18-JUN-1987 18:46:13.14 usa F f4966 reute u f BC-BEVERLY-HILLS-COP-II 06-18 0074 NEW YORK, June 18 - Gulf and Western Inc's <GW> Paramount Pictures Corp division said its movie "Beverly Hills Cop II" has topped the 100 mln dlr mark at the box office on the 29th day of its North American release. Paramount said the the movie has become the fastest movie to hit the 100 mln dlr mark with an "R" rating, which means that anyone under 17 must be accompanied by their parents. Reuter 18-JUN-1987 18:46:33.73 usa F f4968 reute s f BC-TRANSAMERICA-CORP-<TA 06-18 0022 SAN FRANCISCO, June 18 - Qtly div 44 cts vs 44 cts Pay July 31 Record July 3 Reuter 18-JUN-1987 18:48:35.56 usajapan F A f4972 reute d f AM-POLICY 06-18 0078 WASHINGTON, June 18 - The House today supported a call for Japan to boost its defense spending to help share the burden of protecting Western interests in sensitive areas around the world, including in the Gulf. House member approved a measure that would require Secretary of State George Shultz to enter into talks with Japan on increasing Japanese defense spending to at least 3 pct of its gross national product. The measure, passed during consideration of the 1988-89 State Department funding bill would not require an increase, but legislators called on Japan to spend more on defense. The Senate must approve the measure before it becomes law. "We don't have to bash the Japanese. We have to show them how to share the burden of the defense of the free world," said Rep. Robert Dornan, a California Republican. The amendment calls on Shultz to enter into talks with Japan with the aim of reaching agreement on one of two alternatives: either Japan can spend 3 pct of its GNP on defense by itself or give the equivalent amount of money to the United States as a kind of security fee. Reuter 18-JUN-1987 18:55:48.68 gnp oecd RM f4988 reute f f BC-OECD-SEES-1.5-PCT-WES 06-18 0010 ****** 18-JUN-1987 18:56:07.09 gnpcpibop franceaustralia oecd RM f4990 reute u f BC-AUSTRALIA-SET-TO-GROW 06-18 0117 PARIS, June 19 - Australia's economy should manage modest growth over the next two years after a sharp slowdown but unemployment could still edge upwards, the Organisation for Economic Cooperation and Development (OECD) said. The organisation's latest half-yearly report says Gross Domestic Product will grow by 2.5 pct this year and by 2.75 pct in 1988 compared with only 1.4 pct in 1986. The growth will be helped by higher stockbuilding and stronger domestic demand following tax cuts and higher real wages, it added. The report forecasts a decline in inflation, with consumer prices increasing by 8.5 pct this year and 6.25 pct in 1988. The current account deficit shows signs of easing slightly and could narrow to 12 billion dlrs by the end of 1988. While predicting slightly stronger growth than last year, however, the report revises downwards the OECD's earlier growth forecast for 1987 of 3.75 pct. The OECD predicts a similar combination of modest economic growth and rising unemployment for New Zealand, which is struggling to recover from a major economic crisis. The country's GDP, which contracted by 0.6 pct last year, should again show growth over the next two years, rising by 0.25 pct this year and a more substantial 2.75 pct in 1988. Reuter 18-JUN-1987 19:03:26.58 acq usa F f4996 reute u f BC-/SQUIBB-<SQB>-SAID-NO 06-18 0104 BY MARJORIE SHAFFER, REUTERS NEW YORK, June 18 - Robert Fildes, president and chief executive of Cetus Corp <CTUS.O>, told Reuters that Squibb Corp is not interested in buying Cetus. Earlier the companies said Squibb would buy from Cetus a five pct equity postion in Cetus for about 40 mln dlrs. "This is not an attempt by Squibb to become a major majority holder in Cetus," Fildes told Reuters in an interview. "Squibb has not approached us with any indication that they want to acquire us and we wouldn't be interested in that kind of arrangement," said Fildes. Squibb could not be reached to comment on the late comments by Fildes. Squibb is Cetus' first pharmaceutical partner and the only one to own an equity position in Cetus. Eastman Kodak Co <EK> and W.R. Grace <WR> both have joint ventures with Cetus, but neither owns an equity position in the company, said Fildes. Cetus has a venture with Kodak to develp diagnostic products and with Grace to develop agricultural products. Earlier, Squibb and Cetus announced in a joint statement an agreement in principle to form a joint venture to develop new biotechnology products in several fields. As part of the deal Squibb will license several of Cetus' anticancer agents, including interleukin-2, in development. Squibb will sell the drugs only in Japan and other markets but not in North American and Western Europe. "We wouldn't have done this deal had it not been understood that Cetus wants to build its own fully integrated business in North America and Europe," said Fildes. He said Squibb was the good partner because Squibb has a major joint venture in Japan and has sales capabilities of its own in that market. Fildes said Cetus has shunned licensing arrangements with pharmaceutical companies because it wanted to build its own business. Many large corporations have invested in small biotech firms. But Squibb's investment in Cetus is the first it has made in biotechnology. Fildes said that was attractive to Cetus because it wanted a partner that didn't have a relationship with a large number of other biotechnology companies." Fildes said his strategy was to have partners in non drug areas like diagnostics and agriculture, but to "keep the biggest developments in anticancer drugs to ourselves." Fildes said the partnership with Squibb would be used to broaden the company's reach in such big money making areas as the cardiovascular, anti-infective and the anti-inflammatory markets. Squibb is also investming 75 mln dlrs in Cetus' research over the next five years. "Squibb is putting up over 75 mln dlrs in research and development to make it happen, while the equity position part of the package is simply to demonstrate the seriousness of this partnership," said Fildes. Reuter 18-JUN-1987 19:44:15.31 usa F f5022 reute b f BC-NBC-SAYS-IT-WILL-IMPL 06-18 0116 NEW YORK, June 29 - The National Broadcasting Co, a unit of General Electric Co <GE>, said it intends to implement on June 29 a labor contract rejected by union represenatives. A spokesman for the National Association of Broadcast Employees and Technicians, represening 2,800 workers, said its negotiating committee adopted a formal resolution today stating it will inform NBC it will strike upon implementation. "The union will have to decide what action it thinks is appropriate," said Day Krolik, NBC's vice president for labor relations. A union spokesman said NBC has until the day of implemetation to peacefully negotiate a contract. Reuter 18-JUN-1987 19:50:03.10 usa F f5025 reute u f BC-FORMER-SHEARSON-<SHE> 06-18 0099 NEW YORK, June 18 - Mark Stahl, 45, who was a former senior vice president of Shearson Lehman Brothers, until his suspension on April 16, today admitted in U.S. District court here, embezzling almost 19 mln dlrs from his firm over the past year. He entered a guilty plea before United States District Court Judge Vincent Broderick to four specific charges totaling 1,031,000 dlrs on wire fraud. Stahl, who was a senior vice president for finance, told the judge that the total embezzlement amounted to "a little less than" 19 mln dlrs. Through an attorney, Stahl agreed to make restitution to Shearson Lehman of all the embezzled funds if possible. However his guilty pleas today to the four counts will cover all criminal liability of the embezzlement that occurred between April 1986 to last April. Judge Broderick scheduled sentencing for December nine. Stahl faces a maximum sentence of 20 years in jail and one mln dlrs in fines, or both. Reuter 18-JUN-1987 19:53:55.04 earn usa F f5027 reute u f BC-TRI-STAR-PICTURES-INC 06-18 0083 NEW YORK, June 18 - Shr four cts vs four cts Net 1,180,000 vs 902,000 Revs 146.9 mln vs 37.0 mln Avg shrs 33 mln vs 23.9 mln NOTE: Company changed its fiscal year from December 31 to the last day of February, thus results of operations for the year-ago period have been restated to reflect this change. Current first quarter includes results of operations of Loews Theatre Management Corp which Tri-Star acquired December 31. Reuter 18-JUN-1987 20:07:05.93 E F RM f5035 reute f f BC-CANADA-BUDGET-DEFICIT 06-18 0013 ****** 18-JUN-1987 20:07:10.18 V RM E f5036 reute f f BC-CANADA-UPS-CORPORATE 06-18 0014 ****** 18-JUN-1987 20:07:45.08 wilson E F RM f5037 reute f f BC-WILSON-CUTS-PERSONAL 06-18 0011 ****** 18-JUN-1987 20:08:00.01 V RM E f5038 reute f f BC-CANADA-UPS-FINANCIAL 06-18 0015 ****** 18-JUN-1987 20:12:23.11 canada wilson V E RM f5040 reute u f BC-WILSON-TO-HIKE-CORPOR 06-18 0085 OTTAWA, June 18 - Canada will increase corporate tax revenues by about five billion dlrs over the next five years by broadening the tax base and allowing fewer exemptions, finance minister Michael Wilson said. As Wilson previously promised, he said corporations will bear an increased tax burden, despite new measures to lower overall tax rates. Increased corporate revenues will result from broadening the tax base and eliminating special tax exemptions. "The jobs of many Canadians depend on a corporate income tax system that is competitive with other countries, particularly the United States," Wilson said in a prepared speech to the House of Commons. "And it (tax reform) will ensure that profitable corporations carry a bigger share of the total tax burden," he added. Federal tax revenue from corporations will increase by 470 mln dlrs in the fiscal year ending March 31, 1988, 410 mln dlrs in fiscal 1989 and 1.19 billion dlrs in fiscal 1990, according to documents tabled with Wilson's speech. Reuter 18-JUN-1987 20:15:24.21 canada wilson V E RM f5041 reute u f BC-CANADA-FINANCIAL-TAX 06-18 0074 OTTAWA, June 18 - The average tax rate for Canadian financial insitutions will increase to 21.3 pct from 14.5 pct under the new tax reform package, the federal finance department said. The amount of financial institutions' income that is taxed will also increase to 74.0 pct from 48.7 pct, it said in documents tabled with finance minister Michael Wilson's prepared speech to the House of Commons. Under Wilson's plan, the federal government will collect 1.36 billion dlrs more over the next five years from financial insitutions, including banks, trust mortgage and life insurance companies, according to finance department documents. Financial institutions "are going to complain, but we believe the changes are appropriate and affordable," said one finance department official who asked not to be identified. Ottawa will collect more revenue from financial institutions by reducing the amount of reserves they can deduct from taxes, which "will broaden the tax base for this low tax paying sector," the finance department said. Among the changes, chartered banks will no longer be able to use a five-year averaging formula to calculate loan losses that may be deducted for tax purposes. Effective June 17, 1987, banks will deduct bad or doubtful loans during the year they are incurred. The finance department said the impact of the new provisions will be cushioned over a period of five years. The changes are needed to ensure that all financial companies are taxed fairly under deregulation of the financial services industry. "It would be inconsistent for the tax system to continue to provide different reserves for tax purposes for institutions competing in the same marketplace," the finance department said. Reuter 18-JUN-1987 20:20:39.69 canada wilson V E RM f5048 reute u f BC-OTTAWA-WIDENS-SALES-T 06-18 0089 OTTAWA, June 18 - Canada will broaden a federal sales tax levied on manufacturers before scrapping the system in favor of a broad based, multi-staged sales tax, finance minister Michael Wilson said. As expected, Wilson did not include a new sales tax system as part of his wide-ranging tax reforms tabled in the House of Commons today. Instead, the federal government will make interim changes to the existing sales tax to make it more fair for low and middle income Canadians. "The present (sales) tax is fundamentally flawed. It is a hidden, arbitrary and capricious tax," Wilson told the House of Commons. The existing federal sales tax system hurts the Canadian economy by putting more tax on Canadian produced goods than imported goods and adding a hidden tax on Canadian exports that makes them less competitive, Wilson said. Interim changes effective January 1, 1988 will include: -- applying the federal sales tax to marketing companies related to manufacturers -- levying the tax at the wholesale level instead of the manufacturer for a selected range of products -- applying a 10 pct sales tax to telecommunication services, except for residential telephone lines -- quicker collection of federal sales taxes. To offset these changes for low income Canadians, refundable tax credits will be increased to 70 dlrs from 50 dlrs for adults and to 35 dlrs from 25 dlrs for children, the finance department said. Ottawa is considering three alternative forms for a new sales tax, including a goods and services tax, a value added tax and a national sales tax that would combine existing federal and provincial levies into one system, Wilson told the House of Commons. He said the federal government will explore the possibility of one national sales tax with Canada's 10 provincial governments. All provinces except Albeta now levy a provincial sales of tax of varying amounts. Wilson said one joint system would be simpler for taxpayers and maximize economic benefits of tax reform. If Ottawa and the provinces can't agree on a national sales tax system, Wilson said the federal government will consider either a goods and services tax or a value-added tax. A goods and services tax would apply at one rate to virtually all goods and services in Canada and would include further increases in refundable tax credits for low and middle income Canadians, the finance department said in documents accompanying Wilson's speech. A federal value-added tax, similar to European tax systems, would also be broad based but would allow more flexibility to exempt selected goods and services, the department said. The finance deparment said the main drawback of a value added tax is that it would be more complex and costly to implement than the other two proposals. Reuter 18-JUN-1987 20:28:39.01 gnp canada wilson V E RM f5055 reute u f BC-CANADIAN-BUDGET-DEFIC 06-18 0088 OTTAWA, June 18 - Finance Minister Michael Wilson said tax reform will not affect his determination to reign in expenditures, but his forecasts show a slowing of the decline in the budget deficit in the late 1980s. "Responsible tax reform must be fiscally responsible," Wilson said in a speech prepared for the House of Commons. Wilson estimated the deficit will fall to 29.3 billion dlrs in the year ending March 31, 1988, the same level as he forecast in the February budget. And in the year ended this past March, the deficit was expected to have been one billion dlrs lower than the 32 billion dlr shortfall originally forecast, Wilson said. Wilson said in the current 1988 fiscal year higher-than-anticipated spending, particularly in farm income support programs, will be offset by higher-than-anticipated revenues. But finance department documents show the pace of deficit reduction was expected to slow temporarily in fiscal 1989 and 1990 as a result of lower oil and grain prices and the transition to the reformed taxation system. The deficit is expected to total 28.9 billion dlrs in fiscal 1989 and 28.6 billion dlrs in 1989 and then fall to 26.1 billion dlrs in 1991. Wilson was optimistic about the outlook for the Canadian economy, forcasting gross domestic product would expand 2.8 pct this year and 3.0 pct in 1988. In 1986 the economy grew by an actual 3.1 pct. Inflation, meanwhile, is expected to stabilize at around the current four pct level over the next two years. Reuter 18-JUN-1987 20:33:47.78 canada wilson V E RM f5060 reute u f BC-CANADA'S-WILSON-SETS 06-18 0106 OTTAWA, June 18 - Finance Minister Michael Wilson tabled a ways and means motion to immediately impose a special tax on preferred share dividends to eliminate a significant loss of corporate tax revenue. Under the motion, which is used to introduce most financial tax changes, dividends on all preferred shares issued after June 18 will be taxable. The issuing corporation will be able to choose between two forms of tax, one that imposes a 25 pct tax on dividends with a subsequent additional 10 pct tax paid by the shareholder, and one that imposes a flat 40 pct tax on dividends. "Measures to reduce the tax advantages of after-tax financing arrangements using preferred shares are a critical step in achieving the broadened corporate tax base required to fund personal income tax reductions," Wilson explained. The minister said many profitable corporations, using various deductions built up over the years, pay no taxes, although they are in a position to pay dividends out of their profits. Reuter 18-JUN-1987 20:35:36.77 canada wilson V E RM f5063 reute u f BC-CANADA-SETS-WIDE-RANG 06-18 0089 OTTAWA, June 18 - Finance Minister Michael Wilson unveiled a wide-ranging reform of the personal tax system that includes limiting the capital gains exemption and a sharp cut in the dividend tax credit. With most changes effective at the first of next year, Wilson also announced he was cutting the number of tax brackets from 10 to three. He said the changes will cut personal tax revenues by two billion dlrs in 1988 and by more than 11 billion dlrs over the next five years. "Most Canadians will pay lower taxes because of two far-reaching changes. A new structure of federal income tax rates and the conversion of exemptions and deductions to tax credits," Wilson told the House of Commons. The new tax brackets will be 17 pct on the first 27,500 dlrs of taxable income, 26 pct on the next 27,500 dlrs and 29 pct on taxable income in excess of 55,000 dlrs. The maximum tax rate is 34 pct under the current system. In a major reversal of his own initiative, Wilson said the controversial 500,000 dlrs capital gains exemption will be reduced to 100,000 dlrs over an investors' lifetime. Wilson introduced the exemption shortly after taking office in 1984 as a a way of stimulating investment, but it was sharply criticized by the opposition as over-generous to wealthy investors. The 500,000 dlr lifetime exemption will be kept on the sale of farm land and for small businesess, however. Also, the taxable portion of a capital gain will increase from 50 pct currently to 66-2/3 pct in 1988 and 75 pct in 1990. The dividend tax credit will be reduced from 33-1/3 pct to 25 pct and the deduction for up to 1,000 dlrs of interest and dividend income will be eliminated in 1988. Wilson said tax treatment for registered retirement savings plan contributions will be maintained but the phase in of the increase in the maximum limit to 15,500 dlrs will be delayed four years to 1994. Reuter 18-JUN-1987 20:48:32.87 interest RM f5072 reute f f BC-ANZ-BANKING-GROUP-SAY 06-18 0014 ****** 18-JUN-1987 21:07:33.30 money-fxdlr miyazawa RM AI f5083 reute f f BC-Japan-still-asking-in 06-18 0013 ****** 18-JUN-1987 21:09:30.49 interest australia RM AI f5084 reute b f BC-ANZ-BANKING-GROUP-CUT 06-18 0092 MELBOURNE, June 19 - The Australia and New Zealand Banking Group Ltd <ANZA.S> said it will cut its prime rate to 16.00 pct from 16.50, effective June 22. The cut takes the ANZ's prime to the lower end of the range of prime rates being offered by Australian trading banks. The highest rate is 17.50 pct. The cut follows announcements of cuts yesterday by <Citibank Ltd> to 16.00 pct from 16.5, effective today, and <Commonwealth Bank of Australia> to 15.75 pct from 16.25, effective June 24. REUTER 18-JUN-1987 21:15:11.47 money-fxdlr japan miyazawa RM AI f5087 reute b f BC-JAPAN-STILL-WANTS-SPE 06-18 0069 TOKYO, June 19 - The Finance Ministry is still asking financial institutions to limit speculative dollar dealings, Finance Minister Kiichi Miyazawa told reporters. He was responding to rumours in the New York currency market overnight that the Ministry was reducing its pressure on institutions to refrain from excessively speculative dollar dealings. REUTER 18-JUN-1987 21:32:28.55 india gandhi RM V f5094 reute u f BC-GANDHI-PARTY-BADLY-DE 06-18 0108 NEW DELHI, June 19 - Prime Minister Rajiv Gandhi's Congress (I) party was swept from power in the northern state of Haryana by an opposition landslide. The loss was a major personal setback for Gandhi whose vote-winning ability was on trial after political scandals in Delhi and a string of electoral losses since he took command of the party in 1984. With 53 results in for Haryana's 90-seat assembly, Congress had won only two seats against 63 previously. Before the poll, Congress politicians in Delhi said privately that a loss in Haryana could open a party leadership debate. REUTER 18-JUN-1987 21:34:55.99 south-korea RM V f5096 reute u f BC-SOUTH-KOREA-THREATENS 06-18 0107 SEOUL, June 19 - The government will take emergency measures if the present wave of violent protest demonstrations continues, state radio said. The radio, which did not specify the measures, said the decision was taken today at a meeting of top ministers and security officials attended by Prime Minister Lee Han-key. It said a special statement would be made shortly. Thousands of demonstrators took to the streets of Seoul and other cities yesterday, battling riot police and demanding the resignation of President Chun Doo Hwan. It was the ninth successive day of violent protests. REUTER 18-JUN-1987 21:56:40.46 usa F f5107 reute r f BC-COURT-ORDERS-INT'L-ME 06-18 0107 TALLAHASSEE, Fla., June 18 - A Circuit Court judge ordered the company that insured the solvency of International Medical Centres Inc to show cause why it should not honour its contract with International, according to Florida's Department of Insurance, which had filed a petition on the matter. As previously reported, International, the largest health maintenance organisation in Florida was declared insolvent on May 14. Federal regulators had also told the company its Medicare contract would be terminated on July 31 because of the company's financial and management problems. Michelle McLawhorn, Florida Department spokeswoman, said International's insurer, State Mutual Life Assurance Co of America, had made clear it would fight activation of the policy because International did not provide it with accurate financial records. State Mutual could not be reached for comment. McLawhorn said it was not yet known how many creditors International had or how big its debt was. The court gave State Mutual 20 days to show why it should not be obliged to pay claims against the solvency policy. REUTER 18-JUN-1987 22:26:37.58 brazil sarney RM AI f5137 reute u f BC-BRAZIL-RULING-PARTY-T 06-18 0101 BRASILIA, June 18 - The ruling Brazilian Democratic Movement Party (PMDB) will hold a national convention on July 18 and 19 to discuss the length of the Presidential term, a PMDB spokesman said. Although the country's constitution allows for a six-year term, Sarney said he would remain only five years after he came to power in 1984. The Constituent Assembly is drawing up a new constitution and severe economic problems have increased the pressure on it to call early elections. A faction of the PMDB favours a poll in November next year. REUTER 18-JUN-1987 22:33:01.85 money-supplymoney-fxdlr usa RM AI f5141 reute u f BC-FED-DATA-SUGGEST-NO-C 06-18 0086 By Kathleen Hays, Reuters NEW YORK, June 18 - New U.S. Banking data suggest the Federal Reserve is guiding monetary policy along a steady path and is not signalling any imminent change of course, economists said. But they also said that if money supply growth remains weak, as this week's unexpected eight billion dlr M-1 decline suggests it may, this could influence the Fed to loosen its credit reins and move toward a more accommodative monetary policy. A Reuter survey of 17 money market economists produced a forecast of a 600 mln dlr M-1 decline for the week ended June 8, with estimates ranging from a gain of one billion dlrs to a decline of four billion. Instead, M-1 fell eight billion dlrs to 745.7 billion dlrs at a seasonally adjusted annual rate. Coming on the heels of a 4.3 billion decrease in M-1 for the week ended June 1, this means the nation's money supply has fallen more than 12 billion dlrs in the past two weeks, economists said. "M-1 has hit an air pocket of weakness," said Bill Sullivan of Dean Witter Reynolds Inc. While M-1 may have lost its significance as an indicator of economic growth, Sullivan said Fed officials might be concerned the latest drop in M-1 means another month of sluggish growth in the broader monetary aggregates, M-2 and M-3, which are seen as better gauges of economic growth. Latest monthly M-2 and M-3 data showed that as of May, both measures were growing at rates below the bottom of the Fed's 5-1/2 to 8-1/2 pct target ranges. If money growth does not accelerate, Fed officials, concerned that this indicates economic growth is flagging, could turn toward easier monetary policy, economists said. "Does this mean that the Fed abandons its current open market position? No," Sullivan said. "But does this mean the end of tightening for the time being? Definitely yes." Economists said average adjusted discount window borrowings of 385 mln dlrs for the latest two-week bank statement period were lower than they had expected. Most believed the Fed had targetted a two-week borrowings average of around 500 mln dlrs. But they said that if it had not been for a large one-day net miss in the Fed's reserve projections, the higher borrowings target would probably have been reached. A drop in May U.S. Housing starts and continued weakness in auto sales show key sectors of the U.S. Economy are lagging, while a recent modest 0.3 pct gain in May producer prices has helped dispel inflation fears, Slifer said. "If this continues, we can entertain the notion of Fed easing at some point," he said. Other economists said the Fed would probably pay little attention to weak money supply growth. "It has been a number of years since M-1 has given good signs of what's going on in the economy," one said. "I don't think M-1 shows that the economy is falling apart and the Fed should ease." Economists agreed a stable dollar will continue to be a prerequisite for any move by the Fed toward easier monetary policy. They said the Fed is reluctant to lower short-term rates for fear this would spur expectations of a weaker dollar and higher inflation which would push up long-term yields and choke off econmomic growth. But Sullivan said the dollar has been steady since late April. "The Fed has to determine if this represents a fundamental change for the dollar. If it does, then this gives them more room to ease," he said. REUTER 18-JUN-1987 22:34:58.79 earn usa F f5142 reute b f BC-NATIONAL-SEMICONDUCTO 06-18 0067 SANTA CLARA, Calif., June 18 - Shr profit six cents vs loss 10 Net profit 8.1 mln dlrs vs loss 7.1 mln Sales 511.9 mln vs 397.8 mln Avg shrs 97.0 mln vs 90.5 mln YEAR Shr loss 38 cents vs loss 1.10 dlrs Net loss 24.6 mln dlrs vs loss 91.5 mln Sales 1.87 billion vs 1.48 billion Avg shrs 91.7 mln vs 89.8 mln NOTE - Current year figure includes previously announced 15 mln dlr restructuring charge. Figures include extraordinary credit from tax benefit of 4.2 mln dlrs in quarter vs 2.3 mln a year earlier and 4.2 mln for year vs 5.6 mln year earlier. The 1986 year net reflects 51.2 mln dlr gain from cumulative effect of accounting change. REUTER 18-JUN-1987 23:12:09.91 usa F f5168 reute u f BC-NATIONAL-SEMICONDUCTO 06-18 0104 SANTA CLARA, Calif., June 18 - National SemiConductor Corp, which earlier reported a profitable fiscal fourth quarter after a year ago loss, said it expects improved financial performance during its new fiscal year. The company reported a profit of 8.1 mln dlrs in the quarter ended May 31, after a loss of 7.1 mln dlrs in the year ago period. The company said orders for its core businesses have improved, adding "Our strong balance sheet and the improved business environment should enable us to improve our financial performance during our new fiscal year." The company said that during the fourth quarter both its semiconductor group and its information systems group had higher sales and improved operating performance than in the prior quarter and the year-earlier quarter. REUTER 18-JUN-1987 23:19:19.77 usa RM AI f5172 reute u f BC-OKLAHOMA-THRIFT-PLACE 06-18 0117 WASHINGTON, June 18 - The Federal Home Loan Bank Board (FHLBB) today placed <Investors Federal Bank> of El Reno, Oklahoma under receivership and transferred its 97.8 mln dlrs in assets to the <Investors Savings and Loan Association>. An FHLBB statement said the thrift was insolvent and "had substantially dissipated its assets," mainly by participating in large commercial real estate developments. It said it violated federal laws and regulations on loan documentation, loans to directors and conflict of interest. The sucessor organisation is a federal savings and loan to be managed under contract by Sunwood Management Corp of Parker, Colorado. REUTER 18-JUN-1987 23:26:43.72 japanusa F f5175 reute u f BC-MITSUBISHI-ELECTRIC-T 06-18 0114 TOKYO, June 19 - Mitsubishi Electric Corp <MIET.T> plans to assemble personal computers in the U.S. To counteract the imposition of a 100 pct import tax in April and a drop in profits due to the yen's appreciation against the dollar, a company spokesman told Reuters. It will assemble 16-bit MP-286 and 32-bit MP-386 desk-top computers at its wholly-owned computer and computer-related equipment sales unit <Mitsubishi Electronics America Inc> in Torrance, California at a rate if 10,000 a month, he said. This will include 2,000 TO 3,000 to be sold in the U.S. Under the Mitsubishi name, he said without giving more details. REUTER 18-JUN-1987 23:30:02.35 trade usasingaporebruneiindonesiamalaysiaphilippinesthailand RM V f5177 reute u f BC-SHULTZ-WARNS-ASEAN-OF 06-18 0100 SINGAPORE, June 19 - U.S. Secretary of State George Shultz warned members of the Association of Southeast Asian Nations (ASEAN) they could no longer rely on increased exports to the U.S. For growth. "Given the importance of exports, particularly export manufactures, to all of your countries, you are going to have to work hard to diversify your markets," he said. "While you may be able to maintain your current market share in the U.S., You clearly will not be able to look to the U.S. To take major increases in your exports," he added. Shultz told the foreign ministers of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand the U.S. Would cut its huge foreign trade deficit more rapidly than many now believed. He said ASEAN's looming trade problems would not necessarily stem from protectionist legislation now being contemplated by Congress, "but simply because of the adjustments the U.S. Economy will have to make in order to service our large and growing external debt." Shultz said the U.S. Deficit had resulted not from falling exports but from higher imports that had fuelled world growth. REUTER 18-JUN-1987 23:52:30.35 australia keatinghawke RM AI f5192 reute u f BC-AUSTRALIA'S-OPPOSITIO 06-18 0107 By Francis Daniel, Reuters SYDNEY, June 19 - The conservative opposition, already fighting an uphill election battle, now faces controversy in its own ranks over a possible error in its major tax cutting program, economists said. Professor Michael Porter, architect of the tax plan, declined to refute Treasurer Paul Keating's charge that the opposition miscalculated tax and expenditure cuts by several billion dollars. Economists said the opposition, trailing behind Labour in opinion polls, would find its chances further diminished if its tax policy was a miscalculation. The tax plan, unveiled by opposition leader John Howard last week, is the cornerstone of the Liberal Party's economic strategy to oust the Labour Party in the July 11 poll. Keating has said the Howard tax plan would sharply increase the budget deficit to more than nine billion dlrs and severely damage Australia's economy, already overburdened with balance of payments and foreign debt problems. In his mini-budget on May 13, Keating said the budget deficit for the year ending June 1988 would be between two and three billion dlrs. Porter, a key member of the opposition economic think tank, said he played a leading role in formulating the tax plan but not Howard's proposed expenditure savings, which Keating claimed were distorted through double counting. Some opposition members said there appeared to be errors, but a Liberal Party spokesman refused comment, saying the package was being reexamined. "The whole thing is so deceitful," Prime Minister Bob Hawke said in a radio interview. "Howard has made a mess of it. If they can't govern themselves, how can they expect to govern the country?" Hawke, who is seeking a third term, said the opposition had made the election one of the easiest for him. "I've never felt more physically and mentally relaxed (during an election). We've no problems at all," he said. The latest public opinion poll, published in the Melbourne Sun newspaper, showed Labour was leading the opposition by 12 points, indicating a 66-seat majority for Hawke in parliament. The Election Commission announced last night that 613 candidates would contest the 148-seat House of Representatives, while 255 candidates would fight for the 76 Senate seats. REUTER 18-JUN-1987 23:58:21.89 japan F f0001 reute u f BC-FUJITSU,-FUJIAN-PROVI 06-18 0108 TOKYO, June 19 - Fujitsu Ltd <ITSU.T> said it signed a joint venture agreement with the Post and Telecommunication Administration Bureau of Fujian Province (PTABF), China to develop and sell software for the Fujitsu-designed digital telephone switching machine FETEX-150. It said in a statement the joint company, <Fujian Fujitsu Communications Software Ltd> located in Fuzhou city, was capitalised at about 10 mln yuan and was owned 51 pct by PTABF and 49 pct by Fujitsu. It would create about 20 local jobs and has a target of annual software sales of 330 mln yen in 1992, Fujitsu said. REUTER 18-JUN-1987 23:59:08.26 japan F f0002 reute u f BC-MITSUI,-ALLIANCE-IN-F 06-18 0116 TOKYO, June 19 - <Mitsui Investment Management Co Ltd> (MIMCL) and <Alliance Capital Management International Inc> (ACMII) will sign an agreement late this month to cooperate in international fund management, a ACMII spokesman said. MIMCL, 55-pct controlled by affiliated companies of Mitsui Bank Ltd <MIBT.T>, will reconsign some of its foreign securities investment orders to ACMII, he told Reuters. ACMII, the London-based 100 pct-owned subsidiary of <Alliance Capital Management Corp> of New York, will reconsign some of its foreign orders to MIMCL and instruct MIMCL in international fund management techniques, the spokesman said. Both firms were among 56 investment advisory companies granted Japanese government approval for discretionary fund management on June 10, the Mitsui spokesman said. Alliance Capital Management Corp is the world's biggest firm devoted exclusively to fund management and has 35 billion dlrs in funds, he said. Mitsui Investment Co Ltd, established two years ago, controls about 800 mln dlrs, 80 pct of which is invested in Japanese equities. REUTER 19-JUN-1987 00:05:03.32 alum indonesia F M C f0006 reute u f BC-INDONESIA-RAISES-STAK 06-19 0107 JAKARTA, June 19 - Indonesia has increased its share in a 434-billion-yen aluminium smelter joint venture with Japan from 25 to 37 pct, Asahan Project Authority director A.R. Suhud said. The Japanese Export-Import Bank said Indonesia had raised its share of (P.T. Indonesia Asahan Aluminium) company, capitalised in 1975 at 91 billion, by swapping 32 billion yen in government loans to the company for an equity stake. The Japanese shareholders, the Overseas Economic Cooperation Fund and 12 companies, are to invest another 24 billion yen raising capitalisation to 147 billion yen. Asahan reported total losses of 97.6 billion rupiah between 1982 and 1985. Suhud said much of the company's 320 billion yen debt had been caused by falling tin prices and the appreciation of the yen against the U.S. Dollar. Aluminium is sold in dollars. Prices improved from 1,150 dlrs a tonne six months ago to about 1,450 dlrs today. The plant is supposed to break even if prices stay at 1,500 dlrs a tonne. Sahud said the plant, with a capacity of 220,000 tonnes a year, would probably lose money again in 1987. The plant, situated in North Sumatra, produces mostly for Japan. REUTER 19-JUN-1987 00:12:36.11 philippines F f0010 reute u f BC-PHILIPPINE-STOCKS-SOA 06-19 0094 By Greg Hutchinson, Reuters MANILA, June 19 - Investors on Philippine stock markets have shrugged off growing communist activity in the cities to push share prices to all-time highs on record turnover, brokers said. Regularly heavy trading of more than one billion shares a day has sent the Manila exchange's composite index soaring to 775.9 from 577.2 points in just over three weeks. Brokers described recent trading as "frantic" and "hectic" as trading records were smashed day after day. A total 2.6 billion shares worth 259.4 million pesos changed hands on the main Manila and the less important Makati exchanges yesterday, with much of the activity among centavo priced stocks, brokers said. The turnover was more than double the record of 1.1 billion shares worth 118.1 million pesos set on Wednesday. Brokers said rising gold prices caused mining shares to shoot up three weeks ago, and other sectors followed. Share prices continued their rise even when the gold price fell back to 450 dlrs an ounce, due to rising confidence in President Corazon Aquino's handling of the economy, they said. Brokers said Aquino's handling of the 18-year-old communist insurgency and the maintenance of relatively low interest rates also contributed to the rise. Blue chip stocks, such as those of San Miguel Corp and Philippine Long Distance Telephone Co (PLDT), have risen 25 pct in three weeks, and the trend is upward in the medium term although a temporary correction is overdue, they said. Since the surge began on May 26, Manila's Mining index has risen to 5,700.4 points from 4,042.4, its commercial and industrial index has shot up to 881.0 from 694.9 points, and the oils indicator has increased to 4.1 from 2.9 points. Market activity has been rising in spurts since Ferdinand Marcos was replaced by Aquino 16 months ago. One broker said he thought the Philippine stock market "may at last have come of age." Wilson Sy, president of Prudential Securities, a local stockbroking firm with Hong Kong affiliations, told Reuters, "Barring any unforeseen political events you can bet on the Philippine market. It has shrugged off the communist inroads into Manila." Assassins have killed 52 policemen, soldiers and security guards in the capital this year. Communist hitmen known as sparrows have claimed they killed 22 of them. Sy said Philippine stocks were undervalued in world terms with price-earnings ratios often half those in Hong Kong and one-sixth those in Japan. He said PLDT, which is also U.S. Listed, has a price-earnings ratio of about nine. Sy predicted Manila's composite index would rise beyond 1,000 points from its current 775.9 mark by year-end. Other brokers were more cautious, saying Aquino had to improve peace and order before investors could treat the Philippines as they would Hong Kong or Tokyo. One broker said he believed about 30 pct of the money going into stocks was now foreign, much of it from fund managers and their agents based in Hong Kong and New York. Manila Stock Exchange chairman Robert Coyuito told Reuters, "If the peace and order situation really improved the market could move beyond a price-earnings ratio of 20 times." "But all depends on how Congress performs and the local elections go," he said. A new two-chamber legislature was elected last month and is due to sit on July 27. Local elections are scheduled for November. PLDT shares closed at 630 pesos a share yesterday, 30 pesos above Wednesday's record close. PLDT share prices have risen about nine-fold in 18 months. San Miguel shares closed at 190 pesos, also a historic high, brokers said. REUTER 19-JUN-1987 01:04:05.45 canada RM AI f0043 reute u f BC-CANADIAN-TAX-REFORM-C 06-19 0103 By Larry Welsh, Reuters OTTAWA, June 18 - Canada's sweeping tax reform package, announced today, is an important step towards a fairer system, but is not as bold a revamp of the tax structure as some had expected, economists and business leaders said. "It's the biggest step towards tax reform we've taken in a great many years," Merrill Lynch Canada Inc chief economist Michael Manford told Reuters. "But the system is the same old system with a lot of important changes, as opposed to a brand new system," he added. (See spotlight index page on ECRA) Manford said changes introduced by Finance Minister Michael Wilson did not go far enough in simplifying the federal tax system. They represent evolutionary rather than revolutionary reform. "Overall, I thought that it was a more timid step than we were led to believe," he said. Wilson's move to increase money collected from corporations while cutting individual taxes "is probably an acceptable shift," said Bill James, president of Falconbridge Ltd, an international mining company. Wilson spread corporate tax increases fairly evenly across the corporate sector, James said. "So it's not going to hit anyone too hard and we will remain competitive." Wilson said in his speech to the House of Commons that Canada's tax system needed to be changed to compete with sweeping reforms in the United States last year. "The critical thing on the corporate side is that Wilson moved most of the taxes much closer to the U.S. System," Manford said. The federal government increased taxes paid by corporations by about five billion dlrs over the next five years, but lowered personal taxes by 11 billion dlrs in the same period. Despite collecting more corporate taxes, Wilson was able to lower the tax rate on individual companies by removing many special tax exemptions and broadening the tax base. Wilson's plan also reduced the capital cost allowance, used by companies to write off major investments, which some business spokesmen said will hurt business in the long run. "That will affect some investment decisions negatively," said Laurent Thiebeault, Canadian Manufacturers Association president. Tax analysts said for some industries it will take several days to assess the impact of the capital cost allowance reductions that will be made over a number of years. As anticipated, Canada's opposition parties signalled they intend to fight the new tax measures as they are introduced in Parliament over the next few months. "It's not tax reform, it's a tax grab," said Liberal leader John Turner. Turner labelled changes to the federal sales tax "a money machine for the minister of finance." Wilson broadened the federal sales tax to include additional products and also promised to introduce a broad-based, multi-staged sales tax. "It's not at all a fair package and Canadians are going to see that very quickly," New Democratic Party leader Ed Broadbent said. However, economist Manford said Wilson acted wisely to protect lower income Canadians by providing tax credits that will cut 850,000 people from the tax rolls. REUTER 19-JUN-1987 01:07:20.73 money-fxreserves taiwan RM AI f0050 reute u f BC-TAIWAN-DOLLAR-AND-RES 06-19 0086 By Chen Chien-Kuo, Reuters TAIPEI, June 19 - Recent government moves to curb capital inflow have temporarily helped to slow the rise of Taiwan's foreign exchange reserves and to stabilise the local dollar against the U.S. Currency, officials and bankers said. Central bank governor Chang Chi-Cheng told reporters the reserves rose only about 500 mln U.S. Dlrs in the past two weeks and the local dollar appreciated more slowly against the U.S. Dollar. Chang said, "The pace of increase in our reserves is much slower now than before and our currency is getting more stable." He said the reserves, mainly the result of the trade surplus with the U.S., Rose at the rate of two to three billion U.S. Dlrs a month between January and May. The reserves, the world's third largest after Japan and West Germany, now total well over 60 billion U.S. Dlrs. On June 2 the central bank froze overseas borrowings of local and foreign banks and cut the limit on central bank purchases of forward U.S. Dollars from banks to 40 pct from 90 pct of the value of a contract. Local and foreign bankers said the June 2 measures had drastically limited their ability to lend foreign exchange to importers and exporters. They said their overseas borrowings and forward dollar transactions showed a drastic decline with some banks registering a fall of up to 30 pct. Bank dealers said the Taiwan dollar has stabilised against the U.S. Currency this week after rising two to five Taiwanese cents a day between June 2 and 13 compared with a rise of five to eight cents in May. The bank dealers said the central bank, which had previously bought U.S. Dollars heavily, sold at least 1.1 billion U.S. Dlrs in the past two weeks to meet commercial demand. They said they expected the government to keep the local dollar stable in the near term to give breathing space to businesses experiencing slower exports because of the rise of more than 23 pct in the value of the Taiwan dollar since September 1985. The Taiwan dollar opened at 31.09 to the U.S. Dollar today, unchanged from yesterday. Keh Fei-Lo, vice president of First Commercial Bank, said, "It appears the central bank's move to curb the capital inflow is quite successful." Vice economic minister Wang Chien-Shien said the slower rise in foreign exchange reserves would help ease pressure from Washington over the large U.S. Trade deficit with Taiwan. Over the past year Taiwanese businessmen have delayed imports of machinery and production equipment because of exchange rate uncertainty, he said. The stable exchange rate would help boost imports, particularly from the United States. REUTER 19-JUN-1987 01:23:58.25 alum japanindonesiabrazil RM AI f0063 reute u f BC-JAPAN-APPROVES-AID-FO 06-19 0112 TOKYO, June 19 - Japan's cabinet approved a plan to help financially-troubled aluminium ventures in Indonesia and Brazil, an official at the Ministry of International and Trade Industry (MITI) said. Japan will invest 24 billion yen in <PT Indonesia Asahan Aluminium> in addition to the 68.3 billion yen already invested in the company. The government and private interests will equally share the additional investment, he said. They will also provide equal shares in 6.3 billion yen in new investment in the Albras Amazon aluminium project in Brazil, in addition to the 45.7 billion yen already invested. The Japan Export-Import Bank will cut its rates on loans to Asahan and Albras to about five pct from about seven pct, the official said. Interest rates on loans by Japan's private banks to the two projects are expected to be reduced to around five pct from the current seven to eight pct, but an agreement has yet to be reached, industry sources said. Under the rescue scheme for Asahan, in which 91.1 billion yen has been invested, Indonesia will also extend another 32 billion yen to the company. This will raise Indonesia's investment ratio to about 40 pct from the current 25 pct. The Brazilian government has already agreed to invest an additional 6.5 billion yen in Albras, in which investment now totals 93.2 billion yen, but its stake will not change from 51 pct, the official said. The sources said the rescue programs for the two projects were larger than earlier expected, reflecting Japan's desire to help develop the economies of Indonesia and Brazil and to stabilise sources of aluminium. Japan depends on imports for more than 90 pct of its aluminium demand, which totals some 1.8 mln tonnes a year, they said. REUTER 19-JUN-1987 01:38:31.06 acq japanusa F f0069 reute u f BC-MITSUI-BUYS-FIVE-PCT 06-19 0104 TOKYO, June 19 - Mitsui and Co Ltd <MITS.T> paid 1.5 mln dlrs in early May for a five pct stake in <Zoran Corp>, a California-based maker of large scale integrated circuits (LSI) with computer graphic, communications and medical applications, a Mitsui spokesman told Reuters. He said the two firms will form a marketing company in Japan as early as next year, although details of the joint venture are not yet fixed. Mitsui expects last year's 10 billion yen Japanese LSI market to grow quickly. Zoran was founded in 1981 and now has about 100 employees, he said. REUTER 19-JUN-1987 01:59:21.71 japan F f0081 reute u f BC-JAPAN-REPORT-SAYS-FAU 06-19 0100 TOKYO, June 19 - Faulty repairs and inadequate inspection caused the 1985 crash of a Japan Airlines Co Ltd <JAPN.T> (JAL) Boeing 747 which killed 520 people, the Japanese government said in a final official report. The clear cause of the crash was faulty repair work by the Boeing Co <BA>, said Shun Takeda, the ministry of transport official leading the accident investigation committee. But the report also criticised the ministry's inspectors for failing to carry out a full check of the repairs before signing the clearance sheet. The aircraft hit Mount Osutaka, north of Tokyo, on August 12, 1985, after a bulkhead separating the pressurised cabin from the unpressurised tail suddenly burst, fracturing key navigation systems. Only four people survived. A Japan Air Lines spokesman declined comment on the report. Boeing is expected to release a statement later today. The report cleared the JAL crew of all responsibility. In a separate set of recommendations, the investigators said large aircraft operating in Japan should have fail-safe systems, but did not say how this should be done. A press statement by a group of lawyers representing victims of the crash criticised the report for not dealing in greater depth with the fail-safe aspect. The lawyers said Boeing had showed it believed the crash was due to design defects by specifying two design modifications to prevent a recurrence in a memorandum filed in King County, Washington, Superior Court last March 24. They said similar official recommendations for fail-safe systems following two air disasters involving DC-10 aircraft, near Paris in 1974 and at Chicago in 1979, had been rejected after objections from aircraft manufacturers. The government investigators asked the ministry to formulate concrete guidelines for its inspectors. An internal ministry memo earlier this year complained that inspectors were left too much on their own when making aircraft checks. A Boeing team made repairs to the aircraft's aft bulkhead under JAL supervision, and Transport Ministry inspectors approved the repairs without actually seeing them, today's report said. The inspectors were unable to check Boeing's work because the part repaired had been covered by a seal, the report said. Over time, cabin pressurisation speeded up the process of metal fatigue in the repaired bulkhead. Boeing issued an official statement on September 6, 1985, saying the 1978 repairs it had carried out were faulty. It did not link them with the crash. REUTER 19-JUN-1987 02:05:48.53 trade japan RM AI f0088 reute u f BC-JAPAN'S-JUNE-INTERIM 06-19 0095 TOKYO, June 19 - Japan's custom-cleared trade surplus narrowed to 1.61 billion dlrs in the first 10 days of June from 1.97 billion a year earlier, the Finance Ministry said. The June interim surplus compares with a 1.76 billion dlr surplus in the same May period. FOB exports in the first 10 days of June rose 17.6 pct from a year earlier to 6.05 billion dlrs while CIF imports rose 39.6 pct to 4.44 billion. The average yen/dollar rate used for the figures was 141.04 yen against 169.03 a year earlier. REUTER 19-JUN-1987 02:45:16.79 earn japan F f0106 reute u f BC-C.