly-released annual report and 10-K filing, Gulf States said its bank lenders had notified the utility last month that no additional credit would be granted. Gulf States said the banks had requested the utility to begin making prepayments by the end of April of 45 mln dlrs more than the estimated 1987 lease payments of 40 mln dlrs. "The circumstances increase the likelihood that the company may have to seek protection from its creditors under the bankruptcy code," Gulf States said. The utility had previously said it might be forced to consider filing for bankruptcy because of limited rate increases granted by state regulators in connection with Gulf States' 4.3 billion dlr River Bend nuclear plant in Louisiana. "If the regulatory commissions approve the company's proposed rate moderation plan and grant the increases provided for in such plan during the initial three-year phase-in period, the company believes it could achieve financial stability," Gulf States said. In February, the Texas Public Utilities Commission granted Gulf States an interim rate increase of 39.9 mln dlrs contingent upon the utility obtaining a new 250 mln dlr line of credit to pay operating expenses. The utility had sought 144.1 mln dlrs in rate hikes in Texas. Gulf States has appealed a decision by Louisiana state regulators rejecting its application for 100 mln dlrs in emergency rate relief. In 1986, Gulf States earned 244.9 mln dlrs on revenues of 1.47 billion dlrs, compared to profits of 265.4 mln dlrs on sales of 1.85 billion in the previous year.  
CAESARS WORLD BOARD APPROVES RECAPITALIZATION. Caesars World Inc <CAW> said its directors unanimously approved a recapitalization plan under which stockholders will get a cash distribution of 25 dlrs per share via a one-time special cash dividend and will retain their common stock ownership in Caesars World. Caesars World said it expects to raise the approximately one billion dlrs needed to pay the 25 dlr per share dividend and the expenses of recapitalization through around 200 mln dlrs in bank borrowings and a public sale of approximately 800 mln dlrs of debt. Some outstanding debt will be retired. Drexel Burnham Lambert Inc, Caesars' financial advisor, has told the company it is confident it can arrange the entire financing needed for the recapitalization. Henry Gluck, chairman and chief executive officer of the hotel, casino and resorts company, said in a statement the board believes the recapitalization plan is financially superior to a 28 dlr a share tender offer by Martin Sosnoff. Gluck said the Caesars World board once again recommends that shareholders reject the Sosnoff offer. The stock closed at 29.25 dlrs a share on Friday. "Our ability to restructure along these lines is possible primarily because of the financial stability and the strong operating results achieved by management in recent years," Gluck said. He said that after the recapitalization takes effect, proforma net income for the fiscal year ended July 31, 1988 is expected to be about 28.7 mln dlrs. Fiscal 1988 primary earnings per share are projected to be 76 cents, based on about 37.8 mln in post-recapitalization common and common-equivalent shares outstanding. Commenting on the company's longer term earnings outlook, Gluck said "we project net income to increase to 86.2 mln dlrs in 1992, reflecting increased operating income and lower interest expense due to the retirement of 267 mln dlrs of debt incurred in connection with the recapitalization." He said the company does not usually release projections, but has done so now beause of the significance of the recapitalization. Gluck said the recapitalization plan will be submitted for stockholder approval at a special meeting expected in June. The plan will require the approval of stockholders and that of the Nevada and New Jersey gaming regulatory authorities. As part of the plan, the company will change its state of incorporation from Florida to Delaware by means of a merger of Caesars World into a wholly owned subsidiary of the company. The new incorporation certificate and bylaws will provide for, among other things, a "fair price" provision requiring that certain transactions with interested 15 pct stockholders be approved by an 80 pct vote of stockholders, excluding shares held by such interested stockholders. Caesars World said in a statement that "the cash distribution will result in a substantial deficit in stockholders' equity." It did not give an estimate of the size of this deficit. But the company said its financial advisors have said they believe that after the recapitalization, Caesars World should have the financial flexibility and resources necessary to finance its current and projected operating and capital requirements.  
Nixdorf world group 1986 net profit 222.42 mln marks vs 172.29 mln, div 10 marks.  Nixdorf world group 1986 net profit 222.42 mln marks vs 172.29 mln, div 10 marks  
MOET-HENNESSY PROPOSES HIGHER DIVIDEND. YEAR TO END-DEC 1986 Proposed dividend 45 francs vs 34.50 francs Note - Full name of company is Moet-Hennessy SA <MHSP.PA>  
LIEBERMAN ENTERPRISES INC 3RD QTR FEB 28 NET. Shr 51 cts vs 46 cts Shr diluted 44 cts vs 41 cts Net 2,267,000 vs 2,055,000 Sales 87.3 mln vs 70.4 mln Nine mths Shr 1.20 dlrs vs 1.12 dlrs Shr diluted 1.07 dlrs vs 1.03 dlrs Net 5,318,000 vs 4,958,000 Sales 243.7 mln vs 198.7 mln  
CARDINAL INDUSTRIES <CDNI> RESTATES NET LOWER. Cardinal Industries Inc said it restated earnings for the first nine months of 1986 to 235,000 dlrs, or nine cts per share, from 485,000 dlrs, or 18 cts, reported previously due to the failure of an automated accounting system installed in mid-year and replaced in the fourth quarter. The company said its Reliance segment sustained a significant operating loss for the full year 1986 due to the accounting problems and increased promotional and advertising expenses.  For the full year, it said it earned 284,000 dlrs, or 10 cts a share, up from 271,000 dlrs, or 10 cts, in 1985. Cardinal Industries said revenues for the year were 30.7 mln dlrs, up from 23.0 mln dlrs in 1985. The company said for the first quarter of 1987, earnings were about 48,000 dlrs, up from 13,000 dlrs or nil per share in the year ago period.  The year-ago first quarter earnings, however, have been restated from 101,000 dlrs or four cts per share.  It said sales for the first quarter were about 8,363,000 dlrs, up from 6,636,000 dlrs. For the first half of 1986, the company said it restated earnings to 141,000 dlrs or five cts per share from 340,000 dlrs or 12 cts per share reported previously.  
INTERCO INC 4TH QTR SHR 99 CTS VS 97 CTS.  INTERCO INC 4TH QTR SHR 99 CTS VS 97 CTS  
STARTEL <STAS> TO HAVE LOSS, SALES DROP. StarTel Corp said it expects to report a first quartter loss on a 25 to 30 pct revenue fall from the year-earlier 2,524,000 dlrs. The company earned 64,000 dlrs in last year's first quarter.  
DATRON SYSTEMS <DTSI> SEES LOWER YEAR NET. Datron Systems Inc said it expects to report a falloff in earnings for the year ended March 31 of about 25 pct from fiscal 1986 levels. In fiscal 1986, Datron earned 1,776,000 dlrs. The company said new orders for the year just ended, however, rose 50 pct to 26 mln dlrs, bringing backlog at year-end to 19 mln dlrs.  
DATA GENERAL TO TAKE 18.2 MLN DLR PRETAX CHARGE TO REDEEM 150 MLN DLRS OF DEBT.  DATA GENERAL TO TAKE 18.2 MLN DLR PRETAX CHARGE TO REDEEM 150 MLN DLRS OF DEBT  
<BEDFORD COMPUTER CORP> YEAR NET. Shr not given Net profit 1,033,000 vs loss 4,346,000 Sales 6,060,000 vs 5,818,000 NOTE: Company operating in Chapter 11 bankruptcy. 1985 sales exclude contract revenues of 3,217,000 dlrs. 1986 net includes reversal of 597,000 dlrs of reserves no longer deemed necessary and tax credit 340,000 dlrs.  
INTERCO INC <ISS> 4TH QTR FEB 28 NET. Shr 99 cts vs 97 cts Net 31,011,000 vs 30,899,000 Sales 651.5 mln vs 583.1 mln Year Shr 3.13 dlrs vs 2.92 dlrs Net 98,643,000 vs 92,347,000 Sales 2.61 billion vs 2.51 billion NOTE: 1986 results reflect two-for-one stock split of July 23, 1986  
HOUSEHOLD INT'L <HI> PROJECTS EARNINGS RISE. Household International Inc said it expects its fully diluted earnings per share for the first quarter to be about 35 pct above the same year-ago period. It also looks for 1987 full-year fully diluted earnings to be about 20 pct higher than the record 4.31 dlrs a share reported for 1986. Chairman Donald Clark, in remarks prepared for delivery to New York security analysts, cited increased earnings from Household Financial Services and "excellent return on equity from Household Manufacturing, combined with the impact of our share repurchase program, will result in higher earnings per share and improved return on equity in 1987."  
DATA GENERAL <DGN> TO TAKE 2ND QTR CHARGE. Data General Corp said it expects to record an extraordinary pretax charge of about 18.2 mln dlrs in the second quarter ended March 28. The company said the charge will result from a redemption of debt. On May 18, Data General said, it will redeem 150 mln dlrs of outstanding 12-3/8 pct sinking fund debentures due 2015. The redemption price will be 111.138 pct of the total principal amount of notes then outstanding plus accrued interest to the redemption date, it said. No interest will accrue or will be payable on the debentures starting May 18, the computer and communications company said. Data General reported a loss of 1.8 mln dlrs or six cts a share for the second quarter ended March 29, 1986. The loss included a charge of 3.8 mln dlrs from redemption of debentures. In the year-ago quarter, revenues fell less than one pct to 318.8 mln dlrs.  
ON-LINE SOFTWARE <OSI> 3RD QTR FEB 28 NET. Shr primary 34 cts vs 17 cts Shr diluted 33 cts vs 17 cts Net 1,487,000 vs 686,000 Rev 19.8 mln vs 8.8 mln Nine months Shr primary 77 cts vs 43 cts Shr diluted 75 cts vs 43 cts Net 3,240,000 vs 1,710, 000 Rev 42.2 mln vs 25.0 mln NOTE: Company's full name is On-Line Software International Inc. The qtr and year-to-date results include the operations, since the end of October 1986, of a business purchase from Martin Marietta Corp <ML>. In fiscal 1987 ending May 31 the company initially adopted FASB statement number 86 and, as required, capitalized certain software deveopment costs. During the qtr and nine months period ended Febraury 28, 1987 the company capitalized pre-tax amounts of 746,000 dlrs and 1,445,000 dlrs of development costs, respectively.  
TYCO LABORATORIES <TYC> 3RD QTR FEB 28 NET. Shr primary 58 cts vs 66 cts Shr diluted 54 cts vs 66 cts Net 10.1 mln vs 11.4 mln Revs 266.2 mln vs 194.6 mln Avg shrs 17.4 mln vs 17.1 mln Nine mths Shr primary 1.78 dlrs vs 1.58 dlrs Shr diluted 1.65 dlrs vs 1.58 dlrs Net 30.9 mln vs 27.1 mln Revs 823.8 mln vs 511.0 mln Avg shrs 17.4 mln vs 17.3 mln NOTE: prior qtr and nine mths include 3.1 mln dlrs, or 18 cts per share, from gain on partial settlement on an insurance claim. nine mths 1987 includes seven cts gain for partial settlement on an insurance claim. Results of Flow Control operations have been included since its acquisition from ITT Corp on Jan 31 1986. nine mths prior includes extraordinary gain 2.3 mln dlrs, or 14 cts per share, for replacement of a pension plan.  
GOLD FIELDS OF S. AFRICA PROFIT FALLS IN QUARTER. 1ST QTR TO MARCH 31 Working profit 487.50 mln rand vs 559.59 mln Tax 274.28 mln vs 302.15 mln Net 264.32 mln vs 300.99 mln Tonnes milled 3.74 mln vs 3.72 mln Gold production 30,865 kgs vs 30,236 kgs Gold revenue 846.05 mln rand vs 907.36 mln Working costs 358.56 mln vs 347.77 mln Avg price per kg 27,371 rand vs 29,964 NOTE - Full name of company is Gold Fields of South Africa Ltd <GLDF.J>.  
WALL STREET STOCKS/MARION LABS <MKC>. Marion Laboratories Inc's stock rose sharply today after the company presented a bullish earnings scenario at a meeting for pharmaceutical analysts Monday, traders and analysts said. The company said it expects earnings for fiscal 1987, ending June 30, to rise more than 75 pct over a year ago. That pronouncement encouraged analyst David Crossen of Sanford C. Bernstein and Co to raise his earnings estimates for the company to 1.28 dlrs a share in 1987, compared to his previous estimate of 1.20 dlrs a share. Last year the company earned 70 cts a share. Marion's stock gained 3-1/4 to 75-1/2. At the meeting of pharmaceutical analysts, Marion's president Fred Lyons Jr. said Wall Street eanrings estimates of 1.10-1.15 dlrs a share for fiscal 1987 "are expected to cause even the aggressive side of this range to be 10 to 15 cts low." Lyons said the strong performance in the second half of this year will result from the fourth quarter introduction of 90 mg and 120 mg Cardizem tablets. Analyst Crossen said that Cardizem, which treats angina, is also expected to be approved for the treatment of hypertension by the end of the year. Crossen said "because Marion is still just a small company, the growth of Cardizem is having a big impact on the bottom line." He raised fiscal 1988 earnings estimates to 2.15 dlrs a share from his previous estimate of 2.05 dlrs a share. "The company has a broad new product pipeline in the industry and as far as I am concerned, it is the most innovative company in the business," he said. For the five years through 1991, Crossen expects Marion to have a growth rate of 55 pct.  
ROLLS APPROACHES FLOAT WITH PROFITS SET TO RISE. State-owned engine maker <Rolls Royce Plc> launches its prospectus for privatisation tomorrow with many analysts forecasting higher profits this year. But it is likely to miss contracts to power the proposed <Airbus Industrie> A340 aircraft. The company's so-called "pathfinder prospectus" gives all the details of its stock market flotation except for the price at which shares will be offered. Last month, the company announced that pretax profits rose in 1986 to 120 mln stg from 81 mln the year before. Brokers Barclays de Zoete Wedd, BZW, sees 155 mln profit for 1987. Analyst Tim Harris of Phillips and Drew said rising profits and a low tax charge would be offset by the fact that Rolls operated in a sector which traditionally attracted low ratings. Assuming the company was valued at around eight times earnings, this would give a selling price valuing it at about 1.2 billion, though he said the recent good performance of the aerospace sector could nudge this figure upwards. BZW is currently forecasting a higher sale price at between 1.5 billion and 1.7 billion. The price will be increased by it being likely to have much of its debt wiped off by a government anxious to assure the company's health when it has to fend for itself. Rolls was rescued from bankruptcy and taken into state ownership in 1971. When the government announced the sale, it said it would inject permanent capital equivalent to net debt -- around 250 mln stg at end-1986 -- into the company. Analysts noted this was necessary to ensure Rolls a credit rating to match those of its main competitors such as General Electric Co <GE.N> and United Technologies Corp's <UTX.N> Pratt and Whitney unit.  
NEW BEDFORD INSTITUTION FOR SAVINGS <NBBS> YEAR. Net 12.3 mln vs 6,438,000 NOTE: Company went public in March.  
PHOTRONICS CORP <PHOT> YEAR FEB 28 NET. Shr 64 cts vs 38 cts Net 1,062,000 vs 585,000 Sales 13.6 mln vs 9,262,000  
OCEAN BIO-CHEM INC <OBCI> YEAR NET. Shr eight cts vs seven cts Net 215,821 vs 196,873 Sales 3,112,571 vs 2,649,003  
ENVIRONMENTAL POWER CORP <POWR> YEAR NET. Shr profit 25 cts vs loss 15 cts Net profit 998,000 vs loss 612,000 Revs 8,086,000 vs 365,000  
SUPER RITE FOODS INC <SRFI> SETS QTRLY PAYOUT. Qtrly div five cts vs five cts prior Pay April 27 Record April 20  
MILTON ROY CO <MRC> SETS QUARTERLY. Qtly div 11 cts vs 11 cts prior Pay June 15 Record May 15  
COLONIAL BANCGROUP INC <CLBGA> 1ST QTR NET. Shr 25 cts vs 55 cts Net 1.3 mln vs 2,460,000 NOTE: 1987 1st qtr includes loan write-offs at banking subsidiary, The Colonial Bank of Mobile, due to loan losses, of 1.3 mln dlrs or 25 cts a share.  
Dresdner to propose 1986 dividend 10 marks vs same, one-for-18 bonus share issue.  Dresdner to propose 1986 dividend 10 marks vs same, one-for-18 bonus share issue  
WEIS MARKETS <WMK> IN THREE FOR TWO STOCK SPLIT. Weis Markets Inc said its board declared a three-for-two stock split for holders of record May 1, 1987, with a distribution date of May 22, 1987. The company also said a regular quarterly dividend of 16 cts per share on the pre-split shares will be paid May 22 to shareholders of record May 1.  
MCCORMICK CAPITAL <MKOR> 1986 YEAR NET. Shr primary 24 cts vs 25 cts Shr diluted 21 cts vs 25 cts Net 530,583 vs 493,423 Revs 10.2 mln vs 9,834,578  
OLD FASHION FOODS INC <OFFI> 3RD QTR FEB 28 NET. Shr 10 cts vs 10 cts Net 131,000 vs 135,000 Revs 4,222,000 vs 3,656,000 Avg shrs 1,278,529 vs 1,356,672 Nine mths Shr 31 cts vs 31 cts Net 406,000 vs 426,000 Revs 12.3 mln vs 11.0 mln Avg shrs 1,330,511 vs 1,361,421  
CONSOLIDATED-BATHURST SEES BETTER MARKET. (Consolidated-Bathurst Inc) said it expects improvement in the pulp and paper sector shown in the second half of 1986 to continue this year. The continued improvement would be due to good market demand, better product prices and high operating capacity, the company said in its annual report. Consolidated-Bathurst, which reported operating profit of 104 mln dlrs last year on sales of 2.02 billion dlrs, said its joint-venture acquisition of a market pulp mill at Castlegar, B.C. last year broadens its product range and will contribute to equity earnings. Last year's results were up from 1985 operating profit of 80 mln dlrs and sales of 1.73 billion dlrs. The company said it views its near-term prospects with improved optimism. It said results from its Bridgewater newsprint mill in the U.K. should improve greatly this year due to stronger capacity and production and more favorable market conditions. It said it anticipates a return to profitability in 1987 for its Diamond-Bathurst Inc (DBH) subsidiary, which lost 6.2 mln U.S. dlrs and underwent a reorganization last year, and expects higher sales and earnings for its other North American packaging divisions. Consolidated-Bathurst said the outlook for its Europa Carton unit is mixed. It said the effect of trade disputes between the United States and the European Economic Community on the West German economy and the higher value of the mark may lead to increased costs which could not be offset by price increases.  
CUMMINS ENGINE <CUM> SEES IMPROVED EARNINGS. Cummins Engine Co said it told shareholders higher engine orders to the North American heavy-duty truck market will result in improved earnings in the first quarter. Cummins said the company should make progress this year and next toward its goal of five pct profitability. Cummins recorded net income of 3,743,000 dlrs, or 38 cts per share, on sales of 516.9 mln dlrs. It said it expects 1987 North American heavy-duty truck production to total 135,000 units, an 8.5 pct increase from 1986. Cummins said it expects capital expenditures to total about 155 mln dlrs, down from 274 mln dlrs the year before.  
MILTON ROY CO <MRC> SETS REGULAR DIVIDEND. Qtly div 11 cts vs 11 cts prior Pay June 15 Record May 15  
OHIO MATTRESS CO <OMT> 1ST QTR FEB 28 NET. Shr 15 cts vs 15 cts Net 2,407,000 vs 2,393,000 Revs 117.2 mln vs 67.1 mln Note: Aggregate judgments in antitrust and other suits of 77 mln dlrs not included in year-ago or 1987 1st qtr results. Company said any portion of this amount, including related interest or attorneys' fees, would be proportionately reflected as a reduction in its minority interest of Sealy recorded on its consolidated balance sheet upon final settlement of litigation. Note: Consolidated balance sheet as of end of 1st qtr reflects after-tax impact of 50 mln dlr settlement won by Sealy licensee in Michigan. 1987 results include all operations of all acquired Sealy-brand licensees and 82 pct of Sealy. Remaining 18 pct of Sealy is recorded as minority interest. Proceeds of 170 mln dlrs from sale of stock and debt were used to reduce balance of revolving credit agreement to 80 mln dlrs. Accordingly, 250 mln dlr obligation to banks under credit agreement was recorded as a long-term liability as of end of 1st qtr. Note: In April, company intends to acquire Michigan Sealy licensee and fund transaction with 25 mln dlrs in cash and borrow balance required from banks.  
BURLINGTON NORTHERN INC 1ST QTR SHR PROFIT 93 CTS VS LOSS 3.55 DLRS.  BURLINGTON NORTHERN INC 1ST QTR SHR PROFIT 93 CTS VS LOSS 3.55 DLRS  
ARTISTIC GREETINGS <ARTG> SEES RECOVERY IN NET. Artistic Greetings Inc said it expects a rebound in profits and an increase in sales in 1987 as costs connected with computerization, staffing, traning and catalog sales start to taper off. Today it reported 1986 earnings of 294,650 dlrs, down from 371,064 dlrs a year before, on revenues of 8,157,864 dlrs, up from 7,054,709 dlrs.  
CUMMINS ENGINE CO INC <CUM> SETS PAYOUT. Qtly div 55 cts vs 55 cts prior Pay June 15 Record June 1  
CENTRAL BANCSHARES <CBSS> 1ST QTR NET. Shr 52 cts vs 45 cts Net 10.9 mln vs 9,498,000 Assets 3.60 billion vs 3.25 billion Deposits 2.45 billion vs 2.23 billion Loans 2.16 billion vs 1.67 billion NOTE: full name of company is Central Bancshares of the South Inc.  
GREEN TREE ACCEPTANCE INC <GNT> 1ST QTR NET. Shr 50 cts vs 40 cts Net 9,421,000 vs 9,312,000 Rev 37.7 mln vs 36.3 mln Avg shrs 17,049,920 vs 21,173,570 NOTE: Per-share results adjusted for two-for-one common stock split in June 1986  
TOTAL SYSTEM SERVICES INC <TSYS> 1ST QTR NET. Shr nine cts vs seven cts Net 1,356,000 vs 1,041,000 Revs 9.7 mln vs 8.4 mln  
HUBCO INC <HCO> 1ST QTR NET. Shr 38 cts vs 30 cts Net 1,356,754 vs 1,048,340 Assets 448.5 mln vs 407.4 mln  
<WILDERNESS EXPERIENCE INC> 4TH QTR LOSS. Period ended Jan 31 Shr loss three cts vs loss two cts Net loss 183,500 vs loss 163,800 Sales 608,800 vs 1,156,100 Year Shr loss 16 cts vs loss 21 cts Net loss 1,128,600 vs loss 1,081,600 Sales 3,811,200 vs 6,968,700  
TOTAL SYSTEMS SERVICES <TSYS> 1ST QTR NET. Shr nine cts vs seven cts Net 1,356,000 vs 1,041,000 Revs 9,729,000 vs 8,367,000  
PREMDOR PLANS TWO-FOR-ONE STOCK SPLIT. <Premdor Inc> said it planned a two-for-one common stock split, subject to shareholder approval at the May 4 annual meeting. It said the split, if approved, would take effect on May 20. Premdor manufactures and sells wood doors.  
TELETRAK ADVANCED TECHNOLOGY 4TH QTR LOSS. Shr loss two cts vs loss two cts Net loss 183,597 vs loss 136,990 Rev 36,600 vs 61,763 Avg shares 12,355,000 vs 9,205,000 Year Shr loss five cts vs loss five cts Net loss 571,336 vs loss 416,595 Rev 103,327 vs 61,763 Avg shares 12,355,000 vs 8,705,000 NOTE: Company's full name is <Teletrak Advanced Technology Systems Inc and it is a unit of Helm Resources <H>. 1985 net loss includes loss from discontinued operations of 278,156 dlrs.  
HOUSTON OIL TRUST <HO> HALTS ROYALTIES. Houston Oil Trust said there will be no royalty funds available for distribution to unit holders in April. It also said that based on recent independent petroleum engineers' estimates of Oct 31, 1986, there may be no amounts avialable for distribution the rest of the year.  
UPPER PENINSULA POWER CO <UPEN> SETS PAYOUT. Qtly dividend 52-1/2 cts vs 52-1/2 cts Pay May one record April 17  
ITT CORP <ITT> DECLARES DIVIDEND. Qtly div 25 cts vs 25 cts prior Pay July 1 Record May 7  
PACIFIC LIGHTING CORP <PLT> QTLY DIVIDEND. Shr 87 cts vs 87 cts prior qtr Pay May 15 Record April 20  
STALEY CONTINENTAL <STA> REGULAR DIVIDEND SET. Qtly div 20 cts vs 20 cts previously Pay June Eight Record May 22  
ITT CORP <ITT> REGULAR QTRLY DIVIDEND. Qtly div 25 cts vs 25 cts prior Payable July one Record May 7  
RONSON CORP <RONC> 4TH QTR DEC 31. Shr loss 21 cts vs loss seven cts Net loss 971,000 vs loss 318,000 Revs 8.3 mln vs 9.2 mln Year Shr loss 43 cts vs profit 14 cts Net loss 1.9 mln vs profit 606,000 Revs 32.5 mln vs 31.9 mln NOTE:1986 loss includes reserves of 329,000, 1985 includes tax benefit of 352,000, 96,000, and 570,000 dlrs.1986 4th qtr includes 850,000 dlrs writedowns, 499,000 dlr gain from sale. 1985 net includes extraordinary items of 108,000 and gain on sale of 1.6 mln dlrs , tax carryforward gain of 246,000 dlrs.  
HI-SHEAR INDUSTRIES INC <HSI> SETS PAYOUT. Qtrly div 11 cts vs 11 cts prior Pay April 28 Record April 20  
SEAGATE TECHNOLOGY <SGAT> 3RD QTR MARCH 3 NET. Shr 81 cts vs 24 cts Net 40,453,000 vs 11,833,000 Sales 267.1 mln vs 127.0 mln Avg shrs 50,226,000 vs 48,337,000 Nine Mths Shr 2.07 dlrs vs 38 cts Net 102,564,000 vs 18,127,000 Sales 708.0 mln vs 318.3 mln Avg shrs 49,573,000 vs 48,024,000  
SPARTECH <SPTN> REVERSE STOCK SPLIT APPROVED. Spartech Corp said shareholders at the annual meeting approved a reverse stock split of the common stock, on a one-for-five basis. The company said the split was necessary in preparation for an offering of 25 mln dlrs in convertible subordinated debentures, expected to be made soon through Kidder, Peabody and Co. It said the new common stock will begin trading April 8 under the symbol "SPTNd." Separately, Spartech said its board appointed Bradley Buechler as president, filling a vacancy. It said Lawrence Powers remains as chairman. Buechler, prior to his promotion, was executive vice president and chief operating officer. He will retain his duties as chief operating officer.  
PEOPLE RIDESHARING SYSTEMS <RIDE> 1ST QTR NET. Shr primary profit two cts vs loss nine cts Shr diluted profit one cent vs loss six cts Net profit 17,156 vs loss 89,594 Revs 2,360,220 vs 3,208,802 Avg shrs 870,000 vs 1,026,627 NOTE: full name of company is People Ridesharing Systems Inc.  
SEEQ TECHNOLOGY INC <SEEQ> 2ND QTR MARCH 31. Shr profit eight cts vs loss 1.84 dlrs Net profit 785,000 vs loss 4,279,000 Revs 10.4 mln vs 8,464,000 Avg shrs 9,649,000 vs 2,664,000 Six Mths Shr loss nine cts vs loss 4.09 dlrs Net loss 262,000 vs loss 9,689,000 Revs 19.2 mln vs 15.6 mln Avg shrs 2,874,000 vs 2,660,000  
NACCO INDUSTRIES <NC> TO REPORT 2ND QTR GAIN. Nacco Industries Inc said it will report a gain in the second quarter of about 11.5 mln dlrs or 1.25 dlrs a share from the sale of stock of a subsidiary. Nacco said its North American Coal Corp unit has received notice that Consolidation Coal Co, a unit of Du Pont Co <DD>, will exercise an option to buy all of the stock of Quarto Mining Co, a subsidiary of North American Coal. For the stock, North American Coal will receive about 15.2 mln dlrs, 5.2 mln of which will be paid at closing April 10 and the rest in installments, the company said. In addition, Quarto will pay a dividend to North American Coal of about 10 mln dlrs from retained earnings before closing. The funds were previously used to finance mining operations. Consolidation Coal got the option from the Capco Group of utilities, which received the option from Nacco in 1981. Nacco reported earnings of 10.8 mln dlrs or 1.11 dlrs a share in last year's second quarter. In 1986, Quarto generated 5.9 mln dlrs in net income, equal to 62 cts a share, of Nacco's total 1986 earnings of 3.48 dlrs a share. Quarto produced about 3.6 mln short tons of the 24.3 mln tons produced by North American Coal in 1986, Nacco said.  
BUFFTON <BUFF> TO POST INVESTIGATION CHARGE. Buffton Corp said it will conduct an investigation on a plant designated as a Superfund Site, which will result in a charge of about six cts per share in its second quarter. In the year ago second quarter, Buffton reported net income of 10 cts a share or 330,000 dlrs on sales of 10.3 mln dlrs. The study should be completed in nine months and will determine any clean-up or remedial action that may be required. Robintech Inc, the plant's former owner, will split the cost. Buffton said its share will cost 400,000 dlrs.  
REPUBLICBANK <RPT> TO RECLASSIFY BRAZIL LOANS. RepublicBank Corp said it has placed 182.6 mln dlrs of all intermediate and term loans to Brazil on a non-accrual basis as of March 31. It said the reclassification will reduce first quarter earnings by 2.8 mln dlrs after taxes, and 11 mln dlrs after taxes for all of 1987, if Brazil does not change its position of a moratorium on interest payments. RepublicBank also said its net income for the first quarter is expected to be about 10.4 mln dlrs or 30 cts a share on a fully diluted basis. In the year-ago first quarter the company earned 23.1 mln dlrs or 75 cts a share. The company also said its first quarter results are expected to include a provision for loan losses of 55 mln dlrs, about 20 mln dlrs over net loan-charge-offs of about 35 mln dlrs. It said the provision will increase loan losses to about 328 mln dlrs or 2.2 pct of loans. RepublicBank, with total assets of about 21 billion dlrs, announced in December an agreement with InterFirst Corp <IFC> to form First RepublicBank Corp. If the merger is approved by regulatory agencies and stockholders, it would create the 12th largest bank holding company in the United States.  
TRILON DECLARES STOCK DIVIDEND. <Trilon Financial Corp> said it declared a stock dividend of one class A share for each two class A shares held, payable May 15 to shareholders of record on April 30.  
AMERICAN AGRONOMICS CORP <AGR> 2ND QTR FEB 28. Shr profit one cts vs loss three cts Net profit 641,000 vs loss 992,000 Revs 26.0 mln vs 19.0 mln Six months Shr profit six cts vs loss six cts Net profit 2.8 mln vs loss 1.8 mln Revs 39.0 mln vs 37.4 mln NOTE:1987 six months includes gain of four cts from change in accounting principle.  
HELIG-MEYERS CO <HMY> INCREASES DIVIDEND. Qtly div eight cts vs seven cts prior Payable May 15 Record APril 29  
HELIG-MEYERS CO <HMY> YEAR FEB 28. Shr 1.30 dlrs vs 1.07 dlrs Net 13.6 mln dlrs vs 10.2 mln Revs 271.2 mln vs 182.3 mln NOTE:1986 results reflect year 11 month period because company changed fiscal year to end February 28 from March 31.  
KELLY OIL AND GAS PARTNERS <KLY> YEAR DEC 31. Shr 36 cts vs 43 cts Net 1.3 mln vs 1.7 mln Revs 9.0 mln vs 7.9 mln  
TCW CONVERTIBLE SECURITIES <CVT> SETS DIVIDEND. TCW Convertible Securities Fund Inc said its board declared an initial quarterly dividend of three cents per share, payable April 30 to shareholders of record April 17. TCW said it anticipates paying a regular quarterly dividend. The company made its initial public stock offering March five.  
COMPUTER TERMINAL SYSTEMS <CPML> COMPLETES SALE. Computer Terminal Systems Inc said it has completed the sale of 200,000 shares of its common stock, and warrants to acquire an additional one mln shares, to <Sedio N.V.> of Lugano, Switzerland for 50,000 dlrs. The company said the warrants are exercisable for five years at a purchase price of .125 dlrs per share. Computer Terminal said Sedio also has the right to buy additional shares and increase its total holdings up to 40 pct of the Computer Terminal's outstanding common stock under certain circumstances involving change of control at the company. The company said if the conditions occur the warrants would be exercisable at a price equal to 75 pct of its common stock's market price at the time, not to exceed 1.50 dlrs per share. Computer Terminal also said it sold the technolgy rights to its Dot Matrix impact technology, including any future improvements, to <Woodco Inc> of Houston, Tex. for 200,000 dlrs. But, it said it would continue to be the exclusive worldwide licensee of the technology for Woodco. The company said the moves were part of its reorganization plan and would help pay current operation costs and ensure product delivery. Computer Terminal makes computer generated labels, forms, tags and ticket printers and terminals.  
CHEMLAWN <CHEM> RISES ON HOPES FOR HIGHER BIDS. ChemLawn Corp <CHEM> could attract a higher bid than the 27 dlrs per share offered by Waste Management Inc <WNX>, Wall Street arbitrageurs said. Shares of ChemLawn shot up 11-5/8 to 29-3/8 in over-the-counter- trading with 3.8 mln of the company's 10.1 mln shares changing hands by late afternoon. "This company could go for 10 times cash flow or 30 dlrs, maybe 32 dollars depending on whether there is a competing bidder," an arbitrageur said. Waste Management's tender offer, announced before the opening today, expires March 25. "This is totally by surprise," said Debra Strohmaier, a ChemLawn spokeswoman. The company's board held a regularly scheduled meeting today and was discussing the Waste Management announcement. She said a statement was expected but it was not certain when it would be ready. She was unable to say if there had been any prior contact between Waste Management and ChemLawn officials. "I think they will resist it," said Elliott Schlang, analyst at Prescott, Ball and Turben Inc. "Any company that doesn't like a surprise attack would." Arbitrageurs pointed out it is difficult to resist tender offers for any and all shares for cash. Schlang said ChemLawn could try to find a white knight if does not want to be acquired by Waste Management. Analyst Rosemarie Morbelli of Ingalls and Snyder said ServiceMaster Companies L.P. <SVM> or Rollins Inc <ROL> were examples of companies that could be interested. ChemLawn, with about two mln customers, is the largest U.S. company involved in application of fertilizers, pesticides and herbicides on lawns. Waste Management is involved in removal of wastes. Schlang said ChemLawn's customer base could be valuable to another company that wants to capitalize on a strong residential and commercial distribution system. Both Schlang and Morbelli noted that high growth rates had catapulted ChemLawn's share price into the mid-30's in 1983 but the stock languished as the rate of growth slowed. Schlang said the company's profits are concentrated in the fourth quarter. In 1986 ChemLawn earned 1.19 dlrs per share for the full year, and 2.58 dlrs in the fourth quarter. Morbelli noted ChemLawn competes with thousands of individual entrepreuers who offer lawn and garden care sevice.  
<COFAB INC> BUYS GULFEX FOR UNDISCLOSED AMOUNT. CoFAB Inc said it acquired <Gulfex Inc>, a Houston-based fabricator of custom high-pressure process vessels for the energy and petrochemical industries. CoFAB said its group of companies manufacture specialized cooling and lubricating systems for the oil and gas, petrochemical, utility, pulp and paper and marine industries.  
INVESTMENT FIRMS CUT CYCLOPS <CYL> STAKE. A group of affiliated New York investment firms said they lowered their stake in Cyclops Corp to 260,500 shares, or 6.4 pct of the total outstanding common stock, from 370,500 shares, or 9.2 pct. In a filing with the Securities and Exchange Commission, the group, led by Mutual Shares Corp, said it sold 110,000 Cyclops common shares on Feb 17 and 19 for 10.0 mln dlrs.  
AMERICAN EXPRESS <AXP> SEEN IN POSSIBLE SPINNOFF. American Express Co remained silent on market rumors it would spinoff all or part of its Shearson Lehman Brothers Inc, but some analysts said the company may be considering such a move because it is unhappy with the market value of its stock. American Express stock got a lift from the rumor, as the market calculated a partially public Shearson may command a good market value, thereby boosting the total value of American Express. The rumor also was accompanied by talk the financial services firm would split its stock and boost its dividend. American Express closed on the New York Stock Exchange at 72-5/8, up 4-1/8 on heavy volume. American Express would not comment on the rumors or its stock activity. Analysts said comments by the company at an analysts' meeting Tuesday helped fuel the rumors as did an announcement yesterday of management changes. At the meeting, company officials said American Express stock is undervalued and does not fully reflect the performance of Shearson, according to analysts. Yesterday, Shearson said it was elevating its chief operating officer, Jeffery Lane, to the added position of president, which had been vacant. It also created four new positions for chairmen of its operating divisions. Analysts speculated a partial spinoff would make most sense, contrary to one variation on market rumors of a total spinoff. Some analysts, however, disagreed that any spinoff of Shearson would be good since it is a strong profit center for American Express, contributing about 20 pct of earnings last year. "I think it is highly unlikely that American Express is going to sell shearson," said Perrin Long of Lipper Analytical. He questioned what would be a better investment than "a very profitable securities firm." Several analysts said American Express is not in need of cash, which might be the only reason to sell a part of a strong asset. But others believe the company could very well of considered the option of spinning out part of Shearson, and one rumor suggests selling about 20 pct of it in the market. Larry Eckenfelder of Prudential-Bache Securities said he believes American Express could have considered a partial spinoff in the past. "Shearson being as profitable as it is would have fetched a big premium in the market place. Shearson's book value is in the 1.4 mln dlr range. Shearson in the market place would probably be worth three to 3.5 bilion dlrs in terms of market capitalization," said Eckenfelder. Some analysts said American Express could use capital since it plans to expand globally. "They have enormous internal growth plans that takes capital. You want your stock to reflect realistic valuations to enhance your ability to make all kinds of endeavors down the road," said E.F. Hutton Group analyst Michael Lewis. "They've outlined the fact that they're investing heavily in the future, which goes heavily into the international arena," said Lewis. "...That does not preclude acquisitions and divestitures along the way," he said. Lewis said if American Express reduced its exposure to the brokerage business by selling part of shearson, its stock might better reflect other assets, such as the travel related services business. "It could find its true water mark with a lesser exposure to brokerage. The value of the other components could command a higher multiple because they constitute a higher percentage of the total operating earnings of the company," he said. Lewis said Shearson contributed 316 mln in after-tax operating earnings, up from about 200 mln dlrs in 1985.  
HONG KONG FIRM UPS WRATHER<WCO> STAKE TO 11 PCT. Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Wrather Corp to 816,000 shares, or 11.3 pct of the total outstanding common stock, from 453,300 shares, or 6.3 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand company, said it bought 362,700 Wrather common shares between Feb 13 and 24 for 6.6 mln dlrs. When it first disclosed its stake in Wrather earlier this month, it said it bought the stock for investment purposes.  
LIEBERT CORP <LIEB> APPROVES MERGER. Liebert Corp said its shareholders approved the merger of a wholly-owned subsidiary of Emerson Electric Co <EMR>. Under the terms of the merger, each Liebert shareholder will receive .3322 shares of Emerson stock for each Liebert share.  
GULF APPLIED TECHNOLOGIES <GATS> SELLS UNITS. Gulf Applied Technologies Inc said it sold its subsidiaries engaged in pipeline and terminal operations for 12.2 mln dlrs. The company said the sale is subject to certain post closing adjustments, which it did not explain.  
INVESTMENT GROUP RAISES ROBESON <RBSN> STAKE. A group of affiliated Miami-based investment firms led by Fundamental Management Corp said it raised its stake in Robeson Industries Corp to 238,000 shares, or 14.6 pct of the total, from 205,000 or 12.8 pct. In a filing with the Securities and Exchange Commission, the group said it bought 32,800 Robeson common shares between Jan 26 and Feb 9 for 175,691 dlrs. The group said it may buy more shares and plans to study Robeson's operations. Afterwards it may recommend that management make changes in its operations. Fundamental Management Chairman Carl Singer was recently elected to the Robeson board.  
DREXEL OFFICIAL HAS STAKE IN EPSILON DATA <EPSI>. A senior official of Drexel Burnham Lambert Inc and his father told the Securities and Exchange Commission they have acquired 258,591 shares of Epsilon Data Management Inc, or 9.4 pct of the total outstanding. Kenneth Thomas, senior vice president-investments at Drexel's Los Angeles office, and his father, retired university professor C.A. Thomas, said they bought the stake for 2.1 mln dlrs primarily for investment purposes. They said they may buy more stock or sell some or all of their stake, depending on market conditions, but have no plans to seek control of the company.  
<NOVA> WINS GOVERNMENT OKAY FOR HUSKY <HYO> DEAL. Nova, the Canadian company that owns 56 pct of Husky Oil Ltd, said it received government approval for a transaction under which <Union Faith Canada Holding Ltd> would buy a 43 pct stake in Husky. Nova said the Minister of Regional and Industrial Expansion, Michel Cote, ruled that Union Faith's purchase of the Husky stake would not result in Husky ceding control to a non-Canadian company. It said this ruling was a key condition in completing the deal. Union Faith is equally owned by <Hutchison Whampoa Ltd> and <Hong Kong Electric Holdings Ltd>. Under the agreement with Union Faith, Husky will become a private company with Union Faith and Nova each holding 43 pct of its stock. Nine pct of Husky would be owned by relatives of Li Ka-Shing, chairman of Hutchison, and five pct by the Canadian Imperial Bank of Commerice.  
SUFFIELD FINANCIAL <SSBK> GETS FED APPROVAL. Suffield Financial Corp said the Federal Reserve Board approved its application to acquire Coastal Bancorp <CSBK>, Portland, Me. Suffield said it still needs the approval of the superintendent of Maine's banking department.  
VERSATILE TO SELL UNIT TO VICON. <Versatile Corp> said it agreed in principle to sell its Alberta-based Versatile Noble Cultivators Co division to Vicon Inc, of Ontario, for undisclosed terms. The division manufactures tillage and spraying equipment.  
VIDEOTRON BUYS INTO EXHIBIT COMPANY. (Groupe Videotron Ltd) said it agreed to buy 50 pct of (Groupe Promexpo Inc), a company which specializes in product exhibits, for three mln dlrs.  
CIRCUIT SYSTEMS <CSYI> BUYS BOARD MAKER. Circuit Systems Inc said it has bought all of the stock of (Ionic Industries Inc) in exchange for 3,677,272 shares of its common. Following the exchange there will be 4,969,643 shares of Circuit Systems stock outstanding. Ionic holders will own about 74 pct of the outstanding stock of Circuit Systems, it said. Ionic, a maker of circuit boards, had revenues of 8.4 mln dlrs and pretax profits of 232,000 dlrs in 1986, up from revenues of 5.9 mln and pretax profits of 204,000 dlrs in 1985, Circuit Systems said.  
NIPPON KOKAN STEEL AFFILIATES CONSIDERING MERGER. Toshin Steel Co Ltd <TOSS.T> and <Azuma Steel Co Ltd>, affiliates of Nippon Kokan KK <NKKT.T>, are considering a merger, company spokesmen said. Toshin Steel, owned 41.9 pct by Nippon Kokan, and Azuma Steel, owned 41.3 pct by Nippon Kokan, are expected to decide by the end of March, they said. Both firms have been struggling with losses caused by the recession in the steel industry and the yen's appreciation. Azuma Steel's current losses are estimated at 3.1 billion yen in the year ending March 31 against a 6.99 billion loss a year earlier, a spokesman said. The firm employs 1,100 workers Toshin Steel, with 1,700 workers, has given no forecast for the year ending March 31. But industry sources said they expected the company to show current losses of about five billion yen or more in 1986/87 compared with a 2.98 billion loss in 1985/86.  
SHV SAYS IT MAKING TENDER OFFER FOR UP TO 33 MLN SHARES IN IC GAS.  SHV SAYS IT MAKING TENDER OFFER FOR UP TO 33 MLN SHARES IN IC GAS  
WALLENBERGS FIGHT BID FOR SWEDISH MATCH STAKE. Sweden's Wallenberg group fought back a bid by the London-based Swedish financier Erik Penser to secure a large stake in Swedish Match <SMBS ST>, one of the companies at the core of their business empire. A statement issued by the Wallenberg holding companies AB Investor and Forvaltnings AB Providentia said they had taken over an option held by Nobel Industrier Sweden AB to acquire 33 pct of the voting rights in Swedish Match. Thre Wallenbergs paid Nobel Industrier <NOBL ST>, in which Penser group has a 72 pct stake, about 20 pct over the market price for the Swedish Match option, the statement said. Swedish Match's B shares open to foreign buyers closed at 424 crowns on Friday. The A shares -- with increased voting rights -- closed at 450 crowns for the restricted and 455 for the free shares. The statement said the deal increased Investor's stake to 49.4 pct of the voting rights and 14.8 pct of the share capital while Providentia is left holding 34.1 pct of the voting rights and 14.5 pct of the share capital in Swedish Match. The Wallenbergs' stake in Swedish Match had previously amounted to 52 pct of the voting rights in the company. The Swedish Match deal will cost the Wallenbergs about 400 mln crowns, share analysts said, making it one of the most expensise moves the group has undertaken in the last four years to defend its far-flung interests from outside predators. The Wallenbergs originally sold Nobel Industrier, an arms and chemicals group, to Penser in 1984 to pay for buying Volvo <VOLV ST> out of two other key group companies, Atlas Copco <ASTS ST> and Stora Koppabergs <SKPS ST>. Since then, the Wallenbergs were ousted as the largest shareholders in SKF (SKFR ST> by Skanska AB <SKBS ST> and Frederik Lundberg wrested control of Incentive AB from them. Lundberg, a Zurich-based Swedish property tycoon, also managed to acquire a 25 pct stake in another Wallenberg company, the diary equipment firm Alfa -Laval AB <ALFS ST>. During 1986, the Wallenbergs have been concentrating on building up their stake in Investor and Providentia to prevent any raid on the heart of their business empire. But analysts say the Wallenbergs' position in the electrical engineering firm ASEA AB <ASEA ST> is also too small at 12.6 pct of the voting rights and there has been growing speculation that the group will be forced to sell off fringe interests to protect its core activities.  
SHV SAYS IT MAKING TENDER OFFER FOR IC GAS. <SHV (United Kingdom) Holding Co Ltd> said it was making a tender offer for up to 33 mln ordinary shares in Imperial Continental Gas Association.<ICGS.L>. It said in a statement the offer was on the basis of 700p for each IC Gas ordinary and 252p for every one stg nominal of IC Gas loan stock. SHV already holds 6.8 mln IC Gas ordinary stock units representing around 4.9 pct of the current issued share capital. Successful completion of the offer would increase SHV's stake in IC Gas to 39.8 mln shares, representing around 27.9 pct of issued share capital, it said. The offer capitalises IC Gas at around one billion stg. It said it was tendering for both ordinary stock and loan stock, which when fully converted, gave a total of 33 mln IC Gas ordinary. It is making the tender offer through N.M. Rothschilds. IC Gas said in a statement it noted the SHV tender offer and the terms were being considered. It said a further statement would be made as soon as possible. REUTER...  
SALE TILNEY BUYS STAKE IN U.S. INSURANCE BROKER. <Sale Tilney Plc> said it has purchased 80 pct of the ordinary share capital of <B and R International Inc.>, a U.S. Insurance broker, for 5.6 mln dlrs. Sale is paying 3.6 mln dlrs in cash on completion, with the balance plus interest to be paid in equal instalments over the next six years. B and R posted pretax profit of 855,000 dlrs in the year to Dec 31, 1986 when it had net tangible assets of 563,000 dlrs.  
EXCO BUYS U.S. GOVERNMENT SECURITIES BROKER. <Exco International Plc>, a subsidiary of British and Commonwealth Shipping Co Plc <BCOM.L>, said it had agreed in principle to buy an 80 pct stake in <RMJ Holdings Corp> for about 79 mln dlrs. Exco Chairman Richard Lacy told Reuters the acquisition was being made from Bank of New York Co Inc <BK.N>, which currently holds a 50.1 pct, and from RMJ partners who hold the remainder. Bank of New York and the partners will retain about 10 pct each and these stakes will be bought over the next six years. RMJ is the holding company of RMJ Securities, one of the largest U.S. Government securities brokers. It is also involved in broking notes, obligations and other instruments sponsored by U.S. Federal agencies. Lacy said Exco had been considering buying a U.S. Government securities broker for the past four years and had made an offer for RMJ when it was sold by Security Pacific Corp <SPC.N> in 1985. RMJ was then valued at about 50 mln dlrs. B and C managing director Peter Goldie said RMJ would be bought at about the same multiple as Exco, suggesting net income of around 16 mln dlrs. The company's earnings had not been hit by the halving of brokerage fees some 14 months ago as volumes had since doubled. Lacy said that RMJ employed some 300 people, with 200 in the brokerage business and about 70 in its <SMS> unit, which provided computer software for the financial services community. RMJ Securities had offices in New York, where total market turnover of U.S. Government securities was 110 billion dlrs a day, and in London where it has 15 billion. It was also given permission last week to open an office in Tokyo where total market turnover had lifted rapidly to about five billion dlrs a day. The acquisition would contribute between five and 10 pct of B and C's share earnings in 1987 on a proforma basis.  
COLOROLL AGREES TO BUY U.S. WALLCOVERINGS COMPANY. <Coloroll Group Plc> said it has entered into a conditional agreement to acquire the business and assets of <Wallco Inc> and related companies for 14.5 mln dlrs. Miami-based Wallco manufactures and distributes wallcoverings and showed a pretax profit of 1.5 mln dlrs on turnover of 37 mln in the year ending June 1986. The total U.S. Market was estimated to be worth 840 mln dlrs in 1986, having grown by 47 pct in the previous five years, Coloroll said. The combined sales and profit of the enlarged Coloroll U.S. Business would be 67 mln and four mln dlrs respectively.  
SCIENTIFIC MICRO SYSTEMS <SMSI> ACUIRES SUPERMAC. Scientific Micro Systems Inc said it has acquired Supermac Technology, a rapidly growing supplier of enhancement products and disc drive subsystems for the Apple personal computer market. Scientific Micro said it acquired all the common stock of Supermac in exchange for 1.05 mln shares of its own common stock. The stock closed at 5.50 dlrs bid on Friday. Supermac, a privately held firm based in Mountain View, California, as is Scientific Micro, reported a net profit of 300,000 dlrs on revenue of 9.5 mln dlrs in fiscal 1986. It expects its revenue to approximately double in 1987.  
AMERICAN EXPRESS <AXP> VIEWING SHEARSON OPTIONS. American Express Co, rumored to be considering a spinoff of part of Shearson Lehman Brothers Inc, said it is studying a range of options for its brokerage unit that could improve Shearon's access to capital and help it meet broadening international competition. In a joint statement, American Express and Shearson said the actions under consideration are an integral part of American Express' worldwide financial services strategy and that the two companies have been having both internal and external discussions on the matters. American Express said no decision has been reached on the strategic options and that it and Shearson could ultimately decide to follow growth plans already in place. Last week, rumors circulated on Wall Street that the financial services giant was considering a spinoff of part of Shearson and there was speculation it may be considering selling a stake to a Japanese firm. Analysts said the speculation also focused on American Express selling 20 pct of the profitable brokerage firm to the public. There was some speculation that American Express had also considered a total spinoff of Shearson, but the plan was considered highly unlikely, analysts said. American Express said in the statement on Sunday that it will not comment on rumors and speculation and a spokesman would not go beyond the statement. The company also remained silent last Thursday and Friday, as rumors drove American Express stock up a total of 5-1/2 dlrs in two days to bring it to a Friday close at 74. It said it issued the statement on Sunday because a similar statement was being circulated to employees. Analysts have been divided on whether it makes sense for American Express to give up a stake in the wholly-owned brokerage, which improved its after-tax earnings by about 50 pct in the last year. Some analysts said American Express may consider spinning off part of Shearson because it is concerned that its stock price does not fully reflect the value of the brokerage firm. Shearson contributed 316 mln dlrs of American Express' 1.25 billion dlr net in 1986. American Express' ambitious plans for international growth may be also enhanced by the added cash that spinning out part of Shearson would bring. Analysts speculated that all of Shearson would have a market value of about 3.5 billion dlrs. To some however, the need for added capital is puzzling. "(American) Express is in a position where they can raise capital if they need to," said Larry Eckenfelder of Prudential-Bache Securities. Analysts said rumors were fed by the reorganization of Shearson management Wednesday. Chief operating officer Jeffrey Lane got the added, previously vacant, post of president. The reorganization also created four new positions for chairmen of Shearson's operating divisions, a move analysts speculated would allow Shearson to be a stand alone company. Analysts, contacted on Sunday said the statement does little to clarify last week's market speculation. It does confirm, however, that the financial services firm, which unsuccessfully attempted to expand Shearson with a major acquisition last year, is looking beyond its own walls for growth and positioning in the global market competition. Late last year, Shearson's takeover offer to the E.F. Hutton Group Inc was rejected by Hutton, and analysts said there had been speculation that Shearson also was rebuffed when it approached another major Wall Street brokerage.  
ROPAK <ROPK> HAS 34 PCT OF BUCKHORN <BKN>. Ropak Corp said it received and accepted about 456,968 common shares and 527,035 Series A convertible preferred shares of Buckhorn Inc at four dlrs and 5.75 dlrs each respectively in response to its tender offer that expired Friday, and it now owns 34.4 pct of Buckhorn voting power. The company had owned 63,000 common and 25,100 preferred shares before starting the hostile tender.  Ropak said it is borrowing the funds needed to buy the Buckhorn shares from its bank lender and will not need to use any funds that another bank had committed to provide under a margin loan. Ropak said it waived minimum acceptance requirements to buy the shares and intends to evaluate a number of possible ways of completing an acquisition of Buckhorn.  It said it hopes that Buckhorn's board will reevaluate its position and enter into meaningful negotiations.  
PENRIL <PNL> SEEKS TO SELL TWO UNITS. Penril Corp said it is seeking to sell its Triplett Electrical Instrument Corp subsidiary in Bluffton, Ohio, and Triplett's Alltest division in Hoffman Estates, Ill., as part of a plan to concentrate on its three profitable division and reduce its debt load. The company also said it is evaluating a plan to satisfy its obligations under its 10-7/8 pct subordinated notes but gave no details.  Interest on the notes is due today. Penril further said director Clifford L. Alexander Jr. has resigned from the board.  It gave no reason. Penril said shareholders at the annual meeting approved the limitation of directors' liability.  
<DALE BURDETT INC> FACES DAMAGE CLAIM. Dale Burdett Inc said it faces damages claims totalling about 420,000 dlrs from the former owners of Burdett Publications Inc. The company said on February 20, 1986, its predecessor Nolex Development Inc acquired Burdett Publications Inc in an exchange of 17 mln common shares for all Burdett Publications shares, but the transaction was not qualified with the California Department of Corporations. As a result, it said, the former Burdett Publications owners have a claim for damages against Dale Burdett as successor to Nolex for one yuear starting January 21, 1987, with the damages measured by the difference in values of shares exchanged plus interest from February 20, 1986.  
PUROLATOR <PCC> IN BUYOUT WITH HUTTON <EFH>. New Jersey-based overnight messenger Purolator Courier Corp said it has agreed to be acquired for about 265 mln dlrs by a company formed by E.F. Hutton LBO Inc and certain managers of Purolator's U.S. courier business. Analysts have said that Purolator has been for sale for some time. Purolator announced earlier it was mulling a takeover bid, but analysts wrongly predicted the offer was from another courier company. Hutton LBO, a wholly owned subsidiary of E.F. Hutton Group Inc, will be majority owner of the company. Hutton said the acquiring company, PC Acquisition Inc, is paying 35 dlrs cash per share for 83 pct of Purolator's stock in a tender offer to begin Thursday. The rest of the shares will be purchased for securities and warrants to buy stock in a subsidiary of PC Acquisition, containing Purolator's U.S. courier operations. If all the shares of Purolator are tendered, shareholders would receive for each share 29 dlrs cash, six dlrs in debentures, and a warrant to buy shares in a subsidiary of PC Acquisition containing the U.S. courier operations. Hutton said in the merger shareholders would get 46 mln dlrs aggregate amount of guaranteed debentures due 2002 of PC Acquisition and warrants to buy 15 pct of the common stock of the PC courier subsidiary. Hutton said the company has valued the warrants at two to three dlrs per share. Purolator's stock price closed at 35.125 dlrs on Friday. While some analysts estimated the company was worth in the mid 30s, at least one said it would be worth 38 to 42 dlrs. This follows sales of two other Purolator units. It agreed recently to sell its Canadian Courier unit to Onex Capital for 170 mln dlrs, and previously sold its auto filters business. Purolator retains its Stant division, which makes closure caps for radiators and gas tanks. A Hutton spokesman said the firm is reviewing its options on Stant. Purolator's courier business has been lagging that of its U.S. rivals because of the high price it paid in the past several years to add air delivery to its ground fleet. E.F. Hutton will provide 279 mln dlrs of its funds to complete the transaction. This so-called "bridge" financing will be replaced later with long-term debt most likely in the form of bank loans, Hutton said. Hutton LBO is committed to keeping the courier business, its president Warren Idsal said. "Purolator lost 120 mln dlrs over the last two years largely due to U.S. courier operations, which we believe the management is turning around. We belive it will be a very serious competitor in the future," said Idsal. William Taggart, chief executive officer of U.S. Courier division, will be chief executive officer of the new company. The tender offer will be conditioned on a minimum of two thirds of the common stock being tendered and not withdrawn to the expiration of the offer as well as certain other conditions. The offer will begin Thursday, subject to clearances from the staff of the Interstate Commerce Commission and will expire 20 business days after commencement unless extended.  
FINANCIAL SANTA BARBARA <FSB> TO MAKE PURCHASE. Financial Corp of Santa Barbara said it has signed a definitive agreement to purchase Stanwell Financial, the lending operations unit of mortgage banking company <Stanwell Mortgage>, for undisclosed terms.  
MARRIOTT <MHS> TO SELL HOTEL. <Four Seasons Hotels> said it and <VMS Realty Partners> of Chicago have agreed to purchase the Santa Barbara Biltmore Hotel from Marriott Corp for an undisclosed amount. It said the venture will rename the hotel the Four Seasons Biltmore at Santa Barbara and invest over 13 mln dlrs in improvements on the 228-room property.  
VIACOM SAID IT HAS NEW NATIONAL AMUSEMENTS, MCV HOLDINGS BIDS.  VIACOM SAID IT HAS NEW NATIONAL AMUSEMENTS, MCV HOLDINGS BIDS  
LAROCHE STARTS BID FOR NECO <NPT> SHARES. Investor David F. La Roche of North Kingstown, R.I., said he is offering to purchase 170,000 common shares of NECO Enterprises Inc at 26 dlrs each. He said the successful completion of the offer, plus shares he already owns, would give him 50.5 pct of NECO's 962,016 common shares. La Roche said he may buy more, and possible all NECO shares. He said the offer and withdrawal rights will expire at 1630 EST/2130 gmt, March 30, 1987.  
SENIOR ENGINEERING MAKES 12.5 MLN DLR US PURCHASE. <Senior Engineering Group Plc> said it reached agreement with <Cronus Industries Inc> to acquire the whole share capital of <South Western Engineering Co> for 12.5 mln dlrs cash. This sum is being financed by a term loan. South Western is one of the U.S.'s leading manufacturers of heat transfer equipment, with a turnover of 54.86 mln dlrs and pre-tax profits of 1.72 mln in 1986. Completion of the deal is conditional on approval under U.S. Hart-Scott-Rodino regulations which is expected within 30 days. Some 350,000 dlrs is payable immediately, 12 mln dlrs payable on completion with the balance due by June 30, 1987.  
VIACOM <VIA> RECEIVES TWO REVISED OFFERS. Viacom International Inc said it received revised merger offers from <National Amusements Inc> and <MCV Holdings Inc>. The company said the special committee plans to meet later today to review both offers. Viacom said National Amusements' Arsenal Holdings Inc raised the value of its offer for the Viacom shares not held by National Amusements in three areas. National Amusements holds 19.6 pct of Viacom's stock. The cash value of the offer was raised to 42.00 dlrs from the 40.50 dlrs a Viacom share offered February 23 while the value of the fraction of a share of exchangeable preferred being offered was increased to 7.50 dlrs a share from six dlrs. The interest rate to be used to increase the cash value of the merger, if delayed beyond April 30, was raised to nine pct from eight pct and 12 pct after May 31. A Viacom spokesman said the Arsenal Holdings's offer continues to include a 20 pct interest in Arsenal for present Viacom shareholders. Viacom said MCV Holdings, a group which includes the company's senior management and the Equitable Life Assurance Society of the United States, raised the value of its offer by increasing the value of the preferred being offered to 8.50 dlrs from 8.00 dlrs a share and raising the ownership in the new company to be held by present Viacom shareholders to 45 pct from 25 pct. MCV called its previous offer, made February 26, the "final" proposed revision of its agreement with Viacom.  
PITTSTON AGREES TO ACQUIRE WTC INTERNATIONAL IN EXCHANGE OF STOCK.  PITTSTON AGREES TO ACQUIRE WTC INTERNATIONAL IN EXCHANGE OF STOCK  
DIAGNOSTIC/RETRIEVAL SYSTEMS INC MAKES 53 MLN DLR BID FOR ROSPATCH CORP.  DIAGNOSTIC/RETRIEVAL SYSTEMS INC MAKES 53 MLN DLR BID FOR ROSPATCH CORP  
MILLER TABAK HAS 91.8 PCT OF PENN TRAFFIC <PNF>. <Miller Tabak Hirsch and Co> said it has received an accepted 3,424,729 common shares of Penn Traffic Co in response to its 31.60 dlr per share tender offer that expired Friday, and together with the 380,728 shares it already owned, it now has about 91.8 pct of Penn Traffic. The company said Penn Traffic is expected to hold a special shareholders' meeting later this month to approve a merger into Miller Tabak at the tender price. It said two Miller Tabak representatives will be named to the Penn Traffic board on March Four to serve as the only directors with Penn Traffic president and chief executive officer Guido Malacarne. The company said it received financing for the transaction from First National Bank of Minneapolis and Salomon Inc <SB>.  
PITTSTON <PCO> AGREES TO ACQUIRE WTC <WAF>. Pittston Co said it has tentatively agreed to acquire WTC International N.V. in a tax-free exchange of stock. Pittston said it agreed to exchange 0.523 common share for each of the about 8,612,000 WTC common shares outstanding. Pittston said WTC's three principal shareholders, who own 62 pct of its stock, are parties to this agreement. They have granted Pittston the right of first refusal to their shares. WTC has granted Pittston an option to buy WTC shares equal to 18.5 poct of its outstanding stock. The agreement is subject to approval of both boards and WTC shareholders. Pittston said described WTC as a fast growing air freight forwarding company with operations throughout the world. Its revenues totaled nearly 200 mln dlrs in the year ended November 30 and for the quarter ended on that date it earned 1.3 mln dlrs on revenues of 55.8 mln dlrs. Pittston said its Burlington Air Express subsidiary generates about two-thirds of its 450 mln dlrs in annual revenes with its domestic air freight services.  
CONSOLIDATED TVX SAYS IT WILL ISSUE SHARES TO BUY STAKES IN THREE BRAZIL MINING FIRMS.  CONSOLIDATED TVX SAYS IT WILL ISSUE SHARES TO BUY STAKES IN THREE BRAZIL MINING FIRMS  
DIAGNOSTIC <DRS> MAKES A BID FOR ROSPATCH <RPCH>. Diagnostic Retrieval Systems Inc said it has made an offer to acquire, through a wholly owned unit, all outstanding shares of Rospatch Corp's common stock for 22 dlrs a share cash, or about 53 mln dlrs. DRS, a warfare systems producer, said it would make the transaction through a cash tender offer for all, but not less than 51 pct, of Rospatch's outstanding common stock followed by a merger with Rospatch, a labels, high technology and wood producer, at the same purchase price per share. DRS said the deal is subject to approval by the Rospatch board, and the tender offer expires on March 6, 1986.  
THE JAPAN FUND <JPN> GETS BUYOUT OFFER. The Japan Fund Inc said it has received an unsolicited offer from <Sterling Grace Capital Management LP>, acting together with certain other persons and entities, to purchase all the assets of the fund at five pct below its aggregate net asset value. The Japan Find said tne deal is subject to obtaining satisfactory financing and a due diligence review. It added that the proposal has been referred to its Board of Directors for consideration.  
CORNING TO OFFER 0.5165 SHARE FOR EACH HAZLETON SHARE UNDER EARLIER AGREEMENT.  CORNING TO OFFER 0.5165 SHARE FOR EACH HAZLETON SHARE UNDER EARLIER AGREEMENT  
BANK OF NEW YORK <BK> TO HAVE GAIN ON UNIT SALE. Bank of New York Co said it and the management of RMJ Securities Corp have agreed to sell 80 pct of their interests in RMJ Holding Corp to <British and Commonwealth Holdings PLC> and Bank of New York expects to realize a substantial gain on the transaction. RMJ Holding is the holding company for RMJ Securities, a large broker of U.S. government securities and agency obligations  Bank of New York owns a majority interest in RMJ Holding and management of RMJ Securities the remainder. Bank of New York said the sale is expected to be completed during the second quarter. It said it and RMJ Securities management will continue to own 20 pct of RMJ Holding for now, but the agreement provides for the sale of that remaining interest to British and Commonwealth over the next six years.  
CORNING <GLW>, HAZLETON <HLC> SET EXCAHNGE RATIO. Corning Glass Works said the exchange ratio for its previously announced acquisition of Hazleton Laboratories Corp has been established at 0.5165 Corning common share for each Hazleton common share. Corning said the prospectus regarding the merger is expected to be mailed tomorrow to all Hazleton holders of record February 18. Hazleton shareholders will vote on the proposed merger at a special meeting on March 31.  
BALLY <BLY> COMPLETES PURCHASE OF GOLDEN NUGGET. Bally Manufacturing Corp said it completed the acquisition of the Golden Nugget Casino Hotel in Atlantic City, New Jersey from Golden Nugget Inc. Bally also acquired from Golden Nugget various parcels of real estate in Atlantic City, it noted. The transaction included 140 mln dlrs in cash and stock and the assumption of a 299 mln dlrs mortgage.  
AMERICAN NURSERY <ANSY> BUYS FLORIDA NURSERY. American Nursery Products Inc said it purchased Miami-based Heinl's Nursery Inc, for undisclosed terms. Heinl's Nursery has sales of about 4.5 mln dlrs and owns 100 acres, of which 75 are in shade houses and about 58,300 square feet cover greenhouses, shipping and office facilities.  
ESSELTE BUSINESS <ESB> UNIT BUYS ANTONSON UNIT. Esselte Business Systems Inc's Esselte Meto division said it has acquired the Antonson America Co, a subsidiary of <Antonson Machines AB>, of Sweden. Esselte said the Antonson unit, based in LaPorte, Indiana, manufactures scales and label printers. The company said the purchase is part of a plan to increase the range of retail electronic scales being offered by Esselte in the U.S. It said the acquisition will enble Esselte to increase its distribution base in its effort to grow in the U.S.  
FOUR SEASONS BUYING MARRIOTT <MHS> HOTEL. <Four Seasons Hotels Inc> and VMS Realty Partners said they agreed to acquire the Santa Barbara Biltmore Hotel in California from Marriott Corp, for undisclosed terms. Closing was expected by March 31, they added. The companies said they would jointly own the hotel and rename it the Four Seasons Biltmore at Santa Barbara. They said they would spend more than 13 mln U.S. dlrs "to enhance the Biltmore's position as one of the finest resort hotels in North America." Chicago-based VMS Realty is a real estate and development firm.  
REDSTONE DETAILS SWEETENED VIACOM <VIA> OFFER. Investor Sumner Redstone, who leads one of the two groups vying for control of Viacom International Inc, offered to sweeten his bid for the company by 1.50 dlrs a share cash and 1.50 dlrs in securities. In a filing with the Securities and Exchange Commission, Redstone, who controls Dedham, Mass.,-based National Amusements Inc, a theater chain operator, offered to raise the cash portion of its Viacom offer to 42 dlrs a share from 40.50 dlrs. Redstone also raised the face value of the preferred stock he is offering to 7.50 dlrs from six dlrs. The Redstone offer, which is being made through Arsenal Holdings Inc, a National Amusements subsidiary set up for that purpose, which also give Viacom shareholders one-fifth of a share of Arsenal common stock after the takeover. Viacom said earlier today it received revised takeover bids from Redstone and MCV Holdings Inc, a group led by Viacom management which is competing with Redstone for control of the company and already has a formal merger agreement with Viacom. The company did not disclose the details of the revised offers, but said a special committee of its board would review them later today. The Redstone group, which has a 19.5 pct stake in Viacom, and the management group, which has a 5.4 pct stake, have both agreed not to buy more shares of the company until a merger is completed, unless the purchases are part of a tender offer for at least half of the outstanding stock. The two rivals also signed confidentiality agreements, which give them access to Viacom's financial records provided they keep the information secret. In his SEC filing, Redstone, who estimated his cost of completing the takeover at 2.95 billion dlrs, said Bank of America is confident it can raise 2.275 billion dlrs. Besides the financing it would raise through a bank syndicate, Bank of America has also agreed to provide a separate 25 mln dlr for the limited purpose of partial financing and has committed to provide another 592 mln dlrs, Redstone said. Merrill Lynch, Pierce Fenner and Smith Inc has increased its underwriting commitment to 175 mln dlrs of subordinated financing debt for the Viacom takeover, from the 150 mln dlrs it agreed to underwrite earlier, Redstone said. Redstone said his group would contribute more than 475 mln dlrs in equity toward the takeover. The Redstone equity contribution to the takeover would consist of all of his group's 6,881,800 Viacom common shares and at least 118 mln dlrs cash, he said. The new offer, the second sweetened deal Redstone has proposed in his month-long bidding war with management, also contains newly drawn up proposed merger documents, he said. Last week, the management group submitted what it called its last offer for the company, valued at 3.1 mln dlrs and consisting of 38.50 dlrs a share cash, preferred stock valued at eight dlrs a share and equity in the new company. Redstone's previous offer had been valued at 3.2 billion dlrs.  
MONTEDISON CONCLUDES TALKS WITH ANTIBIOTICOS. Montedison Spa <MONI.MI> said it has concluded its negotiations with Spanish pharmaceuticals company <Antibioticos SA>. A company spokesman told Reuters "We have concluded the talks and we are now awaiting authorization from Spanish authorities." He declined to comment further. Earlier today the Italian company postponed a scheduled press conference on its talks with Antibioticos. An Italian press report today said Montedison has agreed to acquire Antibioticos for 500 billion lire.  
UTILICORP <UCU> COMPLETES ACQUISITION. UtiliCorp United Inc said it completed the acquisition of West Virginia Power from Dominion Resources for about 21 mln dlrs. The sale was approved by the West Virginia Public Service Commission in January and became effective March one. West Virginia's management will continue to be responsible for operating the utility, it said.  
CARBIDE <UK> LOOKS TO ACQUISITIONS FOR GROWTH. Union Carbide Corp is looking to acquisitions and joint ventures to aid its chemicals and plastics growth, according the H.W. Lichtenberger, president of Chemicals and Plastics. Describing this as a major departure in the company's approach to commercial development, he told the annual new business forum of the Commercial Development Association "We are looking to acquisitions and joint ventures when they look like the fastest and most promising routes to the growth markets we've identified." Not very long ago Union Carbide had the attitude "that if we couldn't do it ourselves, it wasn't worth doing. Or, if it was worth doing, we had to go it alone," Lichtenberger explained. He said "there are times when exploiting a profitable market is done best with a partner. Nor do we see any need to plow resources into a technology we may not have if we can link up profitably with someone who is already there." He said Carbide has extended its catalyst business that way and is now extending its specialty chemicals business in the same way.  
CORRECTED - BANKAMERICA NEGOTIATING SALE OF UNITS. Bank of America NT and SA's <BAC.N> West German branch said it is negotiating the sale of Bankhaus Centrale Credit AG, a small local West German bank it acquired in 1965, and of its West German Visa credit card operation. Michael Seibel, Bank of America vice-president and regional manager, said the negotiations were proceeding well. He declined to give further details. Bank of America's West German branch lost some 32 mln marks in 1985. The result includes profit and loss transfers from Bankhaus Centrale Credit and the Visa organisation. The sale of the units is part of the bank's worldwide restructuring plan.  
KAPOK CORP <KPK> IN TECHNICAL DEFAULT. Kapok Corp said it is in techical default of its loans from Southeast Banking Corp <STB> and Murray Steinfeld but is negotiating with the lenders. It said neither has declared the loans due. The company said it has agreed to sell the Peter Pan Restaurant in Urbana, Md., for 1,100,000 dlrs, or one mln dlrs after the payment of expenses.  
INVESTOR GROUP HAS TALKS WITH PESCH ON AMI <AMI>. WEDGE Group Inc, a Houston investment firm with a 5.5 pct stake in American Medical International Inc, said it has had talks with Pesch and Co, which is seeking control of the company. In a filing with the Securities and Exchange Commission, WEDGE, which is owned by Issam Fares, a Lebanese citizen living in Switzerland, also said it discussed the possibility of joining with others in its own bid to seek control of AMI. WEDGE stressed that it has no current plans to seek control of AMI, but refused to rule out a takeover try in the future. WEDGE said it has had discussions with AMI management, Pesch, the closely held health care and investment concern controlled by Chicago physician LeRoy Pesch, and other AMI shareholders. It did not specify in its SEC filing which issues -- selling its AMI stake or joining with others in a takeover try -- were discussed with which group. But it said the talks did not produce any agreements or understandings. WEDGE said it believes that "some form of restructuring of AMI and its business would be highly desirable and appropriate at this time." WEDGE, which holds 4.8 mln shares of AMI common stock, said it plans to hold further talks with company management, Pesch and other shareholders. Pesch last week sweetened his bid for the company to 22 dlrs a share in cash and securties, or 1.91 billion dlrs based on AMI's total outstanding, from an all-cash 20 dlr a share bid, which the company rejected.  
BANNER <BNR> COMPLETES TENDER FOR REXNORD <REX>. Banner Industries Inc said 19.8 mln of the outstanding 20 mln shares in Rexnord Inc were tendered pursuant to its 26.25 dlr a share offer that closed at midnight EST Feb 27. Together with the five mln Rexnard shares it already owns, the company said it now holds a 97 pct stake in the company. It said the completion of the deal is subject to approval by Rexnard holders and to other closing conditions. It expects the deal to close in about 60 days.  
CORRECTED - BANKAMERICA NEGOTIATING UNITS SALE. Bank of America NT and SA's <BAC.N> West German branch said it is negotiating the sale of Bankhaus Centrale Credit AG, a small local West German bank it acquired in 1965, and of its West German Visa credit card operation. Michael Seibel, Bank of America vice-president and regional manager, said the negotiations were proceeding well. He declined to give further details. Bank of America's West German branch lost some 32 mln marks in 1985. The result includes profit and loss transfers from Bankhaus Centrale Credit and the Visa organisation. The sale of the units is part of the bank's worldwide restructuring plan. -- corrects year of loss in third paragraph in item which originally ran February 27.  
OSR <OSRC> TO MAKE ACQUISITION. OSR Corp said it has agreed to acquire the properties and assets of Telcom International Group for 10.5 mln common shares, which would give former Telcom owners an 84 pct interest in the combined company. Telcom is an international film and television distributor. The assets being acquired consist mostly of distribution rights to films valued at over one mln dlrs, the company said. OSR said as part of the acquisition agreement is is required to sell its 80 pct interest in Standard Knickerbocker Ltd, which makes jeans in Canada. OSR said it expects to net about 150,000 dlrs on the sale of Standard Knickerbocker. The company said both transactions are subject to approval by shareholders at a meeting to be held in April or May, it said.  
CRONUS INDUSTRIES INC <CRNS> SELLS UNIT. Cronus Industries Inc said it agreed to sell its heat transfer equipment business, Southwestern Engineering Co, for a slight premium over book value, plus a release of Cronus from liability on approximately three mln dlrs of subsidiary indebtedness. The company said the sale to a subsidiary of Senior Engineering Group PLC, a British company, will take place this month.  
<HOECHST AG> COMPLETES CELANESE <CZ> ACQUISITION. Hoechst AG of West Germany said it has completed the acquisition of Celanese Corp. Hoechst acquired a majority of Celanese shares in a recent tender offer at 245 dlrs per common share.  
AMERICUS TRUST <HPU> EXTENDS DEADLINE. Americus Trust for American Home Products Shares said it extended its deadline for accepting tendered shares until November 26, an extension of nine months. The trust, which will accept up to 7.5 mln shares of American Home Products <AHP>, said it has already received tenders for about four mln shares. The trust is managed by Alex. Brown and Sons Inc <ABSB> and was formed November 26, 1986.  
<PANTRY INC> INB TALKS ON BEING ACQUIRED. Privately-held Pantry Inc, which operates 477 convenience stores in five Southeastern states, said it has engaged Alex. Brown and Sons Inc <ABSB> to explore a possbile sale of the company. It said it expects to start talks with prospective acquirers shortly. The company said it has been approached by a number of parties in recent months.  
<RENOUF CORP> TO PROCEED WITH BENEQUITY <BH> BID. Renouf Corp of New Zealand said it has decided to proceed with its offer for all outstanding units of Benequity Holdings at 31 dlrs per unit. The company had been required to redice by March Two whether to proceed with the offer or terminate it, based on its ability to obtain financing and on its review of Benequity operations.  The offer is to expire March 13.  
CONVERGENT TECHNOLOGIES <CVGT> TO BUY OAKLEAF. Convergent Technologies Inc said it has reached an agreement in principle to buy Oakleaf Corp, which supplies finance, insurance and leasing computers to auto dealers. The transaction will involve an exchange of Oakleaf stock for cash and debt and is subject to a definitive agreement, the companys said. No other terms were disclosed. Oakleaf had 1986 sales of about 26 mln dlrs.  
ROSPATCH <RPCH> TO RESPOND TO DIAGNOSTIC <DRS>. Rospatch Corp said it will have a news release later in response to today's acquisition bid by Diagnostic Retrieval Systems Inc for 22 dlrs a share. Rospatch earlier requested its stock be halted in over the counter trading, last trade 24-1/8. Diagnostic said its bid was for a total 53 mln dlrs through a cash tender offer for all, but not less than 51 pct of Rosptach outstanding common. For its fourth-quarter ended December 31, 1986, Rospatch reported net loss 2,649,000 or 1.10 dlrs a share compared a loss of 627,500 or 35 cts profit for the 1985 period. In December the Brookehill Group in New York said it had 9.7 pct stake. J.A. Parini, Rospatch chief executive, responded on January eight by saying the investment was a vote in confidence in the company.  
ROSPATCH CORP REJECTS OFFER FROM DIAGNOSTIC RETRIEVAL SYSTEMS INC.  ROSPATCH CORP REJECTS OFFER FROM DIAGNOSTIC RETRIEVAL SYSTEMS INC  
NORTH AMERICAN GROUP <NAMG> BUYS GEORGIA FIRM. North American Group Ltd's North American Acquisition Corp said it has a definitive agreement to buy 100 pct of Pioneer Business Group Inc of Atlanta. Terms of the acquisition were not disclosed. Closing of the acquisition is scheduled for April. North American Acquisition said the agreement is subject to due diligence and a satisfactory review of Pioneer's operation. Pioneer makes business forms.  
TALKING POINT/VIACOM INTERNATIONAL <VIA>. A bidding war for Viacom International Inc, one of the largest U.S. entertainment companies, pitted a management group and other investors against National Amusements Inc, a closely held theater operator. Both sides raised their bids over the weekend. A source close to the management side insisted that timing was on his side. He said if outside directors approve the management proposal, a merger plan could be put to a vote of shareholders with proxy material going out late this week. "It would take 20 days from the day we mail," said the source. The source predicted National Amusements, controlled by investor Sumner Redstone, would need "half a year" to complete a tender offer because of the regulatory approvals that must accompany any change in control of Viacom's broadcast licenses and cable television franchises. Redstone was not available for comment. Some of Wall Street's arbitrage players said it was a rare situation that could only be enjoyed - a true bidding war. One said Redstone could begin a tender offer whenever he wanted and if enough people were convinced his proposal was superior to the Viacom management plan, he would have a chance to win. The independent directors of Viacom were called into a meeting today. Word on a decision was expected early tomorrow. Viacom shares climbed 2-1/2 to 50-3/8 by midafternoon. One major Wall Street firm issued a sell recommendation. "We think we're at the end now, in terms of bidding," said the firm's arbitrageur, who spoke on condition he not be identified. Both Redstone's proposal and the management proposal would create a restructured company heavily leveraged with debt. The management plan would result in a balance sheet with about 2.5 billion dlrs in debt and nearly 500 mln dlrs in preferred stock, convertible into 45 pct of the common stock. Redstone's newest proposal offers holders 42 dlrs in cash, a fraction of a share of exchangeable preferred stock with a value of 7.50 dlrs, and one-fifth of a share of common stock stock of Arsenal Holdings, representing 20 pct of the equity interest in the restructured Viacom. One arbitrageur calculated the equity in the Redstone plan was worth 2.50 dlrs making the total package worth 52 dlrs per share. Management offered 38.50 dlrs in cash, exchangeable preferred stock worth 8.50 dlrs and a fractional share of convertible preferred. The arbitrageur said the equity portion was worth about 4.00 dlrs for a total of 51 dlrs. Redstone's newest plan raised the amount of interest he would pay on the cash portion of his offer for every day beyond April 30 that a merger with Arsenal is not consummated. The plan calls for intest to be paid at an annual rate of nine pct during May and 12 pct thereafter. Previously Redstone offered eight pct interest. Other arbitrageurs said both Redstone and the management group, led by president and chief executive Terrence Elkes, were offering high prices. "Redstone really wants to own the company," one said. Another said management seemed to have the edge on the timing issue. Redstone's company owns 19.6 pct ov Viacom's 35 mln shares. A Wall Street analyst said it was hard to determine what the equity in the newly leveraged company would be worth. He noted as an example that new stock in FMC Corp <FMC>, which adopted a highly leveraged structure last year, inititally traded at 12.50 dlrs per share, dipped to nine dlrs, and is now just over 30 dlrs. Last week, Viacom reported fourth quarter earnings fell two two cts per share from 23 cts. The company said interest costs from several acquisitions affected results. Shares of Warner Communications Inc <WCI> rose 7/8 to 31-1/8. Analysts noted Warner owns warrants to purchase 3.25 mln Viacom shares at 35 dlrs and another 1.25 mln shares at 37.50 dlrs. Chris Craft Industries <CCN>, which owns a stake in Warner, rose 1-1/4 to 22-3/4. Viacom was created in 1970 and spun off from CBS Inc <CBS>. The company has 940,000 cable television subscribers, operates nine satellite television services and owns television and radio stations. It is one of the largest distributors of films and other programs for television.  
WAVEHILL INTERNATIONAL TO MAKE ACQUISITION. <Wavehill International Ventures Inc> said it has agreed to acquire Personal Computer Rental Corp of Coral Gables, Fla., in a transaction in which shareholders of Personal Computer will receive shares respresenting about a 25 pct interest in the combined company. The company said it will have about two mln shares outstanding on a fully-diluted basis after the transaction. It said after the acquisition it will infuse Perconal computer with cash for expansion.  It said Personal Computer now has 26 franchised locations and plans to add over 30 in 1987, seeking eventually to expand into 420 markets in the U.S. and abroad.  
SECURITY PACIFIC <SPC> COMPLETES MERGER. Security Pacific Corp said it completed its planned merger with Diablo Bank following the approval of the comptroller of the currency. Security Pacific announced its intention to merge with Diablo Bank, headquartered in Danville, Calif., in September 1986 as part of its plan to expand its retail network in Northern California. Diablo has a bank offices in Danville, San Ramon and Alamo, Calif., Security Pacific also said.  
ALBERTSON'S <ABS> ADOPTS STOCKHOLDER RIGHTS PLAN. Albertson's Inc said its board has adopted a stockholder rights plan intended to protect them in the event of any proposed takeover of the company. Under the plan, stockholders will receive a dividend distribution of one right for each share of common stock held on March 23. The rights are exercisable ten days after a person or group acquires 20 pct or more of Alberston's common stock or announces a tender offer for 30 pct or more of the stock. Each right will entitle the shareholder to buy one newly issued share of Alberston's common stock for 150.00 dlrs.  
ROSPATCH <RPCH> REJECTS DIAGNOSTIC <DRS> BID. Rospatch Corp said it rejected a proposal by Diagnostic Retrieval Systems Inc to acquire its stock at 22 dlrs a share. Rospatch's board believes that the long term interests of its shareholders will be best served by continuing as an independent public company at this time, the company said in response to an unsolicited offer from Diagnostic Retrieval. Rospatch said Diagnostic's offer of February 27 is a variation of a previous offer in January, the nature of which was not disclosed. Rospatch said it advised Diagnostic Retrieval that "it would be contrary to the best interests of the corporation to engage in any discussions concerning a business combination with Diagnostic Retrieval."  
INT'L MINERALS <IGL> BUYS ANIMAL PRODUCTS UNIT. International Minerals and Chemical Corp said it completed its acquisition of Johnson and Johnson Co's Pitman-Moore unit, a producer of animal health products. Terms of the acquisition were not disclosed. International Minerals and Chemical said annual sales of the unit are about 45 mln dlrs. Pitman-Moore makes health products for pets and for farm and feedstock animals.  
JWT <JWT> NOT APPROACHED BY GROUP SEEKING SHARES. JWT Group Inc has not been approached by former Ted Bates Worldwide Chairman Robert Jacoby about the possibility of a syndicate buying a 35 pct stake in JWT Group on a friendly basis, a company spokesman said. He said JWT would have no comment on an Advertising Age report that Jacoby is considering heading up a venture capital syndicate to purchase a 35 pct stake in JWT group. Jacoby was not immediately available for comment on the report. Ted Bates is now owned by <Saatchi and Saatchi>, the world's largest advertising agency.  
FOOTE MINERAL <FTE> SELLS CAMBRIDGE PLANT. Foote Mineral Co said it signed a letter of intent with Shieldalloy Corp, a wholly-owned subsidiary of <Metallurg Inc>, for the sale of its Cambridge, Ohio, business. The company said the sale, which will be explained in greater detail after the definitive agreement has been signed, is part of Foote's previously-announced plan to sell the entire company.  
UTILICORP <UCU> ACQUIRES DOMINION <D> SUBSIDIARY. UtiliCorp United Inc said it has closed the previously announced acquisition of West Virginia Power from Dominion Resources Inc for about 21 mln dlrs.  
PESCH SEES SHAREHOLDER SUPPORT IN AMI <AMI> BID. Chicago physician LeRoy Pesch said he has had discussions with several American Medical International Inc shareholders and sees support for a restructuring of the company. Pesch said he has discussed his sweetened, 1.91 billion dlr takeover bid for American Medical with several large shareholders, including the biggest investor, the Bass family of Texas. However, the Bass family has not indicated support one way or the other for his offer, he said. Pesch, in an interview with Reuters, said based on the conversations he held with shareholders, he could not guage whether he had majority support. He said, however, there is support for his offer. Pesch would not identify shareholders with whom he held discussions other than the Bass family and the Wedge Group Inc, the only other holder of more than five pct of American Medical stock. Earlier today, Wedge Group, which has a 5.5 pct stake, said it held discussions with Pesch, American Medical management and other American Medical shareholders. Wedge, in a filing with the Securities and Exchange Commission, said it believes a restructuring of American Medical and its business would be "highly desirable and appropriate at this time." "That's the sort of position that I find a large segment of shareholders of AMI really share," said Pesch. Pesch said he held discussions with Wedge about joining his takeover effort, in which he is offering 17 dlrs cash, four dlrs in preferred stock and one dlr in common stock for each American Medical share. Wedge said it has no plans to join in an effort to seek control of American Medical, but it would not rule out a future takeover try. Pesch said he did not discuss a joint takeover proposal with the Bass family. Some analysts saw the Wedge statement as a boost to Pesch's takeover effort and a further sign that there could be some shareholder dissatisfaction following American Medical's previous rejection of a 20 dlr per share all cash offer from Pesch. American Medical is expected to resist Pesch's latest bid. Larry Feinberg, an analyst with Dean Witter Reynolds Inc said a management-led leveraged buyout cannot be ruled out. An American Medical spokesman said the company will comment on the new Pesch offer by March 10. Analysts continue to view the Bass family as a factor in the outcome of the bid for control of American Medical. The Bass family holds an 11. 6 pct stake in American Medical, and the company has previously said the investors support management's internal plan to improve the company's performance. The Bass family would not comment on American Medical or Pesch. Pesch, who led the leveraged buyout of Republic Health Corp last year, continues to face a credibilty problem on Wall Street because of the long time it took to finish the Republic acquisition. Republic also has substantial debt, and has left wall street questioning whether financing can be completed for the much larger American Medical takeover proposal. Pesch's first offer for American Medical was made without an investment banking firm, another cause for concern to Wall Street. However, Pesch entered his second offer with representation from Donaldson, Lufkin, and Jenrette Securities and Security Pacific Merchant Banking Group. "I don't have any doubt that the current transaction can be worked out and completed, provided we get to the point where Ami management will sit down and talk in a friendly environment," Pesch said. Pesch would not elaborate on what type of financing arrangements are being made. He did say if he succeeds in acquiring American Medical he plans to keep much of American Medical management in place. He said he plans to combine the company with Republic to form an efficient network of hospitals. Analysts said they do not believe a much higher offer could be made for American Medical. Byron Nimocks of E.F. Hutton Group said improved second fiscal quarter earnings could make American Medical stock worth about 20 dlrs per share. Nimocks estimates American Medical earnings for the second quarter ended February 28 could be 35 cts, compared to a 95 ct loss last year. Nimocks said Pesch's revised offer is not worth much more than the 20 dlrs cash offered previously. But Feinberg said there is a better chance a transaction could be completed because of the revised structure of the offer. "I think it's much more doable," he said. Analysts have said American Medical has begun a turnaround by replacing some members of management and reducing costs.  
U.S. APPROVES BUYOUT OF COASTAL BANCORP <CSBK>. Coastal Bancorp said the U.S. Federal Reserve Board approved the acquisition of Coastal by Suffield Financial Corp <SSBK>. The acquisition still requires approval from the Banking Department in Maine, the company noted.  
AMCA <AIL> TO SELL SOME DOMINION BRIDGE ASSETS. AMCA International Ltd said it finalized agreement to sell certain assets and inventories of its Dominion Bridge steel service center operations to <Federal Industries Ltd>'s Russelsteel Inc unit. Terms were undisclosed. It said the sale involved assets and operations of the general line of steel service centers in Toronto and Edmonton, Alberta and steel from inventories of closed AMCA branches. The company said the sale was part of a previously announced restructuring program to allow it to focus on certain core businesses and generate cash to cut debt.  
SCOTT'S HOSPITALITY ACQUIRES CAPITAL FOOD. <Scott's Hospitality Inc> said it acquired Capital Food Services Ltd, Ottawa's largest catering and food service company, for undisclosed terms. Scott's said it would operate Capital Food as a separate unit under Capital's current name and management.  
UNION NATIONAL <UNBC> SIGNS DEFINITIVE PACT. Union National Corp said it signed a definitive agreement under which its First National Bank and Trust Co of Washington unit will merge with <Second National Bank of Masontown>. Under a previously announced merger agreement, each share of Second National's common stock will be converted into 25 shares of Union National common.  
ANALYSTS SEE NO OTHER BIDDER FOR PUROLATOR<PCC>. Several analysts said they do not believe another suitor will top the 265 mln dlr bid for Purolator Courier Corp by E.F. Hutton LBO Inc and a management group from Purolator's courier division. There had been speculation another offer might be forthcoming, but analysts mostly believe the 35 dlrs per share price being paid by Hutton and the managers' PC Acquisition Inc is fully valued. Analysts and some Wall Street sources said they doubted another bidder would emerge since Purolator had been for sale for sometime before a deal was struck with Hutton Friday. Purolator's stock slipped 3/8 today to close at 34-3/4. It had been trading slightly higher than the 35 dlr offer on Friday. At least one analyst Friday speculated the company might fetch 38 to 42 dlrs per share. analysts and wall street sources doubted a competitive offer would emerge since the company has been for sale for sometime before the deal with Hutton was struck Friday. Hutton had been in talks with Purolator's adviser, Dillon, Read and Co since late December, a Hutton spokesman said. Hutton is offering 35 dlrs cash per share for 83 pct of the shares. If all shares are tendered, shareholders would receive 29 dlrs cash, six dlrs in debentures, and warrants for stock in a subsidiary of PC Acquisition containing the Purolator U.S. courier operation. Hutton values the warrants at two to three dlrs per share. Wall Street sources also said today that a rival bidder might be discouraged by a breakup fee Purolator would have to pay if it ends its agreement with Hutton. The sources would not reveal the amount of the fee, which will be noted in documents on the transaction to be made public later this week.  
FERRO CORP <FOE> SETS JOINT VENTURE. Ferro Corp said it has formed a joint venture with Paris-based Alsthom Inudstrial Group to export U.S. epxertise in specialty composite materials to the European market. Ferro said although the airframe and aerospace industries are the prime users of composite materials today, it plans to develop applications for the ground transportation and industrial markets in the near future. Ferro also announced it has agreed to purchase CompositAir, a developer of composit materials applications, for an undisclosed sum.  
CCL UNIT ACQUIRES NESTLE CANADA CAN OPERATIONS. <CCL Industries Inc>'s Continental Can Canada Inc unit said it acquired the Wallaceburg, Ontario, metal can making operations of Nestle Enterprises Ltd, wholly owned by <Nestle SA>, of Switzerland. Terms were undisclosed. Continental Can said it would supply Nestle's equivalent can requirements under a long-term agreement. Nestle said it decided to stop manufacturing cans "in order to be in a better position to take full advantage of the changes underway or on the horizon in food packaging technology."  
ARMTEK <ARM> TO SELL INDUSTRIAL TIRE UNIT. Armtek Corp, previously the Armstrong Rubber Co, said it agreed to sell its industrial tire and assembly division to a Dyneer Corp <DYR> for an undisclosed sum. It said the agreement covers the division's tire production facility in Clinton, Tenn., and its plants serving original equipment and replacement markets. Armstrong Tire Co, an Armtek unit, will continue to sell replacement industrial tires, the company said. Final closing is expected in the third fiscal quarter ending June 30.  
LEUCADIA <LUK> HAS 7.2 PCT OF MINSTAR <MNST>. Leucadia National Corp said two of its subsidiaries have acquired a 7.2 pct stake in Minstar Inc, a corporation controlled by corporate raider Irwin Jacobs and used by him in his forays to acquire stock in companies. In a filing with the Securities and Exchange Commission, Leucadia said its LNC Investments Inc, a Newark, Del., investment firm, and Charter National Life Insurance Co, a St. Louis joint stock life insurance company, bought their combined 1,261,000 Minstar common shares for investment purposes only. The Leucadia subsidiaries had held an 11.0 pct stake in Minstar, but cut to 1.8 pct, or 313,200 shares, last July. Since July, Leucadia said its companies have bought 947,800 Minstar common shares for a total of 24.7 mln dlrs. Leucadia said it bought the Minstar stake to obtain an equity position in the company and has no intention of seeking control of it. Nearly half of Leucadia's common stock is owned by TLC Associates, a Salt Lake City, Utah, general partnership, whose partners include the chairman and president of Leucadia and other investors.  
MICROBIO <MRC> PLANS ACQUISITION, FINANCING. Microbiological Research Corp said it entered into a letter of intent for a proposed business combination with privately owned <DataGene Scientific Laboratories Inc>, and <Milex Corp> a newly formed company, through a stock swap. It also said it received 100,000 dlrs from the sale of a convertible note to Ventana Growth Fund as part of an overall 1,100,000 equity financing plan with Ventana. Under that plan, a minimum of 400,000 dlrs and a maximum of one mln dlrs of additional new capital is to be provided to fund the combined operations of the three companies. Microbiological also said that if the maximum additional capital is raised, it will own about 49 pct of 4,550,00 shares of common outstanding in the new combined company, DataGene holders will own 29 pct, and Ventana and others will own 13 pct. It said the remaining nine pct will be held by Milex shareholder Norman Monson, who will become chief executive officer of the combined companies.  
PAINEWEBBER<PWJ> UNIT UPS SHAER SHOE <SHS> STAKE. Mitchell Hutchins Asset Management Inc, a New York investment firm and subsidiary of PaineWebber Group Inc, said it raised its voting stake in Shaer Shoe Corp to 76,000 shares, or 7.5 pct, from 52,100 shares, or 5.1 pct. In a filing with the Securities and Exchange Commission, Mitchell Hutchins said it bought 11,900 shares between Jan 8 and Feb 24 at prices ranging from 12.125 to 12.75 dlrs a share and obtained voting control over another 12,000 shares. The firm has said it bought the stake as an investment on behalf of its clients, but said it has had discussions with Shaer management. It did not disclose the topic of the talks.  
REXNORD <REX> TO REDEEM RIGHTS. Rexnord Inc said it will redeem all of its preferred stock purchase rights for 10 cts a right effective today. Rexnord said the rights will be redeemed because it is expected its shares will be tendered under a January 30 takeover offer from Banner Acquisition Corp. The rights trade in tandem with Rexnord's common stock.  
CANTREX UNIT TO MERGE WITH ONTARIO GROUP. (Groupe Cantrex Inc) said it plans to merge a new wholly-owned subsidiary a merger agreement with (CAP Appliance Purchasers Inc), of Woodstock, Ontario, a group of about 400 appliance and electronics retailers. It said CAP shareholders will receive 140,700 first preferred Groupe Cantrex shares entitling the holders to receive 6.05 dlrs per share or the equivilant in class A subordinate voting Cantrex shares. The merger is effective April one and is subject to shareholder approval.  
INVESTMENT FIRM BOOSTS LDBRINKMAN <DBC> STAKE. Two affiliated investment firms and the investment funds they control said they raised their combined stake in LDBrinkman Corp to 653,600 shares, or 10.9 pct of the total outstanding from 585,600 shares, or 9.7 pct. In a filing with the Securities and Exchange Commission, Fidelity International Ltd, a Bermuda-based firm, said its funds bought 68,000 LDBrinkman common shares between Jan 5 and Feb 19 at prices ranging from 5.30 to 5.445 dlrs a share. Funds controlled by FMR Corp, a Boston-based investment firm affiliated with Fidelity, hold 251,100 shares, bringing the combined total to 653,600 shares, Fidelity said.  
SEC PROBES 1986 TRE <TRE> TAKEOVER ATTEMPT. The federal Securities and Exchange Commission (SEC) is looking for possible securities laws violations in connection with an unsuccessful 1986 bid by Hollywood producer Burt Sugarman to take over TRE Corp, attorneys contacted by SEC investigators said. During the takeeover attempt, a unit of Sugarman's Giant Group Ltd at one point held a 9.9 pct stake in TRE. It had help in that effort from Jefferies Group Inc, a Los Angeles investment banking firm which sold it an option on a portion of the shares Sugarman eventually acquired. In addition, a company controlled by Sugarman raised 35 mln dlrs in a debt offering underwritten by Drexel Burnham Lambert Inc with help from Jefferies, and used a portion of the proceeds to buy TRE stock. Finally, Reliance Group Holdings Inc acquired nearly six pct of TRE, according to an SEEC filing. The attorneys, who asked not to be identified, said the SEC was investigating whether Sugarman and other firms with TRE holdings were working together without disclosing their cooperation, as would be required by the federal securities laws. One attorney said SEC probers also were examining whether Sugarman and Drexel had made adequate disclosures of its intended usage of the proceeds in the prospectus for the 35 mln dlr bond offering. A TRE spokesman confirmed that TRE, since December a unit of Aluminum Co of America, had been contacted by SEC investigators and was cooperating with the probe. The spokesman added that TRE Chairman Leopold Wyler had been interviewed by the SEC probers. A Jefferies spokesman said the SEC had asked for information a few months ago as part of an informal probe. The spokesman said Jefferies had cooperated with the agency and had heard nothing more since that time. "To the best of our knowledge, Jefferies is not the target of a formal SEC investigation" in connection with the TRE bid, he said. A Drexel spokesman acknowledged that his firm had underwritten the debt offering for Sugarman but added: "We had nothing to do with TRE." As a matter of policy, the SEC routinely declines to comment on its enforcement activities.  
TRANSAMERICA SELLS OCCIDENTAL LIFE AUSTRALIA. Equity investment company <Battery Group Ltd> said it had agreed to buy <Occidental Life Insurance Co of Australia Ltd> from TransAmerica Corp <TA> of the U.S. For 105 mln Australian dlrs. The acquisition has been made possible by the efforts of its major shareholder, <Pratt and Co Financial Services Pty Ltd>, Battery Group said in a statement. The purchase will be partly funded by the issue of eight mln shares at 4.50 dlrs each and four mln free options to the Pratt Group, controlled by entrepreneur Dick Pratt, plus four mln shares to professional investors at 4.50 each, it said. The balance will be funded by debt, Battery Group said. The acquisition is subject to the approval of its shareholders. On completion of the share placements, Pratt Group will effectively have 51 pct of Battery's enlarged capital, assuming exercise of all options, it said. Battery now has 22 mln shares on issue. Battery said Occidental Life is a major underwriter of individual term life insurance and a recent but fast-growing entrant in the individual account superannuation market. It has some 200 mln dlrs in funds under management.  
U.K. CLEARS CONS GOLD U.S. PURCHASE. The U.K. Trade Department said it would not refer Consolidated Goldfields Plc's <CGLD.L> purchase of <American Aggregates Corp> to the Monopolies Commission. Cons Gold said last month that its <ARC America Corp> unit had agreed to buy the Ohio-based company for 30.625 dlrs a share cash, or 242 mln dlrs, in a deal recommended by the Aggregates board.  
KLM TO TAKE 15 PCT STAKE IN AIR UK. KLM Royal Dutch Airlines <KLM.A> said it agreed to take a 15 pct stake in Air U.K. Ltd, a subsidiary of British and Commonwealth Shipping Plc <BCOM.L>, in a transaction worth around two mln stg. A KLM spokesman said KLM already cooperated closely with Air UK, which runs 111 flights a week to Amsterdam's Schipol airport from nine UK cities. British and Commonwealth Shipping said last week it held preliminary talks about a KLM minority stake in Air U.K. But gave no further details. KLM said it hoped the move would attract more British feeder traffic to Amsterdam Airport.  
ULTRAMAR SELLS U.K. MARKETING UNITS FOR 50 MLN STG. Ultramar Plc <UMAR.L> said it had reached agreement in principle to sell its wholly owned U.K. Marketing companies to Kuwait Petroleum Corp for around 50 mln stg. Ultramar's marketing units include <Ultramar Golden Eagle Ltd> which in 1985 made a profit of around 1.4 mln stg before financing and group administration charges. A small loss was recorded for the first nine months of 1986. The sale is due to take place on April 1 with the proceeds intended to reduce group debt in the short term. But Ultramar said the funds would ultimately be used for further development of its core businesses in the U.K. And North America.  
WOOLWORTH, UNDERWOODS FAIL TO AGREE ON BID. <Underwoods Plc> said it had not been possible to agree terms on a bid to be made by Woolworth Holdings Plc <WLUK.L> during talks. The two companies had been holding exploratory discussions. No spokesman for either company was immediately available to say why terms could not be agreed, nor whether the possibility of a bid was now being abandoned. Last week, Underwoods shares rose 49p to 237p ahead of any announcement of the talks. The announcement today brought them back down to 214p from last night's close at 241p. Woolworth was unchanged at 758p.  
HK HOTELS SOARS ON TAKEOVER SPECULATION. The price of Hongkong and Shanghai Hotels Ltd <SHLH.HK>'s stock soared on speculation of a takeover battle between major shareholders the Kadoorie family and the Evergo Industrial Enterprise Ltd <EVGH.HK> group, stock brokers said. They noted heavy buying in Hk Hotel shares after an announcement by Evergo's <China Entertainment and Land Investment Co Ltd> unit that it bought about 20 pct of Hk Hotels from the firm's deputy chairman David Liang for 1.06 billion dlrs. The stock rose 12 H.K. Dlrs to 62 dlrs today. Thomas Lau, Evergo's executive director, declined comment on whether the group is seeking a further stake in Hk Hotels. But he told Reuters the group will hold the 20 pct stake bought from Liang as long term investment. He said Evergo "was attracted by the underlying strength of Hk Hotels." Analysts said Evergo may be looking for a possible redevelopment of the Peninsula Hotel, one of Asia's best known hotels, and another site on Hong Kong island. Both are owned by Hk Hotels. <Lai Sun Garment Co ltd> yesterday said it acquired a 10 pct stake in Hk Hotels from Liang for 530 mln dlrs. Lau denied any link between China Entertainment and Lai Sun on their acquisitions of the Hk Hotels stake. "It is purely coincidence," he said. But analysts were not so certain, saying that the Evergo group, which has a reputation as a corporate raider, may team up with Lai Sun Garment for a takeover. Lau also denied any contact with the Kadoorie family, which analysts estimate has more than 20 pct of Hk Hotels. Michael Kadoorie is chairman of Hk Hotels. Lau said two representatives of Evergo will be nominated to the Hk Hotels board. A source close to the Kadoorie family said the family has not considered any countermoves so far. Analysts said it would be difficult for Evergo and the Kadoorie family to cooperate because of different management styles. "Evergo may want to split up the hotel management and property developments of Hk Hotels but that strategy may not fit the conservative Kadoorie family," said an analyst who asked not to be named. Another analyst noted the price of Hk Hotels had been distorted by the takeover talks because its net asset value is only worth about 50 dlrs a share. The offers by Evergo and Lai Sun were for 53 dlrs a share, though that is well below the current trading price. Trading was suspended today in shares of Lai Sun, Evergo, China Entertainment and the group's associate <Chinese Estates Ltd>. Chinese Estates lost 25 cents to 20.15 dlrs yesterday, China Entertainment five to 8.60 dlrs and Evergo one to 74 cents. Lai Sun gained 50 cents to 70.50 dlrs.  
BRYSON PAYS 5.4 MLN DLRS FOR CENERGY CORP STAKE. <Bryson Oil and Gas Plc> said it paid a cash consideration of around 5.4 mln dlrs for about 8.6 pct of <Cenergy Corp>, a U.S. Oil and gas exploration and production company. Bryson said its board has been considering a number of possible investments to expand the company's interests and believes the opportunity to acquire an investment in Cenergy provides a suitable extension to its existing U.S. Interests. Cenergy reported a net loss of 7.27 mln dlrs in the nine months to September 30, 1986 while total stockholders equity on the same date was 40.72 mln dlrs.  
GREENWOOD RESOURCES <GRRL> SELLS COMPANY STAKE. Greenwood Resources Inc said it has sold its 4,300,000 common share majority holding in <New London Oil Ltd> of London to an affiliate of <Guinness Peat Group PLC> of London and an affiliate of <Sidro SA> of Belgium for a total of 1,700,0000 dlrs in cash. The company said it will apply the proceeds of the sale to support its line of credit and as part of a proposed debt restructuring with Colorado National Bancshares <COLC> and Greenwood shareholders. It said it will retain a seat on the New London board.  
HEINZ INTERESTED IN BUYING GUINNESS BREWING. H.J. Heinz <HNZ.N> chairman Tony O'Reilly would be interested in buying Guinness PLC <GUIN.L>'s brewery division if it were for sale, a spokesman said. The spokesman, reacting to Irish and British press reports, said "He continues to be interested were the group to offer the brewery side of Guinness for sale. But he has not put together a consortium, nor has he been buying shares." He was quoted by the Irish magazine Business and Finance as saying he would be interested if it came on the market and that he had the support of two international banks if he decided such a purchase might be worthwhile. In the magazine article, he suggested that if brewing profits were calculated to be in the region of 80 mln punts, the asking price would not be higher than 800 mln punts. "A multiple of ten times earnings would be the top whack for the brewing division in the current Guinness situation," he said. "This would mean an expensive exercise, right on the edge, but not impossible," he added. The deal would mean buying the Dublin, London, Nigerian and Malaysian breweries because "It could only be sold as an integral unit if it was going to be sold at all," O'Reilly said.  
VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID.  VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID  
NATIONAL AMUSEMENTS AGAIN UPS VIACOM <VIA> BID. Viacom International Inc said <National Amusements Inc> has again raised the value of its offer for Viacom's publicly held stock. The company said the special committee of its board plans to meet later today to consider this offer and the one submitted March one by <MCV Holdings Inc>. A spokeswoman was unable to say if the committee met as planned yesterday. Viacom said National Amusements' Arsenal Holdings Inc subsidiary has raised the amount of cash it is offering for each Viacom share by 75 cts to 42.75 dlrs while the value of the fraction of a share of exchangeable Arsenal Holdings preferred to be included was raised 25 cts to 7.75 dlrs. National Amusements already owns 19.6 pct of Viacom's stock.  
SARA LEE <SLE> TO BUY 34 PCT OF DIM. Sara Lee Corp said it agreed to buy a 34 pct interest in Paris-based DIM S.A., a subsidiary of BIC S.A., at a cost of about 84 mln dlrs. DIM S.A., a hosiery manufacturer, had 1985 sales of about 260 mln dlrs. The investment includes the purchase of 360,537 newly issued DIM shares valued at about 51 mln dlrs and a loan of about 33 mln dlrs, it said. The loan is convertible into an additional 229,463 DIM shares, it noted. The proposed agreement is subject to approval by the French government, it said.  
SCOTT'S HOSPITALITY ACQUIRES CAPITAL FOOD. <Scott's Hospitality Inc> said it acquired all issued shares of Capital Food Services Ltd, of Ottawa. Terms were not disclosed. Scott's said Capital Food had 1986 sales of more than 20 mln dlrs and will continue to operate under its present name with existing management. Capital Food provides food services to several Ottawa institutions, the company said.  
VIDEO DISPLAY <VIDE> TO SELL CABLE TV UNIT. Video Display Corfp said it has reached a tentiative agreement to sell its existing cable television business for undisclosed terms and expects to report a gain on the transaction.  The buyer was not named. The company said it will redeploy its service assets into manufacturing and distribution. It said the operations being sold accounted for about five pct of revenues for the year ended February 28 and lost money.  
COMMUNITY BANK <CBSI> TO MAKE ACQUISITION. Community Bank System Inc said it has entered into a definitive agreement to acquire Nichols Community Bank for 2,800,000 dlrs in common stock. It said subject to approval by Nichols shareholders and regulatory authorities, the transaction is expected to be completed later this year.  
CALMAR <CLMI> SEEKS TO BE ACQUIRED BY <KEBO AB>. Calmar Inc said KEBOO Ab of Sweden, which now owns about 64 pct of Calmark, has approved the acquisition of remaining Calmar shares at 25.375 dlrs in cash at the request of the Calmar board. Calmar said a special meeting of its board will be held March Nine to form a special committee of directors not affiliated with KEBO to evaluate the transaction. KEBO is in turn 60 pct owned by <Investment AB Beijar> of Sweden.  
ITALY'S BNL NEGOTIATING PURCHASE OF GERMAN BANK. Italy's state-owned <Banca Nazionale Del Lavoro-BNL> said it is negotiating to buy a West German bank as part of its foreign expansion policy. BNL president Nerio Nesi told a news conference the Italian bank was currently involved in talks but declined to name the German institution. He said the takeover move could be seen as BNL's reply to Deutsche Bank AG <DBKG.F>, which entered the Italian market in December 1986, with the purchase of BankAmerica <BACN> subsidiary <Banca D'America e D'Italia>. Nesi said BNL had also approved a 200 mln dlr credit line to the Soviet Union aimed at enabling Soviet companies to pay for Italian imports. He gave no further details. BNL officials said the group had also decided to increase its activities in the Soviet Union by opening a representative office in Moscow this month through its subsidiary <Sogecred>, which specialises in Italian-Soviet trade.  
NORTON <NRT> TO SELL SOUTH AFRICAN OPERATIONS. Norton co said it has agreed to sell its remaining South African business, Norton co Pty Ltd, to <Global Mining and Industrial Corp> of South africa for undisclosed terms. The company said the unit accounts for less than two pct of Norton revenues and is being sold because "Growing societal pressures in the United States and the unsettled situation in south Africa had required a disproportionate amount of management tiome to oversee." Norton said the unit is profitable. Norton said it will provide the South Afrcian unit with future technical support, and products makde under that agreement will continue to be marketed under the Norton trademark.  
SAATCHI AND SAATCHI BUYS CLEVELAND CONSULTING. Advertising agents Saatchi and Saatchi Co Plc <SACHY> said it was buying <Cleveland Consulting Associates Inc> for an initial consideration of 2.0 mln dlrs. Additional payments may be made annually through the year ending March 31, 1991 to bring the total consideration up to 9.5 pct of Cleveland's average post-tax profits in the last two years of the period. The purchase of Cleveland is a further step in Saatchi and Saatchi's fast growing consulting industry, the company said. It said its consulting operations now provide a platform for major future expansion. For the 12 months ended 31 March 1986, Cleveland had 479,000 dlrs in pretax profits and forecasts one mln for 1987. At the Saatchi and Saatchi annual meeting today, the company reported a particularly strong start to the current year, with profits sharply higher than the same period last year. Saatchi and Saatchi shares rose one pence on the Cleveland announcement to 885p after yesterday's 870p close.  
UNILEVER'S <UN> CHESEBROUGH OFFERS TO SELL BASS. Chesebrough-Pond's Inc, recently acquired by a unit of Unilever N.V., said it is offering to sell its Bass shoe division, as a result of an ongoing evaluation of the long-term direction of its businesses. The diversified maker of health and beauty aids, said it acquired Falmouth, Maine-based G.H. Bass and Co in 1978, when the company reported annual sales of 59 mln dlrs. Bass is known for its high-quality casual shoes. Chesebrough said Bass's 1986 sales exceeded 170 mln dlrs.  
GROUP TRIMS MATERIAL SCIENCES <MSC> STAKE. An investor group led by Central National-Gottesman Inc, a New York investment firm, and its executive vice president, Edgar Wachenheim, said they cut their stake in Material Sciences Corp to less than five pct. In a filing with the Securities and Exchange Commission, the group said it sold 19,500 Material Sciences common shares between Feb 11 and 19 at prices ranging from 24.00 to 27.648 dlrs a share, leaving it with 239,500 shares, or 4.7 pct. As long as the group's stake remains below five pct, it is not required to disclose further dealings in Material Sciences common stock.  
TYLAN CORP <TYLN> TO SELL FURNACE PRODUCT LINE. Tylan Corp aid it has retained the investment banking firm Kahn and Harris to sell its furnace product line. The company said it has already been contacted by several potential buyers. In 1986, Tylan's furnace product shipments in the U.S. represented 10.3 mln dlrs of the company's total net sales of 28.4 mln dlrs.  
PANTERA <PANT> AND PIZZA <PZA> AGREE TO MERGE. Pantera's Corp said it agreed in principle to acquire Pizza Inn Inc in a cash and stock transaction. Under terms of the proposed transaction, each Pizza Inn share can be exchanged for either three dlrs in cash plus the lesser of 1.4 shares of Pantera's common stock or 11.50 dlrs market value of Pantera's stock, or four dlrs in cash plus a unit consisting of one share of Pantera's stock and a non-transferrable right to receive up to 0.55 share of Pantera's stock under certain conditions, it said. Completion of the transaction is subject to arrangement of financing, negotiation of a definitive agreement, and various regulatory approvals, it said. Pantera's said Pizza Inn's largest shareholder, F.J. Spillman, previously granted Pantera's an option to buy more than one mln shares of Pizza Inn common stock owned by him. Pantera's also said it retained Drexel Burnham Lambert Inc to act as its financial advisor in connection with the merger. Pizza Inn has retained Dean Witter Reynolds Inc to act as its financial advisor, Pantera's said. Yesterday, Pantera's stock closed at 9.50 dlrs on NASDAQ, while Pizza Inn's stock was quoted at 12 dlrs when the Amex halted trading pending the announcement of the proposed merger. From its Dallas headquarters, Pizza Inn said completion of the transaction is subject to certain conditions including that the price of Pantera's stock average not less than seven dlrs during the 20 trading days before the merger. Under the agreement, Pizza Inn said it will still be permitted to complete a leveraged buyout agreement with Pizza Inn Acquiring Corp, which has been approved by its shareholders, but is subject to otaining financing.  More  
LIFETIME <LFT> TO BUY SHARES OF NIPPON LACE. Lifetime Corp said it agreed to buy five mln shares, or 16 pct, of <Nippon Lace Co Ltd> for 3.28 dlrs a share, or 16.5 mln dlrs. It said it plans to enter the health care business in Japan. In addition, it said <Koba Electronics Co Ltd>, an affiliate of Lifetime, will buy four mln unissued shares, or a 12 pct stake, of Nippon for 20 mln dlrs or five dlrs a share. The company said Ohta Shoji, chief executive officer of <Toho Mutual Life Insurance Co>, owns the majority of Koba Electronics' shares. Toho Mutual Life is also the largest shareholder in Nippon Lace, the company said. Lifetime also said the <Private Bank and Trust of Zurich>, on behalf of Lifetime director and shareholder Terence Ramsden, intends to subscribe for two mln shares of Nippon Lace at the same price paid by Lifetime.  
BENEFICIAL CORP TO SELL INSURANCE UNIT, REMOVING COMPANY FROM INSURANCE BUSINESS.  BENEFICIAL CORP TO SELL INSURANCE UNIT, REMOVING COMPANY FROM INSURANCE BUSINESS  
IMTEC <IMTC> GETS MERGER OFFER. Imtec Inc said some shareholders of Computer Identics Inc <CIDN> have proposed a merger of the two companies. The company said the shareholders had previously expressed dissatisfaction with Computer Identics' management and had informed Computer Identics that the present board no longer had the support of a majority of shares held. It said the shareholders had called for the resignation of all but one of Computer Identics' directors and suggested that a new board pursue merger talks with Imtec.  But Imtec said no merger talks havew yet taken place.  
CORRECTED - LIFETIME<LFT> TO BUY NIPPON LACE SAHRES. Lifetime Corp said it agreed to buy five mln shares or 16 pct of <Nippon Lace Co Ltd> for 3.28 dlrs a share, or 16.5 mln dlrs. It said it plans to enter the health care business in Japan. In addition, it said <Koba Electronics Co Ltd>, an affiliate of Nippon, will buy four mln unissued shares, or a 12 pct stake, of Lifetime for 20 mln dlrs or five dlrs a share. - Corrects to show Nippon's affiliate Koba buying stake in Lifetime.  
TENDER LOVING <TLCI>, STAFF <STAF> EXTEND PACT. Tender Loving Care Health Care Services Inc said it and Staff Buildiers Inc have extended the term of their merger agreement until May 31. Tender Loving Care also said <Norrell Corp> agreed not to acquire any additional Staff Builders shares until September 30, adding Norrell was paid 750,000 dlrs for the standstill arrangement. Tender Loving Care said it agreed to buy the 610,000 Staff Builders common held by Norrell, about 19.1 pct of those outstanding, for 6,950,000 dlrs immediately prior to the consummation of the merger. Tender Loving Care said the extended merger agreement continues to provide for the exchange of 1.6 of its shares for each Staff Builders share outstanding. As announced February 26, the Staff Builders shareholders meeting to vote on the merger, originally convened and adjourned December 23, will be reconvened on April 22. Tender Loving Care said its payment to Norrell will include 1,950,000 dlrs in cash and five mln dlrs of a new series of eight pct Tender Loving Care convertible preferred. Tender Loving Care said it and Staff Builders have filed a revised registration and proxy statement with the Securities and Exchange Commission. Upon clearance of the revised proxy statement by the commission and its distribution to Staff Builders' shareholders, that company's management will continue to solicit proxies for approval of the merger. Tender Loving Care said it will have the power to vote about 15.8 pct of Staff Builders' shares at the adjourned meeting with a spokesman explaining that this represents the proxies held by Norrell, which started buying the stock after the record date for the meeting. In addition, Staff Builders officers and directors own about 13.8 pct of its stock and have agreed to vote in favor of the merger. Accordingly, the vote of an additional 37.1 pct of the outstanding shares will be required to approve the merger, Tender Loving Care said.  
VARIAN <VAR> IN TALKS WITH PHILIPS ELECTRONICS. Varian Associates Inc said it is holding discussions with Philips Electronics regarding the purchase of Philips' broadcast transmission unit in the United Kingdom, Pye TVT Limited. Pye TVT designs and manufactures broadcast transmission equimpment, specializing in television frequencies.  
BUTLER <BTLR> TO SELL PART OF UNIT. Butler Manufacturing Co said it agreed in principal to sell part of its controls division to Enercon Data Corp of Minneapolis. Terms of the sale were not disclosed. The transaction, expected to be closed in March, involves the controls division's energy management and power line carrier product lines. Butler said costs associated with the sale were included in its restructuring charge taken in last year's fourth quarter, and will have no effect on its 1987 earnings.  
<MAGELLAN CORP> SETS MERGER WITH BALZAC. Magellan Corp said it has entered into a letter of intent to acquire Balzac Investments Inc in a transaction that will result in former Balzac shareholders owning about 83 pct of the combined company. The company said on completion of the merger, the combined company wopuld be known as Power-Cell Inc and be engaged in the development of Balzac technology related to its Quick Charge product for charging auto batteries. The transaction is subject to approval by shareholders of both companies.  
AMERICAN AIRCRAFT CORP BUYS PRIVATE FIRM. <American Aircraft Corp> said it has acquired a 51 pct interest in privately-held <Hunter Helicopter of Nevada, Inc>. The purchase was made for an undisclosed amount of American Aircraft stock, the company said. It said the acquisition will increase shareholder equity in American Aircraft to 45 cts per share from 18 cts per share. Hunter Helicopter builds two-passenger helicopters that retail for about 50,000 dlrs.  
INTERNATIONAL TECHNOLOGY <ITX> MAKES ACQUISITION. International Technology Corp said it has purchased <Western Emergency Services Inc> in a pooling-of-interests transaction. International Technology, a hazardous materials management company, said it purchased Western Emergency, an environmental services firm, to offer a broader range of environmental services to the Gulf Coast area.  
AMERICAN AIRCRAFT BUYS INTO HELICOPTER BUILDER. <American Aircraft Corp> said it has acquired a 51 pct interest in privately-owned <Hunter Helicopter of Nevada Inc> for an undisclosed amount of stock. An American Aircraft official said the company has an option to acquire the remaining 49 pct. Hunter Helicopter is in the business of building a two passenger helicopter retailing for about 50,000 dlrs each which is certified by the Federal Aviation Administration. The helicopters will be manufactured in American Aircraft's Uvalde, Texas, plant, it added.  
INTERNATIONAL TECHNOLOGY <ITX> BUYS FIRM. International Technology Corp said it has purchased privately-held Western Emergency Service Inc in a stock transaction. Western Emergency, an environmental services firm, has annual sales of between one and two mln dlrs, compared to International Technology's roughly 240-mln-dlr annual sales, a spokesman for International Technology said.  
HARRIS CUTS STAKE IN BELL INDUSTRIES <BI>. Harris Associates L.P., a Chicago investment advisory limited partnership, said it lowered its stake in Bell Industries Inc to 1,015,800 shares, or 18.7 pct of the total outstanding, from 1,083,800 shares, or 20.0 pct. In a filing with the Securities and Exchange Commission, Harris said it sold 68,000 Bell common shares between Dec 18 and Feb 20 at prices ranging from 20.25 to 25.24 dlrs each. Harris said its dealings in Bell stock are on behalf of its advisory clients.  
GOODYEAR <GT> CHAIRMAN CRITICIZES CORPORATE RAIDS. The chairman of Goodyear Tire and Rubber Co, a concern that survived a recent hostile takeover bid, charged that "terrorists in three-piece suits" are undermining the nation's industrial base. In a speech to a meeting of south Florida business executives, Goodyear Chairman Robert Mercer lashed out at corporate raiders and takeover specialists, accusing them of causing serious harm to the companies they target. "Their interest is not in preserving and strengthening America's industrial and providing jobs," he said. "Their product is simply deals, and that is not a product which a country ... can base a future on." Last year, Mercer fought off a takeover attempt by British industrialist Sir James Goldsmith. But Goodyear's independence was preserved at a high price, Mercer said. The company bought back Goldsmith's stock for 620 mln dlrs, giving him a 93 mln dlr profit. Goodyear also paid him 37 mln dlrs for expenses and bought about 41 mln other shares for over two billion dlrs. In an effort to trim its new debt, Goodyear closed down three plants Mercer believes otherwise could have been saved, sold its motor wheel and aerospace units and reduced its payroll by 10 pct, he said. Mercer, who plans to testify tomorrow at a Senate hearing on a proposed bill to control corporate raiders, said hostile takeovers have also hurt workers.  
HANSON TRUST <HAN> COMPLETES KAISER PURCHASE. Hanson Trust PLC said Kaiser Cement shareholders today approved the previously announced merger agreement making Kaiser Cement an indirect wholly owned unit of Hanson Trust. Hanson said that promptly following the filing of the certificate of merger Kaiser Cement common shares will be delisted from the New York Stock Exchange. Hanson also said, in accordance with the merger agreement Kasier Cement also has redeemed all outstanding shares of its 1.375 dlr convertible preferance stocks and its outstanding 9 pct convertible debentures due 2005. The acquisitions total purchase price (including cost of financing the above-mentioned redemptions) will be about 250 mln dlrs, Hanson said.  
ROYAL RESOURCES <RRCO> SETS VOTE ON SALE. Royal Resources Corp said its board set an April 21 a shareholders' meeting to vote on the sale of its oil and gas properties for 3,650,000 dlrs, an increase in authorized common to 20 mln shares from 15 mln and the change of the company's name to Royal Gold Inc. The company has agreed to sell its oil and gas properties to <Victoria Exploration N.L.> of Perth, Western Australia. Royal Resources also said the sale of its interest in two gold properties -- the Colosseum Mine in San Bernardino County, Calif., and the Camp Bird mine near Ouray, Colo. -- was closed on February 27. The company said it received 4.4 mln dlrs and cancellation of the remaining balance due on the acquisition of the interest, adding this represents 2.5 mln dlrs more than it paid for the interest.  
REID-ASHMAN <REAS> TO DIVEST TEST PRODUCT UNIT. Reid-Ashman Inc said it has decided to divest its test products division, located in Santa Clara. The company said it will entertain offers through March 30. It also said Steven Reid, a company founder and president of the test division, has made an offer to purchase the unit. The company's test division accounted for about ten pct of total revenues in the year ended Sept 30, 1986 and is currently running a revenue rate of under two mln dlrs per year, it said.  
OPPENHEIMER UPS VIACOM <VIA> STAKE TO 7.7 PCT. Oppenheimer and Co, a New York brokerage firm, said it raised its stake in Viacom International Inc to the equivalent of 2,709,600 shares, or 7.7 pct of the total, from 2,232,400 shares, or 6.3 pct. In a filing with the Securities and Exchange Commission, Oppenheimer said it bought a net 477,200 Viacom common shares between Jan 19 and March 3 at prices ranging from 40.50 to an average of 49.31 dlrs each. Part of its stake is in options. It said it bought the shares as part of its arbitrage and investment business. Movie theater magnate Sumner Redstone and a Viacom management group are in a bidding war for Viacom.  
NIPPON STEEL INVESTS 8 MLN DLRS IN GTX CORP. GTX Corp said Nippon Steel Co of Japan, in a move to diversify into high technology, invested eight mln dlrs in GTX. Nippon's move was the result of current exchange rates and the revaluation of the yen, which "have made the U.S. electronics industry an attractive investment opportunity for Japanese corporations," according to a GTX statement. GTX noted that Nippon is expecting sales of 27 billion dlrs by 1995. Of that amount, six billion dlrs is targeted for electronics. GTX, located in Phoenix, makes computerized systems that read drawings and transfer them into data bases.  
C.T.C. DEALER EXTENDS BID FOR CANADIAN TIRE. C.T.C. Dealer Holdings Ltd said it extended its previously announced offer for 49 pct of <Canadian Tire Corp Ltd> to midnight on March 26. CTC, a group of Canadian Tire dealers, which already owns 17 pct of Canadian Tire, is currently appealing in an Ontario court against a previously announced Ontario Securities Commission ruling blocking CTC's 272 mln dlr bid. The blocked bid did not include non-voting shareholders, who hold 96 pct of Canadian Tire equity.  
METROPOLITAN FEDERAL <MFTN> TO MAKE ACQUISITION. Metropolitan Federal Savings and Loan Association said it has signed a letter of intent to acquire American Trust of Hendersonville, Tenn., for an undisclosed amount of cash. American Trust had year-end assets of over 40 mln dlrs.  
DOW CHEMICAL <DOW> TO SELL SOUTH AFRICAN UNIT. Dow Chemical Co said it has agreed in principle to sell its industrial chemicals and plastics business interests in South Africa and related assets to a group of South African investors for undisclosed terms, completing the sale of the company's South African assets Dow said it will continue to support its educational and health programs for South African blacks.  
SENATE'S PROXMIRE URGES CURBS ON TAKEOVERS. Senate Banking Committee chairman William Proxmire called for curbs of hostile corporate takeovers and new restrictions on risk arbitrageurs. "At the very least, it is high time that we require all risk arbitrageurs to register seperately and specifically  with the Securities and Exchange Commission and that we consider precluding brokerage firms and their employers from investing in, or owning any securities issued by, third party risk arbitrage operations," Proxmire said at the start of a hearing on corporate takeovers. "A burning issue must be whether there ought to be a complete seperation in the future of risk arbitrage and investment banking," Proxmire said. He said he was concerned that hostile takeover attempts were hurting the economy, a view shared by corporate executives who tesitified at the hearing. "I believe that takeovers have become so abusive and so tilted in favor of the financial buccaneers that remedial action is required," USX Corp chairman David Roderick said. "For Congress to allow the takeover game to continue unchecked, would be economic suicide," Champion International Corp chairman Andrew Sigler added.  
ROSSIGNOL UNIT BUYS CANADIAN SKI BOOT MAKER. French ski and tennis equipment maker <Skis Rossignol> said its 97.7-pct owned subsidiary <Skis Dynastar SA> agreed to buy Canadian ski stick and boot manufacturer <CFAS> from <Warrington Inc>. A Rossignol spokesman declined to give financial details but said turnover of CFAS was about 100 mln French francs, doubling the Rossignol group's activities in the boot and stick sectors.  
BUFFTON CORP <BUFF> BUYS B AND D INSTRUMENTS. Buffton Corp said it completed the purchase of B and D Industruments Inc for two mln dlrs cash and 400,000 shares of common stock. It said B and D is a private company headquartered in Kansas, and had sales of 4,700,000 dlrs in 1986. Buffton said the company designs and manufactures aviation computer display systems and engine instrumentation.  
ALLWASTE <ALWS> TO MAKE ACQUISITION. Allwaste Inc said it has agreed in principle to acquire an air-moving and related industrial services company it did not identify for up to 1,400,000 dlrs in common stock.  
CONVENIENT FOOD MART <CFMI> AGREES TO BUY CHAIN. Convenient Food Mart Inc said it has tentatively agreed to buy all the outstanding stock of Plaid Pantries Inc and two associated businesses in Oregon and Washington for undisclosed terms. Plaid Pantries owns and operates 161 convenience stores in the Portland and Seattle areas. The other business are two companies involved in the wholesale distribution of groceries and health and beauty aids, it said. Closing is expected by May 15.  
MARINE MIDLAND <MM> BUYS BROKERAGE ASSETS. Marine Midland Banks Inc said it has acquired the customer account base of New York discount brokerage firm Ovest Financial Services Inc for undisclosed terms to expand its discount brokerage operations in the Northeastern U.S. It said it will combine Ovest's activities with those of its Marine Midland Brokerage Service unit.  
PIEDMONT AVIATION <PIE> BOARD TO MEET TODAY. Piedmont Avaition Inc's board of directors will conduct a special meeting beginning at 1400 est today, a Piedmont spokesman said. The spokesman would not say what was on the agenda. In mid-February, Piedmont said its board would meet to discuss all proposals to acquire the company. Its board also withdrew a recommendation to accept a 65 dlrs a share cash offer from Norfolk Southern Corp <NSC> in light of a competing revised bid from U.S. Air Group Inc <U>. U.S. Air offer to buy 50 pct of the company's stock for 71 dlrs a share cash, and the remaining for 73 dlrs a share of its stock.  
HARRIS LIFTS BUILDERS TRANSPORT <TRUK> STAKE. Harris Associates L.P., a Chicago investment advisor, said it raised its stake in Builders Transport Inc to the equivalent of 466,754 shares, or 9.1 pct of the total outstanding, from 335,800 shares, or 6.7 pct. In a filing with the Securities and Exchange Commission, Harris said it bought 36,700 Builders Transport common shares on Feb 10 at 17 dlrs a share. It also said it bought debentures on Feb 23 that could be converted into 94,254 shares. Harris said its dealings in Builders Transport were on behalf of its advisory clients. It has also said it has no intention of seeking control of the company.  
INVESTORS HAVE 12.9 PCT OF EXOVIR <XOVR>. Mark Hammer, a private investor from Melville, N.Y., and members of his family told the Securities and Exchange Commission they have acquired a total of 375,200 shares of Exovir Inc, or 12.9 pct of the total outstanding. Hammer said his group has been accumulating Exovir stock since Oct 28, 1985 for investment purposes and may buy more shares or sell all or part of his current stake. While he said he has no intention of seeking control of the company, Hammer said that because of his "extensive business experience" and his interest in Exovir stock, he may be "invited" to become a member of the company's board.  
LOTUS <LOTS> TO ACQUIRE <COMPUTER ACCESS CORP>. Lotus Development Corp said it has signed a letter of intent to acquire substantially all of the assets of Computer Access Corp for undisclosed terms. Computer Asscess makes BlueFish full-text search and retrieval software for International Business Machines Corp <IBM> and compatible personal computers. The company said the acquisition is subject to approval by both boards.  
HAYES-ALBION <HAY> DELAYS SPECIAL MEETING. Hayes-Albion Corp said it has delayed the special meeting at which shareholders will vote on its merger into Harvard Industries Inc <HAVA> until March 24 from March 17 due to a delay in Securities and Exchange Commission clearance of proxy materials.  
COMDATA NETWORK <CDN> IN NEW ACQUISITION TALKS. Comdata Network Inc said it is in active talks with other parties on a possible acquisition or recapitalization of Comdata in an effort to maximize shareholder values. Comdata said <Rosewood Financial Inc> together with <Cypress Partners LP> and <Driftwood Ltd> have acquired over five pct of Comdata stock and Rosewood intends to acquire over 15 pct of Comdata. Comdata said it has not yet reached a definitive agreement with <Mason Best Co> for the previously-announced recapitalization and self-tender offer.  
FIRST SAVINGS BANK FLORIDA <FSBF> SETS MEETING. First Savings Bank of Florida said it expects a special shareholder meeting to be held around May 21 to consider the proposed merger into Gibraltar Financial Corp <GFC>. It said the annual meeting will be held April 30 to elect two directors and ratify the appointment of auditors.  
BORMAN'S <BRF> TO BUY SAFEWAY'S UTAH DIVISION. Safeway Stores Inc said it agreed to sell the assets and operations of its Salt Lake City Division to Borman's Inc under undisclosed terms. The division includes 60 operating supermarkets in five states, most of which are in Utah, Idaho and Wyoming, together with distribution and manufacturing facilities, Safeway said. It said sales for the division for the year ended January three were about 350 mln dlrs. Safeway also said the transaction is subject to Borman's ability to obtain financing and to successfully negotiate new labor agreements with the various unions involved.  
FISHER FOODS <FHR> SAYS STAKE IN FIRM SOLD. Fisher Foods Inc said <American Financial Corp> has sold its 1,500,000 Fishers shares, a 44 pct interest, to a group consisting of <American Seaway Foods Inc>, <Rini Supermarkets Inc> and <Rego Supermarkets Inc>. The company said in connection with the transaction, all five American Financial representatives have resigned from its board.  
OUTBOARD MARINE <OM> RISING ON TAKEOVER RUMOR. Wall Street traders said the stock of Outboard Marine Corp was rising on a rumor over a cable television program that Outboard is a likely takeover target of Sun Chemical Corp <SNL>. Outboard was up 3-1/8 to 34-5/8. On Tuesday it rose 1-3/8 to 31-1/2 Tuesday. A report on Cable News Network today said Sun Chemical has 4.9 pct of Outboard and is conducting a study on whether to go for control of the whole company. An Outboard Marine spokesman would not comment on the rumor. The cable program said a buyout of Outboard would be for up to 40 dlrs a share, or for a total of 680 mln dlrs. A spokesman for Sun Chemical was not immediately available. Outboard Marine last June adopted a shareholder rights plan that will be triggered when a person or group acquires beneficial ownership of 20 pct or more of its common or begins a tender offer that would result in 30 pct ownership. Wayne Jones, vice president at Outboard for strategic planning, said management wants to stay independent. "We are not trying to sell the company. We are proceeding with our strategic plans," he said. That plan includes integrating five boat companies that Outboard Marine has bought since the middle of December. Jones said all five will cost between 100 mln dlrs to 120 mln dlrs. An analyst who wanted anonymity said 40 dlrs a share is a "decent" price for outboard. "A bdding war to 50 or 60 dlrs a share is stretching it. Maybe 45 dlrs a share tops," he said. Outboard, which has 17 mln shares outstanding, is in registration for a two mln common share offering with Morgan Stanley Inc. It makes sense, the analyst said, for Sun Chemical to strike before the offering is underway.  
VARIAN <VAR> BUYS ANALYTICHEM INTERNATIONAL. Varian Associates Inc said it acquired all the outstanding stock of closely-held Analytichem International Inc for an undisclosed amount of cash. Analytichem, based in Harbor City, Calif., is a supplier of bonded phase preparation products used to prepare chemical samples for analysis, Varian said.  
DIGICON <DGC> COMPLETES SALE OF UNIT. Digicon Inc said it has completed the previously-announced disposition of its computer systems division to an investment group led by <Rotan Mosle Inc's> Rotan Mosle Technology Partners Ltd affiliate.  
COMPUTER HORIZONS <CHRZ> IN ACQUISITION. Computer Horizons Corp said it purchased ComputerKnowledge Inc, a software training education company headquartered in Dallas. Terms were not disclosed.  
POLICY MANAGEMENT <PMSC> MAKES ACQUISITION. Policy Management Systems Corp said it has acquired the majority of the assets and business of Allied Research Inc of Salem, Ore., and Consolidated Insurance Services Inc, of Springfield, Va., for undisclosed terms. It said the two companies, which had combined 1986 revenues of about two mln dlrs, provide underwriting information services to property and casualty insurers.  
UNICORP CANADA<UNI.A> CUTS PUROLATOR<PCC> STAKE. Unicorp Canada Corp told the Securities and Exchange Commission it cut its stake in Purolator Courier Corp to 286,500 shares, or 3.7 pct of the total outstanding, from 962,400 shares, or 12.4 pct. Unicorp, a management and investment holding company controlled by its chairman, George Mann, said it sold 675,900 Purolator common shares on March 2 and 3 at 34.782 and 34.750 dlrs a share. Purolator agreed this past weekend to be acquired by managers of its U.S. courier business and E.F. Hutton LBO Inc in a leveraged buyout valued at 265 mln dlrs.  
FIRM ACQUIRES <AMERICAN NUTRITION WORKS INC>. <Nusource Investments Inc>, a publicly held shell company, said it acquired American Nutrition Works Inc through a transaction in which American Nutrition shareholders received 28 mln shares of Nusource stock in exchange for their shares. American Nutrition operates a chain of stores sellings vitamins and health products. Nusource said shareholders elected a new board consisting of Richard A. Trydahl, Samuel Mineo and Charles E. Flink and voted to change the name of the company to ANW Inc.  
FIRST SOUTHERN <FSFA> TO MAKE ACQUISITION. First Southern Federal Savings and Loan Association said it has agreed in principle to acquire Horizon Financial Corp and Horizon Funding corp from <Victor Federal Savings and Loan Association> of Muskogee, Okla., for undisclosed terms. The company said the purchase is subject to approval of the boards of First Southern and Victor and regulatory agencies. Horizon Financial services mortgage loans and Horizon Funding is a wholesale loan purchasing operation. Horizon services 3.2 billion dlrs in mortgage loans.  
FIRM AGREES TO MERGE WITH LOTOQUIK INT'L. <Chatsworth Enterprises Inc>, a publicly held shell corporation, said it signed a letter of intent to merger with <Lotoquik International Ltd>, a Nassau, Bahamas-based maker of video lottery machines. Under terms of the merger agreement, Chatsworth said Lotoquik shareholders would own a majority of the surviving company.  
ASBESTEC TO BUY CONTRACTOR, RECEIVES CONTRACT. <Asbestec Industries Inc> said it signed a letter of intent to buy asbestos abatement contractor <P.W. Stephens> for three mln dlrs in cash, stock and notes. The transaction is expected to be completed early in the third quarter of its fiscal year ending September 30, 1987. Asbestec also said it expects to sign March six a 900,000 dlr contract to remove asbestos from a major apartment complex in Washington, D.C. The project is scheduled to begin on March nine.  
PARTNERSHIP CUTS STAKE IN ERC INTERNATIONAL<ERC>. Parsow Partnership Ltd, a Nevada investment partnership, said it lowered its stake in ERC International Inc to 343,500 shares or 8.3 pct of the total outstanding common stock, from 386,300 shares, or 9.3 pct. In a filing with the Securities and Exchange Commission, Parsow said it sold 42,800 ERC common shares between Jan 9 and March 2 at prices ranging from 12.125 to 14.50 dlrs each. The partnership said its dealings in ERC stock are for investment purposes and it has no intention of seeking control of the company.  
CHASE MANHATTAN STUDYING ITALIAN EXPANSION. <Chase Manhattan Bank N.A.> is considering expanding its operations in Italy, particularly in the consumer banking sector, a Chase Manhattan official said. Robert D. Hunter, Chase Manhattan area executive for Europe, Africa and the Middle East, said at a news conference that plans to broaden the bank's activities on the Italian market have not been finalised, however. Asked if Chase Manhattan would consider an acquisition in Italy, Hunter said: "We will look at any opportunity, but the prices of Italian banks have been quite high." Chase Manhattan has branches in Milan and Rome.  
HRS <IHIRF> REDUCING STAKE IN HAL ROACH <HRSI>. International H.R.S. Industries Inc said it would reduce its stake in Hal Roach Studios Inc to 22 pct from 52 pct in return for 6.3 mln U.S. dlrs from Qintex Inc's Qintex America (Media) Ltd unit. H.R.S. said that under the deal's first stage, closng March 22, it would sell Qintex 900,000 Hal Roach shares at seven U.S. dlrs a share each for a total of 6.3 mln dlrs and Roach will repay H.R.S. 3.3 mln U.S. dlrs of advances. Qintex will also complete the 16.8 mln U.S. dlr buy of 2.4 mln Roach treasury shares at seven dlrs each and provide Roach with 50 mln U.S. dlrs of financing for expansion, H.R.S. said. H.R.S. said that the agreement also provided for a second stage over one year in which it had a put option exercisable one year from closing to sell Qintex all or part of its two mln Roach shares for 8.50 U.S. dlrs a share. It said Qintex had a 30-day call option, exerciseable nine months from closing, to buy from H.R.S. all or part of one mln Roach shares at the greater of 8.50 dlrs each or the average Roach share price for three months before exercise date. Qintex will also acquire another 2.4 mln Roach treasury shares at seven dlrs a share 12 months after closng for another 16.8 mln dlrs, H.R.S. said.  
TRANS WORLD AIRLINES MAKES 52 DLR/SHARE CASH MERGER PROPOSAL FOR USAIR.  TRANS WORLD AIRLINES MAKES 52 DLR/SHARE CASH MERGER PROPOSAL FOR USAIR  
DYNAMICS CORP <DYA> IN SETTLEMENT WITH CTS <CTS>. Dynamics Corp of America said it has reached an agreement with CTS Corp resolving all differences between the two companies. It said as a result of the settlement, CTS's special board committee has stopped soliciting orders to purchase some or all of CTS. Dynamics, which now owns 27.5 pct of CTS' outstanding stock, said it agreed to limit its shareholdings to not more than 35 pct of the outstanding shares for a year following the company's 1987 annual meeting. Dynamics said the CTS board will recommend CTS shareholders vote at the 1987 annual meeting in favor of the company paying Dynamics 2,178,000 dlrs as a reimbursement for its CTS releated costs and granting Dynamics an option to buy enough CTS common at 29.625 dlrs a share to give it ownership of 35 pct of the outstanding stock. Dynamics said the price of stock under the option, exercisable for one year, is based on the average closing price for the stock for the five days ending March two. Dynamics said CTS Chairman George F. Sommer will assume the additional title of President. Former President Robert D. Hostetler is resigning as a director, as is Chief Financial Officer Gary B. Erekson, Ted Ross and Donald J. Kacek. Dynamics said the CTS board will be reduced to seven members for eight with the remaining four members of the current board and three representatives of Dynamics as new directors.  
TWA <TWA> MAKES MERGER OFFER FOR USAIR <U>. Trans World Airlines said it has proposed a cash merger of USAir Group with TWA in which the holders of USAir common would receive 52 dlrs in cash in exchange for their stock. TWA said the offer was made in a letter to Edmin Colodny, chairman and president of USAir. TWA said, however, that if the negotiated deal is not acceptable it may make an offer directly to USAir's shareholders for up to 51 pct of USAir's outstanding stock, to be purchased in a voting trust at a price lower than today's offer. TWA said it is filing an application with the Department of Transportation seeking approval of the merger as well as an application for approval, on an expedited basis, of its purchase of up to 51 pct of USAir common and the deposit of the stock in a voting trust, pending DOT approval. TWA said that in respect to USAir's recent offer for Piedmont Aviation <PIE> it believes that USAir's shareholders would prefer a cash merger proposal for USAir over its proposed acquisition of Piedmont. TWA said, however, it also would be interested in discussing a three way deal among USAir, Piedmont and TWA. TWA said the merger is subject to the USAir board redeeming the preferred stock purchase rights (the poison pill) issued to shareholders last year and taking action so that the vote of a majority of the outstanding common stock is required to approve its proposed move. Additionally, TWA said it would need a satisfactory due diligence review of USAir. TWA said it has not yet had an opportunity to obtain the necessary financing for the deal, but added it is confident that it will get it.  
CTS <CTS> AND DYNAMICS <DYA> REACH ACCORD. CTS Corp and Dynamics Corp of America reached an agreement resolving all outstanding differences between them, according to a joint statment. As a result of the settlement, a special committee of the board of directors of CTS stopped soliciting offers to buy all or part of the company, it said. CTS and DCA also agreed to dismiss all pending litigation between the two companies except for one appeal pending before the U.S. Supreme Court relating to the Indiana Control Share Chapter, it said. Under the agreement, the CTS board will immediately be reduced to seven from eight with four current directors and three representatives of DCA being elected to the board, it said. This board will be presented as the slate for CTS' 1987 annual shareholders meeting, it added. CTS' directors will recommend to shareholders that they approve reimbursement to DCA of about 2.2 mln dlrs in expenses relating to CTS, and grant DCA an option to buy up to 35 pct of CTS' shares, it said. In addition, DCA said it agreed to limit its ownership in CTS for the year following the 1987 annual meeting to not more than 35 pct of the outstanding stock. DCA currently holds 27.5 pct of the outstanding shares of CTS. Both companies said they support the agreement and believe it to be fair to both sides.  
MEASUREX <MX> SELLS SOUTH AFRICAN UNIT. Measurex Corp said it completed the sale of its Measurex (South Africa Pty) subsidiary to a group of employees who manage the operation. Measurex, a maker of computer integrated manufacturing systems, said the subsidiary represented less than one pct of worldwide revenues and the sale will have no impact on this year's earnings.  
JEFFERIES MAKING MARKET IN USAIR <U>. Jefferies and Co said it is making a market in the stock of USAir Group Inc at 48-1/2 to 50. USAir received an offer from Trans world airlines to buy the airline at 52 dlrs cash per share. USAir was halted on the New York Stock EXcahnge for dissemination of the news. It was indicated at 47 to 54.  
HEALTHVEST <HVT> SELLS SHARES. Healthvest, a Maryland real estate investment trust, said it began selling five mln shares of common stock at 21 dlrs a share. The company said it is also selling 543,237 shares to Healthcare International Inc <HII>, giving the company a 9.8 pct stake in Healthvest.  
USAIR <U> HAS NO COMMENT ON TWA <TWA> OFFER. USAir Group Inc said it had no comment on an offer it received from Trans World Airlines to buy USAir for 52 dlrs cash per share. USAir spokesman David Shipley also declined comment on Piedmont Aviation Inc <PIE>. USAir has offered 71 dlrs cash per share for half of Piedmont's stock, and 73 dlrs in its own stock for the balance. Piedmont also received an offer from Norfolk Southern Corp <NSC> of 65 dlrs cash per share. Piedmont's board was meeting today, but the company declined to say what was on the agenda. A spokesman said he could not comment on the twa action. A Norfolk Southern Corp <NSC> spokesman said the company had no comment on TWA's offer for USAir or on its proposal to negotiate a three-way merger between TWA, USAir and Piedmont. "We don't have all the details," a Norfolk Southern spokesman said. The company's 65 dlr-a-share cash offer for Piedmont stands, he said. In its offer, TWA said as an alternative to a merger with USAir, it would be interested in discussing a three-way combination among USAir, Piedmont and TWA. It said the three-way merger would serve the best interests of the shareholders of all three companies, employees and consumers.  
ITEL <ITEL> GETS FINANCING FOR ANIXTER BUY. Itel Corp said it obtained commitments from a syndicate of banks for a six-year secured loan of about 325 mln dlrs and had separately filed registration statements for two public offerings for a total of 150 mln dlrs to fund its December 1986 acquisition of <Anixter Bros Inc>. It said one of the offerings will be a new 75 mln dlrs issue of convertible exchangeable series C preferred and the other will be a 75 mln dlr issue of seven-year senior subordinated notes. Both offerings will be through Merrill Lynch Capital Markets. It said a portion of the proceeds from the offerings, together with the proceeds form the new bank loan, wll be used to repay the 395 mln dlr bridge loan Merrill Lynch and Co Inc <MER> provided for Itel to buy Anixter. Itel said the banks it obtained commitments from include Manufacturers Hanover Trust Co <MHC>, <Chemical Bank of New <York>, and the <First National Bank of Chicago>.  
GREAT AMERICAN <GTA> GAINS OVER 80 MLN IN LOANS. Great American First Savings Bank said the bank recorded gains exceeding 80 mln dlrs on sales of loans and mortgage securities valued at 1.1 billion dlrs. The San Diego-based bank said in a prepared release of its report to analysts here that the gains included 6.6 mln dlrs in arbitrage profits from the premium paid for the separation of interest and principal components of new Federal National Mortgage Association strip securities. The bank said it reported a profit of more than 20 mln dlrs on the transaction, involving 390 mln dlrs of FNMA securities, including the arbitrage gain. Great American recently announced plans to acquire <Capital Savings Bank>, Olympia, Wash., and last year acquired <Home Federal Savings and Loan Association>, Tucson, Ariz., and <Los Angeles Federal Savings Bank>, which resulted in 66 new offices and three billion dlrs in assets. The bank also said it plans to expand into other major western banking markets and is considering an acquisition in Colorado.  
TANDY BRANDS <TAB> SELLS UNIT. Tandy Brands Inc said it sold its Grate Home and Fireplace division to an investor group that includes some members of Grate's management for 1,600,000 dlrs in cash and secured notes. The company said the sale will not materially offset the 9,848,000 dlr non-recurring charge it took against the sale of the division.  
BANNER INDUSTRIES INC <BNR> COMPLETES PURCHASE. Banner Industries Inc said it completed the purchase of all Rexnord Inc <REX> common shares for its 26.25 dlrs per share cash tender offer that ended Feb 27, 1987. The purchase follows Banner receiving earlier today 310 mln dlrs under a credit agreement with Citicorp Industries Credit Inc and the Bank of Nova Scotia, and an additional 260 mln dlrs from offerings made for Banner and its subsidiary through Drexel Burnham and Lambert. As a result of the tender offer, Banner said it will own approximately 96 pct of the outstanding shares of Rexnord. The company said a merger of Rexnord and a subsidiary of Banner will be completed before mid-May.  
PHOENIX STEEL RECEIVES OFFER FOR CLAYMONT MILL. <Phoenix Steel Corp> said a group of investors offered to buy its Clayton steel plate mill for eight mln dlrs and the assumption of a bond obligation. Phoenix did not disclose the indentity of the investors. Phoenix was forced to close the Clayton mill last month. The company said the offer represents a major step in restructuring the company.  
VIACOM <VIA> MERGER EXPECTED IN 60 TO 90 DAYS. Sumner Redstone, president of National Amusements, Inc, predicted he can win regulatory approvals to wrap up the 3.4 billion dlr acquisition of Viacom International Inc in 60 to 90 days. Redstone, 63, catapulted himself into the big leagues of entertainment early today when a group of Viacom managers and their financial backers decided not to top National's bid. "We've had counsel working for some time in every region where Viacom has cable televison systems" Redstone told Reuters in a telephone interview. Redstone also said "Viacom is committed to working very closely with us to obtain approvals." Viacom has been seeking approvals for transfer of its broadcast licenses and cable systems since September when its management group first advanced a buyout plan. But Redstone turned the situation into a spirited bidding contest which was capped by the announcement this morning that Viacom's independent directors on behalf of Viacom entered into a defintive merger agreement with National. National is a family business which operates a chain of movie theaters. It is dwarfed by Viacom. Redstone said he was weary after talks dragged on through the night but also excited at the prospect of running a leading electronic media company. He noted that the number of motion picture admissions in the U.S. has shown no growth in 15 years. Of nine satellite television channels operated by Viacom, four are motion-picture oriented pay channels. Redstone said exclusive contracts with pay television networks are the emerging trend. "Up until recently you could see any motion picture on any pay channel," Redstone said. He noted Viacom has exclusive agreements with two studios and plans to sign a deal with a third company next month. Redstone said the management group's investment bankers will be paid what is due for termination of its merger agreement. Such fees could total about 30 mln dlrs. "That will be a company expense," Redstone said. He said BankAmerica <BAC> Corp has had numerous inquiries from lenders who want to participate in a 2.25 billion dlr financing for the deal. BankAmerica will provide 592 mln dlrs. After the merger, Viacom will be a subsidiary of National but 17 pct of the company will be in public hands.  
ROBERTSON UPS CAPITAL WIRE<CWCC> STAKE TO 12 PCT. New York investor Julian Robertson and several investment partnerships he controls said they raised their stake in Capital Wire and Cable Corp to 481,800 shares, or 12.2 pct of the total, from 430,200, or 10.9 pct. In a filing with the Securities and Exchange Commission Robertson and his Tiger, Jaguar, Puma and Tiger Management Co entities said they bought 51,600 Capital Wire common shares between Feb 3 and 17 at 13.25 dlrs a share. Robertson said his group has spent a total of 5.9 mln dlrs on its investment in the company so far.  
TWA <TWA> TANGLES PIEDMONT <PIE> SITUATION. Trans World Airlines Inc complicated the bidding for Piedmont Aviation Inc by offering either to buy Piedmont suitor USAir Group or, alternatively, to merge with Piedmont and USAir. Piedmont's board was meeting today, and Wall Street speculated the board was discussing opposing bids from Norfolk Southern Corp and USAir. The TWA offer was announced shortly after the Piedmont board meeting was scheduled to begin. TWA offered to buy USAir for 52 dlrs cash per share. It also said it was the largest shareholder of USAir and threatened to go directly to USAir shareholders with an offer for 51 pct of the stock at a lower price. TWA also said it believed its offer was a better deal for USAir shareholders than an acquisition of Piedmont, but it said it alternatively would discuss a three-way combination of the airlines. Market sources and analysts speculated that TWA chairman Carl Icahn made the offer in order to put his own airline into the takeover arena. "We're just wondering if he's not just trying to get TWA into play. There's speculation on the street he just wants to move onto somthing else," said one arbitrager. "We think TWA might just be putting up a trial balloon." Analysts said the offer must be taken seriously by USAir, but that the airline will probably reject it because the price is relatively low compared to other airline deals. They also said Icahn must prove his offer credible by revealing financing arrangements. "They need to show their commitment and their ability to finance. I think it's a credible offer," said Timothy Pettee, a Bear Stearns analyst. "I think it's certainly on the low end of relative values of airline deals," said Pettee. Pettee estimated 58 dlrs would be in a more reasonable range based on other airline mergers. USAir stock soared after TWA made public its offer. A spokesman for USAir declined comment, and said USAir had not changed its offer for Piedmont. USAir offered of buy 50 pct of that airline's stock for 71 dlrs cash per share and the balance for 73 dlrs per share in USAir stock. USAir closed up 5-3/8 at 49-1/8 on volume of 1.9 mln shares. Piedmont, which slipped 1/2 to close at 69-5/8, also remained silent on the TWA action. Piedmont has an outstanding 65 dlr cash per share offer from Norfolk Southern Corp. Norfolk Southern declined comment, but said it stuck with its offer for Piedmont. Norfolk owns about 20 pct of Piedmont and opened the bidding when it said it would propose a takeover of Piedmont. Some analysts said Icahn may be trying to acquire USAir to make his own airline a more attractive takeover target. "Icahn I think had wanted to sell his airline and there were no takers. I think the strategy might have called for making his investment more attractive. One way to accomplish that specific objective is to go out and acquire other airlines," said Andrew Kim of Eberstadt Fleming. "I don't know whose going to buy them, but at least this way it becomes a much more viable package," said Kim. But Icahn's financing ability for such a transaction remains in doubt, in part because of TWA's heavy debt load. Wall street sources said TWA has some cash with which to do the offer. The sources said Icahn has not lined up outside financial advisers and plans to make his own arrangements. Icahn earlier this year abandoned plans to buy USX Corp <X> and still retains 11 pct of that company's stock. Some Wall street sources said the financier's USX plan was impacted by the cloud hanging over his adviser, Drexel Burnham Lambert Inc, because of Wall Street's insider trading scandal. Industry sources also predicted USAir might reject the TWA offer on price and financing concerns. "It's littered with contingencies and it doesn't even have a financing arrangement," said one executive at another major airline. But the executive conceded a merged TWA-USAir would be a strong contender with USAir's east coast route system and planned west coast presence from PSA. USAir could feed the intenrational flights of TWA, which has a midwest presence in its St. Louis hub. Adding Piedmont, dominant in the southeast, to the mix would develop an even stronger force. The combined entity would also have TWA's pars reservation system. Such a merger would be complex and analysts said it would result in an airline iwth an 18 pct market share.  
BANNER <BNR> COMPLETES REXNORD SHARE PURCHASE. Banner Industries Inc said it completed the previously announced purchase of Rexnord Inc <REX>. It said it owns 96 pct of Rexnord's outstanding following the purchase of all Rexnord's common validly tendered pursuant to its 26.25 dlr per share cash tender offer ended February 27. Banner also said it received 310 mln dlrs pursuant to a credit agreement with <Citicorp Industrial Credit Inc> and the <Bank of Nova Scotia> and 260 mln dlrs from an offering made through Drexel Burnham Lambert Inc. The merger of Rexnord with a subsidiary of Banner will be copmleted before mid-May, the company said.  
PIEDMONT AVIATION RECESSES MEETING WITHOUT TAKING ACTION ON MERGER PROPOSALS.  PIEDMONT AVIATION RECESSES MEETING WITHOUT TAKING ACTION ON MERGER PROPOSALS  
PIEDMONT <PIE> TAKES NO ACTION. Piedmont Aviation Inc said its board meeting recessed today without taking action on proposals to combine Piedmont with other corporations. Piedmont has received opposing bids from Norfolk Southern Corp and US Air Corp. Earlier today, Trans World Airlines Inc offered to either buy Piedmont suitor US Air or, alternatively, to merge with Piedmont and U.S. Air. IN a prepared statement, Piedmont said there would be no further announcements concerning this situation today. The company declined to say when the board would meet again.  
WTC INTERNATIONAL <WAF> SETS SOUTH AFRICA TRUST. WTC International N.V. said it has sold its affiliates in South Africa to an independent trust, created to continue the operations in that country. The purchase price was about 8.4 mln dlrs, represented by a ten-year interest-bearing note, payable annually at 11 pct, to be paid by the trust out of proceeds from the South African operations, the company said. WTC said its board concluded in view of the social, political and economic situatin in South Africa, it was best to separate the company from its interests there.  
HUGHES TOOL DIRECTORS REJECT MERGER WITH BAKER. The directors of Hughes Tool Co <HT> said they would recommend to shareholders that they reject a merger with Baker International Corp <BKO> today. Hughes vice-president Ike Kerridge said the recommendation would be put to shareholders at a meeting scheduled for 10 A.M. Local time (1600 GMT) to discuss the proposed merger. Kerridge said the board met yesterday to discuss the merger but decided against it. The Hughes board objected to a U.S. Department of Justice requirement that Baker sell off several specialised subsidiaries in businesses related to oil-drilling. The Hughes board last week indicated that it might cancel the merger because of the Department of Justice requirement. The board of directors of the California-based Baker had approved the merger. On February 17 Baker said it had signed an agreement to sell one of the subsidiaries. The companies had been given until April 22 to comply with the Justice Department requirement, Kerridge said.  
BAKER INTERNATIONAL CORP SUES HUGHES TOOL SEEKING MERGER COMPLETION.  BAKER INTERNATIONAL CORP SUES HUGHES TOOL SEEKING MERGER COMPLETION  
USAIR GROUP REJECTS TRANS WORLD AIRLINES TAKEOVER BID.  USAIR GROUP REJECTS TRANS WORLD AIRLINES TAKEOVER BID  
BAKER <BKO> SUES TO FORCE HUGHES <HT> MERGER. Baker International corp said it has filed suit in state court in Houston to compel Hughes Tool Co to complete its proposed merger with Baker. Late yesterday, Hughes said it had terminated the merger agreement because Baker would not agree to an alternative divestiture plan devised by Hughes.  Hughes' board had previously found unacceptable a U.S. Justice Department consent decree that would have required broader divestitures. Baker said it has not obtained any satisfactory explanation from Hughes of its objections to the provisions of the Justice Department consent decree. Hughes yesterday adjourned the special meeting at which shareholders were to vote on the merger without permitting the counting of votes on the deal.  Baker said it believes the vote was overwhelmingly in favor of the merger. Baker said the new terms that Hughes proposed for the merger, as an alternative to the consent decree, were "more burdensome" than those of the consent decree themselves. Baker said divestitures under the consent decree would reduce revenues for the combined company by about 65 mln dlrs or three pct. Baker said it will continue to pursue the divestitures of the units named in the consent decree. It said its suit names as defendants Hughes and certain of its directors and seeks either an injunction forcing Hughes to live up to the merger agreement or "substantial" monetary damages it did not name. Baker said it believes the merger to be in the best interests of shareholders of both companies.  
USAIR <U> REJECTS TWA <TWA> TAKEOVER BID. USAir Group Inc said its board has rejected Trans World Airlines Inc's offer to acquire USAir for 52 dlrs per share in cash as grossly in adequate and not in the best interests of USAir shareholders, employees or passengers. The company said the unsolicited bid by the Carl C. Icahn-led TWA was "highly conditional." USAir said its board and that of Piedmont Aviation Inc <PIE> met separately yesterday to consider USAir's offer to acquire 50.1 pct of Piedmont for 71 dlrs per share and remaining shares for 1.5 to 1.9 common shares each, valued at about 73 dlrs per share based on the average closing price of USAir common during a period just before the merger. The company said it is continuing talks with Piedmont on arriving at a definitive merger agreement and the two companies hope to reach one very shortly. USAir said "In light of the highly conditional nature and other terms of the TWA offer, the timing of the offer and the circumstances under which it was made, USAir Group believes that the purpose of the TWA offer is to interfere with USAir Group's proposed acquisition of Piedmont. "TWA's proposal is nothing more than an attempt by Carl Icahn to disrupt at the eleventh hour USAir Group's acquisition of Piedmont, a transaction which the USAir Group board views as most beneficial to USAir Group shareholders, employees and passengers and which Mr. Icahn obviously regards as contrary to his own personal interests." USAir said its board has authorized counsel to explore all appropriate legal remedies against what it called TWA's last-minute attempt to interfere with USAir Group's acquisition of Piedmont. The company said conditions to the TWA offer include TWA obtaining financing, the USAir board redeeming defensive rights issued to shareholders last year and acting to render the "fair price" provision contained in USAir's charter inapplicable to the TWA offer and Transportation Department approval. Reuter...  
FIVE GROUPS APPLY TO BUY FRENCH TELEPHONE GROUP. Five consortia have applied to buy the French state-owned telephone equipment manufacturer <Cie Generale de Constructions Telephoniques (CGCT)>, which will give the owners control of 16 pct of the French telephone switching market, sources close to Finance Minister Edouard Balladur said. The French government has given itself until the end of April to decide which applicant will be accepted, they added. While several foreign groups have said they want to gain a foothold in the French market, their potential stake in CGCT is limited to 20 pct under privatisation laws passed last year, with 80 pct to be left in French hands. The Finance Ministry sources gave no details of the groups interested in CGCT, but several have publicly announced their candidacies. U.S. Telecommunications giant American Telephone and Telegraph Co <T.N> which has been at the centre of the two-year battle for CGCT, has teamed up with the Dutch-based <Philips Telecommunications Industrie B.V.>, a subsidiary of NV Philips Gloeilampenfabriek <PGLO.AS> and <Societe Anonyme de Telecommunications> (SAT) to present a joint bid, in association with holding company Cie du Midi SA <MCDP.P> and five French investment funds. A second bid has come from the West German electronics group Siemens AG <SIEG.F>, which hopes to take a 20 pct stake in CGCT, with the French telecommunications <Jeumont-Schneider> taking the remaining 80 pct. Sweden's <AB LM Ericsson> has also submitted a bid for the maximum 20 pct permitted, in association with French defence electronics group <Matra>, which would hold between 40 and 49 pct, and construction group <Bouygues>. Matra has already acquired CGCT's private telephone business. REUTER...  
JAPAN FUND <JPN> SEEKERS CONFIDENT OF FINANCING. The <Sterling Grace Capital Management L.P.> group said it is confident financing can be arranged if The Japan Fund's board recommend's the group's acquisition proposal. The group, which also includes <Anglo American Security Fund L.P.> and T.B. Pickens III, Tuesday proposed an entity it controls acquire for cash all the assets of Japan Fund for 95 pct of the fund's aggregate net asset value. The group said it has had a number of meetings over the past few days with domestic and overseas financial institutions. The Sterling Grace Capital group said certain of these institutions have expressed serious interest in providing financing for the proposed acquisition of Japan Fund, "adding we are reasonably confident that the financing can be quickly arranged if the Japan Fund's board of directors is willing to recommend the transaction to shareholders."  
E.F. HUTTON <EFH> STARTS PUROLATOR <PCC> BID. E.F. Hutton Group Inc said it has started its previously announced offer to purchase up to 6,332,471 common shares of Purolator Courier Corp at 35 dlrs each. In a newspaper advertisement, the company said the offer, proration period and withdrfawal rights will expire April One unless extended.  The offer is conditioned on receipt of at least 5,116,892 Purolator shares, or a 66.7 pct interest, and is the first step in a merger agreement that has been approved by the Purolator board. Hutton said it reserves the right to buy more than 6,332,471 shares but has no present intention of doing so.  It said it may waive the condition that at least 5,116,892 shares be tendered as long as it received at least a 50.1 pct interest.  If it were to receive fewer shares than that, it said it would only purchase sharesd with the consent of Purolator.  
ORANGE-CO <OJ> HOLDER RAISES STAKE. Orange-Co Inc said its largest shareholder, <Summit Resoureces Inc>, has increased its stake to 15 pct from 14 pct and now owns 644,727 shares.  
TRIMEDYNE <TMED> TO SPIN OFF STAKE IN UNIT. Trimedyne Inc said it will distribute one Class B common share of <Automedix Sciences Inc> for each four Trimedyne shares held of record on March Nine. The company said in the spinoff it is distributing its entire 44 pct interesdt in Automedix.  The spun-off stock will not be saleable for 13 months, the company said.  
MANNESMANN SEEKS STAKE IN U.S. FIRM. Mannesmann AG <MMWG.F>, the diversified engineering and pipe-making group, is interested in taking a stake in a U.S. Company or companies but has not yet found a suitable firm, a spokesman said in reply to questions. Mannesmann managing board chairman Werner Dieter told the business weekly Wirtschaftswoche in an interview that Mannesmann wanted to invest in a U.S. Company in order to strengthen its presence on the U.S. Market. Dieter said Mannesmann would act quickly when and if it found a firm in which it wanted to take a stake. The Mannesmann spokesman declined to say in which industrial sector the group may make a U.S. Acquisition or how big the acquisition might be. He also said the group had not yet completed taking over a stake in car components firm <Fichtel und Sachs AG>. Mannesmann had said in January it hoped to take a 37.5 pct stake in Fichtel und Sachs's holding company, Sachs AG, in the first quarter. The spokesman said Mannesmann had a letter of intent on the takeover from the heirs of the company's late owner but completion has been delayed by legal questions concerning the inheritance.  
TRANSPORTATION AGENCY GIVES FINAL OKAY FOR US AIR PACIFIC SOUTHWEST ACQUISITION.  TRANSPORTATION AGENCY GIVES FINAL OKAY FOR US AIR PACIFIC SOUTHWEST ACQUISITION  
COMDATA <CDN> IN MERGER AGREEMENT. Comdata Network Inc said it has entered into a letter of intent with a limited partnership managed by Welsh, Carson, Anderson and Stowe (WCAS) to merge Comdata into a corproration to be formed by WCAS. Comdata said in the merger each share of the company's stock would be converted at the holders election into either 15 dlrs in cash or a combination of 10 dlrs in cash and a unit of securities including common stock. Comdata said the terms are subject to the condition that WCAS' affiliate investors would own a minimum of 60 pct of the fully diluted stock of the new entity. Comdata said WCAS and its affiliate investors would commit 50 mln dlrs to buy the securities comprising the new entities units of securities resulting from the merger in the same proportions and at the same price as the company shareholders. Comdata said the move is subject to execution of definitive agreement and approval by Comdata shareholders as well as obtaining up to 200 mln dlrs in debt financing. WCAS told Comdata it believes that it can get commitments for this financing.  
BANKAMERICA <BAC> TO SELL GERMAN BANKING UNIT. BankAmerica Corp said it agreed to sell <Bankhaus Centrale Credit AG>, its German consumer banking subsidiary, and German credit card operations to <Banco de Santander> of Spain. Terms were not disclosed. The deal is expected to close in the second quarter, the bank holding company said. Bankhaus Centrale Credit, with 31 branches, had total assets of 927 mln marks at year-end 1986. The credit card operation services 115,000 Visa card holders and 35,000 merchants in Germany, it said. Reached later, a BankAmerica spokesman said the company would record a pretax gain of 45 mln dlrs from the transactions. The spokesman declined, however, to disclose the price paid for the operations by Banco de Santander or other terms of the deal.  
RYDER <RDR> BUYS BRITISH CALEDONIAN UNIT. Ryder System Inc said it has acquired Caledonian Airmotive Ltd from <British Caledonian Group PLC> for undisclosed terms. Caledonian Airmotive repairs and rebuilds aircraft engines.  
TRELLEBORG TAKE LARGER SLICE OF BOLIDEN. Swedish tyres, process equipment and components firm <Trelleborg AB> said it was taking a larger stake in mining and metals concern Boliden AB <BLDS.ST> than it had originally intended. Trelleborg had previously announced it was exercising an option to acquire up to 65 pct of Boliden's voting rights. In a statement, the company said they had received offers of up to 68 pct of the rights, and that they would accept all.  
GENERAL REFRACTORIES <GRX> TO SELL OPERATIONS. General Refractories Co said it agreed to sell its European refractories and building products operations for about 62 mln dlrs to an Austrian investor group. The European operations had sales of 186 mln dlrs in 1985, the last year for which results have been released, the company said. The sale, to a group headed by Girozentrale Bank of Austria, is subject to shareholder approval by April 24, 1987, it said. Its board has approved the deal, it said. General Refractories' mineral operations are not affected.  
SHAD SEES PROGRESS ON INSIDER TRADING. Securities and Exchange Commission chairman John Shad said progress was being made in stopping insider trading, but the chairman of a House subcommittee with jurisdiction over securities laws said he was concerned about conditions on Wall Street. "Greed has created a feeding frenzy on Wall Street and in the process laws are broken and multi-billion dlr corporations have become easy prey," Rep. Edward Markey, D-Mass, the chairman of the Telecommunications and Finance said at the start of a hearing on SEC activities. "Congress is understandably nervous. We perceive the current scandals as a warning of even worse things to come," Markey said. "The frenzy and disruption created by merger mania is particularly distressing." Shad said the recent cases involving Ivan Boesky, Dennis Levine and others was a warning that those who engage in insider trading were taking a heavy risk of imprisonment, high fines and disbarment from the securities industry. "Insider trading has not been eradicated, but it has been inhibited and multimillions of dollars of profits that Boesky and others have been siphoning off the markets are now flowing through to legitimate investors and traders," Shad said in his statement. Shad said insider trading cases involved only 10 pct or less of SEC enforcement actions in recent years but they have increased significantly to 125 cases brought during the past five years compared to 77 cases in the preceeding 47 years. Markey said he did not favor banning takeovers but thought the tender offer process needed reform including earlier disclosure of takeover attempts. N.J. Rep. Mathew Rinaldo, the senior subcommittee Republican, said he was introducing legislation to create a five member commission to study the securities industry for a year and report its findings and recommendations to Congress. Commission members would be appointed by the SEC. "Its primary mission would be to analyze the extent of illegal trading on insider trading and to assess the adequacy of existing surveillance systems and government oversight operations. The commission would advise Congress as to what additional resources or civil or criminal remedies are needed to combat fraud and improve compliance with federal laws," Rinaldo said.  
PERKIN-ELMER <PKN> ACQUIRES HIGH TECH FIRM. Perkin-Elmer Corp said it acquired <Atomika Technische Physik>, based in Munich, West Germany, a high technology concern specializing in surface science instruments. Terms of the acquisition were not disclosed. It said Atomika will became a part of its Physical Electronics Division, based in Eden Prairie, Minn., The division is part of its Materials Surface Technology Group.  
U.S. OKAYS USAIR <U> PACIFIC SOUTHWEST PURCHASE. The U.S. Department of Transportation said it gave final approval to USAir Group's proposed 400 mln dlr acquisition of Pacific Southwest Airlines. The department said the acquisition is not likely to substantially lessen competition and would not harm the public interest. The department had given its tentative approval of the acquisition in January. The department said it decided to make final its tentative decision after reviewing the public response to it. The agency said it rejected an assertion by Air North America, which currently is not operating but plans to start service to some of the cities served by USAIR and PSA, that the acquisition would lessen chances of new entry into those markets by other carriers. The agency said Air North America provided no support for its claim that the transaction would give the two carriers monopoly power in some markets. The transportation agency said Air North America also failed to show that there are barriers that would prevent new entrants into those markets or prevent other carriers from increasing their service. The agency noted in its final order that PSA operates exclusively in the West and Mexico while USAir serves the West for the most part with some long-haul flights from the East and Midwest. The two carriers serve five point in common; Los Angeles, San Diego, San Francico, Phoenix and Tucsonm, the agency said. The transportation department also rejected a request by the Teamsters Union, which represents some PSA workers, to require protections for PSA workers. The agency noted that USAir has promised to give protective benefits to PSA workers and that unions representing PSA workers have collective bargaining agreements that provide such protections.  
<TRIUMPH CAPITAL INC> TO MAKE ACQUISITION. Triumph Capital Inc said it has signed a letter of intent to acquire First Securities Transfer Systems Inc of Pompano Beach, Fla., for undisclosed terms. The company said it is also entering the commercial finance business through the formation of Triumph Financial corp. It said the new wholly-owned unit has extended a 350,000 dlr secured line of credit to Micro Designs Inc.  
REGAL INTERNATIONAL <RGL> UPS BELL <BPSIQ> BID. Bell Petroleum Services Inc said Regal International Inc has doubled its offer for Bell stock to one Regal share for each Bell share from half a share previously. The company said it is seriously considering the new offer but has also received an expression of interest for a possible merger into a Fortune 500 company it did not identify that will be investigated at meetings to be held later this week. It said it will explore all possibilities before recommending a final course of action.  
BANCO SANTANDER TO BUY WEST GERMANY'S CC-BANK. <Banco Santander> signed a letter of intent with Bank of America <BAC> to purchase its West German affiliate <Bankhaus Centrale Credit AG>, CC-Bank, the bank said in a statement amplifying an earlier report from Frankfurt. "The incorporation of CC-Bank in our group will provide a major boost...For chanelling investment between Spain and the European Community," the statement said. "This operation enables us to take up a solid position in West Germany ahead of Spain's full integration into the EC's financial system in five years' time." The deal included the license for Visa credit cards.  
UNITEL VIDEO SHAREHOLDER PROPOSES POSSIBLE SALE OR LIQUIDATION OF COMPANY.  UNITEL VIDEO SHAREHOLDER PROPOSES POSSIBLE SALE OR LIQUIDATION OF COMPANY  
HOLDER PROPOSES UNITEL <UNV> SALE OR LIQUIDATION. Michael Landes, a major stockholder in Unitel Video Inc, said he has asked the company to consider liquidating, or selling some or all of its assets. "Mr. Landes has requested the company to implement a program to maximize shareholder values, which might include a sale of all or part of the company or a liquidation," he said in a filing with the Securities and Exchange Commission. Landes and another Unitel Video investor, Albert Schwatz, have formed a shareholder group and together hold 329,225 common shares, or 15.2 pct of the total outstanding common stock. Landes and Schwartz had reached an agreement in principle with the New York video tape service company on a 12.50 dlr a share takeover proposal last September, but subsequent merger talks broke down in October. The investors told the SEC they are continuing to review their positions company and may acquire more shares or sell some or all of their current stake.  
HUGES TOOL COMPANY SAYS BAKER INTERNATIONAL MERGER PLAN NOT TERMINATED.  HUGES TOOL COMPANY SAYS BAKER INTERNATIONAL MERGER PLAN NOT TERMINATED  
INVESTMENT FIRM BOOSTS PUROLATOR <PCC> STAKE. Halcyon Investments, a New York investment partnership that deals mainly in risk arbitrage and stock trading, said it raised its Purolator Courier Corp stake to 726,700 shares, or 9.5 pct, from 474,900, or 6.2 pct. In a filing with the Securities and Exchange Commission, Halcyon, whose managing partner is Alan B. Slifka and Co, said it bought 201,800 Purolator common shares between Feb 3 and March 2 at prices ranging from 28.689 to 34.811 dlrs each. Halcyon, which said it has spent 20.1 mln dlrs for its Purolator common shares, said it also acquired options on Feb 27 giving it the right to buy 50,000 shares for 1.8 mln dlrs.  
AETNA <AET> TO SELL CANADIAN OPERATIONS. Aetna Life and Casualty Co said its Aetna Life and Casualty of Canada Ltd subsidiary has agreed in prnciple to sell its casualty-property subsidiary, Aetna Casualty Co of Canada to <Laurentian Group> of Montreal for undisclosed terms. The company said the agreement is subject to Canadian government approval.  
AMOSKEAG BANK <AMKG> TO ACQUIRE ENTREPO. Amoskeag Bank said it signed an agreement to acquire <Entrepo Financial Resources Inc>, a Philadelphia-based company which leases and remarkets high technology equipment. Terms of the acquisition were not disclosed. It said Entrepo has assets of 20 mln dlrs.  
COMMUNITY BANK SYSTEM <CBSI> BUYS NICHOLS BANK. Community Bank Systems Inc and the <Nichols National Bank> said they have signed a definitive agreement for Nichols to become a member of the CBSI Group of banks for an exchange of stock worth 2.8 mln dlrs. CBSI said it expects to complete the deal, pending Nichols' shareholder and regulatory approval, later this year.  
EASTMAN KODAK ACQUIRES 18.7 PCT INTEREST IN ENZON INC.  EASTMAN KODAK ACQUIRES 18.7 PCT INTEREST IN ENZON INC  
SHAD FAVORS SHORTENING DISCLOSURE PERIOD. Securities and Exchange Commission Chairman John Shad said the SEC favors shortening the current 10-day period for disclosing takeover attempts but opposes putting restrictions on the use of so-called junk bonds. "We favor shortening the disclosure period to two days," Shad told members of the House Telecommunications and Finance subcommittee when asked for his recommendation. He said the SEC's responsibility was to provide full disclosure for securities, including junk bonds, and not to make decisions based on merit. He said junk bonds had some value because of their liquidity. Shad said he opposes proposals to require those attempting takeovers to file a statement on the impact the takeover would have on the communities involved. "We've opposed it in the past. It goes far beyond investor protection," Shad said. He said he had no comment on a proposal by House Speaker Jim Wright, D- Texas, to tax securities transactions.  
HUGHES TOOL <HT> SAYS BAKER <BKO> MERGER ALIVE. Hughes Tool Co Chairman W.A. Kistler said its counter proposal to merge with Baker International Corp was still under consideration and that a merger was in the best interests of both companies. "Our hope is that we can come to a mutual agreement that is good for both companies," Kistler said of the proposed merger that would result in a 1.2 billion dlr oil field service company. "We're working very hard on this merger." Hughes' board today again adjourned a shareholders meeting to vote on the proposed merger and rescheduled it for March 11 to give Baker more time to consider the counter proposal. The Hughes board, which had previously expressed concern about a U.S. Department of Justice consent decree that would require Baker to sell its drilling bit operations and submersible pump business, met yesterday and threatened to terminate the proposed merger. The Hughes board made a counter proposal that the two companies first find acceptable buyers for the businesses before signing the decree. The directors of Baker immediately after receiving the counter proposal filed a law suit in Texas in a Texas state court to force to Hughes to complete the merger. "The uncertainty as to the price and conditions that might be imposed by the Department of Justice makes us very nervous about what the outcome might be," Kistler said, in explaining why Hughes had made the counter proposal. "We need additional time to understand why Baker did not accept our proposal." Kistler also said that the law suit filed by Baker "was not a factor" in the board's decision to keep its merger proposal on the table. He declined to comment on the allegations in the lawsuit. Kistler said Hughes would be willing to consider a compromise counter proposal, but declined to be more specific. The Justice Department in January said it would block the Hughes and Baker merger on anti-trust grounds unless both companies agreed to sign a consent decree that would provide for the sale of the assets after the merger took place. The Hughes board said it would not sign the decree because its was too "unreasonable." Hughes said that Baker should instead complete the sale of the disputed assets before the merger is finalized and given government approval. Under the decree, if Baker is unable to find acceptable buyers within a specified period of time after the decree is approved, a federal trustee would become responsible for finding a buyer. Kistler said that under those terms, the trustee could take up to 10 years to complete the sales. He also expressed concern that the combined companies might be required by the government's conditions to license some of its technology to any purchaser of the assets. Baker said last night in a statement that the required assets to be sold would reduce revenues by about 65 mln dlrs, representing about three pct of the revenues of the combined companies.  
FRANCE TO SELL STAKE IN SOCIETE GENERALE UNIT. The French government is to sell to the public its 47.42 pct direct holding in Societe Generale <STGN.PA>'s regional bank subsidiary <Societe Generale Alsacienne de Banque>, SOGENAL, from next Monday, SOGENAL officials said. SOGENAL, founded in 1881 and nationalised in 1982, is the leading French regional bank and has branches in Austria, Belgium, Luxembourg, East and West Germany and Switzerland. Chairman Rene Geronimus told a news conference the share offer price, expected to be announced tomorrow by Finance Minister Edouard Balladur, would be between 110 and 130 francs. Societe Generale, which will itself be privatised later this year, will retain its 52.58 pct majority holding in the bank, Chairman Marc Vienot said. SOGENAL officials said they forecast 1987 consolidated group profit of around 170 mln francs after an estimated 160 mln this year and 159 mln in 1985. SOGENAL's privatisation will be preceded by a capital increase to 320 mln francs from 263 mln, earning about 250 mln francs in new funds. Its shares will be divided by eight, giving a capital of 12.8 mln shares of 25 francs nominal. The bank will be listed on the Nancy stock exchange, in line with the Finance Ministry and government's aim of a regional operation, Geronimus said. He said he was hoping for shareholders to total around 30,000 to 35,000 against the 12,500 before nationalisation. Ten pct of the capital to be floated will be reserved for employees with the rest offered to the public. There will not be a share reserved for foreign investors. "This is too small an operation and anyway they will be able to buy shares in France," he said. Stockbroker sources said that a likely share offer price of 120 francs would value SOGENAL at 1.5 billion francs. Geronimus said the bank's future aim would be to reinforce its existing strong points, with no major projects planned apart from the opening soon of a Basle branch. SOGENAL is the only French bank in Austria, it set up the first foreign exchange dealing room outside Paris at its Strasbourg headquarters in 1985, and is the only foreign banking subsidiary to be a broker on the Zurich Bourse. The government's banking adviser for the operation was <Banque Privee de Gestion Financiere>, BPGF, owned by French financier Pierre Moussa's <Pallas> group, assisted by Britain's <Hambros Bank Ltd>.  
WILSHIRE <WOC> CHIEF NAMED TO JACOBS <JEC> BOARD. Wilshire Oil Co of Texas, which has a 9.8 pct stake in Jacobs Engineering Group Inc, said its chairman, Siggi Wilzig, was appointed to the Jabobs board. In a filing with the Securities and Exchange Commission, Wilshire, which holds 417,100 Jacobs common shares, said Wilzig was appointed to the Jacobs board of directors on March 3 after the company's annual shareholder meeting. Wilshire also said that Jacobs Chairman Joseph Jacobs has agreed to recommend a second Wilshire nominee for election to the board if the person was found to be qualified.  
KODAK <EK> BUYS STAKE IN ENZON <ENZN>. Eastman Kodak Co said it has acquired an 18.7 pct equity interest in Enzon Inc, a pharmaceutical company specializing in protein therapy. Kodak said it secured worldwide marketing rights for three of Enzon's PEG enzymes used in the treatment of oxygen toxicity disorders, hyperuricemia and gout. The company said it acquired two mln Enzon shares for 15 mln dlrs, with loans to Enzon of two mln dlrs and interest of 30,000 dlrs credited against the purchase price. Kodak said the drugs covered by the marketing rights are in initial stages of the U.S. Food and Drug Administration approval process.  It said the investment should provide the necessary capital to complete the FDA review process and provide a marketing outlet for the drugs. The drugs are PEG-superoxide disdmutase and PEG-catalase, for use against oxygen toxicity disorders that cause the often-fatal tissue damage associated with severe burns, organ transplants, heart attacks and trauma, and PEG-uricase, for treatment of gout and other conditions caused by the buildup of high levels of uric acid in the body.  
HARRIS CUTS TRIAD SYSTEMS <TRSC> STAKE TO 18 PCT. Harris Associates L.P., a Chicago investment advisory partnership, said it lowered its stake in Triad Systems Corp to 1,355,296 shares, or 17.9 pct of the total outstanding, from 1,463,962 shares, or 19.3 pct. In a filing with the Securities and Exchange Commission, Harris said it sold a net 108,666 Triad common shares between Dec 16 and Feb 23 at prices ranging from 10.00 to 14.25 dlrs a share. It said its dealings in Triad common stock were done on behalf of its advisory client.  
IDEA INC <IDEA> TO BUY PRIVATE FIRM. IDEA Inc said it signed a letter of intent to buy privately-held Structural Instrumentation Inc. The purchase, for an undisclosed sum, will be made mostly with IDEA common stock, the company said. IDEA said the purchase will add about 32 cts per share to its fiscal 1988 earnings. IDEA reported earnings of four cts per share for the quarter ended October 31, 1986.  
DUCOMMUN INC <DCO> SELLS DIVISION. Ducommun Inc said it sold its Airdrome Parts Co division to a group of investors headed by Airdrome's management for a cash price of 12 mln dlrs. Ducommun said the sale, coupled with its sale last month of Metermaster, were steps taken to improve the company's balance sheet and that no further sales are being contemplated.  
TEXON ENERGY <TXON> IN TALKS ON ACQUISITION. Texon Energy Corp said it has entered into a preliminary agreement to purchase an 80 pct interest in a privately-held specialty plastics manufacturing company it did not name. Texon said completion of the acquisition is subject to the consent of banks and third parties and the acquisition would be made for promissory notes and common stock.  
UNICORP AMERICAN <UAC> ACQUISITION ADVANCES. Unicorp American Corp said it has signed a definitive agreement for the previously-announced acquisition of Lincoln Savings Bank. The company said the transaction is still subject to regulatory approvals.  
FIRST EASTERN CORP <FEBC> COMPLETES ACQUISITION. First Eastern Corp said it has completed the acquisition of Peoples Bank of Nanticoke, Pa., in an exchange of 11 First Eastern shares for each Peoples share. Peoples has assets of about 24 mln dlrs.  
BISHOP GRAPHICS <BGPH> COMPLETES STORE SALE. Bishop Graphics Inc said it completed the sale of its Newport Beach Art Supply Center to Standard Brands Paint Co's <SBP> Art Store unit. Terms were not disclosed. Bishop also said it has opened a new sales and service office in Irvine, Calif.  
STANLEY WORKS <SWK> MAKES ACQUISITIONS. Stanley Works said it has acquired Acme Holding corp, a maker of sliding and folding door hardware, and the designs, patents and other righs of Plan-A-Flex Designer Co, which provides kits for home design and remodeling projects. It said Acme had 1986 sales of over 50 mln dlrs. Terms were not disclosed.  
FIRST UNION <FUNC> TO BUY FLORIDA BANK. First Union Corp said it has agreed to acquire First State Bancshares Inc of Pensacola, Fla.,  and its First State Bank of Pensacola subsidiary for about 457,000 common shares. First State has assets of about 110 mln dlrs.  The acquisition, expected to be treated as a pooling of interests, is expected to be completed in the third quarter of 1987 subject to approval by regulatory agencies and First State shareholders.  
MOULINEX STAKE SOLD TO SOME 50 INSTITUTIONS. The 20 pct stake in Moulinex SA <MOUP.PA> sold by <Scovill Inc> of the U.S. Was spread among at least 50 institutional investors worldwide, a spokesman for brokers James Capel said. Capel handled the deal. The buyers were based in centers ranging from Europe to North America and Japan, he added. Moulinex's capital is split among Jean Mantelet, president of the company, with 42 pct, along with private investors holding 38 pct and the 20 pct which has just been sold, company sources said earlier in Paris.  
TALKING POINT/PIEDMONT <PIE>. Carl Icahn's bold takeover bid for USAir Group <U> has clouded the fate of Piedmont Aviation Inc, which was being courted by USAir. Yesterday, Icahn's Transworld Airlines Inc <TWA> made a 1.4 billion dlr offer for USAir Group. The move complicated a USAir takeover offer for Piedmont, which was believed to be close to accepting the bid. Today, USAir rejected Icahn's 52 dlr per share offer and said the bid was a last-minute effort to interfere in its takeover of Piedmont. Icahn was unavailable for comment. Piedmont fell one to 68-5/8 on volume of 963,000. TWA was off 3/8 to 31-1/2. USAir fell 1-3/8 to 47-3/4 as doubt spread it would be taken over. Analysts and market sources view the TWA bid as an attempt to either trigger a counter offer from USAir or to attract a suitor who might want both airlines once they merged. "The next move is either Icahn starts a tender offer or Piedmont and USAir announce a deal," speculated one arbitrager. Some arbitragers said there is now some risk in the current price of Piedmont since it is not clear that USAir's bid will succeed. Piedmont's largest shareholder and other suitor, Norfolk Southern Corp <NSC> has offered 65 dlrs per share for the company. USAir offered 71 dlrs cash per share for half of Piedmont stock, and 73 dlrs per share in stock for the balance. Some arbitragers, however, believe the depressed price of Piedmont offers a buying opportunity since the airline is destined to be acquired by someone. USAir, they said, is the least likely to be bought. Icahn, who has long talked about further consolidation in the airline industry, also offered USAir the alternative of a three-way airline combination, including TWA and Piedmont. But Wall Street has given little credibility to Icahn's offer, which lacked financing and was riddled with contingencies. Still, he has succeeded in holding up a merger of two airlines - both of which analysts said would fit well with TWA. "You can't discount him," said one arbitrager. Analysts, however, said Icahn would have to prove he is serious by following through with his threats or making a new offer. In making the offer for USAir, Icahn threatened to go directly to shareholders for 51 pct of the stock at a lower price if USAir rejected his offer. "It's clear Icahn wants to sell and he's bluffing," said one arbitrager. Analysts said the 52 dlr per share offer was underpriced by about six dlrs per share. Some analysts believe Icahn's proposed three-way airline combination might face insurmountable regulatory hurdles, but others believe it could be cleared if the companies are acquired separately. "TWA would have to be the surviving company for the deal to work," said one analyst. Analysts said such a merger would be costly and complicated. TWA has the best cost structure, since Icahn succeeded in winning concessions from its unions. In order for the other carriers to come down to TWA's wage scale in a merger, TWA would have to be the surviving entity, analysts said. Such a move does not necessarily free Icahn of TWA, they said. They said he showed skill in reducing Ozark Airlines' costs when he merged it into TWA last year, and he might be a necessary ingredient for a merger to work. However, other analysts speculated the managements of Piedmont and USAir would not tolerate Icahn as head of a new company. They said a USAir acquisition of TWA might be a way for him to exit the company if USAir's airline is then merged into TWA.  
BAKER INT'L <BKO> HOPES TO COMPLETE MERGER. Baker International Corp treasurer Eric Mattson said the company hoped to iron out snags in a proposed merger with Hughes Tool Co <HT> but declined to say if or what compromises might be acceptable to it. The proposed merger that would create a 1.2 billion dlr oilfield services company was thrown into limbo yesterday when Hughes management, balking at the terms of a government consent decree, offered a counter-proposal to Baker. Earlier today, Hughes adjourned a shareholders meeting called to vote on the proposed merger until March 11 and said it hoped to resume negotitations with Baker. Hughes chairman W.A. Kistler told reporters that Hughes did not want to sign the Department of Justice consent decree until after Baker's submersible pump and drilling bit operations were sold. Mattson told Reuters that Baker still believed a merger was possible between the two giant oilfield service companies. "The company's position is we would like to see the merger be completed, which is in the best interests of our shareholders and their shareholders," Mattson said. "Our goal is for a merger to occur. Because of the litigation, I can't go any further than that," he said. Baker filed a lawsuit in Texas state court late yesterday to force Hughes to abide by terms of the proposed consent decree. Mattson also declined to comment on whether the directors of Baker and Hughes have scheduled any meetings to discuss the merger.  
PITT-DES MOINES INC <PDM> TO ACQUIRE STEEL UNIT. Pitt-Des Moines Inc said it will acquire <Chicago Steel Corp> in exchange for a portion of its stock.  
REXCOM <RXSC> TO ACQUIRE MARKETING FIRM. Rexcom Systems Corp said it agreed to buy all the assets of Postech Inc from Comtech Group International Ltd, a Canadian computer service company, for 70 pct of Rexcom's voting shares. The purchase will be for Rexcom common and preferred stock. Postech, the Canadian firm's U.S. marketing arm, sells computerized restaurant management systems and security systems in the U.S. The deal is subject to approval by the boards of Postech and Rexcom.  
LONE STAR<LCE> AGREES TO BUY CONCRETE OPERATIONS. Lone Star Industries Inc said it has agreed to acquire ready-mixed concrete and aggregates businesses from <Riedel International Inc> of Portland, Ore., for an undisclosed amount of cash. Lone Star's one sentence statement gave no further details and company spokesmen were not available.  
FINANCIAL CORP <FIN> UNIT BUYS BRANCHES. Financial Corporation of America's American Savings and Loan Association unit said it signed a definitive agreement to buy three retail savings branches from Gibraltar Financial Corp's <GFC> Gibraltar Savings unit. The purchase, which must be approved by the Federal Home Loan Bank and the California Department of Savings and Loans, would increase American Savings' deposits by about 40 mln dlrs. The branches are in La Jolla, La Mesa and San Juan Capistrano, Calif.  
UNICORP <UAC>, LINCOLN IN DEFINITVE PACT. Unicorp American Corp said it signed a definitive agreement to acquire Lincoln Savings Bank FSB. Under terms of the agreement announced in January, Lincoln would be acquired by a unit of Unicorp which is minority-owned by Lincoln president Alton Marshall. The acquisition will take place through a voluntary conversion of Lincoln to a federally chartered stock savings bank from a mutual federal savings bank. In connection with the conversion, Unicorp will contribute 150 mln dlrs in cash to Lincoln.  
HUMANA <HUM> DECLARES SHAREHOLDERS RIGHTS PLAN. Humana Inc said its board approved a shareholder rights plan, or so-called poison pill plan, to ensure its shareholders receive fair treatment in the event of a proposed takeover. Humana said it is now aware of any effort to gain control of the company. Under the plan its board declared a dividend distribution of one right for each outstanding common share held as of March 16. It said each right entitles holders to purchase a unit of 1/100 of a share of newly authorizes series A participating preferred at 75 dlrs per unit. Humana said the rights become effective after an entity acquires 20 pct or more of its outstanding common or tenders for 30 pct of its stock. After such an acquisition, then each right entitles holders to purchase securities of the company or an acquiring entity having a market value of twice the right's exercise price. Humana said the rights expire March 4, 1997, unless redeemed earlier. It said the rights may be redeemed by the company for one ct per right at any time prior to 10 days following a public announcement that a 20 pct position has been acquired.  
GREAT WESTERN FINANCIAL <GWF> UNIT BUYS BANKS. Great Western Financial Corp's subsidiary Great Western Bank said it will purchase three retail banking branches in south Florida with total deposits of 90 mln dlrs. Great Western said it will purchase branches in Deerfield Beach and Hollywood with approximately 80 mln dlrs in deposits from Guardian Savings and Loan Association, and one in Palm Beach with approximately 10 mln in deposits from Goldome Savings Bank.  
HUGHES <HT> CHANGES STANCE ON MERGER AFTER SUIT. A one billion dlr lawsuit pushed Hughes Tool Co into an about-face on its rejection of a proposed merger with Baker International Corp <BKO>, Wall Street analysts said. Last night, Hughes said the planned merger with Baker was off. Baker then filed a suit seeking punitive damages from Hughes for calling off the merger. At midday today Hughes said it was still interested in the merger. The analysts also said Hughes may be worried that its troubles could make it a takeover candidate. There was speculation today that Harold Simmons, the Dallas investor, might try to acquire Hughes, but Simmons told Reuters he is not interested. Simmons said he intends to file a 13-D with the Securities and Exchange Monday reporting a stake of five pct or more in some publicly traded company. He declined to identify the target other than to rule out Hughes. One analyst said another factor in the latest Hughes turnabout was Borg-Warner Corp <BOR>, which owns 18.5 pct of Hughes. Borg-Warner ex-chairman J.F. Bere, who serves on the Hughes board, is believed to favor the merger with Baker. Despite the Hughes statement that it is interested in a merger, and Baker's response that a merger is still possibile, analysts said no one could be certain where the situation was going. "I think the merger is not going through," said Phil Pace, analyst at Kidder, Peabody and Co. He said the merger "lost a lot of its appeal" when the U.S. Department of Justice required that Baker sell off its Reed Tool Co operation. Although the Reed operation is relatively small in view of the total size of a combined Baker-Hughes, Pace said "30 to 40 pct of the cost savings are tied up in that." "They (Hughes) are obviously concerned about the lawsuit," said James Crandell, analyst at Salomon Brothers Inc. "Apparently they are willing to continue discussions but whether they will alter their position, I don't know. "It's getting a little confusing," said James Carroll, analyst at PaineWebber Group Inc. He said the arguments cited by Hughes yesterday for not doing the merger "tend to be weak." Hughes said yesterday that as a condition of the merger it wanted Reed Tool and other businesses sold prior to April 22, the projected merger date. A government decree allowed a longer period of time. Hughes contended it was better to formally combine the companies with the status of Reed already settled. Baker apparently sees no reason to speed up the sale. Carroll said Baker had previously estimated 110 to 130 mln dlrs in savings if the companies were combined without selling Reed. But he said Baker now thinks 75 to 85 mln dlrs will be saved while Hughes sees a saving of only 50 to 60 mln dlrs. Carroll also noted that since the merger accord was first signed "the outlook for the industry has improved materially." Hughes may simply feel the pressure on the oil service industry is lifting.  
ARMTEK <ARM> SELLS TIRE, TRUCK TIRE BUSINESS. Armtek Corp, formerly known as Armstrong Rubber Co, said it signed agreements with <Condere Corp> for the sale of its Natchez, Miss. tire plant and its S and A Truck Tire Sales and Services Corp. Terms were not disclosed. Armtek spokesman John Sievers said S and A is a 50 mln dlr business. Earlier this week, Armtek announced the sale of its industrial tire and assembly business division to Dyneer Corp of Scotsdale, Ariz. Cash proceeds from both sales will be used to reduce outstanding debt. Under a long term supply agreement with Condere, it is anticipated that truck tires produced at the Natchez plant will be supplied to the Armstrong Tire Co, an Armtek operating company, the company said. The closing is scheduled to be concluded by March 31, it said.  
PESCH UNIT SEEKS BALANCE OF REPUBLIC HEALTH. Alpha Health Systems Corp, a wholly-owned subsidiary of Pesch and Co, said it submitted a merger proposal to the board of REPH Acquisition Co, the parent company of Republic Health Corp, which is 64 pct owned by Pesch interests. The balance of REPH's common stock is owned by members of Republic management, McDonnell Douglas Corp <MD>, Donaldson, Lufkin and Jenrette and Pacific Asset Holdings L.P. Republic currently owns 44 hospitals and manages 46 other facilities, in 25 states. Details of the proposal were not disclosed.  Company representatives were not immediately available. The proposal provides that REPH would become a wholly-owned subsidiary of Alpha and that the existing REPH common stockholders would become stockholders of Alpha, it said. REPH's board has appointed a special committee to negotiate terms of the proposed merger, Pesch said. Last year, Republic was acquired by REPH in a leveraged buyout transaction led by Dr. LeRoy Pesch, the principal shareholder of Pesch and Co. Alpha recently submitted a second offer to acquire the stock of American Medical International Inc (AMI) at 22 dlrs a share in cash and securities, which is still being considered by American Medical's board, Pesch said.  
CHEMLAWN SAYS IT REJECTS 27 DLRS PER SHARE TENDER OFFER FROM WASTE MANAGEMENT.  CHEMLAWN SAYS IT REJECTS 27 DLRS PER SHARE TENDER OFFER FROM WASTE MANAGEMENT  
CHEMLAWN <CHEM> REJECTS WASTE'S <WMX> OFFER. ChemLawn Corp said its board rejected Waste Management Inc's 27 dlr-per-share tender offer and urged its shareholders not to tender their shares. ChemLawn said its board asked management and its financial advisor, Smith Barney, Harris Upham And Co Inc, to seek other purchasers of the company to maximize shareholder value. ChemLawn also said it adopted a shareholder rights plan, or "poison pill," during a 120-intermin safeguard period its board adopted to deter attempts to acquire the company through any means other than an all-cash tender offer while it seeks other purchasers. ChemLawn also said it began litigation against Waste Management in federal court in Columbus, seeking injunctive and other relief. The suit alleges, among other things, that certain Waste Management officers and directors purchased ChemLawn's stock before making the tender offer. ChemLawn claimed such purchases possibly violated the officers' fiduciary duties and the Securities and Exchange Commission's insider trading rules. Last week, Waste Management made a tender offer to acquire ChemLawn for 27 dlrs per share or 270 mln dlrs. ChemLawn said its board was determined that Waste's offer was inadequate and not in the best interest of shareholders, and could "adversely affect" the interests of its employees, suppliers, creditors, and customers. "Our board carefully reviewed Waste Management offer and concluded that it does not fully reflect the value of the company. We strongly urge our shareholders not to tender their shares to Waste Management," said Chairman L. Jack Van Fossen. ChemLawn said its rights plan is designed to protect shareholders against abusive tactics, such as "market accumulations by Waste Management or others." Under the plan, one comon stock purchase right will be distributed as a dividend on each outstanding share of ChemLawn common. ChemLawn said its rights holders can buy a share of its common for one dlr if any entity acquires 25 pct or more of its commmon, other than by an all cash tender offer for all its shares or an approved acquisition agreement by its board. It said the rights expire July three 1987, or 60 days after they become exercisable if later than that date. It said its board may redeem the rights for five cts per right any time prior to their exercise date. ChemLawn said the plan will not be triggered by purchases purusant to Waste Management's present tender offer. It said the dividend will be paid to shareholders of record March 20.  
CONAGRA <CAG> TO ACQUIRE MONFORT <MMFT>. ConAgra Inc agreed to acquire Monfort of Colorado Inc in a stock transaction, both companies said. According to the letter of intent signed by the companies, ConAgra will acquire all of Monfort's 4.3 mln outstanding shares for 10.75 mln of its own shares. Based on ConAgra's closing price of 34 dlrs today, the transaction is worth about 356.5 mln dlrs. The merger is expected to be completed in June, they said. The companies said the acquisition will result in a restatement of ConAgra's earnings for the fiscal year ending May 31, but the restatement is not expected to materially change the previously reported, or upcoming, fiscal year-end earnings. In fiscal 1986, ConAgra had net income of 105.3 mln dlrs on sales of 5.9 billion dlrs. For its fiscal year ending August 1986, Monfort reported 25.1 mln dlrs in earnings on sales of 1.6 billion dlrs. The company is one of the largest lamb and beef producers in the U.S., producing, transporting and selling the products domestically and internationally.  
MCDONNELL DOUGLAS <MD> NOT APPROACHED BY PESCH. McDonnell Douglas Corp, which has a five mln dlr investment in Republic Health Corp <REPH>, said it has not been approached to sell its shares in Republic Health. Earlier, Alpha Health Systems Corp, a unit of Pesch and Co, said it submitted a merger proposal to the board of REPH Acquisition Co, the parent of Republic Health. LeRoy A. Pesch is the principal stockholder of Pesch. "We have not been approached by Mr. Pesch or anybody else with respect to our holdings" in Republic Health, a McDonnell Douglas spokesman told Reuters.  
SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING. Santa Fe Southern Pacific Corp will later today formally ask the U.S. Interstate Commerce Commission (ICC) to reconsider its earlier rejection of the merger of the holding company's railroad assets, a company spokesman said. "We expect to file papers late tonight" asking the ICC to reopen the rail merger case, spokesman Rich Hall said in a telephone interview from the company's Chicago headquarters. The ICC had rejected in July, on grounds it would reduce competition, the merger of the Santa Fe and Southern Pacific Railroads. The deadline for seeking ICC reconsideration of the merger plan is midnight tonight. Santa Fe Southern Pacific owns the Santa Fe railroad and holds the Southern Pacific railroad assets in trust while awaiting federal approval of the merger plan. The ICC had ordered the holding company to divest one or the other railroad but stayed its ruling pending a decision on the request for reconsideration. If the ICC ultimately decides not to reopen the case, it is expected to reinstate the divestiture order.  
ENFIELD CORP PLANS NOTES, PREFERRED ISSUE. <Enfield Corp Ltd> said it planned to issue 60 mln dlrs principal amount of notes and 1.6 mln class E preferred shares at 25 dlrs a share. The notes would bear 8 pct yearly interest, mature March 31, 2002 and be convertible to common shares on either March 31, 1997 or the business day before a fixed redemption date at 13.50 dlrs a share, Enfield said. It said each preferred share would be convertible to 1.85 common shares on either March 31, 1997 or the business day before a fixed redemption date. Gordon Capital Corp and Dominion Securities Inc agreed to acquire the issues, it said. Enfield said it would use proceeds to retire short-term bank debt and boost its 22 pct stake in <Consumers Packaging Inc> and its interest in <Federal Pioneer Ltd> through open market purchases.  
WICHITA <WRO> TO BUY FOUNTAIN OIL <FGAS>. Wichita Industries Inc said it agreed to buy Fountain Oil and Gas Inc. Wichita said it it will acquire all of the outstanding shares of Fountain in an exchange for about 11 mln newly issued Wichita common shares. Wichita presently has about 3.6 mln shares outstanding. The transaction calls for the issuance of 1-1/2 shares of Wichita common for each outstanding Fountain share. Wichita also said it made a number of refinancing agreements in connection with the acquisition.  
REPH ACQUISITION TO NEGOTIATE PESCH MERGER BID. REPH Acquisition Co said its board appointed a special committee to negotiate the terms of an offer made earlier today by <Pesch and Co> to merge with its Republic Health Corp <REPH> unit. Pesch, through its Alpha Health Systems Corp unit, offered to acquire the 36 pct of Republic Health stock that it does not already own. Terms of Pesch's offer have not been disclosed.  
HUNT GROUP HAS COMDATA STAKE, SEEKS INFLUENCE. An investor group led by members of the Hunt family of Dallas, Texas, told the Securities and Exchange Commission it has acquired a 6.2 pct stake in Comdata Network Inc <CDN> and may try to influence company policy. The investor group, led by Rosewood Financial Inc, said it opposes a company recapitalization plan worked out between Comdata and Mason Best Co, a Texas investment firm, which last reported holding about 9.5 pct of the company's stock. The Hunt group said it offered on March 3 to buy the entire 5.3 pct stake held by dissident shareholder Donald Carter at 14 dlrs each, but has received no reply as of yesterday. Rosewood, which is owned by the Caroline Hunt Trust Estate, whose trustees include Margaret Hunt Hill, also said it has notified the Federal Trade Commission of its intent to buy between 15 and 25 pct of Comdata's common stock. Under federal law, it cannot buy more than 15 pct of Comdata's stock until a 15 to 30 day waiting period is over, unless the FTC gives it early approval. Under the proposed Comdata recapitalization plan, the company would buy up to 10 mln of its common shares at 13.25 dlrs each. Mason Best, which belongs to CNI Parnters, a Texas partnership, would not tender any of its stake under the plan, but would instead buy another one mln Comdata common shares and would get representation on the company's board. The Hunt group said it has told Comdata that it considers required payments under the plan, such as a 1.5 mln dlr fee and the issuance of a warrant to buy 500,000 common shares to be a waste of the company's assets. The Hunt group, which also includes securities Texas firms Cypress Partners L.P and Driftwood Ltd, said it spent 15.2 mln dlrs on its 1,197,700 Comdata common shares.  
SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING. Santa Fe Southern Pacific Corp will later today formally ask the U.S. Interstate Commerce Commission (ICC) to reconsider its earlier rejection of the merger of the holding company's railroad assets, a company spokesman said. "We expect to file papers late tonight" asking the ICC to reopen the rail merger case, spokesman Rich Hall said in a telephone interview from the company's Chicago headquarters. The ICC had rejected in July, on grounds it would reduce competition, the merger of the Santa Fe and Southern Pacific Railroads. The deadline for seeking ICC reconsideration of the merger plan is midnight tonight.  
CARPET FIRM UNIT CUTS ALLIED PRODUCTS<ADP> STAKE. A group led by GFI Nevada Inc, a subsidiary of General Felt Industries, a Saddlebrook, N.J. carpet maker, said it cut its stake in Allied Products Corp to 169,888 shares, or 3.4 pct, from 288,652 shares, or 5.8 pct. In a filing with the Securities and Exchange Commission, GFI said it sold 114,000 Allied Products common shares on March 3 at 42 dlrs each and donated another 4,746 shares to two universities. It said its dealings in the company's common stock were for investment purposes only.  
SHEARSON HAS 5.4 PCT OF CHICAGO MILWAUKEE <CHG>. Shearson Lehman Brothers Inc, the brokerage subsidiary of American Express Co <AXP>, said it has acquired 131,300 shares of Chicago Milwaukee Corp, or 5.4 pct of its total outstanding common stock. In a filing with the Securities and Exchange Commission, Shearson said it bought the stake for 18.8 mln dlrs for investment purposes and has no intention of seeking control of the company.  
TWA <TWA> SUES USAIR <U> OVER POISON PILL. Trans World Airlines Inc said it filed suit in Delaware Chancery Court against USAir Group Inc and its board of directors seeking to invalidate its "poison pill" anti-takeover plan. TWA vice president and general counsel Mark Buckstein said TWA also sought a declaratory judgement from the court that its 52 dlr per share takeover offer for USAir would in no way interfer with USAir's possible buyout of Peidmont Aviation Inc <PIE>. Buckstein said TWA asked the court to enjoin the enforcement of USAir's shareholder rights plan, or "poison pill." Such provisions, which typically allow for the issue of securities to shareholders in the event of a hostile takeover bid, are aimed at deterring takeovers by making them more expensive. USAir earlier today rejected TWA's offer, saying TWA's bid was an attempt to interfer with its buyout of Piedmont. USAir also had said its counsel would investigate the matter. Tonight, a spokesman for USAir said the airline had no comment on TWA's lawsuit. USAir did respond, however, to a TWA request to the Department of Transportation for permission to buy up to 51 pct of USAir stock and place the stock in a voting trust pending approval of a takeover. USAir said the request was "hastily pasted together in order to take advantage of a regulatory anamoly that would allow TWA to accomplish in a regulated environment actions that would be impermissable in the non-regulated economy at large." USAir called on the transportation department to reject TWA's request.  
GROUP BOOSTS SCANDINAVIA FUND <SCF> STAKE. A shareholder group led by a Swedish investment firm and a Norwegian investor said it raised its stake in the Scandinavia Fund Inc to 2,165,300 shares, or 33.3 pct of the total, from 1,978,900 shares, or 30.5 pct. In a filing with the Securities and Exchange Commission, the group, which includes Ingemar Rydin Industritillbehor AB, the firm, and investor Erik Martin Vik, said it bought the additional shares between Feb 24 and March 9.  
OFFSHORE INVESTMENT FIRM UPS FRANCE FUND STAKE. VBI Corp, an offshore-based investment firm, told the Securities and Exchange Commission it raised its stake in the France Fund Inc <FRN> to 681,800 shares, or 9.1 pct of the total, from 551,000, or 7.4 pct. VBI, which is based in Turks and Caicos Islands, the British West Indies, said it bought the additional shares between Feb 24 and March 4. It has said it bought its France Fund stake for investment purposes only.  
MCANDREWS AND FORBES ARE OFFERING 18.50 DLRS PER SHARE FOR REVLON STOCK.  MCANDREWS AND FORBES ARE OFFERING 18.50 DLRS PER SHARE FOR REVLON STOCK  
MACANDREWS AND FORBES HOLDINGS BIDS FOR REVLON. McAndrews and Forbes Holdings Inc said it will offer 18.50 dlrs per share for all of Revlon Group Inc's <REV> outstanding common stock. McAndrews said terms of the acquisition have not been determined and are subject to the acquisition of financing. Revlon closed yesterday on the New York Stock Exchange at 14-3/4. The company said it would bid for all stock it or its affiliates do not already own. McAndrews and Forbes said it informed the board of directors of Revlon that it expects to make a formal proposal in the near future. It also said there can be no assurance as to the terms of the proposals or that the deal can be concluded.  
BOREALIS IN GOLD EXPLORATION PACT WITH FARAWAY. <Borealis Exploration Ltd> said it entered into an agreement with <Faraway Gold Mines Ltd> of Vancouver, British Columbia, under which Faraway will acquire an interest in Borealis's Whale Cove Gold Property in the Keewatin district of the Northwest Territories. Faraway will spend 1.5 mln dlrs on exploration over three years and will hold 50 pct of the property until all expenses are paid out, when the interest will drop to 40 pct. Also, Borealis and Faraway will issue treasury shares to each other and Faraway will buy 575,000 Borealis shares from Borealis president Lorne Spence.  
IMRE <IMRE> SELLS STOCK TO EUROPEAN INSTITUTIONS. IMRE Corp said it has received commitments for a group of European institutions to buy about 400,000 IMRE shares for 2,500,000 dlrs, with closing expected on March 16.  
INSTRUMENTARIUM ACQUIRES NOKIA SUBSIDIARY. Finland's medical group Instrumentarium Oy <INMR.HE> said it has acquired electronics components importers and marketers <Ferrado Oy> and <Insele Oy>, subsidiaries of Finland's electronics group Nokia Oy <NOKS.HE>. It said in a statement Ferrado and Insele will be merged into Instrumentarium's Professional Electronics and Information Systems Division. It did not disclose a price for the acquisitions but said it had issued 30,000 restricted B shares as partial payment to Nokia.  
DOME PETROLEUM REAFFIRMS DOME MINES STAKE FOR SALE AT RIGHT PRICE, SPOKESMAN SAYS.  DOME PETROLEUM REAFFIRMS DOME MINES STAKE FOR SALE AT RIGHT PRICE, SPOKESMAN SAYS  
COMMONWEALTH MORTGAGE <CCMC> BUYS ARMONK FIRM. Commonwealth Mortgage Co said it purchased Westfiar Funding Corp of Armonk, N.Y., for an undisclosed amount of cash. Commonwealth said Westfair originated 60 mln dlrs of residential mortgage loans during 1986.  
DOME<DMP> REPEATS DOME MINES<DM> STAKE FOR SALE. Dome Petroleum Ltd's 23.2 pct stake of gold producer Dome Mines Ltd continues to be for sale "at the right price," spokesman David Annesley said in response to an inquiry. Reaffirming remarks made last year by chairman Howard Macdonald, Annesley said the company is considering selling its stake in Dome Mines. Concerning Dome Petroleum's 42 pct stake in <Encor Energy Corp Ltd>, Annesley said "Encor is a strategic investment for Dome, and we have no intention of selling it." Dome spokesman Annesley said in answer to a question that he was not aware of any negotiations now under way toward the sale of Dome Petroleum's 20.9 mln Dome Mines shares. He also declined to specify at what price the company would consider selling it shares. "Clearly today's prices of more than 15 dlrs a share (of Dome Mines stock) are very attractive," Annesley commented. "We were considering the sale 'at the right price' at a time when the shares were priced around nine to 10 dlrs," he added. A price of around 15 dlrs a share would be considered "fairly attractive," Annesley said. Annesley also Dome Petroleum may be able to sell its Dome Mines' shares at a premium to market prices. "There might be an opportunity to pick up a premium on that because it would be virtually a control block in Dome Mines," he said. Dome Mines shares traded earlier at 15-1/4 dlrs, off 1/4 on the Toronto Stock Exchange. Dome Petroleum is now negotiating a plan to restructure debt of more than 6.1 billion Canadian dlrs with a group of 56 major creditors, which includes Dome Mines and Encor Energy. The company previously said it expects to detail the plan to lenders early next week.  
STONE CONTAINER <STO> COMPLETES WAITING PERIOD. Stone Container Corp said it and Southwest Forest Industries Inc <SWF> completed all waiting period requirements under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1976. Stone said it will proceed with its previously proposed acquisition of Southwest.  
SOUTHWEST <SWF>, STONE <STO> COMPLY FOR MERGER. Southwest Forest Industries said it and Stone Container Corp have complied with all federal waiting period requirements for Stone's proposed 32.25 dlr per share cash acquisition of Southwest. Southwest currently has 12.3 mln shares outstanding. The companies entered into a merger agreement on January 27, and made their initial findings with the Department of Justice and the Federal Trade Commission on February three. Southwest said the waiting period expired on March 5, without receiving a formal second request for information.  REUTER...^M  
6-MAR-1987 11:01:16.74. 6-MAR-1987 11:01:16.74 
HAWKER SIDDELEY OFFER FOR CLAROSTAT <CLR> ENDS. <Hawker Siddeley Group PLC>'s offer of 74 dlrs a share for all of Clarostat Mfg Co Inc's stock was scheduled to expire at 2400 EST yesterday. Company officials were unavailable for comment as to why the American Stock Exchange had stopped trading in Clarostat's stock for a pending news announcement.  
TAFT <TFB> GIVEN DEADLINE ON BUYOUT PROPOSAL. Narragansett Capital Inc <NARR> said it and Dudley S. Taft have requested a response from Taft Broadcasting Co by March 12. Earlier today, Taft Broadcasting said Taft, the company's vice chairman, and Narragansett had offered 145 dlrs for each of Taft's 9.2 mln outstanding shares. The company said the offer is conditioned on approval of its board, but a spokesman declined comment on whether or not the board has scheduled a meeting. The Narragansett/Taft group will provide the equity portion of the offer by contributing at least 125 mln dlrs in cash and Taft Broadcasting common, Narragansett said. It said the group has been advised by First Boston Inc's <FBC> First Boston Corp that the investment banker is "highly confident that financing for the acquisition can be consummated." Narragansett said the offer is subject to negotiation of a definitive merger agreement and definitive financing agreements as well as approval by regulators, Taft's board and Taft's stockholders. The Narragansett/Taft group said its letter to Taft's board states the group intends to return control over a significant portion of the company's equity to the Taft family while providing other stockholders with a means of realizing a very attractive value for their shares.  
SANTA FE SOUTHERN <SFX> APPEALS MERGER RULING. Santa Fe Southern Pacific Corp said it filed a petition asking the U.S. Interstate Commerce Commission to reconsider its earlier rejection of the merger of the holding company's railroad assets. The ICC had rejected in July the merger of the Santa Fe and Southern Pacific Railroads on the grounds that it would reduce competition. Santa Fe in its petition outlines an array of pro-competitive agreements with other railroads which would preserve the economic benefits of the merger for the merged railroad and the public. If the commission agrees that public benefits and competitive enhancements will result, it can vote to reopen the merger case. Interested parties have until March 25 to file statements in response to the supplemental petition.  
MONFORT <MNFT> SOARS ON ACQUISITION AGREEMENT. Monfort of Colorado Inc soared 21-1/2 to 75 in over-the-counter trading, responding to an announcement late yesterday that the firm will be acquired by Conagra Inc <CAG>. According to a letter of intent signed by both companies, Conagra will offer 2.5 of its own shares for each of Monfort's 4.3 mln outstanding shares. Conagra fell one to 33 on the New York Stock Exchange. Monfort is an integrated beef and lamb producer.  
NORDBANKEN TO AUCTION ITS FERMENTA SHARES. Sweden's <Nordbanken> banking group said it would sell the 4.2 mln B free shares deposited as loan collateral by Fermenta AB's <FRMS.ST> founder and former chief executive Refaat el-Sayed and it planned to buy them up itself. The bank said the sale - by public auction on March 16 -- was because of a debtor's inability to repay an overdue loan. The B free shares closed at 16.50 crowns on the bourse's unofficial list -- down from a peak of 300 in January 1986. Nordbanken said it did not exclude accepting a suitable bid for the shares although it expected to buy them back itself. The statement said the sale did not represent any withdrawal from Nordbanken's undertakings towards the Fermenta group and that it had been sanctioned by the other main shareholders. Nordbanken is Fermenta's third largest creditor with loans of 155 mln crowns. It was one of the four Swedish banks which last month agreed to advance the group 110 mln crowns to solve its immediate liquidity problems. Together with two other main shareholders, it also advanced Fermenta an additional 65 mln crowns until a new equity issue could be made. Fermenta is due to hold an extraordinary shareholders' meeting on Tuesday to approve the planned equity issue. Nordbanken had to make a provision against a 200 mln crown loan to el-Sayed in its 1986 results. Fermenta's new management originally hoped to raise 160 mln crowns through the new one for four rights issue and an extra 170 mln from an issue to Nordbanken, another major creditor and shareholder <Gotabanken> and the group's new majority owner <Industrivarden AB>. The share price was to be 20 crowns. But there has been doubt over the plans since the stock fell below this level this week after Fermenta's former chairman Kjell Brandstrom said the company was in a much worse state than he thought.  
MINE SAFETY APPLIANCES <MNES> TO SELL UNIT. Mine Safety Appliances Co said it agreed to sell its filter products division to Donaldson Co Inc <DCI> for undisclosed terms. It said the filter products unit will be relocated from its plant in Pennsylvania to a Donaldson facility in Illinois. It said it expects a number of the unit's 100 employees will be offered positions with Donaldson.  
DONALDSON <DCI> TO BUY MINE SAFETY <MNES> UNIT. Donaldson Co Inc said it reached an agreement to buy the assets of the Filter Products Division of Mine safety Appliances Co for undisclosed terms. It said Filter Products will operate as part of Donaldson's Industrial Group and its manufacturing operations will be relocated to Dixon, Ill., from Evans City, Pa. Donaldson said the acquisition complements its microfiltration business and internal research and development efforts.  
FIRST WOMEN'S BANK INVESTOR GROUP OFFER EXPIRES. The investor group owning about 42 pct of the outstanding capital stock of <The First Women's Bank> said a cash tender offer for the bank's remaining outstanding shares at 11 dlrs per share expired on March three. The investors said about 132,000 shares, or about 20 pct of the outstanding, had been tendered.  
FURNITURE (UFURF) UPS BENCH CRAFT (SOFA) STAKE. Universal Furniture Ltd said in a filing with the Securities and Exchange Commission that it had increased its stake in Bench Craft Inc common stock to 2,548,975 shares or 45.3 pct of the total outstanding. Universal said its Universal Furniture Industries N.V. unit bought 235,750 Bench Craft shares March 4 in the over-the-counter market.  
BANCROFT <BCV> SHAREHOLDERS REBUKE ZICO OFFER. Bancroft Convertible Fund Inc, the target of an unfriendly cash offer by <Zico Investment Holdings Inc>, said its shareholders approved proposals requiring a 66-2/3 pct affirmative vote of all outstanding shares before fundamental changes in its status could be made. Previously, only a simple majority of outstanding shares was needed to change Bancroft's investment status from a diversified to a non-diversified fund, among other things. Bancroft said its board continues to recommend that stockholders not tender their shares to Zico, a British Virgin Islands company which it said had ties to South Africa.  
BOC GROUP COMPLETES SALE OF UNIT TO CONTROLS. <BOC Group Inc>'s Airco Distributor Gases finalized the sale of its Virginia-based gas appaturs business to <Controls Corp of America>, a newly formed investment group organized by former Airco employees. Under the terms of the sale, Airco said Controls will continue to make the gas apparaturs product line under the Airco brand name, marketing the products exclusively through the Airco's distributor network.  
INSITUFORM <IGLSF> RAISES STAKE IN UNIT. Insituform Group Ltd of Guernsey, Channel Islands, said it has exercised an option to convert a 250,000 stg loan to affiliate Insituform Permaline Ltd to common shares, raising its stake in the unit to 75 pct from 50 pct. The remainder is held by Permaline's management and an investment group. Insituform also said James Colclough has resigned from its board for health reasons and secretary Scott Saltpeter has resigned, effective June Five.  
CHICAGO MILWAUKEE <CHG> GREETS SHEARSON STAKE. Chicago Milwaukee Corp said it welcomed an investment by Shearson Lehman Brothers Inc in its company. Yesterday, Shearson Lehman, a subsidiary of American Express Co (AXP), disclosed in a Securities and Exchange Commission filing that it holds a 5.35 pct interest in Chicago Milwaukee. Chicago Milwaukee's stock edged up 2-1/8 to 138 on turnover of 8,100 shares, as one of the biggest gainers on the NYSE. The stock has been trading in a 154 to 128 range for the last 52 weeks. Edwin Jacobson, Chicago Milwaukee president, declined to comment on movement of the company's stock but said,"From an investment point of view, we are pleased to have Shearson, Lehman as a substantial investor." Shearson, Lehman purchased the shares for investment purposes and may continue buying shares depending on market conditions, according to the filing. Chicago Milwaukee, which sold its railroad interests to Soo Line Railroad Co (SOO) in February 1985, currently manages and sells its real estate which consists of 28,000 parcels in 11 states.  
DAUPHIN DEPOSIT <DAPN> TO MAKE ACQUISITION. Dauphin Deposit Corp said it has signed a letter of intent to acquire Colonial Bancorp Inc of New Holland, Pa., in an exchange of 3.6 to 4.4 Dauphin shares for each colonial share, depending on the market value of Dauphin shares just before the merger takes place. The company said the acquisition is subject to approval by Colonial shareholders and regulatory authorities.  Colonial had assets at year-end of about 150 mln dlrs.  
SIEMENS WANTS TO AMEND TELECOM PLUS <TELE> PACT. Telecom Plus International Inc said <Siemens AG>'s Siemens Information Systems wants to amend its agreement to purchase Telecom's 65 pct interest in Tel Plus Communications to delay payment of 25 mln dlrs for 11 months. Telecom's shareholders are scheduled to vote on the 165 mln dlr transaction Monday. Telecom said it advised Siemens it intends to close the transaction on March 16, as scheduled, if it is approved by shareholders. A spokesman said this means Telecom will decide before the 16th whether or not to accept the proposed change. Explaining its request for the amendment, Siemens informed Telecom it had recently become aware of information causing concern with respect to certain accounting and other matters. Siemens said it will therefore need to continue its review beyond March 16 to determine whether certain representations and warranties are true. Telecom said it advised Siemens it knows of no information which would make its representations and warranties untrue. Siemens already owns the remaining 35 pct of Tel Plus. The 65 pct represenmts Telecom's principal operating asset. A Telecom spokesman said the agreement calls for payment of all but 29 mln dlrs of the price at closing. Of this, 21 mln dlrs was to be paid 11 months later and two mln dlrs per year on the anniversary date of the transaction. He said Siemens is now proposing that 25 mln dlrs be added to the 21 mln dlrs to be paid in 11 months. Telecom said the proposed amendment would also permit Siemens to defer repayment of up to an additional 50 pct of certain intercompany debt until completion of the review. Telecom said it estimates this to ba about 15 mln dlrs.  
LUCKY STORES SAYS IT AND INVESTOR EDELMAN REACHED STANDSTILL AGREEMENT.  LUCKY STORES SAYS IT AND INVESTOR EDELMAN REACHED STANDSTILL AGREEMENT  
LUCKY STORES <LKS>, EDELMAN IN STANDSTILL PACT. Lucky Stores Inc said it and investor Asher Edelman agreed on a settlement that prohibits Edelman and his group from taking specified actions to obtain control of the company and that limits the Edelman group's ownership of Lucky's stock to less than five pct of any voting securities. The arrangement also provides for the dismissal of pending litigation between the parties, Lucky Stores said. The settlement also calls for the withdrawal of Edelman's motion to intervene in pending shareholder actions against Lucky Stores and its directors, the company said. In addition, the standstill provisions also apply to Hancock Fabrics after it is spun off to Lucky stockholders, the company said. Lucky Stores said the arrangement also calls for the company to submit to stockholders at a special meeting set for December 31 a proposal from Edelman seeking their views concerning repeal of a charter provision that limits the voting power of substantial Lucky stockholders. Edelman, who owns about five pct of Lucky Stores' stock, last year was rebuffed in his effort to acquire the company. Last October Lucky Stores implimented a restructuring program that included the repurchase of 28 pct of its own common shares and reincorporation in Delaware. The spinoff of Hancock Textile Co, a chain of 324 retail stores, was one of the key parts of the restructuring program. Edelman and his Plaza Securities Co partnership subsequently sued in an attempt to block the proposed reincorporation, which was a condition of the repurchase and restructuring plan. Under this latest arrangement, Lucky Stores said it agreed to reimburse the Edelman group for 2.8 mln dlrs of out-of-pocket expenses, which include litigation and other costs. "This agreement serves the interests of Lucky stockholders by avoiding the significant cost of continued litigation and the accompanying demands on management time," Lucky Stores chairman John Lillie said in a statement.  
TWA CONFIRMS OWNERSHIP OF 15 PCT OF USAIR GROUP.  TWA CONFIRMS OWNERSHIP OF 15 PCT OF USAIR GROUP  
SOROS GROUP TELLS SEC IT MAY BUY UP TO 49.9 PCT OF FAIRCHILD INDUSTRIES.  SOROS GROUP TELLS SEC IT MAY BUY UP TO 49.9 PCT OF FAIRCHILD INDUSTRIES  
TWA <TWA> CONFIRMS OWNERSHIP OF USAIR <U> STOCK. Trans World Airlines Inc said it owns more than four mln USAir Group shares or about 15 pct of the total outstanding. TWA said it may acquire additional shares in the open market, in private transactions, through a tender offer or otherwise, subject to Department of Transportation approval. TWA has offered 52 dlrs per share for USAir Group. USAir rejected the offer yesterday, calling it a last-minute attempt to interfere with its takeover of Piedmont Aviation Inc. A TWA spokesman said the company has filed an application for approval on its offer to buy USAir with the Department of Transportation, and later today it will file a response to USAir's motion with the DOT to dismiss the TWA application. TWA said it made the statement today on its stock position in USAir in response to inquiries. Traders said they believed TWA Chairman Carl Icahn was the buyer of an 855,000 share block crossed today by Salomon Brothers. USAir stock was trading at 50-3/4, up 2-1/4 on heavy volume of 3.1 mln shares. TWA stock fell 3/8 to 30-5/8. While analysts and arbitragers have speculated that Icahn may have made the offer for USAir in order to trigger the acquisition of his own airline, Wall Street today began to take Icahn's effort more seriously. "I think he's going to be the next Frank Lorenzo of Wall Street," said one market source. Lorenzo, chairman of Texas Air, has added to his airline with the acquisitions of Eastern Airlines and People Express Airlines. There was also speculation that Icahn would like to buy USAir and then sell TWA as a merged company.  
GROUP TO BOOST FAIRCHILD INDUSTRIES (FEN) STAKE. An investor group led by New York investor George Soros said it was dissatisfied with Fairchild Industries Inc management and was considering boosting its holdings to as much as 49.9 pct of the aerospace and aviation company's outstanding stock. The group already controls 1,647,481 Fairchild Industries shares or 11.5 pct of the total outstanding. The group said it filed on Wednesday with federal antitrust regulators for advance clearance to buy enough additional shares to increase its total stake to up to 49.9 pct of the total outstanding stock. The group said its representatives had met with Fairchild Industries officials to inform them "that they do not believe management has been successful in enhancing or protecting shareholder values." It said it was considering the additional share purchases to enable it to "assert a greater degree of influence over the future management and policies of the issuer." It said a decision on the specific level of share ownership it would seek depended on market prices, future changes in management policies, available financial resources and other factors. The group said it also reserved the right to pursue other measures intended to influence Fairchild management and policies, either alone or in concert with other investors. The group includes Soros and Quantum Fund, an offshore investment firm headquartered in Curacao, Netherlands Antilles that is advised by Soros. The group said that since its last SEC filing, made Jan. 2, it had purchased no additional Fairchild shares and had sold 6,700 shares on the New York Stock Exchange Jan. 19. A Fairchild Industries official later said Soros had told the company he was not dissatisfied with its management. "Contrary to the filing, Mr. Soros has told the company today that he is not dissatisfied with management," Fairchild's Bill Fulwider told Reuters. However, Fulwider said the company would have nothing to say at this time about Soros' disclosure that he may buy up enough additional Fairchild shares to hold as much as 49.9 pct of the company's outstanding stock.  
SOUTHTRUST <SOTR> TO ACQUIRE FOUR BANKS. SouthTrust Corp, a 5.1 billion dlr multibank holding company, said it entered into agreements to acquire four Florida banks with assets totalling more than 233.2 mln dlrs. Terms of the agreements were not disclosed. The four banks are: Central Bank of Volusia County, with assets of 59.3 mln dlrs, Bank of Pensacola with assets of 63.8 mln dlrs, and Vista Bank, which operates Vista Bank of Volusia County with assets of 37.8 mln dlrs and Vista Bank of Marion County with assets of 72.3 mln dlrs. It said the agreements are subject to regulatory approval.  
CARLING O'KEEFE SELLS STAR OIL UNIT TO UNITED COAL CANADA FOR 57 MLN DLRS.  CARLING O'KEEFE SELLS STAR OIL UNIT TO UNITED COAL CANADA FOR 57 MLN DLRS  
HUGHES TOOL <HT> UP ON MERGER SPECULATION. Hughes Tool Co rose one to 12-1/4 on 1,658,000 shares, apparently reflecting a belief that Baker International Corp <BKO> will be able to persaude Hughes to go along with a previously announced merger, analysts said. This week Hughes seemed to back out of the merger but then said it was still interested in talking. "It sounds like Baker wants it and if people are convinced a deal is going to go through the stock goes up," said analyst Phil Pace of Kidder, Peabody and Co. Holders of Hughes would get 0.8 share of Baker for each Hughes share.  
AETNA <AET> REACHES AGREEMENT TO BUY COMPANY. Aetna Life and Casualty Co said it reached an agreement to acquire a 49 pct interest in Universal Life and General Insurance Sdn Bhd <ULG>, a Malaysian composite insurance company. The company said the 51 pct balance will continue to be owned by Malaysia Apera Group of private investors. The transaction is valued at approximately 37.8 mln dlrs and is expected to be completed by March 31, 1987.  
CARLING O'KEEFE<CKB> SELLS OIL UNIT, TAKES GAIN. Carling O'Keefe Ltd said it sold its Star Oil and Gas Ltd unit to United Coal (Canada) Ltd for about 57 mln dlrs cash. Carling said it will record an extraordinary gain of about two mln dlrs after tax, or nine cts a common share resulting from the sale. The company did not elaborate further on financial terms. A Carling official later said in reply to an inquiry that Carling would record the extraordinary gain in its fourth quarter ending March 31. The move came after Carling's 50 pct-owner <Rothmans Inc> agreed last week to sell its Carling stake to <Elders IXL Ltd>, of Australia, for 196.2 mln Canadian dlrs.  
DOME PETE<DMP> SAID TO BE PRESSED TO SELL ENCOR. Dome Petroleum Ltd is under pressure from one of its largest creditors, <Canadian Imperial Bank of Commerce>, to sell its 42 pct stake in <Encor Energy Corp Ltd>, energy industry analysts said. Dome has pledged its 42.5 mln Encor shares as security for part of its debt to Commerce Bank, estimated last year at 947 mln Canadian dlrs, and the bank wants Dome to sell the stock to pay down debt, analysts said. "The Commerce has been slowly but surely moving Encor in the direction that might make it a saleable asset," said one analyst who asked not to be named. Dome earlier said it was not considering selling Encor Energy, but reaffirmed the company's 23.3 pct interest in Canadian gold producer Dome Mines Ltd <DM> is up for sale "at the right price." Dome, now negotiating a plan to restructure more than 6.10 billion dlrs in debt, sees Encor as a strategic investment that it does not intend to sell, spokesman David Annesley said. The Encor shares do not pay dividends. A Commerce Bank spokesman also declined comment when asked whether it is pressing Dome to sell its Encor stake. At current market prices, Dome's stake in Encor would be valued at about 308 mln dlrs, while its 20.9 mln Dome Mines shares would be worth about 319 mln dlrs. Recent strength in the price of Encor shares may also prompt Commerce Bank to press Dome to divest its holding in the Canadian oil and gas producer, analysts said. "Encor's stock price has improved quite substantially in recent weeks with a runup in crude prices," Peters and Co Ltd oil analyst Wilf Gobert commented. "The possibility is that Commerce Bank would like to see it sold at these levels because they can get more for it now than they have been able to in recent years," he added. Encor traded earlier on the Toronto Stock Exchange at 7-1/8, near its 52-week high of 7-1/2 and up from around six dlrs in early February. The company also recently set up its own operating management, which was previously carried out by Dome Petroleum, Maison Placements Canada Inc analyst Denis Mote commented. Dome and Encor "are actually going to get farther apart. So (the sale) does make a lot of sense," Mote said. However, analysts said Dome will resist any moves to divest Encor in favor of retaining the operating assets since sale proceeds would likely go directly to pay down Dome's debt to Commerce Bank. "I think they'll probably try to hang onto Encor as long as they can," said Bache Securities Inc analyst Doug Weber. Some of Dome's group of 56 major creditors might move to block such a sale, arguing they have a claim on company assets. "Other creditors generally all want to make sure that something they might be able to get a piece of is not being sold out from under them," said analyst Gobert. Another stumbling block would be Encor's 225 mln dlr joint liability in loans to Dome Petroleum advanced by Arctic Petroleum Corp of Japan for Beaufort Sea exploration. Analysts said a similar hurdle could also hinder the possible sale of Dome Petroleum's interest in Dome Mines. Dome Mines has guaranteed 225 mln dlrs of Dome Petroleum's debt and has a "right of consent" to the sale of Dome Petroleum's holding. Presumably, a potential buyer of the Dome Mines shares would seek some type of relief on the company's debt obligations connected with Dome Petroleum, Gobert said. Dome spokesman Annesley earlier declined to specify at what price the company would consider selling its Dome Mines shares, but said current prices of more than 15 dlrs a share "are very attractive."  
LANDMARK SAVINGS <LSA> COMPLETES OFFICE SALE. Landmark Savings Association said it completed the sale of its Whitehall, Pa., office, including deposits of about 31 mln dlrs, to Parkvale Savings Association. Landmark said it realized a gain of about 1.1 mln dlrs on the sale. The price was not disclosed.  
BELL AND HOWELL <BHW> COMPLETES SALE OF UNIT. Bell and Howell Co said it completed the sale of its computer output microfilm business to COM Products Inc, a unit of privately-held <LeBow Industries Inc>. The sum of the deal was not disclosed. The unit makes a device that prints data directly from a computer onto microfilm.  
<DTD ENTERPRISES INC> IN REORGANIZATION. DTD Enterprises Inc said it filed an 8-K report indicating that <EaglesLair Development Corp> had assumed control of the company under a reorganization plan signed last month. The company said D. Gerald Lach, president of EaglesLair, was named president and a director of DTD. In addition, DTS's board resigned and EaglesLair appointed new directors, the company said.  
DUMEZ UNIT HAS 94 PCT OF WESTBURNE (WBI). (Dumez Investments I Inc) said 94.7 pct of Westburne International Industries Ltd's outstanding common shares have been deposited under its takeover bid. It said it has received about 11,070,000 shares under its 22.50 dlrs per share offer which expired yesterday. Dumez said it will proceed to acquire the remaining common shares to give it 100 pct ownership of Westburne. Dumez is a private company owned jointly by (Dumez S.A.) and (Unicorp Canada Corp).  
CANADIAN NATURAL RESOURCES TO SELL STAKE. <Canadian Natural Resources Ltd> said it agreed in principle to sell 80 pct of its working interest in certain producing and non-producing natural gas properties located in southwestern Saskatchewan. The transaction is expected to close on April 1, 1987, the company said. It did not identify the buyer nor give the selling price. Proceeds will be used to satisfy a February 1987 repayment demand by one of the company's lenders. Any excess proceeds will be added to working capital, the company said.  
MALRITE BUYS COX'S RADIO STATION UNIT. <Malrite Guaranteed Broadcast Partners L.P.> said it bought WTRK Inc from <Cox Enterprises Inc> for 13.8 mln dlrs in cash. It said WTRK owns and operates WTRK-FM, a Philadelphia radio station. Transfer of the license for the sation has been approved by the Federal Communications Commission. Malrite Guaranteed said it is a limited partnerhip formed to acquire and operate radio and tv stations. It said Malrite Communications Group Inc <MALR> is the general partner.  
CYACQ EXTENDS TENDER FOR CYCLOPS <CYL>. Cyacq Corp said it extended its 80 dlr a share tender offer for Cyclops Corp to March 20 from today. Cyacq was formed by Citicorp Capital Investors Ltd and Audio Video Affiliates INc <AVA> to acquire Cyclops. THe tender offer began on February six. The offer is conditioned upon at least 80 pct of the outstanding shares and at least 80 pct of the voting securities being tendered before expiration of the offer. As of March six, only 353 shares of Cyclops' 4.1 mln outstanding shares had been tendered.  
MONO GOLD SAYS PARTNERSHIP AGREES TO BUY SHARES. <Mono Gold Mines Inc> said <NIM and Co Ltd> Partnership agreed to buy flow-through shares with an aggregate purchase price of up to 300,000 dlrs. It said, subject to fulfillment of certain conditions, the price of the shares to NIM will be 79.6 cts per share, and said it will issue 376,955 shares to the partnership. Mono also said options to buy up to 300,000 dlrs of its capital stock at 65 cts per share expire March three. It said 39,000 options have been exercised to net the company 25,530 dlrs to be added to working capital.  
USAIR GROUP REQUESTS TRANSPORTATION DEPARTMENT ORDER TWA TO DIVEST STAKE.  USAIR GROUP REQUESTS TRANSPORTATION DEPARTMENT ORDER TWA TO DIVEST STAKE  
USAIR <U> SEEKS ORDER AGAINST TWA <TWA>. USAir Group said it sought the help of the U.S. Department of Transportation in its takeover fight with Trans World Airlines Inc, asking the Department to order TWA to sell its USAir shares. "What they have done is in direct violation of the Federal Aviation Act," USAir said. It said TWA week filed a cursory application with the Department of Transportation for approval of its proposed 1.65 billion dlr takeover of USAir. USAir rejected the offer and said it asked the Department of Transportation to dismiss the application. USAir said it requested the dismissal because TWA avoided pre-merger notification requirements, and also did not provide a competitive and public interest analysis required under regulations. USAir said if the application is dismissed, TWA would be limited to buying only 1.5 pct of its 31.7 mln outstanding shares. If the application is approved, TWA could buy up to 10 pct, it said. TWA has said it owns less than 10 pct of USAir's stock. TWA today revealed that it has increased its holdings to more than four mln USAir shares, 15 pct of the outstanding. TWA vice president general counsel Mark Buckstein said the company had made appropriate filings with the DOT and was in compliance with the law.  
TAFT<TFB> BIDDERS WOULD SELL ENTERTAINMENT UNIT. A proposed buyout of Taft Broadcasting Co by Dudley Taft and other investors includes a plan to sell the company's Entertainment Group, according to one of the investors. Jonathan Nelson, managing director of Narragansett Capital Corp <NARR>, which is participating in the buyout plan, declined to say if buyers have already been lined up for the Entertainment Group. "We are considering selling the group," Nelson said. Wall Street analysts said any of the Hollywood film studios which might be interested. Taft Broadcasting Co did not comment on the 145 dlr per share offer. Taft has 9.2 mln shares outstanding, of which 12 pct are owned by the Taft and Ingalls families. Dudley Taft relinquished the title of president in July but continues as vice chairman of the company. Taft-Narragansett requsted a response to its proposal by March 12. If the plan is accepted, Taft would be a private company financed by high yield bonds and bank debt, Nelson said. Narragansett is an investment management company specializing in leveraged buyout transactions. Taft shares climbed 19 to 151-1/2, causing arbitrageurs to say investors believe the bidders may raise their price. Robert M. Bass, who controls 25 pct of the stock, and American Financial Corp, holder of 15 pct, did not return telephohe calls seeking comment. But Dennis McAlpine, analyst at Oppenheimer and Co, said "I don't think it's worth 150 dlrs." He noted Taft recently agreed to sell a group of independent television stations at a loss. He said the entertainment group, which includes the Hanna-Barbara animation studios, is currently hampered by a glut of animated product. Taft Broadcasting has never commented on reports that its major stockholders met recently to discuss a break-up of the company. MacAlpine said there are lots of options for reshaping the company with a distribution of various pieces to the major shareholders among the possibilities. Analyst Alan Gottesman of L.F. Rothschild, Unterberg Towbin Inc said the Bass group has been increasing its stake in the belief the company would be worth more with a change in its strategy. He said Bass pushed for sale of the independent television stations because the company paid too much.  
SANDOX BUYS STAUFFER SEEDS. Sandoz Corp's Northrup King Co said it bought Stauffer Seeds, a unit of Stauffer Chemical Co. Terms were not disclosed.  
ENERGEN <EGN> BUYS MUNICIPAL GAS SYSTEM. Energen Corp said it has acquired the distribution system of the City of Clanton, Ala. for about 1.2 mln dlrs. The 1,800 customer system is the fourth municipal system acquired by Energen's Alabama Gas subsidiary since October 1986, adding a total of 9,600 customers.  
MONOCLONAL ANTIBODIES <MABS> BUYS COMPANY. Monoclonal Antibodies Inc said it signed an agreement in principle to buy <Genesis Labs Inc> for about 10 mln dlrs of common stock. The agreement is subject to shareholders approval and other conditions.  
JUSTICE DEPT. SUPPORTS DISMISSAL OF TWA APPLICATION FOR USAIR CONTROL.  JUSTICE DEPT. SUPPORTS DISMISSAL OF TWA APPLICATION FOR USAIR CONTROL  
TRANSPORTATION DEPARTMENT DISMISSES TWA APPLICATION FOR USAIR CONTROL.  TRANSPORTATION DEPARTMENT DISMISSES TWA APPLICATION FOR USAIR CONTROL  
CONTINENTAL FEDERAL <CONF> HOLDER TO SELL STAKE. Continental Federal Savings and Loan Association said it was told that an estate holding 38 pct of its stock plans to sell its stake at a premium over the current stock price. Continental said the estate of Harold Vernon and certain parties have signed a letter of intent to sell the stock for 12.25 dlrs a share, for a total of about 6,538,000 dlrs. Continental's stock closed at seven in over-the-counter trading. The thrift said the buyer is <BAC Inc>, a corporation acting for certain unindentified parties.  
BROKER'S CHOICE TO BUY RUBBERTECH. Broker's Choice Capital Inc said it signed a letter of intent to buy Rubbertech Inc. If approved by shareholders, Broker's Choice will issue about 71 mln shares of authorized, but unissued shares of restricted common stock to Rubbertech Inc.  
DOT DISMISSES TWA <TWA>, USAIR <U> APPLICATION. The U.S. Department of Transportation (DOT) said it dismissed on technical grounds an application by Trans World Airlines Inc for DOT approval for it to take control of USAir Group. The DOT added, however, that TWA was free to refile when it could put together an application for control that met the agency's procedural requirements. The DOT acted shortly after the U.S. Department of Justice disclosed that it supported dismissal of the TWA application. It was not immediately clear what impact the denial would have on TWA's bid to take over USAir. In its control application, TWA had acknowledged that additional documentation was required to meet DOT rules and said it would file more material on the morning of March 9. But the DOT said it would not wait. "We have determined to dismiss TWA's application for approval of the acquisition of USAir," it said in an order issued late Friday. "TWA's application clearly fails to comply with the filing requirements of our regulations...and TWA has provided no reason why we should accept such a deficient filing," it added. "Accordingly, we will dismiss the application. TWA, of course, may refile it when it is able to comply with our procedural rules," the DOT said. The agency added that it would continue to consider a separate TWA request for federal clearance to purchase USAir stock through a voting trust. USAir had said earlier today that it asked the DOT to dismiss the TWA control application, on grounds the TWA filing did not meet DOT requirements.  
TWA <TWA> TO REFILE WITH U.S. AGENCY. Transworld Airlines Inc plans to refile an application Monday with the Department of Transportation for approval to acquire USAir Group <U>. The DOT late today dismissed TWA's application to acquire USAir. "When the DOT opens for business on Monday morning, we will be refiling a perfected and completed section 408 application," said TWA general counsel Mark Buckstein. Buckstein said the DOT ruled the application, which was filed Wednesday, was incomplete. He said he did not yet know why the agency objected.  
JUSTICE ASKS U.S. DISMISSAL OF TWA (TWA) FILING. The Justice Department told the Transportation Department it supported a request by USAir Group that the DOT dismiss an application by Trans World Airlines Inc for approval to take control of USAir. "Our rationale is that we reviewed the application for control filed by TWA with the DOT and ascertained that it did not contain sufficient information upon which to base a competitive review," James Weiss, an official in Justice's Antitrust Division, told Reuters.  
SAVINGS ACUISITION IN CALIFORNIA ANNOUNCED. The Federal Home Loan Bank Board (FHLBB) announced the acquisiton of South Bay Savings & Loan Association in Gardena, Calif., By Standard Pacific Savings of Costa Mesa, Calif. The FHLBB said South Bay had assets of 62.5 mln dlrs and Standard Pacific had 312.8 mln dlrs in assets. It was the fourth federally-assisted merger or acquisition of a troubled savings institution this year, the FHLBB said.  
MALAYSIA BAILS OUT ANOTHER COMMERCIAL BANK. Malaysia's central bank said it acquired a 59.2 pct stake in ailing <United Asian Bank Bhd> (UAB), the sixth largest commercial bank in the country, to rebuild public confidence in it. UAB called for a rights issue last November to raise 152.49 mln ringgit to rectify its capital deficiency following an accumulated loss of 107.61 mln ringgit at end-1985, the central bank, Bank Negara, said in a statement. But only 16.99 mln ringgit in shares was taken up by shareholders, mainly local Indian and Malay businessmen and the Indian Government. Bank Negara said it subsequently took up the unsubscribed shares, totalling 135.5 mln of UAB's new paid-up capital of 228.74 mln ringgit. It said the shares, held in trust, will be eventually sold. The central bank early this week also announced that it had bought 49.4 pct stake in another troubled commercial bank, <Perwira Habib Bank Malaysia Bhd>, after the latter raised its capital to 405 mln ringgit from 105 in mid-January this year. Bank Negara said it does not intend to hold on to the shares of the two banks. "The injection of capital in PHB and in UAB including the recamp of management in these banks are some of the measures taken by the bank to strengthen public confidence in the stability of the these banks," it added. The central bank said it is invoking Section 39A of the Banking (Amendemnt) Act 1986 empowering it to grant loans to an ailing bank or to buy a stake in it.  
ICI SELLS STAKE IN LISTER AND CO. Imperial Chemical Industries Plc <ICI.L> said it had today placed its 19.4 pct stake in Lister and Co Plc with L Messel and Co and that it had now been placed widely among institutions. Lister is a manufacturer, dyer and finisher of cotton, silk wool and man-made fibres.  
STANDARD PACIFIC <SPF> ACQUIRES SOUTH BAY S/L. Standard Pacific LP said it has acquired substantially all of the assets and liabilities of South Bay Savings and Loan Association of Newport Beach. The firm said over the weekend that it will conduct its savings and loan activities through Standard Pacific Savings FA, a Federal stock association. On Friday, the Federal Home Loan Bank Board in Washington said it approved the acquisition of South Bay S and L, a 62.5 mln dlr state-chartered stock association, by Standard Pacific, which has 312.8 mln dlrs in assets. The Bank Board said that the Federal Savings and Loan Insurance Corp will make a cash contribution, provide capital loss coverage and indemnify Standard Pacific against undisclosed liabilities.  
PIEDMONT <PIE> AGREES TO USAIR <U> BUYOUT. USAir Group Inc said Piedmont Aviation Inc has agreed to be acquired for 69 dlrs per share. The company, in a newspaper advertisement, said it has started a tender offer for all Piedmont shares at that price, and the Piedmont board, with two directors absent, has unanimously approved the bid.  The offer and withdrawal rights are to expire April Three unless extended, and the bid is to be followed by a merger at the same price. USAir said Piedmont has granted it an irrevocable option to buy up to 3,491,030 new shares under certain circumstances. Piedmont now has about 18.6 mln shares outstanding. USAir said the tender is conditioned on receipt of enough shares to give USAir at least a 50.1 pct interest in Piedmont on a fully diluted basis and approval by the U.S. Department of Transportation of a voting trust agreement permitting USAir to buy and hold shares pending review of its application to gain control of Piedmont. The company said its merger agreement with Piedmont provides that the offer is not to be amended without Piedmont's prior written consent in any way that would be adverse to Piedmont shareholders, but it said it could cut the number of shares to be bought without Piedmont's consent. USAir said it could reduce the number of Piedmont shares to be purchased in the offer to no less than the minimum number needed to cause the voting trust condition of the bid to be satisfied. In that case, it said if more than that minimum number of shares were tendered, it would buy shares on a pro rata basis. In February USAir had offered to pay 71 dlrs per share in cash for 50 pct of Piedmont's stock and 1.55 to 1.90 USAir shares for each remaining Piedmont share. Last week, Carl C. Icahn-controlled Trans World Airlines Inc <TWA> made a conditional offer to acquire USAir for 52 dlrs per share, a bid that was rejected by the USAir board. The Transportation Department on Friday rejected TWA's application to acquire USAir on the grounds that the application failed to comply with department regulations by omitting necessary information.  TWA said it would refile today, providing the information needed. On Friday TWA said it had already acquired four mln shares or 15 pct of USAir.  
SOSNOFF STARTS BID FOR CAESARS WORLD <CAW>. <MTS Acquisition Corp>, a company formed by Martin T. Sosnoff, said it has started a tender offer for all shares of Caesars World Inc at 28 dlrs each. In a newspaper advertisement, MTS said the offer and withdrawal rights expire April Three unless extended. Sosnoff, a New York investor, already owns about four mln of Caesars' 30.3 mln shares outstanding, or about 13.3 pct, and is Caesars' largest shareholder.  Caesars owns casino hotels in Nevada and honeymoon resorts in Pennsylvania's Pocono Mountains.  It also controls Caesars New Jersey Inc <CJN>, which owns an Atlantic City, N.J., casino hotel. For the second quarter ended January 31, Caesars World earned 12.6 mln dlrs on revenues of 190.4 mln dlrs, up from earnings of 7,500,000 dlrs and revenues of 163.8 mln dlrs a year before.  For all of fiscal 1986, the company earned 41.0 mln dlrs on revenues of 694.4 mln dlrs. MTS said the offer is conditioned on receipt of at least enough shares to give Sosnoff a majority interest on a fully diluted basis, the arrangement of sufficient financing to buy all Caesars shares not already owned and pay related costs and approval by the New Jersey Casino control Commission and the NEvada Gaming Commission and State Gaming Control Board. MTS said Marine Midland Banks Inc <MM> has committed to lend it 100 mln dlrs for the acquisition and use its best efforts to syndicate another 400 mln dlrs in senior financing for the transaction. It said its financial adviser, PaineWebber Group Inc <PWJ>, has stated in writing that subject to market conditions, it is highly confident that it can arrange commitments for up to 475 mln dlrs in "mezzanine" financing. MTS said it does not expect problems in obtaining New Jersey and Nevada regulatory approval for the acquisition, since ownership in a Caesars stake has already been cleared. In June 1986, Sosnoff requested a seat on the Caesars World board, a request that has not yet been granted.  In September 1986, Sosnoff, who is chairman of <Atalanta/Sosnoff Capital Corp>, filed for clearance under U.S. antitrust laws to raise his interest in Caesars World to 25 pct. Sosnoff said, in a letter to Caesars World chairman and chief executive officer Henry Gluck, that "The decision to go directly to the shareholders was made at the urging of may financial and legal advisors, who repeatedly stressed to me the lack of responsiveness of the management in the past." Sosnoff, who said he has made numerous efforts to express his views to management on ways of maximizing shareholder values, said Caesars twicce refused his request for a board seat.  "My advisers felt that, had I given you advance notice, you would have used the time to throw up obstacles to my offer rather than giving it serious consideration," he said. Sosnoff said he hopes that Caesars World management will be willing to negotiate an acquisition agreement with him. "As I have indicated publicly in the past, I believe operating management of the company has performed well and that appropriate consideration should be given to a significant equity interest for them in the company following the acquisition," Sosnoff said in the letter to Gluck. MTS said Sosnoff has asked the company to fix March 27 as the record date for the determination of shareholders entitled to authorize action without a meeting -- including the election or removal of directors.  
TRUMP MAKES BID FOR CONTROL OF RESORTS <RTB>. Casino owner and real estate developer Donald Trump has offered to acquire all Class B common shares of Resorts International Inc, a spokesman for Trump said. The estate of late Resorts chairman James M. Crosby owns 340,783 of the 752,297 Class B shares. Resorts also has about 6,432,000 Class A common shares outstanding. Each Class B share has 100 times the voting power of a Class A share, giving the Class B stock about 93 pct of Resorts' voting power. More  
Chrysler to take over Renault stake in American Motors, says Renault.  Chrysler to take over Renault stake in American Motors, says Renault  
APPLIED CIRCUIT<ACRT> SELLS ELECTRONICS BUSINESS. Applied Circuit Technology Inc (ACT) said it has agreed in principal to sell its primary computer electronics business to the <Sanpao Group> of San Francisco. ACT said it has not disclosed the deal's terms, but added that 50 pct of the sale price is in cash, with the remainder to be paid over a two year period. The deal is expected to close on March 31, ACT said. ACT said it made the move to concentrate resources on its pharmaceuticals subsidiaries.  
USAIR <U> ACQUIRES 9.9 PCT OF PIEDMONT <PIE>. USAir Group Inc said it has acquired 2,292,599 Piedmont Aviation Inc shares, about 9.9 pct on a fully diluted basis, from Norfolk Southern Corp <NSC>. The acquisition of Piedmont by USAir has been approved by the directors of both companies. USAir said it has been advised by Norfolk Southern that the company supports the proposed merger and intends to tender all of its remaining 1,477,829 Piedmont common shares in response to USAir's tender offer which began today. This total includes shares issuable upon conversion of Piedmont preferred, USAir noted. USAir said Piedmont has about 23.1 mln common shares on a fully diluted basis, adding its offer is conditioned on the tender of at least 9,309,394 shares, representing 40.2 pct of the oustanding shares on a diluted basis. USAir said the 3,491,030 new shares it has an option to buy represent 18.5 pct of Piedmont's currently outstanding shares.  
GENCORP TO SELL LOS ANGELES TELEVISION STATION TO WALT DISNEY CO.  GENCORP TO SELL LOS ANGELES TELEVISION STATION TO WALT DISNEY CO  
NATIONWIDE CELLULAR <NCEL> COMPLETES PURCHASE. Nationwide Cellular Service Inc said it has completed the previously-announced acquisition of privately-held Nova Cellular Co, a Chicago reseller of mobile telephone service with 1,800 subscribers, for about 65,000 common shares. Nova Cellular has an accumulated deficit of about 650,000 dlrs and had revenues of about 2,600,000 dlrs for 1986, it said.  
MCDOWELL <ME> TO MERGER WITH <INTERPHARM INC>. McDowell Enterprises Inc said it has signed a definitive agreement to acquire an 80 pct interest in privately held Interpharm Inc for a 19.9 pct interest in McDowell. The company said subject to contigencies, including future sales and profit levels, McDowell could over a four-year period acquire 100 pct of Interpharm in exchange for up to 51 pct of McDowell's voting stock. It said the transaction is expected to be completed within 60 days, at which time the McDowell board would be restructured to include Interpharm management.  
RENAULT, CHRYSLER IN ACCORD FOR CHRYSLER TO BUY AMC. Regie Nationale des Usines Renault <RENA.PA> said it and Chrysler Corp <C> have signed a letter of intent in which Chrysler plans to buy American Motors Corp <AMO.N>, 46 pct owned by Renault. Renault President Raymond Levy said in a statement issued by the French state car group the agreement was an important stage in Renault's redeployment. "It will allow Renault to continue its export programme to the U.S. And also opens a perspective of cooperation with a major American constructor," the statement said. Under the terms of the letter of intent, Chrysler will purchase Renault's stake held in the form of bonds and shares. The Renault statement quoted Chrysler Chairman Lee Iacocca as saying, "We welcome AMC shareholders into the Chrysler family." He added that the accord would allow Renault and Chrysler to study the development of future products destined to be distributed by Renault and Chrysler in the North American and world markets. "Renault is a leader in our industry and I am happy to be working with them," Iacocca was quoted as saying. Chrysler will pay for Renault's AMC interests held in bonds by a 200 mln dlr bond and will pay up to 350 mln dlrs for Renault share interests, depending on AMC sales and future profits, the Renault statement said. The statement said the agreement in principle gave each side 30 days to put together a definitive accord. Approval would also be necessary from the Renault, Chrysler and AMC boards, from AMC shareholders and the relevant government authorities. If the deal goes ahead, the statement said, AMC shareholders other than Renault will receive Chrysler shares for each of their shares valued at four dlrs. AMC shareholders with convertible preferential shares will have the possibility to exchange them for Chrysler shares on the same conditions as those they would have had in exchanging them for AMC shares.  
FIRST BOSTON AFFILIATE TO ACQUIRE ALLEGHENY INT'L FOR 24.60 DLRS/SHR.  FIRST BOSTON AFFILIATE TO ACQUIRE ALLEGHENY INT'L FOR 24.60 DLRS/SHR  
STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER. Sweden's Stora Kopparbergs Bergslags AB <SKPS ST> said it had now acquired 90 pct of shares in rival pulp and paper makers Papyrus AB, thus passing the threshold above which it can compulsorily buy the rest of the company. Remaining shareholders would have until later this month to sell their shares to Stora, the company said in a statement. Stora announced last September it would acquire Papyrus at a price of 5.8 billion crowns, thus forming Europe's second largest forest group after London-based Reed International Plc <REED L>.  
WHITE ENGINE BOUGHT BY PRIVATE INVESTOR. White Engine, a manufacturer of industrial and automotive diesel and gasoline engines with more than 100 mln dlrs in sales, said it has been sold to a group of group investors. White Engine said the purchase is led by Donald Stewart, a private investment banker, along with White senior executives. A source close to the transaction said the purchase prices is being set at more than 55 mln dlrs. The company said it will change its name to Hercules Engines Inc, and Stewart will be the majority interest owner, as well as the president and chief executive officer. In addition, John Lennon, current chairman and chief executive officer, will remain as chairman, he company said. And Joseph G. Scheetz, currently president, will be vice chairman, according to the company.  
STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER. Sweden's Stora Kopparbergs Bergslags AB <SKPS.ST> said it has now acquired 90 pct of shares in rival pulp and paper makers Papyrus AB, thus passing the threshold above which it can compulsorily buy the rest of the company. Remaining shareholders would have until later this month to sell their shares to Stora, the company said in a statement. Stora announced last September it would acquire Papyrus at a price of 5.8 billion crowns, thus forming Europe's second largest forest group after London-based Reed International Plc <REED L>.  
ALLEGHENY INT'L <AG>, FIRST BOSTON SET MERGER. Allegheny International Inc said it has entered into an agreement to merge with an affiliate of First Boston Inc's <FPC> First Boston Corp in a transaction valued at about 500 mln dlrs. Allegheny said the agreement calls for holders of its common to receive 24.60 dlrs a share. Holders of the company's 2.19 dlrs cumulative preference shares will receive 20 dlrs a share and those owning its 11.25 dlrs convertible preferred will receive 87.50 dlrs a share. Allegheny International said the agreement calls for the First Boston affiliate to start a cash tender offer for all outstanding shares of Allegheny's common, cumulative preferred and convertible preferred. The company said First Boston has committed to provide all financing necessary to acquire such securities in the tender offer which is estimated to be about 500 mln dlrs. It said the agreement is also subject to the waiver by March 13 of certain conditions under the company's existing bank credit agreement. Allegheny International's statement did not name or describe the First Boston affiliate involved in the agreement. It did say the offer for the company's stock will be conditioned also on the valid tender of securities representing at least a majority of the voting power for the election of directors of the company and the valid tender of at least two third's of the outstanding cumulative preferred and convertible preferred shares.  
CHRYSLER SAYS AMC HOLDERS TO GET CHRYSLER STOCK WORTH FOUR DLRS A SHARE UNDER BUYOUT PLAN.  CHRYSLER SAYS AMC HOLDERS TO GET CHRYSLER STOCK WORTH FOUR DLRS A SHARE UNDER BUYOUT PLAN  
DONALD TRUMP SAID HE HAS AGREED TO PURCHASE CROSBY ESTATE'S RESORTS SHARES.  DONALD TRUMP SAID HE HAS AGREED TO PURCHASE CROSBY ESTATE'S RESORTS SHARES  
BSN <BSN> SHARE SALE ADVANCES. BSN Corp said its agreement to sell 1,750,000 new common shares, or a 25 pct interest, to 31 unaffiliated European institutional investors for 30.4 mln dlrs has become definitive. The company said closing is expected shortly after the filing of a registration statement with the Securities and Exchange Commission, which is expected to be made this month.  
GENCORP<GY> UNIT TO SELL LOS ANGELES TV STATION. Gencorp said its RKO General subsidiary agreed to sell KHJ-TV in Los Angeles to Walt Disney Co <DIS> for 217 mln dlrs cash plus working capital and other adjustments at closing. The company said under the agreement in principle, RKO's application to renew the station's broadcast license would be dismissed and the competing application of Fidelity Television would be granted. Disney would then acquire privately held Fidelity for about 103 mln dlrs and other adjustments. Renewal of the KHJ-TV license has been challenged in regulatory proceedings for more than 20 years. The deal is subject to prior approval by the Federal Communications Commission, the company said. Late in 1985, Gencorp cut a deal with Fidelity, a Los Angeles investor group, and Westinghouse Electric Corp <WX> to settle the license proceedings and sell KHJ-TV for 313 mln dlrs, 70 pct of which would go to Westinghouse and the remainder to Fidelity. But on Jan 28, 1987, Westinghouse withdrew from the deal because the FCC would not approve it. In early 1986, Gencorp and RKO agreed to sell WOR-TV in Secaucus, N.J., to MCA Inc <MCA> for 387 mln dlrs. The FCC has approved the transaction, but several parties have appealed. The FCC has not said when it would rule on the appeals, according to a spokemsan for Akron, Ohio-based Gencorp. Fidelity Television originally filed a competing application for the RKO license for KHJ, an independent station, in 1965. In 1980, the FCC disqualified RKO as licensee of WNAC-TV in Boston, citing anti-competitive trade practices and inaccurate financial reporting to the agency, causing renewals previously granted to RKO in New York, for WOR, and Los Angeles, for KHJ, to be denied.  
IMATRON <IMAT> SELLS STAKE TO MITSUI <MITSY>. Imatron Inc said Mitsui and Co Ltd of Japan has purchased a two mln dlr equity interest in Imatron at market price and was granted a 120-day option to make another two mln dlr investment at the same price. Imatron said Mitsui, the exclusive importer of Imatron's Ultrafast computed tomography scanners into Japan, is scheduled to take delivery of its first scanner next month for installation in a large cardiology center. It said it has entered into preliminary discussions with Mitsui on the formation of a joint venture to finance the accelerated development of Imatron's technology and its commercialization in Japan.  
CONTROL DATA <CDA> TO BUY PERIPHERALS STAKE. Control Data Corp said it agreed to acquire Unisys Inc's <UIS> 13 pct stake in <Magnetic Peripherals Inc>. The letter of intent provides that Unisys converts from an owner in Magnetic Peripherals to a customer of Control Data's data storage products group over a two year period. Under the agreement, Control Data will continue to furnish disk drives to Unisys, it said. No other details of the proposed agreement were available. Magnetic Controls, managed by the data storage products group of Control Data, was founded in 1975 as a joint venture to maintain a technological base in data storage, and supply peripheral equipment for the computer systems of its owners. The venture has become a developer and manufacturer of high performance, high-capacity data storage products sold by Control Data to computer systems manafacturers worldwide, it said. After conversion of the Unisys interest, Control Data will own 80 pct, Honeywell Inc <HON>, 14 pct and Bull S.A. of France, six pct, it said.  
DONALD TRUMP TO BUY CROSBY RESORTS <RTB> STOCK. Casino hotel operator and real estate developer Donald Trump said he has agreed to purchase the Class B common stock of Resorts International Inc held by the family and estate of late Resorts chairman James Crosby for 135 dlrs per share. Trump said he is also considering a tender offer for remaining Class B shares at the same price but has no interest in Resorts' Class A shares. Trump said the shares he has agreed already to buy represent a 78 pct interest in the Class B stock. The estate itself owns 340,783 of the 752,297 Class B shares. There are also about 6,432,000 Class A shares outstanding, but Trump said "I have no interest in the Class A shares." Each Class B share has 100 times the voting power of a Class A share. In Atlantic City, Resorts said in a statement that the Class B shares being sold to Trump represents 73 pct of the combined voting power in Resorts. It said closing is dependent on receipt of necessary regulatory approvals and other matters, and after closing, Trump will tender for remaining Class B shares at the same price.  
USAIR <U> WINS COURT ORDER AGAINST TWA <TWA>. USAir Group Inc said a U.S. District Court in Pittsburgh issued a temporary restraining order to prevent Trans World Airlines Inc from buying additional USAir shares. USAir said the order was issued in response to its suit, charging TWA chairman Carl Icahn and TWA violated federal laws and made misleading statements. TWA last week said it owned 15 pct of USAir's shares. It also offered to buy the company for 52 dlrs a share cash or 1.4 billion dlrs. More  
GREASE MONKEY <GMHC> GETS, REJECTS MERGER OFFER. Grease Monkey Holding Corp said it has received and rejected an unsolicited merger offer from Jiffy Lube International Inc <LUBE>. The company said the proposal involved an exchange of Grease Monkey common stock for a combination of Jiffy Lube securities with an estimated current value substantially below Grease Monkey's current market price. It said it will not disclosed details.  
CHRYSLER <C> IN DEAL TO BUY AMC <AMO>. Chrysler Corp said it agreed in principle with French state-owned Renault to acquire American Motors Corp., in which Renault is controlling shareholder, under a deal in which AMC stockholders other than Renault would receive Chrysler common stock with a market value of four dlrs for each AMC common share they hold. Chrysler said the letter of intent for the deal, which needs government and AMC shareholder and board approval, provides that AMC holders will receive not more than .0840 or less than .0687 of a share of Chrysler common for each share of AMC common they hold. more  
DIXIE YARNS <DXYN> TO ACQUIRE TI-CARO INC. Dixie Yarns Inc and <TI-CARO Inc> jointly said they signed a merger agreement calling for Dixie to acquire all TI-CARO's stock in exchange for three mln of Dixie's common. The companies said the previously announced merger has been approved by TI-CARO's board and is expected to close by early April. They said the revenues of the combined companies will be over 600 mln dlrs, and Dixie said the merger will not dilute its 1987 results. TI-CARO was taken private in 1984 in a management led leveraged buy-out.  
AMC SAYS IT IS "STUDYING" CHRYSLER BUYOUT PROPOSAL AND WILL COMMENT WHEN "APPROPRIATE".  AMC SAYS IT IS "STUDYING" CHRYSLER BUYOUT PROPOSAL AND WILL COMMENT WHEN "APPROPRIATE"  
UNITED AUTO WORKERS UNION SAYS IT SUPPORTS CHRYSLER-AMC MERGER.  UNITED AUTO WORKERS UNION SAYS IT SUPPORTS CHRYSLER-AMC MERGER  
NORCROS BREAKS OFF MERGER TALKS WITH WILLIAMS. Norcros <NCRO.L> Plc said it has no intention of proceeding any further with talks on Williams Holdings Plc's suggestion that there would be benefits arising from a merger between the two groups. Norcros said any such benefits could be achieved through normal trading and did not warrant a closer formal association. Norcros shares firmed 30p to 342p after the news on investor speculation of a possible hostile bid from Williams, dealers said. Williams rose 2p to 742. Williams earlier informed Norcros that it holds some 2,890,000 of its ordinary shares or 2.2 pct of those issued.  
AMC <AMO> STUDYING CHRYSLER <C> PROPOSAL. American Motors Corp said it is studying a proposed merger with Chrysler Corp. American Motors said it received a letter from Chrysler Corp "advising us of their proposal to enter into a merger transaction with American Motors Corp." In a brief statement, the company said, "We are studying the proposal. We will have further comment when it is appropriate."  
WALL STREET STOCKS/AMERICAN EXPRESS <AXP>. American Express Co's stock fell sharply, reflecting, in part, investors' disappointment that the company did not make an announcement about its plans for brokerage unit Shearson Lehman Brothers, traders said. The company has said it is studying options for its Shearson unit. Traders said many investors anticipated an announcement this weekend that it would spin off Shearson Lehman. Also, they said, a flurry of arbitrage related sell programs that pounded the general market today accelerated the selloff of American Express, a component of the Dow Industrial Average. American Express fell 3-1/8 to 77-3/8. "It was part programs and part that there was anticipation of an announcement of a spinoff or something with Shearson this weekend, and that announcement never happened," one trader said. In the last few minutes of trading on Friday, another trader said, the stock jumped to close up 3-3/8, largely on anticipation that the company would make a weekend announcement.  
UAW SAYS IT BACK CHRYSLER <C>, AMC <AMO> MERGER. The United Auto Workers <UAW> union said it supports Chrysler Corp's proposal to buy American Motors Corp as creating "a good match that potentially points the way to a more secure future for workers at both companies." "We believe our members' interests can be well served within the Chrysler family, and we are committed to making that happen," UAW president Owen Bieber and vice president Marc Stepp said in a statement. "We believe Chrysler's purchase is a logical and sound step for all concerned," the union said. The UAW is negotiating with AMC over the carmaker's demand for economic concessions covering workers at its Wisconsin operations, without which AMC has said it would cease vehicle production at its Kenosha, Wisconsin, assembly plant by 1989.  
TWA <TWA> DECLINES COMMENT ON USAIR <U>. A Transworld Airlines Inc official said the airline has no comment on USAir Group Inc's planned buyout of Piedmont Aviation Inc. TWA, however, has pursued its application with the Department of Transportation for a takeover of USAir, according to Mark Buckstein, TWA general counsel and vice president. TWA filed a revised application today, following the DOT's rejection Friday of an incomplete application filed last week. Earlier USAir said it agreed to buy Piedmont for 69 dlrs cash per share.  
MOODY'S MAY DOWNGRADE PIEDMONT AVIATION <PIE>. Moody's Investors Service Inc said it may downgrade 120 mln dlrs of debt of Piedmont Aviation Inc because of the airline's agreement to be acquired by USAir Group Inc <U>. The rating agency said its review would focus on the effect of the acquisition on Piedmont's financial leverage and its debt-service requirements. Moody's said it is also examining the potential use of the airline's borrowing capacity to finance the merger. Piedmont currently carries Baa-2 preferred stock and Prime-2 commercial paper.  
USAIR <U> AND UNIT REMAIN UNDER MOODY'S REVIEW. Moody's Investors Service Inc said the 212.75 mln dlrs of debt of USAir Group Inc and its USAir Inc unit remain under review for possible downgrade. The rating agency cited USAir Group's proposed acquisition of Piedmont Aviation Inc <PIE>, as well as Trans World Airlines Inc's <TWA> proposed cash merger with USAir. However, the status of TWA's bid for USAir Group is currently uncertain. The U.S. Transportation Department has rejected TWA's application to acquire USAir on deficiency grounds, but TWA has said it will file a revised application, Moody's noted. Under Moody's review for possible downgrade are USAir Group's Baa-1 senior debt and Baa-2 subordinated debentures, along with the USAir unit's A-3 senior debt and Baa-1 subordinated debentures. Moody's said it would examine the effects of the proposed mergers on USAir Group's financial measurements, as well as potential damage to the company's financial flexibility because of the probability of increased debt-service requirements.  
COURT REJECTS BUITONI APPEAL OVER IRI FOOD UNIT. An appeal by Buitoni SpA against a court ruling that an accord under which it was to acquire Italian state food firm SME - Societa Meridionale Finanziaria was not contractually binding has been rejected, court officials said. An appeal court rejected Buitoni's claim that the 497 billion lire accord with the state industrial company IRI - Istituto per la Ricostruzione Industriale was a binding contract. The decision upholds a court ruling of last July. Buitoni is controlled by CIR - Compagnie Industriali Riunite, an investment company itself controlled by Ing C Olivetti EC SpA (OLIV.MI> chairman Carlo De Benedetti.  
ALLEGHENY <AG> AIMS TO DIVEST MORE BUSINESSES. Allegheny International Inc, the consumer products concern that today announced a merger agreement with a First Boston Corp <FBC> affiliate in a deal worth about 500 mln dlrs, said it intends to divest more units as a way to increase profits. "We're going to reduce AI to a size consistent with our financial resources," said Chairman Oliver S. Travers. "We have made a conscious, strategic choice to become a smaller, financially sound, consumer products company which operates predominantly in the stable political and economic environment of North America," he said.   
ADVANCED TOBACCO <ATPI> MERGER TALKS END. Advanced Tobacco Products Inc said it has ended talks on being acquired by Sterling Drug Inc <STY> but has resumed acquisition talks with other parties. The company had previously announced that a "major U.S. based company" that it did not identify was evaluating its nicotine technology. Advanced said Sterling's board has decided not to enter the nicotine product market. It said it received a 200,000 dlr payment to deal exclusively with Sterling through March Six. Advanced said it had suspended merger talks with other parties as a result of the exclusivity agreement.  
T.H.E. FITNESS <RFIT> BUYS LIVINGWELL UNIT. T.H.E. Fitness INc said it agreed to buy Livingwell Inc's manufacturing unit, Powercise INternational Inc, for 11.0 mln T.H.E. Fitness shares valued at about 30 mln dlrs. This acquisition includes all of Livingwell's rights to its recently announced Powercise fitness equipment. IN a separate transaction, Livingwell INc, an operator of 300 health clubs, placed a six mln dlrs order with Powercise INternational to install the Powercise equipment in all of its clubs.  
BANKAMERICA <BAC> COMPLETES MORTGAGE UNIT SALE. BankAmerica Corp's Bank of America unit said it completed the previously announced sale of BankAmerica Finance Ltd to <Bank of Ireland> for an expected pre-tax gain of 23 mln dlrs. BankAmerica Finance provides residential mortgages in south east England. Its total assets at the end of 1986 were about 1.2 mln dlrs.  
SUPERMARKETS GENERAL GETS UNSOLICITED BID FOR 41.75 DLRS/SHR CASH.  SUPERMARKETS GENERAL GETS UNSOLICITED BID FOR 41.75 DLRS/SHR CASH  
WALL STREET STOCKS/CHRYSLER <C>, AMC <AMO>. The proposed 757 mln dlr deal under which Chrysler Corp would acquire American Motors Corp was described by analysts as a reasonable deal for both companies. Ronald Glantz of Montgomery Securities said AMC common stock could be fairly valued at "just under five dlrs a share" given changes brought by tax reform and that Chrysler's offer to pay four dlrs a share of Chrysler stock to AMC holders other than Renault as a "a good price for Chrysler. AMC common shares opened at four dlrs this morning after the Renault-Chrysler announcement, up 3/8, while Chrysler shares lost 1/4 to 52-1/4. Though AMC issued a statement saying that it was studying the proposed buyout and had no other comment, Glantz said he regarded the proposal as a "done deal" because "I can't believe anybody else would make a bid." "It's a reasonable deal for both sides," the analyst told Reuters. "Chrysler gets the jeep franchise and the (new AMC) Bramalea, Ontario, plant and the (new Renault) Premier (mid-sized car) and AMC's sales will go up because buyers will have more confidence that the manufacturer will still be around to service the products," Glantz said. Analyst Thomas O'Grady said Chrysler would be getting more manufacturing capacity, including a brand-new plant in Canada, for a bargain price and Renault would be getting some return after its prolonged loss-making investment in AMC.  
SUPERMARKETS GENERAL <SGL> GETS UNSOLICITED BID. Supermarkets General Corp said it received an unsolicited proposal from a third party to acquire the company at 41.75 dlrs per share in cash. Supermarkets also said it retained Shearson Lehman Brothers Inc to advise its board of directors on the proposal. Supermarkets General currently has about 38.5 mln shares outstanding. Its stock is currently trading at 34-1/4 on the New York Stock Exchange. The Woodbridge, N.J., supermarket operator of over 180 supermarkets and other specialty retail stores, convenience food stores and drug stores. For the nine months ended November 30, Supermarkets reported net income of 41.7 mln dlrs.  
<SHARON STEEL CORP> EXTENDS EXCHANGE OFFER. Sharon Steel Corp said it extended from March six to March 31 the expiration date for its debt exchange offer to allow time to complete the sale of its Mueller Brass Co unit and to meet other conditions of the offer. The exchange offer covers Sharon's outstanding 13.5 pct subordinated sinking fund debentures due 2000 and its 14.25 pct subordinated sinking fund debentures due 1990. Sharon said that as of March six, 31.6 pct of the 13.5 pct notes and 20.9 pct of the 14.25 pct notes were tendered. The Mueller sale is conditioned on receipt of 80 pct of the notes.  
INVESTORS HAVE 5.5 PCT OF DATAREX SYSTEMS <DRX>. A small investor group led by Melvyn Gelch, a Providence, R.I., surgeon, told the Securities and Exchange Commission it has acquired 60,840 shares of Datarex Systems Inc, or 5.5 pct of the total outstanding common stock. The Gelch group said it bought the stake for about 935,000 dlrs for investment purposes only.  
INVESTOR HAS TECHNOLOGY DEVELOPMENT <TDCX> STAKE. Leon Greenblatt, a Chicago investor, told the Securities and Exchange Commission he has acquired 89,450 shares of Technology Development Corp, or 5.3 pct of the total outstanding common stock. Greenblatt said he bought the stock for 350,000 dlrs soley as an investment and has no intention of seeking control of the company.  
ANALYST SAYS DART GROUP LIKELY BIDDER FOR SUPERMARKETS GENERAL.  ANALYST SAYS DART GROUP LIKELY BIDDER FOR SUPERMARKETS GENERAL  
HARRIS CUTS CYCLOPS <CYL> STAKE TO 11.1 PCT. Harris Associates L.P., a Chicago investment advisory firm, said it cut its stake in Cyclops Corp to 437,425 shares, or 11.1 pct of the total outstanding common stock, from 524,775 shares, or 13.3 pct. In a filing with the Securities and Exchange Commission, Harris said it sold 87,350 Cyclops common shares between Jan 6 and March 2 at prices ranging from 65.75 to 91.00 dlrs a share. Harris said its dealings in Cyclops common stock were made on behalf of its advisory clients.  
CHRYSLER <C> VALUES AMC <AMO> AT 757 MLN DLRS. Chrysler Corp said it valued its proposed buyout of American Motors Corp at 757 mln dlrs, not counting the effect of a contingent payment that could reach 350 mln dlrs based on AMC's future profits. A Chrysler spokesman told Reuters that the letter of intent signed with Renault, AMC's controlling shareholder with a 46.2 pct direct stake, includes a provision for Renault to be paid 35 mln dlrs in cash for AMC's finance subsidiary and 200 mln dlrs in the form of an eight pct note. He said he did not know the maturity of the note.  
GRANDVIEW ACQUIRES CONTROL OF U.K. TICKET GROUP. Consolidated Grandview Inc said it acquired a 60 pct stake in <All Ticket Group PLC>, of London, for undisclosed terms. The seller was also undisclosed. All Ticket is a special events travel company with exclusive European rights to UAL Inc <UAL>'s United Airlines Apollo system, booking all United Airlines flights in Britain and Europe. All Ticket and its subsidiaries will also co-sponsor various events this year including the British Open golf tournament and rowing's Henley Regatta. Its 1986 revenues totaled 12 mln Canadian dlrs.  
UNITED CITIES <UCIT> MAKES ACQUISITION. United Cities Gas Co said it has acquired Lyle Propane Gas Co, a Cairo, Ga., propane gas distributor, for undisclosed terms. It said Lyle has sales of about four mln gallons annually and serves about 4,000 customers in seven counties in southwest Georgia and north Florida.  
TALKING POINT/CAESARS WORLD <CAW>. <MTS Acquisition Corp's> 28-dlr-per-share offering price for Caesars World Inc is thought to be much too low and is likely to attract other suitors for the hotel/casino company, industry analysts said. "I think someone else will probably come in, or they (MTS) will have to raise their bid," said Marvin Roffman, an analyst at Janney Montgomery Scott Inc. MTS, a company formed by Martin Sosnoff, Caesars World's largest shareholder, today began a tender offer, valued at 725.2 mln dlrs, for all shares Sosnoff doesn't already own. "I think the offer is too low by at least five points," said Roffman, who described Caesars World as the operator of "one of the finest casinos in the world." Sosnoff, a New York investor, already owns 13.3 pct of Caesars World's 30.3 mln shares. Following news of the tender offer Caesars World's shares were trading at 27-7/8, up 3-3/8. A Caesars World spokesman said the company was declining comment on the Sosnoff move for the moment, but Caesars may issue a public statement after it has studied the offer. Roffman said Caesars World has considerable growth potential and he is forecasting fiscal 1988 earnings of two dlrs per share. Caesars World owns casino hotels in Nevada and honeymoon resorts in Pennsylvania's Pocono Mountains. It also controls Caesars New Jersey Inc <CJN>, which owns an Atlantic City, N.J., casino hotel. For its fiscal year ended July 31 Caesars World reported net income of 41 mln dlrs, or 1.36 dlrs per primary share. The company reported second quarter net income of 12.6 mln dlrs, or 41 cts per share, compared with income of 7.5 mln dlrs, or 25 cts per share a year earlier. Daniel Lee, an analyst at Drexel Burnham Lambert Inc, said that although Sosnoff's relatively low bid may attract other suitors willing to pay a higher price for Caesars, there is little likelihood that a competing bid would start a battle for the company.     
ALLEGHENY <AG> OFFICERS TO RUN COMPANY. Allegheny International Inc said its chairman and chief operating officer will remain in their positions following the merger of the company with an affiliate of First Boston Corp. "It is expected that Oliver S. Travers will continue as chairman, president and Chief executive officer, and Thomas J. Albani will continue as chief operating officer," said an Allegheny spokesman. Allegheny today said it agreed to a buyout from First Boston at 24.60 dlrs per share. The transaction was valued at 500 mln dlrs. Its stock rose 8-5/8 to 24 in active trading.  
IC GAS MAKES NO RECOMMENDATION ON TRACTEBEL OFFER. Imperial Continental Gas Association <ICGS.L>, IC Gas, said its board is not making a recommendation on the partial tender offfer at 710p per share announced by <Tractebel SA> and <Groupe Bruxelles Lambert SA>. At the same time, however, the board would not recommend a general offer for all the shares at a price of 710p, the statement added. Shareholders wondering whether to tender either to the Tractebel consortium or to the rival 700p per share partial offer from <SHV Holdings NV> should consult professional advisers.  
NAT'L HEALTHCARE <NHCI> TO SELL FIVE HOSPITALS. National Heathcare Inc said it signed an agreement to sell five rural hospitals to a private corporation for about 18 mln dlrs, including the assumption of six mln dlrs of debt. The company said it plans to complete the sales, which are subject to various regulatory approvals, by the end of July. National Healthcare said it expects no material gain on loss on the sales and that substantially all proceeds will be used to reduce debt.  
READING <RDGC> TO SELL PHILADELPHIA PROPERTIES. Reading Co said it has agreed in principle to convey properties it owns in and around the Philadelphia Convention Center site to the city of Philadelphia and the Philadelphia Convention Center Authority. It said in exchange it will receive about 23 mln dlrs in cash, rights to acquire 22 acres adjacent to the Philadelphia International Airport and an option to acquire the development rights over the Gallery II shopping mall on Market Street in downtown Philadelphia. Reading said it will be responsible for the demolition and cleanup of certain of the properties, for which a portion of the cash proceeds will be escrowed. The company said it will continue to own and operate the Reading Terminal Market in Philadelphia. The land it is giving up amounts to about seven acrease and includes part of the Reading Terminal Train Shed, it said.  
MONTEDISON ACQUIRES ARCO RESEARCH UNIT. Montedison SpA <MONI.MI> has acquired a 70 pct stake in <Plant Cell Research Institute - PCRI> of California from Atlantic Richfield Co <ARC.N> for "several tens of millions of dollars," a senior Montedison executive said. Renato Ugo, a member of Montedison's management committee, told reporters that <Stanford Research Institute International> of Menlo Park, California, had acted as a partner in the purchase, itself acquiring a stake in PCRI of under 10 pct. PCRI, based in Dublin, California has a biotechnology research laboratory. Ugo said the price paid included outlays for the laboratory technology and staff. He said other negotiations were under way with biotechnology companies in the health care and diagnostics sectors through Montedison's health care subsidiary <Erbamont NV>, but gave no details. "We hope they will be concluded by the year end," he said. Montedison currently invests around 30 billion lire a year in biotechnology research and expects to increase this figure to around 50 billion lire in the next few years.  
MATHEMATICAL APPLICATIONS SETS OPERATIONS SALE. Mathematical Applications Group Inc said it has signed a letter of intent to sell all of its operating business and will propose a plan of liquidation following the sale. If the company is unsuccessful in obtaining the approvals needed for the sale and liquidation, it said, the company may be required to initiate reorganization proceedings under federal bankruptcy law to facilitie the distribution of its assets. Mathematical Applications said it tentatively agreed to sell its direct marketing business to Pagex Inc for 400,000 dlrs plus an amount equal to the working capital of the business at closing as well as a 1.7 mln dlr note payable in installments over six years. Mathematical Applications said the business' working capital is estimated to be about 600,000 dlrs. Pagex has been formed by Paul A. Goldner the owner of Pagex Systems Inc, which is also engaged in the direct marketing computer service business. Mathematical Applications said the tentative agreement calls for Pagex to buy substantially all of the assets and liabilities related to the direct marketing business and continue to use the Mathematical Applications name. It said the sale is also subject to renegotiation of a real estate lease and approval of a definitive agreement by the company's board, stock holders and debenture holders. The company said it has obtained waivers from holders of its six mln dlrs principal amount of debentures due March 31, 1993, to defer interest payments aggregating 270,000 dlrs through March 31, 1987. The company said it will seek waivers to defer these interest payments, and those due March 31, for enough time to enable the company to accomplish the proposed sale of its operations. Mathematical Applications said it is talking to debenture holders, its landlord, a lessor of equipment to the marketing operation and holders of other liabilities not being assumed by Pagex to arrange distribution of assets after the proposed sale, adding that these assets will be significantly less than its liabilities. The company said it has obtained waivers from holders of its six mln dlrs principal amount of debentures due March 31, 1993, to defer interest payments aggregating 270,000 dlrs through March 31, 1987. The company said it will seek waivers to defer these payments, and those due March 31, for enough time to accomplish the proposed sale of its operations. Mathematical Applications said it is talking to debenture holders, its landlord, a lessor of equipment to the marketing operation and holders of liabilities Pages is not assuming to arrange distribution of assets after the proposed sale, adding these assets will be significantly less than its liabilities. As part of the distribution of assets, the company said, it expects shareholders to receive an amount based on the bid price of the company's stock, which was 1/16 on March five.  
FINANCIAL CORP <FIN> UNIT COMPLETES PURCHASE. Financial Corp of America's American Savings and Loan Association said it completed the previously announced purchase of 16 retail savings branches from Great Western Financial Corp's <GWF> Great Western Savings. American Savings said the purchases boost its deposits by about 550 mln dlrs, but do not affect its asset base.  
JOHNSON PRODUCTS <JPC> SELLS TWO SUBSIDIARIES. Johnson Products Co Inc said it completed the sale of Debbie's School of Beauty Culture Inc and the assets of Ultra Precise Beauty Boutique Inc to management. It said the sale price of 2,533,000 dlrs consisted of 700,000 dlrs cash, a secured promissory note for 1,506,000 dlrs and the forgiveness of a debt of 327,000 dlrs owed by Johnson Products to Debbie's School.  
USAIR <U> SEEKS TWO BILLION LOAN FOR TAKEOVERS. USAir Group Inc said it seeking two billion dlrs in bank debt to complete its takeover of Piedmont Aviation Inc <PIE> and its pending acquisition of PS Group Inc's Pacific Southwest Airlines. In a filing with the Securities and Exchange Commission that details its proposed 69 dlr a share cash tender offer for Piedmont, USAir said Manufacturers Hanover Trust Co <MHC> "indicates its willingness" in a March 6 letter to provide up to 500 mln dlrs of the financing. Manufacturers Hanover would also to act as agent for a bank group to raise the rest of the financing, USAir said. USAir said a Manufacturers Hanover affiliate is currently agent for its 400 mln dlrs revelving credit facility, which would be replaced by the proposed two billion dlr financing. USAir put its total cost of completing the tender offer at 1.7 billion dlrs. Its Pacific Southwest takeover, which has received federal approval and is due to come up for shareholder approval later this month, is for 17 dlrs a share, or 400 mln dlrs total. USAir said it has already bought 2.3 mln Piedmont common shares, or 9.9 pct of the total outstanding from Norfolk Southern Corp <NSC> for 161.9 mln dlrs. The tender offer, which is being made through a USAir subsidiary, USAG Acquisition Corp, would not be valid unless USAir is left with more than half of Piedmont's total outstanding common stock after the April 3 expiration. While negotiations on terms and interest rates of its bank loans are not yet complete, USAir said it expects them to be in the form of a one billion dlr two-year term loan and a one billion dlr seven-year revolving credit facility. The company said it expects to repay the two-year loan through equity, preferred and debt offerings and possibly internal funds and the sale and/or leaseback of aircraft.  
JANNOCK ACQUIRES 50 PCT OF INTERCON SECURITY. <Jannock Ltd> said it acquired a 50 pct interest in Intercon Security Ltd for five mln dlrs and Intercon founders Brian Legge and Richard Grange will hold the remaining 50 pct and will continue to manage the company. Intercon Security, employing 850 people, provides a full range of security equipment and services, Jannock said.  
DART GROUP SAID IT OFFERS TO BUY SUPERMARKETS GENERAL AT 41.75 DLRS/SHR.  DART GROUP SAID IT OFFERS TO BUY SUPERMARKETS GENERAL AT 41.75 DLRS/SHR  
BCI HOLDINGS TO SELL BOTTLED WATER DIVISION. <BCI Holdings Corp>  said its <Beatrice U.S. Food Corp> retained Shearson Lehman Brothers Inc to assist in the sale of its national bottled water business. It said products of the subsidiary, based in Monterey Park, Calif., are sold under the Arrowhead brand name in California and Arizona, the Ozarka name in Texas and the Great Bear name in 11 northeastern states.  
DART <DARTA> MAKES OFFER FOR SUPERMARKETS <SGL>. Dart Group Corp said it offered to buy Supermarkets General Corp for 41.75 dlrs per share in cash. Earlier Supermarkets General said an "unsolicited third party" had made the offer. Analysts estimated the value at about 1.6 billion dlrs, based on 38.5 mln shares outstanding. Kidder, Peabody and Co Inc told Dart that Kidder's affiliate will be prepared to advance up to 750 mln dlrs on a subordinated basis.    
CAESARS WORLD <CAW> BID VALUED AT 907 MLN DLRS. MTS Acquisition Corp said it will need about 907 mln dlrs to acquire the 31,781,461 Caesars World Inc shares not owned by its owner, Martin T. Sosnoff. The estimate came in MTS Acquisition's proxy statement to Caesars World shareholders describing its offer of 28 dlrs a share for their stock which was announced this morning. In that announcement, MTS Acquisition said its bank and investor bankers felt they could provide financing totaling 975 mln dlrs for the offer. Sosnoff is Caesars World's largest shareholders with 4,217,675 of the company's shares. That is about 11.7 pct of the outstanding stock on a fully diluted basis, the proxy said. Besides being the sole owner of MTS Acquisition, Sosnoff owns 61 pct of Atalanta/Sosnoff Capital Corp's <ATL> stock and is chairman of that investment management and brokerage firm.  
BUSINESS EDITOR THEODORE CROSS OFFERS 34 DLRS SHARE FOR HARPER AND ROW.  BUSINESS EDITOR THEODORE CROSS OFFERS 34 DLRS SHARE FOR HARPER AND ROW  
BUSINESS EDITOR OFFERS 34 DLRS FOR HARPER <HPR>. Theodore Cross, editor of Business and Society Review, a business publication, said an investor group he heads has offered to buy Harper and Row Publishers Inc for 34 dlrs a share cash. In a filing with the Securities and Exchange Commission, Cross said he proposed the takeover to the board of the New York publishing house today. Cross, whose investor group includes his wife, Mary, said they already hold 261,650 Harper and Row common shares, or 6.0 pct of the total outstanding common stock. They said they have spent 3.5 mln dlrs on their stake so far. Cross said he proposed in a letter to Harper and Row that the company be merged into a company Cross is forming. Suggesting that the total cost of completing the merger would be 190 mln dlrs, Cross said he would use 20 mln dlrs of his own money for the deal and up to 170 mln dlrs which would be borrowed from the First National Bank of Boston under a revolving credit facility the bank has agreed to provide.   
SENSORMATIC <SNSR> UPS CHECKROBOT <CKRB> STAKE. Sensormatic Electronics Corp said it upped its investment in CheckRobot Inc in the form of 2.5 mln dlrs of convertible preferred stock, raising its stake in CheckRobot to 42 pct from 37 pct on a fully diluted basis.  
VIACOM <VIA>, NAT'L AMUSEMENTS SEEK FAST MERGER. The chiefs of Viacom International Inc and <National Amusements Inc> said they met and agreed to work together to complete the previously announced merger of the two companies "as expeditiously as possible." A spokeswoman for Viacom declined to say if the executives had set a timetable for closing the deal. Viacom last week agreed to be acquired by National Amusements for a combination of cash and stock with an estimated value of 53 dlrs a share, or a total of about 3.4 billion dlrs.  
NORANDA TO SPIN OFF FOREST INTERESTS INTO SEPARATE COMPANY.  NORANDA TO SPIN OFF FOREST INTERESTS INTO SEPARATE COMPANY  
NATIONAL DISTILLERS <DR> CLOSES ALMADEN SALE. National Distillers and Chemical Corp said it completed the sale of Almaden Vineyards Inc to Heublein Inc for about 128 mln dlrs. Heublein, a former subsidiary of RJR Nabisco Inc <RJR>, was recently acquired by <Grand Metropolitan PLC>. Almaden, based in San Jose, Calif., makes and sells table wines, champagnes and brandies as well as some premium wines under the Charles Lefranc Cellars label.  
CEASARS WORLD SAYS IT IS STUDYING UNSOLICITED 28 DLR-PER-SHR OFFER BY MARTIN SOSNOFF.  CEASARS WORLD SAYS IT IS STUDYING UNSOLICITED 28 DLR-PER-SHR OFFER BY MARTIN SOSNOFF  
CANADA MULLING SELLING PETRO-CANADA - MULRONEY. Prime Minister Brian Mulroney said the government was considering selling Petro-Canada and the sale would proceed if it were in the national interest to do so. Mulroney told the House of Commons assets of the huge oil company would be examined before a decision was made, just as other state-run companies were studied before being sold under Ottawa's privatization program. "The government is going to examine assets of this nature to ascertain if they continue to play an appropriate role in public policy and we will make a determination as we have in other cases," Mulroney told the daily question period. Asked by opposition members to clairify Finance Minister Michael Wilson's statement on Friday that Petro-Canada no longer has any pubilic policy role, Mulroney said his government has long promised to sell off companies that could be better run by the private sector. Outside the House, Energy Minister Marcel Masse said Petro-Canada would be worth between three and four billion dlrs and, because of the size, could be difficult to sell. He also said he would prefer to see Canadians participating in any privatization, but would not give any details on timing of a sale.  
NEWS CORP <NWS> COMPLETES PURCHASE OF NEWSPAPER. The News Corp said the South China Morning Post Ltd of Hong Kong become a wholly-owned subsidiary March 7 as previously announced.  
RICHMOND HILL<RICH>, RIVERHEAD END MERGER TALKS. Richmond Hill Savings Bank and <Riverhead Savings Bank FSB> said they terminated their previously announced merger negotiations. The banks gave no reason for ending the talks, which began on January 14.  
CEASARS WORLD <CAW> STUDYING SOSNOFF OFFER. Ceasars Wold Inc said its board is studying the unsolicited and conditional tender offer for all its common shares at 28 dlrs per share from Martin T. Sosnoff. A company spokesman said the board expects to make a recommendation "shortly", but could not specify a time period. Ceasars World Chairman Henry Gluck in a statement urged shareholders not to take any action with respect to the offer prior to the board's recommendation. Sosnoff made the offer directly to shareholders in a newspaper advertisement through a company he formed, called MTS Acquisition Corp. It expires April 3.  
UNITED SECURITY <UNSE> TO BUY ROBERT BROWN UNIT. United Security Financial Corp of Illinois said it has signed a letter of intent to buy Robert Co. Brown and Co Inc's <RCBI> MAGIC Insurance Group unit. Robert C. Brown and Co would receive newly issued United Security stock. United Security said it is anticipated that such stock would represent a substantial majority of the shares outstanding after the merger. United Security's principal subsidiary is United Security Life Insurance Co of Illinois. The MAGIC Group owns Pilgrim Life Insurance Co of America and Middle Atlantic Life Insurance Co.  
