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Lucene example source code file (reuters21578.txt)

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The Lucene reuters21578.txt source code

19870408	COUPON CUT ON KEIHANSHIN REAL ESTATE WARRANT BOND The coupon on the 25 mln dlr equity warrant eurobond for Keihanshin Real Estate Co Ltd has been set at 2-1/8 pct compared with the 2-1/4 pct indication, lead manager Daiwa Europe Ltd said.     The exercise price has been set at 810 yen per share which represents a premium of 2.53 pct over today's closing price of 790 yen. The exchange rate was set 146.30 yen to the dollar.     The five-year deal is priced at par and guaranteed by the Sumitomo Bank Ltd.  REUTER 3;
19870408	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.      Reuter 3;
19870408	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."  REUTER 3;
19870408	U.K. MONEY MARKET DEFICIT 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 main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 505 mln stg, while bills for repurchase by the market will remove around 194 mln. In addition, a rise in note circulation and bankers' balances below target will each drain around 110 mln stg.     Partly offsetting these outflows, exchequer transactions will add some 690 mln stg to the system today.  REUTER 3;
19870408	U.K. MONEY MARKET GIVEN 53 MLN STG ASSISTANCE The Bank of England said it provided the money market with 53 mln stg assistance in the morning session.     This compares with the bank's estimate of a shortage in the system of around 300 mln stg which it earlier revised up from 250 mln.     The central bank made outright purchases of bank bills comprising 46 mln stg in band three at 9-3/4 pct and seven mln stg in band four at 9-11/16 pct.  REUTER 3;
19870408	U.K. MONEY MARKET GIVEN FURTHER 166 MLN STG HELP The Bank of England said it provided the market with further help totalling 166 mln stg during the afternoon.     In band one, it bought 31 mln stg of treasury bills and three mln stg of bank bills at 9-7/8 pct, while in band two it bought 69 mln stg of bank bills at 9-13/16 pct. In addition, it bought 63 mln stg of band three bank bills at 9-3/4 pct.     This brings the total assistance by the Bank so far today to 219 mln stg against a liquidity shortage it has estimated at around 300 mln stg.  REUTER 3;
19870409	<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.  Reuter 3;
19870409	<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 .  Reuter 3;
19870409	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.  Reuter 3;
19870409	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  Reuter 3;
19870409	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.   REUTER 3;
19870409	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.  Reuter 3;
19870409	AMERICAN WOODMARK <AMWD> TO BUILD PLANT American Woodmark Corp said it plans to build a 100,000 square foot kitchen cabinet component plant in Toccoa, Ga., with completion expected in the spring of 1988.  Reuter 3;
19870409	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.  Reuter 3;
19870409	AMRO BANK PLANS 300 MLN GUILDER 6.75 PCT BONDS Amsterdam-Rotterdam Bank NV <AMRO.AS> said it plans to issue 300 mln 6.75 pct capital bonds due 1988/2007.     The bonds will be redeemable in 20 almost equal annual instalments starting June 1, 1988.     Early redemption is not permitted, the bank said.     The issue price will be announced no later than Wednesday, April 15. Subscriptions close on Thursday April 16 at 15.00 hrs local time. The coupon and payment date is June 1.     The bonds will be listed on the Amsterdam Stock Exchange.     A spokesman for the bank said the capital bonds were subordinated and had an average maturity of 10.5 years.     The bonds will be in denominations of 1,000 and 5,000 guilders.  REUTER 3;
19870409	ANALYSTS DOUBT FED FIRMED DESPITE BORROWING RISE Economists said that they doubt the Federal Reserve is firming policy to aid the dollar, despite higher discount window borrowings in the latest two-week statement period and very heavy borrowings Wednesday.     Data out today show net borrowings from the Fed averaged 393 mln dlrs in the two weeks to Wednesday, up from 265 mln dlrs in the prior statement period. Wednesday borrowings were 1.4 billion dlrs as Federal funds averaged a high 6.45 pct.     "One could make a case that the Fed is firming, but it probably isn't," said William Sullivan of Dean Witter Reynolds.     Sullivan said some may assume the Fed has firmed policy modestly to support the dollar because net borrowings in the two-weeks to Wednesday were nearly 400 mln dlrs after averaging around 250 mln dlrs over the previous two months.     However, the Dean Witter economist noted that the latest two-week period included a quarter end when seasonal demand often pushes up borrrowings.     "Some might argue that the Fed was firming policy, but it looks like it tried to play catchup with reserve provisions late in the statement period and didn't quite make it," said Ward McCarthy of Merrill Lynch Capital Markets.     A Fed spokesman told a press press conference today that the Fed had no large net one-day miss of two billion dlrs or more in its reserve projections in the week ended Wednesday.     Still, McCarthy said it may have had a cumulative miss in its estimates over the week that caused it to add fewer reserves earlier in the week than were actually needed.     The Fed took no market reserve management action last Thursday and Friday, the first two days of the week. It added temporary reserves indirectly on Monday via two billion dlrs of customer repurchase agreements and then supplied reserves directly via System repurchases on Tuesday and Wednesday.     Based on Fed data out today, economists calculated that the two-day System repurchase agreements the Fed arrranged on Tuesday totaled around 5.9 billion dlrs. They put Wednesday's overnight System repos at approximately 3.4 billion dlrs.     "It is quite clear that the Fed is not firming policy at this time," said Larry Leuzzi of S.G. Warburg and Co Inc.     Citing the view shared by the other two economists, Leuzzi said the Fed cannot really afford to seriously lift interest rates to help the dollar because that would harm already weak economies in the United States and abroad and add to the financial stress of developing countries and their lenders.     "Those who believe the Fed tightened policy in the latest statement period have to explain why it acted before the dollar tumbled," said McCarthy of Merrill Lynch.     He said the dollar staged a precipitous drop as a new statement period began today on disappointment yesterday's Washington meetings of international monetary officials failed to produce anything that would offer substantive dollar aid.     In fact, currency dealers said there was nothing in Wednesday's G-7 communique to alter the prevailing view that the yen needs to rise further to redress the huge trade imbalance between the United States and Japan.     The economists generally agreed that the Fed is aiming for steady policy now that should correspond to a weekly average Fed funds rate between six and 6-1/8 pct. This is about where the rate has been since early November.     "I'm not so sure that the Fed is engineering a tighter policy to help the dollar, as some suspect," said Sullivan of Dean Witter.     If it is, however, he said that Fed probably has just nudged up its funds rate goal to around 6.25 to 6.35 pct from six to 6.10 pct previously.  Reuter 3;
19870409	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.  Reuter 3;
19870409	ARGENTINE 1986/87 GRAIN OILSEED REGISTRATIONS Argentine grain board preliminary figures show 1986/87 crop export registrations of grains and oilseeds in the week to April 8, were as follows, in tonnes, compared with the previous week and the comparable week a year earlier.     BREAD WHEAT         nil        nil       nil     MAIZE              113,500    21,800    51,300     SORGHUM             13,600      nil     26,500     SOYBEAN             30,000    36,000    72,000     SUNFLOWERSEED        nil        nil     19,100     Cumulative figures export registrations for the 1986/87 crop to April 8, 1987, with comparative figures for the 1985/86 crop up to April 9, 1986, in brackets, were in thousands of tonnes.     BREAD WHEAT            2,692,4    (4,161.0)     MAIZE                  2,305.1    (5,200.0)     SORGHUM                  220.5      (625.7)     SOYBEAN                  561.3      (524.5)     SUNFLOWERSEED             45.7      (213.2)  REUTER 3;
19870409	ARGENTINE CATTLE MARKET REPORT ABOUT 3,314 HEAD OF CATTLE WERE AUCTIONED IN LINIERS CATTLE MARKET, AGAINST 13,952 ON WEDNESDAY AND 9,217 LAST THURSDAY, TRADE SOURCES SAID.     MAXIMUN PRICES, IN AUSTRALES PER KILO, WITH DOLLAR EQUIVALENT IN BRACKETS, INCLUDED:                                TODAY     WEDNESDAY     STEERS OVER 480 KILOS   1.02(0.658) 1.015(0.654)     STEERS 460 TO 480 KILOS 1.05(0.677) 1.032(0.665)     COWS FOR CANNING        0.56(0.361) 0.56 (0.361) REUTER 3;
19870409	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 3;
19870409	ARGENTINE GRAIN MARKET REVIEW The Argentine grain market was quiet in the week to Wednesday, with prices rising slightly on increased interest in wheat, millet and birdseed.     Wheat for domestic consumption rose six Australs per tonne to 118.     For export it rose eight to 108 per tonne from Bahia Blanca, increased 0.50 to 104 at Necochea and was unchanged at Rosario at 108.30.     Maize increased one to 90 per tonne at Buenos Aires, was unchanged at 82 in Bahia Blanca, increased 0.50 to 85 at Necochea and fell one to 88 at Parana River ports.     Sorghum from Bahia Blanca increased 0.50 Australs to 76.50 per tonne and dropped one to 75 at Rosario.     It was quoted at 75 at Villa Constitucion, San Nicolas and Puerto Alvear.     Oats were unchanged at 168 per tonne at Buenos Aires.     Millet from Buenos Aires and Rosario rose five per tonne to 140 and birdseed rose 15 to 205 at Buenos Aires.  REUTER 3;
19870409	ARUS <ARSCC> GETS 5.2 MLN DLR ORDER Arus Corp said it has received a letter of intent from Winston Financial Corp for the purchase of over 5,200,000 dlrs in telephone diagnostic testing equipment.     It said it expects to negotiate a firm order in May.     The company said the total value of the order is at least 5,200,000 dlrs and could be more, depending on circuit configurations required.  Reuter 3;
19870409	ASARCO UPS U.S. LEAD PRICE 0.50 CT TO 26.50 CTS Asarco Inc said it is increasing its base spot sales price for refined lead by one-half cent to 26.50 cents a lb, FOB, delivered in carload lots, effective immediately.  Reuter 3;
19870409	ASSETS OF U.S. MONEY FUNDS ROSE IN WEEK Assets of money market mutual funds increased 1.39 billion dlrs in the week ended yesterday to 236.77 billion dlrs, the Investment Company Institute said.     Assets of 93 institutional funds were up 481.1 mln dlrs to 65.65 billion dlrs, 93 broker-dealer funds rose 285.3 mln dlrs to 107.31 billion dlrs, and 197 general purpose funds gained 625.5 mln dlrs to 63.8 billion dlrs.  Reuter 3;
19870409	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.  REUTER 3;
19870409	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)  REUTER 3;
19870409	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.  REUTER 3;
19870409	BANK OF FRANCE TO HOLD MONEY MARKET TENDER TODAY The Bank of France said it has invited offers of first category paper today for a money market intervention tender.     Money market operators were divided over whether the Bank of France will use to occasion to cut its intervention rate, which has stood at 7-3/4 pct since March 9.     Some thought a price cut unlikely while others said there was room for a further 1/4 point cut by the bank.  REUTER 3;
19870409	BANK OF JAPAN BUYS DOLLARS IN TOKYO, DEALERS SAY The Bank of Japan bought a modest amount of dollars at around 145.10 yen just after the market here opened, dealers said.     Just before the opening, the dollar dropped swiftly as speculators concluded the Group of Seven (G-7) comminuique issued in Washington contained nothing basically new, they said. It fell about a half yen, to around 145.     The G-7 reaffirmed that their currencies around current levels reflect economic fundamentals.     One dealer said the Bank of Japan probably intervened in Australia before the opening here, but could not confirm this.  REUTER 3;
19870409	BANKERS TRUST <BT> FILES 400 MLN DLR OFFERING Bankers Trust New York Corp filed with the Securities and Exchange Commission for a shelf offering of up to 400 mln dlrs of subordinated debentures on terms to be set at the time of sale.     The bank holding company said proceeds will be used for general corporate purposes including investments in or extensions of credit to its subsidiaries.     Underwriters were not named in the draft prospectus.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	BELGIAN CURRENT ACCOUNT SURPLUS WIDENS IN 1986 Belgium's current account surplus, measured on a cash basis, widened sharply to 134.9 billion francs last year from 17.5 billion in 1985, the Finance Ministry said.     The increase was due almost entirely to a sharp rise in the goods trade surplus to 126.1 billion francs from 20.4 billion.     The services trade surpluses increased to 52.4 billion francs from 38.9 billion while the deficit on transfers rose slightly to 43.6 billion from 41.8 billion.     Private sector capital operations showed a steeply higher deficit of 160.7 billion francs after 56.9 billion in 1985.  Reuter 3;
19870409	BELGIUM LAUNCHES BONDS WITH GOLD WARRANTS The Kingdom of Belgium is launching 100 mln Swiss francs of seven year notes with warrants attached to buy gold, lead manager Credit Suisse said.     The notes themselves have a 3-3/8 pct coupon and are priced at par. Payment is due April 30, 1987, and final maturity April 30, 1994.     Each 50,000 franc note carries 15 warrants. Two warrants are required to allow the holder to buy 100 grammes of gold at a price of 2,450 francs, during the entire life of the bond.     The latest gold price in Zurich was 2,045/2,070 francs per 100 grammes.  Reuter 3;
19870409	BELGIUM LAUNCHES BONDS WITH GOLD WARRANTS The Kingdom of Belgium is launching 100 mln Swiss francs of seven year notes with warrants attached to buy gold, lead mananger Credit Suisse said.     The notes themselves have a 3-3/8 pct coupon and are priced at par. Payment is due April 30, 1987 and final maturity April 30, 1994.     Each 50,000 franc note carries 15 warrants. Two warrants are required to allow the holder to buy 100 grammes of gold at a price of 2,450 francs, during the entire life of the bond.     The latest gold price in Zurich was 2,045/2,070 francs per 100 grammes.  REUTER 3;
19870409	BELGIUM TO ISSUE GOLD WARRANTS, SOURCES SAY Belgium plans to issue Swiss franc warrants to buy gold, with Credit Suisse as lead manager, market sources said.     No confirmation or further details were immediately available.  REUTER 3;
19870409	BERLINER BANK ISSUES 50 MLN AUSTRALIAN DLR BOND Berliner Bank AG Berlin is issuing a 50 mln Australian dlr eurobond due November 13, 1990 paying 14-1/4 pct and priced at 101-1/2 pct, lead manager Banque Paribas Capital Markets said.     The non-callable bond is available in denominations of 1,000 Australian dlrs and will be listed in Luxembourg. The selling concession is one pct while management and underwriting combined pays 5/8 pct.     The payment date is May 13 and there will be a long first coupon period.  REUTER 3;
19870409	BERMUDA SEEKS 40 MLN DLR REVOLVING CREDIT The Government of Bermuda is seeking a 40 mln dlr, seven year revolving credit, which will be the only credit outstanding in its own name, N.M. Rothschild and Sons Ltd said as arranger and agent.     The credit will pay a margin of 20 basis points over U.S. Dollar London Interbank Offered Rates (LIBOR) and will incorporate a tender panel for U.S. Dlr advances.     There is a 10 basis point annual facility fee in years one to four, rising to 12-1/2 points thereafter.  A 7-1/2 basis point participation fee is payable on the transaction, which started syndication this week.  Reuter 3;
19870409	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.  Reuter 3;
19870409	BFIM-SOVAC OFFERS BOND REDEMPTION Banque de Financement Immobilier SOVAC, BFIM-SOVAC, launched an offer to repurchase its 14.30 pct 1980 bond issue at a price of 2,180 francs per bond, a Paris Bourse statement said.     The repurchase offer, managed by Lazard Freres et Cie, opens April 10 and closes April 27. The 140 mln franc issue comprised 70,000 bonds of 2,000 franc nominal value each.  Reuter 3;
19870409	BOND INTERNATIONAL SELLS H.K. RESIDENTIAL BUILDING <Bond Corp International Ltd> said it has sold a residential block at Hong Kong's mid-levels to a joint venture between Sun Hung Kai Properties Ltd  and  for 138 mln H.K. Dlrs.     Bond International, a subsidiary of the Australia based Bond Corp Holdings Ltd , will receive net profits of about 16 mln dlrs from the deal.     The firm bought the building, which has total floor spaces of 110,580 sq ft and is now fully let, as part of a parcel of properties which it acquired from Hongkong Land Co Ltd  for 1.43 billion dlrs late last year.  REUTER 3;
19870409	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.  REUTER 3;
19870409	BRAZIL COCOA EXPORTERS UNLIKELY TO LIMIT SALES Brazilian cocoa exporters are not likely to follow the example of Cocoa Producers Alliance, CPA, members, who may limit sales of the product in an effort to boost world prices, trade sources said.     They said a similar procedure was taken in the past in Brazil and that it did not work out according to plans.     "The cocoa market is completely free. Unlike coffee, which is controlled through export registrations, cocoa exporters in Brazil operate at their own free will," a trade source said.     The traders were responding to questions whether they would follow the example of CPA members meeting in Yaounde.     The sources said the Banco do Brasil's Foreign Trade Department, CACEX, never interferes in the cocoa market by rejecting sales that do not meet certain price or shipment criteria.     "The position of local producers is always to negotiate as they please. If they buy for ten and sell for eleven and think it's a good deal, they are free to go ahead," one source added.  Reuter 3;
19870409	BRAZIL COTTON CROP LOWER -- USDA REPORT Brazil's 1986/87 cotton crop estimate has been reduced to 710,000 from 735,000 tonnes (lint basis), the U.S. Agriculture Department's officer in Sao Paulo said in a field report.     The report, dated April 7, said the reduction is based on an expected smaller harvest in the center-south region.     The center-south crop is now estimated at 550,000 tonnes -- 25,000 tonnes below the previous estimate.     Hot, dry weather during part of January and excessive rains in some areas in February reduced yield prospects and may have affected quality, the report said.     Nearly 60 pct of the crop has been harvested in Parana and slightly less in Sao Paulo, it said. Cotton entering gins is of fairly good quality, according to trade sources, it said.  Reuter 3;
19870409	BRAZIL SOYBEAN YIELDS SEEN AVERAGE - USDA REPORT Based on field travel in the Brazilian state of Parana, soybean yields should be about average or 2.0 to 2.2 tonnes per hectare, the U.S. Agriculture Department's officer in Sao Paulo said in a field report.     The report, dated March 24, noted Parana accounts for about 20 to 24 pct of Brazil's total soybean crop.     It said generally favorable weather from early December through February helped compensate for earlier dryness.     However, hot, dry weather during the past 20 to 30 days followed by an unseasonably brief cold spell during the second week of march has raised concern about late planted soybeans which are still immature, but the impact may be localized, the report said.     The corn crop is expected to be a record and will create serious storage problems, the report said.     Due to favorable support prices, corn area increased by more than 25 pct at the expense of soybeans, and yields are expected to be above average, it said.     Due to late plantings only about 20 pct of the corn crop crop has been harvested.     During the field trip long truck lines were noted at grain elevators where preference is given to soybeans over corn, the report said.     New crop wheat plantings are expected to decline  -- Parana accounts for about 60 pct of total production. Major reasons for the decline are expected reduced government support price and good summer crop harvests.  Reuter 3;
19870409	BRAZILIAN SOY RAINFALL THE FOLLOWING RAINFALL WAS RECORDED IN THE 24 HOURS UP TO (1200) GMT TODAY     PARANA STATE: CASCAVEL NIL, PONTA GROSSA NIL,CAMPO MOURAO NIL, LONDRINA NIL, MARINGA NIL.     RIO GRANDO DO SUL STATE: PASSO FUNDO NIL, SANTA MARIA 7.0 MILLIMETRES, CRUZ ALTA 8.5 MM, SAO LUIZ GONZAGA 4.4 MM. REUTER 3;
19870409	BRENDA MINES SELLING KERR ADDISON SHARES <Brenda Mines Ltd> said it sold 2,830,390  shares to a group of underwriters led by Wood Gundy Inc and Brown, Baldwin Nisker Ltd for redistribution.     Financial terms were undisclosed.  Reuter 3;
19870409	BRITISH AIRWAYS ISSUES 100 MLN STG EUROBOND British Airways Plc <BAB.L> is issuing a 100 mln stg eurobond due May 6, 1997, paying 9-1/2 pct and priced at 101-1/2, lead manager Union Bank of Switzerland said.     The non-callable bond is available in denominations of 1,000 and 10,000 stg and will be listed in London. The selling concession is 1-1/4 pct while management and underwriting combined pays 3/4 pct.     Payment date is May 6.  REUTER 3;
19870409	BUNDESBANK SEES NO CHANGE IN MONETARY COURSE The Bundesbank sees no current reason to change monetary course, vice-president Helmut Schlesinger told Reuters in a telephone interview.     Schlesinger was responding to questions following remarks yesterday by Bundesbank board member Claus Koehler and West Berlin state central bank president Dieter Hiss, which, dealers said, revived some speculation that German interest rate cuts may once again be under discussion.     Schlesinger said he had no comment on the remarks of his two central bank council colleagues.     But he added that the last central bank council meeting on April 2 had discussed the economic situation with a mood of "subdued optimism," particularly influenced by the news brought by several state central bank presidents.     "Much is going better than the impression gained by the public from the January figures, which have been in the meantime superseded," he said.     German January industrial output fell 3.0 pct after a decline of 0.9 pct in December. New industry orders fell 1.9 pct after they had been unchanged in December.     Bank economists said that the two together showed the economy would either stagnate or contract in the first quarter of 1987.     Aside from the economic developments, Schlesinger added, a steady monetary course was important to hold the dollar/mark rate around current levels as Bundesbank president Karl Otto Poehl had said while attending the Washington World Bank/IMF meeting.     Asked, however, if the Bundesbank could move to cut rates on repurchase agreements at the setting of the next repurchase tender, due next Tuesday, Schlesinger said, "Since the central bank council gives its opinion on this theme only every 14 days, this is hardly probable."     Responding to the question whether the Bundesbank had moved away from a policy of targetting monetary growth toward one of targetting currency rates, Schlesinger said he could have no comment on the subject while negotiations were still in progress in Washington.  REUTER 3;
19870409	BURLINGTON INDUSTRIES <BUR> SELLS CONVERTIBLES Burlington Industries Inc is raising 75 mln dlrs through an offering of convertible subordinated debentures due 2012 with a 6-1/4 pct coupon and par pricing, said lead manager Kidder, Peabody and Co Inc.     The debentures are convertible into the company's common stock at 63.50 dlrs per share, representing a premium of 18.1 pct over the stock price when terms on the debt were set.     Non-callable for three years, the issue is rated Ba-2 by Moody's Investors Service Inc and BBB by Standard and Poor's Corp. Merrill Lynch Capital Markets and Salomon Brothers Inc co-managed the deal.  Reuter 3;
19870409	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 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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."  Reuter 3;
19870409	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.            Reuter 3;
19870409	CANAM MANAC WINS 8.5 MLN DLR CONTRACT (The Canam Manac Group Inc) said its Canam Steel Works unit received a contract valued at 8.5 mln dlrs to supply steel trusses to (Canron Inc) for a new car plant in Ingersoll, Ontario.     Canam Manac said it will produce the trusses at its Quebec and Ontario plants and delivery will be completed by August.  Reuter 3;
19870409	CANNON INT'L <CAN> SETS PHILIPPINES FILM PACT Cannon International said  agreed to exclusively distribute Cannon films in the Philippines for the new four years.     The company said the agreement covers both theatrical and video distribution. Terms were not disclosed.   Reuter 3;
19870409	CARGILL CONFIRMS WHITE SUGAR SALE TO INDIA London-based trader Cargill (U.K.) Ltd confirmed it sold one cargo of white sugar to India for shipment April 15/May 15 at yesterday's tender.     Price details were not immediately available but some traders suggested business had been done around 220 dlrs a tonne cif.     India tendered for one or two cargoes of white sugar. There was no specific requirement on shipping period.  REUTER 3;
19870409	CCC GUARANTEES TO IRAQ SWITCHED --USDA The Commodity Credit Corporation (CCC) has transferred 12.0 mln dlrs in credit guarantees previously earmarked for sales of U.S. hatching eggs and 7.0 mln dlrs in guarantees for breeder livestock to increase coverage on sales of U.S. protein concentrates to Iraq, the U.S. Agriculture Department said.     The action was taken at the request of Iraq's State Trade Organization for Grains and Foodstuffs and reduces the line for hatching eggs to zero and the line for breeder livestock from 15.0 mln dlrs to 8.0 mln dlrs, the department said.     The guarantee line for sales of protein concentrates has been increased from 25.0 mln dlrs to 44.0 mln dlrs, it said.      Reuter 3;
19870409	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 , 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 , and Cie Financiere de Paribas . The sale of  and  should be completed this month, while third largest French bank Societe Generale  will be privatised later this year.  REUTER 3;
19870409	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.  Reuter 3;
19870409	CENTEL <CNT> SELLS DEBENTURES AT 9.233 PCT Centel Corp is raising 50 mln dlrs through an offering of debentures due 2017 yielding 9.233 pct, said lead manager Smith Barney, Harris Upham and Co Inc.     The debentures have a 9-1/8 pct coupon and were priced at 98.90 to yield 117 basis points over comparable Treasury securities.     Non-callable for five years, the issue is rated A-3 by Moody's Investors Service Inc and A by Standard and Poor's Corp.     E.F. Hutton and Co Inc and UBS Securities Inc co-managed the deal.  Reuter 3;
19870409	CERTIFICATED COTTON STOCKS Certificated cotton stocks deliverable on the New York Cotton Exchange No 2 cotton futures contract as of April 8 were reported at 34,661 bales, down 421 bales from the previous day's figure. There were no bales awaiting review and 1,218 bales awaiting decertification.  Reuter 3;
19870409	CHICAGO PACIFIC <CPAC> SELLS CONVERTIBLE DEBT Chicago Pacific Corp is raising 150 mln dlrs through an offering of convertible subordinated debentures due 2012 with a 6-1/2 pct coupon and par pricing, said lead manager Goldman, Sachs and Co.     The debentures are convertible into the company's common stock at 62.50 dlrs per share, representing a premium of 25.63 pct over the stock price when terms on the debt were set.     Non-callable for two years, the issue is rated B-1 by Moody's Investors Service Inc and B by Standard and Poor's Corp. First Boston Corp and Lazard Freres and Co co-managed the deal.  Reuter 3;
19870409	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.  Reuter 3;
19870409	CHINA LIGHT UNIT RENEWS COMMERCIAL PAPER FACILITY <Kowloon Electricity Supply Co Ltd>, a joint venture of China Light and Power Co Ltd  and Exxon Corp , has renewed and increased an existing commercial paper program, arranger  said.     The fully underwritten program, which expires this month, has been extended to December 1990 and increased to 540 mln H.K. Dlrs from the original 500 mln dlrs, it said.     The underwriting fee is 1/8 of a percentage point over the Hong Kong interbank offered rate.     Commercial paper in tenures of one to three months will be issued in denominations of one mln dlrs, it said.     The program offers a U.S. Dlr option whereby commercial paper in denominations of 100,000 U.S. Dlrs will be issued subject to the same underwriting margin.     Joining Schroders as underwriters are Barclays Bank Plc, Citicorp International Ltd, Paribas Asia Ltd, Sanwa International Finance Ltd and Sumitomo Finance (Asia) Ltd.     The six underwriters will be joined by 11 other financial institutions in the tender panel.  REUTER 3;
19870409	CHINA'S WHEAT CROP THREATENED BY PESTS, DISEASE Pests and disease, which destroyed 1.1 mln tonnes of wheat in China in 1986, are threatening crops on 11.64 mln hectares this year, the China Daily said.     About 14.54 mln hectares of wheat were affected in 1986.     The paper said abnormal weather conditions had encouraged the spread of wheat midges in 2.47 mln hectares in Shanxi, Henan, Sichuan, Anhui, Hebei and Jiangsu.     In Henan, Shandong and Hebei wheat aphids are affecting 4.67 mln hectares, wheat red mite 2.8 mln hectares and wheat powdery mildew 1.7 mln hectares.  REUTER 3;
19870409	CHINESE BANK TO MAKE FIRST FOREIGN BORROWING The state-owned People's Construction Bank of China is making its first foreign borrowing, 300 mln dlrs to finance a large ethylene plant in Shanghai, the People's Daily said.     The newspaper's overseas edition said the plant will produce 300,000 tonnes of ethylene a year.     It said the bank last year started foreign exchange services for the first time on an experimental basis in Shenzhen, Zhuhai and Xiamen, but it gave no more details.  REUTER 3;
19870409	CIBC UNIT ISSUES AUSTRALIAN DLR ZERO COUPON BOND CIBC Australia Ltd is issuing a zero coupon eurobond with a total redemption amount of 125 mln Australian dlrs due May 15, 1992 priced at 54 pct, sole lead manager CIBC Ltd said.     The issue is available in denominations of 1,000 and 10,000 Australian dlrs and is guaranteed Canadian Imperial Bank of Commerce. The selling concession is 3/4 pct, while management and underwriting combined pays 5/8 pct.     The payment date is May 15.  REUTER 3;
19870409	CLEVITE <CLEV> AMENDS RIGHTS PLAN Clevite Industries Inc, which earlier received a 96 mln dlr takeover offer from J.P. Industries Inc , 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.  Reuter 3;
19870409	CLEVITE <CLEV> GETS 13.50 DLR/SHR OFFER Clevite Industries Inc said it received a written proposal from J.P. Industries Inc  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.   Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	COMDATA <CDN> GETS MERGER FINANCING Comdata Network Inc said it has received a letter from Drexel Burnham Lambert Inc stating that, subject to conditions, the company could raise up to 235 mln dlrs in debt securities to finance the previously announced merger of a newly formed corporation controlled by  and Comdata.     Comdata said the letter was in accordance with the previously announced terms with Welsh, Carson.  Reuter 3;
19870409	COMINCO <CLT> TO FORM EXPLORATION UNIT Cominco Ltd said it is forming a new publicly held company, Cominco Resources International Ltd, to continue exploration and development of its mineral holdings outside Canada, Alaska and Australia.     Cominco will maintain a majority position in the company, but the remaining interest will be sold in offerings led by Wood Gundy Inc and First Marathon Securities Ltd in Canada, and S.G. Warburg Securities and Wood Gundy Inc internationally.     Cominco said it is filing a preliminary prospectus with securities regulators in all Canadian provinces.                             Reuter 3;
19870409	COMMONWEALTH EDISON <CWE> FILES DEBT OFFER Commonwealth Edison Co filed with the Securities and Exchange Commission for the sale of 375 mln dlrs in first mortgage bonds.     It said the proceedings would be used to discharge or refund outstanding obligations.     No underwriter was named.  Reuter 3;
19870409	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.  Reuter 3;
19870409	CONSENSUS SEEN ON TIN PACT EXTENSION The quarterly session of the International Tin Council (ITC) continued without formal agreement on an extension of the sixth International Tin Agreement (ITA), but delegates said it was apparent there was a general consensus the Agreement should be prolonged.     Some delegations are still awaiting formal instructions from capitals, but informally most have indicated they favour an extension, delegates said.     This afternoon's session was used by delegates to seek further clarification on some of the issues involved, and to discuss internal matters.     Some sources were optimistic a resolution on an extension could be passed tomorrow but others suggested a special session would be convened to adopt the resolution after the Association of Tin Producing Countries meeting April 14 to 16.     The full Council session resumes tomorrow at 1330 GMT after a European Community coordination meeting at 1100.  Reuter 3;
19870409	CONSUMERS POWER <CMS> TO REDEEM BONDS Consumers Power Co said it has 56 mln dlrs available to be used to redeem at par any 15 pct series first mortgage bonds that are not exchanged under an outstanding bond exchange program.     The utility on March 17 offered to exchange its 15 pct first mortgage bonds due March 1, 1994 for a new series of first mortgage bonds, 9-1/4 pct due April 1, 1997. The offer will expire April 14, 1987.  Reuter 3;
19870409	CONTI SHARES OPEN HIGHER ON GOOD NEW TYRE REVIEWS Shares of Continental Gummi-Werke AG <CONG.F> opened eight marks stronger in an otherwise mixed Frankfurt market and dealers attributed the trend to favourable press reports about a new tyre system the company is developing.     The shares later eased to 344.50.     A spokesman for the West German Automobile Association, ADAC, said the ADAC magazine in a recent edition described advantages of the new tyre.  REUTER 3;
19870409	COUPON CUT ON BANK OF TOKYO DOLLAR CONVERTIBLE The coupon on the 100 mln dlr, 15-year, convertible eurobond for the Bank of Tokyo Ltd has been cut to 1-3/4 pct from the two pct initially indicated, lead manager Bank of Tokyo International Ltd said.     The foreign exchange rate has been set at 146.40 yen to the dollar but details of the conversion price were not immediately available.  REUTER 3;
19870409	COUPON CUT ON BANK OF TOKYO SWISS FRANC ISSUE The coupon on the Bank of Tokyo Ltd's 100 mln Swiss franc convertible has been cut to 7/8 pct from the indicated 1-1/4 pct, lead manager Swiss Bank Corp said.     The conversion price has been set at 1,590 yen, the same as today's close.     The exchange rate has been set at 96.84 yen to the franc.     Payment is due April 30. The conversion period is from May 20, 1987 until September 20, 1992.  REUTER 3;
19870409	CRAY <CYR> GETS 6.6 MLN DLRS ORDER FROM BP  Cray Research Inc said British Petroleum ordered a CRAY X-MP/24 supercomputer valued at about 6.6 mln dlrs.     The leased system will be installed at BP Exploration Co Ltd's London headquarters in the fourth quarter of 1987, pending export license approval, it said.     The CRAY X-MP/24 will replace a CRAY X-MP/12 supercomputer in operation since 1985, it added.     Separately, the company said that a CRAY X-MP/24 system valued at 8.5 mln dlrs was installed at Lockheed Missiles and Space Co.  Reuter 3;
19870409	CREDIT NATIONAL ISSUES BILLION FRANC CONVERTIBLE Credit National is issuing a one billion franc convertible bond issue in two tranches both paying 8.50 pct and in 5,000 franc units, lead managers Caisse Nationale de Credit Agricole, Union de Garantie et de Placement and Morgan et Cie said.     Both tranches will be redeemable at the end of their lives and both have a payment date of April 27.     One seven year tranche will be priced at 99.94 pct. Each bond will be convertible on a one-for-one basis for a 8-1/2 year, 8.50 pct bond priced at 98.76 pct, redeemable at the end of its life.     This bond will pay a first coupon of 4.25 pct on April 27 next year and the payment date will be October 27, 1987.     A 13-year tranche, priced at 97.74 pct, will also be convertible until October 10, 1987 on a one for one basis for a 8.50 pct, 10-1/2 year year bond priced at 98.08 pct.     This bond will pay a first coupon of 212.50 francs on October 27 next year and the payment date will be October 27 this year.  REUTER 3;