-ITOH-AND-CO-LTD-<C 06-19 0046 TOKYO, June 19 - Year ended March 31 Group shr 18.83 yen vs 18.73 Net 20.07 billion vs 18.47 billion Pretax 22.14 billion vs 25.36 billion Operating 37.57 billion vs 51.57 billion Sales 14,762 billion vs 15,900 billion REUTER 19-JUN-1987 03:01:42.04 japan RM AI f0119 reute u f BC-JAPAN-MACHINERY-ORDER 06-19 0103 TOKYO, June 19 - Japan's private sector machinery orders, excluding shipbuilding, fell 10.4 pct in April from March to a seasonally adjusted 663.8 billion yen, after rising 17.6 pct in March, the government's Economic Planning Agency said. April orders rose 2.0 pct from a year earlier after a 22.6 pct year-on-year rise in March, an agency spokesman told Reuters. Seasonally adjusted private sector orders, excluding those for shipbuilding and electric power firms, fell 7.5 pct in April from March to 517.4 billion yen, after a 5.7 pct rise in March from February. April orders fell 1.3 pct from a year earlier after being unchanged in March. The April drop was due mainly to a 12.9 pct decrease in orders from machine tool industries and a 15.3 pct drop in orders from car makers, the spokesman said. REUTER 19-JUN-1987 03:53:39.82 japanusa RM AI f0189 reute u f BC-U.S.-SEEKS-JAPAN-HELP 06-19 0090 By Rich Miller, Reuters TOKYO, June 19 - Senior U.S. Officials are looking to Japan for help in buttressing the world economy in the event of an American recession next year, Japanese government sources said. During a visit to the U.S. Earlier this month, Economic Planning Minister Tetsuo Kondo was asked by both U.S. Federal Reserve chairman Paul Volcker and Council of Economic Advisers chairman Beryl Sprinkel what Japan could do if the U.S. Enters recession next year. Although Sprinkel indicated that he personally did not expect a recession next year, Volcker seemed to acknowledge that an economic downturn was at least a possibility, the sources said. Faced with with a huge budget deficit, the U.S. Has little room to manoeuvre on fiscal policy to counteract any downturn that might occur in 1988. It is also hamstrung as far as monetary policy is concerned because U.S. Inflation is already showing some signs of picking up, one source said. But Japan is also limited in what action it could take to help counteract a U.S. Recession without running the risk of overstimulating its domestic economy and pushing up inflation, the sources said. Money supply growth is accelerating and interest rates are at record low levels. In May, M-2 money supply plus certificates of deposit grew at a year-on-year rate of 10.2 pct, well above nominal GNP growth of four to five pct. Some government sources are also worried that the recently announced 6,000 billion yen emergency economic package could push up land prices and the construction sector's inflation. Public investment spending grew at a year-on-year rate of about 10 pct in April, but that could accelerate to 20 pct later this year under the impact of the emergency package, one source said. The 6,000 billion yen package was generally well received in the U.S., Although U.S. Congressmen and businessmen told Kondo they wanted the measures implemented quickly, sources said. The Japanese minister explained that the acceleration of public works spending in the package was taking place immediately, they said. U.S. Congressmen were particularly interested in how much impact the package would have on reducing the bilateral trade imbalance, a question which Kondo was unable to answer clearly, given the many economic uncertainties involved, the sources said. While recognizing that Japan's trade surplus is falling in terms of volume, some Congressmen expressed concern that it was not falling fast enough. But the sources said no one pressed Kondo for a further rise of the yen as a solution to correcting the bilateral trade imbalance. REUTER 19-JUN-1987 03:59:02.90 acq F f0194 reute f f BC-Sainsbury's-says-it-t 06-19 0013 ****** 19-JUN-1987 04:08:37.39 japanindonesiabolivia RM AI f0206 reute u f BC-JAPAN-TO-MAKE-LOANS-T 06-19 0085 TOKYO, June 19 - Japan will lend 27.17 billion yen to Indonesia and will share equally with the World Bank a 7.25 billion yen loan to Bolivia as part of its efforts to help Third World countries, a Foreign Ministry spokesman said. The lending is in line with Japan's plan to contribute 20 billion dlrs over the next three years to developing countries. Both loans will be used for development, the spokesman told Reuters. He declined to name terms. REUTER 19-JUN-1987 04:11:27.72 acq uk F f0207 reute b f BC-SAINSBURY'S-TAKING-CO 06-19 0104 LONDON, June 19 - J Sainsbury Plc<SNB.L> said it agreed to take control of the U.S. Shaw's Supermarkets Inc through a combination of share purchases and a tender offer at 30 dlrs a share. Sainsbury bought about 21 pct of the stock in 1983. It said its U.S. Subsidiary, Chene Investments Inc, bought 2.55 mln common shares from the controlling Davis family yesterday at 30 dlrs a share for 76.5 mln dlrs, lifting its stake to 49.4 pct. A tender offer for the outstanding shares will be launched, also at 30 dlrs a share for a maximum further cost of 184.4 mln. The Shaw's Board and the Davis family has agreed to accept the offer, thus assuring Sainsbury's a total holding of 74.0 pct. The company had allotted 20.18 mln new ordinary shares to <Warburg Securities Ltd> which it said would be sufficient to finance about 188 mln dlrs of the maximum 261 mln dlrs payable. Shaw's operates a chain of 49 supermarkets in Massachusetts, Maine and New Hampshire which in 1986 produced sales of 1.1 billiob dlrs and pretax profit of 31.1 mln. At the end of 1986 it had net assets of 88 mln dlrs. Last September, Sainsbury's increased its stake in Shaw's to 28.5 pct. In the year to March 21, it reported a rise in pretax profit to 246.9 mln stg from 192.7 mln on sales that increased to 4.04 billion from 3.58 billion. Sainsbury shares had fallen five pence before the announcement to 590p from last night's close but were unmoved by news of the deal. REUTER 19-JUN-1987 04:20:47.11 japan F f0223 reute u f BC-C.-ITOH-SEES-NO-GROWT 06-19 0108 TOKYO, June 19 - C. Itoh and Co Ltd <CITT.T> said its group net profit in the year ending March 31, 1988, is expected to be unchanged from a year earlier. The prediction assumes a yen/dollar rate of 140 yen and a crude oil price of 18 dlrs a barrel, a company spokesman told Reuters. Sales in 1987/88 are estimated at 15,100 billion yen, up 2.3 pct from a year earlier. The company earlier reported group net profit of 20.07 billion yen in the year ended March 31, 1987, up 8.6 pct from a year earlier, helped by a drop in sales and administration costs and reduced interest charges. REUTER 19-JUN-1987 04:25:32.92 uk F f0231 reute r f BC-UBS-TO-SELL-25,000-SA 06-19 0065 LONDON, June 19 - Union Bank of Switzerland (Securities) Ltd said it is lead managing the sale of 25,000 new bearer shares of Sandoz Ltd. The shares closed in Zurich yesterday at 12,100 Swiss francs each. Final terms will be set on, or before, June 25. The selling concession is two pct while management and underwriting each pays 3/4 pct. REUTER 19-JUN-1987 04:25:41.52 earn japan F f0232 reute u f BC-ISUZU-MOTORS-LTD-<ISU 06-19 0066 TOKYO, June 19 - Parent shr loss 15.85 yen vs profit 2.02 Interim div nil vs nil Net loss 12.92 billion vs profit 1.65 billion Current loss 12.52 billion vs profit 4.44 billion Operating loss 8.76 billion vs profit 6.52 billion Sales 443.90 billion vs 528.03 billion Outstanding shrs 815.10 mln vs 814.97 mln REUTER 19-JUN-1987 04:31:03.46 japan F f0237 reute u f BC-ISUZU-DENIES-PLANS-TO 06-19 0091 TOKYO, June 19 - Isuzu Motors Ltd <ISUM.T> has no plans to import cars made by General Motors Corp <GM.N> to Japan, an Isuzu spokesman told Reuters. The Japanese daily Yomiuri Shimbun reported that Isuzu had decided to import cars directly from GM. Each month Isuzu's domestic distributors sell five to 10 cars from GM's Buick, Chevrolet, and Oldsmobile range. The cars are supplied by Yanase and Co Ltd, a Japanese importer and distributor. Isuzu is owned 38.6 pct by GM. REUTER 19-JUN-1987 04:34:24.03 shipgrain bangladesh G f0241 reute u f BC-BANGLADESH-NAVY-UNLOA 06-19 0100 CHITTAGONG, Bangladesh, June 19 - The navy is unloading foodgrains at Chittagong port following a strike by nearly 1,000 dockworkers, Bangladesh Shipping Corp officials said. The navy was unloading 74,000 tonnes of foodgrains from two ships today, and four vessels laden with some 90,000 tonnes of grains were waiting at the outer anchorage, port officials said. A spokesman for the workers said they would continue their strike until authorities agree to their demands for higher pay and other benefits. The strike began on June 11. "Unloading of grains and other essential commodities started normally after we called in navy personnel to help," a port official told Reuters. "The strike has caused no serious dislocation," he said. The government meanwhile declared the port jobs an "essential service" and said the strikers could be dismissed unless they end the strike soon. REUTER 19-JUN-1987 04:37:40.72 japan F f0246 reute u f BC-FUJITSU-DEVELOPS-FAST 06-19 0107 TOKYO, June 19 - Fujitsu Ltd <ITSU.T> has developed a simulation processor which will operate faster than any computer and will speed development of the next generation of computers, a spokesman told Reuters. The simulation processor will halve the time needed for fault testing the millions of basic logic circuits incorporated in the latest computers, he said. It can simulate the operation of as many as 530 mln logic elements a second if a maximum of 64 processors are interconnected. The simulation processor, which took four years to develop, will not be marketed, he said. REUTER 19-JUN-1987 04:59:33.75 oilseedsoybean taiwanusa G f0273 reute u f BC-TAIWAN-BUYS-32,000-TO 06-19 0085 TAIPEI, June 19 - The joint committee of Taiwan's soybean importers awarded a contract to Cargill Inc of Minneapolis, Minnesota, for supply of one 32,000 tonne cargo of U.S. Soybeans, a committee spokesman told Reuters. The cargo, priced at 249.10 U.S. Dlrs per tonne c and f Taiwan, is set for delivery before July 7, he said. The committee cancelled a tender for another cargo because the prices offered by U.S. Suppliers were too high, he added. REUTER 19-JUN-1987 05:08:38.45 japanusa RM AI f0286 reute u f BC-JAPAN-LIFE-INSURERS-W 06-19 0098 TOKYO, June 19 - The chairman of the Life Insurers Association told a press conference that life insurance companies will increasingly diversify their investments away from U.S. Bonds to protect themselves against currency swings, an association spokesman said. Terumichi Tsuchida said Japanese investment in U.S. Bonds is decreasing, but not drastically, Life insurers are increasingly placing some of their funds in other currencies, including bonds in Canadian dlrs and in European currencies, he told the conference. REUTER 19-JUN-1987 05:09:06.97 grainrice japan G f0287 reute u f BC-AGENCY-HEAD-SAYS-JAPA 06-19 0113 TOKYO, June 19 - The government should cut its consumer rice price if the official producer price is reduced next month, Tetsuo Kondo, director general of the government's Economic Planning Agency (EPA), told reporters. Kondo said after a cabinet meeting that consumers should receive the benefits of the falling costs of rice farming due to the strong yen and lower oil prices. Agriculture Ministry sources said the producer rice price paid to rice farmers would be cut after discussions by the Rice Price Council, an advisory body to the ministry, on July 1 and 2. The consumer rice price is usually set in December. REUTER 19-JUN-1987 05:12:20.66 japan F f0290 reute u f BC-BOEING-HAS-NOT-YET-SE 06-19 0104 TOKYO, June 19 - Boeing Co <BA> said in a statement it has yet to see the official Japanese government report on the crash of a Japan Air Lines (JAL) Boeing 747 in which 520 died. However, it said it had agreed with an earlier draft report that the accident was caused by incorrect repairs which remained undetected during scheduled inspections. The final report, released today, said faulty repairs to the plane in 1978 by Boeing and inadequate inspection by Transport Ministry inspectors caused the 1985 crash, the worst single air disaster in aviation history. Boeing said it did not believe a similar accident could occur under any foreseeable operating conditions but said it had made tests and provided equipment for new planes and for planes already in service to ensure it could not happen again. REUTER 19-JUN-1987 05:13:39.20 money-fxdlryenbopgnp japan RM AI f0292 reute u f BC-JAPAN-PANEL-URGES-WOR 06-19 0098 TOKYO, June 19 - Japan could avoid a sharp rise in the value of the yen against the dollar if Japan, the U.S. And other nations succeeded in restructuring their economies, an advisory panel to the government's Economic Planning Agency (EPA) said. The advisory body said in its report that the yen would soar against the dollar if structural adjustments on a global basis were delayed. An EPA official told Reuters the dollar could fall to slightly below 100 yen by 1993 if Japan and the U.S. Failed to restructure their economies. The dollar's fall without structural adjustments would cut Japan's current account surplus to two pct of gross national product (GNP) in 1993, the report said. It said such a change would slow real GNP growth to an average of two pct annually during the seven-year period to 1993. If the two nations restructured their economies, the dollar would remain stable in real terms, while reducing Japan's current-account surplus to 2.1 pct of GNP in 1993. This scenario put Japan's GNP growth at 3.5 pct a year. It forecast real growth of three pct for the world economy and four pct for Japan by 2,000 if the adjustments were made. REUTER 19-JUN-1987 05:28:26.43 trade japan RM AI f0319 reute u f BC-JAPAN-MUST-TRY-HARDER 06-19 0110 TOKYO, June 19 - Japan must try harder to reduce its trade surplus or the yen will come under renewed upward pressure, Economic Planning Minister Tetsuo Kondo. He told a press luncheon he hoped Japan could cut its current account surplus by some 10 billion dlrs a year until it is reduced to some 50 to 60 billion dlrs. In the fiscal year ended March 31 the surplus totalled 93.76 billion dlrs, or about 4.5 pct of GNP. The 6,000 billion yen economic stimulation package the government unveiled late last month would help slash Japan's current account surplus by five to six billion dlrs, he said. REUTER 19-JUN-1987 05:30:26.85 switzerland RM f0322 reute u f BC-SWISS-URGE-CLOSING-LO 06-19 0114 BERNE, June 19 - The loopholes in Swiss banking supervision must be closed in a step-by-step manner, Swiss National Bank Vice-President Markus Lusser said. The integration of financial markets had blurred the distinction between banks and bank-like finance companies, and the varying degree of regulation of the two sectors had a destablizing effect, he told the Association of Foreign Banks. "It is in the interest of all market participants that these institutes (finance companies) be brought as soon as possible under banking supervision," he said in remarks prepared for delivery to the association's annual meeting. It was important, however, that bringing finance companies under the banking law did not undermine Switzerland as a financial marketplace, Lusser said. "It is decisive for its future that it succeeds in attracting and holding a wide variety of banks, financial intermediaries and financial experts," he said. Lusser also urged greater harmonization of regulatory practice with other countries in view of the integration of world markets and the internationalization of the banking business. REUTER 19-JUN-1987 05:32:14.16 japan F f0326 reute u f BC-TOKYO-STOCKS-SEEN-HEA 06-19 0101 TOKYO, June 19 - The Tokyo stock market will probably not make significant gains next week and may suffer a temporary correction, brokers said. Dashed hopes of a further cut in Japan's 2.5 pct discount rate cut and a growing conviction the dollar will remain firm against the yen in the near-term has created a measure of uncertainty over the market's future, brokers said. "Everybody is just trying to think through things and see exactly what is going on," said a broker at Sanyo Securities Co Ltd. "There is a lot of confusion," he added. This uncertainty was spotlighted by violent swings in stock prices over the last two days. Today the 225-share average ended 462.43 points lower at 25,288.12. "People expect a correction next week. They don't care if the market falls to 24,000," the Sanyo broker said. "There is always enough money waiting to get into the market to fill any correction." Tokyo stock prices owe a major part of their two-year bull run to repeated cuts in the discount rate, which diverts money from bank deposits to the stock market and cuts the cost of borrowing, boosting domestic demand and imports. "Fund managers are restructuring their investment portfolios to sell domestic-related issues and include a few more exporters," said Prudential Bache Securities' Hank Sawa. Tokyo-based foreign exchange dealers predict the dollar is unlikely to fall sharply in the near term, thus convincing stock market investors to buy electronics, precision instrument, machinery and some other export-oriented manufacturing shares, brokers said. "Some people are awaiting the results of proposed protectionist U.S. Trade legislation in July for clues to the currency direction," a broker at Daiwa Securities Co Ltd said. REUTER 19-JUN-1987 05:37:39.86 tin thailand F f0338 reute u f BC-THAI-SMELTER-FACES-TI 06-19 0114 BANGKOK, June 19 - Thailand's major tin exporter and producer <Thailand Smelting and Refining Co> (Thaisarco) said it may be unable to meet all its overseas orders because of insufficient supplies of tin concentrates from Thai mines. Local mines cut combined daily tin concentrate sales to Thaisarco, a Royal Dutch/Shell Group <RD.AS> unit, to less than 20 tonnes earlier this month from a previous 40 to 45 tonne average, commercial manager Yoot Eamsa-ard told Reuters. He said the cuts resulted from a government decision to let the temporary business and municipal tax reductions on exported tin lapse on June 3. The taxes, levied on the tin mines, rose to 4.4 pct this month from 1.1 pct ad valorem over the past year. The lower levels had been introduced last year as a temporary move to aid the tin industry after prices collapsed in late 1985. Yoot said Thaisarco had to dig into its stocks to meet a large portion of new overseas orders which were averaging 100 tonnes per day. As a result, he said, Thailand could fail to fill some 3,000 tonnes of its 19,000 tonne tin export quota allocated by the Association of Tin Producing Countries (ATPC) for the year ending February 1988. Reduced tin exports this year could cause the ATPC to allocate a lower quota next year, Yoot said. The supplies shortage should prove temporary, however, because the Thai cabinet is expected to review a Mineral Resources Department proposal to reinstate the low taxes late this month, Yoot said. The department said Thailand exported 7,715 tonnes of tin during January/May compared with 8,462 tonnes a year ago. REUTER 19-JUN-1987 05:43:47.90 japan F f0347 reute u f BC-OLYMPUS-SEES-12-PCT-R 06-19 0105 TOKYO, June 19 - Olympus Optical Co Ltd <OOPT.T> predicted parent company current profit of 5.50 billion yen in the year ending October 31, 1987, up 12 pct from a year earlier, assuming a yen/dollar rate of 147 yen in the second half, a company spokesman told Reuters. Sales in 1986/87 are estimated at 122 billion yen, up 0.9 pct from a year earlier. But net profit will fall 71.7 pct to three billion yen in 1986/87 from a year earlier when the company made a 10.59 billion net profit due to sales of real estate assets worth seven billion yen, the spokesman said. The precision instrument maker will retain 13 yen dividend for 1986/87, the spokesman said. It earlier reported parent company net profit of 1.34 billion yen in the six months ended April 30, down 85.5 pct from a year earlier, on sales of 60.92 billion, down 0.1 pct. The poor net was mainly due to a fall to 45 mln yen in extraordinary profit in the first half, against 7.70 billion of such profit a year earlier, due mainly to sales of assets. The drop in first half sales was due to the yen's rise against the dollar, which cut sales by some 4.30 billion yen. The dollar averaged 157 yen, against 192 a year earlier. REUTER 19-JUN-1987 05:44:54.21 japan F f0349 reute u f BC-ISUZU-SEES-BIGGER-LOS 06-19 0099 TOKYO, June 19 - Isuzu Motors Ltd <ISUM.T> forecast a parent company net loss of 15 billion yen in the year ending October 31, 1987 against a 3.98 billion loss a year earlier, assuming a yen/dollar rate of 140 yen, a spokesman said. Sales in 1986/87 are estimated at 910 billion yen, down 10.2 pct from a year earlier. The automaker earlier reported a parent company net loss of 12.92 billion in the six months ended April 30, 1987, against a 1.65 billion yen profit a year earlier, on sales of 443.90 billion, down 15.9 pct from a year earlier. The poor first half performance was due to the yen's rise against the dollar which cut 84.27 billion yen off sales, the spokesman said. The average yen/dollar rate rose to 158 yen in the first half from 207 a year earlier. First half car exports fell to 68,445 from 82,093 a year earlier, mainly due to drop in exports to the U.S., While domestic sales rose to 30,643 from 29,836. Truck exports fell to 108,782 from 127,903 because a two-year contract to sell a total of 40,000 trucks to China ended last year and domestic sales fell to 55,925 from 61,954. The company estimated sales at 207,000 cars in 1986/87, down 5.2 pct from a year earlier, and 339,000 trucks, down 9.8 pct, the spokesman said. He gave no estimate of exports. REUTER 19-JUN-1987 05:48:32.48 france F f0355 reute u f BC-TELEMECANIQUE-SEES-ST 06-19 0111 PARIS, June 19 - French electronics group La Telemecanique Electric <TLMF.PA> expects 1987 consolidated profits to remain steady on 1986 levels, allowing the company to pay a higher dividend this year, chairman Jacques Valla told the company's general meeting. Valla said the outlook for 1987 was good and orders for the group would increase by at least seven pct. Telemecanique posted a consolidated net profit of 236.8 mln francs in 1986, compared to 215.1 mln in 1985, on turnover of 6.28 billion francs compared to 6.10 billion. The group paid a dividend of 57 francs, compared to 52.50 francs. REUTER 19-JUN-1987 05:50:22.49 crude sri-lankauae Y f0358 reute u f BC-SRI-LANKA-PLANS-TO-RE 06-19 0106 COLOMBO, June 19 - Ceylon Petroleum Corp (CPC) has decided to renew its one-year contract with Abu Dhabi for 480,000 tonnes of Upper Zakum crude oil, CPC officials told Reuters. They said CPC made the recommendation to the cabinet and is now awaiting its approval. CPC's one-year contract with Abu Dhabi expired on May 31 this year and it wants the renewed contract to begin on June 1 at the government selling price. Delivery will be determined in the course of the year. Last year, shipments were in three parcels of 120,000 tonnes each and four of 30,000 tonnes each. CPC officials also said the company agreed with the Egyptian government for the supply of 240,000 tonnes of Gulf of Suez crude for delivery in two shipments this year at the government selling price. Last year, CPC bought 120,000 tonnes Gulf of Suez through C.Itoh. Officials said plans to buy 240,000 tonnes of Basra Light from Iraq have not been finalised yet because of several constraints. CPC said it could not accept 120,000 tonne parcels and proposed to lift 30,000 tonnes in eight shipments. Iraq National Oil Co (INOC) told CPC a Red Sea port where lifting was to take place could not accept small ships. INOC then proposed to deliver eight shipments of 30,000 tonnes each. CPC said INOC planned to ship the oil to an Indian port for delivery of Indian requirements, later going to Colombo to offload CPC's needs, but CPC considered this unsuitable. CPC said it had not received a reply from INOC since December. Sri Lanka imports all its annual needs of 1.7 mln tonnes. This year it plans to buy 400,000 tonnes on the spot market compared with about 1.3 mln tonnes last year. REUTER 19-JUN-1987 05:57:11.78 spain F f0364 reute u f BC-SPAIN'S-PRIVATE-BANK 06-19 0087 MADRID, June 19 - Spain's private bank staff started a one and a half day strike over wage demands but its impact was not yet clear. Spokesmen for several of the main banks said strikers at their Madrid headquarters appeared to be a small minority. They had yet to receive reports from branches. Unions called out the 160,000 employees to press for cuts in working hours and an eight pct wage rise. Banks implemented a 4.75 pct wage increase last month. REUTER 19-JUN-1987 05:57:52.15 norwayussr F f0365 reute u f BC-NORWEGIANS-MAY-HAVE-S 06-19 0091 OSLO, June 19 - The Norwegian company <Konsgberg Vaapenfabrikk> (KV) may have sold more high technology defence equipment since an original deal in 1982, senior justice officials said. State prosecutor Tor-Aksel Busch told Reuters he had started fresh investigations into the state-owned arms firm which delivered computers to the Soviet Union in 1982 and 1983, used to make near-silent submarine propellers. "There may have been other deliveries of the same equipment since then," he said. Reuter 19-JUN-1987 05:59:22.10 japanargentina RM AI f0370 reute u f BC-JAPANESE-BANKS-CONFIR 06-19 0101 TOKYO, June 19 - Japanese commercial creditor banks confirmed an earlier commitment to extend some 360 mln dlrs in new loans to Argentina, banking sources said. The commitment will represent a part of the 1.95 billion dlrs in new loans to Argentina agreed to by 350 banks worldwide last April 24, the sources said. The 350 banks were supposed to confirm their Argentina loan commitments by June 17. About 91 pct of them have already done so, but it may take some more time before all have confirmed their intentions, the sources added. REUTER 19-JUN-1987 06:08:20.59 ship taiwan F f0387 reute u f BC-TAIWAN'S-EVERGREEN-LI 06-19 0090 TAIPEI, June 19 - Liner shipping specialist <Evergreen Marine Corp>, Taiwan's largest private company, has applied to the Security and Exchange Commission to go public next month, a company spokeswoman told Reuters. She said Evergreen had doubled its capital to eight billion Taiwan dlrs since last August. "The capital increase will boost our operations," she said. She said Evergreen will use the funds raised from the stock market to buy new ships and step up its global services. The spokeswoman said the company posted an after-tax profit of more than one billion dlrs last year on total revenues of 20.46 billion, compared to an after-tax profit of 1.18 billion on revenues of 17.99 billion in 1985. Evergreen has placed newbuilding orders for three 3,428-teu (twenty-foot equivalent unit) fully cellular container ships with the state-owned <China Shipbuilding Corp> for delivery in late 1988. Evergreen has a fleet of 66 container vessels, totalling more than two mln dwt, the spokeswoman said. REUTER 19-JUN-1987 06:12:09.87 switzerlanduk F f0391 reute u f BC-CIBA-GEIGY-BUYS-MINOR 06-19 0098 BASLE, Switzerland, June 19 - Ciba-Geigy AG <CIGZ.Z> said it acquired a minority stake in British cereal breeding company <New Farm Crops Ltd>. It said in a statement the British company's skills in applied plant breeding would assist Ciba-Geigy in applying the results of its biotechnology research and enable it to extend its activities in seeds to crops such as wheat and barley. New Farm Crops of Horncastle, Lincolnshire, will have access to Ciba-Geigy's agricultural research resources, especially in biotechnology. REUTER 19-JUN-1987 06:25:17.07 gnpbop south-africa RM f0399 reute u f BC-S.-AFRICAN-RESERVE-BA 06-19 0114 JOHANNESBURG, June 19 - South Africa recorded annualised real growth in GDP of 3.25 pct in the first quarter of this year and the economy should achieve the government's target of three pct growth for 1987, the Reserve Bank said. The South African central bank said in its quarterly bulletin that confidence in the economy improved from January to May 31 because of the higher gold price, a rise in the nation's gold and foreign currency reserves and an improvement in the rand's exchange rate to just under 50 U.S. Cents. It noted the growth rate had slowed from 4.5 pct in the third and fourth quarters of last year. It also cited a three year debt recheduling agreement reached with international creditors in March as evidence of improved foreign perceptions of the South African economy. The accord effectively extends a moratorium on most repayments of 13 billion dlrs of South Africa's short term foreign debt. Total foreign debt is 23 billion dlrs. South Africa recorded a seasonally adjusted annualised surplus on the current account of the balance of payments of 7.43 billion rand in the first quarter, compared with a surplus of 7.24 billion rand in 1986. The bank said it was the ninth consecutive current account surplus since the start of 1985. REUTER 19-JUN-1987 06:30:02.79 australia RM f0406 reute b f BC-WORLD-BANK-ISSUES-100 06-19 0081 LONDON, June 19 - The World Bank is issuing a 100 mln Australian dlr bond due July 20, 1992 paying 13-3/8 pct and priced at 101-7/8 pct, lead manager Hambros Bank Ltd said. The non-callable bond is available in denominations of 1,000 and 10,000 Australian dlrs and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is July 20. REUTER 19-JUN-1987 06:39:58.09 ipi netherlands RM f0417 reute u f BC-DUTCH-INDUSTRIAL-PROD 06-19 0087 THE HAGUE, June 19 - Dutch seasonally adjusted industrial production fell by 6.4 pct in April compared with the previous month, and was 5.5 pct down on the same period last year, figures from the official Statistics Bureau CBS show. The April index, base 1980, stood at 103. In March, industrial production rose by 2.8 pct from February. The unadjusted April index figure fell 14 pct from March to 104, compared with a 10 pct rise in March over February. REUTER 19-JUN-1987 06:47:42.42 uk RM f0424 reute b f BC-U.K.-BUILDING-SOCIETY 06-19 0086 LONDON, June 19 - Net receipts of U.K. Building societies in May fell to 521 mln stg from 727 mln in April and compared with 500 mln in May 1986, figures from the Building Societies Association show. Association director-general Mark Boleat said in a statement he was satisfied with the May figure in view of the calls for investors funds' generated by the privatisation of Rolls-Royce Plc and the approaching second call on the partly-paid British Gas Plc shares. Boleat said the recently announced cut in mortgage rates suggests a continuation of buoyant demand. He noted that building society net receipts usually decline seasonally as summer approaches. The British Gas second call fell on June 9, affecting building society inflows in both May and June. Gross retail receipts in May, unadjusted for withdrawals, were 7.46 billion stg against 6.63 mln in April and 5.60 billion in May last year. The net inflow of funds from the wholesale market in May was 317 mln stg against 188 mln in April and 249 mln in May 1986. REUTER 19-JUN-1987 06:52:27.09 cpi canada E V RM f0426 reute f f BC-CANADA-MAY-CONS 06-19 0012 ****** 19-JUN-1987 06:53:26.52 ukitaly RM f0427 reute b f BC-ITALY'S-CIR-SEEKS-200 06-19 0079 LONDON, June 19 - Compagnie Industriali Riunite (CIR) has asked Citicorp Investment Bank Ltd to arrange a 200 mln dlr syndicated loan facility, which will have a final maturity of seven years, Citicorp said. Continental Illinois Ltd and Dai-Ichi Kangyo Bank Ltd will be coordinators for the facility, which will be in the name of CIR International S.A., Luxembourg and guaranteeed by Compagnie Industriali Riunite SpA. Banks will be able to terminate their participation at the end of year five or year six, subject to four years prior notice. There is an availability period of 12 months during which a commitment fee of 0.0625 pct per annum is payable on undrawn amounts. Interest on the drawn loan will be 0.15 pct over the London Interbank Offered Rate. The borrower is the holding company for Carlo di Benedetti's various companies, which include Ing C. Olivetti EC SpA. REUTER 19-JUN-1987 06:54:49.28 cpi canada V RM E f0429 reute b f BC-CANADA-CONSUMER-PRICE 06-19 0051 OTTAWA, June 19 - Canada's consumer price index rose 0.6 pct in May to 137.8, base 1981, following a 0.4 pct rise in April and a 0.5 pct rise in May 1986, Statistics Canada said. The May year-on-year rise was 4.6 pct, compared with a 4.5 pct rise in April. Reuter 19-JUN-1987 07:04:32.27 wpi west-germany RM f0441 reute b f BC-GERMAN-PRODUCER-PRICE 06-19 0090 WIESBADEN, June 19 - West German producer prices rose 0.1 pct in May compared with April to stand 2.9 pct lower than in May last year, the Federal Statistics Office said. In April, producer prices fell 0.3 pct from March and dropped 3.6 pct from their levels a year earlier. The Statistics Office said producer prices for liquefied gas fell 10 pct in May from April and heavy heating oil prices declined 5.3 pct, while lead prices rose 23 pct and silver prices increased 13 pct. REUTER 19-JUN-1987 07:07:28.57 gas japan F f0446 reute u f BC-JAPAN-FIRMS-TO-LAUNCH 06-19 0110 TOKYO, June 19 - Japanese oil companies are starting campaigns to market 100 octane gasoline to meet growing domestic demand for higher quality motor fuel, oil sources said. Ten companies plan to offer the unleaded gasoline this summer, starting with <Idemitsu Kosan Co Ltd> on June 20. Showa Shell Sekiyu KK <SHOL.T> introduced its Formula Shell 98 octane gasoline to the Japanese market in January this year. Formula Shell has achieved strong sales in Japan despite a higher price than regular octane gasoline, which has prompted other oil firms to offer a rival product, the sources said. "We have received a good response from consumers of Formula Shell in terms of a smoother ride and effective fuel consumption," Showa Shell said. Shell's product sells for 145 yen per litre, 15 yen higher than regular gasoline, and has already achieved a 38 pct share of Japan's high octane gasoline market, it said. High octane gasoline accounts for 25 pct of Shell's total gasoline sales in Japan, it added. Idemitsu said it hopes to raise high octane sales to 20 pct of its total gasoline sales from about seven pct, immediately after the launch of its Idemitsu 100. Nippon Oil Co Ltd <NPOL.T> said it will launch its 100 octane gasoline on July 1, aiming for an increase in high octane sales to 20 pct from six pct of its total gasoline sales. The rush to compete for high octane gasoline market share has been spurred by expectations that the government will lift gasoline production quotas and restrictions on gasoline station construction in the next two to three years. "Major oil companies are trying to boost their gasoline sales network ahead of the proposed lifting of gasoline production quotas," an official at a major oil company said. An advisory panel to the Ministry of International Trade and Industry (MITI) recommended this week that the government press ahead with deregulation of the oil industry, including the lifting of gasoline production quotas, to help oil companies increase their international competitiveness. Japan's three biggest gasoline marketers, Nippon Oil, Idemitsu and Showa Shell, suffered supply shortages under the production quota guideline in fiscal 1986, ended last March. Domestic gasoline demand during the year was up 2.5 pct from the previous year, according to a MITI report. REUTER 19-JUN-1987 07:10:04.20 usa RM f0455 reute r f BC-S/P-AFFIRMS-NATIONAL 06-19 0110 NEW YORK, June 19 - Standard and Poor's Corp said it yesterday affirmed the AAA senior debt and A-1-plus commercial paper of National Westminster Bank Plc <NWBL.L>. The AA long-term and A-1-plus short-term certificates of deposit of National Westminster Bank USA were also affirmed. S and P cited the bank's decision to increase group provisions for sovereign debt exposure by 466 mln stg. The action raised total provisions against 35 countries with payment difficulties to 29.8 pct from 13 pct, S and P said. S and P said this puts the bank's debt coverage in line with that of its international peers. REUTER 19-JUN-1987 07:16:24.96 usa A f0464 reute r f BC-S/P-AFFIRMS-NATIONAL 06-19 0107 NEW YORK, June 19 - Standard and Poor's Corp said it affirmed the AAA senior debt and A-1-plus commercial paper of National Westminster Bank Plc <NWBL.L>. The AA long-term and A-1-plus short-term certificates of deposit of National Westminster Bank USA were also affirmed. S and P cited the bank's decision to increase group provisions for sovereign debt exposure by 466 mln stg. The action raised total provisions against 35 countries with payment difficulties to 29.8 pct from 13 pct, S and P said. S and P said this puts the bank's debt coverage in line with that of its international peers. REUTER 19-JUN-1987 07:18:11.44 hong-kong RM f0466 reute u f BC-NEWS-CORP-UNIT-LOAN-T 06-19 0101 HONG KONG, June 19 - The proposed 500 mln Hong Kong dlr transferable loan facility for <South China Morning Post Co Ltd>, a unit of News Corp Ltd <NCPA.S>, will be raised to 888 mln dlrs, lead manager Manufacturers Hanover Asia Ltd said. The loan was more than three times oversubscribed in syndication with 1.2 billion dlrs raised. Manufacturers Hanover Asia and the other three lead managers, Amsterdam-Rotterdam Bank, Bank of Tokyo and Westpac Banking Corp, will each contribute 36 mln dlrs. There are 33 managers and seven co-managers. Allotments for managers who were invited to contribute 40 mln dlrs will be cut to 20 mln dlrs, while those for co-managers invited to contribute 25 mln dlrs will be reduced to 12 mln dlrs. The five-year loan facility, with a 3-1/2 year grace period, will be borrowed under the name of South China Morning Post Finance Ltd and guaranteed by News Corp. Interest is set at 1/2 percentage point over Hong Kong interbank offered rate for the first two years, rising to 5/8 point thereafter. REUTER 19-JUN-1987 07:19:54.46 acq uk F f0469 reute u f BC-BPCC-PLANNING-SALE-OF 06-19 0104 LONDON, June 19 - The British Printing and Communication Corp Plc<BPL.L> is considering selling its specialist packaging and labelling operations, a spokeswoman said. She gave no dates or prices for the transaction but said the units would be sold by negotiation. She declined to give any turnover or profit figures for the packaging and labelling operations, beyond saying that they were very profitable. They formed a self-contained part of the overall group, she said. Analysts said the packaging and labelling division could be sold for up to 150 mln stg. Earlier this week group chairman Robert Maxwell also said it expected to float its Mirror group newspaper subsidiary, bought from Reed International Plc <REED.L> for 100 mln stg in 1984. The spokeswoman said that BPCC intended to keep a majority share in the newspaper group if it was floated. BPCC is currently locked in legal battles resulting from its attempt to take over U.S. Publisher Harcourt Brace Jovanovich Inc <HBJ>. Earlier this week, BPCC launched a two-for-three rights issue to raise 640 mln stg and said the money raised would enable it to renew its assault on Harcourt. It has also expressed interest in Dutch publisher Kluwer NV <KLUW.AS>. REUTER 19-JUN-1987 07:47:51.55 veg-oilpalm-oil ukindia G f0511 reute u f BC-INDIA-BUYS-PALM-OLEIN 06-19 0058 LONDON, June 19 - The Indian State Trading Corp (STC) are reported to have taken three parcels, around 5,000 tonnes each, of palm olein at yesterday's weekly vegetable