WARRINGTON SELLS SHOE DIVISIONS. (Warrington Inc) said it sold its shoe divisions to Montreal-based (Taurus Footwear Inc) for undisclosed terms. The divisions manufacture and distribute Greb, Hush Puppies, Kodiak, and Santana brand shoes and had revenues of about 69 mln dlrs last year, Warrington said. It said the sale of the shoe divisions and the previous sale of its ski boot businesses will result in an unspecified net gain. Warrington said it plans to concentrate on its Canstar Sports Group Inc skate and athletic footwear division, the largest ice skate manufacturer and distributor in the Western world. Warrington said it decided to rationalize the balance of its ski businesses, which is expected to result in a divestment loss which could outweigh the net gains on the sales of its shoe and ski boot divisions. Taurus said the acquisition is expected to increase its annual sales to about 100 mln dlrs and make it Canada's largest footwear manufacturer.  
GROUP SEEKS PRIME MEDICAL <PMSI> HOLDER LIST. A group of investment firms led by Far Hills, N.J., investor Natalie Koether said it is seeking information about the shareholders of Prime Medical Services Inc, over which it has said it is seeking control. In a filing with the Securities and Exchange Commission, the group, which includes Shamrock Associates, included a March 6 letter to Prime which asks for a complete list of all shareholders and their addresses. The group said it wants the information so it can contact shareholders on issues, including election of an opposition slate of directors to the board and other proxy contests. The Koether group's letter gives the company five days to respond to its request. If there is no response from Prime Medical, the group said it would consider the demand refused and would take "other proper steps" to get the information. The group said it already holds 1,483,886 Prime Medical shares, or 17.5 pct of the total. It said it has taken legal action to try to force the company to set an annual meeting and require all directors to stand for election. In a previous SEC filing, the group has said it has decided to try to seek control of Prime Medical through a tender offer, exchange offer, proxy contest or other ways.  
<GRAND METROPOLITAN PLC> UNIT TO SELL BUSINESS. Grand Metropolitan PLC said its Grandmet USA Inc unit decided to sell its physical fitness and exercise equipment business. The company said Morgan Stanely and Co Inc is advising it on the sale of the business.  
CHRYSLER <C> AMC BUYOUT VALUED AT 1.55 BILLION. Chrysler Corp's proposed acquisition of American Motors Corp is valued at about 1.55 billion dlrs, including the cost of acquisition and the 767 mln dlrs in American Motor' debt that Chrysler will assume, analysts said. They said Chrysler's cost of acquisition was valued at  782 mln dlrs, paid in cash, notes and Chrysler shares. The analysts told Reuters that at a New York briefing Chrysler treasurer Fred Zuckerman outlined his company's agreement with Renault to assume AMC's debt as well as 332 mln dlrs in unfunded pension liabilities, though the latter is not included valuing the transaction. Analysts were generally positive on Chrysler's proposed purchase of its much-smaller rival, but said they expected the transaction would carry with it a short-term dilution in Chrysler's earnings. A Chrysler financial source, speaking anonymously, told Reuters that the proposed purchase price was smaller than it would have been had a deal been struck last year because the impact of the new U.S. tax law removes Chrysler's ability to assume AMC's large reserve of tax-loss carryforwards accumulated from its losses since 1980. "There were very serious discussions last fall but we didn't pull it off," the source said in a reference to the assassination in November of former Renault chairman Georges Besse. "It's too bad because the tax benefits fell on the floor. And Renault could have gotten a much better price if we'd done it before the end of last year." In addition to AMC's debt and its pension liabilities, the source said Chrysler would also assume any liability from lawsuits over the safety of Jeeps, which he called "an overhang to the company." Analysts quoted Chrysler officials as having told them that the deal includes payment to Renault of 200 mln dlrs principal in the form of a 10-year note at eight pct interest, 35 mln dlrs cash for Renault's equity in AMC's finance subsidiary, 25 mln dlrs in cash for "transaction fees" in connection with the acquisition and 522 mln dlrs worth of Chrysler stock to be paid AMC shareholders. "The big number is the 767 mln dlrs in debt assumption," analyst Jack Kirnan of Kidder Peabody and Co told Reuters. Moody's Investors Service Inc said it may downgrade 12 billion dlrs of Chrysler Corp and unit debt due to the deal. But the Chrysler source said that in assuming AMC's liabilities, his company will refinance at a lower rate any AMC debt that is being carried at "non-market" rates. He said there were difficulties in negotiating with the previous Renault management on the acquisition because they were committed to the group's business plan of which AMC was an integral part. "The new management didn't have that problem - AMC wasn't their baby," he said.  
WASHINGTON NAT'L <WNT> BUYS UNITED PRESIDENTIAL. Washington National Corp's Washington National Insurance Co said it bought the remaining 15 pct of United Presidential Corp's <UPCO> outstanding shares at 19 dlrs a share cash. The acquisition of the shares is part of a plan of exchange approved by United Presidential shareholders at a special meeting March 6. The purchase of the remaining United Presidential stake follows Washington National's buying 85 pct of United Presidential in a 19 dlrs a share tender offer which terminated December 12.  
CONAGRA <CAG> COMPLETES MERGER WITH TRIDENT. Conagra Inc said it completed the merger of its Sea-Alaska Products Co unit and <Trident Seafoods Corp.> Conagra said the new company, in which it holds a 45 pct stake, will be called Trident Seafoods Corp. Charles Bundrant, president of Trident before the merger, was named president of the new company, Conagra said. Conagra said it also completed the previously announced acquisition of <Bristol Monarch Corp> and that Trident completed the purchase of the remaining 50 pct stake of <San Juan Seafoods Inc.>  
LINDNER TELLS SEC HE HAS HAD TALKS WITH TAFT ON SEEKING CONTROL OF COMPANY.  LINDNER TELLS SEC HE HAS HAD TALKS WITH TAFT ON SEEKING CONTROL OF COMPANY  
BANCROFT <BCV> FILES SUIT AGAINST ZICO. Bancroft Convertible Fund Inc said it filed a lawsuit in federal court in Newark, N.J., seeking to block a hostile 30 dlr a share takeover offer by <Zico Investment Holdings Inc.> Bancroft said the suit also names Michael B. Javett, principal officer of Zico, and First Fidelity Bancorp's <FFB> First Fidelity Bank unit, the depositary for Zico's offer. Bancroft said the suit also names <Georgeson and Co Inc>, Zico's information agent, and <Luthie Intercontinentale Inc>, a Panamanian corporation. Bancroft said its complaint alleges that Zico's tender offer materials include false and misleading information and that the offer violates the Investment Company Act of 1940. The company said its stockholders approved proposals that will insure that it remains independent.  
LINDNER SAYS HE DISCUSSED CONTROL OF TAFT <TFB>. Financier Carl Lindner, who holds a 16.2 pct stake in Taft Broadcasting Co, told the Securities and Exchange Commission he has discussed with the company the possibility of seeking control of it. Lindner, the Cincinnati, Ohio, investor who controls American Financial Corp, said his talks with some of Taft's managers and directors have been aimed at "achieving an increased ownership position" in the company. Lindner said his increase in ownership would be made either by making an offer to acquire control of Taft or taking part in a group to acquire the company. Lindner, who holds his Taft stake through American Financial and its subsidiaries, said he is also considering buying more Taft stock on the open market or in private deals. He did not say whether the talks with Taft officials led to any agreements or understandings. But Lindner said he intends to review his investment in Taft and may be involved in further talks or take other steps regarding the future control and direction of Taft. Lindner's investor group recently raised its Taft stake to 1,489,298 shares, or 16.2 pct from 1,439,498 shares, or 15.6 pct, after buying 49,800 shares for a total of 5.8 mln dlrs. Although he recently received clearance from the Federal Trade Commission to raise his stake in the company to 24.9 pct, Lindner in previous SEC filings has always stressed that his interest in Taft was for investment only and not was not seeking to control the company. An investor group headed by members of the wealthy Bass family of Fort Worth, Texas, also holds about 24.9 pct of Taft's common stock.  
INVESTORS SET DEADLINE FOR JAPAN FUND <JPN>. An investor group that includes T. Boone Pickens III said it set a deadline of 1600 EST on March 11 for its offer to acquire Japan Fund Inc. The group, which also includes <Sterling Grace Capital Management Inc LP> and <Anglo American Security Fund LP>, said it was willing to deposit in escrow 100,000 Japan Fund shares, worth about two mln dlrs, to insure its ability to obtain financing if Japan Fund approves its offer. The group said Japan Fund has not responded to its offer, worth about 525 mln dlrs at current market prices.  
INVESTOR FIRMS HAVE 25.5 PCT OF SYMBION <SYMB>. A group of affiliated firms led by Warburg, Pincus Capital Co L.P., a New York venture capital and investment partnership, said it has acquired 1,920,527 shares of Symbion Inc, or 25.5 pct of the total outstanding. In a filing with the Securities and Exchange Commission, the Warburg Pincus group said it bought the stake for investment purposes. Although the group said it is considering buying more shares of Symbion, it said it has no plans to seek control of the company.  
OFFSHORE INVESTOR HAS 5.9 PCT OF HAUSERMAN<HASR>. Kindness N.V., a Bahamas-based firm owned by U.K. investor and Bahamas resident John Templeton, said it has acquired 137,900 shares of Hausereman Inc, or 5.9 pct of the total outstanding common stock. In a filing with the Securities and Exchange Commission, Templeton said he bought the shares for investment purposes only and has no intention of seeking control of the company.  
INVESTMENT FIRMS UP STAKE IN MCGILL MFTG <MGLL>. A group of affiliated investment firms led by Bermuda-based Fidelity International Ltd and Boston-based FMR Corp, told the Securities and Exchange Commission it raised its stake in McGill Manufacturing Co Inc. The group said it raised its stake to 88,580 shares, or 6.2 pct of the total outstanding common stock, after buying 14,135 McGill common shares between Jan 19 and March 2 at prices ranging from 33.57 to 34.57 dlrs a share.  
INVESTMENT FIRM RAISES CERTRON <CRTN> STAKE. Louart Corp, a Los Angeles investment firm, said it raised its stake in Certron Corp to 237,000 shares, or 7.8 pct of the total outstanding common stock, from 164,000 shares, or 5.4 pct. In a filing with the Securities and Exchange Commission, Louart said it bought 73,000 Certron shares between Sept 9 and March 6 at a total of 109,315 dlrs a share. It said its dealings in Certron were for investment only, but said it might increase its stake. It said it has no plans to seek control of the company.  
HOGAN SYSTEMS <HOGN> IN ACQUISITION. Hogan Systems Inc said it acquired <Systems 4 Inc> of Durango, Colo., for 1.7 mln dlrs. Hogan said Systems 4 provides integrated applications software and processing services to about 30 community banks. Systems 4 has revenues of 1.5 mln dlrs a year, Hogan said.  
KAUFHOF CONSIDERING TAKING STAKE IN HAPAG-LLOYD. West German retail group Kaufhof AG <KFHG.F> is considering taking a stake in shipping and transport group Hapag-Lloyd AG <HPLG.F> but has yet to reach a final decision, a spokesman said in response to queries. Press reports said Kaufhof wanted a stake of up to 12.5 pct in Hapag-Lloyd. The Kaufhof spokesman noted any decision on purchasing shares in the shipping group would have to be approved by the supervisory board, which is due to hold a meeting tomorrow. Late last year the Gevaert group of Belgium and West Germany's VEBA AG <VEBG.F> said they had each acquired a 12.5 pct stake in Hapag-Lloyd from Deutsche Bank AG <DBKG.F> and Dresdner Bank AG <DRSD.F>. Industry sources estimate Deutsche and Dresdner, Hapag-Lloyd's majority shareholders, held about 75 pct of Hapag-Lloyd's share capital before selling portions of it to Gevaert and VEBA. The two banks have said they eventually wanted to reduce their stake in the shipping group to 15 pct each.  
TESCO ASSOCIATE BUYS 4.2 PCT OF HILLARDS. Tesco Plc <TSCO.L> said that <County Ltd> had yesterday bought on its behalf 2.06 mln shares, or around 4.2 pct, in <Hillards Plc> for between 302p and 310p a share. Tesco yesterday launched a 151.4 mln stg bid for the north of England supermarket chain, which Hillards promptly rejected. Hillards shares were last quoted at 324p, compared with last night's close of 313p.  
QUEENSLAND PRESS BOARD RECOMMENDS MURDOCH OFFER. The <Queensland Press Ltd> (QPL) board said it unanimously recommended the one billion dlr takeover bid by <Cruden Investments Pty Ltd>, a family company of News Corp Ltd <NCPA.S> chief executive Rupert Murdoch. The 23 dlrs a share cash-only offer is nearly double the market price before News announced its now-completed bid for The Herald and Weekly Times Ltd <HWTA.S> in early December and no other offer is likely, it said in a statement. Independent adviser, <Wardley Australia Ltd>, had also concluded the offer was fair and reasonable, it added. QPL is already owned 48.3 pct by HWT.  
NEW WORLD PICTURES <NWP> SELLS TAFT <TFB> STAKE. New World Pictures Ltd said it sold 456,900 shares or about five pct of Taft Broadcasting Co common stock for a gain of 17.8 mln dlrs. The company said in a brief statement that it acquired the stock in late 1986.  It gave no further details and company officials were not immediately available for comment. On Friday, Taft vice chairman Dudley S. Taft and Narragansett Capital Inc <NARR> offered to acquire Taft for 145 dlrs per share.  Dudley Taft and his family have owned 12 pct of the company. An investment group leds by Robert M. Bass, one of the Bass brothers of Fort Worth, Texas, has been reported as owning about 25 pct of Taft stock, and <American Financial Corp> chairman Carl Lindner has been reported to own about 16 pct. Both Bass and Linder have acquired Taft shares in recent months.  
CPC <CPC> TO SELL UNIT TO HI-PORT <HIPT>. CPC International Inc said it has agreed in principle to sell its Peterson/Puritain Inc subsidiary to Hi-Port Industries Inc. CPC said the sale is not expected to have a significant impact on its earnings and is subject to approval by boards of both companies.  Terms were not disclosed. Peterson/Purittan is a contract packager of personal care and household products.  
HUGHES TOOL SAYS IT APPROVES REVISED TERMS FOR MERGER WITH BAKER INTERNATIONAL.  HUGHES TOOL SAYS IT APPROVES REVISED TERMS FOR MERGER WITH BAKER INTERNATIONAL  
QINTEX AGAIN EXTENDS PRINCEVILLE <PVDC> OFFER. <Qintex America Ltd> said it is again extending its offer of 13 dlrs a share for 3.3 mln Princeville Development Corp shares until today from yesterday. At midnight yesterday, 7,242,117 Princeville shares had been tendered, up from 5,887,165 shares 24 hours earlier. Qintex said it is extending the offer to allow Princeville to comply with federal law restricting the ownership of U.S. airlines by non-U.S. citizens and to finalize the terms and conditions of the letter of credit or bank guarantee required under the previously announced acquisition agreement.  
GOODYEAR TIRE TO RECEIVE 588 MLN DLRS FOR GOODYEAR AEROSPACE FROM LORAL CORP.  GOODYEAR TIRE TO RECEIVE 588 MLN DLRS FOR GOODYEAR AEROSPACE FROM LORAL CORP  
HUGHES TOOL <HT> BOARD APPROVES MERGER. Hughes Tool Co said its board voted at a special meeting last night to approve a new agreement with regulators that would allow the company to complete its proposed merger with Baker International Corp <BKO>. The agreement, approved by the U.S. Department of Justice yesterday, will give the merged company, Baker Hughes, six months instead of three to sell certain assets. The pact also allows a three-month extension, if warranted, and limits the obligation of the new company to give financial support to the businesses to be divested, pending their sale. The company said its board recommended that shareholders approve the merger of the oilfield service companies. A previously adjourned meeting of Hughes Tool stockholders will be resumed this afternoon, it said. "Hughes will work with Baker and the Justice Department towards negotiating the final form of the consent decree and filing it as soon as possible," the company said in a statement. Closing of the merger would occur immediately after the filing, it said. The assets to be sold under the consent decree consist of Baker's domestic oilfield drilling bit business and its domestic submersible electric pump business. Baker has an agreement to sell the pump business to Trico Industries Inc <TRO>. The financial terms of the merger are unchanged, a Hughes spokesman said. Under those terms, each Baker common share and Hughes common share would be converted into one share and 8/10 of a share, respectively, of Baker Hughes Inc, which would be formed as a new holding company.  
HANSON TRUST PLC UNIT TO SELL KAISER CEMENT TERMINAL AND PLANT FOR 50 MLN DLRS.  HANSON TRUST PLC UNIT TO SELL KAISER CEMENT TERMINAL AND PLANT FOR 50 MLN DLRS  
GOODYEAR <GT> TO RECEIVE 588 MLN DLRS FOR UNIT. Goodyear Tire and Rubber Co said it will receive about 588 mln dlrs in cash from Loral Corp <LOR> for the business of Goodyear Aerospace Corp. Goodyear said the previously announced acquisition by Loral is expected to be completed March 13. When Loral announced the transaction January 12, the company said it was paying 640 mln dlrs for Goodyear Aerospace. Goodyear said the price it will receive is after adjustments for such items as pension and benefits provision, allocation of liabilities and asset valuations. Last year Goodyear Aerospace had revenues of 695 mln dlrs.  
BRITISH AEROSPACE RAISES SYSTEM DESIGNERS STAKE. British Aerospace Plc <BAEL.L> said it has increased its stake in <Systems Designers Plc> to 22.1 pct or 25.46 mln ordinary shares following the purchase of 10.45 mln ordinary shares. The British Aerospace Pension Fund holds 2.15 mln ordinary shares in Systems, representing a stake of 1.9 pct. A spokesman for British Aerospace said it has no present or future intention of making a full bid for Systems Designers. System Designers shares were nine pence higher at 100 prior to the share stake announcement, and have showed little movement since.  
HANSON <HAN> UNIT TO SELL KAISER TERMINAL/PLANT. Hanson Industries, the U.S. arm of Hanson Trust PLC <HAN>, said it has proposed to sell, in separate transactions, Kaiser Cement's Northwest Terminals and Montana City plant, to Lone Star Industries Inc <LCE> and <Ash Grove Cement West Inc>, respectively for a total of 50.2 mln dlrs. Hanson said the deals are subject to normal conditions of closing. Hanson Industries completed the purchase of Kaiser Cement on March 3, for about 250 mln dlrs. Hanson said Kaiser Cement is now an indirect wholly owned unit of Hanson Trust and forms part of its building products group. "These sales are a continuation of an asset redeployment program at Kaiser Cement and will allow Kaiser to concentrate its efforts in the California marketplace, where it is the largest cement producer and holds a premiere market position," Hanson Industries chairman Gordon White said.  
CONTINENTAL HEALTH <CTHL> PURCHASES MARKETECH. Continental Health Affiliates Inc said that it has acquired <Marketech Inc>, an 80 pct partner in <Diatronics Nutrition Services>. Continental said Diantronics Nutrition Services is a joint venture with physicians providing patient-ready home infusion therapy products and services to outpatients of five northern New Jersery hospitals representing over 1,900 inpatient beds. Continental said the terms of the deal were not disclosed.  
SECURITIES DEALER HAS LEASEWAY <LTC> STAKE. Alpine Associates, a Cresskill, N.J. securities dealer, told the Securities and Exchange Commission it has acquired 565,100 shares of Leaseway Transport Corp, or 5.9 pct of the total outstanding common stock. Alpine, a limited partnership, said it bought the stock for 28.1 mln dlrs as an investment in the ordinary course of its business as a securities dealer. It left open the possibility that it might buy more Leaseway stock or sell some or all of its current stake, but said it has no plans to seek control of the company.  
CHRYSLER <C> DEAL LEAVES UNCERTAINTY FOR AMC WORKERS. Chrysler Corp's 1.5 billion dlr bid to takeover American Motors Corp <AMO> should help bolster the small automaker's sales, but it leaves the future of its 19,000 employees in doubt, industry analysts say. It was "business as usual" yesterday at the American Motors headquarters, one day after the proposed merger was unveiled by Chrysler and AMC's French parent Renault, according to company spokesman Edd Snyder. But AMC's future, to be discussed at a board meeting today, would be radically different as a Chrysler subsidiary than if it had continued with the state-run French car group as its controlling shareholder. Industry analysts said the future of AMC's car assembly plant in Kenosha, Wis., and its Toledo, Ohio, Jeep plant would be in doubt if the overcapacity predicted in the North American auto industry by the early 1990s comes to pass. Both plants are far from "state of the art" for car manufacturing sites, and AMC has a history of poor labor relations at each. "Chrysler doesn't need that many new plants," said Michael Luckey, automotive analyst for the Wall Street firm Shearson Lehman Brothers. "They probably will close the Toledo plant and move Jeep production to Canada." Ronald Glantz of Montgomery Securities said that at the very least, the new owner of the Toledo plant would be able to wring concessions from the United Automobile Workers union local representing Jeep workers. "The UAW won't be able to hold them up for ransom as they have AMC because during a down year, Chrysler will have underutilized facilities to transfer production," he said. Analysts said they foresaw no major complications that would abort a combination which historians said would be the auto industry's biggest merger since American Motors was formed in 1954. AMC was in need of a financial savior because of its losses of more than 800 mln dlrs since 1980 and pressures in France for Renault to cut its backing. The company had said it could not forecast consistent profitability until 1988 at the earliest. In announcing the takeover agreement, Chrysler chairman Lee Iacocca cited AMC's Jeep division as well as its new 675 mln dlr assembly plant at Bramalea, Ontario, and its network of 1,200 dealers as the major attractions. Analysts reasoned that Chrysler might feel moved eventually to sell off or close some of the older plants to cut overhead costs in view of the new debts and liabilities it would incur in the AMC buyout.  
<PACER SYSTEMS> TO MAKE ACQUISITION. Pacer Systems said it has agreed in principle to acquire the assets of Sea Data Corp, a maker of low-powered electronic systems including undersea intelligent recording sensors and high-density digital data recorders, for one mln dlrs.  
SAHLEN AND ASSOCIATES <SALNU> COMPLETES PURCHASE. Sahlen and Associates Inc said it has completed the purchase of Gleason Securities Service Inc of New York and Gleason Plant Security Inc of Connecticut. Sahlen said the deal's terms were not disclosed, but added that the acquired companies had combined annual revenues of over 18 mln dlrs. Sahlen, a private invetigation company, said the Gleason companies provide security guard services to corporations in the tri-state area.  
HENRY ANSBACHER HAS 51 PCT OF ADAMS AND PORTER INC. <Henry Ansbacher Holdings Plc> said it has acquired a 51 pct interest in the U.S. Retail and general corporate insurance broker <Adams and Porter Inc>. The move is the first step in building a new international insurance broking group following the appointment of a new management team for its Seascope Insurance Holdings unit. Ansbacher said A and P has exciting growth potential, particularly on the east coast of the U.S. And has an annual revenue of more than four mln dlrs. Ansbacher shares were up 4-1/2p to 90-1/2, helped by the announcement earlier today of a 1986 pretax profit rise to 5.56 mln stg from 2.74 mln in 1985.  
MOORE MCCORMACK <MMC> TO SELL GLOBE UNIT. Moore McCormack Resources Inc said it agreed in principle to sell its Globe Metallurgical Inc unit to Cyprus Minerals Co <CYPM> for undisclosed terms. The sale, expected to close by mid-April, is subject to certain conditions, including board approval at both companies. Globe produces silicon metals and magnesium ferrosilicon. The products are used in the chemical, aluminum, iron, rubber and semiconductor industries.  
U.S. JUSTICE DEPARTMENT REVIEWS ICAHN USAIR FILING. The U.S. Department of Justice (DOJ) is reviewing whether Trans World Airlines Inc <TWA> and Chairman Carl Icahn violated federal antitrust law by failing to seek advance clearance from the DOJ or the Federal Trade Commission for his extensive open-market purchases of USAir Group Inc <U> stock, a DOJ official told a Senate panel. "This is a matter that is being looked into," Charles Rule, acting assistant attorney general-antitrust, told the Senate Judiciary Committee's Antitrust Subcommittee. Rule declined further comment while the review was continuing. Rule was responding to panel Chairman Howard Metzenbaum (D-Ohio), who had asked why the department was not acting against "what appears to be a clear violation of the law." Metzenbaum said Icahn had failed to file a pre-merger notification form with the FTC prior to purchasing more than 15 mln dlrs' worth of USAir stock. But Rule said that, for airline companies, a purchaser would be exempt from the requirement if it instead had filed a merger application with the U.S. Department of Transportation. Icahn filed such an application with the DOT, but the filing was thrown out by the DOT on Friday. The DOT threw out the application late Friday on grounds it lacked the necessary data for the government to review the proposed USAir takeover bid. Icahn refiled a more complete application form Monday. Rule pledged to act against Icahn and TWA if a violation were found.  
CHEMLAWN CORP SAID IT IS TALKING WITH NEW SUITORS ABOUT BEING ACQUIRED.  CHEMLAWN CORP SAID IT IS TALKING WITH NEW SUITORS ABOUT BEING ACQUIRED  
CHEMLAWN <CHEM> IN TALKS ON BEING ACQUIRED. ChemLawn Corp said it has started talks on the possible sale of the company with "various parties" that it did not identify. The company said the talks began after it considred and rejected Waste Management Inc's <WMX> 27 dlr per share tender offer for all its sharesd. ChemLawn gave no details on the talks.  
SHV WITHDRAWS IC GAS OFFER. SHV Holdings NV said it is withdrawing its take-over bid for Imperial Continental Gas Association <ICGS.L> after failing to gain the minimum number of pledges sought from IC Gas shareholders. SHV said in a statement it had sought to gain 750,000 IC Gas shares under a 700p offer for IC Gas ordinary stock but was informed that level was not reached when the deadline expired. "The tender offer is therefore void," it said. SHV also offered 252 pence for every one stg nominal of IC Gas loan stock under the bid, made by <SHV (United Kingdom) Holding Co Ltd>.  
INVESTOR TO TAKE CONTROL OF RIVER OAKS <ROI>. River Oaks Industries Inc said it agreed in principle to give control of the company to Benson Seizer, a New York investor, in return for 2.6 mln dlrs in capital. The company, a maker of mobile homes, said it terminated merger discussions with <Nursing Centers of America>. River Oaks said it will place a 2.6 mln dlr convertible note with Seizer, who in turn will name six additional members to the company's five-member board. One of the new directors will take over as chairman and chief executive officer, River Oaks said. River Oaks said the note will be convertible into two mln shares of its common stock at one dlr a share. The company currently has 14 mln shares outstanding. The company said it will also grant Seizer an option to buy an additional 2.6 mln shares during the next four years at 1.25 dlrs a share during the first year and 1.50 dlrs a share thereafter. The company said the money raised from Seizer will further strengthen its balance sheet and enhance its ability to seek selective expansion opportunities. Seizer is experienced in turnaround situations and is expected to take direct involvement in River Oaks management, said Charles F. DeGroot, who will remain a director of the company after giving up the post of chairman to one of Seizer's board nominees. Don Manning will cede his post as chief executive but will remain president, the company said.  
JONES AND VINING SAID VULCAN CORP OFFERS FIVE DLRS A SHARE FOR JONES.  JONES AND VINING SAID VULCAN CORP OFFERS FIVE DLRS A SHARE FOR JONES  
JONES AND VINING <JNSV> GETS VULCAN <VUL> BID. Jones and Vining Inc said Vulcan Corp, one of its main competitors in the production of shoe lasts, has offered to acquire Jones and Vining for five dlrs a share. Jones and Vining said a management effort to take the company private will go ahead at 4.50 dlrs per share. The form of the buyout has not yet been determined and the buyout is subject to a nunber of conditions, it said. Jones and Vining said its board believes that a transaction with Vulcan would be difficult to complete, but it has asked Vulcan for further information to explore the bid. On January 23, Jones and Vining said its board had recommended that shareholders aprove a management buyout at 4.50 dlrs a share. On February Six, Vulcan initially offered to acquire Jones and Vining for five dlrs a share, but Jones and Vining dismissed the offer as "frivolous" and "without substance" and said the bid failed to comply with provisions of the Securities Act of 1934.  
BELGIAN MINISTER UNVEILS PRIVATISATION PLAN. Belgian Budget Minister Guy Verhofstadt has proposed a plan to sell off shares in several state-owned enterprises, including national airline Sabena and the postal and telecommunications authority, government sources said. They said the plan could raise more than 25 billion francs in revenue over the next five years according to Verhofstadt's projections, helping the government to reduce its huge budget deficit, targetted this year at 418 billion francs. But the scheme had received a guarded reception from the Social Christian parties in Belgium's centre-right coalition when Verhofstadt unveiled it at a cabinet meeting yesterday. Discussion of the plan was likely to be long and difficult, the sources said. Verhofstadt proposes beginning the selloffs in the last quarter of 1987, with the sale of 30 to 40 pct of state investment company SNI. He expects the sale to raise three billion francs, they added. A 25 pct share in Sabena would be sold in mid-1989 for 1.5 billion francs, while 50 pct of the postal and telecommunications authority would be sold off in two stages in mid-1990 and early 1992, raising at least seven billion francs. Also on Verhofstadt's list are the Maritime Transport Authority, leading gas distributor Distrigaz, CGER savings bank, CGER, and several other credit institutions. Le Soir daily quoted CGER vice-president Paul Henrion as expressing strong opposition to the privatisation of his bank. "Public company we are and public company we wish to stay," Henrion told the paper.  
REXNORD <REX> TO SELL RAILWAY EQUIPMENT UNIT. Rexnord nc said it signed a definitive agreement to sell its Railway Maintenance Equipment Co subsidiary to Banner Industries Inc. Terms were withheld. It said Railway Maintenance had 1986 sales of 16 mln dlrs and employs 100 people. Rexnord said the sale is part of a major program to divest several of its businesses representing about 200 mln dlrs in net assets. Still to be divested are the Process Machinery Division with sales of 137 mln dlrs and Mathews Conveyer Co, with sales of 83 mln dlrs.  
MEESE SEES A PLUS IN CHRYSLER-AMC MERGER. Attorney General Edwin Meese said he saw some benefit in the proposed purchase of American Motors Co <AMO> By Chrysler Corp <C> in that it would return the smallest of the U.S. auto manufacturers to American hands. Meese told the House Appropriations Subcommittee that consideration would be part of the Justice Department's review of the proposed merger. He said the agency has not yet received a formal notice of the merger which would start the review process. Chrysler has made a 1.3 billion dlr bid to buy AMC from its French parent Renault. "I think one of the things that has to be recognized in that merger is that it appears, at least, that a good portion of the ownership of American Motors, which has been in overseas hands will be put back in American hands," Meese told the subcommittee. "That may be one of the factors that would be weighed in the judgment," he added. Renault currently holds about 46 pct of AMC.  
SOSNOFF SAYS CAESARS <CAW> OFFERED STOCK BUYBACK. Martin Sosnoff, who has offered to buy Caesars World Inc for 28 dlrs a share, said senior officials of the company have offered to buy back the Caesars stake he already holds, now 13.6 pct of the total outstanding. In a filing with the Securities and Exchange Commission, Sosnoff, a New York investor and money manager, said the offers to buy back his stock occurred "on several occasions during the past year." The offers were made by several Caesars World representatives, including its chairman, Henry Gluck, he said. Sosnoff said he rejected all of the proposals. The Caesars World official suggested various forms of payment for Sosnoff's stake, including other securities of the company and cash, he said. Sosnoff did not detail the value of the proposed compensation. Also suggested was a deal involving "put" and "call" option regarding Sosnoff's Caesars World holdings, he said. The proposed deals would have also included a "standstill" agreement, which would have restricted Sosnoff's right to buy more Caesars World stock or "to take any action adverse to incumbent management," he said. Sosnoff's report on the offers he received for his Caesars World shares were amended to his official offer to purchase the company, as well as reported to the SEC. Sosnoff now holds about 4.1 mln Caesars World shares, or 13.6 pct of the company's 30 mln shares outstanding. The Sosnoff offer to buy the shares of the company he does not already hold has been valued at 725.2 mln dlrs.  
VERSAR <VSR> TO BUY MARIETTA <ML> UNIT. Versar Inc said it has agreed in principle to acquire Martin Marietta Corp's Martin Marietta Environmental Systems unit for about 5,300,000 dlrs. Versar said it would use its working capital and an established life of credit to find the purchase, which is subject to approval by both boards and is expected to be completed in April. Marietta Environmental had 1986 revenues of about nine mln dlrs. Versar said the acquisition should have a "moderately" favorable effect on its earnings this year.  
JIM WALTER <JWC> BUSY OWENS-CORNING <OCF> PLANT. Jim Walter Corp said it completed the acquisition of Owens-Corning Fiberglas Corp's mineral ceiling and fiberboard plant in Meridian, Miss. Terms were not disclosed The plant's operations will complement existing ceiling materials production within jim Walter's building material's group, which last year generated income of 54.9 mln dlrs on sales of 740 mln dlrs.  
INVESTMENT FIRM BOOSTS AMERFORD <AMRF> STAKE. Louart Corp, a Los Angeles investment firm, said it raised its stake in Amerford International Corp to 105,615 shares, or 7.8 pct of the total outstanding, from 69,715 shares, or 5.2 pct. In a filing with the Securities and Exchange Commission, Louart said it bought 35,900 Amerford common shares between March 19, 1986 and Jan 30, 1987 at prices ranging from 3.92 to 4.29 dlrs a share. It said it bought the shares for investment purposes and might increase its stake in the future.  
FIRST BOSTON <FBC> SWISS AFFILIATE BOOSTS STAKE. First Boston, the Swiss affiliate of First Boston Inc, said it raised its stake in the company to 11,262,307 shares, or 35.5 pct of the total, from 10,262,307 shares, or 32.8 pct. In a filing with the Securities and Exchange Commission, Financiere Credit Suisse said it bought 870,100 First Boston common shares between Feb 10 and 27 at prices ranging from 48.125 to 53.000 dlrs a share, or 22.5 mln dlrs total. It said it bought the shares as part of an agreement to raise its minority stake in First Boston to 40 pct, the same stake level First Boston holds in Financiere Credit Suisse.  
OAK INDUSTRIES <OAK> TO BUY REXNORD <REX> UNIT. Oak Industries said it signed a definitive agreement to buy the stock of Rexnord Inc's Railway Maintenance Equipment Co unit, for an undisclosed sum. The company said Railway Maintenance had 1986 revenues of 16 mln dlrs. Oak said the acquisition is part of its two-tier strategy of buying releated and unrelated businesses. Oak had a tax loss carryforward of 125 mln dlrs at the end of 1986.  
WALL STREET STOCKS/TENNECO INC <TGT>. Tenneco Inc, a company that has long been rumored to be a takeover candidate, rose sharply today when speculation surfaced that investor T. Boone Pickens may be targeting the company for an acquisition, traders and analysts said. Tenneco spokesman Joseph Macrum said "we have no comment to make whatsoever." Pickens was not available for comment. Traders noted that activity in the stock increased today after a published report linked Pickens to Tenneco. Tenneco rose two points to 48-3/4. Paul Feretti, an analyst with New Orleans-based Howard, Weil, Labouisse, Friedrichs, Inc, said he was not surprised at market rumors that Tenneco might be the target of a takeover attempt. "It's pure market speculation that Boone Pickens and his group may be interested," Feretti said. "But Tenneco would be a challenge to run because of its sheer size and diversity. Mr. Pickens is a man who likes a challenge." Pickens, who made an unsuccessful attempt to take over Dallas-based Diamond Shamrock Corp <DIA> last winter, has made no secret of his plans to acquire additional natural gas reserves in the belief that gas prices will stabilize sooner than oil prices. Tenneco holds natural gas reserves estimated in excess of 3.5 trillion cubic feet, analysts said. Feretti conservatively estimated Tenneco's breakup value at 58 dlrs a share and said the company generated a cash flow of about 10 dlrs a share "which is probably very attractive to Pickens." Other analysts, however, estimate a breakup value well into the 60 dlr a share range. "I strongly doubt that there is going to be any hostile takeover," Drexel Burnham Lambert Inc's Houston-based analyst John Olson said, putting little credence in the rumors. "Tenneco is a gargantuan enterprise with seven billion dlrs in long-term debt and preferred stock outstanding." He said the buyer would also have to deal with "the intractable problems" Tenneco faces with its farm equipment unit and energy businesses. Analysts suggested that Tenneco could use a number of defensive strategies to fend off an unwanted buyer, such as spin off some of its non-energy businesses directly to shareholders, buy back shares or create a limited partnership out of its natural gas pipeline interests. An analyst who asked to remain unidentified, discouraged the Pickens rumor. "Pickens has a plateful already with his holdings in Burlington Northern and Amerada Hess," he said. "I don't think he would be willing to take on Tenneco's problems with Case (the farm equipment unit), which has been losing about 180 mln dlrs annually and is worth less than a billion dlrs on the market today."  
PARALAX <VIDO> AGREES TO ACQUIRE AMERICAN VIDEO. Paralax Video Enterprises Inc said it has agreeed to acquire <American Video Group Inc> in exchange for 287,700 Paralax restricted common shares and three year warrants to buy 318,600 restricted shares at six dlrs a share. Paralax said holders of some American Video convertible debentures have elected to exchange them for Paralax restricted common with a market value of about 380,000 dlrs with that value to be determined in about 45 days. American Video is a closely held company operating video rental concessions in post and base exchanges at 54 Army, Air Force, Navy and Coast Guard installations. In its most recent year, the company had revenues of about 1.5 mln dlrs. Paralax said the acquisition is scheduled to close March 16. The company now has about 5.5 mln shares outstanding.  
BAYLY <BAYL> BUYS MAJORITY OF CHUTES. Bayly Corp said it acquired 55 pct of Chutes Corp, a maker of denim-oriented sportswear headquartered in Seattle, Wash. Terms were not disclosed.  
CORRECTED - REXNORD <REX> TO SELL RAILWAY UNIT. Rexnord Inc said it signed a definitive agreement to sell its Railway Maintenance Equipment Co subsidiary to Oak Industries Inc. Terms were withheld. Also participating in the agreement was Banner Industries Inc, which previously agreed to acquire Rexnord. Railway Maintenance had 1986 sales of 16 mln dlrs. Rexnord said the sale is part of a major program to divest several of its businesses representing about 200 mln dlrs in net assets. Still to be divested are the Process Machinery Division with sales of 137 mln dlrs and Mathews Conveyer Co, with sales of 83 mln dlrs. -- Corrects mame of purchaser  
WALL STREET STOCKS/SUPERMARKETS GENERAL <SGL>. Dart Group Corp <DARTA>, which wants to acquire Supermarkets General Corp for 1.62 billion dlrs, is not likely to give up without a fight if its target seeks another buyer, arbitrageurs said. Speculation that Dart's offer of 41.75 dlrs per share could be just the beginning of a bidding contest helped Supermarkets shares gain one to 42-1/8  on 2.3 mln shares. One rumor had Federated Department Stores Inc <FDS> taking a look at Supermarkets General. "Our policy is that we do not comment on any rumors or speculation of this nature," a Federated spokeswoman said. An arbitrageur noted that Dart, controlled by chairman Herbert H. Haft and his son Robert, last year raised its initial bid for Safeway Stores by approximately 10 pct when Safeway resisted. However, that company was later sold to a buyout group that topped the Hafts. If history repeats itself, the Hafts could raise their bid to 46 dlrs if they are rebuffed by Supermarkets General, the arbitrageur said. But another arbitrageur said the Hafts' present bid seemed "quite fair." He said the offer amounts to 10 times after-tax-cash flow which is "probably fully priced."  
AMERICAN MOTORS <AMO> WEIGHS TAKEOVER PROPOSAL. American Motors Corp said its directors met Wednesday to review the takeover proposal which the corporation received Monday from Chrysler Corp <C>. AMC said its board has retained independent investment and legal advisers and expects to meet periodically over the next several weeks on the proposal.  
KANSAS CITY SOUTHERN <KSU> MERGER RESPONSE. Kansas City Southern Industries Inc said an attempt by Santa Fe Southern Pacific Co <SFX> to reopen the proposed merger of the Atchison, Topeka and Santa Fe Railway Co and the Southern Pacific Transportation Co offers "nothing truly new." In a letter to shippers, Kansas City Chairman Landon Rowland stated "This proposed merger is plainly anti-competitive, as found by the ICC and urged by the Department of Justice. Nothing has changed." Landon said Kansas City Southern is continuing its efforts to acquire the transportation operation of Santa Fe Railway.  
COKE AFFILIATE TO SELL DELAURENTIIS <DEG> STAKE. De Laurentiis Entertainment Group Inc said Embassy Communications, a Californai general partnership affiliated with Coca-Cola Co <KO>, plans to sell its 10.1 pct stake in the company. In a filing with the Securities and Exchange Commission for a secondary offering, De Laurentiis said Embassy will offer its entire stake in the company of 964,936 shares of common stock in the public sale. De Laurentiis said it has 9.6 mln shares outstanding. PaineWebber Inc will underwrite the offering.  
WILLIAMS COS <WMB> COMPLETES SALE OF UNIT. Williams Cos said it completed the sale of its Agrico Chemical Co unit to Freeport-McMoRan Resource Partners L.P. <FRP> for an initial 250 mln dlrs cash. The company said it will also receive an additional 100 to 250 mln dlrs in five years based on the operating performance of the unit. It said the cash proceeds will be used to lower its debt costs.  
HONG KONG FIRM UPS CALMAT <CZM> STAKE TO 9.8 PCT. Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Calmat Co to 1,480,830 shares, or 9.8 pct of the total outstanding common stock, from 1,217,230 shares, or 8.0 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand firm, said it bought 263,600 Calmat common shares between Feb 17 and March 9 for 13.1 mln dlrs. It has said it bought the stock for investment purposes, but may raise its stake to 15 pct.  
PARALAX VIDEO <VIDO> TO BUY AMERICAN VIDEO. Paralax Video Enterprises Inc said it signed a definitive agreement to buy <American Video Group Inc> for stock. According to the merger proposal, American Video shareholders will receive about 287,700 restricted Paralax shares, and warrants to buy another 318,600 restricted shares at six dlrs a share. The warrants run for three years. In addition, it said holders of American Video convertible debentures agreed to exchange their holdings for about 380,000 dlrs worth of Paralax stock. American Video operates stores in U.S. military bases.  
ROCHESTER TELEPHONE <RTC> TO BUY CANTON PHONE. Rochester Telephone Corp said it agreed to buy <Canton Telephone Co> for undisclosed terms. Canton serves customers in northeastern Penn. In 1986, it had operating revenues of about 1.3 mln dlrs, the company said.  
ALABAMA INVESTOR UPS PENOBSCOT SHOE <PSO> STAKE. Donaldson Bramham Lee, an investor from Birmingham, Alabama, said he raised his stake in Penobscot Shoe Co to 40,500 shares, or 6.6 pct of the total outstanding common stock, from 33,500 shares, or 5.5 pct. In a filing with the Securities and Exchange Commission, Lee said he bought 7,000 Penobscot common shares between Feb 12 and March 2 at prices ranging from 13.75 to 16.25 dlrs a share. Lee has said he bought the Penobscot stock for investment purposes only and has no plans to seek control of the company, although he may buy more stock.  
GENERAL ELECTRIC <GE> TO SELL DATEL UNIT. General Electric Co's GE Semiconductor Business said it agreed to sell its Datel unit to a group led by the unit's president, Nicolas Tagaris. Terms were not disclosed. Tagaris founded the company, which produces precision data acquisition, conversion and control components and subsystems, in 1970. He sold it to GE in 1979.  
TRICO <TRO> SETS DATE FOR ACQUISITION VOTE. Trico Industries Inc said it set March 31 as the date for a special shareholders meeting for a vote on the proposed acquisition of the company by Paccar Inc <PCAR>. In January the two companies announced an agreement covering a proposed acquisition by Paccar of Trico's approximately 8.2 mln shares outstanding for eight dlrs per share in cash.  
HUGHES TOOL SHAREHOLDERS APPROVE MERGER WITH BAKER INTERNATIONAL.  HUGHES TOOL SHAREHOLDERS APPROVE MERGER WITH BAKER INTERNATIONAL  
CREW UNION SETS PACT WITH PACIFIC SOUTHWEST <PSG>. Pacific Southwest Airlines said it reached an agreement with the Southwest Crew Controllers Association needed to satisfy conditions of USAir Group's <U> proposed acquisition of PSA. PSA said this is the third of four unions agreement is needed with for USAir's acquisition to be consummated. Under the agreement, PSA crew controllers received assurances they will be provided with labor protective provisions and a seniority integration process.  
HARPER AND ROW GETS BID FROM HARCOURT BRACE JOVANOVICH FOR 50 DLRS/SHR.  HARPER AND ROW GETS BID FROM HARCOURT BRACE JOVANOVICH FOR 50 DLRS/SHR  
HUGHES <HT> APPROVES MERGER WITH BAKER <BKO>. An overwhelming majority of Hughes Tool Co shareholders approved a merger agreement with Baker International Corp based on revised terms that allow the companies additional time to sell a drilling bit business as required by the U.S. Justice Department. Hughes chairman William Kistler said the revised terms of the proposed consent decree also set a 10 mln dlr cap on how much funding the newly combined companies will have to spend on the disputed drilling bit business until it is sold. An earlier proposed consent decree did not establish a funding limit. The Baker-Hughes merger, which would would create a 1.2 billion dlr oilfield services company, almost fell through earlier this month when Hughes balked at terms of a proposed Justice Department consent decree that would have given the companies only three months to find a buyer for the Reed business. Baker said today it would withdraw the one billion dlr lawsuit it had filed to force Hughes to follow through with the merger. Hughes' Kistler, speaking to reporters after 85 pct of Hughes' shareholders approved the merger, said the revised terms of the agreement give the companies six months to find a buyer for the Reed drilling bit business. The previous agreement had proposed a three-month period. Kistler said the the government had also indicated it would consider granting, if necessary, an additional three-month extension to complete the sale. He said there were "several people looking" at the domestic drilling bit business. The companies, Kistler said, have also decided to voluntarily sell a Reed plant in Singapore. Kistler estimated that the merger, which should be completed in about two weeks, will result in annual cost savings of about 50 mln dlrs. He said he expects "substantial cutbacks" in the 20,000-member workforce at Baker-Hughes Inc, the name the merged company will take. Kistler said the cost savings and greater efficiencies should put the company on a profitable course. "We think that in the third or fourth quarter after the merger we should see something close to breakeven," he said. In the fourth quarter of 1986, Hughes earned 31.7 mln dlrs on sales of 215.7 mln dlrs. Baker, in its first fiscal quarter ended December 31, lost 34.2 mln dlrs on revenues of 297.7 mln dlrs.  
<BROAD> ACQUIRES <VOGT AND CONANT> UNIT. Broad Corp said it acquired the construction activities of Vogt and Conant Co of Cleveland. The combined companies, to be called Broad, Vogt and Conant INc, will be the largest structural steel erection company in the U.S. Combined sales of the two operations were more than 40 mln dlrs in 1986.  
HARPER <HPR> GETS BID FROM HARCOURT <HBJ>. Harper and Row Publishers Inc said it received an acquisition offer from Harcourt Brace Jovanovich INc to acquire all of Harper and Row's shares at 50 dlrs a share in cash. Harper said it will consider the proposal, including such possible concerns as anti-trust and other legal considerations. On Monday, Harper and Row received a surprise 34 dlr-a- share bid from investor Theodore Cross, owner of six pct of the shares, for the stock he does not own. Harcourt made clear in its offer that it will step aside if Harper's directors and shareholders reject the bid, Harper said. Harper said the board has previously expressed a strong determination to remain an independent publishing enterprise. Harper also said that New World Pictures, a shareholder, has requested a copy of Harper's shareholder list to be used in soliciting proxies. New World has 30,800 shares of the total 4.4 mln shares. Harper and Row's stock closed off 3/4 to 33-1/2 after rising 9-1/4 points yesterday. Shareholders are due to vote April 2 on a shareholders rights plan designed to thwart hostile takeovers. Ivan Obolensky, an analyst with the investment banking for of Sterling Grace and Co said Harper and Row is one of the few remaining independent publishers with a "back list" of authors stretching back 200 years. He said as long as the company maintains copyrights with the estates of deceased authors, it controls all motion picture and television rights to the stories. And he said new printing technologies make new editions a profitable business. "Harcourt Brace needs a back list of that nature and is willing to pay up for it," Obolensky said. But he said Harper and Row "has plenty of beef to warrant a 50 dlr bid.  
GOLDMAN SELLS MOST 1ST PENNSYLVANIA <FPA> STOCK. Goldman, Sachs and Co told the Securities and Exchange Commission it sold nearly its entire stake in First Pennsylvania Corp of 2,450,598 shares, or 5.2 pct of the total outstanding common stock. Goldman Sachs said it has about 17,800 First Pennsylvania common shares remaining. On February 26, the company redeemed convertible debentures with common stock, which at once increased Goldman's stock holding and the total outstanding. Goldman Sachs said it originally bought the stake as part of its arbitrage business. Marine Midland Banks <MM> has an agreement in principal to acquire First Pennsylvania.  
BUSINESSMAN HAS 8.9 PCT OF DEL E. WEBB <DWP.A>. John Cotton, an Arizona businessman, told the Securities and Exchange Commission he has acquired the equivalent of 213,500 shares of Class A common shares in Del E. Webb Investment Properties, or 8.9 pct of the total. Cotton, president of Finalco Group Inc, a Paradise Valley, Ariz., data processing equipment maker, said he bought the stake, which includes warrants to buy 186,300 shares, for 266,958 dlrs. The warrants are exerciseable at 9.50 dlrs a share, he said. Cotton said it bought the stock for investment purposes only.  
TAFT BROADCASTING REJECTS 145 DLR PER SHARE BUYOUT OFFER FROM THETA CORP.  TAFT BROADCASTING REJECTS 145 DLR PER SHARE BUYOUT OFFER FROM THETA CORP  
TAFT <TFB> REJECTS 145 DLR/SHR OFFER. Taft Braodacasting Co said its board of directors unanimously decided not to accept the pending proposal of Theta Corp, an investor group led by Dudley Taft. The decision was based on, among other things, the advise of its financial advisors, goldman sachs and co, that the offer of 145 dlrs per share was inadequate. Taft said the board concluded that the offer failed to recognize fully the future propsects of the company and directed management to explore alternatives including possible financial restructuring.  
AMC IMPOSES HIRING FREEZE DUE TO TAKEOVER BID. American Motors Corp <AMO> management has ordered a hiring freeze in view of Chrysler Corp's <C> 1.5 billion dlr takeover bid, a spokesman for AMC said. Analysts said the merger is virtually certain to go ahead. American Motors directors met for five hours Wednesday to review the takeover proposal. "The board ... Expects to be meeting periodically over the next several weeks on the Chrysler proposal," AMC said in its first formal statement since it acknowledged the Chrysler proposal on Monday. Chrysler, the number three U.S. Automaker, has said the merger is motivated principally by its desire to acquire AMC's profitable Jeep business and dealers, as well as a new modern car assembly plant in Bramalea, Ontario. That means a guaranteed future for much of AMC, but it leaves in question the fate of many of its 19,000-plus employees, according to industry analysts. AMC's Toledo, Ohio Jeep plant has 1,850 hourly workers on indefinite layoff while its Kenosha, Wisconsin, car plant has another 2,250 on layoff.  
LEIGH-PEMBERTON OPPOSES TAKEOVER PROTECTION RULES. The Bank of England does not favour the introduction of rules to shield companies from hostile takeover attempts, its governor, Robin Leigh-Pemberton, said. Instead, merchant banks advising bidding companies must show restraint and responsibility to avoid the excesses that have marred recent takeovers, he told the Yorkshire and Humberside Regional Confederation of British Industries' annual dinner. Leigh-Pemberton also called on companies to improve ties with institutional investors, suggesting representatives of those institutions be granted seats on the boards of directors of companies they invest in. "Boards cannot expect protection from unwelcome predators, for that is but a short step from saying that they should be protected from their own shareholders -- who are, after all, the proprietors of the company," Leigh-Pemberton said. He added takeovers and mergers had an important role to play in furthering economies of scale, integration and more efficient market penetration. "The degree of success or failure (of a takeover) has not in my experience depended on whether or not the takeover was contested," he said. Leigh-Pemberton noted there had been excesses in takeover activity in the recent past. "The aim is to pressurise a company's management into action dedicated solely to a favourable impact on the share price in the short-term, partly or even primarily at the expense of the future," he said. Such bids "often depend for their success on creating a highly-charged and artificial situation in the share market, and give rise to temptations, on both sides of the battle, to engage in aggressive, even manipulative tactics that are immensely damaging to the interest of the shareholders," he said. In a clear reference recent events, he said "those in the City who act for companies or individuals .. Must, I suggest, be ready to accept a full measure of responsibility -- even if it entails opprobrium -- for the transactions that may result." They "should exercise the most careful judgment at the outset with respect to the clients for whom they act and the activities contenplated. Those who sow wind cannot expect the whirlwind to visit elsewhere," he added.  
JAPANESE PURCHASE OF U.S. HIGH-TECH FIRM OPPOSED. Commerce Secretary Malcolm Baldrige has asked the White House to consider blocking the planned Japanese acquisition of a major U.S. Computer and semiconductor maker, U.S. Officials said yesterday. The officials told reporters Baldrige had serious concerns on national security grounds about the sale of Schlumberger Ltd <SLB> unit <Fairchild Semiconductor Inc> to Fujitsu Ltd <ITSU.T>. The officials said the sale could leave the United States overly dependent on a foreign company for equipment used in advanced missiles, aircraft electronics and intelligence gathering. The U.S. Officials added the sale would also worsen the strained relations between the two countries stemming from the huge Japanese trade surplus. The White House Economic Policy Council would consider the sale in the coming weeks, they said. Defence Secretary Caspar Weinberger's position was not known, but in the past, he has opposed the transfer of high technology to foreign governments or companies. Computers made by U.S. Manufacturers are widely used in the world, but Tokyo told U.S. Negotiators recently it prefers local manufacturers and would not buy U.S. Supercomputers.  
RENOUF SELLS 10.83 PCT NZI STAKE TO BRIERLEY. <Renouf Corp Ltd> said it sold its 10.83 pct stake in <NZI Corp Ltd> to <Brierley Investments Ltd>, (BIL), for 207.7 mln N.Z. Dlrs. Renouf managing director Mike Cashin said in a statement it had been Renouf's intention to build up a long-term strategic position in NZI. "But it became clear to us that it was in the best interests of both NZI and ourselves for Brierley Investments to acquire our holding," he said. He said Renouf built up its NZI holding over the past six months. The sale comprised 74.9 mln shares at 2.725 N.Z. Dlrs a share and 2,095 warrants at 1,709 dlrs each. The warrants are attached to a 150 mln Swiss franc note issue. Each bond of 5,000 francs carries a detachable warrant entitling the bearer to 2,486 NZI shares. In its 1986 annual report BIL reported that it held a 19 pct stake in NZI. NZI has 673.4 mln ordinary shares on issue. Total capital including shares attached to warrants is 678.8 mln shares. Cashin said the sale will result in a significant profit and places Renouf in a good position to consolidate on recent transactions and pursue other opportunities. NZI shares were at 2.18 N.Z. Dlrs, BIL at 4.08 and Renouf at 6.15 at the close of trading. BIL executives were unavailable for comment.  
GUINNESS CHALLENGES 5.2 MLN STG PAYMENT TO LAWYER. Guinness Plc <GUIN.L> , the brewing group, has challenged a 5.2 mln stg payment to a U.S. Lawyer who says he organised its controversial takeover of Scotch whisky maker <The Distillers Co Plc>. But attorneys for lawyer Thomas Ward, a member of the Guinness board, told a court yesterday in the Channel Island of Jersey that Ward saw the payment as his reward for services in last year's 2.7 billion stg takeover. Britain's Department of Trade and Industry is investigating the takeover. Guinness says its former chairman Ernest Saunders and Ward "breached their fiduciary duty" in authorising the payment to Ward, via a Jersey-based company, Marketing and Acquisitions Consultants and has gone to the Jersey court to recover it. MAC said in defence documents that Ward was the main negotiator in the battle for Distillers against rival bidder Argyll <AYLL.L> Group Plc. "The bid would not have been successful but for the ... Services of Mr Ward," MAC attorneys said in the documents submitted in court. "The payment was, in all the circumstances, reasonable, proper and fully earned."  
GUS MAKES 8.2 MLN STG AGREED OFFER FOR PANTHERELLA. Great Universal Stores Plc <GUS.L> said it has made an agreed offer for <Pantherella Plc>, valuing the company at 8.2 mln stg and each Pantherella ordinary share at 205 pence. The offer is based on eight new "A" non voting ordinary shares in GUS plus 95.16 stg for every 100 ordinary Pantherella. The new GUS shares will not receive the eight pence per share interim dividend in respect of the year ending March 1987, the statement said. GUS has received irrevocable undertakings to accept the offer in respect of 39.1 pct of Pantherella shares from the company's directors and their families. The Pantherella board estimates the company, which manufactures socks, will show a 1986 pretax profit of about 690,000 stg.  
LEIGH-PEMBERTON OPPOSES TAKEOVER PROTECTION RULES. The Bank of England does not favour the introduction of rules to shield companies from hostile takeover attempts, its governor, Robin Leigh-Pemberton, said. Instead, merchant banks advising bidding companies must show restraint and responsibility to avoid the excesses that have marred recent takeovers, he told the Yorkshire and Humberside Regional Confederation of British Industries' annual dinner. Leigh-Pemberton also called on companies to improve ties with institutional investors, suggesting representatives of those institutions be granted seats on the boards of directors of companies they invest in. "Boards cannot expect protection from unwelcome predators, for that is but a short step from saying that they should be protected from their own shareholders -- who are, after all, the proprietors of the company," Leigh-Pemberton said. He added takeovers and mergers had an important role to play in furthering economies of scale, integration and more efficient market penetration. "The degree of success or failure (of a takeover) has not in my experience depended on whether or not the takeover was contested," he said. Leigh-Pemberton noted there had been excesses in takeover activity in the recent past. "The aim is to pressurise a company's management into action dedicated solely to a favourable impact on the share price in the short-term, partly or even primarily at the expense of the future," he said. Such bids "often depend for their success on creating a highly-charged and artificial situation in the share market, and give rise to temptations, on both sides of the battle, to engage in aggressive, even manipulative tactics that are immensely damaging to the interest of the shareholders," he said. In a clear reference recent events, he said "those in the City who act for companies or individuals .. Must, I suggest, be ready to accept a full measure of responsibility -- even if it entails opprobrium -- for the transactions that may result." They "should exercise the most careful judgment at the outset with respect to the clients for whom they act and the activities contenplated. Those who sow wind cannot expect the whirlwind to visit elsewhere," he added.  
TAFT <TFB> REJECTS 145 DLR/SHR OFFER. Taft Broadacasting Co said its board of directors unanimously decided not to accept the pending buyout proposal of <Theta Corp>, an investor group led by Dudley Taft. The decision was based on, among other things, the advice of its financial advisors, Goldman Sachs and Co, that the offer of 145 dlrs per share was inadequate. Taft said the board concluded that the offer failed to recognize fully the future propsects of the company and directed management to explore alternatives including possible financial restructuring.  
POPE EVANS <PER> REPURCHASES SHARES. Pope, Evans and Robbins Inc said it has repurchased 780,000 common shares from Putnam Mills Corp principals Sidney and Peter Kaplan for 2.25 dlrs per share. It said the purchase price will be applied against the 1,700,000 dlrs Putnam Mills currently owes Pope Evans for merchandise.  Pope Evans has about 7.6 mln shares outstanding. The company also said it has agreed in principle to acquire privately-held Pat Fashions Industries Inc for 18 mln dlrs in cash and notes, with financing to come partly from bank borrowings, subject to approval by the Pope Evans board and Pat shareholders. Pat Fashions imports apparel from the Far East and makes apparel domestically as well.  In the year ended November 30, Pat earned 5,400,000 dlrs pretax on sales of 83.0 mln dlrs.  
BAIRD <BATM> GETS TEMPORARY RESTRAINING ORDER. Baird Corp said the Massachusetts state court for Suffolk county has granted it a temporary restraining order prohibiting Mark IV Industries Inc <IV> from further purchases of Baird stock until Mark IV complies with the Massachusetts Anti-Takeover Statute. The company said Mark IV currently owns at least 17.6 pct of Baird stock and has indicated that it may attempt to acquire Baird. Baird said the U.S. District Court in Boston has denied Mark IV's application for a temporary restraining order to prevent enforcement of the Massachusetts takeover law.  
DUDLEY TAFT AND NARRAGANSETT CAPITAL TO PURSUE TAFT BROADCASTING BID.  DUDLEY TAFT AND NARRAGANSETT CAPITAL TO PURSUE TAFT BROADCASTING BID  
DUDLEY TAFT TO PURSUE TAFT BROADCAST <TFB> BID. Taft Broadcasting Co vice chairman Dudley Taft and Narragansett Capital Inc <NARR> said they intend to pursue their effort to acquire Taft Broadcasting despite the rejection yesterday of their 145 dlr per share offer by the Taft Broadcasting board. Dudley Taft and Narragansett, in a joint statement, said they intend to explore alternatives to achieve the acquisition, including further talks with Taft Broadcasting. They said they are confident that the Taft Broadcasting board will conclude that the resolution of the company's current "unstable situation" as quickly as possible is in the best interests of all parties. They said the Taft board did not conclude that their offer was not fair to Taft shareholders.  Taft Broadcasting yesterday, however, said financial advisor Goldman, Sachs and Co found the offer to be inadequate.  
FIRST UNION <FUNC> ACQUISITION ADVANCES. First Union Corp said shareholders of First North Port Bancorp of Northport, Fla., have approved a merger into First Union for 40 dlrs per share, or about 5,100,000 dlrs. The company said the acquisition is still subject to regulatory approvals and is expected to be completed during the second quarter.  
<CONCORDE VENTURES INC> IN MERGER AGREEMENT. Concorde Ventures Inc said it has signed a letter of intent to acquire Englewood, Colo., homebuilder Winley Inc for 12 mln common shares. The investment company said after the merger the combined company will have 15 mln shares outstanding. For the year ended January 31, Winley earned 116,000 dlrs pretax on revenues of 11.7 mln dlrs.  
BORG-WARNER TO SELL INDUSTRIAL PRODUCTS BUSINESS FOR ABOUT 240 MLN DLRS.  BORG-WARNER TO SELL INDUSTRIAL PRODUCTS BUSINESS FOR ABOUT 240 MLN DLRS  
QINTEX EXTENDS PRINCEVILLE <PVDC> OFFER. <Qintex America Ltd> said it is again extending its offer of 13 dlrs a share for 3.3 mln Princeville Development Corp shares until today from yesterday. As reported yesterday, Qintex said, about seven mln Princeville shares had been tendered in response to the offer. Qintex said it is extending the offer to allow Princeville to comply with federal law restricting the ownership of U.S. airlines by non-U.S. citizens and to finalize the terms and conditions of the letter of credit or bank guarantee required under the previously announced acquisition agreement.  
CLAYTON AND DUBILIER NEW JOINT UNIT TO BUY FIRM. Clayton and Dubilier Inc and senior management of a unit of Borg-Warner Corp <BOR> said it will form a new company to buy Borg-Warner's industrial products group for about 240 mln dlrs. Borg-Warner industrial products has sales of about 300 mln dlrs from three divisions, which provide advanced technology fluid transfer and control equipment, systems and services worldwide, Clayton said. The new company will have 3,000 employees and be headquartered in Long Beach, Calif., the company said. Peter Valli, vice president of Borg-Warner Corp and president of its industrial products division, will become president and chief executive officer of the new company, according to Clayton. Clayton, a private investment firm, said this was the third mangement buyout of a divestiture completed by them since December 1986.  
BORG-WARNER <BOR> TO SELL UNIT FOR 240 MLN DLRS. Borg-Warner Corp said it agreed to sell its industrial products group to <Clayton and Dubilier Inc> and senior management of the group, for about 240 mln dlrs. Clayton and Dubilier is a New York-based private investment firm, which has completed two other management-led buyout transactions since December 1986. Borg-Warner's industrial products group, based in Long Beach, California, has sales of about 300 mln dlrs and employs about 3,000 staff. Its businesses include standard and custom engineered centrifugal pumps and mechanical seals for the petroleum industry and advanced controls for the aerospace and defense industries. The sale is part of Borg-Warner's planned restructuring. the proposed sale is subject to approval by Borg-Warner's directors, it said.  
GUARDIAN-MORTON SHULMAN AGREES TO TAKEOVER BID. <Guardian-Morton Shulman Precious Metals Inc> said Morton Shulman and Guardman Investment Management Services Inc agreed in principle for Andrew Sarlos to make a takeover bid for all special shares and series II warrants of Guardian-Morton, subject to regulatory approval and completion of definitive documentation. Guardman Investment, current manager and owner of all common shares of Guardian-Morton, also agreed to sell the common and its management agreement to a company controlled by Sarlos if the takeover bid is successful, Guardian-Morton said. Price to be offered for the Guardian-Morton special shares under the takeover bid will be 90 pct of the net asset value of the special shares at the time of the bid, and two dlrs for each series II warrant, the company said. Guardian-Morton said the takeover bid will be conditional on Sarlos acquiring at least 90 pct of the special shares and 90 pct of the series II warrants, when combined the number of special shares and warrants owned by the offeror at the time of the bid. Investment companies managed by Sarlos currently own slightly less than 10 pct of Guardian-Morton's special shares.  
INTERNATIONAL AMERICAN <HOME> SETS ACQUISITION. International American Homes inc said it has contracted to acquire <Diversified Shelter Group Ltd> for about 11,850,000 dlrs to be paid 73 pct in cash and 27 pct in International American common stock to be valued on a 30 day trading average prior to closing. It said the price is based on Diversified's estimated 3.2 mln dlrs pro forma pre-tax earnings for 1986 after adjustment for certain non-continuing expenses. Diversified, a developer of single family housing in the Atlanta market, had 1986 revenues of about 25.3 mln dlrs. The acquisition if subject to International American arranging financing.  
DAINIPPON INK TO INVEST IN QUIXOTE <QUIX>. Quixote Corp said Dainippon Ink and Chemicals Inc of Japan will buy 526,315 shares of Quixote common stock, a 6.7 pct stake, for 10 mln dlrs, or 19 dlrs a share. It said the two companies also agreed to share the results of their research and development activities in optical disc technology. Dainippon Inc's optical disc technology focuses on the development of a new Direct-Read-After-Write optical disc and an advanced erasable optical disc. Quixote said its wholly owned subsidiary, LaserVideo Inc, is making advancements in the art of mastering and manufacturing Compact Discs, CD-ROMs and laser-read videodiscs. Quixote said the agreement with Dainippon, which has annual sales of more than two billion dlrs, provides for a Dainippon representative to sit on the LaserVideo board of directors.  
KNOLL TO BUY AMERICAN SAVINGS <AAA> SHARES. American Savings and Loan Association of Florida said <Knoll International Holdings Inc> has offered to purchase 500,000 new shares of American Savings for 10 mln dlrs, and the board has accepted Knoll's offer. Knoll already owns 796,413 shares or 9.9 pct of American Savings. American Savings said the purchase will resolve a previously-announced disagreement between American Savings and the Federal Home Loan Bank of Atlanta on the replacement of the capital American Savings used to repurchase common shares in January 1985 from former chairman Marvin L. Warner. It said completion of the transaction would give Knoll 15 pct ownership in American Savings. American Savings said Knoll also had talks with chairman of the executive committee Shepard Broad and chairman Morris Broad on the purchase of their American Savings shares as well at 20 dlrs each but no agreement was reached. American Savings said The company said Knoll's offer to buy the new shares is not conditioned on other purchase of common stock from any person or entity. It said its previously-announced engagement of Salomon Inc <SB> to evaluate alternatives to enhance shareholder values, including the possible sale of American Savings, is still being actively pursued.  
MERRILL LYNCH<MER> CANADA MULLS BUYING BROKER. Merrill Lynch Canada Inc, wholly owned by Merrill Lynch and Co, is considering acquiring another Canadian securities company as the result of federal and provincial government moves to lift investment dealer ownership restrictions on June 30, according to a published report. "We're talking to a number of people," Merrill Lynch Canada deputy chairman E. Duff Scott told The Toronto Star. "Whether we're going to do something, I don't know," he said. A Merrill Lynch Canada spokesman declined to comment on the newspaper report when queried. Scott did not disclose which investment dealers Merrill Lynch Canada was considering acquiring, but the Toronto Star quoted unidentified industry sources as saying serious discussions have already been held with Burns Fry Ltd. Burns Fry chairman Jack Lawrence told the newspaper the investment dealer has not made a final decision, but was examining "three or four alternatives." Discussions between brokers about possible mergers is to be expected pending industry deregulation, one investment industry source, who asked not to be named, told Reuters. "It's silly not to take a look (at making a merger or acquisition). If you're a businessman, you have to take a look," the industry source said. Under federal and provincial government regulations expected to be in place by June 30, banks, trust companies and foreign companies will be allowed to acquire existing investment dealers or establish their own securities subsidiaries.  
MOST AMERICAN AGGREGATES <AMAG> STOCK ACQUIRED. <Consolidated Gold Fields PLC>'s ARC America Corp subsidiary said it has acquired 7,521,643 American Aggregates Corp shares, about 95 pct of those outstanding, as a result of its tender offer which expired February 27. As soon as is practicable, ARC America will acquire American Aggregates, converting the company's remaining shares into the right to receive 30.625 dlrs a share.  
BIOTECH CAPITAL <BITC> TO BUY MAGAZINE. Biotech Capital Corp said it agreed to buy High Technology magazine from the Goldhirsh Group of Boston. Terms were not disclosed. The magazine publishes information about emerging technologies and their impact on business. It has a circulation of 200,000 and is the largest of its kind in the world, the company said.  
LEADER <LDCO> BUYS PETROSURANCE STAKE. Leader Development Corp said it has purchased 300,000 shares of convertible preferred stock in <Petrosurance Inc> for 1,500,000 dlrs in cash and real estate. Petrosurance specializes in property and casualty insurance for the oil industry. Leader said the stock is convertible into a Petrosurance common. Leader said it already owns 12.5 pct of Petrorusrance and conversion would give it about 45.0 pct. The company said Petrosurance will use the sale proceeds to support growth and improve the structure of its reinsurance treaties to retain a larger part of premiums written.  
INSTINET <INET> SETS MEETING ON MERGER. Instinet Corp said its board has scheduled a special shareholders' meeting for May 21 to vote on its proposed merger into Reuters Holdings PLC <RTRSY>. It said shareholders of record as of April 10 will be eligible to vote at the meeting. Instinet said the meeting date is subject to adjustment, based on the length of time needed for the U.S. Securities and Exchange Commission to complete its review of the filing of merger proxy materials, which Instinet expects to make before the end of March. Instinet said the filing of the preliminary merger proxy materials is tied to the finalization of audited financial statements of Instinet and Reuters for 1986. Under a merger agreement entered into in November, Reuters tendered for up to 5.10 mln Instinet common shares, or about 45 pct of those not already owned by Reuters. As a result of the tender, Reuters now owns about 49 pct of Instinet shares. In the merger, holders of remaining Instinet shares will receive 8.50 dlrs of Reuters American Depositary Shares for each Instinet share. The ADS's will be valued at the average of their closing prices in the 10 trading days before the effective date of the merger. Instinet said it expects the merger to become effective as soon as possible after shareholder approval at the special meeting.  
UNION PACIFIC SAYS WILL SIGN PACT IN CARACAS ON MARCH 17 FOR SALE OF HALF ITS CORPUS CHRISTI REFINERY.  UNION PACIFIC SAYS WILL SIGN PACT IN CARACAS ON MARCH 17 FOR SALE OF HALF ITS CORPUS CHRISTI REFINERY  
CYACQ OFFERS TO RAISE CYCLOPS BUYOUT TO 92.50 DLRS/SHR FROM 80 DLRS.  CYACQ OFFERS TO RAISE CYCLOPS BUYOUT TO 92.50 DLRS/SHR FROM 80 DLRS  
WASTE MANAGEMENT SAYS WAITING PERIOD ENDS ON ITS CHEMLAWN BID.  WASTE MANAGEMENT SAYS WAITING PERIOD ENDS ON ITS CHEMLAWN BID  
WAITING PERIOD ENDS ON WASTE MANAGEMENT<WMX> BID. Waste Management Inc said it received notice of early termination of the Hart-Scott-Rodino waiting period for its 270 mln dlr takeover bid for Chemlawn Corp <CHEM>. The waiting period was terminated March 11, Waste Management said. Chemlawn has rejected Waste Management's 27 dlrs a share bid. It has said it was talking with other parties about selling its business.  
INVESTORS TO RAISE CYCLOPS <CYL> TENDER PRICE. Cyacq Corp, an investor group bidding for Cyclops Corp, said it would raise its outstanding tender offer price for Cyclops common to 92.50 dlrs a share from 80 dlrs, if certain conditions were met. The increased offer would exceed the 90.25 dlrs a share price offered by Dixons Group PLC in a tender offer for Cyclops that is part of a definitive agreement to acquire the Pittsburgh-based maker of carbon tool and specialty steel products. Cyacq includes Audio/Video Affiliates Inc and Citicorp Capital Investors Ltd and other investors. Cyclops has about 4.1 mln shares outstanding. For the tender price to be raised, Cyclops must provide Cyacq with all non-public information provided to Dixons Group and Cyacq must be satisfied with financial projections made in offering material by Dixons based on the information, Cyacq said. Additionally, Dixon Group's rights to buy Cyclops common and its rights to fees or expenses if the Dixon-Cyclop merger agreement is broken must be rescinded, Cyacq said. Cyacq said financial projections it developed for Cyclops were materially lower than the financial projections provided by Cyclops to Dixons Group. A Cyclops spokeswoman said the company had no details of the new Cyacq proposal and could not comment. "We have nothing in hand," she said. In addition to making specialty metal products, Cyclops also operates about 115 specialty stores that sell consumer electronics products. The stores are located in 17 states concentrated in the Northeast, Northwest and Southwest. Cyclops employs about 8,900 people in Pennsylvania, Ohio and other states. It also has interests in non-residential construction. In 1986, Cyclops earned 21.3 mln dlrs or 5.26 dlrs a share on sales of 1.5 billion dlrs, compared to 1985 earnings of 26.2 mln dlrs or 6.20 dlrs on sales of 1.4 billion, the spokeswoman said. The agreement with Dixons Group calls for Cyclops's steel and construction businesses to be sold to a unit of Alleghany Corp <Y> for about 110 mln dlrs once the merger is completed. A Cyacq spokesman said the new conditional tender price would be all cash. He had no comment on whether Cyacq plans to withdraw its current offer, which is scheduled to expire midnight on March six. Dixon Group's offer extends to March 17.  
SECURITY PACIFIC <SPC> BUYS ORBANCO <ORBN>. Security Pacific Corp said it completed its previously announced acquisition of Orbanco Financial Services Corp after receiving federal approval of the deal. Security Pacific said the Federal Reserve Board approved on Wednesday its purchase of the Portland, Ore.-based bank holding company and financial services concern. The purchase of Orbanco, for about 47 mln dlrs in cash and common stock, will be effective in 30 days, a Security Pacific spokeswoman said. Terms call for each share of Orbanco common stock to be exchanged for about 14 dlrs of Security Pacific common stock, plus 1.50 dlrs cash. Each share of Orbanco's 100-dlr par value preferred stock will be exchanged for 100 dlrs cash, plus accrued dividends. Orbanco, with one billion dlrs in assests, is the holding company for the Oregon Bank, Orbanco Real Estate Service Co, American Data Service Inc and Orbanco Securities Corp. Security Pacific now has four major regional bank purchases outside California completed or pending. Security Pacific bought The Arizona Bank, with assets of four billion dlrs, in the fourth quarter of 1986. Pending approval currently is the purchase of Rainier Bancorporation <RBAN>, with assets of 9.2 billion dlrs. In anticipation of legislative changes that take effect in 1989, Security Pacific has also negotiated the future purchase of The Nevada Bank, with assets of 615 mln dlrs. Security Pacific is the sixth largest U.S. bank holding company, with assets of about 61.60 billion dlrs.  
BANCROFT <BCF> SUES ZICO. Zico INvestment Holdings INc said that Bancroft Convertible Fund Inc filed suit seeking to enjoin Zico's 30 dlr-a-share tender offer for 500,000 Bancroft shares. In its complaint, Bancroft said the tender offer materials and letters to shareholders are false and misleading and that the tender offer violates the investment company act of 1940. Zico said the suit is totally without merit and vigorously intends to contest it. A motion is scheduled to be heard on March 16.  
MILLIPORE <MILI> ACQUIRES EQUITY IN PROTEIN. <Protein Databases Inc> said Millipore Corp through its venture capital subsidiary, Millicorp, acquired an equity position in the company. Protein said it and Millipore intend to establish an "interactive relationship." No other details were disclosed about the amount of Millipore's investment in Protein.  
MERRILL LYNCH <MER> FIRES VASKEVITCH. Merrill Lynch and Co Inc fired the head of the mergers department in its London office today, saying he had been unable to provide a "satisfactory explanation" in response to insider trading charges filed yesterday by the Securities and Exchange Commission. Merrill had suspended the official, Nahum Vaskevitch, yesterday saying at the time it was "disappointed and angry" if the SEC charges are true. Merrill Lynch's statement at midday today said the firm will continue to cooperatie fully with authoriteis in the U.S. and London investigating Vaskevitch's activities.  
BLUE GASS BREEDERS <BLGR> COMPLETES ACQUISITION. Blue Grass Breeders Inc said it has completed the acquisition of Equine Enterprises Inc for four mln common shares. It said it is obligated to deliver another 2,741,660 shares on the attainment of a certain level of shareholders' equity during any fiscal quarter within 12 months of closing. If all the contingent shares are issued, Blue Grass said former owners of Equine will have a 75 pct interest in Blue Grass. Equine is a New Mexico quarter horse breeding and racing company.  
PUROLATOR <PCC> DIRECTOR QUITS OVER BUYOUT. A Purolator Courier Corp director resigned from the company's board, saying he plans to take steps to make or find an offer that tops the 265 mln dlr buyout deal already accepted by Purolator's board, the company said. The director, Doresy Gardner, resigned in a March 10 letter to the Purolator board, which was included in a filing made by the company to the Securities and Exchange Commission. Gardner noted that the terms of the merger agreement in which the company would bought out by a group of its managers and E.F. Hutton LBO Inc bar directors from taking action to solicit, initiate or encourage acquisition proposals. "I, as a shareholder, wish to solicit, initiate or encourage such an offer or indication of interest, and believe, therefore, that I should resign as a director of the corporation," Gardner said in the letter. "Accordingly, I hereby resign as a director of Purolator Courier Corp, effective immediately," he said. Gardner said he believes shareholders could get a better deal than the buyout offer if the company would agree to be sold to some other entity, or if it could sell off all or part of its U.S. courier division. On March 4, another Purolator shareholder, Rodney Shields, filed a class action suit on behalf of the company's shareholders charging the company and its board with breaching their fiduciary duty by failing to take steps to ensure that shareholders got the highest possible price in the buyout. The deal would give shareholders 35 dlrs a share in cash if just 83 pct of Purolator's 7.6 mln shares are tendered. If more are tendered, they would receive 29 dlrs in cash and six dlrs in debentures and a warrant to buy stock in the new company in exchange for each share.  
CENTURY TELEPHONE <CTL> TO SELL PROPERTIES. Century Telephone Enterprises Inc said it has accepted an offer to sell its cable television properties in Michigan, Tennessee, Florida, Arkansas and Louisiana for a "substantial" gain. The company said details were not disclosed.  
DESOTO <DSO> SELLS INDUSTRIAL CHEMICAL ASSETS. DeSoto Inc said it sold the plant, inventory and certain other assets of some of its industrial chemical operations to Plastic Specialities and Technologies Inc, a privately-held company headquartered in Parsippany, New Jersey.  Terms were not disclosed. Desoto's industrial chemical operations are based in Fort Worth, Texas, and has annual sales of about 17 mln dlrs.  
CYTRX <CYTR> UNIT BUYS SWEDISH COMPANY. CytRx Corp said its 60 pct owned CytRx Biopool Ltd subsidiary has acquired Biopool AB of Umea, Sweden, for undisclosed terms. It said former shareholders of Biopool AB own the remaining 40 pct in CytRx Biopool Ltd. Biopool AB develops cardiovascular and fibrinolytic products for diagnostic applications. The company said CytRx Biopool is studying the possible combination of CytRx Corp's RheothRx drug to reduce platelet aggregation and viscosity in blood with Biopool AB's drug t-PA for dissolving blood clots.  
INVESTORS UP INTERMEDICS <ITM> STAKE TO 16.8 PCT. A group of investment firms told the Securities and Exchange Commission they raised their stake in Intermedics Inc to 1,721,900 shares, or 16.8 pct of the total outstanding, from 1,565,900 shares, or 15.2 pct. Bessemer Securities Corp, a New York investment firm, Cilluffo Associates L.P., a New York investment partnership, and related entities said they bought 156,000 Intermedics common shares between February 24 and March 9 for 1.4 mln dlrs.  
FIRST GRANITE BANCORP INC AGREES TO BE ACQUIRED BY MAGNA GROUP INC FOR STOCK.  FIRST GRANITE BANCORP INC AGREES TO BE ACQUIRED BY MAGNA GROUP INC FOR STOCK  
FIRST GRANITE <FGBI> AGREES TO BE ACQUIRED. First Granite Bancorp Inc said it agreed in principle to become a wholly owned subsidiary of Magna Group Inc <MAGI>. Under terms of the agreement, First Granite shareholders will receive 2.175 shares of Magna for each First Granite share held. First Granite shareholders will be asked to approve the tranaction in late summer. First Granite, which has 675,000 shares outstanding, as of Dec 31, 1986 had assets of 186.5 mln dlrs. It owns First Granite City National Bank and Colonial Bank of Granite City, Ill. Magna Groups as of Dec 31, 1986 had assets of 1.47 billion dlrs. It owns 13 banks, a data services company, a mortgage company and a trust company, serving St. Louis as well as Springfield, Centralia and Decatur, Ill.  
ALLEGHNEY INTERNATIONAL <AG> FACES ADDED COUNT. Alleghney International Inc said the plaintiffs in the existing lawsuits opposing its sale requested an amendment to their complaint to include a class action count. Alleghney said the suit, filed in the U.S. District Court for the Western District of Pennsylvania, was aimed at blocking the sale of Alleghney to an affiliate of First Boston Inc. Allegheney said the additional count sought by the plaintiffs alleges the price to be offered for AI's common stock, 24.60 dlrs, is grossly unfair and one the purposes of the proposed sale is to absolve the individual defendants of liability in the lawsuit. The additional count among other forms of relief, requests an injunction against the defendants from taking any steps to accomplish the proposed sale, Alleghney said.  
TALKING POINT/PUROLATOR COURIER CORP <PCC>. Purolator Courier corp's stock rose on specualtion that a disgruntled former Purolator director would find a new suitor for the company, traders said. Purolator agreed in late February to a 35 dlr-a-share, 265 mln-dlr offer from E.F. Hutton LBO Inc and certain members of its Purolator courier division's management. The stock today hit 36-1/4, up one. Today, Purolator revealed in a filing with the Securities and Exchange Commission that director Doresy Gardner resigned from its board of directors in a letter dated March 10. The letter from Gardner said he resigned the board because the merger agreement with Hutton barred directors from soliciting new offers and he believes shareholders might get a better deal. Gardner said he believes a better offer might be found if the company would agree to be sold to some other entity, or if it could sell off all or part of its U.S. courier division. "Basically, (the courier division) is a company that has 450 mln dlrs in revenues. It's a very large company and it's being sold for 50 or 60 mln dlrs," said Gardner in a telephone interview with Reuters. Gardner is an official of Kelso Management, a firm associated with Fidelity International Ltd. A group of Fidelity companies owns eight pct of Purolator, and Gardner said he personally owns 20,000 shares. A Purolator official said the company has no comment on the letter from Gardner. Arbitragers speculated another overnight messenger service may emerge as a likely bidder for Purolator. Before the transaction with Hutton LBO was announced, analysts had also speculated another courier company would be the most likely suitor. While one arbitrager acknowledged there in fact may be no new bidders, he said the possibility one could appear pushed the stock into play again. "There's no shortage of possibilities. It's just a question of management's willingness to let the process continue," said one arbitrager. Arbitragers said a new buyer might be found because they believe Hutton LBO has taken on no risk in the transaction. Hutton has begun a tender for 83 pct of Purolator at 35 dlrs cash per share. The balance of Purolator's stock will be bought for securities and warrants in a new company holding the U.S. courier operations. The arbitragers said tender offer documents show that Hutton does not need to use its cash in the transaction and will emerge with a giant, majority equity interest in Purolator. "As far as I can tell from the public documents from the deal that's on the table, Hutton is basically putting up zero. One always likes a situation like that. You always like to think if they can do this deal at no risk, there should be someone else in the world that could do it higher," said one arbitrager. The firm, however, is supplying temporary financing, and sources close to the transaction disputed the claim that the firm will not end up paying for its equity position. While one scenario mentioned in the tender offer document did note that the E.F. Hutton Group subsidiary may not have to keep cash in the transaction, the sources said there is some risk to the firm. "There are a variety of contingencies and restricted cash, and all sorts of things that make it very speculative," said one of the sources, adding there are also severance payments to employees. The E.F. Hutton Group subsidiary is supplying 279 mln dlrs in so-called "bridge" financing for the transaction. The bridge financing is a temporary loan from Hutton. The financing is to be replaced with permanent financing, expected to come from banks. However, it may take some time to replace the financing, the source said, resulting in what could be a substantial expense to the firm. Gardner said Hutton stands to gain fees of 10 to 20 mln dlrs from the transaction, but sources close to the transaction said fees are at the low end of the scale. "It's a very complex transaction, but basically what happens is they ostensibly put up money but the fees recapture any investment they might have once the merger takes place," Gardner said.  
WEINBERGER OPPOSES FUJITSU BUYING U.S. FIRM. Defense Secretary Caspar Weinberger will join Commerce Secretary Malcolm Baldrige in fighting Fujitsu Ltd's <ITSU.T> plan to buy 80 pct of <Fairchild Semiconductor Corp>, Pentagon officials said. "He (Weinberger) opposes it. It is not in the best interests of the country to have more of the micro-electronics business leaving the United States," one of the Pentagon officials, who asked not to be identified, told Reuters. Commerce Department officials told Reuters yesterday that Baldrige opposed the planned sale and that the White House Economic Policy Council will take up the matter within weeks. Commerce and defense officials said Baldrige and Weinberger feared the U.S. military is already leaning too heavily on foreign electronic support. But the Defense Department also said today that Weinberger and Baldrige differed on the proposed sale of U.S. computer equipment to Iran. The Commerce Department advised the Pentagon recently that defense objections to two proposed sales -- to an Iranian power company and the Islamic Republic of Iran News Agency -- were not valid and the sales of small and medium computers would go through unless more evidence was presented.  
SAFEGUARD SCIENTIFIC <SFE> IN EQUITY DEAL. Safeguard Scientifics Inc said it made a 2.5 mln dlr equity investment in <Sanchez Computer Associates Inc>, a private computer software firm based in Malvern, Pa. Safeguard said the investment gives it a "major ownership position" in Sanchez, which specializes in software products for financial institutions.  
<SUMMIT PETROLEUM CORP> SELLS SHARES. Summit Petroleum Corp said it sold 11.3 mln shares, or 29.4 pct, of its common stock to <Halbert and Associates Inc>. The company said the shares were previously held by <Consolidated Energy Corp> and Harken Oil and Gas Inc <HOGI>. In addition, David D. Halbert, president and chief executive officer of Halbert, an Abilene investment firm, was named chairman and chief executive of Summit, the company said. Halbert, Charles M. Bruce and James O. Burke were also named directors, expanding the board to five, Summit added. The company said Burke is president and chief executive of <Allied Comprehensive Health Inc>, Abilene, while Bruce is a partner in the Washington law firm of Butler and Binion. Summit said it intends to actively seek acquisitions to increase its asset base.  
ALLIED-LYONS SEES NO CHANGE IN HIRAM WALKER STAKE. Allied-Lyons PLC <ALLD.L> and Canada's Reichmann brothers are working well together as partners and currently do not plan any change in their joint ownership of distiller Hiram Walker-Gooderham and Worts, Allied-Lyons chairman Derrick Holden-Brown said. Allied-Lyons got 51 pct control of Hiram Walker-Gooderham last year for about 600 mln U.S. dlrs, while the Reichmanns' <Gulf Canada Corp> acquired 49 pct in an out-of-court pact after a hostile battle for the wine and spirits division of <Hiram Walker Resources Ltd>. "We are getting along very well as partners ... I hope there won't be any change, but there could be," Holden-Brown told reporters after a speech in Toronto. He said Allied-Lyons has a two-year call option that could force Gulf Canada to sell its 49 pct stake to Allied-Lyons, and Gulf Canada has a two-year put option that could obligate Allied-Lyons to buy its 49 pct. "Both we and Gulf hope very much there will be no occasion for either the put or call to be exercised," Holden-Brown said. In answer to a reporter's question, Holden-Brown said it would be possible for Gulf Canada to sell off part of its 49 pct in a public offering with Allied-Lyons' consent. "I don't think we would have any objection to it," he added. Allied-Lyons maintains control of Hiram Walker-Gooderham's board of directors and has total responsibility for its management. "We cannot contemplate giving up our control," he said. Holden-Brown would not disclose how big a profit contribution the distiller will make in Allied-Lyons' financial results, but he said "it will be substantial." "I am not able to give profit forecasts," he said. Holden-Brown said Allied-Lyons was able to finance the Hiram Walker-Gooderham acquisition with cash and borrowings, and has no current plans for a stock issue. He said the company is not currently negotiating any more acquisitions in Canada but has a team of officials evaluating possible purchases of wines, spirits, soft drinks or food concerns. "I don't think we shall be looking at the brewery scene (which is) highly concentrated already," he added. Holden-Brown said Allied-Lyons plans to list its shares on Canadian stock exchanges, possibly later this year.  
PRINCEVILLE <PVDC> TO SELL ITS AIR OPERATION. Princeville Development Corp and <Aloha Inc>, parent of Aloha Airlines Inc, jointly said they agreed to terms for the sale of Princeville Airways Inc to Aloha. Terms of the agreement were not disclosed. Under the proposed sale, the companies said Aloha would acquire the entire Princeville Airways commuter operation and access to the Princeville Airport on the island of Kauai. They said Princeville Airways is expected to operate as a subsidiary of Aloha Inc and will continue to use the Princeville Aiways name.  
NEW HAMPSHIRE SAVINGS <NHSB> TO BUY BANK. New Hampshire Savings Bank Corp said it agreed to buy <Seashore Bankshares Inc> in an exchange of stock. According to the terms of the deal, it said Seashore's 61,000 shares will be exchanged for 9.8 mln dlrs of New Hampshire Savings stock. It said Seashore Bankshares has assets of about 46 mln dlrs.  
COURT LIFTS RESTRAINING ORDER ON MARK IV <IV>. Baird Corp <BATM> said the Massachusetts State Court for Suffolk County has lifted a temporary restraining order prohibiting Mark IV Industries Inc from further purchases of Baird stock. According to filings with the Securities and Exchange Commission, Mark IV owns at least 17.6 pct of Baird's stock and may attempt to acquire Baird, Baird said. Baird said the court also issued an order enjoining Baird from enforcing the Massachusetts Anti-Takeover Statute against Mark IV industries.  
EAGER TECHNOLOGY ACQUIRES NUCLAD. <Eager Technology Inc> said it signed a letter of intent to acquire Nuclad Inc, a private Colorado corporation, and its subsidiaries. Terms of the acquisition were not disclosed.  
INTERCONNECT OFFERS TO BUY GATES LEARJET <GLJ>. <Interconnect Capital Corp> said it sent a letter to the board of Gates Learjet Corp, offering to buy the company for 7.07 dlrs a share. Gates Corp, which owns 64.8 pct of Gates Learjet, agreed earlier this week to sell its shares to a partnership formed by privately-held <Cobey Corp> and a unit of Bear Stearns Cos Inc <BSC> for 6.50 dlrs a share or 51 mln dlrs. The proposal is subject to approval by Gates Learjet's board. A spokesman for privately-held Interconnect said it made the new proposal to Gates Learjet's board, but would not say if it had held talks with the parent company's board.  
SEAL <SINC> ACQUIRES ADEMCO LTD. Seal Inc said it acquired Ademco Ltd, a United Kingdom company which distributes mounting and laminating equipment and supplies, for a combination of cash and stock valued at 2.6 mln dlrs, based on current exchange rates. Seal said it will pay up to an additional 1.3 mln dlrs contingent on the market price of Seal's common on December 31, 1988, and on certain earnings targets by the acquired business.  
CANNON <CAN> SELLS LIBRARY TO WEINTRAUB. WEintraub Entertainment Group Inc said it agreed to acquire Cannon Group's Screen Entertainment film library. The library was purchased in May 1986 as part of Cannon's acquisition of Screen Entertainment Ltd from Bond Corp Holdings Ltd. The library has over 2,000 theatrical motion pictures. Terms call for the price to be established through an appraisal process beginning immediately and not to exceed 175 mln dlrs or be below 125 mln dlrs.  
GERBER <GRB> BUYS GERBER SYSTEMS <GSTI> SHARES. Gerber Scientific Inc said its GST Acquisition Corp purchased 444,646 shares of its 84 pct owned Gerber Systems Technology pursuant to a January 15 tender offer. Following the purchase, Gerber made a capital contribution to GST of all the shares it owned resulting in 95.6 pct ownership by GST.  
PRICE <PCLB> TO BUY 80 PCT OF TSS-SEEDMAN. Price Co said it agreed to buy at least 81 pct of the stock of <TSS-Seedman's INc> for about 50 mln dlrs. The terms envision a purchase of the entire company, it said. The transaction is expected to close at the end of April.  
HEARST BUYS HOUSTON CHRONICLE FOR 400 MLN DLRS. The <Hearst Corp> is buying the Houston Chronicle from Houston Endowment Inc for 400 mln dlrs. The announcement was made jointly by Frank Bennack Jr, president and chief executive officer of Hearst, and Richard Johnson, president of the Chronicle. The Houston Endowment is selling the paper to comply with federal tax laws requiring charitable institutions to divest themselves of profit-making subsidiaries by 1989. The Chronicle has a daily circulation of over 425,000 and is in competition with the Houston Post, owned by the <Toronto Sun Publishing Corp>, with a circulation of about 316,000. The acquisition gives Hearst its biggest newspaper holding in Texas, where the California-based publisher already owns papers in San Antonio, Beaumont and Laredo. The chain also owns, among others, the flagship San Francisco Examiner, the Los Angeles Herald Examiner and the Seattle Post-Intelligencer.  
IEL'S ACMEX UNIT TO BID FOR CHEETHAM. <Industrial Equity Ltd> (IEL) unit <Acmex Holdings Ltd> said it proposed to make a formal takeover offer for all the issued capital of <Cheetham Ltd>, a producer of salt, animal feed and seeds. Acmex said in a statement it would offer one share for every two Cheetham shares or 3.40 dlrs cash for each share. Acmex said it was presently entitled to 5.1 mln Cheetham shares or 16.85 pct of its 30.27 mln issued shares. The scrip offer values Cheetham at about 110 mln dlrs, based on Acmex's current price of 7.20 dlrs, and the cash offer at about 104 mln. Cheetham last traded at 3.10 dlrs.  
COUNTY INCREASES TESCO STAKE IN HILLARDS. <County Ltd>, which is acting in concert with Tesco Plc <TSCO.L> in its 151.4 mln stg for supermarket chain operator <Hillards Plc>, has purchased 300,000 Hillards ordinary shares at 316p per share, a statement said. These purchases, together with those made by County on 10 March, represent about 4.8 pct of Hillards issued ordinary share capital, it said. Tesco's offer, made on March 10, values each Hillards ordinary share at 305.5p, a 37.6 pct premium over the previous day's  closing price. A cash alternative of 290.55p will be made available.  
JAPAN REJECTS U.S. OBJECTIONS TO FAIRCHILD SALE. A Foreign Ministry official dismissed arguments made by senior U.S. Government officials seeking to block the sale of a U.S. Microchip maker to a Japanese firm. "They appear to be linking completely unrelated issues," Shuichi Takemoto of the Foreign Ministry's North American Division told Reuters. U.S. Commerce Secretary Malcolm Baldrige has asked the White House to consider blocking the sale of <Fairchild Semiconductor Corp> to Japan's Fujitsu Ltd <ITSU.T>, U.S. Officials said yesterday. Baldrige expressed concern that the sale would leave the U.S. Military dependent on a foreign company for vital high technology equipment. Pentagon officials said Defence Secretary Caspar Weinberger also opposes to the sale. U.S. Officials have also said the sale would give Fujitsu a powerful role in the U.S. Market for supercomputers while Japan's supercomputer market remains closed to U.S. Sales. Takemoto said national security should not be an issue since the planned purchase of Fairchild from its current owner, Schlumberger Ltd <SLB>, does not include Fairchild's main defence-related division. In addition, Takemoto said tension over the supercomputer trade should not affect the sale as Fairchild does not make supercomputers. Analysts noted that Fairchild does make sophisticated microchips used in supercomputers. Fujitsu makes similar chips and supplies them to U.S. Supercomputer makers, they said. Takemoto also dismissed U.S. Fears that the proposed takeover would violate U.S. Antitrust law, saying "the purchase would not result in Fujitsu monopolising the U.S. Semiconductor market." Two separate issues appear to have come together to boost pressure to block the purchase, industry analysts said. The move is in part an attempt to force Japan to open its domestic market to more U.S. Supercomputer sales, they said. U.S. Officials have repeatedly charged that the Japanese public sector is closed to U.S. Supercomputer sales despite U.S. Firms' technological lead in the field. "The United States believes Japan will only react when bullied, and this is a bullying ploy," Salomon Brothers Asia analyst Carole Ryavec said. However, the analysts said more is at stake than supercomputer sales as the U.S. Fears it is losing its vital semiconductor industry to Japanese competitors. "The real issue is xenophobia in (the U.S.) Silicon Valley," said Tom Murtha of brokerage James Capel and Co. U.S.-Japanese tension over the semiconductor trade has failed to subside despite recent efforts by Japan's Ministry of International Trade and Industry (MITI) to get Japanese firms to abide by a bilateral pact aimed at halting predatory pricing and opening Japan's market. A MITI official said that while Japan is faithfully abiding by the agreement, problems remain in halting the sale of microchips in Europe and Southeast Asia at prices below those set by the pact. "It is only a matter of time before we solve this problem," he told Reuters. Despite the furore, Fujitsu will proceed with talks on the acquisition in line with the basic agreement reached with Schlumberger last year, a Fujitsu spokeswoman told Reuters.  
MANNESMANN CONSIDERING MAJORITY STAKE IN FICHTEL. A Mannesmann AG <MMWG.F> spokesman said the company has lodged an application with the Federal Cartel Office for approval of a possible majority stake in car parts company <Fichtel und Sachs AG>. He described the application as a precautionary move and said no agreement on buying a majority stake had yet been reached. Until now Mannesmann has said only that it wanted to buy a 37.5 pct stake in Fichtel from the heirs of Ernst Wilhelm Sachs, the grandson of the firm's founder. The spokesman declined to say from whom it may buy the other shares to create a majority stake in the firm. Fichtel's other principal shareholders are Commerzbank AG <CBKG.F>, with 35.01 pct, and Salzgitter AG <ISLG.F>, with 24.98 pct. Spokesmen declined to comment directly on the possibility of selling Fichtel shares to Mannesmann. Mannesmann said in January it hoped to take a 37.5 pct stake in Fichtel's holding company Sachs AG in the first quarter. Last week a spokesman said Mannesmann had a letter of intent on the 37.5 pct stake but completion was being delayed by legal questions surrounding the inheritance.  
FIRST BOSTON <FBC> STARTS ALLEGHENY <AG> BID. First Boston Inc said it has started its previously-announced tender offer for all common shares, 2.19 dlr cumulative preference shares and 11.25 dlr convertible preferred shares of Allegheny International Inc at 24.60 dlrs, 20.00 dlrs and 87.50 dlrs respectively. In a newspaper advertisement, the company said the offer and withdrawal rioghts will expire April Nine unless extended. The offer is conditioned on receipt of at least a majority of Allegheny voting power on a fully diluted basis and on receipt of at least two thirds each of the preference and preferred shares. A merger approved by the Allegheny board in which remaining common, preference and preferred shares would be acquired at the tender prices is to follow the offer. Receipt of the minimum amounts under the offer would give First Boston sufficient voting power to assure approval of the merger without the affirmative vote of any other shareholder, the company said.  
SERVICE CONTROL BIDS FOR AMERICAN SERVICE. <Service Control Corp> said it has started a tender offer for all shares of <American Service Corp> at 37 dlrs each. In a newspaper advertisement, the company said the offer and withdrawal rights expire April Nine unless extended.  The American Service board has approved the offer, which is to be followed by a merger at the same price. Service Control said the offer is conditioned on receipt of at least 534,806 shares.  It said holders of 534,819 shares have agreed to tender their shares under the offer and have granted Service Control an option to buy them at 37 dlrs each.  
BENEFICIAL CORP TO SELL WESTERN NATIONAL LIFE FOR 275 MLN DLRS.  BENEFICIAL CORP TO SELL WESTERN NATIONAL LIFE FOR 275 MLN DLRS  
CAESARS WORLD INC SAID BOARD REJECTS MARTIN SOSNOFF TENDER.  CAESARS WORLD INC SAID BOARD REJECTS MARTIN SOSNOFF TENDER  
CAESARS WORLD <CAW> REJECTS SOSNOFF'S OFFER. Caesars World Inc said its board unanimously rejected a 28 dlr a share takeover offer by New York investor Martin T. Sosnoff. Caesars said Sosnoff's offer to by all its outstanding shares of common stock was inadequate and not in the best interests of its shareholders. The company recommended that shareholders reject Sosnoff's offer, made through his <MTS Acquisition Corp>, and not tender any of their shares. Caesars said it will explore a variety of alternative transactions but did not elaborate. Caesars, in a brief statement, did not say whether it would seek to buy back its shares held by Sosnoff. A Caesars spokesman said the company would not comment further on its decision. On Wednesday, Sosnoff told the Securities and Exchange Commission that he controls 13.6 pct of the company's stock. Sosnoff also informed the SEC that Caesars had offered to buyout his holdings several times during the past year. No one from the Sosnoff organization was immediately available for comment. Caesars said its financial advisor, Drexel Burnham Lambert Inc, had determined that Sosnoff's offer was financially inadequate for shareholders other than Sosnoff. The company said other factors it considered in rejecting the offer were its financial condition, future prospects, current market conditions and the numerous conditions on which Sosnoff's bid was conditioned. Caesars' stock opened up 1/8 point at 28-1/8. That is 1/8 point above Sosnoff's offer price.  
CONSECO <CNC> TO BUY BENEFICIAL <BNL> UNIT. Conseco Inc said it has signed a definitive agreement to acquire Western National Life Insurance Co from Beneficial Corp for 275 mln dlrs in cash. Western National had assets of 1.9 billion dlrs at the end of 1986 and 1986 premium and investment revenues.  Western issues structured settlement annuities for the settlement of personal injury and damage claims and sells tax-sheltered annuities. The acquisition is subject to regulatory approval. Conseco said the acquisition would raise its assets to 2.7 billion dlrs and annual revenues to about 800 mln dlrs. Beneficial had previously announced plans to leave the insurance business.  On March Three, it said it agreed in principle to sell its American Centennial Insurance Co, Beneficial International Insurance Co, Consolidated MArine and General Insurance Co Ltd, Consolidated Life Assurance Co Ltd, Wesco Insurance Co and Service General Insurance Co subsidiaries to a management-led group for 98 mln dlrs in notes mostly contingent on performance of the units and 10 mln dlrs in cash. Conseco had 1986 operating earnings of 4,968,000 dlrs on revenues of 84.9 mln dlrs.  
ELDER-BEERMAN <ELDR> GETS OFFER OF 30 DLRS/SHARE. Elder-Beerman Stores Corp said owners of about 70 pct of its stock have offered to take the company private by offerring 30 dlrs per share for the remaining 30 pct of its stock. The company said the proposal will be considered at a regularly scheduled board meeting on March 17. It said the offer was made by members of the Beerman family holding about 70 pct of the company's stock, Chairman Max Gutmann, and certain members of the board.  
COMPUTER MEMORIES <CMIN> SETS FILM FIRM MERGER. Computer Memories Inc, which ended its disk drive operations in June 1986, agreed to acquire <Hemdale Film Corp> in a transaction which will give Hemdale's owner control of the resulting company. Computer Memories' principal asset is about 29.4 mln dlrs in cash and cash equivalents. It has agreed to exchange newly issued shares equaling 80 pct of the aggregate issued to acquire Hemdale. That company's owner, John Daly, would then become chief executive officer of the combined company which would be renamed Hemdale Film Corp. Computer Memories said the proposed transaction is subject to the results of certain corporate reviews and approval of its shareholders, who will hold a special meeting as soon as practicable. The company said it has 11,109,190 shares outstanding, of which about 1,734,000 are held by Intel Corp <INTC>. It is anticipated the FIntel shares will be purchased for 2.75 dlrs a share in connection with the merger with Hemdale, Computer Memories said.  
KLM SEEKS STAKE IN BRITISH COURIER SERVICE. KLM Royal Dutch Airlines <KLM.AS> said it is negotiating for a minority stake in a British and Commonwealth Shipping Plc <BCOM.L> courier service in a transaction which might include a convertible loan issue. KLM, already active in the fast growing door-to-door delivery market through a 50-pct stake in a Dutch courier service, is seeking to buy one-third of <IML Air Services Group Ltd> from British and Commonwealth. The two companies agreed earlier this month for KLM to take a 15-pct stake in British and Commonwealth commuter airline Air U.K. Ltd in a deal worth around two mln stg.  
PACKAGING SYSTEMS <PAKS> TO BUY LABEL FIRM. Packaging Systems Corp said it agreed to acquire <Walter-Richter Labels Inc>, a privately held maker of woven labels based in Paterson, N.J. Terms of the acquisition, which is expected to be completed within 60 days, were not disclosed.  
HOLIDAY CORP <HIA>, COMSAT <CQ> CLOSE SALE. Holiday Corp and Communications Satellite Corp said they closed the previously announced sale to Comsat of Holiday's 50 pct interest in Hi-Net Communications, their joint venture that provides in-room video entertainment to hotels by satellite. Under terms of the deal, Comsat paid Holiday 25 mln dlrs in cash and assumed half of the venture's 50 mln dlrs of outstanding debt, the company's said. Hi-Net, they added, will continue to provide programming to Holiday's hotels.  
NATIONAL PIZZA CO <PIZA> TO ACQUIRE RESTAURANTS. National Pizza Co said it reached an agreement in principle to buy seven Straw Hat pizza restaurants and certain related real estate for approximately three mln dlrs in cash. The acquisitions will be converted to Pizza Hut restaurants, said National Pizza, and are expected to generate annual sales of approximately eight mln dlrs. When the sale is complete, it will bring to 24 the number of restaurants operated by National Pizza, the company said.  
CHRYSLER <C> UNIT BUYS BENEFICIAL <BNL> UNIT. Chrysler Corp said its Chrysler First Inc acquired a major portion of the commercial lending portfolio of Beneficial Business Credit Corp, a subsidiary of Beneficial Corp. It said the acquisition involves about 84 mln dlrs of net receivables. Chrysler First, a subsidiary of Chrysler Financial Corp, had receivables of 4.3 billion dlrs at the end of 1986.  
PAINT COMPANY HAS METEX<MTX> STAKE, MAY BUY MORE. Metropolitan Consolidated Industries Inc, a New York paint company, said it has acquired 278,709 shares of Metex Corp, or 21.2 pct of the total, and left open the possibility that it might acquire more through a merger. In a filing with the Securities and Exchange Commission, Metropolitan said it bought the Metex stock as an investment. It also said it may buy additional shares, or sell some or all of its current stake. If it buys more shares, Metropolitan said it would consider doing so in the open market, in private deals, or through an exchange offer, tender offer or merger. Metropolitan said it may acquire an option on or may buy some or all of the Metex shares owned by William Hack, a Metex director, who, together with this wife, holds 149,750 of the company's common shares, or 11.4 pct of the total. Metropolitan said it already has an option to buy another 42,750 Metex common shares at 11.25 dlrs each. The option is not exercisable until April 12, 1988, it said. If Metropolitan were to exercise the option and acquire all of Hack's stake, it would have 471,208 Metex common shares, or 35.9 pct of the total. Metropolitan's SEC filing was made as a shareholder group with Hack. Metropolitan, which said it spent 3.1 mln dlrs to acquire its Metex stake, listed its recent stock purchases as 54,993 common shares on March 67 at 10 dlrs each and 83,916 shares on March 11 at 11.25 dlrs.  
BPI SYSTEMS <BPII> IN TALKS TO SELL COMPANY. BPI Systems Inc said it is holding discussions that could lead to the sale of all its outstanding shares for about 12 mln dlrs. BPI president and chief executive officer David R. Fernald declined to identify the other party involved in the talks. For the nine months ended December 31, BPI lost 1,286,000 dlrs on sales of 6,452,000 dlrs.  
BALLY MANUFACTURING SAID IT IS CONSIDERING SALE OF SIX FLAGS THEME PARKS.  BALLY MANUFACTURING SAID IT IS CONSIDERING SALE OF SIX FLAGS THEME PARKS  
TELEMEDIA TO BUY HARROWSMITH, EQUINOX MAGAZINES. (Telemedia Inc) said its (Telemedia Publishing Inc) subsidiary agreed to buy privately-owned Harrowsmith and Equinox magazines for an undisclosed amount of cash. Telemedia said the acquisition is expected to have a small positive impact on short-term earnings. Harrowsmith, an alternative life-style magazine, is Canada's seventh-largest paid circulation English-language magazine while Equinox is the country's eighth largest. Each has a circulation of about 160,000 copies. The magazine group had revenues of eight mln dlrs last year and employs 50 people, Telemedia said. Telemedia said it will also acquire a 10 pct interest in the company which recently launched the U.S. edition of Harrowsmith. The magazine's U.S. editiion, begun last year, now has a paid circulation of 180,000, the company said. It said a final deal is expected in mid-April. Telemedia said the magazines' founder has agreed to continue to provide editorial and publishing direction for the magazines.  
BALLY <BLY> CONSIDERING SALE OF SIX FLAGS. Bally Manufacturing Corp said it is considering the sale of its Six Flag theme amusement park unit and would use the proceeds to pay off debt. In addition to the possible sale of the amusement parks, Bally plans to sell a minority stake in its health club chain to the public. The company will register a proposed offering with the Securities and Exchange Commission for 20 to 30 pct of the health clubs soon, spokesman William Peltier told Reuters. "Selling Six Flags is definitely under consideration," Peltier said in response to an inquiry. He said the company would use much of the income from the amusement park chain, were it to be sold, to repay debt. Six Flags might sell for as much as 300 mln dlrs, analysts said. The health club chain, the nation's largest, is valued at 350 to 375 mln dlrs, they said. Bally reportedly already has been approached about Six Flags by several prospective buyers. The company needs the cash to begin paying back a 1.6 mln dlrs mountain of debt. Bally recently completed a 439 mln dlrs acquisition of the Golden Nugget casino hotel in Atlantic City from Golden Nugget Inc <GNG.N>. The purchase pushed its long-term debt to 1.6 billion dlrs, or almost 2.7 times its equity of 600 mln dlrs. Bally's 325-unit health and tennis clubs had revenues in 1986 of more than 450 mln dlrs, or about 28 pct of Bally's total revenues of 1.64 billion dlrs. Bally acquired Six Flags for 147.4 mln dlrs in January 1982 from Penn Central Corp. Bally bought the Great America theme park in Gurnee, Ill., in May 1984 for 113.2 mln dlrs from Marriott Corp <mhs>. In 1986 the parks had pretax operating profit of 48.6 mln dlrs on revenues of 369.4 mln dlrs. The clubs and equipment unit combined to post operating profit of 60.4 mln dlrs on revenues of 475.6 mln dlrs in 1986, of which 456.2 mln came from the clubs. The company earlier this month said it will take a charge to earnings in the first quarter of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of its common shares from real estate developer Donald Trump. Under a February 21 deal, Bally agreed to buy the 2.6 mln of the 3.06 mln shares held by Trump at 24 dlrs a share, or 62.4 mln dlrs, plus 6.2 mln dlrs related expenses in exchange for Trump not seeking control of the company for 10 years. The deal also requires Bally to buy Trump's remaining shares for 33 dlrs a share if the stock price does not reach that level by February 21, 1988.  
FRANKLIN RESOURCES <BEN> SAYS NET MAY DOUBLE. Franklin Resources Inc said it believes earnings could double this year as compared to a year ago when the company reported income of 32 mln dlrs on 143 mln dlrs in revenues. Franklin Resources is a financial services company. Its fiscal year ends September 30.  
SUNTER ACQUISITION BEGINS TENDER FOR ALLEGHENY INTERNATIONAL INC.  SUNTER ACQUISITION BEGINS TENDER FOR ALLEGHENY INTERNATIONAL INC  
IRISH OIL CONCERN BOOSTS CENERGY <CRG> STAKE. Bryson Oil and Gas plc, a Belfast, Northern Ireland, oil company which has said it is considering seeking control of Cenergy Corp, said it raised its stake in the company to 1,281,887 shares, or 13.2 pct of the total. In a filing with the Securities and Exchange Commission, Bryson said it bought 440,000 Cenergy common shares on March 10 at eight dlrs each. Previously it had held 841,887 shares, or 8.5 pct. Bryson has request detailed shareholder information from Cenergy in case it decided to communicate with shareholders. But it said Cenergy has made legal challenges to the request.  
SUNTER BEGINS TENDER FOR ALLEGHENY <AG>. Allegheny International Inc said Sunter Acquisititon Corp, formed by First Boston Inc, began a cash tender offer in accordance with their previously announced merger agreement for all the outsanding shares of Allegheny's common stock, 2.19 dlr cumulative preference stock and 11.25 dlrs convertible preferred stock. The offer expires April 9, unless extended. Under terms of the agreement, tendering shareholders will receive 24.60 dlrs per common share, 20 dlrs per preference share and 87.50 dlrs per preferred share. Allegheny said the offer is conditioned upon the valid tender of stock representing a majority of the voting power and at least two-thirds of outstanding shares of preference stock and preferred stock. The merger agreement was announced earlier this week.  
INVESTMENT FIRMS CUT CYCLOPS <CYL> STAKE. A group of affiliated New York investment firms said they lowered their stake in Cyclops Corp to 200,500 shares, or 5.0 pct of the total outstanding, from 260,500 shares, or 6.4 pct. In a filing with the Securities and Exchange Commission, the group, led by Mutual Shares Corp, said it sold 60,000 Cyclops common shares since February 26.  
CYCLOPS <CYL> WILL NOT GIVE DATA TO GROUP. Cyclops Corp said its board rejected a request by Cyacq Corp, an investor group, for more non-public information about Cyclops, a maker of specialty steels and an electronics retailer. Cyclops cited its agreement to be acquired by Britain's Dixons Group PLC for 90.25 dlrs a share under a tender offer that expires midnight March 17. Cyacq, comprising Audio/Video Affiliates Inc, Citicorp Capital Investors Ltd and other investors, yesterday said it would increase its tender offer for Cyclops to 92.50 dlrs a share from 80 dlrs, subject to certain conditions. The conditions were that Cyclops provide Cyacq with non-public data given to Dixons and that Cyacq be satisfied with financial projections made by Dixons in its offer. Cyclops also said its board determined that Cyacq's announcement was not an offer. "Cyacq's press release does not amend Cyacq's outstanding tender offer which remains at 80 dlrs per share and it does not state that Cyacq has financing commitments necessary to carry out its original offer or any increased offer that it may make," Cyclops said in a statement. Its agreements with Dixons are binding and Dixons indicated it will not rescind or waive any provisions of the pacts, Cyclops said. The company also said it was advised that Dixons' shareholders approved the merger, satisfying that condition of the agreement.  
EDELMAN CUTS LUCKY STORES <LKS> STAKE TO 4.8 PCT. A group led by New York investor Asher Edelman said he lowered its stake in Lucky Stores Inc <LKS> to 1,827,734 shares, or 4.8 pct of the total outstanding common stock, from 1,930,734 shares, or 5.1 pct. In a filing with the Securities and Exchange Commission, the Edelman group said it sold 103,000 Lucky Stores common shares on March 9 and 10 at prices ranging from 28.625 to 30.375 dlrs a share. So long as Edelman's stake is below five pct he is not required to report his dealings in Lucky Stores stock.  
INTERCONNECT PREFERS FRIENDLY GATES <GLJ> OFFER. <Interconnect Capital> said it seeks to acquire Gates Learjet Corp on friendly terms. Late yesterday the company said it has offered 7.07 dlrs per share for all Gates Learjet shares. Interconnect Capital said it intends to purchase the <Gates Corp> loan to Gates Learjet for 13 mln dlrs should its bid be successful. Interconnect Capital is controlled by <Interconnect Inc>. Gates Corp owns 64.8 pct of Gates Learjet.  
MINDSCAPE BUYS HARCOURT BRACE <HBJ> UNIT. (Mindscsape Inc) said it agreed to buy the educational software unit of Holt, Rinehart and Winston Inc, a subsidiary of Harcourt Brace Jovanovich Inc, for undisclosed terms. Sales of the division, which had been purchased by Holt, Rinehart from CBS, peaked at about 10 mln dlrs in 1985, Mindscape said.  
CAESARS WORLD SAYS IT CONSIDERS RESTRUCTURING AND SALE TO OTHER COMPANY.  CAESARS WORLD SAYS IT CONSIDERS RESTRUCTURING AND SALE TO OTHER COMPANY  
ARCO SELLS TWO AGRICULTURAL RESEARCH OPERATIONS. Atlantic Richfield Co said it sold its Plan Cell Research Institute unit and its Arco Seed Co operations in two transactions for undisclosed prices. The company said it sold Dublin, Calif.-based Plant Cell Research to Montedision SpA of Milan, Italy, and ARCO Seed Co to U.F. Genetics of Hollister, Calif. Atlantic Richfield said the divestitures are in line with its policy of focusing resources on oil, gas, chemical and coal operations.  
CAESARS WORLD <CAW> SAYS IT MULLS RESTRUCTURING. Caesars World Inc, in rejecting a 28 dlr a share takeover bid by New York investor Martin Sosnoff, said it is considering alternatives that include a restructuring of the company and the sale to someone else. In a filing with the Securities and Exchange Commission, Caesars World said its board decided at a special meeting yesterday to "explore and investigate" several alternatives in an effort to thwart Sosnoff's takeover attempt. More  
CHEMLAWN <CHEM> SEEKS BIDS BY MARCH 18. ChemLawn corp said it has asked potential purchasers of the company to submit their proposals by 1700 EST on March 18. ChemLawn said if Waste Management Inc <WMX> intends to participate in the bidding process, it will have to submit a confidentiality agreement to Chemlawn financial advisor Smith Barney, Harris Upham and Co Inc. Waste Management has a 27 dlr per share tender offer for Chemlawn underway that Chemlawn has already rejected as inadequate. Chemlawn has already said it is holding talks with various parties on the sale of the company and said it has informed all potential purchasers that they mnust sign confidentiality agreemnents to receive confidential information on Chemlawn. ChemLawn said if Waste Management were to sign such an agreement, ChemLawn would supply it with the same information being supplied to other potential purchasers. But it said it will not make an exception for Waste Management which would give that company an advantage in the bidding process.  
SMARTNAMES TO BUY AMERICAN INFORMATION NETWORK. SmartNames Inc said it reached an agreement in principle to buy American Information Network. Terms of the agreement were not disclosed. The company said the purchase of American will allow it to meet the needs of a broader range of direct mail industry customers.  
ARCO <ACR> SELLS TWO OPERATIONS. Atlantic Richfield Co said it sold its Plan Cell Research Institute unit and its Arco Seed Co operations in two transactions for undisclosed prices. The company said it sold Dublin, Calif.-based Plant Cell Research to <Montedision SpA> of Milan, Italy and ARCO Seed Co to U.F. Genetics of Hollister, Calif. Atlantic Richfield said the divestitures are in line with its policy of focusing resources on oil, gas, chemical and coal operations.  
PLM <PLMA> UNIT ENDS MERGER TALKS. PLM Cos Inc said its PLM Power Co unit broke off merger discussions with Sunlaw Energy Corp of Beverly Hills, Calif. In January PLM Power entered into a letter of intent to negotiate a potential acquisition of Sunlaw, subject to substantial due diligence, the company said. But it also said the two companies were not able to agree on mutually satisfactory final terms and conditions.  
MAXTOR <MXTR> AGREES TO ACQUIRE U.S. DESIGN. Maxtor Corp and U.S. Design Corp <USDC>, said they reached definitive agreement covering the acquisition of U.S. Design by Maxtor. They said the arrangement, which is subject to a number of conditions including U.S. Design shareholder approval, calls for Maxtor to issue 12 mln dlrs worth of its own common stock in exchange for all of U.S. Design. The number of Maxtor shares to be issued will be determined by the average closing price of Maxtor stock over the 10 trading day period prior to the day the acquisition becomes effective, the companies also said.  
OILMAN HAS 8.7 PCT OF QED EXPLORATION <QEDX>. Kansas oilman Nicholas Powell told the Securities and Exchange Commission he has acquired 195,000 shares of QED Exploration Inc, or 8.7 pct of the total outstanding common stock. Powell, who heads Prairie Resources Corp and Mack C. Colt Inc, both Kansas oil and gas exploration companies, said he bought the stock for investment purposes. Powell, who said he has already spent 609,831 dlrs on his QED stock, said he plans to buy more shares as long as he considers them to be undervalued.  
TONY LAMA <TLAM> TO BUY <COULSON OF TEXAS INC>. Tony Lama Co Inc said it signed a letter of intent to buy Coulson of Texas Inc, a maker of heels and leather components. The company said exact terms of the deal have not been determined but that it does not expect the acquisition to have a material effect on its financial position. In addition to buying substantially of all Coulson's assets, Tony Lama said it would assume certain of the company's liabilities.  
TRIBUNE <TRB> COMPLETES CABLE SYSTEM SALE. Tribune Co said it completed the sale of the Danville, Va., cable television system to Cablevision Industries Ltd Partnership, affiliated with Cablevision Industries Inc of Liberty, N.Y. It said the Danville system was one of two systems acquired by Tribune on September 30, 1986 as part of its purchase of The Daily Press Inc, publisher of the Newport News Daily Press and The Times-Herald. Agreements to sell both systems for a total of 100 mln dlrs were reached in October. Sale of the Newport News system was completed in December.  
GTE <GTE> UNIT TO SELL INFORTEXT PRODUCTS. Infortext Systems Inc said it finalized a two-year agreement under which GTE Services Corp and eight affiliates will sell Infortext's line of personal computer-based telephone call accounting systems. GTE Services, a unit of GTE Corp, evaluated 23 competitive call accounting systems, the company said.  
SHEPPARD RESOURCES TO MERGE WITH CANCER CLINIC. Sheppard Resources Inc said it signed a letter of intent to merge with Breast Centers Inc, an owner, operator and franchiser of clinics that provide services for the early detection of breast cancer. Terms were not disclosed. After the merger, Breast Centers shareholders would become the majority shareholders of the combined company. Also, if approved, Sheppard will change its name to Breast Centers.  
TENDER FOR ALLEGHENY INT'L <AG> UNDERWAY. First Boston Inc's <FBC> Sunter Acquisition Corp said it began its previously announced 24.60 dlr per share tender offer for Allegheny International Inc's common stock. The company is also offering 20 dlrs for each 2.19 dlr cumulative preferred share, and 87.50 dlrs for each share of 11.25 dlr convertible preferred stock. The company said the offer and withdrawal rights will expire at midnight April nine unless extended.  
CABLEVISION TO BUY VALLEY CABLE FOR 100 MLN DLR. <Cablevision Industries Corp> said its Cablevision Industries of California Inc subsidiary has entered into an agreement to buy substantially all of the assets of Valley Cable TV for about 100 mln dlrs. The company said it will buy the system from a California limited partnership, which is wholly-owned by Toronto-based <Hollinger Inc>. It said Valley Cable operates a 60,000 subscriber cable television systems passing about 180,000 homes in the west San Fernando Valley area of Los Angeles. Cablevision said it is the nation's 21st largest cable company and is ownnd by Alan Gerry, its chairman, president and chief executive officer. The company said the agreement is subject to regulatory approval.  
BORG-WARNER <BOR> BOARD OKS SALE OF UNIT. Borg-Warner Corp said its directors approved the sale, for about 240 mln dlrs, of its industrial products division to a New York-based private investment firm, Clayton and Dubilier Inc, and senior management of the group. Yesterday, the company said it agreed to sell the division, which has annual sales of about 300 mln dlrs and is based in Long Beach, California.  
SOUTHAM UNIT ACQUIRES WINNIPEG COMMUNITY PAPERS. <Southam Inc> said its Flyer Force unit acquired three community newspapers in Winnipeg with a combined circulation of 65,000 for undisclosed terms. Southam said the newspapers, The Herald, The Lance and Metro One, will be printed at its Canadian Publishers division in Winnipeg. Flyer Force intends to expand distribution of the newspapers to begin improved service to the Winnipeg market, Southam said.  
FOREST CITY <FECA> COMPLETES SALE. Forest City Enterprises Inc said it completed the previously announced sale of assets of its retail store division, excluding real estate, to Handy Andy Home Improvement Centers Inc, a private Gurnee, Ill., firm. The sale is for cash and notes but exact terms were not disclosed.  
MINN. BANK, OKLA. THRIFT ACTIONS TAKEN. Beaver Creek State Bank in Beaver Creek, Minn., failed and the bank's insured assets were transferred to Citizens State Bank of Silver Lake, Minn., the Federal Deposit Insurance Corp. said. Separately, the Federal Home Loan Bank Board said Victor Federal Savings and Loan Association of Muskogee, Okla., was placed into receivership. Beaver Creek's two offices will re-open as branches of Citizens on Monday. The transfer was arranged because there were no bids to buy Beaver Creek, the FDIC said. Citizens will pay a premium of 30,000 dlrs  to the FDIC and purchase Beaver Creek's assets for 5.3 mln dlrs. It was the 43rd bank failure in the nation this year. The FHLBB said Victor Federal Savings was insolvent and its assets were transferred to a newly chartered federal mutual association with directors named by the FHLBB. Victor was a stock association with 564 mln dlrs in assets. The new association is to be known as Victor Savings and Loan Association and its assets continue to be insured by the Federal Savings and Loan Insurance Corp, the FHLBB said.  
INVESTOR DISAPPOINTED AT CAESARS <CAW> RESPONSE. Investor Martin Sosnoff said in a statement that he was disappointed in Caesars World Inc's response to his 28 dlrs a share offer to buy the company. The company had said the offer was inadequate and that it was exploring restructuring or sale of the company to another party. Sosnoff said he believes the offer is fair to all shareholders. "My primary desire is still to sit down with management to negotiate a friendly acquisition," he said.  
PRATT <PRAT> OFFER FOR RESORTS <RT> EXPIRES. PH Acquisition Co, a unit of Pratt Hotel Corp, said its 135 mln dlrs per share tender offer for all shares of Class B common stock of Resorts INternational Inc expired. As of today, about 45,690 shares were tendered, an insufficient number of shares to satisfy the condition that 51 pct of the voting power be tendered. Earlier this week, New yOrk developer Donald Trump made a competing bid for the class B shares.  
S&L ACQUISITION RAISES U.S. 1987 TOLL TO 12. The Federal Home Loan Bank Board (FHLBB) announced the acquisition of Home Savings and Loan Association in Seattle, Washington, by InterWest Savings Bank of Oak Harbour, Washington. The FHLBB said Home Savings was the 12th troubled savings institution requiring federal action this year. It said Home Savings had assets of 150.6 mln dlrs in assets and InterWest had assets of 342.9 mln dlrs.  
DELORS QUOTED FAVOURING FRANCO-GERMAN BID FOR CGCT. European Commission President Jacques Delors, quoted by Le Monde newspaper, said he favoured a Franco-German candidate to take over <Cie Generale de Constructions Telephoniques>, which has a 16 pct stake in the French public telephone switching market. "I wish for a European solution ... That will enable Germany and France to move closer together, which is currently necessary," he was quoted as saying. "Given the situtation of the EC (European Community) and of the importance for our future connunications audiences and of cooperation already undertaken on the Community level, that seems the best choice," Delors added. Five groups, including an alliance between West Germany's Siemens AG <SIEG.F> and France's Schneider S.A. <SCHN.PA> subsidiary Jeumont-Schneider, have applied to buy what is France's second largest telephone switching firm. Under French privatisation law, foreign companies are restricted to a 20 pct stake in privatised companies.  
HARPER AND ROW <HPR> TO MULL OPTIONS AFTER BIDS. Harper and Row Publishers Inc said its board of directors decided to take no action on two takeover bids that the company has received. Instead, it appointed a committee of independent directors to study strategic alternatives for the 170-year-old firm. The alternatives include continuation of the company's existing business plans, possible business combinations, sales of stock, restructuring and the sale of all or part of the company. Kidder Peabody and Co Inc has been retained to advise on the alternatives, Harper and Row added. Private investor Theodore Cross last week offered 34 dlrs a share for Harper and Row, prompting a rival bid of 50 dlrs a share from another publishing firm, Harcourt Brace Jovanovich Inc <HBJ>. After considering the two offers at a meeting on Friday, the Harper and Row board decided not to act on them. The directors unanimously expressed their strong desire to preserve the company's independence and take advantage of its "considerable future prospects," according to director Winthrop Knowlton, former chief executive and now chairman of the newly established independent committee. "However, given the significant current interest in the company, we also feel that we should carefully review all the options available. The committee will consider all the pertinent facts and alternatives.... We intend to make a careful and informed decision but will proceed expeditiously to a conclusion," Knowlton said. Pending its deliberations, Harper and Row's board has postponed indefinitely a special meeting of stockholders that had been scheduled for April 2 to discuss a proposal to recapitalize the company's stock to create two classes of shares with different voting rights.  
BHP TO MERGE BHP MINERALS AND UTAH INTERNATIONAL. The Broken Hill Pty Co Ltd <BRKN.S> said it will merge its BHP Minerals division and <Utah International Inc> into a single business unit under a common management structure. The merger will be effective June 1, coinciding with the retirement of Utah International chairman and chief executive Bud Wilson, BHP said in a statement. The new BHP-Utah Minerals International Group will be headed by Jim Curry as executive general manager and chief executive officer. Curry is currently executive vice-president of Utah International, BHP said. <BHP Petroleum (Americas) Inc>, formerly part of Utah International, will become a subsidiary of BHP's renamed <BHP Petroleum International>, now <BHP Petroleum Pty Ltd>, the company said. BHP will also bring its Queensland coal operations under one management structure and consolidate minerals marketing and sales offices in various markets throughout the world. BHP acquired Utah from General Electric Co <GE> in 1984. Utah's assets include stakes of 40.25 to 52.25 pct in seven large Central Queensland coking mines, 49 pct of the Samarco iron ore operation in Brazil, 60 pct of La Escondida copper deposit in Chile, the Island Copper mine at Port Hardy in Canada, 70 pct of a coal mine and 30 pct of a gold mine in South Africa and coal and other mines in the U.S. BHP Minerals' assets include wholly and partly-owned iron ore mines, coal mines, manganese and base-metal operations or prospects and 30 pct of the Ok Tedi gold-copper project in Papua New Guinea.  
CARLTON BUYS STAKE IN CENTRAL INDEPENDENT TV. Carlton Communications Plc <CCML.L> said in a statement it had purchased a 20 pct stake or some 5.1 mln shares in Central Independent Television from Ladbroke Group Plc <LADB.L> at 578p per share. The consideration of 29.5 mln stg will be met with 18.2 mln stg in cash and the issue of one million ordinary Carlton shares, it said. Central showed pretax profits up by 57 pct to 18.8 mln stg for the year ended 30 September 1986.  
MANILA GOVERNMENT TO TAKE OVER SAN MIGUEL BOARD. A government commission that controls 51 pct of <San Miguel Corp> (SMC) stock will increase its nominees on the firm's 15-member board to nine from six. "We want to correct business practices," Ramon Diaz, chairman of the Presidential Commission on Good Government (PCGG), told Reuters. "Right now there are a lot of companies that keep so many things from their shareholders and one of them is San Miguel," he said. A San Miguel spokesman declined comment. Diaz said New York investment bank Allen and Co Inc told the PCGG it was interested in tendering for all outstanding SMC stock, with the subsequent dispersal of 60 pct of the stock to Filipino investors to comply with investment laws. He said Australian businessman and brewer Alan Bond and the brewing company Elders IXL Ltd <ELXA.S> were interested in buying 40 pct each of SMC stock. He added that the PCGG wanted some foreign input but would not allow foreign control of the brewing and food conglomerate, the Philippines' biggest manufacturing concern. Diaz said the PCGG did not plan to remove SMC president Andres Soriano from his family company. "He has tremendous prestige to run the company," Diaz said. "We appreciate his management, but certainly some practices have to be corrected."  
BOND DEFERS RIGHTS ISSUE, MULLS PROJECT PARTNERS. <Bond Corp International Ltd>, a subsidiary of the Australian-based Bond Corp Holdings Ltd <BONA.S>, said it would defer its planned rights issue but still wants the issue to be made before July 31. No date has been set for the issue, announced in January. In a document to shareholders, Bond Corp said the delay follows its receipt of a 240 mln H.K. Dlr loan from its parent company to meet the first payment on the newly acquired Bond Centre commercial complex in central Hong Kong. It also wants outside partners to take up to 50 pct in the project, the company said. The January announcement said the rights issue would finance Bond Corp's 1.4 billion dlr acquisition of a 23.77 pct stake in HK-TVB Ltd <TVBH.HK> from film magnate Run Run Shaw. The company then reached an agreement with a consortium led by Sino Land Co Ltd <SINO.HK> to buy a commercial complex that is still under construction for 1.9 billion dlrs. Bond International said in the document that except for the 240 mln dlr loan, the deal would be financed from internal resources and by selling an interest in the building. The payments must be completed by the end of 1987. Bond International has also sold several residential buildings in Hong Kong's mid-levels district for a total of 68.35 mln dlrs, the statement said. The flats were among the properties it bought last year from Hongkong Land Co Ltd <HKLD.HK> for 1.4 billion dlrs. Analysts said Bond International is heavily geared as it has relied on bank borrowings to purchase both the Hongkong Land properties and the HK-TVB shares. Bond International also said in the document that while it plans to sell an interest in the complex it will hold the HK-TVB shares as a long-term investment.  
BANK OF CHINA TAKES STAKE IN BAII HOLDINGS. Bank of China has taken a stake in Luxembourg-based finance company BAII Holdings SA, a spokesman for BAII said. The stake was between three and five pct but no further details of the deal, which was announced simultaneously in Paris, London and Hong Kong, were immediately available. BAII, which is 50 pct Arab owned, is looking to expand its activities in the Far East and recently established a wholly-owned merchant banking subsidiary in Hong Kong, the spokesman said. The group had earnings of 15.4 mln dlrs in 1985.  
PEPSICO OFFERS TO ACQUIRE CALNY INC FOR 11.50 DLRS A SHARE.  PEPSICO OFFERS TO ACQUIRE CALNY INC FOR 11.50 DLRS A SHARE  
HARPER AND ROW <HPR> TO MULL OPTIONS AFTER BIDS. Harper and Row Publishers Inc said its board of directors decided to take no action on two takeover bids that the company has received. Instead, it appointed a committee of independent directors to study strategic alternatives for the 170-year-old firm. The alternatives include continuation of the company's existing business plans, possible business combinations, sales of stock, restructuring and the sale of all or part of the company. Kidder Peabody and Co Inc has been retained to advise on the alternatives, Harper and Row added. Private investor Theodore Cross last week offered 34 dlrs a share for Harper and Row, prompting a rival bid of 50 dlrs a share from another publishing firm, Harcourt Brace Jovanovich Inc <HBJ>. After carefully considering the two offers at a meeting on Friday, the Harpers and Row board decided not to act on them. The directors unanimously expressed their strong desire to preserve the company's independence and take advantage of its "considerable future prospects," according to director Winthrop Knowlton, former chief executive and now chairman of the newly established independent committee. "However, given the significant current interest in the company, we also feel that we should carefully review all the options available. The committee will consider all the pertinent facts and alternatives... We intend to make a careful and informed decision but will proceed expeditiously to a conclusion," Knowlton said. Pending its deliberations, Harper and Row's board has postponed indefinitely a special meeting of stockholders that had been scheduled for April 2 to discuss a proposal to recapitalize the company's stock in order to create two classes of shares with different votinmg rights.  
FAILING WASHINGTON STATE S/L IS ACQUIRED. The Federal Home Loan Bank Board (FHLBB) announced the acquisition of Home Savings and Loan Association in Seattle, Washington, by InterWest Savings Bank of Oak Harbour, Washington. The FHLBB said Home Savings was the 12th troubled savings institution requiring federal action this year. It said Home Savings had assets of 150.6 mln dlrs in assets and InterWest had assets of 342.9 mln dlrs.  
CALNY <CLNY> GETS BID FROM PEPSICO <PEP>. Calny Inc said it has received an offer to be acquired by PepsiCo Inc, which already owns 9.9 pct of Calny stock, for 11.50 dlrs per share, subject to approval by PepsiCo and Calny boards and Calny shareholders. The company said its board intendsd to schedule a meeting in the near future to review the proposal and it has asked <Oppenheimer and Co Inc> to assist it in evaluating the offer and advise Calny on its alternatives. Calny is the largest franchisee of PepsiCo's Taco Bell restaurants, operating 143 in California, Oregon, Texas and Washington as well as 15 La Petite Boulangerie bakeries in Seattle. Calny earned 1,192,000 dlrs on sales of 56.2 mln dlrs for the nine months ended November Four. On December Four, Calny rejected as inadequate an investor group led by former president and chairman Robert A. Larive's second offer to acquire it because the bid was inadeuqate and subject to too many contingencies.  The group offered 11.50 dlrs and one dlr of 10 pct preferred stock per Calny share.  
WARBURG PINCUS STARTS SYMBION <SYMB> BID. <Warburg, Pincus Capital Corp> said it has started a tender offer for up to 2,500,000 common shares of Symbion Inc at 3.50 dlrs each. In a newspaper advertisement, The firm said the opffer is not conditioned on receipt of any minimum number of shares but is conditioned on holders of nor more than 400,000 Symbion sharesseeking to receive the fair value of their shares under provisions of the Utah Business Corporation Act.  Warburg said receipt of 2,500,000 shares would raise its interest in Symbion to about 59.3 pct from 25.8 pct currently and give it control. Warburg said it reserves the right to buy more than 2,500,000 shares if the offer is oversubscribed but has no present intention of doing so.  It said it has asked Symbion to provide its shareholder list to help in disseminating the offer. The firm said the offer, proration period and withdrawal rights expire April 22 unless extended.  
DIXONS SELLS 8.3 MLN WOOLWORTH SHARES. Dixons Group Plc <DXNS.L> has sold 8.3 mln shares in Woolworth Holdings Plc <WLTH.L> through Salomon Brothers U.K. Equity Ltd, a statement from Salomon said. The shares were placed with about 45 to 50 institutions in Europe and the Far East. Dixons retains one mln Woolworth shares, a Dixons spokesman added. Industry sources said Dixons acquired the Woolworth shares in connection with its unsuccessful bid for the company last year. Dixons paid an average price of 695p per share which compares with 819p today. Woolworth closed on Froday at 833p. A Dixons spokesman said the decision to retain one mln shares reflected Woolworth's buoyant prospects.  
<WHIPPANY PAPER BOARD CO INC> MERGER APPROVED. Whippany Paper Board Co Inc said shareholders at a special meeting approved a merger into NPN Inc for 2.50 dlrs per share. NPN acquired control of Whippany in a recent tender offer.  
NORTHERN AIR FREIGHT <NAFI> GETS, REJECTS, BID. Privately-held <Pilot Air Freight> said it met with officials of Northern Air Freight Inc to try to negotiate a friendly acquisition of Northern, but Northern's management had no interest in the proposal. Northern has annual revenues of about 60 mln dlrs and is based in Seattle.  
RENOUF EXTENDS BENEQUITY HOLDINGS <BH> OFFER. Renouf Corp International said it has extended the expiration of its offer to pay 31 dlrs a unit to buy all outstanding units of Benequity Holdings a California Limited Partnership to March 24 from March 13. As of March 13, Renouf said, about 3,847,375 units had been tendered. Renouf pointed out this exceeds the minimum number sought in the offer, but its statement gave no reason for the extention. Benequity has 5.7 mln units outstanding.  
BECOR WESTERN GETS OFFER TO BE ACQUIRED BY NEW GROUP FOR 15.50 DLRS SHARE.  BECOR WESTERN GETS OFFER TO BE ACQUIRED BY NEW GROUP FOR 15.50 DLRS SHARE  
DIAMOND SHAMROCK SETS 27 PCT PRORATION FACTOR FOR TENDERED SHARES.  DIAMOND SHAMROCK SETS 27 PCT PRORATION FACTOR FOR TENDERED SHARES  
BECOR WESTERN <BCW> GETS OFFER TO BE ACQUIRED. Becor Western Inc said <Investment Limited Partnership> of Greenwich, conn., and Randolph W. Lenz are offering to acquire Becor for 15.50 dlrs per share, subject to Becor's receipt of at least 110 mln dlrs from the proposed sale of its Western Gear Corp subsidiary. Becor said it has also received expressions of interest from other parties seeking information about Becor. Becor had previously agreed to sell Western Gear for at least 110 mln dlrs and to be acquired by BCW Acquisition Inc for 10.45 dlrs in cash and four dlrs in debentures per Becor share.  BCW was formed by Becor executives and <Goldman, Sachs and Co>.  Both deals are subject to shareholder approval.  
CLARK EQUIPMENT <CKL> STAKE ACQUIRED. Clark Equipment Co said it was informed by Arthur M. Goldberg acting on behalf of a group of investors that the group had accumulated 1,262,200 shares, or about 6.7 pct of Clark's outstanding common stock. It said Goldberg recently approached Clark to repurchase the shares. However, negotiations for the block repurchase were unsuccessful and have been terminated.  
AVIA STOCKHOLDERS SEEK TO BLOCK SALE TO REEBOK. <Avia Group International Inc> stockholders filed a class a action suit in Multnomah County Circuit court seeking to halt the sale of Avia to Reebok International Ltd <RBOK>. Avia stockholders also seek to receive compensation from the defendants, who include most of Avia directors, according to court papers. The suit grew out a meeting of several dozen dissatisfied minority stockholders of Avia following the announcement of Reebok's proposed acquisition of Avia and the sudden drop in the price of Avia stock. The complaint was filed on behalf of Clem Eischen, a Portland-area resident, who owns 500 shares of Avia, and Robert Withers, also of the Portland-area, who owns 954 shares, and other individuals who held stock at the time of Reebok's announcement. A jury trial has been requested. "The actions of the small group that contral Avia have hurt the little guy," said Eischen. The stockholders, according to a statement, have organized a steering committee. The complaint reviews the price action of Avia stock from March 1986 and noted the plaintifs who purchased stock between 19 dlrs and 25 dlrs per share. The price fell from 24 dlrs to 16.50 dlrs a share following the Reebok announcement. The complaint asked the defendants be enjoined from proceeding with the Reebok acquisition of Avia. It also requests damages to be determined at the time of trial. Avia said it had not seen the court papers and said it had no comment on the suit.  
DIAMOND SHAMROCK <DIA> SETS PRORATION FACTOR. Diamond Shamrock Corp said it will accept about 27 pct of the 73,653,000 shares of its common stock tendered in response to the company's offer to pay 17 dlrs a share for 20 mln shares. The company said it expects to mail checks representing the purchase price of the 20 mln shares purchased later this week and will be returning unpurchased shares shortly thereafter.  
ALDERSHOT AGREES TO ACQUIRE INTRACOASTAL REFINING. Aldershot Resources Ltd said it signed an interim agreement to acquire 100 pct of the outstanding shares of Intracoastal Refining Inc of Conroe, Texas. Aldershot will pay a certain number of shares of common stock based on book value, and up to a maximum of one mln shares under a formula linked to the next five years' pre-tax net revenues. The transaction is subject to completion of a definitive agreement and to regulatory approval.  
DERLAN ACQUIRES 80 PCT OF AURORA INDUSTRIES. <Derlan Industries Ltd> said it acquired 80 pct of Aurora Industries Inc of Montgomery, Illinois for an undisclosed price. Closing is subject to completion of legal formalities, Derlan said.  
DART SEEKS SUPERMARKETS <SGL> NEGOTIATIONS. <Dart Group Inc> said it is preparted to negotiate all terms of its proposed acquisition of Supermarkets General Corp. Early this month, Dart made an unsolicited offer of 41.75 dlrs a share in cash for Supermarkets General's stock. Releasing a letter sent friday to Supermarkets General, Dart said "we believe that an agreement can be reached which will be in the best interests of Supermarkets General, its stockholders, management, employees and customers. "To that end, we are prepared to negotiate all terms of an acquisition agreement," Dart said. Dart said it urges a meeting with Supermarkets General officials be held promptly. The letter pointed out the company has not heard from Supermarkets General since making the offer "other than on this past Monday when we were informed that our offer would be seriously considered and that you would get back to us on a timely basis to arrange a meeting." Dart said it has "acted openly and amicably" in an effort to facilitate its proposed acquisition, adding it has not purchased additional Supermarkets General stock since prior to submission of its offer. Dart said it continues to be interested in acquiring Supermarkets General in a friendly manner, noting it has given the company "the tune that you suggested in order to allow you to evaluate the available options." Dart now owns 1.9 mln Supermarkets General shares, slightly less than five pct of those outstanding.  
THERMO ELECTRON <TMO> CONSIDERS UNIT STAKE SALE. Thermo Electron Corp said it has entered into talks with underwriters on the possible public sale of a minority interest in its packaged cogeneration systems subsidiary, Tecogen Inc. The company also said it plans to offer convertible subordinated debentures publicly. It gave no further details.  
16-MAR-1987. 16-MAR-1987 
TEXAS AIR TO GIVE FORMER CONTINENTAL AIR HOLDERS ANOTHER 3.75 DLRS A SHARE.  TEXAS AIR TO GIVE FORMER CONTINENTAL AIR HOLDERS ANOTHER 3.75 DLRS A SHARE  
CONTINENTAL AIR HOLDERS TO GET FURTHER PAYMENT. Texas Air Corp said under a settlement of class action litigation with <Mutual Shares Corp>, former minority shareholders of Continental Airlines Inc will receive an additional 3.75 dlrs per share. In February, Texas Air acquired the minority interest in Continental that it did not already own for 16.50 dlrs per share. Mutual had challenged the adequacy of the price. Texas Air said any former Continental holder who has sought appraisal rights under Delaware law may continue to seek the appraisal remedy in Delaware Chancery Court or accept the settlement and drop the appraisal process. Texas Air said the settlement has other terms relating to employee shareholdrs of Continental, who will receive options from Texas Air.  It did not give details. The company said the settlement is subject to approval by the Delaware Chancery Court, which is expected to take about 60 days.  
INTERMAGNETICS GENERAL <INMA> COMPLETES BUY. Intermagnetics General Corp said it completed the purchase of the advanced products department of Air Products and Chemicals Inc <APD>. Terms were not disclosed. The department, which makes cryogenic equipment, will continue operating at its present location in Allentown, Pa., the company said. It will market its products as APD Cryogenics Inc.  
ITALY'S FERRUZZI TAKES OVER SPANISH MILL. Italy's Ferruzzi SpA has taken a 67 pct stake in Spanish sunflower seed and cotton mill Cooperativa Agricola del Guadalete SA (GUADALCO), sources at GUADALCO said. The Italian firm's Spanish subsidiary, Ferruzzi Espana SA, took the majority equity stake, with the remaining 33 pct retained by GUADALCO. Ferruzzi plans to set up a sugar division and import some 30,000 tonnes of industrial sugar from its French factories in its first year of operation. GUADALCO has a processing capacity of 250 tonnes a day of sunflower seeds and 12,000 tonnes a day of raw cotton.  
NATIONAL PIZZA <PIZA> CORRECTS FIGURE. National Pizza Co said the seven Straw Hat Piza restaurants in Los Angeles and Bakersfield, Calif., that it announced plans to buy Friday are expected to generate annual sales of about 3,800,000 dlrs, not the eight mln dlrs the company originally announced. The company said it will convert the restaurants to Pizza Hut units.  Closing is expected around March 31.  
AVAQ INTERNATIONAL TO SEEK COMMITMENT ON DEAL. <AVAQ International Inc> said it intends to require Gates Learjet Corp <GLJ> to honor its agreement to sell its shares to the company. AVAQ said it made the statement in response to an offer by <Interconnect Capital Corp> for all of Gates Learjet shares after what it believed to be an agreement by Gates to accept its offer. AVAQ said it offered, pusuant to Gates' guidelines, six dlrs per share, plus the purchase of Gates Corp's promisary note for 23 mln dlrs. Interconnect said it offered 7.07 dlrs per share, plus the repurchase of the loan for 13 mlns, for an aggregate price in the 95 mln dlr range. Interconnect said it made the offer to the board of directors of Gates Learjet on March 9. AVAQ said Gates Corp and Gates Learjet approved its offer Feb 26.  
COMTECH <CMTL> TO SELL PREMIER MICROWAVE. Comtech Inc said it agreed in principle to sell 95 pct of its outstanding shares in Premier Microwave Corp for seven mln dlrs. It said the buyers include an investment group composed of the unit's management. The company said it expects the sale to close in the next few weeks. Proceeds will be used to reduce debt.  
INVESTMENT FIRMS HAVE 5.9 PCT OF PUROLATOR <PCC>. A group of affiliated New York-base investment firms and funds told the Securities and Exchange Commission they have acquired 453,300 shares of Purolator Courier Corp, or 5.9 pct of the total outstanding. The group, led by Mutual Shares Corp, said it bought the stock for investment purposes. It also said it is studying the 35 dlr a share leveraged buyout offer made by Purolator managers and E.F. Hutton LBO Inc but has not decided whether it will tender its stock in the offer. The group said it has held talks with the Hutton LBO group before and may do so again.  
SETON <SEL> GETS BUYOUT OFFER FROM CHAIRMAN. Seton Co said its board has received a proposal from chairman and chief executive officer Philip D. Kaltenbacher to acquire Seton for 15.75 dlrs per share in cash. Seton said the acquisition bid is subject to Kaltenbacher arranging the necessary financing.  It said he intends to ask other members of senior management to participate. The company said Kaltenbacher owns 30 pct of Seton stock and other management members another 7.5 pct. Seton said it has formed an independent board committee to consider the offer and has deferred the annual meeting it had scheduled for March 31.  
METEX <MTX> CHAIRMAN SELLS SHARES. Metex Corp said its chairman and chief executive officer Alan Cohen sold 78,375 shares of Metex common stock to Metropolitan Consolidated Industries Inc <MONY>. The company said the selling price was 11.25 dlrs per share with an option for Metropolitan Consolidated Industries to purchase up to 42,750 shares more at the same price. Metex also said Mason Carter was elected president and chief operating officer of the company. Carter joined Metex in 1982, where he was formerly its executive vice president. In addition, Attilio Petrocelli, president of Metropolitan, was named to fill a vacancy on the Metex board of directors, the company said. Metropolitan owns 21 pct of Metex common stock, the company said.  
AMERICAN SECURITY <ASEC> TO RELEASE INFORMATION. American Security Corp said a release will be forthcoming shortly regarding its pending merger with Maryland National Corp <MDNT>, approved by its stockholders October 10. American was halted on NASDAQ pending a news announcement.  
FORUM <FOUR> ENDS BEVERLY <BEV> PURCHASE DEAL. Forum Group Inc said it has terminated its agreement in principle to buy eight retirement living centers in six states from Beverly Enterprises due to a failure to reach a satisfacotry definitive agreement.  
TRIANGLE MICROWAVE <TRMW> IN TALKS ON BUYOUT. Triangle Microwave Inc said it is involved in talks on its possible purchase by a "substantial U.S. company" it did not identify. Triangle said no agreement has yet been reached and there can be no assurance that one will be reached. Any acquisitioon would be subject to approval by its shareholders and to regulatory filings, it said. Triangle Microwave makes microwave system components and had earnings for the first half ended January 31 of 1,055,000 dlrs on sales of 7,292,000 dlrs, up from earnings of 763,000 dlrs on sales of 6,034,000 dlrs a year before.  
EQUITABLE BANC <EBNC> BOSS HAS AMERITRUST STAKE. A group controlled by Equitable Bancorp Chairman Alfred Lerner said it has acquired a 9.6 pct stake in AmeriTrust Corp <AMTR> and may buy up to 24.9 pct if obtains regulatory approval. In a filing with the Securities and Exchange Commission, the group said it bought its stake of 2.0 mln Ameritrust common shares, for 81.1 mln dlrs as an investment. But the group, acting through Clevebaco L.P., a Cleveland partnership, also said it would seek regulatory approval to increase its stake. Lerner owns Clevebaco Corp, which is the general partner of Clevebaco L.P. The Lerner group said it filed with the Federal Reserve Board on March 13 notice of its intent to buy more than 10 pct of the common stock of AmeriTrust, a Cleveland bank holding company. If the Fed approves, Lerner, whose Equitable Bancorp is also in Cleveland, said he intends to buy more AmeriTrust stock, subject to market conditions and other factors. Since Lerner heads a bank holding company with assets greater than one billion dlrs, he said he is barred by law from serving as a director or officer of AmeriTrust or of having his representatives on its board. Lerner said he has no intention of influencing AmeriTrust management or its policies. The group said Clevebaco L.P. bought one mln of its shares from Bear, Stearns and Co Inc on March 9 at 41 dlrs a share. Lerner said he accumulated the other one mln shares through March 3 and sold them to Clevebaco L.P., which he controls, on March 10 for 40.10 dlrs a share.  
AMERICAN SECURITY <ASEC> BUYOUT COMPLETED. Maryland National Corp <MDNT> said it has completed the acquisition of American Security Corp in an exchange of 0.81 Maryland share for each of American's 12 mln shares outstanding. The company said the mandatory 30-day review by the U.S. Justice Department was completed today. Maryland National said American Security shareholders will be entitled to receive the 32-1/2 ct per share Maryland National regular quarterly dividend that is payable March 31 to holders of record today.  
RAINIER <RBAN> COMPLETES ACQUISITION. Rainier Bancorp said it completed the acquisition of Tacoma, Wash.-based United Bank, for 59 mln dlrs worth of Rainier stock. United, a savings bank with 607 mln dlrs in assets and 23 offices, will operate as a wholly-owned subsidiary, Rainier said. Rainier, which last month agreed to merge with Security Pacific Corp <SPC>, said the United acquisition will increase its assets to 9.8 billion dlrs from the 9.2 billion reported at the end of 1986.  
ARMTEK <ARM> COMPLETES SALE OF ASSETS. Armtek Corp, formerly Armstrong Rubber Co, completed the previously announced sale of its Natchez, Miss., tire plant and other assets to <Condere Corp>, Condere said. Condere, formed to acquire the Armstrong assets, said it named Dennis Terwillger, formerly vice president and controller of Armstrong's Tire Division, president.  
SAFETY-KLEEN <SK> TO BUY STAKE IN OIL REFINER. Safety-Kleen Corp said it has tentatively agreed to buy an 80 pct stake in Breslube Enterprises of Toronto for 14 mln dlrs in stock, cash and equipment. Price includes 14 mln dlrs of Safety-Kleen common stock, cash and a rerefining plant owned by Safety-Kleen. Closing of the deal is expected by May. Breslube is a leading rerefiner of used lubricating oils in North America, collecting used oils from auto garages, car dealers and other businesses. In 1986 it refined 20 mln gallons of used oil.  
CHEYENNE SOFTWARE <CHEY> IN ACQUISITION TALKS. Cheyenne Software Inc said it is in preliminary talks on the acquisition of compouter hardware distribution firm F.A. Components Inc and its Freeman-Owings Inc subsidiary. The company said F.A. had sales of 43.1 mln dlrs for 1986 and expects to report a loss for the year. Cheyenne said the purchase price would be paid in common stock and it would provide additional finances for the operation of F.A.  
HUDSON VALLEY PATROL AGREES TO BUY GUARD FIRM. Hudson Valley Patrol Inc said it agreed to acquire privately held Federal Protection Services Inc, a Palm Beach, Fla., security firm, for 200,000 common shares and other considerations. Hudson Valley, which provides guard and patrol services in upstate N.Y., said Federal Protection Services provides investigation, uniformed guard and armoured truck services to banks, corporations and residential communities in southern Florida. The company said it will issue 200,000 shares of its common at closing and additional shares based on Federal Protection's pretax earnings over the next three years. Closing is subject to setting a definitive agreement, it said.  
BANKING CENTER <TBCX> TO MAKE ACQUISITION. Banking Center said it has signed a letter of intent to acquire First Railroad Mortgage Co from First Union Bank of Augusta, Ga., for undisclosed terms. The company said First Railroad had loan production of over 100 mln dlrs in 1986 and was servicing over 435 mln dlrs in loans at the end of 1986.  
SAN PAOLO DI TORINO TO ACQUIRE CALIFORNIAN BANK. Italian state bank <Istituto Bancario San Paolo di Torino> said its fully-owned <San Paolo U.S. Holding Co> of Wilmington in the U.S. had signed a letter of intent to acquire <Valley National Bank> of California. San Paolo said in a statement that, subject to obtaining official authorization from the relevant bodies, it would merge Valley National Bank with its subsidiary <First Los Angeles Bank>. Value of the planned acquisition was not disclosed.  
INTERNATIONAL FINE FOODS MAKES ACQUISITION. <International Fine Foods Inc> said it has acquired 2001 Distributors Inc of West Babylon, N.Y., for 875,000 common shares, plus contingent shares based on future earnings. 2001 distributes fresh-squeezed juices and had a loss on sales of about one mln dlrs in 1986, its first year of operation.  
SCHLUMBERGER SAYS IT TERMINATES PACT TO SELL FAIRCHILD SEMICONDUCTOR BUSINESS TO FUJITSU.  SCHLUMBERGER SAYS IT TERMINATES PACT TO SELL FAIRCHILD SEMICONDUCTOR BUSINESS TO FUJITSU  
LYNCH CORP <LGL> UNIT BUYS TELEVISION STATION. Lynch Corp subisidiary Lynch Entertainment Corp said it formed a general partnership called Coronet Communications Co, which has acquired WHBF-TV station, in Rock Island, Ill. The company said the price for the station, a CBS television network affiliate, was 20 mln dlrs. The company also said the other partner is Lombardo Communications Inc, a wholly-owned corporation of Phillip Lombardo. Lynch said it will pursue further acquisitions of media and entertainment entities with emphasis on broadcasting and cable television operations.  
SCHLUMBERGER <SLB> ENDS PACT TO SELL FAIRCHILD. Schlumberger Ltd said it terminated an agreement in principle for Fujitsu Ltd to buy 80 pct of its Fairchild Semiconductor operations. The company said the rising political controversy in the U.S. concerning the venture made it unlikely that the sale of the Fairchild stake could be completed within a reasonable time. The sale has been opposed by the U.S. Commerce Department and the U.S. Defense Department, in part on national security grounds. The company said termination of the agreement opened other possibilities, including a possible leveraged buyout of the semiconductor maker by Fairchild management. In the interim, Fairchild would continue its ongoing business within Schlumberger, the oilfield services concern said. Last October, Schlumberger announced the sale of the Fairchild stake and said it would take a 200 mln dlrs charge in the fourth quarter from the sale. The company ended up recording special charges of 2.1 billion dlrs in the fourth quarter, leading to a loss of 2.02 billion dlrs for the year. Schlumberger never announced a price for the sale, but industry analysts have estimated the value of the deal at about 200 mln dlrs. The proposed sale was under antitrust review by the U.S. Justice Department. Additionally, Commerce Secretary Malcolm Baldridge and other U.S. officials have voiced reservations about the transaction since it was announced. Government officials have expressed concern that the sale could reduce the competitiveness of U.S. chip makers by putting key advanced technology into Japanese hands. New, high-technology semiconductors are used in supercomputers, which are faster and more powerful than existing computers. Schlumberger is an oilfield services company controlled by French interests and headquartered in New York. Fujitsu Ltd is a computer and telecommunications company based in Japan.  
TWA SAID IT DOES NOT INTEND TO SEEK CONTROL OF USAIR, ACQUIRE MORE STOCK AT THIS TIME.  TWA SAID IT DOES NOT INTEND TO SEEK CONTROL OF USAIR, ACQUIRE MORE STOCK AT THIS TIME  
MCGRAW HILL <MHP> BUYS HARPER/ROW <HPR> UNIT. McGraw-Hill Inc said it bought <Medecines et Sciences Internationales SA>, a French Healthcare publisher, from Harper and Row Publishers Inc. The sum of the deal was not disclosed. It said the French company publishes original titles by French authors, as well as translations of American, British and German Medical books. The company will be consolidated with McGraw-Hill France, it said.  
SUBURBAN BANCORP <SUBBA> UNIT WINS JUDGMENT. Suburban Bancorp said a Cook County Circuit Court ruled in favor of one of its companies, Suburban Bancorp of Bartlett (formerly Bartlett State Bank) on claims against six former directors. Suburban Bank of Barlett claimed that the former directors breached their fiduciary duties and were negligent in opposing Suburban Bancorp's tender offer in January 1985, costing Bartlett State Bank several hundred thousand dollars. It said a hearing to determine the amount of damages owed to the bank was set for April 21.  
TWA FILES APPLICATION SEEKING RIGHT TO RAISE USAIR STAKE TO 25 PCT.  TWA FILES APPLICATION SEEKING RIGHT TO RAISE USAIR STAKE TO 25 PCT  
COOPERVISION HAS 6.5 PCT OF COOPER LASER <ZAPS>. CooperVision Inc <EYE> told the Securities and Exchange Commission it has acquired 1,420,500 shares of Cooper LaserSonics Inc, or 6.5 pct of the total outstanding common stock. CooperVision said it bought the stake for 2.9 mln dlrs for investment purposes. It said it might buy additional Cooper LaserSonics common shares, but said it does not plan to boost its stake above 10 pct of the total outstanding.  
DNA MEDICAL <DNAM> SIGNS PACT FOR STOCK SALE. DNA Medical Inc said Walter G. Mize had bought about 9,400,000 shares, or about 33 pct of DNA's outstanding stock, for 100,000 dlrs cash. Under an agreement with Mize, DNA said he will also become chairman, and may, at his option, expand the board to provide him equal representation with the current board. DNA also said it will submit a proposal at its annual meeting for it to acquire three companies owned by Mize, <Heritage Lite Meat Corp>, <National Lean Beef Corp> and <Heritage Cattle <Corp>. DNA said the total value of the transactions is 700,000 dlrs. DNA said that when the transactions are approved by its shareholders, it will issue additional shares of its common so that Mize will own 80 pct of its issued and outstanding stock. DNA said Mize will replace its current chairman, Donald Holbrook, who will remain on the board. The company also said it will continue in the medical development business as "long as it is deemed to be advantageous."  
CITYFED <CTYF> TO SELL CONSUMER LENDING OFFICES. CityFed Financial Corp said its City Federal Savings Bank has a preliminary agreement to sell 14 consumer lending offices to <Goldome FSB> for undisclosed terms. Goldome is the largest mutual savings bank in the U.S. CityFed said it decided to sell its consumer lending offices outside its main market areas in New Jersey and Florida to concentrate its resources to these markets. The offices being sold operate under the name of City Consumer Serices Inc in Arizona, Colorado, Illinois, Maryland, New Mexico, Oregon and Virginia.  
TRANS WORLD AIRLINES <TWA> FILES ON USAIR <U>. Trans World Airlines said it told the Securities and Exchange Commission it does not intend to seek control of USAir Group or to acquire more of its stock at this time. TWA also said it is amending its application with the Department of Transportation to seek control of USAir. The amendment said TWA reserves the right to seek control of USAir in the future, that it intends to maintain its 15 pct stake, and that it also is seeking the flexibility to acquire up to 25 pct of USAir. TWA said all USAir stock owned by it would be in a voting trust and voted in the same proportion as the vote of all other USAir shareholders. TWA filed a 13-D with the Securities and Exchange Commission, reporting its holding of 4,023,200 shares of USAir. TWA has said the stake amounts to about 15 pct. TWA also said that by order of the federal court in Pittsburgh, it is temporarily barred from buying additional shares of USAir pending a hearing March 23 to reconsider USAir's application to expand the temporary restraining order to a preliminary injunction.  
FIRST BANK <FBS> AGREES TO SELL ANOTHER BANK. First Bank System Inc said it has found a potential buyer for First Bank Luverne and its office in Pipestone, Minnesota. The bank holding company said 215 Holding Co, a corporation controlled by the family of the late Robert Short, will buy First Bank Luverne. The bank has 59.2 mln dlrs in assets. First Bank, which announced plans in 1985 to restructure its banking assets by offering to sell 28 of its banks with a total of 45 offices, said agreements have now been signed for 43 of these offices.  
AMERICAN INTERNATIONAL PETROLEUM TO BUY ASSETS. American International Petroleum Corp <AIPN> said it agreed to acquire for one mln dlrs the assets of a western Louisiana oil and gas company. American International would not identify the company. American said assets included nine leases totalling 2,600 acres, various working interests in 15 oil and gas wells on that property, all equipment and machinery necessary for operation, and a 50 pct interest in a nine-mile gas pipeline.  
ARMTEK <ARM> UNIT LEVERAGED BUYOUT COMPLETED. Condere Corp, formed by former managers of Armtek Corp, said it completed the acquisition of a tire plant and other assets of Armtek for undisclosed terms. In addition to a tire manufacturing plant, Condere bought S. and A. Truck Tire Sales and Service Corp, which operates 51 Sears Truck Tire Sales and Service Centers through a licensed agreement with Sears Roebuck and Co <S>. The plant will supply tires to Armtek's Armstrong Tire Co as well as to several Sears Centers. Condere said it expects first year revenues to be 90 mln dlrs.  
SCHLUMBERGER <SLB> MAY HAVE ALTERNATE BUYER. Schlumberger Ltd most likely has an alternate buyer lined up for its Fairchild Semiconductor unit, Wall Street analysts said. "I think its clear that in cancelling its agreement with Fujitsu, Schlumberger has signaled that it has another deal in the works," said Paul Johnson, a semiconductor analyst with L.F. Rothschild. "There are unquestionably other buyers out there," added Kidder Peabody analyst Adam F. Cuhney. "A lot of companies have looked at Fairchild and would be willing to buy it." Among the companies that would be interested in bidding for Fairchild are Advanced Micro Devices <AMD>, Sunnyvale, Calif., and LSI Logic Corp <LLSI>, Milpitas, Calif., industry analysts said. Top U.S. chipmakers like National Semiconductor Corp <NSM>, Texas Instruments Inc <TXN> and Motorola Inc <MOT> might also seek to buy Fairchild, but could possibly run into antitrust problems, the analysts added. Moreover, Fairchild's management is thought to be considering proposing a leveraged buyout of the Cupertino, Calif., company, analysts said. In a brief statement announcing the termination of the agreement with Fujitsu, Schlumberger said the decision opened up other possibilities, including a possible buyout by Fairchild management. The company said it ended the deal, in which Fujitsu would have bought 80 pct of Fairchild for an estimated 200 mln dlrs, because rising opposition to the deal by the Reagan administration made it unlikely that the sale could be completed within a reasonable period of time. Analysts questioned this explanation, however, arguing that the companies did not need government approval to complete the transaction. Both Schlumberger and Fujitsu are foreigned-owned companies. "Schlumberger would not have terminated the deal because the U.S. government didn't want it," said Johnson of L.F. Rothschild. A spokesman for Schlumberger declined to elaborate on the company's news release. He said only that the company was reviewing a number of possible alternatives for the Fairchild unit. Officials at Fairchild and Fujitsu were not immediately available for comment. Analysts noted the significance of the government's apparent success in preventing Fujitsu from taking control of Fairchild. Administration officials, including Commerce Secretary Malcolm Baldrige and Defense Secretary Caspar Weinberger, feared that the sale to Fujitsu would lead to Japanese control of key semiconductor technology for supercomputers and military weapons systems. "The government really stood up for the semiconductor industry," said Johnson of L.F. Rothschild. "That, I think, is the real significance of this." Consequently, analysts said, the Japanese government might now feel more pressure to address U.S. complaints about Japanese chipmakers' violation of the semiconductor trade agreement signed last summer.  
MCDERMOTT <MDR> SAYS STAKE VIOLATES LAW. McDermott International Inc said the purchase of a 5.4 pct block of its stock was an apparent violation of the laws of Panama, its country of incorporation. The company said a detailed disclosure of an acquisition offer must be made to the Panamanian National Securities Commission or to the target's board before acquiring more than five pct stake. It said transfers of securities in violation of these Panamanian regulations are invalid. The company was not immediately available to say who had acquired the 5.4 pct block of stock.  
ICAHN SAYS HE IS TARGET OF SEC INVESTIGATION. Corporate raider Carl Icahn acknowledged that he is one of the targets of an investigation by the Securities and Exchange Commission into possible violations of securities laws. Icahn, who heads and controls Trans World Airlines Inc <TWA>, made the acknowledgement in a filing TWA was required to make with the SEC disclosing its 14.8 pct stake in USAir Group. The SEC issued a formal order launching the private investigation on Nov 12, 1986, Icahn said in the SEC filing. The order empowers SEC investigators to try to find out whether any persons, including Icahn, violated securities laws and related rules, Icahn said. Specifically, the probe is examining the acquisition and subsequent sale of more than five pct of the stock of certain unspecified companies, he said. Federal law requires individuals or groups of individuals who have made shareholder agreements, to disclose stakes in companies of at least five pct within 10 days. Icahn has acknowledged that he has been subpoenaed in connection with SEC probes, but this is the first time he has disclosed that he is among those being investigated. By making the disclosure in a filing with the SEC, which is obviously already aware of its own probe, Icahn was also alerting current and potential shareholders of TWA. It is not uncommon for companies which are aware that they or their officers are the targets of government probes to acknowledge the existence of the otherwise secret investigations to fulfill their legal disclosure requirements to their shareholders. Icahn said the SEC is looking into whether he and others whom he did not name violated securities laws by acquiring and selling more than five pct of a company's stock. SEC investigations into those kinds of possible securities law violations have been spawned by the agency's widening probe into the Wall Street insider trading scandal, according to published reports. Making late filings of 13D forms, which disclose the amount of stock over five pct an investor has in a company, or making no filing at all could indicate a scheme to "warehouse" shares of stock. In a warehousing scheme, a group of investors acting in concert would each amass stock in the company without disclosing that they have an agreement among them. By failing to disclose that they are acting together the market is unware of the amount of stock of a company that is controlled by a group acting in concert. Last year, the SEC charged members of the wealthy Belzberg family of Canada with taking part in a warehousing scheme while it was accumulating stock in Ashland Oil Inc.  
AMERITRUST <AMTR> SELLS TWO MLN SHARES. Ameritrust Corp said it sold two mln shares of its common stock to an investment group named Clevebaco Ltd Partnership. The partnership is controlled by Alfred Lerner, and a subsidiary of the Progressive Corp <PROG> is the limited partner, according to the company. Ameritrust said it was advised that the Clevebaco group has filed an application with bank regulatory authorities seeking permission to acquire up to an additional three mln shares of Ameritrust common stock. The company said the group indicated to it that it had no hostile takeover intent toward Ameritrust, and that the purchase was for investment purposes.  
U.S. DECLINES COMMENT ON SCHLUMBERGER<SLB> MOVE. A U.S. Commerce Department spokesman said the agency would have no comment on Schlumberger Ltd's announcement that it had terminated an agreement in principle to sell its Fairchild Semiconductor Corp unit to Fujitsu Ltd. Sclumberger had said that controversy surrounding the venture made it unlikely the sale could be completed any time soon. The sale was opposed by Commerce and the U.S. Defense Department, in part on national security grounds. Commerce chief spokesman B.J. Cooper said the department had had no contact with Schlumberger about the deal. A Defense Department spokesman said the agency was unaware of Schlumberger's announcement and would have no immediate reaction. Officials last week told Reuters that Commerce Secretary Malcolm Baldrige and Defense Secretary Caspar Weinberger had joined forces to fight the planned sale because it could have left the U.S. military overly dependent on foreign sources for vital equipment used in high-technology weapons. Administration opposition to the deal also stemmed from ongoing trade tensions between the United States and Japan, officials said.  
CENTRAL PENNSYLVANIA <CPSA> BUYS STAKE IN FIRM. Central Pennsylvania Savings Association said it made a 30 pct investment in <Pinnacle Mortgage Investment Co>. Terms were not disclosed. Pinnacle, incorporated in 1985, generates about 60 mln dlrs in closed mortgage loans annually. Central Pennsylvania also said its directors recently approved a letter of intent to acquire Hamilton-Reliance Savings Association of Norristown, Pa.  
PACIFIC LIGHTING <PLT> CONSIDERS UNIT SALE. Pacific Lighting Corp said it is considering the sale of its land development line of business and will be initiating discussions with potential buyers. The book value of the company's investment in land development operations is 224 mln dlrs. The Pacific Lighting Real Estate Group earned 24.2 mln dlrs and employed 800 people during 1986, the company said. Alternatives to the sale being considered include a master limited partnership and an initial public offering of the equity in the land development companies, it said. Proceeds from the sale would likely be invested in Pacific Lightings' new specialty retailing line of business and its oil and gas operations, the company said. The investment banking firm Morgan Stanley has been retained to advise Pacific Lighting on the disposition of the land development operations. Completion of a transaction, it one is made, is expected by the end of the year, the company said.  
MLX <MLXX> UNIT AGREES TO BY ABEX UNIT. MLX Corp said a subsidiary has tentatively agreed to acquire a sintered friction materials business in Milan, Italy, from a unit of Abex Corp for undisclosed terms. The deal will close after obtaining Italian government approvals, expected in late April. The business, which will operated under the name S.K. Wellman, will become a member of MLX's specialty friction materials group. The business is a manufacturer of high-energy friction materials for heavy-duty transmissions and clutches.  
TWA <TWA> SEES BENEFITS IN USAIR <U> MERGER. Trans World Airlines Inc, which disclosed that it does not intend to seek control of USAir Group at this time, said it still believes a combination of the two airlines would have benefits to both. In a filing with the Securities and Exchange Commission, TWA, which is controlled by Carl Icahn, said it continues to closely watch the developments of USAir, which has an agreement to acquire Piedmont Aviation Inc <PIE>. TWA said it spent 178.2 mln dlrs to acquire its 4,043,200 USAir shares, which amount to 14.8 pct of its total outstanding common stock. TWA said it would not buy more USAir Group stock, at least for the moment. But it said it still believes a TWA-USAir combination would "create certain synergies that would be mutually beneficial to both carriers." TWA stressed that it reserved the right to revive its takeover attempt and said it may continue to explore the feasibility and strategies of gaining control of USAir. Further purchases of USAir stock would require the approval of the Department of Transportation, TWA said. Because of Department of Transportation rules, TWA also said it put its USAir stock into a voting trust with Fleet National Bank as the voting trustee. The voting trust agreement requires the bank to vote in favor of any acquisition agreement between TWA and USAir and to opposed any other merger of USAir.  
ADOBE <ADB>, HIGH PLAINS <HPOC> TO MERGE. Adobe Resources Corp and High Plains Oil Corp said they reached an agreement in principle under which High Plains will be merged into a unit of Adobe. Under terms of the agreement, the companies said each share of High Plains common stock not owned by Adobe or held in the High Plains treasury will be exchanged for 1.12 shares of newly issued Adobe common. The exchange, they said, will be made on the effective date of the merger, which must be approved by both companies' boards and High Plains' shareholders.  
CEASARS WORLD FILES SUIT AGAINST MARTIN SOSNOFF AND MTS ACQUISITION ON TENDER OFFER.  CEASARS WORLD FILES SUIT AGAINST MARTIN SOSNOFF AND MTS ACQUISITION ON TENDER OFFER  
COASTAL <CGP> HIT WITH TWO BILLION DLR LAWSUIT. TransAmerica Natural Gas Corp said it is seeking two billion dlrs in punitive and actual damages in a lawsuit it filed today against Coastal Corp, its chairman and certain Coastal affiliates. TransAmerica, a privately held company that has been in bankruptcy since 1983, said its suit alleges that Coastal and its chairman, Oscar S. Wyatt Jr, unlawfully interfered with agreements it previously reached with its creditors, causing the company significant damage. TransAmerica also said its suit, filed in state district court in Harris County, Texas, seeks injunctions against Wyatt and Coastal to enjoin them from interfering with its contractual agreements with its creditors. The company alleged that beginning in mid-1986, Coastal and its chairman took various steps to acquire its gas and other assets. Coastal has used TransAmerica's bankruptcy proceedings to engineer a hostile takeover attempt, the company charged. In its suit TransAmerican alleged that Coastal and Wyatt are "notorious corporate raiders who have been restrained in the past from taking over other corporations in their attempt to create a stranglehold position from which they could control and raise gas prices..." "It is obvious that Coastal's efforts to improperly take over TransAmerican is a thinly veiled attempt to control a larger share of the Texas gas market to the detriment of end users and consumers," the company alleged. Coastal could not be reached for comment. Company name is Transamerican.  
CAESARS WORLD <CAW> FILES SUIT AGAINST SOSNOFF. Caesars World Inc said it filed a lawsuit against Martin T. Sosnoff and MTS Acquisition Corp regarding its March 9 unsolicited tender offer for Caesars World stock. The company said it filed in the Federal Court in the Central District of California, charging the tender offer, which its board rejected, violated federal securities laws and federal margin regulations. The suit charges the offering materials are materially false and misleading and misstate and conceal material information required to be disclosed to shareholders. The suit also charges the offer is illusory and designed to manipulate the market in Caesars World stock to enable Sosnoff to sell the Caesars World stock he already owns for a substantial profit. The complaint seeks, among other things, to enjoin the tender offer and to require MTS and Sosnoff to correct false and misleading statements in the offer. Caesars World is expected to seek a friendly suitor, restructure operations, or buy back Sosnoff's holdings in an attempt to fight off the bid. Sosnoff holds about 13.6 pct of the company's stock.  
HARRIS UPS CENTERRE BANCORP <CTBC> STAKE. Harris Associates L.P., a Chicago investment advisor, said it raised its stake in Centerre Bancorporation to 508,062 shares, or 6.6 pct of the total outstanding, from 427,061 shares, or 5.5 pct. In a filing with the Securities and Exchange Commission, Harris said it bought 81,001 Centerre common shares between Jan 2 and March 4 at prices ranging from 36.00 to 39.75 dlrs a share. It said its dealings in the company's stock are on behalf of its clients.  
AERO SERVICES <AEROE> IN PACT FOR NOMINATIONS. Aero Services International Inc said it signed an agreement with Dibo Attar, who controls about 39 pct of its common stock, under which three nominees to Aero's board have been selected by Attar. In addition to Attar, the nominees are Stephen L. Peistner, chairman and chief executive officer of <McCrory Corp> and James N.C. Moffat III, vice president and secretary of <Eastover Corp>.  
HONGKONG BANK SAYS CLOSE TO DEAL ON PROPERTY SALE. Hongkong and Shanghai Banking Corp <HKBH.HK> is close to a deal on the sale of a commercial building in Hong Kong's Mongkok business district, a bank spokesman said. He said the 21-storey Wayfoong Plaza was likely to be sold for about 280 mln H.K. Dlrs but declined to identify the buyer. The spokesman gave no further details.  
NEW ZEALAND PRESS GROUP BUYS MORE TEXAS NEWSPAPERS. <Independent Newspapers Ltd> (INL) said it bought two more community newspapers in Houston, Texas, through a subsidiary there, for an undisclosed sum. INL said in a statement <Houston Community Newspapers Inc> bought the South West Advocate and the South Bend Advocate, with combined circulation of 74,000 copies, and associated assets, from <The Advocate Communications Corp Inc>. INL publishes Wellington's morning and evening newspapers as well as New Zealand provincial dailies and newspapers in Rhode Island. Just under 40 pct of INL is owned by <News Ltd>, an Australian subsidiary of News Corp Ltd <NCPA.S>. Production and administration of the two publications would be transferred to the company's existing centre in Houston. INL said the acquisition took effect on March 1. INL chairman Alan Burnet said the purchase would enable the subsidiary to offer advertisers a combined distribution of nine community newspapers to 340,000 homes in the greater Houston area. Trading conditions in the area are particularly difficult because the city's economy depends to a large extent on the fortunes of the petroleum industry, but the situation should improve in the medium to long term and the investment will prove to be sound, he said.  
FAIRCHILD DEAL FAILURE SEEN MAKING JAPANESE WARY. Schlumberger Ltd's <SLB.N> decision to end an agreement in principle for Fujitsu Ltd <ITSU.T> to buy 80 pct of its <Fairchild Semiconductor Corp>, and the political furore that surrounded the proposed sale, will make Japanese companies more cautious in their efforts to acquire U.S. High technology firms but will not halt such attempts, industry analysts said. The collapse of the deal will not be a critical blow to Fujitsu but it will boost the cost of future U.S. Expansion by the Japanese firm, said analysts polled by Reuters. "The acquisition of Fairchild is not essential to Fujitsu's North American operations, but it would have been a great boost," James Capel and Co analyst Tom Murtha said. French-controlled Schlumberger said yesterday it was ending the agreement because mounting political controversy in the U.S. Made it unlikely that the sale of the Fairchild stake could be completed in a reasonable time. The sale was opposed by the U.S. Commerce Department and Defence Department, partly on national security grounds. Fujitsu's acquisition of Fairchild would have given the Japanese computer maker control of a comprehensive North American sales and distribution system and access to microprocessor technology, an area where Fujitsu is weak, analysts said. The deal would also have given Fujitsu 14 additional microchip production facilities worldwide, eight of them in the U.S., A report by the Capel firm said. "It was an entry point, a port for semiconductors and a marketing channel for other things," said Barclays de Zoete Wedd analyst Rick May. Several analysts said the purchase would not have given Fujitsu access to critical defence technology. "(Fairchild) simply doesn't have key technology -- that's a thing of the past," May said. The failure could be a blessing in disguise for Fujitsu as it might have had to spend several hundred million dollars to modernise Fairchild's production lines, Capel's Murtha said. The failure of the deal will doubtless encourage Japanese firms to take a lower profile in attempts to acquire U.S. High tech firms but they are unlikely to stop, analysts said. Most analysts said Fujitsu was likely to go the more costly route of expanding its own production and distribution facilities in the U.S., Although some said it could use the estimated 200 mln dlrs set aside for buying Fairchild to try to acquire some less politically symbolic firm. "It may slow the pace of Japanese acquisitions, but the necessity of expanding their production and design capacity in America remains," said Capel's Murtha. "The Japanese will continue to shop for bargains, but it will be harder to find ones that are politically acceptable." Japanese firms are likely to favour joint ventures or smaller equity stakes in firms to avoid the political backlash that blocked the Fairchild sale, analysts said. "They're not going to slow up, they're just going to buy smaller pieces ... Because of the political risk," said Barclays de Zoete's May. Several Japanese firms have already taken 10 to 30 pct shares in smaller U.S. High technology firms such as super minicomputer makers, he said. Opposition of the sort that blocked Fujitsu could end up harming U.S. Firms and undermining a trend toward multinational tie-ups, some analysts said. "This is not really of benefit to U.S. Firms either," said Jardine Fleming (Securities) Ltd analyst Nick Edwards. "The pooling of resources in semiconductors is a positive move -- why should the government step in to prevent it?" Japan's Minister of International Trade and Industry Hajime Tamura told a press conference that interference by U.S. Government officials in the Fairchild deal was inappropriate. "This is entirely a private sector matter and not a matter for governments' comment," Tamura said. "I think it was improper for U.S. Government officials to intervene to the extent they did," he said. A spokesman told Reuters the ministry's view is that international investment flows ought to be free and that such flows are of increasing importance in line with the growing closeness of U.S.-Japanese economic ties.  
HANSON SELLS FINLAYS UNIT FOR 16.9 MLN STG. Hanson Trust Plc <HNSN.L> said it will sell its Finlays confectionery, tobacco and newsagent business to a specially formed company, <Finlays Plc> for an estimated 16.9 mln stg cash. The chain of stores was acquired when Hanson took over <Imperial Group Plc> last year.  
COMMERCIAL INTERNATIONAL <CMMC> MAKES PURCHASE. Commercial International Corp said it has completed the previously-announced acquisition of most of the assets of Growers Distributing International Corp, a table grape marketer, for an undisclosed amount. It said the entire purchase price will be payable over a three-year period and based on a percentage of pre-tax earnings of the acquired operation. The company said it has an option to acquire Growers' cold storage facility and related assets in Tulare County, Calif. Growers is owned by Commercial chairman Sid Schuman Jr. and director Arnold T. Cattani Jr.  
<TIMEX CORP> SELLS UNIT. <Swiss Corp for Microelectronics and Watchmaking Industries> said it has acquired International time corp from privately-held Timex corp for undisclosed terms. International Time is exclusive distributor of Swiss Corp's Tissot watches in the U.S.  
<WAVEHILL INTERNATIONAL INC> MAKES PURCHSE. Wavehill International Ventures Inc said it has completed the previously-announced acquisition of Personal Computer Rental corp for 500,000 restricted common shares, giving former shareholders of Personal Computer a 25 pct interest in the combined company.  
KOHLBERG KRAVIS HAS 96 PCT OWENS-ILLINOIS <OI>. OII Holdings Corp, a company formed by Kohlberg Kravis Roberts and Co, said it received and purchased about 58.3 mln shares or 96 pct of Owens-Illinois Inc common stock and 50,275 of 4.75 dlr cumulative convertible preference shares of Owens, or about 83 pct. The company said its tender offer for all common and preference shares expired last night. It said Owens-Illinois will be merged into a subsidiary of OII Holdings on March 24. Common shares not bought in the offer will be converted into the right to receive 60.50 dlrs per share in cash, the tender price.  The preference stock has been called.  
SHAMROCK HOLDINGS UNIT AQUIRES SOFTWARE COMPANY. <Shamrock Holdings Inc> said its subsidiary, Shamrock Holdings of California, acquired controlling interest in <DBMS Inc> through the purchase of 575,000 shares of its preferred stock. The company said the stock was purchased for an undisclosed amount from an unnamed group of investors. Shamrock said Raymond Nawara, a former executive vice president of DBMS, a privately-held software company, also granted it options and voting rights on a major portion of his shares of common stock.  The combination of preferred and common stock holdings permit Shamrock and Nawara to exercise voting control over approximately 53 pct of the shares of the company. Shamrock also said Nawara has been elected president of DBMS and one of its directors.  
CREDIT AGRICOLE REPLACES BNP IN HACHETTE TV BID. French state agricultural bank <Caisse Nationale du Credit Agricole> has joined the group led by publishing house <Hachette> which is bidding for control of the state television station TF1, replacing <Banque Nationale de Paris> which has withdrawn, Hachette said in a statement. Credit Agricole's stake in the consortium will be 3.5 pct. Last week the broadcasting supervisory board asked Hachette to remove BNP from the consortium because the bank had acted as adviser to the government for the imminent privatisation of TF1.  
FRANCE APPROVES WATERMAN ACQUISITION BY GILLETTE. Gillette Co <GS> exercised an option to take a 51.2 pct stake in the French pen firm Waterman which it had previously been authorised to do by the French government, the French stockbrokers' association (CSAC) said. Gillette has given an undertaking to intervene on the Bourse until April 7 to prevent Waterman shares from falling below 650 francs, it added. This compares with yesterday's rate of 625 francs. Under the agreement concluded last November between Waterman owners Francine and Grace Le Foyer-Gomez and Alice Lundgren and the Gillette group, Gillette agreed to acquire 51.2 pct of the capital of Waterman at 700 francs a share. Gillette is buying a total 180,000 shares, valuing the deal at 126 mln francs.  
ATICO FINANCIAL <ATFC> TO MAKE ACQUISITION. Atico Financial Corp said it has executed a definitive agreement to acquire 93.5 pct of Intercontinental Bank of Dade County, Fla., from Intercontinental Bank Holding Co for an undisclosed amount of cash and common stock. It said closing is subject to regulatory approval. Atico said in connection with the acquisition it will apply to become a registered bank holding company and convert its 99 npct owned Atico Savings Bank subsidiary to a state-chartered commercial bank. Intercontinental had year-end assets of about 487 mln dlrs. Atico had year-end assets of about 534 mln dlrs.  
BAKER INTERNATIONAL TO SELL ELECTRIC SUBMERSIBLE OILWELL PUMP UNIT.  BAKER INTERNATIONAL TO SELL ELECTRIC SUBMERSIBLE OILWELL PUMP UNIT  
BAKER <BKO> TO SELL OILWELL PUMP UNIT. Baker International Corp said it has signed a definitive agreement to sell the assets and business of the electric submersible oilwell pump product line in the continental U.S. of its Baker Oil Tools Inc subsidiary to Trico Industries Inc <TRO> for an undisclosed amount of cash and other consideration. The company said the transaction is subject to Hughes Tool Co <HT> and Baker shareholder approval of the Baker/Hughes merger. The U.S. Justice Department has announced that it will require divestiture of the product line for approval of the merger. Baker said the transaction is subject to approval by the Justice Department and the boards of Baker, Hughes and Trico.  
CLABIR <CLG> UNIT AGRES TO BUY POPSICLE CANADA. Clabir Corp said its 86 pct owned affiliate, Ambrit Inc <ABI>, has agreed to acquire the Popsicle Industries division of <Sara Lee Corp of Canada Ltd> for about 37 mln Canadian dlrs in cash. Clabir said the purchase from the Sara Lee Corp <SLE> subsidiary is worht about 28 mln U.S. dlrs. The agreement is subject to Canadian regulatory approval. Popsicle Canada, through its 19 licensees, is the largest maker and distributor of frozen novelty products in Canada, Clabir added.  
ADAMS-RUSSELL ELECTRONICS <AARE> IN PURCHASE. Adams-Russell Electronics Co Inc said it has acquired Hermetronics PLC, a maker of hermetic integrated circuit packages, for about 600,000 dlrs. The company said HErmetronics is expected to have sales of over 800,000 dlrs for the year ending this month.  
MEMORY PROTECTION <MPDI> SEES BOGEN CLOSING. Memory Protection Devices Inc said it expects to close the previously announced acquisition of the assets and liabilities of Bogen, a division of <Lear Siegler Inc>, on April one. Memory Protection Devices said it received a senior loan commitment letter as well as the requisite waiver under the New Jersey Environmental Control Reclamation Act, both of which are necessary to complete the acquisition. It declined to provide further details.  
CANADIAN FOREMOST CONTINUES MACEDON SALE TALKS. <Canadian Foremost Ltd>, earlier reporting lower 1986 net profit, said negotiations are continuing concerning the previously announced sale of the company's 49 pct interest in <Macedon Resources Ltd>. If concluded, the sale would be refelected in the company's 1987 results, Foremost said without elaborating. It also said lower revenues from the last half of 1986 are expected to continue during 1987, but a strong cash and working capital position will enable Foremost to go on developing traditional and new markets. It earlier said 1986 earnings fell to 1,042,000 dlrs from year-ago 2,510,000 dlrs.  
TEXAS INTERNATIONAL <TEI> COMPLETES RESERVE SALE. Texas International Co said it has completed the previously-announced 120 mln dlr sale of its domestic oil and natural gas reserves to <Total Compagnie Francaise des Petroles>. It said on closing it used part of the proceeds to retire all 100 mln dlrs of its U.S. bank and U.S. senior debt and the rest will be used for general corporate purposes.  
QINTEX AGAIN EXTENDS PRINCEVILLE <PVDC> OFFER. <Qintex America Ltd> said its offer for 3.3 mln Princeville Development Corp shares has been extended to March 19 from March 18. As of yesterday, Qintex said, 7,060,197 Princeville shares had been tendered in response to the offer and not withdrawn, down from over 7.2 mln on March 10. Qintex said it is extending the offer to allow Princeville shareholders to assess the sale announced last week of Princeville Airways Inc to Aloha Inc <ALO>, adding a supplement to the Quintex offer further detailing the agreement with Aloha will be distributed later today.  
TM COMMUNICATIONS <TMCI> COMPLETES PURCHASE. TM Communications Inc said it has completed the acquisition of radio station KNSS-FM of Reno, Nev., for about 2,500,000 dlrs in cash.  
PEOPLES HERITAGE <PHBK> TO MAKE ACQUISITION. Peoples Heritage Bank said it has agreed to purchase Northeast Leasing Co Inc, a Portland, Maine lessor of office equipment, for about 43,000 common shares. It said Norhteast had year-end receivables of 2,700,000 dlrs.  
OWENS-CORNING <OCF> COMPLETES SALE OF PLANTS. Owens-Corning Fiberglas Corp said it has completed the previously-announced sale of its three foam products plants to Atlas Roofing Corp for undisclosed terms. The sale is part of its restructuring, the company said.  
ROYAL RESOURCES <RRCO> MAKES ACQUISITION. Royal Resources Corp said it has exercised its optioon to purchase Montagu Mining Investments Inc from <Samuel Montagu Ltd> of London for 3,600,000 dlrs in cash and 200,000 common shares. The company said Montagu's main asset is a 10 pct interest in the Hog Ranch Joint Venture, which operates the open cut heap leach Hog Ranch gold mine in Washoe County, Nev.  The mine now produces gold at over 50,000 ounces a year. It said after nine months following closing, Montagu may require Royal to register the 200,000 shares for sale. Royal said from six months after closing until one year after, Montagu also has the right to require Royal to repurchase any or all of the 200,000 shares at 4.50 dlrs each.  
IRVING TRUST <V> BUYS GULF/WESTERN <GW> UNIT. Irving Bank Corp said it bought the factoring division of Associates Commercial Corp, a unit of Gulf and Western Co Inc's Associates Corp of North America. The terms of the previously announced deal were not disclosed. It said the assets were transferred to Irving Commercial Corp.  
SPENDTHRIFT FARMS <SFI> GETS BID FOR CONTROL. Spendthrift Farm Inc said it has received three tentative proposals to acquyire control of the company. It said it is evaluating the proposals and will not comment further unless a definitive agreement is reached.  
TAFT CHAIRMAN'S GROUP RAISES TAFT BROADCASTING BID TO 150 DLRS/SHARE.  TAFT CHAIRMAN'S GROUP RAISES TAFT BROADCASTING BID TO 150 DLRS/SHARE  
DEVELOPMENT CORP OF AMERICA <DCA> MERGED. Development Corp of America said its merger with Lennar Corp <LEN> was completed and its stock no longer existed. Development Corp of America, whose board approved the acquisition last November for 90 mln dlrs, said the merger was effective today and its stock now represents the right to receive 15 dlrs a share. The American Stock Exchange said it would provide further details later.  
TEVA <TEVIY> SELLS PROMEDICO SUBSIDIARY. Teva Pharmaceutical Industries Ltd, based in Israel, said it sold its wholly owned Promedico subsidiary, to foreign investors for four mln dlrs. It said the book value of the unit is about 2.2 mln dlrs. Teva said it will continue to market Promedico's products through its wholly owned subsidiary, Salomon, Levin and Elstein Ltd.  
K MART <KM> ENDS TALKS TO SELL STORES. K Mart Corp said recent talks to sell 65 remaining Kresge variety stores and their underlying real estate to F.W. Woolworth Co <Z> have ended. Robert Stevenson, K Mart vice president, told Reuters the talks, which began about six weeks ago, ended. He declined to give a reason. Kresge is the forerunner of what is now the K Mart chain. The name was changed to K Mart in 1977, Stevenson said. "We're selling and buying real estate in our real estate division, and Woolworth was interested in some of our properties. The talks were of a casual nature," he said. The 65 Kresge stores that are scattered around the country in downtown and suburban locations, he said. Stevenson said K Mart will continue to operate the stores. "The stores are profitable. The only decision K Mart has made is that we will continue to operate them," he said Kresge had been a nationwide chain of 900 variety stores.  
DUDLEY TAFT RAISES BID FOR TAFT BROADCASTING<TFB>. Dudley Taft and Narragansett Capital Inc said it was prepared to raise its bid to acquire Taft Broadcasting Co to more than 150 dlrs per share. Taft, through Theta Co, sent and letter to Taft's board of directors stating he was committed to purchasing the broadcasting company and was ready to discuss all aspects of the purchase. The company said items to be discussed included price, structure and form of consideration. Taft said he was prepared to negotiate a transaction in which Taft Broadcast shareholders would receive in excess of 150 dlrs per share.  
ALLWASTE <ALWS> TO BUY RELATED COMPANY. Allwaste Inc said it entered into an agreement in principle to acquire all the outstanding common of a related air-moving and industrial services company. It did not disclose the name of the company. Allwaste, which preforms air-moving and related services, said it will swap shares of its common, valued at 2.6 mln dlrs, with the company it is acquiring. It said the acquisition is subject to negotiation of a final agreement.  
SOROS GROUP HAS B.F. GOODRICH <GR> STAKE. An investor group led by New York investor George Soros said it acquired a 6.1 pct stake in B.F. Goodrich Co common stock as an investment. The group said it paid about 69 mln dlrs for the 1,389,600 Goodrich shares, which are being held by Quantum Fund N.V., a Netherlands Antilles investment firm advised by Soros. It said all the shares were bought between Dec. 29 and March 9. The group said it reserved the future right to buy additional shares and to formulate other purposes or plans regarding its Goodrich investment.  
TAFT BROADCASTING SAYS IT WILL CONTINUE TO REVIEW OPTIONS IN RESPONSE TO LATEST BID.  TAFT BROADCASTING SAYS IT WILL CONTINUE TO REVIEW OPTIONS IN RESPONSE TO LATEST BID  
COURT ENJOINS ZICO INVESTMENT'S TENDER FOR BANCROFT CONVERTIBLE FUND.  COURT ENJOINS ZICO INVESTMENT'S TENDER FOR BANCROFT CONVERTIBLE FUND  
STEINHARDT GROUP HAS 6.6 PCT OF HOLIDAY <HIA>. A group led by New York investor Michael Steinhardt told the Securities and Exchange Commission it bought a 6.6 pct stake in Holiday Corp common stock as an investment. The group said it paid 114 mln dlrs for its 1.6 mln Holiday shares, 530,000 of which were bought since Feb. 6. At the same time, group members said they held short positions in the stock totaling 830,000 shares. In addition to Steinhardt himself, the group includes Steinhardt Partners and Institutional Partners, two investment firms of which Steinhardt is one of the general partners.  
COURT ENJOINS TENDER FOR BANCROFT <BTV>. Bancroft Convertible Fund said the U.S. District Court for the District of New Jersey issued a preliminary injunction, enjoining <Zico Investment Holding Inc's> tender offer for Bancroft. It said the Court order prevents Zico from buying any shares tendered to them during the offer, which began on Feb. 17, 1987. In the tender offer blocked by the Court, Zico offered to buy 500,000 shares, or about 22 pct of Bancroft's outstanding stock, for 30 dlrs a share. Previously, Zico had bought 965,000 Bancroft shares for 31 dlrs a share, giving it about 28 pct of the company. If the recent offer had gone through, the Zico would have owned slightly more than 50 pct of Bancroft's outstanding shares.  
TAFT <TFB> TO CONTINUE TO REVIEW ALTERNATIVES. Taft Broadcasting Co said its board continues to explore alternatives, such as a possible financial restructuring, in response to a Theta Corp offer of 150 dlrs per share for Taft stock. Last week Taft rejected a 145 dlr-a-share bid by Theta, an investment group headed by Taft's vice chairman, Dudley Taft. Taft also said the new proposal would be submitted to the board but no decision had been made with respect to the sale of the company. In the proposal, Theta said it was prepared to discuss all aspects of the offer including price, structure and form of consideration and would be prepared to negotiate a transaction in which shareholders would receive a value in excess of 150 dlrs per share. Taft said Theta requested that the company cooperate and provide it with information subject to an appropriate confidentiality agreement. The company declined to comment beyond this statement.  
ATT-PHILIPS BID FOR CGCT OUTLINED. American Telephone and Telegraph Co and Philips Telecommunications BV (APT) would hold 36 pct through direct and indirect holdings in France's <Cie Generale de Constructions Telephoniques> if a joint bid with French partners for the soon-to-be-privatised firm succeeds, a director at one of the partner firms said. Marc Mathieu of <Societe Anonyme de Telecommunications> SAT, told journalists the bid foresaw a direct stake of 20 pct for APT, the joint firm set up by the U.S.'s ATT <T.N.> and the NV Philips Gloeilampenfabrieken <PGLO.AS>. The other 80 pct would be owned by a holding company made up of SAT, APT, Cie du Midi <MCDP.PA> and five mutual funds. Under French law, foreign investors are restricted to a 20 pct direct stake in privatised companies but can boost their stake to 40 pct through indirect holdings. The make-up of the holding company, however, is subject to close discussions within the government due to legal queries over the nationality of the mutual funds, a Finance Ministry official said. Although bought by French citizens they are managed by foreign banks <Morgan Guaranty Trust Co of New York> and <Banque de Neuflize, Schlumberger, Mallet SA>, controlled by Algemene Bank Nederland NV <ABNN.AS>, an SAT spokesman said. CGCT, which controls 16 pct of the French public telephone switching market, is to be sold by the government for 500 mln francs by private tender. Five groups are bidding for the company and the government has said it will choose CGCT's new owner by the end of April. APT vice-president Wim Huisman told a news conference a capital increase was envisaged if SAT-APT wins CGCT, but declined to give details or say how an increase would affect foreign stakes in CGCT. In 1985, CGCT posted losses of 200 mln francs on sales of three billion after 1984 losses of 997 mln francs. A joint SAT-APT statement added that buyers were committed to investing 240 mln francs in CGCT research and production plants. The APT-SAT offer includes a provision for CGCT to produce APT 5ESS-PRX switching technology and adapt it to French standards. The tender was launched after a 1985 draft agreement for ATT to take over CGCT was abandoned following the introduction of the French government privatisation laws which reopened bidding among a wider range of applicants. Other candidacies to take over CGCT include West Germany's Siemens AG <SIEG.F> allied with Schneider SA <SCHN.PA> subsidiary Jeumont-Schneider, Sweden's Telefon AB LM Ericsson <ERIC.ST> allied with Matra <MATR.PA> and Bouygues SA <BOUY.PA>, Italy's <Italtel>, and Canada's Northern Telecom Ltd <NTL.TO>.  
TOUSSIE GROUP SELLS HECK'S <HEX> SHARES. A shareholder group led by New York investor Robert Toussie told the Securities and Exchange Commission it sold off most of its holdings in Heck's Inc common stock but reserved the right to again seek control of the company in the future. The group, which includes the Edward A. Viner and Co brokerage, said it sold 579,600 shares since March 5, leaving it with 157,000 shares or 1.8 pct of the total outstanding. The group had proposed a takeover of Heck's in September but later withdrew the offer, and Heck's on March 5 filed for protection from its creditors under federal bankruptcy law.  
CYCLOPS <CYL> HOLDER WITHDRAWS TAKEOVER MOTION. <Dixons Group PLC>, which is in a battle with <CYACQ Corp> for control of Cyclops Corp, said a Cyclops shareholder had agreed to withdraw a motion in U.S. District Court to prevent Dixons from completing its tender offer for Cyclops, which expires 2400 EST today. Dixons did not name the shareholder and did not disclose the holder's stake in Cyclops.  
FIRM HAS COOPERVISION <EYE> STOCK, WILL BUY MORE. Siebel Capital Management Inc, a California investment adviser, told the Securities and Exchange Commission (SEC) it bought 1.3 mln CooperVision Inc common shares or 5.9 pct of the total outstanding. In its SEC filing, the firm said it "intends to acquire more stock and may attempt to influence management of the company to make major changes in the company's business or corporate structure." Siebel said it made net purchases of 163,200 CooperVision shares since Jan. 1.  
AMERICAN CYANAMID <ACY> BUYS U.K. COMPANY. American Cyanamid Co said it bought the 50 pct interest of Cyanamid Fothergill Ltd held by <Fothergill and Harvey PLC>, making the unit a wholly owned subsidiary. The unit manufactures structural materials, including advanced composites, adhesives, and aluminum honeycomb for the European space industry. The current management will remain in place and the unit will continue at its locations in Wrexham, U.K., the company said.  
GROUP BOOSTS GELCO <GEL> STAKE TO 8.2 PCT. An investor group including New York-based Mutual Shares Corp and Mutual Qualified Income Fund Inc told the Securities and Exchange Commission it raised its stake in Gelco Corp common stock to 575,859 shares or 8.2 pct of the total outstanding. The group said its most recent purchases included 241,000 shares bought between January 21 and March 10. The group said it purchased the shares for investment purposes.  
VTX ELECRONICS <VTX> SETS SDTOCK SPLIT. VTX Electronics Corp said its board declared a five-for-four stock split, payable April Nine to holders of record March 27.  
COASTAL (CGP) SEES INCREASE IN 1987 PROFITS. Coastal Corp said it expected earnings for 1987 "to be significantly above" profits of 71.6 mln dlrs last year. In a letter to shareholders appearing in the company's newly-issued 1986 annual report, Coastal chairman Oscar Wyatt did not elaborate on how much earnings were expected to increase. The 1986 profits of Coastal, a natural gas production and pipeline company, were halved from 1985 levels due to slumping energy prices. The company's sales totaled 6.7 billion dlrs last year. Coastal also said it sold its natural gas for an average price of 2.17 dlrs per mcf in 1986, a drop of 18 pct from the previous year. Oil and natural gas liquids sold for an average 14.20 dlrs a barrel in 1986, a reduction of 37 pct. The Houston-based company, which produced a daily average of 120 mln cubic feet of gas and 11,149 barrels of oil, said it had proved reserves at yearend 1986 of 28.6 mln barrels of oil and 954 billion cubic feet of natural gas. Average reserve replacement costs were 8.28 dlrs per barrel of oil equivalent during the past three-year period, representing a little more than half of the industry average, the company said. Coastal's more than 800 gasoline retail outlets were operated profitably during 1986 "and are expected to continue to do so," the company said.  
NORSTAR <NOR> SETS ACQUISITION FOR STOCK. Norstar Bancorp said it has agreed in principle to acquire United National Bank of Callicoon, N.Y., by exchanging three Norstar common shares for each of the 201,660 United shares outstanding. Based on the recent price of Norstar's stock, it said, the proposed tax-free exchange would have a market value of about 20 mln dlrs. Norstar said the acquisition is subject to approval by United's holders and state and federal regulators. United has assets of 90 mln dlrs.  
FORTUNE SAVINGS TO BUY FINANCIAL <FSSL> BRANCH. <Fortune Savings Bank> said it agreed to buy the deposits and assume the leasehold of a Financial Security Savings and Loan Association <FSSL> branch here. Terms of the agreement were not disclosed. Fortune said the agreement is subject to regulatory approval. It also said that if the transaction is approved, Financial would generate a profit on the sale.  
TAFT <TFB> STOCK RISES ON PROPOSAL. Taft Broadcasting Co stock rose almost three points today as its vice chairman and an investment group proposed to sweeten a takeover offer for the company. However, several arbitragers said they would shy away from the stock at its current price levels since it is unclear how high bidding for the company would go and whether the company would agree to a takeover. "There are too many uncertainties," said one arbitrager. Taft stock rose 2-7/8 to 155-3/4. Dudley Taft, Taft vice chairman, and Narragansett Capital Inc said they sent a letter to the Taft board, stating they were committed to pursuing acquisition of the broadcast company and were prepared to negotiate a transaction in excess of 150 dlrs per share. The company responded that the proposal would be submitted to the board of directors, but that no decisions have yet been made on a sale of the company. "Someone's betting this company will go for 170 (dlrs per share)," said one arbitrager. Arbitragers said the stock is a risky buy at current levels, unless an offer was accepted in the 170 dlr per share range. They said to make an arbitrage investment at this level would be chancy since it will take a long time for any transaction to be completed because of regulatory approvals necessary for the broadcast properites. Taft earlier rejected a 145 dlr per share or 1.35 billion dlr bid from the investment group. The company said it rejected the bid as inadequate based on advice of Goldman, Sachs and Co, its financial adviser. It said it would consider alternatives such as restructuring. Arbitragers speculated a bidding war may erupt for Taft, which has two large shareholders in an investment group led by Robert Bass and Carl Lindner, chairman of American Financial Corp. The Bass group holds 25 pct of Taft and Lindner holds 16.2 pct. The Taft family, which founded the company almost 50 years ago, has about 12 pct. Lindner last week told the Securities and Exchange Commission he may be interested in making a bid for Taft. "I could see if things got really crazy that it might go for 175 (dlrs per share)," said one arbitrager, but he speculated it probably would not even be taken over for more than a price in the 160s. Another speculated that Lindner might bid, but he speculated the investor would not really be interested in running the company. Lindner was unavailable for comment. Dennis McAlpine, an analyst with Oppenheimer and Co, said he had speculated the company might be considering a leveraged buyout. "Ideally, you'd have to break this thing up to satisfy all the interests involved," he said, adding the two largest shareholders might be interested in pieces of Taft. He said the highest takeover price he calculated for the company has been about 140 dlrs per share, but that the highest estimates on Wall Street have been about 160. He said the latter would be based on more optimistic expectations for the broadcast industry.  
MIDWAY AIRLINES <MDWY> SETS HOLDER RIGHTS PLAN. Midway Airlines Inc, which has frequently been mentioned as an acquisition target, said it declared a shareholder rights plan. Holders will get a dividend of one preferred share purchase right on each outstanding share of common stock. Each right, when exercisable, will entitle the holder to purchase one one-hundredth share of Series C Junior Participating preferred stock for 50 dlrs. The rights are intended to assure that all holders receive fair treatment in the event of a takeover. The company said this is not in response to a known effort to acquire control. The rights will be exercisable 10 days after a person or group buys 20 pct of the company's common, or announces or commences a tender offer that would result in acquisition of 30 pct or more of its common. Midway can redeem the rights at two cts each at any time prior to expieration of 10 days after the acquisition by any person of 20 pct or more of the companyt's common, it said. If Midway is acquired, each right will entitle its hodler to purchase a number of the acquiring company's common shares having a market value at that time of twice the right's exercise price. The dividend will be payable to holders of record April six, and expire 10 years later on April 6, 1997.  
<TEMCO SERVICE INDUSTRIES INC> MERGER ENDED. Temco Service Industries Inc said its proposed buyout by chairman Herman J. Hellman and president Harvey Newwman has been terminated by mutual consent, and Temco has no present intention of being acquired by any other party.  
PENTRON CORP <PEN> UNIT TO BUY ICE CREATIONS. Pentron Corp said its Rotational Molding Inc unit has purchased privately held Ice Creations Unlimited for an undisclosed amount of cash and other considerations. The company said Ice Creations had sales of 1.2 mln dlrs in the year ended May 31, 1986. Ice creations is a molder of plastics.  
ALLEGHENY BEVERAGE SAYS GROUP INTERESTED IN ACQUIRING ITS SERVICE AMERICA CORP UNIT.  ALLEGHENY BEVERAGE SAYS GROUP INTERESTED IN ACQUIRING ITS SERVICE AMERICA CORP UNIT  
ALLEGHENY BEVERAGE <ABEV> EXPLORES UNIT SALE. Allegheny Beverage Corp said it has been approached by a group interested in acquiring its foodservice unit, Service America Corp. The group includes senior management of Service America but no officers of Allegheny Beverage, the company said. The company has agreed to permit the group and its potential lenders to perform a due diligence review of Service America, it said. Allegheny noted it had previously cancelled plans to spin off the foodservice subsidiary. The company said the group's review is preliminary and there is no assurance that an acquisition proposal will be made or, if made, accepted. Service America had fiscal 1986 revenues of about 934 mln dlrs, or about 83 pct of Allegheny Beverage's total revenues of 1.13 billion dlrs for the year ended March 29, 1986, a spokesman for Allegheny Beverage said. He declined to identify the Service America officials in the acquisition group. On Feb 18, 1987, Allegheny said it was cancelling the spin off of Service America, but gave no reason for doing so. It said it would place major emphasis on managing Service America to improve operations and increase earnings at the unit. Service America, which Allegheny acquired in May 1985, operates cafeterias and food and beverage vending machines. Through other subsidiaries, Allegheny provides coin-operated laundry services, building maintenance services and retail office and furniture operations. In fiscal 1986, Allegheny reported earnings from continuing operations of 8.2 mln dlrs or 1.09 dlrs a fully diluted share, excluding income of 59.7 mln dlrs from discontinued operations and an extraordinary loss of 8.1 mln dlrs. In May 1985, Allegheny sold its Pepsi-Cola Bottling Co unit to Pepsico Inc <PEP> for 160 mln dlrs. Including discontinued operations and the special item, net income was 59.8 mln dlrs or 6.21 dlrs a share fully diluted.  
CROSS BOOSTS FROST AND SULLIVAN <FRSL> HOLDINGS. A shareholder group led by New York investor Theodore Cross said in a Securities and Exchange Commission filing that it boosted its stake in Frost and Sullivan Inc common stock to 208,800 shares or 13.7 pct of the total outstanding. The group said Cross bought 17,000 shares in the open market between Feb. 17 and March 10. The group had said previously that its Frost and Sullivan share purchases were for investment.  
PERU TO SELL 40 STATE FIRMS TO CUT BUDGET DEFICIT. peru will sell about 40 state-owned firms to trim a projected 740 mln dlrs loss this year among government-owned companies. Some companies would be sold in their entirety and others would be privatised only partially, according to jose palomino, president of the government's state company holding firm, the national development council (conade). He told reporters in a radio interview that the aim was to slim a projected public sector firm deficit of 11 billion intis. He did not say if foreigners would be allowed to buy all or part of the companies. Independent economists warn that the deficit could push inflation to between 60 and 100 pct in 1987, against the govenment target of 40-50 pct. Palomino said aeroperu, the government flagship airline with a 10-jet fleet, would issue stock for purchase by private investors. The company in 1986 registered its first profit in eight years, earning about 44.6 mln intis in pre-tax profits. Peru has about 140 non-financial state firms. Palomino said the government would soon publish a list of those to be sold, including those whose shares would be offered on the lima stock exchange. Last november, palomino said conade's plans included the possible sale of a company producing palm oil and another manufacturing electrical appliances. Shares could also be sold in a copper mine, empresa nacional tintaya sa, in the southern state of  arequipa. Neither Palomino nor conade's general manager, enrique estremadoyro, were available for comment on whether foreigners would be allowed to purchase the companies. Their secretaries said they were out of their offices. Jose antonio almenara, the general manager of the lima stock exchange, where shares of the state-owned firms could be sold, told reuters that the only foreigners who could purchase stock at the exchange had to be tax-paying residents of peru. He said foreign stockholders cannot remit profits abroad until at least july 1988.  
NORSTAR <NOR> TO BUY CALLICOON BANK. Norstar Bancorp said it reached an agreement in principle to buy United National Bank of Callicoon through a stock exchange valued at 20 mln dlrs. Under terms of the agreement, Norstar would buy all 201,660 shares of United's common stock at a rate of three Norstar shares for each United share. With year-end assets of 90 mln dlrs, United has branches six upstate New York cities, all of which will become part of Norstar Bank of the Hudson Valley, N.A. Norstar is an 11.1 billion dlr multibank financial services company.  
HEALTHVEST <HVT> BUYS TENNESSEE MEDICAL COMPLEX. Healthvest said it acquired the Eastwood Hospital medical complex in Memphis from Healthcare International Inc for 50 mln dlrs cash. Healthcare International will continue to operate the hospital under a lease agreement, the company said.  
VENTRA BUYS JOINT VENTURE LEASING. Ventra Management Inc, an over the counter company, said it acquired Joint Venture Leasing Inc for 60 mln Venture shares, valued at 3.6 mln dlrs. Joint Venture was organized in September 1986 to establish leasing joint ventures with manufacturers and vendors of computer equipment. As a result of the acquisition and Joint Venture's backlog, Ventra said it expects 1987 sales to be 30 mln dlrs with net profits of 1.5 mln dlrs. Ventra was organized in September 1986 and completed a public offering of 30 mln shares in January 1987.  
OXFORD FINANCIAL BUYS CLANCY SYSTEMS. <Oxford Financial Inc> said it acquired <Clancy Systems International Inc> for an undisclosed sum. The company said Clancy has developed a fully automated parking citation system, currently in use in Oklahoma City, the University of California at Sacramento, and in a pilot program in San Francisco.  
GRACE <GRA> COMPLETES RETAIL UNIT SALE. W.R. Grace and Co said it completed the sale of its Bermans The Leather Experts retail business to a new company in a management led buyout. Grace received 99.3 mln dlrs cash and will record a pretax gain of about 37 mln dlrs in the first quarter, the company said. An additional pretax gain of 19 mln dlrs will be deferred until realization is more fully assured, it said. The diversified chemical and industrial company said the sale completes its program to divest retail operations. In addition to the cash payment, Grace received warrants to buy up to 47.5 pct of the new company and has reinvested about 19 pct of the proceeds in debt of the new firm. Financing was provided by Prudential Insurance Co of America and affiliates.  
LENNAR <LEN> COMPLETES ACQUISITION. Lennar Corp said it completed the previously announced acquisition of Development Corp of America <DCA>. Consequently, it said the American Stock Exchange suspended trading of Development Corp's common stock, 10 pct subordinated debentures due 1993 and 12 pct subordinated debentures due 1994. Lennar said the debentures will continue to be traded over-the-counter.  
PAPERBOARD PLANS BID TO ACQUIRE BELKIN. <Paperboard Industries Corp> said it planned to make an unconditional 21 dlr a share cash offer for <Belkin Inc>'s 7.6 mln common and 2.3 mln non-voting shares. Paperboard said Balaclava Enterprises Ltd, owned by Morris Belkin, agreed to tender 98.2 pct of Belkin's common shares. It added that in case of a competing offer of more than 23 dlrs, it had the right to match it. If it did not match the offer, Balaclava could accept the competing bid. The two companies manufacture linerboard and boxboard from recycled fibre. Their combined revenues are about 500 mln dlrs.  
PAPER SAYS U.S. MAY SEEK TO CURB FOREIGN TAKEOVERS. The Reagan administration will consider curbing foreign takeovers of security-sensitive industries such as semiconductors and computers, the New York Times said, quoting an unnamed senior administration official. "I think there's a strong sentiment here that some industries are not totally up for grabs," the paper quoted the official as saying. "Two of the most visible (industries) are semiconductor and computer companies," said the official, who the newspaper said was a central figure in the opposition to Japan's Fujitsu Ltd <ITSU.T> takeover bid for <Fairchild Semiconductor Corp>. The Fairchild-Fujitsu deal was abandoned on Monday, and industry analysts said the move was a victory for the Reagan administration in its drive to beat back Japanese competition in the important computer chip manufacturing industry. Officials told Reuters last week that Commerce Secretary Malcolm Baldrige and Defence Secretary Caspar Weinberger fought the planned sale of Fairchild by French-controlled Schlumberger Ltd <SLB> to Japan's largest computer maker because it could have left the U.S. Military dependent on foreign sources for vital technology. The New York Times quoted Baldrige as saying the time had come to limit takeovers in security-sensitive areas. "Everybody wants an open investment policy, but there have to be some exceptions for the national interest," Baldrige was quoted as saying. The newspaper said Baldrige and Weinberger are expected to bring the takeover issue before a top-level interagency policymaking group, such as Treasury Secretary James Baker's Economic Policy Council or the president's National Security Council.  
PHILIPPINES SOCIAL SECURITY TO BUY SAN MIGUEL SHRS. The Philippines' Social Security System (SSS) is planning to buy eight mln shares in diversified brewer <San Miguel Corp> (SMC), SMC chief financial officer Ramon del Rosario said. He told reporters the government organisation had expressed interest in one seat on SMC's 15-man board and was preparing to invest 800 mln pesos, assuming a purchase price of 100 pesos a share. The shares involved in the proposal were part of the block of 38 mln shares owned by the United Coconut Planters Bank (UCPB) and sequestered by the government. The block is split between class A and class B stock. SMC also proposed to sell a further five mln shares to A.N. Soriano Corp, the family company of San Miguel president Andres Soriano, del Rosario said. The shares are worth some 500 mln pesos at recent prices. Del Rosario said the 14 mln B shares in the block which are open to foreign ownership would probably be sold to unidentified foreign purchasers. He said SMC and UCPB would meet later this week to try to resolve disputes over the pricing of the shares. President Corazon Aquino earlier this month established an arbitration panel to settle a row over the disposal of the shares. Their initial sale to Soriano through SMC Hong Kong unit Neptunia Corp was blocked by the Presidential Commission on Good Government. The commission sequestered the stock on suspicion that the real owner of the block was Eduardo Cojuanco, the former chairman of San Miguel and the UCPB and a close associate of deposed former president Ferdinand Marcos.  
ECONOMIC SPOTLIGHT - JAPAN BUYING OVERSEAS FIRMS. More U.S. And European firms will be falling prey to Japanese corporations bulging with cash and eager to extend their reach further overseas, according to merger and acquisitions specialists polled by Reuters. Already, rich Japanese companies have pounced on U.S. Banks, steel and other businesses. In the latest attempt, Fujitsu Ltd <ITSU.T> -- Japan's biggest computer maker -- unsuccessfully bid for <Fairchild Semiconductor Corp>, a U.S. Microchip maker which supplies components for supercomputers. Nomura Securities Co Ltd <NMSC.T> and Daiwa Securities Co Ltd <DSEC.T>, Japan's two largest brokerage firms, are seeking a niche in the U.S. And European securities markets, while the country's huge banks are looking for strongholds in overseas banking, the takeover specialists said. Major trading houses, which see their profits evaporating in the heat of increased competition in merchandise trade, all have foreign businesses on their shopping lists. Among manufacturers, car parts makers are under the most pressure to buy up overseas companies and follow the big auto makers they subcontract for as these move offshore. "The timing is favourable for Japanese parties to buy up potential overseas businesses, especially in the U.S. -- Japan's largest market and where political risks are minimal," a takeover specialist at one trading company said. Japanese companies have become among the world's richest after a series of boom export years and as the yen has climbed against the dollar by some 40 pct in the past 18 months. But the yen's strength, which has also raised the costs of Japan's exports and allowed its Asian neighbours to move into its traditional markets, has frozen Japanese corporate growth, the specialists said. Looming trade friction is also threatening to erect more barriers against Japanese exports. Japanese firms see overseas acquisitions as a way to avoid the gloomy growth outlook and put their excess cash to work. Domestic interest rates, now at record lows, offer little investment opportunity. "Japanese interest in acquisitions has been continuous, but the recent economic factors have become a driving force," said a banking industry source. So far, though, the Japanese are being cautious. While mergers and acquisitions among U.S. Firms number in the thousands, Japanese buyouts of overseas companies have totalled just a few dozen, one merchant banker said. Another merchant banker said that a flurry of Japanese acquisition activity was originally expected five years from now, but that time span appeared now to be too long. Japanese firms are becoming more aggressive now, he said. A turning point seemed to be Dainippon Ink and Chemicals Inc's <DIAC.T> takeover bid for <Sun Chemical Corp> of the U.S. Last year, which some analysts saw as somewhat hostile, he added. Dainippon Ink bought Sun Chemical's graphic arts group for 550 mln dlrs late last year, after an earlier unsolicited bid for the whole company. Sun Chemical refused to sell its entire business after learning that Dainippon planned to liquidate all but its graphic arts-related businesses. Hostile takeovers are considered unethical and frowned upon by the Japanese, the trading company official says. "Japanese people don't like fighting. They prefer peaceful amicable deals." But now after some experience overseas, Japanese companies are acquainted with local practice, he adds. "This is a healthy progression." However, the experts do not expect the Japanese to run the board meetings of any giant U.S. Or European concerns. "Japanese companies are not fully confident in managing a large U.S. Or European corporation," one banker said. "They will expand their operations only gradually, a typical way for Japanese business." A foreign merchant banker also noted, "There are not many mega-deals left to do in the United States. A lot of the big deals there have already been done." But medium-size and small concerns are potential targets of Japanese companies, the specialists said. Japanese will be aiming for new businesses in high-technology areas. "Japanese companies had used technology and quality to get where they are and are unlikely to deviate from that trend," one takeover specialist said. Many are watching the results of the first acquisitions. If these succeed, activity could build, the specialists said. But few such specialists are going to sit back and wait until the action begins. Already, they said, Japanese trading houses, long-term credit and commercial banks, brokerages and foreign merchant banks have set up research sections to act as go-betweens in deals or find good buys for themselves.  
SINGAPORE GOVERNMENT TAKES OVER GOODWOOD SHARES. The Singapore government has taken over 82 mln dlrs worth of Goodwood Park Hotel Ltd shares and loan stock certificates belonging to the company's chairman, Khoo Teck Puat, banking sources said. Khoo is a major shareholder of the <National Bank of Brunei Bhd> (NBB), which closed in November after the Brunei authorities alleged 90 pct of its loans of 1.3 billion Brunei dlrs had been extended to Khoo-related firms without documentation or guarantee. The Goodwood securities are now held by the Commercial Affairs Investigation Department, the banking sources said. The department declined to comment. The government move is aimed at protecting Goodwood's minority shareholders and securing Goodwood deposits at the NBB, the banking sources said. Goodwood had a total of 87.3 mln dlrs in fixed deposits, bank balances and accrued interest due from NBB as of last November, according to Goodwood's annual report.  
TOYOTA MOTORS SIGNS PURCHASE AGREEMENT WITH PNB. The state-owned Philippine National Bank (PNB) will fund Toyota Motor Corp's <TOYO.T> planned purchase of its bankrupt former local partner's manufacturing facilities for at least 193 mln pesos, a bank official told reporters. Toyota has informed the Philippine government it plans to produce cars again here in joint venture with a local partner. It proposes to invest about 400 mln pesos in the manufacture of car spare parts and other items, and generate about 100 mln pesos in export earnings over five years. The banker said today a letter of intent was signed three weeks ago but the sale requires approval from government agencies charged with selling private sector assets taken over by state-owned banks. Official sources said Toyota's application was likely to be approved. Toyota severed ties with its Philippine partner of 20 years, <Delta Motor Corp>, in 1984 because the local company was suffering financial difficulties. PNB later foreclosed on Delta's assets.  
VEBA SHARE PLACEMENT STILL EXPECTED THIS MONTH. The sale of the government's 25.55 pct stake in VEBA AG <VEBG.F> is still expected this month, banking sources closely linked with the transaction said. A spokesman for the Finance Ministry said no exact date had yet been set for the privatisation, which the government has tabled for the second half of March. However, he added a scandal at Volkswagen AG <VOWG.F>, VW, over currency losses "has nothing to do" with the timing of the VEBA sale. Finance Minister Gerhard Stoltenberg has said the sale of the Federal government's stake in VW, originally scheduled for later this year, may be delayed because of the currency affair. A banker involved in the VEBA placement said "Nothing has changed in the planning. I still presume that it will take place in the second half of March." This banker said there would be no reason to postpone the issue of the 10 mln VEBA shares for a few days. He added that the consortium which is arranging the deal had completed its preparatory work, although the price had not been decided. The VEBA share has been weaker ahead of the placement but West German stocks have been generally bearish and news of the VW scandal last week put further pressure on the market.  
KLM DENIES PRESS REPORT OF AIR ATLANTA TAKEOVER. NV KLM Royal Dutch Airlines <KLM.AS> is "absolutely not" negotiating a takeover of U.S. Regional carrier Air Atlanta, a KLM spokeswoman said in a comment on an article in the leading Dutch evening paper NRC Handelsblad. "U.S. Law requires that at least 75 pct of shares in a U.S. Airline be owned by American firms or persons," the spokeswoman added. The newspaper said that Air Atlanta, which flies to 11 U.S. Cities, has a fleet of five Boeing jets with passenger capacity of 110 and employs 400 people, is making losses. She said KLM had started talks with Vendex International NV <VENN.AS> on their jointly owned courier service XP Express Parcel Systems, but declined to confirm an NRC Handelsblad report saying it wanted to buy the Vendex stake in XP. KLM said last week it is negotiating a minority stake in British courier service <IML Air Services Group Ltd>, a subsidiary of British and Commonwealth Shipping Plc <BCOM.L>, to strengthen its position in the fast-growing worldwide door-to-door delivery market. The KLM spokeswoman said she expected further announcements about the talks with Vendex to be made early next week.  
DIXONS HAS 56 PCT OF CYCLOPS CORP. Dixons Group Plc <DXNS.L> said its tender offer for all of the common shares in <Cyclops Corp> of the U.S. Expired at midnight yesterday and that it had accepted approximately 2.3 mln shares in the company at 90.25 dlrs each. This represents just over 54 pct of the outstanding shares on a fully diluted basis. But including shares already owned, Dixons now holds a total of 56 pct of the fully diluted outstanding shares. The company said it is now entitled to subscribe for all the authorised but unissued and unreserved shares of common stock of Cyclops, which total some 5.4 mln shares, at 90.25 dlrs each. Dixons said it has waived its condition that 80 pct of the fully diluted outstanding shares be validly tendered and not withdrawn. Dixons launched the agreed 384 mln dlr offer on February 17 this year in the wake of its unsuccessful battle to take over the U.K. Retail store chain Woolworth Holdings Plc <WLUK.L>. Dixons shares were last quoted at 390p, up on last night's close of 380p. On Friday, <CYACQ Corp>, an investor group formed by Audio/Video Affiliates Inc <AVA> and Citicorp <CCI>, said it would increase the price it was offering for all Cyclops shares to 92.50 dlrs from 80.00 dlrs each if Cyclops would provide it with confidential information given to Dixons and if it were satisfied that any rights Dixon might have to recover fees or expenses from Dixons or to buy Cyclops stock would be rescinded or proved invalid. Audio/Video's offer is scheduled to expire March 20.  
AFG <AFG>, WAGNER/BROWN BID FOR GENCORP <GY>. <General Partners>, controlled by privately-held Wagner and Brown and by AFG Industries Inc, said it has started a tender offer for all common shares of GenCorp Inc and associated defensive preferred share purchase rights for 100 dlrs a share. GenCorp stock closed yesterday in composite tape trading at 90.50 dlrs a share, up two dlrs on the day. In a newspaper advertisement, General Partners said the offer and withdrawal rights expire April 14 unless extended. General Partners said the offer is conditioned on receipt of sufficient financing to buy all shares on a fully diluted basis and receipt of enough shares to give General Partners at least 51 pct voting power, again fully diluted. It said the offer is also conditioned on GenCorp redeeming the defensive rights or General Partners being satisfied that the rights have been invalidated and General Partners obtaining from the Federal Communications Commission a special temporary authorization allowing completion of the acquisition of GenCorp shares. General Partners said it would set up voting trust arrangements pending review of its long-form application for FCC approval of its acquisition of control of GenCorp's broadcasting subsidiary. The partnership said the offer is further conditioned on GenCorp management withdrawing its proposals to amend the company's articles of incorporation and code of regulations to provide for an increase in authorized common shares, a classified board of directors and the elimination of cumulative voting.  The latter two changes would make it harder for minority shareholders to elect directors. General Partners said it is asking GenCorp for its shareholder lists for help in disseminating the offer. GenCorp has about 22.3 mln shares outstanding, making the value of the offer about 2.23 billion dlrs. Last fall, AFG and Wagner and Brown offered to acquire <Lear Siegler Inc> for about 1.44 billion dlrs but withdrew the offer when higher bids emerged and due to complications of the Tax Reform Act of 1986.  Lear Siegler eventually went private for 1.66 billion dlrs. GenCorp is involved in tire and plasticmaking and aerospace as well as broadcasting.  The company faces challenges to its two television and 12 radio station licenses, partly becuase it failed to inform the FCC about allegedly improper foreign payments and political contributions. GenCorp has agreed to sell its New York-area television station WOR to MCA Inc <MCA> for 387 mln dlrs and its Los Angeles station KHJ to Walt Disney Co <DIS> for 217 mln dlrs. An investor group challenging the Los Angeles license would also receive 103 mln dlrs from Disney. For the year ended November 30, GenCorp earned 130 mln dlrs on sales of 3.10 billion dlrs. A GenCorp spokesman said the offer came as a surprise and the company was not yet in a position to comment on the bid.  
FAR WEST FINANCIAL <FWFP> TO BUY PROGRESSIVE. Far West Financial Corp said its Far West Savings and Loan Association unit has reached an agreement in principle to acquire all the outstanding stock of Progressive Savings and Loan Association <PRSL>. Far West said it does not expect the cost of the transaction to exceed 15 mln dlrs. Progressive Savings has ten branches in Southern California and about 500 mln dlrs in assets.  
JAPAN TELECOM MERGER COULD INVOLVE U.K.,U.S. FIRMS. Cable and Wireless PLC <CAWL.L> and the Pacific Telesis group <PAC.N> may take part in a proposed merger of two rival firms seeking to enter Japan's international telecommunications market, a senior industry official said. Fumio Watanabe, head of a telecommunications committee with the Federation of Economic Organisations (Keidanren), told a news conference Japanese shareholders in the two consortiums agreed that the U.S. And British companies will be invited to participate in the new merged firm. The planned linkup will satisfy Tokyo's request that only one private company should enter the market. The two consortiums, <International Digital Communications Planning Inc> (IDC) and <International Telecom Japan> (ITJ), were set up in 1986 to compete with monopoly <Kokusai Denshin Denwa Co> (KDD) after the market was deregulated in 1985. Watanabe said the Post and Telecommunications Ministry wanted only one competitor for the time being because of the size of the Japanese telcommunications market and that foreign investors will only be allowed to hold a minority stake. He estimated the two foreign firms' share in the merged consortium at less than three pct and added that even the largest shareholders could own only some five pct . Cable and Wireless and Japanese trading house <C. Itoh and Co.> each have a 20 pct stake in the IDC consortium while Pacific Telesis and Merrill Lynch and Co. Inc. <MER.N> jointly hold 13 pct . ITJ is headed by a rival group of trading houses. Several firms including Toyota Motor Corp. <TOYO.T>  belong to both. Watanabe said progress was being made towards a merger agreement and added that Japanese industry agreed with the government on having only one private consortium as two companies might invest "excessive" amounts. He said talks with Cable & Wireless will continue this week.  
FERRUZZI NEGOTIATING EUROPEAN ACQUISITION. Italy's <Gruppo Ferruzzi> is in the advanced stages of negotiations that could result in an acquisition worth "some hundreds of billions of lire" in the European agro-industrial sector, a company spokesman told Reuters. The spokesman declined to identify the other party or parties involved in talks, or whether a complete takeover was under discussion, but said an Italian newspaper report that Ferruzzi was studying the possibility of advancing an offer for 13 European cereal processing plants owned by the U.S. Group CPC International Inc <CPC.N> was incorrect. The spokesman said that possibility had been evaluated by Ferruzzi but that the company's attention at the moment was "decisively in another direction." The spokesman, responding to a report in the Italian economic daily Il Sole-24 Ore that Ferruzzi was considering a possible bid for the CPC plants, told Reuters his company hoped to conclude the talks currently underway in a couple of months. The spokesman said that since the U.K. Government last month blocked Ferruzzi's bid to acquire <British Sugar Plc>, the company had been looking at other investment opportunities.  
INTERCARE <CARE> SAYS ACQUISITION TERMINATED. InterCare Inc said it has agreed to terminate the proposed acquisition of <Universal Care> because <First Jersey Securities> has withdrawn as underwriter for a proposed offering of InterCare securities. The company said the offering was to have raised 7,500,000 dlrs for working capital through the sale of equity and debt and would have also financed the 1,897,000 dlr cash portion of the Universal Care purchase price.  In addition, 1,700,000 dlrs would have been used to repay debt. InterCare said to date it has incurred about 500,000 dlrs in expenses in connection with the proposed offering. The company said to improve its working capital position, it plans to reduce operating expenses by decreasing hours of operation and its workforce and selling some assets. As of October 31, the copmpany said it had a working capital deficit of 2,301,000 dlrs, on a pro forma basis to include recently acquired U.S. Medical Enterprises Inc.  
HARCOURT BRACE SETS MARCH 30 DEADLINE IN HARPER AND ROW BID.  HARCOURT BRACE SETS MARCH 30 DEADLINE IN HARPER AND ROW BID  
MOBEX SAYS ABOUT 87 PCT OF GRANT <GTX> TENDERED. Mobex Corp said 2,088,461 Grant Industries Inc common shares, about 87 pct of the 2.4 mln outstanding, have been tendered in response to Mobex's offer. The company said its offer of 7.75 dlrs a share for the stock has been extended to 2000 EST March 23 from 2400 March 17.  
HARCOURT BRACE <HBJ> SETS HARPER <HPR> DEADLINE. Harcourt Brace Jovanovich Inc said it has told Harper and Row Publishers Inc representatives that it intends to withdraw its proposal to acquire Harper and Row for 50 dlrs per share in cash if the parties have not made satisfactory progress in discussions by the close of business on March 30. Harcourt Brace said, "We do not wish to put undue pressure on Harper and Row, but we also, in fairness to our own shareholders, cannot allow an offer of such magnitude to lie on the table too long." Harcourt said three of its senior officers and its investment bankers met yesterday with investment bankers for Harper and Row to discuss the Harcourt Brace offer. Harcourt Brace said it will only pursue the acquisition if a mutually-satisfactory merger agreement can be negotiated. Last week, a group formed by Theodore Cross offered to acquire Harper and Row for 34 dlrs per share.  The group held about six pct of Harper and Row. In addition, New World Pictures Ltd <NWP>, holder of 4.5 pct of Harper and Row, had offered to discuss a merger with Harper and Row.  
DIXONS GROUP SAID IT ACCEPTS 54 PCT OF CYCLOPS SHARES IN TENDER.  DIXONS GROUP SAID IT ACCEPTS 54 PCT OF CYCLOPS SHARES IN TENDER  
GROUP TENDERING FOR GENCORP SAYS IT HOLDS ABOUT 9.8 PCT OF GENCORP COMMON.  GROUP TENDERING FOR GENCORP SAYS IT HOLDS ABOUT 9.8 PCT OF GENCORP COMMON  
GENCORP <GY> GROUP HOLDS 9.8 PCT STAKE. (General Partners), a Texas general partnership equally owned by affiliates of Wagner and Brown and AFG Industries Inc <AFG>, said it currently holds 2,180,608 common shares, or about 9.8 pct, of Gencorp Inc's <GY> outstanding common stock. General Partners said it began a 100 dlrs a share cash tender offer for all of Gencorp, an Akron, Ohio-based concern, that is worth nearly 2.3 billion dlrs. Gencorp, which has interests in tire- and plastic-making, aerospace and broadcasting, has about 22.3 mln shares outstanding. The General Partners offer is subject to receipt of financing, a majority of Gencorp shares and other conditions. In a letter to Gencorp chairman and chief executive A. William Reynolds describing the offer, General Partners said it was willing to negotiate terms of the offer and was prepared to meet as soon as possible. In a statement, General Partners said it has contributed 250 mln dlrs in equity financing and also has commitments for a one billion dlr credit line from Wells Fargo and Co <WFC> and a 1.25 billion loan from Shearson Lehman Brothers Holdings Inc, a unit of American Express Co <AXP>. A Gencorp spokesman said the company's management was meeting but that its board was not scheduled to meet today. He said he was not sure the company had formally received notice of the offer but was aware of it through press accounts. He declined to say what Gencorp's next move might be or whether it would issue a statement later today. In the letter, General Partners said it plans to maintain Gencorp's corporate headquarters in Akron, and retain the company's plastics and industrial products businesses and its tires and related products segment. The letter did not mention Gencorp's RKO General broadcasting subsidiary, which has been involved in disputes over license renewals at several of its television stations. Gencorp has agreed to sell two of its independent stations, WOR in the New York area and KHJ in Los Angeles. General Partners officials were not immediately available. Gencorp shares were delayed at the opening on the New York Stock Exchange because of an imbalance of orders, and the NYSE said the shares were indicated to open at 103 to 115. The shares closed up two yesterday at 90-1/2, a new 52-week high. The financing for the offer includes the 250 mln dlrs in equity from General Partners, the 1.25 billion dlr loan from Shearson Lehman Brothers, a senior subordinated bridge loan for which a binding agreement can be delivered within 24 hours after a request from the partnership, and the one billion dlr credit line from Wells Fargo. Wells Fargo has agreed to lend up to 250 mln dlrs of the line itself and form a syndicate of banks to provide the rest, the partnership said. Shearson Lehman Brothers Inc will act as dealer manager in the tender offer, it said. In the letter, the partnership said it was confident it could obtain the financing and close the transaction promptly. Last fall AFG and privately held Wagner and Brown offered to acquired (Lear Siegler Inc) for about 1.44 billion dlrs but withdrew the offer when higher bids emerged. Lear Siegler eventually went private for about 1.66 billion dlrs.  
SEC MOVES TO DISCIPLINE ALLEGHENY INT'L <AG>. The Securities and Exchange Commission (SEC) staff is seeking authority to take enforcement action against Allegheny International Inc, the Pittsburgh-based industrial and consumer products firm said. Allegheny made the disclosure in documents filed with the SEC in connection with its recent agreement to be taken private through a leveraged buyout led by First Boston Inc. "Following announcement of the merger agreement, the company was informed by the Enforcement Division of the (SEC) that it intends to seek authority from the commission to institute a proceeding against the company," Allegheny said. "The company is cooperating in the commission's investigation which is continuing and now includes the taking of testimony of employes and others," Allegheny said. In the ongoing probe, Allegheny said, the staff has asked for information about company executive compensation and benefit plans, certain company-owned real estate, travel and entertainment spending and the use of corporate aircraft. It also has asked for information on acquisitions and divestitures, the company's accounting system "and other internal controls," Allegheny said. The probe began in February 1986, Allegheny said. The SEC, as a matter of policy, routinely declines comment on its enforcement actions. The SEC investigation began just months before Allegheny became the target of a series of shareholder lawsuits claiming that the company had violated the federal securities laws by failing to disclose material matters in recent annual proxy statements. The suits, later consolidated into a single class-action complaint before a Pennsylvania federal court, allege securities law violations involving numerous current and former Allegheny officers and directors. Earlier this month, lawyers for the shareholders asked the court to expand the charges to include an allegation that, in the buyout, Allegheny had attempted to illegally freeze out its public shareholders at an unfair price. Allegheny said it intends to vigorously defend itself against all charges. The charges made in the shareholder suits are widely believed to have led to last summer's resignation of Chairman and Chief Executive Officer Robert Buckley. In the buyout, a group led by First Boston tendered March 13 for all outstanding Allegheny shares at 24.60 dlrs a share.  
CANAMAX TO ACQUIRE KREZMAR GOLD PROPERTY STAKE. <Canamax Resources Inc> said it agreed to acquire the 50 pct interest it does not already own in the Krezmar gold property, near Wawa, Ontario, by paying nine mln dlrs to <Algoma Steel Corp Ltd> and granting Algoma a four pct net smelter return royalty, which is payable after payback. The property's drill indicated reserves to a depth of 1,200 feet are estimated at over one mln tons averaging 0.25 ounces of gold a ton, Canamax said.  
ANACOMP <AAC> ACQUIRES DATAGRAPHIX. Anacomp Inc said it acquired the common stock of DatagraphiX Inc from General Dynamics Corp <GD> for about 128 mln dlrs. It said the purchase will be financed with a combination of a new bank credit agreement and through private placement of senior subordinated notes and convertible preferred stock. DatagraphiX, which had 1986 sales of 240.7 mln dlrs, manufactures a line of computer output to microfilm hardware and supplie. Anacomp's sales for the year ended Sept 30, 1986 were 108.8 mln dlrs.  
GELCO <GEL> TO SELL CANADIAN COURIER UNIT. Gelco Corp said it signed a letter of intent to sell its Canadian courier unit, Gelco Express Ltd, to Air Canada for about 54 mln dlrs (U.S.). It said consummation of the transaction depends on execution of a definitive agreement, which is expected in May. As part of its restructuring plan, Gelco had announced that it would sell four business units. Gelco Express Ltd was one of the companies scheduled for divestiture.  
SYNTHETECH <NZYM> ENDS SOUTHWEST PHOTO TALKS. Synthetech Inc said it discontinued negotiations on acquiring Southwest Photo chem Inc of Pomona, Calif. The company cited "irreconcilable differences" in the financial structure of the deal. It said Southwest Photo proposed a significant change in terms outlined in the letter of intent signed last month.  
RANCO <RNI> HOLDERS APPROVE MERGER. Ranco Inc said shareholders at a special meeting approved a merger into <Siebe PLC> for 40 dlrs per share.  
AIR CANADA TO COMMENT ON GELCO<GEC> UNIT REPORT. State-owned Air Canada said it will make a statement at 1100 EST concerning a published report that the airline has agreed to acquire Gelco Corp's Canadian unit, Gelco Express Ltd, an Air Canada spokesman said. The spokesman declined to comment on the Toronto Globe and Mail report when queried. The sale of Gelco Express, Canada's second largest courier service, is part of the parent company's strategy to repay 350 mln U.S. dlrs of debt by the end of 1987, the report said, quoting a Gelco spokesman. The report did not disclose a price for the sale of Gelco's Canadian unit.  
ICELAND TO PRIVATISE STATE BANK UTVEGSBANKI. The Icelandic government said it will privatise the state-owned bank Utvegsbanki, the country's second largest. Parliament also granted an 800 mln crown cash infusion to ease cash flow problems that arose when the bank lost 600 mln crowns in a shipping firm bankruptcy two years ago. Utvegsbanki director Halldor Gudbjarnarson told Reuters the decision to privatise the bank was a relief and that foreign banks had already expressed interest in taking a share. A quarter of the one billion crown total share capital will be available to foreign investors, government officials said.  
EXOVIR <XOVR> SELLS STOCK FOR 2.8 MLN DLRS. Exovir Inc said it sold to an investor group led by Mark Hammer 200,000 shares of company common stock and warrants to purchase an additional 200,000 shares. Exovir said the transaction increases the group's stake from 12.9 pct to 18.5 pct. The net proceeds to the company total 2.8 mln dlrs, the company said. The warrants are exerciseable over the next three years at 19.50 dlrs per share of common stock, according to Exovir.  
PEAT MARWICK AND NOLAN NORTON TO MERGE. <Peat Marwick>, an accounting and management consulting firm, and <Nolan, Norton and Co>, an information and technology planning concern, said they have merged. The companies said with the merger Nolan now will be known as Nolan, Norton and Co-partners, the information technology arm of Peat Marwick. Also as part of the merger, Nolan's 21 principals have become Peat Marwick partners, the companies said.  
TRUS JOIST <TJCO> TO ACQUIRE CANADIAN FIRM. Trus Joist Corp said it agreed to purchase Dashwood Industries Ltd, a Canadian wood window and patio door manufacturer, for an undisclosed amount of cash. Trus Joist said it expects to close the transaction before June 30.  
CHEMCLEAR INC <CMCL> TERMINATES MERGER TALKS. ChemClear Inc said it terminated merger talks with Environmental Systems Co <ESC>. ChemClear said it was unable to reach agreement with Environmental, which was considering buying ChemClear. ChemClear said it is considering other options, including other business combinations and financing through commercial lending and other financial institutions for internal expansion.  
CAMCO SIGNS LETTER OF INTENT FOR REED TOOL. Pearson Plc <PSON.L> said <Camco Inc>, its 65.4 pct owned U.S. Oil and oil services subsidiary, signed a letter of intent covering Camco's purchase from Baker International Corp <BKO.N> of substantially all the business of <Reed Tool Co>. Reed, a leading manufacturer of drilling bits, had sales for 1986 of around 76 mln dlrs. The transaction is subject to negotiation of a definitive agreement approved by the Baker and Camco boards and by the U.S. Department of Justice, with which talks are already taking place concerning the combination of Baker and Hughes Tool. Baker International has proposed a merger with Hughes Tool which could create a 1.2 billion dlr oilfield services company. Pearson shares were down 4p to 567 after the announcement.  
AIR CANADA TO ACQUIRE CALGARY COURIER COMPANY. Air Canada, the state-owned airline, said it signed a letter of intent to acquire 65 pct of EMS Corp, a Calgary-based messenger service which operates in Western Canada and the U.S.. Gelco Corp (GEL) earlier said Air Canada agreed to buy its Canadian Gelco Express Ltd unit for 54 mln U.S. dlrs. Air Canada said the acquisitions will complement its main cargo business. It said it expects the courier market to grow by about 25 to 30 pct a year.  
FINANCIAL SECURITY <FSSLA> TO SELL BRANCH. Financial Security Savings and Loan Association said it has agreed to sell its Sunrise, Fla., branch to Fortune Financial Group Inc <FORF> of Clearwater, Fla., for a "substantial profit," subject to regulatory approval. Terms were not disclosed.  
GENCORP <GY> NAMES FINANCIAL ADVISERS. GenCorp Inc plans to use First Boston Corp and Kidder, Peabody and Co as financial advisers on a tender offer for the company by General Partners, a GenCorp spokesman said. The spokesman, in response to questions from Reuters, said the company does not yet have a comment on the 100 dlr per share tender offer, launched by the partners today. First Boston and Kidder have been advisers to GenCorp in the past, he said. General Partners is comprised of investors Wagner and Brown and AFG Industries Inc, a glass manufacturer.  
BEVIS INDUSTRIES SEEKS BUYER FOR COMPANY. <Bevis Industries Inc> said it retained Tucker Anthony and R.L. Day Inc to seek purchasers of the company or its units. It issued no further details. The company, which makes stainless steel tubing for the chemical, petrochemical, and oil industries, earned 1,045,000 dlrs or 51 cts a share in the nine months ending September 30, 1986. It had sales of 17.1 mln dlrs in the period.  
U.S. HOUSE PLAN SEEKS TO BAR FOREIGN TAKEOVERS. A House subcommittee voted to give President Reagan authority to block foreign takeovers of U.S. companies similar to the takeover of Schlumberger Ltd's <SLB> Fairchild Semiconductor Corp by Fujitsu Ltd which was withdrawn. The House Energy and Commerce Subcommittee on Commerce approved as an amendment to the overall House trade bill a provision giving Reagan the power to block sales to foreign companies if the sale was not in the national or economic interest. The takeover provision was sent to the full Energy and Commerce Committee for consideration as part of the overall trade bill which is being written by several House committees. The subcommittee's bill would bar imports of digital audio recording equipment that is not made with anti-copying chips. This provision is designed to protect U.S. companies from the unauthorized use of U.S. designs in foreign products. The bill calls for an investigation of whether U.S. engineering and construction firms are given adequate opportunity to bid on Japan's civil works procurement practices including the construction of the Kansai airport. The Energy and Commerce subcommitte rejected a plan offered by Rep. William Dannemeyer, a California Republican, to require the U.S. to pay investors one pct for the right to hold their gold investments in government storage. His amendment called for the government to sell gold coins and gold-backed bonds with maturities of 30 to 50 years to investors to reduce the federal debt.  
NORSTAR BANCORP, FLEET FINANCIAL GROUP AGREE TO MERGE.  NORSTAR BANCORP, FLEET FINANCIAL GROUP AGREE TO MERGE  
FIRST UNION <FUNC> ACQUISITION APPROVED. First Union Corp said the buyout of Commerce National Bank by its First Union National Bank of Florida unit was approved by Commerce shareholders. According to the terms of the deal, First Union will pay 8.5 mln dlrs for the outstanding shares of Commerce National, a bank with 43.2 mln dlrs in assets.  
NORSTAR <NOR>, FLEET <FLT> TO MERGE. Norstar Bancorp said that its board and the board of Fleet Financial Group have approved a definitive agreement to merge. A Norstar spokesman said that a press release containing further details on the merger would be issued shortly.  
TALKING POINT/GENCORP INC <GY>. The surprise 2.2 billion-dlr tender offer for Ohio-based conglomerate GenCorp Inc will not be enough to buy the company, analysts said. Analysts estimated the 100 dlr-per-share offer from General Partners is 10 to 20 dlrs per share below the breakup value of GenCorp. However, market sources and analysts said  uncertainty surrounds any transaction because of the legal challenges to Gencorp broadcasting licenses. Gencorp's stock rose 15-3/4 to 106-1/4 in heavy trading. "The expectation is either there will be someone else or the bidder will sweeten the offer hoping to get management's cooperation," said Larry Baker, an analyst with E.F. Hutton group. Analysts said there is concern about challenges to Gencorp's broadcast licenses for two television and 12 radio stations. Some of the disputes, dating back about 20 years, were brought by groups that alleged improper foreign payments and political contributions. "I think it kind of muddies an already muddy situation," said Baker of the offer. Some arbitragers said they were concerned the ongoing issue might be a stumbling block or result in a long period of time for any transaction. A source close to General Partners, however, said General Partners would apply to the Federal Communications Commission for special temporary authority to hold the broadcast stations. The source said if approved, the authority would allow a transaction to be carried out. If it received the "short-form" approval, General Partners would set up a trust which would hold the broadcasting properties until the licensing situation is resolved. General Partners is equally owned by investors Wagner and Brown and glass-maker AFG Industries Inc. Some market sources speculated an outside buyer, such as General Partners, might even be be a catalyst to resolution of the challenges since it would carry out GenCorp's plan to sell the stations. GenCorp earlier this month reached an agreement with Walt Disney Co to sell its Los Angeles television station, WHJ-TV. Disney would pay 217 mln dlrs to GenCorp and 103 mln dlrs to a group that challenged the station's license. GenCorp also has a pending agreement to sell WOR-TV in Secaucus, N.J. to MCA Inc for 387 mln dlrs. General Partners said it intends to keep the company's plastics and industrial products businesses and its tires and related products segment. Charles Rose, an analyst with Oppenheimer and Co, said that, on a breakup valuation, the company might be worth as much as 125 dlrs per share. Rose estimated the aerospace business could bring 30 to 40 dlrs per share or one billion dlrs, as would DiversiTech, the plastics unit. Broadcasting, including assets pending sale, might be 30 to 40 dlrs per share, he said. The company, formerly known as General Tire and Rubber Co, also has a tire business Rose estimated would be worth five to 10 dlrs per share. He estimated the bottling business might also be worth several dollars per share, he said. Analysts said GenCorp chairman A. William Reynolds, who became chairman last year, has been emphasizing the company's Aerojet General and DiversiTech General businesses. GenCorp, founded in 1915, became an unfocused conglomerate over the years and analysts believe reynolds has helped it to improve. "The management's doing a very fine job in trying to deal with the non-strategic assets of the company," Rose said. Analysts expect GenCorp to resist the tender offer, but they declined to predict what steps the company might take. They said it would be possible the company might consider a leveraged buyout or restructuring to fend off the offer. General Partners holds 9.8 pct of GenCorp stock, and there was some concern about "greenmail." Greenmail is the payment at a premium for an unwanted shareholders' stock. "I would doubt they would greenmail them, but nothing surprises me anymore," said Rose. GenCorp has not commented on the offer. It has retained First Boston Corp and Kidder, Peabody and Co as advisers.  
AMERICAN EXPRESS UP ON RUMORS 10 PCT OF SHEARSON TO BE SOLD TO JAPANESE FIRM, TRADERS SAY.  AMERICAN EXPRESS UP ON RUMORS 10 PCT OF SHEARSON TO BE SOLD TO JAPANESE FIRM, TRADERS SAY  
NORSTAR SHAREHOLDERS TO GET 1.2 FLEET FINANCIAL SHRS PER NORSTAR SHARE IN MERGER.  NORSTAR SHAREHOLDERS TO GET 1.2 FLEET FINANCIAL SHRS PER NORSTAR SHARE IN MERGER  
BUTLER <BTLR> COMPLETES SALE OF LIVESTOCK UNIT. Butler Manufacturing Co said it completed sale of its Livestock Systems division and part of its Control division in separate transactions to two unrelated parties. Butler's livestock systems division was sold to an investor group including the president of the operations and certain Control division assets were sold to Minneapolis-based Enercon Data Corp. Terms of the transactions were not disclosed.  
NORSTAR <NOR>, FLEET <FLT> OUTLINE MERGER. Fleet Financial Group said that its board and the board of Norstar Bancorp have agreed to merge the two bank holding companies in a transaction which would create a 23 billion dlr asset bank holding company. Under terms of the transaction, each Norstar shareholder will receive 1.2 shares of Fleet common stock based on the number of Fleet shares after giving effect to a previously announced April one Fleet stock split. The two-for-one stock split will increase Fleet's currently 25.7 mln outstanding shares to 51.5 shares. There are about 34.9 mln Norstar shares outstanding. Fleet said the deal is expected to be completed by July one 1988, the date on which the nationalization of Rhode Island's interstate banking law takes effect. For the full year ended december 31, Fleet, a Rhode Island based bank holding company, reported net income of 136.7 mln dlrs and assets of 11.7 billion dlrs. Norstar, an Albany N.y. holding company, reported net income of 104.8 mln dlrs and assets of 11.1 billion dlrs. Fleet comptroller Irv Goss said it is estimated that the transaction will result in minimal dilution in Fleet/Norstar earnings per share. It is the intention of both companies that cash quarterly dividends following the combination not decline for either company's stock holders, the company said. For 1986, Norstar issued 1.31 dlrs annually in cash dividends on its common stock. Fleet's current annual distibution on a pre-split basis would be equivalent to 1.68 dlrs a share. In addition, Fleet and Norstar have each granted the other an option to purchase such number of authorized buy unissued shares of common stock, that will constitute 24.99 pct of the fully diluted shares outstanding. The transaction is subject to both regulatory and shareholder approval. The companies said that after the proposed merger, the combined banking holding wil be among the 25 largest in the country.  
TECK TO INCREASE STAKE IN TRILOGY RESOURCE. <Trilogy Resource Corp> said <Teck Corp> agreed to purchase 4.5 mln Trilogy common shares at one dlr per share in a private placement, which would increase its stake in Trilogy to 37 pct from 29 pct. Trilogy also said its board approved a private placement of 3.5 mln common shares at a price of 90 cts per share to a group of investors. The placement will be made through McNeil Mantha Inc.  
RABBIT SOFTWARE <RABT> TO MAKE ACQUISITION. Rabbit Software Corp said it has agreed in principle to acquire privately-held communications hardware maker Micro Plus II Corp for about two mln common shares, with closing expected by May.  
<AMOUR INC> TO MAKE ACQUISITION. Amour Inc said it has entered into a letter of intent to acquire <Bard International Associates Inc> for 70 mln common shares in a transaction that would give former Bard shareholders control of the combined company. Bard makes tennis and squash racquets and accessories.  
AMERICAN TRAVELLERS <ATVC> TO MAKE ACQUISITION. American Travellers Corp said it has entered into an agreement to purchase ISL Life Insurance Co of Dallas, a corporate shell with active licenses to operate in 12 states, for about 400,000 dlrs. The company said closing is expected by late spring and will result in American Travellers being licensed in seven new states.  
AMERICAN EXPRESS <AXP> UP ON SHEARSON RUMORS. American Express Co climbed 2-1/2 to 80-1/8 on rumors the company was about to announce an agreement to sell 10 pct of its Shearson Lehman Brothers unit to Nippon bLife Insurance of Japan, traders said. Speculation about an impending deal, rumored to be worth 600 mln dlrs, also sent shares of other U.S. brokerages up sharply. PaineWebber Group Inc <PWJ> gained 1-5/8 to 37-1/8 and Merrill Lynch and Co Inc <MER> rose 1-3/8 to 42-7/8. American Express officials declined comment but cited a statement it released more than two weeks ago in which it said it was studying matters of strategic importance. American Express officials also pointed out the earlier statement, issued March one, said it is company policy not to comment on rumors or speculation. The earlier announcement also said American Express and Shearson were studying options including expansion of capacity to meet international competition and broadening access to capital. The latest rumors originated in Tokyo, traders said. If the rumors are true "it gives them a nice infusion of capital for an attractive price," said Lawrence Eckenfelder, analyst at Prudential-Bache Securities.  
CROSS AND TRECKER <CTCO> TO SELL UNIT. Cross and Trecker Corp said its Warner and Swasey subsidiary will seek to sell its Grinding Division to focus on other areas of its business. The company said the Grinding Division had sales last year of about 18 mln dlrs. It makes grinding machines.  
FAIRCHILD PRESIDENT SEEKING MANAGEMENT BUYOUT. Fairchild Semiconductor Corp president Donald Brooks said he intends to take a management buyout proposal to the company's parent at some point in the future and substantial funding is available for such a purchase. Fairchild is owned by Schlumberger Ltd <SLB>. Brooks also told a press conference that if management is successful, it may later attempt to take the company public. "I am sure that if such a management buyout is to occur, and I am hopeful that it does, the public market is one of the avenues we will ultimately have to use to raise capital," Brooks said. Brooks also said the company would continue to attempt an exchange of technology and manufacturing agreement with Fujitsu Ltd if successful in its buyout bid. Futjitsu withdrew an offer to acquire some 80 pct of Fairchild, a semiconductor maker, after U.S. government officials expressed opposition to the transaction. Brooks told the news conference that any purchase would be in the form of a management buyout and not a leveraged buyout. He also said the transaction could be financed through a debt issue or conventional financing from investors. Brooks said management is pleased by a number of investment proposals bought to them, but he added, "the investors must be willing to invest in the future growth of the company and not just selling off assets." Brooks also said he was not aware of any direct intervention by the U.S. in an attempt to block the merger. "I am not aware of any direct contact between Washington and Fujitsu, but that doesn't mean it doesn't exist," Brooks said. He also said Fujitsu executives remain enthusiastic about a link with Fairchild.  
MITSUI <MITSY>, SECURITY PACIFIC <SPC> SET PACT. Mitsui and Co Ltd said it has signed a letter of intent with Security Pacific Corp to buy 50 pct of Japan Security Pacific Finance Co Ltd, for an undisclosed sum, to form a joint venture. Japan Security Pacific has assets of 200 mln dlrs. The joint venture will introduce various financial products to the customer base of Mitsui and its group of companies, the company said. Security Pacific will provide expertise in consumer and commercial lending, as well as data processing support. Japan Security Pacific Finance is a wholly-owned subsidiary of Security Pacific International Finance Inc, which is owned by Security Pacific Corp. Security Pacific said in addition to originating consumer and commercial loans and leases, the joint venture will market related financial products and services.  
PURITAN-BENNETT <PBEN> MAKES ACQUISITION. Puritan-Bennedtt Corp said it has acquired a majority interest in Medicom Inc, which makes a heart monitor for use in diagnosing heart disorders, for undisclosed terms. The company said the device will be sold under the name Companion Heart Monitor.  
UNION <UCO> TO SELL UNION FLONETICS UNIT. Union Corp said it agreed in principle to sell its Union Flonetics Corp subsidiary to Irvin Kaplan, a Houston investor. The unit makes valves and marine specialty equipment for the military. Kaplan is also controlling shareholder of <Hunt Valve Co Inc>. The amount of the cash transaction, expected to close in April, was not disclosed.  
U.S. HOUSE PLAN SEEKS TO BAR FOREIGN TAKEOVER. A U.S. House subcommittee voted to give President Reagan authority to block foreign takeovers of U.S. companies similar to the takeover of Fairchild Semiconductor Corp. by Fujitsu Ltd which was withdrawn. The Energy and Commerce Subcommittee on Commerce approved as an amendment to the overall House trade bill a provision giving Reagan the power to block sales to foreign companies if the sale was not in the national or economic interest. The subcommittee rejected a proposal requiring the U.S. to pay investors one pct for the right to hold their gold investments in government storage. His amendment called for the government to sell gold coins and gold-backed bonds with maturities of 30 to 50 years to investors to reduce the federal debt.  
SIEBE COMPLETES ACQUISTION OF RANCO <RNI>. <Siebe Plc> of the U.K. said it completed the acquisition of Ranco Inc, following approval by Ranco shareholders. According to the terms of the deal, Ranco holders will receive 40 dlrs a share in cash. Ranco will be transferred to one of Siebe's U.S. subsidiaries, Robertshaw Controls Co. Ranco produces automatic control devices and power controls that regulate temperature, pressure, time sequencing, current, fluid flow and humidity. Its Teccor unit makes a specialized line of semiconductors.  
GENCORP ASKS SHAREHOLDERS TO POSTPONE ACTION IN TENDER OFFER.  GENCORP ASKS SHAREHOLDERS TO POSTPONE ACTION IN TENDER OFFER  
MONY FINANCIAL BUYS UNITED ADMINISTRATORS <UAI>. <MONY Financial Services> said it purchased United Administrators Inc in an effort to secure a larger market share for its group insurance line. MONY said this acquisition, coupled with its purchase of Kelly Associates in 1985, contributes to its goal of expanding its group business and improving its product lines.  
FORTUNE <FORF> TO ACQUIRE MARINE SAVINGS. Fortune Financial Group Inc's Fortune Savings Bank subsidiary said it executed a definitive agreement to buy <Marine Savings and Loan Association of Florida> for 10.1 mln dlrs. It said the agreement has been approved by the directors of both banks and is subject to approval of Marine shareholders by a majority vote. Fortune said that under the agreement it will pay 20.10 dlrs cash for each of Marine's 500,000 shares outstanding, among other things.  
HAWKER SIDDELEY CANADA TO SELL UNIT. <Hawker Siddeley Canada Inc> said that, due to poor market conditions for railway freight car manufacturing, it plans to sell its Trenton Works division in Trenton, Nova Scotia. Hawker Siddeley said it set aside a provision of 7.7 mln dlrs for the proposed sale. It also said lower 1986 earnings were due to much lower earnings in transportation equipment and losses in steel castings and forgings, which offset gains in the mining sector and improvements in forestry equipment. Hawker Siddeley also said demand for new railway equipment was limited with export sales frequently restrained by customers' financing difficulties. Demand for steel castings and wheels for Canadian railways continued to be very depressed with maintenance requirements at the lowest level in the past decade. However, there was demand for industrial casting due to increased hydro-electric power generation, the company said. The company said manufacturing of mining machinery and tunnelling equipment showed greatly improved results in the U.S. and export markets, mainly China and India. The Orenda division maintained a high level of activity in aircraft engine repair and overhaul and in the manufacture of engine components. Sawmill equipment and skidder operations were affected by a strike in British Columbia and the extended debate on U.S. imports of Canadian lumber, but there were encouraging signs at yearend, the company said.  
GENCORP <GY> GROUP TO SEEK ANTI-GREENMAIL VOTE. GAMCO Investors Inc, an affiliate of Gabelli and Co, plans to propose an anti-greenmail provision at the GenCorp Inc annual meeting March 31, according to GAMCO Chairman Mario Gabelli. Greenmail often involves the repurchase of shares at a premium by a company from an unwanted investor. GenCorp today received a surprise tender offer from a group that holds 9.8 pct of its stock. Gabelli also said GAMCO has sent a 13-D filing to the Securities and Exchange Commission on the 6.5 pct of GenCorp stock held by GAMCO and its affiliates. The stock amounts to 1,462,000 shares and most of it was reported in an earlier 13-G filing. A 13-G is filed by passive investors to show holdings of more than five pct. Earlier today, General Partners, owned by Wagner and Brown and AFG Industries Inc, launched a 100 dlr per share tender offer for GenCorp. Analysts said the offer was between 10 and 20 dlrs per share too low. GenCorp has made no comment on the offer. Gabelli said he also proposes that management consider spinning off all assets, other than the GenCorp broadcast properties, to shareholders. The licenses of the broadcast properties have long been entangled in a series of challenges. "One thing is going to be clear and that is I'm going to the meeting and putting up "no greenmail," Gabelli said. Gabelli said he fears that greenmail might be a motivation in the offer. The annual meeting is to be held in Akron, Ohio.  
NATIONAL DATA <NDAC> IN PACT WITH SIGNATURE. National Data Communications Inc said it is no longer obligated to issue its majority shareholder <Signature Capital Corp> 20 mln common shares under a previous agreement. National said it entered into a new agreement with Signature, which would have owned about 80 pct of National's common under the prior pact. Under the new pact, National said it granted Signature a five-year option to acquire two mln shares of its common for an option price equal to its current market value. National has about 15.3 mln shares outstanding.  
PILGRIM VENTURE IN MERGER AGREEMENT. <Pilgrim Venture Corp> said it signed a letter of intent to merge with <Marketing Technologies Group Inc>, Rockville Center, N.Y. Under terms of the agreement, Pilgrim, a publicly held corporation, said it will issue two mln shares of authorized but unissued restricted common stock to Marketing Technologies shareholders. The company said it expects to complete the merger by June 17. Marketing Technologies is developing a computer-based advertising system geared toward large advertisers, the company said.  
GENCORP <GY> TO STUDY GENERAL PARTNER BID. GenCorp Inc chairman William Reynolds said the company's board and its financial and legal advisors will study the unsolicited tender offer from <General Partners>. "Right now, our advice to all our shareholders is to wait until the board advises them of its position ... which will happen on or before March 31," Reynolds said. Earlier today, General Partners, controlled by Wagner and Brown and AFG Industries Inc, said it started a tender offer for all of Gencorp's shares and stock purchase rights for 100 dlrs a share. General Partners said the offer, which is due to expire April 14, is conditioned on receipt of sufficient financing and other conditions. "We are asking our shareholders to postpone any decision on whether to accept or reject the offer until the board finishes its evaluation," Reynolds said in a statement. "The Wagner and Brown-AFG offer does not expire until April 14, so shareholders have time to make their decision," he said.  
CANADIAN PACIFIC <CP> SEEKS BUYER FOR UNIT. Canadian Pacific Ltd said it retained Wood Gundy Inc to seek a buyer for Maple Leaf Mills Ltd of Toronto. The company said Maple Leaf had 1986 sales of 819 mln dlrs and an after tax profit of 16.3 mln dlrs. It is a diversified agriproducts company which produces and sells industrial and consumer flour, flour-based products and baked goods. It also operates a fully integrated poultry business and a rendering businesses, markets livestock and poultry feed and distributes grain through a network of country and terminal elevators.  
AIR CANADA COURIER BUY SHARPLY ALTERS INDUSTRY. Air Canada's 54 mln U.S. dlr acquisition of Gelco Corp's <GEC> Canadian unit has dramatically altered Canada's fast growing courier industry, largely dominated by U.S. companies until this year, company officials and analysts said. State-owned Air Canada takes over the country's second largest overnight courier business just two months after another Canadian company, <Onex Capital Corp Ltd>, approved the acquisition of number one ranked Purolator Courier Ltd from New Jersey-based Purolator Courier Corp <PCC>. But analysts said the two acquisitions were prompted by financial restructuring undertaken by the U.S. parent companies and likely don't represent an industry trend toward buying out foreign owned courier operations. "It's a case of whether you can buy from the right people at the right time," McLeod Young Weir Ltd transportation analyst Tony Hine commented. The two acquisitions fit with a larger move by U.S. companies embroiled in a take-over or restructuring to sell-off their Canadian units to generate ready cash, said Nesbitt Thomson Deacon Inc analyst Harold Wolkin. "There is a very good correlation between the U.S. parent selling Canadian subsidiaries and the U.S. parent either being under siege or taking someone else over," he said. Gelco Corp, of Minnesota, decided to sell Gelco Express Ltd as part of its previously announced program to sell off four operating units to buy back shares and pay down debt, Gelco Express marketing vice president James O'Neil told Reuters. The sale is the first under Gelco's divestiture program, and proceeds will be used to help pay down 350 mln U.S. dlrs of debt by year-end, the company said. While company officials declined to disclose earnings and revenue figures, O'Neil said Gelco Express holds a dominant position in the industry, handling more than 50,000 packages a day and generating revenues of more than 100 mln Canadian dlrs a year. The earlier move by Purolator to sell its Canadian unit formed an important part of a company restructuring program, adopted after another Canadian Company, <Unicorp Canada Corp>, acquired a 12.6 pct stake in Purolator and said it would consider acquiring the whole company. Last month, Purolator agreed to be acquired by a company formed by E.F. Hutton LBO Inc and certain managers of Purolator's U.S. courier business. For Air Canada, its acquisition of Gelco's Canadian courier business represents an "excellent financial investment" in a market it sees growing by 25 to 30 pct annually, spokesman Esther Szynkarsky said. The airline also announced it acquired a 65 pct stake in EMS Corp, of Calgary, an in-city messenger service. It did not disclose financial terms, but Szynkarsky said the two acquisitions totalled about 90 mln Canadian dlrs, and the two business have combined yearly revenues of 170 mln dlrs. She said the acquisition fit with Air Canada's strategy of seeking attractive investments that compliment its main airline business. Gelco will continue to operate with current management, independently of Air Canada, although Air Canada already operates its own air cargo business that includes a small door-to-door courier operation. "They're well run, they're a good investment, they're doing well in a growing market, and that's the way we want to keep it," Szynkarsky said. Analyst Hine said the Gelco and Purolator Canadian units will likely retain operating links with their U.S. delivery network, generating traffic for the former parent companies without them having to tie up capital in Canada. "The nature of the business is that incremental traffic is incremental revenue," Hine said. "It's sort of a sausage maker business where you put in place the sausage grinder, and the more sausage you can stuff through, the more money you make," he added.  
GROUP RECONSIDERS COMPUTER MEMORIES <CMIN> BID. A shareholder group led by Far Hills, N.J., investor Natalie Koether said it is reconsidering its plan to seek control of Computer Memories Inc and now plans to sell its entire stake in the company. In a filing with the Securities and Exchange Commission, the group, which includes Sun Equities Corp, said it sold a net 365,375 Computer Memories common shares between March 5 and 17 at prices ranging from 3-3/4 to four dlrs a share, lowering its stake to 687,000 shares, or 6.2 pct of the total outstanding. The group said it reconsidered its takeover plans after the company announced it agreed to a stock swap. On March 12, the Chatsworth, Calif., computer disk drive concern said it agreed in a letter of intent to exchange 80 pct of its stock, all of which would be newly issued, for the assets of privately held Hemdale Film Corp, with Hemdale as the surviving entity. "In light of these disclosures, Sun found it necessary to re-evaluate the feasibility of seeking control of the company and has sold a portion of its shares and currently intends to sell the balance thereof from time to time," the group said. The group, which disclosed plans on Dec 29 to seek control of the company, reserved the right to change its mind again.  
XTRA <XTR> TO BUY FRUEHAUF <FTR> UNIT. XTRA Corp said it agreed to acquire all the stock of RentCo Trailer Corp, a wholly owned subsidiary of Fruehauf Corp for about 70 mln dlrs. RentCo had revenues of about 70 mln dlrs. The transaction is expected to be completed in April and is subject to regulatory approval.  
WICKES COMPANIES <WIX> COMPLETES SALE OF UNIT. Wickes Companies Inc said it completed the sale of its Sequoia Supply division to a new company created by the management of that division. Paul Hylbert, president of Sequoia, has been named president and chief executive officer of the new company.  
LDBRINKMAN <LDBC> CHIEF CUTS CENERGY <CRG> STAKE. LDBrinkman Corp Chairman L.D. Brinkman and members of his family said they cut their stake in Cenergy Corp to 3,647 shares, or 0.4 pct of the total outstanding, from 912,147 shares, or 9.4 pct. In a filing with the Securities and Exchange Commission, the group said it sold 302,833 Cenergy common shares to Snyder Oil Partners L.P. <SOI> on March 14 for 2,725,500 dlrs and gave Snyder another 605,667 shares, in exchange for 524,135 units of limited partnership interests in Snyder.  
U.K. TO SELL OFF REMAINING 31.7 PCT STAKE IN BP. The British Conservative government said it would sell off its remaining 31.7 pct shareholding in British Petroleum Co Plc <BP.L> during the next financial year which starts on April 1. Treasury Financial Secretary Norman Lamont made the announcement to Parliament. He said, "The government's policy is to sell its minority holdings in companies as and when circumstances permit. "As part of this policy I am now able to announce that, subject to market conditions, the government will sell its remaining shares in BP during the 1987/88 financial year." The last sale of British government shares in BP was in September 1983. The government currently holds some 578.5 mln ordinary shares in the company. Lamont said the Treasury would appoint financial advisers for the sale. Merchant banks and stockbrokers interested in being considered for this would be interviewed in early April. In September 1983, the U.K. Government sold 150 mln shares in an underwritten offer for sale by tender. The striking price then was 435 pence - 7.5 pct above the minimum tender price, a Treasury spokesman said. He said the sale of BP shares would not cut across the government's plans to privatise Rolls-Royce, in either April or May, or the sale of BAA Plc, the British airports authority which is slated for privatisation in either June or July.  
SNYDER <SOI> BUYS STAKE IN CENERGY. Snyder Oil Partners LP said it acquired 1.2 mln shares, or 12 pct, of Cenergy Corp. It said it is continuing to review its investment  and has made no determination of its future course of action.  
FAR WEST FINANCIAL <FWF> TO BUY PROGRESSIVE. Progressive Savings and Loan Association <PRSL> said it has agreed in principle to be purchased by Far West Financial Corp's Far West Savings and Loan Association. The acquisition would be a cash merger, with Progressive shareholders receiving up to three dlrs per share, the company said. Progressive Savings has assets of about 500 mln dlrs and operates ten offices in Los Angeles and Orange counties. The agreement is subject to federal and shareholder approval.  
CANADIAN PACIFIC SEEKS BUYER FOR MAPLE LEAF UNIT. Canadian Pacific Ltd said it retained Wood Gundy Inc to seek a buyer for Maple Leaf Mills Ltd of Toronto. The company said Maple Leaf had 1986 sales of 819 mln Canadian dlrs and an after tax profit of 16.3 mln Canadian dlrs. It is a diversified agriproducts company which produces and sells industrial and consumer flour, flour-based products and baked goods. It also operates a fully integrated poultry business and a rendering business, markets livestock and poultry feed and distributes grain through a network of country and terminal elevators.  
GREYHOUND CORP <G> COMPLETES BUS LINE SALE. Greyhound corp said it completed the sale of its Greyhound Lines unit to Dallas-based GLI Holdings Inc for 350 mln dlrs in cash, securities, royalties and other considerations. Greyhound said GLI is authorized to continue using the familiar running dog logo on a red, white and blue shield, while Greyhound Corp will continue to use the running dog alone as its symbol.  
INTERCARE <CARE> DROPS OFFERING, BUYOUT PLANS. InterCare Inc said it terminated plans to acquire Universal Care, a California health mainenance organization, following First Jersey Securities' decision to withdraw as underwriter for InterCare's proposed public debt and equity securities offering. The acquisition was contingent on its ability to obtain financing to fund the 1.9 mln dlr cash portion of the purchase price, InterCare said. It also said the offering was aimed at raising 7.5 mln dlrs for working capital and 1.7 mln to repay debt incurred in connection with its recent acquisition of U.S. Medical Enterprises Inc. The company further stated that it has a 1.7 mln dlr working capital deficit and it will therefore reduce operating expenses by decreasing operating hours, workforce reductions and the sale of certain assets.  
PROVIDENCE ENERGY <PVY> FINALIZES ACQUISITION. Providence Energy Corp said it completed the purchase of North Attleboro Gas co. Terms were not disclosed. North Attleboro serves 2,273 residential customers, 288 commercial customers, and 40 industrial customers.  
ECHLIN <ECH> BUYS STAKE IN CHAMPION PARTS<CREB>. Champion Parts Rebuilders Inc said Echlin Inc has bought a 20 pct stake in it by acquiring 600,000 newly issued shares and warrants to buy another 300,000 shares at 9.20 dlrs each, for a total investment of 5,400,000 dlrs. The newly issued shares raises Champion's outstanding shares to 3,113,074. There are no voting restrictions on the new shares. Champion's board will be expanded to include two or three independent persons suggested by Echlin, it said. Champion will use the proceeds to pay down long-term debt, it said. Echlin has agreed to limits on buying additional Champion shares and its ability to seek control of Champion during the next seven years, Champion said. Echlin will also receive protection against the decline in price of Champion's stock for seven years. Echlin could receive a one-time payment, at its option in cash or stock, ranging from up to one dlrs a share in 1989 to four dlrs a share in 1992 to 1994, to the extent the market price of Champion shares is less than nine dlrs a share at those times.  
FLEET <FLT> AIMS TO SPEED MERGER WITH NORSTAR. Fleet Financial Group hopes its proposed merger with Norstar Bancorp <NOR>, ranked as the largest U.S. banking merger, can be completed by the beginning of 1988, according to an executive of Fleet. Robert Lougee, director of corporate communications for Rhode Island-based Fleet, told Reuters the company is exploring the possiblity of seeking a change in the national trigger date for the state's reciprocal bank law to Jan 1, 1988 from July one. The decision is up to the Rhode Island legislature. The merger plan was announced in a midday news release that said the deal, worth about 1.3 billion dlrs, would be consummated July one when Rhode Island barriers to interstate banking outside of New England come down. "If we can consummate the deal earlier that would be better for all concerned," Lougee said. He said to the best of his knowledge a change in the Rhode Island law would not be a hardship for any other banking institution in the state. He said Fleet is optimstic Connecticut law, which only permits interstate banking mergers within New England, can be amended. Fleet owns First Connecticut Bancorp. If the Connecticut law is not amended in time, Lougee said, an option would be to spin off that unit with repurchase provisions. The New England reciprocal banking laws have excluded New York as a means of protecting regional banks from being gobbled up by the money center giants. Wall Street analysts said the merger accord between Fleet and Albany, N.Y.-based Norstar demonstrates the rapid pace of interstate banking mergers since state legislatures begain permitting regional mergers on a reciprocal basis. The U.S. Supreme Court decided in mid-1985 to permit the mergers. Fleet and Norstar in a joint statement billed the proposed merger as "a partnership of two companies." Both will continue to operate existing headquarters after the merger. Norstar holders will receive 1.2 Fleet shares for each one of theirs following Fleet's previously announced two-for-one split. Fleet shares closed today at 59-1/2, up 1/8, giving the deal an indicated value of 1.3 billion dlrs. That topped the proposed merger of Los Angeles-based Security Pacific Corp <SPC> and Seattle's Rainier Bancorpartion <RBAN>. The West Coast deal, announced about four weeks ago, is worth an estimated 1.2 billion dlrs. Chemical New York Corp's <CHL> acquisition of Texas Commerce Bancshares last year was valued at about 1.2 billion dlrs, making it similar in size to the Security Pacific-Rainer deal. The California combination of Wells Fargo and Co <WFC> and Crocker National Corp last year was worth 1.1 billion dlrs and there have been several bank mergers in the southeast valued in the 700-800 mln dlr range. "It's a merger of equals," said analyst John Rooney of Moseley Securities Corp. He said Norstar had a book value at the end of 1986 of 19.63 dlrs per share, while Fleet's book value was 28.02 dlrs. Rooney noted that Norstar chairman Peter Kiernan is in his 60's while Fleet's Terrence Murray is in his late 40's. He said Kiernan would probably head the combined company until his retirement then Murray could assume the top post. Analyst Thaddeus Paluszek of Merrill Lynch and Co said Fleet's earnings would have been diluted about two pct in 1986 on the basis of the merger terms announced today. He noted that Fleet has a "teriffic reputation" after having diversified in a number of financial areas. Fleet has established consumer banks in the southeast and is known as an innovator in securitization of mortgages. The merged banks would have assets in excess of 25 billion dlrs and be one of the 25 largest banks in the U.S.  Norstar operates in most of New York state but not in New York City. Lougee said at some point in the future banking operations that both Norstar and Fleet operate in the state of Maine would be combined. The agreement between Norstar and Fleet includes a "lock-up" option designed to deter other acquirers. Each granted the other an option to purchase authorized but unissued shares amounting to 24.99 pct of the fully diluted shares outstanding.  
GENCORP <GY> BIDDER PLANS SALE OF AEROSPACE UNIT. <General Partners>, controlled by privately-held Wagner and Brown and by AFG Industries Inc, said plans to sell GenCorp Inc's aerospace and soft drink bottling divisions if it succeeds in acquiring the company. In a filing with the Securities and Exchange Commission, General Partners said proceeds from the sale of GenCorp's aerospace division would help it repay some of the debt it would incur in the 100 dlr a share cash tender offer. General Partners, which launched the surprise tender offer today, said it already 2,180,608 shares of GenCorp, or 9.4 pct of the total outstanding common stock. General Partners, which estimated the total cost of the takeover at 2.5 billion dlrs, also said it plans to continue GenCorp's policy of trying to settle Federal Communications Commission charges against two of its television and 12 radio station licenses. It said it would also continue GenCorp's policy of trying to sell its New York-area television station WOR to MCA Inc <MCA> for 387 mln dlrs and its Los Angeles station KHJ to Walt Disney Co <DIS> for 217 mln dlrs. But General Partners said it plans to keep GenCorp's headquarter in Akron, Ohio. General Partners also said it would maintain GenCorp's plastics and industrial products division as well as tires and related products. But it left open that it might make other changes in GenCorp's operations after it completes the merger. Besides using 250 mln dlrs of its own equity for the tender offer, General Partners said it would seek one billion dlrs under a secured margin facility from Wells Fargo Bank N.A. and other banks. It also said it would seek 1.25 billion dlrs from the sale to Shearson Lehman Brothers Holdings Inc or its affiliates of senior subordinated promissory notes. In a March 18 letter to GenCorp Chairman William Reynolds, which was included in the SEC filing, General Partners officials said they were "confident of our ability to promptly obtain the remaining funding as described in our offer materials." "For this reason, we do not forsee any obstacles to a prompt consummation of the transaction," General Partners said. Shearson is dealer manager of the General Partners offer for GenCorp.  
MONSANTO <MTC> SAYS DEBT WAS CUT IN 1986. Mondanto Co said it has paid off two-thirds of the debt from its 2.8 billion-dlr acquisition of G.D. Searle and Co by the end of 1986. This lowered the company's debt-to-capitalization ratio from 45 pct at the end of 1985 to 35 pct, it said. The company also said that chemical sales accounted for 52 pct of its sales in 1986, down from 70 pct in 1981. This underscores its strategy of shifting away from low profit commodity chemicals in mature markets into higher value chemical businesses in high growth areas, it said.  
LIFESTYLE <LIF>, BOMBAY AMEND MERGER AGREEMENT. Lifestyle Restaurants Inc said it reduced the number of Bombay Palace Restaurants inc common shares to be received in its previously announced merger agreement. Under the amended deal, Lifestyle shareholders will get one Bombay share for each six instead of five Lifestyle shares. Under the amended offer, Bombay will issue about 900,000 shares, currently 7.2 mln dlrs. The amendment also increases the cash consideration to be offered on Lifestyle's 13 pct convertible subordinated debentures from 55 pct of the principal amount to 57.5 pct.  
NIPPON LIFE SEEKING TIE WITH U.S. SECURITIES HOUSE. <Nippon Life Insurance Co> is pursing a possible link with an American securities house to expand its overseas investment portfolio, a company spokesman said. But he declined to comment on rumours the company would take a 10 pct stake in <Shearson Lehman Brothers>, an investment banking unit of American Express Co <AXP>. He said the firm started to sound out several U.S. Investment banks on capital participation about 18 months ago and was narrowing the number of prospects, but he did not say if it had set its sights on one firm. Nippon Life, Japan's largest life insurer, also plans to set up a wholly owned investment unit, <Nissei International America>, in New York next month and subsidiaries in Canada, Singapore, the Cayman Islands and Jersey this year, he said. These moves are in line with its long-term strategy to put more emphasis on overseas investment management as opportunities at home are declining while the company's assets are growing. The company is especially attracted by the scale and depth of U.S. Money and credit markets and wants to establish a firm foothold there, the spokesman added.  
MITSUI AND CO BUYS STAKE IN IMATRON. A Mitsui and Co <MITS.T> spokesman said its subsidiary <Mitsui and Co USA Inc> bought two mln dlrs of newly-issued shares in <Imatron Inc>, an unlisted California-based medical equipment manufacturer. Mitsui and Co USA is now Imatron's fifth-largest shareholder with 3.1 pct of the firm's outstanding shares. Imatron is capitalised at 32.76 mln dlrs, the spokesman said. Mitsui and Co intends to import Imatron's computerised diagnostic equipment into Japan, he said.  
SANWA BANK ACQUIRES SMALL STAKE IN PORTUGUESE BANK. Sanwa Bank Ltd <ANWA.T> has agreed to buy a two pct stake in Oporto-based <Banco Portugues de Investmento Sarl> (BPI), Portugal's largest merchant bank, a Sanwa official said. Sanwa will purchase the shares from International Finance Corp, a BPI shareholder and sister organisation of the World Bank, for 351 mln yen, he said. The acquisition will be completed this month as both the Japanese and Portuguse governments are expected to give permission soon.  This is the first time a Japanese bank has bought a stake in a Portuguese bank. Sanwa plans to increase its stake in BPI to four pct, the ceiling for foreign shareholders, the official said. The bank has also agreed with <Banco Portugues do Atlantico>, a state-owned merchant bank in Oporto, to exchange information on customers and help accelerate Japanese investment and technological transfers to Portugal, he said.  
NIPPON LIFE SEEKING TIE WITH U.S. SECURITIES HOUSE. <Nippon Life Insurance Co> is pursing a possible link with an American securities house to expand its overseas investment portfolio, a company spokesman said. But he declined to comment on rumours the company would take a 10 pct stake in <Shearson Lehman Brothers>, an investment banking unit of American Express Co <AXP>. He said the firm started to sound out several U.S. Investment banks on capital participation about 18 months ago and was narrowing the number of prospects, but he did not say if it had set its sights on one firm. Nippon Life, Japan's largest life insurer, also plans to set up a wholly owned investment unit, <Nissei International America>, in New York next month and subsidiaries in Canada, Singapore, the Cayman Islands and Jersey this year, he said. These moves are in line with its long-term strategy to put more emphasis on overseas investment management as opportunities at home are declining while the company's assets are growing. The company is especially attracted by the scale and depth of U.S. Money and credit markets and wants to establish a firm foothold there, the spokesman added.  
SANWA BANK ACQUIRES SMALL STAKE IN PORTUGUESE BANK. Sanwa Bank Ltd <ANWA.T> has agreed to buy a two pct stake in Oporto-based <Banco Portugues de Investmento Sarl> (BPI), Portugal's largest merchant bank, a Sanwa official said. Sanwa will purchase the shares from International Finance Corp, a BPI shareholder and sister organisation of the World Bank, for 351 mln yen, he said. The acquisition will be completed this month as both the Japanese and Portuguse governments are expected to give permission soon.  This is the first time a Japanese bank has bought a stake in a Portuguese bank. Sanwa plans to increase its stake in BPI to four pct, the ceiling for foreign shareholders, the official said. The bank has also agreed with <Banco Portugues do Atlantico>, a state-owned merchant bank in Oporto, to exchange information on customers and help accelerate Japanese investment and technological transfers to Portugal, he said.  
AMERICAN EXPRESS SAYS IT'S HOLDING TALKS ON SALE OF SHEARSON STAKE TO NIPPON LIFE.  AMERICAN EXPRESS SAYS IT'S HOLDING TALKS ON SALE OF SHEARSON STAKE TO NIPPON LIFE  
AMERICAN EXPRESS <AXP> MAY SELL SHEARSON STAKE. American Express Co said it and its Shearson Lehman Brothers Inc subsidiary have been holding talks on the possible equity investment in Shearson Lehman by <Nippon Life Insurance Co> of Japan. The company said, "The discussions have led to a general understanding by which Nippon Life would purchase a 13 pct equity investment in Shearson Lehman for approximately 530 mln dlrs and American Express, Shearson Lehman and Nippon Life would explore mutually advantageous, nonexclusive business and investment opportunities." The company said a definitive agreement on the matter is subject to a number of conditions, including approval of the American Express board and the Japanese Ministry of Finance. The company said its board is scheduled to meet March 27 for its regular monthly sessions. American Express said it is continuing to evaluate various courses of action of strategic importance to Shearson Lehman in addition to the possible investment by Nippon Life. It said the options range from expanding Shearson's capacity to meet international competition, to broadening further its access to capital. The company also said, "All the courses of action under study reflect the continuing integral role of Shearson Lehman in American Express' worldwide financial services strategy."  
<FI-TEK CORP> TO MAKE ACQUISITION. Fi-Tek Corp said it has signed a letter of intent to acquire <Voice Systems and Services Inc> for an undisclosed amount of stock. It said on completion of the acquisition it would change its name to Voice Systems and Services Inc.  It said VBoice Systems has received a 3,600,000 dlr contract to provide FLP Communications of Dallas with voicemail systems through service bureaus located throughout the U.S. and has also contracted to provide voicemail systems and administration to M and S Communications.  
FIRST WISCONSIN <FWB> TO MAKE ACQUISITION. First Wisconsin Corp said it has agreed to acquire North Shore Bancorp Inc of Northbrook, Ill., for 6,160,000 dlrs in cash, or slightly more than twice book value, subject to approval by North Shore shareholders and regulatory authorities. The company said completion is expected in the third quarter.  
WASTE MANAGEMENT SAYS IT IS PREPARED TO RAISE ITS BID FOR CHEMLAWN TO 33 DLRS A SHARE.  WASTE MANAGEMENT SAYS IT IS PREPARED TO RAISE ITS BID FOR CHEMLAWN TO 33 DLRS A SHARE  
NATIONAL CAPITAL <NCETS> TO MAKE SALE. National Capital Real Estate Trust said it has entered into a definitive agreement to sell its Irvine Commercial Center in Irvine, Calif., to Shuwa Corp of California for 10.85 mln dlrs. It said the buyer has pl;aced 250,000 dlrs into an escrow account as a nonrefundable deposit. The trust said existing debt secured by the property of about 6,700,000 dlrs in due on completion of the transaction, which is expected in early April.  
WASTE MANAGEMENT<WMX> TO RAISE CHEMLAWN<CHEM>BID. Waste Management Inc said it sent a letter to the ChemLawn Corp board, saying it is prepared to increase its bid for ChemLawn to 33 dlrs a share, from 27 dlrs, if ChemLawn promptly negotiates and executes a simple two-step merger agreement containing only essential covenants and conditions. Upon such an agreement, Waste Management said, it would amend its 27 dlrs a share cash tender offer.  
METRO FUNDING SHAREHOLDERS APPROVE MERGER. <Metro Funding Corp> said its shareholders approved its merger into <Maxcom Corp> and its change of incorporation from Nevada to Delaware. Metro Funding also said its subsidiary, Comet Corp, will be renamed Maxcom USA. The company also reported shareholders approved the authorization of 500,000 shares of common stock to be set aside for an incentive stock option plan.  
TELECOM <TELE> SAYS SALE CLOSING DELAYED. Telecom Plus International Inc said the closing of the sale of its 65 pct interest in Tel Plus Communications Inc to <Siemens AG> has been delayed. The company said it will be continuing its talks with Siemens and based on current circumstances believes the transaction could close next week. Closing had been scheduled for March 16.  
MEDIQ <MED> IN AMERICAN MEDICAL <AMI> UNIT BUY. MEDIQ Inc said its MEDIQ Diagnostic Imaging Partners - I LP has signed a letter of intent to acquire substantially all the assets of American Medical International Inc's AMI Diagnostic Services Inc subsidiary for undisclosed terms. The company said AMI Diagnostic operates seven magnetic resonance and mutli-modality diagnostic imaging centers. MEDIQ Diagnostic is a limited partnership of which MEDIQ is general partner.  
CYCLOPS <CYL>BOARD RESTRUCTURED TO INCLUDE DIXON. Cyclops Corp said its board has been restructured under the terms of the company's merger agreement with <Dixons Group plc> following the British company's acquisition of 54 pct of Cyclops' stock. The company said its board is now composed of three Cyclops executives -- Chairman W.H. Knoell, President James F. Will and Senior Vice President WIlliam D. Dickey -- and three Dixons executives -- Vice-Chairman and Financial Director Egon von Greyerz, Corporate Finance Director Gerald M.N. Corbett, and Secretary Jeoffrey Budd.  
BLOCKBUSTER ENTERTAINMENT <BBEC> SELLING UNIT. Blockbuster Entertainment Corp said it will sell its investment in Amtech Corp to the company chairman, David Cook, and president, Kenneth Anderson. The company said the sale is taking place because Amtech is not compatible with Blockbuster's main line of business, will require substaintial additional funding to develop and market its product, and is expected to sustain operating losses for the forseeable future. The company said Cook and Anderson will form a new company with the sale called Amtech Holdings Inc.  
SCAN-GRAPHICS TO MERGE WITH PUBLIC COMPANY. Scan-Graphics Inc said it will be acquired by Captive Venture Capital Inc, a public company, in a stock transaction approved by shareholders of both companies. As a result of the merger, the former shareholders of Scan-Graphics will become the majority shareholders of Captive Venture Capital. The name of the corporation will be changed to Scan-Graphics Inc and its borad of directors will be composed of individuals now on the Scan-Graphics board. Under the terms of the deal, Capitive Venture Capital will issue 1.6 mln shares of restricted convertible preferred stock, convertible into 16 mln shares of common stock, in exchange for all outstanding stock of Scan-Graphics. Upon completing the deal, there will be 2,649,500 common shares of Capitive Venture Capital issued and outstanding, of which 149,500 shares will be held by the public. In addition, there are 95,050 tradeable class A warrants and 100,000 B warrants, each of which entitles the holder to buy 10 shares of common stock at 1.25 dlrs and 1.50 dlrs, respectively, a share. Scan-Graphics makes systems that allow users to convert graphic documents, such as charts, maps and engineering drawings, into computer data that can be displayed, edited and stored by computer. Currently, Captive Venture Capital stock is traded over the counter and will soon trade under the Scan-Graphics name. Application for Nasdaq listing is expected as soon as requirements are met.  
RANK XEROX <XRX> TO SELL SOUTH AFRICAN UNIT. Xerox Corp's U.K. unit, Rank Xerox Ltd, said it agreed in principle to sell its South African company, Rank Xerox South Africa Pty Ltd, to <Altron Group's> Fintech unit. Terms of the deal were not disclosed. Altron said the acquisition was key to making Fintech an office systems company. The South African Rank Xerox unit sells copiers and duplicators throughout South Africa and in Namibia (South West Africa). It has over 800 employees, all of whom will be retained by Fintech when the deal closes, Rank Xerox said.  
AMCAST <ACST> COMPLETES SALE OF NEWMAN DIVISION. Amcast Industrial Corp said it completed the sale of its Newman Division to Newman Manufacturing Inc, a new company formed by Newman's employees. The sale price was not disclosed. Amcast said Newman's Kendallville, Indiana plant is one of the country's largest producers of gray iron castings for the automotive and commercial air conditioning and refrigeration industries. It said the plant employs 300 people. Amcast said it decided to sell the division to move out of the gray iron castings business.  
ALCOA <AA> TO SELL AMERICAN POWDERED METALS. Aluminum Co of America said it has signed a letter of intent to sell its American Powdered Metals Co subsidiary to R.W. Technology Inc for undisclosed terms, with completion expected in early May. American Powdered makes metal parts for various industries.  
RICHARDSON <RELL>TO BUY ITALIAN SEMICONDUCTOR FIRM. Richardson Electronics Ltd said it agreed to buy for undisclosed terms, G.E.B., Giant Electronics Brand, a Florence, Italy-based distributor of electron tubes and semiconductors.  
FINANCIAL PERFORMANCE <FPCC> PURSUES EXPANSION. Financial Performance Corp said it continued its rapid expansion with a signing of a partnership agreement with Gold Sierra Financial Advisors, founded by former Bank of America officers in capital markets. It said the agreement, under which it owns 50 pct of the partnership, enables it to move into the mergers and acquisitions business.  
FED APPROVES AMSOUTH <ASO> AFFILIATION. AmSouth Corp said the Federal Reserve Board approved the affiliation of First Tuskaloosa Corp with Amsouth. The approval was the final regulatory step in the affiliation process which began in August, Amsouth said. Under terms of the affiliation, each First Tuskaloosa shareholder will receive 66 dlrs value of AmSouth stock for each share held. The total consideration is valued at 105.6 mln dlrs.  
INDEPENDENCE BANCORP <INBC> COMPLETES MERGER. Independence Bancorp Inc said it completed its merger with Scranton, Penn.-based <Third National Bank and Trust Co>, with assets of 316 mln dlrs. Independence said its combined assets are now 2.5 billion dlrs. The company said that each share of Third National common will be exchanged for 4.06 shares of its common. Independence said the merger will be accounted for as a pooling of interests.  
CORROON AND BLACK <CBL> COMPLETES ACQUISITION. Carroon and Black Corp said it completed the acquisition of <Poggi-Harrison Agency Inc> and <Risk Control Inc>. Terms of the acquisitions were not disclosed. Separately, Carroon said it also completed the acquisition of <Rosskopf, Rapp and Schmidt Insurance Agency>, based in El Monte, Calif.  
BENETTON OF ITALY SEES EXPANSION, ACQUISITIONS. <Benetton SpA> of Italy expects to further diversify into financial services and is weighing possible acquisitions, a Benetton spokeswoman here said. "We are thinking of diversification outside of the retail line," the spokeswoman said. "We are looking at financial services and other manfacturing companies." However, she said the company was not targeting the U.S. for its planned expansion, but was looking at a number of different countries. The company's shares are traded in the U.S. as American Depository Receipts, which were issued through an offering by Morgan Stanley Group Inc <MS> earlier this month. Benetton is now holding talks with Wall Street firms about the possibility of receiving a quotation of its shares on the New York Stock Exchange. "There's absolutely no timetable. It may not even happen," the spokeswoman said. She also denied reports that the company was considering an issue of convertible bonds with warrants in the U.S. "We're not thinking of issuing bonds," she said. In line with its planned Global expansion efforts, Benetton is also holding talks with the Soviet Union to explore the possibility of opening up to 150 stores in the country. But the spokeswoman pointed out that many companies are holding talks with the Soviets. "We are in discussions and are looking forward to some response," she said. She added the company had no firm timetable on when a response might be received.  
REXNORD <REX> SEES MAY MERGER WITH BANNER <BNR>. Rexnord Inc said it expects to merge with a wholly-owned subsidiary of Banner Industries Inc in early May. Late last month, Banner said it completed a tender offer for and held 96 pct of Rexnord's common shares.  
WARBURG BEGINS TENDER OFFER FOR SYMBION <SYMB>. Symbion Inc said <Warburg, Pincus Capital Co L.P.> began a tender offer to purchase up to 2.5 mln shares, or about 33 pct, of Symbion's shares at 3.50 dlrs per share. Warburg already owns about 26 pct of Symbion. Symbion has 7,472,000 shares outstanding. The company makes artificial hearts. Symbion said its board and management are carefully reviewing the offer and on or before March 30 will advise its shareholders on whether it accepts or rejects the offer. If the tender offer is successful, Warburg wll own about 59 pct of Symbion.  
SOLAR SYSTEMS <SSDN>, INKEY OF SPAIN SET PACT. Solar Systems by Sundance Inc said it agreed to buy a 45 pct interest in a company that will sell condoms produced by INKEY SA of Spain. It said a spermicide used in INKEY's condoms contains an ingredient that may help prevent the sexual transmission of AIDS. The ingredient was cited in an article in the West German publication, Aids Forschung. But it said the article was about the ingredient and did not mention the spermicide or the condoms made by INKEY. The company also said it is changing its name to Eurocapital Corp shortly. Solar Systems said it was buying the 45 pct stake in a U.S.-based <Europharmaceutical Co>. INKEY and an affiliate own the remaining shares of the company, which was set up to distribute condoms and vaginal products that are made, or are being developed by INKEY. The agreement calls for a two mln dlr payment to Inkey for the distributorship. The first 500,000 dlr payment is due 30 days after the products are approved by the Food and Drug Administration. It said Europharmaceutical plans to soon file with the FDA to market the condom, but expects the approval process to be a lengthy one. The company said the active ingredient in the spermicide is currently used in the U.S. in antiseptic applications unrelated to condoms. As far as it knows, the ingredient has not been tested in a spermicide. Inkey's condoms will be sold in the U.S. under the brand name, "Carlton." The exclusive distribution contract for the products runs for three years and is renewable for one-year periods, the company said. It said the condoms are currently sold in Spain but have not gone on sale in other European countries. It said Europharmaceutical currently does not have the resources to make the payments under the distribution agreement or fund the studies necessary to obtain marketing approval from the FDA. The company also said Europharmaceutical is in talks to acquire either one or more publicly held companies with little or no assets. In the event an acquisition goes through, Solar Systems' interest in Europharmaceutical would be diluted below its current 45 pct.  