19870409	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.  Reuter 3;
19870409	DAYTON HUDSON <DH> MARCH SALES OFF 4.9 PCT Dayton Hudson Corp said retail sales for the five weeks ended April Four were 791.8 mln dlrs compared to 755.6 mln dlrs a year ago. On a comparable store basis, it said sales declined 4.9 pct.     Sales for the nine months were 1.39 billion dlrs, up from 1.26 billion dlrs in the same 1986 period. On a comparable store basis, the sales rose 1.2 pct.  Reuter 3;
19870409	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  Reuter 3;
19870409	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.  Reuter 3;
19870409	DISEASE PUTS ZIMBABWE BEEF EXPORTS IN JEOPARDY Zimbabwe's beef exports to the European Community (EC), potentially worth 70 mln Zimbabwean dlrs this year, may be jeopardised by an outbreak of foot and mouth disease in southwestern Matabeleland, industry sources said.     The country has temporarily suspended beef exports to the EC because of the outbreak and awaits a decision from the EC veterinary committee, which is considering a formal ban.     The outbreak in the country's main ranching province has already led neighbouring beef-producing Botswana and Zambia to bar beef and dairy imports from Zimbabwe, threatening the dairy industry with a loss of at least one mln dlrs in export revenue.     "The situation is still uncertain at the moment. Normally when an outbreak occurs there is an automatic suspension of beef exports," one industry source said yesterday.      Commenting on EC policy, he explained, "Depending on the seriousness of the outbreak the (veterinary) committee then decides on three options, allowing us to continue exporting beef from disease-free areas, clamping a three-month suspension on exports or banning us from exporting for a year. We are still awaiting their decision," he added, asking not to be identified.     Zimbabwe was granted an export quota of 8,100 tonnes of high-grade beef to EC markets in 1985 after the country had spent millions of dollars erecting disease-control fences and upgrading abattoirs to meet stringent EC rules.     Should the EC ban Zimbabwean exports, the country will be forced to sell its beef on glutted world beef markets at low prices, the source said. Projected earnings from beef sales could fall about 23 mln dlrs as a result, he said.  Reuter 3;
19870409	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 3;
19870409	DOE RUN RAISES LEAD PRICE 0.50 CT TO 26.50 CTS Doe Run Company said it is increasing the price of its corroding grade lead by one-half cent to 26.50 cents a lb, effective immediately.     The price is quoted FOB, Herculaneum, Mo., and FOB, Boss, Mo., with freight allowed for carload quantities.      Reuter 3;
19870409	DOLLAR ENDS LOWER IN LACKLUSTRE FRANKFURT The dollar drifted down to end one pfennig lower after a lacklustre session, held in limits by the lack of concrete news from the Group of Seven meeting and comments on the edge of the Washington IMF/World Bank meeting.     Dealers said the communique early in the European morning from the G-7 meeting contained no significant new factors and although the dollar dipped it generally resisted further attempts to push it lower through the day.     The U.S. Currency ended at 1.8270/80 marks, below yesterday's last 1.8365/75.     Koch said the assessment of the dollar's direction was based on a global view, with operators paying most attention to comments by finance officials to see how closely they stated adherence to international agreements such as those set at the Plaza Hotel in 1985 and in Paris on February 22.     Koch described the wording of the communique from the G-7 as "soft as wax."     Bundebank vice-president Helmut Schlesinger told Reuters in a telephone interview that the German central bank sees no current reason to change monetary course at present.     Schlesinger was responding to questions following remarks yesterday by Bundesbank board member Claus Koehler and West Berlin state central bank president Dieter Hiss, which dealers said revived some speculation that German interest rate cuts may be under consideration.     German call money was slightly softer today, at around 3.70 pct after 3.80 yesterday.     Some dealers said rates on new liquidity injections added via Bundesbank securities repurchase agreements may be cut next week. Hopes of a cut were dashed on Tuesday with an allocation at an unchanged 3.80 pct.     But speaking of the pact tender rate next week, Schlesinger said, "since the central bank council gives its opinion on this theme only every 14 days, this is hardly probable."     Euromark rates scarcely responded to the central bankers comments, with six months funds ending unaltered at around 3-7/8 pct. Eurodollars for the same maturity rose a fractional 1/16 pct from yesterday to around 6-11/16 pct.     Sterling dipped to end at 2.952/956 marks after 2.960/965 last night. The Swiss franc firmed slightly to 120.30/45 marks per 100 from 120.25/40, with the yen soaring however to 1.2570/90 marks per 100 from 1.2515/35 yesterday.     EMS currencies saw the French franc end unchanged from last night at 30.03/06 marks per 100, with the Belgian franc easing however to 4.829/831 marks per 100 from 4.831/833.  REUTER 3;
19870409	DOLLAR FALLS BELOW 143 YEN IN TOKYO The dollar fell below 143 yen in hectic early Tokyo trading despite aggressive Bank of Japan intervention, dealers said.     After opening at a Tokyo low of 143.75 yen, the dollar fell as low as 142.90 yen on heavy selling led by securities firms and institutional investors, they said.  REUTER 3;
19870409	DOLLAR OPENS AT TOKYO RECORD LOW OF 143.75 YEN The dollar opened at a record Tokyo low of 143.75 yen despite aggressive Bank of Japan intervention, dealers said.     The previous record low was 144.70 yen set on March 30. The opening compares with 143.90/144.00 yen at the close in New York.     The central bank bought dollars through Tokyo brokers just before and after the market opening, the dealers said.     The intervention took place when the dollar fell to 143.20 yen, one dealer said.     The dollar opened at 1.8155/60 marks against 1.8187/97 in New York.     The dollar fell as low as 142.90 yen despite central bank intervention at 143.00 yen, dealers said.     Selling pressure was strong from securities houses and institutional investors in hectic and nervous trading on underlying bearish sentiment for the dollar, they said.     Most dealers were surpised by the dollar's sharp fall against the yen in New York, although many had expected such a drop to happen eventually.     Institutional investors are expected to sell the dollar aggressively if it rises to around 143.50 yen, dealers said.     The U.S. Currency steadied well above 143.00 yen after Bank of Japan intervention and scattered short-covering, they said.     The dollar opened at 1.5120/30 Swiss francs against 1.5085/00 at the New York close.     Sterling started at 1.6190/00 dlrs against 1.6195/05.  REUTER 3;
19870409	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  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.  Reuter 3;
19870409	EC COMMISSION AUTHORISED TO BUY MAIZE IN JUNE The European Commission was authorised to buy up to one mln tonnes of maize into intervention stores in the second half of June, although sales into intervention normally end on April 30, Commission sources said.     They said approval was given by the EC's Cereals Management Committee because of the possible disturbance of the market due to heavy imports of maize under the agreement between the EC and the United States.     The agreement guarantees access to the Spanish market for two mln tonnes of non-EC maize a year for the next four years.     The sources said the intervention price for the maize would be 201.49 Ecus a tonne.     They said at this price it seemed unlikely that the full     They added the decision is also designed to prevent massive offers of maize for intervention just ahead of the normal April 30 deadline, which could be caused by speculation about the implementation of the accord with the United States.  Reuter 3;
19870409	EC GRANTS FREE MARKET BARLEY, MAIZE EXPORTS The European Commission authorised the export of 65,000 tonnes of free market barley at today's tender at a maximum rebate of 138.75 European currency units and 55,000 tonnes of French maize at 130 Ecus, grain traders here said.     It rejected bids for breadmaking and feed wheat, they said.  Reuter 3;
19870409	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.  REUTER 3;
19870409	EC SUGAR TENDER SEEN MARKING NO CHANGE IN POLICY The maximum export rebate granted at yesterday's EC sugar tender marked no change in policy over producer complaints that they are not obtaining the EC intervention price in exporting sugar outside the Community, EC Commission sources said.     The maximum rebate was 46.496 Ecus per 100 kilos for 118,350 tonnes of sugar, down from 46.864 Ecus the previous week, but the change is explained by world market conditions.     Producers claim the rebate was short of the level needed to obtain a price equivalent to the intervention price by over one Ecu per 100 kilos, and was 0.87 Ecu short the previous week, the sources said.     They said this was despite the fact that the Commission had to accept 785,000 tonnes of sugar into intervention from operators protesting that rebates are too low.     Operators have now until early May to withdraw this sugar. But they have not given any sign of planned withdrawals unless the Commission reviews its export policy, they said.  REUTER 3;
19870409	ECONOMIC SPOTLIGHT - TELECOM IS KEY JAPAN MINISTRY Japan's little-known Ministry of Posts and Telecommunications (MPT) has emerged as an international force to be reckoned with, political analysts said.     MPT, thrust into the spotlight by trade rows with the U.S. And Britain, is in a position of strength due to its control of a lucrative industry and its ties with important politicians, they said.     "The ministry is standing athwart the regulatory control of a key industrial sector, telecommunications and information," said one diplomatic source.     "They are a potent political force," the diplomatic source said.     But MPT is finding domestic political prowess does not always help when it comes to trade friction diplomacy, analysts said.     "The ministry was a minor ministry and its people were not so internationalized," said Waseda University professor Mitsuru Uchida. "Suddenly they're standing at the centre of the world community and in that sense, they're at a loss (as to) how to face the situation."     Most recently the ministry has been embroiled in a row with London over efforts by Britain's Cable and Wireless Plc to keep a major stake in one of two consortia trying to compete in Japan's lucrative overseas telephone business.     The ministry has favoured the merger of the two rival groups, arguing the market cannot support more than one competitor to Kokusai Denshin Denwa Co Ltd, which now monopolizes the business.     It has also opposed a major management role in the planned merger for any non-Japanese overseas telecommunications firm on the grounds that no such international precedent exists.     The ministry's stance has outraged both London, which has threatened to retaliate, and Washington, which says the merger plan is evidence of Japan's failure to honour pledges to open its telecommunications market.     Washington is also angry over other ministry moves which it says have limited access for U.S. Firms to Japan's car telephone and satellite communications market.     Much of MPT's new prominence stems from the growth of the sector it regulates.     "What has been happening is an important shift in the economy which makes the ministry a very important place," said James Abegglen, head of the consulting firm Asia Advisory Service Inc.     A decision to open the telecommunications industry to competition under a new set of laws passed in 1985 has boosted rather than lessened MPT's authority, analysts said.     "With the legal framework eased, they became the de facto legal framework," said Bache Securities (Japan) analyst Darrell Whitten.     Close links with the powerful political faction of the ruling Liberal Democratic Party (LDP) nurtured by former Prime Minister Kakuei Tanaka are another key to MPT's influence, the analysts said.     "Other factions ignored MPT (in the 1970s), but the Tanaka faction was forward looking and ... Recognized the importance of MPT," Uchida said. Many former bureaucrats became members of the influential political group, he added.     The ministry also has power in the financial sector due to the more than 100,000 billion yen worth of deposits in the Postal Savings System, analysts said.     MPT has helped block Finance Ministry plans to deregulate interest rates on small deposits, a key element in financial liberalisation, since the change would remove the Postal Savings System's ability to offer slightly higher rates than banks, they said.     Diplomatic sources, frustrated with what they see as MPT's obstructionist and protectionist posture, have characterized the ministry as feudal.     Critics charge MPT with protecting its own turf, limiting competition and sheltering the former monopolies under its wing. Providing consumers with the best service at the lowest price takes a back seat to such considerations, they said.     But many of the ministry's actions are not unlike those of its bureaucratic counterparts in much of the Western world including Britain, several analysts said.     "The United States is really the odd man out," Abegglen said. "For a government to take the view that it wants to keep order in utilities markets is not an unusual and/or unreasonable view," he said.  REUTER 3;
19870409	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.  REUTER 3;
19870409	EGYPT BUYS PL 480 WHEAT FLOUR - U.S. TRADERS Egypt bought 125,723 tonnes of U.S. wheat flour in its PL 480 tender yesterday, trade sources said.     The purchase included 51,880 tonnes for May shipment and 73,843 tonnes for June shipment. Price details were not available.  Reuter 3;
19870409	EGYPT CANCELS WHEAT TENDER Egypt has cancelled its April 2 tender for 200,000 tonnes of any origin wheat for April 15-30 shipment, trade and Egyptian official sources said.     Trade sources said the cancellation followed an offer by an Egyptian company, Islamic Corp, at 85.80 dlrs/tonne cost and freight, undercutting other traders' offers of between 93.90 and 94.49 dlrs/tonne.     An Egyptian trade official in Paris confirmed cancellation of the tender following the Islamic Corp offer, which he said the government had refused for legal reasons.     The official denied trade reports that the government might have substituted a private deal with Islamic Corp for the original tender.  Reuter 3;
19870409	EGYPT SEEKING 500,000 TONNES CORN - U.S. TRADERS Egypt is expected to tender April 22 for 500,000 tonnes of corn for May through September shipments, private export sources said.  Reuter 3;
19870409	EIB ISSUES 40 BILLION YEN EUROBOND The European Investment Bank (EIB) is issuing a 40 billion yen eurobond due May 6, 1994 paying 4-5/8 pct and priced at 101-1/2, lead Nomura International Ltd said.     The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/8 pct while management and underwriting combined pays 1/2 pct. The payment date is May 6.     There is a mandatory purchase fund operating in years one and two, except for the first month after the payment date, whereby the EIB can purchase up to five pct of the issue each year if it is trading below par.  REUTER 3;
19870409	EQUITICORP H.K. UNIT TO RAISE 30 MLN U.S. DLRS <Equiticorp Hongkong Ltd> is planning a 30 mln U.S. Dlr transferrable loan facility to raise working capital, lead managers  and , said.     The two year loan with bullet repayment carries interest at 5/8 of a percentage point over the London interbank offered rate. It will be guaranteed by parent company  of New Zealand, the managers said.     Syndication is proceeding and managers and participants are being invited to participate at four levels with management fees ranging from 15 to 30 basis points, it said.  REUTER 3;
19870409	EUROPEAN MARKETS REACT QUIETLY TO G-7 COMMUNIQUE European currency markets reacted quietly to the G-7 communique, with comments from bankers and dealers ranging from disappointment that it was not more concrete to surprise that the markets should have expected so much.     The dollar opened lower against virtually all currencies and traded in a narrow range after the communique, which reaffirmed support for the Paris accord on currency stabilisation but contained no moves to strengthen it.     Dealers in Frankfurt and Zurich saw the dollar remaining broadly entrenched in its current trading range.     "The dollar is likely to stay within a range of 1.80 to 1.84 marks," said Gisela Steinhaeuser, senior dealer at Chase Bank AG. She said there was some resistance to further climbs.     However, she said the dollar could break out of the range with major surprises such as a worse-than-expected U.S. Merchandise trade deficit, due next Tuesday.     Theodor Stadelmann, dealer with Bank Julius Baer and Co Ltd in Zurich, said he expects the dollar to hold steady against the mark and Swiss franc but to weaken further against the yen, possibly to 140 yen.     A Milan banker shared Stadelmann's view, saying he expects a dollar-yen range of 140-150 in the short term.     London traders said the G-7 communique failed to curb underlying bearishness toward the dollar but this negative sentiment was not yet strong enough to tempt interbank operators to test the downside.     Concern that finance ministers and officials still in Washington could issue more concrete statements in favour of currency stabilisation kept players sidelined, along with worries about provoking fresh central bank intervention in the near term, the traders said.     Most Paris dealers expressed disappointment at the communique, saying nothing has changed to reverse the dollar's downward trend.     Traders in several centres said the market would look for fresh opportunities to test the willingness of central banks to defend current ranges, which the communique said were "broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting."     Dave Jouhin, senior dealer at Midland Bank in London, said "They're going to put somebody's resolve to the test soon." The U.S. February trade data may provide the trigger, dealers said.     However, some dealers said London-based operators would be unlikely to open major positions next week ahead of the long Easter weekend. They saw near-term technical support at 1.825 marks and 145 yen and resistance about 1.83 marks and 146 yen.     Chase Bank's Steinhaeuser and other Frankfurt dealers said the G-7 communique guaranteed a relatively calm and stable market for the foreseeable future compared with the extreme volatility seen in the first few months of this year.     One dealer at a German bank said the wording of the communique made clear the leading nations did not want a further dollar drop, and this was supporting the dollar.     The German dealer saw the dollar gradually appreciating to 1.87 marks, broadly seen as its upper limit within the Louvre accord's supposed currency target range.     A Swiss bank economist said he believed the markets were ready for a period of "mainly sideways movement."     But Milan dealers were sceptical about the communique contributing to greater stability.     "Nothing has changed substantially to give the dollar a big boost," said one dealer, while another Italian banker said he expects the dollar to trade between 1.77 and 1.87 German marks in the next three months.     A Swiss monetary source, who asked not to be named, said the communique had been in line with realistic expectations and should not have produced disappointment.     "The problem is that the changes needed in fiscal and trade policies to redress current imbalances are of a different timescale than currency markets operate on," the source told Reuters, "This is a political process which takes time."     Alois Schwietert, chief economist at Swiss Bank Corp in Basle, also questioned the tone of disappointment evident on currency markets today. "Did people really expect a patent remedy?" he asked.     Bank economists in Paris noted yesterday's meeting was only the first in a series and said the market would watch carefully in the next few weeks for any changes in positions.     A senior economist with Banque Indosuez said the focus was now on trade and growth rather than interest rates. Any move by Japan and West Germany to boost their economic growth could lead to a quick change in the U.S. Position.     Dealers in all centres agreed that markets would be wary in pushing the dollar too far too quickly in the coming months while central banks appear resolved to use their muscle to support the Paris accord.  REUTER 3;
19870409	EUROPEAN MARKETS REACT QUIETLY TO G-7 COMMUNIQUE European currency markets reacted quietly to the G-7 communique, with comments from bankers and dealers ranging from disappointment that it was not more concrete to surprise that the markets should have expected so much.     The dollar opened lower against virtually all currencies and traded in a narrow range after the communique, which reaffirmed support for the Paris accord on currency stabilisation but contained no moves to strengthen it.     Frankfurt and Zurich dealers saw the dollar staying broadly entrenched in its current trading range.  REUTER 3;
19870409	EUROPEAN MARKETS REACT QUIETLY TO G-7 COMMUNIQUE European currency markets reacted quietly to the G-7 communique, with comments from bankers and dealers ranging from disappointment that it was not more concrete to surprise that the markets should have expected so much.     The dollar opened lower against virtually all currencies and traded in a narrow range after the communique, which reaffirmed support for the Paris accord on currency stabilisation but contained no moves to strengthen it.     Dealers in Frankfurt and Zurich saw the dollar remaining broadly entrenched in its current trading range.     "The dollar is likely to stay within a range of 1.80 to 1.84 marks," said Gisela Steinhaeuser, senior dealer at Chase Bank AG. She said there was some resistance to further climbs.     However, she said the dollar could break out of the range with major surprises such as a worse-than-expected U.S. Merchandise trade deficit, due next Tuesday.     Theodor Stadelmann, dealer with Bank Julius Baer and Co Ltd in Zurich, said he expects the dollar to hold steady against the mark and Swiss franc but to weaken further against the yen, possibly to 140 yen.     A Milan banker shared Stadelmann's view, saying he expects a dollar-yen range of 140-150 in the short term.     London traders said the G-7 communique failed to curb underlying bearishness toward the dollar but this negative sentiment was not yet strong enough to tempt interbank operators to test the downside.     Concern that finance ministers and officials still in Washington could issue more concrete statements in favour of currency stabilisation kept players sidelined, along with worries about provoking fresh central bank intervention in the long term, the traders said.     Most Paris dealers expressed disappointment at the communique, saying nothing has changed to reverse the dollar's downward trend.     Traders in several centres said the market would look for fresh opportunities to test the willingness of central banks to defend current ranges, which the communique said were "broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting."     Dave Jouhin, senior dealer at Midland Bank in London, said "They're going to put somebody's resolve to the test soon." The U.S. February trade data may provide the trigger, dealers said.     However, some dealers said London-based operators would be unlikely to open major positions next week ahead of the long Easter weekend. They saw near-term technical support at 1.825 marks and 145 yen and resistance about 1.83 marks and 146 yen.     Chase Bank's Steinhaeuser and other Frankfurt dealers said the G-7 communique guaranteed a relatively calm and stable market for the foreseeable future compared with the extreme volatility seen in the first few months of this year.     One dealer at a German bank said the wording of the communique made clear the leading nations did not want a further dollar drop, and this was supporting the dollar.     The German dealer saw the dollar gradually appreciating to 1.87 marks, broadly seen as its upper limit within the Louvre accord's supposed currency target range.     A Swiss bank economist said he believed the markets were ready for a period of "mainly sideways movement."     But Milan dealers were sceptical about the communique contributing to greater stability.     "Nothing has changed substantially to give the dollar a big boost," said one dealer, while another Italian banker said he expects the dollar to trade between 1.77 and 1.87 German marks in the next three months.  Reuter 3;
19870409	EXPORT BONUS WHEAT FLOUR TO IRAQ --USDA The Commodity Credit Corporation (CCC) accepted a bid for an export bonus to cover a sale of 12,500 tonnes of U.S. wheat flour to Iraq, the U.S. Agriculture Department said.     The department said the bonus awarded was 105.82 dlrs per tonne and the wheat flour is for shipment July 1-10, 1987.     The bonus was awarded to The Pillsbury Company and will be paid in the form of commodities from CCC stocks.     An additional 150,000 tonnes of wheat flour is still available to Iraq under the Export Enhancement Program initiative announced January 7, 1987, the department said.  Reuter 3;
19870409	EXPORT BONUS WHEAT FOR JORDAN --USDA The Commodity Credit Corporation (CCC) accepted eight bonus offers from two exporters on sales of 190,000 tonnes of hard red winter and 35,000 tonnes of soft red winter wheat to Jordan, the U.S. Agriculture Department said.     The department said the bonuses awarded averaged 38.08 dlrs per tonne and the wheat is for delivery May-November, 1987.     The bonus awards were made to Louis Dreyfus Corp (200,000  tonnes), and Continental Grain Co (25,000 tonnes) and will be paid in the form of commodities from CCC stocks.     The purchases of U.S. wheat completes the Export Enhancement Program initiative announced on December 31, 1986.  Reuter 3;
19870409	EXXON <XON> CUTS HEATING OIL PRICE, TRADERS SAID Oil traders in the New York area said Exxon Corp's Exxon U.S.A. unit reduced the price it charges contract barge customers for heating oil in New York harbor 0.50 cent a gallon, effective today.     They said the reduction brings Exxon's contract barge price to 49.75. The price decrease follows sharp declines in heating oil prices in the spot and futures markets, traders said.  Reuter 3;
19870409	EXXON <XON> SOUTH AFRICAN UNIT ACQUIRED BY ZENEX  said it acquired the interests of Esso South Africa, the local subsidiary of Exxon Corp  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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED French operators have requested licences to export 320,000 tonnes of free market barley, 225,000 tonnes of maize, 25,000 tonnes of free market bread-making wheat and 20,000 tonnes of feed wheat at today's EC tender, trade sources said.     For the barley, rebates of between 138 and 141.25 European currency units (Ecus) per tonne were sought, for maize they were between 129.65 and 139 Ecus, for bread-making wheat around 145 Ecus and for feed wheat around 142.45 Ecus.     Barley rebates of up to 138.50 Ecus were requested for a total of 40,000 tonnes and at 139 Ecus for 85,000 tonnes.     Rebates of up to 130 Ecus per tonne were requested for a total of 55,000 tonnes maize and up to 131 Ecus for 105,000 tonnes, the sources said.  Reuter 3;
19870409	FROST AND SULLIVAN INC <FRSL> INCREASES PAYOUT Semi-annual div seven cts vs six cts prior     Pay June One     Record May One .  Reuter 3;
19870409	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.  Reuter 3;
19870409	G-7 ISSUES STATEMENT AFTER MEETING Following is the text of a statement by the Group of Seven -- the U.S., Japan, West Germany, France, Britain, Italy and Canada -- issued after a Washington meeting yesterday.     1. The finance ministers and central bank governors of seven major industrial countries met today.     They continued the process of multilateral surveillance of their economies pursuant to the arrangements for strengthened economic policy coordination agreed at the 1986 Tokyo summit of their heads of state or government.     The managing director of the International Monetary Fund also participated in the meeting.     2. The ministers and governors reaffirmed the commitment to the cooperative approach agreed at the recent Paris meeting, and noted the progress achieved in implementing the undertakings embodied in the Louvre Agreement.     They agreed, however, that further actions will be essential to resist rising protectionist pressures, sustain global economic expansion, and reduce trade imbalances.     In this connection they welcomed the proposals just announced by the governing Liberal Democratic Party in Japan for extraordinary and urgent measures to stimulate Japan's economy through early implementation of a large supplementary budget exceeding those of previous years, as well as unprecedented front-end loading of public works expenditures.     The government of Japan reaffirmed its intention to further open up its domestic markets to foreign goods and services.     3. The ministers and governors 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.     In that connection they welcomed the strong implementation of the Louvre Agreement.     They concluded that present and prospective progress in implementing the policy undertakings at the Louvre and in this statement provided a basis for continuing close cooperation to foster the stability of exchange rates.  REUTER 3;
19870409	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.  REUTER 3;
19870409	GALAXY OIL <GOX> BEING DELISTED BY AMEX Galaxy Oil Co said its common stock and nine pct convertible subordinated debentures due 1994 are being delisted from the  because the company no longer meets listing criteria.     Galaxy filed Chapter 11 bankruptcy on April Six.     The company said trading in both issues will be suspended by the Amex at the close on May One but is expected to start elsewhere on May Four.  Reuter 3;
19870409	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  Reuter 3;
19870409	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 .     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.     REUTER 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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 3;
19870409	GERMAN MONEY MARKET SPLIT ON LOWER RATE PROSPECTS Remarks by central bankers raised some hopes the Bundesbank will cut rates on securities repurchase pacts, but operators remained divided on the likelihood of a move in the near term, money market dealers said.     Comments by Bundesbank board member Claus Koehler yesterday that rate cuts were needed to curb money supply growth from speculative capital inflows, and by West Berlin state central bank president Dieter Hiss that there was no natural lower limit to the discount rate had, however, no immediate impact.     Call money declined to 3.65/75 pct from 3.75/85 pct but the drop was tied to extra liquidity in the market, dealers said.     Dealers said the Bundesbank's latest liquidity allotment this week dashed some hopes of lower rates.     The Bundesbank allotted only 6.1 billion marks yesterday in new liquidity in a repurchase pact at an unchanged rate of 3.80 pct, thus subtracting some 8.8 billion marks from the market, as an outgoing 14.9 billion pact expired.     But some dealers said the smaller volume awarded by the pact was in line with present liquid money market conditions, and did not exlude a cut in the repurchase pact rate soon to 3.70 pct if money market rates continue at present levels.     The next opportunity for the Bundesbank to lower rates on repurchase pacts will be in a tender expected next Tuesday.     Bundesbank officials have already said they favour more discreet rate adjustments through repurchase pacts, rather than the more public adjustment of leading rates.     The Bundesbank may either set a fixed allocation rate and allow banks to tender for the volume, as has been the case since it lowered its discount rate January 22, or else it may allow banks to tender for the rate and set the volume itself.     Dealers expect volume of the tender to be lower than the 15.2 billion marks flowing out, to offset other incoming funds.     Some seven billion marks is expected to flow in next week. This should then flow back into the market as it is deposited with banks.     Banks were well supplied with liquidity, holding 61.5 billion marks in reserves at the Bundesbank on Tuesday.     Holdings of average daily reserves over the first seven days of April stood at 59.6 billion marks, still above the estimated 51 billion required for all of April.  REUTER 3;
19870409	GILLETTE CANADA ISSUES 70 MLN STG BOND Gillette Canada Inc is issuing a 70 mln stg bond due October 30, 1993 carrying a coupon of 9-5/8 pct and priced at 101-1/2, Morgan Stanley Ltd said as lead manager.     The issue is guaranteed by Gillette Co and is available in denominations of 1,000 and 5,000 stg. Payment date is April 30 and there is a long first coupon.     The issue will be listed in Luxembourg.     There is a selling concession of 1-1/4 pct and a combined management and underwriting fee of 5/8 pct.  Reuter 3;
19870409	GILLETTE CANADA ISSUES 70 MLN STG BOND Gillette Canada Inc is issuing a 70 mln stg bond due October 30, 1993 carrying a coupon of 9-5/8 pct and priced at 101-1/2, Morgan Stanley Ltd said as lead manager.     The issue is guaranteed by Gillette Co and is available in denominations of 1,000 and 5,000 stg. Payment date is April 30 and there is a long first coupon.     The issue will be listed in Luxembourg.     There is a selling concession of 1-1/4 pct and a combined management and underwriting fee of 5/8 pct.  REUTER 3;
19870409	GLOBAL ECONOMIC SLOWDOWN RAISES NEW DEBT FEARS The global economy is expected to weaken this year, adding new worries to an already serious poverty outlook, economic analysts said.     For finance ministers and central bankers attending this week's semi-annual meetings of the International Monetary Fund and World Bank, the new figures released by the IMF add an additional concern.     The Fund estimated world output would only grow by 2.7 pct this year, versus 2.9 pct last year, and 3.1 pct in 1985.     In the industrial countries, Gross National Product, a measure of all goods and services, was expected to decline to 2.3 pct this year, compared with 2.4 pct in 1986, the IMF said.     For the developing countries, the Gross Domestic Product, another measure of economic growth, was expected to fall to 3.0 pct from 3.5 pct last year.     The new figures are considered a major disappointment to the poorest countries. They had hoped that new vitality in the industrial countries brought on by a sharp decline in oil prices would assist their economic recovery and help them cope with growing mounds of debt.     IMF officials, discussing their outlook, said they believed the industrial country economies would move up to an annual growth rate of three pct by the end of the decade.     Economic analysts and the IMF have been saying for some time that the ability to keep the debt crisis from turning into an economic rout rests on sustained economic growth.     Since the debtor countries must look to the wealthier states for markets for their products as well as financial assistance, economic weakness in the developed nations'  economies poses fundamental worries.     Debtor countries, including the very poorest states, have only a few avenues open to them for earning foreign exchange, including the key one of exports.     The U.S. economy, which is in its fifth year of expansion, has served as a mainstay for developing country exports, but it too is seen as being rather feeble this year, growing by only 2.3 pct, according to the IMF.     For this reason and because of a high trade deficit, the United States has been pressuring Japan and West Germany to ignite their economies but with little apparent success.     The IMF study also examines the course of the dollar and the curious lack of impact it has had on the U.S. trade deficit.     Reagan administration officials have been saying that the impact is now beginning to show up, although it has been much slower than expected.     The IMF observed in its World Economic Outlook that "it has to be recognized that exchange rate adjustments take time to work through to payments flows -- probably at least three years to get a resonably complete effect."     The report added, however, "the adjustments may take even more time on this occasion." REUTER^M 3;