oil tender, traders said. All are for August shipment at 364 dlrs a tonne cif. India passed on all other materials, they added. REUTER 19-JUN-1987 08:00:04.79 philippines F f0534 reute u f BC-PHILIPPINES-APPROVES 06-19 0095 MANILA, June 19 - Philippines' Board of Investments (BOI) has approved new guidelines on making cars but is still awaiting rules on the tax component of the programme, trade and industry secretary Jose Concepcion said. He said the authorities were still deciding how much tax will be levied on locally-assembled cars. The new car development programme replaces an earlier scheme and is designed to limit the number of car manufacturers in the local market. The scheme is to be unveiled before the end of the month. The two accredited local car manufacturers are <Pilipinas Nissan Inc>, which gets car kits from Nissan Motor Company Ltd <NSAN.T> and <Philippine Automotive Manufacturing Corp> which gets supplies from Mitsubishi Corp <MITT.T>. Three companies which pulled out due to what they saw as poor market conditions were Ford Philippines, a subsidiary of Ford Motor Co <F>, General Motors Pilipinas, a subsidiary of General Motors Corp <GM> and <Delta Motors Corp>. Toyota Motor Corp <TOYO.T>, which was the foreign partner of Delta Motors, has applied for a place in the new programme and is negotiating the purchase of Delta's assembly plant. Concepcion declined to say how many car assemblers would be allowed to operate, but said they will be required to finance 75 pct of the foreign exchange needed to import completely-knocked-down kits. The balance will be provided by the central bank, he said. The trade minister, who is also chairman of the BOI, said the programme is intended to develop a car parts industry by requiring car firms to use locally-made spare parts. He said the plan should keep car prices at "reasonable levels." Tax currently accounts for 40 pct of the total cost of a car. REUTER 19-JUN-1987 08:00:14.91 hong-kongindia RM f0535 reute u f BC-INDIA'S-NALCO-LOAN-IN 06-19 0109 HONG KONG, June 19 - The proposed 250 mln U.S. Dlr syndicated loan for <National Aluminium Co Ltd> Nalco of India has been increased to 300 mln dlrs due to over-subscription, lead manager Chemical Asia Ltd said. The 10 year loan, with a six year grace period, is in two tranches. Tranche A of 279 mln dlrs carries interest at 1/4 percentage point over London interbank offered rate (Libor) for the first six years, rising to 3/8 point thereafter. A total of 124 mln dlrs was raised in syndication for tranche A, originally set at 229 mln dlrs. The remainder will be provided by the lead managers. There are 15 lead managers, six managers, eight co-managers and 14 participants in the conventional tranche. The 21 mln dlr Belgian tax-spared tranche carries interest at one basis point over Libor throughout its life. Funds will be provided by Bank of Yokohama, Credit Lyonnais, Mitsui Trust and Banking Co Ltd and Saitama Bank. REUTER 19-JUN-1987 08:04:44.84 belgiumwest-germany ec G T f0561 reute u f BC-EC-FARM-MINISTERS-MEE 06-19 0099 BRUSSELS, June 19 - A meeting of European Community (EC) farm ministers is unlikely to be held next week following the ministers' failure to agree a 1987/88 farm price package yesterday, an EC Commission spokesman said. However, he said he could not rule out such a meeting altogether, noting the decision is one for Belgium, which currently holds the presidency of the EC council of ministers. The farm ministers could also meet in parallel with the meeting of EC heads of government in Brussels on June 29 and 30, diplomats noted. The ministers ended their three-day meeting in Luxembourg still split on the question of an oils and fats tax and with West Germany saying it would use its veto on two other key aspects of EC Commission proposals, the actual common price changes and a revision of the "green money" system. The Commission spokesman said an announcement is likely to appear in the EC's Official Journal within a few days giving notice of the Commission's intention to take emergency measures from July 1 should ministers fail to reach an accord. However, Commission sources said this notice would not detail the measures to be taken, which, they said, might be considered by the Commission at its regular weekly meeting next Wednesday. The Commission published a declaration by EC Farm Commissioner Frans Andriessen made in Luxembourg early yesterday at the end of the agriculture ministers' meeting. In it, Andriessen said there was now a serious threat to the functioning of the Common Agricultural Policy. Andriessen added ,"The Commission...Will take the measures which are necessary, not only for the temporary management of the markets, but also for a healthy finance policy." "This means that the protective measures we are going to apply will necessarily have, in the context of our own powers, a dynamic character," he said. REUTER 19-JUN-1987 08:04:55.32 ship belgium C G L M T f0562 reute u f BC-BELGIAN-ONE-DAY-STRIK 06-19 0106 BRUSSELS, June 19 - A 24-hour strike by Belgian public employees protesting against a government pay offer disrupted transport and hit ferry services and shipping, port and union officials said. Some cross-Channel ferry services from Ostend were cancelled, the local news agency Belga said. An Antwerp port authority spokesman said electricians came out in support, reducing ship movements to a trickle. Unions said Ghent and other major Belgian ports were also hit. Few trains were running and some early morning flights by Sabena, Belgian's national airline, were cancelled. Reuter 19-JUN-1987 08:17:50.11 usa F f0602 reute r f BC-DE-LAURENTIIS-FILM-<D 06-19 0075 LOS ANGELES, June 19 - De Laurentiis Film Partners LP said it will pay an initial quarterly dividend of 37.3 cts per unit to holders of record on June 30, payable within 90 days of that date. The partnership said De Laurentiis Entertainment Group Inc <DEG>, which owns one third of its shares, will defer its share of the payout to maximize funds available to the partnership for future film investments. Reuter 19-JUN-1987 08:17:55.55 usa F f0604 reute r f BC-CAPITOL-BANCORP-<CAPB 06-19 0022 BOSTON, June 19 - Qtly div 24 cts vs 23 cts prior Pay July 28 Record June 30 Reuter 19-JUN-1987 08:18:18.90 usa F f0605 reute r f BC-AUGAT<AUG>-SEEKS-TO-M 06-19 0056 MANSFIELD, MASS., June 19 - Augat Inc said it retained an investment banker, Wertheim Schroeder and Co Inc, to explore possible means for the company to maximize shareholder value. The company said it was not pressured into taking this action by any specific situation or opportunity. Reuter 19-JUN-1987 08:19:25.45 usa F f0606 reute u f BC-DE-LAURENTIIS-COMPANI 06-19 0050 LOS ANGELES, June 19 - De Laurentiis Film Partners LP <DFP> and De Laurentiis Entertainment Group Inc <DEG> said they will take charges of five mln and 6,500,000 dlrs repsectively on their film "Million Dollar Mystery" due to disappointing box office results. Reuter 19-JUN-1987 08:19:43.25 ship chinaussr C G T M f0608 reute d f BC-CHINA-RESUMES-USSR-SH 06-19 0136 PEKING, June 19 - China has resumed repairs of Soviet ships after a 23 year break caused by the ideological split between the two countries. The New China News Agency said an agreement to resume the business was signed by the two sides on Wednesday in Shanghai, where three Soviet commercial vessels were being repaired. The China Daily said the first two Soviet ships to be repaired in China since 1964 left the ports of Dalian and Xingang last month. Bi Yueran, managing director of China State Shipbuilding Corp's ship repair department, told the newspaper the Soviet Union lacked adequate repair facilities for the more than 600 ships deployed in the far east. Bi said China's yards offered competitive prices, guaranteed quality and prompt delivery. Reuter 19-JUN-1987 08:20:17.26 west-germany F f0611 reute h f BC-VW,TOYOTA-LIGHT-TRUCK 06-19 0092 WOLFSBURG, West Germany, June 19 - Volkswagen AG <VOWG.F> said negotiations with Toyota Motor Corp <TOYO.T> over a joint production accord have reached "an advanced stage." An announcement on an agreement to assemble Toyota Hi Lux light trucks at VW's Hanover plant is expected next week, industry sources close to VW said. The Financial Times newspaper quoted VW managing board chairman Carl Hahn saying he was certain the two companies would agree to produce one tonne pick-up trucks from 1988. Reuter 19-JUN-1987 08:22:16.02 usa F f0615 reute r f BC-KING-WORLD-<KWP>-STAR 06-19 0106 NEW YORK, June 19 - King World Productions Inc said it has started a tender offer for up to 4,100,000 of its own common shares at 28 dlrs each. In a newspaper advertisement, the company said the offer, proration period and withdrawal rights expire July 17 unless extended. The offer is not conditioned on receipt of any minimum number of shares. King World said members of the King family and an officer and director who together own about 46 pct of its stock have agreed not to tender any shares in the offer but to sell up to 3,465,085 shares to King in January 1988 at 28 dlrs each. King World has about 30.8 mln shares outstanding. The company said a tendering shareholder may elect to receive payment for his shares in January rather than immediately for tax purposes. King said it will pay only the offer price and no interest. Reuter 19-JUN-1987 08:24:38.67 usa F f0621 reute r f BC-CABLEVISION-<CVC>-DEA 06-19 0097 WOODBURY, N.Y., June 19 - Cablevision Systems Corp said its agreement to buy from CBS Inc <CBS> and the Washington Post Co their partnership interests in four regional sports services will have a value of about 56.2 mln dlrs. It said the sports services, managed by Rainbow Program Enterprises, is expected to close by the end of the year. The services include SportsChanel Associates (New York), SportsChannel PRISM Associates (Philadelphia), SportsChannel Chicago Associates and SportsChannel New England Limited Partnership. Reuter 19-JUN-1987 08:25:46.43 groundnut switzerlandukusanetherlandschina G f0623 reute u f BC-TRACOMIN-SEES-LOWER-U 06-19 0109 LAUSANNE, Switzerland, June 19 - U.S. Exports of edible groundnuts could fall to 185,000 tonnes in the year to September 1987 from 248,000 in the same 1986 period, trading company Tracomin SA said. It revised its December 1986 forecast that exports would total 205,000 tonnes, citing low demand, the loss of U.S. Market share in the two main importing countries, Britain and the Netherlands, and the sale of nuts intended for export at a premium in the U.S. Domestic market. Tracomin estimated export availability from the 1986 crop at 215,000 tonnes compared with 264,000 the previous year. Tracomin said it expects a good 1987 U.S. Groundnut crop and forecast a resurgence in U.S. Exports next year. "Barring any market manipulations, a good U.S. Harvest in 1987 could lead to attractive prices, active trading and the reappearance of the U.S.A as the world's leading producer of peanuts," it said. Overall exports from China, the leading exporter last year, will remain at exceptionally high levels this year despite quality complaints and difficulties in implementing some earlier high-priced contracts. It is too early to say if China can retain its current market share in 1988, Tracomin said. REUTER 19-JUN-1987 08:27:50.23 usa james-miller V RM f0631 reute u f BC-U.S.-BUDGET-CHIEF-THR 06-19 0090 WASHINGTON, June 19 - U.S. Budget Director James Miller said President Reagan would veto the Democrat-controlled Congress' new budget plan out of hand -- but offered to compromise on raising revenues. "If that budget comes down it will vetoed out of hand, I can tell you that," Miller said on a morning television show. He said Reagan would not accept the 19 bln dlr tax increase in Congress' proposal but said "keep in mind the president has proposed certain revenues in his budget. "They're not taxes," Miller said. "They are user charges and asset sales. I think there is some room there we can sit down and talk with the Democrats about." Miller said he believed a compromise could be worked out but he said the administration would need assurance that whatever compromise it accepted would indeed by passed by Congress. Miller also said in the interview that he did not believe the new U.S. protection of 11 Kuwaiti tanker ships in the Persian Gulf would require a supplemental request to Congress later for more defense money. Reuter 19-JUN-1987 08:33:06.55 usa F f0656 reute d f BC-DIVI-HOTELS-<DVH>-REC 06-19 0043 NEW YORK, June 19 - Divi Hotels N.V. said its board recommended that shareholders approve payment of an initial dividend of 12-1/2 cts a share semi-annually. It said the dividend would be paid in August and February. Reuter 19-JUN-1987 08:33:14.92 usa F f0657 reute d f BC-MAJOR-VIDEO-<MAJV.O> 06-19 0077 LAS VEGAS, June 19 - Major Video Corp said it filed a registration statement covering a proposed public offering of 1.4 mln shares of common stock to be sold by the company. It said Rauscher Pierce Refsnes Inc will be managing underwriter of the offering, expected in July, with proceeds to be used to finance development and possible acquisition of additional Major Video Superstores and for working capital. Reuter 19-JUN-1987 08:33:57.06 france pse F f0663 reute d f BC-MOULINEX-SHARES-FALL 06-19 0103 PARIS, June 19 - French domestic appliance maker Moulinex <MOUP.PA> shares continued to fall on the Paris Bourse reaching its year's low amid controversy over an auditor's report on 1987 profit forecasts, dealers said. A Moulinex spokesman said a "mutilated" copy of the report by Paris auditors Syndex, which gave a poor impression of the company's prospects, had caused the stock to fall sharply. Meanwhile, Moulinex said in a communique that it stood by its April forecast of a 1987 parent company net loss of 41.7 mln francs vs a 226 mln loss in 1986. The spokesman said 50 pages of the 200-page report, commissioned by Moulinex's staff/management committee, had been circulated to several Parisian stockbrokers. The Syndex report said the company's 1987 target would be difficult to achieve, thereby causing Moulinex stock to drop almost 13 francs in two days to 75.10 francs per share. A Syndex spokesman said yesterday that the auditors were "shocked" by the leak of a confidential document and attributed it to "malicious intentions." Several Paris brokers said it was likely that corporate "raiders" interested in a takeover bid had put out the Syndex report to bring down the share price. Moulinex shares have fluctuated considerably since the beginning of the year on takeover rumours, reaching a high of 122 francs. Group president Jean Mantelet, who is 87, said in February that he intended to transfer his 42 pct stake in Moulinex to the company's employees. However, a company statement issued at the same time said a management buy-out was only one of several options. The rest of the group's equity has been held by private investors since March when <Scovill Inc> of the U.S. Sold its 20 pct holding in the company. REUTER 19-JUN-1987 08:34:24.85 switzerland F f0667 reute d f BC-SWISSAIR-REVENUES-FAL 06-19 0066 ZURICH, June 19 - Swissair <SWSZ.Z> said its revenues were down four pct in April compared with a year earlier, but costs before depreciation were cut by six pct. Traffic rose seven pct in April compared with a year earlier and the overall load factor increased one percentage point to 61 pct. Passenger load factor rose to 60 pct from 59 pct. REUTER 19-JUN-1987 08:35:01.60 uk lawson RM f0669 reute u f BC-LAWSON-SAYS-LOW-U.K. 06-19 0106 LONDON, June 19 - Chancellor of the Exchequer Nigel Lawson said current low unit wage costs are helping British exports but wage rises are "faster than is comfortable." He hoped yesterday's Organisation for Economic Cooperation and Development (OECD) forecasts of increases in wage rises were wrong, saying OECD predictions "are somewhat unreliable." "Productivity is rising very fast, and therefore even though wages are going up faster than is comfortable, the actual unit cost of labour...Is not going up fast at all," Lawson said in answer to questions on BBC radio. "That is one of the reasons why we're doing so well in export markets, for example, but we could do even better and get unemployment down even faster if there was a more moderate rate of growth in wage increases," Lawson added. His remarks followed yesterday's news that underlying average earnings were rising 7.75 pct annually in April, up from March's 7.5 pct increase, which sent the U.K. Government bond market lower and helped trigger inflation worries. Lawson said he would not update his own economic forecasts for the U.K. Until the traditional Autumn Statement on the economy. Lawson would not be drawn on whether he will cut the basic rate of tax from the current 27 pct to 25 pct in the next budget due in March 1988. "We will certainly achieve it sooner or later," he said. The latest official data, released yesterday, showed unit wage costs in manufacturing industry were rising 0.9 pct annually in the three month period ended April, down from a 1.2 pct rise in the first quarter and sharply below last year's first quarter growth rate of 7.8 pct. However, analysts said this figure is likely to deteriorate somewhat as productivity growth slows later this year. REUTER 19-JUN-1987 08:35:17.16 usa F f0671 reute u f BC-QUANTUM-CORP-<QNTM.O> 06-19 0044 MILPITAS, Calif., June 19 - quantum corp said it will take a charge of about 3,500,000 dlrs due to a decision to discontinue its Q160 160 megabyte disk drive, causing a loss for the first quarter ending June 28. The company said it expects higher revenues for the period, however. Quantum earned 22.2 mln dlrs on revenues of 121.2 mln dlrs in last year's first quarter. Quantum said it will eliminate 29 staff positions as a result of the cancellation of the Q160 and the redirection of product development efforts. The company said it is modifying plans and projects to concentrate on its core disk drive business and on the development of higher performance low-cost smaller drives, particularly 3-1/2 inch drives. Reuter 19-JUN-1987 08:38:29.83 usa F f0676 reute d f BC-FINE-HOMES-INT'L-INIT 06-19 0090 NEW YORK, June 19 - Merrill Lynch and Co Inc said its initial public offering of six mln limited partnership preference units of Fine Homes International L.P. was priced at 18 dlrs a unit. In addition, there was also an offering by Fine Homes of 1.5 mln preference units to its employees. Merrill Lynch said it will continue to own about 21 mln subordinated units. Fine Homes is involved in residential real estate and in the relocation management business and related mortgage banking. Reuter 19-JUN-1987 08:43:03.06 crudenat-gas saudi-arabia opec V f0686 reute u f BC-SAUDI-OIL-RESERVES-RI 06-19 0115 JEDDAH, June 19 - Proven oil and gas deposits in Saudi Arabia increased in 1986 despite higher oil output, according to the kingdom's main producing company, Aramco. Recoverable oil reserves in Aramco fields rose to 167 billion barrels by the end the year from 166.5 billion in 1985, while gas reserves jumped by 7.7 pct to 135.8 trillion cu ft from 126.1 trillion, the company's annual report said. Aramco, responsible for all Saudi production except about 200,000 barrels per day (bpd) in the Neutral Zone between Saudi Arabia and Kuwait, increased production to 4.69 mln barrels per day in 1986 from 3.04 mln barrels a year earlier. Most of 1986 was a virtual free-for-all in production, as OPEC members abandoned restraint in an effort to recapture their share of the market. In the process, prices collapsed from about 28 dlrs a barrel to below nine dlrs, until the organisation decided to cut production again from last September onwards. Saudi output in 1985 had been the lowest since the 1960s. Production of natural gas liquids in 1986 declined slightly to 304,178 bpd from 316,310, said the report, carried on the official Saudi Press Agency. The increase in reserves came despite a sharp cut in the number of wells Aramco drilled to 33 in 1986 from 103 in 1985. Aramco's only refinery, at Ras Tannurah, processed 142.44 mln barrels (390,246 bpd) of crude last year. The plant was upgraded to a capacity of 530,000 bpd during the year, enabling it to supply 50 pct of local demand for oil products, the report said. The country's other five, smaller refineries -- owned by another state-owned oil organisation, Petromin -- produced around 750,000 bpd last year. Sulphur production rose to 1.23 mln tonnes in 1986 from 998,707 tonnes in 1985. During the year the company began operating a sulphur granule plant with capacity of 4,000 tonnes per day, the report said. Aramco said it awarded 1,303 contracts last year worth 1.4 billion riyals -- about 370 mln dlrs. REUTER 19-JUN-1987 08:45:14.09 usa F f0695 reute r f BC-FORD-<F>-UNIT-OFFERS 06-19 0103 NEW YORK, June 19 - Bear Stearns Cos Inc <BSC> said an offering of three mln currency exchange warrants of Ford Motor Co's Ford Motor Credit unit is underway at 4.375 dlrs each. Each warrant allows the holder to receive from Ford Credit the cash value in U.S. dollars of the right to purchase 50 dlrs at a price of 7,610 yen. Bear Stearns said the spot exchange rates of the yen and dollar will determine whether the warrants have a cash value on a given day. It said the warrants will have a cash settlement value only if the dollar is worth over 152.20 yen. The company said if a warrant has not been exercised, and at its expiration the value of the dollar is not more than 152.20 yen, the warrant will expire with no cash settlement value. It said the warrants will be exercisable immediately and expire in five years, and any warrant not exercised before then will be automatically exercised on July 1, 1992. Bear Stearns said this is the second time a currency warrant issue has been sold in the U.S., the first being a two mln warrant issue for General Electric Co's <GE> General Electric Credit Corp unit on June 10. Reuter 19-JUN-1987 08:48:44.49 usa F f0704 reute w f BC-TRI-STAR-PICTURES-<TR 06-19 0089 NEW YORK, June 19 - Tri-Star Pictures Inc said it won permanent relief from various provisions of the 1952 Consent Judgment and 1980 Order that apply to the Loews' Theatre Circuit, which Tri-Star acquired last December. It said the U.S. District Court for the Southern District of New York agreed to permit exhibition of Tri-Star motion pictures in loews theaters and to allow Tri-Star to conduct its business other than with Loews free from restructions of the court's earlier orders. Reuter 19-JUN-1987 08:49:08.19 acq usa F f0706 reute r f BC-FIDELCOR-<FICR.O>-BUY 06-19 0065 PHILADELPHIA, June 19 - Fidelcor Inc said it has acquired a substantial portion of the assets of Bank of New England Corp's Lazere Financial Corp subsidiary for undisclosed terms. The company said the transaction includes most of Lazere's loan portfolio and other assets, including Lazere's Miami office. Reuter 19-JUN-1987 08:49:45.61 south-korea C G L M T f0708 reute u f BC-SEOUL-THREATENS-EMERG 06-19 0067 SEOUL, June 19 - The South Korean government will shortly issue a statement warning it will take unspecified emergency measures if widespread protest demonstrations continue, state radio said. Yesterday tens of thousands of demonstrators took to the streets of Seoul and other cities, battling riot police and demanding the resignation of President Chun Doo Hwan. Reuter 19-JUN-1987 08:51:16.61 usa james-miller V RM f0714 reute u f BC-BUDGET 06-19 0113 WASHINGTON, June 19 - Budget Director James Miller said President Reagan would veto the Democrat-controlled Congress' new budget -- but offered to compromise on raising revenues. "If that budget comes down it will be vetoed out of hand, I can tell you that," Miller said on NBC's "Today" program. He said Reagan would not accept the 19 billion dlr tax increase in Congress' proposal but said "keep in mind the president has proposed certain revenues in his budget. "They're not taxes," Miller said. "They are user charges and asset sales. I think there is some room there we can sit down and talk with the Democrats about." Reuter 19-JUN-1987 08:51:52.70 usa F f0716 reute d f BC-COURT-ORDERS-INT'L-ME 06-19 0106 TALLAHASSEE, Fla., June 19 - A Circuit Court judge ordered the company that insured the solvency of International Medical Centres Inc to show cause why it should not honour its contract with International, according to Florida's Department of Insurance, which had filed a petition on the matter. As previously reported, International, the largest health maintenance organization in Florida, was declared insolvent on May 14. Federal regulators had also told the company its Medicare contract would be terminated on July 31 because of the company's financial and management problems. Michelle McLawhorn, Florida Insurance Department spokeswoman, said International's insurer, State Mutual Life Assurance Co of America, had made clear it would fight activation of the policy because International did not provide it with accurate financial records. State Mutual could not be reached for comment. McLawhorn said it was not yet known how many creditors International had or how big its debt was. The court gave State Mutual 20 days to show why it should not be obliged to pay claims against the solvency policy. Reuter 19-JUN-1987 08:52:26.73 usa F f0718 reute r f BC-FINANCIAL-BENEFIT-<FB 06-19 0086 BOCA RATON, Fla., June 19 - Financial Benefit Group Inc said it has agreed to sell one mln shares of Class A common stock to investment banker Fox-Pitt, Kelton NV for placement with institutional and private investors in Britain, Europe and elsewhere. It said the offering is expected to be fully subscribed and proceeds will be used mainly to increase the capital and surplus of its wholly-owned Financial Benefit Life Insurance Co and for general corporate purposes. Reuter 19-JUN-1987 08:57:08.54 acq F f0724 reute f f BC-CHRYSLER-AGREES 06-19 0011 ****** 19-JUN-1987 09:00:25.64 netherlands RM f0729 reute u f BC-DAF-PLANS-100-MLN-GUI 06-19 0107 EINDHOVEN, Netherlands, June 19 - DAF Finance Company NV said it plans a 100 mln guilder commercial paper program beginning June 22. Amro bank is arranging the program with denominations of one mln guilders and maturities ranging from two weeks to two years. Clearing is through the Dutch central bank. DAF Finance is one of the four subsidiaries of DAF BV, a newly established holding company which is a joint venture of DAF Beheer NV and the U.K. Rover Group Plc. The program will be used to finance lease activities, long term rent contracts and dealership financing. REUTER 19-JUN-1987 09:02:45.14 usa F f0731 reute u f BC-PHILIPPINE-LONG-DISTA 06-19 0038 NEW YORK, June 19 - Philippine Long Distance Telephone Co said it has called a special shareholder meeting to approve a proposed two-for-one stock split and a 20 pct stock dividend. The company said the meeting will be held July 15 and shareholders of record on April 27 will be eligible to vote. The company said it will also ask shareholders to approve an increase in authorized common shares to 134 mln and of serial preferred stock to 383 mln and to authorize the sale of two billion pesos of debentures. Reuter 19-JUN-1987 09:03:33.83 interest RM f0736 reute f f BC-Top-discount-rate-at 06-19 0010 ****** 19-JUN-1987 09:03:42.77 ship spain C G L M T f0737 reute u f BC-SPANISH-CARGO-FIRMS-H 06-19 0061 BARCELONA, June 19 - Cargo handling companies said they were hiring twice the usual number of dockers to offset an intermittent strike in Spanish ports. Spanish dockers began a nine-day strike on Wednesday in which they only work alternate hours in protest at government plans to partially privatize port services. Reuter 19-JUN-1987 09:05:40.35 usa F A f0742 reute r f BC-PNC-FINANCIAL-<PNCF.O 06-19 0113 PHILADELPHIA, June 19 - PNC Financial corp's Provident National Bank subsidiary said it is increasing the weighting of bonds in its investment portfolio due to the recent softening in the fixed-income markets. The bank said it is shifting the debt to equity mix of its balanced portfolios to 45 pct bonds/55 pct stocks from 40/60 and reducing the equity segment's cash reserve to 25 pct from 30 pct. It said "Based on the continued high valuation level of the stock market, coupled with the recent temporary weakness in bond prices, the relative attractiveness of the bond market is now at its highest level in over 18 months." Reuter 19-JUN-1987 09:06:53.88 usa A f0743 reute d f AM-THRIFT 06-19 0121 WASHINGTON, June 19 - The Federal Home Loan Bank Board (FHLBB) placed Investors Federal Bank of El Reno, Okla., in receivership and transferred its 97.8 mln dlrs n assets to the Investors Savings and Loan Association. An FHLBB statement said the failed thrift was insolvent and "had substantially dissipated its assets," largely through participating in large commercial real estate developments. It said the thrift violated federal laws and regulations on loan documentation, loans to directors, and apparent conflicts of interest. The sucessor organization is a federal savings and loan association which will be managed under contract by Sunwood Management Corp. of Parker, Colo. REUTER 19-JUN-1987 09:08:56.25 usa F f0747 reute s f BC-VMS-MORTGAGE-INVESTOR 06-19 0024 CHICAGO, June 19 - Mthly div nine cts vs nine cts prior Pay Aug 14 Record July One Reuter 19-JUN-1987 09:10:47.59 canada E F f0750 reute r f AM-POSTAL 06-19 0124 MONTREAL, June 19 - Canada Post presented its striking letter carriers with a new contract offer today but both sides said there was little indication the offer would end an increasingly violent three-day-old walkout. The strike has been especially bitter in Quebec, where the federally regulated postal service has brought in replacement workers in contravention of provincial laws that prohibit hiring strikebreakers. Canada Post said letter carriers in Chicoutimi and Jonquiere, Quebec, damaged mail sorting rooms, ripped out telephone lines and letter racks, overturned furniture and threw mail on the floor before walking out to join carriers in other cities on the picket line. The rotating strike spread today to the Atlantic provinces and Vancouver. Carriers remained off the job in Edmonton and Vancouver while postal employees went back to work in Montreal, Calgary, and Cornwall, Ontario. About 20 people were arrested in Eastern Canada as strikers scuffled with police called in to escort replacement workers across picket lines. Letter Carriers Union of Canada President Robert McGarry said the new offer to the union's 20,000 members contained only minor changes and did not soften the agency's demand for concessions. Canada Post officials said the agency is limited by federal guidlines which order the agency to eliminate its 160 mln dlrs deficit by next year. Reuter 19-JUN-1987 09:13:26.18 acq usa F f0760 reute b f BC-/CHRYSLER-<C>-TO-TEND 06-19 0063 DETROIT, June 19 - Chrysler Corp said Electrospace Systems Inc agreed to be acquired under a merger agreement in which Chrysler will tender 27 dlrs a share for 100 pct of the Richardson, Texas-based defense electronics contractor. It said total cost to Chrysler to buy all of the outstanding stock would be about 367 mln dlrs. Electrospace Systems designs, develops and installs communications and electronic systems and equipment for the specialized needs of military and commercial customers worldwide. Chrysler said Electrospace will help its Gulfstream operations grow in military and commercial aircraft sales. But it said there are no plans to merge Gulfstream and Electrospace. Rather, they will operate as "sister companies," it said. Chrysler said its tender offer is expected to begin by June 25 and will be managed by First Boston Corp. For the fiscal year ended April 3, 1987, Electrospace Systems had earnings of 10 mln dlrs on sales of 191 mln dlrs. The company employs 2,500 people. About 92 pct of its sales were to the military. Reuter 19-JUN-1987 09:14:26.41 crude nigeria opec V f0766 reute u f BC-OPEC-PRESIDENT-LUKMAN 06-19 0093 LAGOS, June 19 - OPEC conference president Rilwanu Lukman said he expects next week's ministerial meeting in Vienna to be brief and calm and that OPEC's current price and production agreement may only need a slight review. "I expect the meeting in Vienna to be short and calm," Lukman, who is also Nigerian oil minister, told reporters here ahead of his departure on Sunday for the conference, which starts June 25. "We already have an agreement which may need only a slight review," Lukman said. The agreement reached at a long session of OPEC ministers in December last year pegged the group's crude oil output at 15.8 mln bpd for first half 1987 at fixed prices of around 18 dlrs a barrel. Since then prices have risen from 15 dlrs in December to just above the official OPEC levels, with oil industry analysts firmly convinced the organisation will maintain the agreement to keep the market stable. "I myself believe that OPEC will tend to take a position to strengthen the gains we have made so far," Lukman said. He declined to say if the current ceiling should be maintained or raised to 16.6 mln bpd for the third quarter and 18.3 mln for the fourth as provisionally agreed last December. "Whatever decision we arrive at will be guided by our collective will to keep the market strong," he said. He said non-OPEC member Norway, which he visited two weeks ago, had pledged further cooperation with the group and this was significant for its members. Lukman said heavy destocking by consumers early this year when OPEC's fixed price regime came into effect and a restocking now for the winter was responsible for current market strength. Reuter 19-JUN-1987 09:16:52.01 usa F f0771 reute s f BC-VMS-MORTGAGE-INVESTOR 06-19 0023 CHICAGO, June 19 - Qtly div 21 cts vs 21 cts prior Pay Aug 14 Record July One Reuter 19-JUN-1987 09:17:13.04 canadausa E F f0772 reute r f BC-cancentral 06-19 0083 ANCASTER, Ontario, June 19 - Central Fund of Canada Ltd said it filed a registration statement with the U.S. Securities and Exchange Commission for a U.S. offering of 3,250,000 units, each consisting of two class A shares and one warrant. Central Fund, a specialized investment holding company, said net proceeds will be used mainly to buy gold and silver bullion. The issue will be underwritten by Drexel Burnham Lambert Inc and Wood Gundy Inc. Reuter 19-JUN-1987 09:21:04.79 usa F f0779 reute u f BC-FIRST-FEDERAL-<FFSD.O 06-19 0044 DECATUR, Ala., June 19 - First Federal Savings Bank said it will take a 274,000 dlr or 25 ct per share writeoff of its secondary reserve with the Federal Savings and Loan Insurance Corp in the third quartger ending June 30. Reuter 19-JUN-1987 09:26:32.49 usa F f0797 reute s f BC-SUFFIELD-FINANCIAL-CO 06-19 0025 SUFFIELD, Conn., June 19 - Qtly div five cts vs five cts prior Pay July 10 Record June 30 Reuter 19-JUN-1987 09:26:55.23 usa F f0798 reute d f BC-METROPOLITAN-LIFE-TO 06-19 0049 PROVIDENCE, R.I., June 19 - <Metropolitan Life Insurance Co> said it has received a license to operate a health maintenance organization in Rhode Island called MetLife HealthCare Network of Rhode Island. Reuter 19-JUN-1987 09:28:30.61 west-germany kohl RM f0806 reute u f BC-BONN-WILL-HOLD-TAX-RE 06-19 0111 BONN, June 19 - The West German government will stick to its agreed timetable and introduce tax cuts worth 44 billion marks from 1990, Chancellor Helmut Kohl said. Kohl told a news conference, "The tax reform will be realised as agreed by the coalition after the (last general) election" in January. He said the leadership of his own Christian Democratic party repeated its support for the tax reform timetable at a meeting this week. CDU vice-chairman Lothar Spaeth also reiterated his doubts about whether the reform was feasible as planned, but received no support from other party members, he added. Kohl said the government intends to decide by the autumn how to raise around 19 billion marks still needed to finance the tax reform. Subsidies paid to ailing industries are the main target for trimming to pay for the tax reform. But politicians both inside and outside the government have expressed doubts about making politically painful cuts in subsidies. REUTER 19-JUN-1987 09:29:07.58 usa F f0812 reute s f BC-MOTEL-6-L.P.-<SIX>-SE 06-19 0024 SANTA BARBARA, Calif., June 19 - Qtly div 30-1/2 cts vs 30-1/2 cts prior Pay Aug 15 Record June 30 Reuter 19-JUN-1987 09:30:48.79 acq usa F f0818 reute b f BC-DAVIS-MINING-REVISES 06-19 0107 SOUTH MILWAUKEE, Wis., June 19 - Becor Western Inc said <Davis Mining and Manufacturing Inc> has amended its offer for the company. Becor said the cash portion of the offer remains unchanged at 10.45 dlrs a share but the principal amount of debentures would increase to 3.50 dlrs from 3.00 dlrs a Becor share. The amended offer also includes 1.50 dlrs face value of the surviving corporation's 12.5 pct nonvoting cumulative preferred not included in the previous offer, and reduces the amount of the surviving corporation's common to be held by present shareholders to 55 pct from 60 pct. Becor Western the amended Davis Mining offer is suject to confirmation of certain due diligence information. Becor also said discussions continue with one other possible bidder which it still has not been identified. Again, the company said it expects discussions with the other possible investor to conclude shortly. At that time, the board will evaluate all the then existing offers for Becor, it added. Reuter 19-JUN-1987 09:34:09.91 acq usa F f0826 reute u f BC-MTECH-<MTCH>-HAS-33,4 06-19 0052 IRVING, Texas, June 19 - MTech Corp said it has received 33,467 shares of Commercial Resources Corp in response to its 10.25 dlr per share tender offer for all 150,000 shares. The company said it has extended the offer until July 2. It was to have expired yesterday. Reuter 19-JUN-1987 09:34:24.53 usa F f0828 reute u f BC-DEPOSIT-GUARANTY-<DEP 06-19 0078 JACKSON, MISS., June 19 - Deposit Guaranty National Bank said it will add 8.1 mln dlrs to its loan loss reserve during the second quarter to cover potential foreign debt exposure in Latin America. It said the action will reduce second quarter earnings of Deposit Guaranty Corp, the bank's parent, by about 60 cts a share. It said the corporation will have a profitable quarter and also a strong earnings year in 1987. Following the increase, Deposit Guaranty said its loan loss reserve will total about 37 mln dlrs, or 1.9 pct of total outstanding loans. Reuter 19-JUN-1987 09:35:14.24 usa F Y f0834 reute r f BC-TVA-CUSTOMERS-ASK-COU 06-19 0101 NASHVILLE, Tenn., June 19 - An organization of Tennessee Valley Authority industrial customers said it has joined the TVA in asking a court to prevent the U.S. Department of Energy from witholding contracted payments to TVA. The Tennessee Valley Industrial Committee said it is seeking permission to intervene in TVA's federal district court lawsuit requesting DOE be enjoined from witholding payments due under "minimum demand" provisions of the TVA's contract to supply electricity to uranium enrichment facilities at Oak Ridge, Tenn., and Paducah, Ky. Such provisions obligate TVA to make available a certain amount of power and the customer -- in this case the DOE -- agrees to pay the fixed costs associated with that amount of power whether is is used or not. The committee represents 27 large, energy-intensive industries with operations in the TVA service area. These industries, like DOE, are served directly by TVA as opposed to going through a local distributors. The TVA has said DOE's intention, announced last week, to withhold increasing percentages of its electric bill will result in a revenue shortfall of about 250 mln dlrs and force an about six pct rate increase to all other customers. Reuter 19-JUN-1987 09:36:00.43 usa F f0837 reute h f BC-XIOX-<XIOX.O>-REINCOR 06-19 0026 BURLINGAME, Calif., June 19 - Xiox Corp said it has changed its state of incorporation to Delaware from California. Reuter 19-JUN-1987 09:36:20.43 usa F f0838 reute d f BC-QMAX-TECHNOLOGY-<QMAX 06-19 0039 DAYTON, Ohio, June 19 - Qmax Technology Corp said it has reorganized into three operating groups: Pharmaceutical Technology Group, Cosmetic Technology Group and Thermometry Technology Ltd. Reuter 19-JUN-1987 09:37:01.06 earn usa F f0839 reute d f BC-MICRON-TECHNOLOGY-INC 06-19 0062 BOISE, Idaho, June 19 - Shr loss 14 cts vs loss 35 cts Net loss 3,718,908 vs loss 6,714,372 Revs 22.8 mln vs 14.4 mln Avg shrs 25.7 mln vs 19.2 mln Nine mths Shr loss 1.02 dlrs vs loss 1.46 dlrs Net loss 24.4 mln vs loss 28.1 mln Revs 61.7 mln vs 28.9 mln Avg shrs 23.8 mln vs 19.2 mln Reuter 19-JUN-1987 09:37:38.92 usa F f0843 reute d f BC-C.O.M.B.-<CMCO.O>-UNI 06-19 0055 MINNEAPOLIS, June 19 - C.O.M.B. Co said its Cable Value Network (CVN) unit has reached an agreement in principle with Tele-Communications Inc <TCOM.O> to extend its current affiliation agreement to a new seven-year term. C.O.M.B. is a direct mail and video marketing company. Reuter 19-JUN-1987 09:37:58.58 usabelgium F f0845 reute h f BC-OSHAP-TECHNOLOGIES-<O 06-19 0100 NEW YORK, June 19 - OSHAP Technologies Ltd said it formed a joint venture with the Regional Investment Co of the Wallon Region, a Belgian government-controlled investment company. It said the agreement is subject to approval of the Israeli Controller of Foreign Exchange. Under the agreement OSHAP will establish a new corporation which will own all of OSHAP's operations in Europe, including its manufacturing facility in Antwerp, Belgium and distribution rights to OSHAP's other products in Europe. The newly formed company will acquire from the Regional Investment Co of the Walloon Region (SPIW) about 88 pct of Pegard Productics S.A. and SPIW will be entitled to receive for its interest in Pegard about 37 pct of the outstanding shares of the new company. In addition, if the National Investment Co of Belgium, a Belgium government controlled investment company, chooses to participate in the transaction, it will be entitled to receive a 4.7 pct stake in the new company for its 12 pct interest in Pegard. Reuter 19-JUN-1987 09:46:17.96 C L f0865 reute u f BC-slaughter-guesstimate 06-19 0089 CHICAGO, June 19 - Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 265,000 to 270,000 head versus 275,000 week ago and 248,000 a year ago. Saturday's hog slaughter is guesstimated at about 30,000 to 45,000 head. Cattle slaughter is guesstimated at about 127,000 to 130,000 head versus 132,000 week ago and 132,000 a year ago. Saturday's cattle slaughter is guesstimated at about 25,000 to 40,000 head. Reuter 19-JUN-1987 09:46:55.42 usa F RM f0868 reute r f BC-INTEGRATED-RESOURCES 06-19 0068 NEW YORK, June 19 - Investment banker Drexel Burnham Lambert Inc said it has privately placed 180 mln dlrs of multi-class real estate mortgage investment conduits, or REMIC's, of Integrated Resources Inc's Capitol Life Insurance Co subsidiary. The company said the REMIC's were placed in two series of about 300 seasoned multifamily and commercial loans each. Reuter 19-JUN-1987 09:48:54.78 usa reagan RM A f0873 reute r f BC-BYRD-URGES-REAGAN-TO 06-19 0103 WASHINGTON, June 19 - Senate majority leader Robert Byrd urged President Reagan to negotiate with the Democratic-led Congress over budget matters. He told reporters that Reagan and Republicans failed to help write the budget expected to get final congressional approval next week. He said it was time for Reagan to move from his "hobby horse" and get into the negotiations over tax and defence matters, the two issues dividing Reagan and Democrats. Reagan has said he would veto any bill implementing the suggested 19 billion dlrs in 1988 taxes in the budget. Reuter 19-JUN-1987 09:50:27.81 usa F f0875 reute r f BC-<DIGITAL-OPTRONICS-CO 06-19 0078 WASHINGTON, June 19 - Digital Optronics Corp said it has filed for an initial public offering of 850,000 common shares at an expected price of six to 6.50 dlrs a share through underwriters led by Yorke McCarter Owen and Bartels Inc and Norris and Hirshberg Inc. The company said Acme-Cleveland Corp <AMT> and Digital Signal Corp are investors in Digital Optronics. which makes artifical vision sensors and laser radar. Reuter 19-JUN-1987 09:54:09.37 hong-kong A f0880 reute h f BC-NEWS-CORP-UNIT-LOAN-T 06-19 0101 HONG KONG, June 19 - The proposed 500 mln Hong Kong dlr transferable loan facility for <South China Morning Post Co Ltd>, a unit of News Corp Ltd <NCPA.S>, will be raised to 888 mln dlrs, lead manager Manufacturers Hanover Asia Ltd said. The loan was more than three times oversubscribed in syndication with 1.2 billion dlrs raised. Manufacturers Hanover Asia and the other three lead managers, Amsterdam-Rotterdam Bank, Bank of Tokyo and Westpac Banking Corp, will each contribute 36 mln dlrs. There are 33 managers and seven co-managers. Allotments for managers who were invited to contribute 40 mln dlrs will be cut to 20 mln dlrs, while those for co-managers invited to contribute 25 mln dlrs will be reduced to 12 mln dlrs. The five-year loan facility, with a 3-1/2 year grace period, will be borrowed under the name of South China Morning Post Finance Ltd and guaranteed by News Corp. Interest is set at 1/2 percentage point over Hong Kong interbank offered rate for the first two years, rising to 5/8 point thereafter. REUTER 19-JUN-1987 09:55:36.42 usa F f0886 reute s f BC-SOUTHEAST-BANKING-COR 06-19 0022 MIAMI, June 19 - Qtly div 22 cts vs 22 cts prior Pay July 10 Record June 29 Reuter 19-JUN-1987 09:55:45.11 uk RM f0887 reute b f BC-NIPPON-OIL-AND-FATS-I 06-19 0109 LONDON, June 19 - Nippon Oil and Fats Co Ltd is issuing a 70 mln dlr equity warrant eurobond due July 15, 1992 with an indicated coupon of 1-3/8 pct and par pricing, lead manager Yamaichi International (Europe) Ltd said. The issue is guaranteed by Fuji Bank Ltd and final terms will be fixed on June 25. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The issue is available in denominations of 5,000 dlrs and will be listed in Luxembourg. The payment date is July 15 and the warrants are exercisable from July 29, 1987 until June 30, 1992. REUTER 19-JUN-1987 09:57:13.78 acqgold canada E F f0892 reute r f BC-TOTAL-ERICKSON-<TLE.T 06-19 0070 VANCOUVER, B.C., June 19 - Total Erickson Resources Ltd and Consolidated Silver Standard Mines Ltd <CDS.V> said that Total Erickson has purchased all Consolidated's interests in its Dome Mountain property for 60,000 Total Erickson shares and 70,000 dlrs in cash. The companies said the property has several gold-bearing veins and has considerable exploration potential. Reuter 19-JUN-1987 09:57:20.53 usa F f0893 reute u f BC-SOUTHERN-NATIONAL-COR 06-19 0046 LUMBERTON, N.C., June 19 - Southern National Corp said its board approved increasing the dividend rate to 78 cts a year from 76 cts, effective with the next quarterly dividend which will be declared in July, payable August One. Reuter 19-JUN-1987 09:57:36.88 usa F f0894 reute d f BC-BETA-PHASE-<BETA.O>-L 06-19 0053 MENLO PARK, Calif., June 19 - Beta Phase Inc said it has negotiated the first major sale of its SMArtClamp electronic intravenous infusion device. The company said Sharp Memorial Hospital, which participated in clinical tests of the device, has ordered 100 SMArtClamps. Reuter 19-JUN-1987 09:59:07.50 acq usa F f0899 reute u f BC-NAT'L-COMPUTER-<NLCS. 06-19 0080 MINNEAPOLIS, MINN., June 19 - National Computer Systems Inc said it agreed to acquire Deluxe Check Printers Inc's <DLX> 38 pct stake in Data Card Corp. National Computer said it plans to issue 45 mln dlrs in five year subordinated convertible debentures to purchase the 3,749,401 shares of Data Card from Deluxe. Completion of the proposed transaction, subject to regulatory approval, is expected in mid-July, it said. The debenture will bear an increasing rate of interest over its term, with a 7.3 pct weighted average rate and will be convertible into National Computer common stock at 20 dlrs a share, it said. Separately, Deluxe said its Data Card investment no longer fits its business strategy. Deluxe has held an interest in Data Card since 1975 when it provided funds for Data Card to buy Troy Computer Products Corp. In November 1986, Data Card said it planned to sell its Troy division. Reuter 19-JUN-1987 10:03:25.94 nigeria RM f0913 reute f f BC-DEBT-RESCHEDULING-PAC 06-19 0016 ****** 19-JUN-1987 10:07:15.03 canada E f0929 reute d f BC-CANADIAN-TAX-REFORM-C 06-19 0096 By Larry Welsh, Reuters OTTAWA, June 18 - Canada's sweeping tax reform package, announced today, is an important step towards a fairer system, but is not as bold a revamp of the tax structure as some had expected, economists and business leaders said. "It's the biggest step towards tax reform we've taken in a great many years," Merrill Lynch Canada Inc chief economist Michael Manford told Reuters. "But the system is the same old system with a lot of important changes, as opposed to a brand new system," he added. Manford said changes introduced by Finance Minister Michael Wilson did not go far enough in simplifying the federal tax system. They represent evolutionary rather than revolutionary reform. "Overall, I thought that it was a more timid step than we were led to believe," he said. Wilson's move to increase money collected from corporations while cutting individual taxes "is probably an acceptable shift," said Bill James, president of Falconbridge Ltd, an international mining company. Wilson spread corporate tax increases fairly evenly across the corporate sector, James said. "So it's not going to hit anyone too hard and we will remain competitive." Wilson said in his speech to the House of Commons that Canada's tax system needed to be changed to compete with sweeping reforms in the United States last year. "The critical thing on the corporate side is that Wilson moved most of the taxes much closer to the U.S. System," Manford said. The federal government increased taxes paid by corporations by about five billion dlrs over the next five years, but lowered personal taxes by 11 billion dlrs in the same period. Despite collecting more corporate taxes, Wilson was able to lower the tax rate on individual companies by removing many special tax exemptions and broadening the tax base. Wilson's plan also reduced the capital cost allowance, used by companies to write off major investments, which some business spokesmen said will hurt business in the long run. "That will affect some investment decisions negatively," said Laurent Thiebeault, Canadian Manufacturers Association president. Tax analysts said for some industries it will take several days to assess the impact of the capital cost allowance reductions that will be made over a number of years. As anticipated, Canada's opposition parties signalled they intend to fight the new tax measures as they are introduced in Parliament over the next few months. "It's not tax reform, it's a tax grab," said Liberal leader John Turner. Turner labelled changes to the federal sales tax "a money machine for the minister of finance." Wilson broadened the federal sales tax to include additional products and also promised to introduce a broad-based, multi-staged sales tax. "It's not at all a fair package and Canadians are going to see that very quickly," New Democratic Party leader Ed Broadbent said. However, economist Manford said Wilson acted wisely to protect lower income Canadians by providing tax credits that will cut 850,000 people from the tax rolls. Reuter 19-JUN-1987 10:10:39.23 france C G T f0937 reute u f BC-WET-WEATHER-NO-REAL-P 06-19 0112 PARIS, June 19 - The wet, cold weather which has shrouded northern Europe recently is not a real problem for farmers yet, a spokeswoman for France's largest farm union, FNSEA, said. The bad weather has only affected the northern part of France while the Mediterranean region needs more moisture. Sugar beet producers said the climatic conditions are not causing them any difficulties yet although there could be problems if there is a lack of sun in the next few weeks. The only real problem is for fruit producers in the north as people are consuming less fresh fruit and excessive rain rots the crop, she said. Reuter 19-JUN-1987 10:11:08.00 acq usa F f0938 reute d f BC-MICROSEMI-<MSCC.O>-AC 06-19 0082 SANTA ANA, Calif., June 19 - Microsemi Corp, a supplier of semiconductor products and assemblies, said it has acquired the operating assets of <Hybrid Components Inc> for 2.2 mln dlrs in cash. Microsemi said the purchase includes the fixed assets, software, inventories, technology, intellectual properties and other business operations of HCI. The company said HCI will continue to operate its Beverly plant as a subsidiary of Microsemi. Reuter 19-JUN-1987 10:11:30.84 uknigeria RM f0940 reute b f BC-NIGERIA-MAY-SIGN-DEBT 06-19 0103 LONDON, June 19 - A target date of mid-September has been set for the signing of a package rescheduling Nigeria's medium term public sector debt and outstanding letter of credit claims, Nigeria and Barclays Bank Plc said in a joint statement. The statement was issued during the last of a two day meeting here between the two sides. Barclays is a co-chairman of the commercial bank steering committee. The statement said, "Further progress has been made in the 1986/87 rescheduling of medium term public sector debt and outstanding letter of credit claims." REUTER 19-JUN-1987 10:12:43.61 usa F f0942 reute s f BC-CITIZENS-FIRST-BANCOR 06-19 0026 GLEN ROCK, N.J., June 19 - Qtly div 15 cts vs 15 cts previously Pay August One Record July 22 Reuter 19-JUN-1987 10:12:53.43 usa F f0943 reute r f BC-THERAGENICS-<THRX.O> 06-19 0059 ATLANTA, June 19 - Theragenics Corp said it will receive a U.S. patent on its TheraSeed localized radiation therapy for treatment of prostate cancer, effective June 23. It said it has obtained product liability insurance for Theraseed and expects commercial sales and distribution to start by July 15. Reuter 19-JUN-1987 10:14:20.43 trade usa reagan V RM f0948 reute u f BC-REAGAN-SAYS-TRADE-BIL 06-19 0099 WASHINGTON, June 19 - President Reagan said he would veto a House-passed trade bill requiring mandatory retaliation for "unfair trade" if it reached its desk in its present form. In a statement at a White House meeting with Senate Republicans on the legislation, he said: "I would have no choice but to veto that bill in its present form." He said the measure "would move us exactly in the wrong direction" towards high tariffs, trade barriers, trade distorting subsidies, slow growth and crimped world markets, and would destroy jobs. Reuter 19-JUN-1987 10:15:19.78 sudan imf RM f0951 reute u f BC-SUDAN-BOOSTS-BUDGET-C 06-19 0083 KHARTOUM, June 19 - Sudan has set aside 781.6 mln dlrs to service foreign debts in 1987/88, according to budget plans presented to parliament. This compares with 200 mln dlrs earmarked for debt repayment in the year ending June 30. Sudan has a foreign debt totalling 10.6 billion dlrs. Finance Minister Beshir Omar, presenting plans to parliament last night, put the budget deficit at 2.88 billion pounds, against 2.85 billion in 1986/87. He said the budget would be the first in a four-year economic recovery plan to be announced by the end of December. Of the total set aside for debt servicing, Omar said 574.6 mln dlrs would go to principal and 207 mln to interest payments. Sudan has an annual debt liability of 900 mln dlrs, Khartoum-based Western experts say. Omar said last March it would be difficult, "if not impossible," for Sudan to meet scheduled debt repayments of 4.17 billion dlrs over the next five years. He said last night Sudan was 2.6 billion dlrs in arrears on debt repayments in the first half of this year. The experts say Sudan owes 23 pct of its foreign debt to Western government creditors, 32 pct to governments of Eastern bloc and Arab countries and 21 pct to commercial banks, with most of the rest owed to multilateral sources. Sudan, unable to fully service its debts since 1985 and declared ineligible last year by the International Monetary Fund for fresh loans, has been servicing only creditors banned from extending fresh loans to recipients in arrears. Omar said government revenue in 1987/88 would total 3.9 billion pounds. Expenditure was put at 6.79 billion pounds. He said the budget deficit would be fully covered by loans, government deposits and other sources. Omar said 375 mln pounds would be spent on subsidising sugar and wheat flour prices in 1987/88. He said some of Sudan's Western backers were witholding aid until an agreement with the IMF was reached. Sudan, which owes the IMF 450 to 500 mln dlrs in arrears, is scheduled to hold fresh talks with the Fund in late July or August on reforming its economy and clearing arrears. REUTER 19-JUN-1987 10:16:28.55 graincornrice ghana C G T f0959 reute d f BC-GHANA-LIFTS-RICE/MAIZ 06-19 0100 ACCRA, June 19 - Ghana has lifted a ban on rice and maize imports due to crop problems caused by unusually dry weather, the official Ghana News Agency (GNA) reported today. Secretary for Finance and Economic Planning Kwesi Botchwey made the announcement last night while accepting 7,891 tonnes of rice worth about four mln dlrs under a Japanese food aid programme. The lifting of the ban, imposed earlier this year, follows government concern over "lower than average rainfall in southern Ghana and its implications for the major harvest." Botchwey said rain has been lacking in major cereal growing areas throughout the south this year. The Ministry of Agriculture has predicted a fall of at least 25 pct in all major staple crops including maize, rice and cassava. GNA quoted Botchwey as saying that while the consequences of current reduced rainfall will be nowhere near the drought experiences of 1982/83 the government has taken steps to alleviate anticipated food production shortfalls. The failure of seasonal rains has already seriously affected drinking water supplies, farming and fishing in parts of the Central and Volta regions of Ghana where rivers have dried up. Reuter 19-JUN-1987 10:16:54.08 usa F f0963 reute s f BC-<MICROTEL>-TO-LOWER-L 06-19 0041 BOCA RATON, FLA., June 19 - Microtel, a fiber optic long distance company, said it plans to lower rates for interstate one plus dialing by 4.8 pct and LaserPLUS WATS service by 7.4 pct, effective July 15. Reuter 19-JUN-1987 10:22:34.12 interest uk leigh-pemberton RM f0981 reute u f BC-U.K.-CENTRAL-BANK-WAR 06-19 0094 LONDON, June 19 - Bank of England governor Robin Leigh-Pemberton said lowering interest rates too fast could jeopardise recent economic achievements in the U.K. In remarks prepared for delivery to businessmen in Birmingham, he said prospective returns on real investment are more favourable, relative to those on financial assets, than for a good number of years. "It would surely be foolish to put that favourable conjuncture at risk by lowering interest rates prematurely or excessively," he said. "We might enjoy a short-term boost to activity, but at the risk of a damaging return to the uncertainty and acrimony of high inflation," he added. Leigh-Pemberton said he recognised there are some who would argue that interest rates are still too high and deter investment in industry. "But we should not forget that less than a year ago we were intervening to support sterling and had some temporary difficulty in persuading the markets that a one pct increase in base rates, to 11 pct, was a sufficient tightening of policy at the time," he added. Base rate is currently nine pct. REUTER 19-JUN-1987 10:23:28.94 F f0982 reute f f BC-AMERICAN-GREETI 06-19 0009 ****** 19-JUN-1987 10:26:28.52 grainwheat uk ec C G f0988 reute u f BC-EC-FARM-PRICE-TALKS-F 06-19 0103 LONDON, June 19 - There will be no serious bids at European Community open market tenders for wheat and barley until EC farm ministers agree to the 1987/88 farm price package, trade sources said. The failure of farm ministers this week to come to an agreement resulted in no bids at this week's tender for export subsidies and traders said bids are unlikely as long as the uncertainty remains. One trader said permanent damage to export prospects can be avoided if an agreemend can be reached soon, but the situation will become more serious as time passes. However, traders said there seem to be few buyers around, lessening the disruptive impact of the delay. Poland and South Korea, who are in the market for feed wheat, will be offered intervention grain through special tenders, traders said. Reuter 19-JUN-1987 10:29:42.29 earn usa F f0999 reute b f BC-AMERICAN-GREETINGS-CO 06-19 0030 CLEVELAND, June 19 - Period ended May 31 Shr 42 cts vs 53 cts Net 13,600,000 vs 17,100,000 Revs 263.3 mln vs 243.8 mln Reuter 19-JUN-1987 10:29:57.88 earn usa F f1001 reute b f BC-AMERICAN-GREETINGS-CO 06-19 0030 CLEVELAND, June 19 - Period ended May 31 Shr 42 cts vs 53 cts Net 13,600,000 vs 17,100,000 Revs 263.3 mln vs 243.8 mln Reuter 19-JUN-1987 10:30:02.96 usa F f1002 reute u f BC-TEXAS-INSTRUMENTS-INC 06-19 0045 DALLAS, June 19 - Qtly div 18 cts vs 16.6 cts prior Pay July 20 Record June 30 NOTE: Prior payment adjusted for three-for-one stock split. In April, company had announced its intention to raise the dividend. Reuter 19-JUN-1987 10:30:11.12 usa F f1003 reute u f BC-HEALTHCARE-SERVICES-< 06-19 0090 BIRMINGHAM, Ala., June 19 - Healthcare Services of America Inc said its chairman and chief executive officer, Charles Speir, resigned and its president and chief operating officer, Thomas Rodgaers Jr, was relieved of his duties. Michael Cronin will take over as chairman and Michael Murphy as acting president and chief executive officer, the company said. Cronin has been a director of the company since 1983 and Murphy has been a consultant to the compay, Healthcare Services said. Reuter 19-JUN-1987 10:30:29.11 earn usa F f1005 reute u f BC-TEXAS-UTILITIES-CO-<T 06-19 0033 DALLAS, June 19 - Shr 4.61 dlrs vs 4.28 dlrs Net 663.3 mln vs 590.8 mln Rev 4.03 billion vs 4.06 billion Avg shares 143.9 mln vs 138.2 mln Reuter 19-JUN-1987 10:36:48.89 usa F f1033 reute r f BC-NATIONAL-FUEL-GAS-CO 06-19 0046 NEW YORK, June 19 - Qtrly 57 cts vs 30 cts Pay July 15 Record June 30 NOTE: recent dividend based two-for-one stock split effected Wednesday, June 17. Based on pre-split shares the dividend would have been 60 cts. Reuter 19-JUN-1987 10:36:56.10 usa F f1034 reute d f BC-GTE-<GTE>-UNIT-GETS-C 06-19 0068 NEW YORK, June 19 - GTE Corp said its Fiber Optic Products division was awarded a 250,000 dlr minimum contract by NYNEX Corp's <NYN> Enterprise Co. The bulk of the agreement applies to GTE's elastomeric glass tube splice products, the company said, as well as other fiber optic components, including GTE's recently-introduced cleaving tool and installation kit. Reuter 19-JUN-1987 10:37:00.40 usa F f1035 reute h f BC-KAYPRO-<KPRO.O>-DEALE 06-19 0044 ANCHORAGE, Alaska, June 19 - <Alaska Micro Systems>, a Kaypro dealer, said the Anchorage School District chose it to provide 116,000 dlrs of computer equipment to Chugiak High School for computer and typing classes. Reuter 19-JUN-1987 10:37:08.93 earn usa F f1036 reute h f BC-BOSTON-DIGITAL-CORP-< 06-19 0072 MILFORD, MASS., June 19 - Period ended April 30 Shr profit nil vs loss eight cts Net profit 4,000 vs loss 213,000 Sales 3,668,000 vs 2,602,000 Year Shr loss 18 cts vs loss 23 cts Net loss 482,000 vs loss 614,000 Sales 12.5 mln vs 13.6 mln NOTE: 1987 earnings in each period include a provision for unrealized loss on marketable securities of 176,000 dlrs Reuter 19-JUN-1987 10:37:12.54 usa F f1037 reute s f BC-FEDERATED-FINANCIAL-S 06-19 0034 MILWAUKEE, June 19 - Qtly div 8.5 cts vs 8.5 cts prior Pay Aug Five Record July 20 NOTE: Federated Financial Savings and Loan Association. Reuter 19-JUN-1987 10:38:30.21 acq usa F f1040 reute d f BC-COLONIAL-BANCGROUP-<C 06-19 0059 MONTGOMERY, Ala., June 19 - Colonial Bancgroup said it agreed to buy <First National Bank of Destin> for an undisclosed sum. The company said if it is approved, the sale will mark its second move to acquire a Florida bank. It said it signed a letter of intent to buy Liberty Bank of Pensacola in April. Reuter 19-JUN-1987 10:39:33.07 acq usa F f1043 reute b f BC-CHRYSLER-<C>-HAS-NO-P 06-19 0085 DETROIT, June 19 - Chrysler Corp said it has no intention of increasing its offer for Electrospace Systems Inc <ELE>. Chrysler agreed to purchase the Texas-based defense electronics contractor in a tender offer of 27 dlrs a share for a total value of about 367 mln dlrs. Eletrospace shares closed yesterday on the NYSE at 30-1/8. "We have no intention of increasing the offer," a company spokeswoman said. "We believe it is adequate and will be accepted." She said the proposed transaction was unanimously recommended by the board of directors and principal shareholders of Electrospace. Further, she noted that the 27 dlrs tender offer price is 50 pct above the price of Electrospace's shares before April 30 when it put itself up for sale. Reuter 19-JUN-1987 10:40:13.15 crude Y E f1047 reute f f BC-TEXACO-CANADA-R 06-19 0016 ****** 19-JUN-1987 10:40:42.59 usa F f1053 reute r f BC-ARMCO-INC-<AS>-UNIT-F 06-19 0107 PARSIPPANY, N.J., June 19 - Armco said its Northern Automatic Electric Foundry Co unit formed a joint venture company with Stelco Inc <STE.TO> unit Stelco Erie Corp. The companies said the new firm, which will be called M.E. International, will represent an investment of 15 mln dlrs for the companies involved. They said the venture will produce cast grinding media and mill liners for the mining industry. The companies said the venture will also include the assets of the Evans Duluth Steel Castings Co which have been bought from the Evans Asset Holding Co for an undisclosed sum. Reuter 19-JUN-1987 10:43:19.31 usa A RM f1065 reute d f BC-COMPUTER-PRODUCTS-<CP 06-19 0109 NEW YORK, June 19 - Computer Products Inc is raising 35 mln dlrs through an offering of convertible subordinated debentures due 1997 with a 9-1/2 pct coupon and par pricing, said sole manager Robinson-Humphrey Co Inc. The debentures are convertible into the company's common stock at 4.625 dlrs per share, representing a premium of 23.33 pct over the stock price when terms on the debt were set. Non-callable for three years, the issue is rated B-3 by Moody's and CCC-minus by Standard and Poor's. The gross spread is 38.75 dlrs, the selling concession is 20 dlrs and the reallowance is 10 dlrs. Reuter 19-JUN-1987 10:44:04.80 usa F A f1066 reute r f BC-FEDERATED-FINANCIAL-< 06-19 0102 MILWAUKEE, Wis., June 19 - Federated Financial Savings and Loan Association said it wrote off its FSLIC secondary reserve balance, previously carried as an asset, as required by the Federal Home Loan Bank Board. The reduction of income is estimated to be 16 cts per share, but the company said it will record a profit for the third quarter ending June 30. Federated said the elimination of the reserve will not affect its ability to pay dividends to stockholders and will have a minimal impact on annual profits for the fiscal year ending Sept 30, 1987. Federated said the secondary reserve consists of previous contributions to the FSLIC fund in excess of insurance premiums, along with accumulated earnings on those contributions. Reuter 19-JUN-1987 10:44:16.03 usa F f1067 reute d f BC-NORTHEAST-SAVINGS-<NE 06-19 0034 HARTFORD, Conn., June 19 - Northeast Savings said its board declared an initial quarterly dividend of 15 cts per share, payable August One, record July 17. Reuter 19-JUN-1987 10:44:20.52 F RM f1068 reute f f BC-S/P-WITHDRAWS-R 06-19 0011 ****** 19-JUN-1987 10:44:49.51 usa F f1071 reute u f BC-NETWORK-SECURITY-<NTW 06-19 0058 DALLAS, June 19 - Network Security Corp said three of its major shareholders have executed definitive agreements to sell their shares to Inspectorate International <INSZ.Z> SA. The company said its previously-announced merger into Inspectorate is still subject to approval by Network shareholders. Reuter 19-JUN-1987 10:45:03.89 usa F f1072 reute r f BC-MELAMINE-CHEMICALS-FI 06-19 0097 DONALDSONVILLE, La., June 19 - <Melamine Chemicals Inc> said it has filed for an initial public offering of 2,800,000 common shares through underwriters led by PaineWebber Group Inc <PWJ>. The company said it will sell 1,400,000 shares and the rest will be sold by Ashland Oil Inc <ASH> and First Mississippi Corp <FRM>, Melamine's two shareholders. Proceeds will be used to build a new melamine plant, buy the existing plant from Ashland and First Mississippi and part of a special dividend to Ashland and First Mississippi. In Ashland, Ky., Ashland Oil said it is selling 700,000 shares and First Mississippi 700,000 of Melamine. Reuter 19-JUN-1987 10:46:15.93 usa F f1076 reute d f BC-AMERICAN-FEDERAL-SAVI 06-19 0039 DENVER, June 19 - Qtly div 75 cts vs 75 cts prior Pay July 14 Record June 30 Note:the company's full name is American Federal Savings and Loans Association of Colorado Reuter 19-JUN-1987 10:46:25.47 interest uk RM f1077 reute u f BC-U.K.-LENDERS-OFFER-MO 06-19 0095 By Norma Cohen, Reuters LONDON, June 19 - More U.K. Lenders are offering homebuyers fixed interest rate mortgages under which the borrower makes the same monthly payment no matter what happens to other interest rates. And with mortgage rates now at their lowest levels in years, the loans have been snapped up by eager home buyers trying to lock into cheap money. The decision to offer fixed rate loans, industry officials said, reflects the increasingly competitive nature of the home mortgage business. While fixed rate mortgages are uncommon in the U.K., They were the mainstay of the business in the U.S. Up until only a few years ago. But in the early 1980s interest rates soared. U.S. Lenders, mostly savings and loan associations, were earning rates as low as three pct on 30 year fixed rate mortgages they held in their portfolios but had to pay depositors rates as high as 15 pct to induce them to retain their accounts. As a result hundreds of institutions collapsed or were forced to merge. The survivors decided to offer mortgages whose rates would move in line with the cost of funds. "We very much have the example of the U.S. Thrifts in mind," said a spokesman for Abbey National Building Society, explaining why his institution, for the time being, is only offering variable rate mortgages. The rash of advertising to solicit new business has helped homebuyers to become even choosier about loans and lenders concede they are being forced to undercut each other still more. Sharp cuts on variable rate mortgages announced earlier this week by the nation's two largest building societies and by National Westminster Bank Plc reflect growing competition for new business, officials at all three institutions said. The fixed rate mortgages on offer carry interest rates even below those on the variable rate loans. "Of course they are less profitable than other (variable rate) mortgages," said a spokesman for Midland Bank Plc, which earlier this year said it earmarked 500 mln dlrs for fixed rate new mortgage loans. But he said the bank is willing to offer less profitable loans because, "It was just another way to attract people to our mortgage product." Trustee Savings Bank Plc (TSB) was offering five year fixed rate mortgages at 9.9 pct earlier this year. The 100 mln stg that TSB set aside for the loans was exhausted within just a few days, according to a spokeswoman. "Everybody loves an under 10 pct mortgage," she said, noting that within five days the bank loaned the equivalent of 25 pct of its 1986 volume. In short, the appeal of fixed rate mortgages is that they offer an opportunity to gamble on the direction of interest rates. If interest rates fall after the mortgage is made the lender is earning an above average return on assets. But if interest rates rise it is the homebuyer who has won the benefit of cheap money. Household Mortgage Co had planned to offer a 25 year fixed rate mortgage after the June 11 elections on the assumption that a Conservative Party victory would help money market rates fall further, according to Duncan Young, managing director. Young explained that the company had planned to protect itself against the chance of rising interest rates by buying a complicated hedging instrument. But money market rates have risen contrary to expectations and the company has shelved its plans for the time being. He said money market rates were too high to arrange both the mortgages and hedge profitably. However, he said that when the Household Mortgage Co does make fixed rate mortgages it is likely to securitise them. This means bundling different mortgages together to resemble a bond and selling them to an investor. For technical reasons securitisation is simpler and more efficient with fixed rate rather than with floating rate mortgages. In the U.S., Where fixed rate mortgages are popular again, securitisation has provided the bulk of mortgage money over the past few years. REUTER 19-JUN-1987 10:47:36.35 usa F f1087 reute s f BC-FEDERATED-FINANCIAL-< 06-19 0038 MILWAUKEE, Wis., June 19 - Qtly div 8.5 cts vs 8.5 cts Pay August five Record July 20 NOTE: Full company name is Federated Financial Savings and Loan Association. Reuter 19-JUN-1987 10:52:09.47 crude usa Y E f1102 reute u f BC-TEXACO-<TXC>-CANADA-T 06-19 0076 NEW YORK, June 19 -- Texaco Inc's Texaco Canada said it will raise postings for its Edmonton/Swann Hills crude by 24 canadian cts a barrel, effective June 20. The company said the new posting for Edmonton/Swann Hills will be 25.60 dlrs a barrel. The price hike follows a round of crude oil price increases started late June 17 by Sun Co. The other major canadian crude suppliers raised prices June 18. Reuter 19-JUN-1987 10:52:29.56 usa F f1103 reute d f BC-ALLIANCE-FEDERAL-CORP 06-19 0025 DEARBORN, MICH., June 19 - Qtly div 25 cts vs 22 cts prior qtr Pay 20 July Record 30 June Reuter 19-JUN-1987 10:53:53.52 usa F f1111 reute d f BC-ACTIVISION-<AVSN.O>-R 06-19 0104 MOUNTAIN VIEW, Calif., June 19 - Activision said it has released a new version of Paintworks Plus, a creativity and self-expression program, called Version 1.01. The new version, for use on the Apple Computer Inc <AAPL.O> Apple IIGS, includes a variety of features and functions not incorporated in the original program, Activision said. The company added that registered owners of Paintworks Plus can get Version 1.01 free by submitting the front cover of their program manual as proof-of-purchase. For others, the program sells for 79.95 dlrs, Activision said. Reuter 19-JUN-1987 10:53:57.40 usa F f1112 reute s f BC-ILLINOIS-TOOL-WORLS-I 06-19 0024 CHICAGO, June 19 - Qtly div 10 cts vs 10 cts prior qtr Pay 1 September Record 6 August Reuter 19-JUN-1987 10:55:34.37 usa F f1117 reute s f BC-UNIVERSITY-BANK-AND-T 06-19 0025 NEWTON, MASS., June 19 - Qtly div five cts vs five cts prior Pay July 15 Record June 30 Reuter 19-JUN-1987 10:55:59.85 reserves norway RM f1118 reute u f BC-NORWEGIAN-CENTRAL-BAN 06-19 0102 OSLO, June 19 - Norway's central bank reserves totalled 73.71 billion crowns in May against 76.06 billion in April and 95.02 billion in May 1986, the Central Bank said in its monthly report. Foreign exchange reserves totalled 70.3 billion crowns, compared with 68.4 billion in April and 88.0 billion a year ago. Gold reserves were unchanged from April's 284.8 mln crowns, and also unchanged from the year-ago figure. Central Bank special drawing right holdings were 3.16 billion crowns, compared with 3.06 billion in April and 2.51 billion in May 1986. REUTER 19-JUN-1987 10:56:18.98 ship west-germany C G T M f1120 reute r f BC-HIGH-WATER-EXTENDS-RH 06-19 0133 BONN, June 19 - Rising water levels on the Rhine caused by heavy rain are delaying an operation near Karlsruhe to raise two sunken boats which have blocked the river's main navigation channel since early last week, a Karlsruhe water authority spokesman said. He said two floating cranes were unable to begin lifting the sunken tug Orinoko and its lighter because the water level had reached 815 centimetres and was forecast to rise to 820-830 cm by tomorrow. He was unable to say when the operation might begin. Meanwhile, high water at Cologne has forced vessels to travel at reduced speed, a water authority spokesman in Cologne said. But a water authority spokesman in Duisburg, 60 kms north of Cologne, said vessels there were moving normally. Reuter 19-JUN-1987 11:02:13.97 netherlands ruding RM f1142 reute u f BC-DUTCH-TO-MEET-1987-PU 06-19 0117 THE HAGUE, June 19 - Dutch public authorities are on course to meet the 1987 public sector deficit target of 7.9 pct of net national income (NNI) despite excess spending by the central government, according to a leaked official report. The so-called Spring Report, giving latest revenue and expenditure figures and to be discussed by the Dutch cabinet today, was leaked in advance to the Dutch press. The Dutch Finance Ministry declined to comment on the press reports. Newspapers quoted the report, drafted by Finance Minister Onno Ruding, as saying unexpected rises in revenue would compensate for excess spending of 3.1 billion guilders. Ruding, putting this year's public sector borrowing requirement 0.1 percentage point below last September's target at 7.8 pct, criticised the excess spending but will not seek additional spending cuts for 1987 because of the surprise boost in revenue, the report was quoted as saying. Excess spending by the central government was put at 2.8 billion guilders, while market factors accounted for another 300 mln in unbudgetted expenditure. But 1987 revenue was boosted by an unexpected 3.55 billion, including 1.9 billion in tax revenue and 500 mln guilders in income from natural gas sales. Ruding has said the 1987 excess spending will burden the 1988 budget with an additional 1.9 billion and the cabinet has already pledged 1.2 billion in cuts to narrow the gap. The cabinet is to discuss in coming months what further austerity measures will be needed next year to keep the government on target for its 1990 aim of a public sector borrowing requirement of no more than 5.25 pct of NNI. Ruding has already met opposition from the Liberal and Christian-Democrat factions carrying the government majority in parliament to his calls for more spending cuts in the 1988 budget to counter a slow-down in economic growth. REUTER 19-JUN-1987 11:05:20.54 interestmoney-fx usa V RM f1158 reute b f BC-/-FED-EXPECTED-TO-ARR 06-19 0110 NEW YORK, June 19 - The Federal Reserve is likely to add temporary reserves to the banking system this morning by executing system repurchase agreements, economists said. The Fed faces a need to add a large volume of reserves this statement period to offset a drain caused by rising Treasury balances at the Fed after the June 15 tax date. Most economists are predicting over-the-weekend system repurchases. But some, who see a smaller adding requirement, are forecasting a less aggressive combination of three- and six-day repos. Fed funds were trading at 6-3/4 pct, close to yesterday's 6.81 pct average. Reuter 19-JUN-1987 11:05:41.95 acq F f1161 reute b f BC-GREYHOUND-LINES 06-19 0012 ****** 19-JUN-1987 11:06:20.60 usa F f1163 reute r f BC-FORD-<F>-UNIT-TO-BUIL 06-19 0075 DEARBORN, Mich., June 19 - Ford Motor Land Development Corp, a wholly owned real estate subsidiary of Ford Motor Co, said it will build a 48,000 square foot facility for (Tokico America Inc) in return for a long-term lease. Terms were not disclosed. Tokico, an automotive parts and robotics supplier, is a subsidiary of (Tokico Ltd) of Japan. Ford said it is Tokico's principal customer in the U.S. Reuter 19-JUN-1987 11:06:35.31 usa A RM f1165 reute u f BC-S/P-WITHDRAWS-RATINGS 06-19 0108 NEW YORK, June 19 - Standard and Poor's Corp said it withdrew the ratings on Caesars World Inc and unit Caesars World Finance Corp. The action affects 230.8 mln dlrs of debt. Withdrawn were Caesars World's BB senior debt and B-plus subordinated debt and the unit's B-plus subordinated debt. S and P said these issues are expected to be refinanced when Caesars World implements a recapitalization plan. The agency assigned a B-plus rating to Caesars World's proposed 330 mln dlr issue of seven-year senior notes and a B-minus grade to its 330 mln dlrs of subordinated debentures due 1999. Standard and Poor's noted that the recapitalization plan of Caesars World calls for the payment of a 26.25 dlr per share dividend totaling 929.3 mln dlrs. The recapitalization plan will be financed by the seven-year note and 12-year debenture issues, 300 mln dlrs in bank and other debt, and by cash on hand, S and P noted. The agency said that Caesars World's debt will rise to 1.1 billion dlrs from about 319.2 mln on April 30 and the firm will have stockholders' deficit of 508.8 mln dlrs. S and P said it does not expect a meaningful reduction of debt for the next several years. Reuter 19-JUN-1987 11:09:37.37 usa F f1180 reute d f BC-SAN-JUAN-BASIN-ROYALT 06-19 0027 FORT WORTH, Texas, June 19 - Mthly div 3.9543 cts vs 3.4261 cts last month Payable July 15 Record June 30 Reuter 19-JUN-1987 11:12:33.32 F f1194 reute b f BC-MAY-DEPARTMENT 06-19 0010 ****** 19-JUN-1987 11:13:09.79 usa nyse F Y f1197 reute u f BC-NYSE-SEEKS-COMMENT-FR 06-19 0079 NEW YORK, June 19 - The New York Stock Exchange said Tesoro Petroleum had replied that it did not comment on unusual market activity or rumors when asked by the NYSE about the company's stock rise. The NYSE said it had asked the company to issue a public statement indicating whether there are any corporate developments that may explain the unusual activity. Tesoro's shares rose 7/8 to 14-1/2 in morning trading. Reuter 19-JUN-1987 11:13:47.98 acq usa F f1201 reute u f BC-GREYHOUND-AGREES-TO-A 06-19 0100 DALLAS, June 19 - <Greyhound Lines> said it agreed to acquire the routes of <Trailways Corp>. Greyhound said it had petitioned the Interstate Commerce Commission for authority to acquire and operate Trailways' routes, 450 of its 1200 buses and some of its terminals and garages. Trailways has abandoned all service in seven states in the past year and more than half of its sevice in three other states, the company said. "Without intervention, the collaspe of Trailways is imminent," said Fred Currey, chairman and president of Greyhound. Reuter 19-JUN-1987 11:14:09.54 usa F f1205 reute h f BC-PERMIAN-BASIN-ROYALTY 06-19 0026 FORT WORTH, TEXAS, June 19 - Mthly div 3.8784 cts vs vs 4.3742 cts prior Pay July 15 Record June 30 Reuter 19-JUN-1987 11:15:12.08 usa amex F f1208 reute r f BC-AMEX-STARTS-TRADING-S 06-19 0030 NEW YORK, June 19 - The American Stock Exchange said it has started trading the common stock of Sherwood Group Inc, which went public today. Reuter 19-JUN-1987 11:17:25.47 spain RM f1216 reute u f BC-SPAIN-PLANS-TARIFF-OV 06-19 0094 By Andrew Hurst, Reuters MADRID, June 19 - Spain's socialist government is aiming to restore confidence of foreign banks in its power generation sector by pushing through a complete reform of the industry's tariff structure, a senior government official said. Most foreign banks have been refusing to extend fresh loans to the mainly privately-owned sector since Fuerzas Electricas de Catalunya S.A. (FECSA), a major utility, defaulted on two billion dlrs of foreign currency debt earlier this year. Secretary of State for the Economy, Guillermo De la Dehesa, told Reuters in an interview that a new government-inspired tariff mechanism providing for automatic increases each year would guarantee the long term viability of the industry. He said a bill would be sent before the Spanish Cortes (parliament) this summer, enabling tariff increases from next year to be set under the new system. De la Dehesa declined to give technical details of the scheme, known here as the "Marco Estable" (stable framework), but said future tariff increases would make up for the failure of past adjustments to cover rising costs. "The utility companies have a captive market and if they are assured a satisfactory tariff structure they will have the best of all possible worlds to do business in," De la Dehesa said. FECSA's debt crisis has caused concern among foreign and Spanish bankers who expressed fears that other utility companies may default for lack of fresh funds unless confidence in the industry's future is restored. Spain's 14 leading power utilities have massive debts, with short and medium term exposure of 4,377 billion pesetas at the end of last year. A significant proportion of it is in foreign currency, bankers say. The new tariff plan, currently being discussed with representatives of the utility industry and Spanish bankers, would shortly be presented to foreign creditors, De la Dehesa said. FECSA's problems were precipitated in February when the stock exchange suspended trading in the company's stock on the grounds that it could not meet its debts. "FECSA was a special case," De la Dehesa said, "but the banks took fright and extended the crisis to the rest of the utility sector. We really did not expect this." Much foreign bank lending to the utility sector has been on the strength of a government commitment made to international bankers at a presentation in London in 1983 to support the industry. "I think if foreign banks were lending on the basis of declarations by our energy authorities in London, they will have all the more reason to do so when the new tariff system is passed into law," De la Dehesa said. "This is going to be a palpable fact, not just a declaration," he added. De la Dehesa said he believed that once confidence was restored in the sector as a whole, FECSA's debt problems would be quickly solved. A recently formed steering committee representing FECSA's foreign creditors is due to meet FECSA managers in Barcelona on Tuesday for a round of talks on rescheduling the ailing utility's debt. FECSA's General Manager, Jose Zaforteza, told Reuters he thought the climate of the talks would be greatly improved by the new tariff proposals. "You cannot go far wrong when you are managing an electrical utility provided the tariffs you charge are sufficient to cover your costs," Zaforteza said. The General Manager of the Madrid branch of a U.S. Bank which has lent money to FECSA said there would be little significant progress in the rescheduling talks until details of the tariff proposals were known. "We cannot make any projections about FECSA's ability to pay its debts unless we know what the tariffs are going to be," he said. "If you make annual increases over a period of years of four, five or six pct, in each case it's a completely different ball game," he said. REUTER 19-JUN-1987 11:17:33.48 usa A RM f1217 reute u f BC-PNC-FINANCIAL-<PNCF.O 06-19 0107 NEW YORK, June 19 - Standard and Poor's Corp said it affirmed the ratings on 500 mln dlrs of debt of PNC Funding Corp, a unit of PNC Financial Corp. Affirmed were PNC Funding's AA-plus senior debt and A-1-plus commercial paper. Also affirmed were the parent's AA preferred stock and the AA-plus/A-1-plus certificates of deposit of Pittsburgh National Bank, Provident National Bank and Citizens Fidelity Bank and Trust Co. S/P said PNC's 110 mln dlr provision will reduce second quarter earnings by 66 mln dlrs. The reserve for developing countries is now 35 pct of loans to these countries. Reuter 19-JUN-1987 11:17:39.53 grainwheat france C G f1218 reute b f BC-TUNISIA-BUYS-150,000 06-19 0078 ****PARIS, June 19 - Tunisia has bought 150,000 tonnes of French soft wheat for August to December shipment at 76.70 dlrs per tonne fob with COFACE export credit, trade sources said. This is the second French soft wheat export sale for the 1987/88 season which starts on July 1 and follows a Brazilian purchase of 150,000 tonnes. France sold around 300,000 tonnes of soft wheat to Tunisia during the 1986/87 season. Reuter 19-JUN-1987 11:19:33.75 usa F f1223 reute r f BC-MEDFORD-SAVINGS-APPRO 06-19 0075 MEDFORD, Mass., June 19 - <Medford Savings Bank> said it received Federal Reserve Board approval to form a bank holding company. It said the holding company, to be known as Regional Bancorp Inc, will acquire all outstanding common shares of Medford Savings with one share of Medford Savings being converted into one share of Regional. Medford Savings said its total assets are about 408 mln dlrs. Reuter 19-JUN-1987 11:19:38.10 usa F f1224 reute h f BC-<VIRTUSONICS-CORP>-EX 06-19 0054 NEW YORK, June 19 -Virtusonics Corp said it extended to July 31 the period to exercise its outstanding warrants at 1.5 cts a share. The company on June 18 said it had reduced the exercise price of its warrants from 2.5 cts a common share for the period June 22 to July 22. Reuter 19-JUN-1987 11:19:45.37 usa F f1225 reute s f BC-MESA-LIMITED-PARTNERS 06-19 0042 AMARILLO, Texas, June 19 - Qtly div 50 cts vs 50 cts prior Pay Aug 14 Record July Eight NOTE: Partnership said it expects none of its common or preference dividends this year to be taxable. Reuter 19-JUN-1987 11:22:47.47 usa F f1237 reute r f BC-SPECTRAMED-INITIAL-OF 06-19 0045 NEWPORT BEACH, Calif., June 19 - Spectramed Inc said an initial public offering of 3,640,000 common shares is underway at 11 dlrs a share through underwriters led by Alex. Brown and Sons Inc <ABSB.O> and PaineWebber Group inc <PWJ>. Reuter 19-JUN-1987 11:24:26.80 france RM f1242 reute u f BC-BAII-DETAILS-ONE-BILL 06-19 0103 PARIS, June 19 - Banque Arabe et Internationale d'Investissement (BAII) will issue a one billion franc non-callable pre-placed bond in three tranches on July 8, lead manager Banque Nationale de Paris (BNP) said. Banque Indosuez will manage the 200 mln franc "A" tranche, issued at par with a life of nine years, paying interest based on the annualised money market rate (TAM) plus 0.10 pct. The 250 mln-franc "B" tranche, managed by Banque d'Arbitrage et de Credit (BAC), will be issued at par with a life of 10 years, paying interest at TAM plus 0.15 pct. The 550 mln-franc "C" tranche, managed by BNP and Banque Demachy et Associes, will be issued at par with a life of 11 years, paying interest at TAM plus 0.20 pct. REUTER 19-JUN-1987 11:25:51.73 usa F f1247 reute r f BC-FEDERATED-FINANCIAL-< 06-19 0067 MILWAUKEE, Wis., June 19 - Federated Financial Savings and Loan Association said per share earnings in fiscal 1987 ending September 30 will be reduced by about 16 cents a share due to the write-off of its secondary reserve with the Federal Savings and Loan Insurance Corp. The company did not specify the amount to be written off in the current year. Reuter 19-JUN-1987 11:26:45.15 belgium eyskens RM f1250 reute u f BC-EYSKENS-WANTS-102.1-B 06-19 0109 BRUSSELS, June 19 - Finance Minister Mark Eyskens is proposing a package of personal income tax cuts worth 102.1 billion francs that would apply from 1989, a finance ministry spokesman said. The package, one of 11 possible tax reform scenarios drawn up by government officials, is expected to be discussed by ministers in the coming weeks so that a government draft can be presented to parliament in October. The proposals, which would greatly simplify the country's tax system, include a cut in withholding tax on investment income earned in Belgium to 20 pct from the current 25 pct. The reduction would apply to income from risk capital, but the spokesman said this was likely to be defined to include all shares and bonds. The package chosen by Eyskens is more favourable to families with children than the present regime and would treat spouses' incomes separately instead of combining them, a practice that is widely seen as discouraging marriage. The tax reform does not encompass corporate taxation. The spokesman said some 75 pct of the cost of the package would be financed by changes to the 258 tax allowances currently granted to diverse interest groups. A further 14 pct would be met by higher tax revenues resulting from the overall macro-economic benefits of the package. This would leave a shortfall of around 20 billion francs, which the government would have to decide how to cover, either by raising indirect taxes or by making further budgetary cuts. The package favoured by Eyskens, who has described Belgium as a "fiscal Himalaya," is the least costly of the 11 scenarios prepared. It envisages three marginal rates, or tax thresholds, of 30 pct, 40 pct and 50 pct. This compares with 13 currently, of which the highest is 71.6 pct. REUTER 19-JUN-1987 11:27:57.14 usa F f1254 reute r f BC-<INTERNATIONAL-DESIGN 06-19 0056 MAITLAND, Fla., Jne 19 - International Design Group inc said holders of record on June 26 will receive rights to purchase two units at 10 cts each for each common share held. Each unit consists of one common share and one five-year warrant to buy one common share at 15.625 dlrs. Reuter 19-JUN-1987 11:28:36.62 usa F f1255 reute r f BC-NVHOMES-LP-<NVH>-SETS 06-19 0030 MCLEAN, Va., June 19 - Qtly div 20 cts vs 21 cts prior Pay July 31 Record July 1 NOTE: Partnership does not pay at regular rate. Reuter 19-JUN-1987 11:34:49.44 heat usa nymex Y F f1280 reute d f BC-U.S.