PRIME MEDICAL <PMSI> SAYS MERGER TALKS END. Prime Medical Services Inc said merger talks with National HMO Corp <NHMO> have been terminated. Prime gave no reason for the termination of the talks with National HMO.  
INVESTMENT GROUP HAS MOORE-HANDLEY <MHCO> STAKE. A group of New York investment companies told the Securities and Exchange Commission they have acquired 173,000 shares of Moore-Handley Inc, or 6.9 pct of the total outstanding common stock. The firms, Robert H. Barker and Co, J.M.R. Barker Foundation, Quaker Hill Associates L.P., Upland Associates L.P. and James M. Barker Trust, said they bought the stock for two mln dlrs soley for investment purposes. But the group said it might buy more Moore-Handley shares.  
GREYHOUND <G> BUYS GENERAL MOTORS <GM> BUS UNIT. Greyhound Corp said it has signed a definitive agreement to buy General Motors Corp's U.S. Transit Bus and Parts business for an undisclosed sum. The agreement, tentatively set in January, includes production tooling, design and equipment for urban transit buses, inventories and trademark identification. The agreement also incudes the right to buy GM's Canadian Transit Bus and Parts business, contingent on a satisfactory labor agreement. Greyhound said it will relocate the production facilities, currently in Pontiac, Michigan, to an undetermined location.  
MARK IV SAYS IT DOES NOT PLAN BAIRD <BATM> BUY. Mark IV Industries Inc <IV>, which has said it is mulling a bid to seek control of Baird Corp, said it has no present plans to acquire more than 25 pct of the company's total outstanding common stock. In a filing with the Securities and Exchange Commission, Mark IV said its top officials told Baird executives at a March 17 meeting that while Mark IV may buy more Baird common stock, it presently intends to hold it to the 25 pct limit. Mark IV, which first disclosed its stake and interest in Baird on March 10, has reported it holds 391,800 Baird common shares, or 17.6 pct of the total outstanding. Mark IV said it also agreed at the meeting that if it decides to seek control of Baird, it would be through a negotiated merger or business combination or through a tender offer in which Baird would have at least 24 hours notice. Baird, in turn, agreed not to take any defensive measures without giving Mark IV at least 24 hours notice, it said. Baird also confirmed that a takeover defense plan it already has which is triggered by the accumulation of more than 25 pct of its stock, would not be triggered by a tender offer, Mark IV said. Both parties also agreed to adjourn pending litigation they have against one another, it added.  
GREAT <GAMI> TO BUY STANDARD<SRD> UNITS' ASSETS. Great American Management and Investment Inc said its 80 pct-owned subsidiary agreed to buy certain assets of two subsidiaries of Standard Oil Co, for 40 mln dlrs and the assumption of certain liabilities. Great American Industrial Group Inc agreed to acquire all the U.S. and United Kingdom assets of Pfaudler Co and the stock of certain Brazilian, Mexican, and West German subsidiaries of Kennecott Mining Corp, it said. Pfaudler and Kennecott are subsidiaries of Standard Oil.  
FIRST FINANCIAL <FFMC> BIDS FOR COMDATA <CDN>. First Financial Management corp said it has offered to acquire Comdata Network Inc for 18 dlrs per share in cash and stock, or a total of about 342.7 mln dlrs. The company said for each Comdata share it would exchange half a First Data share and enough cash to bring the total value up to 18 dlrs per share, provided that the market price of First Financial stock were not less than 28 dlrs per share. It said the cash payment would be based on the average market price of First Financial during a period shortly before closing. First Financial said it would not pursue the offer if Comdata's board rejected it.  Comdata has already agreed to be acquired by a partnership for either 15 dlrs a share in cash or at least 10 dlrs in cash and uniuts of securities. The partnership that made the first offer for Comdata was Welsh, Carson, Anderson and Stowe.  Comdata had previously entered into an agreement, which collapsed, for a repurchase of six mln shares at 14.50 dlrs each and for the sale of one mln shares by a director to <Mason Best Co>. Mason Best already owns 1,800,000 Comdata shares. A group led by <Rosewood Financial Inc> has also disclosed ownership of 6.2 pct of Comdata's 19.0 mln shares outstanding and said it might seek to increase its interest to over 15 pct. The company said Comdata shareholder approval would also be required for its proposal.  
POP RADIO <POPX> GETS RITE AID <RAD>. POP Radio Corp said it has signed a seven-year agreement to provide Rite Aid Corp with in-store customized disc jocky-hosted radio programs, resulting in an increase of more than 50 pct in the total number of stores POP now has under contract. Value was not disclosed.  
VULCAN <VUL> WITHDRAWS JONES/VINING <JNSV> BID. Vulcan Corp said it was discontinuing its efforts to negotiate a purchase of the common stock of Jones and Vining Inc. On February 6, Vulcan, a Cincinnati maker of shoe lasts and other products, offered five dlrs a share for all of Jones and Vining common, subject to certain conditions. Vulcan said it is dropping the proposal because it believes subsequent actions by Jones and Vining are hostile and Vulcan is only interested in a friendly transaction. Jones and Vining makes shoe lasts and shoe components. It has about 3.7 mln shares outstanding.  
TEMPO <TPO> TO SELL CABLE SYSTEMS TO EAGLE. Tempo Enterprises Inc said it signed a letter of intent to sell seven cable television systems, representing about 5,000 subscribers, to <Eagle Cable>. Terms of the acquisition were not disclosed.  
ERBAMONT <ERB> ACQUIRES ANTIBIOTICOS S.A.. Erbamont N.V. said its major shareholder <Montedison SpA>, which owns 85 pct of its common, and Farmitalia Carlo Erba, its 75 pct owned subsidiary, have acquired <Antibioticos S.A.> and related subsidiaries. Terms of the acquisition were not disclosed.  
AZURE VENTURES TO BUY ADVERTISING UNIT. <Azure Ventures Ltd> said it signed a letter of intent to acquire John Paul Richards and Associates Inc. The company said if the merger is approved by shareholders of both companies, the shareholders of John Paul Richards would become majority shareholders, owning 60 pct of the common stock, of the new public company.  
ODYSSEY FILMPARTNERS <ODYY> DROPS MERGER TALKS. Odyssey Filmpartners Ltd said is terminated discussions to acquire <United Color Labs>, pursuant to a Jan 27 letter of intent for it to buy the company for stock and cash.  
UNITED JERSEY BANKS <UJB> TO MERGE TWO BANKS. United Jersey Banks said it plans to merge two of its southern New Jersey member banks into one 704 mln dlr organization. It said United Jersey Bank/Fidelity Bank, based in Pennsauken, will be merged into United Jersey Bank/South in order to improve customer service and maximize efficiency throughout the southern New Jersey markets. Raymond Silverstein, currently chairman of the board of United Jersey Bank/Fidelity, will be chairman of the merged bank, the company said.  
TALKING POINT/AMERICAN EXPRESS <AXP>. American Express Co's plan to sell a stake in its Shearson Lehman Brothers is believed to be a prelude to a public offering of shares in the brokerage unit, analysts said. American Express earlier said it has a general understanding with Nippon Life Insurance Co of Japan to sell a 13 pct interest in Shearson for 530 mln dlrs. The statement triggered a rise in other brokerage stocks, as investors speculated on the possibility of more investment in the U.S. brokerage industry by Japanese concerns. The stocks of brokerage firms also climbed in response to the relatively high value Nippon put on its stake in the U.S. firm. Analysts said the 530 mln dlrs for 13 pct represents a price of 2.7 times book value. Perrin Long of Lipper analytical said the brokerage stocks, depressed somewhat by the dark cloud of the U.S. insider trading scandal, closed out February at a market value of 1.8 times book value. American Express was trading today at 78-1/4, off 3/8. For the last several weeks, the stock has been strong on rumors of a spinoff of part of Shearson. Analysts said American Express and its Shearson unit will benefit from the doors Nippon Life can open to the increasingly important Tokyo financial markets. "I think this, in all honesty, is a preliminary step," said Long. "What you will see probably in the future is American Express selling an additional 17 pct in the public market and have a public vehicle for Shearson," Long said. "Normally, investors do not make a major capital commitment into an illiquid situation," he said of Nippon. Some analysts previously speculated a 20 pct stake in Shearson might be sold to the public. They said the firm, like other investment banks, needs capital to expand globally. American express has said the total employees of shearson will expand by 20 pct in 1987 internationally. However, that number is substantially lower than growth last year, a company spokesman said. American Express officials would not comment beyond a statement made this morning. That statement, however, did not close off the possibility of a public offering or other option for Shearson. David Anthony, a Smith Barney analyst, said it is possible Shearson would be partially sold to the public. But he believes the firm will digest the Nippon investment first. "I think they'll figure out what they're going to do with the money they have," he said. Joan Goodman, an analyst with Pershing and Co, also said American Express could determine to sell shares to the public. In its statement, the financial services giant said it is continuing to study various plans for Shearson in addition to the investment by Nippon. American Express said options under study range from expanding Shearson's capacity to meet international competition to broadening its access to capital. American Express also said the options reflect the continuing integral role of Shearson in American Express' worldwide financial services strategy. Shearson follows Goldman, Sachs and Co in finding a Japanese partner. Goldman last year sold a 12.5 pct stake to Sumitomo Bank in exchange for a 500 mln dlr capital infusion. Analysts speculated there will be more such matches. "Those (U.S. brokers) companies have the expertise. They don't have the money. There's just not enough internal capital growth," said Wertheim analyst James Hanbury, who follows other U.S. brokerage companies. Hanbury said some Japanese companies, flush with cash, are interested in the expertise of American brokers. "Those (Japanese) companies have the capital and our companies have the capital needs and the growth opportunities to use the money. That's a nice marriage," he said. Morgan Stanley and Co <MS> rose 4-1/4 to 74-7/8. First Boston Corp <FBC> was up one to 51-1/4. E.F. Hutton Group <EFH> rose 1-1/4 to 41-1/8, and PaineWebber Group <PWJ> climbed 7/8 to 37-3/4. Merrill Lynch and Co, recommended today by a PaineWebber analyst, rose 2-5/8 to 45-3/8.  
AMBASSADOR FINANCIAL <AFGI> UNIT TO BUY BUILDER. Ambassador Financial Group Inc said its Ambassador Real Estate Equities Corp, agreed to buy Heritage Quality Construction Co Inc. Ambassador said its unit would purchase 100 pct of Heritage's stock for an initial payment of approximately 500,000 dlrs and subsequent payments in cash over a five-year period equal to 50 pct of the net after-tax profit of Heritage. If the acquisition is consummated, Ambassador said it agreed to contribute 250,000 dlrs to the existing capital of Heritage.  
FCS <FCSI> RECEIVES MERGER PROPOSAL. FCS Laboratories said its investment banker, Butcher and Singer Inc, received a preliminary merger proposal from another company in the healthcare field. FCS said that if various aspects of the proposal are better defined, its board may consider it. FCS said merger negotiations with this other company have been continuing since late August.  
TRI-STAR <TRSP> BUYS CINEPLEX THEATER. Tri-Star Pictures Inc said it agreed to acquire the Roosevelt Field Century Theatre from Canada's Cineplex Odeon Corp's RKO Century Warner Theatres Inc for 17 mln dlrs. The recently refurbished and expanded theater is located in Garden City, N.Y..  
DORSEY <DSY> COMPLETES SALE OF UNIT. Dorsey Corp said it completed the sale of substantially all its Dorsey Trailers Inc subsidiary assets to <Trailer Acquisition Corp>, whose stockholders include a former Dorsey vice president and several executives of the Dorsey Trailers management team. Terms of the acquisition were not disclosed.  
SOROS LIFTS KING WORLD <KWP> STAKE TO 8.1 PCT. New York investor George Soros, and an investment fund he controls, said they raised their stake in King World Productions Inc to 2,485,510 shares, or 8.1 pct of the total outstanding, from 1,986,710 shares, or 6.5 pct. In a filing with the Securities and Exchange Commission, Soros said his group bought a net 498,800 King World common shares between Jan 8 and March 6 at prices ranging fropm 18.924 to 21.203 dlrs a share.  
CINEPLEX ODEON BUYING COKE <KO> CINEMA UNIT. <Cineplex Odeon Corp> said it agreed in principle to acquire the Walter Reade Organization Inc New York cinema chain from Coca-Cola Co's Entertainment Holdings Inc unit for 32.5 mln U.S. dlrs. Cineplex said the purchase price consisted of 22.5 mln dlrs cash and 652,742 Cineplex common shares. The transaction is subject to fulfilment of certain unspecified conditions and regulatory and board approvals. Walter Reade operates 11 screens in eight Manhattan locations.  
HENKEL TO INCREASE STAKE IN CLOROX <CLX>. Clorox Co said <Henkel KGaA> of Dusseldorf, West Germany, agreed to increase its holdings in Clorox to 30 pct from the current level of 23 pct. Henkel, which also holds a subordinated note convertible into another 1.7 pct of the company's stock, intends to acquire the additional shares in the open market over an extended period of time, Clorox said. It also said that, for the foreseeable future, Henkel does not intend to increase its participation in Clorox above the 30 pct level.  
INTERMARK<IMI> SEEKS MAJORITY PIER 1 <PIR> STAKE. Intermark Inc, which together with one of its subsidiaries already holds a 43.4 pct stake in Pier 1 Imports Inc, told the Securities and Exchange Commission it plans to acquire a majority of the company's voting stock. Intermark said it already holds 6,839,827 Pier 1 common shares, or 35.66 pct, and its Pier 1 Holdings Inc holds 1,484,516 shares, or 7.74 pct. Intermark said it also has 341,991 shares of Pier 1 preferred stock, or 35.2 pct of the outstanding, while Pier 1 Holdings has 74,225 shares, or 7.6 pct.  
JOSTEN'S <JOS> TO SELL UNIT TO CAREERCOM <CRCM>. Josten's Corp said it agreed to sell its proprietary school business to CareerCom Corp, for 20 mln dlrs in cash and about 1.7 mln CareerCom common shares. Upon completion of the proposed transaction, Josten's will own 20 pct of CareerCom's stock, which it intends to hold for investment purposes, it said. Proprietary school sales totaled about 56 mln dlrs and accounted for less than 10 pct of Josten's total revenue, it added.  
GROUP HAS 6.4 PCT OF ATLANTIC RESEARCH <ATRC>. A group led by Halcyon Investments, a New York securities and risk arbitrage partnership, said it has acquired 486,400 shares of Atlantic Research Corp, or 6.4 pct of the total outstanding common stock. In a filing with the Securities and Exchange Commission, the Halcyon group said it bought the stake for 15.6 mln dlrs for no specific purpose. The group said it has no plans to seek control of Atlantic Research, which has been sought by Clabir Corp <CLG>, but said it may buy more stock or sell some or all of what it has.  
TAG GROUP TO CUT VALERO ENERGY<VLO> STAKE. An investor group told the Securities and Exchange Commission it plans to cut its stake in Valero Energy Corp to 402,925 shares, or 1.6 pct of the total outstanding, from 1,522,850 shares, or 6.0 pct. The group, led by TAG Group S.A. of Luxembourg, said it filed with the SEC on Feb 20 a notice that it proposes to sell 1,119,925 shares of Valero Energy common stock.  
HARMON <HRMN> TO BUY RECYCLING FIRM FOR CASH. Harmon Industries Inc said it signed a letter of intent to acquire for about 3.5 mln dlrs, a majority of the stock of SNP Inc, a Portland, Oregon-based company which has patents to reprocess used railroad ties into new ties for resale.  
BAYOU INTERNATIONAL BUYS STAKE IN SOLOMECS. <Bayou International Ltd> said it purchased one-third of the outstanding stock of Solmecs Corp N.V., a Netherlands Antilles corporation, for 1,750,000 dlrs. Bayou said it will also receive two seats on Solmecs' board. Bayou Ltd is 55.2 pct owned by Australia Wide Industries Ltd. Solmecs develops technology relating to energy conversion.  
KRUNG THAI BANK TO TAKE OVER SAYAM BANK. The state-owned Krung Thai Bank Ltd will start taking over state-owned Sayam Bank Ltd and complete the process in a year, Finance Minister Suthee Singhasaneh told a press conference. He said the takeover decision was made this week to stem the current heavy losses of Sayam and to avoid competition between the two state-owned institutions. The minister said some of the existing 30 Sayam Bank branches will be merged with their Krung Thai counterparts, while others will continue operating but under Krung Thai's name. Sayam Bank has existed since August 1984 when the Finance Ministry took over and re-named the Asia Trust Bank Ltd. Sayam president Waree Havanonda told reporters last month her bank posted a loss of more than 400 mln baht in 1986. At the end of 1985 the bank, with 13.8 billion baht of assets, was ranked 12th among Thailand's 16 local commercial banks. Waree said Sayam Bank was trying to recall about six to seven billion baht of loans extended by its previous private management and was taking legal action to collect another four to five billion baht of doubtful debts. Krung Thai is Thailand's third largest bank.  
RAINBOW AND EQUITICORP PLACE ULTRAMAR STAKE. New Zealand investment companies <Rainbow Corp Ltd> and <Equiticorp Holdings Ltd> have placed the majority of their joint shareholding in oil and gas conglomerate Ultramar PLC <UMAR.L> at prices up to 2.20 stg per share, the companies said in a statement. The companies said they had bought their 4.9 pct stake in Ultramar for a total of 50 mln N.Z. Dlrs through a joint venture company formed for that purpose in October. They said the joint venture made a profit of 15 mln N.Z. Dlrs on the deal, but they did say how many shares they had sold. No further details of the sale were available.  
GUINNESS STARTS COURT ACTION AGAINST SAUNDERS. Guinness Plc <GUIN.L> said it has started court proceedings against former chairman and chief executive Ernest Saunders and non-executive director Thomas Ward for recovery of 5.2 mln stg. The money was paid to Ward via Marketing and Acquisition Consultants Ltd in Jersey. Guinness said earlier it would propose a resolution at the annual meeting in May to remove Saunders and Ward as directors of the company.  Earlier this month, lawyers for Ward told a Jersey court that Ward saw the payment as his reward for services in last year's takeover battle for <Distillers Co Plc>. Guinness has said that both men breached their fiduciary duty in authorising the payment. Saunders resigned from his executive positions at Guinness in January in the aftermath of a government enquiry into share dealings during the battle for Distillers but retained his position on the board. No spokesman for Guinness was immediately available for comment on the statement.  
GERMAN VEBA PLACEMENT SAID LIKELY EARLY NEXT WEEK. The placement of the German federal government's 25.6 pct stake in utility Veba AG <VEBG.F> would probably take place early next week, banking sources said. Share dealers said speculation had arisen in the early pre-bourse market that the Veba announcement could come as early as today. But one banking source, though confirming that most of the details had been worked out, said the chances of an announcement today were about nil. He had no price details. The 10 mln shares on offer are expected to bring a cash call in Germany for well over two billion marks. The share was around 253 marks today after a 6.50 drop to 252 yesterday.  
KLM EXPANDS TALKS WITH BRITISH AND COMMONWEALTH. KLM Royal Dutch Airways <KLM.AS> said it agreed to take full control of a partially owned Dutch-based parcel delivery service and will offer a minority stake in it to British and Commonwealth Shipping Plc <BCOM.L> KLM, seeking to strengthen its market position in the fast growing door-to-door delivery market, said it agreed with Dutch retailer Vendex International <VENN.AS> to take over Vendex's 50-pct in their jointly-owned courier, <XP System VOF>. Ownership of XP will now be brought into the talks started by KLM last week with British and Commonwealth for a one-third stake in the latter's <IML Air Services Group Ltd> courier. When announcing the negotiations with British and Commonwealth last week, KLM said buying a minority stake in IML could involve a convertible loan issue. A KLM spokeswoman said the Dutch flag carrier would now offer a minority stake in XP to British and Commonwealth in the negotiations on IML, but declined to elaborate on financial aspects of the talks. She said KLM would like the two courier services to cooperate in future and did not exclude a future merger between them to combine IML's strong world-wide network with XP's mainly European activities. XP System is based in the southern Dutch airport of Maastricht and has an annual turnover of 100 mln guilders. KLM, which is also negotiating with British and Commonwealth for a 15-pct stake in the latter's regional airline <Air U.K. Ltd>, says door-to-door delivery courier services are seeing substantially faster growth than traditional cargo activities.  
RAINBOW SAYS BRIERLEY UPSETTING PROGRESSIVE MERGER. <Rainbow Corp Ltd> said <Brierley Investments Ltd> (BIL) is trying to disrupt Rainbow's planned merger with <Progressive Enterprises Ltd>. Rainbow chairman Allan Hawkins said in a statement, "In our opinion BIL have deliberately tried to create anomalies in the market prices of Rainbow and Progressive shares since the merger was announced." The merger, announced in February, involves the formation of a new company, <Astral Pacific Corp Ltd>, which Rainbow and Progressive shareholders will enter into on a one-for-one share basis. Both boards have approved the merger. BIL has said it was the mystery bidder behind a recent stand in the market for three mln Progressive shares. "We simply regard Progressive Enterprises shares to be worth approximately twice as much as Rainbow shares and do not think the merger, as proposed, is soundly based," BIL chief executive Paul Collins said in an interview in the weekly National Business Review newspaper published today. Collins was not immediately available to respond directly to Hawkins' statement. Hawkins said the merger has been assessed by independent consultants and declared fair in all respects, with benefits to all shareholders. "We are not going to stand by while other parties distort the picture for their own strategic purposes and distract the market away from the real benefits of the merger," he said. "In our opinion, BIL's actions are clearly not designed to be in the long term interests of either Progressive or Rainbow shareholders," Hawkins said.  
NEWMAN, HAWKER DISCUSS ELECTRIC MOTOR MERGER. <Newman Industries Plc> said it was discussing the possible merger of its electric motor operations with Hawker Siddeley Group Plc's <HSID.L> <Brook Crompton Parkinson Motors Ltd> unit. Newman has electric motor operations in the U.K. And Australia. The company gave no further details but said a further statement would be made shortly. Newman shares eased one penny on the announcement to 43p while Hawker was unchanged at 528p, three pence higher on last night's close.  
AKZO BUYS RHONE-POULENC HOUSEHOLD UNITS. Dutch chemical group Akzo N.V. <AKZO.AS> said it agreed to take over household product subsidiaries of French group Rhone-Poulenc <RHON.PA> for an undisclosed sum. Under the agreement, Akzo will acquire the household product activities of the Lyons-based <Rhodic> and Remalard-based <Buhler-Fontaine> units of Rhone Poulenc. Together, these activities account for over 180 mln French francs in annual sales and employ 170, Akzo said. Akzo will integrate the firms, to be partially joined with its own French activities, in its consumer products division.  
SWISS BANKER WANTS BOND RATINGS, SHARE DISCLOSURE. A top Swiss banker called for an obligatory, continuous rating for all Swiss franc bonds and said he believed anyone buying more than five pct of a company should be made to declare their share. In comments at a news conference of <Vontobel Holding AG>, chairman Hans Vontobel said he believed it was up to the banks' own self-regulating bodies, such as the Swiss Admissions Board, to take such action before governmental bodies stepped in. A decline in the average quality of borrowers on the Swiss franc market and a debate on the use of registered shares to prevent takeovers have made both major issues among bankers. Vontobel noted that many borrowers already came to the market with ratings from the major U.S. Agencies, which were readily available to professionals through specialised information systems. "We should make this classification obligatory and publish it in places that are easily accessible to lay people," he said. The quick changing nature of the financial market meant these ratings should also be continually updated, he said. Vontobel also noted that recent years had seen companies, worried about takeovers, increasingly issuing registered shares and participation certificates rather than bearer shares. However, both types of issue had a drawback, he said. The recent attempt by Jacobs Suchard AG <JACZ.Z> to take over Hero Conserven Lenzburg <HERZ.Z> had shown the limits of a 1961 pledge by the banks not to sell registered shares to someone who was not eligible according to the company's statutes. Excessive issue of participation certificates, which do not carry voting rights, would also be contrary to the principle of greater democracy in the new share law before Parliament. "People buying, for example, more than five pct of a company's shares should be made to declare their purchase," he said.  
FLEET <FLT> COULD FACE CONNECTICUT DIVESTITURE. Fleet Financial Group said it might have to sell its First Connecticut Corp subsidiary as a result of its proposed 1.3 billion dlr acquisition of Norstar Bancorp <NOR>. Under Connecticut banking law, New England based bank holding companies such as Fleet are not allowed to operate Connecticut banks if they merge with companies from outside the region.  Norstar is based in Albany, N.Y. First Connecticut has assets of about two billion dlrs. Fleet has total assets of about 21 billion dlrs. Fleet said it will seek to have the Connecticut law amended to allow it to retain First Connecticut, which is based in Hartford. Fleet's acquisition of Norstar is now expected to be completed around July 1, 1988, when a change in laws in Fleet's home state of Rhode Island allowing interstate banking outside New England will go into effect.  
C.O.M.B. <CMCO> TO ACQUIRE REST OF CABLE VALUE. C.O.M.B. Co said its board has approved a proposal to acquire the 50 pct of Cable Value Network held by its cable television industry partners in exchange for warrants for C.O.M.B. common. The company, which already owns the other 50 pct of CVN, said it plans to change its name to CVN. C.O.M.B. said the proposal calls for its cable partners to receive about eight mln five year warrants in exchange for their 50 pct interest in CVN and commit to a long-term affiliation agreement to carry CVN programming. C.O.M.B. said the proposed warrants would carry an exercise price of 18.125 dlrs a share. It said the 7,869,353 warrants originally offered to cable partners will continue to vest on the pre-agreed schedule. The company now has about 18.1 mln shares outstanding. C.O.M.B. said the transaction is subject to the parties entering into an agreement which would be subject to approval by its shareholders and regulatory agencies.  
TWA IN LEGAL STIPULATION NOT TO PURSUE THE ACQUISITION OF USAIR.  TWA IN LEGAL STIPULATION NOT TO PURSUE THE ACQUISITION OF USAIR  
OHIO EDISON SELLS 30 PCT OF NUCLEAR INTEREST FOR 509 MLN DLRS.  OHIO EDISON SELLS 30 PCT OF NUCLEAR INTEREST FOR 509 MLN DLRS  
OHIO EDISON <OEC> SELLS 30 PCT OF NUCLEAR INTEREST. Ohio Edison Co said it has completed the sale and leaseback of 30 pct of its 30 pct interest in Unit One of the Perry Nuclear Power Plant, receiving 509 mln dlrs for the interest. The utility said the share of its interest in the 1,205 megawatt generating plant was sold to a group of institutional investors which leased it back to the company for a period of about 29 years at a negotiated lease payment rate. Ohio Edison said the proceeds will be used to finance the rest of its 1987 construction program and repay bank loans incurred for the retirement of high-interest long-term debt. Ohio Edison did not detail the lease payments, but it said the "payments will reduce the amount of revenue the company will need to cover our investment in Perry, which translates into savings for our customers." The utility said it projects the financing could reduce the amount of annual revenue needed by about 20 mln dlrs. It plans on filing a rate application with the Public Utilities Commission of Ohio to recover the Perry costs later this year. It said the sale and leaseback was attractive to the investors because they could take quicker advantage of tax benefits than the utility could.  
TWA <TWA> IN COURT SETTLEMENT WITH USAIR <U>. Trans World Airlines Inc said it reached an agreement yesterday in federal court with USAir Group Inc that prevents TWA from buying additional shares of USAir. Under the agreement, TWA, which holds about 15 pct of USAir stock, will not buy more USAir shares before April 23 and will not do so after that date without giving 14 days notice to USAir. TWA also agreed that it would not knowingly and willingly interfere with the consummation of the merger between USAir and Piedmont Aviation Inc <PIE>. TWA said the court agreement confirms previous announcements by the company, in filings with the Securities and Exchange Commission, that it does not presently intend to seek control of USAir or to acquire additional common stock. As a result of the agreement, the court removed a previous temporary restraining order against TWA, the company said. TWA and USAir have also agreed that all litigation between them in Pittsburgh and Delaware will be stayed until April 23. TWA said the agreement does not prevent it from commenting to regulatory agencies on the USAir, Piedmont merger. In a separate statement, USAir said the agreement also included a provision that all USAir shares currently owned by TWA and its chairman, Carl Icahn, will be voted through a voting trust in proportion to the votes of other shares not controlled by TWA or Icahn.  
AMERICAN MOTORS <AMO> BOARD MEETING ON TAKEOVER. American Motors Corp's board of directors is meeting this morning in New York to consider Chrysler Corp's <C> 1.5 billion dlr takeover offer, an American Motors spokesman said. The spokesman reiterated statements made earlier in the week that the regularly scheduled meeting was being held. The spokesman would not comment on recurring speculation that the board might receive a higher offer from Chrysler. Analysts have said the fact that American Motors' stock has remained above the four dlrs a share Chrysler offer could lead the larger company to raise its bid. The American Motors spokesman said he had not seen any indication that a higher offer would be received from Chrysler, although he added, "I don't know what the conversation is in the meeting." He repeated statements made earlier in the week by the automaker that today's meeting will probably not result in a final decision on the Chrysler bid. "The board first apprised the proposal on the 11th (of March). I suspect there will be several more (meetings) after this," the spokesman said. The meeting is expected to go through early afternoon.  
UNIVERSAL RESOURCES <UVR> TO VOTE ON MERGER. Universal Resources Corp said it is holding a special shareholders meeting this morning to vote on the previously-proposed merger between it and Questar Corp <STR>. Universal, whose stock was delayed this morning on the American Stock Exchange, said it will release a statement later in the day on the vote.  
LOUISIANA PACIFIC <LPX> BUYS OREGON SAWMILL. Louisiana Pacific Corp has agreed to pay 3,475,000 dlrs for the bankrupt Harris Pine Sawmill in Pendleton, Ore., the mill's bankruptcy trustee said. Louisiana Pacific refused to indicate whether it would repoen the lumber mill which was closed after the sawmill owned by the Seventh Day Adventist Church filed a bankruptcy petition in Portland federal court in December. The trustee said the company outbid WTD Industries Inc for the lumber mill, harvested logs and contracts to harvest timber in the national forest. It outbidhell bankruptcy trustee said.  
FIRST FEDERAL <FFBN> MERGING INTO BANKEAST <BENH>. First Federal Bank FSB said it has entered into a letter of intent to merge into BankEast Corp for 60 dlrs per First Federal share in BankEast common stock. First Federal said, subject to certain adjustments, including First Federal's earnings prior to the close of the deal, each share of its common stock shall not be converted into less than 2.9 shares or more than 3.5 shares of BankEast common. First Federal said the proposed move is also subject to execution of a definitive agreement, regulatory approval and the approval of First Federal shareholders.  
ILLINOIS TOOL WORKS <ITW> SELLS TWO DIVISIONS. Illinois Tool Works Inc said it completed the sale of its Drill and End Mill division, Pine Bluff, Arkansas and Eclipse Counterbore division, Detroit, to newly-formed Eclipse Industrial Pruducts Inc, based in St. Louis.  Terms were not disclosed. All employees at both locations will be retained, it added.  
VERTEX <VETX> TO BUY COMPUTER TRANSCEIVER STAKE. Vertex Industries Inc and <Computer Transceiver Systems Inc> jointly announced an agreement for Vertex to acquire a 60 pct interest in Computer after it completes a proposed reorganization. Computer has been in reorganization proceedings under chapter 11 since September 1986. The companies said the agreement would allow Computer's unsecured creditors and debenture holders to receive new stock in exchange for exsiting debt, and for shareholders to receive one new share of Computer's stock for each four shares previously held.  The companies said the United States Bankruptcy court for the Southern District of New York has given preliminary approval for the proposal, which is subject to formal approval by Computer's creditors and the court. Under the agreement, Vertex also said it would supply Computer with 250,000 dlrs of operating funds, and arrange renegotiation of its secured bank debt, among other things.  
COOPER CANADA SAID IT RECEIVED TAKEOVER OFFERS. <Cooper Canada Ltd> said it has received takeover offers from "a number of companies." The company also said that "discussions are continuing, but no definitive arrangements have been made." It gave no further details.  
ILLINOIS REGIONAL <ILLR> MULLS AFFILIATION. Illinois Regional Bancorp said it is evaluating whether to affiliate with a larger bank holding company or continue to remain independent. The 500 mln dlr-asset bank holding company said that in view of recent investor interest in suburban Chicago banks, it retained Merrill Lynch Capital markets to advise it on its alternatives. Last year, Illinois Regional had discussions with Milwaukee-based Marine Corp <MCRP> but no agreement was reached, a company spokesman said.  
CARTERET SAVINGS<CBC> COMPLETES SALE OF BRANCHES. Carteret Savings Bank said it has completed the previously announced sale of six Virginia branches to Charter Federal Savings and Loan Association <CHFD>. Carteret said it has opened a retail banking office in Vienna, Va., as the next step in its move to build a strong presence in the Washington, D.C., Baltimore, Md., area. Carteret said the new bank has two offices outside Baltimore, which were acquired last June when Carteret merged with Admiral Builders Savings and Loan Association. The company said it plans to open a retail banking office in downtown Washington this summer, plus several more offices in Baltimore County and others in Fairfax County, Va. Carteret said it may open more loan offices in Virginia and Maryland.  
ENVIROPACT <VIRO> TO MAKE ACQUISITION. Enviropact Inc said it has signed a letter of intent to acquire Willms Trucking Co Inc for about 12.5 mln dlrs, with completion expected in 45 days. In the year ended September 30, Willms had revenues of about 15 mln dlrs.  It transports hazardous waste, sand and gravel.  
ITALY SETS RULES FOR COMPANY HOLDINGS IN BANKS. Companies will henceforth be able to own stakes in banks, but these should not constitute a "dominant" holding, an Italian government committee ruled. The Interministerial Committee on Credit and Savings, headed by Treasury Minister Giovanni Goria, said its decision reflected the "need to safeguard the principle of separation between banks and non-financial concerns." It did not quantify what might constitute a "dominant" holding. The committee also set conditions for the allocation of credits by banks to companies or individuals holding stakes in them, and stipulates conditions under which the Bank of Italy could exercise its powers of control in the case of stakes held by banks in companies or other banks. Under the ruling, credits given by banks or their subsidiaries to groups or individuals holding five pct or more of the bank's capital must not exceed defined limits. The value of credits given cannot exceed either one-fifth of the combined capital and reserves of the bank itself or two-fifths of the value of the stake owned in the bank by the group or individual concerned. Exceptions to these conditions include credits to concerns in which the bank itself has a stake and to branches of foreign banks. Credits made by foreign companies or banks to subsidiaries which have their legal base in Italy will also be excluded from the conditions. The Bank of Italy will request banks to insert rules in their statutes to ensure that companies or individuals holding five pct or more of the bank's capital are not given privileged treatment with regard to credit allocation and terms. With regard to bank holdings in companies, the Bank of Italy can exercise supervisory controls when information on a bank's consolidated activities show single shareholdings in a company or another bank of 25 pct or more, owned directly or indirectly. Such controls can also be exercised even if the stake held is below 25 pct if it can be considered a controlling interest. The controls will not be exercised in cases where the value of the bank's stake in a concern is below the lesser of two predefined limits. These limits are set at 15 billion lire or two pct of the total assets of the parent company of the shareholding bank.  
COGECO BUYS FM STATION, PLANS SHARE ISSUE. <Cogeco Inc> said it agreed to acquire 100 pct of Quebec City radio station CJMF-FM and will issue subordinated voting shares of the company to cover a portion of the purchase price. It said the purchase price and other terms of the transaction have not been disclosed. The transaction is subject to approval of the Canadian Radio-Television and Telecommunications Commission.  
AUDIO/VIDEO <AVA> SUES OVER CYCLOPS <CYL> BID. Audio/Video Affiliates Inc said it has filed suit against <Dixons Group PLC>, Cyclops Corp, Alleghany Corp <Y> and others in connection with Dixons' recently completed tender offer in which it raised its ownership of Cyclops to 56 pct. The company said the suit, filed in U.S. District Court for the Southern District of Ohio, seeks a temporary restraining order and preliminary injunction requiring Dixons, for 10 business days, to permit any Cyclops shareholder who previously tendered and now wishes to withdraw to do so. The company said the order and injunction would also prohibit Dixons from exercising a "lockup" option granted it by Cyclops and prohibit Dixons for 10 business days from attempting to exercise any control over Cyclops. Audio/Video said the suit also requests the court to order Cyclops to immediately provide to all potential bidders for Cyclops all information given to Dixons. Audio/Video and Citicorp <CCI> have been tendering for all Cyclops shares in a competing offer at 80.00 dlrs per share but said it could raise its bid to 92.50 dlrs under certain circumstances.  Dixons offered 90.25 dlrs in its tender. In February Alleghany agreed to buy Cyclops' steel and nonresidential construction business for 111.6 mln dlrs in cash and the assumption of liabilities.  
DIXONS SAYS SEC MOVING ON CYCLOPS <CYL> TENDER. <Dixons Group PLC> said the Securities and Exchange Commission has authorized, but not commenced, the filing of an action against it concerning its waiver of a condition in its tender offer for Cyclops Corp. Dixons has offered to buy about 80 pct of Cyclops shares. The SEC action deals with a waiver by Dixons of a condition in the tender offer which was made without an appropriate extension of the offer, Dixons said. Dixons also said it is currently discussing the matter with the SEC. The SEC has a standing policy of never confirming or denying investigations or upcoming legal action.  
JAPAN, BRITAIN DISAGREE ON TELECOM MERGER. Cable and Wireless Plc <CAWL.L> is resisting attempts to merge two Japan-based telecommunications firms in the hope that overseas political pressure will force a change in those plans, a company executive said. Cable and Wireless, which holds a 20 pct stake in one of the two Japanese firms, is opposed to plans to reduce its share to three pct in the merged firm, director of corporate strategy Jonathan Solomon told reporters. That plan, put forward by a senior member of the powerful business organization Keidanren with the tacit backing of the Post and Telecommunications Ministry, has caused a storm of protest from abroad that Japan is seeking to exclude foreign firms from a meaningful position in the market. Pacific Telesis Group <PAC.N> of the United States also holds a 20 pct stake in one of the newly formed consortia, <International Digital Communications Inc> (IDC). Solomon said that both British Prime Minister Margaret Thatcher and U.S. Secretary of State George Schultz have written to the Japanese government about the planned merger. A key U.S. Senate committee, Commerce Secretary Malcolm Baldrige and Trade Representative Clayton Yeutter have also expressed opposition to the merger, he said. The Post and Telecomunications Ministry reiterated again that it sees no need for two competitors to <Kokusai Denshin Denwa Co Ltd>, which holds a monopoly on international calls from Japan. The ministry has also suggested that foreign shareholders not hold managerial positions in the new firm. In an attempt to hammer out an agreement, Solomon today met Fumio Watanabe, the senior Keidanren officer trying to arrange the merger. But the two sides remained deadlocked. At stake is C and W's 400 mln dlr project to lay fibre optic cables between Japan and Alaska, to form part of its global network. "C and W wants to start right away on the project, such as application and other procedures," said Watanabe, who is also chairman of <Tokio Marine and Fire Insurance Inc>. The Japanese side is saying that the decision on such a plan should be left with the new firm, after the merger. "These decisions (on the merger) were made in consideration of Japan's economic conditions and legal systems. I told him we are not a colony or something," said Watanabe.  
U.S. AGENCY TO ALLOW U.S. AIR TO BUY 51 PCT OF PIEDMONT PENDING FINAL OKAY OF MERGER.  U.S. AGENCY TO ALLOW U.S. AIR TO BUY 51 PCT OF PIEDMONT PENDING FINAL OKAY OF MERGER  
WASTE MANAGEMENT AMENDS CHEMLAWN OFFER, RAISING IT TO 35 DLRS A SHARE FROM 33 DLRS.  WASTE MANAGEMENT AMENDS CHEMLAWN OFFER, RAISING IT TO 35 DLRS A SHARE FROM 33 DLRS  
AMERICAN MOTORS SAID DIRECTORS TOOK NO ACTION ON CHRYSLER PROPOSAL, POSTPONES ANNUAL MEETING.  AMERICAN MOTORS SAID DIRECTORS TOOK NO ACTION ON CHRYSLER PROPOSAL, POSTPONES ANNUAL MEETING  
WASTE MANAGEMENT<WMX> HIKES CHEMLAWN <CHEM> BID. Waste Management Inc said it amended its offer to buy the outstanding shares of ChemLawn Corp to 35 dlrs a share. On Thursday the company said it was prepared to bid 33 dlrs a share, up from its original 27 dlrs a share offer. As a result of the price increase, made through Waste Management's wholly owned subsidiary, WMX Acquisition Corp, the offer has been extended and the withdrawal rights will not expire at midnight EDT April Two, unless further extended. Waste Management also said it amended its offer to provide that the tender offer price will not be reduced by ChemLawn's 10 cts a share dividend payable to holders of record April 1, 1987.  
U.S. SAYS USAIR <U> MAY BUY 51 PCT OF PIEDMONT. The Department of Transportation said it will allow USAIR Group to acquire up to 51 pct of Piedmont Aviation <PIE> voting stocks pending final approval of the proposed merger of the two airlines. The agency said the stock would have to be held in a voting trust controlled by an independent trustee. An agency spokesman said that if USAIR, which has proposed to buy all of Piedmont shares, controls more than 51 pct of the firm's outstanding stock, it will have one week to sell those excess shares. USAIR asked the Department of Transporation earlier this month to approve a voting trust. An agency spokesman said this is a device that airlines use to get majority control of a company it is trying to acquire while their application before the government is pending approval. The spokesman said the firm had asked the transporation agency permission to buy all of Piedmont's voting stock, the but agency decided to give approval for 51 pct of shares. The spokesman said agency action on the proposed merger application could take as long as six months.  
AFFILIATED PUBLICATIONS TO BUY BILLBOARD PUBLICATIONS  FOR 100 MLN DLRS.  AFFILIATED PUBLICATIONS TO BUY BILLBOARD PUBLICATIONS  FOR 100 MLN DLRS  
AMC <AMO> TAKES NO ACTION ON CHRYSLER <C> BID. American Motors Corp said its directors reviewed a Chrysler Corp merger proposal but took no action on it. The company said its directors met in New York today at a regularly scheduled meeting. The board's review is continuing with the company's independent legal and financial advisers, American Motors said in a statement issued from New York. American Motors' board voted to postpone its annual shareholders meeting scheduled for April 29 in Southfield, Michigan. The next regularly scheduled meeting of American Motors board will be April 29, although it is expected that directors will meet again prior to that date, according to the statement. Early last week, Chrysler said it agreed to buy the 46.1 pct interest owned by Regie Nationale des Usines Renault in American Motors and acquire the balance of American Motors in a transaction valued at 1.11 billion dlrs. Later that week, AMC said it had retained financial and legal advisers and expected to meet periodiocally over the next several weeks to consider the proposal.  
AFFILIATED PUBLICATIONS <AFP> TO BUY BILLBOARD. Affiliated Publications Inc said it agreed to acquire all the outstanding stock of <Billboard Publications Inc> for 100 mln dlrs in cash from a shareholder group led by <Boston Ventures Limited Partnership.> Affiliated, which owns the company that publishes the Boston Globe, said the acquisition will give it a strong position in the growing market for specialty magazines. Under a separate agreement, Affiliated said that certain members of Billboard's management plan to buy up to 10 pct of the equity in Billboard following Affiliated's acquisition of the company. Billboard publishes eight specialty magazines, including Billboard magazine, and 15 annual directories. It also publishes and distributes speciality books under four imprints and operates two book clubs. Affiliated is the parent company of Globe Newspaper Co, publisher of the Boston Globe. It also has interests in cellular telephone and paging services providers.  
FIRM HAS ALLEGHENY INT'L <AG> PREFERRED STAKE. Spear, Leeds and Kellogg, a New York brokerage partnership, said it has acquired 136,300 shares of Allegheny International Inc's 11.25 dlr convertible preferred stock, or 7.1 pct of the total outstanding. In a filing with the Securities and Exchange Commission, Spear Leeds said it bought the stake for 11.7 mln dlrs as part of its normal trading activities.  
WTD INDUSTRIES <WTDI> SAWMILL OFFER REJECTED. WTD Industries Inc said its offer to buy the bankrupt Harris Pine sawmill in Pendleton, Oregon was rejected by the bankruptcy court trustee. The company said the bid was rjected in favor of a higher offer.  
CELINA <CELNA> SHAREHOLDERS APPROVE SALE. Celina Financial Corp said shareholders at a special meeting approved a transaction in which the company transferred its interest in three insurance companies to a wholly owned subsidiary which then sold the three companies to an affiliated subsidiary. It said the company's interests in West Virginia Fire and Casualty Co, Congregation Insurance co and National Term Life Insurance Co had been transferred to First National Indemnity Co, which sold the three to Celina Mutual for cash, an office building and related real estate.  
GROUP HAS 5.1 PCT OF UNICORP AMERICAN <UAC>. Two affiliated New York investment firms and an investment advisor told the Securities and Exchange Commission they have acquired 555,057 shares of Unicorp American Corp, or 5.1 pct of the total outstanding. The group, which includes Mutual Shares Corp, said it bought the stake for 5.3 mln dlrs for investment purposes and has no intention of seeking control of Unicorp American.  
REVLON BUYS GERMAINE MONTEIL COSMETICS FROM BEECHAM GROUP FOR UNDISCLOSED TERMS.  REVLON BUYS GERMAINE MONTEIL COSMETICS FROM BEECHAM GROUP FOR UNDISCLOSED TERMS  
REVLON <REV> BUYS BEECHAM'S COMSMETICS UNIT. Revlon Group Inc said it bought Germaine Monteil's cosmetics business in the U.S. from the Beecham Group PLC. Terms of the sale were not disclosed. The sale includes the rights to Germaine Monteil in North and South America and in the Far East, as well as the worldwide rights to the Diane von Furstenberg cosmetics and fragrances lines and the U.S. distribution rights to Lancaster beauty products. Meanwhile in London a statement from Beecham said the business was sold to Revlon for 2.5 mln dlrs in cash and a royalty payment.  
MARK IV CORRECTS AGREEMENT WITH BAIRD <BATM>. Mark IV Industries Inc <IV>, which has said it may consider a bid to seek control of Baird Corp, said Baird has not agreed to hold off on any defensive measures without giving Mark IV at least 24 hours notice. In a filing with the Securities and Exchange Commission, Mark IV corrected a statement it made yesterday in another SEC filing in which it listed several agreements reached with Baird, including that Baird would not take any anti-takeover steps without providing at least 24 hours notice. Mark IV said it was later told by Baird that Baird had given no such assurance.  
GENERALE DE BANQUE, HELLER BUY FACTORING UNIT. Generale de Banque SA <GENB.BR> and <Heller Overseas Corp> of Chicago have each taken 50 pct stakes in factoring company SA Belgo-Factors, Generale de Banque said in a statement. It gave no financial details of the transaction. SA Belgo-Factors' turnover in 1986 was 17.5 billion Belgian francs.  
COOPER <CBE> ASKS FTC TO END ACQUISITION LIMITS. Cooper Industries Inc asked the Federal Trade Commission to vacate a 1979 order that requires the company to get FTC approval before making certain acquisitions, the FTC said. The order was issued as part of a settlement of FTC charges that Cooper's merger with Gardner-Denver Co would lessen competion and increase concentration in the gas compressor and industrial air tool industries, the FTC said. The order requires that, until 1989, Cooper must get FTC approval before acquiring companies in the natural gas compressor or hand-held industrial pneumatic tool businesses.  
FTC EASES ALLIED-SIGNAL <ALD> UNIT RESTRICTIONS. The Federal Trade Commission said it eased a requirement that Allied-Signal Inc's Allied Corp subsidiary get prior FTC approval before making certain acquisitions in the high-purity acid market. The FTC said it ended the prior approval requirement because Allied no longer has businesses covered by the order. Other restrictions still apply, it said. The restrcitions stem from a 1983 order by the FTC settling charges that Allied's 1981 acquisition of Fisher Scientific Co reduced competition in three high-purity acid markets.  
UNIVERSAL RESOURCES <UVR>HOLDERS APPROVE MERGER. Universal Resources Corp said its shareholders approved the merger of the company with Questar Corp <STR>. Separately, Universal said it will redeem its 15.75 pct debentures due December 15, 1996, on April 19, at 104.8 pct of face amount plus accrued interest. Universal said it will operate as a wholly owned unit of Questar under its current name. Under terms of the merger, which took effective today, Universal said its shareholders will receive three dlrs a share in cash. It said its stock will no longer trade on the AMEX.  
ARMSTRONG WORLD <ACK> UNIT BUYS PLANT. Armstrong World Industries Inc said its Gilliam Furniture affiliate has purchased a 130,000 square foot building in Troutman, N.C., for undisclosed terms. It said the new plant is expected to be in operation before year-end and and will more than double Gilliam's production capacity for upholstered furniture.  
COOK UNITED INC IN TALKS TO SELL STAKE TO PRIVATE INVESTORS.  COOK UNITED INC IN TALKS TO SELL STAKE TO PRIVATE INVESTORS  
AMERICAN CABLESYSTEMS <ACN> TO BUY CABLE SYSTEM. American Cablesystems Corp said it agreed in principal to buy a cable television system in Los Angeles County from Heritage Communications Inc <HCI> for 15.5 mln dlrs. The company said the system being purchased serves about 12,000 subscribers in the towns of Compton, South El Monte, Hawaiian Gardens and the communities of Willowbrook, Athens, Firestone, Florence and East Compton. It said the acquisition will bring to seven the number of cable systems it owns, manages or has agreed to buy in the Los Angeles area.  
CHEMLAWN <CHEM> HAS NO COMMENT ON NEW OFFER. ChemLawn Corp said it had no comment on a sweetened offer from Waste Management Inc <WMX>. Waste Management amended its 27 dlr per share tender offer, raising it to 35 dlrs per share. ChemLawn had rejected Waste Management's earlier 27 dlr per share offer, saying it was an undervalued bid. ChemLawn earlier told its shareholders not to tender to Waste Management. ChemLawn rose 1-7/8 to 36 in over-the-counter trading.  
MOUNTAIN VIEW ACQUIRES MARATECH COMMUNICATIONS. (Mountain View Investment Corp), Phoenix, Ariz., said it acquired Maratech Communications Cos Inc. Under terms of the transaction, the present directors of Mountain View have resigned and have elected directors of Maratech as new directors of Mountain View. It said a combined shareholders' meeting will soon be held to vote on the acquisition.  
CHARTER-CRELLIN <CRTR> TO ACQUIRE SEBRO PLASTICS. Charter-Crellin Inc said it signed a letter of intent to acquire all outstanding shares of <Sebro Plastics Inc's> capital stock. Charter-Crellin, a molded plastic product maker, said Sebro is a precision molder of engineered specialty plastic products for the automotive industry. The company said the deal is subject to the execution of a definitive purchase agreement.  
NEW YORK STATE ELECTRIC <NGE> ENDS ACQUISITION. New York State Electric and Gas Corp said it has terminated its effort to acquire Corning Natural Gas Corp. It cited as reasons the uncertain regulatory climate in New York State and the depresed price of New York State Electric stock which has been caused by the delay in the Nine Mile Point Unit Two nuclear plant. The company had said in December that it had been interested in acquiring Corning Natural Gas.  
BLACK HAWK MINING CAN'T EXPLAIN STOCK RISE. <Black Hawk Mining Inc> said it knows of "no major activities" to account for the recent rise in the company's stock price. The shares rose 11 cts to 88 cts on the Toronto Stock Exchange yesterday. The company added that its application for its proposed acquisition of <Platinova Resources Ltd> and financings are still before the listing committee of the stock exchange.  
SENATOR WANTS STRONGER AIR MERGER REGULATION. The chairman of the Senate antitrust subcommittee said the Transportation Department was allowing too many airline mergers and proposed its authority be transfered to the Justice Department. "The Transportation Department's antitrust enforcement has been disastrous, permitting rampant merger mania," Ohio Democrat Howard Metzenbaum said in a statement. "The nine largest airlines now control 94 per cent of the market. That's bad for competition and bad for the consumer," he said. Metzenbaum said he introduced a bill to transfer antitrust authority over airline mergers to the Justice Department in hopes it would more restrictive than the Transportation Department.  
FIRST FINANCIAL <FFMC> ACQUIRES TEL-A-DATA. First Financial Management Corp said it acquired the data processing contracts and certain related assets of Tel-A-Data L.P. for about 5.7 mln dlrs cash plus the assumption of certain liabilities of about 2.5 mln dlrs. Tel-A-Data serves about 50 bank and thrift institutions through a processing center in Lombard, Illinois. First Financial offers data processing services to over 800 financial institutions through 35 data processing centers.  
COMMERCIAL CREDIT <CCC> UNIT SELLS DIVISION. Commercial Credit Co said its American Health and Life Insurance Co sold its ordinary life insurance business to American National Insurance Co <ANAT>. American National will assume the business no later than August 31, 1987, Commercial Credit said. The sale is part of a restructuring program begun by Commercial Credit's subsidiary in late 1986, the company said.  
DELTA SAYS COURT ORDER WILL NOT DELAY MERGER. Delta Air Lines <DAL> said a court order requiring Western Air Lines <WAL> to arbitrate with two of its unions will not delay the April 1 merger between the two airlines. The order, which was issued by the Ninth Circuit Court of Appeals, requires Western to discuss with its two unions whether Western's labor contracts will be binding for Delta, Delta said. "Nevertheless, the court order could cause significant personnel problems, including the possible delay of wage increases Delta had planned to give the Western personnel on April 1," Ronald Allen, Delta's president, said. Delta said it feels the court has erred and should reconsider the order.  
INTEGRATED GENERICS <IGN> MAY SELL 10 PCT OF UNIT. Integrated Generics Inc said it is discussing with an unnamed pharmaceutical distributor the sale of 10 pct of its A.N.D.A. Development Corp subsidiary for 200,000 dlrs. Integrated said its subsidiary, Biopharmaceutics, is negotiating with the same unnamed distributor to sell it five prescription drugs. The company said it can release no other details at this time.  
ICN PHARMACEUTICALS <ICN> SEEKING ACQUISITION. ICN Pharmaceuticals Inc  has about 500 mln dlrs in cash and another 1.50 billion dlrs in available credit, which it intends to use to buy a pharmaceutical company, Chairman Milan Panic said. At the company's annual meeting, he said an acquisition could take place in the next 24 months. "The company has nearly two billion dlrs available for acquisition today," Panic said, adding, "We are investigating a number of companies." One company being studied could possibly be acquired on a friendly basis, he said. Panic also said he intends to seek board approval today to repurchase up to three mln ICN common shares. Discussing the possibility of an acquisition, Panic said the such a purchase is necessary because ICN's current marketing capability would not be sufficient to support distribution of the company's products, given ICN's expectations for market growth worldwide. ICN's principal product is ribavirin, also known as Virazole. The drug is marketed in a number of countries and described as a broad-based anti-viral. The company has said its possible applications include treatment of some types of hepatitis, herpes, influenza, childhood diseases and hemorrhagic fevers. ICN has been the focus of consirable investor attention in recent months because of Virazole, which has undergone clinical trials as a possible treatment of some AIDS-related diseases. Panic said today he would not discuss the drug with regard to AIDS until the Food and Drug Administration completes its review of data submitted by the company. He said an investigation of the drug being conducted by a House Subcommittee is continuing. The subcommittee and the FDA have acknowledged they are conducting separate investigations to determine whether or not ICN witheld data from the FDA on adverse reactions to the drug. Virazole is approved for marketing in the U.S. in aerosol form as a treatment for an infection that strikes infants, called respiratory syncytial virus.  
CLARK EQUIPMENT <CKL> BUYS 1.3 MLN SHARES. Clark Equipment Co said it has purchased 1,339,000 shares of its common stock from an investor group led by Arthur M. Goldberg for 26.375 dlrs a share. It said the purchase reduces the number of shares of Clark common stock to be purchased under its stock repurchase plan announced March 10. At the time the company said it would buy back 3.0 mln shares, or 16 pct of the outstanding stock. Clark Equipment also said the investor group agreed to enter into a standstill agreement which prohibits members of the group from purchasing shares of voting securities of Clark for 10 years.  
YANKEE COS <YNK> UNIT TO SELL ASSSETS. Yankee Cos Inc's Eskey Inc <ESK> subsidiary said it reached an agreement in principle to sell its Eskey's Yale E. Key Inc subsidiary to a new concern formed by Key's management and a private investor for about 15.5 mln dlrs. As part of sale, Eskey said the buyers will assume the 14.5 mln dlrs of publicly held Eskey 10-3/4 pct debentures due 2003. It said the debentures will continue to be converted into Yankee preferred. The remainder of the price will be a one mln dlr note to Eskey. Yankee said the sale will result in a loss of 1.5 mln dlrs.  
WENDY'S <WEN> DECLNES COMMENT ON MARKET RUMORS. Wendy's International Inc declined to comment on vague rumors by traders that it might be a takeover target. Wendy's is currently trading up one at 11-3/4 on turnover of more than 1.6 mln shares. A Wendy's spokesman said it was corporate policy not to comment on market rumors. He further declined to attribute active trading in Wendy's stock to a published report which stated Wall Street professionals believe that Wendy's was possibly being studied by Coca Cola Co (KO) with view to a possible acquisition.  
GOODY <GOOD> TO SELL UNIT TO UNION CAMP <UCC>. Goody Products Inc said it entered into an agreement to sell its J. and P.B. Myers packaging business to Union Camp Corp to focus on its consumer products and automated distribution system businesses. Terms of the agreement were not disclosed.  
CHAMPION PARTS<CREB> ASKS DECLARATORY JUDGMENT. Champion Parts Rebuilders Inc said it asked the Federal District Court in Chicago for a declaratory judgment upholding its recent 5.4 mln dlr sale of common shares and warrants to Echlin Inc <ECH>. Champion said in hearings Thursday morning before the federal judge on its lawsuit charging federal securities law violations against Cormier Corp, Odilon Cormier, Morris Navon and other defendants, the Cormier-Navon defendants indicated they would challenge the transaction. Champion's suit claims that various Champion investors alligned themselves with Cormier and Navon who failed to disclose properly under federal laws that they were acting in concert and they intended to spin off parts of the company and sell the balance within two years once they got control.  
CYACQ RAISES OFFER FOR CYCLOPS TO 92.50 DLRS/SHARE FROM 80 DLRS.  CYACQ RAISES OFFER FOR CYCLOPS TO 92.50 DLRS/SHARE FROM 80 DLRS  
AUDIO/VIDEO <AVA>SWEETENS BID FOR CYCLOPS <CYL>. An investment group led by Audio/Video Affiliates Inc said it raised its tender offer to acquire Cyclops Corp to 92.50 dlrs a share from 80 dlrs a share. The group, Cyacq Acquisition Corp, also said it extended the offer until April three, from March 20. The group said it added several conditions to its offer, including receipt of all non-public information about Cyclops that was provided to <Dixons Group PLC> in connection with Dixon's competing tender offer for Cyclops. Cyacq's sweetened offer, totaling about 398 mln dlrs, tops Dixon's offer of 92.25 dlrs a share, or about 388 mln dlrs. On Wednesday Dixon said it had bought 54 pct of Cyclops' 4.3 mln shares outstanding, boosting its stake in the company to 56 pct. Earlier today, however, the Securities and Exchange Commisssion ordered Dixons to extended its tender offer until March 24. Cyacq said it hopes Cyclops shareholders "will withdraw previously tendered shares from Dixons' tender offer to take advantage of Cyacq's higher offer." The SEC's order came after Cyacq filed suit to block Dixons from taking control of Cyclops and to force an extension of Dixons' tender offer. A Cyclops spokeswoman said the company had no immediate comment on the sweetened bid from Cyacq. Cyacq said its new offer is also subject to Cyclops rescinding any agreements with Dixons under which the U.K.-based firm would receive "break-up fees" or expenses from Cyclops or could buy Cyclops common stock from the Pittsburgh-based company.  
JEFFERIES MAKES MARKET IN CYCLOPS <CYL>. Jefferies and Co said it is making a market in the stock of Cyclops Corp at 92-1/2 to 95. Cyclops received a sweetened offer of 92.50 dlrs per share from Cyacq Acquisition Corp, led by Audio/Video Affiliates Inc <AVA>.  
BEI <BEIH> ACQUIRES IVEY-ROWTON AND ASSOCIATES. BEI Holdings Ltd said it acquired Ivey-Rowton and Associates, a Nashville, Tenn.-based bank marketing firm. Terms were not disclosed.  
FIRM SELLS ENTIRE ALLEGHENY INT'L <AG> STAKE. Southeastern Asset Management Inc and its two controlling shareholders said they sold their entire 5.6 pct stake in Allegheny International Inc. In a filing with the Securities and Exchange Commission, Southeastern, a Memphis, Tenn. investment advisor, said it sold the entire 604,000-share stake between March 13 and 16 at prices ranging from 24.25 to 24.625 dlrs each.  
JAPANESE FIRM HAS 10.7 PCT OF SHELDAUL <SHEL>. Sumitomo Bakelite Co Ltd, a Japanese company, told the Securities and Exchange Commission it has acquired 325,000 shares of Sheldahl Inc, or 10.7 pct of the total outstanding common stock. Sumitomo Bakelite said it bought the stock for 4.9 mln dlrs for investment purposes. Under an between Sumitomo Bakelite and Sheldahl, as long as its stake is more than five pct, Sumitomo said it has preemptive rights for 60 days following notice of issuance of new Sheldahl common stock. As long as its stake is over 10 pct, it said it is entitled to Sheldahl board representation.  
JOHN HANCOCK UNITS DUMP STAKE IN PRICE <PR>. Subsidiaries of John Hancock Mutual Life Insurance Co told the Securities and Exchange Commission they sold their entire 13.1 pct stake in Price Communications Corp back to the company. The Hancock subsidiaries said they sold their entire 1,627,603-share stake in Price Communications to the company for 11 dlrs a share on Feb 23.  
CHEMLAWN CORP, ECHOLAB INC SIGN DEFINITIVE MERGER AGREEMENT.  CHEMLAWN CORP, ECHOLAB INC SIGN DEFINITIVE MERGER AGREEMENT  
CHEMLAWN <CHEM>, ECOLAB <ECON> IN MERGER PACT. Chemlawn Corp and Ecolab Inc said they signed a definitive merger agreement under which Ecolab will buy all outstanding Chemlawn common stock for 36.50 dlrs a share in cash, for a total of about 370 mln dlrs. Under terms of the agreement, Chemlawn said it rescinded its previously announced rights dividend plan. Chemlawn previously rejected a 27 dlr a share offer from Waste Management Inc <WMX>. Yesterday, the Oak Brook, Ill.-based waste disposal company said it was prepared to offer 33 dlrs a share, or about 330 mln dlrs, for Chemlawn, a lawn-care company. Chemlawn had said last week that it was negotiating with other possible suitors, which it did not identify. A Chemlawn spokesman said further details on the merger would be issued later. Ecolab is a maker of commercial laundry detergent based in St. Paul, Minn. For its first six months ended December 31, the company earned 20.4 mln dlrs, or 76 cts a share, on sales of 421.8 mln dlrs. Officials at Waste Management could not be reached for immediate comment.  
INVESTMENT FIRM HAS 7.1 PCT OF CYCLOPS <CYL<. Halcyon Investments, a New York risk arbitrage and securities dealing partnership, told the Securities and Exchange Commission it has acquired 288,000 shares of Cyclops Corp, or 7.1 pct of the total outstanding. Halcyon said it bought the stake for 26.1 mln dlrs as part of its ordinary risk arbitrage and securities trading business. Other than that, the firm said there was no specific purpose in its purchases. Halcyon said it might buy more stock or sell some or all of its current stake. It said it bought the bulk of its stake between Feb 6 and March 13.  
CHRYSLER'S <C> CREDIT CANADA PLACED ON CREDITWATCH. Canadian Bond Rating Service said it placed Chrysler Credit Canada Ltd, a subsidiary of Chrysler Corp <C>, on creditwatch until all financial details concerning the proposed acquisition of American Motors Corp <AMO> are finalized. The creditwatch affects Chrysler Credit Canada's short term notes, guaranteed notes, debentures and the recently completed 75 mln dlr 9.25 Eurobond issue due April 15, 1993. Canadian Bond Rating Service said that, based on facts currently available on the proposed transaction, it does not anticipate the necessity of a downgrade. Canadian Bond Rating Service said Chrysler Credit Canada short term notes are now rated A-2 (high) and guaranteed notes and debentures are rated B plus plus (high).  
ROGERS <ROG> ADOPTS RIGHTS PLAN. Rogers Corp said its board approved a shareholder rights plan designed to protect its shareholders in the event of an attempted hostile takeover. Rogers said the plan is not being adopted in response to any specific takeover attempt. Under the plan, shareholders may buy one share of common stock at 65 dlrs for each share held. The rights will be exercisable only if a person or group acquires 20 pct or more of Rogers' shares or announces an offer for 30 pct or more. The dividend distribution will be made March 30 to holders or record on that date.  
AMERICAN EXPRESS <AXP> TO DISCUSS SHEARSON DEAL. American Express Co's board of directors Monday will discuss the company's arrangement to sell 13 pct of Shearson Lehman Brothers Inc to Nippon Life Insurance Co, a company spokesman said. The spokesman would not say whether the board is planning to vote on the understanding between American Express and Nippon Life. The Shearson stake is to be sold for 530 mln dlrs, American Express has said. The spokesman also would not comment on speculation that the board was to discuss a sale of securities to the public. Monday's board meeting is a regular monthly meeting. The plan to sell part of Shearson to Nippon Life must be approved by the American Express board and Japan's Ministry of Finance. Earlier, American Express and Shearson said they were subpoenaed by the Securities and Exchange Commission. American Express said it was subpoenaed for documents pertaining to securities transactions of American Express and Fireman's Fund. Shearson was subpoenaed for documents related to transactions with Jefferies and Co and others. The American Express spokesman said he could not comment on whether any officials of the firm were subpoenaed.  
AUSTRALIAN OFFER FOR SAN MIGUEL SHARES. Diversified investment company, <Ariadne Australia Ltd>, has offered 3.8 billion pesos for 38 mln shares in the Philippine brewing firm <San Miguel>, a Manila newspaper reported. The Sunday Times quoted a letter sent yesterday to President Corazon Aquino from Ariadne's chairman, New Zealander Bruce Judge, that he was offering cash equivalent to five pct of the nation's yearly budget to buy the shares from the government. The presidential office and Ariadne representatives in Manila were not available for comment on the report. The shares are the entire block seized by the government from the United Coconut Planters Bank (UCPB) on suspicion that the real owner was Eduardo Cojuangco, the former chairman of San Miguel and UCPB and a close associate of deposed president Ferdinand Marcos. The 38 mln shares consist of 24 mln class A stock and 14 mln class B shares. Government officials have said earlier that the more valuable class A shares would not be sold to foreigners. The offer values each share at 100 pesos -- the price at which the Philippine Social Security System suggested it might buy eight mln class A shares last week. "Judge's offer of 3.8 billion pesos is about five pct of the Philippines' yearly budget," Ariadne's Philippine agent Domingo Panganiban was quoted as telling reporters yesterday. "Mr Judge's objective in this investment is to make his corporation's management expertise available to San Miguel so that the company's assets can be fully utilised." San Miguel, the country's largest brewer, is also one of the major manufacturers of grocery lines. Panganiban is quoted as saying that San Miguel could tap food and liquor distribution lines in Australia, Britain, the U.S., New Zealand and Hong Kong through <Barwon Farmlands Ltd>, a listed Australian firm in which it has 30 pct equity. Ariadne, with about one billion dlrs in assets and turnover of about two billion, has interests also in mining, real estate and agricultural products.  
AUSTRALIAN PLANS PHILIPPINE BRANCH FOR TAKEOVER. The Australia based <Ariadne Australia Ltd>, plans to set up a branch in the Philippines to fulfill a prerequisite for the takeover of the Philippine brewing firm, <San Miguel Corp>, a Hong Kong newspaper said. The Hong Kong Economic Journal quoted a spokesman of Australian stock broker Jacksons Ltd as saying that <Barwon Farmlands Ltd>, a listed Australian firm of which Ariadne owns a 30 pct stake, is planning a branch in the Philippines. He added Jacksons is arranging an offer by Barwon to pay a total 3.8 billion pesos in cash for 38 mln San Miguel shares. Barwon is offering 100 pesos each for 24 mln class A San Miguel shares and 14 mln class B stock. But the Jacksons spokesman noted that the more valuable A stock would only be sold to Filipinos or companies registered in the Philippines. He said Barwon has approached the Philippine government which seized the block of shares from the United Coconut Planters Bank, which is believed to be linked with the country's deposed President Ferdinand Marcos. He added he expects a deal to be concluded between Barwon and the Philippine Government in 14 days as it is the only offer in cash, the newspaper reported. Hong Kong Economic Journal also noted stock market rumours that <Neptunia Corp>, a Hong Kong registered company which controlled by San Miguel's president Andres Soriano, is the other party keen on the block of San Miguel shares. The Philippine's Commission on Good Government ruled last May against a move of Neptunia to acquire 33 mln San Miguel shares controlled by the brewery firm's former chairman Eduardo Cojuangco, who is also chairman of United Coconut. Commissioner Ramon Diaz said at the time the government would not allow a subsidiary to buy into a parent firm, adding San Miguel could have offered the shares to other parties. The Manila newspaper Sunday Times published a letter sent yesterday to President Corazon Aquino from Ariadne's chairman, New Zealander Bruce Judge, that he was offering cash equivalent to five pct of the nation's yearly budget to buy the shares from the government. "Judge's offer of 3.8 billion pesos is about five pct of the Philippines' yearly budget," Ariadne's Philippine agent Domingo Panganiban was quoted as telling reporters yesterday. Spokesmen of Ariadne, Jacksons and Neptunia were not available for comment, nor any officials of the Philippines. <San Miguel Brewery Ltd>, a Hong Kong listed company which is 69.65 pct held by Neptunia on behalf of San Miguel Corp, closed 40 cents higher at 15.50 H.K. Dlrs on Friday.  
DART GROUP FLEXIBLE ON SUPERMARKETS <SGL> BID. <Dart Group Corp> said it told Supermarkets General Corp <SGL> it was flexible on the price it would pay to acquire the company. Dart has said it would offer 41.75 dlrs cash for each SGL share if the SGL board recommended the offer to shareholders. SGL has termed the 1.62 billion dlr offer unsolicited. In a letter to SGL dated March 20, Dart also said it was denied confidential information on SGL that would be given to other potential bidders. SGL officials could not be reached for comment. Dart said it was advised that a selling brochure for the sale of SGL had been distributed to about 20 potential buyers, but not itself. These purchasers would also be given access to SGL's books and records and the opportunity to talk with key employees. "We suspect that one or more of the 20 are leveraged buyout firms," said a source close to Dart. Analysts have said SGL management may be considering a leveraged buyout. Dart said it remains interested in acquiring SGL on a friendly basis and reiterated its willingness to negotiate all the terms of its offer. Dart said SGL representatives said the company has not received any other offer. It said it requested the confidential information to better understand SGL, but was denied this because it refused to sign an agreement prohibiting it from making a bid for SGL without SGL's approval. The agreement would also have limited its ability to buy SGL shares, Dart said. It considered those conditions unreasonable in the interest of trying to negotiate a friendly transaction, it said. Dart has just under five pct of SGL shares. Dart said it requested the information before its meeting with SGL representatives, but held the meetings in the hope representatives would reach an agreement. It said it indicated it was flexible on price, but was told there were certain issues important to SGL management and while they were not conditions to the deal, Dart was expected to take them into account in putting together its package. It said the issues include an immediate payment of 5.7 mln dlrs to SGL chairman Leonard Lieberman, executive vice president James Dougherty and financial officer Murray Levine. Dart said this payment was intended for the three officers' severance agreements, although there was an implication that Lieberman and Dougherty would be leaving the company of their own volition. Dart said under their present agreements, none of these officers have any right to such accelerated payments. Also, Dart said Lieberman, Dougherty and Levine are to be paid 2.6 mln dlrs to pay their taxes. It also said top management's incentive shares were to be accelerated and paid for at a cost of six mln dlrs although there are restrictions on the shares unless waived by the company's compensation committee. Dart said it was to fund up to five mln dlrs for top management's supplemental retirement plan. Dart said another issue was to agree to future severance obligations and future salary guarantees for top management, estimated at more than 15 mln dlrs in excess of obligations under the company's present policy. Dart said despite such management payments, it agreed to discuss all aspects of its offer and in fact did try to negotiate a transaction at the March 18 meeting with SGL. Supermarkets General owns the Path Mark supermarket chain and Rickels home centres. Dart also released a copy of a lawsuit that was being filed by an SGL shareholder, seeking to stop SGL from taking such actions as paying greenmail or enacting a poison pill defence. The suit also sought to have directors carry out their fiduciary duty. Greenmail is the payment at a premium for shares held by an unwanted suitor and a poison pill is typically the issue of securities to shareholders which make a takeover more expensive.  
Bell Resources says it buys 57.6 mln BHP shares, taking holding to 29.93 pct.  Bell Resources says it buys 57.6 mln BHP shares, taking holding to 29.93 pct  
BELL RESOURCES BOOSTS STAKE IN BHP. <Bell Resources Ltd> said it has executed an underwriting agreement with <Equiticorp Tasman Ltd> to acquire 57.6 mln ordinary shares in The Broken Hill Pty Co Ltd <BRKN.S> for 540 mln dlrs. Bell said in a statement that it now holds 29.93 pct of BHP's 1.2 billion shares.  
ARIADNE UNIT CONFIRMS BID FOR SAN MIGUEL. Ariadne group unit <Barwon Farmlands Ltd> confirmed it offered 3.8 billion pesos in cash for the 38 mln shares of Philippine brewing company <San Miguel Corp>. The Australia-based Barwon, 30 pct owned by New Zealander Bruce Judge's Ariadne group, said in a statement released in Hong Kong that a formal offer had been made to the Philippines government, which holds the shares. It said it was confident the offer will be reviewed favourably. Newspapers in Manila and Hong Kong reported at the weekend that an offer had been made. Barwon said it was represented by Australian stockbroker <Jacksons Ltd>, which forwarded a formal offer to Philippine President Corazon Aquino of 100 pesos for each of the 38.1 mln A and B shares of San Miguel. The Philippine government seized the shares, which represent a 31 pct stake in the brewery firm, from the <United Coconut Planters Bank>, alleged by the government to be linked with the country's deposed President Ferdinand Marcos. The Barwon statement said a deal is expected to be concluded between Barwon and the Philippines government in 14 days. Barwon also said it made recommendations to the government on how it could purchase the class A shares, which can only be held by a Philippine national or a firm which is at least 60 pct held by a member of the country. It did not elaborate. The Hong Kong Economical Journal quoted a spokesman of Jacksons as saying Barwon plans to set up a branch in the Philippines to meet the criteria. <San Miguel Brewery Ltd>, a locally listed firm 69.65 pct held by San Miguel's <Neptunia Corp> affiliate, was last traded at 16.30 H.K. Dlrs against 15.50 dlrs on Friday.  
GENERAL PARTNERS IN GENCORP <GY> PROXY FIGHT. General Partners, the group tendering for all GenCorp Inc shares at 100 dlrs each, said it has started soliciting proxies against GenCorp's proposals to increase its number of authorized shares outstanding, create a board with staggered election dates and eliminate cumulative voting. The proposals are to be voted on at the March 31 annual meeting. General Partners, a partnership of privately-held <Wagner and Brown> and AFG Industries Inc <AFG>, made the disclosure in a newspaper advertisement. The partnership has already filed suit in U.S. District Court in Columbus, Ohio, seeking to block a vote on the proposals and to invalidate GenCorp's defensive preferred share purchase rights. General Partners asked shareholders to either vote against the proposals or abstain from voting on them.  
USAIR <U> CUTS PIEDMONT <PIE> SHARES SOUGHT. USAir Group Inc said it has amended its 69 dlr per share tender offer for shares of Piedmont Aviation Inc to reduce the maximum number it will accept to 9,309,394. Previously it had sought all shares. In a newspaper advertisement, USAir said the offer and withdrawal rights have not been extended and will still expire April 3, along with the new proration period. On Friday, the U.S. Department of Transportation approved USAir's acquisition of 51 pct of Piedmont. If USAir were to acquire more than 51 pct in the tender, it would be required to sell the excess within one week. USAir said receipt of the 9,309,394 shares -- which is also the minimum amount it will accept -- would give it a total of about 61 pct of Piedmont shares currently outstanding and 50.1 pct on a fully diluted basis. The company said even if the purchase of the 9,309,394 Piedmont shares caused it to exceed the 51 pct limit, USAir would waive the condition to the offer that the Transportation Department approve a voting trust agreement permitting USAir to buy and hold shares under the offer pending review of USAir's application to gain control of Piedmont, subject to the order not being rescinded or modified in an adverse way.  
<MICROTEL INC> MAKES ACQUISITION. Microtel Inc said it has completed the acquisition of <American Teledata Corp> and its US Dial subsidiary, which provide long distance telephone service in northeast Florida. Terms were not disclosed. Microtel's shareholders include Norfolk Southern Corp <NSC>, M/A-Com Inc <MAI>, Centel Corp <CNT>, Alltel Corp <AT> and E.F. Hutton Group Inc <EFH>.  
AMERICAN VARIETY ACQUISITION PACT TERMINATED. <American Variety International Inc> said its agreement to acquire <First National Entertainment Corp> has been terminated because First National was not able to fulfill terms of the agreement. It said due to protracted negotiations with First National, several American Variety divisions were inoperative in 1986. American Variety said it is reevaluating its record and tape library for possible conversion to compact discs.  
HARPER/ROW <HPR> GETS EXPRESSIONS OF INTEREST. Harper and Row Publishers Inc said its special committee of independent directors has received expressions of interest from a considerable number of domestic and foreign firms with respect to restructuring or acquisition transactions with the company. Winthrop Knowlton, chairman of special committee said "no determination has been made by the full board as to any transaction." He said the special committee and Kidder Peabody and Co Inc intend to engage in discussions with interested parties in an effort to come to a conclusion in the near future. Formation of the special committee was announced early last week when Harper and Row said its board had taken no action on two pending acquisition proposals. At that time, directors also indefinately postponed a planned special shareholders vote on a restructuring proposal which would have created a Class B common with 10 votes a share and limited transferability. The acquisition proposals had come from Theodore L. Cross, owner of about six pct of the company's stock who offered 34 dlrs a share, and Harcourt Brace Jovanovich Inc <HBJ>, which offered 50 dlrs a share.  
FRUIT/LOOM <FTL> TO SELL UNIT FOR 145 MLN DLRS. Fruit of the Loom Inc said it agreed to sell its General Battery Corp subsidiary to Exide Corp for about 145 mln dlrs in cash. The proposed sale will complete Fruit of the Loom's previously announced plan to divest itself of unrelated businesses. Proceeds from the proposed transaction are more than the price projected in the company's recent initial public offering, it said. Completion of the transaction is subject to a definitive agreement, regulatory approvals, financing and certain other conditions and is expected to close May one, 1987, the company said.  
CITYQUEST MAKES 120 MLN STG BID FOR WICKES. <Cityquest Plc>, a newly formed company, is making a recommended 120 mln stg offer for builders merchants and DIY (do-it-yourself) company <Wickes Plc>, Wickes said in a statement. Undertakings to accept what is effectively a management buyout have been accepted by holders of 88.9 pct of the shares. The statement said the offer was due to a decision by Wickes International Corp, a member of the U.S. Wickes Companies <WIX.A> Inc group, which holds an 80.5 pct stake, to realise much of its investment. The offer would enable Wickes to become fully independent and once the bid succeeded all the Wickes directors would become members of the Cityquest board. The offer will be of 345p cash for every Wickes share. Wickes was last quoted at 345p compared with 275p at Friday's close. Wickes shareholders will also have the option of taking one Cityquest share or 205p in loan notes for every 205p of the cash consideration. Henry Sweetbaum is chairman and chief executive of both Cityquest and Wickes, and it was intended that Cityquest's name would be changed to Wickes in due course. Wickes came to the U.K. Unlisted Securities Market in January, 1986 with a capitalisation of about 96 mln stg. Cityquest has a fully paid share capital of one mln stg. S G Warburg Securities has organised commitments from a group of investors to subscribe for 65 mln stg in shares and 28.2 mln stg in subordinated convertible loan stock. Lead investor is Investors in Industry Plc Cityquest also has loan facilities of 30 mln stg.  
ALCO STANDARD <ASN> COMPLETES ACQUISITION. Delta Business Systems Inc said it has completed a previously-announced merger into Alco Standard Corp. Delta said it expects sales of about 30 mln dlrs for the year ending in April.  
ANACOMP <AAC> GETS FUNDS TO BUY DATAGRAPHIX. Anacomp Inc said it finalized the financing of its 128 mln dlrs purchase of DatagraphiX Inc from General Dynamics Corp <GD>. The financing, arranged by Drexel Burnham Lambert, consists of 90 mln dlrs of bank financing, the private placement of 71 mln dlrs of senior subordinated notes and 25 mln dlrs of convertible preferred stock, it said. DatagraphiX, a manufacturer of microgrpahics equipment has been merged into Anacomp and will be operated as a separate division, Anacomp said.  The division is expected to improve results for Anacomp this year.  
ENERGY FACTORS <EFAC> TO BUY ALLIED <ALD> UNITS. Energy Factors Inc said it has signed an agreement to acquire GWF Power Systems Co and Combustion Power Co Inc from Allied-Signal Inc for undisclosed terms. The two Allied units operate and are developing cogeneration projects and small petroleum-coke fueled power plants.  
PATRICK PETROLUEM HAS DEFINITIVE ACCORD TO BUY BAYOU RESOURCES.  PATRICK PETROLUEM HAS DEFINITIVE ACCORD TO BUY BAYOU RESOURCES  
SAFEGUARD SCIENTIFIC <SFE> UNIT BUYS SUBSIDIARY. Safeguard Scientific Inc said its subsidiary, Coherent Communications Systems Corp, purchased a telecommunications equipment business for an undisclosed amount of cash, notes and Coherent common stock. Safeguard said it bought the business unit from Comsat TeleSystems Inc, a subsidiary of Communications Satellite Corp <CQ>.  
IC INDS <ICX> TO SELL CERTAIN ASSETS TO MLX. IC Industries Inc said its Abex Corp subsidiary agreed to sell its sintered friction materials business in Italy to Troy, Michigan-based MLX Corp, for undisclosed terms.  Completion of the proposed transaction is subject to approval by the Italian government, it said.  
DELOITTE HASKINS SELLS GETS STAKE IN COMPANY. <Deloitte Haskins and Sells>, an accounting and consulting firm, said it bought a stake in <Holland Systems Corp>, a software and services company. The company also said it set up a venture with Holland Systems to develop and market an integrated line of information management products and services. It said products from the venture are expected to be introduced within the next year.  
INVESTOR ACQUIRES 9.9 PCT OF MUNFORD <MFD>. A joint venture controlled by Dallas investor Bradbury Dyer said it had acquired 377,000 shares, or 9.9 pct, of the common stock of Munford Inc. In a filing with the Securities and Exchange Commission, the concern, which comprises Paragon Associates and Paragon Associates II, said it bought the stake for 7,659,000 dlrs and may buy more shares. Paragon said it bought the shares for investment purposes.  
AMERICAN TELEVISION <ATCMA> BUYS TIME <TL> UNIT. American Television and Communications Corp said it has completed the acquisition of Manhattan Cable Television Inc from Time Inc for about 9,400,000 Class B common shares. American Television was spun off from Time in August 1986. The company said following this transaction, Time now owns 82 pct of American Television.  
DWG <DWG> COMPLETES SALE OF UNIT. DWG Corp said it has completed the previously-announced sale of its Texsun Corp subsidiary to Texsun Corp subsidiary to Sundor Brands Inc for 27.5 mln dlrs and the assumption of liabilities. It said proceeds have been placed in escrow pending the outcome of talks with lenders.  
ALLIED <ASU> SELLING MICHIGAN UNITS. Allied Supermarkets Inc said it entered into a definitive agreement to sell its Michigan operations for about 46 mln dlrs in cash and debt plus assumption of substantially all of Allied's liabilities other than senior subordinated debentures. It said the operations will be sold to Meadowdale Foods Inc, a corporation formed by members of its existing management, including Chairman David Page and President Lon Makanoff. The transaction is conditioned on  Allied's pending merger with the Vons Cos Inc.  
KLM SAYS IT IS NOT SEEKING AIR ATLANTA STAKE. KLM Royal Dutch Airlines <KLM.AS> is discussing marketing cooperation with U.S. regional carrier Air Atlanta Inc but it is not seeking to take a stake in the airline, a KLM spokesman said. "We're not considering taking either a majority or minority stake in Air Atlanta, but we are thinking of providing them with a loan," the spokesman told Reuters in a comment on a Wall Street Journal report saying debt-laden Air Atlanta could sell as much as 25 pct of its stock to the Dutch airline. KLM last week denied a Dutch press report saying it was discussing a takeover of Air Atlanta. The KLM spokesman said Air Atlanta's regional route network, centred on Atlanta, Ga, could serve as a feeder to KLM's international network, which includes direct flights between Atlanta and Amsterdam. KLM and Air Atlanta had been talking "for some time," he said, but declined to elaborate further on the talks or give details of the loan to Air Atlanta.  
GENCORP SUES GENERAL PARTNERS. Gencorp Inc said it filed suit against the unsolicited 100 dlr-a-share tender offer of Wagner and Brown and AFG INdustries. Gencorp said it is seeking an injunction against the offer because it is violates federal securities laws and margin regulations. Gencorp also said its board is carefully studying the offer and will make a decision on whether or not shareholders should accept or reject it by March 31.  
PRINCIPAL NEO-TECH SELLS UNIT. <Principal Neo-Tech Inc> said it completed the sale of its subsidiary, Neo-Tech Inc, to Seismic Holdings Inc and Energy Holdings Inc, of Denver, Colo. As part of the price, Principal Neo-Tech received notes and preferred shares of Energy Holdings. However, terms were not disclosed.  
CHARTER FEDERAL, JEFFERSON SAVINGS AGREE TO MERGE.  CHARTER FEDERAL, JEFFERSON SAVINGS AGREE TO MERGE  
PHH <PHH> BUYS TWO DESIGN FIRMS. PHH Group Inc said it acquired two design firms for undisclosed terms. In 1986, the two firms, Neville Lewis Associates of New York and Walker Associates Inc of L.A., produced 15.6 mln dlrs in total fees.  
CHARTER FEDERAL <CHFD>, JEFFERSON TO MERGE. Charter Federal Savings and Loan Association of Bristol, Va., said it has agreed to acquire Jefferson Savings and Loan Association of Warrenton, Va. Under terms of the transaction, which would result in a 1.3 billion dlr thrift institution, stockholders of Jefferson will get 30.50 dlrs per share, half in cash and half in shares of Charter. The resulting association will operate under the name of Charter and will be based in Bristol. The transaction is valued at about 16.3 mln dlrs, a Jefferson spokesman said. Charter said the merger is subject to approval of the Federal Home Loan Bank Board. Jefferson reported a 1.5 mln dlrs loss and assets of 360 mln dlrs for the year ended September 30, 1986. For the year ended June 30, Charter reported net income of 7.9 mln dlrs. Assets totaled about 844.0 mln dlrs as of December 31.  
COCA COLA SPOKESMAN SAID RUMORS COKE SEEKING TAKEOVER OF WENDY'S ARE NOT CORRECT.  COCA COLA SPOKESMAN SAID RUMORS COKE SEEKING TAKEOVER OF WENDY'S ARE NOT CORRECT  
COCA COLA <KO> SAYS RUMORS INCORRECT. A Coca Cola Co spokesman said rumors the company is interested in acquiring Wendy's International <WEN> are not true. "Those rumors are not correct," said Carlton Curtis, an assistant vice president at Coke. "We have stated many times that Coca Cola Co has no interest in an acquisition in the food service industry and thereby becoming a competitor to our food service customers." Wendy's stock has been flying high on the rumors for two days. Today, Wendy's hit a high of 13-3/8 before dropping back to 12-3/8, up 5/8 in heavy trading.  
ALLEGHENY <AI> SUED OVER PROPOSED BUYOUT. Allegheny International Inc said it and First Boston Inc's <FBC> Sunter Holdings Corp subsidiary have been named as defendants in a class action filed in the Court of Common Pleas for Allegheny County, Pa., which seeks an injunction against Allegheny's proposed merger into Sunter. The company said its board and some former directors and First Boston were also named as defendants. It said it and Sunter intend to vigorously oppose the action. Allegheny said the class action suit alleges the price to be paid in the transaction is grossly unfair. The company said the suit's allegations are similar to those contained in an earlier federal court suit.  
TWO U.S. BANCORP <USBC> UNITS MERGE. U.S. Bancorp's Pacific State Bank of Lincoln City said it plans to merge with U.S. Bancorp's U.S. National Bank of Oregon. Under the pact, Pacific State will become part of the U.S. Bank branch system. The company said the merger is expected to be completed after mid-year, following regulatory approval. All local staff and management will remain the same, it said.  
MTS ACQUISITION HAS NEGLIGIBLE NUMBER OF CAESARS WORLD SHARES.  MTS ACQUISITION HAS NEGLIGIBLE NUMBER OF CAESARS WORLD SHARES  
WOLVERINE <WWW> TO SELL TWO SUBSIDIARIES. Wolverine World Wide Inc said it signed a letter of intent to sell to an investment group two subsidiaries, Kaepa Inc, an athletic footwear maker, and its international marketing arm, Kara International Inc. Terms were not disclosed. Wolverine said the action continues the restructuring operation begun last July to make the company more competitive and profitable. Wolverine said it will concentrate its effort in the athletic footwear market in its Brooks footwear division. Wolverine said it expects "favorable results in the second half as a result" of its restructuring. In 1986 it said restructuring helped improve its financial capabilities. The company reported a 12.6 mln dlr loss, or 1.75 dlrs a share, in 1986 due largely to a 9.0 mln dlr restructuring charge and a 4.0 mln dlr inventory evaluation readjustment taken in the second quarter. Since that time, it has sold two small retail operations, closed and consolidated five domestic footwear factories and closed about 15 retail locations.  
PACIFICARE <PHSY> IN TALKS TO ACQUIRE HMO. PacifiCare Health Systems Inc said it is in negotiations to acquire Capital Health Care, a 40,000 member health maintenance organization servicing Salem and Corvallis, Ore. The company said it will not disclose terms or other details of the acquisition until negotiations are completed.  
MTS ACQUISITION HAD TALKS WITH PRATT HOTEL, SOUTHMARK ON CAESARS WORLD PURCHASE.  MTS ACQUISITION HAD TALKS WITH PRATT HOTEL, SOUTHMARK ON CAESARS WORLD PURCHASE  
SOSNOFF HAS SMALL NUMBER OF CAESARS <CAW> SHARES. Martin T. Sosnoff said his <MTS Acquisition Corp> to date has received only a "negligible" number of Caesars World Inc shares in response to its 28-dlr- per-share tender offer for all shares. Sosnoff also said he has held preliminary talks with Pratt Hotel Corp <PRAT> and Southmark Corp <SM> on forming a joint venture to enter into talks to acquire Caesars in a friendly transaction in which Sosnoff would have a 50 pct interest and Pratt and Southmark the remainder. Sosnoff said the talks with Pratt and Southmark are not being actively pursued at the presentand may or may not be continued in the future.  He said there could be no assurance that a joint venture would be formed or that Caesars would agreed to talks.  "Several preliminary contacts with representatives of Caesars have not resulted in any indication that it wishes to enter into such negotiations," Sosnoff said. He said based on talks with staff members of gaming authorities, there can be no assurance that the necessary regulatory review of its bid for Caesars World can be completed by the original April Three expiration date. Sosnoff said it has extended the tender until May 15.  The bid remains subject to regulatory approvals and the arrangement of financing. Pratt, which owns the Sands Hotel and Casino in Atlantic City, N.J., where Caesars operates the Boardwalk Regency Hotel and Casino, recently waged an apparently unsuccessful campaign to acquire control of Resorts International Inc <RTA> against New York developer Donald Trump.  Southmark owns about 37 pct of Pratt Hotel. Caesars World's boasrd has urged rejection of the offer on the grounds that it is inadequate and has said it would investigate alternative transactions.  Sosnoff currently owns about 13.3 pct of Caesars World.  
TALKING POINT/WENDY'S INTERNATIONAL <WEN>. Takeover speculation buoyed Wendy's International Inc's stock, even after Coca Cola Co took the fizz out of market rumors by denying it was an interested suitor. Wendy's retreated from an earlier high of 13-3/8, and lost a point when Coca Cola <KO> said the rumors were untrue. However, Wendy's remained up 5/8 at 12-3/8 on volume of more than three mln shares. Several analysts were skeptical of the rumors, yet they said they could not conclude a takeover of the fast food restaurant chain was impossible. Wendy's declined comment on takeover rumors of all kinds. Yet, a Wendy's spokesman said the company was aware of a Business Week article, which named Coke as a potential suitor and which market sources said helped ignite the rumor mill. Market sources mentioned Anheuser-Busch Inc <BUD> and Pepsico Inc <PEP> as alternatives to Coke as acquirers. Neither of those companies would comment, nor would the Wendy's official. "It doesn't happen every day, every week, every month, but its not unusual for us to be linked with those companies," said Denny Lynch, Wendy's vice president of communications. However, Lynch would not comment specifically on the current market rumors. Even before Coke denied the rumors, analysts had been skeptical of a takeover since Atlanta-based Coke has stated it views fast food chains as customers and does not want to become a competitor to them. "I can't put another name on it," said Kidder peabody analyst Jay Freedman as vaguer rumors continued to hold up Wendy's stock. "It very well could be someone's interested." But Freedman said he doesn't believe now is the right time for Wendy's to be sold. "They're obviously having operational difficulties. I've always believed at the right price Wendy's would consider (an offer), but I can't believe this is the right price at the right time," Freedman said. "If a transaction takes place, the buyer's going to control the situation," Freedman said. "I just don't think there's anything going on. I don't think it's worth much more than where it is," said Joseph Doyle of Smith Barney. Analysts said Wendy's has suffered largely from the "burger wars" between itself, McDonald's Corp <MCD> and Pillsbury Co's <PSY> Burger King chain. Wendy's, the third largest fast food hamburger chain in the U.S., lost about 11 pct in same store sales last year, analysts said. Wendy's also fumbled when it introduced a high-priced breakfast, which it has since withdrawn, analysts said. Some analysts said the company should be bringing in new products, but it is too soon to predict a significant turnaround. There are analysts, however, who believe Wendy's may be vulnerable to a takeover. James Murren of C.J. Lawrence said Wendy's could be worth 14 to 15 dlrs on a break-up basis. He said the company has improved its debt-to-equity ratio and Wendy's owns a high percent of its own restaurants - 38 pct of 3,500. "They also have some attractive leaseholds on their restaurants," Murren said. Murren said that despite the downturn in sales last year, Wendy's real sales, store for store, turned upwards in the fourth quarter. "That was about the first time in seven quarters," he said. Caroline Levy of E.F. Hutton also believes something could be going on with Wendy's. "My gut feeling is something's going to happen. I don't know what," she said. She estimated a takeover price would be at least 15 dlrs per share. One analyst speculated that Coke became the rumored suitor because Wendy's decided to sell Coke at its fountains instead of Pepsi. Wendy's is currently embroiled in litigation brought by Pepsi, which holds a contract with the company, analysts said. Pepsi's soda is still sold in the Wendy's restaurants.  
BELLSOUTH <BLS> COMPLETES PURCHASE FOR SHARES. BellSouth Corp said it completed its previously-announced agreement to acquire <Dataserv Inc> for an exchange of shares. BellSouth said under the Nov 25, 1986, agreement, it exchanged one of its common shares for every 13.3 Dataserv common shares. The exchange reflects the Feb 23 three-for-two BellSouth stock split, the company said.  
REXHAM <RXH> GETS TAKEOVER OFFER. Rexham Corp, a maker of packaging materials and machinery, said it received an unsolicited offer of 43 dlrs a share from Nortek Inc <NTK>. Nortek, a Providence, R.I., textile manufacturer, has disclosed it holds 381,050 Rexham shares, or about 9.1 pct of the outstanding, the company said. Rexham said it does not welcome the proposal but added its board will study the offer and respond in due course. Nortek has proposed paying half cash and half Nortek convertible preferred stock for Rexham, which has about 4.2 mln shares outstanding. The cash portion would include the amount previously paid for the Rexham stake and the terms of the convertible preferred stock would be negotiated, the company said. Rexham said it received the takeover offer in a letter from Nortek.  
CAESARS <CAW> HAS NO COMMENT ON MTS TALKS. Caesars World Inc declined immediate comment on news that Martin Sosnoff's <MTS Acquisition Corp> has held preliminary talks with two companies on the possibility of forming a joint venture to pursue the acquisition of Caesars. Earlier today MTS said it held talks with Pratt Hotel Corp <PRAT> and Southmark Corp <SM> on forming a venture to acquire Caesars. MTS also reported that it received a "negligible" number of Caesars World shares in response to its 28 dlr per share tender offer. Earlier this month Caesars World rejected the Sosnoff takeover bid and said it is considering alternatives that include a restructuring or sale of the company to another party.  
DIXONS SAYS CITICORP TO WITHDRAW CYCLOPS OFFER. <Dixons Group PLC> said it received a letter on March 19 from Citicorp Capital Investors Ltd, part of the Cyacq investor group making a rival bid for Cyclops Corp <CYL>, proposing to drop the group's offer if Dixons would sell Cyclops industrial businesses to Citicorp. "Cyacq's main equity investor appears ready to pull out and deal directly with us for merely part of the company" said Dixons. "It raises questions as to the strength of their consortium and the purpose of their offer." Dixons also said a U.S. Federal Court had refused a request by counsel for Cyacq, Audio/Video Affiliates Inc <AVA> and a shareholder plaintiff to prevent Dixons from completing its tender offer for Cyclops. It also said the court refused to require Cyclops to provide Cyacq with confidential information previously provided to Dixons. On Friday Cyacq Corp, an investor group led by Audio/Video Affiliates and Citicorp, raised their offer for Cyclops to 92.50 dlrs per share from 80 dlrs per share, if certain conditions were satisfied. Last week Dixons said it won out over rival bidders for Cyclops after getting 54 pct of Cyclop's oustanding with a 90.25 dlr or 384 mln dlr tender offer that expired March 18. On Friday, Dixons agreed to reopen its tender offer until March 25, Wednesday. Dixons today called Cyacq's higher 92.50 dlr a share offer for Cyclops "highly conditional."  
CITICORP (CCI) SEEKS CYCLOPS <CYL> STEEL UNIT. Citicorp Capital Investors Ltd, a unit of Citicorp, said it wants to buy Cyclops Corp's steel assets from Dixons Group PLC and is willing to pay 124.4 mln dlrs, nearly 13 mln dlrs more than had been offered for the assets by Alleghany Corp. The disclosure of the Citicorp unit's interest in Cyclops' Industrial Group came in disclosure documents filed by Dixons Group with the Securities and Exchange Commission. Alleghany's MSL Industries Inc unit had agreed to buy the steel assets from Dixons Group for 111.6 mln dlrs. Dixons Group has tendered for all outstanding Cyclops shares at 90.25 dlrs a share in cash. The Citicorp unit said its higher offer came to about three dlrs more for each Cyclops share outstanding. As a condition of its offer, it said Dixons would have to increase the cash price it was to pay for each Cyclops share to 93.25 dlrs in cash. Dixons on Friday extended the expiration time of its tender offer until midnight (EST) March 24.  
MARK IV <IV> UNIT TO BEGIN CONRAC <CAX> TENDER. Mark IV Industries Inc said it plans to begin a tender offer at 25 dlrs a share for all outstanding shares of Conrac Corp <CAX>, a Stamford, Conn., maker of control instruments and telecommunications products. Mark IV said it owns about 670,400 shares or about 9.9 pct of Conrac's outstanding shares. The offer, to be made through Mark IV Acquisition Corp, a wholly owned subsidiary, will not be conditioned on any minimum number of shares being tendered, the company said. The tender offer will be conditioned upon, among other things, the completion of financing arrangements. The terms and conditions of the offer will be described in documents to be filed with the Securities and Exchange Commission and mailed to Conrac shareholders as soon as possible. Bear Stearns and Co is expected to act as dealer manager for the offer, it said. A Conrac spokesman declined comment. Conrac has about 6.75 mln shares outstanding. Its shares closed off 1-3/8 at 21-1/8 as about 84,400 shares changed hands. Mark IV is a Williamsville, N.Y., maker of pastic products and industrial control equipment.  
MHI GROUP <MH> AFFILIATED WITH CEMETARY OFFER. MHI Group Inc said it is affiliated with several investors who have entered into a letter of intent providing for the purchase of Star of David Memorial Gardens and Cemetery. The company said those investors will, under certain circumstances, cede their rights under the letter of intent and any definitive agreement to purchase the Fort Lauderdale, Fla., funeral home and cemetery business to MHI.  
HARCOURT <HBJ> DISAPPOINTED WITH HARPER <HPR>. Harcourt Brace Jovanovich Inc said it is disappointed that no negotiations with Harper and Row Publishers Inc are underway. Harcourt made a 50 dlrs a share unsolicited bid on March 11. On March 17, Harcourt said three of its officers met with Harper's financial advisor but has had no discussions since then. Harcourt said it does not plan to increase its bid. Harcourt's bid was preceded by an earlier 34 dlrs a share bid by Theodore Cross. Harper had no response to Harcourt's announcement. Earlier today, Harper said a recently appointed special committee of independent directors had received expressions of interest from several domestic and foreign firms with respect to restructuring or acquisition transactions. Harper said no determination had been made as to any transaction and that its special committee is continuing in talks with interested parties in an effort to come to a conclusion in the near future.  
AMERICAN EXPRESS BOARD APPROVED NIPPON LIFE PURCHASE OF SHEARSON INTEREST.  AMERICAN EXPRESS BOARD APPROVED NIPPON LIFE PURCHASE OF SHEARSON INTEREST  
DU PONT <DD> UPS STAKE IN PERCEPTIVE SYSTEMS. Du Pont Co has increased its equity stake in <Perceptive Systems Inc> to 33.5 pct from 20 pct, Perceptive Systems said. Perceptive Systems, a venture capital firm based in Houston, makes digital imaging equipment.  
QUAKER OATS <OAT> SELLS VERNELL'S FINE CANDIES. Quaker Oats Co said Keystone Partners Inc has purchased Vernell's Fine Candies Inc, previously an indirect subsidiary of Quaker. The price was not disclosed. It said Vernell's, based in Bellevue, Wash., had annual sales exceeding 30 mln dlrs. Vernell's was acquired by Quaker in its acquisition of Golden Grain Macaroni Co in August 1986.  
GRAPHIC INDUSTRIES <GRPH> ENDS BUYOUT TALKS. Graphics Industries Inc said it terminated negotiations for the acquisition of <Holladay-Tyler Printing Corp>, Rockville, Md. The companies on March 10 announced that they had signed an agreement in principle for the acquisition. No reason was given termination of the negotiations.  
COOPER SAYS OFFER MUST INCLUDE CLASS A SHARES. <Cooper Canada Ltd> said it told those who have expressed interest in acquiring control of the company that it would entertain no offer unless it were made to holders both of class A non-voting shares and voting common.  
HECLA <HL> BUYS STAKE IN GREENS CREEK VENTURE. Hecla Mining Co said it agreed to buy a 28 pct stake in the Greens Creek joint venture from Amselco Minerals Inc, a unit of British Petroleum PLC's <BP> BP North America Inc unit. The Greens Creek venture is engaged in final project engineering of a gold-silver-lead-zinc ore body on Admiralty Island, about 15 miles southwest of Juneau, Alaska. Hecla said it estimates its total investment in the project, including its share of production costs, will be about 45 mln dlrs.  
AVALON <AVL> STAKE SOLD BY DELTEC. Avalon Corp said that <Deltec Panamerica SA> has arranged to sell its 23 pct stake in Avalon and that Deltec's three representatives on Avalon's board had resigned. An Avalon spokeswoman declined to indentify the buyer of Deltec's stake or give terms of the sale. In addition, Avalon said three other directors resigned. It said Benjamin W. Macdonald, a director of <TMOC Resources Ltd>, the principal holder of Avalon stock, and Hardwick Simmons, a vice chairman of Shearson Lehman Bros Inc, were then named to the board.  
QUAKER OATS <OAT> SELLS UNIT TO KEYSTONE. The Quaker Oats Co said it sold its Vernell's Fine Candies Inc unit to privately-held Keystone Partners Inc for an undisclosed price. The company said Vernells had sales of around 30 mln dlrs in the year ended in August, 1986. Quaker Oats acquired Vernells in August, 1986 when it purchased Golden Grain Macaroni Co.  
TMOC TELLS SHAREHOLDERS NOT TO ACCEPT SANTOS BID. <TMOC Resources Ltd> told shareholders not to accept Santos Ltd's <STOS.S> 4.00 dlr a share takeover bid pending advice from Macquarie Hill Samuel Corporate Services, its corporate advisor. It said in a statement the Santos bid was below the underlying value of the shares as assessed by Macquarie Hill Samuel at between 4.08 dlrs and 4.72. TMOC, formerly the Moonie Oil Co Ltd, said the valuation was made in response to an earlier and still current bid of 2.55 dlrs a share by <Elders Resources Ltd>. Elders Resources holds 19.9 pct of TMOC's 62 mln shares. TMOC said it did not know Elders Resources' response to the bid or that of its other major shareholder the <Australian Gas Light Co>. The latter has a 10.5 pct stake in TMOC. <Avalon Corp> of the U.S. Has a 17 pct stake in TMOC through an option agreement. Santos, which is 15 pct owned by Elders Resources, yesterday said its bid valued TMOC at 248.5 mln dlrs. TMOC said today this was not a premium over the share price before the bid and that TMOC had traded at up to 4.06 dlrs a share in the last two weeks. TMOC said in the statement that the bid was unsolicited and that Santos had only a 3.07 pct stake despite paying up to four dlrs a share on-market. TMOC has oil and gas interests and pipelines which complement the operations of Santos, the major Cooper Basin oil and gas producer. TMOC shares today closed five cents up at 4.15 dlrs on turnover of 182,000 shares while Santos, due to release its profit result today, rose eight cents to 4.50 dlrs on volume of 245,000 shares.  
WILLIAMS HOLDINGS SAYS IT BIDDING 542.2 MLN STG FOR NORCROS ORDINARY SHARES.  WILLIAMS HOLDINGS SAYS IT BIDDING 542.2 MLN STG FOR NORCROS ORDINARY SHARES  
WILLIAMS HOLDINGS BIDS 542.2 MLN STG FOR NORCROS. Industrial holding company Williams Holdings Plc said it was bidding 542.2 mln stg for the ordinary shares of building products and packaging group Norcros Plc. The offer would be made on the basis of 29 new Williams shares for every 50 in Norcros, or 432.7p a share Norcros shares firmed to 410p at 0914 GMT from a close last night of 397p. A statement by Williams said it was confident of the merits of the proposed merger and it had therefore taken care to propose from the outset the right terms, including a full cash alternative. The offer will include a partial convertible alternative under which shareholders would receive up to a total of 205.69 mln new second convertible shares in Williams instead of their ordinary share allocations. The offer for Norcros preferential shares offers one Williams preferential share for each one of Norcros, for a value of 130p each and a total of 2.9 mln stg. Last week Williams reported that pretax profits for 1986 rose to 22.9 mln stg from 6.3 mln. Speculation about a bid for Norcros had been circulating in the market for several months, dealers said. Initially it centred on <Bunzl Plc>, which once held a 2.6 pct stake, then switched to Williams when it began accumulating shares. Earlier this year, Williams suggested holding talks with Norcros on a possible merger but was rebuffed by Norcros which replied that any benefits that could be achieved could also result from normal trading. In the six months to end-September, Norcros reported a rise in pretax profits to 20.14 mln stg from 18.55 mln on turnover that lifted to 311.82 mln from 303.91 mln Williams Holdings began expanding from 1982 when it had a market capitalisation of around one mln stg. A series of acquisitions in the next four years has pushed its capitalisation up to around 380 mln. The convertible offer would be on the basis of four Williams convertibles for every Norcros share, worth 428p a share. The cash alternative would offer the equivalent of 400.2p a share. The announcement of the bid pushed Williams share price down to 733p from last night's close at 750p. Williams said it held a total 850,000 shares in Norcros, or 0.7 pct, while an associate held a further 1.99 mln or 1.6 pct. There was no immediate response from Norcros.  
NIPPON LIFE, SHEARSON TIE-UP SEEN SETTING TREND. Nippon Life Insurance Co's 538 mln dlr purchase of a 13 pct stake in Shearson Lehman Brothers Inc brokerage unit is a shrewd move that other Japanese insurers are likely to follow, securities analysts said. The investment in one of Wall Street's top brokerage houses is likely to pay off in dollars and international market position, they said. "It's part of a trend towards growing capital participation by Japanese insurance firms in foreign financial institutions," said Simon Smithson, an analyst with Kleinwort Benson International Inc in Tokyo. The investment in Shearson Lehman, a growing firm described by some analysts as the top U.S. Retail brokerage, will give Nippon Life a ringside seat and possibly lower commissions on Wall Street, where it invests an increasing percentage of its assets of 90.2 billion dlrs, they said. Nippon Life staff will also acquire expertise in business sectors which have not yet opened up in Japan, they added. The agreement between the two companies calls for a 50-50 joint venture in London focussing on investment advisory asset management, market research, and consulting on financing. Nippon Life is Japan's largest insurance company and the world's biggest institutional investor, analysts said. The Japanese finance ministry is expected to approve the deal in April, making Nippon Life the first Japanese life insurance firm to take a stake in a U.S. Financial firm. The limit on foreign assets as a proportion of Japanese insurers' assets was increased to 25 pct from 10 pct last year. Since then, they have stepped up purchases of foreign stocks and sought to deepen their understandng of foreign markets and instruments. Last year, a Sumitomo Life Insurance Co official was appointed to E.F. Hutton Group Inc unit E.F. Hutton and Co's board and Sumitomo Bank Ltd spent 500 mln dlrs to become a limited partner in Goldman, Sachs and Co. Smithson said Japanese banks started buying smaller and problem-plagued banks in 1984. "But now Japanese are going for blue-chip organisations," he said. "It's a reflection of what has happened in manufacturing industries," said Brian Waterhouse at James Capel and Co. "With a historically high yen, and historically low interest rates, there's an increasing disincentive to invest in Japan." Competition in fund management has grown along with greater Japanese savings. The typical salaried employee has 7.33 mln yen in savings, reflecting an annual average savings rate of 17 to 18 pct, he said. To stay competitive, fund managers must invest overseas and gain experience with financial instruments which are likely to spread to Japan with further deregulation. "The high regulatory environment has delayed (life insurance firms') diversification. Now there's a growing number of new products in an environment of increasing competition for performance on fund management," Smithson said.  
NIPPON LIFE, SHEARSON TIE-UP SEEN SETTING TREND. Nippon Life Insurance Co's 538 mln dlr purchase of a 13 pct stake in Shearson Lehman Brothers Inc brokerage unit is a shrewd move that other Japanese insurers are likely to follow, securities analysts said. The investment in one of Wall Street's top brokerage houses is likely to pay off in dollars and international market position, they said. "It's part of a trend towards growing capital participation by Japanese insurance firms in foreign financial institutions," said Simon Smithson, an analyst with Kleinwort Benson International Inc in Tokyo. The investment in Shearson Lehman, a growing firm described by some analysts as the top U.S. Retail brokerage, will give Nippon Life a ringside seat and possibly lower commissions on Wall Street, where it invests an increasing percentage of its assets of 90.2 billion dlrs, they said. Nippon Life staff will also acquire expertise in business sectors which have not yet opened up in Japan, they added. The agreement between the two companies calls for a 50-50 joint venture in London focussing on investment advisory asset management, market research, and consulting on financing. Nippon Life is Japan's largest insurance company and the world's biggest institutional investor, analysts said. The Japanese finance ministry is expected to approve the deal in April, making Nippon Life the first Japanese life insurance firm to take a stake in a U.S. Financial firm. The limit on foreign assets as a proportion of Japanese insurers' assets was increased to 25 pct from 10 pct last year. Since then, they have stepped up purchases of foreign stocks and sought to deepen their understandng of foreign markets and instruments. Last year, a Sumitomo Life Insurance Co official was appointed to E.F. Hutton Group Inc unit E.F. Hutton and Co's board and Sumitomo Bank Ltd spent 500 mln dlrs to become a limited partner in Goldman, Sachs and Co. Smithson said Japanese banks started buying smaller and problem-plagued banks in 1984. "But now Japanese are going for blue-chip organisations," he said. "It's a reflection of what has happened in manufacturing industries," said Brian Waterhouse at James Capel and Co. "With a historically high yen, and historically low interest rates, there's an increasing disincentive to invest in Japan." Competition in fund management has grown along with greater Japanese savings. The typical salaried employee has 7.33 mln yen in savings, reflecting an annual average savings rate of 17 to 18 pct, he said. To stay competitive, fund managers must invest overseas and gain experience with financial instruments which are likely to spread to Japan with further deregulation. "The high regulatory environment has delayed (life insurance firms') diversification. Now there's a growing number of new products in an environment of increasing competition for performance on fund management," Smithson said.  
NORCROS REJECTS 542.2 MLN STG BID FROM WILLIAMS. Norcros Plc <NCRO.L> the building products and packaging group said its board had no hesitation in unanimously rejecting this morning's 542.2 mln stg bid from <Williams Holdings Plc>, the industrial holding firm. The company said Williams' 432.7p per share offer was unsolicited and unwelcome and significantly undervalues Norcros. By 1228 gmt Norcros shares were quoted at 418p, up from 397p at yesterday's close. Williams was 15p higher at 765. The Norcros board's detailed views will be sent to shareholders when the formal offer document has been issued by Williams.  
MERRILL LYNCH <MER> IN TALKS ON CANADA PURCHASES. Merrill Lynch and Co Inc is holding talks on acquiring Canadian brokerage firms, a company spokesman told Reuters. He said one of the firms with which Merrill Lynch is negotiating is <Burns Fry Corp> of Toronto, which has already received an offer from Security Pacific Corp's <SPC> 83 pct owned <Hoare Govett Ltd> London-based brokerage unit.  The Hoare Govett bid is valued at about 210.4 mln U.S. dlrs. The spokesman said the talks are the result of a change in Ontario securities laws that takes effect June 30. Currently, companies outside the Canadian securities industry are prohibited from owning more than 10 pct of a Canadian broker.  On June 30, 1987, foreign brokers will be allowed to own up to 50 pct of Canadian brokers, and the percentage will rise to 100 pct a year later.  
MARK IV <IV> STARTS BID FOR CONRAC <CAX>. Mark IV Industries Inc said it has started the 25 dlr per share tender offer for all shares of Conrac Corp that it announced yesterday afternoon. In a newspaper advertisement, the company said the offer and withdrawal rights expire April 20 unless extended.  The offer is not conditioned on receipt of any minimum number of shares but is conditioned on the arrangement of financing. Mark IV already owns about 9.9 pct of Conrac's 6.8 mln shares outstanding.  
ECOLAB <ECL> STARTS BID FOR CHEMLAWN <CHEM>. Ecolab Inc said it has started its previously-announced tender offer for all shares of ChemLawn Corp at 36.50 dlrs each. In a newspaper advertisement, the company said the offer and withdrawal rights expire April 20 unless extended.  The ChemLawn board has approved the tender and a merger at the same price that is to follow. Ecolab said the offer is conditioned on receipt of at least 5,325,000 shares.  ChemLawn now has about 10.0 mln shares outstanding. Ecolab said ChemLawn has granted it a conditional option to buy all authorized but unissued and unreseved ChemLawn shares at 36.50 dlrs each.  The option is exercisable in the event that another party were to acquire 20 pct or more of ChemLawn by means other than a tender offer for all shares at a higher price than Ecolab is offering. The company said if the merger agreement is terminated under certain circumstasnces, it will be entitled to receive 20 mln dlrs in damages from ChemLawn. Ecolab said officers and directors of ChemLawn have granted it options to acquire an aggregate of 2,535,435 ChemLawn shares or about 24.8 pct for the tender price, again unless a higher tender were to be made by another party. Waste Management Inc <WMX> had originally made a hostile tender offer of 27 dlrs per share for ChemLawn which ChemLawn rejected as inadequate.  On Friday, Waste Management said it would raise its bid to 35 dlrs per share.  
KDI <KDI> TO BUY TRIANGLE MICROWAVE <TRMW>. KDI Corp said it has agreed in principle to acquire Triangle Microwave Inc for 6.50 dlrs plus a contingent payment for each Triangle share. It said holders of the contingent payment units will be entitled to receive annual payments to the extent that the predepreciation gross profits of Triangle Microwave in each of the years 1987 through 1991 exceed threshholds ranging from eight mln dlrs in 1987 to 14 mln dlrs in 1991. The company said holders of Triangle Microwave options and warrants will be entitled to receive the difference between 6.50 dlrs and their exercise price, plus contingent payments. KDI said completion of the transaction is subject to governmental approvals and the approval of Triangle Microwave shareholders, and the transaction is valued at over 35 mln dlrs. It said shareholders of Triangle Microwave controlling about 30 pct of the company's stock have agreed to vote in favor of the deal and to give KDI an option to buy their shares under certain components. Triangle Microwave makes microwave components.  KDI, a diversified company, produces electronic components, technical products and swimming pool equipment.  
COMDATA NETWORK AGREES TO HIGHER OFFER FROM WELSH CARSON ANDERSON.  COMDATA NETWORK AGREES TO HIGHER OFFER FROM WELSH CARSON ANDERSON  
COMDATA <CDN> ACCEPTS NEW WELSH CARSON BID. Comdata Network Inc said it has entered into a definitive agreement to merge into a company formed by <Welsh, Carson, Anderson and Stowe IV> for either 16.50 dlrs in cash or 10.00 dlrs in cash and a unit of securities per Comdata share. The company said each unit of securities would consist of 1.25 common shares in the new company and three dlrs principal amount of the new company's 11 pct subordinated debentures due 1997. It said the 16.50 dlr cash alternative is an improvement over the 15.00 dlr per share price contemplated under an agreement in principle with Welsh Carson announced on March Five. Comdata said the cash and securities alternaitcve is subject to Welsh Carson-affiliated investors owning at least 60 pct of the stock of the new company. The company said investment bankers <Drexel Burnham Lambert Inc> and Alex. Brown and Sons Inc <ABSB> found the proposal to be fair from a financial point of view. It said the transaction is subject to approval by its shareholders and to Welsh Carson obtaining up to 230 mln dlrs in debt financing. Comdata said it may terminate the agreement if financing is not arranged by April Three. On Thursday, First Financial Management Corp <FFMC> offered to acquire Comdata for 18.00 dlrs per share in stock and cash, subject to approval by the Comdata board. Under the First Financial proposal, Comdata holders would receive no more than four dlrs per share in cash and could receive all stock. Comdata had originally planned a recapitalization under which it would have repurchased up to six mln common shares at 14.50 dlrs each.  
GREAT WESTERN <GWF> SELLS INSURANCE UNIT. Great Western Financial Corp said it agreed to sell its John Alden Life Insurance Co and its affiliated operations for 280 mln dlrs to a newly-formed company onwed by the John Alden Management Group. General Electric Credit Corp delivered a commitment letter arranged by the GECC Capital Markets Group Inc for the financing. Great Western said the pre-tax gain on the sale will be approximately 65 mln dlrs, and after tax gain will be approximately 15 mln.  
PRINCEVILLE <PVDC> GETS LETTER OF CREDIT. <Qintex Ltd> of Brisbane said <Westpac Banking Corp> of Australia has issued a commitment letter to provide Princeville Development Corp with the letter of credit required under Qintex's proposed acquisition of Princeville. The letter of credit would ensure payment of Princeville's contingent subordinated notes to be distributed to shareholders of record on the day immediately following completion of Qintex's tender for 3,300,000 Princeville share. It said issuance of the letter of credit is still subject to conditions including appropriate documentation, but the letter is expected to be issued around April Three. Qintex said as a result it has extended its tender offer for Princeville shares until April Three. It said through yesterday it had received 7,424,292 shares under the offer.  
COLUMBIA FIRST <CFFS> TAKES OVER BANK. Columbia First Federal Savings and Loan Association said it has acquired the insured deposits of first Federal of Maryland, based in Hagerstown, from the Federal Savings and Loan Insurance Corp and reopend First Federal's six former offices as Columbia First branches. The Federal Home Loan Bank Board had closed First Federal on March 20 because it was insolvent.  First Federal had assets of 115.2 mln dlrs.  
ARGYLL SELLS SUBSIDIARY'S ASSETS FOR 14 MLN STG. Food and drink retailer Argyll Group Plc <AYLL.L> said it has agreed to sell its U.K. Subsidiary <George Morton Ltd> to <Seagram United Kingdom Ltd> for about 14 mln stg in cash. The consideration for Morton's fixed assets, stocks, debtors and goodwill is payable on completion of the sale. The disposal will bring Argyll an extraordinary credit of some 8.4 mln stg. Argyll added the agreements also depend on an indication from the U.K. Office of Fair Trading by June 23 that the sale will not be referred to the Monopolies Commission. Argyll shares were up 12p to 440, firming before the announcement.  
BOND CORP HAS NO COMMENT ON ALLIED SPECULATION. Bond Corp Holdings Ltd  <BONA.S> of Australia said it had no comment on an article in a London evening newspaper speculating on its plans for a bid approach to U.K. dDrinks and food giant Allied Lyons Plc <ALLD.L>. Tony Oates, Bond Corp's Executive Director for Finance and Administration, said "The company does not comment on market rumors or press conjecture." He added in all instances of this kind problems are likely to arise whatever is said. Allied's shares were 3p up at 401p, which values the company at around 2.75 billion stg. London stock market analysts specializing in brewery shares viewed a bid from Bond, which they said has assets of around two billion stg, as highly unlikely. They added that rumours of a possible bid for Allied have surfaced from time to time in the press and the London equity market ever since last year's thwarted approach from Elders IXL Ltd <ELXA.S> of Australia.  
CLAREMONT TELLS SEC IT SEEKS 15 PCT CHAMPION PRODUCTS STAKE, TWO BOARD SEATS.  CLAREMONT TELLS SEC IT SEEKS 15 PCT CHAMPION PRODUCTS STAKE, TWO BOARD SEATS  
CLAREMONT TO BOOST CHAMPION PRODUCTS <CH> STAKE. Claremont Group Ltd, a New York investment banking firm, said it intends to boost its current 10 pct stake in Champion Products Inc to as much as 15 pct of the total outstanding common stock. Claremont added that it asked Champion to put two representatives on its nine-member board of directors. Claremont previously disclosed in December that it had agreed to act in concert with Walsh, Greenwood and Co, an affiliated investment firm, to acquire Champion Products. Claremont said it made net purchases of 7,800 Champion Products shares between Jan. 28 and March 18. In a March 20 letter to Champion Chairman John Tanis, Claremont and Walsh representatives Stephen Walsh and John Cirigliano said they were pleased with the company's performance but wanted to take an active management role. "We believe that Champion Products has just begun to evolve into the market leader it will eventually become," they said. "As significant shareholders with mutual interests with the company, we would like to actively participate in this process." Claremont's intentions and the letter were made public in a filing with the federal Securities and Exchange Commission.  
CYCLOPS <CYL> SAYS DIXONS AGREEMENTS BINDING. Cyclops Corp said that as it has already stated, its agreements with <Dixons Group PLC> are binding and Dixons will not rescind or waive any provisions of the agreements. The company said its agreement to merge into Dixons does not permit it to provide nonpublic information to <CYACQ>, which is making a competing offer for Cyclops, that had been provided to Dixons. It said other provisions Dixons will not waive include its rights to recover breakup fees or expenses from Cyclops or buy Cyclops common shares from Cyclops. Cyclops noted that Dixons' waiver of rights to breakup fees or the purchase of common stock directly from Cyclops and the provision of nonpublic information to CYACQ are conditions to CYACQ's increased 92.50 dlr per share offer to acquire Cyclops shares. Dixons is tendering for Cyclops shares at 90.25 dlrs a share.  Yesterday Citicorp <CCI>, with Audio/Video Affiliates Inc <AVA> an owner of CYACQ, said it had offered to acquire from Dixons after the merger of Cyclops into Dixons Cyclops' industrial businesses for 12.8 mln dlrs more than Alleghany Corp <Y> is currently scheduled to pay for them. Citicorp said yesterday that its proposal would allow Dixons to raise its tender price to 93.25 dlrs per share. Citicorp said if Dixons accepted the proposal, CYACQ would terminate its competing offer for Cyclops.  
<J.M. RESOURCES INC> IN MERGER AGREEMENT. J.M. Resources Inc said it has acquired a 90 pct interest in DEI Acquisition Corp from InterFirst Venture Corp, Sam B. Myers, Neomar Resources Inc and Richard L. Morgan, all of Dallas, for warrants to acquire 10.1 mln shares of J.M. stock and three mln dlrs of notes. The warrants are exercisable at par value, currently 10 cts per share, until March 20, 1997.  The company said if the warrants were exercised in full, they would represent a 40.7 pct interest in J.M. common stock.  It said amounts due under the notes are payable soleley from proceeds of the sale of securities by J.M. and non-oil and natural gas revenues of DEI. J.M. said DEI provides specialty insulation installation and asbestos removal services. J.M. said all of its directors except Jack E. Manning Jr. have resigned and Myers and Morgan were named to the board. It said Manning has resigned as president in favor of Myers and will service as vice president in charge of oil and natural gas operations.  
ASTROTECH <AIX> DIRECTOR BUYS COMPANY STOCK. Astrotech International Corp said its director S. Kent Rockwell, who controls Rockwell Venture Capital Inc, will buy 27 pct of the company's cumulative preferred stock. It said will buy up to 302,300 shares of Astrotech's 1.80 dlrs cumulative preferred stock. It said the shares are owned by W.F. Rockwell Jr, chairman and chief executive officer of Astrotech and S. Kent Rockwell's father.  
CALNY INC REJECTS PEPSICO INC ACQUISITION OFFER.  CALNY INC REJECTS PEPSICO INC ACQUISITION OFFER  
DIXONS PLANS TO LET CYCLOPS <CYL> OFFER EXPIRE. Dixons Group PLC said it does not plan to extend the expiration date of its tender offer for any and all common shares of Cyclops Corp beyond tonight. Dixons said it would accept shares validly tendered and not withdrawn by midnight tonight. Dixons, which is offering 90.25 dlrs a share for Cyclops, said last week it had about 54 pct of Cyclops common shares. Its offer originally was scheduled to expire March 17 but was extended for one week. Yesterday Citicorp <CCI>, with Audio/Video Affiliates Inc <AVA> an owner of CYACQ, said it had offered to acquire from Dixons after the merger of Cyclops into Dixons, Cyclops' industrial businesses for 12.8 mln dlrs more than Alleghany Corp <Y> is currently scheduled to pay for them. Citicorp said yesterday that its proposal would allow Dixons to raise its tender price to 93.25 dlrs per share. Citicorp said if Dixons accepted the proposal, CYACQ would terminate its competing 92.50 dlr offer for Cyclops. Citicorp had suggested yesterday that Dixons extend its tender until March 31 in connection with the price increase.  
GNB JOINS IN LEVERAGED BUYOUT OF FRENCH UNIT. <GNB Inc> said it joined with the management of the French company Compagnie Francaise d'Electro-Chimie to purchase the company for an undisclosed amount. The French company, which produces lead-acid batteries, had sales in 1986 of 75 mln dlrs, GNB said.  
CALNY <CLNY> REJECTS PEPSICO ACQUISITION OFFER. Calny Inc said its board rejected as inadequate the unsolicited offer by PepsiCo Inc <PEP> subsidiary Taco Bell Corp for all Calny's outstanding common stock at 11.50 dlrs cash per share. Taco Bell recently acquired 9.9 pct of Calny's outstanding stock, Calny said. Calny said it retained Oppenheimer and Co Inc to consider various financial and strategic alternatives available to the company.  
SOUTHMARK <SM> SELLS NATIONAL HERITAGE STAKE. National Heritage Inc, a unit of Southmark Corp, said it began an initial public offering of two mln shares of common stock at a price of 9.50 dlrs a share. All the shares are being offered by National Heritage, which will trade under symbol NHER on Nasdaq, through lead underwriter Drexel Burnham Lambert Inc. Proceeds will be used to increase working capital, complete renovations at leased facilities and repay certain debts to Southmark. After the offer, Southmark will retain about 82 pct of the 11 mln outstanding common shares of National Heritage, which operates 201 long-term nursing care facilities.  
OWENS-ILLINOIS <OI> ACQUISITION COMPLETED. OII HoLdings Corp, a concern formed by Kohlberg Kravis Roberts and Co, said it completed its previously announced acquisition of Owens-Illinois Inc. Under terms of the February 10 agreement, OII paid 60.50 dlrs per common share and 363 dlrs per 4.75 dlrs convertible preferred share. OII said each common share still outstanding at the time of the merger has been converted into the right to receive 60.50 dlrs per share and all preference shares not converted will be redeemd on April 22 at a redemption price of 100 dlrs per preference share plus accrued and unpaid dividends. OII said it has assumed Owen's 3-3/4 pct sinking fund debentures due June 1, 1988, 9.35 pct sinking fund debentures due November 1, 1999, and 7-5/8 pct debentures due April 1, 2001. OII said the New York Stock Exchange said the securities will be delisted as a result of the merger. OII said it is anticipated that the securities will be traded in the over-the- counter market. The surviving company will be known as Owen-Illinois Inc, it said.  
CHRYSLER, LAMBORGHINI STILL IN JOINT VENTURE TALKS. Joint venture talks that could lead to Chrysler Corp <C> taking a stake in Italian car maker <Automobili Lamborghini SpA> are continuing, a Lamborghini spokesman said. He told Reuters the two companies are discussing a number of topics ranging from "a joint venture in the production area to Chrysler becoming a shareholding partner" in the Italian firm. The spokesman declined to comment on whether Chrysler was interested in acquiring control of Lamborghini or if the two sides were close to an accord. He said the two companies are discussing the possibility of jointly developing a sports car aimed primarily at the U.S. Market. The spokesman said Chrysler officials in Detroit had already visited Lamborghini's production plant in Bologna and another visit may be scheduled. Lamborghini, which is controlled by the Mimran Group of Switzerland, broke even last year on sales of 29 billion lire, he said. Chrysler also holds a 15 pct interest in Italian sports car producer <Alfieri Maserati Spa>.  
CP AIR, PACIFIC WESTERN AIRLINES SET NEW NAME. <Pacific Western Airlines Corp> said the airline resulting from the previously announced merger of its Pacific Western Airlines Ltd unit and Canadian Pacific Air Lines Ltd would be named Canadian Airlines International Ltd, effective April 26. Pacific Western said the two airlines' services and schedules would also be integrated on April 26. It previously appointed management for the new airline. The new airline, Canada's second largest, will have 81 planes flying to 89 destinations in 13 countries. Pacific Western recently acquired Canadian Pacific Airlines for 300 mln dlrs from Canadian Pacific Ltd <CP>.  
OLIVETTI DOES NOT EXCLUDE STAKE IN SGS-THOMSON. Ing C Olivetti EC SpA <OLIV.M> does not exclude the possibility of investing in a semiconductor venture currently under discussion between Italy's <STET - Societa Finanziaria Telefonica P.A.> and France's Thomson-CSF <TCSF.PA>, an Olivetti spokesman said. He said that if Olivetti were approached by the two partners involved and the financial conditions of any proposal were considered interesting, the company did not exclude the possibility of investing in the venture. However, Olivetti had made no decision on any such investment and did not have at its disposal information to evaluate such a move. Stet and Thomson said last Thursday they were negotiating an accord involving their respective subsidiaries <SGS Microelettronica SpA> and <Thomson Semiconducteurs> in the civil semiconductor field. They said the accord, once concluded, would be put for approval to the French and Italian authorities. The Olivetti spokesman was responding to a Reuters query about Italian press reports today saying that Olivetti might participate in the venture with a two pct stake.  
NESTLE TO ACQUIRE NABISCO CANADA BUSINESSES. Swiss-based <Nestle S.A.>'s Nestle Enterprises Ltd unit said it signed a letter of intent to acquire <Nabisco Brands Ltd>'s Club, Melrose, Dickson and Chase and Sanborn businesses for undisclosed terms. Nestle said the final agreement, subject to required approvals, would be signed shortly. The businesses involved in the deal provide products to hotels, restaurants and other parts of the food and beverage industry. Nabisco is 80 pct-owned by RJR Nabisco Inc <RJR>.  
<PAUL'S PLACE INC> CONTROL CHANGES. Paul's Place Inc said chairman, president and treasurer Paul D. Lambert has sold 240 mln common shares to other board members, advisory board members Alan H. Marcove and Gerald M. Marcove and an unaffiliated purchaser it did not name. Terms were not disclosed. The company said Alan Marvoce has been named to replace Lambert as chairman and chief executive officer and Michael T. Fuller has been named president. Fuller was formerly president of <Mr. Steak Inc>.  
CYACQ AMENDS CYCLOPS OFFER CONDITIONS, SAYS CITICORP EXPANDS FINANCING.  CYACQ AMENDS CYCLOPS OFFER CONDITIONS, SAYS CITICORP EXPANDS FINANCING  
GORDON JEWELRY <GOR> COMPLETES SALE OF UNIT. Gordon Jewelry Corp said it has completed the previously-announced sale of the assets of its catalog showroom stores to privately-held Carlisle Capital Corp for an undisclosed amount of cash and notes in excess of book value.  
CYACQ CUTS CONDITIONS ON CYCLOPS <CYL> BID. Cyacq Corp, an investor group bidding for Cyclops Corp, said it amended its outstanding 92.50 dlrs a share tender offer for Cyclops to eliminate two conditions and modify a third one. The group, which includes Audio/Video Affiliates Inc and a unit of Citicorp <CCI>, said it also obtained additional financing commitments, including an increased commitment from Citicorp Capital Investors Ltd. The conditions that were eliminated are Cyacq's request for non-public information about Cyclops that was previously provided to Dixons Group PLC and Cyacq's being satisified that the information provides an adequate basis for Cyclop's published financial projections. Cyclops has agreed to be acquired Dixons Group, which has a 90.25 dlrs a share tender offer for Cyclops outstanding. Dixons said earlier it would allow the offer to expire tonight. The condition that was modified, which required Cyacq to be satisfied that break up fees or other obligations to Dixons were rescinded or ineffective, now says Cyclops shall not have paid any such fees or expenses to Dixons prior to the consummation of Cyacq's offer. Cyacq's amended offer expires midnight New York time on April three, 1987, unless extended. Manufacturers Hanover Trust Co and CIT Group/Business Credit Inc increased its tender offer commitment to 197 mln dlrs from 166 mln dlrs and its merger commitment to 275 mln dlrs from 250 mln dlrs. Additionally, the Citicorp unit and Audio/Video have increased their commitments to Cyacq to 185 mln dlrs. Of the new total, 150 mln dlrs has been committed by Citicorp. Cyacq said it estimates that it needs 407.5 mln dlrs to buy all Cyclops shares that may be tendered and pay related fees and expenses. It said it is seeking to arrange the balance of about 25.5 mln dlrs necessary to complete the offer. All previously announced conditions regarding the lending group led by Manufacturers Hanover remain in effect, except that the loans are subject to the concurrent receipt by Cyacq of equity contributions and other financing of not less than 210.5 mln dlrs for the tender offer facility and 213.5 mln dlrs for the merger facility. Cyacq also said the Citicorp unit had received no indications of interest in an alternative offer it had made from Dixons, Cyclops or Alleghany Corp <Y>, which has agreed to acquire Cyclops' industrial group from Dixons. Under the alternative offer, the Citicorp unit, with Cyacq's approval, proposed to acquire the industrial group from Dixons.  
CONRAC <CAX> SOARS FOLLOWING MARK IV <IV> BID. Heavy buying by speculators boosted Conrac Corp 7-7/8 to 29, higher than a 25-dlr-per-share cash tender offer announced by Mark IV Industries Inc <IV>. "It's a case of ChemLawn euphoria," said one arbitrageur, referring to a recent hostile tender that began at 27 dlrs per share and ended when ChemLawn Corp <CHEM> found a white knight willing to bid 36.50 dlrs. For Conrac, the arbitrageur said, 28 dlrs per share seemed like an "appropriate price." Another said "it's too early to project the outcome." "The market is speaking for itself and saying the 25 dlr offer is inadequate," the second arbitrageur said. But he added it was hard to make a case for Conrac being worth much more than the 29 dlrs where the shares traded today. He noted the stock recently sold in the high teens and there could be a downward risk of 10 dlrs or more if Conrac is able to thwart Mark IV. Conrac urged shareholders to take no action while its board studies the offer and confers with advisers. Conrac said it would make a recommendation by April 17. A third arbitrageur noted Mark IV had been involved in several takeovers previously and has proven itself to be a determined bidder. "They're not beginners," he said. Another said Conrac might have trouble if it tried to find another buyer. "It's a hodge-podge of non-related businesses," he said. "There is only a small universe of people who would want to own the company as it's presently structured." Conrac is involved in video displays, computer software, aircraft instruments, telephone answering machines, welding equipment and other products. "I'm telling retail clients to sell and leave the rest for those who can take the risk," said Rudolph Hokanson, analyst at Milwaukee Co. He called the 25-dlr offer by Mark IV "fair value but on the low side." "I don't think management was looking for a buyer in any way before this offer," he said. Hokanson said Conrac has conservative finances and has developed a reputation for quality products that serve niche markets. He said management has done a good job of turning around the telephone answering machine business.  
LASER PHOTONICS <LAZR> SELLS COMMON SHARES. Laser Photonics Inc said it sold 615,385 shares of its common stock to investors for one mln dlrs under a previously-announced agreement. In connection with the investment, the company said it will restructure its board. There will be eight members, three of whom were designated by the new investors, the company said. The group of investors include affiliates of <Radix Organization Inc>, the company said. Richard Gluch Jr resigned from the board. Joining the board were Leonard Lichter, Pierre Schoenheimer and Roger Kirk, the investors' designates, the company added. Other members of the board are chairman Don Friedkin, president and chief executive officer Mark Fukuhara, and Jay Watnick, Ira Goldstein, Thurman Sasser and Michael Clinger.  
CONRAC <CAX> URGES NO ACTION ON BID. Conrac Corp said it is asking shareholders to take no action on the 25-dlr-per-share tender offer for all its shares launched this morning by Mark IV Industries Inc <IV>. The company said its board will study the offer with financial and legal advisors and make a recommendation to shareholders by April 17.  
FINANCIAL CORP <FIN> NOT HOLDING BUYOUT TALKS. Financial Corp of America said it is not holding discussions with anyone regarding a buyout of the company. But a spokeswoman pointed out that Financial Corp has said publicly for nearly two years that in the company's view a merger would be one method of increasing the company's capital. "If an opportunity arises for us to strengthen our capital position quickly we would be very open to it," the spokeswoman said. Financial Corp would need over one billion dlrs to bring its regulatory net worth up to Federal Savings and Loan Insurance Corp requirements, the spokeswoman said. In addition, she said that the Federal Home Loan Bank Board, in a letter dated January 26, 1987, stated that through March 31, 1988 it will continue to support the company's efforts to restructure its balance sheet, maintain profitable operations and augment net worth.  
MOBEX COMPLETES GRANT INDUSTRIES <GTX> TENDER. Mobex Corp, a private building product concern, said as of late yesterday it had accepted about 2.3 mln shares or 98 pct of Grant Industries Inc under a tender offer. The 7.75 dlrs a share cash offer expired at 2000 EST yesterday. Mobex said its Mobex Acquisition Corp unit accepted 2,316,940 shares of Grant common, or about 98 pct of the 2,369,799 shares presently outstanding, at the tender price.  
TELECOM <TELE> COMPLETES SALE. Telecom Plus INternational Inc said it completed the sale of its 65 pct interest in Tel Plus Communications Inc to Siemens Information Systems INc for about 173 mln dlrs. Telecom received 107 mln dlrs at closing with the balance to be paid in installments. Siemen said it will dispute various matters in the financial statement issues and other matters, it said.  
STANADYNE <STNA>, UNITED TECHNOLOGIES END TALKS. Stanadyne Inc said it terminated discussions about its proposed purchase of United Technologies Corp's Diesel Systems <UTX> unit. The reason was not disclosed.  
SUNDOR GROUP BUYS DWG <DWG> UNIT'S ASSETS. <Sundor Group Inc> said it purchased DWG Corp's Texun Inc's line of regional juice products. The purchase terms were not disclosed, the company said.  
HAYES-ALBION <HAY> COMPLETES GOING PRIVATE DEAL. Hayes-Albion Corp said its shareholders approved a plan to merge with and become a wholly onwed subsidiary of privately held Harvard Industries Inc. St. Louis-based Harvard Industries, a manufacturer and distributor of automobile supplies, held 80 pct of Hayes following completion of a 13 dlrs a share cash tender offer in December. Under the merger agreement, remaining shareholders of Hayes, a Jackson, Mich.-based maker of auto supplies, will receive 13 dlrs cash for their shares. Trading in Hayes common will cease at the close of business today, the company said.  
EASTMAN KODAK CO TO SELL HOLDINGS IN ICN PHARMACEUTICALS AND VIRATEK INC.  EASTMAN KODAK CO TO SELL HOLDINGS IN ICN PHARMACEUTICALS AND VIRATEK INC  
MIDIVEST ACQUIRES ASSETS OF BUSINESS AVIATION. <Midivest Inc> said it acquired all the assets of <Business Aviation Inc> of Sioux Falls, S.D., for an undisclosed amount of stock. Midivest said it expects to sell 10 to 20 of the renovated Beechcraft planes next year. It said management will also lease these airborne intensive care units to hospitals and government subdivisions through Metropolitan Leasing, a wholly-owned subsidiary of Midivest.  
EASTMAN KODAK <EK> TO SELL HOLDINGS. Eastman Kodak Co said it plans to sell its 2.3 pct holding in ICN Pharmaceuticals <ICN> and part of its nine pct holdings in Viratek <VIRA>. It said the purpose of the investments had been to lay the groundwork for the creation of its Nucleic Acid Research Institute. Since that has been achieved, there is no longer any reason to maintain the equity positions, Kodak said. Kodak holds 470,000 sahres of ICN, currently trading at about 18-3/4 and 700,000 of Viratek, trading at 44.  
FIRM REDUCES SCEPTRE RESOURCES <SRL> HOLDINGS. Montreal-based Noverco Inc told the Securities and Exchange Commission it reduced its stake in Sceptre Resources Ltd to 1,232,200 shares or 4.8 pct of the total outstanding. Noverco said it sold off 400,500 shares "to reduce the investment of Noverco in Sceptre." "Additional common shares of Sceptre may be sold or purchased by Noverco, depending upon market conditions," Noverco said.  
NASHUA <NSH> TO PURCHASE PRIVATE DISC MAKER. Nashua Corp said it signed a letter of intent to purchase <Lin Data Corp>, a private manufacturer of high-capacity rigid discs for storage of computer data. Under the terms of the letter, Nashua said it will acquire all classes of Lin stock for 24 mln dlrs. In addition, it said it will loan Lin 1,200,000 dlrs to support its operations. The closing of the sale is set for the second quarter of 1987, the company said.  
RESORTS INTERNATIONAL GETS BUYOUT PROPOSAL FROM KSZ CO INC.  RESORTS INTERNATIONAL GETS BUYOUT PROPOSAL FROM KSZ CO INC  
GARTNER GROUP <GART> ACQUIRES COMTEC PROGRAM. Gartner Group Inc said it acquired sole ownership of the COMTEC Market Research Program. Gartner said its wholly-owned subsidiary purchased the interests of its former partners for an aggregate price of 1,125,000 plus a percentage of net sales proceeds on future sales of certain products. Prior to the acquisition, Gartner Group owned one-third in the COMTEC partnership, it said.  
RESORTS INT'L <RT.A> RECEIVES TAKEOVER OFFER. Resorts International Inc said it received a proposal from <KSZ Co Inc> under which holders of Resorts class B stock would receive 140 dlrs a share in cash and one share of common stock in a new company to be formed through the takeover. Under the offer, Resorts said holders of its class A shares would receive 15 dlrs a share in cash and three shares of common stock in the new company. Resorts said the offer from KSZ calls for a merger of Resorts with RI Acquisition Co Inc, a newly formed Delaware corporation. Resorts said that prior to the merger, RI Acquisition would be capitalized with about 100 mln dlrs of debt and about 220 mln dlrs of equity. It said 200 mln dlrs of the equity would be in the form of special preferred stock. The KSZ offer, Resorts said, indicates that KSZ has a commitment from <M. Davies Cos> to buy all of the special preferred stock. Resorts said the offer will expire at 1700 EST on March 27. It said it asked its investment advisor, Bear, Stearns and Co, to advise its board on the offer. Earlier this month, the estate of James M. Crosby and certian members of his family agreed to sell their class B shares to New York real estate tycoon Donald Trump for 135 dlrs a share. The estate and family members hold 78 pct of the 752,297 class B shares outstanding. Trump also agreed to pay 135 dlrs a share for the remaining class B shares outstanding. Resorts also has about 5,680,000 shares of outstanding class A stock. These shares carry one one-hundredth the voting power of the class B shares. Trump's offer beat out a rival bid of 135 dlrs a share made by Pratt Hotel Corp <PRAT>. Resorts said that under the proposal made by KSZ, existing class A and class B shareholders would control about 96 pct of the outstanding common of the new company formed to acquire Resorts. Resorts said the new company, upon completion of the merger, would hold the 220 mln dlrs of debt and that the special preferred stock would immediately be converted into exchangeable participating preferred of the new company. This preferred, Resorts said, would pay a dividend based on the net cash flows from the new company's Paradise Island operations. A Resorts spokesman said the KSZ offer was made in a two-page letter and that Resorts could not comment on it because it did not contain enough information. Resorts has asked Bear, Sterns to obtain complete data, he said. The spokesman said Resorts is not familiar with KSZ but that it believes the company is controlled by Marvin Davis, the Denver oilman. Calls to Davis were referred to Lee Solters, who handles public relations for Davis. Solters, said to be travelling, was not immediately available for comment. Donald Trump was also unavailable for comment, as was a spokesman for the Crosby estate.  
KIRSCHNER <KMDC> COMPLETES PURCHASE. Kirschner Medical corp said it completed the acquisition of Minnesota Mining and Manufacturing's <MMM> orthopedic metal implant line division. The acquisition price is 12.0 mln dlrs in cash, a six mln dlr three year note and 100,000 shares of Kirschner common stock. The division had sales of 11.3 mln dlrs in 1986.  
MARYLAND NATIONAL <MDNT> SEES NEW NAME. Maryland National Corp, the parent of Maryland National Bank which earlier this month merged with American Security Bank, said its shareholders will vote on a new name for the regional bank holding company at its April 29 annual meeting. It said MNC Financial Inc is the proposed new name for the parent company. The banks merged on March 16, and have combined assets of about 14 billion dlrs. Maryland said the new name only will be used for the parent and it does not plan to change the names of Maryland National Bank, American Security Bank or non-bank affiliates.  
BORG-WARNER SAYS IT DISCUSSED POSSIBLE TAKEOVER WITH IRWIN JACOBS.  BORG-WARNER SAYS IT DISCUSSED POSSIBLE TAKEOVER WITH IRWIN JACOBS  
CYCLOPS CORP SAYS CYACQ'S AMENDED OFFER RESTATES ORIGINAL CONDITIONS.  CYCLOPS CORP SAYS CYACQ'S AMENDED OFFER RESTATES ORIGINAL CONDITIONS  
BORG-WARNER <BOR> TELLS OF TALKS WITH JACOBS. Borg-Warner Corp said it has had discussions with Irwin Jacobs on his interest in the possibility of Minstar Inc <MNST>, a Jacobs controlled company, being given access to certain non-public information about Borg-Warner. In late February, an investor group headed by Jacobs offered 44 dlrs a share, or 3.29 billion dlrs, to take over Borg-Warner. Borg-Warner said it advised Jacobs that before its board would give Minstar access to company records Minstar would have to provide satisfactory evidence that sufficient financing was committed to carry out whatever transaction was proposed. A Borg-Warner spokesperson said the discussions with Jacobs and other Minstar officials focused on terms and conditions under which the company would consider granting Minstar access to the information it was seeking. The Borg-Warner spokesperson said the company has not been able to reach an agreement with Minstar, and Borg-Warner has not granted Minstar access to any records. There can be no assurance that there will be further discussions with Jacobs or that any agreement will be reached, the company added.  
RB INDUSTRIES <RBI> COMPLETES STORE SALES. RB Industries Inc said it completed the sale of its W and J SLoane Division to Laurence Crink Jr and a group of investors. The definitive agreement provides for a closing on April 1, 1987. The division consists of four W and J Sloane furniture store in Los Angeles and Orange counties. RB Industries also said it recently secured a five-year 8.573 pct secured 9.9-mln-dlr loan on its Irvine property from a major institution. Proceeds will be used to retire existing bank debt, for working capital and to retire a portion of its outstanding 12 pct debentures.  
GENCORP <GY> TAKEOVER GROUP CANCELS HEARING. The investor group seeking to acquire GenCorp Inc said it agreed to cancel a court hearing after GenCorp withdrew three proposals that, if approved, would have made it more costly and difficult to acquire the Akron, Ohio-based company. Earlier today GenCorp said it will not ask shareholders to approve an increase in the number of its outstanding shares, the election of a staggered board of directors and the elimination of cumulative voting. However, the group said it will continue to try to block GenCorp's poison-pill provision. The group, a partnership of AFG Industries Inc <AFG> and <Wagner and Brown>, was to go to court on March 27 to block GenCorp for having the three proposals voted on by shareholders at its annual meeting. GenCorp said it withdrew the proposals so that it could focus its attention on the takeover offer. The takeover partnership said it has asked to meet with GenCorp to negotiate a repeal of the company's poison pill plan.  
GENCORP <GY> FIXES RIGHTS SEPARATION DATE. Gencorp Inc said that because it is continuing to evaluate General Acquisition Inc's tender offer it has fixed April 3, subject to further extension, as the date the rights to purchase preferred shares will trade separately from the common stock as a result of the tender offer. This extension of the expiration date is conditioned on no person acquiring beneficial ownership of 20 pct or more of Gencorp's common stock prior to April 3, it said. Gencorp said it could distribute the rights certificates to shareholders 10 to 30 days after the March 18 acquisition offer was made. However, rather than leaving the expiration date in a range, the board decided to set April 3 as the day it will distribute the preferred share purchase rights.  
AMERICAN INTERNATIONAL <AIG> SELLS AFRICAN UNIT. American International Group Inc said it sold its South African subsidiary, American International Insurance Co Ltd, to Johannesburg Insurance Holdings Ltd, a holding company owned by a consortium of shareholders led by Rand Merchant Bank. Terms were not disclosed and company officials were unavailable for comment. With the conclusion of the sale, American International has entirely divested itself of its holdings in South Africa.  
BAYOU <BYOU> IN DEFINITIE MERGER AGREEMENT. Bayou Resources Inc said it reached an definite agreement to be acquired by Patrick Petroleum Co through a stock and cash transaction valued at six dlrs per Bayou share. Bayou also reported net loss of three cts or 23,024 dlrs for the fourth quarter compared with a net income of 10,128 dlrs or one cts a year. Revenues fell to 532,807 dlrs from 769,465 dlrs a year ago. For the year, Bayou reported a net loss of 14 cts or 116,793 dlrs compared to a net income of 23 cts or 203,372 dlrs. Revenues fell to 2.4 mln dlrs from 3.3 mln dlrs.  
FLEET TO ACQUIRE ASSETS OF MARK IV <IV> UNIT. <Fleet Aerospace Corp> said it agreed in principle to acquire the assets and operations of the Engineered Magnetics division of Gulton Industries Inc, a unit of Mark IV Industries Inc. Terms were undisclosed. Los Angeles-based Engineered Magnetics designs and produces custom power conversion systems mainly for use in the defense and aerospace industries. Its revenues for the year ended February 28 totaled about 20 mln Canadian dlrs.  
PS GROUP <PSG>, USAIR <U> MOVE UP DEADLINE. PS Group Inc said it and USAir Group agreed to move up the completion date of USAir's acquisition of Pacific Southwest Airlines to April 30 from September 30 originally. If the acquisition does not take place by April 30, either party may terminate the agreement, the company said. The deadline has been moved up because the Department of Transportation and PS Group shareholders have already approved the transaction, the company said. A Teamsters Union agreement to certain labor contract conditions remains to be resolved under the pact.  
MERGERS, PUBLIC OFFERS SEEN AMONG CAR DEALERS. Automobile dealerships have become large, multi-store operations, and the largest sell more than 1 billion dlrs a year worth of vehicles a year. Around the auto industry there is talk of mergers and buyouts among dealerships, and there are rumors that the largest are considering offering shares to the public, analysts say. Retail car sales "are at a point of transition. There's not much that's off the table in terms of creative thinking" about ways to sell cars, says David Cole, analyst with the University of Michigan's Transportation Research Institute. The retail car market is "much more freeform now" than it was in 1956, the year things began to change, says Detroit analyst Arvid Jauppi of Arvid Jauppi and Associates. Thirty years ago, in 1956, the situation was different. Dealerships sold one kind of car--a "Chevy" or a Ford or a Studebaker. The average dealer had 17 employees and sold 738,000 dlrs worth of vehicles, according to the National Automobile Dealers Association. That year a tiny car from overseas--Germany's Volkswagen Beatle--began to gain popularity. The "Bug" caused "a rebellion" among dealers, who demanded greater freedom from restrictions placed on them by the major American automakers, says Jauppi. One of the most visible changes in retail car sales has been in the size of dealerships, auto analysts say. Last year, the average dealership had 11.2 mln dlrs in sales--a 15-fold increase from 1956--and employed 34 workers. "I had one of these guys tell me he makes six, seven mln dlrs a year and didn't know what to do with all his money," says Cole. "There's a whole lot more rich guys who sell cars than that make cars," he says. With the increase in size, large dealers have been buying up other dealerships, and auto analysts see few signs the trend will let up. Donald Keithley, vice president, dealer services, for J.D. Power, a California-based market research firm, says that, by 1990, 12,000 people will own dealerships compared to 16,800 principal owners today. Many dealers are experimenting with owning several franchises, some of which might compete against each other. "It used to be a Chevrolet dealer was a Chevrolet dealer. Now a Chevrolet dealer might handle several lines," Jauppi says. As dealers get bigger, industry officials are talking about the possibility that some of them might become publicly-owned or open international operations. Offering shares to the public is an option large dealers, "are obviously thinking of very seriously," says Cole. Although some say the franchise system might get in the way of a public offering, Jauppi says there are few obstacles to trading in car dealer shares. "Dealers are large enough now to go public. The only thing the manufacturer cares about is that the dealer sells those cars. It could happen any time," Jauppi says. "If you look at the whole merger mania, and look at the scale some of these dealers, it's going to be very hard to resist taking them public," said another analyst. And Jauppi says that dealerships can be expected to become international. "We're going to have international dealers--dealer networks that are worldwide," he says. U.S. dealers will be attracted particularly to Europe, where the market will expand faster than the U.S., he says. "It's not totally off the wall," says Cole.  
NISSAN AFFILIATE TO ACQUIRE U.S. AUTOPARTS MAKER. <Kokusan Kinzoku Kogyo Co Ltd> (KKK), a Japanese autoparts maker owned 25 pct by Nissan Motor Co Ltd <NSAN.T>, has exchanged a memorandum to acquire over 50 pct of U.S. Autoparts firm <Master-Cast Co> to avoid losses on U.S. Sales caused by the yen's rise against the dollar, a KKK spokesman said. The final agreement should be signed this year when KKK forms the new company <Alfa K Technology>, he said. The new firm should supply all the U.S. Major car makers, including Ford Motor Co <F>, General Motor Corp <GM> and Chrysler Corp <C>, he said.  
BRUSSELS - Ferruzzi says it will pay 630 mln dlrs to CPC International for European mills..  BRUSSELS - Ferruzzi says it will pay 630 mln dlrs to CPC International for European mills.  
FERRUZZI DEAL WITH CPC WORTH 630 MLN DLRS. The Ferruzzi Group's holding company Agricola Finanziara SpA will pay 630 mln dlrs for the European corn wet milling business of CPC International Inc under the agreement reached in principle between the two companies, a statement by Ferruzzi released by its Brussels office said. When CPC announced the agreement yesterday in New York, it said only that the price would be in excess of 600 mln dlrs. Ferruzzi said the deal is subject to agreement on several clauses of the contract and needs government authorisations. It said the deal would involve 13 starch factories employing about 5,000 people in eight European Community countries plus facilities and commercial operations in other EC states. The factories have a capacity to produce the equivalent of 1.6 mln tonnes of starch in starch and by-products a year, or about one third of EC production, from about 2.7 mln tonnes of cereals. Ferruzzi said the acquisition of these assets would extend its presence in the European agro-industrial industry both geographically and in terms of products. It said it is already the principal EC producer of sugar and of soya oil and cake, and the major cereal trader. It noted that EC output of isoglucose is subject to maximum quotas, of which CPC currently holds a 25 pct share, and said it foresaw an increase in other industrial uses of starch in the future, notably in the production of ethanol for fuel. Raul Gardini, president of the Ferruzzi Group, said the present management of the CPC milling business will be asked to remain in their posts.  
GUINNESS SEEKS U.K. INJUNCTION AGAINST SAUNDERS. Guinness Plc <GUIN.L> will seek an injunction in the U.K. High Court today to freeze the assets of former Chairman Ernest Saunders in its attempts to recover 5.2 mln stg paid to a Jersey company as part of the company's takeover battle for <Distillers Co Plc>, a spokesman said. He said the court move aimed to freeze Saunders' assets up to the value of the sum it wanted to recover. It was uncertain whether the court would reach any decision on the request today. Guinness said last week it planned to take legal action to recover the funds, paid to non-executive director Thomas Ward via the Jersey company. Lawyers representing Ward have said he saw the funds as his reward for services performed during the takeover of Distillers. Guinness is also planning a resolution at the annual meeting in May to remove both Saunders and Ward from the company's board.  
RAINBOW LIFTS PROGRESSIVE STAKE TO 52 PCT. <Rainbow Corp Ltd> said it has lifted its stake in supermarket group <Progressive Enterprises Ltd> to 52 pct from 44 pct. It said in a statement it has bought an extra 9.4 mln shares at prices ranging from 3.80 N.Z. Dlrs to 4.80. Progressive is currently the subject of both a proposed merger with Rainbow and a full takeover bid from <Brierley Investments Ltd> (BIL). The BIL bid, launched on Monday, is at 4.20 dlrs a share. The Rainbow merger involves shareholders in both Rainbow and Progressive being issued shares in a new company, <Astral Pacific Corp Ltd>, on a one-for-one basis. Rainbow chief executive Craig Heatley said, "In our opinion BIL's actions over the last few days have been undertaken for their own strategic purposes which conflict with the desire of both companies to merge their interests." BIL has said it is against the merger because it sees Progressive shares as being worth twice as as much as Rainbow's. Progressive traded today at 4.42, Rainbow at 3.66 and BIL at 4.30 at the end of morning trading on the New Zealand Stock Exchange.  
DART GROUP RAISES SUPERMARKETS GENERAL <SGL> BID. <Dart Group Corp> said it has raised its offer to acquire Supermarkets General Corp to 42.00 dlrs in cash and three dlrs in exchangeable preferred stock per Supermarkets General share from 41.75 dlrs per share in cash. The company said it would also be willing to negotiate a plan with the Supermarkets General board under which Supermarkets General shareholders would have a common stock interest in the combined company.  It said it remains willing to negotiate all terms of the proposed acquisition. The original bid was worth about 1.62 billion dlrs. Dart said the preferred stock in the new bid would be exchangeable for a new class of Supermarkets General debt securities that would be developed by Dart and Supermarkets. The new proposal would be subject to approval by the Supermarkets General board, it said.  The new bid was contained in a letter to the Supermarkets General board. In Woodbridge, N.J., Supermarkets General -- responding to a previous letter to its board by Dart -- said "Your conduct indicates to us that no transaction involving trust and confidence can be entered into with you.  Your propaganda and missstatements will not panic our board." Dart, in its previous letter, had alleged that Supermarkets General executives were seeking millions of dollar in severance and tax payments from Dart.  
E.D. And F. MAN TO BUY INTO HONG KONG FIRM. The U.K. Based commodity house E.D. And F. Man Ltd and Singapore's Yeo Hiap Seng Ltd jointly announced that Man will buy a substantial stake in Yeo's 71.1 pct held unit, Yeo Hiap Seng Enterprises Ltd. Man will develop the locally listed soft drinks manufacturer into a securities and commodities brokerage arm and will rename the firm Man Pacific (Holdings) Ltd.  
DURIRON <DURI> COMPLETES VALTEK <VALT> PURCHASE. Duriron Co Inc said it has completed the acquisition of Valtek Inc for 11.75 dlrs per share following Valtek shareholder approval yesterday.  
DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER.  DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER  
DIXONS GETS ONLY 20 PCT OF CYCLOPS <CYL> IN BID. <Dixons Group PLC> said only about 852,000 shares of Cyclops Corp common stock, or 20 pct on a fully diluted basis, were tendered and not withdrawn under its bid for all shares that expired yesterday, but the companmy has still decided to accept all shares validly tendered. The company said it now has about 22 pct ownership of Cyclops on a fully diluted basis and expects to proceeds toward completion of its proposed acquisition of Cyclops. Last week, before extending its Cyclops offer for one week at the request of the Securities and Exchange Commission, Dixons had reported that 54 pct of Cyclops' stock had been tendered in response to its 90.25 dlrs per share offer which expired at 2400 EST yesterday. Yesterday, CAYACQ Corp dropped certain conditions of its 92.50 dlrs a share offer for Cyclops and firmed up the financing for the proposed transaction. CAYACQ, an investor group led by Audio/Video Affiliates Inc and Citicorp, raised the value of its offer from 80 dlrs per Cyclops share on Friday.  
RENOUF HAS 93.4 PCT OF BENEQUITY <BH> UNITS. <Renouf Corp International> said it now owns 93.4 pct of Benequity Holdings a California Limited Partnership. Renouf  said it has accepted for payment all 3,914,968 units of Benequity Holdings tendered in response to its 31 dlrs per unit offer. Along with the 1,449,550 units already held by Renouf, it now owns 93.4 pct of the 5,745,706 units outstanding.  
MCFARLAND <MCFE> TO BUY PETROMINERALS <PTRO>. McFarland Energy Inc said its board and that of Petrominerals Corp have approved a definitive agreement for McFarland to acquire Petrominerals in an exchange of stock. McFarland said it would exchange one common share for each 5.4 Petrominerals shares.  McFarland said former holders of Petrominerals will have a 25 pct interest in the combined company. The merger is still subject to approval by shareholders of both companies.  
TIMMINCO ACQUIRES UNIVERSAL ADHESIVES. <Timminco Ltd> said it acquired Universal Adhesives Inc, of Memphis, for undisclosed terms, in a move to expand Timminco's operations into the United States. The company said Universal Adhesives, with five U.S. plants, has annual sales of 12 mln U.S. dlrs, which will double Timminco's presence in the North American adhesives market. Timminco said Universal Adhesives will complement the company's Canadian-based industrial adhesives division and is a key step in its long-term goal for expansion in the specialty chemical field.  
WASTE MANAGEMENT ENDS TENDER OFFER FOR CHEMLAWN.  WASTE MANAGEMENT ENDS TENDER OFFER FOR CHEMLAWN  
BRIERLEY OFFER FOR PROGRESSIVE STILL VALID. <Brierley Investments Ltd>, (BIL), said its offer of 4.20 N.Z. Dlrs per share for supermarket group <Progressive Enterprises Ltd> still stands, although <Rainbow Corp Ltd> said today it has 52 pct of Progressive. BIL said in a statement it will review events on a daily basis. Rainbow announced earlier that it had increased its stake in Progressive to 52 pct from 44 pct through the purchase of 9.4 mln shares at between 3.80 and 4.80 N.Z. Dlrs per share. BIL chief executive Paul Collins said: "All Rainbow has done is to outlay a substantial amount of cash to purchase shares from parties who presumably were supportive of the merger." Rainbow has proposed a merger with Progressive to form a new company, <Astral Pacific Corp Ltd>. Under the merger, shareholders in both Progressive and Rainbow will be issued shares in the new company on a one-for-one basis. "Quite simply, Rainbow should now bid for the balance of Progressive Enterprises at 4.80 N.Z. Dlrs per share," Collins said.  
REUTERS TO BUY I P SHARP OF CANADA. Reuters Holdings Plc <RTRS.L> said it had agreed in principle to buy <I P Sharp Associates Ltd> of Toronto for 30.4 mln stg. Sharp is a time-sharing network and database company specialising in finance, economics, energy and aviation. It operates a global packet-switching network and global limits systems for foreign exchange trading. Sharp shareholders will be offered cash, shares or a mixture of the two in settlement. The acquisition, which is subject to Canadian government approval, would be through amalgamation into a specially-created company. Reuters said it had been given options by a number of Sharp shareholders covering 67 pct of the common stock pending completion of a Reuters review of the company. Sharp operates 38 offices in 20 countries. In 1986 it reported revenue of 55 mln Canadian dlrs with a pretax loss of 1.6 mln compared with a 1.9 mln profit in 1985. However, Sharp said that internal accounts showed the company was in profit in the first two months of 1987. End-1986 net assets totalled 11.85 mln dlrs. A Reuters statement said the acquisition would fit perfectly into its package for the banking and securities industries.  
WASTE <WMX> ENDS OFFER FOR CHEMLAWN <CHEM>. Waste Management Inc said its wholly owned subsidiary, WMX Acquisition Corp, ended its tender offer to buy shares of ChemLawn Corp at 35 dlrs a share. All shares tendered to Waste Management will be returned to shareholders as soon as practical, it said. Earlier this week, ChemLawn agreed to accept a merger proposal at 36.50 dlrs a share from Ecolab Inc in a transaction valued at about 370 mln dlrs.  
UNITED MEDICAL <UM> TO SELL UNIT. United Medical Corp said it has reached a definitive agreement to sell its hospital distribution unit to <Myriad Group Inc> for undisclosed terms, with closing expected in the next several weeks.  
CROSSLAND SAVINGS <CRLD>ACQUIRES WESTERN SAVINGS. CrossLand Savings FSB said it has acquired Western Savings and Loand Co with the assistance of the Federal Savings and Loan Insurance Corp. CrossLand said Salt Lake City based Western has been combined with its two Florida-based thrift subsidiaries. The parent company contributed 50 mln dlrs in cash to the resulting 1.7 billion dlr asset subsidiary which will operate under the name CrossLand Savings FSB with headquarters in Salt Lake City. CrossLand said Western, with assets of 400 mln dlrs, operated 13 branch offices in the states of California, Oregon, Utah and Washington. To facilitate the acquisition, CrossLand said, Western was converted from a mutual to a stock association in a voluntary supervisory conversion. Crossland and the FSLIC executived an assistance agreement indemnifying CrossLand from certain losses that could occur in connection with Western's loan portfolio. The company said James J. Heagerty, chairman and chief executive officer of CrossLand Savings FSLA in Bradenton, Fla., will serve in that capacity for the new subsidiary resulting from the merger. Western's president, Christopher J. Sumner, will be president of the combined unit, CrossLand said.  
COMMERZBANK TO ACQUIRE AND FLOAT LINOTYPE. Commerzbank AG <CBKG.F> said it will acquire <Linotype GmbH>, Europe's largest manufacturer of type-setting and printing communications technology from Allied Signal Inc <ALD.N> and float off the shares in the company. Commerzbank declined to say how much it had paid for Linotype. Linotype's group turnover in 1986 rose 15 pct to more than 500 mln marks, the bank said. The group's net return on capital was seven pct.  
THERMO PROCESS <TPSI> ACQUISITION TERMINATED. Thermo Process Systems Inc said its proposed acquisition of the Surface Combustion Division of privately-held <Midland-Ross Corp> has been terminated because mutually satisfactory terms could not be established.  
STOCKHOLDER SYSTEMS <SSIAA> MAKES ACQUISITION. Stockholder Systems Inc said it has agreed in principle to acquire privately-held Software Concepts Inc, which provides software for check processing, mortgage application processing and safe deposit box accounting, for undisclosed terms. Software Concepts had revenues of about 3,200,000 dlrs for the year ended June 30.  
TRAVELERS <TIC> UNIT TO BUY REALTY DIVISIONS. The Travelers Corp's Travelers Mortgage Services said it signed a letter of intent to buy two subsidiaries of the privately-held <Equitable Life Assurance Society of the U.S.> The company said it plans to acquire the Equitable Relocation Management Corp and the Equitable Realty Network Inc. The company said the acquisitions will give it broader distribution of its corporate relocation service and mortgage programs.  
DALLAS INVESTOR CUTS STAKE IN MCDERMOTT (MDR). A group led by Dallas investor Harold Simmons told the Securities and Exchange Commission it had reduced its stake in McDermott International Inc by one pct, to under five pct. The group had said in a March 10 filing, announcing acquisition of 5.4 pct of the firm's stock, that it might consider seeking control of the company.  
NOVAMIN SAYS IT RECEIVED PROPOSED TAKEOVER BID FROM BREAKWATER.  NOVAMIN SAYS IT RECEIVED PROPOSED TAKEOVER BID FROM BREAKWATER  
NOVAMIN IN PROPOSED BUYOUT BY BREAWATER <BWRLF>. <Novamin Inc> said it received a proposed takeover offer from Breakwater Resources Ltd involving a swap of one Breakwater share for two Novamin common shares. It said the proposal also called for conversion of outstanding Novamin warrants into Breakwater common shares on the same basis, provided the exercise price was paid by the warrant holders. Novamin, a mineral exploration company, said directors would meet next Tuesday to deal with the proposal, which, it said, was subject to approval by Breakwater directors.  
COMMONWEALTY REALTY <CRTYZ>, BAY <BAY> END TALKS. Commonwealth Realty Trust said preliminary merger talks with Bay Financial Corp have been terminated due to a failure to agree on terms.  
HADSON <HADS> TO ACQUIRE 85 PCT OF SEAXE <SEAX>. Hadson Corp said it has signed a definitive agreement to acquire 85 pct of the outstanding common stock of Seaxe Energy Corp. The company said it will buy the 85 pct interest in Seaxe from shareholders owning restricted or controlled shares for less than 200,000 Hadson common shares. It said closing is subject to the approval of title assignments by the French government.  Seaxe is involved in oil and natural gas exploration and development in the Paris Basin of France.  
REUTERS TO BUY I P SHARP OF CANADA. Reuters Holdings Plc <RTRS.L> said it had agreed in principle to buy <I P Sharp Associates Ltd> of Toronto for 30.4 mln stg. Sharp is a time-sharing network and database company specialising in finance, economics, energy and aviation. It operates a global packet-switching network and global limits systems for foreign exchange trading. Sharp shareholders will be offered cash, shares or a mixture of the two in settlement. The acquisition, which is subject to Canadian government approval, would be through amalgamation into a specially-created company. Reuters said it had been given options by a number of Sharp shareholders covering 67 pct of the common stock pending completion of a Reuters review of the company. Sharp operates 38 offices in 20 countries. In 1986 it reported revenue of 55 mln Canadian dlrs with a pretax loss of 1.6 mln compared with a 1.9 mln profit in 1985. However, Sharp said that internal accounts showed the company was in profit in the first two months of 1987. End-1986 net assets totalled 11.85 mln dlrs. A Reuters statement said the acquisition would fit perfectly into its package for the banking and securities industries.  
CONSOLIDATED NOREX TO ACQUIRE TRIWEB RESOURCES. <Consolidated Norex Resources Ltd> said it agreed to acquire all issued and outstanding shares of Triweb Resources Ltd, a privately held oil and gas company with land holdings and production base in Alberta and Saskatchewan. The company said specific details relating to purchase price and other terms will be released on closing of the transaction, expected by May 15.  
REICHHOLD CHEMICALS INC EXPLORING POSSIBLE SALE OF EUROPEAN SUBSIDIARY.  REICHHOLD CHEMICALS INC EXPLORING POSSIBLE SALE OF EUROPEAN SUBSIDIARY  
REICHHOLD <RCI> EXPLORING SALE OF EUROPEAN UNIT. Reichhold Chemicals Inc said it is exploring the sale of its stake in its European subsidiary Reichhold Chemie AG. Reichhold Chemie Ag, headquartered in Rausen, Switzerland, had sales in excess of 75 mln dlrs last year. It is 83 pct owned by Reichhold. The rest is owned by German and Swiss shareholders. Reichhold said it is seeking the sale to focus on its adhesives business.  
UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT".  UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT"  
UAL <UAL> SAID TRUMP TALKED WITH UAL CHAIRMAN. Real estate magnate Donald Trump told UAL Inc Chairman Richard Ferris that he was interested in UAL stock as an investment, according to a UAL executive. Trump, who was unavailable for comment, is believed by market sources to have a sizeable position in UAL, which he began accumulating several weeks ago. UAL stock today was up three at 63 in active trading. "They (ferris and Trump) talked last week. Apparently, Trump said he was interested in it as an investment. He didn't say how much stock he had. He didn't say what he would or wouldn't do about it," said UAL senior vice president Kurt Stocker. Trump is believed to have close to five pct of UAL's stock, market sources said.  
SYNALLOY <SYO> ENDS PLANS TO SELL UNIT. Synalloy Corp said it has ended talks on the sale of its Blackman Uhler Chemical Division to Intex Products Inc because agreement could not be reached. The company said it does not intend to seek another buyer.  
C-I-L ACQUIRING TRIMAC'S STAKE IN TRICIL. <C-I-L Inc> said it would exercise its right to acquire <Trimac Ltd>'s stake in their jointly owned Tricil Ltd for 91 mln dlrs, with closing expected May 22. C-I-L added that the final price could be less, however, depending on an Ontario court ruling resulting from a previously reported legal action launched by C-I-L. Mississauga, Ontario-based Tricil is a waste management company with operations in the U.S. and Canada.  
PANTERA'S <PANT> TO BUY TEN PIZZA RESTAURANTS. Pantera's Corp said it agreed to buy ten pizza restaurants in southeastern Colorado from creditors foreclosing on the facilities. The purchase price includes 1.25 mln dlrs in cash and company stock, it said. Separately, Pantera's said it issued an area development agreement with a franchisee group for northeastern Colorado, including the Denver area, for the opening of about 20 franchised Pantera's pizza restaurants.  
ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY.  ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY  
ALLIED-SIGNAL <ALD> TO SELL LINOTYPE UNIT. Allied-Signal Inc said it agreed to sell its Linotype Group unit to <Commerzbank AG> of West Germany for an undisclosed amount. Allied-Signal said Commerzbank is expected to offer shares of the unit to the public later this year. The company said the agreement is subject to approval by the government and its shareholders. The Linotype unit, based in Eschborn, West Germany, had revenues in 1986 of more than 200 mln dlrs, the company said. The company said top management of Linotype plan to remain with the unit, which has operations in the United States, West Germany and the United Kingdom. Allied-Signal announced in December that it planned to sell the Linotype unit as well as six other businesses in its electronics and instrumentation segment. Linotype is a supplier of type and graphics composition systems.  
MESSIDOR TO MERGE WITH TRITON BELEGGINGEN. Messidor Ltd said it signed a letter of intent to acquire 100 pct of the outstanding shares of Triton Beleggineng Nederland B.V., a European investment portfolio management company. If approved, two mln shares of stock held by the Messidor Ltd officers and directors would be issued to Triton shareholders. Triton will become a subsidiary of Messidor, it said. If approved, the president of Triton, Hendrik Bokma, will be nominated as chairman of the combined company. There are about 1.5 mln Messidor units issued to the public consisting of one share of common stock, four Class A common stock warrants, four class B common stock warrants and four class C common stock warrants. In addition there are four mln restricted shares outstanding. Messidor said the acquisition is expected to be completed by June three.  
TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES.  TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES  
INVESTORS INCREASE STAKE IN FROST, SULLIVAN. One of a pair of private investors in Frost and Sullivan Inc told the Securities and Exchange Commission he increased his stake in the firm by about two pct, to 15.4 pct. He is Theodore Cross, Princeton, N.J., editor of Business and Society Review. The other investor is Mason Slaine, Cos Cob, Mass, president of Dealers' Digest Inc.  He holds a 3.3 pct stake. Cross told the SEC he bought the new shares at between 7.75 and 8.0 dlrs.  
TWA <TWA> SELLS POSITION IN USAIR <U>. Trans World Airlines Inc sold four mln shares it held in USAir Group Inc, Wall Street sources said. The sources said the buyers are believed to be a group of institutions. Bear Stearns handled the trade. It crossed the four mln shares at 45, off 1/8. Bear Stearns would not comment on buyers or sellers. USAir and TWA had no immediate comment. USAir later said it did not buy the stock. A company spokesman would not comment further. TWA earlier this month reported holding slightly more than four mln shares, or about 15 pct of USAir. It had also proposed a takeover of USAir, which at the time was negotiating its proposed merger with Piedmont Aviation Inc. On March 16, TWA withdrew its bid, saying it did not intend to seek control of USAir Group or to acquire more of its stock at the time. TWA also said in the filing with the Securities and Exchange Commission that its chairman, Carl Icahn is the target of an SEC probe of alleged violations of securities laws. In its filings with the SEC, TWA said it paid 178.2 mln dlrs for its USAir stock. "With this out of the way, if it indeed was bought by institutions, it paves the way for better value for USAir stock later," said Janney Montgomery analyst Louis Marckesano of TWA's sale of its stock. "Technically, as long as that block was overhanging the market you didn't know what was going to happen," he said. USAir stock was trading at 44-3/8, off 3/4 on volume of 4.4 mln shares. TWA stock rose one to 28-1/4.  
GATEWAY SPORTING BUYS INNOVATIVE DENTAL. Gateway Sporting Goods Co said it acquired all of the shares of stock of Innovative Dental Services Inc for an undisclosed amount of cash. Gateway said the acquired company has contracts with 102 dentists in 144 locations.  
CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK.  CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK  
BELGIUM PLANS TO OUTLAW INSIDER TRADING. A Belgian finance ministry spokesman said new rules planned on insider trading would enable offenders to be fined and imprisoned for up to a year, and be compelled to forfeit gains. The new rules require parliamentary approval, and government sources said it was unclear when they would come into force. Insider trading is currently not an offence in this country. The cabinet approved a separate bill that analysts said includes provisions to make more difficult the build-up of major new stakes in Belgian companies. The bill would make obligatory the declaration of major stakes in companies quoted on the bourse with own resources of more than 200 mln francs. The Minister for Economic Affairs would need to be informed in advance of deals under which foreign interests planned to buy a new stake of more than ten pct of the voting shares in a large Belgian company, or to increase an existing stake to more than 20 pct.  
OWENS-CORNING FIBERGLAS <OCF> SELLS FOAM UNIT. Owens-Corning Fiberglas Corp said it sold its controlling interest in its French foam insulation producing subsidiary to a Lafarege Corp <LAF> subsidiary. Owens-Corning said it sold its interest in Sentuc Porxpan SA for an undisclosed price.  
CYCLOPS <CYL> SAYS DIXONS APPOINTEES RESIGN. Cyclops Corp said the three members of its board appointed last week by <Dixons Group PLC> had resigned and that it named three Cyclops executives to replace them. Cyclops said the moves followed the announcement earlier today by Dixons that it received only 20 pct of Cyclops outstanding common stock under an extended tender offer that expired yesterday. Dixons initially ended its 90.25 dlr a share tender offer on March 17 after receiving 54 pct of Cyclops shares. However, the Securities and Exchange Commission last Friday pressed Dixons to reopen the offer because the U.K.-based company had dropped a condition that at least 80 pct of Cyclops stock be tendered by the close of the offer. Dixons then extended the offer until yesterday and earlier today indicated that a substantial number of tendered Cyclops shares had been withdrawn, leaving it with only 852,000 shares, or just over 20 pct of the roughly 4.26 mln Cyclops shares outstanding. Dixons said today that it purchased the tendered shares, which, when combined with the shares it already holds, gives it a 21.7 pct stake in Cyclops. Cyclops said its reconstituted board includes the three newly named directors and five outside directors, all of whom were on the board prior to Dixons tender offer. The three Cyclops directors were replaced by Dixons appointees on March 17 under an agreement reached between the two companies.  
FIRST FEDERAL DELAWARE AGREEMENT EXTENDED. <First Federal Savings Bank> of Delaware said its agreement to negotiate exclusively for its sale with <Oxford Financial Group> has been extended until April 8 from March 18. The company said it is in the final stages of talks with Oxford over the terms of the proposed acquisition.  Under a nonbinding letter of intent signed in June 1986, Oxford would pay 11 dlrs per First Federal share, subject to First Federal shareholder approval.  
EDELMAN GROUP IN PLAN TO BUY MORSE SHOE <MRS>. A group led by New York investor Asher Edelman said Morse Shoe Inc agreed to provide it confidential company information and that his group would make an offer to buy Morse only in a friendly, negotiated deal. The group also said in a filing with the Securities and Exchange Commission that its members would not, without Morse approval, buy or offer to buy any company securities giving the group a 10 pct or more stake in the company. Edelman and his group said his terms held until the earlier of 90 days from March 3 or the date on which Morse announces a definite agreement for its sale. At the same time, the Edelman group said it cut its stake in Morse to 8.4 pct from 9.7 pct.  
HUSKY <HYO> SETS MEETING TO APPROVE MERGER. Husky Oil Ltd said the board called a special meeting for April 22 for shareholders to vote on its previously announced agreement for Hong Kong-based Hutchison Whampoa Ltd and Hongkong Electric Holdings Ltd to acquire a 43 pct interest in the company. The acquisition requires two-thirds approval by Husky shareholders other than <Nova, An Alberta Corp>, which owns a 57 pct interest in Husky. If approved by shareholders, the amalgamation will take effect April 30, Husky said. Following completion, Oil Term Holdings Ltd, a new company controlled by Nova, will hold a 43 pct stake in Husky. Hutchison and Hongkong will indirectly hold 43 pct, Victor T.K. Li will own nine pct and <Canadian Imperial Bank of Commerce> will have a five pct interest. Husky said a special committee of five outside directors recommended the board approve the transaction after determining that the deal was in the best interests of Husky and fair to shareholders. Husky previously announced shareholders will have the option to receive 11.80 Canadian dlrs cash for each common, or 6.726 dlrs cash and one common share of Oil Term Investment Ltd, which will be controlled by Nova through Oil Term Holdings and own an insterest in Husky. U.S. shareholders will be restricted to the right to receive 11.80 Canadian dlrs cash per share, which will be paid in U.S. funds, the company said.  
HELM <H> SELLS ADDITIONAL SHARES IN BAMBERGER. Helm Resources Inc said that, pursuant to the exercise of an overallotment option by underwriters in Bamberger Polymers INc's initial public offering, it has sold another 35,000 Bamberger shares and reduced its ownership in Bamberger to 51 pct from 55 pct. To date, Helm has sold 435,000 Bamberger's for 3.5 mln dlrs. Bamberger has sold a total of 600,000 shares and received net proceeds of about 4.8 mln dlrs since the February 1987 offering.  
MINE SAFETY <MNES> SELLS SOUTH AFRICA UNIT. Mine Safety Appliances Co said it will sell through its German subsidiary, Auergesellschaft, its controlling interest in MSA (Africa), (PTY) Ltd, of Johannesburg, South Africa to Boart International, a wholly- owned subsidiary of Anglo American Corp of South Africa Ltd <ANGL>. The company said the terms of the sale were not disclosed. The company will operate as Boart-MSA (PTY) Ltd, it said. L.N. Short Jr, president of the company, said it sold the unit because of slumping profits due to South Africa's economic decline.  
U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING.  U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING  
ALLIS-CHALMERS <AH> SELLS SWISS UNIT. Allis-Chalmers Corp said it has sold its Elex Ag unit in Zurich, Switzerland, to private investors for an undisclosed amount. The company said Elex produces electrostatic precipitators used in air pollution control.  
U.S. SECURITIES GROUP BACKS INSIDER RESTRAINTS. The Securities Industry Association backed a variety of restraints on insider trading and hostile corporate takeovers and asked Congress to define insider trading in law. The industry trade association called on U.S. securities firms to take steps to protect sensitive corporate secrets to guard against illegal trading by employees. The association also backed broad federal restrictions on a variety of tactics used in hostile corporate takeovers. But it said investment banking firms should be allowed to continue to engage in both arbitrage and merger and acquisition activities so long as those functions were kept separate. The SIA, in a report adopted yesterday by its board of directors, backed a higher enforcement budget for the federal Securities and Exchange Commission and called on U.S. stock exchanges to beef up their supervision of member brokerages. The report said securities firms "should be more rigorous in restricting sensitive information on a need-to-know basis." It said firms should train their employees to understand the need for confidentiality of market-sensitive information. It said legislation to define insider trading should avoid expanding current law in a way that would impede the market. It said an insider trading definition should exempt a securities firm from liability for law violations by its employees unless the firm had participated in or was aware of the wrongdoing. In the mergers and acquisitions area, the association advocated a ban on greenmail payments or poison pill takeover protection plans without prior shareholder approval. It said a group or individual buying up a company's stock should be required to file a public disclosure statement before acquiring more than five pct of the company's shares. Under current law, disclosure may be made as late as ten days after exceeding the five pct limit. The association said all purchases exceeding 20 pct of a company's voting stock shouls be made only through a tender offer open to all shareholders. Under current law there is no limit on open market purchases. The group said the federal government should preempt state regulation of defensive takeover tactics. The group said all tender offers should remain open for at least 30 calendar days. The current requirement is expressed in business days. It said so-called "lockup" devices, in which securities are issued to a friendly investor to seal a takeover deal or fend off an unfriendly predator should be limited to 18.5 pct of the target company's total common stock. Association president Edward O'Brien said the group acted out of concern over the ad hoc restructuring of corporate America on Wall Street and investor fears about insider trading and fairness in the marketplace.  
LEAR SIEGLER HOLDING CORP PLANS TO DIVEST AEROSPACE SUBSIDIARY.  LEAR SIEGLER HOLDING CORP PLANS TO DIVEST AEROSPACE SUBSIDIARY  
LEAR-SIEGLER HOLDING TO DIVEST AEROSPACE UNIT. Forstmann Little and Co said Lear Siegler Holding Corp plans to divest its aerospace group subsidiary, comprised of the Defense Electronics Group and the Components Group. Divestitures had been expected since Lear-Siegler, a diversified conglomerate, was acquired last December in a 2.1- billion-dlr-leveraged buyout by the Wall Street firm of Forstmann Little. Lear's aerospace group revenues for fiscal 1987 are expected to be about 700 mln dlrs, said Forstmann. The Defense Electronics Group designs and manufactures weapons, management systems, flight control systems, remotely piloted vehicles and reference and navigation systems, mainly for military markets. The Defense Group subsidiaries are Astronics Corp, which is based in Santa Monica, Calif., and employs 1,076 people; Instrument and Avionic Systems Corp, based in Grand Rapids, Mich., and employs 3,479 people; International Corp, based in Stamford, Conn., and employs 266 people; and Development Sciences Corp, based in Ontario, Calif., and employs 237 people. The Components Group manufactures pumps, bearings, and other industrial components as well as nuclear control drive rod mechanisms and valves. The Group's subsidiaries include Power Equipment Corp, based in Cleveland, which employs 880 people; Energy Products Corp, based in Santa Ana, Calif., which employs 755 people; Romek Corp, based in Elyria, Ohio, which employs 262 people; and Transport Dynamics in Santa Ana, which employs 254 people. Overall, Lear's Aerospace Group's eight subsidiaries employs 7,200 people. Lear Siegler said it plans to retain Management Services Corp, engaged in aircraft maintenance modification for various Department of Defense agencies. Morgan Stanley and Co will act as financial advsiors for the group's divestitures. Last month, Lear Siegler said it planned to sell its Smith and Wesson handgun business, Starcraft Recreational Products Ltd, the Peerless truck trailer operations, and other units, as part of its restructuring plans. Lear apparently will retain its Piper Aircraft unit.  
RUBBERMAID <RBD> COMPLETES ACQUISITIONS. Rubbermaid Inc said it completed the previously announced acquisitions of Viking Brush Ltd, a Canadian maker of brushes, brooms and other cleaning aids, and the Little Tikes' manufacturing licensee in Ireland. Terms were not disclosed. The acquisition of the Tikes' licensee is part of the expansion of Little Tikes in the European toy market.  
MODULAIRE <MODX> BUYS BOISE HOMES PROPERTY. Modulaire Industries said it acquired the design library and manufacturing rights of privately-owned Boise Homes for an undisclosed amount of cash. Boise Homes sold commercial and residential prefabricated structures, Modulaire said.  
KANSAS CITY SOUTHERN INDUSTRIES SAYS IT EAGER TO PURCHASE SOUTHERN PACIFIC RAILROAD.  KANSAS CITY SOUTHERN INDUSTRIES SAYS IT EAGER TO PURCHASE SOUTHERN PACIFIC RAILROAD  
FED APPROVES CHEMICAL BANK ACQUISITION OF TEXAS COMMERCE BANCSHARES.  FED APPROVES CHEMICAL BANK ACQUISITION OF TEXAS COMMERCE BANCSHARES  
KANSAS CITY <KSU> READY TO BUY SOUTHERN PACIFIC. Kansas City Southern Industries Inc said it is ready to promptly purchase the Southern Pacific Transportation Co from Santa Fe Southern Pacific Corp <SFX> if the Interstate Commerce Commission rejects Sante Fe's attempt to reopen the merger of Southern and the Atchison, Tokepa and Santa Fe Railway. In a filing with the ICC late today, the company outlined four conditions of its offer to acquire Southern Pacific. Among the conditions are that Santa Fe enter into an agreement to indemnify Kansas City for any contigent liabilites of Southern Pacific existing as of the closing date, and that the financial condition of Southern remain largely unchanged from today onward. "We are willing, even eager, to make a fair market value offer in cash for the Southern Pacific," said Kansas City Southern president and chief executive officer Landon H. Rowland. "This offer disproves the constant derogation of the Sourthern Pacific by SFSP management, best exemplified by SFSP Chief Executive John Schmidt's comment in ICC hearings that the Southern Pacific was 'bankrupt,'" said Rowland. He said that merging Southern with Kansas City will achieve the benefits of an end-to-end merger while preseving the independece of the Southern Pacific versus its existing prime competitor, Santa Fe. Kansas said that Southern's management had estimated the value of the railroad in 1983 in the range of 281 mln dlrs to 1.2 billion dlrs. It said that Morgan Stanley and Co Inc and Salomon Brothers Inc, hired in 1983 to advise Southern and Santa Fe in their merger, appraised Southern as worth between 500 mln dlrs and 800 mln dlrs less than Southern's own internal valuations. Kanasa City Southern said it will make an offer for Southern after its books, records and properties are examined. "Once that examination has been completed (and even in the absence of a willingnes of SFSP to negotiate) KCSI will make an offer in writing...." said the company. Kansas also said it argued in the ICC filing that Santa Fe had not met the legal requirements justifying the Commission's reconsideration of the proposed merger of Santa Fe and Southern Pacific, two railroads that it said basically parallel each other throughout their routes. ICC voted four to one last summer to reject the merger as inherently anticompetitive. Kansas said Santa Fe in petitioning for reconsideration now argues that the trackage agreements with the Union Pacific, the Denver and Rio Grande Western and other railroads, adds to the value of the merger.  
GENCORP <GY> BID COULD BE RAISED, GROUP SAYS. An investor group said it might be willing to raise its 100 dlr per share offer for GenCorp but so far the company has turned down requests for a meeting. "We might be able to see some additional value if we could meet" and get more financial data, said Joel Reed, speaking for the investor group. Reed told Reuters that GenCorp chairman A. William Reynolds "was not interested in sitting down and talking with us at this time." Cyril Wagner sought the meeting in a recent telephone conversation with Reynolds, Reed said. Wagner and Brown, along with AFG Industries Inc <AFG>, recently launched a surprise tender offer for GenCorp. The offer is worth 2.23 billion dlrs. Reed said under the circumstances the 100 dlr per share tender offer, which expires April 15, is a fair offer. GenCorp gained 3-1/2 to 114 today on the NYSE. Reed outlined a plan to reshape GenCorp in the event his group wins control. He said aerospace, soft drink bottling and entertainment units are potential divestiture candidates. He said the tire business, which the group wants to keep, may be more viable if merged with another tire company. "One option would be to try to grow the tire business through combination or an acquisition," Reed said. He said he believes such a merger could create a stronger force in the tire industry. Gary Miller, chief financial officer of AFG, said his company has a record of acquiring mature businesses and boosting productivity. Automation and incentives tied to profit sharing have been used with success, he said. In the case of GenCorp's RKO General broadcasting stations, Reed said the plan of the partners is to step into GenCorp's shoes and proceed with plans to  sell the stations. The partners said if they succed in acquiring GenCorp they intend to consummate sale of WOR-TV in New York to MCA Inc <MCA>. GenCorp last year entered into an agreement to sell the station for 387 mln dlrs. The partners also said if they acquire Gencorp they would also proceed with the proposed sale of KHJ-TV in Los Angeles to Walt Disney Co <DIS>. RKO General would receive 217 mln dlrs and Fidelilty Television, which challenged the license, would get about 103 mln dlrs. The partners also said the Federal Communications Commission established an expedited schedule for receiving comments on their request for special temporary authorization of proposed trust arrangements while the FCC considers a formal application for transfer of the broadcast unit. Reed said he was pleased with the expedited schedule because it provides time for the agency to act on the request before the expiration of the tender offer. He said it was the aim of the partners to move as quickly as possible to eliminate uncertainty surrounding the stations. Asked about criticism of the takeover attempt voiced by some municipal officials in Akron, Ohio, where GenCorp is headquartered, Reed said, "the plan of the partners offers long term growth for Ohio." He noted that the aerospace business, slated for divestiture under the partners' plan, is located in California. "Our program is one that overall would provide the greatest long term growth for all segments," he said.  
FED APPROVES CHEMICAL NEW YORK <CHL> MERGER. Chemical New York Corp and Texas Bancshares Inc <TCB> said the Federal Reserve Board approved their proposed 1.19 billion dlr merger. The companies also said the Securities and Exchange Commission declared effective as of March 24 the registration statement covering the securities Chemical will issue to Texas Bancshares shareholders as part of the merger. The companies said they expect to complete the merger, which will create a bank with 80 billion dlrs of assets, by the end of the second quarter. The merger still requires shareholder approval.  
CAMPBELL RESOURCES <CCH> UPS MESTON LAKE STAKE. Campbell Resources Inc said it raised its voting stake in <Meston Lake Resources Inc> to about 64 pct from 52 pct through acquisition of another 870,000 Meston Lake shares in its previously reported takeover bid. Campbell, in its bid that expired March 23, offered 80 cts cash and 1.25 "legended" Campbell shares for each Meston share. The legended shares are not tradeable for one year. It said the 3.4 mln Meston shares not tendered in the offer were held by about 550 stockholders, including Quebec's La Societe de developpement de la Baie James, with 1.3 mln shares.  
METROBANC <MTBC> SHAREHOLDERS APPROVE MERGER. Metrobanc, a federal savings bank, said its shareholders approved the previously announced merger with Comerica Inc <CMCA>, a bank holding company. Metrobanc said the merger is still subject to regulatory approval.  
CLABIR <CLG>, AMBRIT <ABI> CALL OFF MERGER. Clabir Corp and AmBrit Corp said they called off their plans for Clabir to buy the 16 pct voting interest in AmBrit that it does not already own. The companies said they agreed not to pursue the merger because several actions recently taken by AmBrit would mean substantial delays in completing the deal. They said they might revive merger plans at a later date or seek other ways for Clabir to increase its holdings in AmBrit.  
DAILY TELEGRAPH IN DEAL WITH NEWS INTERNATIONAL. <Hollinger Inc> said 58 pct-owned <The Daily Telegraph PLC>, of London, agreed to form a joint venture printing company in Manchester, England with <News International PLC>. Financial terms were undisclosed. It said the deal involved News International's acquisition of a 50 pct stake in the Telegraph's Trafford Park Printing Ltd subsidiary. The joint company will continue to print northern editions of the Telegraph and Sunday Telegraph, with spare capacity used to print The Sun and News of the World. The arrangement will significantly cut Telegraph costs, Hollinger said.  
GENOVA <GNVA> SIGNS DEFINITIVE MERGER AGREEMENT. Genova Inc said it signed a definitive agreement for the previously announced merger with <Genova Products Inc>. Under the agreement, Genova Products will pay 5-3/8 dlrs a share for the 29 pct of Genova's outstanding common shares it does not already own. The company said it plans to complete the transaction, which requires shareholder approval, by the end of March.  
BP says it will tender for remaining 45 pct of Standard Oil at 70 dlrs a share cash.  BP says it will tender for remaining 45 pct of Standard Oil at 70 dlrs a share cash  
BP TO OFFER 7.4 BILLION DLRS FOR STANDARD SHARES. British Petroleum Co Plc <BP.L> said it intended to make a tender offer for the 45 pct of Standard Oil Co <SRD.N> it does not already own at 70 dlrs a share cash, for a total of 7.4 billion if the offer is fully accepted. The offer would be made through its <BP North America Inc> unit and was intended to commence not later than April 1. The offer would not be conditional on any minimum number of shares being tendered. BP said in a statement the 70 dlr a share price was based on its own valuation as well as those of its financial advisers. It took into account reviews of both public and non-public information. Standard closed in New York last night at 64-7/8 dlrs, down 1-3/4 dlrs. BP shares dropped on the announcement to 877p from 888p at last night's close. About a third of the cash payable would be met from BP's own resources. The remainder would come from new borrowings, partly from banks under a four-year committed revolving credit facility and partly from a a new U.S. Dlr commercial paper programme. The company said it was in the course of arranging these facilities. BP Chairman Sir Peter Walters said that the group's investment in Standard was its largest single asset. Full ownership would enable investment and operating decisions to be made without the limitations of a minority interest. BP also believed the acquisition represented the optimum use of its financial resources. It was confident oil prices were likely to remain within a range sufficient to justify the investment. Walters added that it also felt that, due to management changes in 1986, Standard could now operate successfully even in a lower oil price environment. Standard's net assets at end-1986 were 7.02 billion dlrs and in the year it reported a loss of 1.08 billion dlrs before tax and before an extraordinary item of 608 mln dlrs. Analysts said that the move by BP had come as a surprise. One noted that it was not immediately clear why the group should spend so much money buying a company it already controlled. BP could also have bought up the remainder of Standard shares considerably cheaper had it moved six months ago. It was also unclear what effect the tender would have on the U.K. Government's recent announcement that it intended to dispose of its remaining 31.7 pct stake in BP sometime in the 1987/88 financial year, analysts said. Analyst Paul Spedding of brokers Kleinwort Grieveson noted that any effect on the government sale of its stake in BP would depend on the reaction of the markets. The deal would probably push BP's gearing up to around 59 pct from 20 pct currently, he said. However, with the likelihood that oil prices would not repeat last year's rapid drop the prospects for Standard returning to profitability this year -- and BP benefitting from its cash flow -- were good. Standard was a high cost oil producer, the analysts noted. Spedding noted that it needed about 12 dlrs a barrel to make money, and at about 15 dlrs a barrel revenue from production and its downstream activities would push it comfortably into surplus. BP initially took a stake in Standard following the discovery of oil in Alaska's Prudhoe bay in 1969. BP had inadequate distribution facilities in the U.S. While Standard, which was strong on marketing and refining, was short on crude oil. The analysts said that BP had promoted a major management reorganisation of Standard in the past year. The probability that much of the shake-up at Standard was now complete was one possible factor behind the timing of the tender offer, Spedding said. BP's willingness to take hard decisions such as major balance sheet write offs and the sale of assets had been well received in the markets. The lower costs that should now be possible -- especially after the rationalisation of the loss making minerals division -- should allow the benefits of an oil price recovery to come straight through to 1987 profits without being cut back by other sectors.  
BP units seek five billion dlr revolving credit to support Standard Oil tender.  BP units seek five billion dlr revolving credit to support Standard Oil tender  
BP UNITS SEEK FIVE BILLION DLR REVOLVING CREDIT. BP International and BP North America are seeking a five billion dlr, four year syndicated credit facility in support of British Petroleum Co Plc's tender offer for the 45 pct of Standard Oil Co it does not already own, Morgan Guaranty Trust Co of New York said as arranger. The facility, to be guaranteed by British Petroleum Co Plc <BP.L> is probably the largest credit facility ever arranged in Europe, bond analysts said. Full terms will be announced either later today or tomorrow morning. BP said earlier it planned a tender offer for the 45 pct of Standard it does not already own for 70 dlrs a share cash. The financing being arranged by Morgan Guaranty will take the form of a fully committed revolving credit. As announced earlier, BP also is arranging a U.S. Commercial paper program in connection with the tender and part of the revolver will be used to support that program. The exact size of the U.S. Program has not been decided and the dealers have not yet been chosen. The credit facility will also allow the borrower to issue cash advances with maturities of one, three or six months through a tender panel, which will be comprised of banks committed to the facility. Despite the unprecedented size of this euromarket facility, Morgan Guaranty said that it was being syndicated only among BP's relationship banks. As a result, banks were being offered lead manager status at 200 mln dlrs, co-lead management at 125 mln and manager at 75 mln. Although pricing on many credit facilities has become extremely fine in recent years because of the keen competition to win mandates, Morgan Guaranty said banks would be compensated fairly since this is a special purpose facility which must be completed quickly, with signing expected in about 10 days.  
FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY. One of two rival firms seeking to enter Japan's international telecommunications market said it will offer a stake in the company to 10 foreign firms. President of <International Telecom Japan Inc> (ITJ), Nobuo Ito, decline to specify what share the firms would take, but told Reuters they would not participate in its management. ITJ and <International Digital Communications Planning Inc> (IDC), in which both Cable and Wireless Plc <CAWL.L> and Pacific Telesis Group <PAC.N> own 20 pct stakes, are set to merge into a new entity to compete against <Kokusai Denshin Denwa Co Ltd> (KDD). The Ministry of Posts and Telecommunications has urged the two rival firms to merge so KDD would have only a single competitor. The ministry has also rejected foreign management. Japan's law limits foreign ownership of any new international telecommunications entrant to 33 pct, so C and W's and Pacific's stakes could be three pct in the merged firm, sources said. Those seeking to join are General Electric Co <GE.N>, Ford Motor Co <F.N>, <Citibank NA>, BankAmerica Corp <BAC.NYSE>, <Shearson Lehman Bros Inc>, <Saloman Brothers>, <Asia Boeing Computer Service>, Unisys Corp <UIS.N>, <Societe Generale> and Deutsche Bank AG <DBKG.FRA>. The merger plan has been criticised for excluding foreign firms from a meaningful position in the market. The U.K.'s Prime Minister Margaret Thatcher, U.S. Secretary of State George Shultz, U.S. Commerce Secretary Malcolm Baldrige and U.S. Trade Representative Clayton Yeutter have all expressed such opposition. Japanese Prime Minister Yasuhiro Nakasone will draft a reply to the criticism following further discussion, a Posts and Ministry official said.  
COMMISSION APPROVES RAINBOW/PROGRESSIVE MERGER. The Commerce Commission has approved a proposed merger between <Progressive Enterprises Ltd> and <Rainbow Corp Ltd>, Rainbow said in a statement. The merger involves the formation of a new company <Astral Pacific Corp Ltd> which will acquire all shares in both companies on a one-for-one share exchange basis. Rainbow earlier this week lifted its stake in Progressive to 52 pct from 44 pct. The statement said a new private company, <Transcapital Corp Ltd>, fully owned by Rainbow directors Craig Heatley, Gary Lane and Ken Wikeley, will purchase this stake for an undisclosed cash sum. The Commission has also approved Transcapital acquiring up to 45 pct of Astral Pacific, Rainbow said. <Brierley Investments Ltd>, which has been a frequent critic of the merger, launched a full bid for Progressive at 4.20 N.Z. Dlrs a share last Monday.  
MICKELBERRY <MBC> COMPLETES SALE OF UNIT. Mickelberry Corp said it has completed the previously-announced sale of the 51 pct of its C and W Group subsidiary that it had retained to N W Ayer Inc for undisclosed terms. Ayer bought the other 49 pct next year. Mickelberry said it will report a gain on the transaction.  
PHILIPS ELECTRICAL SELLS STAKE IN UNIDARE. <Philips Electrical (Ireland) Ltd> has arranged the sale of the one mln ordinary shares it holds in its subsidiary <Unidare Aluminium Ltd>, Unidare said. The placing has been arranged through <Allied Irish Investment Bank Plc> at an ex-dividend price of 371 Irish pence per share.  
FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC.  FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC  
FOOTE MINERAL <FTE> TO MERGE INTO RIO TINTO. Foote Mineral Co said it has signed a letter of intent to merge into <Rio Tinto-Zinc Corp PLC> for cash. The company said at the time of the acquisition, its assets will include only lithium and ferrosilicon operations. Foote, which is 83 pct owned by Newmont Mining Corp <NEM>, has signed a letter of intent to sell its Cambridge operations and said it is in talks on the sale of its manganese operations with several companies.  Foote said Newmont has informally indicated it would vote in favor of the Rio Tinto proposal. Foote said terms of the agreement, including price for the proposed cash transaction, have not been released because they are subject to a continuing due diligence investigation. The company said a definitive merger agreement is expected to be negotiated within six weeks and shareholders are expected to vote on the deal at a meeting expected to be held in June or July.  
ETHYL CORP <EY> UNITS COMPLETE ACQUISITON. Ethyl Corp said its subsidiaries completed the acquisiton of Nelson Research and Development Co <NELR>. The merger was approved following completion on Jan 27 of a tender offer valued at approximately 55 mln dlrs, the company said. It added that Nelson, based in Irvine, Calif., will be operated as a wholly-owned subsidiary of Ethyl. Nelson designs and develops new drugs, Ethyl said.  
BP <BP> TO HOLD NEW YORK PRESS CONFERENCE. British Petroleum Co PLC said it has scheduled a New York press conference for 1300 EST/1800 gmt today at which senior management will discuss the company's proposed acquisition of the 45 pct of Standard Oil Co <SRD> that it does not already own for 70 dlrs per share. The offer is worth about 7.4 billion dlrs.  
MCO <MCO>, MAXXAM <MXM> HOLDERS APPROVE MERGER. MCO Holdings Inc said its shareholders and those of MAXXAM Group Inc have approved the proposed merger of the two companies. MCO said one MAXXAM shareholder has filed an objection to the proposed settlement of shareholder actions related to the merger in the Delaware Court of Chancery. A hearing on the settlement proposal is scheduled for March 27... The merger is subject to court approval of the settlement as well as to other conditions.  
NEOAX <NOAX> TO SELL NOVATRONICS FOR 20 MLN DLRS. Neoax Inc said it has agreed to sell the assets and business of its Novatronics Division to Veeco Instruments Inc <VEE> for 20 mln dlrs. Neoax said it expects a gain of about nine mln dlrs on the transaction which is expected to becomleted during the second quarter, adding the gain will be sheltered by its tax loss carryforwards. Novatronics makes military-specification power supplies and avionics components for various prime government defense contractors. It had 1986 sales of 21 mln dlrs.  
STANDARD <SRD> REFERRING BP <BP> BID TO GROUP. Standard Oil Co said British Petroleum Co Plc's proposed offer of 70 dlrs a share for the 45 pct of Standard's stock not held by BP is being referred to a special committee of the company's board. This committee, which is composed of the independent, non-exective directors of the company, was formed in April 1986 for the purpose of monitoring the relationship between Standard Oil and BP. Standard said the group will consider BP's offer in due course noting the committee has retained the First Boston Corp and Cravath Swaine and Moore as advisers.  
FOOTE MINERAL TO MERGE INTO RIO TINTO. Foote Mineral Co said it signed a letter of intent to merge into Rio Tinto-Zinc Corp PLC for cash. Foote, 83 pct owned by Newmont Mining Corp, said Newmont has informally indicated it would vote in favor of the Rio Tinto proposal. Foote said terms of the agreement, including price for the proposed cash transaction, have not been released because they are subject to a continuing due diligence investigation. The company said a definitive merger agreement is expected to be negotiated within six weeks and shareholders are expected to vote on the deal at a meeting expected to be held in June or July.  
CROSS AND TRECKER <CTCO> BUYS AUTOMATION UNIT. Cross and Trecker said it agreed to acquire the Alliance Automation Systems division of Gleason Corp <GLE> for an undisclosed amount of cash. It said the Gleason division manufactures automated assembly and test systems used in the production of small to medium size components for a number of industries, including automotive, electronic and appliance. Alliance Automation had 1986 sales of about 35 mln dlrs and employs 200.  
BLOCKBUSTER <BBEC> TO ACQUIRE LICENSEE. Blockbuster Entertainment Corp said it agreed to buy <Southern Video>, a Blockbuster licensee in San Antonio. Blockbuster said it will issue 80,460 shares of its common stock for all the net assets of Southern Video. The company said after the acquisition is complete, it intends to open additional Blockbuster Video Superstores in the San Antonio market.  
CONTEL <CTC> TO BUY WALKER COUNTY TELEPHONE. Contel Corp said it has agreed in principle to acquire <Walker County Telephone Co> of LaFayette, Ga., for an undisclosed amount of common stock. Walker has 7,600 customers in northeast Georgia. The company said the agreement is subject to approval by regulatory agencies, both boards and Walker shareholders.  
THERMO PROCESS <TPSI> COMPLETES ACQUSITION. Thermo Process Systems Inc said it completed its purchase of Thermo Process Services Inc, a subsidiary of Thermo Electron Corp <TMO>. Thermo Process Systems said it issued 2,590,000 shares of its common stock to Thermo Electron in connection with the sale.  
SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.. Siemens AG's <SIEG.F> fully-owned subsidiary Siemens Informations Systems Inc. Has raised its stake in Telecom Plus Communications Inc. By 65 pct to 100 pct, a Siemens spokesman said. He added that Telecom Plus Communications was the largest independent supplier of telephone exchange systems in the U.S. And had achieved a turnover of 234 mln dlrs in 1986. The stake had been acquired from Telecom Plus International Inc. The spokesman declined to comment on U.S. Newspaper reports that the purchase price of the remaining stake totalled 173 mln dlrs.  
MICHIGAN GENERAL <MGL> TO SELL KRESTMARK UNIT. Michigan General Corp said it agreed to sell substantially all of the assets and certain liabilities of its Krestmark subsidiaries to LCB Holdings Inc for 6.5 mln dlrs cash. Sale of Texas-based Krestmark, a maker of doors, door frames and other products, will allow Michigan General to concentrate on retailing through its Diamond Lumber and Savannah Wholesale units. Proceeds of the sale will be used to reduce debt. The deal is subject to execution of a definitive agreement. Krestmark had revenues of about 40 mln dlrs and operating losses of three mln dlrs in 1986, the company said. It has been accounted for as a discontinued operation since last September. Dallas-based LCB is a privately-held maker of structural steel joists and rack and storage handling systems. Michigan General also said its Diamond Lumber homebuilding products retail unit closed nine unprofitable stores in the first quarter and reduced its headquarters staff by 10 pct. The nine closed stores, which had pretax operating losses of 1.7 mln dlrs in 1986, are being sold to provide cash for operations. About 4.5 mln dlrs of inventory from the stores is being transferred to other locations, the company said.  
RABBIT SOFTWARE <RABT> TO MERGE WITH CTI DATA. Rabbit Software Corp said it agreed in principle to merge with <CTI Data Inc>, a privately owned communications company. According to terms, CTI holders and employees will receive 200,000 shares of Rabbit stock and royalties on sales of CTI Products. CTI will become a wholly owned subsidiary of Rabbit. The deal is subject to completion of a definitive merger agreement, receipt of third party approvals and other conditions, the company said.  
USAIR GETS APPROVAL TO BUY 9,309,394 PIEDMONT SHARES IN TENDER.  USAIR GETS APPROVAL TO BUY 9,309,394 PIEDMONT SHARES IN TENDER  
SIEMENS REBUTTS U.S. CRITICISM ON CGCT OFFER. Siemens AG <SIEG.F> rebutted U.S. Criticism it is blocking American Telephone and Telegraph Corp's <T.N>, AT and T, entry into French telecommunications firm <Compagnie Generale Constructions Telephoniques>, CGCT. Management board member Hans Baur told journalists that the acquisition of a joint 20 pct stake in CGCT by AT and T and Philips Gloeilampenfabrieken NV <PGLO.AS> had not been decided on two years ago as claimed by AT and T. The French government, which owns CGCT, had asked Siemens at the start of 1986 to submit an offer for the stake in CGCT. The result of the negotiations was still open. Baur said Siemens had first made an offer last summer. The Handelsblatt newspaper today quoted AT and T chairman James E. Olson as saying that Siemens' attempt to stop AT and T and Philips could lead to a resurgence of protectionism in the U.S. Baur said he expected the French government to decide on the winning bid by the end of April. CGCT's share of the French switchboard market amounts to around 16 pct. The French government has limited CGCT participation by foreign companies to 20 pct and set a price of 500 mln francs for the whole company. Bauer said the 20 pct limitation would only apply to the initial stake. He did not rule out a stake increase later but said Siemens' aim was to introduce its technology. Bauer said Siemens and French telecommunications firm <Jeumont-Schneider SA> submitted a joint offer at the start of March because of the 20 pct limitation. Both companies will form a joint venture to take over the whole of CGCT. Siemens will have a 20 pct stake in the new company while Jeumont-Schneider will own 80 pct. Apart from investing 100 mln francs for the modernisation of CGCT, a new research centre with was also being planned.  
USAIR <U> CLEARED TO BUY PIEDMONT <PIE> SHARES. USAir Group Inc said the U.S. Department of Transportation has issued an order allowing it to purchase and hold in a voting trust the 9,309,394 Piedmont Aviation Inc shares USAir is seeking in its current 69 dlr per share tender offer. The company said the new order supersedes an order issued by the department last Friday that would have required USAir to sell within one week of expiration of the tender any Piedmont shares it held in excess of 51 pct of the Piedmont stock then outstanding. The company said the 9,309,394 Piedmont shares, together with the 2,292,599 Piedmont shares already owned by USAir, constitute about 50.1 pct of Piedmont's shares on a fully-diluted basius but about 61.0 pct of shares currently outstanding. The shares are to be held in a voting trust pending the department's review of USAir's application to obtain control of Piedmont.  
FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY. President Nobuo Ito of International Telecom Japan Inc (ITJ), one of two rival firms seeking to enter Japan's international telecommunications market, said it will offer a stake in the company to 10 foreign firms. But he declined to specify what share the firms would take, and told Reuters they would not participate in its management. ITJ and International Digital Communications Planning Inc (IDC), in which both Cable and Wireless Plc and Pacific Telesis Group own 20 pct stakes, are set to merge into a new entity to compete against Kokusai Denshin Denwa Co Ltd.  
SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.. Siemens AG's <SIEG.F> fully-owned subsidiary Siemens Informations Systems Inc. Has raised its stake in <Telecom Plus Communications Inc.> by 65 pct to 100 pct, a Siemens spokesman said. He added that Telecom Plus Communications was the largest independent supplier of telephone exchange systems in the U.S. And had turnover of 234 mln dlrs in 1986. The stake had been acquired from Telecom Plus International Inc. The spokesman declined to comment on U.S. Newspaper reports that the purchase price totalled 173 mln dlrs.  
FIRST INTERSTATE SEEKS ACQUISITION. Less than two months after First Interstate Bancorp withdrew its bold attempt to buy BankAmerica Corp, Chairman Joseph Pinola is still looking for a good buy, but he is also looking at ways to avoid being bought. In a wide-ranging interview, Pinola said he's looking for ways to improve profitability and capital between now and 1991, "so as to resist any potential look at us...to maintain our independence, if possible." In 1991 federal regulatory changes will allow the major East Coast banks to buy banks in California. First Interstate, the fourth largest California bank, and the nineth largest nationwide, owns 24 banks in 12 western states and has franchise operations in four additional states. Bank industry sources say it is an attractive target for large U.S. or foreign banks, looking to quickly move into the lucrative California market and the West Coast region. While declining specifics on his corporate strategy, when asked if acquisitions will be part of the plan, Pinola replied, "That's undoubtedly a fair statement...it would be almost naive not to think that." Pinola characterized his acquisition strategy as "opportunistic". He said he will look for banks in management trouble that he can get at a bargain, then add management to restore profitability, or for banks in states where First Interstate already operates, then cut costs by combining resources. The exception, he said, would be Texas, where he said most of the banks are already well managed, but might be purchased at a discount because of the depressed regional economy. Pinola declined comment on what circumstances might move him to rekindle his bid for BankAmerica, saying only, "We continue to monitor and look at a lot of things and a lot of people continue to monitor and look at us." Banking analysts, however, consider another First Interstate bid at BankAmerica a long shot, not likely to happen any time soon. Pinola called his decision last month to withdraw his 3.25 billion dlr bid at the nation's second largest bank, "a very, very difficult decision." With that decision made, however, he acknowledged First Interstate may now have a difficult time keeping its number four position in the California banking community. "The competition in this state is tough," he said, noting CityBank's recent purchase of 50 financial service branches from Sears Roebuck company. "CityBank is moving rapidly to move us down to fifth and Wells Fargo down to fourth," he said. Outside California, Pinola acknowledged that Security Pacific Corp, with its recent acquisitions in Arizona, Washington and Oregon, is quickly becoming a regional competitor in areas where First Interstate has long dominated. "Security is, has been and continues to be a highly profitable and obviously well managed company," he said. He added, however, First Interstate, at the moment, has the advantages of having owned and managed regional banks longer and has the recognition advantage of having given its regional banks a common name. Pinola said while its coastal state banks are in good financial condition, First Interstate continues to sustain serious loan losses in its Rocky Mountain states, where energy, real estate and agriculture dominate the economy. Asked if he thought loan losses in those areas had peaked, he said, "I don't think it has bottomed out, because I think most of the problems are real estate-related and the real estate problems are going to be with us for several years." Pinola said another failing economic sector, agriculture in the Midwest, has slowed expansion of First Interstate's franchise operation. First Interstate has 42 franchise banks that offer First Interstate financial services in ten states. While a year ago he was considering taking his franchise operation east of the Mississippi River, Pinola said because most of the franchise banks are now in the West, expansion into the Midwest must come first. Calling the franchise system, "moderately profitable," Pinola said, "It is going to take a rejuvenation of the agriculture sector for us to commence franchising at the speed we were generating before the last year or two." On the banking industry in general, Pinola said he thinks 1987 will be another bad year for loan losses, with only banks with minimal holdings in real estate able to improve profits.  
KODAK <EK> BUYS STAKE IN BIOTECHNOLOGY COMPANY. Eastman Kodak Co said it has reached an agreement to acquire new stock representing a 16 pct interest in industrial biotechnology company <Genencor Inc> for undisclosed terms. Other Genencor shareholders include Staley Continental Inc <STA>, Corning Glass Works <GLW> and Genentech Inc <GENE>. The company said it has been granted options to increase its equity stake during 1987.  It said it has agreed to make a multiyear, multimillion dollar commitment to Genecor research products related to food additivies and pharmaceutical intermediates.  
GOULD<GLD> COMPLETES SALE OF FRENCH BATTERY UNIT. Gould Inc said it has completed the sale of its French battery business, Compagnie Francaise D'Electro Chimie, to a group of investors including the unit's employees and <GNB Inc> of Minnesota. Gould did not disclose terms of the deal. Gould said the move is part of its previously announced plan to divest assets unrelated to its computer and electronics businesses.  
FIRST WISCONSIN <FWB> TO BUY MINNESOTA BANK. First Wisconsin Corp said it plans to acquire Shelard Bancshares Inc for about 25 mln dlrs in cash, its first acquisition of a Minnesota-based bank. First Wisconsin said Shelard is the holding company for two banks with total assets of 168 mln dlrs. First Wisconsin, which had assets at yearend of 7.1 billion dlrs, said the Shelard purchase price is about 12 times the 1986 earnings of the bank. It said the two Shelard banks have a total of five offices in the Minneapolis-St. Paul area.  
<MERIDIAN ENERGY>, CASTONE END LETTER OF INTENT. <Meridian Energy Inc> and Castone Development Corp, a privately-held company, jointly announced that they have decided to terminate the letter of intent under which Meridian would have acquired Castone.  
FED'S HELLER URGES BROAD REFORM TO AID BANKING. Federal Reserve Board Governor Robert Heller said the banking system could be strengthened by permitting formation of financial services holding companies involved in areas like banking, insurance, real estate and securities. In a speech prepared for delivery in New York to the Bank and Financial Analysts' Association, Heller said, "I believe that increased diversification along geographic and product lines is the key to strengthening the American banking system." He said he supported the idea of financial services holding companies advocated by the Association of Bank Holding Companies in which regulation of various bank, thrift, insurance, investment, securities and real estate subsidiaries would be handled on functional lines. "Limits would be placed on the extension of credit by the bank to the associated institutions, and all transactions would have to be on an arms-length basis," Heller said. Measures would be necessary to avoid abuse of the banks' special position by such holding companies or subsidiaries. Heller said he "would require the holding company to serve as a 'source of strength' to the bank by making a commitment to maintain the bank's capital. "In other words, the bank would not be allowed to fail as long as the holding company has a positive net worth." Heller also said commercial enterprises should be permitted to own a financial services holding company, again with the provision that capital would flow to the financial enterprise if necessary. Heller said the effects of these actions "would be banks that are at least as strong as the corporations holding them" in which customer deposits were assured while any incentive to "loot the bank" was removed. Such diversification would give access to national and international financial services to corporations across the United States. Heller said that would mean "the steady decline of America's banks in the world financial league tables would be arrested" by permitting them to become more competitive.  
GOULD <GLD> SELLS FRENCH BATTERY UNIT. Gould Inc said it sold its French Battery unit, Cie Francaise d'Electro Chimie, to a group of investors including the unit's employees and <GNB Inc> of Minnesota. Terms of the sale were not disclosed. The unit had 1986 sales of 65 mln dlrs.  
FIDELITY <FNF> UNIT ACQUIRES CALIFORNIA CONCERN. Fidelity National Financial Inc said its Fidelity National Title Insurance Co subsidiary acquired the operations of Safeco Title Insurance Co in the northern California counties of Alameda, Contra Costa and San Mateo. Terms of the acquisition were not disclosed.  
BP MANAGING DIRECTOR SAYS COMPANY DOES NOT PLAN TO HIKE 70 DLRS STANDARD OFFER.  BP MANAGING DIRECTOR SAYS COMPANY DOES NOT PLAN TO HIKE 70 DLRS STANDARD OFFER  
SECURITY <SPC>, USERS, END MERGER TALKS. Security Pacific Corp and <Users Inc>, a credit union data processing concern, said they have mutually agreed to withdraw from further merger negotiations. Users said that since it signed a letter of intent to merge with Security in November, it has received a strong show of support for continuing the credit union ownership of the company with credit unions committing themselves to purchase additional Users common. Users also said it is in the strongest financial position in its 24-year history.  
DENNISON MANUFACTURING <DSN> TO SELL PAPER UNIT. Dennison Manufacturing Co said it has signed a letter of intent to sell its Dunn Paper Co subsidiary to James River Corp <JR> for an undisclosed amount of cash, resulting in a first quarter charge against earnings. The company saiud the loss on the sale may be partly reduced by contingent payments over the next five years and will in the first quarter be more than offset by the gain from the previously-announced sale of its Hygeia Sciences Inc shares. Dunn had sales last year of about 65 mln dlrs. In Richmond, Va., James River said closing is expected by the end of April, subject to approval by both boards and on the reaching of satisfactory labor agreements.  
LOUISIANA-PACIFIC <LPX> TO SELL SAWMILL. Louisiana-Pacific Corp said it plans to sell its sawmill in Lakeview, Oregon and 18,000 acres of timberland to Ostrander Construction Co. The company said the transaciton shoould be finalized in early April. Terms were not disclosed.  
SUBURBAN BANCORP <SUBBA> MERGER APPROVED. Suburban Bancorp Inc said it received approval from the Federal Reserve Board to acquire <Valley National Bank of Aurora> for an undisclosed price. Suburban said it has received shareholder tenders for 100 pct of Valley National's stock.  
FAIR LANES <FAIR> SHAREHOLDERS APPROVE MERGER. Fair Lanes Inc said its shareholders approved the previously announced merger with Maricorp Inc, a unit of <Northern Pacific Corp>. Under terms of the merger, Fair Lanes said each of its shares of common stock will be converted into the right to receive 1.3043 shares of <BTR Realty Inc>, which is owned by Fair Lines.  
CB AND T <CBTB> TO MAKE ACQUISITION. CB and T Bancshares Inc said the board of Carrolton State Bank of Carrolton, Ga., has approved a merger into CB and T for an undisclosed amount of stock, subject to approval by regulatory agencies and Carrolton shareholders. Carrolton has 26 mln dlrs in assets.  
FIRST FINANCIAL <FFMC> BUYS CONFIDATA. First Financial Management Corp said it acquired Confidata Corp, a unit of <North Ridge Bank>, paying 500,000 dlrs in cash and pledging a guarantee on a 500,000 dlr Confidata note held by North Ridge. First Financial, which provides data processing services to community banks and other financial institutions, said the acquisition will expand its customer base.  
COMBUSTION ENGINEERING <CSP> UNIT IN BUYOUT. Combustion Engineering Inc said its C-E Environmental Systems and Services Inc unit agreed in principle to acquire <E.C. Jordan and Co>, a privately held firm based in Portland, Me. Terms of the acquisition were mot disclosed. Combustion Engineering said C-E Environmental, which provides environmental sciences and management services, had 1986 sales of about 24 mln dlrs.  
LOMAK <LOMK>, STRATA <STRATA> IN MERGER PACT. Lomak Petroleum Inc and Strata Corp, based in Columbus, Ohio, jointly said they entered into a merger agreement for Strata to become a wholly owned subsidiary of Lomak. Under the merger's terms, Strata shareholders will receive 5.7 cts per share of Strata common and warrants to buy about .06 shares of Lomak common at 37.5 cts per share on or before December 31, 1990, for each Strata common share. The merger is subject to approval by the companies' boards and shareholders and agreement of certain Strata creditors, among other things, said the companies.  
AMERICANTURE <AAIX> BUYS AMERICAN ADVENTURE. Americanture Inc said it has purchased American Adventure Inc <GOAQC> for cash, the assumption of liabilities and the issuance of American Adventure Inc common and preferred stock to creditors, shareholders and members. The acquisition was pursuant of a Chapter 11 reorganization plan of American Adventure. The company said the transaction involved assets valued at more than 83 mln dlrs.  
VIACOM <VIA> SETS RECORD DATE FOR MERGER VOTE. Viacom International Inc said it set April 6 as the record date for shareholders entitled to vote at a special meeting to be held to vote on the proposed merger of Arsenal Acquiring Corp, a wholly-owned subsidiary of <Arsenal Holdings Inc> into Viacom. It said the date of the special meeting has not yet been determined.  
CHAVIN RAISES STAKE IN MYERS (MYR). Chicago real estate developer Leonard Chavin told the Securities and Exchange Commission he had raised his stake in the L.E. Meyers Co Group to 11 pct from 9.7 pct. He also said an investment banker repesenting him met with Myers' officers, telling them of his plans for a takeover and that he may solicit proxies for a seat on Myers' board. Chavin also said if he takes control of the firm, it could result in delisting Meyers' from the New York Stock Exchange. He told the SEC that while he is trying to buy or acquire the firm, he still may only hold the shares for an investment.  
MCINTYRE MINES <MP> COMPLETES UNIT SALE. McIntyre Mines Ltd said it completed the previously announced sale of all shares of wholly owned Smoky River Coal Ltd and certain related assets to Smoky River Holdings Ltd for a nominal cash consideration. McIntyre did not specify the cash amount of the sale. Smoky River Holdings is an Alberta company controlled by Michael Henson, former president and chief executive of McIntyre, the company said. McIntyre said it retained an unspecified royalty interest in Smoky River Coal based on net operating cash flows from the company's coal properties. McIntyre also said it provided a three mln dlr last recourse letter of credit to the Alberta government for Smoky River Coal's reclamation obligations. The credit letter expires either when Smoky River completes three mln dlrs of reclaiming activities or December 31, 1992, which ever occurs first. McIntyre said it also remains contingently liable for certain obligations now totalling about seven mln dlrs, which will reduce over time as Smoky River continues to operate. McIntyre's principal asset continues to be its 14 pct interest in Falconbridge Ltd <FALCF>.  
INVESTMENT GROUP UPS STAKE IN SCANDINAVIA <SCF>. A multinational shareholder group told the Securities and Exchange Commission it increased its stake in Scandinavia Fund Inc to 35.5 pct, from 30.5 pct. The investors include Ingemar Rydin Industritillbehor AB, of Sweden, and VBI Corp, of the West Indies.  
CTC DEALER TO APPEAL CANADIAN TIRE DECISION. CTC Dealer Holdings Ltd said it would appeal a previously reported Ontario court ruling upholding an Ontario Securities Commission decision to block CTC's bid for 49 pct of <Canadian Tire Corp Ltd> common shares. CTC, a group of Canadian Tire dealers, added that it also extended its tender offer to March 31 and was seeking approval to extend its bid while the appeal court heard the case. It said Alfred and David Billes, two of Canadian Tire's controlling shareholders, backed the appeal and would seek leave to appeal while third controlling shareholder Martha Billes supported the appeal but would not join an appeal motion.  
MITSUBISHI BUYS INTO DANISH DAIRY PRODUCT FIRM. Mitsubishi Corp <MITT.TOK> said it has taken a 25 pct stake worth five mln krone in <Danish Dairy Farms Ltd> and will jointly market its produce from April. The company was set up last year by three major Danish livestock cooperative federations to expand markets for their dairy products, a Mitsubishi official said. This is the first time a Japanese trading house has traded non-Japanese dairy products in the world market, he said. He said Mitsubishi expects the Danish company's annual sales to be 10 billion yen in its first year, from April 1.  
JAPAN ACTS TO COOL U.S. ANGER ON TELECOMS DISPUTE. Japan has sought to assure the U.S. It is not trying to keep foreign equity in a new Japanese international telecommunications company below the legal limit of 33 pct, a Post and Telecommunications ministry official said. In a letter sent yesterday, Postal Minister Shunjiro Karasawa told U.S. Commerce Secretary Malcolm Baldrige that the ministry does not object to foreign participation by those U.S. Firms that have expressed interest. But it does oppose any foreign international telecommunications carrier having a management role, he said. The move appears to be an effort to dampen U.S. Opposition to the planned merger of two rival firms seeking to compete with the current monopoly <Kokusai Denwa Denshin Co Ltd>, and to reduce the share held in any KDD rival by U.K.'s Cable and Wireless Plc <CAWL.L>, industry analysts and diplomats said. One of the rival firms, <International Telecom Japan Inc> (ITJ) has offered a stake in the company to eight U.S. Firms including General Electric Co <GE>, Ford Motor Co <F> and Citibank NA <CCI), and two European companies, ITJ president Nobuo Ito said yesterday. Cable and Wireless holds a 20 pct share in a second potential KDD rival, <International Digital Communications Planning Inc>, along with <C Itoh and Co>. Merrill Lynch and Co Inc <MER> and Pacific Telesis International Inc <PAC>, both of the U.S., Hold three and 10 pct shares respectively. The Post and Telecommunications Ministry has urged the merger of the two firms because it says the market can only support a single KDD competitor. It has also rejected management participation by an international common carrier, such as Cable and Wireless, arguing no international precedent for such a stake exists. Cable and Wireless Director of Corporate Strategy, Jonathan Solomon, yesterday again told ministry officials he opposes a merger proposal that would limit Cable and Wireless' share to less than three pct and total foreign participation to about 20 pct, the ministry official said. Channeling the U.S. Firms into a single merged competitor would most probably result in diluting Cable and Wireless' share, industry analysts said. "Eventually the ministry will get what it wants -- one combined competitor," Bache Securities (Japan) Ltd analyst Darrell Whitten said. "Political ... Leverage may get the total foreign share up to a certain amount, but you won't find any one company with an extraordinarily large holding," Whitten said. Western diplomatic sources were more blunt. "They (the ministry) don't want to see Cable and Wireless with a reasonable share and they think of all sorts of strategies to reduce that share," one said. Fumio Watanabe, a senior Keidanren (a leading business organization) official who has been trying to arrange the merger, will present a new outline of his proposal on Thursday, the ministry official said.  
ASSOCIATED NEWSPAPERS HAS 10 PCT OF NORTHERN STAR. <Northern Star Holdings Ltd> said Britain's <Associated Newspapers Holdings Plc> will hold 9.99 pct of its enlarged issued capital after applying to acquire 15.9 mln shares in its recently announced placement. Associated was one of the major investors participating in the previously reported placement of 128.9 mln shares at 3.75 dlrs each, Northern Star said in a statement. The northern New South Wales regional group is emerging as a national media force in the wake of the industry restructuring sparked by the News Corp Ltd <NCPA.S> takeover of the Herald and Weekly Times Ltd <HWTA.S> group. Associated now holds 3.3 pct of Northern Star's current issued capital, a company official said. As previously reported, Northern Star is raising 623 mln dlrs through placements and a subsequent one-for-four rights issue at 2.95 dlrs a share. Of the placements, 56.9 mln shares will go to a number of investors and 72 mln to investment group <Westfield Capital Corp Ltd>, which arranged Northern Star's purchase of News Corp's television assets, three newspapers and three radio stations for 842 mln dlrs. Westfield will increase its stake in Northern Star to about 45 pct from 20 as a result.  
ALCAN AUSTRALIA BIDS FOR ALCAN NEW ZEALAND. Alcan Australia Ltd <AL.S> said it will make a 39.3 mln N.Z. Dlr cash bid for all the issued shares of <Alcan New Zealand Ltd> at 1.80 N.Z. Dlrs each with a four-for-three share alternative. Both are 70 pct owned by Canada's Alcan Aluminium Ltd <AL> which will take the share swap option, Alcan Australia deputy chairman Jeremy Davis said in a statement. The remainder of Alcan New Zealand's totalled issued 21.84 mln shares are broadly held while Alcan Australia's are primarily held by institutions. Alcan NZ last traded at 1.55 NZ dlrs, while Alcan Australia today ended four cents down at 1.15 dlrs. Davis said the offer, which is subject to approval by the New Zealand Overseas Investment Commission, was a response to the integration of the two countries' markets under the Australia-New Zealand Closer Economic Relations treaty. Alcan New Zealand shareholders who accept the offer would also receive the final dividend of 10 cents a share normally payable on May 27. Alcan Australia would invite New Zealand representation to its board and would apply to list its shares on the New Zealand Stock exchange, Davis said.  
HENKEL SELLS HAMBURG OIL AND FATS SUBSIDIARY. Applied chemicals group Henkel KGaA <HNKG.F> said it is selling its Hamburg vegetable oil and fats subsidiary Noblee und Thoerl GmbH to Oelmuehle Hamburg AG. A company spokesman declined to give the purchase price. Noblee, a supplier of specialised refined oils and fats to the food processing industry, had turnover of 161 mln marks last year. A Henkel statement said the divestment was part of the company's strategy of concentrating on its core businesses. For Oelmuehle, the acquisition of Noblee means access to new markets, the statement added.  
BRIERLEY BIDS 4.35 DOLLARS/SHARE FOR PROGRESSIVE. <Brierley Investments Ltd> (BIL) launched a full takeover bid for the supermarket group <Progressive Enterprises Ltd> at 4.35 dlrs a share. BIL said in a statement the offer is conditional on minimum acceptances totalling 30 mln shares, just under 25 pct of the 120.4 mln Progressive shares on issue. Progressive is currently involved in a proposed merger with <Rainbow Corp Ltd>. Rainbow earlier this week raised its stake in Progressive to 52 pct. BIL opposes the Rainbow merger and analysts say BIL needs a 25 pct stake in Progressive to prevent it occurring. The merger involves shareholders in Progressive and Rainbow both receiving shares in a new company <Astral Pacific Corp Ltd> on a one-for-one exchange basis. The BIL bid is higher than the 4.20 dlrs BIL said it would offer when it first announced on Monday it would make a full bid for Progressive, and it follows much public debate between BIL and Rainbow. BIL Chief Executive Paul Collins said last week that he opposes the Rainbow/Progressive merger because BIL sees Progressive shares as being worth twice as much as Rainbow's. BIL has not disclosed how many Progressive shares it holds. Rainbow has said the merger is soundly based. Chairman Allan Hawkins said last week that BIL's actions were aimed only at dirsrupting the merger and were not in the interests of Progressive shareholders. Both Rainbow's and Progressive's boards have approved the merger proposal. It has also been approved by the Commerce Commission, but BIL's bid is still subject to the Commission's scrutiny. Progressive shares ended at 4.35 dlrs, Rainbow at 3.42 and BIL at 4.17 at the close of New Zealand Stock Exchange trading today.  
UNION MINIERE TAKES STAKE IN PANCONTINENTAL. <Union Miniere SA> said in a statement that it has acquired an eight pct interest in Pancontinental Mining Ltd <PANA.S> for a sum equivalent to 1.2 billion Belgian francs. Pancontinental operates gold and coal mines in Australia and natural gas and oil fields in Canada. Union Miniere said the location of its interest within the Pancontinental group will be decided later. It did not elaborate. Union Miniere is a wholly owned subsidiary of Societe Generale de Belgique <BELB.BR>.  
DIXONS GROUP PLC BUYS 2,455,000 CYCLOPS SHARES, NOW OWNS 83 PCT.  DIXONS GROUP PLC BUYS 2,455,000 CYCLOPS SHARES, NOW OWNS 83 PCT  
DIXONS BOOSTS CYCLOPS <CYL> OWNERSHIP TO 83 PCT. <Dixons Group Plc> said it bought about 2,445,000 Cyclops Corp common shares, boosting its holdings of the company's stock to about 83 pct of those now outstanding and 79 pct on a fully diluted basis. Dixons said the stock was purchased in a single block transaction at 95 dlrs per share. The company said it expects to proceed with a merger and has advised Cyclops it intends to increas the per-share amount to be paid in the merger to 95 dlrs, form 90.25 dlrs, for each of the about 880,000 remaining Cyclops shares outstanding on a fully diluted basis.  
METROPOLITAN FINANCIAL<MPC> TO ACQUIRE COMPANY. Metropolitan Financial Corp said it signed an agreement to acquire the stock of closely held Rothschild Financial Corp, St. Paul, Minn. Details of the purchase were withheld. It said Rothschild in 1986 originated 500 mln dlrs of mortgage loans, and its loan servicing portfolio stands at 1.4 billion dlrs. Officials of both companies estimated their combined efforts could produce originations of 800 mln dlrs and a loan servicing portfolio "well over 2.0 billion dlrs by yearend."  
HANSON TRUST <HAN> U.S. ARM SELLS CHEMICAL UNIT. Hanson Trust Plc <HAN> said its U.S. subsidiary, Hanson Industries, sold PCR Inc, a specialty chemicals unit, for 6.25 mln dlrs in cash to <Chemical Partners Inc>. Hanson Industries said it acquired PCR Inc in 1986 as part of its purchase of <SCM Corp>. PCR Inc posted an operating loss in 1986 of 381,000 dlrs on sales of 13.2 mln dlrs, the company said.  
ELDERS EXTENDS OFFER FOR CARLING O'KEEFE <CKB>. <Elders IXL Ltd>, of Australia, said wholly owned IXL Holdings Canada Inc extended its previously announced offer to acquire all outstanding shares of Carling O'Keefe Ltd to midnight April 23, 1987, from March 25. The 18-dlr-a-share offer is being extended for Elders to obtain Canadian federal government approval for the acquisition of control of Carling. Elders said its application to Investment Canada is still being processed under normal review procedures. Up to March 26, 19,962,000 shares or 92 pct of Carling's stock has been deposited under the offer, Elders said. Elders also said it arranged for a credit facility of up to 390 mln dlrs, shared equally between two Canadian banks, which would be available to acquire shares under the offer.  
MULTIVEST <MVST> ENDS MERGER TALKS,SETS PURCHASE. Multivest Corp said it has ended talks on <Oryx Capital Corp>'s possible acqusition of Multivest and is starting an offer of 1.51 dlrs a share for all the oustanding shares of <T.B.C. Industries Inc>. Multivest said its T.B.C. tender offer is scheduled to expire April 30.  
RESTAURANT ASSOCIATES <RA.A> SETS 1ST QTR GAIN. Restaurant Associates Industries Inc said it expects to record a pretax gain of 3.3 mln dlrs in the first quarter from the sale and lease of real estate. The company said it received a 2.5 mln dlrs partial payment in connection with the sale of property in Manhattan and an additional one mln dlrs for early termination of the lease for its headquarters, which was relocated in February. The outstanding balance of about 8.5 mln dlrs on the sale of the property will be paid at closing scheduled for Sept 28, 1987, it said. In the first quarter ended March 31, 1986, Restaurant Associates reported net income of 313,000 dlrs or seven cts a share on sales of 40.8 mln dlrs.  
HUDSON'S BAY TO SELL WHOLESALE UNIT. <Hudson's Bay Co> said it signed a letter of intent to sell its Hudson's Bay Wholesale unit to a private investment group. Terms were not disclosed. The company said Normal Paul, a member of the private investment group, will head Hudson's Bay Wholesale management. The unit's existing management group, headed by Ron McArthur, will also participate in ownership, the company said without elaborating. The wholesale unit is a major distributor of tobacco, confectionary and other products through 34 wholesale and 28 vending branches in Canada. 1986 sales were 798 mln dlrs. Hudson's Bay said the sale of its wholesaling unit is part of a program to concentrate financial and management resources on its core business of department stores and real estate.  
SAFETY-KLEEN <SK> TO BUY MCKESSON <MCK> UNIT. Safety-Kleen Corp said it agreed in principle to acquire McKesson Envirosystems Co, a subsidiary of McKesson Corp. It said McKesson Envirosystems' current annual gross revenues are about 14 mln dlrs. The company collects flammable solvents from its industrial customers for a fee, after which it analyzes and processes the solvents before they are burned.  
CLEARWATER FINE FOODS ACQUIRES CHANNEL FOODS. Clearwater Fine Foods Inc, a Canadian company minority owned by Hillsdown Holdings PLC of London, has acquired Channel Foods Ltd, a Cornwall, England producer of chilled smoke fish and pate products, Hillsdown said. Privately held Clearwater was sold for three mln stg, the company said.  
HANSON TRUST TO SELL U.S. CHEMICALS UNIT. Hanson Trust Plc <HNSN.L> said its U.S. Subsidiary, Hanson Industries Inc, is to sell PCR Inc, a speciality chemicals unit, for 6.25 mln dlrs cash to <Chemical Partners Inc>. PCR had sales of 13.2 mln dlrs in fiscal 1986 and an operating loss of 381,000 dlrs.  
INVESTOR PAUL BILZERIAN HAS 7.2 PCT PAY 'N PAK STAKE, MAY SEEK CONTROL.  INVESTOR PAUL BILZERIAN HAS 7.2 PCT PAY 'N PAK STAKE, MAY SEEK CONTROL  
LSB INDUSTRIES <LSB> AGREES TO ACQUIRE BANK. LSB Industries Inc said it agreed to acquire Northwest Federal Savings and Loan Association for 1,500,000 dlrs. As part of the agreement, LSB said it also would transfer assets valued of not less than 30 mln dlrs to Northwest Federal, which is located in Woodward, Okla.  
BILZERIAN MAY SEEK CONTROL OF PAY 'N PAK <PNP>. Investor Paul Bilzerian disclosed he holds a 7.2 pct stake in Pay 'N Pak Stores Inc common stock and is considering seeking control of the retail building material firm. Bilzerian said he and a Tampa, Fla., investment firm he controls called Bicoastal Financial Corp "may acquire additional shares, or they may seek to acquire one or more positions on (Pay 'N Pak's) Board of directors or to acquire a controlling interest in the (company's) shares, by tender offer or otherwise." The statement was made in a filing with the Securities and Exchange Commission. Bilzerian said his course of action would depend on the company's prospects, market conditions and other factors. Bilzerian said he and Bicoastal made net purchases of 515,600 shares on the New York Stock Exchange Jan 26-March 25. His 7.2 pct stake makes up a total of 722,000 shares.  
ALLEGHENY INT'L <AG> SELLS THREE OVERSEAS UNITS. Allegheny International Inc said it sold three overseas subsidiaries to Reil Corp Ltd, a North Sydney, Australia, investment group. Terms were not disclosed. The units sold were Sunbeam Corp Ltd Australia, Sunbeam New Zealand Ltd and Victa (U.K.) Ltd. The units make and distribute various products, including lawn mowers, small appliances and sheep shearing equipment. They employ a total of about 1,750.  
HONEYWELL <HON> COMPLETES COMPUTER BUSINESS SALE. Honeywell Inc said it has completed the sale of 57.5 pct of its Honeywell Information Systems <HIS> computer business to <Compagnie des Machines Bull> of France and <NEC Corp> of Japan for 527 mln dlrs in cash. Honeywell said it will use much of the money to reduce short-term debt incurred last December when the company purchased the Sperry Aerospace Group. Honeywell said the sale of HIS has created a new dedicated computer company jointly owned by Bull, NEC and Honeywell. The new privately held company, named Honeywell Bull, is 42.5 pct owned by Honeywell Inc, 42.5 pct by Bull and 15 pct by NEC, the new company said. Honeywell added that terms of the agreement with NEC and Bull allow it to reduce its current 42.5 pct stake in the new company to 19.9 pct at the end of 1988 by selling just over half its shares to Bull. Book value at the time will determine the move's pricing, Honeywell said. Honeywell chairman and chief executive officer, Edson Spencer, said the move is the last major step in Honeywell's restructuring. "As the leading worldwide supplier of of automation and controls for buildings, industry, aerospace and defense, Honeywell is now focusing its management, technical and financial resources on high market share business," Spencer said. Honeywell said it expects to be Honeywell Bull's largest customer, purchasing computers for its own internal data processing, for integration into Honeywell buidling and industrial automation systems and for resale to the U.S. governement. Honeywell said HIS's Federal Systems Division is now a wholly owned unit of Honeywell Inc, and has been named Honeywell Federal Systems Inc. Honeywell said it accounted for HIS as a discontinued operation in 1986, and will account for its future interest on a cost basis, recording any dividends as received. Honeywell Bull said it will continue to develop its product line and build its business in integrated systems for networking, database management and transaction processing. The new company said its board will have nine members, including the chairman and chief executive officer. Bull will have four members, Honeywell two and NEC one, the new company, which began worldwide operations today, said. It added that Jacques Stern, Bull's chairman and chief executive officer, will serve as Honeywell Bull's chairman of the board, while Jerome Meyer, formerly executive vice president of Honeywell Information Systems, was named president and chief executive officer.  
SOUTHAM TO SELL 49 PCT INTEREST IN BRANDON SUN. <Southam Inc> said it agreed to sell its 49 pct interest in Sun Publishing Co Ltd, which publishes The Brandon Sun, to majority shareholder publisher Lewis D. Whitehead. Terms were not disclosed. Southam said the proposed sale resulted from an offer made by Whitehead, whose family has had majority control of the newspaper since 1905. The Brandon Sun has daily circulation of 19,100.  
FIRST SARASOTA HOLDERS APPROVE ACQUISITIONS. First Sarasota Bancorp said its shareholders approved the acquisition of its City Commercial Bank subsidiary by First Union Corp's <FUNC> First Union National Bank of Florida. The purchase price of the outstanding shares is about 8.6 mln dlrs. The transaction, subject to regulatory approval, is expected to be completed during the second quarter of 1987. After completing the City Commercial acquisition and four other acquisitions having combined assets of 248 mln dlrs, First Union will have assets of 28.6 billion dlrs.  
LSB <LSB> IN PACT TO ACQUIRE NORTHWEST FEDERAL. LSB Industries Inc said it entered into an agreement to acquire Northwest Federal Savings and Loan Association of Woodward, Oklahoma. Upon completion of the acquisition, LSB would pay about 1.5 mln dlrs to the shareholders of Northwest and transfer to Northwest Federal certain assets having a net current appraised value of not less than 30 mln dlrs. At completion of this transaction, Northwest Federal would be a subsidiary of LSB's non-consolidated wholly-owned financial subsidiary. The acquisition is subject to obtaining approvals, waivers and forbearances from the Federal Home Loan Bank Board and other government approvals.  
PLAZA GROUP COMPLETES MERGER TRANSACTION. <Plaza Group> said it completed a transaction in which it merged its wholly owned subsidiary, Flyfaire International Inc, into Shefra Inc, a public company, in return for a controlling interest in Shefra. With completion of the merger, Shefra changed its name to Flyfaire International Inc. Flyfaire, with annual sales of 100 mln dlrs, is engaged in the wholesale vacation travel business.  
HANSON <HAN> TO SELL BOND'S DELIVERY SERVICE. Hanson Industries, the U.S. arm of Hanson Trust PLC, said contracts have been exchanged in London for the sale of Bond's Delivery Service to Rockwood Holdings PLC for about 6.0 mln dlrs in cash. Completion is subject to Rockwood shareholder approval. In its most recent financial year, Bond's which was purchased by Hanson Trust Plc in its acquisition of Imperial Group PLC in April 1986, made 960,000 dlrs pre-tax profit on sales of 13.6 mln dlrs. Net tangible assets are 5.2 mln dlrs, Hanson said.  
WESTINGHOUSE INTERESTED IN MERGER OF RADIO UNIT. Westinghouse Electric Corp <WX> said it is still open to a merger of its radio operations with General Electrics Co's <GE> NBC radio operations. "We have left the door open and GE is reassessing the merger and so are we," Westinghouse chairman Douglas Danforth told Reuters at the conclusion of a meeting before analysts. Danforth said he continues to see value in a merger between Westinghouse's radio operation and those of NBC. Discussions with NBC on the merger of the two companies' radio units were suspended in December. Danforth reaffirmed that Westinghouse is interested in acquisitions, saying the company is leaning toward acquisitions in the 300 mln to 500 mln dlr range. He said, however, that larger acquisitions are possible if they are the right fit. Danforth, who earlier today said he expects earnings growth in the double-digit range through 1989, said he is comfortable with analysts' predictions of 4.80 dlrs to 5.30 dlrs a share this year. In 1986 the company earned 4.42 dlrs a share. He said the company has targeted waste energy systems and hazardous waste removal, as some of the emerging growth areas for the company.  
FRENCH MINISTERIAL MEETING HELD ON CGCT SALE. Finance Minister Edouard Balladur, Industry Minister Alain Madelin and Telecommunications Minister Gerard Longuet met for more than an hour today to discuss the imminent sale of the French telephone switching group <Cie Generale de Constructions Telephoniques>, a spokesman for Longuet said. No decision was announced as a result of the meeting, and the French government has given itself until the end of next month to choose between the candidates. The sale of CGCT, which controls 16 pct of France's telephone market, has been priced at 500 mln francs, and three international consortia are battling for the right to buy it. West Germany's Siemens AG <SIEG.F> has teamed up with the French group Jeumont-Schneider, in opposition to a bid from the U.S. Group ATT <T.N> and the Dutch Philips Telecommunications BV <PGLO.AS> in association with the French telecommunications firm SAT <Societe Anonyme de Telecommunications>. A third bid has been lodged by Sweden's AB LM Ericsson <ERIC.ST>, allied with French defence electronics group Matra <MATR.PA> and Bouygues SA <BOUY.PA>.  
BORG-WARNER UP AMID RUMORS IRWIN JACOBS SOLD STOCK, ARBITRAGEURS SAY.  BORG-WARNER UP AMID RUMORS IRWIN JACOBS SOLD STOCK, ARBITRAGEURS SAY  
MINSTAR INC SAID IT SOLD ALL 10 MLN OF ITS BORG-WARNER SHARES.  MINSTAR INC SAID IT SOLD ALL 10 MLN OF ITS BORG-WARNER SHARES  
MINSTAR INC SAID IT IS STILL INTERESTED IN ACQUIRING BORG-WARNER.  MINSTAR INC SAID IT IS STILL INTERESTED IN ACQUIRING BORG-WARNER  
CORNING GLASS WORKS<GLW> BUYS FIBER-OPTIC STAKE. Corning Glass Works said it bought a 50 pct interest in Technology Dynamics Inc, a Woodinville, Wash., company involved in research and development of fiber-optic sensors. The purchase price was not disclosed. Privately held Technology Dynamics plans to introduce its first line of fiber-optic sensors later this year, Corning Glass said.  
BTR NYLEX RAISES OFFER FOR BORG-WARNER AUSTRALIA. <BTR Nylex Ltd> said it will increase its takeover offer for Borg-Warner Corp's <BOR> listed unit, <Borg-Warner (Australia) Ltd> (BWA) to five dlrs each from four dlrs for all issued ordinary and preference shares. The new offer values the diversified auto parts manufacturer's 27.22 mln ordinary shares and 13.22 mln first participating preference shares at 202.2 mln dlrs. Formal documents will be sent to shareholders as soon as possible, it said in a brief statement. BTR Nylex, which manufactures rubber and plastic products, first bid for BWA in late January. As previously reported, Borg-Warner Corp, which owns 65 pct of BWA's ordinary shares and 100 pct of the preferences, advised a month ago that it would not accept the offer. This meant BTR Nylex's 50.1 pct acceptance condition could not be met, BWA said in a statement reporting its parent's decision. BWA advised shareholders to ignore the offer and said other parties had expressed interest in bidding for it. But no other bid has yet emerged. BTR Nylex is a 59.5 pct-owned listed subsidiary of Britain's BTR Plc <BTRX.LON>.  
INVESTOR GROUP PUTS PRESSURE ON GENCORP <GY>. An investor group trying to acquire GenCorp Inc said it would move to unseat the board of directors and take other action if GenCorp refuses to discuss a 2.3 billion dlr takeover bid. General Acquisition Co, a partnership of Wagner and Brown and AFG Industries Inc <AFG>, reiterated in a statement sent to GenCorp on Friday that it was willing to negotiate its earlier offer of 100 dlrs a share for the tire, broadcasting, plastics and aerospace conglomerate. Analysts have speculated GenCorp could fetch at least 110 to 120 dlrs per share if broken up. GenCorp officials declined to comment on the statement, but a spokesman reiterated a request to shareholders to wait until the board renders an opinion before making a decision on the offer. GenCorp has said a statement would be made on or before the company's annual meeting on Tuesday. General Acquisition said the board could not carry out its duties to shareholders and make an informed decision until it has, "... Explored with us the ways in which our offer can be revised to provide greater value to your shareholders." General Acquisition added it was aware the board may be reviewing alternative transactions, which might provide GenCorp shareholders with a payment other than cash. "If that is the case, you should recognise that our additional equity capital may very well enable us to offer cash and securities having greater value than GenCorp could provide in any similarly structured transaction," it said. It added GenCorp's board had an obligation to present any alternative proposal to shareholders in a way that allowed competing offers. General Acquisition requested it be given a chance to bid on a competitive and fair basis before any final decision was made on any other buyout proposal. The statement repeated the request GenCorp remove a "poison pill" preferred share purchase rights to shareholders, making any takeover more expensive. It said it might take legal action, or seek the support of shareholders in calling a special meeting to replace the board and consider other proposals. GenCorp should not accept any other proposal containing defensive features, it said.  
Woolworth Holdings says it bidding 244 mln stg for Superdrug stores.  Woolworth Holdings says it bidding 244 mln stg for Superdrug stores  
WOOLWORTH BIDS 244 MLN STG FOR SUPERDRUG. Woolworth Holdings Plc <WLUK.L> said it would make a 244 mln stg agreed bid for <Superdrug Stores Plc> valuing the company's shares at about 696p each. The offer would be made on the basis of 17 new Woolworth ordinary shares for every 20 in Superdrug. Woolworth said it had received acceptances from the holders of 61 pct of Superdrug shares. The bid is Woolworth's second attempt in recent months to acquire a retail chemist chain. Earlier this year it negotiated a possible bid for <Underwoods Plc> buit the talks were broken off two weeks ago. Full acceptance of the offer would involve the issue of about 29.8 mln new Woolworth shares, or 14 pct of the enlarged share capital. A cash alternative would offer 646p for each share in Superdrug. Members of the Goldstein family have accepted the offer for 11.7 mln shares, which have not been underwritten. Another major shareholder, Rite Aid Corp's Rite Investments Corp unit, had accepted the offer for 9.9 mln shares, and would take the cash alternative for 9.0 mln of these. In the year to end-January, Woolworth reported pretax profits sharply higher at 115.3 mln stg after 81.3 mln previously. In the year to end-February, Superdrug reported pretax profits of 12.26 mln after 10.36 mln previously on turnover that rose to 202.9 mln from 164.3 mln. Superdrug shares firmed to 670p from 480p on Friday. Woolworth eased to 813p from 830p.  
TESCO BUYS 5.4 PCT OF HILLARDS. Tesco Plc <TSCO.L> said <County Bank Ltd> had bought 165,000 shares in <Hillards Plc> on its behalf, increasing its stake to 5.4 pct. The shares were bought at 313.25p each. Tesco is making an opposed 151 mln stg bid for Hillards. Hillards shares at 0900 GMT were quoted one penny firmer at 317p while Tesco was one penny easier at 479p.  
WALLENBERG GROUP RAISES STAKE IN ERICSSON. Sweden's Wallenberg group said it raised its holding in telecommunications maker Telefon AB L.M. Ericsson <eric.St.> to 37.5 of the voting rights from 28.9 pct. The move by the Knut and Alice Wallenberg Foundation, one of the institutions at the core of the group of companies formed by the late industrialist Marcus Wallenberg, further consolidated group control over one of its key firms, analysts said. The foundation now controls 14.1 pct of Ericsson's voting rights with 22.3 pct held by the group's investment companies <AB Investor> and <Forvaltnings AB Providentia>. The move comes after the Wallenberg group fought off a hostile takeover bid earlier this month for match and packaging conglomerate Swedish Match AB <smbs.St> from arms and chemical concern Nobel Industrier AB <NOBL.ST> by increasing its stake in Swedish Match to 85 pct from 33 pct.  
MANNESMANN BUYS INDIRECT MAJORITY STAKE IN SACHS. Mannesmann AG <MMWG.F> said it has reached a series of agreements giving it an indirect majority stake in the <Fichtel und Sachs AG> car parts group. The takeover is contingent on approval from the Federal Cartel Office in West Berlin, a spokesman said, adding that Mannesmann was confident the authorities would not block the purchase. Mannesmann is buying 75 pct of <MEC Sachs Vermoegensholding> which owns 37.5 pct of Sachs AG, which in turn holds 96.5 pct of Fichtel und Sachs. The MEC shares will be bought from the granddaughters of the firm's founder. Mannesmann is also purchasing a 25.01 pct stake in Fichtel und Sachs from Commerzbank AG <CBKG.F> and has an option to buy the bank's remaining 10 pct stake, a company statement said. In addition to these firm agreements, Mannesmann is also talking with the state-owned steel group Salzgitter AG <SALG.H> on buying its 24.98 pct stake in Fichtel und Sachs. This would give Mannesmann around 75 pct of Fichtel und Sachs. Salzgitter said it decided to give up its own original plans to seek a majority stake in Sachs after holding talks with the government in Bonn. Earlier this month Mannesmann disclosed that it might want a majority stake in Sachs after previously saying it was seeking to buy only a minority holding in the company, which has annual turnover of 2.2 billion marks and employs 17,000. The acquisition is part of Mannesmann's efforts to diversify into high-technology areas and away from its previous reliance on steel and pipe-making. More A spokesman for the Federal Statistics Office later said the anti-cartel authorities would probably rule on the takeover in the new few weeks.  
AMYLUM CHAIRMAN DISAPPOINTED BY FERRUZZI-CPC DEAL. Belgian starch manufacturer <Amylum NV> is surprised and disappointed that its 675 mln dlr offer for the European business of CPC International Inc <CPC.N> was apparently rejected in favour of a lower 630 mln dlr bid by Italy's <Gruppo Ferruzzi>, chairman Pierre Callebaut said. Callebaut told Reuters that Amylum, a leading starch and isoglucose manufacturer in which Britain's Tate and Lyle Plc <TATL.L> holds a 33.3 pct stake, had made an undisclosed initial takeover offer for CPC's European corn wet milling business by the close of CPC's tender on March 17. The offer was raised on March 24 to a final 675 mln dlrs in cash after CPC told Amylum its initial bid was below Ferruzzi's 630 mln stg offer, Callebaut said. On the same day, CPC announced it had agreed in principle to sell its European business to Ferruzzi in a 630 mln dlr deal. Noting that Ferruzzi was studying a public offering of shares in its unit <European Sugar (France)> to fund the CPC takeover, Callebaut said Amylum may still succeed in its bid. "For the time being we just await developments. But I note that whereas our higher offer was in cash, Ferruzzi apparently is still organising finance," Callebaut said.  
INVESTOR GROUP PUTS PRESSURE ON GENCORP <GY>. An investor partnership, seeking to acquire GenCorp Inc, said it would attempt to unseat the company's board of directors and take other hostile actions if the firm refuses to discuss its 2.3 billion dlr takeover bid. General Acquisition Co, comprising investors Wagner and Brown and glass-maker AFG Industries, also reiterated its willingness to negotiate with Gencorp. The partnership has earlier offered 100 dlrs per share for GenCorp -- a tire, broadcasting, plastics and aerospace conglommerate. Analysts have speculated that GenCorp, on a break-up basis, could fetch more than 110 to 120 dlrs per share. GenCorp officials had no comment on General Acquisition's statement but a spokesman reiterated an earlier request to shareholders to wait until its board renders an opinion before making a decision on the General Acquisition tender. Gencorp said its statement would be made on or before the company's annual meeting, scheduled for Tuesday. General Acquisition made its statement in a letter sent to the GenCorp board on Friday. The partnership said it was willing to negotiate all points of its offer, including price. The group the board cannot fully carry out its fiduciary duties to GenCorp shareholders and make a fully informed decision about its offer until it has "thoroughly explored with us the ways in which our offer can be revised to provide greater value to your shareholders." General Acquisition said it is aware the board may be reviewing alternative transactions which might provide GenCorp shareholders with a payment other than cash. "If that is the case, you should recognize that our additional equity capital may very well enable us to offer cash and securities having greater value than GenCorp could provide in any similarly structured transaction," the partnership said. General Acquisition also said it believes that GenCorp's board has an obligation to present any alternative transaction it may propose to shareholders in a manner that would allow for competing offers. The partnership requested that if any other proposal is under consideration that it be given the same information available to GenCorp's managers and advisers in constructing a proposal. General Acquisition said that if GenCorp agrees to accept another buyout proposal that it also be given an opportunity to bid on a competitive and fair basis before any final decision is made. General Acquisition repeated its request that GenCorp remove its "poison pill" or shareholders rights plan. General Acquisition said if GenCorp does not allow an "environment for fair competition," it will take all steps necessary to create such an enviroment. It said it may take legal action or seek the support of shareholders in calling a special meeting to replace the board and to consider other proposals it might develop. General Acquisition also said if the board decides to accept an alternate proposal it asked that it not accept a plan that would include defensive features.  
UNITED BANKS COLORADO <UBKS> ACQUISITION CLEARED. United Banks of Colorado Inc said it has received Federal Reserve Board approval to acquire IntraWest Financial Corp <INTW> in an exhcnmage of 0.7234 United share for each IntraWest share. The company said the acquisition is still subject to 30-day review by the U.S. Justice Department and is expected to be completed in the second quarter.  
SUFFIELD'S <SSBK> COASTAL <CSBK> BUY CLEARED. Suffield Financial Corp said it has received approvcal from the Maine Bureau of Banking for its proposed acquisition of Coastal Bancorp of Portland, Maine, and the acquisition is expected to close around April One. The approval was the last regulatory clearance required for the transaction.  
MARKETING SYSTEMS <MASY> SEEKS ACQUISITIONS. Marketing Systems of America Inc said it has retained Richter, Cohen and Co to assist in efforts to redirect its business through merger or acquisition. The company said as consideration for services to be renedered, it has agreed to grant Richter five-year warrants to buy 231,000 common shares at 32 cts each, exercisable starting in March 1988, and a negotiated fee on completion of any transaction.  It said it has the right to cancel the warrants after one year if no transaction has been completed.  
SKANSKA TO TAKE STAKE IN CANADIAN FIRM. Swedish construction and real estate company Skanska AB <skbs.St.> said it will sell its 49 pct holding in Canadian building firm <Canadian Foundation Company Ltd> to rival <Banister Continental Ltd>. A company spokeswoman told Reuters Skanska will receive Banister shares as payment, giving the Swedish group 15 pct of the stock in the expanded Banister firm. She said Skanska will also be appointing two board members to the Canadian company.  
NEWS CORP LTD TO ACQUIRE HARPER AND ROW PUBLISHERS INC FOR 65 DLRS/SHARE.  NEWS CORP LTD TO ACQUIRE HARPER AND ROW PUBLISHERS INC FOR 65 DLRS/SHARE  
CANADIAN WORLDWIDE ENERGY BUYS TRITON<OIL> UNIT. <Canadian Worldwide Energy Ltd> said it acquired Triton Energy Corp's wholly owned Canadian subsidiary, Triton Petroleum Ltd, for the issue of 3.75 mln common shares of Canadian Worldwide, subject to regulatory approvals. The company said the transaction will increase Triton Energy's holding in Canadian Worldwide to 13.25 mln shrs or a 60 pct fully diluted interest from 9.5 mln shares. Triton Petroleum's assets consist of proven oil reserves of 1.3 mln barrels, exploratory acreage, and unspecified working capital and a significant tax loss carryforward. Canadian Worldwide said it is optimistic the Triton Petroleum Ltd acquisition will strengthen its financial and production base and permit acceleration of its conventional oil exploration program.  
MOBIL FRANCE TO TAKE 10 PCT STAKE IN PRIMAGAZ. Mobil Corp's <MOB> Mobil Oil Francaise unit said it will take a stake of about 10 pct in the French butane and propane gas distribution company <Primagaz> in exchange for the transfer to Primagaz of Mobil's small and medium bulk propane activity. Small and medium bulk propane sales totalled 55,000 tonnes in 1986 and the transfer will increase total business of Primagaz by about 12 pct, equal to 32,000 extra customers. A Primagas spokesman said Mobil will take the stake by means of a capital increase, terms of which have not yet been established.  
MORRISON INC <MORR> ACQUIRES CUSTOM MANAGEMENT. Morrison Inc, a diversified food service company, said it acquired Custom Management Corp, based in Kingston, Penn., for an undisclosed amount. Custom manages some 215 food contract management operations and about 65 environmental service accounts, producing about 100 mln dlrs in annual revenues.  
BOLT BERANEK <BBN> FILES FOR DEBENTURE OFFERING. Bolt Beranek and Newman Inc said it filed with the Securities and Exchange Commission a registration statement covering a 75 mln dlr issue of convertible subordinated debentures due 2012. A portion of the proceeds will be used to acquire all of the outstanding capital stock of Network Switching Systems Inc. Another part will allow Bolt to exercise its option to purchase all of the limited partnership interests in BBN RS/Expert Limited Partnership, with the rest used for general corporate purposes. The company named PaineWebber, Merrill Lynch and Montgomery Securities as underwriters.  
HENLEY GROUP SAID HAS CLOSE TO FIVE PCT OR 7.9 MLN SHARES OF SANTA FE SOUTHERN PACIFIC AS INVESTMENT.  HENLEY GROUP SAID HAS CLOSE TO FIVE PCT OR 7.9 MLN SHARES OF SANTA FE SOUTHERN PACIFIC AS INVESTMENT  
TENNECO <TGT> BUYS UNISYS <UIS> UNIT. Tenneco Inc said its Newport News Shipbuilding subsidiary has completed the purchase of the Sperry Marine Systems division of Unisys Corp for about 70 mln dlrs. Sperry Marine has annual revenues of about 100 mln dlrs.  
BIOGEN <BGENF> MAY SELL EUROPEAN OPERATIONS. Biogen NV said as part of a program to reduce expenses, it is in talks on the sale of its Geneva, Switzerland operations. The company gave no details.  
BOW VALLEY INDUSTRIES<BVI> SETS SECONDARY ISSUE. Bow Valley Industries Ltd said it filed a preliminary short form prospectus in Canada and the United States for a secondary offering of 22.8 pct of outstanding common stock, or 9,362,197 common shares, being sold by certain shareholders. The company said Bowcan Holdings Inc, a holding company principally owned by the Seaman brothers of Calgary and Charles Rosner Bronfman Trust of Montreal, is offering to sell all of its holding of 8,279,665 Bow Valley common shares. The balance of the offering is owned directly and indirectly by various trusts of Jean and Charles deGunzberg. Proceeds and expenses from the secondary offering of Bow Valley Industries common shares are for the account of the selling shareholders, the company said. The shareholders will engage Salomon Brothers Inc for distribution of the shares in the United States and McLeod Young Weir Ltd for distribution in Canada.  
ALLEGHENY INTERNATIONAL SELLS WILKINSON SWORD GROUP FOR 230 MLN DLRS.  ALLEGHENY INTERNATIONAL SELLS WILKINSON SWORD GROUP FOR 230 MLN DLRS  
HENLEY <HENG> HAS SANTA FE SOUTHERN <SFX> STAKE. Henley Group said in a 10-K filing with the Securities and Exchange Commission that it has 7.9 mln shares or close to five pct of Santa Fe Southern Pacific Corp, a spokesman said. In response to questions from Reuters, the Henley spokesman said the filing was as of December 31, 1986, but that the company still holds the shares. "It's an investment and we're very happy with it. Beyond that, I have no comment," the spokesman said.  
COMBUSTION <CSP> COMPLETES ACCURAY <ACRA> BUY. Combustion Engineering Inc said it has completed the previously-announced acquisition of AccuRay Corp in a merger trasaction that closed Friday at 45 dlrs per share.  
OPPENHEIMER HAS SIX PCT OF CYCLOPS <CYL>. Oppenheimer, the brokerage and investment subsidiary of Oppenheimer Group Inc, told the Securities and Exchange Commission it has acquired 243,400 shares of Cyclops Corp, or 6.0 pct of the total outstanding. Oppenheimer said it bought the stake in connection with risk arbitrage and other investment activities in the ordinary course of its business. It said it has no plans to seek control of the company. As of Friday, <Dixons Group PLC> had acquired 2,455,000 Cyclops shares, giving it 83 pct of the total.  
ALLEGHENY INTERNATIONAL <AG> SELLS WILKINSON. Allegheny International Inc said it sold its Wilkinson Sword Consumer Group to the <Swedish Match Co> of Stockholm for for 230 mln dlrs. After settlement of intercompany transactions between the Wilkinson Sword groups and Allegheny, the net payment by Swedish Match will amount to about 160 mln dlrs. The Wilkinson Sword Group was transferred to the Swedish Match Co today except for companies in certain countries where approval from government authorities is required, the company said. Allegheny said it acquired a 44 pct interest in Wilkinson, then known as Wilkinson Match Ltd, in 1978, and the remaining share in 1980. This divestiture is part of Allegheny's overall restructuring program and strategy to concentrate primarily on its North American consumer products business, the company said.  
C.O.M.B. <CMCO> SELLS THREE RETAIL STORES. C.O.M.B. Co said it sold three of its retail stores in Omaha to Bob Cummins Enterprises Inc, a retail closeout merchandiser. It said the sale is consistent with its previously announced Retail Division restructuring plans.  
HERITAGE COMMUNICATIONS <HCI> IN SPECIAL MEETING. Heritage Communications Inc said it expects to hold a special shareholder meeting in May to consider its proposed acquisition by an investor group including members of senior management and Tele-communications Inc <TELE>. The company said it is seeking to obtain all regulatory approvals needed to complete the transaction before or shortly after the special meeting.  Heritage said it has filed preliminary proxy materials with the Securities and Exchange Commission and has applied for a change of control of its broadcast licenses with the Federal Communications Commission. Heritage it and Tele-Communications made required Hart-Scott-Rodino filings with the Federal Trade Commission and Justice Department on March 11 and 12, respectively.  
LOUISIANA PACIFIC <LPX> TO BUY WALLBOARD PLANT. Louisiana Pacific Corp said it reached a non-binding agreement in principle to buy a gypsum wallboard plant in Seattle from Norwest Gypsum. Purchase price and other details of the agreement were not disclosed.  
NOBEL'S BOFORS TO SELL ITS SINGAPORE HOLDING. Nobel Industries Sweden SA <NOBL.ST> said its arms subsidiary, <AB Bofors>, plans to sell its 40 pct stake in <Allied Ordnance Co of Singapore Ltd> because of its part in weapons exports which contravene Swedish law. "The events we have uncovered are unacceptable and highly regrettable incidents in our company's history," Nobel chairman Lars-Erik Thunholm told a news conference. Nobel managing director Anders Carlberg said an internal inquiry has revealed an extensive network of international arms smuggling.  
KAUFMAN, BOARD <KB> UNITS CUT QUAKER <KSF> STAKE. Kaufman and Board Inc and its insurance subsidiaries said they lowered their stake in Quaker State Oil Refining Corp to 1,795,908 shares, or 6.9 pct of the total outstanding, from 2,120,908 shares, or 8.1 pct. In a filing with the Securities and Exchange Commission, the Kaufman and Board group, which includes Sun Life Group, said it sold 325,000 Quaker State common shares between Feb 27 and March 23 at prices ranging from 28.00 to 31.00 dlrs each.  
BUSINESSMAN HAS 5.7 PCT OF ARDEN GROUP <ARDNA>. Saul Brandman, a California business executive, told the Securities and Exchange Commission he has acquired 118,714 shares of Arden Group Inc, or 5.7 pct of the total outstanding common stock. Brandman, chairman of Domino of California Inc, a Los Angeles garment maker, said he bought the stake for 3.1 mln dlrs for investment purposes. He said he may buy more Arden Group shares, or he may sell some or all of his current stake. He also said he has no plans to seek control of the company.  
ORANGE <OJAY> IN DEFINITIVE PACT TO SELL UNITS. Orange Julius International Inc said it entered into a definitive agreement to sell Orange Julius of America and Orange Julius Canada Limited to H.C. Holdings Inc, owned by Branford Castle Inc, a merchant banker, members of its management and certain of its shareholders. Orange said the purchase price will consist of 19 mln dlrs in cash and 10 pct redeemable preferred, 10 pct of HC's common equity, and the right for it to prospectively receive 20 pct of certain royalties under a proposed licensing program. It said HC also agreed to lend up to 600,000 dlrs to it in advance of closing and it had already received 300,000 dlrs. Orange Julius announced the proposed sale of the units when a letter of intent was signed February 17. The company said it is reviewing other offers to buy the units and if it decides to accept another offer it will pay HC an agreed upon amount and reimburse HC for its expenses.  
INVESTOR HAS 8.0 PCT OF ALLEGHENY INT'L <AG>. A group of firms and funds controlled by New York investor Mario Gabelli said it has acquired the equivalent of 882,507 shares of Allegheny International, or 8.0 pct of the total outstanding. In a filing with the Securities and Exchange Commission, the Gabelli group said it bought the stake as part of its business and not in an effort to seek control of the company. It said it may by more shares or sell some or all of its current stake. The stake includes 782,000 common shares and cumulative convertible preferred stock which could be converted into 100,507 common shares.  
<CLAYTON AND DUBILIER INC> SELLS BURPEE. Privately-held Clayton and Dubilier Inc said it has sold W. Atlee Burpee Co to a new company formed by Wicks Capital Corp, Bankers Trust New York Corp <BT> aND Burpee management for undisclosed terms. The garden supply company was acquired from ITT Corp <ITT> in December along with O.M. Scott and Sons Co.  
INVESTOR GROUP HAS CIRCLE EXPRESS <CEXX> STAKE. An investor group controlled by New York Investor David Rocker told the Securities and Exchange Commission it has acquired 291,400 shares of Circle Express Inc, or 6.1 pct of the total outstanding common stock. The group, Rocker Partners Ltd and Compass Investments Ltd, said it bought the stake for investment purposes and not as part of an effort to seek control of the company.  
<VISTA MANAGEMENT INC> TO MAKE ACQUISITION. Vista Management Inc said it has agreed to acquire General Energy Development Inc for over 2,200,000 dlrs in cash, with financing to come from mortgage loans on the National Auto Service Centers General Energy operates.  
GOLDEN POULTRY <CHIK> TO MAKE ACQUISITION. golden Poultry Co Inc said it has signed a letter of intent to purchase privately-held food distributor Don Lowe Foods Inc of Pompano Beach, Fla., for undisclosed terms, subject to approval by both boards. It said Tampa operations of Lowe are not involved in the sale.  
WILLCOX AND GIBBS <WG> TO MAKE ACQUISITION. Willcox and Gibbs Inc said it has agreed to acquire Atlantia electric parts distributor B and W Electric Supply Co for an undisclosed amount of cash. B and W had sales of about eight mln dlrs in its most recent year. Willcox said it plans further expansion in the Atlanta area.  
HUGHES SUPPLY <HUG> TO MAKE ACQUISITION. Hughes Supply Inc said it has signed a letter of intent to acquire most of the assets of Tri State Supply Inc, a wholesale distributor of electrinical fixtures and supplies with sales for the year ending tomorrow of about 13 mln dlrs. Terms were not disclosed. It said clopsing is expected around April 30, subject to approval by Tri State's board and shareholders.  
OHIO MATTRESS <OMT> IN ACQUISITION, SETTLEMENT. Ohio Mattress Co said itr has executed a definitive agreement to acquire Sealy Mattress Co of Michigan Inc, the Detroit licensee of Ohio Mattress's 82 pct owned Sealy Inc subsidiary in a transaction that also involves a settlement between Sealy and Michigan Sealy. The company said on completion of the acquisition, the Sealy stock owned by Michigan Sealy will be redeemed, raising Ohio Mattress' interest in Sealy to 93 pct.  Michigan Sealy has been in litigation against Sealy, alleging violations of antitrust laws, and Sealy was recently found liable for 45 mln dlrs in damages to Michigan Sealy. Under the acquisition agreement, the company said Sealy will enter into a cash settlement of its litigation with Michigan Sealy. The company said shareholders of Michigan Sealy will receive a total of 48.6 mln dlrs, subject to adjustment, from the acquisition and the settlement, both of which are subject to regulatory approvals. Michigan Sealy had sales of about 12.5 mln dlrs in 1986.  
YORK INTERNATIONAL <YRK> TO MAKE ACQUISITIONS. York International Corp said it has agreed to acquire Frick Co and Frigid Coil/Frick Inc for undisclosed terms. The company said Frick makes refrigeration equipment and compressors and Frigid Coil also makes refrigeration equipment. Together the two had revenues of about 50 mln dlrs in 1986. The company said it hopes to complete the acquisition in May, subject to its review of Frick and Frigid and regulatory approvals.  
NUCLEAR SUPPORT <NSSI> TO BUY ITT <ITT> HENZE. Nuclear Support Services Inc said it agreed in principle to buy the business and assets of ITT Henze Service from ITT Corp for an undisclosed amount. Henze, which is engaged in performing nuclear plant repair work, had revenues of 12.7 mln dlrs for the year ended December 31, 1986. For 1986, Nuclear Support, a supplier of support personnel and services to the nuclear power industry, had net income of 2.4 mln dlrs on sales of 30.6 mln dlrs.  
COLONIAL BANCGROUP <CLBGA> BUYS FARMERS. Colonial BancGroup said it acquired Farmers and Merchants Bank, a Baldwin County bank with assets of 103 mln dlrs, through an exchange of stock valued at about 12 mln dlrs. Colonial said it also signed letters of intent to acquire First Federal Bank in Opelika, Athens-Limestone Bank in Athens, Jackson County Bank in Scottsboro and Commercial National Bank in Demopolis, with aggregate assets totaling 130 mln dlrs.  
ROCHESTER TELEPHONE <RTC> COMPLETES ACQUISITION. Rochester Telephone Corp said it completed its acquisition of the Enterprise Telephone Co, based in New Holland, Pa., in exchange for stock valued at 26.3 mln dlrs. Enterprises serves about 16,000 access lines in Lancaster County. Enterprise becomes the third operating telephone subsidiary of Rochester Telephone in Pennsylvania and its sixth largest overall, the company said.  
HOME SHOPPING <HSN> TO PURCHASE TV STATION. Home Shopping NEtwork Inc said its Silver King Broadcasting Co INc unit entered a definitive contract to buy the broadcasting assets of TV station KWVT, Channel 22 in the Portland/Salem, Ore. area for undisclosed terms. Additionally, the company said KWVT, which serves 785,000 homes, began broadcasting Home Shopping Network full time this morning under an affiliation agreement. Home Shopping also said it entered a definitive contract to buy TV Station KPST, Channel 66 in San Francisco and KLTJ, Channel 49 in Dallas.  
BASS GROUP SAYS IT HAS HAD TALKS ON SEEKING CONTROL OF TAFT BROADCASTING.  BASS GROUP SAYS IT HAS HAD TALKS ON SEEKING CONTROL OF TAFT BROADCASTING  
BASS GROUP SAYS IT HAS HAD TALKS ON TAFT <TFB>. A group led by members of the wealthy Bass family of Fort Worth, Texas, which holds a 24.9 pct stake in Taft Broadcasting Co, said it has had talks about taking part in a move to take control of the company. In a filing with the Securities and Exchange Commission, the group said it has had discussions with other Taft stockholders and some company managers and directors "concerning participation in a group to acquire control" of the company. The Bass group, which did not identify any of the other people with whom it said it has had talks, said it plans to continue evaluating Taft and "will be involved in further discussions relating to the future control and direction" of the company. The group, which holds 2,291,210 Taft common shares, said its members may buy more shares of Taft common stock, or may decide to sell some or all of its stake. On Friday Taft said it would negotiate with a group led by its vice chairman, Dudley Taft, and a Rhode Island investment firm, which had offered 150 dlrs a share for the company. The Dudley Taft group, Theta Corp, which also includes Narragansett Capital Corp, a Providence, R.I., investment firm, is seeking to take the company private in a leveraged buyout valued at 1.38 billion dlrs. Besides the Bass group, another major Taft shareholder, Cincinnati, Ohio, financier Carl Lindner, has also said he has had talks about increasing his stake in the company, taking part in a takeover effort, or launching one himself. Lindner controls 1,489,298 shares of Taft common stock, or 16.2 pct of the total.  
SANTA FE <SFX> AWARE OF HENLEY <HENG> STAKE. Santa Fe Southern Pacific Corp said it has discussed with Henley Group that company's almost five pct stake and was told the holdings are for investment purposes. "We have confirmed with the Henley Group that they own approximately 7.9 mln shares of Santa Fe Southern Pacific common stock. They have informed me that they like our company and purchased the stock last year for investment purposes," Santa Fe chairman John Schmidt said in a statement. Henley late Friday filed a 10-K report with the Securities and Exchange Commission concerning the Santa Fe stake. Earlier Santa Fe's stock was up 4-7/8 to 41 before slipping to be up 1-7/8 at 38.  
AMOSKEAG <AMKG> TAKEOVER BLOCKED BY COURT. Amoskeag Bank Shares Inc said the New Hampshire Supreme Court overturned its proposed acquisition of Portsmouth Savings Bank in a three-two vote. The acquisition had been opposed by some depositors, who filed an action to block the takeover. "We will respond to this news as soon as we have had an opportunity to analyze the decision, and any and all options available to us," chairman William Bushnell said in a statement.  
BALL <BLL> ENDS TALKS WITH MONSANTO <MTC>. Ball Corp said it was unable to complete negotiations to acquire the plastic container business of Monsanto Co. It said the two companies had entered into exclusive negotiations last October. Neither company provided details on why the talks were terminated.  
REEF ENERGY <RFEN> ENTERS PIPELINE AGREEMENT. Reef Energy Corp said its board entered into agreements with Penteco Corp, a private Tulsa-based company, to buy a 12-pct interest in the general partnership of Penteco East Central Pipeline and a 10-pct interest in Lincoln Gas and Marketing Corp. Penteco East is a gas gathering and transmission system in southern Kansas and northern Oklahoma. It said Penteco in turn has purchased one mln shares of Reef common and taken options for the purchase of another two mln shares over the next 36 months.  
VANDERBILT <VAGO> TO RAISE COMMON, MERGE. Vanderbilt Gold Corp said shareholders at a special meeting approved its reincorporation in Delaware, an increase in authorized common to 25 mln shares from 12 mln shares, and a non-qualified stock option plan. It also said shareholders approved the merger of Morning Star Mine interests held by six corporations in exchange for issuing 2,098,602 shares of its common. It said the acquisition brings its ownership in Morning to over 94 pct and it intends to acquire the remaining interests before mid year. It said its plans call for 1987 production of 30,000 ounces of gold with product costs per ounce at about 200 dlrs.  
BILZERIAN TELLS SEC HE UPS PAY 'N PAK STAKE TO 9.9 PCT.  BILZERIAN TELLS SEC HE UPS PAY 'N PAK STAKE TO 9.9 PCT  
BASS GROUP EMERGES AS POSSIBLE TAFT<TFB> BIDDERS. The Bass Group, once thought by analysts to be eager to sell its holdings in Taft Broadcasting Co, emerged as another potential bidder for the Ohio broadcasting company. The Bass Group, which holds 24.9 pct of Taft, said it had talked with other taft stockholders and some company managers and directors "concerning participation in a group to acquire control" of the company. The Bass group said it had talks with other Taft stockholders and members of Taft management about participating in a group to acquire control. The group, which is led by the wealthy bass brothers of Fort Worth, Texas, did not identify any of the other people with whom it had talks. Taft said Friday it would negotiate with its vice Chairman Dudley Taft on his group's 150 dlr per share or 1.38 billion dlr offer for the company. At the time, the company said it authorized its adviser, Goldman, Sachs and Co, to explore other takeover proposals and to supply financial data to other interested bidders. "If indeed, the reason Dudley Taft is no longer president is because the bass group tossed him out, I couldn't see them backing him on any deal," said one analyst, who asked not to be identified. "I think they wanted a way out. Now, this sounds like they're going to join the group and buy themselves out," said Edward Atorino, media analyst with Smith Barney, Harris Upham and Co. Analysts have speculated that Carl Lindner may be interested in acquiring the company. they speculated he may be one of the shareholders in talks with the bass group. Lindner, chairman of American Financial Corp, holds 16.2 pct of Taft. He was not immediately available for comment. Analysts have said they are baffled by the strength of Taft's stock price compared to what they see as breakup values for the company. Several analysts had estimated a break up value of less than 150. One analyst said he believes it has a breakup value of 160 to 165 dlrs per share. Taft stock closed at 156-1/2, up 1-3/4. "They (investors) are saying here's another one - another family dispute," said Dennis McAlpine of Oppenheimer.  
BILZERIAN UPS PAY 'N PAK <PNP> STAKE TO 9.9 PCT. Investor Paul Bilzerian, who has said he may seek control of Pay 'n Pak Stores Inc, said he raised his stake in the company to one mln shares, or 9.9 pct of the total, from 721,900 shares, or 7.2 pct. In a filing with the Securities and Exchange Commission, Bilzerian and Bicoastal Financial Corp, a Tampa, Fla., investment firm he controls, said they bought 278,000 shares of Pay 'n Pak common stock on March 26 and 27 at prices ranging from 13.29 to 17.04 dlrs a share. Bilzerian last week said he was considering raising his stake in the company, seeking a board seat or control.  
SERVICE RESOURCES <SRC> UNIT SETS PURCHASE. Service Resources Corp's Chas. P. Young Co subsidiary said it agreed to acquire Atwell Fleming Printing Ltd, a Canadian financial printer, for about 3.2 mln dlrs. Young said the acquisition, which is expected to close in April, is subject to due dilligence review.  
GENOVA <GNVA> TO MERGE INTO GENOVA PRODUCTS. Genova Inc said its shareholders approved a merger into <Genova Products Inc>, which will be consumated within a few days. Under the agreement, Genova said each of its shareholders will receive 5.375 dlrs per share in cash.  
SERVICE RESOURCES <SRC> UNIT IN ACQUISITION. Chas. P. Young Co, a subsidiary of Service Resources Corp, said it signed a definitive agreement to acquire Atwell Fleming Printing Ltd, of Canada, for about 3.2 mln dlrs. The transaction is expected to close in April. ON February 23, Chas. P. Young said it had aquired 19.05 pct of the shares of Sorg INc <SRG> to facilitate a newgotiated business combination.  
DIXONS GROUP, AUDIO/VIDEO <AVA> END LITIGATION. Dixons Group PLC said that pursuant to an agreement with Audio/Video Affiliates Inc, part of an investor group that made a rival bid for Cyclops Corp <CYL>, all litigation between them has been dismissed. As part of the agreement, Dixons said Cyacq Corp, the Audio/Video investor group that includes Citicorp Capital Investors Ltd, agreed to "promptly" terminate its existing tender offer for all outstanding Cyclops common at 92.50 dlrs per share. Dixons said it agreed to pay an additional 4.75 dlrs per share, or 95 dlrs per share, to each shareholder whose shares were purchased under its offer for Cyclops at 90.25 dlrs per share. On Friday, Dixons announced that it had increased its holdings in Cyclops Corp to about 83 pct of the currently outstanding shares and that it intended to increase to 95 dlrs from 90.25 dlrs the amount per share paid in the merger of a Dixons subsidiary with Cyclops.  
U.S. DOT APPROVES AMERICAN <AMR>-ACI <ACF> PACT. The U.S. Department of Transportation (DOT) said it gave final clearance to the proposed 225 mln dlr acquisition of AirCal Inc by American Airlines Inc. "The acquisition is not likely to substantially lessen competition or to be inconsistent with the public interest," the DOT said in a statement. AirCal is a unit of ACI Holdings Inc while American is a unit of AMR Corp. The DOT had given tentative approval to the merger plan Feb. 20. American is the third largest U.S. airline in terms of revenue passenger miles while AirCal--a relatively small carrier that primarily serves West Coast cities--is the nation's 17th largest passenger carrier. Their merger would not alter American's third-place ranking, according to data compiled by Aviation Daily, a leading industry trade magazine. The combination would incrase American's share of the U.S. market to 15.4 pct from its current 14.7 pct, the DOT said. The DOT said the merger was unlikely to substantially reduce competition on the four routes on which both carriers provide either nonstop or single-plane service. At 13 of the 14 terminals served by both carriers, the DOT said it found no evidence that other carriers could not increase or begin service that competed with a merged American-AirCal. Concerning the 14th, "While entry may not be possible at the Orange County Airport in the near future, DOT found that the service provided at other airports in the Los Angeles area, especially at the Los Angeles International Airport, will provide effective competition for Orange County travelers in long-haul markets," the DOT said. The merger would give American control of 37 pct of the authorized takeoff and landing slots at the Orange County terminal, where environmental concerns and a small terminal building limit future opportunities for expansion. The DOT said the Air Line Pilots Association filed comments opposing the merger but "raised no new facts or arguments." Under the merger terms, announced Nov. 17, American will pay 15 dlrs a share for the outstanding stock of ACI Holdings.  
NEOAX <NOAX> BUYS REXNORD <REX> UNIT. Neoax Inc said it bought Rexnord Inc's Fairfield Manufacturing Co for 70.5 mln dlrs cash. The unit makes custom gears for industrial use and had sales of 84 mln dlrs in its Oct. 31, 1986 fiscal year.  
INFINITY <INFTA> TO PURCHASE AM/FM STATION. Infinity Broadcasting Corp said it entered an agreement to acquire radio stations KVIL AM/FM from Sconninx Broadcasting Co for 82 mln dlrs. Upon completion of the transaction, Infinity will own nine FM and four AM stations in 10 major markets. The transaction is subject to FCC approval.  
AMFAC <AMA> TO SELL STORE. Amfac Inc said it entered an agreement to sell the last remaining store of its original Liberty House of California operation to H and S - San Mateo Inc. Terms were not disclosed.  
HARPER INTERNATIONAL <HNT> IN ACQUISITION. Harper International Inc said it intends to buy the major asset, patents and trade name of Demarkus Corp, a designer and installer of process gas systems for the soft drink and brewing industries. The purchase price is about 125,000 dlrs. Demarkus' sales were 470,000 dlrs in 1986.  
OLSON INDUSTRIES <OLSN> TO SELL EGG OPERATIONS. Olson Industries Inc said it signed a letter of intent to sell substantially all of its remaining egg operations to Sunny Fresh Foods inc. Olson said it expects to receive about nine mln dlrs from a combination of a sale of tangible assets to Sunny Fresh and realization of intangible and other assets by Olson. The transaction is expected to result in a charge for discontinued operations of about two mln dlrs but is also expected to generate substantial cash flow to pay off egg-related indebtedness of about 7.5 mln dlrs and to further improve working capital.  
GENCORP REJECTS UNSOLICITED TAKEOVER BID FROM AFG INDUSTRIES/WAGNER AND BROWN.  GENCORP REJECTS UNSOLICITED TAKEOVER BID FROM AFG INDUSTRIES/WAGNER AND BROWN  
GROUP SELLS STAKE IN COMDATA NETWORK <CDN>. A group of investment firms which had once sought control of Comdata Network Inc, told the Securities and Exchange Commission it sold its remaining 1,113,500-share, or 5.9 pct, stake in the company. The group, which had owned as much as 9.5 pct of the total, said it sold the stake on March 27 at 15-3/4 dlrs a share. Last week it sold 455,000 Comdata shares. Group members are CNI Partners, an investment partnership, Mason Best Co, a Texas investment partnership, and Houston Imperial Corp, a real estate development firm.  
GENCORP <GY> REJECTS UNSOLICITED TAKEOVER BID. Gencorp Inc said its board urged shareholders to reject the hostile unsolicited 100 dlr a share tender offer made March 18 by General Acquisition Inc, an affiliate of Wagner and Brown and AFG Industries INc. Gencorp also said it is developing a financially superior alternative that would enable shareholders to benefit from the full value of the company. In a letter to shareholders, Chairman A. William Reynolds said the offer is a "highly conditional, contingently financed bust-up offer" that seeks to deny shareholders the true value of their investment in Gencorp. Reynolds said the board reached its decision to reject the offer after careful study with legal and financial advisers. He said the board has authorized management to explore alternatives aimed at providing shareholders with a "financially superior" alternative to the general acquisition offer. A Gencorp spokesman, in response to questions, would not comment on market speculation that the company's management may develop a leveraged buyout offer of its own. He would also not comment on when a better alternative might be developed. Gencorp's stock has traded well above the 100 dlr offer price since the tender was made. Today, Gencorp closed at 114-1/4, up 1-5/8. Reynolds said in the letter that for the last few years, Gencorp management has taken action to enhance shareholder value, and the stock price and earnings have improved since he joined the company. Gencorp said the partnership's offer is a "bargain price" acquisition that was "using financing from a syndicate of banks that does not yet exist and a bridge loan from Shearson Lehman brothers that shearson is not obligated to provide." Reynolds also said the offer would result in a radical alteration and selloff of Gencorp's assets, including Aerojet General to refinance General Acquisition's borrowings with the profits going to Wagner and Brown and AFG instead of shareholders. The letter also said the General Acquisition offer "jeopardizes the security and interests" of its shareholders, employees, customers, suppliers and the communities throughout the country where the company's facilities are located.  
PARTNERS CALL GENCORP<GY> RESPONSE UNPRODUCTIVE. General Acquisition Co said it was disappointed by Gencorp's response to its tender offer and questioned how the company might give better value to shareholders. Gencorp earlier urged shareholders to reject a 100 dlr per share tender offer from the partnership, which includes Wagner and Brown and AFG Industries Inc. The company said it was studying financially superior alternatives. The partnership called the response inflammatory and unproductive, particularly since it had attempted to discuss the offer with Gencorp. The partnership said Gencorp failed to say how it would provide a "superior value yet they continue their attempt to prevent a satisfactory offer by failing to redeem their poison pill." Poison pills are shareholder rights plan that make takeovers more expensive. Gencorp said in its statement earlier that the date its rights will trade separately from the common stock was extended to April six from April three. It said the extension was subject to further extensions by the board and is conditioned on no person aquiring beneficial ownership of 20 pct or more of Gencorp prior to April six. General Acquisition said it is confident its offer can be completed in a timely manner using its financial arrangements. The partnership in its statement again urged management to work with it to facilitate a transaction.  
CSR SELLING DELHI TO EXXON UNIT, DROPS DELHI FLOAT. CSR Ltd <CSRA.S> and Exxon Corp <XON> unit <Esso Exploration and Production Australia Inc> said CSR has agreed to sell its <Delhi Australia Fund> (DAF) to Esso for 985 mln Australian dlrs. The sale is effective from tomorrow, they said in a joint statement. The previously announced float of part of its Delhi interest will not now proceed, CSR said in the statement. Delhi Australia Fund owns <Delhi Petroleum Pty Ltd>, which holds an average of 25 pct in the Santos Ltd <STOS.S>-led Cooper and Eromanga Basin gas and liquids projects. In addition to the purchase price, CSR will share equally in any returns due to increases in crude oil and condensate prices over certain levels for liquids produced from Delhi's interests in the next two years, the statement said. "The Esso proposal to purchase all the Delhi interest will be more beneficial to our shareholders than proceeding with the float," CSR chief executive Bryan Kelman said in the statement. Kelman said the sale of Delhi would enable CSR to focus efforts on expanding business areas such as sugar and building materials in which CSR has had long and successful management experience and strong market leadership. With the sale, CSR will be able to expand those businesses more aggressively and earlier, he said. As reported separately, soon after announcing the Delhi sale CSR launched a takeover bid for the 68.26 pct of <Pioneer Sugar Mills Ltd> that it does not already hold, valuing its entire issued capital at 219.6 mln dlrs. After Bass Strait, the onshore Cooper and Eromanga Basin is Australia's largest oil and gas producing area with current gross oil production of 45,000 barrels per day (BDP), gas liquids output of 30,000 BPD and gas sales of 480 mln cubic feet a day, the CSR-Esso statement said. The purchase gives Esso, a 50/50 partner with The Broken Hill Pty Co Ltd <BRKN.S> in the Bass Strait, its first onshore production in Australia, they said. Esso's chairman Stuart McGill said he hoped Esso can assist in maintaining the high rate of oil and gas discoveries in the Cooper-Eromanga area. "These discoveries will help Australia's self-sufficiency in oil reserves thereby offsetting in part the decline in Bass Strait production now under way," McGill said. In a separately released letter to CSR shareholders, Kelman said CSR was within days of completing plans for the float of CSR Petroleum when it received an offer from Esso. He said CSR is convinced the sale was the correct decision in view of the risks associated with the oil business. The price-sharing arrangement provides for CSR to share equally with Esso in higher returns if oil prices average more than 20 U.S. Dlrs a barrel in the next two years, he said. Kelman said a revaluation of CSR's investment in Delhi to net realisable value as of today, CSR's annual balance-date, will result in an extraordinary loss of 97 mln dlrs. However, revaluations and profits on sales of other assets will significantly reduce this loss, he said. He also said that CSR is sufficiently encouraged by future prospects and the opportunity to reposition the group in core businesses to foreshadow an increase in final dividend payable in July to 10 cents from nine to make an annual 19 cents against 18 in 1985/86.  
SHANDWICK BUYS LOS ANGELES PR COMPANY. Public Relations consultancy <Shandwick Plc> said it had agreed to buy the Los Angeles-based <Rogers and Cowan Inc> which specialises in the entertainment industry. A total of 2.25 mln dlrs is payable on completion, 1.5 mln will be injected into the business through an interest free loan and the expenses of the acquisition amount to 660,000 stg. Shandwick said it would raise 5.1 mln stg through the placing of 1.16 mln shares to finance the deal, with the balance of 2.04 mln stg used to strengthen the balance sheet and in anticipation of future performance-related payments. In the year to end-September Rogers' operating income was more than 10 mln dlrs. After the acquisition Shandwick's U.S. Operating income will be comparable to that it earns in the U.K. Rogers' estimated that pretax profit in the year to end-1987 would exceed 900,000 dlrs. An extraordinary loss of 504,000 dlrs in 1986 resulted from the write off of assets. Net tangible assets at end-September were 363,000 dlrs. Shandwick shares were unchanged at 460p.  
LONDON INT'L SELLING HOT WATER BOTTLE UNIT. London International Group Plc <LONL.L> said it had agreed to sell its <Haffenden Moulding Co Ltd> unit to <Melton Medes Ltd> for 2.1 mln stg. Haffenden is a moulder of hot water bottles and also produces a variety of rubber and plastic mouldings. The book value of its assets is 4.4 mln stg. LIG said the disposal was part of its strategy of concentrating on its core activities. LIG shares were one penny firmer at 277p.  
CABLE SHARES FIRM ON JAPAN SPECULATION. Shares in Cable and Wireless Plc <CAWL.L> firmed in morning trading on market speculation that its participation in a joint telecommunications venture in Japan would not be curtailed, dealers said. The company's shares were quoted at 372p at 0915 GMT compared with 364p last night. The dealers said the speculation appeared to originate in Japan. Cable has said it is resisting attempts by the Federation of Economic Organisations to merge two Japan-based telecommunications firms, a move which would have cut Cable's stake from 20 pct in one to three pct in the merged unit. However, the dealers were uncertain exactly how the dispute over the shareholdings had been resolved. British prime minister MargaretThatcher said in parliament last week that she regarded Cable and Wireless's participation in the Japanese venture as a test case of how open the Japanese telecommunications market really was. A spokesman for Cable said he was unaware if the speculation had any foundation. Cable itself had issued no statement today on the issue.  
ADSTEAM TO ACQUIRE 49 PCT OF U.K. PROPERTY COMPANY. The Adelaide Steamship Co Ltd <ADSA.S> (Adsteam) said it will subscribe to 30 mln shares in listed British property developer, <Markheath Securities Plc>, at 60p each, subject to shareholder approval. The subscription, expected to take place in May, will give Adsteam 49 pct of Markheath, Adsteam said in a statement. Adsteam's managing director John Spalvins will become chairman of Markheath and two other Adsteam nominees will join its board. "We hope that in time Markheath will become a significant property and industrial company in the same style as Adsteam," Spalvins said in the statement.  
CSR SELLING DELHI TO EXXON UNIT, DROPS DELHI FLOAT. CSR Ltd <CSRA.S> and Exxon Corp <XON> unit <Esso Exploration and Production Australia Inc> said CSR has agreed to sell its <Delhi Australia Fund> (DAF) to Esso for 985 mln Australian dlrs. The sale is effective from tomorrow, they said in a joint statement. The previously announced float of part of its Delhi interest will not now proceed, CSR said in the statement. Delhi Australia Fund owns <Delhi Petroleum Pty Ltd>, which holds an average of 25 pct in the Santos Ltd <STOS.S>-led Cooper and Eromanga Basin gas and liquids projects. In addition to the purchase price, CSR will share equally in any returns due to increases in crude oil and condensate prices over certain levels for liquids produced from Delhi's interests in the next two years, the statement said. "The Esso proposal to purchase all the Delhi interest will be more beneficial to our shareholders than proceeding with the float," CSR chief executive Bryan Kelman said in the statement. Kelman said the sale of Delhi would enable CSR to focus efforts on expanding business areas such as sugar and building materials in which CSR has had long and successful management experience and strong market leadership. With the sale, CSR will be able to expand those businesses more aggressively and earlier, he said. As reported separately, soon after announcing the Delhi sale CSR launched a takeover bid for the 68.26 pct of <Pioneer Sugar Mills Ltd> that it does not already hold, valuing its entire issued capital at 219.6 mln dlrs.  