19870409	GOODMAN FIELDER PLANS 100 MLN DLR NOTE FACILITY <Goodman Fielder Ltd>, an Australian food products and supermarket firm, is planning a 100 mln U.S. Dlr multi-option note issuance facility, lead manager BT Asia Ltd said.     Under the three-year "evergreen" facility, which can be extended annually, notes will be issued by its subsidiaries  and  and guaranteed by the parent company.     The facility is underwritten up to 75 mln dlrs at a maximum of 17.5 basis points over the London interbank offered rate. The underwriting fee is 10 basis points, BT Asia said.     The facility will allow the issuers to opt for notes not exceeding 50 mln Australian dlrs and 50 mln New Zealand dlrs on a non-underwritten basis, but the outstanding total is limited to 100 mln U.S. Dlrs, BT Asia said.     The notes, in denominations of 100,000 U.S. Or Australian or New Zealand dlrs, will have maturities of one to 12 months.     The borrower has a further option to issue, also on a non-underwritten basis, medium term notes with maturities of one to three years, it added.     The management fee was not disclosed and syndication is expected to close tomorrow.  REUTER 3;
19870409	GORDEX MINERALS LOCATES CANADA GOLD DEPOSITS Gordex Mineral Ltd said geologists located more than one mln short tons of gold-bearing deposits, 0.057 ounces per ton, at Cape Spencer.     The company said it plans to invest 2.5 mln Canadian dlrs to expand on-site treatment facilities to process 100,000 tons of gold-bearing deposits this year and 200,000 tons in 1988.     Prior to the completion of the recent exploration program, Gordex estimated the Cape Spencer deposit had 200,000 tons.     Gordex said the expansion of the Cape Spencer facilities is intended to enable operation 24 hours a day throughout the year.  Reuter 3;
19870409	GORDEX MINERALS LOCATES GOLD DEPOSITS <Gordex Mineral Ltd> said geologists located more than one mln tons of gold-bearing deposits, 0.057 ounces per ton, at Cape Spencer.     The company said it plans to invest 2.5 mln Canadian dlrs to expand on-site treatment facilities to process 100,000 tons of gold-bearing deposits this year and 200,000 tons in 1988.     Prior to the completion of the recent exploration program, Gordex estimated the Cape Spencer deposit had 200,000 tons.     Gordex said the expansion of the Cape Spencer facilities is intented to enable it to operate 24 hours a day throughout the year.  Reuter 3;
19870409	GRAIN SHIPMENTS TO THE USSR -- USDA There were 287,700 tonnes of U.S. corn shipped to the Soviet Union in the week ended April 2, according to the U.S. Agriculture Department's latest Export Sales report.     That compares with 106,200 tonnes shipped in the prior week.     There were no wheat or soybean shipments during the week.     The USSR has purchased 2,825,600 tonnes of U.S. corn, as of April 2, for delivery in the fourth year of the U.S.-USSR grain agreement.     Total shipments in the third year of the U.S.-USSR grains agreement, which ended September 30, amounted to 152,600 tonnes of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of soybeans.  Reuter 3;
19870409	GRAIN SHIPS LOADING AT PORTLAND There were six grain ships loading and eight ships were waiting to load at Portland, according to the Portland Merchants Exchange.     Reuter 3;
19870409	GRAIN SHIPS WAITING AT NEW ORLEANS Ten grain ships were loading and 14 were waiting to load at New Orleans elevators, trade sources said.  ELEVATOR                     LOADING  WAITING  Continental Grain, Westwego     1      6  Mississippi River, Myrtle Grove 1      0  ADM Growmark                    1      4  Bunge Grain, Destrehan          1      0     ELEVATOR                LOADING  WAITING  ST CHARLES DESTREHAN         1      1  RESERVE ELEVATOR CORP        1      0  PEAVEY CO, ST ELMO           1      0  CARGILL GRAIN, TERRE HAUTE   2      1  CARGILL GRAIN, PORT ALLEN    0      0  ZEN-NOH                      1      2  reuter 3;
19870409	GREAT AMERICAN MGMT<GAMI> HAS ATCOR 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.  Reuter 3;
19870409	GREYCOAT GROUP SEEKS TWO FINANCINGS U.K. Property company Greycoat Group Plc is seeking two financings, one for 120 mln stg and the other for 16 mln stg, in connection with its Embankment Place development above and around Charing Cross station in London, banking sources said.     The first transaction, a 120 mln stg credit, will be arranged by N.M. Rothschild and Sons Ltd and Bank of Tokyo International Ltd on behalf of a special purpose Greycoat subsidiary yet to be incorporated.     It matures in June 1993 but will be extendible by up to two years to June 1995 at the option of the borrower.     The first credit, a project financing, will carry a basic margin of 5/8 point over London Interbank Offered Rates (LIBOR), with an additional 1/4 pct per annum payable on outstanding amounts to the extent that the property is not substantially pre-let.     In addition, if the property is pre-sold while amounts are still outstanding, the basic margin will be reduced to 1/2 point over LIBOR, the banking sources said.     For a one year extension of the maturity an extra 1/8 point margin will be paid, with a further 1/8 point if the maturity is lengthened for the optional second year.     There will be a commitment fee of 1/4 pct per annum on available amounts and of 1/8 pct on unavailable amounts, the sources said. Rothschild is sole agent for this transaction.     The second transaction, a 16 mln stg credit for the purpose of working capital, is being arranged by Rothschild alone on behalf of the Greycoat Group Plc itself. It will be secured on a property called Brettenham House.     The margin will be 1/2 point over LIBOR in years one to four, 5/8 point over LIBOR in years five and six and 3/4 point over LIBOR thereafter. The credit will mature in June, 1995.     The sources said that a commitment fee of 20 basis points will be payable on the available tranche, with 10 basis points on unavailable amounts.  Reuter 3;
19870409	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. .  Reuter 3;
19870409	HANSON <HAN> TO BUY INT'L PROTEIN  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.              Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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.  Reuter 3;
19870409	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  Reuter 3;
19870409	HOG AND CATTLE SLAUGHTER GUESSTIMATES Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 287,000 to 295,000 head versus 292,000 week ago and 322,000 a year ago.     Cattle slaughter is guesstimated at about 124,000 to 128,000 head versus 129,000 week ago and 134,000 a year ago.  Reuter 3;
19870409	HOKKAIDO TAKUSHOKU CONVERTIBLE EUROBOND COUPON CUT The coupon on the 100 mln dlr, 15-year, convertible eurobond for Hokkaido Takushoku Bank Ltd has been set at 1-3/4 pct compared with the indicated two pct, joint-lead bookrunner Yamaichi International (Europe) Ltd said.     The conversion price was set at 1,052 yen, while the foreign exchange rate was fixed at 146.20 yen per dollar.  REUTER 3;
19870409	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.  Reuter 3;
19870409	HONEYWELL BULL SEEKING 400 MLN DLR FACILITY <Honeywell Bull> is seeking a 400 mln dlr, five-year multi option facility, arranger Banque Nationale de Paris said.     The facility will be co-arranged by Morgan Guaranty and The Industrial Bank of Japan Ltd.     The operation has an "evergreen" facility and can be extended up to eight years, BNP said.     The facility will be made up of two components. The first "A" part will consist of a maximum 400 mln dlrs with a maximum spread of Libor plus 3/8 pct.     Component "B," to be unsecured, will be for a maximum of 200 mln dlrs with a maximum spread of Libor plus 5/8 pct for the first three years, Libor plus 3/4 pct for the fourth to sixth years and LIBOR plus 7/8 pct for the seventh year.     Honeywell Bull was recently created by Cie des Machines Bull ,  and  of Japan.  REUTER 3;
19870409	HOUSE PANEL WANTS PENTAGON MANAGE U.S. STOCKPILE The House Armed Services Committee has voted for a transfer in the management of stockpiled materials for national defense to the U.S. Defense Secretary.     The committee also voted for legally-binding quantity and quality requirements on the materials, mostly metals.     The measures are a part of the Defense Authorization Bill which will be voted on in the House next month.     The purpose of the measures, passed by the committee yesterday, is to improve stockpile management and discourage sell-offs of materials that could jeopardize strategic needs, a staff member of the committee told Reuters.     "They (the stockpiles) stand to gain the most by being managed properly," said the staffer. "Management of the stockpile over the last 10 years has been atrocious."     Responsibility for stockpile management now belongs to a White House agency, the Federal Emergency Management Agency.     The staffer said under the measures passed by the committee the Secretary of Defense would have more influence over decisions to keep or sell strategic stockpile materials.     The administration has proposed a goal of 700 million dlrs worth of strategic materials to be held in the stockpile. The stockpile now contains around 10 billion dlrs of materials.     He said several agencies currently helped FEMA to manage the stockpile and decide how much to sell to help the deficit.     These agencies included the Office of Management and Budget and the Departments of Interior and Commerce, he said.     The committee believed the shared involvement in stockpile management was counter-productive, he said.  Reuter 3;
19870409	HOUSE PANEL WANTS PENTAGON MANAGE U.S. STOCKPILE The House Armed Services Committee has voted for a transfer in the management of stockpiled materials for national defense to the U.S. Defense Secretary.     The committee also voted for legally-binding quantity and quality requirements on the materials, mostly metals.     The measures are a part of the Defense Authorization Bill which will be voted on in the House next month.     The purpose of the measures, passed by the committee yesterday, is to improve stockpile management and discourage sell-offs of materials that could jeopardize strategic needs, a staff member of the committee told Reuters.     "They (the stockpiles) stand to gain the most by being managed properly," said the staffer. "Management of the stockpile over the last 10 years has been atrocious."     Responsibility for stockpile management now belongs to a White House agency, the Federal Emergency Management Agency.     The staffer said that under the measures passed by the committee the Secretary of Defense would have more influence over decisions to keep or sell strategic stockpile materials.     The administration has proposed a goal of 700 million dlrs worth of strategic materials to be held in the stockpile. The stockpile now contains around 10 billion dlrs of materials.     He said several agencies currently helped FEMA to manage the stockpile and decide how much to sell to help the deficit.     These agencies included the Office of Management and Budget and the Departments of Interior and Commerce, he said.     The committee believed the shared involvement in stockpile management was counter-productive, he said.  Reuter 3;
19870409	HUMANA <HUM> TO SELL MEDICAL OFFICES Humana Inc said it has agreed in principle to sell 68 MedFirst primary medical care facilities to  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.  Reuter 3;
19870409	IDA GIVES 18.6 MLN DLR LOAN TO SRI LANKA The International Development Association (IDA) is lending 18.6 mln dlrs to Sri Lanka for agricultural research and development, the World Bank said in a statement.     The loan is part of a 26.5 mln dlr project to improve production of commodities, mainly rice, and raise farmer incomes. Other financing for the project will come from Sri Lanka (7.1 mln dlrs) and West Germany (800,000 dlrs).     The IDA credit is interest-free and for 50 years. It includes a 10-year grace period but has annual charges of 0.5 pct on the undisbursed balance, and 0.75 pct on the disbursed balance, the Bank statement said.     The project envisages the creation of a Council of Agricultural Research to formulate a national agricultural strategy and introduce a contract research programme to finance research activities, the Bank said.     The Washington-based IDA is the World Bank's affiliate for concessionary lending.  REUTER 3;
19870409	IDA GRANTS SRI LANKA 18.6 MLN DLR CREDIT The International Development Association said it approved a 18.6 mln dlr credit to Sri Lanka to help that country strengthen its agricultural research and development.     IDA, the World Bank arm that makes interest free loans to the poorest nations, said the credit will support changes designed to raise farm income by boosting production, developing better crop varieties and improving farm systems.     It said these goals will be accomplished through the establishment of a Council of Agricultural Research which will formulate and institute an agricultural research strategy.  Reuter 3;
19870409	INDIA FOODGRAIN TARGET 160 MLN TONNES IN 1987/88 India's national foodgrain target has been fixed at 160 mln tonnes in 1987/88 (Apr-Mar), unchanged from the 1986/87 target, the Agriculture Ministry said in its annual report for 1986/87.     Actual output was estimated at 151 mln tonnes in 1986/87 due to failure of monsoon rains in 15 out of 35 meterological sub-divisions of the country.     The report gave the targets for various crops with estimated harvested crops in 1986/87 in brackets as following, in mln tonnes - rice 65 (60), wheat 49 (49), coarse grains including sorghum and millets 32 (29) and pulses 14 (13).     Despite failure of monsoon rains in recent years, it was possible to maintain higher foodgrain production, signifying growing resilience in agricultural sector, the report said.     The strategy for increasing irrigation potential along with greater use of high yielding seed varieites and improvement in fertiliser efficiency is yielding results, it said, adding total foodgrain output in 1985/86, 1984/85 and 1983/84 respectively was 150.5 mln tonnes, 145.5 mln and a record 152.4 mln.    India has targeted to produce between 178 and 183 mln tonnes of foodgrains by the last year of the seventh five-year development plan ending March 31, 1990.     Taking the midpoint of 180 mln tonnes as the target and the 1986/87 estimated production of around 151 mln tonnes, the gap of 29 mln tonnes has to be made up during the remaining three years of the plan by increasing grain output annually by more than nine mln tonnes. But the target can be achieved only with good weather, the report said.     "The major thrust programme will, therefore, be better water (irrigation) management. Simultaneously, efforts for spread of improved technology including timely use of inputs (farm materials like fertilisers) in adequate quantities have to be vigrously pursued," it said.  Reuter 3;
19870409	INDIA OILSEED OUTPUT FORECAST TO RISE India's oilseed output is expected to rise to 12.25 mln tonnes in 1986/87 ending October, up on 11.15 mln in 1985/86 but down from 12.95 mln harvested in 1984/85, the Agriculture Ministry's 1986/87 report said.     But the forecast for 1986/87 is well below a target of 14.8 mln tonnes fixed for the year, it said, adding bad weather hit groundnut and other oilseed crops.     The National Oilseeds Development Program will invest 300 mln rupees in 1986/87 on supplying improved high-yielding seeds and other support services to help boost production, it added. India imports about 1.2 mln tonnes of edible oils a year.  Reuter 3;
19870409	INDIAN STATE COMPANY BONDS PROVOKE COMPLAINTS India's private businessmen say they have been placed on an unequal footing in raising money from the capital market because government companies are wooing investors by issuing more attractive tax-free bonds.     Stock brokers and bankers polled by Reuters said although equity shares or debenture issues floated by private firms provide a higher return and shorter maturity, they are fast losing their popular appeal as they are liable to both wealth and income taxes.     Brokers said many investors are transferring funds into government company bonds because of their tax-free status and easy transferability.     About 100 private companies have postponed plans to issue equity shares and debentures in the first quarter of fiscal 1987/88 partly on account of fierce competition from public sector bonds, a merchant banker said.     They included equity shares and rights issue worth one billion rupees planned to be issued this month by Tata Fertilisers Ltd, he said, adding the issue has been postponed indefinitely.     "The government bonds are making serious inroads on the private sector companies' resources," said R. P. Goenka, president of the Federation of Indian Chambers of Commerce and Industry.     "The discriminatory tax treatment should be done away with and equal facilities be provided to the two sectors to mobilise resources from the market which is common to both," Goenka said.     A senior Finance Ministry official said government and private firms were free to compete to raise resources, adding it was not correct that public sector-issued bonds were preventing private firms from raising money on the stock market.     "Debentures and equity shares floated by private companies still account for at least 60 pct of total capital raised in stock exchanges," the ministry official said.     A spokesman at Bombay stock brokers Batliwala and Karani said government bonds were valued at about 20 billion rupees or about 40 pct of 50 billion rupees raised by both government and non-government firms in the domestic capital market in 1986/87.     The share was 35 to 40 pct of about 36.95 billion rupees mobilised in 1985/86, he said. "To save taxes, commercial banks, mainly foreign banks, and some private companies, are investing their surplus funds in the tax free bonds," he said.     "Individuals who are very well off are also investing in the bonds to gain tax benefits while only small investors are going for equities or debentures floated by private companies on a selective basis," the spokesman said.     The maturity period of government company bonds varies between seven and 10 years. No wealth or income taxes are payable on nine pct seven-year bonds but those carrying 13 pct interest on 10-year bonds are subjected to income tax if interest amount^M exceeds 7,000 rupees a year.     Equity shares, the 14 pct non-convertible debentures and 12.5 to 14 pct convertible debentures issued by private companies are not exempted from either the wealth tax or from the tax on income earned from them.     The government bonds are listed as securities but traded on India's four major stock exchanges. They can be sold freely on the stock market by simple endorsement while debentures can only be sold to the company after one year, brokers said.     Government companies are trying to capitalise on a boom in the stock market since 1984/85 sparked by liberal tax concessions and reforms in exchange operations, brokers said.     The National Thermal Power Corp, NTPC, was the first government company to issue the bonds to raise one billion rupees in January last year, breaking the monopoly of private companies on the capital market. The seven-year NTPC bond was oversubscribed three times, brokers said.     Official figures show bonds floated by government companies have been heavily oversubscribed. More state companies have sought the Ministry's permission to issue them in coming months.     NTPC's second bond issue at the end of 1986 raised 4.51 billion rupees against 1.2 billion originally permitted by the Finance Ministry.     The Mahanagar Telephone Nigam mobilised 3.83 billion rupees last year against authorised 1.5 billion and last month the Indian Railway Finance Corporation's record susbcription totalled 5.5 billion rupees against authorised 2.5 billion.     In most cases, the government has allowed the companies to maintain the oversubscribed amount, brokers said.     Goenka said that government bonds are making it increasingly difficult for private companies to launch new equity or debenture issues. He said the government could at least "fix a suitable limit on the funds to be raised through such bonds by the public sector."     Merchant bankers said the government is pressing state companies to borrow from the public by reducing financial support to them.     To ease its internal debt burden, the government has reduced the budgetary support to development investment in about 120 public sector companies to 69.92 billion rupees in 1987/88 from 77.92 billion a year earlier, official figures show.  REUTER 3;
19870409	INTEREST RATE DIFFERENTIALS TOO SMALL, BANKER SAYS Swiss National Bank President Pierre Languetin said a wider interest rate differential between the dollar and stronger currencies was needed to brake the dollar's fall.     At a news conference, he said Japan and West Germany could try to stimulate their economies further by expanding money supply, but he added "I'm not so sure it would be desirable if monetary policy became more expansive.     "But what would be useful is a greater differential in interest rates," he said.  REUTER 3;
19870409	INTERNATIONAL AMERICAN <HOME> TO ACQUIRE COS International American Homes Inc said it entered into a conditional contract to acquire the  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.      Reuter 3;
19870409	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.               Reuter 3;
19870409	IRT PROPERTY LAUNCHES DEBENTURE IN EUROMARKET IRT Property Co, a real estate investment trust based in Atlanta, Georgia, has launched a 30 mln dlr convertible subordinated debenture in the Euromarket, a partner of Chandler Partnership Ltd said.     The issue is unique in several respects and is only one of a handful of such deals to be brought to this market, he said.     Unlike most eurobonds, the issue will not be underwritten. Instead, IRT mandated Chandler Partnership to find potential investors with whom the issue can be preplaced and to then place on a "best efforts" basis what ever amount may not be subscribed.     Chandler itself was set up in the Isle of Jersey in the middle of last year as a partnership, whose members have been involved in financial markets.     The deal has two sponsors who assist in the placement-- Interallianz Bank Zurich AG and Nivison Cantrade Ltd, a small U.K. Trading firm that formerly was broker R. Nivison and Co.     The debentures are due June 1, 2002 and pay a semi-annual coupon of two pct and are priced at par. They can be converted into shares of the company's stock at 23-1/2 dlrs a share.     IRT's shares closed last night on the New York Stock Exchange at 19-7/8.     The debentures can be redeemed at par at maturity and are callable at the company's option after the first two years.     On or after August 1989 the company can call half the debentures if the stock trades for 30 days at 123 pct of the conversion price and half if it reaches 140 pct of the conversion price, Nivison said.     In addition, holders will be able to surrender half the bonds during May 1991 at 123 pct for a semi-annual yield of 7.043 pct and the other half in May 1993 at 140 pct, for a yield of 7.383 pct.     The payment date is June 1, 1987. The debentures will be listed in London and the fees for the deal total 2-1/4 pct.     Nivison said that the deal contains a convenent which states that if the company's debt to equity ratio exceeds two to one the debentures cannot be converted unless the company obtains a bank guarantee or a letter of credit.     Nivison said IRT's debt to equity ratio currently is less than one to one.     The Chandler partner said that this type of deal gives the borrower funds that are less costly than if it had done an issue in the U.S. Domestic market.  REUTER 3;
19870409	ITALIAN TREASURY BILL OFFER MEETS MIXED DEMAND Market response to the Italian Treasury's 3,000 billion lire offer of short-term bills (BOTs) was mixed, with six month paper oversubscribed but 12-month bills little in demand, Bank of Italy figures show.     Rates were unchanged on those indicated at the time the offer was announced on April 4.     The market was assigned all the 1,500 billion lire worth of six-month bills on offer after requesting a total of 1,660 billion. Effective net annualized compound yield on the bills is 9.19 pct, against 9.24 pct at the end-March auction.     Of the 1,500 billion lire of 12-month paper offered, operators requested and were assigned 911.975 billion lire at a net annualized compound rate of 9.02 pct.     The Bank of Italy took up the remaining 588.025 billion lire of 12-month paper.     The bills replace maturing paper worth 2,485 billion lire of which 1,985 billion was in the hands of market operators and the remainder with the Bank of Italy.  Reuter 3;
19870409	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  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.  Reuter 3;
19870409	JAMESWAY <JMY> MARCH SALES UP 15 PCT Jamesway Corp said sales for the five weeks ended April Four were up 15 pct to 54.1 mln dlrs from 47.1 mln dlrs a year before, with same-store sales up four pct.     The company said sales for the first nine weeks of its fiscal year were up 14 pct to 85.8 mln dlrs from 75.1 mln dlrs a year before, with same-store sales up four pct.     It noted that Easter sales will fall in April this year, instead of March as last year.  Reuter 3;
19870409	JAPAN BUSINESS LEADERS SAY G-7 ACCORD IS WORRYING The leaders of two of Japan's top business groups said in separate statements the Group of Seven (G-7) accord reached in Washington yesterday is of deep concern to Japan because it shows the major industrial nations regard the yen's current level as appropriate.     Eishiro Saito, chairman of the Federation of Economic Organizations (Keidanren), said the yen's present rate is well above adequate levels. He did not elaborate.     Takashi Ishihara, chairman of the Japan Committee for Economic Development, said the accord will not prevent the yen from rising further.     "We do not understand why the G-7 approved present rates as the yen has risen excessively since the Paris accord," Ishihara said.     G-7 members Britain, Canada, France, Italy, Japan, the U.S. And West Germany said in a statement they consider their currencies are now within ranges broadly consistent with economic fundamentals.     Saito called on each G-7 member nation to prepare to intervene in the market strongly enough to ensure exchange rates are stabilised at appropriate levels.  REUTER 3;
19870409	JAPAN BUSINESS LEADERS SAY G-7 ACCORD WORRYING The leaders of two of Japan's top business groups said in separate statements the Group of Seven (G-7) accord reached in Washington yesterday is of deep concern to Japan because it shows the major industrial nations regard the yen's current level as appropriate.     Eishiro Saito, chairman of the Federation of Economic Organizations (Keidanren), said the yen's present rate is well above adequate levels. He did not elaborate.     Takashi Ishihara, chairman of the Japan Committee for Economic Development, said the accord will not prevent the yen from rising further.     "We do not understand why the G-7 approved present rates as the yen has risen excessively since the Paris accord," Ishihara said.  Reuter 3;
19870409	JAPAN BUYS 5,000 TONNES CANADIAN RAPESEED Japan bought 5,000 tonnes Canadian rapeseed overnight at an undisclosed price for May shipment, trade sources said.  Reuter 3;
19870409	JAPAN DEVELOPMENT BANK ISSUES 150 MLN DLR EUROBOND The Japan Development Bank is issuing a 150 mln dlr eurobond due May 20, 1994 paying eight pct and priced at 101-1/8 pct, lead manager Bank of Tokyo International Ltd said.     The non-callable bond is guaranteed by Japan and is available in denominations of 5,000 dlrs.     The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct.     The payment date is May 20. Listing will be in London.  REUTER 3;
19870409	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.  REUTER 3;
19870409	JOHNSON MATTHEY'S PLATINUM GROUP PRICES Johnson Matthey today issued the following Platinum group base prices (unfabricated), all U.S. Dlrs per troy ounce.  Previous prices in parentheses.  PLATINUM  -   562   (567)  PALLADIUM -   130   (130)  IRIDIUM   -   400   (400)  RHODIUM     1,230 (1,230)  RUTHENIUM -    80    (80) 3;
19870409	JP INDUSTRIES <JPI> CONFIRMS PROPOSAL JP Industries Inc confirmed the announcement by Clevite Industries Inc  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.  Reuter 3;
19870409	K MART <KM> MARCH SALES SHOW INCREASE K mart Corp said its sales for the five weeks ended April One rose 4.6 pct to 2.18 billion dlrs from 2.08 billion dlrs a year earlier. On a comparable store basis, sales rose one-tenth of one pct.     It said year-to-date sales increased 7.9 pct to 3.64 billion dlrs from 3.37 billion dlrs in the same 1986 period. On a comparable store basis, the increase was 3.2 pct.  Reuter 3;
19870409	K MART <KM> OPENS BANK BRANCHES IN STORES K Mart Corp said it was opening branch offices of  in 21 of its stores in Florida.     The company said this brings to 57 the number of bank branch, which are part of the Nationwide Network, an alliance of 40 independent locally managed financial institutions, locations in Florida.  Reuter 3;
19870409	KAPOK CORP <KPK> CURES TECHNICAL DEFAULTS Kapok Corp said it has cured technical defaults on laons from Southeast Banking Corp  and Murray Steinfeld and has negotiated extensions of both loans.     The company also said it has arranged a one mln dlr loan secured by its Fort Lauderdale, Fla., property from Republic Bank for Savings of Jackson, Miss., and has sold its Peter Pan Restaurant in Urbana, Md., for 1,100,000 dlrs.  Reuter 3;
19870409	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.  Reuter 3;
19870409	LA LAND <LLX>,DU PONT 
GET EXPLORATION TRACTS Louisiana Land and Exploration Co said it, Du Pont Co's Conoco Inc subsidiary and 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 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. Reuter 3; 19870409 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. Reuter 3; 19870409 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." Reuter 3; 19870409 LEAD PRICES RISE ON FINELY BALANCED PHYSICALS Lead prices have risen this week against a background of a finely balanced physical sector, traders said. Further gains are possible if the USSR steps up its buying or if labour problems develop in North America, they added. London Metal Exchange (LME) prices are unusually buoyant at a time of year when seasonal demand is normally slackening and prices tending to drift lower. This buoyancy is generally attributed by traders to the low level of LME stocks and steady, if unspectacular, physical demand in the Northern Hemisphere finding supplies curtailed. The supply problems are not new but are beginning to be felt by a market in which, as peak winter demand tails off, stocks usually build fast and availability increases, traders said. The lower supply levels result from a number of different factors around the globe. Delayed shipments from Peru to Mediterranean countries because of production and transport problems, lack of Spanish exports since the closure last year of Cia La Cruz's smelter at Linares and lower output in Morocco and Greece have all meant additional demand being directed to merchants who in turn have been drawing on LME stocks. In addition Broken Hill Associated Smelters' Port Pirie, South Australia, smelter is halting production for five weeks for maintenance. Although the company said it would meet commitments, this will put further pressure on stocks. And the U.S. Company Doe Run has kept its 140,000 tonnes per year Boss, Montana smelter closed. This cut producer stocks and contributed to a closer supply/demand balance within the U.S. Market, for many years depressed by surplus production and a regular supplier to the world market. Mexican supplies, which have sometimes swelled LME stocks, have been normal but are finding ready buyers, traders said. On the demand side, winter battery manufacture has held up quite well and some U.S. Buying of lead sheet has been reported in the U.K. Soviet lead buying, notably absent in Europe in the first two months of the year, was resumed when a large buying order was filled by merchants in March. Merchant demand has fuelled the rise in LME lead prices this week and has seen cash metal move above 320 stg and establish a premium of around 10 stg over three months delivery. Specific demand has been directed towards metal in Gothenburg and Trieste warehouses. Gothenburg material is often a target for merchants shipping to the USSR, traders said. On stocks, the popular LME Continental warehouses, Antwerp and Rotterdam, have little more than 3,000 tonnes of lead each, and this is believed to be in strong hands. Out of a total 22,125 tonnes in LME stocks, the lowest level since June 1980, just over half is in U.K. Warehouses which are not popular with merchants putting together shipments. But even U.K. Stocks have dropped around 6,000 tonnes since the start of the year. Traders said this is partly due to secondary smelters buying ingots to supplement feed supplies affected by environmental controls, which put restrictions on the transport of used batteries. Labour negotiations in North America will play an important part in determining the direction of prices, with contracts expiring end-April at Cominco's Trail and Kimberley, B.C., Mine/smelter and at Doe Run's Herculaneum, Mo, smelter. Noranda's New Brunswick mine/smelter also has a contract expiry in July which may cause some nervousness in view of strikes by its zinc and copper workers over recent months. Traders said LME three months delivery, already attracting speculative buying, could rise to 320/330 stg on current firmness, while nearby tightness could widen the cash premium to 20 from four. Three months was quoted at 313 stg at midsession. Reuter 3; 19870409 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. REUTER 3; 19870409 LEX SERVICE BUYS SEARS MOTOR GROUP Lex Service Plc <LEXL.L> said it had acquired , 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 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 . 