-COURT-UPHOLDS-AP 06-19 0109 NEW YORK, June 19 - The U.S. Court of Appeals for the Second Circuit upheld a lower court decision dismissing a suit by Apex Oil Co against the New York Mercantile Exchange and several oil companies. The Court, however, ruled that Apex Oil could pursue anititrust and commodities market manipulation allegations against Belcher Oil Co, a unit of Coastal Corp <CGP>. Apex Oil, primarily a trading company, charged that several companies, including Belcher, and NYMEX conspired to force it to deliver heating oil it had sold on the mercantile exchange, knowing Apex could not make full delivery. The NYMEX ordered Apex to deliver four mln barrels of heating oil sold via a February 1982 heating oil contract. Apex eventually fulfilled this obligation but claimed damages. Richard Wiener, attorney for Apex at Cadwalader Wickersham and Taft, said the company has not yet decided whether to pursue its case against Belcher Oil. The NYMEX, meanwhile, has a counterclaim pending against Apex Oil, seeking an unspecified amount of attorney's fees and 15 mln dlrs in punitive damages, according to a NYMEX spokeswoman. Reuter 19-JUN-1987 11:35:34.69 F f1287 reute b f BC-TRIBUNE-CO-TO-I 06-19 0011 ****** 19-JUN-1987 11:35:45.23 canada E F f1289 reute r f BC-CANADA-POST-WORKERS-R 06-19 0104 OTTAWA, June 19 - Canadian letter carriers today rejected a new contract offer from Canada Post as the strike spread to Toronto where half the nation's mail is sorted. The Letter Carriers Union said the new offer presented June 18 contained the same demands for concessions the union had already refused. The union members walked out in other Ontario cities today but returned to work in Atlantic Canada, parts of Quebec, Edmonton, and Victoria. Negotiators were scheduled to resume bargaining today but were not expected to reach an agreement to end the four-day-old strike. Reuter 19-JUN-1987 11:37:15.14 spain RM f1296 reute r f BC-SPANISH-PRIVATE-BANK 06-19 0099 MADRID, June 19 - Most private banks in central Madrid and Barcelona closed as Spanish bank staff went on strike for more pay, union officials and employers said. Union officials said there was at least partial response to the strike call in the rest of Spain. But a spokesman for the employers' Banks Association said banks in many towns were working almost normally. Unions called the strike today and tomorrow morning to press for shorter working hours and an eight pct pay increase. Employers offered a 4.75 pct wage increase last month. REUTER 19-JUN-1987 11:37:21.25 usa F f1297 reute d f BC-AMERICAN-FEDERAL-SAVI 06-19 0089 DENVER, June 19 - American Federal Savings and Loans Association of Colorado said its earnings will continue to be under pressure this year due to the weakness of the Colorado economy. The company, which today declared a regular quarterly dividend, said it was also under pressure from the level of non-earning assets it holds. The company said this pressure will be offset to a certain extent by increased revenues from out-of-state operations and its strong capital position. Reuter 19-JUN-1987 11:37:51.17 usa F f1298 reute r f BC-DAXOR-<DAXR.O>-IN-FED 06-19 0059 NEW YORK, June 19 - Daxor Corp said it has received an offer from Federal Express Corp to establish a national frozen blood bank at Federal's Memphis, Tenn., headquarters. The company said its blood could be shipped anywhere in the U.S. within six hours from Memphis via Federal Express' delivery system. Reuter 19-JUN-1987 11:39:23.52 money-fxinterest RM V f1304 reute f f BC-FED-SETS-SIX-DA 06-19 0008 ****** 19-JUN-1987 11:40:07.55 usa F f1306 reute r f BC-CANON-<CANNY.O>-OPENS 06-19 0067 NEWPORT NEWS, Va., June 19 - Canon Inc of Japan said Canon of Virginia Inc has opened a 26 mln dlr 289,000 square foot plant in Newport News, Va. The company said the plant will initially make 700 to 1,000 Canon dual-color copiers a month, and other business equipment lines including laser beam printers and electronic typewriters may be phased in later. Reuter 19-JUN-1987 11:41:05.69 usa F RM f1313 reute r f BC-DIGICON-<DGC>-STARTS 06-19 0114 HOUSTON, June 19 - Digicon Inc said it started an offer to exchange a package of new securities for all 55,019,000 dlrs of its outstanding subordinated debentures. The exchange includes its 12-7/8 pct senior subordinated notes, 10-1/2 pct convertible subordinated debentures and the 8-1/2 pct convertible subordinated debentures of Digicon Finance N.V. It said the new securities to be issued in exchange offers include up to 8,574,000 dlrs of Digicon's 12 pct senior subordinated notes due 1994, up to 23,580,000 dlrs of Digicon 9.35 pct convertible subordinated debentures due 1997 and up to 16,506,000 shares of Digicon common. Digicon said in addition to the new notes, new debentures and common stock, it also will issue to exchangeing holders up to 22,865,000 dlrs of contingently extinguishable debt certificates. It said the exchange offers are being made only by prospectus. Reuter 19-JUN-1987 11:41:44.04 usa F f1319 reute u f BC-GTE-(GTE)-DEVELOPS-NE 06-19 0127 WALTHAM, Mass., June 19 - GTE Corp scientists said they have discoverd a much simpler method for producing transistors by creating an entirely new electronic material. The new method, they said, consists of simultaneously "growing" metal connections and silicon crystals together to form one, three dimensional device with connections penetrating the entire device. Conventional transistors require many steps to make and have connections only on the surface. GTE Laboratories created "an entirely new electronic material and device form, which may open up a spectrum of uses that cannot even be imagined at this time," said David Decker, vice president and director of research for GTE Laboratories. "Although still early in our research, we are obviously excited that we have found a significantly simpler and, we believe, cheaper way to produce an electronic device," he said. Researchers at GTE created the new transistor by combining and heating silicon and a conductive metal, tantalum disilicide, so that the two grow together. The resulting device has microscopic metal rods extending througout the chips, creating a three dimensional transistor that should be superior to standard devics in high power applications, the scientists said. They said that, because the connections extend vertically througout the new device, it has a much greater volume of active material than conventional surface-mounted connections. Decker said the scientists are still in the early stages of their research on the device, but prototypes of the new device compare favorably with conventionaly made transistors and show promise of superior performance. He said the prototype device also proved to be particularly efficient in detecting light, which could open up new possibilities in solar energy conversion, the development of electronic cameras and greater efficiency in optical communication systems. REUTER 19-JUN-1987 11:41:48.90 usa F f1320 reute r f BC-DAXOR-<DAXR.O>-IN-FED 06-19 0060 NEW YORK, June 19 - Daxor Corp said it has received an offer from Federal Express Corp to establish a national frozen blood bank at Federal's Memphis, Tenn., Headquarters. The company said its blood could be shipped anywhere in the U.S. Within six hours from Memphis via Federal Express' delivery system. REUTER 19-JUN-1987 11:41:56.04 usa F f1321 reute r f BC-SMITHKLINE-<SKB>-SAYS 06-19 0079 IRVINE, Calif., June 19 - Allergan Inc, a subsidiary of Smithkline Beckman Corp, said the U.S. District Court in New York has ordered Bausch and Lomb Inc to immediately recall from retail shelves all soft contact lens solutions sold under the "HYPO-CARE" name and cease any further distribution. The company said the court found that HYPO-CARE was too close to Allergan's trademark "HYDROCARE" to prevent public confusion. Reuter 19-JUN-1987 11:44:05.99 usa F f1330 reute s f BC-ARTHUR-D.-LITTLE-INC 06-19 0025 ARTHUR D. LITTLE INC <LTLE.O> DIVIDEND CAMBRIDGE, Mass., June 19 Qtly div 17.5 cts vs 17.5 cts in prior qtr Payable July 15 Record June 30 Reuter 19-JUN-1987 11:46:31.71 usa F f1342 reute r f BC-THE-HYDRAULIC-CO-<THC 06-19 0056 BRIDGEPORT, Conn., June 19 - The Hydraulic Co said it filed for a proposed public offering of 500,000 shares of common stock through an underwriting group co-managed by Salomon Brothers Inc and Edward D. Jones and Co. The company said proceeds will be used to repay certain short-term debt. Reuter 19-JUN-1987 11:50:33.57 money-fxinterest V RM f1350 reute b f BC-/-FED-SETS-SIX-DAY-SY 06-19 0079 NEW YORK, June 19 - The Federal Reserve entered the government securities market to arrange six-day repurchase agreements for system account, a spokeswoman for the New York Fed said. Fed funds were trading at 6-3/4 pct at the time of the direct injection of temporary reserves, dealers said. Economists had expected three- or six-day repurchases because the Fed needs to add a large volume of reserves this statement period. Reuter 19-JUN-1987 11:55:44.34 ship netherlandswest-germany C G T M f1365 reute r f BC-RHINE-BLOCKED-FOR-THR 06-19 0096 ROTTERDAM, June 19 - Dutch salvage firm Smit-Tak said it may take some three weeks to lift the Swiss tug Orinoko and its lighter Pavo which sank 10 days ago at Karlsruhe in West Germany, blocking the Rhine river. Smit-Tak, which with its West German subsidiary Harms Bergung GmbH was commissioned by the local water authorities to raise the vessels, said its lifting fleet was in position and divers had made the first inspection. Smit is still preparing its final salvage plan and said the work would begin on Sunday. Reuter 19-JUN-1987 11:58:32.47 usa F RM f1370 reute u f BC-TRIBUNE-<TRB>-TO-ISSU 06-19 0078 CHICAGO, June 19 - Tribune Co said it will offer up to 100 mln dlrs of medium-term notes. The notes will be offered on a continuing basis through Salomon Brothers Inc and Merrill Lynch Capital Markets. The notes may have maturities of nine months to 15 years. Specific terms of each transaction will be established at the time of sale, the company said. Proceeds will be used for general corporate purposes. Reuter 19-JUN-1987 11:59:36.76 acq F f1374 reute f f BC-STIFEL-FINANCIA 06-19 0011 ****** 19-JUN-1987 12:01:08.82 acq usa F f1383 reute u f BC-HARCOURT-<HBJ>-MUM-ON 06-19 0107 NEW YORK, June 19 - Harcourt Brace Jovanovich Inc officials were not available for comment on market rumors that it is interested in acquiring Reed International plc <REED.L>. Officials of First Boston Inc, Harcourt's financial adviser, declined comment. A Wall Street arbitrageur, who owns Harcourt shares, said the rumors did not make much sense because Harcourt has announced a recapitalization plan to ward off a takeover attempt by British publisher Robert Maxwell."It's completely inconsistent with the recapitalization, the only way is if they drop the recapitalization," he said. Calls to Harcourt seeking comment were not returned. Harcourt's recapitalization will come under scrutiny of a U.S. Court in Orlando, Fla. Monday. The company has sought a declaratory judgment on convertibility of debentures due 2011 in light of the recapitalization. Harcourt said in a statement this week that Salomon Brothers Inc <SB> and Mutual Shares Corp have intervened in the case, claiming ownership of more than 30 mln dlrs face amount of the debenture. In addition, British Printing and Communications Corp, headed by Maxwell, owns 9.5 mln dlrs face amount, Harcourt said. Salomon said in a filing with the Securities and Exchange Commission today that it has 21,978 of the debentures. If the court decides they should be converted at par value of one dlr, they could be converted into 22.0 mln shares. Harcourt is asking the court to rule the company is not required to issue common to debenture holders who did not convert prior to June eight. An increase in Reed shares in London today was attributed by brokers to rumors of Harcourt's interest and also to rumors that Maxwell might be a buyer. But an adviser to Maxwell in New York said "there's no basis to think that it's us." Reuter 19-JUN-1987 12:04:21.19 usa F f1408 reute b f BC-HARCOURT 06-19 0106 WASHINGTON, June 19 - Salomon Brothers Inc said it has acquired 21,978 convertible subordinated debentures of Harcourt Brace Jovanovich Inc, which it says could be converted into 21,978,000 common shares. In a filing with the Securities and Exchange Commission, the New York brokerage firm said it bought the debentures, which have a face value of 1,000 dlrs each, in May and June as a regular part of its investment and arbitrage activities. The conversion rights of the debentures are the subject of a Florida court case, in which Salomon Brothers said it has also intervened. Salomon Brothers said it rejects Hartcourt's position that the debentures are not convertible into stock as of June 9. It said it would leave open a range of options regarding the debentures, including buying more, selling some or all of their current stake in the market or in negotiated deals, talking with other Harcourt security holders, surrendering the debentures if there were a merger or tender offer or converting them into stock. Salomon said it would have a 35.8 pct stake in Harcourt, based on 39.4 mln shares outstanding, if it converted the debentures into 21,978,000 common shares. The percentage is based on the current outstanding plus the amount of stock that would be issued in a conversion. But Salomon said its stake in Harcourt's common stock would be lower if other debentureholders converted their securities into stock. It says it has no idea of the total number of debentures outstanding. Harcourt has said that Salomon and Mutual Shares Corp, a New York investment firm, hold a combined total of 30 mln dlrs of debentures. Harcourt announced a recapitalization plan last month to ward off a takeover attempt by British publisher Robert Maxwell. Reuter 19-JUN-1987 12:04:32.34 usa F f1410 reute r f BC-GEN-DYNAMICS-<GD>-IN 06-19 0110 ST LOUIS, Mo., June 19 - General Dynamics Corp said it formed an international consortium to compete for the contract relating to the multinational air to ground missile known as the modular standoff weapon. The modular standoff program is an agreement between the U.S., West Germany, United Kingdom, France, Italy, Canada and Spain, to develop three versions of the air-to-ground system. The company said the consortium includes Brunswick Corp <BC>, Dornier GMBH <DOGG.F> of West Germany, Hunting Engineering Co Ltd of the U.K., Aerospatiale of France, Agusta of Italy, Garrett of Canada, and Inisel of Spain. Reuter 19-JUN-1987 12:04:34.36 RM f1411 reute f f BC-LLOYDS-BANK-SAYS-IT-W 06-19 0013 ****** 19-JUN-1987 12:09:34.05 south-africa RM f1442 reute u f BC-S.-AFRICA-CITICORP-ST 06-19 0110 JOHANNESBURG, June 19 - South African staff of the U.S. Bank Citicorp <CCI> said they will challenge its plans to sell local operations and withdraw from the country. Employees said they had written to Citicorp chief executive John Reed protesting against the way the disinvestment deal has been handled. They said that they were not consulted on the sale of Citicorp's local subsidiary, Citibank N.A. Ltd, to South Africa's First National Bank <BCLJ.J>. The letter, signed by most of the bank's 175 staff, hints at legal action against Citicorp unless it reviews the disinvestment arrangement. "We are seriously considering legal action," a senior Citibank employee told Reuters. "There has been no consultation with South African staff and that runs contrary to American corporate thinking in this country," he added. Citicorp announced the 130 mln rand cash sale on Tuesday with an effective date of July 1. First National Bank's managing director, Chris Ball, said his bank was essentially buying the skills of Citibank's specialist employees and disclosed that the American bank's assets in South Africa totalled only 15 mln rand. Ball indicated that the bank's staff had been told of the sale and agreed to stay on in the bank's employ. Citibank's staff, 40 pct of whom are black, have complained that the disinvestment accord bars local employees from jobs with Citicorp anywhere in the world for five years. They say that this provision amounts to a restraint clause which is legally challengeable. This could threaten the divestment plan, say industry sources, since most of the purchase price, as Ball said, is for employee skills and expertise and not assets. The Citibank employee challenge is seen as more important than a previous, ultimately unsuccessful, challenge on job security issues by General Motors employees after the U.S. Automaker announced its pull out, because valuable managers and other key staff are involved in protest. The employees assert that the Citicorp sale, unlike similar disinvestment moves announced this week by <Ford Motor Co> and <ITT Corp>, include no portion of South African profits for local employees or black community projects. "We always thought they would offer a settlement to staff here in keeping with their image as an equal opportunity employer," said a senior black employee, adding "We had no idea that the age of slavery was still alive." REUTER 19-JUN-1987 12:09:56.75 usaindia RM f1444 reute d f BC-WORLD-BANK-LOANS-INDI 06-19 0106 WASHINGTON, June 19 - The World Bank said it has extended three loans to India totalling 929 mln dlrs, for two projects in the power sector, and one for water supply and sewage. One power project will be supported by a 485 mln dlr loan, the bank said. The other power project, supported by a 375 mln dlr loan, plans to aid in the first phase of a power generation complex in eastern India, the bank said. The third project, which is being supported by a bank loan of 53 mln dlrs and an International Development Association loan of 16 mln dlrs, hopes to increase water supply to Madras. Reuter 19-JUN-1987 12:12:43.39 uk RM f1461 reute b f BC-LLOYDS-PULLS-OUT-OF-E 06-19 0065 LONDON, June 19 - Lloyds Bank Plc said it is withdrawing from market making in Eurobonds and U.K. Government bonds (gilts). It said in a statement it will maintain an active presence in short-term securities trading, swaps and other treasury products, building on its strengths in traditional foreign exchange and money markets. In the statement, Lloyds chief executive Brian Pitman said "We have a relatively small position in these two overcrowded markets and we have decided to reallocate the resources to opportunities which promise a better return on our shareholders' investment." With this decision, Lloyds becomes the second major U.K. Clearing bank to feel the effects of the deregulation of the London Stock Exchange, or "Big Bang," last October. Earlier this year, Midland Bank Plc pulled out of equity market making because it did not believe the return justified the costs involved in maintaining and developing a market share. Lloyds Treasurer Alan Moore subsequently told Reuters that the decision was taken at a board meeting earlier today and had been under discussion for some time. He said the move was not a reaction to any losses sustained in the trading of Eurobonds or gilts but rather a result of a "strategic review" of the future of Lloyds involvement in these markets. In the end, Lloyds decided these markets did not represent "an attractive return to our shareholders," he said. He noted that Lloyds had not expected its U.K. Government bond operations would be profitable in the early stages, although he declined to discuss the finances of the operation. "This is an overcrowed market," Moore said of the U.K. Government bond market, which began Big Bang with 27 market makers. Lloyds withdrawal now leaves the number at 26. Market participants noted that Lloyds was the only one of the clearing banks which did not buy a jobber (middle man) or broker before Big Bang. Under the old system, the gilt market operated under a separate system which involved separate functions for jobbers and brokers. Now these tasks have been taken up by market makers acting as both. Moore said that one reason Lloyds decided to withdraw from these markets was that they could no longer justify the commitment of capital that was required to maintain these operations. He said Lloyds would make every effort to redeploy employees in these areas within the bank. REUTER 19-JUN-1987 12:15:17.70 usa F f1471 reute u f BC-VIACOM-<VIA>-SETS-EX- 06-19 0049 NEW YORK - Viacom Inc said the ex-dividend date for its preferred stock is Friday, June 19. The company, which halted activity on the stock this morning, said trading will resume shortly. The last price for Viacom Inc preferred was 24-1/2. Reuter 19-JUN-1987 12:16:27.05 usa F f1475 reute r f BC-FORD-<F>-HAS-12-PCT-M 06-19 0069 DETROIT, June 19 - Ford Motor Co said that through May its European dealers Europe sold a record 643,000 cars and increased their market share to 12 pct from 11.7 pct a year earlier. The company said industry sales ran at a seasonally adjusted annual rate of 11.6 mln cars during the first five months of 1987 compared with 10.9 mln cars in the same period last year. Reuter 19-JUN-1987 12:18:49.82 usa C G L f1483 reute u f BC-USDA-ENDS-SCREWWORM-C 06-19 0081 WASHINGTON, June 19 - The U.S. Agriculture Department has ended its screwworm alert control program in Albuquerque, New Mexico, because the potential of a screwworm outbreak in the area has been contained. The department said the program was set up after a case of screwworms was confirmed in a hunting dog being returned from Venezuela. It said six weeks of surveillance has failed to turn up an additional cases of screrwworms. Reuter 19-JUN-1987 12:21:40.83 usa A RM f1499 reute r f BC-FIRST-WISCONSIN-<FWB> 06-19 0087 NEW YORK, June 19 - Moody's Investors Service Inc said it affirmed First Wisconsin Corp's 50 mln dlrs of debt. Affirmed were the firm's Baa-1 senior debt and Baa-2 preferred stock. Moody's noted that First Wisconsin said it would add a special loan loss provision of 96 mln dlrs to reflect exposure to economically troubled international borrowers. The provision adjusts the firm's financial statement to more accurately reflect economic reality, the agency said. Reuter 19-JUN-1987 12:22:11.41 usa A RM f1503 reute r f BC-GREAT-WESTERN-<GWF>-U 06-19 0100 NEW YORK, June 19 - Great Western Bank, a unit of Great Western Financial Corp, is offering 200 mln dlrs of notes due 1997 yielding 9.60 pct, said lead manager Merrill Lynch Capital Markets. The notes have a 9-1/2 pct coupon and were priced 99.365 to yield 130 basis points more than comparable Treasury securities. Non-callable to maturity, the issue is rated A-2 by Moody's and A by Standard and Poor's. The gross spread is 6.50 dlrs, the selling concession is four dlrs and the reallowance is 2.50 dlrs. Shearson Lehman co-managed the deal. Reuter 19-JUN-1987 12:23:34.60 netherlands F f1505 reute r f BC-PHILIPS-SEES-BOOM-IN 06-19 0093 EINDHOVEN, June 19 - The market for advanced visual displays will grow seven-fold into a five billion dlr business in five years, NV Philips Gloeilampenfabrieken <PGLO.AS> said. Philips is Europe's largest supplier of liquid crystal displays (LCDs) currently used in lighter and more efficient televisions and screens. Last year, the market was worth 683 mln dlrs. But Philips sees a surge in demand with applications in monitors, test and measuring equipment, cars and telecommunications equipment. Philips said the overall market value will have risen to five billion dlrs by 1992. It has so far used LCDs only in industrial applications, but said in a statement it was moving to get a big share of a growing consumer products market. Pocket-sized LCDS are already produced and marketed by Japanese manufacturers and sell at around 100 to 200 dlrs, Philips spokesman Jack Reemers said. Philips hopes to launch its version later this year. Reuter 19-JUN-1987 12:23:53.27 earn usa F f1506 reute u f BC-NEW-ENGLAND-ELECTRIC 06-19 0062 WESTBOROUGH, Mass., June 19 -Five mths end may 31 Shr 1.37 dlrs vs 1.38 dlrs Net 75.2 mln vs 73.6 mln Revs 632.3 mln vs 629.6 mln Avg shrs 54.9 mln vs 53.4 mln 12 mths Shr 3.19 dlrs vs 3.13 dlrs Net 173.6 mln vs 165.1 mln Revs 1.43 billion vs 1.47 billion Avg shrs 54.4 mln vs 52.8 mln Reuter 19-JUN-1987 12:24:32.58 acq usa F f1510 reute r f BC-MINNESOTA-MAY-CONSIDE 06-19 0122 NEW YORK, June 19 - Minnesota Governor Rudy Perpich is considering calling a special legislative session to consider amendments to the state's anti-takeover statute, according to the governor's office. A spokesman for the governor said nothing will be decided today, but said the governor will evaluate later whether to call a special session in the next few days. The governor's office said the possible action was triggered by a proposal by Dayton-Hudson Corp <DH>, which has been the subject of takeover rumors. A spokesman for the governor said the company proposed several amendments to Perpich designed to make any takeover attempt in the state more difficult. Dayton-Hudson suggested amendments be passed and instituted by next Friday, the spokesperson said. Press reports in Minneapolis newspapers this morning quoted several legislators as saying they were inclined to support legislation that would help Dayton-Hudson, according to a governor's spokesperson. Senate Majority Leader Roger Moe was quoted as saying he would be inclined to support any action that would help the company, the spokesperson said. Robert Vanasek, the House speaker designate, was quoted in the Minneapolis Star and Tribune as saying, "We are taking their (Dayton-Hudson) concerns very seriously and we are going to do what we can to help." Reuter 19-JUN-1987 12:25:10.55 acq usa F f1516 reute r f BC-BOEING-<BA>-MERGER-WA 06-19 0055 SEATTLE, June 19 - Boeing Co said the Hart-Scott-Rodino waiting period required in connection with its pending tender offer for ArgoSystems Inc <ARGI.O> expired at midnight June 18. Boeing began its 37 dlr per share cash tender offer for the defense electronics firm on June two. Reuter 19-JUN-1987 12:26:07.83 F RM f1523 reute f f BC-MOODY'S-MAY-UPG 06-19 0011 ****** 19-JUN-1987 12:31:14.92 acq usa F f1546 reute d f BC-MEGAVEST-TO-ACQUIRE-C 06-19 0061 NEW YORK, June 19 - <MegaVest Industries Inc> said it has agreed in principle to acquire unlisted Computer Trade Development Corp in exchange for 119 mln shares of its common stock. The company said it has about 21.5 mln shares outstanding. It said Computer Trade had revenues of about 6.1 mln dlrs last year. Reuter 19-JUN-1987 12:32:22.31 usa F f1553 reute u f BC-MAY-DEPT-STORES-<MA> 06-19 0081 ST LOUIS, June 19 - May Department Stores Co said it expects record profits and sales in the fiscal 1988 and also set a five-year 3.3 billion dlr capital expenditure plan. "Our sights are set on achieving our 13th consecutive year of record sales and earnings," chairman David Farrell told the annual meeting. In the year ended January 31, 1987, the company earned 381 mln dlrs or 2.44 dlrs a share on sales of 10.3 billion dlrs. Farrell also said he expects improved second-quarter profits. "We believe second-quarter performance should show improvement over 1986," he said. In the quarter ended August 30, 1986, the company earned 45.6 mln dlrs or 52 cts on sales of 1.23 billion dlrs. The five-year capital expenditure program includes 1.9 billion dlrs to open a record 73 department stores, 52 discount stores and about 1,200 specialty stores. About two-thirds of the department stores will be opened by Lord and Taylor, May Co, and J.W. Robinson's in California, Hecht's in Washington, D.C., and G. Fox in Connecticut. The remainder of the 3.3 billion dlrs will be used for store relocations, closings and remodelings, Farrell said. Sales per square foot rose eight pct in 1986 to 134 dlrs, president Thomas Hays said, noting that the company seeks annual increases of 10 pct. Also at the annual meeting, shareholders voted to approve indemnification of the company's officers and directors. Reuter 19-JUN-1987 12:32:55.57 usa F f1556 reute r f BC-GEMCRAFT-<GEMH.O>-SEE 06-19 0082 HOUSTON, June 19 - Gemcraft Inc said it expects to post a profitable second quarter. Gemcraft recorded net income of 908,000 dlrs, or 16 cts per shr, for the second quarter ended June 30, 1986. In addition, the company said at its annual shareholders meeting that it will repurchase approximately 130,000 shares of its common stock, a decrease from its earlier plan to purchase as many as 330,000 shares for a total price of three mn dlrs. Reuter 19-JUN-1987 12:34:51.79 usa A RM f1568 reute u f BC-SCI-HOLDINGS-MAY-BE-U 06-19 0107 NEW YORK, June 19 - Moody's Investors Service Inc said it may upgrade the ratings on 1.45 billion dlrs of debt of SCI Holdings Inc. The agency cited SCI's announcement that it agreed to sell for 1.3 billion dlrs six television stations and related properties to a joint venture formed by SCI and Gillett Holdings Inc. While financing details are not available, the agency said SCI's debt should decline as a result of the sale. BCI currently carries Ba-3 zero coupon senior notes and B-2 senior subordinated debentures. The BCI unit Storer Communications Inc has B-2 subordinated debentures. Reuter 19-JUN-1987 12:35:54.08 sugar west-germanyussrswedendenmarkukfrancebelgiumnetherlandsaustriaczechoslovakiapolandspain C T f1570 reute u f BC-COLD,-WET-WEATHER-SLO 06-19 0094 RATZEBURG, June 19 - Cold and wet weather in northern, western and central parts of Europe continued to slow beet growth but plant density is reported to be good in most countries, sugar statistician F.O. Licht said. Temperatures were too low for the season and the rain has hampered field work and occasionally led to water-logged fields. But in eastern and southeastern Europe, warmer weather has boosted sugar beet growth. Weather in the Soviet Union also allowed good beet development, Licht said. In Sweden beet growth has been delayed, although plant population is reported to be regular and good. Cool and rainy weather slowed beet growth in Denmark and crop prospects are rated as slightly below normal. In the United Kingdom and Ireland, it was rather cool with heavy rainfall in places which has delayed beet growth. In France, Belgium, the Netherlands, and West Germany, it was mostly cool with frequent and often heavy rainfall which continued to slow down beet growth and often made field work impossible. In Austria, it was warm with some rainfall, which was favourable for beet growth, Licht said. In Czechoslovakia and Poland, it was mostly warm, favouring beet development. but some heavy rain may have caused damage. In the European beet growing regions of the Soviet Union, it was warm with showers over most areas and weather was generally good for the emergence and growth of beets. In south eastern Europe, warm weather with some rainfall boosted beet development. Labour trouble threatens the beet crop in Spain. Disputes between the factories and the trade unions are threatening to delay the start of processing in the southern areas, where beets are maturing very early this year. Reuter 19-JUN-1987 12:36:11.54 acq usa F f1572 reute u f BC-FIRST-<FBT>-REITERATE 06-19 0100 HOUSTON, June 19 - First City Bancorp of Texas Inc, which is soliciting bidders, reiterated that it is premature to speculate on what course of action it will pursue following a story in today's Wall Street Journal that it has attracted at least three potential acquirers. First City said the article was not confirmed by the company, and it cautioned that there is "absotluely nothing to say or report beyond" its statement. The Journal reported that among the bidders for First city was Robert Carney and Robert Abboud, a former Chicago banker. Reuter 19-JUN-1987 12:37:52.68 usa F RM A f1583 reute u f BC-BANKAMERICA-<BAC>-TO 06-19 0099 SAN FRANCISCO, June 19 - BankAmerica Corp's Bank of America unit said it will offer 300 mln dlrs in certificates representing interests in a pool of receivables selected from its California Classic Visa credit card accounts. The certificate rate is 8.2 pct. The offering price to the public is 99.89 dlrs, resulting in a yield to certificate holdes of 8.21 pct. The certificates have a provisional rating of Aaa by Moody's Investors Service and are backed by a 30-mln-dlr lettter of credit by Bayerische Vereinsbank AG, BankAmerica said. The offering will be co-managed by Salomon Brothers Inc and the bank. "Selling these loans provides a cost-effective source of medium-term funds and allows the bank to leverage its existing capital base across a broad range of activities," said Vice Chairman and Chief Financial Officer Frank Newman. Bank of America said it will continue to service the loans and maintain customer relationships, while the proceeds of the offering can be used to fund new loans. BankAmerica said it pioneered securitization in 1977 with home loans sold as mortgage pass-through certificates. Reuter 19-JUN-1987 12:38:20.35 usa A RM f1587 reute r f BC-TRIBUNE-CO-<TRB>-TO-S 06-19 0073 NEW YORK, June 19 - Tribune Co said it is offering up to 100 mln dlrs of medium-term notes. The notes will have maturities from nine months to 15 years, the company said. The terms of each deal will be set at the time of sale. They will be offered on a continuing basis through Salomon Brothers and Merrill Lynch, the firm added. Proceeds will be used for general corporate purposes. Reuter 19-JUN-1987 12:41:54.91 franceugandamozambique RM f1608 reute r f BC-UGANDA,-MOZAMBIQUE-WI 06-19 0114 PARIS, June 19 - The Paris Club of creditor nations agreed to a major rescheduling of Uganda's and Mozambique's government-to-government debts, the Club said in a statement. At meetings here this week, both countries were accorded terms that were more generous than usually granted by the Club. Uganda was given 15 years to repay its debts with a six-year grace period while Mozambique was accorded an exceptionally long 20-year period, with 10 years' grace. The Club said it approved of both countries' economic and financial programs and would therefore make a contribution to improve their external payments prospects. It said both countries faced heavy debt service obligations and low per capita income, adding the solution of the countries' debt problems would take a number of years. The statement also said Mozambique's limited debt service capacity made borrowing from the International Monetary Fund in the upper credit tranches "inappropriate." No details were available from the countries' embassies nor from the Club on the amounts involved, but last week the Ugandan Finance Minister Chrispus Kiyonga said he was hoping for a rescheduling of 120 mln dlrs. Uganda's total foreign debt is estimated at some 1.5 billion dlrs. A French Finance Ministry statement issued the same time as the Paris Club statement, said France had formally agreed with Gabon to reschedule bilateral unpaid debt amounting to about 440 mln francs. The bilateral agreement, covering payments due to have been made by May 31 this year, follows the Paris Club's January decision to grant Gabon an extended repayment period for its government-to-government debt. The ministry said French aid to Gabon in 1987, within the framework of the country's economic recovery program, amounts to about 1.67 billion francs. REUTER 19-JUN-1987 12:41:59.55 earn usa F f1609 reute h f BC-CHANCELLOR-CORP-<CHCR 06-19 0055 BOSTON, June 19 - Shr loss 20 cts vs loss three cts Net loss 346,000 dlrs vs loss 26,000 dlrs Revs 7,671,000 dlrs vs 4,775,000 dlrs 12 mths Shr profit one dlr vs profit 2.19 dlrs Net profit 2,927,000 dlrs vs profit 5,613,000 dlrs Revs 40.9 mln vs 35.8 mln Reuter 19-JUN-1987 12:42:45.35 usa F f1613 reute u f BC-JEWELMASTERS-<JEM>-IN 06-19 0109 WEST PALM BEACH, Fla., June 19 - Jewelmasters Inc said it signed a licensing agreement with Walt Disney Co to make and market gold jewelry featuring such Disney characters as Mickey Mouse, Minnie Mouse, Donald Duck, Pluto and Goofy. Terms were not disclosed. The company said the "Disney in Gold" merchandise, including necklaces, earrings and rings in 14 carat and 18 carat gold, will cost anywhere from 200 dlrs to 10,000 dlrs. It said sales are expected to begin in the fall, and the initial license agreement begins in June and continues through September 1988 with "multiple renewal options." Reuter 19-JUN-1987 12:46:21.73 livestockcarcass usaaustralia C L f1625 reute b f BC-U.S.-REFUSES-PARTS-OF 06-19 0115 WASHINGTON, June 19 - U.S. Agriculture Department inspectors have refused entry to parts of two lots of Australian beef because of pesticide residues, a spokeswoman for the department said. She said USDA has notified Australia, which assured it that stricter controls would be implemented. The Australian government had already imposed residue controls and it is believed the meat with the presticide residues was already in the pipeline before the controls were put in place, the spokeswoman said. There have been five other cases of Australian meat which had residue levels above U.S. allowable limits this year, she said. Reuter 19-JUN-1987 12:54:16.63 acq usa F Y f1647 reute u f BC-UNC 06-19 0101 WASHINGTON, June 19 - Chevron Corp said it sold 4.6 mln shares of UNC Inc common stock on June 15, leaving it with 1.4 mln UNC common shares, or 8.4 pct of the total. In a filing with the Securities and Exchange Commission, Chevron said it sold the shares for 11.88 dlrs each, or a total of 54.6 mln dlrs, under an agreement it had with UNC. The stock was sold to an underwriting syndicate managed by Dillon, Read and Co Inc and Donaldson, Lufkin and Jenrette Securities Corp, with the underwriters paying 38.3 mln dlrs and UNC paying 16.4 mln, it said. Reuter 19-JUN-1987 12:55:45.30 acqnat-gas usa F f1651 reute u f BC-N-D-RESOURCES-<NUDY.O 06-19 0063 CASTLE ROCK, COLO., June 19 - N-D Resources Inc said it agreed in principle to issue an undetermined number of shares to Recovery Resources Corp, Bahrain, in order to acquire Recovery's Atoka Gas Gathering Systems Inc. Atoka currently operates a 20-mile natural gas pipeline of 46 miles in length in southeastern Oklahoma. Reuter 19-JUN-1987 12:56:06.85 acq usa F f1654 reute r f BC-SAFEWAY-AGREES-TO-SEV 06-19 0095 WASHINGTON, June 19 - The United Food and Commercial Workers Union said unlisted Safeway Inc has agreed to provide severance pay to about 5,000 workers in the Dallas area resulting from the closure of a division last April. The union said the total severance payment will be about five mln dlrs. It said the division was closed as a result of 4.6 billion dlrs in debt incurred from a leveraged buyout last year. The union said it filed suit following the leveraged buyout to protect the claims of union members. The leveraged buyout was implemented to ward off a bid by Dart Group Corp <DARTA.O>. Reuter 19-JUN-1987 12:58:08.25 trade ethiopialesothodjiboutikenyamalawimauritiusrwandasomaliaswazilandtanzaniaugandazambiazimbabwe M T C G f1660 reute r f BC-AFRICAN-STATES-AGREE 06-19 0098 ADDIS ABABA, June 19 - Fifteen countries in Eastern and Southern Africa have agreed to cut tariffs on regional trade by 10 pct every two years up to 1996. A statement by the Preferential Trade Area (PTA), which seeks to create a common market stretching from Ethiopia in the north to Lesotho in the south, said the governments would make the first tariff cut next year. In 1996 they would assess the impact of the tariff reductions and work out a new timetable for the complete elimination of all barriers to trade by the year 2000. The PTA, set up in 1982, groups Burnudi, the Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Rwanda, Somalia, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. PTA sources said the agreement averted a split between members wanting more progress towards free trade and weaker states concerned about the effects on customs revenue. The reductions cover only a common list of 300 or so widely traded commodities and goods but PTA sources said the organisation planned to expand the list to include 425 items. Reuter 19-JUN-1987 12:59:33.45 jamaicausa RM f1666 reute r f BC-WORLD-BANK-TO-LOAN-JA 06-19 0102 WASHINGTON, June 19 - The World Bank said it approved four loans to Jamaica totalling 104 mln dlrs to assist that country with an economic structural adjustment program, a sugar industry rehabilitation scheme and a population and health project. The bank said two loans will support Jamaica's structural adjustment program -- a 40 mln dlr loan for trade and financial sector adjustment and a 20 mln dlr loan for the public enterprise sector. The 40 mln dlr loan is designed to raise the performance of exports and industry and strengthen the financial sector. Reuter 19-JUN-1987 13:00:31.06 grainwheatoatbarley canada C G f1669 reute u f BC-SASKATCHEWAN-CROPS-DE 06-19 0121 REGINA, June 19 - Hot, dry weather has caused some deterioration in Saskatchewan crops, according to the Saskatchewan Wheat Pool's weekly crop report. Rain was needed in the southwest, west-central and northeast regions, and other regions were expected to need rain soon. Summerfallow crops were in fair to good condition, while stubble crops were rated fair to poor. Wheat, durum, oats and barley crops were all one-pct headed, rye was 40 pct in the milk stage and winter wheat was 21 pct milk stage. Flax was 51 pct tillering, and canola was 58 pct tillering. Areas of the southern grain belt were hit by high winds and hail Tuesday, with some damage reported. Reuter 19-JUN-1987 13:01:22.47 usa F A RM f1674 reute r f BC-FULL-INTERSTATE-BANKI 06-19 0092 CHICAGO, June 19 - Illinois Governor James Thompson will likely sign a bill setting December 1, 1990, as the trigger date opening the state to wider interstate banking, a gubernatorial spokesman said. The bill passed both chambers of the Illinois legislature this week by wide margins. The bill provides that Illinois banks and bank holding companies can be acquired by similar institutions from any state with a reciprocal law. Current Illinois law limits interstate banking to six Midwestern states. The governor had supported a July 1, 1988, date for full interstate banking. Large banking firms, particularly Citicorp <CCI>, have lobbied for the earlier date. But legislation with the later date was approved in the state's house and senate. The governor has the authority to use an amendatory veto and pencil in an earlier trigger date. "I'm sure the bill will get his approval," the spokesman said. "The only question is whether he will use his authority to change the trigger date. He will hear from people who want the different dates. I don't think he'll take action before late summer." Reuter 19-JUN-1987 13:01:42.16 oilseedrapeseed canadajapan C G f1676 reute u f BC-JAPAN-BUYS-8,000-TONN 06-19 0040 WINNIPEG, June 19 - Japanese crushers bought 8,000 tonnes of Canadian rapeseed for shipment from the last-half of July to September, trade sources said. Price details were not available. Reuter 19-JUN-1987 13:05:20.94 jamaicausa T f1703 reute d f BC-WORLD-BANK-TO-LOAN-JA 06-19 0125 WASHINGTON, June 19 - The World Bank said it approved loans to Jamaica totalling 104 mln dlrs to assist it with an economic structural adjustment program, a sugar industry rehabilitation scheme and a population and health project. The bank said two loans will support Jamaica's structural adjustment program -- a 40 mln dlr loan for the trade and financial sector and a 20 mln dlr loan for the public enterprise sector. The bank said a 34 mln dlr loan is to help Jamaica's sugar industry become self-sufficient and meet both domestic demand and the export demand of the United States and European Community. The fourth loan, for 10 mln dlrs, is to improve family planning programs and health care. Reuter 19-JUN-1987 13:08:32.00 F f1715 reute f f BC-IC-INDUSTRIES-N 06-19 0010 ****** 19-JUN-1987 13:11:55.92 acq usa F f1728 reute u f BC-GALAXY-<GTV>-TO-SELL 06-19 0106 SIKESTON, Mo., June 19 - Galaxy Cablevision L.P. said it signed a letter of intent to sell the assets of its cable television systems in West Texas which serve about 4,600 basic subscribers through nine cable television systems. Terms were not disclosed and the Galaxy did not identify the buyer. The company also said it will make its first cash dividend of 37 cents per unit on or about August 15 to holders of record June 30. In March, Galaxy completed a public offering of 2.2 mln units for 43 mln dlrs and acquired the assets of 132 cable television systems for about 34 mln dlrs. Reuter 19-JUN-1987 13:13:16.06 acq F f1732 reute f f BC-NORTH-AMERICAN 06-19 0011 ****** 19-JUN-1987 13:13:33.56 usa F f1733 reute b f BC-/IC-INDUSTRIES-<ICX> 06-19 0065 CHICAGO, June 19 - IC industries Inc said Karl Bays has been elected chairman and chief executive officer effective July one. William Johnson, who is recovering from a recent stroke, has been named chairman emeritus and will continue as a member of the board. Bays is currently chairman of Baxter Travenol Laboratories Inc <BAX>. Reuter 19-JUN-1987 13:14:39.27 acq usa F f1739 reute u f BC-STIFEL-FINANCIAL-<SF> 06-19 0063 ST LOUIS, Mo., June 19 - Stifel Financial Corp said it received an unsolicited merger proposal from privately held Laidlaw Adams and Peck Inc for 15 dlrs a share in cash for all its outstanding shares. The proposal, which expires July 1, values Stifel at about 54 mln dlrs. Stifel has about 3.6 mln shares outstanding. The company said its management and board of directors will consider the proposal but have not set a date to meet. It said the proposal is currently being studied by Goldman Sachs and Co and legal counsel. It said conditions of the proposal include obtaining necessary financing, satisfactory completion of a due diligence investigation by Laidlaw, and execution of employment contracts with key employees to be designated by Laidlaw. Reuter 19-JUN-1987 13:14:43.38 money-supply canada E V RM f1740 reute f f BC-CANADIAN-MONEY-SUPPLY 06-19 0013 ****** 19-JUN-1987 13:15:39.07 crude usairanalgerialibyasaudi-arabiairaniraqkuwait opec F A Y f1743 reute r f BC-OIL-PRICES SCHEDULED 06-19 0089 By SUSAN SHERER, Reuters NEW YORK, June 19 - U.S. crude oil prices are at their highest level in more than a year ahead of next week's OPEC meeting, even though most industry analysts do not expect any policy changes from the session. They said prices, which have steadily climbed since the organization's accord in December, have risen on technical factors within the market and concerns about supplies because of the Iran-Iraq war, which could disrupt deliveries from the Gulf. The U.S. benchmark crude West Texas Intermediate is trading around 20.55 dlrs in the July contract on New York Mercantile Exchange's energy futures and in the spot market. That is its highest level since January 1986. OPEC conference president Rilwanu Lukman, who is Nigeria's oil minister, said Friday he expects the meeting in Vienna to be brief and calm and that OPEC's current price and production agreement may only need a slight review. Although most industry experts expect just a reaffirmation of the December agreement, oil prices continue to climb due to a desire to hedge positions in case of any surprises. Analysts expect the higher prices to continue until soon after the OPEC meeting. At that point, barring any increased tension in the Gulf or changes in OPEC's policies, prices should begin easing. "OPEC will probably not do anything it hasn't already agreed to in December because oil prices are firm," said John Hill, a vice president at Merrill Lynch Futures. OPEC agreed in December to maintain official oil prices at 18 dlrs a barrel and raise the group's production ceiling to 16.6 mln barrels per day in the third quarter and to 18.3 mln barrels in the fourth quarter. This agreement helped send prices sharply higher, rising from 15 dlrs a barrel in early December. Several OPEC members who are price hawks, including Iran, Algeria and Libya, will seek a higher official price and a reduction in output. "And if U.S. West Texas Intermediate crude continues to trade above 20 dlrs a barrel, there is a greater chance that OPEC will raise its official 18 dlrs price," said Nauman Barakat, analyst at Smith Barney, Harris Upham and Co. But most analysts expect the more moderate producers, such as Saudi Arabia, to block any changes in policy. "The meeting will be a non-event with no change in the official prices because OPEC, and in particular the Saudis, are committed to stabilizing the market," said Rosario Ilacqua, analyst with L.F. Rothschild. However, some analysts said OPEC may need to hold a meeting in September to re-evaluate market conditions. Overproduction by OPEC will become a real problem in the fourth quarter when the quota is raised to 18.3 mln barrels a day and Iraq's pipeline through Turkey brings another 500,000 barrels to the market each day, said John Lichtblau, president of Petroleum Industry Ressearch Foundation. Most expect Saudi Arabia to oppose a price increase at this meeting but many look for an increase by year-end to 20 dlrs to offset the decline in the dollar. Oil prices are denominated throughout the world in dollars, so as the currency declines, producers receive less money for their oil. "The only real production restraint in OPEC is Saudi Arabia," said Sanford Margoshes, analyst at Shearson Lehman Brothers. "In the second half of the year we expect the Saudis not to produce at their 4.1 mln barrel a day quota and therefore act as a vehicle to stablize the market and pave the way for a two dlrs a barrel price increase at the December 1987 meeting," he said. One uncertain factor is the course of the Iran-Iraq war. "The wild card is the increased tensions in the Persian Gulf," said Frank Knuettel, analyst with Prudential-Bache Securites. Oil tankers taking oil from Iraq and Kuwait have been regular targets for Iranian planes. The Reagan administration is planning to put Kuwait tankers under the protection of the U.S. flag, with naval escorts. "Extra (oil) inventories are needed during a time of crisis like this, and just general nervousness over an incident that could disrupt oil supplies drives prices up," Knuettel said. Reuter 19-JUN-1987 13:16:09.45 acq usa F f1746 reute u f BC-N.Y.