CSR BIDS 2.20 DLRS A SHARE FOR PIONEER SUGAR MILLS. CSR Ltd <CSRA.S> said it will offer 2.20 dlrs cash each for the shares it does not already hold in <Pioneer Sugar Mills Ltd>. CSR already holds 31.74 pct of Pioneer's 99.80 mln issued shares, it said in a statement. The offer price values the entire Pioneer Sugar share capital at 219.6 mln dlrs and compares with today's closing market level of 1.85 dlrs a share. CSR said it will announce further details of the offer soon, including an alternative offer of CSR shares for Pioneer Sugar stock. It said the offer is generous since it will give Pioneer Sugar shareholders a price equivalent to 29 times Pioneer's net earnings last financial year and a premium of 22 pct over yesterday's market price which CSR said it believed already contained an element of takeover speculation. It also gives a premium of 91 pct over Pioneer's last reported net tangible assets per share, CSR said. CSR said the generous offer price reflects the cost savings which will flow from integrated management of CSR's and Pioneer's raw sugar mills and building materials businesses. These economies can only be achieved through CSR control and management of Pioneer Sugar, it added. The takeover announcement came soon after CSR's earlier reported statement that it will sell its <Delhi Petroleum Pty Ltd> unit to an Exxon Corp <XON> unit for 985 mln dlrs and not proceed with the previously announced float of part of Delhi.  
FLETCHER CHALLENGE DISAPPOINTED AT NZ FOREST MOVES. <Fletcher Challenge Ltd> (FCL) Managing Director Hugh Fletcher said he was disappointed that <Rada Corp Ltd> had decided to sell its shares in <N.Z. Forest Products Ltd> (NZFP) to Australia's <Amcor Ltd>. He said in a statement that FCL had made an offer for the 24 pct of NZFP held by Rada. He said the FCL offer was better than Amcor's because it would have been made to all NZFP shareholders, but he gave no further details. Amcor and NZFP said earlier today they were merging their pulp and paper interests in a joint partnership and were increasing their existing cross-shareholdings. The plan involves NZFP increasing its current holding in Amcor to about 20 pct from four pct. Amcor will acquire Rada's NZFP stake to add to its existing 11 pct and will seek statutory approval to increase its holding to 50 pct. Rada bought its stake for 505.5 mln dlrs from <Wattie Industries Ltd> last year, but it has not disclosed the price to be paid by Amcor. FCL originally launched a takeover bid for NZFP late last year with a scrip and/or cash offer at 3.90 dlrs a share, valuing the company at 1.3 billion dlrs. NZFP shares ended at 3.88 dlrs today.  
CHINA'S CITIC BUYS H.K. HOTEL FROM CHEUNG KONG. The Peking-owned China International Trust and Investment Corp (Citic) bought the unfinished City Garden Hotel in Hong Kong from a subsidiary of Cheung Kong (Holdings) Ltd <CKGH.HKG> for 235 mln H.K. Dlrs, Cheung Kong director Albert Chow said. Cheung Kong's subsidiary <International City Holdings Ltd> will complete work on the hotel by the end of 1988, when it will be handed over to Citic. The deal does not include the decoration or fitting out of the interior of the hotel. The 600-room hotel stands on a 26,700 sq ft site on the eastern side of Hong Kong island.  
FRENCH CGE UNIT TAKES 34 PCT STAKE IN ESCA CORP. State-owned <Cie Generale d'Electricite>'s electrical contracting unit <CGEE ALSTHOM> has taken a 34 stake in the U.S. Computer firm <ESCA Corp>, CGEE ALSTHOM chairman Philippe Boisseau told a press conference. According to an agreement in principle between the two companies CGEE ALSTHOM could take a majority stake in the future but no time-scale has been set, he added. ESCA, which had a turnover of 13.6 mln dlrs in 1986 and is expected to see this rise to 20 mln this year, is one of the leading U.S. Suppliers of electric despatching and telecontrol systems.  
PARTNERS CALL GENCORP <GY> RESPONSE UNPRODUCTIVE. General Acquisition Co said it was disappointed by Gencorp's response to its tender offer and asked how the company might give better value to shareholders. Gencorp had earlier urged shareholders to reject a 100 dlr per share tender offer from General Acquisition, an affiliate of Wagner and Brown and AFG Industries Inc, and said it was studying financially superior alternatives. The General Acquisition partnership called the response inflammatory and unproductive, particularly since it had tried to discuss the offer with Gencorp. The partnership said Gencorp failed to say how it would provide a "superior value yet they continue their attempt to prevent a satisfactory offer by failing to redeem their poison pill." Poison pills are shareholder rights plans that make takeovers more expensive. Gencorp said in its statement earlier that it planned to put off the date its rights will trade separately from the common stock to April 6 from April 3. It said the extension was subject to further extensions by the board and is conditional on no person acquiring beneficial ownership of 20 pct or more of Gencorp before April 6. General Acquisition said it is confident its offer can be completed in a timely manner using its financial arrangements. The partnership in its statement again urged Gencorp management to work with it to facilitate a transaction.  
SEDGWICK BUYS BSI INCORP. Sedgwick Group Plc <SDWK.L> said its wholly-owned Canadian subsidiary Sedgwick Tomenson Inc had acquired BSi Incorp for a maximum eight mln Canadian dlrs. The funds will be raised through the issue of up to 1.16 mln ordinary Sedgwick shares to the vendors of BSi by no later than 31 January 1991. Some 427,054 shares already have been issued. BSi is a privately-held Canadian company involved in actuarial, employee and executive benefits consulting and administration. Its 1986 pretax profits excluding extraordinary items totalled 1.14 mln Canadian dlrs.  
REXNORD <REX> SELLS UNIT TO NEOAX <NOAX>. Rexnord Inc, 96 pct owned by Banner Industries Inc <BNR> following a recent tender offer, said it has completed the sale of its Fairfield Manufacturing Co subsidiary to NEOAX Inc for 70.5 mln dlrs in cash. Rexnord said it still plans to sell its Process Machinery Division and Mathews Conveyor Co as part of its planned program to divest five businesses with 200 mln dlrs in assets. Bellofram Corp and Railway Maintenance Equipment Co have already been sold.  
HUDSON FOODS <HFI> TO MAKE ACQUISITION. Hudson Foods Inc said it has agreed in principle to acquire Thies Cos Inc, a poultry, beef and pork products provider to midwest supermarkets and food distributors with sales of about 69 mln dlrs for the year ended November One. The company said a definitive agreement is expected to be signed in April.  Terms were not disclosed.  
ALPHA INDUSTRIES <AHA> SELLS DIVISION. Alpha Industries Inc said it has sold its Microelectronics Division to Triax Corp for undisclosed terms, retroactive to February One. It said the division has yearly revenues of about 12 mln dlrs and makes RF microwave components for the defense electronics industry. Alpha said it plans to concentrate on the high frequency portion of the electromagnetic spectrum.  
INTERLINK SAYS NOT PLANNING BID FOR PUROLATOR. British package courier <Interlink Express Plc> does not plan to bid for the whole or part of Purolator Courier Corp <PCC.N>, a spokesman said. "There is no intention of making any sort of approach to Purolator," the spokesman told Reuters, adding, "it would be a case of David versus Goliath." Interlink shares started trading in the U.K. Unlisted Securities Market in October 1986. It posted pre-tax profits of 2.13 mln stg on turnover of 9.6 mln stg in the six months to December 31, 1986. Purolator last year topped turnover of 465 mln dollars, the spokesman said. between Purolator and Interlink in view of a takeover or participation. He categorically denied press reports suggesting Interlink was developing a buyout bid. The reports said the proposed bid would be a price above the 35 dlrs per share offered by <E.F. Hutton LBO Inc>. The Hutton offer expires tomorrow. The spokesman said Interlink was seeking to expand business, first in continental Europe and later in the U.S. But the company did not expect to gain foothold in the U.S. Market until 1989 at the earliest, he said.  
CABLE SAYS CONSORTIUM PROPOSALS NOT ACCEPTABLE. Cable and Wireless Plc <CAWL.L> said proposals to resolve a dispute over entry to Japan's telecommunications market were not acceptable. A company spokesman said the proposals appear to have been made in today's edition of the Japanese daily Asahi by Fumio Watanabe, head of a telecommunications committee with the Federation of Economic Organisations. However, the suggestion still recommended a merger between the two consortia tendering for contracts and would give Cable a five pct stake, more than the three pct originally proposed but less than the 20 pct it holds in its original venture, he said. The proposal would also offer a Cable nominee a seat on the board of the merged company. The spokesman said he believed Japan should accept applications from the two rivals for fair review. Earlier today Cable shares firmed on market speculation that the dispute -- which is being treated by Britain's government as a test case of how open the Japanese telecommunications market is -- was near settlement. Cable shares at 1350 GMT were quoted at 375p compared with a close last night at 364p.  
GAF CORP OFFERS 36 DLRS A SHARE CASH FOR BORG-WARNER.  GAF CORP OFFERS 36 DLRS A SHARE CASH FOR BORG-WARNER  
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT. <Gruppo Ferruzzi> is studying a project which could result in a public share offer of up to 49 pct of its French unit <European Sugar (France)> and could raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said. Gardini told Reuters the operation under consideration was aimed at "international markets" and that the figure of 400 mln dlrs given in some press reports "was probably about right." European Sugar, wholly-owned by Ferruzzi unit Eridania Zuccherifici Nazionali SpA <ERDI.M>, is expected to absorb the European corn wet milling business of CPC International Inc <CPC.N> which Ferruzzi recently agreed to buy. Ferruzzi announced last week it had agreed in principle to buy the CPC operation for 630 mln dlrs. A Ferruzzi spokesman later confirmed that the group was studying the transfer of the CPC business to European Sugar along with a possible share offering in the Paris unit, but gave no details. The flotation plan has been interpreted by financial analysts as a means of helping finance the acquisition of the CPC business. In London yesterday, chairman of Belgian starch producer <Amylum NV> Pierre Callebaut told Reuters that since Ferruzzi was "apparently still organising finance," his company might still succeed with its rival bid for the CPC business. Gardini, commenting on Callebaut's remarks, said the 630 mln dlrs agreed for the CPC acquisition would be paid "at the date foreseen in the preliminary contract." Gardini could not reveal the date in question nor give any indication of the likely timing of an offering of shares in European Sugar, but it was announced last week that Ferruzzi's purchase of the CPC business was expected to be completed by September 30. Callebaut said yesterday that Amylum was surprised and disappointed that its 675 mln dlr bid cash offer for CPC's European business was apparently rejected in favour of Ferruzzi's lower bid. Gardini, commenting on Callebaut's remarks, said "Amylum should know that one succeeds in a bid by making the right offer at the right moment - exactly as Ferruzzi did in the case of the acquisition of CPC's European business." Gardini said it was not Callebaut's business to concern himself with the European Sugar capital raising operation under study, he added. Asked about press reports that Ferruzzi might follow up the European Sugar flotation with the sale of 49 pct of the CPC business, Gardini said: "We do not exclude having minority partners in the CPC business." He declined to elaborate.  
CORRECTED - GAF CORP OFFERS 46 DLRS A SHARE CASH FOR BORG-WARNER (CORRECTING AMOUNT).  CORRECTED - GAF CORP OFFERS 46 DLRS A SHARE CASH FOR BORG-WARNER (CORRECTING AMOUNT)  
GAF <GAF> SEEKS ALL OF BORG-WARNER <BOR>. GAF Corp said it has made an all cash merger proposal to Borg-Warner Corp at 46 dlrs per share for all the company's common stock. Following a meeting yesterday with Borg-Warner officials and investment bankers, GAF said, it is today delivering a letter to the Borg-Warner board outling the terms of the proposal that would be made by tender offer, pursuant to a mutually acceptable merger agreement to be approved by the Borg-Warner board and conditioned on that board's recommendation of the tender offer and merger. GAF, in its letter, stated it intends to finance the proposed acquisition entirely with its own funds and bank borrowings under a syndicated bank loan from a group of banks led by Chase Manhattan Corp's <CMB> Chase Manhattan Bank. Last week, GAF increased its ownership of Borg-Warner shares to 19.9 pct of those outstanding Minstar Inc <MNST> sold its 12.4 pct holding. GAF emphasized "the amicable nature of the proposed transaction," which it characterized as a partnership. GAF said it wanted to discuss with the Borg-Warner board key roles for Borg-Warner's senior management in the new organization, board representation for Borg-Warner directors on a newly constituted board, and a company name change. GAF said it will be filing an amendment to its 13-D with the U.S. Securities and Exchange Commission. Borg-Warner has about 85.6 mln common shares outstanding. Minstar chairman Irwin L. Jacobs sold his stake after Borg-Warner after the company failed to respond to his mid-February offer for a negotiated agreement at a minimum price of 44 dlrs a share. In November, Jacobs had offered to enter into acquisition talks with Borg-Warner based on a price of between 43 and 48 dlrs a share.  
AKZO PLANNING US INVESTMENTS. Dutch chemicals group Akzo NV <AKZO.AS> said it hoped to consolidate its core activities this year by making small acquisitions in the US. Akzo chairman Aarnoud Loudon told a news conference on its 1986 report that the company wanted to achieve the same level of US investments it had before it divested its fibre firm American Enka in December 1985, when US investments represented 20 pct of Akzo's total capital. The US expansion plans were not an attempt to compensate for losses in guilder income through the lower dollar, Loudon said. He said a more important factor was the speed of growth in the US, adding "It's the largest industrial market in the world." But he said the company would also be looking at possible acquisitions in Europe. Despite its highly liquid cash flow, Akzo did not plan acquisitions on a scale that would negatively influence the company's debt/equity ratio, Loudon said. The chairman said in the past two years Akzo had spent 1.1 billion guilders on acquisitions, of which nearly two thirds were in the United States. REUTER...  
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT. Gruppo Ferruzzi is studying a project which could result in a public share offer of up to 49 pct of its French unit European Sugar (France) and could raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said. Gardini told Reuters the operation under consideration was aimed at "international markets" and that the figure of 400 mln dlrs given in some press reports "was probably about right." European Sugar, wholly-owned by Ferruzzi unit Eridania Zuccherifici Nazionali SpA, is expected to absorb the European corn wet milling business of CPC International Inc which Ferruzzi recently agreed to buy. Ferruzzi announced last week it had agreed in principle to buy the CPC operation for 630 mln dlrs. A Ferruzzi spokesman later confirmed that the group was studying the transfer of the CPC business to European Sugar along with a possible share offering in the Paris unit, but gave no details. The flotation plan has been interpreted by financial analysts as a means of helping finance the acquisition of the CPC business.  
GANDALF <GANDF> ACQUIRES STAKE IN DATA/VOICE. Gandalf Technologies Inc said it acquired a significant minority equity interest in privately held Data/Voice Solutions Corp, of Newport Beach, Calif., for undisclosed terms. Gandalf did not specify the size of the interest. Data/Voice is a three-year-old designer and manufacturer of a multiprocessor, multiuser MS-DOS computing system that Gandalf plans to integrate with its private automatic computer exchange information system, Gandalf said.  
KEYCORP <KEY> AGREES TO ACQUIRE UTAH BANK. Keycorp said it has signed a definitive agreement to acquire Commercial Security Bancorp <CSEC> by exchanging Keycorp common valued at 63 dlrs for each Commercial Securities share. Keycorp said this gives the transaction an indicated value of 102 mln dlrs. Keycorp said the amount of its stock to be exchanged will be based on the daily average closing price of the shares for an unspecified period prior to the closing of the acquisition. Based on a maximum of about 2.75 Keycorp shares and a minimum of about 1.8 Keycorp to be exchanged, the agreement provides that if the average price of Keycorp common is less than 21.50 dlrs a share during the pricing period, the agreement will terminate unless a new conversion ratio can be negotiated. Keycorp said the transaction is designed to be tax free to Commercial Security shareholders. The company said it will treat the merger as a pooling of interests. It said the proposal is subject to approval by Commercial Security shareholders and various regulators. Keycorp said the merger is expected to become effective as soon as possible after December 31, 1987, the date Utah's interstate banking law becomes operational. Keycorp said Richard K. Hemingway and certain members of the Hemingway family who own about 30 pct of Commercial Security's outstanding shares have agreed to vote in favor of the transaction and not dispose of their stock. Based in Salt Lake City, Commercial Security ended 1986 with assets of 830.3 mln dlrs, net loans of 496.6 mln dlrs and deposits of 707.9 mln dlrs. It had net income of 5.1 mln dlrs or 3.16 dlrs a share on 1.6 mln average shares outstanding last year.  
PEAT MARWICK, KMG MAIN HURDMAN TO COMPLETE MERGER. Peat Marwick and KMG Main Hurdman said their merger will be completed tomorrow. The new firm, to be known as KPMG Peat Marwick, will rank among the largest public account and consulting firms in the U.S. based on combined 1986 revenues of 1.35 billion dlrs, 1,825 partners and a total staff of 16,500 in 136 offices. KPMG was created as part of the merger announced last September of Peat Marwick International Klynveld Main Goerdeler to form Klynveld Peat Marwick Goerdeler.  
BORG-WARNER <BOR> EXAMINING GAF <GAF> PROPOSAL. Borg-Warner Corp in a statement said it has received GAF Corp's 46 dlrs a share acquisition proposal and will have no comment until its board of directors has had a chance to examine it thoroughly.  
AUDIO/VIDEO <AVA> TO GET EXPENSES FROM DIXONS. Audio/Video Affiliates Inc said it will receive an undisclosed amount from <Dixons Group PLC> in connection with the termination of Cyacq Corp's 92.50 dlr per share tender offer for Cyclops Corp <CYL>. The company said the amount from Dixons is in lieu of reimbursement expenses for the Cyacq tender.  Citicorp <CCI> was the other partner in Cyacq. The payment was in connection with Dixons' previously -announced agreement to increase its tender price for Cyclops to 95.00 dlrs per share, Cycacq's ending of its competing bid and the ending of litigation between the parties.  
REPUBLIC <RSLA> TO MERGE WITH PIONEER SAVINGS. Republic Savings and Loan Association and <Pioneer Savings> of Racine, Wis., said they have signed a definitive agreement to combine the two associations into a publicly held holding company to be called Republic Capital Group Inc. The associations said they would form the company by exchanging Republic's stock for shares in the holding company, which Pioneer savers could purchase when Pioneer converts from mutual to stock ownership. The associations added that they would remain independent, but wholly owned, units of the holding company. The associations said they would continue to do business using their present names and management. The combination of Republic's 459 mln dlrs in assets with Pioneer's 125 mln dlrs would make the new holding company the fifth largest savings and loan organization in Wisconsin, they said. The associations said the move is subject to approval by the Federal Home Loan Bank Board and the Wisconsin Commissioner of Savings and Loan, as well as Republic's shareholders and Pioneer's depositors.  
BROUGHER <BIGI> TO SELL 40 PCT OF SUBSIDIARY. Brougher Insurance Group Inc said it plans to sell 40 pct of the stock of its subsidiary, Intercontinental Corp, for one mln dlrs to three European insurance companies. The parent company said it signed a letter of intent to sell the stock to <WASA Europeiska Forsakrings AB> of Sweden, <Europeiske Reiseforsikring A/S> of Norway, and <Europeiska Rejseforsikrings A/S> of Denmark. Brougher said it expects to realize a net after-tax gain of approximately 330,000 dlrs, or 12 cts per share, from issuing stock of Intercontinental.  
ACTON <ATN> TO SELL UNIT FOR GAIN. Acton Corp said it has agreed to sell its five Michigan cable television systems to Wisconsin Cablevision Inc for about 9,500,000 dlrs, resulting in a gain of about six mln dlrs. The company said the sale is subject to review by local authorities.  The systems have about 7,500 subscribers. Acton said proceeds will be used to retire bank debt. The company said it has also entered into a 15.5 mln dlr bank credit agreement that will allow it to complete the prepayment of all its obligations to members of its present bank syndicate. The company said the new credit will also allow it to prepay some other debt and redeem its Class C Series Two preferred stock. It said the new facility has allowed it to take full advantage of an early payment discount of about 13 mln dlrs in principal and interest which was negotiated with its banking syndicate in connection with an April 1986 financial restructuring.  
USX <X>, CONSOLIDATED NATURAL <CNG> END TALKS. USX Corp's Texas Oil and Gas Corp subsidiary and Consolidated Natural Gas Co have mutually agreed not to pursue further their talks on Consolidated's possible purchase of Apollo Gas Co from Texas Oil. No details were given.  
CHUBB CORP <CB> COMPLETES ACQUISITION. The Chubb Corp said it completed the previously-announced merger of its subsidiary with and into Sovereign Corp <SOVR>, a life insurance holding company. Under the terms of the merger, Sovereign stockholders wil receive, in a tax free exchange, 0.1365 of a share of Chubb common stock for each share of Sovereign held, the company said. This equals 9.11 dlrs per share of Sovereign stock based on the closing price of Chubb common stock on March 30.  
LAROCHE DROPS CONDITION TO NECO <NPT> OFFER. Investor David F. Laroche said he has decided to drop the condition to his tender offer for 170,000 shares of NECO Enterprises Inc at 26 dlrs each that at least 170,000 shares be tendered. He said he has extended the expiration of the offer until April 14. Thorugh March 27, he said 45,696 NECO shares had been tendered. Laroche said he may obtain a short-term loan of up to one mln dlrs from Amoskeag Bank to help finance the purchase of shares under the offer, bearing interest of up to nine pct.  
TELECAST <TCST> COMPLETES ACQUISITION FINANCING. Telecast Inc said it closed on the financing portion of its previously-announced acquisition of approximately 14,600 hotel rooms from <Dynavision Inc>. The three mln dlr financing package was provided by Sanwa Business Credit Corp, a subsidiary of <Sanwa Bank Ltd> of Japan, the company said.  
MAY <MA> TO SELL SYCAMORE DIVISION. The May Department Stores Co said it has signed an agreement to sell its Sycamore Specialty Store Division to an investment group that includes Syacmore senior management. May said it expects to close the deal, which includes the entire division and its 1,000 employees, in April. Sycamore has 111 women's apparel stores in Indiana, Ohio, Illinois, Kentucky and Michigan, May said. May added that the Indiana National Bank of Indianapolis provided a portion of the deal's financing.  
HANSON TRUST <HAN> SELLS UNIT. Reichhold Chemicals Inc said it is part of a group that has purchased PCR Inc from Hanson Trust PLC's SCM Corp subsidiary. It said other group members include Jacksonville, Fla., businessman Jack C. Demetree and managers of PCR. Reichhold said it made a "modest" cash investment.  PCR makes high-performance materials for a variety of industries.  
NECO <NPT> BIDDER EXTENDS TENDER OFFER. Investor David LaRoche said he has extended his cash offer to buy 170,000 shares of NECO Enterprises Inc at 26 dlrs each until April 14. The tender offer was to have expired yesterday. In a filing with the Securities and Exchange Commission, LaRoche, a North Kingstown, R.I., investor who already holds nearly one-third of NECO's total outstanding commonstock, also waived a condition of his offer that a minimum of 170,000 shares actually be tendered. NECO has 957,000 shares outstanding.  
UAL <UAL> COMPLETES BUY OF HILTON INT'L. UAL Inc said it completed the acquisition of Hilton International from Transworld Corp <TWT>, paying 982.5 mln dlrs in cash and securities. Hilton International will add 90 hotels to UAL's Westin hotel unit, which operates 61 hotels. The two chains will have a total of 151 hotels with 67,000 rooms and 71,000 employees, it said. Harry Mullikin, chairman and chief executive of UAL's Westin Hotel unit, has been elected to the additional post of chairman and chief executive of Hilton International. UAL will change its name to Allegis at its annual meeting.  
OCCIDENTAL <OXY> SELLS UNIT TO <HENKEL KGAA>. Henkel KGaA of Dusseldorf, West Germany, said it has completed the acquisition of the Process Chemicals Division of Occidental Petroleum Corp's <OXY> Occidental Chemical Corp subsidiary for undisclosed terms. Process Chemicals, acquired from Diamond Shamrock Corp <DIA> in September, makes specialty chemicals for a variety of industrial markets and has annual sales of about 160 mln dlrs.  
AMERICAN <AMR> SETS SCHEDULE FOR AIRCAL MERGER. AMR Corp's American Airlines unit said it plans to complete the integration of AirCal into its operations within four to five months. American's merger with AirCal, announced last November, received final approval from the Department of Transportation yesterday. American said Richard D. Pearson, coordinator of the airline's merger activities, will become chairman and chief executive officer of AirCal during the period up to completion of the merger. American said Pearson succeeds William Lyon, who has been elected to AMR's board. It added that David A. Banmiller will continue as AirCal's president and chief operating officer.  
GENCORP SAYS IT EXPECTS TO COMPLETE SALE OF WOR TV THIS WEEK, ALL CHALLENGES RESOLVED.  GENCORP SAYS IT EXPECTS TO COMPLETE SALE OF WOR TV THIS WEEK, ALL CHALLENGES RESOLVED  
BUTLER <BTLR> TO BUY SKYLIGHT MANUFACTURER. Butler Mfg Co said it signed a memorandum of intent to acquire Naturalite Inc, a manufacturer of skylights. It said Garland, Texas-based Naturalite had sales in 1986 of about 20 mln dlrs. Terms were not disclosed.  
TRADESTAR <TIRR> ACQUIRES IMAGE VIDEO. Tradestar Corp said it acquired <Image Video Inc> for an undisclosed sum. The company said Image Video produces and distributes videos for the home market. Image Video is scheduled to release 20 video projects in 1987, it said.  
GENCORP SAYS ALTERNATIVE TO HOSTILE TENDER TO BE ANNOUNCED WITHIN A WEEK.  GENCORP SAYS ALTERNATIVE TO HOSTILE TENDER TO BE ANNOUNCED WITHIN A WEEK  
GENCORP <GY> ALTERNATIVE PLAN DUE WITHIN A WEEK. A. William Reynolds, chairman and chief executive of GenCorp Inc, told shareholders he expects to announce a company alternative to a 100-dlr-per-share hostile tender within a week. Last night the company urged shareholders to reject the tender. Reynolds urged shareholders to be patient, saying the group sponsoring the tender offer had months to evaluate GenCorp while "we have had only 10 days to respond." Reynolds also disclosed the company has resolved legal challenges to its planned sale of WOR TV, serving the New York City market, and expects to complete the sale by Friday. Reynolds said the company expects to book an after tax gain of 250 mln dlrs from the sale of WOR TV. The company plans to sell the station to MCA Inc <MCA> for 387 mln dlrs. Reynolds did not specify whether the legal challenges were dropped or dismissed. The Federal Communications Commission has already approved the station's sale. Money from the sale of the station will play a role in helping develop an alternative to the tender offer co-sponsored by AFG Industries Inc <AFG> and Wagner and Brown, Reynolds said. He provided no other details. Randall Hubbard, chairman of AFG, and Joel Reed, chief financial officer of Wagner and Brown, attended the meeting, which was shifted from a tire plant to a downtown hotel. About 300 people were present despite an overnight snowstorm. Hubbard and Reed chatted briefly with Reynolds after the meeting but declined to discuss their proposal with reporters. Reynolds told the shareholders friends and family members have been telling him "Bill, just don't pay greenmail" to end the takeover threat. Greenmail describes a buyout of a minority shareholder at a price not available to other holders. Reynolds said he considers it a "repugnant device." Shareholders elected management's slate of 11 directors. Mario Gabelli, head of a New York investment firm which owns a large block of stock, proposed one nominee for the board. Gabelli said the unsuccessful attempt was designed to "stiffen the backbone of the board to discourage greenmail." Hubbard and Reed reiterated previous statements that they are open to negotiations with GenCorp. Asked about severance contracts for key executives in the event of a shift in control of the company, Reynolds asserted "we're developing alternatives that would not result in a change in control." Asked whether the company's plan would be superior to any proposal of AFG and Wagner and Brown, Reynolds commented, "We know the company, we know the values and we know the opportunities better than any outside group." In response to a question about whether any units are up for sale, he said only that GenCorp is evaluating alternatives.  
TALKING POINT/BORG-WARNER CORP <BOR>. Borg-Warner Corp will vigorously resist GAF Corp's 46-dlr-per-share takeover offer, but the Midwest conglomerate may fall prey to another offer, either from GAF or its own management, analysts believe. Analysts also said Borg-Warner may attempt to escape GAF through a restructuring. The speculation pushed Borg-Warner's stock up 1-3/8 to 48-1/2 in heavy trading. Analysts predicted feisty GAF Chairman Samuel Heyman will stage a tough campaign to gain control of Borg-Warner so he can add its profitable plastics and chemical business to GAF. "It seems from at least their dealing with (raider Irwin) Jacobs that they don't want to be taken over. The question is now do they acquiesce to GAF. I think instinctively, they want to remain independent," said Dudley Heer of Duff and Phelps. Borg-Warner has been under siege by takeover speculation for almost a year. Last week, Jacobs' investment vehicle, Minstar Inc, and an investor group sold its 10.1 mln Borg-Warner shares. The same day, GAF Corp raised its stake by 9.1 mln shares to 19.9 pct of the outstanding. Jacobs was interested in buying the company, but took no steps toward a transaction. "Their (Borg-Warner) policy has been to stonewall them for the last nine months. It's been one of the dullest corporate battles I've seen," said one analyst. The battle, however, has heated up, and the range of breakup values on Wall Street span from the current market price to almost 60 dlrs per share. Most analysts said they think a price in the low 50s would be appropriate. Arbitragers speculate that GAF will not give up easily on its 3.16 billion dlr offer to buy the balance of Borg-Warner. Analysts who know GAF predict Heyman will either end up with Borg-Warner or enrich his chemicals and building materials company in some other way. Heyman two years ago attempted an unsuccessful takeover of Union Carbide Corp, but GAF benefited from that company's restructuring. "Borg Warner can't quibble that it's not a legitimate offer. It seems to me the short of it is Borg Warner is kind of between a rock and a hard place. They either have to accept a 46 dlr proposal or perhaps work a deal where it's sweetened. I personally think the company is (worth) around 55 dlrs per share," said Pershing analyst Richard Henderson. Henderson also speculated the company might attempt a restructuring such as the one carried out by Goodyear Tire and Rubber Co last year when it was being courted by Sir James Goldsmith. The company bought back the financier's stock and carried out a wider share repurchase. Arbitragers, however, said they do not believe Heyman is seeking "greenmail," or the repurchase of his stock by the company at a premium. Analysts noted that Heyman seems to have no problems with financing the transaction. Previously associated with "junk bond" experts, Drexel Burnham Lambert Inc, GAf said it would finance its Borg-Warner takeover with bank financing. GAF said it would make a tender offer following a merger agreement approved by the Borg-WArner board and conditioned on the board's recommendation of the tender offer and merger. Heyman said in a letter to Borg-Warner that he expects a merger would provide job security for Borg-Warner employees since the two companies businesses overlap. Analysts, however, believe Heyman would sell off assets he did not want to repay debt from the transaction. GAF's stock rose 1-5/8 today, to 48-5/8. "I believe, obviously, if GAF takes over Borg-Warner at the level it is proposing it would enhance GAF share values substantially," said Oppenheimer analyst Charles Rose. He said at 46 dlrs per share, Heyman's average cost for the company's stock would be 44 dlrs per share based on GAF's current holdings. Rose said the Borg-Warner plastics and chemical business, which makes thermo-plastics is the asset attracting Heyman. Analysts said it accounts for a third of Borg's earnings. The plastics are used in telephone equipment, office equipment and appliances. "Borg has half the market in the U.S. and is the leading technical player and the leading innovator," Rose said. Its competitors are Dow Chemical Co <DOW> and Monsanto Corp <MTC>, he said. Borg-Warner also has an automotive parts business, and a protective systems business, which includes Wells Fargo security guards. It also has an information services business, and is trying to sell its financial services business. Borg-Warner earned 206.1 mln dlrs or 2.35 dlrs per share on revenues of 3.62 billion dlrs in 1986. Smaller GAF, in 1986, earned on an operating basis 80.7 mln dlrs or 2.22 dlrs per share on sales of 753.8 mln dlrs. GAF's net earnings included an after tax gain of 201.4 mln from its participation in a Union Carbide exchange offer, a special union carbide dividend, and the sale of its Union Carbide shares.  
MANHATTAN NAT'L <MLC> HOLDERS VOTE STOCK SALE. Manhattan National Corp said its shareholders overwhelmingly approved a proprosal through which <Union Central Life Insurance Co> took control of the company by acquiring about 3.6 mln shares of newly issued Manhattan National common stock for 43.2 mln dlrs. The company said the transaction gives Union Central, a Cincinnati-based mutual insurance company, a total of 8,804,397 shares of Manhattan National stock, or 52.2 pct of the total outstanding. Manhattan National said about three mln dlrs of the invested funds will be used to repay short-term debt and two mln dlrs has been earmarked for other short-term needs. The remainder will be available for the company's insurance units, or for other business purposes, it said. Charles C. Hinkley, president and chief executive officer of Union Central, is expected to be named chairman, president and chief executive of Manhattan National, the company said.  
QUANTUM VENTURE UPS COMPUTER NETWORK<CMNT> STAKE. Computer Network Technology Corp (CNT) said that <Quantum Venture Partners LP>, a private investment limited partnership, has acquired an additional 600,000 shares of CNT common stock, raising its stake in CNT to 15.3 pct from 9.6 pct of the currently outstanding shares. CNT said Quantum bought the shares by exercising 1.5 mln dlrs in warrants, bringing its total investment in CNT to 2.5 mln dlrs. CNT also said <Sand Technology Systems Inc> of Canada bought two of its CHANNELink networking units for a data processing service for major health care facilities in Canada.  
QUEST <QBIO> SIGNS PACT WITH ALZA <AZA>. Quest Biotechnology Inc said its Quest Blood Substitute Inc subsidiary executed an agreement with Alza Corp <AZA> which will make Alza a preferred shareholder of its subsidiary. Quest said the agreement also offers Alza the right to acquire up to 25 pct of the unit's equity in exchange for the acquisition of patent rights to Alza technology in an area where Quest has an interest. Quest also said its signed a merger agreement with <Hunt Research Corp> and its affiliate <ICAS Corp>. Quest said it expects to complete the merger within the next several weeks.  
CHUBB <CB> COMPLETES SOVEREIGN <SOVR> BUYOUT. Chubb Corp said it completed the previously announced acquisition of Sovereign Corp. Under terms of the acquisition, Sovereign shareholders will receive, in a tax-free exchange, 0.1365 share of Chubb common for each Sovereign share held. Chubb said the transaction was valued at 9.11 dlrs a share based on the closing price of its stock on March 30.  
INVERNESS BUYS ASSETS FROM PARENT SILVERTON. <Inverness Petroleum Ltd> said it acquired the oil and gas assets of its controlling shareholder <Silverton Resources Ltd> for 26.4 mln dlrs, effective March 3, 1987. Inverness said it issued 2,640,000 class A convertible retractable redeemable preferred shares in exchange for the assets, which include all Silverton's oil and gas properties, undeveloped acreage and its shares of Australian subsidiary S.R.L. Exploration Pty Ltd. The preferred shares were immediately retracted for cash, the company said. The transaction resulted in a discharge of Silverton's bank debt of 21.0 mln dlrs and a three mln dlr loan to Inverness from Silverton, Inverness said. As a result of the acquisition, Inverness has bank debt of 18.0 mln dlrs, it said.  
BRISTOL-MYERS TRUST <BYU> EXTENDS EXPIRATION. <Americus Shareowner Service Corp> said the Americus Trust for Bristol-Myers will continue to accept tendered Bristol-Meyers Co <BMY> shares until December one, extending the original expiration date of April one for eight months. If the common stock price exceeds the trust's termination price of 110 dlrs, Americus Shareowner Service said, the trust will be temporarily closed until the price of the underlying stock falls below the termination price.  
QUEST BIOTECHNOLOGY <QBIO> UNIT IN MERGER PACT. Quest Biotechnology Inc said its new subsidiary, Quest Blood Substitute Inc, signed the agreement and plan of merger with Hunt Research Corp and its affiliate, ICAS Corp. It said Quest Blood expects to complete the merger within the next several weeks. Terms were not disclosed. In a related transaction, Quest Blood said it executed an agreement with Alza Corp, which will make Alza a preferred shareholder of Quest Blood and offer Alza the right to acquire a total equity position of up to 25 pct of Quest Blood in exchange for acquisition of patent rights to Alza technology.  
LINCOLN FOODSERVICE <LINN> COMPLETES PURCHASE. Lincoln Foodservice Products Inc said it completed purchasing certain assets of Redco product line of food slicers, cutters and wedgers from the Dean/Alco Food Prep division of <Alco Foodservice Equipment Co.> Terms were not disclosed.  
WILSON BROTHERS COMPLETES SALE. Wilson Brothers said it completed the sale of most of the assets of its Enro Shirt Co Inc, Enro-At-Ease Inc and Foxcroft Shirt Ltd subsidiaries to Enro Acquisition Corp for about 24.2 mln dlrs, half in cash and half in subordinated promissory notes. Enro Acquisition is a newly formed corporation and owns Ramar Intercapital Corp and Wilson's chief operating officer, V. Jerome Kaplan, and other managers. Enro Acquisition also assumed most of the units' liabilities including a 6.2 mln dlrs term loan. Completion of the sale and recent sales of substantially all the assets of the company's 50 pct owned affiliate GMW Industries INc, are expected to result in a net gain of about nine mln dlrs in the first quarter of 1987. For the year ago first quarter, Wilson reported net income of 28,000 dlrs, including a 103,000 dlrs credit, on sales of 15.8 mln dlrs.  
STANDEX INTERNATIONAL <SXI> BUYS BRITISH FIRM. Standex International Corp said it acquired <Alan Duffy Engineering Ltd> of Blackburn, Lancashire, England, for an undisclosed amount of cash. The newly-acquired company will operate as part of Standex's Perkins division, the company said.  
STERLING DRUG <STY> SELLS ASSETS OF SUBSIDIARY. Sterling Drug Inc said it sold the assets of its subsidiary Greene Dental Products Inc to Rinn Corp, of Elgin, Ill. The cash purchase price was not disclosed. Greene produces and sells dental X-ray tabs, mount products and record systems.  
SCAN-GRAPHICS, CAPTIVE VENTURE CAPITAL MERGE. <Scan-Graphics Inc> said it has completed a merger with <Captive Venture Capital Inc> in which former shareholders of Scan-Graphics have beome majority shareholders of the merged company and the Scan-Graphics board has been named the board of the merged company. It said the merged company is now known as Scan-Graphics Inc and expects to be listed on the NASDAQ system soon. It said Captive Venture issued 1,600,000 restricted preferred shares convertible into 16 mln common shares for Scan-Graphics.  Captive had 2,649,500 common shares outstanding before the merger.  
TRIBUNE <TRB>, SCRIPPS <SCRP> EXCHANGE PAPERS. Tribune Co said it exchanged cash and the assets of eight of its Sunbelt Publishing Co community publications circulated in the Naples and Fort Myers, Fla., area for assets of nine community papers in suburban Tampa and St. Petersburg published by Gulf Coast Newspapers Inc. Gulf Coast is a subsidiary of the E.W. Scripps Co (doing business as Scripps Howard). No additional financial details were disclosed.  
ROYEX OFFERS 50 DLRS/SHR AND 40 DLRS/WARRANT FOR INTERNATIONAL CORONA.  ROYEX OFFERS 50 DLRS/SHR AND 40 DLRS/WARRANT FOR INTERNATIONAL CORONA  
GOULD <GLD> DIVISION GETS FINANCING. Gould Inc's systems protection division said it selected Merrill Lynch Interfunding INc to provide financing for the purchase of the division from the parent company. Terms were not disclosed. The agreement was announced in February and Gould expects the transaction to be completed by the end of April. The agreement assures the retention of more than 600 jobs at a northeast Philadelphia plant which had been in jeapardy when Gould had accepted a tentative offer from Westinghouse INc which was later terminated.  
WELBILT <WELB> COMPLETES ACQUISITIONS. Welbilt Corp said it completed the previously announced acquisitions of the assets of L and M Manufacturing Co and Food Machinery Engineering Co, two manufacturers of automated bakery production equipment headquartered in Toronto.  
SCHWAB COMPLETES PURCHASE OF SCHWAB AND CO. Charles Schwab announced the completion of the 280-mln-dlr purchase from BankAmerica Co of Charles Schwab and Co Inc and its holding company Charles Schwab Corp. The leveraged buyout is being financed by a syndicate of seven banks led by the Security Pacific National Bank unit of Security Pacific Corp <SPC>, the announcement said. Charles Schwab and Co is the nation's largest discount brokerage firm. The Schwab announcement said BankAmerica received 175 mln dlrs in cash, 50 mln of 10 pct senior subordinated debentures, 55 mln dlrs of nine pct junior subordinated debentures and the right to receive 15 pct of the appreciated value of the common equity of the new company over a maximum period of eight years. Security Pacific also acquired a stock appreciation right, equal to 1.8 pct of the value of the new company's fully diluted common stock, Schwab said. The right is exchangeable into warrants upon transfer to a Security Pacific non-affiliate, Schwab said. BankAmerica originally acquired Schwab in 1983 for 57 mln dlrs worth of BankAmerica common stock. The sale of the profitable discount brokerage firm back to Charles Schwab was aimed at raising capital and was seen by banking analysts as a means of heading off a hostile takeover attempt by First Interstate Bancorp <I>.  
ROYEX MAKES BID FOR INTERNATIONAL CORONA. <Royex Gold Mining Corp> said it is making an offer for <International Corona Resources Ltd> of 50 dlrs per share and 40 dlrs per warrant. The offer covers four mln Corona common shares and all outstanding 9.50 dlr Corona share purchase warrants expiring August 31, 1987, Royex said. Royex said that if it gains four mln Corona common shares, its interest in Corona will increase to 50 pct from 38 pct. It also said that if more than four mln shares are tendered, it will pay for them on a pro rata basis. Royex said the purchase price for each Corona share consists of one Royex convertible retractable zero coupon Series B first preference share at 20 dlrs nominal value, one Royex convertible 6-1/2 pct Series C first preference share at 20 dlrs nominal value, one five-year 7.50 dlr Royex share purchase warrant and four dlrs in cash. The price for each Corona warrant consists of 1.75 convertible retractable zero coupon Series B first preference share at 35 dlrs nominal value and one five-year 7.50 Royex share purchase warrant. Royex said both series of preference shares will be convertible into Royex common shares, initially on a basis of 3.33 common shares for each preference share converted.  
BUTLER <BTLR> TO PURCHASE NATURALITE. Butler Manufacturing Co said it signed a letter of intent to purchase <Naturalite Inc>, a designer of skylights. Terms were not disclosed. Naturalite had sales of about 20 mln dlrs in 1986. The transaction is expected to be completed in May and subject to both boards' approvals.  
SAFETY-KLEEN <SK> COMPLETES ACQUISITION. Safety-Kleen Corp said it has completed the acquisition of McKesson Envirosystems Co, a unit of McKesson Corp <MCK> for an undisclosed amount. Safety-Kleen, an industrial, automotive parts cleaning service, said McKesson Envirosystems has solvent recycling plants in Illinois, Kentucky and Puerto Rico.  
ALLIED-SIGNAL <ALD> COMPLETES UNIT SALE. Allied-Signal Inc said it completed the previously announced sale of its Linotype Group to Commerzbank AG of West Germany. The purchase price was not disclosed. Eschborn, West Germany-based Linotype had 1986 sales of more than 200 mln dlrs, the company said.  
GAF <GAF> PLANS NO CHANGES IF OFFER ACCEPTED. GAF Corp chairman Samuel Heyman told Reuters he did not foresee major changes in Borg-Warner <BOR> if GAF's 46 dlr-per-share offer to acquire Borg-Warner is successful. "We have great respect for Borg-Warner mangagement," Heyman said, following a speech at the American Institute of Chemical Engineers annual meeting. "We don't have any particular changes in mind." Earlier today, GAF announced that a 3.16-billion-dlr-offer was presented to the board of directors of the Chicago-based company. Last week, GAF had purchased additional shares of the company for 40-1/8 dlrs, increasing its stake in Borg-Warner to 19.9 pct. In 1985, GAF made an unsuccessful effort to acquire Union Carbide Corp for five billion dlrs, and has since expressed an interest in acquiring a chemical company that would complement its own chemical business. When asked whether GAF would consider selling the non-chemical assets of Borg-Warner if its takeover offer is accepted, Heyman declined to comment. He also refused to say whether GAF would consider increasing its the dollar value of its takeover offer if the initial proposal is rejected. Heyman emphasized that he considered the GAF offer to Borg-Warner to be a friendly one. "We think we made a fair offer that is good for Borg-Warner management and good for its shareholders," Heyman said. In his speech, Heyman said he feared too many chemical companies were attempting to specialize in the same high margin niche products. He said they were turning their backs on core commodity chemical businesses. Heyman said the chemical industry has taken a total of seven billion dlrs in pre-tax writeoffs during the past two years to trim balance sheets. He predicted that the U.S. chemical industry, which reported a total of 13 billion dlrs in 1986 profits, would see a 20 pct gain in earnings this year because of increasing exports, cheaper feedstock costs and the weakened U.S. dlr.  
PHILADELPHIA SUBURBAN <PSC> BUYS SOFTWARE FIRM. Philadelphia Suburban Corp said it acquired Mentor Systems Inc, a Lexington, Ky., computer software company, for common stock. Detailed terms were not disclosed. Mentor specializes in public sector accounting systems. It has 73 employees at its Lexington facility, four branch offices in the Midwest and one in New York.  
HOLDER COMMUNICATIONS <HOLD> TO BUY FIVE FIRMS. Holder Communications Corp said it agreed to buy five privately held companies with combined 1987 revenues expected to be about 25 mln dlrs. Holder plans to issue 32 mln common shares to buy the Nashville-based companies, all of which are owned by Jack Norman and Joe Shaw, their families and employees. The companies include radio stations WKXC-AM and WWKZ-FM, which operate in the New Albany/Tupelo, Miss., market, and General Masonry Inc, a contractor in the Southeast. The acquisitions are subject to approval by Holder shareholders and the Federal Communications Commission.  
INNOVEX <INVX> COMPLETES PURCHASE OF LUCHT. Innovex  Inc said it has completed the purchase of substantially of the interest in Lucht Engineering Inc that it did not already own. Prior to this move Innovex owned 79 pct of Lucht, the company said. Innovex said it bought the shares by exchanging 293,101 shares of unregistered Innovex common stock. Innovex president, Thomas Haley, said the exchange is non-dilutive and will cause a slight increase in Innovex's fully diluted earnings per share during the last half of fiscal 1987. Lucht will continue to function as a unit of Innovex, Innovex said.  
LILLY <LLY> CUTS LIPOSOME CO <LIPO> STAKE. Eli Lilly and Co told the Securities and Exchange Commission it cut its stake in Liposome Co Inc to 500,000 shares, or 4.0 pct of the total outstanding common stock, from 900,000 shares or 7.3 pct. Lilly said it sold 400,000 Liposome common shares on March 17 at eight dlrs each. As long as Lilly's stake in Liposome is below five pct, it is not required to report any further dealings it has in the company's stock.  
ACCELERATION <ACLE> CUTS STAKE IN UNITED COASTS. Acceleration Corp said it sold a 24.9 pct stake in the common stock of <United Coasts Corp> to the <Sheet Metal Workers' National Pension Fund>. The company said it agreed to sell the fund an additional 5.1 pct of Hartford, Conn.-based United when the fund receives approval from the director of insurance of the state of Arizona. The company said today's sale reduced its holdings in United to 25 pct. The second sale, when completed, will lower its stake to 19.9 pct, Acceleration said. The company said the proceeds from both sales will be roughly equal to the 3,330,000 dlrs it originally invested in United Coasts in late 1985 even though it will retain a 19.9 pct stake. Acceleration said it plans to include gains from the stock sales in its results for the first and second quarters of 1987.  
OPPENHEIMER SELLS SIX PCT CYCLOPS <CYL> STAKE. Oppenheimer, the brokerage and investment subsidiary of Oppenheimer Group Inc, told the Securities and Exchange Commission it sold its entire 6.0 pct, stake of Cyclops Corp. Oppenheimer said it sold the 243,400-share stake on March 27 at 95.00 dlrs a share. It said it initially bought the stock in connection with risk arbitrage and other investment activities in the ordinary course of its business.  
TISCH BROTHERS LOWER TOSCO <TOS> STAKE. An investment partnership led by four sons of Loews Corp <LTR> Chairman Lawrence Tisch said it cut its Tosco Corp stake to the equivalent of 1,499,985 shares, or 4.95 pct of the total, from 1,666,650 shares, or 5.5 pct. In a filing with the Securities and Exchange Commission, the partnership, FLF Associates, said it sold 10,000 shares of Serier E convertible preferred stock on March 26 for 34.125 dlrs each and 5,000 shares of preferred stock on March 27 at 35.25 dlrs each. The sales leave the Tisch brothers with 135,000 shares of preferred stock which can be converted into 1,499,985 shares of common stock.  
COMINCO <CLT> SELLS STAKE IN CANADA METAL. Cominco Ltd said it sold its 50 pct stake in Canada Metal Co Ltd to Canada Metal senior management for an undisclosed sum. Cominco said the sale was part of its previously announced policy of divesting non-core businesses. Canada Metal is a Toronto-based producer of lead alloys and engineered lead products. Canada Metal production figures were not immediately available.  
INVESTOR GROUP CUTS DBA SYSTEMS <DBAS> STAKE. A group led by New York investors David Bellet and Chester Siuda said it lowered its stake in DBA Systems Inc to 100,000 shares, or 3.7 pct of the total outstanding, from 170,000 shares, or 6.3 pct. In a filing with the Securities and Exchange Commission, the group said it sold 70,000 DBA common shares between Feb 13 and March 23 at prices ranging from 18.25 to 20.00 dlrs a share. So long as the group's stake in DBA is below five pct, it is no longer required to report its further dealings in the company's common stock.  
EMERY AIR FREIGHT CORP TO OFFER 40 DLRS/SHR FOR PUROLATOR COURIER CORP.  EMERY AIR FREIGHT CORP TO OFFER 40 DLRS/SHR FOR PUROLATOR COURIER CORP  
EMERY AIR <EAF> TO BID FOR PUROLATOR <PCC>. Emery Air Freight Corp said it plans to begin tomorrow a 40 dlr a share tender offer for 83 pct of the outstanding common stock of Purolator Courier Corp. The company said the tender offer is the first step in a plan to buy 100 pct of the Purolator shares. Following the tender offer, Emery said it would offer 40 dlrs of junior subordinated debentures for each remaining Purolator share outstanding. On March one, Purolator agreed to a 35 dlr a share leveraged buyout by eight Purolator executives and EF Hutton LBO Inc, a unit of EF Hutton Group Inc. Emery said it had tried unsuccessfully to open merger discussions with Purolator before the company accepted the management-led buyout offer. In a letter to Purolator's chairman, Nicholas F. Brady, Emery's chairman, John C. Emery, said the company would still prefer to negotiate with Purolator. But he said the imminent expiration of the leveraged buyout group's offer has forced the company to make an unsolicited tender offer of its own. Emery said its offer is scheduled to expire at 2400 EST on April 28, unless extended. The company said conditions of the offer include the receipt of at least two-thirds of Purolator's shares outstanding, on a fully diluted basis, and the repeal of its share purchase rights plan. Emery said the offer is also subject to completion of the previously announced sale of Purolator's Canadian operations. Emery said Chemical Bank, Bankers Trust, Morgan Guaranty Trust Co and Salomon Bros had agreed to provide financing for the tender offer. It said the junior subordinated debentures to be issued in the subsequent merger will carry a 13 pct annual interest rate, payable twice a year. For the first three years after the notes are issued, interest will be paid, at Emery's option, in cash or in additional notes, Emery said. It added that the notes will not be subject to redemption for one year after they are issued. Emery said Purolator would operate as a wholly owned unit of the company after the merger. It said it hoped Purolator's management would continue with the company. "We believe that our two companies provide an excellent fit with each other and that the combination will enable each of us to better serve our existing customers and meet the challenges of the future," Emery's chairman said in his letter. He said a merger would significantly enhance the financial turnaround that Purolator's management had previously forecast. Officials at Purolator could not immediately be reached for comment on the offer, which was released several hours after the stock market had closed. Emery's stock closed up 1/2 at 12-5/8. Purolator closed at 34-7/8, off 5/8.  
SWEDEN'S BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER. TODAY - OFFICIAL.  SWEDEN'S BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER TODAY - OFFICIAL.  
COURT BLOCKS DELTA-WESTERN AIRLINES MERGER. A U.S. Appeals court last night blocked the 860 mln dlr merger of Delta Airlines Inc <DAL.N> and <Western Airlines> just hours before it was to go into effect because of a dispute over union representation. The ruling came in a lawsuit in which the Air Transport Employees union said Western's management should fulfil a promise to honour union contracts if a merger took place. The airlines argued that Western's promise could not be enforced in a takeover by a larger company. Airlines officials could not be reached for comment on the ruling, which halts the merger until arbitration on the dispute is completed.  
BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER - OFFICIAL. Boliden AB <BLDS ST> mining and metals group said it will announce a major foreign corporate takeover today involving a company with an annual turnover of two billion crowns. A Boliden spokesman told Reuters details of the announcement would be given at a news conference by chairman Rune Andersson at 1030 gmt today. He said the company involved employed 4,000 people, but declined to name the takeover price or say what field the firm operated in. Share analysts said they expected Boliden to announce it will be taking over the U.S. Allis-Chalmers Corp <AH.O> but company officials refused to confirm the reports ahead of the news conference.  
AJINOMOTO TO BUY OUT JOINT FOOD VENTURE PARTNER. Ajinomoto Co Inc <AJIN.T> said it will sign around end-April to buy the 50 pct of <Knorr Foods Co Ltd>, capitalised at four billion yen, that it does not already own from its U.S. Partner <CPC International Inc>. Ajinomoto will also acquire 50 pct each of CPC's two sales subsidiaries and six production units in Hong Kong, the Philippines, Singapore, Malaysia, Taiwan and Thailand, he said. The total cost of the acquisition is 340 mln dlrs, the spokesman said.  
U.K. MERGER CLEARANCES. The Secretary of State for Trade and Industry said he had decided not to refer the proposed acquisition by Reed International Plc <REED.L> of <Technical Publishing Company Inc> to the Monopolies and Mergers Commission. The proposed acquisition by <Rosehaugh Plc> of <The General Funds Investment Trust Plc> was also cleared.  
SWEDEN'S BOLIDEN AB TAKES OVER U.S. ALLIS-CHALMERS CORP FOR. 600 MLN CROWNS - OFFICIAL  SWEDEN'S BOLIDEN AB TAKES OVER U.S. ALLIS-CHALMERS CORP FOR 600 MLN CROWNS - OFFICIAL  
MITSUBISHI HEAVY, C. ITOH TO SELL TRIGUNA STAKES. Mitsubishi Heavy Industries Ltd <MITH.T> (MHI) and C. Itoh and Co Ltd <CITT.T> have decided to sell their combined 65 pct stake in Indonesia's <Pt Triguna Utama Machinery Industries> to <Caterpillar Tractor Co>,  spokesmen for the two Japanese companies said. Triguna, set up in 1982, is owned 40 pct by MHI and 25 pct by C. Itoh and 35 pct by an Indonesian company. It makes about 10 forklift trucks and a similar number of excavators each month in technological cooperation with MHI. The spokesmen said the sale results from an expected restructuring later this year of the 50/50 Caterpillar/MHI joint venture Japanese company <Caterpillar Mitsubishi Ltd>, formed in 1963. They said the venture will be renamed <Shin Caterpillar Mitsubishi Ltd> and capitalised at 23 billion yen. It will still be owned equally by MHI and Caterpillar and will be set up with the aim of centralising MHI's excavator business.  
SWEDEN'S BOLIDEN AB TAKES OVER MINING GEAR UNITS OF. ALLIS-CHALMERS CORP FOR 600 MLN CROWNS  SWEDEN'S BOLIDEN AB TAKES OVER MINING GEAR UNITS OF ALLIS-CHALMERS CORP FOR 600 MLN CROWNS  
BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION. Swedish mining and metals group Boliden AB <BLDS ST> said it would buy the mining equipment operations of the U.S. Allis-Chalmers Corp <AH.O>, amounting to more than 50 pct of group sales, for 600 mln crowns. Boliden president Kjell Nilsson told a news conference the acquisition of the Allis-Chalmers unit, which he described as the world's leading producer of equipment for the mineral processing industry, would yield positive synergy effects for Boliden mining, metals and engineering operations. Nilsson said the takeover also will provide opportunities to cooperate with the mining and materials handling operations of Boliden's parent company, <Trelleborg AB>. He said Allis-Chalmers was selling out because it needed new cash after suffering big losses in its farm equipment operation. The deal is subject to approval by Allis-Chalmers' annual meeting, company officials said.  
INTERNATIO-MUELLER ACQUIRES CANADIAN COMPANY. Internatio-Mueller NV <INTN.AS> said it will acquire <Promac Controls Inc> of Canada but declined to comment on the amount of the payment, which will be in cash. Promac, which produces measurement and regulating equipment, has a work force of 50 and had 1986 turnover of five mln guilders, an Internatio spokesman said. He said the takeover fits into the company's drive for expansion in the U.S and Canada and further acquisitions are possible. Promac Controls will be part of Internatio's electrotechnical sector.  
HOOGOVENS CONCLUDES TAKEOVER OF PHILIPS CIREX UNIT. Dutch steel concern <Hoogovens Groep BV> said it had reached agreement with NV Philips Gloeielampenfabrieken <PGLO.AS> on its takeover of Cirex, a specialised Philips precision wax moulding unit. Neither party would reveal financial details of the deal, initially announced in October. Hoogovens said Cirex turnover had grown in recent years to 30 mln guilders in 1986 and it expected further expansion. The unit delivers mainly to the car industry. Hoogovens said the acquisition would strengthen its position as a supplier to industry of high-value metal products.  
BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION. Swedish mining and metals group Boliden AB said it would buy the mining equipment operations of the U.S. Allis-Chalmers Corp, amounting to more than 50 pct of group sales, for 600 mln crowns. Boliden president Kjell Nilsson told a news conference the acquisition of the Allis-Chalmers unit, which he described as the world's leading producer of equipment for the mineral processing industry, would yield positive synergy effects for Boliden mining, metals and engineering operations. Nilsson said the takeover will provide opportunities to cooperate with the mining and materials handling operations of Boliden's parent company, Trelleborg AB. He said Allis-Chalmers was selling out because it needed new cash after suffering big losses in its farm equipment operation. The deal is subject to approval by Allis-Chalmers' annual meeting, company officials said.  
BOND CORP COMPLETES CONSOLIDATED PRESS PURCHASE. Bond Corp Holdings Ltd <BONA.S> said it has completed the 1.05 billion dlr purchase of the electronic media interests of unlisted <Consolidated Press Holdings Ltd>. The new company <Bond Media Ltd> now holds the television, broadcasting and associated businesses previously held by Kerry Packer's Consolidated, Bond Corp said in a statement. Packer, who made the sale in January, will be a director of Bond Media. As previously reported, Bond Media will be publicly floated with a rights issue to Bond Corp shareholders. Bond Media will be 50 pct owned by Bond Corp and is expected to be listed by the end of May, it said.  
SWEDISH MATCH SELLS PORTUGUESE UNIT. Swedish Match AB <SMBS.ST> said it was selling one of its Portuguese subsidiaries, <Sociedade de Iniciativa e Aproveitamentos Florestais Sarl> (SIAF), to the Porto-based <Sonae Group> for an undisclosed price. SIAF, a subsidiary of Swedish Match since 1946, had a turnover last year of 62 mln crowns, the Swedish group said in a statement.  
BOLIDEN SAYS IT NOW LEADER IN MINING GEAR. Swedish mining and metals group Boliden AB <BLDS.ST> said the takeover of the U.S. Allis-Chalmers Corp's <AH.O> mining machinery division made it the world's leading maker of such equipment. President Kjell Nilsson, announcing the 600 mln crown deal, told a news conference Boliden would now become a truly international concern with operations in Brazil, Chile and other big minerals-producing nations. He said the Allis-Chalmers' division, accounting for some 50 pct of the U.S. Group's sales, would fit in well into Boliden.  
U.S. SUPREME COURT ALLOWS DELTA-WESTERN MERGER. U.S. Supreme Court Justice Sandra Day O'Connor early this morning lifted an Appeals Court injunction blocking the planned merger of Delta <DAL> Airlines Inc and Western Airlines <WAL>, the Court said. O'Connor's action came hours after a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco had blocked the merger until a dispute over union representation had been settled by arbitration. A Supreme Court spokesman said O'Connor granted a stay of the injuction, allowing the merger, worth nearly 860 mln dlrs, to go through as planned later today. The Supreme Court spokesman provided no other details. Each of the nine Supreme Court justices has jurisdiction over a particular regional Appellate circuit and has the power to provisionally overturn its rulings without comment. The Appeals Court ruling surprised officials of Atlanta-based Delta, which had been preparing for the merger for months and had already painted Delta logos on airplanes belonging to Western, which has headquartera in Los Angeles. "Our plans were to finalize the merger at midnight tonight," Delta spokesman Bill Berry told the Atlanta Constitution late last night. "There was really very little that remained to be done." The ruling in San Francisco came in a lawsuit that had been filed in a Los Angeles federal court in which the Air Transport Employees union sought to force Western's management to fulfill a promise that it would honor union contracts if a merger took place. The airlines argued that Western's promise could not be enforced in a takeover by a larger company. After learning of the appeals court ruling, Delta officials last night spread the word by telephone that Western employees should report for work today in their old uniforms, not in new Delta outfits. Delta announced last September that it was purchasing Western. The merger took place in December, and Western has been operated as a Delta subsidiary since then. The Western name was to have disappeared at midnight last night. At issue is whether the Western unions would continue to represent Western employees after the integration of the two airlines. While all but eight pct of Western's 11,000 employees are unionized, only Delta's pilots are union members. Delta had maintained that the three unions having contracts with Western -- The Association of Flight Attendants and the Teamsters, as well as the Air Transport Employees -- would be "extinguished" after today.  
CITADEL <CDL> SETTLES WITH GREAT WESTERN <GWF>. Citadel Holding Corp said it has settled its litigation with Great Western Financial corp. The company said under the terms, Great Western has agreed not to acquire or seek to acquire any voting securities of Citadel or propose a merger with Citadel for five years, and Citadel has paid Great Western six mln dlrs. Citadel said it is continuing to pursue its claims against Salomon Inc <SB>, which represented it in connection with the disputed proposed merger with Great Western that was the subject of the litigation.  
SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE. VENTURE FOR CAESARS BID  SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE VENTURE FOR CAESARS BID  
BP <BP> STARTS BID FOR STANDARD OIL <SRD> SHARES. British Petroleum Co PLC said it has started its previously announced 7.4 billion dlr offer to purchase the 45 pct interest in Standard Oil Co that it does not already own for 70 dlrs per share. In a newspaper advertisement, the company said the offer, which is not conditioned on receipt of any minimum number of shares, and associated withdrawal rights will expire April 28 unless extended. BP said it is asking Standard Oil for the use of its shareholder list in disseminating the offer, on which the Standard board has not yet taken a position.  
VISUAL TECHNOLOGY <VSALC> CONTROL CHANGES. Visual Technology Inc said a group led by <Hambrecht and Quist Group> has acquired majority ownership of Visual for 9,250,000 dlrs in equity financing. The company said Hambrecht and Quist president William R. Hambrecht and three other Hambrecht and Quist representatives have been named to the Visual board, with Robert M. Morrill, managing partner of the Boston office of Hambrecht's Hambrecht and Quist Venture Partners unit named chairman.  Clifford G. Zimmer Jr. remains president and chief executive officer. Visual also said about nine mln dlrs of its debt has been converted to equity.  
CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340. MLN DLRS TO AJINOMOTO  CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340 MLN DLRS TO AJINOMOTO  
SOSNOFF ENDS PRATT <PRAT>/SOUTHMARK <SM> DEAL. Investor Martin T. Sosnoff said Southmark Corp and affiliate Pratt Hotels Corp have ended talks with his MTS Acquisition Corp on a possible joint venture for the acquisition of Caesars World Inc. Sosnoff said the talks had not been actively pursued since they were announced March 20, but it had been agreed that unless the discussions were formally terminated, Pratt and Southmark would not initiate a competing tender offer for Caesars World or take any other action that would hamper Sosnoff's current offer to acquire all Caesars shares he does not now own for 28 dlrs each. Sosnoff said his 28 dlr per share bid for Caesars, which is scheduled to expire May 15, still stands, and he remains receptive to negotiating a transaction to buy Caesars on friendly terms. Pratt recently made an apparently unsuccessful bid to acquire control of Resorts International Inc <RTB>, seeming to lose out to Donald Trump.  
CPC INTERNATIONAL <CPC> TO SELL ASIAN STAKES. CPC International Inc said said it has agreed in principle to sell interests in its grocery products operations in Hong Kong, Malaysia, the Philippines, Singapore, Taiwan and Thailand to <Ajinomoto Co Inc> of Japan for 340 mln dlrs. The company said the move will reduce Asian overhead and a substantial part of the proceeds will be used to reduce debt. It said as part of the agreement, its current direct investment in its existing non-consolidated joint venture with Ajinomoto will be converted into a cooperative arrangement for the long-term utilization of technology and trademarks. The company said the change in the Japanese arrangement will give Ajinomoto full equity ownership while leaving CPC a continuing earnings stream and cash flow. The transactions are subject to definitive agreements and government approvals. CPC said not included in the 340 mln dlr consideration are proceeds from the sale of some smaller Asian investments, including a 51 pct equity interest in an oat-based food venture to an Australian partner. The company said the actions being taken under its restructuring program, including the sale of its European corn wet milling business and other assets, overhead reductions and other expense items and the Asian transactions, will have a one-time positive effect on 1987 earnings. CPC said "Although the extent cannot yet be determined, the company expects that 1987 earnings per share will increase by substantially more than the previously estimated 20 pct increase over 1986."  In 1986 CPC earned 2.30 dlrs per share.  
ENERGY DEVELOPMENT <EDP> COMPLETES MAY <MEP> BUY. Energy Development Partners Ltd said it has completed the acquisition of May Energy Partners Ltd for 1,817,697 depositary units following approval yesterday by May Energy unitholders. Energy Development said May Petroleum Inc <MAYP>, general partner of May Energy, will distribute about 35 Energy Development units for each 100 May Energy Partners units to holders of 100 May Energy Partnners units or more and cash to others. Energy Development said the transaction increases its units outstanding to 12.6 mln and raises total proved reserves as of the end of 1986 27 pct.  Angeles Corp <ANG> is general partner of Energy Development.  
SCHERING-PLOUGH <SGP> MULLS DR. SCHOLL'S SALE. Schering-Plough corp said it is considering the sale of its Dr. Scholl's businesses in Europe, Latin America and the Far East, which had sales of about 150 mln dlrs in 1986. The company said the transaction is not expected to have a material impact on earnings.  It said it has engaged Merrill Lynch and Co Inc <MER> to assist in the sale process. Schering said it will retain Dr. Scholl's businesses in the U.S., Canada and Puerto Rico, which had sales of about 135 mln dlrs last year.  
CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER,. EXPLORES ALTERNATIVES  CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER, EXPLORES ALTERNATIVES  
MEDAR <MDXR> ACQUIRES OWENS-ILLINOIS <OI> UNIT. Medar Inc said it acquired Automatic Inspection Devices Inc, a subsidiary of Owens-Illinois Inc, Toledo, Ohio, through an exchange of stock for 80 pct of the company. Automatic Designs and manufactures a line of machine vision systems for the packaging, pharmaceutical, electronics and consumer goods industries.  
ALLIS-CHALMERS <AH> ESTIMATES PROCEEDS OF SALE. Allis-Chalmers Corp said it expects cash proceeds from the proposed sale of its solids processing equipment and minerals systems businesses to exceed 90 mln dlrs, with no material gain or loss anticipated from the planned sale. Closing of the sale to Boliden AB of Sweden would be part of the overall restructure of Allis-Chalmers, which was announced on March Four, the company said. Allis-Chalmers said the business entities included in the transaction had total sales of about 250 mln dlrs in 1986, with total employment of about 4,300. The solids processing equipment business involves manufacture of crushing and related equipment for mining. It consists of operations in Sweden, Australia, Brazil, France, Great Britain, Spain and Appleton, Wis. The minerals systems business has operations in West Allis, Wis., and Lachine, Quebec, Canada.  
CONRAC <CAX> REJECTS MARK IV <IV> OFFER. Conrac Corp said its board has rejected MArk IV Industries Inc's tender offer for all Conract shares at 25 dlrs each, and no Conract director of officer plans to tender any shares. The company said financial advisor <Goldman, Sachs and Co> determined the price to be inadequate. It said its board has instructed management to explore and develop with financial and legal advisors alternative courses of action to maximize shareholder values.  
TAFT <TFB> HAD NOT COMPLETED TV STATION SALE. Taft Broadcasting Co said the sale of its independent television stations to TVX Broadcast Group, which had been set for yesterday, did not occur. TVX and its investment bankers, Salomon Inc's <SB> Salomon Brothers, advised Taft the closing would not be consumated as scheduled, the company said. TVX and Salomon also advised Taft they hope to be able to close in near future, the company said, adding it is prepared to close at any time. A Taft spokeswoman referred all questions to TVX and Salomon. Taft agreed in November to sell the stations in Philadelphia, Washington, Miami, Fort Worth-Dallas and Houston TVX Broadcast for 240 mln dlrs. At the time, Taft said the transaction would result in an after tax charge of 45 to 50 mln dlrs.  
CYCLOPS <CYL> NAMES DIXONS OFFICIALS TO BOARD. Cyclops corp said it has reconstituted its board to include three <Dixons Group PLC> executives following Dixons' acquisition of 83 pct of Cyclops' 4,061,000 shares in a 95 dlr per share tender offer. Cyclops said remaining on the six-member board are chairman and chief executive W.H. Knoell, president and chief operating officer James F. Will and senior vice president William D. Dickey.  
SOUTHMARK <SM> COMPLETES ACQUISITION. Southmark Corp said it has completed the purchase of Georgia International Life Insurance Co from Capital Holding Corp <CPH> for cash and Southmark securities worth over 85 mln dlrs.  
BEECHAM GROUP <BHAMY> TO SELL UNIT. Privately-held investment firm <Dubin Clark and Co> said it has signed a definitive agreement for an investment group it heads to acquire Roberts Consolidated Industries from <Beecham Group PLC> for 45 mln dlrs. Roberts makes and distributes accessories, adhesives and tools used in carpet installation. Dubin Clark said its group includes Roberts management and London investment company <J. Rothschild Holdings PLC>.  It said Ronald J. Dubin will become vice chairman of Roberts and J. Thomas Clark chairman. REUTER^M  
AUTOSPA <LUBE> TO BUY CONTROL OF CARDIS <CDS>. Autospa Corp said it has signed an agreement to purchase 2,400,000 shares of eight pct convertible preferred stock of Cardis Corp -- representing voting control -- for 15 mln dlrs. The company said the preferred purchase will be financed by an investment group led by Autospa. It said it will also receive from Cardis five-year options to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs each, depending on the time of exercise, and warrants to purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each. The company said the exercise of all options and warrants by Autospa would result in a tital investment of 50 to 55 mln dlrs.  Execution of a definitive agreement is expected by April 22, it said, subject to the completion of financing arrangements, and closing is expected by May 15.  
ALLIED SUPERMARKETS <ASU> FILES PROPOSED MERGER. Allied Supermarkets Inc said it filed a registration statement with the Securities and Exchange Commission for a proposed merger with <The Vons Companies>, a supermarket, combination store operator. Allied said the statement covers 140 mln dlrs of senior subordinated discount debentures and 100 mln dlrs of subordinated debentures, principal amounts, with a proposed aggregate offering price of about 100 mln dlrs for each issue. Drexel Burnham Lambert Inc and Donaldson, Lufkin and Jenrette Securities Inc are co-underwriters of both issues, which Allied expects to offer in early June, Allied said.  
1ST SOURCE <SRCE> COMPLETES MERGER. 1st Source Bank said it completed its merger with <Community State Bank> of North Liberty, Ind. The bank said Community State Bank's shareholders approved the merger at a meeting last Saturday, while Monday the directors of 1st Source also approved the move. The merger would add Community Bank's 20 mln dlrs in assets to 1st Source's more than one billion dlrs in assets, 1st Source said.  
FIRST NATIONAL BANK CORP TO BUY BRANCH. First National Bank Corp, the newly formed parent of First National Bank in Mount Clemens, Mich., and Bankers Fund Life Insurance Co, said it reached an agreement to buy a branch in Clinton Township from a nonrelated financial institution. It said the acquisition brings to 10 the number of bank branches in Macomb County. Terms were not disclosed. Separately, the newly formed holding company also said it named Arie Guldemond as chairman and Harold Allmacher as president and chief executive officer.  
MONSANTO <MTC> INVESTS IN BIOTECHNOLOGY <BIOD>. Biotechnology Development Corp said its Medicontrol Corp subsidiary received a 500,000 dlr investment by Monsanto Co's G.D. Searle and Co subsidiary. The company said the investment was made pursuant to an option Searle held, and increases Searle's stake in Medicontrol to 19.8 pct with a total investment of one mln dlrs.  
CHASE <CMB> BUYS BORG-WARNER <BOR> UNIT. Chase Manhattan Corp said Chase Trans-Info, a subsidiary of its Chase Manhattan Bank N.A. unit, has bought Borg-Warner Corp's Traffic Services business, including an Illinois processing center, for an undisclosed sum. Borg Warner Traffic Services provides freight bill pre-audit, payment and information services to industry through Borg-Warner Acceptance Corp. Chase Trans-Info, which offers similar services, is now the largest provider of information services for the transportation industry.  
DELTA AIR LINES COMPLETES ACQUISITION OF WESTERN AIR.  DELTA AIR LINES COMPLETES ACQUISITION OF WESTERN AIR  
DELTA <DAL> COMPLETES WESTERN AIR <WAL> BUY. Delta Air Lines Inc said it completed the acquisition of Western Air Lines Inc this morning. The action follows U.S. Supreme Court Justice Sandra Day O'Connor's overnight granting of Delta and Western's request to stay an earlier injunction against the deal issued by the U.S. Court of Appeals for the Ninth Circuit. More  
MACANDREWS/FORBES UNIT BEGINS OFFER TO BUY ALL REVLON. GROUP NOT ALREADY OWNED  MACANDREWS/FORBES UNIT BEGINS OFFER TO BUY ALL REVLON GROUP NOT ALREADY OWNED  
MACANDREWS/FORBES BEGINS REVLON <REV> OFFER. MacAndrews and Forbes Group Inc said it began an 18.50-dlr-a-share cash offer for all common stock of Revlon Group Inc it does not already own. The offer, which is being made by a wholly owned subsidiary, Revmac Acquisition Corp, is subject to financing and at least 28.5 mln shares being tendered, the company said. MacAndrews and Forbes, wholly owned by Ronald Perelman, chairman of Revlon Group, held about 31.8 pct of the voting power of Revlon as of March 27, a spokesman said. The stake includes about 15.1 pct of Revlon common and 95 pct of its series A preferred stock, he said. More  
DEAK INTERNATIONAL BUYS JOHNSON MATTHEY. Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International said the purchase will expand Deak's operations into the precious metals and wholesale non-ferrous metals trading arenas.  
WALL STREET STOCKS/PUROLATOR COURIER <PCC>. Purolator Courier Corp stock jumped 5-3/8 on a 40 dlr per share takeover offer from Emery Air Freight Corp <EAF>, traders said. Purolator was trading at 40-1/4, 1/4 above the offer price. The Emery offer tops a 35 dlr per share buyout agreement E.F. Hutton LBO Inc reached with Purolator February 27. That offer was to have expired today. Neither Hutton nor Purolator had any immediate comment. "There's probably some speculation out there that there might be another offer," said one analyst.  
DEAK BUYS JOHNSON MATTHEY COMMODITIES. Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International, said the purchase will expand Deak's operations in the precious metals and wholesale non-ferrous metals trading arenas.  
J.C. PENNEY <JCP> TO BUY EQUITY IN BEEBA'S. J.C. PEnney Co Inc said it signed a letter of intent to acquire one mln shares, or a 20 pct equity interest, of Beeba's Creations Inc <BEBA> for 18.75 dlrs a share. Penney said the agreement also calls for Beeba's, a major supplier of junior sportswear, to work with Penny in the establishment of junior specialty shops to be created in about 100 Penney stores in early 1988. Freestanding stores are also being planned, the company said. Beeba's will be the principal source of merchandise to the shops, it said. For the six months ended February 28, Beeba's reported net income of 1.2 mln dlrs on sales of 39.4 mln dlrs. Penney said it will establish an independent merchandising and marketing organization to manage and support the shops which will be staffed by personnel both from within and outside the company. The company said the new agreement would have no impact on its current supplier base and it will continue to work with as braod base of suppliers of junior sportswear as it does in its other merchandise areas.  
PERIPHERAL SYSTEMS <PSIX> AGRESS TO BUY COMPANY. Peripheral Systems Inc said it agreed in principle to acquire the outstanding shares of <Nucell Inc>. The agreement calls for an exchange of one share of Peripheral for each share of Nucell, subject to approval by both companies' boards, it said. Peripheral said its increased involvement in the development of Nucell's nuclear battery technology made the merger practical.  
FIRST CHICAGO <FNB> UNIT BUYS BANKS. First Chicago Corp's American National Bank unit said it completed the acquisition of four suburban Chicago banks with combined assets of about 231 mln dlrs. The banks are National Bank of North Evanston, Elgin National bank, First National Bank of Schiller Park and Merchants and Manufacturers State Bank in Melrose Park. American National now owns nine banks.  
CENTERRE <CTBC> ACQUIRES BENEFIT PLAN SERVICES. Centerre Bancorp said it completed the acquisition of Benefit Plan Services Inc, Maryland Heights, Mo., which specializes in designing and administering small and moderately sized pension plans. Terms were not disclosed.  
UNICORP VOTING STAKE HIKED IN UNION ENTERPRISES. <Union Enterprises Ltd> said holders of 7.2 mln or 80 pct of its class A series one preferred shares requested to retract their shares under terms of the issue, thus raising <Unicorp Canada Corp>'s voting stake in Union to 58 pct from 50. Union said it paid about 90 mln dlrs on April 1 for the retraction, using existing credit lines.  
HORN/HARDART <HOR> UNIT DISPOSES 33 RESTAURANTS. Horn and Hardart Co said it disposed of 33 Bojangles' Chicken 'N Biscuits restaurants in Florida as part of its previously announced retrenchment of its Bojangles' subsidiary. Terms were not disclosed. The company said the restaurants in Orlando, Tampa and Jacksonville markets have incurred the majority of Bojangles' operating losses over the last two years. Due to the transaction, Horn and Hardart is projecting a positive cash flow for the unit for the remainder of fiscal 1987. A spokesman said the disposition consists of a combination of sale, lease and re-franchise agreements. The transaction involves one-quarter of the company-owned Bojangles' restaurants and is in accordance with its restructuring program announced in October 1986. A spokesman said the company is considering the sale or spinoff of the 91-company owned additional restaurants, which are profitable. The company said the disposition will result in no profit or loss for the company because the costs were anticipated in a 34-mln-dlr reserve taken in the third quarter of 1986. The foodservice division, which includes Burger King, Arby's and Tony Roma's, had a pre-tax operating loss of 29.6 mln dlrs in 1986, including the 34.0 mln dlr charge to restructure Bojangles. Excluding Bojangles', the group had revenues of 43.8 mln dlrs. The company said that, pursuant to the restructuring, it has cut general and administrative expenses attributable to Bojangle' by 35 pct.  
CHEMICAL FABRICS <CMFB> AGREEMENT TERMINATED. Chemical Fabrics Corp said an agreement in principle under which OC Birdair Inc would have purchased assets related to the architectural structures business of Dow Corning corp's ODC Inc division has been terminated. Under that agreement, Chemical Fabrics would also have become distributor of Dow Corning's Vestar silicone-coated fiberglass architecural fabrics. OC Birdair is a joint venture of Chemical Fabrics and Owens Corning Fiberglas Corp <OCF> and Down Corning a venture of Dow Chemical Co <DOW> and Corning Glass Works <GLW>. Chemical Fabrics said once the current project backlog of Dow Corning's ODC division is completed, Dow Corning plans to discontinue its design-engineering, fabrication and installation services. Chemical Fabrics said the companies will cooperate on the development of new products for architectural and industrial applications and may supply architectural materials to each other.  
SIS <SISB> COMPLETES WENDY'S <WEN> UNIT BUY. SIS Corp said it has completed the acquisition of its franchisor Sisters International Inc from Wendy's International Inc for 14.5 mln dlrs in stock. It said the purchase includes 35 restaurants in Ohio operates by Sisters, giving SIS a total of 55 restaurants, and franchise relationships in six Midwestern and Southern states.  
CANADIAN TIRE MAJOR HOLDERS NOT EXTENDING PACT. CTC Dealer Holdings Ltd said <Canadian Tire Corp Ltd> controlling shareholders Alfred, David and Martha Billes did not extend an agreement expiring yesterday to tender their shares only to CTC's previously reported offer for 49 pct of Canadian Tire common shares. CTC, which already holds 17.4 pct of Canadian Tire common, said it would therefore not take up any shares tendered under its offer unless they totaled at least 1.1 mln or another 32.7 pct of Canadian Tire common. The Billes control 60 pct of Canadian Tire common. It added that it extended its offer to May 11 at a fixed price of 165.36 dlrs a share. CTC, a group of Canadian Tire dealers, said it expected to know by May 11 if it would obtain approval to appeal a previously reported Ontario court ruling upholding a regulatory decision to block CTC's offer. The dealers' bid was previously blocked by the Ontario Securities Commission because the offer excluded holders of Canadian Tire class A non-voting shares, which make up about 96 pct of company equity.  
HUTTON LBO EXTENDS EXPIRATION FOR 35 DLR/SHR OFFER FOR. PUROLATOR TO APRIL 6 FROM TODAY  HUTTON LBO EXTENDS EXPIRATION FOR 35 DLR/SHR OFFER FOR PUROLATOR TO APRIL 6 FROM TODAY  
CONRAC SAYS IT IS MULLING RESTRUCTURING OR BUYOUT AS. ALTERNATIVES  CONRAC SAYS IT IS MULLING RESTRUCTURING OR BUYOUT AS ALTERNATIVES  
CONRAC <CAX> EXPLORING RESTRUCTURING, BUYOUT. Conrac Corp, whose board has rejected a 25 dlr a share tender offer from Mark IV Industries Inc <IV>, said it is exploring alternatives such as a restructuring, leveraged buyout or takeover of the company. In a filing with the Securities and Exchange Commission, Conrac said its board of directors authorized its financial and legal advisors to explore a several alternatives to the Mark IV offer, which it said it considers inadequate. The alternatives being explored include a restructuring, leveraged buyout or a takeover of the company by another company, Conrac said. Conrac, which said its board discussed the alternatives at special meetings on March 26 and 30, said that its decision on whether to adopt any of the alternatives would hinge on "the future actions of Mark IV" and its unsolicitied tender offer. Putting into effect any of the alternatives being explored could hurt or defeat the Mark IV offer, it said. Board members were also instructed to keep confidential the terms of any transaction that might be entered into until it becomes final, the company said. The board also took other defensive steps, including granting severance agreements to some officers, it said. At a board meeting yesterday, Concac's directors deleted a provision allowing the holder of at least one-third of of all classes of its voting stock to call a special shareholders meeting and deleted another provision allowing shareholders to remove directors without cause, the company said. The defensive moves were taken because Mark IV had said it planned to elect a majority of its designees as directors at a special holders meeting if it succeeded in acquring a majority of the company's common stock in the offer, Conrac said. Conrac's president, vice president and treasurer were given severance agreements, or "golden parachutes," it said. Under the agreements, Conrac President Paul Graf would get a cash payment of twice his annual salary, which was 209,906 dlrs last year, if there were a change of control in the company, including acquisition of 30 pct or more of the company's voting stock, Conrac said. Treasurer Joseph Smorada and Vice President Joseph O'Donnell, who made 143,325 dlrs last year, would get one-and-a-half times his salary if there were a change in control. Smorada's salary was not listed in the SEC filing. The executives would also get cash settlements of options plans and continuation of insurance and other benefits.  
E.F.HUTTON <EFH> EXTENDS PUROLATOR <PCC> OFFER. E.F. Hutton Group's E.F. Hutton LBO Inc unit said it extended the expiration date for its 35 dlr per share tender offer for Purolator Courier corp to midnight EST April six from midnight April one. E.F. Hutton lbo inc said its wholly owned PC Acquisition Inc subsidiary, which is the entity making the offer, extended both expiration date and the withdrawal rights period for its pending tender for 6.3 mln shares or 83 pct of Purolator common. Hutton's offer was topped today by a 40 dlr per share bid for 83 pct of the stock from Emery Air Frieght Corp <EAF.> Both offers would pay shareholders a package of securities for the balance of their shares, valued at the respective tender offer prices. Hutton said as of the end of the day yesterday, about 880,000 shares of Purolator common stock repesenting 11.5 pct of outstanding shares had been validly tendered and not withdrawn. Manhattan supreme court justice Lewis Grossman today adjourned until Monday a hearing on a stockholder suit seeking to block the Hutton LBO transaction. The judge told attorneys he needed time to hear other cases. Plaintiffs cited their belief that a superior offer would be forthcoming, however one company mentioned in an affadavit, Interlink Express plc, denied that it was interested. Yesterday, Frank Hoenemeyer, a retired vice chairman of Prudential Insurance Co and currently a Purolator board member, said an initial offer from Hutton was rejected by the board of directors February third. Hoenemeyer testified that by the next meeting of the board, February 17, Hutton submitted a revised proposal which was accepted. He also testified a committee of directors had hired Goldman Sachs and Co to consider alternatives to the Hutton offer and also to consider a discussion of possible mergers with other companies including Emery and Federal Express Corp <FDX>.  
AUSIMONT COMPO <AUS> SELLS UNIT. Ausimont Compo NV said it has sold the assets of its Equipment and Machinery Division for about six mln dlrs to an investment group including the unit's management, resulting in a modest pretax gain that will be included in first quarter results. The unit had sales of five mln dlrs in 1986.  
ATLANTIC RESEARCH <ATRC> COMPLETES ACQUISITION. Atlantic Research corp said it has completed the acquisition of professional services firm ORI Group for 1,414,313 common shares on a pooling of interests basis.  
PEABODY HOLDING COMPLETES ACQUISITION. <Peabody Holding Co Inc> said it has completed its acquisition of substantially all Eastern Gas and Fuel Associate's <EFU> coal properties for 15.01 pct of Peabody Holding's stock. Peabody said the purchase includes seven underground mines and seven coal preparation plants currently operated by Eastern, as well as coal properties being mined by several contractors in West Virginia. The acquisition also involves about 800 mln tons of coal reserves, mostly in West Va., and includes Eastern's coal reserves and inactive Powderhorn operations near Palisade, Colo, Peabody said. Peabody added that it expects to announce within the next week how it will staff and operate the properties and offices it has acquired from Eastern.  
CHIRAC SEES QUICK DECISION ON CGCT. French Prime Minister Jacques Chirac told U.S. congressmen France would announce a decision in two to three weeks on which group is to control its second largest communications firm, Compagnie Generale de Construction Telphoniques, French sources said. They said Chirac promised that France's decision would be based on financial, economic and technical criteria, and not on political grounds. U.S. and German companies are the leading contenders to take control of CGCT. The Reagan administration has warned France and Germany that it may retaliate if control of the company is awarded on political grounds. Jacques Delors, President of the European Community's Executive Commission, called last month for control to go to West Germany's Siemens AG in order to strengthen European industry. The other leading contender is a consortium of American Telephone and Telegraph Co <T> with Philips NV of the Netherlands. Chirac said France would make public its reasons for awarding control, the sources said. He was asked about the company's fate on two occasions, in meetings with leaders of the Senate and House of Representatives.  
ITEL <ITEL> BUYS CASTLE/COOKE <CKE> UNIT ASSETS. Itel Corp said it has completed the previously-announced acquisition of the container fleet and related assets of Castle and Cooke Inc's Flexi-Van Leasing Inc subsidiary for about 130 mln dlrs in cash and marketable securities, 30 mln dlrs in notes, three mln common shares and the assumption of liabilities. The company said it has obtained 150 mln dlrs in financing from a bank group for the deal, and the common shares are subject to a 10-year restriction on their sale and voting.  
DYNALECTRON <DYN> BUYS AVIATION FACILITY. Dynalectron Corp said it purchased certain assets of Standard Aero Inc including leasehold rights to its aircraft modification and maintenance facility in Phoenix, Ariz. Terms were not released. The facility consists of 285,000 square feet of hangar and shop space. Dynalectron will operate the plan as Dynair Tech Inc and is offering continued employment to about 460 former standard Aero employees.  
TALKING POINT/PUROLATOR COURIER <PCC>. Emery Air Freight Corp topped a leveraged buyout offer for Purolator Courier Corp by about 40 mln dlrs, but Wall Street is reacting as though another offer may surface. Purolator's stock climbed 5-3/8 today, to 40-1/8, 1/4 over Emery's 40 dlr per share offer. Emery topped a 35 dlr per share or 268 mln dlr offer from E.F. Hutton LBO Inc. Some analysts said the latest, 306 mln dlr offer for Purolator exceeded their expectations. Several analysts previously had said they saw takeover values for the package delivery company in the 35 dlr per share range. At least one, however, estimated the company could be taken over in a range of 38 to 42 dlrs per share. Analysts today would not venture to say whether another offer could be made, but some arbitragers still held to the belief that the bidding could go higher. "They have no choice to seek out the best possible offer. Emery has shown the courage to go forth," said one arbitrager, who speculated other courier companies may also emerge as bidders. "It makes sense," said James Parker of Robinson Humphrey. But "It won't make out as well as they think. They won't get a 100 pct of the synergies." Analysts said the acquisition could cost Emery earnings in the short term, but long term, after eliminating redundancies and selling other Purolator assets, it should boost Emery's profitability. Parker said a combined Purolator and Emery would rival United Parcel Service as the second largest U.S. package delivery company after Federal Express Corp <FDX>, which has 47 pct of the market. Parker speculated that the combined Emery-Purolator would have about 24 pct of the six to seven billion dlr delivery business. "This will make Emery a bigger factor in the light weight (delivery) business, but it will not make them a power house," said Douglas Arthur of Kidder, Peabody and Co. Purolator today declined comment on the Emery offer, and its chairman Nicholas Brady did not return a phone call. E.F.Hutton LBO also declined comment on the Emery offer, but said it extended the expiration and withdrawal period on its offer to April six at midnight from today at midnight EST. One analyst speculated the extension makes it more likely Hutton will attempt another offer. However, he was skeptical a company outside the package delivery industry would want to outbid 40 dlrs per share because it would not have the same synergies as a courier company. Since Purolator agreed in late February to a buyout by some of its management and the E.F. Hutton Group <EFH> subsidiary, speculation has arisen that more bidding was to come. The buyout was surrounded by controversy since a Purolator board member, Doresy Gardner resigned in March. Gardner said he believed a better offer could be made by another entity. A spokesman for Gardner today said the former director had no contact with Emery, nor did he have any other buyers lined up for Purolator. Purolator's deal with Hutton was also called into question by a shareholder suit filed earlier this week, which attempted to stop the tender offer to allow another bidder to come forth. Hearings in a New York state court were delayed until Monday. Arbitragers had said they believed the Hutton offer could be bettered because the Wall Street firm was not planning to keep its cash tied up in Purolator. Hutton is providing a 279 mln dlr "bridge" loan that would later be replaced with other debt. Hutton would maintain a majority interest in Purolator. Hutton sources have said the firm was in fact facing risk n its investment since it did not know when it could reclaim its 279 mln dlr loan. Emery last year lost 5.4 mln dlrs on revenues of 887.5 mln dlrs. Purolator lost 57.6 mln dlrs on 841.4 mln dlrs in revenues.  
WALL STREET STOCKS/POLAROID <PRD>. Rumors that New York investor Asher Edelman has acquired a stake in Polaroid Corp and optimism about tomorrow's status hearing on the patent infringement suit pending with Eastman Kodak Co <EK> sent Polaroid's stock higher, traders said. Polaroid rose 1-1/8 to 74-1/2. "Speculation that Edelman was going to take a stake in Polaroid was kicking around a few months ago, and resurfaced today," one trader said. Edelman had no comment on the rumors. A spokesman for Polaroid said the company had not been contacted by Edelman and no filing had been made with the Securities and Exchange Commission about a stake in the company. "There is some hope among investors that there will some progress in the status hearing tomorrow on the patent infringement suit with Kodak," analyst Michael Ellmann of Wertheim and Co said. Traders said it is conceivable that a trial date could be set or some progress made on an out-of-court settlement. The suit, filed by Polaroid in April 1976, charges that Kodak infringed upon Polaroid's instant camera patent. In October 1985, the court barred Kodak from selling cameras or film that infringe upon the patent, the Polaroid spokesman said. Ellmann said he feels it is highly unlikely that any progress will be made in tomorrow's hearing. Ellmann said the stock may have also gotten a boost today from some optimism concerning new products the company is currently working on. "Polaroid's announcement that a particularly senior company executive had been chosen to work on a major unidentified new product spurred some speculation about their products," he said. "I am speculating that the new product could be an electronic still camera," referring to a camera that records its images on magnetic disks as opposed to conventional film. Ellmann said the stock may have also gotten a boost today from some optimism concerning new products the company is currently working on. "Polaroid's announcement that a particularly senior company executive had been chosen to work on a major unidentified new product spurred some speculation about their products," he said. "I am speculating that the new product could be an electronic still camera," referring to a camera that records its images on magnetic disks as opposed to conventional film.  
ITEL <ITEL> COMPLETES FLEXI-VAN ACQUISITION. Itel Corp said it completed the previously announced purchase of the container fleet and certain related assets of Flexi-Van Leasing Inc for about 130 mln dlrs cash and marketable securities, 30 mln dlrs in notes, three mln shares of newly issued Itel common and assumption of certain liabilities. The company said it obtained financing from a syndicate of major banks for 150 mln dlrs.  
WALL STREET STOCKS/LORAL CORP <LOR>. Loral Corp climbed 3-3/4 to 48-3/4 amid rumors the company might be a takeover target of General Electric Co <GE>. However, analysts said they were skeptical. "Jack Welch doesn't want any more exposure to defense markets," said one analyst who heard the rumors but doubted their accuracy. The reference was to GE's chairman. The analyst, who requested anonymity, said, "I wouldn't believe this one unless there's a deal on the table." Loral Corp officials were not immediately available for comment.  
STRYKER <STRY> ACQUIRES HEXCEL <HXL> UNIT. Stryker Corp said it acquired Hexcel Medical Corp, a wholly owned subsidiary of Hexcel Corp. The terms of the transaction were not disclosed. The sale completes Hexcel's plan to sell all its medical products businesses, Hexcel said.  
OLD STONE <OSTN> COMPLETES ACQUISITION. Old Stone Corp said it completed the previously announced acquisition of First Federal Savings Bank of North Carolina, a Shelby, N.C., savings bank, for common stock. The final purchase price, expected to be between seven mln and 7.5 mln dlrs, will be based on an exchange of common stock valued at 1.5 times the book value of First Federal as of the March 31 closing date, the company said. At February  28, First Federal had 129 mln dlrs in assets and 120 mln dlrs in deposits. Old Stone is a Rhode Island-based financial services company with assets of 3.9 billion dlrs.  
MOORE MEDICAL CORP <MMD> TO MAKE ACQUISITION. Moore Medical Corp said it plans to acquire privately-held Penta Products, a wholesale distributor of generic durgs, for undisclosed terms.  
UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM. Upland Minerals and Chemicals Corp said it agreed to acquire Consolidated Brazilian Mines International Inc, a public company with one mln acres of diamond and gold properties in Brazil. Terms were not disclosed. Consolidated owns 42 mining concessions in three regions of eastern and northern Brazil -- Gammara, Santo Antonio and Diamazon, the company said. Upland also said the previously announced acquisition of Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining concern, will produce revenues of 9.6 mln dlrs a year for the next 25 years. New York-based Upland is traded over-the-counter.  
INSPEECH <INSP> BUYS NORMA BORK, BORK MEDICAL. Inspeech Inc said it acquired Norma Bork Associates Inc and Bork Medical Services Inc for undisclosed terms. These firms, with combined revenues of about one mln dlrs, are providers of speech pathology, physical therapy and occupational therapy services.  
UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM. Upland Minerals and Chemicals Corp said it agreed to acquire Consolidated Brazilian Mines International Inc, a public company with one mln acres of diamond and gold properties in Brazil. Terms were not disclosed. Consolidated owns 42 mining concessions in three regions of eastern and northern Brazil -- Gammara, Santo Antonio and Diamazon, the company said. Upland also said the previously announced acquisition of Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining concern, will produce revenues of 9.6 mln dlrs a year for the next 25 years.  
<CRIME CONTROL> ASSETS TO BE SOLD TO HAWLEY. Crime Control Inc said it reached a definitive agreement under which a subsidiary of Hawley Group Ltd will buy assets and assume certain liabilities of Crime Control for 51.3 mln dlrs. Of this amount, it said about 47 mln dlrs would be available for distribution to the company's banks, debenture holders and shareholders. The balance would be used to pay various state taxes and other expenses relating to the transaction, and to establish reserves to provide for certain unassumed obligations of the company. Crime Control said it would use proceeds to pay its bank lenders approximately 28.6 mln dlrs, representing about 87 pct of the principal amount of all its indebtedness to bank lenders. It also said it would propose to acquire all of its 20 mln dlrs worth of outstanding 10 pct convertible subordinated debentures for an aggregate of approximately 15.4 mln dlrs and propose liquidation of the company with shareholders receiving an estimated 54 cts a share. As reported earlier, Crime Control is in default on approximately 33 mln dlrs of bank debt and in default under the indenture governing its convertible subordinated debentures. On January 19, 1987, Crime Control, which installs, services and monitors electronic surveillance systems, said it retained Rothschild Inc to arrange for the sale of the company.  
CAMPEAU AND EDWARD DEBARTOLO COMPLETE PURCHASE. <Campeau Corp> and the <Edward J. DeBartolo Corp> have closed on their previously-announced purchase of five of the regional shopping centers of Allied Stores Corp. Campeau said it and the DeBartolo Association will each hold a 50 pct ownership interest in the shopping centers. Campeau separately announced that, as required by a bank agreement, it has contributed an additional 50 mln dlrs of capital to Allied. Campeau acquired Allied Stores Corp earlier this year, the company said.  
STANDARD OIL <SRD> COMMITTEE TRIED TO DELAY BID. A committee of independent directors of the Standard Oil Co unsuccessfully sought a delay in a tender offer for Standard shares by British Petroleum Co plc, according to offering documents. BP's offering document for its 70 dlr per share offer describes discussions with Douglas Danforth, who chairs a special committee of independent directors responsible for monitoring relations with BP. BP has been owner of a 55 pct stake in Standard for several years. According to the document, the committee's counsel said it needed one to two months to evaluate the offering price. Danforth, who is chairman of the Westinghouse Electric Co <WX>, first learned of BP's interest in acquiring the rest of Standard in a telephone call March five from Sir Peter Walters, chairman of BP. At a meeting march nine, Danforth informed BP that the special committee had hired First Boston Corp <FBC> as its financial adviser and also retained independent counsel. Danforth's concerns that the special committee did not have sufficient time were expressed to Walters in a telephone conversation and reiterated in a letter from counsel on Monday of this week.  
CENTURY BUSINESS CREDIT <CTY> GETS OFFER. Century Business Credit Corp said it received an offer from Stanley Tananbaum, chairman and chief executive officer, to take the company private in a transaction giveing shareholders 24.40 dlrs per share in cash. There were 603,106 shares outstanding as of December 31. The independent directors said they will engage an expert to evaluate the fairness of the offer.  
EMERY <EAF> PLANS PUROLATOR <PCC> ASSET SALES. Emery Air Frieght Corp, which has launched a 40 dlr a share tender offer for 83 pct of Purolator Courier Corp, said it would sell some Purolator assets to help pay the estimated 265 mln dlr cost of the stock purchase deal. In a filing with the Securities and Exchange Commission, Emery said it would sell or lease Purolator's air hub in Indianapolis, Ind., which is currently under construction, and would divest Purolator's Stant Inc subsidiary. No indications of interest for the assets have been received so far, Emery said. Emery said it would operate Purolator as a subsidiary if it succeeded in the takever, but would integrate its air hub. It said it plans to finance its stock purchases with borrowings from Chemical Bank, Morgan Guaranty Trust Co of New York, Bankers Trust Co and Salomon Brothers Holding Co Inc, the parent of Salmon Brothers Inc, Emery's financial advisor. Emery said it already has a commitment letter from its banks for up to 129.9 mln dlrs for the stock purchases. An unspecified amount of internally generated funds would also be used for the stock purchases, it added.  
IC INDUSTRIES<ICX> UNIT TO SELL OFF MORE TRACK. Illinois Central Gulf Railroad, a subsidiary of IC Industries Inc, said it will complete the sale to the Chicago, Missouri and Western Railway of its 631-mile line from Joliet, Ill., to St. Louis by April 30. The Chicago, Missouri is a wholly owned subsidiary of the Venango River Corp, a transportation holding company. It said the purchase price of the line is 81 mln dlrs. The Chicago, Missouri will employ 625 workers and start operation immediately upon closing of the transaction.  
GOULD <GLD> COMPLETES SALE OF DIVISION. Gould Inc said it has completed the sale of its Systems and Simulations Division to the unit's management for an undisclosed price. Gould said the move is part of its plan to divest its defense systems businesses and focus on its computer and electronics sectors. Gould added that it accounted for the division as a discontinued operation.  
FRENCH FIRM HAS FIVE PCT OF CALIF. WATER <CWTR>. Compagnie Generale Des Eaux <EAUG.PA>, a French water, waste treatment and disposal, heating, ventilation and air conditioning concern said it has a 5.0 pct stake in California Water Service Co. In a filing with the Securities and Exchange Commission, Compagnie Generale said it bought its 139,200 California Water shares for a total of 7.0 mln dlrs for investment purposes. While it said it might acquire more shares in the company, it said it has no plans to seek control of it.  
DEAK BUYS JOHNSON MATTHEY COMMODITIES. Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International, said the purchase will expand Deak's operations in precious metals and wholesale non-ferrous metals trading.  
CROWN RESOURCES <CRRS> PLANS ENERGY UNIT SALE. Crown Resources Corp said it plans to sell its Oklahoma-based oil and gas unit as part of its strategy to focus on developing precious metals properties. The company said it bought the Wyona Water Flood Oil and Gas unit in 1984 for 650,000 dlrs. Crown said the Wyona field is fully developed with 28 producing wells. Current oil production is 80 barrels a day, it said, adding that no gas was produced for sale in 1986.  
M.D.C. HOLDINGS <MDC> SELLS ENERGY UNIT. M.D.C. Holdings Inc said it sold substantially all the assets of its oil and gas unit, Mizel Petro Resources Inc, and affiliated partnerships, for 38 mln dlrs in cash to <Parker and Parsley Petroleum Co>, Midland, Texas. The company said that, subject to certain post-closing adjustments, it expects to post a small profit on the sale.  
FIDELCOR <FICR> UNIT ACQUIRES LAZERE FINANCIAL. Fidelcor Inc's Fidelcor Business Credit Corp subsidiary said it reached a definitive agreement to acquire a substantial portion of the Bank of New England Corp's <BKNE> Lazere Financial Corp's assets. Terms of the acquisition were not disclosed. The acquisition is subject to approval of the Federal Reserve Board. Fidelcor said it would acquire most of Lazere's loan portfolio and other assets, including its Miami office. It said it plans to hire the majority of Lazere's 100 employees.  
INVESTMENT ADVISORS HAVE 10 PCT OF KILLEARN<KPI>. Two executives of a Memphis, Tenn., investment advisory firm told the Securities and Exchange Commission they have acquired 132,000 shares of Killearn Properties Inc, or 10.4 pct of the total outstanding. The executives, O. Mason Hawkins and William Reid, who work for Southeastern Asset Management Inc, said they bought their Killearn stock with personal funds as an investment. While they said they might increase their stake Killearn Properties, they said they have no plans to seek control of it.  
AMERICAN BARRICK <ABX> SELLS COAL ASSETS. American Barrick Resources Corp said it sold two coal supply agreements and certain mining equipment, representing substantially all of the assets of its two Ohio coal mines, to Peabody Coal Co, of Kentucky. Terms were not disclosed. Proceeds from the sale combined with the sale of the company's remaining coal assets should result in full recovery of its investments in the operations, the company said without further elaborating. The sale will complete the planned disposition by American Barrick of all its non-gold assets, it said.  
NOVAMIN BOARD TO RECOMMEND BREAKWATER <BWRLF> BID. <Novamin Inc> said its board will recommend to shareholders the takeover offer made by Breakwater Resources Ltd. Breakwater is offering to exchange one Breakwater share for each two shares of Novamin, the company said. Breakwater will issue about 3.7 mln shares for all Novamin shares presently issued and outstanding. Additional shraes of Breakwater will be issued if warrants and options of Novamin are exercised.  
NEWMONT MINING CORP REDUCES STAKE IN PEABODY. Newmont Mining Corp said it completed the previously announced reduction of its share in <Peabody Holding Co Inc> to 49.97 pct from 61.47 pct. Newmont realized 116.8 mln dlrs in the transaction. For 1986, Newmont reported net income of 74.2 mln dlrs. Peabody, the largest coal producer in the U.S., had net income of 100.8 mln dlrs on sales of 1.4 billion dlrs in 1986. Newmont doubled its ownership in Peabody in January by purchasing 30.74 pct interest held by the Williams Cos for 320 mln dlrs. The reduction resulted from completion of an earlier announced agreement by Peabody to sell a 15.01 pct interest in the company to Eastern Gas and Fuel Associates in exchange for all the coal properties owned by Eastern.  
LIFETIME <LFT> EXCHANGE OFFER ACCEPTED. LIfetime Corp said Retirement Housing Corp has accepted its previously announced acquisition offer. Retirement will operate autonomously as a separate subsidiary.  
GALVESTON TO AQUIRE MINE PROPERTY INTERESTS. <Galveston Resources Ltd> said it agreed in principle for an option to earn up to a 50 pct interest from <Hemlo Gold Mines Inc> in certain mining properties known as the Interlake Property, subject to regulatory approvals. Galveston said it will earn up to a 50 pct interest by spending a minimum of one mln dlrs in exploration and development work by December 31, 1989. It expects work will commence shortly and continue during the 1987 exploration season. Galveston also said it granted Hemlo Gold options to acquire up to two mln Galveston shares. It said the options can be exercised at 10 dlrs a share up to December 31, 1987, then at 12.50 dlrs a share until December 31, 1988, and then at 15 dlrs a share until December 31, 1989. Separately, Galveston said it agreed in principle with <Noranda Inc> unit Noranda Explorations Ltd for an option to earn up to a 50 pct interest in a major mineral property located at the Baie Verte Peninsula, Newfoundland. Galveston can earn a 50 pct interest by spending six mln dlrs in exploration and development work on the property by December 31, 1989. The company also said it granted Noranda an option to purchase two mln Galveston shares. The options can be exercised at 10 dlrs a share until December 31, 1987, then at 12.50 dlrs a share until December 31, 1988, and then at 15 dlrs a share until December 31, 1989.  
DEUTSCHE AGREES FULL TAKEOVER OF FORMER EURASBANK. Deutsche Bank AG <DBKG.F> has agreed to take over the outstanding 25 pct in <Deutsche Bank (Asia) AG>, the former <European Asian Bank AG>, from Creditanstalt-Bankverein <CABV.VI>, Deutsche management board joint spokesman Alfred Herrhausen told a news conference. Euras broke even in 1986 and required no funding from Deutsche, he said. He gave no details of the deal with Creditanstalt. Press reports that Deutsche was planning a takeover of Lloyds Bank plc <LLOY.L> were without foundation, he said. Herrhausen said Deutsche had taken part in the recent capital increase of <Morgan Grenfell Group plc>, but had no plans to raise its 4.4 pct share in Morgan Grenfell. <Banca d'America e d'Italia SpA>, in which 98.3 pct was acquired from Bankamerica Corp <BAC.N> late last year, would be consolidated this year, and contribute to further expansion of Deutsche's business, management board joint spokesman F. Wilhelm Christians said. Following a ruling earlier this year from the Federal High Court, Deutsche had included its non-bank holdings in the balance sheet section "participations," Christians said. But Christians said the bank still regarded shares in these non-bank companies as an investment rather than an active participation. Parent bank total participations rose to 6.45 billion marks in 1986 from a comparable 4.57 billion in 1985 including a rise to 3.79 billion from 2.34 billion in bank participations. Herrhausen said the grouping of holdings in the balance sheet in this was was not a first step to floating them off in a separate holding company.  
C AND W OFFERED ROLE IN NEW JAPAN TELECOM COMPANY. A Japanese businessman announced plans for a new telecommunications firm in which Britain's Cable and Wireless Plc would be a core company. However, the plan, unveiled by senior Federation of Economic Organizations official Fumio Watanabe, does not specify what stake Cable and Wireless would have. "The share holdings of the core companies should be equal," Watanabe said in a statement. "The actual percentage of shareholdings should be agreed by the core companies." He said the eight core companies will provide directors for the firm. "The new company shall immediately set to work on the feasibility study of constructing a new cable for itself," Watanabe said. Watanabe has acted as mediator between two rival groups, one of which included C and W, seeking to compete against <Kokusai Denshin Denwa Co Ltd>, which now monopolizes Japan's overseas telephone business. The Post and Telecommunications Ministry has said it wants only one competitor to KDD and has backed Watanabe's efforts. A British source, who declined to be identified further, said the proposals could open the door to further talks between C and W <CAWL.L> and the other firms involved. C and W had earlier rejected a reported proposal which would have given it a five pct share in the new telecommunications firm, compared to the less than three pct stake Watanabe originally proposed. C and W has a 20 pct stake in one of the two firms Watanabe has proposed should merge. The British source said the decision not to specify the exact shareholdings of the core companies could leave the door open for further discussion. "It's probably a sensible approach on their part," the British source told reuters. C and W has also been pushing hard for permission to lay a new cable between Japan and the U.S. The proposed merger has sparked an international row, with British government sources threatening retaliatory action against Japan for what they see as discriminatory practices against foreign firms. The sources said last Friday that one option for Britain would be to revoke licenses of Japanese banks and securities companies operating in London. The U.S. Has also attacked the original merger plans, saying that both rival consortia should be licensed. Asked about participation by other U.S. And European firms, Watanabe said, "They will not be core companies but if they wish they could participate." Under the Japanese law, total foreign participation would be limited to one-third. "It might be wise for C and W to join the new firm which has the support of many influential backers and work within this for the realization of their ideas," Watanabe told reporters. The other core firms are Mitsubishi Corp <MITT.T>, Mitsui and Co <MITS.T>, Sumitomo Corp <SUMT.T>, Matsushita Electric Industrial Co <MC.T>, Toyota Motor Corp <TOYO.T>, C Itoh and Co <CITT.T>, and <Pacific Telesis International Inc>. Watanabe said that his latest proposal represented his final effort. If it fails to satisfy the British government, it will be up to the Japanese government to explain its position, he said.  
GUINNESS TO SELL RETAIL INTERESTS. Guinness Plc <GUIN.L> said that as part of a new strategy for the company it will be selling its retail interests to concentrate resources on developing its international beverage businesses. Among the firms to be sold are Martin's and Gordon Drummond pharmacies, the 7-Eleven convenience stores, speciality U.S. Food importer Richter Brothers and the health products company Nature's Best/DSL. Guinness said in a statement that the company's strength was in its well known beer and spirits brands. Several had good brand development potential, including Gleneagles, Champneys, Cranks, Hediard and and Guinness publications. Guinness shares were trading at 323p after the announcement after closing yesterday at 317p.  
COMPROMISE CITED ON SAN MIGUEL SHARES. <San Miguel Corp>, SMC, and <United Coconut Planters Bank>, UCPB, have reached a compromise on a disputed block of 38.1 mln shares of SMC, the head of a government panel that controls the sequestered shares said. Ramon Diaz, Chairman of the Presidential Commission on Good Government (PCGG) told Reuters SMC had offered a price of 126 pesos per share for the block, held in trust by the UCPB. "It looks good," Diaz said. But he added several issues, including the identity of the ultimate buyers of the shares, had to be resolved before the PCGG gave its approval to the sale. The PCGG's sequestration last year of 33 mln shares aborted SMC's bid to buy them back from 14 trading companies in the UCPB group. The commission said it suspected the shares were actually controlled by Eduardo Cojuangco, an associate of former President Ferdinand Marcos. Cojuango, who headed the boards of both SMC and UCPB when he fled last year after Marcos was toppled, personally owned 24 mln shares in SMC. His holdings are also under sequestration. "The shares that SMC now proposes to buy from the UCPB are owned by 1.4 mln coconut farmers," Diaz said. "Naturally we do not want them to go back into the hands of Marcos cronies." PCGG sources said a compromise would end a row over a down payment of 500 mln pesos made by SMC's Hong Kong subsidiary Neptunia Corp Ltd in a bid to buy back the shares last year. The UCPB had said the 500 mln peso payment would be forfeited because SMC Chairman Andres Soriano III had failed to fulfil his commitment to buy back the shares at an originally negotiated price of 3.3 billion pesos. PCGG sources said SMC, the Philippines' largest food and beverage manufacturer, has agreed to sell 14 mln "B" class shares from the 38.1 mln shares to Australian brewer Alan Bond at a price of 150 pesos per share. The PCGG sources said of the proposed 4.79 billion peso transaction, 1.6 billion pesos would be offset against the 500 mln peso down payment, the 500 mln pesos worth of preferred shares in UCPB held by SMC, 210 mln pesos in uncollected dividends on the UCPB shares and 400 mln pesos advanced to UCPB-controlled trading companies. The UCPB rejected an original offer of 100 pesos per share made by SMC for 33 mln shares, which grew to 38 mln after a 15 pct stock dividend declared in June last year. A spokesman for SMC said the company's 15-member board met today to discuss the proposed compromise. The spokesman declined comment on the outcome of the board meeting, saying the dispute was under arbitration. President Corazon Aquino last month asked SMC and UCPB to set up a three-man arbitration panel to resolve the ownership issue. The panel is due to submit its report by April 15. Eduardo de Los Angeles, a government nominee in the SMC board, filed a formal complaint before the Securities and Exchange Commission last week, accusing Soriano and eight other directors of violating "fiduciary duty." De Los Angeles was said to have opposed a decision by SMC's board last December to assume the 500 mln peso Neptunia loan.  
RANK MAKES INCREASED AVANA OFFER FINAL. Ranks Hovis McDougall Plc <RHML.L> said it was making an increased and final offer for the Avana Group Plc <AVNA.L>. The company already holds about 22.9 pct or 7.1 mln Avana ordinary shares. It said in a statement the terms of the offer will be 13 new Rank Hovis shares for every five Avana ordinary shares, valuing each Avana share at 829p. Avana shareholders will be entitled to receive and retain the net interim dividend of 5.25p per Avana share for the year ending 28 March 1987. Accepting Avana shareholders will also be entitled to receive Ranks Hovis's forecast net interim dividend of 2.65p for the financial year ending 5 September 1987. Ranks Hovis said that full acceptance of the increased offer would result in the issue of a maximum of 72.3 mln new Ranks Hovis shares or about 20 pct of the enlarged issued ordinary share capital of the company. The latest offer will lapse on 17 April. Ordinary shareholders in Avana who accept the increased offer will have the opportunity to elect for cash for all or part of their holdings on the basis of 800p cash for each Avana share. Ranks Hovis said the cash required for the cash alternative would be met by one of several methods. For the first 10 mln Avana shares received opting for the cash alternative, Ranks Hovis would make a cash payment from its own resources. For cash alternatives of more than 10 mln Avana shares, Morgan Grenfell, as agent for participants, will make a separate offer to purchase at 300p per share, net of expenses, up to 46.3 mln Ranks Hovis new shares to which such shareholders will be entitled under the increased offer. This is equivalent to 780p per Avana ordinary. In addition, Ranks Hovis will make a further cash payment of 20p per Avana ordinary. Avana shares traded at 800p after the announcement, 32p up from last night's close of 768p. REUTER  
CABLE UNIMPRESSED BY NEW JAPANESE TELECOMS OFFER. Cable and Wireless Plc <CAWL.L> said new proposals unveiled by Japan for it to become a core member of a merged telecommunications firm to compete for telecommunications contracts did not remove the group's objections. The suggestions by Federation of Economic Organisations official Fumio Watanabe was a formal announcement of proposals made earlier this week and reported in the Japanese press. Cable has a 20 pct stake in one of the two groups trying to compete against Japan's <Kokusai Denshin Denwa Co Ltd> which monopolises Japan's overseas telephone business. But a Cable spokesman said it still believed a merger of the two consortia would be impracticable. "They are like oil and water," he said. The Japanese authorities want only one competitor and have proposed that the two consortia band together. The issue has been taken up by the British government as a test case on the openness of Japanese markets. Watanabe's latest proposals said that the eight core companies of the new group should have equal share holdings but added that they could work out the precise percentages amongst themselves. The reports earlier this week said that Cable would be offered a five pct stake, up from an originally proposed three pct. Despite the apparent differences in stakes offered, the Cable spokesman said the two offers appeared to be essentially the same. Cable shares at 1100 GMT were quoted nine pence firmer at 374p.  
DECISION EXPECTED ON U.K ROYAL ORDNANCE SALE. U.K. Defence secretary George Younger is expected to announce the government's decision on the sale of state-owned arms manufacturer <Royal Ordnance> today, parliamentary sources said. The government originally intended to float the munitions and explosives concern on the stock market, but last July said a private sale was a more appropriate way to dispose of the firm. The bidders for the company were British Aerospace Plc <BAEL.L> and engineering group GKN Plc <GKN.L>. Royal Ordnance sold its Leeds tank factory last summer to Vickers Plc <VICK.L>. Defence electronics manufacturer Ferranti Plc <FNTI.L> and shipping and property group Trafalgar House Plc <THSL.L> both pulled out of the bidding shortly before last month's deadline. Royal Ordnance made pre-tax profits of 26 mln stg on sales of 487 mln stg in calendar 1985, its first full year of commercial operation. The company has assets of around 240 mln stg and employs 17,000 at 15 sites in Britain. Other state-held companies earmarked for privatisation this year include engine maker <Rolls Royce Plc> and the <British Airports Authorities Plc>.  
TOSHIBA REGRETS LINK WITH U.K. ACCESS ISSUE. Toshiba Corp <TSBA.T> said it regrets its plan to enter the U.K. Business facsimile and telephone market may be caught up in a diplomatic row over the position of Cable and Wireless Plc's <CAWL.L> in the Japanese market. Britain is considering how to retaliate against Japan's attempt to prevent Cable and Wireless from taking a major position in a Japanese international telecommunications venture. "As a matter of timing it is regrettable that this has been linked with the question of market access in Japan," a Toshiba spokesman told Reuters. <Toshiba Information Systems (U.K.) Ltd>, a Toshiba subsidiary, said yesterday it planned to enter the U.K. Market under the Toshiba own brand name and had applied for government approval to do so. Toshiba has supplied equipment to U.K. Manufacturers for sale under their brand names since last year. The Toshiba spokesman said the sale of such equipment was not comparable to Cable and Wireless' efforts to take a stake in the new Japanese telecommunications firm. "They are matters of a different category," he said.  
NEWS CORP <NWS> STARTS HARPER/ROW <HPR> BID. News Corp Ltd of Australia said it has started its previously announced tender offer for all shares of Harper and Row Publishers Inc at 65 dlrs per share. In a newspaper advertisement, the company said the offer is conditioned on received of at least 51 pct of Harper and Row's shares.  The offering and withdrawal rights expire April 29 unless extended. A merger at the tender price is to follow the offer, which has been approved by the Harper and Row board.  Harper and Row has granted NEw Corp an option to buy up to 800,000 new shares or a 15.4 pct interest at 65 dlrs each. News Corp said if the merger agreement were terminated under certain circumstances, News would be entitled to a 16 mln dlr cash payment. Last month, Theodore Cross offered to acquire Harper and Row for 34 dlrs per share but was soon outbid by Harcourt Brace Jovanovich Inc, which offered 50 dlrs per share.  Late in the month, Harper and Row said its board had received expressions of interest from a number of domestic and foreign companies.  
<ALOHA INC> BUYOUT COMPLETED. Aloha Inc said its leveraged buyout by AQ Corp, which acquired 91 pct of Aloha common and 82 pct of Aloha preferred in a tender offer that concluded December 26, has been completed for 28.50 dlrs per common or preferred share. AQ is controlled by Aloha chairman Hung Wo Ching, vice chairman Sheridan C.F. Ing and president A. Maurice Myers.  
CPC INTERNATIONAL <CPC> SELLS SOUTH AFRICAN UNIT. CPC International Inc said it has completed the sale of its South African subsidiary Robertsons Pty Ltd to a consortium of European and South African investors for an undisclosed amount in excess of book value due to the increasing difficulty of operating there. It said the operation accounted for less than two pct of worldwide sales of 4.5 billion dlrs in 1986. The company said small royalties expected to result from use of CPC trademarks by the new owners will be utilized for social programs in south Africa."  It said no significant impact on earnings is expected from the sale.  
AMERICAN BARRICK <ABX> SELLS OHIO ASSETS. American Barrick Resources Corp said it sold two coal supply agreements and substantially all assets at its two coal mines in Ohio to <Peabody Coal Co> of Henderson, Kentucky, for an undisclosed price. The company said proceeds from this sale, together with the sale of the remaining coal assets, should allow it to fully recover its investment in the operations. It said the transactions will complete its previously announced plan to sell all non-gold assets.  
FIRST FEDERAL FORT MYERS <FFMY> TO MAKE PURCHASE. First Federal Savings and Loan Association of Fort Myers said its board has executed a letter of intent to acquire First Presidential Savings and Loan Association of Sarasota, Fla., for 8,500,000 dlrs in cash. The company said a definitive agreement is expected to be executed by May 15 and the transaction is expected to be completed by year-end. The purchase price is subject to an increase on a dollar for dollar basis to the extent that the net worth of First Presidentail exceeds 4,100,000 dlrs at the time of closing, the company said.  
ELI LILLY AND CO PLANS TO SELL ITS ELIZABETH ARDEN SUBSIDIARY.  ELI LILLY AND CO PLANS TO SELL ITS ELIZABETH ARDEN SUBSIDIARY  
ELI LILLY <LLY> TO SELL ELIZABETH ARDEN UNIT. Eli Lilly and Co said its board decided to sell Elizabeth Arden Inc, a wholly owned subsidiary that manufactures and markets cosmetics and fine fragrance products. It said the business, which had sales of 67 mln dlrs when it was acquired in 1971, had sales last year of 398 mln dlrs, up 12 pct from 1985. It had operating profits of about 33 mln dlrs in 1986. Lilly said it retained Morgan Stanley and Co to help evaluate offers. Lilly said it expects to use the after-tax proceeds from the sale of its cosmetics business for general corporate purposes, including the repurchase from time to time of its common stock or warrants on the open market. In a statement, Lilly Chairman Richard Wood said "This strategic decision was reached on the basis of our belief that in the future the corporation's resources, including its research activities, should be focused on its other business which have a high technology, life sciences orientation."  
KEY CENTURION <KEYC> COMPLETES ACQUISITIONS. Key Centurion Bancshares Inc said it has completed the previously-announced acquisitions of Union Bancorp of West Virginia Inc and Wayne Bancorp Inc.  
CB AND T <CBTB> COMPLETES ACQUISITION. CB and T Bancshares Inc said it has completed the acquisition of First Community Bancshares Inc Of Tifton, Ga., which as assets of 62 mln dlrs.  
ZIMBABWE GOVERNMENT BUYS INTO ASTRA. The Zimbabwe government has bought 85 pct of the equity in <Astra Corporation> for 25.5 mln dlrs from Netherlands-based <Bommenede Houdstermaatschappij (Nederland BV)>, Astra announced. Astra owns five companies with interests in engineering, paint manufacture and the distribution of farm machinery and equipment, motor vehicles and earthmoving equipment. The company is now locally controlled with 80 pct of its equity owned by the government, 14 pct by the Dutch firm. A six pct stake was donated to the Astra Corporation Workers' Trust by the government and the Dutch company.  
JACOBS TAKES MAJORITY STAKE IN COTE D'OR. Jacobs Suchard AG said it acquired a "comfortable majority" interest in its takeover bid for Cote d'Or SA, Belgium's leading producer of chocolate. In a statement, Jacobs said it had acquired all the shares tendered by the time its offer expired on March 30. The offer, for 100 pct of Cote d'Or at 8,050 Belgian francs per ordinary share, was agreed with the Belgian firm's board. A Jacobs spokesman declined to specify the size of the majority stake and said Jacobs had not decided what it would do about acquiring the outstanding shares.  
MIM COMPLETES PART OF NORDDEUTSCHE AFFINERIE BUY. MIM Holdings Ltd <MIMA.S> said it has issued 23.33 mln shares to Preussag AG <PRSG.F> to complete the previously announced purchase of 20 pct of <Norddeutsche Affinerie AG> from Preussag. Terms of the acquisition of 10 pct of Norddeutsche Affinerie from Degussa AG <DGSG.F> are currently being resolved, MIM said in a statement. Norddeutsche Affinerie will then be owned 40 pct by Metallgesellschaft AG <METG.F> and 30 pct each by MIM and Degussa, but MIM said it and Metallgesellschaft are proposing a further arrangement to give them 35 pct each.  
SKANDIA INTERNATIONAL BUYS STAKE IN NEVI BALTIC. <Skandia International Holding AB>, the overseas offshoot of Swedish insurance group Forsakrings AB Skandia <SKDS.ST> said it was buying a 29.9 pct share in the London-quoted property and financial services company <Nevi Baltic Plc>. No financial details were given. Nevi Baltic, with a 1986 turnover of 20 mln stg and total assets of 70 mln stg, is controlled by Norwegian finance company <Nevi AS> which will retain a 30.1 pct stake in the British unit, Skandia said in a statement. The deal is subject to formal approval from the Swedish central bank, the statement added.  
HORIZ0N AGREES TO 94.8 MLN STG BID FROM BASS. Bass Plc <BASS.L> and <Horizon Travel Plc> said terms have been agreed for an offer worth around 94.8 mln stg for Horizon by Bass. The offer values each Horizon share at some 0.213 of a Bass ordinary share, or 190p. This is based on a price of 892p, the Bass share quotation at 1630 gmt on April 2. Horizon said its board and financial advisers consider the offer to be fair and reasonable and the board will unanimously recommend acceptance to its shareholders. Horizon shares jumped 23p to 188 after the announcement while Bass shares dipped 13p to 879. Bass has for some time regarded overseas holidays as an area for expansion and in pursuit of this objective, acquired a 25.6 pct holding in Horizon in 1985 when it set up the jointly owned hotel company. Both Bass and Horizon said that Bass's resources will enable Horizon's businesses to expand strongly this year. On March 30 Bass said it had agreed to sell its Pontins U.K. Holiday camps to a newly formed private company, Pontins Ltd, for some 57.5 mln stg.  
PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW. <Pioneer Sugar Mills Ltd> said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd <CSRA.S> on March 31 to be too low in view of the group*hK!UiIe and prospects. CSR's bid for the 68.26 pct of Pioneer's 99.80 mln issued shares it does not already hold values the entire grop_j9culd make an alternative share offer but has not yet announced terms. Pioneer recommended in a statement that shareholders retain their stock, pending the board's response once it receives full details of the CSR offer.  
ALTEX <AII> SETS ACQUISITION OF COMPUTER FIRMS. Altex Industries Inc said it has agreed in principle to buy 82 pct of two privately-held affiliated computer retail companies for an undisclosed amount. Altex said the Denver-based companies had revenues of over seven mln dlrs last year. They are Integrated Management Data Systems Inc, which sells accounting software systems to the oil and gas industry, and Integrated Management Systems Micro Distribution Division Inc, which distributes micro-computer products. Altex said it expects to close the transaction, which is subject to financing, in July.  
TALKING POINT/SANTA FE SOUTHERN <SFX>. Santa Fe Southern Pacific Corp may have more difficulty combining its two railroads than fending off a possible takeover by Henley Group <HENG>, which has accumulated almost a five pct stake in the real estate and railroad conglomerate, analysts said. Takeover speculation has surrounded Santa Fe since Henley disclosed its stake in the company earlier this week, but analysts and a Santa Fe official were skeptical a takeover is its intention. Analysts also said the company has strong defenses that would easily deter any suitor - one of those being its problems combining its two railroad properties, which hang in regulatory limbo. Richard Fischer of Merrill Lynch and Co Inc said that Santa Fe at December 31 had 580 mln dlrs in cash and cash equivalents, while its long-term debt to capital was just over 25 pct. "This gives them plenty of borrowing power," he said, which could be used against an unwanted suitor. Henley Group's Chairman Michael Dingman has said he wants to take major positions in undervalued natural resource companies. He also told Reuters in an interview he is seeking an acquisition of from two billion to eight billion dlrs. Santa Fe officials don't appear concerned that Henley might launch a takeover. "I would not characterize the atmosphere around here as one of concern," one Santa Fe executive said about Henley. "I think it's wrong to assume Dingman has formed a firm strategy with Santa Fe," said Mark Hassenberg, who covers Henley for DLJ Securities. Analysts say the potential of Santa Fe's land assets are likely to be realized slowly. They add that Santa Fe's efforts to merge its two railroads remain in regulatory limbo, sidetracking many of its strategic plans for the foreseeable future. These realities, they said, support the Henley Group's statement that its Santa Fe stake is only an investment. The more pressing problem facing Santa Fe is overcoming difficulties in merging its two railroads, the Atchison, Topeka and Santa Fe Railway Co and Southern Pacific Transportation Co. The merger would create the nation's second-longest railroad. Last July the Interstate Commerce Commission (ICC) denied the merger on anticompetitive grounds. The company since has granted trackage-sharing rights to four western railroads to meet the ICC's concerns and persuade it to reopen the hearings in its three-year-old struggle to merge the lines. "My guess is the commission will decide in three to six weeks whether to reopen hearings," Fischer said. "I believe they've made an effort to satisfy the ICC's objections," he said. "But in doing so they haven't pleased everyone. Before they had Burlington Northern on their side, now Burlington is opposed to the way trackage rights are set up." If the hearings are reopened, analysts predicted it will take six to nine months for everyone to have their say, and up to another year for the ICC to decide. Santa Fe is in the midst of a 50-mln-share stock buyback program begun in 1984. It has bought back 33.7 mln shares as of February 1, when it had 154.7 mln shares outstanding, a spokesman said. Among the shares repurchased were two stakes owned by Norfolk Southern, one of 3.4 mln shares bought in 1986 and another of 1.7 mln shares in 1985, one analyst said. James Voytko at Paine Webber believes Santa Fe could fight off the Henley Group with its cash and credit. Citing the share buybacks from Norfolk Southern, he said one of Santa Fe's options, if threatened, could be to buy the Henley stake. "It is indeed possible that Dingman sees this as a low-risk, opportunistic investment," Voytko said. "People who follow Santa Fe have given me values of 45 dlrs to 50 dlrs a share," said DLJ Securities' Hassenberg. "But I'm certain that in Dingman's mind, the company is worth more than that in breakup value."  
PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW. <Pioneer Sugar Mills Ltd> said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd <CSRA.S> on March 31 to be too low in view of the group*hK!UiIe and prospects. Pioneer recommended in a statement that shareholders retain their stock, pending the board's response once it receives full details of the CSR offer.  
GENERAL PARTNERS WILLING TO PAY 110 DLRS/SHARE FOR GENCORP.  GENERAL PARTNERS WILLING TO PAY 110 DLRS/SHARE FOR GENCORP  
CANRAD <CNRD> ACQUIRES MEASUREMENT SYSTEMS. Canrad Inc said it acquired the Measurement Systems Division of <Page-Wilson Corp> for an undisclosed amount of cash. Canrad said the acquisition is expected to increase its annual revenues by about 10 mln dlrs.  
PANTERA'S  <PANT> ACQUIRES 10 RESTAURANTS. Pantera's Corp said it closed on its agreement to acquire ten pizza restaurant locations in southeastern Colorado. It said the purchase price was 1,250,000 dlrs, which was paid by cash and stock.  
GENERAL PARTNERS TO RAISE BID FOR GENCORP <GY>. <General Partners> said it was prepared to raise its bid for GenCorp Inc to 110 dlrs cash per share from 100 dlrs per share. In a letter from General Partners to A. William Reynolds, chairman and chief executive officer of GenCorp, the company stated that if GenCorp could prove the company was worth more, General Partners would be willing to consider an even higher price. General Partners also left open the possibility of an alternative to an all-cash offer. General Partners told GenCorp if it believed shareholders would be better served by a smaller cash price with a security representing a continuing long-term interest in GenCorp's prospects, it would be willing to discuss an alternative. Specifically, General Partners said it was prepared to discuss an acquisition giving shareholders a continuing interest in Aerojet General, a valued business of GenCorp.  
R.R. DONNELLY <DNY> TO SELL CABLE SYSTEM. R.R. Donnelly and Sons Co said it reached an agreement with Adams-Russell Co Inc <AAR> to sell Adams its Rockford, Ill., cable system for an undisclosed price. R.R. Donnelly said it expects the deal to close in about 120 days, subject to regulatory approvals and other conditions. The cable system serves about 51,000 subscribers in the communities of Rockford, Loves Park, Machesney Park, Cherry Valley, Morristown and Winnebago County, Ill., R.R. Donnelly said.  
K MART <KM> SELLING KRESGE TO MCCRORY. K mart Corp said it agreed to sell most of the U.S. Kresge and Jupiter stores to McCrory Corp, a subsidiary of privately held Rapid American Corp. It said the agreement covers 76 stores in 21 states including inventory and fixtures. The price depends on the amount of the inventory that will be in the stores on the closing date. K mart said it will continue to operate the stores until early June, when McCrory will take over with no interruption of service. The newly acquired Kresge and Jupiter stores will be renamed McCrory 5 and 10. McCrory currently operates 1,250 stores in 38 states.  
KLEER-VU INDUSTRIES TO SELL COSMETICS UNIT. <Kleer-Vu Industries> said the company's board authorized the sale of its Neslemur Co, its cosmetic and toiletries company. The company said it is evaluating two separate proposals and will complete the sale within 10 days.  
MEMORY PROTECTION <MPDI> COMPLETES ACQUISITION. Memory Protection Devices Inc said it completed its acquisition of the assets and liabilities of Bogen, a division of <Lear/Siegler>, for 9,200,000 dlrs in cash. Under the newly-structured company, Memory said it expects to report consolidated sales of 18 mln dlrs to 20 mln dlrs and should be profitable before allowing for extraordinary items related to the acquisition.  
DU PONT <DD> TO SELL CLEVELAND PLANT. Du Pont Co said it agreed to sell its Cleveland chemical plant, the oldest site currently operated by the company, to two employees. Terms were not disclosed. Closing is expected in the second quarter, following approval of definitive agreements. Products made at the plant represent less than 1/10 of one pct of Du Pont's annual sales, it said. Quilon chrome complexes and Volan bonding agents will be supplied by the plant to Du Pont under contract. Established in 1866, the plant was acquired by Du Pont in 1928. The plant no longer fits the company's long-term strategy, Du Pont said  
GERBER <GEB> SETS DEADLINE FOR UNIT'S BUYOUT. Gerber Products Co said it has given management of its CWT Inc trucking subsidiary 60 days to pursue a leveraged buyout of the subsidiary. It said CWT Inc, which has operations in the Midwest and Southeast, has annual revenues of approximately 135 mln dlrs.  
TIME <TL> IN TALKS ON CABLE NEWS CONSORTIUM. N.J. Nicholas Jr., president and chief operating officer of Time Inc, told security analysts the company is now engaged in talks to join a consortium of cable companies that will invest in Cable News Network. Nicholas declined to give any details, but said an announcement might be ready in a few days. He also declined to say whether the investment would be made by Time Inc or American Television and Communications Corp, a public company in which Time owns a majority stake. Cable News Network is owned by Turner Broadcasting System <TBS>.  
ALLWASTE <ALWS> TO ACQUIRE SERVICE FIRM. Allwaste Inc said it agreed in principle to acquire all outstanding stock of a company in the industrial service business for 1.98 mln dlrs in common stock. It did not identify the company to be acquired.  
SOO LINE <SOO> TO SELL LAKE STATES DIVISION. Soo Line Corp said it agreed to sell its Lake States Transportation Division to the newly formed Wisconsin Central Ltd. The division conducts rail operations over about 2,000 miles of railroad in Minnesota, Wisconsin, Michigan and Illinois. Soo Line said in January it was seeking bids for the property. Terms were withheld, but Soo has estimated that the transaction will result in a one-time after-tax loss of 8.0 to 15.0 mln dlrs.  
STARS TO GO <STAR> GETS STORES, AGREEMENT. Stars to Go Inc said it completed its acquisition of 650 video centers previously owned by CVS International Inc and located in Circle K Corp <CKP> stores. In conjunction with the acquistion, Circle K also granted it the exclusive right to install video cassette rental centers in all existing 3,500 Circle K stores, as well as in future stores, for a period of seven years, Stars to Go said. The company also said it currently has a total of 4,650 centers in operation and expects to increase the total to 6,000 by June 30.  
WARBURG PINCUS DECLINES TO UP SYMBION <SYMB> BID. Warburg, Pincus Capital Co L.P., an investment partnership, said it told representatives of Symbion Inc it would not increase the 3.50-dlr-per-share cash price it has offered for the company. In a filing with the Securities and Exchange Commission, Warburg Pincus said one of its top executives, Rodman Moorhead, who is also a Symbion director, met April 1 with Symbion's financial advisor, L.F. Rothschild, Unterberg, Towbin Inc. In a discussion of the offer, Warburg Pincus said Moorhead told the meeting there are no plans to raise the 3.50 dlr bid. Moorhead told the Rothschild officials that Warburg Pincus considers the offered price to be a fair one, Warburg Pincus said. Last Month Warburg Pincus launched a tender offer to buy up to 2.5 mln Symbion common shares.  
CALIFORNIA FIRM HAS FIVE PCT OF MODULAIRE <MODX>. PBS Building Systems of America Inc, an Anaheim, Calif., company, told the Securities and Exchange Commission it has acquired 150,000 shares of Modulaire Industries, or 5.0 pct of the total outstanding common stock. PBS, whose subsidiaries design, make, sell and lease nonresidential relocatable modular buildings, said it bought the stake for 855,768.75 dlrs "to acquire an equity interest in Modulaire, while it evaluates Modulaire." Depending on several factors, PBS said it may decide to buy additional Modulaire common shares.  
BOISE CASCADE <BCC> COMPLETES SALE OF UNIT. Boise Cascade Corp said it completed the previously announced sale of its Consumer Packaging Division to Sonoco Products Co <SONO> for approximately 175 mln dlrs.  
ALLIED-SIGNAL <ALD> TO SELL ELECTRONICS UNIT. Allied-Signal Inc said it agreed to sell its Amphenol Products unit to a subsidiary of LPL Investments Group <LPLI>, a Wallingford, Conn., investment company, for 430 mln dlrs cash. Closing is expected soon, pending appropriate approvals, the company said. LPL indicated that at closing, warrants will be sold which, when exercised, will reduce its stake in the subsidiary, Amphenol Acquisition Co, to 60 pct, the company said. Lisle, Ill.-based Amphenol had 1986 sales of about 500 mln dlrs. It makes brand name interconnection products. LPL also said Merrill Lynch and Co has committed to buy 175 mln dlrs of subordinated and preferred debt in the new LPL unit, according to Allied-Signal. Canadian Imperial Bank of Commerce has committed up to 340 mln dlrs in senior debt financing, it said. Allied-Signal said in December it was offering for sale Amphenol and six other operating units in its electronics and instrumentation sector. Merrill Lynch, Needham and Co and Lazard Freres served as financial advisors, it said.  
OCCIDENTAL <OXY> UNIT SELLS DIVISION. Occidental Petroleum Corp's Occidental Chemcial Corp said it sold the Process chemicals division it acquired as part of the September 1986  purchase of Diamond Shamrock Chemicals to Henkel KGAA of Dusseldorf, West Germany. Terms were not disclosed. The division makes specialty industrial chemicals, it said. Later, industry sources said the division, which had worldwide sales of some 160 mln dlrs last year, was sold for just under 200 mln dlrs.  
U.K. FIRM UPS ITALY FUND <ITA> STAKE TO 12 PCT. Lloyds Investment Managers Ltd, a London-based investment firm, said it raised it stake in Italy Fund to 760,500 shares, or 12.0 pct of the total outstanding common stock, from 466,000 shares, or 7.4 pct. In a filing with the Securities and Exchange Commission, Lloyds said it bought the additional 294,500 Italy Fund common shares since November 7 for a total of 3.3 mln dlrs. Another 70,000 shares of the stake are held by an affiliate, it said. It said its dealings in Italy Fund stock are for investment purposes only and that it has no current plans to increase or decrease its current stake.  
INVESTOR HAS FIVE PCT OF SAGE DRILLING <SAGE>. Arthur Appleton, a Chicago investor, told the Securities and Exchange Commission he has acquired 39,000 shares of Sage Drilling Co Inc, or 5.1 pct of the total outstanding common stock. Appleton said he bought the stock for 116,554 dlrs for investment purposes. Depending on several circumstances, Appleton said he may buy more Sage common shares, or sell some or all of his current stake.  
CIS TECHNOLOGIES<CIH> TO SELL SHARES TO SWISS CO. CIS Technologies Inc said it executed a formal share purchase agreement with Swiss Reinsurance Co of Zurich, Switzerland. Under terms of the agreement, Swiss Re will acquire 5.5 mln newly issued CIS stock at 2.50 dlrs a share, or 13.8 mln dlrs. This purchase represents 30 pct of the outstanding shares. Swiss Re will acuqire 500,000 of the shares immediately and remaining shares will be bought after a due diligence report is completed by auditors. The transaction is expected to be complete by June 11.  
BENEFICIAL <BNL> UNIT SALE APPROVED. Beneficial Corp said the sale of its American Centennial Insurance Co subsidiary to <First Delaware Holdings Inc> was approved by the Delaware Insurance Department. Under the transaction, American Centennial will receive a cash infusion of 200 mln dlrs, including the settlement of tax sharing agreements with Beneficial Corp, Beneficial said. It will also receive 25 mln dlrs from Beneficial International Insurance Co, another Beneficial subsidiary being purchased by the management-led group of First Delaware, the company said.  
UNION TO PROTEST DART'S SUPERMARKETS <SGL> BID. The United Food And Commercial Workers said that more than 1,000 rank-and-file members of the union will demonstrate Monday at Dart Group Corp's headquarters protesting Dart's proposed 1.73 billion dlr takover of Supermarkets General <SGL>. Supermarkets is best known for its Pathmark chain of supermarket drug stores in the New York and New Jersey area and also owns Rickels home centers. The union said that it is firmly against the Dart bid because "workers have always ended up with a raw deal in the current takeover mania." A Union statement said: "We do not intend to allow our members to pick up the tab for Supermarket General's executives and the bankers or the Dart Group who stand to make millions." Dart is controlled by the Haft family of Washington, which last year made a bid for California-based Safeway Stores Inc. The Hafts lost, but walked away with at least 100 mln dlrs in profits, analysts estimate. The union said that Dart's Safeway bid forced a major restructuring at Safeway to pay the Hafts and their lawyers and caused a loss of thousands of jobs.  
FCS LABORATORIES <FCSI> TERMINATES DEAL TALKS. FCS Laboratories Inc said merger discussions with an unnamed privately-held company in the health care field have ended without an agreement. The previously announced negotiations began last August, the company said. "It's disappointing to spend so much time on these negotiations and have them fail," said FCS chairman Nicholas Gallo III. "But the discussions could not produce a deal acceptable to our board in the context of the company's stronger financial position today as compared to six months ago." Gallo said FCS will stop actively seeking potential merger partners, but will respond to serious inquiries. "We are determined to follow our plan to restore this company to profitability," he said. "To continue actively searching for potential acquirers inherently forces us to postpone the implementation of critical decisions which are part of the plan." The company, which has 4,475,930 common shares outstanding, reaffirmed it expects to be profitable in the second half of the fiscal year ending September 30, 1987.  
MID-STATE <MSSL>, FIRST FEDERAL IN DEAL. Mid-State Federal Savings and Loan Association said it and First Federal Savings and Loan Association of Brooksville <FFBV> reached a definitive merger agreement. As previously announced, Brooksville shareholders will get cash and stock in exchange for their shares. The transaction is expected to be completed during the summer 1987.  
MEMOTEC DATA COMPLETES TELEGLOBE ACQUISITION. <Memotec Data Inc> said it completed the previously announced 488.3 mln dlr acquisition of Teleglobe Canada from the federal government. Memotec Data said Teleglobe, which has provided Canada's overseas telecommunications services since 1950, now becomes Teleglobe Canada Inc, a unit of Memotec. Teleglobe president and chief executive Jean-Claude Delorme will continue in the same post, the company said. In addition to the sale price, the government will receive Teleglobe's accumulated cash of 102 mln dlrs and a special 18 mln dlr dividend, making total proceeds 608.3 mln dlrs.  
AMERON <AMN> ADOPTS SHAREHOLDER RIGHTS PLAN. Ameron Inc said its board adopted a rights plan designed to protect shareholders from potentially unfair takeover tactics. The plan calls for distribution of one right for each of its outstanding common shares and each right entitles the holder to buy one/one-hundredth of a share of newly authorized Series A Junior Participating cumulative Preferred stock at an exercise price of 55 dlrs, Ameron said. It said the rights are exercisable if a group acquires 20 pct or more of its common stock or announces a tender offer for 30 pct or more of its shares.  
FCS LABORATORIES <FCSI> ENDS MERGER TALKS. FCS Laboratories said its merger talks with another unidentified company in the health care field ended without agreement. The talks began last August, the company said. The company also said it will no longer actively seek out potential merger partners, but will respond to serious inquiries.  
BRISTOL-MYERS <BMY> REVIEWING SCIMED MERGER. SciMed Life Systems Inc <SMLS> said Bristol-Myers Co is analyzing the pending lawsuit brought against SciMed by <Advanced Cardiovascular Systems Inc> to determine whether to consummate its previously announced plans to merge with SciMed. The company said its was served the suit in Minneapolis on March 31, the day after it announced its definitive merger agreement with Bristol-Myers. SciMed said the suit, which alleges that SciMed infringed on Advanced Cardiovascular patents, is without merit.  
BELL PETROLEUM <BPSIO>, REGAL TO FORM PLAN. Bell Petroleum Services Inc said it agreed to begin talks with Regal International Inc to form a plan of reorganization under which Bell would become a subsidiary of Regal. The plan would be subject to Bankruptcy court approval due to Bell's status as a debtor-in-possesion under Chapter 11. the company's expect to file a plan by the end of May. This agreement terminates litigation between the companies concerning previous attempts at a plan of reorganization.. Bell is also free to continue talks with any third parties interested in an acquisition, it said.  
SEC CLARIFIES POSITION ON TENDER OFFER CHANGES. The Securities and Exchange Commission reminded corporate raiders and others tendering for the shares of companies that they must extend the period their offers are open if key conditions are changed. Specifically, the agency said those making tender offers for companies' stock must extend the offers if they decide to eliminate conditions requiring a minimum number of shares to be tendered in order for the offers to be valid. Tender offers typically include minimum share conditions. As a result, a purchaser would not be bound to buy the shares that were tendered if the minimum level were not reached. In an interpretation of current rules, which officials said clarifies the SEC's present position, the agency said a tender offer must be extended if a minimum share condition is waived, even if the purchaser reserved the right to do so. The interpretation makes clear that waiving a minimum share condition is a "material change" of the tender offer under U.S. securities law, SEC officials said. The SEC has already said that other specific material changes, such as changes in the percentage of securities being sought or the price being offered, made during the course of a tender offer require a 10-day extension of the offer. The length of the extension, which is aimed at giving shareholders an adequate chance to assess revisions of a tender offer, was not specified in cases where the minimum share conditions were waived. SEC officials said the length of the extension in such cases would depend on the facts and circumstances surrounding each case, but would generally be between five and 10 days. The agency cited two recent tender offers in which waivers of a minimum share conditios were tried on the last day of each offer, denying shareholders the chance to react to the new information. Officials declined to identify the two offers. "If a bidder makes a material change near or at the end of its offer, it will have to extend the offer to permit adequate dissemination," the SEC said. Federal securities law requires that all tender offers remain open for at least 20 business days.  
GENCORP <GY> UNIT COMPLETES WOR-TV SALE. GenCorp said its RKO General Inc subsidiary completed the sale of WOR-TV to MCA Inc <MCA> for 387 mln dlrs. The Federal Communications Commission approved the sale last December, GenCorp said. The closing was delayed because that decision was appealed by four parties to the U.S. Court of Appeals, GenCorp explained. WOR-TV is based in  Secaucus, N.J., GenCorp said. Earlier today, <General Partners> said it was prepared to raise its bid to 110 dlrs per share, or even more, in its bid for GenCorp.  
SNYDER <SOI> MAKES CENERGY <CRG> EXCHANGE OFFER. Snyder Oil Partners L.P. told the Securities and Exchange Commission it made an exchange offer to Cenergy Corp that would allow Snyder to acquire up to 49.9 pct of the company's common stock. Under the exchange offer, which was proposed yesterday to Cenergy's officers and directors, each share of Cenergy common stock could be exchanged for 8.50 dlrs in market value of Snyder's limited partnership units, Snyder said. Under the proposal, Snyder, which already holds 1,170,400 Cenergy common shares, or 12.0 pct of the total, could boost its Cenergy stake to a total of 49.9 pct, it said. Snyder did not say whether it has received any response to its proposal from Cenergy. If it acquires the 49.9 pct stake, Snyder said in its SEC filing it would use the stock to "obtain a proportionate beneficial interest" in the company's assets and liabilities. It said it has not decided its next move it the exchange proposal does not lead to negotiations with Cenergy. Snyder said it may boost its stake or sell some or all of its current holdings. It repeated a statement made in its initial SEC filing last month that it is considering several alternatives, including seeking control of Cenergy.  
HARLEYSVILLE GROUP <HGIC> SEEKS TO ACQUIRE FIRM. Harleysville Group Inc said it was in talks to acquire Atlantic Mutual Fire Insurance Co, a property and casualty insurer licensed in five southern states. The company said it believes an acquisition could be completed by June 30, subject to approval by regulatory and Atlantic Mutual policyholders. Harleysville plans to invest about four mln dlrs in the business if the deal is completed.  
KROGER <KR> TO BUY EIGHT FOOD STORES. Kroger Co said it agreed to buy nine retail food stores from the Dallas division of <Safeway Stores Inc>, which announced it was closing the 141-store division as part of a restructuring. Terms were not disclosed. Kroger expects to take over operation of the stores, one of which is under construction, in late April. The addition of the stores will bring Kroger's Dallas division to 75 stores, it said. It operates more than 1,300 stores in 20 states.  
RVIAL TO UNION CARBIDE EMERGES IN FRENCH BID. <Carburos Metalicos> of Spain has bid 2,205 francs a share for French chemicals group <Duffour et Igon>, rivalling the 2,100 franc bid announced yesterday by Union Carbide France, the French subsidiary of the U.S. Chemical giant Union Carbide Corp <UK.N>, the stockbrokers' assocation (CSAC) said here. Duffour et Igon's capital is comprised of 133,100 shares with a nominal value of 100 francs each. Shares were last quoted at 856 francs on January 9. Banque Paribas will act for Carburos Metalicos, while Union Carbide France's bid is being led by Rothschild et Associes Banque. Duffour et Igon shares will be suspended on April 6 and 7 and will resume trading on April 8.  
METROMEDIA BUYS WARRANT FOR SHARES OF ORION. <Metromedia Co> said it purchased from Time Inc's <TL> Home Box Office Inc a warrant to purchase 800,000 shares of common stock of Orion Pictures Corp <OPC>. The price for the warrant was 10 mln dlrs, Metromedia said. It added that it now owns 16.4 pct of the outstanding common stock of Orion.  
HUTTON <EFH> STILL INTERESTED IN PUROLATOR <PCC>. E.F. Hutton LBO Inc is still interested in an acquisition of Purolator Courier Corp, and is examining the possibility of raising its 35 dlr per share offer, an E.F. Hutton spokesman said. Hutton's offer was topped by a 40 dlr per share offer from Emery Air Freight Corp <EAF> earlier this week. "We're definately not out of it at this point," the Hutton spokesman said. "We want to see what the offer is completely and understand it fully, and then fashion our response," the spokesman said. After Emery made its offer, Hutton extended the deadline on its offer to Monday. The offer was to have expired Wednesday. Analysts said it might be difficult for Hutton to raise the offer since Emery, an overnight courier, might have an easier time justifying a lofty price since it would realize cost savings by combining its business with those of Purolator. Purolator, a New Jersey-based overnight courier, has declined comment. Purolator had traded above the Hutton offer price on speculation a new bidder would emerge. It was up 1/8 today at 40-3/8, above the Emery offer.  
BAYOU INTERNATIONAL GETS STAKE IN AMALGAMATED. Bayou International Ltd said it acquired 19.9 pct of <Amalgamated Equities Ltd> of Australia for 710,000 dlrs. Bayou is 55.2 pct owned by <Australia Wide Industries Ltd>.  
IROQUOIS BRANDS <IBL> REBUFFS LYON FOODS CLAIMS. Iroquois Brands Ltd said it has been sued by Lyon Food Cos Inc which is seeking 2.3 mln dlrs in damages in connection with the April 1986 nine mln dlrs purchase of Iroquois' former specialty food products segment. Iroquois said that based upon the defenses it will assert, it does not believe that any charge against income is required as a result of the claim.  
TEXAS AMERICAN <TXA> BANKS TO BE MERGED. Texas American Bancshares Inc said three of its Texas American banks will be merged into Texas American Bank/Galleria. The corporation said the Spring Branch, Fonderen and Gulfway Texas American banks will become separate banking offices of TAB/Galleria.  
DOE ISSUES OFFER TO BUY ALASKA POWER UNIT. The U.S. Energy Department issued a request for proposals to buy the Snettisham Hydroelectric project, a major part of the Alaska Power Administration. It said invitations were sent to two Alaskan electric utilities, the city and borough of Anchorage and the state of Alaska.  It did not cite a possible purchase prices. The requests were limited to Alaskan entities because the purpose of privatization of the administration was to put the local utility into the hands of a local body, the DOE said. It added that proposals are due back by August three. The DOE said it then had 120 days to select a proposal that it would recommend to Congress, which then would vote the recommendation up or down. Proposals to buy the other major part of the Alaska Power Administration, the Eklutna project, was expected to be issued in early June, it said.  
SCI <SCIS> BUYS FORTUNE <FSYS> COMPUTER ASSETS. Fortune Systems Corp and SCI Systems Inc said they signed a letter of intent covering the purchase of Fortune's microcomputer business assets for an unspecified amount of cash. Fortune Systems makes a desktop computer systems.  
INVESTOR GROUP CUTS ROSPATCH <RPCH> STAKE. A group of New York investors said it lowered its stake in Rospatch Corp to 170,250 shares, or 7.0 pct of the total outstanding common stock, from 202,108 shares, or 8.3 pct. In a filing with the Securities and Exchange Commission, the group said it sold a net 31,858 shares of Rospatch common stock between February  2 and March 31 at prices ranging from 21.50 to 25.13 dlrs a share. The group includes Brookehill Equities Inc, a brokerage firm, and Moore, Grossman and deRose Inc, an investment advisor.  
CYACQ TERMINATES TENDER FOR CYLCOPS <CLY>. CYACQ Corp said it terminated its February six tender offer for Cyclops Corp. CYACQ was unsuccessfully bid against Dixons Group Plc for control of Cyclops. As of March 27, Dixons Group Plc had acquired more than 80 pct the stock under an increased tender offer.  
INVESTOR LIFTS MYERS <MYR> STAKE TO 12.1 PCT. Leonard Chavin, a Chicago real estate developer who has said he is considering seeking control of L.E. Myers Co Group, said he raised his stake in the company to 273,100 shares, or 12.1 pct, from 219,600, or 9.7 pct. In a filing with the Securities and Exchange Commission, Chavin said he bought 53,500 Myers common shares between March 10 and 31 at prices ranging from 5-1/2 to six dlrs a share. Last January, Chavin said he retained investment banker R.G. Dickinson and Co to advise him on his Myers stock dealings. He has also said he would be unable to seek control of Myers unless he gets financing.  
INVESTOR MULLS KAPPA<KPA>-RADIATION<RADS> MERGER. Michael Krupp, a Golden, Colo., businessman and major shareholder of Kappa Networks Inc, said he and Kappa's management are considering seeking a merger between Kappa and Radiation Systems Inc. In a filing with the Securities and Exchange Commission, Krupp said companies he controls and Kappa acquired a combined 292,000 Radiation System shares, or 5.25 pct of the total. Krupp, who has a 24.4 pct stake in Kappa, said he and Kappa management believe a Kappa-Radiation Systems combination would be good for both companies. But no decision has been made on whether or how to proceed with a merger attempt, he added.  
OLIN <OLN> UNIT ACQUIRES IMAGE TECHNOLOGY. Olin Corp's Olin Hunt Specialty Products Inc said it acquired Image Technology Corp for undisclosed terms. Image Technology makes chemicals for the semiconductor industry.  
KEY CENTURION <KEYC> TO BUY BANK OF BUCKHANNON. Key Centurion Bancshares Inc said it reached an agreement in principle to acquire Central National Bank of Buckhannon, in W. Virginia. Terms call for an exchange of 2.75 shares of Centurion shares for each share of Central National. The transaction is valued at 16.2 mln dlrs.  
STURM, RUGER SUBMITS BID FOR SMITH AND WESSON. Sturm, Ruger and Co Inc said it submitted a bid in excess of 60 mln dlrs for Smith and Wesson, a manufacturer of law enforcement firearms, and a unit of Lear Siegler. Smith and wesson is among a number of companies being sold by Forstman and Little after its recent acquisition of Lear Siegler.  
FREEDOM SAVINGS <FRDM> MAY SEEK SALE OR MERGER. Freedom Savings and Loan Association said it may seek a possible sale or merger of the association as it reported a net loss of 112.7 mln dlrs or 31.09 dlrs a share for 1986. The loss included a number of charges, including additions to its loan loss provision of 68 mln dlrs and write-downs on the value of its real estate of 13 mln dlrs. It said it is continuing to work with investment bankers to find sources of new capital, return its non-performing assets to earning status, and reduce operating expenses and liabilities, among other things.  
PUBLISHERS EQUIPMENT <PECN>, TRENTONIAN IN DEAL. Publishers Equipment Corp said it reached an agreement to incorporate flexo printing technology into The Tentonian, an Ingersoll newspaper in Trenton, N.J. It said that mid-1988 will be the target date for start-up for the new equipment which will double the size of its present press.  
GABELLI GROUP CUTS GENCORP <GY> STAKE TO 6.3 PCT. A group led by New York investor Mario Gabelli told the Securities and Exchange Commission it cut its stake in Gencorp Inc to 1,410,184 shares, or 6.3 pct of the total, from 1,626,233 shares, or 7.3 pct. The Gabelli group said it sold 216,049 Gencorp common shares between March 20 and 30 at prices ranging from 108.75 to 114.75 dlrs a share.  
GABELLI EXPLAINS SALE OF GENCORP <GY> SHARES. Mario Gabelli, head of New York investment firm Mario Gabelli and Co, said he sold some shares of GenCorp Inc <GY> as part of a "portfolio rebalancing" process to meet the needs of his more than 600 clients. He said as the stock moved up following acquisition proposals from a group formed by AFG Industries Inc <AFG> and Wagner and Brown, some of his clients were overweighted. Regarding the company's shareholders meeting Tuesday, Gabelli told Reuters, "there was nothing said that caused me to sell or buy." He still thinks "values are 140 dlrs per share or more" and has clients that asked to buy more. Gabelli said he amended certain filings with the Securities and Exchange Commission because his clients are now passive investors. "We wanted to remove our clients from the process unfolding between GenCorp and Wagner and Brown," he said. He said he was pleased that chairman A. William Reynolds stated at the meeting that he found the concept of greenmail to be "repugnant." Greenmail refers to a corporation buying out a shareholder at a premium not available to others.  
INVESTOR BOOSTS FIRST WESTERN <FWES> STAKE. Poul Erik Moller, a Santa Monica, Calif., investor said he raised his stake in First Western Financial Corp to 412,000 shares, or 6.5 pct of the total outstanding common stock, from 347,000 shares, or 5.5 pct. In a filing with the Securities and Exchange Commission Moller said he bought 65,000 First Western common shares between Jan 20 and March 26 at prices ranging from 10.000 to 10.625 dlrs a share. Moller said he bought the stock as a long-term investment and may buy more, but has no plans to seek control of the company.  
INVESTOR BOOSTS FIRST WESTERN <FWES> STAKE. Poul Erik Moller, a Santa Monica, Calif., investor said he raised his stake in First Western Financial Corp to 412,000 shares, or 6.5 pct of the total outstanding common stock, from 347,000 shares, or 5.5 pct. In a filing with the Securities and Exchange Commission Moller said he bought 65,000 First Western common shares between January 20 and March 26 at prices ranging from 10.000 to 10.625 dlrs a share. Moller said he bought the stock as a long-term investment and may buy more, but has no plans to seek control of the company.  
AUSTRALIAN GAS LIGHT CO COUNTER-BIDS FOR TMOC. <The Australian Gas Light Co> (AGL) said it will offer one share plus one dlr cash for every two shares in oil and gas producer <TMOC Resources Ltd> in a counter-bid to the previously reported takeover offer by Santos Ltd <STOS.S>. The offer values TMOC shares at 4.75 dlrs each, based on AGL's closing price of 8.50 dlrs on Friday. TMOC shares jumped to 4.60 dlrs on the announcement from its Friday closing price of 4.15. The AGL offer, the third to be made for TMOC this year, compares with the Santos cash offer of 4.00 dlrs a share. Based on TMOC's issued capital of 62.08 mln shares, the AGL offer values the entire company at 249.9 mln shares. AGL said in a statement that it already holds 10.5 pct of TMOC's issued capital. This compares with the Santos stake of 3.1 pct when it announced its bid in March 23. <Elders Resources Ltd> began the auction for TMOC about three months ago with an unsuccessful 2.55 dlrs a share on-market offer that has since lapsed. AGL said its offer is above the upper end of the range of values placed on TMOC by its advisers in the company's response urging rejection of the Elders Resources bid. AGL said it will make the same offer for TMOC's convertible notes. Accepting share and note holders will participate in AGL's planned one-for-one bonus issue. It said TMOC is already a partner with AGL in the Alice Springs to Darwin gas pipeline and has a number of businesses complementary with those of AGL. AGL is the New South Wales natural gas utility while TMOC has extensive onshore holdings, mainly in Queensland where it owns the Moonie oil field and in the Northern Territory where it operates and holds 43.75 of the Mereenie oil-gas field. It also has interests in a number of gas or oil pipelines.  
TESCO EXTENDS HILLARDS OFFER. Tesco Plc <TSCO.L> said it was extending its 151 mln stg contested bid for <Hillards Plc> until May 1. It said it now controlled 9.8 pct of Hillards shares, comprising acceptances of the offer for 1.5 mln, or 3.1 pct, and 3.2 mln, or 6.7 pct, owned by itself, its pension fund or its associates. It also controlled 23,250 convertible preference shares, or 0.2 pct. Hillards shares were unchanged at 313p while Tesco was two pence firmer at 475p.  
WORMALD TO ACQUIRE STAKE IN HOLMES PROTECTION. Fire protection and security group Wormald International Ltd <WOIA.S> said British-listed <Holmes Protection Group Inc> has agreed to issue it with 6.15 mln common shares of one U.S. Cent par-value at 1.72 stg each. The two groups have also begun exploratory talks on a possible merger of the Holmes business with the compatible businesses of Wormald, comprising some or all of its fire protection and security businesses in the Americas and Europe, Wormald said in a statement. The issue of shares in the New York-based Holmes is conditional upon shareholder approval at a general meeting. Wormald said its stake will represent 9.99 pct of Holmes' existing issued shares and 9.09 pct of the enlarged capital. The issue will raise 10.6 mln stg which will be used for further development of the Holmes business. Wormald said the businesses of the two groups are largely complementary in terms of both geographical spread and the nature of their activities, with Holmes concentrating on burglar alarms and Wormald on fire systems. Holmes's operations are concentrated in and around New York amd Miami. It earned 11 mln U.S. Dlrs pre-tax in its last reported full year, 1985, and 6.0 mln in first half 1986.  
WHITTAKER <WKR> COMPLETES SALE OF MEDICAL UNIT. Whittaker Corp said it has completed the previously-announced sale of its wholly-oiwned Whittaker General Medical Corp subsidiary to R.A.B. Holdings Inc for undisclosed terms. Whittaker General Medical has annual revenues of about 450 mln dlrs.  
ENTERRA CORP <EN> SELLS TWO UNITS. Enterra Corp said it has completed the sale of its Hale Fire Pump co and Macomson Machine Co subsidiaries to a company formed by Los Angeles investment firm McBain, Rose Partners for about 27 mln dlrs in cash. Both Hale and Macomson make fire pumps and related equipment.  
<FMD INC> IN MERGER AGREEMENT. FMD Inc said it has agreed to acquire Bankers Protective Financial Corp for 28,836,000 common shares, subject to approval by the Texas State Board of Insurance. Bankers Protective is a life insurance company based in Texas.  
BOW VALLEY <BVI> TO SELL NORWEGIAN SUBSIDIARY. Bow Valley Industries Ltd said it agreed to sell its wholly owned Norwegian subsidiary to Elf Aquitaine Norge A/S of Stavanger, Norway for 13 mln Canadian dlrs. The principal asset of the subsidiary, Bow Valley Exploration Norge A/S, is  an eight pct interest in the Heimdal gas and condensate field offshore Norway. The sale is expected to conclude by the middle of April, Bow Valley said.  
EMERY AIR FREIGHT SAID HUTTON GROUP ENDS OFFER FOR PUROLATOR COURIER.  EMERY AIR FREIGHT SAID HUTTON GROUP ENDS OFFER FOR PUROLATOR COURIER  
NORANDA BUYS SHARES OF SANIVAN GROUP. <Noranda Inc> said it agreed to buy an initial 1,000,501 treasury shares of <Sanivan Group Inc> at 5.25 dlrs per share. Noranda also has an option until June 30, 1988, to acquire an additional 1,000,501 Sanivan treasury shares at 5.75 dlrs per share. Sanivan is the largest hazardous waste management company in Canada.  
HUTTON <EFH> ENDS PUROLATOR <PCC> BID. Emery Air Freight Corp said it has entered into an agreement with E.F. Hutton Group Inc EFH under which Hutton will terminate its merger agreement with Purolator Courier Corp and its pending 35-dlr-per-share tender offer, effective April 13. Under its merger agreement, Hutton has the right to unilaterally terminate the merger agreement under certain circumstances, including its receipt of less than 66-2/3 pct of Purolator shares or the start of a higher competing tender offer, such as Emery's competing 40 dlr per share offer for Purolator stock. Yesterday, Hutton's PC Acquisition Corp subsidiary extended its tender offer, which was to have expired at midnight, for two more days.  It said it only about 450,000 shares, or 6.5 pct, of Purolator shares had been tendered and not withdrawn, down from an 11.5 pct interest held earlier. Emery's bid expires April 28. Emery said pending the termination of PC Acquisition's merger agreement, PC has released Purolator from an agreement not to discuss Emery's acquisition proposal with Emery. Emery said as a result it is renewing its request that Purolatr enter into merger negotiations with it. Emery said if it were to acquire 51 pct of Purolator shares or control of the Purolator board, it has agreed not to dispute PC Acquisition's right to receive fees that Purolator agreed to pay if PC were unsuccessful in acquiring control of Purolator due to the acquisition of control by another party. The company said it has also agreed to let Purolator pay all of PC Acquisition's documented expenses in connection with the merger agreement up to three mln dlrs and Emery has agreed to pay the amounts itself should Purolator fail to do so.  
CAROLYN BEAN <CBEN> COMPLETES ACQUISITION. Carolyn Bean Publishing Ltd said it has completed the acquisition of greeting card company Millen Cards, which had sales of over 1,500,000 dlrs in 1986, for undisclosed terms. The company said 90 pct of Millen's cards have been sold in the northeast and mid-Atlantic states, but Bean expects to increase sales to 2,500,000 dlrs this year by distributing the line nationally. Millen specializes in Jewish religious cards and also sells traditional greeting cards.  
CHESAPEAKE <CSK> SEEKS TO SELL UNIT. Chesapeake Corp said it has retained Salomon Inc <SB> to help it sell Plainwell Paper Co Inc, a maker of premium coated and uncoated printing papers and technical specialty papers with a capacity of 85,000 short tons a year. The company said it has decided to sell Plainwell in ordfer to focus on the production of kraft and tissue products, containers and treated wood products.  
AMERICAN SPORTS ADVISORS <PIKS> TO LIQUIDATE. American sports Advisors Inc said it has agreed to sell its sports handicapping and publication business to Professor Enterprises for about 1,650,000 dlrs and intends to liquidate after closing. The transaction is subject to shareholder approval. Professor is owned by American Sports president Edward C. Horowitz and Mike Warren, it said.  
TELE-COMMUNICATIONS <TCOMA> SELLS CABLE SYSTEMS. Knight-Ridder Inc <KRI> said its TKR Cable Co joint venture with Tele-communications Inc has signed a letter of intent to acquire cable television systems with 55,000 basic subscribers in Wildwood, N.J., and Ramapo and Warwick, N.Y., from Tele-Communications for undisclosed terms.  
BROKERAGE FIRM UPS STAKE IN ALLEGHENY <AG>. The New York brokerage firm of Spear, Leeds and Kellogg told the Securities and Exchange Commission it had increased its preferred stock in Allegheny International Inc to 8.6 pct, from 7 pct. It said it may buy additional shares, but had not decided whether to offer its shares in response to a tender offer by Sunter Acquisition Corp, a unit of First Boston Inc. The brokerage firm said it bought the Allegheny shares March 30-April 2 for 86.50-87.25 dlrs each.  
CORROON AND BLACK <CBL> COMPLETE ACQUISITION. Corroon and Black Corp said it completed the acuqisition of <Contractors Planning Group Inc> in an exchange of shares. Contractors is headquartered in Garden City, N.Y., and has branch offices in Philadelphia, Boston, and Cheshire, Conn.  
COLONIAL <CLBGA> TO ACQUIRE PENSACOLA BANK. Colonial BancGroup said it and The Liberty Bank of Pensacola, Fla., signed a letter of intent for Colonial to acquire Liberty. Terms of the acquisition were not dislcosed. Colonial said the acquisition was its first move toward acquiring and out-of-state bank under Alabama's regional interstate banking law. Liberty has total assets of 35 mln dlrs.  
GOLDSIL AND GOLDEN RULE AGREE TO MERGE. <Golden Rule Resources Ltd> and Goldsil Resources Ltd said they had agreed to merge. The merged company will issue to each Golden Rule shareholder 1-1/2 shares and one warrant. The warrant will be for a term of two years. Payment of 3.10 dlrs and delivery of two warrants will entitle the shareholder to one additional share of the merged company, the companies said. Each Goldsil shareholder will receive one share and one-half warrant. The warrant will be for a term of two years. Payment of 3.10 dlrs and delivery of two warrants will entitle the shareholder to one additional share of the merged company.  
INVESTORS RAISE STAKE IN PUROLATOR <PCC>. Two New York management investment firms told the Securities and Exchange Commission they had increased their holdings in Purolator Courier Corp to 7.2 pct, from 6.2 pct. Mutual Shares Corp and Mutual Qualified Income Fund Inc said they were weighing offers to buy Purolator shares from PC Acquisition Inc, a unit of E.F. Hutton LBO Inc, for 35 dlrs a share, and from EAF Acquisitions Corp Inc, a unit of Emery Air Freight Corp. at 40 dlrs They told the commission they had bought their new Purolator shares March 25-27 for 34.875-35.250 dlrs each.  
ACME PRECISION <ACL> SETS HOLDER VOTE ON BUYOUT. Acme Precision Products Inc said it set its annual meeting for May 14 for shareholders to vote on the proposed management-led leveraged buyout of the company. The record date for the meeting will be April 16, with proxy materials to be sent to shareholders on or before April 20. The buyout proposal, which was previously announced, will be structured as a one for 100,000 reverse stock split. It must be approved by a majority of shareholders. Acme Precision has 1,008,857 shares outstanding.  
FAMILY HEALTH SYSTEMS <FHSY> TO MAKE PURCHASE. Family Health System Inc said The Federal Bankruptcy Court in Fort Worth, Texas has approved its offer to purchase <Sheppard Dental Centers Inc's> assets from a Chapter 7 bankruptcy proceeding for about 300,000 dlrs. FHS administers and markets multiple office dental practices in the Dallas metropolitan area as well as dental offices in the Dallas Metroplex. The company said it plans to open 12 locations in Dallas by the end of 1987.  
NORTH-WEST TELECOM <NOWT> MAKES ACQUISITION. North-West Telecommunications Inc said it acquired the assets and customer base of Com-Tel Systems Inc, a telephone interconnect firm that operates in La Crosse and Stevens Point, Wis. and Rochester, Minn. It said the purchase only includes the businesses in La Crosse and Rochester. Terms were not disclosed.  
GENERAL PARTNERS IS TERMINATING OFFER FOR GENCORP INC.  GENERAL PARTNERS IS TERMINATING OFFER FOR GENCORP INC  
PARTNERSHIP BUYS 5.1 PCT ORANGE-CO <OJ> STAKE. Parsow Partnership Ltd, an Elkhorn, Neb., investment partnership, said it bought a 5.1 pct stake in Orange-Co Inc common stock as an investment. In a filing with the Securities and Exchange Commission, Parsow said it had bought all its 220,000 Orange-Co shares in the open market with funds from its working capital. The partnership, whose sole general partner is Elkhorn investor Alan Parsow, said it "has no present intention of effecting any change in the control of Orange-Co Inc."  
TEXTRON <TXT> PLANS SALE OF AVCO DIVISION. Textron Inc said it plans to sell its Avco Specialty Materials Division as part of its debt reduction and restructuring. The company said it will use proceeds from the sale to reduce the debt incurred by its acquisition of Ex-Cell-O Corp last year. Textron said Morgan Stanley and Co will represent it in the sale.  
AVON SAYS IT TO BUY GIORGIO INC, A FRAGRANCE COMPANY, FOR 185 MLN DLRS.  AVON SAYS IT TO BUY GIORGIO INC, A FRAGRANCE COMPANY, FOR 185 MLN DLRS  
AVON PRODUCTS <AVP> TO BUY GIORGIO FOR 185 MLN. Avon Products Inc said it reached an agreement in principle to purchase <Giorgio Inc>, a fragrance company, for 185 mln dlrs in cash. Giorgio's annual revnues are more than 100 mln dlrs, Avon said. The acquisition has been approved by Avon's board, with the closing set for May 7. The transaction would have no impact on Avon's current dividend rate, it said. Giorgio's boutique in Beverly Hills, Calif., will be sold back to Fred Hayman, one of the shareholders, who will continue to operate it independently, Avon said. Avon said it identified Giorgio more than a year ago as a preferred acquisition candidate. It said it is launching a prestige fragrance developed in conjunction with Catherine Deneuve this spring. Giorgio will be operated as a separate subsidiary, Avon said, and would not compete with Avon's direct selling beauty products business.  
GENCORP <GY> SAYS BUYBACK BETTER THAN TAKEOVER. GenCorp Inc said the decision by General Partners, comprised of AFG Industries and Wagner and Brown, to end its hostile offer for the company supports its belief that the buy back offer it announced yesterday was a "financially superior alternative." GenCorp said it would annouce details of its plans to buy back 54 pct of its stock for 1.6 billion dlrs, or 130 dlrs a share, later this week. GenCorp's buy back was made to fend off the hostile 2.3 billion dlr, 100-dlr-a-share, tender offer by AFG and Wagner and Brown. Earlier today AFG and Wagner and Brown said that without the benefit of additional information available to GenCorp's management, it cannot compete economically with GenCorp's proposal. The group said it is ending its tender offer for GenCorp and promptly return to tendering shareholders all shares tendered pursuant to its offer. The group owns 9.8 pct, or 2,180,608 shares, of GenCorp's outstanding shares.  
BERRY PETROLEUM, NORRIS OIL <NOIL> TO MERGE. Berry Petroleum Co said its board and the Norris Oil Co board approved a merger agreement that calls for Norris to become a wholly-owned Berry subsidiary. Berry, a privately-owned company which already owns 80.6 pct of Norris Oil's stock, said the agreement calls for Norris' public shareholders to receive 0.0333 Berry common shares for each Norris share held.  
CANNON <CAN> SELLS STAKE IN HBO/CANNON VENTURE. Cannon Group Inc said it agreed in principle to sell its 50 pct interest in the HBO/Cannon Video joint venture to the Home Box Office unit of Time Inc <TL>. The company said it is making the sale because in the near future all of its video products will be licensed in the United States and Canada to either the Warner Brothers unit of Warner Communications Inc <WCI>, or to Media Home Entertainment.  
SPORTSCENE ACQUIRES CHRISTOPHE VAN HOUTTE CHAIN. (Sportscene Restaurants Inc) said it acquired (Cafe Christophe Van Houtte Inc), a cafe chain with ten franchises and one corporate restaurant, for an unspecified amount of cash and Sportscene shares.  
MANUFACTURERS <MHC> IN BUILDING FORECLOSURE. Manufacturers Hanover Corp said its OFP Inc unit acquired a Dallas office building through foreclosure. The company said it foreclosed on the Allied Bank Tower, a 1.2 mln-square-feet office building at One Fountain Place, Dallas.  
COCA-COLA BOTTLING <COKE> TERMINATES TALKS. Coca-Cola Bottling Co Consolidated said it terminated negotiations with the proposed purchaser of its wholly owned subsidiary headquartered in Vancouver, B.C. The company said it is vigorously continuing its efforts to sell its Canadian operations, substantially on the terms and conditions previously announced.  
CAREPLUS <CPLS> SEEKS APPROVAL IN ACQUISITION. CarePlus Inc said it will seek shareholder approval of its proposed acquisition of certain assets and assumption of certain liabilities of Professional Care Inc <PCI>. In connection with the acquisition, shareholders will be requested to approval the merger of CarePlus into its newly formed Delaware subsidiary, CarePlus said. CarePlus said its board has tentatively determined that its stock would be exchanged for common stock of the new corporation at the rate of seven for one.  
GROUP TO BUY MORE INTERMEDICS <ITM> SHARES. An investor group including Bessemer Securities Corp and Cilluffo Associates told the Securities and Exchange Commission it asked federal antitrust regulators for advance clearance to hold more than 30 mln dlrs of Intermedics Inc common stock. The group said it currently holds 1.8 mln shares or 17.6 pct of the total outstanding following purchases of 84,300 shares March 18-April 1. A group spokesman would not disclose the total purchase price of its current holdings. The group has said it is accumulating Intermedics stock for investment purposes.  
GROUP RAISES TEXSTYRENE <FOAM> STAKE TO 11.7 PCT. An investor group led by Dart Container Corp, a Sarasota, Fla., plastic utensil maker, told the Securities and Exchange Commission it raised its stake in Texstyrene Corp to 420,500 common shares or 11.7 of the total outstanding. The group said it bought the shares for investment and intends to continue to buy Texstyrene stock in the future. The group said its most recent purchases included 106,000 shares bought March 10-31 in ordinary brokerage transactions.  
ENRO HOLDING BUYS ENRO SHIRT AND FOXCROFT. Enro Holding Corp said it acquired Enro Shirt Co and Foxcroft Ltd from Wilson Bros for 30 mln dlrs. Enro Holding is owned 50 pct by investors and 50 pct by management and others. The investor group bought 50 pct of the common equity and supplied five mln dlrs in mezzanine financing. Management bought the other 50 pct. Congress Financial Group supplied 28 mln dlrs in senior financing and the seller took back a note for 12.1 mln dlrs. Enro Shirt has annual sales of about 42 mln dlrs and Foxcroft has sales of about 13 mln dlrs.  
AMERICAN DYNAMICS <AMDC> TO SELL 51 PCT STAKE. American Dynamics Corp and <Meridian Reserve Inc> said they signed a definitive agreement under which Meridian will buy 81.9 mln shares, or 51 pct, of American Dynamics' common stock. Under terms of the agreement, Santa Ana, Calif.-based Meridian said it will pay Columbus-based American Dynamics one mln dlrs in cash and notes over five years and about 500,000 shares of its common stock. Meridian said it has the option to issue an additional 1,500,000 shares of its common over the next two years in payment of certain of the notes. Meridian, an oil and gas company whose operations are primarily in Oklahoma, said the acquisition will increase its its consolidated assets to 30 mln dlrs and its contractually committed gas reserves to more than 40 mln dlrs at discounted present value. American Dynamics is engaged in gas gathering, transmission and liquids extraction, also in Oklahoma. The companies said they have five extracting plants and about 525 miles of transmission lines in five adjoining Oklahoma counties.  
AMOSKEAG BANK <AMKG> TO SEEK REHEARING. Amoskeag Bank Shares Inc and <Portsmouth Savings Bank> said they will file motions for a rehearing with the New Hampshire Supreme Court of its March 30 ruling that overturned state regulatory approval of Amoskeag's acquisition Portsmouth. "The ramifications of this decision, we believe, go well beyond the affiliation of Amoskeag and Portsmouth Savings Bank," said Amoskeag chairman William S. Bushnell. The transaction was opposed by a group of Portsmouth investors who wanted the bank to remain independent, according to press reports.  
ALLEGHENY <AG> PREFERED SHAREHOLDERS FILE SUIT. Allegheny International Inc, which has agreed to a merge with a jointly-formed First Boston Inc affiliate in a deal worth 500 mn dlrs, said shareholders of its preferred stock have filed a class action complaint against the company. The complaint alleges, among other things, that the company and its board agreed to pay First Boston an illegal seven mln dlr topping fee if it received a higher offer for the company prior to the buyout. The suit contends that this fee hampers Allegheny's ability to attract other offers or take other actions that would benefit holders of preferred stock. The complaint also alleges federal securities laws violations and breach of fiduciary duty. The suit requests an injunction against proceeding with the pending offer being made by Sunter Acquisition to acquire Allegheny. Sunter Acquisition Corp and Sunter Holdings Corp were formed by First Boston and Allegheny. Allegheny said it and the Sunter concerns intend to vigorously defend the complaint's charges. The complaints were filed by Robert Moss and other parties who are believed to own about 230,000 shares of Allegheny's preferred stock.  
U.S. GRAIN CARLOADINGS FALL IN WEEK. U.S. grain carloadings totaled 26,108 cars in the week ended February 21, down 2.2 pct from the previous week but 22.8 pct above the corresponding week a year ago, the Association of American Railroads reported. Grain mill product loadings in the week totalled 11,382 cars, down 1.8 pct from the previous week but 7.6 pct above the same week a year earlier, the association said.  
GAO LIKELY TO SHOW CERTS MORE COSTLY THAN CASH. A study on grain certificates due out shortly from the Government Accounting Office (GAO) could show that certificates cost the government 10 to 15 pct more than cash outlays, administration and industry sources said. Analysis that the GAO has obtained from the Agriculture Department and the Office of Management and Budget suggests that certificates cost more than cash payments, a GAO official told Reuters. GAO is preparing the certificate study at the specific request of Sen. Jesse Helms (R-N.C.), former chairman of the senate agriculture committee. The report, which will focus on the cost of certificates compared to cash, is scheduled to be released in mid March. The cost of certificates, said the GAO source, depends on the program's impact on the USDA loan program. If GAO determines that certificates encourage more loan entries or cause more loan forfeitures, then the net cost of the program would go up. However, if it is determined that certificates have caused the government grain stockpile to decrease, the cost effect of certificates would be less. GAO will not likely suggest whether the certificates program should be slowed or expanded, the GAO official said. But a negative report on certificates "will fuel the fire against certificates and weigh heavily on at least an increase in the certificate program," an agricultural consultant said. The OMB is said to be against any expansion of the program, while USDA remains firmly committed to it.  
SOVIET GRAINS SEEN ENTERING SPRING ON SHAKY NOTE. Soviet winter grains could be off to a faulty start this spring after enduring an usually dry fall and cold winter, weather and crop analysts said. Prospects for another near-record grain harvest in the Soviet Union appear dim at this point, but it is premature to forecast any major crop problems, analysts said. But the situation bears careful watching over the next six weeks and will ultimately impact the Soviet grain supply and future buying plans, analysts of the Soviet Union said. "From a weather standpoint, you can say with certainty that the Soviets are not getting off to a good start and will have a lower crop (than last year)," Gail Martell, chief meteorologist for E.F. Hutton said. The next six weeks in the USSR's grain growing areas will be the crucial period that will determine the final outcome of the winter crops, Martell and other analysts said. "Where the crop is really made or broken is still ahead of us," an Agriculture Department authority on the USSR said. The Soviet Union recently reported that nine mln hectares of winter grain will have to be reseeded due to winterkill. This would be equal to about 25 pct of the total winter crop and would be the second highest winterkill in ten years, the USDA analyst said. With a timely spring, Soviet farmers would probably be able to reseed the damaged acreage with spring crops, but analysts noted that spring crops normally yield lower than winter crops -- sometimes as much as 30-35 pct lower. Normally winterkill is caused by inadequate snowcover combined with cold temperatures. This winter, however, snowcover in Soviet grain areas has generally been excellent, so the bulk of winterkill, analysts speculate, likely has been due to a very dry fall and subsequent poor crop germination. "Fall dryness may be a problem. There's a good correlation between mediocre crops and fall dryness," Martell said. Precipitation last fall was as little as 25 pct of normal in southern and northern Ukraine, and below normal over the entire winter crop area, she said. Recent cold temperatures in grain areas in which the snowcover has been gradually melting could also have caused problems of ice-crusting and winterkill, Jim Candor, senior forecaster for Accu Weather, said. Livestock feed needs have probably increased because of the fall and winter, analysts said. The dry fall damaged pastures, the cold winter raised feed demands and a late spring would require longer off-pasture feeding, they said. "The Soviets are not in a desperate situation ... they don't have to buy (grains) now," a USDA official said. But if the Soviets are worried about their winter crops and if they feel that last year's huge crop of 210 mln tonnes was a one-time fluke brought on by perfect conditions, more Soviet buying might occur to insure crop supplies, he said. Bad weather during the next six weeks could push the Soviets back into the market, weather analysts said. "A lot of winterkill could occur during the next month and a half," Martell said.  
U.S. CONGRESS TO LOOK AT SOIL PROGRAM EXEMPTIONS. The Senate Agriculture Committee is expected to take up a bill tomorrow that would exempt from government conservation regulations those farmers who have rotated alfalfa and other multiyear grasses and legumes with row crops, committee staff said. Under current so-called "sodbuster" law, farmers who planted alfalfa and other multiyear grasses and legumes on highly erodible land in the years 1981 through 1985 lose federal farm program benefits if they produce a row crop on that land in later years. Sen. Edward Zorinsky (D-Neb.), sponsor of the measure, said recently that those crop rotating practices resulted in less erosion than the practices of many farmers who produced strictly row crops.  
IZVESTIA SAYS SOVIET WINTER CROPS NEED RESEEDING. The government daily Izvestia said a considerable amount of Soviet winter crops need to be reseeded and the state 1987 grain harvest target of 232 mln tonnes will not be easy to fulfil. Without giving figures, the newspaper said: "A considerable part of the winter crops must be reseeded, but that creates extra effort in the fields in spring." The Soviet Union has previously said nine mln hectares of winter grain will have to be reseeded because of winterkill. A U.S. Department of Agriculture analyst in Washington has said the figure of nine mln hectares would equal about 25 pct of the total winter crop and would be the second highest winterkill in 10 years. "The planned task of bringing in no less than 232 mln tonnes of grain is not simple," Izvestia said. This week's sudden fall in temperatures has affected large parts of the country and has caused fieldwork to stop in the Ukraine, it said, adding that temperatures fell to as low as minus 30 centigrade in Byelorussia.  
U.S. SENATE PANEL MAKES CONSERVATION EXEMPTION. The U.S. Senate Agriculture Committee approved a measure that would exempt farmers who planted alfalfa or other multiyear grasses and legumes between 1981 and 1985 from a federal conservation requirement. Sen. Edward Zorinsky, D-Neb., said his bill would restore equity under federal sodbuster rules, which currently deny farm program benefits to farmers who, between 1981 and 1985, planted alfalfa and other multiyear grasses and legumes without interrupting the plantings with a row crop. An official from a leading conservation group, who asked not to be identified, said the panel's move was "an unfortunate first action" because it could lead to the exemption of potentially millions of acres from the sod buster regulations, established under the 1985 farm bill.  
RENEWAL OF U.S./USSR GRAIN PACT SAID UNCERTAIN. Prospects for renewal of the five-year U.S./USSR grains agreement are uncertain at this point, a Soviet trade official told Reuters. The current trade imbalance between the United States and the Soviet Union, high U.S. commodity prices, and increased world grain production make a renewal of the supply agreement next year less certain, Albert Melnikov, deputy trade representative of the Soviet Union, said in an interview. The current agreement expires on Sept 30, 1988. Melnikov said that world grain markets are different than when the first agreement was signed in 1975. Statements from both U.S. and Soviet officials have indicate that a long term grains agreement might not be as attractive for both sides as it once was. "We have had one agreement. We have had a second agreement, but with the second agreement we've had difficulties with prices," Melnikov said. "I cannot give you any forecasts in response to the future about the agreement.... I do not want to speculate on what will happen after Sept 30, 1988," he said. Melnikov noted that he has seen no indications from Soviet government officials that they would be pushing for a renewal of the agreement. "The situation is different in comparison to three, five or ten years ago ... We can produce more," he said.  
U.S. CABINET COUNCIL SET TO MULL FARM ISSUES. The Reagan administration's cabinet-level Economic Policy Council is scheduled to meet Friday to discuss, among other issues, the status of agricultural legislation, administration officials said. The officials said discussion of a U.S. Agriculture Department wheat export subsidy to the Soviet Union was not on the agenda. Matters not on the agenda, however, can be brought before the council, the officials said. Grain trade officials have speculated that USDA would make a wheat export enhancement offer to Moscow, but USDA officials have said the matter is not under active consideration. USDA today transmitted to Congress a package of legislative proposals, including bills that would cut target prices and speed up loan rate reductions.  
USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS  26.0 MLN TONNES VS 23.0 IN FEB, 29.9 IN 1985/86.  USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS  26.0 MLN TONNES VS 23.0 IN FEB, 29.9 IN 1985/86  
USDA ESTIMATES 1986 SOVIET GRAIN CROP  AT 210 MLN TONNES VS 210 IN FEB, 192 YEAR-AGO.  USDA ESTIMATES 1986 SOVIET GRAIN CROP  AT 210 MLN TONNES VS 210 IN FEB, 192 YEAR-AGO  
CBT DISCUSSES MAJOR CHANGES FOR RENOVATION. Chicago Board of Trade (CBT) agricultural and financial futures markets could be in for a period of major upheaval later this year if the exchange goes ahead with planned renovation. A CBT spokesman told Reuters the exchange was looking at a number of options to identify the most cost effective and efficient way to proceed, including one which would involve moving the entire grains floor out of the building and into the nearby MidAmerica Commodity Exchange. "One of (CBT Chairman) Karsten Mahlmann's agenda items has been to proceed with renovation in the financial futures room," the spokesman said. Another CBT official, executive vice president George Sladoje, said the issue would be discussed this Friday at a special meeting on the exchange floor. A number of presentations have been made with regard to renovating the financial futures room, Sladoje said. "We've looked at five or six different alternatives, involving such things as flip-flopping the trading rooms," he added. It is conceivable that under a couple of these plans, we might use the MidAmerica Exchange temporarily for some CBT markets, Sladoje said. "If we move out of one floor entirely, then the construction period will be about a year," he said, adding that the issue was likely to go to a membership vote first and then be on the drawing board for eight months to a year. The CBT spokesman stressed that discussions were very preliminary at this stage and nothing was likely to begin until this summer at the earliest. In order to renovate the crowded financial futures pits, exchange officials have discussed providing them a temporary home next door in the present grains-dominated area. This could involve moving CBT markets in U.S. Treasury Bond futures, Treasury Notes, Muni-bonds, and options on T-Bonds and T-Notes through an adjoining corridor, while utilizing the MidAmerica floor for such CBT futures contracts as corn, wheat, soybeans, soybean products and agricultural options. Any such moves could meet with opposition among some CBT members. One senior floor trader said the financial futures room badly needs renovating. "There is talk the grains floor will shift to the MidAm and the financials will move to the grains area," he said. The CBT spokesman said another option being discussed was to renovate the financial floor in quadrants, one quarter at a time. "The first step, after deciding the most effective way to proceed, would be to get architectural and engineering drawings," he said. He added that it was difficult at present to determine an exact time frame for any possible moves. "This is a major undertaking and a process that would spread out over next year," he said. Floor traders at the MidAmerica Commodity Exchange, which merged with the CBT about a year ago, said they were preparing to vacate their floor at the end of this month. Space has recently been cleared for them at the CBT by moving its Major Market Index pit into the area once reserved for lightly-traded CBT gold and silver futures, which now share their trading area. The MidAm specializes in mini-contracts in grains, livestock, metals, financials and foreign currencies as well as some options contracts. "Rumor has it that the CBT grains are coming over here because the bonds are too crowded," one MidAm trader said. Another source at the MidAm said this change could take place by July or August.  
CARGILL OFFICIAL DEFENDS CERTIFICATE PROGRAMS. The use of generic in-kind commodity certificates has helped ease storage problems and is a necessary part of export promotion programs, a senior executive for the world's largest grain company said. Testifying before the House Agriculture subcommittee on wheat, soybeans and feedgrains, Robbin Johnson, vice president of Cargill, Inc., disputed claims that U.S. grain companies have made huge profits from certificate trading. "The certs program is not in any way a windfall to the trade," he said. Johnson said that Cargill has been dealing with a two pct spread in certificate transactions, and that this is within the normal grain marketing levels. Johnson recognized current concern over the cost of certificates as compared to cash, but said that critics need to look more closely at the savings caused by certs, noting for example that widespread use of certs in the PIK and Roll marketing technique last summer helped ease storage costs. Certificates are also an important part of any export promotion program, he said. "The more you look at ways to expand export markets, the more you have to look at ways to expand certs to put more grain into the market to meet demand," he said. Subcommittee chairman Dan Glickman (D-Kans.) said his committee would be looking at the certificate program later this year and studying the General Accounting Office report on certificate costs.  
CHINA'S JANUARY GRAIN EXPORTS FALL. China's grain exports in January totaled 386,157 tonnes, down 22.1 pct from January 1986, customs figures show. They gave no detailed breakdown. The official China Economic News quoted the figures as showing tea exports rose 9.7 pct to 8,474 tonnes during the month. Imports of wool rose 117.6 pct to 10,248 tonnes over the same period, the figures show.  
LYNG SAYS TOO LATE FOR CROP DECOUPLING THIS YEAR. U.S. Agriculture Secretary Richard Lyng said it is too late to implement a full 0/92 acreage provision, or "decoupling," for 1987 grain crops. "I think there's a chance we'll see that legislation (0/92) passed, (but) not for 1987 crops. It's too late," Lyng told the National Grain and Feed Association convention here. Lyng added that there seems some support in Congress for 0/92 and there was a good chance a pilot 0/92 program will be passed as part of a pending disaster bill. But he indicated that it is already too late in the year to alter the 1987 crop program. Sign-up for spring crops closes the end of this month. Overall, Lyng predicted very little change will be legislated in the 1985 farm bill this year.  
EEP SHOULD BE USED TACTICALLY, YEUTTER SAYS. U.S. Trade Representative Clayton Yeutter said the Export Enhancement Program, EEP, should be used as a "tactical tool" and not as a general policy. Yeutter made the comment in response to a question whether the U.S. should expand the EEP to cover grain sales to the Soviet Union. He did not comment directly on the Soviet question, replying that any decision would be made at the highest levels of the Reagan administration, and "I don't want to preempt that." Yeutter told the National Grain and Feed Association EEP should continue to be used as a tactical tool against the European Community but not as a general policy. He said selective EEP use has been successful in pressuring the E.C.  
U.S. SENATOR UNCOMMITTED ON OFFERING 0/92 BILL. Senator Richard Lugar of Indiana, ranking Republican on the U.S. Senate Agriculture Committee, has not decided whether to introduce an administration-backed bill to apply the so-called 0/92 provision to 1988 through 1990 grain crops, an aide to the senator said. The Reagan administration has asked Lugar to offer the measure, the aide said. However, a number of farm groups have told Lugar they oppose the proposal on the grounds it would reopen the 1985 farm bill, and the senator has decided to take a second look at the proposal, the aide said. Last week the aide indicated Lugar was planning to offer the 0/92 measure and a bill to tighten a payment limitation loophole.  
CHINA TO IMPORT MORE GRAIN IN 1987. China's grain imports will rise in 1987 because of a serious drought and increasing demand, but will be not be as large as in the past, Chinese officials and Japanese traders told Reuters. They said foreign exchange constraints and national policy would not allow a return to large-scale imports, which peaked at 16.15 mln tonnes in 1982. An agricultural official of the Shanghai government put maximum imports at about 10 mln tonnes this year, against 7.73 mln in 1986 and 5.97 mln in 1985. Officials said grain imports rose in 1986 because of a poor harvest and rising domestic demand, but remained below exports, which rose to 9.42 mln tonnes from 9.33 mln in 1985. "China is short of foreign exchange," the Shanghai official said. "We cannot rely on imports, even at current low world prices. Only if there is a major disaster will we become a major importer." A Japanese trader in Peking said Chinese grain imports would rise and exports fall this year because of the drought, low world prices and rising domestic demand for human and animal consumption. "At current prices, China loses yuan on every tonne of grain it exports, though it earns foreign exchange which it badly needs," the trader said. The People's Daily said last Saturday a serious drought is affecting 13.3 mln hectares of arable land, which will reduce the summer grain harvest from last year's level. The paper added that leaders in some areas were not paying enough attention to agriculture, especially grain, making it difficult to achieve the 1987 grain output target of 405 mln tonnes against 391 mln in 1986. "All areas must spare no effort to raise the autumn harvest area, especially of corn, sweet potatoes, paddy rice and high-yield cash crops," it said. It added factory production might have to be reduced to provide electricity for agriculture if it was needed to fight the drought. Since January, the press has devoted much attention to grain, stressing that growth in output is vital to China's economic and political stability and that prices paid to farmers are too low. Officials in east China have repeatedly said stable grain production is a key state policy and outlined the measures being taken in their areas to encourage output. The Shanghai official said that in one suburb, 10 pct of the pre-tax profits of factories are used to subsidise agriculture. He said rural industries in other suburbs also set aside money for grain and pay the salaries of some of the 70,000 workers available to help farmers. Chu Jinfeng, an official of Fengbing county outside Shanghai, said factory workers get 60 yuan a month and three years unpaid leave to grow grain and can keep the profits. Pan Huashan, an official of the agricultural department of Zhejiang Province, said rural industry also subsidises grain output in his province. "In addition, we are setting up grain production bases, raising the level of science and technology on the farms and improving the supply of raw materials, roads and other infrastructure," he said. The Shanghai official said rural residents who work in industry or commerce usually keep their land to farm in their spare time, or let other family members farm it. In some cases, they lease the land to grain farmers. The China Daily said last month that grain output should reach between 425 and 450 mln tonnes by 1990 and between 480 and 500 mln by 2000. It said growing grain should be made profitable. "The advantages the state promises grain growers actually yield tangible profits for them and are not siphoned off by intermediate agencies because of bureaucracy or corruption. Only this will boost enthusiasm," it said.  
SOUTHEAST CHINA CROPS SAVED BY HEAVY RAIN. The heaviest rains for seven months are believed to have saved more than one mln hectares of drought-threatened crops in southeast China, the official New China News Agency said. This week's rains have alleviated drought conditions in Guangdong Province, the agency said. China has warned that this year's harvest will be affected by drought in many areas.  
SOVIETS SAID TO SEE NEW FLOOR FOR GRAIN OUTPUT. The intensive technology concept for grain production has put a new floor under USSR grain production, the U.S. Agriculture Department's officer in Moscow said in a field report. The report, quoting a broadcast on Radio Moscow, said that due to intensive technology grain production in a "bad year" will not fall below 200 mln tonnes, and in a "good year" grain production could reach 250 mln tonnes. The U.S. Agriculture Department currently forecasts this year's USSR crop at 210.1 mln tonnes, and if realized this would be the third year since 1975 that the Soviet Union's grain harvest has exceeded 200.0 mln tonnes. The largest crop since 1975 was 237.4 mln tonnes harvested in 1978, according to USDA data.  
USDA OFFICIAL SEES 7-8 BILLION DLRS CERTIFICATES. There will be seven to eight billion dlrs of generic certificates on the market by the end of harvest, an Agriculture Department official said. The Commodity Credit Corp will "depend heavily" on certificates to relieve storage problems this year, Ralph Klopfenstein, Deputy Administrator for Commodity Operations, USDA, told participants at the National Grain and Feed Association's annual convention. Klopfenstein said that CCC will not be able to relocate grain in any significant amount this fall, so certificates will be used in various programs to relieve storage tightness. Klopfenstein said certificates meet the goal of allowing prices to go below loan levels and providing USDA with an inventory management tool.  
USDA ASKS TIGHT INSECT RULES FOR GRAIN SHIPMENTS. The U.S. Agriculture Department is proposing tighter federal standards setting allowable limits on insect infestations in grain shipments. The changes in the standards would include the following: -- Establishing equal tolerances for the number of live insects in shipments of food grains, feed grains and oilseeds. -- Revising the definition of "infested" to give equal value to all insects injurious to grain. -- Establishing lower levels of infestations. In 1988, the infested level would be set at three or more live insects per representative sample (about 100 grams), in 1990 two or more insects, and in 1992 the final infestattion level would be set at one or more live insects per representative sample. -- Revising the definition of sample grade by adding a limit of 10 live or dead insects per sample. -- Revising the definition of sample grade for wheat by adding a limit of 32 insect-damaged kernels per 100 grams of wheat. The department asked for public comments on the proposals by April 17.  
TRADE PROPOSES NEW EC GRAIN INTERVENTION RULES. The European Community (EC) cereals trade lobby organisation Coceral said it has written to EC Farm Commissioner Frans Andriessen to propose a new system for sales into intervention, which it claims could save the EC budget money. It proposes that applications for intervention be made through a certificate valid for execution three months later. If during the three months the trader found a market elsewhere, he could buy back the certificate on payment of a one pct premium. Coceral argues that this would restore the original function of intervention as a safety net and would end the present situation in which produce is often sold into intervention as a precaution.  
CHINA SAYS POSSIBLE GOOD HARVEST DESPITE DROUGHT. China's summer grain harvest may be good despite a serious drought because the State Council (cabinet) has spent one billion yuan on irrigation and other anti-drought work, a Hong Kong newspaper said. Wen Hui Bao said the drought, which has affected Shanxi, Hebei, Henan and Shandong the most, has eased with March rains in south China and March snowfall in the north and as some new irrigation projects have come into use. "If the drought does not worsen, there is hope for a bumper harvest," it quoted experts of the Ministry of Electric Power as saying. They gave no figures. The 1986 summer grain harvest was a record 93 mln tonnes, up from 92 mln in 1985, out of a total 1986 grain harvest of 391 mln. The 1987 target is 405 mln.  
PORTUGUESE GRAIN AGENCY BAN TO REMAIN - EC SOURCES. A ban by a Portuguese court on the state buying agency EPAC taking part in cereals import tenders open to private traders will remain unless it is reversed in Portugal or challenged in the European Court of Justice, European Commission sources said. They denied a statement yesterday by Portuguese Agriculture Minister Alvaro Barreto that the commission had accepted that EPAC should be eligible, saying it had taken no view in the matter. Under the terms of Portugal's accession to the European Community, a grain import monopoly held by EPAC is being reduced by 20 pct annually until all imports are liberalised in 1990. Lisbon's civil court decided in a preliminary ruling earlier this month that EPAC should not be allowed to take part, as it had done in the past, in tenders for the liberalised share of annual grain imports.  
NO PROOF OF MORE CHERNOBYL GRAIN DAMAGE-DIPLOMATS. Western agricultural attaches in Moscow said they had no evidence to substantiate rumours that last April's Chernobyl nuclear disaster had a worse effect on Soviet grain than first reported. Current Soviet interest in chartering ships to carry grain from the U.S. Helped prompt the rumours on world markets. But the diplomats said they had seen no reports in the state press and heard no comments from officials to substantiate them. The official media was initially slow in reporting the accident but, under Kremlin leader Mikhail Gorbachev's campaign for openness, gradually gave more and more details. Land around the nuclear plant was contaminated to varying degrees. Some is now being used to grow industrial crops instead of grain.  
EC MEMBER STATES COOL ON CEREAL PLANS. European Community (EC) member states have generally given a cool initial reaction to proposals by the European Commission for cereal price changes and related measures in the coming season, EC diplomats said. They said that in meetings of the EC Special Committee on Agriculture representatives of most member states had said the changes, taken together, would have too harsh an impact on farmers' incomes. Only Britain and the Netherlands had shown willingness to accept the commission's overall package, they said. As well as cuts of over two pct in common prices for most cereals, the commission proposes a limitation of intervention to the February to March period and reduced monthly increments in intervention prices. EC Farm Ministers will have a first discussion of the proposals at a meeting beginning next Monday.  
ILLINOIS CO-OP FUTURES DISSOLUTION VOTE SET. The shareholders of Illinois Cooperative Futures Co., the futures trading arm of many Midwest farm cooperatives for more than 25 years, will vote Wednesday on its possible dissolution. The directors of the company called a special meeting and recommended its dissolution last month, citing falling volume and increasing costs. Sources close to the organization told Reuters the pullout of Growmark, Inc., which holds more than 70 pct of the capital stock, led to the call for dissolution. The possible demise of the cooperative has set clearing houses scrambling for the trading business of the 85 regional and local cooperatives that comprise its membership. Ironically, it was Growmark, at that time a regional farm cooperative with major river terminal elevators, that founded Illinois Cooperative Futures on December 1, 1960. But Growmark became affiliated last year with Archer Daniels Midland of Decatur, Ill., and markets its grain through a joint subsidiary of the two companies, ADM/Growmark. With that relationship, Growmark no longer needs to trade futures through the cooperative, said Tom Mulligan, president of the co-op. Membership in the company, which Mulligan termed a cooperative of cooperatives, has declined from 99 in 1982. A notable loss was AgriIndustries of Iowa, which became affiliated with Cargill, Inc. Illinois Co-op's other members include such regional cooperatives as Indiana Grain, based in Indianapolis, Goldkist, of Atlanta, Ga., Midstates in Toledo, Ohio, Farmland Industries in Kansas City, Mo., Farmers Commodities, Des Moines, and Harvest States in Minneapolis. Some observors said the demise of Illinois Cooperative Futures Co. is a serious blow to the cooperative system. Instead of banding together, the individual cooperatives are forced to go their own ways, said the floor manager of one cash house at the Chicago Board of Trade. Such a move would destroy the cohesiveness that gives farm cooperatives an advantage in the market at a time that a few major commercial companies are growing dominant, he said. Don Hanes, vice president for communications with the National Council of Farm Cooperatives, said 5,600 cooperatives exist today, down from 6,700 five years ago. "The period we've gone through in the past five years has been quite a crunch," he said. "There's been a lot of consolidation in the marketing co-ops." One problem, he said, is the co-ops sell the grain to the major commercials for export, rather than exporting it themselves, losing potential profits. But exporting grain requires heavy investments, and the multi-million-dollar loss posted six years ago by Farmers Export Co., a co-op set up to export grains, served "to make folks gun-shy," Hanes said. Mulligan said he believes the dissolution, if it is approved, is a result of change in the futures industry rather than a change in U.S. agricultural economics. A grain dealer at one member co-op said the futures arm "was a convenience, something that saved us a little bit of money. (Its dissolution) will force us to change our way of doing business." "We're sorry to see the co-op go by the wayside," he said. "But there are lot of people out there to do business with. There are plenty of capable firms." Steven W. Cavanaugh, vice president for grain marketing with Indiana Grain, said he would prefer to trade futures through a Chicago-based cooperative. "In terms of clearing our business as a unit as opposed to individuals, there would be economic savings," he said but added, "The times change and with changing times, come different opinions of what businesses ought to be around." Cavanaugh said the possible demise of the futures arm had nothing to do with its profitability. "I would guarantee you that this company is not in trouble. It is a sound, healthy organization." In the year ended February 28, 1986, the Illinois Cooperative reported income of 10.2 mln dlrs and members' equity, or net worth, of 8.3 mln dlrs. The annual report for the most recent year has not been filed. Under the cooperative system, income from operations is returned as "patronage refunds" to the members. Income and refunds in the past five years have been declining. In the year ended February 28, 1982, the co-op reported income of 17.4 mln dlrs and patronage refunds of 17.0 mln dlrs. Patronage refunds in the year ended February 28, 1986, totalled 9.5 mln dlrs. "You're dealing with substantially lower volume," Mulligan said. "Lower volume translates into higher costs." According to the company's 1986 annual report, Growmark owns 90 pct of the preferred shares and four pct of the common shares of Illinois Cooperative Futures Co. Mulligan declined to speculate on how much of the capital Growmark is entitled to. He said he could not determine the figure unless the shareholders decide in favor of dissolution. Equity is distributed according to each member's trading volume and, as a result, changes from year to year. However, Mulligan said the company could continue to meet minimum capital requirements to trade futures even if Growmark pulled out.  
IWC ups Soviet grain 1986/87 import estimate three mln tonnes to 29 mln - official.  IWC ups Soviet grain 1986/87 import estimate three mln tonnes to 29 mln - official  
DUTCH GRAIN LEVY TEST CASE TO START IN APRIL. A large Dutch animal feed compounder will begin formal legal proceedings early next month as a test case on the way the EC grain co-responsibility levy is applied, a spokesman for Dutch grain and feed trade association, Het Comite, told Reuters. Het Comite has been co-ordinating national actions against alleged distortions caused by currency factors in the levy and, since December, has lodged more than 80 individual cases with the Business Appeal Court in The Hague. The basic complaint is that the levy does not take account of currency cross-rates of exchange and therefore compounders in countries with strong currencies may have to pay more in their own currency than is paid to them by producers in another country. Het Comite has obtained a temporary agreement that companies can pay the amount they receive toward the levy rather than paying a full guilder amount to the Dutch grain commodity board. The spokesman said Het Comite will provide financial and legal backing to the test case in the Business Administration Court in the Hague. Oral proceedings are to begin on April 10. The spokesman said Het Comite finally selected the company for the test case from among the 80 lodged "because the bill (the firm) received from the commodity board for payment of the levy contained significant currency distortions and involved grain from a wide variety of origins." The name of the company is not being made public. The Administration Court is not expected to make a final ruling on the case in the near future. The Het Comite spokesman said it was very likely it would refer questions to the Appeal Court in Luxembourg, and "as a result it could easily be another nine to 12 months before the matter is finally resolved." Meanwhile, the actions by Dutch animal feed compounders are putting pressure on the commodity board to urge the Dutch government to follow through on earlier statements and seek a complete review in Brussels of the way in which the levy is collected, the spokesman said. Het Comite, as a member of FEFAC, the association of European animal feed manufacturers, is also a party to actions protesting the whole levy in the Luxembourg appeal court.  
REPORT ON EXPORT MARKETS FOR U.S. GRAIN DELAYED. The U.S. Agriculture Department's report on Export Markets for U.S. Grain, scheudled for release today, has been delayed until Wednesday, April 1, a department spokeswoman said. No reason was given for the delay in releasing the monthly report.  
ECONOMIC SPOTLIGHT - CHINA MUST PRESERVE FARMLAND. "If we go on using up farmland as we have done since 1980, there will be none left in 20 years to grow grain on." Xu Jinfeng, a middle-aged official in Fengbang village on the edge of Shanghai, sums up the dilemma China faces as it tries to feed its more than one billion people and at the same time let them get richer by building factories and new homes. China has to feed one quarter of the world's population, but only one seventh of its land is arable. Sharp increases in farm output since 1979 turned China into a net grain exporter for the first time in 1985, and again in 1986. But the rapid industrialisation of the countryside which has occurred at the same time, has gobbled up arable land for factories and homes for peasants who can now afford them. Official figures show that China lost just under one pct of its arable land to other uses in 1985 and a slightly smaller amount last year. It gained 26 mln new mouths to feed during the two years. "We lost very little land prior to 1980 when the industrialisation began," official Xu said. "Since then, nearly all the families in the county have built new homes and many factories have gone up." "Last year we lost land to a new railway line," Xu said. But land losses in future should fall because nearly all families already have new houses, she added. The issue of land loss is a matter of major concern to the Peking leadership, which announced earlier this month that China will issue nationwide quotas for conversion of grain land for the first time this year. "The present situation of abusing, occupying unlawfully, wasting and destroying land and land resources is serious," said an article in the official press explaining the new measures. "It has resulted in great losses of cultivated farmland," it said. "China has a large population and its land resources are badly deficient." An official of the Shanghai city government said county authorities could approve conversion of only 0.3 hectares of arable land to other uses, while anything more than that must be approved by the city government. The Peking government faces another major obstacle in its efforts to ensure China's people get enough grain to eat. The prices the state pays to farmers for grain are too low, making it more profitable for them to grow other crops. To offset this, the state offers farmers cheap fertiliser and diesel oil and payment in advance for grain it contracts to buy. The state then sells the grain at subsidised prices to China's 200 mln city residents. Rural factories also subsidise grain output, paying farmers bonuses to grow it. Some officials argue that the simplest solution to the problem would be for the state to raise city grain prices. Chen Zuyuan, Communist Party secretary of a village in the eastern province of Zhejiang, said the government listened too much to the demands of "selfish city people" and could raise city grain prices without any problem. But the government has ruled out a price rise. "Raising the price of grain would directly conflict with the goal of social stability," said a China Daily editorial this month. The Shanghai official said prices must be reformed over the long term. "We must be very careful. We have a very large population which is used to price stability and will object to price rises," he said. "The problem is how to do it." The Shanghai official said a rise in grain prices might also affect the prices of hundreds of food products made with grain and consumed by city residents. In addition, the state faces the problem of inadequate investment by farmers in land and in grain in particular. The official press has reported that farmers fear farm policy may change and they are putting their new wealth into building graves, memorial halls for ancestors and homes. Under reforms introduced in the late 1970s, farmers sign contracts with the state requiring them to grow certain crops, but they have considerable freedom in how to use their land. "As the expiration date of the 15-year contract is almost at the halfway mark, farmers are beginning to worry about the future," the China Daily said in an editorial last month. Their anxieties stem from the fact that they are allowed to use the land but not own it. For most of the period of Communist rule, the land was organised into collectives where there was little room for individual initiative. "New measures are needed to reassure them of the consistency of government policies and make them interested in long-term investment," the newspaper said.  
CEREALS MCAS TO BE UNCHANGED NEXT WEEK. Monetary compensatory amounts, MCA's, will be unchanged for the week starting April 6, EC Commission officials said. Cereals MCA's are plus 2.4 points for West Germany and the Netherlands, minus two points for Denmark, minus eight points for France, minus nine for Ireland, minus 5.7 for Italy, minus 25.7 for Britain, minus 44.1 for Greece and minus 10.5 for Spain.  
USDA GRAIN INSPECTION ADVISORY COMMITTEE MEETING. The Federal Grain Inspection Service Advisory Committee will meet here Monday, April 13, the U.S. Agriculture Department said. Items on the agenda for the meeting, which is scheduled to begin at 0830 edt, are grain-quality issues, status of proposed regulations, financial matters and safety matters, the department said. The Federal Grain Inspection Service Advisory Committee is composed of 12 members representing the grain industry who provide advice to the administrator of the Federal Grain Inspection Service.  
JAPAN STUDY URGES FOREIGN ACCESS TO FARM MARKETS. Japan should increase foreign access to its farm products market, while encouraging further development of domestic agriculture, a government report said. The white paper on agriculture for the year ended March 31 said active participation in writing world farm trade rules at the next round of General Agreement on Tariffs and Trade (GATT) talks will help prepare Japan to improve access. Agriculture Ministry sources said the paper marked an easing in Japan's tough position on agricultural imports which stressed the need for strict controls on some products to maintain self-sufficiency in food. Japan now produces only 30 pct of its annual grain needs, down from 61 pct some 20 years ago, official figures show. The paper said Japanese agriculture has been slow to improve productivity and demand/supply imbalances. The relative shortage of farmland in Japan is mainly responsible for higher domestic prices, it said. The strong yen has meant lower input material prices but has also resulted in higher agricultural imports which has worsened working conditions among part-time farmers, the paper said. This could make it difficult to improve the industry's structure, the paper said. To solve these problems and to reduce farm product prices to more reasonable levels, Japan should try to restructure the the agricultural sector to improve productivity and make it self-supporting, it said.  
ADM GRAIN ELEVATOR EXPLODES IN BURLINGTON, IOWA. A grain elevator in Burlington, Iowa, exploded today, leaving five injured. The elevator, operated by Archer Daniels Midland Co. of Decatur, Ill., is a terminal elevator on the Mississippi River, Doug Snyder, assistant to the vice president said. The cause of the explosion and the extent of damage to the elevator was not immediatley known.  
U.S. GRAIN CARLOADINGS FALL IN WEEK. U.S. grain carloadings totaled 25,744 cars in the week ended March 28, down 4.3 pct from the previous week but 41.6 pct above the corresponding week a year ago, the Association of American Railroads reported. Grain mill product loadings in the week totalled 10,920 cars, up 0.1 pct from the previous week and 12.7 pct above the same week a year earlier, the association said.  
SOVIET GRAIN PRODUCTS MINISTRY CRITICISED. The Soviet Communist Party has criticised the country's Grain Products Ministry for failing to ensure proper grain storage, turning out poor quality bread and for unsatisfactory book keeping, Pravda said. The party daily said that losses in the industry owing to waste and theft amounted to 7.3 mln roubles over the last two and a half years. The situation was particularly bad in the Central Asian republic of Kazakhstan, which has been severely criticised since the ousting of its veteran leader Dinmukhamed Kunayev last December. Its new leader, Gennady Kolbin, has said that at times the grain-growing republic has performed so badly that it has been obliged to seek grain supplies from national reserves. Tass news agency announced yesterday that Grain Products Minister Grigory Zolotukhin, 75, was being retired and replaced by Alexander Budyka, a senior food industry official. Pravda added today that the crisis in the industry had been drawn to Zolotukhin's attention and two of his deputies reprimanded.  
U.S. GRAIN CERTS SAVE 50-100 MLN DLRS - AMSTUTZ. The use of generic commodity certificates, or "certs," for fiscal years 1986-88 will save the government 50 to 100 mln dlrs, Department of Agriculture Undersecretary Daniel Amstutz said. Speaking at a House agriculture subcommittee hearing on the use of the certificates, Amstutz said that the issuance of 8.5 billion dlrs of certificates during fiscal years 1986-88 could result in government outlays of up to 400 mln dlrs. However, the use of certificates preclude the need for 450 to 500 mln dlrs in storage and handling costs, resulting in net savings for the government of 50-100 mln dlrs, he said. Without the use of certificates, Amstutz said nearly the entire 1985 crop which had been put under loan would have been forfeited to the Commodity Credit Corporation, CCC. In addition, 260 mln bushels of grain that have been redeemed from CCC inventory through certificate exchanges would have remained in the goverment inventory, he said. When asked to comment on a recent study by the General Accounting Office that concluded certificates result in a net cost to the government, Amstutz said, "GAO underestimated the benefits and overstated the costs" of the certificate program. Amstutz said while certificates encourage more loan entries, they also encourage heavier loan redemptions rather than forfeitures. GAO underestimated this net loan activity, Amstutz said. "There is no question in the mind of the Department of Agriculture that these certificates have been very useful," Amstutz said. Immediate benefits of certificates include greater market liquidity, improved market price competitiveness, higher farm income, and improved debt situation and decreased carrying costs, he said. Certificates are an integral part of USDA's long-range market-oriented farm policy, he said. Amstutz told subcommittee Chairman Rep. Dan Glickman, D-Kans., that USDA is in the process of preparing an official response to the GAO study on certificates and will submit it to the subcommittee when completed.  
MORE U.S. GRAIN CERTIFICATES NEEDED, STUDY SAYS. More generic grain certificates should be released onto the market in order for the U.S. certificate program to have its full effect on commodities, according to a study by Sparks Commodities Inc. The Agriculture Department should make grain deficiency payments and paid land diversion payments in a two-third certificate, one-third cash ratio through fiscal year 1989, Carroll Brunthaver, president of Sparks Commodities, told a House agriculture subcommittee hearing on certificates. Thereafter, government payments should be issued in roughly a 50-50 split between cash and certificates, Brunthaver said. The Sparks study on certificates examined two possible scenarios through the 1990 growing season -- a "zero certificate case," where no certificate program was assumed, and an alternative case labeled "adequate certificate case" in which sufficient certificates would be released so that grain prices would not be artificially supported by market shortages due to acreage reduction programs or government holdings. The study showed that total grain use under the adequate certificate scenario would exceed the zero certificate scenario by 11.2 pct. Usage would be markedly more in 1989 and 1990, when grain usage under a certificate program was estimated to exceed the zero certificate case by 15 to 19 pct. For the five-year period examined, government expenditures under the adequate certificate case were 7.0 billion dlrs, or 7.5 pct less than under the zero certificate case. The Sparks study said that 5.1 billion dlrs, or 70 pct of those savings resulted from smaller government storage costs. The study also estimated that government grain stocks under the adequate certificate case would be 4.7 billion bushels below the zero certificate case at the end of the period examined. The Sparks study said that while certificates permit market prices to fall below loan levels, these lower prices increase commodity usage and reduce the net costs of certificates versus cash.  
USSR CROP WEATHER SUMMARY -- USDA/NOAA. Gradual warming continued in most regions of Western Soviet Union in the week ended April 4, the Joint Agricultural Weather Facility of the U.S Agriculture and Commerce Departments said. In its International Weather and Crop Summary, the agency said most of the region's precipitation fell as rain. The southern snow cover boundary continued to slowly retreat northward and eastward, it said. Moderate to deep snow cover the northern half of the Ukraine, northern North Caucasus, and the lower Volga, about one month later than usual, it said. The agency said average weekly temperatures were below normal in the southeast, near normal in the southwest and northeast, and above normal in the northwest. Winter grains remained dormant over the region, but warm weather promoted greening in crop areas adjacent to the Black Sea coast, it said.  
IOWA GRAIN ELEVATOR EXPLODES, BURNS. An explosion and fire today damaged a grain elevator in Bancroft, Iowa, destroying thousands of bushels of grain, authorities said. The pre-dawn explosion ripped the wooden elevator open, and a fire that followed continued burning at late morning but had been contained, according to a dispatcher at the Algona Police Department. No injuries were reported at the Lone Rock Coop facility. The dispatcher said the elevator was filled with corn, and a nearby drying building holding soybeans was on fire. The explosion was the second in four days in Iowa following the destruction of an Archer Daniels Midland elevator in Burlington last Friday.  
STOLTENBERG SEES MOVES TO STRENGTHEN PARIS ACCORD. West German Finance Minister Gerhard Stoltenberg said today's meetings of major industrial countries would look at ways of strengthening the Paris accord on stabilizing foreign exchange rates. Stoltenberg told journalists he saw no fundamental weakness of the February 22 agreement of the Group of Five countries and Canada to keep exchange rates near the then-current levels. But he declined to say what measures would be discussed ahead of a communique of the Group of Seven ministers later today. Stoltenberg and Bundesbank President Karl Otto Poehl said the importance of the Paris agreement, also known as the Louvre accord, had been underestimated. Stoltenberg said there is greater agreement now among major countries than six months ago, at the time of the annual meeting of the International Monetary Fund and World Bank, marked by sharp discord between the United States and its major trading partners. "There is no fundamental weakness of the Paris accord," he said. "We will be looking at ways of strengthening it, but I do not want to discuss that here. Stoltenberg said the Louvre agreement was working despite a "slight firming" of the yen against the dollar. And Poehl noted that the dollar/mark parity was unchanged since February 22 without the Bundesbank having had to sell marks to support the dollar. "The Louvre agreement has been honored by the market," he said. Poehl said West Germany had lived up to its side of the bargain in Paris by preparing the way for tax cuts to be accelerated as a way of stimulating growth. Poehl said, however, that Japan had not yet fulfilled its pledges for economic stimulation. "And we will have to see if the United States is able to do what they promised in Paris on reducing the budget deficit -- and get it through Congress," he added. Stoltenberg reiterated West German concern about a further fall in the dollar, noting that the mark was up 85 pct against the dollar and nearly 20 pct on a trade-weighted basis. "You cannot expect that to go unnoticed in an economy. And it is not just a German problem, it is a European problem," he said.  
TOP OFFICIALS ARRIVE AT TREASURY FOR G-5 TALKS. Top officials of leading industrial nations arrived at the U.S. Treasury main building to begin a meeting of the Group of Five. Officials seen arriving by Reuter correspondents included West German Finance Minister Gerhard Stoltenberg and Bundesbank President Karl Otto Poehl, French Finance Minister Edouard Balladur and his central banker Jacques de Larosiere. Also seen arriving were Japanese Finance Minister Kiichi Miyazawa and Japan's central bank governor Satoshi Sumita and British Chancellor of the Exchequer and central bank governor Robin Leigh Pemberton. There was no immediate sign of Italian or Canadian officials. Monetary sources have said a fully blown meeting of the Group of Seven is expected to begin around 3 p.m. local time (1900 gmt) and last at least until 6 p.m. (2200 gmt), when a communique is expected to be issued. Italian sources said Italian acting Finance Minister Giovanni Goria met Treasury Secretary James Baker last night. At those talks Baker apparently convinced Goria, who declined to attend the February meeting of the Group of Seven in Paris, that Italy would participate fully in any meaningful decisions.  
GROUP OF FIVE MEETING ENDS. A meeting of finance ministers and central bankers of the Group of Five ended after nearly three and a half hours. West German Finance Minister Gerhard Stoltenberg and British Chancellor of the Exchequer Nigel Lawson declined to comment on the meeting as they emerged from the U.S. Treasury. A European monetary official said the ministers of the Group of Seven countries would gather at about three p.m. local (1900 GMT) at the Treasury.  
INDUSTRIAL NATIONS RECONVENE FOR TALKS. Financial ministers and central bankers of leading industrial nations reconvened here this afternoon. Canadian Finance Minister Michael Wilson said on entering the meeting the ministers would review the Paris agreement. Asked if he was satisfied with West German and Japanese stimulus, Wilson replied, "They could do a little more." French Finance Minister Edouard Balladur, meanwhile, confirmed there would be a communique at the end of the meeting. Finance ministers and central bankers of Britain, FRance, Canada and West Germany were seen by Reuter correspondents returning to a Treasury building. Japanese officials and Bundesbank President Karl Otto Poehl did not appear to have left the building at the end of earlier Group of Five talks which broke up around 2 p.m. local time (1800 gmt). There was no sign, however, of the Italian delegation whose position was thrown into question this morning by the resignation of the Christian Democratic wing of Italy's Socialist-led government. European monetary officials said later that the Italian delegation was inside the building. This meant that a full blown meeting of the Group of Seven was in progress.  
SWISS TO LAUNCH NEW SERIES OF MONEY MARKET PAPER. The Swiss Federal Government will launch a new series of three month money market certificates totalling around 150 mln Swiss francs, the National Bank said. Subscriptions close April 14 and payment date is April 16. The last series of three month paper issued in March raised 147.3 mln francs at an issue price of 99.142 pct, giving an average annual yield of 3.501 pct.  
FINANCE MINISTERS AGREE ON NEED FOR STABILITY. Finance ministers from seven major industrialized nations agreed on the need to stabilize currencies at current levels but said more action was needed to reduce trade imbalances and sustain economic growth. In a communique issued after a four-hour meeting at the U.S. Treasury that ended last night, the ministers said the value of the dollar and other currencies was basically correct now, and they welcomed new measures planned by the Japanese to boost their economy. West German Finance Minister Gerhard Stoltenberg called it a "good meeting" and in brief remarks exchanged with reporters other ministers seemed pleased with its outcome. Shortly after the communique was issued and just as foreign exchange trading opened in Tokyo, the Bank of Japan intervened again to prevent the yen rising too quickly. The communique said, "The ministers and governors reaffirmed the commitment to the cooperative approach agreed at the recent Paris meeting. They agreed, however, that further actions will be essential to resist rising protectionist pressures, sustain global economic expansion and reduce trade imbalances." It welcomed the plans set this week by the Japan's ruling Liberal Democratic Party to stimulate its economy with what the communique termed "extraordinary and urgent measures" including an "unprecedented front-end loading of public works expenditures." The meeting of the so-called Group of Seven brought together ministers and central bank governors of the seven major industrial democracies, the United States, Japan, West Germany, France, Britain, Italy and Canada. The communique said the ministers reaffirmed the commitment on cooperation reached in a meeting on February 22 in Paris when they had agreed to stabilize foreign exchange rates at the then-current levels. In the weeks that followed, the dollar continued to fall against the Japanese yen despite massive dollar purchases by the Bank of Japan and other central banks and is now trading at around postwar lows. Japan has come under growing criticism from both the United States and European countries for its only modest efforts to open its markets to outside competition and to reduce its exports. The communique said Japan affirmed its intention to open domestic markets to foreign goods and services but did not elaborate. It said the officials "reaffirmed the view that around current levels their currencies are within ranges broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting."  
G-7 WANTS TO SHOW MARKETS ITS RESOLVE - MIYAZAWA. Japanese Finance Minister Kiichi Miyazawa said the Group of Seven (G-7) countries reaffirmed their Paris accord on stabilising currencies to convince the market of their resolve. At a news conference after today's G-7 meeting, Miyazawa said the ministers and central bank governors did not believe a totally new statement was needed. The speculative selling did not reflect economic fundamentals, and since the fundamentals had not changed only a reaffirmation of the goals of the Paris accord was needed, he said. He also noted that this test of the G-7 nations resolve had concentrated on the yen, while other currencies, especially the mark, had remained stable. Miyazawa said any change in economic conditions since the Paris accord was not worth being called fundamental. "As I said at a time of Louvre (agreement), the expression of 'current level' is rather vague idea," he said. The yen's movement in the past several weeks is within the range agreed in Paris in Febraury, he said. It was better to give a vague expression than pin-pointing a level, which could have an adverse impact on the market, Miyazawa said. Asked why only Japan was committed to fresh measures in the statement, he said Japan was exceptional among the seven because the yen appreciated against the dollar while other major currencies largely have been stable. He also said Japan's ruling Liberal Democratic Party has justed adoped a package to reflate the economy while other nations are not supposed to produce new measures in a short period since the Paris agreement. Miyazawa also said the U.S. sanctions against Japanese semiconductor products was not discussed through the G-7 meeting and did not affect the currency talks. The seven nations discussed the debt problems of developing countries and ways to proceed in line with the debt initiative outlined by U.S. Treasury Secretary James Baker 18 months ago.  
U.K. MONEY MARKET DEFICIT REVISED DOWNWARD. The Bank of England said it has revised its estimate of today's shortfall to 350 mln stg from 400 mln, before taking account of 103 mln stg morning assistance.  
U.K. MONEY MARKET DEFICIT REMOVED. The Bank of England said it has satisfied its revised estimate of today's shortfall in the money market, providing 261 mln stg assistance in afternoon operations. The Bank bought in band one, 60 mln stg bank bills at 9-7/8 pct and in band two 200 mln stg bank bills and one mln stg treasury bills at 9-13/16 pct. This brings the total help so far today to 364 mln stg, compared with its deficit estimate of 350 mln stg.  
LEBANESE POUND FALLS SHARPLY AGAINST DOLLAR. The Lebanese Pound fell sharply against the U.S. Dollar again today with dealers attributing the decline to continued political uncertainty. The pound closed at 118.25/118.75 against the dollar compared to yesterday's close of 115.60/115.80. "Political deadlock is reflected in the pound's position. There was more demand and less on offer in the market," one dealer told Reuters. The pound, which was at 18 to the dollar in January, 1986, has lost more than 30 pct of its international value over the past three months.  
GROUP OF 10 WELCOMES LATEST G-7 AGREEMENT. The Group of 10 developed nations issued a communique welcoming the reaffirmation of the Paris accord on currency stability by the Group of Seven leading industrial democracies yesterday. In the communique issued this morning, the G-10 said "prospects of member countries' economies would be improved by stability in the exchange rates of their currencies." The G-10 includes the group of seven - the United States, Canada, Britain, Japan, Italy, West Germany and France - plus Belgium, the Netherlands, Sweden and also Switzerland. Sources who attended the G-10 conference this morning said the reference to the latest G-7 agreement was especially added to the brief communique because currency stability will benefit all the G-10 members. The G-10 met briefly before the International Monetary Fund Interim Committee meeting scheduled for today. .  
LAWSON SEES NO CHANGE IN U.K. MONETARY POLICY. British Chancellor of the Exchequer Nigel Lawson said he saw no immediate implications for British monetary policy arising from the Group of Seven meeting yesterday. "Exchange rate stability is in the U.K.'s interest," he told journalists. Asked what it meant for U.K. monetary policy, he said, "No, I do not think there are any immediate implications."  
U.S. TREASURY'S BAKER SAYS RATE SHIFTS ORDERLY. Treasury Secretary James Baker said that changes in exchange rates have generally been orderly and have improved the prospects for a reduction in external imbalances to more sustainable levels. In remarks before the IMF's policy-making Interim Committee, Baker reiterated a Group of Seven statement last night that the substantial exchange rate changes since the Plaza agreement 18 months ago have "now brought currencies within ranges broadly consistent with economic fundamentals." Baker said, "These exchange rate shifts have generally been orderly, and have improved prospects for the reduction of external imbalances to more sustainable levels." As they are today, the trade and current account imbalances "simply are not sustainable," Baker told the ministers. He said that the Reagan administration was resisting "strong domestic pressure" for trade protection and was working closely with the U.S. Congress in crafting a trade bill. "While we cannot yet be sure of the outcome, we are doing what we can to ensure that the bill is not protectionist," he said. Baker also urged the International Monetary Fund's executive board to review possible modifications to the Fund's compensatory financing facility before the annual meeting this fall. "We should pay particular attention to the lack of continuing conditionality associated with the use of the CFF and to whether shortfalls in export earnings are indeed temporary," he said.  
FRANCE'S BALLADUR SAYS TARGET ZONE NOTION NEARER. French Finance Minister Edouard Balladur said that the financial community is closer to arriving at a system of target zones for currencies despite the fact that little is being said about them. Speaking with reporters at the semiannual meetings of the International Monetary Fund, Balladur said, "We are not very far from the notion of target zones, even if we don't say so." He told reporters that "our ideas are progressing," adding that the finance ministers have been talking about more cooperation on economic policies and on levels around which currencies should stabilize.  
TREASURY'S BAKER SAYS FLOATING EXCHANGE RATE SYSTEM NEEDS GREATER STABILITY.  TREASURY'S BAKER SAYS FLOATING EXCHANGE RATE SYSTEM NEEDS GREATER STABILITY  
TREASURY'S BAKER SAYS SYSTEM NEEDS STABILITY. Treasury Secretary James Baker said the floating exchange rate system has not been as effective as had been hoped in promoting stability and preventing imbalances from emerging in the global economy. In remarks before the afternoon session of the International Monetary Fund's Interim Committee, Baker said he was not suggesting that the system should be abandoned. "But I do suggest," he said, "that we need something to give it more stability and to keep it headed in the right direction when the wind shifts." He said that indicators can serve "as a kind of compass" but added that structural indicators can help focus attention on some policies. Baker, however, said the IMF "needs to move beyond macroeconomic indicators and find structural indicators that can help focus attention on some of the policies of specific relevance to the imbalances we face today." The Treasury Secretary said that indicators should be given a more prominent role in the annual economic reviews -- Article IV consultations -- that the Fund performs. Baker also told the policy making group that it was time for the IMF to adopt earlier recommendations making IMF surveillance more relevant to national policymakers and the public. "In particular, we urge increased publicity for IMF appraisals developed in Article IV consultations, the use of follow-up reports on country actions to implement IMF recommendations, and greater use of special consultation procedures," he said. Baker emphasized that indicators were a device "for moving beyond rhetoric to action." He said they provide "more structure to the system, and induce more discipline and peer pressure into the process of policy coordination." He said the Fund's procedures for surveillance need to be reviewed and updated to reflect the use of indicators. "This should be matter of priority for the executive board," he said. Baker also urged the Fund to develop alternative medium-term economic scenarios for countries that "can help us focus even more clearly on the most important imbalances, by identifying options for addressing them and analyzing the implications of these options." He said also that further work should be done on finding paths that lead toward possible medium-term objectives. "If we are to take effective remedial action when there are significant deviations from an intended course, then we must have more definitive ways of indentifying the right course for key variables," he said.  
U.K. MONEY MARKET DEFICIT FORECAST AT 400 MLN STG. The Bank of England said it forecast a shortage of around 400 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 1.085 billion stg. Partly offsetting these outflows, a fall in note circulation will add some 340 mln stg, exchequer transactions around 300 mln and bankers' balances above target about 50 mln.  
KENYA DEVALUES SHILLING BY 0.6 PCT AGAINST SDR. Kenya devalued the shilling by 0.6 pct against the special drawing right (SDR) in response to the decline of the dollar last last week, bankers said. The Central Bank of Kenya set the shilling at 20.7449 to the SDR compared with the 20.6226 rate in force since the last devaluation on March 31. The Kenyan shilling has lost 5.6 pct of its value against the SDR this year in a series of devaluations designed to keep the value of the dollar above 16 shillings.  
BANK OF JAPAN TO SELL 800 BILLION YEN IN BILLS. The Bank of Japan will sell 800 billion yen in deficit financing bills today through 51-day repurchase agreements maturing June 3 to help absorb a projected money market surplus, money traders said. The operation will raise the outstanding supply of the bills to a record 4,800 billion yen. The yield on the bills for sale to banks and securities houses from money houses will be 3.8999 pct compared with the two-month commercial bill discount rate today of 3.8750 pct and the two-month certificate of deposit rate of 4.13/00 pct. The traders estimated the surplus today at about 1,800 billion yen. They said it is mainly due to 1,300 billion yen of government tax allocations to local governments and public entities and to excessive banking system cash holdings due to continuous large central bank dollar purchases.  
U.K. MONEY MARKET GIVEN 75 MLN STG ASSISTANCE. The Bank of England said it had provided the money market with 75 mln stg help in the morning session. This compares with the Bank's estimate that the system would face a shortage of around 400 mln stg today. The central bank bought bank bills outright comprising two mln stg in band two at 9-13/16 pct, 15 mln stg in band three at 9-3/4 pct and 58 mln stg in band three at 9-11/16 pct.  
ZAMBIA'S KWACHA FALLS AT WEEKLY AUCTION. The Zambian kwacha fell at this week's foreign exchange auction to 18.75 kwacha to the dollar from last week's 16.95, the Bank of Zambia said. The rate was the lowest since the auctions resumed two weeks ago under a new two-tier exchange rate system worked out with the World Bank and International Monetary Fund. The Bank of Zambia said it received 370 bids, ranging from 13.00 to 20.75 kwacha, for the six mln dlrs on offer. One hundred and thirty-five bids were successful. A British High Commission spokesman said Britain would put eight mln stg into the auction at a rate of one mln a week as soon as Zambia reached a full agreement with the IMF. The money could be spent only on goods produced and supplied by British firms, excluding luxuries and defence equipment, the spokesman added.  
U.K. MONEY MARKET GIVEN FURTHER 68 MLN STG HELP. The Bank of England said it provided the market with a further 68 mln stg assistance this afternoon, bringing its total assistance on the day to 143 mln stg. Shortly before, the Bank said it had revised its estimate of the shortage up to 450 mln stg from the earlier forecast of 400 mln. During the afternoon, the bank bought 22 mln stg of band two bank bills at 9-13/16 pct and two mln stg of local authority bills plus 44 mln stg of bank bills in band four at 9-11/16 pct. These rates were in all cases unchanged from previous intervention levels.  
U.K. MONEY MARKET GIVEN LATE HELP OF 210 MLN STG. The Bank of England said it gave the market late assistance of around 210 mln stg, bringing its total help on the day to some 353 mln stg. This compares with the Bank's estimate of the liquidity shortage of around 450 mln stg, raised from its early forecast of 400 mln stg.  
FED EXPECTED TO SET THREE-DAY REPURCHASE PACTS. The Federal Reserve is expected to enter the U.S. Government securities market to add temporary reserves directly by arranging three-day System repurchase agreements, economists said. They said the Fed may add the reserves indirectly instead via a large round, two billion dlrs or more, of customer repurchase agreements. Federal funds, which averaged a high 6.35 pct on Friday, opened at 6-7/16 pct and traded between there and 6-1/2 pct.  
Bank of Japan intervening to support dollar against yen, dealers.  Bank of Japan intervening to support dollar against yen, dealers  
JAPAN'S LDP TO CALL FOR FLEXIBLE MONETARY POLICIES. Japan's ruling Liberal Democratic Party (LDP) will call for adequate and flexible management of the nation's monetary polices in its plan to expand domestic demand, a senior LDP official told Reuters. Junichiro Koizumi, the head of the LDP committee working out the plan, said the phrase should not be taken as implying an immediate cut in Japan's 2.5 pct discount rate. "The LDP generally believes that there is no need for a further discount rate cut at the moment," he said. But Koizumi said the LDP does not rule out a rate cut if necessary in the future. Bank of Japan Governor Satoshi Sumita told a press conference on Wednesday that the central bank does not have any intention of easing credit conditions.  
WHITE HOUSE SAYS U.S. MONETARY POLICY CORRECT. The White House, distancing itself from remarks by the administration's budget chief, said the Federal Reserve's current course of monetary policy was appropriate. "The administration feels that the current course of monetary policy is appropriate," White House spokesman Marlin Fitwater said. Fitzwater said the administration did not endorse remarks by White House budget chief James Miller, who said he was concerned the Federal Reserve might overreact to the decline in the value of the U.S. dollar by raising interest rates. More  
U.K. MONEY MARKET GIVEN 25 MLN STG LATE ASSISTANCE. The Bank of England said it provided the money market with late assistance of around 25 mln stg. This takes the Bank's total help today to some 137 mln stg and compares with its latest forecast of a 150 mln stg shortage.  
REAGAN SAYS U.S., ALLIES MUST HONOR ACCORDS ON EXCHANGE RATE STABILITY.  REAGAN SAYS U.S., ALLIES MUST HONOR ACCORDS ON EXCHANGE RATE STABILITY  
REAGAN URGES FULFILLMENT OF EXCHANGE ACCORDS. President Reagan, preparing to depart for the Venice economic summit on Wednesday, said the United States and its allies must fulfill agreements on exchange rate stability. "Economic policy decisions made last year in Tokyo, and at this year's meetings of Group of 7 Finance ministers in Paris and in Washington, cannot be ignored or forgotten," he said. "The commitments made at these meetings need to be translated into action," Reagan said in a pre-summit speech celebrating the 40th anniversary of the Marshall Plan.  
VENEZUELA TIGHTENS FOREIGN EXCHANGE RESTRICTIONS. Venezuela's central bank has ordered Venezuelan banks and exchange houses to cease foreign exchange operations with brokers based outside the country, according to a copy of a central bank telex made available to Reuters. The measure, confirmed by a brokerage firm here, has effectively cut off all foreign participation in Venezuela's volatile currency market. The telex, issued on May 19, was signed by Carlos Hernandez Delfino, manager of the bank's department of international operations. The telex said the restriction on business with foreign brokers is in line with an earlier measure prohibiting foreign exchange houses from selling dollars or other foreign currencies to anyone living outside Venezuela. In recent weeks the Venezuelan government has denied rumours that it intends to impose foreign exchange controls to prop up the weakening bolivar. But brokers said the central bank's move is seen as a de facto currency control. "It is definitely a control in the sense that there's no longer complete freedom to operate," one broker here said. "Gradually they're imposing restrictions and the direction is towards complete control," the broker said. The broker, who requested anonymity, said virtually all his Venezuelan customers had stopped doing business with him since the central bank issued the telex and followed it up with telephone calls. He said that before the restriction was imposed the volume of his firm's transactions with Venezuela was about 10 mln dlrs a day. "It was a frenetic market, it was really quite active," he said. The broker said he saw no logical explanation for the prohibition because his firm only acted act as an intermediary between Venezuelan brokers, exchange houses and banks. "We weren't buying dollars from Venezuelans, that's ridiculous," he said. "They've been on a rampage against foreigners." The broker noted that two months ago Venezuela's central bank quietly announced that banks doing foreign exchange business outside Venezuela would have to respect a new 200 pct reserve requirement. In February, the central bank also prohibited trading in bolivar futures, the broker said. "We used to have a forward market," he said. "For a small currency it was miraculous." He said the bolivar, which averaged 20.29 to the U.S. Dollar in 1986, would continue to slip from its current range of 28.35 to 28.50 because the central bank was rapidly running out of foreign reserves to support the currency on the free market.  
POEHL LOOKS SET FOR EIGHT MORE YEARS AT BUNDESBANK. For currency dealers Karl Otto Poehl is the scourge of speculators, for bankers he is the man who has played a key role in shaping the world's financial destiny for the last seven years, and for Germans he is the guardian of the mark. President of the powerful and independent West German central bank, the Bundesbank, Poehl is likely to have his contract renewed for another eight years when it expires at the end of this year, government officials say. (Index of economic spotlights, see page ECRA) But no official announcement has yet been made, raising eyebrows in West Germany's business community. The ebullient Poehl spent seven years in Bonn in top ministerial posts under the Social Democrats, now in opposition, before he moved to the Bundesbank. There has been speculation that Chancellor Helmut Kohl would try to replace Poehl with a man closer to his own Christian Democrats. But officials noted that Poehl has worked closely and successfully with Finance Minister Gerhard Stoltenberg since Kohl's government took office in 1982. Poehl, the most senior central banker apart from Paul Volcker of the United States, enjoys a strong international reputation which it would take a newcomer years to build up. Given these circumstances, Kohl will probably overlook Poehl's past as an adviser to former Social Democrat Chancellor Willy Brandt, and top aide to Helmut Schmidt when he was Finance Minister, bankers said. It was Schmidt who, as Chancellor, appointed Poehl to his present job in 1980. In recent months, with the mark's strong rise against the dollar, Poehl has made exchange rates the central concern of the Bundesbank's council, a highly conservative institution which has doggedly pursued monetary policies to prevent inflation catching hold. Older Germans can remember two bouts of galloping inflation this century. But with consumer prices falling for much of 1986, and inflation negligible so far this year, Poehl thinks it is safe to relax the monetary reins a little and concentrate on the dangers to the German economy of a bloated exchange rate. "I am of the opinion that efforts to stabilise the dollar/mark rate have reached a high priority, also for the Bundesbank, because a further massive revaluation of the mark would endanger the economy in West Germany," he told business journalists in Frankfurt recently. Ute Geipel, head of research at Citibank AG, says that Poehl's reappointment would guarantee flexible monetary policy. "Poehl's policy has always been a policy which does not focus so rigidly on domestic factors, but also on the external economy," she said. An economist at a German bank, who declined to be identified, said "If Poehl is confirmed in his post, it will certainly be a plus for the pragmatic course which is not so rigidly oriented towards money supply." One of Poehl's great struggles recently has been to persuade the United States to stop "talking down" the dollar. For Poehl, the significance of the February Louvre Accord was that the United States agreed to join efforts to stabilise currencies. The Louvre Accord was greeted with scepticism by currency dealers who said they would soon put it to the test. But in fact the dollar has been relatively stable since the pact. "This is because the markets know - or perhaps because they don't know - what the central banks can do," Poehl says of intervention in currency markets which can quickly turn rates round, making a speculator's position worthless. Poehl was born in 1929 and worked as a financial journalist in the 1960s before starting his ministerial career. A relaxed sun-tanned figure who enjoys cracking jokes over a glass of beer, he is hardly a stereotype central banker. He is also a keen sportsman who likes to watch football and play golf. Poehl says currency market intervention cannot substitute for correct economic policies if exchange rates are imbalanced. "But you can achieve an enormous effect with a small amount if you strike at the right moment," he said. Bundesbank dealers are very professional and skilled. "They've burnt the fingers of many people," he said. And unlike the speculators, Poehl notes, the Bundesbank dealers usually make a profit.  
TAIWAN CURBS INFLOWS OF FOREIGN EXCHANGE. Taiwan's central bank announced that as from today the overseas foreign exchange borrowings of local and foreign banks would be frozen at the level they reached at the end of May. The central bank's statement added that the measure would be effective until the end of July. Bankers said the measure is designed to curb the inflow of foreign exchange and slow the growth of money supply. They added that the move, which sparked a record single day plunge of the local stock market, would limit their ability to lend foreign exchange to importers and exporters. Foreign exchange borrowings by local and foreign banks reached almost 12 billion U.S. Dlrs by the end of April, according to official statistics. Last week the central bank said that from today it would reduce its purchase of forward U.S. Dollars from banks to 40 pct from 90 pct of the value of the contract. It said the move was needed because of "distortions" in the foreign exchange market. Exporters, nervous about the appreciating Taiwan dollar, have been heavily selling forward U.S. Dollars on the interbank market to avoid exchange rate losses. Official figures show that forward U.S. Dollar sales in May reached a record of almost six billion U.S. Dlrs against 5.9 billion in April. All Taiwan's foreign exchange earnings must be converted into local dollars, boosting money supply at a time of booming exports. Money supply rose a seasonally adjusted 51.86 pct in the year to end-April, raising fears of higher inflation. In March the central bank clamped tight restrictions on remittances of foreign exchange by companies and individuals to Taiwan in a move to curb inflows of speculative money. Economists and bankers estimate that the rising value of the local dollar has attracted about ten billion U.S. Dlrs of speculative money into Taiwan since early last year. It has flowed in mainly from Hong Kong, Japan and the U.S.. Since September 1985 the Taiwan dollar has risen by about 22 pct against the U.S. Dollar. Bankers said the government's efforts to stabilise the foreign exchange market were a prelude to lifting all curbs on capital outflows. The central bank has said the controls will be dropped by the end of July or early August. Foreign exchange dealers said today's announcement caused jitters in the market with foreign and local banks making heavy purchases of U.S. Dollars. They said the central bank sold about 30 mln U.S. Dlrs. Taiwan's stock market plunged a record 75.53 points to close at 1,803.08.  
KUWAITI DINAR RATES FIRM, AID WINDOW OPEN. Interest rates on Kuwaiti dinar deposits held firm in scattered trading despite a Central Bank decision to revive limited funding lines, dealers said. The Central Bank, which last Tuesday shut a daily aid window through which it lent funds of up to one year, reopened the facility for three month money, which was available at seven pct, they said. It offered one month funds at seven pct through swap facilities, dealers said. Today's Central Bank action, combined with sales of dollars by some banks, helped ease a recent credit squeeze engineered by the monetary authority to stem a rush for the U.S. Currency arising from attractive U.S. Interest rates and Gulf tension, dealers said. However, as one dealer noted: "The market is still unsettled." Overnight funds, bid at 20 pct at the outset of business, traded up to 30 pct before easing as liquidity dragged offers down to 10 pct by the close. Tomorrow-next, for which buy/sell quotes started at 30, 20 pct, ended at 14, eight. Spot-next was indicated at 8-1/2, seven after opening bids of 10. Dealers quoted one-week at eight, seven against an early 9-1/2, 7-1/2. One month rates were at the same level after trade at eight then 8-1/2. Dealers quoted three months at seven, 6-3/4 pct and six-month to one year funds at seven, six pct. They reported offshore offers of overnight at 10, tomorrow-next at eight and one year at 6-1/2 pct towards the close. The Central Bank fixed its dinar exchange rate steady at 0.27933/67 to the dollar, against yesterday's 0.27939/73. The spot dinar was 0.27930/40.  
LAWSON SAYS LOUVRE CURRENCY ACCORD SATISFACTORY. The Louvre agreement by the Group of Seven finance ministers and central bankers to stabilise currencies has worked well and needs no fundamental strengthening at the economic summit in Venice on June 8-10, U.K. Chancellor of the Exchequer Nigel Lawson said. Previewing the summit, which he expected would not produce any major new economic initiatives, Lawson told reporters work remained to be done on improving the conditions for lasting world economic growth.üside measures to boost growth, he said.  "I think it is possible that there may be scope for a further reduction in interest rates in Germany," he added, but stressed that he had had no indication that such a move was likely. He made no mention of Japanese interest rates. Lawson said the U.S. Should embark on "a gradual reduction of its fiscal deficits over the next two or three years." He said the February 22 Louvre accord had produced "satisfactory exchange rate stability," in part thanks to heavy coordinated intervention of Group of Seven central banks, and he was "content" with sterling's exchange rate. Pointing to the record 4.8 billion stg rise in U.K. May currency reserves announced today he said, "we have been playing a very full part ourselves ... We have been intervening to a very much greater extent than we had done hitherto." Lawson said there was a risk that the Louvre agreement may falter if member states did not implement the macro-economic commitments underlying the accord. "Certainly it would be more difficult to maintain exchange rate stability if countries are seen not to implement their commitments in Paris ... In this respect." He said the U.S. Budget deficit was "very important." Noting the 6,000 billion yen economic package announced by Japanese Prime Minister Yasuhiro Nakasone last week Lawson said, "what is really needed in Japan is an increase in merchandise imports. Supply side measures are critical." "There is a specific range of consumer and agricultural goods where they have an extremely restrictive regime which is wholly unjustified," he said. Lawson doubted that Tokyo's partners would indulge in "Japan bashing" at the summit especially after the economic stimulation package and the announcement of Nakasone's plans to increase Japanese development aid over the next three years. Japan's more flexible stance on Tokyo stock exchange membership would also help deflect criticism, he said. He said he thought West Germany would instead come under pressure at the summit to adopt similar stimulation measures to jack up faltering economic growth. In this respect Lawson said he hoped Bonn would bring forward to January 1988 part of its agreed package of tax cuts scheduled for 1990. He also called on Bonn to push ahead with the privatisation of German national industries. On debt, Lawson said he expected a three point British plan to alleviate the burden of the poorest sub-saharan countries to make progress in Venice. The plan, involving concessional rescheduling of sovereign debt in the Paris Club, was first proposed at the IMF and World Bank meetings in Washington earlier this year. Lawson said he would seek "to consolidate political backing for the plan at the Venice summit" and hoped the programme would be finalised at the Autumn meetings of the IMF and World Bank. He welcomed the recent moves by Citicorp and Chase Manhattan to increase sharply their Third World debt provisions. "First, it is a blow for realism. Second, because the market response has shown that banks have much less to fear from this sort of move than they felt before Citicorp," he said. U.K. Banks should follow Bank of England recommendations, strengthening their balance sheets and making more provisions. "They have done it to some extent, they need to do it more," Lawson said, adding it was up to the banks themselves to determine the appropriate size of provisions. He also said the dismantling of farm subsidies would be discussed at the summit. "There is a consensus, which we have to push further."  
LAWSON CALLS INTERVENTION PROOF OF STABILITY GOAL. The scale of foreign exchange intervention the Bank of England has carried out recently is clear proof of Britain's determination to stabilise exchange rates as agreed between the Group of Seven industrialised countries in Paris in February, Chancellor of the Exchequer Nigel Lawson said. Saying he was "content" with sterling's current value, Lawson told reporters he wanted "to maintain the exchange rate stability we have all signed up for." He declined to say if he favoured a rise or a fall from present sterling levels. May currency reserves, out today, showed a record 4.8 billion stg rise, pointing to massive currency intervention. In April, reserves rose a hefty 2.9 billion stg. Pointing to the reserves data, Lawson said, "We have been playing a very full part ourselves" in meeting our commitments toward exchange rate stability as agreed in Paris. "We wish to see it (stability) continuing," he added. Asked which techniques were available to preserve stability, Lawson said both central bank intervention and interest rate changes could be used to tackle "the market pressures there are from time to time." "Interest rate stability is not an objective in that sense...Rates have to be moved up and down at times," he added. Lawson said he expected intervention to be "sterilised" by draining excess sterling liquidity from the market through new issues of government securities and foreign currency sales, when the market allowed. This would limit the inflationary impact of intervention, he said. "Sterilisation will be dictated by market tactics...Not necessarily in the month in which intervention occurs," Lawson said. "I am confident that we can sterilise on this scale."  
NEAR TERM STRENGTH SEEN FOR CURRENCY FUTURES. Currency futures are likely to move higher following the sharp rally today after President Reagan announced that Paul Volcker would not accept a third term as Federal Reserve Chairman and that Alan Greenspan was nominated as his replacement, currency analysts said. Contrary to predictions before the Volcker resignation, analysts are calling for higher currency futures prices between now and the June 8 Venice economic summit. In particular, uncertainty about Greenspan's attitude to the dollar could undermine sentiment toward the U.S. currency, analysts said. Greenspan said today that the dollar appeared to be nearing a bottom, but the market will bear in mind his remarks in Chicago last week that the dollar's recent move upward was a technical reaction and that it would trade significantly lower, analysts said.  "Disappointment of European central bankers over the appointment will be used as an opportunity to sell the dollar lower," said Manufacturers Hanover Futures vice president Carol Mackoff. "The international community will not like this appointment," as it suggests the possibility that the U.S. budget deficit is too much of a burden on monetary policy and that Volcker was unable to get the commitment he sought to reduce the deficit, added Merrill Lynch Economics analyst David Horner. Furthermore, "that Greenspan was not named two months ago suggests that he was not the Administration's first choice -- and that the status of his appointment was as a bridesmaid," Horner said. A declining dollar scenario with higher currency futures prior to and throughout the Venice meetings would be mitigated only by concrete action as opposed to "jawboning" at the G-7 summit, he said. But G-7 finance ministers, judged by recent statements, may be at an impasse, analysts said. Japan and West Germany today reiterated that neither planned further interest rate cuts, despite pressure from the U.S. to do so, Mackoff said. The U.S., on the other hand, has not cut its budget deficit as Japan and West Germany have urged, she said. Should G-7 members force a U.S. commitment to cut its budget deficit in the next two years, a further decline in the dollar could be forestalled, Horner said. However, "the impact from Venice will be nothing if nothing changes," Horner said. Smith Barney, Harris Upham and Co. analyst Craig Sloane said European currencies will likely move to the higher end of their 1987 ranges after today's sharp advance. For the next two weeks, Sloan calls for September yen futures to advance toward the 0.007200 area. He said September marks could close in on 0.5700 as an upside target, while Swiss francs could climb to a range between 0.6900 and 0.6950.  
FED'S SEGER SAYS FOREIGN EXCHANGE MARKETS SHOWING SIGNS. OF STABILITY  FED'S SEGER SAYS FOREIGN EXCHANGE MARKETS SHOWING SIGNS OF STABILITY  
FED GOVERNOR SEGER SEES CURRENCY STABILITY. Federal Reserve Board Governor Martha Seger said there were signs of helpful stability in foreign exchange markets in recent weeks. "I think we are beginning to see more calm in those markets," Seger told reporters after a speech to the U.S. League of Savings Institutions. "I think it is very healthy when you can get into a period of stability," she said. She said market forces have a major influence on exchange rates and said she did not know the right value for the dollar against the Yen or the Mark. Seger told the Savings and Loan executives that she was concerned about financial markets' absorption with exchange rate influences. "I am concerned that we have gotten so nervous," about exchange rates, Seger said. She said the Fed takes into account additional factors in determining monetary policy than the value of the dollar against other currencies. On the economy, Seger called the latest figures in gross national product a modest upward revision.  
U.S. BUSINESS LOANS FELL 896 MLN DLRS. Business loans on the books of major U.S. banks, excluding acceptances, fell 896 mln dlrs to 275.61 billion in the week ended June 10, the Federal Reserve Board said. The Fed said that business loans including acceptances fell 546 mln dlrs to 278.12 billion dlrs.  
VENEZUELA PROBES ALLEGED FOREIGN EXCHANGE FRAUD. Banking authorities and police are investigating an alleged fraud by the second largest trading house in the Caracas free foreign exchange market, Finance Minister Manuel Azpurua told reporters. The Superintendency of Banks and the Technical and Judicial Police have both begun probes of Cambio la Guiara, Azpurua said on Friday night. Police said the owners of the firm, Mario Muggia and his brother Luigi Muggia, have left Venezuela. Cambio la Guiara operated in part on the "parallel market" in which traders buy and sell dollars among themselves. The Venezuelan central bank on June 17 suspended the licences of all 21 foreign exchange operators in the parallel market, blaming their speculation for the constant rise in the value of the U.S. Dollar here. Juan Domingo Cordero, vice-president of the Caracas Stock Exchange and the owner of a foreign exchange trading house, said on Friday he had begun legal action against Cambio la Guiara for issuing him four checks without funds for a total amount of almost one mln dlrs. The Cambio la Guiara exchange house had operated in Venezuela for more than 20 years.  
MIYAZAWA SAYS G-7 STILL SUPPORTS LOUVRE ACCORD. Japanese Finance Minister Kiichi Miyazawa said the Group of Seven (G-7) nations still support the Louvre Accord to stabilise currencies. He also told a news conference following a cabinet meeting that the Group of Five (G-5) and G-7 do not have any plans to meet for talks. The Finance Minister further said that overseas stock market plunges will not lead to a freefall in the Tokyo stock market. "There is no special worry about the stock market in Tokyo," he added. Miyazawa said the Tokyo stock market should not be gravely affected by the downturns of markets in New York and London because there is a clear sign of an economic recovery in Japan and stability of exchange rates. Asked if the U.S. Had contacted Japan after the stock market plunge in New York, Miyazawa said there was not any contact.  
Miyazawa says Baker's remarks were aimed at just reaffirming Louvre agreement.  Miyazawa says Baker's remarks were aimed at just reaffirming Louvre agreement  
BAKER REMARKS AIMED AT CONFIRMING ACCORD-MIYAZAWA. Japan's Finance Minister Kiichi Miyazawa said that remarks by U.S. Treasury Secretary James Baker on Sunday that some nations were not abiding by the spirit of the Louvre Accord were just aimed at reaffirming that agreement. The agreement, to cooperate in stabilising currencies, was reached in Paris in February this year. The finance minister made the remark at a news conference which followed a morning cabinet meeting.  
IF DOLLAR FOLLOWS WALL STREET JAPANESE WILL DIVEST. If the dollar goes the way of Wall Street, Japanese will finally move out of dollar investments in a serious way, Japan investment managers say. The Japanese, the dominant foreign investors in U.S. Dollar securities, have already sold U.S. Equities. But "if the dollar falls steeply, which did not happen yesterday, Japanese investors will definitely try to withdraw significant funds from U.S. Shares," said Akira Kawakami, deputy manager of Nomura Investment Trust and Management Co Ltd's international investment department. An unstable, lower dollar would also affect Japanese investment in U.S. Bonds. "Japan-U.S. Interest rate differentials, which currently look wide enough, mean nothing in the absence of dollar stability," said Kawakami. U.S. Bonds could benefit due to a gloomy economic picture following the estimated huge losses in stocks by major U.S. Institutional and individual investors, he said. The effect should be to rule out any U.S. Interest rate rise. But most Japanese investors in U.S. Bonds are still wiating to see if the dollar really is stable, he said. The dollar was holding firm at above 142 yen on Tuesday morning. "Although Japanese investors sold huge amounts of stocks in New York yesterday, most are still looking for chances to lighten their U.S. Stock inventories," Hiromitsu Sunada, manager of Meiji Mutual Life Insurance Co's international investment department said. Their sales helped send Wall Street stocks down 508 points to 1,738, the market's biggest percentage drop since 1914. "Investment in U.S. Stocks and bonds is difficult, considering the dangers," said Katsuhiko Okiyama, deputy general manager and chief adviser of Yamaichi Securities Co Ltd's fixed income securities marketing group. Japanese investment at home could start to pick up once markets have stopped reacting to Wall Street, the managers said. The Tokyo yen bond market is likely to stabilise in one or two weeks, which is what investors have been waiting for. The bottom for yen bonds should be around a 6.3 pct yield for the 5.1 pct 89th bond, they said. "The basic background which has supported the stocks and bonds markets has not changed," said Norio Okutsu, assistant general manager of Nikko Securities' bond department. "But new outflows of funds to the U.S. Will be decreasing."  However, this was already evident three months ago, he said.  
Sumita welcomes U.S.-West German joint confirmation of Louvre accord.  Sumita welcomes U.S.-West German joint confirmation of Louvre accord  
SUMITA WELCOMES U.S.-JAPAN AGREEMENT ON LOUVRE. Bank of Japan governor Satoshi Sumita said he welcomed Monday's U.S. And West German joint confirmation of their commitment to the Louvre accord. Sumita said in a statement that world stockmarkets were excessively concerned about the economic future. The Bank of Japan will continue to adhere to a system of policy coordination based upon the Louvre accord of February, he said. The accord called for stability in foreign exchange rates. Exchange rates generally are regaining stability and the economies of industrialised nations are heading for a steady recovery, he said.  
NEW ZEALAND WILL CONTINUE FIRM MONETARY POLICY. The Reserve Bank of New Zealand said there was no evidence to suggest the fall in share prices had affected financial stability and it would maintain its firm monetary policy. Governor Spencer Russell said in a statement the central bank did not accept arguments that the battle against inflation should now take a low second priority after the sharemarket's plunge. Russell said the bank had two statutory responsibilities -- to implement the government's monetary policy to bring down inflation, and to ensure the financial sector's stability. "Unless the bank is directed otherwise, the firm monetary policy will continue because it is very much in the national interest that it do so," he said. "And there is yet no evidence available to the bank to suggest that the fall in share prices has affected the stability of the financial sector." The Barclays share index fell a record 504.75 points to 2,925,26 on Tuesday, a decline of 14.7 pct.  
Stoltenberg says meeting with Baker underscored monetary cooperation.  Stoltenberg says meeting with Baker underscored monetary cooperation  
STOLTENBERG SAYS BAKER MEETING UNDERSCORES ACCORD. West German Finance minister Gerhard Stoltenberg said the meeting on Monday with U.S. Treasury Secretary James Baker underscored the determination of the U.S. And West Germany to continue close cooperation to stabilise foreign exchange rates. Stoltenberg told a news conference "The statement released yesterday (Monday) after the private meeting .... Emphasized our determination to continue the close economic cooperation regarding foreign exchange stabilization and monetary policy." Stoltenberg said that he, Baker and Bundesbank President Karl Otto Poehl had a very constructive discussion and had all reached a positive evaluation of the Louvre accord during their meeting on Monday. Stoltenberg said initial contacts with several European counterparts showed that they shared this view. "We expect the declaration of our unified position to have a positive effect," he said. He noted that the dollar firmed again in late U.S. Trading after the outcome of the Baker meeting was published.  
LOUVRE ACCORD VITAL TO W.GERMANY - STOLTENBERG. West German Finance Minister Gerhard Stoltenberg said the Louvre accord was vital to West Germany. Stoltenberg told a news conference "Given West Germany's unusually high dependence on world trade and exports, it is vital for West Germany ... To continue its constructive contribution to trusting (international) cooperation on the basis of the Louvre accord." Some monetary analysts have speculated that inflation-conscious Bundesbank vice president Helmut Schlesinger may have been leading the central bank to a course of tighter monetary policy. Stoltenberg is due to attend a routine Bundesbank meeting on Thursday in West Berlin. He declined to forecast what, if any, policy decisions the Bundesbank might take.  
Stoltenberg does not rule out central bank intervention to stabilize currencies.  Stoltenberg does not rule out central bank intervention to stabilize currencies  
Further marked dollar fall would burden U.S. Trade deficit -Stoltenberg.  Further marked dollar fall would burden U.S. Trade deficit -Stoltenberg  
Stoltenberg declines comment on possible changed targets for currencies.  Stoltenberg declines comment on possible changed targets for currencies  
STOLTENBERG DECLINES COMMENT ON CURRENCY ZONES. West German Finance Minister Gerhard Stoltenberg declined to comment on whether unpublished target zones for currencies agreed at last February's Louvre accord had been changed as a result of the meeting on Monday with U.S. Treasury Secretary James Baker. He was asked about target zones at a news conference in Bonn. Stoltenberg referred to a statement released after Monday's meeting, which said continuing cooperation was aimed at promoting currency stability at current levels. This was the same formula used in the text of the Louvre accord, he noted.  
STOLTENBERG DOES NOT RULE OUT INTERVENTION. West German Finance Minister Gerhard Stoltenberg said he could not rule out the possibility of central bank intervention to support currencies. Asked at a news conference whether central banks were prepared to intervene to defend currencies, he said "We cannot rule out the use of any instrument which leads to foreign currency stability." However, he added that in the end, it was market forces which prevailed.  
LOUVRE REAFFIRMATION NOT ENOUGH - U.K. ANALYSTS. U.S. And West German reaffirmation of support for the Louvre Accord cannot cure the fundamental problems bedevilling the world economy which lie behind the current collapse in stock markets, London economists said. "There's going to have to be some acknowledgement that the dollar is going to be allowed to slip," said Richard Jeffrey of Hoare Govett. "If not, there is going to be continued fear that when pressure emerges on the dollar, the Fed will be forced to tighten. This throws up the economic abyss of recession in the U.S. With obvious knock on effects on the rest of the world." But some economists added that Wall Street's crash, which dragged other major markets down with it, may help curb the very problems that sparked the turmoil - namely world inflation fears and the massive and persistent U.S. Trade deficits. "If there is a benefit from a 23 pct fall in Wall Street ...It's some sort of resistance to inflation worldwide," said Geoffrey Dennis of brokers James Capel, echoing comments from other London and Tokyo analysts. Lower personal wealth from lower stock prices and fears of further falls should dampen credit growth, curbing inflationary pressures and import demand in the U.S., They say. Such considerations may be helping bond markets resist the equity crash, according to Mike Osborne of Kleinwort Grieveson. "It would be suicidal for any government in the context of what happened in the last couple of days to jack up their interest rates," he added. Stocks surged after news Chemical Bank cut its prime lending rate half a point to 9.25 pct Tuesday and U.S. Fed chairman Alan Greenspan pledged support for the financial system. The news eroded the most immediate fears that the stock collapse would spill over into the economy, via a banking crisis for example, thus precipitating recession. It also helped the dollar rally sharply, to a high of 1.8200 marks from a European low of 1.7880. But economists said today's whiplash moves do not have long term significance and that markets should try to keep the underlying fundamentals in mind. "The United States has been able to live on borrowed time. If the effect of this (crash) is to produce slower economic growth not recession...It contains good news (and) provides a more realistic assessment of the U.S. Economy," said Capel's Dennis. But he added that markets are still very much in danger. "The liquidity doesn't disappear...All it's doing is disappearing from the equity markets," Dennis noted. David Morrison of Goldman Sachs International said world market turbulence will be exacerbated if the Group of Seven (G-7) leading western nations confirms a base for the dollar, as implied by West German Finance Minister Gerhard Stoltenberg's remarks that intervention to support currencies is still on. Last week's dollar fall was partly triggered by expectations that the Germans were more worried about the money supply impact of such intervention than maintaining currency stability. But rigid adherence to dollar ranges would be bad, said Morrison. "The Louvre Accord is fundamentally misconceived. To stabilise the dollar at too high a level is wrong," he said.  
Poehl says chances for exchange rate stability are good.  Poehl says chances for exchange rate stability are good  
BALLADUR HAS HAD CONTACT WITH G-7 MINISTERS. French Finance Minister Edouard Balladur has been in contact with several Finance Ministers from the Group of Seven leading industrial countries, in particular West German Finance Minister Gerhard Stoltenberg, to discuss the crisis on world markets, Finance Ministry sources said. They did not say whether the contacts had led to concerted action on the markets or merely an exchange of views. But they added that French ministry officials were continuing the contacts to exchange views on market performance.  
POEHL SEES GOOD CHANCES FOR CURRENCY STABILITY. Bundesbank president Karl Otto Poehl said there were good chances for exchange rate stability. "The chances for exchange rate stability are good," he told reporters.  
LAWSON SAYS U.S.-WEST GERMAN ROW WAS UNNECESSARY. U.K. Chancellor of the Exchequer Nigel Lawson said the recent dispute between the United States and West Germany over economic policy was responsible for much financial turmoil and that it should never have happened. He said in a television interview the dispute had fanned fears of a breakdown in the cooperation which is so important between finance ministers of the major nations. He said the dispute was a row which should not have happened and agreed that much of the blame lay with U.S. Treasury Secretary James Baker who had publicly criticised West Germany for having raised its key interest rates.  
REAGAN SAYS U.S. COMMITTED TO LOUVRE ACCORD. President Reagan said the United States remains committed to the Louvre accord in which the seven major industrial nations agreed to stabilize currency exchange rates. "The United States remains committed to the Louvre agreement," Reagan said in a statement following a meeting with his top economic advisers. Reagan said the United States, Japan and West Germany had all reaffirmed their commitment to coordinate economic policies. Reagan said Japanese Prime Minister-designate Noboru Takeshita said in a telephone conversation Tuesday morning that "his (Takeshita's) top priority was to maintain stable economic relations with the United States." Reagan noted that Treasury Secretary James Baker met with West German financial officials and reaffirmed their commitment to the Louvre agreement. They "reaffirmed our agreement to coordinate economic policies to provide for non-inflationary growth and stable exchange rates," Reagan said.  
Miyazawa says G-7 still strongly supports Louvre Accord.  Miyazawa says G-7 still strongly supports Louvre Accord  
LAWSON WELCOMES REAFFIRMATION OF LOUVRE ACCORD. U.K. Chancellor of the Exchequer Nigel Lawson welcomed on Monday the reaffirmation by the U.S. And West Germany of the Louvre accord aimed at stabilising currencies. His office said Lawson had welcomed the outcome of a meeting between U.S. Treasury Secretary James Baker, Bundesbank President Karl Otto Poehl, and West German Finance Minister Gerhard Stoltenberg in Frankfurt. After the meeting, a Bonn finance ministry spokesman quoted Stoltenberg as saying he was confident that foreign currencies could be stabilised at around current levels. The meeting came after Baker criticised West Germany for increasing key interest rates, saying they were not in line with last February's Louvre accord.  
BONN CONFIDENT OF MAINTAINING CURRENCY STABILITY. U.S. Treasury Secretary James Baker met West German Finance Minister Gerhard Stoltenberg and Bundesbank President Karl Otto Poehl in Frankfurt on Monday, a Bonn Finance Ministry spokesman said. After the meeting the spokesman quoted Stoltenberg as saying he was confident that foreign currencies could be stabilised at around current levels. The meeting came after Baker criticised West Germany for increasing short-term money market interest rates. He had said the rise was not in line with the spirit of the Louvre accord aimed at stabilizing the U.S. dollar last February. The meeting had been arranged last week, the spokesman said. Baker, Stoltenberg and Poehl had agreed to pursue the policies agreed under the Louvre pact with reference to currency stability and monetary policy. Earlier on Monday the Bundesbnak injected liquidity into the West German money market in a move which money market dealers interpreted as an attempt by the West German monetary authority to curb interest rate rises. The spokesman described Monday's talks, which he called private, as very positive.  
DELORS CALLS FOR G-7 MEETING. European Community Commission President Jacques Delors called for a swift convening of a meeting of the G-7 countries following the instability in today's trading on world money and stock markets. He told a press conference here: "G-7 should meet discreetly and quickly." Delors said if the dollar were to fall further against the mark to levels around 1.60, the European Monetary System would undergo a "test by fire." Delors said the current problems in the markets had been caused by excessive growth in financial trading, excessive deregulation and the failure of the fundamentals of the world economy to adapt themselves quickly enough to changing circumstances. He said it was "profoundly unjust" to blame it on recent increases in West Germany.  
U.S. TREASURY'S BAKER MEETS WEST GERMAN MINISTER. U.S. Treasury Secretary James Baker met West German Finance Minister Gerhard Stoltenberg and Bundesbank President Karl Otto Poehl today in West Germany and agreed to support the Louvre pact, the Treasury Department said. The Treasury described the meeting as "a very positive, private meeting in Frankfurt, West Germany which had been agreed upon last week. "The parties agreed to continue economic cooperation under the Louvre agreement and its flexible application including cooperation on exchange rate stability and monetary policies," the Treasury said. The Treasury said Baker and Stoltenberg "are consulting with their G-7 colleagues and are confident that this will enable them to foster exchange rate stability around current levels." The Louvre pact is an agreement between the Group of Seven leading industrial countries including the United States and West Germany to promote currency stability. Baker was scheduled to visit Scandinavia and Belgium this week and the department earlier refused to release details of his travel itinerary, citing security considerations.  
TREASURY'S BAKER MET WEST GERMANY'S STOLTENBERG TODAY, AGREED TO SUPPORT LOUVRE PACT.  TREASURY'S BAKER MET WEST GERMANY'S STOLTENBERG TODAY, AGREED TO SUPPORT LOUVRE PACT  
German Finance Ministry confident of maintaining currency stability at around current levels - spokesman.  German Finance Ministry confident of maintaining currency stability at around current levels - spokesman  
German Finance Ministry confident of maintaining currency stability at around current levels - spokesman.  German Finance Ministry confident of maintaining currency stability at around current levels - spokesman  
GERMAN BANKER CALLS FOR SPECIAL MONETARY MEETING. Finance ministers from major industrial nations should hold a special meeting to deal with the U.S. Dollar's sharp decline, Helmut Geiger, president of the West German savings bank association, said. Geiger told Reuters: "Finance ministers should meet soon to take confidence-building measures to limit the damage caused by the dollar's fall." Separately, Geiger told Bild newspaper in an interview released ahead of publication on Tuesday that the lower dollar, which had been artificially talked down by U.S. officials, would damage West German exports and cost jobs.  
BALLADUR URGES G-7 TO RESPECT LOUVRE ACCORD. French Finance Minister Edouard Balladur said the Group of Seven (G-7) industrial countries should respect pledges on monetary policy made in the February Louvre accord on currency stability. "We have to strengthen the cooperation between the seven major industrial countries and remind ourselves of the pledges we made at the Louvre," he told journalists. "They were not simply pledges to maintain currency stability, but also to conduct a certain type of economic and monetary policy," he added.  
FED'S JOHNSON SAYS LOUVRE ACCORD STILL VITAL. Federal Reserve Board Vice Chairman Manuel Johnson said the Louvre Accord is still healthy, but said the United States and West Germany must work out differences over their respective roles in fulfilling the accord. "The Louvre Accord has worked very well in terms of stabilizing exchange rates," he said in response to a question during an American Stock Exchange conference here. He said exchange rates have been stable so far in 1987 as a result of the accord.  
BALLADUR URGES G-7 TO RESPECT LOUVRE ACCORD. French Finance Minister Edouard Balladur said the Group of Seven (G-7) industrial countries should respect pledges on monetary policy made in the February Louvre accord on currency stability. "We have to strengthen the cooperation between the seven major industrial countries and remind ourselves of the pledges we made at the Louvre," he told journalists. "They were not simply pledges to maintain currency stability, but also to conduct a certain type of economic and monetary policy," he added. Balladur's comments came after U.S. Treasury Secretary James Baker said on Sunday that the U.S. Would have to re-examine the Louvre accords in the light of the rise in West German short-term interest rates. Balladur was one of the main architects of the Louvre accord and has invested considerable political capital in defending them.  
FED'S JOHNSON SAYS LOUVRE ACCORD ALIVE, BUT CITES U.S.-GERMAN DIFFERENCES.  FED'S JOHNSON SAYS LOUVRE ACCORD ALIVE, BUT CITES U.S.-GERMAN DIFFERENCES  
Balladur urges G-7 to respect pledges on monetary policy in Louvre accord.  Balladur urges G-7 to respect pledges on monetary policy in Louvre accord  
G-7 SEEN FIGHTING TO KEEP CURRENCY PACT. International monetary officials will rush to paper over the deep cracks that have appeared in the Louvre accord on currency stability to prevent a dollar free-fall and to calm turmoil in world capital markets, economists and currency traders said. "I don't think the Louvre is dead because if it breaks up in an acrimonious way, the potential outcome is a rout of the dollar, higher interest rates and collapsing stock markets. It's in the Group of Seven's interest to calm things down," said Douglas Madison, corporate trader at BankAmerica Corp.  In a weekend television interview, U.S. Treasury secretary James Baker sharply criticised a recent rise in West German money market rates and said the eight month-old Louvre pact to foster exchange rate stability needs to be reviewed. His comments rocked the currency markets and helped send the already-fragile U.S. and overseas stock markets into a tailspin. The dollar lost more than two pfennigs in the U.S. to about 1.7740/50 marks and about one yen to 141.25/35 yen. The Dow Jones Industrial Average slumped more than 200 points at one stage and U.S. Treasury bonds dropped about 1-3/4 points.  
TRANSATLANTIC ROW IMPERILS LOUVRE ACCORD-DEALERS. The Louvre accord on currency stability, which has maintained an uneasy calm in currency markets since last February, appeared in serious danger today as a transatlantic dispute over West German interest rates came to the boil, foreign exchange dealers said. But as the dollar slid against the mark and world stock and bond markets plunged, officials in the major industrial countries played down the dispute as a bilateral problem between the United States and West Germany and insisted that the currency pact was still alive. U.S. Treasury Secretary James Baker sparked the market fears when he attacked the rise in West German short-term interest rates. "That's not in keeping with the spirit of what we agreed to as recently as earlier this month in Washington," Baker said in a U.S. Television interview on Sunday. He was referring to the meetings of Finance Ministers from the Group of Seven (G7) leading industrial nations which reaffirmed the pact. Under the Louvre Accord West Germany and Japan, who both have large trade surpluses, pledged to boost their economic growth to take in more exports from the U.S., While the U.S. Agreed to stop talking the dollar down. However, Baker said on Saturday that while the Louvre agreement was still operative, the West German interest rate move would force the U.S. To re-examine the accord. "The foreign exchange market has been told by Baker that he's going to hammer Germany ... He has just declared all bets are off in terms of currency cooperation," Chris Johns, currency analyst at UBS-Phillips and Drew in London said. But a Bank of Japan official took a much more sanguine view, telling Reuters that "the exchange market is apparently reacting too much, and anyone who sold the dollar on the Baker comment will regret it later on." French Finance Minister Edouard Balladur, who hosted the Louvre meeting, was the only one of the G7 Finance Ministers to respond directly to Baker's remarks. He called for "a faithful and firm adherence by all the major industrial countries to the Louvre accords -- in both their letter and spirit." Neither the West German Finance Ministry nor the British Treasury commented on the row. But a Japanese Finance Ministry official said that despite U.S. Frustration over higher interest rates abroad, "this does not represent its readiness to scrap the basic framework of the Louvre Accord." In Frankfurt F. Wilhelm Christians, joint chief executive of West Germany's largest bank, Deutsche Bank, said that following recent meetings with Baker, he believed that the U.S. Was still committed to the accord. In a move which the market interpreted as a possible gesture of reconciliation, the Bundesbank added short-term liquidity to the West German money market at 3.80 pct on Monday, down from the 3.85 pct level at which it injected medium-term liquidity last week. The Bank of France also stepped into the French money market to hold down rates, injecting short-term liquidity at 7-3/4 pct after rates rose close to eight pct.  
STOLTENBERG ASSUMES COOPERATION WILL CONTINUE. The West German government assumes that the commitment to international monetary cooperation which was renewed in Washington last month will continue, a Finance Ministry spokesman quoted Finance Minister Gerhard Stoltenberg as saying. Stoltenberg's statement was a reaction to criticism of rises in West German interest rates voiced by U.S. Treasury Secretary James Baker over the weekend.  
Stoltenberg says he assumes monetary cooperation will continue.  Stoltenberg says he assumes monetary cooperation will continue  
WEST GERMANY STILL COMMITTED TO LOUVRE ACCORD. West German government sources said Bonn remained committed to the Louvre Accord to stabilise currencies, which was struck by leading western democracies in Paris last February. Over the weekend, U.S. Treasury Secretary James Baker criticised recent rises in West German short-term interest rates and said such developments were not in the spirit of the Louvre pact. He said the agreement may have to be re-examined. The sources said the West German interest rate rises had to be seen in the context of interest rate developments worldwide.  
FED SEEN ADDING RESERVES VIA SYSTEM REPOS. The Federal Reserve is expected to enter the government securities market to supply reserves to the banking system via system repurchase agreements, economists said. Most economists said the Fed would execute three-day system repurchases to meet a substantial need to add reserves in the current maintenance period, although some said a more aggressive add via overnight system repos was possible. Federal funds opened at 7-5/8 pct and remained at that level late this morning, compared with an average effective rate of 7.55 pct Friday.  
DEUTSCHE BANK CHIEF SAYS LOUVRE PACT STILL INTACT. Deutsche Bank AG joint chief executive Friedrich Wilhelm Christians said he believed the Louvre accord on currency stability was still intact. Christians told a news conference he met U.S. Treasury Secretary James Baker in the last two weeks, after short term German interest rates had risen twice. "I am sure that with 1.7720 marks the dollar is still within the Louvre agreement. I do not see that the accord has been terminated," Christians said. He was responding to questions about comments by Baker, who said the Louvre accord was still operative but criticised rises in West German interest rates.  
BALLADUR INSISTS ON MAINTENANCE OF LOUVRE ACCORDS. French Finance Minister Edouard Balladur issued a firm call for the continued faithful application of the Louvre accords on currency stability by all major industrial countries. Balladur, responding to weekend remarks by U.S. Treasury Secretary James Baker that the U.S. Would take another look at the accords, said "I firmly desire a faithfull and firm adherence by all the major industrial countries to the Louvre accords -- in both their letter and spirit." On Sunday, Baker said last week's rise in short-term West German interest rates was not in keeping with the accords.  The Louvre accords, agreed in Paris last February, called for stability among the major currencies after a prolonged dollar slide. The accords were reaffirmed by the Group of Seven Finance Ministers in Washington last month. But Baker said at the weekend that the West German rate rise was "not in keeping with the spirit of what we agreed to." "What I'm really saying is that they should not expect us to simply sit back here and accept increased tightening on their part on the assumption that somehow we are going to follow them," he added.  
BONN MINISTRY HAS NO COMMENT ON BAKER REMARKS. The West German Finance Ministry declined to comment on weekend criticism by U.S. Treasury Secretary James Baker of recent West German interest rate increases. Baker said the U.S. Would re-examine the February Louvre Accord to stabilise currencies reached by leading industrial democracies. The rise in West Germany short term interest rates was not in the spirit of an agreement by these nations in Washington, which reaffirmed the Louvre pact, he said. A Finance Ministry spokesman, asked for an official ministry reaction to Baker's remarks, said he could make no comment.  
BANKS EXTEND TRADING HALT IN LEBANESE POUND. Lebanon's Bankers Association said it extended its suspension of trading in the Lebanese pound for two more working days to study ways to stem the currency's collapse. The Central Bank did not post the rate of the pound to the dollar and other currencies on Monday. The pound closed on Thursday at 407.00/412.00 to the dollar compared with Wednesday's close of 384.00/386.00. Association sources told Reuters Friday's suspension of trading for two working days was continued on Monday for two more days so as to study proposals to reinforce the pound. The Association, which comprises 106 commercial banks in east and west Beirut, halted trading on Friday in a chaotic market after the pound crashed to four record lows in the week. The pound, hit by the inability of Lebanon's religiously and ideologically divided government to end 12 years of civil war, has lost more than 80 pct of its international value this year.  
BALLADUR INSISTS ON MAINTENANCE OF LOUVRE ACCORDS. French Finance Minister Edouard Balladur issued a firm call for the continued faithful application of the Louvre accords on currency stability by all major industrial countries. Balladur, responding to weekend remarks by U.S. Treasury Secretary James Baker that the U.S. Would take another look at the accords, said "I firmly desire a faithfull and firm adherence by all the major industrial countries to the Louvre accords -- in both their letter and spirit." On Sunday, Baker said last week's rise in short-term West German interest rates was not in keeping with the accords. The Louvre accords, agreed in Paris last February, called for stability among the major currencies after a prolonged dollar slide. The accords were reaffirmed by the Group of Seven Finance Ministers in Washington last month. But Baker said at the weekend that the West German rate rise was "not in keeping with the spirit of what we agreed to." "What I'm really saying is that they should not expect us to simply sit back here and accept increased tightening on their part on the assumption that somehow we are going to follow them," he added.  
ASIAN EXPORTERS FEAR DAMAGE FROM U.S.-JAPAN RIFT. Mounting trade friction between the U.S. And Japan has raised fears among many of Asia's exporting nations that the row could inflict far-reaching economic damage, businessmen and officials said. They told Reuter correspondents in Asian capitals a U.S. Move against Japan might boost protectionist sentiment in the U.S. And lead to curbs on American imports of their products. But some exporters said that while the conflict would hurt them in the long-run, in the short-term Tokyo's loss might be their gain. The U.S. Has said it will impose 300 mln dlrs of tariffs on imports of Japanese electronics goods on April 17, in retaliation for Japan's alleged failure to stick to a pact not to sell semiconductors on world markets at below cost. Unofficial Japanese estimates put the impact of the tariffs at 10 billion dlrs and spokesmen for major electronics firms said they would virtually halt exports of products hit by the new taxes. "We wouldn't be able to do business," said a spokesman for leading Japanese electronics firm Matsushita Electric Industrial Co Ltd <MC.T>. "If the tariffs remain in place for any length of time beyond a few months it will mean the complete erosion of exports (of goods subject to tariffs) to the U.S.," said Tom Murtha, a stock analyst at the Tokyo office of broker <James Capel and Co>. In Taiwan, businessmen and officials are also worried. "We are aware of the seriousness of the U.S. Threat against Japan because it serves as a warning to us," said a senior Taiwanese trade official who asked not to be named. Taiwan had a trade trade surplus of 15.6 billion dlrs last year, 95 pct of it with the U.S. The surplus helped swell Taiwan's foreign exchange reserves to 53 billion dlrs, among the world's largest. "We must quickly open our markets, remove trade barriers and cut import tariffs to allow imports of U.S. Products, if we want to defuse problems from possible U.S. Retaliation," said Paul Sheen, chairman of textile exporters <Taiwan Safe Group>. A senior official of South Korea's trade promotion association said the trade dispute between the U.S. And Japan might also lead to pressure on South Korea, whose chief exports are similar to those of Japan. Last year South Korea had a trade surplus of 7.1 billion dlrs with the U.S., Up from 4.9 billion dlrs in 1985. In Malaysia, trade officers and businessmen said tough curbs against Japan might allow hard-hit producers of semiconductors in third countries to expand their sales to the U.S. In Hong Kong, where newspapers have alleged Japan has been selling below-cost semiconductors, some electronics manufacturers share that view. But other businessmen said such a short-term commercial advantage would be outweighed by further U.S. Pressure to block imports. "That is a very short-term view," said Lawrence Mills, director-general of the Federation of Hong Kong Industry. "If the whole purpose is to prevent imports, one day it will be extended to other sources. Much more serious for Hong Kong is the disadvantage of action restraining trade," he said. The U.S. Last year was Hong Kong's biggest export market, accounting for over 30 pct of domestically produced exports. The Australian government is awaiting the outcome of trade talks between the U.S. And Japan with interest and concern, Industry Minister John Button said in Canberra last Friday. "This kind of deterioration in trade relations between two countries which are major trading partners of ours is a very serious matter," Button said. He said Australia's concerns centred on coal and beef, Australia's two largest exports to Japan and also significant U.S. Exports to that country. Meanwhile U.S.-Japanese diplomatic manoeuvres to solve the trade stand-off continue. Japan's ruling Liberal Democratic Party yesterday outlined a package of economic measures to boost the Japanese economy. The measures proposed include a large supplementary budget and record public works spending in the first half of the financial year. They also call for stepped-up spending as an emergency measure to stimulate the economy despite Prime Minister Yasuhiro Nakasone's avowed fiscal reform program. Deputy U.S. Trade Representative Michael Smith and Makoto Kuroda, Japan's deputy minister of International Trade and Industry (MITI), are due to meet in Washington this week in an effort to end the dispute.  
JAPAN GIVEN LITTLE HOPE OF AVOIDING U.S. SANCTIONS. A top U.S. Official said Japan has little chance of convincing the U.S. To drop threatened trade sanctions, despite the efforts of a Japanese team that left for Washington today. Michael Armacost, Under Secretary of State for Political Affairs, was asked at a press conference whether Japan's moves to boost its domestic economy and open its markets could persuade the U.S. Not to impose tariffs on Japanese imports said, and replied: "...It is probably too early for the figures to demonstrate that the situation has turned around and to permit the result you have described." Armacost said the U.S. Hopes Japan will take steps to lift its domestic economy and reduce dependence on exports, remove barriers to imports and settle outstanding trade issues. "There are obvious problems at the moment in the trade area, but we do not wish those problems to divert attention from important areas of cooperation that continue to exist on security and political issues," he said. "The question is whether through cooperative actions between our governments we can reduce the (trade) imbalance or whether Congress takes action to reduce it through protectionist legislation," he said.  
JAPANESE OFFICIAL TAKES DATA TO MICROCHIP TALKS. Ministry of International Trade and Industry (MITI) Vice Minister Makoto Kuroda leaves for Washington today with data he hopes will refute U.S. Charges Japan has violated a pact on microchip trade. A three-man Japanese trade team is already in Washington laying the groundwork for talks between Kuroda and Deputy U.S. Trade Representative Michael Smith aimed at persuading the U.S. Not to impose tariffs on certain Japanese products. But Kuroda said he is taking no new proposals. "I have nothing in my briefcase except an explanation of the current situation," Kuroda told the daily newspaper Asahi Shimbun. Kuroda said the U.S. Decision was based on incorrect data and an exaggerated sense of MITI's power to control market forces. "The U.S. Has excessive expectations. To stabilise supply-demand relations which have been disrupted by excess inventories since 1985 will take some time," he said. Kuroda also laid part of the blame for low U.S. Chip sales in Japan on a lack of effort by American firms here. He said if he fails in talks tomorrow and Friday to forestall sanctions, he will seek further talks with U.S. Trade Representative Clayton Yeutter. U.S. Officials said this week's talks are unlikely to delay imposition of tariffs.  
JAPAN GIVEN LITTLE HOPE OF AVOIDING U.S. SANCTIONS. A top U.S. Official said Japan has little chance of persuading the U.S. to drop threatened trade sanctions, despite the efforts of a Japanese team that left for Washington today. Michael Armacost, Under Secretary of State for Political Affairs, was asked at a press conference whether Japan's moves to boost its domestic economy and open its markets could persuade the U.S. Not to impose tariffs on Japanese imports said, and replied: "...It is probably too early for the figures to demonstrate that the situation has turned around and to permit the result you have described." Armacost said the U.S. Hopes Japan will take steps to lift its domestic economy and reduce dependence on exports, remove barriers to imports and settle outstanding trade issues. "There are obvious problems at the moment in the trade area, but we do not wish those problems to divert attention from important areas of cooperation that continue to exist on security and political issues," he said. "The question is whether through cooperative actions between our governments we can reduce the (trade) imbalance or whether Congress takes action to reduce it through protectionist legislation," he said.  
JAPAN IN LAST-DITCH EFFORT TO AVERT TARIFFS. Senior Japanese officials tomorrow open talks with American trade negotiators in a last-ditch effort to avert new high U.S. tariffs to be imposed on a wide variety of Japanese electronic exports. Makoto Kuroda, vice minister of Japan's Ministry of International Trade and Industry (MITI), is to hold two days of meetings with the Deputy U.S. Trade Representative, Michael Smith, and the Under Secretary of Commerce, Bruce Smart. The new tariffs, to go into effect on April 17, are in retaliation for Japan's failure to adhere to an agreement to end dumping semiconductors in world markets at below cost and to open its home market to U.S. semiconductor shipments. They are to be imposed on goods which use semiconductors, including television and audio equipment and computers. Both U.S. and Japanese officials have said there was little likelihood the talks would do anything to avert the 100 pct duties on 300 mln dlrs worth of Japanese shipments. President Reagan announced the planned tariffs on March 27 after he said that close monitoring of the July 1986 U.S.-Japanese semiconductor pact convinced U.S. officials that Japan was not honoring the agreement. In making the annoucement, Reagan said "I am committed to the full enforcement of our trade agreements designed to provide American industry with free and fair trade." Trade analysts said his move was aimed as much at Japan's semiconductor trade practices, which are said to have injured the U.S. semiconductor industry, as Congress, which has complained about presidential timidity on trade issues. Congressional Democrats have pledged to enact aggressive trade laws to counter what they contend has been Reagan's inaction to redress the growing U.S. trade deficit, which last year reached 169.8 billion dlrs. About one-third of the deficit was with Japan. Reagan said there were recent signs Japan was beginning to adhere to the pact and that was why he was not terminating it. Kuroda said on leaving Tokyo today he had no new proposals but did have an explanation of the semiconductor situation. He told the daily newspaper Ashai Shimbun that Reagan's decision was based on inaccurate data and an exaggerated sense of MITI's power to control Japanese traders. "The United States has excessive expectations.," he said. To stabilize supply-demand relations which have been disrupted by excess inventories since 1985 will take some time." He also said that U.S. firms had not been aggressive enough in trying to sell in the Japanese market.  
WHITE HOUSE STANDING FIRM ON JAPANESE SANCTIONS. Presidential spokesman Marlin Fitzwater said U.S. trade sanctions against Japan were likely take effect on April 17 in spite of a "full court press" by Japanese officials to avoid them. "All indications are they will take effect," he said. "I would say Japan is applying the full court press ... They certainly are putting both feet forward in terms of explaining their position," Fitzwater told reporters. He noted high level meetings on the trade dispute are underway here but said, "I don't think there's anything I can report and I don't believe there's been any official movement."  
WHITE HOUSE SAYS JAPANESE TARRIFFS LIKELY. The White House said high U.S. Tariffs on Japanese electronic goods would likely be imposed as scheduled on April 17, despite an all-out effort by Japan to avoid them. Presidential spokesman Marlin Fitzwater made the remark one day before U.S. And Japanese officials are to meet under the emergency provisions of a July 1986 semiconductor pact to discuss trade and the punitive tariffs. Fitzwater said: "I would say Japan is applying the full-court press...They certainly are putting both feet forward in terms of explaining their position." But he added that "all indications are they (the tariffs) will take effect."  
DEFICIT CUTS SEEN UNABLE TO CURE TRADE DEFICIT. Financial analysts say they are pleased with congressional moves to trim next year's federal budget deficit but believe the actions will do little to help improve the U.S. trade deficit or buoy the economy. The House of Representatives is expected to vote tomorrow to approve a trillion-dollar budget blueprint for the coming fiscal year that reduces the deficit by 38 billion dlrs. Similarly, the Senate Budget Committee has approved a plan that would cut federal red ink by about 37 billion dlrs next year. "In terms of the economy, 37-38 billion dlrs is infinitesimal, so cuts of this magnitude will have little impact on the economy and the trade deficit," said Stanley Collander, a Touche Ross federal budget policy analyst. "At best, it will have a small positive effect," Collander said in an interview. Federal Reserve Board Chairman Paul Volcker has repeatedly told Congress that cutting federal red ink would go a long way to help reduce the massive trade deficit and also help ease some of the downward pressure on the value of the dollar. The U.S. government has attempted to remedy the trade imbalance by driving down the value of the dollar. But Volcker has warned that a further fall in the dollar's value is fraught with danger. Such a decline, he has said, could refuel inflation as imported goods become more expensive and chase away foreign capital needed to finance the federal budget deficit. In addition, in February, U.S. officials meeting with other major industrialized nations in Paris agreed that the value of the dollar had dropped enough and that world exchange rates should be stabilized at around current levels. As part of that agreement, Japan and West Germany agreed to take steps to stimulate their economies and the United States agreed to cut its budget deficit. The alternative to driving down the dollar any further as a way to deal with the trade deficit, Volcker said recently, is to reduce U.S. consumption, particularly federal spending. "If you don't deal with the budget deficit, everything else you do is going to be counterproductive," Volcker said in recent testimony before the Senate Banking Committee. Volcker also said he would prefer to further tighten the government's purse strings than have the Fed tighten the credit supply if action was needed to fight inflationary pressures or to assure the continued flow of foreign capital into the United States. Analysts say that Fed tightening now could choke off the current modest economic expansion and threaten a recession. Kemper Financial Services economist John Silvia stressed that any deficit reduction was better than none. But he said the size of the cuts under consideration were not enough to give the Federal Reserve Board the flexibility it needs to steer the economy or to keep the value of the dollar from plunging further in world exchange markets. "There's no doubt that some deficit reduction helps, but if your objective is to stabilize the dollar and perserve the Fed's flexibility to conduct monetary policy, then the answer is, it's not enough," Silvia told Reuters. The U.S. trade deficit has become one of the government's most vexing and persistent problems. The 1986 deficit was 169.8 billion dlrs and there is as yet little indication that this year's figure will be any lower, though administration officials have predicted it will drop by about 20 to 30 billion dlrs by year's end. In the past, Volcker has joked that he never lost sleep worrying whether Congress would cut too much fat from the federal budget. On the other hand, he also has made it clear he is not attached to the gradually declining deficit ceilings set for the 1986-1991 period by last year's Gramm-Rudman balanced budget law. While the new law set a ceiling of 108 billion dlrs for next year's federal deficit, both the House and Senate Budget Committees have conceded that their budget plans would fall short of the deficit reduction goal by about 25 billion dlrs. "For political reasons, 35 to 40 billion dlrs is about the most you're going to get" out of Congress at the present time, said Touche Ross's Collander. "To do something more than that would be extraordinary, remarkable and very, very difficult." Collander said the real danger for Congress was to end up short of the deficit reduction goal set by its Budget panels. "To an extent, this has become the minimum acceptable reduction level," he explained. "Anything less than that will now look like a failure to Wall Street." The budget plan now under debate on the House floor would lower an estimated 171 billion dlr deficit for the year beginning on October one to about 133 billion dlrs by cutting defense and domestic programs by 38 billion dlrs from their anticipated spending levels for next year. The Senate Budget Committee has called for a deficit of nearly 134 billion dlrs with about 18.5 billion dlrs in new taxes and about the same amount in spending cuts.  
SOVIET TRADE DEFICIT WITH WEST SOARS IN 1986. The Soviet trade deficit with the West almost quadrupled last year, reaching 2.72 billion roubles compared with 713 mln in 1985, official figures showed. Statistics published by the monthly journal Foreign Trade showed Soviet trade turnover for 1986 fell to 130.9 billion roubles from 142.1 billion the previous year, a drop of 7.8 pct. Moscow's trade surplus with East Bloc countries continued to grow in 1986. Western analysts attributed the deficit rise with the West to the world oil price slump, which hit Moscow's main export and cut hard currency earnings needed for purchases in the West.  
CANADA FEBRUARY TRADE SURPLUS 1.25 BILLION DLRS AFTER. JANUARY 623 MLN DLRS SURPLUS  CANADA FEBRUARY TRADE SURPLUS 1.25 BILLION DLRS AFTER JANUARY 623 MLN DLRS SURPLUS  
CANADA FEBRUARY TRADE SURPLUS 1.2 BILLION DLRS. Canada had a trade surplus of 1.25 billion dlrs in February compared with an upward revised 623 mln dlrs surplus in January, Statistics Canada said. The January surplus originally was reported at 533 mln dlrs. The February surplus last year was 189 mln dlrs. February exports, seasonally adjusted, were 10.44 billion dlrs against 9.85 billion in January and 10.05 billion in February, 1986. February imports were 9.19 billion dlrs against 9.23 billion in January and 9.86 billion in February, 1986.  