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. REUTER 3; 19870409 LONDON EURODOLLAR BONDS CLOSE LOWER Eurodollar bonds closed as much as a full point lower as the dollar fell to a post-war low against the yen and interest rates on U.S. Treasuries rose almost to eight pct. The dollar fell to 144.30 yen and recovered only slightly after foreign exchange traders in New York said the Federal Reserve intervened to buy dollars for yen. But despite the dollar's woes, Japan Development Bank, wholly owned by the Japanese government, raised 150 mln dlrs in a seven-year eurobond carrying an eight pct coupon. Lead manager for the issue, Bank of Tokyo, said the deal, at the time of pricing, was to yield 60 basis points over comparable maturity Treasuries. However, by the close of trading, that spread had narrowed to 55 and continued to slide in aftermarket activity. Dealers noted that the spread to Treasuries is wide for a newly-priced AAA-rated borrower like Japan Development Bank. For example, earlier this week, the World Bank raised U.S. Dlrs at only 25 basis points over Treasuries. Dealers said that because the borrower comes to market fairly infrequently -- the last time was about nine months ago, the spread appears wide. But officials at Bank of Tokyo said the spread is intended to compensate for the lack of liquidity and for the uncertainty currently associated with owning dollar securities. The officials said the borrower opted to raise funds in dollars, despite the currency's weakness, because it is the only market deep enough to accommodate an issue of that size. Japan Development Bank is not allowed to raise euroyen. Market sources said the deal is likely to be swapped into yen as the borrowers previous issues were. Late in the day, the deal was trading just inside its fees at less 1.75 less 1.55. Also issued today was a 40 mln dlr five-year offering from Toshiba International Finance (Netherlands) carrying a 7-3/8 pct coupon and priced at 101-1/2. Three equity linked dollar denominated deals were offered, the largest of which was a 200 mln dlr offering by Sekisui Chemical Co and guaranteed by Sanwa Bank Ltd. The issue has equity warrants attached and late in the day it was quoted on brokers' screens at 106-1/2, bid only. The Australian dollar market continued active, with Canadian Imperial Bank of Commerce offering a bond of 125 mln five-year with a zero coupon priced at 54. Late in the day, the deal was quoted at less 1-1/4 bid. A similar deal yesterday by Toronto Dominion, priced slightly higher at 54.37 pct for an effective yield of 13.52 pct, was quoted slightly lower at less 1.37 less 1.25 pct. Dealers said that investors are apparently willing to accept zero-coupon bonds yielding 50 to 100 basis points less than annual-pay bonds because their are tax benefits for retail buyers. Also, the bonds are more volatile and if interest rates fall in Australia as many analysts expect, the potential for capital gains is greater with a zero-coupon. The bonds are also better for those who expect the australian dlr to appreciate. Dealers said that the Australia dlr zero coupon bonds are apparently being placed with retail accounts on the European continent with very little placement being done in Japan. Euroyen issues sank slightly in line with prices on domestic Japanese bond markets but recovered in late trade as the yen soared. After the markets closed, the dollar fell to 144 yen. The European Investment Bank (EIB) issued a 40 mln euroyen issue paying 4-5/8 pct over seven years. This is the second seven-year yen issue in two days -- a sector of the yield curve in Japan that dealers feel has not yet become overpriced. REUTER 3; 19870409 LONDON FREIGHT MARKET FEATURES GRAIN OUT OF U.S. Moderately active grain fixing was reported out of the U.S. But none of the business involved the significant voyages to the Continent or Japan, ship brokers said. A steady 13.50 dlrs was paid from the U.S. Gulf to Morocco and 23.25 dlrs was paid for 27,000 long tons from the Gulf to Taiwan. A vessel carrying 13,500 long tons of bagged wheat flour from the Gulf to Aqaba received a lump sum of 472,500 dlrs. Grain from the Great Lakes to Algeria made 28 dlrs against 27.75 paid for similar fixing towards the end of March. Market talk suggested a Federal Commerce vessel had been booked to move grain from the Great Lakes to Morocco on Comanav account at about 22 dlrs and 15.50 had been paid for a cargo of oilseeds from British Columbia to Japan, but no confirmation was obtainable. On the Continent, shippers agreed 19 dlrs for wheat from La Pallice to Buenaventura and 10.75 dlrs for grain from Ghent to Naples/Venice range. Elsewhere, maize from East London to Japan paid 22 dlrs. Soviet charterers reappeared in the timecharter sector and secured a 30,000 tonner from Savona for a trans-Atlantic round trip at 4,450 dlrs daily and a 31,000 tonner from Antwerp-Hamburg for a similar voyage at 4,250 dlrs daily. Reuter 3; 19870409 LONDON GRAIN FREIGHTS 27,000 long tons USG/Taiwan 23.25 dlrs fio five days/1,500 1-10/5 Continental. Trade Banner - 30,000 long tons grain USG/Morocco 13.50 dlrs 5,000/5,000 end-April/early-May Comanav. Reference New York Grain Freights 1 of April 8, ship brokers say the vessel fixed by Cam from the Great Lakes to Algeria at 28 dlrs is reported to be the Vamand Wave. Reference New York Grain Freights 2 of April 8, they say the Cory Grain maize business from East London at 22 dlrs is to Japan and not to Spain as reported. Reuter 3; 19870409 LVI GROUP <LVI> TO MAKE ACQUISITION LVI Group Inc said it has agreed in principle to purchase all outstanding shares of 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. Reuter 3; 19870409 MAGMA RAISES COPPER PRICE 0.25 CT TO 65.75 CTS Magma Copper Co, a subsidiary of Newmont Mining Corp, said it is raising its copper cathode price by 0.25 cent to 65.75 cents a lb, effective immediately. Reuter 3; 19870409 MAJOR RUBBER PRODUCERS TO MEET IN SINGAPORE Officials from Indonesia, Malaysia, Singapore and, perhaps, Thailand will meet here tomorrow to discuss increased regional cooperation on rubber marketing and ways to raise rubber prices, industry sources said. The officials will discuss linking rubber markets in the four countries to improve price transparency, the sources said. This is the first time Indonesia is attending such a meeting, they said, but representatives from Thailand may not be able to attend because of their tight schedule. Malaysia, Indonesia and Thailand account for 90 pct of world rubber exports and Singapore is a major regional rubber trading centre. The Malaysian Rubber Futures market, freighting and contracts for rubber are among other issues expected to be discussed. Last month, rubber importing and exporting countries adopted a new International Natural Rubber Agreement in Geneva. The new pact is more responsive to market trends than its predecessor, the sources said, and earlier provisions allowing the buffer stock to borrow from banks have been eliminated. REUTER 3; 19870409 MALAYSIA SEEKS 42 BILLION YEN PIPELINE LOAN Malaysia has asked Japan for a 42 billion yen 25-year loan to finance the construction of gas pipelines from eastern Trengganu to southern Johor, the Overseas Economic Cooperation Fund (OECF) said. OECF's chief representative, Takashi Matsuya, told reporters the Japanese Government is appraising the loan. Another OECF official told Reuters Japan is likely to approve the loan because "it is technically and economically viable." If approved, the loan would carry a coupon rate of four pct, a grace period of seven years, Matsuya said. It would be disbursed over three years, he added. The pipeline contruction is the second phase of the Peninsular Gas Utilisation Project by Petronas, Malaysia's national oil company. The first phase was the supply of gas to households in and around the eastern oil town of Kertih. REUTER 3; 19870409 MARCH U.S. SAVINGS BONDS SALES RISE STRONGLY The Treasury said sales of EE U.S. savings bonds were 17 pct higher during March at 703 mln dlrs than in March, 1986. It was the highest savings bond sales total for any March since 1978. Total holdings of U.S. savings bonds reached 94.76 billion dlrs, the highest in the history of the program, the Treasury said. March redemptions fell six pct to 441 mln dlrs last month from 468 mln dlrs in March, 1986. For the first six months of fiscal 1987, savings bonds sales have risen 129 pct from the comparable fiscal 1986 period to 7.01 billion dlrs from 3.07 billion dlrs, the Treasury said. Reuter 3; 19870409 MAURITIUS GETS 25 MLN DLR WORLD BANK LOAN The World Bank said it approved a 25 mln dlr structural adjustment loan for Mauritius to aid that country's industrial sector. The Bank said the 17-year loan will support policy reforms designed to help increase the efficiency of the country's manufacturing sector, develop export enterprises and encourage efficient use of resources. It added, "The increased availability of foreign exchange for imports is expected to help the expansion of industrial output and exports." Reuter 3; 19870409 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. Reuter 3; 19870409 MEPC EXTENDS OFFER FOR OLDHAM MEPC Plc <MEPC.L> said that its offer for 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. REUTER 3; 19870409 MERCANTILE STORES <MST> MARCH SALES UP 0.5 PCT Mercantile Stores Co Inc said sales for the five weeks ended April four were up 0.5 pct to 184.7 mln dlrs from 183.7 mln dlrs a year earlier, with same-store sales off 1.7 pct. Mercantile said sales for the first nine weeks of its fiscal year were up 2.9 pct to 297.9 mln dlrs from 289.6 mln dlrs a year before, with same-store sales up 0.5 pct to 288.6 mln dlrs from 287.3 mln dlrs. Reuter 3; 19870409 MICHIGAN GENERAL <MGL> EXTENDS EXCHANGE OFFER Michigan General Corp said it has extended its exchange offer for its 10-3/4 pct senior subordinated debentures due December 1, 1988 until April 23. It said the offer is being extended to allow it to conclude talks with its lender and with representatives of the holders of 75 pct of the debentures on the terms of the offer. The holders have indicated their intention to tender and to reach an agreement with the company, Michigan General said. Reuter 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 MITSUBISHI TO ISSUE TWO CONVERTIBLE BONDS Mitsubishi Corp <MITT.T> said it will issue a 50 billion yen unsecured seven-year convertible bond and a 30 billion yen unsecured nine-year convertible bond on the domestic capital market through public placement with Nikko Securities Co Ltd as lead manager. Coupon and conversion price for both par-priced bonds will be set at a board meeting to be held later this month and payment is due on May 14, Mitsubishi said in a statement. The seven-year bond matures on September 30, 1994, and the nine-year bond on September 30, 1996. Mitsubishi's share price fell 30 yen to 1,200 on the Tokyo Stock Exchange today. REUTER 3; 19870409 MIYAZAWA SAYS YEN STILL INSIDE PARIS RANGE Japanese Finance Minister Kiichi Miyazawa said the strengthening of the yen against the dollar since the Paris Agreement was within the range agreed in the Louvre discussions. "I would say that what has happened (to the yen) in the past several weeks was not outside the range we agreed to in the discussions in Paris," Miyazawa told a press conference following the Group of Seven meeting here. He said the current discussions were a "reaffirmation" of that agreement, saying the "solidarity" that occurred in Paris was still in place. Reuter 3; 19870409 MIYAZAWA SAYS YEN STILL INSIDE PARIS RANGE Japanese Finance Minister Kiichi Miyazawa said the strengthening of the yen against the dollar that has occurred since the Paris Agreement was within the range agreed on in the Louvre discussions. "I would say that what has happened (to the yen) in the past several weeks was not outside the range we agreed to in the discussions in Paris," Miyazawa told a press conference following the Group of Seven meeting here. He added that the current discussions were a "reaffirmation" of that agreement, indicating that the "solidarity" that occurred in Paris was still in place. reuter 3; 19870409 MOBIL AUSTRALIA REPORTS 38.6 MLN DLR 1986 LOSS Wholly-owned Mobil Corp <MOB> unit, , 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. REUTER 3; 19870409 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 . Other drugs in Searle's pipeline include tissue plasminogen activator (TPA), made by a different process than Genentech's TPA, expected to be approved for marketing this year. Reuter 3; 19870409 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." Reuter 3; 19870409 MORGAN, OLMSTEAD, KENNEDY <MOKG> NAMES PRES Morgan, Olmstead, Kennedy and Gardner Capital Corp said Michael Fusco has been named president of its securities brokerage and investment banking firm, Morgan, Olmstead, Kennedy and Gardner Inc. Fusco formerly was executive vice president of PaineWebber Inc. He replaces G. Bryan Herrmann, who will retain his title of president of the parent group, and assume the title of vice chairman of the parent, the company said. Reuter 3; 19870409 MOROCCO TENDERS FOR 55,000 TONNES PL 480 SOYOIL Morocco is scheduled to tender April 14 for a total of 55,000 tonnes of U.S. soyoil under PL-480 for shipments from May through September, private export sources said. The tender calls for shipment of 6,100 tonnes in May, 12,200 tonnes each in June, July and August and 12,300 tonnes in September, they said. Reuter 3; 19870409 N.Y. BANK DISCOUNT BORROWINGS 169 MLN DLRS The eight major New York City banks had daily average borrowings of 169 mln dlrs from the Federal Reserve in the week ended April 8, a Fed spokesman said. A Fed spokesman said that all of the borrowings were made yesterday by fewer than half the banks. It was the second half of the two-week bank statement period that ended on Wednesday. Average borrowings by these banks were 142 mln dlrs in the first week of the period. Reuter 3; 19870409 N.Z. TRADING BANK DEPOSIT GROWTH EASES SLIGHTLY New Zealand's trading bank seasonally adjusted deposit growth rose 2.1 pct in February compared with a 2.6 pct rise in January, the Reserve Bank said. Year-on-year total deposits rose 28.9 pct compared with a 30.6 pct rise in January and 34.4 pct rise in February a year ago period, the bank said in its weekly statistical release. Total deposits rose to 17.55 billion N.Z. Dlrs in February compared with 17.18 billion in January and 13.61 billion in February 1986. Reuter 3; 19870409 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. Reuter 3; 19870409 NATIONAL AVERAGE PRICES FOR FARMER-OWNED RESERVE The U.S. Agriculture Department reported the farmer-owned reserve national five-day average price through April 8 as follows (Dlrs/Bu-Sorghum Cwt) - Natl Loan Release Call Avge Rate-X Level Price Price Wheat 2.62 2.40 IV 4.65 -- V 4.65 -- VI 4.45 -- Corn 1.38 1.92 IV 3.15 3.15 V 3.25 -- X - 1986 Rates. Natl Loan Release Call Avge Rate-X Level Price Price Oats 1.58 0.99 V 1.65 -- Barley 1.55 1.56 IV 2.55 2.55 V 2.65 -- Sorghum 2.54 3.25-Y IV 5.36 5.36 V 5.54 -- Reserves I, II and III have matured. Level IV reflects grain entered after Oct 6, 1981 for feedgrain and after July 23, 1981 for wheat. Level V wheat/barley after 5/14/82, corn/sorghum after 7/1/82. Level VI covers wheat entered after January 19, 1984. X-1986 rates. Y-dlrs per CWT (100 lbs). Reuter 3; 19870409 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. Reuter 3; 19870409 NATIONAL BEVERAGE TO ACQUIRE FAYGO BEVERAGES <National Beverage Corp> said it agreed to acquire for an undisclosed amount of cash. Faygo has revenues in excess of of 100 mln dlrs, National Beverage said. Reuter 3; 19870409 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." Reuter 3; 19870409 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 . 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. Reuter 3; 19870409 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 , 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. Reuter 3; 19870409 NATIONAL MEDICAL <NME> FILES FOR DEBT OFFERING National Medical Enterprises Inc said it filed a registration statement with the Securities and Exchange Commission covering 300 mln dlrs of debt securities. The proposed offering includes 150 mln dlrs of 30-year debentures and 150 mln dlrs of 10-year notes, the company said. Net proceeds from the offering will be used to reduce bank borrowings, National Medical said, adding, Merrill Lynch Capital Markets will manage the underwriting. Reuter 3; 19870409 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 3; 19870409 NERCI <NER> UNIT CLOSES OIL/GAS ACQUISITION Nerco Inc said its oil and gas unit closed the acquisition of a 47 pct working interest in the Broussard oil and gas field from for about 22.5 mln dlrs in cash. Nerco said it estimates the field's total proved developed and undeveloped reserves at 24 billion cubic feet, or equivalent, of natural gas, which more than doubles the company's previous reserves. The field is located in southern Louisiana. Reuter 3; 19870409 NET CHANGE IN EXPORT COMMITMENTS -- USDA The U.S. Agriculture Department gave the net change in export commitments, including sales, cancellations, foreign purchases and cumulative exports, in the current seasons through the week ended April 2, with comparisons, as follows, in tonnes, except as noted -- 4/2/87 Prev Week All Wheat 119,800 368,300 Corn 1,001,900 927,000 Soybeans 240,500 300,900 Soy Cake/Meal 117,700 170,200 Soybean Oil 2,400-x 8,100 Cotton-Y 60,200 31,900 x-minus total. Y-running bales. The indicated totals include reported commitments to both named and unnamed destinations, sales on exporters' own account and optional origin sales plus actual exports already made during the respective marketing seasons. The USDA cautions that reported outstanding sales are subject to modification, deferral or cancellation and it is unlikely that all reported quantities will be exported. USDA gave detailed breakdowns for the 1986/87 and 1987/88 seasons as follows, in thousand tonnes unless stated -- (A) - Firm sales to a declared destination. (B) - Ultimate destination not yet declared. (C) - Sales made on exporters' own account. (D) - Exporter holds option to fill commitment with supplies from origins other than U.S. (E) - Accumulated exports since season began based on data reported by exporters. (F) - Indicated total for season. (G) - USDA-projected exports for season. Note -- Totals may not add due to rounding. ALL WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/3/87 Prev Wk Named-A 3,157.6 3,684.1 1,591.4 1,635.6 Unnamed-B 143.8 144.3 87.1 57.1 E.O.A.-C 9.5 9.5 nil nil O.O.P.-D nil nil nil nil Gr Total 3,310.9 3,837.9 1,679.0 1,692.7 Ay Expd-E 21,044.6 20,433.4 Ind Ttl-F 24,355.5 24,271.3 USDAPRJ-G 27,900.0 27,900.0 SOYBEANS 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 1,774.7 1,780.3 215.9 215.9 Unnamed-B 500.3 524.8 nil 30.0 E.O.A.-C 18.4 18.4 nil nil O.O.P.-D nil nil nil nil Gr Total 2,293.4 2,323.5 215.9 245.9 Ay Expd-E 14,334.2 14,183.2 Ind Ttl-F 16,627.6 16,506.7 USDAPRJ-G 19,050.0 19,050.0 CORN 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev WK Named-A 8,559.8 8,684.8 772.1 268.8 Unnamed-B 945.7 920.1 nil nil E.O.A-C 90.8 66.9 nil nil O.O.P-D 138.0 175.0 nil nil Gr Total 9,734.3 9,846.9 772.1 268.8 Ay Expd-E 20,296.0 19,293.8 Ind Ttl-F 30,030.3 29,140.7 USDAPRJ-G 31,750.0 31,750.0 SORGHUM 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev WK Named-A 875.6 805.1 nil nil Unnamed-B 151.2 151.2 10.2-x nil E.O.A-C nil nil nil nil O.O.P-D 114.5 138.3 nil nil Gr Total 1,141.3 1,094.6 10.2-x nil Ay Expd-E 3,222.5 3,149.7 Ind Ttl-F 4,363.8 4,244.3 USDAPRJ-G 5,720.0 5,720.0 x-minus total WHEAT PRODUCTS 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 321.0 401.9 nil nil Unnamed-B nil nil nil nil E.O.A.-C nil nil nil nil O.O.P.-D nil nil nil nil Gr Total 321.0 401.9 nil nil Ay Expd-E 926.9 840.9 Ind Ttl-F 1,348.2 1,242.8 Note - Includes bulgur, semolina, farina, rolled, cracked and crushed wheat. SOYBEAN OIL 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 8.8 10.4 nil nil Unnamed-B 7.0 10.5 nil nil E.O.A-C nil nil nil nil O.O.P-D nil nil nil nil Gr Total 15.8 20.9 nil nil Ay Expd-E 138.4 135.8 Ind Ttl-F 154.2 156.7 USDAPRJ-G 610.0 610.0 SOYBEAN CAKE AND MEAL 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 788.0 869.7 50.7 48.4 Unnamed-B 76.0 94.0 nil nil E.O.A-C 2.7 6.1 nil nil O.O.P-D nil nil nil nil Gr Total 866.7 969.8 50.7 48.4 Ay Expd-E 4,098.0 3,880.6 Ind Ttl-F 4,964.7 4,850.4 USDAPRJ-G 5,760.0 5,760.0 COTTONSEED OIL 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 7.4 7.2 nil nil Unnamed-B 0.3 0.3 nil nil E.O.A.-C nil nil nil nil O.O.P.-D 7.8 7.8 nil nil Gr Total 15.4 15.2 nil nil ALL UPLAND DOMESTIC RAW COTTON-Y 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 2,007.9 2,076.1 468.2 457.2 Unnamed-B 20.3 20.2 nil nil E.O.A-C nil nil nil nil O.O.P-C nil nil nil nil Gr Total 2,028.2 2,096.3 468.2 457.2 Ay Expd-E 4,333.1 4,204.7 Ind Ttl-F 6,361.3 6,301.0 USDAPRJ-G 6,335.0 6,335.0 Y-In thousand running bales. BARLEY 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 559.5 584.5 nil nil Unnamed-B 12.7 12.7 nil nil E.O.A.-C nil nil nil nil O.O.P.-D 25.0 25.0 nil nil Gr Total 597.1 622.1 nil nil Ay Expt-E 2,464.6 2,440.7 Ind Ttl-F 3,061.7 3,062.8 USDAPRJ-G 3,270.0 3,270.0 OATS 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A nil nil nil nil Unnamed-B nil nil nil nil E.O.A.-C nil nil nil nil O.O.P.-D nil nil nil nil Gr Total nil nil nil nil Ay Expd-E 2.4 2.4 Ind Ttl-F 2.4 2.4 USDAPRJ-G 30.0 30.0 RICE 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 347.6 369.1 nil nil Unnamed-B 1.0 1.0 nil nil E.O.A-C nil nil nil nil O.O.P-D nil nil nil nil Gr Total 348.6 370.1 nil nil Ay Expd-E 1,718.8 1,688.2 Ind Ttl-F 2,067.4 2,058.3 USDAPRJ-G 2,580.0 2,580.0 HARD RED WINTER WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 1,738.0 2,019.7 893.0 943.0 Unnamed-B 80.5 70.5 107.6 77.2 E.O.A.-C nil nil nil nil O.O.P.-D nil nil nil nil Gr Total 1,818.5 2,090.2 1,000.6 1,020.2 Ay Exp-E 8,332.1 7,974.5 Ind Tl-F 10,150.6 10,064.8 WHITE WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 548.5 635.6 58.0 58.0 Unnamed-B 19.0-x 19.0-x 6.0-x 6.0-x E.O.A.-C nil nil nil nil O.O.P.-D nil nil nil nil Gr Total 529.5 616.6 52.0 52.0 Ay Exp-E 3,831.5 3,757.7 Ind Tl-F 4,361.0 4,374.3 x - denotes minus figure HARD RED SPRING WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 576.6 620.6 164.7 164.7 Unnamed-B 29.6 16.0 nil nil E.O.A.-C 0.9 0.9 nil nil O.O.P.-D nil nil nil nil Gr Total 607.1 637.5 164.7 164.7 Ay Exp-E 4,312.4 4,247.6 Ind Tl-F 4,919.5 4,885.1 DURUM WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 166.6 280.3 93.4 93.4 Unnamed-B 52.8 76.9 nil nil E.O.A.-C 2.8 2.8 nil nil O.O.P.-D nil nil nil nil Gr Total 222.2 360.0 93.4 93.4 Ay Exp-E 1,842.6 1,727.5 Ind Tl-F 2,064.8 2,087.5 SOFT RED WINTER WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk Named-A 127.8 127.8 382.3 376.5 Unnamed-B nil nil 14.0-x 14.0-x E.O.A.-C 5.8 5.8 nil nil O.O.P.-D nil nil nil nil Gr Total 133.6 133.6 368.3 362.5 Ay Exp-E 2,726.0 2,726.0 Ind Tl-F 2,859.6 2,859.6 x-minus figure Country and destinations of the identified sales of commodities reported by exporters in week ended April 2 for the respective marketing seasons were detailed by the USDA as follows, with comparisons for the previous week, in thousands of tonnes, except where noted-- ALL WHEAT 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. nil nil 50.0 50.0 Other West Europe 218.8 236.8 nil nil East Europe 261.0 346.0 25.0 25.0 ALL WHEAT Continued 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk USSR nil nil nil nil Japan 490.4 662.2 nil nil China 90.0 90.0 910.0 910.0 Taiwan 115.0 141.0 144.0 144.0 Other Asia and Oceania 654.9 730.9 28.6 78.6 Africa 959.5 1,115.0 167.1 167.1 Western Hemisphere 367.9 362.1 266.7 260.9 SOYBEANS 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. 302.2 317.7 91.4 91.4 Other West Europe 25.0 25.0 nil nil East Europe 101.0 101.0 nil nil Japan 355.4 330.5 nil nil China nil nil nil nil Taiwan 472.0 499.0 87.0 87.0 Other Asia and Oceania 164.6 187.7 nil nil Africa nil nil nil nil Western Hemisphere 354.4 391.5 37.5 37.5 SOYBEAN OIL 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. 1.5 1.5 nil nil India nil nil nil nil Other Asia and Oceania nil nil nil nil Africa nil nil nil nil Western Hemisphere 7.3 8.9 nil nil SOYBEAN CAKE/MEAL 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. 301.7 350.7 47.2 45.0 Other West Europe nil nil nil nil East Europe nil 36.0 nil nil Japan nil 3.5 nil nil Other Asia and Oceania 25.0 40.0 nil nil Africa 30.2 38.0 nil nil Western Hemisphere 431.0 401.5 3.4 3.4 CORN 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. 82.5 22.5 0.2 0.2 Other West Europe nil 0.8 nil nil E. Europe 94.0 50.0 50.0 50.0 USSR 2,432.7 2,543.8 nil nil Japan 2,767.4 2,787.8 52.4 21.0 China 495.0 555.0 nil nil Taiwan 791.0 836.0 390.0 170.0 Other Asia and Oceania 721.7 615.2 250.0 nil Africa 125.0 195.5 nil nil WestHem 1,050.5 1,114.0 29.4 27.6 UPLAND COTTON (In thousand bales) 1986/87 1987/88 4/2/87 Prev Wk 4/2/87 Prev Wk E.C. 260.9 266.1 97.9 95.0 Other West Europe 62.2 66.2 8.7 8.7 E. Europe 3.1 3.1 nil nil Japan 445.8 484.1 72.3 70.1 Taiwan 377.9 390.4 41.6 39.5 Other Asia and Oceania 741.7 783.4 244.5 241.1 Africa 16.7 13.4 nil nil Western Hemisphere 99.6 69.5 3.2 2.7 Reuter 3; 19870409 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. reuter 3; 19870409 NEW YORK BUSINESS LOANS FALL 1.31 BILLION DLRS Commercial and industrial loans on the books of the 10 major New York banks, excluding acceptances, fell 1.31 billion dlrs to 62.70 billion in the week ended April 1, the Federal Reserve Bank of New York said. Including acceptances, loans dropped 1.34 billion dlrs to 63.23 billion. Commercial paper outstanding nationally fell 4.80 billion dlrs to 334.28 billion. National business loan data are scheduled to be released on Friday. Reuter 3; 19870409 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. Reuter 3; 19870409 NORANDA BEGINS MURDOCHVILLE MINE SALVAGE Noranda Inc said it began salvage operations at its Murdochville, Quebec mine where a fire last week killed one miner and caused 10 mln dlrs in damage. Noranda said the cause and full extent of the damage is still unknown but the fire destroyed 6,000 feet of conveyor belt. The company said extreme heat from the fire caused severe rock degradation along several ramps and drifts in the mine. Production at the mine has been suspended until investigations are complete. The copper mine and smelter produced 72,000 tons of copper anodes in 1986. The smelter continues to operate with available concentrate from stockpiled supplies, Noranda said. Reuter 3; 19870409 NORANDA BEGINS SALVAGE OPERATIONS AT MURDOCHVILLE <Noranda Inc> said it began salvage operations at its Murdochville, Quebec, mine, where a fire last week killed one miner and caused 10 mln dlrs in damage. Another 56 miners were trapped underground for as long as 24 hours before they were brought to safety. Noranda said the cause and full extent of the damage is still unknown but said it does know that the fire destroyed 6,000 feet of conveyor belt. Noranda said work crews have begun securing the ramp leading into the zone where the fire was located. The company said extreme heat from the fire caused severe rock degradation along several ramps and drifts in the mine. Noranda estimated that the securing operation for the zone will not be completed before the end of April. Noranda said the Quebec Health and Safety Commission, the Quebec Provincial Police and Noranda itself are each conducting an investigation into the fire. Production at the mine has been suspended until the investigations are complete. The copper mine and smelter produced 72,000 tons of copper anodes in 1986 and employs 680 people. The smelter continues to operate with available concentrate from stockpiled supplies, Noranda said. Reuter Reuter 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 PAKISTAN GETS 70 MLN DLR WORLD BANK LOAN mln-dlr, 20-year loan to assist Pakistan in a project designed to improve power plant efficiency. Noting that a shortage of power constrains Pakistan's economic development, the Bank said one objective of the project is to provide at least 200 megawatts of additional generating capacity. Another objective is to improve the efficiency with which hydrocarbons are used by Pakistan's Water and Power Development Authority (WAPDA) in power production, it said. One effect of this would be reduced atmospheric pollution. Reuter 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 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 and 10.5 mln in 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. REUTER 3; 19870409 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. Reuter 3; 19870409 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" 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 POLYCAST <PTCC> REDUCES SPARTECH 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. Reuter 3; 19870409 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. Reuter 3; 19870409 PRICES GENERALLY LOWER AT NAIROBI COFFEE AUCTION Prices were lower at this week's coffee auction for all grades and qualities except better quality AB grades, which held steady, the Coffee Board of Kenya said. The board said it offered 35,000 bags and sold 32,876. So far this coffee year, Kenya has sold 918,707 bags to all markets, of which 326,182 are for the 1986/7 pool, with an overall average price of 41,500 shillings a tonne, it added. The board will offer 35,000 bags at its next auction on April 14. BAGS PRICE PER 50 KG OFFERED SOLD AVERAGE PB 430 430 2304.78 (2267.21) AA 7289 6834 2292.92 (2358.96) AB 12664 11895 2289.99 (2291.13) C 3198 2867 2073.15 (2107.64) T 876 876 1508.79 (1510.67) TT 1375 1375 2053.25 (2095.64) E 159 159 2250.19 (2252.18) MISC 9009 8440 1409.50 (1398.60) TOTAL 35000 32876 AVERAGE FOR SALE 2014.93 (1994.94) Reuter 3; 19870409 PROTECTIVE LIFE <PROT> IN ACQUISITION Protective Life Corp said it has signed a letter of intent to assume group insurance on July 1, subject to regulatory approvals. Terms were not disclosed. Reuter 3; 19870409 PSE TO START OPTION TRADE ON BAKER HUGHES <BHI> The Pacific Stock Exchange said it will start options trading on Baker Hughes Inc today. Expirations will be January, May, July and October. Reuter 3; 19870409 RANGER <RGO> SETS TERMS OF EUROBOND OFFER Ranger Oil Ltd said its previously reported public 75 mln U.S. convertible debenture to be placed in the European market would mature April 28, 2002, bear yearly interest of 6-1/2 pct and have a six U.S. dlr a share conversion price. Lead managers are Credit Suisse First Boston Ltd and Cazenove and Co. Reuter 3; 19870409 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. Reuter 3; 19870409 REXHAM <RXH> REPURCHASES STAKE FROM NORTEK 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. Reuter 3; 19870409 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. Reuter 3; 19870409 ROPAK <ROPK> FORMS JAPANESE UNIT Ropak corp said it has formed a new Tokyo-based subsidiary called Ropak Nippon Ltd to market its North American products in Japan. It said the new unit has started importing plastic pans and other products for the packaging of seafood and will also market rigid-plastic shipping pails for a variety of packaging uses. Reuter 3; 19870409 ROYAL DUTCH (RD) UNIT TO RAISE HEAVY FUEL PRICES Scallop Petroleum Corp, a subsidiary of Royal Dutch/Shell group, said it will raise contract prices for heavy fuel 50 cts to one dlr a barrel, effective tomorrow. The increase brings the price for 0.5 pct sulphur fuel to 21.50 dlrs, up 50 cts, 0.7 pct sulphur to 21 dlrs, up 75 cts, 0.7 pct sulphur to 21 dlrs, up 75 cts, one pct sulphur to 20.25 dlrs, up 75 cts, two pct sulphur to 19.75 dlrs, up one dlr, 2.2 pct sulphur to 19.50 dlrs, up one dlr, 2.8 pct sulphur 19 dlrs, up one dlr, the company said. Price for 0.3 pct sulphur was unchanged at 22.25 dlrs, it said. Reuter 3; 19870409 ROYAL DUTCH <RD> UNIT TO CUT HEATING OIL PRICE Royal Dutch/Shell's Scallop Petroleum Co subsidiary said it will reduce the price it charges contract barge customers in New York harbor for heating oil by 2.5 cts a gallon, effective tomorrow. The company said the price cut will bring the contract barge price for heating oil to 51 cts a gallon. Reuter 3; 19870409 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. 3; 19870409 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 Reuter 3; 19870409 SANKEI BUILDING ISSUES EQUITY WARRANT EUROBOND Sankei Building Co Ltd is issuing a 60 mln dlr equity warrant eurobond due May 7, 1992 paying an indicated coupon of 2-1/8 pct and priced at par, lead manager Nomura International Ltd said. The issue is guaranteed by Sumitomo Bank Ltd and is available in denominations of 5,000 dlrs. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7 and listing will be in Luxembourg. Final terms will be fixed on April 15. The warrants are exercisable from May 21, 1987 until April 23, 1992. REUTER 3; 19870409 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. REUTER 3; 19870409 SEARS, ROEBUCK <S> MARCH RETAIL SALES UP Sears, Roebuck and Co said retail sales of its Merchandise Group in March rose 4.2 pct to 2.62 billion dlrs from 2.51 billion dlrs a year ago. For the nine weeks ended April Four, Sears Merchandise Group sales rose 4.5 pct to 4.46 billion dlrs from 4.27 billion dlrs in the same 1986 period. Reuter 3; 19870409 SEASONAL EXPORTS REPORTED BY U.S. EXPORTERS Exports of the following commodities between start of current seasons and April 2, with comparisons, as reported to USDA by exporters, in thousand tonnes, unless noted -- 4/2/87 Prev Wk 4/3/86 Wheat 21,044.6 20,398.3 19,725.8 Soybeans 14,334.2 14,063.5 14,698.4 Corn 20,296.0 19,194.6 25,182.6-x Sorghum 3,222.5 3,149.7 3,168.9-x Soybean Oil 138.4 135.8 179.9 Soybean Meal 4,098.0 3,880.6 3,141.3 Cotton 4,333.1 4,204.7 1,510.4 X-2,059,300 tonnes of corn and 763,800 tonnes of sorghum added to reflect change in marketing year to Sept-Aug. Reuter 3; 19870409 SEKISUI CHEMICAL ISSUES EQUITY WARRANT EUROBOND Sekisui Chemical Co Ltd is issuing a 200 mln dlr equity warrant bond due May 7, 1992 paying an indicated coupon of two pct and priced at par, lead manager Yamaichi International (Europe) Ltd said. The issue is guaranteed by Sanwa Bank Ltd and is available in denominations of 5,000 dlrs. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7 while listing will be in Luxembourg. Final terms will be fixed on April 15. The warrants are exercisable from May 20, 1987 until April 20, 1992. REUTER 3; 19870409 SHANGHAI TYREb FACTORY TO RAISE 30 MLN U.S. DLRS Ta Chung Hua Rubber Factory of Shanghai will raise a 30 to 35 mln U.S. Dlr loan to expand and modernise its plant, arranger CCIC Finance Ltd said. The loan, to be lead managed by the Bank of China, is expected to mature in eight to nine years, but terms have not been finalized. The money will be used to import manufacturing equipment including technology transfer for the production of truck radial tyres. Part of the output will be exported. The expansion program is expected to cost a total 54 mln dlrs. The shortfall will be financed domestically. REUTER 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 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 Reuter 3; 19870409 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. Reuter 3; 19870409 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 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. Reuter 3; 19870409 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 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. Reuter 3; 19870409 SOVIET UNION TO IMPORT MORE GRAIN IN 86/87-USDA The U.S. Agriculture Department increased its estimate of 1986/87 grain purchases by the Soviet Union to 28 mln tonnes, up two mln tonnes from last month. In its monthly report on the Soviet grain situation, the USDA said imports will be higher than earlier estimated because Soviet grain buyers have been actively purchasing in the last month. USDA said the increased purchasing is "somewhat surprising" because of recent higher Soviet crop estimates. All of the increase in estimated imports will be in corn, USDA said. Of the 28 mln tonnes total, 15 mln tonnes will be wheat, 12 mln tonnes coarse grains, and the remaining one mln tonnes miscellaneous grains and pulses, USDA said. USDA noted that the Soviet winter grain crop suffered through a severe winter and spring field work has been delayed. The severe winter "is believed to have resulted in above average winter-kill," USDA said. Some grain trade analysts have said abnormal winter losses maybe one reason why the Soviet Union has been actively buying grain recently. USDA said Moscow already has purchased over 25 mln tonnes grain for delivery in 1986/87, including 14 mln tonnes wheat and 12 mln tonnes coarse grain. Reuter 3; 19870409 SPAIN HAS 35 MLN DLR CURRENT SURPLUS FEBRUARY Spain had a 35 mln dlr current account surplus in February compared with a 68 mln dlr surplus in January and a 355 mln dlr surplus in February last year, Bank of Spain figures show. Spain's trade deficit narrowed to 581 mln dlrs compared with 664 mln dlrs in January but the large increase in non-oil imports contributed to the substantial increase over the 159 mln dlr deficit registered in February 1986. Exports at 2.58 billion dlrs were up 19 pct compared with February last year, but imports were 46 pct higher than last February, totalling 3.16 billion dlrs. Non-oil imports totalled 2.79 billion dlrs compared with 1.91 billion in February last year, reflecting the large ammount of investment goods entering the country with the recovery of the Spanish economy, the Bank of Spain said. Spain's tourism earnings continued to grow and totalled 655 mln dlrs in February, compared with 103 mln dlrs in January and 502 mln dlrs in February last year. REUTER 3; 19870409 SPAIN'S FOREIGN RESERVES RISE IN FEBRUARY Spain's foreign reserves rose by 905 mln dlrs in February to total 17.05 billion dlrs, compared with 14.11 billion dlrs in February 1986, Bank of Spain figures show. Under a new accounting system introduced this month, Spain's foreign reserves now exclude foreign currency held by financial institutions. Under the previous system, Spain's foreign reserves would have risen by 391 mln dlrs in February, taking into account a fall of 514 mln dlrs in financial institutions' foreign currency position. In January this year, the Central Bank's foreign reserves rose by 143 mln dlrs, while financial institutions' foreign currency position fell by 118 mln dlrs. REUTER 3; 19870409 SPANISH EMPLOYERS WORRIED BY HIGH INTEREST RATES The head of Spain's employers' federation, Jose Maria Cuevas, said employers were worried about the government's monetary policies because high real interest rates were hampering investment. He told a news conference wage pacts signed so far this year were not endangering the government's five pct inflation target. The government's perceived need to control inflation by keeping a tight rein on credit was unnecessary, he said. High real interest rates were attracting an influx of speculative foreign capital which was undercutting the government's target for monetary growth, Cuevas said. Spain's most closely-watched measure of money supply, liquid assets in public hands, grew at an annualised rate of 17 pct in March, against 11.4 pct in December last year and a target range of 6.5 to 9.5 pct for 1987. To combat this, the Bank of Spain has raised its call money rate 14 times so far this year, to 14.5 pct at present from 11.8 at end-1986. Cuevas said employers were heeding the government's call to hold wage increases to its five pct inflation target this year, with increases from salary reviews awarded last year and new wage pacts averaging 5.6 pct in the first quarter of 1987. These agreements covered less than 40 pct of Spanish workers, Cuevas said, with the rest still in wage negotiations. He said Spain's current wave of strikes mainly affected the state sector, where the government is trying to impose its five pct wage ceiling. Cuevas said employers were also worried about the trend in Spain's