-TIMES-<NYT>-TO-B 06-19 0102 NEW YORK, June 19 - The New York Times Co said it had an agreement to buy the Gwinnett Daily News, an evening newspaper published in Lawrenceville, Ga., Terms were not disclosed. The company said Gwinnett has a weekday circulation of about 27,500 and a Sunday circulation of about 30,900. The New York Times also said Gwinnett County, a northeast suburb of Atlanta, is the fastest-growing county in the country. The purchase agreement includes the Forsyth County News, published on Wednesday and Sunday and the Winder News, a weekly, among other publications. Reuter 19-JUN-1987 13:17:35.38 uk A F f1753 reute d f BC-LLOYD'S-OF-LONDON-DEC 06-19 0113 LONDON, June 19 - Lloyd's of London, the insurance market, said its offer for a settlement of the five-year old <PCW Underwriting Agencies> affair, which involved losses totaling about 235 mln stg, was unconditional. For the offers to become unconditional, there had to be 90 pct acceptance by those Lloyd's members affected by the PCW fraud, although this level could be reduced by a caretaker agency set up in 1985 to manage the affair. The offers involve one-off cash payments by PCW names - investors who guarantee insurance risks - in exchange for a Lloyd's guarantee ending their exposure to PCW-related claims. Reuter 19-JUN-1987 13:18:20.38 usa F f1756 reute r f BC-CHANCELLOR-<CHCR.O>-D 06-19 0061 BOSTON, June 19 - Chancellor Corp said its board declared a special dividend of 17 cts per share payable Aug 14, 1987, to shareholders of record July 31, 1987. The company said it is not its intention to pay quarterly dividends, but from time to time, pays special dividends if the board believes it appropriate. Reuter 19-JUN-1987 13:20:06.33 usa F f1763 reute r f BC-FURTHER-US-DEFENSE-WR 06-19 0104 By Steven Radwell, Reuters NEW YORK, June 19 - The tug-of-war over who pays to develop new weapons--contractors or the government--is likely to lead to more writeoffs by defense firms, analysts said. Singer Co <SMF> and Northrop Corp <NOC> recently announced planned second quarter writeoffs related to costs of major defense programs under fixed-price government contracts. "It's a case of companies paying for things that in a different environment the Defense Department would have paid for," said Howard Mager of Donaldson Lufkin Jenrette Securities Corp. In recent years, the Defense Department, DOD, has increased competitive bidding for weapons contracts and has asked contractors to pay more of the costs of developing weapons programs. The moves have helped cut waste and abuse by contractors but have also dictated that the firms assume much more risk, analysts said. "It's a stricter environment," said Anthony Hatch of Argus Research Corp. "Contractors are absorbing more of the cost and more of risk and that's likely to be the trend for some time to come." The trend will probably lead to further writeoffs, the analysts said. Programs most prone, they agreed, are the Advanced Tactical Fighter, ATF, a new generation, high-technology fighter plane being developed for the U.S. Air Force, the C-17 air transport plane and the Light Helicopter Experimental, LHX, under development for the Army. Other programs may also be affected, they said. The Air Force is expected to order 750 of the advanced fighter planes in the 1990s at a cost of up to 40 billion dlrs, analysts have said. Two teams of contractors are competing for a contract to develop a prototype ATF. Lockheed Corp <LK>, General Dynamics Corp <GD> and Boeing Co <BA> are teamed in competition against Northrop Corp <NOC> and McDonnell Douglas Corp <MD> on ATF. The two teams fighting for an award to develop the LHX are Bell Helicopter, a unit of Textron Inc <TXT>, coupled with McDonnell Douglas, and United Technologies Corp's <UTX> Sikorsky paired with Boeing. The C-17 is a four-engine transport plane. McDonnell Douglas's Douglas Aircraft Co is working on two test planes, and a production award for up to 210 of the aircraft should be made by late 1989, a Douglas Aircraft spokesman said. Under the government's new procedures, contractors can spend hundreds of millions of dollars on development and typically recoup their investments during production. But now the government sometimes awards production to a second contractor who did not develop the system. General Electric Co <GE>, for example, developed the F404 engine for the Navy. But two weeks ago, the Pentagon awarded 30 pct of F404 production to United Technologies' Pratt and Whitney. Such tactics have increased competition but the government now risks decimating the industry by making it too competitive, said Michael LaTronica of Redding Research Group. "Two years ago, defense contractors were their own worst enemies. They were not cost efficient," LaTronica said. "Now DOD has allowed the situation to swing so far back the other way that you may be in danger of losing the defense industry as a national resource." While the nation as a whole has posted trade deficits in recent years, aerospace and defense has exported more products than it imported, he noted. LaTronica and others said, however, that changes in government procurement may be coming. "I hear that the Pentagon is looking into the situation," said John Diamantis, defense analyst at Pershing and Co. He said that some small defense electronics firms believe the Pentagon will begin re-evaluating procurement policy and perhaps start paying more development money. Redding Research's LaTronica, who still likes the industry despite the probability of additional unforeseen writeoffs, said, "There's been a swing in sentiment. The defense bashing psychology of the last few years is starting to shift." LaTronica noted that one government official has recently suggested that the winner of the ATF prototype award should get sole production of the plane for a specified time. The investments are large. The Lockheed, General Dynamics, Boeing ATF team, for example, is spending 691 mln dlrs just to develop the prototype. The danger the Pentagon runs if changes are not made is that companies will hesitate to bid to develop a program but instead will wait for a second source production award. "But it may take a company going bust to really change people's thinking," LaTronica said. Reuter 19-JUN-1987 13:22:59.41 acq uk F f1777 reute u f BC-REED-SAYS-IT-HAS-NO-C 06-19 0089 LONDON, June 19 - Reed International Plc <REED.L> said it had no comment to make on U.K. stock market rumors that Harcourt Brace Jovanovich Inc <HBJ> may make a bid for the company in order to escape unwelcome offers from Robert Maxwell's British Printing and Communication Corp <BPCL.L>. A spokeswoman for Reed said earlier analysts forecasts that a bid for Reed will have to be about 700 mln stg were totally unrealistic, adding that its current market is about 2.7 billion stg. Reuter 19-JUN-1987 13:25:57.90 crude usa Y f1788 reute r f BC-UNOCAL<UCL>-SCRAPS-FL 06-19 0111 LOS ANGELES, June 19 - Unocal Corp said it told the U.S. Treasury Department that it will not include fluidized bed combustion technology, a method for the more efficient burning of solids, at its Parachute Creek oil shale project in Colorado due to high costs. Under a 1985 agreement with the now-defunct U.S. Synthetic Fuels Corp, Unocal said it would study using the technology at the oil shale plant. In return the company would have been eligible for 500 mln dlrs in loan gaurantees and price supports from the U.S. Treasury Department, which took over the contract from the Synthetic Fuels Corp, Unocal said. Unocal said its studies showed the cost for the fluidized bed combustion facility would have exceeded 352 mln dlrs, compared with an original estimate of 260 mln dlrs. The fluidized bed facility would have provided heat and electricity for the oil shale project, Unocal said. Last year's fall in oil prices and the loss of investment tax credit under the Tax Reform Act made the project uneconomical even with government price supports and loan guarantees, Unocal said. The Parachute Creek oil shale plant produces about 4,000 to 5,000 barrels per day of crude shale oil, Unocal said. Reuter 19-JUN-1987 13:26:10.54 usa F f1789 reute u f BC-MERCK-<MRK>,-SQUIBB-< 06-19 0107 By Samuel Fromartz, Reuters NEW YORK, June 19 - Merck Co <MRK> and Squibb Corp <SQB> will benefit from a study that shows lower levels of blood cholesterol slows the build-up of fat in the heart's arteries, lowering the risk of heart attacks, industry analysts said. Both companies have developed drugs that slow the body's production of cholesterol although Merck is about 18 months ahead of Squibb with a drug expected to be approved this year. "Certainly this study will create greater acceptance of anti-cholesterol drugs," said Robert Uhl, a drug analyst at F. Eberstadt Fleming. Although neither company's drug was used in the study, which was conducted by a team of scientists at the University of Southern California School of Medicine, both are leaders in a new class of drugs that fight cholesterol. The study, reported in the Journal of the American Medical Association, showed lower levels of cholesterol, achieved through a combination of drugs and special diet, slowed and in some cases reversed the build up of fatty deposits in the heart's arteries. Such build up leads to heart attacks, the leading cause of death in the U.S. Health officials have said lower levels of cholesterol could immediately benefit six mln Americans who suffer symptoms of coronary artery disease. The study advocated reduction of cholesterol in some 40 mln Americans. As the anti-cholesterol crusade gains momentum, industry analysts and executives believe a healthier diet and drug therapy will gain wider acceptance. In this context, pharmaceutical analyst David Crossen of Sanford C. Bernstein said "the culture can shift in terms of drug treatment because some people arn't going to fundamentally alter their diets". The worldwide anti-cholesterol drug market is valued at 600 mln dlrs a year. But as the new drugs reach the market, analysts estimate revenues will swell to 1.5 billion dlrs annually in about next five years. The drugs used in the study, in combination with the low cholesterol diet, were niacin, a common compound, and colestipol, a drug Upjohn Co <UPJ> has sold since 1977. But these two drugs have some drawbacks that analysts say the new drugs from Merck and Squibb avoid. "Niacin leads to tremendous amounts of flushing, constipation, or stomach upset," Crossen said. Colestipol, a sand-like powder, comes in a dosage of 15 to 30 grams and must be mixed with a glass of water. "It isn't fun to take," Crossen said. Drug analyst Uhl said the drawbacks restricted Upjohn's sales for the drug, which he said is under 10 mln dlrs a year. In contrast, the new drugs from Merck and Squibb have little side effects because they target a key factor in the body's production of cholesterol -- an enzyme found in the liver. "Past methods of getting down cholesterol have been rather variable," said Dr. Charles Sanders, an executive vice president at Squibb. The new drugs, in contrast, interupt a clear step in cholesterol production, Sanders said. Also, the new drugs are easier to take since they come in a tablet form swallowed once or twice a day. Merck's drug, Mevacor, received a recommendation from an advisory panel of the Food and Drug Administration earlier this year and is expected to receive full approval for sale in late summer or fall. Squibb's drug, eptastatin, is expected to be submitted for regulatory approval in the first or second quarter 1988, Sanders said. Warner Lambert Co <WLA> and Bristol Meyers Co <BMY> also have cholesterol fighting compounds similar to the Upjohn drug, but only Merck and Upjohn are ahead in the new class of cholesterol inhibitors. Reuter 19-JUN-1987 13:26:56.15 trade uk RM f1794 reute u f BC-CIVIL-SERVICE-STRIKE 06-19 0074 LONDON, June 19 - Civil service industrial action started early this month will delay the publication of May's U.K. Overseas trade figures, which had been due out next Thursday, a Trade and Industry Department statement said. A department spokesman said the figures will probably be put back by about a month. The June trade figures, due in late July, will also be delayed, he added. REUTER 19-JUN-1987 13:27:31.03 money-supply canada V E RM f1795 reute b f BC-CANADIAN-MONEY-SUPPLY 06-19 0099 OTTAWA, June 19 - Canadian narrowly-defined money supply M-1 fell 430 mln dlrs to 35.65 billion dlrs in week ended June 10, Bank of Canada said. M-1-A, which is M-1 plus daily interest chequable and non-personal deposits, fell 874 mln dlrs to 79.97 billion dlrs and M-2, which is M-1-A plus other notice and personal fixed-term deposits, fell 952 mln dlrs to 184.45 billion dlrs. M-3, which is non-personal fixed term deposits and foreign currency deposits of residents booked at chartered banks in Canada, fell 549 mln dlrs to 225.30 billion dlrs. Chartered bank general loans outstanding fell 584 mln dlrs to 127.58 billion dlrs. Canadian liquid plus short term assets rose 20 mln dlrs to 37.96 billion dlrs and total Canadian dollar major assets of the chartered banks fell 753 mln dlrs to 229.05 billion dlrs. Chartered bank net foreign currency assets fell 92 mln dlrs to minus 1.92 billion dlrs. Notes in circulation totalled 17.11 billion dlrs, up 59 mln dlrs from the week before. Government cash balances rose 26 mln dlrs to 2.65 billion dlrs in week ended June 17. Government securities outstanding fell 424 mln dlrs to 227.38 billion dlrs in week ended June 17, treasury bills rose 700 mln dlrs to 78.00 billion dlrs and Canada Savings Bonds fell 121 mln dlrs to 42.45 billion dlrs. Reuter 19-JUN-1987 13:28:13.43 platinum ukussrsouth-africa RM f1797 reute u f BC-PLATINUM-DEMAND-ESTIM 06-19 0101 LONDON, June 19 - Demand for platinum could reach 3.4 mln ounces by 1991, compared with an estimated offtake of 2.88 mln in 1986, Chris Clark, platinum marketing director for Johnson Matthey Plc said. Clark told a meeting of the Minerals Research Organisation in Milton Keynes he foresaw a 250,000 ounce increase in consumption for use in autocatalysts, currently the largest single application for platinum. Jewellery consumption is set to rise by 70,000 ounces, Clark predicted in his speech, the text of which was released in London today. Clark said his forecast allowed for only a modest further increase in investment buying and may well be cautious. He said South Africa was the most likely source of additional supplies and will need to increase output by about 500,000 ounces to meet increased demand. The capital investment required to produce the additional output would be around one billion U.S. Dlrs and the political climate may make it difficult to raise the money, he said. The Soviet Union, whose exports have declined since the 1970s, might increase sales to the West by about 50,000 ounces, Clark said. "The very probability of a growth in demand set against the massive investment required for expansion - and that expansion only being viable in South Africa or Russia - leads me to conclude that the price of platinum will be substantially underpinned in the medium to long-term," Clark said. REUTER 19-JUN-1987 13:31:49.20 usa F f1820 reute r f BC-<TRAMMEL-CROW>-TO-BUY 06-19 0083 CHICAGO, June 19 - Trammel Crow Co said it agreed to buy the 42-story headquarters building of First Wisconsin Corp, for undisclosed terms. The privately held real estate development and investment firm said it plans to develop the remainder of the eight-acre site in Milwaukee to include a tower with office space, luxury condominiums and retail stores. First Wisconsin will continue to occupy 19 floors in First Wisconsin Center, it said. Reuter 19-JUN-1987 13:32:01.61 acq usa F f1822 reute r f BC-METRO-AIRLINES-<MAIR. 06-19 0062 DALLAS, June 19 - Metro Airlines Inc said it has agreed in principle to acquire privately held Chaparral Airlines inc for 5,700,000 dlrs in cash. Chaparral provides regularly scheduled service out of Dallas/Fort Worth Regional Airport as an affiliated carrier of AMR Corp <AMR> and had revenues in 1986 of 14.1 mln dlrs. Reuter 19-JUN-1987 13:32:17.76 usa F Y f1823 reute r f BC-WEATHERFORD-INTERNATI 06-19 0068 HOUSTON, June 19 - Weatherford International Inc said executive vice president and chief operating officer Kurt K. Bushati will leave September One to accept a senior operating position with the Austrian national oil company. The company said president and chief executive officer Eugene L. Butler will assume the added duties of chief operating officer. Reuter 19-JUN-1987 13:32:24.11 usa F A f1824 reute u f BC-DUFF/PHELPS-LOWERS-IN 06-19 0077 CHICAGO, June 19 - Duff and Phelps said it lowered its ratings on senior debt and preferred stock to DP-7 (low A) from DP-6 (high A), affecting nearly 670 mln dlrs in debt securities. The action reflects the increased financial leverage resulting from the company's 1986 acquisition of Hammmermill Paper, which raised the fixed obligations ratio to 34 pct, compared with 26 pct in 1985, Duff and Phelps said. Reuter 19-JUN-1987 13:33:23.60 usa A RM f1830 reute r f BC-CRAZY-EDDIE-<CRZY.O> 06-19 0114 NEW YORK, June 19 - Standard and Poor's Corp said it is keeping Crazy Eddie Inc's 81 mln dlrs of B-rated convertible subordinated debt on creditwatch with negatives implications. The company's implied senior debt rating is BB-minus. S and P said it considers a downgrade of Crazy Eddie more likely because of a rash of senior management resignations and Chemical Bank's withdrawal of a 52 mln dlr credit line. Crazy Eddie has yet to respond to two competing takeover bids, one by founder and chairman Eddie Antar with First City Capital Corp and a second for about 235 mln dlrs by Entertainment Marketing Inc, S and P noted. Reuter 19-JUN-1987 13:33:59.67 usa A RM f1832 reute r f BC-MANUFACTURERS<MHC>-SE 06-19 0102 NEW YORK, June 19 - Manufacturers Hanover Corp is offering 200 mln dlrs of two-year senior extendable notes with a final maturity of 1993 yielding 8.30 pct, said lead manager Shearson Lehman Brothers Inc. The notes have an 8-1/4 pct coupon and were priced at 99.90 to yield 85 basis points more than the when-issued two-year Treasury note. After two years, holders can sell the notes back to Manufacturers at par. In 1989 and every year until 1993, the issuer will conduct an open reset on the yields of those notes not sold back to it, Shearson said. Moody's Investors Service Inc rates the Manufacturers issue A-3, compared to an A grade by Standard and Poor's Corp. The gross spread is 3.50 dlrs, the selling concession is two dlrs and the reallowance is 1.25 dlrs. First Boston, Prudential-Bache and Salomon Brothers co-managed the deal. Reuter 19-JUN-1987 13:34:45.15 usa A RM f1836 reute r f BC-LEASEWAY-<LTC>-DEBT-D 06-19 0113 NEW YORK, June 19 - Standard and Poor's Corp said it downgraded to B-plus from A about 50 mln dlrs of collateral trust notes of Leaseway Transportation Corp. S and P cited a leveraged buyout offer from an investor group that was organized by Citibank and included management. The buyout of Leaseway will result in significant deterioration of its balance sheet, the agency pointed out. Leaseway's strong competitive position in auto hauling and retail support services will enable it to generate sufficient cash flow to service commitments. But S and P expects debt leverage to remain extremely high for the forseeable future. Reuter 19-JUN-1987 13:35:55.03 usa F f1840 reute d f BC-AMITY-BANCORP-INC-<AM 06-19 0052 NEW HAVEN, Conn - June 19 Semi-annual div eight cts vs 15 cts prior Pay Aug 1 Record July 1 NOTE: Before the establishment of the Amity Bancorp Inc holding company, Amity Bank declared a full year dividend of 15 cts for the year ended December 31, 1986. Reuter 19-JUN-1987 13:36:39.34 earn usa F f1841 reute r f BC-TELCO-SYSTEMS-INC-<TE 06-19 0058 NORWOOD, MASS., June 19 - Shr loss 46 cts vs loss five cts Net loss 3,922,000 vs loss 420,000 Sales 16.0 mln vs 23.9 mln Avg shrs 8,567,000 vs 8,458,000 Nine mths Shr loss 1.02 dlrs vs profit 35 cts Net loss 8,685,000 vs profit 2,978,000 Avg shrs 8,547,000 vs 8,437,000 Reuter 19-JUN-1987 13:37:07.54 F f1843 reute f f BC-FEDERAL-CO-<FFF 06-19 0013 ****** 19-JUN-1987 13:37:31.03 usa F f1844 reute r f BC-CHYRON-<CHY>-GETS-10 06-19 0066 MELVILLE, N.Y., June 19 - Chyron Corp said it has entered into a long term 10 mln dlr revolving credit agreement with European American Bank. It said the agreement will allow it to convert 10 mln dlrs of short-term debt to long-term debt. The agreement is for a period of three years, with an option to extend payments for another four years, it said. Reuter 19-JUN-1987 13:38:06.89 acq usa F f1845 reute d f BC-ALTUS-BANK-<ALTS.O>-F 06-19 0088 MOBILE, ALA., June 19 - Altus Bank said it has not been able to reach a definitive agreement to buy Horizon Financial Corp, Horizon Funding and 2.8 billion dlrs in loan servicing from Victor Savings and Loan Association. Altus, formerly known as First Southern Federal Savings and Loan Association, earlier announced the signing of a letter of intent to make the acquisitions. Horizon Financial and Horizon Funding both are units of Victor Savings and Loan Association. Reuter 19-JUN-1987 13:38:46.36 earn usa F f1848 reute d f BC-MARS-GRAPHIC-SERVICES 06-19 0032 WESTVILLE, N.J., June 19 - Shr 12 cts vs 10 cts Net 189,578 vs 100,254 Sales 3,403,914 vs 3,122,983 Avg shrs 1,617,600 vs 954,400 Reuter 19-JUN-1987 13:39:03.92 usa F f1849 reute s f BC-WINTHROP-INSURED-MORT 06-19 0033 BOSTON, July 19 - Qtly div 35 cts vs 35 cts prior Pay July 15 Record June 30 NOTE: Full name is Winthrop Insured Mortgage Investors II Reuter 19-JUN-1987 13:41:16.97 usa F f1856 reute s f BC-ARTHUR-D.-LITTLE-INC 06-19 0025 CAMBRIDGE, Mass., June 19 - Qtly div 17-1/2 cts vs 17-1/2 cts prior Pay July 15 Record June 30 Reuter 19-JUN-1987 13:41:33.06 usa F f1858 reute s f BC-AMES-DEPARTMENT-STORE 06-19 0026 ROCKY HILL, Conn., June 19 - Qtly div 2-1/2 cts vs 2-1/2 cts prior Pay Sept 18 Record Aug 21 Reuter 19-JUN-1987 13:41:40.51 acq usa F f1859 reute r f BC-MARCADE-GROUP-INC-<MA 06-19 0074 NEW YORK, June 19 - Marcade Group said it had agreed to buy Europe Craft Imports Inc for a combination of cash and common stock. The company said Europe Craft designs, imports and distributes menswear and sportswear under the Member's Only brand name. The company said Europe Craft had sales of 70 mln dlrs last year. Marcade said this latest deal is part of an ongoing acquisition phase. Reuter 19-JUN-1987 13:41:44.19 usa F f1860 reute s f BC-UNITIL-CORP-<UTL>-SET 06-19 0022 BEDFORD, N.H., June 19 - Qtly div 47 cts vs 47 cts prior Pay Aug 15 Record Aug Three Reuter 19-JUN-1987 13:42:54.40 usa F f1862 reute h f BC-MERCK-<MRK>-OPENS-NEW 06-19 0087 RAHWAY, N.J., June 19 - Merck and Co Inc said it has opened a new 80 mln dlr research facility at its Rahway, N.J., headquarters. The company said researchers in the new building will be involved in research on MK-906 for reducing the size of enlarged prostate glands, an agent to promote wound healing the leukotiene substances linked to asthma and arthritis, new vaccines made by genetic engineering, fermentation broths and safe and cost-effective ways of producing new drugs. Reuter 19-JUN-1987 13:43:31.02 usa cboenyse F f1864 reute d f BC-OPTIONS-ON-VIACOM-<VI 06-19 0138 CHICAGO, June 19 - Options on Viacom International stock have been adjusted to account for the payment of a dividend on preferred stock, the Chicago Board Options Exchange said. Trading in Viacom stock at the New York Stock Exchange was halted this morning, after the company announced a preferred stock dividend at a rate of 0.025834 of preferred stock for each preferred share held. The Chicago options exchange said all exercises of the options as of today require delivery or receipt of 30 shares of preferred stock, 20 shares of common, a cash payment of 4,322.37 dlrs and an undetermined cash payment in lieu of fractional shares from the preferred dividend payment. The options symbol for Viacom will be changed to VIY from VIZ as of June 22, the exchange said. Reuter 19-JUN-1987 13:43:45.14 canada E f1865 reute a f BC-canchem 06-19 0106 JASPER, Alberta, June 19 - The 72-member Canadian Chemical Producers Association said it adopted a code of practice for the safe transport of chemicals and their by-products. "Through cooperation with the transportation industry, we will not only minimize transportation accidents but also the risks to people and the environment," association president David Buzzelli said at the annual meeting in Jasper. He said as a first step the association will conduct an internal survey rating the safety capabilities of trucking companies that transport chemicals. Reuter 19-JUN-1987 13:46:46.90 usa F f1866 reute h f BC-PACIFIC-INTERNATIONAL 06-19 0047 HONOLULU, June 19 - Pacific International Services Corp said it plans to register with the Securities and Exchange Commission in July to issue convertible subordinated debentures. The company did not detail the prospective offering. Reuter 19-JUN-1987 13:48:05.37 coffee netherlandsbrazilcolombiakenyaindonesianicaraguacosta-ricael-salvador ico-coffee C T f1867 reute u f BC-EUROPEAN-COFFEE-TRADE 06-19 0108 By Jeremy Lovell, Reuters AMSTERDAM, June 19 - European coffee roasters and traders have agreed to propose a new formula for calculating International Coffee Organization, ICO, quotas, Dutch Coffee Trade Association chairman chairman Frits van Horick said. Van Horick, who is a council member of the European Coffee Federation, was speaking at the end of the ECF annual meeting. The new formula is based on six-year moving averages and would give Brazil, the world's biggest coffee producer, an unchanged quota for the remaining two years of the current coffee agreement, van Horick said. If accepted by the consumer and producer members of the ICO, the formula could also be a basis for negotiating a new agreement, van Horick said. Coffee quotas were suspended in February last year when prices shot up on fears of a drought-induced crop disaster in Brazil. Although prices are now considerably lower, consumers and producers have been unable to agree on re-introduction. "Brazil has been the most strongly against any change in the formula because it feared a lower quota. But our proposal leaves it very little to object to," van Horick said. "The existing quota system is far too rigid and does not reflect supply and demand reality," he said. "Our formula builds flexibility into the system and will benefit almost everyone." Although full implications of the new formula have still to be worked out, initial estimates suggest countries such as Colombia, Kenya, Indonesia and Costa Rica would get slightly higher quotas, while others such as the Ivory Coast, El Salvador and Nicaragua would lose quota share, van Horick said. Because the proposal provides that future quota distribution must reflect current demand and actual supply, it should also prevent under-shipment of quota as countries doing so would automatically prejudice their following year's quota. "If the ICO consumers accept our proposal it stands at least a fair chance of being accepted by the producers at the September meeting, most of whom are generally in favour of a new quota formula, " van Horick said. At the same time much will depend on Brazil's attitude. "Brazil is increasingly isolated on the producer side. If there is no frost damage to its coffee crop over the next two months and most other producers favour our proposal, we might just get an agreement," van Horick added. Reuter 19-JUN-1987 13:54:05.07 usa F A RM f1882 reute b f BC-CONT'L-ILLINOIS-<CIL> 06-19 0088 CHICAGO, June 19 - Continental Illinois Corp will add to its reserves against bad loans from less developed countries when its board meets next week, E.F. Hutton analyst Fred Meinke said. Meinke said a Continental executive told him Friday the banking firm, parent of Continental Illinois National Bank and Trust Co of Chicago, will add to its reserves next week along the lines of what other banks have been doing since Citicorp <CCI> initiated the provisioning last month. Continental Illinois has about 2.6 billion dlrs in loans to Latin American countries. Meinke said he thinks Continental Illinois will add about 25 pct or more of its Latin American exposure to its loss reserve, or about 650 mln dlrs or more. "They have a big reserve already. My guess this will be on top of that," he said. available. Reuter 19-JUN-1987 13:54:28.22 usa F f1885 reute r f BC-HILLS-DEPARTMENT-STOR 06-19 0100 CANTON, Mass, June 19 - Hills Department Stores Inc said it has decided to amend the registration on file with the Securities and Exchange Commission covering its planned initial offering. The company said it expects to offer three mln common shares at a filing range of 11 to 12 dlrs a share along with a 40 mln dlr offering of convertible junior subordinated debentures instead of the 6.9 mln common shares proposed in the pending registration. Hills said it expects to file a registration statement on the proposed changes within two weeks. Reuter 19-JUN-1987 13:55:52.47 usahungary A RM f1888 reute r f BC-WORLD-BANK-LOANS-HUNG 06-19 0092 WASHINGTON, June 19 - The World Bank said it approved a 70 mln dlr loan to Hungary to help finance a 833.1 mln dlr telecommunications project. The Bank noted that Hungary, which until recently had given telecommunications low priority, recognized that inadequate telecommunications are a serious constraint to economic development and reform. The project extends through 1991 and will help Magyar Posta, the state enterprise overseeing the telecommunications sector, meet its long-term development goals. Reuter 19-JUN-1987 13:58:01.54 grainwheat brazilfrance C G f1890 reute u f BC-BRAZIL-BUYS-FRENCH-WH 06-19 0100 RIO DE JANEIRO, June 19 - Brazil has bought 75,000 tonnes of French wheat at tender, a Brazilian Wheat Board spokesman said. He said the Board accepted offers for 25,000 tonnes of wheat from grain firm J. Souffle at 80.49 dlrs per tonne Fob for August shipment. For September shipment, the Board bought 25,000 tonnes from Graniere at 79.32 dlrs per tonne Fob, and for October shipment it accepted 25,000 tonnes from Andre and Companie at 79.47 dlrs per tonne Fob. The next tender, for Aug/Sept/Oct shipment, was set for June 24, the spokesman said. Reuter 19-JUN-1987 13:58:53.11 F f1891 reute f f BC-MANUFACTURERS-N 06-19 0015 ****** 19-JUN-1987 14:00:49.58 usa A RM f1894 reute r f BC-SAINSBURY-<SBRY.L>-LO 06-19 0109 NEW YORK, June 19 - Standard and Poor's Corp said it affirmed the AA long-term debt of J. Sainsbury PLC. S and P cited Sainsbury's offer for the shares of Shaws Supermarkets Inc's <SHAW> it does not own. Sainsbury currently holds 28.5 pct of that company. The acquisition will be financed by an equity issue, so the impact on Sainsbury's capital structure will not be significant, the agency said. The merger will provide an opportunity for expansion in an area with favorable economic trends, although it will lower trading margins by more than Sainsbury's historic levels, S and P pointed out. Reuter 19-JUN-1987 14:01:00.14 acq usa F f1896 reute u f BC-N.-AMERICAN-COMMUNICA 06-19 0089 HECTOR, Minn., June 19 - North American Communications Corp said it is considering several options to maximize shareholder value, including a possible sale, merger, corporate restructuring, or leveraged buyout. Trading in the company's stock was halted pending an announcement. The company, which owns and operates 47 cable television systems in Minnesota and Wisconsin, said it retained Communications Equity Associates as its financial adviser to explore alternatives. Reuter 19-JUN-1987 14:01:10.90 usa F f1898 reute u f BC-FEDERAL-CO-<FFF>-PRED 06-19 0104 NEW YORK, June 19 - Federal Co said its fiscal year ended May 30 will be a record year with net income almost double that of the previous fiscal year. The company's chairman R. Lee Taylor told security analysts that Wall Street estimates of earnings per share in the range of 4.25-4.50 dlrs are in line with what the company expects. The company said in fiscal 1986 it posted earnings of 2.24 dlrs a share on sales of 1.2 billion dlrs. It said in the first nine months of this year it had earnings of 3.55 per share against 1.66 dlrs per share in the same 1986 period. Federal Co said it also decided to change its name to Holly Farms Corp. The company said this will identify it with its strongest selling brand. reuter 19-JUN-1987 14:04:16.16 acq F f1916 reute f f BC-MURPHY-OIL-PROP 06-19 0014 ****** 19-JUN-1987 14:04:28.10 V RM f1917 reute f f BC-U.S.-MAY-BUDGET 06-19 0013 ****** 19-JUN-1987 14:05:31.27 alum usa M F f1918 reute u f BC-alcan-aluminum-price 06-19 0053 NEW YORK, June 19 - Alcan Aluminum Corp, a subsidiary of Alcan Aluminium Ltd, said it increased its U.S. primary aluminum prices by two cents a lb, effective yesterday. The new prices are 72 cents a lb for ingot and 80 cents for extrusion billet, the company said. Reuter 19-JUN-1987 14:06:04.66 F f1919 reute b f BC-SITHES-ENERGIES 06-19 0013 ****** 19-JUN-1987 14:06:17.76 acq usa F f1920 reute u f BC-PRIMERICA-<PA>-COMPLE 06-19 0067 GREENWICH, CONN., June 19 - Primerica Corp said it completed the previously announced acquisition of Smith Barney Inc for 750 mln dlrs in cash. Primerica, wh ich changed its name in April from American Can Co, said Smith Barney, Harris Upham and Co Inc, wholly owned by Smith Barney Inc, will add more than 100 domestic and overseas branch offices. Reuter 19-JUN-1987 14:07:01.35 usa F f1921 reute r f BC-BLOOMFIELD-SAVINGS-<B 06-19 0106 BLOOMFIELD TOWNSHIP, Mich., June 19 - Bloomfield Savings and Loan Association F.A. said its receipt of 8.5 mln dlrs as partial settlement from a lawsuit will have a "substantial positive impact" on its earnings for 1987. The thrift had net loss of 4,095,000 dlrs or 1.85 dlrs a share in 1986. The 8.5 mln dlrs will be reported during the second quarter, it said Bloomfield Savings said it is continuing to seek to recover the remaining 5.5 mln dlrs of the total 14 mln dlr judgment against United Federal Savings and Loan Association of Durant, Okla., over a 1985 real estate loan. Reuter 19-JUN-1987 14:07:45.40 usa Y F f1923 reute d f BC-BROOKLYN-UNION-SAYS-A 06-19 0122 NEW YORK, June 19 - Brooklyn Union Gas <BU>, a New York gas utility company, said it will try to limit any rate hikes to customers by arranging alternative supplies to replace the spot natural gas that Transco Energy Co <E> no longer delivers, a company official told Reuters. Edward Sondey, vice president of supply, said that under a grandfather clause Brooklyn Union could request Transco to transmit 165 mln cubic feet (mcf) a day of spot natural gas after purchasing 250 mcf of contract gas from Transco. Brooklyn Union has been taking only 30 pct, or 75 mcf, of the contract gas from Transco, and acquiring about 120 mcf on the spot, or non-contract, market, he said. Lacking access to spot gas through Transco would not cost Brooklyn Union more than 50 cts per mln btu for now, Sondey said, as Transco contract gas costs 2.55 dlrs per mln compared to about two dlrs for spot gas. "The rate increase will not be serious," Sondey said. The contract price at 2.55 dlrs per mln BTU has been effective since May 1 after Transco lowered its commodity rate to reflect seasonal weakness, making it the lowest in the 12 months ended May 31, according to report submitted by Brooklyn Union to New York Public Utility Commission. In peak demand season, Transco's contract gas reached as high as 4.30 to 4.40 dlrs per mln btu, a commission official said. Industry analysts expected little adverse effect from interrupted spot supplies on Brooklyn Union's earnings for its current fiscal year ending September 30. But if the open access problem to Transco is not resolved this winter, high cost of contract gas could cut into the company's profit, they said. Reuter 19-JUN-1987 14:10:58.72 acq usa F f1928 reute r f BC-KING-WORLD-<KWP>-HAS 06-19 0108 NEW YORK, June 19 - King World Productions Inc said it will finance the repurchase of up to 7,600,000 of its shares announced earlier today through cash on hand and about 200 mln dlrs of bank borrowings, for which it has received commitments from First Chicago Corp <FNB> and Bank of New York <BK>. The company today started a tender offer for up to 4,100,000 shares at 28 dlrs each and agreed to buy up to 3,485,085 more shares from members of the King family and management, who together own a total of 13.9 mln shares. All the shares being repurchased amount to about 25 pct of King World's stock. Reuter 19-JUN-1987 14:11:38.17 usa A f1933 reute d f BC-BEST-BUY-<BBUY.O>-FIL 06-19 0074 MINNEAPOLIS, June 19 - Best Buy Co Inc said it filed a registration statement with the Securities and Exchange Commission for a proposed offering of 30 mln dlrs of subordinated extendable notes. Underwriters are led by Piper, Jaffray and Hopwood Inc. Financing is expected to be completed within 30 days, the company said. Proceeds will be used to fund the company's planned expansion. Reuter 19-JUN-1987 14:13:31.47 usa F RM A f1938 reute b f BC-/CONT'L-ILLINOIS-WON' 06-19 0110 NEW YORK, June 19 - A spokesman for Continental Illinois Corp said the bank will not comment on rumors that it will soon add to reserves to cover possible losses on loans to developing countries. Rumors circulated on Wall Street today that Continental would soon join the long list of banks adding to reserves. Some analysts speculated that a decision would be announced after Continental's regularly scheduled board meeting, which will be held Monday. "Our board meets on the fourth Monday of every month, but their agenda is confidential," the spokesman said. He said "we will not comment on any rumors." Reuter 19-JUN-1987 14:14:48.13 usa F f1939 reute r f BC-MANUFACTURERS-NAT'L-< 06-19 0101 DETROIT, June 19 - Manufacturers National Corp said it will add 30.4 mln dlrs to its reserve to cover exposure for Latin American loans. It said the added reserves are expected to result in a second-quarter loss of about 10 mln dlrs for the corporation. Of the 30.4 mln dlr provision, 20 mln dlrs is in general loan loss reserves for the main bank of the holding company, Manufacturers National Bank of Detroit, and 10.4 mln dlrs is a writedown of the investment in two nonconsolidated affiliates. It said it still expects to be profitable for the year. Reuter 19-JUN-1987 14:14:50.95 usa F f1940 reute s f BC-FEDERAL-SIGNAL-CORP-< 06-19 0026 OAK BROOK, Ill., June 19 - Qtly div 20 cts vs 20 cts prior Pay September three Record August 17 Reuter 19-JUN-1987 14:14:57.97 usa F f1941 reute s f BC-MAY-DEPARTMENT-STORES 06-19 0027 ST LOUIS, Mo., June 19 - Qtly div 28-1/2 cts vs 28-1/2 cts prior Pay September 15 Record September one Reuter 19-JUN-1987 14:16:14.36 usa F f1944 reute r f BC-ROCKWELL-<ROK>-BUYS-S 06-19 0067 WALTHAM, Mass, June 19 - Rockwell International purchased SofTech Inc's newest line of Ada-86 tools to use in building a digital autopilot for the anti-tank missle, Hellfire, SofTech said. SofTech said the contract, which was awarded to Rockwell's Duluth Ga. division, will involve more than 10 man years of programming for each digital autopilot. Reuter 19-JUN-1987 14:18:17.71 acq usacanada F Y f1950 reute u f BC-MURPHY-OIL-<MUR>-TO-A 06-19 0089 EL DORADO, ARK., June 19 - Murphy Oil Corp said its board proposed a reorganization in which it would acquire the 23 pct of common shares of its Canadian subsidiary not owned by the parent. Under the proposal, which would be undertaken as a court-approved plan of arrangement, shareholders of Murphy Oil Co Ltd of Calgary, Alberta, Canada, would be offered the option to receive 31 dlrs (Canadian) a share cash or the equivalent market value of common shares of the parent company. Reuter 19-JUN-1987 14:18:34.08 usa F f1951 reute u f BC-GYNEX-<GYNXU.O>-IN-DE 06-19 0066 DEERFIELD, ILL., June 19 - Gynex Laboratories Inc said it signed an agreement under which Warner-Lambert Co's Chilcott Laboratories division will market Gynex's line of generic oral contraceptives. Gynex Labs is a 50/50 joint venture owned by Gynex and Watson Laboratories Inc, a privately-held pharmaceutical company bnased on Corona, California. Marketing by Warner Chilcott is currently scheduled to begin during the third quarter of 1987, it said. Gynex signed a similar marketing agreement with Monsanto Co's <MTC> G.D. Searle and Co subsidiary in February 1986, which was terminated last April following a recall of the oral contraceptives due to packaging problems. Reuter 19-JUN-1987 14:20:56.97 acq usa F f1954 reute d f BC-RB 06-19 0073 WASHINGTON, June 19 - Jeffrey Neuman, of Santa Monica, Calif., told the Securities and Exchange Commission he sold his entire RB Industries Inc stake of 341,210 shares, or 10.0 pct, of the total outstanding. Neuman, who transferred the stock nearly two years ago to the Tudor Trust, of which he is trustee, said the trust sold the entire stake in a private deal on June 9 at 11.00 dlrs a share. Reuter 19-JUN-1987 14:21:02.68 acq usa F f1955 reute d f BC-FORTUNE-FIN'L-<FORF.O 06-19 0079 SUNRISE, FLA, June 19 - Fortune Financial Group Inc said its Fortune Savings Bank acquired a Financial Security Savings and Loan Association branch in Sunrise, Fla. Terms were not disclosed. The new Fortune Savings Bank office had about 40 mln dlrs in deposits as of June 5. Meanwhile, acquisition of Marine Savings and Loan Association of Florida, with four offices in Naples, Fla, is awaiting regulatory approval. Reuter 19-JUN-1987 14:21:57.84 usa F f1958 reute r f BC-COCA-COLA-ENTERPRISES 06-19 0062 ATLANTA, June 19 - Coca-Cola Enterprises Inc said Don Ulrich will be resigning as president of its Northeast Group to pursue other business interests. The company said Jim Stevens, who is also a Coca-Cola Enterprises vice president and president of its Mid-Atlantic Coca-Cola Bottling Co affiliate, will succeed Ulrich. Reuter 19-JUN-1987 14:23:30.08 usa F f1961 reute r f BC-BALLY-<BLY>-FILES-SHE 06-19 0087 CHICAGO, June 19 - Bally Manufacturing Corp said it filed a shelf registration with the Securities and Exchange Commission for a secondary public offering of two mln shares of Series D convertible exchangeable preferred stock. The stock is exchangeable at Bally's option into the company's convertible debentures due February one 2007 and is convertible at the holder's option into shares of Bally common. The preferred stock carry a liquidation value of 50 dlrs a share. All of the shares are being offered by holders of Bally who bought the preferred stock in a private placement in February 1987. Bally will not receive any proceeds of the offering, it said. Reuter 19-JUN-1987 14:23:54.21 usa F f1964 reute r f BC-MARS-GRAPHIC-<WMD>-SE 06-19 0050 WESTVILLE, N.J., June 19 - Mars Graphic Services Inc said it expects sales for the second quarter ending August 31 to exceed year ago sales of 3.7 mln dlrs for the same period. In the year-ago quarter the company earned 191,000 dlrs or 18 cts a share. Reuter 19-JUN-1987 14:24:22.49 usa V RM f1966 reute b f BC-/U.S.