EC LAUNCHES ANTI-DUMPING PROBE ON JAPANESE CHIPS. The European Community launched an investigation into allegations of dumping by Japanese semiconductor makers in a move which diplomats said could mark an intensification of world trade strains. Tokyo already faces a deadline of April 17 from Washington for the imposition of 300 mln dlrs worth of tariffs on chips it imports into the U.S. The EC Executive Commission said today the European Electrical Component Manufacturers Association complained that Japanese firms were selling high capacity EPROM type (erasable programmable read only memory) chips at unfairly low prices. Japan last year took 78 pct of the 170 mln dlr EC EPROM market, up from 60 pct in 1984. The EC firms said they had been forced to offer their products at a discount of up to 30 pct in order to compete with the Japanese. The Commission said it believed the Association had given sufficient elements of proof for dumping to warrant an investigation, which could lead it to impose duties if it found the complaints were justified. The Commission claims last year's accord between the U.S. And Japan on microchip pricing gives U.S. Firms privileged access to the Japanese market.  
SPRINKEL SAYS TAX HIKE WOULD NOT REDUCE DEFICIT. Council of Economic Advisers chairman Beryl Sprinkel said the Reagan Administration remains strongly opposed to a tax increase, including 18 billion dlrs of new revenues in the budget plan by Congressional Democrats. "We believe that significant increases in taxes would not reduce deficits and could have adverse effects on growth," Sprinkel told the House Rules Committee. He said the Administration wanted to continue its policy of gradually reducing deficits through restraining government spending and promoting economic growth. Sprinkel said cutting the budget deficit was the best way to lower the trade deficit.  
CANADA TRADE RISE SEEN AS START OF RECOVERY. Canada's trade picture has brightened considerably, underscoring economists' predictions the sector would post a long awaited recovery this year. The federal government reported today that the monthly surplus soared to 1.25 billion Canadian dlrs in February, double January's 623 mln dlrs surplus and sharply higher than February 1986's 189 mln dlr tally. "Hopefully it's the beginning of a trend," said Richardson Greenshields of Canada Ltd economist Susan Clark in Toronto. Economists generally don't expect such large gains over the next months, but are looking for an upward trend throughout the year. "We thought the trade balance would improve ... over the year, and it certainly looks as if this morning's figure is indicative of that," commented economist James Donegan at the Toronto securities firm of Midland Doherty Ltd. Statistics Canada reported the surplus was driven by a 23 pct gain in automobile product exports to a record 3.2 billion dls in the month. "Recovery in the automotive sector helped push the value of exports up by 5.9 pct in February," the agency said in its monthly report. Total exports expanded to 10.44 billion dlrs from 9.85 billion dlrs in February, while imports slipped to 9.19 billion dlrs from 9.23 billion dlrs. Economists have predicted the 1987 trade surplus would end up three to five billion dlrs higher than last year's dismal 10.1 billion dlr total. In 1985 the surplus was 17.48 billion dlrs. Money market analysts said the positive trade news touched off a modest rally in the Canadian dollar, which rose to 76.85 U.S. cts on North American markets early this morning after closing at 76.58 cts Wednesday. The currency was hovering around 76.78 cts in early afternoon trading. Economists have been banking on an improved trade performance this year to stimulate an otherwise sluggish Canadian economy. Money market analysts said the positive trade news touched off a modest rally in the Canadian dollar, which rose to 76.85 U.S. cts on North American markets early this morning after closing at 76.58 cts Wednesday. The currency was hovering around 76.78 cts in early afternoon trading. Economists have been banking on an improved trade performance this year to stimulate an otherwise sluggish Canadian economy. They say the country's consumers, who have been spending at a torrid pace in recent years, will sharply curtail outlays this year and this should help curtail the flow of imports into the country. Meanwhile, demand for Canadian exports in the United States, by far the country's largest market, is expected to be strong as a result of a projected rise in American consumer spending and the relatively low value of the Canadian currency. "We maintain what's going to drive Canada's export performance is income growth in the U.S.," said Midland's Donegan. But at the Bank of Nova Scotia, deputy chief economist Warren Jestin was less optimistic about the U.S. outlook and said it could be a mistake to read too much into February's trade upturn. Jestin said, "Given the fact the U.S. economy is showing signs of weakening--particularly car sales--it would indicate that part of the strength (in Canada's trade figures) is probably transitory."  
CHILEAN TRADE SURPLUS NARROWS SLIGHTLY IN FEBRUARY. chile's trade surplus narrowed to 102.2 mln dlrs in february, from 105.4 mln dlrs in the same month last year, but it was above the 18.2-mln-dlr surplus recorded in january 1987, the central bank said. Exports in february totalled 379.4 mln dlrs, 17.2 pct above the january figure. Imports fell 9.2 pct from the previous month to 277.2 mln dlrs. The figures for the same month last year were 314 mln and 208.6 mln dlrs, respectively. The accumulated trade surplus over the first two months of 1987 stands at 120.4 mln dlrs against 132.8 mln dlrs the previous year.  
JAPAN WARNS U.S. IT MAY RETALIATE IN TRADE DISPUTE. Japan warned the United States it may take retaliatory measures if the United States imposes its planned trade sanctions on April 17, a senior government official said. Shinji Fukukawa, Vice Minister of the International Trade and Industry Ministry, said in a statement Japan would consider measures under the General Agreement on Tariffs and Trade and other actions if the United States imposes 100 pct tariffs on some Japanese exports as planned next week. However, Fukukawa said Japan was ready to continue trade talks with the United States despite its failure to convince America to call off the threatened tariffs during two days of emergency talks which ended in Washington yesterday. Last month President Reagan announced the sanctions in retaliation for what he called Japan's failure to honour a July 1986 agreement to stop dumping computer microchips in markets outside the United States and to open its home market to American goods. Fukukawa said the United States had regrettably not listened to Japan's explanation of its efforts to live up the pact and said Washington had not given any detailed explanation of why it planned to impose the tariffs.  
TAIWAN ANNOUNCES NEW ROUND OF IMPORT TARIFF CUTS. Taiwan announced plans for another round of import tariff cuts on 862 foreign goods shortly before trade talks with Washington which officials described as a move to help balance trade with the United States. Wang Der-Hwa, Deputy Director of the Finance Ministry's Customs Administration Department, told reporters the list of products included 60 items asked by Washington. "The move is part of our government efforts to encourage imports from our trading partners, particularly from the United States," he said. He said the ministry sent a proposal today to the cabinet that the tariffs on such products as cosmetics, bicycles, apples, radios, garments, soybeans and television sets be cut by between five and 50 pct. The cabinet was expected to give its approval next Thursday and the new tariff cuts would be implemented possibly starting on April 20, he added. Taiwan introduced a sweeping tariff cut on some 1,700 foreign products last January aimed at helping reduce its growing trade surplus with the United States, the island's largest trading partner. Washington however was not satisfied with the cuts and pressed for more reductions as a way of cutting its huge trade deficit with Taipei. Washington's deficit with Taipei rose to a record 13.6 billion U.S. Dlrs last year from 10.2 billion in 1985. It widened to 3.61 billion in the first quarter of 1987 from 2.78 billion a year earlier, Taiwan's official figures show. Today's announcement came before a departure later today of a 15-member Taiwan delegation for Washington for a series of trade talks with U.S. Officials. The delegation's leader, Vincent Siew, told reporters last night he was leaving with "a heavy heart," meaning that he would face tough talks in Washington because of rising protectionist sentiments in the U.S. Congress. Taiwan's 1986 trade surplus with Washington was the third largest, after Japan and Canada. Siew said the talks, starting on April 14, would cover U.S. Calls for Taiwan to open its market to American products, purchases of major U.S. Machinery and power plant equipment, import tariff cuts and protection of intellectual property. "I am afraid this time we have to give more than take from our talks with the U.S.," he said without elaborating.  
BRITISH MINISTER SAYS HE WARNED TOKYO OF SANCTIONS. A British minister said he had given the Japanese government a clear warning of sanctions against Japanese companies if Tokyo did not allow more access to its internal markets "and it was clearly understood." Corporate Affairs Minister Michael Howard said on his return from a visit to Japan he thought the Japanese were beginning to appreciate the need to be "fair and open" about access to their own markets. At an airport news conference Howard denied opposition charges that his trip had been a failure because he had returned empty-handed. "I did what I set out to do. I was sent to deliver a clear message to the Japanese government, and I delivered it very clearly, and it has been clearly understood." Howard said that under the Financial Services Act the govenment had considerable flexibility in taking sanctions against Japanese companies and finance houses operating in Britain. "It is not simply a question of withdrawing or refusing operating licences. We can ban firms from certain countries from carrying out certain kinds of business, while allowing them to carry out other kinds." "I hope we don't have to use these powers, but I made it clear in Japan that if our timetable isn't met, we shall use them." He said it would be unfortunate if Britain and Japan became involved in a tit-for-tat exchange, adding that Japan gained more than anyone else from an open trading relationship. "I think they are beginning to appreciate that if this relationship is to continue, it is very important for them to be fair and open about access to their own markets." On the question of the British firm Cable and Wireless Plc <CAWL.L>, which is trying to win a significant share of telecommunications contracts in Japan, Howard said he had told the Japanese this was being widely regarded as a test case. He said there were signs of movement on the case. Cable and Wireless was due to take part in talks in Japan next Tuesday, he said. Earlier this week British Prime Minister Margaret Thatcher said Britain could not go it alone on sanctions against Japan, but would have to coordinate action with its European Community partners. Community sources said after a meeting of trade officials yesterday that the group might impose steep new tariffs on a range of Japanese goods to prevent diversion from United States markets if Washington imposes trade sanctions against Tokyo as it has threatened.  
SINGAPORE EXTERNAL TRADE GAINS 8.8 PCT IN QUARTER. Singapore's external trade grew 8.8 pct in first quarter 1987, against a 12.4 pct decline in the same period last year and two pct growth in the previous quarter, the Trade Development Board said. It said exports over the period rose by 8.7 pct to 12.38 billion dlrs and imports by 8.9 pct to 14.64 billion for a trade deficit of 2.26 billion, against a 2.06 billion deficit in the same 1986 period and 1.78 billion deficit previously. The growth was attributed to the strength of non-oil trade, especially computers and computer parts, electronic components and garments, it said.  
MALAYSIA'S 1986 MANUFACTURING EXPORTS RISE 24 PCT. Malaysia's manufacturing exports rose by 24.5 pct to 15.1 billion ringgit in 1986, chairman of the Export Promotion Council Ahmad Sarji Abdul Hamind said. The improved export performance was led by electrical and electronic products, textiles, footwear, clothing, processed food, timber, chemical and rubber products, he told a news conference. However, total gross exports for the year declined by 5.6 pct to 35.9 billion ringgit from 38 billion in 1985 due to a fall in major commodity exports and weak prices, he said.  
TRADE ISSUES STRAINING EC'S PATIENCE WITH JAPAN. Member states of the European Community are starting to run out of patience with Japan which they believe has repeatedly promised major initiatives to open its market to imports, but as often made only minor moves. Diplomatic sources here said several recent actions by EC countries bear witness to a new disillusionment with the willingness, or at least the ability, of the Japanese government to reduce its massive trade surplus with the EC. However, they said an all-out trade war may be far off, as EC states know they would suffer almost as much as Japan. Senior EC diplomats gave a generally favourable reaction to an EC executive commission proposal under which the EC could raise tariffs on a range of Japanese products if the U.S. Carries out a threat to make a similar move on April 17. The EC tariffs, which would involve renouncing obligations entered into with the world trade body GATT, would be designed to stop a diversion of exports to the EC market from that of the U.S. The diplomats were meeting as Tokyo announced that the EC's trade deficit with Japan reached a record 2.13 billion dlrs in March, up from 1.94 billion in February. In 1986, Japanese exports to the EC totalled 30.67 billion dlrs, up 4.5 pct from 1985, while EC exports to Japan fell one pct to 12.43 billion dlrs. In Paris, trade minister Michel Noir said France has decided to give Japan a taste of its own medicine. Burgeoning imports of microwave ovens and of frozen Coquilles St Jacques will be restricted by a strict application of French quality standards -- something EC states say often happens to their own exports entering Japan. Britain has threatened to withdraw the licences of Japanese banks and insurance companies to operate in the City of London, because the British Cable and Wireless company lost out in competition for a Japanese telecommucations contract. However, British officials in London have said that the government may have gone too far in implying that it would take immediate drastic action unless the contract was reopened. By contrast, West Germany, with the EC's most successful economy, has never threatened Tokyo with sanctions, preferring to rely on firm diplomacy and encouragement of its own industries to surmount obstacles to export to Japan. The EC Commission itself has switched its tactics in recent years, substituting general calls for action by Japan to open its market with specific demands for moves in key areas. At present, it is, for instance, pressuring Japan to end allegedly discriminatory taxation of imported wines and spirits, to ensure EC companies have a chance to win contracts for the building of a new international airport, and to simplify certification and safety checks on imported cars. EC officials say these tactics yield some benefits, but often the Japanese announce modifications of their non-tariff barriers which open the door to imports by only a token amount. They stress, however, that any action must be taken by the EC as a whole to stop beggar-my-neighbour action. One of the problems Britain could face if it were to withdraw licences for Japanese banks would be that the bankers would be welcomed with open arms in Frankfurt or Amsterdam, they point out.  
TRADE ISSUES STRAINING EC'S PATIENCE WITH JAPAN. Member states of the European Community are starting to run out of patience with Japan which they believe has repeatedly promised major initiatives to open its market to imports, but as often made only minor moves. Diplomatic sources here said several recent actions by EC countries bear witness to a new disillusionment with the willingness, or at least the ability, of the Japanese government to reduce its massive trade surplus with the EC. However, they said an all-out trade war may be far off, as EC states know they would suffer almost as much as Japan. Senior EC diplomats gave a generally favourable reaction to an EC executive commission proposal under which the EC could raise tariffs on a range of Japanese products if the U.S. Carries out a threat to make a similar move on April 17. The EC tariffs, which would involve renouncing obligations entered into with the world trade body GATT, would be designed to stop a diversion of exports to the EC market from that of the U.S. The diplomats were meeting as Tokyo announced that the EC's trade deficit with Japan reached a record 2.13 billion dlrs in March, up from 1.94 billion in February.  
EC COULD DECIDE ON JAPAN TRADE MOVES IN LATE MAY. The European Community (EC) has effectively given Japan six weeks to take moves to open its market to imports before it decides on possible tough retaliatory trade measures, EC diplomats said. They said EC foreign ministers will meet on May 25 and 26 to review the state of trade relations between the two sides. The EC executive commission was asked by representatives of member states on Friday to propose a renunciation of some EC pledges to the world trade body, GATT, unless there are "adequate and early measures to open the Japanese market." Such a renunciation would be the first step to imposing stiff increases in duties, or quantitative limits, on Japanese exports. The diplomats said it was unlikely that the issue would be discussed in detail at the next meeting of EC foreign ministers on April 27 and 28 in Luxembourg as time was needed to prepare proposals for possible retaliatory action. They said the commission has powers to take some limited action before getting ministerial approval to prevent Japanese exports of electrical, photographic and other goods being diverted to Europe following of possible U.S. Tariff moves. In May, the ministers are also likely to discuss how to prevent Japan from getting an extra trading advantage as a result of Spain and Portugal joining the bloc, which obliges them gradually to reduce tariffs on many industrial goods. Japan's trade surplus with the Community has grown steadily, registering a record 2.13 billion dlrs in March.  
TAIWAN ANNOUNCES NEW ROUND OF IMPORT TARIFF CUTS. Taiwan announced plans for another round of import tariff cuts on 862 foreign goods shortly before trade talks with Washington which officials described as a move to help balance trade with the United States. Wang Der-Hwa, Deputy Director of the Finance Ministry's Customs Administration Department, told reporters the list of products included 60 items asked by Washington. "The move is part of our government efforts to encourage imports from our trading partners, particularly from the United States," he said. He said the ministry sent a proposal today to the cabinet that the tariffs on such products as cosmetics, bicycles, apples, radios, garments, soybeans and television sets be cut by between five and 50 pct. The cabinet was expected to give its approval next Thursday and the new tariff cuts would be implemented possibly starting on April 20, he added. Taiwan introduced a sweeping tariff cut on some 1,700 foreign products last January aimed at helping reduce its growing trade surplus with the United States, the island's largest trading partner. Washington however was not satisfied with the cuts and pressed for more reductions as a way of cutting its huge trade deficit with Taipei. Washington's deficit with Taipei rose to a record 13.6 billion U.S. Dlrs last year from 10.2 billion in 1985. It widened to 3.61 billion in the first quarter of 1987 from 2.78 billion a year earlier, Taiwan's official figures show. Today's announcement came before a departure later today of a 15-member Taiwan delegation for Washington for a series of trade talks with U.S. Officials. The delegation's leader, Vincent Siew, told reporters last night he was leaving with "a heavy heart," meaning that he would face tough talks in Washington because of rising protectionist sentiments in the U.S. Congress. Taiwan's 1986 trade surplus with Washington was the third largest, after Japan and Canada. Siew said the talks, starting on April 14, would cover U.S. Calls for Taiwan to open its market to American products, purchases of major U.S. Machinery and power plant equipment, import tariff cuts and protection of intellectual property. "I am afraid this time we have to give more than take from our talks with the U.S.," he said without elaborating.  
U.S. FEBRUARY TRADE TO BE REPORTED ON NEW BASIS. The February monthly merchandise trade figures to be reported Tuesday by the Commerce Department will be on a new basis reflecting more recent data, so avoiding future revisions of the monthly figure, Commerce officials said. The overall January deficit of 14.8 billion dlrs will be revised, but the February figure will be a final one, officials said. Previously, the initial monthly figure has had to be revised in subsequent months because of the time lag between the report and the compiling of final estimates on imports and exports. The reporting of the February trade data was delayed several weeks to permit gathering latest figures on imports and exports to give a clearer picture of the monthly trade balance.  
U.S. FEBRUARY TRADE TO BE REPORTED ON NEW BASIS. The February monthly merchandise trade figures to be reported Tuesday by the Commerce Department will be on a new basis reflecting more recent data, so avoiding future revisions of the monthly figure, Commerce officials said. The overall January deficit of 14.8 billion dlrs will be revised, but the February figure will be a final one, officials said. Previously, the initial monthly figure has had to be revised in subsequent months because of the time lag between the report and the compiling of final estimates on imports and exports. The reporting of the February trade data was delayed several weeks to permit gathering latest figures on imports and exports to give a clearer picture of the monthly trade balance.  
MIYAZAWA SEES EVENTUAL LOWER U.S. TRADE DEFICIT. Japanese Finance Minister Kiichi Miyazawa told a press conference he expects the U.S. Trade deficit to eventually start reflecting economic fundamentals, which should influence exchange rates. The minister was not referring to the U.S. Trade data to be released in Washington later today. Miyazawa also said he told major industrial nations when he was in Washington last week that present exchange rates are not necessarily good. He had said earlier in Washington that current exchange rates were within levels implied in the February Paris currency accord.  
JAPAN DETAILS PLAN TO STAVE OFF TRADE PROBLEMS. Japan's Liberal Democratic Party (LDP) has drawn up a detailed plan calling for large tax cuts and an increase in government purchases of foreign goods, the head of the committee working out the plan, Junichiro Koizumi, said. The plan will also urge the government to double 1985's official development assistance to 7.6 billion dlrs within five years instead of seven as the government had promised, senior LDP officials said at a press conference. LDP executive council chairman Shintaro Abe will explain the plan to U.S. Officials when he visits the U.S. On April 19. Abe's visit is to prepare for Prime Minister Yasuhiro Nakasone's talks with President Ronald Reagan later this month. Koizumi said the LDP plan will not specify the size of the tax cut or the amount of domestic demand to be stimulated. However, top LDP executives will work out figures so that Abe will be able to offer specifics to U.S. Officials. The proposed increase in procurement of foreign goods by the government will probably include the purchase of super computers, LDP officials said.  specific trade problems with other nations and will encourage flows of funds to developing countries, the officials said. The LDP expects the measures to prop up the economy and lessen trade problems with the U.S., They added. The basic ideas of the LDP's plan were presented to and welcomed by monetary authorities of the major industrial nations in Washington last week, they said. The LDP plan will form the basis for the last of several packages to stimulate Japanese domestic demand and will be unveiled by the government in late May.  
JAPAN FARM REFORM A KEY TO TRIMMING TRADE SURPLUS. Basic reform of Japan's protected farm sector is a key to shifting its economy away from export to domestic-led growth, a vital step if it is to trim its trade surplus, securities analysts said. The farm sector, which is protected by import tariffs and quotas, propped up by subsidies and price supports, and sheltered by the tax system, has ample room for change, they said. "In economic terms, reform would be a plus," said Christopher Chew of brokerage firm James Capel and Co. The ultimate cost of the existing system is food prices twice those in Europe and two to three times those in the U.S., The analysts said. Spending on food accounts for about one quarter of the average household's budget and roughly 10 pct of the gross national product (GNP), according to a study by Chew. Reducing these prices could increase household spending power by five pct, his study said. The money could be spent on products which would have a more direct impact in boosting domestic growth, it added. "There's a lot of slack," a U.S. Government official in Tokyo said. "All that money could be spent on something else." Direct central government subsidies to the farm sector amount to some five billion dlrs per year. Independent estimates put total subsidies from all sources as high as 37 billion and the analysts said much of that money is wasted. Changing tax laws to encourage city residents who only farm on weekends to put their land up for sale for residential development would also give a boost to domestic spending, economists said. "Housing construction is the key strategic variable in the expansion of domestic demand," wrote Chihiro Nakajima, professor at Kyoto Gakuen University. Japanese business groups are calling for staged farm reform to shift some of the burden of trade friction and economic restructuring away from the manufacturing sector and onto the farm sector. Employers groups also want change. "If you really want to expand domestic demand, the way to do it is not to raise wages recklessly, but to reduce commodity prices," Bumpei Otsuki, President of the Japan Federation of Employers' Associations told a recent press conference. External pressures are rising as the U.S. And Europe seek removal of tariffs and quotas to help reduce their trade deficits with Japan. But vested Japanese interests opposed to change remain well entrenched, dimming prospects for quick reform, analysts said. Although the full-time farm population is falling and there are signs the LDP is paying more attention to urban constituencies, the ruling party remains heavily dependent on farm votes in the rural areas. One rural vote is worth several city votes due to the pattern of constituency borders. The LDP is already in political trouble over its tax reform plan and does not want to raise another sticky issue so soon, the analysts said. Consumer groups are politically weak and tend to accept the traditional view that higher prices are a small fee to pay for national food security, they said. Powerful agricultural cooperatives are fiercely opposed to import liberalisation, but are more flexible about reforms aimed at stepping up productivity, they said. Reform, when it comes, will be in response to specific pressure rather than an all-embracing program, said Chew.  
JAPAN DETAILS PLAN TO STAVE OFF TRADE PROBLEMS. Japan's Liberal Democratic Party (LDP) has drawn up a detailed plan calling for large tax cuts and an increase in government purchases of foreign goods, the head of the committee working out the plan, Junichiro Koizumi, said. The plan will also urge the government to double 1985's official development assistance to 7.6 billion dlrs within five years instead of seven as the government had promised, senior LDP officials said at a press conference. LDP executive council chairman Shintaro Abe will explain the plan to U.S. Officials when he visits the U.S. On April 19. Abe's visit is to prepare for Prime Minister Yasuhiro Nakasone's talks with President Ronald Reagan later this month. Koizumi said the LDP plan will not specify the size of the tax cut or the amount of domestic demand to be stimulated. However, top LDP executives will work out figures so that Abe will be able to offer specifics to U.S. Officials. The proposed increase in procurement of foreign goods by the government will probably include the purchase of super computers, LDP officials said. According to the plan, Japan will also strive to solve specific trade problems with other nations and will encourage flows of funds to developing countries, the officials said. The LDP expects the measures to prop up the economy and lessen trade problems with the U.S., They added. The basic ideas of the LDP's plan were presented to and welcomed by monetary authorities of the major industrial nations in Washington last week, they said. The LDP plan will form the basis for the last of several packages to stimulate Japanese domestic demand and will be unveiled by the government in late May.  
BALDRIGE TO LAUNCH FAR EAST TRADE DRIVE. U.S. Commerce Secretary Malcolm Baldrige leaves on Saturday on a 10-day trip to the Far East to help spur U.S. Trade and improve business relations with China, South Korea and the Philippines, U.S. Officials say. Baldrige will also stop in Hong Kong to meet British officials and local U.S. And Hong Kong businessmen. The U.S. Last year had major deficits with three of its Asian trading partners -- South Korea 7.1 billion dlrs, Hong Kong 6.4 billion and China 2.1 billion. The deficit with the Philippines was 800 mln dlrs. Baldrige will meet South Korean President Chun Doo-hwan and Trade Minister Rha Woong Bae on Monday to discuss opening South Korean markets to more U.S. Goods. Baldrige will be in Peking from April 21 to 24. He will meet Zheng Tuobin, minister for foreign economic relations and trade, attend a meeting of the U.S.-China Joint Commission on Commerce and Trade and address a management and training organisation. However, U.S. Officials said a chief purpose of Baldrige's visit would be to discuss relaxed U.S. Rules for transferring modern technology to Chinese industries. In Hong Kong, Baldrige will hold meetings on April 27 with Governor David Wilson and Trade and Industry Secretary Eric Ho, as well as addressing the American Chamber of Commerce. U.S. Officials said Baldrige will meet Philippines President Corazon Aquino on April 28 to show continued U.S. Support for her government and to discuss steps it could take to improve the atmosphere for American investment. He will also will meet Finance Secretary Jaime Ongpin and Trade and Industry Secretary Jose Concepcion.  
REAGAN TO ANNOUNCE DECISION ON JAPAN SANCTIONS. President Reagan today is to announce a decision on tough new tariffs on Japanese exports to retaliate for what he calls Japan's failure to end its unfair practices in semiconductor trade. The 100 pct tariffs are to be imposed on 300 mln dlrs of Japanese goods recommended for curbs by a special panel of experts headed by the U.S. Trade Representative's Office. Reagan announced last March 27 he would impose the tariffs on certain goods taken from a list that ranged from computors and television sets to power tools and photographic film. The panel this week winnowed through the list of the some 20 products and sent their recommendations yesterday to Santa Barbara, where Reagan is vacationing. In his March annoucement, Reagan said "I am committed to full enforcement of our trade agreements designed to provide American industry with free and fair trade opportunities." He added the tariffs would be lifted once Japan honored the pact it signed last year to end dumping semiconductors in world markets and opened its home market to U.S. products. U.S. officials said Japan had done nothing since the March announcement to alter Reagan's plan to invoke the sanctions. White House spokesman Marlin Fitzwater said yesterday:  "we do not want a trade war, but we feel that this is the kind of action that requires meaningful action." Reagan's move follows steadily rising U.S. trade deicits, with last year's hitting a record $169.8 billion. About one-third of the deficit is in trade with Japan. Congress is weighing a trade bill to force the president to retaliate in certain cases of unfair trade practices. He has opposed the legislation, saying it would prevent negotiated solutions to trade disputes and, in any case, that existing law was adqeuate to end unfair trade practices. Trade experts say his tough action against the Japanese was as much to penalize the Japanese as to show Congress he did not need any new trade legislation. The Japanese have complained that they have been honoring the semiconductor pact, but that it would take time before the results showed up. U.S. officials, however, have said their monitoring of Japanese semiconductor shipments to East Asian countries and Western Europe showed no letup in the dumping and that the Japanese home markets remained shut to American exports. Japan has said that if Reagan imposed the tariffs, it would file a complaint with the General Agreement on Tariff and Trade (GATT). It said hoped GATT would find the U.S. retaliation had violated the regulations of the global trading group and would approve compensation or Japanese retaliation. U.S. officials have said they did not think Japan would retaliate because it had too much to lose in any trade war with the United States.  
YEUTTER SAYS JAPANESE CURB ALL BUT CERTAIN. U.S. Trade Representative Clayton Yeutter said it was all but certain President Reagan would go ahead today and impose curbs on Japanese exports as planned. Asked in a television interview what the chance was for Reagan to cancel the scheduled 100 pct tariffs on Japanese electronic exports, he said "slim to none." Reagan announced on March 27 he would impose the tariffs to retaliate for Japan's failure to honor a 1986 agreement to end dumping computer semiconductors in world markets at less than cost and to open its home markets to U.S. products. Yeutter, on the NBC program "Today," said the United States did not want to terminate the agreement and would drop the tariffs once Japan began fulfilling the agreement. He said Japanese negotiators last week told U.S. officials they were honoring the pact, but Yeutter said it would take time to monitor any compliance. Asked how long that would take, he said "We want to see a pattern of compliance, so in a minimum I would say that would take a few weeks." Yeutter said he did not think there would be much consumer impact by the tariffs on 300 mln dlrs worth of Japanese goods because the items selected are also readily available from other countries and manufacturers. He said he did not think Japan would retaliate. "It seems to me it is not in the interests of either country to get in an escalating conflict.  The Japanese understand that full well," Yeutter said. He added Japan might challenge the tariffs in the General Agreement on Tariffs and Trade (GATT), but "that's more of a paper kind of exercise and I don't really expect to see any adverse impact on U.S. trade." Yeutter also said he did not see any way the semiconductor issue could be resolved before or during a Washington visit later this month by Japanese Prime Minister Yasuhiro Nakasone. He said he hoped the visit, which is to have trade as a major issue, would be productive but "I don't see any practical way to resolve this particular dispute before or during his visit."  
U.S. COMMERCE TRADE REPORT OMITS FREIGHT COSTS. The Commerce Department said on that insurance and freight costs for imported goods of 1.45 billion dlrs were included in the February trade deficit of 15.1 billion dlrs reported on Tuesday. The department is required by law to wait 48 hours after the initial trade report to issue a second report on a "customs value" basis, which eliminates the freight and insurance charges from the cost of imports. Private-sector economists emphasized that the Commerce Department was not revising down the deficit by 1.45 billion dlrs but simply presenting the figures on a different basis. A report in the Washington Post caused a stir in the foreign exchanges today because it gave the impression, dealers said, that the underlying trade deficit for February had been revised downward. The Commerce department would like to have the law changed to permit it to report both sets of figures simultaneously. "My feeling is the second one is a better report but there's legislation that requires us to delay it two days," said Robert Ortner, Commerce undersecretary for economic affairs. "But this has been going on for a long time and no one pays any attention to the second figure." The 15.1 billion dlr February trade deficit compared with a revised January deficit of 12.3 billion dlrs. The law requiring a 48-hour delay in publishing the monthly trade figure excluding freight and insurance was passed in 1979. Reportedly the feeling was the first figure, which includes customs, freight and insurance, allowed a better comparison with other countries that reported their trade balances on the same basis. The second figure, which would always be lower by deducting freight and insurance, presents the deficit in a more favorable light for the Reagan administration. Ortner said he would like to see the law changed to eliminate the 48-hour delay in reporting the two figures. "We're considering it," he said, "It's one of those dinosaur laws and I think it's time has come." The second figure, which would always be lower by deducting freight and insurance, presents the deficit in a more favorable light for the Reagan administration. Ortner said he would like to see the law changed to eliminate the 48-hour delay in reporting the two figures. "We're considering it," he said, "It's one of those dinosaur laws and I think its time has come."  
JAPANESE TARIFFS SEEN AS WORLDWIDE WARNING. The tough trade sanctions President Reagan imposed on Japanese exports are not only a shot across Japan's bow but also a sign Reagan will attack unfair trade practices worldwide, U.S. officials said. But Robert Crandall, a trade specialist at Brookings Institution, a think tank, said "a shot across their bow can often result in a shot in our stern." He said it left the United States open to retaliation. The U.S. officials said the 100 pct tariffs Reagan ordered on 300 mln dlrs worth of Japanese goods will also show Congress that a tough pro-trade stand can be taken under existing laws, and no new protectionist legislation is needed. In the past year tough trade action had been taken against the European Community over corn and sorghum, Taiwan over beer and wine, South Korea over counterfeiting of copyrights, patents and trademarkets and Japan on tobacco. White House spokesman Marlin Fitzwater told reporters the tariffs - up from five pct - should be seen as a "serious signal" to other nations on the need for fair trade practices. Reagan said he imposed the sanctions on certain computers, television sets and some hand tools because Japan did not honor an agreement to end dumping semiconductors in world markets at less than cost and to open its markets to U.S. products. The tariffs were placed on items which were available from other sources so there would be little effect on the American consumer, Fitzwater said. Reagan has come under heavy pressure to take tougher action - especially against Japan - to end global unfair trade practices and reverse the growing U.S. trade deficit. The alternative was that if he did not, Congress would. The U.S. trade gap last year was a record 169.8 billion dlrs, and continues to rise, with Japan accounting for about one-third of America's overall deficit. But there are other two-way deficits - with Canada, West Germany, Taiwan and South Korea - and Reagan officials said the president is ready to fight them all. Reagan said in announcing the sanctions today that "I regret that these actions are necessary," but that the health and vitality of the U.S. semiconductor industry was essential to American competitiveness in world markets. "We cannot allow it to be jeopardized by unfair trading practices," Reagan added in the statement from his California vacation home at Santa Barbara. He said the tariffs would remain in force until Japan abided by the agreement. U.S. officials say the action today will show Congress - which is about to write a trade bill he does not like - that he already has the tools needed to fight unfair trade. The White House aide said of the tariff action, "it wasn't done to appease Congress, but because there was an unfair trade practice." The aide added, however, "on another plane, it was an example of how the administration uses the trade law to fight unfair practices, an that it is not necessary to make a major overall of our trade laws." But the analyst, Crandall, said the tariff action was not in the best interests of the United States, and that negotiations should have been pursued to resolve the issue. "It's very dangerous to go down the retaliatory route," he said, "because it leads to more retaliation and restrictions in trade." Crandall said, "the administration is doing this for its political impact across the country, and therefore its impact on Congress." He said, "I don't think it makes a lot of sense." But other analysts said it made little difference whether the tariffs were aimed at U.S. trading partners or Congress, and that the main point was that the trading partners were on notice that retaliation was a weapon Reagan was ready to use. Spokesman Fitzwater said "we don't want a trade war," but the imposition of sanctions showed the United States would act when it had evidence that trade pacts were being violated. Crandall said, "the administration is doing this for its political impact across the country, and therefore its impact on Congress." He said, "I don't think it makes a lot of sense." But other analysts said it made little difference whether the tariffs were aimed at U.S. trading partners or Congress, and that the main point was that the trading partners were on notice that retaliation was a weapon Reagan was ready to use. Spokesman Fitzwater said "we don't want a trade war," but the imposition of sanctions showed the United States would act when it had evidence that trade pacts were being violated.  
YEUTTER ALMOST SURE JAPAN WILL NOT RETALIATE. U.S. Trade Representative Clayton Yeutter said he was almost sure Japan would not retaliate against tariffs President Reagan slapped on 300 mln dlrs of Japanese electronic goods today. "I'd say it's 99 plus pct sure that it (the tariffs) will not provoke a retaliation on American products," Yeutter told Cable News Network. "Japan has far too much at stake in this relationship (with the United States) to seriously entertain thoughts of retaliation," Yeutter said. Earlier today, Reagan imposed 100 pct tariffs on a range of Japanese goods in retaliation for Japan's alleged violation of a bilateral pact governing semiconductor trade. Yeutter did say that U.S. farm products would be targeted if Tokyo decided to hit back. "If they (Japan) were to retaliate, it would probably be on something like American agricultural products," he said. "But I really think the chances of that happening are between slim and none," he added.  
JAPAN WILL NOT RETALIATE NOW AGAINST U.S. TARIFFS. Japan does not plan to take immediate retaliatory action against implementation of U.S. Tariffs on some Japanese electronic goods, the minister of international trade and industry, Hajime Tamura, said in a statement. Japan requested bilateral consultations in accordance with Article 23-1 of the General Agreement on Tariffs and Trade (GATT) in Washington yesterday. Tamura said there was deep regret over the U.S. Measures, which will impose 100 pct tariffs on about 300 mln dlrs worth of Japanese imports of some small computers, colour television sets and power tools.  
SEOUL ANNOUNCES MORE TARIFF CUTS FOR U.S.. South Korea will cut import taxes on 50 items, including construction equipment, photographic film, cigarettes and pipe tobacco, to help reduce its trade surplus with the United States, the finance ministry said. The tariff cuts, of between five and 30 percentage points, take effect on July 1. This brings to 157 the number of goods on which import taxes have been cut this year, a ministry official said. The 157 are among about 290 items on which Washington has asked Seoul to lower tariffs, he added. Today's announcement follows Saturday's removal of import curbs on 170 products. For 46 of those products, the U.S. Had had sought free access to the South Korean market. "This is in line with the government's policy to limit our trade surplus with the United States to help reduce trade friction between the two countries," the official said. South Korea's trade surplus with the U.S. Rose to 7.3 billion dlrs in 1986 from 4.3 billion in 1985. Officials said the surplus was expected to widen further in 1987 but Seoul would try to hold it below eight billion dlrs. The finance ministry said tariffs would be cut later this month on a further 53 items, including acrylic yarn and ethylene, by an average 7.7 percentage points in order to check inflation. The officials said the tariff cuts would contribute to holding wholesale and consumer price rises at less than three pct this year.  
U.S. STUDY SAYS TARIFFS AND QUOTAS COULD BACKFIRE. The use of tariffs and quotas to reduce the flow of foreign goods into the United States will do little to cut the nation's swelling trade deficit, a government study said. In fact, the Federal Trade Commission (FTC) report said, such protectionist policies could make U.S. Products less competitive in the world marketplace by raising the cost of imported products that are re-exported in different forms. "Such policies are much more likely to hurt, rather than help, the productive capabilities of the U.S. Economy," it said. The 218-page report, written by FTC economists John Hilke and Philip Nelson, blamed the rising trade shortfall, which climbed to a record 166.3 billion dlrs last year, on shifting currency exchange rates and growing U.S consumer demand. Other factors commonly blamed for the deficit, such as foreign trade practices, deteriorating U.S. Industrial competitiveness, high labour costs and government restrictions on mergers, added little to the problem, it said. "Although each industry's competitiveness affects the level of imports and exports in that industry, in general we find that there have been no significant industry-specific changes affecting competitiveness that would explain the increase in the overall trade deficit," the study said. "To the extent any government action is needed to deal with the trade deficits, policies should focus on economy-wide phenomena such as exchange rates and relative economic growth," the FTC study said. Supporting its conclusion that broad-based economic shifts were the cause of the increase in the trade deficit, the report said it found that nearly all U.S. Industries lost some domestic market share to foreign competitors in the 1980s. It also said it found a "fairly direct relationship" between the increased trade deficit and the influence of shifting currency exchange rates, U.S. Economic growth and domestic demand for goods and services, which has outpaced foreign consumer demand. The study examined seven factors which have been commonly blamed for the trade deficit: foreign government subsidies and trade barriers to protect foreign industries, a lack of investment in U.S. Industry, declining research and development in U.S. Industry, high labour costs, union work rules, the oil prices rises of the 1970s and U.S. Antitrust regulations. In each case, the study found little or no evidence that the factor had any impact on the trade deficit.  
SEOUL ANNOUNCES MORE TARIFF CUTS FOR U.S.. South Korea will cut import taxes on 50 goods, including construction equipment, cigarettes and tobacco, to help reduce its trade surplus with the United States, the Finance Ministry said today. The tariff cuts of between five and 30 pct will take effect on July 1. South Korea ran a trade surplus of 7.3 billion dlrs with Washington in 1986, sharply up from 4.3 billion in 1985. Today's announcement brings to 157 the number of goods for which similar measures were taken this year, a ministry official said. The 157 are among about 290 items on which Washington has asked Seoul to lower tariffs. "This is in line with the government's policy to limit our trade surplus with the United States to help reduce trade friction between the two countries," said the official.  
JAPAN CONCERNED AT EC TRADE THREATS - MINISTER. Japan is disappointed at the recent threats of trade retaliation from the European Community (EC) just as the trade situation between the two is improving, Japanese Trade and Industry Minister Hajime Tamura said. "I am deeply concerned that the EC has moved to take a harsher line toward Japan despite this tangible improvement," he said in a speech prepared for delivery at the opening of a new centre designed to improve understanding between the two sides. Last week, foreign ministers of the 12 EC nations agreed to impose tariffs on a range of unspecified Japanese electrical goods unless Tokyo opened its markets more to EC exports. Tamura referred to a 55 pct rise in Japanese imports of EC manufactured goods in the year ended March 31. "I feel this is a strong step on the road to balance through expansion." "While I do not deny the existence of the trade deficit between Japan and the EC, I believe it should be rectified not by reducing trade through import restrictions or export restraints, but by expanding the (overall) trade," Tamura said.  
TURKISH TRADE DEFICIT WIDENS IN APRIL. Turkey's trade deficit widened to 382 mln dlrs in April from 275 mln in March and 273 mln in April 1986, the State Statistics Institute said. The deficit for the first quarter of 1987 widened to 1.23 billion dlrs from 1.20 billion a year earlier. April exports totalled 702 mln dlrs compared with imports of 1.08 billion. Exports in the first four months were worth 2.69 billion dlrs compared with imports of 3.92 billion.  
U.S. WEIGHS LIFTING JAPANESE TRADE CURBS. The White House has completed a new review of Japanese semiconductor trading practices but has not yet decided whether trade sanctions levied against Japan last April should be lifted, U.S. officials said. They said the president's Economic Policy Council looked at Japan's adherence to the 1986 U.S.-Japanese semiconductor pact yesterday and that an announcement may be made shortly. But there was no hint what the announcement might be. Officials have said the 100 pct tariffs on 300 mln dlrs of Japanese exports could be modified if Japan was found to be honoring a portion of its semiconductor pact. But they also noted that the White House has said it was unlikely the tariffs would be lifted before the meeting of the world's seven major economic powers in Venice on June 8-10. The officials added that while the curbs complicated U.S.-Japanese economic cooperation, they did serve to blunt Congressional criticism that the Reagan Administrtation was not taking tough actions to reduce he U.S. trade deficit. Reagan imposed the sanctions on April 17 in retaliation for Japan's failure to honor commitments to end dumping semiconductors in world markets at less than production costs and to open its own market to U.S. goods. The sanctions were levied on certain Japanese television sets, personal computers and hand-held power tools. Reagan, in imposing the curbs, said they would be lifted as soon as there was evidence of a pattern that Japan was adhering to the pact.  
SHULTZ WELCOMES TOKYO ECONOMIC PACKAGE. U.S. Secretary of State George Shultz said the 6,000 billion yen economic package announced by Tokyo last week went further than the U.S. Had expected. But he said the U.S. Would not lift the selective economic sanctions it imposed on Japanese imports in April until Tokyo changed its sales policies concerning computer microchips. Speaking in a televised news conference linking several European capitals, Shultz said it was heartening that the Japanese had confronted the problem of stimulating domestic and global demand.  "There is an even greater amount of stimulus than was originally thought," said Shultz, speaking from Washington. "It is a lot more than nothing. It is more than was talked about when (Prime Minister Yasuhiro) Nakasone was here. "It involves a major reduction in tax rates and we believe that getting the tax burden down is one way of stimulating the economy," he added. But asked by Japanese reporters, also linked into the news conference, whether the positive reaction meant the U.S. Might decide at next week's Venice summit to lift its sanctions on some Japanese electronic goods, Shultz replied: "These sanctions were undertaken on the basis of an agreement that had been reached between the United States and Japan on various sale practices and prices relating to the chip market. "They will be lifted as the facts of change by Japan to the agreement that it made become evident." He said U.S. Officials had only been able to monitor the situation for a month and that it was impossible to determine a trend on only one month's data. The U.S. Imposed 100 pct import duties on personal computers, colour televisions and power tools, alleging that Japan had violated last September's bilateral agreement by selling computer chips at below fair market value. Shultz said West Germany and other nations would also do well to look at what they could do to stimulate demand. Asked whether the U.S. Could reasonably ask its allies to take action to stimulate the world economy without a bold American initiative to reduce the size of the federal budget deficit, Shultz said moves were already underway to tackle the problem. He said by the end of the current fiscal year the deficit would probably be reduced by around 35 billion dlrs against last year, and that the budget being worked on this year would contain a major reduction.  
REAGAN SEEKS ROMANIA TRADE CONCESSION. President Reagan called for continued nondiscriminatory treatment for Romanian exports to the United States in the face of congressional opposition because of the Bucharest government's record on human rights. A White House statement said Reagan's decision to press for continuation of so-called Most Favored Nation (MFN) status for Romania had been "exceptionally difficult" and came after "all options were seriously considered." But the statement said that despite concerns about human rights abuses by the Bucharest government, the president had decided that should be continued because it helped stimulate emigration from Romania and gave the United States influence on human rights practices there. The statement was issued as Reagan sent to Congress requests for one-year extensions of MFN for Romania, Hungary and China. The House of Representatives has attached to a trade bill legislation that would temporarily deny MFN for Romania pending certification by Reagan that the country had made progress on human rights. There is no controversy over continuation of MFN for Hungary and China.  
INVESTMENT CRUCIAL TO U.S. TEXTILE RECOVERY. With more private investment, not more protection, the U.S. textile industry could become competitive with the most modern foreign producers, analysts from two congressional agencies said today. The Office of Technology Assessment, a nonpartisan arm of Congress told a House Ways and Means Trade Subcommittee hearing there was still concern for the future of parts of the U.S. textile and apparel industry, but there was more reason for optimism than a few years ago. "While textile producers are making significant investments, they could do more," OTA analyst Henry Kelly said. The Congressional Budget Office (CBO), the nonpartisan budget analysis arm of Congress, said federal loans or loan guarantees would be preferable options for Congress rather than increased trade protection which could lead to foreign retaliation. CBO analyst Edward Gramlich said past trade protections, first imposed in the 1950's have had only a small benefit for profits and investments of domestic firms. Trade Subcommittee chairman, Rep. Sam Gibbons, said the agencies analyses seemed to agree with his opinion against congressional approval of protectionist textile quota legislation aimed mainly at Western Europe, Japan and other Asian textile producing countries. President Reagan last year vetoed a textile protection bill but it was reintroduced in this session of Congress and is expected to be voted on in the House this year. However, approval this year is in doubt because passage of a major trade bill without specific protections for textiles showed a weakening of support for the legislation. Most U.S. producers have fallen behind other foreign producers in the use of modern textile and apparel production equipment and net imports are growing faster than the domestic markets, Kelly said. He added that private investment in the textile and clothing industry in 1983 of 0.5 pct was less than one-seventh the average manufacturing investment of 3.9 pct. Despite existing import quotas and tariffs, imports of textiles grew 26 pct in 1986 and imports of apparel grew 14 pct while U.S. production rose only 1.9 pct. "The traditional industry seems destined to be replaced by new technology, imports, or some combination of both. While the industry may not be able to compete in all domestic markets that it enjoyed twenty years ago, the results of our research indicate that portions of the domestic market can be recovered, and that exports can be expanded," Kelly said.  
SHULTZ PREDICTS RAPID NARROWING OF U.S. TRADE GAP. Secretary of State George Shultz said the U.S. Would erase its large foreign trade deficit faster than many predicted, and the consequences for its trade partners might be traumatic. "The U.S. Economy will inevitably make the adjustment necessary to move from a deficit to a surplus trade balance in order to service our growing foreign debt," he told a conference attended by the six members of the Association of Southeast Asian Nations and their leading Western friends. "In my view, this will happen more rapidly than many observers now predict." "The universal strategy of aggressive export-led growth is becoming less effective," Shultz said. "It is not arithmetically possible for every country in the world to be a net exporter at the same time. The U.S. Deficit, which we all decry, has been in a sense the place into which everyone's export-led strategy for growth has gone." "The huge surpluses of Japan and (West) Germany have fed on this deficit, so something will have to give and it will be possibly a traumatic experience," he added. "While you must keep up the pressure on us to eschew protectionist policies, you must act too," Shultz said. "I can do a better job of convincing the Congress to leave our door open to imports if more of our trading partners open their doors wider," he told the group, which included representatives from Australia, Canada, Japan, New Zealand and the European Community.  
TOSHIBA, SHARP RESTRAIN LAP-TOP PC EXPORTS TO EC. Toshiba Corp <TSBA.T> and Sharp Corp <SHRP.T> decided to maintain exports of lap-top personal computers to the European Community (EC) at last year's levels, despite the halt of shipments to the U.S., Company spokesmen told Reuters. They said the voluntary restraints were aimed at averting EC sanctions urged by European computer makers. The Europeans feared Japanese personal computers would flood EC markets after Washington imposed 100 pct tariffs last April. Toshiba and Sharp together control about 40 pct of the personal computer market in the EC, the Sharp spokesman said. Toshiba said exports of T1100 and T3100 lap-top computers would continue at 5,000 units a month for the time being. Sharp said exports to the EC of PC 7000 series lap-top personal computers would continue at last year's level of 12,000 to 16,000 units a year. Washington imposed the tariffs because of Japan's alleged failure to uphold a 1986 agreement on semiconductor trade.  
U.S. SENATORS PROPOSE BAN ON TOSHIBA IMPORTS. Three U.S. Senators said they will propose a temporary ban on imports of all Toshiba products due to the company's illegal sales of sensitive high-technology goods to the Soviet Union. Senator Jake Garn, John Heinz and Richard Selby said at a hearing of the senate banking committee on export control, they will offer the proposal as part of a major trade bill when it is brought before the senate this summer. Garn, a Utah Republican, said "I am talking about specific retribution on a company that endangers the security of their own country and ours."  
EUROPEAN COMMUNITY CRITICISES U.S TRADE MEASURES. The European Community (EC) accused the United States of violating a political commitment to free trade through practices including a tax on imported gasoline and a customs user fee. EC ambassador Tran Van-Thinh made the formal charge to the surveillance body of the General Agreement on Tariffs and Trade (GATT), GATT spokesman David Woods told reporters. Woods also said the EC was joined by the United States in criticising Brazil for extending its list of products for which import licenses have been temporarily suspended, so as to improve its balance of payments. The United States charged Japan with violating GATT rules by restricting imports of agricultural products through an import licensing system. The United States asked for consultations with Tokyo on the issue. Tran charged that the trade measures contravened a political commitment to halt and reverse trade barriers, pledged by ministers in Punta del Este last September. When ministers established the four year Uruguay round to negotiate freer trade in 13 areas, they set up the GATT surveillance body to monitor this commitment, known in GATT jargon as "standstill and rollback." Tran criticised Washington for the "superfund" tax on oil imports, a customs user fee, and the removal of a special machine tool (known as category FSC34) from its government procurement list for reasons of national security. Warren Lavorel, a U.S. Trade official, defended the policies, saying they did not violate GATT trade rules. The surveillance body will send a record of today's talks to the Trade Negotiating Committee, which oversees the round, to decide any further action on the charges. The oil tax and customs user fee have already been the subject of formal GATT dispute panels set up outside the Uruguay Round to rule on the legality of the practices. The ruling GATT Council yesterday adopted a dispute panel's report and ruled that the U.S. Superfund tax on oil imports breached trade rules. It called on Washington to modify its legislation. Mexico and Canada, along with the European Community, brought the dispute to the GATT last year.  
U.S. SAID UNFAIRLY PROTECTING DEFENSE INDUSTRY. Britain's Defence Minister George Younger said the U.S. Was unfairly protecting its defence industry, and this could lead to British firms demanding counter-measures. Younger told a U.S. Chamber of Commerce meeting that U.S. Legislators were failing to realise "the true nature of the two-way street in terms of ideas, technology and equipment. A British parliamentary report said that up to March British firms had been awarded just 34 mln dlrs worth of contracts for the Strategic Defence Initiative, compared with the 1.5 billion dlrs Britain had hoped to secure. The committee said U.S. Technology export restrictions and "selectiveness" towards foreign contractors had denied British competitors more lucrative orders and largely excluded them from technological research for SDI. Younger said London had given U.S. Companies contracts under conditions of fair and open competition. "All we ask is for our companies to be given similar opportunities," he added. If new American legislation aimed at curbing unfair subsidies was used to exclude foreign suppliers it would not be surprising if British firms pressed for retaliatory measures, Younger said.  
U.S.-CANADA TIES SEEN WORSE WITHOUT TRADE PACT. U.S.-Canadian ties could worsen if the two nations are unable to reach a free trade pact, according to a study published by two nonpartisan public policy research groups. The Cato Institute of Washington and the Fraser Institute of Vancouver said removing the remaining tariffs on cross border trade would benefit both countries. But Cato chairman William Niskanen added "the two nations' generally harmonious trade relations are probably not sustainable without a new agreement." The United States and Canada, whose cross-border trade totaled about 125 billion dlrs last year, have been holding talks since last June on a pact to end the few trade barriers remaining between their two countries. The U.S. put a deadline on the talks of October 1, but both sides have said an agreement is likely despite tough bargaining remained. Niskanen said if no pact is reached, bilateral trade ties could deteriorate because of Congressional pressure on President Reagan to implement trade laws more aggressively, and this could hit some Canadian trade practices. He noted Canada is seeking foreign investment in its auto industry, which could put strains on the considerable bilateral free trade in U.S. and Canadian autos and parts. Niskanen also said the Canadian government is vulnerable to a resurgence of economic nationalism which could restrict U.S. exports to Canada. A free trade pact, backed by President Reagan and Prime Minister Brian Mulroney, would open new markets for Canada and enable its industries to achieve economies of scale, which would also help it widen exports worldwide, he said. It would also increase the gross national products of both countries. Niskanen said the goal of a pact should be to end all tariffs within 10 years, lower subsidies on exports, set rules for trade in services and investments, end curbs on government procurement and agree ways to resolve trade disputes.  
SHULTZ WARNS ASEAN OF LOOMING TRADE PROBLEM. U.S. Secretary of State George Shultz warned members of the Association of Southeast Asian Nations (ASEAN) they could no longer rely on increased exports to the U.S. For growth. "Given the importance of exports, particularly export manufactures, to all of your countries, you are going to have to work hard to diversify your markets," he said. "While you may be able to maintain your current market share in the U.S., You clearly will not be able to look to the U.S. To take major increases in your exports," he added. Shultz told the foreign ministers of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand the U.S. Would cut its huge foreign trade deficit more rapidly than many now believed. He said ASEAN's looming trade problems would not necessarily stem from protectionist legislation now being contemplated by Congress, "but simply because of the adjustments the U.S. Economy will have to make in order to service our large and growing external debt." Shultz said the U.S. Deficit had resulted not from falling exports but from higher imports that had fuelled world growth.  
JAPAN'S JUNE INTERIM TRADE SURPLUS NARROWS. Japan's custom-cleared trade surplus narrowed to 1.61 billion dlrs in the first 10 days of June from 1.97 billion a year earlier, the Finance Ministry said. The June interim surplus compares with a 1.76 billion dlr surplus in the same May period. FOB exports in the first 10 days of June rose 17.6 pct from a year earlier to 6.05 billion dlrs while CIF imports rose 39.6 pct to 4.44 billion. The average yen/dollar rate used for the figures was 141.04 yen against 169.03 a year earlier.  
JAPAN MUST TRY HARDER TO CUT SURPLUS - MINISTER. Japan must try harder to reduce its trade surplus or the yen will come under renewed upward pressure, Economic Planning Minister Tetsuo Kondo. He told a press luncheon he hoped Japan could cut its current account surplus by some 10 billion dlrs a year until it is reduced to some 50 to 60 billion dlrs. In the fiscal year ended March 31 the surplus totalled 93.76 billion dlrs, or about 4.5 pct of GNP. The 6,000 billion yen economic stimulation package the government unveiled late last month would help slash Japan's current account surplus by five to six billion dlrs, he said.  
REAGAN SAYS TRADE BILL FACES VETO IN PRESENT FORM. President Reagan said he would veto a House-passed trade bill requiring mandatory retaliation for "unfair trade" if it reached its desk in its present form. In a statement at a White House meeting with Senate Republicans on the legislation, he said: "I would have no choice but to veto that bill in its present form." He said the measure "would move us exactly in the wrong direction" towards high tariffs, trade barriers, trade distorting subsidies, slow growth and crimped world markets, and would destroy jobs.  
AFRICAN STATES AGREE TO REGIONAL TARIFF CUTS. Fifteen countries in Eastern and Southern Africa have agreed to cut tariffs on regional trade by 10 pct every two years up to 1996. A statement by the Preferential Trade Area (PTA), which seeks to create a common market stretching from Ethiopia in the north to Lesotho in the south, said the governments would make the first tariff cut next year. In 1996 they would assess the impact of the tariff reductions and work out a new timetable for the complete elimination of all barriers to trade by the year 2000. The PTA, set up in 1982, groups Burnudi, the Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Rwanda, Somalia, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. PTA sources said the agreement averted a split between members wanting more progress towards free trade and weaker states concerned about the effects on customs revenue. The reductions cover only a common list of 300 or so widely traded commodities and goods but PTA sources said the organisation planned to expand the list to include 425 items.  
CIVIL SERVICE STRIKE DELAYS U.K. TRADE FIGURES. Civil service industrial action started early this month will delay the publication of May's U.K. Overseas trade figures, which had been due out next Thursday, a Trade and Industry Department statement said. A department spokesman said the figures will probably be put back by about a month. The June trade figures, due in late July, will also be delayed, he added.  
LATIN, CARIBBEAN NATIONS OPPOSE TRADE BILLS. A group of Latin American and Caribbean nations formally opposed trade legislation pending in Congress, saying it would curb their exports, slow development and hinder its ability to repay foreign debt. Mario Rodriguez Montero, president of an Organization of American States special committee on trade, said he was aware of the large U.S. trade deficit, but added "the region should not be the one affected by the trade bills." He said the causes of the deficit were the strong dollar and the budget deficit, and "it is regrettable to solve it by a trade bill that would only serve private U.S. interests." Rodriguez made the comment at a news conference after two days of meetings with U.S. officials on trade bills now in Congress that are designed to reduce the U.S. trade deficit, which last year hit a record 166.3 billion dlrs. Congressional observers say the bills are aimed mainly at Japan, Taiwan, South Korea and a few other nations with large, annual trade surpluses with the United States. Mexico, Brazil and Venezuela are the only Latin nations with large trade surpluses last year with the United States, but even Mexico, with the largest, had a surplus of only 5.2 billion dlrs, against Japan's of 58.6 billion dlrs. The European Community has also opposed the bills. Rodriguez said the Latin and Caribbean nations backed the Reagan Administration's opposition to many of the sections in the legislation, including those to curb imports and to require retaliation for foreign unfair trade practices. He told reporters the committee would likely mount a campaign to fight the legislation when it comes up for debate on the Senate floor, expected next week. Rodriguez said "the region needs trade to continue development.  We hope this need will not be affected negatively by trade legislation." Rodriguez said: "we need to keep the market opens - especially the U.S. market - to obtain the necessary foreign exchange not only to service the debt but also to continue national development progress." President Reagan has said he would veto any legislation he termed "protectionist," and his aides now are mounting a effort to water down some of the objectionable provisions in the legislation. Asked whether Reagan was ready to cast a veto, Rodriguez said as yet "the administration is not in a veto frame of mind."  
U.S. ASKS CONGRESS TO REVISE TARIFF CATEGORIES. The Administration asked Congress to replace the U.S. tariff schedule with a new system to bring it into line with international tariff categories, U.S. Trade Representative Clayton Yeutter said. The new system will add such items as fiber optics and more accurately define new composites, items not widely traded when the current schedule was devised some 30 years ago. Yeutter said the Harmonized System, as the new schedule is called, will change tariff categories and definitions to meet the present-day needs of exporters and importers, but they should pay about the same rates of duties. Yeutter said, "American exporters will find it far easier to deal with one standardized worldwide system than the variety of differing systems which they now face." He said the new system ended 12 years of multinational negotiations to create the unified tariff schedule. Yeutter said government and business moves are based on data from tariff schedules and the new system will improve knowledge of trade flows and the quality of decision-making. He said 56 nations pledged to bring their standards under the new system, with about half expected to join the system by January 1988.  
BANGLADESH'S TRADE GAP TO WIDEN IN 1987/88. Bangladesh's trade gap is expected to widen in fiscal 1987/88 beginning on July 1 after the government relaxed restrictions on some imports including luxury cars. The country has set its export target for the year at 1.1 billion U.S. Dlrs against imports of 1.805 billion dlrs, compared with 1986/7's one billion dlrs of export earnings and 1.113 billion dlrs of imports. Commerce Minister Mohammad Abdul Munim said the changes were aimed at encouraging export oriented industries to boost foreign exchange earnings and imports of essential machinery and raw materials, to increase industrial production. The government was easing procedures to enhance incentives especially for exporters of textiles and frozen food and importers of industrial machinery and raw materials, Munim told reporters. Commerce Ministry officials told Reuters the import policy covered only commercial imports amounting to 1.805 billion dlrs. Imports of capital machinery and foodgrains by the government were not included in the policy, they added. They said the country's total import bill (both commercial and other imports) was expected to reach 2.7 billion dlrs in the new year compared with 2.4 billion dlrs in 1986/87. The minister said ending restrictions on imports of cars and dropping 50 pct sales tax on small cars would not harm the economy. Munim said Bangladesh feared a further drop in prices for its main export jute, "which will certainly affect our export earnings" in the coming year. Bangladesh's jute exports fell to 410 mln dlrs from 500 mln in 1986/87, according official figures. But Munim said exports of non-traditional items, which accounted for over 40 pct of total exports this year, would play a key role in achieving the 1987/88 export target.  
EC, U.S. REMAIN DIVIDED OVER PASTA DISPUTE. Top-level talks last week between the European Community (EC) and the United States failed to resolve a dispute over pasta which may provoke new trade frictions next month, diplomatic sources said. The U.S. Insists the EC complies with what it regards as an unambiguous ruling from the world trade body GATT and dismantles an export subsidy system which has led to Italy taking an increasing share of the U.S. Pasta market. The sources said the EC, which currently provides subsidies of around 16 cents a pound, offered a compromise in last week's talks in Brussels but that this was rejected by the U.S. U.S. Assistant Special Trade Representative Jim Murphy has returned to Washington ahead of a theoretical July 1 deadline for agreement, set last August when the two sides resolved a related dispute over EC restrictions on U.S. Citrus imports. The diplomatic sources said the citrus issue could be reopened if the pasta dispute was not solved quickly. It was also possible the U.S. Would reimpose a 40 pct tariff on EC pasta, lifted when the citrus row was settled. But the two sides may agree to extend the deadline for a few days as EC Commissioners Willy de Clercq and Frans Andriessen are due to visit Washington from July 7 to 10.  
German May trade surplus 10.6 billion marks (April. surplus 8.9 billion) - official  German May trade surplus 10.6 billion marks (April surplus 8.9 billion) - official  
ARMISTICE ELUDES EC AND U.S. IN SPAGHETTI WAR. Talks between the European Community (EC) and the United States have failed to settle a trade dispute over pasta, an EC Commission spokesman said. Diplomatic sources said the dispute could provoke new trade friction unless it was settled soon. Washington is insisting that the EC comply with what it regards as an unambiguous ruling from the world trade body GATT and cut export subsidies which have allowed Italy to take an increasing share of the U.S. pasta market. The EC provides subsidies of about 16 cents a pound on pasta exports. The spokeswoman said the talks foundered on the question of how much the subsidy should be cut.  
ISRAEL MINISTER SEES INCREASED EXPORTS TO U.S.. Israel's exports to the U.S. can and must double over the next five years if the mideast nation's goal of economic independence is to be achieved, said Gad Yaacobi, Israeli minister of Economy and Communication. Speaking before an American-Israel Chamber of Commerce seminar, Yaacobi said that in 1986 Israeli exports to the U.S. were over 2.3 billion dlrs or about one-third of Israel's total exports, while imports from the U.S. were around 1.8 billion dlrs or roughly one-sixth of the total. "I am convinced that Israel exports to the U.S. can reach five billion dlrs in the next five years, if we learn to function in the American marketplace and place greater emphasis on product quality," Yaacobi said. While the weakening of the dollar vis-a-vis European currencies is a "bottleneck to increasing exports to the U.S.," Yaacobi said he expects Israel to extend its recent trend toward higher U.S. exports. In the last ten years, Israeli exports to the U.S. rose fivefold, from 417 mln dlrs to 2.3 billion in 1986, while imports rose from 888 mln dlrs to 1.8 billion last year. Yaacobi said export growth must increase ten to eleven pct annually, the rate achieved until the 1973 Yom Kippur War. He said that the U.S./Israel Free Trade agreement, passed last year and eliminating all duties and other commercial restrictions between the two nations through 1994, would continue to facilitate the desired export growth. Dual agreements included in the FTA allow Israel to act as an economic bridge between the U.S. and Europe, enabling U.S. firms to export to Europe at lower cost if a certain percentage of the exported is produced in Israel, and vice-versa. Yaacobi said that tensions among the nations of the middle east was one of the main reasons Israel had not yet been able to achieve its economic potential. Since 1973 the U.S. has given Israel 25 billion dlrs in aid, but most of it went to defense expenditures and financing military conflicts "which were imposed on Israel," he said. Short of achieving Israel's full growth potential, however, Yaccobi said it would still be possible to achieve economic independence by 1993 or 1994, based on the assumption that exports can be doubled from 1986 levels in that time period.  
LYNG DEFENDS U.S. EXPORT SUBSIDY PROGRAM. U.S. Agriculture Secretary Richard Lyng said the United States will continue its policy of subsidizing farm exports to regain lost markets until there is a global agreement to end such subsidies. In an interview with Reuters, Lyng also acknowledged he was troubled by the prospect that the export enhancement program (EEP) could prove so indispensable to boosting U.S. exports that the U.S. would have difficulty abandoning it. "Yes, I'm troubled with that a little bit," he said. "There's no question about it, the longer you feed the calf on the cow, the longer it is to wean it." In recent months, USDA has offered subsidies on a growing list of commodities to an increasing number of countries. Lyng called U.S. and European Community export subsidies "just plain nonsensical as a long-term policy" and said he saw an end to the expansion of the EEP. "I'm sure there's an end to the expansion, but we are doing this to accomplish our goal which is to regain the markets that we've lost, to keep our products competitive and to let those, particularly the European Community, who, we are convinced, are the worst offenders in terms of the export subsidization, that we are prepared to continue to do this until we can come to some agreement to put an end to it," he said.  
ECUADOR POSTS 71.3 MLN DLR 8-MTH TRADE DEFICIT. Ecuador posted a trade deficit of 71.3 mln dlrs in the first eight months of 1987, compared with a surplus of 468.6 mln dlrs in the same period of 1986, central bank figures show. Ecuador suspended oil exports, which made up 55 pct of the value of its total exports in 1986, for five months this year after an earthquake in March shattered the country's pipeline. The central bank said the value of exports from January to August 1987 stood at 1.132 billion dlrs and imports 1.204 billion dlrs. Net international monetary reserves declined to 57.5 mln dlrs at end-September from 146.8 mln dlrs at end- September 1986.  
BRAZIL'S SEPT TRADE SURPLUS HIGHEST OF THE YEAR. Brazil's September trade surplus was the best so far this year, totalling 1.494 billion dlrs, compared with 1.434 billion dlrs in August and 540 mln dlrs in September last year, Banco do Brasil's Foreign Trade Department (Cacex) director Namir Salek said in a news conference. September exports were 2.694 billion dlrs, slightly down from 2.76 billion dlrs in August. Imports in September amounted to 1.2 billion dlrs, against 1.32 billion dlrs in August. Salek said the accumulated surplus in the Jan-Sept period was 7.857 billion dlrs, compared with 8.667 billion dlrs in a similar 1986 period. Coffee accounted with 320 mln dlrs of exports, up from 222 mln dlrs in August and 212 mln in September 1986, Salek said. The Cacex director said he expected the country's trade surplus to average 800 mln dlrs in the remaining three months of the year, estimating the year's overall surplus to reach 10.2 billion dlrs, from 25.6 billion dlrs worth of exports and 15.4 billion dlrs of imports. He attributed the good surplus on exports of manufactured and semimanufactured goods. He mentioned car exports, which accounted alone with sales of 617 mln dlrs in the Jan-Sept period, against 194 mln dlrs in a similar 1986 period.  
U.S. MAY END ADDITIONAL SANCTIONS AGAINST JAPAN. The United States may lift an additional 84 mln dlrs in trade sanctions against Japan later this month, Reagan Administration officials said. President Reagan imposed 300 mln dlrs in sanctions on Japanese goods last April for its failure to honor a 1986 agreement to end dumping semiconductors in the U.S. and third country markets and to open its home market to U.S. goods. The move raised tariffs to 100 pct from about five pct on Japanese color television sets, hand-held power tools and portable computers. Reagan lifted 51 mln dlrs of the sanctions last June  after Japan ended selling the semiconductors on the U.S. market at below production costs. Semiconductors are the small silicon chips used for memory and recall purposes in a wide variety of computers. The Administration officials said Commerce Department monitors showed that Japan was ending its dumping of the semiconductors in third countries, where they had been taking sales away from American-made semiconductors. They said it was likely the 51 mln dlrs in sanctions would be lifted by the end of the month. The United States and Japan remain at odds over opening the closed Japanese markets to U.S. goods. U.S. and Japanese officials reviewed Japan's compliance with the agreement earlier this week. The periodic reviews are to continue and the remaining sanctions to stay in force, the officials said, until Japan is in full compliance with the semiconductor agreement.  
CANADA SEEKS FIVE YEAR FARM REFORM PLAN. Canada will propose at the new round of international trade talks that most trade-distorting farm subsidies be phased out over a five year period, Trade Minister Pat Carney said. "Agricultural subsidies and trade barriers have created a vicious circle which continues to cause problems of overproduction and low commodity prices," Carney told the House of Commons. Carney was outlining the government's new position on the farm trade problem that was tabled on Tuesday in Geneva in the multilateral talks under the GATT (General Agreement on Tariffs and Trade). While few details were released, Carney said the government would also be pressing for an improvement in market access and new measures to ensure countries do not erect artificial barriers. "Under the Canadian proposal, all countries would have to ensure that domestic policies and programs to address the specific needs of their farm sectors do not distort trade," a government background paper said. "Furthermore, in assessing the trade impact of programs, credit could be given to countries which effectively control the output of farm products," the papers said.  
US SAYS CANADIAN, ISRAELI PACTS SHOULD SPUR TRADE. Trade Representative Clayton Yeutter said on Monday that the U.S. free trade agreements with Canada and Israel should help to pave the way for liberalizing the global trading system. He said the Canadian and Israeli pacts will not set back worldwide reform efforts under the General Agreement on Tariffs and Trade (GATT) as some critics feared but help them. The GATT talks began a year ago in Punta del Este, Uruguay to liberalize the global trading system and to include in it trade in agriculture and services such as banking. Yeutter made his remarks at a U.S.-Israeli trade meeting marking the second year of their bilateral accord. The Canadian-U.S. pact, signed by two sides two weeks ago, has yet been approved by the U.S. Congress and Canadian Parliament. The two free trade agreements (FTA) would gradually remove tariffs and other barriers to cross-border trade in goods and many services. Yeutter said in the aftermath of the Canadian and Israeli pacts "other countries have realized that if they want to continue to have access to the world's largest market, they had better get serious about improving the GATT." The pact with Israel, he said, is gradually increasing shipments both ways and the Canadian pact will substantially increase the gross national products in both countries. Yeutter also said the Canadian and Israeli pacts should serve as important precedents for progress in GATT. Yeutter said, "increasing trade is one of the keys to enhanced political and economic stability around the globe." He said, "a stronger GATT will enhance prosperity, not only for advanced industrial nations, but also for other countries that need to increase trade in order to better their standards of living." Yeutter added it was important not to risk the progress made in the Israeli and Canadian trade pacts by resorting to protectionism. He was referring to trade legislation pending in Congress that would force the United States to take retaliatory actions against nations with large trade surpluses with the United States if the countries practiced unfair trade. The legislation was prompted by a growing U.S. trade deficit that hit 156 billion dlrs last year and is still rising. Yeutter said the pressures for Congress to act were hard to resist, but the pending legislation would undermine President Reagan's efforts to liberalize the world trade. Yeutter renewed the threat of a White House veto. He said, "President Reagan will veto any bill that contains serious flaws, and I believe that veto would be sustained."  
EC, U.S. PLAN HIGH-LEVEL TRADE TALKS. The European Community is willing to offer limited concessions to the United States on one of two major issues which threaten to poison their trade relations next year, an EC commission spokesman said. He said the offer would be made at a meeting later this month between U.S. Trade Representative Clayton Yeutter and EC External Relations Commissioner Willy de Clercq. EC Farm Commissioner Frans Andriessen told agriculture ministers meeting in Luxembourg that the EC is willing to make some temporary arrangements to lighten the impact on U.S. Exports of an EC plan to ban the sales of meat from animals fed with growth hormones, the spokesman said. Washington has said it will take trade reprisals if the EC proceeds with the ban from January 1 and if European countries do not quickly cut back what it sees as unfair subsidies to the makers of their Airbus airliner which are harming U.S. Manufacturers. It claims the hormones ban has no scientific basis and will rob it of 130 mln dlrs' worth of exports a year. Diplomatic sources said the Yeutter-de Clercq meeting will take place in London and will also involve the aerospace ministers of France, Britain, West Germany and Spain, the countries involved in the Airbus project.  
REAGAN CALLS FOR VIGILANCE ON CERTAIN EXPORTS. President Reagan said the Commerce Department should be vigilant in preventing the flow of strategic technology from reaching the the Soviet Union and other communist countries. He was speaking at the swearing in of C. William Verity as Secretary of the Commerce Department. Verity said the U.S. should make certain that militarily sensitive high technology does not wind up in communist nations. But he also said the U.S. must reduce the list of products of a nontechnological nature, thereby allowing manufacturers to increase exports and jobs.  
U.S. HOUSE SPEAKER DENIES TRADE BILL HURT STOCKS. House Speaker Jim Wright dismissed charges that the trade bill before Congress contributed to the fall in stock prices on Wall Street. "That is utterly ridiculous," the Texas Democrat told reporters. Treasury Secretary James Baker and other administration officials over the weekend pointed to the pending legislation -- which they brand too protectionist -- as a key factor in the record-setting drop.  
CAIRNS GROUP SAID INFLUENTIAL IN TRADE TALKS. Australian Minister for Trade Negotiations Michael Duffy said his country and Third World commodity producers have formed an effective lobby group against farm export subsidies and market access restrictions. Duffy told a press conference the Cairns Group of 14 major agricultural producers, to which Australia and Thailand belong, has emerged as an important third force in any multilateral trade talks. "There's no doubt that the Cairns Group is being seen as a third force to be reckoned with both inside the General Agreement on Tariffs and Trade and in other international trade negotiations," he said. Duffy, here on a three-day visit after talks in the United States, The European Community (EC) and Latin America, said considerable progress has been made by the group towards fighting costly protectionist policies pursued by developed countries. The minister said the EC Commission's new farm trade paper will recognise the heavy financial burdens imposed by its Common Agricultural Policy and its future expansion. He said the Reagan Administration has also displayed a determination to resist the currently strong protectionist sentiment in the U.S. Congress.  
PHILIPPINE TRADE GAP WIDENS IN JANUARY-AUGUST. The Philippines' trade deficit widened to 542 mln dlrs in the eight months to end-August from 159 mln dlrs in the same 1986 period, the National Statistics Office said. It said exports in the eight-month period rose to 3.58 billion dlrs from 3.18 billion in 1986, while imports rose to 4.12 billion dlrs from 3.34 billion a year earlier. The country's trade deficit totalled 202 mln dlrs in 1986.  
AUSTRALIAN FOREIGN SHIP BAN ENDS BUT NSW PORTS HIT. Tug crews in New South Wales (NSW), Victoria and Western Australia yesterday lifted their ban on foreign-flag ships carrying containers but NSW ports are still being disrupted by a separate dispute, shipping sources said. The ban, imposed a week ago over a pay claim, had prevented the movement in or out of port of nearly 20 vessels, they said. The pay dispute went before a hearing of the Arbitration Commission today. Meanwhile, disruption began today to cargo handling in the ports of Sydney, Newcastle and Port Kembla, they said. The industrial action at the NSW ports is part of the week of action called by the NSW Trades and Labour Council to protest changes to the state's workers' compensation laws. The shipping sources said the various port unions appear to be taking it in turn to work for a short time at the start of each shift and then to walk off. Cargo handling in the ports has been disrupted, with container movements most affected, but has not stopped altogether, they said. They said they could not say how long the disruption will go on and what effect it will have on shipping movements.  
AUSTRALIAN FOREIGN SHIP BAN ENDS. Tug crews in New South Wales (NSW), Victoria and Western Australia yesterday lifted their ban on foreign-flag ships carrying containers but NSW ports are still being disrupted by a separate dispute, shipping sources said. The ban, imposed a week ago over a pay claim, had prevented the movement in or out of port of nearly 20 vessels, they said. The pay dispute went before a hearing of the Arbitration Commission today. Meanwhile, disruption began today to cargo handling in the ports of Sydney, Newcastle and Port Kembla, they said. The industrial action at the NSW ports is part of the week of action called by the NSW Trades and Labour Council to protest changes to the state's workers' compensation laws.  
INDEPENDENT CHAIRMAN FOR DUTCH CARGO DISPUTE. The two sides in the Rotterdam port general cargo dispute have agreed to appoint an independent chairman, Han Lammers, to preside over future meetings, employers' spokesman Gerard Zeebregts said. Lammers, Queen's Commissioner for the province of Flevoland, will not act as a mediator but will draw up an agenda and procedures for meetings between the employers and unions on a work-practice agreement and proposed redundancies. Two months of strikes in the sector began on January 19 in protest at employers' proposals for 350 redundancies from the 4,000-strong workforce this year. The strikes were called off by the main port union FNV on March 13 following an Amsterdam court's interim injunction against the redundancies on procedural grounds. The court is due to make a final ruling on May 7 but Zeebregts said he expected the judgment to go against the employers and they were therefore very likely to restart the complicated legal redundancy procedures in the near future. Meanwhile, the dispute over a new work-practice agreement in the port's grain sector continued, with 30 maintenance workers on strike, although loading was not affected, a spokesman for Graan Elevator Mij, the largest employer in the sector, said. The employers have written to the union asking it to reconsider its position and a meeting of union members has been called for tomorrow.  
TODD SHIPYARDS <TOD> STRUCK ON WEST COAST. Todd Shipyards Corp said production workers represented by the multi-union Pacific Coast Metal Trades District Council at its San Francisco division struck on April Six. It said negotiations are expected to resume at the end of this month. Todd also said the collective bargaining division in effect at its Galveston Division expires April 17, and negotiations with the Galveston Metal Trades Council are continuing. The company said results of balloting on a new collective bargaining agreement proposal in its Seattle Division are expected to be tabulated at the close of business tomorrow. The Pacific Coast Council has recommended acceptance of that proposal by membership, Todd said.  
AUSTRALIAN UNIONS AND NSW GOVERNMENT REACH DEAL. Union and New South Wales government officials have reached a compromise in a dispute over workers compensation, averting increased industrial action in the state, union sources said. But some unions, including those of building and mining workers, said they were dissatisfied with the deal and would continue their strikes for a few more days. State officials said the government had agreed to revise its proposals to cut compensation and would allow slightly higher cash benefits for injured workers. Under the original proposal, which sparked strikes and other industrial action in the state on April 7, workers' compensation would have been cut by one third. Full details of the compromise package are not yet known. The Labour Council, affiliated to the Australian Council of Trade Unions (ACTU), had threatened to paralyse New South Wales unless the government modified its pending legislation on the issue. State officials said the only sectors affected in the past three days were some government building projects, railway freight movement and cargo handling in Sydney's ports.  
IRAN SAYS IT WILL COMBAT GULF INTERVENTION. Iranian foreign minister Ali Akbar Velayati warned that Iran would combat any superpower intervention in the Gulf. "Iran, which is the most powerful (country) in the Gulf... Will not allow the superpowers or any other foreign forces to interfere in the region," he said. Velayati, visiting the United Arab Emirates on the first leg of a Gulf tour, told reporters Iran had the "capabilities and means" to prevent any interference. President Reagan has pledged to keep the Gulf sealanes open and to protect Kuwaiti tankers from possible Iranian attack.  
MOSCOW SAYS WILL RETALIATE AGAINST GULF ATTACKS. Any Iranian attack on Soviet ships in the Gulf will bring a forceful and violent response, a Soviet foreign ministry official said in an interview published here. Alexander Ivanov, head of the Gulf desk at the Soviet Foreign Ministry, told Al-Rai al-Aam newspaper Moscow "will answer back with force and violence if Iran attempts to attack any Soviet ship or tanker in the Gulf." A Soviet tanker hit a mine in the Gulf last month. Ivanov also accused the United States of stepping up the regional crisis and of failing to exert genuine efforts to end the Iran-Iraq war.  
KUWAIT REJECTS IRANIAN SPY BOAT CHARGES. Kuwait, a target of Iranian anger over the emirate's backing for Iraq in the Gulf war, today rejected charges that fishing vessels seized recently by Iran were spy boats. "There are no bases of truth to the contents of the Iranian accusation on the nature of the operations of the vessels recently taken into custody by Iran. These vessels were out fishing," the Foreign Ministry said in a statement. It said Iranian Charge d'Affaires Mohammad Baqeri was summoned by the Ministry yesterday to confer with Foreign Undersecretary Suleiman Majed al-Shaheen. The Iranian News Agency IRNA said on Sunday Iran had seized seven Kuwaiti speed boats and detained their crew, who confessed to spying for Iraq under the cover of fishing. It said the boats were intercepted in the Khur Abdullah waterway which separates Kuwait and Iraq's Faw peninsula at the head of the Gulf, captured by Iran last year. The Kuwaiti response came as Iranian envoys toured Gulf Arab states saying responsibility for security and stability in the waterway was a regional matter. A U.S. Senate team was scheduled today to meet Kuwait's Crown Prince and Prime Minister Sheikh Saad al-Abdulla al-Sabah and the defence and oil ministers. Today's Foreign Ministry statement, carried by the Kuwait News Agency KUNA, said the recent detention of Kuwaiti fishing vessels by Iran was not the first. Tehran in the past had held back a number of vessels Kuwait had sought to release through diplomatic contacts, it said. "However, Kuwait is perplexed that this time the Iranian charges are accompanied by accusations that the vessels were undertaking espionage activities," it said. Shaheen condemned the detentions and accusations, and asked Tehran to free all fishing boats and sailors held by Iran, the statement said.  
COLOMBO TO DEFEND WATERS, INDIA READIES FLOTILLA. Sri Lanka today ordered its armed forces to defend the island's territorial waters as India prepared to send a flotilla with relief supplies that Colombo says it does not want for the Tamils in the Jaffna peninsula. The sudden crisis between Sri Lanka and its giant neighbour deepened as Prime Minister Ranasinghe Premadasa told parliament: "We have our territorial limits and nobody can be allowed to trespass there ... "President (Junius) Jayewardene has ordered the army, navy and air force to protect the island and its territorial waters," Premadasa said to a round of applause from the house. In New Delhi an Indian spokesman said the plan to send a flotilla of 20 small unarmed boats with Red Cross supplies to Jaffna tomorrow would go ahead despite Colombo's objections. The confrontation was the latest result of the long and bitter conflict between Sri Lanka's Buddhist Sinhalese majority and the Hindu Tamil minority, which has strong ethnic and cultural links with India's 50 mln Tamils.  
NEED FOR BIGGER ALLIED FORCE IN GULF PLAYED DOWN. Secretary of State George Shultz said today that a boost in allied forces in the Mideast Gulf was not vital to protect shipping against attack but that possible allied contributions should be examined. Asked if he saw the need for a greater military presence by the allies in the gulf, Shultz told reporters, "Not necessarily, particularly, so." But he said an adequate force was needed to deter attack and noted that the British and the French, as well as the United States, maintained naval contingents there. "We have to look at things that others might do," he said.  
U.S. TO PROTECT ONLY AMERICAN SHIPS. U.S. military forces in the Mideast Gulf are under orders to protect only American flag vessels and occasional U.S. arms deliveries on other ships to "non-belligerent" states in the area, the Pentagon said today. "No one has ever stated or supported a policy of protecting all shipping in those waters," Pentagon spokesman Bob Sims said as the Reagan Administration drew up plans to increase the protective U.S. military presence in the gulf. Sims denied published reports that U.S. Defense Secretary Caspar Weinberger sought air cover to protect all neutral shipping in the western gulf from attacks by Iran and Iraq. "As we have said repeatedly, only American flag vessels are under our protection with the exception, on a limited case-by-case basis, of ships carrying our Foreign Military Sales equipment to friendly, non-belligerent states in the region," Sims said. U.S. warships in the gulf two weeks ago protected a Kuwaiti ship which sailed to Bahrain with U.S. arms for Bahrain and Kuwait. But Sims said Washington had received assurances that the the arms would not be used elsewhere. He said Kuwait, which is turning 11 oil tankers over to U.S. firms to fly the American flag and be protected by the U.S. warships, is not considered a belligerent despite Iranian charges that Kuwait is supporting Iraq in the gulf war. Kuwaiti tankers have come under repeated Iranian attack. Sims refused to say how the United States will beef up its seven-ship Middle East Task Force in the gulf to protect the 11 Kuaiti tankers. But Pentagon officials said that additional ships and air cover are under consideration.  
LAST-MINUTE OPPOSITION TO GULF BILL ARISES. House Speaker Jim Wright predicted passage of legislation requiring the Reagan administration to provide Congress with a report on its Mideast Gulf policy, but a last-minute revolt by an alliance of liberals and conservatives left the bill's fate in doubt. The legislation was written in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf, which killed 37 Americans, and President Reagan's decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. Since the administration made known its reflagging plans, congressional leaders complained they had not been consulted, and some charged the policy could lead the United States into the 6 1/2-year-old war between Iran and Iraq. The House was to vote today on a bill -- supported by the Democratic and Republican congressional leadership and the administration -- which demanded a report within seven days on plans to meet the security needs of U.S. forces in the gulf. The resolution was expected to pass without controversy today in the House Foreign Affairs Committee before the full House was to take up the bill. But in a surprise move, liberal Democrats and conservative Republicans on the committee joined in an unusual alliance to oppose the resolution. Liberal Democrats said a lack of any restrictions in the bill implied consent to Reagan's policies.  
U.S. HOUSE PASSES GULF BILL DESPITE OPPOSITION. The U.S. House of Representatives approved a bill that requires the Reagan administration to provide Congress with a report on its Gulf policy but does not place any restrictions on its actions. The bill passed 305-102 -- winning a necessary two-thirds of those voting -- despite a last-minute revolt by an alliance of liberal Democrats and conservative Republicans who sought to defeat it as a signal that a growing number of legislators oppose President Reagan's policies in the region. The legislation was passed in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf, which killed 37 Americans, and Reagan's decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. The legislation -- supported by Congress' Democratic and Republican leadership as well as by the administration -- required Defense Secretary Caspar Weinberger to provide a report to Congress, within seven days of enactment, on plans to protect U.S. warships and flag ships in the Persian Gulf. It did not, however, place any restrictions on the administration as it proceeds to reflag the Kuwaiti ships and thus has no immediate effect on U.S. policy. The Senate was expected to approve the legislation this week. The bill would then be sent to Reagan for signature. Supporters of the bill said passage of the bill was only a first step toward a greater congressional involvement in formulating policy. But Democratic critics said the bill did not ask the administration to address tough policy questions in the report.  
U.S. HOUSE PASSES MIDEAST GULF BILL. The House today approved a bill requiring the Reagan administration to report to Congress on its Mideast Gulf policy but not restricting its actions. The vote in favor was despite a last-minute revolt by an alliance of liberal Democrats and conservative Republicans who sought to defeat it as a signal that a growing number of legislators oppose President Reagan's policies in the region. In the Senate, a leading Republican senator, former Senate Appropriations Committee Chairman Mark Hatfield of Oregon, said he would try to prevent consideration of the bill. He said he will put a so-called "hold" on the bill until he finds out whether the War Powers Act applies to protecting Kuwaiti tankers. Congressional leaders complain they were not consulted about plans to put the U.S. flag on Kuwaiti ships and some charged the policy could lead the U.S. into the Iran-Iraq war. Conservative Republicans said increasing the U.S. military obligation in the gulf would place impossible burdens on American servicemen and equipment, and warned it could lead to war. "It is a real snake pit at best and a powder keg that will blow sky-high at worst," said Wisconsin Rep. Toby Roth.  
JAPAN FOREIGN SHIPBUILDING ORDERS FALL IN MAY. New foreign shipbuilding orders received by Japanese yards in May fell to five vessels totalling 188,900 gross tons (gt) from eight ships of 314,000 gt in April, against four ships of 104,500 gt a year earlier, the Japan Ship Exporters Association said. The backlog of orders at end-May was 122 ships of 3.70 mln gt against 125 ships of 3.73 mln at end-April and 233 ships of 5.99 mln a year ago, an association official said. The world shipping recession and the yen's appreciation against the dollar depressed May orders, he said.  
RIO DE JANEIRO DOCKERS STRIKE OVER WAGES. Rio de Janeiro's 3,500 dockworkers went on strike for an indefinite period today to demand wage increases, a spokesman for the dockers said. The Rio dockers did not get support from their colleagues in Santos, Brazil's main port, but the spokesman said they would not return to work unless their demands were met. Earlier this week, some 65,000 dockworkers cancelled a scheduled national strike to pressure port officials to give them a wage increase and other benefits. A Rio port spokesman said the halt would cause daily losses of about 100,000 U.S. dlrs.  
RIO DE JANEIRO DOCKERS STRIKE. Rio de Janeiro's 3,500 dockworkers went on strike for an indefinite period today to demand wage increases, a spokesman for the dockers said. The Rio dockers did not get support from their colleagues in Santos, Brazil's main port, but the spokesman said they would not return to work unless their demands were met. Earlier this week, some 65,000 dockworkers cancelled a scheduled national strike to pressure port officials to give them a wage increase and other benefits. A Rio port spokesman said the halt would cause daily losses of about 100,000 U.S. Dlrs.  
TAIWAN'S EVERGREEN LINE TO GO PUBLIC. Liner shipping specialist <Evergreen Marine Corp>, Taiwan's largest private company, has applied to the Security and Exchange Commission to go public next month, a company spokeswoman told Reuters. She said Evergreen had doubled its capital to eight billion Taiwan dlrs since last August. "The capital increase will boost our operations," she said. She said Evergreen will use the funds raised from the stock market to buy new ships and step up its global services. The spokeswoman said the company posted an after-tax profit of more than one billion dlrs last year on total revenues of 20.46 billion, compared to an after-tax profit of 1.18 billion on revenues of 17.99 billion in 1985. Evergreen has placed newbuilding orders for three 3,428-teu (twenty-foot equivalent unit) fully cellular container ships with the state-owned <China Shipbuilding Corp> for delivery in late 1988. Evergreen has a fleet of 66 container vessels, totalling more than two mln dwt, the spokeswoman said.  
BELGIAN ONE-DAY STRIKE HITS TRANSPORT, SHIPPING. A 24-hour strike by Belgian public employees protesting against a government pay offer disrupted transport and hit ferry services and shipping, port and union officials said. Some cross-Channel ferry services from Ostend were cancelled, the local news agency Belga said. An Antwerp port authority spokesman said electricians came out in support, reducing ship movements to a trickle. Unions said Ghent and other major Belgian ports were also hit. Few trains were running and some early morning flights by Sabena, Belgian's national airline, were cancelled.  
CHINA RESUMES USSR SHIP REPAIRS AFTER 23 YEAR GAP. China has resumed repairs of Soviet ships after a 23 year break caused by the ideological split between the two countries. The New China News Agency said an agreement to resume the business was signed by the two sides on Wednesday in Shanghai, where three Soviet commercial vessels were being repaired. The China Daily said the first two Soviet ships to be repaired in China since 1964 left the ports of Dalian and Xingang last month. Bi Yueran, managing director of China State Shipbuilding Corp's ship repair department, told the newspaper the Soviet Union lacked adequate repair facilities for the more than 600 ships deployed in the far east. Bi said China's yards offered competitive prices, guaranteed quality and prompt delivery.  
SPAIN CARGO FIRMS HIRE DOCKERS TO OFFSET STRIKE. Cargo handling companies said they were hiring twice the usual number of dockers to offset an intermittent strike in Spanish ports. Spanish dockers began a nine-day strike on Wednesday in which they only work alternate hours in protest at government plans to partially privatize port services.  
HIGH WATER EXTENDS RHINE RIVER BLOCKAGE. Rising water levels on the Rhine caused by heavy rain are delaying an operation near Karlsruhe to raise two sunken boats which have blocked the river's main navigation channel since early last week, a Karlsruhe water authority spokesman said. He said two floating cranes were unable to begin lifting the sunken tug Orinoko and its lighter because the water level had reached 815 centimetres and was forecast to rise to 820-830 cm by tomorrow. He was unable to say when the operation might begin. Meanwhile, high water at Cologne has forced vessels to travel at reduced speed, a water authority spokesman in Cologne said. But a water authority spokesman in Duisburg, 60 kms north of Cologne, said vessels there were moving normally.  
RHINE BLOCKED FOR THREE MORE WEEKS - SALVAGER. Dutch salvage firm Smit-Tak said it may take some three weeks to lift the Swiss tug Orinoko and its lighter Pavo which sank 10 days ago at Karlsruhe in West Germany, blocking the Rhine river. Smit-Tak, which with its West German subsidiary Harms Bergung GmbH was commissioned by the local water authorities to raise the vessels, said its lifting fleet was in position and divers had made the first inspection. Smit is still preparing its final salvage plan and said the work would begin on Sunday.  
KUWAIT SAYS IT HAS FULL GULF ARAB SUPPORT. Kuwait, whose shipping has come under repeated attack by Iran, has the full support of Saudi Arabia and other Gulf allies, a senior government official said. Cabinet spokesman Abdul-Aziz al-Otaibi, quoted by the Kuwaiti news agency KUNA yesterday, said Foreign Minister Sheikh Sabah al-Ahmed al-Sabah had told cabinet he had found "complete support...At this delicate phase" during visits to Gulf Cooperation Council (GCC) states. The GCC, an economic and military alliance which has generally supported Iraq over Iran, comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.  
U.S. REASSERTS PLANS FOR DETERRENT ROLE IN GULF. The United States responded to an apparent escalation of Iranian rhetoric with continued assurances that its expanded military force in the Gulf would play purely a deterrent role. "I can only emphasize that our role there is deterrent, that we're going to be assuring safety for American shipping and that that shipping is not related to the war itself," State Department spokesman Charles Redman told reporters. He was asked about Iranian claims that the United States was moving towards the brink of armed conflict with Iran. Tehran Radio quoted defence spokesman Ali Akbar Hashemi Rafsanjani telling a visiting Nicaraguan delegation yesterday, "At the moment the United States is moving towards the brink of an armed encounter with us. "We are not concerned about this and believe that the U.S. Presence in the war will make our nation even more serious. We are determined to stand firm and will certainly win." The United States disclosed last week it was beefing up its Gulf fleet from seven to 10 warships and also sending the refurbished battleship Missouri to patrol just outside the strategic Strait of Hormuz, entrance to the Gulf. The buildup ties in with U.S. Plans to escort Kuwaiti oil tankers which have been re-registered to fly the American flag and gain naval protection against Iranian attacks. Asked about the Iranian rhetoric, White House spokesman Marlin Fitzwater said, "We won't have any comment or response to the Iranian statements. Our position has been made clear about the status of events in the Gulf. We want an end to the war with no winners and no losers and any activities or statements that tend to prolong the war or increase hostilities are not helpful or welcome." Redman said he could not independently confirm reports that Iran has offered to halt attacks on Gulf shipping.  
IRANIAN TANKER REPORTS SIGHTING MINE IN GULF. An Iranian shuttle tanker reported spotting a floating mine in the central Gulf on Tuesday about 50 miles west of Lavan Island, regional shipping sources said. The Khark III, owned by the National Iranian Tanker Co, gave the position of the mine as 27 degrees 14 minutes north, 52.06 east. There was no indication of measures being taken against the mine, which is in Iranian territorial waters.  
NEW CONTAINER CRANES ARRIVE AT TANZANIA PORT. Two large container cranes donated by the Danish International Development Agency (DANIDA) have arrived in Dar es Salaam where they will help to increase the port's cargo handling capacity, port officials said. The two new container cranes join one Danish container crane already installed in the port, which is an important trade outlet for Tanzania, Zambia, Malawi and eastern Zaire. Five more cranes from Finland are due to arrive soon, increasing the container terminal's handling capacity to 120,000 units per year from 30,000 at present, the officials said.  
PENTAGON SAYS U.S. WARSHIPS BEGIN ESCORTING GULF TANKER CONVOY SOUTH FROM KUWAIT.  PENTAGON SAYS U.S. WARSHIPS BEGIN ESCORTING GULF TANKER CONVOY SOUTH FROM KUWAIT  
US SENATE CUTS OFF STALL TACTICS ON GULF BILL. Confronted by new hostilities involving U.S. forces in the Gulf, the U.S. Senate voted to end Republican stalling tactics and limit debate on a measure that could give Congress a larger role in Gulf policy. The measure, however, does not require President Reagan to comply with the 1973 War Powers Act as does a related Senate bill. The controversial War Powers Act could require a pullout of U.S. forces from the Gulf. The Senate voted 67-28 to stop a filibuster and limit debate to 30 hours on a bipartisan measure that requires Reagan to report to Congress on Gulf policy within 60 days and calls for a resolution to be passed in the House and Senate on the situation in the volatile waterway 30 days later. The resolution could be about any Gulf-related issue, including an expression of support or of disapproval for Reagan's policy of protecting 11 Kuwaiti tankers from Iran in the waterway. The Pentagon said the 12th U.S.-protected convoy began moving through the Gulf early Tuesday.  
SAUDI ROLE IN GULF PRAISED BY U.S. OFFICIALS. Saudi Arabian Crown Prince Abdullah bin Abdul Aziz was thanked by the Reagan administration for his country's close, and closed-mouthed, cooperation with Washington in the Gulf, a senior U.S. official said. "The Saudis are being very cooperative. It would be nice if the Saudis would go more public, but it's their real estate," said the official who asked not to be named. He declined to describe what sort of help the Saudis were providing, saying that Saudi officials are reluctant to acknowledge their role in the Gulf where the United States has stationed forces to protect shipping lanes. The prince met Vice President George Bush on Monday after U.S. naval forces attacked offshore Iranian oil platforms in what Washington said was retaliation for an Iranian attack on a ship moored off Kuwait and flying the U.S. flag. Asked at the start of the meeting how he felt about the attack, the prince, who is here on an official visit, replied, "I believe what the United States has done is their responsibility as a superpower." The senior U.S. official said his remark was an endorsement of the U.S. attack.  
ITALY WORRIED AT RISING TENSION AFTER GULF ATTACK. Italian Prime Minister Giovanni Goria told the cabinet on Monday he was worried about the increased tension in the Gulf, but said America's retaliation against Iran had been limited. A statement issued after a cabinet meeting said Goria had been informed by the United States that it would take action against an Iranian target in the Gulf, but had not known beforehand that the action would involve an attack on an oil platform. "The prime minister expressed his concern over the possible consequences of increased tension in the Gulf, at the same time recognizing the limited character of the American military reaction to the attacks it has suffered in the past few days," the statement said. Goria said Italy's own ships were far from the platform at the time of the attack and the fleet had been advised to follow events with caution. Italy has sent eight ships, including three frigates and three minesweepers, to the Gulf to protect Italian merchant shipping there.  
WORLD TELECOMS WATCHDOG RELAXES CAR PHONE RULES. The International Telecommunications Union, which regulates communications worldwide, decided at the end of a five-week conference to allow mobile phone systems to be linked with satellites, telecommunications officials said. Until now, car phones have been linked with land stations and have been limited mainly to urban areas. The new ruling will make it easier for calls to be made from remote regions. The meeting, which finished over the weekend, also decided to allow a "radio determination satellite system," which would enable fleet owners to trace to within about 15 metres the movements of their lorries or cars or ships around the world.  
PENTAGON HAS NO INFORMATION ON IRAN ATTACK RUMORS. A U.S. Defense Department spokesman said he had no information on London oil and stock market rumors that the United States had launched a retaliatory strike against Iran for an attack on Friday that damaged a U.S. shi "I don't have anything," Major Randy Morger said. "I have no information at all." President Reagan said on Sunday he had already made a decision on the U.S. response to Friday's Iran attack but would not say what the decision was. Defense Secretary Caspar Weinberger said on Saturday the attack on a U.S.-flagged ship in Kuwaiti waters on Friday was almost certainly by an Iran Silkworm missile. Some of the rumors in the London markets were that the United States had launched an offshore strike against Iranian missile installations.  
IRAN WARNS U.S. AGAINST RAISING TENSION IN GULF. Iran warned the United States on Monday against exacerbating the Gulf crisis, saying it would endanger American interests. Tehran Radio, monitored by the British Broadcasting Corporation, said a spokesman for Iran's War Information Headquarters was responding "to U.S. Officials' remarks about taking military action against Iran." The radio also quoted an Iranian Foreign Ministry spokesman as saying Iran would respond decisively to any aggressive measure by the United States. The radio said the spokesman made the statement "following the attack on a Kuwaiti ship under the U.S. Flag and comments by American officials on carrying out retaliatory action against Iran." The spokesman said, "Any U.S. Military aggression against Iran will certainly be the beginning of an extensive clash in the Persian Gulf, and amidst this our principled policy is to confront any act which escalates tension."  
ANIMAL FEED SHIP ON FIRE AGAIN AT CHINESE PORT. The Cyprus vessel Fearless, 31,841 tonnes dw, which was on fire, grounded then towed to Yantai, China, in August, had all its cargo reloaded but the cargo in the no. 3 hold caught fire on October 15. The fire was put out with salt water and water from the no.4 hold has spread over most of the cargo. Some water is also in the no.5 hold. Bottom patching was reported complete but only the no.4 starboard wing tank has been pumped out and remains dry. The engine room is flooded to about three metres. The ship was originally loaded with 10,000 tonnes of animal feed.  
JAPAN/INDIA CONFERENCE CUTS GULF WAR RISK CHARGES. The Japan/India-Pakistan-Gulf/Japan shipping conference said it would cut the extra risk insurance surcharges on shipments to Iranian and Iraqi ports to a minimum three pct from 4.5 pct on October 25. It said surcharges on shipments of all break-bulk cargoes to non-Iraqi Arab ports would be reduced to 3.0 pct from 4.5. A conference spokesman declined to say why the move was taken at a time of heightened tension in the Gulf.  
FED EXPECTED TO SET CUSTOMER REPURCHASES. The Federal Reserve is expected to intervene in the government securities market to supply temporary reserves indirectly via customer repurchase agreements, economists said. Economists expect the Fed to execute 2.0-2.5 billion dlrs of customer repos to offset pressures from the end of the two-week bank reserve maintenance period today. Some also look for a permanent reserve injection to offset seasonal pressures via an outright purchase of bills or coupons this afternoon. The Federal funds rate opened at 6-3/8 pct and remained at that level, up from yesterday's 6.17 pct average.  
FED SETS OVERNIGHT SYSTEM REPURCHASES, FED SAYS.  FED SETS OVERNIGHT SYSTEM REPURCHASES, FED SAYS  
FED ADDS RESERVES VIA OVERNIGHT REPURCHASES. The Federal Reserve entered the U.S. Government securities market to arrange overnight System repurchase agreements, a Fed spokesman said. Dealers said that Federal funds were trading at 6-3/8 pct when the Fed began its temporary and direct supply of reserves to the banking system.  
WOJNILOWER SEES DROP IN U.S. INTEREST RATES. The Federal Reserve will promote lower interest rates this year to sustain world economic growth, First Boston Corp managing director Albert Wojnilower said. As much as the Fed would like to take a tough line against inflation, it cannot act to slow the growth of credit without subverting national U.S. economic policy. "On selected occasions when the dollar seems steady, and, because the trade deficit is not responding, the United States decided to push Germany and Japan harder to meet their commitments to economic growth, the Federal Reserve will do its part by moving rates down," Wojnilower said in a report. "Justifiably not anticipating either a recession or seriously higher interest rates, securities market participants have seen little to fear," Wojnilower said. He said last week's "hiccup" in money and currency rates and bond and stock prices was probably caused by Japanese window dressing for March 31 end-of-fiscal-year accounts. Wojnilower said the U.S. probably enjoyed above-average economic growth in the first quarter. However, the pick-up seems to reflect an unsustainable pace of inventory building and the prospect for the full year is still for real gross national product growth of about 2-1/2 pct, he said.  
GERMAN BANKERS' REMARKS REVIVE TALK OF RATE CUT. Remarks by two leading central bankers sparked renewed speculation in financial markets that a cut in the West German three pct discount rate may be under discussion, currency dealers said. Bundesbank board member Claus Koehler said in a speech that monetary growth resulting from speculative capital inflows required cuts in interest rates. Separately, West Berlin state central bank president Dieter Hiss told journalists that the discount rate could fall below its lowest ever point of 2.75 pct. He made clear that he was not making a forecast on interest rates, however. Currency dealers here and in the Far East said the dollar gained slight background support from the speculation. But German dealers noted that the Bundesbank kept the 3.80 pct rate unchanged at which it offered liquidity to the money market this week, dashing some expectations that it may either offer lower fixed rate money or offer a reduced minimum rate and let the strength of banks' demands set the allocation rate. It allocated 6.1 billion marks in new liquidity, much less than the 14.9 billion leaving the market as a prior pact expired. This further weakened sentiment the Bundesbank could move to a more accommodative monetary stance, dealers said. Koehler said in a speech in Surrey, England, speculative capital inflows may cause monetary growth, regardless of whether central banks intervened or exchange rates fell. "In other words, the monetary policy measures required are different from -- and sometimes diametrically opposed to -- those needed when the money stock is increasing as a result of mounting economic activity." Though Koehler was known to be the most liberal of the generally monetarist Bundesbank board, his comments marked the first time cuts in rates had been concretely suggested as a counterpoint to overly strong monetary growth, dealers said. REUTER^M  
SAUDI RATES RISE AS BAHRAIN BANKS CAUGHT SHORT. Saudi riyal interest rates rose as Bahrain-based banks scrambled to cover short positions, dealers said. Several Bahrain banks had been lending in the fixed periods and borrowing in the short dates, but today they found the day-to-day money in short supply, dealers said. "Everybody's stuck in the spot-next," one trader said. Spot-next rose to as high as 6-1/4, six pct from 5-1/4, five pct yesterday, and the borrowing interest spilled over into the periods, with one month rising to around 6-3/16, 5-15/16 pct from 5-15/16, 7/8 pct yesterday. Three months edged up to around 6-9/16, 5/16 pct from 6-7/16, 1/4 pct, while six months was quoted a touch firmer by some banks at seven, 6-3/4 pct. Commercial banks quoted the spot riyal at 3.7500/04 to the dollar after 3.7507/09 yesterday.  
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED. The Bank of France said it left its intervention rate unchanged at 7-3/4 pct when it injected funds in the market against first category paper in today's money market intervention tender. Money market dealers had earlier expressed mixed views on the possibility of quarter point cut. The rate was last adjusted on March 9, when it was cut to 7-3/4 pct from the eight pct rate set in January.  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-174 days  5.00 pct  5.00 pct    30-87 days 175-190 days  5.85 pct  5.82 pct   88-103 days 191-270 days  5.00 pct  5.00 pct  104-179 days 271-288 days  5.92 pct  5.85 pct  180-205 days 289-360 days  5.00 pct  5.00 pct  206-360 days  
SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES. The Student Loan Marketing Association said its rates on short-term discount notes were as follows: MATURITY   NEW RATE    OLD RATE  MATURITY 5-14 days  5.80 pct    5.75 pct     5-14 days 15-360 days  5.00 pct    5.00 pct    15-85 days 5.80 pct    86-91 days 5.00 pct   92-176 days 5.83 pct  177-183 days 5.00 pct  184-360 days  
FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES. The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY   RATE       OLD RATE  MATURITY 33 days   6.00 pct   6.00 pct  33 days  
U.K. CHANCELLOR LAWSON SAYS THERE MAY BE NEED TO CUT. INTEREST RATES IN SOME COUNTRIES  U.K. CHANCELLOR LAWSON SAYS THERE MAY BE NEED TO CUT INTEREST RATES IN SOME COUNTRIES  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-174 days  5.00 pct  5.00 pct   30-174 days 175-190 days  5.88 pct  5.85 pct  175-190 days 191-270 days  5.00 pct  5.00 pct  191-270 days 271-288 days  5.92 pct  5.92 pct  271-288 days 289-360 days  5.00 pct  5.00 pct  289-360 days  
LAWSON SAYS SOME COUNTRIES COULD CUT RATES. Nigel Lawson, Britain's Chancellor of the Exchequer, said some countries may need to cut interest rates with the aim of maintaining exchange rate stability. Speaking to journalists one day after the Group of Seven countries reaffirmed goals set in Paris six weeks ago, he said central banks would continue to intervene "as and when necessary." He said the G-7 countries were concerned that Japan do more to stimulate domestic demand and welcomed measures outlined by Japanese Finance Minister Kiichi Miyazawa yesterday. Lawson said he was still worried about  the risk of a simultaneous recession in the United States, Japan and West Germany, though less so than when he gave his March 17 budget speech to the British Parliament. "If anything I'm a little bit less concerned, but there is still a risk," he said. Asked if the United States should consider increasing interest rates to support the dollar, he said, "If there is a need for changes in relative interest rates, it doesn't need to be a rise in interest rates in the United States." Lawson said there was some concern expressed in yesterday's meetings at the slow progress the United States had made in reducing its budget deficit. "We believe there will be some worthwhile progress in reducing the deficit this year. The important thing is that it continue year after year," Lawson said. The February 22 Louvre accord called for efforts to stabilize currencies at then-current exchange rates. In the six weeks that followed the Japanese yen continued to rise against the dollar despite massive central bank intervention. Asked whether this intervention was a sign of weakness in the Louvre accord, he said, "I don't think so. If there had been no intervention you would have called that a sign of weakness." Although intervention could be a cause of inflation, Lawson said, "the world does not appear to be in an inflationary mode ... but one has to be vigilant." He said yesterday's G-7 statement, which affirmed that "current levels" of exchange rates were appropriate, had been "carefully worded." "We know what we mean, and we all mean the same thing," he said. Lawson said financial markets seem to believe that Japanese measures outlined in the Louvre accord were the source of weakness for that agreement. Therefore, the G-7 countries welcomed Miyazawa's presentation of plans for a supplemental budget to stimulate domestic demand. They particularly welcomed the goal of an immediate increase in public works spending, but Lawson said the package also involved a second stage to increase expenditures during the second half of this year.  
CANADA 91-DAY T-BILLS AVERAGE 6.95 PCT, MAKING BANK RATE 7.20 PCT.  CANADA 91-DAY T-BILLS AVERAGE 6.95 PCT, MAKING BANK RATE 7.20 PCT  
CANADIAN BANK RATE RISES IN WEEK. Canada's key bank rate rose to 7.20 pct from 7.15 pct the week before, Bank of Canada said. Bank rate is set 1/4 percentage point above the average yield on the weekly issue of 91-day treasury bills. This week's yield was 6.95 pct compared with the previous week's 6.90 pct. Tenders were accepted for 2.55 billion dlrs of 91-day bills at an average price of 98.296 dlrs against 98.310 dlrs last week. The 1.40 billion dlrs of 182-day bills were priced at an average 96.488 dlrs against 96.549 dlrs last week, to yield an average 7.30 pct, versus 7.17 pct last week. The 500 mln dlrs of 364-day bills were priced at an average 92.969 dlrs against 93.159 dlrs last week, to yield an average 7.58 pct versus 7.38 pct last week. Tenders will be received next week for 2.50 billion dlrs of 91-day bills, 1.40 billion dlrs of 182-day bills and 500 mln dlrs of 364-day bills.  
AVERAGE YEN CD RATES FALL IN LATEST WEEK. Average interest rates on yen certificates of deposit (CD) fell to 4.13 pct in the week ended April 8 from 4.33 pct the previous week, the Bank of Japan said. New rates (previous in brackets) - Average CD rates all banks 4.13 pct (4.33) Money Market Certificate (MMC) ceiling rates for week starting from April 13 -       3.38 pct (3.58) Average CD rates of city, trust and long-term banks - Less than 60 days          4.15 pct (4.41) 60-90 days                 4.14 pct (4.29) Average CD rates of city, trust and long-term banks - 90-120 days                4.12 pct (4.25) 120-150 days               4.12 pct (4.23) 150-180 days               unquoted (4.03) 180-270 days               4.05 pct (4.05) Over 270 days              4.05 pct (unqtd) Average yen bankers acceptance rates of city, trust and long-term banks - 30 to less than 60 days    3.98 pct (4.20) 60-90 days                 4.03 pct (3.97) 90-120 days                unquoted (unqtd)  
JAPAN HAS NO PLANS TO CUT DISCOUNT RATE. Bank of Japan sources said the bank has no plans to cut its discount rate. They told reporters that there was no pressure on Japan during the Group of Seven (G-7) meeting here yesterday to lower its discount rate. They added that they themselves do not feel any need for a cut at all. Chancellor of the Exchequer Nigel Lawson told reporters earlier today that some countries - those with strong currencies - might have to cut interest rates. The Bank of Japan sources also said that it was too soon to call the G-7 pact a failure. The central bank sources were commenting on the dollar's renewed tumble in New York and Tokyo, which was sparked by remarks by U.S. Treasury Secretary James Baker that the dollar's fall had been orderly. They said the market must have misinterpreted Baker's comments because he was referring to the dollar's fall since the Plaza agreement in September 1985, over a long-time span, not the currency's recent movements. They added that the foreign exchange markest seem to seize on anything to use as an excuse to drive the dollar one way or the other. The Bank of Japan sources said the U.S. Is putting more weight on the dollar/yen rate in terms of judging market stability than on other currencies. Throughout the G-7 meeting, Japan pointed to the dangers that would arise from a further dollar fall because it would reduce the flow of Japanese capital to the U.S., Hurting the U.S. And world economies, they said. In February and in March of this year, Japanese investors reduced their purchases of U.S. Treasury bonds, the sources said. Each country in the G-7 - Britain, Canada, France, Italy, Japan, the U.S. And West Germany - has a different view about currency stability, the Bank of Japan sources said. This is because the overall foreign exchange market is a triangle of dollar/yen, European currencies/yen and dollar/European currencies. At the time of the Louvre agreement, European countries did not want the yen to weaken against their currencies so they did not object to the yen strengthening, they said.  
YIELD RISES ON 30-DAY SAMA DEPOSITS. The yield on 30-day Bankers Security Deposit Accounts issued this week by the Saudi Arabian Monetary Agency (SAMA) rose by more than 1/8 point to 5.95913 pct from 5.79348 a week ago, bankers said. SAMA decreased the offer price on the 900 mln riyal issue to 99.50586 from 99.51953 last Saturday. Like-dated interbank deposits were quoted today at 6-3/8, 1/8 pct -- 1/8 point higher than last Saturday. SAMA offers a total of 1.9 billion riyals in 30, 91 and 180-day paper to banks in the kingdom each week.  
UAE CENTRAL BANK CD YIELDS RISE. Yields on certificates of deposit (CD) offered by the United Arab Emirates Central Bank were higher than last Monday's offering, the bank said. The one-month CD rose 1/4 point to 6-3/8 pct, while the two, three and six-month maturities rose 5/16 point each to 6-7/16, 6-1/2 and 6-5/8 pct respectively.  
COMMONWEALTH BANK CUTS AUSTRALIA PRIME TO 17.5 PCT. The Commonwealth Bank of Australia said it will lower its prime lending rate to 17.5 pct from 18.25, effective April 15. The bank's new rate will be the lowest of Australia's current prime rates. They now range from 17.75 pct to 18.5 after a recent series of reductions since late March following an easier trend in short term money market rates. Two of the three other major trading banks now have prime rates of 18 pct and one of 18.25. The Commonwealth's move reverses an increase from 17.5 pct in early February.  
U.S. SENATE LEADER CALLS FOR INTEREST RATE CUTS. Senate Finance Committee Chairman Lloyd Bentsen (D-Tex.) called on major industrial countries to make a pledge at the coming economic summit in Venice to cut interest rates. "I think at the summit meeting in Venice what we ought to be trying to do is to get the other major industrial nations that are involved to bring interest rates down, say, one pct," Bentsen told NBC Television's "Meet the Press." Bentsen said coordinated rate cuts could take "billions off the debt service of the Latin countries" and help ease protectionist pressures in the industrial countries. Bentsen also South Korea and Taiwan should be pressured to revalue their currencies in relation to the U.S. dollar. "You take the Taiwanese, with an enormous capital surplus, enormous trade surplus, and we've had very little cooperation there," he said. Departing Deputy Treasury Secretary Richard Darman told the same television network he agreed that the U.S. dollar had not fallen enough against the currencies of some countries. "I think that more does have to be done there in negotiations with the countries involved, the so-called NICs (newly industrialized countries)," he said. Darman said such negotiations with newly industrialized countries were underway privately. Bentsen predicted Congress and the White House would agree on a fiscal 1988 budget that would raise between 18 and 22 billion dlrs in new revenues. The Texas senator said a series of excise taxes would be considered by Congress, including an extension of the telephone tax and new levies on liquor and cigarettes. Bentsen said he supported an oil import fee, but that it would not happen without President Reagan's support. Darman called for a "top level negotiation" between the White House and Congress on a budget compromise that would include asset sales, some excise taxes, cuts in middle-class entitlement programs, "a reasonable, steady rate of growth in defense" and reform of the budget process.  
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY   NEW RATE  OLD RATE  MATURITY 30-140 days  5.00 pct  5.00 pct   30-179 days 141-160 days  6.13 pct  6.08 pct  180-200 days 161-182 days  5.00 pct  5.00 pct  201-274 days 183-200 days  6.17 pct  6.18 pct  275-290 days 201-360 days  5.00 pct  5.00 pct  291-360 days  
FRENCH 13-WEEK T-BILL AVERAGE RATE RISES TO 7.39 PCT FROM 7.36 PCT - OFFICIAL.  FRENCH 13-WEEK T-BILL AVERAGE RATE RISES TO 7.39 PCT FROM 7.36 PCT - OFFICIAL  
BANKERS TRUST <BT> RAISES BROKER LOAN RATE. Bankers Trust Co said it is raising its broker loan rate to 7-1/2 pct from 7-1/4 pct, effective immediately. U.S. Trust Co, the only other bank to publicize its broker rate, was already posting 7-1/2 pct.  
U.S. TRUST CO <USTC> RAISES BROKER LOAN RATE. U.S. Trust Co said it raised its broker loan rate to 7-3/4 pct from 7-1/2 pct, effective immediately. Bankers Trust Co <BT>, which also quotes its broker loan rate publicly, raised its rate to 7-1/2 pct earlier today.  
U.S. BILL AUCTION RATES AVERAGE 5.98, 6.08 PCT. The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.98 pct, with a 6.08 pct rate on six-month bills. These rates compared with averages of 5.53 pct for the three- and 5.63 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 6.17 pct. Accepted bids ranges from 5.92 to 5.99 pct and 60 pct of the bids at the high, or stopout rate, were taken. For six months, the yield was 6.38 pct and the bids ranged from 5.98 pct to 6.10 pct with 48 pct of the bids accepted. The Treasury said it received 25.99 billion dlrs of bids for the three-month bills, including 1.2 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids, including 2.1 billion dlrs from the Federal Reserve and 180 mln dlrs from foreign and international monetary authorities. Some 24.7 billion dlrs in bids for six-month bills were received, including 832 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs, including 1.8 billion dlrs from the Fed and 1.2 billion dlrs from foreign and international authorities. The average price for the three-month bills was 98.488 and prices ranged from 98.504 to 98.486.  The average price for the six-months bills was 96.926, and prices ranged from 96.977 to 96.916. The average yield on the three-month bills was the highest since 5.99 pct on June 30, 1986.  The average yield on the six-month bills was the highest since 6.13 pct on June 23, 1986.  
BUDGET CHIEF MILLER WARNS FED ON INTEREST RATES. White House Budget chief James Miller said he was concerned that the Federal Reserve might "overreact" to the decline in the value of the U.S. dollar by raising interest rates, a move he said could cause a recession next year. "Our greatest danger is overreaction," Miller told newspaper reporters yesterday. "I'm concerned about the Fed's overreaction. I'm concerned about what I see in recent data showing a substantial fall in the money supply." Edwin Dale, Miller's spokesman, said the remarks, published in the New York Times today, were accurate. Miller said he was concerned the Fed might overreact to signals of rising inflation by tightening credit -- a move he said could have "political consequences." The White House budget chief appeared to be referring to the effect an economic slowdown could have on the presidential and congressional elections next year. "My fear is that if we get into a recession we are in deep soup, and there is no question about it," he said. Miller said an economic slowdown could lead to lower tax revenues and a widening of the budget deficit. Miller's remarks reflected concern that the U.S. central bank might feel compelled to tighten credit as a means of bolstering the dollar. Both Treasury Secretary James Baker and Federal Reserve Board Chairman Paul Volcker recently have warned that further declines in the value of the U.S. dollar could jeopardize global growth prospects. U.S. officials have urged Japan and West Germany to stimulate economic growth in their countries -- a move that could boost U.S. exports and relieve trade protectionist pressures in the United States.  
NATIONAL MUTUAL CUTS AUSTRALIAN PRIME TO 17.75 PCT. National Mutual Royal Bank Ltd said it would cut its prime rate to 17.75 pct from 18.25, effective April 27. The cut follows a trend toward lower rates started last month and accelerated by Westpac Banking Corp, which yesterday cut its prime to 17.50 pct from 18.25 pct. Westpac's 17.50 pct is the lowest prevailing rate.  
Bundesbank's Schlesinger says no plan to cut discount rate-Nihon Keizai newspaper.  Bundesbank's Schlesinger says no plan to cut discount rate-Nihon Keizai newspaper  
BUNDESBANK REPORTED TO HAVE NO PLAN FOR RATE CUT. Bundesbank Deputy President Helmut Schlesinger said the West German central bank had no plan to cut its three pct discount rate, Nihon Keizai newspaper reported. The financial daily quoted Schlesinger as saying in an interview that the bank would try to maintain current interest rate levels for the time being. He also told the newspaper he saw no need for large-scale intervention in the foreign exchange market because exchange rates are stable. Earlier, Schlesinger told a press conference that the Bundesbank would continue its policy of maintaining short-term interest rates at a low level for currency stability. He also said he was satisfied with the current dollar/mark exchange rate but added that he was not certain if it was ideal for the West German economy.  
WINDOW FOR BANK AID IN KUWAIT REMAINS SHUT. The Kuwait Central Bank kept its window for funds to the domestic interbank deposit market shut as banks returned from a four day holiday, dealers said. The move drove short-term interest rates sharply higher, with overnight and tomorrow-next funds more than doubling from last Wednesday and hitting 20 pct. There were few offers in a tight market and traders scrambled for any available funds. One-month to one-year deposits were indicated one point higher at eight, seven pct but there was little activity at the longer end of the market. Bankers see the suspension of central bank aid as a deliberate move to drive up Kuwaiti dinar interest rates and stem a flow of funds out of the country, where market nervousness is increasing over the growing tension in the Gulf. The central bank's move has been combined with a steady cut in the dinar exchange rate. Today's rate was reduced to 0.27939/73 to the dollar from 0.27758/92 on Wednesday before the four day bank holiday that celebrated the end of the fasting month of Ramadan.  
U.K. BANKERS CONSIDER NEW ECGD FINANCING PLAN. Representatives of major U.K. Based banks are meeting here today to consider a new plan for reducing the cost of financing British exports guaranteed by the Export Credits Guarantee Department (ECGD), senior banking sources said. The plan is being developed in conjunction with the ECGD and the Bank of England. Neither the ECGD nor the Bank of England would comment on the plan. However, bankers said one of the main points under discussion is a plan to refinance the bulk of the ECGD's medium term credit portfolio in the international capital markets.  The proposals involve introducing a set of interest margins on ECGD backed debt of 5/16 to 7/8 pct, depending on the size and maturity of the credit and the currency. The banks are likely to push for a higher margin. Bankers said that while these rates would reduce a bank's return they would still be more than those proposed about a year ago when the government attempted unsuccessfully to initiate another cost reduction plan. At the same time, the banks would be expected to allow the ECGD to realise additional savings by refinancing existing government backed credit in the capital markets.  On credits that are refinanced an original lender would receive a residual margin of 7/16 pct for loans up to 10 mln stg and 3/16 pct on larger transactions.  
CCC INTEREST HIGHER IN JUNE, USDA SAYS. Interest rates on commodity loans disbursed by the Commodity Credit Corporation (CCC) this month will carry a 6-7/8 pct interest rate, the U.S. Agriculture Department said. That is up from the May rate of 6-1/4 pct and reflects the interest rate charged the CCC by the U.S. Treasury in June, USDA noted.  
Tokyo - Bundesbank's Schlesinger sees no reason to lower interest rates.  Tokyo - Bundesbank's Schlesinger sees no reason to lower interest rates  
BUNDESBANK SETS NEW REPURCHASE TENDER. The Bundesbank set a new tender for a 28-day securities repurchase agreement, offering banks liquidity aid at a minimum bid rate of 3.50 pct, a central bank spokesman said. Banks must make their bids by 1400 GMT today and funds allocated will be credited to accounts tomorrow. Banks must repurchase securities pledged on July 1.  
Nakasone, Sumita agree discount rate cut not appropriate now - central bank sources.  Nakasone, Sumita agree discount rate cut not appropriate now - central bank sources  
NAKASONE, SUMITA AGREE RATE CUT NOT APPROPRIATE. Prime Minister Yasuhiro Nakasone today agreed with Bank of Japan governor Satoshi Sumita that a further cut in the discount rate was not appropriate at present, central bank sources said. They told Reuters the two discussed the subject at a routine meeting. Sumita told Nakasone he did not feel a rate cut was appropriate and Nakasone expressed his understanding, the sources said. Currency dealers have speculated that Japan and West Germany might come under pressure at next week's Venice summit to cut interest rates to boost their economies. Nakasone, but not Sumita, is due to attend the summit.  
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.  BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL  
U.S. HOUSE SPEAKER WRIGHT CONCERNED of INTEREST RATE RISE UNDER GREENSPAN.  U.S. HOUSE SPEAKER WRIGHT CONCERNED of INTEREST RATE RISE UNDER GREENSPAN  
WESTPAC DROPS NEW ZEALAND INDICATOR LENDING RATE. Westpac Banking Corp <WSTP.S> said it is cutting its indicator lending rate to 22 pct from 23 pct effective from June 15. Westpac said in a statement various other lending rates are also being revised downwards. The Westpac move follows base rate drops by other New Zealand trading banks recently. <Bank of New Zealand's> base rate drops to 22 pct from 23 on June 16 and <National Bank of New Zealand Ltd's> rate falls to 21.50 pct from 23 on June 15. The Australia and New Zealand Banking Group Ltd <ANZA.S> rate remains at 23 pct.  
CITIBANK LOWERS AUSTRALIAN PRIME RATE TO 16 PCT. Citibank Ltd said it would lower its Australian prime rate to 16 pct from 16.5, effective tomorrow. The new rate, if unmatched by other banks, will be the lowest among Australian trading banks. Other primes range from 16.25 to 17.5 pct. Australian prime rates have now retreated from a recent peak of 19 pct in October in line with declining money market levels. Citibank said its reduction reflected the decline.  
COMMONWEALTH BANK CUTS AUSTRALIAN SPLIT PRIME. The Commonwealth Bank of Australia said it will lower its reference rate for loans to 15.75 pct from 16.25 pct and its overdraft reference rate to 16.25 pct from 16.75, effective June 24. Bank officials have said the bank regards the overdraft reference rate, based on short-term rate trends, as its key prime lending rate to corporate customers. The loan reference rate is based on longer term trends. The bank is the latest to cut prime rates in recent days following a continuing decline in market rates. Other prime rates now range from 16 pct to 17.5 pct.  
BELGIUM CUTS TREASURY CERTIFICATE RATES. The Belgian National Bank said it cut one, two, and three month treasury certificate rates, all by 0.10 points, effective immediately. The cuts take the one month rate to 6.75 pct, the two month rate to 6.80 pct and the key three month rate to 6.85 pct, the central bank said in a telex. A National Bank spokesman said the modest cut was made after a decline in domestic money market rates yesterday, and was not expected to be followed by a cut in the 7.60 pct discount rate. The short-term treasury certificate rates, and especially the three-month rate, have been the National Bank's main monetary policy instrument for the last two years. The discount rate has been the market's penalty rate rather than a guiding rate since 1985, and its advances are currently little used as liquidity is ample, bank economists said. The bank last cut one- to three-month certificate rates on June 5, also by 0.10 points.  
MAY AJUSTED STERLING BANK LENDING UP 2.7 BILLION STG. AFTER 1.5 BILLION IN APRIL - OFFICIAL  MAY AJUSTED STERLING BANK LENDING UP 2.7 BILLION STG AFTER 1.5 BILLION IN APRIL - OFFICIAL  
CITIBANK LOWERS AUSTRALIAN PRIME RATE TO 16 PCT. Citibank Ltd said it would lower its Australian prime rate to 16 pct from 16.5, effective tomorrow. The new rate, if unmatched by other banks, will be the lowest among Australian trading banks. Other primes range from 16.25 to 17.5 pct. Australian prime rates have now retreated from a recent peak of 19 pct in October in line with declining money market levels. Citibank said its reduction reflected the decline.  
COMMONWEALTH BANK CUTS AUSTRALIAN SPLIT PRIME. The Commonwealth Bank of Australia said it will lower its reference rate for loans to 15.75 pct from 16.25 pct and its overdraft reference rate to 16.25 pct from 16.75, effective June 24. Bank officials have said the bank regards the overdraft reference rate, based on short-term rate trends, as its key prime lending rate to corporate customers. The loan reference rate is based on longer term trends. The bank is the latest to cut prime rates in recent days following a continuing decline in market rates. Other prime rates now range from 16 pct to 17.5 pct.  
NAT WEST CUTS MORTGAGE RATE FOR NEW BORROWERS. National Westminster Bank Plc <NWBL.L> announced a 0.75 pct reduction in the mortgage interest rate applicable to new mortgages taken out from June 19, 1987. The new rate is 10.5 pct (APR - Annual Percentage Rate - 11.2 pct including fees for normal repayment mortgages, and 11.1 pct including fees for endowment and pension mortgages). A spokesman for Nat West said the position for existing mortgages is being kept under active review in the light of market conditions, and an announcement will be made as soon as possible.  
FED'S SEGER SAYS U.S. THRIFT INDUSTRY NEEDS STABLE. INTEREST RATES  FED'S SEGER SAYS U.S. THRIFT INDUSTRY NEEDS STABLE INTEREST RATES  
CANADA BANK RATE RISES TO 8.59 PCT. Canada's bank rate rose marginally to 8.59 pct from 8.58 pct last week, Bank of Canada said. The bank rate is set one-quarter percentage point above the average yield on the weekly issue of 91-day treasury bills. This week's yield was 8.34 pct, compared with the previous week's 8.33 pct. Tenders were accepted for 2.20 billion dlrs of 91-day bills at an average price of 97.963 dlrs against 97.965 dlrs last week. The 1.20 billion dlrs of 182-day bills were priced at an average 95.852 dlrs against 95.779 dlrs last week, to yield an average 8.68 pct against 8.84 pct last week. The 500 mln dlrs of 364-day bills were priced at an average 91.712 dlrs against 91.529 dlrs last week, to yield an average 9.06 pct against 9.28 pct last week. Tenders will be received next week for 2.20 billion dlrs of 91-day bills, 1.20 billion dlrs of 182-day bills and 500 mln dlrs of 364-day bills.  
ANZ BANKING GROUP SAYS IT WILL CUT PRIME RATE TO 16.00. PCT FROM 16.50 ON JUNE 22  ANZ BANKING GROUP SAYS IT WILL CUT PRIME RATE TO 16.00 PCT FROM 16.50 ON JUNE 22  
ANZ BANKING GROUP CUTS PRIME RATE TO 16.00 PCT. The Australia and New Zealand Banking Group Ltd <ANZA.S> said it will cut its prime rate to 16.00 pct from 16.50, effective June 22. The cut takes the ANZ's prime to the lower end of the range of prime rates being offered by Australian trading banks. The highest rate is 17.50 pct. The cut follows announcements of cuts yesterday by <Citibank Ltd> to 16.00 pct from 16.5, effective today, and <Commonwealth Bank of Australia> to 15.75 pct from 16.25, effective June 24.  
Top discount rate at U.K. Bill tender rises to 8.7239 pct.  Top discount rate at U.K. Bill tender rises to 8.7239 pct  
U.K. CENTRAL BANK WARNS OF EXCESSIVE RATE CUTS. Bank of England governor Robin Leigh-Pemberton said lowering interest rates too fast could jeopardise recent economic achievements in the U.K. In remarks prepared for delivery to businessmen in Birmingham, he said prospective returns on real investment are more favourable, relative to those on financial assets, than for a good number of years. "It would surely be foolish to put that favourable conjuncture at risk by lowering interest rates prematurely or excessively," he said. "We might enjoy a short-term boost to activity, but at the risk of a damaging return to the uncertainty and acrimony of high inflation," he added. Leigh-Pemberton said he recognised there are some who would argue that interest rates are still too high and deter investment in industry. "But we should not forget that less than a year ago we were intervening to support sterling and had some temporary difficulty in persuading the markets that a one pct increase in base rates, to 11 pct, was a sufficient tightening of policy at the time," he added. Base rate is currently nine pct.  
U.K. LENDERS OFFER MORE FIXED RATE MORTGAGES. More U.K. Lenders are offering homebuyers fixed interest rate mortgages under which the borrower makes the same monthly payment no matter what happens to other interest rates. And with mortgage rates now at their lowest levels in years, the loans have been snapped up by eager home buyers trying to lock into cheap money. The decision to offer fixed rate loans, industry officials said, reflects the increasingly competitive nature of the home mortgage business. While fixed rate mortgages are uncommon in the U.K., They were the mainstay of the business in the U.S. Up until only a few years ago. But in the early 1980s interest rates soared. U.S. Lenders, mostly savings and loan associations, were earning rates as low as three pct on 30 year fixed rate mortgages they held in their portfolios but had to pay depositors rates as high as 15 pct to induce them to retain their accounts. As a result hundreds of institutions collapsed or were forced to merge. The survivors decided to offer mortgages whose rates would move in line with the cost of funds. "We very much have the example of the U.S. Thrifts in mind," said a spokesman for Abbey National Building Society, explaining why his institution, for the time being, is only offering variable rate mortgages. The rash of advertising to solicit new business has helped homebuyers to become even choosier about loans and lenders concede they are being forced to undercut each other still more. Sharp cuts on variable rate mortgages announced earlier this week by the nation's two largest building societies and by National Westminster Bank Plc reflect growing competition for new business, officials at all three institutions said. The fixed rate mortgages on offer carry interest rates even below those on the variable rate loans. "Of course they are less profitable than other (variable rate) mortgages," said a spokesman for Midland Bank Plc, which earlier this year said it earmarked 500 mln dlrs for fixed rate new mortgage loans. But he said the bank is willing to offer less profitable loans because, "It was just another way to attract people to our mortgage product." Trustee Savings Bank Plc (TSB) was offering five year fixed rate mortgages at 9.9 pct earlier this year. The 100 mln stg that TSB set aside for the loans was exhausted within just a few days, according to a spokeswoman. "Everybody loves an under 10 pct mortgage," she said, noting that within five days the bank loaned the equivalent of 25 pct of its 1986 volume. In short, the appeal of fixed rate mortgages is that they offer an opportunity to gamble on the direction of interest rates. If interest rates fall after the mortgage is made the lender is earning an above average return on assets. But if interest rates rise it is the homebuyer who has won the benefit of cheap money. Household Mortgage Co had planned to offer a 25 year fixed rate mortgage after the June 11 elections on the assumption that a Conservative Party victory would help money market rates fall further, according to Duncan Young, managing director. Young explained that the company had planned to protect itself against the chance of rising interest rates by buying a complicated hedging instrument. But money market rates have risen contrary to expectations and the company has shelved its plans for the time being. He said money market rates were too high to arrange both the mortgages and hedge profitably. However, he said that when the Household Mortgage Co does make fixed rate mortgages it is likely to securitise them. This means bundling different mortgages together to resemble a bond and selling them to an investor. For technical reasons securitisation is simpler and more efficient with fixed rate rather than with floating rate mortgages. In the U.S., Where fixed rate mortgages are popular again, securitisation has provided the bulk of mortgage money over the past few years.  
UPTREND REMAINS INTACT FOR DEBT FUTURES. The six basis point rise of the past month in U.S. debt futures may be extended next week by a series of U.S. economic reports, analysts said, as long as the dollar holds firm. "Interest rates have declined by approximately 50 basis points over the last month, largely over indications that inflation is not as high as people had feared and the narrowing U.S. trade balance, in nominal terms," Samuel Kahan, chief financial economist with Kleinwort Benson Government Securities, said. Kahan said recent government reports have shown strength in the economy during the first quarter, but his concern is whether the U.S. economy will sustain that strength in the longer term. Weak U.S. economic growth could hurt the dollar, which has become more important to the direction of debt futures than the beneficial impact on interest rates of a sluggish economy. The median trade expectations for Tuesday's U.S. Consumer Price Index and Durable Goods reports are up 0.4 pct and down 1.5 pct, respectively. Meanwhile, the eight billion dlr drop in the M-1 money supply announced this week was "surprising, much larger than expected," according to Kahan. "Unless quickly reversed," such a trend "will ensure that June M-1 growth will be negative," Kahan said. Taken in conjunction with M-2 and M-3 aggregates which Kahan said have "slowed to a crawl, below Federal Reserve Board annual targets," the consequences could be a hint of economic weakness down the road, he said. Based on chart formations, T-bond futures may be poised for further gains, although the advance has been slowed recently, analysts said. September T-bonds "are up almost six points since about May 18," Merrill Lynch debt analyst Jim Duggan noted. September bond futures climbed from the low of 87 a month ago to over 93 in mid-June, Duggan said. While follow-through buying has aided the advance so far, and bouts of short covering have prohibited a slide through chart support, the rally in September T-bonds has been thwarted above the 93 level. "The 93 level is formidable resistance and must be taken out before this activity is anything other than a trading range market," Carroll McEntee and McGinley Futures debt analyst Brian Singer said. The dollar remains the key fundamental factor, and the U.S. currency has made little headway of late, analysts said. "The critical variable remaining in the market is the value of the dollar," Kahan said. Additional influences next week will be possible developments ahead of an OPEC members meeting, and the impact and size of the U.S. budget deficit, "although these will not be in the forefront of the market early next week," Kahan said. In looking ahead to the U.S. Treasury mini-refunding auctions of 24.25 billion in T-notes on Tuesday, Wednesday and Thursday, Singer said the market will likely greet the results with little excitement. However, a successful auction could prove to be a turning point, depending on prevailing market psychology.  
HK SHANGHAI BANK, STANDARD CHARTERED BANK RAISE PRIME. 1/2 POINT TO 7.5 PCT.  HK SHANGHAI BANK, STANDARD CHARTERED BANK RAISE PRIME 1/2 POINT TO 7.5 PCT.  
BANK OF JAPAN DETERMINED TO KEEP EASY MONEY POLICY. The Bank of Japan bought 100 billion yen in certificates of deposit (CDs) via repurchase agreements today to show its determination to maintain an easy money policy, central bank officials said. "Today's CD buying operation was designed to seek an announcement effect, in which we would reassure the market of the fact that we have not changed our policy stance," a senior central bank official told Reuters. The bank also bought 400 billion yen in two-month commercial bills to smooth out tight credit conditions in the interbank market today, the officials said. The central bank was concerned about growing market expectations of higher interest rates, which were in part responsible for the recent plunge in stock and yen bond prices, the officials said. But money traders said the market generally shrugged off the bank's CD operation because it was small and at a rate far below prevailing market rates. The rate on the key three-month CDs in the primary market was 4.08/00 pct, while the bank's bid was 3.75 pct, they said. The bank's bill buying operation also had little impact because it was regarded as a routine operation, they said. The money traders said they regarded the central bank's CD buying operation as simply a gesture to live up to Japan's pledge to guide interest rates lower and stimulate the economy. "We did not expect the central bank to ease its credit grip any further," a bank manager said, adding that the prevailing market expectation of higher rates will remain. "If this is the case, the three-month CD rate will stay above four pct for the time being," he said.  
BANK OF JAPAN TO SELL 1,200 BILLION YEN IN BILLS. The Bank of Japan will tomorrow sell 1,200 billion yen in bills from its holdings to help absorb a projected money market surplus of 2,100 billion, money market traders said. Of the total, 800 billion yen will yield 3.6004 pct on sales from money houses to banks and securities houses in 34-day repurchase agreements maturing on August 3. The other 200 billion yen will yield 3.6003 pct in 43-day repurchase accords maturing on August 12. The remaining 200 billion yen will yield 3.6503 pct in 50-day repurchase agreements maturing on August 19. The repurchase agreement yields compare with the 3.5625 pct one-month commercial bill discount rate today and 3.6250 pct on two-month bills. They attributed the projected surplus mainly to 1,900 billion yen of government tax allocations to local governments and public bodies.  
UAE CENTRAL BANK CD YIELDS UNCHANGED. Yields on certificates of deposit (CDs) issued today by the United Arab Emirates central bank were unchanged from those on last Monday's offer, the bank said. The one month yield was set at last week's 6-3/4 pct, while two and three month CDs also remained unchanged at 6-13/16 pct. The six month yield was set at seven pct.  
BANK OF FRANCE CUTS INTERVENTION RATE TO 7-1/2 PCT FROM. 7-3/4 PCT - OFFICIAL  BANK OF FRANCE CUTS INTERVENTION RATE TO 7-1/2 PCT FROM 7-3/4 PCT - OFFICIAL  
BANK OF FRANCE CUTS SEVEN-DAY REPURCHASE RATE TO EIGHT. PCT FROM 8-1/4 PCT - OFFICIAL  BANK OF FRANCE CUTS SEVEN-DAY REPURCHASE RATE TO EIGHT PCT FROM 8-1/4 PCT - OFFICIAL  
POEHL SPEAKS AGAINST GERMAN INTEREST RATE CUT. Bundesbank President Karl Otto Poehl said West Germany would be badly advised to lower interest rates and that he believed the economy would continue to recover after a six-month lull. Asked by the newspaper Bild am Sonntag if lower interest rates could boost the domestic economy, Poehl said: "We would be badly advised if we forced further interest rate cuts. "This could, under certain circumstances, release new inflationary fears which would then be more likely to lead to higher interest rates," he added.  Poehl said Germany had practically no growth in the past six months because of the mark's surge and the cold winter. "But since April, statistics clearly show that the economy finds itself on a course of growth," he said. "I expect this development to continue in the coming months." Asked about his expectations of a U.S.-European Community trade war, Poehl said such an event would be disastrous. "For this reason we in Europe must avoid everything used by protectionist forces in the U.S. As pretexts," he added. "This includes...Eliminating existing restrictions in the EC as far as possible. Protectionism is not found only in the U.S."  
U.S. TO END NETHERLANDS ANTILLES TAX TREATY. The Treasury Department said it notified the Netherlands that it was terminating the 1948 income tax treaty as it applies to the Netherlands Antilles and Aruba. The termination is effective January 1, 1988, the Treasury said in a two-sentence announcement. The Treasury decided to end the treaty after negotiations between the United States and the Netherlands over the past eight years had failed to reach an accord, a Treasury spokesman said. The decision means the sale by U.S. parent companies of Eurobonds through Netherlands Antilles subsidiaries will no longer be free of the 30 pct U.S. withholding tax, the spokesman said. Terminating the tax treaty with the Netherlands Antilles may cause bond issuers to call in the bonds early. Most have maturities of 10 years or less and were issued before 1984, the spokesman said. He said the Treasury did not expect the action to have an adverse effect on U.S. issuers of the bonds because the general decline in interest rates means they will be able to refinance at lower interest rates. However, the holders of the bonds presumably will be faced with lower yields.  
AQUINO SAYS MANILA WATCHING INTEREST RATES CLOSELY. President Corazon Aquino said the Philippines was closely monitoring interest rates in the wake of Monday's record drop on Wall Street and steep declines in Manila and other Asian stock markets. "We will monitor these developments closely and will continue to hope that they do not precipitate large declines in economic activity around the world," Aquino told a meeting of 13 major Philippine business groups. "The Philippines, as a trading country in the world economy, depends on the continued health and growth of both the world economy and the world trading system," she said. The Manila Stock Exchange composite index plunged 105.49 points or 11.79 pct by the midday close to 789.54, depressed by the record 508 point fall of the Dow Jones industrial average on Monday. "The Philippines, in addition, as a large borrower nation, is affected by developments in interest rate levels around the world and will carefully monitor the impact of these developments on interest rates, on gold and on commodity prices," Aquino said. "We welcome the statements from world leaders that urge calm in the present difficult situation," she added.  
Poehl says German and international interest rate rises are cause for concern.  Poehl says German and international interest rate rises are cause for concern  
POEHL SAYS RATE RISES ARE CAUSE FOR CONCERN. Rises in West German and international interest rates are a cause for concern and the Bundesbank has no interest in higher capital market rates, Bundesbank President Karl Otto Poehl said. "We consider the interest rate increase that has occurred here and internationally to be a problem and cause for concern," Poehl told an investment conference. "I would like to stress that the Bundesbank has no interest in higher capital market rates," he said. Shortly after Poehl spoke, the Bundesbank announced a tender for a securities repurchase pact at a fixed rate of 3.80 pct. Previous tenders over the last month by interest rate have seen the allocation rate on these facilities rise to 3.85 pct at last week's pact from 3.60 on the last fixed-rate tender in late September. The Bundesbank's reduction of the key allocation rate to 3.80 from 3.85 pct was heralded Monday by repeated injections of money market liquidity at between 3.70 and 3.80 pct. These moves to cap interest rates followed a meeting between Poehl, Finance Minister Gerhard Stoltenberg and U.S. Treasury Secretary James Baker Monday in Frankfurt. Officials said afterwards the three men had reaffirmed their commitment to the Louvre accord on currency stability. Over the weekend, criticism by Baker of the tightening in West German monetary policy had prompted a sharp fall of the dollar on speculation that Louvre cooperation had ended. But the dollar rallied on news of Monday's meeting in nervous trading to trade above 1.79 marks Tuesday. Poehl said that the recent rise in interest rates was not due to central bank policy, but to markets' expectations, and currency developments. Commenting on the inflationary expectations, Poehl said "You have to get to the root of the problem, you have to pursue a policy which reveals that there are no grounds for such fears." The inflationary fears were unjustified and exaggerated, he said. Poehl rebuffed recent U.S. Criticism of West Germany, saying the Bundesbank had made a substantial contribution to international cooperation in interest and monetary policy. The Bundesbank has tolerated an overshooting of its money supply target, arousing criticism from other quarters, he said. "Today we still have lower interest rates than at the end of 1986... Quite the contrary of other countries, where interest rates have risen substantially more," Poehl said. This had to be taken into account when considering recent rises in repurchase pact allocation rates, which were due to rising international money market rates that had spilled over into the German market, he said. Poehl expressed surprise that financial markets had so far ignored improvements in the U.S. Deficits. "The adjustment process in the U.S. Trade balance is definitely underway," he said, noting that this was not so noticeable in absolute figures. The spectacular improvement in the budget deficit had also attracted little attention, he said.  
TOKYO STOCK PLUNGE COULD FORCE EASIER MONEY POLICY. Plunging Tokyo stock prices will prevent the Bank of Japan from raising its discount rate and could even force it to ease monetary policy if the collapse continues, government and private economists said. A rise in interest rates now would only serve to spark further selling of shares that could ultimately have a major deflationary impact on the real economy, they said. Although Bank of Japan officials have consistently maintained that they had no plans to raise the 2.5 pct discount rate, many in the markets have thought otherwise. Fears of a rise in the discount rate were fanned by the central bank's apparent decision last week to countenance higher rates on commercial bills, dealers said. But today's stock market collapse -- prices fell nearly 15 pct -- means that the Bank of Japan would be hard pressed to raise the discount rate now, despite its concerns about a renewed outbreak of inflation, dealers and economists said. Japanese government bond prices rose sharply today as the markets concluded that the stock market's collapse precluded the central bank from carrying out the widely-rumoured discount rate increase. A senior government economist suggested that both the U.S. And Japan needed to ease monetary policy now to prevent a further drop in New York and Tokyo stock prices. "They need to support the stock and security markets," he said. But Bank of Japan officials said they saw no need to change policy for the moment, although one admitted that the central bank may have to rethink its strategy if Tokyo stock prices continue to plunge during the rest of the week. Both government and Bank of Japan economists agreed the economy is better placed now to cope with the deflationary impact of plunging stock prices than it was a few months ago. With the economy recovering strongly, the steep drop in stock prices is not likely to put a major dent in consumer and business confidence, one government economist said. "There will be some impact on the real economy, but it won't be that big," said another. Individuals are not heavily invested in stocks on their own, although they do participate through trust funds and other investment vehicles. And while many manufacturing firms turned to financial market investments for profits during last year's economic downturn, the recent rebound has allowed them to refocus their attention on their core businesses, he said. Paradoxically, it is the pick-up in the economy that is partly to blame for the stock market collapse as companies have shifted funds away from financial investments to increase inventories and step up capital spending, one government economist said. In deciding what response to make to the steep stock price drop, the Bank of Japan must first determine whether prices will continue to fall further and then decide if they pose a greater economic danger than the threat of higher inflation, one central bank official said. "That will at least take a couple of days, if not weeks," he said.  
CHEMICAL BANK CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE IMMEDIATELY.  CHEMICAL BANK CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE IMMEDIATELY  
MARINE MIDLAND BANK CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE IMMEDIATELY.  MARINE MIDLAND BANK CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE IMMEDIATELY  
CHEMICAL <CHL>, MARINE MIDLAND <MM> CUT PRIME. Chemical Bank and Marine Midland Banks Inc said they are cutting their prime lending rate to 9-1/4 pct from 9-3/4 pct, reversing an increase that they announced just last week. The reduction is effective immediately. No other major U.S. bank had followed the lead of Chemical and Marine Midland, preferring to keep their prime rates at 9-1/4 pct while they waited to see what course money market rates would take. Following Monday's record fall in Wall Street stock prices, money market rates fell sharply on Tuesday as investors ploughed proceeds into short-term instruments and the Federal Reserve said it is prepared to provide liquidity to support the economy and the financial system. Eurodollar deposit rates in London fell by as much as 9/16 percentage point, Treasury bill rates fell by as much as half a point (after falling between 59 and 84 basis points on Monday), and the Fed funds rate dropped to 7-1/4 pct from Monday's average of 7.61 pct. Speculation even surfaced of a discount rate cut to calm the markets, dealers said.  
U.K. CREDIT POLICY SEEN STEADY, DESPITE BANK DATA. An unexpectedly heavy 4.4 billion stg surge in U.K. September sterling bank lending is unlikely to nudge the Bank of England towards tightening monetary policy as long as sterling remains in its present robust state, economists said. An acute crisis of confidence in equity markets over the past two days will in any case subdue personal consumer credit demand which has largely been behind growth in lending. "In the normal course of events the markets would have been extremely worried about that figure," noted Peter Spencer, U.K. Economist with Credit Suisse First Boston. After an initial dip in reaction to the bank lending data, which compared won stg August rise, U.K. Government bonds (gilts) soared as investors continued to flee from plummetting equities into the relative security of government securities. Equity markets dropped sharply on the news, touching a day's low of 1,766.7 on the FTSE 100 index after the data, before staging a recovery. Sterling held its buoyant tone throughout. U.K. Money market rates, in a similarly calm response, resumed the slightly easier trend of earlier in the morning after little more than a token blip as the figures came out. Noting that such a huge rise in credit extended by banks would under other circumstances have prompted market fears of a rise in clearing bank base rates from the current 10 pct, "With the financial markets doing what they're doing, that's the last thing the Bank of England would want to do," Spencer said. "The monetary situation is clearly very bad but as long as sterling is firm, the authorities are unlikely to put rates up," said Kevin Boakes, chief U.K. Economist at Greenwell Montagu Gilt Edged. Boakes pointed to a rise in the narrow money measure M0 to 5.2 pct year-on-year from August's 4.5 pct growth, which he said must cause some concern at the Treasury. But "The fact that overall broad money growth has slowed down is a rather encouraging sign," noted Paul Temperton, U.K. Economist with Merrill Lynch Capital Markets. He pointed to a fall in the year-on-year growth rate of the M3 broad money aggregate to 19.5 pct in September from August's 22 pct. It was concern about credit growth which prompted the Bank of England to engineer a one point rise in U.K. Bank base rates to 10 pct in early August, caution endorsed subsequently by news of a massive 4.9 billion stg July rise in bank lending. Temperton noted that a particular focus of bank worry in that period had been the behaviour of U.K. Asset markets. Housing and equities were the key two asset markets in influencing consumer behaviour, he said. In the light of the precipitous falls on U.K. Equity markets in the past few days, "There will almost certainly be a straightforward impact on consumer spending and on retail sales," Temperton said. "Almost certainly we can look forward to slower growth in consumer borrowing if the equity shakeout continues," he added. "I think the stock market has decided that the bank lending figure is a thing of the past...We are talking about a very serious panic and a flight to quality," Spencer said. A U.K. Treasury official said that it was important to look at all the monetary information, not just the bank lending, adding that monetary aggregates were growing much more slowly than bank lending. Senior banking sources noted that the surge in bank lending was evidence of the continuing recent trend of fairly heavy personal sector borrowing. Figures from the Banking Information Service showed personal sector lending by U.K. Clearing banks rose by 1.66 billion stg in September after a 978 mln stg August rise. Much of the rise reflected quarterly interest payments.  
Bank of France says it leaves intervention rate unchanged at 7-1/2 pct.  Bank of France says it leaves intervention rate unchanged at 7-1/2 pct  
FIRST REPUBLIC BANK DALLAS CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE TODAY.  FIRST REPUBLIC BANK DALLAS CUTS PRIME RATE TO 9.25 PCT FROM 9.75 PCT, EFFECTIVE TODAY  
DONALD REGAN SAYS U.S. SHOULD EASE CREDIT SUPPLY. Donald Regan, President Reagan's former chief of staff, said the government should loosen the money supply, try to keep interest rates down and try to reduce the federal budget and trade deficits to avoid a recession. "I think what we have to face now is trying to preserve our economy," the one-time chairman of Merrill Lynch and Co Inc <MER> said in an interview on the ABC television network. "We've got to loosen money, we've got to keep interest rates down. We can't afford to let them go up. That means we're going to have to work on our twin deficits, both the budget deficit and the trade deficit," Regan said. "I certainly wouldn't tighten money at this particular moment," Regan said when asked about the prospects for a recession following Monday's price drop on Wall Street. "I think that if they were to do that, they'd create the same conditions that we did in '29...They choked off the money supply and what happened? We went into a major recession. I think that's the one thing we've got to avoid right now." Regan also called on the government to impose restrictions on program trading. "I think that that's exacerbated, exaggerated this decline, and I think it's something that they must stop," he said.  
LAWSON SAYS UK INTEREST RATE PROSPECTS UNCHANGED. U.K. Chancellor of the Exchequer Nigel Lawson said the collapse of British share prices this week held no implication so far for domestic interest rates. He said in a television interview that "there is nothing in the events of the past few days to increase the upward pressure on (U.K.) interest rates." Sterling has so far stayed solid during the crisis, backed by strong economic fundamentals and by 10 pct bank base lending rates, analysts said. Lawson's comments followed another frantic day in London's financial center, where British shares closed 12.2 pct down on the day.  
REAGAN SAYS THERE IS ROOM FOR FURTHER DECLINES IN INTEREST RATES.  REAGAN SAYS THERE IS ROOM FOR FURTHER DECLINES IN INTEREST RATES  
REAGAN SEES ROOM FOR INTEREST RATE DECLINES. President Reagan said he was pleased with the actions of some banks to reduce their prime lending rates today and said he sees room for a further decline in interest rates. "I believe there is room in the market for a further decline in interest rates," Reagan said in a statement as he left the White House to visit his wife Nancy at Bethesda Naval Hospital. Reagan's statement followed a meeting with his top economic advisers. Reagan said he remains concerned about the market, but that actions taken by the Federal Reserve have helped. "Interest rates are down across the spectrum," Reagan said. "Specifically, I am pleased that the bond market is strong and that foreign exchange markets are stable," Reagan said.  
CANADA 750 MLN DLR T-BILL ISSUE YIELD AVERAGE 8.60 PCT - OFFICIAL.  CANADA 750 MLN DLR T-BILL ISSUE YIELD AVERAGE 8.60 PCT - OFFICIAL  
FED ARRANGES THREE-DAY SYSTEM REPOS. The Federal Reserve entered the government securities market to arrange three-day system repurchase agreements, a spokesman for the New York Fed said. Federal funds were trading at 7-5/8 pct at the time of the direct injection of temporary reserves, dealers said.  
French 13-week T-Bill rate rises to 8.54 pct from 7.65 -- Bank of France.  French 13-week T-Bill rate rises to 8.54 pct from 7.65 -- Bank of France  
FDIC'S SEIDMAN SAYS HIGHER RATES COULD HARM BANKS. Federal Deposit Insurance Corp Chairman William Seidman said he would be concerned about the impact on banks of a further sharp rise in interest rates. However, Seidman, attending the American Bankers Association convention, said he did not expect rates to rise much higher and said the outlook for the U.S. economy and for banking was sound. "The potential for greater interest rate rises gives us concern. We see nothing right now in the outlook that causes us to believe rates are going much higher or that the economy is not sound," Seidman told a news conference.  
TURKEY CALLS FOR DIALOGUE TO SOLVE DISPUTE. Turkey said today its disputes with Greece, including rights on the continental shelf in the Aegean Sea, should be solved through negotiations. A Foreign Ministry statement said the latest crisis between the two NATO members stemmed from the continental shelf dispute and an agreement on this issue would effect the security, economy and other rights of both countries. "As the issue is basicly political, a solution can only be found by bilateral negotiations," the statement said. Greece has repeatedly said the issue was legal and could be solved at the International Court of Justice. The two countries approached armed confrontation last month after Greece announced it planned oil exploration work in the Aegean and Turkey said it would also search for oil. A face-off was averted when Turkey confined its research to territorrial waters. "The latest crises created an historic opportunity to solve the disputes between the two countries," the Foreign Ministry statement said. Turkey's ambassador in Athens, Nazmi Akiman, was due to meet Prime Minister Andreas Papandreou today for the Greek reply to a message sent last week by Turkish Prime Minister Turgut Ozal. The contents of the message were not disclosed.  
IRAQI TROOPS REPORTED PUSHING BACK IRANIANS. Iraq said today its troops were pushing Iranian forces out of positions they had initially occupied when they launched a new offensive near the southern port of Basra early yesterday. A High Command communique said Iraqi troops had won a significant victory and were continuing to advance. Iraq said it had foiled a three-pronged thrust some 10 km (six miles) from Basra, but admitted the Iranians had occupied ground held by the Mohammed al-Qassem unit, one of three divisions attacked. The communique said Iranian Revolutionary Guards were under assault from warplanes, helicopter gunships, heavy artillery and tanks. "Our forces are continuing their advance until they purge the last foothold" occupied by the Iranians, it said. (Iran said its troops had killed or wounded more than 4,000 Iraqis and were stabilising their new positions.) The Baghdad communique said Iraqi planes also destroyed oil installations at Iran's southwestern Ahvaz field during a raid today. It denied an Iranian report that an Iraqi jet was shot down. Iraq also reported a naval battle at the northern tip of the Gulf. Iraqi naval units and forces defending an offshore terminal sank six Iranian out of 28 Iranian boats attempting to attack an offshore terminal, the communique said.  
GHANA TO BUY CRUDE OIL FROM IRAN. Ghana will import 15,000 tonnes of crude oil annually from Iran under an agreement reached in Tehran today, the Iranian news agency IRNA reported. The agency, received in London, said the accord was reached between Iranian Oil Minister Gholamreza Aqazadeh and a visiting Ghanaian delegation headed by Foreign Minister Obed Asamoah. IRNA said that under the agreement, Iran will also provide technical and scientific assistance in manpower training and oil exploitation, production and refining.  
U.S. OIL DEPENDENCY SEEN RISING TO RECORD LEVEL. The United States' dependency on foreign oil sources may reach record levels by the mid-1990s, according to John H. Lichtblau, president of Petroleum Industry Research Associates. Lichtblau, speaking at an alternative energy conference here, said the U.S. may depend on foreign suppliers for as much as 52 pct of its oil by 1995, surpasssing the previous high level of 47 pct in 1977. "The long term growth in dependency on foreign oil is inevitable," Lichtblau said. As much as 30 pct of U.S. oil imports in 1995 could come from OPEC nations, he said. Lichtblau said the U.S. depended on foreign suppliers for 33 pct of its oil in 1986 and predicted that would increase to 40 pct by 1990. "However, the rate of this growth can be affected positively or negatively through government action or inaction," Lichtblau said. He said that one of the government's negative actions is the maintenance of the windfall profits tax which acts as a disincentive to developing existing fields and reduces cash flow for oil exploration. Lichtblau called for the adoption of an international floor price for crude oil to help stabilize world oil prices. "An international floor price adopted by all or most industrial countries would clearly be a much more effective measure and would be much less distortive for the U.S. than if we imposed it alone," Lichtblau said. Development of alternate energy sources such as synthetic fuels as well as increased development in Alaska could lessen U.S. dependency on foreign oil, Lichtblau said. A potential for alternative supplies could limit the willingness of OPEC nations to raise oil prices, he said. Lichtblau also called for the federal government to offer tax abatements for oil drilling, to fill the Strategic Petroleum Reserve at a faster rate and to develop pilot plans for alternative energy.  
LA LAND <LLX>,DU PONT <DD>GET EXPLORATION TRACTS. Louisiana Land and Exploration Co said it, Du Pont Co's Conoco Inc subsidiary and <Oranje-Nassau Energie B.V.> have been offered four exploration blocks offshore The Netherlands. Louisiana Land said Blocks Q4a, E12c and E15b were offered to the group in which Conoco has a 67.5 pct interest, Louisiana Land 20 pct and Orange-Nassau 12.5 pct, while this group along with a consortium headed by Pennzoil Co <PZL> were offered Block Q5c. The offers were the result of applications submitted to the Ministry of Economic Affairs for the Netherlands Sixth Offshore Licensing Round. Louisiana Land said the Conoco group intends to provide a formal acceptance of the blocks with plans to start exploration this year. The company also said the two Q blocks immediately offset other offshore blocks on which hydrocarbons have been found in commercial quantities.  
CRUDE OIL NETBACKS UP SHARPLY IN EUROPE, U.S.. Crude oil netback values in complex refineries rose sharply in Europe and firmed in the U.S. last Friday from the previous week but fell sharply in Singapore, according to calculations by Reuters Pipeline. The firmer tone to refining margins in Europe and the U.S. relected higher prices for petroleum products, particularly gasoline, and support from crude oil prices. Netback values for crude oil refined in Northern Europe rose substantially following strong gains in gasoline prices there. Brent is valued at 19.45 dlrs, up 56 cts a barrel or three pct from the previous week. In the U.S. Gulf, sweet crudes rose in value by 14 cts to 19.33 dlrs for West Texas Intermediate, up about 0.7 pct. Sour grades in the U.S. Gulf showed an increase of 33 cts a barrel for Alaska North Slope, up 1.7 pct. But netbacks for crude oil refined in Singapore fell sharply, down 15 cts to as much as 68 cts a barrel as ample distillate supplies weighed on petroleum product prices. Attaka in Singapore is valued at 18.55 dlrs, a decline of 68 cts a barrel or 3.5 pct from the previous week. For refineries in the Mediterranean, netback values were mostly lower, with declines of seven to 14 cts. The value of Kuwait crude fell 14 cts to 18.37 dlrs, while Iranian Light fell 11 cts to 19.14 dlrs. On the U.S. West Coast, netback values for ANS CIF L.A. also jumped sharply, up 40 cts a barrel or 2.2 pct to 18.82 dlrs on higher gasoline prices.  
ECUADOR CRUDE OIL OUTPUT TO RESUME NEXT MONTH. Ecuador is due to resume limited crude oil output on May 8 when a new 43 km pipeline to neighbouring Colombia should be finished, an energy ministry spokesman said. Oil output was halted on March 5 by an earthquake which damaged 50 km of the main pipeline linking jungle oilfields at Lago Agrio to the Ecuadorean port of Balao on the Pacific. About 13 km of the new link, capable of carrying some 50,000 barrels per day (bpd), has been built, he said. Ecuador pumped 245,000 to 250,000 bpd before the earthquake. The new link will connect Lago Agrio to Puerto Colon in Colombia, the starting point of Columbia's pipeline to the Pacific ocean port of Temuco. The government estimates it will take about four more months to repair the Lago Agrio to Balao pipeline and return output to normal levels, the spokesman said.  
TRITON <OIL> SAYS PARIS BASIN RESERVES UP 39 PCT. Triton Energy Corp said proven reserves of the Villespedue oil field in France's Paris Basin were estimated at a total of 67.5 mln barrels on March one, up 39 pct from 48.7 mln barrels on May 31, 1986. Triton said its 60 pct owned <Triton Europe Plc> subsidiary has a 50 pct interest in the field which is located 50 miles east of Paris. The other 50 pct is held by <Total Exploration S.A.>, the field's operator.  
KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE. OPEC's credibility faces fresh scrutiny in coming weeks amid signs of a significant rise in supplies of oil to international oil markets, the Kuwait daily al-Qabas said. In an article headlined, "Gulf oil sources say Middle East production up 1.4 mln bpd," it warned OPEC's official prices could face fresh pressure from international oil companies seeking cheaper supplies. It did not say whether only OPEC or both OPEC and other producers were behind the reported rise in Mideast output. Nor did it specify if the sources were official or other contacts. "The sources said the credibility of OPEC would come under fresh scrutiny from today (Monday), with activity in the European and American markets," the daily said. The sources were quoted as saying that after OPEC had in March demonstrated its commitment to quota agreements, some members had raised output last week. It gave no details. "Dealers in oil markets were now waiting to see if Opec was able to control production, or whether the days of cheating and producing over quotas has begun anew," it said. The sources warned that "maybe the (price of a) barrel of oil will fall below 18, perhaps 17.80 dlrs this week or next if there is no control on supplies," it said. "The sources believed a return of oil below 18 dlrs a barrel may open the doors for international oil companies to pressure OPEC over contract prices, similar to the struggle last March," it said, apparently referring to resistance by buyers to lift from Qatar unless it gave price discounts. "More than one official has warned OPEC would find its solidarity under scrutiny by the end of April or start of May," it said, noting demand usually fell with the onset of summer.  
TEXACO <TX> SAYS SOME OIL FLOWS RE-ESTABLISHED. Texaco Inc has re-established some key oil supply lines following yesterday's court filing for protection under Chapter 11 of the U.S. bankrupcty code, said Elton Yates, Texaco's coordinator of worldwide operations. "Several companies say they are willing to start trading," Yates told Reuters in an interview. The company last week had stated that a number of domestic and international oil suppliers were demanding cash for oil shipments, and in some cases, had cut supplies altogether. Banks had also cut credit lines, it said in court filings. Manufacturers Hanover Corp <MHC> and other banks told Texaco it would cut off a one billion dlr credit line, Texaco said in the court filing. Chase Manhattan Corp <CMB> and J.P. Morgan Co's <JPM> Morgan Guaranty Trust Co asked for deposits to cover transactions, it said. The severe conditions with suppliers and creditors arose from an unfavorable ruling last Monday by the U.S. Supreme Court in Texaco's ongoing dispute with Pennzoil Co <PZL> over the acquisition of Getty Oil Co in 1984. The High Court said Texas Courts must consider Texaco's plea to cut its 10.3 billion dlr bond while appealing the case. "Most of the suppliers stayed with us as long as they could," Elton said. But following Monday's Supreme Court ruling, Texaco's suppliers began demanding cash and halting supplies. "It wasn't until last Wednesday that it turned into an avalanche," he said. "Supplies were cut to the point where we could not run the system at anywhere near capacity." He said less than half of Texaco's oil supplies had been in jeapordy, but the cut off would have produced severe shortages by mid-May. Now the situation appears much less severe, Elton said. It said that Sonatrach, the Algerian national oil company, canceled future deliveries of crude oil and natural gas, Occidental Petroleum Co <OXY> demanded cash for crude, and Atlantic Richfield Co <ARC> asked for special safeguards. The company also said British Petroleum Co PLC <BP> last week refused to accept an order for fuel oil. But Yates today said, "a big U.K. company has in fact said they would go on supplying. They had cancelled last week." He declined to identify the company. <Petroleos de Venezuela S.A.>, the Venezuelan state oil company that supplies a large portion of Texaco's oil, also halted shipments two weeks ago, Yates said. But he added that Texaco expected to meet with the Venezuelans later today in an attempt to reestablish that key supply line. Talks were also expected to take place with the Algerians, he added. Bankruptcy specialists said it was likely Texaco's chapter 11 filing would allow the company to secure its credit lines and oil supplies that are key to the company's business. "It will be business as usual for Texaco," said Martin Klein, a bankruptcy attorney at the New York law firm Dreyer and Traub. "Creditors are a nervous bunch of people," he said. "But when the dust settles they will reevaluate the situation and will likely extend credit to the chapter 11 company." But other officials at Texaco were not immediately available to say whether discussions were being held with its banks, or whether credit lines had been reestablished.  
KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE. OPEC's credibility faces fresh scrutiny in coming weeks amid signs of a significant rise in supplies of oil to international oil markets, the Kuwait daily al-Qabas said. In an article headlined "Gulf oil sources say Middle East production up 1.4 mln bpd" and "Markets witness new surplus amid whispers of return to cheating days," it warned OPEC's official prices could face fresh pressure from international oil companies seeking cheaper supplies. It did not say whether only OPEC or Opec and other producers were behind the reported rise in Mideast output. Nor did it specify if the sources were official or other contacts. "The sources said the credibility of OPEC would come under fresh scrutiny from Monday, with activity in the European and American markets," it said. The sources were quoted as saying that after Opec had in March demonstrated its commitment to quota agreements, some members had raised output last week. It gave no details. "Dealers in oil markets were now waiting to see if Opec was able to control production, or whether the days of cheating and producing over quotas has begun anew," it reported. "The sources warned that maybe the (price of a) barrel of oil will fall below 18, perhaps 17.80 dlrs this week or next if there is no control on supplies. "The sources believed a return of oil below 18 dlrs a barrel may open the doors for international oil companies to pressure Opec over contract prices, similar to the struggle last March," it said, apparently referring to resistance by buyers to lift from Qatar unless it gave price discounts. "More than one official has warned Opec would find its solidarity under scrutiny by the end of April or start of May," it said, noting demand usually fell with the onset of summer.  
DOE RESOLVES ISSUES WITH ROYAL DUTCH <RD> UNIT. The Energy Department said it had approved in final form an agreement that resolves all remaining issues with Shell Oil Co over oil pricing and allocation controls that ended in 1981. Under the agreement, The Royal Dutch/Shell Group unit agreed to pay 20 mln dlrs to settle refiner pricing issues and 160 mln dlrs to settle crude oil pricing issues, DOE said. DOE said that before making the pact final, it modified it to reflect Shell's compliance with the Tertiary Incentive Program, a provision not in the version published last Dec 31.  
ABU DHABI MARKETING SAID NOT BREACHING OPEC PACT. A senior Abu Dhabi oil official said in remarks published today the emirate, largest producer in the United Arab Emirates (UAE), was succeeding in marketing its crude oil without breaching OPEC accords. Khalaf al-Oteiba, Marketing Director at the Abu Dhabi National Oil Co (ADNOC), told the company's Petroleum Community magazine ADNOC was also keen to keep good customer relations. "The company will maintain its dialogue with and care for its customers in accordance with market conditions...And take necessary steps to guarantee marketing its production," he said. "The present oil marketing policy of ADNOC is based on adherence to OPEC decisions of December 1986 to control production and establish a new pricing system in an attempt to stabilize the market," he added. OPEC agreed last December to limit production to 15.8 mln bpd and return to fixed prices averaging 18 dlrs a barrel. Oteiba said stabilization of the oil market in the future depended on how much discipline OPEC showed. Oteiba said last year, when world oil prices dropped, was ADNOC's most difficult ever but "a practical and flexible pricing policy was implemented to relate to the changed market environment." He said crude oil sales last year jumped to an average 609,000 bpd of which 73 pct was exported. Refined product sales totalled eight mln metric tonnes, of which 67 pct was exported. In 1985, ADNOC marketed a total of 476,000 bpd of crude oil and 7.2 mln tonnes of refined products.  
GULF CANADA <GOC> ACQUIRES SUEZ OIL STAKE. Gulf Canada Corp said it acquired a 25 pct working interest in the Gulf of Suez oil concession for undisclosed terms. The company said its agreement with operator Conoco Hurghada Inc and Hispanoil covered the 168,374-acre East Hurghada offshore concession. It said a 15.6 mln U.S. dlr four-well program was planned for 1987. After the acquisition, which is subject to Egyptian government approval, working interests in the Hurghada block will be Conoco Hurghada at 45 pct, Hispanoil 30 pct and Gulf Canada the balance.  
TEXACO FILING ADDS UNCERTAINTY IN OIL MARKET. U.S. oil traders said Texaco Inc's filing for protection under the Chapter 11 bankruptcy code is adding uncertainty to an already skittish oil market, but opinions are divided on the impact to the market. "The filing is holding up wet barrel trading today," said one trader. "Everyone is talking about it, assessing their company's situations in relation to Texaco," he added. Some traders said companies that deal with Texaco are concerned about whether they will receive payment or supplies under the bankruptcy filing. However, others were less worried. "The first paid will be the trading community and those connected with Texaco in the shipping industry," one New York trader said. "If Texaco doesn't get crude supplies it can't run its refineries, so its other assets would not be worth anything," he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoil's proposed purchase of Getty Oil Co. However, others were less worried. "The first paid will be the trading community and those connected with Texaco in the shipping industry," one New York trader said. "If Texaco doesn't get crude supplies it can't run its refineries, so its other assets would not be worth anything," he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoil's proposed purchase of Getty Oil Co. "There is some reluctance to trade with Texaco but no great change," said another trader, adding that traders are tending toward prudence in their dealings with the company. Traders are assessing whether to require cash prepayment or letters of credit, or to continue to trade as usual with Texaco on an open line basis, he said. Another trader, however, described today's activity as business as usual, adding that traders feel more secure because no liens can be put on Texaco's assets while it is in bankruptcy. Traders said there was no apparent effect of the Texaco filing on crude futures trading although they said the exchange might lower Texaco's position limit and require higher margins for Texaco's trades. New York Mercantile Exchange President Rosemary McFadden declined to comment on Texaco's futures trading, saying that is is proprietary information. McFadden did say, however, that as a matter of procedure, it is possible the exchange can lower allowable position limits or increase margin requirements for companies that are in financial trouble.  
ECUADOR SAYS WILL RESUME LIMITED OIL PRODUCTION. Ecuador will resume limited crude output next week to fill up storage tanks as a first step to pump oil to a Colombian pipeline on May one, the state Ecuadorean Petroleum Corp (CEPE) said. CEPE manager Carlos Romoleroux told reporters that Ecuador would begin pumping an unspecified amount of crude in northeastern jungle oilfields at the end of next week in preparation to send the oil through a new pipeline link-up to neighbouring Colombia. Oil production in Ecuador was halted on March five when an earthquake damaged the country's main pipeline from Lago Agrio, at the heart of the Ecuadorean jungle oilfields, to the pacific port of Balao. It will take at least until the end of July to repair the pipeline and return output to normal levels. The country was pumping between 245,000 bpd and 250,000 bpd before the tremor. To resume limited output in the meantime, Ecuador is constructing a 26 mile pipeline linkup, capable of carrying 55,000 bpd, from Lago Agrio to Puerto Colon, the starting point of Colombia's pipeline to the Pacific port of Tumaco. The original target date to resume limited crude output was May eight, the scheduled date for the inauguration of the Lago Agrio to Puerto Colon pipeline, an energy ministry spokesman said.  
SAUDI ARABIA WANTS TO INCREASE OIL SALES TO JAPAN. Saudi Arabia hopes to increase the volume of its oil exports to Japan through expanding bilateral trade, Saudi Arabian Interior Minister Naif bin Abdul-Aziz said. He told a Tokyo reception his country hopes to raise crude and products exports to Japan to earlier levels, but did not elaborate. To promote trade, Saudi Arabia is inviting Japanese industries to do business there, he said. Japanese firms now have long-term contracts to import a total of 150,000 barrels per day of Saudi crude.  
ECUADOR TO USE COLOMBIA OIL LINK FOR FIVE YEARS. Ecuador will use a new pipeline link with Colombia to export crude oil for the next five years, Colombian mines and energy minister Guillermo Perry said. The link will be inaugurated on May 8. It was built to allow Ecuador to resume exports of crude oil halted on March 5 by earthquake damage to its Lago Agrio to Balao pipeline, Once that pipeline is repaired, Ecuador will exceed its OPEC quota in order to offset lost income and pay debts contracted with Venezuela and Nigeria since the quake, Ecuador mines and energy minister Javier Espinosa said. The two ministers were speaking at a news conference after signing an agreement for joint oil exploration and exploitation of the jungle border zone between the two nations. Drilling will begin in September. "The agreement to transport Ecuadorean crude oil is not only for this emergency period but for the next five years, with possibility of an extension. Between 20,000 and 50,000 barrels per day (bpd) will be pumped along it," Perry said. Espinosa said Ecuador planned to pump 35 mln barrels through the link in the next five years, at a cost of 75 cents per barrel during the first year. The 43-km link, with a maximum capacity of 50,000 bpd, will run from Lago Agrio, the centre of of Ecuador's jungle oilfields, to an existing Colombian pipeline that runs to the Pacific port of Tumaco. Espinosa said the 32-km stretch of the link built on the Ecuadorean side cost 10.5 mln dlrs. Perry gave no figures for Colombia's 11 km segment but said it was "insignificant compared with what we are going to earn." OPEC member Ecuador was pumping around 250,000 bpd before the quake. Lost exports of 185,000 bpd are costing it 90 mln dlrs per month, Espinosa said.  
PEMEX OFFICIAL SAYS OPEC OUTPUT CRITICAL TO PRICE. Crude oil prices could remain around 18 dlrs a barrel until the end of the year, but OPEC's decision on output at its next meeting would be the critical factor, an official of Mexico's state oil company, Petroleos Mexicanos (Pemex), told a group of Japanese businessmen. Adrian Lajous, Pemex' executive vice president of international trade, said current OPEC output already appeared to be very near the 16.6 mln barrel per day level it set itself for the third quarter. "Production is surging ahead of what was originally planned, while demand is growing more slowly than envisaged a few months ago," he said. He said OPEC had to look very carefully at what level of production in the third quarter would effectively sustain the 18 dlrs price, and that an increase to what had originally been envisaged might soften price levels. The 13-member cartel is scheduled to meet on June 25 in Vienna to review its December accord on prices and output. "I hope OPEC will follow a very conservative attitude in terms of volume decisions," Lajous said. A repetition of what happened last year, when OPEC boosted output and sent oil prices tumbling down below 10 dlrs, is always there as a possibility, he said. "I hope never again to go through the trauma of 1986. I expect other oil exporters have learned their lessons and discipline will be maintained," he said. Lajous said there was still excess supply and as long as this remains there will be a tendency to instability in oil markets, but prices should remain around 18 to 19 dlrs during 1987 if output remains under control. He said Saudi King Fahd's remarks last month, that increased production was not so important as long as incomes would not be affected by the output, were "very relevant and welcome from such a powerful producer."  
SAUDI RENEGOTIATION OF ARAMCO DEAL MOVING ALONG. Saudi Arabia's renegotiation of its collective agreement with Aramco to purchase oil for the latter's ex-partners is moving along and should lead to a fundamental structural change in the contract, oil industry sources said. Petroleum Intelligence Weekly, in this Monday's edition, said negotiations are moving along for adjustment of the 1.34 mln bpd joint long term agreement at official prices and volumes and other terms may be rearranged. The agreement signed in January for the months from February to June is up for renegotiation. Under the January contract Aramco was to purchase 1.34 mln bpd for the four partners allocated among them as Exxon Corp <XON> 440,000 bpd, Texaco Inc <TX> 350,000 bpd, Mobil Corp <MOB> and Chevron Corp <CHV> 550,000 bpd between them. But an overlifting by Texaco Inc in the first quarter allowed other companies like Exxon Corp to underlift its obligations under the contract PIW said that that one alternative under consideration is to revert to four individual contracts rather than a collective agrement. John Lichtblau, director of the Petroleum Industry Research Foundation Inc said that renegotiation of the pact was more of a formality as the Saudis have each company on a separate schedule although separate agreements with the companies would favor one on one negotiations and ensure that contracted liftings occur . "The companies will probably follow the Saudi wants within limits as they do not want to antagonize them for the long haul," he said. Lichtblau said that the renegotiations would most likely concentrate on volume rather than price. Saudi displeasure with the agreement has long been noted and in April industry publications said that renegotiation were being sought, a fact later confirmed by Reuters with Aramco. Aramco Corp was formerly owned by Chevron Corp <CHV>, Exxon Corp <XON>, Mobil Corp <MOB> and Texaco Inc <TX> but is now owned by Saudi Arabia which bought its assets although the ex-partners have various agreements with Saudi Arabia.  
1-JUN-1987 11:14:25.82. 1-JUN-1987 11:14:25.82 
COMPROMISE SEEN LIKELY OVER CONOCO-STATOIL DISPUTE. Norway is expected to seek a compromise solution to defuse a row between Den Norske Stats Oljeselskap A/S <STAT.OL> (Statoil) and Conoco Norge A/S over which firm will operate the Heidrun oil field, government sources said. The sources, who asked not to be named, said the government will likely recommend that Conoco be allowed to continue as the field's operator through the development phase, with Statoil taking over only after production starts in the early 1990s. Oil Minister Arne Oeien told Reuters the government had today discused the Heidrun matter but that no final decision had been taken and several questions remained unresolved. It was unlikely the government would announce its decision on Heidrun operatorship until after Thursday's cabinet meeting and after discussing a proposed solution with both companies, the sources added. This spring Norway's state-owned oil company Statoil exercised an option in the Heidrun field exploration license that, if approved by the government, would allow it to relieve Conoco as Heidrun operator, a move sharply criticised by Conoco. Heidrun is often cited by the government and industry as the most likely candidate for the first field development project on the Haltenbanken exploration tract off central Norway.  
BASIN PIPELINE TEXAS/OKLA BORDER WASHED OUT BY FLOODS SOME 300,000 BPD CRUDE AFFECTED..  BASIN PIPELINE TEXAS/OKLA BORDER WASHED OUT BY FLOODS SOME 300,000 BPD CRUDE AFFECTED.  
MAJOR U.S. OIL PIPELINE SHUT DOWN BY FLOODS. Flooding in the Red River on the Texas/Oklahoma border has shut down the Basin Pipeline, a 24-inch pipeline that transports as much as 300,000 barrels per day of sweet and sour crudes from Texas to Cushing, Okla, a Texaco Pipeline Co spokesman confirmed. "The water is rushing by so fast that we can't get any divers down to assess the damage but there is some possibility that the pipeline could be up by the end of the week," a company source said. The pipeline transmits roughly two-thirds sour crude and one-third sweet crude oil from the Midland, Texas region. Texaco sources said that if the pipeline service is restored by Friday there would be little problem in restoring oil which has been lost to the flood. "But if the pipeline is down more than 10 days it will be difficult to make up without prorationing and we would not like to proration this pipeline, if we don't have to." The Basin Pipeline is jointly owned by Atlantic Richfield Corp <ARC>, Shell Oil Co, a subsidiary of the Royal Dutch/Shell Group <RD> and Texaco Inc <TX>, which is the pipeline's operator. Peter Beutel, analyst at Elders Futures Inc, said crude oil futures contracts on New York Mercantile Exchange rose to new highs this afternoon following news of the pipeline break. July crude futures of West Texas Intermediate traded up to 19.60 dlrs a barrel, a rise of more than 20 cts. Cash market prices also firmed on the news with sellers of WTI raising offers to 19.60 dlrs a barrel. Sour crudes, which would be most affected by the pipeline shutdown, however, were slow to react to the news with West Texas Sour and Alaska North Slope holding 50 cts to one dlr a barrel below WTI, respectively. Dan Stevens, manager of public and government affairs at Texaco, said the company hopes to fix the pipeline in five days but that will depend on when the water level of the Red River recedes. There is already evidence that the water level is dropping and it appears the rain has stopped in the area affecting the pipeline, Stevens said. He said the segment of the pipeline that was damaged was underground and at a distance from the Red River that flooded. The pipeline runs over the Red River and under the subsoil nearby, according to Stevens. He said some of this subsoil was apparently washed away.  The potential for environmental damage is being downplayed at this time despite the volume of oil that runs through this line. Texaco's Stevens said that aerial surveillance has not found any crude on the water in the river or in Lake Texoma, which is nearby.  
CONGRESSMAN SAYS U.S. UNPREPARED FOR OIL CUTOFF. Rep. Mike Synar said today that while President Reagan is ready to use military force to protect Kuwait tankers in the Gulf, the United States is ill-prepared at home to deal with a new energy crisis. Synar, Democrat of Oklahoma, made his remarks in comments on a study by the General Accounting Office (GAO) on the U.S. participation in the 1985 test of the emergency oil sharing program of the International Energy Agency. The IEA, an alliance of 21 oil consuming countries, was formed after the 1973-74 Arab oil embargo to find ways to deal with any future oil cutoff. Synar said, "the president is prepared to take military action to protect Kuwaiti oil tankers but has been unwilling to take less dangerous, equally-important action to prepare our nation for the next energy crisis." Reagan said the U.S. military would protect Kuwaiti oilers to assure the West of a continuing supply of Middle East oil, increasingly being threatened by the Iranian-Iraqi war. Synar, who asked for the GAO report after criticism of U.S. action in a previous IEA test, said the United States successfully advocated a test limited to training participants in oil sharing procedures and the system's mechanical aspects.  
TOTAL PETROLEUM <TPN> SHUTS TEXAS PIPELINES. Total Petroleum NA <TPN> shut down several small crude oil pipelines operating near the Texas/Oklahoma border last Friday as a precaution against damage from local flooding, according to Gary Zollinger, manager of operations. Total shut a 12-inch line that runs across the Ouachita River from Wynnewood to Ardmore with a capacity of 62,000 bpd as well as several smaller pipelines a few inches wide with capacities of several thousand bpd or less, Zollinger said. The Basin Pipeline, a major pipeline running 300,000 bpd, run by a consortium of other oil companies, was closed today. One other small pipeline that Total also closed has a capacity of 3,000 to 4,000 bpd and crosses the Red River in Fargo, Texas, Zollinger said. He said the closed pipelines run under river water and could be damaged as the flooded rivers erode the river banks and expose the piping. Zollinger said Total is waiting for the river waters to recede before they reactivate the pipelines.  
DOE REACHES PROPOSED OIL SETTLEMENTS. The Energy Department said it reached proposed oil pricing settlements totaling 680,150 dlrs with the operator and four working interest owners of A.D. LeBlanc No. 1 well, Vermillion Parish, La. Trigon Exploration Co., Inc operated the well from June 1979 to January 1981 for D. Bryan Ferguson, C. William Rogers, Omni Drilling Partnership No 1978-2 and Entex Inc. DOE alleged Trigon caused overcharges of 624,208 dlrs by improperly classifying its oil as "newly discovered crude," a classification that allowed charging higher prices during a period of price controls. It said the proposed settlements would resolve disputes over possible violations by the five parties. DOE added that in agreeing to the settlements, the five did not admit any violations or non-compliance with its regulations. It said it would receive written comments on the settlements before making it final.  
SOUTH KOREA INCREASES DUTY ON CRUDE IMPORTS. South Korea has increased its duty on crude oil imports to 4.29 dlrs a barrel from 3.29 dlrs, effective today, the energy ministry said. The duty, to raise funds for special energy projects, was adjusted after average crude import prices rose to 16.85 dlrs a barrel in April, from 16.65 dlrs in March and 13.08 dlrs in April 1986, ministry officials said. A separate 24.5 pct import tax on crude oil is unchanged.  
MEES NEWSLETTER SAYS OMAN OFFERS OIL DISCOUNTS. Oman has granted term crude oil customers retroactive discounts from official prices of 30 to 38 cents per barrel on liftings made during February, March and April, the weekly newsletter Middle East Economic Survey (MEES) said. MEES said the price adjustments, arrived at through negotiations between the Omani oil ministry and companies concerned, are designed to compensate for the difference between market-related prices and the official price of 17.63 dlrs per barrel adopted by non-OPEC Oman since February.  
SAUDI ARABIA WILL NOT AGREE "MAD" OIL PRICE RISE. Saudi Arabia's Oil Minister Hisham Nazer said Riyadh would not agree to a cut in oil prices and would not accept a "mad" increase that would drive consumers away. He told al-Riyadh newspaper, "Saudi Arabia follows a balanced petroleum policy. It does not approve of a decrease in prices from current levels and it also does not accept a mad increase that would drive consumers away and make them try and find alternative sources (for energy)." OPEC agreed last December to cut production after world prices hit new lows in 1986. They agreed on a pricing system aimed to stabilise the market around 18 dlrs a barrel. OPEC is scheduled to meet in Vienna on June 25, where it will review its current oil price and production policy. Saudi Arabia's King Fahd said last month that he wanted oil prices to remain stable for the next two years. Saudi Arabia is the architect of the current pricing and production pact, which is backed by Kuwait and the UAE. The current pact set a production ceiling for first half 1987 of 15.8 mln bpd, and implemented fixed prices based on an 18 dlrs a barrel average.  
SAUDI ARABIA OPPOSES DRASTIC CHANGE IN OIL PRICE. Saudi Arabia's Oil Minister Hisham Nazer said Riyadh would not agree to a cut in oil prices and would not accept a "mad" increase that would drive consumers away. He told al-Riyadh newspaper, "Saudi Arabia follows a balanced petroleum policy. It does not approve of a decrease in prices from current levels and it also does not accept a mad increase that would drive consumers away and make them try and find alternative sources (for energy)." OPEC agreed last December to cut production after world prices hit new lows in 1986. They agreed on a pricing system aimed to stabilize the market around 18 dlrs a barrel.  OPEC is scheduled to meet in Vienna on June 25, where it will review its current oil price and production policy. Saudi Arabia's King Fahd said last month that he wanted oil prices to remain stable for the next two years. Saudi Arabia is the architect of the current pricing and production pact, which is backed by Kuwait and the UAE. The current pact set a production ceiling for first half 1987 of 15.8 mln bpd, and implemented fixed prices based on an 18 dlrs a barrel average.  
U.S. ENERGY SECRETARY SEES HIGHER OIL PRICES. Energy Secretary Donald Hodel said he expects oil prices to rise significantly by the year 2000, probably to around 33 dlrs a barrel in current dollars. "I do anticipate a significant increase (by 2000). Thirty-three dlrs a barrel is not unreasonable," Hodel told the Senate Energy Committee. Hodel said the loss of some domestic oil production through the shutdown of stripper (10 barrels a day or less) wells because of low prices was probably permanent. He said he was also concerned by the decline in domestic oil exploration. Hodel urged Congress to approve oil exploration in section 1002 of the Arctic National Wildlife Refuge in Alaska. He said geologic condtions in the area were favorable for the discovery of oil fields equal to those in nearby Prudhoe Bay.  
LUKMAN SEES STABLE OIL PRICE FOR NEXT COUPLE YEARS. The current crude oil price of between 18 and 20 dlrs a barrel will remain stable over the next couple of years, rising only one to two dlrs a barrel per annum to keep up with inflation, OPEC President Rilwanu Lukman said. Lukman, who was speaking during talks with Swedish trade officials, said the stable price depended upon output restraint by both OPEC and non-OPEC oil producers, Swedish government officials said. They said Lukman, who is also Nigerian oil minister, made the remarks whilst talking about the connection between Third World debt and industrialised nations. Crude oil output controls did not necessarily mean higher energy bills for the world's industrial nations, Lukman said. Although very low oil prices, such as those seen around the beginning of the year, may appear beneficial for the industrial countries that depend on imported energy, they would only lead to wastage and overdependence on the fuel in the long term, he said. This in turn would bring a swing back to extremely high prices, he added. Sweden, heavily dependent on imported oil, suffered a major crisis in the mid-1970s, when oil prices spiralled.  
ENERGY SECRETARY SEES HIGHER OIL PRICES. Energy Secretary Donald Hodel said he expects oil prices to rise significantly by the year 2000, probably to around 33 dlrs a barrel in current dollars. "I do anticipate a significant increase (by 2000). Thirty-three dlrs a barrel is not unreasonable," Hodel told the Senate Energy Committee. Hodel said the loss of some domestic oil production through the shutdown of stripper (10 barrels a day or less) wells because of low prices was probably permanent. He said he was also concerned by the decline in domestic oil exploration. Hodel urged Congress to approve oil exploration in section 1002 of the Arctic National Wildlife Refuge in Alaska. He said geologic condtions in the area were favorable for the discovery of oil fields equal to those in nearby Prudhoe Bay. "The area could contain potentially recoverable oil resources of more than 9.2 billion barrels, an amount nearly equal to the Prudhoe Bay oil field, which currently provides almost one-fifth of U.S. domestic production," Hodel said. He said production from the new section could begin about the time Prudhoe Bay production begins to decline in 2000 without endangering caribou or other wildlife in the area.  
MAJOR U.S. PIPELINE MAY BE CLOSED SEVERAL DAYS. The operator of a major U.S. crude oil pipeline, shutdown because of flood damage, said it may be several days before repairs are made and the system is functioning again. Dan Stevens, manager of public and government affairs at Texaco Inc <TX>, operator of the pipeline through its subsidiary Texaco Pipeline Co, said the company hopes repairs will begin in about five days and expects it to take several more days to complete. "At this point we are lining up what we know we need, to get the job done," Stevens said, adding that the timing for repairs will depend on the damage to the pipeline which is difficult to assess because of flooding on the Red River. The pipeline was shipping roughly 225,000 barrels of crude oil per day, or about 55 pct of its capacity during the 30 days preceding its shutdown on Saturday, Stevens said. The pipeline was shut down from Cushing, Okla, to Witchita Falls, Kan, on Saturday due to an undetermined leak at the Red River crossing, near the Oklahoma/Texas border, because of severe rains, a spokesman for Texaco said. Stevens said it was reasonable to suggest the pipeline could operate at full capacity when it reopens in order to make up for the shortfull but cautioned they will talk with customers to determine their requirements. Oil analysts and traders said they were not sure if the shutdown will continue to raise U.S. oil prices. Monday, after Texaco confirmed that the pipeline had been closed, West Texas Intermediate crude in the spot market and on New York Mercantile Exchange's energy futures complex rose 20 cts a barrel. Stevens said it was reasonable to suggest the pipeline could operate at full capacity when it reopens in order to make up for the shortfull but cautioned they will talk with customers to determine their requirements. Oil analysts and traders said they were not sure if the shutdown will continue to raise U.S. oil prices. Monday, after Texaco confirmed that the pipeline had been closed, West Texas Intermediate crude in the spot market and on New York Mercantile Exchange's energy futures complex rose 20 cts a barrel.  
ASAMERA <ASM> COMPLETES REFINERY SALE. Asamera Inc said wholly owned Asamera Oil (U.S.) Inc concluded the 25.25 mln U.S. dlr sale of its Denver refinery to Total Petroleum North America Ltd. In addition, Total is purchasing crude oil and refined product inventories at market value, Asamera said.  
COLOMBIAN GROUP SUSPENDS BOMBINGS OF PIPELINES. A Colombian group announced the suspension of its bombings of oil pipelines pending the government's levy of a social tax on foreign petroleum companies and an 800 mln dlrs fine on the Occidental Petroleum Corp <OXY>. There was no indication the government would meet the conditions demanded by the leftist National Liberation Army (ELN). According to the state oil firm, ECOPETROL, the ELN carried out 72 attacks on petroleum pipelines between 1984 and 1986. The assaults, the most recent launched two months ago, have caused an estimated total of 50 mln dlrs in damage. In a communique, the ELN said it would demand a tax of one dollar per barrel of crude oil pumped by foreign firms as a condition for maintaining its suspension of the assaults. Foreign oil firms pump an average of 225,083 barrels per day in Colombia. Colombian tax authorities are investigating Occidental, a U.S.-owned firm, for alleged tax evasion. If the charges are proven, the firm could face a fine of up to 800 mln dlrs. The ELN demands the government charge the penalty.  
AUSTRALIAN CRUDE OUTPUT FALLS IN FIRST NINE MONTHS. Australian crude oil and condensate output fell 7.6 pct to 23,480 megalitres, or about 147 mln barrels, in the first nine months of fiscal 1986/87 ending June 30, the Department of Resources and Energy said. The decline in production in the nine months to end-March reflected mainly a sharp dip early in the fiscal year, when low oil prices and high marginal excise rates led to a reduction of output from Bass Strait, department figures in its Major Energy Statistics publication show. A megalitre is 6,290 barrels.  
INDONESIA CUTS JULY CRUDE SUPPLIES TO JAPAN. Indonesia's state oil company, Pertamina, has informed its affiliated Japanese companies that crude oil supplies will be 40 pct less than contractual volumes in July, a spokesman for an affiliated company said. He said the allocations were in line with Indonesia's production ceiling under its current OPEC quota, so they might be increased if OPEC ratifies a production rise next week. Allocations of Indonesia's main traded crude, Minas, had been cut by 50 pct and Duri by 38 pct, he said. Last month contractual volumes were cut by 30 pct. Contractual volumes assume no production ceiling. Oil traders said Indonesian grades were already trading above their official selling prices (osp) on the spot market due to strong demand from Japan and the U.S. And tight supplies. A cargo of Duri loading in July was reportedly traded yesterday at 70 cents over its osp of 15.60 dlrs per barrel and Minas is trading about 20 cents higher, they said.  
OPEC DIFFERENTIALS NOT SEEN POSING MAJOR PROBLEMS. Some OPEC states are unhappy about the prices assigned to their crude oil but this should not pose great problems when the group reviews its six-month-old price and output pact in Vienna next week, oil analysts say. They said Nigeria, which holds the OPEC conference presidency, and Qatar probably have the biggest grievances about price differentials making some of their crudes uncompetitive. There has also been speculation by Japanese traders that OPEC might want to mark up prices of high-sulphur heavy crudes, to correspond with greater demand and higher fuel oil prices. But most experts agree that a major overhaul of price differentials is unlikely, so as to avoid giving the market signals of a dent in OPEC's new unity. "All OPEC members can make a good case for changing differentials," said one analyst with a major oil company. "But at the end of the day, the attitude is going to be "leave well alone' and little or nothing is likely to be altered." Iran, Libya and Saudi Arabia are among those who also saw sales problems earlier this year, traders say. But diminished customer resistance to fixed prices and, in some cases, marketing incentives have helped their sales. Some producers can sell uncompetitively priced crudes by means of discounts, processing deals or selling them alongside better priced grades in a "package." Many OPEC crudes are seen to be reasonably priced, at least for some part of the year. But many experts say OPEC should change prices quarterly or monthly to match seasonal demand for fuel oil-rich heavy crudes and gasoline-rich lighter grades. At its last meeting in December, OPEC agreed to reintroduce fixed prices from February 1 around an 18 dlr per barrel reference point. Official prices had been effectively dropped in 1985 when members offered discounts to attract customers. OPEC also decided to limit first-half 1987 output to 15.8 mln bpd and proposed ceilings of 16.6 mln for the third quarter and 18.3 mln for the fourth. Analysts expect it will now extend or raise slightly the current ceiling for the coming months. Spot market and netback values for some crudes do not mirror official prices, but OPEC will probably keep the 18 dlr target and at most make minimal changes to differentials, analysts say. The 18 dlr figure is based on a basket of six OPEC and one non-OPEC crudes. OPEC assigned prices to its other key export crudes, with a 2.65 dlr gap between the heaviest and lightest. Extra heavy crudes were among those left out. Industry estimates vary on the proportion of OPEC oil exports actually sold at official prices. Several experts say only one-quarter to one-third of the total in fact sells at official prices, with some of the rest included in processing or barter deals or sold in the form of refined products. Problems with the new structure appeared earlier this year, when some producers' output fell due to customer reluctance to pay the new prices. Nigeria especially found its gasoline-rich Bonny Light crude -- now OPEC's highest priced grade at 18.92 dlrs a barrel -- was uncompetitive on the spot market against Britain's Brent. In February and March, Nigeria's production shrank below its 1.238 mln bpd OPEC quota. Spot prices have since revived, due partly to seasonal demand for gasoline, and its output has risen. Some experts feel Bonny Light is still overvalued and say its price should be cut by between 50 cts to one dlr a barrel. But Mehdi Varzi, chief oil analyst with London's Kleinwort Grieveson Securities, doubts Nigeria will actively push the differentials question in Vienna. "It would not look good for OPEC unity if Nigeria, which holds the presidency, raised the issue," he said.  
SHELL CANADA RAISES CRUDE OIL POSTING 32 CANADIAN CTS/BBL.  SHELL CANADA RAISES CRUDE OIL POSTING 32 CANADIAN CTS/BBL  
IMPERIAL OIL RAISES CRUDE OIL POSTINGS 32 CANADIAN. CTS/BBL, LIGHT SWEET NOW 25.60   IMPERIAL OIL RAISES CRUDE OIL POSTINGS 32 CANADIAN CTS/BBL, LIGHT SWEET NOW 25.60   
PHILLIPS RAISES CRUDE OIL POSTED PRICES 50 CTS/BBL. EFFECTIVE YESTERDAY, WTI NOW 19 DLRS.  PHILLIPS RAISES CRUDE OIL POSTED PRICES 50 CTS/BBL EFFECTIVE YESTERDAY, WTI NOW 19 DLRS.  
SHELL CANADA <SHC> RAISES CRUDE 32 CTS CANADIAN. Shell Canada <SHC>, whose majority interest is owned by the Royal Dutch/Shell Group of companies, raised the postings of light sweet and sour crude oil from Edmonton/Swann Hills 32 Canadian cts a barrel, effective today. The new price for light sweet crude oil is 25.60 Canadian dlrs a barrel while the new price for light sweet sour crude is 24.08 Canadian dlrs a barrel. The Royal Dtuch/Shell Group owns 72 pct of Shell Canada and public shareholders, primarily Canadian, own the remaining 28 pct of the company, a Shell Canada spokesman said.  
UNION PACIFIC RAISES CRUDE OIL POSTINGS 50 CTS. A BBL, EFFECTIVE YESTERDAY, WTI TO 19 DLRS.  UNION PACIFIC RAISES CRUDE OIL POSTINGS 50 CTS A BBL, EFFECTIVE YESTERDAY, WTI TO 19 DLRS.  
IMPERIAL OIL <IMO.A> RAISES CRUDE 32 CANADIAN CTS. Canadian Imperial Oil, 70 pct Exxon owned, said it raised its posting for light sweet crude oil at Edmonton by 32 canadian cts a barrel, effective today. The company said its new posting for light sweet crude oil at Edmonton is 25.60 canadian dlrs a barrel.  
DIAMOND SHAMROCK RAISES CRUDE OIL POSTED PRICES 50 CTS. A BBL, EFFECTIVE YESTERDAY, WTI TO 19 DLRS.  DIAMOND SHAMROCK RAISES CRUDE OIL POSTED PRICES 50 CTS A BBL, EFFECTIVE YESTERDAY, WTI TO 19 DLRS.  
COASTAL RAISES CRUDE OIL POSTINGS 50 CTS/BBL YESTERDAY,. WTI TO 19 DLRS  COASTAL RAISES CRUDE OIL POSTINGS 50 CTS/BBL YESTERDAY, WTI TO 19 DLRS  
SOUTHLAND CORP RAISED CRUDE OIL POSTINGS 50 CTS/BBL, WTI. NOW 19 DLRS/BBL  SOUTHLAND CORP RAISED CRUDE OIL POSTINGS 50 CTS/BBL, WTI NOW 19 DLRS/BBL  
MURPHY RAISES CRUDE OIL POSTINGS 50 CTS A BBL YESTERDAY,. WTI TO 19 DLRS  MURPHY RAISES CRUDE OIL POSTINGS 50 CTS A BBL YESTERDAY, WTI TO 19 DLRS  
PERMIAN RAISES CRUDE OIL POSTINGS 50 CTS. A BBL, WTI TO 19 DLRS  PERMIAN RAISES CRUDE OIL POSTINGS 50 CTS A BBL, WTI TO 19 DLRS  
SOUTHLAND <SLC> UNIT RAISES CRUDE 50 CTS/BBL. Southland Corp's subsidiary Citgo Petroleum said it raised its posted prices for crude oil across the board by 50 cts a barrel, effective June 17. Citgo said its new posting for West Texas Intermediate and West Texas Sour is 19 dlrs a barrel. Light Louisiana Sweet is now posted at 19.35, the company said.  
MURPHY OIL <MUR> RAISES CRUDE POSTINGS. Murphy Oil said it increased its crude oil posted prices by 50 cts a barrel, effective June 17. The company said its new posting for West Texas Intermediate and West Texas Sour is 19 dlrs a barrel. Light Louisiana Sweet crude is now 19.35 dollars a barrel, the company said. Increases follow a general trend in the industry started yesterday by Sun Co.  
PHILLIPS PETROLEUM <P> RAISES CRUDE POSTINGS. Phillips Petroleum Co said it raised its crude oil posted prices for West Texas Intermediate and West Texas Sour by 50 cts a barrel, effective June 17. The company said the new posted price for WTI and WTS is 19 dlrs a barrel. The increase is in reaction to Sun Co raising postings similarly yesterday.  
PETRO-CANADA RAISES CRUDE POSTINGS 32 CTS CANADIAN/BBL.. SWEET CRUDE AT 25.60 DLRS CANADIAN/BBL.  PETRO-CANADA RAISES CRUDE POSTINGS 32 CTS CANADIAN/BBL. SWEET CRUDE AT 25.60 DLRS CANADIAN/BBL.  
UNION PACIFIC <UNP> RAISES CRUDE OIL PRICES. Union Pacific Resources, formerly Champlin Petroleum, said it raised posted prices for crude oil by 50 cts a barrel, effective yesterday. The price increase brings West Texas Intermediate, the U.S. benchmark grade, to 19.00 dlrs a barrel. The posted price increase follows a similar move by several other oil companies. Sun Co was the first to raise crude oil postings yesterday afternoon and today many other companies are following. The last price increase made by oil companies was around May 22.  
MARATHON RAISES CRUDE OIL POSTINGS 50 CTS/BBL, WTI NOW. 19.00 DLRS.  MARATHON RAISES CRUDE OIL POSTINGS 50 CTS/BBL, WTI NOW 19.00 DLRS.  
COASTAL <CGP> CRUDE POSTING UP 50 CTS/BBL. Coastal Corp <CGP> said it raised the postings of crude oil 50 cts a barrel across the board, effective yesterday, June 17. The new price for West Texas Intermediate is 19.00 dlrs a barrel. For West Texas Sour the new price is 18.10 dlrs a barrel.  
NATIONAL INTERGROUP <NII> UNIT RAISES CRUDE PRICES. Permian Corp, a subsidiary of National Intergroup, said it raised its crude oil postings by 50 cts a barrel, effective June 17. the company said its new posted price for West Texas Intermediate and West Texas Sour is 19 dlrs a barrel, while Light Louisiana Sweet is now 19.35. The price hike follows other increases industrywide.  
PETRO-CANADA CRUDE UP 32 CTS CANADIAN/BBL. Petro-Canada, a state-owned oil company, raised the posting prices of sweet and sour crude oils 32 cts Canadian per barrel, effective today, the company said. The change brings the price of light sweet crude to 26.50 dlrs Canadian per barrel and the price of light sour crude to 23.77 dlrs Canadian a barrel. The crude oils are from Edmonton/Swann Hills.  
U.K. COURT RULES AGAINST RTZ ON OIL FIELD COSTS. The U.K. High Court dismissed an appeal by Rio Tinto-Zinc Corp Plc's <RTZL.L> RTZ Oil and Gas Ltd unit and ruled that the financial provisions a company makes for the future cost of abandoning an oil field are not tax deductible, the Press Association reported. The company was appealing against a decision of the Tax Commissioners that any such provision was a capital expenditure, not a revenue expenditure, and was not deductible. The court was told that since 1976 the company had made an annual provision of around 750,000 stg for the eventual cost of abandoning a rig. An RTZ spokesman said the ruling was not worrying as the subsidiary had assumed that the provisions were not deductible from corporation tax payable. It would have been a bonus if the company had won but all budgeting had been on the assumption that it would not, he said. Oil analysts said that RTZ's assumption of liability was shared by the industry as a whole. The ruling appeared to mean that tax relief on the expensive process of abandoning rigs would apply when the expense occurred, not when provisions for future expenses were built into the accounts, one analyst added.  
UNOCAL RAISED CRUDE OIL POSTINGS 50 CTS/BBL, WTI NOW 19. DLRS/BBL  UNOCAL RAISED CRUDE OIL POSTINGS 50 CTS/BBL, WTI NOW 19 DLRS/BBL  
UNOCAL <UCL> RAISED CRUDE OIL POSTINGS BY 50 CTS/BBL. Unocal said it raised its postings for crude oil by 50 cts a barrel, effective June 17. The company said it is now posting West Texas Intermediate and West Texas Sour at 19 dlrs a barrel. Unocal said its new Light Louisiana Sweet posted price is 19.35 dlrs a barrel. the price move follows a wave of increases initiated by Sun Co yesterday.  
DIAMOND SHAMROCK <DRM> RAISES CRUDE POSTINGS. Diamond Shamrock R and M said it raised its crude oil contract prices by 50 cts a barrel, effective June 17. The company said its new posting for West Texas Intermediate crude is 19 dlrs a barrel. The price increase follows similar moves by several other companies.  
DUPONT UNIT RAISES CRUDE OIL POSTINGS 50 CTS/BBL,. EFFECTIVE YESTERDAY  DUPONT UNIT RAISES CRUDE OIL POSTINGS 50 CTS/BBL, EFFECTIVE YESTERDAY  
DUPONT UNIT RAISES CRUDE OIL POSTINGS. Conoco Inc, a subsidiary of duPont deNemours <DD>, said it raised the contract price it will pay for all grades of crude oil 50 cts a barrel, effective yesterday. The increase brings Conoco's posted price for West Texas Intermediate to 19.00 dlrs a barrel. The West Texas Sour grade, at 34 API, now stands at 18.10 dlrs a barrel. Light Louisiana was also raised 50 cts to 19.35 dlrs barrel. Conoco last changed its crude postings on May 21.  
SRI LANKA PLANS TO RENEW ABU DHABI OIL CONTRACT. Ceylon Petroleum Corp (CPC) has decided to renew its one-year contract with Abu Dhabi for 480,000 tonnes of Upper Zakum crude oil, CPC officials told Reuters. They said CPC made the recommendation to the cabinet and is now awaiting its approval. CPC's one-year contract with Abu Dhabi expired on May 31 this year and it wants the renewed contract to begin on June 1 at the government selling price. Delivery will be determined in the course of the year. Last year, shipments were in three parcels of 120,000 tonnes each and four of 30,000 tonnes each. CPC officials also said the company agreed with the Egyptian government for the supply of 240,000 tonnes of Gulf of Suez crude for delivery in two shipments this year at the government selling price. Last year, CPC bought 120,000 tonnes Gulf of Suez through C.Itoh. Officials said plans to buy 240,000 tonnes of Basra Light from Iraq have not been finalised yet because of several constraints. CPC said it could not accept 120,000 tonne parcels and proposed to lift 30,000 tonnes in eight shipments. Iraq National Oil Co (INOC) told CPC a Red Sea port where lifting was to take place could not accept small ships. INOC then proposed to deliver eight shipments of 30,000 tonnes each. CPC said INOC planned to ship the oil to an Indian port for delivery of Indian requirements, later going to Colombo to offload CPC's needs, but CPC considered this unsuitable. CPC said it had not received a reply from INOC since December. Sri Lanka imports all its annual needs of 1.7 mln tonnes. This year it plans to buy 400,000 tonnes on the spot market compared with about 1.3 mln tonnes last year.  
OPEC PRESIDENT LUKMAN EXPECTS SHORT, CALM MEETING. OPEC conference president Rilwanu Lukman said he expects next week's ministerial meeting in Vienna to be brief and calm and that OPEC's current price and production agreement may only need a slight review. "I expect the meeting in Vienna to be short and calm," Lukman, who is also Nigerian oil minister, told reporters here ahead of his departure on Sunday for the conference, which starts June 25. "We already have an agreement which may need only a slight review," Lukman said. The agreement reached at a long session of OPEC ministers in December last year pegged the group's crude oil output at 15.8 mln bpd for first half 1987 at fixed prices of around 18 dlrs a barrel. Since then prices have risen from 15 dlrs in December to just above the official OPEC levels, with oil industry analysts firmly convinced the organisation will maintain the agreement to keep the market stable. "I myself believe that OPEC will tend to take a position to strengthen the gains we have made so far," Lukman said. He declined to say if the current ceiling should be maintained or raised to 16.6 mln bpd for the third quarter and 18.3 mln for the fourth as provisionally agreed last December. "Whatever decision we arrive at will be guided by our collective will to keep the market strong," he said. He said non-OPEC member Norway, which he visited two weeks ago, had pledged further cooperation with the group and this was significant for its members. Lukman said heavy destocking by consumers early this year when OPEC's fixed price regime came into effect and a restocking now for the winter was responsible for current market strength.  
TEXACO CANADA RAISES CRUDE OIL POSTINGS 24 CANADIAN. CTS/BBL, LIGHT SWEET NOW 25.60 DLRS/BBL  TEXACO CANADA RAISES CRUDE OIL POSTINGS 24 CANADIAN CTS/BBL, LIGHT SWEET NOW 25.60 DLRS/BBL  
TEXACO <TXC> CANADA TO RAISE CRUDE OIL POSTINGS. Texaco Inc's Texaco Canada said it will raise  postings for its Edmonton/Swann Hills crude by 24 canadian cts a barrel, effective June 20. The company said the new posting for Edmonton/Swann Hills will be 25.60 dlrs a barrel. The price hike follows a round of crude oil price increases started late June 17 by Sun Co. The other major canadian crude suppliers raised prices June 18.  
U.S. OIL PRICES STRONG AHEAD OF OPEC MEETING. U.S. crude oil prices are at their highest level in more than a year ahead of next week's OPEC meeting, even though most industry analysts do not expect any policy changes from the session. They said prices, which have steadily climbed since the organization's accord in December, have risen on technical factors within the market and concerns about supplies because of the Iran-Iraq war, which could disrupt deliveries from the Gulf. The U.S. benchmark crude West Texas Intermediate is trading around 20.55 dlrs in the July contract on New York Mercantile Exchange's energy futures and in the spot market. That is its highest level since January 1986. OPEC conference president Rilwanu Lukman, who is Nigeria's oil minister, said Friday he expects the meeting in Vienna to be brief and calm and that OPEC's current price and production agreement may only need a slight review. Although most industry experts expect just a reaffirmation of the December agreement, oil prices continue to climb due to a desire to hedge positions in case of any surprises. Analysts expect the higher prices to continue until soon after the OPEC meeting. At that point, barring any increased tension in the Gulf or changes in OPEC's policies, prices should begin easing. "OPEC will probably not do anything it hasn't already agreed to in December because oil prices are firm," said John Hill, a vice president at Merrill Lynch Futures. OPEC agreed in December to maintain official oil prices at 18 dlrs a barrel and raise the group's production ceiling to 16.6 mln barrels per day in the third quarter and to 18.3 mln barrels in the fourth quarter. This agreement helped send prices sharply higher, rising from 15 dlrs a barrel in early December. Several OPEC members who are price hawks, including Iran, Algeria and Libya, will seek a higher official price and a reduction in output. "And if U.S. West Texas Intermediate crude continues to trade above 20 dlrs a barrel, there is a greater chance that OPEC will raise its official 18 dlrs price," said Nauman Barakat, analyst at Smith Barney, Harris Upham and Co. But most analysts expect the more moderate producers, such as Saudi Arabia, to block any changes in policy. "The meeting will be a non-event with no change in the official prices because OPEC, and in particular the Saudis, are committed to stabilizing the market," said Rosario Ilacqua, analyst with L.F. Rothschild. However, some analysts said OPEC may need to hold a meeting in September to re-evaluate market conditions. Overproduction by OPEC will become a real problem in the fourth quarter when the quota is raised to 18.3 mln barrels a day and Iraq's pipeline through Turkey brings another 500,000 barrels to the market each day, said John Lichtblau, president of Petroleum Industry Ressearch Foundation. Most expect Saudi Arabia to oppose a price increase at this meeting but many look for an increase by year-end to 20 dlrs to offset the decline in the dollar. Oil prices are denominated throughout the world in dollars, so as the currency declines, producers receive less money for their oil. "The only real production restraint in OPEC is Saudi Arabia," said Sanford Margoshes, analyst at Shearson Lehman Brothers. "In the second half of the year we expect the Saudis not to produce at their 4.1 mln barrel a day quota and therefore act as a vehicle to stablize the market and pave the way for a two dlrs a barrel price increase at the December 1987 meeting," he said. One uncertain factor is the course of the Iran-Iraq war. "The wild card is the increased tensions in the Persian Gulf," said Frank Knuettel, analyst with Prudential-Bache Securites. Oil tankers taking oil from Iraq and Kuwait have been regular targets for Iranian planes. The Reagan administration is planning to put Kuwait tankers under the protection of the U.S. flag, with naval escorts. "Extra (oil) inventories are needed during a time of crisis like this, and just general nervousness over an incident that could disrupt oil supplies drives prices up," Knuettel said.  
UNOCAL<UCL> SCRAPS FLUIDIZED BED BOILER PROJECT. Unocal Corp said it told the U.S. Treasury Department that it will not include fluidized bed combustion technology, a method for the more efficient burning of solids, at its Parachute Creek oil shale project in Colorado due to high costs. Under a 1985 agreement with the now-defunct U.S. Synthetic Fuels Corp, Unocal said it would study using the technology at the oil shale plant. In return the company would have been eligible for 500 mln dlrs in loan gaurantees and price supports from the U.S. Treasury Department, which took over the contract from the Synthetic Fuels Corp, Unocal said. Unocal said its studies showed the cost for the fluidized bed combustion facility would have exceeded 352 mln dlrs, compared with an original estimate of 260 mln dlrs. The fluidized bed facility would have provided heat and electricity for the oil shale project, Unocal said. Last year's fall in oil prices and the loss of investment tax credit under the Tax Reform Act made the project uneconomical even with government price supports and loan guarantees, Unocal said. The Parachute Creek oil shale plant produces about 4,000 to 5,000 barrels per day of crude shale oil, Unocal said.  
SANTOS SAYS IT HAS SIGNIFICANT OIL FIND. Santos Ltd <STOS.S> said it had made a significant oil discovery at its Mawson One well in the Moomba block of the Cooper Basin, South Australia. It said the well flowed oil from sands at an average rate of 1,440 barrels per day from 2,131 to 2,135 metres through a 6mm choke. Santos said the well was cased and suspended pending further evaluation. But it said the proximity of the discovery to existing production facilities at the Gidgealpa South field would allow Mawson One to be brought into production rapidly. Santos has a 60 pct stake in the block, <Delhi Petroleum Pty Ltd> has 30 pct and <South Australian Oil and Gas Corp Pty Ltd> has 10 pct.  
FAR EAST TRADERS EXPECT 20 DLR OIL IN JANUARY. OPEC's agreement to limit output to 16.6 mln barrels per day (bpd) for the rest of the year should boost spot prices and enable the group to raise its official reference price to 20 dlrs a barrel in January from the current 18 dlrs, Far East oil industry sources said. "Fundamentally, the market situation is bullish and the official price will be 20 dlrs in January," a Japanese refiner said. The sources said that in spite of over-production by OPEC members such as Iraq, the United Arab Emirates, Kuwait and Qatar, demand should exceed supply by the fourth quarter. Spot oil prices surged on Friday in late U.S. Trading as the market anticipated an OPEC agreement on second-half 1987 output. In early Tokyo trade, levels were firm at 17.30 dlrs for Mideast Dubai cargoes loading next month and 19.00 dlrs for U.K. Brent, traders said. They said they expect more foreign crudes to be sucked into the U.S. Market as the benchmark crude West Texas Intermediate (WTI) trades at around 20.30 dlrs. "With WTI at 20, 21 or 22 dlrs, U.S. Refiners will import Mideast and Far East crudes and this will strengthen those grades further," said a Japanese oil trader. Some Tokyo traders were cautious about whether thU spot market has further upward potential in the short term, having risen strongly on the OPEC news on Friday. "You could certainly argue that if New York rose on that basis, there's no reason for prices to go up again today," said one international oil trader in Tokyo. "But I think if there's any sign of a dip, it will be bought back up again pretty quickly," he added. One oil industry analyst concurred, "There is no reason to expect a weak market from now on." He said he expected OPEC to raise prices to 20 dlrs when it meets on December 9. Oil sources said spot prices are unlikely to surge strongly in the next few months due to cheating by some OPEC members and the likelihood that Saudi Arabia will act as swing producer to maintain steady prices. Iraq is currently producing around two mln barrels per day compared to its second-half quota of 1.54 mln, they said. Its export capability will rise to 2.5 mln bpd when a new pipeline through Turkey, comes onstream in or around September. Qatar is said to be achieving sales of around 350,000 bpd, against its OPEC-assigned quota of 299,000, by discounting up to 20 cents a barrel from official prices, the sources said. Iran, the United Arab Emirates and Kuwait are also cheating on the OPEC agreement with over-production and effective price discounts through counter-purchases, industry sources said. But they mostly agreed that Saudi Arabia will unofficially act as swing producer, cutting production to compensate for higher output by other members or boosting output if spot prices rise too high too fast. Saudi Arabia has a floating oil stockpile of 40 to 50 mln barrels. "Saudi Arabia wants oil price stability so the stockpile may be utilized to cool down the market if it rises too much," an oil industry analyst said.  
SAUDI OIL COMPANY GETS NEW ACTING GOVERNOR. The acting governor of Saudi Arabia's state-owned oil company, Petromin, Jamal Hassan Jawa, has retired at his own request, oil industry sources said. They said Ali Ibrahim Rubaishi, head of organisation planning in Petromin, would take over as acting governor. Jawa held the post since his predecessor, Abdul-Hadi Taher, left in a major oil industry shake up last December. The sources said Rubaishi had not been expected to hold the post permanently. The government removed Taher and Oil Minister Ahmed Zaki Yamani from their posts late last year in a move which industry sources said was aimed at coming to grips with a buyers' oil market. The two men had run the Saudi oil industry for more than 20 years. Industry sources said that despite huge resources, Saudi Arabia had been unable to mould an oil marketing strategy tuned to the competitive realities of the 1980s glut. Hisham Nazer, who replaced Yamani, successfully led an OPEC-engineered return to fixed oil prices of 18 dlrs a barrel last December. Nazer is believed to be reviewing Saudi oil operations which could lead to a thorough overhaul in the way Saudi Arabia does business, the sources said. The sources had said possible candidates for the governor's job include Prince Abdul Aziz Ibn Salman Ibn Abdul Aziz, who earlier ran a research center at Saudi Arabia's University of Petroleum and Minerals, and former Deputy Planning Minister Faisal Beshir. They also list Abdulla Bakr, President of the University of Petroleum and Minerals, economist Ali Jonahi, Ahmed Shinawi, and Zuheir Masoud, director of Jeddah Islamic Port.  
UAE OIL MINISTER OTEIBA VISITS EGYPT - AGENCY. UAE Oil Minister Mana Said al-Oteiba arrived in Alexandria last night for a visit to Egypt, the national Middle East News Agency (MENA) said. It said Oteiba, who had just attended the OPEC ministerial meeting in Vienna, would stay for several days but gave no details. Non-OPEC Egypt has pledged to restrain output to support OPEC's moves to boost oil prices. Oil Minister Abdel Hadi Kandeel last week said Egypt plans to leave its oil production of 870,000 barrels per day unchanged for the next five years. Egypt is able to produce up to one mln bpd.  
NORWAY EXTENDS 7.5 PCT OIL OUTPUT CUT - MINISTRY. Norway will extend its 7.5 pct cutback in planned North Sea oil output in support of OPEC from July 15 until the end of this year, Oil Ministry spokesman Egil Helle told Reuters. "We took a very positive view of the OPEC meeting in Vienna," he said. "The accord reached there means stability in the oil market and we shall continue making our contribution." The cuts, originally brought in from February 1, would probably be officially approved on July 10 by parliament, Helle said. The ministry had written to Norway's oil companies and would now discuss with them how best to implement the cuts. OPEC agreed this weekend in Vienna on an output ceiling of 16.6 mln barrels per day (bpd) for the rest of 1987 and retained the fixed prices that were set in its December accord based on an 18 dlr per barrel reference point. OPEC's first half 1987 output ceiling was 15.8 mln bpd, and it's December pact had provisionally set a third quarter ceiling of 16.6 mln bpd, rising to 18.3 mln in the fourth quarter. Norway, which pumps around one mln bpd from its offshore fields, previously said it would continue its output curbs from planned production for the rest of the year if OPEC remained within its December accord on output and prices. Norway's oil production rose 10 pct to an average of around 840,000 bpd in 1986. Since then it has risen to around one mln bpd, and is expected to reach about 1.5 mln bpd by 1995. The 7.5 pct cut from planned production implemented since February reduced Norway's oil output by about 80,000 bpd. Norway's Oil Minister Arne Oeien, currently in Iceland for a meeting of Nordic ministers, has made no official statement on the latest oil production cutbacks. Over the past year several other leading non-OPEC producers, including the Soviet Union, Mexico, China, Malaysia and Egypt have also pledged support for OPEC's bid to keep prices stable. Norway decided on the initial round of cuts following an OPEC agreement last December which boosted oil prices to around 18 dlrs per barrel from around 14 to 15 dlrs last December. Norway relies on oil for about 40 pct of its total export earnings and was hit hard by the collapse in the oil price during the first half of 1986. But firmer oil prices since then have brought some stability to the economy and helped narrow the foreign trade deficit. Norway's North Sea neighbour Britain has consistently refused to cooperate with OPEC output cuts saying it is up to the producing oil companies to set the levels of production.  
EXTRACTS FROM OPEC COMMUNIQUE. Following are extracts from the communique issued at the conclusion of the OPEC conference here. "The conference expressed satisfaction about the positive results of the agreement signed in December, 1986, by which OPEC re-established the system of fixed price at a level of 18 dlrs per barrel supported by OPEC production ceilings distributed into national production levels. "The conference noted that all market indicators, including spot prices in the market and netback values of all OPEC crudes, have been firming up significantly, thus consolidating the OPEC price structure as defined by the agreement." "The conference examined the supply/demand outlook for the second half of the year and decided that in order to secure continued firm prices in the market, OPEC production during the fourth quarter of 1987 will be equal to that of the third quarter, I.E. 16.6 mln barrels per day (bpd), distributed into the same national production levels as were defined by the above-mentioned agreement for that quarter." "Furthermore, the conference decided to establish a committee of five heads of delegation to monitor the price evolution in the market in relation to the OPEC official prices in order to secure price stability around the opec price structure. "Should there be any significant change in market prices, the committee would immediately call for an extraordinary meeting of the conference with a view to deciding on the necessary OPEC production levels during the second half of the year, which would secure the desired market stability." "The conference reiterated the necessity of member countries' strict adherence to the agreement signed in December 1986, both in terms of official price, and national production, levels. "For this purpose, the conference decided to establish a committee of three heads of delegation to undertake visits to member countries in order to motivate them to comply with the terms of the agreement."  "Moreover, the conference stressed the necessity of the cooperation of the oil-producing exporting countries outside OPEC as an essential prerequisite for a lasting market stability. The conference, therefore, decided to reinstate the group of five heads of delegation established by the 77th (extraordinary) meeting of the conference in April, 1986 to undertake the necessary contacts with those countries. "The conference observed the continued fall in the value of the U.S. Dollar and agreed that the matter should be studied and reported to the next meeting of the conference."  "The conference discussed the appointment of the secretary general and decided to discuss the matter again in its next ordinary meeting. "The conference extended the term of office of Fadhil al-Chalabi as deputy secretary general for a period of one year from October 7, 1987. "The next ordinary meeting of the conference will be convened in Vienna on December 9, 1987."  
KUWAIT SEES OPEC OUTPUT OVER CEILING TO END-YEAR. OPEC output for the second half of 1987, including that of Iraq, will be above the official 16.6 mln barrels per day (bpd) output ceiling agreed by OPEC Saturday, Kuwait oil minister Sheikh Ali al-Khalifa al-Sabah, said. Iraq refused to sign the pact, by which OPEC maintained its ceiling at 16.6 mln bpd for both the third and fourth quarters of 1987. In December, OPEC set a provisional fourth quarter level of 18.3 mln bpd, now cut back to the third quarter target. Ali told a news conference that including Iraq, "OPEC third quarter output will be between 17.5 and 17.7 mln bpd while fourth quarter output will be nearly 18 mln bpd" Ali did not detail what effect he thought these production levels would have on prices. Iraq has an official first half quota of 1.466 mln bpd, rising to 1.54 mln in the second half, but has refused to adhere to it and has recently been producing around two mln barrels per day, exporting it through pipelines to Saudi Arabia and Turkey. Iraq's export capacity will be further boosted when a 500,000 bpd oil pipeline via Turkey comes on stream in about September. Iraq has been insisting on a quota equal to its Gulf War enemy Iran, which has a quota of 2.255 mln bpd, rising to 2.369 mln in the second half. Ali said the position of the 400,000 bpd production from the Neutral Zone between Saudi Arabia and Kuwait, which has been supplied to Iraq as war relief crude, was fixed. "We will not discuss it. There will not be any change," he said. Ali said the conference, which began Thursday and ended Saturday evening, had been too short for all necessary problems to be adressed. "We are overdoing it in holding too short a meeting. We sweep a lot under the carpet," he said. Ali said the problem of price differentials between the prices of various OPEC crudes had not been dealt with properly at the meeting.  Ali said "The problem of differentials is a real one. I would hate to be producing today a light crude and that problem has not been dealt with properly. Light crudes are overpriced relative to heavy crudes." Asked if the issue of differentials would be raised at the next OPEC meeting to be held in Vienna on December 9, Ali said "If my crudes are affected I will raise the issue, I will not do the work of another minister." Kuwait's own crudes range from medium to heavy grades. OPEC reintroduced fixed prices on February 1, with a spread of 2.65 dlrs a barrel between its lightest and heaviest crudes.  
IRAQ REJECTS NEW OPEC OIL QUOTA. Iraq has rejected its new OPEC production quota set in Vienna for the second half of this year, the official Iraqi news agency INA reported. It quoted Oil Minister Issam Abdul-Rahim al-Chalabi, who returned Sunday, as saying "Iraq will continue to adhere to its position considering itself as not included in the agreement."  Last December, Iraq rejected its assigned first half 1987 quota of 1.466 mln bpd and demanded a share equal to the 2.255 mln bpd quota set for Iran, its enemy in the nearly seven-year-old Gulf war. The accord reached by OPEC ministers in Vienna Saturday set an output ceiling of 16.6 mln bpd for the group's 13 members from July to December, raising Iraq's share to 1.54 mln bpd and Iran's to 2.369 mln.  
CHEVRON N.SEA FIND MAY HOLD 300 MLN BBLS -ANALYSTS. A North Sea oil find announced by Chevron Corp's <CHV> Chevron Exploration North Sea Ltd may indicate a new field with recoverable crude oil reserves of 300 mln barrels, industry analysts said. Chevron said a sidetrack well on block 16/26 on the U.K. Continental shelf tested 9,000 barrels per day (bpd) of 20 API crude oil from the tertiary "Alba" sand through a three-inch surface choke. "The estimated amount of oil at the Alba field is around 320 mln barrels," Paul Spedding of stockbroker Kleinwort Grieveson and Co told Reuters. He said industry estimates put the total reserves at the field at over one billion barrels, but given the low gravity of oil, the recovery rate would be expected to be around 20-25 pct. Analysts said the results were encouraging, but the potential difficulty of operating and recovering oil in the field was shown by the fact that the first well had to be plugged and a sidetrack drilled. "The field seems to be shallow and widespread, which will require a multi-platform development in recovery, pushing costs up," Christopher Osborne of stockbroker Hoare Govett said. Most analysts said that although the low gravity of the oil found would require additional costs in recovery, the test well showed that it flows well. "Although the gravity of oil at the field seems to be low, it seems to flow quite well and around 300 mln barrels could be recovered," Carol Bell of Phillips and Drew told Reuters. However, Chevron officials declined to comment on the analysts' reserve estimates. They said that without further research and drilling in the area this summer, they would not disclose any reserve figures. Analysts said that if the field were declared commercial and developed, there would be a ready local market for the heavy crude it produced. "Most refineries are now upgraded to refine heavy oils and the price differentials between heavy and light crudes are a lot narrower today," Osborne said. Chevron operates the block on behalf of 16 companies which include British Petroleum Development Ltd, DSM Hydrocarbons (UK) Ltd, Enterprise Oil (TNS) Ltd, Marathon Int. Pet. (GB) Ltd and Phillips Petroleum Co U.K. Ltd.  
ECUADOR TO PRODUCE ABOVE OPEC QUOTA - MINISTER. Ecuador will produce crude oil in excess of its 221,000-bpd OPEC quota during the second half of this year, Energy Minister Fernando Santos Alvite told a news conference. Ecuador plans to produce 280,000 bpd in August, rising to 320,000 bpd next January, the minister said. "We will be producing more than the quota to pay off the crude and products we have been lent by Venezuela, Nigeria and Kuwait and to compensate for the crude we have been unable to produce during the past few months," he said. Earthquake damage to a pipeline sharply cut Ecuadorean production from March to May this year. Santos said the move had been explained to fellow OPEC members during last week's meeting in Vienna, when an increase in Ecuador's quota to 221,000 bpd from 210,000 was approved. "They understood our position and we believe we remain within the spirit of the (quota) agreement," he said. Immediately before the March quake Ecuadorean production was 250,000-260,000 bpd, with 144,000 bpd exported. While its production was down, Venezuela, Nigeria and Kuwait loaned Ecuador a total 12 mln barrels of crude and four mln barrels of products, Santos said.  
VENEZUELA BUDGET SEES 16.35 DLRS OIL PRICE. Venezuela's government tomorrow presents a 1988 budget proposal for 183.432 billion bolivars, based upon an oil price of 16.35 dlrs per barrel, finance minister Manuel Azpurua said. Azpurua told reporters after a cabinet meeting the new budget projects ordinary income of 149.925 billion bolivars and extraordinary income of 34.186 billion. Oil revenues are expected to produce 92.014 billion, or 61 pct of the total. The finance minister said the oil revenue projection is based on an average price of 16.35 dlrs per barrel in 1988. Venezuelan oil through the first half of 1987 has averaged 16. 20 dlrs per barrel, according to the state oil company Petroleos de Venezuela, S.A.  
VENEZUELA SEES FLAT OIL PRICE DESPITE U.S. ATTACK. World oil prices would remain stable despite the U.S. Attack against Iranian oil platforms and growing tension in the Gulf, Venezuelan Energy Minister Arturo Hernandez Grisanti said on Monday. He described the situation as "extremely tense," but said Gulf military activity would not significantly affect prices because supply and demand were roughly equal. Demand for OPEC crude in the final quarter of 1987 was 18.5 mln barrels per day (bpd) and the group's members were now pumping above 18 mln bpd, he told a news conference. Hernandez Grisanti said the supply/demand balance was precarious and prices were in danger of falling from their current average of about 18 dlrs per barrel if overproduction continued. Three or four members of the 13-nation Organisation of Petroleum Exporting Countries were "overproducing in an exaggerated manner" above their assigned quotas, he said. OPEC's overall ceiling is 16.6 mln bpd.  
MALAYSIA ADVISED TO RAISE CRUDE OIL OUTPUT IN 1988. Malaysia's national oil company, Petronas, has advised the government to raise crude oil output to 540,000 barrels a day (bpd) in 1988 from a current 500,000 bpd, a senior company official said. "We have the capacity to produce the amount," Rastam Hadi, Petronas's Vice-President for Upstream Sector said. The government will announce its decision on Friday when it unveils the country's budget. Malaysia raised output this month to current levels from 420,000 bpd after reviewing the world oil market. In May, Malaysia cut output to 420,000 bpd from 459,000 in response to a call by OPEC to boost prices.  
IRAN SAYS U.S. RAID CAUSED 500 MLN DLRS DAMAGE. U.S. Attacks on two Iranian oil platforms in the Gulf -- both of which were still blazing -- caused damage estimated at 500 mln dlrs, Tehran Radio quoted Iranian Oil Minister Gholamreza Aqazadeh as saying. The rigs, one of which was heavily shelled by four American destroyers on Monday, were still burning almost 24 hours after the attack and could cause widespread pollution in the Gulf, the minister told a news conference in Tehran. He said the Reshadat rigs, 120 miles (200 km) east of Bahrain in international waters, were in the final stages of reconstruction after an attack by Iraqi jets last year.  
INDONESIA SAYS IT WILL EXTEND OIL CONTRACTS. Indonesia told the oil industry on Tuesday it will extend contracts on producing blocks and improve the investment climate, but wants to see increased expenditure on exploration in return. President Suharto, in an opening speech to the Indonesian Petroleum Association, said Indonesia was ready to extend contracts held by foreign oil companies on producing areas. "In order to boost investment in the petroleum industry, the government of Indonesia has basically approved of extending production sharing contracts under the present laws," Suharto said. "Apart from that, the government will keep improving the investment climate in order to accelerate the development of the petroleum industry," he said. Indonesian Energy Minister Subroto told the Association he was aware that the oil industry needed to be assured that contracts on blocks expiring within the next 10 years would be renewed before they would invest in further exploration. "As we all have heard this morning, the President is fully aware of this situation," Subroto said. "The government has already made the political decision to entertain this time problem by inviting the existing producers to continue their activities in Indonesia, albeit on a selective basis." Indonesia, one of the 13 members of OPEC, must find new oil reserves if it is to remain an exporter in the next decade, oil industry sources say. Subroto said the government was also working to ease other problems, including granting easier terms for remote areas or deep water conditions. But Subroto said relations with oil companies were two-way and that they should step up expenditure on oil exploration now that the oil price had recovered. President Suharto said he wanted to see greater transfer of technology to Indonesian companies, and more help from the oil industry for the regions in which companies operated. Abdul Rachman Ramly, the President of state oil company Pertamina, has said that budgeted exploration and production expenditure for all oil companies in Indonesia was forecast to fall to 3.1 billion dlrs in calendar 1987 from 3.4 billion in 1986. Pertamina has 69 production-sharing or joint operation contracts with foreign oil companies. Subroto said speeding up necessary approvals for field operations was a government priority. There had been misunderstandings between the government and the oil industry in certain areas, such as when a field is designated commercial, and a thorough evaluation was being made. He said the government wanted to finalise contract extensions as soon as practical, and urged the industry in the meantime to maintain its exploration drive. Subroto said Indonesia needed the companies to maintain exploration efforts, even if their contract was due to expire within 10 years. "This need in itself is some sort of guarantee that we will soon have to come up with an extension agreement." Eleven major contract areas are due to come up for renewal between 1991 and 2001, industry sources said. Extension of the contracts on the blocks has involved detailed negotiations but so far no extension has been granted. Subroto told reporters afterwards that contract extensions would be selective, based on how much capital would be invested.  
NORWAY BOOSTS OIL OUTPUT BY 22 PCT IN SEPTEMBER. Norway's September oil output rose by 22.2 pct to 1.07 mln barrels per day (bpd) from 830,492 bpd in August, according to a Reuter survey of firms operating here. Operators said the sharp rise reflected higher output at several of Norway's biggest fields and resumed production at fields shut down for 27 days in August for the Ekofisk field rescue project. Industry analysts said the increase did not exceed Norway's voluntary move to curb by 7.5 pct planned growth in its oil output, a move designed to back OPEC-led efforts to stabilise oil prices by limiting supplies to world crude markets. Norway, not an OPEC member, decided in June to extend the production restraints, enforced since February 1 1987, on all its North Sea fields for the rest of the year. Oil Minister Arne Oeien said last month he expected Norway would extend into 1988 its policy of slowed production growth. The biggest increase was seen on the Ekofisk field, which pumped 168,023 bpd in September against 48,195 bpd in August, field operator Phillips Petroleum Norway Inc said. Ekofisk and the nearby Valhall and Ula fields, which use the Ekofisk pipeline, were shut down for most of August while Phillips raised Ekofisk platforms to counter seabed subsidence. BP Petroleum Development Norway Ltd, operator of the Ula field, said September output rose to 86,727 bpd after dropping to 27,237 bpd in August because of the shutdown. Valhall, operated by Amoco Norway A/S, flowed 74,694 bpd last month compared with 69,748 bpd in August, the company said. September production was also sharply higher at the Statfjord field. Norway's 84 pct share of Statfjord, which extends into the British North Sea sector, was 611,138 bpd against 552,646 bpd in August, operator Den Norske Stats Oljeselskap A/S (Statoil) said. Norway's 22.2 pct share of the Murchison field which, like Statfjord, extends into the British sector, yielded 15,388 bpd in September, a slight 920 bpd decrease from the previous month, Norwegian partners on the British-operated field said. Statoil boosted output at its Gullfaks field to 109,670 bpd in September, compared with 100,188 in August. Norsk Hydro, operator of the Oseberg field, said test output at the field from the mobile production ship Petro Jarl totalled 1,719 bpd last month, down sharply from 16,170 bpd in August. Hydro said the drop was caused by failure to bring on stream a second well, cutting September production to just two days.  
PHILLIPS <P> RAISES CRUDE OIL PRICES. Phillips Petroleum Corp said it raised the contract price it will pay for all grades of crude oil by 50 cts a barrel, effective Oct 16. The increase brings the company's postings for the West Texas Intermediate and West Texas Sour grades to 19.00 dlrs a barrel. Phillips last changed it crude oil postings on Sept 9.  
IRAN, SOVIETS TO HOLD TALKS ON OIL EXCHANGE DEAL. Iran and the Soviet Union have provisionally agreed to hold talks on a possible exchange of Iranian crude oil for finished Soviet oil products, an official spokesman said Tuesday. Gennady Gerasimov, chief of the Soviet Foreign Ministry's Information Directorate, told reporters the agreement had been reached during a visit to Moscow last week by Iran's Oil Minister Gholamreza Aqazadeh. Gerasimov said no date had been set for the talks, which would also study the possibility of Soviet technical assistance for Iran's oil industry.  
SOVIET 1988 OIL OUTPUT TARGET AT 625 MLN TONNES. The Soviet oil production target for 1988 has been set at 625 mln tonnes, a rise of eight mln tonnes over this year's planned output. Oil Minister Vasily Dinkov announced the figure on Tuesday at the Supreme Soviet, the country's nominal parliament. He said a new development strategy, fuller use of oil deposits and better housing and pay for oilmen had allowed an upsurge in the oil industry after three years of stagnation which began in late 1983. Last year the Soviet Union produced 615 mln tonnes of oil, slightly short of the target of 616.7 mln. January-September figures released at the weekend showed Soviet oil output in the first nine months of this year at 467 mln tonnes. The 1987 target is 617 million. Dinkov said the Soviet Union would develop 38 new oil deposits in the coming year. He called for speedier geolog prospecting across the country to spur the oil industry. The Supreme Soviet convened on Monday to endorse the 1988 budget and plan. The session is expected to end on Tuesday.  
US RULED OUT ATTACK ON IRANIAN SILKWORMS. U.S. military planners ruled out Iran's Silkworm missiles as a target in the retaliatory attack mounted on Monday for fear of being drawn more deeply into the Iran-Iraq war, defense and Middle East experts said. U.S. naval forces destroyed an offshore oil platform and raided another in what the administration called a "measured and appropriate response" to an Iranian Silkworm missile attack last Friday on a U.S.-flagged tanker in Kuwaiti waters. Private analysts generally agreed that going after the rig rather than an onshore economic or military target such as Silkworm launch sites reflected a careful bid by Washington to limit the political, military and diplomatic fallout both at home and in the Gulf. "It simply demonstrated the United States will take military action when they (Iran) take military action," Norman Polmar, a defense analyst and author, said. He said hitting the platforms had spared Iran the embarrassment of casualties on its own soil, possibly avoiding an escalating spiral of attack and counterattack. In addition, it minimized the risk to U.S. forces and the potential embarrassment of any losses, including aircraft that could have been shot down had they taken part in an attack. Anthony Cordesman, author of a new book on the Iran-Iraq war, said the United States apparently chose a limited target to keep alive the possibility that U.N. Secretary General Javier Perez de Cuellar might still persuade Iran to accept a Security Council call for a ceasefire. "We want the U.N. peace initiative to work if there's any chance at all," he said, adding that the action made it clear tougher steps would follow if Iran to attack Gulf shipping.  In targeting an oil rig -- albeit one said by the Pentagon to have been turned into a military command post -- Washington also sent a message that it might be willing to attack Iran's economic lifeline. Pentagon officials said the platform had been used as a base for Iranian raids against shipping in the lower Gulf. "We have chosen a military target, but we also have shown Iran that we are willing to interfere with its oil-exporting capabilities," Cordesman said. He predicted the United States would respond to any future major Iranian challenges by hitting Iran's naval base at Bandar Abbas on the Straits of Hormuz, followed by mining the approaches to Iran's oil export terminal on Kharg Island. Defense Secretary Caspar Weinberger said on Monday the United States did not seek further confrontation with Iran, "but we will be prepared to meet any escalation of military action by Iran with stronger countermeasures."  
OUTER CONTINENTAL SHELF SALE POSTPONED. Outer Continental Shelf oil and gas lease sale number 97 in the Beaufort Sea, tentatively schedualed for January 1988 has been postponed, the U.S. Department of Interior said. Alan Powers, chief of the Minerals Maanagement Service for the department, said the delay is to have more time to study the effects of drilling noise on whale migrations. Powers said the state has asked for additional noise data for the sale area off Alaska's North Slope. A new date has not been set, but it will likely be no sooner than next March, Powers said. Some 3,930 blocks encompassing about 21 mln acres are involved in the proposed sale. The area is between three and 160 miles off the northern coast of Alaska in the Artic Ocean between the Canadian border and 162 degrees west longitude.  
ECUADOR'S CEPE NAMES NEW HEAD. The state-run Ecuadorean State Oil Corporation (CEPE) has named Jaime Sanchez Valdivieso as its new general manager replacing Carlos Romo Leroux, a CEPE spokesman said. The spokesman told Reuters Sanchez is a 46-year-old civil engineer who formerly headed CEPE's administration and finances division. Romo Leroux resigned last week for "personal and family" reasons, the spokesman said.  
AMOCO RAISES MOST CRUDE POSTINGS 50 CTS TODAY, WTI TO 19.00 DLRS.  AMOCO RAISES MOST CRUDE POSTINGS 50 CTS TODAY, WTI TO 19.00 DLRS  
AMOCO <AN> RAISES CRUDE PRICES. Amoco Corp said it raised the contract price it will pay for most grades of crude oil by 50 cts a barrel, effective today. The company said the increase brings its posting for West Texas Intermediate to 19.00 dlrs a barrel. West Texas Sour, at 34 degrees API, was raised to 18.10 dlrs. The Light Louisiana Sweet grade was also increased 50 cts to 19.35 dlrs a barrel. Amoco said Wyoming Southwest Sweet, Colorado Western, and two Utah grades of oil, Black wax and yellow wax, were unchanged. The company last changed its crude oil postings on September 28.  
TEXACO <TX> UNIT RAISES CRUDE OIL PRICES. Texaco Inc said it raised the contract price it will pay for most grades of crude oil by 50 cts a barrel, effective October 16. The company said the increase brings its posting for the U.S. benchmark grade, West Texas Intermediate, to 19.00 dlrs a barrel. The West Texas Sour and Light Louisiana Sweet grades were also raised 50 cts to 18.10 and 19.35 dlrs a barrel, respectively. Texaco last changed its crude oil postings on September 15.  
ARTILLERY SHELLS SAID TO FALL ON KUWAIT BORDER. Artillery shells from an exchange of fire between Iran and Iraq fell on Kuwait's northern border on Tuesday but caused no casualties, the Kuwait News Agency KUNA said, quoting a Defense Ministry official. There were rumors in world oil markets on Tuesday that Iran had fired shells at an oil camp in northern Kuwait in retaliation for U.S. Attacks on Iranian oil platforms in the Gulf on Monday. "Several shells fell in a random manner on the northern border of the country," the official told KUNA. "It seems these shells arose from an exchange of fire between Iran and Iraq... No one was wounded and there were no losses." Diplomats said shells from the nearby Iran-Iraq warfront had in the past fallen in the northern Kuwaiti desert. A senior Kuwait Petroleum Corporation official had earlier told Reuters he was unaware of any attack against Kuwaiti oil installations.  
EX-ARCO <ARC> CHIEF SEES ENERGY CRISIS BY 1990. Dwindling global crude oil reserves and the lack of any major new discoveries in recent years will send the world into an energy crisis by 1990, the former Atlantic Richfield Co chairman Robert O. Anderson said. "It's going to come sooner than anyone thinks," Anderson told reporters after addressing a Houston business lunch. "I believe we're going to see a change in the world oil markets in two to three years because oil is becoming harder to find." Anderson, who retired from Arco last year to form Hondo Oil and Gas Co, said world oil consumption is approaching 60 mln barrels a day but a current excess capacity cushion of about 4.5 mln barrels a day will rapidly disappear. "If you looked around the world, you could not scrape up one mln barrels a day in shut-in production outside the Middle East," he said. "We're soon going to be right back where we were in 1973 and 1979." Anderson predicted that world oil prices would end 1987 at about 24 dlrs a barrel and continue a gradual climb. "There's no way prices can stay flat because there isn't enough supply," he said. "There have been no major oil discoveries for the past 15 to 20 years." Alaska's Prudhoe Bay oil reserves, the last major world discovery, has already produced about five billion barrels of oil or more than half of its estimated reserves, he said.  
VENEZUELA BACKS INCREASE IN ECUADOR OPEC QUOTA. Venezuela will back Ecuador's bid to raise its OPEC quota above 221,000 barrels per day (bpd) because it is a justifiable demand, Venezuelan Energy Minister Arturo Hernandez Grisanti said on Monday. He told reporters the country deserved a higher quota in compensation for the five months it was forced to suspend oil production when its main pipeline was destroyed by an earthquake last March. "For this five-month period, Ecuador did not exercise its right to produce 221,000 bpd," he said. "We should recognize Ecuador's right to increase its quota ... There is a basis of justice in that country's petition." He added however, the quota increase should be gradual to avoid harming the market, he added. Hernandez Grisanti said he understood Ecuador would formally submit the request for a higher quota at the next ministerial conference of the Organization of Petroleum Exporting Countries (OPEC) opening December 9 in Vienna.  
IRAN FOREIGN MINISTER TELLS CUBA OF GULF SITUATION. Iranian foreign minister ali akbar velayati, here on a two-day official visit, informed cuban foreign ministry officials on monday on the tense situation in the gulf, diplomatic sources said. They said the envoy's trip, to be followed from tuesday by a visit to nicaragua, could be linked to a possible mediation of the non-aligned movement in the seven-year-old iran-iraq war but they ruled out any prominent cuban role in it. Velayati could not be reached for comment on the U.S. Attack on an abandoned iranian oil rig on monday which tehran vowed to avenge.  
UNOCAL <UCL> RAISES CRUDE OIL POSTED PRICES. Unocal Corp said it raised its posted prices for most U.S. grades of crude oil by 50 cts a barrel, effective October 16. The move brings the price the company will pay for the U.S. benchmark grade, West Texas Intermediate, and West Texas Sour to 19 dlrs a barrel. The price was last changed September 9, Unocal said.  
ARCO <ARC> RAISES CRUDE OIL POSTINGS 50 CTS. Atlantic Richfield's Arco Oil and Gas Co said it increased contract prices for crude oil by 50 cts a barrel, effective today. Arco said the 50 cts increase brings its posted price for West Texas Intermediate, the U.S. benchmark grade, to 19.00 dlrs a barrel. The price of West Texas Sour was increased to 18.10 dlrs. Light Louisiana Sweet was raised to 19.35 dlrs. The price was last changed on September 30.  
ARCO RAISES CRUDE OIL PRICES 50 CTS BARREL, TODAY, WTI TO 19.00.  ARCO RAISES CRUDE OIL PRICES 50 CTS BARREL, TODAY, WTI TO 19.00  
U.S. MILITARY LEADER PREDICTS IRANIAN RESPONSE. William Crowe, chairman of the U.S. Joint Chiefs of Staff, predicted Iran will retaliate for the U.S. strike against its oil platform though he said Iranian options were limited. "They will be determined. They will not be easily deterred, and let me stress for you that our commitment there is not going to be risk free or casualty free." He said the most likely Iranian response would involve terrorism or the laying of mines. "They obviously will look for ways that are probably more in line with the 'silent hand' than what they have tried thus far," Crowe told an American Stock Exchange conference. He declined comment on a reporter's query whether he favored a stronger move against Iran than that ordered by the president. "We carried out the operation that was decided upon and we carried it out with enthusiasm and I think it was professionally and well done," Crowe said.  
STATOIL AWARDS VESLEFRIKK OIL FIELD CONTRACTS. Norwegian state oil company Den Norske Stats Oljeselskap (Statoil) signed contracts worth a total of 1.5 billion Norwegian crowns in connection with the development of the Veslefrikk oil field, Statoil said. Moss Rosenberg Verft of Stavanger has been awarded a contract to convert the the drilling platform West Vision to a floating production platform. The work is to be completed in the summer of 1989. Aker Verdal has been awarded a contract for the engineering, purchasing and construction of the steel jacket for the wellhead platform, also to be completed in 1989, Statoil said.  
19-OCT-1987. 19-OCT-1987 
SOUTHLAND <SLC> UNIT RAISES CRUDE OIL PRICES. Citgo Petroleum Corp, a subsidiary of Southland Corp, said it raised the contract price it will pay for all grades of crude oil by 50 cts a barrel, effective Oct 16 The increase brings Citgo's postings for the West Texas Intermediate and West Texas Sour grades to 19.00 dlrs/barrel, while Light Louisiana SWeet is now priced at 19.35 dlrs. Citgo last changed it crude oil postings on Sept 9.  
VENEZUELA SEES OIL STABILITY DESPITE GULF ATTACK. Venezuelan Energy Minister Arturo Hernandez Grisanti said he foresaw market stability in the price of crude, despite growing tension in the Gulf augmented by the U.S. military attack on an Iranian oil platform. He told a news conference the market continues to be stable despite all the military action in the Gulf.  
AMPLE SUPPLIES LIMIT U.S. STRIKE'S OIL PRICE IMPACT. Ample supplies of OPEC crude weighing on world markets helped limit and then reverse oil price gains that followed the U.S. Strike on an Iranian oil platform in the Gulf earlier on Monday, analysts said. December loading rose to 19.65 dlrs, up 45 cents before falling to around 19.05/15 later, unchanged from last Friday. "Fundamentals are awful," said Philip Lambert, analyst with stockbrokers Kleinwort Grieveson, adding that total OPEC production in the first week of October could be above 18.5 mln bpd, little changed from September levels. Peter Nicol, analyst at Chase Manhattan Bank, said OPEC production could be about 18.5-19.0 mln in October. Reuter and International Energy Agency (IEA) estimates put OPEC September production at 18.5 mln bpd. The U.S. Attack was in retaliation of last Friday's hit of a Kuwaiti oil products tanker flying the U.S. Flag, the Sea Isle City. It was struck by a missile, believed to be Iranian, in Kuwaiti waters, and was the first hit on a U.S. Flag commercial vessel in the seven year Iran/Iraq war. The U.S. Owned Liberian flag tanker Sungari was hit in the area on Thursday, also believed struck by an Iranian missile. Refiners were not significant purchasers of physical oil on Monday as a result increased Gulf tension following the U.S. Attack, analysts said. They said a closure of the Strait of Hormuz, through which around eight mln bpd passes, isnlikely because it is not in the interests of the U.S. Or Iran, they said. Any threat to oil supplies would stem from an increase in the number of tanker attacks as part of a widening of Gulf hostilities, analysts said. But they saw the U.S. Strike as a limited reply to Iranian missile attacks, with some describing it as responsible. Geoffrey Pyne, analyst at stockbrokers Phillips and Drew, said he was impressed by the sensible U.S. Response. "The U.S. Has thought carefully about what would correspond to Iranian agression. They have proved to the Iranians that any further action will be met with a like-for-like response. Today's action by the U.S. Was not escalatory," Pyne said. Kleinwort Grieveson's Lambert said the U.S. Strike was "a responsible retaliation," with the U.S. Apparently indicating to Iran that it could increase the severity of its attacksf Iran chose to raise the level of conflict. Chase Manhattan's Nicol took a different view, however. He said he was unable to see what the U.S. Had achieved as Arab states such as Kuwait and Saudi Arabia, whose interests the U.S. Is supposedly defending, will feel less secure as a result of the U.S. Attack and fear some sort of Iranian retaliation. The initial upward market move this morning reflected a strong speculative reaction to rumours of a U.S. Attack which was thought at one stage to have been against Iranian missile launchers on the Faw Peninsula, close to Kuwait, analysts said. The later downtrend followed confirmation of a U.S. Navy attack on an Iranian oil platform by the U.S. Defence Secretary Caspar Weinburger. Market operators were able to evaluate the situation in the Gulf on the basis of confirmed fact, and finding it less serious than first thought, took profits, taking prices lower, analysts and traders said.  
SECURITY COUNCIL CALLS TALKS AFTER GULF ATTACK. The U.N. Security Council was called to a private meeting on Monday for consultations following the United States attack on an Iranian oil platform. Meanwhile, a U.N. spokesman said that as far as he knew a report to the council and Secretary General Javier Perez de Cuellar on the action had not been received from the Americans. In Washington, President Reagan said the United Nations was being informed of the attack under the provision of the U.N. Charter regarding notification of actions taken under the right of self-defense. The U.N. spokesman, Francois Giuliani, said Perez de Cuellar had no comment on the attack, taken in response to Iranian action against an American-owned tanker last week, but was trying to find out "what actually happened." Calls to Iran's U.N. commission elicited no response.  
USX <X> UNIT HIKES CRUDE OIL POSTED PRICES. Marathon Petroleum Company, a subsidiary of USX Corp, said it lowered posted prices for crude oil by 50 cts with an effective date of October 16. The increase brings posted prices for West Texas Intermediate and West Texas Sour to 19.00 dlrs a barrel each. South Louisiana Sweet was increased to 19.35 dlrs a barrel. Several indepndent oil companies such as Permian Corp and Coastal Corp <CGP> said they had moved prices up effective last Friday the day Sun Co <SUN> announced a 50 cts a barrel increase to 19.00 dlrs a barrel.  
MARATHON RAISED CRUDE POSTED PRICES BY 50 CTS A BARREL EFFECTIVE OCTOBER 16..  MARATHON RAISED CRUDE POSTED PRICES BY 50 CTS A BARREL EFFECTIVE OCTOBER 16.  
COASTAL <CGP> RAISES OIL POSTED PRICES. Coastal Corp said that effective October 16 it had raised posted prices for crude oil by 50 cts a barrel. The increase brings West Texas Intermediate to 9.00 dlrs a barrel and West Texas Sour to 18.10 dlrs a barrel. Sun Co <SUN> announced that it would make a 50 cts a barrel increase late Friday bringing WTI to 19.00 dlrs a barrel and traders said that other oil companies could be expected to increase prices.  
TASS DENOUNCES U.S. ATTACK ON IRAN AS ADVENTURISM. The official Soviet news agency Tass denounced a U.S. Attack on an Iranian oil-drilling platform in the Gulf on Monday as military adventurism and said it would bring no dividends to the Reagan administration. Tass commentator Mikhail Krutikhin said the administration had embarked on an adventurist path in order to deflect attention from the scandal in which the United States sold arms to Iran and the profits were diverted to Nicaraguan rebels. "The confrontation is a fact now. What is obvious is that the latest military adventure will not bring political dividends to the American administration," Krutikhin said. Soviet leader Mikhail Gorbachev and Foreign Minister Eduard Shevardnadze abruptly left a parliamentary session earlier on Monday, sparking diplomatic speculation that they were concerned with an urgent matter of foreign affairs. Soviet officials have previously criticized the United States for sending naval forces into the Gulf, saying their presence serves to increase tension. Moscow is officially neutral in the war between Iran and Iraq. It is a major arms supplier to Iraq but has also sought broader contacts with Iran in the last year. Krutikhin said: "The United States has undertaken an act of armed aggression against Iran, the probability of which has long been spoken of by Washington officials."  
COASTAL SAID RAISED OIL POSTINGS 50 CTS A BARREL OCTOBER 16. WTI NOW 19.00 DLRS..  COASTAL SAID RAISED OIL POSTINGS 50 CTS A BARREL OCTOBER 16. WTI NOW 19.00 DLRS.  
WEINBERGER SAYS U.S. FORCES ATTACKED IRANIAN OIL PLATFORM.  WEINBERGER SAYS U.S. FORCES ATTACKED IRANIAN OIL PLATFORM  
SHIPPING SOURCES SAY UNIDENTIFIED JETS RAID IRANIAN OIL PLATFORMS IN SOUTHERN GULF.  SHIPPING SOURCES SAY UNIDENTIFIED JETS RAID IRANIAN OIL PLATFORMS IN SOUTHERN GULF  
SOUTH YEMEN PLANS OIL EXPORT PIPELINE - MEES. South Yemen is planning a major oil pipeline system to be completed in 18-months time to start exports at a initial rate of 100,000 barrels per day, (bpd) the Middle East Economic Survey (MEES) said. MEES said government approval for the export pipeline followed a visit to Aden by a high ranking delegation from the Soviet Union, which will help South Yemen construct the line The engineering studies for the pipeline are nearly finished and construction is expected to start early next year, the industry newsletter said. The pipeline will run about 170-200 kms (105-125 miles) from Shabwa oilfields to a coastal terminal at Bir 'Ali on the Gulf of Aden, MEES said. MEES said the Soviet firm Technoexport, which is developing oilfileds for South Yemen, has substantially increased its initial reserve estimates and recommended a pipeline with an eventual 500,000 bpd capacity. The discovery of commercial quaotities of oil was confirmed by Technoexport earlier this year in three structures in the Shabwa region in the Northwestern part of the country, 200 kms east of North Yemen's Alif oilfield.  
STATOIL PLACES NORTH SEA VESLEFRIKK FIELD ORDERS. Den Norske Stats Oljeselskap A/S (Statoil) <STAT.OL>, operator on Norway's North Sea Veslefrikk oil field, has placed field development contracts totalling 1.5 billion crowns with two domestic yards, the company said in a statement. Moss Rosenberg Verft, a subsidiary of Kvaerner Industrier A/S <KVIO.OL> won a 1.2 billion crown contract to convert Statoil's semisubmersible rig West Vision to a floating production platform and to build the deck for a separate, fixed well-head platform to be placed on the field, it said. Statoil said Aker Verdal, a unit of Aker Norcem A/S <AMVO.OL>, won a 300-mln crown contract to design and build the well-head platform's 10,000-tonne steel substructure, to stand in 150 metres of water next to the converted rig. Statoil said using a floating production unit rather than a fixed platform would cut construction time, enabling field partners to bring Veslefrikk on stream in late 1989 -- several months earlier than previously planned. Veslefrikk, with estimated recoverable reserves of 258 mln barrels oil and 140 billion cubic feet gas, is located 145 km west of Bergen. Statoil estimates the field's total development cost, including drilling, at 6.6 billion crowns. Planned daily output is 65,000 barrels oil and 35 mln cubic feet gas. Veslefrikk's oil will be landed via the nearby Oseberg field pipeline at the Sture crude terminal near Bergen. Its gas will be fed into the Statpipe line, which gathers gas from Norway's Statfjord, Gullfaks and Oseberg fields. Partners on the field are Statoil, the operator, with a 55 pct share, <Unocal Norge A/S> (18 pct), <Deminex (Norge) A/S> (13.5 pct), Norsk Hydro A/S <NHY.OL> (nine pct) and <Svenska Petroleum AB> (4.5 pct).  
IRAN, SOVIET UNION TO SWAP CRUDE, REFINED PRODUCTS. The Soviet Union has agreed to supply Iran with refined oil products in exchange for 100,000 barrels per day of crude, Iran's national news agency, IRNA, said. IRNA, monitored in Nicosia, quoted Oil Minister Gholamreza Aqazadeh as saying on his return to Tehran from Moscow that the agreement was part of a protocol on economic cooperation signed during his visit. The amount of crude delivered to the Soviet Union might double to 200,000 bpd later, he said. Aqazadeh said the two sides agreed to conduct feasibility studies for a pipeline to take Iranian crude from fields in southern Iran to the Black Sea through the Soviet Union. Iran is pursuing the pipeline project to protect part of its oil exports from Iraqi air attacks in the Gulf. Irna made no mention of natural gas exports to the Soviet Union, which Aqazadeh had said would be discussed before he left for Moscow. Iran lost most of its refining capacity early in the Gulf war and now imports several hundred thousand bpd of refined products. Aqazadeh said Soviet refined products would be delivered at the Caspian Sea ports of Anzali and Nowshahr, at Neka, near the Caspian, and at Jolfa in north-west Iran.  
AMATIL PROPOSES TWO-FOR-FIVE BONUS SHARE ISSUE. Amatil Ltd <AMAA.S> said it proposes to make a two-for-five bonus issue out of its revaluation reserve to shareholders registered May 26. Shareholders will be asked to approve the issue and an increase in authorised capital to 175 mln shares from 125 mln at a general meeting on May 1, it said in a statement. The new shares will rank for dividends declared after October 31. Amatil, in which B.A.T. Industries Plc <BTI.L> holds a 41 pct stake, said it does not expect to maintain its latest annual dividend rate of 29 cents a share on the enlarged capital.  
BOWATER 1986 PRETAX PROFITS RISE 15.6 MLN STG. Shr 27.7p vs 20.7p Div 6.0p vs 5.5p making 10.0p vs 9.25p Turnover 1.34 billion stg vs 1.29 billion Pretax profit 48.0 mln vs 32.4 mln Tax 14.4 mln vs 6.9 mln Company name is Bowater Industries Plc <BWTR.L> Trading profit 63.4 mln vs 45.1 mln Trading profit includes - Packaging and associated products 23.2 mln vs 14.2 mln Merchanting and services 18.4 mln vs 9.6 mln Tissue and timber products 9.0 mln vs 5.8 mln Interest debit 15.4 mln vs 12.7 mln Minority interests 7.0 mln debit vs 6.2 mln debit Extraordinary items 15.4 mln credit vs 11.9 mln debit  
BOWATER INDUSTRIES PROFIT EXCEED EXPECTATIONS. Bowater Industries Plc <BWTR.L> 1986 pretax profits of 48.0 mln stg exceeded market expectations of around 40 mln and pushed the company's shares up sharply to a high of 491p from 468p last night, dealers said. The shares later eased back to 481p. Bowater reported a 32.4 mln stg profit in 1985. The company said in a statement accompanying the results that the underlying trend showed improvement and it intended to expand further by developing existing businesses and seeking new opportunities. It added that it had appointed David Lyon, currently managing director of Redland Plc <RDLD.L> as its new chief executive. Analysts noted that Bowater's profits of 18.9 mln stg from 13.2 mln previously had been given a boost by pension benefits of 4.5 mln stg. Profit from Australia and the Far East showed the greatest percentage rise, jumping 55.0 pct to 15.5 mln from 10.0 mln, while the profit from U.K. Operations rose 30.7 pct to 24.7 mln, and Europe, 42.9 pct to 11.0 mln.  
CITIBANK NORWAY UNIT LOSES SIX MLN CROWNS IN 1986. Citibank A/S <CCI.N>, the Norwegian subsidiary of the U.S.-based bank, said it made a net loss of just over six mln crowns in 1986 -- although foreign bankers said they expect it to show 1987 profits after two lean years. Citibank's Oslo treasury head Bjoern Sejerstad told Reuters, Citibank, one of seven foreign bank subsidiaries operating in Norway, lost money because of restructuring for investment banking away from commercial banking and an economic slump in Norway following last year's plunge in oil prices. Foreign banks have been allowed to operate susbidiaries in Norway since 1985. Foreign banking analysts in Oslo said access to Norway's second-hand securities and equities markets, to be approved later this spring, and lower primary reserve requirements would make profit this year. Citibank lost 490,000 crowns in Norway in 1985, but Sejerstad said a profit was likely this year because of planned liberalisation and better economic performance, helped by a steadier oil price of around 18 dlrs a barrel. Earlier this year, Chase Manhattan Bank's <CMB.N> subsidiary decided to stop foreign exchange trading after heavy losses and focus instead on fee-based merchant banking.  
VIEILLE MONTAGNE SAYS 1986 CONDITIONS UNFAVOURABLE. A sharp fall in the dollar price of zinc and the depreciation of the U.S. Currency created unfavourable economic conditions for Vieille Montagne SA <VMNB.BR> in 1986. It said in a statement that the two factors led to a squeeze on refining margins and an 18.24 pct fall in sales and services income despite an unchanged level of activity. Vieille Montagne, which is actively pursuing a restructuring program, reported a 198 mln franc net loss, after 187 mln francs in provisions for the closure of an electrolysis plant, compared with a 250 mln franc net profit in 1985.  
VIEILLE MONTAGNE REPORTS LOSS, DIVIDEND NIL. 1986 Year Net loss after exceptional charges 198 mln francs vs profit 250 mln Exceptional provisions for closure of Viviez electrolysis Plant 187 mln francs vs exceptional gain 22 mln Sales and services 16.51 billion francs vs 20.20 billion Proposed net dividend on ordinary shares nil vs 110 francs Company's full name is Vieille Montagne SA <VMNB.BR>.  
JARDINE MATHESON SAID IT SETS TWO-FOR-FIVE BONUS ISSUE REPLACING "B" SHARES. JARDINE MATHESON SAID IT SETS TWO-FOR-FIVE BONUS ISSUE REPLACING "B" SHARES  
ISUZU PLANS NO INTERIM DIVIDEND. Isuzu Motor Ltd <ISUM.T> will pay no dividend for the first half year ending April 30, 1987, as the company is expected to mark a 12 billion yen parent company current loss in the first half due to slow exports caused by the yen's appreciation, a company spokesman said. The company has paid no dividend since the year ended October 31, 1983, when it paid five yen. It had a 4.44 billion yen current profit in the first half of 1985/86.  
JARDINE MATHESON REPLACES "B" SHARE BY BONUS ISSUE. Jardine Matheson Holdings Ltd <JARD.HK> said it will withdraw the previously announced four-for-one bonus issue of "B" shares and replace it by a two-for-five bonus issue of ordinary shares. A statement said the firm expects to pay total dividends for 1987 of not less than 40 cents a share on the expanded capital. Jardine Matheson decided to withdraw its issue because of a joint announcement earlier today by Ronald Li, chairman of the Stock Exchange of Hong Kong, and Securities Commissioner Ray Astin, that the listings of new "B" shares would be barred. The official announcement said this will include the proposal by Jardine Matheson. But the Jardine statement quoted chairman Simon Keswick as saying: "We continue to believe that the issuing of "B" shares would benefit shareholders, and regret that they will not be given the opportunity to vote on the matter at this stage." Keswick said the "B" share issue will benefit Jardine Matheson's shareholders by giving the firm flexibility to issue ordinary shares for expansion in future without diluting existing shareholders' voting rights. However, he added: "We certainly welcome (the Secretary for Monetary Affairs) David Nendick's referral of this very important matter to the Standing Committee on Company Law Reform and are hopeful that the process will lead to the development of general principles which can be embraced by all constituents of the Hong Kong market."  
ITALY'S LA FONDIARIA TO REPORT HIGHER 1986 PROFITS. Italian insurer La Fondiaria Spa <LFDI.MI> said it expects to report consolidated group profit in 1986 significantly higher than the 60 billion lire reported in 1985. The company said in a statement that parent company net profit last year will rise from the 72 billion lire reported in 1985. Consolidated group premiums totaled 1,700 billion lire in 1986 compared with 1,490 billion the previous year. Iniziativa Meta <INZI.MI>, the financial services unit of Montedison Spa <MONI.MI>, controls the largest single stake in Florence-based Fondiaria with 49.9 pct.  
HIGHER 1986 PROFIT FOR DUTCH CHEMICAL FIRM DSM. The fully state-owned Dutch chemical firm NV DSM <DSMN.AS> said its 1986 net profit rose to 412 mln guilders from 402 mln in 1985, while turnover fell to 17.7 billion guilders in 1986 from 24.1 billion in 1985. The company said 1986 dividend, which will be paid to the Dutch state in its capacity of the firm's sole shareholder, would be raised to 98 mln guilders from 70 mln guilders in 1985. In an initial comment on its 1986 results, DSM said the drop in 1986 turnover had been caused mainly by losses in the company's fertilizer division.  
CALIFORNIA BIOTECH <CBIO> SEES 1ST QTR LOSS. California Biotechnology Inc said it expects to report a loss of 1,300,000 dlrs to 1,600,000 dlrs for the first quarter due to increased investment in research and manufacturing and a scaleup of production. The company said research spending is running 50 to 60 pct above a year ago as it tries to commercialize its products as quickly as possible, and increased expenditures are expected to continue for several more quarters.  It said operating results will fluctuate quarter to quarter, depending on the timing of significant payments from commercial partners. In the first three months of 1986, the company lost 150,000 dlrs.  The company changed its fiscal year in 1986 to a calendar year from a year ending November 30.  For the first quarter of last year, ended February 28, California Biotech earned 114,000 dlrs.  
PALL CORP <PLL> SETS QUARTERLY DIVIDEND. Qtly div 8-1/2 cts vs 8-1/2 cts prior Pay May One Record April 20  
COMPUTER RESEARCH INC <CORE> 2ND QTR FEB 28 NET. Shr 14 cts vs nine cts Net 217,572 vs 153,454 Revs 2,530,273 vs 2,558,924 1st half Shr 19 cts vs 11 cts Net 299,838 vs 174,739 Revs 4,865,249 vs 4,495,021  
RUBBERMAID INC 1ST QTR SHR 28 CTS VS 22 CTS. RUBBERMAID INC 1ST QTR SHR 28 CTS VS 22 CTS  
ELECTRO RENT CORP <ELRC> 3RD QTR FEB 28 NET. Shr 20 cts vs 32 cts Net 1,358,000 vs 2,476,000 Revs 27.1 mln vs 26.2 mln Avg shrs 6,852,000 vs 7,764,000 Nine mths Shr 68 cts vs 1.05 dlrs Net 4,957,000 vs 8,129,000 Revs 82.6 mln vs 78.8 mln Avg shrs 7,316,000 vs 7,754,000  
RUBBERMAID INC <RBD> 1ST QTR NET. Shr 28 cts vs 22 cts Net 20.6 mln vs 16.1 mln Sales 238.0 mln vs 188.8 mln  
WTC INTERNATIONAL INC <WAF> 4TH QTR FEB 28 NET. Shr profit 13 cts vs loss 33 cts Net profit 1,149,000 vs loss 2,833,000 Rev 51.8 mln vs 47.8 mln Year Shr profit 24 cts vs loss 18 cts Net profit 2,050,000 vs loss 1,551,000 Rev 200.6 mln vs 180.1 mln  
MEAD CORP 1ST QTR OPER SHR 1.09 DLRS VS 67 CTS. MEAD CORP 1ST QTR OPER SHR 1.09 DLRS VS 67 CTS  
RUBBERMAID <RBD> SEES CONTINUED IMPROVEMENT. Rubbermaid Inc said its incoming order rates continue strong and it expects to continue recording favorable year to year comparisons in each remaining quarter of 1987. Today the company reported first quarter earnings of 20.6 mln dlrs on sales of 238.0 mln dlrs, up from earnings of 16.1 mln dlrs on sales of 188.8 mln dlrs.  
CAYUGA SAVINGS BANK <CAYB> 1ST QTR NET. Shr 55 cts vs 41 cts Net 494,000 vs 204,000 Avg shrs 896,655 vs 494,155  
JOHNSTOWN SAVINGS BANK FSB <JSBK> 1ST QTR NET. Shr 33 cts vs not given Net 642,484 vs 362,883 NOTE: Company went public in October 1986. Net includes pretax loan loss provisions of 90,000 dlrs vs 56,250 dlrs and gain on sale of securities of 113,432 dlrs vs 88,946 dlrs.  
HOME SAVINGS AND LOAN ASSOCIATION INC <HSLD>. 2nd qtr March 31 Shr 57 cts vs not given Net 790,874 vs 628,020 1st half Shr 1.15 dlrs vs not given Net 1,588,985 vs 1,073,163 NOTE: Company recently went public.  
GEODYNAMICS CORP <GDYN> 3RD QTR FEB 27 NET. Shr 21 cts vs 20 cts Net 596,000 vs 594,000 Revs 8,693,000 vs 8,164,000 Nine mths Shr 61 cts vs 58 cts Net 1,784,000 vs 1,653,000 Revs 26.3 mln vs 23.0 mln  
COMPAQ <CPQ> EXPECTS HIGHER FIRST QUARTER NET. Compaq Computer Corp said it expects sales and earnings for the first quarter of 1987 to be higher than analysts expectations due to strong demand for its products. Rod Canion, president and chief executive officer of Compaq, said he expects sales of over 200 mln dlrs for the period ending March 31, above analysts' estimates of 165-185 mln dlrs. He added that earnings per share would exceed analysts estimates of as high as 42 cts a share. Compaq reported earnings of 8.3 mln dlrs, or 30 cts a share, and sales of 144 mln dlrs for the first quarter 1986. The company said demand for its DESKPRO 386, PORTABLE III and the new COMPAQ DESKPRO 286 will contribute to the sales increase. "The initial demand for the recently introduced COMPAQ PORTABLE III and the new models of the COMPAQ DESKPRO 286 exceeds that of any other Compaq personal computers," Canion said. "We saw continued demand for our personal computers across the quarter, with March (1987) being a particularly strong month.  
CXR TELCOM CORP <CXRL> 3RD QTR MARCH 31 NET. Shr nil vs nil Net 215,000 vs 16,000 Revs 2,800,000 vs 1,100,000 Nine mths Shr one ct vs nil Net 620,000 vs 231,000 Revs 8,100,000 vs 2,100,000  
HELEN OF TROY CORP <HELE> 4TH QTR FEB 28 NET. Shr 17 cts vs 13 cts Net 598,000 vs 392,000 Sales 10.2 mln vs 7,474,000 Avg shrs 3,432,000 vs 3,045,000 Year Oper shr profit 1.05 dlrs vs loss 47 cts Oper net profit 3,498,000 vs loss 1,427,000 Sales 52.2 mln vs 40.8 mln Avg shrs 3,320,000 vs 3,060,000 NOTE: Latest year net excludes 782,000 dlr tax credit.  
BANKERS TRUST <BT> PUTS BRAZIL ON NON-ACCRUAL. Bankers Trust New York Corp said it has placed its approximately 540 mln dlrs of medium- and long-term loans to Brazil on non-accrual status and that first-quarter net income will be reduced by about seven mln dlrs as a result. Brazil suspended interest payments on its 68 billion dlrs of medium- and long-term debt on February 22. U.S. banking regulations do not require banks to stop accruing interest on loans until payments are 90 days overdue, but Bankers Trust said it acted now because of "the high potential of a continued suspension that would result in reaching the 90-day limit in the second quarter of 1987." Assuming no cash payments at current interest rates are received for the rest of 1987, Bankers Trust estimated that full-year net income would be reduced by about 30 mln dlrs. Bankers Trust said it assumes that debt negotiations between Brazil and its commercial bank lenders will lead to the resumption of interest payments. The negotiations resume in New York on Friday when central bank governor Francisco Gros is expected to ask banks for a 90-day rollover of some 9.5 billion dlrs of term debt that matures on April 15.  
<FIRST MERCANTILE CURRENCY FUND INC> 1ST QTR NET. Shr profit 63 cts vs 22 cts Net 775,868 vs 276,446 Revs 2,255,742 vs 706,130  
MEAD <MEA> EXPECTS IMPROVED EARNINGS THIS YEAR. Mead Corp said the outlook for its major paper markets looks strong for the second quarter and augurs well for its earnings in 1987. "The generally strong outlook bodes well for significantly improved earnings this year," Burnell Roberts, chairman and chief executive officer said. Earlier, the company reported first quarter earnings of 34.2 mln dlrs, or 1.09 dlrs a share, versus 20.3 mln dlrs, or 65 cts a share, in last year's first quarter. In 1986 the company reported earnings from continuing operations of 109.3 mln dlrs, or 3.50 dlrs a share. Mead said its first quarter benefitted from stronger market conditions and improved operations. "The combination of capital improvement programs and more employee involvement has been paying off throughout our paper operations," Roberts said. He added that Mead's pulp and paperboard businesses are operating well as prices have improved and strong demand has placed most products in a sold-out position through the middle of the year. Mead said sales of its unbleached coated paperboard was particularly strong, up 13 pct versus the first quarter 1986.  
AMERTEK INC <ATEKF> 1ST QTR NET. Shr profit 20 cts vs loss three cts Net profit 849,299 vs loss 82,512 Revs 7,929,138 vs 3,849,224  
ALEX BROWN INC <ABSB> 1ST QTR MARCH 27 NET. Shr primary 78 cts vs 68 cts Shr diluted 75 cts vs 68 cts Qtrly div six cts vs five cts Net 7,929,000 vs 6,569,000 Revs 78.7 mln vs 61.9 mln NOTE: Pay date for the qtrly div is April 28 for shareholders of record April 20.  
TOWN AND COUNTRY JEWELRY MANUFACTURING <TCJC>. 4thh qtr Feb 28 Shr 46 cts vs 22 cts Net 2,139,034 vs 854,182 Sales 30.8 mln vs 20.6 mln Avg shrs 5,280,854 vs 4,559,646 Year Shr 1.34 dlrs vs 1.15 dlrs Net 5,935,117 vs 4,156,171 Sales 107.2 mln vs 71.6 mln Avg shrs 5,281,387 vs 3,616,183 NOTE: Town and Country Jewelry Manufacturing Corp.  
<MARK'S WORK WEARHOUSE LTD> YEAR JAN 31 NET. Shr 10 cts vs 32 cts Net 975,000 vs 3,145,000 Sales 159.1 mln vs 147.3 mln  
ENTOURAGE <ENTG> HAS FIRST QUARTER LOSS. Entourage International Inc said it had a first quarter loss of 104,357 dlrs, after incurring 70,000 dlrs in costs for an internal audit, a report for shareholders and proxy soliciation and 24,000 dlrs in startup expenses for opening London offices. The company went public during 1986. Entourage also said it has started marketing a solid perfume packaged in a lipstick tube called "Amadeus," retailing at 15 dlrs. The company also said it has acquired North Country Media Group, a video productions company.  
<MR. JAX FASHIONS INC> YEAR FEB 28 NET. Shr 58 cts vs 29 cts Net 3,141,000 vs 1,440,000 Sales 24.7 mln vs 13.0 mln  
F.W. WOOLWORTH CO SAYS IT HIKES DIVIDEND TO 33 CTS A SHARE FROM 28 CTS.  F.W. WOOLWORTH CO SAYS IT HIKES DIVIDEND TO 33 CTS A SHARE FROM 28 CTS  
F.W. WOOLWORTH CO <Z> HIKES DIVIDEND. Qtly div 33 cts vs 28 cts prior Pay June 1 Record May 1  
J.P. MORGAN AND CO INC 1ST QTR SHR 1.22 DLRS VS 1.28 DLRS.  J.P. MORGAN AND CO INC 1ST QTR SHR 1.22 DLRS VS 1.28 DLRS  
VOLKSWAGEN DIVIDEND DECISION DUE TOMORROW. Volkswagen AG <VOWG.F>, VW, is due to make a formal announcement about its 1986 dividend tomorrow after saying the 1985 level of 10 marks per ordinary share would be held, despite massive losses because of a suspected foreign currency fraud. A spokesman said VW's supervisory board will meet tomorrow to discuss the payout.  A statement will be made afterwards. VW has also said disclosed profits for 1986 will reach their 1985 level, despite provisions of a possible 480 mln marks linked to the currency affair. The figure is virtually the same as the 477 mln mark 1985 parent company net profit. When VW first confirmed the currency scandal on March 10 it said the management board would propose an unchanged 10-mark dividend to the supervisory board. A dividend of 11 marks would be proposed for the company's new preference shares. Share analysts said they saw supervisory board approval of the management board proposal as virtually a formality. "Anything else would be more than a surprise," one said. Company sources said VW would have to dig into reserves to maintain the disclosed profit. Parent company reserves stood at around three billion marks at end-1985.  
CITYTRUST BANCORP INC <CITR> 1ST QTR NET. Shr 1.40 dlrs vs 1.16 dlrs Net 5,776,000 vs 4,429,000 Avg shrs 4,132,828 vs 3,834,117  
J.P. MORGAN AND CO INC <JPM> 1ST QTR NET. shr 1.22 dlrs vs 1.28 dlrs net 226.4 mln vs 233.9 mln assets 80.45 billion vs 70.23 billion loans 35.16 billion vs 35.99 billion deposits 45.22 billion vs 39.68 billion return on assets 1.14 pct vs 1.35 pct return on common equity 18.20 pct vs 22.08 pct NOTE: 1987 qtr net was reduced by 20 mln dlrs because 1.3 billion dlrs of loans to Brazil were placed on non-accrual. loan loss provision 35 mln dlrs vs 70 mln year earlier.  
FIRSTBANC CORP OF OHIO <FBOH> 1ST QTR NET. Shr 74 cts vs 67 cts Net 8,067,000 vs 7,317,000  
MAYFAIR SUPER MARKETS INC <MYFRA> 2ND QTR NET. Qtr ends Feb 28 Shr Class A 61 cts vs 48 cts Shr Class B 59 cts vs 46 cts Net 2,358,000 vs 1,876,000 Revs 122,508,000 vs 105,871,000 Six mths Shr Class A 1.15 dlrs vs 86 cts Shr Class B 1.13 dlrs vs 84 cts Net 4,485,000 vs 3,378,000 Revs 242,453,000 vs 210,117,000 NOTE: qtr and six mths prior figures reflect two-for-one stock split in August 1986.  
HANOVER INSURANCE <HINS> GET SPLIT APPROVAL. Hanover Insurance Co said its stockholders approved a two-for-one stock split. As a result of the split, Hanover said it increases the number of authorized shares of capital stock from 10.4 mln, having a par value of one dlr, to 20.9 mln, also having a par value of one dlr. The stock split is payable April 30 to stockholders of record April 10, Hanover said.  
UNIVERSAL MEDICAL <UMBIZ> DISTRIBUTION SET. Qtly distribution 7-1/2 cts vs 7-1/2 cts prior (excluding 2-1/2 cts special) Pay April 30 Record April 22 NOTE: Full name is Universal Medical Buildings L.P.  
8-APR-1987 11:06:39.06. 8-APR-1987 11:06:39.06 
WEIS MARKETS INC <WMK> 1ST QTR MARCH 28 NET. Shr 59 cts vs 51 cts Net 18.0 mln vs 15.6 mln Revs 278.6 mln vs 272.2 mln  
CONTINENTAL BANK INITIAL DISTRIBUTION APPROVED. Continental Bank of Canada said shareholders approved a capital reorganization to allow an initial payout by the end of May to common shareholders from last year's 200 mln Canadian dlr sale of most Continental assets to <Lloyds Bank PLC>'s Lloyds Bank Canada. The bank said the initial distribution would take the form of a stock dividend of cumulative redeemable retractable class A series two preferred shares entitling holders to monthly floating rate dividends at 72 pct of prime and to 12.75 dlrs a share on retraction. Continental said the initial payout was subject to Canadian government approval. The bank reiterated that total distributions to common shareholders would range from 16.50 dlrs a share to 17.25 dlrs including the initial stock dividend and a final distribution in late 1988 or early 1989. The payout of existing preferred shareholders will be completed just before next month's initial distribution to common shareholders, Continental added.  
ATLAS CONSOLIDATED MINING AND DEVELOPMENT <ACMB>. 4th qtr Shr loss 17 cts vs loss 22 cts Net loss 14.5 mln vs loss 18.0 mln Revs 27.3 mln vs 23.7 mln Year Shr 58 cts vs 1.01 dlrs Net loss 48.3 mln vs loss 84.2 mln Revs 111.7 mln vs 141.9 mln NOTE: Atlas Consolidated Mining and Development Corp of Manila. Translated from Philippine pesos at 20.3489 pesos to dollar vs 18.5571 in quarter and 20.2315 vs 18.2743 in year.  
DATA TRANSLATION INC <DATX> 1ST QTR FEB 28 NET. Shr 18 cts vs 13 cts Net 575,000 vs 379,000 Sales 6,625,000 vs 4,537,000 Avg shrs 3,173,000 vs 2,977,000  
FIDATA CORP <FID> 4TH QTR LOSS. Shr loss two cts vs profit 38 cts Net loss 90,000 vs profit 1,685,000 Revs 1,826,000 vs 29.3 mln Year Shr profit 3.37 dlrs vs profit 46 cts Net profit 15.0 mln vs profit 2,047,000 Revs 26.2 mln vs 123.6 mln NOTE: Net includes pretax securities sale gain 10,000 dlrs vs loss 1,000 dlrs in quarter and gain 486,000 dlrs vs loss 112,000 dlrs in year. Net includes pretax gains on sale of businesses of nil vs 4,656,000 dlrs in quarter and 26.0 mln dlrs vs 4,656,000 dlrs in year. Net includes pretax losses on disposition of product line of nil vs 3,150,000 dlrs in quarter and 3,300,000 dlrs vs 3,150,000 dlrs in year. Quarter net includes tax credits of 102,000 dlrs vs 736,000 dlrs. Net includes reversal of tax loss carryforwards of 259,000 dlrs vs 264,000 dlrs in quarter and tax loss carryforwards of 8,635,000 dlrs vs 579,000 dlrs in year.  
MARBLE FINANCIAL CORP <MRBL> 1ST QTR NET. Oper shr 26 cts vs not given Oper net 866,000 vs 480,000 NOTE: 1987 net excludes 157,000 dlr gain from termination of pension plan. Company went public in August 1986.  
RAYTHEON CO 1ST QTR SHR 1.37 DLRS VS 1.19 DLRS.  RAYTHEON CO 1ST QTR SHR 1.37 DLRS VS 1.19 DLRS  
FLEET FINANCIAL GROUP 1ST QTR SHR 73 CTS VS 60 CTS.  FLEET FINANCIAL GROUP 1ST QTR SHR 73 CTS VS 60 CTS  
DIEBOLD INC <DBD> DECLARES DIVIDEND. Qtly div 30 cts vs 30 cts prior Pay June 8 Record May 18  
INDEPENDENT BANK CORP <IBCP> REGULAR DIVIDEND. Qtly div 10 cts vs 10 cts previously Pay April 20 Record April 10  
RAYTHEON CO <RTN> 1ST QTR NET. Shr 1.37 dlrs vs 1.19 dlrs Net 101.8 mln vs 92.3 mln Revs 1.750 billion vs 1.725 billion Avg shrs 74.2 mln vs 77.8 mln  
WALTHAM SAVINGS BANK <WLBK> INITIAL DIVIDEND. Qtly div eight cts vs N.A. Payable May 11 Record April 24  
FLEET FINANCIAL GROUP <FLT> 1ST QTR NET. Shr primary 73 cts vs 60 cts Shr diluted 70 cts vs 58 cts Net 38,528,000 vs 31,680,000 Avg shares 52,087,634 vs 51,294,652 NOTE: Qtr net interest income is 130.7 mln dlrs vs 114.8 mln dlrs. Earnings per share reflects two-for-one common stock split on March 15.  
RAYTHEON <RTN> NET RISES ON OPERATIONS. Raytheon said a 10 pct rise in its first quarter net to 101.8 mln dlrs reflected improved operations and a lower effective tax rate. The company said revenue gains in electronics, major appliances and other lines were offset by decreases in energy services and aircraft products. Revenues in the quarter rose 1.4 pct to 1.75 billion dlrs, it said. The company said backlog stood at 7.520 billion dlrs, down from 7.912 billion dlrs a year earlier. It said a five year 3.55 billion dlr U.S. defense contract was awarded shortly after the close of the first quarter.  
GENERAL INSTRUMENT CORP <GRL> 4TH QTR LOSS. Ended Feb 28 Shr loss 2.80 dlrs vs profit 17 cts Net loss 90.5 mln vs profit 5,271,000 Revs 240.9 mln vs 159.4 mln Year Shr loss 2.49 dlrs vs loss 2.07 dlrs Net loss 80.4 mln vs loss 66.5 mln Revs 787.9 mln vs 612.4 mln NOTE: Includes loss of 89.6 mln dlrs vs loss 14.5 mln dlrs in year and loss of 91.6 mln dlrs in current qtr from discontinued operations. 1986 qtr includes pretax gain of five mln dlrs from settlement of litigation and tax gain of 5.1 mln dlrs from change in estimated effective tax rate.  
J.P. MORGAN <JPM> NET HURT BY BRAZIL, TRADING. J.P. Morgan and Co Inc said its first-quarter earnings fell by 3.2 pct, largely reflecting its previously announced decision to place on non-accrual status its 1.3 billion dlrs of medium- and long-term loans to Brazil. That decision, spurred by Brazil's suspension of interest payments on February 20, reduced the quarter's net income by 20 mln dlrs to 226.4 mln dlrs, compared with 233.9 mln in the first three months of 1986. Morgan also reported a loss of 1.8 mln dlrs from securities underwriting and trading, in contrast to a gain of 45.4 mln dlrs in the year-earlier period. In the fourth quarter of 1986, Morgan posted other trading losses of 5.5 mln dlrs because of setbacks in the trading and underwriting of Euromarket securities. Conditions in some sectors of the Euromarket remained difficult last quarter, with floating rate notes suffering heavy price falls, but a spokeswoman was unable to say whether Morgan's trading losses were restricted to the Euromarket. On the positive side, Morgan reduced its provision for loan losses to 35 mln dlrs from 70 mln a year earlier. Foreign exchange trading income rose to 82 mln dlrs from 72.6 mln and trust income increased to 95.9 mln dlrs from 75.9 mln. Morgan said other operating income, mainly fees and commissions, rose to 102.2 mln dlrs from 88.4 mln, but net investment securities gains dropped to 43.1 mln from 58.1 mln. Net interest earnings were 490.4 mln dlrs in the first quarter, down from 499.4 mln a year earlier, and net yield fell to 2.79 pct from 3.20 pct. If Brazil had not been placed on non-accrual, which means that interest can be recorded as income only when payments are actually received, net interest earnings would have been 525.9 mln dlrs and net yield 2.99 pct. If Brazil does not resume payments, 1987 net would be cut by 72 mln dlrs, Morgan added. After the provision for loan losses, Morgan's allowance for credit losses at the end of March totaled 953 mln dlrs compared with 910 mln at end-1986 and 815 mln a year earlier. It reported net recoveries of six mln dlrs after charge-offs of eight mln, compared with net charge-offs of 49 mln dlrs after recoveries of three mln a year earlier. Excluding Brazil, non-accruing loans at quarter's end were 583 mln dlrs, down from 633 mln at end-1986 and 684 mln a year earlier. Non-interest expenses rose to 371.1 mln dlrs from 303.5 mln dlrs, with more than half the increase related to personnel costs, Morgan said.  
ATLAS CONSOLIDATED MINING <ACMB> 4TH QTR. Shr loss 17.3 cts vs 21.5 cts Net loss 14.5 mln vs loss 18.0 mln Revs 27.3 mln vs 23.7 mln Year Shr loss 58 cts vs loss 1.01 dlrs Net loss 48.3 mln vs loss 84.2 mln Revs 111.7 mln vs 141.9 mln  
FLEET <FLT> SHAREHOLDERS APPROVE SHARE INCREASE. Fleet Financial Group said its shareholders approved an increase in shares of the company's authorized common stock to 100,000,000 shares from 75,000,000 shares currently. The company said shareholders approved the move at the annual meeting in Providence today when the company reported that its first quarter earnings rose to 38.5 mln dlrs, or 73 cts a share, from 31.7 mln dlrs, or 60 cts a share, in the first quarter 1986. J. Terence Murray, chairman and president of Fleet Financial, said, "Fleet's mortgage banking activities in particular continued to produce signficant income increases (in the first quarter)." Murray said Fleet's mortgage servicing portfolio reached 22.1 billion dlrs by March 31, including 1.8 billion dlrs purchased in March.  
ROWE FURNITURE CORP <ROWE> 1ST QTR FEB 28. Shr 42 cts vs 35 cts Net 854,000 vs 839,000 Revs 23.2 mln vs 21.9 mln  
REUTERS CHAIRMAN URGES FREER INFORMATION FLOWS. Exchanges and telecommunications authorities should abolish their restrictions on full and free dissemination of information to the investment and banking communities, Reuters Holdings Plc <RTRS.L> chairman Sir Christopher Hogg said. In the 1986 annual repoprt, he said lengthy negotiations had brought agreement with the Tokyo and London Stock Exchanges for fuller, but still not complete, access to market data through Reuter services. "Many other markets maintain restrictions," he added. Hogg said members of some markets appear to believe that information restrictions protected their interests. In other cases, exchanges seem to be limiting the distribution of data in order to provide competitive advantage to their own commercial information businesses. He also noted that despite increasing liberalisation in the telecommunications field, some countries continue to protect their state monopolies at the expense of other economic sectors. "Reuter dealing services remain excluded from such countries. As a result, banking communities serving entire economies are put at a competitive disadvantage," he added. Reuters increased its 1986 pre-tax profit by 39 pct from the previous year to 130.1 mln stg on a 43 pct rise in revenues to 620.9 mln stg. Earnings per ordinary share were up 47 pct to 19.4p. The annual shareholder meeting will be held in London on April 29.  
RHODES INC <RHD> DECLARES DIVIDEND. Qtly div nine cts vs nine cts prior Pay July 15 Record June 15  
CELLTRONICS <CELT> DECLARES ONE-FOR-10 SPLIT. Celltronics Inc said its directors declared a one-for-10 reverse stock split of its common stock. It said the split will be payable April 17 to shareholders of record April 16.  
MONTEDISON'S AGRIMONT UNIT 1986 EARNINGS. <Montedison SPA> of Italy said net consolidated profit for its Agrimont Group, formed in June 1986, totalled 1.5 billion lire in 1986. Agrimont SPA, the holding company for Montedison's Agro-Industrial businesses, had sales of 810 billion lire and a net profit of about 1.1 billion lire, after amortization costs of 35 billion lire and a 13 billion lire reduction in the value of inventory due to falling market prices, Montedison said. Agrimont, still wholly owned by Montedison, is taking steps to be traded on the Milan exchange, the company said. The company said that 1986 was characterized by an unstable fertlizer market due to the weak dollar and the decline of international prices for products sold in Europe and the U.S where Agrimont operates through its Conserv division. In pesticides and in animal health care products Agrimont maintained its previous level of revenues and market share in 1986, Montedison said. Montedison said it named Ettore dell'Isola to the newly created position of president of Agrimont. Montedison also said it named Renato Picco, managing director of <Eridania SPA> and Gianfranco Ceroni, managing director of <Italiana Olii e Sifi>, both of whom are members of the the Ferruzzi Group's management board, to Argimont's board of directors. Ferruzzi owns about 40 pct of Montedison, the company said.  
SOUND WAREHOUSE INC <SWHI> 3RD QTR FEB 28 NET. Shr 26 cts vs 52 cts Net 1,386,000 vs 2,773,000 Revs 47.7 mln vs 38.5 mln Nine mths Shr 52 cts vs 97 cts Net 2,765,000 vs 5,419,000 Revs 116.9 mln vs 97 mln  
TELECRAFTER CORP <SWHI> 2ND QTR FEB 28 NET. Shr profit 12 cts vs loss 14 cts Net profit 183,000 vs loss 234,000 Revs 2.4 mln vs 1.5 mln Six months Shr profit 22 cts vs loss 22 cts Net profit 345,000 vs loss 358,000 Revs 5.2 mln vs 2.9 mln NOTE:1987 2nd qtr and six months include gains of 78,000 dlrs and 154,000 dlrs for tax loss carryforward.  
COLT INDUSTRIES INC <COT> 1ST QTR NET. Shr 28 cts vs 16 cts Net 9,387,000 vs 25,617,000 Revs 410.1 mln vs 393.5 mln Avg shrs 35.4 mln vs 164.7 mln NOTE: 1987 net reflects interest expense on debt incurred to finance recapitalization in Oct. 1986. Prior year earnings restated to reflect recapitalization plan.  
MAYFAIR SUPER MARKETS INC <MYFRA> 2ND QTR FEB 28. Shr 59 cts vs 46 cts Net 2.4 mln vs 1.9 mln Revs 122.5 mln vs 105.9 mln Six months Shr 1.13 dlrs vs 84 cts Net 4.5 mln vs 3.4 mln Revs 242.5 mln vs 210.1 mln NOTE: 1986 share adjusted for 2-for-1 stock split.  
<BATON BROADCASTING INC> SIX MTHS FEB 28 NET. Shr 33 cts vs 31 cts Net 9,219,017 vs 8,515,539 Revs 112.0 mln vs 95.4 mln  
UNITED CABLE TELEVISION CORP <UCT> 3RD QTR NET. Shr loss 24 cts vs profit seven cts Net loss 5,952,000 vs profit 2,078,000 Revs 55.9 mln vs 50.6 mln Avg shrs 25.2 mln vs 24.7 mln Nine mths Shr loss 11 cts vs profit 24 cts Net loss 2,673,000 vs profit 6,800,000 Revs 162.6 mln vs 143.9 mln Avg shrs 25.0 mln vs 24.4 mln NOTE: Current year net both periods includes pretax charge seven mln dlrs from increase in reserve for investments in broadcast television entities and tax credits of 1,002,000 dlrs in quarter and 520,000 dlrs in nine mths.  
STERIVET LABORATORIES LTD <STVTF> 1ST QTR NET. Shr profit 10 cts vs loss 17 cts Net profit 206,000 vs loss 281,000 Revs 1,022,00 vs 344,000  
STERIVET LABORATORIES LTD <STVTF> YEAR LOSS. Shr loss 48 cts vs loss 19 cts Net loss 746,000 vs loss 342,000 Revs 3,213,000 vs 2,925,000  
MELLON PARTICIPATING MORTGAGE TRUST <MPMTS> DIV. Qtly div 25 cts vs 25 cts prior Payable May 6 Record April 24  
PRESTON CORP <PTRK> SEES FIRST QUARTER LOSS. Preston corp said it expects to report a loss of about 300,000 dlrs or five cts per share for the first quarter, compared with a profit of 1,081,000 dlrs or 19 cts per share a year before. The trucking company attributed the loss to the continued rate of discounted in its primary markets, flat revenues and increased costs, including uninsured claims expense resulting from adverse weather conditions during the last three months. It said results outside the Northeast were strong, and it expects to show improved results for the rest of the year.  