foreign trade balance. The trade deficit in the first two months of 1987 totalled 233 billion pesetas, a 68 pct increase over the corresponding period last year. However, employers did not favour a devaluation of the peseta to correct the imbalance. REUTER 3; 19870409 SPOT TIN EASIER ON EUROPEAN FREE MARKET Spot tin on the European free market was indicated in the easier range 4,200 to 4,230 stg per tonne, for high grade metal in warehouse Rotterdam, down 20 stg from yesterday's afternoon kerb close. Stability in sterling versus the dollar continued to apply pressure to a market which is coming close to testing a psychological chart support base at 4,200 stg, traders said. Dealers said major consumers still need to cover their May and June requirements but are holding out for even lower offers. Reported high grade tin business in London was confined to end April metal at 4,225 stg. Small-scale spot business was reported by West German operators at 12.60 and 12.63 marks per kilo although the market was still being undercut by Chinese material, which traded at one stage down to 12.54 marks per kilo, traders said. REUTER 3; 19870409 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. Reuter 3; 19870409 STANDARD ELEKTRIK ISSUES AUSTRALIAN DLR EUROBOND Standard Elektrik Lorenz Finanz BV is issuing a 40 mln Australian dlr eurobond due May 11, 1990 paying 14-1/4 pct and priced at 101-1/2 pct, lead manager Credit Suisse First Boston Ltd said. It is guaranteed by Standard Elektrik Lorenz AG. The non-callable bond is available in denominations of 1,000 and 5,000 Australian dlrs and will be listed in Luxembourg. The selling concession is one pct while management and underwriting combined pays 1/2 pct. The payment date is May 11. REUTER 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 STOLTENBERG NOT SURPRISED BY DOLLAR REACTION West German Finance Minister Gerhard Stoltenberg said he was not surprised by the overnight decline of the dollar in foreign exchange markets. Speaking briefly with reporters before entering a meeting of the International Monetary Fund he said, "These minor movements don't really affect us." The dollar declined in the initial reaction to a statement by the Group of Seven industrial countries reaffirming their Paris agreement in February to maintain their currencies around current levels. Reuter 3; 19870409 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. Reuter 3; 19870409 STOP AND SHOP'S <SHP> BRADLEES MARCH SALES RISE Stop and Shop Cos Inc said its Bradlees Discount Department Stores Division's sales for the five weeks ended April four were up six pct to 156 mln dlrs from 147 mln dlrs a year before, with same-store sales up one pct. The company said sales for the first nine weeks of the year were up six pct to 259 mln dlrs from 245 mln dlrs a year before, with same-store sales up two pct. Reuter 3; 19870409 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. Reuter 3; 19870409 SWEDISH DRUG FIRM ASTRA RISE ON AIDS HOPES Swedish drug firm AB Astra <ASTS.ST> shares rose 48 crowns to 690 in the first two hours of trading on the Stockholm Bourse, amid hopes its research into anti-viral drugs may have promising results in the treatment of Acquired Immune Deficiency Syndrome (AIDS). Stockbrokers said the shares, which climbed amid heavy institutional buying, also rose in reaction to an optimistic assessment of future products in the firm's annual report which was released this week. Brokers Enskilda Fondkommission said in a report this month that Astra was a world leader in anti-viral drugs. Although Enskilda said Astra had not made any breakthrough in developing a specific drug to treat the Acquired Immune Deficiency Syndrome it noted that investors were only now discovering that the firm's approach in the area was promising. "It is clear that Astra has a tradition in anti-viral research which should prove valuable in fighting this disease," the report by Enskilda, the investment banking unit of Skandinaviska Enskilda Banken , said. Company officials could not be reached for comment on the causes of today's share rise. REUTER 3; 19870409 SWISS AGREE ON NEW PROSPECTUS RULES FOR NOTES Swiss franc notes issued after May 1 must be provided with a prospectus, virtually erasing the difference in information requirements between notes and public bonds, according to a convention drafted by the Bankers' Federation. The convention requires that lead managers draw up a prospectus naming all syndicate members and providing certain details about the borrower. In contrast to public issues, though, the prospectus must merely be made available to clients on request via all syndicate banks rather than published and distributed in printed form. The convention, which was approved by banks earlier this month, replaces an earlier convention dating from 1984 and deals with what had been widely seen as an increasingly anachronistic distinction between notes and public issues. Its publication follows a long debate among bankers on the amount of information that should be provided by borrowers, heightened by difficulties with Swiss franc issues here on recent occasions . It applies to all notes in units of at least 50,000 Swiss francs, the usual denomination, which are placed directly with customers by the syndicate and not quoted on the bourse. Anything smaller than 50,000 francs will be governed by the unchanged, more demanding rules that apply to public issues. Bankers contacted by Reuters said they did not envisage that the new requirement would present them with problems or push up fees. Many banks said that they had for some time been providing more than the legal minimum of information. Traditionally, notes or private placements, as they were also known, were medium term instruments denominated in 50,000 francs and placed largely with institutional investors. They were normally not brought onto the open market and never quoted on the stock exchange. But over the years the distinction between notes and the publicly quoted and traded bonds gradually broke down. The National Bank therefore last May abolished all remaining restrictions on maturities and denominations which still formally divided them. However, it was not in the competence of the National Bank to rule on prospectuses and banks have since continued largely as before: public issues, generally quoted on stock exchanges, have been provided with detailed prospectuses, while notes, virtually always not-quoted, have been equipped only with "information memorandums" with varying degrees of detail. The new convention attempts to put an end to this. It says each notes prospectus must contain the following seven points: - The precise terms of the issue - Details of the company performance if it is more than six months since the last annual report - Naming of all guarantors - The source of the information - Details of ratings, insofar as they have been made - For equity linked notes, details of where the company's shares are listed and price high and lows over at least the last three years. - That the lead manager has required the borrower to provide information during the lifetime of the notes on the progress of his business. According to figures from Swiss Bank Corp, total note issues by foreign borrowers reached 18.6 billion Swiss francs last year, compared with 23.6 billion francs borrowed in the form of public bonds. A majority of the note issues were for Japanese borrowers. REUTER 3; 19870409 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. REUTER 3; 19870409 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. Reuter 3; 19870409 TABUCHI ELECTRIC ISSUES 30 MLN SWISS FRANC NOTES Tabuchi Electric Co is launching 30 mln Swiss francs of five-year straight notes with a 4-3/4 pct coupon and par issue price, lead mananger Swiss Bank Corp said. Payment is due April 22. REUTER 3; 19870409 TAFT BROADCASTING <TFB> COMPLETES STATION SALE TVX Broadcast Group Inc 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. Reuter 3; 19870409 TALKING POINT/STEEL COMPANIES Steel stocks, which have had a healthy runup recently, still present some short term investment opportunities, according to some steel analysts. But others say the upturn, based on strong orders and firm prices this spring, has been strictly seasonal and will end soon. They recommend taking profits. "It's that time of year. This is strictly seasonal," said Charles Bradford of Merrill Lynch and Co. "Orders will be strong for about two months, and there are signs that some (order rates) are starting to dive already." But Dean Witter Reynolds Inc analyst Clarence Morrison sees some short-term potential in the group, which includes USX Corp <X>, Bethlehem Steel Corp , Armco Inc and Inland Steel Industries Inc . "There is still some attractiveness to steels over the short- to intermediate-term based on improved order rates and rising prices," Morrison said. He only recommends one stock, however, Inland, which is modernizing steelmaking operations to make them more efficient. Despite his bearishness, Merrill's Bradford continues to recommend Armco, which he sees as a major turnaround. Armco's steelmaking operations are profitable, the balance sheet has been improved, and its oilfield equipment business has been slimmed and put in a joint venture with USX, Bradford noted. "It's not a high-quality investment situation yet but they've come a long way," he said. "We think the stock will do moderately better than the market," he said. Armco shares, trading off 1/4 at 10 today, could go to 12, and possibly as high as 15, he said. Bradford sees Armco earning 50 to 75 cts a share in 1987, before special gains from recouped investment tax credits, against losses last year. Armco's 1988 earnings could be significantly higher, he said. Bradford is recommending sale of USX shares. "We had a buy on it below 20 but when it gets to 28, let somebody else have it," he said. The steel and energy concern will earn about one dlr a share in 1987, about half of that coming from asset sales, and from two dlrs to 2.50 dlrs in 1988, Bradford said. "But a lot depends on oil prices," he added. About 60 pct of USX's sales come from oil and natural gas. Other analysts, including Michelle Galanter Applebaum of Salomon Brothers Inc, recommend USX. "The company's done a lot (of restructuring), more than the market's given them credit for," she said. She sees the stock going to the mid 30s or higher. USX was trading up 1/8 at 28-1/2. She predicts USX will earn 18 cts a share this year and 2.73 dlrs next year against large losses in 1986. Applebaum, who is also positive on Armco and Inland, has been recommending the stocks since last November. Peter Marcus of Painewebber Inc is neutral on the group although he said the earnings outlook is improved through the third quarter. But he sees potential trouble beyond then. "I think (steel) prices on a bookings basis will start to drop by the summer," he said. Applebaum of Salomon Brothers also sees some seasonal dropoff later in the year. "But there are more positives than negatives," she said, citing reduced capacity in the domestic industry, better prices, and a weaker dollar, which should cause steel imports to drop off slightly from last year. Reuter 3; 19870409 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. Reuter 3; 19870409 TEXAS INTERNATIONAL <TEI> RETIRES SOME NOTES Texas International Co said it has retired 2,700,000 dlrs of its 10 pct third delayed convertible snior subordinated notes of 1993 Series A and B. As a result, it said it has eliminated the scheduled May 1987 conversions of 1,300,000 dlrs of Series A notes and 1,400,000 dlrs of Series B notes. Reuter 3; 19870409 THAI RICE EXPORTS FALL IN WEEK TO APRIL 7 Thailand exported 56,652 tonnes of rice in the week ended April 7, down from 75,160 tonnes the previous week, the Commerce Ministry said. It said the government and private exporters shipped 41,607 and 15,045 tonnes respectively. Private exporters concluded advance weekly sales for 48,062 tonnes against 22,086 tonnes the previous week. Thailand exported 1.29 mln tonnes of rice so far in 1987, down from 1.39 mln tonnes a year ago. It has commitments to export a further 353,045 tonnes this year. REUTER 3; 19870409 THAILAND TO RENEW LONG TERM SUGAR CONTRACTS -TRADE Thailand is to negotiate tomorrow with selected trade houses for renewal of long term raw sugar sales contracts, to cover the next five years at a rate of 60,000 tonnes annually, traders said. They also reported vague talk Algeria may be seeking 50,000 tonnes of raws tomorrow but details are unclear. REUTER 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 TORONTO DOMINION AUSTRALIA DOLLAR BOND INCREASED Toronto Dominion Bank, Nassau Branch, has increased its eurobond offering to 50 mln Australian dlrs from 40 mln, lead manager Hambros Bank Ltd said. All other terms remain the same. REUTER 3; 19870409 TORONTO DOMINION AUSTRALIA DOLLAR BOND INCREASED Toronto Dominion Bank, Nassau Branch, has increased its eurobond offering to 50 mln Australian <dlrs from 40 mln, lead manager Hambros Bank Ltd said. All other terms remain the same. REUTER 3; 19870409 TRANSCAPITAL <TFC> UNIT CLOSING 12 OFFICES TransCapital Financial Corp's TRANSOHIO Savings Bank subsidiary said it plans to close 11 offices in the Cleveland area and one in Columbus, Ohio, reducing its total number of offices to 81 statewide. The company said accounts will be moved into other TRANSOHIO offices. Four closings are set for May 23 and four for June 20 and the rest are tentatively set for September 19. It said it is closing branches were overlaps exist following its August 1986 acquisitions of Citizens Federal Savings and Loan Association of Cleveland and Dollar Savings Bank of Columbus or where efficiencies could be improved. Reuter 3; 19870409 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. Reuter 3; 19870409 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. REUTER 3; 19870409 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. REUTER 3; 19870409 U.K. MONEY MARKET GETS 103 MLN STG HELP The Bank of England said it operated in the money market this morning, buying 103 mln stg bank bills. The central bank bought in band one 60 mln stg at 9-7/8, in band two eight mln at 9-13/16, in band three 26 mln at 9-3/4 and in band four nine mln stg at 9-11/16 pct. This compares with the bank's forecast of a 400 mln stg shortfall today. REUTER 3; 19870409 U.K. POTATO FUTURES TRADING NOT TO BE SUSPENDED Trading on the London potato futures market will not be suspended, Richard Harris, Chairman of the London Potato Futures Association (LPFA), said in a statement to floor members. It was in response to strong representations by the Potato Marketing Board (PMB) complaining of a gross distortion of price which they say will result in large deliveries into the physical market when the April futures position expires. The PMB had sought an immediate suspension in futures trading and asked the LPFA to take action to restore the relationship between futures and physicals. Farmers and merchants have alleged a squeeze and cornering of the market but Harris pointed out that recent investigations by the Association of Futures Brokers and Dealers (AFBD), the International Commodities Clearing House (ICCH) and other parties, found no evidence to substantiate this. The main complaint from some sections of the physical market is what they say is an unrealistic futures premium over the PMB's average ex-farm price. April futures traded this morning between 168 and 170 stg per tonne compared with PMB's average price of 104 stg. Bill Englebright, joint secretary of the LPFA said there is a two-tier market for physical potatoes. He said quality potatoes are in short supply and prepackers have been paying between 145 and 165 stg per tonne for best samples. But lesser quality grades have traded below 100 stg. Some merchants fear that a large tonnage will be delivered against the April futures contract between now and the end of the month, and possibly disrupt the physical market. Harris said the LPFA rule book allows the management committee to take steps as necessary to correct any malpractice and he assured the committee is monitoring the situation. Reuter 3; 19870409 U.S. BANK DISCOUNT BORROWINGS 361 MLN DLRS U.S. bank discount window borrowings less extended credits averaged 361 mln dlrs a day in the week to Wednesday, April 8, the Federal Reserve said. Total daily borrowings in the week fell 99 mln dlrs to 591 mln dlrs, with extended credits down 35 mln dlrs at 230 mln dlrs. The week was the second half of the two-week statement period that ended Wednesday. Net borrowings averaged 425 mln dlrs in the first week of the period. Commenting on the two-week statement period that ended on April 8, the Fed said banks had average net free reserves of 447 mln dlrs. A Fed spokesman told a press conference that there were no large one-day net misses in the Fed's estimates of reserves in the week ended Wednesday. Of the week's borrowings, money center banks accounted for 65 pct, and small banks for almost 35 pct. On Wednesday, when net borrowings were 1.36 billion dlrs and Fed funds averaged a high 6.45 pct, money center banks accounted for more than 90 pct of the borrowing. Borrowings in the latest two weeks averaged 393 mln dlrs a day, the highest since the statement period ended January 28. Float ranged from about 250 mln dlrs on Thursday to between one and 1.25 billion dlrs on Monday and Tuesday. The spokesman said Monday's float included 500 mln dlrs in holdover float at one Fed branch due to mechanical problems. About 500 mln dlrs of Tuesday's float reflected non-weather-related transportation float in one Eastern Reserve bank. As-of adjustments ranged from minus 500 mln dlrs on Monday, when cash letter errors at two eastern reserve banks were corrected, to plus 500 mln dlrs on Thursday, when a correction was made to unposted funds at a single bank. In the first half of the statement period ended Wednesday, banks held excess reserves on the first four days of the week but ran a deficit on Wednesday. In the second week, they ran a deficit on Thursday, Friday and Monday but held excess reserves on the final two days. Reuter 3; 19870409 U.S. CONGRESSMAN INTRODUCES REAGAN SUGAR BILL Rep. John Porter, R-Ill., introduced in the House of Representatives legislation proposed by the Reagan administration to slash the U.S. sugar price support, a spokesman for Porter said. The spokesman said the bill was introduced without any changes from the administration's proposal sent to Congress last month. That plan calls for a cut in the sugar loan rate to 12 cents per pound from 18 cents now. Sugar growers would be compensated for the price cut with targeted direct payments, to be gradually phased-out through 1990. The payments to growers would cost an estimated 1.1 billion dlrs. Representatives of sugar growers have rejected the proposal, saying it would ruin the domestic sugar industry. Reuter 3; 19870409 U.S. DOLLAR LOSSES PROPEL BROAD COMMODITY GAINS Commodities from gold to grains to cotton posted solid gains in a flurry of buying today as losses in the U.S. dollar and rising interest rates kindled fears of inflation and economic instability. Gains were most pronounced on the Commodity Exchange in New York, where gold jumped 12.40 dlrs and closed at 436.50 dlrs a troy ounce, and silver 22.5 cents to 6.86 dlrs a troy ounce. A key factor behind the advance was anticipation that inflation will be the only way for the major industrial nations to halt the slide in the value of the U.S. dollar, said Steve Chronowitz, director of commodity research with Smith Barney, Harris Upham and Co., in New York. The dollar tumbled one day after top finance officials from the seven largest industrial nations reaffirmed their commitment to support its value, and despite reports of intervention by the U.S. Federal Reserve Bank, traders said. Traders said it appears that the industrial nations, known as the Group of Seven, lack the ability to change the long-term direction of the currency markets. "Maybe they have some ideas or plans," said Chronowitz. "If they do, it's not evident." "It looks like there's no cure but to let the free market take values to where they should be. "One way or another, we will force our major trading partners to stimulate their economies," as a measure to correct the mounting U.S. trade deficit, Chronowitz said. "I think the markets believe, and have believed for a long time, that the only recourse is to reflate at some point. It's going to be a long and tedious process, but that's what's happening," he said. The falling value of the dollar makes U.S. commodities cheaper for foreign buyers, stimulating demand. At the same time, traders who are holding stocks and bonds saw the value of their investments falling and many are turning to commodities such as precious metals as a hedge, said Marty McNeill, a metals analyst in New York with the trading house of Dominick and Dominick. The reaction in the metal markets reverberated throughout the commodities markets, as grains, livestock, and cotton posted broad gains. Traders at the Chicago Board of Trade said attention in the grain markets has shifted from concern about burdensome supplies to the outlook that a lower dollar will stimulate export demand. After the close of trading, the Agriculture Department raised its estimate for grain imports by the Soviet Union by two mln tonnes from the month-earlier report. Live hogs and frozen pork bellies posted sharp gains on the Chicago Mercantile Exchange, while live cattle were moderately higher. Analysts said several factors boosted hog prices. They said hogs haven't been making the weight gains that are normal at this time of year, and farmers have been too busy with field work to market animals. Reuter 3; 19870409 U.S. ENERGY FUTURES CALLED UNCHANGED TO LOWER Traders expect U.S. energy futures will open unchanged to slightly lower this morning with support near yesterday's lows. Crude futures are called unchanged to five cts weaker tracking unchanged domestic crudes and North Sea Brent crude, which traded at 18.01 dlrs a barrel today, about ten cts below yesterday's New York close. Traders said the supply squeeze in 15-day forward April Brent appears to have ended. Product futures, which fell sharply yesterday, are due to open unchanged to 0.25 cent lower, traders said. Traders expect some followthrough selling in products but said gasoil futures in London will probably lend some support since they are trading as expected. May gasoil futures were off 1.50 dlrs a tonne this morning while June was down 1.25 dlrs in thin conditions. Reuter 3; 19870409 U.S. FIRST TIME JOBLESS CLAIMS FELL IN WEEK New applications for unemployment insurance benefits fell to a seasonally adjusted 338,000 in the week ended March 28 from 355,000 in the prior week, the Labor Department said. The number of people actually receiving benefits under regular state programs totaled 2,436,000 in the week ended March 21, the latest period for which that figure was available. That was down from 2,480,000 the previous week. Reuter 3; 19870409 U.S. M-1 MONEY SUPPLY FALLS TWO BILLION DLRS U.S. M-1 money supply fell two billion dlrs to a seasonally adjusted 738.9 billion dlrs in the March 30 week, the Federal Reserve said. The previous week's M-1 level was revised to 740.9 billion dlrs from 741.0 billion, while the four-week moving average of M-1 rose to 739.8 billion dlrs from 739.7 billion. Economists polled by Reuters said that M-1 would be anywhere from down two billion dlrs to up 1.8 billion. Reuter 3; 19870409 U.S. MARCH RETAIL SALES CUT BY LATE EASTER U.S. retailers' lackluster March sales were due to a late Easter, according to analysts who expect a recovery in April. "Sales look soft because of the Easter shift, but underlying business is better than the numbers indicate," said Bear Stearns analyst Monroe Greenstein. Analysts generally average the sales results of March and April to account for the variation of Easter's occurance. This year, Easter is being observed on April 19, which is three weeks later than last year. Analyst Edward Johnson of Johnson Redbook Associates said sales for March rose an unadjusted 2.5 to 3.0 pct, and a seasonally adjusted 5.5 pct to six pct, compared to an adjusted 5.7 pct last year. "The obvious question is whether these numbers indicate that the consumer activity is slowing, but it does not appear to be because liquidity and employment are rising," said analyst Jeff Edelman, analyst of Drexel Lambert and Burnham. Overall, analysts said first half sales are coming in according to expectations. Sales for all of 1987 are expected to rise about 5.5 pct to six pct, up a bit from 1986's rise. In March, sales of housewares, furniture and big ticket items were stronger than apparel sales, signaling to many analysts that apparel sales will be strong in April as the holiday nears. "Sales gains in home appliances and home fashions reflect a continuing strength in the housing market," said Edward Brennan, chairman of Sears Roebuck and Co <S> which reported an overall sales gain of 4.2 pct. Brennan said sales of women's sportswear were also excellent. "Sears' total apparel sales was up only modestly, but even a modest improvement in apparel is a very good accomplishment due to the fact that most people will buy apparel in April," said C.J. Lawrence analysts Harry Mortner. J.C. Penney Co Inc and Dayton Hudson Corp were among the weaker performers with comparable stores sales declining 1.5 pct and 4.9 pct, respectively. Penney's store and catalog sales declined 1.3 pct overall and Dayton Hudson's overall sales rose 4.8 pct. Penney chairman William Howell said, "Sales continued strong for catalog operations and, geographically, ranged from very active in the east to weak in the economically depressed southwest." "Penney's been shifting away from leisure time activity wear to other apparel lines, which yield higher profit margins, but are currently hurting sales," said Greenstein of Bear Stearns. Hudson chairman Kenneth Mackes cited the late Easter for the decline. Edelman of Drexel said that "Hudson had a tougher comparison because it had an exceptionally good 1986." Most analysts agreed that promotions are slightly lower than last year. "Retailers are not planning for much - inventories are being kept lean, markdowns are lower than last year, but sales are coming through anyway," said CJ Analyst Harry Mortner. Mortner said he expects profits in the first quarter to be better than he had originally expected in the beginning of the year. Most retailers report their first quarter in the middle of May. MARCH RETAIL SALES FOR MAJOR U.S. RETAILERS STORE PCT 1987 1986 SEARS 4.2 2.6 BIL 2.5 BIL K MART 4.6 2.2 BIL 2.1 BIL JC PENNEY (1.3) 1.1 BIL 1.1 BIL WAL-MART 32 1.1 BIL 855 MLN FEDERATED 4.9 934 MLN 891 MLN MAY 3.5 885 MLN 855 MLN DAYTON 4.8 792 MLN 756 MLN WOOLWORTH 0.2 591 MLN 590 MLN ZAYRE 12.7 522 MLN 464 MLN Reuter 3; 19870409 U.S. MARKETS OFFER GLIMPSE OF VOLCKER NIGHTMARE Today's turmoil in the U.S. Financial markets, with bond and stock prices tumbling in the dollar's wake, is evidence of a major shift in investor psychology that is likely to spell more turbulence ahead, economists said. For two years, the markets had hailed the dollar's decline as the cure-all for the U.S. Trade deficit. Interest rates fell sharply and Wall Street became a one-way street, up. But that confidence is now cracking as the financial markets suddenly believe Fed chairman Paul Volcker's often-repeated warnings about the risks of a dollar collapse. "Volcker's been saying for a long time that a dollar freefall would be extremely dangerous - now he's got it," said David Jones, economist at Aubrey G. Lanston and Co Inc. The dollar fell below 144 yen today for the first time in 40 years as the Group of Seven finance ministers in Washington failed to convince the foreign exchange market that they have a credible strategy for redressing global trade imbalances, short of further depreciation of the dollar. Bonds suffered their biggest one-day drop in months amid worries that the dollar's slide will rekindle inflation, scare away foreign investors and force the Fed to tighten credit. The inflationary fears boosted gold bullion by more than 12 dlrs to a 1987 high of 432.20/70 dlrs an ounce, while the spike in interest rates pulled the Dow Jones Industrial Average down by 33 points to 2339. Norman Robertson, Mellon Bank chief economist, called the markets' instability frightening. He believes economic fundamentals do not justify the bearishness but said that "once you start the ball rolling it's difficult to stop." "There's a stark possibility that you could get a destabilizing drop in the dollar that forces up interest rates and drives us into recession. The markets are in a panic." Stephen Marris of the Institute for International Economics in Washington, has been warning for a long time that the controlled decline of the dollar since peaks of 3.47 marks and 264 yen in February 1985 could turn into a nightmare. "We're still more or less on track for a hard landing... But the agony may be fairly drawn out," Marris told Reuters. Marris does not expect the crisis to peak until later this year, but he warned that the situation is so fragile that it would take very little to touch off what he calls the second phase of the hard landing, whereby a loss of confidence in the dollar pushes up interest rates and leads to a recession. The stock market's reaction today and its sharp drop on March 30 shows how the loss of confidence could come about. The fact that it has not happened yet is consistent with historical experience, which teaches that domestic markets are not affected until a currency is in the final stages of its decline, Marris said. He has forecast a drop to about 125 yen. Marris felt that a major impetus for the dollar's latest weakness was the loss of credibility that central banks suffered when they failed to prevent the dollar from falling below 150 yen, the floor that the market believes was set as part of the G-7 Paris agreement in February. Robertson at Mellon, by contrast, said the loss of confidence was triggered last week when Washington announced plans to slap 300 mln dlrs of tariffs on Japanese electronic imports, raising the specter of a debilitating trade war. Many economists believe that long-run stability will not return to the markets until the root cause of the trade gap is addressed - excessive consumption in the U.S., Reflected in the massive budget deficit. But in the short term, given the failure of the G-7 and of central bank intervention, some feel that the Fed will have no choice but to tighten credit to restore faith in the dollar. "The only thing that will stop the dollar falling is a substantial increase in the discount rate and a corresponding cut abroad, at least by Japan," said Lanston's Jones. Marris expects the Fed to act quickly to raise interest rates, even at the risk of increasing the debt burden for American farmers, Latin American governments and others. But Robert Giordano, chief economist at Goldman Sachs and Co, scoffed at the notion. "It's ridiculous to think the Federal Reserve will raise interest rates when the dollar is weak against just one currency. This is yen strength, not dollar weakness," he said. Giordano said the market was ignoring the progress being made toward reducing the U.S. Budget deficit. "We're going to have one of the biggest reductions in the budget deficit relative to GNP in history this year, and nobody cares," he said, noting that only the deficit cut in 1968-69 will have been greater. He said he does not expect the dollar to collapse and thinks interest rates are likely to fall back later this year. But for now, market psychology has changed so abruptly that a further drop in the bond market cannot be ruled out. "Put on your helmets," Giordano said. REUTER 3; 19870409 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. Reuter 3; 19870409 U.S. ONE-YEAR BILL YIELDS RATE OF 5.92 PCT The U.S. Treasury said its auction of 9.76 billion dlrs of 52-week bills produced an average rate of 5.92 pct. The rate was up from 5.68 pct at the last auction of one-year bills on March 12. At today's sale, the bond-equivalent yield was 6.30 pct. Accepted bids ranged from 5.88 pct to 5.93 pct and 80 pct of bids at the high, or stopout, rate were taken. The Treasury received 26.7 billion dlrs of bids, including 554 mln dlrs in non-competitive bids from the public. The average price of the one-year bills was 94.014 and the range was 94.055 to 94.004. The average rate of 5.92 pct was the highest since 5.98 pct on July 8, 1986. Reuter 3; 19870409 U.S. SAID TO VIEW G-7 MEETING AS MAJOR SUCCESS The United States, which has long sought Japanese action to stimulate its economy, appears to be satisfied Tokyo's latest package is a major development and allows leading industrial nations to reaffirm their agreement to stabilize currencies. Monetary sources said they believed that U.S. Treasury Secretary James Baker considered Tokyo's package, announced yesterday, to be a major stimulation of the Japanese economy. But yesterday's statement by seven leading industrial powers endorses the yen's rise from around 153 to the dollar, the level at the February 22 Paris Accord, to about 145 today. And the initial reaction of currency markets in the Far East demonstrates that financial markets are unconvinced that currencies yet reflect economic fundamentals, even though the countries appear to do so. The yen sank below 145 at one point despite intervention by the Bank of Japan. Kiichi Miyazawa, Japan's Finance Minister, said the movement since Paris was consistent with currency trading ranges the nations agreed to defend in the February talks. "I would say that what has happened (to the yen) in the past several weeks was not outside the range we agreed to in the discussions in Paris," Miyazawa said yesterday. The supplementary budget worth about 34.48 billion dlrs was announced by the ruling Liberal Democratic Party on the eve of Miyazawa's departure for Washington, to attend yesterday's meetings of leading industrial nations. In a strongly worded statement terming the Japanese action "extraordinary and urgent", the meeting reaffirmed the Paris Accord by noting that current exchange rates are within ranges broadly consistent with fundamentals, or economic reality. The Group of Seven -- the United States, Japan, West Germany, France, Britain, Italy and Canada -- therefore repeated their willingness to continue close cooperation to foster exchange rate stability. The cooperation agreement has resulted in concerted central bank intervention of 8 billion to 9 billion dlrs to halt the dollar's fall. While relatively unsuccessful, the scale of intervention between so many nations is unprecedented in recent years. Monetary sources also said they understood that Secretary Baker considered the meeting to be extremely successful in the light of the Japanese announcement. They also said there was a growing feeling among the finance ministers and central bankers that cooperation over medium-term policies has replaced the bickering over short-term differences in past meetings. West Germany, whose currency has not risen anything like the yen since the Paris Agreement, appears from the face of yesterday's statement to have won acceptance from other countries that its exchange rate is acceptable. Bonn's finance minister Gerhard Stoltenberg argues that major currency shifts needed to remedy the huge imbalance between West Germany and Japan's trade surpluses and America's trade deficit have already taken place. No mention was made, however, of the U.S. commitment to cut the budget deficit even though it is implied in the reafffirmation of Paris. European nations and Japan believe deficit cuts are essential to curbing the record U.S. trade shortfall that reached nearly 170 billion dlrs last year. A similar argument was made on Capitol Hill earlier this week by Federal Reserve Board chairman Paul Volcker. A further sharp fall to redress trade imbalances would "clearly pose substantial risks of renewed inflationary momentum and could undermine confidence in future financial stability," he said. Volcker warned a further dollar fall might force the politically independent Fed to drive up interest rates. Monetary sources said that, privately, West Germany welcomed the rise in the yen against the dollar while its own currency remained relatively stable against the U.S. unit. Bonn and other European nations worry that once the weak dollar blunts Tokyo's export drive to the United States, the Japanese monolith will concentrate on European markets. The ministers, meanwhile, also continued talks on making their policy coordination more binding and one, Canadian Finance Minister Michael Wilson, said good progress was made. Wilson said they will meet before the June Economic Summit to prepare a report for the leaders of the seven nations. The United States and France, backed by the International Monetary Fund, want the seven to agree on ranges or "norms" for a limited number of economic objectives such as growth, inflation, monetary conditions, trade balances and current account balances. Sharp deviations from these guidelines would result in