-BUDGET-DEFICIT 06-19 0099 WASHINGTON, June 19 - The U.S. budget was in deficit 35.74 billion dlrs in May, compared with a deficit of 39.40 billion dlrs in May 1986, the Treasury Department said. Last month's deficit followed an April surplus of 38.66 billion dlrs. For the fiscal year to date, the budget was in deficit 119.02 billion dlrs compared with a deficit of 165.81 billion dlrs in the previous fiscal year. Outlays last month were 83.44 billion dlrs, down from 85.64 billion dlrs in May a year ago and 84.24 billion dlrs in April, the department said. Receipts were 47.69 billion dlrs in May, up from 46.25 billion dlrs in May a year ago but down from 122.90 billion dlrs in April, the Treasury said. The bulge in receipts in April which resulted in the surplus that month was the result of 1986 income tax payments by individuals. Reuter 19-JUN-1987 14:27:09.30 usa A RM f1975 reute r f BC-DIGICON-OFFERS-NEW-DE 06-19 0108 NEW YORK, June 19 - Digicon Inc said it is offering to exchange about 55 mln dlrs of outstanding subordinated debentures for a package of new issues. The outstanding debenture issues include 12-7/8 pct senior subordinated notes, 10-1/2 pct convertible subordinated debentures and 8-1/2 pct convertible subordinated debentures of the unit Digicon Finance NV. The new securities to be issued in the exchange offer will be about 8.5 mln dlrs of 12 pct senior subordinated notes due 1994, 23.5 mln dlrs of 9.35 pct convertible subordinated debentures due 1997 and 16.5 mln shares of common stock. Reuter 19-JUN-1987 14:31:10.00 usa F f1982 reute u f BC-TRANSAMERICAN-<TA>-GE 06-19 0090 HOUSTON, June 19 - TransAmerican Natural Gas said it received approval from a U.S. District Court in Texas allowing the company to solicit creditor acceptance of its negotiated Chapter 11 plan of reorganization. The company said the approval authorized the company to distribute the disclosure statement to its creditors and solicit creditors' acceptance of the plan. TransAmerican said the confirmation hearing is scheduled for August 17 in U.S. Southern District of Texas court. Reuter 19-JUN-1987 14:31:49.47 acq usa F f1984 reute u f BC-AMERICAN-PHYSICIANS 06-19 0111 WASHINGTON, June 19 - A group led by Far Hills, N.J., investors Natalie and Paul Koether told the Securities and Exchange Commission it has acquired 299,523 shares of American Physicians Service Group Inc, or 5.1 pct of the total. The Koether group said it bought the stock for 1.0 mln dlrs for "capital appreciation" and may buy more. The group also said Paul Koether met on June 8 with management representatives for talks that included the company's business, potential acquisitions for the company, possible opportunities to expand the company and the possibility of Koether being named to its board. The group did not say whether the talks resulted in any agreements. As they have done in several SEC filings concerning other companies in which they have had a stake, the Koethers said they reserve the right "to take any actions which they deem appropriate to maximize the value of the shares," but said they have no current plans about taking any action. While they may buy more American Physicians shares, the Koethers also said they may decide to sell some or all of the their stake in the company. Reuter 19-JUN-1987 14:33:29.56 acq F f1993 reute b f BC-BARCO-DIRECTORS 06-19 0011 ****** 19-JUN-1987 14:34:02.92 uk RM A f1997 reute r f BC-LLOYDS-BOND-MARKET-WI 06-19 0111 By Marguerite Nugent, Reuters LONDON, June 19 - Lloyds Bank Plc's <LLOY.L> decision to withdraw from making markets in Eurobonds and U.K. Government bonds (gilts) sent shivers down the spines of other market participants but was viewed as prudent by banking analysts. "It (the move) really isn't a surprise. They lost a lot of money in the early stages of the gilt market and now they want to cut their losses while they can," said Keith Brown, banking analyst at Greenwell Montagu. "The question now is how many other gilt market makers will face a similar fate," one senior gilt market maker said. Eurobond market participants were equally stunned. "They are the first firm of that size I can remember to have pulled out of eurobond market making altogether," said a member of the Association of International Bond Dealers London staff. Other Eurobond market participants said that while Lloyds had frequently changed the staff of some of its eurobond operations, it was hard to believe they were in trouble. With this action Lloyds, the third largest U.K. clearing bank, becomes the first U.K. clearing bank to withdraw from the gilt market following the Big Bang deregulation of the London Stock Exchange in October. Earlier this year Midland Bank Plc <MDBL.L>, the fourth largest clearing bank, opted out of making markets in equities on the grounds that the return did not justify the expense. It continues as a market maker in gilts, however. In a prepared statement, Lloyds Bank chief executive Brian Pitman said the bank had a "relatively small position in these two overcrowded markets and we have decided to reallocate the resources to opportunities which promise a better return on our shareholders investment." Lloyds said it would maintain its presence in short-term securities trading, swaps and other treasury products. Alan Moore, Lloyds Treasurer, told Reuters that the decision was forward looking and followed a "strategic review" of the prospects for Lloyds in these markets. "We decided the return just was not attractive," he said. Although the decision was made at a meeting of Lloyds board this morning, Moore said that it had been under consideration for some time. He denied that the move was a "reaction to events in the trading room" although he acknowledged that the bank's gilt operations were not profitable in the early stages of the new market. Greenwell's Brown noted that for all of 1986, Lloyds Merchant Bank sustained a loss of 28 mln stg, most of which he said were accounted for by the Eurobond and gilt operations. For all of 1986, Lloyds reported a pre-tax profit of 700 mln stg. "Lloyds is so big, it can easily absorb these losses," Brown said, noting that they are minuscule when compared with the bank's exposure to Latin America. U.K. Clearing banks have come under pressure to increase their provisions against bad loans to third world countries since Citibank announced plans to add three billion dlrs to its provisions in mid-May. National Westminster Bank Plc <NWBL.L>, the largest of the clearers, became the first of the U.K. Clearers to follow Citicorp's <CCI> move earlier this week when it said it was adding some 466 mln stg to its sovereign debt provisions. Lloyds has the second largest exposure to Latin America after Midland Bank, the smallest of the four clearers. Lloyds has said it is reviewing the situation and Moore denied that today's action had any connection. "It is totally unrelated," he said. Trading in Eurobonds and gilts had ended by the time the announcement was made. But market participants were dumbfounded. "We only heard the news about 20 minutes before the announcement. I had no idea it was coming. I don't know if I still have job," said one trader at Lloyds who declined to be identified. Lloyds' Moore said that the bank would do all it could to redeploy the staff affected by the decision in other parts of the bank. But even though Lloyds' share of these markets was relatively small, other market participants, particularly in gilts, were unnerved. One senior gilt market maker noted that the news comes during a period when both gilt and Eurosterling markets have been battered by the lack of investor participation, following the June 11 U.K. general election. Most firms had held long positions on expectations that a return of the ruling Conservative party would prompt heavy demand. These expectations have failed to be met and both markets have sustained sizeable losses since the election. Lloyds has long been the subject of rumors that it was experiencing problems with its gilt operations and officials have never denied that the early stages were unprofitable. Gilt market sources suggested that one of the problems facing Lloyds on the gilt side was its decision to build up its own team. It was the only clearer which did not purchase a broker or a jobber (middle man) in the run-up to Big Bang. Under the old system, these functions have been conducted separately but now market makers perform both tasks. But even long before Big Bang, market makers had expressed doubts that the gilt market would be large enough to sustain 27 market makers, even if turnover increased substantially. And with Lloyds withdrawal, many market makers believe that some of the remaining 26 may opt to bow out gracefully. Reuter 19-JUN-1987 14:39:40.14 F f2010 reute f f BC-REED'S-CHAIRMAN-DENIE 06-19 0006 ****** 19-JUN-1987 14:40:38.40 usa F f2012 reute r f AM-INSIDER 06-19 0102 WASHINGTON, June 19 - The Securities and Exchange Commission said it supported legislation to define insider trading and would recommend language for such a definition within six weeks. Acting SEC chairman Charles Cox told the Senate Banking Committee a bill proposed this week to define insider trading as the wrongful use of material nonpublic information was good but contained some ambiguous provisions which might reduce the Commission's flexibility in prosecuting cases. "The Commission believes a definition of insider trading is desirable," Cox said. He promised to provide the SEC's recommended definition to the committee by August 3. The bill proposed by Sens. Donald Riegle, a Michigan Democrat, and Alfonse D'Amato, a New York Republican, would make it illegal for anyone to receive or pass on inside information even if the person providing the information did not use it to make a securities transaction. Federal law enforcement officials have said a definition of insider trading would be useful because it is a difficult crime to prove. Cox said the SEC was having success in its insider trading cases despite the lack of a clear definition. He became acting chairman of the agency when chairman John Shad left to become U.S. Ambassador to the Netherlands. President Reagan nominated Northwestern University law professor David Ruder as SEC chairman on Wednesday, but he may not be confirmed by the Senate for several weeks. Riegle, the chairman of the Senate securities subcommittee, said he wanted to act on the legislation this year, but Thomas Moore, a member of the President's Council of Economic Advisors, said action should be delayed until the Supreme Court ruled on the appearl of an insider trading conviction by former Wall Street Journal reporter R. Foster Winans. Winans was convicted for telling a friend in advance what stocks he was going to write about in his column. The stocks usually went up or down in price depending on Winans' recommendation. "We believe it would be better to wait until the Supreme Court has reviewed the Winans case before any leigilation is considered. After the court decides this case we can better consider how the law might be changed. Until that time, legislation is premature," Moore said in his testimony. Reuter 19-JUN-1987 14:41:59.20 acq F f2019 reute f f BC-IRWIN-JACOBS-SA 06-19 0010 ****** 19-JUN-1987 14:43:34.45 earn usa F f2023 reute r f BC-COSTCO-WHOLESALE-<COS 06-19 0048 SEATTLE, June 19 - Oper shr two cts vs three cts Oper net 529,000 vs 579,000 Sales 322.0 mln vs 173.8 mln Nine mths Oper shr six cts vs eight cts Oper net 1,619,000 vs 1,700,000 Sales 875.1 mln vs 482.3 mln Note: oper data does not include extraordinary gains from tax loss carryforwards of 291,000 dlrs, or one ct per shr, vs 316,000 dlrs, or one ct per shr in qtr and 890,000 dlrs, or four cts per shr vs 992,000 dlrs, or four cts per shr in nine mths. Reuter 19-JUN-1987 14:44:27.78 cocoa icco C T f2025 reute f f BC-ICCO-buffer-sto 06-19 0014 ****** 19-JUN-1987 14:46:00.83 acq usa F f2029 reute u f BC-SITHE-TO-RAISE-ENERGY 06-19 0043 SAN DIEGO, June 19 - Sithe-Energies LP said it has signed an agreement under which it will increase its interest in Energy Factors Inc to 70.0 pct from 53.4 pct now by investing 100 mln dlrs in Energy Factors stock. Reuter 19-JUN-1987 14:47:56.86 acq usa F f2038 reute u f BC-BARCO-<BRC>-BOARD-APP 06-19 0091 GARDENA, Calif., June 19 - Bacro of California said its board approved an offer from its chairman Kenneth Donner and President Michael Donner to purchase all the outstanding Barco common shares at 5.05 dlrs per share in a leveraged transaction. The Donners currently own about 44 pct of the company's outstanding shares, Barco said. It also said vice chairman David Grutman and family members, who own about 28 pct of Barco's shares, have agreed to sell their stock for the offering price. Reuter 19-JUN-1987 14:48:50.99 usa F f2042 reute r f BC-BRAINTREE-SAVINGS-<BT 06-19 0060 BRAINTREE, Mass., June 19 - Braintree Savings Bank said Winthrop Sargent IV has been named president and chief executive officer, succeeding Lindsay L. Tait, who remains chairman. It said Sargent, who was senior vice president, has also been named to the board. It said Tait intends to retire in about four years. Reuter 19-JUN-1987 14:49:09.08 usa E F f2044 reute r f BC-stelco 06-19 0114 TORONTO, June 19 - Stelco Inc said it formed a 15 mln U.S. dlr joint venture with Northern Automatic Electric Foundry, a wholly owned unit of Armco Inc, to produce cast grinding media and mill lines for the mining industry worldwide. The venture will operate M E International, a new company based in Minneapolis, Minn., pooling the assets of a Northern Automatic grinding media foundry in Ishpeming, Mich., Evans Duluth Steel Castings Co in Duluth, Minn., and Minneapolis Electric Steel Castings Co in Minneapolis. Armco and Stelco operate another joint venture which produces forged grinding media at Kamloops, British Columbia. Reuter 19-JUN-1987 14:50:07.62 usa F f2045 reute d f BC-GEMCRAFT-<GEMH.O>-TO 06-19 0085 HOUSTON, June 19 - Gemcraft Inc told shareholders at the annual meeting that the company and its principal shareholders will repurchase about 130,000 shares of its common stock. The company's portion of the repurchase obligation equals about 800,000 dlrs, which the company said it plans to record as a capital transaction in 1987. Originally, Gemcraft said it estimated that it could be required to buy as many as 300,000 shares for about 3.0 mln dlrs. Gemcraft originally estimated its portion of trading losses could total as much as 600,000 dlrs and recorded a charge to earnings in that amount in the 1986 fourth quarter. The company said it plans to provide an after-tax credit to income of about 200,000 dlrs in the second quarter of 1987 to reflect this difference. Gemcraft also told shareholders it sees a profitable 1987 second quarter. In the year-ago period, it reported earnings of 908,000 dlrs, or 6 cts a share on sales of 88.8 mln. Reuter 19-JUN-1987 14:50:19.00 acq usa F f2046 reute b f BC-/IRWIN-JACOBS-HAS-GIL 06-19 0090 New York, June 19 - Investor Irwin Jacobs said he has an investment in Gillette Co amounting to less than five pct of the consumer products company's stock. Jacobs, who made his comment in response to an enquiry, did not comment further. Yesterday, Gillette rebuffed a takeover proposal from Revlon Inc. Under an agreement between the two companies, Revlon must have the permission of Gillette's board before making an offer to shareholders. The board declined to grant that permission. Gillette has been the topic of takeover speculation for several weeks. Its stock has traded heavily, and arbitragers said they believe Jacobs may not be the only investor who has a sizeable position in the company. Reuter 19-JUN-1987 14:50:57.73 earn usa F f2049 reute d f BC-RAPITECH-SYSTEMS-INC 06-19 0046 SUFFERN, N.Y., June 19 - April 30 end Shr losses not given Net loss 449,000 vs loss 155,000 Revs 84,000 vs 52,000 Nine mths Shr losses not given Net loss 810,000 vs loss 394,000 Revs 173,000 vs 144,000 Reuter 19-JUN-1987 14:52:00.43 usa F f2052 reute d f BC-RAPITECH-<RPSY.O>-IN 06-19 0110 SUFFERN, N.Y., June 19 - Rapitech Systems Inc said it has entered into an agreement under which its FORTRIX-C software is available to Hewlett-Packard Co's salesforce for assisting customers the migration of applications software from one operating environment to another. The company also said FORTRIX-C has been selected by American Telephone and Telegraph Co <T> for use in its Vendor Involvement Program. It said it cannot forecast the impact on its profits because neither agreement contains purchase requirements. It said it expects continued losses through the rest of fiscal 1987 ending July 31. The company lost 548,000 dlrs last year. Today it reported a nine month loss of 810,000 dlrs compared with a 394,000 dlr loss a year earlier and attributed the poorer performance to substantially increased marketing, sales and research expenditures partly resulting from the hiring of additional staff. Rapitech further said it has signed agreements for Computer Systems and Consultants BV of the Netherlands and Sages Group of France to represent the Rapitech Conversionware product line in the Benelux countries, in France and in French-speaking cantons of Switzerland. Reuter 19-JUN-1987 14:52:57.59 tinveg-oilpalm-oilalum belgiummalaysia ec C G M T f2054 reute d f BC-/MALAYSIA-TO-RESEARCH 06-19 0136 By Gerrard Raven, Reuters BRUSSELS, June 19 - Malaysia is to urge fellow tin producing countries to contribute more money towards research into new uses for the metal, Malaysian primary industries minister Lim Keng Yaik told Reuters in an interview. Lim, in Brussels on a tour of Europe and America, said he had instructed Malaysia's representatives on the executive committee of the Association of Tin Producing Countries, ATPC, to draw up a paper on the matter. Lim earlier met European Community farm commissioner Frans Andriessen and industry commissioner Karl-Heinz Narjes. He said though it now appeared likely Commission proposals for a tax on vegetable and marine oils and fats would be defeated, he feared the Commission would revive the idea. Lim noted Andriessen this week promised that if the tax was adopted and third countries suffered export losses as a result, they would be compensated through access to the EC for alternative exports. "Since most of our products are commodity based, I cannot see how this would work out in our case," Lim said. Malaysian palm oil exports to the EC are worth about 250 mln dlrs a year. The tin research proposal would be presented at an ATPC meeting to be held in Kuala Lumpur in September. "Not enough research and development effort has been put in by tin producers and we have been pushed out by substitutes such as aluminium, paper and plastics," Lim said. He mentioned the use of inorganic tin in pesticides as an exciting possible new application. Lim said he could not estimate the amount of extra money which needed to be spent on research into new uses before the new paper was produced. He said Narjes told him there appeared no fundamental barriers to EC states quickly ratifying the new International Rubber Agreement, INRA, although translations of the accord into some EC languages are still being awaited. Lim, who will sign and ratify the agreement on Malaysia's behalf when he visits New York during his current tour, said it was important there should not be a long "interregnum" between the old agreement lapsing in October and the new one coming into force. He described the present accord as a model for commodity agreements due to its being signed by nearly all producing and consuming countries and by virtue of its review systems and control over buffer stock management. Reuter 19-JUN-1987 14:54:11.82 acq usa F f2057 reute u f BC-VR-<VRBB.O>-CLOSES-ST 06-19 0104 BOSTON, Mass., June 19 - VR Business Brokers Inc said it closed the sale of a controlling interest in its comon and preferred stock to VR Acquisition Corp, a Delaware corporation controlled by an investment group led by C. Robin Relph of London. Under the agreement dated April 28, VR Business agreed to sell 5,008,120 shares of common stock and 11,846 shares of 10 pct cumulative stock. VR Business said it issued 3,964,000 shares of common stock and 11,846 shares of preferred stock, with the remaining shares of common to be listed within the next week to 10 days. Reuter 19-JUN-1987 14:55:32.53 acq usa F f2061 reute d f BC-MICROWAVE-LABORATORIE 06-19 0057 RALEIGH, N.C., June 19 - April 30 end Shr 12 cts vs eight cts Net 316,655 vs 148,567 Sales 2,011,195 vs 1,422,719 Avg shrs 2,738,864 vs 1,881,296 Year Shr 43 cts vs 49 cts Net 1,006,356 vs 918,290 Sales 7,059,446 vs 5,441,408 Avg shrs 2,329,329 vs 1,881,296 Reuter 19-JUN-1987 14:56:07.28 usa F f2063 reute h f BC-FREEPORT-MCMORAN-OIL 06-19 0036 HOUSTON, June 19 - Monthly div 11.244 cts vs 10.309 cts prior Pay July 10 Record June 30 NOTE: Full name is Freeport-McMoRan Oil and Gas Royalty Trust Reuter 19-JUN-1987 14:57:21.53 lumber usauganda A RM f2066 reute d f BC-WORLD-BANK-LOANS-UGAN 06-19 0098 WASHINGTON, June 19 - The World Bank said it has loaned Uganda 13 mln dlrs through the International Development Association (IDA), the bank's concessionary lending affiliate. The IDA loan will support a project that hopes to preserve the country's natural forests and meet its demand for wood products by rehabilitating Uganda's forestry management agency, the bank said. It also said the project plans to increase the area and management of protected forests, establish pilot wood farms and nurseries, and rehabilitate soft wood plantations. Reuter 19-JUN-1987 14:57:41.40 usacanada F f2068 reute d f BC-LIPOSOME-<LIPO.O>-FOR 06-19 0090 PRINCETON, N.J., June 19 - Liposome Co Inc at its annual meeting announced the formation of a Canadian subsidiary, Canadian Liposome Co Ltd. It said the company cements a relationship with University of British Columbia researcher Pieter Cullis and his scientific group who are developing anti-cancer products for Liposome. The company also said lead bankers completed Liposome's stock offering of one mln shares on June 11 at 6.875 dlrs a share. Liposome said it netted 7,388,750 dlrs. Reuter 19-JUN-1987 15:01:02.87 sugar ukchinausamexicothailanddominican-republic C T f2085 reute u f BC-FAIRLY-HECTIC-WEEK-IN 06-19 0106 LONDON, June 19 - It has been a fairly hectic trading week in raw sugar with China paying market levels for nearby shipments, London trader, Woodhouse, Drake and Carey, said in its weekly report. July shipment Thai raws traded to China early in the week at fob levels equivalent to 20/25 points discount to July New York futures, it said. Mid-week saw these same sales covered by the trade at 10/15 points discount. Enquiries for July/Sep 15 raw sugars then filtered in and here again, traded values rose quickly from 13 points premium to New York July up to 18, Woodhouse said. In the Western Hemisphere, both Dominican Republic and Mexican nearby raws were bid 15 points discount to July New York and offered five points under, but in limited trading, it said. All the action of the past week has been in the Far East raws market whereas the whites market saw little fresh prospect of nearby offtake, Whitehouse added. Reuter 19-JUN-1987 15:01:35.39 earn usa F f2089 reute h f BC-PASSPORT-TRAVEL-INC-< 06-19 0051 OVERLAND PARK, Kan., June 19 - Shr profit six cts vs loss one ct Net profit 80,939 vs loss 12,808 Rev 7.0 mln vs 6.3 mln Six months Shr profit eight cts vs loss one ct Net profit 101,345 vs loss 10,460 Rev 13.2 mln vs 12.5 mln Reuter 19-JUN-1987 15:01:58.11 earn usa F f2091 reute d f BC-SAVOY-INDUSTRIES-INC 06-19 0055 NEW YORK, Juen 19 - Oper shr loss 32 cts vs loss 17 cts Oper net loss 2,999,000 vs loss 1,692,000 Sales 10.3 mln vs 11.5 mln Avg shrs 9,517,000 vs 9,905,000 NOTE: 1986 Operating loss excludes profit of 3,688,000 dlrs, or 37 cts a share, from discontinued operations Reuter 19-JUN-1987 15:07:14.00 usa F f2111 reute s f BC-ENTEX-ENERGY-DEVELOPM 06-19 0024 HOUSTON, June 19 - Qtly div 15 cts vs 15 cts prior Payable August 31 Record June 30 Reuter 19-JUN-1987 15:08:14.55 trade usajapantaiwansouth-koreamexicovenezuelabrazil A RM f2113 reute d f AM-TRADE-LATAM 06-19 0114 WASHINGTON, June 19 - A group of Latin American and Caribbean nations formally opposed trade legislation pending in Congress, saying it would curb their exports, slow development and hinder its ability to repay foreign debt. Mario Rodriguez Montero, president of an Organization of American States special committee on trade, said he was aware of the large U.S. trade deficit, but added "the region should not be the one affected by the trade bills." He said the causes of the deficit were the strong dollar and the budget deficit, and "it is regrettable to solve it by a trade bill that would only serve private U.S. interests." Rodriguez made the comment at a news conference after two days of meetings with U.S. officials on trade bills now in Congress that are designed to reduce the U.S. trade deficit, which last year hit a record 166.3 billion dlrs. Congressional observers say the bills are aimed mainly at Japan, Taiwan, South Korea and a few other nations with large, annual trade surpluses with the United States. Mexico, Brazil and Venezuela are the only Latin nations with large trade surpluses last year with the United States, but even Mexico, with the largest, had a surplus of only 5.2 billion dlrs, against Japan's of 58.6 billion dlrs. The European Community has also opposed the bills. Rodriguez said the Latin and Caribbean nations backed the Reagan Administration's opposition to many of the sections in the legislation, including those to curb imports and to require retaliation for foreign unfair trade practices. He told reporters the committee would likely mount a campaign to fight the legislation when it comes up for debate on the Senate floor, expected next week. Rodriguez said "the region needs trade to continue development. We hope this need will not be affected negatively by trade legislation." Rodriguez said: "we need to keep the market opens - especially the U.S. market - to obtain the necessary foreign exchange not only to service the debt but also to continue national development progress." President Reagan has said he would veto any legislation he termed "protectionist," and his aides now are mounting a effort to water down some of the objectionable provisions in the legislation. Asked whether Reagan was ready to cast a veto, Rodriguez said as yet "the administration is not in a veto frame of mind." reuter 19-JUN-1987 15:13:11.91 acq uk F f2126 reute u f BC-REED-DENIES-BID-APPRO 06-19 0110 LONDON, June 19 - Reed International Plc <REED.L> denied rumours on the U.K. Stock market that it was the target of a takeover bid and said it had received no approach. "In view of the increase in our share price today, I want to make clear that we have not received any bid approaches," Reed's chairman Leslie Carpenter said in a statement. Rumours that U.S. Publisher Harcourt Brace Jovanovich Inc <HBJ> might bid for Reed, a paper and printing company, pushed Reed shares up 54p at 600p at one stage today before they eased back to 564p at the close against a background of a widespread decline in U.K. Equity prices. Share market analysts said speculators were buying the stock on belief that Harcourt would bid for Reed in an effort to escape the unwelcome two billion dlr bid from Robert Maxwell's British Printing and Communication Corp <BPCL.L>. Such a move would have made Harcourt too big for BPCC to take it over, analysts added. They also said there was some speculation that if BPCC's bid for Harcourt was unsuccessful, it could turn its attention to Reed. Reuter 19-JUN-1987 15:14:38.69 acq usa F f2128 reute d f BC-APPLIED-DATA-<ADCC.O> 06-19 0062 TUSTIN, Calif., June 19 - Applied Data Communications said it agreed to acquire privately-held Dateline Technology Inc of Redmond, Wash., for an undisclosed amount of cash and stock. Dateline Technology designs and sells high-capacity, high-speed computer peripheral subsystems, primarily for data storage, Applied Data said. Reuter 19-JUN-1987 15:17:15.65 acq usa F f2134 reute u f BC-GULF-AND-WESTERN-<GW> 06-19 0094 NEW YORK, June 19 - USA Network, today said it has acquired Time Inc's <TL> one-third interest in the network. The network, formerly a joint venture between Time, Gulf and Western Inc and MCA Inc <MCA>, said that Gulf and Western and MCA, who each previously held a one-third interest, now will jointly own USA Network on a 50/50 basis. Terms were not disclosed, USA Network said. USA Network is an advertiser-supported, entertainment basic cable network, reaching 39 mln homes on 8,500 cable systems. Reuter 19-JUN-1987 15:20:04.09 acq usa F f2145 reute u f BC-TEKTRONIX-<TEK>-BEGIN 06-19 0102 BEAVERTON, Ore., June 19 - Tektronix Inc said it began its previously announced Dutch Auction cash tender offer for up to 10 mln of its own common shares. Under the terms of the offer the company will select a single cash purchase price for the stock, based on the number of shares tendered, not to exceed 40 dlrs per share or be lower than 35 dlrs per share, Tektronix said. The company also said it does not intend to spend more than 380 mln dlrs for the shares tendered. It further stated that the tender offer expires on July eight, unless extended. Reuter 19-JUN-1987 15:23:24.76 usa F f2153 reute r f BC-COASTAL-<CGP>-EXTENDS 06-19 0084 HOUSTON, June 19 - Coastal Corp's Coastal Limited Ventures Inc subsidiary said its offering of 14,000 limited partnership units in the Coastal 1987 Drilling Program Ltd has been extended to July two or until all the units are solf if that occurs earlier. It said about eight mln dlrs in 1,000 dlr units had been sold as of yesterday. The partnership plans to raise 14 mln dlrs from the sale of the units and will borrow four mln dlrs, Coastal said. Reuter 19-JUN-1987 15:25:09.29 acq usa F f2154 reute r f BC-KAY-<KAY>-TO-ACQUIRE 06-19 0081 NEW YORK, June 19 - Kay Corp said its Balfour, Maclaine International Ltd subsidiary signed a letter of intent to acquire certain assets of a privately-owned distributor of specialty fasteners for about 13 mln dlrs plus management incentives, which it did not disclose. Kay said the firm has annual sales of about 15 mln dlrs. Kay also said it is pursuing private placement of debt securities for a number of corporate purposes. Reuter 19-JUN-1987 15:29:46.08 usa F f2163 reute r f BC-LARISSA-INDUSTRIES-FI 06-19 0093 AKRON, Ohio, June 19 - Larissa Industries Inc said it filed with the Securities and Exchange Commission for an initial public offering of two mln shares of common. All of the shares are being sold by Larissa, which makes and markets component assemblies used in automobiles, light trucks, vans, helicopters and other military vehicles and in nucelar reactors for the U.S. Navy submarines and other vessels. The offering will be underwritten by Merrill Lynch Capital Markets and E.F. Hutton and Co Inc. Reuter 19-JUN-1987 15:33:08.79 usawest-germany F f2178 reute r f BC-SUNRISE-MEDICAL-<SNMD 06-19 0102 TORRANCE, Calif., June 19 - Sunrise Medical Inc said it will close three facilities and take a fourth quarter charge of 625,000 dlrs, or 15 cents per share, which will result in a fourth quarter loss. The company said net earnings for the year will be below the 1.8 mln dlrs earned last year. It also noted earnings for the year will be affected by a 13 cent per share operating loss from its Sunrise Medical GmbH unit in West Germany. It said the closures, to be completed by the end of 1987 year, are part of a cost reduction and plant consolidation program. The company said plants to closed are the Trans-Aid factory in Turbotville, Penn., the Minivator factory in Dunstable, England and the Sunrise Medical GmbH distribution facility in Bischofsheim, West Germany. The Turbotville and Dunstable operations will be folded into other Sunrise facilities, while the German distribution business will be turned over to local distributors, the company said. The German operation will be shut down effective June 26. The company said it does not anticipate any non-recurring or extraordinary charges in fiscal 1988. Reuter 19-JUN-1987 15:37:06.51 acq usa F f2187 reute d f BC-NEW-ENGLAND-CRITICAL 06-19 0069 MARLBOROUGH, Mass, June 19 - New England Critical Care Inc said it completed its purchase of NPO Therapies Inc of Salt Lake City. The company said that NPO Therapies' president and founder, Kelly Mutchie, has joined New England Critical Care as regional vice president covering the western United States. NPO Therapies provides home infusion therapy services. Reuter 19-JUN-1987 15:39:03.19 coffee usacolombiabrazil ico-coffee C T f2190 reute u f BC-/COLOMBIA-HELPFUL-BUT 06-19 0114 WASHINGTON, June 19 - A U.S. government trade official responsible for coffee policy said prospects for an accord on coffee quotas are still uncertain despite recent Colombian efforts to bridge differences between producers and consumers. Jon Rosenbaum, an assistant U.S. trade representative just back from trade talks in Colombia, said most producing countries now accept some sort of standardized criteria must be agreed to reintroduce coffee quotas. "There is one country which evidently still does not," Rosenbaum said in an obvious reference to Brazil, which has been negative recently on a reintroduction of quotas. Rosenbaum said because of the stance of Brazil the outlook for an agreement to reintroduce coffee quotas at the September International Coffee Organization meeting is hard to predict. He said that during the visit to Bogota he held technical discussions with Colombian officials. While he did not meet with Jorge Cardenas, head of the Colombian coffee producers federation, who was in Europe, Cardenas left a "positive letter," Rosenbaum said. The Cardenas letter responded to a U.S. letter last month which praised Colombia for trying to find a compromise formula for the reintroduction of quotas, but outlined several concerns with the technical details of the Colombian plan. Rosenbaum could not be reached later in the day for comment on a new formula for calculating ICO quotas agreed to by European coffee roasters and traders. Dutch coffee trade association chairman Frits van Horick said in Amsterdam the new formula is based on six year moving averages and would give Brazil an unchanged export quota for the remaining to years of the current coffee agreement. The U.S. has said it will not agree to any coffee quotas unless "objective criteria" which reflect recent changes in the coffee market are used to set export limits. Reuter 19-JUN-1987 15:39:39.51 ricegrainmeal-feed usael-salvador C G f2191 reute u f BC-CCC-CREDIT-GUARANTEES 06-19 0098 WASHINGTON, June 19 - The Commodity Credit Corporation (CCC) has reallocated 1.3 mln dlrs in credit guarantees originally granted to cover the sale of protein meals to El Salvador so it may buy rice, the U.S. Agriculture Department said. The action reduces the guarantee line authorized for sales of protein meals to 12.7 mln dlrs and creates a rice credit guarantee line of 1.3 mln dlrs, the department said. All sales under the credit guarantee lines must be registered and exports completed by September 30, the department said. Reuter 19-JUN-1987 15:41:10.39 usa F f2195 reute u f BC-JEFFERIES-MAKING-MARK 06-19 0038 LOS ANGELES, June 19 - Jefferies Group Inc said it is making a market in Storage Technology Corp <QSTK.O>. The firm said the first bid was 3-1/2 and the first offer was 3-5/8. Reuter 19-JUN-1987 15:41:33.95 usa A RM f2197 reute r f BC-MOODY'S-AFFIRMS-DELTA 06-19 0106 NEW YORK, June 19 - Moody's Investors Service Inc said it affirmed Delta Air Lines Inc's 977 mln dlrs of debt and upgraded the ratings on Western Air Lines Inc's 216 mln dlrs of debt securities. The agency cited Western Air's merger with Delta and Delta's assumption of Western's debt. The action reflects Delta's continuing strong financial condition, earnings improvement and quality service record. Moody's affirmed Delta's A-3 senior unsecured debt and industrial revenue bonds, and raised Western's senior secured debt to A-3 from Ba-3 and senior unsecured to A-3 from B-1. Reuter 19-JUN-1987 15:41:42.60 usa A RM f2198 reute r f BC-DIAMOND-BATHURST-<DBJ 06-19 0110 NEW YORK, June 19 - Moody's Investors Service Inc said it cut to B-2 from Ba-1 Diamond Bathurst Inc's subordinated notes of 1995. Moody's said it expects the company's operating performance would be hurt by heightened competition and by the increasing inroads being made by other forms of packaging. It said Diamond should benefit from production efficiency, quality control and plant closings. But due to the company's major role in selling to the distilled spirits industry, one of the smaller markets for glass containers, its margins and asset returns may not materially improve, Moody's said. Reuter 19-JUN-1987 15:41:56.11 brazil F f2199 reute d f AM-BRAZIL-MOTOR 06-19 0088 By Stephen Powell, Reuters SAO PAULO, June 19 - Brazil's crisis-ridden motor industry -- which is dominated by the subsidiaries of Volkswagen AG <VOWG.F>, Fiat Spa <FIAT.MI>, General Motor Corp <GM> and Ford Co <F> -- has not made a single domestic sale for the last four days, and several assembly lines will stop shortly, industry spokesmen said. The motor manufacturers have been feeling the pinch for months, with demand slumping as the country heads into recession. But the industry hit a fresh problem when dealers decided on Tuesday to stop buying any cars or trucks to protest high government taxes on vehicles. The dealers' decision was sparked by a 33 pct increase in car prices authorized last week by the government to cover industry's rising costs. Spokesman Marcio Stefani of the Brazilian Association of Autmotive Vehicle Distributors said dealers felt their livelihood was at stake -- cars aren't selling because they cost too much. "It is a question of our survival. The price of cars in Brazil has reached an insupportable level," he said. A GM Opala Diplomata, he said, costs 30,000 dlrs in Brazil, while an equivalent car in the United States would cost about 10,000 dlrs. The National Association of Automotive Vehicle Manufacturers said that if the trade's boycott continues for another week, consequences will be serious. Association spokesman Fred Carvalho told Reuters, "The consequences will first of all be collective holidays then lay-offs and a more and more catastrophic situation." A spokesman for Ford Brasil said it would tell about half of its 21,000 workforce to take holidays June 29-July 13. Fiat announced yesterday that it would give 2,000 workers a month's holiday, from July 6, halting production for the domestic market. Carvalho said the industry was working at 3,500 vehicles a day, below its 1986 average of 4,700 and capacity of 5,100. During last year's Cruzado Plan price freeze, feverish demand far outstripped supply. The industry says it could have sold many more cars than it produced, but was constrained by a lack of parts. Today the picture is completely different after months of raging inflation and demand has all but disappeared. Carvalho said the government taxes on cars added 138 pct to the cost of the vehicle. He described the taxes as "the highest in the universe and the galaxy." Domestic car sales during the first five months of this year slipped to their lowest level for a decade, 241,632 units compared with 382,182 units during the same period last year. On the bright side, exports are booming -- sales abroad in May totalled 242 mln dlrs, a record figure. The motor industry is critical of the government of President Jose Sarney, which has gained a reputation as an indifferent manager of the economy. Last month Volkswagen said it was postponing indefinitely investments of 150 mln dlrs planned for this year. Wolfgang Sauer, president of Volkswagen do Brasil, said the government had created a crisis of confidence. Brazil's motor industry employs more than 150,000 people. Reuter 19-JUN-1987 15:44:27.17 usa A F RM f2206 reute r f BC-U.S.