DOW JONES AND CO INC FIRST QUARTER SHR 69 CTS VS 64 CTS.  DOW JONES AND CO INC FIRST QUARTER SHR 69 CTS VS 64 CTS  
<HAYES-DANA INC> 1ST QTR NET. Shr 30 cts vs 28 cts Net 5,000,000 vs 4,600,000 Revs 125.2 mln vs 123.9 mln Note: 52 pct-owned by Dana Corp <DCN>.  
ELECTRO RENT CORP <ELRC> 3RD QTR FEB 28 NET. Shr 20 cts vs 32 cts Net 1,358,000 vs 2,476,000 Revs 27.1 mln vs 26.2 mln Nine Mths Shr 68 cts vs 1.05 dlrs Net 4,957,000 vs 8,129,000 Revs 82.6 mln vs 78.8 mln  
WALGREEN CO 2ND QTR SHR 62 CTS VS 58 CTS.  WALGREEN CO 2ND QTR SHR 62 CTS VS 58 CTS  
JUDY'S INC <JUDY> 4TH QTR JAN 31 LOSS. Shr loss two cts vs profit nine cts Net loss 74,000 vs profit 418,000 Sales 18.2 mln vs 17.5 mln Year Shr profit nine cts vs profit 26 cts Net profit 426,000 vs profit 1,170,000 Sales 58.7 mln vs 56.7 mln  
ORANGE-CO INC <OJ> 2ND QTR FEB 28 NET. Shr profit 2.26 dlrs vs loss 81 cts Net profit 9,785,000 vs loss 3,422,000 Revs 26.0 mln vs 18.9 mln Avg shrs 4,316,000 vs 4,207,000 1st half Shr profit 2.75 dlrs vs loss 1.07 dlrs Net profit 11.9 mln vs loss 4,486,000 Revs 39.0 mln vs 37.2 mln Avg shrs 4,318,000 vs 4,181,000 NOTE: Current year net both periods includes gain 9,500,000 dlrs from sale of Orange-Co of Florida subsidiary to American Agrnomics Corp <AGR>. Net includes pretax real estate disposition loss 920,000 dlrs vs gain 52,000 dlrs in quarter and loss 863,000 dlrs vs gain 117,000 dlrs in half. Prior year net includes tax credits of 2,132,000 dlrs in quarter and 3,039,000 dlres in half. Current half net includes 2,051,000 dlr pretax gain 2,051,000 dlrs from change in accounting.  
DOW JONES AND CO INC <DJ> 1ST QTR NET. Shr 69 cts vs 64 cts Net 66,719,000 vs 61,773,000 Rev 285.6 mln vs 259.7 mln NOTE: Earnings include after-tax gain of 29.4 mln dlrs, or 30 cts a share, versus after-tax gain of 31.4 mln dlrs, or 32 cts a share, for 1986 first quarter. Earnings per share reflects a 50 pct stock dividend in the form of a class B common stock distribution on June 30, 1986.  
LORD ABBETT AND CO MUTUAL FUND DIVIDENDS. LORD ABBETT BOND DEBENTURE FUND Qtly div 28 cts vs 29 cts prior Pay May 5 Record April 9 --- LORD ABBETT U.S. GOVERNMENT SECURITIES FUND Daily div 2.9 cts vs 2.9 cts prior Pay May 15 Record May 15 LORD ABBETT TAX FREE INCOME FUND NATIONAL SERIES Daily div 6.7 cts vs 6.7 cts prior Pay May 15 Record May 15 --- LORD ABBETT TAX FREE INCOME NEW YORK SERIES Daily div 6.7 cts vs 6.7 cts prior Pay May 15 Record May 15 LORD ABBETT TAX FREE INCOME TEXAS SERIES Daily div 5.9 cts vs 5.9 cts prior Pay May 15 Record May 15 --- LORD ABBETT CALIFORNIA TAX FREE INCOME Daily div of 6.2 cts vs 6.2 cts prior Pay May 15 Record May 15  
HEINEKEN SEES HIGHER PROFITS, WIDER PENETRATION. Dutch brewer Heineken NV said it hoped to maintain for a number of years a similar earnings growth to the 7.5 pct increase in net profit achieved in 1986, despite continuing investments in a reorganization program and efforts to extend world penetration. Heineken last month reported a 1986 net profit of 285 mln guilders, after 265 mln in 1985. Chairman Freddie Heineken said the company, Europe's leading beer producer with six pct of market share in 1986, said sales increased by 6.3 pct to 42.1 mln hectoliters. The volume increase was due mainly to a rise in the U.S., Where the brand Amstel Lite saw great demand, and in Europe, where sales accounted for 25.5 pct of the total. Turnover, despite losses in guilder terms due to weaker foreign currencies, rose by 4.4 pct, to 6.7 billion guilders. Further consolidation of foreign companies, including the increase of its stake in leading Spanish brewery <El Aguila S.A.> to 51.2 pct, new ventures and modernization, particularly in French and Spanish interests, eroded profit margins. The company still planned to invest 700 mln guilders this year in restructuring and marketing, Heineken said. Heineken's Spanish activities should start yielding profit next year, Heineken said, adding that its French operations had already turned to profit after vast rationalization last year. Vice Chairman Gerard van Schaik said the decision by the European Court of Justice in Luxembourg to allow foreign beer into the closed West German market -- Europe's biggest beer market -- offered interesting possibilities for Heineken. "We have the beer, but distribution and sales is the important point," van Schaik said, adding that since the ruling Heineken had been inundated by German traders seeking joint ventures. "The question is not if we want to penetrate the German market, but how we are to do it," van Schaik said, adding that while the widely traveled Germans seemed to be developing a taste for foreign beer, the internal structure was very regionalized. Heineken board member Hans Coebergh, responsible for African operations, said he saw Africa as one of the most important beer growth markets in the long term. He said the company, present in Africa since 1932 and with majority stakes in six breweries and interests in 25, was hampered by the lack of hard currencies there. Africa, where beer consumption averages only nine liters per head per year and sales are limited by import restrictions and currency risks, nonetheless accounted for 6.5 pct of total 1986 sales. On-site production is rendered expensive by the high price of imports of essential ingredients. But Heineken scientists have been looking at other possibilities. To balance the costs of imported malt, Heinken launched on the Nigerian market a new beer made of 50 pct sorghum, which had sold successfully, Coebergh said. Heineken is urging farmers to grow the traditional raw materials, but Coebergh noted that banana and palm beer were popular in Rwanda . "This is a possibility, but we could not possibly achieve the Heineken flavor," Coebergh said. Chairman Heineken said the company's seven year efforts to penetrate the Soviet market had finally resulted this week in a contract that relaxed some of the restrictions they faced. But again, a lack of hard currencies limited Heineken's market potential. Heineken now has seven bars in Moscow that are enjoying good sales, but the bars only accept western money.  
WALGREEN CO <WAG> VOTES QUARTERLY DIVIDEND. Qtly div 13-1/2 cts vs 12-1/2 cts prior qtr Pay 12 June Record 21 May  
FRONTIER INSURANCE GROUP INC <FRTR> 4TH QTR NET. Oper shr 25 cts vs six cts Oper net 840,000 vs 139,000 Revs 8,290,000 vs 4,743,000 Avg shrs 3,335,029 vs 2,400,000 Year Oper shr 97 cts vs 53 cts Oper net 2,546,000 vs 1,275,000 Revs 28.8 mln vs 18.5 mln Avg shrs 2,635,665 vs 2,400,000 NOTE: Net excludes investment gain four cts shr vs loss six cts in quarter and gain five cts vs loss six cts in year.  
SOUTHINGTON SAVINGS BANK <SSBB> 1ST QTR NET. Shr 39 cts vs not given Net 707,000 vs 505,000 NOTE: Company went public in July 1986.  
CATERPILLAR INC <CAT> VOTES QUARTERLY DIVIDEND. Qtly div 12-1/2 cts vs 12-1/2 cts prior qtr Pay 20 May Record 20 April  
WALGREEN CO <WAG> 2ND QTR FEB 28 NET. Shr 62 cts vs 58 cts Qtly div 13-1/2 cts vs 13-1/2 cts prior Net 38.8 mln vs 35.7 mln Revs 1.18 billion vs one billion Six mths Shr 84 cts vs 86 cts Net 52 mln vs 52.9 mln Revs 2.14 billion vs 1.82 billion NOTE: Results include charge of four cts shr for latest six mths vs credit of five cts shr for prior six mths from investment tax credit Dividend payable June 12, record May 21  
MEDTRONIC <MDT> SEES 15 PCT EARNINGS GROWTH. Medtronic Inc said it sees 15 pct growth in sales and earnings for the year ending April 30, 1988. At an analysts meeting here the company said that for the year ending April 30, 1987 it will earn about 73 mln dlrs, or about 5.15-5.35 dlrs a share on sales of about 500 mln dlrs. In the year ago period, the company earned 53.4 mln dlrs, or 3.65 dlrs a share, on sales of 402.8 mln dlrs. Winston Wallin, Medtronic chairman, said the company will improve market share in fiscal 1988 in cardiac pacemakers and expand its cardiovascular therapeutic product line. Wallin cautioned analysts not to quickly change their per share estimates for the company as he said Medtronic will have heavy sales and marketing expenses in fiscal 1988. He said the company intends to reinvest its earnings in its businesses and not in its dividends. "Shareholders are better off if we grow the business rather than reinvest in dividends or share repurchases," he said. Wallin said he sees Medtronic's share of the total worldwide pacemaker market increasing to 42 pct in fiscal 1988, from 40 pct in fiscal 1987. He said the worldwide market for cardiovascualr therapeutic products, which includes pacemakers, valves, catheters and lasers, will be valued at about 2.5 billion dlrs 1990 and will double that by 1995. Wallin said, "Our objective is to get a hold of new products and start building market share if we have to beg, borrow or steal to get into new markets." In the past, Medtronic's pacemakers have been plagued with a number of problems leading to product recalls. Regulators also have criticized the industry, citing quality problems and a needless overprescription of pacemakers. "We have no knowledge of any major problems in our pacemakers or leads," Wallin said. "We intend to re-establish our company as the quality leader in the industry." Glen Nelson, executive vice president for Medtronics, said the company intends to diversify internally and through acquisitions of companies in areas of Medtronic's expertise, such as drug delivery systems. Wallin said the 15 pct earnings growth for fiscal 1988 does not include dilutions from acquisitions. "We hope to have some safety provisions so that we won't have any major dilutions from an acquisition." Wallin also said the company will have virtual exclusivity in rate responsive pacemakers for all of fiscal 1988. The company markets Activitrax, the first single chamber pacemaker that varies heartrate in response to physical activity. Siemens AG, a West German company, is also developing a rate responsive pacemaker.  
TRANZONIC COS <TNZ> 4TH QTR FEB 28 NET. Shr 54 cts vs 24 cts Net 633,300 vs 300,859 Sales 15.2 mln vs 13.0 mln Avg shrs 1,165,047 vs 1,224,982 Year Shr two dlrs vs 1.64 dlrs Net 2,379,400 vs 2,011,924 Sales 58.6 mln vs 54.0 mln Avg shrs 1,187,828 vs 1,223,511  
SECURITY PACIFIC EXPECTS BRAZIL LOAN ACTION TO CUT NET BY 7.2 MLN DLRS.  SECURITY PACIFIC EXPECTS BRAZIL LOAN ACTION TO CUT NET BY 7.2 MLN DLRS  
SHOWBOAT <SBO> TO TAKE CHARGE, SEES 3RD QTR LOSS. Showboat Inc will take a charge of 19 to 20 mln dlrs pretax against results for the third quarter ended March 31, director and assistant to the president J. Kell Houssels III told Reuters. He said the charge results from pre-operating expenses of its recently-opened Atlantic City, N.J., Showboat Hotel, Casino and Bowling Center and will cause a loss for the third quarter and probably for all of fiscal 1987 as well. But Houssels said Showboat's earnings for fiscal 1988 should show a sharp increase from fiscal 1986 levels due to the contribution of the new Atlantic City facility. Showboat earned 1,753,000 dlrs in last year's third quarter.  For all of fiscal 1986 it earned 5,769,000 dlrs. Houssels said Showboat since the opening of the Atlantic City hotel/casino, Showboat has had to start charging interest expenses connected with debt it sold to finance the facility directly against income rather than capitalizing the interest as it had been able to do previously. Showboat opened the hotel during its third quarter and gaming began last Thursday on a regular basis after test gaming was completed earlier in the week.  
SECURITY PACIFIC <SPC> LOANS PUT ON NON-ACCRUAL. Security Pacific Corp said it is placing medium and long-term loans to Brazil and Ecuador on a non-accrual basis as of March 31, a move that will reduce first quarter earnings by 7.2 mln dlrs, or nine cts per share, after taxes. Despite the anticipated reduction to quarterly earnings, Security Pacific said it still expects to report first quarter earnings higher than the 88 mln dlrs, or 1.11 dlrs per share reported for the first quarter of 1986. The bank holding company said the action affects 401 mln dlrs of loans to Brazil and 73 mln of loans to Ecuador. Brazil suspended interest payments on its 68 billion dlrs of medium- and long-term debt on February 20. Ecuador, which has foreign debt of roughly eight billion dlrs, has not paid any interest to foreign banks since February. In March Ecuador said it would suspend interest payments for the rest of the year because of an earthquake which halted the export of oil, which accounts for about 75 pct the country's export revenues. In its announcement, Security Pacific said it will record interest income only as it is received in cash. The company also said it believes that Brazil will reach an agreement with its banks and that interest payments will resume later in 1987. The Brazilian negotiations resume on Friday in New York when Central Bank Governor Francisco Gros is expected to ask banks for a 90-day roll-over of some 9.5 billion dlrs of term debt that matures on April 15.  
GOLDEN ENTERPRISES INC <GLDC> 3RD QTR FEB 28 NET. Shr 15 cts vs nine cts Qtly div six cts vs six cts in prior qtr Net 2,002,261 vs 1,168,638 Revs 29.2 mln vs 29.3 mln Avg shrs 13.1 mln vs 13.0 mln Nine mths Shr 49 cts vs 36 cts Net 6,404,536 vs 4,623,295 Revs 92.2 mln vs 88.2 mln Avg shrs 13.1 mln vs 13.0 mln NOTE: Dividend is payable April 30 to holders of record April 20  
HARTMARX <HMX> TARGETS EARNINGS GROWTH. Hartmarx Corp, following a year of restructuring, continues to target record earnings for fiscal 1987, Chairman John Meinert told the annual meeting. Meinert reiterated an earlier comment that earnings for the remainder of the year must double the 1986 level to meet that goal. In fiscal 1986, ended November 30, 1986, Hartmarx reported earnings of 24.8 mln dlrs, or 1.20 dlrs a share, down from the prior year's 42.7 mln dlrs, or 2.25 dlrs a share. The 110-year-old apparel manufacturer recently posted first-quarter earnings of 54 cts a share, up from 40 cts a year ago. Meinert told shareholders Hartmarx has no plans to sell any of its divisions. He added, "We have the financial capacity to take advantage of acquisitions." In 1987, Meinert said the company will open five new and 10 redesigned Kuppenheimer direct-to-consumer stores in Atlanta, Detroit, St. Louis, Washington, D.C. and San Francisco. He said the company's women's apparel continues to grow, and Hartmarx has on the drawing board a Briar concept store which will feature ties, shirts and some tailored clothing.  
GENERAL ELECTRIC CO 1ST QTR SHR 1.37 DLRS VS 1.18 DLRS.  GENERAL ELECTRIC CO 1ST QTR SHR 1.37 DLRS VS 1.18 DLRS  
GENERAL ELECTRIC CO <GE> 1ST QTR NET. Shr 1.37 dlrs vs 1.18 dlrs Net 624 mln vs 537 mln Sales 8.32 billion vs 5.88 billion NOTE: Prior year does not include results of RCA Corp.  
ENERGY DEVELOPMENT <EDP> HAD YEAR LOSS. Energy Development Partners Ltd said it had an operating loss for the year ended December 31 of 2.4 mln dlrs, or 40 cts per share. But it said a 41.5 mln dlr non-cash writeoff of oil and gas properties taken in the first quarter resulted in a net loss of 43.9 mln dlrs, or 7.21 dlrs per share. Energy Development Partners, is a limited partnership which began operating in September 1985. Full year revenues totaled 23.7 mln dlrs, the company also said. It said proved reserves at December 31 totaled 4.8 mln barrels of oil and 88 mln cubic feet of natural gas.  
RITE AID CORP <RAD> SETS DIVIDEND. Qtly div 16-1/2 cts vs 16-1/2 cts Pay April 27 Record April 20  
AIRSENSORS INC <ARSN> 3RD QTR JAN 31 LOSS. Shr loss five cts vs loss six cts Net loss 696,777 vs loss 598,095 Sales 472,812 vs 41,454 Nine mths Shr loss 15 cts vs loss 17 cts Net loss 2,194,482 vs loss 1,751,884 Sales 800,336 vs 151,884  
GENERAL ELECTRIC <GE> 1ST QTR HELPED BY RCA. General Electric Corp said its first quarter results were significantly higher due to the strong results of RCA, which was acquired last year. General Electric also attibuted continued strong performances in plastics, major appliances and the Employers Reinsurance Corp for its strong quarter. GE recorded net earnings for the first quarter 1987 of 624 mln dlrs, or 1.37 dls per shr, up 16 pct from 537 mln dlrs, or 1.18 dlrs per share for the same quarter a year ago. General Electric chairman John Welch Jr reiterated the company's outlook for 1987 in which it expects double-digit GE earnings growth for the year. He said the first quarter results are in line with those expectations. General Electric cited the strong results in TV network and station operations of the National Broadcasting Co, which was not part of GE in the first quarter of 1986, as one reason for its strong earnings. It also noted that aircraft engine operating profit was much higher than a year ago, caused by a increase in shipments than the 1986 quarter, which was impacted by a strike. Aerospace revenues were sharply higher in this year's first quarter from a year ago, mainly because of the inclusion of RCA's aerospace and defense business, the company said. In addition, consumer products revenues were up from last year, mainly because of including sales of RCA video products. General Electric said restructuring provisions of 308 mln dlrs before taxes to implement various strategic moves were charged against operations in the first quarter of 1987. It added that there was a one-time gain of 281 mlns dlrs after taxes from an inventory accounting change. And technical products revenues and operating profit were ahead of last year, led by a strong increases in medical systems volume and the inclusion this year of RCA's communications and related services.  
BANPONCE CORP <BDEP> 1ST QTR NET. Shr 1.08 dlrs vs 1.00 dlr Net 6,215,538 vs 5,757,013  
XEBEC <XEBC> TO REPORT 2ND QTR LOSS. Xebec Corp said it expects to report a loss for its second quarter ended April three, due principally to a decline in sales to International Business Machines Corp <IBM>, the company's largest customer. Xebec also said it expects revenues to total about 23 mln dlrs. The company reported a second quarter loss last year of 1.9 mln dlrs, or 14 cts per share, on 23.9 mln in revenues. Xebec said IBM has historically accounted for about 50 pct of the company's revenues, but that total fell to 20 pct during the quarter just ended. IBM had used Xebec's hard disk drive controller products in the IBM PC/XT, a product which IBM is phasing out. Xebec said it intends to continue streamlining its operations in light of the loss of business. The company also said it has already consolidated two of its plants in Nevada and it now plans to sell unused and surplus assets to provide additional liquidity.  
CATERPILLAR <CAT> REAFFIRMS FIRST QUARTER OUTLOOK. Caterpillar Inc, in remarks delivered at its annual meeting in San Francisco, reiterated its expectation of a loss in the first quarter. It said results would be hurt by a 25 mln dlr one-time charge by Caterpillar Mitsubishi, a 50-pct owned affiliate. The company said it expected profit from operations for the full year to improve over 1986. In remarks prepared for delivery to shareholders, President Peter Donis said Caterpillar's targeted five pct cost reduction in 1987 "will be difficult to achieve because the weaker dollar has limited opportunities to obtain lower material costs."  
KIENA TWO-FOR-ONE SHARE SPLIT APPROVED. <Kiena Gold Mines Ltd> said shareholders approved a previously reported proposed two-for-one common stock split. Record date of the split will be April 21, Kiena said.  
HANOVER INSURANCE <HINS> RAISES DIVIDEND. Hanover Insurance Co said its board declared a quarterly dividend of nine cts per share payable May 15 to holders of record April 17. The dividend comes after a two-for-one stock split, effective April 10, which was approved by shareholders today. The company paid a dividend of 14 cts per share on a pre-split basis.  
RITE AID CORP <RAD> SETS QUARTERLY DIVIDEND. Qtly div 16.5 cts vs 16.5 cts Pay April 27 Record April 20  
VULCAN <VUL> SEES FIRST QUARTER OPERATING LOSS. Vulcan Corp's first quarter operating results will show a loss, Chairman Lloyd I. Miller told told the annual meeting. The company reported a profit of 365,883 dlrs, 23 cts a share, for the first quarter last year with one cent a share coming from non-operating factors, a spokesman said. Miller attributed the expected loss to completion of the purchase transfer and consolidation of operating assets of the O'Sullivan Rubber Division, saying this was proving more costly and taking more time than originally anticipated. Vulcan is working to resolve the problems, Miller told shareholders, adding it appears it will take most of 1987 to find solutions.  
STRATA CORP <STATA> YEAR DEC 31 LOSS. Shr loss 1.11 dlrs vs loss 1.53 dlrs Net loss 7.1 mln vs loss 8.8 mln Revs 3.1 mln vs eight mln  
STRATA <STATA> 1986 EARNINGS REPORT QUALIFIED. Strata Corp said its 1986 earnings report contained a qualified opinion from its independent auditors. Strata said it owed 1.4 mln dlrs in overdue interest to its lender at the end of 1986, and the entire 10.9 mln dlr principle has been classified as a liability. The company, which has an agreement to merge with <Lomak Petroleum Inc>, lost 7.1 mln dlrs in 1986 against a loss of 8.8 mln dlrs a year earlier.  
DAYTON HUDSON CORP <DH> VOTES QUARTERLY PAYOUT. Qtly div 23 cts vs 23 cts prior qtr Pay 10 June Record 20 May  
VULCAN CORP <VUL> REGULAR DIVIDEND. Qtly div 20 cts vs 20 cts in prior qtr Payable June 10 Record May 22  
ARMEL INC <AML> 4TH QTR LOSS. Oper shr loss 79 cts vs loss 2.32 dlrs Oper net loss 2,536,896 vs loss 6,562,472 Revs 13.8 mln vs 14.5 mln Year Oper shr loss 59 cts vs loss 2.35 dlrs Oper net loss 1,712,896 vs loss 5,747,472 Revs 43.6 mln vs 44.2 mln NOTE: 1986 excludes charge of 12 cts per share in the fourth quarter and gain of 11 cts per share in the year.  
MANAGEMENT SCIENCE <MSAI> LOSS MAY TOP 20 CTS. Management Science America Inc, clarifying statements made earlier today, said its loss for the first quarter could exceed 20 cts a share because of non-recurring expenses associated with the acquisition of several companies, including Comserv Inc. Earlier today, the company told a meeting of investors here that the first quarter loss would be 20 cts a share.  
INTERCARE <CARE> TO POST 4TH QTR LOSS. Intercare Inc said it expects to report a substantial loss for its fourth quarter ended January 31 because of a writeoff of expenses associated with its recently terminated debt and equity offering. The company also said the write off includes expenses associated with the acquisition of U.S. Medical Enterprises Inc, and with the restructuring of certain partnerships. Intercare also said it increased its reserve against accounts receivable. Executives at the company were not immediately available to provide additional details. Intercare also said it has implemented a workforce reduction, closed two medical centers and is considering additional closings as a means of reducing a working capital deficit.  
UNITED TECH <UTX> SEES NO EARNINGS IMPACT. United Technologies Corp said the decision by an international consortium not to develop a new engine would have no impact on 1987 or 1988 earnings. <International Aero Engines>, IAE, 30 pct owned by United Technologies' Pratt and Whitney division, has decided not to launch a superfan version of its V2500 engine. "We've told analysts that IAE's decision not to launch a full development program of the IAE superfan for certification in 1991 will have no short term impact on earnings," a United Technologies spokesman told Reuters. Short term refers to 1987 and 1988, the spokesman said. He declined to elaborate. IAE's other owners are Rolls Royce PLC, <Japanese Aero Engines Corp>, Fiat SPA and <MTU> of West Germany. Analysts are estimating United Technologies will earn 3.75 dlrs to 4.50 dlrs a share in 1987. It reported earnings of 36 cts a share in 1986, which included two large writeoffs.  
STEWART AND STEVENSON <SSSS> 4TH QTR NET. Shr profit 72 cts vs profit 14 cts Net profit 3,309,000 vs profit 609,000 Revs 72 mln vs 65 mln Year Shr nil vs loss 4.13 dlrs Net profit 1,000 vs loss 19 mln Revs 249 mln vs 269 mln NOTE: Full name Stewart and Stevenson Services Inc.  
WESTAMERICA BANCORP <WAB> 1ST QTR NET. Shr 98 cts vs 63 cts Net 2,602,000 vs 1,571,000 Loans 834.8 mln vs 729.0 mln Deposits 1.04 billion vs 942.1 mln Assets 1.15 billion vs 1.02 billion  
SOUTHEAST BANCORP <STB> ACTS ON BRAZILIAN DEBT. Following the lead of other major banks, Southeast Banking Corp told the Securities and Exchange Commission it would place 54.2 mln dlrs of medium- and long-term Brazilian debt on non-accrual or cash status. Based on current interest rates, it estimated in a filing that the move will reduce net income by about 800,000 dlrs in the first quarter and 3.2 mln dlrs for all of 1987. The company also said it did not believe the Brazilian debt situation would have a "material adverse" effect on it. It also said it would issue 1,080,000 common shares in connection with its acquisition of Popular Bancshares Corp.  
WILLIAMS <WMB> SEES FLAT PIPELINE VOLUMES IN 1987. Williams Cos said it expected oil and fertilizer transportation volumes to be flat in 1987 but said operating profits from the pipeline unit should improve from 49.4 mln dlrs earned last year when a seven mln dlr special charge was incurred. Williams Pipeline Co took the charge against earnings in 1986 for the removal of more than 500 miles of old pipeline from service and for casualty losses. Companywide, Williams had a net loss of 134 mln dlrs on total revenues of 1.85 billion dlrs, a decline from profits of 32 mln dlrs on sales of 2.46 billion in 1985. In its annual report, Williams said its Northwest Pipeline Corp and Williams Natural Gas Co had natural gas costs that are among the lowest in the nation, averaging 2.04 dlrs and 2.07 dlrs per mcf, respectively, last year. Total natural gas reserves for both units declined to 10,010 billion cubic feet in 1986 from 11,334 billion cubic feet the previous year. The company said its Williams Natural Gas unit, which has less take-or-pay exposure than most major pipelines, should show improvement in its 1987 operating results because of changes tariff and federal tax rates. The company's gas marketing business is expected to have somewhat lower earnings in 1987 because of competition in its operating region, the annual report said. The gas marketing unit earned 26.0 mln dlrs on sales of 285.6 mln dlrs last year. Williams also said it expected a substantial decline in its debt to equity ratio this year because of more than 250 mln dlrs received in cash from the sale of Agrico Chemical Co and proceeds from the sale and leaseback of Williams Telecommunications Co. The telecommunications business, a 2,000-mile fiber optic system for long distance use, will not be profitable until late 1988, Williams said.  
SUPER VALU STORES INC <SVU> 4TH QTR FEB 28 NET. Shr 38 cts vs 25 cts Net 28,339,000 vs 18,650,000 Sales 2.27 billion vs 1.97 billion Avg shrs 74,485,000 vs 74,270,000 Year Shr 1.20 dlrs vs 1.23 dlrs Net 89,301,000 vs 91,247,000 Sales 9.07 billion vs 7.91 billion Avg shrs 74,387,000 vs 74,184,000 NOTE: 1986 period ended February 22, 1986 1986 earnings include net loss of unconsolidated subsidiary of 162,000 dlrs in the quarter and 702,000 dlrs for the year  
PARKER DRILLING CO <PKD> 2ND QTR FEB 28 LOSS. Shr loss 70 cts vs loss 57 cts Net loss 20,616,000 vs loss 16,854,000 Revs 23.1 mln vs 60.1 mln Six mths Shr loss 1.38 dlrs vs loss 1.02 dlrs Net loss 40,780,000 vs loss 29,996,000 Revs 61.0 mln vs 114.9 mln  
(CFCF INC) SIX MTHS FEB 28 NET. Shr 51 cts vs 56 cts Net 5,645,000 vs 6,153,000 Revs 45.9 mln vs 45.3 mln  
HAWKEYE <HWKB> 1986 ANNUAL REPORT QUALIFIED. Hawkeye Bancorp's 1986 annual financial results were qualified by its auditors, according to the annual report. "...there are conditions which may indicate that the company will be unable to continue as a going concern," auditors Deloitte Haskins and Sells said in Hawkeye's annual report to shareholders. Hawkeye reported a 1986 loss of almost 59 mln dlrs, citing an increase in its loan loss provision to 34.7 mln dlrs and restructuring costs of 27 mln dlrs. However, Hawkeye, with assets of 1.09 billion dlrs at 1986 year end, said it expects "to have sufficient cash to meet its obligations for the next 12-month period." Last July the bank holding company reached a debt restructuring agreement which identifed 17 bank subsidiaries and five non-bank operations for disposition. "The restructuring has improved Hawkeye's financial condition, but it does not assure that Hawkeye will be able to survive as a going concern," the report said. Hawkeye's survival will depend on its ability to comply with provisions of the debt restructuring and regulatory agreements and on its ability to return to profitable operations, it said. There can be no assurance that Hawkeye will be able to meet these requirements. However, the company "believes it will be able to do so," Hawkeye said.  
<WASHINGTON BANCORPORATION> 1ST QTR NET. Shr 33 cts vs 37 cts Net 2,051,000 vs 1.8 mln Assets 1.7 billion vs 1.5 billion Deposits 1.4 billion vs 1.2 billion Loans 1.1 billion vs 900 mln Note: Year-ago results restated to reflect merger with Colson Inc.  
STEWART AND STEVENSON SERVICES <SSSS> 4TH QTR. 4th qtr ended Jan 31. Shr profit 72 cts vs profit 14 cts Net profit 3,309,000 vs 609,000 Revs 72 mln vs 65 mln Year Shr profit nil vs loss 4.13 dlrs Net profit 1,000 vs loss 19 mln Revs 245 mln vs 269.1 mln  
WESTAMERICA BANCORPORATION <WSAM> 1ST QTR NET. Shr 98 cts vs 63 cts Net 2,602,000 vs 1,571,000 Assets 1.15 billion vs 1.02 billion Deposits 1.04 billion vs 942.1 mln Loans 834.8 mln vs 729.0 mln Return on avg assets 0.92 pct vs 0.63 pct  
GATEWAY BANCORP INC <GBAN> 1ST QTR NET. Shr 32 cts vs 34 cts Net 902,178 vs 662,647 Deposits 174.7 mln vs 134.4 mln NOTE: Per share amounts adjusted to reflect 10-for-one stock split effective Sept 16, 1986.  
RIO TINTO-ZINC CORP PLC 1986 PRETAX PROFIT 601.7 mln stg. vs 614.4 mln  RIO TINTO-ZINC CORP PLC 1986 PRETAX PROFIT 601.7 mln stg vs 614.4 mln  
RIO TINTO-ZINC NET ATTRIBUTABLE PROFIT LOWER. Year to December 31, 1986 SHR 78.91p vs 83.05p DIV 16.5p making 23.5p vs 22p PRETAX PROFIT 601.7 mln stg vs 614.4 mln NET ATTRIBUTABLE PROFIT 245 mln stg vs 257 mln TURNOVER 3.34 billion stg vs 3.09 billion Note - Accounts have been restated Full name of company is Rio Tinto-Zinc Corp Plc <RTZL.L> Group operating profit 529.4 mln stg vs 470.7 mln Operating costs 2.81 billion stg 2.63 billion Share of profit less losses of related companies 104.4 mln stg vs 165.0 mln Interest receivable/other income 41.5 mln stg vs 47.4 mln Interest payable 73.6 mln stg vs 68.7 mln Tax 274.8 mln stg vs 277.1 mln Leaving 326.9 mln stg vs 337.3 mln RTZ' investment in Australian associate CRA has been equity accounted for 1986 and 1985 figures restated on the same basis after the reduction of RTZ's interest to 49 pct in October 1986.  
Burmah Oil 1986 pre-tax profit 105.9 mln stg vs 79.6 mln..  Burmah Oil 1986 pre-tax profit 105.9 mln stg vs 79.6 mln.  
BURMAH OIL PROFIT CLIMBS TO 105.9 MLN STG. Year 1986 Shr 33.54p vs 34.2p. Final div 9.5p, making 14p vs 12.75p. Pre-tax profit 105.9 mln stg vs 79.6 mln. Net profit before minorities 56 mln vs 52.1 mln. Turnover net of duties 1.32 billion stg vs 1.46 billion. Minorities 800,000 stg vs same. Extraordinary debit 20.4 mln vs 28.2 mln. NOTE: Company's full name is The Burmah Oil Co Plc <BURM.L> REUTER^M  
RTZ SEES RISING U.S. OUTPUT AIDING 1987 RESULTS. Rio Tinto-Zinc Corp Plc <RTZL.L>, RTZ, said the predicted rise in industrial production in the U.S. And Europe should boost its 1987 performance. Consumption of some base metals and their dlr prices are showing signs of improvement, although iron ore markets have weakened. The oil price in U.S. Dlrs is above the 1986 average, and if sustained, should improve energy earnings. The company was commenting in a statement on its 1986 results which, on a restated basis, showed net attributable profits lower at 245 mln stg after 257 mln the previous year. Pretax profits also dipped to 601.7 mln stg after 614.4 mln. RTZ said the excellent performance of its expanding range of industrial businesses in 1986 was offset by the collapse in oil prices. Industrial businesses contributed 202 mln stg to net profit, a 40 pct increase from 144 mln in 1985, and 60 pct of the total. Trading performance improved at wholly-owned subsidiaries RTZ Borax Ltd, RTZ Cement Ltd, RTZ Chemicals Ltd and RTZ Pillar Ltd. First time contributions from recent investment and acquisitions mainly in speciality chemicals and minerals also aided performance. Metals activities contributed 83 mln stg to net profit.                   
BRIDGESTONE CORP <BRIT.T> YEAR TO DECEMBER 31. Group shr 35.99 yen vs 38.28 Net 21.01 billion vs 21.08 billion Current 47.73 billion vs 48.06 billion Operating 55.04 billion vs 54.99 billion Sales 792.71 billion vs 864.28 billion NOTE - Company forecast for current year is group shr 37.70 yen, net 22 billion, current 52 billion and sales 800 billion.  
BURMAH OIL PROSPECTS REMAIN FAVOURABLE. The current year has opened well, with trading prospects remaining favourable, Burmah Oil Co Plc <BURM.L> said in a statement with its 1986 results. The company plans to maintain a steady rate of investment in its marketing operations and to obtain improved profit margins on its liquified natural gas, LNG, project. Burmah has the financial capacity to continue making acquisitions within its business sectors, it added. The rationalisation programme, including sale of the Bahamas oil terminal and all peripheral activities, is now complete. Pre-tax profit for 1986 rose to 105.9 mln stg from 79.6 mln. REUTER^M  
GEBRUEDER SULZER 1986 PROFIT UP ALMOST 60 PCT. Year 1986 Consolidated net profit 67 mln Swiss francs vs 42 mln. Dividend 100 francs per registered share vs 80 francs and 10 francs per participation certificate vs eight. Consolidated turnover 4.55 billion francs vs 4.54 billion. Parent company net profit 38.2 mln francs vs 26.4 mln. Parent company turnover 2.20 billion francs vs 2.29 billion. Note - Company's full name is Gebrueder Sulzer AG <SULZ.Z>  
NATIONALE NEDERLANDEN PROFITS, SALES STEADY. Year 1986 Net profit 635.5 mln guilders vs 603.4 mln. Revenues 17.35 billion guilders vs 17.27 billion. Net profit per nominal 2.50 guilder share 5.79 guilders vs 5.67, corrected for capital increase. (1985 uncorrected figure 5.73). Dividend 2.50 guilders vs 2.38, corrected. (2.40 uncorrected.) Note - Full name is Nationale Nederlanden NV <NTNN.AS>  
PHILIPPINE TELEPHONE FIRM PLANS STOCK SPLIT. The Philippine Long Distance Telephone Co <PLDT.MN> is planning a two-for-one stock split and a 20 pct stock dividend later this year to reduce excess market buoyancy, Vice-President Sennen Lazo told Reuters. Lazo said the stock split would reduce the par value of the company's common stock from 10 to five pesos. He said the stock split would apply to holders of about 18 mln common shares of stock on the record date of September 15 1987. "The exercise should make our stock more marketable," Lazo said. "Now it is beyond the reach of many small investors." PLDT common stock surged from a low of 37 pesos in February 1986 to 367.50 at close of trading yesterday on the Manila Stock Exchange. Lazo said the 20 pct stock dividend, payable on October 15, would also apply to stockholders on record as of September 15. PLDT reported 1986 net income of 1.89 billion pesos, up 68 pct from 778.9 mln pesos in 1985, on operating revenues of six billion pesos, up from 4.7 billion pesos in 1985. At end December 1986 the company had 417,100 stockholders. A PLDT spokesman said the company's profits are likely to be substantial since the government raised its franchise tax to three pct from two and to impose a 35 pct corporate income tax from which it was previously exempt. The government has not so far ordered the implementation of the tax decision. PLDT is the largest of 58 telephone companies in the Philippines. On December 31 1986 the company had 856,014 telephones in operation, representing 94 pct of all instruments in the country. In Manila item "Philippine Telephone firm plans stock split" please read in page 3, first para, "the company's profits are likely to be substantially cut" (inserting dropped word). This replaces  "the company's profits are likely to be substantial"  
CCF REPORTS 34.8 PCT PROFIT BOOST, SHARE SPLIT SEEN. Credit Commercial de France <CCFP.PA> reported a parent company net profit up 34.8 pct to 140.1 mln francs from 103.9 mln francs a few weeks before its denationalisation around the end of this month. Official sources said the bank, France's sixth largest in terms of its deposits and seventh in terms of its assets,  planned a share split to increase the number of shares on offer ahead of the sale of 40 pct of its ordinary share capital to the public, of 10 pct to staff and 20 pct abroad. Previously one of France's biggest private banks, it was nationalised by the Socialists in 1982. The sources said it was too early to give details of the planned split or of the share price, but cited April 27 as a likely date for the flotation launch. So far 30 pct of the group's capital, currently at 10.33 mln shares of 100 francs nominal, has been offered for sale to large private investors to constitute a solid core of eight to ten shareholders before the flotation. The private tender offer closes on April 16, while a 12 mln franc advertising campaign for the flotation begins on Sunday. "The privatisation will be a way of attracting extra clients," CCF deputy director-general Rene de la Serre told Reuters. Market sources put the total value of CCF's privatisation at between four and five billion francs. De la Serre said the bank was likely to attract at least the same number of investors as <Sogenal>, another recently privatised bank in which 850,000 people bought shares. The government's sweeping privatisation programme has also included the sale of Saint-Gobain <SGEP.PA>, and Cie Financiere de Paribas <PARI.PA>. The sale of <Banque du Batiment et des Travaux Publics> and <Banque Industrielle et Mobiliere Privee> should be completed this month, while third largest French bank Societe Generale <SGEN.PA> will be privatised later this year.  
GEORGE WIMPEY PROFITS UP 42 PCT TO 66.5 MLN STG. Year to December 31, 1986. Shr 18.35p vs 14.95p Div 3.75p vs 2.9p making 4.75p vs 3.75p Pretax profit 66.5 mln stg vs 46.9 mln Tax 14.6 mln stg vs 4.5 mln Net profit 51.9 mln stg vs 42.4 mln Turnover 1.44 billion stg vs 1.58 billion Note - Full name of company is George Wimpey Plc <WMPY.L>. Operating profit before exceptional items 88.9 mln stg vs 80.5 mln Exceptional debits 3.0 mln stg vs 11.6 mln Operating profit 85.9 mln stg vs 68.9 mln Share of profits less losses of associated companies 1.4 mln stg vs 2.4 mln loss Interest - net payable 20.8 mln stg vs 19.6 mln Attributable minority profits debits 0.2 mln stg vs 0.3 mln Extraordinary items debit 3.4 mln stg vs 4.3 mln credit Net borrowings 195.1 mln stg vs 193.5 mln  
AEGON 1986 NET PROFIT RISES 6.4 PCT. Net profit 327.1 mln guilders vs 307.5. Total revenue 7.97 billion guilders vs 8.7 billion. Net profit per five guilder nominal share 9.33 guilder vs 9.25 (corrected for capital increase). Final dividend 1.30 guilders and 2.4 pct stock vs 1.30 guilders and 2.2 pct in stock. Interim dividend already paid was 1.30 guilders. Note : full name of company is AEGON NV <AEGN.AS>  
NATNED FORECASTS 1987 RESULTS IN LINE WITH 1986. The Netherlands' largest insurer Nationale Nederlanden NV <NTTN.AS> (NatNed) said it expected at least unchanged results in 1987 after reporting 1986 net profits up 5.3 pct to 635.5 mln guilders from 603.4 mln in 1985, Revenues increased by 0.5 pct to 17.35 billion guilders after 17.27 billion the previous year, and the dividend was raised to 2.50 guilders per share from 2.38 guilders in 1985, corrected on a capital increase. The company said guilder revenue and profit were pressured by falls in exchange rates, particularly in the US and Australian dollar and sterling. Without these currency fluctuations, net profit would have been 30.7 mln guilders higher and revenue 1.97 billion higher, NatNed said. The international share in turnover was 50 pct in 1986 compared with 52 pct in 1985. The company's life insurance result fell to 365.7 mln guilders after 428.4 mln in 1985 due to currency influences, tighter interest margins and increased investment. Claim payouts fell to 9.9 mln guilders after 66.6 mln the previous year. The company's total assets reached 69.87 billion guilders in 1986 against 67 billion the year before. Assets per share equalled 65.68 guilders against 65.53. Without these currency fluctuations, net profit would have been 30.7 mln guilders higher and revenue 1.97 billion higher, NatNed said. The international share in turnover was 50 pct in 1986 compared with 52 pct in 1985. The company's life insurance result fell to 365.7 mln guilders aft INTERRUPTED  
AEGON EXPECTS MODERATE RISE IN 1987 PROFITS. Dutch insurer AEGON NV <AEGN.AS> reported a 6.4 pct increase in 1986 net profits to 327.1 mln guilders and said it expected a moderate increase in profits for 1987. Total revenue was eight pct lower in 1986 at 7.97 billion guilders vs 8.7 billion guilders in 1985. The company said its revenues were down due to lower foreign exchange rates and a change in accounting practice. It added that revenues would have risen by about seven pct had those changes not occurred. Revenue from Dutch operations rose five pct in 1986, mainly due to its life insurance business. Health insurance revenues in the Netherlands also rose despite a notable shift to insurances with lower premiums and higher personal risks. Damage insurances made losses, mainly due to car damage insurances. AEGON did not specify the loss. In the United States, revenue in guilders from health and life insurance was lower. AEGON said this was due to a change in accounting for U.S. Annuities. AEGON said annuities are subject to such strong personal investment influences that it should be accounted differently from the more traditional insurances. This change in accounting practice and another change to account for profits made on fixed interest investments, resulted in an incidental rise in net profits of 31 mln guilders. AEGON said incidental negative influences on net profits were slightly higher, being the lower dollar rate, high initial costs for new products, and the cost of new headquarters in The Hague. In 1986, a large number of new insurance products emerged in the Netherlands and the U.S., AEGON said. Large initial costs for these products have depressed net profits somewhat. Monumental Corp, a U.S. Insurer which merged with AEGON in May 1986, saw its profits almost completely eroded by these costs and made only a small contribution to the group's profits. AEGON said it has written-off 657 mln guilders in goodwill for Monumental Corp. AEGON's net equity was 2.71 billion guilders in December 1986, against 3.46 billion the year before.  
UNIFIRST CORP <UNF> SETS QUARTERLY. Qtly div five cts vs five cts prior Pay July One Record June 17  
<TRUMP PLAZA> 4TH QTR NET. Net profit 2,529,000 vs loss 1,066,000 Revs 59.0 mln vs 52.6 mln Year Net profit 15.4 mln vs profit 865,000 Revs 247.0 mln vs 231.1 mln NOTE: Company became wholly owned and operated by Donald Trump in May 1986, when he acquired 50 pct interest that had been owned by former operator Holiday Corp <HIA>.  
CB AND T BANCSHARES INC <CBTB> 1ST QTR NET. Shr 27 cts vs 24 cts Net 5,223,000 vs 4,682,000 Avg shrs 19.7 mln vs 19.4 mln NOTE: Results reflected pooled acquisition of First Community Bancshares Inc on March 31, 1987 and include Camden Bancorp from January 31, 1987 purchase.  
XICOR INC <XICO> 1ST QTR MARCH 22 NET. Shr profit five cts vs loss 16 cts Net profit 689,000 vs loss 1,910,000 Revs 12.3 mln vs 9,432,000 NOTE: 1987 net includes 276,000 dlr tax credit.  
GEORGE WIMPEY SAYS BENEFITS OF RESTRUCTURING SEEN. George Wimpey Plc <WMPY.L> said  the outlook for 1987 looked encouraging as the company realised the continuing benefits of restructuring. It said its overall financial position showed further improvement in 1986 and the reshaping of its U.K. Business into clearly defined and activity related divisions had been successfully achieved. Wimpey was commenting in a statement on its 1986 results which showed pretax profits up 42 pct to 66.5 mln stg. The group had a good overall year in North America, the company said in a statement.  
DATATRAK INC <DTRK> 3RD QTR FEB 28 NET. Shr profit nil vs profit nil Net profit 27,622 vs profit 5,556 Sales 1,031,306 vs 840,906 Nine mths Shr loss one ct vs loss two cts Net loss 195,095 vs loss 445,379 Sales 2,702,085 vs 2,219,961  
SUNTRUST BANKS INC <STI> 1ST QTR NET. Shr 54 cts vs 49 cts Net 70.2 mln vs 64.0 mln NOTE: Share adjusted for two-for-one split in July 1986. Results restated for pooled acquisition of Third NAtional Corp in December 1986. Net chargeoffs 15.0 mln dlrs vs 14.2 mln dlrs. Assets 25.8 billion dlrs, up 7.2 pct from a year earlier, deposits 21.1 billion, up 9.4 pct, and loans 17.1 billion dlrs, up 17.2 pct.  
INTERNATIONAL THOMSON TO REPORT IN U.S. FUNDS. <International Thomson Organisation Ltd> said it will report financial results in U.S. funds rather than sterling, beginning from Jan 1, 1987. It said the change will not be applied retroactively to prior financial periods. The company said as a result of recent investments, most of its assets now are located in the United States.  
PHILIP CROSBY ASSOCIATES INC <PCRO> 4TH QTR NET. Shr three cts vs 18 cts Net 220,000 vs 1,250,000 Revs 11.8 mln vs 9,430,000 Year Shr 45 cts vs 69 cts Net 3,400,000 vs 4,037,274 Revs 45.1 mln vs 34.3 mln  
COLONIAL AMERICAN BANKSHARES CORP <CABK> 1ST QTR. Shr 52 cts vs 40 cts Qtly div 18 cts vs 15 cts prior Net 793,740 vs 603,661 NOTE: Share adjusted for 10 pct stock dividend in November 1986. Dividend pay May One, record April 25.  
PHYSIO TECHNOLOGY <PHYT> SEES LOSS, IN DEFAULT. Physio Technology Inc said it expects to have a third quarter, ended March 31, loss of about 200,000 dlrs and is in default on its bank loan because of the resignation of chairman and chief executive officer. The company said the loss followed four quarters of modest profits. In the year ago quarter it earned 11,000 dlrs, or one cent a share. For the first half of fiscal 1987, it reported a profit of 42,000 dlrs, or two cts a share, compared to a year earlier loss of 294,000 dlrs, or 17 cts a share. It said President Michael R. Hall will assume the duties of chief executive officer. Physio Technology said the resignation of Chairman James C. Lane can constitute non-compliance with its Series A convertible subordinated debentures due 1996 and a default under its agreement with the Merchants Bank of Kansas City. It explained a declaration of non-compliance under the debentures would create a a default under the loan agreements requiring immediate payment of 1.8 mln dlrs of debentures and about 450,000 dlrs outstanding under the bank credit line. The company said the debenture holders intend to waive the non-compliance, but reserve the right to withdraw the waiver at the end of any 30 day period. Physio Technology said it is changing its field sales force to independent representatives and dealers from employees to "significantly reduce its fixed overhead." Its statement did not indicate how many employees would be affected by the move. The company said Lane will become an independent dealter for the company in certain midwestern states. He will continue to serve as a director, it added.  
WASHINGTON FEDERAL SAVINGS <WFSL> 2ND QTR NET. Qtr ends March 31 Shr one dlr vs 76 cts Net 11.9 mln vs 8,929,000 Six mths Shr 1.92 dlrs vs 1.43 dlrs Net 22.8 mln vs 16.8 mln NOTE: full name of bank is washington federal savings and loan association.  
PONCE FEDERAL BANK F.S.B. <PFBS> 1ST QTR NET. Shr 63 cts vs 89 cts Net 3,425,216 vs 3,370,682 Avg shrs 5,421,330 vs 3,803,425 NOTE: net for both qtrs reflects gains on sales of securities of 1,755,137, or 51 pct of net, in 1987; and 3,001,222, or 89 pct of net in 1986.  
BROWN BOVERI UND CIE AG LIFTS 1986 DIVIDEND. Dividend on 1986 business 12 marks per share vs seven marks. (Company is a subsidiary of Switzerland's BBC AG Brown Boveri und Cie <BBCZ.Z>).  
WHIRLPOOL CORP 1ST QTR SHR 66 CTS VS 67 CTS.  WHIRLPOOL CORP 1ST QTR SHR 66 CTS VS 67 CTS  
VOLKSWAGEN DIVIDEND UNCHANGED ON 1986. Dividend on 1986 business unchanged at 10 marks per ordinary share. Company also set dividend of 11 marks for new preference shares, which were issued last year. (Note: Company has said profit will match 1985 level, despite provisions of 480 mln marks connected with alleged currency fraud. Group net profit in 1985 was 596 mln marks, parent company net was 477 mln marks. Company's full name is Volkswagen AG <VOWG.F>).  
WHIRLPOOL CORP <WHR> 1ST QTR NET. Shr 66 cts vs 67 cts Net 48,700,000 vs 49,300,000 Sales 961.0 mln vs 870.6 mln Avg shrs 74,123,837 vs 73,374,398  
SHOWBOAT <SBO> DECLARES STOCK SPLIT. Showboat Inc said its board declared a two-for-one stock split, payable to shareholders of record on May 15.  
REXHAM CORP <RXH> 1ST QTR NET. Shr 70 cts vs 42 cts Net 2,918,000 vs 1,746,000 Sales 68.3 mln vs 53.5 mln NOTE: 1987 net includes pretax gain 400,000 dlrs from change in pension accounting. 1987 results include Production Graphics Corp and Systems Technology and Weapons System Test Divisions of NEw Technology Inc, acquired December 30, 1986.  
FIRST EASTERN CORP <FEBC> 1ST QTR NET. Shr 50 cts vs 47 cts Net 3,445,000 vs 3,193,000 NOTE: Share adjusted for two-for-one stock split in January 1987.  
ABBOTT LABORATORIES 1ST QTR NET SHR 62 CTS VS 52 CTS.  ABBOTT LABORATORIES 1ST QTR NET SHR 62 CTS VS 52 CTS  
REICHHOLD CHEMICAL <RCI> SETS ANTI-TAKEOVER PLAN. Reichhold Chemical Inc said its board adopted a warrant dividend plan in which one preferred stock purchase right will be distributed as a dividend on each common share outstanding. The company said its warrant dividend plan is designed to protect its shareholders against unsolicted, coercive attempts to aquire control without making an adequate offer for all shares. Reichhold said the adoption is not a response to any specific takeover attempt. Reichhold said each right will entitle shareholders to buy one one-hundreth of a share of a newly created series of preferred stock at an initial exercise price of 120 dlrs, with dividend and voting rights approximately equal to those of one share of the company's common stock. The rights will be exercisable only if, without Reichhold's prior consent, a person or group a acquires 20 pct or more of the voting power or announces a tender offer which would result in 20 pct ownership, the company said. Reichhold said it is entitled to redeem the rights at five cts apiece before a 20 pct position has been acquired, or before an existing 20 pct shareholder buys an additional two pct or more of the voting power of the company, or in connection with certain transactions afterward. The tax-free distribution will become effective May 1, 1987, and will expire 10 years later, the company said. Details of the plan are outlined in a letter to be mailed to stockholders.  
ABBOTT LABORATORIES INC <ABT> 1ST QTR NET. Shr 62 cts vs 52 cts Net 142.0 mln vs 123.0 mln Sales 1.00 billion vs 865.0 mln  
VW SAYS 480 MLN MARKS MAXIMUM FOR CURRENCY LOSSES. Losses for Volkswagen AG <VOWG.F>, VW, linked to an alleged foreign currency fraud will not exceed the 480 mln marks provision already made, a VW spokesman said. The spokesman was commenting after VW had confirmed it would pay an unchanged 10 mark dividend for ordinary shares on 1986 business, despite the provision. One West German newspaper today quoted foreign currency dealers in Frankfurt as speculating that the total losses from the currency affair could be as high as 1.5 billion marks, but the VW spokesman described 480 mln marks as an "upper limit." VW said in a statement following today's supervisory board meeting that it had discussed the foreign currency scandal in detail, and was setting up a new probe into its foreign currency activities to be carried out by an unnamed auditing company. VW has said computer programs were erased and documents were faked in the alleged fraud in which it believes transactions intended to protect it against possible foreign currency losses were not completed. VW's former foreign currency chief Burkhard Junger was arrested on Monday on suspicion of embezzlement and of having evaded justice. Earlier VW had said that its 1986 results would match 1985 profits. VW's group net profit in 1985 was 596 mln marks and parent company net was 477 mln marks. It also said it recommend an unchanged dividend to the supervisory board. The company has also set a dividend of 11 marks for new preference shares, which were issued last year. Analysts have described the held dividend as a move to reassure worried shareholders. VW increased nominal capital by 300 marks last year to 1.5 billion marks, with the result that its total dividend payment on 1986 will be 306 mln marks compared with 240 mln on 1985, since the new capital was in preference shares. The share analysts say VW will have to dig into reserves in order to maintain the disclosed 1986 profit at 1985 levels. At the end of 1985, VW had parent company reserves of slightly less than three billion marks.  
FEDERATED DEPARTMENT STORES MARCH SALES UP 4.9 PCT.  FEDERATED DEPARTMENT STORES MARCH SALES UP 4.9 PCT  
ALEX. BROWN <ABSB> SETS SPLIT, TO OFFER SHARES. Alex. Brown Inc said it has declared a three-for-two stock split, payable May 29, record May 22. The company also said it has filed to offer 912,000 common shares, including 162,000 to be sold by a shareholder, with company proceeds to be used for working capital and general corporate purposes.  Its Alex. Brown and Sons Inc subsidiary is lead underwriter. The offering is expected to be made before the record date of the split, the company said.  
HIGHLAND SUPERSTORES INC <HIGH> 4TH QTR NET. Period ended Jan 31 Shr 38 cts vs 61 cts Net 7,012,000 vs 11,193,000 Revs 223.0 mln vs 200.3 mln Year Shr 1.11 dlrs vs 1.36 dlrs Net 20,214,000 vs 23,602,000 Revs 656.5 mln vs 520.5 mln Avg shrs 18,257,631 vs 17,376,480  
TEXAS AMERICAN <TAE> OMITS PREFERRED PAYOUT. Texas American Energy Corp said its board has decided to again omit the quarterly dividend on its 2.575 dlr cumulative convertible exchangeable preferred stock. The dividend would have been payable May One.  The company last paid 64.3 cts a share on the issue in August 1986.  
VORNADO INC <VNO> 4TH QTR JAN 31 NET. Shr 1.64 dlrs vs 1.56 dlrs Net 4,583,000 vs 5,313,000 Revs 20.1 mln vs 19 mln Avg shrs 2.8 mln vs 3.4 mln Year Shr 5.06 dlrs vs 5.92 dlrs Net 16 mln vs 20.3 mln Revs 74.6 mln vs 68 mln Avg shrs 3.2 mln vs 3.4 mln  
HEALTH AND REHABILITATION <HRP> INITIAL PAYOUT. Health and Rehabilitation Properties Trust said it declared an intitial dividend of 55 cts per share for the period ending March 31, 1987 The dividend will be payed May 20 to shareholders of record on April 20, the company said. The company said it organized in late 1986 and closed its intitial public offering of shares Dec 23, 1986. The initital dividend includes five cts attributable to the period between Dec 23 and 31, 1986, and 50 cts attributable to the first qtr of 1987, ending March 31, 1987.  
T. ROWE PRICE <TROW> SEES HIGHER FIRST QUARTER. T. Rowe Price Associates said its first quarter earnings rose about 50 pct from the year-ago 2,634,000 dlrs and revenues about 30 pct from the year-ago 24.2 mln dlrs. It said it expects "very good" earnings and revenue growth this year.  In 1986 it earned 14.8 mln dlrs on revenues of 111.1 mln dlrs.  
HERITAGE FINANCIAL SERVICES <HERS> 1ST QTR NET. Shr 45 cts vs 43 cts Net 1,503,000 vs 938,000 Avg shrs 3,358,664 vs 2,158,664 NOTE: Company had its initial public offering of 1,200,000 shares in October, 1986  
NATIONAL COMPUTER <NLCS> SEES EARNINGS GROWTH. National Computer Systems Inc expects fiscal year earnings to improve by about 20 pct, the company told analysts, although it said the April 30 first quarter should show "down earnings and virtually flat revenues." Chairman Charles Oswald said National Computer has taken steps to improve margins. He said revenues are expected to increase modestly because of the company's decision to downsize its leasing business, nonrecurring revenueslast year from a one-time Texas teacher assessment project and the impact of the discontinuance of products last year. Oswald said National Computer's first quarter results will be down as a result of a major financial systems sales last year, a higher effective tax rate and the increased number of shares outstanding. The company said the next three consecutive quarters should demonstrate "excellent earnings growth."  
<STRATHFIELD OIL AND GAS LTD> YEAR NET. Shr 46 cts vs 48 cts Net 1,196,331 vs 1,341,314 Revs 5,153,109 vs 7,680,350  
CONSOLIDATED PAPERS INC <CPER> 1ST QTR NET. Shr 1.01 dlrs vs 1.08 dlrs Net 21,983,000 vs 23,434,000 Sales 174.9 mln vs 161.7 mln  
MET-COIL SYSTEMS CORP<METS> 3RD QTR FEB 28 NET. Shr seven cts vs nine cts Net 168,000 vs 206,000 Sales 15.3 mln vs 10.9 mln Nine mths Shr 10 cts vs 38 cts Net 228,000 vs 649,000 Sales 35.8 mln vs 32.5 mln Qtly div three cts vs three cts prior Pay April 30 Record April 20  
FORD RAISES QTLY PAYOUT 10 CTS/SHR TO 75 CTS.  FORD RAISES QTLY PAYOUT 10 CTS/SHR TO 75 CTS  
FORD MOTOR CO <F> RAISES QTLY PAYOUT. Qtly div 75 cts vs 65 cts prior Pay June one Record May one  
DEKALB CORP <DKLBB> 2ND QTR FEB 28 NET. Shr 20 cts vs 14 cts Net 2.4 mln vs 1.7 mln Revs 136.7 mln vs 174.4 mln Six Mths SDhr 72 cts vs 82 cts Net 8.6 mln vs 9.9 mln Revs 212.5 mln vs 268.8 mln  
ABBOTT <ABT> SEES GAINS FROM WEAKER DOLLAR. Abbott Laboratories Inc said its 1987 first quarter record results reflected continued productivity improvement, higher volume, better product mix and a weaker U.S. dollar. Abbott reported 1987 first quarter earnings rose to a record 142 mln dlrs or 62 cts a share on record sales of one billion dlrs. Research and development expenses, most of which was applied to diagnostic and pharmaceutical products, increased by 23 pct to 78 mln dlrs, it said. Sales of pharmaceutical and nutritional products were 548 mln dlrs in the first quarter, up 17.6 pct over a year ago, Abbott said. Hospital and laboratory product sales in the first quarter rose 14.1 pct to 456 mln dlrs, it said. First quarter sales in domestic markets advanced 11.5 pct to 688 mln dlrs while international sales jumped 27.1 pct to 316 mln dlrs, Abbott said.  
RJR NABISCO FIRST QUARTER NET TO INCLUDE 208 MLN DLR GAIN, 209 MLN DLR CHARGE.  RJR NABISCO FIRST QUARTER NET TO INCLUDE 208 MLN DLR GAIN, 209 MLN DLR CHARGE  
HEALTH/REHABILITATION <HRP> SETS FIRST PAYOUT. Health and Rehabilitation Properties Trust said its board declared an initial dividend of 55 cts, including 50 cts for the first quarter just ended and five cts from its initial operating period that began December 23. The dividend is payable May 30, record April 20.  
ROYAL BUSINESS GROUP INC <ROY> 2ND QTR MARCH ONE. Shr 49 cts vs five cts Shr diluted 45 cts vs five cts Net 651,000 vs 95,000 Revs not given 1st half Shr 57 cts vs one ct Shr diluted 53 cts vs one ct Net 781,000 vs 56,000 Revs not given NOTE: Current year net both periods includes gain 873,000 dlrs from repurchase of securities. Results exclude Business Forms Division, which is to be sold.  
<MSE CABLE SYSTEMS INC> 4TH QTR NET. Shr nil vs nil Net 18,534 vcs 27,431 Revs 270,032 vs 188,326 Avg shrs 6,598,871 vs 6,090,576 Year Shr nil vs nil Net 47,299 vs 21,570 Revs 1,004,392 vs 677,909 Avg shrs 6,618,063 vs 5,931,324 NOTE: Share adjusted for one-for-11 reverse split.  
RULE INDUSTRIES INC <RULE> 2ND QTR FEB 28 NET. Shr 17 cts vs 10 cts Net 408,000 vs 237,000 Revs 8,863,000 vs 6,738,000 1st half Shr 27 cts vs 15 cts Net 647,000 vs 356,000 Revs 17.2 mln vs 12.5 mln  
NATIONAL DISTILLERS <DR> SEES SECOND QTR GAIN. National Distillers and Chemical Corp expects to realize a second quarter after-tax gain of four dlrs per share from the 545 mln dlr sale of its spirits business to American Brands Inc <AMB>. National Distillers' stock rose 1-1/8 to 65-1/2, after an opening delay on the New York Stock exchange for an imbalance of orders. "I think the sales price was higher than most people expected," said John Henry of E.F. Hutton Group. A company spokeswoman said the four dlr per share gain will be included in second quarter net, which compares with 31 cts per share last year, including the spirits and wine business "They netted over 700 mln dlrs for spirits and wine. That will ease their interest cost burden," said Henry. National Distillers sold its wine business last month to Grand Metropolitan PLC's Heublein Inc for 128 mln dlrs. Henry said he had anticipated National Distillers would net only 600 mln dlrs at the most from the sale of the two liquor businesses. Henry said the company recovered from the sales the cost of buying Enron Chemicals in the fourth quarter last year. National Distillers paid 570 mln dlrs cash for Enron and assumed 34 mln dlrs in debt. National Distillers said at the time it bought Enron it would sell the spirits and wine businesses, moving more into the chemical area. For 1986, two thirds of income were from chemicals and propane. National Distillers earned, excluding the liquor businesses, 2.21 dlrs per share for 1986. Income from discontinued operations, including the liquor businesses, was 67 cts per share.  
WASTE RECOVERY INC <WRII> 4TH QTR NET. Shr loss eight cts vs loss nine cts Net loss 311,255 vs loss 157,941 Revs 546,069 vs 284,636 Avg shrs 3,790,235 vs 1,819,680 Year Shr loss 27 cts vs loss 24 cts Net loss 858,624 vs loss 399,385 Revs 1,491,518 vs 1,407,441 Avg shrs 3,175,157 vs 1,692,700  
BRANCH CORP <BNCH> 1ST QTR NET. Shr primary 99ct vs 82 cxts Shr diluted 93 cts vs 78 cts Net 7,784,000 vs 6,357,000 Assets 3.25 billion vs 2.74 billion Deposits 2.58 billion vs 2.24 billion Loans 2.20 billion vs 1.81 billion  
ZAYRE CORP <ZY> RAISES QUARTERLY. Qtly div 10 cts vs eight cts prior Pay June Four Record May 14  
RJR NABISCO <RJR> HAS OFFSETTING GAINS, CHARGES. RJR Nabisco Inc said its 1987 first quarter results will include an after-tax gain of 208 mln dlrs from the sale of Heublein Inc and offsetting charges. The company said its operations are performing well and in line with expectations. RJR Nabisco said the charges reflect reserves it established to cover certain expenses. RJR Nabisco said the expenses covered, on after-tax basis, include -- -- 50 mln dlrs for the write-down of redundant equipment and facilities resulting from modernization of its U.S. tobacco operations, -- 79 mln dlrs for continuing restruction of its food subsidiaries, and -- 80 mln dlrs in connection with the early retirement of high coupon debt.  
BAYBANKS INC <BBNK> 1ST QTR NET. Oper shr 1.08 dlrs vs 96 cts Oper shr diluted 1.02 dlrs vs 89 cts Oper net 16.1 mln vs 12.8 mln Avg shrs 14.9 mln vs 13.4 mln Avg shrs 16.1 mln vs 14.8 mln NOTE: 1987 net excludes gain 4,820,000 dlrs from cumulative effect of change in calculating depreciation expense.  
STUDENT LOAN MARKETING ASSOCIATION <SLM> 1ST QTR. Shr 95 cts vs 71 cts Net 42.4 mln vs 34.5 mln Assets 18.61 billion vs 15.66 billion  
MEDITRUST <MTRUS> RAISES QUARTERLY. Qtly div 43 cts vs 38 cts prior Pay May 15 Record April 30  
MONSANTO <MTC> UNIT SEES OPERATING LOSS IN 1987. Monsanto Corp's G.D. Searle and Co unit said it will report an operating loss for 1987, mainly due to expenses for research and development. Searle chairman Sheldon Gilgore said Searle's operating loss in 1987 will be less than the 87 mln dlr operating loss in 1986. He said Searle's first quarter sales will be up 21.8 pct to 179 mln dlrs from 147 mln dlrs in the year ago quarter. In 1986 Searle's sales were 665 mln dlrs. Gilgore said the company intends to have sales of three billion dlrs by the mid-1990s. He said the company anticipates approval in Japan, the U.S., Italy, Spain and the U.K. for its ulcer treatment drug Cytotech. He also said that in a paper not yet published the drug was shown to prevent a flare-up of ulcers for a longer period of time than Tagamet, made by SmithKline Beckman Corp <SKB>. Other drugs in Searle's pipeline include tissue plasminogen activator (TPA), made by a different process than Genentech's <GENE> TPA, expected to be approved for marketing this year.  
STATUS GAME CORP <STGM> 3RD QTR FEB 28 NET. Oper shr six cts vs one ct Oper net 194,109 vs 28,751 Revs 2,731,688 vs 347,134 Avg shrs 3,360,527 vs 2,295,359 Nine mths Oper shr 11 cts vs five cts Oper net 356,571 vs 111,545 Revs 5,923,907 vs 1,491,852 Avg shrs 3,296,982 vs 2,289,762 NOTE: Share adjusted for 10 pct stock dividend in December 1986. Prior year net excludes tax credits of 5,775 dlrs in quarter and 17,325 dlrs in nine mths. Net excludes discontinued amusement game operations gains 144,095 dlrs vs 70,194 dlrs in quarter and loss 2,952,814 dlrs vs gain 196,872 dlrs in nine mths.  
UNIVERSAL FOODS CORP <UFC> VOTES DIVIDEND. Qtly div 20 cts vs 20 cts prior qtr Pay 6 May Record 21 April  
BETZ LABORATORIES INC <BETZ> SETS QUARTERLY. Qtly div 35 cts vs 35 cts prior Pay May 14 Record April 30  
NORTHWESTERN NATIONAL LIFE <NWNL> UPS PAYOUT. Qtly div 24 cts vs 21-1/2 cts prior Pay May 15 Record April 24 NOTE: Northwestern National Life Insurance Co.  
FIRST FEDERAL OF MICHIGAN <FFOM> 1ST QTR NET. Shr 3.33 dlrs vs 3.39 dlrs Net 37,069,000 vs 36,902,000 Avg shrs 10.95 mln vs 10.05 mln  
FAB INDUSTRIES INC <FIT> 1ST QTR FEB 28 NET. Shr 69 cts vs 67 cts Net 2,488,000 vs 2,435,000 Revs 27.6 mln vs 26.5 mln  
NORTHERN TRUST CORP <NTRS> 1ST QTR NET. Shr 87 cts vs 73 cts Net 14.7 mln vs 11.7 mln Assets 8.38 billion vs 7.43 billion Loans 3.91 billion vs 3.40 billion Deposits 5.60 billion vs 5.08 billion  
HOME SAVINGS BANK <HMSB> 1ST QTR NET. Shr 51 cts vs not given Net 6,089,000 vs 7,310,000 NOTE: Company went public in November 1986. Net includes loan loss provisions of 75,000 dlrs vs 30,000 dlrs and gains on sale of securities of 756,000 dlrs vs 2,468,000 dlrs pretax. 1986 net includes tax credit 1,022,000 dlrs. 1987 net includes 2,400,000 dlr gain from tax credit resulting in reduction of goodwill.  
AMOSKEAG BANK SHARES INC <AMKG> 1ST QTR NET. Shr 70 cts vs 67 cts Net 6,416,000 vs 6,057,000 NOTE: Net includes pretax securities sales gains of 5,900,000 dlrs vs 5,900,000 dlrs.  
MSR EXPLORATION LTD <MSR> YEAR LOSS. Shr loss five cts vs profit 10 cts Net loss 381,391 vs profit 736,974 Revs 6,161,391 vs 9,241,882 NOTE: Canadian dollars. Proved oil reserves at year-end 3.3 mln barrels, up 39 pct from a year earlier, and natural gas reserves 4.7 billion cubic feet, off nine pct.  
SOUTHMARK <SM> TO OFFER SPECIAL DIVIDEND. Southmark Corp said it will issue its shareholders a special dividend right to acquire 22 shares of American Realty Trust <ARB> for each 100 shares of Southmark they own. Each right entitles the holder to buy one share of beneficial interest of American Realty Trust at a price of 3.75 dlrs per share, Southmark said. Southmark said the offer's record date is May 1, with an ex-dividend date of April 27, adding that the it will issue the rights to shareholders on May 6 and the offer will expire on May 22. Southmark said it received the rights on April 6 as the holder of about 84 pct of American Realty Trust's outstanding shares. Holders of fewer than 455 Southmark shares who would receive rights to acquire fewer than 100 American Realty shares will be paid cash in lieu of the rights distribution, the company said. Southmark said it will compute the cash price paid based on the average closing market price of the rights on the American Stock Exchange for the first ten days the rights are traded, beginning April 6. In order to get the dividend for these rights a Southmark shareholder must own common stock on the ex-dividend date, April 27, the company said. After that, Southmark said its common stock will be traded on an ex-rights basis.  
FIRST INTERSTATE EXPECTS BRAZIL, ECUADOR LOAN ACTIONS TO CUT 1987 NET BY 15.4 MLN DLRS.  FIRST INTERSTATE EXPECTS BRAZIL, ECUADOR LOAN ACTIONS TO CUT 1987 NET BY 15.4 MLN DLRS  
MIDLANTIC CORP <MIDL> 1ST QTR NET. Shr diluted 1.18 dlrs vs 1.04 dlrs Net 45.0 mln vs 39.2 mln Assets 16.7 billion vs 15.2 billion Deposits 13.0 billion vs 12.1 billion Loans 11.9 billion vs 10.1 billion NOTE: Results restated for merger of Midlantic Banks Inc and Continental Bancorp Inc on January 30, 1987.  
COMMUNITY BANK SYSTEM INC <CBSI> 1ST QTR NET. Shr 46 cts vs 49 cts Net 1,101,551 vs 831,398 NOTE: Share adjusted for two-for-one stock split in May 1986.  
FITCHBURG GAS <FGE> RAISES QUARTERLY. Qtly div 38 cts vs 35 cts prior Pay May 15 Record May One  
NORTHERN TRUST <NTRS> NET HURT BY BRAZIL LOANS. Northern Trust Corp said its first quarter earnings were reduced by 875,000 dlrs by placing 53.2 mln dlrs of loans to Brazil and six mln dlrs in loans to Ecuador on a cash basis. Should these loans remain on nonperforming basis for the rest of 1987, net income for year will be cut by about 3.2 mln dlrs, the bank said. Earlier it posted net income for the period of 14.7 mln dlrs or 87 cts a share, up from 11.7 mln dlrs or 73 cts a share. Total nonperforming assets were 114.1 mln dlrs at March 31, up from 53.4 mln dlrs at December 31 and 79 mln dlrs at March 31, 1986 the bank said. The provision for loan losses for the first quarter was eight mln dlrs compared to 11 mln a year ago. Net loan charge offs were six mln dlrs, down from 11 mln dlrs a year ago. The reserve for loan losses was 78.1 mln dlrs, or two pct of outstanding loans, higher than the 56 mln dlrs of 1.65 pct of loans outstanding at March 31, 1986.  
<SULPETRO LTD> 1ST QTR JAN 31 LOSS. Shr not given Net loss 9,900,000 vs loss 17,300,000 Revs 14.7 mln vs 29.8 mln Note: Previous loss restated.  
WESTERN FEDERAL SAVINGS BANK <WFPR> 1ST QTR NET. Shr 74 cts vs 92 cts Net 1,300,450 vs 1,600,258 NOTE: Share adjusted for 10 pct stock dividend in July 1986. Company based in Mayaguez, Puerto Rico.  
FINAL TEST INC <FNLT> 4TH QTR LOSS. Shr loss six cts vs loss 88 cts Net loss 123,840 vs loss 1,298,377 Revs 1,333,416 vs 385,146 Year Shr profit six cts vs loss 1.47 dlrs Net profit 124,872 vs loss 2,171,011 Revs 4,618,232 vs 2,959,141  
A.O. SMITH CORP <SMC> SETS QUARTERLIES. Qtly divs Class A and B 20 cts vs 20 cts Pay May 15 Record April 30  
CENTRAL BANCORP INC <CBAN> 1ST QTR NET. Shr 1.02 dlrs vs 78 cts Net 14.4 mln vs 11.0 mln NOTE: 1987 net includes gain 2,222,000 dlrs from termination of pension plan. Results restated for pooled acquisitions and share adjusted for stock dividends.  
VLSI TECHNOLOGY INC <VLSI> 1ST QTR NET. Shr seven cts vs six cts Net 1,612,000 vs 1,406,000 Revs 38.2 mln vs 34.3 mln Avg shrs 23,742,000 vs 22,945,000  
SILICON SYSTEMS INC <SLCN> 2ND QTR MARCH 28. Shr profit five cts vs profit two cts Net profit 325,000 vs profit 105,000 Revs 19.5 mln vs 16.1 mln Six Mths Shr profit nine cts vs loss 35 cts Net profit 627,000 vs loss 2,280,000 Revs 36.9 mln vs 27.4 mln  
SHAWMUT CORP <SHAS> 1ST QTR NET. Shr 1.32 dlrs vs 1.26 dlrs Net 21.2 mln vs 17.4 mln Avg shrs 16.1 mln vs 13.8 mln Assets 10.0 billion vs 8.4 billion Deposits 7.2 billion vs 6.1 billion Loans 6.7 billion up 26 pct NOTE: Results restated for pooled acquisitions of Shawmut Home Bank and Fidelity Trust Co and include First Gibraltar Mortgage Corp from December 30, 1986 purchase. Loan loss provision 8,800,000 dlrs vs 6,300,000 dlrs.  
MINNTECH <MNTX> SEES FIRST QUARTER LOSS. Minntech Corp said it expects to report loss for its fiscal 1988 first quarter to end June 30, due to start-up costs related to a new membrane oxygenator and water filtration products. However, revenues and earnings should consistently increase throughout the remainder of the year, President Louis Cosentino told analysts.  
REPUBLIC SAVINGS AND LOAN <RSLA> 3RD QTR NET. Shr 89 cts vs not available Net 1,163,000 vs 466,000 Nine Mths Net 3,696,000 vs 1,624,000 NOTE: Company converted to stock ownership effective August 1986. Periods end March 31, 1987 and 1986 respectively.  
SOUTHMARK <SM> TO ISSUE AMERICAN REALTY RIGHTS. Southmark Corp said shareholders will be issued, as a special dividend, rights to acquire 22 shares of American Realty Trust <ARB> for each 100 shares of Southmark owned. The record date for Southmark shareholders to receive these rights will be May one with an ex-dividend date of April 27. Southmark received these rights on April six, as the holder of about 84 pct of American Realty Trust's outstanding shares.  
SLATER ELECTRIC INC <SLAT> 1ST QTR FEB 28 NET. Shr four cts vs 10 cts Net 31,000 vs 82,000 Sales 10.9 mln vs 9,760,000  
SOUTH JERSEY INDUSTRIES INC <SJI> 1ST QTR NET. Oper shr 1.64 dlrs vs 1.50 dlrs Oper net 6,200,000 vs 5,600,000 Revs not given 12 mths Oper shr 2.76 dlrs vs 2.58 dlrs Oper net 10.4 mln vs 9,600,000 NOTE: Net income including discontinued operation and, in both 1986 periods, 1,500,000 dlr gain from change in accounting for which results restated, 6,200,000 dlrs vs 7,200,000 dlrs in quarter and 10.6 mln dlrs vs 11.6 mln dlrs.  
CITY NATIONAL CORP <CTYN> 1ST QTR NET. Shr 56 cts vs 35 cts Net 10,271,000 vs 6,425,000 Loans 1.44 billion vs 1.20 billion Deposits 2.36 billion vs 1.96 billion Assets 2.96 billion vs 2.55 billion  
ALLIED BANKSHARES INC <ABGA> 1ST QTR NET. Shr 50 cts vs 26 cts Net 1,316,000 vs 656,000 NOTE: qtr 1987 includes tax gain 500,000 dlrs, or 19 cts per share.  
FIRST BANK SYSTEM INC <FBS> 1ST QTR NET. Shr 95 cts vs 80 cts Net 57.4 mln vs 46.6 mln Assets 28.39 billion vs 25.87 billion Loans 13.99 billion vs 14.35 billion  
CENTERRE BANCORP <CTBC> 1ST QTR NET. Shr 94 cts vs 1.02 dlrs Net 7,255,000 vs 7,856,000 Loans 2.88 billion vs 2.94 billion Deposits 4.05 billion vs 3.73 billion Assets 5.43 billion vs 5.14 billion  
SEA GALLEY STORES INC <SEAG> 1ST QTR NET. Oper shr four cts vs one ct Oper net 108,000 vs 30,000 Revs 12.8 mln vs 14.8 mln Note: Current qtr figures exclude operating loss carryforward gain of 57,000 dlrs, or two cts per share vs gain of 21,000 dlrs, or one ct per share.  
FIRST BANK <FBS> SEES LOSS ON BRAZILIAN LOANS. First Bank Systems Inc, in reporting higher first quarter net, said that if interest is not paid on the 140 mln dlrs in Brazilian loans and nine mln dlrs in Ecuadorian loans for the rest of 1987, its profits for the entire year will be cut by 6.9 mln dlrs. The banking firm said the non-performing status of these loans cut first quarter net by 1.7 mln dlrs. Earlier it reported first quarter profits of 57.4 mln dlrs or 95 cts a share, up from 46.6 mln dlrs or 80 cts a share in the year-ago period. Nonaccrual loans, restructured loans and other real estate were 637 mln dlrs, or 2.24 pct of total assets, compared to 514 mln dlrs or 1.84 pct of assets at the end of 1986 and 636.1 mln, or 2.46 pct of assets at March 31, 1986. The provision for loan losses in the quarter was 35 mln dlrs, compared to 152.1 mln in the first quarter 1986, when there was a special addition to the reserve of 100 mln dlrs. Net charge offs were 34.7 mln, compared to 41.1 mln dlrs a year earlier. REUTER^M  
VORNADO INC <VNO> 4TH QTR JAN 31 NET. Oper shr 1.64 dlrs vs 84 cts Oper net 4,583,000 vs 2,869,000 Revs 20.1 mln vs 19.0 mln Avg shrs 2,791,639 vs 3,432,746 Year Oper shr 4.46 dlrs vs 3.20 dlrs Oper net 14.1 mln vs 10.9 mln Revs 74.6 mln vs 68.0 mln Avg shrs 3,154,665 vs 3,425,187 NOTE: Operating net excludes gains of nothing vs 2,444,000 dlrs, or 72 cts a share, in quarter and 1,890,000 dlrs, or 60 cts a share, vs 9,3267,000 dlrs, or 2.72 dlrs a share, in year from tax loss carryforwards  
FIRST UNION CORP FIRST QTR SHR 71 CTS VS 61 CTS.  FIRST UNION CORP FIRST QTR SHR 71 CTS VS 61 CTS  
STOP AND SHOP COS IN 2-FOR-1 SPLIT, HIKES DIVIDEND.  STOP AND SHOP COS IN 2-FOR-1 SPLIT, HIKES DIVIDEND  
STOP AND SHOP COS <SHP> IN TWO-FOR-ONE SPLIT. The Stop and Shop Cos Inc said its board voted a two-for-one stock split payable July One, to stockholders of record May 29. It also said it was raising its quarterly cash dividend 16 pct to 32 cts per share from 27.5 cts per share prior. As a result of the split, the number of outstanding shares will increase to 28 mln from 14 mln, the company said. The dividend is payable July One to shareholders of record May 29, it said.  
AUDIO/VIDEO AFFILIATES <AVA> 4TH QTR JAN 31 NET. Shr 17 cts vs 28 cts Net 2,668,000 vs 3,655,000 Revs 93.9 mln vs 83.8 mln Avg shrs 15.7 mln vs 13.2 mln 12 mths Shr 48 cts vs 58 cts Net 7,510,000 vs 7,482,000 Revs 228.8 mln vs 181.9 mln Avg shrs 15.7 mln vs 12.9 mln NOTE: full name of company is audio/video affiliates Inc.  
FIRST UNION CORP <FUNC> 1ST QTR NET. Shr 71 cts vs 61 cts Net 78.5 mln vs 64.6 mln NOTE: Current qtr includes gain of seven cts/shr from sale of securities. Year-ago restated.  
FINANCIAL NEWS NETWORK INC <FNNI> 2ND QTR NET. Qtr ended February 28 Shr six cts vs three cts Net 765,138 vs 311,388 Rev 8.3 mln vs 3.7 mln Avg shares 12,272,265 vs 11,377,491 Six months Shr 17 cts vs five cts Net 2,073,057 vs 515,229 Rev 15.0 mln vs 7.4 mln Avg shares 12,295,934 vs 11,200,000  
FIRST COLONIAL BANKSHARES CORP <FCOLA> 1ST QTR. Shr 41 cts vs 35 cts Net 2,362,000 vs 1,613,000 Avg shrs 5,567,300 vs 4,070,700  
UNIVERSAL HEALTH REALTY <UHT> 1ST QTR NET. Shr 26 cts vs nil Net 2,244,000 vs nil Rev 3.4 mln vs nil NOTE: Company's full name is Universal Health Realty Income Trust. Quarter is company's first full quarter of earnings.  
FROST AND SULLIVAN INC <FRSL> INCREASES PAYOUT. Semi-annual div seven cts vs six cts prior Pay June One Record May One .  
RAI RESEARCH CORP <RAC> 3RD QTR FEB 28. SHr one cts vs 14 cts Net 17,806 vs 328,290 Revs 1.3 mln vs 2.2 mln Nine months Shr 27 cts vs 26 cts Net 640,156 vs 622,251 Revs 5.6 mln vs 5.6 mln NOTE:1986 net includes loss of 49,040 in nine months from discontinued and gain of 15,598 dlrs in 3rd qtr.  
JAMES RIVER CORP <JR> SETS REGULAR PAYOUT. Qtrly div 10 cts vs 10 cts prior Pay April 30 Record April 21  
THREE D DEPARTMENTS INC <TDD> SETS PAYOUT. Class A qtly div 2-1/2 cts vs 2-1/2 cts prior Class B qtly div 1-1/2 cts vs 1-1/2 cts prior Pay May 8 Record April 24  
ADAMS EXPRESS CO <ADX> MARCH 31 ASSETS. Shr 22.50 dlrs vs 21.74 dlrs Assets 546.9 mln vs 485.2 mln Shrs out 24.3 mln vs 22.3 mln NOTE: lastest assets after capital gain distributions of 28 cts a share in February 1987 and 2.55 dlrs a share in December 1986  
PETROLEUM AND RESOURCES CORP <PEO> MARCH 31. Shr 31.36 dlrs vs 25.23 dlrs Assets 286.5 mln vs 253.0 mln Shrs out 9,138,526 vs 8,839,695 NOTE: latest assets after capital gain distributions of 50 cts a share in February 1987 and 83 cts a share in December 1986, and with 29,955,000 stated value 1.676 dlr convertible preferred stock outstanding.  
SONY CHAIRMAN FORECASTS LOWER PROFITS THIS YEAR. Sony Corp <SNE.T> chairman Akio Morita said Sony's profits would be sharply down in 1987 as a result of the dollar's decline. Sony Corp posted net consolidated income of 41.89 billion yen (290 million dollars) in 1986, 42.6 pct down on 1985's 73.02 billion yen (506 million dollars). But Morita added that Japan would benefit from the strong yen by saving on its energy import bill and he expected profits to recover from 1988 onwards. He was speaking to reporters at a sony factory opening here.  
JAMES RIVER CORP <JR> SETS REGULAR DIVIDEND. Qtly div 10 cts vs 10 cts prior Pay April 30 Record April 21  
NEWHALL INVESTMENT PROPERTIES <NIP> PAYOUT. Shr 10 cts vs 10 cts prior qtr Pay June one Record April 24  
NEWHALL RESOURCES <NR> QTLY DISTRIBUTION. Shr 15 cts vs 15 cts prior qtr Pay June one Record April 24  
WESTINGHOUSE ELECTRIC CORP 1ST QTR SHR 1.05 DLRS VS 88 CTS.  WESTINGHOUSE ELECTRIC CORP 1ST QTR SHR 1.05 DLRS VS 88 CTS  
WESTINGHOUSE ELECTRIC CORP <WX> 1ST QTR NET. Shr primary 1.05 dlrs vs 88 cts Shr dilulted 1.05 dlrs vs 86 cts Net 151.6 mln vs 135.2 mln Revs 2.32 billion vs 2.55 billion Avg shrs 144.6 mln vs 154.5 mln  
NEWHALL INVESTMENT <NIP> SETS SPECIAL PAYOUT. Newhall Investment Properties said it declared a special distribution of 50 cts per share, payable June one, to unitholders of record April 24.  
PATIENT <PTI> CONSIDERING DEBT RESTRUCTURING. Patient Technology Inc said it retained an investment banking firm to consider alternatives in restructuring its long-term debt, including a possible exchange offer for 20 mln dlrs of outstanding convertible debentures. On April one, it began consolidating sales, marketing and manufacturing operations. The consolidation is expected to be complete by June one and the company said it is now focusing on restructuring its balance sheet. The company said the first quarter will be adversely affected by the consolidation effort. For the year ago first quarter, the company reported a profit of 100,000 dlrs on 7.3 mln dlrs. The company further said that the second quarter will be transitional period and that earnings growth will resume in the second half of 1987. For the year ended December 31, 1986, Patient reported a net loss of 1.4 mln dlrs on sales of 29.8 mln dlrs, due to write-offs from discontinued operations and a temporary backlog of orders.  
BANKS OF MID-AMERICA INC <BOMA> 1ST QTR NET. Shr loss 18 cts vs loss 89 cts Net profit 161,000 vs loss 5,938,000 Assets 3.43 billion vs 3.46 billion Deposits 2.68 billion vs 2.67 billion Loans 1.45 billion vs 1.64 billion Note: Shr data after payment of preferred dividends.  
WESTINGHOUSE ELECTRIC <WX> OPTIMISTIC FOR YEAR. Westinghouse Electric Corp chairman Douglas Danforth said he was encouraged by first quarter results for fiscal 1987, and said the company was positioned to capitalize on the economy's modest growth for the rest of the year. "I am encouraged by the continuing improvement in earnings," Danworth said. "The first quarter met our expectations." Westinghouse recorded net income for the first quarter of 151.6 mln dlrs, or 1.05 dlrs per share, on revenues of 2.32 billion dlrs. Danworth attributed the results to an increase in the operating profit in the energy and advanced technology, industries and commerical segments.  
BSD BANCORP <BSD> 1ST QTR NET. Shr seven cts vs five cts Net 240,000 vs 136,000 Loans 264.5 mln vs 251.7 mln Deposits 319.7 mln vs 306.8 mln Assets 348.6 mln vs 334.6 mln  
GATEWAY COMMUNICATIONS INC <GWAY> 1ST QTR NET. Shr 14 cts vs six cts Net 653,561 vs 251,955 Revs 4,143,056 vs 2,199,238  
BAKER COMMUNICATIONS INC <BAKR> YEAR LOSS. Shr loss 42 cts vs loss 56 cts Net loss 596,354 vs loss 795,009 Revs 3,818,258 vs 2,070,772  
EASTOVER CORP <EASTS> 4TH QTR NET. Shr 39 cts vs 28 cts Net 491,000 vs 356,000 Revs 890,000 vs 720,000 Year Shr 1.54 dlrs vs 2.49 dlrs Net 1,952,00 vs 3,165,000 Rev 3,463,000 vs 3,005,000 Note: Net includes state tax credit of 400,000 for 1986 qtr and year. Net also includes gains from sale of real estate of 3,000 vs 83,000 for qtr and 563,000 vs 1,317,000 for year.  
BEVERLY ENTERPRISES <BEV> SETS REGULAR DIVIDEND. Qtly div five cts vs five cts prior Pay July 13 Record June 30  
TRUSTCORP INC <TTCO> 1ST QTR NET. Shr 67 cts vs 62 cts Net 9,160,000 vs 7,722,000 Assets 4.5 billion vs four billion Note: Shr and net data are before accounting change announced in 1986, which added 30 cts a share to year-ago 1st qtr results.  
NAPA VALLEY BANCORP <NVBC> 1ST QTR NET. Shr 20 cts vs 25 cts Net 487,000 vs 435,000  
INTERNATIONAL POWER MACHINES <PWR> 4TH QTR LOSS. Shr loss 21 cts vs loss 28 cts Net loss 817,000 vs loss 1,058,000 Revs 5,627,000 vs 7,397,000 Year Shr loss 75 cts vs loss 1.36 dlrs Net loss 2,872,000 vs loss 5,200,000 Revs 23.3 mln vs 21.1 mln Note: 1985 net includes 1,255,000 adjustment in inventory valuations and 486,000 in cost-reduction expenses. Full name is International Power Machines Corp.  
RAI RESEARCH CORP <RAC> 3RD QTR FEB 28 NET. Oper shr one ct vs 13 cts Oper net 17,806 vs 312,692 Revs 1,318,165 vs 2,239,349 Nine mths Oper shr 27 cts cs 28 cts Oper net 640,156 vs 671,291 Revs 5,612,818 vs 5,632,044 Note: Oper excludes gain from discontinued operations of 15,598 for year-ago qtr and loss from discontinued operations of 49,040 for year-ago nine mths.  
MOORE <MCL> SEES SUBSTANTIAL 1987 PROFIT GAIN. Moore Corp Ltd expects 1987 profits from continuing operations will exceed 1986 results and recover to 1985 levels when the company earned 152 mln U.S. dlrs or 1.70 dlrs a share, president M. Keith Goodrich said. "We'll have a substantial increase in earnings from continuing operations," he told reporters after the annual meeting. He said he expected profits would recover last year's lost ground and reach 1985 results. In 1986, profits from continuing operations slumped to 139.5 mln dlrs or 1.54 dlrs a share. The total excluded losses of 30 mln dlrs on discontinued operations. Goodrich said Moore is still actively looking for acquisitions related to its core areas of business forms manufacturing or handling. "We could do a large acquisition," he said when asked if the company could raise as much as one billion dlrs for this purpose. Chairman Judson Sinclair, answering a shareholder's question, told the annual meeting that a special resolution passed by shareholders to create a new class of preferred shares would allow Moore to move quickly if it decided to pursue an acquisition. "If we were to make a major acquisition ... it means we can move with a certain expediency," Sinclair said. Asked if the resolution was designed to give Moore protection from a possible hostile takeover, Sinclair said only, "I know of no threat to the corporation at this time."  
DELMED INC <DMD> YEAR LOSS. Oper shr loss 30 cts vs loss 1.27 dlrs Oper net loss 8,648,000 vs loss 25.6 mln Revs 27.4 mln vs 33.3 mln Avg shrs 29.1 mln vs 20.1 mln Note: Oper excludes loss on provision for discontinued operations of 971,000 vs 12.2 mln and loss from conversion of debt 587,000 vs gain of 1,734,000. 1985 oper excludes loss from pension plan liquidation of 631,000 and loss from discontinued operations of 1,015,000.  
<AMERICAN EAGLE PETROLEUMS LTD> YEAR LOSS. Shr loss 10 cts vs profit 17 cts Net loss 1,546,000 vs profit 4,078,000 Revs 22.6 mln vs 38.9 mln  
VALEX PETROLEUM INC <VALP> YEAR DEC 31. Shr loss six cts vs loss 84 cts Net loss 219,632 vs loss 16.3 mln Revs 1.4 mln vs 2.8 mln NOTE:1985 net includes 15.5 mln dlrs of writedowns and tax benefit of 51,294.  
MOBIL AUSTRALIA REPORTS 38.6 MLN DLR 1986 LOSS. Wholly-owned Mobil Corp <MOB> unit, <Mobil Oil Australia Ltd>, reported a 38.63 mln dlr net loss in 1986, a turnaround from its 37.25 mln profit in 1985. The loss reflected a combination of strikes plus scheduled and unscheduled refinery shutdowns for maintenance and inventory losses caused by government controls on both crude and product prices, Mobil said in a statement. However, equity-accounting of associates' profits reduced the loss to 24 mln dlrs against a 37 mln profit in 1985. Mobil said it was confident 1987 would see a return to profit as it built further on its 1985 company restructuring.  
TEXACO SEES BUSINESS LITTLE HIT BY BANKRUPTCY MOVE. Texaco Inc <TX> said its decision to file for protection under Chapter 11 of the U.S. Bankruptcy code will not affect the majority of its businesses. It said its subsidiaries, which account for 96 pct of its 32.6 billion dlrs in revenues and 79 pct of its net property, plant and equipment, were free of the action. Only parent holding company, Texaco Inc, and operating subsidiaries, Texaco Capital Inc and Texaco Capital N.V, are affected, it said. But the company said it was likely to suspend its 75 cents per share quarterly common stock dividend and halt repayments on debts of some 6.8 billion dlrs. Texaco said it filed for Chaper 11 because suppliers were demanding cash payments and banks were withholding loans as a result of a legal dispute with Pennzoil Co <PZL>. Texaco is fighting a Texas law requiring it to post a bond of more than 10 billion dlrs before it can appeal a 1985 judgment that ruled it illegally interfered with Pennzoil's 1984 acquisition of Getty Petroleum Corp <GTY>. The bond almost matches the damages awarded against Texaco. Should Texaco fail to place the bond, Pennzoil could begin to attach its assets to secure the judgment. Last Monday, the Supreme Court overturned a decision to cut Texaco's bond to one billion dlrs, and sent the issue back to the Texas courts. Analysts said the bankruptcy filing effectively froze all Texaco's obligations while it continued to appeal the merits of the Pennzoil lawsuit. "Attempts last week to win a compromise on both the bond issue and the larger dispute failed," James Kinnear, Texaco's president and chief executive officer, told reporters. Kinnear said Pennzoil's disclosure in court papers on Friday that it wanted to extend the bond issue hearing until the end of April, pushed Texaco further towards Chapter 11. Pennzoil had asked Texaco to post a 5.6 billion dlr cash bond and to reduce its dividend to not more than 50 pct of earnings. Pennzoil also wanted assurances that Texaco would not sell any assets, Kinnear said. Texaco offered to put up one billion dlrs in a letter of credit and agreed not to let the value of its assets fall under 11.1 billion dlrs, he added. Joseph Jamail, a Houston attorney for Pennzoil, said the company had made its latest settlement offer to Texaco on Saturday and was taken by surprise when Texaco filed for bankruptcy. He declined to reveal the amount of the proposal, citing a confidentiality agreement between the two companies. "Texaco told us they would get back to us but instead they chose to go to bankruptcy court," Jamail said. Attorneys for Pennzoil said they believed the company would prevail in court appeals, adding that Texaco's assets were ample ultimately to pay the Pennzoil judgment in full.  
ANZ BANK SETS ONE-FOR-TWO BONUS ISSUE. Australia and New Zealand Banking Group Ltd <ANZA.S> said it will make a one-for-two bonus issue from its asset revaluation reserve to shareholders registered June 2. The proposed bonus and an increase in authorised capital to one billion one-dlr par shares from 600 mln will be put to shareholders for approval at an extraordinary general meeting on May 26, the ANZ said in a statement. The issue will absorb about 230 mln dlrs of the 260.9 mln standing in the asset revaluation reserve, it said. The bank said that by lowering the dividend rate it expects to maintain the value of dividend payout on the enlarged capital at about the level of its last full year ended September 30. The group paid 31 cents a share and 133.1 mln dlrs in all for that year. Shareholders will also be asked to approve changes in the bank's articles of association to allow it to offer shares in lieu of the interim dividend at a discount of five pct to the market price. The group is the latest to announce a tax-free bonus issue ahead of dividend imputation, effective July 1.  
MORGAN CRUCIBLE SAYS PROSPECTS ARE ENCOURAGING. Morgan Crucible Co Plc <MGCR.L> said the prospects for 1987 were encouraging, with orders and sales significantly up on last year in all divisions. It said there were good opportunities for growth in both existing and recently acquired businesses as well as for growth by acquisition in related areas. It earlier announced a 6.1 mln stg rise in pre-tax profit to 24.8 mln stg for the year to December 28. Turnover rose to 242.1 mln from 211.5 mln. Most of its companies performed well despite a slowdown in the U.S., U.K. And Australian economies in the first half. Currency fluctuations reduced pretax profit by around one mln stg, it noted. Morgan said although profits in the electronics sector improved to 1.0 mln stg from 100,000 stg previously, results were nonetheless disappointing. Sales were lower than expected, due mainly to delayed defence orders and cancellations. However, it said it had taken the necessary remedial action, obtained new business and was now proceeding with the delivery of major delayed orders. Morgan shares firmed two pence to 318p at 0905 GMT from 316p at Friday's close.  
MORGAN CRUCIBLE PRETAX PROFIT RISES 6.1 MLN STG. Year to December 28, 1986 Shr 20.1p vs 17.6p Div 5.0p vs 4.6p making 9.2p vs 8.5p Turnover 242.1 mln stg vs 211.5 mln Pretax profit 24.8 mln vs 18.7 mln Tax 6.7 mln vs 5.8 mln Operating profit 28.3 mln vs 21.3 mln Investment income 1.0 mln vs 0.7 mln Net finance charges 4.5 mln vs 3.3 mln Company full name is Morgan Crucible Co Plc <MGCR.L> Minorities and provisions for preference dividends 0.7 mln vs 1.2 mln Extraordinary debit - 0.9 mln vs 1.3 mln credit Operating profit includes - Carbon 8.3 mln vs 7.0 mln Technical ceramics 7.0 mln vs 5.6 mln Thermal ceramics 7.6 mln vs 4.6 mln Speciality chemicals 4.4 mln vs 4.0 mln Electronics 1.0 mln vs 0.1 mln REUTER^M  
CREDIT COMMERCIAL DE FRANCE SPLITS SHARES. French commercial bank Credit Commercial de France has split each of its shares into four to increase the number of shares on offer when it is privatised at the end of this month, a company official said. He told Reuters a general assembly had passed a proposal splitting 10.33 mln shares of 100 francs nominal into around 41.32 mln shares of 25 francs nominal. Market sources have put the total value of CCF's selloff at between four and five billion francs. The bank said the share sale price was likely to be announced on April 24, before the launch of a public flotation offer on April 27.  
Glaxo pre-tax profit 376 mln stg vs 260 mln in six months to end-December.  Glaxo pre-tax profit 376 mln stg vs 260 mln in six months to end-December  
GLAXO PROFITS UP SHARPLY, DIVIDEND RAISED. Six months to end-December Shr 32.6p vs 22.3p Div 5.0p vs 4.0p Pre-tax profit 376 mln stg vs 260 mln Turnover 883 mln vs 686 mln Tax 133 mln vs 94 mln Note - company full name is Glaxo Holdings Plc <GLXO.L>. Trading profit 338 mln vs 233 mln Share of profits of associates 14 mln vs seven mln Investment income less interest payable 24 mln vs 20 mln Profit after tax 243 mln vs 166 mln Minority interests two mln vs one mln Extraordianry credit eight mln vs nil Turnover includes - Continuing activities 875 mln vs 647 mln Discontinued activities eight mln vs 39 mln U.K. 111 mln vs 91 mln Europe 299 mln vs 218 mln North America 334 mln vs 229 mln Central and South America 21 mln vs 20 mln Africa and Middle East 29 mln vs 23 mln South East Asia and Far East 57 mln vs 47 mln Australasia 24 mln vs 19 mln Anti-peptic ulcerants 414 mln vs 285 mln Systemic antibiotics 112 mln vs 82 mln Respiratory system 183 mln vs 141 mln  
DEPOSIT GUARANTY CORP <DEPS> 1ST QTR NET. Shr 1.11 dlrs vs 1.10 dlrs Shr diluted 1.03 dlrs vs 1.02 dlrs Net 8,186,000 vs 8,114,000  
KING WORLD PRODUCTIONS INC <KWP> 2ND QTR FEB 28. Shr 21 cts vs eight cts Net 6,597,000 vs 2,602,000 Revs 56.4 mln vs 23.2 mln 1st half Shr 57 cts vs 32 cts Net 17.6 mln vs 9,810,000 Revs 137.7 mln vs 76.0 mln  
BLUE CIRCLE PROFITS, DIVIDEND RISE. Year to end-December Shr 76.7p vs 67.7p Div 17p making 23p vs 21p Pretax profit 127.0 mln stg vs 116.9 mln Turnover 1.10 billion vs 947.2 mln Tax 25.0 mln vs 26.3 mln Note - company full name is Blue Circle Industries Plc <BCIL.L>. Company said it proposes one-for-one capitalisation issue Gross profit 390.9 mln vs 321.6 mln Distribution costs 215.6 mln vs 177.6 mln Administrative expenses 65.1 mln vs 58.9 mln Other operating income 5.3 mln vs 11.0 mln Share of profits of related companies 50.0 mln vs 58.1 mln Operating profit 165.5 mln vs 154.2 mln Net interest payable 33.6 mln vs 32.2 mln Exceptional items 4.9 mln debit vs 5.1 mln debit Minorities 3.4 mln vs 6.9 mln Extraordinary items after tax 39.5 mln vs 4.2 mln Pretax profit includes - U.K. 37.7 mln vs 20.5 mln U.S. 27.5 mln vs 22.8 mln Mexico 15.0 mln vs 20.7 mln Australasia 15.7 mln vs 13.2 mln Africa 12.0 mln vs 12.6 mln  
COMPACT VIDEO INC <CVSI.O> YEAR LOSS. Shr loss 67 cts vs loss two cts Net loss 3,721,000 vs loss 107,000 Revs 155.7 mln vs 24.2 mln NOTE: Results for 12 months ended Dec 31, 1986, and eight months ended Dec 31 1985. Because of the acquisition of Brooks Drug in September 1986 and the company's change of fiscal year, prior-year results are not comparable, Compact Video explained.  
NEWORLD BANK FOR SAVINGS <NWOR> 1ST QTR NET. Oper shr 45 cts vs 26 cts Oper net 2,258,000 vs 1,166,000 NOTE: 1986 net excludes 842,000 dlr tax credit.  
MERRILL LYNCH FIRST QTR SHR ONE DLR VS 85 CTS.  MERRILL LYNCH FIRST QTR SHR ONE DLR VS 85 CTS  
MERRILL LYNCH AND CO <MER> 1ST QTR NET. Shr primary one dlr vs 85 cts Shr diluted 97 cts vs 81 cts Net 108.6 mln vs 86.8 mln Rev 2.70 billion vs 2.17 billion  
HOME FEDERAL UPPER EAST TENNESSEE <HFET> 1ST QTR. Shr 47 cts vs not given Net 2,100,000 vs 1,277,000 NOTE: Company went public in fourth quarter of 1986. Home Federal Savings and Loan Association of Upper East Tennessee.  
FAMILY HEALTH SYSTEMS INC <FHSY> 2ND QTR FEB 28. Shr profit one ct vs nil Net profit 74,000 vs profit 10,000 Revs 925,000 vs 112,000 Avg shrs 10 mln vs nine mln Six mths Shr loss nil vs loss one ct Net loss 16,000 vs loss 90,000 Revs 1,855,000 vs 333,000  
INTERNATIONAL BUSINESS MACHINES CORP <IBM> NET. 1st qtr Shr 1.30 dlrs vs 1.65 dlrs Net 785 mln vs 1.02 billion Gross income 10.68 billion vs 10.13 billion Avg shrs 604.6 mln vs 615.6 mln NOTE: Pretax net 1.34 billion vs 1.83 billion. Sales 6.50 billion vs 6.10 billion, maintenance gross income 1.95 billion vs 1.77 billion, program products gross income 1.40 billion vs 1.15 billion and rentals and other services 825 mln vs 1.10 billion.  
GOODYEAR <GT> PREDICTS FIRST QUARTER NET. Goodyear Tire and Rubber Co said it expects to report earnings from continuing operations of over one dlr per share on 71.3 mln average shares outstanding. In last year's first quarter the company lost 60.0 mln dlrs or 55 cts per share on 108.4 mln shares outstanding, after a 110.8 mln dlr writedown of oil reserves of its Celeron Corp unit. Goodyear said it will report first quarter results April 27. Goodyear chairman Robert E. Mercer also told the annual meeting that unless there is a major downturn in the economy, it expects to work its debt down to normal levels in three years through its restructuring and cash flow from improved margins. The company set up its restructuring program to fend off a hostile takeover attempt by Sir James Goldsmith.  As part of the restructuring, Goodyear executed a major stock buyback program that resulted in an increase in its debt.  
NCR CORP 1ST QTR SHR 65 CTS VS 51 CTS.  NCR CORP 1ST QTR SHR 65 CTS VS 51 CTS  
FIRST MARATHON <FMS.A.TO> PLANS STOCK SPLIT. First Marathon Inc said it planned a two-for-one stock split, to be effective on shareholders' approval at the June 4 annual meeting. The financial services company said it also completed the previously reported 29.6 mln dlr private placement of 1.5 mln non-voting preferred shares convertible one-for-one into non-voting class A shares.  
U.S. BANCORP <USBC> 1ST QTR NET. Shr 66 cts vs 57 cts Net 20.0 mln vs 17.1 mln Avg shrs 30.3 mln vs 30.0 mln  
IBM <IBM> HAS HIGHER SHIPMENTS, COSTS IN QTR. International Business Machines Corp said shipments and revenues were higher in the first quarter, but net earnings fell 22.8 pct in part due to higher expenses. IBM said net income fell to 785 mln dlrs or 1.30 dlrs a share from 1.02 billion dlrs or 1.65 dlrs on about 1.8 pct fewer shares outstanding. While total sales and income rose 5.5 pct to 10.68 billion dlrs from 10.13 billion dlrs, costs and expenses rose 12.1 pct to 9.61 billion dlrs from 8.57 billion in the quarter, the computer maker said. The company said it continues to take actions to make it more competitive, including cost and expense reduction measures. "Although the worldwide economic situation remains unsettled, there are some encouraging signs in our business," IBM said in a statement. "In addition to the increase in first quarter shipments, we have announced new offerings in our large processor and personal computing product lines," it said. "We have yet to fully benefit from our recent product announcements, retirement incentives and other resource balancing measures, and we expect these actions will have a more significant impact as 1987 progresses," the company added. It said it expects more than 12,000 U.S. employees to take advantage of the retirement incentives announced last year. Pretax earnings fell 27 pct to 1.34 billion dlrs from 1.83 billion, IBM said. Pretax margins slipped to 12.5 pct in 1987 from 18.1 pct in 1986, it said.  
LINDBERG CORP <LIND> 1ST QTR NET. Shr 15 cts vs 15 cts Net 689,561 vs 784,088 Sales 19.2 mln vs 19.8 mln Avg shrs 4.7 mln vs 5.3 mln NOTE: 1986 net includes a gain of 108,000 dlrs or two cts a share from proceeds from the sale of property.  
NCR CORP <NCR> 1ST QTR NET. Shr 65 cts vs 51 cts Net 61.5 mln vs 50.2 mln Revs 1.12 billion vs 960.8 mln Avg shrs 95.3 mln vs 99.4 mln  
GALILEO ELECTRO-OPTICS CORP <GAEO> 2ND QTR. Shr 51 cts vs 40 cts Net 1.4 mln vs 851,000 Revs 9.8 mln vs 6.5 mln Six months Shr 74 cts vs 50 cts Net 2.0 mln vs 1.1 mln Revs 17.7 mln vs 11.3 mln Avg shrs 2.7 mln vs 2.1 mln NOTE:Quarter ended March 31. 1987 six months includes charge of 115,000 dlrs due to reversal of investment tax credits.  
COOPERVISION <EYE> FORMS RECAPITALIZATION PLAN. Coopervision Inc said it is preparing a recapitalization plan, which includes a common stock repurchase program and an exchange of debt securities for common stock. The plan, along with a proposal to change its name to Cooper Cos Inc, will be submitted for shareholders' approval at the company's annual meeting on June 22. The meeting had been postponed from its original date of May 14 in order to let management review recapitalization options, it said. In addition, Coopervision said operating income in its current fiscal quarter ending April 30 is expected to show an improvement over its prior fiscal quarter's 82.5 mln dlrs and its year ago quarter. Income from continuing operations was not immediately availalbe for the prior year's second quarter in which it reported a net loss of 14.9 mln dlrs. At a Drexel Burnham Lambert Investor Conference, Coopervision chairman Parker Montgomery said, as previously announced, he will listen to any bid that makes sense for shareholders. He also said Coopervision's stock fell in 1986 due to its second quarter loss, rumors of a liquidation at 30 dlrs and 35 dlrs a share, and Ivan Boesky's subsequent sale of his position. "The stock dropped six dlrs in three days after Boesky sold his position and has never recovered," Montgomery said. The company's stock is currently trading at 19-1/4. Montgomery further told the conference, "Don't be an investor in the stock on the basis of any short term recovery in operating or net income in 1987 and 1988." "Our concentration is on maintaining or increasing market share in our core businesses this year and next, regardless of the impact to the bottom line," he said.  
REEBOK INTERNATIONAL LIMITED <RBK> 1ST QTR. Shr 72 cts vs 52 cts Net 38.6 mln vs 25 mln Revs 281.8 mln vs 174.5 mln Avg shrs 53.5 mln vs 48.2 mln NOTE: 1987 1st quarter amounts do not includes sales of AVIA Group International Inc, acquired at the end of the first quarter. 1987 1st quarter revenues include Rockport revenues of 31 mln dlrs. 1986 1st quarter amounts do not include Rockport, as Reebok acuqired that company in October 1986.  
BLOUNT INC <BLT> 4TH QTR NET. Oper shr 16 cts vs three cts Oper net 1,930,000 vs 391,000 Revs 313.9 mln vs 308.9 mln Avg shrs 11.9 mln vs 12.0 mln Year Oper shr 60 cts vs 27 cts Oper net 7,215,000 vs 3,340,000 Revs 1.23 billion vs 1.16 billion Avg shrs 11.9 mln vs 12.0 mln NOTE: Prior year net excludes gains 4,896,000 dlrs in quarter and 8,873,000 dlrs in year from termination of overfunded pension plans. Backlog 1.0 billion dlrs vs 942 mln dlrs.  
MERRY-GO-ROUND <MGRE> SETS STOCK SPLIT. Merry-Go-Round Enterprises Inc said its board declared a three-for-two stock split, payable May One to holders of record April 17.  
IRVING BANK CORP 1ST QTR SHR 1.51 DLRS VS 1.62 DLRs.  IRVING BANK CORP 1ST QTR SHR 1.51 DLRS VS 1.62 DLRs  
IRVING BANK CORP <V> 1ST QTR NET. Shr 1.51 dlr vs 1.62 dlr Net 28.6 mln vs 30.4 mln Assets 23.8 billion vs 20.9 billion Deposits 15.5 billion vs 14 billion Loans 13.8 billion vs 12 billion  
O'SULLIVAN CORP <OSL> 1ST QTR NET. Shr 28 cts vs 32 cts Net 2,823,000 vs 3,216,000 Rev 47.9 mln vs 42.9 mln NOTE: The 1986 earnings per share adjusted for a four for three stock distribution paid May 1986.  
PARK COMMUNICATIONS INC <PARC> 1ST QTR NET. Shr 15 cts vs 14 cts Net 2,028,000 vs 1,879,000 Revs 32.1 mln vs 29.5 mln  
NVHOMES <NVH> SETS SPLIT PAYMENT DATE. NVHomes LP said April 30 will be the distribution date for new units as a result of its previously-announced two-for-one split to unitholders of record April 20.  
13-APR-1987. 13-APR-1987 
CHEMICAL NEW YORK CORP 1ST QTR SHR 1.58 DLRS VS 1.93 DLRS.  CHEMICAL NEW YORK CORP 1ST QTR SHR 1.58 DLRS VS 1.93 DLRS  
<NATIONAL WESTMINSTER BANK PLC> 1ST QTR NET. Net 17.7 mln vs 15.3 mln NOTE: <National Westminster Bank PLC> subsidiary. Loan loss provision 13.8 mln vs 13.0 mln Investment securitiesd gaons 2,003,000 dlrs vs 169,000 dlrs. Figures in dollars.  
IRVING BANK <V> CITES LOANS IN EARNING DECLINE. Irving Bank Corp said the decline in its first quarter earnings to 28.6 mln dlrs from 30.4 mln dlrs in the year-ago period were due to the placement on a non-accrual basis of 215 mln dlrs and 33 mln dlrs of medium and long-term loans to borrowers in Brazil and Equador. Excluding the impact of the non-accrual loans, Irving said its first quarter net income would have rose 8.4 pct to 32.9 mln and per share amounts would have risen eight pct to 1.75 dlr. In the first quarter the bank reported earnings per share of 1.51 dlr compared to 1.62 dlr in the same period last year.  
CHEMICAL NEW YORK CORP <CHL> 1ST QTR NET. shr 1.58 dlrs vs 1.93 dlrs net 86,220,000 vs 102,629,000 avg shrs 50,831,512 vs 49,156,828 assets 61.04 billion vs 57.95 billion loans 38.76 billion vs 39.68 billion deposits 38.20 billion vs 33.14 billion return on assets 0.57 pct vs 0.71 pct return on common equity 11.47 pct vs 15.19 pct NOTE: 1987 qtr net reduced by 12 mln dlrs because 1.04 billion dlrs of Brazil loans were placed on non-accrual  
AFG INDUSTRIES INC <AFG> 1ST QTR NET. Shr primary 54 cts vs 41 cts Shr diluted 51 cts vs 38 cts Net 9,098,000 vs 5.924,000 Revs 111.7 mln vs 85.0 mln Avg shrs primary 16,889,254 vs 14,500,737  
<NEW MILFORD SAVINGS BANK> 1ST QTR NET. Shr 62 cts vs 26 cts Net 2,312,000 vs 944,000 NOTE: 1987 includes five ct shr charge from loan loss provision.  
H.F. AHMANSON AND CO <AHM> 1ST QTR NET. Shr 84 cts vs 80 cts Net 82,416,000 vs 67,819,000 Revs 703.9 mln vs 759.7 mln Avg shrs 98,369,307 vs 84,807,498 Loans 19.06 billion vs 19.51 billion Deposits 21.60 billion vs 19.86 billion Assets 27.16 billion vs 27.15 billion Note: Prior qtr per shr figure adjusted for three-for-one stock split of May 1986.  
NCR <NCR> CONTINUES TO EXPECT EARNINGS GROWTH. NCR Corp, earlier reporting higher first quarter profit, said it continues to expect that it will report record earnings and revenue for all of 1987. "Our optimism is based on our incoming order rates and the strength of our product lines," the company said. NCR Corp plans additional new product announcements this year, it said without elaborating. NCR earlier said first quarter profit increased to 61.5 mln dlrs or 65 cts share from 50.2 mln dlrs or 51 cts share in the prior year. NCR's 1986 full-year earnings rose to 336.5 mln dlrs from 315.2 mln dlrs in the prior year. NCR said the increase in first quarter profit resulted from strong revenue growth, which was particularly strong in Europe and Pacific marketing groups. Growth in U.S. revenues also improved, the company said. First quarter revenues increased to 1.12 billion dlrs from 960.8 mln dlrs in the prior year. NCR's U.S. dollar value of 1987 first quarter worldwide incoming orders posted a very substantial gain over the prior year first quarter, NCR also said without giving specific figures. Order growth was broad based across NCR's product lines, with the greatest growth coming from U.S., it said.  
GENETICS INSTITUTE INC <GENI.O> 1ST QTR LOSS. Period ended February 28 Shr loss 11 cts vs loss 11 cts Net loss 1,309,000 vs loss 937,000 Revs 5,271,000 vs 4,417,000 Avg shrs 11,690,000 vs 8,724,000  
ENTRE COMPUTER <ETRE.O> CLOSING OVERSEAS UNITS. Entre Computer Centers Inc said it is discontinuing its European and Australian operations. The company today reported a loss for the second quarter ended February 28 of 2,733,000 dlrs, after a 6,705,000 dlr pretax provision for the shutdown of the overseas units and a 2,511,000 dlr tax credit.  A year earlier it earned 911,000 dlrs. It said the overseas operations lost 400,000 dlrs in the second quarter and did not appear strong enough to provide for future growth.  
ENTRE COMPUTER CENTERS INC <ETRE> 2ND QTR LOSS. Shr loss 29 cts vs profit 10 cts Net loss 2,733,000 vs profit 911,000 Revs 21.5 mln vs 18.5 mln 1st half Shr loss 23 cts vs profit 26 cts Net loss 2,154,000 vs profit 2,445,000 Revs 37.8 mln vs 37.7 mln NOTE: Current year net both periods includes 6,705,000 dlr pretax provision for closing overseas operations and tax credits 2,511,000 dlrs in quarter and 1,977,000 dlrs in half.  
MERRILL LYNCH <MER> INVESTMENT REVENUES UP. Merrill Lynch and Co said investment banking revenues were strong in the first quarter, rising to 257.4 mln dlrs from 152.9 mln in the first quarter 1986. "We have made steady progress in a period of market activity which has been marked by unprecedented activity," William Schreyer, chairman and cheif executive officer, and Daniel Tully, president and chief operating officer, said. Earlier, the company reported first quarter net income of 108.6 mln dlrs, or one dlr per share, up from 86.8 mln dlrs, or 85 cts per share, in 1986's first quarter. Merrill Lynch said its insurance revenues made the biggest gains in the first quarter, rising to 242.3 mln dlrs in the this first quarter, from 68.3 mln dlrs in last year's first quarter.  
STANDARD MICROSYSTEMS CORP <SMSC.O> 4TH QTR NET. Feb 28 end Shr profit four cts vs loss nil Net profit 448,000 vs loss 28,000 Revs 15.1 mln vs 11.5 mln Avg shrs 11.2 mln vs 11.1 mln Year Shr profit four cts vs profit nil Net profit 459,000 vs profit 51,000 Revs 53.2 mln vs 44.5 mln Avg shrs 11.2 mln vs 11.1 mln NOTE: Net includes tax credits of 53,000 dlrs vs 1,023,000 dlrs in quarter and 48,000 dlrs vs 2,557,000 dlrs in year.  
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST <PEI>. Oper shr 39 cts vs 47 cts Oper net 2,104,462 vs 2,452,420 Revs 4,675,904 vs 4,744,248 Avg shrs 5,427,561 vs 5,139,415 1st half Oper shr 82 cts vs 93 cts Oper net 4,418,718 vs 4,609,613 Revs 9,346,483 vs 9,338,590 Avg shrs 5,427,486 vs 4,943,966 NOTE: Current year net excludes gains on sale of real estate of 470,778 dlrs in quarter and 1,533,273 dlrs in half. Period ended February 28.  
ALLWASTE INC <ALWS.O> 2ND QTR FEB 28. Shr profit four cts vs loss one cts Net profit 172,000 vs loss 180,000 Revs 4.2 mln vs 883,000 Six months Shr profit nine cts vs loss four cts Net profit 315,000 vs loss 107,000 Revs 7.4 mln vs 1.8 mln Avg shrs 4.4 mln vs 2.6 mln  
SCOTT AND STRINGFELLOW <SCOT.O> 3RD QTR MAR 31. Shr 37 cts vs 37 cts Net 687,888 vs 441,659 Revs 7.9 mln vs 6.8 mln Nine months Shr 1.12 dlrs vs 1.07 dlrs Net 1.8 mln vs 1.3 mln Revs 23.2 mln vs 19.7 mln Avg shrs 1.6 mln vs 1.2 mln NOTE:Full name is Scott and Stringfellow Financial Corp.  
FOSTER <FWC> UNIT AUDIT REVEALS DISCREPANCIES. Foster Wheeler Corp <FWC> said an audit of its Stearns Airport Equiment Co Inc unit, revealed "substantial discrepancies" in Stearns accounts that may require material adjustments to previously announce consolidated results of the company and its subsidiaries. Foster said certain Stearn officers and senior management made Stearn's operations appear more profitable than they were by improperly recording job costs. It said Stearn's president and controller had resigned. A Foster spokesman said he did not know the names of the president and controller, and could not immediately comment on the release. Foster said the amount involved in the "discrepancy" is about 13.7 mln dlrs before taxes or about 8.2 mln dlrs net after tax due to an "improper recording of job costs over a period of several years and continuing through part of the first quarter of 1987." Stearns is a unit of Foster's Conergic Corp subsidiary. The company said the impact on its results for 1987 was not "likely to be significant" but the amount to be charged to prior periods had not been determined. Foster reported after tax earnings of 28 mln dlrs, 26 mln dlrs and 35.4 mln dlrs for 1986, 1985, and 1984, respectively. Stearns, based in Crowley, Texas, makes airport baggage conveyor equipment and passenger loading bridges. Foster, a diversified international concern with 27 subsidiaries operating worldwide, is based in Livingston, New Jersey. Its reported revenues for the period ended December 26, 1986 of 1.3 billion dlrs. The company said a detailed audit and investigation is continuing. A company spokesman declined to comment further on the investigation.  
ELCOR CORP <ELK> 3RD QTR MARCH 31. Shr 21 cts vs eight cts Net 1.5 mln vs 536,000 Revs 26.6 mln vs 17.7 mln Nine months Shr 1.11 dlrs vs 43 cts Net 7.8 mln vs 3.0 mln Revs 86.9 mln vs 82.9 mln NOTE:Shares adjusted for 2-for-1 stock split payable May 28, 1987 to holders of record May 14, 1987. 1987 3rd qtr and nine months includes tax loss carryforward gain of 695,000 dlrs and 3.6 mln dlrs, respectively. 1986 3rd qtr nine months includes tax loss carryforward gains of 260,000 dlrs and 1.4 mln dlrs, respectively.  
ABINGTON SAVINGS BANK <ABBK.O> 1ST QTR NET. Shr 27 cts vs not given Net 617,000 vs 550,000 Loans 92.8 mln vs 84.7 mln Deposits 121.9 mln vs 119.4 mln Assets 155.4 mln vs 152.4 mln Note: prior share not given due to June 18, 1986 conversion to stock ownserhip  
BANKING CENTER <TBCX> 1ST QTR NET. Shr 29 cts vs not given Net 3,508,000 vs 2,483,000 NOTE: Company went public in August 1986. 1986 figures restated. Net includes loan loss provision 550,000 dlrs vs 203,000 dlrs, gain on sale of securities of 309,000 dlrs vs 638,000 dlrs and gain on sale of loans 403,000 dlrs vs 553,000 dlrs.  
CHEMICAL <CHL> NET HURT BY BRAZIL, EXPENSES. Chemical New York Corp said its first-quarter profits fell by 16 pct, largely because it placed 1.04 billion dlrs of loans to Brazil on non-accrual. Chemical reported first-quarter net income of 86.2 mln dlrs, down from 102.6 mln a year earlier, but declaring the Brazilian loans non-performing cost Chemical 21 mln dlrs in lost interest income, or 12 mln dlrs after-tax. A 13.3 pct jump in non-interest expense to 471.3 mln dlrs from 415.9 mln also hit the bottom line. It said the rise was mainly due to staff costs associated with continued growth in consumer, capital markets and investment banking activities. Excluding the effect of placing Brazil on non-accrual, Chemical said its net income would have been 98.2 mln dlrs, or 4.3 pct below 1986 earnings. Brazil suspended interest payments on 68 billion dlrs of medium- and long-term debt on February 20. If they are not resumed by year's end, Chemical said its after-tax net for the whole of 1987 will be reduced by about 51 mln dlrs. Chemical also placed 52 mln dlrs of loans to Ecuador on non-accrual because the Quito government also suspended interest payments on its foreign debt. This reduced interest income by 1.5 mln dlrs. Chemical said net interest income fell to 476.4 mln dlrs from 488.9 mln and its net spread narrowed to 3.61 pct from 3.96 pct. This reflected the reclassification of Brazilian loans, a reduced federal income tax rate (which affected the calculation of the taxabale-equivalent adjustment on tax-exempt assets) and a narrowing of the spread between the prime rate and Chemical's cost of funds. Foreign exchange trading profits rose to 37.9 mln dlrs from 27.0 mln, but bond trading profits dropped to 21.9 mln dlrs from 26.2 mln. Fees from trust and other banking services rose to 146.5 mln dlrs from 129.3 mln a year earlier, Chemical said. The provision for loan losses was 87.2 mln dlrs, compared with 83.8 mln. Net loan charge-offs were 86.5 mln, up from 60.7 mln, leaving the allowance for loan losses at 672.6 mln dlrs at quarter's end, or 1.74 pct of loans outstanding, compared with 594.3 mln, or 1.50 pct, a year earlier. Non-accruing loans at the end of March were 2.39 billion dlrs (1.35 billion excluding Brazil), compared with 1.35 billion at the end of 1986 and 1.22 billion at the end of March, 1986.  
GENETICS <GENI.O> SEES HIGHER 87 LOSSES. Genetics Institute Inc, earlier reporting an increased first quarter net loss, said it expects to incur losses in fiscal 1987 "that are somewhat higher than those reported in fiscal 1986." It had a loss of 4,504,000 dlrs for fiscal 1986 ended November 30, compared to a fiscal 1985 loss of 1,732,00 dlrs. The company said the losses result from its strategic decision to invest prudent levels of equity in development of products the company can manufacture and bring to market. Genetics earlier said first quarter ended February 28 losses rose to 1,309,000 dlrs from year-ago loss of 937,000 dlrs.  
SOLITRON DEVICES INC <SOD> 4TH QTR NET. Period ended February 28 Shr 40 cts vs 15 cts Net 1,747,000 vs 775,000 Revs 13.2 mln vs 13.3 mln Avg shrs 4,321,376 vs 5,148,318 Year Shr 67 cts vs 67 cts Net 3,300,000 vs 3,299,000 Revs 49.5 mln vs 50.2 mln Avg shrs 4,895,788 vs 4,951,177 Note: 1986 year after 819,000 dlr tax provision and 660,000 dlr tax credit 1985 year after 559,000 dlr credit for anticipated income tax settlement for 1970 and 331,000 dlr tax provision  
U.S. TRUST CORP FIRST QTR SHR 88 CTS VS 83 CTS.  U.S. TRUST CORP FIRST QTR SHR 88 CTS VS 83 CTS  
PEOPLES HERITAGE BANK <PHBK> 1ST QTR NET. Shr 51 cts vs not given Net 4,661,000 vs 2,499,000 NOTE: Net includes securities gains of 663,000 dlrs vs 1,173,000 dlrs. Company went public in December 1986.  
STUART HALL CO INC <STUH.O> 1ST QTR FEB 28 NET. Shr 11 cts vs 12 cts Net 301,820 vs 248,419 Revs 12.1 mln vs 10.2 mln Avg shrs 2,855,966 vs 2,033,881  
CLAYTON HOMES INC <CMH> 3RD QTR MARCH 31 NET. Shr 21 cts vs 18 cts Net 2,256,000 vs 1,915,000 Revs 38.2 mln vs 35.3 mln Nine mths Shr 62 cts vs 56 cts Net 6,474,000 vs 5,808,000 Revs 125.9 mln vs 112.3 mln Backlog nine mln vs six mln NOTE: Share adjusted for five-for-four stock split in June 1986.  
U.S. TRUST CORP <USTC.O> 1ST QTR NET. Shr primary 88 cts vs 83 cts Shr diluted 84 cts vs 78 cts Net 8,869,000 vs 8,176,000 Avg Assets 2.62 billion vs 2.42 billion Deposits 2.06 billion vs 1.80 billion  
DESPTP OMC <DSO> 1ST QTR NET. Shr 54 cts vs 51 cts Net 2,151,000 vs 2,439,000 Sales 90.3 mln vs 96.8 mln Avg shrs 3,960,000 vs 4,782,000  
PARK COMMUNICATIONS INC <PARC.O> 1ST QTR MAR 31. Shr 15 cts vs 14 cts Net 2,028,000 vs 1,879,000 Revs 32.1 mln vs 29.5 mln  
FEDERAL GUARANTEE CORP <FDGC.O> 1ST QTR NET. Shr 34 cts vs 32 cts Net 2,891,844 vs 2,666,278 Revs 13.7 mln vs 12.7 mln  
ANGELL CARE MASTER LP <ACR> RAISES QUARTERLY. Shr 38 cts vs 36 cts prior Pay July 31 Record June 23  
FRANKLIN MICHIGAN INSURED SETS LOWER PAYOUT. Mthly div 6.6 cts vs 6.9 cts prior Pay April 30 Record April 15 NOTE: Franklin michigan Insured Tax-Free Income Fund.  
FRANKLIN HIGH YIELD SETS HIGHER PAYOUT. Mthly div eight cts vs 7.1 cts prior Pay April 30 Record April 15 NOTE: Franklin High Yield Tax-Free Income Fund.  
FRANKLIN PENNSYLVANIA TAX-FREE IN INITIAL PAYOUT. Franklin Pennsylvania Tax-Free Income Fund said its board declared an initial monthly dividend of six cts per share, payable April 30 to holders of record April 15.  
FRANKLIN PENNSYLVANIA U.S. SETS INITIAL PAYOUT. Franklin Pennsylvania Investors U.S. Government Securities Fund Fund said its board declared an initial monthly dividend of 7.8 cts per share, payable April 30 to holders of record April 15.  
NATIONAL WESTMINSTER BANK USA 1ST-QTR NET RISES. National Westminster Bank USA said higher loans and core deposit volumes as well as a substantial increase in net interest income contributed to a 16 pct rise in first-quarter earnings to 17.7 mln dlrs from 15.3 mln reported a year earlier. The earnings gain came despite a 1.5 mln dlr reduction of income as a result of placing Brazilian loans on non-accrual. Net interest income totalled 92.5 mln dlrs compared with 91.7 mln dlrs in the same 1986 period as loans, mostly to middle market businesses, increased by 896 mln dlrs. But some of these gains were offset by low levels of interest rates. Provision for loan losses rose to 13.8 mln dlrs from 13.0 mln a year earlier. At March 31, the allowance for loan losses was 114.2 mln dlrs versus 94.8 mln at end of March 1986. Non-accrual loans rose to 286 mln dlrs from 132 mln at the end of the first quarter of 1986, largely because 119 mln dlrs of loans to Brazil were put on non-accrual status. The bank said that if these loans remain on non-accrual for the remainder of the year net income for 1987 would be reduced by about 4.9 mln dlrs. National Westminster Bank USA is a wholly-owned subsidiary of National Westminster Bank PLC.  
LASER PHOTONICS INC <LAZR.O> 4TH QTR DEC 31. Shr loss 26 cts vs loss one cts Net loss 699,000 vs loss 20,617 Revs 883,000 vs 1.1 mln Year Shr loss 62 cts vs loss eight cts Net loss 1.7 mln vs loss 185,003 Revs 3.6 mln vs 4.5 mln  
EASTERN UTILITIES ASSOCIATES <EUA> UPS PAYOUT. Qtly div 57-1/2 cts vs 54-1/2 cts prior qtr Pay May 15 Record May 1  
PEOPLES HERITAGE BANK <PHBK> 1ST QTR NET. Shr 51 cts vs not given Net 4,661,000 vs 2,499,000 NOTE: Includes net securities gains of 663,000 dlrs vs 1.2 mln dlrs from. Company converted to stock ownership in December 1986.  
BIOTECH ELECTRONICS INC <ION.TO> 3RD QTR NET. Shr eight cts vs one-half ct Net 508,000 vs 21,000 Revs 7.2 mln vs 7.4 mln Nine mths Shr 28 cts vs 11 cts Net 1,523,000 vs 567,000 Revs 26.2 mln vs 22.6 mln Note: period ended February 28. Reuter  
MYERS INDUSTRIES INC <MYE> 1ST QTR NET. Shr 22 cts vs 18 cts Net 803,708 vs 642,534 Sales 21.0 ln vs 18.8 mln NOTE: Per share figures adjusted for ten pct stock dividend paid August 1986.  
GTE CORP 1ST QTR SHR 78 CTS VS 86 CTS.  GTE CORP 1ST QTR SHR 78 CTS VS 86 CTS  
PEOPLE'S SAVINGS BANK OF BROCKTON <PBKB.O>. Net 646,000 vs 470,000 Assets 173.0 mln vs 152.9 mln NOTE:Quarter ended March 31. The company completed conversion from mutual to stock form in October 1986, raising 14.1 mln dlrs in net proceeds through the sale of 2.3 mln shares of common stock.  
MICRO GENERAL CORP <MGEN.O> 4TH QTR LOSS. Period ended December 28. Shr nil vs loss six cts Net loss 6,319 vs loss 265,651 Revs 1,117,778 vs 1,090,001 Avg shrs 6,874,383 vs 4,323,614 Year Shr nil vs loss 10 cts Net profit 4,323 vs loss 432,458 Revs 4,711,350 vs 4,256,708 Avg shrs 6,837,871 vs 4,322,816  
GTE CORP <GTE> 1ST QTR MAR 31. Shr 78 cts vs 86 cts Net 265.0 mln vs 283.0 mln Revs 3.7 billion vs 3.6 billion Avg shrs 329.0 mln vs 319.0 mln  
GTE POSTS PRE-TAX LOSS OF 121 MLN DLRS IN 1ST QTR FOR 50 PCT SHARE OF US SPRINT.  GTE POSTS PRE-TAX LOSS OF 121 MLN DLRS IN 1ST QTR FOR 50 PCT SHARE OF US SPRINT  
SQUARE D CORP <SQD> 1ST QTR NET. Shr 79 cts vs 73 cts Net 22,901,000 vs 21,042,000 Sales 336.1 mln vs 334.1 mln  
TALKING POINT/IBM <IBM>. International Business Machines Corp has started the year aggressively, but industry analysts said the company still faces some tough rounds in its fight to stop a two-year earnings slump. "I am more impressed with what's happening at IBM than I have been in a long time," said PaineWebber analyst Stephen Smith. "But they're not out of the woods yet," he added. At 1.30 dlrs a share, IBM's first-quarter net income easily topped most estimates on Wall Street, which had ranged from an even dollar to 1.20 dlrs. Most analysts said they were pleasantly surprised by IBM's performance. But they indicated that IBM's chances for a full recovery hinged on several key factors whose impact will not be felt until later in the year. These include the success of IBM's new personal computer line, introduced two weeks ago, and its 9370 minicomputers, which will begin volume shipments in July. In addition, IBM has said the full benefits of its early-retirement program and other cost-cutting moves will emerge as the year progresses. Analysts noted that IBM chairman John F. Akers was relatively more upbeat in assessing the company's outlook than he has been for nearly a year. "Although the worldwide economic situation remains unsettled, there are some encouraging signs in our business," Akers said, pointing to, among other things, higher first-quarter shipments. "We remain optimistic about the prospects for both the industry and IBM," he said. "Akers was most encouraging," said PaineWebber's Smith. A weak dollar, a lower tax rate and strong mainframe computer sales all contributed to the better-than-expected first-quarter results, analysts said. "Shipments of the 3090 mainframes were very strong in March," after a weak January and February, said Ulric Weil of Washington-based Weil and Associates. Sales of the top-of-the-line mainframes, commonly called the Sierras, "bailed out the whole quarter," Weil said, adding, "If this continues, it augers well for the rest of the year." REUTER...^M  
MICRO MASK INC <NMS.O> 2ND QTR MAR 31 OPER LOSS. Oper shr loss 20 cts vs loss 63 cts Oper net loss 439,000 vs loss 1,347,000 Sales 6,303,000 vs 5,062,000 Six mths Oper shr loss 43 cts vs loss 1.02 dlrs Oper net loss 934,000 vs loss 2,333,000 Sales 12.1 mln vs 9,878,000 Note: oper data does not include 1986 losses from discontinued operations of 60,000 dlrs, or three cts per shr, in qtr and 151,000 dlrs, or seven cts per shr, in six mths.  
IRVING BANK <V> 1ST-QTR NET HURT BY BRAZIL. Irving Bank Corp said a six pct drop in first-quarter net income from a year earlier was largely the result of placing medium- and long-term loans to borrowers in Brazil and Ecuador on non-accrual status. Income in the first three months fell to 28.60 mln dlrs from 30.43 mln in the same 1986 period. Earnings per share dropped to 1.51 dlrs from 1.62. Irving put 215 mln dlrs of Brazilian and 33 mln dlrs of Ecuadorean loans on non-accrual, reducing first-quarter net income by a total of 4.4 mln dlrs after tax. Irving estimates full year net would be reduced by 15.3 mln dlrs after tax if no cash interest payments are received on these loans during the remainder of 1987. Also adversely affecting earnings were losses on the trading of securities and higher non-interest expenses, although these were partly offset by increased trust income, profits from foreign exchange trading and investment securities gains, the bank said. The allowance for loan losses was 224.8 mln dlrs, up from 185.2 mln a year earlier. The provision for loan losses was 21.8 mln versus 19.5 mln in the first quarter of 1986.  
ALLEGHENY/WESTERN ENERGY <ALGH.O> UPS PAYOUT. Qtly div 7-1/2 cts vs six cts prior Pay June 3 Record May 15 NOTE: Full name Allegheny and Western Energy Corp.  
UNITED TELECOMMUNICATIONS INC 1ST QTR SHR 13 CTS VS 47 CTS.  UNITED TELECOMMUNICATIONS INC 1ST QTR SHR 13 CTS VS 47 CTS  
<COAST R.V. INC> 1ST QTR NET. Shr profit one ct vs loss 28 cts Net profit 23,000 vs loss 725,000 Sales 20.6 mln vs 18.5 mln Avg shrs 3,959,011 vs 2,608,571  
FIRST COMMERCE CORP <FCOM> 1ST QTR NET. Shr 40 cts vs 31 cts Net 5,151,000 vs 4,078,000  
MARK IV INDUSTRIES INC <IV> 4TH QTR FEB 28 NET. Shr 30 cts vs 17 cts Net 2,526,000 vs 1,452,000 Revs 71.9 mln vs 25.2 mln Year Shr 1.20 dlrs vs 68 cts Net 10.2 mln vs 4,738,000 Revs 291.5 mln vs 83.0 mln Avg shrs 8,511,000 vs 6,983,000 NOTE: Current periods include gain of 299,000 dlrs in qtr and 1.2 mln dlrs in year from changes in pension accounting. Year-ago shr figures restated for 3-for-2 splits paid June 1986 and January 1987.  
SALICK HEALTH CARE INC <SHCI.O> 2ND QTR NET. Period ended February 28. Shr 14 cts vs 10 cts Net 741,000 vs 510,000 Revs 5,980,000 vs 4,836,000 Six Mths Shr 29 cts vs 20 cts Net 1,556,000 vs 1,080,000 Revs 12.2 mln vs 9,214,000  
VOPLEX CORP <VOT> 1ST QTR MAR 31. Shr 25 cts vs 23 cts Net 670,105 vs 599,107 Revs 21.4 mln vs 20.1 mln  
FRANKLIN MASSACHUSETTS SETS MONTHLY PAYOUT. Mthly div 6.5 cts vs 6.5 cts prior Pay April 30 Reord April 15 NOTE: Franklin Massachusetts Insured Tax-Free Income Fund.  
FRANKLIN MINNESOTA SETS MONTHLY PAYOUT. Mthly div 6.6 cts vs 6.6 cts prior Pay April 30 Reord April 15 NOTE: Franklin Minnesota Insured Tax-Free Income Fund.  
FRANKLIN INSURED SETS MONTHLY PAYOUT. Mthly div 7.1 cts vs 7.1 cts prior Pay April 30 Reord April 15 NOTE: Franklin Insured Tax-Free Income Fund.  
FRANKLIN OHIO SETS MONTHLY PAYOUT. Mthly div 6.1 cts vs 6.1 cts prior Pay April 30 Reord April 15 NOTE: Franklin Ohio Insured Tax-Free Income Fund.  
FRANKLIN PUERTO RICO SETS MONTHLY PAYOUT. Mthly div 7.1 cts vs 7.1 cts prior Pay April 30 Reord April 15 NOTE: Franklin Puerto Rico Tax-Free Income Fund.  
FRANKLIN CALIFORNIA SETS MONTHLY PAYOUT. Mthly div 6.5 cts vs 6.5 cts prior Pay April 30 Reord April 15 NOTE: Franklin California Insured Tax-Free Income Fund.  
UNITED TELECOMMUNICATIONS INC <UT> 1ST QTR NET. Shr 13 cts vs 47 cts Net 13,492,000 vs 46,417,000 Revs 720.2 mln vs 793.6 mln Avg shrs 99,085,000 vs 96,804,000 NOTE: Per-share results reflect payment of preferred dividend requirements  
FIRST PENNSYLVANIA CORP <FPA> 1ST QTR NET. Shr 15 cts vs 13 cts Net 8,753,000 vs 7,804,000 Avg shrs 32.6 mln vs 23.2 mln NOTE: Includes gains of 4.1 mln dlrs or 12 cts vs 3.3 mln dlrs or 15 cts from tax loss carryforwards.  
ENTRE COMPUTER CENTERS INC<ETRE.O> 2ND QTR LOSS. Ended Feb 28 Shr loss 29 cts vs profit 10 cts Net loss 2,733,000 vs profit 911,000 Revs 21.5 mln vs 18.5 mln Six mths Shr loss 23 cts vs profit 26 cts Net loss 2,154,000 vs profit 2,445,000 Revs 37.8 mln vs 37.7 mln  
GTE <GTE> CITES LOSS OF SPRINT. GTE Corp said the decline in its first quarter net income reflects a 121 mln dlr loss from its 50 pct share ownership of U.S. Sprint's operations. This loss is an increase from the 60 mln dlrs loss reported on operations GTE owned a year ago quarter and prior to entering a joint venture with United Telecommunications <UT> in July 1986. Under the joint venture, each company owns 50 pct of Sprint. Earlier, the company reported net income declined to 265.0 mln dlrs from 283.0 mln dlrs in the first quarter a year ago. Theodore Brophy, chairman of GTE said, "we expect US Sprint's losses to diminish later this year as customer traffic migrates to the new fiber-optic network for long distance telecommunications. The reason for the higher losses reflect lower prices as well as higher operating costs related, in part, to the fraudalent use of the network. Operating income of its telephone operations, which account for 91 pct of the total, rose eight pct to 736.0 mln dlrs. Revenues from telephone operations rose eight pct to 2.9 billion dlrs.  
NEW ENGLAND SAVINGS BANK <NESB> 1ST QTR NET. Shr 44 cts vs not given Net 3,499,000 vs 2,295,000 NOTE: Converted to stock ownership Aug 1, 1986.  
AMERICAN NATIONAL CORP <FNB> 1ST QTR NET. Net 12.8 mln vs 12.2 mln Loans 2.8 billion vs 2.5 billion Deposits 3.2 billion vs 2.9 billion Assets 4.5 billion vs 3.8 billion NOTE: American National Corp is a wholly-owned subsidiary of First Chicago Corp.  
AB ASTRA SHARE SPLIT TO WIDEN FOREIGN OWNERSHIP. AB Astra <ASTS.ST> said it was proposing a two-for-one share split and the issue in June of a new series of foreign-targeted shares with lower voting rights as part of a strategy to internationalise the company. The deal, which requires Swedish government approval, will raise the percentage of foreign voting rights allowed in the medical group to 22.5 pct from 20 pct, Astra said. An extraordinary meeting of Astra's board proposed the creation of B free shares open to foreign buyers with one tenth of a voting right per share. At present, Astra stock consists of one series of restricted shares and one of free shares.  
CORRECTED-<NATIONAL WESTMINSTER BANK USA>1ST QTR. Net 17.7 mln vs 15.3 mln NOTE: <National Westminster Bank PLC> subsidiary. Loan loss provision 13.8 mln vs 13.0 mln Investment securities gains 2,003,000 dlrs vs 169,000 dlrs. Figures in dollars. Corrects name to subsidiary from parent.  
THE ONE BANCORP <TONE> 1ST QTR NET. Shr 76 cts vs 51 cts Net 5,952,000 vs 4,374,000 Avg shrs 7,837,511 vs 7,446,356 NOTE: Includes gains of 1.3 mln dlrs vs 239,000 dlrs from benefit of tax loss carryforwards. Includes operations of Bank of Hartford, acquired Feb 23. Year-ago shr figures reflect 2-for-1 split on April 15, 1986.  
ARISTECH <ARS> SAYS 1ST QTR SHR ESTIMATE RIGHT. Aristech Chemical Corp chairman and chief executive officer Thomas Marshall said analysts' estimates of its 1987 fiscal year earnings of 2.25 dlrs to 2.50 dlrs per share are about right. Addressing a gathering of analysts and institutional investors, Marshall also said that analysts' estimates of its first qtr earnings - 50 cts to 55 cts per share - were "in the ballpark." Marshall said the full year estimates represent more than a 32 pct increase over 1986's fiscal year net of 1.70 dlrs per share. He also said the first quarter estimates were 70 pct higher than 1986's first quarter net of 29 cts per share. Marshall attributibuted the first quarter earnings growth to several factors, including sustained demand in Aristech's major domestic markets and continued growth in exports. Aristech plans to spend approximately 200 mln dlrs over in capital investments over the next three years, Marshall added.  
UNITED TELECOM <UT> REPORTS US SPRINT LOSS. United Telecommunications Inc said its lower first quarter earnings included a loss of 63,055,000 dlrs from its equity in US Sprint. US Sprint was formed July 1, 1986, as a partnership which combined United Telecommunications' long distance voice and data operations with those of GTE Corp <GTE>. Earlier, United Telecommunications reported first-quarter earnings of 12.6 mln dlrs, or 13 cts a share compared to 46.4 mln dlrs, or 47 cts a share a year ago. Revenues declined to 720.2 mln dlrs from 793.6 mln dlrs. United Telecommunications said the transition of US Sprint's nationwide fiberoptic network is proceeding ahead of schedule. It said the transition to the fiber network from interim networks would not only reduce operating costs in the second half of 1987, but also assist in controlling unauthorized network use.  
BRAND COMPANIES <BRAN> SEES FIRST QUARTER LOSS. Brand Companies Inc said it expects to report a 1987 first quarter loss of 15 to 17 cts a share on revenues of 20 to 22 mln dlrs. In the 1986 first quarter, Brand reported earnings of 21 cts on revenues of 28.5 mln dlrs. No reason was given for the expected loss. Final quarterly results will be reported toward the end of the month or the beginning of May, a company spokesman said.  
PUEBLO INTERNATIONAL INC <PII> SETS PAYOUT. Qtly div five cts vs five cts prior Pay June Two Record April 27  
<C AND R CLOTHIERS INC> JAN 31 YEAR NET. Shr 1.46 dlrs vs 66 cts Net 1,514,312 vs 714,670 Sales 62.1 mln vs 57.2 mln  
PERSONAL COMPUTER PRODUCTS <PCPI.O> EXPECTS LOSS. Personal Computer Products Inc said it expects to report a loss of about 195,000 dlrs in its third quarter ended March 31, compared to a year ago loss in the quarter of 169,000 dlrs. It said revenues in the quarter are expected to be about 1,200,000 dlrs, compared to 564,000 dlrs a year earlier. For the nine months ended March 31, Personal Computer expects a net loss of about 325,000 dlrs, compared to a loss of 584,000 dlrs the previous year. Revenues in the nine months are expected to be about 3,880,000 dlrs, compared to 1,828,000 a year ago. The company said it will report its earnings soon.  
GREAT NORTHERN NEKOOSA FIRST QTR SHR 1.59 DLRS VS 54 CTS.  GREAT NORTHERN NEKOOSA FIRST QTR SHR 1.59 DLRS VS 54 CTS  
GREAT NORTHERN NEKOOSA <GNN> 1ST QTR NET. Shr 1.59 dlrs vs 54 cts Net 43.3 mln vs 13.9 mln Revs 566.7 mln vs 487.8 mln Avg shrs 27.2 mln vs 25.9 mln NOTE: 1986 figures restated for adoption of financial accounting standards board statement 87 "employer's accounting for pensions." Net 1986 and 1987 includes 900,000 dlrs of investment tax credits in 1987, and 3.1 mln dlrs in 1986.  
AMERICAN HEALTH PROPERTIES INC <AHE> 1ST QTR. Shr 18 cts Net 1,948,000 Revs 3,397,000 Note: Company began operating on February 20, 1987.  
WELLS FARGO AND CO 1ST QTR SHR 1.36 DLRS VS 1.13 DLRS.  WELLS FARGO AND CO 1ST QTR SHR 1.36 DLRS VS 1.13 DLRS  
WELLS FARGO AND CO <WFC> 1ST QTR NET. Shr 1.36 dlrs vs 1.13 dlrs Net 78.3 mln vs 51.6 mln Avg shrs 53,698,000 vs 43,449,000 Loans 35.89 billion vs 24.66 billion Deposits 31.71 billion vs 19.64 billion Assets 43.98 billion vs 28.60 billion  
COMERICA INC <CMCA.O> 1ST QTR NET. Shr 1.78 dlrs vs 1.12 dlrs Shr diluted 1.72 dlrs vs 1.08 dlrs Net 20,029,000 vs 13,059,000 Avg shrs 10,598,481 vs 10,430,649 Loans 843.4 mln vs 727.5 mln Deposits 8.30 billion vs 7.82 billion Assets 9.89 billion vs 9.27 billion NOTE: Per-share results reflect payment of preferred dividends  
CHAMPION PRODUCTS <CH> SETS PAY DATE FOR SPLIT. Champion Products Inc said the two-for-one stock split it declared February 26 will be payable April 24 to shareholders of record April One.  
SPEARHEAD INDUSTRIES INC <SPRH.O> 3RD QTR NET. Periods ended Feb 28 Shr 22 cts vs 30 cts Net 549,000 vs 747,000 Sales 8.4 mln vs nine mln Avg shrs 2,550,784 vs 2,468,964 Nine mths Shr 69 cts vs 63 cts Net 1,749,000 vs 1,554,000 Sales 23.6 mln vs 21.3 mln Avg shrs 2,543,711 vs 2,453,520  
KDI CORP <KDI> 1ST QTR MARCH 31. Shr 18 cts vs six cts Net 1.7 mln vs 610,000 Revs 68.7 mln vs 63.5 mln  
SOFTWARE SERVICES OF AMERICA INC <SSOA.O> NET. 3rd qtr Feb 28 Shr profit 14 cts vs loss four cts Net profit 311,994 vs loss 66,858 Revs 2,229,273 vs 645,753 Nine mths Shr profit 51 cts vs profit two cts Net profit 1,126,673 vs profit 42,718 Revs 7,277,340 vs 1,378,372  
HEALTH AND REHABILITATION <HRP> SETS FIRST DIVI. Health and Rehabilitation Properties Trust said it declared its initial dividend of 55 cts per share for the quarter ending March 31, 1987. The dividend is payable May 20 to shareholders of record April 20, 1987, it said. The dividend includes five cts attributable to the period between Dec 23 and 31, 1986, and 50 cts attributable to the first quarter of 1987, ending March 31, 1987.  
UTAH POWER AND LIGHT CO <UTP> 1ST QTR NET. Shr 46 cts vs 58 cts Net 29.0 mln vs 37.9 mln Revs 251.2 mln vs 254.2 mln Avg shrs 57.9 mln vs 56.0 mln 12 mths Shr 1.36 dlrs vs 2.37 dlrs Net 93.7 mln vs 152.3 mln Revs 981.9 mln vs 1.03 billion Avg shrs 57.2 mln vs 55.3 mln NOTE: 1987 12 mth net includes 43.7 mln dlr charge due to December 1986 provision for coal mining operations refund.  
COMPUTRAC <LLB> SEES LOWER FIRST QUARTER NET. CompuTrac Inc said it expects first quarter earnings to be down 50 to 60 pct from a year ago. In last year's first quarter ended April 30, CompuTrac earned 379,000 dlrs on revenues of 2.4 mln dlrs. The company said sales commitments on hand are about 50 pct above those of a year ago, but system sales revenues are recognized at shipment, and only 30 to 40 pct of sales commitments in hand will ship during the period. It said its outlook for the year remains unchanged.  
BARNETT BANKS OF FLORIDA INC <BBF> 1ST QTR NET. Shr 82 cts vs 72 cts Net 44.6 mln vs 38.9 mln Avg shrs 54.3 mln vs 52.8 mln  
GOLDEN WEST FINANCIAL CORP <GDW> 1ST QTR NET. Shr 1.35 dlrs vs 1.53 dlrs Net 42,137,000 vs 47,792,000 Loans 10.26 billion vs 9.97 billion Deposits 7.65 billion vs 7.63 billion Assets 11.84 billion vs 12.00 billion Note: Current qtr figures include 3.3 mln dlr charge resulting from penalties for prepayment of FHLB borrowings.  
HONEYWELL INC <HON> 1ST QTR OPER NET. Oper shr 96 cts vs 79 cts Oper net 43.7 mln vs 36.4 mln Sales 1.48 billion vs 1.15 billion NOTE: 1987 sales includes operations of Sperry Aerospace. 1986 operating net excludes a charge from discontinued operations of 10.2 mln dlrs or 22 cts a share.  
WALL STREET STOCKS/BROWNING FERRIS <BFI>. The Environmental Protection Agency's five to 10 mln dlr suit against a Browning-Ferris Industries Inc <BFI> unit, CECOS International Inc, caused the stock to drop today, analysts said. The stock has fallen 2-1/4 to 56-1/8 so far today, after the news about the suit was released this morning. "It's potentially a big suit and investors feel that its not good to go against regulators," Kenneth Ch'u-K'ai Leung, a Smith Barney analyst said. "What investors are actually saying by selling off some BFI shares is the cloud over this industry is the threat that the EPA will get tough on waste management companies," Willard Brown, senior analyst for First Albany Corp. "Investors are saying to themselves that waste management companies have that kind of exposure to regulatory suits," Brown said. Brown said if the suit were settled for 10 mln dlrs it would have an impact on Browning Ferris earnings. Leung said, however, that Browning-Ferris has adequate cash reserves to cover the fine. "It would have no impact on earnings whatsoever," he said.  
CHRONAR CORP <CRNR.O> YEAR LOSS. Shr loss 95 cts vs loss nine cts Net loss 6,882,497 vs loss 513,153 Revs 11.3 mln vs 10.0 mln Avg shrs 7,251,000 vs 6,017,000 NOTE: 1986 net includes 1,600,000 dlrs in increased provisions for uncollectible receivables from affiliates, lower recoverable value of inventories and writeoffs of capitalized costs on discontinued projects, 1,700,000 dlr provision for resolution of shareholder class action suit and gain 1,300,000 dlrs from repurchase of manufacturing equipment.  
INTERNATIONAL RESEARCH <IRDV> 1ST QTR NET. Shr six cts vs three cts Net 152,360 vs 94,141 Revs 4,073,911 vs 4,116,333 NOTE: International Research and Development Corp is full name of company.  
INT'L RESEARCH/DEVELOPMENT <IRDV.O> 1ST QTR NET. Shr six cts vs three cts Net 152,360 vs 94,141 Revs 4,073,911 vs 4,116,333 Note: Full name is International Research and Development Corp.  
BANK OF NEW ENGLAND CORP 1ST QTR SHR 1.04 DLRS VS 83 CTS.  BANK OF NEW ENGLAND CORP 1ST QTR SHR 1.04 DLRS VS 83 CTS  
HONEYWELL <HON> CITES COST CUTTING FOR GAIN. Honeywell Inc said a gain of 20.1 pct in its 1987 first quarter operating earnings was the result of cost cutting efforts which began last year. Honeywell reported 1987 first quarter operating earnings rose to 43.7 mln dlrs or 96 cts a share from 36.4 mln dlrs or 79 cts in the same period a year ago. Better operating results in each of the company's three sectors offset higher interest costs in the first quarter due to financing the December acquisition of Sperry Aerospace and the sharing of the Federal Systems subsidiary pre-tax profit with Honeywell Bull Inc, Honeywell said. "Our first quarter results show clear benefits of our restructuring," chairman Edson Spencer said. "All of our businesses are producing better results than last year, even though we do not see significant improvement in the external market environment," he said. Total orders in the first quarter were up substantially, with a sharp increase in aerospace and defense orders in addition to those of the new Sperry Aerospace group, it said. Domestic industrial automation and control orders were modestly higher than the same period in 1986, it said. Orders in Honeywell's home and building automation and control business were flat in the U.S. and up in international markets, it said. International orders increased, with the greatest strength in Europe, Honeywell said. The company said that by year-end 1987, it intends to complete the repurchase of 3.3 mln shares remaining of a five mln share buyback program which began in 1986.  
MGM/UA COMMUNICATIONS <MGM> 2ND QTR FEB 28 LOSS. Shr loss 34 cts Net loss 17.1 mln vs profit 10.1 mln Revs 106.2 mln vs 101.2 mln Six mths Shr loss 28 cts Net loss 14.4 mln vs profit 11.6 mln Revs 237.2 mln vs 179.5 mln Note: Company said year ago per share not given as not comparable due to certain allocations of expenses from the Turner Entertainment Group, not made in subsequent periods. 1987 results reflect the TBS merger agreement and operations of the company as independent agent. 1986 data includes extraordinary tax loss carryforward gains of 1,185,000 dlrs in qtr and six mths.  
INTERFIRST CORP 1ST QTR LOSS 28 CTS VS PROFIT THREE CTS.  INTERFIRST CORP 1ST QTR LOSS 28 CTS VS PROFIT THREE CTS  
WILLAMETTE INDUSTRIES <WMTT> 4TH QTR NET. Shr 90 cts vs 30 cts Net 22.9 mln vs 7,567,000 Sales 323.0 mln vs 272.1 mln Note: per share figures reflect April 25, 1986 five-to-three stock split. Full year figures not available.  
MARINE MIDLAND BANKS INC 1ST QTR 1.74 DLRS VS 1.89 DLRS.  MARINE MIDLAND BANKS INC 1ST QTR 1.74 DLRS VS 1.89 DLRS  
AMERICAN CENTURY <ACT> RESTATES EARNINGS. American Century Corp said it has restated its earnings for the fiscal year ended June 30, 1986 to provide an additional five mln dlrs to its loan loss allowance, causing a restated year-end net loss of 14,937,000 dlrs, instead of 9,937,000 dlrs. The company said the change came after talks with the Securities and Exchange Commission on the company's judgement in considering the five mln dlrs collectible. In the note to its 1986 financial statement, American Century said it considered the five mln dlrs collectible, making its loan loss provision less than required. The company said in spite of the SEC decision, it still feels its allowance for possible loan losses at June 30, 1986 was adequate and that it has considered all relevant information to determine the collectibility of the five mln dlr receivable. But, it said continued disagreement with the SEC staff would not be in its best interest.  
INTERFIRST CORP <IFG> 1ST QTR LOSS. Shr loss 28 cts vs profit three cts Net loss 18.9 mln vs profit 2.1 mln Assets 16.7 billion vs 19.8 billion Deposits 14.1 billion vs 16.2 billion Loans 12.2 billion vs 14.4 billion Note: Net includes securities gains of 20.4 mln vs 13.1 mln. Net charge-offs totaled 41.9 mln vs 42.2 mln, while provisions for loan losses was 56.6 mln vs 52.2 mln. Non-performing assets totaled 1.24 billion vs 799 mln.  
MARINE MIDLAND BANKS INC <MM> 1ST QTR NET. Shr 1.74 dlrs vs 1.89 dlrs Net 35.3 mln vs 38.2 mln Assets 24.5 billion vs 21.8 billion Deposits 16.9 billion vs 16.1 billion Loans 18.9 billion vs 16.0 billion NOTE: Qtr includes pre-tax provision of 9.7 mln dlrs, resulting in 5.7 mln dlrs after-tax loss, for reserve against interest due on medium- and long-term Brazilian loans. Net investment gains for the qtr were 2.2 mln dlrs versus a gain of 15.5 mln in last year's first quarter. Provision for loan losses in the quarter was 35.3 mln dlrs vs 44.1 mln dlrs the prior first quarter.  
BANK OF NEW ENGLAND CORP <BKNE.O> 1ST QTR. Shr 1.04 dlrs vs 83 cts Net 51.7 mln vs 39.4 mln  
CANANDAIGUA WINE CO INC <CDG.A> 2ND QTR NET. Qtr ended Feb 28 Shr 35 cts vs 38 cts Net 1,682,047 vs 1,817,820 Revs 36.1 mln vs 29.9 mln Six mths Shr 73 cts vs 75 cts Net 3,518,515 vs 3,606,689 Revs 74.1 mln vs 62.7 mln  
13-APR-1987. 13-APR-1987 
FLORIDA PROGRESS CORP <FPC> 1ST QTR NET. Shr 83 cts vs 94 cts Net 41.2 mln vs 45.5 mln Revs 428.4 mln vs 429.6 Avg shrs 49.8 mln vs 48.1 mln 12 months Shr 3.59 dlrs vs 3.53 dlrs Net 176.9 mln vs 164.4 mln Revs 1.87 billion vs 1.70 billion Avg shrs 49.3 mln vs 46.6 NOTE: 1986 first quarter profits restated down one cent a share as a result of previously reported pooling of interests merger with Mid-Continent Life Insurance Co.  
NATIONAL CITY BANCORP <NCBM.O> 1ST QTR NET. Shr 37 cts vs 27 cts Net 1,194,000 vs 870,000  
ONEOK INC <OKE> 2ND QTR FEB 28 NET. Shr 1.21 dlrs vs 1.80 dlrs Net 16.9 mln vs 24.6 mln Revs 230.9 mln vs 289.6 mln 12 mths Shr 1.97 dlrs vs 2.37 dlrs Net 27.6 mln vs 32.4 mln Revs 648.6 mln vs 875.7 mln NOTE: company reports earnings qtrly and includes the previous 12 mths figures.  
NATIONAL CITY BANCORP <NCBM.O> 10 PCT DIVIDEND. National City Bancorp said directors at the annual meeting declared a 10 pct stock dividend payable May 22, record April 24.  
FLAGLER BANK CORP <FLGLA.O> 1ST QTR NET. Shr 25 cts vs 23 cts Net 488,000 vs 443,000 Assets 289.3 mln vs 213.9 mln Deposits 254 mln vs 188.5 mln Loans 156.4 mln vs 123.4 mln NOTE: Per share amounts adjusted for stock dividends.  
NATIONAL CITY CORP <NCTY.O> 1ST QTR NET. Shr primary 87 cts vs 83 cts Shr diluted 85 cts vs 74 cts Net 35.9 mln vs 30.6 mln Avg shrs 41.0 mln vs 34.2 mln Assets 13.95 billion vs 12.34 billion Deposits 10.21 billion vs 9.24 billion Loans 9.22 billion vs 7.89 billion Return on assets 1.07 pct vs 1.05 pct Note: Net includes securities gains of seven cts a shr vs two cts. Net includes loan loss provision of 20.2 mln vs 12.6 mln. Net charge-offs totaled 15.6 mln, brining the loan loss reserve at the end of the qtr to 120.5 mln.  
BANK OF NEW ENGLAND <BKNE.O> POST PRO FORMA NET. Bank of New England Corp reported that pro forma first quarter earnings, which reflect its combined operations under a pending merger with the Conifer Group, rose to 60 mln dlrs, or 89 cts a share, from 49 mln dlrs, or 75 cts a share in 1986. The merger is expected to close on April 22. Earlier, Bank of New England reported first quarter net income, not taking the merger into account, rose to 1.04 dlrs from 83 cts a share. NOTE:First quarter of 1986 does not include restatement from recent acquisitions. After restatement, net income was 39.8 mln dlrs. The 1987 pro forma first quarter results include nonrecurring merger expenses of 4.7 mln dlrs. Excluding these expenses, growth in operating expenses of the combined companies was reduced from 14 pct to 12 pct during the first quarter. Loans and leases increased 34 pct to 19.5 billion dlrs and deposits grew 14 pct to 19.6 billion dlrs. The provision for possible credit losses was 14.4 mln dlrs in the first quarter compared with 19.7 mln dlrs last year. Net charge-offs were 10.9 mln dlrs, down from 12.8 mln dlrs in 1986.  
BURNHAM AMERICAN PROPOERTIES <BAPYZ.O> 2ND QTR. Qtr ended March 31 Net 268,760 vs 235,274 Revs 721,882 vs 575,806 Six mths Net 472,642 vs 464,042 Revs 1,372,453 vs 1,059,462 Note: per share data not given, as not comparable to net figures, which are before depreciation.  
ATHLONE INDUSTRIES INC <ATH> SETS QTLY DIVIDEND. Qtly div 40 cts vs 40 cts prior Pay May 15 Record May one.  
FIRST FEDERAL SAVINGS BANK <FFSD.O> 2ND QTR NET. Qtr ended March 31 Shr 88 cts Net 973,000 vs 713,000 Six mths Shr 1.35 dlrs Net 1,497,000 vs 1,464,000 Note: Bank went public on Dec 29, 1986.  
PLANTRONICS INC <PLX> 3RD QTR MARCH 28 NET. Shr 39 cts vs 32 cts Net 2,524,000 vs 2,046,00 Sales 28.5 mln vs 23.5 mln Nine Mths Shr 1.01 dlrs vs 1.09 dlrs Net 6,323,000 vs 6,990,000 Sales 80.6 mln vs 68.8 mln Note: Current qtr and nine mth net include 447,000 dlr gain on asset sales. Prior nine mth net includes 3.4 mln dlr asset sale gain.  
RHNB CORP <RHNB> 1ST QTR NET. Shr 61 cts vs 55 cts Net 695,252 vs 633,329 Loans 125.2 mln vs 89.9 mln Deposits 209.2 mln vs 172.9 mln Assets 245.5 mln vs 207.5 mln  
FIRST OF AMERICA BANK INC <FABK.O> 1ST QTR NET. Shr 1.12 dlrs vs 1.27 dlrs Net 15,000,000 vs 11,900,000 Avg shrs 9,642,403 vs 8,322,245 Loans 4.57 billion vs 3.29 billion Deposits 6.80 billion vs 4.75 billion Assets 7.75 billion vs 5.37 billion  
LOMAK PETROLEUM INC <LOMK.O> YEAR LOSS. Shr loss 10 cts vs loss 19 cts Net loss 1,348,000 vs loss 2,410,000 Revs 11.2 mln vs 22.3 mln Acg shrs 13.8 mln vs 12.9 mln  
BANKEAST CORP <BENH.O> 1ST QTR NET. Shr 35 cts vs 29 cts Net 3,732,000 vs 3,131,000 Assets 1.09 billion vs 861.2 mln Deposits 817.7 mlnvs 705.7 mln Loans 704.1 mln vs 553.4 mln Note: 1986 results restated to reflect acquisition of United Banks Corp.  
UST CORP <UTSB.O> 1ST QTR NET. Shr 41 cts vs 31 cts Net 4,568,656 vs 3,461,674 Assets 1.7 billion vs 1.4 billion Deposits 1.46 billion vs 1.19 billion Note: 1986 results restated to reflect a 100 pct stock dividend.  
CENTRAL ILL PUBLIC SERVICE <CIP> 1ST QTR NET. Shr 28 cts vs 29 cts Net 10,978,000 vs 11,916,000 Revs 153.5 mln vs 163.4 mln NOTE: Full name is Central Illinois Public Service Co Per-share results reflect payment of preferred dividends  
EVEREST AND JENNINGS <EJ.A> QTLY DIVIDEND. Shr five cts vs five cts prior qtr Pay May 15 Record April 22  
PS GROUP INC <PSG> QTLY DIVIDEND. Shr 15 cts vs 15 cts prior qtr Pay May 18 Record April 27  
MONTGOMERY STREET INCOME <MTS> 1ST QTR NET. Shr 49 cts vs 50 cts Net 3,922,533 vs 3,979,580 Note: Full name Montgomery Street Income Securities Inc.  
NCNB CORP <NCB> 1ST QTR NET. Shr 68 cts vs 68 cts Net 53.9 mln vs 53.2 mln Assets 26.5 billion vs 22.2 billion Loans 15.7 billion vs vs 13.3 billion Deposits 13.8 billion vs vs 11.6 billion  
ISC SYSTEMS <ISCS.O> 3RD QTR MARCH 27 NET. Shr seven cts vs 24 cts Net 1,114,000 vs 3,676,000 Revs 43.6 mln vs 41.2 mln Nine mths Shr 25 cts vs 64 cts Net 3,952,000 vs 9,614,000 Revs 118.6 mln vs 119.9 mln  
INDEPENDENT BANK CORP <IBCP.O> 1ST QTR NET. Shr 27 cts vs shr 18 cts Net 477,000 vs 305,000  
CONVERGENT TECHNOLOGIES <CVGT.O> SEES QTR LOSS. Convergent Technologies Inc said it expects to report in the first quarter a loss more than twice the size of the 4.8-mln-dlr loss reported in the fourth quarter of 1986. Convergent reported a first quarter 1986 profit of 2,100,000 dlrs, or five cts per share. The company said results declined in the quarter both in its traditional OEM business and its business systems group. The anticipated loss reflects lower than expected operating margins, start-up costs for new product manufacturing and higher than planned expenses.  
JOHN H. HARLAND CO <JH> 1ST QTR NET. Shr 30 cts vs 25 cts Net 10.5 mln vs 8,697,589 Revs 71.9 mln vs 64.9 mln  
<TRAVELERS REALTY INCOME INVESTORS> 1ST QTR NET. Shr 32 cts vs 38 cts Qtrly div 35 cts vs 35 cts prior Net 731,055 vs 865,117 NOTE: dividend payable May 20 to shareholders of record April 24.  
DEVELCON ELECTRONICS LTD <DLCFF> 2ND QTR LOSS. Period ended Feb 28 Shr loss 34 cts vs loss 58 cts Net loss 1,252,000 vs 2,145,000 Revs 4,539,000 vs 3,504,000 SIX MTHS Shr loss 66 cts vs loss 86 cts Net loss 2,428,000 vs loss 3,163,000 Revs 9,033,000 vs 8,192,000  
VALLEY NATIONAL CORP <VNCP.O> 1ST QTR NET. Shr 1.18 dlrs vs 1.15 dlrs Net 19.7 mln vs 19.3 mln Assets 10.05 billion vs 9.62 billion Deposits 8.56 billion vs 8.04 billion Net loans 6.95 billion vs 6.71 billion  
OTTER TAIL POWER CO <OTTR.O> SETS DIVIDEND. Qtly dividend 73 cts vs 73 cts Pay June 10 Record May 15  
POTLATCH CORP <PCH> 1ST QTR NET. Shr 63 cts vs 47 cts Net 16.8 mln vs 12.4 mln Sales 248.6 mln vs 233.3 mln  
FEDERATED GUARANTY <FDGC.O> SETS STOCK SPLIT. Federated Guaranty corp said its board declared a two-for-one stock split and raised the quarterly dividend to 6-1/2 cts per share post-split from six cts, both payable June One, record May 15. The company said shareholders at the annual meeting approved an increase in authorized common shares to 19 mln from 10 mln and a name change to Alfa Corp.  It said the name change should take effect next week, along with a NASDAQ ticker symbol change to <ALFA.O>.  
UNION PLANTERS CORP <UPCM.O> 1ST QTR NET. Shr 92 cts vs 1.16 dlrs Qtly div 10 cts vs 10 cts prior Net 5,700,000 vs 5,400,000 Avg shrs 6,100,000 vs 3,700,000 NOTE: Dividend pay May 15, record May One.  
PIONEER SAVINGS BANK INC <PSBN.O> 2ND QTR NET. March 31 end Shr 65 cts vs 51 cts Net 1,016,738 vs 526,057 Avg shrs 1,561,774 vs 1,035,162 1st half Shr 1.31 dlrs vs 1.09 dlrs Net 2,050,911 vs 1,130,462 Avg shrs 1,561,643 vs 1,035,162  
MANAGEMENT SCIENCE AMERICA INC <MSAI.O> 1ST QTR. Shr loss 29 cts vs loss two cts Net loss 5,168,000 vs loss 410,000 Revs 46.5 mln vs 29.4 mln Avg shrs 17.6 mln vs 17.1 mln NOTE: Net includes tax credits of 3,938,000 dlrs vs 394,000 dlrs.  
GENERAL HOUSEWARES CORP <GHW> 1ST QTR NET. Shr two cts vs one ct Net 42,000 vs 26,000 Sales 15.6 mln vs 15.2 mln NOTE: 1987 net includes gain 63,000 dlrs from change in pension accounting.  
OAKITE PRODUCTS INC <OKT> 1ST QTR NET. Shr 53 cts vs 48 cts Net 873,000 vs 773,000 Sales 19.5 mln vs 20.0 mln  
BHA GROUP INC <BHAG.O> 2ND QTR MARCH 31 NET. Shr 18 cts vs 15 cts Net 387,000 vs 240,000 Sales 9,346,000 vs 8,579,000 Avg shrs 2,200,000 vs 1,600,000 1st half Shr 36 cts vs 26 cts Net 734,000 vs 410,000 Sales 18.4 mln vs 17.2 mln Avg shrs 2,051,648 vs 1,600,000  
P.A.M. TRANSPORTATION SERVICES INC <PTSI.O> NET. 1st qtr Shr 16 cts vs 10 cts Net 808,850 vs 297,266 Revs 13.9 mln vs 7,588,280 Avg shrs 4,926,566 vs 3,123,411  
FIRST FEDERAL BANK <FFBN.O> 2ND QTR MARCH 31 NET. Shr 84 cts vs 75 cts Net 475,000 vs 425,000 Total income 7,248,000 vs 7,286,000 1st half Shr 1.61 dlrs vs 1.50 dlrs Net 911,000 vs 847,000 Total income 14.6 mln vs 14.2 mln  
GLOBAL NATURAL RESOURCES INC <GNR> 4TH QTR LOSS. Oper shr loss five cts vs loss nil Ope net loss 1,211,000 vs loss 2,000 Revs 6,626,000 vs 11.0 mln Avg shrs 23.2 mln vs 23.5 mln Year Oper shr profit 12 cts vs loss one ct Oper net profit 2,632,000 vs loss 240,000 Revs 34.8 mln vs 52.0 mln Avg shrs 22.9 mln vs 23.4 mln NOTE: Net excludes extraordinary tax charges 1,919,000 dlrs vs 49,000 dlrs in quarter and credits 1,431,000 dlrs vs 2,335,000 dlrs in year.  
FIRST INTERSTATE OF IOWA INC <FIIA.O> 1ST QTR. Shr profit two cts vs loss two cts Net profit 251,000 vs loss 222,000 NOTE: Pretax net profit 295,000 dlrs vs loss 256,000 dlrs. Charge against earnings for loan losses 1,743,000 dlrs vs 2,743,000 dlrs and net chargeoffs 1,636,000 dlrs vs 3,865,000 dlrs.  
DOUBLE EAGLE PETROLEUM AND MINING CO <DBLB.O>. 2nd qtr Feb 28 Shr loss two cts vs loss eight cts Net loss 33,482 vs loss 163,130 Revs 143,961 vs 287,131 1st half Shr loss 14 cts vs loss eight cts Net loss 276,238 vs loss 149,407 Revs 273,737 vs 679,860  
<K-TEL INTERNATIONAL INC> 2ND QTR DEC 31 LOSS. Shr loss two cts vs profit 10 cts Net loss 76,000 vs profit 357,000 Sales 8,987,000 vs 15.3 mln 1st half Shr loss 12 cts vs loss seven cts Net loss 440,000 vs loss 246,000 Sales 13.2 mln vs 20.6 mln  
ELECTROMAGNETIC SCIENCES INC <ELMG.O> 1ST QTR. Shr 20 cts vs 16 cts Net 1,507,000 vs 1,147,000 Sales 13.8 mln vs 9,608,000 Backlog 52.1 mln vs 37.8 mln  
CAPE COD BANK AND TRUST CO <CCBT.O> 1ST QTR NET. Shr 95 cts vs 83 cts Shr diluted 89 cts vs 80 cts Net 2,297,842 vs 1,782,764 Avg shrs 2,408,332 vs 2,160,000 Avg shrs diluted 2,573,908 vs 2,326,667  
CADNETIX CORP <CADX.O> 3RD QTR MARCH 31 NET. Oper shr 12 cts vs five cts Oper net 1,715,000 vs 730,000 Sales 12.1 mln vs 7,719,000 Avg shrs 13.9 mln vs 13.7 mln Nine mths Oper shr 32 cts vs 18 cts Oper net 4,379,000 vs 2,266,000 Sales 32.8 mln vs 23.3 mln Avg shrs 13.8 mln vs 12.4 mln NOTE: prior year net excludes extraordinary credits of 340,000 dlrs in quarter and 1,190,000 dlrs in nine mths.  
BUSH INDUSTRIES INC <BSH> 1ST QTR NET. Shr 44 cts vs 11 cts Net 1,328,000 vs 344,000 Sales 23.0 mln vs 12.3 mln NOTE: Share adjusted for three-for-two stock split in February 1987.  
PLASTI-LINE INC <SIGN.O> 1ST QTR NET. Shr 16 cts vs 16 cts Net 566,000 vs 563,000 Sales 14.2 mln vs 9,831,000  
ENDATA INC <DATA.O> 1ST QTR NET. Oper shr 16 cts vs 11 cts Oper net 660,000 vs 447,000 Revs 9,936,000 vs 9,005,000 NOTE: 1986 net excludes 381,000 dlr tax credit.  
ROTO-ROOTER INC <ROTO> 1ST QTR NET. Shr 20 cts vs 16 cts Net 973,000 vs 775,000 Revs 12.8 mln vs 9,678,000  
<BIRDSBORO CORP> 4TH QTR LOSS. Shr loss 24 cts vs loss 20 cts Net loss 1,718,000 vs loss 1,483,000 Sales 7,266,000 vs 6,490,000 Year Shr loss 1.83 dlrs vs loss 53 cts Net loss 13.2 mln vs loss 3,833,000 Sales 19.1 mln vs 29.5 mln NOTE: 1986 year net includes pretax realized loss on secureity transaction of 4,124,000 dlrs. Net includes tax credits of 751,000 dlrs vs 606,000 dlrs in quarter and 1,163,000 dlrs vs 2,289,000 dlrs in year. 1986 net both periods includes gain 1,887,000 dlrs from pension plan termination.  
DYNAMICS RESEARCH CORP <DRCO.O> 1ST QTR MARCH 21. Shr 17 cts vs 13 cts Net 673,000 vs 514,000 Revs 18.4 mln vs 17.2 mln NOTE: Share adjusted for five-for-four stock split in January 1987.  
MARTIN PROCESSING INC <MPI> 1ST QTR NET. Oper shr 14 cts vs 10 cts Oper net 711,000 vs 517,000 Sales 11.2 mln vs 11.1 mln NOTE: 1986 net excludes 84,000 dlr gain from discontinued machinery division.  
BUSH INDUSTRIES <BSH> SEES HIGHER YEAR RESULTS. Bush Industries Inc said it expects higher earnings and sales for 1987, partly due to efficiencies in manufacturing that have improved its margins. The company reported first quarter earnings of 1,328,000 dlrs, up from 344,000 dlrs a year before, on sales of 23.0 mln dlrs, up from 12.3 mln dlrs.  For all of last year it earned 2,506,000 dlrs on sales of 65.4 mln dlrs.  
J. BILDNER AND SONS INC <JBIL.O> YEAR JAN 25 NET. Shr 13 cts vs three cts Net 617,000 vs 112,000 Sales 31.3 mln vs 11.4 mln Avg shrs 4,877,057 vs 3,310,585 NOTE: 1987 net includes 87,000 dlr tax credit.  
J. BILDNER <JBIL.O> SEES IMPROVED RESULTS. J. Bildner and Sons Inc said it expects improved earnings and sales in the current fiscal year. The company reported earnings for the year ended January 25 of 617,000 dlrsl up from 112,000 dlrs a year before, on sales of 31.3 mln dlrs, up from 11.4 mln dlrs. Bildner also said it plans to offer 25 mln dlrs in Eurodollar convertible subordinated debentures due 2002 through underwriters led by PaineWebber Group Inc <PWJ> and Kidder, Peabody and Co Inc, with proceeds to be used to finance expansion and reduce debt.  
GORMAN-RUPP CO <GRC> SETS QUARTERLY. Qtly div 21 cts vs 21 cts prior Pay June 10 Record May Eight  
LILLY INDUSTRIAL COATINGS INC <LICIA> IN PAYOUT. Qtly div 10-1/2 cts vs 10-1/2 cts prior Pay July One Record June 10  
GRUMMAN CORP <GQ> IN PAYOUT. Qtly div 25 cts vs 25 cts prior Pay May 20 Record May Eight  
AMBRIT INC <ABI> IN PAYOUT. Qtly div two cts vs two cts prior Pay May 22 Record May Eight  
ONEOK INC <OKE> IN PAYOUT. Qtly div 64 cts vs 64 cts prior Pay May 15 Record April 30  
DIAMOND SHAMROCK OFFSHORE PARTNERS <DSP> PAYOUT. Qtly div 70 cts vs 70 cts prior Pay June Eight Record May Eight  
RLC CORP <RLC> 2ND QTR MARCH 31 NET. Shr loss nil vs profit six cts Net loss 89,000 vs profit 1,136,000 Revs 105.0 mln vs 97.,3 mln 1st half Shr loss two cts vs profit 21 cts Net loss 396,000 vs profit 3,790,000 Revs 212.1 mln vs 194.8 mln Avg shrs 18.1 mln vs 18.3 mln NOTE: Current quarter net includes 77,000 dlr tax credit. Current half net includes reversal of 2,622,000 dlrs of investment tax credits.  
FRESH JUICE CO INC <FRSH.O> 1ST QTR FEB 28 NET. Shr loss five cts NEt loss 90,066 Sales 328,127 NOTE: Company began opeations in April 1986.  
CHURCH'S FRIED CHICKEN INC <CHU> 1ST QTR NET. Shr one ct vs 14 cts Qtly div 11-1/2 cts vs 11-1/2 cts prior Net 411,000 vs 5,299,000 Revs 88.5 mln vs 108.4 mln NOTE: Dividend pay May 18, record May One.  
DOMINION RESOURCES INC <D> 1ST QTR NET. Shr 1.31 dlrs vs 1.03 dlrs Net 123 mln vs 95 mln Revs 831 mln vs 764 mln Avg shrs 94 mln vs 91 mln 12 mths Shr 4.38 dlrs vs 3.68 dlrs Net 409 mln vs 331 mln Revs 3.14 billion vs 2.77 billion Avg shrs 93 mln vs 90 mln  
CALNY INC <CLNY> SETS QUARTERLY. Qtly div four cts vs four cts prior Pay May 13 Record April 29  
ROWAN <RDC> SEES SUBSTANTIAL LOSSES FOR YEAR. Rowan Cos Inc said it expects to incur substantial losses in 1987 despite expected improvement in drilling levels in the Gulf of Mexico and the North Sea. The offshore and onshore drilling company today reported a first quarter loss of 18.6 mln dlrs after a 12.2 mln dlr tax credit, compared with a year-earlier loss of 5,855,000 dlrs after a tax credit of 8,510,000 dlrs.  For all of 1986, Rowan lost 42.1 mln dlrs after a 47.6 mln dlr tax credit.  
ROWAN COS INC <RDC> 1ST QTR LOSS. Shr loss 36 cts vs loss 11 cts Net loss 18.6 mln vs loss 5,855,000 Revs 23.9 mln vs 53.9 mln NOTE: Net includes tax credits of 12.2 mln dlrs vs 8,510,000 dlrs.  
CARE ENTERPRISES <CRE> 4TH QTR LOSS. Oper shr loss 64 cts vs profit 11 cts Oper net loss 7,229,000 vs profit 902,000 Revs 67.6 mln vs 66.7 mln Avg shrs 11.3 mln vs 8,507,000 Year Oper shr loss 63 cts vs profit 43 cts Oper net loss 6,177,000 vs profit 3,604,000 Revs 264.8 mln vs 238.5 mln Avg shrs 9,827,000 vs 8,403,000 NOTE: 1986 quarter net includes 731,000 dlr tax credit. 1986 net excludes charges from debt restructuring of 1,976,000 dlrs in quarter and 3,800,000 dlrs in year.  
LANCE INC <LNCE> 1ST QTR NET. Shr 56 cts vs 46 cts Qtly div 29 cts vs 27 cts prior Net 9,089,000 vs 7,585,000 Sales 86.8 mln vs 83.0 mln NOTE: Pay May 15, record May One.  
FHLBB REPORTS THRIFT RESULTS IN FOURTH QUARTER. The Federal Home Loan Bank Board said its insured savings and loan associations (thrifts) that made a profit in the fourth quarter of 1986 reported moderate increases in net earnings. It said that the 74 pct of the thrifts reporting profits had net after-tax income of 2.3 billion dlrs, up from 2.0 billion dlrs earned by 77 pct of the profitable industry in the third quarter. For 1986 as a whole, the profitable firms had a net income of 9.2 billion dlrs, up from 7.3 billion dlrs in 1985. It said the 26 pct of the industry that made no profit in the fourth quarter had losses of 3.2 billion dlrs. The figure for the unprofitable firms was up from 2.1 billion dlrs in the third quarter of 1986, it said. Over the year, these firms had total losses of 8.3 billion dlrs, up from 3.6 billion dlrs in 1985.  
COMMUNICATIONS SATELLITE CORP <CQ> 1ST QTR NET. shr 46 cts vs 76 cts div 30 cts vs 30 cts prior net 8.5 mln vs 14.0 mln NOTE: 1987 qtr net is after a 5.5 mln dlr reserve for a potential refund as a result of the Federal Communications Commission's continuing rate investigation. company said it believes any refunds it may have to make would not materially affect its financial position.  
AMERICAN MANAGEMENT SYSTEMS <AMSY.O> 1ST QTR NET. shr 21 cts vs 18 cts net 1,068,000 vs 902,000 revs 38.1 mln vs 29.7 mln avg shrs 5,177,000 vs 5,120,000 NOTE: shr reflects 2-for-1 stock split on June 9, 1986  
HYTEK MICROSYSTEMS INC <HTEK.O> 1ST QTR LOSS. shr loss 17 cts vs loss 14 cts net loss 467,000 vs loss 400,000 revs 3,856,000 vs 3,423,000 avg shrs 2,821,000 vs 2,797,000  
TVI CORP <TVIE.O> YEAR 1986 LOSS. shr loss 38 cts vs profit two cts net loss 2,254,533 vs profit 106,621 revs 3,430,970 vs 4,104,506  
RIGGS NATIONAL CORP <RIGS.O> 1ST QTR NET. shr 73 cts vs 1.03 dlrs net 10,245,000 vs 12,364,000 avg shrs 13,981,024 vs 11,968,524 assets 6.07 billion vs 5.22 billion loans 2.92 billion vs 2.45 billion deposits 4.78 billion vs 4.14 billion NOTE: gain from sale of securities 4.6 mln vs 12.8 mln. loan loss provision 100,000 dlrs vs 7.7 mln  
NORTHWEST NATURAL GAS CO <NWNG.O> 1ST QTR NET. shr 1.35 dlrs vs 1.27 dlrs div 39 cts vs 39 cts prior net 14,291,000 vs 13,211,000 revs 52.6 mln vs 51.1 mln avg shrs 10,234,000 vs 9,936,000  
KIMBARK OIL AND GAS CO <KIMB.O> 1986 YEAR LOSS. shr loss 57 cts vs loss 2.88 dlrs net loss 3,442,000 vs loss 13,750,000  
SOUTHERN NATIONAL CORP <SNAT.O> 1ST QTR NET. shr 47 cts vs 46 cts net 3,470,859 vs 3,454,577  
SOUTHAM INC <STM.TO> 1ST QTR NET. Oper shr 32 cts vs 37 cts Oper net 18.9 mln vs 21.6 mln Revs 352.1 mln vs 323.0 mln Note: 1987 net excludes extraordinary gain of 2.8 mln dlrs or five cts shr from sale of surplus property.  
LOCTITE CORP <LOC> 3RD QTR MARCH 31 NET. Shr 96 cts vs 53 cts Net 8,663,000 vs 4,798,000 Revs 89.7 m ln vs 66.8 mln Nine mths Shr 2.33 dlrs vs 1.67 dlrs Net 21.1 mln vs 15.1 mln Revs 241.3 mln vs 192.8 mln  
GLENFED INC <GLN> 3RD QTR MARCH 31 NET. Oper shr 1.54 dlrs vs 82 cts Oper net 33.7 mln vs 17.66 mln Revs 473.1 mln vs 419.0 mln Nine mths Oper shr 4.60 dlrs vs 2.39 dlrs Oper net 100.4 mln vs 51.0 mln Revs 1.38 billion vs 1.21 billion Assets 18.5 billion vs 15.5 billion Deposits 13.00 billion vs 11.29 billion Loans 15.04 billion vs 12.56 billion Note: Oper net excludes extraordinary loss 6,636,000 and 11.9 mln for 1987 qtr and nine mths on prepayment of borrowings from the Federal Home Loan Bank Board. Oper also excludes tax credits of 15.8 mln vs 5,954,000 for qtr and 17.8 mln vs 11.6 mln for nine mths.  
HORIZON INDUSTRIES INC <HRZN> 2ND QTR NET. Qtr ended April four Shr profit eight cts vs loss 22 cts Net profit 341,000 vs loss 903,000 Revs 58.4 mln vs 46.3 mln Six mths Shr profit 35 cts vs loss 19 cts Net profit 1,466,000 vs loss 767,000 Revs 121.4 ln vs 95.9 mln  
RORER GROUP INC <ROR> 1ST QTR NET. Oper shr profit 34 cts vs loss 78 cts Oper net profit 7,434,000 vs loss 17.0 mln Revs 201.2 mln vs 171.7 mln Note: Year-ago oper exludes gain on sale of businesses of 139.6 mln. Year-ago oper includes charges of 27.8 mln resulting from allocation of the purchase price of Revlon's businesses to inventory and 7.1 mln for restructuring costs.  
TOSHIBA CORP <TSBA.T> YEAR ENDED MARCH 31. Group shr 11.86 yen vs 19.24 Net 34.18 billion vs 59.44 billion Pretax 78.02 billion vs 130.52 billion Operating 51.58 billion vs 121.50 billion Sales 3,308 billion vs 3,373 billion  
GENOVESE DRUG STORES INC <GDXA.O> 1ST QTR MAY 22. Shr 23 cts vs seven cts Net 911,000 vs 293,000 Sales 88.1 mln vs 74.8 mln  
ADVANCED SYSTEMS INC<ASY> 2ND QTR APRIL 30 NET. Shr 32 cts vs 22 cts Net 2,022,000 vs 1,355,000 Revs 16.0 mln vs 13.2 mln Avg shrs 6,237,000 vs 6,052,000 Six mths Shr 58 cts vs 42 cts Net 3,561,000 vs 2,525,000 Revs 30.0 mln vs 26.1 mln Avg shrs 6,180,000 vs 6,017,000  
MANNVILLE OIL AND GAS LTD <MOG.TO> 1ST QTR NET. Shr two cts vs seven cts Net 164,000 vs 417,000 Revs 1,345,000 vs 2,021,000  
HOUSE OF FABRICS INC <HF> 1ST QTR NET APRIL 30. Shr 27 cts vs 18 cts Net 1,757,000 vs 1,201,000 Revs 73.5 mln vs 71.2 mln  
ORBIT OIL AND GAS LTD <ORB.TO> 1ST QTR NET. Shr three cts vs three cts Net 421,000 vs 333,000 Revs 2,103,000 vs 2,287,000 Avg shrs 16,068,000 vs 12,041,000  
BERKSHIRE GAS CO <BGAS.O> RAISES PAYOUT. Qtly div 30-1/2 cts vs 28-1/2 cts prior Pay July 15 Record June 30  
MARCADE GROUP INC <MAR> 1ST QTR MAY 2 NET. Shr four cts vs 10 cts Shr diluted two cts vs 10 cts Net 1,841,000 vs 978,000 Revs 36.1 mln vs 20.5 mln Avg shrs 25,734,000 vs 9,200,000 Avg shrs diluted 48,878,000 vs 9,200,000  
GREENMAN BROS INC <GMN> 1ST QTR MAY 2 LOSS. Shr loss 52 cts vs loss 49 cts Net loss 3,142,000 vs loss 2,936,000 Sales 40.9 mln vs 40.1 mln NOTE: Year ago share results adjusted for five-for-four stock split in August 1986  
CONSOLIDATED PROFESSOR <CPF.TO> 1ST QTR NET. Shr profit one ct vs nil Net profit 163,016 vs loss 23,527 Revs 250,469 vs 48,473 Note: Full name Consolidated Professor Mines Ltd.  
DETECTION SYSTEMS <DETC.O> YEAR END MARCH 31. Shr 36 cts vs nil Net 713,000 vs 1,500 Revs 13 mln vs 9,328,000  
J. BILDNER AND SONS INC <JBIL.O> 1ST QTR. Shr one ct vs nil Net 32,345 vs 3,772 Revs 9,946,578 vs 5,939,252  
FIAT UNIT FIDIS REPORTS SHARPLY HIGHER 1986 PROFIT. Year 1986 Net profit 132 billion lire vs 82 billion Ordinary share dividend 500 lire vs 400 Note - <Finanziaria Di Sviluppo Spa>, a financial services subsidiary of Fiat Spa <FIAT.MI>, said in a statement that shareholders approved a previously announced nominal share capital increase from 125 billion lire to 250 billion.  
HAWKINS CHEMICAL INC<HWKN.O> 2ND QTR MAR 31 NET. Shr 12 cts vs six cts Net 398,318 vs 211,801 Sales 7,385,107 vs 7,275,162 Six Mths Shr 22 cts vs 13 cts Net 736,219 vs 446,288 Sales 14.3 mln vs 14.2 mln NOTE: Per share earnings adjusted for ten pct stock dividend paid February 1987.  
COMPTEK RESEARCH INC <CMTK.O> 4TH QTR MARCH 31. Shr 17 cts vs four cts Net 373,000 vs 82,000 Sales 10.1 mln vs 7,825,000 Year Shr 45 cts vs 27 cts Net 981,000 vs 595,000 Sales 34.5 mln vs 28.5 mln  
DATAFLEX CORP <DFLX.O> 4TH QTR MARCH 31 NET. Shr 11 cts vs eight cts Net 248,000 vs 155,000 Revs 4,385,000 vs 2,487,000 Year Shr 36 cts vs 12 cts Net 720,000 vs 220,000 Revs 15.2 mln vs 9,253,000 NOTE: Share adjusted for 10 pct stock dividend in April 1987.  
POLYDEX PHARMACEUTICALS LTD <POLXF.O> 1ST QTR. April 30 end Shr loss one ct vs loss two cts Net loss 83,116 vs loss 266,037 Sales 1,393,455 vs 1,035,500  
GEODYNE RESOURCES INC <GEOD.O> 4TH QTR FEB 28. Shr profit three cts vs profit 31 cts Net profit 330,;575 vs profit 1,4;73,100 Revs 1,501,996 vs 2,602,568 Avg shrs 10,964,786 vs 4,446,958 Year Shr loss eight cts vs profit six cts Net loss 91,523 vs profit 746,289 Revs 3,854,821 vs 5,231,598 Avg shrs 6,091,334 vs 4,446,958 NOTE: Share results after preferred dividend requirements of 44,174 dlrs vs 99,901 dlrs in quarter and 377,111 dlrs vs 480,851 dlrs in year Company 40 pct owned by PainWebber Group Inc <PWJ>  
UNITED TOTE INC <TOTE.O> 2ND QTR APRIL 30. Shr profit four cts vs profit three cts Net profit 64,197 vs profit 56,437 Revs 4.9 mln vs 1.6 mln Six months Shr profit four vs loss seven cts Net profit 67,133 vs loss 114,427 Revs 9.1 mln vs 2.8 mln NOTE:1987 first half includes revnues of new racetrack operation.  
<GRAND UNION CO> 4TH QTR MARCH 28 NET. Net 7,237,000 vs 5,938,000 Sales 630.8 mln vs 601.8 mln Year Net 34.1 mln vs 20.5 mln Sales 2.75 billion vs 2.61 billion NOTE: Twelve and 52-week periods. Generale Occidentale SA subsidiary. Prior year net both periods includes 7,580,000 dlr pretax charge for store closings. Year net includes pension gain 3,455,000 dlrs vs charge 5,502,000 dlrs due to change in pension accounting. Income tax rate for year 45.9 pct vs 34.1 pct due to abolition of investment tax credits.  Elimination of investment tax credits approximately offset gain from change in pension accounting, company said.  
HUGHES SUPPLY INC <HUG> 1ST QTR APRIL 30 NET. Shr 58 cts vs 53 cts Shr diluted 54 cts vs 53 cts Net 1,957,745 vs 1,594,009 Sales 95.8 mln vs 87.4 mln NOTE: Average shares up 11.7 pct on primary basis.  
MERRILL CORP <MRLL.O> 1ST QTR APRIL 30 NET. Shr 21 cts vs 20 cts Net 965,000 vs 726,000 Revs 13.4 mln vs 11.8 mln Avg shrs 4,606,242 vs 3,624,528  
ODETICS INC <OA/OB> 4TH QTR MARCH 31 NET. Shr seven cts vs eight cts Net 278,000 vs 340,000 Revs 11.4 mln vs 8,871,000 Year Shr three cts vs one ct Net 113,000 vs 33,000 Revs 39.7 mln vs 33.1 mln  
BRITISH LAND OF AMERICA INC <BLA> YEAR MARCH 31. Shr loss 36 cts vs loss 57 cts Net loss 4,589,000 vs loss 7,339,000 Revs 19.9 mln vs 19.6 mln Avg shrs 14.7 mln vs 13.3 mln NOTE: Company is a subsidiary of <British Land Co PLC>  
INTERNATIONAL CORONA <ICR.TO> 2ND QTR NET. Period ended March 31 Oper shr profit four cts vs loss 17 cts Oper net profit 584,000 vs loss 2,165,000 Revs 7,493,000 vs not given SIX MTHS Oper shr profit eight cts vs loss 14 cts Oper net profit 1,177,000 vs loss 1,778,000 Revs 14.8 mln vs not given.  
ROYEX GOLD MINING <RGM.TO> 2ND QTR MARCH 31 NET. Oper shr loss three cts vs loss one ct Oper net loss 1,796,000 vs loss 381,000 Revs 2,501,000 vs 2,695,000 SIX MTHS Oper shr loss eight cts vs loss four cts Oper net loss 3,235,000 vs loss 1,123,000 Revs 4,850,000 vs 4,551,000 Note: 1987 net excludes 2nd qtr extraordinary gain of 87 mln dlrs or 1.54 dlrs shr from sale of 51 pct stake of Mascot Gold Mines Ltd <MSG.TO>. Full name Royex Gold Mining Corp.  
DIANA CORP <DNA> YEAR MARCH 28 OPER NET. Oper shr 74 cts vs 30 cts Oper net 3,034,000 vs 1,225,000 NOTE: 1987 operating net excludes credits of 1,043,000 dlrs or 25 cts a share. 1986 operating net excludes discontinued operations of 84,000 dlrs or two cts, and extraordinary charges of 1,119,000 dlrs or a loss of 27 cts.  
MCLAIN INDUSTRIES INC <MCCL.O> 2ND QTR MARCH 31. Shr 11 cts vs 13 cts Net 234,326 vs 266,653 Revs 5.5 mln vs 5.8 mln Six months Shr 21 cts vs 31 cts Net 445,509 vs 646,978 Revs 9.4 mln vs 10.8 mln  
PHILLIPS-VAN HEUSEN CORP <PVH> 1ST QTR. Shr 73 cts vs 60 cts Net 4.6 mln vs 3.8 mln Revs 112.8 mln vs 104.1 mln NOTE:1987 includes lifo charge of 1.5 mln dlrs, pension expenses declined by 879,000 dlrs due to change in accounting, interest decreased by 382,000 dlrs.  
INTERNATIONAL CONSUMER BRANDS <ICBI.O> 1ST QTR. Shr profit one cts vs loss three cts Net profit 68,607 vs loss 183,893 Revs 4.2 mln vs 602,665  
CHARTER POWER SYSTEMS INC <CHP> 1ST QTR. Shr 11 cts vs 21 cts Net 563,000 vs 863,00 Revs 28.8 mln vs 32.5 mln Avg shrs 5.0 mln vs 3.3 mln  
CROP GENETICS INTERNATIONAL <CROP.O> 4TH QTR. 4th qtr ended March 31. Shr loss 24 cts vs loss 19 cts Net loss 751,900 vs loss 569,000 Revs 497,500 vs 811,400 Year Shr loss 1.13 dlrs vs loss 70 cts Net loss 3,472,700 vs 1,990,300 Revs 2,484,100 vs 2,498,300  
FUJITSU LTD <ITSU.T> GROUP YEAR ENDED MARCH 31. Group shr - 13.56 yen vs 27.06 Net - 21.61 billion vs 38.93 billion Current - 37.66 billion vs 46.70 billion Operating - 57.37 billion vs 79.91 billion Sales - 1,789 billion vs 1,692 billion  
STOREHOUSE REPORTS HIGHER PROFITS IN 1986/87. 53 weeks to April 4, 1987 Share - basic 22.2p vs 21.6p - fully-diluted 21.6p vs 19.9p Final dividend 6.3p vs 5.7p, making 8.6p vs 7.7p Pretax profits 129.2 mln stg vs 116.0 mln Turnover 1,088.1 mln stg vs 968.4 mln Profit from retail operations 133.3 mln stg vs 115.6 mln Tax 40.1 mln stg vs 36.5 mln Profit after tax 89.1 mln stg vs 79.5 mln Extraordinary items debit 0.7 mln stg vs debit 24 mln NOTE - full name is Storehouse Plc <STHL.L>  
NORCROS PROFITS ADVANCE IN 1986/87. Year to March 31 Shr 28.0p vs 21.4p Final dividend 9p vs 6.5p making 12p vs 9.3p Pretax profit 53.16 mln stg vs 45.12 mln Turnover 641.1 mln stg vs 639.7 mln Group operating profit 57.63 mln stg vs 49.06 mln Share of associates' profits 1.33 mln stg vs 3.87 mln Investment income 1.59 mln stg vs 2.19 mln Interest payable 7.38 mln stg vs 10.01 mln Tax 16.48 mln stg vs 17.60 mln Leaving 36.68 mln vs 27.51 Minorities debit 1.58 mln stg vs debit 1.39 mln Extraordinary items credit 2.95 mln stg vs debit 8.12 mln Operating profits breakdown, by class of business, - building materials manufacture 23.7 mln stg vs 20.9 mln - distribution 10.1 mln stg vs 7.5 mln - specialist print and pack 12.6 mln stg vs 9.6 mln - international 6.0 mln stg vs 5.6 mln - head office and property 4.6 mln stg vs 3.6 mln - discontinued, sold businesses 589,000 stg vs 2.4 mln Operating profits, geographic breakdown: - Britain 51.4 mln stg vs 43.3 mln - Africa 3.3 mln stg vs 3.4 mln - Australasia 1.4 mln stg vs 854,000 stg - North America 1.5 mln stg vs 1.6 mln NOTE - full name is Norcros Plc <NCRO.L>.  
DE LA RUE RAISES ANNUAL PROFITS BY 12.7 PCT. Year ended March 31, 1987 Fin div 9.25p making 12p vs 10.74p Shr 28.3p vs 27.5p Pretax profit 55.63 mln stg vs 49.36 mln Net 38.80 mln vs 33.64 mln Turnover 444.10 mln vs 309.85 mln Net interest payable 3.50 mln vs 3.79 mln Profit share of related companies 7.62 mln vs 9.64 mln Note - The De La Rue Co. Plc <DLAR.L> proposes to offer ordinary shareholders the opportunity to receive their dividends in the form of new shares as an alternative to cash.  
HANSON TRUST SHOWS SHARPLY HIGHER HALF-YEAR PROFIT. Six months ended March 31, 1987 Share 6.0p vs 4.1p, diluted Interim dividend 1.4p vs 1.05p Pre-tax profit 312 mln stg vs 158 mln Net profit 234 mln vs 114 mln Sales 3.47 billion vs 1.55 billion Operating profit 296 mln vs 164 mln Interest and other income less central expenses credit 16 mln vs debit six mln Company's full name is Hanson Trust Plc <HNSN.L>. U.K. Operating profit by sector - Consumer goods 123 mln stg vs 32 mln Building products 31 mln vs 26 mln Industrial 14 mln vs same Food 20 mln vs nil. U.S. Sectors - Consumer goods 25 mln stg vs 20 mln Building products 29 mln vs 25 mln Food seven mln vs two mln Businesses owned in 1986 and sold during 1987 nil vs nine mln.  
HARNISCHFEGER INDUSTRIES INC <HPH> 2ND QTR NET. April 30 end Oper shr 20 cts vs 19 cts Oper net 4,625,000 vs 6,781,000 Sales 250.2 mln vs 150.9 mln Orders 351.5 mln vs 122.5 mln 1st half Oper shr 29 cts vs 26 cts Oper net 7,453,000 vs 12.0 mln Sales 441.1 mln vs 255.6 mln Orders 576.6 mln vs 221.1 mln Backlog 848.3 mln vs 459.2 mln NOTE: Prior year net excludes losses from discontinued operations of 32.9 mln dlrs in quarter and 35.7 mln dlrs in half. Net excludes tax credit 2,540,000 dlrs vs credit reversal 2,300,000 dlrs in quarter, credit 5,500,000 dlrs vs nil half. Results include Syscom Corp from December 30, 1986 purchase and Beloit Corp from March 31, 1986 purchase.  Orders exclude 253.6 mln dlrs acquired with Syscon acquisition. Backlog at January 31 747 mln dlrs. Average shares 21.5 mln vs 13.3 mln in quarter and 18.9 mln vs 13.3 mln in half. Income tax provisions 2,200,000 dlrs vs 3,450,000 dlrs in quarter and 6,200,000 dlrs vs 7,225,000 dlrs in half.  Current quarter tax rate of 27.5 pct benefited from Wisconsin Department of Revenue Decision, the company said.  
SEAL INC <SINC.O> 2ND QTR APRIL 30 NET. Shr profit 29 cts vs loss six cts Net profit 645,000 vs loss 118,000 Sales 7,802,000 vs 4,330,000 1st half Shr profit 58 cts vs profit 10 cts Net profit 1,255,000 vs profit 212,000 Sales 14.5 mln vs 8,912,000 Avg shrs 2,183,150 vs 2,072,779  
DEL E. WEBB INVESTMENT PROPERTIES INC <DWPA.O>. 1st qtr Shr seven cts vs nine cts Net 166,000 vs 201,000 Revs 801,000 vs 687,000  
ONCOR INC <ONCR.O> 1ST QTR LOSS. Shr loss 12 cts vs loss five cts Net loss 347,849 vs loss 103,489 Sales 222,697 vs 150,534  
COMP-U-CARD INTERNATIONAL INC <CUCD.O> 1ST QTR. Periods ended April 30 Shr 18 cts vs 15 cts Net 3,309,000 vs 2,539,000 Revs 45.2 mln vs 26.8 mln Avg shrs 18.7 mln vs 16.8 mln NOTE: 1986 net includes gain of 1,197,000 dlrs, or seven cts a share, from tax loss carryforwards  
PEP BOYS - MANNY, MOE AND JACK INC <PBY> 1ST QTR. May Two net Shr 11 cts vs eight cts Net 5,895,000 vs 3,896,000 Sales 127.3 mln vs 110.5 mln NOTE: Share adjusted for three-for-one stock split payable July 27 to holders of record July One.  
PHH GROUP INC <PHH> 4TH QTR APRIL 30 NET. Shr 71 cts vs 47 cts Net 12.1 mln vs 7.8 mln Revs 369.8 mln vs 307.9 mln 12 mths Shr 2.35 dlrs vs 2.33 dlrs Net 39.5 mln vs 39 mln Revs 1.36 billion vs 1.24 billion NOTE: Prior year restated to reflect results from current year acquisitions.  
GULF AND WESTERN INC <GW> 2ND QTR APRIL 30 NET. Shr 86 cts vs 73 cts Net 52.7 mln vs 45.7 mln Revs 989.9 mln vs 863.9 mln Six mths Shr 1.97 dlrs vs 1.28 dlrs Net 122 mln vs 79.9 mln Revs 2.078 billion vs 1.726 billion  
UNITED FINANCIAL BANKING <UFBC.O> 1ST QTR NET. Shr four cts vs 21 cts Net 29,862 vs 152,826 NOTE: Full name is United Financial Banking Cos Inc. Net includes loan loss provision nil vs 40,000 dlrs.  
BROWN GROUP INC <BG> 1ST QTR MAY 2 NET. Shr 56 cts vs 42 cts Net 10,030,000 vs 7,833,000 Sales 392.1 mln vs 339.6 mln Avg shrs 17,966,000 vs 18,709,000  
NORTHWEST TELEPRODUCTIONS <NWTL.O> 4TH QTR NET. Shr 15 cts vs 16 cts Net 239,034 vs 264,485 Sales 2,932,782 vs 2,664,853 Year Shr 57 cts vs 45 cts Net 929,524 vs 741,121 Sales 10.9 mln vs 9,708,792  
ROYAL BANK OF CANADA (RY.TO) 2ND QTR APRIL 30 NET. Shr basic 83 cts vs 1.05 dlrs Shr diluted 80 cts vs 96 cts Net 116,157,000 vs 125,146,000 Six mths Shr basic 1.71 dlrs vs 2.27 dlrs Shr diluted 1.63 dlrs vs 2.06 dlrs Net 230,265,000 vs 265,535,000 Loans 67.93 billion vs 65.50 billion Deposits 83.71 billion vs 84.25 billion Assets 100.00 billion vs 97.50 billion Avg shrs 116.4 mln vs 102.1 mln  
AEP INDUSTRIES INC <AEPI.O> 2ND QTR APRIL 30. Shr 21 cts vs 11 cts Net 638,000 vs 340,000 Sales 16.9 mln vs 14.7 mln Avg shrs 3,007,048 vs 3,006,250 1st half Shr 41 cts vs 41 cts Net 1,224,000 vs 1,142,000 Sales 31.1 mln vs 29.8 mln Avg shrs 3,006,704 vs 2,757,631 NOTE: Current year net both periods includes nonrecurring gain 213,000 dlrs.  
BURLINGTON COAT FACTORY <BCF> 2ND QTR NET. quarter ended May 2 Shr 20 cts vs 17 cts Net 2,319,000 vs 1,950,000 Sales 92.4 mln vs 72.2 mln Six mths Shr 1.60 dlrs vs 1.27 dlrs Net 18.7 mln vs 14.8 mln Sales 285.9 mln vs 227.1 mln NOTE: Full name is Burlington Coat Factory Warehouse Corp.  
CML GROUP INC <CMLI.O> 3RD QTR NET. qtr ended May 2 Shr 29 cts vs 22 cts Net 1,975,000 vs 1,403,000 Revs 68.1 mln vs 54.0 mln Avg shrs 6,722,527 vs 6,597,492 Nine mths Shr 1.17 dlrs vs 92 cts Net 7,847,000 vs 6,017,000 Revs 209.7 mln vs 175.7 mln Avg shrs 6,687,138 vs 6,549,197  
NODAWAY VALLEY CO <NVCO.O> 1ST QTR NET. qtr ended April 30 Shr seven cts vs 10 cts Net 158,294 vs 234,829 Revs 8,727,242 vs 8,152,478  
GAMMA BIOLOGICALS INC <GAMA.O> 4TH QTR MARCH 31. Shr profit four cts vs loss 47 cts Net profit 209,000 vs loss 2,164,000 Sales 4,849,000 vs 3,682,000 Year Shr loss 10 cts vs loss 52 cts Net loss 451,000 vs loss 2,378,000 Sales 18.0 mln vs 15.8 mln  
LONDON HOUSE INC <LOND.O> YEAR APRIL 30 NET. Shr 33 cts vs 26 cts Net 489,351 vs 430,143 Revs 6,961,091 vs 6,009,026 Avg shrs 1.5 mln vs 1.6 mln  
MUNICIPAL FINANCIAL CORP <MFC.TO> SIX MTHS NET. Period ended April 30 Shr 71 cts vs 42 cts Shr diluted 62 cts vs 38 cts Net 2,629,704 vs 1,721,384 Revs 39.5 mln vs 32.0 mln  
COMMONWEALTH MORTGAGE <CCMC.O> 4TH QTR NET. Qtr ends April 30 Shr 32 cts vs 20 cts Net 1,981,681 dlrs vs 1,022,451 dlrs Avg shrs 6,220,000 vs 5,120,000 12 mths Shr 1.22 dlrs vs 59 cts Net 7,005,000 dlrs vs 3,030,000 dlrs Avg shrs 5,737,808 vs 5,120,000 NOTE: full name of company is commonwealth mortgage co inc.  
AARON RENTS INC <ARON.O> YEAR NET. year ended March 31 Shr 91 cts vs 1.08 dlrs Net 4,800,000 vs 5,800,000 Rev 118.7 mln vs 110.3 mln  
TIMBERLINE INDUSTRIES INC <TIMB.O> 1ST QTR NET. Oper shr eight cts vs two cts Oper net 119,000 vs 32,000 Sales 12.0 mn vs 11.3 mln Note: Current qtr figures exclude loss from discontinued operations of 30,000 dlrs, or two cts per share, vs loss of 54,000 dlrs, or four cts per share.  
TEXAS AMERICAN ENERGY CORP <TAE> 1ST QTR. Shr 42 cts vs 22 cts Net 3,445,000 vs 2,326,000 Revs 41.7 mln vs 51.5 mln  
INTERMETCO LTD <INT.TO> SIX MTHS APRIL 30 NET. Shr 18 cts vs 27 cts Net 283,000 vs 435,000 Revs 97.8 mln vs 95.1 mln  
<IONE INC> SIX MONTHS MARCH 31 NET. Shr two cts vs n.a. Net 68,281 Revs 639,471 NOTE: Company became public in March 1987  
ATLAS YELLOWKNIFE <AY.TO> SIX MTHS LOSS. Period ended March 31 Shr loss nil vs profit one ct Net loss 36,000 vs profit 310,000 Revs 1,172,000 vs 1,686,000 Note: Full name Atlas Yellowknife Resources Ltd.  
WOODWARD'S LTD <WDSA.TO> 1ST QTR MAY 2 LOSS. Shr loss 32 cts vs loss 37 cts Net loss 5,374,000 vs loss 6,159,000 Revs 241.3 mln vs 253.2 mln  
COMMONWEALTH MORTGAGE CO INC <CCMC.O> 4TH QTR. Qtr ended April 30. Shr 32 cts vs 20 cts Net 1,982,000 vs 1,022,000 Year Shr 1.22 dlrs vs 59 cts Net 7,005,000 vs 3,030,000 Assets 191.3 mln vs 116.5 mln  
MINNTECH CORP <MNTX.O> 4TH QTR MAR 31 NET. Opr shr nil vs seven cts Opr net 3,000 vs 99,000 Revs 2,745,000 vs 2,395,000 Avg shrs 1,500,000 vs 1,375,000 Year Opr shr 24 cts vs 20 cts Opr net 343,000 vs 271,000 Revs 10.7 mln vs 8,232,000 Avg shrs 1,459,000 vs 1,341,000 NOTE: Earnings for year exclude gains due to tax loss carryforward of 210,000 dlrs or 14 cts a share in 1987 and 198,000 dlrs or 15 cts in 1986.  
COMP-U-CARD INTERNATIONAL INC <CUCD.O> 1ST QTR. Shr 18 cts vs 15 cts Net 3.3 mln vs 2.5 mln Revs 45.2 mln vs 26.8 mln NOTE:1986 net includes seven cts or 1.2 mln dlrs tax loss carryforward.  
MERCHANTS <MCHN.O> TO REPORT 2ND QTR LOSS. Merchants National Corp, with 3.7 billion dlrs in assets, said it will report a loss of 13 mln dlrs for the second quarter due to its decision to increase its provision for losses by 30 mln dlrs, mainly due to uncertainties surrounding Latin American debt. In the second quarter last year, Merchants reported net income of 6.2 mln dlrs or 68 cts a share. As a result of the increased loan loss provision, the bank said the allowance for loan losses will increase from 1.4 pct to 2.5 pct of the bank's total loans. The bank said its expects to report estimated net of over 15 mln dlrs for 1987.  
MAZDA MOTOR CORP <MAZT.T>. Six months ended April 30 Parent shr 1.66 yen vs 7.28 Div 3.50 yen vs same Net 1.59 billion vs 6.88 billion Current 5.03 billion vs 16.03 billion Sales 804.02 billion vs 839.20 billion Oustanding shrs 955.00 mln vs 944.15 mln  
BERISFORD LIFTS FIRST HALF PROFIT 2.5 MLN STG. six months to March 31 Shr 16.25p vs 15.61p Div 4.0p vs 3.5p Turnover 6.12 billion vs 4.89 billion Interest 25.2 mln vs 37.6 mln Pretax profit 42.7 mln vs 40.3 mln Tax 10.3 mln vs 9.9 mln Minorities 1.3 mln vs 439,000 Extraordinary items 2.6 mln credit vs 1.2 mln debit Note - company name is S and W Berisford Plc <BRFD.L>  
BRITISH TELECOM RAISES 1986/87 PROFIT 11.7 PCT. Year to end-March Shr 20.9p, a 22.3 pct rise Div 5.1p making 8.45p vs vs 7.5p Turnover 9.42 billion, a 12.4 pct increase Operating profit 2.35 billion, a 10.9 pct increase Pretax profit 2.07 billion, a 11.7 pct rise Fourth quarter 1987 Turnover 2.42 billion, a 8.4 pct rise Operating profit 629.0 mln, a 12.1 pct increase Pretax profit 555.0 mln, a 11.7 pct rise.  
JOHNSON MATTHEY RAISE PRETAX PROFITS BY 67.8 PCT. Year to March 31 Fin div 3.5p making 5.5p vs 2.5p Shr 25.2p vs 14.7p Pretax profit 50.5 mln stg vs 30.1 mln Net after tax 36.0 mln vs 21.6 mln Turnover 1.22 billion vs 1.16 billion Extraordinary dbt 10.3 mln vs 8.2 mln Note - Full company name is <Johnson-Matthey Plc>.  
LONDON INTERNATIONAL RAISE PROFITS BY 3.05 MLN. Year to March 31 Final dividend 3.65p vs 3.1p making 5.4p vs 4.6p Share 14.11p vs 12.13p Pre-tax profit 27.11 mln stg vs 24.06 mln Net profit 18.12 mln vs 15.21 mln Turnover 252.11 mln vs 225.29 mln Note - London International Group Plc <LONL.L> said that sharply increased sales of condoms had led to a particularly strong start to the year and it had considerable confidence for the future. REUTER  
JAMES HARDIE INDUSTRIES LTD <HAHA.S> YR TO MARCH. Yr ended March 31 Shr 37.8 cents vs 30.7 Final div 13 cents vs 11, making yr 24 vs 22 Net 60.58 mln dlrs vs 47.42 mln Turnover 1.50 billion vs 1.56 billion Other income 16.84 mln vs 3.73 mln Shrs 161.71 mln vs 154.19 mln. NOTE - Div pay Aug 6. Reg July 17. Div is unfranked and thus will not be tax-free under dividend imputation. Net is after tax 28.39 mln dlrs vs 29.93 mln, depreciation 32.05 mln vs 34.59 mln, interest 29.16 mln vs 45.74 mln and minorities 1.35 mln vs 9.89 mln but before extraordinary profit 2.28 mln vs loss 31.05 mln.  
CULLINET SOFTWARE INC <CUL> 4TH QTR EARNINGS. April 30 end Shr loss 13 cts vs shr profit 12 cts Net loss 4,116,000 vs net profit 3,672,000 Revs 61.1 mln vs 55.5 mln Avg shrs 32,263,000 vs 31,640,000 12 months Shr loss 86 cts vs shr profit 42 cts Net loss 27.6 mln vs net profit 13 mln Revs 174.9 mln vs 189.3 mln Avg shrs 32,184,000 vs 30,938,000 NOTE: Both 1987 and 1986 figures restated to reflect April 21, 1987 acquisition of Distribution Management Systems Inc, accounted for as a pooling of interests. 1987 results include a first quarter non-recurring charge of 7 mln dlrs with an after-tax impact of 11 cts per share attributable to the write-off of the remaining assets acquried from Computer Pictures Corp in November 1982.  
PENWEST INC <PENW.O> 3RD QTR MAY 31 NET. Shr 1.08 dlrs vs 37 cts Net 3,025,000 vs 1,188,000 Sales 35.2 mln vs 35.4 mln Avg shrs 2,794,298 vs 3,187,051 Nine mths Shr 2.43 dlrs vs 83 cts Net 6,781,000 vs 2,576,000 Sales 101.0 mln vs 99.7 mln Avg shrs 2,794,298 vs 3,115,499  
FROST AND SULLIVAN INC <FRSL.O> 3RD QTR. Qtr ends April 30 Shr loss 10 cts vs profit nine cts Net loss 163,465 vs profit 131,815 Revs 3,672,731 vs 3,763,829 Nine mths Shr profit four cts vs profit one ct Net profit 57,911 vs profit 11,380 Revs 11,753,950 vs 10,794,822  
CULP INC <CULP.O> 4TH QTR MAY TWO NET. Shr 29 cts vs 23 cts Net 1,262,000 vs 1,002,000 Sales 49.9 mln vs 40.3 mln Year Shr 1.18 dlrs vs one dlr Net 5,205,000 vs 4,339,000 Sales 180.1 mln vs 150.7 mln NOTE: Prior year net both periods includes gain 900,000 dlrs from adjustments to LIFO reserves, compensation related accruals and a revised effective tax rate.  
GENERAL INSTRUMENT CORP <GRL> 1ST QTR MAY 31. Shr 37 cts vs eight cts Net 12.0 mln vs 5.1 mln Revs 280.1 mln vs 155.9 mln Backlog 625.7 mln vs 451.6 mln  
PRICE CO <PCLB.O> 3RD QTR JUNE SEVEN NET. Shr 30 cts vs 24 cts Net 14.7 mln vs 11.3 mln Sales 738.9 mln vs 605.1 mln Avg shrs 49.0 mln vs 47.9 mln Nine mths Shr 1.11 dlrs vs 93 ctsd Net 54.2 mln vs 42.9 mln Sales 2.45 billion vs 1.95 billion Avg shrs 48.9 mln vs 46.4 mln NOTE: Twelve- and 40-week periods.  
MEDCHEM PRODUCTS INC <MDCH.O> 3RD QTR NET. Qtr ends May 31 Shr 20 cts vs eight cts Net 509,043 dlrs vs 202,473 dlrs Revs 2,106,462 dlrs vs 1,158,621 dlrs Nine mths Shr 58 cts vs 50 cts Net 1,465,271 dlrs vs 1,240,773 dlrs Revs 5,854,819 dlrs vs 4,640,687 dlrs  
TULTEX CORP <TTX> 2ND QTR MAY 30 NET. Shr 17 cts vs 20 cts Net 3,121,000 vs 3,624,000 Revs 60.2 mln vs 59.0 mln Avg shrs 18.3 mln vs 18.2 mln Six mths Shr 40 cts vs 48 cts Net 7,429,000 vs 8,743,000 Revs 124.7 mln vs 126.1 mln Avg shrs 18.3 mln vs 18.1 mln  
POCO PETROLEUMS LTD <POC.TO> 2ND QTR NET. Period ended April 30 Shr not given Net 2,600,000 vs 1,600,000 Revs 18.1 mln vs 15.1 mln SIX MTHS Shr 21 cts vs 42 cts Net 3,800,000 vs 5,500,000 Revs 32.9 mln vs 35.8 mln  
ROBERT BRUCE INDUSTRIES <BRUCA.O> 1ST QTR LOSS. Qtr ends march 28 Shr loss 1.46 dlrs vs loss 49 cts Net loss 2,919,000 dlrs vs loss 892,000 dlrs Revs 10.3 mln vs 11.5 mln Avg shrs 2,000,000 vs 1,836,000 NOTE: full name of company is robert bruce industries Inc.  
EVERGOOD PRODUCTS CORP <EVGD.O> 1986 YEAR LOSS. Oper shr loss 19 cts vs loss 38 cts Oper net loss 239,000 dlrs vs loss 476,000 dlrs Revs 16.0 mln vs 14.6 mln  
CALSTAR INC <CSAR.O> YEAR APRIL 30 NET. Shr primary 66 cts vs 1.17 dlrs Shr diluted 66 cts vs 81 cts Net 1,220,691 vs 1,302,999 Revs 13.7 mln vs 13.1 mln Avg shrs primary 1,859,421 vs 1,112,400 Avg shrs diluted 1,859,421 vs 1,826,303 NOTE: Latest net includes tax credits of 565,000 dlrs vs 620,000 dlrs.  
MICRODYNE CORP <MCDY.O> 2ND QTR MAY THREE NET. Oper shr nil vs profit one ct Oper net profit 14,000 vs profit 51,000 Revs 5,547,000 vs 6,021,000 Six mths Oper shr loss nine cts vs profit seven cts Oper net loss 383,000 vs profit 314,000 dlrs Revs 9,31,000 dlrs vs 12.5 mln NOTE: 1986 qtr and six mths excludes loss 171,000 dlrs and 358,000 dlrs, respectively, for loss from discontinued operations.  
MAJOR VIDEO CORP <MAJV.O> YEAR APRIL 30 NET. Shr 23 cts vs 14 cts Net 611,000 vs 511,000 Revs 10.1 mln vs 4,380,000 NOTE: Latest year includes three cent per share loss from discontinued operations while prev year includes seven cent per share tax credit.  
A.G. EDWARDS INC <AGE> 1ST QTR MAY 31 NET. Shr 52 cts vs 62 cts Net 10,884,000 vs 12,891,000 Revs 133.3 mln vs 128.8 mln Avg shrs 21,017,000 vs 20,845,000  
STANDARD COMMERCIAL <STOB.O> 4TH QTR NET. qtr ended March 31 Shr 74 cts vs 79 cts Net 4,069,000 vs 3,458,000 Revs 173.2 mln vs 120.8 mln Year Shr 2.65 dlrs vs 2.73 dlrs Net 13.3 mln vs 11.9 mln Revs 618.4 mln vs 520.7 mln NOTE: Full name is Standard Commercial Tobacco Co.  Latest qtr and year includes tax loss carryforwards of 771,000 dlrs and 1,042,000 dlrs, respectively, and a loss of 613,000 dlrs for discontinued operation. Prev qtr and year includes tax loss carryforwards of 469,000 dlrs and 1,902,000 dlrs, respectively.  
18-JUN-1987. 18-JUN-1987 
MONOLITHIC MEMORIES INC <MMIC.O> 3RD QTR NET. Qtr ended June 7 Shr six cts vs 17 cts Net 1,332,000 vs 3,658,000 Sales 58.3 mln vs 51.6 mln Nine mths Shr 40 cts vs 25 cts net 8,875,000 vs 5,034,000 Sales 158.4 mln vs 133.6 mln  
APPLIED SOLAR ENERGY CORP <SOLR.O> 2ND QTR NET. Qtr ended May 2 Oper shr profit three cts vs loss five cts Oper net profit 115,000 dlrs vs loss 152,000 Revs 7,652,000 vs 4,279,000 Six mths Oper shr profit ten cts vs loss 34 cts Oper net profit 342,000 vs loss 1,149,000 Revs 14.0 mln vs 7,398,000 Note: oper data does not include extraordinary gain of 28,000 dlrs, or one ct per shr, in 2nd qtr 1987 or or 118,000 dlrs, or four cts per shr, in six mths.  
CONVERGENT SOLUTIONS INC <CSOL.O> 2ND QTR NET. March 31 end Shr profit 14 cts vs loss two cts Net profit 345,544 vs loss 48,097 Sales 1,032,224 vs 514,656 Avg shrs 2,420,925 vs 2,289,925 1st half Shr profit 21 cts vs profit nil Net profit 496,714 vs profit 5,602 Sales 1,649,860 vs 1,099,379 Avg shrs 2,407,334 vs 2,222,591 NOTE: Prior half net includes 1,849 dlr tax credit.  
<BARRICINI FOODS INC> 1ST QTR LOSS. Shr loss three cts vs loss three cts Net loss 78,456 vs loss 95,812 Sales 513,607 vs 283,043 Avg shrs 3,106,000 vs 2,933,333  
GODFREY CO <GDFY.O> 1ST QTR MAY 30 NET. Shr 36 cts vs 28 cts Net 2,002,000 vs 1,518,000 Sales 166.0 mln vs 159.5 mln  
ROCHESTER COMMUNITY SAVINGS BANK <RCSB.O> 2ND. Second quarter ended May 31. Shr 27 cts vs NA Net 3,560 mln vs 2,389,000 Six mths Shr 57 cts vs NA Net 7,881,000 vs 5,415,000 NOTE: Year-ago per shr figures not available as bank converted to stock ownership April 29, 1986.  1987 2nd quarter and six mth net excludes 2,288,000 dlrs or 17 cts a share and 4,648,000 dlrs or 33 cts a share, respectively, for tax carryforwards. 1986 2nd qtr and six mth net excludes 667,000 dlrs and 3,043,000 dlrs, respectively, for tax carryforwards.  
<AGF MANAGEMENT LTD> SIX MTHS MAY 31 NET. Shr 58 cts vs 38 cts Net 4,628,650 vs 3,041,407 Revs 45.0 mln vs 28.1 mln  
DATA MED CLINICAL SUPPORT<DMCS.O> 1ST QTR LOSS. Period ended May 31 Shr loss five cts vs loss 11 cts Net loss 306,007 vs loss 102,420 Sales 110,522 vs 10,105 NOTE: Full name is Data Med Clinical Support Services Inc Per-share data adjusted for three-for-one stock split payable June 30, 1987 The only sales reflected in fiscal 1987 period are sales recorded subsequent to the May 22, 1986 acquisition of the assets of a predecessor company by Data Med  
MARK'S WORK WEARHOUSE <(MWW.TO> 1ST QTR LOSS. Period ended May 2 Shr loss four cts vs loss three cts Net loss 397,000 vs loss 330,000 Revs 32.1 mln vs 30.4 mln Note: Full name Mark's Work Wearhouse Ltd.  
TRI-STAR PICTURES INC <TRSP.O> 1ST QTR MAY 31. Shr four cts vs four cts Net 1,180,000 vs 902,000 Revs 146.9 mln vs 37.0 mln Avg shrs 33 mln vs 23.9 mln NOTE: Company changed its fiscal year from December 31 to the last day of February, thus results of operations for the year-ago period have been restated to reflect this change. Current first quarter includes results of operations of Loews Theatre Management Corp which Tri-Star acquired December 31.  
NATIONAL SEMICONDUCTOR CORP <NSM> FOURTH QUARTER. Shr profit six cents vs loss 10 Net profit 8.1 mln dlrs vs loss 7.1 mln Sales 511.9 mln vs 397.8 mln Avg shrs 97.0 mln vs 90.5 mln YEAR Shr loss 38 cents vs loss 1.10 dlrs Net loss 24.6 mln dlrs vs loss 91.5 mln Sales 1.87 billion vs 1.48 billion Avg shrs 91.7 mln vs 89.8 mln NOTE - Current year figure includes previously announced 15 mln dlr restructuring charge. Figures include extraordinary credit from tax benefit of 4.2 mln dlrs in quarter vs 2.3 mln a year earlier and 4.2 mln for year vs 5.6 mln year earlier. The 1986 year net reflects 51.2 mln dlr gain from cumulative effect of accounting change.  
C. ITOH AND CO LTD <CITT.T>. Year ended March 31 Group shr 18.83 yen vs 18.73 Net 20.07 billion vs 18.47 billion Pretax 22.14 billion vs 25.36 billion Operating 37.57 billion vs 51.57 billion Sales 14,762 billion vs 15,900 billion  
ISUZU MOTORS LTD <ISUM.T> SIX MONTHS TO APRIL 30. Parent shr loss 15.85 yen vs profit 2.02 Interim div nil vs nil Net loss 12.92 billion vs profit 1.65 billion Current loss 12.52 billion vs profit 4.44 billion Operating loss 8.76 billion vs profit 6.52 billion Sales 443.90 billion vs 528.03 billion Outstanding shrs 815.10 mln vs 814.97 mln  
MICRON TECHNOLOGY INC <DRAM.O> 3RD QTR JUNE FOUR. Shr loss 14 cts vs loss 35 cts Net loss 3,718,908 vs loss 6,714,372 Revs 22.8 mln vs 14.4 mln Avg shrs 25.7 mln vs 19.2 mln Nine mths Shr loss 1.02 dlrs vs loss 1.46 dlrs Net loss 24.4 mln vs loss 28.1 mln Revs 61.7 mln vs 28.9 mln Avg shrs 23.8 mln vs 19.2 mln  
AMERICAN GREETINGS CORP <AGREA.O> 1ST QTR NET. Period ended May 31 Shr 42 cts vs 53 cts Net 13,600,000 vs 17,100,000 Revs 263.3 mln vs 243.8 mln  
AMERICAN GREETINGS CORP <AGREA.O> 1ST QTR NET. Period ended May 31 Shr 42 cts vs 53 cts Net 13,600,000 vs 17,100,000 Revs 263.3 mln vs 243.8 mln  
TEXAS UTILITIES CO <TXU> 12 MOS MAY 31 NET. Shr 4.61 dlrs vs 4.28 dlrs Net 663.3 mln vs 590.8 mln Rev 4.03 billion vs 4.06 billion Avg shares 143.9 mln vs 138.2 mln  
BOSTON DIGITAL CORP <BOST.O> 4TH QTR NET. Period ended April 30 Shr profit nil vs loss eight cts Net profit 4,000 vs loss 213,000 Sales 3,668,000 vs 2,602,000 Year Shr loss 18 cts vs loss 23 cts Net loss 482,000 vs loss 614,000 Sales 12.5 mln vs 13.6 mln NOTE: 1987 earnings in each period include a provision for unrealized loss on marketable securities of 176,000 dlrs  
NEW ENGLAND ELECTRIC SYSTEM <NES> FIVE MTHS NET. Five mths end may 31 Shr 1.37 dlrs vs 1.38 dlrs Net 75.2 mln vs 73.6 mln Revs 632.3 mln vs 629.6 mln Avg shrs 54.9 mln vs 53.4 mln 12 mths Shr 3.19 dlrs vs 3.13 dlrs Net 173.6 mln vs 165.1 mln Revs 1.43 billion vs 1.47 billion Avg shrs 54.4 mln vs 52.8 mln  
CHANCELLOR CORP <CHCR.O> 4TH QTR MARCH 31 LOSS. Shr loss 20 cts vs loss three cts Net loss 346,000 dlrs vs loss 26,000 dlrs Revs 7,671,000 dlrs vs 4,775,000 dlrs 12 mths Shr profit one dlr vs profit 2.19 dlrs Net profit 2,927,000 dlrs vs profit 5,613,000 dlrs Revs 40.9 mln vs 35.8 mln  
TELCO SYSTEMS INC <TELC.O> 3RD QTR MAY 31 LOSS. Shr loss 46 cts vs loss five cts Net loss 3,922,000 vs loss 420,000 Sales 16.0 mln vs 23.9 mln Avg shrs 8,567,000 vs 8,458,000 Nine mths Shr loss 1.02 dlrs vs profit 35 cts Net loss 8,685,000 vs profit 2,978,000 Avg shrs 8,547,000 vs 8,437,000  
MARS GRAPHIC SERVICES INC <WMD> 1ST QTR MAY 31. Shr 12 cts vs 10 cts Net 189,578 vs 100,254 Sales 3,403,914 vs 3,122,983 Avg shrs 1,617,600 vs 954,400  
COSTCO WHOLESALE <COST.O> 3RD QTR MAY 11 NET. Oper shr two cts vs three cts Oper net 529,000 vs 579,000 Sales 322.0 mln vs 173.8 mln Nine mths Oper shr six cts vs eight cts Oper net 1,619,000 vs 1,700,000 Sales 875.1 mln vs 482.3 mln  Note: oper data does not include extraordinary gains from tax loss carryforwards of 291,000 dlrs, or one ct per shr, vs 316,000 dlrs, or one ct per shr in qtr and 890,000 dlrs, or four cts per shr vs 992,000 dlrs, or four cts per shr in nine mths.  
RAPITECH SYSTEMS INC <RPSY.O> 3RD QTR LOSS. April 30 end Shr losses not given Net loss 449,000 vs loss 155,000 Revs 84,000 vs 52,000 Nine mths Shr losses not given Net loss 810,000 vs loss 394,000 Revs 173,000 vs 144,000  
PASSPORT TRAVEL INC <PPTI.O> 2ND QTR MAY 31 NET. Shr profit six cts vs loss one ct Net profit 80,939 vs loss 12,808 Rev 7.0 mln vs 6.3 mln Six months Shr profit eight cts vs loss one ct Net profit 101,345 vs loss 10,460 Rev 13.2 mln vs 12.5 mln  
SAVOY INDUSTRIES INC <SAVO.O> 1ST QTR LOSS. Oper shr loss 32 cts vs loss 17 cts Oper net loss 2,999,000 vs loss 1,692,000 Sales 10.3 mln vs 11.5 mln Avg shrs 9,517,000 vs 9,905,000 NOTE: 1986 Operating loss excludes profit of 3,688,000 dlrs, or 37 cts a share, from discontinued operations  
ANDERSEN GROUP INC <ANDR.O> 1ST QTR MAY 31. May 31 Shr loss 13 cts vs loss 4 cts Net loss 225,000 vs loss 80,000 Revs 11.8 mln vs 10.4 mln Avg shrs 1,789,165 vs 1,789,455  
AEL INDUSTRIES INC <AELNA.O> FIRST QTR NET. Shr 10 cts vs four cts Net 419,000 dlrs vs 196,000 dlrs Revs 27.3 mln dlrs vs 25.9 mln dlrs Note:the first quarter ended May 29  
NATIONAL VIDEO INC <NVIS.O> YEAR NET. Shr four cts vs nine cts Net 125,465 dlrs vs 245,718 dlrs Revs 8.4 mln dlrs vs 7.8 mln dlrs Note:the fiscal year ended March 31  
KAUFEL GROUP LTD (KGL.M) 3RD QTR NET. Shr 15 cts vs 10 cts Net 1,790,824 vs 1,031,602 Revs 14.0 mln vs 6.7 mln Nine mths Shr 41 cts vs 23 cts Net 4,830,513 vs 2,296,192 Revs 40.5 mln vs 15.4 mln Avg shrs 12.0 mln vs 10.5 mln  
DWI CORP <DWIC.O> 3RD QTR MARCH 31 NET. Shr profit nil vs loss two cts Net profit 39,617 vs loss 200,740 Revs 619,076 vs 491,085 Nine Mths Shr loss nil vs loss five cts Net loss 68,293 vs loss 434,087 Revs 1,614,960 vs 1,791,148  
SHIRMAX FASHIONS LTD <SHX.M> 1ST QTR NET. qtr ended May 2 Oper shr three cts vs 11 cts Oper net 333,000 vs 885,000 Revs 14.9 mln vs 12.2 mln Note: Latest qtr exludes writeoff of 735,000 dlrs from store renovation.  
<BOWER INDUSTRIES INC> 1ST QTR NET. Shr profit six cts vs loss 18 cts Net profit 156,000 vs loss 212,000 Revs 5,094,000 vs 5,669,000  
RISE TECHNOLOGY INC <RTEK.O> 1ST QTR LOSS. Shr loss 33 cts vs loss one ct Net loss 320,000 vs loss 8,000 revs 822,000 vs 405,000  
CHIRON CORP <CHIR.O> 4TH QTR APRIL 30 LOSS. Shr loss 22 cts vs loss 18 cts Net loss 2,494,000 vs loss 1,608,000 Revs 3,590,000 vs 1,710,000 Year Shr loss 68 cts vs loss 53 cts Net loss 7,318,000 vs loss 4,160,000 Revs 10,503,000 vs 7,134,000  
METHODE ELECTRONICS INC <METH.O> 4TH QTR NET. qtr ended April 30 Shr nine cts vs 17 cts Net 1,026,000 vs 1,840,000 Revs 25.9 mln vs 26.1 mln Year Shr 27 cts vs 56 cts Net 2,942,000 vs 5,865,000 Revs 95.7 mln vs 96 mln  
RICOH CO LTD <RICT.T> YEAR ENDED MARCH 31. Group shr 24.20 yen vs 37.42 Net 10.95 billion vs 15.46 billion Pretax 25.25 billion vs 31.15 billion Operating 28.39 billion vs 31.73 billion Sales 592.37 billion vs 593.86 billion NOTE - No forecast for current year  
FRASER AND NEAVE LTD <FRNM.SI> HALF YR TO MARCH 31. Shr 15.8 cents vs 12.9 cents Int div six cents vs same Group net 19.90 mln dlrs vs 16.25 mln Turnover 390.70 vs 381.60 mln NOTE - Div pay Aug 3, register July 31. Co says it expects results for the second half year to be similar to those of the first half.  
MITSUI REAL ESTATE DEVELOPMENT CO LTD <MREA.T>. Year ended March 31 Group shr 33.98 yen vs 39.10 Net 21.16 billion vs 19.96 billion Current 45.23 billion vs 32.87 billion Operating 77.17 billion vs 63.90 billion Sales 616.96 billion vs 527.88 billion NOTE - The company said the 37.6 pct increase in 1986/87 group current profit from a year earlier was mainly due to a drop of two billion yen in interest payments.  
TATA IRON AND STEEL PRE-TAX FALLS 37 PCT. Year to March 31, 1987 Share 106 rupees vs 130 Pre-tax profit 995.2 mln rupees vs 1.57 billion Net profit 875.2 mln vs 1.07 billion Sales 14.16 billion vs 12.85 billion Dividend 25 pct vs same Tax 120 mln vs 500 mln Note - Full company name is Tata Iron and Steel Co Ltd <TATA.BO>. Dividend is payable to shareholders on Aug 12.  
HELENE CURTIS INDUSTRIES INC <HC> 1ST QTR NET. Period end May 31 Shr profit four cts vs loss 22 cts Net profit 139,000 vs loss 799,000 Revs 101.9 mln vs 86.8 mln  
LE GROUPE VIDEOTRON LTEE <VDO.TO> NINE MTHS NET. Period ended May 31 Shr 41 cts vs 35 cts Net 15.4 mln vs 11.9 mln Revs 234.4 mln vs 96.6 mln Avg shrs 38.0 mln vs 34.4 mln  
INTER-TEL INC<INTLA.O> 2ND QTR MAY 31 OPER NET. Oper shr three cts vs one ct Oper net 210,000 vs 67,000 Revs 10,252,000 vs 8,929,000 Avg shrs 7,933,000 vs 8,553,000 Six mths Oper shr five cts vs two cts Oper net 420,000 vs 133,000 Revs 20.3 mln vs 17.1 mln Avg shrs 7,952,000 vs 8,551,000 NOTE: 1987 earnings exclude gain from utilization of tax loss carryforwards of 125,000 dlrs, or one ct a share in the quarter and 150,000 dlrs, or two cts a share for the six months  
TOWN AND COUNTRY JEWELRY <TNC> FIRST QTR NET. Shr 15 cts vs 12 cts Net 1,240,939 dlrs vs 989,714 dlrs Revs 32.9 mln dlrs vs 21.1 mln dlrs Note: first quarter ended May 31. The company's full name is Town and Country Jewelry Manufacturing Corp  
DATA ARCHITECTS INC <DAI> 2ND QTR MAY 31 NET. Shr 19 cts vs 16 cts Net 502,000 dlrs vs 401,000 dlrs Revs 8.8 mln dlrs vs 6.7 mln dlrs Six mths Shr 38 cts vs 29 cts Net 989,000 dlrs vs 745,000 dlrs Revs 16.3 mln dlrs vs 12.5 mln dlrs  
LIFETIME CORP <LFT> YEAR MARCH 27 NET. Shr 15 cts Net 3.6 mln dlrs Revs 96.9 mln dlrs Note: the company said year-ago figures are not comparable due to its reverse merger last year  
UNIVERSITY GENETICS CO <UGEN.O> 3RD QTR LOSS. Shr loss two cts vs loss four cts Net loss 199,010 dlrs vs loss 398,202 dlrs Revs 1,284,939 dlrs vs 359,440 dlrs Nine mths Shr loss 10 cts vs loss 14 cts Net loss 973,542 dlrs vs loss 1,298,203 dlrs Revs 3.9 mln dlrs vs 1,269,098 dlrs Note:the third quarter ended April 30  
TELECOMMUNICATIONS NETWORK <TNII.O> YEAR NET. Shr 38 cts vs 47 cts Net 968,000 dlrs vs 1,053,000 dlrs Revs 15.4 mln dlrs vs 12.6 mln dlrs Note:the year ended March 31.  
HOVNANIAN ENTERPRISES <HOV> 1ST QTR MAY 31 NET. Shr 27 cts vs 14 cts Net 5,664,000 vs 2,812,000 Revs 68.2 mln vs 54.7 mln Avg shrs 21,254,054 vs 20,167,714  
SIKES CORP <SKA> 1ST QTR MAY 31 NET. Shr 24 cts vs 18 cts Shr diluted 21 cts vs 18 cts Net 2,108,805 vs 1,605,278 Sales 28.9 mln vs 24.2 mln NOTE: Share results reflect two for one stock split to be paid July eight  
INTER-TEL INC <INTLA.O> 2ND QTR MAY 31 NET. Shr four cts vs one ct Net 335,000 vs 67,000 Rev 10.1 mln vs 8.7 mln Avg shares 7,933,000 vs 8,553,000 Six Months Shr seven cts vs two cts Net 570,000 vs 133,000 Rev 19.9 mln vs 16.8 mln Avg shares 7,952,000 vs 8,551,000 NOTE: Qtr includes extraordinary gain of 125,000 dlrs, or one ct a share, while six months' net includes gain of 150,000, or two cts a share.  
SHELDAHL INC <SHEL> 3RD QTR MAY 30 NET. Shr 12 cts vs one cent Net 546,000 vs 48,000 Revs 22.3 mln vs 16.0 mln Nine mths Shr 44 cts vs seven cts Net 1,857,000 vs 303,000 Revs 65.5 mln vs 46.0 mln NOTE: Per share figures adjusted for three-for-two stock split paid April 1987.  
STAR CLASSICS INC <SCLS.O> 1ST QTR MARCH 31 NET. Shr three cts vs two cts Net 97,224 vs 58,503 Rev 906,368 vs 714,747 Avg shrs 3,300,000 vs 3,948,719  
CLEOPATRA KOHLIQUE INC <CLEO.O> YEAR NET. year ended March 31 Shr three cts vs 11 cts Net 384,723 vs 800,137 Revs 5.1 mln vs 3.5 mln  
FEDERATED GROUP INC <FEGP.O> 1ST QTR LOSS. Period ended May 31. Shr loss eight cts vs profit six cts Net loss 895,000  vs profit 662,000 Sales 91.1 mln vs 89.8 mln  
HOVNANIAN ENTERPRISES INC <HOV> QTR EARNINGS. May 31 end Shr 27 cts vs 14 cts Net 5,664,000 vs 2,812,000 Revs 68.2 mln vs 54.7 mln Avg shrs 21,254,054 vs 20,167,714 NOTE: First quarter report  
RITE AID CORP <RAD> 1ST QTR MAY 30. Oper shr 50 cts vs 40 cts Oper net 20.8 mln vs 16.4 mln Revs 531.7 mln vs 418.7 mln NOTE: 1987 1st quarter net excludes a gain of 47.1 mln dlrs or 1.14 dlrs a share for discontinued operations.  
SUPER RITE FOODS INC <SRFI.O> 1ST QTR MAY 30. Shr 19 cts vs seven cts Net 936,000 vs 351,000 Revs 153.3 mln vs 145 mln  
GREAT COUNTRY BANK <GCBK.O> YEAR MAY 31 NET. Shr 31 cts vs n/a Net 671,000 dlrs vs 1,256,000 dlrs Year Shr 1.85 dlrs vs n/a Net four mln dlrs vs 2.8 mln dlrs Assets 426.4 mln dlrs vs 334.1 mln dlrs Deposits 323.1 mln dlrs vs 277.2 mln dlrs Loans 335.9 mln dlrs vs 254.9 mln dlrs Note:the company does not give 1986 per share earnings as it converted from a mutual savings bank to a stock savings bank in January 1986  
CANADIAN HOME SHOPPING (CWS.TO) 1ST QTR LOSS. Shr loss 26 cts Net loss 1,277,737 Revs 3.7 mln Note: full name Canadian Home Shopping Network Ltd. Period ended April 30 was company's first quarter of operations.  
CONCORD FABRICS INC <CIS> 3RD QTR OPER NET. Period ended May 31 Oper shr 31 cts vs 29 cts Oper net 552,035 vs 525,729 Sales 36.7 mln vs 29.1 mln Nine mths Oper shr 1.08 dlrs vs 1.04 dlrs Oper net 1,931,488 vs 1,864,075 Sales 104.9 mln vs 87.6 mln NOTE: 1986 period ended June One NOTE: Earnings exclude gain on disposal of discontinued operations of 162,000 dlrs, or nine cts a share vs loss of 585,175 dlrs, or 33 cts a share in the quarter and a gain of 432,000 dlrs, or 24 cts a share vs a loss of 585,175 dlrs, or 33 cts a share for the nine months 1986 earnings exclude losses from discontinued operations of 111,024 dlrs, or six cts a share in the quarter and 237,773 dlrs, or 13 cts a share for the nine months  
GENERAL PUBLIC UTILITIES <GPU> FIVE MTHS NET. Period ended May 31 Shr 1.81 dlrs vs 1.45 dlrs Net 113,752,000 vs 90,902,000 Revs 1.12 billion vs 1.20 billion NOTE: Full name is General Public Utilities Corp  
COMTREX SYSTEMS CORP <COMX.O> YEAR LOSS. Year ended March 31 Shr loss three cts vs profit 10 cts Net loss 58,285 vs profit 182,039 Sales 3,857,122 vs 3,188,555 Avg shrs 2,108,080 vs 1,891,250  
DATA ARCHITECTS INC <DAI> 2ND QTR MAY 31 NET. Shr 19 cts vs 16 cts Net 502,000 vs 401,000 Revs 8,791,000 vs 6,650,000 Six mths Shr 38 cts vs 29 cts Net 989,000 vs 745,000 Revs 16.3 mln vs 12.5 mln  
THOR ENERGY RESOURCES <THR> YEAR JAN 31 LOSS. Shr loss four cts vs loss seven cts Net loss 267,000 vs loss 445,000 Revs 6,407,000 vs 7,428,000 NOTE: Full name is Thor Energy Resources Inc  
HEI CORP <HEIC.O> 4TH QTR MARCH 31 LOSS. Oper shr loss 13 cts vs profit three cts Oper net loss 644,000 vs profit 184,000 Revs 24.9 mln vs 22.1 mln Year Oper shr loss nine cts vs profit 21 cts Oper net loss 429,000 vs profit 1,123,000 Revs 90.8 mln vs 86.5 mln  NOTE: Revenues exclude medical publishing and retail operations the company decided to dispose of during the fourth quarter which had fiscal year revenues of 17.3 mln dlrs vs 14.4 mln dlrs. Operating results exclude discontinued operations which had year loss of 364,000 dlrs vs profit 313,000 dlrs.  
LAIDLAW TRANSPORTATION LTD (LDMF.O) THIRD QTR. Shr 20 cts vs 12 cts Net 34,088,000 vs 18,727,000 Revs 340.4 mln vs 200.3 mln Nine mths Shr 53 cts vs 31 cts Net 88,661,000 vs 49,059,000 Revs 926.5 mln vs 560.1 mln Avg shrs 151.1 mln vs 137.0 mln  
MORRISON INC <MORR.O> 4TH QTR MAY 30 NET. Oper shr 38 cts vs 32 cts Qtly div 12 cts vs 12 cts Oper net 5,430,000 vs 4,707,000 Revs 169.1 mln vs 139.4 mln Year Oper shr 1.50 dlrs vs 1.32 dlrs Oper net 21.5 mln vs 19.1 mln Revs 602.5 mln vs 524.4 mln NOTE: 1986 operating net in both periods excludes loss 8.2 mln dlrs, or 56 cts a share, from discontinued operations  
PRECISION TARGET MARKETING <PTMI.O> 4TH QTR NET. Qtr ended April 30 Shr profit one ct vs loss three cts Net profit 146,000 vs loss 203,000 Revs 2,001,000 vs 1,493,000 Year Shr profit four cts vs loss 13 cts Net profit 445,000 vs loss 827,000 Revs 7,135,000 vs 5,237,000 NOTE: Full name is Precision Target Marketing Inc. Latest year and quarter includes extraordinary gains of 214,000 dlrs, or three cts a share, and 85,000 dlrs, or one ct a share.  
SEVEN OAKS INTERNATIONAL INC <QPON.O> YEAR NET. Periods ended April 30 Shr 83 cts vs 94 cts net 5,583,000 vs 8,403,000 Revs 28.8 mln vs 29.4 mln Avg shrs 6,754,000 vs 6,802,000  
HARTMARX CORP <HMX> 2ND QTR MAY 31 NET. Shr 40 cts vs 11 cts Net 8,265,000 vs 2,255,000 Sales 248.3 mln vs 245.4 mln Six mths Shr 94 cts vs 51 cts Net 19.4 mln vs 10.6 mln Sales 531 mln vs 535.8 mln  
WASHINGTON SCIENTIFIC <WSCI.O> 2ND QTR NET. Shr 16 cts vs two cts Net 391,000 vs 57,000 Sales 7,917,000 vs 7,255,000 Six mths Shr 47 cts vs 17 cts Net 1,164,000 vs 422,000 Sales 27.9 mln vs 24.3 mln NOTE: Full company name is Washington Scientific Industries Inc. Second quarter ended June seven.  
ADVANCED INSTITUTIONAL <AIMS.O> YEAR LOSS. Shr loss 79 cts vs profit 30 cts Net loss 2.1 mln dlrs vs profit 675,935 dlrs Revs 5.5 mln dlrs vs 9.1 mln dlrs Note:the year ended March 31. The company's full name is Advanced Institutional Management Software Inc  
ROYAL GOLD AND SILVER CORP <RGS.TO> SIX MTHS NET. Shr profit two cts vs loss two cts Net profit 123,000 vs loss 104,000 Revs 12.5 mln vs nil Note: 1987 period includes 112,000 dlr extraordinary gain.  
WALL AND REDEKOP CORP <WRK.TO> THREE MTHS NET. Shr five cts vs one ct Net 299,869 vs 54,775 Revs 5.7 mln vs 5.2 mln Note: period ended April 30.  
LENNAR CORP <LEN> 2ND QTR MAY 31. Shr 64 cts vs 40 cts Net 5,597,000 vs 3,426,000 Revs 83.5 mln vs 47.4 mln Six mths Shr 1.15 dlrs vs 60 cts Net 10 mln vs 5,201,000 Revs 147.6 mln vs 91.5 mln  
MUSICLAND GROUP INC <TMG> 3RD QTR NET. Shr 28 cts vs 14 cts Net 3,110,000 vs 1,286,000 Revs 112.7 mln vs 93.8 mln Avg shrs 11.2 mln vs 9,148,000 Nine mths Shr 58 cts vs 15 cts Net 6,377,000 vs 1,332,000 Revs 307.8 mln vs 233.8 mln Avg shrs 10.9 mln vs 9,148,000 NOTE: Company 81.4 pct owned by Primerica Corp <PA>.  
APPLIED BIOSYSTEMS INC <ABIO.O> 1ST QTR SEPT 30. Shr 22 cts vs 20 cts Net 2,963,000 vs 2,696,000 Sales 26.5 mln vs 19.4 mln  
NALCO CHEMICAL CORP <NLC> 3RD QTR NET. Shr 51 cts vs 42 cts Net 20.3 mln vs 16.7 mln Sales 216.9 mln vs 184.5 mln Nine mths Shr 1.47 dlrs vs 1.21 dlrs Net 58.2 mln vs 47.6 mln Sales 611.2 mln vs 547.0 mln  
STEPAN CO <SCL> 3RD QTR NET. Shr 87 cts vs 62 cts Net 2,604,000 vs 1,856,000 Sales 72.7 mln vs 64.6 mln Nine mths Shr 2.71 dlrs vs 1.97 dlrs Net 8,121,000 vs 5,834,000 Sales 215.7 mln vs 193.0 mln  
CONVERGENT INC <CVGT.O> 3RD QTR NET. Shr profit four cts vs loss 56 cts Net profit 2,043,000 vs loss 25.7 mln Revs 111.3 mln vs 64.7 mln Avg shrs 48.3 mln vs 45.8 mln Nine mths Shr loss 18 cts vs loss 63 cts Net loss 8,695,000 vs loss 28.4 mln REvs 308.4 mln vs 228.4 mln Avg shrs 48.0 mln vs 44.8 mln NOTE: 1986 net includes tax credits of 1,646,000 dlrs in quarter and 3,401,000 dlrs in nine mths. 1987 nine mths results restated for pooled acquisition of Bidtek Inc.  
TRIBUNE CO <TRB> 3RD QTR NET. Shr 42 cts vs 1.53 dlrs Net 33,085,000 vs 123,450,000 Revs 535.0 mln vs 496.7 mln Avg shrs 78,755,000 vs 80,666,000 Nine mths Shr 1.24 dlrs vs 3.35 dlrs Net 98,322,000 vs 271,512,000 Revs 1.58 billion vs 1.49 billion Avg shrs 78,999,000 vs 81,022,000 NOTE: 1987 per-share earnings include Daily News severance charges of 11 cts a share in the quarter and 13 cts a share for the nine months 1986 net income includes non-recurring gains of 1.11 dlrs a share in the quarter and 2.23 dlrs a share in the nine months and five cts a share Daily News severance charges  
GREAT WESTERN FINANCIAL CORP <GWF> 3RD QTR NET. Shr 45 cts vs 64 cts Net 57.8 mln vs 79.4 mln Nine mths Shr 1.53 dlrs vs 1.87 dlrs Net 195.8 mln vs 228.9 mln  
PRINTRONIX INC <PTNX.O> 2ND QTR SEPT 25 NET. Shr profit 11 cts vs loss 28 cts Net profit 515,000 vs loss 1,328,000 Sales 31.0 mln vs 32.1 mln Avg shrs 4,600,199 vs 4,815,062 1st half Shr loss 23 cts vs profit 10 cts Net loss 1,033,000 vs profit 482,000 Sales 58.5 mln vs 62.1 mln Avg shrs 4,565,752 vs 4,883,711 NOTE: 1986 half net includes pretax gain 4,150,000 dlrs from sale of option to buy facility. Backlog 28.1 mln dlrs vs 22.5 mln dlrs at end of previous quarter and 21.0 mln dlrs at end of prior year's second quarter.  
DOW CHEMICAL CO <DOW> 3RD QTR NET. Shr 1.72 dlrs vs 87 cts Net 330,000,000 vs 167,000,000 Sales 3.36 billion vs 2.74 billion Avg shrs 192,200,000 vs 191,700,000 Nine mths Shr 4.62 dlrs vs 2.95 dlrs Net 888,000,000 vs 564,000,000 Sales 9.78 billion vs 8.31 billion Avg shrs 191,100,000 vs 191,500,000 NOTE: Earnings include a loss of 3.0 mln dlrs, or one ct a share in the 1986 quarter from early extinguishment of debt Earnings include losses in the nine months of 3.0 mln dlrs, or two cts a share vs 8.0 mln dlrs, or four cts a share from early extinguishment of debt  
THRIFTY RENT-A-CAR SYSTEM INC <TFTY.O> 4TH QTR. June 30 end Shr 33 cts vs 13 cts Net 1,687,623 vs 636,500 Revs 18.7 mln vs 8,973,143 Year Shr 96 cts vs 66 cts Net 4,821,637 vs 3,309,017 Revs 58.8 mln vs 27.2 mln  
SHEARSON LEHMAN BROTHERS HOLDINGS <SHE> 3RD QTR. Shr 51 cts Net 51 mln dlrs vs 65 mln dlrs Revs 1.3 billion vs 1.1 billion Nine mths Shr 2.07 dlrs Net 189 mln vs 215 mln Revs 3.9 billion vs 3.3 billion NOTE: Full name is Shearson Lehman Brothers Holdings Inc Company went public May 7, 1987  
SEARS, ROEBUCK AND CO <S> 3RD QTR NET. Shr 1.08 dlrs vs 88 cts Net 409,000,000 vs 328,000,000 Revs 12.19 billion vs 11.17 billion Avg shrs 378.2 mln vs 368.4 mln Nine mths Shr 2.86 dlrs vs 2.17 dlrs Net 1.09 billion vs 808.3 mln Revs 34.39 billion vs 31.31 billion Avg shrs 377.7 mln vs 366.2 mln  
PRIME COMPUTER INC <PRM> 3RD QTR SEPT 28. Shr 32 cts vs 25 cts Net 15.9 mln vs 12.1 mln Revs 236.2 mln vs 221.9 mln Nine mths Shr 88 cts vs 68 cts Net 43.5 mln vs 32.8 mln Revs 693.9 mln vs 629.2 mln  
RYDER SYSTEM INC <RDR> 3RD QTR NET. Shr 65 cts vs 63 cts Net 52.7 mln vs 47.7 mln Revs 1.16 billion vs 976.6 mln Avg shrs 79.9 mln vs 74.3 mln Nine mths Shr 1.73 dlrs vs 1.54 dlrs Net 141.4 mln vs 117.9 mln Revs 3.39 billion vs 2.75 billion NOTE: Share after preferred dividends.  
SCHLUMBERGER LTD <SLB> 3RD QTR NET. Shr nil vs loss 14 cts Net 1,697,000 vs loss 41.9 mln Revs 1.2 billion vs 1.1 billion Avg shrs 276.4 mln vs 285.6 mln Nine mths Shr profit 13 cts vs profit 56 cts Net profit 36.8 mln vs 161.5 mln Revs 3.4 billoin vs 3.8 billion Avg shrs 278.2 mln vs 288.9 mln NOTE: 1987 3rd qtr includes 152.6 mln dlrs for continuing operations, which includes a 69 mln dlrs after-tax gain on sale of company's investment in Compagnie Luxembourgeoise de Telediffusion. 1987 3rd qtr and nine mths net includes a loss of 220 mln dlrs or 79 cts a share for discontinued operations and 70 mln dlrs or 25 cts a share for extraordinary gain. 1986 3rd qtr and nine mths net includes a loss of 59 mln dlrs or 20 cts a share from continuing operations mainly for employee layoff costs in oilfied services, sale of small electronic business and unfavorable lease comitments.  1987 nine mths net also includes a loss of 220 mln dlrs from discontinued operations due to completion of previously announced sale of Fairchild Semiconductor business. 1987 extraordinary item of 70.1 mln dlrs relates to award from Iran-U.S. Claims Tribunal from Iran's seizure of SEDCO Inc drilling business in 1979 prior to its acquisition by Schlumberger. 1986 3rd qtr and nine mths net also includes in discontinued operations a loss of 36 mln dlrs from Fairchild Semiconductor offset by a 53 mln dlrs gain from favorable settlement of litigation with Data General.  
WELLS FARGO AND CO <WFC> 3RD QTR NET. Shr profit 2.77 dlrs vs profit 1.35 dlrs Net 155.0 mln vs 77.4 mln Nine mths Shr loss 1.43 dlrs vs profit 3.66 dlrs Net loss 60.4 mln vs profit 195.2 mln Assets 45.15 billion vs 42.69 billion Loans 36.33 billion vs 34.46 billion Deposits 29.7 billion vs 23.3 billion  
BAXTER TRAVENOL LABS <BAX> 3RD QTR SHR NET. Shr 31 cts vs 18 cts Net 90 mln vs 51 mln Sales 1.58 billion vs 1.42 billion Avg shrs 274 mln vs 269 mln Nine Mths Shr 79 cts vs 42 cts Net 233 mln vs 129 mln Sales 4.58 billion vs 4.22 billion Avg shrs 238 mln vs 267 mln NOTE: 1987 results include Caremark Inc from August 3. Caremark acquisition reduced 1987 nine months net by five cts, offset by a three ct gain from the sale of securities. 1986 third quarter net excludes gains from discontinued operations of 12 mln dlrs or four cts; a gain from sale of discontinued operations of 285 mln dlrs or 1.06 dlrs; and a charge from early repayment of debt of 58 mln dlrs or 22 cts. 1986 nine months net excludes gains from discontinued operations of 38 mln dlrs or 14 cts; a gain from sale of discontinued operations of 285 mln dlrs or 1.06 dlrs; and a charge from early repayment of debt of 58 mln dlrs or 22 cts.  
LAMSON AND SESSIONS CO <LMS> 3RD QTR NET. Oper shr profit 20 cts vs loss 22 cts Oper net profit 2,111,000 vs loss 1,605,000 Revs 89.6 mln vs 27.2 mln Nine mths Oper shr profit 47 cts vs loss 15 cts Oper net profit 4,116,000 vs loss 1,029,000 Revs 252.1 mln vs 87.9 mln NOTE: 1986 net excludes losses from discontinued operations of 791,000 dlrs in quarter and 1,168,000 dlrs in nine mths. 1986 nine mths net excludes gain 4,726,000 dlrs from cumulative effect of pension accounting change. 1987 net excludes tax credits of 1,569,000 dlrs in quarter and 2,894,000 dlrs in nine mths.  
KRAFT INC <KRA> 3RD QTR SEPT 26 NET. Shr 91 cts vs 17 cts Net 124,100,000 vs 21,200,000 Sales 2.83 billion vs 2.22 billion Nine mths Shr 2.47 dlrs vs 2.02 dlrs Net 337,400,000 vs 294,200,000 Sales 7.98 billion vs 6.33 billion Avg shrs 136,700,000 vs 142,500,000 NOTE: 1986 earnings include a loss from discontinuedoperations of 50.3 mln dlrs, or 35 cts a share in the quarter and a gain of 21.2 mln dlrs, or 15 cts a share in the nine months  
UST INC <UST> 3RD QTR NET. Shr 60 cts vs 48 cts Net 35.0 mln vs 27.8 mln Revs 147.2 mln vs 131.6 mln Nine mths Shr 1.67 dlrs vs 1.38 dlrs Net 97.3 mln vs 77.9 mln Revs 422.4 mln vs 385.5 mln Avg shrs 58.4 mln vs 56.5 mln  
SMITHKLINE BECKMAN CORP <SKB> 3RD QTR NET. Shr 1.18 dlrs vs 87 cts Net 149.6 mln vs 134 mln Revs 1.1 billion vs 956 mln Avg shrs 127.3 mln vs 154.5 mln Nine mths Shr 3.36 dlrs vs 2.42 dlrs Net 428.1 mln vs 373.7 mln Revs 3.1 billion vs 2.7 billion  NOTE: 1987 3rd qtr and nine mths net includes a charge of 11 mln dlrs or nine cts a share and 31.8 mln dlrs or 25 cts a share for the interest expense for share repurchases. 1986 nine mths net includes a charge of 28.9 mln dlrs or 19 cts a share for early retirement program and withdrawal of Contac cold remedy from the market due to tampering.  
UNION CAMP CORP <UCC> 3RD QTR Sept 30. Shr 77 cts vs 50 cts Net 56.5 mln vs 36.4 mln Sales 583.3 mln vs 515.9 mln Nine months Shr 2.02 dlrs vs 1.19 dlrs Net 148.5 mln vs 87.1 mln Sales 1.69 billion vs 1.51 billion  
NEWELL CO <NWL> 3RD QTR NET. Shr 75 cts vs 64 cts Net 11,174,000 vs 7,408,000 Sales 218.8 mln vs 106.3 mln NIne Mths Shr 1.80 dlrs vs 1.54 dlrs Net 23,762,000 vs 16,603,000 Sales 414.8 mln vs 295.9 mln NOTE: 1987 net income excludes preferred dividends of 2.4 mln dlrs in the quarter and 2.7 mln dlrs in the nine months compared with 188,000 dlrs and 563,000 dlrs in 1986.  
FIRST VALLEY CORP <FIVC.O> 3RD QTR NET. Shr 69 cts vs 62 cts Net 4,401,000 vs 3,808,000 Nine mths Shr 1.99 dlrs vs 1.77 dlrs Net 12.6 mln vs 10.8 mln  
AVON PRODUCTS INC 3RD QTR NET. Shr 37 cts vs 42 cts Net 26.6 mln vs 30.0 mln Sales 805.4 mln vs 690.6 mln Avg shrs 70.6 mln vs 71.0 mln Nine mths Shr 1.23 dlrs vs 1.23 dlrs Net 86.8 mln vs 88.5 mln Sales 2.30 billion vs 2.01 billion Avg shrs 70.3 mln vs 72.2 mln  
SPRINGS INDUSTRIES INC <SMI> 3RD QTR OCT THREE. Shr 99 cts vs 42 cts Net 17.6 mln vs 7,528,000 Sales 424.2 mln vs 376.8 mln Nine mths Shr 2.21 dlrs vs 94 cts Net 39.3 mln vs 16.8 mln Sales 1.20 billion vs 1.10 billion NOTE: Share adjusted for two-for-one stock split in April 1987.  
MARSH AND MCLENNAN COS INC <MMC> 3RD QTR NET. Shr 1.04 dlrs vs 87 cts Net 77.7 mln vs 64.2 mln Revs 533.7 mln vs 461.8 mln Avg shrs 74.7 mln vs 73.9 mln Nine mths Shr 3.35 dlrs vs 2.63 dlrs Net 249.5 mln vs 193.9 mln Revs 1.63 billion vs 1.36 billion Avg shrs 74.5 mln vs 73.8 mln  
20-OCT-1987. 20-OCT-1987 
SUNDSTRAND CORP <SNS> 3RD QTR NET. Shr 77 cts vs 1.07 dlrs Net 14,455,000 vs 20,083,000 Sales 334.4 mln vs 348.5 mln Nine Mths Shr 2.40 dlrs vs 3.04 dlrs Net 45,00,000 vs 56,928,000 Sales 987.4 mln vs 1.04 billion  
HUNTINGTON BANCSHARES INC <HBAN.O> 3RD QTR NET. Shr 68 cts vs 61 cts Shr diluted 66 cts vs 60 cts Net 18.6 mln vs 16.5 mln Avg shrs 27.5 mln vs 26.6 mln Nine mths Shr 1.40 dlrs vs 1.76 dlrs Shr diluted 1.38 dlrs vs 1.71 dlrs Net 38.9 mln vs 46.9 mln Avg shrs 27.4 mln vs 25.8 mln NOTE: Share adjusted for July 1987 10 pct stock dividend. Results restated for pooled acquisitions. Net includes loan loss provisions of 5,765,000  dlrs vs 4,252,000 dlrs in quarter and 43.3 mln dlrs vs 15.4 mln dlrs in nin mths.  
WEIRTON STEEL CORP 3RD QTR. Net 33.6 mln vs 11.1 mln Revs 319.6 mln vs 295.1 mln Nine mths Net 97.3 mln vs 30.0 mln Revs 997.8 mln vs 860.0 mln NOTE: Company does not report per share earnings as it is a privately-owned concern. Net amounts reported are before taxes, profit sharing, and contribution to employee stock ownership trust.  
DOMTAR INC <DTC> 3RD QTR NET. Shr 37 cts vs 41 cts Net 35 mln vs 38 mln Revs not given Nine mths Shr 1.32 dlrs vs 1.18 dlrs Net 123 mln vs 106 mln Revs not given  
GENERAL SIGNAL CORP <GSX> 3RD QTR NET. Shr 67 cts vs 65 cts Net 18.9 mln vs 18.6 mln Revs 399.0 mln vs 391 mln Nine mths Shr 1.70 dlrs vs 1.98 dlrs Net 48.2 mln vs 56.9 mln Revs 1.18 billion vs 1.2 billion  
MELLON BANK CORP <MEL> 3RD QTR NET. Shr profit 47 cts vs profit 1.78 dlrs Net profit 16 mln vs profit 53 mln Avg shrs 27.7 mln vs 27.4 mln Nine mths Shr loss 22.51 dlrs vs profit 5.78 dlrs Net loss 610 mln vs profit 168 mln Avg shrs 217.6 mln vs 27.3 mln Assets 33.14 billion vs 33.89 billion Deposits 22.01 billion vs 19.86 billion Loans 21.76 billion vs 22.70 billion NOTE: Net includes loan loss provisions of 40 mln dlrs vs 48 mln dlrs in quarter and 748 mln dlrs vs 217 mln dlrs in nine mths. Net includes pretax gains on sale of securities of 11 mln dlrs vs 29 mln dlrs in quarter and 13 mln dlrs vs 130 mln dlrs in nine mths.  
MUSICLAND GROUP INC <TMG> 3RD QTR NET SEPT 25. Shr 28 cts vs 14 cts Net 3,110,000 vs 1,286,000 Sales 112.7 mln vs 93.8 mln Avg shrs 11.2 mln vs 9.1 mln Nine Mths Shr 58 cts vs 15 cts Net 6,377,000 vs 1,332,000 Sales 307.8 mln vs 233.8 mln Avg shrs 10.9 mln vs 9.1 mln NOTE: Effective September 25, 1987, Primerica Corp <PA> owned 81.4 pct of Musicland's common shares.  
MELVILLE CORP <MES> 3RD QTR NET. Shr 95 cts vs 87 cts Net 51.6 mln vs 47.3 mln Revs 1.39 billion vs 1.26 billion Nine mths Shr 2.27 dlrs vs 1.93 dlrs Net 123.5 mln vs 104.6 mln Revs 3.92 billion vs 3.53 billion  
BOLT BERANEK AND NEWMAN INC <BBN> 1ST QTR NET. ended sept 30 Shr 22 cts vs 18 cts Net 4,127,000 vs 3,177,000 Sales 70.2 mln vs 48.6 mln NOTE: Share adjusted for July 1987 two-for-one stock split.  
DOMINION RESOURCES INC <D> 3RD QTR NET. Shr 1.52 dlrs vs 1.37 dlrs Net 144.5 mln vs 127.3 mln Revs 909.8 mln vs 824.7 mln Avg shrs 95.1 mln vs 92.9 mln 12 mths Shr 4.62 dlrs vs 4.05 dlrs Net 435.9 mln vs 372.1 mln Revs 3.28 billion vs 2.94 billion Avg shrs 94.3 mln vs 91.8 mln  
INTER-REGIONAL FINANCIAL<IFG> 3RD QTR OPER NET. Oper shr 30 cts vs 26 cts Oper net 2,360,000 vs 2,018,000 Revs 74.4 mln vs 70.1 mln Nine mths Oper shr 92 cts vs 92 cts Oper net 7,101,000 vs 7,116,000 Revs 218.8 mln vs 209.2 mln NOTE: Earnings exclude a gain from utilization of tax loss carryforwards of 978,000 dlrs, or 13 cts a share vs a loss of 4,967,000 dlrs, or 66 cts a share in the quarter and gains of 2,895,000 dlrs, or 37 cts a share vs 4,944,000 dlrs, or 64 cts a share in the nine months 1986 earnings exclude losses from discontinued operations of 9,000,000 dlrs, or 1.19 dlrs a share in the quarter and 387,000 dlrs, or five cts a share in the nine months  
GTE CORP <GTE> 3RD QTR NET. Shr 86 cts vs 96 cts Net 297 mln vs 325 mln Revs 2.95 billion vs 2.86 billion Nine mths Shr 2.30 dlrs vs 2.74 dlrs Net 785 mln vs 916 mln Revs 11.3 billion vs 11.1 billion NOTE: 1986 share results restated for 3-for-2 stock split in January 1987  1987 net in both periods includes business repositioning gains of 16 mln dlrs, or five cts a share, and gains from early retirement programs of 65 mln dlrs, or 20 cts a share 1987 nine months net also includes pre-tax charge of 175 mln dlrs for GTE's share of a special write-off at U.S. Sprint which reduced after tax net by 104 mln dlrs, or 31 cts a share 1986 net in both periods includes business repositioning gains of 32 mln dlrs, or 10 cts per share  
U S WEST <USW> 3RD QTR NET. Shr 1.46 dlrs vs 1.41 dlrs Net 277.5 mln vs 268.3 mln dlrs Revs 2.13 billion vs 2.14 billion Nine Mths Shr 3.95 dlrs vs 3.78 dlrs Net 750.5 mln vs 718.4 mln Revs 6.28 billion vs 6.22 billion  
KELSEY-HAYES CANADA LTD <KEL.TO> NINE MTHS NET. Shr 44 cts vs 1.23 dlrs Net 2,889,010 vs 8,105,462 Sales 105.8 mln vs 119.6 mln  
ROCKEFELLER CENTER PROPERTIES INC <RCP> 3RD QTR. Shr 30 cts vs 31 cts Net 11.3 mln vs 11.7 mln Revs 26.5 mln vs 26.3 mln Nine mths Shr 92 cts vs 95 cts Net 34.3 mln vs 35.5 mln Revs 78.8 mln vs 78.2 mln  
ARITECH CORP <ARIT.O> 3RD QTR OCT TWO. Shr 34 cts vs 33 cts Net 1,031,000 vs 972,000 Revs 27.9 mln vs 26.9 mln Nine mths Shr 93 cts vs 76 cts Net 2,802,000 vs 2,267,000 Revs 86.1 mln vs 77.7 mln NOTE: 1987 3rd qtr and nine mths revs includes sales to ADT Inc of 3.0 mln dlrs and 10.9 mln dlrs. 1986 3rd qtr and nine mths includes sales of 3.5 mln dlrs and 10.7 mln dlrs.  
SOUTHOLD SAVINGS BANK <SDSB.O> 3RD QTR NET. Shr 50 cts Net 2,751,000 vs 2,094,000 Nine mths Net 6,993,000 vs 5,577,000 Assets 603.1 mln vs 504.3 mln Loans 448.5 mln vs 358.1 mln Deposits 467.9 mln vs 447.7 mln NOTE: Per share figures for 1986 and 1987 nine mths not available as bank converted to stock form of company in April 1987.  
CONSTELLATION BANCORP <CSTL.O> 3RD QTR NET. Shr 78 cts vs 61 cts Net 4,774,000 vs 3,683,000 Nine mths Shr 2.14 dlrs vs 1.77 dlrs Net 13.1 mln vs 10.7 mln  
LOUISIANA-PACIFIC CORP <LPX> 3RD QTR NET. Shr 1.11 dlrs vs 59 cts Net 42.6 mln vs 22.2 mln Sales 531.8 mln vs 407.4 mln Nine mths Shr 2.45 dlrs vs 1.27 dlrs Net 93.7 mln vs 48.1 mln Sales 1.44 billion vs 1.12 billion  
OLIN CORP <OLN> 3RD QTR NET. Shr 64 cts vs 40 cts Net 14.9 mln vs 8,600,000 Revs 468.5 mln vs 411.7 mln Nine mths Shr 2.64 dlrs vs 2.96 dlrs Net 61.6 mln vs 67.0 mln Revs 1.43 billion vs 1.32 billion  
BRISTOL-MYERS CO <BMY> 3RD QTR NET. Shr 70 cts vs 61 cts Net 200.2 mln vs 173.9 mln Sales 1.38 billion vs 1.26 billion Nine mths Shr 1.87 dlrs vs 1.54 dlrs Net 535.6 mln vs 437.8 mln Sales 4.04 billion vs 3.63 billion NOTE: Share adjusted for two-for-one stock split.  
XYVISION INC <XYVI.O> 2ND QTR SEPTEMBER 26. Shr 14 cts vs 15 cts Net 867,000 vs 956,000 Revs 9,203,000 vs 5,304,000 Six mths Shr 18 cts vs 34 cts Net 1,111,000 vs 1,747,000 Revs 16.7 mln vs 10.4 mln NOTE: 1987 2nd qtr and six mths net includes 279,000 dlrs and 432,000 dlrs for tax credits. 1986 2nd qtr and six mths net includes 361,000 dlrs and 1,747,000 dlrs for tax credits.  
PERKINS FAMILY RESTAURANTS LP <PFR> 3RD QTR. Shr 30 cts vs 12 cts Net 3,059,000 vs 1,258,000 Revs 36.2 mln vs 29.1 mln Nine mths Shr 67 cts vs 24 cts Net 6,855,000 vs 2,442,000 Revs 100.9 mln vs 77.8 mln  
FIRST AMERICAN BANK FOR SAVINGS <FAMB.O> 3RD QTR. Shr 35 cts vs 30 cts Net 3,997,000 vs 3,442,000 Nine mths Shr 1.04 dlrs vs not given Net 12.0 mln vs 8,161,000 NOTE: Company went public in July 1986. Net includes loan loss provisions of 500,000 dlrs vs 105,000 dlrs in quarter and 1,100,000 dlrs vs 105,000 dlrs in nine mths. Net includes pretax gains on sale of assets of 162,000 dlrs vs 400,000 dlrs in quarter and 877,000 dlrs vs 1,229,000 dlrs in nine mths.  
ARKANSAS BEST CORP <ABZ> 3RD QTR NET. Shr diluted 31 cts vs 60 cts Net 3,276,776 vs 6,846,367 Revs 187.7 mln vs 181.3 mln Nine mths Shr diluted 52 cts vs 1.51 dlrs Net 5,301,876 vs 16.4 mln Revs 535.7 mln vs 513.0 mln  
FIREMAN'S FUND CORP <FFC> 3RD QTR NET. Shr 3.71 dlrs vs 95 cts Net 233.8 mln vs 62.8 mln Revs 997.8 mln vs 938.0 mln Nine mths Shr 5.06 dlrs vs 2.24 dlrs Net 327.2 mln vs 148.0 mln Revs 3.00 billion vs 2.70 billion NOTE: Realized investment gains net of taxes for 1987 3rd qtr and nine mths were 147.0 mln dlrs and 271.0 mln dlrs, respectively. Realized investment gains for 1986 3rd qtr and nine mths were 18.6 mln dlrs and 33.6 mln dlrs, respectively. Company repurchased 1.2 mln shares of its stock during the 1987 3rd qtr.  
E.F. HUTTON GROUP INC <EFH> 3RD QTR NET. Shr 26 cts vs 11 cts Net 8,700,000 vs 3,600,000 Revs 988.9 mln vs 674.5 mln Nine mths Shr 3.65 dlrs vs 1.38 dlrs Net 120.6 mln vs 43.6 mln Revs 2.7 billion vs 2.1 billion  NOTE: Net for 1987 includes 4.4 mln from discontinued opers, 51.6 mln after tax gain on sale of E.F. Hutton Insurance Group, and 36.6 mln on extraordinary gains from utiliazation of loss carryforward. Net in 1986 included 10.8 mln from discontinued opers and an extraordinary credit of 5.2 mln from utilization of loss carryforwards.  
MANUFACTURERS HANOVER CORP <MHC> 3RD QTR NET. shr profit 2.73 dlrs vs 2.29 dlrs net 129.1 mln vs 105.8 mln nine mths shr loss 28.33 dlrs vs profit 6.42 dlrs net loss 1.16 billion vs profit 301.8 mln NOTE: 3rd qtr includes previously reported gain of 55.0 mln dlrs, or 29.4 mln after-tax, by capturing excess pension funds. Nine mths include 1.7 billion dlr addition to loan loss reserves in 2nd qtr, mostly for shaky LDC debts.  
COCA COLA ENTERPRISES INC <CCE> 3RD QTR NET. Shr 23 cts vs 23 cts Net 31.9 mln vs 15.7 mln Revs 876.9 mln vs 401.2 mln Avg shrs 140.1 mln vs 68.6 mln Nine mths Shr 53 cts vs 42 cts Net 74.0 mln vs 28.9 mln Revs 2.55 billion vs 1.17 billion Avg shrs 140.1 mln vs 68.6 mln NOTE: Results include acquired bottling companies from dates of acquisition. On pro forma basis, as if all acquisitions had been in place from the start of the period, company earned 5,704,000 dlrs or four cts per share on 140.0 mln shares outstanding with revenues of 826.2 mln dlrs for quarter and earned 14.1 mln dlrs or 10 cts per share on same number of shares and revenues of 2.41 billion dlrs for nine mths.  
BALL CORP <BLL> 3RD QTR NET. Shr 80 cts vs 72 cts Net 18,900,000 vs 17,100,000 Sales 267.4 mln vs 288.6 mln Nine mths Shr 2.26 dlrs vs 2.04 dlrs Net 53,600,000 vs 48,200,000 Sales 839.3 mln vs 836.3 mln  
BANKERS TRUST <BT> 3RD QTR NET. Shr 2.03 dlrs vs 1.53 dlrs Net 146.4 mln vs 110.3 mln Nine months shr loss 3.99 dlrs vs profit 4.62 dlrs net loss 283.3 mln vs profit 330.5 mln Avg shrs 71.08 mln vs 69.26 mln Assets 56.9 billion vs 50.7 billion Deposits 30.4 billion vs 25.9 billion Loans 26.3 billion vs 25.7 billion Note : Nine month loss reflects 700 mln dlr increase in loan loss provisions. Without the tax benefit, third-quarter net income would have been 127.6 mln dlrs, up 16 pct or 17.4 mln dlrs from the third quarter of 1986. Non-interest income totaled 342.6 mln dlrs in the third quarter, up 47 pct or 109.7 mln dlrs, largely due to increased income from foreign exchange trading, fees and commissions. Foreign exchange trading income totaled 71.3 mln dlrs, up 44.3 mln from a year ago. Provision for loan losses in the third quarter was 20 mln dlrs versis 40 mln a year previously. At September 30, the provision for loan losses jumped to 1.30 billion dlrs from 455 mln at the same time last year.  
U.S. TELECOMMUNICATIONS INC <UT> 3RD QTR NET. Shr profit 23 cts vs profit 49 cts Net profit 24.1 mln vs profit 49.6 mln Revs 755.4 mln vs 708.3 mln Nine mths Shr loss 84 cts vs profit 1.53 dlrs Net loss 80.7 mln vs profit 152.3 mln Revs 1.19 billion vs 2.32 billion NOTE: Per shr reflects payment of preferred dividends. Results include loss of 7,435,000 or eight cts shr in prior nine mths from discontinued operations. Latest nine month results include one-time charge of 1.09 dlrs share relating to US Sprint. Revenues exclude those for US Sprint, a joint venture with GTE Corp <GTE>.  
BRISTOL-MYERS CO <BMY> 3RD QTR NET. Shr 70 cts vs 61 cts Net 200.2 mln vs 173.9 mln Sales 1.38 billion vs 1.26 billion Nine mths Shr 1.87 dlrs vs 1.54 dlrs Net 535.6 mln vs 437.8 mln Sales 4.04 billion vs 3.63 billion NOTE: Share adjusted for two-for-one stock split.  
GANDER MOUNTAIN INC <GNDR.O> 1ST QTR SEPT 30 NET. Shr 25 cts vs 19 cts Net 687,000 vs 514,000 Sales 20.7 mln vs 13.2 mln  
SNAP-ON TOOLS CORP <SNA> 3RD QTR NET. Shr 53 cts vs 38 cts Net 22,249,000 vs 15,356,000 Sales 189.1 mln vs 166.5 mln Nine mths Shr 1.56 dlrs vs 1.21 dlrs Net 64,707,000 vs 49,603,000 Sales 559.2 mln vs 492.4 mln  
NYCOR INC <NYCO.O> 3RD QTR NET. Shr loss two cts vs profit two cts Net profit 253,000 vs profit 356,000 Revs 17.5 mln vs 12.3 mln Nine mths Shr profit one cent vs profit 21 cts Net profit 628,000 vs profit 2,921,000 Revs 54.9 mln vs 36.0 mln NOTE: 1987 qtr and nine mths includes gain 106,000 dlrs, or one cent per share, and 846,000 dlrs, or six cts per share, respectively, from utilization of tax loss carryforward.  1986 qtr and nine mths includes gain 178,000 dlrs, or one cent per share, and gain 810,000 dlrs, or six cts per share, respectively, from utilization of tax loss carryforward. 1987 nine mths includes loss 1,519,000 dlrs,  or 11 cts per share, from early extinguishment of debt.  
AMERICAN SAVINGS BANK FSB <ABNY.O> 3RD QTR NET. Shr primary 1.79 dlrs vs 1.72 dlrs Shr diluted 1.39 dlrs vs 1.34 dlrs Net 12.1 mln vs 11.7 mln Nine mths Shr primary 5.56 dlrs vs 4.41 dlrs Shr diluted 4.30 dlrs vs 3.74 dlrs Net 37.3 mln vs 29.1 mln Assets 3.92 billion vs 3.83 billion Loans 3.05 billion vs 2.99 billion  NOTE: 1987 qtr and nine mths includes gain 6,016,000 dlrs and 18.7 mln dlrs, respectively, from utilization of net operating loss carryforward. 1986 qtr and nine mths includes gain 6,233,000 dlrs and 15.5 mln dlrs, respectively, from utilization of net operating loss carryforward. Full name of company is american savings bank fsb of new york.  
WASHINGTON POST CO <WPO> 3RD QTR NET. Shr 4.77 dlrs vs 1.65 dlrs Net 61.3 mln vs 21.1 mln Revs 312.9 mln vs 291.5 mln Nine mths Shr 9.51 dlrs vs 4.98 dlrs Net 122.3 mln vs 63.9 mln Revs 950.4 mln vs 881.8 mln NOTE: 1987 net in both periods includes gains of 24.2 mln dlrs, or 1.88 dlrs a share, from sale of interest in Detroit Cellular telephone company and 6.1 mln dlrs, or 47 cts a share, from sale of interest in sportschannel Cable programing network.  
BANC ONE CORP <ONE> 3RD QTR NET. Shr 66 cts vs 57 cts Net 64.0 mln vs 52.9 mln Nine mths Shr 1.49 dlrs vs 1.64 dlrs Net 142.2 mln vs 153.3 mln Assets 18.04 billion vs 16.63 billion Deposits 13.97 billion vs 12.78 billion Loans 12.54 billion vs 10.81 billion  
WARNER COMMUNICATIONS INC <WCI> 3RD QTR NET. Shr 41 cts vs 28 cts Net 66.2 mln vs 41.8 mln Revs 824.1 mln vs 693.3 mln Nine mths Shr 1.50 dlrs vs 87 cts Net 236.1 mln vs 123.8 mln Revs 2.38 billion vs 2.02 billion  
ARISTECH CHEMICAL CORP <ARS> 3RD QTR NET. Shr 72 cts vs 56 cts Qtly div 18 cts vs 18 cts prior Net 18.7 mln vs 14.4 mln Revs 239.7 mln vs 187.1 mln Nine mths Shr 1.87 dlrs vs 1.26 dlrs Net 48.3 mln vs 32.5 mln Revs 676.9 mln vs 574.8 mln NOTE: Dividend payable December 1 to shareholders of record October 30.  
APPLE BANK FOR SAVINGS <APPL.O> 3RD QTR NET. Shr 1.54 dlrs vs 1.27 dlrs Net 7,065,000 vs 5,812,000 Nine mths Shr 4.25 dlrs vs 3.40 dlrs Net 19.5 mln vs 15.6 mln Assets 2.84 billion vs 1.87 billion Deposits 2.51 billion vs 1.67 billion  NOTE: 1987 qtr and nine mths includes gain 2,500,000 dlrs, or 54 cts per share, from utilization of tax loss carryforward. 1986 qtr and nine mths includes gain 2,158,000 dlrs, or 47 cts per share, and 5,567,000 dlrs, or 1.22 dlrs per shr, respectively, from utilization of tax loss carryforward.  
KELLOGG CO <K> 3RD QTR NET. Shr 96 cts vs 83 cts Net 119.3 mln vs 102.8 mln Revs 1.01 billion vs 869.9 mln Nine mths Shr 2.53 dlrs vs 2.01 dlrs Net 313.6 mln vs 248.5 mln Revs 2.83 billion vs 2.52 billion NOTE: 1986 nine month earnings include nonrecurring loss of 9.9 mln dlrs, or eight cents a share, from purchase of 123.7 mln dlrs principal amount of the company's 150 mln dlr 12-1/4 pct debentures due February 15, 2015.  
REGAL-BELOIT CORP <RBC> 3RD QTR NET. Shr 31 cts vs 26 cts Net 1,858,000 vs 1,388,000 Sales 27.1 mln vs 18.7 mln Nine mths Shr 87 cts vs 76 cts Net 5,126,000 vs 3,798,000 Sales 70.6 mln vs 57.2 mln  
BURNDY CORP <BDC> 3RD QTR OCT 2 NET. Shr 21 cts vs 19 cts Net 2,560,000 vs 2,359,000 Revs 70.0 mln vs 56.0 mln Nine mths Shr 54 cts vs 42 cts Net 6,574,000 vs 5,100,000 Revs 207.7 mln vs 174.0 mln  
FIRST FLORIDA BANKS <FFBK> 3RD QTR NET. Shr 72 cts vs 74 cts Net 11.9 mln vs 11.9 mln Nine mths Shr 2.18 dlrs vs 2.18 dlrs Net 35.0 mln vs 34.6 mln Assets 4.6 billion vs 4.3 billlion Loans 3.1 billion vs 2.8 billion NOTE: 1986 3rd qtr includes securities after tax gain of 1,519,000 dlrs or 10 cts a share.  
J.W. MAYS INC <MAYS.O> 4TH QTR JULY 31 NET. Shr profit seven cts vs profit 32 cts Net profit 154,398 vs profit 694,521 Revs 17.7 mln vs 19.5 mln Year Shr profit 86 cts vs loss 50 cts Net profit 1,862,986 vs loss 1,078,535 Revs 78.2 mln vs 81.4 mln NOTE: 1987 year results include extraordinary credit of 459,000 dlrs or 21 cts per shr due to utilization of tax loss carryforward.  Fiscal 1987 nonrecurring income items totaled 4,322,342 vs 1,393,187 in 1986. Qtr 1987 includes 446,000 dlrs or 20 cts per shr extraordinary charge due to duction in utilization of tax loss carryforward. Nonrecurring income items totaled 2,564 in three mths 1987 vs 1,211,196 in three mths 1986. Nonrecurring income for year 1987 included pretax gain of 4,307,180 dlrs on sale of company's leasehold of Glen Oaks store on Dec 16, 1986.  The company discontinued operations in that unit on Jan. 17, 1987. Nonrecurring income for three and 12 months 1986 included 575,000 for settlement of litigation and a gain of 618,719 dlrs on surrender of leaseholds. The 12 month period also included refund of prior year's real estate tadxes of 136,964.  
ALLIANCE FINANCIAL CORP <ALFL.O> 3RD QTR NET. Shr 45 cts vs 61 cts Net 504,000 vs 683,000 Nine mths Shr 1.83 dlrs vs 2.42 dlrs Net 2,043,000 vs 2,183,000  
METROPOLITAN FEDERAL <MFTN.O> 1ST QTR NET. Qtr ended September 30. Shr 83 cts vs 75 cts Net 3,053,000 vs 2,775,000 Assets 1.2 billion vs 1.0 billion Deposits 851.8 mln vs 754.1 mln Loans 912.5 mln vs 798.1 mln  
ALTOS COMPUTER SYSTEMS <ALTO.O> 1ST QTR NET. Period ended September 30. Shr 17 cts vs 10 cts Net 2.2 mln vs 1.3 mln Sales 40.6 mln vs 32.6 mln  
JANNOCK LTD <JN.TO> 3RD QTR NET. Shr 65 cts vs 47 cts Net 17.7 mln vs 11.9 mln Revs 131.9 mln vs 128.4 mln Nine mths Shr 1.77 dlrs vs 1.02 dlrs Net 49.0 mln vs 27.0 mln Revs 341.7 mln vs 269.5 mln  
YELLOW FREIGHT SYSTEM <YELL.O> 3RD QTR NET. Shr 40 cts vs 75 cts Qtly div 15-1/2 cts vs 15-1/2 cts prior Net 11.7 mln vs 21.4 mln Revs 447.5 mln vs 445.2 mln Nine mths Shr 1.04 dlrs vs 1.99 dlrs Net 29.9 mln vs 56.8 mln Revs 1.30 billion vs 1.28 billion NOTE: Full name is Yellow Freight System Inc. Dividend is payable November 23, record November 9.  
RALEIGH FEDERAL SAVINGS BANK <RFBK.O> 3RD QTR. Shr 38 cts Net 1.3 mln vs 668,000 Nine mths Shr 84 cts Net 2,892,000 vs 2,200,000 NOTE: Company converted to stock ownership in July  
FLORIDA EMPLOYERS INSURANCE <FLAEF.O> 3RD QTR. Shr 32 cts vs 26 cts Net 722,000 vs 597,000 Nine mths Shr 92 cts vs 69 cts Net 2,100,000 vs 1,500,000 NOTE: full name of company is florida employers insurance co.  
FIRST OAK BROOK <FOBBA.O> 3RD QTR NET. Shr 61 cts vs 55 cts Net 726,000 vs 669,000 Nine mths Shr 1.78 dlrs vs 1.63 dlrs Net 2,133,000 vs 1,960,000 NOTE: Full name is First Oak Brook Bancshares Inc  
UNITED SERVICE ADVISORS INC <USVSP.O> 1ST QTR. Qtr ends Sept 30 Shr profit seven cts vs loss two cts Net profit 228,691 vs loss 54,115 Revs 2,415,419 vs 1,389,579 Avg shrs 3,056,787 vs 2,933,058  
WOLOHAN LUMBER CO <WLHN.O> 3RD QTR NET. Shr 46 cts vs 33 cts Net 2,731,000 vs 1,928,000 Sales 66.2 mln vs 58.8 mln Nine mths Shr seven cts vs 61 cts Net 6,310,000 vs 3,579,000 Sales 171.8 mln vs 141.9 mln  
TAUNTON SAVINGS BANK <TSBK.O> 3RD QTR NET. Shr 37 cts vs 41 cts Net 1,214,000 vs 1,316,000 Nine mths Shr 1.06 dlrs Net 3,408,000 vs 2,809,000 Assets 204.8 mln vs 176.6 mln Deposit 154.0 mln vs 131.2 mln Loans 125.3 mln vs 100.7 mln NOTE: 1986 nine mths per share figures not available because bank converted to stock form in June of 1986.  
TRILLIUM TELEPHONE <TLM.TO> 2ND QTR NET. Shr profit seven cts vs loss 1.77 dlrs Net profit 446,000 vs loss 9,370,000 Revs 15.0 mln vs 13.3 mln Six mths Shr profit eight cts vs loss 1.87 dlrs Net profit 523,000 vs loss 9,883,000 Revs 27.1 mln vs 27.1 mln Avg shrs 5,324,464 vs 5,324,350 Note: Trillium Telephone Systems Inc  
TRANS-NATIONAL LEASING INC <TNLS.O> YEAR LOSS. Shr loss 39 cts vs profit 19 cts Net loss 433,424 vs profit 216,117 Revs 6,469,001 vs 8,221,549  
ELMIRA SAVINGS BANK FSB <ESBK.O> 3RD QTR NET. Shr 55 cts vs 75 cts Net 218,000 vs 269,000 Nine mths Shr 2.15 dlrs vs 3.45 dlrs Net 855,000 vs 920,000 Assets 175.8 mln vs 166.9 mln Deposits 159.8 mln vs 154.3 mln Loans 155.7 mln vs 142.6 mln  NOTE: 1987 nine mths includes gain 96,000 dlrs, or 24 cts per share, from utilization of operating loss carryforward. 1986 qtr and nine mths includes gain 128,000 dlrs, or 36 cts per share, and 445,000 dlrs, or 1.67 dlrs per share, from utilization of operation loss carryforward.  
GOLDEN VALLEY MICROWAVE <GVMF.O> 3RD QTR NET. Period ended September 26 Shr 28 cts vs 14 cts Net 3,300,000 vs 1,300,000 Sales 24.7 mln vs 11.2 mln Avg shrs 11,871,751 vs 9,398,952 Nine mths Shr 76 cts vs 35 cts Net 9,000,000 vs 3,200,000 Sales 69.3 mln vs 32.0 mln Avg shrs 11,833,883 vs 9,059,692  
HOME FEDERAL SAVINGS/ROCKIES <HROK.O> 3RD QTR. Shr 77 cts vs nil Net 417,000 vs 1,000 Nine mths Shr 2.39 dlrs vs 84 cts Net 1,298,000 vs 443,000 Assets 290.7 mln vs 296.6 mln NOTE: full name of company is home federal savings and loan association of the rockies.  
WESTPORT BANCORP INC <WBAT.O> 3RD QTR NET. Shr 19 cts vs 38 cts Net 397,000 vs 788,000 Nine mths Shr 80 cts vs 1.19 dlrs Net 1,674,000 vs 2,455,000  
OHIO EDISON CO <OEC> 3RD QTR NET. Shr 60 cts vs 57 cts Net 103.7 mln vs 96.5 mln Revs 472.5 mln vs 434.1 mln Avg shrs 152.3 mln vs 147.0 mln 12 mths Shr 2.60 dlrs vs 2.44 dlrs Net 393.1 mln vs 347.1 mln Revs 1.79 billion vs 1.76 billion Avg shrs 150.9 mln vs 142.2 mln  
NEW YORK STATE ELECTRIC/GAS CORP <NGE> 3RD QTR. Oper shr 71 cts vs 78 cts Oper net 42.9 mln vs 46.6 mln Revs 294.0 mln vs 274.9 mln Avg shrs 55.5 mln vs 54.0 mln Nine mths Oper shr 2.88 dlrs vs 3.07 dlrs Oper net 169.2 mln vs 181.5 mln Revs 993.4 mln vs 961.4 mln Avg shrs 55.2 mln vs 54.0 mln 12 mths Oper shr 3.67 dlrs vs 3.76 dlrs Oper net 216.2 mln vs 224.4 mln Revs 1.31 billion vs 1.26 billion Avg shrs 54.9 mln vs 53.9 mln NOTE: 1987 nine month and 12 month operating net excludes charges of 269 mln dlrs and 25 mln dlrs reflecting disallowed costs of utility's 18 pct share of Nine Mile Point Number two nuclear power plant and the abandoned Jamesport nuclear project, respectively. The charges resulted in nine month share loss of 2.44 dlrs and 12 month share loss of 1.68 dlrs.  