consultations between the countries on whether corrective action should be required. But the inclusion of currencies as one of the objectives has Bonn and London worried, monetary sources say, because it implies Washington is moving in the direction of target zones. The sources said the Reagan administration unsuccessfully sounded out its allies on a system of target zones to limit currency fluctuations just before the February meeting. The concept is a much more rigid one than the secret ranges of the Paris Accord and would mark a sharp departure from the relatively free currency markets of recent years. Reuter 3; 19870409 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. Reuter 3; 19870409 U.S. WEEKLY SOYBEAN CRUSH 19,416,000 BUSHELS Reporting members of the National Soybean Processors Association (NSPA) crushed 19,416,000 bushels of soybeans in the week ended April 8 compared with 20,115,000 bushels in the previous week and 17,160,000 in the year-ago week, the association said. It said total crushing capacity for members was 25,873,904 bushels vs 25,873,904 last week and 25,459,238 bushels last year. NSPA also said U.S. soybean meal exports in the week were 70,351 tonnes vs 135,452 tonnes a week ago and compared with 76,065 tonnes in the year-ago week. NSPA said the figures include only NSPA member firms. NSPA gave the following breakdown of the soybean crush for the week, with comparisons, in 1,000 bu: 4/08/87 4/01/87 YEAR-AGO Illinois 2,576 3,479 X Ind, Ky, Ohio 3,586 3,376 6,053-Y South East 3,871 3,791 3,058 South Central 1,631 1,934 1,563 South West 2,426 2,334 2,183 Iowa 3,450 3,550 2,815 Minn, N.D., S.D. 1,875 1,651 1,488 Total U.S. 19,416 20,115 17,160 X-Ill not reported exclusive of Ind, Ky and Ohio in year-ago period. Y-Includes Ill. Reuter 3; 19870409 USDA COMMENTS ON EXPORT SALES REPORT U.S. corn sales of just over 1.0 mln tonnes in the week ended April 2 were eight pct above the prior week, but 25 pct below the four-week average, the U.S. Agriculture Department said. In comments on its latest Export Sales Report, the department said Iraq, Japan and the USSR were the largest buyers. Sales for the next marketing year, which begins September 1, totaled 503,200 tonnes and were mainly to Iraq and Taiwan. Wheat sales of 119,300 tonnes for the current season and net reductions of 13,700 tonnes for the 1987/88 season were four-fifths below the combined total for the prior week and the four-week average, it said. Sri Lanka was the most active wheat destination with purchases of 52,500 tonnes for the current year, it said. Other significant purchasers for the current year were Mexico and Honduras, it said. Soybean sales of 240,500 tonnes were one-fifth below the prior week and nearly one-third below the four-week average. Japan, Mexico, South Korea, Italy and Israel were the major purchasers, the department said. Net sales of 117,700 tonnes of soybean cake and meal fell 31 pct from the previous week and 38 pct below the four-week average. Major increases for West Germany, Venezuela, the Netherlands and Saudi Arabia were partially offset by reductions for unknown destinations, USDA said. Activity in soybean oil resulted in decreases of 2,400 tonnes, with sales to unknown destinations down by 2,700 tonnes, while sales to Canada increased 200 tonnes, the Department said. Combined sales of 71,300 running bales of cotton -- 60,200 bales for the current season and 11,100 bales for 1987/88 season -- were four-fifths higher than the prior week's level but nine pct below the four-week average. Mexico was the dominant buyer for the current year followed by Zaire, Italy, and Spain, the department said. The primary buyers for the 1987/88 season were South Korea, Spain, Japan and Taiwan, the department said. Sorghum sales of 143,300 tonnes were 25 pct less than the prior week, with Japan and Venezuela the main buyers. Reuter 3; 19870409 USDA ESTIMATES SOVIET WHEAT, COARSE GRAINS The U.S. Agriculture Department forecast the Soviet 1986/87 wheat crop at 92.30 mln tonnes, vs 92.30 mln tonnes last month. It put the 1985/86 crop at 78.10 mln tonnes, vs 78.10 mln tonnes last month. Soviet 1986/87 coarse grain production is estimated at 103.30 mln tonnes, vs 103.30 mln tonnes last month. Production in 1985/86 is projected at 99.99 mln tonnes, vs 100.00 mln tonnes last month. USSR wheat imports are forecast at 15.00 mln tonnes in 1986/87, vs 15.00 mln tonnes last month. Imports in 1985/86 are put at 15.70 mln tonnes, vs 15.70 mln tonnes last month. USDA estimated Soviet 1986/87 coarse grain imports at 12.00 mln tonnes, vs 10.00 mln tonnes last month, and 1985/86 imports at 13.70 mln tonnes, vs 13.70 mln tonnes last month. USDA said Soviet coarse grain imports include 1986/87 corn imports, which it forecast at 8.00 mln tonnes, vs 6.00 mln tonnes last month. Corn imports in 1985/86 are estimated at 10.40 mln tonnes, vs 10.40 mln last month. Total Soviet grain imports in 1986/87, at 28.0 mln tonnes, include one mln tonnes of miscellaneous grains. Reuter 3; 19870409 USDA FLORIDA ORANGE REPORT CONSIDERED BEARISH The U.S. Agriculture Department's latest estimates on 1986/87 Florida orange production and orange juice yield are bearish for the frozen concentrated orange juice futures market because the yield increase was greater than expected, FCOJ traders and analysts said. The USDA projected an average yield of 1.50 gallons of FCOJ per box versus last month's estimate of 1.47 gallons. The government estimated Florida orange production (excluding Temples) at 122.9 mln boxes versus 124 mln last month. Temples were unchanged at 3.4 mln boxes. Traders and analysts said the unexpectedly large yield increase outweighed the anticipated drop in box count. reuter 3; 19870409 USDA FORECASTS BRAZIL/ARGENTINE SOYBEAN CROPS The U.S. Agriculture Department forecast Brazil's 1986/87 soybean crop at 17.00 mln tonnes, vs 17.00 estimated last month. It put the 1985/86 crop at 13.90 mln tonnes, vs 13.70 mln last month. The department forecast Argentina's 1986/87 soybean crop at 7.70 mln tonnes, vs 7.70 mln last month. It projected the 1985/86 crop at 7.30 mln tonnes, vs 7.30 mln last month. Brazil's 1986/87 soybean exports were forecast at 2.50 mln tonnes, vs 2.50 mln tonnes estimated last month. USDA projected 1985/86 exports at 1.20 mln tonnes, vs 1.20 mln last month. Reuter 3; 19870409 USDA ORANGE JUICE YIELD ESTIMATE The U.S. Agriculture Department projected an average yield of 1.50 gallons of frozen concentrated orange juice per box (42.0 degree brix equivalent) from Florida's 1986/87 crop. That compares with 1.47 gallons per box previously and 1.38 gallons per box from the 1985/86 crop. The crop reporting board said the estimates for the 1986/87 season are based on maturity and yields tests as of April 1. Reuter 3; 19870409 USDA REPORTS EXPORT SALES ACTIVITY The U.S. Agriculture Department said private U.S. exporters reported sales of 200,000 tonnes of wheat to Jordan, 300,000 tonnes of soybean meal to Iraq and 100,000 tonnes of corn to Algeria. The wheat for Jordan includes 165,000 tonnes of hard red winter and 35,000 tonnes of soft red winter and is for delivery during the 1987/88 marketing year. The soybean meal sales to Iraq includes 180,000 tonnes for delivery during the 1986/87 season and 120,000 tonnes during the 1987/88 season, the department said. The 100,000 tonnes of corn sales to Algeria are for delivery during the 1986/87 season, it said. The marketing year for wheat begins June 1, corn September 1, and soybean meal October 1. Reuter 3; 19870409 USDA REVISES 1986 SUMMER POTATOES The U.S. Agriculture Department made the following revisions for 1986 crop summer potatoes -- Production -- 21,003,000 cwt (100 lbs), vs 20,900,000 cwt estimated previously. Acreage for harvest -- 95,700 acres, vs 95,800 acres estimated previously. Yield per harvested acre -- 219 cwt per acre, vs 218 cwt per acre previously estimated, the department said. Reuter 3; 19870409 USDA SPRING POTATO ESTIMATES The U.S. Agriculture Department estimated 1987 spring potato production, based on April 1 conditions, at 19,267,000 cwts (100 lbs), vs 19,822,000 cwts indicated last year. The department estimated spring potato area for harvest at 79,100 acres, vs 76,700 acres estimated last month and 75,900 acres harvested last year. Spring potato yield per harvested acre is forecast at 244 cwt per acre, vs 261 cwt per acre a year ago, USDA said. Reuter 3; 19870409 USSR ADDS U.S. CORN TO COMMITMENTS - USDA The Soviet Union has added 175,600 tonnes of U.S. corn to its previous commitments for delivery in the fourth year of the U.S.-USSR Grain Supply Agreement, which began October 1, 1986, the U.S. Agriculture Department said. According to the department's Export Sales Report, covering transactions in the week ended April 2, corn transactions consisted of 140,600 tonnes of new sales and changes in destinations for 35,000 tonnes. Total corn commitments to the USSR for delivery in the fourth agreement year amount to 2,825,600 tonnes. The Soviets have not purchased wheat or soybeans in the fourth year of the agreement. Reuter 3; 19870409 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. Reuter 3; 19870409 VLSI <VLSI> PLANS DEBT OFFERING VLSI Technology Inc said it plans to file a registration statement with the Securities and Exchange Commission in mid-April covering a proposed underwritten public offering of 50 mln dlrs principal amount of convertible subordinated debentures. The company said it plans to use proceeds from the offering to fund growth and for capital expenditures associated with increasing manufacturing capacity. Reuter 3; 19870409 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 Reuter 3; 19870409 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>). REUTER 3; 19870409 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. REUTER 3; 19870409 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. Reuter 3; 19870409 WANG <WAN> SIGNS MARKETING AGREEMENT Wang Laboratories said it signed an agreement with giving Wang the right to market the Desk Top Financial Planning System for Wang's Office Information Systems (OIS) product line. Wang said the Desk Top Financial Planning System for its OIS comes in two basic packages -- the Advanced Planning System, priced at 2,995 dlrs, and the Budget Reporting System, priced at 1,995 dlrs. Both are avialable on eight inch and 5-1/4 inch diskettes, Wang said. Reuter 3; 19870409 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. Reuter 3; 19870409 WEATHER HURTS ITALIAN ORANGES - USDA REPORT Unfavorable weather conditions during the second week of March caused damage to oranges in the Calabria region in southern Italy, the U.S. Agriculture Department's officer in Rome said in a field report. The report, dated April 3, said the region accounts for about 22,000 hectares of the Italian orange crop or about 26 pct of total production. However, orange production in the region for marketing year 1986/87 is forecast at 565,000 tonnes or 25 pct of the total Italian orange crop, it said. The report said trade contacts agree that about 15 pct of the orange output in Calabria was damaged by frost. Reuter 3; 19870409 WEEKLY CAR PRODUCTION ESTIMATED LOWER With seven car assembly plants down this week, including six at General Motors Corp <GM>, U.S. carmakers are expected to built an estimated 160,111 cars for the week ending April 11, down from 177,687 a year ago, said the trade publication Ward's Automotive Reports. Year to date, it estimated domestic car output at 2,334,528, down from 2,442,221 in the same 1986 period. It projected the weeks truck output at 80,168, up from 72,026 a year earlier. Cumulative truck sales were pegged at 1,096,732, up from 1,011,029 a year ago. Reuter 3; 19870409 WEST GERMAN BEET PLANTINGS DELAYED THREE WEEKS Unseasonal cold weather has delayed sugar beet plantings in West Germany by up to three weeks, the agriculture ministry said. A ministry spokesman said in some central areas, especially in the Rhineland, farmers have taken advantage of warmer weather and started plantings in the past two days. West German planting intentions this year are put at 381,000 hectares, down from 390,500 ha last year, he said, adding that the 1980/1985 average was 405,000 ha. REUTER 3; 19870409 WEST GERMANY'S THESING ISSUES 10 MLN SFR BOND <Thesing-Verwaltungsgesellschaft GmbH> of Coesfeld, West Germany, is issuing a 10 mln Swiss franc eight year bond with an indicated 6-3/8 pct coupon and par issue price, joint lead managers Fintrelex SA and E.Gutzwiller und Cie, Banquiers said. Subscription is from May 7 until May 13. The issue is guaranteed by Schallplattentruhe A. Thesing GmbH und Co Kommanditgesellschaft, Martin Thesing Handelsgesellschaft. REUTER 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 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. Reuter 3; 19870409 WINTERHALTER <WNTLC> HOLDERS OKAY TAKEOVER Winterhalter Inc said its shareholders approved the 525,000 dlr acquisition of Winterhalter by Interface Systems Inc . The acquisition would be for 15 cts per Winterhalter share. Reuter 3; 19870409 WORLD BANK TO SUPPORT SRI LANKA IF DEFICITS CUT The World Bank will support Sri Lanka's development program provided the country reduces its budget and current account deficits, the Ministry of Finance said. It said Bank President Barber Conable at a meeting with Sri Lanka's Finance Minister Ronnie de Mel in Washington also emphasised the need for structural adjustment and reform to the economy, battered by five years of separatist disturbances. Officials said Sri Lanka's budget deficit this year is expected to surpass the projected 28.7 billion rupees while defence spending, already up by two billion rupees from a targetted 10 billion, is also likely grow. The Ministry said de Mel asked the World Bank to give Sri Lanka 6.5 billion rupees balance of payments support. REUTER 3; 19870409 WORLD MARKET PRICE FOR UPLAND COTTON - USDA The U.S. Agriculture Department announced the prevailing world market price, adjusted to U.S. quality and location, for Strict Low Middling, 1-1/16 inch upland cotton at 50.57 cts per lb, to be in effect through midnight April 16. The adjusted world price is at average U.S. producing locations (near Lubbock, Texas) and will be further adjusted for other qualities and locations. The price will be used in determining First Handler Cotton Certificate payment rates. The department said since the adjusted world price is above the loan repayment rate of 44 cts per lb for the base quality, no First Handler Cotton Certificates will be issued during the period. Based on data for the week ended April 9, the adjusted world price for upland cotton is determined as follows, in cts per lb -- Northern European Price -- 62.88 Adjustments -- Average U.S. Spot Mkt Location -- 9.98 SLM 1-1/16 Inch Cotton -- 1.80 Average U.S. Location -- 0.53 Sum of Adjustments -- 12.32 Adjusted World Price -- 50.63 Reuter 3; 19870409 WORLD SUPPLY/DEMAND ESTIMATES ISSUED BY USDA The U.S. Agriculture Department made the following 1986/87 projections in its world Supply/Demand report, with comparisons, in mln tonnes, except where noted -- Total World Grain 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Produc 1,682.31 1,686.11 1,663.69 1,663.70 Total Supply 2,025.71 2,028.45 1,919.18 1,920.13 Trade-X 212.15 211.89 204.42 203.92 Usage 1,635.01 1,630.40 1,575.78 1,577.79 End Stks 390.70 398.05 343.40 342.34 X-Based on export estimate. All Wheat 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stks 137.05 136.48 125.54 125.87 Production 529.20 528.40 498.97 498.81 Imports 97.57 98.27 94.56 94.36 Feed Use 101.79 100.82 90.19 90.56 Total Domes 517.26 514.89 487.45 488.20 Exports 101.08 101.20 95.92 95.76 End Stocks 148.99 149.99 137.05 136.48 Note - World imports/exports may not balance due to differing marketing years, grains in transit and reporting discrepancies. Coarse Grain 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 181.64 181.10 107.80 108.40 Production 835.21 838.82 844.60 844.84 Imports 95.66 93.77 95.70 95.18 Feed Use 514.07 510.20 510.20 510.80 Total Domes 796.33 793.64 770.76 772.14 Exports 98.97 98.47 96.02 95.76 End Stocks 220.52 226.28 181.64 181.10 Note - World imports/exports may not balance due to differing marketing years, grain in transit and reporting discrepancies. Corn (Mln Tonnes) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 123.08 123.11 61.09 61.75 Production 477.26 480.29 481.86 481.92 Imports 61.03 58.59 62.12 62.08 Feed Use 295.49 289.47 286.53 287.42 Ttl Domes 444.78 439.80 419.88 420.55 Exports 62.80 62.10 62.53 62.15 End Stocks 155.56 163.61 123.08 123.11 Note - World imports/exports may not balance due to differing marketing years, grain in transit and reporting discrepancies. Soybeans 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 23.03 22.84 17.59 17.58 Production 99.98 99.43 96.74 96.53 Imports 26.21 26.27 27.08 27.08 Crushings 79.69 79.33 76.16 76.15 Ttl Domes 97.53 96.40 92.36 92.34 Exports 26.45 26.43 26.02 26.01 End Stocks 25.23 25.71 23.03 22.84 Note - Imports and exports do not balance due to differing marketing years and time lags between reported exports and imports. Soybean Meal 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 2.55 2.47 2.79 2.74 Production 62.71 62.40 60.09 60.09 Imports 23.47 23.49 23.48 23.47 Consumption 62.69 62.49 61.06 61.10 Exports 23.51 23.39 22.76 22.74 End Stocks 2.52 2.47 2.55 2.47 Note - Imports and exports may not balance due to differing marketing years and time lags between reported exports and imports. Soybean Oil 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 1.61 1.51 1.37 1.36 Production 14.20 14.13 13.65 13.66 Imports 3.31 3.29 3.08 3.05 Consumption 14.02 14.03 13.33 13.40 Exports 3.33 3.35 3.15 3.16 End Stocks 1.78 1.54 1.61 1.51 Note - Imports and exports do not balance due to differing marketing years and time lags between reported exports and imports. Cotton (Mln Bales) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 45.87 48.14 42.70 43.11 Production 69.53 69.66 78.94 78.92 Imports 23.07 23.07 21.49 21.45 Mill Use 80.72 77.08 76.84 74.79 Exports 23.37 23.50 20.25 20.28 End Stocks 34.16 39.99 45.87 48.14 Note - Imports and exports may not balance due to cotton in transit and reporting discrepancies in some countries. Rice (Milled Basis) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 24.71 24.75 22.16 22.16 Production 317.90 318.90 320.12 320.05 Imports 10.56 10.63 11.68 11.70 Dom. Use 321.41 321.87 317.58 317.46 Exports 12.11 12.22 12.49 12.39 End Stocks 21.19 21.78 24.71 24.75 Reuter 3; 19870409 XYVISION ISSUES CONVERTIBLE EUROBOND XYVision Inc is issuing a 25 mln dlr convertible eurobond due May 5, 2002 paying an indicated coupon of between 5-3/4 and six pct and priced at par, lead manager Credit Suisse First Boston Ltd said. The issue is callable after 30 days at 106 pct declining by one pct per annum to par thereafter. It is not callable for three years unless the conversion price exceeds the stock price by 130 pct. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. Final terms will be set on, or before, April 15. The issue is available in bearer and registered form in denominations of 5,000 dlrs. It will be listed in Luxembourg while the payment date is May 5. REUTER 3; 19870409 YEN SEEN RISING AFTER G-7 COMMUNIQUE The yen is likely to start another uneven rise against the dollar and other major currencies because the Group of Seven communique contained nothing new, currency and bond analysts here said. "Is that it? I was expecting something more than that," said one trader at a major Wall Street securities company. Marc Cohen of Republic National Bank of New York said: "The market now has the impetus to drive the dollar lower again." The dollar hovered between 145.50 and 147 yen in the days just before the talks. Dealers restrained their underlying bearishness and squared positions ahead of Wednesday's meeting of the finance ministers and central bankers of the top seven industrialized nations in Washington. After more than four hours of talks, the G-7 issued a communique which merely reaffirmed the recent Paris agreement's view that prevailing currency levels were broadly consistent with economic fundamentals and that exchange rate stability should be fostered around these levels. The dollar sank to 144.75 yen in early Tokyo trading. "They said that the dollar/yen rate was broadly in line with fundamentals when it was 154. Now they are saying it's in line when it's at 146. Will this still be so at 138 or 130?," asked Republic's Cohen. Japanese Finance Minister Kiichi Miyazawa fuelled speculation about the amount of fluctuation the authorities are prepared to tolerate by saying that the current yen level is still inside the range agreed on in Paris in late February. Official statements in recent weeks had indicated that the key psychological level of 150 yen was at the lower end of the authorities' permissible range. Dealers and analysts warned that the dollar's decline would probably be uneven. They anticipated a concerted effort to prop up the dollar and restrain the yen via a mixture of open market intervention and public comments. Shortly after the Tokyo market opened today the Bank of Japan was detected by local dealers buying moderate amounts of dollars. The dollar rebounded to about 145.20 yen. The sources said the market may also be wary of agressively selling dollars for yen before Tuesday's February U.S. Trade data. The figures are expected to show a deficit of 13 billion dlrs, from a provisional 14.8 billion in January. 3; 19870409 YUGOSLAVIA TO TENDER FOR 100,000 TONNES WHEAT Yugoslavia will tender April 14 for 100,000 tonnes of wheat, the U.S. Agriculture Department's Counselor in Belgrade said in a field report. The report, dated April 7, said the wheat must be from 1986 and 1987 harvest, and imports of soft wheat from Europe and from other suppliers will not be considered. It said the imports will be used to rebuild the federal reserves and as a result will not be subject to import surcharges. Reuter 3; 19870411 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. REUTER 3; 19870411 DRY SPELL IN PHILIPPINES DAMAGES AGRICULTURE CROPS A prolonged dry spell has damaged 111,350 hectares of rice and corn plantations in 10 provinces in the central and southern Philippines, agriculture officials said. They said some 71,070 tonnes of agricultural produce estimated at about 250 mln pesos was lost to the lack of rainfall. They warned of a severe drought if the prevailing conditions continued until next month. Agriculture Secretary Carlos Dominguez said he hoped the losses would be offset by the expected increase in output in other, normally more productive areas not affected by the dry spell. Affected were 14,030 hectares of palay (unmilled rice), representing a production loss of 22,250 tonnes valued at 77.8 mln pesos, Department of Agriculture reports said. About 48,820 tonnes of corn from 97,320 hectares valued at 170.8 mln pesos have also been lost, they said. Officials said the hectarage planted to palay that has been hit by the drought accounted for only one pct of national total thus the damage is considered negligible. In the case of corn, they said the loss can be filled by production from non-traditional corn farms which diversified into the cash crop from sugar two years ago. The Philippine Coconut Authority said coconut production in the major producing region of Bicol might drop by 25 pct to 320,000 tonnes if the dry spell continued. There were no reports of actual damage. REUTER 3; 19870411 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. REUTER 3; 19870411 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 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. REUTER 3; 19870411 SMUGGLING BLAMED FOR CLOSURE OF HAITIAN SUGAR FIRM A sugar mill which was this nation's second largest employer closed its doors yesterday, saying it had been run out of business by sugar smuggled from Miami and the neighbouring Dominican Republic. The closure of the Haitian American Sugar Company (HASCO) will idle 3,500 employees and affect as many as 30,000 to 40,000 small sugar cane planters in regions around the capital, the company said. "Because of unprecedented and ever-growing smuggling, HASCO regrets ... It cannot continue to accept delivery of sugar cane after April 10," the mill warned planters earlier this week. Since President Jean-Claude Duvalier fled Haiti fourteen months ago, widescale smuggling of basic goods such as cooking oil, flour, rice, sugar and canned milk has lowered consumer prices but bankrupted several local manufacturers, throwing hundreds of thousands of Haitians out of work. At the HASCO compound, where grim-faced workers lined up to receive their last pay, Spokesman Georges D. Rigaud showed a warehouse stocked with an estimated 445,000 unsold 100-pound (45-kg) bags of sugar. "We are closing because of our huge stock of unsold sugar. We have no money left to continue operations," Rigaud said. He said the company owed 7.6 mln dlrs and had borrowed an additional 1.5 mln dlrs in order to pay off workers. Rigaud blamed the mill's problems on an order by Duvalier two years ago forbidding HASCO from refining sugar. He said the government then began importing refined sugar at world market prices and reselling it at a huge profit and the provisional military-civilian government that replaced Duvalier last year continued the policy. "But now with all the smuggling even the state can't compete with smuggled Dominican refined sugar," Rigaud said. HASCO workers earned 4.20 dlrs daily, considerably above the usual minimum wage of three dlrs. It is generally estimated that every employed Haitian supports at least six people. Rigaud said HASCO's closing at a minimum would affect 280,000 to 300,000 people. Laid-off workers were bitter about the closure. "We're dead, and it's the government that's causing us to die," declared Lucien Felix, 34, who has five dependents. REUTER 3; 19870411 SPANISH UNEMPLOYMENT FALLS SLIGHTLY IN MARCH Spain's registered unemployment fell by 10,465 people to 2.97 mln or 21.4 pct of the workforce in March, Labour Ministry figures show. Registered unemployment in February was 2.98 mln people, or 21.5 pct of the workforce. The figures were nonetheless higher than those for March 1986 -- 2.8 mln people and 21 pct of the workforce. REUTER 3; 19870411 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. REUTER 3; 19870411 UGANDA PULLS OUT OF COFFEE MARKET - TRADE SOURCES Uganda's Coffee Marketing Board (CMB) has stopped offering coffee on the international market because it is unhappy with current prices, coffee trade sources said. The board suspended offerings last week but because of its urgent need for cash it was not immediately clear how long it could sustain, the sources added. Hundreds of Ugandan coffee farmers and processors have been waiting several months for payment from the CMB, which has had trouble finding enough railway wagons to move the coffee to the Kenyan port of Mombasa. Foreign banks have contributed to the cash crisis by holding up remittance of Uganda's hard currency earnings from coffee exports, the government newspaper New Vision said. The banks are holding up to seven mln dlrs in coffee money and President Yoweri Museveni is thinking of imposing a penalty for such delays, it added. Banking sources said a third factor in the crisis was that commercial banks have lent the board only 77 billion shillings -- the equivalent of 55 mln dlrs -- for crop finance in the current coffee year, while the government had asked for 100 billion. The CMB has 455,000 60-kg bags of coffee, about 15 pct of annual production, stockpiled in Kampala awaiting shipment. The crop accounts for over 90 pct of Uganda's export earnings and the recent slide in prices to four-year lows is likely to more than offset an expected increase in production. CMB officials have forecast that because the government has restored law and order in important growing areas, Uganda will produce over three mln bags of coffee in the year ending September 30, about 25 pct more than in 1985/6. REUTER 3; 19870411 W.GERMAN COCOA GRIND UP 2.9 PCT IN FIRST QUARTER The West German cocoa grind rose 2.9 pct to 55,190 tonnes in the first quarter of 1987 from 53,643 tonnes in the same quarter of of 1986, the Bonn-based Confectionery Industry Association said in a statement. REUTER TAW 3; 19870411 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. REUTER 3; 19870413 BANK OF ENGLAND TO MONITOR WHEN-ISSUED TRADING The Bank of England will step up reporting requirements for primary dealers in U.K. Government gilts during the when-issued trading period in between the date an auction is announced and the date the sale is actually held. In its document on the auctions, the Bank said "The Bank is content for such (when-issued) trading to cevelop subject to certain conditions, in particular for predential supervision of the credit risk to which the gilt-edged market makers and Inter-dealer brokers may become exposed." The Bank is widely expected to require dealers to report wehn-issued trading positions on a daily basis. When-issued trading presents certain unusual risks because dealers are buying and selling a security that technically does not exist although there is no uncertainty about when it will be issued. Still, the fact there is no physical delivery possible presents certain credit risks as well. The Bank is widely expected to expand its reporting requiremenmts for unsettled trades, requiring firms to report unsettled when-issued trades one day after they occur. Normally, unsettled trades must be reported three days after they occur. REUTER 3; 19870413 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. Reuter 3; 19870413 BOSTON FIVE <BFCS.O>, NEWORLD 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. Reuter 3; 19870413 PRIMARY GILTS DEALERS NEED NOT BUY AT AUCTIONS Primary dealers in U.K. Government gilts will not be required to underwrite the government's offering of its securities when the first auctions begin in Mid-May, the Bank of England said. In an official notice released today, the Bank said "There will be no formal or informal underwriting arrangement for the auctions but the Bank encourages all gilt-edged market makers, as part of their commitment to the market, to participate actively in the auction process." The Bank was originally believed to have favoured requiring the dealers to underwrite auctions, which are patterned after those in the U.S. Treasury market. However, the Treasury was believed to have baulked at the request by the 27 market makers for an allotment commission which would discourage the largest institutional investors from placing orders for new stock directly through the Bank of England, thus denying primary dealers some of their best customers. Commission would have been passed along to customers who did place orders via the primary dealers, making it less expensive to buy through them than to go directly to the Bank. Market sources said the Bank had, in its discussions with the dealers about the upcoming auctions, agreed that the allotment commission was reasonable if the dealers had a concurrent commitment to buy at the auction regardless of market conditions. Indeed, the Bank and the gilts dealers are believed to be disappointed that the Treasury has not agreed to go along with the plan. However, in its paper, the Bank suggested that any conditions applied for the first few auctions may be abandoned or modified in future sales of gilts if they prove inefficient or unwieldy. Among other items in the document, the Bank said its first auction will consist of up to 1.25 billion stg in conventional short-dated stock and have a maturity of seven years or less. Subsequent auctions to be held in the 1987-88 financial year would first be of up to one billion stg of long-dated stock having a maturity of 15 years or longer and then of up to one billion stg of medium dated stock of seven to 15 years in maturity. The remainder of the gilt-edged funding program would be met by traditional tap offerings of stock via the government broker. To protect the buyers of the newly auctioned stock, the Bank has agreed to establish a so-called fallow period, a 28-day period during which it agrees not to issue any new stock of the same type, and it will not necessarily resume selling the stock once the fallow period expires. In the event that prices offered for the stock to be sold are substantially out of line with market conditions, the Bank will agree to take the stock onto its own books. The bank would then be free to sell the stock during the fallow period but not at a price below the minimum tender price. The Bank also said that at least initially, auctions will be alloted on a bid price basis, a system under which bidders are allotted stock at the price which they bid. However, the Bank said it reserves the right to limit any money market maker from buying more than 25 pct of a single auction. The Bank is widely believed to be concerned about preventing a single market maker from cornering a stock to drive the price up. The Bank has repeatedly signalled its intention to prevent dealers from cornering the market in a stock, issuing additional stock, on occasion, to end a market shortage. The Bank has also agreed to publish information about the auction results as soon as possible after the sale is complete, which is widely expected to be on the same day. Information to be released will include the amount of stock allotted in terms of both competitive and non-competitive bids, and the highest, lowest and average price of the successful bids. REUTER 3; 19870413 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. REUTER 3; 19870413 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. REUTER 3; 19870413 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. REUTER 3; 19870413 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. REUTER 3; 19870601 (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. Reuter 3; 19870601 <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. Reuter 3; 19870601 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 Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 BAKER HUGHES' <BHI> U.S. RIG COUNT FALLS TO 758 The U.S. drilling rig count fell by four last week to a total of 758, against 723 working rigs at this time last year, Baker Hughes Inc said. In Canada, the weekly rig count rose 19 to 100, compared to 46 working rigs last year. Among individual states, the steepest declines were in Oklahoma and Louisiana which lost eight and seven, respectively. Drilling increases were reported by Michigan, up by five rigs, and Ohio and Pennsylvania which each rose by three. Baker Hughes said the total of 758 working rigs in the United States included 84 rigs working in offshore waters. Reuter 3; 19870601 BARLEY SOLD TO SAUDI ARABIA - USDA Private exporters reported sales of 150,000 tonnes of barley to Saudi Arabia for delivery in the 1987/88 season, the U.S. Agriculture Deapartment said. The 1987/88 season for barley begins today. Reuter 3; 19870601 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. Reuter 3; 19870601 BOEING <BA> TO ACQUIRE DEFENSE ELECTRONICS FIRM Boeing Co and ARGOSystems Inc 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. Reuter 3; 19870601 BORDEN <BN> TO ACQUIRE MAJOR PASTA MAKER Borden Inc said it is acquiring and three companies producing grocery products for 180 mln dlrs. Borden said the four companies are expected to have 1987 sales totaling 230 mln dlrs. It said Prince, a Lowell, Mass., producer of pasta and Italian food sauces, is expected to account for 210 mln dlrs of this total. This year's sales of Borden pasta -- by the 13 regional brands and the premium Creamette brand distributed on a nearly national basis -- are expected to toal 285 mln dlrs, it said. Borden said the other three companies being acquired are Steero Bouillon of Jersey City, N.J., Blue Channel Inc, a Beaufort, S.C., producer of canned crabmeat, and the canned shrimp products line of DeJean Packing Inc of Biloxi, Miss. Borden also said the divestment of three operations with about 50 mln dlrs a year in sales is expected to produce nearly 45 mln dlrs in cash for use toward the purchase of new businesses. It said the sale of Polyco of Cincinnati, Ohio, which makes polyvinyl acetate emulsions, to Rohm and Haas Co was announced by the buyer last month. Borden said the divestment of two producers of toy models and hobby items -- Heller in France and Humbrol in England -- is in process. Reuter 3; 19870601 BRAZIL NOT SELLING TO COCOA BUFFER STOCK - TRADE Brazil is not selling cocoa beans to the International Cocoa Organization, ICCO, buffer stock, as spot prices for beans in the interior area are 20 to 25 pct higher than levels which would be paid by the ICCO buffer stock manager, trade sources in the major producing state Bahia said. The scarcity of beans because of the effects of drought on the current temporao harvest has pushed prices well above international levels, the sources noted. The only buyers are bean exporters or local processors covering previously contracted commitments, they added. If sales were made they would be executed by individual exporting companies which are members of the Brazilian Cocoa Trade Commission, they said. Reuter 3; 19870601 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. REUTER 3; 19870601 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 , 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 . 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. Reuter 3; 19870601 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 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. Reuter 3; 19870601 CHINA PROVINCE BECOMES GRAIN IMPORTER The south China province of Guangdong is importing millions of tonnes of grain a year from overseas and other parts of China because farmers have switched from grain to more profitable crops, the Peking Review magazine said. The official magazine said the province's grain area fell to 4.33 mln hectares in 1985 from 5.7 mln in 1978 out of a total farmland area of 7.4 mln hectares. Farmers have switched to cash crops such as sugarcane, bananas, oranges, papaya and freshwater fish-farming, in part to supply major consumer markets in Hong Kong and Macao, the magazine said. It gave no 1986 area figures. The magazine said China aims to keep 80 pct of national farmland under grain, 10 pct under cash crops and 10 pct under other crops, although the ratio will vary from place to place. It said primitive cultivation methods, labour-intensity and low productivity make grain the least profitable farm commodity. Farmers in one central region of China can from 0.1 hectare earn 2,250 yuan a year from vegetables, 375-450 yuan from cotton or 225 yuan from grain, it added. It said consumer prices for foodgrain can be adjusted only gradually as part of a reform of the entire pricing system. REUTER 3; 19870601 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 . 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. Reuter 3; 19870601 COCOA ORIGINS DISMAYED BY BUFFER STOCK ACTION Traders recently returned from West Africa say some producers there are dismayed by the ineffective action so far by the International Cocoa Organization (ICCO) buffer stock manager on buffer stock purchases. One trader said some West African producers are annoyed the Buffer Stock manager is not playing his part as required by the International Cocoa Pact to stabilise prices from current lows. So far, only 21,000 tonnes of second hand cocoa have been taken up for buffer stock purposes and this, traders noted, only on an intermittent basis. They noted the purchases, of 8,000 tonnes in the first week he bought and 13,000 in the second, are well short of the limitations of no more than 5,000 tonnes in one day and 20,000 in one week which the cocoa agreement places on him. The traders recently returned from West Africa say producers there are unhappy about the impact on cocoa prices so far, noting producing countries are part of the international cocoa pact and deserve the same treatment as consumers. London traders say terminal market prices would have to gain around 300 stg a tonne to take the ICCO 10-day average indicator to its 1,935 sdr per tonne midway point (or reference price). However, little progress has been made in that direction, and the 10-day average is still well below the 1,600 sdr lower intervention level at 1,562.87 from 1,569.46 previously. The buffer stock manager may announce today he will be making purchases tomorrow, although under the rules of the agreement such action is not automatic, traders said. Complaints about the inaction of the buffer stock manager are not confined to West African producers, they observed. A Reuter report from Rotterdam quoted industry sources there saying Dutch cocoa processors also are unhappy with the intermittent buffer stock buying activities. In London, traders expressed surprise that no more than 21,000 tonnes cocoa has been bought so far against total potential purchases under the new agreement of 150,000 tonnes. Carryover holdings from the previous International Cocoa Agreement in the stock total 100,000 tonnes. Terminal prices today rose by up to 10 stg a tonne from Friday's close, basis July at its high of 1,271. It seems that when the buffer stock manager is absent from the market, prices go up, while when he declares his intention to buy, quite often the reverse applies, traders said. Reuter 3; 19870601 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. Reuter 3; 19870601 COMINCO <CLT.TO> SEES MEETING WITH STRIKING UNION LOCALS Cominco Ltd said it expects to meet today with two of five United Steelworkers of America locals on strike at its Trail smelter and Kimberley, B.C. lead-zinc mine, a Cominco spokesman said. It had no meeting scheduled with the other three striking locals, which rejected a tentative three-year contract Saturday, Cominco spokesman Richard Fish said. Fish said the pact that was rejected contained a cost of living increase tied to the Canadian consumer price index, but no wage increase. With 81 pct of the membership voting, 54.5 pct voted no and 45.5 pct voted yes, the union said. The three locals represent about 2,600 production and maintenance workers, while the remaining two locals cover about 600 office and technical workers. The office and technical workers last negotiated May 21. Production at Trail and Kimberley has been shut down since the strike began May 9 and Cominco has had to declare force majeure, which means the company may be unable to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Trail smelter revenue was 356 mln Canadian dlrs in 1986. Reuter 3; 19870601 COMINCO <CLT.TO> UNION REJECTS CONTRACT Three United Steelworkers of America locals on strike at Cominco Ltd rejected a tentative three-year contract, a union representative said. "The vote was 1,229, or 54.5 pct, against, and 1,028, or 45.5 pct, for the contract. Eighty-one pct of the membership voted," he said. The union representative said that the pact offered cost of living increases designed to keep pace with inflation, but contained no wage increase. The locals' bargaining committees are expected to meet and prepare for the reopening of negotiations with Cominco, he said. The three locals cover about 2,600 production and maintenance workers at Cominco's Trail smelter and Kimberley, B.C. lead-zinc mine. Output at both sites has been shut down since the production and maintenance workers, along with about 600 office and technical workers, went on strike May nine. The two Steelworkers locals representing the office and technical workers have not negotiated since May 21. The strike caused Cominco to declare force majeire, which means the company may not be able to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The union had requested a three pct wage increase in each year of a two-year contract. Cominco had pressed for a three-year contract and some loosening of the rules on job classifications. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Revenues from the Trail smelter totalled 356 mln Canadian dlrs in 1986. Reuter 3; 19870601 COMINCO LEAD/ZINC UNION REJECTS CONTRACT Three United Steelworkers of America locals on strike at Cominco Ltd rejected a tentative three-year contract, a union representative said. "The vote was 1,229, or 54.5 pct, against, and 1,028, or 45.5 pct, for the contract. Eighty-one pct of the membership voted," he said. The union representative said that the pact offered cost of living increases designed to keep pace with inflation, but contained no wage increase. The locals' bargaining committees are expected to meet and prepare for the reopening of negotiations with Cominco, he said. The three locals cover about 2,600 production and maintenance workers at Cominco's Trail smelter and Kimberley, B.C. lead-zinc mine. Output at both sites has been shut down since the production and maintenance workers, along with about 600 office and technical workers, went on strike May 9. The two Steelworkers locals representing the office and technical workers have not negotiated since May 21. The strike caused Cominco to declare force majeure, which means the company may not be able to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The union had requested a three pct wage increase in each year of a two-year contract. Cominco had pressed for a three-year contract and some loosening of the rules on job classifications. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Revenues from the Trail smelter totalled 356 mln Canadian dlrs in 1986. Reuter 3; 19870601 COMINCO SEEKS MEETING WITH STRIKING UNION LOCALS Cominco Ltd said it expects to meet today with two of five United Steelworkers of America locals on strike at its Trail smelter and Kimberley, B.C. lead-zinc mine, a Cominco spokesman said. It had no meeting scheduled with the other three striking locals, which rejected a tentative three-year contract Saturday, Cominco spokesman Richard Fish said. Fish said the pact that was rejected contained a cost of living increase tied to the Canadian consumer price index, but no wage increase. With 81 pct of the membership voting, 54.5 pct voted no and 45.5 pct voted yes, the union said. The three locals represent about 2,600 production and maintenance workers, while the remaining two locals cover about 600 office and technical workers. The office and technical workers last negotiated May 21. Production at Trail and Kimberley has been shut down since the strike began May 9 and Cominco has had to declare force majeure, which means the company may be unable to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Trail smelter revenue was 356 mln Canadian dlrs in 1986. Reuter 3; 19870601 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. Reuter 3; 19870601 COMPUTER ASSOC. <CA> BOLSTERS HAND AGAINST IBM Computer Associates International Inc's 800 mln dlr merger with Uccel Corp will eliminate its strongest rival, but the company still faces stiff competition from International Business Machines Corp , 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 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 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. Reuter 3; 19870601 COMPUTER ASSOCIATES <CA>, UCCEL SET MERGER Computer Associates International Inc and UCCEL Corp 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 DEKALB <DKLBB.O> SELLS HEINOLD HOG MARKET Dekalb Corp said it sold its Heinold Hog Market Inc to the unit's employees through an Employee Stock Ownership Plan (ESOP). Terms were not disclosed, but president Bruce Bickner said the sale will have a positive, but not substantial, impact on DeKalb as a whole. The company said the hog marketing unit did not fit with its strategy of investing in its core businesses. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 DUTCH COCOA PROCESSORS UNHAPPY WITH ICCO BUFFER Dutch cocoa processors are unhappy with the intermittent buying activities of the International Cocoa Organization's buffer stock manager, industry sources told Reuters. "The way he is operating at the moment is doing almost nothing to support the market. In fact he could be said to be actively depressing it," one company spokesman said. Including the 3,000 tonnes he acquired on Friday, the total amount of cocoa bought by the buffer stock manager since he recently began support operations totals 21,000 tonnes. Despite this buying, the price of cocoa is well under the 1,600 Special Drawing Rights, SDRs, a tonne level below which the bsm is obliged to buy cocoa off the market. "Even before he started operations, traders estimated the manager would need to buy at least up to his 75,000 tonnes maximum before prices moved up to or above the 1,600 SDR level, and yet he appears reluctant to do so," one manufacturer said. "We all hoped the manager would move into the market to buy up to 75,000 tonnes in a fairly short period, and then simply step back," he added. "The way the manager is only nibbling at the edge of the market at the moment is actually depressing sentiment and the market because everyone is holding back from both buying and selling waiting to see what the manager will do next," one processor said. "As long as his buying tactics remain the same the market is likely to stay in the doldrums, and I see no indication he is about to alter his methods," he added. Processors and chocolate manufacturers said consumer prices for cocoa products were unlikely to be affected by buffer stock buying for some time to come. Reuter 3; 19870601 DUTCH OFFICIAL RATE CUT SEEN STILL LIKELY A cut of about half a percentage point in Dutch official interest rates is still in prospect, although economists said the timing would depend on Bundesbank moves. Speculation has been rife that the Dutch Central Bank, encouraged by a strong guilder/mark relationship and wide premiums for Dutch money and capital market rates over German, might lower rates without the Bundesbank moving first. Last month, the Central Bank lowered its special advances rate to 5.1 pct from 5.25 pct after the Bundesbank dropped its repurchase tender rate to 3.55 pct from 3.8 pct. That rate has remained in force, just holding above the five pct official secured loans rate which governs commercial bank borrowings. Given a strong guilder, a further fall in the West German repo rate would trigger a lower special advances tariff, forcing an official Dutch rate cut, analysts said. In February, when the Bundesbank cut its discount rate to three pct from 3.5 pct, the Central Bank only lowered money market rates and removed a surcharge over the secured loans rate on lending under its three month credit quota. Since then, however, both the Central Bank and Finance Ministry have made it clear they favour lower official rates. In April, Central Bank President Wim Duisenberg said he would follow any Bundesbank cut, and last week the Finance Ministry expressed satisfaction when it raised 2.25 billion guilders with a six pct coupon state loan priced at 100.10 pct for an effective yield of 5.98 pct, the lowest since 1965. Technically, analysts said, there has to be a difference between the secured loans rate which applies to lending under the credit quota, and the tariff on special advances which add extra liquidity to the money market. Bank economists and dealers said a West German move to further lower the rate on securities repurchase pacts would result in the Central Bank easing the special advance rate, provided the guilder/mark relationship permitted. The Central Bank aims to keep the guilder stable around its parity value within the European Monetary System of 112.673 guilders per 100 marks. Today, foreign exchange buying pushed the mark up 10 guilder cents to 112.705 guilders per 100 at the fix, a level that would not permit a change in the interest rate differential between West Germany and the Netherlands, dealers said. An economist at ABN Bank said he expected West German and Dutch interest rates to ease in the short term. However, he said new wage agreements in West Germany had raised inflation expectations which would put upward pressure on interest rates in the longer term. In the Netherlands, the inflation outlook for 1987 is nil, or even negative, while the latest official economic forecasts point to a falling rate of economic growth. "It will depend on the outcome of collective wage agreement negotiations here whether there could be cost push inflation," the ABN economist said. He said Dutch money supply growth, which ran at 3.4 pct in January, could also contribute to some inflation. At Amro Bank, a leading analyst said inflation could run to two pct next year. The bank expects Dutch capital market rates, currently averaging around 6.1 pct, to stop easing in the second half of this year and stabilize around 5.6 pct. Analysts said an official rate cut could trigger a buying spree on the bond market which would bring yields down, probably only temporarily, while money rates could fall below five pct. Currently, all periods are traded at 5.12 to 5.25 pct in the money market. REUTER 3; 19870601 EC MINISTERS CONSIDER CUTBACKS IN STEEL SUPPORT A new steel quota system that would strictly limit European Community (EC) support to the industry could be forced on producers if they fail to find their own solution quickly, officials said. EC industry ministers meeting here considered two key proposals aimed at cutting back surplus capacity by 30 mln tonnes by 1990. The first would limit the current quota system, which has protected EC output for seven years, only to flat products and heavy sections, thereby forcing other types of steel products into free market competition. The second proposal would link continuation of a quota system with progress toward plant closures, although less than a month ago the EC steelmakers' lobby group Eurofer said they had abandoned efforts to close plants voluntarily. The ministers stopped short of imposing their own solution immediately, instead urging steel producers to try again to reach agreement on voluntary cutbacks. The EC Commission has said it will come up with detailed proposals in July on the future of the EC steel industry and EC industry ministers meet again in September to reach a final decision. Reuter 3; 19870601 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. Reuter 3; 19870601 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 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. Reuter 3; 19870601 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 , currently the subject of a 3.80 dlrs a share bid by CSR Ltd . 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 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 , 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. REUTER 3; 19870601 ESSO RAISES SINGAPORE PETROL PUMP PRICES Esso Singapore Pte Ltd said it raised pump prices of petrol from today. New prices for 0.15 gm lead grades are 97.0 cents/litre for 97 octane and 90.8 cents for 95 octane. Other Singapore oil companies announced yesterday that they would revise their pump prices effective today. Shell Eastern Petroleum Pte Ltd, Mobil Oil Singapore Pte Ltd, Caltex Asia Ltd, Singapore Petroleum Co Pte Ltd and BP Singapore Pte Ltd are pricing 97 octane at 96.8 cents. Shell, Mobil and Caltex are pricing 92 octane at 90.2 cents, and SPC and BP at 90.6 cents. REUTER 3; 19870601 FED EXPECTED TO SET CUSTOMER REPURCHASES The Federal Reserve is expected to add reserves to the U.S. banking system by arranging a round of customer repurchase agreements during this morning's intervention period, several economists said. Some others, however, judged that the Fed has almost completed its reserve-adding requirement for the statement period ending on Wednesday and will not need to operate today. Fed funds were trading at 6-11/16 pct, compared with Friday's average of 6.63 pct. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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 , and 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. Reuter 3; 19870601 FRENCH SAY WHEAT STOCKS FORECAST NO SURPRISE The U.S. Department of Agriculture's forecast that French end-of-season soft wheat stocks will almost double in 1987/88 is premature but would not be surprising, according to French cereal organisation officials. The Cereals Intervention Board, ONIC, Wheat Producers' Association and the National Union of Agricultural and Cereal Cooperatives have not yet forecast 1987/88 exports or end-of-season stocks. However, the officials said the USDA's figure of end 1987/88 stocks at 5.03 mln tonnes against 1986/87's 2.87 mln was not surprising given a record high yield forecast in April. The French Feed Cereals Research Institute, ITCF, forecast in mid-April an average yield of 6.58 tonnes per hectare for soft wheat in 1987/88 compared with 5.6 tonnes in 1986/87 and the record high yield of 6.5/6.6 tonnes in 1984. This would result in a French soft wheat harvest of around 31 mln tonnes against 25.5 mln in 1986/87, given a Ministry of Agriculture estimate of area planted of 4.66 mln hectares against 4.61 mln in 1986/87. ONIC's first preliminary forecast of the 1987/88 campaign will be released at the beginning of September, an ONIC official said. Soft wheat exports in 1987/88 were extremely difficult to estimate at this stage, both within the European Community and to non-EC countries, an ONIC official said. He said, however, that among countries to which France could increase its wheat exports were Egypt and the Maghreb countries (Morocco, Algeria and Tunisia), he said. The USDA's forecast of an 11.65 mln tonne maize crop in 1987/88 against 11.48 mln in 1986/87, while again premature, was not out of line with estimates of the French Maize Producers Association, AGPM, an AGPM official said. Maize plantings would be down in 1987/88 but yields were expected to be higher, the AGPM official said. It estimated 1987/88 maize plantings of 1.73 mln hectares, down seven pct from the 1.87 mln hectares planted in 1986/87. Reuter 3; 19870601 GAS CARRIER ESCAPED GULF ATTACK LAST WEEK - LLOYDS The Panamanian liquified gas carrier Nyhammer, 48,772 dwt, was attacked by an Iranian gunboat on May 24, Lloyds Shipping Intelligence said. One rocket was fired but missed. The vessel subsequently arrived at its destination of Ras Tanura on May 25 and left this morning. REUTER 3; 19870601 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 Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 IDA EXTENDS 37.1 MLN DLRS IN AFRICA LOANS The World Bank said it will provide 37.1 mln dlrs to Tanzania and Rwanda through the International Development Association (IDA), the bank's concessionary lending affiliate. Tanzania will recieve a 23 mln dlr IDA loan to help rehabilitate its telecommunications network, the bank said. The 14.1 mln dlr IDA loan to Rwanda will help finance tropical forest conservation projects and a reforestation program, the bank said. The IDA credit is for 50 years, including 10 years of grace, and carries no interest, the bank said. Reuter 3; 19870601 INDIA PLANS MORE BOMBAY OFFSHORE OIL WELLS India's state-owned Oil and Natural Gas Commission (ONGC) plans to drill more wells in the Bombay offshore area, where a well spudded in February this year gave both oil and gas, an ONGC spokesman said. The exploratory well, spudded at a depth of 2,140 metres, yielded 2,000 barrels of oil and 180,000 cubic metres of gas per day, he said. "The well, one of the four structures drilled in the area 80 km north-west of Bombay, indicates good prospects of both oil and gas. We've decided to drill at least three more wells in there before starting production on a commercial scale." Production of Bombay High, part of the Bombay offshore field, has stabilised at around 500,000 barrels per day for the last two years. ONGC produced 27.85 mln tonnes of crude in 1986/87 ending March, up from 27.51 the previous year. Bombay High accounted for 20.61 mln tonnes, marginally up from 20.10 the year before. India's total oil output is around 30 mln tonnes. ONGC has been exploring the Bombay offshore area, developed since the late 1970s, for more oil as production from Bombay High has reached a plateau. REUTER 3; 19870601 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. reuter 3; 19870601 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 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 and Tandy Corp's 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. Reuter 3; 19870601 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. REUTER 3; 19870601 JAPAN EXTENDS 24 BILLION YEN LOAN TO BANGLADESH Japan has extended a 24 billion yen loan to Bangladesh, Finance Ministry officials said. The loan, to be disbursed over two years from next July, is for chemicals, cement, steel and machinery imports and for setting up a power plant in eastern Sylhet district, they said. Terms were not disclosed. The credit brings total Japanese loans and grants to Bangladesh to 441.25 billion yen since 1972, they said. REUTER 3; 19870601 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. Reuter 3; 19870601 LATIN DEBTORS MAKE NEW PUSH FOR DEBT RELIEF Rising interest rates and protectionist trade policies had prompted a new push by Latin American nations to win debt relief, regional foreign and finance ministry officials said here. Officials of the Cartagena group of 11 debtor nations met here this week to draw up new proposals in reaction to what they called a deteriorating world panorama, and Citicorp's decision to create reserves against third world loans. (SEE ECRA FOR SPOTLIGHT HEADLINES) "We are looking at trade, interest rates and financial flows.....In order to put forward a basis for some permanent solutions," Mexico's public credit director Angel Gurria said. Recent developments have led to moves for a summit of Latin American presidents and debate on new solutions. Ideas include schemes to link debt payments to trade, and proposals for stable interest rates. The latter was proposed in a letter this week from Cartagena to G-7 leaders who are due to attend a summit in Venice this month. Another idea is to include debt under Gatt negotiations, but Cartegena ministers have yet to endorse any proposals. Speaking earlier in New York, Uruguay's Foreign Minister and Cartagena group chairman Enrique Iglesias said Citicorp's decision could discourage new lending. But it might help Cartagena's bid to have old and new debt treated separately. The Cartagena group, which has not met at ministerial level for over a year, wants to repay debt contracted before the debt crisis at the low interest rates prevailing in the 1970s. It would pay new loans at current market rates. "Many countries fear that what they have gained in months of arduous debt negotiations they can lose at a stroke with a one point rise in interest rates," one official here said. "The new increase in interest rates has come precisely when we thought they had still not come down enough," Iglesias said. Latin American officials are also concerned that varying interest spreads granted to different debtor nations could generate discord, as with the Philippines' recent protest at being given less favourable terms than Argentina. There has been speculation Venezuela would demand a cut in its 7/8 pct spread, but public finances director Jorge Marcano said here there were no plans to renegotiate terms. This week's meeting came after three Latin American presidents meeting in Montevideo called for stable interest rates on the region's 380 billion dlr foreign debt. It was called to review developments since the last ministerial meeting in February 1986 and to think up new ideas. Since the last ministerial meeting there have been some advances, such as Mexico's growth-oriented 77 billion dlr loan and refinancing package agreed last September. But there have also been setbacks, like Brazil's payments moratorium. The loans expected in the Baker plan have not materialized and debtors have been forced to browbeat reluctant banks. "We have clearly stretched the restructuring process to its limits and and the question is now where do we go from here?" a senior Mexican foreign ministry official said. Existing debt strategy has been based on nursing debtor economies back to a position where they can again service their debts and qualify for new loans. But after five years of economic adjustment, Latin American debtors are currently unable to raise voluntary credits, with the exception of Colombia. Only Venezuela is paying back principal. Most countries have no prospect of paying their debts in the foreseeable future. Citicorp has made clear its decision to move three billion dlrs to reserves does not mean it is writing-off the loans. Latin American officials here said Citicorp's move would probably boost trading of discounted third world debt in the secondary market, implicitly downvaluing the amount owed. But they said it might make new lending even more remote. Discounted debt can be bought by foreign investors through debt-equity schemes that generate new resources for debtor economies. Chile and Mexico are currently front-runners in this field, but most Latin American officials see these schemes as limited and no panacea for the overall problem. Most Latin officials set greater store on building up export income than on debt-equity schemes. Exports hit 97.7 billion dlrs in 1984, cutting the region's debt service ratio to 36 pct, but they fell to 78.3 billion last year. So, even though interest rates had dropped the ratio hardly changed. The Cartagena group has called for the debt-trade link to be recognized before, but has not made detailed proposals. Officials said initiatives discussed here would be submitted to foreign and finance ministers of the 11 nations, before IMF and World Bank annual meetings later this year. REUTER 3; 19870601 LITTLE REACTION TO COMEX PRICE LIMIT REMOVAL The elimination of price limits on precious metals contracts trading at the Commodity Exchange in New York appears to be having little effect on the market, analysts said. "There is nothing apparent from the change," said William O'Neill, director of futures research at Elders Futures Inc. "The market has not approached the old price limits and trading is relative quiet, in narrow ranges," he added. Gold futures, which previously had a limit of 25 dlrs on market moves in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin conditions, traders said. On May 5, COMEX did away with price limits on the two contracts following spot after a volatile market in silver futures at the end of April caused severe disruptions. During the last week of April, silver futures traded up and down the price limit in the back months, causing traders to rush into the spot contract to offset those moves, analysts said. As a result, Elders' O'Neill said, there was much confusion, many unmatched trades, and large losses. The COMEX fined Elders Futures and three other large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. Silver futures were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. O'Neill said the elimination of price limits on all COMEX metals futures would add caution to trading since all contracts could move any distance. "This is amore realistic approach because the metals market is a 24 hours market and prices can move without limit," O'Neill said. Paul Cain, a vice president at Shearson Lehman Brothers, said the elimination of price limits will cut back on panic buying or selling and contribute to more orderly markets. Reuter 3; 19870601 LITTLE REACTION TO REMOVAL COMEX DAILY LIMITS The elimination of limits on daily price fluctuations for metals futures contracts traded on the Commodity Exchange, COMEX, appears to be having little effect on the market, analysts said. "There is nothing apparent from the change," said William O'Neill, director of futures research at Elders Futures Inc. "The market has not approached the old price limits and trading is relative quiet, in narrow ranges," he said. On May 5, COMEX eliminated price limits on the two contracts following each spot delivery in gold, silver, copper and aluminum futures after a review of its clearing operations, which were severely tested by a volatile market in silver futures at the end of April. COMEX announced Friday the lifting of all daily limits, effective today. Gold futures, which previously had a limit of 25 dlrs per ounce in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin volume conditions, traders said. Silver futures, previously limited at 50 cents in most back months, were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. During the last week of April, silver futures often traded at the daily allowable limit amid concerns about inflation, the dollar, and other factors. Traders rushed into the spot, or unlimited, contract to offset those moves, analysts said. As a result, O'Neill said, there was much confusion, many unmatched trades, and large losses for some traders. The COMEX fined four large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. Paul Cain, a vice president at Shearson Lehman Brothers, said the elimination of price limits will cut back on panic buying or selling and contribute to more orderly markets. O'Neill added that the elimination of daily limits would add caution to trading. "This is a more realistic approach because the metals market is a 24 hours market and prices can move without limit," O'Neill said. Reuter 3; 19870601 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 and Texaco Inc , 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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 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. Reuter 3; 19870601 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 . Reuter 3; 19870601 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 Reuter 3; 19870601 MOBIL RAISES SINGAPORE PETROL PUMP PRICES Mobil Oil Singapore Pte Lte will raise pump prices of petrol from June 2, a spokeswoman said. Grade 97 octane with 0.15 gm lead will be 96.8 cents/litre against 94 cents previously for 0.4 gm lead. Grade 92 octane will be 90.2 cents against 87.6 previously. SPC earlier announced its pump prices of 96.8 cents and 90.6 cents for 97 and 92 octane, respectively, for 0.15 gm lead petrol which is being sold in Singapore from today in line with the Ministry of Environment's regulations. REUTER 3; 19870601 MONSANTO <MTC> TO ACQUIRE RHONE-POULENC ASSETS Monsanto Co said it is acquiring certain commerical assets of polyphenyl business. Terms of the transaction were not disclosed. Among the assets being acquired are its polyphenyl business worldwide, including biphenyl and the heat transfer fluid Gilotherm TH, together with associated manufacturing and application technology, Monsanto said. Reuter 3; 19870601 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. REUTER 3; 19870601 NORTHGATE <NGX> QUEBEC WORKERS END STRIKE Northgate Exploration Ltd said hourly-paid workers at its two Chibougamau, Quebec, mines voted on the weekend to accept a three-year contract offer and returned to work today after a one-month strike. It said the workers, represented by United Steelworkers of America, would receive a 1.21-dlr-an-hour pay raise over the life of the new contract and improved benefits. Northgate, which produced 23,400 ounces of gold in first quarter, said that while the strike slowed production, "We are still looking forward to a very satisfactory performance." The Chibougamau mines produced 81,500 ounces of gold last year. Reuter 3; 19870601 NORTHGATE QUEBEC GOLD WORKERS END STRIKE Northgate Exploration Ltd said hourly-paid workers at its two Chibougamau, Quebec mines voted on the weekend to accept a new three-year contract offer and returned to work today after a one-month strike. It said the workers, represented by United Steelworkers of America, would receive a 1.21 dlr an hour pay raise over the life of the new contract and improved benefits. Northgate, which produced 23,400 ounces of gold in first quarter, said that while the strike slowed production, "We are still looking forward to a very satisfactory performance." The Chibougamau mines produced 81,500 ounces of gold last year. Reuter 3; 19870601 NPPC APPEAL ON CANADIAN PORK DISMISSED The U.S. Court of International Trade has upheld the International Trade Commission's refusal to extend countervailing duties on Canadian hogs to include pork products, the National Pork Producers' Council said. The court's ruling came in an appeal to the Trade Commission's decision filed by the Pork Producers' Council. Council president Tom Miller said he was disappointed by the court ruling and said the council will accelerate activities in support of an amendment to the 1930 Tariff Act that would address the objections outlined in the Trade Commission's ruling. The Commission had said there was insufficient economic integration between the pork production industry and the pork packing industry to justify extending the duty on live hogs to fresh, chilled or frozen pork. The legislation has already passed the House of Representatives and recently passed the Senate Finance Committee. It is expected to be considered by the full Senate by the end of the summer. An appeal by the Canadian Pork Council that the current countervailing duty on Canadian hogs entering the U.S. be lifted is pending before the Court. Reuter 3; 19870601 OKLAHOMA CLEANING UP AFTER WEEK OF FLOODS, RAINS Residents of central Oklahoma returned to their homes over the weekend after a week of heavy rains and severe flooding that left two dead and caused more than 20 mln dlrs in damage, officials said. Some 900 people were evacuated from their homes during the rains and flooding last week, civil defense officials said. Many of the shelters set up throughout the state in areas threatened by flooding, except those near the Washita and Red Rivers, closed as residents returned to their damaged homes. Farmers who had expected a near-record wheat crop now say this year will see one of the largest losses in decades. Gov. Henry Bellmon, who on Thursday declared a flooding emergency for central Oklahoma, was expected to ask President Reagan for federal disaster relief for the area. In northern Texas, officials reported several tornadoes on Friday. A twister in Lubbock yesterday damaged six mobile homes and two houses. No injuries were reported. Reuter 3; 19870601 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. Reuter 3; 19870601 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." REUTER 3; 19870601 PHARMACONTROL <PHAR.O> ACQUIRES REVCO UNIT PharmaControl Corp said it acquired Private Formulations Inc from 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. Reuter 3; 19870601 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. Reuter 3; 19870601 PHILIPPINE COCONUT CHIEF TO LOBBY AGAINST EC TAX Philippine Coconut Authority (PCA) chairman Jose Romero said he would visit Brussels later this month to lobby against a proposed 100 pct European Community (EC) levy on vegetable oil imports. "I intend to visit Brussels and talk to whoever is putting up this devilish scheme to impoverish third world countries like the Philippines," Romero said in an interview. He said he did not know how much support the levy had within the EC but he said he believed those originally opposed to the tax were under pressure to change their position. Romero said a group of EC members led by West Germany, the Netherlands, Denmark and Norway were opposed to the tax. But there was a danger some of them would be persuaded to change sides, and if that happened opposition could crumble. Romero said another threat to exports lay in an EC warning that copra meal cake used in livestock feeds contained dangerous levels of aflatoxin, a carcinogenic chemical. He said the EC standard of 0.02 parts of aflatoxin per million parts of meal, which EC countries had been asked to apply by October 1988, was too rigid. He said Philippine copra cake contained much higher levels of aflatoxin. Aflatoxin comes from moulds which develop in copra when it is not properly dried or ground. Romero said he would tell big buyers of copra meal in London that the Philippines was doing its best to meet EC standards. It was also trying to eliminate aflatoxin totally, but this was likely to take several years of research. Copra meal exports were 817,641 tonnes or 35 pct of total coconut exports in 1986. The meal was worth 73.5 mln dlrs. Romero said he would also visit Oxford University's department of agricultural economics to discuss ways of avoiding the copra process altogether. "There are ways of producing coconut products outside of copra," Romero said. "We can process fresh coconut without drying the meat in the sun. Through the wet process we can process coconuts into other food or non-food products, or we can go to the chemical root." He said there was a tendency for agricultural countries to become more protectionist and he expected export prices of coconut products to drop. "In the long term we will be getting less and less for more and more production, and I'm not comfortable with that," he said. With countries like Indonesia and Malaysia stepping up production of palm oil, a coconut oil substitute, palm oil output had risen nearly 70 pct since 1971, Romero said. "To add to that the U.S. Soybean Association is spending billions of dollars to discredit palm oil and coconut oil by saying that they are polysaturated fats and bad for the heart," he said. Romero said he expected coconut product export prices to stay up for the rest of the year. They would probably touch a high of 20 cents/pound from the current level of 18.59 cents, and a sharp rise from year-ago levels of 10.50 cents. Romero said the Philippines was at the end of a five-year coconut production cycle which showed production tended to fall after two successive years of good harvests. He said 1985 and 1986 were good harvests and this year, to add to the production fall, drought had affected output. "Traders are stocking up and when they have overbought the prices will start declining again. The only sure way to keep prices stable is by processing, adding more value," he said. Coconut farmers were being encouraged to intercrop by planting other cash crops between coconut trees, he said. "A typical farm may have from 100 to 150 trees sitting on 10,000 square metres of land. That's a lot of space," Romero said. He said the government's proposed land reform program would exclude about 75 pct of the coconut farmers because they had less than the proposed seven-hectares of land. "If the idea of land reform is to increase income levels, production and employment then it won't happen," he said. PCA figures show about one-third of the country's population is dependent on the coconut industry. Coconuts are planted on about 3.2 mln hectares or one-fourth of total agricultural land. REUTER 3; 19870601 PIOSEC <PIO.AL> ACQUIRES SEMICONDUCTOR STAKE Piosec Technology Ltd said it exchanged 4.5 mln common shares for 21 pct of privately owned of Santa Clara, Calif. Followin the acquisition, a Piosec spokesman said, the company has 6.5 mln shares outstanding. Reuter 3; 19870601 POREX <PORX.O> TO MERGE WITH MEDCO 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. Reuter 3; 19870601 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. Reuter 3; 19870601 REAGAN HINTS U.S. WANTS HELP IN PATROLLING GULF President Reagan said he would discuss the Mideast Gulf situation with allied leaders at next week's Venice economic summit and hinted he would seek their help in preserving free navigation. In a speech prepared for delivery as the United States made plans to protect 11 Kuwaiti oil tankers from Iranian attack, Reagan said the American people were aware that "it is not our interests alone that are being protected." Saying that allied dependence on gulf oil was no secret, Reagan declared, "During the upcoming summit in Venice, we will be discussing the common security interests shared by the western democracies in the MIDEAST Gulf. "The future belongs to the brave. Free men should not cower before such challenges, and they should not expect to stand alone." Reagan will meet the leaders of Britain, France, West Germany, Italy, Canada and Japan at the economic summit, which will take place in Venice June 8-10. The 13th annual top-level meeting of the major industrial democracies will take place against a backdrop of rising congressional concern over Reagan's plan to protect gulf shipping and demands that the allies do more. These concerns were heightened by the May 17 Iraqi missile attack on the U.S. frigate Stark which killed 37 seamen. "They died while guarding a chokepoint of freedom, deterring aggression and reaffirming America's willingness to protect its vital interests," Reagan said. In a pre-summit speech celebrating the 40th anniversary of the Marshall Plan, Reagan, who spoke to an audience of foreign affairs experts, also pledged to push for economic expansion by West Germany and Japan to bolster the world trading system. "While the vibrancy of the U.S. economy has contributed enormously to the world expansion, preserving a growing world economy is the business of every member of the world trading community," he said. "It will be made clear, especially to our friends in Japan and the Federal Republic of Germany, that growth-oriented domestic policies are needed to bolster the world trading system on which they depend." Reagan coupled this appeal with a call for compliance with allied accords on exchange rate stability. "Economic policy decisions made last year in Tokyo and at this year's meetings of Group of Seven 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." Reuter 3; 19870601 RENISON GC AND CITY RESOURCES SET PNG GOLD VENTURE Renison Goldfields Consolidated Ltd <RGFJ.S> (RGC) and explorer have agreed in principle on a joint venture to re-examine the Bulolo alluvial gold field in Papua New Guinea, City Resources said. City Resources would progressively earn up to 66.66 pct of RGC's Prospecting Authority 585, which covers all the field, by spending a total of 6.5 mln kina, it said in a statement. It said it believed Bulolo was not fully exploited in the past, noting the literature refers to heavy gold losses in tailings during dredging from 1931 to 1967 which produced a total of 2.1 mln ounces. City Resources also said previous dredging was only carried out to a depth of 36 metres and high grade gold values are reported to at least 60 metres in the central part of the Bulolo Valley and possibly as deep as 90 metres. In its productive life, recovered average grade at Bulolo was 0.3 rpt 0.3 grams a tonne from some 207 mln cubic metres of gravel, it said. City Resources will act as operator. The Bulolo field, in Morobe Province, was the first successful gold mining operation of after it was floated in Canada in 1926. It operated the field until dredging ceased in 1967. REUTER 3; 19870601 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 . Full name Royex Gold Mining Corp. Reuter 3; 19870601 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 350,000 bpd, Mobil Corp and Chevron Corp 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 , Exxon Corp , Mobil Corp and Texaco Inc but is now owned by Saudi Arabia which bought its assets although the ex-partners have various agreements with Saudi Arabia. Reuter 3; 19870601 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. REUTER 3; 19870601 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. Reuter 3; 19870601 SHELL, CALTEX, BP REVISE SINGAPORE PETROL PRICES Shell Eastern Pte Ltd will revise pump prices of petrol from 2300 hours local while Caltex Asia Ltd and BP Singapore Pte Ltd will revise theirs at midnight tonight, company officials said. Caltex and Shell will set prices of 0.15 gm lead at 96.8 cents/litre for 97 octane and 90.2 cents for 92 octane. BP will set prices at 96.8 cents/litre and 90.6 cents, respectively. Previous industry pump prices for 0.4 gm lead were 94 cents for 97 octane and 87.6 cents for 92 octane. REUTER 3; 19870601 SINGAPORE OIL COMPANIES TO SET OWN PUMP PRICES Singapore oil companies can set their own petrol and diesel prices at the pump from today subject to ceilings determined by their individual wholesale prices, The Ministry of Trade and Industry said. The ministry previously revised pump prices and announced the changes for the oil companies. Lead content of petrol is further cut to 0.15 gm/litre from 0.4 gm from today. Pump prices of the lower lead petrol grades are expected to be announced soon by the oil companies which have said wholesale prices are between 1.3 cents/litre to 3.2 cents higher than previous grades. REUTER 3; 19870601 SINGAPORE PETROLEUM CO REVISES PETROL PUMP PRICES Singapore Petroleum Co Pte Ltd will revise pump prices of petrol from June 2, an official said. Grade 97 octane with 0.15 gm/lead will be 96.8 cents/litre against 94 cents previously for 0.4 gm lead. Grade 92 octane will be 90.6 cents against 87.6 previously. SPC's price revision follows the Ministry of Trade and Industry's move to liberalise petrol pricing by allowing oil companies to set their own pump prices. New grades of petrol with lower lead content are sold in Singapore from today in line with the Ministry of Environment's regulations. REUTER 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. REUTER 3; 19870601 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 , 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 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. Reuter 3; 19870601 SRI LANKA OFFERS 250 MLN RUPEES IN T-BILLS The Central Bank said it will offer offer 250 mln rupees worth of three-month treasury bills in a tender closing on June 4. REUTER 3; 19870601 SRI LANKAN TEA WORKERS LAUNCH ONE-DAY PROTEST Thousands of tea workers of Indian origin went on strike today to press demands for citizenship and voting rights in Sri Lanka, a union statement said. The Ceylon Workers Congress (CWC) said its 400,000 members launched a prayer campaign at temples and other places in a non-violent protest to get the authorities to expedite citizenship procedures. A CWC spokesman said a three-day campaign was suspended after a Cabinet committee promised to speed up procedures under a new set of regulations. Trade sources said the strike did not affect production or today's Colombo auction. Reuter 3; 19870601 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. Reuter 3; 19870601 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 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 . The newspaper story mentioned speculation American Express Co , 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. Reuter 3; 19870601 TIN TRADERS' RESPONSE MUTED TO KL FUTURES MARKET European free market tin traders made a somewhat muted response to plans for a Kuala Lumpur dollar-based tin futures market due to be launched in October. Traders said the new market would probably be a useful trading medium for Japan and other South East Asian tin interests although European traders generally appear to be reasonably satisfied with the current "free market" system which has been operating since London Metal Exchange, LME, tin trading ceased in October 1985. Dealers here will also want to see how acceptable foreign metal will be on the new market and what sort of demand develops for forward deliveries. There is also a view among European traders that, while the proposed Kuala Lumpur tin futures market would provide another useful reference point, a market inaugurated by the Malaysian government -- in the past viewed as a major player at times by the trade -- would make participants uncomfortable. Some traders expressed a preference for a resumption of trading on the London Metal Exchange, but they added that while there has been some behind the scenes discussion on the subject a definite move is unlikely until outstanding High Court litigation actions have been resolved. Spot tin prices on the European free market are currently around 4,200 stg per tonne for high grade metal in warehouse Rotterdam. Over the past 18 months the price moved to a ten year low of 3,400 stg in March 1986 and rebounded to as high as 4,680 stg in December 1986. This compares with 8,140 stg last paid when LME trading ceased in October 1985 and a record high tin price of 10,350 stg traded for Cash Standard Grade metal in June of that year. LME warehouse stocks are now near a two-year low at 28,065 tonnes, having fallen steadily from a record high of 72,485 tonnes reached in February 1986. Traders said the free market turned bullish during late last year based on producer forecasts of a supply/demand deficit of some 28,000/29,000 tonnes. Analysts were predicting prices of up to 5,000 stg per tonne during 1987. However, the trend was reversed following a strong upswing in sterling versus the dollar and values fell back briefly to 4,100 stg last month after approaching 4,700 stg in December. The decline accelerated as producers who had sold very little metal at the higher levels became competitive sellers. There was also a lack of significant demand from major steel mills who made large purchases prior to the new year. Traders say the 15 ITC creditor banks' original tin holdings of nearly 45,000 tonnes have now been almost halved, and the bulk of material still available is being held by Malaysian and Japanese firms which are reluctant to depress the market with unwanted metal. Some 80,000 tonnes were held by banks and brokers after the International Tin Council's, ITC, buffer stock manager halted support operations on the LME on behalf of the 22 members nations of the International Tin Agreement. The overhang of metal was reduced further by broker Shearson Lehman Brothers, which earlier this year reported having sold its ITC-related holdings and halved its overall tin position. Analysts see no immediate sign of a rally in European tin prices and movements are still expected to be largely related to currency fluctuations, unless significant consumer demand emerges for the third quarter. The Association of Tin Producing Countries, ATPC, has made efforts since the collapse of the ITA to achieve higher world prices by attempting to bring all major producers under an export control umbrella, but to date Brazil and China, two major producers, remain unaffected by the ATPC argument and apparently are continuing to offer material at discounts to consumers in main European trading centres, dealers said. Reuter 3; 19870601 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. Reuter 3; 19870601 TOTAL PETROLEUM <TPN> SHUTS TEXAS PIPELINES Total Petroleum NA 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. Reuter 3; 19870601 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. REUTER 3; 19870601 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. REUTER 3; 19870601 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. Reuter 3; 19870601 U.S. GULF OF MEXICO RIG COUNT CLIMBS TO 38.9 PCT Utilization of offshore mobile rigs in the Gulf of Mexico climbed by 2.1 pct last week to 38.9 pct, reflecting a total of 91 working rigs, Offshore Data Services said. One year ago, the Gulf of Mexico utilization rate was 32.5 pct. Offshore Data Services said some drilling contractors had reported recent increases of about 1,000 dlrs a day on large jackup rigs, which now command rates of 11,000 to 12,000 dlrs a day. In the European/Mediterranean area the rig utilization rate rose 0.6 pct to 53.6 pct, against 67.3 pct one year ago. Worldwide rig utilization rose by 1.2 pct to 57.7 pct, reflecting a net increase of eight working rigs. Offshore Data Services said a total of 419 rigs were in use worldwide and 307 were idled last week. Reuter 3; 19870601 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. REUTER 3; 19870601 U.S. TRADE BILL VERY DANGEROUS FOR CANADA, LOBBY A trade bill before the United States House of Representatives "is a very dangerous bill for Canadian industry," Canadian Forest Industry Council chairman Adam Zimmerman told reporters. By changing the definition of subsidy under U.S. countervailing duty law, House of Representatives Bill 3 removes protection for companies that take advantage of widely used government programs, Zimmerman told a media briefing. "Clearly, any industry to which Canadian governments grant rights to fish, mine, cut timber, or produce power could be vulnerable to a finding of a subsidy under this language," he said. The Canadian forest lobby's Zimmerman also said the House of Representative Bill would adopt a new way of measuring subsidies that would greatly increase the size of any countervailing duties that might be imposed on Canadian resource exports to the U.S. Under the bill, any difference between Canadian prices and U.S. or world market prices would constitute a subsidy, he said. Such a method would make Canadian resource industries vulnerable to similar penalties like a 15 pct export tax imposed last January on shipments of Canadian softwood lumber to the U.S., Zimmerman added. Canadian negotiators agreed to levy the new tax if a U.S. forest industry lobby would drop its request for a countervail duty on imports of Canadian softwood lumber. "We represent the first victim of the move to price other countries' natural resources according to the U.S. system," Zimmerman said. "If we're an example, than other resource industries had better watch out," he added. Zimmerman said the Canadian Forest Industry Council plans to discuss concerns about the U.S. trade bill with lobby groups from other Canadian resource industries. Reuter 3; 19870601 U.S. TRADE DATA SEEN AS KEY TO DOLLAR TREND The dollar's recent signs of stability have raised hopes that its 27-month decline may be nearly over, but most currency analysts refuse to commit themselves until after the June 12 release of U.S. trade data for April. "The trade data will be a deciding factor to see if the dollar has bottomed out," said Jim McGroarty of Discount Corp. Since February 1985, the dollar has nearly halved its value against the yen and the mark as part of an officially orchestrated campaign to make U.S. goods more competitive on world markets and redress gaping world trade imbalances. On April 27, the dollar fell to a 40-year low of 137.25 yen but has enjoyed a modest recovery over the last few weeks, topping 145 yen today for the first time in nearly two months. Many economists now believe that the dollar has fallen far enough to ease the trade deficit's drag on the U.S. economy. The U.S. trade gap narrowed to 13.6 billion dlrs in March from 15.1 billion in February and is expected to show continued improvement in April in volume, if not in real, terms. Keiichi Udagawa of Bank of Tokyo in New York said that if further progress is reported, the dollar would head back up towards 150 yen. "There is growing consensus that the dollar has bottomed out for the medium term," added Tom Campbell of First National Bank of Chicago. Other factors supporting this bullish view were growing expectations that Federal Reserve Chairman Paul Volcker would be reappointed for a third four-year term in August, Japan's larger-than-expected economic stimulus package last week and more favorably technical chart signals, analysts said. The dollar was also aided by Japan's moves to dampen speculative selling in Tokyo and by reports of active central bank intervention to support the dollar. The Federal Reserve Bank of New York said last week that the U.S. monetary authorities bought more than four billion dlrs during the February-April period -- the largest amount since the dollar crisis of the late 1970's. Discount Corp's McGroarty described the Fed's intervention volume as "impressive". James O'Neill of Marine Midland Bank was not so positive, however: "the dollar has not yet bottomed out. After the trade data are released, the dollar could fall towards 1.77 marks and 140 yen." Similarly, Natsuo Okada of Sumitomo Bank in New York warned, "I don't think the dollar has bottomed out yet." Although the dollar could rise as high as 146.50 yen, Okada said market impatience about the painstakingly slow decline of the U.S. trade deficit may lead to renewed pressure. Currency analysts also warned about an unfavorable reaction to the seven-nation economic Summit on June 8 to 10 in Venice, which is likely to focus on the implementation of previous commitments rather than yield any fresh initiatives. President Reagan said today, "economic policy decisions made last year in Tokyo and at this year's meetings of Group of Seven finance ministers in Paris and Washington cannot be ignored or forgotten." "The commitments made at these meetings need to be translated into action," he added in a speech, celebrating the 40th anniversary of the Marshall aid plan for Europe. Now that Tokyo has unveiled its fiscal stimulus package, analysts expected Bonn and the dollar/mark rate to bear the brunt of U.S. calls for further action. Marine Midland's O'Neill said, "pressure will build up on Germany to take stimulative action like Japan." Some Japanese bank dealers warned that although the dollar could hold above 145 yen for some months it could also come under attack again if it seems the latest economic package is not having much impact on Japan's economy and its trade surplus. Reflecting a longer-term uncertainty, some some trust banks and Japanese insurers are keeping their short dollar positons hedged against exchange losses in their foreign portfolios, while some others have started covering those short positions, Japanese bank dealers said. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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. Reuter 3; 19870601 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." Reuter 3; 19870601 VENEZUELA GETS 300 MLN DLRS CREDIT FOR ALUMINUM Venezuela has obtained more than 300 mln dlrs in financing for industrial projects and increased its lines of credit for import financing, finance minister Manuel Azpurua said. 'We can say that we are achieving the recuperation of credit, but that cannot be done overnight,' Azpurua said in a television interview. He said a credit agreement for 100 mln marks will be signed this week with the German state bank Kreditanstalt fur Wiederaufbau (KFW), to finance an expansion of the state aluminum company Venalum. The credit will be divided into two separate agreements, one for 85 mln marks with an interest rate of 6.13 pct, and another for 15 mln marks, at 6.20 pct. Azpurua said financing has also been obtained for expansion of Alcasa, another state aluminum company, and for projects in the state steel and petrochemical industries. Yesterday, he said Venezuela obtained two new credits of 5.0 mln dlrs each for export financing, one from Credit du Nord of France and the other from Britain's Midland Bank. The Venezuelan government has been criticised at home for failing to obtain new credits, despite its insistence on repaying foreign debt according to the terms of a rescheduling accord reached last February. Azpurua recently visited Tokyo hoping to acquire new credits for industrial expansions but clinched no agreements. Japanese officials refused to allow a new issue of Venezuelan bonds until the country regains its 'Triple A' credit rating. Reuter 3; 19870601 VENEZUELA HAS NO PLANS TO SEEK REVISED DEBT ACCORD Venezuela has no plans to try to renegotiate the debt rescheduling agreement it worked out with creditor banks in February, public finance director Jorge Marcano told Reuters. Speaking here after a meeting of the 11-nation Cartagena group, Marcano said he was aware of political pressure at home to reduce debt payments but did not think such a move would benefit Venezuela. "We have no intention of revising the terms of the accord," he said. "There would be little to gain and in fact it would probably be detrimental." Venezuela agreed with its bank advisory committee on a 14.5 year rescheduling of 20.3 billion dlrs in public sector foreign debt, with an interest rate 7/8 pct over Libor. The previous agreement, reached a year before but never implemented, was for 12-1/2 years with a 1-1/8 pct spread. In Caracas there have recently been calls to invoke the agreement's contingency clause which the government used last year to amend the original terms after a 40 pct drop in oil income. But Marcano said the bulk of payments to be made this year are on private debts and non-rescheduled public debts. Marcano said Venezuela, which has reduced its debt by six billion dlrs since 1983, should have no problems in repaying restructured debt this year or next. Asked whether the government felt badly treated with its 7/8 pct spread when Mexico and Argentina have won a 13/16 pct margin, Marcano said he still felt Venezuela had a good deal. "Venezuela has restructured its debt so that most of it is being repaid at 7/8 pct, which I think is better than the other countries," he said. The rescheduling accord covers some 90 pct of Venezuela's commercial bank debt, which accounts for more than 90 pct of the total public sector external debt. Venezuela has almost no debt outstanding to multilateral agencies. Marcano said attempting to revise the rescheduling accord a second time would probably hurt Venezuela's bid to restore it credit rating and raise new loans. He said Venezuela now obtains trade credit lines without a government guarantee, something that Argentina and others are just starting to try to negotiate in their restructuring packages. Venezuela is currently seeking loans in Japan and West Germany to finance steel and aluminium expansion. According to finance minister Manuel Azpurua, a 100 mln mark credit has been lined up for the Venalum aluminium plant. Marcano said no mandate has yet been given for a planned 100 mln dlr bond issue, although he confirmed that talks were continuing with Morgan Guaranty and other banks. Banking sources said one option was to privately place the bonds through the Caracas-based Banco de Venezuela, which would underwrite the issue, but Marcano said no decision has yet been made. REUTER 3; 19870601 VENEZUELA OBTAINED 300 MILLION DLRS IN CREDITS venezuela has obtained more than 300 mln dlrs in financing for industrial projects and has also increased its lines of credit for import financing, finance minister manuel azpurua said. "we can say that we are achieving the recuperation of credit, but that cannot be done overnight," azpurua said in a television interview. Azpurua said a credit agreement for 100 mln marks will be signed this week with the german state bank kreditanstalt fur wiederaufbau (kfw), to finance an expansion of the state aluminum company venalum. The credit will be divided into two separate agreements, one for 85 mln marks with an interest rate of 6.13 pct, and another for 15 mln marks, at 6.20 pct. Azpurua said financing had also been obtained for the expansion of alcasa, another state aluminum company, as well as for projects in the state steel and petrochemical industries. He did not provide details. Yesterday, after a meeting of leaders of the ruling accion democratica party, azpurua said venezuela had obtained two new credits of five mln dlrs each for export financing, one from credit du nord of france and the other from the midland bank of great britain. The finance minister's statements came as the government is under sharp criticism for failing to obtain new credits, despite its insistence on repaying the foreign debt according to the terms of a rescheduling accord reached last february. Azpurua and other senior economic officals returned from a trip to tokyo last week in which they hoped to acquire new credits for industrial expansions, but no agreements were reached. Japanese officials also refused to allow a new issue of venezuelan debt bonds because until the country regains its 'triple a' credit classification. Reuter 3; 19870601 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. REUTER 3; 19870601 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 , , J. Patrick Michaels Jr and . 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 , 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. Reuter 3; 19870601 WASTE MANAGEMENT <WMX> BOARD OKAYS MODULAIRE BUY Waste Management Inc said its directors approved a May 10 accord with Modulaire Industries 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. Reuter 3; 19870601 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. REUTER 3; 19870601 ZAMBIA CUTS PRICES AS TROOPS PATROL COPPERBELT The Zambian government today announced minor price cuts for essential commodities as part of its new economic strategy, while police and troops patrolled the northern Copperbelt to prevent any outbreaks of rioting. However, staple foods, such as bread, sugar and maize meal, were not affected by the cuts and many people said this could provoke trouble from disgruntled elements who had expected more sweeping reductions. Observers in the capital expressed disillusionment with the small extent of the price cuts, which ranged up to 10 pct on items such as blankets, soap, detergents and baby food. Residents in the Copperbelt contacted by telephone said government forces had set up roadblocks around the main towns. In Lusaka, business went on as usual and there was no sign of troops or police reinforcements on the streets. President Kaunda had ordered the price reductions to take account of lower import costs following the revaluation of the kwacha to a fixed rate of eight per dlr from 21 on May 1. The revaluation formed part of a new go-it-alone economic strategy which Kaunda adopted to replace Zambia's IMF austerity program. Labour leaders in the Copperbelt said last week gangs of unemployed youths were being formed in the politically volatile region to take action against shops that did not reduce their prices after today's deadline. Fifteen people were killed in the Copperbelt during food riots last December after the government tried to lift maize subsidies. Reuter 3; 19870602 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. REUTER 3; 19870602 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." REUTER 3; 19870602 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.5;30;side 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." REUTER 3; 19870602 U.K. RESERVES LIFT HOPES OF FURTHER BASE RATE CUT The record 4.9 billion dlrs rise in U.K. Reserves in May to a total 34.7 billion has lifted hopes for a further cut in bank base lending rates after the June 11 general election, market analysts said. Sterling would have risen on the much better than expected number but for market nerves about the poll outcome, they said. But the weight of foreign currency and gold reserves now available to the authorities to support the pound should curb any market tendency to panic if U.K. Opinion polls show the ruling Conservative Party's lead slipping, they added. "We have been intervening to a very much greater extent than we have done hitherto," Chancellor of the Exchequer Nigel Lawson said at a news conference today, commenting on the news of the record reserves rise. He put the U.K. Intervention in the context of the Louvre accord between leading industrial nations to stabilise the dollar, partly through direct intervention on foreign exchanges. "We have been playing a very full part ourselves," he said. But market analysts see the recent upward pressure on sterling, and consequent need for official sales to damp down its rise, more in the light of local factors. Steven Bell, chief economist at Morgan Grenfell Securities, said that corporate money has been flowing back into Britain amid hopes of another Conservative government, after fears last autumn of a Labour election victory sent it flooding out. U.K. Portfolio investment is also returning, while foreign buyers see U.K. Growth propects and high bond yields as attractive. They will be strong buyers of U.K. Assets, notably equities, once the election is out of the way, Bell said. Analysts see this pressure as the main hope for lower interest rates, as the government is expected to try to reverse the loss of export competitiveness caused by a strong pound. Today, however, the pound hardly moved on the reserves news, dipping on its trade-weighted index against a basket of currencies from 73.1 pct of its 1975 value at 1000 GMT to 73.0 pct at 1100 GMT, half an hour after the figures were released. "The market doesn't want to do anything because of the election," commented an economist at a big U.S. Investment bank. Several dealers and analysts added that market forecasts of a rise in reserves of between one and three billion dlrs had overestimated the amount of pound sales that were likely to have been disguised by swap arrangements or transactions on the forward market. The market also seemed to have overestimated the amount of sterling the Bank of England bought at the end of May to smooth the pound's sudden downturn, while some of the intervention reported in May probably occurred in April, they said. The key three months interbank money market rates eased about 1/8 point, reflecting cautious hopes that the downtrend in U.K. Interest rates will be revived following the reserves news, analysts said. Government bond prices initially firmed, but the market was muted as traders worried about the funding implications of another huge rise in reserves, they added. Morgan Grenfell's Bell forecast a half point base rate cut from the current nine pct level soon after the election, so long as poll projections of another Conservative victory prove accurate, with another half point later. Justin Silverton, equity economist at Credit Suisse Buckmaster and Moore, said a full point reduction might be possible. "Sterling will be held down by interest rate cuts in future, rather than this active intervention," he predicted. Kevin Boakes of Greenwell Montagu Gilt-Edged cautioned against over-optimistic forecasts, but agreed a half point cut looked likely. A cut before the election has been virtually ruled out. "The Bank (of England) is both worried about the political problem of cutting rates during an election campaign ... And has signalled some worry about broad money (growth)," said Robin Marshall, chief U.K. Economist at Chase Manhattan Securities. He said the 10 billion dlrs increase in total reserves in the past seven months may foreshadow full U.K. Entry into the European Monetary System. But Bell said the authorities would like to see another 10 or 15 billion dlrs in the reserves before joining, if they did so. But, unlike many analysts, he doubted the U.K. Will go in. REUTER 3; 19870602 U.K. RESERVES SHOW RECORD UNDERLYING RISE IN MAY Britain's gold and currency reserves rose a record underlying 4.76 billion dlrs in May, following April's 2.9 billion dlrs increase, the Treasury said. The underlying trend indicates the level of recent Bank of England intervention on currency markets to curb sterling's strength. It was above market expectations which had been for a rise of between one billion and three billion dlrs. The Treasury declined comment on the figures. Actual reserves rose 4.87 billion dlrs in May, compared with April's 2.8 billion increase, to a total value of 34.68 billion dlrs, compared with 29.81 billion at the end of April. Borrowings under the exchange cover scheme were 238 mln dlrs, against April's 66 mln. Repayments under the scheme were 85 mln dlrs, after 90 mln previously, with capital repayments of eight mln, after three mln last month. Repayments of government debt amounted to 33 mln dlrs. The underlying reserves increase is net of borrowings and repayments. It was larger than the previous record 3.04 billion dlrs rise seen in October 1977. The May increase represents the seventh monthly rise, with reserves up 9.947 billion dlrs in that period, and up 9.816 billion since the start of 1987. REUTER 3;

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