CITICORP <CCI> 3RD QTR NET. Shr profit 3.64 dlrs vs profit 1.64 dlrs Net profit 541 mln vs profit 247 mln Nine mths Shr loss 13.30 dlrs vs profit 5.11 dlrs Net loss 1.78 billion vs profit 752 mln NOTE: Net in nine mths 1987 vs 1986 includes provision for possible credit losses of 4.19 billion vs 1.32 billion. Net in qtr 1987 vs 1986 includes provision for possible crit losses of 320 mln vs 431 mln. Assets 200 billion vs 186 billion Loans 129.3 billion vs 122.3 billion Deposits 118.1 billion vs 111.0 billion 3rd qtr 1987 reflects previously announced aftertax gain of 163 mln from recognition of pension plan over funding and 139 mln of tax benefits from the three billion provision. Net write offs in qtr 1987 vs 1986 totaled 338 mln vs 342 mln and in year to date 1987 vs 1986 of 1.06 billion vs 988 mln.  
COLEMAN CO INC <CLN> 3RD QTR NET. Shr 42 cts vs 34 cts Net 2,945,000 vs 2,400,000 Sales 146.8 mln vs 117.2 mln Nine mths Shr 2.45 dlrs vs 2.35 dlrs Net 17,280,000 vs 16,366,000 Sales 465.6 mln vs 387.8 mln Avg shrs 7,046,000 vs 6,961,000 NOTE: 1986 data restated for changes in method of accounting for pensions  
INTERMEC CORP <INTR.O> 2ND QTR SEPT 30 NET. Shr 16 cts vs 17 cts Net 988,000 vs 1,005,000 Revs 19.7 mln vs 16.4 mln Avg shrs 6,206,487 vs 5,959,028 Six Mths Shr 31 cts vs 28 cts Net 1,884,000 vs 1,662,000 Revs 37.5 mln vs 30.8 mln Avg shrs 6,168,105 vs 5,950,842  
HOMESTEAD FINANCIAL CORP <HFL> 3RD QTR NET. Shr 30 cts vs 73 cts Net 3,992,000 vs 8,526,00 Nine Mths Shr 1.72 dlrs vs 1.74 dlrs Net 22,110,000 vs 20,379,000 Avg shrs 13,459,000 vs 11,740,000 Note: Prior nine month figures include extraordinary after-tax loss of 10.9 mln dlrs, or 93 cts per share.  
SILVERCREST CORP <SLV> 1ST QTR SEPT 30 NET. Shr 17 cts vs 15 cts Net 565,000 vs 502,000 Revs 20.0 mln vs 14.5 mln Note: Current qtr figures include tax loss carryforward credit of 194,000 dlrs vs credit of 197,000 dlrs.  
H.F. AHMANSON AND CO <AHM> 3RD QTR NET. Shr 41 cts vs 80 cts Net 40.3 mln vs 78.9 mln Nine mths Shr 1.58 dlrs vs 2.40 dlrs Net 155.0 mln vs 223.3 mln Avg shrs 98,353,350 vs 92,967,487 Assets 27.48 billion vs 27.60 billion Loans 22.75 billion vs 19.00 billion Deposits 21.45 billion vs 21.31 billion  
JWP INC <JWP> 3RD QTR NET. Shr 50 cts vs 37 cts Net 16.1 mln vs 9,390,000 Revs 168.1 mln vs 111.3 mln Avg shrs 12.5 mln vs 11.6 mln Nine mths Shr 1.31 dlrs vs 86 cts Net 16.1 mln vs 9,390,000 Revs 445.8 mln vs 244.6 mln Avg shrs 12.4 mln vs 10.9 mln  
PEOPLES SAVINGS BANK <PEBW.O> 3RD QTR NET. Shr 32 cts vs not given Net 1,041,000 vs 43,000 Nine mths Shr 1.09 dlrs vs not given Net 3,586,000 vs 764,000 NOTE: Company went public in October 1986.  
TEXAS EASTERN CORP <TET> 3RD QTR NET. Shr profit three cts vs profit 36 cts Net profit 1,800,000 vs profit 19.2 mln Nine mths Shr profit 1.22 dlrs vs loss 44 cts Net 64.7 mln vs loss 23.5 mln NOTE: 1986 3rd qtr and nine months includes a profit of 2.8 mln dlrs and a loss of 66.7 mln dlrs from discontinued operations. Earnings per share are reported after payment of preferred stock dividends of subsidiaries.  
MEDITRUST SBI <MT> 3RD QTR NET. Shr 31 cts vs 26 cts Net 3,308,000 vs 1,512,000 Revs 6,467,000 vs 2,590,000 Avg shrs 10.7 mln vs 5,788,594 Nine mths Shr 1.32 dlrs vs 1.17 dlrs Net 10.2 mln vs 3,041,000 Revs 18.7 mln vs 5,682,000 Avg shrs 10.7 mln vs 3,780,626  
HEALTH IMAGES INC <HIMG.O> 3RD QTR NET. Shr profit five cts vs loss four cts Net profit 378,000 vs loss 140,000 Revs 4,226,000 vs 1,240,000 Nine mths Shr loss 38 cts vs loss 16 cts Net loss 1,088,000 vs 538,000 Revs 10.1 mln vs 2,963,000  NOTE: 1987 nine mths includes charge 1,827,000 dlrs for exchange by an officer and director of 554,000 shares of junior subordinated stock for 443,000 shares of common stock and a 10-year warrant to purchase 250,000 shares of common stock at 4.50 dlrs per share.  
PRESTON CORP <PTRK.O> 3RD QTR NET. Shr four cts vs 36 cts Net 254,000 vs 2,063,000 Revs 130.0 mln vs 107.8 mln Nine mths Shr 23 cts vs 1.16 dlrs Net 1,336,000 vs 6,659,000 Revs 370.9 mln vs 313.7 mln  
CONTRANS CORP <CSS.TO> 4TH QTR AUGUST 31 NET. Shr 52 cts vs 47 cts Net 1,935,000 vs 1,495,000 Revs 52.7 mln vs 43.1 mln Year Shr 83 cts vs 1.01 dlrs Net 3,775,000 vs 3,221,000 Revs 172.7 mln vs 105.9 mln NOTE: Share figures for year are after payment of preferred share dividend and include unspecified extraordinary items.  
STANADYNE INC <STNA.O> 3RD QTR NET. Shr 95 cts vs 30 cts Net 9,139,000 vs 2,894,000 Revs 135.6 mln vs 118.5 mln Nine mths Shr 2.81 dlrs vs 1.95 dlrs Net 27.0 mln vs 18.8 mln Revs 406.5 mln vs 372.8 mln  
MERCANTILE BANKSHARES CORP <MRBK.O> 3RD QTR NET. Shr 99 cts vs 77 cts Net 12.7 mln vs 9,736,000 Avg shrs 12.8 mln vs 12.7 mln Nine mths Shr 2.67 dlrs vs 2.30 dlrs Net 34.0 mln vs 29.1 mln NOTE: Net includes pretax securities gains 16,000 dlrs vs 228,000 dlrs in quarter and 48,000 dlrs vs 1,673,000 dlrs in nine mths. Net includes loan loss provisions 1,092,000 dlrs vs 790,000 dlrs in quarter and 3,089,000 dlrs vs 2,584,000 dlrs in nine mths.  
ALLEGHENY LUDLUM CORP <ALS> 3RD QTR NET. Shr 38 cts vs not given Net 8,616,000 vs not given Revs 209.1 mln vs 169.8 mln Nine mths Shr 1.76 dlrs vs not given Net 34.5 mln vs not given Revs 632.0 mln vs 551.5 mln NOTE: Year ago per share and net income not available as company recapitalized on December 28, 1986 after it became a new reporting entity for financial reporting purposes.  
ATLANTIC RESEARCH CORP <ATRC.O> 3RD QTR NET. Shr primary 60 cts vs 42 cts Shr diluted 57 cts vs 41 cts Net 5,590,000 vs 3,721,000 Revs 103.5 mln vs 91.8 mln Nine mths Shr primary 1.55 dlrs vs 1.41 dlrs Shr diluted 1.48 dlrs vs 1.34 dlrs Net 14.3 mln vs 12.7 mln Revs 300.5 mln vs 269.3 mln  
TW SERVICES INC <TW> 3rd qtr net. Shr 38 cts vs 28 cts Net 18.6 mln vs 14.5 mln Revs 574.2 mln vs 493.3 mln Avg shrs 48,602,000 vs 50,487,000 Nine months Shr 85 cts vs 61 cts Net 41.5 mln vs 32.8 mln Revs 1.62 billion vs 1.40 billion Avg shrs 48,622,000 vs 51,670,000 NOTE: 1987 results do not include September acquisiton of Denny's Inc.  
SANTA FE ENERGY PARTNERS <SFP> 3RD QTR LOSS. Shr loss 18 cts vs loss 3.61 dlrs Net loss 5,600,000 vs loss 100.2 mln Revs 33.5 mln vs 22.3 mln Avg units 30.9 mln vs 27.5 mln Nine mths Shr loss 22 cts vs loss 4.20 dlrs Net loss 6,800,000 vs loss 113.6 mln Revs 97.3 mln vs 83.4 mln Avg units 30.0 mln vs 26.8 mln NOTE: full name is sante fe energy partners l.p.  
GENERAL DEVELOPMENT CORP <CDV> 3RD QTR NET. Shr 66 cts vs 61 cts Net 5,928,000 vs 5,447,000 Revs 126.0 mln vs 89.8 mln Avg shrs 8,948,000 vs 8,947,000 Nine mths Shr 1.96 dlrs vs 1.96 dlrs Net 17.5 mln vs 16.3 mln Revs 343.9 mln vs 286.9 mln Avg shrs 8,948,000 vs 8,300,000  
US WEST INC <USW> 3RD QTR NET. Shr 1.46 dlrs vs 1.41 dlrs Net 277.5 mln vs 268.3 mln Sales 2.13 billion vs 2.14 billion Avg shrs 189.8 mln vs 189.8 mln Nine mths Shr 3.95 dlrs vs 3.78 dlrs Net 750.5 mln vs 718.4 mln Sales 6.28 billion vs 6.22 billion Avg shrs 189.9 mln vs 190.2 mln  
NORTH SIDE SAVINGS BANK <NSBK.O> 4TH SEPT 30. Shr 42 cts vs 35 cts Net 1,540,000 vs 1,289,000 Year Shr 1.59 dlrs vs 63 cts Net 5,849,000 vs 3,980,000 NOTE: 1987 year excludes 1,814,000 dlrs for tax credits. 1986 4th qtr and year excludes a gain of 995,000 dlrs and 2,928,000 dlrs, respectively, for tax credits. 1986 per share amounts caclulted from April 15, 1986, to septebmer 30, the date of bank's conversion to stock ownership.  
ATHEY PRODUCTS CORP <ATPC.O> 3RD QTR NET. Shr 40 cts vs 23 cts Net 1,173,859 vs 672,824 Revs 11.0 mln vs 9,857,707 Nine mths Shr 1.03 dlrs vs 56 cts Net 2,986,823 vs 1,637,559 Revs 31.5 mln vs 27.2 mln  
NATURE'S SUNSHINE PRODUCTS INC <AMTC.O> 3RD QTR. Shr 30 cts vs 10 cts Net 560,000 vs 177,000 Revs 9,700,000 vs 7,700,000 Avg shrs 1,877,203 vs 1,839,752 Nine mths Shr 80 cts vs 28 cts Net 1,480,000 vs 524,000 Revs 28.3 mln vs 22.8 mln Avg shrs 1,854,478 vs 1,899,769  
LEGG MASON INC <LM> 2ND QTR NET. Shr 35 cts vs 32 cts Net 3,033,000 vs 2,189,000 Revs 56.2 mln vs 31.9 mln Avg shrs 8,649,000 vs 6,914,000 Six mths Shr 63 cts vs 72 cts Net 5,450,000 vs 4,966,000 Revs 108.6 mln vs 66.3 mln Avg shrs 8,655,000 vs 6,912,000  
DYNCORP <DYN> 3RD QTR NET. Shr 32 cts vs 35 cts Net 3,446,000 vs 3,789,000 Revs 220.9 mln vs 186.9 mln Nine mths Oper shr 77 cts vs 71 cts Oper net 8,301,000 vs 7,298,000 Revs 634.3 mln vs 535.1 mln NOTE: 1987 nine mths net excludes 3,510,000 dlr charge from antitrust litigation.  
FROZEN FOOD EXPRESS <FEXP.O> 3RD QTR NET. Shr 54 cts vs 44 cts Net 706,111 vs 579,576 Revs 21.7 mln vs 23.2 mln Nine mths Shr 1.26 dlrs vs 44 cts Net 1,657,634 vs 582,001 Revs 63.1 mln vs 68.6 mln NOTE: Full name of company is Frozen Food Express Industries Inc.  
ASTROCOM CORP <ACOM.O> 3RD QTR NET. Shr loss four cts vs profit four cts Net loss 93,574 vs profit 100,469 Revs 3,125,532 vs 3,253,239 Nine mths Shr loss three cts vs profit seven cts Net loss 67,184 vs profit 179,116 Revs 9,125,965 vs 9,284,055  
ARMOR ALL PRODUCTS CORP <ARMR.O> 2ND QTR SEPT 30. Shr 14 cts vs 13 cts Net 2,867,.000 vs 2,723,000 Revs 18.9 mln vs 19.1 mln 1st half Shr 39 cts vs 32 cts Net 8,139,000 vs 6,709,000 Revs 47.3 mln vs 44.5 mln NOTE: Affiliate of McKesson Corp <MCK>.  
MULTIBANK FINANCIAL CORP <MLTF.O> 3RD QTR NET. Shr 60 cts vs 54 cts Net 5,726,000 vs 4,623,000 Avg shrs 9,538,260 vs 8,598,198 Nine mths Shr 1.61 dlrs vs 1.35 dlrs Net 15.0 mln vs 11.5 mln Avg shrs 9,277,440 vs 8,486,590  
USP REAL ESTATE INVESTMENT TRUST <USPTS.O> 3RD. Shr eight cts vs 10 cts Qtly div 30 cts vs 30 cts prior Net 204,064 vs 245,931 Nine mths Shr 1.14 dlrs vs 52 cts Net 2,850,042 vs 1,291,047 NOTE: 1987 and 1986 nine mths includes a net gain on sale of assets of 2,258,206 dlrs or 90 cts a share and 459,503 dlrs, respectively. Dividend payable November 13 to shareholders or record October 30.  
LINCOLN FINANCIAL CORP <LFIN.O> 3RD QTR NET. Shr 61 cts vs 64 cts Net 3,430,000 vs 3,091,000 Nine mths Shr 1.81 dlrs vs 1.73 dlrs Net 10,185,000 vs 8,038,000 Assets 1.64 billion vs 1.45 bilion Deposits 1.27 billion vs 1.15 billion Loans 1.03 billion vs 838.5 mln Note: 1986 figures restated to reflect pooling of interests transactions with Angola State Bank and Shipshewana State Bank and an October 1986 three-for-one stock split  
REPUBLIC AMERICAN CORP <RAWC.O> 3RD QTR NET. Oper shr 36 cts vs 25 cts Oper net 7,100,00 vs 5,700,000 Avg shrs 20.0 mln vs 22.8 mln Nine mths Oper shr 1.03 dlrs vs 73 cts Oper net 21.3 mln vs 15.2 mln Avg shrs 20.7 mln vs 20.9 mln NOTE: 1986 net excludes realized capital gains of 2,300,000 dlrs in quarter and 22.6 mln dlrs in nine mths.  
KENT ELECTRONICS CORP <KEC> 2ND QTR SEPT 26 NET. Shr 14 cts vs seven cts Net 348,000 vs 135,000 Revs 6,328,000 vs 4,117,000 Avg shrs 2,558,400 vs 1,884,200 Nine mths Shr 29 cts vs 20 cts Net 640,000 vs 313,000 Revs 12.0 mln vs 8,719,000 Avg shrs 2,226,600 vs 1,589,6000  
QMS INC <AQM> 4TH QTR OCT 2 NET. Shr 34 cts vs 29 cts Net 3,188,000 vs 2,731,000 Revs 37.2 mln vs 25.4 mln Avg shrs 9,474,000 vs 9,425,000 Year Shr 92 cts vs 80 cts Net 8,671,000 vs 7,492,000 Revs 119.4 mln vs 73.6 mln Avg shrs 9,450,000 vs 9,410,000  
LA PETITE ACADEMY INC <LPAI.O> 3RD QTR NET. Shr 13 cts vs nine cts Net 2,062,000 vs 1,418,000 Revs 33.1 mln vs 26.9 mln Nine mths Shr 45 cts vs 33 cts Net 7,053,000 vs 5,156,000 Revs 95.5 mln vs 75.7 mln NOTE: Share adjusted for stock dividends.  
TELECONCEPTS CORP <TCC> 3RD QTR NET. Shr profit 14 cts vs profit one ct Net profit 502,251 vs profit 22,012 Sales 4,715,846 vs 3,731,900 Avg shrs 3,489,342 vs 3,288,720 Nine mths Shr profit 19 cts vs loss 20 cts Net profit 637,305 vs loss 658,398 Sales 12.2 mln vs 9,806,301 Avg shrs 3,439,065 vs 3,288,720 Backlog 1,726,150 vs 739,540  
WELLS FARGO AND CO <WFC> RAISES QUARTERLY DIV. Qtly div 50 cts vs 39 cts Pay Jan 20 Record Dec 31  
PETROLANE PARTNERS L.P. <LPG> 3RD QTR LOSS. Shr loss five cts vs profit six cts Net loss 1.2 mln vs profit 1.4 mln Revs 114.9 mln vs 109.3 mln Nine months Shr profit one dlrs vs profit 84 cts Net profit 23.7 mln vs profit 19.9 mln Revs 430.9 mln vs 435.4 mln NOTE: Results are in pro forma form. Partnership became public on March 19, 1987. Previous results reported from Texas Eastern Corp's <TET> Petrolane Inc domestic division.  
VALERO ENERGY CORP <VLO> 3RD QTR LOSS. Shr loss 1.31 dlrs vs loss 1.80 dlrs Net loss 31.2 mln vs loss 42.6 mln Revs 168.5 mln vs 147.3 mln Nine mths Shr loss 15 cts vs loss 4.32 dlrs Net profit 3.2 mln vs loss 101 mln REvs 446.1 mln vs 490.7 mln NOTE: All periods toher than 1987 3rd qtr are pro forma. NOTE: 1987 3rd qtr includes a 10.6 mln dlrs or 41 ct a share after-tax loss from discontinued operations mainly from sale of assets of oil and gas exploration and production subsidiary on September 30. 1987 3rd qtr also includes an extraordinary 11.4 mln dlrs or 45 cts a share for planned redemtion of company's 16-1/4 pct subordinated debentures. 1987 nine mths net includes a loss of 56.6 mln dlrs or 2.26 dlrs a share for discontinued operations. 1987 per share loss is after deducting for preferred stock dividends.  1987 nine mths net also includes after-tax gain of 44.3 mln dlrs or 1.74 dlrs per share for formation of Valero Natural Gas Partners L.P. 1986 3rd qtr includes after tax loss from discontinued operations of 31.5 mln dlrs or 1.26 dl share.  
AMERICAN FILTRONA CORP <AFIL.O> 3RD QTR. Shr 31 cts vs 36 cts Net 1,156,000 vs 1,358,000 Revs 31.2 mln vs 28.6 mln Nine mths Shr 1.10 dlrs vs 1.20 dlrs Net 4,064,000 vs 4,525,000 Revs 91.3 mln vs 86.4 mln NOTE: 1987 3rd qtr includes a charge of 700,000 dlrs or 19 cts a share for relocation costs for phase out some operations.  
FAMILY STEAK HOUSES OF FLORIDA INC <RYFL.O> 3RD. Shr four cts vs two cts Net 406,659 vs 210,575 Revs 6,028,263 vs 3,654,810 nine mths Shr 11 cts vs seven cts Net 1,151,988 vs 576,358 Revs 16.9 mln vs 9,684,002 Avg shrs 10.9 mln vs 8,632,800  
ECOLAB INC <ECL> 3RD QTR OPER SHR. Oper shr 16 cts vs 34 cts Oper net 4,255,000 vs 9,299,000 Revs 294.4 mln vs 155.7 mln Nine mths Oper shr 1.24 dlrs vs 1.06 dlrs Oper net 33.0 mln vs 28.8 mln Revs 740.5 mln vs 457.5 mln NOTE: 1987 results include restructuring and non-recurring charge of 89 cts a share to restructure ChemLawn, acquired in April 1987, and other recent acquisitions. Results exclude gain on sale of discontinued operations of 97 mln dlrs or 3.60 dlrs a share in 1987 3rd qtr. Results also exclude income from discontinued operations of 3,063,000 dlrs in 1987 nine mths, of 503,000 dlrs or two cts in 1986 3rd qtr, and 5,804,000 dlrs or 21 cts in 1986 nine mths.  
MERCHANTS NATIONAL CORP <MCHN.O> 3RD QTR NET. Shr 75 cts vs 64 cts Net 11.0 mln vs 9,379,000 Nine mths Shr 44 cts vs 1.78 dlrs Net 6,411,000 vs 25.4 mln NOTE: 1987 nine mths net reflects 30 mln dlr addition to Latin American loan loss provision.  
LORAL CORP <LOR> 2ND QTR SEPT 30. Shr 70 cts vs 53 cts Net 17.3 mln vs 12.9 mln Revs 336.9 mln vs 157.5 mln Six mths Shr 1.34 dlrs vs 1.07 dlrs Net 33.0 mln vs 26.3 mln Revs 654.7 mln vs 310.1 mln Backlog 1.9 billion vs 851.8 mln  NOTE: Year ago qtr and six mths included after net charge of about four cts per shr representing the difference between a gain on the sale of securities and the write-off of certain nonrecurring costs. In addition, the six mths 1986 includes a 2.3 mln dlr gain on the sale of a unit and a one mln dlr writedown of a minority interest investment. Results for the qtr and the six mths in current year include Loral Systems Group, formerly Goodyear Aerospace, acquired in March 1987.  
CITIZENS AND SOUTHERN CORP <CSOU.O> 3RD QTR NET. Shr 75 cts vs 67 cts Qtly div 28 cts vs 25 cts prior Net 46.8 mln vs 39.8 mln Avg shrs 60.3 mln vs 57.7 mln Nine mths Shr 1.73 dlrs vs 1.95 dlrs Net 108.3 mln vs 114.7 mln Avg shrs 59.9 mln vs 56.8 mln NOTE: 1987 nine mths net includes special 15 mln dlr loan loss provision. 1987 nine mths net includes 16.6 mln dlr charge for settlement of suit. Dividend pay Dec 15, record Nov 30.  
ALEX BROWN INC <ABSB.O> 3RD QET. Sept 25 end Primary shr 31 cts vs 22 cts Diluted shr 30 cts vs 21 cts Net 5,019,000 vs 3,165,000 Revs 80.1 mln vs 57.2 mln Primary avg shrs 16,306,000 vs 14,495,000 Diluted avg shrs 17,266,000 vs 15,827,000  Nine months Primary shr 1.27 dlrs vs 1.07 dlrs Diluted shr 1.23 dlrs vs 1.03 dlrs Net 20.2 mln vs 15.5 mln Revs 244.5 mln vs 181.5 mln Primary avg shrs 15,875,000 vs 14,495,000 Diluted avg shrs 16,853,000 vs 15,280,000 NOTE: Results are pro forma, assuming that company was public throughout 1986. Company became public Feb 14, 1986.  
BANCTEXAS GROUP INC <BTX> 3RD QTR OPER LOSS. Oper shr loss 1.23 dlrs vs loss 57.50 dlrs Oper net loss 17,154,000 vs loss 26,953,000 Avg shrs 13,914,000 vs 476,000 Nine mths Oper shr loss 12.74 dlrs vs loss 76.94 dlrs Oper net loss 63,774,000 vs loss 35,207,000 Avg shrs 5,005,000 vs 474,000 Assets 785.3 mln vs 1.27 billion Deposits 625.6 mln vs 938.8 mln Loans 565.6 mln vs 826.9 mln NOTE: July 17, 1987, company completed recapitalization with injection of 200 mln dlrs in cash, 150 mln from the Federal Deposit Insurance Corp and 50 mln dlrs raised through a stock rights offering. 1987 qtr and nine mths exclude gain of 22 mln dlrs realized primarily from early settlement of debt in connection with the recapitalization and a three mln dlr loss on investment securities. 1986 qtr and nine mths exclude 3.6 mln dlr gain on investment securities. 1986 nine mths excludes gain of 3.4 mln dlrs from sale of subsidiary bank 1986 and 1987 shr and avg shrs restated for one-for-50 reverse stock split. Number of shrs outstanding at Sept 30, 1987, was 16,744.  
GOTAAS-LARSEN SHIPPING CORP <GOTLF.O> 3RD QTR. Shr 80 cts vs 62 cts Net 11.1 mln vs 8,545,000 Revs 68.6 mln vs 41.9 mln Nine mths Shr 1.96 dlrs vs 1.88 dlrs Net 26.8 mln 24.1 mln Revs 180.1 mln vs 126.3 mln  
GREATER NEW YORK SAVINGS BANK <GRTR.O> 3RD QTR. Shr 57 cts vs N/A Net 7,222,000 vs 6,959,000 Nine mths Shr N/A vs N/A Net 17.6 mln vs 24.8 mln Assets 2.7 billion vs 2.3 billion NOTE: Year-ago per shr amts not available as bank converted to stock ownership June 24, 1987. 1987 3rd qtr and nine mths has 2.9 mln and 7.4 mln dlrs for tax credits. 1986 3rd and nine mths 2.1 mln and 7.9 mln dlrs for tax credits.  
CONSOLIDATED FIBRES INC <CFIB.O> 1ST QTR NET. Qtr ended Sept 30 Shr 40 cts vs 20 cts Net 797,000 vs 403,000 Sales 30.8 mln vs 27.3 mln  
COMPUTER TASK GROUP INC <TSK> 3RD QTR NET. Shr 17 cts vs 16 cts Net 1,315,000 vs 1,161,000 Revs 43.2 mln vs 36.5 mln Avg shrs 7,916,000 vs 7,490,000 Nine mths Shr 50 cts vs 51 cts Net 3,899,000 vs 3,821,000 Revs 123.7 mln 104.6 mln Avg shrs 7,808,000 vs 7,491,000  
SIMPSON INDUSTRIES INC <SMPS.O> 3RD QTR NET. Shr 18 cts vs 24 cts Net 1,175,000 vs 1,528,000 Sales 34 mln vs 34.6 mln Nine mths Shr 56 cts vs 1.12 dlrs Net 3,578,000 vs 7,040,000 Sales 109.3 mln vs 116.6 mln Note: 1986 figures include 508,000 dlr gain or eight cts a share from discontinued operations  
NETWORK SYSTEMS CORP <NSCO.O> 3RD QTR NET. Shr 20 cts vs 16 cts Net 5,849,000 vs 4,630,000 Revs 33.8 mln vs 27.1 mln Nine mths Shr 41 cts vs 40 cts Net 11.9 mln vs 11.5 mln Revs 84.6 mln vs 77.2 mln  
PITTSBURGH AND WEST VIRGINIA <PW> 3RD QTR NET. Shr 14 cts vs 14 cts Net 213,000 vs 210,000 Revs 229 mln vs 229 mln Nine months Shr 42 cts vs 42 cts Net 630,000 vs 628,000 Revs 689,000 vs 689,000 NOTE: Full name Pittsburgh and West Virginia Railroad.  
NATIONAL MICRONETICS INC <NMIC.O> 1ST QTR. 1st qtr ended September 26. Shr profit two cts vs loss 20 cts Net profit 156,000 vs loss 1,816,000 Revs 8,751,000 vs 7,123,000  
PUBLIC SERVICE ENTERPRISE <PEG> 3RD QTR NET. Shr 78 cts vs 87 cts Net 159.3 mln vs 174.9 mln Revs one billion vs 1.06 billion Avg shrs 204,335,958 vs 200,471,561 Nine months Shr 2.18 dlrs vs 2.36 dlrs Net 443 mln vs 469.6 mln Revs 3.2 billion vs 3.4 billion Avg shrs 203,375,222 vs 199,108,842 12 months Shr 1.73 dlrs vs 2.44 dlrs Net 351.9 mln vs 481.5 mln Revs 4.3 billion vs 4.5 billion Avg shrs 202,900,311 vs 197,320,979 NOTE: Full name Public Service Enterprise Group Inc All results reflect three-for-two stock split, effective July 1, 1987.  
P AND C FOODS INC <FOOD.O> 3RD QTR OCT 3 NET. Shr 40 cts vs 35 cts Net 3,149,000 vs 2,433,000 Revs 225.4 mln vs 225.9 mln Avg shrs 7,800,000 vs 7,157,143 Nine mths Shr 91 cts vs 63 cts Net 7,114,000 vs 4,540,000 Revs 747.0 mln vs 728.2 mln Avg shrs 7,800,000 vs 6,767,143  
AMERICAN BUSINESS PRODUCTS INC <ABP> 3RD QTR. Oper shr 40 cts vs 47 cts Oper net 2,292,000 vs 2,688,000 Sales 81.9 mln vs 78.9 mln Nine mths Oper shr 1.20 dlrs vs 1.40 dlrs Oper net 6,842,000 vs 7,978,000 Sales 244.7 mln vs 234.2 mln NOTE: 1986 net both periods excludes 2,223,000 dlr special charge.  
BEMIS CO <BMS> 3RD QTR NET. Shr 61 cts vs 50 cts Net 8,273,000 vs 6,913,000 Sales 226.0 mln vs 215.9 mln Nine mths Shr 1.60 dlrs vs 1.25 dlrs Net 21,771,000 vs 17,369,000 Sales 688.3 mln vs 635.8 mln  
TOLLAND BANK FSB <TOBK.O> 2ND QTR NET. Sept 30 end Shr 27 cts Net 313,000 vs 323,000 Six months Shr 53 cts Net 607,000 vs 636,000 Assets 107.8 mln vs 77.1 mln NOTE: Company became public Dec 31, 1986  
WESTERN CO OF NORTH AMERICA <WSN> 3RD QTR LOSS. Shr loss 39 cts vs loss 4.83 dlrs Net 16.3 mln vs loss 223.0 mln Revs 47.4 mln vs 30.7 mln Nine mths Shr loss 3.37 dlrs vs loss 7.30 dlrs Net loss 151.6 mln vs loss 340.3 mln Revs 118.9 mln vs 161.8 ml  NOTE: 1987 qtr includes loss 1,500,000 dlrs for mobilization costs associated with two offshore drilling rigs. 1986 qtr includes charge 187 mln dlrs for write-down of oilfield services equipment and offshore drilling rigs.  
COACHMEN INDUSTRIES <COA> 3RD QTR NET. Shr loss eight cts vs profit six cts Net loss 669,609 vs profit 530,641 Sales 94.9 mln vs 83.9 mln Avg shrs 7,934,064 vs 8,220,797 Nine mths Shr profit 19 cts vs profit 55 cts Net profit 1,494,218 vs profit 4,486,510 Sales 289.1 mln vs 276.6 mln Avg shrs 7,930,961 vs 8,208,033  
DIAMOND CRYSTAL <DSLT.O> 2ND QTR SEPT 30 NET. Shr 69 cts vs 39 cts Net 1,767,000 vs 1,007,000 Sales 32.3 mln vs 29.2 mln Six mths Shr 53 cts vs 12 cts Net 1,348,000 vs 319,000 Sales 62.2 mln vs 55.2 mln NOTE: Full name is Diamond Crystal Salt Co.  
KMW SYSTEMS CORP <KMW> 1ST QTR NET. Sept 30 end Primary shr five cts vs eight cts Diluted shr five cts vs eight cts Net 100,000 vs 176,000 Revs 4,027,000 vs 3,649,000 Primary avg shrs 2,212,281 vs 2,189,000 Diluted avg shrs 2,212,281 vs 2,330,866 NOTE: 1986 results includes a tax credit of 90,000 dlrs  
INGERSOLL-RAND CO <IR> 3RD QTR NET. Shr 41 cts vs 39 cts Net 22.3 mln vs 20.4 mln Revs 631.1 mln vs 644.8 mln Avg shrs 51,551,000 vs 50,128,000 Nine months Shr 1.16 dlrs vs 1.13 dlrs Net 64.3 mln vs 59.6 mln Revs 1.90 billion vs 2.03 billion Avg shrs 50,868,000 vs 50,028,000  NOTE: All results reflect five-for-two common stock split payable in the form of a stock dividend payable July 10, 1987. 1986 results include gains from retroactive adoption of new accounting rules for pension on Jan 1, 1986 of 2.6 mln and 7.7 mln dlrs for third quarter and nine month periods, respectively. Company redeemed its outstanding preference stock, 2.35 dlrs convertible series on Sept 14, 1987.  
SJW CORP <SJW> 3RD QTR NET. Shr 1.15 dlrs vs 1.22 dlrs Net 3,301,000 vs 3,466,000 Revs 21.2 mln vs 20.8 mln Nine Mths Shr 2.38 dlrs vs 2.58 dlrs Net 6,873,000 vs 7,397,000 Revs 51.6 mln vs 50.3 mln  
ADOBE RESOURCES CORP <ADB> 3RD QTR NET. Shr loss two cts vs loss 41 cts Net profit 4,134,000 vs loss 3,682,000 Revs 22.8 mln vs 23.5 mln Nine mths Shr profit 44 cts vs loss 1.99 dlrs Net profit 25.6 mln vs loss 26.8 mln Revs 73.4 mln vs 86.7 mln NOTE: 1987 qtr and nine mths includes gain 1,374,000 dlrs, or five cts per share, and 10.2 mln dlrs, or 41 cts per share, respectively, from net operating loss carryforward. 1987 qtr and nine mths includes loss 4,850,000 dlrs, or 16 cts per share, and loss 14.6 mln dlrs, or 58 cts per share, respectively, from payment of preferred dividends. 1986 qtr and nine mths includes loss 4,850,000 dlrs, or 23 cts per share, and 14.6 mln dlrs, or 70 cts per share, respectively, from payment of preferred dividends.  
KENNER PARKER TOYS INC <KPT> 3RD QTR OPER. Oper shr 1.22 dlrs vs 88 cts Oper net 13.5 mln vs 11.7 mln Revs 139.1 mln vs 160.5 mln Nine mths Oper shr 2.00 dlrs vs 1.15 dlrs Oper net 22.8 mln vs 15.4 mln Revs 348.8 mln vs 385.9 mln NOTE: 1987 3rd qtr and nine mths oper net excludes gains from tax loss carryforwards of 3,067,000 dlrs and 8,548,000 dlrs respectively. 1986 3rd qtr and nine mths oper net excludes tax carryforward gains of 7,446,000 dlrs and 9,814,000 dlrs, respectively.  
TENNANT CO <TANT.O> 3RD QTR NET. Shr 50 cts vs 47 cts Net 2,646,000 vs 2,611,000 Sale 41.4 mln vs 38.7 mln Nine mths Shr 1.13 dlrs vs 1.04 dlrs Net 6,038,000 vs 5,545,000 Sales 117.2 mln vs 108.4 mln  
DE LAURENTIIS ENTERTAINMENT <DEG> 2ND QTR LOSS. Period ended August 31. Shr loss 52 cts vs profit 16 cts Net loss 4,987,000 vs profit 1,570,000 Revs 18.0 mln vs 24.7 mln Six Mths Shr loss 2.14 dlrs vs loss seven cts Net loss 20,525,000 vs loss 557,000 Revs 25.6 mln vs 30.8 mln Note: Full name De Laurentiis Entertainment Group Inc.  
ALBANY INTERNATIONAL CORP <AAICA.O> 3RD QTR NET. Shr 27 cts vs 17 cts Net 5,584,000 vs 4,276,000 Revs 97.7 mln vs 83.9 mln Nine mths Shr 84 cts vs 39 cts Net 17.7 mln vs 9,848,000 Revs 290.8 mln vs 241.8 mln Avg shrs 21.1 mln vs 25.1 mln  
AMERICAN BUSINESS PRODUCTS INC <ABP> 3RD QTR. Shr 40 cts vs eight cts Net 2,292,000 vs 465,000 Revs 81.9 mln vs 78.9 mln Nine mths Shr 1.20 dlrs vs 1.01 dlrs Net 6,842,000 vs 5,755,000 Revs 244.7 mln vs 234.2 mln NOTE: 1986 qtr and nine mths includes loss 2,223,000 dlrs, or 39 cts per share, from unspecified extraordinary item.  
ALLIED BANCSHARES INC <ALBN.O> 3RD QTR LOSS. Shr loss 2.51 dlrs vs loss 1.12 dlrs Net loss 104.2 mln vs loss 46.4 mln Nine mths Shr loss 5.80 dlrs vs loss 52 cts Net loss 240.9 mln vs loss 21.7 mln NOTE: 1987 qtr and nine mths includes loss 123.6 mln dlrs and 286.0 mln dlrs, respectively, for loan-loss allowance provision. 1987 qtr includes gain 9.4 mln dlrs from tax benefit.  
CENTRAL BANKING SYSTEM INC <CSYS.O> 3RD QTR NET. Shr 39 cts vs 27 cts Net 1,713,000 vs 1,207,000 Nine Mths Shr 1.13 dlrs vs 70 cts Net 4,935,000 vs 4,352,000 Loans 843.2 mln vs 937.2 mln Deposits 954.1 mln vs 1.043 billion Assets 1.09 billion vs 1.19 billion  
SEACOAST BANKING CORP OF FLORIDA <SBCF.O> 3RD. Shr 44 cts vs 33 cts Net 1,026,000 vs 769,000 Nine mths Shr 1.30 dlrs vs 1.06 dlrs Net 3,035,000 vs 2,472,000  
COEUR D'ALENE MINES CORP <COUR.O> 3RD QTR NET. Shr profit 47 cts vs loss 38 cts Net profit 4,767,000 vs loss 2,623,000 Revs 23.7 mln vs 3,629,000 Avg shrs 11,242,166 vs 6,895,290 Nine Mths Shr profit 89 cts vs loss 49 cts Net profit 7,726,000 vs loss 3,350,000 Revs 38.8 mln vs 7,172,000 Avg shrs 9,410,497 vs 6,895,290  
STRATHCONA RESOURCE <SRH.TO> 3RD QTR AUG 31 NET. Shr profit two cts vs nil Net profit 403,000 vs loss 51,000 Revs 9,609,000 vs 4,495,000 Nine mths Shr loss one ct vs loss four cts Net loss 171,000 vs loss 799,000 Revs 17.6 mln vs 13.3 mln NOTE: Full name is Strathcona Resource Industries Ltd.  
CORPORATE SOFTWARE INC <CSOF.O> 3RD QTR NET. Shr 13 cts vs 12 cts Net 470,000 vs 311,000 Revs 15.8 mln vs 8,176,000 Avg shrs 3,723,000 vs 2,512,000 Nine mths Shr 36 cts vs 43 cts Net 1,138,000 vs 993,000 Revs 40.5 mln vs 21.9 mln Avg shrs 3,199,000 vs 2,283,000  NOTE: 1986 includes extraordinary credit of 160,000 or six cts per shr in qtr 1986 and 511,000 or 22 cts per shr in nine mths 1986.  
SUSQUEHANNA CORP <SQN> 3RD QTR NET. Shr 17 cts vs seven cts Net 1,660,0009 vs 653,000 Revs 21.0 mln vs 20.6 mln Nine mths Shr 34 cts vs 12 cts Net 3,320,000 vs 1,109,000 Revs 60.1 mln vs 57.4 mln NOTE: Net includes loss from discontinued operations of 198,000 or two cts per shr in qtr 1986 and 1,425,000 or 15 cts per shr in nine mths 1986.  
DINNER BELL FOODS INC <DINB.O> 1ST QTR SEPT 26. Shr 4.41 dlrs vs seven cts Qtly div 10 cts vs 10 cts in prior qtr Net 2,955,000 vs 75,000 Sales 72.7 mln vs 70.0 mln NOTE: Net includes pre-tax gain of 7,813,0000 dlrs from termination of retirement plan for salaried employees and 875,000 dlrs charge for reorganization costs Dividend payable November 17 to holders of record November two  
PETROLANE PARTNERS L.P. <LPG> 3RD QTR LOSS. Shr loss five cts vs profit six cts Net loss 1,200,000 vs profit 1,400,000 Nine mths Shr profit 1.00 dlrs vs profit 84 cts Net profit 23.7 mln vs profit 19.9 mln NOTE: Year ago results are pro forma since the company was created in March by the transfer to a master limited partnership of all domestic assets of Petrolane Inc's liquefied petroleum gas division.  
EASTEK CORP <ESTK.O> 1ST QTR SEPT 30 LOSS. Shr loss 24 cts vs loss four cts Net loss 874,986 vs loss 56,182 Revs 402,855 vs not available NOTE: The company made its initial offering in March 1987 and before then had been a development stage company so no sales were posted in 1986.  
AMERICAN CAPITAL MANAGEMENT <ACA> 3RD QTR NET. Shr 26 cts vs 36 cts Net 6,400,000 vs 8,700,000 Revs 25.3 mln vs 28.2 mln Nine mths Shr 1.04 dlrs vs 1.20 dlrs Net 25.3 mln vs 29.1 mln Revs 84.6 mln vs 91.8 mln NOTE: Company's full name is American Capital Management and Research Inc.  
P AND C FOODS INC <FOOD.O> 3RD QTR NET. Oct 3 end Shr 40 cts vs 35 cts Net 3,149,000 vs 2,433,000 Revs 225.4 mln vs 225.9 mln Avg shrs 7,800,000 vs 7,157,143 Nine months Shr 91 cts vs 63 cts Net 7,114,000 vs 4,540,000 Revs 747 mln vs 728.2 mln Avg shrs 7,800,000 vs 6,767,143  
REGENCY ELECTRONICS INC <RGCY.O> 1ST QTR NET. Period ended September 30 Shr profit one ct vs loss three cts Net profit 65,000 vs 292,000 Sales 18.1 mln vs 16.7 mln  
QUAKER OATS CO <OAT> 1ST QTR SEPT 30 NET. Shr 52 cts vs 42 cts Net 41.1 mln vs 33.2 mln Sales 1.27 billion vs 960.3 mln Avg shrs 79,800,000 vs 78,200,000  
NL INDUSTRIES INC <NL> 3RD QTR NET. Shr profit two cts vs loss 58 cts Net profit 18.2 mln vs loss 23.9 mln Revs 355.6 mln vs 308.2 mln Nine mths Shr loss 81 cts vs loss 5.52 dlrs Net profit 10.7 mln vs loss 290.3 mln Revs 1.01 billion vs 983.3 mln NOTE: Net income per share is after deductions for mandatory preferred stock dividends and income from the chemical operations not attributable to common stockholders. 1987 qtr and nine mths includes gain of eight cts per share for the partial redemption of series a preferred stock which will be paid from the net earnings of the chemicals operations. 1986 nine mths includes loss 247.7 mln dlrs from write-down of petroleum service assets and other restructuring costs.  
IFR SYSTEMS INC <IFRS.O> 1ST QTR SEPT 30 NET. Shr 24 cts vs 13 cts Net 1,506,000 vs 824,000 Sales 9,045,000 vs 7,845,000  
ALCAN ALUMINIUM LTD <AL.TO> 3RD QTR NET. Shr 72 cts vs 36 cts Net 122 mln vs 62 mln Revs 1.73 billion vs 1.49 billion Avg shrs 157.7 mln vs 149.8 mln Nine mths Shr 1.71 dlrs vs 1.28 dlrs Net 297 mln vs 216 mln Revs 4.98 billion vs 4.55 billion NOTE: Net for current qtr included non-operating costs of 12 mln vs income of 10 mln in qtr 1986. Net in nine mths included non operating costs of 12 mln in nine mths 1987 vs income of 84 mln in nine mths 1986. Prior year's earnings per shr and average number of shrs outstanding have been restated to reflect a 3-for-2 split which became effective May 5, 1987. For purposes of comparability, following the reorganization of July 1987, net figures including those for 1986, are reported before preferred dividends.  
JOHN HANSON SAVINGS <JHSL.O> 1ST QTR NET. Sept 30 end Shr profit 15 cts vs loss six cts Net profit 901,000 vs loss 368,000 Assets 1.15 billion vs 773.8 mln  
MINNETONKA CORP <MINL.O> 3RD QTR NET. Periods end Sept 26 Shr 31 cts vs 24 cts Net 5,449,000 vs 4,083,000 Sales 60.3 mln vs 51.9 mln 39 weeks Shr 47 cts vs 30 cts Net 8,249,000 vs 5,147,000 Sales 145.0 mln vs 108.3 mln  
ELECTRONIC TELE-COMMUNICATIONS 3RD QTR LOSS. Shr Class A loss three cts vs profit 12 cts Shr Class B loss seven cts vs profit eight cts Net loss 94,862 vs profit 264,607 Sales 653,246 vs 1,300,515 Nine mths Shr Class A profit five cts vs profit 44 cts Shr Class B loss three cts vs profit 36 cts Net profit 64,248 vs profit 975,329 Sales 2,291,925 vs 4,235,914 NOTE: Full name is Electronic Tele-Communications Inc <ETCIA.O>  
SCHERING-PLOUGH CORP <SDG> 3RD QTR NET. Shr 63 cts vs 50 cts Net 73.8 mln vs 62.3 mln Sales 664.2 mln vs 600.6 mln Nine mths Shr 2.06 dlrs vs 1.67 dlrs Net 241.2 mln vs 205.9 mln Sales 2.04 billion vs 1.80 billion Avg shrs 117.1 mln vs 123.4 mln  
REPUBLIC AMERICAN CORP <RAWC.O> 3RD QTR NET. Shr 36 cts vs 35 cts Net 7,100,000 vs 8,000,000 Net Premiums 61.2 mln vs 58.0 mln Avg shrs 19,950,000 vs 22,760,000 Nine mths Shr 1.03 dlrs vs 1.81 dlrs Net 21.3 mln vs 37.8 mln Net Premiums 176.3 mln vs 141.8 mln Avg shrs 20,682,000 vs 20,920,000  
LACLEDE STEEL CO <LCLD.O> 3RD QTR NET. Shr 32 cts vs 40 cts Net 882,000 vs 1,109,000 Sales 66.1 mln vs 60.3 mln Nine mths Shr 1.13 dlrs vs 90 cts Net 3,065,000 vs 2,446,000 Sales 198.1 mln vs 178.5 mln  
<REDLAKE CORP> 2ND QTR SEPT 30 NET. Shr profit five cts vs loss nine cts Net profit 21,045 vs loss 34,238 Revs 1,156,775 vs 963,890 Six Mths Shr profit 12 cts vs loss five cts Net profit 48,711 vs loss 18,300 Revs 2,124,157 vs 2,009,956  
KOLLMORGEN CORP <KOL> 3RD QTR NET. Shr profit 15 cts vs loss 40 cts Net profit 1,538,000 vs loss 4,088,000 Revs 70.6 mln vs 73.2 mln Nine mths Shr loss eight cts vs loss 57 cts Net loss 832,000 vs loss 5,821,000 Revs 217.0 mln vs 248.4 mln NOTE: 1987 qtr and nine mths includes gain 265,000 dlrs, or three cts per share, from utilization of tax loss carryforward.  
FARM FRESH INC <FFSH.O> 3RD QTR NET. Shr one cts vs 20 cts Net 122,556 vs 2,627,205 Revs 192.2 mln vs 193.3 mln Nine mths Shr 27 cts vs 56 cts Net 3,556,424 vs 7,531,664 Revs 560.6 mln vs 542.3 mln  
FIRST REPUBLICBANK <FRB.N> CORP 3RD QTR LOSS. shr diluted loss 46 cts net loss 6,300,000 nine mths shr diluted loss 10.89 dlrs net loss 309,100,000 NOTE: No comparisons because company was formed in June 1987 through merger of RepublicBank Corp and Interfirst Corp. Nine mths includes previously reported provision of 325 mln dlrs in second quarter for possible losses on ldc loans.  
CONTINENTAL INFORMATION SYSTEMS CORP <CNY> 2ND. Shr 22 cts vs 24 cts Net 2,794,000 vs 2,993,000 Revs 91.4 mln vs 66.4 mln Six mths Shr 45 cts vs 39 cts Net 5,677,000 vs 5,700,000 Revs 174.6 mln vs 132.8 mln NOTE: 2nd qtr end August 31. Per share amounts adjusted for 10 pct stock dividend paid June two, 1987.  
TENERA LTD <TLPZZ.O> 3RD QTR NET. Shr 25 cts vs 26 cts Net 2,200,000 vs 2,100,000 Revs 8,500,000 vs 9,600,000 Nine mths Shr 77 cts vs 63 cts Net 6,900,000 vs 4,800,000 Revs 27.9 million vs 25.3 million  
ATLANTIC AMERICAN CORP <AAME.O> 3RD QTR NET. Shr profit seven cts vs loss 24 cts Net profit 650,000 vs loss 2,327,000 Revs 34.3 mln vs 37.0 mln Nine mths Shr profit 38 cts vs profit 67 cts Net profit 3,673,000 vs profit 6,474,000 Revs 108.4 mln vs 110.0 mln NOTE: 1987 qtr and nine mths includes gain 5,360,000 dlrs, or 55 cts per share, and 6,339,000 dlrs, or 65 cts per share, respectively, from realized gains on investments.  1986 qtr and nine mths includes gain 105,000 dlrs, or one cent per share, and 342,000 dlrs, or three cts per share, respectively, from realized gains on investments. 1986 qtr and nine mths includes charge 4,860,000, or 50 cts per share from strengthening reserve for casualty claims.  
TRINITY INDUSTRIES INC <TRN> 2ND QTR SEPT 30. Shr six cts vs 17 cts Net 1,064,000 vs 2,676,000 Revs 144.6 mln vs 129.4 mln Avg shrs 17.1 mln 16.1 mln Six mths Shr 13 cts vs 25 cts Net 2,167,000 vs 4,029,000 Revs 248.0 mln vs 249.2 mln Avg shrs 17.1 mln vs 16.1 mln  
DART GROUP DROPS DAYTON HUDSON <DH> TAKEOVER BID. Dart Group Corp <DARTA.O> affiliate Madison Partners said that given current market conditions it has dropped its takeover bid for Dayton Hudson Corp. The company said it sold 1.4 mln of its 4.6 mln shares of Dayton Hudson stock. It said it intends to sell the rest of its Dayton Hudson shares. At current market levels, it would suffer a 70 mln dlr aftertax loss on its holding, a spokesman said. Dart said it will not solicit authorization to call a meeting of Dayton Hudson shareholders. Dart had offered to buy Dayton Hudson for 68 dlrs per share, valuing the Minneapolis based retailer at 6.6 billion dlrs. That offer was rejected by the company. Following the selloff in takeover stocks last week, and the market's decline this week, Dayton Hudson stock closed at 27-1/2 today, off 2-1/2. Dart's holdings amounted to just under five pct of Dayton Hudson. A Dart spokesman said the 1.4 mln shares were sold in the market today.  
BII ENTERPRISES <BII.TO> NINE MTHS AUG 31 NET. Shr 22 cts vs 50 cts Net 1.2 mln vs 2.2 mln Sales 41.7 mln vs 38.3 mln Note: BII Enterprises Inc  
ZERO CORP <ZRO> 2ND QUARTER NET. Shr 27 cts vs 20 cts Net 3,411,000 vs 2,487,000 Revs 34.7 mln vs 31.9 mln Six mths Shr 51 cts vs 41 cts Net 6,372,000 vs 5,090,000 Revs 68.1 mln vs 63.7 mln Avg shrs 12.6 mln vs 12.5 mln  
SEALED AIR CORP <SEE> 3RD QTR NET. Shr 54 cts vs 53 cts Net 4,193,000 vs 4,052,000 Revs 75.2 mln vs 63.9 mln Nine mths Shr 1.98 dlrs vs 1.75 dlrs Net 15.4 mln vs 13.5 mln Revs 223.4 mln vs 199.5 mln  
CALIFORNIA FIRST BANK (CFBK.O) 3RD QTR NET. Shr 83 cts vs 67 cts Net 10,052,000 vs 7,929,000 Avg shrs 12,161,000 vs 11,824,000 Nine mths Shr 2.33 dlrs vs 1.91 dlrs Net 28,110,000 vs 22,386,000 Avg shrs 12,078,000 vs 11,729,000 Assets 5.9 billion vs 5.7 billion Deposits 5.3 billion vs 4.8 billion Loans and leases 4.2 billion vs 4.0 billion  
RPC ENERGY SERVICES INC <RES> 1ST QTR SEPT 30. Shr profit one cent vs loss 29 cts Net profit 116,000 vs loss 4,195,000 Revs 20.2 mln vs 6,393,000  
BRENTON BANKS <BRBK.O> 3RD QTR OPER NET. Oper shr 38 cts vs 1.84 dlrs Oper net 973,000 vs 4,497,000 Nine mths Oper shr 1.22 dlrs vs 1.31 dlrs Oper net 3,133,000 vs 3,410,000 NOTE: Results exclude extraordinary gain from net loss carryforward of 672,000 dlrs or 27 cts in 1987 3rd qtr, 918,000 dlrs 38 cts in 1986 3rd qtr, and 1,071,000 dlrs or 44 cts in 1987 nine months. 1986 results include 5.1 mln dlr gain from termination of defined benefit pension plan.  
BUDGET RENT A CAR CORP <BDGT.O> 3RD QTR NET. Shr 51 cts vs 36 cts Net 5,600,000 vs 4,000,000 Revs 115.4 mln vs 91.2 mln Nine mths Shr 1.13 dlrs vs 61 cts Net 10.7 mln vs 5,800,000 Revs 308.2  mln vs 249.5 mlln NOTE: 1986 resutls restated on pro forma basis to reflect comparable treatment of Budget's leveraged buyout on September 30, 1986, and initial common stock offering on May 22, 1987.  
USPCI INC <UPC> 3RD QTR NET. Shr 12 cts vs 10 cts Net 1,600,000 vs 1,314,000 Revs 17.6 mln vs 12.2 mln Nine mths Shr 58 cts vs 43 cts Net 7,624,000 vs 5,336,000 Revs 56.8 mln vs 40.1 mln  
SOMERSET BANCORP INC <SOMB.O> 3RD QTR NET. Net 1,137,000 vs 1,185,000 Nine mths Shr 2.17 dlrs vs 2.03 dlrs Net 3,645,000 vs 3,384,000 Assets 374.4 mln vs 355.4 mln NOTE: Per shr data in qtr not disclosed.  
CPT CORP <CPTC.O> 1ST QTR SEPT 30 LOSS. Shr loss 15 cts vs loss 19 cts Net loss 2,161,000 vs loss 2,873,000 Revs 24.5 mln vs 22.6 mln  
THE CHARIOT GROUP INC <CGR> 3RD QTR NET. Shr 10 cts vs two cts Net 262,000 vs 38,000 Revs 11.2 mln vs 5,858,000 Avg shrs 2,589,045 vs 2,588,364 Nine mths Shr 46 cts vs 26 cts Net 1,179,000 vs 601,000 Revs 32.7 mln vs 18.7 mln NOTE: All per shr data adjusted to reflect 10 pct stock dividend distributed in 2nd qtr 1987.  
COMSHARE INC <CSRE.O> 1ST QTR SEPT 30 LOSS. Shr loss 35 cts vs profit 18 cts shr Net loss 946,300 vs profit 502,500 Revs 17.3 mln vs 16.8 mln  
MARINE CORP <MCRP.O> 3RD QTR NET. Shr 1.24 dlrs vs 1.16 dlrs Net 10.1 mln vs 8,910,000 Nine mths Shr 2.42 dlrs vs 3.30 dlrs Net 19.8 mln vs 25.4 mln Assets 4.3 billion vs 3.8 billion Deposits 3.4 billion vs 3.1 billion Loans 2.6 billion vs 2.3 billion  
CONTINENTAL INFORMATION SYSTEMS <CNY> 2ND QTR. Qtr ends Aug 31 Shr 22 cts vs 24 cts Net 2,794,000 vs 2,993,000 Revs 91.4 mln vs 66.4 mln Six mths Shr 45 cts vs 45 cts Net 5,677,000 vs 5,700,000 Revs 174.6 mln vs 132.8 mln NOTE: full name of company is continental information systems corp.  
FAMILY DOLLAR STORES INC <FDO> 4TH QTR AUG 31. Shr 15 cts vs 27 cts Net 4,358,947 vs 7,786,640 Revs 140.8 mln vs 121.2 mln Year Shr 86 cts vs 1.06 dlrs Net 24.8 mln vs 30.5 mln Revs 560.3 mln vs 487.7 mln  
ALFA CORP <ALFA.O> 3RD QTR NET. Shr 28 cts vs 21 cts Net 4,653,815 vs 3,564,451 Revs 34.0 mln vs 12.8 mln Nine mths Shr 61 cts vs 53 cts Net 10.4 mln vs 8,881,825 Revs 61.8 mln vs 38.4 mln NOTE: Per shr amounts are after giving retroactive effect for a 2-for-1 split effected as a 100 pct stock dividend which was paid June 1, 1987.Net includes net realized investment gains of 1,213,471 vs 937,801 in nine mths 1987 vs 1986, and 604,172 vs 474,556 in qtr 1987 vs 1986. Net includes net investment income of 12.5 mln vs 11.2 mln in nine mths 1987 vs 1986, and 4,480,540 vs 3,781,245 in qtr 1987 vs 1986.  
INVITRON CORP <INVN.O> 1ST QTR SEPT 30 NET. Shr eight cts vs 12 cts Net 1,016,552 vs 980,834 Revs 6,786,579 vs 4,356,561 NOTE: Invitron went public on October seven.  
SQUIBB CORP <SQB> 3RD QTR NET. Shr 1.04 dlrs vs 78 cts Net 109.2 mln vs 83.9 mln Revs 561.3 mln vs 460.5 mln Nine mths Shr 2.61 dlrs vs 1.91 dlrs Net 273.8 mln vs 206.6 mln Revs 1.56 billion vs 1.27 billion NOTE: Per shr amounts reflect the 2-for-1 split to shareholders of record on June 1, 1987.  For qtr and nine mths 1987, exchange rate fluctuations had a favorable sales impact of 25.9 mln dlrs and 70.3 mln dlrs, respectively. Net in nine mths 1986 includes income from discontinuing operations of 10.1 mln or nine cts per shr, and income of 3.9 mln dlrs or four cts per shr in qtr 1986.  
CP NATIONAL CORP <CPN> 3RD QTR NET. Shr 46 cts vs 55 cts Net 3,532,000 vs 4,217,000 Revs 54 mln vs 52.4 mln Nine mths Shr 1.97 dlrs vs 1.98 dlrs Net 15.0 mln vs 14.8 mln Revs 176.2 mln vs 176.9 mln  
GREAT AMERICAN FIRST SAVINGS <GTA> 3RD QTR NET. Shr primary 92 cts vs 1.09 dlrs Shr diluted 82 cts vs 97 cts Net 21.8 mln vs 26.1 mln Nine mths Shr primary 3.07 dlrs vs 2.96 dlrs Shr diluted 2.72 dlrs vs 2.44 dlrs Net 73.2 mln vs 65.3 mln Assets 14.29 billion vs 12.35 billion Deposits 9.52 billion vs 8.69 billion Loans 8.79 billion vs 8.69 billion  
SMITHKLINE BECKMAN CORP <SKB> 3RD QTR NET. Shr 1.18 dlrs vs 87 cts Net 149.6 mln vs 134.0 mln Revs 1.10 billion vs 956.4 mln Nine mths Shr 3.36 dlrs vs 2.42 dlrs Net 428.1 mln vs 373.7 mln Revs 3.13 billion vs 2.70 billion Avg shrs 127.3 mln vs 154.5 mln NOTE: 1986 results include 25 mln dlr reduction of operating income for the relaunch of Contac.  
THE DEXTER CORP <DEX> 3RD QTR NET. Shr 41 cts vs 33 cts Net 10.2 mln vs 8,309,000 Revs 193.3 mln vs 157.7 mln Nine months Shr 1.29 dlrs vs 1.02 dlrs Net 32.1 mln vs 25.4 mln Revs 582 mln vs 486.5 mln  
WASHINGTON MUTUAL SAVINGS BANK <WAMU.O> 3RD QTR NET. Shr 56 cts vs 68 cts Net 8,327,000 vs 9,738,000 Nine mths Shr 2.19 dlrs vs 1.67 dlr Net 32.8 mln vs 24.8 mln Avg shrs 15.0 mln vs 14.9 mln Assets 5.58 billion vs 4.34 billion Deposits 3.60 billion vs 3.27 billion Loans 2.96 billion vs 2.90 billion  
TRINITY INDUSTRIES INC <TRN> 2ND QTR NET. Sept 30 end Shr six cts vs 17 cts Net 1,064,000 vs 2,676,000 Revs 144.6 mln vs 129.4 mln Avg shrs 17,121,000 vs 16,065,000 Six months Shr 13 cts vs 25 cts Net 2,167,000 vs 4,029,000 Revs 248 mln vs 249.2 mln Avg shrs 17,121,000 vs 16,065,000  
CAPITOL BANCORP <CAPB.O> 3RD QTR NET. Shr profit 1.07 dlrs vs loss 1.19 dlrs Net profit 3,326,000 vs loss 3,446,000 Nine mths Net profit 9,714,000 vs profit 3,665,000 NOTE: Latest and prior nine month per share amounts not given.  
<POTASH CO OF AMERICA INC> NINE MTHS LOSS. Shr loss 1.73 dlrs vs nil Net loss 16.3 mln vs profit 2,206,000 Sales 69.1 mln vs 29.1 mln Note: per share is after payment of preferred dividends.  
JEPSON CORP <JEPS.O> 3RD QTR NET. Shr 22 cts vs 20 cts Net 4,033,000 vs 3,398,000 Sales 125.3 mln vs 99.1 mln Avg shrs 18.4 mln vs 17.5 mln Nine mths Shr 89 cts vs 78 cts Net 15.9 mln vs 13.6 mln Sales 413.7 mln vs 345.0 mln Avg shrs 17.8 mln vs 17.5 mln  NOTE:1987 3rd qtr per share reflects issuance of two mln shares in initial public offering. 1986 nine mth results include extraordinary gain of 3,843,000 dlrs or 22 cts  
BANKING CENTER <TBCX.O> 3RD QTR NET. Shr 25 cts vs NA Net 3,081,000 vs 2,063,000 Nine mths Shr 86 cts vs NA Net 10.5 mln vs 6,966,000 NOTE: Year-ago per share amounts not available as bank converted to stock ownership August 13, 1986. 1987 amounts include operations of Burgdoff Realtors acquired during December 1986 and other operations.  
SUN STATE SAVINGS <SSSL.O> 3RD QTR NET. Shr 28 cts vs 46 cts Net 1,634,000 vs 2,007,000 Avg shrs 5,850,000 vs 4,400,000 Nine Mths Shr 82 cts vs 1.77 dlrs Net 4,788,000 vs 7,792,000 Avg shrs 5,850,000 vs 4,400,000 Loans 586.9 mln vs 481.5 mln Deposits 697.4 mln vs 606.2 mln Assets 797.2 mln vs 683.4 mln Note: Full name Sun State Savings and Loan Association.  
CALIFORNIA WATER SERVICE CO <CWTR.O> 3RD QTR. Shr 2.10 dlrs vs 1.83 dlrs Net 5,919,000 vs 5,168,000 Revs 35.0 mln vs 34.3 mln Nine Mths Shr 5.09 dlrs vs 3.55 dlrs Net 14,391,000 vs 10,099,000 Revs 88 mln vs 83.7 mln Note: Curent nine mth figures include 2.2 mln dlr, or 79 cts per share, gain resulting from change in accounting method for unbilled revenues.  
AMERICAN FRUCTOSE CORP <AFC> 3RD QTR NET. Shr 38 cts vs 52 cts Net 3,980,000 vs 5,524,000 Revs 37.4 mln vs 44.8 mln Nine mths Shr 76 cts vs 99 cts Net 7,983,000 vs 10.5 mln Revs 100.4 mln vs 123.6 mln NOTE: 1987 qtr and nine mths includes loss 9,000 dlrs and 432,000 dlrs, or four cts per share, from repurchase and retirment of debt.  
A.H. BELO CORP <BLC> 3RD QTR NET. Shr 59 cts vs 27 cts Net 6,398,000 vs 2,979,000 Revs 91.0 mln vs 94.1 mln Avg shrs 10.8 mln vs 11.2 mln Nine mths Shr 1.58 dlrs vs 1.06 dlrs Net 17.2 mln vs 12.2 mln Revs 279.7 mln vs 289.1 mln Avg shrs 10.9 mln vs 11.4 mln  
CLEVELAND-CLIFFS INC <CLF> 3RD QTR NET. Shr loss nine cts vs loss 1.03 dlrs Net profit 100,000 vs loss 11.6 mln Revs 125.2 mln vs 71.8 mln Nine mths Shr loss 2.46 dlrs vs loss 98 cts Net loss 26.9 mln vs loss 8.5 mln Revs 355.4 mln vs 215.6 mln NOTE: 1987 qtr includes loss 5.9 mln dlrs non-recurring after-tax charges due almost entirely to the company's recent buyout of its Tilden Mine debt obligations.  1987 nine mths includes loss 23.7 mln dlrs pre-tax charge to reduce the carrying value of the company's 17 land drilling rigs. 1987 nine mths includes pre-tax gain 1.2 mln dlrs on sale of uranium reserves. 1986 nine mths includes pre-tax gain 20.6 mln dlrs on sale of iron ore interest in western Australia.  
CADE INDUSTRIES INC <CADE.O> 3RD QTR NET. Shr three cts vs two cts Net 456,000 vs 272,000 Sales 15 mln vs 14.4 mln Nine mths Shr six cts vs 23 cts Net 992,000 vs 3,812,000 Sales 41.1 mln vs 45.4 mln Order backlog 46 mln vs 24.3 mln Note: 1986 figures include a gain of 2.9 mln dlr or 17 cts a share from life insurance proceeds.  
ABITIBI-PRICE INC <AIB.TO> 3RD QTR OPER NET. Oper shr 45 cts vs 42 cts Oper net 33.0 mln vs 31.1 mln Revs 749.8 mln vs 716.5 mln Nine mths Oper shr 1.23 dlrs vs 1.11 dlrs Oper net 91.1 mln vs 81.3 mln Revs 2.2 billion vs 2.1 billion NOTE: Prior nine mths and qtr excludes loss of 2.3 mln dlrs due to discontinued operations.  
SIGNET BANKING CORP <SBK> 3RD QTR NET. Shr 92 cts vs 91 cts Net 24.1 mln vs 22.7 mln Avg shrs 25.4 mln vs 24.8 mln Nine mths Shr 20 cts vs 2.58 dlrs Net 6,028,000 vs 62.7 mln Avg shrs 25.4 mln vs 24.3 mln Assets 10.3 billion vs 9.21 billion Deposits 7.10 billion vs 6.32 billion Loans 6.52 billion vs 5.60 billion  
AMERICAN MANAGEMENT SYSTEMS <AMSY.O> 3RD QTR NET. Shr 18 cts vs 14 cts Net 1,852,000 vs 1,488,000 Revs 44.7 mln vs 35.9 mln Nine mths Shr 41 cts vs 34 cts Net 4,233,000 vs 3,512,000 Revs 123.8 mln vs 98.4 mln NOTE: Full Name is American Management Systems Inc.  
SCICOM DATA <SCIE.O> 1ST QTR SEPT 30 NET. Shr 23 cts vs 18 cts Net 249,920 vs 194,369 Revs 3,752,641 vs 3,355,563 NOTE: Full name is Scicom Data Services Ltd.  
<ACC CORP> 3RD QTR NET. Shr profit three cts vs profit nine cts Net profit 102,136 vs profit 307,516 Revs 8,549,182 vs 8,469,476 Nine mths Shr loss 13 cts vs profit 28 cts Net loss 458,823 vs profit 1,014,969 Revs 25.5 mln vs 24.6 mln  
WESTPORT BANCORP <WEBAT.O> 3RD QTR NET. Shr 19 cts vs 38 cts Net 397,000 vs 788,000 Nine mths Shr 80 cts vs 1.19 dlrs Net 1,674,000 vs 2,455,000 NOTE: Company would not provide assets, deposits, and loans figures.  
GATEWAY FEDERAL SAVINGS <GATW.O> 3RD QTR NET. Shr 99 cts vs not given Net 1,943,000 vs not given Nine mths Shr 2.35 dlrs vs not given Net 4,602,000 vs not given NOTE: Full name is Gateway Federal Savings and Loan Association. Latest qtr includes a tax credit of 909,000 dlrs or 46 cents a share. Latest nine mths includes a tax credit of 2,330,000 dlrs or 1.19 dlrs. 1986 figures not given as company went public on June 2, 1987.  
KMW SYSTEMS CORP <KMWS.O> 1ST QTR SEPT 30. Shr five cts vs eight cts Net 100,000 vs 176,000 Revs 4,027,000 vs 3,649,000 NOTE: 1986 qtr includes gain 90,000 dlrs, or four cts per share, from tax gain.  
POLAROID CORP <PRD> 3RD QTR SEPT 27. Shr 39 cts vs 39 cts Net 24.4 mln vs 23.8 mln Revs 425.9 mln vs 396.2 mln Nine mths Shr 1.23 dlrs vs 1.04 dlrs Net 76.3 mln vs 64.1 mln Revs 1.26 billion vs 1.12 billion NOTE: Net adjusted to account for the recent 2-for-1 split of the company's common.  Qtr 1986 includes a seven cts per shr gain due to net after-tax foreign currency exchange effect.  
MORRISON KNUDSEN CORP <MRN> 3RD QTR LOSS. Oper shr loss 2.51 dlrs vs profit 94 cts Oper net loss 27.2 mln vs profit 10.3 mln Revs 464.2 mln vs 504.6 mln Nine mths Oper shr loss 1.33 dlrs vs profit 2.57 dlrs Oper net loss 14.4 mln vs profit 28.2 mln Revs 1.41 billion vs 1.55 billion  NOTE: 1987 qtr and nine mths excludes loss 41.1 mln dlrs, or 3.79 dlrs per share, and loss 41.8 mln dlrs, or 3.87 dlrs per share, respectively, from discontinued real estate operations. 1986 qtr and nine mths include loss 126,000 dlrs, or one cent per share, and gain 304,000 dlrs, or three cts per share, respectively, from discontinued operations.  
WESTPORT BANCORP <WEBAT.O> 3RD QTR NET. Shr 19 cts vs 38 cts Net 397,000 vs 788,000 Nine mths Shr 80 cts vs 1.19 dlrs Net 1,674,000 vs 2,455,000 NOTE: Company would not provide assets, deposits, and loans figures.  
CTS CORP <CTS> 3RD QTR OPER NET. Oper shr profit 62 cts vs profit seven cts Oper net profit 3,492,000 vs profit 401,000 Revs 62.8 mln vs 62.0 mln Nine mths Oper shr profit 1.26 dlrs vs loss 42 cts Oper net profit 7,131,000 vs loss 2,344,000 Revs 190.3 mln vs 180.0 mln NOTE: 1986 period ended September 28. Results exclude extraordinary gain from net loss carryforward of 228,000 dlrs or three cts a shr in the 1987 3rd qtr and 1,043,000 dlrs or 18 cts in the 1987 nine mths. 1986 nine mth results exclude earnings from discontinued operations of 7,549,000 dlrs or 1.34 dlrs.  
AMCA INTERNATIONAL <AIL> 3RD QTR LOSS. Shr loss two cts vs loss 1.79 dlrs Net profit 4,959,000 vs loss 56.2 mln Revs 290.3 mln vs 245.0 mln Nine mths Shr loss 75 cts vs loss 1.78 dlrs Net loss 9,390,000 vs loss 44.2 mln Revs 800.8 mln vs 838.6 mln NOTE: Full name is AMCA International Ltd. Results in U.S. dlrs. Latest qtr earnings include pension refund of 10 mln dlrs, representing loss of two cts per shr after payment of preferred dividends.  
VALLEY CAPITAL CORP <VCCN.O> 3RD QTR NET. Shr 1.17 dlrs vs 80 cts Net 5,500,000 vs 3,500,000 Nine months Shr 3.30 dlrs vs 2.10 dlrs Net 15.1 mln vs 9.2 mln Assets 1.6 billion vs 1.4 billion Deposits 1.3 billion vs 1.1 billion Loans 947.0 mln vs 822.0 mln  
SPECIALTY COMPOSITES CORP <SPCM.O> 3RD QTR NET. Shr 11 cts vs nine cts Net 105,489 vs 88,929 Revs 2,306,697 vs 2,066,636 Nine mths Shr 17 cts vs 14 cts Net 167,960 vs 136,856 Revs 6,714,468 vs 6,026,343 NOTE: 1987 qtr and nine mths includes tax gain 64,200 dlrs and 102,200 dlrs, respectively. 1986 qtr and nine mths includes tax gain 78,000 dlrs and 107,000 dlrs, respectively.  
BULCAN CORP <BUL> 3RD QTR NET. Shr five cts vs seven cts Net 80,642 vs 115,222 Revs 7,833,570 vs 5,739,443 Nine mths Shr five cts vs 1.11 dlrs Net 80,773 vs 1,743,828 Revs 21.6 mln vs 16.3 mln  
CHEMED CORP <CHE> 3RD QTR NET. Primary shr 68 cts vs 65 cts Diluted shr 62 cts vs 60 cts Net 6,053,000 vs 5,803,000 Revs 101.4 mln vs 94.8 mln Primary avg shrs 8,955,000 vs 8,963,000 Diluted avg shrs 11,031,000 vs 11,010,000  Nine months Primary shr 1.74 dlrs vs 1.83 dlrs Diluted shr 1.64 dlrs vs 1.69 dlrs Net 15.6 mln vs 16.3 mln Revs 291.4 mln vs 266.7 mln Primary avg shrs 8,974,000 vs 8,936,000 Diluted avg shrs 11,053,000 vs 10,994,000 NOTE: 1986 third qtr results exclude extraordinary 811,000 dlr gain from termination of a pension plan. 1986 nine month results include 1,804,000 dlr gain from June 1986 sale of National Sanitary Supply common stock in an initial offering.  
WALTHAM CORP <WLBK.O> 3RD QTR NET. Shr 27 cts vs 21 cts Net 988,000 vs 784,000 Nine mths Shr 82 cts Net 3,040,000 vs 2,089,000 Assets 284.2 mln vs 244.0 mln Loans 203.7 mln vs 133.5 mln Deposits 211.7 mln vs 179.5 mln NOTE: 1986 nine mths per share not available because bank did not convert to stock form until May 22, 1986.  
NATIONAL BANC OF COMMERCE CO <NBCC.O> 3RD QTR. Shr 41 cts vs 47 cts Net 1,002,000 vs 931,000 Avg shrs 2,452,171 vs 1,975,422 Nine mths Shr 1.23 dlrs vs 1.41 dlrs Net 3,014,000 vs 2,776,000 Avg shrs 2,444,591 vs 1,967,539  
EDAC TECHNOLOGIES CORP <EDAC.O> 3RD QTR NET. Shr three cts vs two cts Net 109,000 vs 67,000 Sales 11.3 mln vs 11.3 mln Nine mths Shr seven cts vs 99 cts Net 221,000 vs 3,213,000 Sales 30.6 mln vs 35.9 mln Order backlog 22.7 mln vs 13.5 mln Note: 1986 figures include life insurance proceeds of 2.5 mln dlr or 78 cts a share.  
AUTOTROL CORP <AUTR.O> 3RD QTR NET. Shr profit 22 cts vs loss 22 cts Net profit 430,373 vs loss 433,395 Sales 7,723,838 vs 6,219,157 Nine mths Shr profit 49 cts vs loss 1.20 dlrs Net profit 960,008 vs loss 2,338,286 Sales 23.2 mln vs 19.9 mln NOTE: 1986 data restated to reflect operations discontinued in 1986 1986 earnings exclude loss from discontinued operations of 319,055 dlrs, or 16 cts a share in the quarter and 906,962 dlrs, or 46 cts a share for the nine months  
19-OCT-1987. 19-OCT-1987 
CNB BANCSHARES INC <CNBE.O> 3RD QTR NET. Shr 52 cts vs 45 cts Net 2,623,000 vs 2,256,000 Nine mths Shr 1.55 dlrs vs 1.45 dlrs Net 7,744,000 vs 6,542,000  
NATIONAL SANITARY SUPPLY CO <NSSX.O> 3RD QTR. Shr 16 cts vs 14 cts Net 954,000 vs 777,000 Revs 24.7 mln vs 21.5 mln Avg shrs 6,000,000 vs 6,000,000 Nine mths Shr 39 cts vs 34 cts Net 2,314,000 vs 1,805,000 Revs 69.2 mln vs 59.3 mln Avg shrs 6,000,000 vs 5,363,000  
EASTERN UTILITIES ASSOCIATES 3RD QTR NET. Shr 86 cts vs 74 cts Net 11.1 mln vs 8.6 mln Revs 87.7 mln vs 80.5 mln Avg shrs 12,857,904 vs 11,578,259 Nine mths Shr 2.61 dlrs vs 2.15 dlrs Net 32.6 mln vs vs 24.8 mln Revs 269.8 mln vs 257.8 mln Avg shrs 12,482,780 vs 11,502,035 12 mths Shr 3.28 dlrs vs 2.80 dlrs Net 40.3 mln vs 32.1 mln Revs 355.4 mln vs 342.1 mln Avg shrs 12,271,220 vs 11,457,028  
CONSOLIDATED FREIGHTWAYS INC <CNF> 3RD QTR NET. Shr 43 cts vs 63 cts Net 16,362,000 vs 24,325,000 Revs 589.3 mln vs 549.1 mln Nine Mths Shr 1.40 dlrs vs 1.73 dlrs Net 54,011,000 66,591,000 Revs 1.68 1.58 billion  
ROCHESTER TELEPHONE CORP <RTC> 3RD QTR NET. Shr 96 cts vs 87 cts Net 10.8 mln vs 9,671,000 Revs 103.9 mln vs 97.5 mln Nine mths Shr 2.73 dlrs vs 2.62 dlrs Net 30.7 mln vs 29.3 mln Revs 325.7 mln vs 302.8 mln  
SOUTH CAROLINA NATIONAL CORP <SCNC.O> 3RD QTR. Shr 64 cts vs 55 cts Net 14.0 mln vs 11.8 mln Nine mths Shr 1.83 dlrs vs 1.53 dlrs Net 39.7 mln vs 32.7 mln Assets 4.65 billion vs 4.53 billion Loans 3.24 billion vs 2.92 billion Deposits 3.32 billion vs 3.15 billion  
MARINE CORP <MCOR.O> 3RD QTR NET. Shr 30 cts vs 30 cts Net 1,804,000 vs 1,800,000 Nine mths Shr 89 cts vs 79 cts Net 5,334,00 vs 4,496,000 NOTE: Earnings per share reflect initial public offering of 534,750 common shares in March 1986 and 2-for-1 stock splits in January and June 1986.  
HARMAN INTERNATIONAL <HIII.O> 1ST QTR SEPT 30. Shr 30 cts vs 26 cts Net 2,534,000 vs 1,695,000 Revs 98.8 mln vs 67.1 mln Avg shrs 8,447,000 vs 6,563,000 NOTE: full name of company is harman international industries inc.  
THE BANKING CENTER <TBCX.O> 3RD QTR NET. Shr 25 cts Net 3,081,000 vs 2,063,000 Nine months Shr 86 cts Net 10.5 mln vs 6,966,000 Assets 1.43 billion vs 1.30 billion Deposits 912.5 mln vs 875.8 mln NOTE: Company converted to a stock savings bank on Aug 13, 1986. 1986 results include operations of Realtech Realtors, which was acquired in 1986. 1987 results include operations of Burgdorff Realtors, acquired in December 1986; Cornerstone Mortgage Co, acquired in July 1987; Centerbank Mortgage Co, acquired in July 1987; and Center Capital Corp, formed in August 1987.  
WATTS INDUSTRIES INC <WATTA.O> 1ST QTR SEPT 27. Shr 36 cts vs 27 cts Net 4,538,000 vs 3,160,000 Sales 41.8 mln vs 32.8 mln Avg shrs 12.6 mln vs 11.9 mln  
MONITERM CORP <MTRM.O> 3RD QTR OPER NET. Oper shr profit 13 cts vs nil Oper net profit 612,806 vs profit 2,363 Sales 8,317,933 vs 2,823,243 Nine mths Oper shr profit 32 cts vs loss four cts Oper net profit 1,464,338 vs loss 161,315 Sales 20.3 mln vs 8,241,463 NOTE: 1987 earnings exclude gains from utilization of tax loss carryforwards of 321,980 dlrs, or seven cts a share in the quarter and 772,285 dlrs, or 17 cts a share for the nine months  
ERIE LACKAWANNA INC <ERIE.O> 3RD QTR NET. Shr 1.32 dlrs vs 1.59 dlrs Net 1,217,649 vs 1,471,824 Total income 1,896,018 vs 2,278,642 Nine mths Shr 4.92 dlrs vs 5.38 dlrs Net 4,553,380 vs 4,979,626 Total income 6,918,266 vs 8,134,313  
QUANTUM CORP <QNTM.O> 2ND QTR SEPT 27 NET. Shr 44 cts vs 30 cts Net 4,057,000 vs 2,716,000 Sales 49.5 mln vs 29.6 mln Six Mths Shr six cts vs 55 cts Net 518,000 vs 5,167,000 Sales 89.7 mln vs 54.9 mln  
TERMIFLEX CORP <TFLX.O> 1ST QTR SEPT 30 NET. Shr five cts vs seven cts Net 64,652 vs 96,157 Sales 1,205,321 vs 1,499,591 NOTE: Backlog three mln dlrs vs 2,600,000 as of June 30, 1987.  
TRAVELERS REAL ESTATE <TRAT.O> 3RD QTR NET. Shr 18 cts vs 27 cts Net 444,387 vs 676,593 Revs 549,437 vs 764,901 Nine mths Shr 67 cts vs 81 cts Net 1,690,670 vs 2,031,937 Revs 1,986,938 vs 2,302,278 NOTE: Full name is Travelers Real Estate Investment Trust  
NEW YORK TIMES CO <NYT> 3RD QTR NET. Shr 40 cts vs 33 cts Net 32.6 mln vs 26.7 mln Revs 406.5 mln vs 370.1 mln Nine months Shr 1.44 dlrs vs 1.20 dls Net 117.8 mln vs 97.5 mln Revs 1.2 billion vs 1.1 billion  
SAFEGUARD HEALTH <SFGD.O> 3RD QTR NET. Shr 11 cts vs five cts Net 806,000 vs 384,000 Revs 18.0 mln vs 15.6 mln Nine Mths Shr 28 cts vs 17 cts Net 2,105,000 vs 1,320,000 Revs 51.9 mln vs 46.1 mln Note: Full name Safeguard Health Enterprises Inc.  
MERCURY SAVINGS AND LOAN <MSL> 3RD QTR LOSS. Shr loss 39 cts vs profit 44 cts Net loss 2,169,000 vs profit 2,417,000 Nine Mths Shr profit 56 cts vs profit 1.68 dlrs Net profit 3,111,000 vs profit 9,317,000 Note: Full name Mercury Savings and Loan Association '  
BURNHAM SERVICE CORP <BSCO.O> 3RD QTR NET. Shr 45 cts vs 36 cts Net 2,554,000 vs 1,954,000 Revs 44.4 mln vs 32.5 mln Nine mths Shr 1.00 dlrs vs 75 cts Net 5,461,000 vs 3,756,000 Revs 109.5 mln vs 89.9 mln  
ERC INTERNATIONAL INC <ERC> 3RD QTR NET. Shr 31 cts vs nine cts Net 1,345,000 vs 368,000 Revs 31.9 mln vs 26.4 mln Nine mths Shr 91 cts vs 40 cts Net 3,890,000 vs 3,556,000 Revs 89.3 mln vs 71.7 mln NOTE: 1986 qtr and nine mths include loss 831,000 dlrs, or 19 cts per share, and loss 1,872,000 dlrs, or 44 cts per share, respectively, from discontinued operations.  
PAINEWEBBER GROUP INC <PWG> 3RD QTR NET. Shr 44 cts vs 71 cts Net 14.8 mln vs 21.1 mln Revs 628.6 mln vs 605.6 mln Avg shrs 30,743,000 vs 26,969,000 Nine mths Shr 2.01 dlrs vs 1.93 dlrs Net 65.0 mln vs 57.4 mln Revs 1.89 billion vs 1.81 billion Avg shrs 30,782,000 vs 26,619,000  
<EUROPEAN AMERICAN BANCORP> 3RD QTR NET. Net 13,185,000 vs 6,715,000 Nine mths Net 26.2 mln vs 15.3 mln NOTE: Company is owned by a consortium of European banks.  
KAUFEL GROUP LTD (KFL.TO) 4TH QTR AUG 31 NET. Shr 17 cts vs 13 cts Net 2.1 mln vs 1.03 mln Revs 15.6 mln vs 12 mln Nine mths Shr 58 cts vs 37 cts Net 6.9 mln vs 3.7 mln Revs 56.2 mln vs 27.5 mln Avg shrs 11.9 mln vs 10.0 mln  
FIRST BOSTON INC <FBC> 3RD QTR NET. Shr primary 1.15 dlrs vs 76 cts Shr fully diluted 1.15 dlrs vs 76 cts Net 40.8 mln vs 27.1 mln Revs 369.6 mln vs 263.2 mln Nine mths Shr primary 2.95 dlrs vs 3.44 dlrs Shr fully diluted 2.95 dlrs vs 3.33 dlrs Net 103.8 mln vs 119.0 mln Revs 1.06 billion vs 897.8 mln  
TRAVELERS REALTY INCOME <TRIIS.O> 3RD QTR NET. Shr 22 cts vs 57 cts Net 504,808 vs 1,281,781 Revs 633,119 vs 1,396,703 Nine mths Shr 87 cts vs 1.32 dlrs Net 1,959,385 vs 2,986,379 Revs 2,342,322 vs 3,346,555 NOTE: Full name of trust is Travelers Realty Income Investors  
SOCIETY FOR SAVINGS BANCORP <SOCS.O> 3RD QTR. Shr 75 cts vs 55 cts Net 8,031,000 vs 5,819,000 Nine mths Shr 2.16 dlrs vs 1.42 dlrs Net 23.2 mln vs 15.1 mln Assets 3.41 billion vs 2.84 billion Deposits 2.54 billion vs 2.19 billion NOTE: 1987 nine mths includes gain 1,008,000 dlrs, or nine cts per share, from utilization of prior year's net operating loss carryforwards.  NOTE: 1986 qtr and nine mths include loss 131,000 dlrs, or one cent per share, from unspecified extraordinary item. 1986 qtr and nine mths includes gain 2,281,000 dlrs, or 22 cts per share, and 6,393,000 dlrs, or 60 cts per share, respectively, from utilization of net operating loss carryforwards. full name of company is society for savings bancorp inc.  
PROGRESSIVE BANK INC <PSBK.O> 3RD QTR NET. Shr 88 cts vs 73 cts Net 2,580,000 vs 2,147,000 Nine mths Shr 2.48 dlrs vs 2.33 dlrs Net 7,266,000 vs 5,948,000  
WASHINGTON WATER POWER <WWP> 3RD QTR LOSS. Shr loss 12 cts vs profit two cts Net loss 2,669,000 vs profit 528,000 Revs 79.8 mln vs 74.9 mln Nine mths Shr profit 64 cts vs profit 1.63 dlrs Net profit 14.3 mln vs profit 35.7 mln Revs 280.0 mln vs 288.8 mln  
BELLSOUTH CORP <BLS> 3RD QTR NET. Shr 87 cts vs 84 cts Net 418.6 mln vs 399.2 mln Revs 3.12 billion vs 2.89 billion Nine mths Shr 2.61 dlrs vs 2.62 dlrs Net 1.25 billion vs 1.23 billion Revs 9.10 billion vs 8.62 billion Avg shrs 481.4 mln vs 473.6 mln NOTE: Share adjusted for three-for-two stock split in February 1987.  
RTE CORP <RTE> 3RD QTR NET. Shr profit 55 cts vs loss 12 cts Net profit 3,998,000 vs loss 915,000 Sales 93.8 mln vs 80.9 mln Nine mths Shr profit 1.71 dlrs vs profit 95 cts Net profit 12,641,000 vs profit 7,282,000 Sales 260.9 mln vs 249 mln Note: 1986 figures include a five mln dlr or 65 cts a share charge for electronics restructuring and 1.7 mln dlr charge from early retirement of 12 mln dlrs in long-term notes  
COMERICA INC <CMCA.O> 3RD QTR NET. Shr 2.17 dlrs vs 1.42 dlrs Net 24,907,000 vs 16,117,000 Nine mths Shr 4.05 dlrs vs 3.75 dlrs Net 47,105,000 vs 42,874,000 Assets 9.66 billion vs 9.25 billion Deposits 8.06 billion vs 7.80 billion Loans 842.5 mln vs 711.1 mln  
ST. JOSEPH LIGHT <SAJ> 3RD QTR NET. Shr 84 cts vs 86 cts Net 3,893,000 vs 4,054,000 Revs 21.0 mln vs 21.2 mln Nine Mths Shr 1.88 dlrs vs 1.87 dlrs Net 8,707,000 vs 8,848,000 Revs 57.9 mln vs 59.1 mln NOTE: 1986 per share adjusted for three for two stock split effective June 1, 1987. St. Joseph Light and Power Co is full name of company.  
TRW INC <TRW> 3RD QTR NET. Shr 1.04 dlrs vs 67 cts Shr diluted 1.01 dlrs vs 66 cts Net 63.2 mln vs 40.5 mln Sales 1.70 billion vs 1.43 billion Nine mths Shr 2.91 dlrs vs 2.88 dlrs Shr diluted 2.85 dlrs vs 2.82 dlrs Net 176.5 mln vs 172.7 mln Sales 5.08 billion vs 4.49 billion Avg shrs 60.3 mln vs 59.6 mln Avg shrs diluted 62.0 mln vs 61.3 mln  
<TOTAL RESEARCH CORP> FISCAL 1987 NET. June 30 end Shr 0.3 ct vs four cts Net 18,463 vs 174,486 Revs 5,074,686 vs 4,181,978 Avg shrs 5,624,041 vs 4,860,000  
GENDEX CORP <XRAY.O> 2ND QTR SEPT 30 NET. Shr nine cts vs six cts Net 242,000 vs 135,000 Sales 4,003,000 vs 2,968,000 Six Mths Shr 17 cts vs 14 cts Net 414,000 vs 297,000 Sales 7,54,000 vs 5,912,000 Avg shrs 2.4 mln vs 2.1 mln NOTE: 1986 net includes tax credits equal to one cent in the quarter and two cts in the six months.  
BEN AND JERRY'S HOMEMADE INC <BJIC.O> EIGHT MTHS. Shr 42 cts vs 32 cts Net 1,076,572 vs 826,939 Sales 20.5 mln vs 12.5 mln NOTE: Company released results in connection with filing for Class A common stock offering.  
TALMAN HOME FEDERAL <TLMN.O> 3RD QTR OPER NET. Oper shr 17 cts vs not available Oper net 1,619,000 vs 6,354,000 Nine Mths Oper shr 80 cts vs not available Oper net 7,675,000 vs 22,669,000 Assets 6.06 billion vs 5.74 billion Loans 3.11 billion vs 3.33 billion Deposits 4.57 billion vs 4.83 billion  NOTE: 1987 operating net excludes tax credits of 3.9 mln dlrs or 40 cts a share in the quarter and 8.1 mln dlrs or 85 cts in the nine months period. 1986 nine months operating net excludes prepayment penalties on early retirement of loans of 736,000 dlrs. Talman Home Federal Savings and Loan Association, Chicago is full name of company.  
NORTHEAST SAVINGS F.A. <NSB> 2ND QTR NET LOSS. Shr loss 1.39 dlrs vs profit 1.20 dlrs Net loss 5,306,000 vs profit 7,246,000 Six mths Shr loss 18 cts profit 2.23 dlrs Net profit 3,259,000 vs profit 14.2 mln Assets 6.79 billion vs 5.42 billion Deposits 3.99 billion vs 3.38 billion Loans 4.92 billion vs 4.53 billion NOTE: 1987 six mths per share includes preferred stock dividend payments.  
MARINE CORP <MCOR.O> 3RD QTR NET. Shr 30 cts vs 30 cts Net 1,804,000 vs 1,800,000 Nine mths Shr 89 cts vs 79 cts Net 5,334,000 vs 4,496,000  
PIONEER-STANDARD ELECTRONICS INC <PIOS.O>2ND QTR. Periods ended September 30 Oper shr 24 cts vs six cts Oper net 1,297,881 vs 312,295 Sales 60.5 mln vs 52.2 mln First half Oper shr 39 cts vs 13 cts Oper net 2,099,679 vs 711,530 Sales 118.1 mln vs 103.7 mln NOTE: 1986 operating net excludes losses from discontinued operations of 154,661 dlrs, or three cts a share, in quarter and 409,476 dlrs, or seven cts a share, in half.  
CITIZENS FINANCIAL GROUP INC <CITN.O> 3RD QTR. Shr 43 cts vs 55 cts Net 6,262,000 vs 7,948,000 Nine mths Shr 1.30 dlrs vs 1.54 dlrs Net 18.8 mln vs 22.3 mln Assets 2.4 billion vs 2.1 billion NOTE: Prior year amounts restated to reflect 2-for-1 stock split effective May 15, 1987.  
IRWIN MAGNETIC SYSTEMS INC <IRWN> 1ST QTR NET. Period ended Sept 27 Shr nine cts vs 24 cts Net 474,000 vs 880,000 Sales 11.2 mln vs 11.8 mln Avg shrs 5,369,555 vs 3,654,986 Note: 1986 figures include tax credits of 113,000 dlrs or three cts a share.  
BENCH CRAFT INC <SOFA.O> 3RD QTR NET. Shr 23 cts vs 22 cts Net 1,293,000 vs 1,256,000 Sales 39.7 mln vs 31.6 mln Nine mths Shr 72 cts vs 61 cts Net 4,099,000 vs 3,470,000 Sales 115.9 mln vs 87.6 mln NOTE: Share adjusted for three-for-two stock split in February 1987.  
CITYFED FINANCIAL CORP <CTYF.O> 3RD QTR LOSS. Shr primary loss eight cts vs profit 49 cts Shr fully diluted loss eight cts vs profit 45 cts Net profit 681,000 vs profit 11.5 mln Nine mths Shr primary profit 33 cts vs profit 2.36 dlrs Shr fully diluted profit 33 cts vs profit 1.92 dlrs Net profit 12.7 mln vs profit 47.5 mln Assets 10.53 billion vs 10.75 billion Deposits 5.98 billion vs 5.89 billion Loans 8.44 billion vs 9.09 billion NOTE: 1987 nine mth figures include gain of 2,470,000 dlrs from cumulative effect of an accounting change. 1987 3rd qtr and nine mth figures also include gain of 12.1 mln dlrs from sale of real estate investment property. 1987 3rd qtr and nine mths earnings per share reflect payment of dividends on company's two series of preferred stock amounting to 2.2 mln dlrs.  
CATERPILLAR INC <CAT> 3RD QTR NET. Shr profit 1.47 dlrs vs loss 26 cts Net profit 146 mln vs loss 26 mln Revs 2.25 billion vs 1.82 billion Nine mths Shr profit 1.82 dlrs vs profit 2.27 dlrs Net profit 180 mln vs profit 224 mln Revs 5.94 billion vs 5.55 billion  
DENSE-PAC MICROSYSTEMS INC <DPAC.O> 2ND QTR. Period ended August 29. Shr profit one ct vs loss one ct Net profit 128,112 vs loss 30,170 Sales 1,620,707 vs 1,325,406 Avg shrs 9,306,031 vs 3,499,219 Six Mths Shr nil vs loss nine cts Net profit 25,890 vs loss 322,675 Sales 2,915,077 vs 1,845,003 Avg shrs 9,283,631 vs 3,499,219  
NEWHALL INVESTMENT PROPERTIES <NIP> 3RD QTR. Shr 1.13 dlrs vs 87 cts Net 5,010,000 vs 3,868,000 Nine mths Shr 4.91 dlrs vs 4.84 dlrs Net 21.8 mln vs 21.5 mln NOTE: Current quarter figures include gain of 4.7 mln dlrs on property sales vs gain of 2.9 mln in prior year's quarter. Current nine month figures include gain of 20.5 mln dlrs on property sales vs gain of 19 mln dlrs.  
ASPEN RIBBONS INC <ARIB.O> 1ST QTR NET. Sept 30 Shr seven cts vs five cts Net 234,504 vs 157,862 Revs 4,096,000 vs 3,007,383  
LSI LIGHTING SYSTEMS INC <LYTS.O> 1ST QTR NET. Qtr ends September 30 Shr 25 cts vs 13 cts Net 759,000 vs 383,000 Revs 9,052,000 vs 6,829,000  
ROTO-ROOTER INC <ROTO.O> 3RD QTR NET. Shr 23 cts vs 20 cts Net 1,115,000 vs 971,000 Revs 13.8 mln vs 11.9 mln Nine mths Shr 64 cts vs 52 cts Net 3,134,000 vs 2,521,000 Revs 40.1 mln vs 31.8 mln  
CITY SAVINGS BANK OF MERIDEN <CSBM.O> 3RD QTR. Shr 34 cts vs not given Net 510,192 vs 328,428 Nine mths Shr one dlr vs not given Net 1,489,831 vs 741,136 NOTE: Company went public in September 1986.  
HOME FEDERAL SAVINGS BANK OF GEORGIA <HFGA.O>. 3rd qtr net Shr 22 cts vs 54 cts Net 366,497 vs 877,148 Nine mths Shr 70 cts vs 1.17 dlrs Net 1,185,352 vs 1,924,255  
INTERNATIONAL TELECHARGE INC <ITIL.O> 3RD QTR. Shr loss five cts vs loss eight cts Net loss 657,000 vs loss 566,535 Revs 9,341,755 vs 260,468 Avg shrs 14,323,384 vs 7,081,688 Nine mths Shr loss 19 cts vs loss 39 cts Net loss 2,449,094 vs loss 1,408,789 Revs 15,571,230 vs 683,684 Avg shrs 12,655,172 vs 3,612,300  
SPECTRAMED INC <SPMD.O> 3RD QTR NET. Shr profit seven cts vs n/a Net profit 587,000 vs profit 3,231,000 Sales 18.5 mln vs 18.7 mln Nine Mths Shr loss 39 ct s vs n/a Net loss 2,368,000 vs protit 7,165,000 Sales 55.4 mln vs 54.2 mln Note: Current nine month figures include extraordinary loss of 1.2 mln dlrs, or 17 cts per share, resulting from costs associated with restructuring. Prior quarter and nine month per share figures not applicable because company began operations in October, 1986 with the acquisition of Gould Inc's <GLD> medical products group.  
M/A/R/C INC <MARC.O> 2ND QTR SEPT 30 NET. Shr 21 cts vs 11 cts Net 661,000 vs 325,000 Revs 13.6 mln vs 13.4 mln Avg shrs 3,148,000 vs 3,011,000 1st half Shr 42 cts vs 25 cts Newt 1,310,000 vs 752,000 Revs 28.2 mln vs 25.6 mln Avg shrs 3,136,000 vs 3,006,000  
CHAMBERS DEVELOPMENT CO INC <CDV> 3RD QTR NET. Shr 23 cts vs 15 cts Net 2,641,000 vs 1,295,000 Revs 15.6 mln vs 7,925,000 Avg shrs 11.6 mln vs 8,900,000 Nine mths Shr 65 cts vs 37 cts Net 6,805,000 vs 3,308,000 Revs 42.7 mln vs 20.6 mln Avg shrs 10.5 mln vs 8,900,000  
VOPLEX CORP <VOT> 3RD QTR LOSS. Shr loss 24 cts vs loss 13 cts Net loss 619,956 vs loss 340,735 Revs 17.2 mln vs 18.2 mln Nine mths Shr profit six cts vs loss 92 cts Net profit 172,384 vs loss 2,437,333 Revs 57.7 mln vs 57.5 mln  
UNITED SAVINGS AND LOAN <UNSA.O> 2ND QTR NET. Sept 30 Shr 44 cts Net 905,000 vs 631,000 Six months Shr 88 cts Net 1,793,000 vs 1,378,000 Assets 221 mln vs 223.2 mln Deposits 186.4 mln vs 189.8 mln Loans 176.5 mln vs.7 mln  
TONS OF TOYS INC <TONS.O> 1ST QTR AUG 31 LOSS. Shr loss five cts vs loss eight cts Net loss 118,000 vs loss 87,000 Sales 1,765,000 vs 1,345,000 Avg shrs 2,370,000 vs 1,070,000  
ANCHOR FINANCIAL CORP <AFCX.O> 3RD QTR NET. Shr 28 cts vs 41 cts Net 205,000 vs 229,000 Nine mths Shr 86 cts vs 1.01 dlrs Net 622,000 vs 566,000 NOTE: Share reflects issuance of 166,750 common shares in December 1986.  
PHOTRONICS CORP <PHOT.O> 1ST HALF AUG 31 NET. Shr 38 cts vs 25 cts Net 708,197 vs 404,471 Sales 6,592,736 vs 6,122,133 Avg shrs 1,886,400 vs 1,648,477  
HOMETOWN BANCORP INC <HTWN.O> 3RD QTR NET. Shr profit five cts vs profit seven cts Net profit 59,000 vs profit 39,000 Nine mths Shr profit 12 cts vs loss four cts Net profit 92,000 vs loss 20,000 Avg shrs 775,000 vs 548,000  
FIDELITY FEDERAL SAVINGS AND LOAN <FFED.O> 3RD. Shr 42 cts vs 59 cts Net 734,659 vs 1,033,309 Nine mths Shr 92 cts vs 1.69 dlrs Net 1,629,719 vs 2,971,144 NOTE: 1987 nine mths net includes a loss of 290,000 dlrs on sale of securities and nine-recurring charge of 32,713 dlrs for write-off of FSLIC secondary reserve.  
HORIZON BANCORP <HZB> 3RD QTR NET. Shr 1.33 dlrs vs 90 cts Net 12.0 mln vs 8,180,000 Nine mths Shr 3.63 dlrs vs 2.88 dlrs Net 32.9 mln vs 26.2 mln  
19-OCT-1987. 19-OCT-1987 
<ACC CORP> 3RD QTR NET. Shr profit three cts vs profit nine cts Net profit 102,136 vs profit 307,516 Revs 8,459,182 vs 8,469,476 Avg shrs 3,448,218 vs 3,613,672 Nine mths Shr loss 13 cts vs profit 28 cts Net loss 458,823 vs profit 1,014,969 Revs 25.5 mln vs 24.6 mln Avg shrs 3,467,099 vs 3,612,626  
FIRST UNION REAL ESTATE INVESTMENTS <FUR> NET. 3rd qtr Oper shr 27 cts vs 29 cts Oper net 4,926,000 vs 5,231,000 Revs 18.5 mln vs 17.8 ln Nine mths Oper shr 78 cts vs 84 cts Oper net 14.1 mln vs 15.3 mln Revs 55.0 mln vs 53.6 mln NOTE: Net excludes capital gains of 751,000 dlrs vs 664,000 dlrs in quarter and 5,881,000 dlrs vs 3,409,000 dlrs in nine mths.  
FEDERAL-MOGUL CORP <FMO> 3RD QTR NET. Shr 66 cts vs 48 cts Net 8,413,000 vs 6,112,000 Sales 267.9 mln vs 230.6 mln Nine mths Shr 2.20 dlrs vs 2.05 dlrs Net 28.1 mln 26.4 mln Sales 806.7 mln vs 720.7 mln NOTE: 1986 3rd qtr results include extraordinary loss on extinguishment of debt of 1,482,000 dlrs or 12 cts a shr.  
USACAFES LP <USF> 3RD QTR NET. Shr 33 cts vs 13 cts Net 2,272,000 vs 880,000 Revs 6,399,000 vs 5,912,000 Chainwide sales 142.0 mln vs 126.7 mln Nine mths Shr 1.07 dlrs vs 44 cts Net 7,369,000 vs 2,868,000 Revs 19.1 mln vs 16.1 mln Chainwide sales 402.9 mln vs 357.1 mln Avg shrs 6,918,000 vs 6,569,000  
ACME ELECTRIC CORP <ACE> 1ST QTR OCT TWO. Shr 17 cts vs four cts Qtly div eight cts vs eight cts Net 739,000 vs 157,000 Revs 21.1 mln vs 14.5 mln NOTE: 1986 1st qtr adjusted for five pct stock dividend pain in March 1987. Qtly dividend payable December seven to shareholders or record November nine.  
NBI INC <NBI> 1ST QTR LOSS. Sept 30 end Shr loss 38 cts vs loss three cts Net loss 3,300,000 vs loss 205,000 Revs 63.4 mln vs 72.1 mln Avg shrs 8,966,000 vs 9,741,000 NOTE: 1986 first quarter results include 398,000 gain from repurchase of debentures that had been discounted below market value.  
AVX CORP <AVX> 3RD QTR OCT THREE NET. Shr profit 30 cts vs profit three cts Net profit 3,933,000 vs profit 436,000 Revs 70.4 mln vs 47.2 mln Avg 13.2 mln vs 13.0 mln Nine mths Shr profit 85 cts vs loss 17 cts Net profit 11.2 mln vs loss 2,083,000 Revs 192.1 mln vs 144.8 mln Avg shrs 13.2 mln vs 12.0 mln  
STRATUS COMPUTER INC <STRA.O> 3RD QTR NET. Shr 26 cts vs 18 cts Net 5,281,000 vs 3,496,000 Revs 48.8 mln vs 32.1 mln Nine mths Shr 64 cts vs 51 cts Net 12.9 mln vs 9,822,000 Revs 129.0 mln vs 89.2 mln  
MYERS INDUSTRIES INC <MYE> 3RD QTR NET. Shr 26 cts vs 18 cts Net 1,409,551 vs 985,470 Revs 38.4 mln vs 22.5 mln Nine mths Shr 64 cts vs 47 cts Net 3,477,188 vs 2,558,625 Revs 88.8 mln vs 63.9 mln NOTE: Earnings per share adjusted for 3-for-2 stock split distributed on September 4.  
VICTORIA BANCKSHARES INC <VICT.O> 3RD QTR NET. Shr profit two cts vs loss 2.60 dlrs Net profit 111,000 vs loss 16.9 mln Nine mths Shr profit 19 cts vs loss 2.80 dlrs Net profit 1,261,000 vs loss 18.1 mln  
INTERSTATE SECURITIES INC <IS> 4TH QTR SEPT 30. Shr 11 cts vs 22 cts Qtly div 10 cts vs 10 cts prior Net 548,254 vs 1,138,978 Revs 28 mln vs 31.1 mln Year Shr 50 cts vs 1.34 dlrs Net 2,527,846 vs 6,822,293 Revs 111.7 mln vs 118.9 mln NOTE: Qtly div payable December 4 to shareholders of record November 13.  
PANCHO'S MEXICAN BUFFET INC <PAMX.O> 4TH QTR NET. Sept 30 end Shr 14 cts vs 20 cts Net 733,980 vcs 871,720 Revs 14.7 mln vs 12.0 mln Avg shrs 5,130,190 vs 4,302,430 Year Shr 61 cts vs 60 cts Net 2,763,308 vs 2,550,133 Revs 50.0 mln vs 43.1 mln Avg shrs 4,565,189 vs 4,277,046 Fiscal 1987 net both periods includes charge 480,000 dlrs to adjust premium reserves for workers' compensation and liability insurance claims.  
FRANKLIN ELECTRIC CO INC <FELE.O> 3RD QTR NET. Shr 85 cts vs 73 cts Net 3,150,000 vs 2,699,000 Sales 39.8 mln vs 34.3 mln Nine Mths Shr 2.19 dlrs vs 1.86 dlrs Net 8,109,000 vs 6,876,000 Sales 111.5 mln vs 100.7 mln NOTE: 1987 tax credits added 14 cts to third quarter net and 33 cts to nine months net compared with credits of 16 cts and 45 cts in the respective 1986 periods.  
ALTUS BANK <ALTS.O> 3RD QTR NET. Oper shr three cts vs 48 cts Oper net 170,000 vs 2,324,000 Nine mths Oper shr 1.26 dlrs vs 1.84 dlrs Oper net 6,157,000 vs 8,907,000 NOTE: Operating net excludes extraordinary gains of 231,000 dlrs, or four cts a share, vs 2,657,000 dlrs, or 55 cts a share, in quarter and 1,341,000 dlrs, or 28 cts a share, vs 4,637,000 dlrs, or 95 cts a share, in the nine months  
KENNAMETAL INC <KMT> 1ST QTR SEPT 30 NET. Shr 48 cts vs 35 cts Net 4,946,000 vs 3,552,000 Sales 94.1 mln vs 84.5 mln Avg shrs 10.2 mln vs 10.1 mln  
COMPUTER CONSOLES INC <CCS> 3RD QTR NET. Oper shr profit four cts vs profit 13 cts Oper net profit 456,000 vs profit 1,633,000 Revs 37.8 mln vs 34.0 mln Avg shrs 13.0 mln vs 13.0 mln Nine mths Oper shr profit 12 cts vs loss 39 cts Oper net profit 1,614,000 vs loss 4,877,000 Revs 109.2 mln vs 88.3 mln Avg shrs 13.1 mln vs 12.5 mln NOTE: 1987 net excludes tax credits of 156,000 dlrs in quarter and 716,000 dlrs in nine mths. 1987 net both perioods includes charge one mln dlrs from restructuring of Computer Products Division.  
OMNICARE INC <OCR> 3RD QTR NET. Shr profit five cts vs loss one ct Net profit 504,000 vs loss 102,000 Revs 31.4 mln vs 32.0 mln Nine mths Shr profit 17 cts vs profit 26 cts Net profit 1,729,000 vs profit 2,596,000 Revs 92.7 mln vs 112.6 mln NOTE: 1986 3rd qtr net includes a after-tax charge of 555,000 dlrs for sale of Reliacare Inc.  1986 nine mths net includes charge of 1,253,000 dlrs or 12 cts a share for sale of Reliacare and Inspiron Hospital Products division. 1986 nine mths net also includes aftertax earnings of 2,256,000 dlrs or 22 dlrs a share for American Medical International Inc <AMI> contracts which expired July 1986.  
DIME SAVINGS BANK N.Y. <DIME.O> 3RD QTR NET. Shr 1.22 dlrs Net 27.8 mln vs 28.6 mln Nine mths Shr 3.88 dlrs Net 87.4 mln vs 98.7 mln Assets 10.3 billion vs 8.4 billion Deposits 7.4 billion vs 6.7 billion Loans 7.9 billion vs 6.0 billion NOTE: Full name is Dime Savings Bank of New York. 1986 per share figures not available as bank converted to stock form in August 1986. 1987 qtr and nine mths includes gain 10.5 mln dlrs and 33.2 mln dlrs, respectively, from utilization of net operating loss carryforwards. 1986 qtr and nine mths includes gain 10.4 mln dlrs and 32.9 mln dlrs, respectively, from utilization of net operating loss carryforwards. 1987 qtr and nine mths also includes charge of 835,000 dlrs for the early extinguishment of debt net of tax benefit.  
PICCADILLY CAFETERIAS INC <PICC.O> 1ST QTR NET. Sept 30 end Shr 32 cts vs 32 cts Net 2,990,000 vs 2,988,000 Sales 57.3 mln vs 54.6 mln  
FIRST MICHIGAN BANCORP <FMBC.O> 3RD QTR NET. Shr 55 cts vs 48 cts Net 2,520,000 vs 2,211,000 Nine mths Shr 1.57 dlrs vs 1.41 dlrs Net 7,223,000 vs 6,475,000  
COUNTRYWIDE TRANSPORT <CWTS.O> 3RD QTR NET. Shr 19 cts vs 15 cts Net 826,362 vs 421,759 Revs 19.0 mln vs 14.8 mln Avg shrs 4,400,000 vs 2,900,000 Nine Mths Shr 48 cts vs 31 cts Net 1,872,075 vs 887,478 Revs 51.6 mln  41.1 mln Avg shrs 3,889,000 vs 2,900,000 Note: Full name Countrywide Transport Services Inc.  
SOFTWARE SERVICES OF AMERICA INC <SSOA.O> NET. Shr four cts vs five cts Net 85,292 vs 109,285 Revs 2,916,128 vs 474,819  
KEYCORP <KEY> 3RD QTR NET. Shr 85 cts vs 77 cts Net 25.8 mln vs 21.9 mln Avg shrs 29.0 mln vs 27.1 mln Nine mths Shr 2.22 dlrs vs 2.14 dlrs Net 67.9 mln vs 60.1 mln Avg shrs 29.0 mln vs 26.5 mln NOTE: Previously reoprted amounts restated for earnings of First NorthWest Bancorp acquired in pooling of interests on July 31, 1987.  
ALLIED-SIGNAL INC <ALD> 3RD QTR OPER NET. Oper shr 1.02 dlrs vs 82 cts Oper net 174 mln vs 149 mln Revs 2.7 billion vs 2.4 billion Nine mths Oper shr 2.54 dlrs vs 2.64 dlrs Oper net 438 mln vs 492 mln Revs 8.2 billion vs 7.4 billion NOTE: 1987 3rd qtr and nine mths includes after-tax 82 mln dlr or 49 cts a share gain for increase in equity of Union Texas Petroleum Holdings Inc, for initial public offering.  1987 nine mths net includes after-tax gain of 73 mln dlrs or 42 cts a share on sale of remaining interest in the Henley Group Inc and other related transactions, which was partly offset by an after-tax loss of 30 mln dlrs ot 17 cts a share for repurchase of high coupon bonds. 1987 nine mths also excludes 79 mln dlrs for estimated net gain on disposal of discontinued operations as of March 31, 1987, including Linotype Group, Amphenol Products, Ampex Corp. 1986 amounts restated to exclude sales and expenses of discontinued operations.  1986 3rd qtr and nine mths oper net excludes operating income of 15 mln dlrs and and 44 mln dlrs for discontinued operations. 1986 nine mths includes a 43 mln dlrs or 24 cts a share after tax gain for reversion of surplus pension funds. At end of 1987 and 1986 third quarter, average shares outstanding were 169.9 mln and 175.4 mln outstanding, after deducting dividends accured on preferred stock. At end of 1987 and 1986 nine mth period, average shares were 172.5 mln and 175.9, respectively, after deducting for preferred stock dividends.  
BURR-BROWN CORP <BBRC.O> 3RD QTR NET. Shr 16 cts vs 13 cts Net 1,538,000 vs 1,288,000 Sales 35.3 mln vs 29.5 mln Nine Mths Shr 27 cts vs 37 cts Net 2,601,000 vs 3,586,000 Sales 102.0 mln vs 84.2 mln  
TEMPLE-INLAND INC <TIN> 3RD QTR NET. Shr 1.24 dlrs vs 66 dlrs Net 38.2 mln vs 20.1 mln Revs 419.1 mln vs 333.8 mln Nine mths Shr 3.50 dlrs vs 1.74 dlrs Net 107.7 mln vs 53 mln Revs 1.2 billion vs 940 mln  
UNIVERSAL FURNITURE LTD <UFURF.O> 3RD QTR NET. Shr 34 cts vs 26 cts Net 6,150,000 vs 4,743,000 Revs 61.4 mln vs 49.5 mln Nine months Shr 89 cts vs 70 cts Net 16 mln vs 11.8 mln Revs 170 mln vs 137.5 mln NOTE: All share and per share data have been adjusted to reflect 100 pct stock dividend distrition on April 24, 1987 and the public offier of two mln shares ofthe company on June 4, 1986.  
A. SCHULMAN INC <SHLM.O> 4TH QTR AUG 31 NET. Shr 63 cts vs 49 cts Net 5,635,000 vs 4,330,000 Sales 117.8 mln vs 96.2 mln Year Shr 2.21 dlrs vs 1.71 dlrs Net 19.8 mln vs 15.2 mln Sales 465.1 mln vs 388.5 mln NOTE: Share adjusted for February 1987 three-for-two split. Prior year results restated.  
BEARINGS INC <BER> 1ST QTR NET. Sept 30 end Primary 76 cts vs 51 cts Diluted shr 70 cts vs 49 cts Net 2,802,000 vs 2,030,000 Revs 124.9 mln vs 117.2 mln Primary avg shrs 3,687,000 vs 4,016,000 Diluted avg shrs 4,786,000 vs 5,101,000  
CHEMICAL WASTE MANAGEMENT INC<CHW> 3RD QTR NET. Shr 24 cts vs 15 cts Net 24,057,000 vs 14,508,000 Revs 156.1 mln vs 111.2 mln Nine mths Shr 63 cts vs 40 cts Net 63,183,000 vs 36,464,000 Revs 405.0 mln vs 295.8 mln  
AIR PRODUCTS AND CHEMICALS INC <APD> 4TH QTR NET. Oper shr 70 cts vs 18 cts Oper net 39.1 mln vs 10.0 mln Sales 543.6 mln vs 489.6 mln Year Oper shr 2.83 dlrs vs 1.82 dlrs Oper net 159.7 mln vs 106.9 mln Sales 2.13 billion vs 1.94 billion Avg shrs 56.4 mln vs 58.6 mln NOTE: Results restated for discontinued engineering services operations. Prior year net excludes losses from discontinued operations of 143,000 dlrs in quarter and 102,156 dlrs in year. Fiscal 1987 year net excludes 4,081,000 dlr charge from early debt retirement. Fiscal 1986 net includes special charges 24.7 mln dlrs in quarter and 37.2 mln dlrs in year from worgroce reduction costs, revaluation of South African investment, reversal of investment tax credits and othe4r items.  
UNION NATIONAL CORP <UNBC.O> 3RD QTR NET. Shr 80 cts vs 70 cts Shr diluted 76 cts vs 67 cts Qtly div 33 cts vs 33 cts prior Net 7,879,000 vs 7,007,000 Nine mths Shr 2.33 dlrs vs 2.01 dlrs Shr diluted 2.22 dlrs vs 1.92 dlrs Net 23.0 mln vs 20.0 mln Avg shrs 9,890,148 vs 10.0 mln NOTE: Dividend pay Dec 10, record Nov 20.  
AMCAST INDUSTRIAL CORP <ACST.O> 4TH QTR LOSS. Aug 31 Shr loss 34 cts vs profit 39 cts Net loss 2,337,000 vs profit 2,532,000 Revs 66.1 mln vs 58.5 mln Avg shrs 7,166,000 vs 6,763,000 12 months Shr profit 26 cts vs loss 1.20 dlrs Net profit 1,815,000 vs loss 7,927,000 Revs 264.3 mln vs 229.7 mln Avg shrs 7,005,000 vs 6,621,000 NOTE: Results include pretax restructuring provisions of 4.2 mln dlrs and 22.5 mln dlrs for 1987 and 1986, respectively.  
DATACOPY CORP <DCPY.O> 3RD QTR NET. Shr profit three cts vs profit one ct Net profit 129,082 vs profit 36,099 Revs 3,864,187 vs 1,875,919 Nine Mths Shr loss six cts vs profit two cts Net loss 303,581 vs profit 110,311 Revs 9,517,242 vs 5,248,105 NOTE: Prior qtr and nine mth figures include extraordinarycredits of 15,000 dlrs and 48,000 dlrs, respectively.  
AMERICAN REPUBLIC BANCORP <ARBC.O> 3RD QTR NET. Shr profit 32 cts vs profit nine cts Net profit 413,000 vs profit 63,000 Avg shrs 1,278,360 vs 728,476 Nine Mths Shr profit 68 cts vs loss 57 cts Net profit 708,000 vs loss 415,000 Avg shrs 1,041,697 vs 728,476  
FIRSTIER FINANCIAL INC <FRST.O> 3RD QTR NET. Shr 1.05 dlrs vs 74 cts Net 5,244,000 vs 3,684,000 Nine Mths Shr 2.93 dlrs vs 2.14 dlrs Net 14.6 mln vs 10.6 mln  
SOUTHWEST BANCORP <SWB> 3RD QTR LOSS. Shr loss primary 82 cts vs profit 15 cts Shr loss diluted 82 cts vs 13 cts Net loss 4,134,000 vs profit 649,000 Avg shrs 5,030,000 vs 3,927,000 Nine Mths Shr loss primary 80 cts vs profit 37 cts Shr loss diluted 80 cts vs 32 cts Net loss 3,615,000 vs profit 1,652,000 Avg shrs 4,557,000 vs 3,927,000 Loans 231.2 mln vs 221.5 mln Deposits 323.3 mln vs 281.9 mln Assets 368.3 mln vs 346.5 mln Note: Prior qtr and nine mth figures include operating loss carryforward gains of 105,000 dlrs, or two cts per share and 195,000 dlrs, or four cts per share, respectively.  
MARTIN MARIETTA <ML> 3RD QTR NET. Shr 1.02 dlrs vs 96 cts Net 55.6 mln vs 53.2 mln Revs 1.3 billion vs 1.2 billion Nine mths Shr 3.13 dlrs vs 2.88 dlrs Net 171.3 mln vs 159.0 mln Revs 3.8 billion vs 3.5 billion NOTE: 1987 3rd qtr and nine mths includes one time after-tax charge of 14.3 mln dlrs or 26 cts a share for previously announced anticipated sale in the fourth quarter of an investment in Equatorial Communications Co. 1986 amounts restated, increasing net by four cts a share, for change in pension expense accounting. Backlog on September 30, 1987 was 9.3 billion dlrs, which company said was a record.  
NEIMAN-MARCUS GROUP INC <NMG> 2ND QTR AUG 2 LOSS. Shr not given Net loss 69.0 mln vs profit 3,682,000 Revs 258.3 mln vs 229.6 mln Six mths Shr loss 58.8 mln vs profit 13.3 mln Revs 517.9 mln vs 466.5 mln NOTE: Company recently spun off from Carter Hawley Hale Stores Inc <CHH>. Current year net both periods includes 40.8 mln dlrs in pretax charges from Carter Hawley Hale restructuring.  
DELUXE CHECK PRINTERS INC <DLX> 3RD QTR NET. Shr 50 cts vs 35 cts Net 42.7 mln vs 29.9 mln Revs 236.5 mln vs 218.2 mln Nine mths Shr 1.24 dlrs vs 1.02 dlrs Net 105.8 mln vs 86.9 mln Revs 702.5 mln vs 642.5 mln NOTE: 1987 nine-month earnings include nonrecurring gain of nine cents a share from sale of the company's Data Card investment.  
HOME SAVINGS BANK OF BROOKLYN <HMSB.O> 3RD QTR. Shr 57 cts vs not given Net 6,889,000 vs 10.7 mln Nine mths Shr 1.67 dlrs vs not given Net 20.1 mln vs 23.0 mln NOTE: Company went public in November 1986. 1986 net both periods includes 5,642,000 dlr pretax gain on sale of branches. Net includes securities and loan sales loss 90,000 dlrs pretax vs gain 46,000 dlrs in quarter and gains 1,213,000 dlrs vs 2,605,000 dlrs in nine mths and loan losxs provisions 125,000 dlrs vs 30,000 dlrs in quarter and 275,000 dlrs vs 90,000 dlrs in nine mths.  
MCI COMMUNICATIONS CORP <MCIC.O> 3RD QTR NET. Shr eight cts vs six cts Net 22 mln vs 18 mln Revs 994 mln vs 910 mln Nine mths Shr 19 cts vs 20 cts Net 55 mln vs 54 mln Revs 2.9 billion vs 2.7 billion NOTE: 1987 3rd qtr and nine mths include pre-tax gains of from antitrust settlement of 2,000,000 dlrs and 6,000,000 dlrs respectively. 3rd qtr 1986 includes pre-tax gain of 65 mln dlrs from sale of MCI Airsignal subsidiary, and after-tax extraordinary loss of 17 mln dlrs from early redemption of 9-1/2 pct subordinated notes.  
STERLING DRUG INC <STY> 3RD QTR NET. Shr 1.03 dlrs vs 88 cts Net 59.5 mln vs 51.9 mln Revs 641.7 mln vs 557.8 mln Avg shrs 57.4 mln vs 59.0 mln Nine mths Shr 2.51 dlrs vs 2.14 dlrs Net 145.2 mln vs 126.4 mln Revs 1.71 billion vs 1.47 billion Avg shrs 57.8 mln vs 59.0 mln  NOTE: 1986 figures restated to reflected change in accounting methods related to pension expenses.  
FPL GROUP INC <FPL> 3RD QTR NET. Shr 1.16 dlrs vs 1.19 dlrs Net 151.4 mln vs 152.4 mln Revs 1.31 billion vs 1.17 billion Avg shrs 130.0 mln vs 127.6 mln 12 mths Shr 3.03 dlrs vs 2.85 dlrs Net 392.7 mln vs 353.0 mln Revs 4.32 billion vs 4.14 billion Avg shrs 129.8 mln vs 123.9 mln  
AT AND T <T> 3RD QTR NET. Shr 47 cts vs 48 cts Net 505.0 mln vs 533.0 mln Revs 8.47 billion vs 8.43 billion Nine mths. Shr 1.42 dlrs vs 1.16 dlrs Net 1.55 billion vs 1.31 billlion Revs 25.0 billion vs 25.56 billion NOTE: Full name is American Telephone and Telegraph Co. NOTE: Prior quarter and nine mth net reduced by 25 mln dlrs, or two cts per share, for estimated costs to reduce workforce and consolidate various facilities. Prior qtr and nine mths include pretax gain of 73 mln dlrs from damages paid by Republic of Iran and pretax gain of 40 mln dlrs from change in company's ownership in ING C. Olivetti SpA. After tax these gains added 68 mln dlrs, or six cts per shr, to net income. Prior qtr and nine mth results were previously restated to reflect a change in depreciation methods that reduced net income by 175 mln dlrs, or 16 cts per share.  
GORDON JEWELRY CORP <GOR> 4TH QTR AUG 31 LOSS. Shr loss 13 cts vs loss 20 cts Net loss 1,343,266 vs loss 2,086,086 Revs 82.3 mln vs 80.3 mln Year Shr loss 1.83 dlrs vs profit 1.24 dlrs Net loss 19.2 mln vs profit 13.4 mln Revs 388.1 mln vs 370.3 mln NOTE: 1987 year includes charge 15.0 mln dlrs pre-tax for inventory valuation allowance. 1987 year also includes charge 12.8 mln dlrs from discontinued operations.  
STANDARD PRODUCTS CO <SPD> 1ST QTR SEPT 30 NET. Shr 40 cts vs 54 cts Net 4,442,000 vs 6,375,000 Sales 102.8 mln vs 102.5 mln Avg shrs 11.1 mln vs 11.6 mln NOTE: Share adjusted for August 1987 five-for-four split.  
BANKEAST CORP <BENH.O> 3RD QTR NET. Shr 17 cts vs 37 cts Net 1,783,000 vs 4,028,000 Nine mths Shr 52 cts vs 1.03 dlrs Net 5,587,000 vs 11.1 mln  
DALLAS CORP <DLS> 3RD QTR NET. Shr 30 cts vs 12 cts Net 2,191,000 vs 852,000 Sales 106.6 mln vs 102.9 mln Nine mths Shr 44 cts vs 40 cts Net 3,236,000 vs 2,919,000 Sales 297.9 mln vs 297.9 mln  
ANCHOR GLASS CONTAINER CORP <ANC> 3RD QTR NET. Shr 34 cts vs 62 cts Net 4,717,000 vs 8,277,000 Revs 213.4 mln vs 158.7 mln Nine mths Oper shr 1.18 dlrs vs 1.54 dlrs Oper net 16.2 mln vs 17.8 mln Revs 517.2 mln vs 451.4 mln Avg shrs 13.7 mln vs 11.6 mln NOTE: 1986 nine mths net exclude204,000 dlr gain from reversion of pension assets. 1987 net both periods includes pretax charge 692,000 dlrs from amortization of goodwill.  
MIDDLE SOUTH UTILITIES INC <MSU> 3RD QTR NET. Shr 90 cts vs 84 cts Net 185.5 mln vs 171.5 mln Revs 1.08 billion vs 1.07 billion Nine mths Shr 1.85 dlrs vs 1.90 dlrs Net 378.9 mln vs 389.5 mln Revs 2.67 billion vs 2.69 billion 12 mths Shr 2.15 dlrs vs 1.87 dlrs Net 440.7 mln vs 382.0 mln Revs 3.47 billion vs 3.47 billion  
UNISYS CORP <UIS> 3RD QTR NET. Shr primary 68 cts vs 34 cts Shr diluted 65 cts vs 34 cts Net 129.7 mln vs 52.9 mln Revs 2.22 billlion vs 2.42 billion Avg shrs primary 152.1 mln vs 147.1 mln Avg shrs diluted 199.8 mln vs 147.1 mln Nine mths Shr primary 1.89 dlrs vs 1.00 dlrs Shr diluted 1.84 dlrs vs 1.00 dlrs Net 361.1 mln vs 145.1 mln  Revs 6.91 billion vs 4.90 billion Avg shrs primary 151.0 mln vs 146.4 mln Avg shrs diluted 198.7 mln vs 146.4 mln NOTE: Earnings per share for 1986 have been restated to reflect 3-for-1 split effective July 8, 1987. Results for three and nine mths 1986 includes results from July 1, 1986, of Sperry Corp, acquired on Sept 16, 1986, with net income reflecting ownership in Sperry of about 51 pct for the months of July and August, and 100 pct for the month of Sept 1986.  Revenue for 1986 periods reflects reclassification of revenue of divested Sperry operations to other income with no effect on net income.  
WOBURN FIVE CENTS SAVINGS <WOBS.O> 1ST QTR NET. Shr 24 cts vs 26 cts Net 959,000 vs 1,033,000 Assets 273.6 mln vs 236.3 mln Deposits 183.6 mln vs 173.9 mln Loans 133.3 mln vs 104.9 mln NOTE: Full name of company is Woburn Five Cents Savings Bank.  
FIRST FEDERAL SAVINGS <FCHT.O> 1ST QTR NET. Shr 59 cts Qtly div eight cts vs eight cts prior Net 1,675,000 vs 1,302,000 Assets 613.3 mln vs 603.5 mln Deposits 523.7 mln vs 517.8 mln Loans 469.2 mln vs 449.5 mln NOTE: 1986 per share figures not available because bank converted to stock ownership Dec 18, 1986. Dividend payable Dec 11 to shareholders of record Nov 13. Full name of company is First Federal Savings and Loan Association of Chattanooga.  
INTERNATIONAL RESEARCH <IRDV.O> 3RD QTR PAYOUT. Qtly div nine cts vs nine cts prior qtr Pay Nov 25 Record Nov 13 Note: Full name is International Research and Development Corp  
ROHM AND HAAS CO <ROH> 3RD QTR NET. Shr 57 cts vs 54 cts Net 39.3 mln vs 37.3 mln Sales 540.9 mln vs 488.5 mln Nine mths Shr 2.30 dlrs vs 1.58 dlrs Net 158.8 mln vs 108.7 mln Sales 1.67 billion vs 1.60 billion  
MONSANTO CO <MTC> 3RD QTR NET. Shr 1.30 dlrs vs 1.85 dlrs Net 100,000,000 vs 144,000,000 Sales 1.90 billion vs 1.69 billion Nine mths Shr 5.01 dlrs vs 5.27 dlrs Net 392,000,000 vs 410,000,000 Sales 5.79 billion vs 5.31 billion Note: 1986 figures include 63 mln dlrs, or 81 cts a share, of net gains from facilities and businesses sold, shut down or impaired, and other non-recurring income and expenses  
GEORGIA GULF CORP <GGLF.O> 3RD QTR NET. Shr 1.92 dlrs vs 58 cts Net 27.9 mln vs 9,480,000 Sales 176.4 mln vs 137.9 mln Nine mths Shr 3.87 dlrs vs 1.69 dlrs Net 56.7 mln vs 27.6 mln Sales 505.6 mln vs 438.5 mln  
FINANCIAL CORP OF AMERICA <FIN> 3RD QTR LOSS. Shr loss 2.20 dlrs vs profit 24 cts Net loss 75.8 mln vs profit 11.6 mln Avg shrs primary 35.9 mln vs 36.5 mln Avg shrs diluted 39.3 mln vs 39.9 mln Nine mths Shr primary loss 7.04 dlrs vs profit 1.69 dlrs Shr diluted loss 7.04 dlrs vs profit 1.64 dlrs Avg shrs primary 35.9 mln vs 37.2 mln Avg shrs diluted 39.3 mln vs 46.6 mln  Net loss 243.4 mln vs profit 72.2 mln Assets 33.4 billion vs 34.1 billion Loans 10.8 billion vs 12.0 billion Deposits 16.9 billion vs 17.0 billion NOTE: Net includes FSLIC sepcial assessment loss of 5,429,000 vs 5,193,000 in qtr 1987 vs 1986, and 16.3 mln vs 16.0 mln in nine mths 1987 vs 1986. Net includes gain from sale of mortgage-backed securities and loans of 12.4 mln vs 93.4 mln, and 139.7 mln vs 264.0 mln in nine mths 1987 vs 1986.  Net includes gain from sale of investments of 64,000 in qtr 1987, and 157,000 vs 1,231,000 in nine mths 1987 vs 1986. Net includes provision for losses and discounts of 70.4 mln vs 76.2 mln in qtr 1987 vs 1986, and 315.7 mln vs 161.7 mln in nine mths 1987 vs 1986. Nine mths 1987 included write off of FSLIC secondary reserve of 22.7 mln.  
J.P. MORGAN AND CO INC <JPM> 3RD QTR NET. shr profit 1.18 dlrs vs profit 1.15 dlrs net profit 219.2 mln vs profit 211.5 mln nine mths shr loss 84 cts vs profit 3.72 dlrs net loss 140.8 mln vs profit 682.4 mln assets 79.69 billion vs 71.99 billion loans 33.93 billion vs 35.33 billion deposits 45.68 billion vs 41.22 billion NOTE: 1987 nine mths include previously reported 875 mln dlr addition to loan loss reserve in 2nd qtr for ldc debts  
HOME SAVINGS BANK <HMSB.O> 3RD QTR NET. Shr 57 cts Net 6,889,000 vs 10.7 mln Nine mths Shr 1.67 dlrs Net 20.1 mln vs 22.9 mln Assets 1.63 billion vs 1.47 billion Deposits 1.17 billion vs 1.19 billion Loans 1.25 billion vs 936.5 mln NOTE: 3rd qtr and nine mths 1986 per share figures not available because bank converted to stock form Nov 28, 1986.  
PLAINS PETROLEUM CO <PLP> 3RD QTR NET. Shr 15 cts vs 13 cts Net 1,352,000 vs 1,210,000 Revs 5,953,000 vs 3,309,000 Nine mths Shr 36 cts vs 27 cts Net 3,257,000 vs 2,416,000 Revs 16.6 mln vs 9,705,000 NOTE: If FASB adopts accounting changes, then 1987 3rd qtr per share results will be restated to 22 cts, and 54 cts a share for 1987 nine mths.  
WELLS-GARDNER CORP <WGA> 3RD QTR NET. Shr profit three cts vs loss two cts Net profit 107,000 vs 87,000 loss Revs 6,769,000 vs 4,992,000 Nine mths Shr profit 21 cts vs loss nine cts Net profit 778,000 vs loss 314,000 Revs 21.9 mln vs 13.9 mln  
AMERICAN CYANAMID CO <ACY> 3RD QTR NET. Oper shr 59 cts vs 49 cts Oper net 54.7 mln vs 44.8 mln Sales 1.04 billion vs 921.4 mln Nine mths Oper shr 2.22 dlrs vs 1.62 dlrs Oper net 203.8 mln vs 150.4 mln Sales 3.14 billion vs 2.87 billion Avg shrs 91.6 mln vs 93.1 mln NOTE: 1986 share data restated to reflect 100 pct stock dividend distributed June 12  1987 operating net in both periods excludes additional gain of 11.6 mln dlrs, or 13 cts a share, associated with 1985 sale of Formica Brand Products Group business 1987 nine month operating net includes pre-tax gain of 12.0 mln dlrs, equal to about 13 cts a share, from sale of Jacqueline Cochran businesses  
TANDY CORP <TAN> 1ST QTR SEPT 30 NET. Shr 71 cts vs 49 cts Net 64.3 mln vs 43.7 mln Revs 838.2 mln vs 742.6 mln Avg shrs 89.9 mln vs 89.9 mln  
BELL ATLANTIC CORP <BEL> 3RD QTR NET. Shr 1.62 dlrs vs 1.49 dlrs Net 321.8 mln vs 297.9 mln Revs 2.59 billion vs 2.49 billion Avg shrs 198.8 mln vs 199.5 mln Nine mths Shr 2.80 dlrs vs 4.48 dlrs Net 955.4 mln vs 895.2 mln Revs 7.70 billion vs 7.32 billion Avg shrs 199.0 mln vs 199.7 mln  
WANG LABORATORIES INC <WANB> 1ST QTR SEPT 30. Shr profit 14 cts vs loss 19 cts Net profit 22.5 mln vs loss 30.0 mln Revs 693.0 mln vs 597.9 mln Avg shrs 166.0 mln vs 154.2 mln NOTE: Prior year net includes five mln dlr tax credit.  
BROCKWAY INC <BRK> 3RD QTR NET. Shr 98 cts vs 70 cts Net 12.3 mln vs 8,699,000 Sales 284.7 mln vs 280.7 mln Nine mths Shr 2.83 dlrs vs 2.23 dlrs Net 35.3 mln vs 27.6 mln Sales 824.6 mln vs 818.4 mln NOTE: Share adjusted for December 1986 three-for-two split.  
XIDEX CORP <XIDX.O> 1ST QTR SEPT 30 NET. Shr 13 cts vs 22 cts Net 5,452,000 vs 9,789,000 Sales 155.7 mln vs 135.1 mln NOTE: Prior year net includes gain 6,556,000 dlrs from sale of shares of Seagate Technology Corp <SGAT.O>.  
CALFED INC <CAL> 3RD QTR NET. shr 1.99 dlrs vs 2.05 dlrs diluted shr 1.80 dlrs vs 1.75 dlrs net 50.0 mln vs 48.5 mln nine months shr 5.37 dlrs vs 5.69 dlrs diluted shr 4.87 dlrs vs 4.76 dlrs net 134.6 mln vs 129.6 mln  
SECURITY PACIFIC CORP <SPC> 3RD QTR NET. Shr 1.16 dlrs vs 1.09 dlrs Net 128.1 mln vs 118.3 mln Avg Shrs 108.8 mln vs 105.7 mln Nine Months Shr 40 cts vs 3.12 dlrs Net 53.2 mln vs 335.1 mln Avg Shrs 108.0 mln vs 105.2 mln Note: Prior-period data have been restated to include on a pooling-of-interest basis the August 31, 1987, acquisition of Rainier Bancorporation.  
PHELPS DODGE CORP <PD> 3RD QTR NET. Shr 1.77 dlrs vs 60 cts Net 58.2 mln vs 19.4 mln Revs 377.4 mln vs 188.0 mln Nine mths Shr 3.10 dlrs vs 1.51 dlrs Net 100.3 mln vs 50.6 mln Revs 1.11 billion vs 639.7 mln NOTE: 3rd qtr 1987 net includes about 3,000,000 dlrs after-tax extraordinary gain on retirement of debt.  
CRANE CO <CR> 3RD QTR NET. Shr 70 cts vs 54 cts Net 16.7 mln vs 12.5 mln Revs 343.6 mln vs 323.1 mln Avg shrs 23.9 mln vs 24.8 mln Nine mths Shr 1.98 dlrs vs 1.23 dlrs Net 46.9 mln vs 27.8 mln Revs 960.5 mln vs 893.2 mln Avg shrs 24.2 mln vs 24.9 mln  NOTE: 1986 figures reflect the adjustment for 3-for-2 split in May 1987. Net for nine mths 1987 includes a cumulative effect of a change in accounting for gain on pension assets reversion of 10.1 mln or 42 cts a shr.  
LOTUS DEVELOPMENT CORP <LOTS.O> 3RD QTR NET. Shr 42 cts vs 21 cts Net 19.1 mln vs 9,528,000 Sales 101.2 mln vs 65.6 mln Avg shrs 46.0 mln vs 46.0 mln Nine mths Shr 1.08 dlrs vs 69 cts Net 49.1 mln vs 32.7 mln Sales 280.0 mln vs 201.0 mln Avg shrs 45.6 mln vs 47.4 mln NOTE: Share adjusted for February 1987 two-for-one split.  
SOUTHWEST BANCORP <SWB> 3RD QTR LOSS. Oper shr loss 82 cts vs profit 12 cts Oper net loss 4,134,000 vs profit 544,000 Avg shrs 5,030,000 vs 3,927,000 Nine mths Oper shr loss 80 cts vs profit 32 cts Oper net loss 3,615,000 vs profit 1,457,000 Avg shrs 4,557,000 vs 3,927,000 NOTE: 1986 net excludes tax loss carryforwards of 105,000 dlrs in quarter and 195,000 dlrs in nine mths. 1986 quarter net includes 212,000 dlr tax credit. 1987 net both periods includes 3,700,000 dlr addition to loan loss reserves due mostly to one out-of-state real estate transaction.  
GATX CORP <GMT> 3RD QTR NET. Shr 95 cts vs 36 cts Net 9,100,000 vs 3,300,000 Revs 143.7 mln vs 132.4 mln Avg shrs 9,884,000 vs 9,780,000 Nine mths Shr 2.77 dlrs vs 1.49 dlrs Net 26,600,000 vs 19,000,000 Revs 401.8 mln vs 385.2 mln Avg shrs 9,871,000 vs 12,565,000 NOTE: 1986 earnings include a loss from discontinued operations of 1,000,000 dlrs, or 10 cts a share in the quarter and a gain of 2,500,000 dlrs, or 19 cts a share for the nine months  
MICROSOFT CORP <MSFT.O> 1ST QTR NET. Shr 38 cts vs 29 cts Net 21.3 mln vs 15.8 mln Revs 102.6 mln vs 66.8 mln  
CMS ENERGY CORP <CMS> 3RD QTR NET. Shr 65 cts vs 10 cts Net 55,960,000 vs 8,785,000 Revs 588.2 mln vs 596.1 mln Avg shrs 85,710,000 vs 87,987,000 Nine mths Shr 1.24 dlrs vs 44 cts Net 106,738,000 vs 39,055,000 Revs 1.98 billion vs 2.24 billion Avg shrs 86,320,000 vs 88,007,000 NOTE: 1986 data restated for adoption of new accounting standard relating to pensions 1987 nine month earnings include 331 mln dlr after-tax writeoff in the 4th Qtr of 1985 of a portion of the assets of the company's Midland nuclear project  
CURTICE BURNS FOODS INC <CBI> 1ST QTR NET. Qtr ends Sept 25 Shr 75 cts vs 64 cts Net 2,794,000 vs 2,363,000 Revs 157.8 mln vs 138.4 mln NOTE: 1986 qtr figures exclude effect of 1986 tax reform act which retroactively reduced earnings from 64 cts to 56 cts per shr.  
LINDBERG CO <LIND.O> 3RD QTR NET. Shr profit 10 cts vs profit eight cts Net profit 477,853 vs profit 348,384 Sales 17.7 mln vs 17.3 mln Nine mths Shr loss 35 cts vs profit 45 cts Net loss 1,639,216 vs profit 2,305,700 Sales 56.2 mln vs 57.1 mln Avg shrs 4,698,501 vs 5,075,717 NOTE: Earnings in the 2nd Qtr of 1987 were reduced by 3,262,000 dlrs, or 69 cts a share from a charge reflecting elimination or transfer of certain product lines and operations at the company's Racine, Wis. foundry  
PLY GEM INDUSTRIES INC <PGI> 3RD QTR NET. Shr 30 cts vs 17 cts Shr diluted 30 cts vs 17 cts Net 3,454,000 vs 1,546,000 Sales 84.0 mln vs 59.2 mln Avg shrs 11.6 mln vs 8,917,000 Avg shrs diluted 11.7 mln vs 11.2 mln Nine mths Shr 91 cts vs 72 cts Shr diluted 90 cts vs 65 cts Net 10.5 mln vs 5,959,000 Sales 236.7 mln vs 168.9 mln Avg shrs 11.5 mln vs 8,227,000 Avg shrs diluted 11.6 mln vs 11.2 mln  
EMULEX CORP <EMLX.O> 1ST QTR SEPT 27 NET. Shr 13 cts vs 12 cts Net 1,612,000 vs 1,571,000 Revs 28.8 mln vs 25.0 mln Avg shrs 12.8 mln vs 13.3 mln  
LYPHOMED INC <LMED.O> 3RD QTR NET. Shr 18 cts vs 13 cts Net 5,436,000 vs 3,888,000 Sales 43.9 mln vs 31.5 mln Avg shrs 30,145,000 vs 28,976,000 Nine mths Shr 51 cts vs 38 cts Net 15,320,000 vs 11,098,000 Sales 123.6 mln vs 91.2 mln Avg shrs 30,157,000 vs 29,046,000 NOTE: Earnings adjusted for three-for-two stock split paid June 20, 1986  
INTELLICORP <INAI.O> 1ST QTR SEPT 30 LOSS. Shr loss nine cts vs loss 12 cts Net loss 649,000 vs loss 850,000 Revs 5,059,000 vs 4,084,000 Avg shrs 7,041,000 vs 6,900,000 NOTE: Current year net includes charge 152,000 dlrs from amortization of previously capitalized software costs. Capitalized product development costs 276,000 dlrs vs 640,000 dlrs.  
OWENS AND MINOR INC <OBOD.O> 3RD QTR NET. Shr 36 cts vs 36 cts Shr diluted 34 cts vs 31 cts Net 1,679,000 vs 1,418,000 Sales 147.2 mln vs 121.5 mln Avg shrs 4,608,000 vs 3,963,000 Avg shrs diluted 5,585,000 vs 5,463,000 Nine mths Shr 1.04 dlrs vs 86 cts Shr diluted 93 cts vs 77 cts Net 4,387,000 vs 3,393,000 Sales 420.3 mln vs 338.7 mln Avg shrs 4,233,000 vs 3,948,000 Avg shrs diluted 5,564,000 vs 5,468,000  
TRINOVA CORP <TNV> 3RD QTR NET. Shr 52 cts vs 43 cts Net 17.7 mln vs 14.2 mln Sales 413.1 mln vs 361.6 mln Avg shrs 34.3 mln vs 30.3 mln Nine mths Oper shr 1.58 dlrs vs 66 cts Oper net 53.9 mln vs 26.7 mln Sales 1.22 billion vs 1.08 billion Avg shrs 33.5 mln vs 35.2 mln NOTE: 1986 nine mths net includes 20.6 mln dlr provision for restructuring but excludes 85.0 mln dlr gain on sale of discontinued glass business and 1,330,000 dlr gain from discontinued operations. Quarter orders 350.2 mln dlrs vs 296.7 mln dlrs.  Backlog 507.6 mln dlrs vs 444.4 mln dlrs.  
TDK GROUP NET UP 17.6 PCT IN NINE MONTHS. Nine months ended August 31 Group shr 118.66 yen vs 100.89 yen Group shr per ADS 237.32 vs 201.78 Net 14.28 billion vs 12.14 billion Pretax 34.48 billion vs 29.45 billion Sales 288.08 billion vs 278.50 billion Company's full name is TDK Corp <TDK.T>.  
TDK GROUP NET UP 0.5 PCT IN THREE MONTHS TO AUGUST. Third quarter ended August 31 Group shr 34.92 yen vs 34.74 Group shr per ADS 69.84 vs 69.48 Net 4.20 billion vs 4.18 billion Pretax 10.30 billion vs 9.73 billion Sales 95.96 billion vs 92.59 billion Company's full name is TDK Corp <TDK.T>  
SUMITOMO BANK AIMS AT QUICK RECOVERY FROM MERGER. Sumitomo Bank Ltd <SUMI.T> is certain to lose its status as Japan's most profitable bank as a result of its merger with the Heiwa Sogo Bank, financial analysts said. Osaka-based Sumitomo, with desposits of around 23.9 trillion yen, merged with Heiwa Sogo, a small, struggling bank with an estimated 1.29 billion dlrs in unrecoverable loans, in October. But despite the link-up, Sumitomo President Koh Komatsu told Reuters he is confident his bank can quickly regain its position. "We'll be back in position in first place within three years," Komatsu said in an interview. He said that while the merger will initially reduce Sumitomo's profitability and efficiency, it will vastly expand Sumitomo's branch network in the Tokyo metropolitan area where it has been relatively weak. But financial analysts are divided on whether and how quickly the gamble will pay off. Some said Sumitomo may have paid too much for Heiwa Sogo in view of the smaller bank's large debts. Others argue the merger was more cost effective than creating a comparable branch network from scratch. The analysts agreed the bank was aggressive. It has expanded overseas, entered the lucrative securities business and geared up for domestic competition, but they questioned the wisdom of some of those moves. "They've made bold moves to put everything in place. Now it's largely out of their hands," said Kleinwort Benson Ltd financial analyst Simon Smithson. Among Sumitomo's problems are limits placed on its move to enter U.S. Securities business by taking a share in American investment bank Goldman, Sachs and Co. Sumitomo last August agreed to pay 500 mln dlrs for a 12.5 pct limited partnership in the bank, but for the time being at least, the Federal Reserve Board has forbidden them to exchange personnel, or increase the business they do with each other. "The tie-up is widely looked on as a lame duck because the Fed was stricter than Sumitomo expected," said one analyst. But Komatsu said the move will pay off in time. "U.S. Regulations will change in the near future and if so, we can do various things. We only have to wait two or three years, not until the 21st century," Komatsu said. Komatsu is also willing to be patient about possible routes into the securities business at home. Article 65 of the Securities and Exchange Act, Japan's version of the U.S. Glass-Steagall Act, separates commercial from investment banking. But the walls between the two are crumbling and Komatsu said he hopes further deregulation will create new opportunities. "We need to find new business chances," Komatsu said. "In some cases these will be securities related, in some cases trust bank related. That's the kind of deregulation we want." Until such changes occur, Sumitomo will focus on such domestic securities business as profitable government bond dealing and strengthening relations with Meiko Securities Co Ltd, in which it holds a five pct share, Komatsu said. He said Sumitomo is cautiously optimistic about entering the securities business here through its Swiss universal bank subsidiary, Banca del Gottardo. The Finance Ministry is expected to grant licences to securities subsidiaries of U.S. Commercial banks soon, following a similar decision for subsidiaries of European universal banks in which the parent holds a less than 50 pct. But Komatsu is reluctant to push hard for a similar decision on a Gottardo subsidiary. "We don't want to make waves. We expect this will be allowed in two or three years," he said. Like other city banks, Sumitomo is also pushing to expand lending to individuals and small and medium businesses to replace disappearing demand from big business, he added. The analysts said Sumitomo will have to devote a lot of time to digesting its most recent initiatives, including the merger with ailing Heiwa Sogo. "It's (Sumitomo) been bold in its strategies," said Kleinwort's Smithson. "After that, it's a question of absorbing and juggling around. It will be the next decade before we see if the strategy is right or wrong."  
CRA SOLD FORREST GOLD FOR 76 MLN DLRS - WHIM CREEK. <Whim Creek Consolidated NL> said the consortium it is leading will pay 76.55 mln dlrs for the acquisition of CRA Ltd's <CRAA.S> <Forrest Gold Pty Ltd> unit, reported yesterday. CRA and Whim Creek did not disclose the price yesterday. Whim Creek will hold 44 pct of the consortium, while <Austwhim Resources NL> will hold 27 pct and <Croesus Mining NL> 29 pct, it said in a statement. As reported, Forrest Gold owns two mines in Western Australia producing a combined 37,000 ounces of gold a year. It also owns an undeveloped gold project.  
ANHEUSER-BUSCH JOINS BID FOR SAN MIGUEL. Anheuser-Busch Companies Inc <BUD.N> has joined several other foreign bidders for sequestered shares of the Philippines' largest food and beverage maker San Miguel Corp <SANM.MN>, the head of a government panel which controls the shares told Reuters. Ramon Diaz, Secretary of the Presidential Commission on Good Government (PCGG), said Anheuser-Busch had told the government it was interested in buying 14 mln "B" shares of San Miguel. He did not disclose the offered price. Diaz said Australian brewer Alan Bond's Bond Corp Holdings Ltd had offered 150 pesos per share for the "B" shares. Diaz said New York investment bank Allen and Co Inc had earlier said it was interested in buying all 38.1 mln sequestered shares. He told Reuters last month Elders IXL Ltd <ELXA.S>, the Melbourne-based brewing company, had also bid for the "B" shares. The Hong Kong Economic Journal last month quoted a spokesman of Australian stock broker Jacksons Ltd as saying that <Barwon Farmlands Ltd>, an Australian firm owned 30 pct by <Ariadne Australia Ltd>, was planning a Filipino branch in order to buy the entire block of 38.1 mln shares. Anheuser-Busch last year made a 150 mln dlr bid to buy <San Miguel Brewery Ltd>, a Hong Kong listed company which is 69.65 pct owned by <Neptunia Corp Ltd>, a San Miguel Corp subsidiary. The talks broke down last June after the two sides said they could not agree on the terms of the sale.  
MONIER SAYS BRITAIN'S REDLAND MAY BID FOR IT. Diversified building materials group Monier Ltd <MNRA.S> said talks are taking place which may lead to Britain's Redland Plc <RDLD.L> making an offer for the Monier shares it does not already hold, chairman Bill Locke said. Redland already holds about 49 pct of Monier's 156.28 mln issued shares, he said in a brief notice to the Australian Stock Exchange. Locke said shareholders would be advised as soon as the discussions progressed and recommended that they keep their shares. Monier shares were trading at a 1987 high of 3.10 dlrs today, up from the previous peak of 2.80 at yesterday's close, and well above the 1987 low of 2.18 dlrs. Monier is the largest concrete roof tile manufacturer in Australia, the U.S. And New Zealand and the world's largest marketer of fly ash, according to its annual report for 1985/86 ended June 30. It recently reported first-half 1986/87 net fell to 15.02 mln dlrs from 17.09 mln a year earlier due to the Australian housing downturn, although foreign earnings rose.  
BELL GROUP CONFIRMS STANDARD CHARTERED STAKE. The Bell Group Ltd <BLLA.S> said it now holds 14.9 pct of the issued capital of Standard Chartered Plc <STCH.L> after acquiring further shares. The one-sentence statement from Bell's headquarters confirmed what its brokers Warburg Securities told Reuters in London yesterday. Bell previously held 10 pct of Standard. Bell chairman Robert Holmes a Court, who is also a director of Standard, was not available for comment on his company's intentions in boosting its holding and other company officials contacted here by Reuters declined to comment.  
NIPPON STEEL DENIES CHINA SEEKING JAPANESE PLANTS. Nippon Steel Corp <NSTC.T> denied local newspaper reports that China has been seeking to buy steel plants from Japanese firms which plan to suspend output under the recently announced rationalisation program. The Mainichi Shimbun quoted Nippon Steel as saying that China's State Planning Commission and some Chinese firms have asked Japanese makers to sell them steel works and rolling mills to expand steelmaking cheaply. It named no sources. A Nippon Steel spokesman told Reuters that China has made no such official request, and the company was not considering such sales at the moment. But Mainichi quoted Nippon Steel officials as saying if prices are reasonable, they would export their used mills to China. The paper said China's crude steel output totalled 52 mln tonnes in calendar 1986 and that it plans to increase to 80 mln by 1996. Japan's steel industry rationalisation plan is aimed at cutting production capacity sharply over the next few years.  
SAN MIGUEL DEAL HIT BY MORE LAWSUITS. A bid by San Miguel Corp (SMC) <SANM.MN> to buy back 38.1 mln sequestered shares from United Coconut Planters Bank (UCPB) has been hit by two new lawsuits, sources in the Philippine food and brewery company said. A Manila court yesterday issued an injunction barring UCPB from selling the shares, which represent 31 pct of SMC's outstanding capital stock of 121 mln shares, until hearings on April 21 on a petition filed by Eduardo Cojuangco, a former chairman of both SMC and UCPB. Cojuangco said the Coconut Industry Investment Fund (CIIF) and 1.4 mln farmers were the rightful owners of the shares. Cojuangco said the shares were held in trust by UCPB and represented a blue chip investment. His petition said UCPB's plans to sell the shares to SMC were "a serious breach of fiduciary duties." The SMC sources said the proposed share sale could also be held up by a second derivative suit filed before the Securities and Exchange Commission (SEC) by Eduardo de los Angeles, a government nominee on the company's board. De los Angeles, who represents SMC's minority stockholders, asked the SEC to block the transaction, approved last week by the company's board. On April 2 the board sanctioned the repurchase of the sequestered shares for 4.79 billion pesos at 126 pesos per share. De los Angeles told the SEC the company's retained earnings of 1.33 billion pesos would be wiped out by the purchase of the shares and would prevent the declaration of dividends. De los Angeles said the share purchase would also violate an SMC agreement with its creditors to maintain a 2.2-to-1 debt to equity ratio. He quoted SMC's chief financial director Ramon del Rosario as telling the board that the transaction would boost the ratio to 2.5-to-1. In petitioning the SEC, de los Angeles amended an earlier suit two weeks ago in which he charged SMC Chairman Andres Soriano III and nine other directors of violating their duties. De los Angeles' earlier complaint related to SMC assuming last December a 26.5 mln dlr loan contracted by SMC's Hong Kong subsidiary <Neptunia Corp> for a down payment on the shares. The loan assumption was again ratified by last week's board meeting. An arbitration panel set up by President Corazon Aquino to resolve the ownership issue is expected to submit its report by April 15. "The amended suit filed by Eduardo de los Angeles is part of a continuing attempt by certain elements, in complete disregard of the facts and with questionable motives, to delay an early disposition of the sequestered shares," San Miguel Corp said in a statement. "Coming as it does, when San Miguel Corp and UCPB have reached agreement on the price of the shares and the method of payment, this suit is in direct contravention of the government's expressed desire to reach an amicable settlement of the controversy by April 15," the statement added. A San Miguel spokesman said he had no comment on Cojuangco's court petition, adding: "Any statement coming from us might be interpreted as adversarial." Meanwhile, Ramon Diaz, the head of a government panel which sequestered the shares last year, said Soriano was not eligible to buy the major portion of the shares because he was a United States citizen. The sequestered shares are split into 24 mln "A" shares, which can only be owned by Filipinos, and 14 mln "B" shares which are available to foreign buyers. SMC sources said Soriano personally was not among prospective buyers. They said the shares would be purchased by the <A.Soriano> group of companies, SMC, Neptunia and unnamed institutional investors. Soriano was named as one of the buyers in a bid in March 1986 for 33 mln shares controlled by UCPB. The sale was aborted when Diaz's Presidential Commission on Good Government sequestered the shares on suspicion they were owned by Cojuangco, a close associate of former President Ferdinand Marcos. Cojuangco lives in self-imposed exile in the U.S.. The shares grew to 38.1 mln after a 15 pct stock dividend announced last June. "We have no objection to Soriano buying the "B" shares," Diaz told Reuters. "But everything is on hold now." The SMC spokesman said he did not know if the controversy would be resolved before the company's annual stockholders' meeting, scheduled for May 14. San Miguel Corp reported sales revenue of 12.2 billion pesos in 1986, 11 pct above its 10.9 billion peso sales in 1985. It said unaudited net profit was in the neighbourhood of 700 mln pesos, an increase of about 50 pct over 1985.  
CINCINNATI BELL <CSN> STARTS AUXTON <AUXT> BID. Cincinnati Bell Inc said it has started its previously-announced 15.75 dlr per share tender offer for all shares of Auxton Computer Enterprises Inc. In a newspaper advertisement, the company said the tender and withdrawal rights will expire May Five unless extended. The offer, which has been approved by the Auxton board and is to be followed by a merger at the same price, is conditioned on receipt of a majority of Auxton's voting stock on a fully diluted basis.  
UNILEVER SEEKS BUYER FOR STAUFFER CHEMICAL. Unilever Plc and NV <UN.AS> has issued a prospectus through investment bankers Goldman Sachs and Co seeking a buyer for <Stauffer Chemical Co> of the U.S., Which it acquired with the recent takeover of <Chesebrough-Pond's Inc>, a Unilever spokesman said. He noted Unilever has been indicating plans to dispose of Stauffer, plus some smaller assets of Chesebrough, since the bid was made in December. The Stauffer sale prospectus has been sent in recent weeks to a number of companies expressing interest. The Unilever spokesman declined to say how much the group expected to receive for Stauffer. Chesebrough's footwear and tennis racket businesses are also likely to be disposed of, he added. Immediately available financial information on Stauffer, which is wholly-owned, was limited, he added. Nine month sales to September 1986 were about 1.2 billion dlrs. Unilever aquired Chesebrough for 3.2 billion dlrs in order to benefit from its well-known toiletry brands and food products.  
CONRAC CORP SAID IT HAS ENTERED TALKS ON ITS ACQUISITION WITH SEVERAL PARTIES. CONRAC CORP SAID IT HAS ENTERED TALKS ON ITS ACQUISITION WITH SEVERAL PARTIES  
CONRAC <CAX> IN MERGER TALKS WITH SEVERAL. Conrac Corp sait has started negotiations with several interested parties on its possible acquisition. It said there can be no assurance that any transaction will result from the talks.  It gave no further details. Mark IV Industries Inc <IV> started tendering for all Conrac shares at 25 dlrs each on March 24 and owned 9.9 pct of Conrac before starting the bid. Conrac is a producer and marketer of computer-related information display and communications equipment which also produces special purpose architectural and industrial products. It owns Code-A-Phone Corp, a producer of telephone answering machines. For 1986, the company reported profits of 7.8 mln dlrs, or 1.16 dlrs a share, on sales of 153.9 mln dlrs. It has nearly 6.8 mln shares outstanding.  
I.U. INTERNATIONAL <IU> TO SELL INSURANCE UNITS. I.U. International Co said it reached a preliminary agreement to sell the Hawaiian Insurance Cos to Hawaiian Electric Industries Inc. <HE>. Terms of the transaction were not disclosed, the company said. The transaction is subject to the execution of definitive agreements, certain governmental approvals and approvals by the boards of directors involved, I.U. International said. Hawaiian Electric said the planned purchase was part of its strategy to increase the company's investment in selected service industries in Hawaii, including financial services.  
PROXMIRE OUTLINES INSIDER TRADING LEGISLATION. Senate Banking Committee Chairman William Proxmire (D-Wis) said he planned to introduce legislation shortly to require greater public disclosure of corporate takeovers and fairer treatment for all shareholders. Speaking to the National Association of Manufacturers, Proxmire said recent insider trading stock scandals increased the chance that Congress will act to curb abuses. "We are proposing legislation that would provide for more disclosure, would be fairer to all shareholders, and would insure that takeovers are properly financed," he said. Among the provisions, the bill would reduce the threshold for notifying the Securities and Exchange Commission that a investor or group has acquired a percentage of stock in a company to three pct from the current five pct threshold within 10 days, Proxmire said. In addition, there would be a pre-notificaton requirement that an investor intended to aquire three pct that would have to filed with the SEC. Proxmire said the pre-notification requirement was meant to prevent arbitragers from having a jump on the general public in knowing about coming takeover attempts. Proxmire said he would call for extending the period that a tender offer must be kept open under the Williams Act to 60 business days from the current 20 business days. His bill would provide for private suits if the acquiring company violated the time period on the tender offer. To correct abuses in the financing of takeovers, Proxmire said the legislation would aim at insuring current margin requirments are properly enforced. The Federal Reserve Board has a 50 pct margin requirement for purchasing stock, but Proxmire said it is not generally enforced in hostile takeovers. Rather, the groups or individuals leading a takeover declare that they can raise the capital for a takeover without actually putting any of their own money, Proxmire said. He said his bill would allow private suits for damages for failure to meet the Federal Reserve's 50 pct margin requirements. The bill also would require more disclose when several investors form an alliance in a hostile takeover. "When Pickens and Icahn get together we want people to know about it," Proxmire said. Proxmire said he favored the approach used in Britain towards two-tiered tender offers that insures that all shareholders recieve equal treatment. He said he expected amendments to the bill also would cover defensive mechanisms such as green mail and poison pills. Proxmire said he intended to introduce his bill later this month and predicted the Senate committee would act this spring. He said he was hopeful Congress could pass a bill this year.  
PAXAR CORP <PAKS> MAKES ACQUISITION. Paxar Corp said it has acquired Thermo-Print GmbH of Lohn, West Germany, a distributor of Paxar products, for undisclosed terms.  
CANADIAN BASHAW, ERSKINE RESOURCES TO MERGE. Canadian Bashaw Leduc Oil and Gas Ltd said it agreed to merge with Erskine Resources Ltd. Terms were not disclosed. Ownership of the combined company with 18.8 pct for the current shareholders of Canadian Bashaw and 81.2 pct to the current shareholders of Erskine, the companies said.  
SOUTHMARK <SM> ACQUIRES 28 NURSING HOMES. Southmark Corp said it acquired 28 long-term care facilities containing for approximately 70 mln dlrs in cash. It said the facilities, which contain approximately 2,500 beds in seven western states, were bought from Don Bybee and Associates, of Salem,Ore. The acquistion brings to 57 health care facilities acquired in the last three months, the company said.  
NATIONAL GUARDIAN <NATG> MAKES ACQUISITIONS. National Guardian Corp said it has acquired a number of security services companies recently, with aggregate revenues of about 3,500,000 dlrs, for an aggregate cost of about 2,700,000 dlrs. It said it acquired guard service companies C.S.C. Security Gaurd Service of Paramus, N.J., from Cartel Security Consultants Inc, the Guard Services Division of Security Services of America of Wayne, N.J., Capital Investigations and Protective Agency of Hackensack, N.J., and Meyer Detective Agency Inc of National Park, N.J. The company said it bought alarm service operations Certified Security Services Inc of Key West, Fla., Custom Security Services of Myrtle Beach, S.C., A-T-E Security Group Inc of Houston and the Louisville, Kent and Nashville, Tenn, offices of Wells Fargo Alarm Services.  
WEDGESTONE REALTY <WDG> ACQUISITION APPROVED. Wedgestone Realty Investors Trust said shareholkders have approved the acquisition of its advisor, Wedgestone Advisory Corp, for 600,000 shares. It said completion is expected to take place April 10.  
READER'S DIGEST ASSOCIATION SELLS UNIT. <The Reader's Digest Association Inc> said it sold its subsidiary, Source Telecomputing Corp, to the venture capital firm of <Welsh, Carson, Anderson and Stowe>. The purchase price was not disclosed, Reader's Digest said. It said it purchased an 80 pct stake in Source in 1980 and earned an unspecified profit on 14 mln dlrs in revenues in 1986.  
SCI-MED <SMLS> BOARD AGREES TO BRISTOL<BMY>DEAL. Sci-Med Life Systems Inc said its directors approved a previously proposed agreement of merger with Bristol-Myers Co. The proposed transaction is subject to completion of a due diligence investigation, including a review by Bristol-Myers of a patent infringement suit served on Sci-Med by Advanced Cardiovascular Systems Inc on March 31, 1987. Bristol-Myers has the right to call off the agreement under certain circumstances, it said. Sci-Med said it continues to believe the patent suit is without merit.  
FIDELCOR <FICR> COMPLETES SALE OF UNIT. Fidelcor Inc said it has completed the sale of its Industrial Valley Title Insurance Co subsidiary to a group of investors including the unit's management for undisclosed terms. Industrial Valley has assets of about 37.6 mln dlrs and was acquired last year along with IVB Financial Corp.  
DOMINION TEXTILE CALLS REPORT OF BID FOR BURLINGTON RUMOR.  DOMINION TEXTILE CALLS REPORT OF BID FOR BURLINGTON RUMOR  
DOMINION CALLS BURLINGTON <BUR> REPORT RUMOR. <Dominion Textile Inc> considers a published report that it has bought a stake in Burlington Industries Inc and is considering making a joint bid for the company to be a rumor, a company spokesman said. "As far as I am concerned and the company is concerned, they are rumors and we're not commenting on rumors," spokesman Michel Dufour told Reuters in response to a query. "All the information that has been given out publicly is that, yes, Dominion Textile is interested in making an acquisition that big...probably based on that people are starting all sorts of rumors," he said. Dufour said yes when asked whether the report was only a rumor, but said the company was not prepared to comment further. Dominion Textile president and chairman Thomas Bell was out of town and unavailable for comment. Dominion Textile last year made an unsuccesful 104-mln- U.S.-dlr bid for Avondale Mills and has maintained a 120-mln- U.S.-dlr line of credit to be used for an American acquisition. Dufour said the company has been negotiating with "many" U.S. textile companies but would not say whether Burlington Industries was one of them. Burlington's stock rose sharply this morning on the report, which said Dominion Textile had joined with U.S. investor Asher Edelman to buy a stake in the company and to consider making a takeover offer. Dominion Textile, which reported operating profit of 11.1 mln Canadian dlrs last year on sales of 926.5 mln dlrs, has repeatedly said it will concentrate on expanding into the U.S. The company has said it plans to diversify into new product and market areas in addition to expanding its textile operations.  
CCL INDUSTRIES PURCHASES STAKE IN MONOBLOC. <CCL Industries Inc> said it purchased a majority interest in Monobloc U.S.A. from Envases Metalurgicos de Alava of Spain. Terms were not disclosed. CCL also said it agreed to exchange present and future technology with Envases.  
MADEIRA IN LETTER OF INTENT TO BE ACQUIRED. <Madeira Inc> said it signed a letter of intent to be acquired by Tradevest Inc through a stock-for-stock exchange. After completion of the transaction, Tradevest would own 90 pct of the issued outstanding stock of Madeira.  
DATRON <DATR> AGREES TO BUYOUT BY OFFICERS. Datron Corp said it agreed to merge with GGFH Inc, a Florida-based company formed by the four top officers of the company. According to terms of the proposed transaction, each share of Datron common stock, excluding those shares owned by the four officers, will be bought for six dlrs a share, it said. Datron's officers hold about 73 pct of the total 896,000 Datron common shares outstanding. Upon completion of the proposed transaction, the officers of Datron would own 100 pct of the company. The merger is subject to GGHF's receiving financing for the plan, Datron said. Shareholders of Datron will be asked to approve the plan at their annual meeting to be held in June or July, and the merger is expected to be completed by July 31, it said.  
TRUMP AND INTERSTATE PROPERTIES IN TALKS TO ACQUIRE ALEXANDERS.  TRUMP AND INTERSTATE PROPERTIES IN TALKS TO ACQUIRE ALEXANDERS  
TRUMP AND INTERSTATE IN TALKS FOR ALEXANDERS. Donald Trump and Interstate Properties said they were holding preliminary discussions regarding a possible joint acquisition of Alexanders Inc at 47 dlrs per share. The possible acquisition is subject to any applicable real estate gains and transfer taxes, the joint statement said. Trump and Interstate, which presently own about 40 pct of Alexander's common stock, said they intend to keep the company as a retailer if they succed in their acquisition. There can be no assurances that the parties will reach any agreement regarding an acquisition or what price might be offered, the statement said.  
YANKEE <YNK> UNIT NOT TO SELL SUBSIDIARY. Yankee Cos Inc said its Eskey Inc <ESK> subsidiary has decided not to sell its Yale E. Key unit. Further details were not disclosed.  
CANADA ALLOWS PUBLISHING TAKEOVER BY HARCOURT. Investment Canada said it has allowed the indirect takeover of Holt, Rinehart and Winston Canada Ltd., W.B. Saunders Co of Canada Ltd and Les Editions HRW Ltd by Harcourt Brace Jovanovich Canada Inc. The government agency said, however, Harcourt Canada has agreed to sell control of the firms to Canadian interests within two years. Harcourt Canada's U.S. parent, Harcourt Brace Jovanovich Inc <HBJ>, indirectly acquired the Canadian book publishing companies when it purchased Holt Rinehart and Winston from CBS Inc <CBS> last October.  
TALKING POINT/BURLINGTON INDUSTRIES <BUR>. The largest U.S. textile maker focused on its own business as its competitors found merger partners, but now Burlington Industries Inc may have restructured itself into an attractive takeover candidate, analysts said. The takeover spotlight fell today on Burlington, which rose 4-7/8 to 52-7/8 on speculation that investor Asher Edelman and Dominion Textiles Inc of Canada bought an almost five pct stake. A published report said Edelman and Dominion jointly acquired a stake in Burlington and were weighing a takeover offer. Edelman would not comment, and a spokesman for Montreal-based Dominion called the report just "rumors." Burlington said it did not know if the report was true. Wall Street professionals said they were not convinced of the story or that Edelman and Dominion would be the victors if Burlington actually came into play. Arbitragers said past comments from Dominion, however, added credence to the speculation. Dominion has said that it was looking for a takeover in the U.S. Last year, Dominion unsuccessfully bid for Avondale Mills and has maintained a 120 mln dlr line of credit to be used for a U.S. acquisition. A Dominion spokesman said Canada's largest textile producer has been negotiating with "many" U.S. textile companies, but would not say whether Burlington was among them. "There have been acquisitions in this area. It's not unusual that someone could be looking at Burlington after the housecleaning they've done," said Eileen Gormley of Thomson McKinnon. Burlington sold its domestic operations, which made sheets and other linens, to J.P. Stevens and Co Inc for 110 mln dlrs last year. It also has reorganized management, and focused its operations on businesses that would be less affected by foreign competition, Gormley said. "They've pulled back so as not to be a commodity marketer," said Gormley. She said in moving more heavily into industrial fabrics, Burlington bought C.H. Masland, which supplies carpets and other fabric to the auto industry. "In the past, they just spent and never realized the return on the outlays they did make," she said. "You look at their record over the year, and I think they're poised to be more profitable than they had been in the past," Gormley said. She estimated 1987 earnings of 2.50 dlrs per share, up from 2.01 dlrs per share. Some analysts today recommended clients not buy Burlington at its current levels. Edward Johnson of Johnson Redbook said he recommends selling. He said he believes the stock is worth only about 50 dlrs on a takeover basis and about 46 dlrs on an earnings basis. Some arbitragers, however, said takeover values have been placed on the company of 60 to 65 dlrs per share. "After Asher's (Edelman) recent history, a lot of people don't find him very credible anymore," said one arbitrager. Another, however, said Edelman succeeds in forcing managements to take steps to enhance shareholder values even if he doesn't win the target company. Edelman was unsuccessful last year in offers for Lucky Stores Inc and Fruehauf Corp. He did succeed in buying Ponderosa Inc. The stocks of other textile makers rose along with Burlington. J.P. Stevens <STN> climbed 5/8 to 44-7/8, and Fieldcrest Cannon Inc <FLD>, the result of a merger of Fieldcrest and Cannon, rose 1-1/8 to 39-3/4. West Point-Pepperell Inc <WPM> rose 1-7/8 to 67-1/8.  
HOECHST CELANESE SENDS REPORT ON NEW FACILITIES. <Hoechst Celanese Corp> said it sent propsective customers a confidential report describing its polyester textile fiber facilities in North Carolina and South Carolina. The company did not disclose any prices. The report describes the facilities in Darlington County, S.C., and Fayetteville, N.C., the company said. The report also decribes related manufacturing, marketing, administrative and technical resources that could be made avialable to a buyer. Hoechst Celanese was formed Feb 27 by the merger of Celanese Corp and American Hoechst Corp. The merger took place after an agreement was reached with the Federal Trade Commission that certain domestic polyester textile fiber assets of the combined companies would be divested, it said. Hoechst Celanese said it has the option of divesting either the South Carolina facilities of the former American Hoechst or a package of polyester textile fiber facilities of the former Celanese.  
U.K. GEC DECLINES COMMENT ON U.S. PURCHASE RUMOUR. General Electric Co Plc <GECL.L> (GEC) declined comment on rumours on the London stock market that it is planning another purchase in the U.S. Medical equipment field, in addition to its existing U.S. Subsidiary <Picker International Inc>. A GEC spokesman said that it is company policy not to comment on acquisition rumours. Stock Exchange traders said the rumour helped GEC's share price to rise 5p, to a final 206p from yesterday's closing price of 201p.  
FRONTIER INSURANCE <FRTR> IN ACQUISITION TALKS. Frontier Insurance Group Inc said it is currently negotiating to acquire the business of Medical Quadrangle Inc, formerly its largest medical malpractice insurance producer, and the business of its other malpractice producer, Medical Professional Liability Agency Inc. It gave no details.  
CORRECTED - DATRON <DATR> AGREES TO BUYOUT. Datron Corp said it agreed to merge with GGHF Inc, a Florida-based company formed by the four top officers of the company. According to terms of the proposed transaction, each share of Datron common stock, excluding those shares owned by the four officers, will be converted into six dlrs a share, it said. Datron's officers hold about 73 pct of the total 896,000 Datron common shares outstanding, it said. (corrects company name, GGHF, in first paragraph)  
SPIE BATIGNOLLES COULD INCREASE COMSTOCK HOLDING. Construction group <Spie Batignolles> is negotiating to increase its holding in U.S. Engineering and electrical installations firm <Comstock>. Spie Batignolles, a subsidiary of Schneider SA <SCHN.PA>, said in a statement it was negotiating to invest 20 mln dlrs in Comstock in the form of bonds convertible into shares. Spie Batignolles has held a 20 pct stake in Comstock since February 1986. A spokesman said if Spie Batignolles converted all the new bonds, it could open the way for the French company to take control of Comstock but he gave no other details.  
UAL <UAL> MAY RESPOND TO PILOTS TODAY. UAL Inc may have a response this afternoon to the pilots union proposal to buy its United Airlines unit, a UAL spokesman said. "Obviously, we have a lot of movement in our stock, and we need to get a clarification out," the spokesman said, adding that there was a "50-50" chance a statement would be released today. The pilots earlier this week offered to buy the airline for 2.3 billion dlrs, and assume 2.2 billion dlrs of existing debt. Takeover speculation has driven UAL's stock for several weeks. UAL last month said New York Real estate developer Donald Trump held a position in its stock, and that he also held discussions with its chairman. The developer indicated in those talks that he took the position as an investment, but he revealed no other plans. Today, rumors circulated that Coniston Partners were buying UAL stock. UAL jumped five to 70-3/4 on volume of more than 3.2 mln shares. "United has got to consider this proposal. I think the pilot's proposal is realistic. I don't exptect them to take it, but it could put some interesting options in front of UAL management," said Timothy Pettee, Bear Stearns and co analyst. Analysts have said UAL made itself vulnerable to attack when it diversified away from its core airline. It added Hertz rental cars, Westin and Hilton International hotels in a strategy to become a travel service company. The strategy left its stock in a slump and its pilots union concerned that the company was not focussing enough attention on its airline. UAL has stood firm on its strategy. It is emphasizing its new focus by changing its name to Allegis, as of May one. But takeover speculation has escalated, and Wall Street has been busy calculating break up values well in excess of 100 dlrs per share. Traders today described the buying in UAL as widespread, indicative to them that big institutions believe the stock is in play. Market sources have said that although Trump attracted attention to the stock, the pilots proposal acted as a catalyst, kicking off a new round of speculation and perhaps throwing the company into the hands of another buyer. "The first domino is you have an investor with a considerable stake. the second domino is the union. That type of attitude has been a precursor to airline deals in the past," said Pettee. "What's interesting is the values are there. There's something for everybody," he said.  
CHRYSLER <C> RENAULT DELAY AM MOTORS <AMO> PACT. Chrysler Corp and Regie Natiionale des Usines Renault said they agreed to extend by up to two weeks the period for reaching definitive agreement on Chrysler's proposed 1.5 billion dlr takeover of American Motors Corp. The letter of intent signed by Chrysler and Renault on March nine set April nine as the target date for completing negotiations. However, the letter also allowed room for an extension of that date to April 23 if an agreement could not be reached. The two companies said they "now plan to complete work by April 23." Chrysler and Renault said, "Given the complex nature of the deal, the need for additional time was to be expected." The March letter of intent between the two companies says that Chrysler could ask Renault to extend the agreement date "in the event that prior to April 9, 1987, Chrysler discovers an unforeseen problem in the course of its 'due diligence' investigation of the company," referring to American Motors. A Chrysler spokeswoman would not say whether some problem had cropped up in the talks. She stuck by the company's statement that more time was needed because the talks are complex. "That is our definition of the delay," she said. Under the previous agreement between Chrysler and Renault, their letter of intent would be terminated on April nine or when an agreement was reached. But the letter could be amendend by a written agreement by both companies. The Chrysler spokeswoman said, "We are still working toward a definitive agreement." Said another Chrysler official who is not part of the talks but who would be told if the deal were in trouble: "There are no glitches." Analysts also downplayed the significance of the delay. "I can't visualize where they wouldn't want it to be done," said Donaldson Lufkin Jenrette analyst Richard Henderson.  
BROKER BOOSTS ZONDERVAN <ZOND> STAKE TO 7.1 PCT. An investor group headed by Minneapolis, Minn., broker Jeffrey Wendel said it raised its stake in Zondervan Corp to 292,900 shares, or 7.1 pct of the total outstanding, from 238,900 shares, or 5.8 pct. In a filing with the Securities and Exchange Commission, the Wendel group said it bought 54,000 Zondervan common shares between March 24 and April 3 at prices ranging from 27.87 to 29.96 dlrs a share. The Wendel group has acted in cooperation with another shareholder group headed by London investor Christopher Moran, who sought unsuccessfully last year to take over Zondervan.  
DAY INT'L <DAY> TO SELL UNIT. Day International Corp said it has entered into a letter of intent to sell its Allen Industries Inc unit to a group including the unit's current management. Day said the sale could enable Day to accelerate its earnings for its current fiscal year ending October 31, 1987. "Net earnings for the full year (ending October 31) should be in the ball park of some analysts' estimates of 16 mln dlrs to 19 mln dlrs," Richard Jacob, Day chairman and chief executive officer said. Day reported earnings of 3.1 mln dlrs, or 39 cts a share, in fiscal 1986. Day said the agreement is subject to the preparation and negotiation of a definitive agreement and the ability of the group to obtain financing.  
UAL <UAL> HAS NO COMMENT ON STOCK RISE. UAL Inc, citing company policy, told the New York Stock Exchange it would not comment on the unusual rise in its stock. UAL, parent of United Airlines, closed up 6-1/4 at 72 on volume of 3.9 mln shares. Wall Street traders said UAL's stock soared in response to the the proposed 4.6 billion dlr buyout offer by United Air's pilots union and on a general rise in air fares throughout the industry.  
NAT'L DISTILLERS SAYS IT AGREES TO SELL SPIRITS UNIT FOR 545 MLN DLRS TO AMERICAN BRANDS.  NAT'L DISTILLERS SAYS IT AGREES TO SELL SPIRITS UNIT FOR 545 MLN DLRS TO AMERICAN BRANDS  
CASCADE IMPORTERS UNIT ACQUIRES PARIS COMPANY. <Cascade Importers Inc USA>'s Cascade International Europa GmbH of West Germany, said it tentatively acquired worldwide rights for the products of Madam Gre from the Bernard Tapie Group in Paris. The agreement calls for Cascade to have the rights for the manufacturing and trading of perfumes, skin care and treatment products, and cosmetics of the group, it said. Cascade said the agreement also includes the exclusive rights to trade through duty-free channels worldwide the designer Gres accessories. In addition, Cascade said it was granted an option to purchase all the assets including the plant and equipment located in France. The company said the cosmetic product line in the U.S. market alone could represent 20 mln dlrs in revenue.  
NATIONAL DISTILLERS <DR> TO SELL SPIRITS UNIT. National Distillers and Chemical Corp said it signed a definitive agreement to sell its spirits division for 545 mln dlrs to James Beam Distilling Co, a unit of American Brands Inc <AMB>. The sale of the spirits division was made under the company's previously announced plan to sell its spirits and wines businesses, it said. The wine business was sold last month for 128 mln dlrs to Heublein Inc, part of Grand Metropolitan PLC, National Distillers said. The purchase price will be paid in cash, a National Distillers spokeswoman said. The sale permits National to focus on its core businesses, chemicals and propane marketing. Proceeds from the sale will be used to repay debt and for other corporate purposes, the company said. In a separate statement, American Brands said the sale would be for 545 mln dlrs plus the assumption of liabilities. The sale would be subject to compliance with the Hart-Scott-Rodino Antitrust Improvements Act and other regulatory approvals, the company said. National's distilled spirits business has sales of about 580 mln dlrs, American Brands said. National's spirits brands include Gilbey's gin and vodka, DeKuyper Liqueurs and Windsor Supreme Canadian Whisky.  
RAYTECH <RAY> BUYS WEST GERMAN COMPANY. Raytech Corp said it acquired <Raybestos Industrie-Produkte GmBH> for 7.5 mln dlrs. Raybestos, with manufacturing facilities in Radevormwald, West Germany, produces friction materials for use in clutch and braking applications.  
HBO <HBOC> URGES SHAREHOLDERS AGAINST ANDOVER. HBO and Co said it sent a letter of strongly urging shareholders not to sign any proxy cards sent by Andover Group. ON March 30, Andover Group, a two-man general partnership which owns about seven pct of HBO's stock, filed preliminary proxy materials with the Securities and Exchange Commission seeking to nominate an alternative slate of directors at the company's April 30 annual meeting. Andover had expressed an interest to acquire the company in September 1986 but HBO has never received an offer from them, it said. In addition, HBO said its financial condition is improving rapidly as the result of a significant restructuring implemented in 1986. It expects the company to report net income of about 40 cts per share in 1987 and a very significant increase in 1988. For the year ended December 1986, the company reported a loss of 3.6 mln dlrs, or 16 cts per share.  
UAP MAKES ACQUISITIONS. <UAP Inc> said it has acquired Slater Auto Electric Ltd, with two Ontario stores, and United Diesel Engine Parts Ltd, of Dartmouth, Nova Scotia, for undisclosed terms. It said the transactions, together with acquisitions earlier this year, will increase its annual sales by about 4.5 mln dlrs.  
DOME <DMP> PLAN MAY FORCE SALE OF ENCOR STAKE. Dome Petroleum Ltd's proposal to restructure debt of more than 6.10 billion Canadian dlrs includes provisions that may force the company to sell its 42 pct stake in <Encor Energy Corp Inc>, Dome said in a U.S. Securities and Exchange Commission filing. Dome said in the filing that its debt plan proposes making payments under a five year income debenture to the lender whose debt is secured by Dome's Encor shares. After the five years are up, "under certain circumstances the shares of Encor may be required to be disposed," the company said. Dome has pledged its 42.5 mln Encor shares as security for part of its debt to <Canadian Imperial Bank of Commerce>, estimated last year at 947 mln dlrs. Analysts have said Commerce Bank was pressing Dome to sell the stock to pay down its debt. Dome's Encor shares had a market value of 313 mln dlrs on March 17, 1987, the company's filing said. As previously reported, Dome is seeking approval in principle for the debt restructuring plan. Dome said in the filing it proposed lenders sign a letter of understanding in early April, with implementation to be effective July 1, 1987. Dome Petroleum reiterated in the SEC filing that its existence as a going concern is dependent on continuing the interim debt plan, due to expire on June 30, and winning agreement for its proposed restructuring plan. "The company believes that the negotiation and implementation of the proposed debt restructuring plan is realistic and achievable," Dome said. "However, the final outcome of the negotiations cannot be predicted at this time," it said.  
MORE AMERICAN BRANDS <AMB> ACQUISITIONS SEEN. American Brands Inc's 545 mln dlrs acquisition of National Distillers and Chemical Corp's liquor business is expected to be one of a series of acquisitions by the tobacco company, analysts said. "They were very frustrated with their inability to get Chesebrough. They said they were looking for an acquisition. It doesn't surprise me that they came up with another one," said Allan Kaplan of Merrill Lynch and Co. American Brands failed late last year in its 2.9 billion dlrs bid for Chesebrough-Ponds Inc when Unilever N.V. agreed to buy the company. But since then, Wall Street has been speculating that American Brands would find another candidate to help reduce its earnings exposure to tobacco. "This is just typical," said George Thompson of Prudential-Bache securities. "There's going to be more to come here. American Brands had to make an acquisition because tobacco is still a significant part of earnings. Their position is a little less favorable than Philip Morris and RJ Reynolds," he said. cash flow from its low growth tobacco, but the tobacco business does require great amounts of capital expenditures. It can therefore use its funds to make acquisitions. Analysts said the National Distillers' spirits company, which makes Gilbey's gin and vodka, Old Grandad and Old Crow whiskey, is not quite the type of acquisition they envisioned. "The distilled spirits business has been in a steady gradual decline for sometime, as has the tobacco business," said Thompson. REUTER...  
CSR SAYS IT IS RETAINING NON-DELHI GAS-OIL STAKES. CSR Ltd <CSRA.S> said its sale of <Delhi Petroleum Pty Ltd> will not affect the other oil and gas interests it manages or operates. CSR sold Delhi, which holds an average 25 pct in the Santos Ltd <STOS.S>-led Cooper-Eromanga Basin onshore gas and liquids joint ventures, to an Exxon Corp <XON> unit for 985 mln dlrs on April 1. In a statement to clarify the position, CSR said it will retain its Roma Gas unit, the associated Roma-Brisbane gas pipeline and the Bula oilfield on Seram, Indonesia, plus exploration interests in Queensland and Hainan Island, China.  
PERGAMON HOLDINGS REDUCES BPCC AND HOLLIS STAKES. <Pergamon Holdings Ltd> and its associate companies said that they had sold 30 mln ordinary shares in the British Printing and Communication Corp Plc <BPCL.L> and 10.5 mln in <Hollis Plc> together with other securities. No total price was given but the company said the proceeds of the sales would be used to fund Pergamon's expansion programme and worldwide acquisition stategy. The company said that following these sales Pergamon's ordinary shareholdings in both BPCC and Hollis remained above 51 pct. It said it had no intention of further reducing its holdings in either company.  
LEX SERVICE BUYS SEARS MOTOR GROUP. Lex Service Plc <LEXL.L> said it had acquired <Sears Motor Group Ltd>, the retail motor distribution arm of Sears Plc < SEHL.L>, and an 11.9 mln stg loan note payable by Sears Motor for 33.4 mln stg. The purchase will be through 1.4 mln stg in cash and the issue to Sears Plc of 8.0 mln new Lex ordinary shares. The company said in a statement that immediately following the acquisition of the motor group, its car and commercial vehicle contract hire fleet of some 3,000 vehicles was sold to <Lex Vehicle Leasing Ltd> for 14.3 mln stg in cash, a sum equal to the net book value of the vehicles transferred. Lex Vehicle is owned equally by Lex Services and <Lombard North Central Plc>. Lex said the shares involved in the transaction were today being placed for Sears Plc with institutions at 400p. These shares will not qualify for the final Lex dividend on 10 April. Lex said in a statement that its acquisition of Sears Motor Group represents a major development for its automotive activities. The enlarged retailing operations of the Lex Automotive group now have a turnover of 530 mln stg. Lex's existing automotive interests include Volvo Concessionaires, the sole importer of Volvo cars and parts into the U.K. Lex said the turnover for Sears Motor Group in the year to 31 December 1986 was 242 mln stg and that at the date of the acquisition the group had about 50 mln stg in external borrowings. Lex shares fell on the announcement to trade around 409p from a 419p close yesterday.  
MEPC EXTENDS OFFER FOR OLDHAM. MEPC Plc <MEPC.L> said that its offer for <Oldham Estates Ltd> would remain open until further notice. On February 26 MEPC made an agreed bid for Oldham based on a formula reflecting its asset value at 30 September 1986. A year earlier Oldham's net asset value was put at 531.4 mln stg. As of 1 April the valuation used under the formula had still to be agreed so Oldham had yet to give a firm recommendation to its shareholders regarding the value of the the offer.  
STEP-SAVER <CODA> SAYS WARRANT EXERCISED. Step-Saver Data Systems Inc said Bergen-Richards Corp has exercised a warrant to buy 450,000 Step-Saver shares at two dlrs each. It said warrants issued to the underwriter in its initial public offering were exercised in March for an aggregate of 169,200 dlrs.  
COAST SAVINGS <CSA> IN TALKS ON BUYING BANK. Coast Savings and Loan Association said it is in talks with the Federal Savings and Loan Insurance Corp on the acquisition of Central Savings and Loan Association of San Diego. Central, which operates 46 branches, has been under management guidance of the FSLIC since May 1985. Coast said the acquisition would give it an entry into the San Joaquin Valley market besides strengthening its presence in the San Diego, Los Angeles and Orange Counties areas.  
BRAMALL TO ACQUIRE GELCO FOR UP TO 26.3 MLN DLRS. <C.D. Bramall Plc> said in a statement accompanying its annual results that it proposed to acquire Gelco U.K. For some 26.3 mln dlrs. Part of the cost will be met by the issue of 2.14 mln new ordinary Bramall shares which are being placed at 265p each. The acquisition will be satisfied by an initial payment of some 25.3 mln dlrs in cash with further payments of 500,000 dlrs up to a maximum 26.3 mln dlrs. These further payments will only be made if profits achieved by Gelco for the year ending July 31, 1987 reach a certain level. Bramall shares were trading 6p lower at 278p.  
C.O.M.B. <CMCO> MAKES ACQUISITION. C.O.M.B. Co said it has acquired the principal assets of National Tech Industries Inc and Telkom Corp, which are engaged in the sale and telemarketing of consumer electronic merchandise and do business as House of Imports and N.L. Industries respectively. The company said it paid a total of 8,700,000 dlrs, including the assumption of liabilities. National Tech had sales of about 23 mln dlrs for 1986, it said.  
CLEVITE INDUSTRIES SAYS J.P. INDUSTRIES OFFERED 13.50. DLRS A SHARE TO BUY COMPANY  CLEVITE INDUSTRIES SAYS J.P. INDUSTRIES OFFERED 13.50 DLRS A SHARE TO BUY COMPANY  
CLEVITE <CLEV> GETS 13.50 DLR/SHR OFFER. Clevite Industries Inc said it received a written proposal from J.P. Industries Inc <JPI> seeking to buy all of its outstanding shares for 13.50 dlrs a share. Clevite's stock was trading on NASDAQ at 13-1/4. J.P. Industries recently completed the acquisition of Clevite's Engine Parts Division. J.P. Industries said its proposed transaction would be financed through borrowings under its available bank lines and a bridge financing facility which Donaldson Lufkin and Jenrette Securities Corp agreed to arrange. To expedite the transaction, J.P. Industries said it would be willing to start a cash tender for Clevite's shares within five days after agreeing upon a definitive merger and confirmation of Clevite's financial results and condition.  
E.F. HUTTON LBO INC SAID TENDER OFFER BY PC ACQUISITTION. FOR PUROLATOR COURIER EXPIRED  E.F. HUTTON LBO INC SAID TENDER OFFER BY PC ACQUISITTION FOR PUROLATOR COURIER EXPIRED  
E.F. HUTTON LBO INC SAYS UNIT TERMINATES MERGER AGREEMENT. WITH PUROLATOR COURIER  E.F. HUTTON LBO INC SAYS UNIT TERMINATES MERGER AGREEMENT WITH PUROLATOR COURIER  
GEMINA HAS NO COMMENT ON AMBROSIANO REPORT. Holding company <Gemina Spa> said it had no comment on an Italian press report today that it has acquired a 12 pct stake in <Nuovo Banco Ambrosiano Spa>. Italian daily La Repubblica said that Gemina paid 205 billion lire for the shareholding from several Italian banks. A Gemina spokeswoman told Reuters, "We have nothing to say about the report." A spokeswoman for Milan-based Ambrosiano said, "We have no information at this time." In February, Ambrosiano chairman Giovanni Bazoli said foreign and domestic firms have expressed interest in buying stakes in the bank.  
ANCHOR FINANCIAL <AFCX> TO MAKE ACQUISITION. Anchor Financial Corp said it has agreed to acquire Waccamaw State Bank of Surfside Beach, S.C., in an exchange of 1.435 Anchor shares for each Waccamaw share, subject to regulatory and shareholder approvals. Waccamaw had assets of 22.8 mln dlrs as of March 31.  
E.F. HUTTON <EFH> UNIT'S PUROLATOR OFFER EXPIRES. E.F. Hutton LBO Inc said the tender offer by its wholly owned unit, PC Acquisition Inc, for Purolator Courier Corp <PCC> expired at 2400 EDT yesterday without the purchase of any Purolator common stock. Hutton added that PC Acquisition also terminated its merger agreement with Purolator. Hutton said the offer, which had been conditioned upon the tender of at least 5,116,892 Purolator shares, or about two-thirds of the outstanding shares, was terminated because the minimum number of shares was not tendered. Purolator had entered into a definitive agreement with PC Acquisition, part-owned by E.F. Hutton LBO Inc, a unit of E.F. Hutton, and some officers of Purolator's U.S. courier division, in which PC offered to purchase 6,332,471 Purolator common stock shares for 35 dlrs a share. Following that move, PC Acquisition planned to merge a subsidiary into Purolator, converting all outstanding Purolator common it did not own into an aggregate 46 mln dlrs principal amount of 12 pct guaranteed debentures due 2002 and warrants to purchase 15 pct of a Purolator unit comprised of Purolator's U.S courier operations. Hutton said as of 2400 EDT yesterday about 181,000 shares of Purolator common stock, or about 2.4 pct of the outstanding shares, had been validly tendered and not withdrawn. PC Acquisition has instructed its depository for the offer to return promptly the Purolator stock deposited by, or on behalf of, tendering shareholders, Hutton said.  
HANSON <HAN> TO BUY INT'L PROTEIN <PRO> STOCK. International Proteins Corp said it has agreed to sell in a private placement 330,000 common shares at 11.75 dlrs a share to a U.S. subsidiary of Hanson Trust Plc. In addition, David Clarke the president of another Hanson Trust subsidiary, Hanson Industries, will be named chairman of International Proteins's executive committee upon his election to the board at the annual meeting. International Proteins recently acquired Clarke's family business, Great South Beach Sales Co, for 900,000 restricted common shares of which 350,000 have been issued to date. International Proteins said its agreement with Hanson Trust is subject to stockholder approval at the annual meeting which is expected to be held in June. The company said Hanson Trust is purchasing the stock for investment purposes, adding the agreement includes restrictions on purchase or sale of the company by Hanson for the next five years. International Proteins said it will use the proceeds to expand domestic operations. The company has about 2.1 mln shares outstanding.  
EXXON <XON> SOUTH AFRICAN UNIT ACQUIRED BY ZENEX. <Zenex Oil Pty Ltd> said it acquired the interests of Esso South Africa, the local subsidiary of Exxon Corp <XON), and will use up to 20 mln rand in profits to finance educational and social programs. The profit scheme will begin after Zenex has paid Exxon an undisclosed purchase price for Esso, Zenex chairman John Truscott said in a statement. The acquisition follows the Exxon withdrawal from South Africa announced last December.  
LVI GROUP <LVI> TO MAKE ACQUISITION. LVI Group Inc said it has agreed in principle to purchase all outstanding shares of <Spectrum Holding Corp> for a proposed 13 mln dlrs in cash. LVI said an additional 10 mln dlrs in common stock and seven mln dlrs in notes will become payable if Spectrum has certain minimum future earnings. LVI, an interior construction firm, said the acquisition is subject to execution of a definitive agreement and completion of due diligence. LVI and Spectrum, an asbestos abatement concern, expect to close the deal in June, LVI said.  
BRENDA MINES SELLING KERR ADDISON SHARES. <Brenda Mines Ltd> said it sold 2,830,390 <Kerr Addison Mines Ltd> shares to a group of underwriters led by Wood Gundy Inc and Brown, Baldwin Nisker Ltd for redistribution. Financial terms were undisclosed.  
PHOENIX FINANCIAL <PHFC> BUYS DATA ACCESS STAKE. Data Access Systems Inc said chairman David Cohen has sold 1,800,000 common shares to Phoenix Financial corp for undisclosed terms and resigned as chairman and chief executive officer. The company said Phoenix Financial now has a 27 pct interest in Data Access and effective control. Data Access said Phoenix chairman Martin S. Ackerman has been named chairman of Data Access as well and two other Phoenix representatives have been named to the Data Access board.  It said four directors other than Cohen have resigned from the board.  
GENERAL PARTNERS CUTS STAKE IN GENCORP <GY>. General Partners told the Securities and Exchange Commission it has reduced its stake in GenCorp Inc to 8.6 pct, from 9.8 pct, by selling 250,000 shares at a price equal to 118.5 dlrs per share. General Partners, which includes GC Holdings Inc and General Acquisitions Inc, said yesterday it was dropping its 100-dlr-a-share hostile takeover bid for GenCorp because of GenCorp's move to buy back its shares for up to 130 dlrs each.  
REXHAM <RXH> REPURCHASES STAKE FROM NORTEK <NTK>. Rexham Corp said it has repurchased 381,050 of its shares or 9.1 pct from Nortek Inc for 42 dlrs each, and Nortek has withdrawn its proposal to acquire Rexham for 43 dlrs per share. Rexham said Nortek has also agreed not to buy Rexham shares or take other actions under a 10-year standstill agreement. The Rexham board had rejected the Nortek bid as inadequate. The company also said its board has authorized the repurchase in the open market or privately from time to time of up to an additional five pct of its own shares and the establishment of an Employee Stock Ownership Plan.  The plan is expected to purchase from Rexham a new convertible preferred stock with 11.5 pct of Rexham's voting power with proceeds of a pension plan overfunding and borrowings.  
DIAMOND CRYSTAL <DSLT> MIGHT SELL SALT UNIT. Diamond Crystal Salt Co said it might sell its salt division. The company said it retained First Boston Corp to assist it with the possible sale of the division, "assuming a fair price and reasonable terms can be obtained." Diamond Crystal said sale of the unit was in the best long-term interests of its shareholders. The company also said it incorporated its Packet Products Division as of April one. The unit will be an indirect wholly owned subsidiary called Diamond Crystal Specialty Foods Inc. Current management of the division will remain.  
HUMANA <HUM> TO SELL MEDICAL OFFICES. Humana Inc said it has agreed in principle to sell 68 MedFirst primary medical care facilities to <Primedical Corp> for undisclosed terms, with transfers taking place over the next four months. It said it retains 37 MedFirst offices, mostly in the Chicago area. The transaction is not expected to have any impact on earnings, Humana said.  
TIME <TL> TO SELL PART OF UNIT. Time Inc said its Time-Life Video Inc subsidiary has agreed in principle to sell its institutional training business to Time-Life Video president William V. Ambrose for undisclosed terms. It said the business will operate as Ambrose Video Publishing.  
NEW JERSEY INVESTOR BUYS 5.2 PCT OF KINARK <KIN>. A New Jersey investor, Joseph Falkenstein, told the Securities and Exchange Commission he holds 5.2 pct of the shares of Kinark Corp. He said he has no plans to change the company and that he bought the shares because he believed the stock was undervalued and would rise in the next six months.  
KURZ-KASCH UPS STAKE IN COMPONENT TECH <CTEC>. Kurz-Kasch Inc, a Dayton thermoset molding maker, told the Securities and Exchange Commission it had increased its holdings in Component Technology Corp by two pct, to 9.3 pct. It said it bought the 39,000 shares of stock at 5.30-6.875 dlrs a share for investment purposes.  
JP INDUSTRIES <JPI> CONFIRMS PROPOSAL. JP Industries Inc confirmed the announcement by Clevite Industries Inc <CLEV> that JP Industries has submitted a proposal to Clevite for the acquisition of the company at 13.50 dlrs per share in cash. John Psarouthakis, chairman and president of JP Industries, said that the company hopes to promptly negotiate an agreement with the special committee of Clevite's board. In February, JP Industries said it purchased Clevite's engine parts division. JP Industries said it is not aware of any other reason for activity in its stock.  
FOOTHILL <FGI>, SIERRITA IN STANDSTILL ACCORD. Foothill Group Inc said it reached a standstill agreement with Santa Cruz Resources Inc and its parent, Sierrita Resources Inc, that bars the companies from acquiring more than a 30 pct interest in Foothill, except through a business combination approved by Foothill's board. The company also said Santa Cruz has advised it that it owns 24.7 pct of Foothill's outstanding common stock. In addition, Santa Cruz and Sierrita have agreed to vote their shares in accordance with instructions from the Foothill board in connection with certain business combinations and certain anti-takeover matters, Foothill said. Foothill said the arrangement also bars Santa Cruz and Sierrita fron tendering any Foothill securities owned by them into any tender offer unless certain unspecified conditions are met.  
COLONIAL BANCGROUP <CLBGA> MAKES ACQUISITION. Colonial BancGroup said it has signed letter of intent to acquire Community Bank and Trust of Hartselle, Ala., with assets of 26 mln dlrs, for undisclosed terms, subject to approval by regulatory authorities and Community Bank shareholders. Completion is expected within the next year, it said.  
TAFT BROADCASTING <TFB> COMPLETES STATION SALE. TVX Broadcast Group Inc <TVXG> said it has completed the previously-announced purchase of five Taft television stations. Last week, TVX said the sale, which was scheduled to close then, had been delayed. Taft said the purchase price was 240 mln dlrs, as previously announced. The price is subject to final adjustments, Taft said. Taft did not indicate the size of the gain, if any, it would post on the sale. It said the stations are WTAF-Philadelphia, WDCA-Washington, WCIX-Miami, KTXA-Dallas and KTXH-Houston.  
PROTECTIVE LIFE <PROT> IN ACQUISITION. Protective Life Corp said it has signed a letter of intent to assume <Liberty Life Insurance Co's> group insurance on July 1, subject to regulatory approvals. Terms were not disclosed.  
<EMCOR> COMPLETES SALE OF STOCK TO INVESTORS. Emcore said it completed the sale of 4.1 mln dlrs of stock to Citicorp Venture Capital Ltd, Concord Ventures of Dillon Read and Co and private investors.  
WALL STREET STOCKS/UAL INC <UAL>. Takeover speculation continues to fuel heavy trading in UAL Inc, traders said. UAL rose 1-5/8 to 73-5/8 on volume of more than two mln shares, after trading with little upward movement earlier in the session. Traders said rumors, which began yesterday, added to speculation that the company would be the target of a takeover. They said it was believed Coniston Partners and the Pritzker family of Chicago were buying the stock. Coniston declined comment and the Pritzkers had no comment. Traders said there was speculation a bidder might appear, and also that real estate developer Donald Trump, who holds a stake in UAL, might participate in a takeover bid. UAL pilots said they would be willing to pay 4.5 billion dlrs, which includes debt, for the company's United Airlines unit.  
CLEVITE <CLEV> AMENDS RIGHTS PLAN. Clevite Industries Inc, which earlier received a 96 mln dlr takeover offer from J.P. Industries Inc <JPI>, said it amended its Shareholder Rights Plan so that certain provisions of the plan cannot occur until the board determines that it is in the best interests of the company and stockholders. The plan, adopted in December 1986, permits Clevite to issue shares at half price to existing stockholders and allows stockholders to buy shares of an unfriendly bidder at half price. Clevite said the amendments by its board effectively mean that the so-called flip-in and flip-over provisions of its rights plan can only be triggered by affirmative board approval. The company said it acted inview of the proposed acquisition and because certain debt restrictions could block its ability to redeem the rights.  
NATIONAL BEVERAGE TO ACQUIRE FAYGO BEVERAGES. <National Beverage Corp> said it agreed to acquire <Faygo Beverages Inc> for an undisclosed amount of cash. Faygo has revenues in excess of of 100 mln dlrs, National Beverage said.  
FLUOROCARBON <FCBN> BUYS EATON <ETN> DIVISION. Fluorocarbon Co said it signed a definitive agreement to acquire Eaton Corp's Industrial Polymer division for an undisclosed price. The polymer division, based in Aurora, Ohio, had 1986 sales of 86 mln dlrs, Fluorocarbon also said.  
HAWAIIAN ELECTRIC <HE> TO BUY HAWAIIAN INSURANCE. Hawaiian Electric Industries said it has entered a letter of intent to buy the Hawaiian Insurance Companies. The transaction is subject to a definitive agreement, and government and board approvals. The Hawaiian Insurance Companies ad assets at the end of 1986 of 137.4 mln dlrs and earned premiums of 46.1 mln dlrs. Hawaiian Electric said it plans to operate the comapny, which has 226 employees, with current management.  
DISNEY FAMILY MAKES BID FOR HOLLY SUGAR <HLY>. The Roy Disney family disclosed in a filing with the Securities and Exchange Commission that it made a bid to acquire Holly Sugar Corp for a package of cash and securities. Shamrock Holdings of California Inc, a Disney family company, said it submitted the bid on April 8 to Salomon Brothers Inc, Holly Sugar's investment banker. The offer was for 45 dlrs in cash, securities with a face value of 70 dlrs, and a "contingent payment certificate" that would pay out as much as 70 dlrs over a 20-year period for each share of Holly Sugar outstanding. The Disney family already holds 101,300 Holly Sugar shares or 9.0 pct of the total outstanding following purchases of 12,500 shares March 13-April 17, Shamrock told the SEC. Shamrock said it had asked for certain information about Holly Sugar's financial condition but had been turned down. It said its offer was therefore subject to further discussions. "Once we have had an opportunity to complete our due diligence evaluation of the company, including inspections of certain facilities and meetings with key management personnel, we would be prepared to negotiate all aspects of our proposal, including price," it said in its April 8 letter. REUTER^M  
C.O.M.B. <CMCO> MAKES ACQUISITION. C.O.M.B. Co said it acquired for 8.7 mln dlrs the principal assets of National Tech Industries Inc and Telkon Corp. The companies are engaged in servicing, sales and telemarketing of consumer electronic merchandise.  
CENTEL <CNT> COMPLETES ACQUISITION. Centel Corp said it completed the acquisition of Welbac Cable Television Corp, which serves more than 2,500 cable television subscribers in east central Michigan. Terms were not disclosed. With the addition of Welbac customers, Centel Cable Television Co of Michigan serves more than 83,000 customers. Overall, Centel has nearly 495,000 customers in seven states.  
INTERNATIONAL AMERICAN <HOME> TO ACQUIRE COS. International American Homes Inc said it entered into a conditional contract to acquire the <Maione-Hirschberg Cos Inc> and affiliated entitles for 19 mln dlrs. International American, whose stock was halted on Nasdaq earlier, said the purchase price is payable 12 mln dlrs in cash and the balance in its own common shares. Selling shareholders may earn an additional amount up to a maximum of eight mln dlrs payable in cash based on the future performance of the companies acquired during the three years ending March 31, 1990, International said. The acquisition is subject to certain conditions, such as satisfactory results of due diligence investigations, the company said.  
WINN ENTERPRISES <WNN> UNIT SELLS DAIRY. Winn Enterprises' Knudsen Foods Inc said it entered an agreement to sell its Hawaiian dairy operations to Foremost Foods Inc for 13 mln dlrs cash. The company said the purchase price is subject to adjustment and the entire transaction is subject to approval by the U.S. Bankruptcy Court for the Central District of California.  
NATIONAL BEVERAGE TO ACQUIRE FAYGO. <National Beverage Corp> said it agreed to acquire privately held Faygo Beverages Inc for an undisclosed amount of cash. The company said Detroit-based Faygo, a soft drink maker, has annual revenues of more than 100 mln dlrs. National Beverage, which is also privately held, owns and bottles Shasta Beverages, Spree All Natural Beverages and private label brands in its 11 bottling facilities in the United States.  
FUNDAMENTAL BROKERS BUYS PART OF MKI BROKERS. Fundamental Brokers Institutional Associates, a leading inter-dealer broker in U.S. government securities, said it has agreed to acquire certain assets of MKI Government Brokers Inc for undisclosed terms. Acquisition documents have been signed and are being held in escrow pending the receipt of certain consents, it said. In conjunction with the sale of assets, MKI has ceased brokering treasury bills, notes and bonds, Fundamental said. Industry sources told Reuters yesterday that Fundamental was close to acquiring the government securities brokerage division of MKI, a major broker of corporate bonds. Fundamental said it intends to use the facilities formerly used by MKI to provide a new block brokering service in the most active Treasury issues. By separating the execution of wholesale trades from the heavy volume of smaller lots, large-scale transactions will be facilitated, the company said. "The new system is expected to substantially enhance the liquidity and effiency of markets," Fundamental said. The wholesale brokering service will begin on or around April 20.  
NATIONAL HERITAGE <NHER> BUYS MANAGEMENT FIRM. National Heritage Inc said it acquired the assets of Chartham Management Corp of Salem, Ore. Terms were not disclosed. The assets acquired will be used to form a new divisional office serving the northwest, the nursing home operator said. The newly acquired Salem operation has management responsibility for about 2,500 beds in 28 nursing homes in seven states. Southmark Corp <SM>, which owns 80 pct of National Heritage, recently agreed to acquire the 28 facilities. National is the manager of nursing home properties owned by Southmark.  
OHIO MATTRESS <OMT> BUYS SEALY OF MICHIGAN. Ohio Mattress Co said that its Ohio-Sealy Mattress Manufacturing Co unit completed its previously announced acquisition of Sealy Mattress Co of Michigan Inc. In addition, the company said Sealy Inc, of which its owns 82 pct, redeemed the outstanding Sealy stock held by Michigan Sealy, thus increasing the company's stake in Sealy to 93 pct.  
NAPCO <NPCO> MANAGEMENT CANNOT RAISE FUNDING. Napco International Inc said it has suspended its plan to sell its international business to a group of that business' top managers because the group has failed to obtain satisfactory financing. The company also said it still intends to pursue a new corporate direction, and is exploring acquisition alternatives.  
MCDONNELL DOUGLAS <MD> BUYS COMPUTER FIRM. McDonnell Douglas Corp said it acquired Frampton Computer Services Ltd, a British software company that is also known as Isis. Terms of the acquisition were not disclosed. Based in Bristol, England, Isis employs 65 workers and has annual revenues of about five mln dlrs, McDonnell Douglas said. The company added that Isis will operate as part of McDonnell Douglas Information Systems International.  
BEVIS <BEVI> RECEIVES TAKEOVER INQUIRIES. Bevis Industries Inc, which has been seeking to be acquired, said it recently received inquiries concerning the purchase of the company. The company did not identify the parties that made the inquiries, but it said they had been referred to its investment bankers, Tucker, Anthony and R.L. Day Inc, for study. On March 18, the company said it engaged Tucker, Anthony to seek purchasers of its operating units, Greenville Tube Corp and MD Pneumatics Inc.  
JACOR <JCOR> TO BUY TWO DENVER RADIO STATIONS. Jacor Communications Inc said it agreed to buy two Denver radio stations from A.H. Belo Corp <BLC> for 24 mln dlrs in cash and notes. Jacor said the two stations are KOA-AM and KOAQ-FM. The acquisitions must be approved by the Federal Communications Commission, Jacor added.  
POLYCAST <PTCC> REDUCES SPARTECH <SPTN> STAKE. Polycast Technology Corp told the Securities and Exchange Commission it sold off 119,800 of its Spartech Corp common shares, reducing its stake in Spartech to 30,000 shares or 1.2 pct of the total outstanding. Polycast said it made the sales April 6-8 in the over-the-counter market. It gave no reason for the sales.  
HOSPITAL CORP SAYS IT RECEIVED 47 DLR A SHARE OFFER FROM INVESTOR GROUP.  HOSPITAL CORP SAYS IT RECEIVED 47 DLR A SHARE OFFER FROM INVESTOR GROUP  
GREAT AMERICAN MGMT<GAMI> HAS ATCOR<ATCO> STAKE. Great American Management and Investment Inc told the Securities and Exchange Commission it acquired a 7.7 pct stake in Atcor Inc. Great American said it bought the stake for investment. It added that it has also considered--but not yet decided--to buy additional Atcor shares, either in the open market, in private transactions, through a tender offer or otherwise. Great American said it paid about 6.1 mln dlrs for its 462,400 Atcor shares. It said its most recent purchases included 191,400 shares bought March 18-April 6.  
FIRM HAS 14.8 PCT OF DECISION/CAPITAL FUND<DCF>. Gabelli Group Inc said it and two subsidiaries held a total of 295,800 Decision/Capital Fund Inc shares or 14.8 pct of the total outstanding. It said the shares were held on behalf of investment clients and it said it had no intention of seeking control of the fund. Gabelli said its most recent purchases of Decision/Capital Fund stock included 95,800 shares bought April 3-6 on the Philadelphia Stock Exchange. Gabelli is an investment firm headquartered in New York City. Its Gabelli and Co subsidiary is a brokerage firm.  
PARTNERSHIP BUYS IPCO <IHS> STAKE OF 6.8 PCT. MP Co, a New York investment partnership, told the Securities and Exchange Commission it bought a 6.8 pct stake in IPCO Corp common stock. The partnership said it acquired 346,600 IPCO shares, paying 4.9 mln dlrs, because it believed the securities to be "an attractive investment opportunity." It said it planned to regularly review its investment and may in the future recommend business strategies or an extraordinary corporate transaction such as a merger, reorganization, liquidation or asset sale. The partnership is controlled by Marcus Schloss and Co Inc, a New York brokerage firm, and Prime Medical Products Inc, a Greenwood, S.C., medical supplies firm.  
CADILLAC FAIRVIEW SAYS IT HAS RECEIVED SOME ACQUISITION PROPOSALS.  CADILLAC FAIRVIEW SAYS IT HAS RECEIVED SOME ACQUISITION PROPOSALS  
CADILLAC FAIRVIEW SAYS IT RECEIVED TAKEOVER BIDS. <Cadillac Fairview Corp Ltd> said it received proposals to acquire the company, following its announcement last August that it had retained investment dealers to solicit offers for all outstanding common shares. Cadillac Fairview said the offers are subject to clarification and negotiation and offered no further details.  
WINTERHALTER <WNTLC> HOLDERS OKAY TAKEOVER. Winterhalter Inc said its shareholders approved the 525,000 dlr acquisition of Winterhalter by Interface Systems Inc <INTF>. The acquisition would be for 15 cts per Winterhalter share.  
KUWAIT INCREASES STAKE IN SIME DARBY. The Kuwait Investment Office (KIO) has increased its stake in <Sime Darby Bhd> to 63.72 mln shares, representing 6.88 pct of Sime Darby's paid-up capital, from 60.7 mln shares, Malayan Banking Bhd <MBKM.SI> said. Since last November, KIO has been aggressively in the open market buying shares in Sime Darby, a major corporation with interests in insurance, property development, plantations and manufacturing. The shares will be registered in the name of Malayan Banking subsidiary Mayban (Nominees) Sdn Bhd, with KIO as the beneficial owner.  
WESTERN MINING SELLS ACM STAKE. Western Mining Corp Holdings Ltd <WMNG.S> (WMC) said it sold its entire holding of 22.13 mln shares in the gold mining company <Australian Consolidated Minerals Ltd> (ACM). WMC gave no details, but stockbrokers said the sale was made at eight dlrs a share on Friday to a number of U.S., European and Australian investors through WMC's usual brokers. The company purchased the 19.9 pct parcel in early March from Amax Inc <AMX.N> at 6.32 dlrs a share ahead of a one-for-three bonus issue when Amax sold its entire 47 pct stake in ACM to a number of local companies.  
OFFER FOR DOME MAY SHORT-CIRCUIT ITS DEBT TALKS. A 3.22 billion dlr offer for Dome Petroleum Ltd <DMP.MO> by TransCanada Pipelines Ltd <TRP.TO> may short-circuit Dome's restructuring plan and open the door for more takeover bids, oil analysts said. Dome is trying to get approval for a plan to refinance debt of more than 4.5 billion dlrs by July 1, 1987, when an interim debt plan that allowed the Canadian oil and gas firm to defer substantial payments to creditors will expire. Analysts said TransCanada's bid signals Dome's debtholders that an alternative exists to Dome's debt plan. Dome announced its plan to 56 major creditors as well as public noteholders in March after several months of delicate negotiations. TransCanada's proposal "amounts to a quasi debt restructuring," oil analyst Doug Gowland of Brown Baldwin Nisker Ltd said from Toronto. Calgary-based Dome's restructuring plan would allow creditors to convert debt to common shares under a formula yet to be negotiated. Payments on remaining debt would be linked to cash flow generated by assets pledged against the debt. "The weakness of the whole debt-refinancing proposal is that even with approval of creditors, there is no assurance that Dome will in fact be able to repay all of its debt obligations," said Wilf Gobert, an oil analyst for Peters and Co Ltd in Calgary. TransCanada's announcement came as a surprise since Dome was waiting for responses from creditors on its proposed refinancing packages, Gobert said. The TransCanada proposal could open the bidding for Dome since other potential buyers were probably waiting for lenders to agree to a restructuring, he added. "I would think that the debtholders would want to entertain any and all offers (for Dome)," Gobert said. Dome spokesman David Annesley said in New York that TransCanada's announcement could be seen as an attempt to fix the bidding price for Dome and an effort to preclude other possible buyers from making an offer. "By drawing attention to us in our discussions, it means that others may be a little reluctant to come forward," he said. Dome does not consider TransCanada's proposal a formal offer because the pipeline utility's announcement breached a confidential agreement between the two companies, he said. Dome responded to the statement by suspending discussions with TransCanada in order to pursue talks with other unidentified parties. However, Dome said its management and financial advisers would evaluate all proposals, including TransCanada's. Gowland said TransCanada's offer is probably a fair price for the company's 36.1 mln acres of oil and gas land holdings. However, he said not enough financial details are known about Dome's debt restructuring to compare the value of TransCanada's proposed offer.  
ROTHMANS DENIES SHARE SALE SPECULATION. <Rothmans Holdings (Tobacco) Ltd> said in a sttement there was "no foundation" to press speculation that it would sell its stake in Rothmans International Plc <ROT.L> to Philip Morris Inc <MO.N>, or that it would buy Morris' stake. In the 1986 report, Rothmans International said RHT, which is controlled by <Rupert Foundation SA>, owned 18.25 mln ordinary and 64.37 mln B ordinary shares, or 99.9 pct and 26.1 pct respectively. Morris owns 79.8 mln B ordinary shares, or 32.4 pct. Rothmans B shares, which firmed on the speculation to close at 273p from 241p on Friday, eased to 245.5p at 0838 GMT.  
WILLIAMS DETAILS ACCEPTANCES OF NORCROS OFFER. <Williams Holdings Plc> said that it had received acceptances for its offer for Norcros Plc <NCRO.L> from the holders of 233,448 Norcros ordinary shares, or 0.18 pct, and 180,240 preference shares, or 8.19 pct. Before the 568 mln stg contested bid was launched last month, Williams held 850,000 ordinary shares, or 0.67 pct and since then it had acquired options to buy a further 1.99 mln or 1.58 pct. The offer has been extended to April 15. Norcros shares eased 26p to 410p on the announcement while Williams fell to 767p from 785p.  
HEPWORTH SELLS U.S. UNIT TO GLOBE MACHINE. Hepworth Ceramic Holdings Plc <HEPC.L> said it had agreed to sell its <Western Plastics Corp> unit to <Globe Machine Manufacturing Co> for 16.25 mln dlrs cash. Western, which makes polystyrene foam and container products, has net assets of 19.3 mln dlrs and reported a 1986 pre-tax profit of 0.9 mln. The proceeds of the sale would be used to reduce borrowings and develop activities in the U.K. Hepworth shares eased 0.5p on the announcement to 227.5p.  
BOND CORP TO ACQUIRE 80 PCT OF MERLIN PETE. Bond Corp Holdings Ltd <BONA.S> said it has agreed to acquire an 80 pct stake in <Merlin International Petroleum Corp> from <Crowley Maritime Corp> for 90.8 mln U.S. Dlrs. Of this total, 7.8 mln dlrs is due on exchange of contracts on April 30 and 69 mln on July 7, subject to any regulatory approvals being obtained, Bond said in a statement. The balance of 14 mln dlrs will be paid as required by Merlin for its exploration and production commitments, it said. Bond said Merlin has a 6.25 pct working interest plus a 2.5 pct reversionary interest in the Papua New Guinea permit, PPL-17, the site of the Iagifu oil discovery. Merlin also has a 12.5 pct stake in the adjacent Papuan Basin permit, PPL-18, which contains the Juha gas and condensate discovery. In addition to Papua New Guinea, Merlin has petroleum exploration and production interests in the U.S., Bond added.  
BLUE ARROW TO BUY U.S. RICHARDS COMPANIES. <Blue Arrow Plc> said it had agreed terms to acquire a group of U.S. Companies collectively known as the <Richards Companies>, which specialise in executive recruitment and management consultancy on personnel matters. The total consideration will be 29 mln U.S. Dlrs of which 50 pct will be payable in cash and 50 pct by the issue of 1.36 mln new ordinary shares in Blue Arrow. The Richard Companies made a pre-tax profit of 3.6 mln dlrs in the year to end-1986, on turnover of 7.1 mln dlrs with net tangible assets at the end of 1986 of 3.4 mln dlrs. Blue Arrow shares were trading 9p lower at 670 this morning.  
BORG-WARNER AGREES TO BUYOUT BY MERRILL LYNCH FIRM. Borg-Warner <BOR> Corp, facing an unwanted offer from GAF Corp <GAF>, agreed to a 4.23 billion dlr buyout offer from a company to be formed by <Merrill Lynch Capital Partners Inc>. Borg-Warner and Merrill said yesterday they entered a definitive merger agreement, under which a subsidiary of the new company, <AV Holdings Corp>, will begin a 48.50 dlr per share cash tender offer today for 77.6 mln shares or 89 pct of Borg-Warner common stock. The offer will be followed by a merger in which each remaining share will be converted into 19.75 dlrs cash and 54.25 dlrs principal amount of AV Holdings junior subordinated discount debentures. As a result of the merger, Borg-Warner will become a wholly owned subsidiary of AV Holdings. A Borg-Warner spokeswoman said members of management do not plan to participate in the transaction, but they will retain their positions with the company. A spokesman for GAF was unavailable for comment. GAF holds 19.9 pct of Borg-Warner's shares. GAF had said it would offer 46 dlrs per share. Borg-Warner's spokeswoman said the company still plans to sell its financial services unit, which includes Wells Fargo security guards, and the Chilton Corp, a credit rating service. Borg-Warner has been the focus of takeover speculation for about a year. Corporate raider Irwin Jacobs last year proposed a takeover of the firm and until recently held 10 pct of the stock. Following the GAF offer, analysts had calculated breakup values for the company in the low 50 dlrs per share range and speculated an offer would have to be sweetened. In its statement, Borg-Warner said its board endorsed the Merrill offer and it recommended that shareholders tender their shares. The board received opinions on the offer from its advisors, First Boston Corp and Goldman, Sachs and Co. James Burke, president of Merrill Lynch Capital Partners, said, "We are very pleased to have entered into this transaction with Borg-Warner. We are looking forward to working with the employees of Borg-Warner and to Borg-Warner maintaining its strong presence in the Chicago community." Merrill Lynch will be the dealer-manager for the offer, which expires at midnight EDT May 8 (0400 GMT, May 9), subject to conditions, including the completion of necessary financing arrangements. The offer is also subject to a minimum 44.25 mln shares, or 51 pct of the outstanding shares, being tendered. Merrill Lynch and certain affiliates have committed to provide 200 mln dlrs in AV Holdings equity and 870 mln in subordinated financing and forward underwriting commitments. Merrill Lynch said that following discussions with commercial banks it is confident it can obtain the rest of the financing required to complete the transaction. The junior subordinated discount debentures to be issued in the merger will carry a 13 pct coupon and will begin paying cash interest after five years. The debentures will be redeemable at the company's option for the first six years at 105 pct, during the seventh year at 102.5 pct and after that at 100 pct of the principal amount. The junior subordinated discount debentures have a maturity of 20 years and are entitled to a sinking fund commencing in the 16th year designed to retire 60 pct of the issue before maturity. Borg-Warner will also redeem all of its outstanding 4.50 dlrs cumulative preferred stock, series A, for 100 dlrs per share. Holders who wish to participate in the offer must first convert their preferred stock into Borg-Warner common stock. The board of Borg-Warner has also taken steps to redeem its poison pill or share purchase rights for five cents per right, effective immediately.  
HILLSDOWN BUYS BEDDING COMPANIES FOR 23 MLN DLRS. Hillsdown Holdings Plc <HLDN.L> said its Christie-Tyler Ltd unit would buy the European bedding making interests of Simmons Co U.S.A., Owned by Gulf and Western Industries Inc USA <GW>, for 23 mln dlrs. The acquisitions include <Sleepeeze Ltd> in the U.K., <Compagnie Continentale Simmons SA> in France and <Compagnia Italiana Simmons SpA> in Italy. In 1986 the three businesses made pre-tax profit of around 2.5 mln stg on sales of 39 mln stg. Net assets being acquired come to around nine mln stg. Hillsdown shares were unchanged at 266p.  
TAKEOVER BATTLE FOR DOME PETROLEUM BEGINS. A takeover battle began today for debt-burdened Dome Petroleum Ltd <DMP.MO> as TransCanada PipeLines Ltd <TRP.TO> announced a 4.3 billion dlr offer and Dome said it is continuing talks with other possible buyers. Companies mentioned in market speculation as potential buyers for Dome include Imperial Oil Ltd <IMO.A> which is 70 pct owned by Exxon Corp <XON.N>, <PanCanadian Petroleum Ltd> which is 87 pct owned by the conglomerate Canadian Pacific Ltd <CP.N> and British Petroleum Co Plc <BP.L>. Along with the TransCanada offer, Dome has had another proposal from "a substantial company" and discussions with a third company which could lead to an offer, Dome said in a statement. The statement confirmed Dome received TransCanada's bid, but did not identify the companies involved in talks. TransCanada, Canada's largest natural gas pipeline operator, said it is offering Dome a package of cash, common and preferred shares, and shares in a new subsidiary which would own and operate Dome's assets. TransCanada said the offer is to Dome management, not to shareholders. Dome has massive oil and gas landholdings in Canada, totalling 36.1 mln acres of which 7.4 mln have been developed. It also has tax credits worth about 2.5 billion dlrs. Dome's statement said the TransCanada announcement "violated the terms and spirit of a confidentiality agreement entered into with prospective purchasers" and was apparently timed to prevent Dome from considering other proposals. It said the TransCanada bid "seems to require favourable and substantial taxation concessions from the federal and provincial governments." But Dome added that its management and financial advisers will evaluate all proposals. TransCanada chief financial officer H. Neil Nichols said he was surprised at the vehemence of Dome's statement and denied that TransCanada was trying to usurp other bids. "I find (Dome's statement) very bothersome. Once the board made the decision to authorise the proposal, it had a legal obligation to announce it," he said. Nichols said he did not know the identity of the other bidders, or the terms of other offers. Dome common shares closed at 1.13 dlrs on Friday on the Toronto Stock Exchange. The preferred class A stock closed at 5.00 dlrs. Common stock traded as high as 25.00 dlrs in 1981.  
COMPUTER ASSOCIATES <CA> STARTS BPI <BPII> BID. Computer Associates International Inc said it has started its previously-announced 1.92 dlr per share tender offer for all shares of BPI Systems Inc. In a newspaper advertisement, the company said the offer, which has been approved by the BPI board and is to be followed by a merger at the same price, is conditioned on receipt of at least 1,813,742 shares.  The offer and withdrawal rights expire May 15 unless extended. In addition to shares sought in the tender, shareholders of BPI owning 1,951,720 shares or 34.6 pct have agreed to sell their shares to Computer Associates for the tender price.  
CRAZY EDDIE <CRZY> MAY MAKE ACQUISITION. Crazy Eddie Inc said it is negotiating for the possible acquisition of Benel Distributors Ltd, which operates Crazy Eddie Record and Tape Asylums in all Crazy Eddie stores. It said the acquisition would probably also include affiliate Disc-o-Mat Inc, which operates a number of record and tape stores in the New York metropolitan area. Other details were not disclosed.  
CRAZY EDDIE <CRZY> SETS DEFENSIVE RIGHTS. Crazy Eddie Inc said its board has adopted a defensive shareholder rights plan and said it has received "friendly inquiries" on its acquisition. It said under the plan, shareholdrs of record as of April 21 will receive a right to purchase under certain circumstances at a price of 42 dlrs 0.01 preferred share for each common share held.  The rights will expire April Nine. The company said the rights would be exercisable 20 business days after a party were to acquire 20 pct or more of Crazy Eddie common stock or announce a tender or exchange offer that would result in ownership of 30 pct or more. Crazy Eddie said if a party owning 20 pct or more of its stock were to merge into it or if a party were to acquire 40 pct or more of Crazy Eddie stock, right holders other than the acquiring party would be entitled to acquire common shares or other securities or assets with a market value equal to twice the rights' exercise price. If after a party acquired 20 pct or more of its stock Crazy Eddie were acquired or 50 pct of its earnings power or assets sold, rightholders other than the acquirer would be entitled to buy shares of the acquirer's common stock worth twice the rights' exercise price, the company said. Crazy Eddie said if a party were to acquire 30 pct or more of its common stock and then fail to acquire Crazy Eddie within 180 days thereafter, rightholders would be entitled to exchange their Crazy Eddie common stock for subordinated notes of Crazy Eddie maturing either one year or, above a certain dollar limt, five years after issuance. Crazy Eddie said adoption of the plan is not in response to any known effort to acquire control of it.  But the company said it has become aware of some "possible accumulations" of its stock has has received some "friendly inquiries."  
OFFER FOR DOME MAY SHORT-CIRCUIT ITS DEBT TALKS. A 3.22 billion dlr offer for Dome Petroleum Ltd <DMP.MO> by TransCanada Pipelines Ltd <TRP.TO> may short-circuit Dome's restructuring plan and open the door for more takeover bids, oil analysts said. Dome is trying to get approval for a plan to refinance debt of more than 4.5 billion dlrs by July 1, 1987, when an interim debt plan that allowed the Canadian oil and gas firm to defer substantial payments to creditors will expire. Analysts said TransCanada's bid signals Dome's debtholders that an alternative exists to Dome's debt plan. Dome announced its plan to 56 major creditors as well as public noteholders in March after several months of delicate negotiations. TransCanada's proposal "amounts to a quasi debt restructuring," oil analyst Doug Gowland of Brown Baldwin Nisker Ltd said from Toronto. Calgary-based Dome's restructuring plan would allow creditors to convert debt to common shares under a formula yet to be negotiated. Payments on remaining debt would be linked to cash flow generated by assets pledged against the debt. "The weakness of the whole debt-refinancing proposal is that even with approval of creditors, there is no assurance that Dome will in fact be able to repay all of its debt obligations," said Wilf Gobert, an oil analyst for Peters and Co Ltd in Calgary. TransCanada's announcement came as a surprise since Dome was waiting for responses from creditors on its proposed refinancing packages, Gobert said. The TransCanada proposal could open the bidding for Dome since other potential buyers were probably waiting for lenders to agree to a restructuring, he added. "I would think that the debtholders would want to entertain any and all offers (for Dome)," Gobert said. Dome spokesman David Annesley said in New York that TransCanada's announcement could be seen as an attempt to fix the bidding price for Dome and an effort to preclude other possible buyers from making an offer. "By drawing attention to us in our discussions, it means that others may be a little reluctant to come forward," he said. Dome does not consider TransCanada's proposal a formal offer because the pipeline utility's announcement breached a confidential agreement between the two companies, he said. Dome responded to the statement by suspending discussions with TransCanada in order to pursue talks with other unidentified parties. However, Dome said its management and financial advisers would evaluate all proposals, including TransCanada's. Gowland said TransCanada's offer is probably a fair price for the company's 36.1 mln acres of oil and gas land holdings. However, he said not enough financial details are known about Dome's debt restructuring to compare the value of TransCanada's proposed offer.  
SOSNOFF RAISES BID FOR CAESARS WORLD <CAW>. Investor Martin T. Sosnoff said he has raised his offer for Caesars World Inc shares to 32 dlrs each from 28 dlrs and has reduced the number of shares he is seeking to 29.1 mln from all those not already owned. In a newspaper advertisement, Sosnoff said the bid by his MTS Acquisition Corp, withdrawal rights and the proration period will now expire June 19 unless extended. The offer had been scheduled to expire May 15. In late March, Sosnoff said he had received a "negligible" number of shares in response to the offer, which had been rejected by Caesars as inadequate. Sosnoff already owns about four mln of Caesars' 30 mln common shares now outstanding, or a 13.3 pct interest on a primary basis. Last week, Caesars' board approved a recapitalization plan as an alternative to the Sosnoff offer under which shareholders would receive a special dividend of 25 dlrs per share, subject to approval by shareholders at a special meeting to be held in June. The company planned to borrow 200 mln dlrs and sell 800 mln dlrs in debt to finance the payout. Sosnoff said in the newspaper advertisement that the amended offer is conditioned on receipt of enough shares to give him a majority interest on a fully diluted basis and on the arrangement of financing, as well as to approvals by New Jersey and Nevada gaming authorities. He said the tender would be the first step in acquiring all of Caesars' shares and if successful would be followed by a merger transaction. Sosnoff said later in a statement that the 29.1 mln shares he is now seeking, together with the 4,217,675 shares he owns, would give him a 92.4 pct interest on a fully diluted basis. He said he still has received only a "negligible" number of shares in response to his tender. In a letter to Caesars' chairman Henry Gluck included in the statement, Sosnoff said Gluck had again refused, on April 8, to meet with him, even though he had said he was willing to increase the price of his offer. Sosnoff said the financing for the offer is almost fully in place. Sosnoff said PaineWebber Group Inc <PWJ> has now delivered to him commitments to purchase up to 475 mln dlrs of increasing dividend cumulative exchangeable preferred stock of MTS Holding Corp, an indirect parent corporation of MTS Acquisition. He said Marine Midland Banks Inc <MM>, which leads a syndicate that has provided commitments for a 500 mln dlr margin facility, believes it will be able to arrange for further commitments under the margin facility to advance up to an additional 25 mln dlrs that may be needed to permit the purchase of shares under the offer. Sosnoff said under the merger that would follow his tender, each of the 2,750,000 Caesars shares not covered by the offer, or 7.6 pct on a fully diluted basis, would be converted into Series A preferred stock valued at 32 dlrs per shareby an independent investment baking firm. He said "To the extent that fewer than 29,100,000 sdhares are purchased in the offer, the stockholders would receive a combination of cash and Series A preferred stock having a value of 32 dlrs per share of Caesars." Sosnoff said he believes terms of his offer are superior to Caesars' recapitalization. Sosnoff said he will be meeting this week with gaming officials in Nevada in an effort to expedite the investigatory process required for regulatory approval, a process that it already underway in New Jersey. He said his offer has been extended based on the likely duration of the regulatory process. He said he intends to further extend the offer if the approval process is not completed by the expiration date.  
USAIR TO BUY 55 PCT OF 17.0 MLN PIEDMONT SHARES TENDERED.  USAIR TO BUY 55 PCT OF 17.0 MLN PIEDMONT SHARES TENDERED  
CORONA <ICR.TO> FAVORS ROYEX <RGM.TO> OFFER. International Corona Resources Ltd said its board of directors believes that terms of Royex Gold Mining Corp's previously announced offer are fair and reasonable, but it decided it will make no recommendation on the offer to its shareholders. Royex on March 31 offered to buy four mln Corona shares. For each Corona share it offered four dlrs cash, one series B share of Royex, one series C share of Royex and one share purchase warrant. It also bid for all Corona warrants expiring Aug 31, 1987.  
S.ATLANTIC <SOAF.O>, INDEPENDENCE <INHO.O> MERGE. South Atlantic Financial Corp said it has agreed in principle to merge with Independence Holding Co into a new company to be called SAFCO International Ltd. It said each South Atlantic share would be exchanged for one SAFCO share and each Independence share for 2.822 SAFCO shares. Independence now owns about 40 pct of South Atlantic's 9.8 mln primary common shares. South Atlantic said said its chairman and chief executive officer Sheldon S. Gordon would have the same posts with SAFCO and Independence president Ronald G. Strackbein would be president of SAFCO. The company said the transaction is subject to execution of definitive agreements, the receipt of fairness opinions from investment banks and approval by boards and shareholders of both companies.  It said proxy materials are expected to be maioled this quarter.   Both South Atlantic and Independence are insurance companies.  
P.H. GLATFELTER CO SAYS IT WILL BUY ECUSTA CORP FOR 149 MLN DLRS IN CASH.  P.H. GLATFELTER CO SAYS IT WILL BUY ECUSTA CORP FOR 149 MLN DLRS IN CASH  
USAIR <U> REPORTS FINAL PRORATION FACTOR. USAir Group Inc said, in announcing the final proration factor for its tender offer for Piedmont Aviation Inc <PIE>, that 17.0 mln shares, or 90 pct of the shares were validly tendered. USAir said it has purchased and will pay for 9.3 mln shares, representing about 55 pct of those tendered.  
P.H. GLATFELTER <GLT> ACQUIRING ECUSTA. P.H. Glatfelter Co said it has reached an agreement to acquire all the capital stock of <Ecusta Corp> for 149,177,857 dlrs in cash. Glatfelter, a printing and writing paper maker, said Ecusta operates an uncoded three sheet and light-weight specialty paper mill in Pisgah Forest, N.C. The mill produces and converts paper products used by the doemstic and foreign tobacco industry. Glatfelter said it expects to close the deal by May 31.  
BOSTON FIVE <BFCS.O>, NEWORLD <NWOR.O> TO MERGE. Boston Five Cents Savings Bank said it and Neworld Bank for Savings have agreed to merge, forming a new holding company, Boston Five Bancorp. Boston Five said the proposal calls for its holders to receive 1.163 shares of the new company's stock for each share now held and for Neworld Bank holders to recieve one share for each share held in a tax free exchange. Boston Five said the planned merger with Newworld Bank for Savings Will create the largest savings bank in Massachusetts and the third largest in New England with combined assets of 3.1 billion dlrs. Boston Five chairman Robert J. Spiller said "There is a natural fit between both banks. We consider this to be a merger of equals." Spiller will become Chairman of Boston Five Bancorp and Neworld president James M. Oates will be president and chief executive officer. Boston Five said its President, Peter J. Blampied, will become vice chairman and chief operating officer of the holding company. The board of the holding company will have an equal number of directors from each institution. "Unlike many recent combinations, this merger has no acquisition premium associated with it," Blampied said. Boston Five has assetsof 1.9 billion dlrs and 35 officers. Neworld has assets of 1.2 billion dlrs and 24 officers in Massachusetts. It also has a loan center in New Hampshire.  
BLUE ARROW TO ACQUIRE RICHARDS CONSULTANTS. Blue Arrow PLC said it signed an agreement to acquire Richards Consultants Ltd for 29 mln dlrs in cash and securities. Richards is a privately-owned New York-based executive recruitment firm. As part of the agreement, Blue Arrow said the four principal shareholders who manage Richards will enter into long-term service contracts with it. The agreement is subject to approval of Blue Arrow shareholders.  
DILLARD DEPARTMENT STORES AGREES TO BUY TWO ALLIED STORES UNITS FOR 255 MLN DLRS CASH.  DILLARD DEPARTMENT STORES AGREES TO BUY TWO ALLIED STORES UNITS FOR 255 MLN DLRS CASH  
PENTLAND TO REDUCE REEBOK <RBK> HOLDINGS. Pentland Industries PLC said it report a substantial capital gain from the sale of part of its holdings in Reebok International Limited, which will cut its stake in Reebok to 32.2 pct from 36.7 pct. It said Reebok filed a registration statement with the Securities and Exchange Commission for the offering of six mln shares of Reebok common. Reebok will sell three mln shares and Pentland will sell 1,404,866 shares, reducing its stake in Reebok to 18.1 mln from 19.5 mln shares. After the offering, Reebok will have 56.1 mln shares shares outstanding. Pentland said the amount of the capital gain from the sale depends on the offering price for the Reebok shares to be negotiated between it, Reebok, and the other selling stockholders who will offer about 1.6 mln shares of Reebok common, and the underwriters. Pentland said proceeds from the offering will be used by Reebok to retire bank debt incurred in its acquisition of AVIA Group for about 180 mln dlrs. Is said that afterwards, Reebok will have bank credit lines available for general corporate purposes, including possible acquisitions. Reebok's stock was selling at 45-1/2, up 1/8. At that price, the 1.4 mln Reebok shares Pentland will sell are worth about 64 mln dlrs and the three mln shares Reebok will sell are worth about 136.5 mln dlrs. Pentland said it will use proceeds to fund growth and possible acquisitions. Pentland said 4,500,000 shares of Rebbok will be offered in the U.S. by a syndicate led by Kidder, Peabody and Co Inc and 1,500,000 shares will be offered outside the U.S. by an international syndicate led by Kidder. It said the U.S. underwriters have been granted an option to buy from certain selling stockholders up to an additional 900,000 shares to cover overallotments. Pentland said it has not chosen to participate in this over allotment. Pentland said that as soon as the date and price of the offering have been determined it will release further details. It said it expects the offering to close in May.  
ALLIED STORES <ALS> SELLS DILLARD <DDS> TWO UNITS. Dillard Department Stores Inc, based in Little Rock, Ark., and Allied Stores Corp jointly said they entered a definitive purchase agreement for the sale to Dillard of the Joske's and the Cain-Sloan divisions of Allied for 255 mln dlrs cash, subject to certain closing adjustments. The sale excludes certain real estate assets of Joske's and Cain-Sloan, which Allied estimates have an aggregate value of 30 mln dlrs based on current market conditions. Joske's has 26 stores in Texas and one in Arizona. Cain-Sloan has four stores in Nashville. Joske's is the largest unit Allied has slated for sale in its restructuring. Allied Stores Corp, a subsidiary of Campeau Corp, was acquired by acquired by the Canadian developer last year. Robert Campeau, chairman of Allied, said "this is a terrific start to our disposition program which is proceeding well ahead of schedule. This sale will fulfill the requirements under our bank agreements to sell certain assets by June 30 and give us additional flexibility in the disposal of the remaining divisions being sold." Allied Stores is required to pay 200 mln dlrs in bank debt by June 30. There had been some doubts on Wall Street that the company could meet the payment. A Campeau source said, "We believe this cash sale puts us in a very strong negotiating position to maximize the proceeds Allied can receive from its other divisions." "Allied was able to put itself in a position where it knows it will be able to meet the June 30 payment schedules," the source said. About 1.1 bilion dlrs in Allied assets had been targeted for sale by Dec. 31, 1988 to pay for the aquisition of Allied by Campeau. Allied will be taking bids for its other divisions. Targeted for sale are Bonwit Tellers, Garfinckel's, Dey's, Donaldson's, Herpolsheimer's, Heer's, Miller's, Miller and Rhoads, Pomeroy's, Catherine's, Plymouth Shops, and Jerry Leonard. The divisions provided 38.4 pct of Allied net sales and 11.8 pct of store profit in fiscal 1985.  
INVESTOR BOOSTS TRANS-LUX <TLX> STAKE. Investor Albert Kahn said in a statement that a group he heads increased its stake in Trans-Lux Corp to 8.9 pct from 8.1 pct on a fully diluted basis. Kahn said he indicated in a filing with the Securities and Exchange Commission that his group bought an additional 7,300 Trans-Lux common shares and 100,000 dlrs of nine pct convertible subordinated debentures due 2005, convertible into an additional 6,803 shares. Kahn said he is considering seeking representation on the Trans-Lux board and starting a proxy contest in connection with the upcoming annual meeting. Kahn also said he is seeking an examination of the Trans-Lux shareholder list and corporate books and records under Delaware law. Trans-Lux is a Connecticut concern that leases teleprinters and display units in brokerage offices, airports and other public places. Kahn is a Miami insurance executive and investor.  
GENERAL PARTNERS SELLS GENCORP <GY> STAKE. General Partners, a Texas partnership that recently ended its bid to take over GenCorp Inc, told the Securities and Exchange Commission it sold nearly all of its remaining 8.6 pct stake in the company. General Partners said it sold 1,930,500 shares of GenCorp on April 10 at 118.25 dlrs a share in an open market transaction on the New York Stock Exchange. It said the sale leaves it with 108 GenCorp common shares. The partnership, which includes Wagner and Brown of Midland Texas and Irvine, Calif.-based AFG Industries Inc, last week dropped its 100 dlr a share hostile tender offer.  
GAF <GAF> STUDYING BORG-WARNER <BOR> PLAN. GAF Corp is studying an agreement under which Merrill Lynch Capital Partners will take Borg-Warner Corp private in a 4.23 billion dlr transaction, a GAF spokesman said. The spokesman had no further comment. Analysts said there was speculation GAF would make a new offer for the Chicago-based plastics and automobile parts company. Borg-Warner's stock rose 7/8 to 49-1/4, above the Merrill Lynch 48.50 dlrs per share tender offer price. Merrill Lynch Capital Partners, a unit of Merrill Lynch and Co, is tendering for 89 pct of Borg-Warner and offering a package of cash and securities for the balance of the shares. GAF had offered 46 dlrs per share previously. It holds 19.9 pct of Borg-Warner's stock.  
MCGRAW-HILL <MHP> DIVESTS SOUTH AFRICAN UNIT. McGraw-Hill Inc said it has sold its McGraw-Hill Book Co South Africa Pty Ltd subsidiary to a local management group for an undisclosed amount of cash and halted the sale of all products and services to South Africa. The company said the divestiture follows a resolution of its board in February that cited increased political and social unrest within South Africa and the refusal of the South African government to abolish the apartheid system.  
OAK ONDUSTRIES <OAK> TO BUY ELECTRONICS FIRM. Oak Industries Inc said it agreed to buy the stock of Electronic Technologies Inc of New York for an undisclosed amount of cash. Electronic Technologies manufactures quartz crystal components, Oak said. It said the acquisition is part of its ongoing stategy to restructure its core businesses through cost reduction programs and the purchase of compatible companies.  
REVLON GROUP AGREES TO MERGE WITH MACANDREWS AND FORBES GROUP FOR 20.10 DLRS/SHR CASH.  REVLON GROUP AGREES TO MERGE WITH MACANDREWS AND FORBES GROUP FOR 20.10 DLRS/SHR CASH  
(CORRECTED)-CRAZY EDDIE <CRZY.O> SETS RIGHTS. Crazy Eddie Inc said its board has adopted a defensive shareholder rights plan and said it has reacived inquiries on a friendly merger. It said under the plan, shareholders of record as of April 21 will receive a right to purchase under certain circumstances at a price of 42 dlrs 0.01 preferred share for each common share held.  The rights expire April 9, 1997. The company said the rights would be exercisable 20 business days after a party were to acquire 20 pct or more of Crazy Eddie common stock or announce a bid for 30 pct or more. Adds dropped year of rights expiration.  
RESDEL <RSDL.O> TO MERGE WITH SAN/BAR <SBAR.O>. Resdel Industries said it and San/Bar Corp has agreed to merge San/Bar into Resdel. The arrangement calls for San/Bar to spin-off assets of its Break-Free division to shareholders then exchange its own shares for Resdel stock at a ratio of one Resdel share for each San/Bar share held, Resdel said.  
MIDLANTIC <MIDL.O> TO ACQUIRE COUNTY BANCORP. Midlantic Corp said it agreed to acquire County Bancorp for about 23 mln dlrs in an agreement calling for County Trust Co, a County Bancorp subsidiary, to merge into Midlantic National Bank/North. Midlantic said it will pay 83.73 dlrs a share in cash, or 2.36 times County Bancorp's March 31 book value, for each of County's about 276,0000 shares outstanding. It said it received an option from three principal shareholders for 40 pct of County's outstanding. The acquisition is expected in the third quarter of 1987 and is subject to regulatory and shareholder approvals.  
GROUP RAISES SCANDINAVIA FUND <SCF> STAKE. A shareholder group consisting of foreign investment firms and investors said it raised its stake in Scandinavia Fund Inc to 2,607,900 shares, or 40.0 pct of the total outstanding from 2,309,700 shares, or 35.4 pct. In a filing with the Securities and Exchange Commission, the group also said it is considering an informal offer made by Scandinavia Fund President Bjorn Carlson on March 31 which would grant it representation on the company's board. The group includes VBI Corp, a Turks and Caicos Islands investment firm, and Ingemar Rydin Industritillbehor AB, a Swedish investment firm, and Erik Martin Vik, a Norwegian investor, and Vik's son, Alexander. The group said VBI and the elder Vik bought a combined 298,200 Scandinavia Fund common shares since March 13 at prices ranging from 9.500 to 10.000 dlrs a share.  
REVLON <REV> AND MACANDREWS AND FORBES TO MERGE. <MacAndrews and Forbes Group> and Revlon Group Inc <REV> said that they have entered into a definitive mergewr agreement where MacAndrews will acquire Revlon at 20.10 dlrs per common share in cash. MacAndrews said it increased its offer to purchase all Revlon common shares to 20.10 dlrs a share, from its April 1 offer of 18.50 dlrs a share. Following consummation of the offer, a unit of MacAndrews will merge into Revlon and each remaining share will be converted into the right to receive 20.10 dlrs per share in cash, the companies said. Revlon said its board of directors unanimously approved the merger agreement. MacAndrews and Revlon also said they have reached a settlement with the plaintiff in the pending litigation challenging acquisition of the shares by MacAnrews. The companies said the tender offer and withdrawal rights will expireon Tuesday April 28, unless extended. MacAndrews said it will promptly file revised tender offer material with the Securities and Exchange Commission. Drexel Burnham Lambert Inc is acting as dealer-manager for the offer, the companies said. Revlon currently has about 42 mln shares outstanding. The current offer price is about 782 mln dlrs, a company spokesman said, up from the previous offer of 720 mln dlrs. On April 1, MacAndrews and Forbes, owned by Ronald Perelman, offered 18.50 dlrs a share for the 63 pct of Revlon shares he did not already own. Since the offer was made over a dozen shareholder lawsuits were brought against Revlon alleging the original offer was too low. But, the companies said these lawsuits have been settled in the amended offer.  
REAL ESTATE FIRM CUTS INTERMAGNETICS<INMA> STAKE. Roland International Corp, a Coconut Grove, Fla., real estate development company, said it cut its stake in Intermagnetics General Corp to 308,400 shares, or 4.8 pct of the total outstanding, from 358,400 shares, or 5.6 pct. In a filing with the Securities and Exchange Commission, Roland said it sold 50,000 shares on Feb 4 at 5.13 dlrs each. As long as Roland's stake in Intermagnetics General is below five pct, it is not required to report any further dealings in the company's stock.  
DATAPRODUCTS <DPC> TO BUY IMAGING SOLUTIONS. Dataproducts Corp said it signed a letter of intent to acquire the Imaging Solutions Inc unit of Reliance Electric Co under undisclosed terms. This acquisition will give it all rights to proprietary solid and liquid ink technologies which had been developed by a joint venture operated by it and Exxon Corp <XON>, Dataproducts said. It said Imaging Solutions, formerly named Exxon Printing Systems Inc, had been a Reliance Electric Co subsidiary. But Reliance recently became an independent company as the result of a leveraged buyout from its former owner, Exxon.  
JANNOCK <JN.TO> ACQUIRES HALF-STAKE IN PRINTER. Jannock Ltd said its Jannock Imaging Co Ltd unit acquired a 50 pct stake in Arthurs-Jones Lithographing Ltd, of Toronto, for undisclosed terms. It said the acquisition would lift Jannock Imaging revenues to 50 mln dlrs this year. It did not specify Arthurs-Jones' 1986 revenues.  
ELECTROHOME <EL.X.TO> TO SELL UNIT. Electrohome Ltd said it agreed to sell certain assets of the computer service sector of its AABEX service division to Canadian General Electric Co Ltd <CGE.TO>. Terms were not disclosed. The closing date is expected to be May 1, 1987.  
LASER PHOTONICS INC <LAZR.O> CLOSES SALE. Laser Photonics Inc said it completed a previously announced sale of 615,385 shares, or 18 pct, of its common stock to a group of investors for one mln dlrs. A 400,000 dlrs loan made by the investors was repaid out of the proceeds, it said. It also said it restructured its board to include three members designated by the investors, including Pierre Schoenheimer, Roger Kirk and Leonard Lichter.  
AMSOUTH BANCORP <ASO> SETS EXCHANGE RATIO. AmSouth Bancorp said it will issue about 3,166,000 shares of stock to acquire First Tuskaloosa Corp. Under a previously announced merger agreement, Amsouth offered 66 dlrs a share in Amsouth stock for First Tuskaloosa. The company said First Tuskaloosa shareholders will receive 1.978825 shares of Amsouth stock for each First Tuskaloosa share held when the merger is effected April 17. First Tuskaloosa has assets of more than 425 mln dlrs. Amsouth's assets are about six billion dlrs.  
HADSON CORP <HADS.O> COMPLETES ACQUISITION. Hadson Corp said it completed the acquisition of 85 pct of the Seaxe Energy Corp's <SEAX.O> common stock for 182,415 shares of Hadson's stock. Seaxe is engaged in international oil and gas exploration and development primarily in the Paris basin of France.  
ARRAYS <ARAY> COMPLETES MERGER. Arrays Inc said it completed its merger with Haba Systems Inc. Terms of the merger called for each share of Arrays to be exchange for a share of Haba in a transaction valued at 4.1 mln dlrs, the company said. Both companies produce and market microcomputer software.  
CANADA STOCKS/DOME PETROLEUM LTD <DMP>. Dome Petroleum Ltd shares moved higher in the U.S. and Canada after TransCanada PipeLines Ltd <TRP> made a 4.3 billion Canadian dlr bid for Dome and Dome said it is in talks with two other unidentified companies. Market speculation is that the other two potential bidders are not Canadian companies and DuPont's <DD> Conoco and Atlantic Richfield Co <ARC> are mentioned as possibilities, Wilf Gobert of Peters and Co Ltd said. Dome rose 1/4 to 1-1/8 on the American Stock Exchange. TransCanada PipeLines was down 1/4 at 15-3/4 on the New York Stock Exchange. Dome was the most active stock on the Toronto exchange at 1.50 dlrs per share, up 37 cts. Gobert characterized the market action in Dome as "awfully optimistic" but said investors are hoping for a competing offer to the shareholders. TransCanada PipeLines' offer is to Dome management, not to shareholders. However, it proposes issuing new equity in a subsidiary that would operate Dome assets. Current Dome shareholders would own 20 pct of the new subsidiary.  
<CLARK COPY INTERNATIONAL> BUYS W. GERMAN STAKE. Clark Copy International Corp said it acquired a majority interest in Datagraph GMBH of Lich, West Germany. The acquisition was made through Clark Copy's majority owned subsidiary Interactive Computer Aids of Norway. No price was disclosed for the acquisition. Clark Copy said worldwide sales for Datagraph, which makes color graphics workstations, were 10 mln dlrs for the year ended Dec. 31, 1986.  
NOR-QUEST <NQRLF> MAKES BID FOR NORTHAIR <NRM.TO>. Nor-Quest Resources Inc said it will make a takeover offer to acquire all shares of Northair Mines Ltd on the basis of one Nor-Quest share plus one dlr for two shares of Northair. Nor-Quest said it plans to bring Northair's Willa Mine in the Nelson area of British Columbia into production using Nor-Quest's recently acquired 1200-ton per day mill located in the area.  
BOOTHE <BCMP.O> MAKES ACQUISITION. Boothe Financial Corp, a diversified holding company, said it has acquired the <Robert Half and Accountemps> franchises in New England, including four offices in Boston and Eastern Massachusetts and one office in Providence, R.I. Boothe said it previously announced the purchase of <Robert Half International Inc> the franchisor of the Robert Half and Accountemps offices in the U.S. The company said the aggregate purchase price it paid for Robert Half International and the franchises was about 59 mln dlrs.  
ATLANTIC FINANCIAL <ATLF.O> TO ACQUIRE S AND L. Atlantic Financial said it signed a definitive agreement to acquire <Centurion Savings and Loan Association>. Atlantic did not disclose the purchase price. Atlantic said it originally announced its intention to acquire Centurion, located in Los Angeles, on Feb 23, 1987. Centurion has assets of 105 mln dlrs, Atlantic said.  
GAF <GAF> SEEN RAISING BORG-WARNER <BOR> BID. GAF Corp, set on acquiring Borg-Warner Corp's valuable plastics business, is believed by analysts to be preparing an increased offer for the Chicago-based company. Yesterday, Borg-Warner said it agreed to be acquired for 4.23 billion dlrs by a company to be formed by Merrill Lynch Capital Partners. Merrill offered 48.50 dlrs cash per share for 89 pct of Borg-Warner's common stock, and a package of cash and securities for the balance. Borg-Warner stock rose 1-3/8 to 49-5/8. "I think it's (the stock price) telling us GAF is coming in with another bid," said one analyst, who values the company at 51 or 52 dlrs per share. GAF has offered 46 dlrs per share. It holds 19.9 pct of Borg-Warner's stock. "You're in a cat and mouse game on how you're going to up the price. Obviously, nobody wants to pay more than you have to. I think GAF is looking at the company the way we're looking at it - that it's worth more," Pershing and Co analyst Richard Henderson said. Henderson estimated it is worth abouth 55 dlrs per share. GAF has only said it was reviewing the situation. Merrill Lynch officials did not return phone calls. Analysts have said they believe GAF Chairman Samuel Heyman sought Borg-Warner because of its chemicals and plastics business. The rigid plastics are used in such things as telephones, computer terminals, and appliances. "Where the heck can you buy a world class chemical operation these days," said Henderson. "He's (Heyman's) got the bucks. He's a heavy hitter, and he does not like to get pushed around," said Henderson. GAF, a roofing and chemicals concern, attempted a takeover of the much larger Union Carbide Corp two years ago. While GAF did not win the company, it made a substantial gain on its investment in Carbide. Analysts said GAF already has a large profit built into its Borg-Warner holdings. They said even if GAF raises its offer and does not succeed, a higher bid from another company would give GAF millions of dollars in profits on its stock. "It's a win-win situation," said one analyst. One analyst speculated an offer from GAF would be forthcoming shortly. "I think we are finally down to the final paragraph in this book," he said. Borg-Warner's other businesses include automotive parts, protective services, which includes Wells Fargo security guards, and Chilton Corp, a credit rating service. Charles Rose, an Oppenheimer and Co analyst who follows GAF, said if GAF were to sell into the Merrill Lynch offer, it would realize about 125 mln dlrs net profit, or about 3.50 per share. "I think there's a probability he goes up in price," said Rose. Rose said, however, he could not really predict what Heyman would do. "Sam's a low-risk, high-return player." "Is he trying to build a major industrial chemical enterprise, or is he trying to be an investment bank," Rose said. Analysts said Borg-Warner's chemical business would add earnings momentum to GAF. "I worked out that paying as much as 50 dlrs per share would still be additive to GAF in time, if they sold off most of the non-chemical facilities," said John Henry of E.F. Hutton. Borg-Warner's chemical and plastics business provided 1986 operating profits of 153.3 mln dlrs on revenues of 1.04 billion dlrs. Total operating profits were 349.7 mln dlrs, and net earnings were 206.3 mln dlrs for 1986. "The Borg chemical business is great," said Rose, adding its only U.S. competitors are Monsanto Co <MCT> and Dow Chemical Co <DOW>.  
<GEN TERM CORP> ACQUIRES PRIVATE FIRM. Gen Term Corp said it entered into escrow for the 5.2 mln dlr purchase of Lewis-Westco and Co, a privately-held bottler and distributor of wines and distilled spirits. Lewis-Westco had sales of more than 45 mln dlrs for its fiscal year ended June 30, Gen Term also said. Separately, Gen Term, which trades over-the-counter, said it plans to apply for NASDAQ listing after it completes the acquisition.  
CCX NETWORK <CCXN> TO MAKE ACQUISITION. CCX Network Inc said it has entered into a letter of intent to acquire privately-held <Modern Mailers Inc> and its affiliate <AnWalt Inc> for about 3,200,000 dlrs in common stock. The company said Modern Mailers had revenues of 8,600,000 dlrs for the year ended October 31 and provides computer service, computer printing and lettershop facilities.  
GANDER <GNDR.O> BUYS WESTERN WEAR RETAILER. Gander Mountain Inc said it acquired the privately held Western Ranchman Outfitters, a catalog and point-of-purchase retailer of western apparel based in Cheyenne, Wyo. It said Western Ranchman had sales for the year ended Jan 31, 1987 of about 2.2 mln dlrs. The purchase was made for an undisclosed amount of cast.  
RJ NABISCO'S <RJR> UNIT SELLS CIGAR BUSINESS. RJR Nabisco Inc's RJ Reynolds Tobacco USA unit said it reached a definitive agreement to sell Winchester Little Cigar Business to Tobacco Exporters International USA Ltd of Atlanta, the U.S. subsidiary of Rothman's International PLC. Terms were not disclosed. Last week, RJ Reynolds announced the sale of four smoking tobacco brands. These brands and Winchester represent less than one pct of Rj Reynolds Tobacco USA's total sales, which were 4.7 billion dlrs in 1986. Reynolds said the sale is expected to be completed on April 24. The company said it planned to concentrate its resources on the manufacture and sale of cigarettes. Reynolds said that Winchester, introduced in 1971, was a dominant brand in the little cigar market.  
GANDER MOUNTAIN <GNDR.O> BUYS WESTERN WEAR FIRM. Gander Mountain Inc said it acquired privately held Western Ranchman Outfitters, a Cheyenne, Wyo., retailer and catalog seller of western apparel. Terms were not disclosed. Western Ranchman had sales of about 2.2 mln dlrs for the year ended Jan 31, 1987, the company said. Gander Mountain sells brand name hunting, fishing and outdoor gear through catalogs.  
ERICSSON <ERICY.O> TO BUY REST OF SPANISH UNIT. L.M. Ericsson of Sweden said it agreed in principle to buy the 49 pct of Intelsa, its Spanish unit, that it does not already own from <Telefonica>, Spain's telecommunications administration. Terms of the agreement were not disclosed. Ericsson said Intelsa, which controls about 40 pct of the Spanish telephone switch market, has 2,400 employees and annual sales of 800 mln crowns, or 117 mln dlrs. "The purchase will not affect the close working relationship between Telefonica and Intelsa," Ericsson said.  
NOVA <NVA.A.TO> NOT PLANNING DOME <DMP> BID. Nova, an Alberta Corp, chief executive Robert Blair expressed hope that Dome Petroleum Ltd <DMP> remains under Canadian ownership, but added that his company plans no bid of its own for debt-troubled Dome. "We've no plan to bid," Blair told reporters after a speech to a business group, although he stressed that Nova and 57 pct-owned Husky Oil Ltd <HYO> were interested in Dome's extensive Western Canadian energy holdings. "But being interested can sometimes be different from making a bid," Blair said. TransCanada PipeLines Ltd <TRP> yesterday bid 4.30 billion dlrs for Dome, but Dome said it was discontinuing talks with TransCanada and was considering a proposal from another company and was also talking with another possible buyer, both rumored to be offshore. Asked by reporters if Dome should remain in Canadian hands, Blair replied, "Yes. I think that we still need to be building as much Canadian position in this industry as we can and I think it would be best if Dome ends up in the hands of Canadian management." He said he did not know who other possible bidders were. Blair said that any move to put Dome's financial house in order "will remove one of the general problems of attitude that have hung over Western Canadian industry." He added, however, that the energy industry still faced "a couple of tough, tough additional years." Asked about Nova's 1987 prospects, Blair predicted that Nova's net profit would rise this year to more than 150 mln dlrs from last year's net profit of 100.2 mln dlrs due to improved product prices and continued cost-cutting.  
<FIRST MONTAUK SECURITIES> IN MERGER DEAL. First Montauk Securities Corp said it has reached a preliminary merger agreement with MCC-Presidential Inc. The company said MCC shareholders would have a 25 pct stake in the combined company and would receive a cash distribution of about 35 cts per share.  
EMPIRE <EMPA.TO> TO BUY SOBEYS <SYSA.TO> STOCK. Empire Co Ltd said it will acquire all shares of Sobeys Stores Ltd it does not already own under an arrangement approved by directors of both companies. Holders of Sobeys class A non-voting shares and class B common shares may elect to receive either 1.6 non-voting class A Empire shares or one non-voting class A Empire share and one-half of an eight pct redeemable retractable preferred share. The preferred share has a par value of 25 dlrs and is retractable at the holder's option on May 1, 1994.  
(CORRECTED) - GOODYEAR <GT> TO SELL CELERON. Goodyear Tire and Rubber Co said it expects to sell its Celeron Corp oil and gas subsidiary for about two billion dlrs in about two months. After the company's annual meeting, Rober Mercer, Goodyear's chairman and chief executive officer, also said Goodyear expects to report a profit of more than one dlr a share from continuing operations in the first quarter. In the same year-ago period, Goodyear reported a loss of 59 cents a share from continuing operations. Mercer said about seven companies are interested in buying Celeron and they may form a consortium to buy the unit.  
<FOURTH NATIONAL CORP> STAKE ACQUIRED. Fourth National Corp said an investor group led by management has acquired a 73 pct stake in the company from Interfirst Corp <IFC>, a Dallas bank holding firm. A Fourth National spokesman said the deal was for cash but would not disclose the amount. Fourth National, a bank holding company with about 500 mln dlrs in assets, said in a statement that it will continue to operate its four subsidiaries and retain its employees.  
DEL WEBB <WBB> UNIT SELLS JOINT VENTURE STAKE. Del E. Webb Corp said its Del E. Webb Properties Corp unit sold one-half of its interest in the 224-acre Towne Meadows mixed-use development near Mesa and Gilbert, Ariz., to Klukwan Inc, an Alaskan native cooperative. Terms of the sale were not disclosed. Webb said it had a one-half interest in the venture.  
CANADA'S WILSON HAS NO COMMENT ON DOME (DMP). Finance Minister Michael Wilson said it was too early to comment on the tax implications of TransCanada PipeLines Ltd's 4.3 billion dlr offer for Dome Petroleum Ltd. "The specific offer by TransCanada is just in the course of being made and we don't have the details of all the elements of the proposal," Wilson told the House of Commons daily question period. Opposition parties were questioning Wilson about a possible loss of tax revenue if the takeover was completed because of the large tax credits held by Dome.  
DAUPHIN DEPOSIT <DAPN> TO ACQUIRE COLONIAL. Dauphin Deposit Corp said it signed a definitive agreement to acquire <Colonial Bancorp Inc>. The agreement calls for Colonial to be merged into Dauphin Deposit Corp, and Colonial's subsidiary, New Holland Farmers National Bank, to be merged into Dauphin Deposit Bank and Trust Co, the lead bank of Dauphin Deposit Corp, the company said. Shareholders of Colonial will receive between 3.6 and 4.4 shares of Dauphin common stock for each share of Colonial, depending on Dauphin's current market value, it said. As of Dec 31, 1986, Colonia Bancorp had assets of 150 mln dlrs, Dauphin said.  
CELLULAR COMMUNICATIONS <COMM.O> CLOSES BUYOUT. Cellular Communications Inc said that a unit purchased a 6.99 pct interest in the Cincinnati non-wireline cellular system. As a result of the transaction, the company said it now owns 100 pct of the system in Cincinnati.  
GAF <GAF> SEEKS INFORMATION ON BORG-WARNER<BOR>. GAF Corp said it is exploring its options in response to Merrill Lynch Capital Partners' 4.23 billion dlr offer for Borg-Warner Corp, and it has asked for all information that was supplied to Merrill Lynch. A GAF spokesman said the company asked for the information in order to enable GAF to fully evaluate its alternatives. The spokesman also confirmed that GAF did raise its bid to 48 dlrs cash from 46 dlrs per share on Friday. Merrill is offering 48.50 dlrs per share cash for 89 pct of Borg-Warner, and a package of cash and securities for the balance. The transaction with Merrill Lynch will take Borg-Warner private in the form of a leveraged buyout. Merrill Lynch does not intend to sell Borg-Warner assets, but it may be forced to do so in financing the deal, said sources familiar with the transaction. Borg-Warner has said its management is not a participant in the transaction, but managers will retain their positions. The investors involved with Merrill include pension funds, insurance companies and other institutional investors, sources said. Analysts believe GAF, which owns 19.9 pct of Borg-Warner, will raise its offer. That speculation drove Borg-warner stock up 1-3/8 to 49-5/8 in heavy trading. GAF closed at 49-5/8, off 3/4.  
KRAFT <KRA> COMPLETES ACQUISITION. Kraft Inc said it completed the acquisition of Holleb and Co, a foodservice distributor based in Bensenville, Ill. Terms were withheld. It said Holleb's 1986 sales were about 85 mln dlrs.  
NEWMONT <NEM> STAKE IN DU PONT <DD> DECLINES. Newmont Mining Corp held 5,250,376 Du Pont Co shares, or about 2.2 pct of those outstanding, at the end of 1986, down from the 5,970,141 shares, or 2.5 pct of those outstanding, it held a year earlier, Newmont's annual report said. --Corrects March 30 item to show holdings decreased.  
<THERA-CARE INC> TO ACQUIRE CUSHING. Thera-Care Inc said it agreed to acquire Cushing and Associates of Glendale, Calif., in exchange for 1,480,000 Thera-Care shares.  
INTERCO <ISS> COMPLETES LANE<LANE> ACQUISITION. Interco Inc said its shareholders and those of Lane Co approved a merger of the two companies at special meetings. As previously announced, Lane's shareholders will receive 1.5 shares of Interco common stock for each share of Lane stock held. Interco said the merger becomes effective April 14.  
HMO AMERICA <HMOA> AGREES TO BE ACQUIRED. HMO America Inc said it signed a letter of intent with Mount Sinai Medical Center here and an affiliate, providing that all of its common and preferred stock be acquired by a new not-for-profit company to be controlled by Mount Sinai and other Chicago area not-for-profit hospitals who may elect to participate in the acquisition. The form of the transaction has not yet been determined, it said. According to terms, HMO's shareholders would receive a combination of cash and debt securities to be issued by the buyer in exchange for their outstanding shares of common and preferred stock, it said. The amount of cash per share has not yet been determined, it added. Arrangements for financing have not yet been made and there can be no assurance that any financing will be received, HMO said. Closing of the proposed transaction, if it is completed, is expected on or before November 2, 1987, it said.  
DOME <DMP> BENEFITS FROM TAKEOVER SPECULATION. Shares of Dome Petroleum Ltd posted their biggest gain in months in the U.S. and Canada as stock markets foresaw a takeover tug-of-war beginning for the debt-heavy company. Dome rose 1/4 to 1-1/8 on the American Stock Exchange and gained 31 cents to 1.44 Canadian dlrs on the Toronto Stock Exchange, where it was the most active stock. It rose as high as 1.50 dlrs in Toronto during the day. In recent months, Dome has normally moved by only a few cents per day. TransCanada PipeLines yesterday announced a 4.3 billion dlr Canadian (3.22 billion U.S.) bid for all of Dome's assets, but Dome, which is based in Calgary, Alberta, said it is also still talking with two other companies, which it refuses to identify. Market analysts today said the other two firms are believed to be foreign oil companies, noting that TransCanada yesterday stressed that its bid is "a Canadian solution to the financial difficulties of Dome Petroleum." "The talk is about Conoco, which is controlled by DuPont <DD>, and Atlantic Richfield Co <ARC>, which sold its Canadian interest in 1975 and could be getting back in," said Wilf Gobert of Peters and Co Ltd. David Bryson of Moss Lawson and Co also noted that British Petroleum PLC <BP> is mentioned as a possible buyer, despite BP's 70 U.S. dlr per share bid two weeks ago for the 45 percent of Standard Oil Co <SRD> it does not already own. Calgary-based independent analyst James Hamilton has said in recent reports that Amoco Corp <AN> has also been in talks with Dome. Representatives of Atlantic Richfield, British Petroleum, Conoco and Amoco were not immediately available for comment. Gobert characterized the market action in Dome today as "awfully optimistic," given TransCanada's offer to give current Dome shareholders stock in a new subsidiary, which it valued at 1.10 dlrs Canadian per common share. Under the offer, current Dome common and preferred shareholders would own 20 pct of the new subsidiary, which would own and operate all Dome's former assets. TransCanada would own 80 pct. However, Bryson said the market may be looking at the potential for shares in a publicly-traded subsidiary. "The TransCanada offer has quite a bit of upside potential for Dome," he said. Gobert said he believes the TransCanada offer is "at the upper end of what I thought somebody would pay for Dome." The TransCanada proposal would pay Dome's creditors 3.87 billion Canadian dlrs (2.90 billion U.S. dlrs), with another one billion Canadian dlrs (750 mln U.S. dlrs) available to secured creditors if the Dome subsidiary earns profits above a certain level. TransCanada would not detail the profit level. Dome currently is seeking to restructure about six billion Canadian dlrs (4.5 billion U.S. dlrs) in debt, which it took on several years ago when oil prices were high and the company wanted to expand. "There has been speculation that Dome's assets are capable of supporting debt of three to four billion dlrs, so on that basis, the TransCanada offer would be at the upper end of that," Gobert said. Dome's debt troubles have often obscured the fact that it is a major player in the Canadian oil and gas field. It holds reserves of about 176 mln barrels of crude oil and 3.9 billion cubic feet of natural gas. The company also owns or has an interest in 14.2 mln acres of oil and gas exploration land in the province of Alberta, the heart of Canada's oil industry. Dome owns or has an interest in a total of 36.1 mln acres of land across Canada. The company also has tax credits of about 2.5 billion dlrs Canadian (1.9 billion dlrs U.S.). It reported a 1986 loss of 2.2 billion dlrs (1.65 billion dlrs U.S.), believed to be the largest ever by a Canadian company.  
GROUP RAISES COMPUTER MEMORIES <CMIN> STAKE. A shareholder group led by Far Hills, N.J., investor Natalie Koether said it raised its stake in Computer Memories Inc to 573,300 shares, or 5.1 pct of the total outstanding, from 542,000 shares, or 4.8 pct. In a filing with the Securities and Exchange Commission, the group, which includes Sun Equities Corp, an investment firm, said it bought a net 31,300 Computer Memories common shares since March 31 at prices ranging from three to 3-5/16 dlrs a share for "capital appreciation." The group had earlier abandoned plans to seek control of the company and lowered its stake to less than five pct.  
HONG KONG FIRM HAS 5.1 PCT OF MCGILL <MGLL.O>. Industrial Equity (Pacific) Ltd told the Securities and Exchange Commission it has acquired 72,600 shares of McGill Manufacturing Co Inc, or 5.1 pct of the total outstanding common stock. Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand firm, said it bought the stake for 2.3 mln dlrs for investment purposes. It said it may add to its stake, or sell some or all of it, but has no plans to seek control of the company.  
NORTHAIR <NRM.TO> OPPOSING NORQUEST <NQRLF> BID. Northair Mines Ltd said it would oppose Nor-Quest Resources Inc's earlier reported proposed takeover bid "with every means at its disposal," saying "this attempt at a property grab is an insult to the intelligence of our shareholders." It said Nor-Quest's offer to swap one Nor-Quest share plus one dlr for two Northair shares would seriously dilute Northair's equity in its Willa mine in British Columbia. "Our company is in sound financial position and production financing can be readily arranged when required. We're not looking for a partner and if we were, it certainly wouldn't be these guys," Northair said.  
TEXAS AIR <TEX> UNIT COMPLETES SYSTEM SALE. Texas Air Corp's Eastern Airlines said it completed its previously announced plan to sell its travel agency automation system, SystemOne Direct Access Inc, and its computer and communications support unit, EAL Automation Systems Inc, to SystemOne Corp, a wholly-owned subsidiary of Texas Air Corp.  
INVESTMENT FIRM HAS 5.3 PCT OF BLASIUS <BLAS.O>. Fidelity International Ltd, a Bermuda-based investment advisory firm, and an affiliated investment firm, American Values III N.V., said they have acquired 208,000 share of Blasius Industries Inc. In a filing with the Securities and Exchange Commission, the group said it bought the stake, which amounts to 5.3 pct of the total outstanding common stock, to acquire an equity interest in the company for investment purposes. The group said it may raise its stake or sell some or all of it, and has no plans to seek control of the company.  
ADAMS-RUSSELL <AAR> TO ACQUIRE CABLE SYSTEMS. Adams-Russell Co Inc said it agreed to acquire cable television systems serving about 7,000 customers in New York State from Sammons Communications Inc for undisclosed terms. Adams-Russell said the systems operate in Wellsville, Amity, Andover, Scio, Willing, Belmont, Milo, Jerusalem, Benton and Penn Yan, N.Y.  
INTERCO <ISS> SHAREHOLDERS APPROVE MERGER. INTERCO Inc said its shareholders and shareholders of the Lane Co <LANE.O> approved the merger of the two companies. In the merger, Lane's stockholders will receive 1.5 shares of INTERCO common stock for each outstanding share of Lane common stock, INTERCO said.  
DOTRONIX INC <DOTX.O> TO BUY <VIDEO MONITORS>. Dotronix Inc said it agreed in principle to buy Video Monitors Inc, a privately-held company. In payment for the acquisition, Dotronix will issue 312,500 unregistered shares of its common stock, notes worth 1.8 mln dlrs payable over three years, and about 70,000 dlrs in cash. Dotronix said Video Monitors' sales for the fiscal year ended April 30, 1986, were 7.6 mln dlrs. Dotronix had income of 659,663 dlrs on sales of 7.1 mln dlrs for the six months ended Dec. 31, 1986, as previously reported.  
MERRILL TO GET 30 MLN DLR FEE IN BORG <BOR> DEAL. Merrill Lynch and Co Inc <MER> subsidiary seeking to take over of Borg-Warner Corp said it could realize a 30 mln dlr fee for its efforts, whether or not the deal, which it values at 4.7 billion dlrs, succeeds. In a filing with the Securities and Exchange Commission, Merrill Lynch Capital Partners Inc said it would receive a 30 mln dlr fee from the surviving company for acting as dealer manager of the merger after the Borg-Warner deal is completed. But it said it could also receive a break-up fee of 30 mln dlrs if the deal fails for reasons, which include another party holding more than 40 pct of its stock or tendering for 50 pct. The 30 mln dlr fee is among the highest set down in any tender offer agreement, either in compensation for dealer manager services or for break-up of the deal. Merrill Lynch Capital Markets, backed by a group of investors it organized, has launched a 48.50 dlr a share tender offer for Borg-Warner for 90 pct of its stock. The company's board has approved the plan, which was intended to thwart an unsolicited offer from GAF Corp. Borg-Warner also agreed to redeem all outstanding Series A preferred shares and to pay off on all options at a 48.50 dlr a share exercise price before the merger is effective, it said. Merrill Lynch said its representatives discussed a possible leveraged buyout with Borg-Warner as early as last December. At that time, Merrill Lynch told the company it would consider a 43 dlr a share tender offer in cash and securities, if the Borg-Warner board approved, it said. On Feb 24, it said it was told the company had decided against a buyout. But talks were revived after GAF launched its 46 dlr a share proposal on March 31, Merrill Lynch said. Unlike its earlier proposal, Merrill Lynch said Borg-Warner management was asked not to take part in the new deal and it was conditioned upon payment of the fees. In addition to its fees, Merrill Lynch said it will also get up to 17 mln dlrs from Borg-Warner to cover its expenses in the tender offer. Merrill Lynch said it would continue operating Borg-Warner as a subsidiary with its current officers keeping their positions. But for flexibility purposes, Merrill Lynch said it is considering redistributing Borg-Warner's assets to a number of subsdiaries of an entity it created to carry out the merger. All in all Merrill Lynch estimated that there would be 130 mln dlrs in fees and expenses connected with the deal. Another 250 mln dlrs will be needed to repay certain debt of Borg-Warner, Merrill Lynch said. To finance the deal, Merrill Lynch said it expects to borrow 3.5 billion dlrs from a group of banks and sell 100 mln dlrs of common stock of the new company, sell 100 mln dlrs of non-voting preferred stock of the new company to Merrill Lynch and Co, sell up to 650 mln dlrs of subordinated notes to Merrill Lynch and Co and sell to the public 204 mln dlrs of subordinated discount debentures. GAF has raised its offer to 48 dlrs a share cash.  
CHRYSLER <C> NON-PROFIT GROUP SELLS UNIT. Chrysler Corp's Chrysler Motors Corp said its Chrysler Training Corp non-profit organization sold the name and assets of its Motech Auto Mechanic and Body Shop Schools to O/E Corp of Troy, Mich. The sale price was not disclosed. Under the Internal Revenue Service code, proceeds from the sale of Motech must be donated to another tax-exempt nonprofit organization. Chrysler did not reveal the name of the group that received the proceeds.  
DICEON ELECTRONICS <DICN.O> TO BUY SYMTRON CORP. Diceon Electronics Inc said it has entered an agreement in principal to buy closely-held Symtron Corp in a stock exchange transaction. Under the pact, Diceon would exchange 300,000 shares of its stock for all of Symtron's shares. The acquisition, which is subject to board approval and a definitive agreement, is expected to be concluded during May. Diceon said Symtron management would continue running the business, which would become a wholly-owned subsidiary. Symtron had 1986 sales of about 20 mln dlrs.  
NO TALKS SET ON PROPOSED JAPAN TELECOM MERGER. No formal talks have been scheduled yet among companies involved in a controversial proposal to merge two groups seeking to enter Japan's international telecommunications sector, an official from one group said. "Nothing has been firmed up yet," said an official at <International Digital Communications Planning Inc> (IDC), one of the groups set up last year to study competing against <Kokusai Denshin Denwa Co Ltd>, which monopolises the sector. Britain's Cable and Wireless Plc <CAWL.L>, which holds a 20 pct share in IDC, has opposed plans to merge with rival group, <International Telecom Japan Inc>. Under the plan, backed by the Post and Telecommunications Ministry, Cable and Wireless and U.S.-based <Pacific Telesis International Inc> would become core companies in the merged firm, with shares equal to those of the six major Japanese core companies and seats on the board of directors. Britain, angry over what it feels are moves to restrict Cable and Wireless' role in the sector, views the issue as a test case. The IDC official declined to specify what was holding up the talks. A spokesman for C. Itoh and Co Ltd <CITT.T>, which holds 20 pct of IDC, said a meeting may be held later this week.  
BANK OF CHINA BUYS SHARE IN LUXEMBOURG COMPANY. State-owned Bank of China has bought a three to five pct share of BAII Holding SA, a financial institution registered in Luxembourg, the China Daily Business Weekly said. It said the institution is 50 pct owned by Arab interests and has set up a wholly owned commercial banking branch in Hong Kong but gave no more details.  
UNION PLANTERS <UPCM.O> ACQUISITIONS APPROVED. Union Planters Corp said it has received regulatory approvals for its previously-announced acquisitions of Borc Financial Corp and First Citizens Bank of Hohenwald, and approval of its acquisition of Merchants State Holding Co is expected within 10 days. All are to be completed during the second quarter of 1987, it said.  
HOLIDAY CORP <HIA> SELLS STAKE IN VENTURE. Residence Inn Corp said it has agreed to buy Holiday Corp out of their equaly-owned joint venture for 51.4 mln dlrs, with closing expected within the next few weeks. The all-suite Residence Inn system, which is geated to extended stays, currently has 93 open franchised or company-owned hotels nationwide and another 55 in construction or development.  
AMOCO <AN> MAY BUY DOME <DMP>, REPORT SAYS. Amoco Corp is apparently the successful bidder for debt-laden Dome Petroleum Ltd, according to a published report. The Toronto Globe and Mail, quoting sources close to the negotiations, today said Dome broke off talks last night with TransCanada PipeLines Ltd, which last week announced a 4.3 billion Canadian dlr offer for all of Dome's assets. No financial details about the Amoco offer were available and a Dome spokesman would neither confirm nor deny that Amoco had emerged the winner, the newspaper said. However, the Dome spokesman indicated that the sale of Dome could be finalized and announced this weekend, the Globe and Mail said. Representatives of Amoco were not immediately available for comment. Last Sunday, when TransCanada announced its offer, Dome said it was also in talks with two other companies, but refused to identify them. Since then, market speculation has centered on Amoco and Exxon Corp's <XON> 70 pct-owned Imperial Oil Ltd subsidiary in Canada. British Petroleum PLC <BP> and Royal Dutch/Shell Group <RD> have also been mentioned as possible suitors for Dome. In the past two days, Dome management has been pressured by the federal government to select the offer from TransCanada, the only Canadian company in the bidding. Prime Minister Brian Mulroney's government appears to want to avoid a Dome sale to a foreign company since the government gave Dome hundreds of millions of dollars in tax breaks to encourage oil and gas exploration in the Arctic, analysts and officials have said. A purchase by TransCanada would be least likely to run afoul of Canadian antitrust laws, however, TransCanada is asking for tax concessions from a federal government that is trying to hold its deficit below 30 billion Canadian dlrs, analysts have said. A takeover by Amoco or Imperial would also give a foreign oil company a dominant position in Canada's oil industry. Imperial Oil is already Canada's largest energy company, with 1986 revenues of 7.1 billion Canadian dlrs. Chicago-based Amoco had 1986 revenues of 20.23 billion U.S. dlrs. Its Amoco Canada Petroleum subsidiary is 100 pct owned by Amoco Corp.  
FRENCH GOVERNMENT SETS TERMS OF BIMP SALE. The French Finance ministry said today a public flotation offer opening this coming Tuesday for 39 pct of the capital of <Banque Industrielle et Mobiliere Privee> (BIMP) has been set at 140 francs per share. The offer closes next Friday. The ministry said in a statement 51 pct of the bank's capital had been sold to a solid core of large investors, including insurance companies and Michelin subsidiary SPIKA, for 145 pct of the public offer price. Ten pct of the shares have been reserved for employees, who get a five pct discount increased to 20 pct if they keep the shares for two years. Employees also get one free share for each one bought, if the shares are held for at least one year. Small investors would receive one free share for every 10 bought, with an upper limit of five free shares per investor, and on condition the shares are held for at least 18 months. The state-owned capital of BIMP comprises 2.51 mln shares. The bank is being sold to the public as part of a sweeping programme to privatise 65 state-owned groups over five years. In a separate statement, the ministry said last week's privatisation offer of 1.07 mln shares in <Banque du Batiment et des Travaux Publics> (BTP) was 65 times oversubscribed.  
HONG KONG FIRM UPS CALMAT <CZM> STAKE TO 12 PCT. Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in CalMat Co to 3,712,860 shares, or 12.2 pct of the total outstanding common stock, from 3,312,460 shares, or 10.9 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand company, said it bought 400,400 Calmat common shares between April 9 and 13 for a total of 10.5 mln dlrs.  
FOUNDATION CUTS WURLITZER <WUR> STAKE. The Farny R. Wurlitzer Foundation told the Securities and Exchange Commission it cut its stake in Wurlitzer Co to 89,000 shares, or 4.98 pct of the total outstanding common stock, from 125,000 shares, or 7.0 pct. The foundation said it sold 36,000 Wurlitzer common shares between March 13 and 30 at prices ranging from 3.25 to 2.375 dlrs a share. As long as the foundation's stake in Wurlitzer is below five pct, it is not required to report further dealings it has in the company's common stock.  
INVESTMENT FIRMS RAISE ORIENT EXPRESS<OEH> STAKE. Two affiliated investment firms and funds they control told the Securities and Exchange Commission they raised their Orient Express Hotels Inc stake to 1,663,800 shares, or 17.0 pct of the total, from 1,560,800, or 15.9 pct. The firms, Boston-based FMR Corp and Bermuda-based Fidelity International Ltd, said they bought a combined 103,000 Orient Express common shares from March 12 to April 8 at prices ranging from 3.05 to 3.55 dlrs each.  
HOSPITAL CORP <HCA> BOARD AGAINST BUYOUT BID. Hospital Corp of America said its management believes the 47 dlr per share acquisition offer it received from Charles R. Miller, Richard E. Ragsdale and Richard L. Scott is not in the best interest of shareholders, and it does not plan to meet with the individuals. The company said its board considered information on the three and their bid, and "Given the lack of any demonstrated ability on the part of these individuals to consummate an acquisition of this magnitude, the board decided it was not necessary to take any action on their proposal at this time." Hospital Corp said "The benefits of the company's ongoing repositioning program are already being realized, and we will continue to explore appropriate alternatives for enhancing shareholder value."  
KENTUCKY CENTRAL <KENCA.O> UNIT SELLS STATIONS. Kentucky Central Life Insurance Co said its Bluegrass Broadcasting Co Inc subsidiary has agreed to sell two Orlando, Fla., radio stations to TK Communications Inc for 13.5 mln dlrs, subject to FCC approval.  
FIRST BANK SYSTEM <FBS> SELLS LEWISTON BANK. First Bank System said it has agreeed to sell its First Bank Lewiston subsidiary, of Lewiston, Mont., to two local bankers for undisclosed terms. First Bank Lewiston has assets of 101.4 mln dlrs at the end of the first quarter.  
ICN <ICN> HAS FIVE PCT OF SYNCOR <SCOR.O>. ICN Pharmaceuticals Inc told the Securities and Exchange Commission it has acquired 556,500 shares of Syncor International Corp, or 5.0 pct of the total outstanding common stock. ICN said it bought the stake for 3.9 mln dlrs as an investment and has no plans to seek control of the company or to participate in the management of it.  
DIXONS EXPLORING SALE OF CYCLOPS <CYL> UNIT. Dixons Group Plc <DXNS.L>, the British concern that recently acquired operational control of Cyclops Corp, said it is exploring the possibility of selling the Cyclops subsidiary, Busy Beaver Building Centers Inc. In a filing with the Securities and Exchange Commission, Dixons said it has determined to explore the possibility of the sale following its preliminary review of the business and activities of Cyclops. Busy Beaver Building Centers is a Pittsburgh, Pa., lumber and building materials company. Dixons won control of Cyclops with a 95 dlr a share tender offer.  
US STUDY DISCUSSES DROPPED COMSAT-CONTEL MERGER. A congressional study today said the proposed, but now apparently abandoned, merger of the Communications Satellite Corp <CQ> and Contel Corp <CTC> would technically be legal but could violate the spirt of the law setting up COMSAT. Two weeks ago before the study was completed, Contel announced it would seek to terminate the proposed merger. The study by the non partisan Congressional Research Service (CRS) said "the proposed merger appears to comply, technically, with the mandates or letter of statutes, if may nevertheless violate the spirit of the law." Comsat, created by a 1962 act of Congress, and Contel, a corporation of local telephone and communications firms, filed with the Federal Communications Commission last November 3 an application for merger. Several firms had protested the proposed merger. In an analysis of the law, the research service issued several critical comments about the structure of the new firm and said apparent domination by Contel of a restructured COMSAT would have broken the spirit of the law setting up COMSAT.COMSAT is the U.S. arm of Intelstat, the international satellite communications firm.  Reuter...^M  
STANDARD OIL SAYS BRITISH PETROLEUM SHARE TENDER EXTENDED UNTIL MAY 4.  STANDARD OIL SAYS BRITISH PETROLEUM SHARE TENDER EXTENDED UNTIL MAY 4  
STANDARD OIL SAYS BP EXTENDS TENDER. Standard Oil Co <SRD> said in a brief announcement issued after a meeting of its board of directors that British Petroleum Co PLC <BP.L> (BP) has extended its 70 dlr per share tender offer until midnight May 4. The offer for the 45 pct of Standard shares not owned by BP had been due to expire midnight April 28. Standard Oil said discussions with BP concerning the tender were continuing but provided no further details. "So long as those discussions continue, no recommendation will be made to Standard Oil shareholders regarding the offer," Standard said. Standard directors met at the company's Cleveland headquarters on Thursday in a regularly scheduled meeting. The spokesman was unable to say if the meeting would continue on Friday. A committee of independent directors previously obtained an opinion from First Boston Corp that the Standard shares were worth 85 dlrs each, 15 dlrs more than the BP offer.  
ELDERS PURCHASE OF CANADIAN BREWER APPROVED. Elders IXL Ltd <ELXA.S> said the Canadian government approved its bid for <Carling O'Keefe Ltd>. Elders earlier announced it was buying 10.9 mln shares, or 50.1 pct of Carling, from the Canadian subsidiary of Rothmans International Plc <ROT.L> for 18 Canadian dlrs each. Elders chairman John Elliott said in a statement when the offer for the ordinary shares closed on April 23, that acceptances representing over 93 pct of outstanding shares had been received. <IXL Holdings> would proceed to acquire the rest compulsorily, he said.  
CONISTON GROUP TO CONTINUE BID FOR ALLEGIS <AEG>. An investor group led by Coniston Partners said it plans to continue its effort to gain control of Allegis Corp despite the defensive maneuvers Allegis announced last week. Allegis said then that it would borrow three billion dlrs and pay shareholders a dividend of 60 dlrs per share, lowering the company's net worth. The Coniston group, which owns 13 pct of Allegis stock, has said that it would seek shareholder consents to remove 13 of the 16 Allegis directors. The group had said it would consider breaking up Allegis into its airline, hotel and vehicle rental components if it succeeded. The Coniston group said it expects to make a further announcement today on its plans for Allegis. Wall Street analysts and traders had not expected Coniston to abandon its pursuit of Allegis as a result of the Allegis defensive measures. Allegis officials were unavailable for comment.  
SPECTRA-PHYSICS REJECTS CIBA-GEIGY TENDER OFFER.  SPECTRA-PHYSICS REJECTS CIBA-GEIGY TENDER OFFER  
FIRST CITY INDUSTRIES SELLS YALE AND NUTONE UNITS FOR 400 MLN DLRS AND SECURITIES.  FIRST CITY INDUSTRIES SELLS YALE AND NUTONE UNITS FOR 400 MLN DLRS AND SECURITIES  
BOEING CO TO ACQUIRE ARGOSYSTEMS FOR 37 DLRS A SHARE.  BOEING CO TO ACQUIRE ARGOSYSTEMS FOR 37 DLRS A SHARE  
FIRST CITY <FCY> SELLS YALE, NUTONE UNITS. First City Industries Inc said it has reached a definitive agreement to sell its Nuton and Yale security subsidiaries to Valor PLC for 400 mln dlrs and warrants to purchase two mln Valor ordinary shares. In addition, the company said it will recieve a special dividend of 60 mln dlrs from Nutone and Yale and it has agreed to buy 35 mln dlrs of Valor convertible preference shares. First City said it is seeking to increase shareholder values by improving and realizing the values inherent in its operating subsidiaries. The company said the transaction is subject to approval by shareholders of Valor and is expected to be completed within 40 days. It said Valor has arranged financing through an issue of ordinary and convertible preference shares underwritten by Hoare Govette Ltd and Barclays de Zoete Wedd Ltd. Nutone makes built-in electric products for the housing market and Yale makes door locks and electronic security products. Valor makes home products.  
NATIONAL SECURITY <NSIC.O> STAKE ACQUIRED. National Security Insurance Co said a group of investors has acquired 226,243 common shares, or a 22.2 pct, interest, for 27.50 dlrs per share. The company said the acquisition of the portion of the shares over a five pct interest is subject to approval by the Alabama Department of Insurance. It said the sellers included Atlantic American Corp <AAME.O>, Bankers Fidelity Life Insurance Co and Georgia Casualty Insurance Co.  
COMPUTER ASSOCIATES TO ACQUIRE UCCEL CORP FOR ABOUT 800 MLN DLRS.  COMPUTER ASSOCIATES TO ACQUIRE UCCEL CORP FOR ABOUT 800 MLN DLRS  
ENTERTAINMENT MARKETING SEEKS TO BUY CRAZY EDDIE FOR EIGHT DLRS A SHARE.  ENTERTAINMENT MARKETING SEEKS TO BUY CRAZY EDDIE FOR EIGHT DLRS A SHARE  
SPECTRA-PHYSICS <SPY> BOARD REJECTS TENDER OFFER. Spectra-Physics Inc said its board rejected a 32 dlrs per share unsolicited tender offer for the company's stock from Ciba-Geigy Ltd <CIGZ.Z>, which already holds 18.8 pct of the stock. Spectra-Physics said it also filed a lawsuit in Delaware federal court this morning seeking to enjoin the offer and alleging, among other things, that the offer vilates federal securities laws, certain agreements between Ciba-Geigy and Spectra-Physics, and Ciba-Geigy's fiduciary duties. Spectra-Physics said the two Ciba-Geigy designess to its board were not present at yesterday's special meeting which voted to reject the offer as financially inadequate, unfair and not in the best interests of Spectra-Physics or its stockholders. The company said the board also authorized a special committee of outside directors to take whatever steps it deems necessary to protect the interests of Spectra-Physics and its stockholders and to investigate all alternatives to maximize the value of the stock, including talks with third parties. Spectra-Physics said a letter communicating the board's recommendation and reasons therefore is being mailed to stockholders. It said Robert Bruce, Reliance Group Holdings Inc's <REL> designee on Spectra-Physics' board, resigned his position on May 29. His letter of resignation said the action was to alleviate Ciba-Geigy's stated justification for making the unsolicited offer that it had not contemplated another significant investor having representation on the board when its Spectra-Physics' investment was made.  
BOEING <BA> TO ACQUIRE DEFENSE ELECTRONICS FIRM. Boeing Co and ARGOSystems Inc <ARGI.O> said they reached an agreement for Boeing to acquire the Sunnyvale, Calif., defense electronics firm for about 275 mln dlrs. The boards of both companies have approved the merger, which will be accomplished through a tender offer by a Boeing subsidiary of 37 dlrs a share cash for all of ARGOSystems' shares, the companies said. Under the agreement, the Boeing subsidiary, TBC Holdings Corp, will begin the tender offer promptly. If at least 90 pct of the shares are not tendered, the offer will be prorated to 49 pct, the companies said. ARGOSystems has granted Boeing an option to buy 1,238,311 shares or 18.5 pct of the outstanding stock for 37 dlrs a share, they said. Also, Bill May, chairman of ARGOSystems, and three other officers have granted Boeing an option to buy their shares, another 8.9 pct of the outstanding stock, for 37 dlrs a share. ARGOSystems makes equipment to monitor and analyze military communications signals, electronic warfare equipment to monitor and jam radar signals and signal processing systems. For the nine months ended March 31, 1987, ARGOSystems reported earnings more than doubled to 6.3 mln dlrs or 95 cts a share from 3.1 mln dlrs or 46 cts. The year-ago period included a 2.2 mln dlr charge from a writedown of securities. Sales rose 23.5 pct to 70.9 mln dlrs. Sales are expected to exceed 100 mln dlrs for the fiscal year ending June 30, the companies said in a joint statement. The company's backlog is currently more than 180 mln dlrs, they said. It has about 1,200 employees. About 30 pct of ARGOSystems' business comes from international customers. "ARGOSystems is a clear leader in its field. This association will expand our overall activities and significantly enhance our ability to compete in the defense electronics area," Boeing president Frank Shrontz said in a statement. ARGOSystems will operate as a wholly owned subsidiary of Boeing Co. The merger following the tender offer will be subject to approval by ARGOSystems shareholders, the companies said. The tender offer and merger are subject to customary conditions and expiration of the Hart-Scott-Rodino notification waiting period, they said.  
COMPUTER ASSOCIATES <CA>, UCCEL SET MERGER. Computer Associates International Inc and UCCEL Corp <UCE> said they have signed a definitive merger agreement under which Computer Associates will pay about 800 mln dlrs in stock for all outstanding UCCEL shares. The companies said under the terms of the agreement, all UCCEL shareholders will receive about 1.69 shares of Computer common stock for each of the approximately 17 mln UCCEL shares outstanding.  According to the companies, this would amount to about 47.50 dlrs per UCCEL share, based on May 29 New York Stock Exchange closing prices. Closing of the transaction is anticipated in August, the companies said. The companies said the resulting company wil retain the name Computer Associates International Inc. Additionally, the companies said Charles Wang, currently Computer Associates chairman and chief executive, will continue as chairman of the new company.  
ENTERTAINMENT MAKES BUYOUT OFFER TO CRAZY EDDIE. Entertainment Marketing Inc <EM> said it has made an offer to the board of Crazy Eddie Inc to acquire all outstanding shares of Crazy Eddie Inc for eight dlrs a share in cash. Entertainment said the offer would be conducted through a negotiated merger with a new corporation to be formed by Entertainment Marketing. Entertaiment said it has requested an early meeting with Crazy Eddie Inc's board and that it has committed 50 mln dlrs toward the purchase of the shares including those already purchased.  The company also said it has retained Dean Witter Reynolds Inc to assist in raising the balance of the financing. According to Entertainment, its company and its chairman own about 4.3 pct of Crazy Eddie's currently outstanding shares. Additionally, the company said it is willing to negotiate all aspects of its offer and is willing to consider a transaction which would be tax free to Crazy Eddie's shareholders.  
SOCIETY FOR SAVINGS <SOCS.O> FORMS PARENT. Society for Savings Bancorp Inc said it has completed its previously announced plan of acquisition making a new Delaware-chartered bank holding company the parent of Conneticut chartered Society for Savings.  
CPC INTERNATIONAL <CPC> COMPLETES ASIAN SALE. CPC International Inc said it has completed previously-announced transactions involving its grocery products businesses in four Asian countries with Ajinomoto Co Inc <AJIN.T>, raising about 300 mln dlrs. It said it will receive about 40 mln dlrs more later, mostly this month, when closings are expected in three more countries.  Proceeds will be used mostly for debt reduction. CPC said Ajinomoto has purchased its equity in Knorr Foods Co Ltd, a joint venture in Japan between the two companies, with CPC to get fees for trademark and technology use. CPC said Ajinomoto is also purchasing 50 pct interests in CPC's wholly-owned subsidiaries in Hong Kong, Malaysia, the Philippines, Singapore, Taiwan and Thailand.  
BORDEN TO ACQUIRE PRINCE CO FOR ABOUT 180 MLN DLRS.  BORDEN TO ACQUIRE PRINCE CO FOR ABOUT 180 MLN DLRS  
POREX <PORX.O> TO MERGE WITH MEDCO <MCCS.O>. Porex Technologies Corp said it has agreed to merge with its partly-owned subsidiary Medco Containment Services Inc in a deal worth about 380 mln dlrs in cash and common stock to Porex shareholders. The company said under the agreement, Prex holders would receive new Medco shares representing a pro rata share of the 9,159,552 Medco shares now owned by Porex plus a pro rata shares of the cash value of other porex assets, which is estimated at 60 mln dlrs subject to adjustment. Medco now has 16.9 mln shares outstanding. While exact terms may not be determined until the transaction becomes effective, Porex said each Porex share is expected to be exchanged for 0.82 Medco share and 5.38 dlrs in cash, subject to approval by sharehoilders of both companies. As part of the deal, Medco will split its stock five for two. The company said the merger will be accounted for as a corporate reorganization and be recorded at historical book values.  
COLT INDUSTRIES <COT> TO SELL BRITISH UNIT. Colt Industries Inc said it signed a conditional agreement to sell its Woodville Polymer Engineering Ltd subsidiary in Great Britain to the Dowty Group PLC of Gloucestershire, England, for 35.9 mln stg. The deal is scheduled to close by the end of June, the company said. Woodville, which makes high technology precision products for aerospace, automotive and other industries, had 1986 sales of about 24 mln stg, it said.  
VIDEO <JUKE.O> TO BUY PRESIDENT'S SHARES. Video Jukebox Network inc said it signed a letter of intent to purchase up to 3.5 mln shares of the four mln shares of the company's common stock from its founder and president, Steven Peters. Video said the shares are to be purchased by Louis Wolfson III, senior vice president of <Venture W Inc>, <National Brands Inc>, J. Patrick Michaels Jr and <CEA Investors Partnership II>. Video said it currently has 7,525,000 shares of common stock outstanding. The company said it went public earlier this year and its current ask price was 1-7/8.  CEA Investors Partnership II has planned the partnership to be operated by Michaels, who is chairman and president of <Communications Equity Associates Inc>, a media brokerage firm, Video said. The terms of the proposed transaction were not disclosed. Video said Peters will continue as chairman and president of the company. It said the parties have until June 29 to agree to all terms of the letter of intent.  
MARCADE GROUP <MAR> PLANS ACQUISITION. Marcade Group Inc said it has agreed in principle to acquire a prominent, privately-held maker of ladies' sports wear for an cash, shares and options to purchase Marcade common valued at about 20 mln dlrs. In its fiscal year recently ended, Marcade said, the company to be acquired which owns five U.S. manufacturing facilities and one offshore had revenues of over 60 mln dlrs and pretax earnings of about four mln dlrs.  
PENNSYLVANIA ENTERPRISES <PENT.O> BID STANDS. Utilities Investment Inc said it still is offering to acquire Pennsylvania Enterprises Inc for 55 dlrs per share. It said it is prepared to negotiate its offer. The Pennsylvania Enterprises board rejected the offer two weeks ago as being inadequate. Utilities said it has the financial commitments required to ensure that Pennsylvania Enterprises' facilities would be upgraded to insure an adequate supply of safe drinking water. It said its representatives will be attending Pennsylvania Enterprises' annual meeting tomorrow in Wilkes-Barre, Pa.  
MERRILL LYNCH SAYS PRORATION FACTOR FOR SUPERMARKETS TENDER IS 85.66 PCT.  MERRILL LYNCH SAYS PRORATION FACTOR FOR SUPERMARKETS TENDER IS 85.66 PCT  
RAVEN INDUSTRIES <RAV> BUYS TRUCK BODY BUSINESS. Raven Industries Inc said it purchased the utility truck body business of (Astoria Fibra-Steel, Inc) for cash. Details of the transaction were not disclosed. The Astoria product line, which has annual sales of about 2.5 mln dlrs, will be manufactured and sold by Raven's newly formed subsidiary, Astoria Industries Inc, Raven said. Its Glasstite Inc subsidiary also manufactures and sells utility truck bodies.  
PAY N' PAK <PNP> GETS TWO OFFERS FOR COMPANY. Pay N' Pak Stores Inc said it received two proposals in response to its previously announced solicitation of potential buyers for the company. The company said it is evaluating the proposals from Paul Bilzerian and from a third party which is active in the leveraged buyout field but which Pay N' Pak declined to identify. It said the Bilzerian proposal calls for shareholders to receive on a blended basis 16.67 dlrs in cash and 3.30 dlrs in liquidation value of cumulative exchangeable redeemable preferred stock for each common share.  Pay N' Pak said the second proposal is structured as a merger in which each holder would receive a combination of 17.50 dlrs in cash and 2.50 dlrs in liquidation value of 13-1/2 pct cumulative preferred. The company said the dividend on the preferred offered by Bilzerian would be set so that in the opinion his financial advisor and the company's financial advisor the preferred would trade in the public market at its liquidation value. Dividends on the preferred could be paid at the option of the surviving corporation in cash or additional shares of preferred for the first five years, it added..  Pay N' Pak said Bilzerian's proposal is subject to a physical inventory of merchandise at June 30. Bilzerian did not provide details with respect to financing of his proposal, which is not subject to a financing condition. The company said dividends on the preferred being offered in the second proposal would be paid in additional preferred in the first three years and the preferred would be redeemed in years 12 and 13. It said the second offer is contingent on the arrangement of financing, adding the party making the offer is confident of its ability to obtain the balance of the financing.  Pay N' Pak said the second proposal is conditioned upon a satisfactory agreement with the company's management regarding its equity participation in the new company. The second party anticipates executing a letter of intent when it delivers its financing commitment to the Pay N' Pak board that would incorporate an expense reinbursement and option arrangement, the company said.  
MAXWELL FILES SUIT TO STOP HARCOURT <HBJ>. Publisher Robert Maxwell's British Printing and Communicaton Corp PLC said it filed a lawsuit in U.S. district court against Harcourt Brace Jovanovich Inc, its directors and advisers to stop, among other things, payment of the special dividend Harcourt is paying as part of its recapitalization. The suit, filed in Manhattan, also names First Boston Corp <FBC> and seeks to void the issue by Harcourt of 40,000 shares of super voting preferred stock to First Boston Securities Corp and the issue of convertible voting preferred stock with 4,700,000 votes in the Harcourt employee stock ownership plan. The preferred shares to be issued to First Boston have 8,160,000 votes. The suit, brought derivatively on behalf of Harcourt and individually in British Printing's capacity as a substantial holder of Harcourt common shares and 6-3/8 pct convertible debentures. The suit alleges Harcourt's special dividend exceeds by more than one billion dlrs Harcout's surplus available for dividends under New York law and contstitutes a fraudulent conveyance. The lawsuit also alleges that Harcourt failed to disclose that one consequence of the payment of the dividend, which it terms illegal, will be that shareholders will be liable to repay it. Harcourt last week said it would pay 40 dlrs per share to stockholders as a special dividend. Harcourt also announced an extensive recapitalization plan, which analysts said was aimed at thwarting a takeover effort by British Printing. British Printing last week withdrew its 44 dlr per share, or two billion dlr offer for Harcourt because of the recapitalizaton plan. At the time, it said it was reviewing its alternatives. British Printing said it filed the suit after consultation with its advisers. Its lawsuit also alleges that Harcourt failed to disclose the effect of the special dividend on Harcourt 6-3/8 pct convertible debentures. British Printing alleges the effect will be an enormous increase effective on the June eight record date for the dividend in the number of Harcourt common shares issuable upon conversion of the debentures. British Printing also charged Harcourt is unlawfully coercing debenture holders to convert denbentures before the record date because Harcourt may not have enough authorized common shares to honor conversion after the date. British Printing holds 460,600 shares and 5.6 mln dlrs worth of debentures. The suit also alleges that management, the board of directors, and First Boston engaged in an illegal scheme of entrenchment through a combination of selling to First Boston Securities Corp the super voting preferred at a bargain price, the grant to the company employee stock plan of convertible voting preferred, the six mln share open market repurchase program and the manner in which its financing has been structured.  
STEINBERG GROUP HAS FIVE PCT OF PIZZA INN <PZA>. A group controlled by New York investor Saul Steinberg told the Securities and Exchange Commission it has acquired 168,500 shares of Pizza Inn Inc, or 5.02 pct of the total outstanding common stock. The group, which includes Reliance Financial Serivces Corp, a subsidiary of Reliance Group Holdings Inc <REL>, said it bought the stock as an investment. It said it might add to its stake or sell some or all of it. The Steinberg group said it bought the stock for 1.75 mln dlrs in open market purchases between April 13 and May 19 at prices ranging from 13.625 to 14.2661 dlrs a share.  
SUPERMARKETS GENERAL <SGL> TENDER EXPIRES. SMG Acquisition Corp, a subsidiary of Merrill Lynch Capital Partners Inc, said 38.3 mln shares of Supermarkets General Corp were validly tendered by the midnight Friday expiration, resulting in a preliminary proration factor of 85.66 pct. Merrill Lynch said it expects to announce the final proration factor within 10 business days and begin payment immediately thereafter. Shares validly tendered represented about 98.75 pct of the outstanding shares of Supermarkets General, the announcement said. The cash tender offer was for up to 32.8 mln shares at 46.75 dlrs net per share.  
(SUBURBAN BANCORP), (WOODSTOCK BANCORP) TO MERGE. (Suburban Bancorp Inc) and (Woodstock State Bancorp Inc) said they agreed to a merger under which Suburban will purchase Woodstock's shares for a total of more than 18 mln dlrs in cash and Suburban Bancorp shares. Woodstock is the holding company for the 110 mln dlr State Bank of Woodstock. The merger will bring Suburban's assets to 661 mln dlrs and its total banks to 13. The merger is subject to regulatory and shareholder approval.  
COKE CONSOLIDATED <COKE.O> TO SELL CANADA UNIT. Coca-Cola Bottling Co Consolidated said it has agreed in principle to sell its Vancouver-based Canadian bottling subsidiary to Coca-Cola Co <KO> for undisclosed terms, with closing expected within 60 days subject to regulatroy approvals. The company said the sale, a previously-announced agreement for Coca-Cola to buy 1,600,000 Coke Consolidated common shares and operating cash flow should allow it to reduce its long-term debvt to about 200 nmln dlrs from 325 mln dlrs at the end of the first quarter.  
CAMPEAU <CMP.T> UNIT TO SELL GARFINCKEL'S. Campeau Corp said its Allied Stores Corp entered into a definitive agreement to sell its Garfinckel's division to <Raleigh Stories Corp> for 95 mln dlrs. The transaction is expected to close in July, the company said. Garfinckel's net sales for fiscal 1986 were 111.9 mln dlrs, the company said. Campeau said it expects to sell its remaining Allied divisions in the near future. Campeau announced its first agreement to sell an Allied unit in April, the company said.  
WALLACE COMPUTER <WCS> BUY OFFICE PRODUCTS FIRM. Wallace Computer Services Inc said it acquired for 12 mln dlrs in cash and industrial revenue bonds, certain assets of Rockwell-Barnes Inc, a Chicago-based office products company.  
SUN <SUN> TO ACQUIRE MORE OF WYOMING FIELD. <Wolverine Exploration Co> said substantially all the material aspects of the agreement to sell its 8.95 pct working interest in the Luckey Ditch unit in Unita County, Wyo., to Sun Co Inc have been satisfied. Closing of the transaction is scheduled for June eight, Wolverine said. The company agreed to sell its interest for 7,250,000 dlrs, subject to downward adjustment for certain title and state requirements. Sun already owns a 44 pct working interest in the unit.  
GEODYNE <GEOD.O> SETS WARRANTS, ACQUISITION. Geodyne Resources Inc said iit filed a registration with the Securities and Exchange Commission covering a planned offering of 3.6 mln warrants to buy its common. The company also said its board is evaluating a proposal to acquire closely-held <Snyder Exploration Co> for one mln Geodyne shares. Members of Geodyne's senior management also serve as senior management at Snyder and PaineWebber Group Inc <PWJ>, which owns 40 pct of Geodyne's 12.6 mln outstanding shares, has a substantial equity interest in Snyder. The acquisition is being evaluated by Geodyne board members not employed by the company, PaineWebber or any company affiliated with PaineWebber. It will be subject to approval by the board and series C preferred shareholders. Geodyne Resources said a registration related to the stock to be exchanged for Snyder has been filed with the SEC but has not yet become effective. The Snyder owners other than PainWebber are Geodyne's president, Michael W. Tomasso, and its executive vice president, James D. Snyder. The company said the warrants will be offered solely to investors in the PaineWebber/Geodyne Energy Income Program II. For every 100 dlrs invested in the program, an investor will be entitled to buy one warrant to purchase one Geodyne common share at a price equal to 120 pct of the average closing price of the stock for the 15 trading days prior to formation of the partnership to which the investor subscribes. In adddition, Geodyne said, PaineWebber investment executives who market the program will be entitled to receive one warrant for every 500 dlrs in subcriptions generated after a four-year vesting period. These warrants would have an exercise price equal to 150 pct of the 15-day average. The company said the warrants are currently priced at 25 cts each, but this price is suject to further evaluation by an independent underwriter.  
ROYAL GOLD <RGLD.O> AGREES TO MAKE ACQUISITION. Royal Gold Inc said it has signed two agreements in principle to acquire the stock of two <Transwestern Mining Co> units for 1.1 mln shares of Royal Gold common stock. Royal said the assets of the units it will acquire from Transwestern are mostly gold properties. It added it expects to close the deals on June 18 and 19, subject to standard closing conditions, including title and environmental approval and closing of a definitive agreement. Royal said the shares issued in the deal will be subject to registration rights.  
PARTNERSHIP UPS HBO <HBOC.O> STAKE TO 8.7 PCT. Andover Group, a Great Falls, Va., investment partnership that is seeking control of HBO and Co, said it raised its stake in the company to 2,026,000 shares, or 8.7 pct of the total, from 1,626,000 shares, or 7.0 pct. In a filing with the Securities and Exchange Commission, the partnership said it bought 400,000 HBO common shares for 5.4 mln dlrs on May 28. The group, which has a slate of candidates seeking board seats, said it would decide whether to submit an offer to acquire the company after the HBO annual shareholders meeting, which was to have been April 30, but was postponed.  
HUMANA <HUM> TO BUY INT'L MEDICAL ASSETS. Humana Inc said a Florida Judge approved a previously announced proposal for the company to buy certain assets of International Medical Centers, which had been declared insolvent and put into receivership in early May. Humana said it will pay 40 mln dlrs to the state's Department of Insurance to pay prior claims and 20 mln dlrs in working capital.  
DIVERSIFIED INDUSTRIES (DMC) TO SELL UNITS. Diversified Industries Inc plans to recover more than four mln dlrs from the sale of two marginal subsidiaries, chairman Ben Fixman told the annual meeting. Fixman said Diversified Industries, as part of its effort to redeploy assets, wants to sell its Theodore Sall Inc and Liberty Smelting Works (1962) Ltd units. The two either lost money or had marginal profitability in recent years, he said. Diversified also said it is in the process of obtaining six mln dlrs in an industrial revenue bond financing from the State of Connecticut to modernize the company's Plume and Atwood Brass Mill plant in Thomaston, Conn.  
INSURANCE FIRM AS PIEZO <PEPI.O> PREFERRED STAKE. Corporate Life Insurance Co, a West Chester, Pa., insurance firm, told the Securities and Exchange Commission it has acquired 44,600 shares of preferred stock in Piezo Electric Products Inc, or 10.8 pct of the total. Corporate insurance said it bought the cumulative convertible preferred stock stake for 199,690 dlrs for investment purposes.  
CELLULAR INC <CELS.O> TO SELL UNIT, TAKE GAIN. Cellular Inc said it reached a definitive agreement to sell assets of its wholly owned Michigan Cellular Inc to Century Telephone Enterprises Inc <CTL> and add 28 cts a share to the year's earnings as a result. It said the sale, subject to regulatory approval, represents a capital gain in excess of 800,000 dlrs over the original price paid by Cellular for its cellular interests in Michigan, acquired in December 1986.  
DOTRONIX <DOTX.O> COMPLETES ACQUISITION. Dotronix Inc said it completed the acquisition of Video Monitors Inc for 3.92 mln dlrs. Video Monitors is a privately-owned Wisconsin-based manufacturer of video display and and video monitor devices.  
(CLARK COPY) BUYS NORWEGIAN FIRM. Clark Copy International Corp said it bought a Norwegian drafting machines company for three mln U.S. dlrs. Clark Copy said its majority-owned Norwegian subsidiary, Interactive Computer Aids Co of Norway, purchased Kongsberg Drafting Systems, a division of Norwegian state-owned Kongsberg Vappenfabrikk. Kongsberg Drafting's annual worldwide sales are about 15 mln dlrs, Clark Copy said.  
SOCIETY/SAVINGS <SOCS.O> FORMS HOLDING COMPANY. Society for Savings said it has completed a merger into newly formed holding company Society for Savings Bancorp Inc on a share-for-share basis.  
LADD FURNITURE <LADF.O> COMPLETES ACQUISITION. LADD Furniture Inc said it has completed the previously-announced acquisition of privately-held Colony House Furniture Inc for an undisclosed amount of cash and notes.  
PHILIP CROSBY <PCRO.O> MAKES ACQUISITION. Philip Crosby Associates Inc said it has agreed to acquire Process Integrity Inc of Dallas, a computer software designer, for undisclosed terms. It said Process' software helps companies monitor industrial processes, identifies problems and recommends solutions.  
PEERLESS MANUFACTURING <PMFG.O> SELLS UNIT. Peerless Manufacturing Co said it has sold its Industrial Sensors and Instruments Division and Panhandle Equipment Co subsidiaries for a total of 635,000 dlrs in cash. It said the transaction will result in a loss of about 605,000 dlrs or 50 cts per share, which it will take in the fourth quarter ending June 30. Peerless said due to the sale it will probably have a loss for the year. It said it sold the units, to buyers it did not name, due to increasing losses caused by the depressed petroleum equipment market.  Peerless earned 576,000 dlrs or 63 cts per share in fiscal 1986. It said the units being sold lost 28 cts per share in the first nine months of fiscal 1987 and 12 cts in all of fiscal 1986.  
HICKS AND HAAS GROUP GETS FINANCING FOR SPECTRADYNE ACQUISITION.  HICKS AND HAAS GROUP GETS FINANCING FOR SPECTRADYNE ACQUISITION  
<SEMICON TOOLS INC> MAKING ACQUISITION. Semicon Tools Inc said it has signed a letter of intent to acquire a majority interest in privately held East Coast Sales, a distributor and fabricator of technical ceramic products and disposable clean room materials and supplies. Terms were not disclosed. It said it expects to acquisition to result in a substantial sales increase.  
SAFETY-KLEEN <SK> COMPLETES ACQUISITION. Safety-Kleen Corp said it completed the acquisition of an 80 pct interest in BresLube Enterprises, for about 12 mln dlrs in stock and cash. BresLube, based in Toronto, collects used lubricating oils from auto garages, car dealers and other businesses, and re-refines it for resale. Its annual revenues are about 18 mln dlrs.  
HICKS/HAAS GROUP HAS SPECTRADYNE <SPDY.O> FUNDS. SPI Holding Inc, a group consisting of Hicks and Haas and Acadia Partners LP, said it has received commitments for the senior bank financing needed to complete its proposed acquisition of Spectradyne Inc for 46 dlrs a share in cash or securities, or a total of about 452 mln dlrs. The transaction was conditioned on the arrangement fo financing by today. It said it has also executed multi-year employment and non-competition agreements with five Spectrayne senior managers.  
COMPUTER ASSOC. <CA> BOLSTERS HAND AGAINST IBM. Computer Associates International Inc's 800 mln dlr merger with Uccel Corp <UCE> will eliminate its strongest rival, but the company still faces stiff competition from International Business Machines Corp <IBM>, Wall Street analysts said. "IBM is still the ruling force in mainframe systems software," said Scott Smith, an analyst with Donaldson Lufkin and Jenrette. "But the combination of the two companies will clearly present a much stronger front," he said. Besides IBM, "Computer Associates will be far and away the most powerful company in the field," added E.F. Hutton analyst Terence Quinn. That field is a segment of the market known as system utilities, or software packages that boost the productivity of a company's data processing facilities by increasing the speed, power and efficiency of large mainframe computers. The merger of Uccel and Computer Associates combines the two biggest systems utilities suppliers other than IBM. Analysts said the remaining players are mostly small firms that will find the competition much harder than in the past. For Computer Associates, the merger with Uccel caps a six-year acquisition campaign that has vaulted the Garden City, N.Y.-based company to the top of the software industry. When the deal is completed sometime in August, the company's revenues will exceed 450 mln dlrs, pushing it past Microsoft Corp <MFST> as the world's largest independent software vendor. Computer Associates founder and chairman Charles B. Wang took the company public in 1981, and since then he has bought 15 companies and boosted annual sales from 18.5 mln to 309.3 mln dlrs for the year ended March 31. Liemandt took charge of Wyly, sold off its non-computer businesses and decided that it would focus solely on mainframe computer software. In 1984, the company was renamed Uccel Corp. Liemandt, who said he will leave the company after the merger is completed, also turned to acquisitions for growth. On the last day of 1986, Uccel completed the buyouts of six companies for a total of about 60 mln dlrs. For 1986, it earned 17.0 mln dlrs, or 1.01 dlrs a share, on sales of 141.5 mln dlrs. The agreement took industry analysts by surprise, largely because the companies had been such bitter rivals. Also, Dallas-based Uccel had engineered a strong comeback from the dark days of 1982, when, as Wyly Corp, it lost 7.7 mln dlrs, or 56 cts a share. At that time, Wyly owned a potpourri of 13 different businesses, only three of which were involved in computer software. In 1983, Walter Haefner, a Swiss financier and a major Wyly investor, lured Gregory J. Liemandt away from his job as chairman of General Electric Co's <GE> computer services unit. Computer Associates' Wang and Uccel's Liemandt said at a news conference that the merger would give computer users a single source for a wide range of software products. In addition to system utilities, Computer Associates also sell products for microcomputers, while Uccel has made inroads in the applications software market, where analysts said it has been successful with accounting and banking systems. Wang said Computer Associates would continue to support and enhance both companies' product lines, but noted that the company will eventually weed out duplicate offerings. He said about 20 pct of the companies' products overlap. Analysts said the merger would dilute the holdings of current Computer Associates shareholders by about 10 pct. But they joined Wang in forecasting that the deal will not dilute Computer Associates' earnings for the current fiscal year. Quinn of E.F. Hutton said Wang has a proven track record of completing acquisitions without earnings dilution. Therefore, he said he would not change his 1988 earnings estimate of 1.05 dlrs a share. Wang said he would look closely at the combined operations of the two companies and cut duplication in sales, marketing and research and development. Analysts said Computer Associates paid a premium for Uccel. Based on Friday's closing price, the company will swap 47.50 dlrs worth of its stock for each Uccel share, which is nearly 33 times Uccel's 1987 estimated earnings of 1.45 dlrs a share. Stephen T. McClellan of Merrill Lynch Research said most software companies are currently valued at about 20 times per-share earnings. But the analyst said Uccel was worth the premium because of its earnings potential and customer base.  Wang said Haefner, the Swiss investor, would hold about 25 pct of Computer Associates stock after the merger. He currently owns 58 pct of Uccel. The executive said the merger would not alter his target of maintaining sales and earnings growth of 30 pct to 35 pct. In addition, he said he expects no problems in having the deal cleared by the antitrust division of the U.S. Justice Department. Uccel's Liemandt declined to say what he will do after the merger, but he did not rule out working together with Wang.  
MAXWELL WOULD NOT RENEW BID IF SUIT FAILS. British press magnate Robert Maxwell said his British Printing and Communication Corp Plc would not renew its bid for Harcourt Brace Jovanovich Inc <HBJ> if the lawsuit filed against Harcourt in New York today fails. Speaking at a press conference, Maxwell denied market rumors that British Printing had approached British institutions to arrange a rights issue with a view to relaunching its bid for the U.S. publishing concern. "I don't believe in chasing mirages," maxwell said. British Printing filed suit in U.S. District Court in Manhattan to block what Maxwell called a fraudulent recapitalization announced by Harcourt last week. Harcourt, in response to a hostile two billion dlr takeover proposal from Maxwell, planned a recapitalization that would pay shareholders 40 dlrs per share. Under the plan, it also said 40 pct of its shares will be controlled by its employees, management, and its financial adviser, First Boston Corp <FBC>.  
U.S. VIDEO <VVCO.O>, FIRST NATIONAL IN MERGER. U.S. Video Vending Corp said it completed acquiring First National Telecommunications INc from First National Entertainment Corp for about 10 mln, or a controlling interest of U.S. Video Vending shares. Pursuant to the transaction, Harvey Seslowsky and William Hodes resigned from U.S. Video's board and were replaced by four members of First National.  
RAPID-AMERICAN COMPLETES K MART <KM> STORE BUY. Privately-held Rapid-American Corp said it has completed the previously-announced acquisition of 66 Kresge and Jupiter stores from K Mart Corp. The company said it plans to operate 57 of the stores as McCrory Five and 10 variety stores and close the others by the end of July.  
TOTAL HEALTH <TLHT.O> TO MAKE ACQUISITION. Total Health Systems Inc said it has agreed to acquire CoMED Inc of Denville, N.J., a health maintenance organization with over 63,000 subscribers, for an undisclosed amount of cash, the assumption of liabilities and the provision of up to 10 mln dlrs in equity and debt financing. The company said the acquisition is subject to regulatory approvals. It said CoMED had 1986 revenues of 30.0 mln dlrs and earnings of 650,383 dlrs and had revenues for the first four months of 1987 of 13.6 mln dlrs, up 60 pct from a year before.  
UNITED ASSET <UAM> COMPLETES ACQUISITION. United Asset Management corp said it has completed the acquisition of Rice, Hall, James and Associates of San Diego for undisclosed terms. It said Rice Hall manages investments for institutions and individuals and has about 690 mln dlrs in assets under management currently.  
COMPUTERLAND TO BE ACQUIRED BY INVESTOR GROUP. Computerland Corp said an investor group led by the financial services firm E.M. Warburg Pincus and Co Inc has agreed to acquire Computerland's business. Computerland, a privately-held company said to be the world's largest retailer of personal computers, declined to provide details of the arrangement. But the company said it expects to close the acquisition over the next 60 to 90 days. In announcing the transaction, Computerland said the acquisition will provide it with resources and support to maintain and expand its leadership position in the computer retail industry. Computerland also said its network retail sales in 1986 totalled 1.45 billion dlrs.  
BILZERIAN SAYS IF PAY N'PAK SIGNS MERGER ACCORD HE WILL TENDER FOR 7.5 MLN SHARES.  BILZERIAN SAYS IF PAY N'PAK SIGNS MERGER ACCORD HE WILL TENDER FOR 7.5 MLN SHARES  
PIOSEC <PIO.AL> ACQUIRES SEMICONDUCTOR STAKE. Piosec Technology Ltd said it exchanged 4.5 mln common shares for 21 pct of privately owned <Alliance Semiconductor Corp> of Santa Clara, Calif. Followin the acquisition, a Piosec spokesman said, the company has 6.5 mln shares outstanding.  
CO-OPERATIVE <COBK.O> COMPLETES ACQUISITION. Co-operative Bancorp said it completed the acquisition of all the issued and outstanding stock of the Quincy Co-operative Bank <QBCK.O>. Under the agreement, Quincy stockholders will receive 30 dlrs cash for each share owned of the Quincy Co-operative Bank, for a total transaction of approximately 50 mln dlrs, Co-operative said.  
INFO-DATA TO ACQUIRE USA OUTDOOR ADVERTISING. <Info-Data Inc> said it will acquire <USA Outdoor Advertising Inc> of Jacksonville, Fla., in exchange for stock. USA Outdoor Advertising was acquired for 62.4 pct of the outstanding shares of Info-Data Inc, the company said. Info-Data said it plans to change its name to USA Outdoor Advertising Inc to reflect the change in the company's operations.  
UNI-MARTS <IMMA.O> ACQUIRES GAS-N-ALL STORES. Uni Marts Inc said it acquired seven <Gas-N-All Inc> convenience stores for an undisclosed amount of cash. The acquisition bring to 228 the number of convenience stores owned by Uni-Marts, the company said.  
ADVANCED TELECOMMUNICATIONS <ATEL.O> TO BUY CO. Advanced Telecommunications Corp said it reached an agreement in principle to purchase <Teltec Savings Communications Co>, a long distance telephone service in Florida. The proposed acquisition price is approximately 17.5 mln dlrs in cash, the company said.  
BILZERIAN PREPARED TO TENDER FOR PAY N'PAK <PNP>. Investor Paul Bilzerian said if Pay N' Pak Stores Inc enters into a merger accord with him he will immediately begin a tender offer for 7.5 mln shares for 20 dlrs per share in cash. Bilzerian told Reuters he believes his offer is superior to a leveraged buyout proposal disclosed in an announcement by the company this morning. The company said it is evaluating both proposals. Bilizerian said he was optimistic his offer will be accepted at a meeting of the board of directors Wednesday. Officials of Pay N' Pak did were not immediately available for comment.  Bilzerian said he has a pool of 150 mln dlrs raised by Shearson Lehman Brothers Inc available for the tender and "we may add a bank to that." "We've submitted an agreement we're prepared to sign," he said. Shares not accepted in Bilzerian's tender would be exchangeable for 20 dlrs in convertible preferred stock. Asked what would happen if the leveraged buyout group, which the company did not identify, topped his offer between now and the board meeting, Bilzerian said he expected an opportunity to respond. Pay N' Pak gave no details about the buyout group, but did say the offer was contingent on financing and on an agrreement regarding management's equity participation. Bilzerian said it was his understanding that the management particpation was "nominal." Pay N' Pak fell 1-1/2 to 19. Arbitrageurs said there was disappointment that neither of the offers topped 20 dlrs. "We were expecting an offer north of (above) 21 or 22 dlrs," said one arbitrageur. The leveraged buyout plan was for 17.50 dlrs per share in cash and 2.50 dlrs in 13-1/2 pct cumulative preferred stock.  Robert Cheadle, analyst at Montgomery Securities, said "you have to ask yourself why no one in the industry made a bid." Scott Drysdale, analyst at Birr Wilson Securities, said the company has not made the best strategic moves over the years. "They have not done the right things at the right time," he said, and as a result earnings per share have steadily declined since 1984. The 57 cts per share in earnings reported for the fiscal year ended in February was lower than 1978's earnings, he said. Earnings totaled 5.7 mln dlrs on revenue of 398.4 mln dlrs. Drysdale said Pay N' Pak has better trained sales people than many competitors, but it competes on price even though competitors have lower costs. The result is squeezed margins. He noted that there have been no other publicly identified bidders stepping forward since the company rejected an earlier Bilzerian proposal in mid-April. Another arbitrageur said it might not be too late for another bidder to get in the game. He speculated that someone in the same home improvement business might be able to offer a deal for stock that would top both the buyout proposal and Bilzerian's plan.  
FORSTMANN LITTLE AND CO SAID IT PLANS TO SELL SYBRON CORP UNIT.  FORSTMANN LITTLE AND CO SAID IT PLANS TO SELL SYBRON CORP UNIT  
PHARMACONTROL <PHAR.O> ACQUIRES REVCO UNIT. PharmaControl Corp said it acquired Private Formulations Inc from <Revco D.S. Inc> for six mln dlrs in cash, a 13,550,000 dlr promissory note and warrants to buy 200,000 PharmaControl common shares. PharmaControl said the purchase price was financed, along with one mln dlrs in working capital, through secured institutional financing. The company said betweenm 11,550,000 dlrs and 12,550,000 dlrs f the principal amount of the Revco note, plus accrued interest, is payable June 30. The balance is payable over three years. PharmaControl said it expects to make the payment due to Revco from proceeds of a proposed offering of units consisting of convertible subordinated debenturers and common stock currently on file with the Securities and Exchange Commission. Upon closing of the public offering, the company said, it expects the secured institutional financing to increase to a total of 12 mln dlrs. Private Formulations is primarily engaged in the manufacture and distribution of vitamins and private label over-the-counter pharmaceutical products.  
FISHER SHAREHOLDER INDECISIVE OVER STOCK BUY. Fisher Foods Inc <FHR> said <5300 Richmond Road Corp>, its largest shareholder, has not yet reached a definitive decision about whether it will buy more Fisher stock through a possible merger, tender offer or another acquisition proposal. 5300 is a Delaware corporation formed by <American Seaways Foods Inc>, <Rini Holding Co> and <Rego Companies> which owns 1.5 mln shares of Fisher, or about 44 pct of its outstanding common stock. Fisher said 5300 had announced on April 20 that they would make a decision on June 1 about the move. Fisher said 5300 also told it they will continue to explore possible advantages and disadvantages of various acquisition proposals. 5300 also said it is continuing to discuss with various financial groups about possible financing for such a move, but gave no indication of when any financing or proposal would be finalized, Fisher said.  
U.S. BANCORP <USBC.O> HAS ACQUISITION APPROVAL. U.S. Bancorp (Oregon) said it has been advised orally that its application for the acquisition of Old National Bancorp has been approved by the Board of Governors of the Federal Reserve. The company said it has also been advised that it has received Fed approvals for its acquisition of Heritage Bank of Camas, Wash., and for its conversion of its subsidiary, U.S. Thrift and Loan of Salt Lake City, Utah, into a commercial bank. In January U.S. Bancorp and Old National reached a definitive agreement covering the acquisition of all the stock of Old National which it does not already own for 171 mln dlrs. U.S. Bancorp currently owns 4.9 pct of Old National's stock.  
FORSTMANN LITTLE AND CO TO SELL UNIT. <Forstman Little and Co> said it plans to sell its Sybron Corp unit, a leading maker and marketer of dental and laboratory products, for an undisclosed sum. Forstmann Little said it acquired Sybron in February 1986 and since that time Sybron has been substantially restructured, with new management, lower corporate overhead and a new location in Saddle Brook, N.J. Fortsmann Little said <Goldman Sachs and Co> will act as its financial advisor for the move. It added that Sybron expects revenues for the current fiscal year of 242 mln dlrs with operating income of about 51 mln dlrs.  
TAKEOVER SPECULATION LIFTS HUTTON <EFH> SHARES. E.F. Hutton Group Inc shares rose on speculation the company would receive a takeover offer, traders said. Hutton's stock also was affected by a newspaper report that First Boston Corp <FBC> accumulated almost five pct of Hutton's stock on behalf of an outside client, traders said. Traders said the story, which appeared in USA Today, added speculation which began on the street last week. They said there were rumors the stock was under accumulation and speculation abounded the company would soon receive an offer. A Hutton official declined comment. Hutton's stock rose 2-1/4 to 39-3/8. Hutton several months ago rejected a buyout offer from Shearson Lehman Brothers Inc <SHE>. The newspaper story mentioned speculation American Express Co <AXP>, the parent of Shearson, was a possible buyer. But traders said the rumors today did not name buyers. First Boston officials were not immediatley available for comment. Prudential Bache analyst Larry Eckenfelder said he doubted the speculation about American Express. He said he believed Hutton, which is occassionally surrounded by rumors, moved up today as a result of the newspaper article. "Hutton is still a takeover candidate," said Eckenfelder.  
HONG KONG FIRM UPS WRATHER <WCO> STAKE TO 28 PCT. Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Wrather Corp to 2,025,850 shares, or 28.1 pct of the total outstanding common stock, from 1,808,700 shares, or 25.1 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand firm, said it bought 217,150 Wrather common shares on May 28 and 29 at 20.00 dlrs a share, or 4.3 mln dlrs total.  
ALLIED-SIGNAL <ALD> COMPLETES SALE OF MPB CORP. Allied-Signal Inc said it completed the sale of its MPB Corp unit to Bearing Acquisition Corp for 145 mln dlrs plus assumption of certain MPB liabilities. Headquartered in Keene, N.H., MPB designs and makes precision ball and roller bearings used in aerospace, ordnance and computer applications. Allied-Signal said the unit had 1986 sales of over 90 mln dlrs. It noted the sale to newly formed Bearing Acquisition was announced May 18.  Allied-Signal said Bearing Acquisition is a newly-formed corporation owned by an investors group organized by Harold S. Geneen and Donaldson Lufkin and Jenrette Securities Corp. Wells Fargo Bank provided senior debt financing to Bearing Acquisition and Donaldson Lufkin and Jenrette provided bridge financing in the form of subordinated notes, preferred stock and common stock in an amount sufficient to fund the purchase price, Allied-Signal added.  
BASS GROUP CUTS NATIONAL DISTILLERS <DR> STAKE. An investor group led by members of the Bass family of Fort Worth, Texas, said it lowered its stake in National Distillers and Chemical Corp to 1,159,400 shares, or 3.6 pct of the total common, from 1,727,200, or 5.3 pct. In a filing with the Securities and Exchange Commission, the Bass group said it sold 567,800 National Distillers common shares between May 15 and 29 at prices ranging from 59.94 to 63.44 dlrs a share. As long as the group's stake is below five pct, it is not required to disclose its further dealings in National Distillers' common stock.  
REPUBLIC AMERICAN<RAWC.O> UPS BUCKEYE<BPL> STAKE. Republic American Corp told the Securities and Exchange Commission it raised its stake in Buckeye Partners L.P. to 963,200 limited partnership units, or 8.0 pct of the total, from 744,200 units, or 6.2 pct. Republic, which is controlled by Cincinnati, Ohio, financier Carl Lindner and his American Financial Corp, said it bought 219,000 Buckeye units between May 14 and 22 at prices ranging from 22.49 to 23.02 dlrs each, or about 5.0 mln dlrs total.  
KINGSBRIDGE, MASCO SET MERGER. Kingsbridge Holdings Ltd, said it signed a letter of intent for a merger with <Masco Sports Inc>. The transaction calls for 230 mln sahres of Kingsbridge common stock to be issued to shareholders of Masco.  
DRESSER INDUSTRIES INC TO SELL RELIANCE STANDARD LIFE INSURANCE TO ROSENKRANZ UNIT.  DRESSER INDUSTRIES INC TO SELL RELIANCE STANDARD LIFE INSURANCE TO ROSENKRANZ UNIT  
WYSE <WYSE.O> TO GET LINK TECHNOLOGIES. Wyse Technology said it agreed in principle to acquire privately-held Link Technologies Inc in exchange for an undisclosed amount of Wyse Technology shares. Link Technologies develops and markets computer terminals, Wyse also said.  
DRESSER <DI> TO SELL UNIT TO ROSENKRANZ AND CO. Dresser Industries Inc said it signed a definitive agreement to sell its Reliance Standard Life Insurance Co to RSL Holding Co Inc., a subsidiary of the privately-held, New York-based investment firm of Rosenkranz and Co. Terms were not undisclosed. Philadelphia-based Reliance earned 25.3 mln dlrs on sales of 201.6 mln dlrs in 1986. Dresser said it will use the proceeds from the sale for stock repurchases, debt reduction, and possibly complementary acquisitions in the field of engineered products and services for energy producers.  
ATCOR<ATCO.O> SEEKS BUYERS FOR CONSUMER BUSINESS. Atcor Inc said that Roth-American Inc, which had signed a letter of intent on May 1 to acquire its Turco and Charmglow operations of its consumer products segment, has decided against buying Charmglow. While Roth-American said it is still interested in acquiring Turco, Atcor said it is now reviewing its options with other potential buyers who have expressed interest in its consumer products businesses.  
USPCI <UPC> SEEN REJECTING UNION PACIFIC BID. share bid made last Wednesday by Union Pacific Corp (UNP), analysts said. "The offer is inadequate," said Douglas Augenthaler, an analyst with E.F. Hutton, noting that it does not represent the needed premium over the company's fundamental value based on earnings estimates. USPCI, which has 8.7 mln shares outstanding, was trading at 48-1/8, down 3/8. USPCI vice president of finance Larry Shelton said he could not comment on the adequacy of the offer or on when the board would meet to consider it. Augenthaler said that while USPCI was trading at only 34 dlrs a share at the time of the takeover bid, its announcement that same day of higher earnings expectations changed its value. USPCI said its second quarter earnings would exceed analysts expectations of 24 to 30 cts a share. At that price, USPCI could maintain a stock price in the low 40s, Augenthaler said. Hutton revised its 1987 earnings estimate for the waste management concern to 1.40 dlrs a share from 1.20 dlrs on the announcment, he said. It lifted its 1988 projection to 1.90 dlrs a share from 1.70 dlrs. In addition, analysts said the hazardous waste management business holds significant growth potential. The industry has grown from 16 to 35 pct over the last five years, based on earnings per share, said Jeffrey Klein, an analyst with Kidder Peabody and Co. The industry is expected to continue growing at 15 to 35 pct over the next five years, he said. Augenthaler said the 43-dlr-a-share offer, or 375 mln dlrs total, would be a bargain for Union Pacific. The transportation and energy company would both gain entry into a profitable business and win cost-control benefits, he said. "Union Pacific has what are rumored to be some fairly signficant environmmental problems of its own," he said. Herb Mee Jr., president of Beard Oil Co (BEC), which holds a 30.4 pct stake in USPCI, said last week Union Pacific's offer was "grossly inadequate."  
FIRST OF AMERICA (FABK.O) ACQUIRES KEYSTONE. First of America Bank Corp said it acquired (Keystone Bancshares Inc) for 25 mln dlrs. Keystone shareholders will receive 45 dlrs per Keystone share, payable in First of America convertible preferred stock having a dividend rate of nine pct. Keystone has two affiliates with combined assets of 205 mln dlrs. First of America has 7.9 billion dlrs in assets.  
FLUOROCARBON <FCBN.O> COMPLETES ACQUISITION. Fluorocarbon Co said it completed the acquisition of Eaton Corp's <ETN> industrial polymer division. The company said it paid about 70 mln dlrs in cash for the division, which will be renamed Samuel Moore Group. Fluorocarbon also said the division should boost annual sales to 165 mln dlrs from last year's 98 mln dlrs.  
FINANCIAL SECURITY <FSSLA.O> TO BE ACQUIRED. Financial Security Savings and Loan Association said it signed a letter of intent for a controlling interest to be acquired by an investor group led by South Florida developer William Landa. Terms were not disclosed.  
EDELMAN GROUP CUTS BURLINGTON <BUR> STAKE. New York investor Asher Edelman and Dominion Textile Inc <DTX.T>, who are currently seeking to acquire Burlington Industries Inc in a hostile tender offer, said they lowered their stake in the company. In a filing with the Secruties and Exchange Commission, the Edelman/Dominion group, known as Samjens Acqusition Corp, said it sold options to buy 258,800 Burlington common shares, reducing its stake in the company to 3,408,813 shares, or 12.33 pct, from 3,667,313 shares, or 13.3 pct. The group said the sale, which represented all the Burlington options it owned, was made May 28 for 8.7 mln dlrs. The Edelman/Dominion group last week sweetened its hostile tender offer to 77 dlrs a share, after Burlington agreed to a leveraged buyout by a Morgan Stanley and Co-backed group for 76 dlrs a share. But the Edelman/Dominion group, which has litigation pending against Burlington, also said it has held talks with Morgan Stanley about "the possibility of settlement of outstanding matters among" it, Morgan Stanley and Burlington.  
ENTERTAINMENT MARKETING TOPS CRAZY EDDIE OFFER. A quickly growing Texas-based distributor of electronics products offered 240 mln dlrs for Crazy Eddie Inc <crzy>, the leading New York City electronics retailer, or one dlr per share more than its founder has bid. The 8-dlr-a-share offer by Entertainment Marketing Inc <em> for Crazy Eddie comes less than two weeks after founder Eddie Antar and a firm controlled by the Belzbergs of Canada announced a bid to take the 32-store Crazy Eddie chain private. Analysts said Entertainment Marketing, whose revenues and profits quadrupled in 1986, may be looking to break into the highly competitive New York City retail market for consumer electronics, the nation's biggest, at a time the fortunes of electronics retailers have sagged. The analysts questioned whether Houston-based Entertainment Marketing, founded by a former electronics retailer but whose present buinesses are primarily as wholesale distributors, had the management expertise for retailing or was merely trying to drive up the price of the Crazy Eddie shares it already owns. "I have mixed feelings," said analyst Dennis Telzrow of Eppler, Geurin and Turner, a Dallas brokerage. "On the one hand it's probably a cheap price. On the other hand, does Entertainment Marketing have the management talent to run it and will the Crazy Eddie people leave?" "It's a risky strategy for Entertainment Marketing," said analyst Eliot Laurence of Wessels Arnold and Henderson, a Minneapolis brokerage. "Electronics retailing is very management concentrated; they'd want to keep Crazy Eddie's management in place." Laurence said that, since Entertainment Marketing already owns 4.3 percent of Crazy Eddie's 31.3 million shares, it may be trying to get the Antar-Belzberg group to increase its 7-dlr-a-share offer. Shares of Crazy Eddie, which have jumped from the high 4-dlr range to above 7 dlrs since the Antar-Belzberg bid was announced May 20, rose another 50 cents Monday to 8.375 a share in over-the- counter trading. Antar, the reclusive founder of the chain in the New York City, Philadelphia and Connecticut areas, said last month that his group controlled 14 percent of Crazy Eddie's shares. A Crazy Eddie spokesman said the company's board has taken no decision on the Antar-Belzberg offer, worth some 187 mln dlrs since they own more shares than Entertainment Marketing. He would not comment on the new offer. Entertainment Marketing sells computer products such as disk drives and other, often discounted electronics goods to retailers, primarily in the southwest, and directly to consumers by cable television. In fiscal 1986, ending last January, its revenues rose to 87.9 mln dlrs from 21.3 mln dlrs the previous year. Net profit went to 3.2 mln dlrs from 750,000 dlrs in 1985. Entertainment Marketing, whose chief executive officer, Elias Zinn, once ran an electronics retailing business, said in a statement it had committed 50 mln dlrs toward the purchase of Crazy Eddie and had retained Dean Witter Reynolds Inc to assist in financing the balance. Analyst Telzerow estimated that the company would have to borrow about 100 mln dlrs to complete the proposed buyout since Crazy Eddie has cash and other assets worth about the same amount. Shares of Entertainment Marketing were up 12.5 cents Monday to 9.50.  
FIRST UNION <FUNC.O> COMPLETES ACQUISITIONS. First Union Corp said it completed the acquisition of two Florida-based banks, North Port Bank, based in North Port, and City Commerical Bank, based in Sarasota.  
INVESTORS MAY TAKE COMPUTERLAND PUBLIC. The investor group that has agreed to buy <Computerland Corp> will likely take the leading personal computer retailer public or sell it to other investors, industry analysts said. "Now's a good time," said Joe Levy of International Data Corp. "The personal computer industry has bottomed out and is on the way up again," he said. Earlier today, closely held Computerland, the largest PC retailing chain in the country, said it agreed to be bought by an investor group led by E.M. Warburg Pincus and Co, New York. Neither Computerland, which is 96 pct owned by its founder, William H. Millard, nor E.M. Warburg, a money management and venture capital firm, would disclose the value of the transaction. Analysts estimated that Computerland, whose 800 stores generated 1.4 billion dlrs in sales last year, would fetch  150 mln dlrs to 250 mln dlrs. Computerland franchise owners pay royalties averaging 5.9 pct to the parent company. Officials for E.M. Warburg referred all questions to Computerland. Computerland officials could not immediately be reached for comment. E.M. Warburg currently manages 1.5 billion dlrs in venture capital funds, and its past investments have included Mattel Inc <MAT> and the Ingersoll newspaper chain. It is also a money manager, with 3.5 billion dlrs under management. Although the PC retailers are benefitting from the strong upturn in PC sales, analysts said Computerland must make key changes if it is to fend off advances from rivals like Businessland Inc <BUSL.O> and Tandy Corp's <TAN> Radio Shack stores. "The name of the game now is outbound sales forces, customer service and customer support," said Levy of International Data.  Relations between Computerland and its franchise owners have mellowed recently after Millard was forced to give up managment control of the company in 1985. Ed Faber, who took over as chairman and chief executive officer, revamped the company's royalty plan, which help quell much of the franchisee dissent.  
LADD <LADD.O> UNIT COMPLETES ACQUISITION. Ladd Furniture Inc's Clayton-Marcus Furniture subsidiary said it completed the previously announced purchase of privately-held Colony House Furniture Inc for an undisclosed amount of cash and notes.  
CIS <CISIF.O> AGREES TO SECOND EXTENSION. CIS Technologies Inc said that it and the Swiss Reinsurance Co of Zurich, Switzerland agreed to a second extension of two dates for the final part of their share purchase agreement. It said the June one election date has been extended to June 15 and the June 30 closing date has been changed to July 31.  
WASTE MANAGEMENT <WMX> BOARD OKAYS MODULAIRE BUY. Waste Management Inc said its directors approved a May 10 accord with Modulaire Industries <MODX.O> under which Waste Management would acquire Modulaire. Under the agreement, Modulaire stockholders would receive 16 dlrs in Waste Management stock for each Modulaire share. Modulaire has scheduled a special shareholders meeting for July 15 to vote on the merger. Waste Management said it has received proxies from holders of 49.6 pct of Modulaire's common stock that could be voted in favor of the merger. The Hart-Scott-Roding waiting period on the takeover will expire June 17.  
BURLINGTON <BUR> HEARING TO CONTINUE TOMORROW. U.S. District Court Judge Eugene A. Gordon said he plans to issue a decision tomorrow on Burlington Industries Inc's request for an injunction to stop Samjens Acquisition Corp's takeover bid for the company. Wall Street sources have said the outcome of the case could be pivotal in determining the winner in the fierce takeover battle for Burlington, the largest u.s. textile maker. Gordon presided over six hours of argument today by lawyers for Burlington and Samjens, a partnership formed by Dominion Textile Inc and New York investor Asher Edelman. Hearings are scheduled to continue tomorrow. A preliminary injunction would hold up Samjens 2.47 billion dlr offer until the case is decided. Burlington had previously agreed to a 2.44 billion dlr buyout from Morgan Stanley Group Inc <MS>, one dlr per share lower than a sweetened 77 dlr per share bid made by Samjens last week. Burlington has not responded to the new Samjens offer. Burlington has alleged in its lawsuit that Edelman and Dominion used illegally obtained confidential information about the company in making their takeover attempt.  That information, Burlington said, was provided by James Ammeen, a former Burlington executive, through PaineWebber Group Inc <PWJ>. Ammeen, who had worked for Burlington for 23 years, had as many as 12 divisions with 50 pct of Burlington's sales reporting to him. When he left Burlington in November, 1985, Burlington said he signed a contract promising never to divulge inside information about the company. Burlington lawyers said shortly after he left he began working with a PaineWebber employee on a hostile plan to "takeover the company, dismember the company and displace its management," Burlington lawyer Hubert Humphrey said. Samjens lawyers acknowledged it received information from PaineWebber, but argued the information was public information and could be obtained either from texitle industry analysts or Burlington's public financial statements. Burlington lawyers said PaineWebber and Ammeen met with Edelman and Dominion in November and continued to meet with them until a couple of days before Edelman and Dominion went public April 24 with their intention to take over the company. Burlington lawyers claim Dominion's board decided to attempt a takeover of Burlington after Ammeen met with the board in February. Burlington lawyers said Edelman and Dominion held discussions with PaineWebber and Ammeen about acting as financial advisers to Samjens. But they allege talks broke off because Painewebber and Ammeen could not satisfy Edelman and dominion with a written statement that they did not provide inside information. Lawyers for Samjens contended that Painewebber and Ammeen withdrew as potential advisers because Burlington chairman Frank Greenberg had called a PaineWebber executive and threatened legal action if PaineWebber got involved in an effort to takeover Burlilgnton. "The ultimate question is not the price per share or the profit, but rather the permissable standards of conduct for those who would takeover an American company," said burlington lawyer Humphrey. Burlington lawyers also contended that Burlington, as the largest manufacturer of denim in the United States, would be in violation of anti-trust laws if it acquired Dominion, Canada's largest textile maker. Dominion has denim manufacturing plants in Georgia, which would reduce competition in the denim market, the lawyers said. Samjens' lawyers discounted the concern. They said the market for denim is more fragmented than Burlington contends and that Burlington has the ability to switch between light weight and heavy weight denim production as demand and price dictate. Samjens lawyers also pointed to a lawsuit filed by Burlington in Canada, in which it said it was considering a bid for Dominion. "Surely, what would have been sauce for the goose would have been sauce for the gander," said Sidney Rosdeitcher, a Samjens lawyer.  
EDELMAN DETAILS BURLINGTON <BUR> OPTIONS SALE. A tender offer of Asher Edelman and Dominion Textile Ltd <DTX.TO> for Burlington Idustries Inc is not affected by the investors' sale of options to buy Burlington stock, according to an associate of Edelman. Noting that "our tender offer is definitely in place" the aide said the investors are prohibited by Securities and Exchange Commission regulations from exercising options as long as a tender offer is open. The options are due to expire at the end of June. He said the May 28 sale of options to buy 258,800 Burlington shares was thus a "non-event."  
CONT'L MATERIALS <CUO> ENDS CONSIDERATION OF BID. Continental Materials Corp said its directors decided not to give further consideration to "business combination" proposed by a stockholder group that holds 5.2 pct of Continental Materials stock. Continental Materials said the offer had been received from Continental Associates, a group of St. Louis businessmen. According to Continental Materials, the group said May 11 it might boost its stake in Continental Materials. But the group also said in a letter last week to the company that the group had no financing. The board "did not consider it an official offer," a Continental Materials spokeswoman said.  
AMERIBANC <AINV.O>, CARDINAL END ACQUISITION. Ameribanc Investors Group and Cardinal Savings and Loan Association jointly announced that the proposed acquisition of Cardinal by Ameribanc has been terminated by mutual agreement.  
COURT UPHOLDS BANK BUILDING <BB> SELF-TENDER. Bank Building and Equipment Corp of America said the Delaware Chancery Court denied a stockholder's request for a preliminary injunction against an offer for Bank Building stock made by the company and its employee stock ownership plan and trust. Bank Building said the joint offer is for 780,300 shares of Bank Building stock at 14 dlrs a share. The offer is scheduled to expire midnight (EDT) on June 2. Bank Building also said its board set July 30 as the date of the company's annual meeting, with a record date of July six.  
HARCOURT <HBJ> DEBENTURES MAY TRIGGER SUIT. Holders of convertible subordinated debentures of Harcourt Brace Jovanovich Inc threatened to sue the company if they do not get more information about how their investment will be affected by the company's proposed recapitalization plan. The holders, none of whom was willing to be identified, said although Harcourt has urged that they convert their shares to common stock by the June eight record date for a special dividend, they were unable to determine if it might be better for them to continue holding the debentures.  "There are rumors that various houses will bring litigation if we don't get answers," said a Wall Street source. Officials of Harcourt declined to comment, citing a suit brought by British publisher Robert Maxwell whose has been trying to acquire Harcourt. Executives of First Boston Inc, Harcourt's financial adviser, did not return a telephone call seeking comment. When it announced its recapitalization May 26 Harcourt advised holders of the 6-3/8 pct convertible subordinated debentures due 2011 to convert into common by the June eight record date for the company's special dividend. Harcourt's special dividend pays 40 dlrs per share in cash plus a security worth 10 dlrs. Holders would also retain stock in the recapitalized firm. The debentures had been convertible at 34 dlrs per share. Harcourt's May 26 announcement said the conversion price would be adjusted according to the indenture covering the securities. Arbitrageurs said the conversion formula yielded a "negative number" and thus they needed further information from the company.  
EQUITICORP TASMAN TO BID FOR MONIER LTD. <Equiticorp Tasman Ltd> (ETL) said it will offer 4.15 dlrs a share cash for all the issued capital of Monier Ltd <MNRA.S>, currently the subject of a 3.80 dlrs a share bid by CSR Ltd <CSRA.S>. Alternatively, ETL will offer three shares plus 82 cents cash for each Monier share, it said in a statement. As previously reported, ETL moved into the market for Monier shares last week, taking its stake to 13.7 pct by Friday. It now holds 14.99 pct, the maximum allowed without Foreign Investment Review Board (FIRB) approval. ETL is classified as foreign because of its New Zealand base. The ETL cash offer values Monier's issued capital of 156.28 mln shares at 649 mln dlrs, against 593 mln for the CSR bid. Based on the current price of ETL shares of 1.05 dlrs, the alternative is worth 3.97 dlrs per share, but ETL said the value placed on its shares for the offer aproximates to the diluted asset backing of ETL as at March 31. ETL said the offer will have no minimum acceptance conditions and will be subject to Australian foreign investment and U.S. Hart-Scott-Rodino anti-trust clearances. ETL chairman Allan Hawkins said in the statement that the shareholding in Monier was a long term investment. ETL and its <Feltex International Ltd> associate have targetted the building products sector as an area of expansion and Monier fits well with this aim, he added. Monier chairman Bill Locke said in a separate statement that the independent directors of Monier intend to recommend acceptance of the ETL bid in the absence of a higher bid. He also said Monier will not now proceed with the one-for-two bonus issue announced with its interim results on March 19 in view of the proposed takeover bids. As previously reported, the CSR offer involves a complex put and call option deal with Monier's major shareholder, Redland Plc <RDLD.L>, which gives Redland the choice of accepting the CSR offer for its 49.8 pct stake or moving to 50.1 pct within six months of the bid closing. CSR officials have made it clear that they see Redland taking the second option, resulting in the two companies running Monier as a joint venture. CSR officials have also said they had no intention of raising the company's bid for Monier after ETL's intervention became public last week.  
STAD ROTTERDAM TAKES STAKE IN SWISS-OWNED INSURER. Dutch insurer Stad Rotterdam Anno 1720 N.V. <ASRN.AS> said from July 1 it will own 20 pct of the shares of <Europeesche Verzekering Maatschappij N.V.>, a fully-owned unit of Swiss insurer <Union Rueckversicherungs-Gesellschaft>. Stad Rotterdam chairman Lucas van Leeuwen told Reuters it may raise its stake to a majority interest if the two companies are found to be sufficiently compatible. Van Leeuwen said that due partly to the fact Europeesche made losses in 1985 and 1986, the 20 pct stake was obtained at below the shares' intrinsic value. He gave no precise sum. The Europeesche, which specialises in travel and recreation insurance, had a premium income of 150 mln guilders in 1986. Stad Rotterdam's premium income in 1986 was 1.17 billion guilders, making it the fifth largest Dutch insurer. Europeesche made a loss of nine mln guilders in 1985, which narrowed to 4.5 mln guilders in 1986, van Leeuwen said. He said the company was on course for independent recovery and was expected to reduce its losses further in 1987.  
DUFFOUR IGON GIVES BACKING TO AGA TAKEOVER BID. French industrial gas group <Duffour et Igon> has decided to back the takeover bid by Swedish industrial gases group Aga AB <AGA.ST>, ending a lengthy battle between rival bidders from France, Spain and West Germany, Duffour et Igon Chairman Jean Igon said. The board agreed late last night to back the Aga bid and advise its shareholders to accept the Swedish group's latest offer of 4,410 francs per share, he told Reuters. The other main bidders were Union Carbide Corp's <UK.> French subsidiary <Union Carbide France> and West Germany's Linde AG <LING.F>. Aga topped rival bids for the gases distribution group in May by raising its offer to 4,410 francs from 4,000 francs. This was accepted by Spain's <Carburos Metalicos SA> which sold Aga six pct of Duffour et Igon's stock and the right of first refusal on the remaining nine pct of stock it holds. It also won over the French Midi-Pyrenees development authority which agreed to sell Aga its 20 pct stake in Duffour et Igon. Under Aga's offer, shareholders can either accept a cash bid or exchange one share in Duffour et Igon for one bond of a nominal value of 4,410 francs with a 10 pct coupon issue by Aga France SA. The bond issue is guaranteed by the parent Aga AB. The takeover battle for the Toulouse-based company, which controls eight pct of the French industrial gas distribution market, began on April 2 with an offer of 2,100 francs per share from Union Carbide France <UK>. Aga's offer, which puts a price of 587 mln francs on the company, closes on June 24 and the results will be announced on July 21. Duffour et Igon shares were quoted yesterday at 4,410 francs, with no buyers, after a series of suspensions during the takeover tussle. They traded at 856 francs on January 9 before the first suspension.  
GLYNWED BUYS GALLAHER UNITS FOR AROUND 14 MLN STG. Glynwed International Plc <GLYN.L> said it had bought all the issued shares of two companies belonging to Gallaher Ltd, a subsidiary of American Brands Inc <AMB>, in a deal worth around 14 mln stg. The full names of the companies purchased from Gallaher are <Formatura Iniezione Polimeri Spa>, Genoa and <FIP U.K. Ltd>, Weybridge. Consideration for the purchases, which will be based on the net asset values per share of the companies, has yet to be finalised but some nine mln stg of the total represents debt assumed by Glynwed. FIP is a manufacturer of valves and other pressure pipe fittings in thermoplastics. Its products are complementary to those of Glynwed subsidiaries, Durapipe U.K. And Philmac. The acquisitions appreciably develop and strengthen Glynwed's strategic position in the thermoplastic pipework systems market. The sale by Gallaher reflects a decision to dispose of more peripheral businesses. Proceeds of the sale will be used in the continuing expansion of the Gallaher group. Glynwed shares were up 5p to 494 after the announcement. Gallaher is not quoted on the London Stock Exchange.  
BOEING <BA> STARTS ARGOSYSTEMS <ARGI.O> BID. Boeing co said it has started the 37 dlr per share tender offer for all shares of ARGOSystems Inc that it announced yesterday morning. In a newspaper advertisement, the company said the offer, withdrawal rights and proration deadline all expire June 30 unless extended. The offer is not conditioned on receipt of any minimum number of shares, Boeing said.  If at least 90 pct of ARGOSystems' shares are tendered, it said it will buy all shares, but if less than 90 pct are tendered, it said it plans to buy only 49 pct in the offer. Boeing said if less than 90 pct of ARGOSystems' shares are tendered, but the purchase of all shares tendered along with the exercise of options it holds would give it over 90 pct of ARGOSystems, Boeing may buy all shares tendered. ARGOSystems has granted Boeing an option to buy up to 1,238,311 new shares or a 15.6 pct interest at 37 dlrs each, and shareholders have granted Boeing an option to purchase up to 597,885 shares at the same price, or about 8.9 pct of those now outstanding, without taking the company option into consideration.  A merger at the tender price that has been approved by the ARGOSystems board is to follow the offer.  
DUMEZ HAS 478,125 UNITED WESTBURNE<UWI.TO>SHARES. Dumez Investments Inc said it is accepting and paying for 478,125 shares of United Westburne Industries Ltd in response to its 25 dlr per share tender offer and it has extended the offer until June 26. Dumez, 70 pct owned by Dumez SA <DUMP.PA> and 30 pct by Unicorp Canada Corp <UNIA.TO>, said the 478,125 shares represent 81.6 pct of those not controlled by Westburne International Ltd, which Dumez previously acquired in a tender.  
ITALY'S AGIP PETROLI BUYS STAKE IN U.S. COMPANY. State oil firm Agip Petroli Spa said it has acquired a 50 pct stake in Steuart Petroleum Co, an independent U.S. Oil products company. Financial terms were not disclosed. Agip Petroli, a subsidiary of state energy concern Ente Nazionali Idrocarburi, said in a statement that the remaining 50 pct of the U.S. Firm is owned by Steuart Investment Co, a holding company that also operates in the sectors of transportation, hotels and insurance. The Italian firm said Steuart Petroleum operates primarily on the East Coast.  
CAROLCO <CRC> MAY BID FOR LIEBERMAN <LMAN.O>. Lieberman Enterprises Inc said Carolco Pictures Inc is negotiating for the acquisition of the 50 pct of Lieberman shares held by the families of chairman David Lieberman and president Harold Okinow at 20.50 dlrs each, and if the deal were concluded, public shareholders would be offered the same price for their shares. Lieberman said the Carolco bid to its public shareholders would be in cash or shareholders could be offered securities as an alternative. The offer would occur within about 90 days after the closing of the sale of the initial 50 pct stake, the company said. The company said a final agreement has not yet been reached on the first transaction, but negotiations are expected to be concluded in early June. Present management is expected to continue to operate Lieberman, the company said. Lieberman distributes prerecorded music, video movies and other products.  
ENI UNIT AGIP PETROLI BUYS STAKE IN U.S. COMPANY. A subsidiary of state energy concern Ente Nazionali Idrocarburi <ENTN.MI> (ENI) said it has acquired a 50 pct stake in <Steuart Petroleum Co>, an independent U.S. Oil products company. Financial terms were not disclosed. Agip Petroli Spa said in a statement that the remaining 50 pct of the U.S. Firm is owned by <Steuart Investment Co>, a holding company which also has interests transportation, hotels and insurance. The Italian firm said Steuart Petroleum operates primarily on the East Coast of the U.S.  
BASIX CORP <BAS> TO SELL UNIT TO CUBIC <CUB>. BASIX Corp said it has agreed in principle to sell the stock of its Automatic Toll Systems Inc subsidiary to Cubic Corp for about 26 mln dlrs. The company said it would retain Automatic Toll assets worth about nine mln dlrs to dispose of over time. The company said completion of the transaction is subject to approval by both boards and BASIX's banks and the expiration of the Hart-Scott-Rodino waiting period.  
RESDEL <RSDL.O>, SAN/BAR <SBAR.O> IN MERGER DEAL. Resdel Industries Inc said it has agreed to acquire San/Bar Corp in a share-for-share exchange, after San/Bar distributes all shgares of its Break-Free Corp subsidiary to San/Bar shareholders on a share-for-share basis. The company said also before the merger, San/Bar would Barry K. Hallamore and Lloyd G. Hallamore, San/Bar's director of corporate development, 1,312,500 dlrs and 1,087,500 dlrs respectviely under agreements entered into in October 1983.  
CENTEL <CNT> COMPLETES SALE. Centel Corp said it completed the sale of its water properties serving 8,000 customers in four southwestern Kansas communities to Central Kansas Utility Co of Columbia, Mo. Terms were not disclosed.  
CSR SAYS IT IS PROCEEDING WITH OFFER FOR MONIER. CSR Ltd <CSRA.S> intends to proceed with its planned bid for building materials group Monier Ltd <MNRA.S> despite the counter-bid from <Equiticorp Tasman Ltd> (ETL), CSR executive director Gene Herbert told Reuters. ETL said today it would offer 4.15 dlrs each for Monier's issued capital of 156.28 mln shares, plus a share alternative. This compares with a 3.80 dlr cash element in CSR's proposed bid. The proposed offer by ETL, controlled by New Zealand entrepreneur Allan Hawkins, came after it built up a 14.99 pct stake in Monier in a 95 mln dlr share raid in recent days.  Herbert said Britain's Redland Plc <RDLD.L>, which holds just under 50 pct of Monier, still supported the CSR bid and had told CSR it is not a seller. He said Redland wanted to maintain and build on its operations in Australia and the U.S., Where Monier has built up a strong presence, notably in roofing tile manufacture. The CSR offer contains a put and call option agreement with Redland. This enables Redland to accept the CSR bid within six months of its close or to lift its stake to 50.1 pct in the same period and to run Monier as a joint venture with CSR. CSR has said that Redland will take up the second option.  ETL has declined to say why it intervened in Monier, beyond describing it as a long term investment. ETL would bring no synergies to Monier, unlike CSR which is a leader in building materials, Herbert said. "We fit better with Monier," he said. CSR has said that it will concentrate development on its core businesses of sugar and building materials after its moves into energy several years ago. Asked what he thought ETL's bid sought to achieve, Herbert said: "I'm puzzled as to what Hawkins' strategy is. One has to wonder if Monier is the main target."  Herbert said CSR had no plans to raise its bid, and said a higher price would be difficult to justify on fundamentals. Monier was trading at 2.80 dlrs when CSR launched its original bid of 3.50, or 16.8 times earnings, in late April. The shares closed at 3.90 dlrs today, down 25 cents on yesterday, after ETL withdrew on reaching the top foreign shareholding level permitted without Foreign Investment Review Board (FIRB) approval. Its bid is subject to FIRB approval. Herbert also said that institutions, which are more likely to accept a share alternative than cash, would have to judge the respective values of ETL and CSR shares.  ETL is the third group to become involved in a possible acquisition of Monier this year. Redland held discussions on a possible takeover before the CSR bid emerged but the negotiations foundered on the price. Share analysts said that for this reason, they did not think ETL's intervention would flush out a full Redland bid although Monier's ultimate fate rests in its hands. "Redland is still in the driving seat," said Tim Cohen of <Ord Minnett Ltd>, adding that Redland would be happier having CSR as a partner in running Monier than ETL. Monier's independent directors have recommended ETL's bid.  
MONTROSE HOLDING TO ACQUIRE VIRGINIA FEDERAL. <Virginia Federal Savings and Loan Association> said it has signed a definitive agreement to be acquired by <Montrose Holding Co>, an affiliate of <Montrose Capital Corp> for 20 mln dlrs. Virginia Federal and Montrose Capital said the agreement provides for the conversion of Virginia Federal from a mutual to a stock association and the purchase of 100 pct of its stock for 20 mln dlrs by Montrose. According to the companies, Virginia Federal has over 700 mln dlrs in assets and operates 16 branches in Virginia. Virginia Federal said the proceeds would enable it to provide increased mortgage and lending services and enable the company to compete more effectively in the Virginia market. The companies said the agreement is subject to Federal Home Loan Bank Board approval, expected later this year. Additionally, the companies said the converted association would be managed by a board of directors consisting of the six current Virginia Federal directors and two representatives of Montrose Holding. The senior management of Virginia Federal was expected to continue in office after the conversion, the companies said.  
ACME PRECISION <ACL> BUYOUT BID DROPPED. Acme Precision Products Inc said a management group has withdrawn a six dlr per share leveraged buyout offer. Acme said the management group dropped its bid due to continued weakness in the machine tool industry and in Acme Precision's operating results and to the inability of the management group to obtain modifications to terms of its financing commitment. It said, "The effect of these factors led the management group to conclude that the six dlr per share price was excessive under current conditions."  
ELDERS HAPPY TO LEAVE CARLING SHARES OUTSTANDING. Elders IXL Ltd <ELXA.S> says it is happy to leave preferences shares of brewer Carling O'Keefe Ltd outstanding after an undisclosed bidder made an offer to acquire all of Carling's outstanding preferred stock. Elders, which owns 100 pct of Carling's outstanding common shares, previously proposed to redeem the 433,745 Carling series A preferred shares at 33.50 Canadian dlrs each and redeem the 386,662 series B preferreds at 40 dlrs a share. The series A and B preferred shares carry no vote while dividends are paid.  Elders says neither it nor Carling knows the identity of the bidder for Carling's preferred shares. On May 29, the bidder offered to acquire the Carling preferred for 36 dlrs for each series A and 40.50 dlrs for each series B share. Elders said leaving the Carling preferred shares outstanding will not affect ongoing plans of the company. Series B preferred shareholders had previously rejected Carling's proposal to redeem the shares and a series A preferred shareholders meeting was adjourned to June 12.  
JONES AND VINING <JNSV.O> STARTS BID FOR SHARES. Jones and Vining Inc said it has started a tender offer for all of its own shares at five dlrs per share. The company said it will hold a special meeting on July 10 for a vote on approval of a merger at the tender price. It said the price to be paid in the tender and merger could be reduced by any fees and expenses the court may award to counsel for the plaintiffs in the class action suit brought against it in Delaware Chancery Court by Ronda Inc. The plaintfiffs' counsel are seeking fees of up to 10 cts per share, Jones and Vining said. The company said the court has scheduled a hearing on the proposed settlement of the suit for July Eight. The company said the start of the tender offer and the calling of the special meeting are conditions of the settlement, and completion of the tender and merger are conditioned on final approval of the settlement.  
HEALTHSOUTH <HSRC.O> MAKES ACQUISITION. HEALTHSOUTH Rehabilitation Corp said it has acquired Pine Island Sports Medicine Center in Fort Lauderdale, Fla., and will incorporate the facility into its HEALTHSOUTH Rehabilitation Center of Fort Lauderdale, which is now under construction and should be in operation by mid-summer. Terms were not disclosed.  
BANC ONE <ONE> MAKES INDIANA ACQUISITION. Banc One Corp said it has completed the acquisition of First National Bank of Bloomington, Ind, which has assets of 271 mln dlrs.  
ORION BROADCAST <OBGI.O> BUYS FORD <F> UNIT. Orion Broadcast Group Inc said its majority-owned Orion Financial Services Corp subsidiary has agreed to purchase FN Realty Services Inc from Ford Motor Co for 1,200,000 to 1,500,000 dlrs in cash and notes. It said closing is expected within 45 days after receipt of regulatory approvals. FN provides loan collection, accounting, data processing and administrative services to the real estate industry.  
JUDGE TO DECIDE BURLINGTON <BUR> IN SEVERAL DAYS. U.S. District Court Judge Eugene A. Gordon said he will decide "in the next few days" whether to grant Burlington Industries Inc's request to stop a takeover by Samjens Acquisition Corp. "I do not know how I come down on this preliminary injunction," Gordon said after listening to arguments by attorneys for 1-1/2 days. "It's been a long time since I was deluged with as much information as I have been. I have to consider what's been presented and issue an opinion on this. Both sides cannot be winners," he said. Burlington requested the injunction to stop a takeover effort by Samjens, claiming the partnership used illegally obtained confidential information about the company to make its offer. It also alleges there would be anti-trust violations if Samjens, formed by Asher Edelman and Dominion Textiles Inc of Canada, were to succeed. Samjens last week topped a 76 dlr per share offer for Burlington from Morgan Stanley Group <MS> by one dlr per share. Morgan Stanley made its 2.44 billion dlr bid after Samjens bid 72 dlrs per share for Burlington. Burlington lawyers told the court if the injunction is not granted Samjens would win control of Burlington. A Samjens lawyer argued that if the judge granted the injunction it would "kill the offer" Jay Greenfield, an attorney for Samjens, said the partnership would suffer irreparable harm if the injunction were granted. "There's only one Burlington," he said. "If we cannot get that then no amount of money can compensate us." Greenfield also said Samjens could sell its holdings in Burlington for 95 mln dlrs. "We don't want that. We're not in this for the money," he said. Irving Nathan, a Burlington lawyer, reiterated that information provided by James Ammeen, a former Burlington executive, was crucial to Dominion's decision to attempt o takeover of Burlington. "Dominion relied on the information provided by the insider Jim Ammeen," Nathan said. An attorney for Ammeen, who is named as a defendant, asked the court to dismiss the lawsuit against his client. The judge said he would not rule on the request today.  
ALLEGIS <AEG> TO SELL CANADIAN HOTELS. Allegis Corp said it has created a limited partnership to sell selected hotels in Canada to the public. It said the offering is expected to raise in excess of 350 mln Canadian dlrs and will be completed by the end of September. The limited partnership will be similar to the Westin Hotels limited partnership completed last year when Allegis sold Westin hotels in San Francisco and Chicago. Allegis reported a pretax gain of 80.6 mln dlrs as a result of that partnership.  An Allegis spokesman said the offerings have been in planning stages for a long time and are unrelated to recent corporate developments such as the firm's recapitalization plan and a threatened takeover by an investor group lead by Coniston Partners and the pilots of its United Airlines unit. The spokesman said the company has not yet identified which of its Canadian hotels will be offered for sale. Allegis has 100 pct ownership in Westin hotels in Vancouver, Calgary, Ottawa and Toronto, and 100 pct interest in Hilton International hotels in Toronto and Montreal. It owns 60 pct of the Westin in Edmonton. Richard Ferris, chairman of Allegis, said in a statement the hotel limited partnerships allow the company to convert unrecognized asset appreciation into cash. As with the proceeds from the earlier limited partnership, the money will be used for general corporate needs, the spokesman said. Merrill Lynch Capital Markets and Wood Gundy will be lead underwriters for to the public offering. The limited partnership will be offered outside the U.S, Allegis said.  
RAYCOMM TRANSWORLD <RACM.O> TO MAKE ACQUISITION. Raycomm Transworld Industries Inc said it has agreed in principle subject to board approvals to acquire Spiridellis Consulting Group Inc, a privately-held computer services consulting firm, for a number of common shares to be determined based on pretax earnings of Spiridellis over a five-year period. The company said it will gaurantee that almost all of the issued shares will attain price levels ranging from five to nine dlrs each for two years after their issuance. It said Spiridellis had revenues of 3,500,000 dlrs in calendar 1986.  
3M <MMM> ACQUIRES CONTROL DATA <CDA> UNIT. Minnesota Mining and Manufacturing said it acquired a computerized hospital information systems business from Control Data Corp. Terms were not disclosed. The business, which has 145 employees and supplies computers and software for hospital information systems, will be integrated into 3M's hospital software business. Control Data said the divestiture was part of its strategy to focus on narrower markets.  
CENTURY <CCC.O> TO BUY TO PUERTO RICAN CO. Century Communications Corp said it had entered into an agreement to acquire all the assets of <Community Cable Vision of Puerto Rico Associates>  and its associated companies for about 12 mln dlrs. Century said it anticipates that <ML Media Partners LP>, which jointly owns with Century a company called <Cable Television Co> of greater San Juan, will join in acquisition and management of Community Cable. Century said Community Cable is located in San Juan, Puerto Rico.  
STEWART <STEW.O> SELLS PLANT TO SARA LEE <SLE>. Stewart Sandwiches Inc said it has sold its coffee roasting plant to Sara Lee Corp's Superior Coffee and Foods subsidiary for undisclosed terms. The company said Superior will become the exclusive packer of Squire labeled coffee products, which are marketed by Stewart, and Stewart will provide equipment, service and distribution suppoort for some Superior coffee accounts.  
NCNB <NCB> TO MERGE WITH (CENTRABANK). NCNB Corp said the board of governors of the Federal Reserve System approved its application to merge with (CentraBank Inc) of Baltimore, expected to be completed July 1. The company said the board's approval included the dismissal of a protest by the Baltimore-based Maryland Alliance for Responsible Investing against NCNB's performance under the Community Reinvestment Act.  The company said Maryland Alliance wanted the merger blocked on the grounds that NCNB inadequately served the credit and financial needs of low-income and minority communities in its markets. The company said it denied the claim.  
SPECTRA-PHYSICS <SPY> MULLS SALE, RESTRUCTURE. Spectra-Physics Inc said it is considering the possibility of recapitalizing, restructuring, or seeking a buyer for the company following its rejection of an unsolicitied 32 dlr a share bid from Ciba-Geigy Corp. In a filing with the Securities and Exchange Commission, the San Jose, Calif., gas lasers and accessories company also said its board Sunday agreed to a plan that gives 52 top executives bonuses ranging from 20 to 50 pct of their base salary if they stay with the company through August 29. In rejecting the takeover proposal by the U.S. subsidiary of Swiss-based Ciba-Geigy AG, the company said it was unfair. The Spectra-Physics board voted unanimously, with two Ciba-Geigy representatives not participating, to reject the Swiss-based chemical and pharmaceutical company's takeover bid, citing an opinion from its financial advsior, Morgan Stanley and Co Inc, that it is "inadequate and unfair from a financial point of view to the holders of shares," the company said. The board also authorized a special committee and Morgan Stanley to "vigorously investigate, pursue and authorize any alternatives which would maximize the value of shareholders' investment in the company," the company said. Among the alternatives the special committee will consider are a sale of the company to a third party for more than 32 dlrs a share, a recapitalization or restructuring, including self tender offers and/or asset dispositions through the use of dividends, Spectra-Physics said. The "retention plan" for the 52 top officers will pay an average bonus percentage of 28 pct of salary, it said. Spectra-Physics said its board approved the plan "in order to encourage key operating personnel to remain with the company during the period of turmoil and uncertainty engendered by the (Ciba-Geigy) offer." Under the plan, the executives would be entitled to their cash bonuses if they stay with the company through August 29, but could receive them earlier if they are fired for reasons other than gross and willful misconduct, or if they leave the company because their salaries have been sharply cut. Spectra-Physics also said it filed suit against Ciba-Geigy yesterday in U.S. District Court in Wilmington, Del., charging it with making a takeover bid that was false and misleading in violation of securities law and with violating the intent of July 9, 1985 standstill agreement. Spectra-Physics said Ciba-Geigy indicated at the time of the standstill agreement that it would not make an unsolicited takeover proposal for the company and that the intent of the agreement was that Ciba-Geigy would not acquire more than 20 pct of the company unless there was another takeover threat. Ciba-Geigy was 18.8 pct of Spectra-Physics and Reliance Group Holdings <REL>, which is controlled by New York investor Saul Steinberg, controls 12.8 pct. Spectra-Physics said the agreement prevents Ciba-Geigy from raising its stake beyond 20 pct through Jan 1, 1992, unless another person get more than 10 pct of its voting power.  
ATLANTIC RICHFIELD <ARC> UNIT BUYS TECHNOLOGY. Atlantic Richfield Co said it has acquired exclusive worldwide rights to the methyl methacrylate technology of Texas Eastern Corp's Halcon SD Group affiliate for undisclosed terms. The company said the technology will allow it to introduce a cleaner and more efficient way of making methyl methacrylate, a liquid monomer used to make resins for acrylic sheet, coatings, molded parts and products and plastic impact modifiers. ARCO said it is reviewing options for commercialization of the technology.  
CHAMPION HOME <CHB> SELLS TWO PROPERTIES. Champion Home Builders Inc said it sold the Commerce Meadows 600-site manufactured housing rental community in Commerce Township, Michigan, for a pre-tax gain of about 900,000 dlrs and the Heron Cay 610-site adult community in Vero Beach, Florida, for a nominal pre-tax gain. The company said the sales proceeds will be partly used to reduce debt. It said it is shifting its focus away from the development of communities requiring significant equity and having lengthy projected life cycles. The company also said along with local landowners and investors, it will acquire 33-acre tract Northtowne Meadows in the Toledo, Ohio, area for development into 160 home sites and three acres of commercial land. Terms of the transactions and other parties involved were not disclosed.  
BALL CORP <BLL> COMPLETES ACQUISITION OF VERAC. Ball Corp said it completed the acquisition of privately held Verac Inc. Terms were not disclosed. The company said the San Diego-based defense systems and software development company had sales of about 23 mln dlrs in 1986 and will operate as part of Ball's technical products group.  
GROUP HAS 5.2 PCT OF DISTRIBUTED LOGIC <DLOG.O>. An investor group led by Technology Growth Fund Ltd, an Aspen, Colo., investment firm, said it has acquired 129,000 shares of Distributed Logic Corp, or 5.2 pct of the total, and may try to influence the company. In a filing with the Securities and Exchange Commission, the group, which also includes individual investors and a non-profit foundation, said it bought the stake for 884,414 dlrs as an investment in the Anaheim, Calif., company. But it also said it is "investigating the possibility of seeking to influence the composition of the management" of the company and may increase its stake.  
NETI TECHNOLOGIES <NETFC.O> SELLS SUBSIDIARY. Neti Technologies Inc said it has sold for over four mln dlrs U.S. in cash, notes and the assumption of liabilities its Huron Leasing Inc subsidiary to a group of investors headed by a former Huron executive. The company said the transaction will yield about two mln dlrs in cash, Huron sells, leases and services computer hardware. The transaction is subject to approval by the Montreal and Vancouver Stock Exchange and the arrangement of financing by June 15.  
PACIFICORP <PPW> BUYS BUYS COMPUTER FIRM. PacifiCorp said it acquired Thomas Nationwide Computer Corp for 25 mln dlrs in cash and 15 mln dlrs in deferred consideration depending on the future performance of the company. Thomas Nationwide leases and re-markets new and used International Business Machines Corp equipment, PacifiCorp said. It said Thomas Nationwide will be combined with its Systems Leasing Corp unit in MacLean, Va.  
INVESTMENT FIRM UPS FRANCE FUND <FRN> STAKE. VBI Corp, a British West Indies investment firm, told the Securities and Exchange Commission it raised its stake in France Fund Inc to 1,075,700 shares, or 14.3 pct of the total, from 896,500 shares, or 11.9 pct. VBI said it bought 179,200 France Fund common shares between April 24 and June 2 at prices ranging from 13.000 to 14.125 dlrs a share.  
LYNCH <LGL> PLANS OFFER FOR BECOR <BCW> STOCK. Lynch Corp said it will offer 10.50 dlrs a share in cash, 4.50 dlrs in subordinated debentures and a 1/4 share in a new company for each Becor Western Inc share outstanding. Lynch said its proposed offer "substantially improves" over the offer of 10.45 dlrs a share in cash and 4.00 dlrs of senior sinking fund debentures made by BCW Acquisition Inc, formed by Becor's management. Lynch Chairman Mario Gabelli, who heads a group which owns 12.35 pct of Becor's 16.5 mln outstanding shares, said the Lynch bid "is about one dlr better than the present offer."  Gabelli previously said in a filing with the Securities and Exchange Commission he felt the Becor managment buyout was unfar. The Lynch officer said he was invited by other Becor shareholders to make an offer. Following sale of Becor's aerospace subsidiary in February, the management group led by President William Winter announced plans for a 238.1 mln dlr leveraged buyout. was planning to take Becor for about 238.1 mln dlrs.  A shareholder vote on the buyout offer is scheduled for June four.  
GROUP LIFTS STAKE IN SCANDINAVIA FUND <SCF>. A foreign investment group told the Securities and Exchange Commission it raised its stake in Scandinavia Fund Inc to 3,040,600 shares, or 46.6 pct of the total outstanding, from 2,829,300 shares, or 43.2 pct. The group, which includes Ingemar Rydin Industritillbehor AB, a Swedish firm, VBI Corp, a British West Indies investment firm, and Norwegian investor Erik Vik, said it bought 211,300 Scandinavia common shares since April 30 at prices ranging from 10.000 to 10.625 dlrs a share.  
PAY 'N PAK <PNP> RECEIVES AMENDED PROPOSAL. Pay 'N Pak Stores Inc said it received a revision to one of the two previously disclosed proposals to buy the company. Pay 'N Pak said that the proposal from a leveraged buyout firm had been amended to increase the dividend rate on the cumulative preferred stock to be received by PNP shareholders from 13.5 pct to 17.5 pct. As previoiusly announced, the proposal calls for a transaction in which PNP shareholders would receive a combination of 17.50 dlrs in cash and 2.50 dlrs in liquidation value of cumulative preferred stock for each common share.  Under the other proposal received from Paul Bilzerian, PNP shareholders would receive on a blended basis 16.67 dlrs in cash and 3.33 dlrs in liquidation value of cumulative redeemable preferred stock for each common share, the company said. Under the Bilzerian proposal, the dividend rate on the preferred stock would be set so that in the joint opinion of the financial advisor to Bilzerian and the financial advisor to Pay 'N Pak, the preferred stock would trade at its liquidation value on a fully distributed basis, the company said.  
VIACOM SAYS FEDERAL COURT REJECTS REQUEST TO BLOCK PLANNED MERGER.  VIACOM SAYS FEDERAL COURT REJECTS REQUEST TO BLOCK PLANNED MERGER  
COURT DECLINES TO BLOCK VIACOM <VIA> MERGER. Viacom International Inc said the U.S. District Court for the Southern District of New York denied the motion of <Carsey-Werner Co> for a temporary injunction to block the proposed merger of Viacom with a subsidiary of <National Amusements Inc>. Carsey-Werner is the producer of the Cosby Show.  
AEGON N.V. <AEGN.AS> BUYS LIFE INVESTORS SHARES. AEGON U.S. Holding Corp, a unit of AEGON N.V. of the Netherlands, and Life Investors Inc <LINV.O> said they have purchased about 451,000 shares of Life Investors common stock for 51.61 dlrs per share cash. The purchase is part of an agreement between the two companies made in November 1981, saying that on or before each April 30 between 1983 and 1987 the companies would offer to buy one-sixth of the number of Life Investors' common stock outstanding as of Dec. 31, 1982, not already owned by AEGON. On Dec. 31 1988 they would offer to buy any and all remaining shares.  
WESBANCO <WSBC.O> ACQUIRING BANK OF SISSONVILLE. Wesbanco Inc said its board executed a merger agreement with the <Bank of Sissonville>. When the merger is completed, each of the 50,000 shares of the Bank of Sissonville common stock outstanding will be converted into 2.75 shares of Wesbanco common stock, the company said. The Bank of Sissonville has total assets of 25.5 mln dlrs as of Dec 31, 1986, the company said.  
HOLLLINGER <HLG.TO> PAYING 50 MLN DLRS FOR BUY. Hollinger Inc will pay about 50 mln dlrs cash for its previously reported acquisition of privately owned Unimedia Inc, chairman Conrad Black told reporters after the annual meeting, confirming a published report. Commenting on press reports about the 50 mln dlr price tag, Black said, "That would not be wildly inaccurate," although he declined to disclose the actual cost. Montreal-based Unimedia is Quebec's third largest newspaper group, with three French language daily newspapers in Quebec City, Ottawa and Chicoutimi, Quebec and four printing plants in Ontario and Quebec. Black added that Hollinger would also continue seeking acquisitions of daily newspapers with circulation under 25,000 readers. He said Hollinger was currently talking to about 10 such newspapers in the U.S. where the company currently owns 23 dailies. "There is really no end to the ones that are available," he told reporters, although he added that most remaining acquisition opportunities are in the U.S. He said that Hollinger's 58 pct-owned Daily Telegraph PLC, of London, should become profitable in this year's fourth quarter.  For full-year 1987, the Daily Telegraph could break even or better, said Black, citing major reductions in labor costs and improved technology at the Telegraph, Britain's largest circulation quality daily. The Telegraph lost 13.2 mln Canadian dlrs last year. Daily Telegraph chief executive Andrew Knight told reporters after the meeting that the Telegraph's daily circulation had risen by 25,000 since September to about 1,150,000 on weekdays, despite added competition from the new Independent daily newspaper.  Knight said The Independent was not affecting the Telegraph's growth, but was making inroads into the circulation of other London quality dailies such as The Times and The Guardian. Hollinger chairman Black predicted Hollinger would post 1987 net income of about 55 mln dlrs, or one dlr a share, including extraordinary gains from previous sales of discontinued operations. Hollinger lost 87 mln dlrs or 6.54 dlrs a share last year on fewer average shares and after an extraordinary loss of 52 mln dlrs.  Black told shareholders that first quarter operating earnings on continuing operations amounted to 499,000 dlrs against a year-ago loss of 165,000 dlrs. Revenues on continuing operations rose to 102.1 mln dlrs from 1.5 mln dlrs last year, which did not include Daily Telegraph revenues, he added. Consolidated first quarter figures were not disclosed. He said the Daily Telegraph's first quarter operating loss was sharply reduced from last year.  
PROFESSOR LIFTS BANC TEXAS <BTX> PREFERRED STAKE. A University of Massachusetts finance professor said he raised his stake in Banc Texas Group Inc to 45,340 shares of 1.4625 dlr cumulative preferred stock, or 7.4 pct of the total, from 30,300 shares, or 5.0 pct. In a filing with the Securities and Exchange Commission, Ben Shirley Branch also said he bought 52,025 shares of Class A cumulative convertible preferred stock, or 5.9 pct of the total, for 160,000 dlrs, bringing his total investment in both preferred series to about 330,000 dlrs. Branch said he bought the stock as an investment, but reserved the right to try to influence the company.  
STOCKHOLDERS WON'T PURSUE CONTINENTAL <CUO> BID. Continental Associates, a group of four shareholders who hold about 5.02 pct of of Continental Materials Corp stock, said it will not pursue a tender offer for all of its shares. The shareholders said they were told that Continental Materials directors had no interest in selling the company. Late yesterday, Continental Materials board said it decided not to give further consideration to a "business combination" proposed by the group of St. Louis businessmen.  
INVESTMENT FIRMS HAVE 7.7 PCT OF MIDWAY <MDWY.O>. Two affiliated investment firms told the Securities and Exchange Commission they have acquired 593,000 shares of Midway Airlines Inc, or 7.7 pct of the total outstanding common stock. The firms, Boston-based FMR Corp and Fidelity International Ltd, a Bermuda-based investment advisory firm, said they bought the stake "to acquire an equity interest in the company in pursuit of specified investment objectives...." The firms said they may increase or decrease their stake in the company, but have no plans to seek control of the company or representation on its board.  
WICKES <WIX> COMPLETES PURCHASE. Wickes Cos Inc said it has completed the purchase of Dura Corp for an undisclosed amount. Dura, a supplier of automotive equipment, had annual sales of over 100 mln dlrs.  
BALL CORP <BLL> COMPLETES ACQUISITION. Ball Corp said it completed the purchase of privately held <Verac Inc>, a San Diego defense systems and software development company. Terms of the acquisition were not disclosed. Verac had 1986 sales of about 23 mln dlrs. Verac will operate in San Diego as part of Ball's technical products group.  
FREEDOM <FRDM> TO RECOGNIZE GAIN ON UNIT SALE. Freedom Savings and Loan Association said it will record a net gain of 13.5 mln dlrs on the sale of certain assets of its Freedom Mortgage Co subsidiary to Chase Home Mortgage Corp, a subsidiary of Chase Manhattan Corp <CMB>. Freedom also said it had completed the sale. The company said about 9.5 mln dlrs of the gain will be recnogized in the quarter ending June 30 with the remainder derferred and recognized over the remaining life of the serviced mortgage porfolio.  
AUSTRALIA'S ANSETT TO TAKE 20 PCT OF AMERICA WEST. Australia's <Ansett Airlines> will exercise an option to acquire 20 pct of America West Airlines Inc <AWAL.O> for about 31.5 mln U.S. Dlrs, <Ansett Transport Industries Ltd> managing director Peter Abeles said. Exercise, involving the purchase of about three mln new America West shares for 10.50 U.S. Dlrs each, was scheduled to be finalised in July or August, he said in a statement. Abeles said Ansett would become the largest single shareholder in what he said was the fastest growing airline in the United States. America West is based in Phoenix, Arizona. Under the terms of the option agreement, Ansett would have the right to maintain its 20 pct position in the event of future stock sales, but could not go beyond 20 pct unless so requested by America West, Abeles said. America West would retain the right of first refusal if Ansett offered any of the shares for sale. In addition, Ansett would gain one board seat, he said. Ansett Transport Industries wholly owns Ansett Airlines, one of Australia's two major domestic airlines, and is in turn owned 50/50 by Abeles' international transport group TNT Ltd <TNTA.S> and Rupert Murdoch's News Corp Ltd <NCPA.S>.  
HONG KONG'S DAIRY FARM SAYS IT BIDS FOR 22 PCT OF KWIK. SAVE FOR 146.6 MLN STG  HONG KONG'S DAIRY FARM SAYS IT BIDS FOR 22 PCT OF KWIK SAVE FOR 146.6 MLN STG  
DAIRY FARM BIDS 146.6 MLN STG FOR 22 PCT KWIK SAVE. <Dairy Farm International Holdings Ltd> said in a statement it is making a tender offer for 22 pct of Kwik Save Discount Group Plc <KWIK.L> of Britain for a total 146.6 mln stg. Dairy Farm said it will offer to buy up to 32.58 mln Kwik Save shares at 4.50 stg each. The offer will bring Dairy Farm's stake in Kwik Save to 25 pct from the present 3.5 pct, or 5.25 mln shares. The offer, which will begin on Monday and ends June 30, requires that the shares tendered will bring its stake to at least 15 pct. Dairy Farm said it will finance the acquisition by placing 89 mln shares with affiliate Jardine Strategic Holdings Ltd <JARS.HK> at 5.10 H.K. Dlrs each for a total of 454 mln dlrs. The placement will raise Jardine Strategic's stake in Dairy Farm to 39.75 pct from the current 35.3 pct. It said the Kwik Save purchase will also be financed with a loan from the Hongkong and Shanghai Banking Corp <HKBH.HK>. It did not give the size of the loan but it said it would raise its net bank borrowings to a maximum of 2.2 billion H.K. Dlrs. Dairy Farm said it would reduce its bank borrowings by the proceeds from the previously announced sale of its office building in Sydney for 625 mln dlrs. It will consider raising additional capital, most probably through a placement of convertible preference shares in the Euromarket, it added. Company chairman Simon Keswick said the U.K. Market "offers attractive opportunities for competitively priced food retailers" and that "a strategic investment in Kwik Save offers the best vehicle to pursue those opportunities."  
GOVERNMENT TO SELL 25 PCT OF AIR NEW ZEALAND. The New Zealand Government will sell 25 pct of state-owned <Air New Zealand Ltd> to the public, Civil Aviation minister Richard Prebble said. Prebble said in a statement the government would appoint an adviser to help it decide how the shares should be sold, the timing of any sales and the price. "Clearly there will be a need to gauge the effect of other proposed share issues so as to enter the market at the best opportunity," Prebble said. "We are in no particular rush to sell our shares in Air New Zealand," he said. "Our aim is to maximise the benefit to the taxpayer. If that means waiting for a while, then so be it," Prebble said. He said Air New Zealand expects to release its results soon for the year to March 31 1987. He said he was confident it would post an excellent profit. Prebble said Air New Zealand was successful but its ability to prosper in future was hampered by its wholly-government-owned status. Prebble said access to new sources of capital would increase its ability to expand and develop. This sale announcement follows the public float in March of around 13 pct of the <Bank of New Zealand Ltd>. The government has said it will also float part of the capital of other state-owned operations, including <DFC New Zealand Ltd>, formerly Development Finance Corp of New Zealand Ltd, and Petroleum Corp of New Zealand Ltd.  
FRENCH STATE SELL-OFFS RAISE 52 BILLION FRANCS. The French government's privatisation program, which began late last year, has earned the French State about 52 billion francs to date, the Finance Ministry said. Sources close to Finance Minister Edouard Balladur said the revenues raised from the privatisation program would be used in priority to pay off public debt, which stood at 398.2 billion at the end of 1986. The Ministry said in a communique that the returns included banking group Societe Generale <SGEN.PA>, which began its two-week public flotation last Monday. The government has carried out eight flotations, as well as the private sale of telephone group <Cie Generale de Constructions Telephoniques> (CGCT) since its denationalisation scheme began last December with the sell-off of glass makers Saint-Gobain <SGEP.PA>, it added. The government has pledged to privatise 66 state-owned industrial, banking and insurance companies by 1991. Other companies to be sold to the private sector in the near future are television network TF-1 later this month and banking group Cie Financiere de Suez <FSPP.PA> in the autumn. The ministry said TF-1's forthcoming sell-off meant that a third of the government's programme would have been completed in less than nine months. Balladur on Sunday rejected press and opposition charges that the share prices for privatised companies had been pitched too low. He said that the average premium of shares trading on the Bourse was between 15 and 30 pct over their offer price. This compared with premiums of between 60 and 80 pct on similar share flotations in Britain.  
CSR DECLARES PIONEER SUGAR BID UNCONDITIONAL. CSR Ltd <CSRA.S> said it had declared unconditional its takeover bid for <Pioneer Sugar Mills Ltd> following Pioneer's recommendation that shareholders accept. This meant Pioneer shareholders would be paid for all shares tendered within 14 days, CSR said in a statement. CSR's statement follows Industrial Equity Ltd's <INEA.S> disclosure yesterday that it had built up a 9.8 pct stake in Pioneer at 2.54 dlrs a share, topping CSR's cash bid of 2.50. CSR is also offering one share, currently worth 4.04 dlrs, plus 1.20 cash, for every two Pioneer shares, which values Pioneer at 2.62 per share. It holds about 33 pct of Pioneer.  
SANDVIK, DIAMANT BOART FINALISE DRILLS MERGER. Sweden's Sandvik AB <SVIK.ST> and Diamant Boart SA of Belgium, in which Societe Generale de Belgique <BELB.BR> holds an indirect 52 pct stake, have finalised negotiations on merging oil and gas drilling tool activities, officials of both companies said. Staffan Paues, President of the new Brussels-based joint venture company Diamant Boart Stratabit SA (DBS), told a news conference that the merged firm would be able to offer products for all types of drilling operations. He said there were already signs that a slow recovery from recession was under way in the oil and gas industries. "Stability in oil prices should lead to renewed investment" Paues said. DBS, which Paues said began operations today, brings together Sandvik's wholly-owned U.S. Subsidiary Strata Bit Corp of Houston and Diamant Boart's petroleum activities in Europe, North America, the Middle and Far East and Africa. Paues said the merger was a direct result of the sharp fall in oil prices 18 months ago which led oil firms to cut back exploration activities. Officials said the complementary character of the two firms' operations was a further reason.  
THOMSON GRAND PUBLIC TAKES OVER THORN EMI'S AUDIOVISUAL. DIVISION - THOMSON  THOMSON GRAND PUBLIC TAKES OVER THORN EMI'S AUDIOVISUAL DIVISION - THOMSON  
THOMSON TAKES OVER THORN EMI AUDIOVISUAL. Thomson Grand Public, the subsidiary of Thomson SA <THMP.PA>, has taken over the audiovisual consumer goods division of British group Thorn EMI, Thomson Grand Public chairman Pierre Garcin said. The cost of the deal, signed late yesterday, is around 90 mln stg and Thomson will finance 50 mln of this from its equity. Thorn EMI is a leader in the British audiovisual market with a turnover last year of 300 mln stg. Garcin said the new acquisition would substantially increase Thomson's turnover in the sector.  
JWT GROUP <JWT> SUES WPP GROUP PLC. JWT Group Inc said it filed a suit against <WPP Group Plc> to enjoin the company from continuing its tender offer. The company said it charged that former JWT Group unit executive John Peters has breached his fiduciary duty by disclosing confidential information about the company and its clients. The company said the suit, filed in New York State Supreme Court, seeks to halt the "ongoing misuse and misappropriation of highly confidential and proprietary information concerning JWT and its clients. The defendants in the suit are WPP Group and its units and Peters, who until January 29 was a director of J. Walter Thompson Co, JWT Group's main subsidiary and its president and chief operating officer. JWT said it asked the court to enjoin the defendants from acquiring any further JWT stock, make them return all confidential and proprietary information and to disgorge all profits or other gains. The company said it also asked the court to award JWT unspecified damages.  
JWT GROUP <JWT> GRANTS GOLDEN PARACHUTES. JWT Group Inc disclosed in a filing with the Securities and Exchange Commission that it awarded so-called "golden parachutes" to 26 top officers. The company said it granted the special bonuses, which take effect only if an executive is fired within two years of a successful takeover, on June 8. It granted 25 of the officials a severance payment of just under three times their annual compensation if they are fired after a takeover. For chairman Don Johnston, the payment was limited to twice his annual compensation. JWT approved additional lump-sum payments of one year's compensation to an unspecified number of other highly paid company officials. The company also altered its employee retirement and stock incentive plans, to assure continued protection and benefits for employees in the event of a hostile takeover. The company did not disclose the cost of the changes made in the severance, retirement or stock plans.  
UNILEVER DECLINES COMMENT ON GILLETTE BID RUMOURS. A spokesman for Unilever Plc <UN.AS> declined to comment on market rumours that it may be considering a bid for the U.S. Health care group The Gillette Co <GS.N>. Gillette shares are traded on the over-the-counter market in London and this morning stood one dollar higher at 38 dlrs in response to the bid speculation. Unilever dipped 33p to 3,275 in a generally depressed U.K. Market. Most analysts dismissed the rumours saying it was an old story, and one commented that it was "utter rubbish," adding he thought Unilever would not be interested in Gillette. Gillette shares rose sharply at the beginning of the month on Wall Street rumours that Sir James Goldsmith was building a stake in the company. Gillette has been the subject of repeated rumours since Ronald Perelman, chairman of the Revlon Group Inc <REV>, made an unsuccessful bid for the company last year.  
SERVICE RESOURCES <SRC> ENDS SORG <SRG> BID. Service Resources Corp said it has withdrawn and terminated its 23 dlr per share takeover offer to Sorg Inc because Sorg failed to respond to the bid. It said, as Sorg's largest single shareholder, it will evaluate all its options, including making a further offer to Sorg or disposing of some or all of its Sorg shares.  
HALCYON HAS STAKE IN RESEARCH-COTTRELL <RC>. Halcyon Investments, a New York firm, reported a 6.9 pct stake in Research-Cottrell Inc. Alan Slifka, a partner in Halcyon, told Reuters the shares were purchased for investment purposes but declined further comment. On June 8, Research-Cottrell said it had entered into a definitive agreement to be acquired by R-C Acquisitions Inc for 43 dlrs per share. Research-Cottrell closed at 44-1/4 today, unchanged from the previous close.  
ALLEGIS <AEG> MEETS WITH UNITED EMPLOYEES GROUP. A spokesman for a group of United Airlines employees, who oppose the attempted takeover of United by the Airline Pilots Association, said he met with the new chairman of Allegis, Frank Olson. William Palmer, the group's spokesman, which claims to speak for thousands of United employees, said the meeting with Olson was "positive and friendly," but no future meeting dates were set. In April the pilots union offered to buy out United, an Allegis subsidiary, through an employee stock ownership plan.  
HARCOURT BRACE <HBJ> CALLS SPECIAL MEETING. Harcourt Brace Jovanovich Inc said it has called a special meeting for July 23 for a vote on an increase in authorized common shares to 100 mln from 50 mln, an increase in preferred shares to 150 mln from 2,500,000 and a provision allowing the payment of preferred dividends in stock or property as well as cash. The company said June 29 will be the record date for the meeting.  Harcourt which is fighting off a takeover bid from <British Printing and Communication Corp PLC>, has declared a special dividend on common stock of 40 dlrs in cash and 12 pct preferred stock with a market value of 10 dlrs per share. The special dividend is to be paid July 27.  
FIRST DATA MANAGEMENT <FDMC.O> COMPLETES MERGER. First Data Management co Inc said it has completed a merger into Firsst Data MAnagement Holding co following sharehoplder approval. It said each 100 shares will be exchanged for 1,000 dlrs principal amount of 14.375 pct senior subordinated debentures due June 15, 2002.  
MR. ROOTER <ROOT.O> RESCINDS UNITED WESTERN PACT. Mr. Rooter Corp said it rescinded a recent agreement calling for <United Western Energy Corp> to to buy a majority of Mr. Rooter's stock for four dlrs a share. The company said it has also demanded repayment of a 150,000 dlr loan made to United Western. Since announcing the agreements, Mr. Rooter said, it discovered additional information relating to United Western and the unaffiliated privately held corporation which had guaranteed all of United Western's obligations under the agreements. Mr. Rooter said the agreements were rescinded d"in light of this additional information," without providing details. It said talks are in progress with United Western with regard to the repayment terms of the loan.  
GILLETTE SAYS REVLON ASKED ITS BOARD TO CONSENT TO 40.50. DLRS PER SHARE OFFER  GILLETTE SAYS REVLON ASKED ITS BOARD TO CONSENT TO 40.50 DLRS PER SHARE OFFER  
LIBERTY FINANCIAL SAYS IT AGREES TO BE ACQUIRED BY. EQUIMARK FOR 48 DLRS PER SHARE  LIBERTY FINANCIAL SAYS IT AGREES TO BE ACQUIRED BY EQUIMARK FOR 48 DLRS PER SHARE  
LOMAS AND NETTLETON <LNF> TO MAKE ACQUISITION. Lomas and Nettleton Financial Corp said it has agreed in principle to acquire Houston discount brokerage firm Texas First Brokerage Services Inc for undisclosed terms, subject to regulatory approvals. It said completion is expected by July 31.  
LIBERTY FINANCIAL ANNOUNCES MERGER WITH EQUIMARK. Liberty Financial Group Inc, the parent of Liberty Savings Bank said it has signed a definitive agreement to be acquired by Equimark Corp <EQK>, the parent of Equibank, for 48 dlrs a share of Liberty. The transaction is structured as a merger of Liberty with a duly-formed unit of Equimark, the company said. Liberty shareholders will receive about 48 dlrs per share uopn the merger, the company said. According to the companies, the acquisition is contingent upon the approval of Liberty's shareholders and the appropriate regulatory authorities.  Liberty said the acquisition of its unit, Liberty Savings Bank, by Equimark Corp, will result in the bank operating as a separate wholly owned unit of Equimark. Charles Cheleden, chairman and president of Liberty Financial and Liberty Savings, will continue as president and chief executive officer of Liberty Savings, headquartered in Horsham, Pa., the company said. Liberty said it feels that the price of 48 dlrs in cash per share is attractive and that it has advised by Shearson Lehman Brothers that the price is fair.  
GILLETTE <GS> GETS OFFER FROM REVLON <REV>. Gillette Co said Revlon Group made an unsolicited request, asking the Gillette board to allow Revlon to make a cash offer for all Gillette shares of at least 40.50 dlrs per share. Gillette said consent for the bid is required under a standstill agreement between Revlon and Gillette before Revlon can make any move on Gillette's stock. In November 1986, Revlon made an unsolicited offer for Gillette shares, Gillette said. Subsequently, Revlon withdrew its offer, sold back to Gillette the shares it owned at that time and entered into the standstill agreement. The Gillette board of directors has a regularly scheduled meeting this afternoon, and Gillette said it anticipates making a statement after that meeting.  
BECOR WESTERN <BCW> TALKS TO FOURTH BIDDER. Becor Western Inc said it is talking with a possible fourth bidder for the company. The company also said Lynch Corp <LGL> has renewed its offer for Becor which was withdrawn last week. Talks with the possible bidder are expected to be concluded shortly, Becor said, adding its board will evaluate all then existing offers at that time. In the meantime, the company said, it plans today to adjourn further its meeting of stockholders to June 30. That meeting was called to act on a merger agreement calling for a buyout by BCW Acquisitions Inc. The third identified Becor suitor is <Davis Mining and Manufacturing Inc>. In Fairfield, N.J., Lynch said its latest proposal calls Lynch to own 75 pct of Becor's stock and Becor holders to retain the other 25 pct. Peviously, Lynch would have held about 25 pct, with Becor holders receiving 25 pct and Becor management about half. Lynch said the proposal was changed because it believes Becor's management "needs more guidance in terms of financial structuring.  
S. AND W. BERISFORD WANTS TO STAY INDEPENDENT. S.And W. Berisford Plc <BRFD.L>, which has attracted takeover bids, is making every possible effort to remain independent, deputy chairman Henry Lewis said after the company announced interim results. "We've taken specific steps to strengthen ourselves for this purpose," he added, referring to management changes and a corporate strategy of concentrating on four business sectors. Berisford aims to produced balanced earnings growth from a combination of commodities, property, financial services and food. Its industrial division, with assets of about 90 mln stg including debt, is being reviewed and parts may be sold.  
USAIR <U> SAYS DOT PUBLIC COUNSEL BACKS MERGER. USAir Group Inc said the U.S. Department of Transportation's Office of Public Counsel has urged that expedited non-hearing procedures be used in its proposed acquisition of Piedmont Aviation Inc <PIE>. The company said that America West Airlines Inc <AWAL.O> was the only party voicing opposition to the acquisition.  The Department of Transportation had asked parties to submit statements by June 17 either supporting or opposing the acquisition. USAir said it and Piedmont again requested expedited approval for the acquisition. The company said the Office of Public Counsel could find no evidence that the acquisition would substantially lessen competition in any market.  
FREEDOM FEDERAL <FRFE.O> SEEKS BUYER. Freedom Federal Savings Bank said it hired Salomon Brothers Inc to solicit offers for the purchase of the bank as part of an ongoing review of methods to enhance shareholder value. Freedom Federal operates 15 retail branch banks and had 1986 year end assets of about 733 mln dlrs. "There is no assurance the bank will receive acceptable offers or be sold, but we feel this is a prudent step to take at this time," the bank said.  
ARCO <ARC> SPIN-OFF SEEN AT 500 MLN DLRS. Atlantic Richfield Co, considering a spin-off of a 20 pct interest in its chemical operations, could gain about 500 mln dlrs from the deal, industry analysts estimated. Yesterday ARCO's stock jumped as much as five points on rumors it was spinning off the chemical operations. Based on about 183 mln outstanding shares, the market in its frenzy was valuing the spin-off at about 900 mln dlrs, analysts said. Atlantic Richfield, aware of the rumors, issued a statement around mid-day that it was considering a sale of only 20 pct of the unit, leading investors to take profits. After the announcement, the company's stock retreated, closing at 93-7/8, up 1-3/8. Today it was off 1/4. "It was a smaller deal than expected and somewhat disappointing," said analyst George Baker at Smith Barney. He said rumors of the spin-off had been around "for a couple of days." Baker said the unit was very profitable but it wasn't getting the type of exposure Atlantic Richfield sought, and its value was not reflected in the company's stock price. Industry analyst Richard Pzena of Sanford C. Bernstein said the unit had operating earnings of 132 mln dlrs last year and he expected it to earn about 175 mln dlrs this year. Based on a multiple of 17 times earnings--which Pzena says chemical companies now sell for--the entire unit is worth about three billion dlrs, putting the 20 pct interest at around 500 to 600 mln dlrs. Pzena said he thought the company was selling the stake because chemical margins had peaked, and he speculated the company would use the proceeds to pay down debt. But he added the possibility remained the deal would fall through. Yesterday, ARCO said the proposal had not yet been presented to its board. The chemical unit last year had revenues of 1.9 billion dlrs.  
HOLLINGER <HLG.TO> COMPLETES UNIMEDIA TAKEOVER. Hollinger Inc said it completed the previously reported acquisition of privately held Unimedia Inc, the owner of three French language daily newspapers and four printing plants in Ontario and Quebec. The company, which owns 58 pct of (Daily Telegraph Plc) said it named former Carling O'Keefe Ltd chief executive Pierre Des Marais as chief executive of La Societe Media Quebec, the unit acquiring Unimedia. It said his appointment is effective July 2.  
BECOR WESTERN <BCW>AGAIN ADJOURNS HOLDER MEETING. Becor Western Inc said its reconvened shareholders meeting has been adjourned to 1000 CDT June 30. The company had previously announced plans to again adjourn the meeting following receipt of a renewed offer from Lynch Corp <LGL> yesterday. The meeting was originally convened on June four when shareholders approved the sale of Becor's Western Gear Corp subsidiary before adjourning. The remaining matter to be presented is the proposed acquisition of Becor by BCW Acquisition Inc, now one of four offers for the company./  
SOUTHMARK <SM> ACQUIRES BERG VENTURES. Southmark Corp said it acquired Berg Ventures Inc, which manages 84 apartment complexes with over 18,000 units and 12 shopping centers stretching from New Jersey to Florida that are controlled or affiliated with Berg Harmon Associates. Terms were not disclosed. Southmark said the acquisition makes it the nation's largest apartment management firm with over 100,000 units under its wing. Southmark also said it has become the managing partner of Berg Harmon Associates. Over 3,000 Berg Harmon Limited partners have made capital investments of over 300 mln dlrs in the properties now managed by Southmark.  
MAY <MA> WON'T BUY ALLIED'S DEY BROTHERS STORES. May Department Stores Co said it terminated an agreement with Allied Stores Corp to buy from Allied the four Dey Brothers Stores in Syracuse, N.Y. May and Allied said conditions necessary for the closing were not met. May had planned to make the acquisition an expansion of its Sibley's Department Store Co, which operates in Syracuse, Rochester and Buffalo, N.Y.  
XEROX <XRX> AFFILIATE TO SELL S.AFRICAN UNIT. Xerox Corp's affiliate Rank Xerox Ltd said it signed a definitive agreement to sell its Rank Xerox South Africa Pty Ltd affiliate to Altron Group <ALRN.O>, for undisclosed terms. Xerox said the preliminary agreement to sell the affiliate to Fintech, an Altron unit, had been reached in March. Xerox said completion of the sale awaits approval of Fintech shareholders and a review by the Johannesburg Stock Exchange. Rank Xerox South Africa was founded in 1964 as a wholly owned unit of Rank Xerox, the Xerox affiliate that manufactures and markets Xerox products in the Eastern Hemisphere. Rank Xerox said that of the 800-man workforce of Rank Xerox South Africa, 40 pct are black, colored or Asian. The company will become a wholly owned unit of Altron.  
ALLEGHENY INTERNATIONAL <AG> SELLS THREE UNITS. Allegheny International Inc said it has sold its Chemetron Railway Products Inc, True Temper Railway Appliances Inc and Allegheny Axle Co units to newly-formed Chemetron Railway Products Inc for undisclosed terms. It said the new company was formed by senior management of the three railway product units and Kleinwort Benson Group of London.  
GENCORP SAID AGREEMENT TO SELL RKO PICTURES TERMINATED.  GENCORP SAID AGREEMENT TO SELL RKO PICTURES TERMINATED  
LEASEWAY TRANSPORTATION <LTC>COMPLETES UNIT SALE. Leaseway Transportation Corp said it has completed the previously-announced sale of its Leaseway of Puerto Rico Inc subsidiary to Caguas Central Federal Savings Bank for undisclosed terms. The company said the sale satisfied a condition for its proposed acquisition by an investor group led by Citicorp <CCI>.  
MAGELLAN SETS MERGER WITH BALZAC INVESTMENTS. <Magellan Corp> said its shareholders approved the merger of Magellan with <Balzec Investments Inc>, a privately held company based in Dallas. Magellan, a company without operations that was formed to acquire an operating entity, said it plans to engage in the development and marketing of a battery charger product owned by Balzac. Magellan did not disclose the terms of the agreement. Following the merger, Balzac shareholders will hold 80 pct of the outstanding stock of Magellan, the company said.  Magellan said it will be the surviving corporation following the merger. The companies said they expect the merger will occur after the declaration of effectiveness of an amendment to Magellan's registration statement relating to its common stock purchase warrants and the underlying shares.  
GENCORP <GY> SAYS RKO UNIT SALE TERMINATED. GenCorp said its agreement to sell its RKO Pictures subsidiary to a management group has been terminated because the group could not raise the necessary financing. The company said it will again seek buyers for the unit and its library of over 750 films.  
PENNWALT <PSM> TO MAKE ACQUISITION. Pennwalt corp said it has agreed in principle to acquire a line of fungicides, insecticides and herbicidesand related manufacturing facilities from Le Raffineries de Soufre Reunies of Marseilles for undisclosed terms, subject to approval by bothe boards and government authorities. The company said the acquired products are sold mostly in FRance for use on grapevines, wheat and sugar beets and sales are about 40 mln dlrs annually.  
LEADER DEVELOPMENT <LDCO.O> MERGER APPROVED. Leader Development Corp said shareholders at the annual meeting approved the acquisition of privately-held Clinton American Corp and two related partnerships for 3,450,000 common shares, with the transaction to be accounted for as a pooling of interests. The company said Clinton president F. Daniel Ryan will become president of Leader.  
CRANE <CR> ACQUIRES ASSETS OF MARLEY UNIT. Crane Co said it acquired certain assets of Chicago Heater Co Inc, a wholly owned subsidiary of the <Marley Co>. The terms of the transaction were not disclosed. Chicago Heater will be intergrated with Crane's Cochrane Environment Systems division, the company said.  
PENGO <PGO> TO SELL SOME WIRELINE OPERATIONS. Pengo Industries Inc said it has agreed to sell its Wireline Products Manufacturing Division in Fort Worth, Texas, Wireline Services Division operations in several locations and Pengo International Inc subsidiary to John Wood Group PLC for undisclosed terms. The company said the Wireline Services operations being sold are in Lafayette, Houma and Harvey, La., Alvin, Odessa and Longview, Texas, and Moore, Okla. Pengo said its Kuykenball Slickline operation in Moore and surplus wireline equipment operations in fort Worth and Cleburne, Texas, will be sold separately.  
MAGIC YEARS <KIDS.O> TO ACQUIRE THREE CENTERS. Magic Years Child Care and Learning Centers Inc said it signed a letter of intent to acquire three profitable day care centers in south central Pennsylvania for a total price of 350,000 dlrs. The three privately owned centers had aggregate revenues of 474,000 dlrs in 1986, with profits of six thousand dlrs, the company said. The transaction is scheduled to close in early July, the company said.  
CBC BANCORP TO BE ACQUIRED BY UNION PLANTERS. <CBC Bancorp Inc> said it will be acquired by the Memphis-based Union Planters Corp <UPCM.O> in a merger agreement. Details were not disclosed. CBC, which is the holding company which owns Cookeville's Citizens Bank, said it has signed an agreement which would merge CBC with Union, which has 2.2 billion dlrs in assets. According to CBC, Union reported shareholders equity of nearly 190 mln dlrs for the period ending March 31. CBC said the merger will not affect Citizens Banks' name, management, board of directors or employees.  
TIE/COMMUNICATIONS <TIE> RENEWS AGREEMENTS. TIE/Communications Inc said it has renewed agreements to sell its GTE Corp <GTE>, Bell Atlantic Corp <BEL>, NYNEX Corp <NYN> and US West Inc <USW> for two years. The company is providing small to mid-siezed key telephone systems to GTE and key systems, hybrids and DATA STAR PABX systems to the others.  
GILLETTE <GS> SEEN OBJECT OF GLOBAL BIDDING WAR. Ronald Perelman, head of Revlon Group Inc <REV>, may be trying to ignite a bidding war for Gillette Co that could draw some big international players and in the process make a lot of money for himself, Wall Street analysts said. Several hours before a regularly scheduled board of directors meeting, Gillette disclosed that Perelman requested consent of its board for an offer of at least 40.50 dlrs per share. Perelman needed the consent because he agreed in November not to buy stock for 10 years without permission. "I think Ronald Perelman is less interested in Gillette and more interested in putting Gillette into play because he stands to make a ton of money," said Andrew Shore, analyst at Shearson Lehman Brothers Inc. "In play" is a term used on Wall Street to describe what happens when a company becomes an unwiling takeover target. Shore noted that according to the 1986 agreement Revlon gets paid if there is any acquisition of Gillette through November of this year at a price higher than 29.75 dlrs per share. Gillette rose three to 40 today, following a gain of three yesterday. The agreement would be calculated on the basis of Perelman's previous holding of 18.4 mln shares, adjusted for a split. For example, a deal between Gillette and some other company at 44 dlrs per share would make Revlon richer by 262 mln dlrs under the formula. Neither Perelman nor his spokesmen returned telephone calls seeking comment. "Revlon stands to make a substantial amount of money if someone else takes over Gillette," said Analyst Deepak Raj of Merrill Lynch and Co. "I'm not saying that is going to happen but Gillette is an undervalued stock with a breakup value of 45 dlrs per share." Shore of Shearson Lehman said there are a couple of reasons why Perelman may not be really interested in acquiring Gillette. He said Perelman, in the process of taking Revlon private after acquiring control of the cosmetics company two years ago, probably wants to concentrate on improving Revlon's operations. "He's trying to overhaul and improve the image of the dearptment store business." Another reason is that Revlon has recently made two other acquisitions. Under those circumstances, Shore would not be surprised if some company such as Unilever plc <UN.AS> or Procter and Gamble Co <PG> decided to take a look at Gillette. Shore mentioned half a dozen other potential buyers for Gillette including Sir James Goldsmith, Hanson Trust plc <HAN>, RJR Nabisco Inc <RJR>, American Brands Inc <AMB> and Ralston Purina Co <RAL>. "Perelman is trying to put the company in play," said a Wall Street arbitrageur. "He gets to share in the upside if the company is sold." Another arbitrageur said he expects Gillette to resist Perelman's overture. "I can't see the board consenting, what has changed between November and now," he said.  Another arbitrageur said he was not sure what was going on. "Perelman never does anything without a fair amount of calculation," he said. But he added, "The Gillette board has to be careful. They just can't say no or they'll be sued by shareholders." Gillette's board was still meeting at 1700 EDT, three and one-half hours after the scheduled starting time. According to a copy of Perelman's letter released by Gillette, he would be prepared to sign a defnitive merger agreement without any financing condition. He said Citibank N.A. is his lead lender and First Boston Inc is his financial adviser.  
NOVA CORP SAYS IT IS CONSIDERING A TAKEOVER BID FOR DOME. PETROLEUM  NOVA CORP SAYS IT IS CONSIDERING A TAKEOVER BID FOR DOME PETROLEUM  
CARTER HAWLEY <CHH> SETS RECORD DATE FOR VOTE. Carter Hawley Hale Stores Inc said it has set June 29 as the record date for shareholders voting on the company's proposed restructuring at its annual meeting. The company has yet to set a date for the meeting, but has said it will be held before the end of August. Under the proposal, Carter Hawley would split into a specialty store company and a department store company. Shareholders would get 17-dlrs in cash and a share in each of the two new companies for each existing common share they hold. The restructuring was announced in December, after Carter Hawley rejected a buy-out offer by Retail Partners.  
ALLEGHENY <AI> SELLS THREE INDUSTRIAL UNITS. Allegheny International Inc said it sold three of its industrial units which served the railroad industry to <Chemetron Railway Products Inc>, a senior management group of Allegheny. Terms of the transaction were not disclosed. Included in the sale were Chemetron Railway Products, True Temper Railway Appliances Inc and Allegheny Axle Co, the company said. The three units include 12 plants throughout the U.S., the company said.  
NOVA <NVAA.TO> CONSIDERING BID FOR DOME <DMP>. Nova Corp is considering a takeover bid for Dome Petroleum Ltd, either alone or as part of a consortium, Nova chairman Bob Blair said. "We are thinking about making an offer to Dome or Amoco (Canada Petroleum Co Ltd) or the creditors," Blair told reporters before the annual meeting. Amoco Canada is a unit of Amoco Corp <AN>, which has made a 5.2 billion-dlr acquisition offer for Dome. "There is ongoing, serious thought applied to Dome in Nova and in Husky, but no decision of substance as to future action has been taken in either company," Blair said. Nova owns 43 pct of Husky Oil Ltd <HYO.TO>. Blair also said that Nova has made no decision as to whether it would want to be lead partner in a joint purchase of Dome. He added that some of the discussions with other parties about Dome included TransCanada PipeLines Ltd <TRP>, but refused to name the other participants.  
INVESTMENT FIRM RAISES TVX <TVXG.O> STAKE. WEDGE Group Inc, a Houston investment firm, said it raised its stake in TVX Broadcast Group Inc to 682,419 shares, or 15.1 pct of the total outstanding common stock, from 559,219 shares, or 12.4 pct. In a filing with the Securities and Exchange Commission, WEDGE said it bought 123,200 TVX common shares at prices ranging from 8.00 to 10.625 dlrs a share.  
GROUP RAISES NASH FINCH <NAFC.O> STAKE. A group including members of the Sobey family of Nova Scotia and Empire Company Ltd, said it raised its stake in Nash Finch Co to 442,498 shares, or 8.6 pct of the total outstanding, from 374,498 shares, or 7.3 pct. In a filing with the Securities and Exchange Commission, the group said it bought 68,000 Nash Finch common shares between April 7 and June 17.  
SQUIBB <SQB> SAID NOT INTERESTED IN BUYING CETUS. Robert Fildes, president and chief executive of Cetus Corp <CTUS.O>, told Reuters that Squibb Corp is not interested in buying Cetus. Earlier the companies said Squibb would buy from Cetus a five pct equity postion in Cetus for about 40 mln dlrs. "This is not an attempt by Squibb to become a major majority holder in Cetus," Fildes told Reuters in an interview. "Squibb has not approached us with any indication that they want to acquire us and we wouldn't be interested in that kind of arrangement," said Fildes. Squibb could not be reached to comment on the late comments by Fildes. Squibb is Cetus' first pharmaceutical partner and the only one to own an equity position in Cetus. Eastman Kodak Co <EK> and W.R. Grace <WR> both have joint ventures with Cetus, but neither owns an equity position in the company, said Fildes. Cetus has a venture with Kodak to develp diagnostic products and with Grace to develop agricultural products. Earlier, Squibb and Cetus announced in a joint statement an agreement in principle to form a joint venture to develop new biotechnology products in several fields.  As part of the deal Squibb will license several of Cetus' anticancer agents, including interleukin-2, in development. Squibb will sell the drugs only in Japan and other markets but not in North American and Western Europe. "We wouldn't have done this deal had it not been understood that Cetus wants to build its own fully integrated business in North America and Europe," said Fildes. He said Squibb was the good partner because Squibb has a major joint venture in Japan and has sales capabilities of its own in that market.  Fildes said Cetus has shunned licensing arrangements with pharmaceutical companies because it wanted to build its own business. Many large corporations have invested in small biotech firms. But Squibb's investment in Cetus is the first it has made in biotechnology. Fildes said that was attractive to Cetus because it wanted a partner that didn't have a relationship with a large number of other biotechnology companies."  Fildes said his strategy was to have partners in non drug areas like diagnostics and agriculture, but to "keep the biggest developments in anticancer drugs to ourselves." Fildes said the partnership with Squibb would be used to broaden the company's reach in such big money making areas as the cardiovascular, anti-infective and the anti-inflammatory markets. Squibb is also investming 75 mln dlrs in Cetus' research over the next five years.  "Squibb is putting up over 75 mln dlrs in research and development to make it happen, while the equity position part of the package is simply to demonstrate the seriousness of this partnership," said Fildes.  
MITSUI BUYS FIVE PCT STAKE IN U.S. CHIP MAKER. Mitsui and Co Ltd <MITS.T> paid 1.5 mln dlrs in early May for a five pct stake in <Zoran Corp>, a California-based maker of large scale integrated circuits (LSI) with computer graphic, communications and medical applications, a Mitsui spokesman told Reuters. He said the two firms will form a marketing company in Japan as early as next year, although details of the joint venture are not yet fixed. Mitsui expects last year's 10 billion yen Japanese LSI market to grow quickly. Zoran was founded in 1981 and now has about 100 employees, he said.  
Sainsbury's says it taking control of Shaw's Supermarkets. for 30 dlrs a share  Sainsbury's says it taking control of Shaw's Supermarkets for 30 dlrs a share  
SAINSBURY'S TAKING CONTROL OF SHAW'S SUPERMARKETS. J Sainsbury Plc<SNB.L> said it agreed to take control of the U.S. Shaw's Supermarkets Inc through a combination of share purchases and a tender offer at 30 dlrs a share. Sainsbury bought about 21 pct of the stock in 1983. It said its U.S. Subsidiary, Chene Investments Inc, bought 2.55 mln common shares from the controlling Davis family yesterday at 30 dlrs a share for 76.5 mln dlrs, lifting its stake to 49.4 pct. A tender offer for the outstanding shares will be launched, also at 30 dlrs a share for a maximum further cost of 184.4 mln. The Shaw's Board and the Davis family has agreed to accept the offer, thus assuring Sainsbury's a total holding of 74.0 pct. The company had allotted 20.18 mln new ordinary shares to <Warburg Securities Ltd> which it said would be sufficient to finance about 188 mln dlrs of the maximum 261 mln dlrs payable. Shaw's operates a chain of 49 supermarkets in Massachusetts, Maine and New Hampshire which in 1986 produced sales of 1.1 billiob dlrs and pretax profit of 31.1 mln. At the end of 1986 it had net assets of 88 mln dlrs. Last September, Sainsbury's increased its stake in Shaw's to 28.5 pct. In the year to March 21, it reported a rise in pretax profit to 246.9 mln stg from 192.7 mln on sales that increased to 4.04 billion from 3.58 billion. Sainsbury shares had fallen five pence before the announcement to 590p from last night's close but were unmoved by news of the deal.  
BPCC PLANNING SALE OF PACKAGING OPERATIONS. The British Printing and Communication Corp Plc<BPL.L> is considering selling its specialist packaging and labelling operations, a spokeswoman said. She gave no dates or prices for the transaction but said the units would be sold by negotiation. She declined to give any turnover or profit figures for the packaging and labelling operations, beyond saying that they were very profitable. They formed a self-contained part of the overall group, she said. Analysts said the packaging and labelling division could be sold for up to 150 mln stg. Earlier this week group chairman Robert Maxwell also said it expected to float its Mirror group newspaper subsidiary, bought from  Reed International Plc <REED.L> for 100 mln stg in 1984. The spokeswoman said that BPCC intended to keep a majority share in the newspaper group if it was floated. BPCC is currently locked in legal battles resulting from its attempt to take over U.S. Publisher Harcourt Brace Jovanovich Inc <HBJ>. Earlier this week, BPCC launched a two-for-three rights issue to raise 640 mln stg and said the money raised would enable it to renew its assault on Harcourt. It has also expressed interest in Dutch publisher Kluwer NV <KLUW.AS>.  
FIDELCOR <FICR.O> BUYS NEW ENGLAND <BKNE.O>STAKE. Fidelcor Inc said it has acquired a substantial portion of the assets of Bank of New England Corp's Lazere Financial Corp subsidiary for undisclosed terms. The company said the transaction includes most of Lazere's loan portfolio and other assets, including Lazere's Miami office.  
CHRYSLER AGREES TO ACQUIRE ELECTROSPACE SYSTEMS FOR 367. MLN DLRS  CHRYSLER AGREES TO ACQUIRE ELECTROSPACE SYSTEMS FOR 367 MLN DLRS  
CHRYSLER <C> TO TENDER FOR ELECTROSPACE <ELE>. Chrysler Corp said Electrospace Systems Inc agreed to be acquired under a merger agreement in which Chrysler will tender 27 dlrs a share for 100 pct of the Richardson, Texas-based defense electronics contractor. It said total cost to Chrysler to buy all of the outstanding stock would be about 367 mln dlrs. Electrospace Systems designs, develops and installs communications and electronic  systems and equipment for the specialized needs of military and commercial customers worldwide. Chrysler said Electrospace will help its Gulfstream operations grow in military and commercial aircraft sales. But it said there are no plans to merge Gulfstream and Electrospace. Rather, they will operate as "sister companies," it said. Chrysler said its tender offer is expected to begin by June 25 and will be managed by First Boston Corp. For the fiscal year ended April 3, 1987, Electrospace Systems had earnings of 10 mln dlrs on sales of 191 mln dlrs. The company employs 2,500 people. About 92 pct of its sales were to the military.  
DAVIS MINING REVISES OFFER FOR BECOR <BCW>. Becor Western Inc said <Davis Mining and Manufacturing Inc> has amended its offer for the company. Becor said the cash portion of the offer remains unchanged at 10.45 dlrs a share but the principal amount of debentures would increase to 3.50 dlrs from 3.00 dlrs a Becor share. The amended offer also includes 1.50 dlrs face value of the surviving corporation's 12.5 pct nonvoting cumulative preferred not included in the previous offer, and reduces the amount of the surviving corporation's common to be held by present shareholders to 55 pct from 60 pct. Becor Western the amended Davis Mining offer is suject to confirmation of certain due diligence information. Becor also said discussions continue with one other possible bidder which it still has not been identified. Again, the company said it expects discussions with the other possible investor to conclude shortly. At that time, the board will evaluate all the then existing offers for Becor, it added.  
MTECH <MTCH> HAS 33,467 COMMERCIAL SHARES. MTech Corp said it has received 33,467 shares of Commercial Resources Corp in response to its 10.25 dlr per share tender offer for all 150,000 shares. The company said it has extended the offer until July 2. It was to have expired yesterday.  
NAT'L COMPUTER <NLCS.O> TO BUY DATA CARD STAKE. National Computer Systems Inc said it agreed to acquire Deluxe Check Printers Inc's <DLX> 38 pct stake in Data Card Corp. National Computer said it plans to issue 45 mln dlrs in five year subordinated convertible debentures to purchase the 3,749,401 shares of Data Card from Deluxe. Completion of the proposed transaction, subject to regulatory approval, is expected in mid-July, it said.  The debenture will bear an increasing rate of interest over its term, with a 7.3 pct weighted average rate and will be convertible into National Computer common stock at 20 dlrs a share, it said. Separately, Deluxe said its Data Card investment no longer fits its business strategy. Deluxe has held an interest in Data Card since 1975 when it provided funds for Data Card to buy Troy Computer Products Corp. In November 1986, Data Card said it planned to sell its Troy division.  
MICROSEMI <MSCC.O> ACQUIRES HYBRID COMPONENTS. Microsemi Corp, a supplier of semiconductor products and assemblies, said it has acquired the operating assets of <Hybrid Components Inc> for 2.2 mln dlrs in cash. Microsemi said the purchase includes the fixed assets, software, inventories, technology, intellectual properties and other business operations of HCI. The company said HCI will continue to operate its Beverly plant as a subsidiary of Microsemi.  
COLONIAL BANCGROUP <CLBGA> BUYS DESTIN BANK. Colonial Bancgroup said it agreed to buy <First National Bank of Destin> for an undisclosed sum. The company said if it is approved, the sale will mark its second move to acquire a Florida bank. It said it signed a letter of intent to buy Liberty Bank of Pensacola in April.  
CHRYSLER <C> HAS NO PLANS TO RAISE BID. Chrysler Corp said it has no intention of increasing its offer for Electrospace Systems Inc <ELE>. Chrysler agreed to purchase the Texas-based defense electronics contractor in a tender offer of 27 dlrs a share for a total value of about 367 mln dlrs. Eletrospace shares closed yesterday on the NYSE at 30-1/8. "We have no intention of increasing the offer," a company spokeswoman said. "We believe it is adequate and will be accepted." She said the proposed transaction was unanimously recommended by the board of directors and principal shareholders of Electrospace. Further, she noted that the 27 dlrs tender offer price is 50 pct above the price of Electrospace's shares before April 30 when it put itself up for sale.  
GREYHOUND LINES AGREES TO ACQUIRE REMAINING ROUTES OF. TRAILWAYS CORP  GREYHOUND LINES AGREES TO ACQUIRE REMAINING ROUTES OF TRAILWAYS CORP  
GREYHOUND AGREES TO ACQUIRE TRAILWAYS ROUTES. <Greyhound Lines> said it agreed to acquire the routes of <Trailways Corp>. Greyhound said it had petitioned the Interstate Commerce Commission for authority to acquire and operate Trailways' routes, 450 of its 1200 buses and some of its terminals and garages. Trailways has abandoned all service in seven states in the past year and more than half of its sevice in three other states, the company said. "Without intervention, the collaspe of Trailways is imminent," said Fred Currey, chairman and president of Greyhound.  
STIFEL FINANCIAL SAID IT RECEIVED UNSOLICITED MERGER. PROPOSAL   STIFEL FINANCIAL SAID IT RECEIVED UNSOLICITED MERGER PROPOSAL   
HARCOURT <HBJ> MUM ON REED <REED.L> RUMORS. Harcourt Brace Jovanovich Inc officials were not available for comment on market rumors that it is interested in acquiring Reed International plc <REED.L>. Officials of First Boston Inc, Harcourt's financial adviser, declined comment. A Wall Street arbitrageur, who owns Harcourt shares, said the rumors did not make much sense because Harcourt has announced a recapitalization plan to ward off a takeover attempt by British publisher Robert Maxwell."It's completely inconsistent with the recapitalization, the only way is if they drop the recapitalization," he said. Calls to Harcourt seeking comment were not returned. Harcourt's recapitalization will come under scrutiny of a U.S. Court in Orlando, Fla. Monday. The company has sought a declaratory judgment on convertibility of debentures due 2011 in light of the recapitalization. Harcourt said in a statement this week that Salomon Brothers Inc <SB> and Mutual Shares Corp have intervened in the case, claiming ownership of more than 30 mln dlrs face amount of the debenture. In addition, British Printing and Communications Corp, headed by Maxwell, owns 9.5 mln dlrs face amount, Harcourt said. Salomon said in a filing with the Securities and Exchange Commission today that it has 21,978 of the debentures. If the court decides they should be converted at par value of one dlr, they could be converted into 22.0 mln shares. Harcourt is asking the court to rule the company is not required to issue common to debenture holders who did not convert prior to June eight. An increase in Reed shares in London today was attributed by brokers to rumors of Harcourt's interest and also to rumors that Maxwell might be a buyer. But an adviser to Maxwell in New York said "there's no basis to think that it's us."  
MINNESOTA MAY CONSIDER ANTI-TAKEOVER AMENDMENT. Minnesota Governor Rudy Perpich is considering calling a special legislative session to consider amendments to the state's anti-takeover statute, according to the governor's office. A spokesman for the governor said nothing will be decided today, but said the governor will evaluate later whether to call a special session in the next few days. The governor's office said the possible action was triggered by a proposal by Dayton-Hudson Corp <DH>, which has been the subject of takeover rumors. A spokesman for the governor said the company proposed several amendments to Perpich designed to make any takeover attempt in the state more difficult.  Dayton-Hudson suggested amendments be passed and instituted by next Friday, the spokesperson said. Press reports in Minneapolis newspapers this morning quoted several legislators as saying they were inclined to support legislation that would help Dayton-Hudson, according to a governor's spokesperson. Senate Majority Leader Roger Moe was quoted as saying he would be inclined to support any action that would help the company, the spokesperson said. Robert Vanasek, the House speaker designate, was quoted in the Minneapolis Star and Tribune as saying, "We are taking their (Dayton-Hudson) concerns very seriously and we are going to do what we can to help."  
BOEING <BA> MERGER WAITING PERIOD EXPIRES. Boeing Co said the Hart-Scott-Rodino waiting period required in connection with its pending tender offer for ArgoSystems Inc <ARGI.O> expired at midnight June 18. Boeing began its 37 dlr per share cash tender offer for the defense electronics firm on June two.  
MEGAVEST TO ACQUIRE COMPUTER TRADE DEVELOPMENT. <MegaVest Industries Inc> said it has agreed in principle to acquire unlisted Computer Trade Development Corp in exchange for 119 mln shares of its common stock. The company said it has about 21.5 mln shares outstanding. It said Computer Trade had revenues of about 6.1 mln dlrs last year.  
FIRST <FBT> REITERATES SPECULATION PREMATURE. First City Bancorp of Texas Inc, which is soliciting bidders, reiterated that it is premature to speculate on what course of action it will pursue following a story in today's Wall Street Journal that it has attracted at least three potential acquirers. First City said the article was not confirmed by the company, and it cautioned that there is "absotluely nothing to say or report beyond" its statement. The Journal reported that among the bidders for First city was Robert Carney and Robert Abboud, a former Chicago banker.  
CHEVRON <CHV> CUTS UNC <UNC> STAKE TO 8.4 PCT. Chevron Corp said it sold 4.6 mln shares of UNC Inc common stock on June 15, leaving it with 1.4 mln UNC common shares, or 8.4 pct of the total. In a filing with the Securities and Exchange Commission, Chevron said it sold the shares for 11.88 dlrs each, or a total of 54.6 mln dlrs, under an agreement it had with UNC. The stock was sold to an underwriting syndicate managed by Dillon, Read and Co Inc and Donaldson, Lufkin and Jenrette Securities Corp, with the underwriters paying 38.3 mln dlrs and UNC paying 16.4 mln, it said.  
SAFEWAY AGREES TO SEVERANCE FOR DALLAS WORKERS. The United Food and Commercial Workers Union said unlisted Safeway Inc has agreed to provide severance pay to about 5,000 workers in the Dallas area resulting from the closure of a division last April. The union said the total severance payment will be about five mln dlrs. It said the division was closed as a result of 4.6 billion dlrs in debt incurred from a leveraged buyout last year. The union said it filed suit following the leveraged buyout to protect the claims of union members. The leveraged buyout was implemented to ward off a bid by Dart Group Corp <DARTA.O>.  
GALAXY <GTV> TO SELL WEST TEXAS ASSETS. Galaxy Cablevision L.P. said it signed a letter of intent to sell the assets of its cable television systems in West Texas which serve about 4,600 basic subscribers through nine cable television systems. Terms were not disclosed and the Galaxy did not identify the buyer. The company also said it will make its first cash dividend of 37 cents per unit on or about August 15 to holders of record June 30. In March, Galaxy completed a public offering of 2.2 mln units for 43 mln dlrs and acquired the assets of 132 cable television systems for about 34 mln dlrs.  
NORTH AMERICAN COMMUNICATIONS WEIGHS POSSIBLE SALE OR. MERGER  NORTH AMERICAN COMMUNICATIONS WEIGHS POSSIBLE SALE OR MERGER  
STIFEL FINANCIAL <SF> RECEIVES MERGER PROPOSAL. Stifel Financial Corp said it received an unsolicited merger proposal from privately held Laidlaw Adams and Peck Inc for 15 dlrs a share in cash for all its outstanding shares. The proposal, which expires July 1, values Stifel at about 54 mln dlrs. Stifel has about 3.6 mln shares outstanding. The company said its management and board of directors will consider the proposal but have not set a date to meet. It said the proposal is currently being studied by Goldman Sachs and Co and legal counsel. It said conditions of the proposal include obtaining necessary financing, satisfactory completion of a due diligence investigation by Laidlaw, and execution of employment contracts with key employees to be designated by Laidlaw.  
N.Y. TIMES <NYT> TO BUY GWINNETT DAILY NEWS. The New York Times Co said it had an agreement to buy the Gwinnett Daily News, an evening newspaper published in Lawrenceville, Ga., Terms were not disclosed. The company said Gwinnett has a weekday circulation of about 27,500 and a Sunday circulation of about 30,900. The New York Times also said Gwinnett County, a northeast suburb of Atlanta, is the fastest-growing county in the country. The purchase agreement includes the Forsyth County News, published on Wednesday and Sunday and the Winder News, a weekly, among other publications.  
REED SAYS IT HAS NO COMMENT ON HARCOURT RUMOURS. Reed International Plc <REED.L> said it had no comment to make on U.K. stock market rumors that Harcourt Brace Jovanovich Inc <HBJ> may make a bid for the company in order to escape unwelcome offers from Robert Maxwell's British Printing and Communication Corp <BPCL.L>. A spokeswoman for Reed said earlier analysts forecasts that a bid for Reed will have to be about 700 mln stg were totally unrealistic, adding that its current market is about 2.7 billion stg.  
METRO AIRLINES <MAIR.O> TO MAKE ACQUISITION. Metro Airlines Inc said it has agreed in principle to acquire privately held Chaparral Airlines inc for 5,700,000 dlrs in cash. Chaparral provides regularly scheduled service out of Dallas/Fort Worth Regional Airport as an affiliated carrier of AMR Corp <AMR> and had revenues in 1986 of 14.1 mln dlrs.  
ALTUS BANK <ALTS.O> FAILS TO REACH AGREEMENT. Altus Bank said it has not been able to reach a definitive agreement to buy Horizon Financial Corp, Horizon Funding and 2.8 billion dlrs in loan servicing from Victor Savings and Loan Association. Altus, formerly known as First Southern Federal Savings and Loan Association, earlier announced the signing of a letter of intent to make the acquisitions. Horizon Financial and Horizon Funding both are units of Victor Savings and Loan Association.  
MARCADE GROUP INC <MAR> BUYS EUROPE CRAFT. Marcade Group said it had agreed to buy Europe Craft Imports Inc for a combination of cash and common stock. The company said Europe Craft designs, imports and distributes menswear and sportswear under the Member's Only brand name. The company said Europe Craft had sales of 70 mln dlrs last year. Marcade said this latest deal is part of an ongoing acquisition phase.  
N. AMERICAN COMMUNICATIONS <NACS.O> WEIGHS SALE. North American Communications Corp said it is considering several options to maximize shareholder value, including a possible sale, merger, corporate restructuring, or leveraged buyout. Trading in the company's stock was halted pending an announcement. The company, which owns and operates 47 cable television systems in Minnesota and Wisconsin, said it retained Communications Equity Associates as its financial adviser to explore alternatives.  
MURPHY OIL SAID IT PROPOSING TO ACQUIRE REMAINING 23 PCT. OF CANADIAN SUBSIDIARY  MURPHY OIL SAID IT PROPOSING TO ACQUIRE REMAINING 23 PCT OF CANADIAN SUBSIDIARY  
PRIMERICA <PA> COMPLETES SMITH BARNEY TAKEOVER. Primerica Corp said it completed the previously announced acquisition of Smith Barney Inc for 750 mln dlrs in cash. Primerica, wh ich changed its name in April from American Can Co, said Smith Barney, Harris Upham and Co Inc, wholly owned by Smith Barney Inc, will add more than 100 domestic and overseas branch offices.  
KING WORLD <KWP> HAS FINANCING FOR OFFER. King World Productions Inc said it will finance the repurchase of up to 7,600,000 of its shares announced earlier today through cash on hand and about 200 mln dlrs of bank borrowings, for which it has received commitments from First Chicago Corp <FNB> and Bank of New York <BK>. The company today started a tender offer for up to 4,100,000 shares at 28 dlrs each and agreed to buy up to 3,485,085 more shares from members of the King family and management, who together own a total of 13.9 mln shares.  All the shares being repurchased amount to about 25 pct of King World's stock.  
MURPHY OIL <MUR> TO ACQUIRE CANADIAN SUBSIDIARY. Murphy Oil Corp said its board proposed a reorganization in which it would acquire the 23 pct of common shares of its Canadian subsidiary not owned by the parent. Under the proposal, which would be undertaken as a court-approved plan of arrangement, shareholders of Murphy Oil Co Ltd of Calgary, Alberta, Canada, would be offered the option to receive 31 dlrs (Canadian) a share cash or the equivalent market value of common shares of the parent company.  
INVESTOR SELLS 10 PCT RB <RBI> STAKE. Jeffrey Neuman, of Santa Monica, Calif., told the Securities and Exchange Commission he sold his entire RB Industries Inc stake of 341,210 shares, or 10.0 pct, of the total outstanding. Neuman, who transferred the stock nearly two years ago to the Tudor Trust, of which he is trustee, said the trust sold the entire stake in a private deal on June 9 at 11.00 dlrs a share.  
FORTUNE FIN'L <FORF.O> UNIT MAKES ACQUISITION. Fortune Financial Group Inc said its Fortune Savings Bank acquired a Financial Security Savings and Loan Association branch in Sunrise, Fla. Terms were not disclosed. The new Fortune Savings Bank office had about 40 mln dlrs in deposits as of June 5. Meanwhile, acquisition of Marine Savings and Loan Association of Florida, with four offices in Naples, Fla, is awaiting regulatory approval.  
GROUP HAS 5.1 PCT OF AMERICAN PHYSICIANS<AMPH.O>. A group led by Far Hills, N.J., investors Natalie and Paul Koether told the Securities and Exchange Commission it has acquired 299,523 shares of American Physicians Service Group Inc, or 5.1 pct of the total. The Koether group said it bought the stock for 1.0 mln dlrs for "capital appreciation" and may buy more. The group also said Paul Koether met on June 8 with management representatives for talks that included the company's business, potential acquisitions for the company, possible opportunities to expand the company and the possibility of Koether being named to its board. The group did not say whether the talks resulted in any agreements. As they have done in several SEC filings concerning other companies in which they have had a stake, the Koethers said they reserve the right "to take any actions which they deem appropriate to maximize the value of the shares," but said they have no current plans about taking any action. While they may buy more American Physicians shares, the Koethers also said they may decide to sell some or all of the their stake in the company.  
BARCO DIRECTORS APPROVE BUYOUT OFFER FROM SENIOR. MANAGEMENT   BARCO DIRECTORS APPROVE BUYOUT OFFER FROM SENIOR MANAGEMENT   
IRWIN JACOBS SAYS HE HOLDS LESS THAN FIVE PCT OF GILLETTE.  IRWIN JACOBS SAYS HE HOLDS LESS THAN FIVE PCT OF GILLETTE  
SITHE TO RAISE ENERGY FACTORS <EFAC> STAKE. Sithe-Energies LP said it has signed an agreement under which it will increase its interest in Energy Factors Inc to 70.0 pct from 53.4 pct now by investing 100 mln dlrs in Energy Factors stock.  
BARCO <BRC> BOARD APPROVES LEVERAGED BUYOUT. Bacro of California said its board approved an offer from its chairman Kenneth Donner and President Michael Donner to purchase all the outstanding Barco common shares at 5.05 dlrs per share in a leveraged transaction. The Donners currently own about 44 pct of the company's outstanding shares, Barco said. It also said vice chairman David Grutman and family members, who own about 28 pct of Barco's shares, have agreed to sell their stock for the offering price.  
IRWIN JACOBS HAS GILLETTE <GS> STAKE. Investor Irwin Jacobs said he has an investment in Gillette Co amounting to less than five pct of the consumer products company's stock. Jacobs, who made his comment in response to an enquiry, did not comment further. Yesterday, Gillette rebuffed a takeover proposal from Revlon Inc. Under an agreement between the two companies, Revlon must have the permission of Gillette's board before making an offer to shareholders. The board declined to grant that permission.  Gillette has been the topic of takeover speculation for several weeks. Its stock has traded heavily, and arbitragers said they believe Jacobs may not be the only investor who has a sizeable position in the company.  
VR <VRBB.O> CLOSES STOCK SALE TO VR ACQUISITION. VR Business Brokers Inc said it closed the sale of a controlling interest in its comon and preferred stock to VR Acquisition Corp, a Delaware corporation controlled by an investment group led by C. Robin Relph of London. Under the agreement dated April 28, VR Business agreed to sell 5,008,120 shares of common stock and 11,846 shares of 10 pct cumulative stock. VR Business said it issued 3,964,000 shares of common stock and 11,846 shares of preferred stock, with the remaining shares of common to be listed within the next week to 10 days.  
MICROWAVE LABORATORIES INC <MWAV.O> 4TH QTR NET. April 30 end Shr 12 cts vs eight cts Net 316,655 vs 148,567 Sales 2,011,195 vs 1,422,719 Avg shrs 2,738,864 vs 1,881,296 Year Shr 43 cts vs 49 cts Net 1,006,356 vs 918,290 Sales 7,059,446 vs 5,441,408 Avg shrs 2,329,329 vs 1,881,296  
REED INTL DENIES BID APPROACH. Reed International Plc <REED.L> denied rumours on the U.K. Stock market that it was the target of a takeover bid and said it had received no approach. "In view of the increase in our share price today, I want to make clear that we have not received any bid approaches," Reed's chairman Leslie Carpenter said in a statement. Rumours that U.S. Publisher Harcourt Brace Jovanovich Inc <HBJ> might bid for Reed, a paper and printing company, pushed Reed shares up 54p at 600p at one stage today before they eased back to 564p at the close against a background of a widespread decline in U.K. Equity prices. Share market analysts said speculators were buying the stock on belief that Harcourt would bid for Reed in an effort to escape the unwelcome two billion dlr bid from Robert Maxwell's British Printing and Communication Corp <BPCL.L>. Such a move would have made Harcourt too big for BPCC to take it over, analysts added. They also said there was some speculation that if BPCC's bid for Harcourt was unsuccessful, it could turn its attention to Reed.  
APPLIED DATA <ADCC.O> TO BUY DATELINE. Applied Data Communications said it agreed to acquire privately-held Dateline Technology Inc of Redmond, Wash., for an undisclosed amount of cash and stock. Dateline Technology designs and sells high-capacity, high-speed computer peripheral subsystems, primarily for data storage, Applied Data said.  
GULF AND WESTERN <GW> UPS INTEREST IN NETWORK. USA Network, today said it has acquired Time Inc's <TL> one-third interest in the network. The network, formerly a joint venture between Time, Gulf and Western Inc and MCA Inc <MCA>, said that Gulf and Western and MCA, who each previously held a one-third interest, now will jointly own USA Network on a 50/50 basis. Terms were not disclosed, USA Network said. USA Network is an advertiser-supported, entertainment basic cable network, reaching 39 mln homes on 8,500 cable systems.  
TEKTRONIX <TEK> BEGINS DUTCH AUCTION TENDER. Tektronix Inc said it began its previously announced Dutch Auction cash tender offer for up to 10 mln of its own common shares. Under the terms of the offer the company will select a single cash purchase price for the stock, based on the number of shares tendered, not to exceed 40 dlrs per share or be lower than 35 dlrs per share, Tektronix said. The company also said it does not intend to spend more than 380 mln dlrs for the shares tendered. It further stated that the tender offer expires on July eight, unless extended.  
KAY <KAY> TO ACQUIRE SPECIALTY FASTENER FIRM. Kay Corp said its Balfour, Maclaine International Ltd subsidiary signed a letter of intent to acquire certain assets of a privately-owned distributor of specialty fasteners for about 13 mln dlrs plus management incentives, which it did not disclose. Kay said the firm has annual sales of about 15 mln dlrs. Kay also said it is pursuing private placement of debt securities for a number of corporate purposes.  
NEW ENGLAND CRITICAL CARE <NECC.O> BUYS NPO. New England Critical Care Inc said it completed its purchase of NPO Therapies Inc of Salt Lake City. The company said that NPO Therapies' president and founder, Kelly Mutchie, has joined New England Critical Care as regional vice president covering the western United States. NPO Therapies provides home infusion therapy services.  
DAYTON HUDSON SAID IT TOLD BUYER OF STOCK IT's not. INTERESTED IN BEING ACQUIRED  DAYTON HUDSON SAID IT TOLD BUYER OF STOCK IT's not INTERESTED IN BEING ACQUIRED  
PACIFIC BASIN TO ACQUIRE 51 PCT OF T.E.A.M.. <Pacific Basin Development Corp>, based in Vancouver, British Columbia, said it reached an agreement to buy 51 pct of T.E.A.M. Pacific Corp and its marketing arm for 4.2 mln U.S. dlrs. Pacific also said it expects ot earn three mln Canadian dlrs for the year ended June 30, 1988 and 10 mln Canadian dlrs for the year ended June 1989. T.E.A.M., a former Signetics Corp unit, assembles integrated circuits in Southeast Asia and is itself buying an assembler. Pacific said T.E.A.M. expects to earn over 80 mln Canadian dlrs per year when the acquisition is completed.  
DAYTON HUDSON <DH> NOT INTERESTED IN ACQUISITION. Dayton Hudson Corp, in a letter to employees, said it told an "aggressive buyer" of the company's stock that it does not want to be acquired. A Dayton Hudson spokeswoman would not identify the buyer, but Wall Street sources said Dart Group Corp <DARTA.O> was the company interested in buying Dayton Hudson stock. The Wall Street sources said the Dart Group is expected soon to file a statement with the Securities and Exchange Commission on its accumulation of Dayton Hudson stock. According to the letter to company employess, Dayton Hudson management has moved in two directions to fend off a takeover. According to the letter, chairman Kenneth Macke expressed to the group buying its stock the company's desire to remain independent. Dayton Hudson Thursday night met with Minnesota governor Rudy Perpich, appealing for legislative help. A spokesman for Governor Perpich earlier said the governor is expected later today to recommend stiffening the state's anti-takeover law to help the Minneopolis retailer defend itself. Minnesota House speaker designate said the legislators would probably look at language similar to that contained in Indiana and New York law. He said any amendment proposed would probably be designed to thwart a company from dismantling a company for its own profit. "Obviously Dayton-Hudson people feel whatever statutes we have would not protect them enough," Vanasek said.  
BARNETT BANKS <BBF> FILES AGAINST FEDERAL BOARD. Barnett Banks Inc and Home Federal Bank of Florida said they filed a suit against the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corp. The companies said the suit asks a Jacksonville, Fla., federal district court to enjoin the enforcement of an interpretive rule adopted by the FHLBB last year which seeks to give it jurisdiction over Barnett's proposed acquisition of Home. The suit says this rule is arbitrary and capricious.  
JUDGE TO RULE MONDAY ON BURLINGTON <BUR> CASE. Manhattan Federal Court Judge Shirley Wohl Kram said she would rule Monday on whether to grant a request to block a 78 dlr per share merger agreement between Burlington Industries Inc and Morgan Stanely Group Inc <MS>. The request to bar the merger was made by Samjens Acquisition Corp, a partnership formed by financier Asher B. Edelman and Dominion Textiles Inc. Samjens has made a hostile 77 dlr per share takeover bid for Burlington.  
<K.G. SAUR> SELLS ASSETS TO REED INTERNATIONAL. K.G. Saur, the German-based publisher of databases and legal and bilbiographic reference material, said it has sold all of its assets to The Butterworth Group, a division of Reed International PLC <REED.L>, for under 15 mln dlrs. Saur said Klaus Saur, president and owner of the company, will remain president of Saur operations in Munich, London and New York.  
ARCHER-DANIELS <ADM> DENIES RUMOR. Archer-Daniels-Midland Co denied a report that it is interested in acquiring International Minerals and Chemical Corp (IGL). "We have no interest in International Minerals or any of its divisions," a spokesman told Reuters. "We've had no conversations with them." USA Today reported that Archer-Daniels-Midland might be seeking a hostile takeover of International Minerals.  
GROUP CUTS ZONDERVAN<ZOND.O> STAKE TO 3.8 PCT. One of several investor groups formerly associated with London investor Christopher Moran in his unsuccessful bid to take over Zondervan Corp last year, said it cut its stake in the company to less than five pct. In a filing with the Securities and Exchange Commission, the group, led by investors Lawrence Altschul and James Apostolakis, said it cut its Zondervan stake to 157,500 shares, or 3.8 pct of the total, from 246,500 shares, or 5.9 pct. The group, which earlier this month said in an SEC filing it wanted join with other groups to maximize share values, said it sold 89,000 shares between June 9 and 15 for 1.5 mln dlrs. The group had joined with the Moran group, which last year assembled a combined 44 pct stake in Zondervan during its unsuccessful takeover try. Last month, the Moran group broke up and splintered into various factions. Moran himself withdrew from the takeover effort and last reported his personal stake at 4.8 pct. A group led by Miwok Capital Corp, a California broker with a 10.6 pct stake, and another one led by Minneapolis stockbroker Jeffrey Wendel with 2.6 pct, have both made recent SEC filings saying they are seeking agreements with other parties who may want to seek control of the company.  
NEW LEADER COMING TO U.S. SEC IN CHALLENGING ERA. President Reagan's nominee as top policeman for the nation's securities markets will inherit an agency challenged by an insider trading scandal, wild stock price gyrations and a host of uncertainties stemming from the globalization of financial markets. David Ruder, a 58-year-old Republican law professor at Northwestern University in Evanston, Ill., was named Thursday to be the 23rd chairman of the five-member U.S. Securities and Exchange Commission. If confirmed by the Senate, as expected, he will succeed John Shad, who left the agency earlier this week after a record six years as chairman to become ambassador to the Netherlands. The SEC has been in the limelight for the past year as its investigators have probed into the most colossal insider trading scandal ever uncovered on Wall Street. The investigation, which is still active, mushroomed in recent months as a growing number of well known traders and prominent investment banking firms have been charged with wrongdoing. The pace of the probe picked up markedly in November after Ivan Boesky, one of Wall Street's most successful stock speculators, agreed to cooperate with government investigators and to pay a record 100 mln dlrs in penalties and illegal profits after being charged with insider trading. But the agency is also wrestling with a vexing new phenomenon of huge and rapid swings in stock prices, spurred by computer-driven trading strategies that span markets in securities, options and futures. The price gyrations have combined with rising trading volumes to bring unprecedented volatility to some U.S. securities markets. At the same time, the SEC is being pressed by some lawmakers to put a stop to abusive tactics in corporate takeover contests as an unrelenting wave of such takeovers steadily reshapes the U.S. corporate landscape. And the agency is being pushed by U.S. and foreign exchanges intent on expansion to lay the regulatory groundwork for an international securities marketplace in which trading occurs across borders throughout the world, around the clock. Such worldwide trading networks offer vast new investment opportunities but could strain the SEC's ability to enforce U.S. securities laws and guard investors from fraud. Under the leadership of Shad, the SEC eased financial disclosure requirements for publicly traded companies, eliminated many minor investor protection rules, attempted to spur competition among exchanges and streamlined the agency's review of hostile corporate takeovers. Shad, who had been vice chairman of the E. F. Hutton investment banking firm, brought a Wall Street perspective to the agency upon being named chairman in 1981. In line with the views of other top administration officials, he favored marketplace determination of takeover battles over new federal regulations. The SEC under Shad also stressed prosecution of insider trading violations over the corporate wrongdoing cases that topped the agency's enforcement agenda during the administration of President Jimmy Carter, a Democrat. Securities lawyers and industry officials acquainted with Ruder say the new chairman-designate is unlikely to significantly alter the commission's current priorities. The SEC currently has about 2,000 employees, most of them lawyers, and an annual budget of about 115 mln dlrs though that figure likely will be significantly higher next year as the agency moves to beef up its enforcement staff. The agency is one of the few in the government that actually has taken in more money than it has spent in the past few years because of fees it charges public companies, investment banks and other securities firms it regulates. The SEC is structured as an independent regulatory agency, meaning that its five commissioners are appointed by the president to fixed five-year terms and protected from firing for policy differences alone. By law, no more than three commissioners may be of the same political party, and the agency prepares its own budget request each year instead of leaving this to the White House. Established by Congress in 1934, the SEC traces its origins to the great stock market crash of 1929, which was attributed in large part to widespread trading on credit and attempted market manipulations by large investment firms. The agency requires public companies and investment vehicles such as mutual funds to issue periodic reports on their financial condition and to disclose changes in their condition any time they issue new securities. It requires brokers, dealers and investment banks to register with it and comply with investor protection rules, and it polices exchanges and regulates trading practices. Its first chairman was Joseph Kennedy, an industrial magnate who was also the father of John Kennedy, later to become the nation's 35th president. Other former chairmen include William Douglas, who served from 1937 until his appointment to the U.S. Supreme Court in 1939, and William Casey, who served during President Nixon's first term and was Reagan's director of the Central Intelligence Agency until his death earlier this year.  
SERVICE RESOURCES<SRC> UNIT CUTS SORG<SRG> STAKE. A group led by Chas. P. Young Co, a subsidiary of Service Resources Corp, said it cut its stake in Sorg Inc to 366,700 shares, or 16.7 pct of the total outstanding common stock, from 385,000 shares, or 17.5 pct. In a filing with the Securities and Exchange Commission, Young, which yesterday withdrew its 23 dlr a share takeover proposal, said its other group member, SDI Partners Ltd Partnership, sold 18,300 Sorg common shares between June 16 and 18 at 17-1/2 to 19 dlrs each.  
FIRM HAS SUPREME EQUIPMENT <SEQP.O> STAKE. Towle and Co, a St. Louis, Mo., investment advisory firm, told the Securities and Exchange Commission it has acquired 55,900 shares of Supreme Equipment and Systems Corp, or 5.1 pct of the total outstanding. Towle said it bought the stock for investment purposes on behalf of its advisory clients.  
SICO <SIC.TO> TO BUY REICHOLD <RCI> UNIT ASSETS. Sico Inc said it agreed in principle to buy the U.S. assets of Reichold Chemicals Inc's Sterling Group, which manufactures electrical insulation compounds and industrial resins and develops coatings for the electronics industry. Terms were undisclosed. Sico said it acquired Sterling Group's Canadian assets in February. It said the U.S. acquisition adds about 15 mln dlrs to its annual sales volume.  
INVESTOR GROUP DUMPS SILICON <SLCN.O> STAKE. A group of Boston investors and investment partnerships told the Securities and Exchange Commission it sold its entire stake in Silicon Systems Inc of 410,000 shares, or 6.0 pct of the total outstanding. The group, which includes HLM Associates, HLM Associates II and their three general partners, said it sold the stock between April 22 and June 9 at 9.00 to 9.125 dlrs a share as the result of an investment decision.  
GROUP UPS STAKE IN TANDY BRANDS <TAB> TO 6.9 PCT. A group of companies including Chicago-based Coronet Insurance Co and Sunstates Corp, a Jacksonville., Fla., real estate firm, said it raised its stake in Tandy Brands Inc to 175,900 shares, or 6.9 pct of the total. In a filing with the Securities and Exchange Commission, the group said it bought 43,600 Tandy common shares between May 21 and June 9 for 633,333 dlrs in addition to the 132,300 shares, or 5.2 pct, it had held previously.  
GATEWAY <GMSI.O> RECINDS OFFER FOR WESTWORLD. Gateway Medical Systems Inc said it has withdrawn its May 27 offer to acquire <Westworld Community Healthcare Inc>. The company said it remains interested in acquiring the Westworld's hospitals and will attempt to continue negotiations with Westworld.  
WPP GROUP EXTENDING EXPIRATION OF ITS MERGER PROPOSAL TO. JWT GROUP UNTIL JUNE 22  WPP GROUP EXTENDING EXPIRATION OF ITS MERGER PROPOSAL TO JWT GROUP UNTIL JUNE 22  
JOE FRANKLIN AND ASSETS DEVELOPMENT TO MERGE. Privately-held Joe Franklin Productions Inc said it entered into a preliminary agreement to merge with Assets Development Corp, a public company. Terms were not disclosed. The companies said they expected the merged group to qualify for listing on NASDAQ.  
DART GROUP DECLINES COMMENT ON DAYTON HUDSON<DH>. Dart Group Corp <DARTA.O> said it has no comment on reports the company has been accumulating shares of Dayton Hudson Corp. Dayton Hudson said in a letter to shareholders it told an "aggressive buyer" of its stock that it does not want to be acquired. Wall Street sources have identified the buyer as Dart, which earlier this year was thwarted in a takeover attempt for the now privately held Supermarkets General Corp.  
WPP GROUP PLC EXTENDS ITS OFFER FOR JWT <JWT>. <WPP Group Plc> said it is extending its 50.50 dlrs a share offer for JWT Group Inc until midday June 22. The company temporarily extended the offer on June 17 but did not give an expiration date. Its 45 dlrs a share offer for JWT, which has been rejected by JWT, expires on July 10.  
MAXICARE <MAXI.O> ENDS PLANS TO SELL UNIT. Maxicare Health Plans Inc  said it ended negotiations to sell Maxicare Alabama L.P. to (Complete Health Inc). The companies said last week they had reached agreement in principle for Complete Health to purchase the health maintenance organization, the largest in Alabama. Maxicare said the terms would not be in the best interests of the heatlh care providers who have built the Alabama HMO. It said it now intends to work with its health care providers in Alabama to further develop the HMO.  
INVESTMENT PARTNERSHIP UPS FACET <FCT> STAKE. Charter Oak Partners, a Connecticut investment partnership, said it raised its stake in Facet Enterprises Inc to 480,000 shares, or 9.6 pct of the total outstanding common stock, from 300,000 shares, or 6.0 pct. In a filing with the Securities and Exchange Commission, Charter Oak said it bought 180,000 Facet common shares on June 12 at 18.25 dlrs each.  
Willis Faber says it making agreed 302.6 mln stg bid for. Stewart Wrightson  Willis Faber says it making agreed 302.6 mln stg bid for Stewart Wrightson  
WILLIS FABER BIDS FOR STEWART WRIGHTSON. Willis Faber Plc <WIFL.L> will make an agreed 302.6 mln stg offer for fellow insurance broker <Stewart Wrightson Plc>, a joint statement said. The offer would be on the basis of three Willis shares for every two in Stewart, valuing each Stewart share at about 655.5p. Willis already owns 2.05 mln shares, or 4.62 pct, and has received acceptances from Stewart's directors for a further 247,469 shares. Full acceptance of the offer would involve the issue of 66.2 mln new Willis shares, or 28.2 pct of the enlarged total. The companies said the proposed merger would bring together businesses that were largely complementary. Both believed the combination would permit more effective competition throughout the world and enahnce the service provided to clients. Following the merger, the two companies saw significant opportunities for growth in brokerage income and considerable scope for improved operating efficiency. Willis shares were suspended on Friday at 437p. When trading restarted they dropped sharply to 393p. Stewart Wrightson shares rose to 576p at 0835 gmt from a suspension price of 499p.  
BRENT TO BUY LONRHO DIVISION, PROPOSES RIGHTS. <Brent Walker Group Plc> said it had agreed to buy the group of companies comprising Lonrho Plc's <LRHO.L> Metropole Casino Division, together with a freehold in central London, for 121.55 mln stg. Payment will be in cash on completion except for three mln stg payable on December 1, 1988. Brent said it also proposed to raise about 126 mln stg net through the issue of 131.67 mln convertible shares at one stg each. The shares can be converted between 1990 and 2002 at the rate of four ordinary shares for every 15 convertibles held. On full conversion, the issued ordinary share capital of the company would increase by some 64 pct. <Birdcage Walk Ltd>, a company controlled by the Walker family, owns 20.68 pct of the shares and is entitled to 27.2 mln convertible shares under the offer. The trustees had indicated that it intended to sell enough of the convertibles, nil paid, to enable it to take up the remainder. Brent would buy the casino companies and the freehold of 45, Park Lane in London. Under the arrangements, it would also arrange for the repayment of 6.45 mln stg in inter-company debt. Brent Walker shares firmed sharply on the announcement to 385p from 353p at Friday's close, while Lonrho also firmed, to 275p from 265.5p.  
KRAFT <KRA> COMPLETES BUY OF QUAKER <OAT> UNIT. Kraft Inc said it has completed the previously announced acquisition of the Anderson Clayton Foods Division from Quaker Oats Co for 235 mln dlrs in cash.  
MARTIN PROCESSING SAID IT ACCEPTS 20 DLRS/SHARE BID FROM. COURTAULDS PLC  MARTIN PROCESSING SAID IT ACCEPTS 20 DLRS/SHARE BID FROM COURTAULDS PLC  
FRONTIER <FRTR.O> BUYS MALPRACTICE BUSINESS. Frontier Insurance Group Inc said it acquired the malpractice book of business generated by Medical Quadrangle Inc and Medical Professional Liability Agency Ltd, a producer of medical malpractice coverage. It said the acquisition will enable all of Frontier's medical malpractice coverage to be serviced internally.  
NEW GENERATION PRODUCTS MAKES ACQUISITION. <New Generation Products Inc> said it has acquired a 20 pct ownership in <Personal Protection Technolgies Inc>. New Generation said Personal Protection is developing a group of personal care products, which are effective in killing a variety of viruses and bacteria on contact, for U.S. and export markets.  
MARTIN PROCESSING <MPI> ACCEPTS COURTAULDS BID. Martin Processing Inc said its board approved an agreement to be acquired by Courtaulds Plc <COU.L> for 20 dlrs a share. The company said the transaction is valued at more than 99 mln dlrs, based on its 4,963,620 shares of stock outstanding. It said Courtaulds has privately agreed to purchase a majority of Martin's common from trusts established by Julius Hermes for 20 dlrs a share. It said Courtaulds intends to conduct a tender offer for all the Martin stock it does not own, beginning as soon as necessary documents are prepared.  
BSN <BSN> HAS PURCHASED MACGREGOR <MGS> STOCK. BSN Corp said it purchased MacGregor Sporting Goods' common stock in recent open market transactions. BSN said its position is less than the five pct ownership which would require specific disclosure. The company will continually review its position and may nelect to increase or decrease the number of shares owned, it added.  
UTILICORP <UCU> UNIT BUYS STAKE IN POWER PLANT. Utilicorp United Inc said its UtilCo Group subsidiary completed the purchase of a 38 pct interest in Westwood Energy Properties Limited Partnership for about 10 mln dlrs. The company said the partership is building and will operate a 30-megawatt electric generation facility in Schuykill County, Penn., scheduled to begin commercial operation in July. It said the 38 pct interest was sold by Westwood Funding Corp, a wholly-owned subsidiary of Combustion Engineering Inc <CSP>. Westwood Funding retains an interest in the partership and serves as a general partner, it said.  
CORADIAN <CDIN.O> STAKE ACQUIRED BY SAGE. Coradian Corp said a group led by privately held Sage Equities Group agreed to buy a 7.6 pct interest in Coradian. In connection with the agreement, the company said it sold 666,667 shares at 75 cts a share. It said that in addition to common stock, Sage Equities will receive 667,667 warrants exercisable at 1.50 dlrs a share.  
ENTERTAINMENT MARKETING DEMANDS CRAZY EDDIE SHAREHOLDER. LIST, MAY PURSUE MERGER  ENTERTAINMENT MARKETING DEMANDS CRAZY EDDIE SHAREHOLDER LIST, MAY PURSUE MERGER  
DATACARD <DATC.O> ADOPTS DIVIDEND RIGHTS PLAN. DataCard Corp said it adopted a dividend rights plan in response to Deluxe Check Printers Inc <DLX> having agreed to sell its 38 pct interest in DataCard to National Computer Systems Inc <NLCS.O>. DataCard declared a dividend distribution of one preferred stock purchase right on each outstanding share its common stock. The dividend is designed to deter National Computer or other potential suitors from preventing DataCard from evaluating all alternatives to maximize shareholder value, DataCard said.  National Computer told Reuters June 22 it could make a bid for DataCard. On June 25 DataCard filed suit in Hennepin County District Court in Minnesota to block the sale of the 38 pct stake of its stock to National Computer. In announcing the rights plan, DataCard said it "is not designed to deter takeovers that would be consistent with the objective of maximizing stockholders value to all of DataCard's stockholders." The rights will not become exercisable until 10 days after an announcement that a person or group has acquired beneficial ownership of 44 pct or more of DataCard's common stock.  Once exercisable, each right would entitle a holder to buy 1/500th of a share of DataCard Series A junior participation preferred Stock for 35 dlrs. Holders other than an acquirer would be entitled to purchase, for six-months after the right becomes exercisable, a number of shares of the new preferred stock with a market value equal to twice the exercise price of the rights. The rights dividend distribution is payable July 9 to shareholders of record July 9.  
FEDERAL RESOURCES <FDRC.O> ACQUIRES RETAILER. Federal Resources Corp said it has acquired the capital stock and related real estate assets of <New Generation Inc>, a regional consumer electronics specialty retailer. Terms of the acquisition were not disclosed. New Generation has annual sales volume of about 30 mln dlrs, Federal Resources said. Federal Resources said it will search for additional acquisitions including, but not limited to, specialty retailers.  
ENTERTAINMENT <EM> MAY SEEK CRAZY EDDIE <CRZY>. Enetertainment Marketing Inc and its president Elias Zinn have demanded a list of Crazy Eddie Inc shareholders from the company and said they may pursue a merger of the Edison, N.J. electronics retailer. In a filing with the Securities and Exchange Commission, Zinn said the demand for the shareholder list was made on June 26 because he may desire to communicate with other Crazy Eddie shareholders "regarding the affairs" of the company. Zinn and his firm, which disclosed they hold a 5.1 pct stake in Crazy Eddie common stock, said they may acquire more shares through a negotiated merger or tender offer. Entertainment Marketing was informed on June 25 by Shearson Lehman Brothers Inc., acting on behalf of Crazy Eddie, that it would be provided with "certain information" about Crazy Eddie, it told the SEC. Entertainment Marketing, a Houston-based firm involved in electronics wholesaling and televised home shopping sales, proposed an eight dlr a share merger acquisition of Crazy Eddie on May 29, and modified the proposal on June 9 to include the possible participation of Crazy Eddie management. Entertainment Marketing told the SEC it expects to meet with Crazy Eddie representatives in the near future. Entertainment Marketing also disclosed that it retained Drexel Burnham Lambert Inc as its financial advisor and investment banker. In light of a June 17 announcement from Crazy Eddie that Chemical Bank would no longer fund a 52 mln dlr credit facility with the company, plus further declines in the price of its stock, Entertainment Marketing and Zinn said they are "continuing to evaluate their alternatives with respect to their investment" in Crazy Eddie stock. Depending on its evaluation of the company, including actions by Crazy Eddie's board and any possible third party bids for the company, Entertainment Marketing and its president said they may hold their present stake in the company, sell some of their shares, or purchase more shares on the open market, through private purchases or in connection with a merger or tender offer. According to the SEC filing, Entertainment Marketing and Zinn bought their current holdings of 1,560,000 Crazy Eddie common shares between May 20 and June 17 at 7.42 dlrs to 7.93 dlrs a share, or a total of about 11.9 mln dlrs.  
CYCLOPS <CYL> MERGER APPROVED. Cyclops Corp said shareholders approved a previously announced merger of the company with a subsidiary of dixons Group PLC. It said Dixons held about 83 pct of Cyclops stock following a tender offer and other purchases earlier in the year. With the completion of the transaction, Dixons will proceed to pay 95 dlrs a share to the remaining Cyclops shareholders.  
VERNITRON <VRN> SETS NEW RECORD DATE. Vernitron Corp said it has set a new record date of July 10 for shareholders entitled to vote on the proposed merger of Vernitron with <SB Holding Corp>. The original record date was May 26. Vernitron said that it currently expects the special shareholder meeting concerning the merger will be held in August. Following its tender offer in November 1986, SB Holding holds 55.2 pct of Vernitron, a maker of electromechanical components and related products and services.  
ENERGAS <EGAS.O> TO BUY TEXAS AMERICAN <TAE>UNIT. Energas Co said it has agreed in principle to purchase Western Kentucky Gas Co from Texas American Energy Corp for 61.5 mln dlrs in cash plus assumptrion of certain liabilities. Western Kentucky is a gas distribution company which serves about 143,000 customers in 108 towns and communities in Kentucky.  
GIBRALTAR <GFC> TO BUY THRIFT FOR 12 MLN DLRS. Gibraltar Financial Corp said its Gibraltar Savings unit has agreed in principle to buy <First Federal Savings and Loan of Ridgecrest> for about 12.1 mln dlrs cash. The company said the actual price will be determined at the close, based on net book value at May 31. It said First Federal is located in Kearn County northeast of Los Angeles and has assets of 130 mln dlrs. It said the transaction is subject to a definitive agreement, shareholder and regulatory approval.  
WINLEY BUYS LAND FROM M.D.C. HOLDINGS INC <MDC>. Winley Home Builders Inc said it completed a land purchase agreement with M.D.C. Holdings Inc <MDC> for 1,090,000 dlrs in notes and preferred stock. The company said it bought 33 lots in Colorado from Richmond Homes Ltd, an M.D.C. unit, in return for 650,000 dlrs in promissory notes and 440,000 dlrs in preferred stock. The company said M.D.C. has an option to convert Winley preferred stock into 20 pct Winley common in a year.  
GABELLI FIRMS HAVE 28.5 PCT STAKE IN DIGIORGIO CORP, MAY. SEEK CONTROL  GABELLI FIRMS HAVE 28.5 PCT STAKE IN DIGIORGIO CORP, MAY SEEK CONTROL  
INTERSTATE BAKERIES <IBC>BUYS MEXICAN FOOD FIRM. Interstate Bakeries Corp said its Royal American Foods subsidiary agreed to buy the assets of Landshire Food Products Inc, a New-Mexico-based producer of packaged Mexican food products. Terms of the proposed transaction were not disclosed.  
GABELLI FIRMS HOLD 28.5 DIGIORGIO <DIG> STAKE. A group of firms led by Gabelli Group Inc told government regulators it holds a 28.5 pct stake in Digiorgio Corp common stock, and said two partnerships making up part of the group may seek control of the company. In a filing with the Securities and Exchange Comission, the group of firms said it holds 2,430,100 shares of Digiorgio common stock. Of the total, 2,059,400 shares are held by GAMCO Investors Inc and Gabelli Funds Inc. for investment purposes, the group said.  Gabelli-Rosenthal and Partners LP and G and R Partners, which hold the remaining 370,700 Digiorgio common shares, told the SEC their "purpose is to ultimately obtain control of Digiorgio contingent upon approval of Digiorgio," according to the SEC filing. As previously reported, Gabelli and Co Inc, acting as investment advisor to a group including Gabelli-Rosenthal, proposed on June 25 to acquire all Digiorgio common shares for a per share price of 20 dlrs in cash, a subordinated note with a face value of eight dlrs, 14 pct redeemable preferred stock, and one common share of the post-buyout company. The June 25 buyout proposal, which remains open until July 17, also provides that key members of Digiorgio management and some of its directors would be invited to remain with the firm and participate in the group acquiring the company. The proposal is also subject to a due diligence review, execution of a merger agreement, arrangement of financing and receipt of government approvals, all of which Gabelli and Co said could be completed within 60 days. Between April 13 and June 26, the entire group led by Gabelli Group Inc made net purchases of 403,600 Digiorgio common shares at 22.20 dlrs to 26.79 dlrs a share.  
<UNICOA> TO MERGE INTO ITS UNITED INSURANCE UNIT. Unicoa Corp said it agreed to a merger with its wholly-owned subsidiary, United Insurance Co of America. Under the agreement, each outstanding share of Unicoa common stock will be converted into one share of United common stock. The agreement is subject to shareholder and regulatory approval. Teledyne Inc <TDY> owns about 98.4 pct of Unicoa's outstanding shares. A shareholder meeting is expected to be held in August.  
FED APPROVES CITICORP PURCHASE OF SOME ASSETS OF SEARS. CALIF. THRIFT  FED APPROVES CITICORP PURCHASE OF SOME ASSETS OF SEARS CALIF. THRIFT  
HEALTH PROPERTIES <HRP> TO BUY PROPERTIES. Health and Rehabilitation Properties Trust said it reached an understanding to purchase three nursing facilities in Mass. and Conn. for 29 mln dlrs from Greenery Rehabilitation Group Inc <GRGI.O>. The buildings will be leased back to Greenery for an initial term of seven years, subject to renewal options for an additional 23 years, Health and Rehabilitation Properties said. The transaction is expected to close on or before August 31.  
BSN <BSN> BUYS STAKE IN MACGREGOR <MGS>. BSN Corp said it holds less than five pct of MacGregor Sporting Goods. The company said the stock was acquired through recent open market purchases and the stake does not require specific disclosure.  
VERNITRON <VRN> SETS RECORD DATE FOR MERGER VOTE. Vernitron Corp said it has set a new record date for shareholders entitled to vote on the proposed merger of Vernitron Corp with SB Holding Corp for July 10. Vernitron, which manufactures electromechanical components and related products and services, said it expects that a special meeting of shareholders will be held in August. Vernitron said that SB Holding holds 55.2 pct in Vernitron, resulting from a tender offer in November 1986.  
FED ALLOWS CITICORP <CCI>, SEARS <S> THRIFT DEAL. The Federal Reserve Board said it approved Citicorp's application to purchase through its subsidiary, Citicorp Savings of Oakland, Calif., some assets and assume some liabilities of Sears Savings Bank of Glendale, Calif. Citicorp Savings proposed to assume two billion dlrs in deposits and other liabilities and to purchase 1.9 billion dlrs in assets of 50 branch offices of Sears Savings. The proposal involved less than one third of the assets and liabilities of Sears Savings, owned by Sears, Roebuck and Co <S>. The Fed said that it generally has determined there were potentially adverse effects of allowing affiliations of banks and savings and loan associations, although it has allowed bank holding companies to acquire some failing thrifts. It said Citicorp's proposal "properly may be viewed as the permissible acquisition of certain assets and liabilities of S and L branches rather than the acquisition of an S and L." Citicorp Savings, the successor to the failed Fidelity Savings and Loan Association, has assets of 4.9 billion dlrs and operates 86 branches in California, mainly in the north. Sears Savings has 6.6 billion in assets and 91 branches predominantly in southern California. The application, which was approved unanimously, will not eliminate Sears Savings as a competitor, the Fed said.  
ICN <ICN> BUYS STAKE FROM EASTMAN KODAK <EK>. ICN Pharmaceuticals Inc said it purchased the remaining 225,000 shares of Viratek Inc <VIRA.O> owned by Eastman Kodak Co owned as part of a previously announced program. The company said it paid Kodak 10.50 dlrs a share or 2.4 mln dlrs. As previously announced, ICN also said it authorized the additional purchase of up to 1.5 mln shares of Viratek common. To date, ICN said it bought a total of about 1.2 mln shares of Viratek, including the shares purchased from Kodak. The company said it now owns 56 pct of Viratek as a result of these transactions.  
MAXTOR CORP <MXTR.O> BUYS PRIVATE FIRM. Maxtor Corp said it bought privately-held Storage Dimensions Inc for an undisclosed sum. The company said Storage Dimensions incorporates Maxtor's high-capacity 5-1/4-inch Winchester and optical disk drives into a family of data storage subsystems for IBM PCs, XTs, ATs and compatibles. Storage Dimensions is the creator or SpeedStor software, a utility program that integrates high-capacity disk drives into PCs. Maxtor said the purchase reflects its desire to compete in the high-capacity segment of the PC market.  
SEC CHARGES CAMPEAU'S ALLIED STORES WITH DISCLOSURE. VIOLATIONS IN RECENT TAKEOVER  SEC CHARGES CAMPEAU'S ALLIED STORES WITH DISCLOSURE VIOLATIONS IN RECENT TAKEOVER  
GROUP MAY SUPPORT CARDIS CORP <CDS> BUYOUT. A group of companies controlled by Brookehill Partners Inc told government authorities it may support a buyout of Cardis Corp as a way to maximize the value of the company's stock. In a filing with the Securities and Exchange Commission, the group disclosed that it currently holds a 5.5 pct stake in Cardis common stock, and said it "would likely support" an acquisition of the company as a whole or in parts by another party, terming such a move "the most likely means for the company's shareholders to maximize the value of their investment." Although the group characterized its Cardis stock holdings as principally for investment, it said it intends to contact third parties who might be interested in an acquisition of Cardis, a Los Angeles-based auto parts distributor. The group added its has already had "some contacts" with others concerning the company, but said no understandings have been reached. "The (Cardis) common shares continue to offer opportunity for price appreciation on the basis of the company's asset value and earnings momentum," the Brookehill group told the SEC. The group, which currently holds 318,900 Cardis common shares, consists of New York-based Brookehill Partners and its two subsidiaries, Brookehill Equities Inc, a brokerage, and Moore, Grossman and deRose Inc, an investment advisor. Walter Grossmman, S. Edward Moore and Robert deRose, all of New York, each own one-third interests in Brookehill Partners. Since April 27, members of the Brookehill group made net purchases of 6,000 Cardis common shares at approximately 4 dlrs a share. The group told the SEC it may continue to purchase additional Cardis stock, but also reserved the right to sell its shares in the company.  
CAREMARK <CMRK.O> TO VOTE BAXTER <BAX> MERGER. Caremark Inc and Baxter Travenol Laboratories Inc jointly announced that Caremark shareholders will vote on July 31 to approve the previously announced merger with Baxter. The companies said Caremark shareholders of record as of June 26 will be entitled to vote at the meeting to be held in Newport Beach, Calif, at 1000 PDT. On May 11, Baxter and Carmark announced a definitive agreement for Baxter to acquire Carmark in a stock transaction valued at 528 mln dlrs.  
SEC SAYS CAMPEAU UNIT VIOLATED DISCLOSURE RULES. The Securities and Exchange Commission charged Allied Stores Corp with failing to promptly disclose key steps it was taking last September to thwart a takeover attempt by Campeau Corp. In an administrative complaint, the SEC said Allied and its legal adviser failed to promptly inform shareholders and the agency that it had begun talks with Youngstown, Ohio, shopping center developer Edward DeBartolo in response to Campeau's takeover offer. Campeau acquired Allied for an estimated 4.2 billion dlrs on Jan 1, following a battle with DeBartolo. On Sept 25, a day after Allied disclosed that its board had urged rejection of Campeau's Sept 12 tender offer for 58 dlrs a share, Allied began negotiating the sale of six shopping centers to DeBartolo, the SEC said. Allied legal advisor and director George Kern, who heads the merger and acquisitions group at the New York law firm of Sullivan and Cromwell, decided against amending Allied's SEC filing to disclose the talks even though they had resulted in sales price of 405 mln dlrs for the shopping centers, it said. Securities law requires takeover target companies to promptly disclose such things as the sale of major assets. The day after Campeau increased its tender offer to 80 pct of Allied's stock from 55 pct and raised its bid to 66 dlrs a share from 58 dlrs on Sept 29, Allied and a partnership headed by DeBartolo began negotiating a takeover deal aimed at thwarting Campeau, the SEC said. Kern again decided against disclosing the talks in an amended SEC filing, the agency charged. Allied's first disclosure of the DeBartolo takeover was made on Oct 8, even though its board approved the merger on Oct 3 and the merger agreement was executed on Oct 7, the complaint said. DeBartolo and Campeau later engaged in a bitter battle for control of Allied, with Campeau winning out later in October when it bought a block of 25.8 mln shares of Allied stock, or 48 pct of the total, in a controversial move made only minutes after it dropped its hostile tender offer. The acquisition of the additional 48 pct, which a federal judge allowed to be completed, gave Campeau a majority stake in Allied. Campeau bought the rest at 69 dlrs a share. The SEC said it had planned to file a court brief joining with Allied in charging that Campeau had engaged in an illegal tender offer. But the SEC brief was never filed since the case was dropped following an agreement between Campeau and DeBartolo. In the administrative proceeding against Allied and Kern, the SEC is asking for an administrative order that they comply with reporting provisions of securities laws in the future. Although Allied is no longer publicly traded since it became a subsidiary of Campeau, it still files annual and quarterly reports to the SEC because it has outstanding debt.  
ALLIED-SIGNAL <ALD> COMPLETES UNIT SALES. Allied-Signal Inc said it completed the sale seven businesses in its electronics and instrumentation sector for 1.8 billion dlrs in cash and in debt assumed by the purchasers. The company said last December its would sell the units by mid 1987. It did not identify the buyers. The company said the proceeds will be used to reduce debt, continue the company's share buyback program, and increase strategic investments in its core businesses and other corporate purposes. It said the units sold were Ampex Corp, Amphenol Prodcuts, Linotype Group, Neptune International, MPB Corp, Revere Corp and Sigma Instruments Inc.  
CYCARE <CYCR.O> BUYS CONTROL DATA <CAD> UNIT. Cycare Systems Inc, an information processing systems company, said it purchased the assets of Control Data Corp's MedTec unit for undisclosed terms. MedTec is a provider of patient accounting and scheduling systems for large scale group medical practices.  
BECOR <BCW> TO ADJOURN DELAYED HOLDERS MEETING. Becor Western Inc said no business will be transacted at the shareholders meeting scheduled for 1000 CDT tomorrow and the meeting will be permanently adjourned. If a definitive agreement or transaction results from any of the offers now pending for the company's stock, Becor said, a date for a new shareholders meeting will be established.  
UNIVERSAL COMMUNICATION <UCS> TO SELL ASSETS. Universal Communication Systems Inc said it has tentatively agreed to sell substantially all its assets for about 79 mln dlrs in cash and notes plus limited profit participation. The company said the terms of the sale have been approved by its board and by Prime Motor Inns Inc <PDQ>, owner of about 84 pct of Universal's outstanding stock. It described the purchaser as a subsidiary of a company in the communications field which is one of the 100 largest U.S. corporations. The company said the transaction involves the payment of 20 mln dlrs in cash, a non-interest bearing payment of 11.3 mln dlrs in four equal instalments over four years and two promissory notes guaranteed by an affiliate of the purchaser. It said a 31.5 mln dlr 14 pct note is payable in four equal instalments over four years. It said a 16.3 mln dlr 8.5 pct note due Dec 31, 1992, includes participation in the 1992 profits of the acquiring company. Universdal said the profit element can be terminated with payments by the purchaser of either five mln dlrs in 1988, six mln dlrs in 1989, seven mln dlrs in 1990 or eight mln dlrs in 1991.  
UNION <UEL.TO> ENDS PACT TO SELL CANBRA <CBF.TO>. Union Enterprises Ltd said its agreement to sell its interest in Canbra Foods Ltd to Macluan Capital Corp has been terminated. Union said Macluan failed to make an offer for Union's 72 pct interest in Canbra before the June 22 deadline. Union said it is no longer bound by the agreement and is continuing to seek a buyer for the interest.  
SSMC <SSM> TO BUY CUTTERS EXCHANGE DIVISION. SSMC Inc said it has executed a letter of understanding to acquire the Parts Catalog Division of <Cutters Exchange Inc> for an undisclosed amount. SSMC, spun off from the Singer Co <SMF> a year ago, said that the Parts Catalog Division wholesales parts and needles to the industrial sewing trade in the U.S. Under the agreement, key managers and employees of the Parts Catalog Division in Nashville, Tenn, will relocate to the SSMC facility in Murfreesboro, SSMC said.  
CAROLCO PICTURES <CRC>, ORBIS IN AGREEMENT. Carolco Pictures Inc said it signed a letter of intent to exchange 2.2 mln of its shares for all Orbis Communications Inc stock within the next 60 days. It said the Carolco shares used in the exchange are valued at 7.00 dlrs a share or a total value of 15.4 mln dlrs and will be adjusted based on the price of Carolco shares on the closing date. It said Orbis management will remain in place for at least three years.  
SETON <SEL> DIRECTORS APPROVE MERGER AGREEMENT. Seton Co said its board of directors unanimously approved an agreement and plan of merger providing for the merger of Seton with a unit of S Acquisition Corp, a New Jersey company. Seton said its board of directors unanimously approved the merger in a meeting held today. Seton said the agreement and plan of merger provides that all shares of Seton Co common stock not held by S Acquisition Corp, or its units, will be converted upon the merger into the right to receive 15.88 dlrs per share in cash.  
DI GIORGIO <DIG> TO EVALUATE GABELLI OFFER. Di Giorgio Corp said it plans to respond to an unsolicited recapitalization plan proposed by Gabelli and Co Inc after the company, its board and its investment bankers evaluate the proposal. Earlier, Gabelli said in a filing with the Securities and Exchange Commission that it holds a 28.5 pct stake in DiGiorgio and that it, together with Gamco Investors Inc may seek control of the company. In addition, on June 25 the Gabelli group proposed to acquire all of Di Giorgio's common shares for a combination of 20 dlrs per share in cash, a subordinated note with a face value of eight dlrs and one common share of the post-buyout company. The June 25 buyout proposal remains open until July 17.  
BRITISH PETROLEUM COMPLETES STANDARD OIL MERGER. British Petroleum Company PlC <BP.L> has completed its merger with Standard Oil Co of the U.S. <SRD>, raising its holding to 100 pct from 55 pct, BP said in a statement. The acquisition was made through BP's wholly-owned subsidiary <BP America Inc>. BP took a 25 pct stake in Standard in 1970, raising its stake to 53 pct in 1978 and 55 pct in 1984. BP chairman Sir Peter Walters will be chairman of BP America, while Robert Horton is to be vice-chairman and chief executive officer, with Frank Mosier as president. BP said further details would be released on July 21.  
RTE <RTE> BUYS SOME EMHART <EMH> ASSETS. RTE Corp said it completed the purchase of the U.S. aluminum electrolytic capacitor business and related assets of Emhart Corp, for undisclosed terms.  
ROCHESTER <RTC> ACQUIRES <CANTON TELEPHONE CO>. Rochester Telephone Corp said it completed the acquisition of Canton Telephone Co and is now operating the company. Terms of the acquisition were not disclosed. Canton Telephone serves about 2,900 access lines in northwestern Pennsylvania and had 1986 operating revenues of about 1,300,000 dlrs, Rochester Telephone said.  
SAN FRANCISCO, NOT REGION, HURT BY RESTRUCTURING. Corporate mergers and acquisitions in and around San Francisco over the past seven years have had only a modest effect on the metropolitan area's economy, a leading business-backed organization said. The Bay Area Council, a group of more than 300 business firms, said that a study of corporate restructuring in a nine-county area found that San Francisco itself had suffered some ill effects from corporate shake-ups but that surrounding communities had not. Seventeen of the 32 Fortune 500 companies in the area left due to corporate restructuring between 1979 and 1986, but another 21 firms were added to the list. Ten of the departing companies were based in San Francisco. During the period, only six located in the city achieved Fortune 500 status. Ted Hall, a council director and local managing director of McKinsey and Co. which conducted the survey, said the study grew out of concern that mergers and acquisitions had seriously hurt the economic climate of northern California. However, Hall said that only about 36,000 jobs had been lost in the region, while more than 600,000 new jobs were created during the period. At the same time, he said, the region experienced a greater rise in per capita income and lower unemployment than the rest of the United States and California. Council President George Keller, who also is chairman and chief executive officer of Chevron Corp., told a news conference that the region had difficulties in persuading companies to locate there because of a fragmented local political system. But he said that because of the amenities of living in San Francisco, he was the envy of many chief executives in other metropolitan area. "It's a great place to run a business," he added, "but it's a hell of a place to do business with government." The study concluded that Chevron, which mergered with Gulf Oil in 1984, would benefit in the long run from the restructuring activity. Among the corporate headquarters lost during the period were Crown Zellerbach, Memorex, Southern Pacific, Castle & Cooke and Rolm. Companies that grew enough during the period to make the Fortune 500 list included Apple Computer, Pacific Telesis, McKesson, Tandem Computer, U.S. Leasing and Amfac. The study by the management consulting firm said that, partly due to corporate restructuring, the rate of job growth in San Francisco has slowed since 1980. In addition, it said that the loss of corporate leadership had adversely affected some of the Bay Area's civic and charitable activities.  
WTC SHAREHOLDERS APPROVE PITTSTON <PCO> BUYOUT. Pittston Co said WTC International N.V. shareholders approved the acquisition of the company by Pittston. Terms of the transaction call for Pittston to exchange 0.523 of its own common shares for each outstanding WTC share, Pittston said. WTC is engaged in domestic international air freight, ocean and surface freight forwarding and consolidation and distribution services.  
HOME FEDERAL <HFBF.O> SETS SHAREHOLDER MEETING. Home Federal Bank of Florida F.S.B. <HFBF.O> said it has scheduled a special shareholders meetng for July 26 to approve proposed changes to the bank's charter and merge with Barnett Bank Inc's Barnett Bank of Pinellas County, N.A. Home Federal said the meeting is to approve a definitive agreement signed May 26, calling for each share of Home Federal's common stock to be exchanged for about 40 dlrs in market value of Barnett common stock. The exchange would be based on conversion of Home Federal shares of not less than 1.935 or more than 1.200 shares of Barnett stocks. At 40 dlrs a share, Home Federal said the total market value of the transaction would be about 175 mln dlrs. Home Federal said notice of the meeting and related proxy materials, which has been filed previously with the Securities and Exchange Commission and the Federal Home Loan Bank board, were mailed on June 26, to holders of record on June 15.  
ARDEN GROUP <ARDNA.O> PLANS ISSUER TENDER. Arden Group Inc said it filed a registration statement with the Securities and Exchange Commission covering two issuer tender offers. It said one offer its directed to its class A common stock holders and another to holders of its 8-1/4 pct debentures due March 1, 1989. The planned offer for common stock holders calls for the company to exchange either 30 dlrs in cash, or 35 dlrs principal amount of 13 pct subordinated debentures due September 1, 1997, or one share of a new class B common stock, for each class A share held, Arden Group said. It also said the cash payment is subject to proration. In addition, the company said it plans to offer to exchange one dlr principal amount of 13 pct debentures due September 1, 1997 for each outstanding one dlr principal amount of 8-1/4 pct debentures.  
LOMAS <LNK> SHAREHOLDERS APPROVE ACQUISITION. Lomas and Nettleton Financial Corp said its shareholders approved at a special meeting the company's acquisition of Equitable Life Leasing Corp for 263.3 mln dlrs. Equitable Life Leasing Corp is a subsidiary of Equitable Investment Corp, which is owned by the Equitable Life Assurance Co of U.S. Lomas said the acquistion price will consist of one mln in cash, 1.5 mln shares of the company's common stock, 71,000 shares of a new series C preferred stock, and 8.944 mln dlrs principal amount of nine pct senior notes due 1994. The company added that the acquisition will close June 30.  
ALMI GROUP ACQUIRES INTEREST IN CLEARVIEW BAKING. <ALMI Group L.P.> said its co-chairmen, Michael Landes and Albert Schwartz, and its vice chairman, Michael Spiegler, have acquired a 50 pct equity interest in <Clearview Baking Corp> for undisclosed terms. A. Dale Mayo, Clearview's president and chief executive officer, will retain a 50 pct interest in the company, ALMI Group said.  
WAL-MART <WMT> COMPLETES ACQUISITION. Wal-Mart Stores Inc said it has completed the acquisition of <Super Saver Warehouse Inc> and Super Saver is now a wholly owned unit of Wal-Mart.  
KRAFT <KRA> COMPLETES FROSTEX ACQUISITION. Kraft Inc said it completed the acquisition of Frostex Foods Inc for undisclosed terms. Kraft said last month it had signed a letter of intent to acquire the Austin, Texas-based foodservice distributor.  
RTE CORP <RTE> BUYS EMHART CORP UNIT. RTE Corp said it completed the purchase of Emhart Corp's United States aluminum electrolytic capacitor business for an undisclosed sum. The company said the capacitor business is part of Emhart's electrical and electronic group marketed under the Mallory brand name. The company said the product lines it acquired had sales of 25 mln dlrs last year.  
UNITED MEDICAL CORP <UM> SELLS UNIT. United Medical Corp said it will sell its Trotter Treadmills Inc unit. The company said the sale is in line with its strategy of refocusing on its health care service business. It said it had received interest from several parties, but no agreement has yet been reached. Trotter Treadmills makes motorized treadmills for the exercise enthusiast and fitness club market. It said its sales for this year are projected to be over 10 mln dlrs.  
CYCARE SYSTEMS INC <CYCR> BUYS MEDTEC. CyCare Systems Inc said it bought Control Data Corp's <CDA> MedTec unit for an undisclosed sum. The company said MedTec's new client base could have a significant impact on long-term revenues, although it expects a minimal positive impact on earnings in the next six months. It said the assets purchased include processing agreements, software maintenance contracts and the supporting software.  
BASS-LED GROUP HAS 8.9 PCT BELL and HOWELL CO STAKE FOR. INVESTMENT  BASS-LED GROUP HAS 8.9 PCT BELL and HOWELL CO STAKE FOR INVESTMENT  
MCCHIP <MCS.TO> TO ACQUIRE RESERVE HOLDING. McChip Resources Inc said it has agreed to exchange its interest in Oklahoma oil and gas properties operated by Reserve Exploration Co <REXC.O> for 638,435 restricted Reserve common shares. The company said it will have a 44 pct stake in Reserve's outstanding shares as a result of the exchange.  
BASS GROUP HAS STAKE IN BELL AND HOWELL <BHW>. An investor group led by Robert Bass of Fort Worth, Texas said it owns 786,800 shares of Bell and Howell Co common stock, equal to 8.9 pct of the company's common stock outstanding. In a filing with the Securities and Exchange Commission, the group said it purchased 511,500 Bell and Howell common shares between April 29 and June 26 at 44.25 dlrs to 56.02 dlrs a share. The stock was acquired for investment purposes, the group said, adding it may purchase or sell additional shares in the future.  
CXR <CXRL.O>,TOROTEL <TRTL.O> TO SETTLE SUIT. CXR Telcom Corp and Torotel Inc agreed in principle to settle pending litigation regarding the sale of Torotel's former Halcyon Communications Inc unit to CXR in March, 1986, the two companies said in a joint statement. The agreement calls for CXR to pay to Torotel 1,350,000 dlrs in exchange for return of a 2.5 mln dlr note and five mln CXR common shares valued at 1,7754,000 mln dlrs, the companies said. In June, 1986 CXR filed the suit in San Francisco federal court, charging that the 10.3 mln dlr price it paid for Halycon was excessive, Torotel said. It also said that in is suit CXR asked for seven mln dlrs in damages, along with an unspecified punitive award.  
CABLEVISION SYSTEMS <CVCC> BUYS STATIONS. Cablevision Systems Corp said it bought cable television systems in six Dutchess County, N.Y., communities from Dutchess County Cablevision Associates Ltd. The company said the acquisition of the new systems will add to its presence in New York. It said it will add 4,400 subsribers to its 568,000 subscriber base.  
AUSTEC <AIL.S> COMPLETE PURCHASE OF PRIVATE FIRM. Austec International Ltd said its North American unit, Austec Inc, completed the purchase of privately-held Ryan-McFarland Corp for an undisclosed sum. The company said the two units combined are expected to have net revenues of about 25 mln dlrs in 1987. Ryan-McFarlnad develops COBOL and FORTRAN language compilers for the micro, mini and mainframe computer markets. Austec International is based in Melbourne, Australia. Ryan-McFarland is located in Rolling Hills Estates, Calif.  
TECSYN INTERNATIONAL TERMINATES TAKEOVER TALKS WITH. INVESTOR GROUP  TECSYN INTERNATIONAL TERMINATES TAKEOVER TALKS WITH INVESTOR GROUP  
CAMPEAU SAYS IT IS NOT PART OF SEC PROCEEDING. <Campeau Corp> said it is not involved in the Securities and Exchange Commission's administrative proceeding against Allied Stores Corp, which Campeau acquired at the end of last year. In a statement, the company said, "The SEC action involves events that occurred prior to Campeau's acquisition of Allied relating to the alleged failure of Allied to make certain disclosures. Consequently, Campeau is not subject to the procedings."  
FORTUNE SYSTEMS <FSYS.O> APPROVES UNIT SALE. Fortune Systems Corp said its shareholders approved the sale of its computer hardware business to SCI Technologies Inc. The transaction is expected to close this week. At its annual meeting, Fortune said shareholders also voted to change Fortune's name to Tigera Inc. Its principal subsidiary is Tigeral Corp.  
TECSYN <TSNA.TO> TERMINATES TAKEOVER TALKS. TecSyn International Inc said it terminated takeover discussions with a U.S.-based investors group after the group was unable to establish access to funds to complete the proposed transactions, contrary to previous assurances. TecSyn previously said it and its controlling shareholders accepted in principle a proposal from the group to offer nine dlrs a share for 70 pct of TecSyn's outstanding shares. The investor group also planned to invest 22.5 mln dlrs in a private placement of four mln non-voting TecSyn common shares, the company said.  
GOODYEAR <GT> TO SELL STAKE IN TOYOBO PETCORD. Goodyear said it is selling its 50 pct interest in Toyobo Petcord Ltd of Japan to its partner in the venture, Toyobo Co.  
GENCORP INC SAYS TO SELL GENERAL TIRE TO CONTINENTAL. GUMMI FOR 650 MLN DLRS  GENCORP INC SAYS TO SELL GENERAL TIRE TO CONTINENTAL GUMMI FOR 650 MLN DLRS  
GENCORP <GY> TO SELL GENERAL TIRE. Gencorp Inc and Continental AG of Hanover, West Germany, jointy announced they signed an agreement for Continental to buy Gencorp's General Tire Inc subsidiary for 650 mln dlrs in cash. Under the agreement the companies said Continental will acquire General Tire, including its related domestic and foreign operations, and Gencorp will retain liability for the medical benefits of retired General Tire employees who retired on or before November 30, 1984. The sale is expected to be completed on or before November one and is subject to meeting certain conditions. Continental is Europe's second largest tire producer. Last year, the company had sales of 2.6 billion dlrs, with 1.9 billion dlrs generated by its tire operations. Last year, General Tire had operating profits of 79 mln dlrs on sales of 1.1 billion dlrs, and Gencorp had operating profits of 130 mln dlrs on sales of 3.1 billion dlrs. GenCorp spokesman Rip Tilden said the company will retain about 100 mln dlrs in liability for its former General Tire employees under the agreement. Tilden said Gencorp will use the proceeds from the sale to reduce its 1.5 billion dlr debt. In April, GenCorp sucessfully thwarted a takeover by a partnership formed by AFG Industries Inc <AFG> and Wagner and Brown with a restructuring program that included the purchase of up to 54 pct, or 12.5 mln shares, of its common at 130 dlrs a share for a total of 1.6 billion dlrs As part of the restructuring, GenCorp also said it planned to sell its tire business, the bottling operations of its RKO General Inc subsidiary, and RKO's remaining broadcast properties to focus on the company's aerospace and automotive components businesses.  Tilden said Gencorp expects to realize about 850 mln dlrs in after tax proceeds by the end of 1987 as a result of sale of several pieces of the nonbroadcast assets of the company, including general tire. "The price paid for General tire would not cause us to reevaluate that estimate," said Tilden. General Tire employs 10,000 people worldwide and has four tire manufacturing plants in the U.S. and one in Canada. In a statemnet, A. William Reynolds, GenCorp chairman said the sale of General Tire "represents a critical accomplishment in our plan to restructure GenCorp."  Reynolds also said GenCorp's previously announced sale of its other businesses are "proceeding satisfactorily." Among the pieces of Gencorp's empire that remain to be sold are its RKO bottling operations. GenCorp agreed to sell RKO's KHJ-TV station to Walt Disney Co <DIS> for 217 mln dlrs. That deal awaits approval by the Federal Communications Commission. GenCorp also received 257 dlrs after tax from the sale of RKO's WOR-TV.  
KELLWOOD <KWD> BUYING THREE COMPANIES. Kellwood Co said it signed a definitive agreement to acquire Robert Scott Ltd Inc, David Brooks Ltd Inc and Andrew Harvey Ltd of Dedham, Mass. Terms were not disclosed. Combined sales of the three companies in 1986 were over 50 mln dlrs, it said. The deals are expected to be completed by July 31, Kellwood said.  
A.H. ROBINS SAYS RORER GROUP MERGER PROPOSAL MERITS. FURTHER CONSIDERATION  A.H. ROBINS SAYS RORER GROUP MERGER PROPOSAL MERITS FURTHER CONSIDERATION  
DIGITAL COMMUNICATIONS <DCAI.O> BUYS FOX UNIT. Digital Communications Associates Inc said it agreed with Fox Technology Inc <FOXT.O> to buy its Fox Research Inc unit for a cash payment and the assumption of liabilities of around 10 mln dlrs. The company said part of the agreement includes payment of up to an additional 6.5 mln dlrs based on the performance of the unit in the year following the closing. The company said the deal is expected to be closed in mid-August. Fox Research develops, makes and markets local area networks for personal computers.  
A.H. ROBINS <QRAH> TO CONSIDER RORER OFFER. A.H. Robins Co said its board has concluded that the merger proposal submitted by Rorer Group Inc <ROR> merits further consideration. At the request of the board, Rorer has agreed to extend until 1800 EDT July 2 its deadline for response from A.H. Robins. After Rorer announced its second bid for the company last Thursday, analysts forecast that the Robins family, which holds control of the company, would vigourously oppose any merger. But, the analysts added, that Robins desire to emerge independent from two years of bankruptcy proceedings may be thwarted by some Robins' shareholders who perceive a merger as a more expedient way of dealing with the company's Dalkon Shield related liabilities. After a failed first attempt earlier this year, Rorer's latest merger plan calls for a share swap worth about 720 mln dlrs. Rorer would also set up two trusts to cover the estimated 1.75 billion dlrs in liabilities to deal with about 320,000 claims by women who suffered maladies from the use of the Dalkon Shield interuterine device.  
CITICORP <CCI> SAVINGS EXTENDS CALIFORNIA REACH. Citicorp has extended its reach into the California market with Citicorp Savings' acquisition of 50 of Sears Roebuck's <S> Sears Savings Bank branches, bringing its presences to 143 branches in 101 communities, CitiCorp Savings said. Thrift industry analysts said the move, approved by the Federal Reserve board today, is a plus for Citicorp and shows its serious intent to penetrate the California market. The acquisition mostly extends Citicorp's reach into Southern California, where 34 of the 50 branches are located. Citicorp Savings was predominantly in Northern California. "This marks our first major expansion in California, particularly in the south," said Citicorp Savings President Edward Valencia, in a statement. Thrift industry sources said they do not see a major near-term impact on the Southern California thrift market, but do expect Citicorp to be a more aggressive competitor than Sears was in that market. "We do believe they will be a better competitor than Sears," said James Stutz, Executive Vice President of Home Federal Savings and Loan Association <HFD>, based in San Diego. Banking industry sources said the move is viewed as groundwork, to establish Citicorp throughout the California market, well before the 1991 law change that will allow it to operate as a bank in the state. They said Citicorp is likely to convert the branches to banks at that time. In the near-term, however, analysts said with seven billion dlrs in assets, Citicorp Savings is still not a major force in the thrift market, against such large California thrifts as Home Federal, Great Western Financial Corp <GWF>, H F Ahmanson and Co <AHM>, Golden West  Financial <GWD> and Great American First Savings Bank <GTA>.  
CONTEL <CTC> UNIT SALES SEEN BY ANALYSTS. Contel Corp's telecommunications equipment unit is the most likely candidate for sale by the Atlanta-based telecommunications company, Wall Street analysts said. "Executone is at the top of the list," said one analyst, referring to Contel's loss-riden telecommunications equipment unit. "The question is, who would take it?" he added. The company, forecasting a 15 pct drop in 1987 operating earnings over last year, said late today that it is reviewing all operations in an effort aimed at "maximizing long-term stockholder value." Analysts also said Contel's federal systems division, which has been hit with several executive defections, may also be put on the block. Contel officials declined to comment on the possibility of selling any operations. However, the company indicated in a statement that it was closely evaluating the telecommunications and federal systems units.  
CDC LIFE SCIENCES <LSI.TO> STAKE SOLD. Canada Development Corp <CDC.TO> said it agreed to sell its 25.2 pct interest in CDC Life Sciences Inc to Caisse de depot et placement du Quebec, the provincial pension fund manager, and Institut Merieux, a French biological laboratory company, for 169.2 mln dlrs. It said the caisse and Institut Merieux will each buy 2.75 mln common shares of the company for 30.76 dlrs a share. It said following the transaction the caisse will hold about 19.3 pct of CDC Life Sciences. Canada Development said the purchasers do not plan to acquire the remaining publicly-held shares.  
CYCLOPS <CYL> HOLDERS APPROVE DIXONS MERGER. Dixons Group Plc said shareholders at a special meeting of Cyclops Corp approved the previously announced merger of Cyclops with Dixons. Under the terms of the merger, Dixons said the remaining public Cyclops shareholders are to receive 95 dlrs a share. Dixons also said the previously announced sale of Cyclops steel and nonresidential construction businesses to a former Alleghany Corp <Y> subsidiary is expected to be completed June 30. After the sale, Cyclops will retain its specialty retailing business and change its name to Silo Inc, said Dixons.  
STE-GENEVIEVE UPS OFFER FOR SULLIVAN <SUM.TO>. Ste-Genevieve Resources Ltd said it increased its cash takeover bid for Sullivan Mines Inc shares to 7.25 dlrs a share. It did not give the original bid. The offer is for a minimum five mln common shares and a maximum six mln shares, the company said. It gave no further details.  
GE CREDIT SAYS IT WILL BUY KRAFT INC'S D AND K FINANCIAL. CORP  GE CREDIT SAYS IT WILL BUY KRAFT INC'S D AND K FINANCIAL CORP  
JUSTICE OPPOSES QUICK GREYHOUND-TRAILWAYS MERGER. The Justice Department said it asked the government to proceed cautiously on a plan allowing the nation's two largest intercity bus companies to merge their operations, a move one of the firms said may derail the deal. Justice's opposition to quick federal approval of a bid by Greyhound Lines Inc to take immediate control Trailways Corp prompted Greyhound to threaten -- in a brief filed with the Interstate Commerce Commission (ICC) -- to drop the merger plan. Greyhound officials told Reuters late today the company hoped for ICC action on the merger by tomorrow. "Greyhound Lines will go forward with the transaction only if it is permitted to assume immediate, unconditional control of Trailways' operations and to integrate them with its operations," Greyhound said in a filing with the ICC, the federal regulatory agency which has the final say over mergers of interstate bus companies. But Justice had said in an earlier filing with the ICC that it wanted the agency to move slowly on the plan and to turn down Greyhound's request to begin operating Trailways immediately. "The department has just begun to receive relevant information on Trailways' financial condition and is in the process of assessing the correctness of the company's allegations," acting Assistant Attorney General Charles Rule said in comments submitted to the ICC. Greyhound announced June 19 that it wanted the ICC to let it begin operating Trailways immediately while continuing to evaluate the merger for possible antitrust problems. Greyhound said it would pay 80 mln dlrs for many of Trailways' terminals, buses and garages. The two companies said in papers filed with the ICC that Trailways "could collapse in a matter of days." They said Trailways owed suppliers more than six mln dlrs, with another six mln dlrs due June 30. The suppliers, they said, could force Trailways into bankruptcy "at any time." Trailways also owes a consortium of banks 76 mln dlrs, and the consortium has threatened to call the loan if Trailways fails to pay the interest due June 30, they said.  
ALLIED-SIGNAL <ALD> SELLS TO SCHLUMBERGER <SLB>. Allied-Signal Inc and Schlumberger Ltd jointly announced that Schlumberger had acquired Allied-Signal's Neptune International unit. Terms weren't disclosed. Atlanta, Ga.-based Neptune, which makes water meters and flow measurement equipment, had sales last year of 80 mln dlrs.  
DIGITAL <DCAI.O> TO ACQUIRE FOX <FOXT.O> UNIT. Digital Communications Associates Inc <DCAI.O> said it has entered into an agreement to acquire substantially all the assets of Fox Technology Inc's Fox Research Inc subsidiary. The company said it will assume about 10 mln dlrs of Fox liabilities with a provision for a further 6.5 mln dlrs based on the future financial performance of Fox during the one year period following the closing of the deal. It said the acquisition is subject to approval by Fox shareholders and is expected to close in mid August.  
GENERAL ELECTRIC <GE> TO BUY KRAFT <KRA> UNIT. General Electric Co's GE Credit Corp said it agreed to buy all of the capital stock of Kraft Inc's wholly owned subsidiary D and K Financial Corp. Terms of the acquisition were not disclosed. D and K, with assets of more than one billion dlrs, is one of the leading U.S. companies involved in the leasing of fleets of cars, according to GE Credit. Jim Ahtes, a spokesman for GE Credit's outside public relations firm, Manning, Selvage and Lee Inc, emphasized that the terms of the acquisition had not yet been approved.  
IEP LIFTS ULTRAMAR AND OGELBAY NORTON STAKES. <Industrial Equity (Pacific) Ltd>, (IEP) the Hong Kong-listed unit of Brierley Investments Ltd <BRYA.WE>, said it has lifted its stakes in British oil company Ultramar Plc <UMAR.L> and U.S. Firm <Ogelbay Norton Co>. IEP told the Stock Exchange it now holds 36.03 mln Ultramar shares representing 13.07 pct of the issued capital. It holds 388,600 shares in Ogelbay representing 11.68 pct of the Delaware-based company. No other details were available.  
FABER OPEN FOR OFFERS ON MORGAN GRENFELL STAKE. Willis Faber Plc <WIFL.L> chairman and chief executive David Palmer said the company would consider any bid for its 20.8 pct shareholding in Morgan Grenfell Group Plc <MGFL.L> but had not yet received any offers. "We will entertain any approaches," he told Reuters in reply to questions, following U.K. Press speculation. In an earlier statement, Faber said that if an offer were to be received for its stake in the merchant banking group, "it would be considered on its merits."  
CORBY DISTILLERIES TO EXPAND IN CANADA. <Corby Distilleries Ltd>, 52 pct owned by Allied Lyons Plc <ALLD.L> subsidiary <Hiram Walker-Goodman & Worts> is to buy the spirits business of <McGuinness Distillers Ltd> of Toronto for 45 mln Canadian dlrs. McGuinness is a producer and marketer of spirits and also has exclusive agencies for some imported wines and spirits. The sale is subject to the approval of the Bureau of Competition Policy. Michael Jackaman, president and chief executive officer of Hiram Walker and Allied Vintners, said, "The acquisition is an excellent one both commercially and financially."  
LAWSON SAYS BP SHARE OFFER GOING AHEAD. U.K. Chancellor of the Exchequer Nigel Lawson said the Government was going ahead with this month's flotation of British Petroleum Co Plc <BP.L> shares despite the collapse on international stock markets. "We are going ahead because the whole issue has been underwritten - we had it underwritten because there is always a risk of this sort of thing happening," Lawson said in a BBC radio interview. Lawson's remarks came as renewed selling on the London stock market took BP shares down a further 33p to 283, well below the 330p price set for the around seven billion stg issue. Lawson said the U.K. Economy is fundamentally sound and added that stock markets had reflected that recently. "I profoundly believe in the market system as the best way for securing economic prosperity (but) that does not mean to say the markets are infallible." "My advice to small investors...Is to remain calm. There is absolutely no reason not to do so," Lawson said.  
<PLUM HOLDING INC> STARTS HOILLY SUGAR <HLY> BID. Plum Holding Inc said it has started its previously-announced offer to purchase 664,400 common shares of Holly Sugar Corp at 95 dlrs each. In a newspaper advertisement, the firm said the offer, proration period and withdrawal rights expire November 17 unless extended. The offer, which has been approved by the Holly board and is to be followed by a merger in which remaining shares are to be exchanged for cumulative redeemable exchangeable preferred stock, is conditioned on receipt of at least 664,400 shares, which would give Plum a two thirds interest, and the receipt of financing.  
GAF <GAF> TO PURCHASE UP TO 21 PCT OF STOCK. GAF Corp said its board has authorized the repurchase from time to time of up to seven mln of its common shares, or about 21 pct, for cash in open market purchases or private transactions. The company said it repurchased 2,100,000 shares under an April authorization to buy back up to three mln shares and authorization for further repurchases under the old program has been withdrawn. Yesterday, GAF said a group led by chairman Samuel J. Heyman has decided to reconsider its offer to acquire GAF. GAF said a revised offer by the group is still possible.  
COMPUTER MEMORIES <CMIN.O> TO DELAY MERGER. Computer Memories Inc said its board has decided to take additional time to evaluate the impact of litigation on the proposed acquisition of <Hemdale Film Corp>. Computer Memories said it plans to adjourn its annual shareholders meeting, scheduled for October 23, after it is convened. One purpose of the meeting is to consider the transaction, the company explained. Computer Memories said Hemdale agrees with this course of action.  
CIRCLE EXPRESS TERMINATES PLANNED ACQUISITION OF OVERLAND EXPRESS.  CIRCLE EXPRESS TERMINATES PLANNED ACQUISITION OF OVERLAND EXPRESS  
CIRCLE EXPRESS<CEXX.O> ENDS OVERLAND<OVER.O> BUY. Circle Express Inc said negotiations on its proposed acquisitions of Overland Express Inc and privately-held Continental Training Services Inc have been terminated by mutual agreement. The company said the recent declines in stock prices have made it unlikely that the transactions could qualify as tax-free reorganizations.  
CRAZY EDDIE <CRZY.O> AMENDS SHAREHOLDER RIGHTS. Crazy Eddie Inc said its board of directors amended the company's shareholder rights plan in moves it said were designed to preserve stockholder protection and provide flexibility to the plan. Yesterday, Crazy Eddie agreed not to oppose a slate of candidates to its board proposed by the Committee to Restore Stockholder Value, a shareholder group led by the <Oppenheimer-Palmieri Fund L.P.> and Entertainment Marketing Inc <EM>, that has been seeking to oust current management. Crazy Eddie said the new amendments limit future amendments to the plan, modify the definition of "continuing directors" and permit amendment or termination of the plan with the consent of the company's shareholders if there are no continuing directors in office or the approval of at least three such directors cannot be obtained. The company also said it approved a certificate of designation with respect to its 4.5 mln shares of authorized, but previously undesignated and unissued shares of preferred stock and adopted an employee stock ownership plan. Crazy Eddie also that it requested that the shareholder group make a commitment not to take the company private until Crazy Eddie has had a chance to recover from current financial difficulties, a committment that the group rejected. Crazy Eddie said it will hold its annual shareholders meeting on November 6.  
BASTIAN TECHNOLOGIES SAYS IT HAS FIVE PCT OF COSMO COMMUNICATIONS, MAY SEEK CONTROL.  BASTIAN TECHNOLOGIES SAYS IT HAS FIVE PCT OF COSMO COMMUNICATIONS, MAY SEEK CONTROL  
SERVICE CORP <SRV> DUMPS CAPITAL SOUTHWEST STAKE. Service Corp International said its Investment Capital Corp unit sold its entire 14.8 pct stake in Capital Southwest Corp <CSWC.O> common stock, and no longer holds any Capital Southwest shares. In a filing with the Securities and Exchange Commission, Investment Capital said it sold 280,000 shares of Capital Southwest common stock since September 21 at 19.56 dlrs to 21.50 dlrs a share. No reason was given for the recent sales.  
TRANS WORLD AIRLINES SAID CARL ICAHN WITHDRAWS ACQUISITION OFFER.  TRANS WORLD AIRLINES SAID CARL ICAHN WITHDRAWS ACQUISITION OFFER  
BASTIAN TECHNOLOGIES MULLING COSMO <CSMO.O> BID. New York-based Bastian Technologies Corp said it acquired a five pct stake in Cosmo Communications Corp, and is considering a move to seek control of the company or to secure a role in its affairs. "Bastian Technologies believes that with the appropriate management policies and business strategies, the company can once again become profitable and maximize for all shareholders the underlying value of their company," Bastian said in a filing with the Securities and Exchange Commission. Bastian said alternatives being considered include an attempt to acquire Cosmo through a merger, tender or exchange offer, seeking to influence the company's management and policies, and seeking representation on Cosmo's board of directors through a proxy contest or otherwise. Bastian said it may contact third parties regarding its intentions toward Cosmo, adding it intends to request a meeting with Cosmo representatives to discuss its investment in Cosmo stock. Bastian currently holds 253,700 Cosmo common shares, or five pct of the total outstanding. The shares were purchased from Nasta International Inc <NAS> on October 16 for about 1.15 mln dlrs, Bastia said.  
ICAHN DROPS BID FOR TWA <TWA>. Trans World Airlines Inc said chairman Carl C. Icahn has withdrawn his proposal to acquire the TWA shares he does not already own due to the deterioration in market conditions. Under the proposal Icahn would have paid for each TWA share 20 dlrs in cash and 25 dlrs face amount of 12 pct subordinated debentures due 2007. TWA said Icahn reserves the right to make a subsequent proposal at some future date on the same terms or different terms.  
A/W BRANDS <SODA.O> COMPLETES ACQUISITION. A and W Brands Inc said it completed the acquisition of Vernors Inc from United Brands Co <UB> in a cash and stock transaction worth valued at about 10 mln dlrs  
LASMO CANADA TO MERGE WITH ONYX PETROLEUM. LASMO Exploration (Canada) Ltd, a subsidiary of London & Scottish Marine Oil Plc <LSML.L>, is merging with <Onyx Petroleum Exploration Co Ltd>, LASMO said. The merger is to be made by Onyx buying LASMO Exploration, in a share swap. A new company, LASMO Canada Inc, will be formed. LASMO will control 70 pct of the equity, worth some 76 mln Canadian dlrs based on the current Onyx share price. The new company will have proven reserves of 9.5 mln barrels of oil and 20.9 billion cubic feet of gas, LASMO said.  
GORDON TO MAKE BID TO ACQUIRE PAGECORP <PGOA.TO>. <Gordon Investment Corp> said it plans to make an offer to acquire all of Pagecorp Inc's class A and Class B shares for 9.25 dlrs cash per share. The bid is conditional upon an examination by Gordon of the business and affairs of Pagecorp during the 45 days ending December 3, 1987. The proposed offer would be condition upon ainimum number of shares being tendered, Gordon said. It did not say what the minimum will be.  Meanwhile, Pagecorp said it agreed to grant Gordon an option to purchaser 900,000 class A shares at 9.25 dlrs per share, which is exercisable only if Gordon makes the acquisition bid before December 4, 1987 or if any third party begins a takeover before December 31, 1987. Pagecorp also said all Class B shareholders have agreed to deposit their class B shares, if Gordon proceeds with its offer.  
JACOBS SELLS STAKE IN GILLETTE <GS>. Minneapolis investor Irwin Jacobs said he sold the stake he held in Gillette Co <GS> after deciding that he could not force Gillette to accept a 47 dlr a share takeover bid made by Revlon Group Inc <REV>. Revlon's bid expired last week after being repeatedly rejected by Gillette. Jacobs had earlier considered waging a proxy fight over Gillette. Jacobs told Reuters he sold the Gillette stake, which he called "substantial" but under five pct, a few weeks ago over a period of several days. He said he sold the stock at a profit, but did not disclose the selling price. Gillette's stock was at 24-1/8, up 1/8, in morning trade, off the high of 45-7/8 reached after Revlon announced its bid. Jacobs said he sold his Gillette stake based on an "investment decision. I surely did not see this happening," he said of Monday's stock market free-fall. A Gillette spokesman said the mpany had no comment. Jacobs said he and fellow investor Carl Pohlad continue to hold a stake in Allegheny International Inc <AG>. In August they disclosed in a Securities and Exchange Commission filing that they had acquired 854,900 shares, or 7.9 pct, of Allegheny and would consideer seeking control of the company.  
TRANSAMERICA <TA> TO BUY SEDGWICK <SDWK.L> UNIT. Transamerica Corp's Transamerica Insurance Co said it signed a definitive pact to buy a 51 pct interest in Sedgwick Group PLC's River Thames Insurance Co. Transamerica will buy 11 mln newly issued Class A shares of River Thames for 2.23 dlrs per share. Sedgwick wil retain a 49 pct interest in River Thames, which is a property liability reinsurer. The agreement, subject to shareholder approval, is expected to close by the end of the year, the company said. In 1986, River Thames reported net premiums written of 36 mln dlrs.  
U.S COMMERCE DEPT OPPOSES FOREIGN TAKEOVER BAN. Commerce Undersecretary J. Michael Farren opposed language in the trade bill before Congress to limit foreign takeovers of U.S. companies. "Anything that would serve to have a chilling effect on foreign investment is going to cost us jobs and economic growth," Farren said before a congressional coittee. House and Senate negotiators are ironing out differences in trade bills passed by both chambers. Once the negotiators reach agreement, the bill will be sent to President Reagan for his signature.  
GROUP LIFTS STAKE IN SMITH INTERNATIONAL <SII>. A group of firms led by Hong Kong-based Industrial Equity (Pacific) Ltd said it increased its stake in Smith International Inc common stock to 3,997,100 shares, or 17.5 pct of the total outstanding, from about 14.9 pct. In a filing with the Securities and Exchange Commission, the group said it bought 586,500 Smith common shares between October 9 and 19 at 7.86 dlrs to 9.57 dlrs a share. No reason was given for the recent purchases.  
GUINNESS COMPLETES UNIT SALES WORTH 232.6 MLN STG. Guinness Plc <GUIN.L> said it has completed the sale of subsidiaries <Martin CTN Group Plc> and <Drummonds Pharmacy Group Plc>. Total consideration was 232.6 mln stg, subject to adjustment on final audit, which is expected to add 12 mln stg, Guinness said. Martins has been sold to <Panfida Ltd> an Australian investment company, and Drummonds to <Macarthy Plc>.  
ERICSSON SELLS OFFICE MACHINE DIVISION. Telefon AB L M Ericsson <ERIC.ST> said it would sell its office machinery unit, with a turnover of two billion crowns, to Norway's <Norska Design Funktion A/S>. Ericsson Information Systems, of which the unit is a part, said in a statement a decision would be reached in November about when the Norwegian firm would take over the operation. No price was given for the deal. EIS managing director Stig Larsson said the deal would allow EIS to concentrate on voice and data communication products.  
GOODMAN FIELDER HAS 29.9 PCT OF RANKS HOVIS. Goodman Fielder Ltd <GOOW.S> of Australia said in a statement that it had acquired 31 mln ordinary shares in Ranks Hovis McDougall Plc <RHML.L> (RHM), bringing its stake in the company to 29.9 pct or 101 mln ordinary shares. Goodman said it has no intention of making a full bid for the company and would not contemplate doing so over the next six months in the absence of a material change in the circumstances of Ranks. RHM said it regards the stake build-up as a hostile move which is unwelcome and not in the long term interest of shareholders.  
STANADYNE <STNA.O> PURCHASES AMBAC STAKE. Stanadyne Inc said it has acquired a substnatial majority of AMBAC S.p.A.'s outstanding stock from <AIL Corp>, the successor to United Technologies Corp's <UTX> Diesel Systems Division for undisclosed terms. In addition to purchase a majority of the Brescia, Italy, based company, Stanadyne said, it acquired a minority interest in AMBAC's U.S. operation headquartered in Columbia, S.C.  
SCIENCE ACCESSORIES <SEAS.O> ENDS PURCHASE TALKS. Science Accessories Corp said it has ended talks on acquiring privately-held Owl Electronics Laborarories Inc because it could not reach satisfactory terms.  
TOTAL CAPITAL ACQUIRES DUNHILL COMPACT. <Total Capital Corp> said it acquired <Dunhill Compact Classics Inc> for an unspecified amount of stock. The surviving company will be controlled by Dunhill's principals, Total Capital said. Dunhill makes compact discs.  
OWENS-ILLINOIS <OI> EXTENDS BROCKWAY <BRK> OFFER. Owens-Illinois Inc said its subsidiary's 60 dlr a share cash tender offer for all the outstanding common shares of Brockway Inc has been extended to midnight October 30. The offer had been scheduled to expire at midnight October 21. Owens-Illinois said that as of Oct 19, 1,598,789 common shares, or about 13 pct of the outstanding shares of Brockway have been tendered. It said it and Brockway are preparing responses to the previously announced request for additional information from the Federal Trade Commission under the Hart-Scott-Rodino Act. The Owens-Illinois subsidiary, which began the tender offer on September 23, will not be able to buy Brockway's common shares until 10 days following Owens-Illinois compliance with the FTC request or other conditions.  
WELBILT <WELB.O> ACQUIRES FOOD HANDLING SYSTEMS. Welbilt Corp said it acquired <Food Handling Systems Inc> of Dallas, a producer of commercial ovens, conveyers and proofer systems. Terms of the transaction were not disclosed. Food Handling, which also produces equipment for the commercial baking industry, was privately owned by Richard Shumway of Mesa, Ariz., and Vic Ferrara of Dallas, both of whom will remain with the company. The company has manufacturing facilities in Dallas and Phoenix.  
AMEX SAYS BEAR STEARNS BOUGHT SPECIALIST UNIT. The American Stock Exchange said, as previously reported, that Bear Stearns and Co <BSC> has purchased <W. Damm, M. Frank and Co>, a specialist unit on the Amex trading floor. Amex said the unit, which trades stocks and options is small in comparison to other specialist units. The personel and operations remain the same, the exchange added. The price was not disclosed. A specialist unit is authorized by a stock exchange to deal as an agent for other brokers to keep a stable market in one or more particular stocks.  
DINNER BELL <DINB.O> LEVERAGE BUY OUT DROPPED. Dinner Bell Foods Inc said the talks concerning a proposed leveraged buy-out of the company have been terminated. A spokesman said the group led by Joseph F. Grimes II, a director of the company, and B. Rober Kill has withdrawn their proposal to acquire the company's stock for 23.50 dlrs a share. The company also said its board determined the previously postponed annual meeting will be held on January five.  
PAN AM <PN> SETS PACIFIC SATELLITE STAKE SALE. <Johnson Geneva U.S.A.> said it has agreed to buy Pan Am Corp's 50 pct holding in their joint venture company, Pan Am Pacific Satellite Corp, for undisclosed terms. Johnson Geneva said Pan Am divested owership in the project as part of a corporate restructuring plan, but will continue to provide engineering services on a contract basis. Johnson Geneva said the buy out was accomplished through <Onpraise Ltd>, a Hong Kong company controlled by Johnson Geneva Chairman Michael Johnson. Funds have been provided by Onpraise to increase the satellite company's working capita.  
TELEX <TC> ADOPTS SHAREHOLDER RIGHTS PLAN. Telex Corp said its board adopted a shareholder rights plan which will allow shareholders to purchase one common share for two dlrs if a hostile group acquires 15 pct or more of the company. However, the company said the plan will not be triggered by purchases pursuant to the 65 dlrs a share tender offer commenced on October 9 by a unit of TLX Partners, a group controlled by New York financier Asher Edelman. It said the rights will be distributed on a one for one basis to all shareholders as of October 30 and may be redeemed before they become exercisable at five cents per right. The company said the rights will expire on the later of February 17 next year or 60 days from the date they become exercisable. It said the plan was intended to protect stockholders against any attempt to take unfair advantage of the recent decline in stock prices or to use abusive tactics such as market accumulations which would interfere with its ability to maximize stockholder value. The rights become exercisable if any person or group acquires 15 pct or more of the company's common stock other than through an all cash tender offer for all outstanding shares at 65 dlrs per share. It said the rights will also not become exercisable if the company is acquired by a group under an agreement made with its board. A spokeswoman told Reuters the company would have an official response to Edelman's bid by Friday, Oct 23.  
CHASE ACQUIRES 370 MLN DLR REVOLVING CREDIT. The Chase Manhattan Bank, a unit of The Chase Manhattan Corp <CMB>, said it acquired a portfolio of about 190,000 consumer revolving credit accounts from Atlantic Financial Federal <ATLF.O> valued at 370 mln dlrs. The company said the acquisition makes Chase the second largest issuer of credit card and other unsecured consumer credit loans. Outstandings now exceed 5.6 billion dlrs, the company said. The company said the portfolio, accessed by checks, is similar to Chase's Advantage Credit product.  
<RESER'S FINE FOODS INC> TO GO PRIVATE. Reser's Fine Foods Inc said certain directors and officers, who currently represent about 85 pct of the company's stock, plan to take Reser's private through a cash buyout. The company said the group plans to offer 12.50 dlrs per share for the 15 pct of its stock currently outstanding.  
BANK OF NEW YORK REAFFIRMS TERMS FOR IRVING <V>. The Bank of New York Corp <BK> said it reaffirmed the terms of its offer for Irving Bank Corp despite the drop in the Bank of New York's share price to 30-1/8, a Bank of New York spokesman said. "The offer still stands, we have not changed our offer," a Bank of New York spokesman said. Irving would not comment on how the drop in the market affects its position on the bid or whether it would buy back any of its own shares. Earlier this month, Irving rejected the bid as inadequate and said it wanted to retain its independence. In late September, Bank of New York offered 80 dlrs per share in cash for 47.4 pct of Irving. For the remaining 52.6 pct, it offered an exchange of 1.9 shares of its shares for one Irving share. At that time, the stock purchase portion was worth close to 80 dlrs per share, but now that portion is worth 53 dlrs per share for a net price of 68 dlrs, one analyst said. According to the prospectus offer, shareholders may tender for all cash or all shares on a first come, first serve basis. Analysts were mixed about how the stock price drop would affect the acquisition. "If it gets to the Irving shareholders, they would approve it, but Irving hopes the offer won't go to the shareholders," said Mark Alpert, banking analyst with Bear Stearns Cos Inc. "And the market is saying the deal won't go through," Alpert said. "The transaction looks highly unlikely to be completed at present. If Irving wouldn't go with the offer at 80 dlrs a share, then they won't go at a lower price," another analyst said. The analyst also doubted that Bank of New York could afford to retain its original offer. However, industry sources were more uncertain about prospects for the deal. "With Irving's price so low, Bank of New York's offer will look good to Irving shareholders," said Michael Flores, a consultant at Bank Earnings International, a consulting firm. The drop of Irving's share to 44 dlrs per share, which is about a 26 dlr drop from the beginning of last week, increases the chance that Bank of New York will succeed, Flores said. Analysts said that the drop in bank stock prices is likely to depress the level of mergers and acquisition in the banking industry. "Bank takeovers are less likely because banks can't use their own stock to make acquisitions because their share price is too depressed," Alpert said. Since only banks can buy another bank, the only other possible acquirors would be a foreign bank, Alpert said. "In the market drop the stock of acquirors got clobbered more than the acquirees," another analyst said.  
DART GROUP SAID IT WILL NOT SOLICIT PROXIES OR ATTEMPT TO ACQUIRE DAYTON HUDSON.  DART GROUP SAID IT WILL NOT SOLICIT PROXIES OR ATTEMPT TO ACQUIRE DAYTON HUDSON  
DART SAID IT SOLD 1.4 MLN DAYTON HUDSON SHARES, EXPECTS TO SELL REST OF HOLDING.  DART SAID IT SOLD 1.4 MLN DAYTON HUDSON SHARES, EXPECTS TO SELL REST OF HOLDING  
GROUP LIFTS AIRLEASE <FLY> STAKE TO 15.1 PCT. A group of firms led by PS Group Inc <PSG> said it increased its stake in Airlease Ltd depositary units representing limited partners interest to 700,400 units, or 15.1 pct of the total outstanding, from a previous figure of approximately 651,000 units, or 14 pct. In a filing with the Securities and Exchange Commission, the group said it bought 49,400 Airlease units between July 16 andf October 15 at 17.23 dlrs to 17.60 dlrs a share. No reason was given for the recent purchases.  
METROPOLITAN <MONY.O> TO MAKE OFFER FOR METEX. Metropolitan Consolidated Industries Inc said it will make a tender offer for all or any of the outstanding shares of common stock of Metex Corp <MTX> not currently held by or under option to Metropolitan for 7.75 dlrs per share. The company said the offer will be subject ot securing satisfactory financing. Metropolitan currently owns about 25.7 pct of Metex common and holds options to purchase about an additional 16 pct of Metex common stock.  Metropolitan said the offer will be made no later than October 27.  
TRACE PRODUCTS <TRCE.O> MERGER AGREEMENT SUSPENDED. Trace Products Inc said its stock-swap merger agreement with privately held Central Point Software has been suspended indefinitely because of uncertainty in the stock market. Trace Products, which manufactures diskette and tape duplication equipment for software publishers, had earlier agreed to acquire Portland, Ore.-based Central Point for 5.5 mln shares of its common stock.  
GROUP LIFTS STAKE IN SUAVE SHOE<SWV> TO 11.5 PCT. A shareholder group including Entregrowth Interational Ltd, of Auckland, New Zealand, said it lifted its stake in Suave Shoe Corp common stock to 319,600 shares, or 11.5 pct of the total outstanding, from a previous figure of approximately 238,400 shares, or 8.6 pct. In a filing with the Securities and Exchange Commission, the group said it bought 81,200 Suave Shoe common shares in open market transactions between October 1 and 19 at 8.34 dlrs to 10.07 dlrs a share. No reason was given for the purchases.  
SOUTHLAND <SLC> TARGETED IN SEC INVESTIGATION. Southland Corp said it was told the Securities and Exchange Commission ordered a private investigation into Southland stock trading and statements made by the company this year. "Southland has been advised that the Commission has issued a private order of investigation concerning the trading of Southland stock during various times in 1987 and the issuance of various public statements by Southland," Southland said in a proxy statement to shareholders. Southland did not elaborate on the SEC order of investigation, and company officials could not be reached for comment late Tuesday. The SEC has a long-standing policy against confirming or denying the existence of investigations. The proxy statement, filed with the Securities and Exchange Commission, is required for a November 5 shareholders meeting called to approve the previously announced acquisition of Southland by a company controlled by Southland chairman John Thompson and members of his family. Earlier this year, a group led by Thompson acquired majority ownership of Southland through a 77 dlrs a share tender offer for 31.5 mln shares of Southland common stock. If the merger is approved, common stock still outstanding will be converted into the right to receive 61.32 dlrs a share in cash plus a fraction of a share of preferred stock.  
EDELMAN GROUP COMMITTED TO TELEX <TC> BID. TLX Partners, a group led by Asher Edelman, does not see any problems with its 65 dlr per share bid for Telex Corp, a Shearson Lehman official advising the group said. Several other takeover proposals have crumbled following declines in financial markets, leading to speculation that Edelman might also drop his offer. Telex fell 11 to 34-1/4. Earlier today, Carl Icahn dropped his bid to take Trans World Airlines Inc <TWA> private and Dart Group Corp <DARTA.O> said it abandoned plans to acquire Dayton Hudson Corp <DH>. Both cited market conditions. "Nothing fundamental has changed with the company. The stock price has changed, but the company hasn't changed so there's no reason for us to change," said Daniel Good, head of Shearson Lehman merchant banking. "Things are proceeding as planned, and we fully expect that at the time we have to pay for the shares the financing will be in place," Good said. Shearson has agreed to provide bridge financing of up to 600 mln dlrs for the Edelman group.  
FIRST COMMERCIAL <FCOB.O> TO ACQUIRE CITIZENS BANK. First Commercial Bancorp said it will acquire the three-branch Citizens Bank of Roseville in a stock swap. The value of the agreement will be based on Citizens' adjusted book value at year end and the trading price of First Commercial's stock. Citizens' book value was about 1.9 mln dlrs at the end of the third quarter, according to the bank's counsel, Guy Gibson. Under the agreement, Citizens shareholders could also trade their stock for a five-year debenture issued by First Commercial. Terms of the debenture have not been established.  
UNITED ARTISTS <UACI.O> SUSPENDS MERGER TALKS. United Artists Communications Inc and <United Cable Television Corp> said they have indefinitely suspended negotiations on a proposed merger of their companies previously announced. The companies cited a combination of extraordinary market conditions and unresolved terms of the merger as contributing to the action.  
SOUTHMARK <SM> TO PURCHASE <NATIONAL SELF>. National Self Storage said has sold nine storage facilities to Southmark Corp for 37.1 mln dlrs. National Self, a developer of storage space for business records, said the purchase includes nine storage facilties. National Self also said it and Southmark plan a two-year 100 facility expansion program in South Florida and across the country.  
FIFTH THIRD <FITB.O> TO MERGE WITH C AND H. Fifth Third Bancorp and <C and H Bancorp> said they reached a preliminary agreement to merge. C and H Bancorp has assets of 257 mln dlrs and is the parent company of Citizens Heritage Bank N.A. The companies said the agreement calls for each of the about one mln shares of C and H Bancorp to be exchanged for one share of Fifth Third Bancorp. Based on its financial expectations, Fifth Third said the dilution in per share earnings for the merger will be negligible.  
GREAT ATLANTIC <GAP> WITHDRAWS DECHAMPS BID. The Great Atlantic and Pacific Tea Co Inc said it withdrew its offer to acquire Delchamps Inc <DLCH.O> for 27 dlrs a share or about 175 mln dlrs, which was made earlier this month. Michael Rourke, A and P vice president, said the company withdrew the offer because Delchamps did not respond favorably to it and because of market conditions. He would not comment on whether A and P would make another offer to acquire Delchamps.  
GREAT ATLANTIC AND PACIFIC TEA CO SAID IT WITHDREW ITS OFFER TO BUY DELCHAMPS INC.  GREAT ATLANTIC AND PACIFIC TEA CO SAID IT WITHDREW ITS OFFER TO BUY DELCHAMPS INC  
MEDIA GENERAL <MEGA> FAMILY WONT SELL SHARES. Media General Inc's chairman, D. Tennant Bryant, said his family would not sell its controlling share block, so it would be impossible for an investor group led by <Giant Group Ltd> to gain control of the company. The investor group, which includes Barris Industries <BRRS.O>, recently reported that it acquired a 9.8 pct stake of Media General's class A shares and might seek control. Bryant said the company's class A stock elects only 30 pct of the board, with the remaining 70 pct being elected by class B shares, two-thirds of which are controlled by the Bryant family trust, which has no intention of selling its shares.  
PARTNERSHIP INCREASES GULL <GLL> HOLDINGS. Gary Associates LP, which said previously it may seek control of Gull Inc, said it increased its stake in Gull common stock to 388,900 shares, or 7.7 pct of the total outstanding, from a previous figure of approximately 318,000 shares, or 6.2 pct. In a filing with the Securities and Exchange Commission, Gary Associates said it made net purchases of 70,900 Gull common shares at 15 dlrs to 18.62 dlrs a share. Gary Associates made no mention of a possible takeover attempt in its report to the SEC.  
MEDIA GENERAL SAYS GIANT GROUP, AFFILIATES HAVE 9.8 PCT OF CLASS A COMMON STOCK.  MEDIA GENERAL SAYS GIANT GROUP, AFFILIATES HAVE 9.8 PCT OF CLASS A COMMON STOCK  
PEPSICO UNIT <PEP> LIFTS <CALNY.O> STAKE. Taco Bell Corp, a unit of Pepsico Inc, said it increased its stake in Calny Inc common stock to 1,349,884 shares, or 27.9 pct of the total outstanding, from a previous figure of approximately 1,230,107 shares, or 25.4 pct. In a filing with the Securities and Exchange Commission, Taco Bell said it bought 119,867 Calny common shares on October 15 and 16 at 10.75 dlrs a share. No reason was given for the recent purchases.  
MACYRO GROUP <MYO.M> BUYS COMPANIES. Groupe Macyro Inc said it agreed to buy two Quebec construction wholesalers, (Nap Dumont (1982) Ltd) and (Nap Transport Cie Ltd) for 3.5 mln dlrs. Macyro said the two companies operate in the construction material, electiricty, plumbing, hardware and locksmithing sectors and had sales of 23.5 mln dlrs last year.  
GULF AND WESTERN <GW> TO ACQUIRE BRITISH COMPANY. Gulf and Western Inc's publishing unit, Simon and Schuster, said it agreed in principle to acquire <Woodhead-Faulkner (Publishers) Ltd>, a British-based publisher of professional and consumer books, for undisclosed terms. Upon completion of the proposed transaction, Woodhead-Faulkner will become part of Simon and Schuster's International Group, which in the U.K. includes Simon and Schuster trade books, and Prentice Hall academic texts. Simon and Schuster said that Woodhead-Faulkner will continue to publish under that name. The company will continue to be under the direction of Martin Woodhead, who will report to Henry Hirschberg, president of Simon and Schuster's International Group. Woodhead-Faulkner, founded in 1972, publishes international banking, finance, and investment books.  
SIMON AND SCHUSTER TO ACQUIRE WOODHEAD-FAULKNER OF THE U.K. FOR UNDISCLOSED TERMS.  SIMON AND SCHUSTER TO ACQUIRE WOODHEAD-FAULKNER OF THE U.K. FOR UNDISCLOSED TERMS  
CCR VIDEO<CCCR.O> GETS OFFER ON TAKEOVER TALKS. CCR Video Corp said it received an offer to enter into negotiations for <Intercep Investment Corp> of Vancouver, B.C., to acquire a controlling interest in the company through a tender offer. CCR said the negotiations would determine the terms under which the CCR board could support an Intercep tender offer. Additional details were not immediately available.  
CCR VIDEO SAYST RECEIVED OFFER TO NEGOTIATE A TAKEOVER BY INTERCEP INVESTMENT CORP.  CCR VIDEO SAYST RECEIVED OFFER TO NEGOTIATE A TAKEOVER BY INTERCEP INVESTMENT CORP  
BROWN DISC TO BUY RHONE-POULENC <RHON.PA> UNIT. Brown Disc Products Co Inc, a unit fo Genevar Enterprises Inc, said it has purchased the ongoing business, trademarks and certain assets of Rhone-Poulenc's Brown Disc Manufacturing unit, for undisclosed terms. Rhone-Poulenc is a French-based chemical company. Under the agreement, Rhone-Poulenc will supply magnetic tape and media products to Brown Disc Products.  
U.K. TREASURY CONFIRMS BP SALE TO GO AHEAD. The British Treasury confirmed that the sale of British Petroleum Co Plc will go ahead as planned, despite Monday's stock market crash which forced BP below the 330p a share set for the 7.2 billion stg issue. "The government are not considering terminating the BP offer. The offer has been fully underwritten," a Treasury spokesman said. The issue, which remains open until October 28, was fully underwritten last week when the issue price was set. BP shares closed down 33p at 317p as the FT-SE 100 share index crashed a record 249.6 points, more than 10 pct.  
CALMAT <CZM> SUES INDUSTRIAL EQUITY. CalMat Co said it filed suit in Los Angeles Superior Court against Industrial Equity (Pacific) Ltd, against certain of its affiliates and against Ronald Langley, president of Industrial Equity's North American operations. The company said its sut charges that Langley missapropriated material non-public information acquired in his capacity as a CalMat director and used the information for the benefit of Industrial Equity. According to its more recent amendment to its Schedule 13D, Industrial Equity owned about 19.17 pct of CalMat's stock at October 14, CalMat said. It said Industrial has also stated that it intends to pursue a possible business combination in the near future.  
DURAKON <DRKN.O> TO MAKE ACQUISITION. Durakon Industries Inc said it has entered into a definitive agreement to acquire DFM Corp, a maker of bug and gravel protective shields for trucks and cars, for an undisclosed amount of cash and debentures, retroactive to September One.  
ATLANTIS <AGH> MAY BID FOR CHARTER-CRELLIN<CRTR.O>. Atlantis Group Inc said it bought 100,000 shares of Charter-Crellin Inc common stock, or 6.3 pct of the total outstanding, and may seek control in a negotiated transaction. In a filing with the Securities and Exchange Commission, Atlantis said it has informally discussed a business combination with Charter-Crellin management. But the company said it has not held negotiations with Charter-Crellin and does not intend to initiate further discussions. Pending development of specific proposals, Atlantis said it will continue to purchase additional Charter-Crellin shares in private or open market transactions depending on a range of factors including the market price of the stock. Atlantis said it bought its Charter-Crellin common stock in open market transactions between September 22 and October 7 at 14.91 dlrs to 15.62 dlrs a share, or for a total of about 1.51 mln dlrs.  
ALLWASTE <ALWS.O> TO MAKE ACQUISITION. Allwaste Inc said it has agreed in principle to acquire a privately-held firm that performs interior cleaning services for tank-trailers for 1,300,000 common shares. It said the firm, which it did not name, earned about 1,500,000 dlrs pretax for the first nine mons of 1987. The company said closing is expected by October 31.  
HENLEY <HENG.O> ENDS TALKS WITH SANTE FE. Henley Group Inc said it ended talks with Sante Fe Southern Pacific Corp concerning the possible acquisition of Sante Fe's Southern Pacific Transportation Co subsidiary. The company also said it is reviewing its investment in Santa Fe Southern Pacific in light of Sante Fe's announcement that it recieved several bids ranging from 750 mln dlrs to more than one billion dlrs for its Southern Pafific Transportation subsidiary.  Henley said it held discussions with Sante Fe concerning the acquisition by Henley of Bankers Leasing and Financial Corp and certain Sante Fe transportation and real estate assets. Henley said it began talks with Sante Fe after it announced its restructuring program in August 1987. As previously disclosed, Henley made necessary filings under the Hart-Scott-Rodino Antitrust Improvement Acts to permit Henley to increase its investment in Sante Fe to 24.9 pct of the outstanding common stock from 5.03 pct.  Henley said that depending on prevailing conditions, including price and availability of Sante Fe stock, substantial developments affecting Sante Fe, other investment and business opportunities available to Henley, Henley may additional Sante Fe shares, or sell all or part of its investment in Sante Fe.  
TEXAS AMERICAN BANCSHARES <TXA> TO SELL UNIT. Texas American Bancshares Inc said it agreed to sell its Texas American Bank/Levelland unit to <First American Bancorp Inc> for about 12 mln dlrs in cash. Texas American said regulatory approval ofthe transaction is expected in December, and the sale will close shortly thereafter. Once the sale is completed, the unit's name will change to First American Bank of Texas. The unit reported total assets of 196.7 mln dlrs on Juen 30, 1987.  
SUPERMARKETS GENERAL <SGL> SELLS 11 DRUG STORES. Supermarkets General Corp said it agreed to sell 11 super drug stores to <F and M Distributors>. The nine existing and two unopened stores are located in Maryland, Virginia and upstate New York and are operated under the Pathmark Super Drug trade name, the company said. Terms of the transaction were not disclosed. The nine existing stores generated approximately 34.8 mln dlrs of Supermarkets General's total sales of 2.9 billion during the six-month period ended Aug One, 1987. F and M Distributors operates 42 discount drug stores in Michigan, Ohio, Illinois, Indiana and Wisconsin.  
ATLANTIS GROUP TELLS SEC IT SEEKS NEGOTIATED PURCHASE OF CHARTER-CRELLIN.  ATLANTIS GROUP TELLS SEC IT SEEKS NEGOTIATED PURCHASE OF CHARTER-CRELLIN  
DYNASCAN <DYNA.O> COMPLETES MANAGEMENT BUYOUT. Dynascan Corp said it completed the sale of its industrial electronic products group and expects to recognize about a 3.0 mln dlr pretax gain on the transaction in the fourth quarter. It said the group was sold October 15 for 13.5 mln dlrs to Maxtec International Corp, a privately held company created by the company's management team. It said the purchase price was 12 mln dlrs in cash and 1.5 mln dlrs in five-year notes plus warrants to buy 7.0 pct of the stock of Maxtec. Dynascan said the group was projected to provide about 12 pct of its consolidated sales in 1987.  
HENLEY GROUP REVIEWING INVESTMENT IN SANTA FE SOUTHERN PACIFIC.  HENLEY GROUP REVIEWING INVESTMENT IN SANTA FE SOUTHERN PACIFIC  
HENLEY GROUP SAID IT ENDED TALKS ON BUYING SOUTHERN PACIFIC FROM SANTA FE SOUTHERN.  HENLEY GROUP SAID IT ENDED TALKS ON BUYING SOUTHERN PACIFIC FROM SANTA FE SOUTHERN  
RENTA INMOBILIARIA SEEKS CANNON GROUP <CAN> ASSETS. Spanish property firm <Renta Inmobiliaria SA> is negotiating to buy the property assets of U.S. media company Cannon Group Inc <CAN>, Renta's finance director Jose Luis Sanchez said. Sanchez told Reuters that Renta's chairman Juan Antonio Robles was currently in the U.S. to negotiate the deal but declined to give other details. Interpart, a Luxembourg-based holding company chaired by Italian financier Giancarlo Paretti, payed around 12.2 billion pesetas in July to acquire a 63.5 pct stake in Renta Inmobiliaria. The Spanish daily newspaper El Pais said the Cannon property assets sought by Renta included the Elstree film studios in Britain and a chain of movie-theaters in Europe and the U.S.  
GROUP SELLS MOST OF STAKE IN CCX INC <CCX>. A shareholder group including Far Hills, N.J. attorney Natalie Koether said it reduced its stake in CCX Inc common stock to 10,000 shares, or less than one pct of the company's common stock outstanding, from a previous stake of about ten pct. In a filing with the Securities and Exchange Commission, the group said it sold 380,000 CCX common shares on October 15 at four dlrs a share. The group gave no reason for the sales.  
ORION <OC> HAS 5.2 PCT TWIN DISC <TDI> STAKE. Orion Capital Corp said it acquired 163,000 shares of Twin Disc Inc common stock, or 5.2 pct of the company's common stock outstanding. In a filing with the Securities and Exchange Commission, Orion Capital said the stock represents "a favorable investment opportunity at current market prices." In open market transactions between August 21 and October 16, an Orion Capital subsidiary bought 56,200 Twin Disc common shares at 21.06 dlrs to 22.43 dlrs a share. The entire 5.2 pct stake was purchased at a cost of 3.2 mln dlrs, Orion Capital told the SEC.  
NORTHEAST SAVINGS <NSB> ADOPTS RIGHTS PLAN. Northeast Savings F.A. said its board adopted a shareholder rights plan designed to protect the company from coercive takeover tactics and bids not fair to all sharholders. Under the plan, the board declared a dividend of one share purchase right for each of the Northeast common shares held of record as of November two, the company said. Initially, the rights are not exerciseable, rights certificates are not distributed, and the rights automatically trade with Northeast's shares, the company said. However, 20 days following the acquisition of 20 pct or more of Northeast's common shares shares or 20 days following the commencement of a tender offer for 30 pct or more of Northeast's shares, the rights will become exerciseable and separate rights certificates will be distributed, the company said. The rights will entitle holders of Northeast's common shares to purchase additional shares at an exercise price of 60 dlrs a share, the company said. The company said that in the event of certain triggering events described in the rights plan, holders of the rights, other than an acquiring person, will be entitled to acquire Northeast's common shares having a market value of twice the then-current exercise price of the rights. Also, in the event Northeast enters into certain business combination transactions, holders of the rights will be provided a right to acquire equity securities of the acquiring entity having a market value of twice the then-current exercise price of the rights, the company said. Northeast said it will be entitled to redeem the rights at one cent per right until the occurence of certain events.  
19-OCT-1987. 19-OCT-1987 
CCR VIDEO <CCCR.O> IN TALKS ON BEING ACQUIRED. CCR Video Corp said it has received an offer to enter into negotiations for <Intercep Investment Corp> to acquire a controlling interest through a tender offer. The company said "The negotiations would determine the terms under which the CCR board of directors could support the INTERCEP tender offer." It gave no further details.  
WILLIS FABER NOT SELLING MORGAN GRENFELL STAKE. <Willis Faber Plc> said its 20.8 pct holding in stockbrokers Morgan Grenfell Group Plc <MGFL.L> was not up for sale. The insurance broker issued a statement in reply to recent press speculation which it said was in part "inaccurate and undesirable." "Willis Faber has not received any offers for its stake in Morgan Grenfell," it said, adding that an offer would have to be considered on its merits. "Willis Faber's stake in Morgan Grenfell has been a very successful investment," it said.  
M.A. HANNA CO <HNM> TO ACQURE <PMS CONSOLIDATED>. M.A. Hanna Co said it has reached definitive agreement to purchase PMS Consolidated, a privately owned manufacturer of colorants for the plastics industry. M.A. Hanna said the purchase, which is subject to certain conditions, is scheduled to close around the end of October. Hanna announced last August that it was in negotiaitons to purchase the company. Headquartered in Somerset, N.J., PMS reported over 70 mln dlrs in revenues in its last fiscal year, which ended May 1987.  
COMMUNICATIONS AND CABLE <CCAB.O> BUYS STAKE. Communications and Cable Inc said it acquired about 21 pct of the outstanding shares of Imnet Corp, a privately owned company that designs, makes and services proprietary image storage and retrieval systems. Terms were not disclosed.  
BALTEK <BTEK.O> BUYS ECUADORIAN PLANT. Baltek Corp said it has acquired a shrimp packing plant in Ecuador for undisclosed terms. The company said the acquisition will result in a tripling of its Ecuadorian shrimp sales to about three mln pounds annually by 1988.  
BANCTEXAS <BTX> TO SELL AFFILIATE. BancTEXAS Group Inc said it has signed a definitive agreement to sell its BancTEXAS Sulphur Springs affiliate to a group of local investors led by Gene Watson for a cash amount equal to book value at the time of the sale, subject to regulatory approvals. The unit had assets of 18.2 mln dlrs as of September 30. BancTEXAS said it plans to concentrate on its primary market, the Dallas area.  
ALLWASTE <ALWS.O> TO ACQUIRE FIRM. Allwaste Inc said it entered into an agreement in principle to buy Tank Cleaning Co, a privately-held company that cleans tank trailers, in exchange for about 1.3 mln shares or Allwaste common. Allwaste said that Tank Cleaning earned about one mln dlrs before taxes last year and had about 1.5 mln dlrs in pre-tax income for the nine months ended September 30.  
BARING UNIT SETS UP FUND FOR MANAGEMENT BUY-OUTS. Baring Capital Investors Ltd (BCI), a unit of the U.K. Merchant bank <Baring Brothers and Co Ltd>, said it has raised 61 mln European Currency Units (ECUs) which will be invested in management buy-outs and development capital opportunities in the U.K. And continental Europe. The funds were raised through BCI's first such fund - the Baring Euaring European Capital Trust - from investors in nine European countries. It expects to raise another 40 mln ECUs soon through a French fund and a fund for U.S. Investors. BCI was set up last year by Baring Brothers to advise buy-out and development capital investors. BCI said the new fund is structured as a Guernsey-based unit trust, which will be listed on the Luxembourg Stock Exchange. It will be advised by BCI and managed by a company owned jointly by Barings and the management of BCI. Individual investments are expected to range between one and 10 mln ECUs and are likely to be concentrated in the U.K., Germany and France. BCI said its aims are to invest in established companies, principally family companies with succession-issues and corporate spin-offs.  
CRAZY EDDIE <CRCY.O> WON'T OPPOSE SLATE. Crazy Eddie Inc said its board will not oppose the slate of nominees proposed for election to the board by the committee led by Entertainment Marketing Inc <EM> and the <Oppenheimer-Palmieri Fund, LP.> Crazy Eddie said its board is not endorsing, but will simply refrain from opposing, the EMI-Palmieri nominees. The board also said it will ask representatives of the Committee to Restore Shareholder value to begin acquainting themselves with the business and affairs of the company as promptly as possible.  To that end, the committee's representatives will be invited in advance of the annual meeting to examine the company's financial records, to monitor its operations and to join company officers in meetings with the company's suppliers, bankers and key personnel, Crazy Eddie said. The board said that to continue to oppose the EMI-Palmieri group would only increase the expenses of the company, create further uncertainty among its suppliers, customers and employees, and result in deterioration of moral among company personnel. A further release from the company will follow, it said.  
SOSNOFF REDUCES CAESARS WORLD <CAW> STAKE. New York investor Martin Sosnoff said he reduced his stake in Caesars World Inc common stock to 3,878,700 shares, or 16 pct of the company's common stock outstanding, from about 17.4 pct. Sosnoff, who tried unsuccessfully to acquire Caesars World earlier this year, said in a filing with the Securities and Exchange Commission that he sold 338,975 Caesars World shares on October 15 and 16 at 22.50 dlrs to 25.25 dlrs a share. Sosnoff said he holds his Caesars World stock "primarily for investment purposes". He also said he reserves the right to alter his intentions at any time.  
CRAZY EDDIE INC SAYS IT WON'T OPPOSE SLATE OF ENTERTAINMENT MARKETING.  CRAZY EDDIE INC SAYS IT WON'T OPPOSE SLATE OF ENTERTAINMENT MARKETING  
HAL ROACH <HRSI.O>, ROBERT HALMI <RHI> TO MERGE. Robert Halmi Inc said it and Hal Roach Studios Inc signed a definitive agreement to merge in a stock swap value at 115 mln dlrs, based on October 16 closing prices. The company said the agreement calls for the holders of common stock in Hal Roach to exchange their shares on a one-for-one basis for shares in the combined company. It said holders of Robert Halmi common will exchange their shares on a two-and-one-half-for-one basis for shares in the combined company. The company said the swap will be tax-free. The company also said <Qintex Ltd>, a 35 pct owner of Hal Roach common stock, has agreed to use the company as the exclusive vehicle for its U.S. media and entertainment investments, the company said. The company said Qintex's U.S. subsidiary also agreed to supply a minimum 70 mln dlrs line of credit to the new company, which shall be used, with Qintex approval, for financing new HRI products. The company said that under the definitive agreement, Qintex's U.S. division will have the right to purchase up to 51 pct of the new company in the open market, in private transactions or by tender offer, but will not be purchasing warrants to bring its ownership to 51 pct of the new company. If Qintex's U.S. subsidiary has not achieved this ownership within one year after the completion of the merger, the subsidiary will have the right two years thereafter to request that HRI commence a rights offering to HRI stockholders, the company said. Regarding the potential rights offering, Qintex's U.S. subsidiary will act as standby purchaser, the company said. The transaction is subject to the approval of both company's shareholders, the receipt of certain tax approvals, and the continued employement of Robert Halmi Sr and Robert Halmi Jr, the company said. Robert Halmi Sr, who is currently chairman and chief executive officer of Robert Halmi Inc, will be chairman of the new company and David Evans, current president and chief operating officer of Hal Roach, will become chief executive, the company said.  
SYSTEM SOFTWARE <SSAX.O> COMPLETES ACQUISITION. System Software Associates Inc said it completed its previously-announced acquisition of Admin EDP Pty Ltd for cash and a small amount of stock. Admin EDP, of Sydney, Australia, is a full-service software sales and services firm.  
CORBY DISTILLERIES <CDL.TO> TO BUY HEUBLEIN UNIT. Corby Distilleries Ltd said it has agreed to buy Toronto-based McGuinness Distillers Ltd from Heublein Inc for about 45 mln dlrs in a move which Corby expects to add significantly to domestic earnings. Heublin is a subsidiary of Grand Metropolitan PLC (GMHL.L). Corby said McGuinness will remain a seperate business unit with a seperate sales force. McGuinness markets liquers, brandy, and other liquors and has entered the fast-expanding wine cooler market, Corby said. Corby said it expects to benefit from McGuinness's succesfull introduction of schnapps and coolers and its strength in traditional market sectors. Heublein said the sale does not include McGuinness's Calona Wines Ltd, a Canadian wine company. Heublein said it is will still be represented in Canada by Gilbey Canada Inc. reuter  
NORTHVIEW <NOVC.O> PLANS TO SELL COMPANY. Northview Corp said it reached an agreement in principal covering the acquisition of the company by privately-held Calmark Financial Corp. The agreement calls for Northview to make a self-tender offer for all of its outstanding stock at a price of 22 dlrs per share in cash. Calmark, headquartered in Los Angeles, develops, manages and syndicates real estate, Northview also said.  
CORBY DISTILLERIES LTD TO BUY HEUBLEIN'S MCGINNESS DISTILLERS FOR 45 MLN CANADIAN DLRS.  CORBY DISTILLERIES LTD TO BUY HEUBLEIN'S MCGINNESS DISTILLERS FOR 45 MLN CANADIAN DLRS  
MEDIA GENERAL <MEG> HOLDERS MAY SEEK CONTROL. A shareholder group led by Barris Industries Inc <BRSS.O> said it acquired a 9.8 pct stake in Media General Inc Class A common stock and may seek seek contorl of the company. In a filing with the Securities and Exchange Commission, the group said it holds 2,711,000 shares of Media General commons stock purchased at a total cost of about 108.3 mln dlrs. In addition to the possible bid for control, the group said it may purchase additional Media General shares or possibly seek one or more seats on the company's board of directors through a proxy contest. A bid for control of Media General would be subject to "a recapitalization or possible restructuring and to possible changes in the charter documents and by-laws of the company," it said. The group said it had held discussions with third parties to gauge their interest in joining the shareholder group, but no agreements were reached. Talks with third parties are expected to continue, the shareholder group said. Between October 13 and 16, Barris Industries bought 1,322,200 shares of Media General Class A common stock 42.50 dlrs to 45.50 dlrs a share in open market transactions, and another 12,000 shares privately.  
S-K-I <SKII.O> TO BUY CALIFORA SKI AREA. S-K-I Ltd and <Goldmine Ski Associates Inc> said they reached an agreement calling for S-K-I to buy Goldmine's California ski area for approximately 10 mln dlrs. S-K-I, which owns Killlington and Mount Snow ski resorts in Vt., said the California ski area is located in the San Bernardino mountains. The company said it plans to invest approximately 10 mln dlrs into the ski area in the next few years.  
ALLEGIS'<AEG>WESTIN SETS NEWS CONFERENCE ON SALE. Westin Hotels and Resorts, a subsidiary of Allegis Corp, said it will hold a press conference on October 21 near San Francisco to discuss the pending sale of the 61-hotel chain by Allegis. Allegis has said that it plans to sell Westin buyt has not announced that a deal has been set.  
CAL FED INCOME <CFI> BUYS TWO SHOPPING CENTERS. Cal Fed Income Partners L.P. said it has acquired two shopping centers for a total price of 18.4 mln dlrs. The company said it bought Best Plaza Shopping Center in Pleasanton, Calif., For 12 mln dlrs and Bristol Place Shopping Center in Santa Ana, Calif., for 16.4 mln dlrs.  
SHAMROCK CAPITAL COMPLETES CENTRAL SOYA SALE. Shamrock Capital L.P, a limited partnership led by Shamrock Holdings Inc, said it completed its sale of Central Soya Co Inc to Ferruzzi Agricola Finanziaria of Italy. Under terms of the sale agreement, which was announced on September 15, Ferruzzi acquired all the equity in Central Soya and assumed subordinated term debt of about 195 mln dlrs in a transaction valued at about 370 mln dlrs.  
BARRIS IND. SAYS IT LEADS GROUP WITH 9.8 PCT OF MEDIA GENERAL, MAY SEEK CONTROL.  BARRIS IND. SAYS IT LEADS GROUP WITH 9.8 PCT OF MEDIA GENERAL, MAY SEEK CONTROL  
TRANSAMERICA <TA> UNIT BUYS REINSURANCE UNIT. Transamerica Insurance Group, the main property-liability insurance operation of Transamerica Corp, said it signed a definitive agreement to acquire a newly-formed insurer, Commerical Risk Underwriters Insurance Co, from <Clarendon Group Ltd>. Transamerica said the unit, which will be renamed Transamerica Reinsurance Co, will initially be capitalized at about 185 mln dlrs. Transamerica said the acquisition represents its first move into specialty treaty reinsurance. The company said about 28 members of Clarendon will join Transamerica as part of the acquisition, which is expected to close in November and is subject to various regulatory approvals.  
INDUSTRIAL EQUITY HAS 5.4 PCT OF TRITON <OIL>. A group of firms led by Hong Kong-based Industrial Equity (Pacific) Ltd, said it acquired 969,515 shares of Triton Oil Corp common stock, or 5.4 pct of the company's common stock outstanding. Industrial Equity (Pacific), which is controlled by Brierley Investments Ltd <BRYW.WE> and which has applied with U.S. antitrust regulators to buy up to 50 pct of Triton's common stock, said the current 5.4 pct stake was acquired for investment purposes. The company said it informed Triton of its present "good faith intention" to buy more than 15 mln dlrs worth of Triton stock. It said it also told Triton it "may depending on market conditions acquire 50 pct or more and possibly 100 pct of the voting securities of (Triton)." It said it received clearance to buy up to 50 pct of the stock on September 11. Industrial Equity (Pacific) reported it bought 250,000 shares of Triton common stock on October 8 at 22.50 dlrs a share.  
MULTIFOODS <IMC> FILES SUIT AGAINST BREGMAN. International Multifoods Corp said it filed a suit charging Bregman Partners and its affiliates unlawfully planned to acquire control of the company. In a suit filed in U.S. District Court, International Multifoods said Bregman Partners and its affiliates, who reportedly hold 7.4 pct of the company's shares, tried to induce Multifood's management to join them in an effort to take the company private and give controlling interest to Bregman Partners. Bregman Partners include the interests of the Belzberg families of Canada. The complaint also discloses that on each occasion, Multifoods management rejected the group's overtures. Multifoods is asking Bregman's group to divest its shares in open market sales in a manner not to further disrupt the market place, according to the suit. The suit seeks compensatory and punitive damages in an amount to be determined. In addition, Multifoods is seeking to stop Bregman Partners from acquiring any more stock, or voting the shares it reportedly owns, the suit said. According to Multifoods, the actions proposed by Bregman Partners would prevent shareholders from realizing the full benefits of the company's restructuring. In the past three years, Multifoods has substantially altered its domestic business mix by divesting its U.S. consumere foods operations and emphasizing growth in selected segments of the U.S. foodservice industry.  
INDUSTRIAL EQUITY TO MAKE PROPOSAL TO CALMAT<CZM>. Industrial Equity (Pacific) Ltd, a Hong Kong-based investment firm leading a group holding 19.1 pct of Calmat Co's common stock, said it intends to submit to Calmat a proposal for a possible business combination. In a filing with the Securities and Exchange Commission, Industrial Equity (Pacific) did not disclose details of the proposal, but said it would be delivered to Calmat in the near future. Industrial Equity (Pacific) "does not intend to remain a passive investor" in Calmat, the firm told the SEC. In its SEC filing, Industrial Equity (Pacific) said its president of North American operations Ronald Langley met with Calmat officials on October 14 to discuss an acquisition of the company at a premium over the market price of Calmat stock. Industrial Equity (Pacific) added it is considering launching a tender offer for Calmat stock or making a merger proposal to the company, but said it has not decided whether it will pursue a Calmat acquisition on a non-negotiated basis. Industrial Equity (Pacific), which currently holds 5.83 mln Calmat common shares, said it is also evaluating the company's recently adopted shareholder rights plan and its potential effect on Calmat and on possible acquisition proposals made to the company. Between October 2 and 14, Industrial Equity (Pacific) bought 918,900 shares of Calmat common stock at 33 dlrs to 37.55 dlrs a share, or a total of about 33.8 mln dlrs.  
OREGON STEEL BUYS KAISER'S NAPA VALLEY PLANT. Kaiser Steel Corp's plant in Napa, Calif, has been purchased by Oregon Steel Mills for 16 mln dlrs, the privately owned Portland company said. The transaction was approved by the U.S. bankruptcy judge in Denver who is hearing Kaiser Steel's Chapter 11 reorganization case. James Mccaughey, former vice president of sales for Kaiser, has been named general manager for the plant, which will be called Napa Pipe Corp, Oregon Steel said.  
INDUSTRIAL EQUITY TELLS SEC IT WILL SEND CALMAT PROPOSAL FOR BUSINESS COMBINATION.  INDUSTRIAL EQUITY TELLS SEC IT WILL SEND CALMAT PROPOSAL FOR BUSINESS COMBINATION  
IDC SERVICES <IDCS.O> HOLDERS OFFERED 16 DLRS. IDC Services Inc said a new company will begin a cash tender offer by October 26 to acquire all of IDC's outstanding common for 16 dlrs a share. The company said the offer is being made under a definitive agreement reached with the new company, IDC Acquisition Corp, formed by Apollo Partners Ltd and investment clients of <Equitable Capital Management Inc>. The agreement calls for the acquisition of IDC for about 62.4 mln dlrs. IDC Acquisition will also tender for all of IDC's outstanding nine pct convertible subordinated debentures.  IDC said the merger agreement also provides for payment of an equivalent amount in respect of employee stock options to be cancelled in the merger. As part of the transaction, the company said, it granted IDC Acquisition an option to acquire up to 20 pct of the company's outstanding shares for 16 dlrs per share. It said the planned tender offer is subject to several conditions, including the tendering of over 50 pct of the company's outstanding stock.  MIM Holdings Ltd <MIMA.S>, a substantial shareholder in IDC, has agreed it will not buy any additional IDC shares until February seven and has granted IDC Acquisition a right of first refusal on any IDC shares it sells during that period, the company said. It said Apollo Partners was recently organized by three former senior Viacom Inc <VIA> executives, Terrence A. Elkes, George C. Catell and Kenneth F. Gorman.  
IC INDUSTRIES <ICX> MAY SELL AEROSPACE UNIT. IC Industries Inc said its board approved a second major step in the reorganization and restructuring of the company. To implement the plan of sharpening its strategic focus on consumer goods and services, the company will give serious consideration to the sale of its Pneumo Abex, its aerospace and defense company, if it can realize a price which will return maximum value to shareholders. In 1986, Pneumo Abex had operating income of 118.1 mln dlrs on sales of 900.5 mln dlrs. IC said it will use the proceeds of any asset sale to invest in new high-return businesses in the consumer goods and services field. The company said it authorized a program to repurchase between 500 mln dlrs and 1.0 billion dlrs of IC's common stock from time to time when conditions warrant. It also said it will begin an immediate cost-reduction program to cust annual operating expenses by 50 mln dlrs. An IC spokesman said the cost-reduction program involved "across-the-board" cuts rather than specific about targeted areas. IC's board earlier approved a plan to spin off the company's Illinois Central Gulf Railroad to shareholders. The company's other major subsidiaries are Pet Inc, Pepsi-Cola General Bottlers, Midas International Corp and Hussmann Corp.  
ARNOX <ARNX.O> STILL IN MERGER TALKS WITH TXL. Arnox Corp said a special committee of its board is continuing talks with <TXL Corp> on the terms of TXL's offer to acquire Arnox at 10 dlrs per share. It said TXL has arranged preliminary financing.  
IBC'S INTERSTATE BAKERIES<IBC>BID OVERSUBSCRIBED. IBC Acquisition Corp said it received about 8,857,807 Interstate Bakeries Corp shares in response to its tender offer for up to 8,053,181 shares that expired October 16, and it will purchase about 90.9 pct of the shares tendered. It said a final proration factor should be announced and payment for shares start October 26. IBC is made up of Interstate management, First Boston Inc <FBC> and George K. Braun and Co.  
OREGON STEEL BUYS KAISER'S NAPA VALLEY PLANT. <Kaiser Steel Corp>'s plant in Napa, Calif., has been purchased by Oregon Steel Mills for 16 mln dlrs, the privately owned Portland company said. The transaction was approved by the U.S. bankruptcy judge in Denver who is hearing Kaiser Steel's Chapter 11 reorganization case. James Mccaughey, former vice president of sales for Kaiser, has been named general manager for the plant which will be called Napa Pipe Corp, Oregon Steel said.  
CARSON PIRIE <CRN> TO START PROXY MAILING. Carson Pirie Scott and Co said it plans to start mailing proxy materials to stockholders in connection to a November 16 special meeting at which holders will be asked to consider a previously announced agreement with Greyhound Corp <G>. Under the agreement, Greyhound will acquire, in a merger, three of the company's foodservice operations - Dobbs International Services, Dobbs Houses and Carson international. If the transaction is approved, Carsons said its stockholders will receive 30 dlrs cash and one share of common in the new Carson Pirie Scott and Co for each share held.  
WOOLWORTH <Z> COMPLETING TENDER OFFER. FW Woolworth and Co said that 2,223,996 shares of Armel Inc's <AML> common stock were tendered to and accepted for payment by Woolworth, under the terms of the previosuly announced cash tender offer which expired at 2400 midnight EDT on October 16. In addition, Woolowrth said 137,367 Armel shares have been tendered subject to guaranteed delivery. Woolowrth said as a result of the tender offer and options which it has exercised to purchase Armel stock, FWW Acquisiton Corp, a Woolworth unit, today expects to own about 91.75 pct of Amrel's outstanding stock.  Woolworth said the percent it owns does not include 583,650 Class A shares of Armel, which were tendered or will be purchased pursuant to the options. As previuosly announced, FWW will now proceed with the cash merger in which all shares of Armel, other than those held by FWW or Woolworth, will be entitled to receive 7.75 dlrs per share. Woolworth said it expects to consummate the deal later this year. Armel is a specialty retailer of a broad line of athletic and leisure footwear, accessories and other sportswear.  
PROSPECT GROUP HAS 14.3 PCT OF BRINKMANN<BRIK.O>. New York-based Prospect Group Inc <PROSZ.O> said it acquired 527,000 shares of Brinkmann Instruments Inc common stock, or 14.3 pct of the scientific instrument maker's common stock outstanding. In a filing with the Securities and Exchange Commission, Prospect Group said it bought the 527,000 Brinkmann shares in open market transactions between August 12 and October 16 at 9.62 dlrs to 11.50 dlrs, or a total of 5.69 mln dlrs. Prospect Group said it bought the stock "to establish a significant minority equity interest in the company," but does not intend to seek control of Brinkmann at the present time. Prospect Group said it will review its investment objectives regarding Brinkmann as warranted by market conditions, the company's performance, and other factors including discussions with Brinkmann management.  
IC INDUSTRIES SAYS IT WILL CONSIDER POSSIBLE SALE OF ITS AEROSPACE BUSINESS.  IC INDUSTRIES SAYS IT WILL CONSIDER POSSIBLE SALE OF ITS AEROSPACE BUSINESS  
WARNER <WCI> HAS 8.2 PCT BERKEY INC <BKY> STAKE. Warner Communications Inc said its Warner Communications Investors Inc unit acquired stock and warrants representing 416,668 shares of Berkey Inc common stock, or the equivalent of 8.2 pct of the company's common stock outstanding. In a filing with the Securities and Exchange Commission, Warner Communications Investors said it paid about one mln dlrs to Berkey on September 23 to acquire 104,167 shares of Berkey Series B convertible preferred stock. The preferred stock is convertible into 208,334 Berkey common shares, and warrants to buy another 208,334 shares. Warner Communications and its subsidiary said the Berkey stock is held as an investment which they will review and evaluate from time to time.  
TELEX <TC> MAY SEEK OTHER PURCHASERS. Telex Corp said its board has directed management and financial advisor Drexel Burnham Lambert Inc to investigate possible alternatives to the tender offer of Asher Edelman's TLX Partners for all Telex shares that may include seeking other purchasers for Telex. The company said the board at an October 16 meeting decided to defer until a board meeting later this week a recommendation on the Edelman offer and said the board expects to make a recommendation by October 23.  
IBC ACQUISITION GETS 8,857,807 SHARES IN TENDER, TO BUY 90.9 PCT.  IBC ACQUISITION GETS 8,857,807 SHARES IN TENDER, TO BUY 90.9 PCT  
IDC SERVICES AGREES TO BE ACQUIRED FOR 16 DLRS A SHARE BY APOLLO PARTNERS GROUP.  IDC SERVICES AGREES TO BE ACQUIRED FOR 16 DLRS A SHARE BY APOLLO PARTNERS GROUP  
MANAGEMENT GROUP HAS RESTAURANT <RA> MAJORITY. Restaurant Associates Industries Inc said the management group led by chairman Martin Brody and president Max Pine through October 16 had received 1,796,727 Class A and 1,766,091 Class B shares in response to its tender offer for all shares at 18 dlrs each, giving thema majority of each class of shares. The company said the tender has been extended until November 6.  
TELEX CORP TO INVESTIGATE ALTERNATIVES TO TLX PARTNERS BID, MAY SEEK OTHER PURCHASERS.  TELEX CORP TO INVESTIGATE ALTERNATIVES TO TLX PARTNERS BID, MAY SEEK OTHER PURCHASERS  
SHAMROCK COMPLETES CENTRAL SOYA SALE TO FERRUZZI. Shamrock Capital LP said it has completed the sale of Cental Soya Co Inc to Ferruzzi Agricola Finanziaria the holding company for the Ferruzzi group of Ravenna, Italy. Shamrock Capital is a limited partnership led by Shamrock Holdings Inc, the Roy E. Disney family company. Under the agreement announced last month, Ferruzzi acquired all the equity and assumed subordinated term debt of about 195 mln dlrs in a transaction valued at about 370 mln dlrs.  
SHAMROCK COMPLETES CENTRAL SOYA SALE TO FERRUZZI. Shamrock Capital LP said it has completed the sale of Cental Soya Co Inc to Ferruzzi Agricola Finanziaria the holding company for the Ferruzzi group of Ravenna, Italy. Shamrock Capital is a limited partnership led by Shamrock Holdings Inc the Roy E. Disney family company. Under the agreement announced last month, Ferruzzi acquired all the equity and assumed subordinated term debt of about 195 mln dlrs in a trction valued at about 370 mln dlrs.  
CABLE AND WIRELESS RESTRUCTURES H.K. UNITS. Cable and Wireless Plc <CAWL.L> said its subsidiary <Hong Kong Telephone Co Ltd> would cease to be a listed company, following the restructure of the company's Hong Kong units. Earlier today the company announced that Hong Kong Telephone and Cable and Wireless Hong Kong, in which the territory's government has a 20 pct stake, would become subsidiaries of a newly formed holding company, Hong Kong Telecommunications. In exchange for the Cable and Wireless Hong Kong capital, Hong Kong Telecommunications will issue 4.18 billion new shares to Cable and Wireless Plc's Cable and Wireless (Far East) Ltd. That subsidiary now holds the group's 80 pct stake in Cable and Wireless Hong Kong and about 22 pct of H.K. Telephone. It will issue an additional 1.05 billion shares to the goverment. That will leave the Cable and Wireless group with an 80 pct stake in Hong Kong Telecommunications, the government 11 pct and nine pct in public hands. But that will be reduced early next year after a placement of 11 pct of the issued shares of Hong Kong Telecommunications by both Cable and Wireless and the government.  
GAF <GAF> GROUP RECONSIDERS BUYOUT BID. GAF Corp said the management group led by chairman Samuel J. Heyman intends to reconsider its proposal to acquire GAF. On September 8, the group offered 64.00 dlrs in cash and 2.50 dlrs principal amount of 15 pct junior subordinated debentures due 2007 for each GAF share.  Heyman owns about 2,700,000 of GAF's 33.5 mln shares outstanding. In a letter to the committee of independent directors formed to consider the offer, Heyman said it will have to modify the terms of the offer if it is to continue the bid, due to rising interest rates and financial market conditions. Heyman said "In the considerable time that has elapsed since our original proposal was submitted, the credit and financial markets have experienced extraordinary and almost unprecedented deterioration.  As of the present time, the average interest rate on the financing which we proposed to raise in connection with the acquisition has increased, since the original proposal, by approximately 150 basis points." He said the group intends to promptly review all available options, including the revision of its offer to reflect current market conditions.  
GAF CORP SAID MANAGEMENT GROUP TO RECONSIDER ACQUISITION PROPOSAL.  GAF CORP SAID MANAGEMENT GROUP TO RECONSIDER ACQUISITION PROPOSAL  
TRAFALGAR HOUSE BUYS U.S. BUILDER FOR 20 MLN DLRS. Trafalgar House Plc <TRAF.L> said it has acquired the entire share capital of <Capital Homes Inc> of the U.S. For 20 mln dlrs in cash. Capital Homes builds single family homes in the Washington D.C. Area and is also active as a land developer both for its own use and for sale to other builders. In the financial year to end February, 1987, Capital recorded pre-tax profits of 3.7 mln dlrs on a turnover of 58 mln dlrs from the sale of 421 homes. Capital has a land bank of some 2,600 units and in the current year the company expects to sell 500 homes, Trafalgar House said.  
EQUITICORP HOLDING IN GUINNESS REACHES 59.93 PCT. Equiticorp Holdings Ltd <EQUW.WE> now owns or has received acceptances representing 59.93 pct of the issued ordinary share capital of Guinness Peat Group Plc <GNSP.L>, Equiticorp said in a statement. Equiticorp's offer for Guinness Peat became unconditional on October 3, when it had 50.6 pct, and closed on October 17.  
CABLE AND WIRELESS DETAILS MERGER OF H.K. UNITS. Cable and Wireless Plc <CAWL.L> said it will merge its Hong Kong Telephone Co Ltd <TELH.HK> and <Cable and Wireless (Hong Kong) Ltd> units into a new holding firm to be called <Hong Kong Telecommunications Ltd>. Under the merger, H.K. Telephone shareholders will receive two H.K. Telecommunication shares at a par value of 50 H.K. Cents for each H.K. Telephone share at par of one dlr. H.K. Telephone shareholders other than the Cable and Wireless group will receive warrants on a one-for-five basis entitling them to acquire from Cable and Wireless Plc within five years one H.K. Telecom share at 10 dlrs each. The Cable and Wireless Plc group now holds some 70 pct of H.K. Telephone. It also owns 80 pct of Cable and Wireless (Hong Kong), while the Hong Kong government holds the balance. Trading in H.K. Telephone shares was suspended on October 15. The shares last traded at 19.30 dlrs.  
CABLE AND WIRELESS TO MERGE TWO H.K. UNITS INTO NEW TELECOMMUNICATION OPERATION.  CABLE AND WIRELESS TO MERGE TWO H.K. UNITS INTO NEW TELECOMMUNICATION OPERATION  
N.Z.'S CHASE CORP MAKES OFFER FOR ENTREGROWTH. Chase Corp Ltd <CHCA.WE> said it will make an offer for all fully-paid shares and options of <Entregrowth International Ltd> it does not already own. Chase, a property investment firm, said it holds 48 pct of Entregrowth, its vehicle for expansion in North America. It said agreements are being concluded to give it a beneficial 72.4 pct interest. The offer for the remaining shares is one Chase share for every three Entregrowth shares and one Chase option for every four Entregrowth options. Chase shares closed on Friday at 4.41 dlrs and the options at 2.38. Entregrowth closed at 1.35 dlrs and options at 55 cents. Chase said the offer for the remaining 27.6 pct of Entregrowth, worth 34.2 mln dlrs, involved the issue of 5.80 mln Chase shares and 3.10 mln Chase options. Chase chairman Colin Reynolds said the takeover would allow Entregrowth to concentrate on North American operations with access to Chase's international funding base and a stronger executive team. He said there also would be benefits from integrating New Zealand investment activities. Chase said the offer is conditional it receiving accptances for at least 90 pct of the shares and options.  
CHINA DAILY SAYS VERMIN EAT 7-12 PCT GRAIN STOCKS. A survey of 19 provinces and seven cities showed vermin consume between seven and 12 pct of China's grain stocks, the China Daily said. It also said that each year 1.575 mln tonnes, or 25 pct, of China's fruit output are left to rot, and 2.1 mln tonnes, or up to 30 pct, of its vegetables. The paper blamed the waste on inadequate storage and bad preservation methods. It said the government had launched a national programme to reduce waste, calling for improved technology in storage and preservation, and greater production of additives. The paper gave no further details.  
USDA SEEKS COMMENTS ON GRAIN DISCOUNT SCHEDULE. The U.S. Agriculture Department is seeking public comments on the question of adjusting the Commodity Credit Corporation's (CCC) discount and premium schedules to improve the quality of grain it accepts as loan collateral or under price support programs. The premiums and discounts schedule are based on quality factors such as moisture content and kernel damage. The schedule stipulates the premiums and discounts used for valuing grain the CCC accepts or purchases during the year. The department said it is possible that producers could be encouraged to delivery higher quality grain to CCC by adjusting the premiums and discounts. Comments are due by April 24 and a report to Congress is required by law by May 10.  
ARGENTINE GRAIN BELT WEATHER REPORT. ARGENTINE GRAIN BELT TEMPERATURES (CENTIGRADE) AND RAIN (MM) IN THE 24 HOURS TO 12.00 GMT WERE: ...............MAX TEMP..MIN TEMP..RAINFALL BUENOS AIRES.......24.......12............0 BAHIA BLANCA.......22........7............0 TRES ARROYOS.......22........8............0 TANDIL.............22........7............0 JUNIN..............24.......11............0 SANTA ROSA.........--........6............0 CORDOBA............23.......12............1 SANTA FE...........21.......18...........17 REUTER  
USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS  28.0 MLN TONNES VS 26.0 IN MARCH, 29.9 YEAR AGO.  USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS  28.0 MLN TONNES VS 26.0 IN MARCH, 29.9 YEAR AGO  
USDA ESTIMATES 1986 SOVIET GRAIN CROP  AT 210 MLN TONNES VS 210 IN MARCH, 192 YEAR-AGO.  USDA ESTIMATES 1986 SOVIET GRAIN CROP  AT 210 MLN TONNES VS 210 IN MARCH, 192 YEAR-AGO  
COARSE GRAIN SUPPLY/DEMAND BY COUNTRY -- USDA. The U.S. Agriculture Department detailed world supply/demand data for major importers and exporters of coarse grains, by country, as follows in mln tonnes -- USSR COARSE GRAIN 1986/87           1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks  N.A.    N.A.      N.A.    N.A. Production 103.30  103.30     99.99   99.99 Imports     12.00   10.00     13.70   13.70 Domes Use  112.30  112.30    111.99  111.99 Exports       NIL     NIL       NIL     NIL End Stocks   N.A.    N.A.      N.A.    N.A. N.A. - Not Available. EC-12 COARSE GRAIN, in mln tonnes -- 1986/87            1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks 14.91   14.93    10.53   10.53 Production  81.22   81.19    88.21   88.28 Imports     16.58   17.26    18.29   18.24 Dom Use     79.64   81.27    82.38   82.55 Exports     19.90   19.96    19.73   19.56 End Stocks  13.18   12.15    14.91   14.93 EASTERN EUROPE COARSE GRAIN, mln tonnes -- 1986/87            1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks  4.07    3.72     5.14    5.14 Production  73.95   74.50    68.28   68.38 Imports      4.90    4.47     5.58    5.26 Dom Use     73.04   73.23    72.65   72.77 Exports      3.55    3.55     2.28    2.28 End Stocks   6.34    5.46     4.07    3.72 JAPAN COARSE GRAIN, in mln tonnes -- 1986/87           1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks 2.32    2.23     1.91    1.91 Production  0.35    0.35     0.39    0.39 Imports    21.56   21.50    21.51   21.51 Dom Use    21.79   21.73    21.49   21.49 Exports      NIL     NIL      NIL     NIL End Stocks  2.44    2.44     2.32    2.32 ARGENTINA COARSE GRAIN, in mln tonnes -- 1986/87            1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks  0.78    0.53     0.83    0.83 Production  13.99   15.44    17.06   17.14 Imports      0.02     NIL      NIL     NIL Domes Use    7.73    7.75     7.76    7.87 Exports      6.60    7.73     9.43    9.58 End Stocks   0.46    0.49     0.78    0.53 CANADA COARSE GRAIN, in mln tonnes -- 1986/87            1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks 6.19    6.19     4.66    4.61 Production 27.62   27.62    24.95   24.95 Imports     0.30    0.30     0.31    0.31 Dom Use    19.80   19.80    18.99   18.96 Exports     7.41    7.21     4.74    4.72 End Stocks  6.90    7.10     6.19    6.19 THAILAND COARSE GRAINS, in mln tonnes -- 1986/87            1985/86 04/09/87 03/09/87  04/09/87 03/09/87 Start Stcks  0.49    0.38     0.16   0.16 Production   4.40    4.40     5.67   5.47 Imports       NIL     NIL      NIL    NIL Domes Use    1.57    1.37     1.40   1.30 Exports      3.10    3.30     3.94   3.95 End Stocks   0.22    0.11     0.49   0.38  
BULGARIA, ROMANIA GRAIN CROP SEEN LESS FAVORABLE. Current prospects for this year's grain crop in Bulgaria and Romania appear less favorable than in 1986, the U.S. Agriculture Department's officer in Belgrade said in a field report. The report said the assessment was based on travel in the two countries from March 30 to April 4. It said crop conditions were better than earlier expected following the extreme dry conditions last fall and the prolonged winter temperatures this spring. However, in general plant development was at least three weeks or more behind normal this spring, and conditions varied greatly by regions, the report said. Fields seeded during the optimum period last fall, and especially those receiving supplemental irrigation water (about 65 pct of the fields observed), appeared to be in good condition, with little evidence of winterkill, while others varied considerably, the report said. Fields lacking adequate moisture last fall showed weak and uneven stands. Spotty germination and winterkill in those fields averaged 10 to 30 pct, it said.  
U.S./SOVIET GRAIN MEETING UNLIKELY THIS SUMMER. Prospects appear slim for a summer meeting between U.S. and Soviet officials before the two countries enter the final year of their bilateral grains agreement, Agriculture Department officials said. The two sides usually try to meet as each new year of the agreeement approaches although the last meeting was delayed up to last February. However, any delay this year should not endanger the fifth year of the grains agreement that extends through September, 1988, USDA officials said. "It will be difficult to pull together the people for the meeting during July," an aide to USDA undersecretary Daniel Amstutz said. Since the last meeting was only around four months ago, the next talks could still be a "couple more months," he said.  There has been grain industry speculation that the USDA will offer Moscow another wheat subsidy during the next marketing year. But USDA officials said even if consultations were held soon a subsidy offer would probably not be made. "I doubt that there would be any subsidy offer this summer or before the next agreement year begins," a USDA source said. Citing limited subsidy funds and uncertainties about next year's crops, he said, "There are too many variables now. It would be uncharacteristic of us to make an offer now." Under the nonbinding pact, Moscow has agreed to purchase a minimum of nine mln tonnes of U.S. grain per year. Soviet and U.S. officials normally meet in the summer before the start of a new agreement year to discuss grain quality, shipping logistics and production outlooks.  
SOVIET 1988 GRAIN TARGET INDICATES 1987 OUTPUT. Recent announcements from Moscow of next year's grain production targets indicate that the Soviets are estimating this year's grain crop at 205 to 213 mln tonnes, Agriculture Department analysts said. USDA is projecting the Soviet crop at 210 mln tonnes, but some earlier estimates from Soviet officials were that the 1987 grain crop could match the 1978 record of 237 mln tonnes. Moscow outlined its economic targets for 1988 on Monday, putting the grain harvest goal at 235 mln tonnes. An analyst of Soviet agriculture at USDA noted that a recent article in Izvestia said Soviet grain production in 1988 is planned to be "25 to 30 mln tonnes more than expected this year." "This indicates that their own estimate is for a 205 to 213 mln tonne (grain) crop," the analyst said.  In calculating Moscow's crop estimate, USDA used the 235 mln tonne production goal, as well as a 238 mln tonne figure published in a Soviet economic journal this month. USDA's production estimate of 210 mln tonnes reflects a range of 207 to 212 mln tonnes, a USDA source said. Late season rains damaged Soviet crops, slowed harvest progress and lowered Soviet production, analysts said. While in the U.S. earlier this month, Soviet agriculture official Viktor Nikonov predicted that the grain crop would be as good or better than last year's 210 mln tonne harvest. A member of Nikonov's party commented that although 230 mln tonnes of grain were in the fields, harvest problems would bring the final crop down to around 210 mln tonnes.  
U.S. SENATE PANEL VOTES TO LIMIT COUNTY LOAN RATE  CHANGES STARTING WITH 1988 CROPS.  U.S. SENATE PANEL VOTES TO LIMIT COUNTY LOAN RATE  CHANGES STARTING WITH 1988 CROPS