-BROADENS-NATIONA 06-19 0115 WASHINGTON, June 19 - U.S. Comptroller of the Currency Robert Clarke said his office is expanding a plan giving temporarily ailing but well managed national banks extra time to come into compliance with its minimum capital requirements. The policy, which originally was intended to give well run banks in economically depressed areas more time to rebuild depleted capital levels, will be broadened to apply to all national banks, Clarke said in a speech to a financial seminar. A text of his remarks was made public today. The comptroller's office will extend the application deadline for the plan to Dec. 31, 1989 from Dec. 31, 1987. It will extend to 1995 from 1993 the deadline for banks to boost their capital levels to the required minimum level. Finally, it will eliminate a current requirement that a bank have capital of at least four pct to participate in the capital forbearance plan. "In theory, a bank could be allowed to continue to operate with nearly zero capital if we approve its plan to rebuild its capital base," Clarke said, though he added that a bank in that situation would have a have "a virtually ironclad plan for a prompt restoration of capital" to be accepted. The critical linkage to forbearance is that the fundamentals must be in place to assure that the bank can survive: in short, capable management and financial prospects," Clarke said. He said the program will continue to be closed to insolvent banks. Reuter 19-JUN-1987 15:45:23.45 F RM f2211 reute f f BC-AMERICAN-EXPRES 06-19 0011 ****** 19-JUN-1987 15:45:54.56 usa A RM f2214 reute u f BC-CHRYSLER-<C>-AND-FINA 06-19 0092 NEW YORK, June 19 - Standard and Poor's Corp said it affirmed the debt ratings of Chrysler Corp and Chrysler Financial Corp following the automaker's agreement to acquire Electrospace Systems Inc for 367 mln dlrs. It said the acquisition could easily be funded from existing cash balances, still leaving Chrysler with an adequate level of precautionary cash. At March 31 Chrysler had 2.9 billion dlrs of cash and marketable securities, up from 2.7 billion dlrs at year-end 1986, S and P noted. Standard and Poor's affirmed the BBB senior debt of Chrysler and Chrysler Financial. Also affirmed were the finance arm's BBB-minus subordinated debt and A-2 commercial paper. Electrospace makes communications and electronic systems for aerospace applications. Because of the company's relatively small size, the acquisition should have little effect on Chrysler's balance sheet, S and P said. Reuter 19-JUN-1987 15:46:16.89 usa F f2218 reute s f BC-AUTOCLAVE-ENGINEERS-I 06-19 0025 ERIE, Pa., June 19 - Qtly div four cts vs four cts in prior qtr Payable July 15 Record June 30 Reuter 19-JUN-1987 15:46:58.95 crudepet-chempropane usa opec Y f2222 reute u f BC-INTERNATIONAL-LPG-PRI 06-19 0100 NEW YORK, June 19 - International LPG prices were little changed in the past week, barely affected by the excitement on the advent of OPEC's mid-year meeting, traders and industry sources said. "If the OPEC decides to increase crude oil production," a traders said, "LPG supplies will be up without corresponding rise in demand." Petrochemical buyers were sidelined, after their foray in the market early in june, they said. An industry meeting in Dublin this week also drew many market participants away from the trading desk, they added. Algeria has moved at least two cargoes of propane to the U.S. Gulf, keeping Mediterranean prices steady, traders said. In the Mideast Gulf, propane appeared easing slightly, after a major U.S. oil company bought propane on formula which netted back about 123 dlrs, cif Mideast Gulf, which was two dlrs below Saudi Arabia's government selling price (gsp), industry sources said. Delivered propane to Japan was quoted at gsp plus 19 dlrs and butane at gsp plus 25 dlrs, the traders said. Reuter 19-JUN-1987 15:49:27.24 usa reagan V RM f2230 reute u f AM--BUDGET 06-19 0084 By Michael Posner, Reuters WASHINGTON, June 19, - After battling President Reagan all year, Congress is about to pass a trillion dollar 1988 budget that sets the stage for even fiercer fighting over its tax and defence policies. But when the dust settles, congressional budget analysts say, Reagan and the Democratic opposition may finally sit down at a "budget summit" to call a truce and work out a deal over implementing the budget he opposes. "I think he essentially will (negotiate)," said a prominent House leader who did not want to be identified. "The ball is in his court ... We've done everything we could to make a summit." The Democrat budget plan calls for $19 billion in new taxes next year, $64 billion over three years, and is set to be passed by the Democratic-led Congress next week. It would cut next year's deficit by about $37 billion to $134 billion. On Tuesday last week, Reagan said he would consider talks, except on defence or taxes, but three days later argued that Congress would first have to bend even further. Reuter 19-JUN-1987 15:51:05.73 usa F f2235 reute d f BC-KLEINWORT-BENSON-AUST 06-19 0037 NEW YORK, June 19 - Kleinwort Benson Australian Income Fund Inc Qtly div from investment income 30 cts vs 36.5 cts in prior qtr Payable July 17 Record July one Reuter 19-JUN-1987 15:54:21.40 usa F f2240 reute s f BC-HOSPITAL-CORP-OF-AMER 06-19 0025 NASHVILLE, Tenn., June 19 - Qtly div 18 cts vs 18 cts prior Pay August seven Record July three Reuter 19-JUN-1987 15:56:22.22 brazilusa F A f2242 reute d f AM-KISSINGER 06-19 0112 RIO DE JANEIRO, June 19 - Former U.S. Secretary of State Henry Kissinger said the U.S. Government is disregarding the future of its economy and could within three to five years "find itself on a situation similar to those of indebted Latin American countries." "The United States will not be able to service its debt without austerity," he told a news conference. The former secretary also criticised his country's foreign policy. "We have so many problems of our own at home that we should not be sending people like me and many others around the world to tell other countries how to handle their problems." Kissinger came to Brazil on a private visit to make the opening speech at the Sixth World Congress of the International Federation of Purchasing and Materials Management, to be held here June 24 through 26. During his visit he is to call on President Jose Sarney, Foreign Minister Roberto Abreu Sodre, Finance Minister Luiz Carlos Bresser Pereira and Chamber of Deputies chairman Ulysses Guimaraes, Monday in Brasilia. Asked to comment on the economic measures imposed by the Brazilian government last week, which included a new price freeze up to 90 days, Kissinger said: "I have only read a summary of the plan. In principle, it seems like a reasonable plan which could succeed and lead to an agreement with the International Monetary Fund." Reuter 19-JUN-1987 15:57:58.16 usa F f2245 reute r f BC-UNISYS-<UIS>-IN-MARKE 06-19 0051 BLUE BELL, Pa., June 19 - Unisys Corp said its Value Added Marketing organization signed an agreement with privately held VMark Computer Inc for remarketing of the Unisys 5000 and 7000 series of minicomputers with VMark software. Terms were not disclosed. Reuter 19-JUN-1987 15:59:39.20 shipcrude usakuwaitsaudi-arabia Y RM A f2251 reute r f AM-GULF-AMERICAN 06-19 0113 WASHINGTON, June 19 - The United States said Kuwait was discussing plans to lease privately-owned U.S. tankers to transport oil through the Gulf in addition to putting some of its own vessels under American flags. State Department spokeswoman Phyllis Oakley, who made the disclosure about the tankers, also told reporters the United States expects to conclude very soon a favorable arrangement with Saudi Arabia concerning expanded security cooperation in the Gulf. The two developments occur as the Reagan administration continued to come under fire in Congress for its plans to bring 11 Kuwaiti tankers under American flags. The move is designed to protect the tankers from Iranian attacks and ensure freedom of navigation in the strategic waterway but has raised fears on Capitol Hill that it will draw the United States into the seven-year-old Iran-Iraq War. "The Kuwaitis have discussed the possibility of chartering U.S. flag vessels with the Maritime Administration," Oakley said. She emphasized, however, that "if some charter arrangement could be worked out, it would not supplant the reflagging arrangement that we worked out with the Kuwaitis." In both cases, the ships would be eligible for U.S. Navy escort in the Gulf, she said. The Washington Post today quoted John Gaughan, administrator of the Martime Administration, as saying Kuwait has approached an American shipping company about the possibility of a charter. Gaughan said that earlier this week he told representatives of the company, whose identify he did not know, that chartered vessels flying the U.S. flag "would be protected," the newspaper reported. Concerning Saudi Arabia, Oakley said "we are moving forward in our talks ... on how we can tailor our efforts and security cooperation to facilitate our Gulf operations." Reuter 19-JUN-1987 16:00:13.98 usa F f2252 reute h f BC-ENVIRONMENTAL-<POWER. 06-19 0048 BOSTON, June 19 - Environmental Power Corp said that Robert W. Baldridge has resigned from its board of directors, effective June 17. Environmental develops, owns and operates small power production, hydropower, and waste-energy plants. Reuter 19-JUN-1987 16:02:01.49 mexico RM A f2257 reute r f BC-MEXICO-REJECTS-CALLS 06-19 0110 MEXICO CITY, June 19 - Senior officials from government and the ruling Revolutionary Institutional Party (PRI) rejected business sector calls this week to reprivatise the 26 Mexican banks, nationalised five years ago. PRI president Jorge de la Vega, speaking in Saltillo, Coahuila state, said the party would never permit reprivatisation "because the banks belong to all Mexicans." Speaking in Hermosillo, Sonora State, Deputy Finance Minister Francisco Suarez Davila said the nationalised banks have proved a positive instrument through which the government has been able to promote economic development. Suarez davila said that in the hands of the state, banks have performed well and that the government will adopt whatever reorganization is needed to improve efficiency. Earlier this week, the newly elected head of the powerful business coordinating council, agustin legorreta, called for the banks to be reprivatized, charging that competition and efficiency had been eroded. Then president jose lopez portillo nationalised the banks in 1982, accusing them of aiding capital flight. Later that year, miguel de la madrid took office and announced a scheme to offer 34 pct of the banks' shares to the public. Reuter 19-JUN-1987 16:03:36.18 acq F f2263 reute b f BC-DAYTON-HUDSON-T 06-19 0014 ****** 19-JUN-1987 16:04:38.50 canada E f2267 reute r f BC-LLOYDS-BANK-CANADA-NA 06-19 0098 TORONTO, June 19 - Lloyds Bank Canada, a unit of Lloyds Bank <LLOY.L> PLC said it appointed David Drake chief executive replacing David Lewis, who will remain as vice-chairman, effective June 30. The bank said that former president David Rattee resigned to pursue other interests. Drake, 45, has served with Lloyds Bank since 1958, and is currently the bank's regional director in Birmingham, England. Lewis was chief executive of the old Continental Bank of Canada, which sold 90 pct of its assets to Lloyds Bank last November. Reuter 19-JUN-1987 16:06:40.01 usa A RM f2273 reute u f BC-S/P-AFFIRMS-AMERICAN 06-19 0103 NEW YORK, June 19 - Standard and Poor's Corp said it affirmed 6.3 billion dlrs of debt of American Express Corp and related entities. Affirmed were American Express' AA senior debt, AA-minus subordinated debt and A-1-plus commercial paper. S and P cited the American Express banking unit's decision to set aside specific reserves for developing country credits. While a 600 mln dlr loan-loss provision will generate a second quarter loss and diminish equity capital, the reduction will be replenished by earnings in the second half of the year, S and P said. Reuter 19-JUN-1987 16:07:41.13 acq usacanada F E f2278 reute d f BC-PACIFIC-BASIN-TO-ACQU 06-19 0106 NEW YORK, June 19 - <Pacific Basin Development Corp>, based in Vancouver, British Columbia, said it reached an agreement to buy 51 pct of T.E.A.M. Pacific Corp and its marketing arm for 4.2 mln U.S. dlrs. Pacific also said it expects ot earn three mln Canadian dlrs for the year ended June 30, 1988 and 10 mln Canadian dlrs for the year ended June 1989. T.E.A.M., a former Signetics Corp unit, assembles integrated circuits in Southeast Asia and is itself buying an assembler. Pacific said T.E.A.M. expects to earn over 80 mln Canadian dlrs per year when the acquisition is completed. Reuter 19-JUN-1987 16:08:20.20 earn usa F f2279 reute h f BC-ANDERSEN-GROUP-INC-<A 06-19 0037 BLOOMFIELD, Conn., June 19 - May 31 Shr loss 13 cts vs loss 4 cts Net loss 225,000 vs loss 80,000 Revs 11.8 mln vs 10.4 mln Avg shrs 1,789,165 vs 1,789,455 Reuter 19-JUN-1987 16:10:48.22 acq usa F f2284 reute u f BC-DAYTON-HUDSON-<DH>-NO 06-19 0066 MINNEAPOLIS, Minn., June 19 - Dayton Hudson Corp, in a letter to employees, said it told an "aggressive buyer" of the company's stock that it does not want to be acquired. A Dayton Hudson spokeswoman would not identify the buyer, but Wall Street sources said Dart Group Corp <DARTA.O> was the company interested in buying Dayton Hudson stock. The Wall Street sources said the Dart Group is expected soon to file a statement with the Securities and Exchange Commission on its accumulation of Dayton Hudson stock. According to the letter to company employess, Dayton Hudson management has moved in two directions to fend off a takeover. According to the letter, chairman Kenneth Macke expressed to the group buying its stock the company's desire to remain independent. Dayton Hudson Thursday night met with Minnesota governor Rudy Perpich, appealing for legislative help. A spokesman for Governor Perpich earlier said the governor is expected later today to recommend stiffening the state's anti-takeover law to help the Minneopolis retailer defend itself. Minnesota House speaker designate said the legislators would probably look at language similar to that contained in Indiana and New York law. He said any amendment proposed would probably be designed to thwart a company from dismantling a company for its own profit. "Obviously Dayton-Hudson people feel whatever statutes we have would not protect them enough," Vanasek said. Reuter 19-JUN-1987 16:11:21.23 acq usa F f2285 reute u f BC-BARNETT-BANKS-<BBF>-F 06-19 0091 JACKSONVILLE, Fla., June 19 - Barnett Banks Inc and Home Federal Bank of Florida said they filed a suit against the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corp. The companies said the suit asks a Jacksonville, Fla., federal district court to enjoin the enforcement of an interpretive rule adopted by the FHLBB last year which seeks to give it jurisdiction over Barnett's proposed acquisition of Home. The suit says this rule is arbitrary and capricious. Reuter 19-JUN-1987 16:11:49.06 usa F f2286 reute d f BC-ENVIRONMENTAL-<POWR.O 06-19 0095 BOSTON, June 19 - Environmental Power Corp said it filed a statement with the Securities and Exchange Commission for the offering of two mln shares of its common. All shares are being sold by the company and Drexel Burnham Lambert Inc is the sole manager of the offering. Environmental said 400,000 dlrs of the net proceeds will be used to pay a portion of the purchase price of the capital stock of <Milesburg Energy Inc> and the remainder to repay up to one mln dlrs in short-term debt and general coporate purposes. Reuter 19-JUN-1987 16:13:41.98 F f2288 reute f f BC-SENIOR-DEFENSE 06-19 0013 ****** 19-JUN-1987 16:14:16.79 usa F f2289 reute u f BC-CHRYSLER-<C>-MOVE-CON 06-19 0097 By Steven Radwell, Reuters NEW YORK, June 19 - Chrysler Corp is taking a small step away from automobiles and towards military contracting with the purchase of Electrospace Systems Inc <ELE>, analysts said. "A chief goal of Chrysler is to gain military business for their Gulfstream planes and this should help that cause dramatically," said analyst Gary Glaser at First Boston Corp. Chrysler, which bought Gulfstream Aerospace Corp in 1985, earlier said Electrospace agreed to be acquired in a friendly merger for about 367 mln dlrs. Analysts said the merger continues a trend in the automobile industry of diversification away from carmaking. General Motors Corp <GM> paid about five billion dlrs for Hughes Aircraft, an aerospace company, in 1985. A year earlier it bought Electronic Data Systems, a data processing firm, for about 2.5 billion dlrs. Meanwhile, Ford Motor Co <F> has added First Nationwide Savings as part of a move into financial services. Ford, which has a huge stockpile of cash, has indicated its interest in aerospace with Lockheed Corp <LK> once rumored as a possible target. Both Ford and Lockheed have denied the rumors, according to analysts. Ford has about 9.5 billion dlrs of cash and securities on hand, one analyst said. "The overall strategic thrust (within the car industry) is to become somewhat less sensitive to the vagaries of the automobile sales cycle," said analyst Jack Kirnan at Kidder Peabody and Co. "One way companies feel they can do it, particularly GM and Chrysler, is by diversifying into aerospace," Kirnan said. Ford has been "a little bit of a laggard" in that area, he said, which has been a concern to some investors. Chrysler's first big move away from autos came in 1985, when it purchased Gulfstream for 637 mln dlrs. Defense analysts said Chrysler was paying a high price for Electrospace but auto analysts regarded it as a modest outlay for the company. Electrospace earned 10 mln dlrs on sales of 191 mln dlrs in fiscal 1987 ended April 3. Kirnan said Chrysler may have some trouble digesting the Richardson, Texas, electronics firm because it is also buying American Motors Corp <AMC> for about two billion dlrs in a deal set to close later this year. "Chrysler will have their hands full absorbing AMC for a year or more and will absorb a lot of debt," Kirnan said, making them the most heavily leveraged auto company. But other analysts said the relative small size of Electrospace will make it easy for Chrysler to absorb. Analysts also noted that Hughes has contributed significantly to GM and that Gulfstream provided about 57 mln dlrs in pretax earnings to Chrysler last year. In a statement, Chrysler said 92 pct of Electrospace's sales were to the military. In addition to helping Gulfstream gain government business, Chrysler said it believes electronics technology will help the automobile business. Robert Miller Jr, Chrysler Corp vice chairman, said that Gulfstream's business, for example, involves electronics, composites and aerodynamic design. "Those will all be important technologies for winning in the automobile business in the 1990s," Miller told Reuters. Electrospace should add significantly to the electronics area, he said. Miller said Electrospace earnings last year were hurt by one-time items and but should recover this year. Miller said cash on hand will be used to pay for Electrospace. "They have a substantial presence in Washington with 150 or more professional people. They also have accounting systems in Texas to manage their business with the Defense Department," he said. Both should be important in moving Gulfstream into the military market. "Gulfstream traditionally has been aimed more at the commercial market, which is a different kettle of fish," Miller said. Reuter 19-JUN-1987 16:15:12.20 money-supply usa V RM f2291 reute f f BC-U.S.-BUSINESS-L 06-19 0011 ****** 19-JUN-1987 16:15:23.24 nyse F f2293 reute f f BC-NYSE-SAYS-SHORT 06-19 0012 ****** 19-JUN-1987 16:16:39.43 money-fx usa RM V f2297 reute b f US-BUSINESS-LOAN-FULLOUT 06-19 0055 WASHINGTON, June 19 - Business loans on the books of major U.S. banks, excluding acceptances, fell 896 mln dlrs to 275.61 billion in the week ended June 10, the Federal Reserve Board said. The Fed said that business loans including acceptances fell 546 mln dlrs to 278.12 billion dlrs. Reuter 19-JUN-1987 16:17:15.98 acq usa F f2299 reute u f BC-JUDGE-TO-RULE-MONDAY 06-19 0085 New York, June 19 - Manhattan Federal Court Judge Shirley Wohl Kram said she would rule Monday on whether to grant a request to block a 78 dlr per share merger agreement between Burlington Industries Inc and Morgan Stanely Group Inc <MS>. The request to bar the merger was made by Samjens Acquisition Corp, a partnership formed by financier Asher B. Edelman and Dominion Textiles Inc. Samjens has made a hostile 77 dlr per share takeover bid for Burlington. Reuter 19-JUN-1987 16:17:21.61 acq usa F f2300 reute r f BC-<K.G.-SAUR>-SELLS-ASS 06-19 0072 NEW YORK, June 19 - K.G. Saur, the German-based publisher of databases and legal and bilbiographic reference material, said it has sold all of its assets to The Butterworth Group, a division of Reed International PLC <REED.L>, for under 15 mln dlrs. Saur said Klaus Saur, president and owner of the company, will remain president of Saur operations in Munich, London and New York. Reuter 19-JUN-1987 16:17:35.17 amex F f2302 reute f f BC-AMEX-SAYS-SHORT 06-19 0012 ****** 19-JUN-1987 16:18:10.67 earn F f2304 reute d f BC-AEL-INDUSTRIES-INC-<A 06-19 0036 LANSDALE, Pa., June 19 - Shr 10 cts vs four cts Net 419,000 dlrs vs 196,000 dlrs Revs 27.3 mln dlrs vs 25.9 mln dlrs Note:the first quarter ended May 29 Reuter 19-JUN-1987 16:18:16.86 usa F f2305 reute r f BC-CHEFS-<CHEF.O>-COMPLE 06-19 0079 POINT PLEASANT BEACH, N.J., June 9 - Chefs International Inc said it completed a private sale of nine mln units of its securities for 20 cts per unit for a total price of 1,800,000 dlrs. The company said each unit consisted of one share of Chef's common stock and one three-year warrant exerciseable to purchase one share of Chef's stock at 25 cents. The company also said Robert E. Brennan purchased 8,250,000 of the units. Reuter 19-JUN-1987 16:21:09.75 earn usa F f2316 reute d f BC-NATIONAL-VIDEO-INC-<N 06-19 0035 PORTLAND, Ore, June 19 - Shr four cts vs nine cts Net 125,465 dlrs vs 245,718 dlrs Revs 8.4 mln dlrs vs 7.8 mln dlrs Note:the fiscal year ended March 31 Reuter 19-JUN-1987 16:22:41.22 usajapanussr F A RM f2321 reute b f BC-/PENTAGON-STOPS-NEW-B 06-19 0083 WASHINGTON, June 19 - The Pentagon has stopped approving any new military contracts to Japan's Toshiba Corp <TSBA.T> over a Toshiba subsidiary's transfer of submarine technology to the Soviet Union, a senior defense official said. "We are not approving any new contracts (with Toshiba) pending a satisfactory resolution of this entire matter," Deputy Assistant Defense Secretary Stephen Bryen told Reuters, confirming published reports on the matter. The temporary ban, which Bryen said has been in effect unofficially since April, could cost Toshiba hundreds of mlns of dlrs in electronics business with the Pentagon, including a pending 100 mln dlr Air Force deal for small computers. Bryen said the U.S. military services have not signed any contracts with Toshiba since April, when publicity arose over subsidiary Toshiba Machine Co's alleged sale to Moscow of milling machines which will grind silent submarine propellers. The Japanese government has been investigating the case and it was previously reported that Toshiba Machine sold four large milling machines to the Soviet Union in late 1983 or early 1984. But Bryen told Reuters in an interview that the Pentagon has now been informed by Japanese police that at least four more smaller machines capable of making such precision propellers were also sold to the Kremlin, apparently in 1984. "There may be even more beyond that. I don't know yet," Bryen said. Toshiba is known to be seeking a U.S. Air Force contract for 90,000 lap-top computers worth some 100 mln dlrs. The Air Force has called for new bids on that contract, partly because of the Toshiba investigation, Pentagon officials said. The officials, who asked not to be identified, said the computer contract is also being re-advertised for bidding because of changes in the dlr-yen ratio and questions raised by U.S. import restrictions on some Japanese micro-electronics. Two days ago, three U.S. senators said they wanted a temporary ban on all U.S. imports of Toshiba Corp products, including television sets and videotape recorders. Senators Jake Garn of Utah, Richard Shelby of Alabama and John Heinz of Pennslvania said they might seek an amendment to a major trade bill being considered by the Senate this summer. The Navy is reported to be furious over the technology transfer, and Pentagon officials have told Reuters that some of the state-of-the-art propellers have already been mounted on Soviet attack submarines. The Japanese government has already prohibited Toshiba Machine Co from doing any business with the Soviet Bloc for one year. The Norweigan state-own firm Kongsberg Vaapenfabrikk was involved in the original technology transfer, providing vital computer software to be used with the Japanese milling equipment. But the Norweigan firm is now being reorganized and Bryen said that it apparently was not involved in the alleged more recent transfer of Toshiba Machine equipment. Reuter 19-JUN-1987 16:24:57.46 acq usa F f2327 reute u f BC-ARCHER-DANIELS-<ADM> 06-19 0073 CHICAGO, June 19 - Archer-Daniels-Midland Co denied a report that it is interested in acquiring International Minerals and Chemical Corp (IGL). "We have no interest in International Minerals or any of its divisions," a spokesman told Reuters. "We've had no conversations with them." USA Today reported that Archer-Daniels-Midland might be seeking a hostile takeover of International Minerals. Reuter 19-JUN-1987 16:29:21.73 earn canada E F f2341 reute r f BC-KAUFEL-GROUP-LTD-(KGL 06-19 0046 MONTREAL, June 19 - Shr 15 cts vs 10 cts Net 1,790,824 vs 1,031,602 Revs 14.0 mln vs 6.7 mln Nine mths Shr 41 cts vs 23 cts Net 4,830,513 vs 2,296,192 Revs 40.5 mln vs 15.4 mln Avg shrs 12.0 mln vs 10.5 mln Reuter 19-JUN-1987 16:30:07.56 acq usa F f2343 reute r f BC-ZONDERVAN 06-19 0118 WASHINGTON, June 19 - One of several investor groups formerly associated with London investor Christopher Moran in his unsuccessful bid to take over Zondervan Corp last year, said it cut its stake in the company to less than five pct. In a filing with the Securities and Exchange Commission, the group, led by investors Lawrence Altschul and James Apostolakis, said it cut its Zondervan stake to 157,500 shares, or 3.8 pct of the total, from 246,500 shares, or 5.9 pct. The group, which earlier this month said in an SEC filing it wanted join with other groups to maximize share values, said it sold 89,000 shares between June 9 and 15 for 1.5 mln dlrs. The group had joined with the Moran group, which last year assembled a combined 44 pct stake in Zondervan during its unsuccessful takeover try. Last month, the Moran group broke up and splintered into various factions. Moran himself withdrew from the takeover effort and last reported his personal stake at 4.8 pct. A group led by Miwok Capital Corp, a California broker with a 10.6 pct stake, and another one led by Minneapolis stockbroker Jeffrey Wendel with 2.6 pct, have both made recent SEC filings saying they are seeking agreements with other parties who may want to seek control of the company. Reuter 19-JUN-1987 16:33:19.49 venezuela RM A f2347 reute u f BC-venezuela-to-seek-2.4 06-19 0078 Caracas, june 19 - venezuela will seek 2.4 billion dollars in export financing during 1987, double the amount it received last year, public finance director jorge marcano said. Marcano told reporters at the finance ministry yesterday that the 2.4 billion is part of a total package of 3.2 billion dlrs in new credits, which venezuela will try to obtain. "we've begun efforts to secure that financing," he said. Reuter 19-JUN-1987 16:33:33.48 usa F f2349 reute w f BC-AMERICA-POP-INC-<HOST 06-19 0094 CHICAGO, June 19 - America Pop Inc said it plans to build with its joint venture partner, Puissant Group, a 2.6 mln dlrs 120-unit Days Inn Motor Lodge at the Ohio State Fairgrounds in Columbus. Construction is expected to be completed in late October. The company also said it plans to complete by mid-October, construction of a 60-unit Days Inn in Athens, Ohio, and by November a 60-unit Days Inn Motor Lodge in Green Castle, Pennsylvania. These two projects are organized as limited partnerships, it said. Reuter 19-JUN-1987 16:34:17.96 zinclead canada C M f2351 reute u f BC-/NORANDA-BRUNSWICK-MI 06-19 0137 TORONTO, June 19 - Noranda Inc said 1,100 unionized workers at its 63 pct-owned Brunswick Mining and Smelter Corp lead-zinc mine in New Brunswick would start voting Monday on a tentative contract pact. Company official Andre Fortier said "We are hopeful that we can settle without any kind of work interruption." Fortier added that Brunswick's estimated 500 unionized smelter workers were currently meeting about a Noranda contract proposal and would probably vote next week. The mine's contract expires July 1 and the smelter's on July 21. The Brunswick mine produced 413,800 tonnes of zinc and 206,000 tonnes of lead last year at a recovery rate of 70.5 pct zinc and 55.6 pct lead. Concentrates produced were 238,000 tonnes of zinc and 81,000 tonnes of lead. Reuter 19-JUN-1987 16:37:13.51 acq usa F f2360 reute d f BC-NEW-LEADER-COMING-TO 06-19 0093 By Irwin Arieff, Reuters WASHINGTON, June 19 - President Reagan's nominee as top policeman for the nation's securities markets will inherit an agency challenged by an insider trading scandal, wild stock price gyrations and a host of uncertainties stemming from the globalization of financial markets. David Ruder, a 58-year-old Republican law professor at Northwestern University in Evanston, Ill., was named Thursday to be the 23rd chairman of the five-member U.S. Securities and Exchange Commission. If confirmed by the Senate, as expected, he will succeed John Shad, who left the agency earlier this week after a record six years as chairman to become ambassador to the Netherlands. The SEC has been in the limelight for the past year as its investigators have probed into the most colossal insider trading scandal ever uncovered on Wall Street. The investigation, which is still active, mushroomed in recent months as a growing number of well known traders and prominent investment banking firms have been charged with wrongdoing. The pace of the probe picked up markedly in November after Ivan Boesky, one of Wall Street's most successful stock speculators, agreed to cooperate with government investigators and to pay a record 100 mln dlrs in penalties and illegal profits after being charged with insider trading. But the agency is also wrestling with a vexing new phenomenon of huge and rapid swings in stock prices, spurred by computer-driven trading strategies that span markets in securities, options and futures. The price gyrations have combined with rising trading volumes to bring unprecedented volatility to some U.S. securities markets. At the same time, the SEC is being pressed by some lawmakers to put a stop to abusive tactics in corporate takeover contests as an unrelenting wave of such takeovers steadily reshapes the U.S. corporate landscape. And the agency is being pushed by U.S. and foreign exchanges intent on expansion to lay the regulatory groundwork for an international securities marketplace in which trading occurs across borders throughout the world, around the clock. Such worldwide trading networks offer vast new investment opportunities but could strain the SEC's ability to enforce U.S. securities laws and guard investors from fraud. Under the leadership of Shad, the SEC eased financial disclosure requirements for publicly traded companies, eliminated many minor investor protection rules, attempted to spur competition among exchanges and streamlined the agency's review of hostile corporate takeovers. Shad, who had been vice chairman of the E. F. Hutton investment banking firm, brought a Wall Street perspective to the agency upon being named chairman in 1981. In line with the views of other top administration officials, he favored marketplace determination of takeover battles over new federal regulations. The SEC under Shad also stressed prosecution of insider trading violations over the corporate wrongdoing cases that topped the agency's enforcement agenda during the administration of President Jimmy Carter, a Democrat. Securities lawyers and industry officials acquainted with Ruder say the new chairman-designate is unlikely to significantly alter the commission's current priorities. The SEC currently has about 2,000 employees, most of them lawyers, and an annual budget of about 115 mln dlrs though that figure likely will be significantly higher next year as the agency moves to beef up its enforcement staff. The agency is one of the few in the government that actually has taken in more money than it has spent in the past few years because of fees it charges public companies, investment banks and other securities firms it regulates. The SEC is structured as an independent regulatory agency, meaning that its five commissioners are appointed by the president to fixed five-year terms and protected from firing for policy differences alone. By law, no more than three commissioners may be of the same political party, and the agency prepares its own budget request each year instead of leaving this to the White House. Established by Congress in 1934, the SEC traces its origins to the great stock market crash of 1929, which was attributed in large part to widespread trading on credit and attempted market manipulations by large investment firms. The agency requires public companies and investment vehicles such as mutual funds to issue periodic reports on their financial condition and to disclose changes in their condition any time they issue new securities. It requires brokers, dealers and investment banks to register with it and comply with investor protection rules, and it polices exchanges and regulates trading practices. Its first chairman was Joseph Kennedy, an industrial magnate who was also the father of John Kennedy, later to become the nation's 35th president. Other former chairmen include William Douglas, who served from 1937 until his appointment to the U.S. Supreme Court in 1939, and William Casey, who served during President Nixon's first term and was Reagan's director of the Central Intelligence Agency until his death earlier this year. Reuter 19-JUN-1987 16:42:17.98 trade usa yeutter F A RM f2375 reute d f BC-U.S.-ASKS-CONGRESS-TO 06-19 0112 WASHINGTON, June 19 - The Administration asked Congress to replace the U.S. tariff schedule with a new system to bring it into line with international tariff categories, U.S. Trade Representative Clayton Yeutter said. The new system will add such items as fiber optics and more accurately define new composites, items not widely traded when the current schedule was devised some 30 years ago. Yeutter said the Harmonized System, as the new schedule is called, will change tariff categories and definitions to meet the present-day needs of exporters and importers, but they should pay about the same rates of duties. Yeutter said, "American exporters will find it far easier to deal with one standardized worldwide system than the variety of differing systems which they now face." He said the new system ended 12 years of multinational negotiations to create the unified tariff schedule. Yeutter said government and business moves are based on data from tariff schedules and the new system will improve knowledge of trade flows and the quality of decision-making. He said 56 nations pledged to bring their standards under the new system, with about half expected to join the system by January 1988. reuter 19-JUN-1987 16:44:24.74 usa A RM f2383 reute r f BC-MOODY'S-AFFIRMS-PNC-F 06-19 0110 NEW YORK, June 19 - Moody's Investors Service Inc said it affirmed 500 mln dlrs of debt of PNC Financial and units. Affirmed were Aa-2 senior debt of PNC Financial Corp and PNC Funding Corp, AAA long-term deposits of Pittsburgh National Bank, and Aa-2 long-term deposits of Citizens Fidelity Bank and Trust. Moody's cited PNC's announced special second-quarter loan loss provision of 110 mln dlrs to raise loss reserve coverage of loans to economically troubled borrowers in less-developed countries. Moody's said the firm's financial condition would not change materially as a result of the action. Reuter 19-JUN-1987 16:45:10.74 acq usa F f2387 reute u f BC-SORG 06-19 0093 WASHINGTON, June 19 - A group led by Chas. P. Young Co, a subsidiary of Service Resources Corp, said it cut its stake in Sorg Inc to 366,700 shares, or 16.7 pct of the total outstanding common stock, from 385,000 shares, or 17.5 pct. In a filing with the Securities and Exchange Commission, Young, which yesterday withdrew its 23 dlr a share takeover proposal, said its other group member, SDI Partners Ltd Partnership, sold 18,300 Sorg common shares between June 16 and 18 at 17-1/2 to 19 dlrs each. Reuter 19-JUN-1987 16:47:49.90 usa F f2395 reute r f BC-AUDI-OF-AMERICA-LIFTS 06-19 0061 TROY, Mich., June 19 - Audi of America Inc said it will increase prices on all models by an average of 3.9 pct, or 838 dlrs, effective July 20. The increase applies to Audi 4000S, 4000CS Quattro, Coupe GT, 5000S sedan and wagon, 5000S Quattro, 5000CS Turbo, and 5000CS Turbo Quattro sedan and wagon models, the company said. Reuter 19-JUN-1987 16:48:03.00 usa F f2397 reute r f BC-EATON-<ETN>-GETS-25-M 06-19 0078 FARMINGDALE, N.Y., June 19 - Eaton Corp said it was awarded a 25 mln dlr contract by the U.S. Customs Service for development of an intelligence system intended to intercept drug smuggling along the southern border of the U.S. The contract calls for the company to provide the government with the most current information gathering and assessment technology available in its fight against border drug trafficking, Eaton said. Reuter 19-JUN-1987 16:48:29.99 usa F f2399 reute s f BC-MOORE-FINANCIAL-GROUP 06-19 0024 BOISE, Idaho, June 19 - Qtly div 30 cts vs 30 cts prior Pay July 16 Record July 6 Reuter 19-JUN-1987 16:48:40.73 usa F f2400 reute s f BC-THE-PARKWAY-CO-<PKWY. 06-19 0023 JACKSON, Miss., June 19 - Qtly div 20 cts vs 20 cts prior Pay Aug 19 Record Aug 3 Reuter 19-JUN-1987 16:48:59.67 earn usa F f2402 reute h f BC-DWI-CORP-<DWIC.O>-3RD 06-19 0048 MISSION VIEJO, Calif., June 19 - Shr profit nil vs loss two cts Net profit 39,617 vs loss 200,740 Revs 619,076 vs 491,085 Nine Mths Shr loss nil vs loss five cts Net loss 68,293 vs loss 434,087 Revs 1,614,960 vs 1,791,148 Reuter 19-JUN-1987 16:49:42.37 acq usa F f2404 reute u f BC-SUPREME-EQUIPMENT 06-19 0061 WASHINGTON, June 19 - Towle and Co, a St. Louis, Mo., investment advisory firm, told the Securities and Exchange Commission it has acquired 55,900 shares of Supreme Equipment and Systems Corp, or 5.1 pct of the total outstanding. Towle said it bought the stock for investment purposes on behalf of its advisory clients. Reuter 19-JUN-1987 16:51:14.86 usa F f2408 reute d f BC-MOSELEY-HOLDING-CORP 06-19 0083 NEW YORK, June 19 - Moseley Holding Corp said it expects a loss for its first fiscal quarter ending June 30. The company said the losses are related to its municipal bond, unit trust and corporate bond activities, all of which were affected by the difficult bond market. The company said losses for those areas were close to four mln dlrs for April and May. It said its mortgage-backed activities were profitable during those months. Reuter 19-JUN-1987 16:51:52.85 usa F f2411 reute d f BC-PHILADELPHIA-ELECTRIC 06-19 0056 PHILADELPHIA, June 19 - Philadelphia Electric Co said it completed the sale of 1,500,000 shares of common stock by a continuous offering plan through Drexel Burnham Lambert Inc. The company said proceeds from the sale, which amount to 32.4 mln, will be used for its construction program. Reuter 19-JUN-1987 16:52:09.02 tradebop italy RM f2413 reute r f BC-ITALY'S-DEFICIT-NOT-C 06-19 0095 ROME, June 19 - Italy's Foreign Trade Minister Mario Sarcinelli, commenting on speculation in the Italian press, said a sharp balance of payments deficit in May could not be attributed to recent moves liberalizing the purchase of foreign securities. Sarcinelli was reacting to suggestions that last month's overall 3,211 billion lire deficit, which compares with April's 2,040 billion surplus, could be linked to a May 13 decree abolishing obligatory non-interest-bearing deposits on foreign securities purchases. "The deficit can be better attributed to premature and delayed foreign trade payments and receipts (leads and lags) rather than capital outflow to portfolio investment," Sarcinelli said in a statement. Earlier today the newspaper La Repubblica cited remarks by the Bank of Italy, which announced the deficit for May and said it had been partly caused by "non-banking capital outflows." "In practice, it seems that there has been a constant flow of capital to foreign securities or investments outside our borders," said the newspaper. But the newspaper added that it was still not possible to say how far the move to abolish foreign securities purchase deposits had affected Italy's balance of payments. Reuter 19-JUN-1987 16:52:41.90 usa F f2416 reute r f BC-ALLIED-STORES-NAMES-A 06-19 0051 NEW YORK, June 19 - <Allied Stores Corp> named Michele Fortune president and division chief executive officer of its Ann Taylor division stores. Allied said Fortune is currently senior vice president-merchandising of <Lord and Taylor> of New York. Reuter 19-JUN-1987 16:54:50.84 usa F f2422 reute d f BC-EQUITABLE-LIFE-ASSURA 06-19 0044 NASHVILLE, Tenn., June 19 - <Equitable Life Assurance Society of the United States> and Hospital Corp of America <HCA> said their Equicor joint venture unit named William Hjorth vice chairman and chief operating officer. Reuter 19-JUN-1987 16:55:50.90 acq canadausa E F f2424 reute r f BC-SICO-(SIC.TO)-TO-BUY 06-19 0080 MONTREAL, June 19 - Sico Inc said it agreed in principle to buy the U.S. assets of Reichold Chemicals Inc's Sterling Group, which manufactures electrical insulation compounds and industrial resins and develops coatings for the electronics industry. Terms were undisclosed. Sico said it acquired Sterling Group's Canadian assets in February. It said the U.S. acquisition adds about 15 mln dlrs to its annual sales volume. Reuter 19-JUN-1987 16:56:27.53 acq usa F f2426 reute r f BC-SILICON 06-19 0082 WASHINGTON, June 19 - A group of Boston investors and investment partnerships told the Securities and Exchange Commission it sold its entire stake in Silicon Systems Inc of 410,000 shares, or 6.0 pct of the total outstanding. The group, which includes HLM Associates, HLM Associates II and their three general partners, said it sold the stock between April 22 and June 9 at 9.00 to 9.125 dlrs a share as the result of an investment decision. Reuter 19-JUN-1987 16:57:26.09 usa F f2428 reute u f BC-MOSELY-<MOSE.O>-EXPEC 06-19 0072 NEW YORK, June 19 - Mosely Holding Corp said it expects to report an unspecified loss in the first quarter ending June 30. The company said the current quarter result will reflect losses associated with municipal bond, unit trust, and corporate bond activities. It reported net income of 203,000 dlrs, or one cent per share, on revenues of 35.5 mln dlrs in the fiscal 1986 first quarter. Reuter 19-JUN-1987 17:01:37.28 earn canada E F f2444 reute r f BC-SHIRMAX-FASHIONS-LTD 06-19 0042 MONTREAL, June 19 - qtr ended May 2 Oper shr three cts vs 11 cts Oper net 333,000 vs 885,000 Revs 14.9 mln vs 12.2 mln Note: Latest qtr exludes writeoff of 735,000 dlrs from store renovation. Reuter 19-JUN-1987 17:07:20.27 acq usa F f2458 reute u f BC-TANDY-BRANDS 06-19 0086 WASHINGTON, June 19 - A group of companies including Chicago-based Coronet Insurance Co and Sunstates Corp, a Jacksonville., Fla., real estate firm, said it raised its stake in Tandy Brands Inc to 175,900 shares, or 6.9 pct of the total. In a filing with the Securities and Exchange Commission, the group said it bought 43,600 Tandy common shares between May 21 and June 9 for 633,333 dlrs in addition to the 132,300 shares, or 5.2 pct, it had held previously. Reuter 19-JUN-1987 17:08:11.32 usa F f2459 reute r f BC-WISCONSIN-POWER-<WPC> 06-19 0109 MILWAUKEE, June 19 - Wisconsin Electric Power Co said a small amount of slightly radioactive water was released from its Point Beach Nuclear Plant at Two Creeks, Wis. The company said 235 gallons of cooling water were released into Lake Michigan this morning as plant employees accidentally opened a valve while cleaning a holding tank. The company said the radioactive water was heavily diluted and that it expects "no environmental or public health or safety impact as a result of this discharge." Preliminary tests of lake samples detected no increase in lake water radioactivity, it said. Reuter 19-JUN-1987 17:08:17.82 acq usa F f2460 reute r f BC-GATEWAY-<GMSI.O>-RECI 06-19 0054 ATLANTA, June 19 - Gateway Medical Systems Inc said it has withdrawn its May 27 offer to acquire <Westworld Community Healthcare Inc>. The company said it remains interested in acquiring the Westworld's hospitals and will attempt to continue negotiations with Westworld. Reuter 19-JUN-1987 17:12:52.03 usa F A RM f2472 reute u f BC-SALLIE-MAE-ANNOUNCES 06-19 0112 WASHINGTON, June 19 - The Student Loan Marketing Association announced a five-year fixed rate note offer bearing interest at 8.25 pct per annum and priced at 99.635. It said the notes, due 1992, will be offered along with two mln foreign currency warrants at 4.375 dlrs each, which increase in value if the U.S. dollar rises against the yen and decrease if the dollar falls against the yen. Semi-annual interest payments on the book-entry notes begin Dec 29, it said, adding that both obligations will be traded on the American Stock Exchange and will be sold by Morgan Stanley and Co Inc and Dean Witter Reynolds Inc. Reuter 19-JUN-1987 17:14:50.39 usa F f2477 reute r f BC-AMERICAN-CAPITAL-CORP 06-19 0078 MIAMI, Fla., June 19 - American Capital Corp said it will offer to holders of its 13,325,367 outstanding common stock purchase warrants 2.10 dlrs cash and 0.09 shares of common stock for each outstanding warrant. The company said the offer will remain open until July 21. It said the offer is subject to certain conditions including completion of the pending public offering of a new series of preferred stock. Reuter 19-JUN-1987 17:16:08.97 usaargentina alfonsincamdessus imf RM A f2478 reute u f BC-ARGENTINA'S-ALFONSIN 06-19 0099 PHILADELPHIA, June 19 - Argentine President Raul Alfonsin met for more than an hour with International Monetary Fund Managing Director Michel Camdessus, and Argentine economy minister Juan Sourrouille said the two men discussed Argentina's economy and its commercial bank financing package. Sourrouille told reporters that 91.5 pct of the 1.95 billion dlr loan, which forms the core of the package, has been subscribed. Citibank, the chairman of Argentina's bank advisory committee, said yesterday that subscriptions totalled about 91 pct. The IMF has said that a "critical mass" of bank commitments is needed before it will start disbursing the 1.83 billion dlr standby loan that it has approved in principle for Argentina. Asked what the IMF has stipulated as a critical mass, Sourrouille said, "That has not been defined but anywhere over 90 pct we are doing fine." Although most of the money has been subscribed, officials noted that about a third of Argentina's 350 creditor banks hold 93 pct of its debt. They are worried that it might take a long time to persuade the other banks to join the deal. Monetary sources said Alfonsin and Camdessus, who had not met before, mostly discussed Argentina's political and economic situation. Alfonsin, who is beginning a four-day private visit to the U.S., was in Philadelphia to speak to the private World Affairs Council, a non-partisan body dedicated to increasing public awareness of international affairs. In his speech, Alfonsin said economic integration is the only way for Latin America to overcome its current crisis. "This (economic integration) is probably the most audacious challenge facing Latin America this century, perhaps the most audacious of our history," he said. Reuter 19-JUN-1987 17:17:55.02 usa F f2485 reute r f BC-FIRST-CHICAGO-<FNB>-F 06-19 0062 CHICAGO, June 19 - First Chicago Corp said it registered for an offering of nearly 2.5 mln shares of cumulative convertible preferred stock, Series A, with a value of 50 dlrs a share. The stock will be issued in conjunction with First Chicago's previously announced acquisition of First United Financial Services Inc. First United holders will have the option to receive either First Chicago preferred stock or cash in exchange for their shares, provided that no more than 70 pct of First United shares will be exchanged for preferred stock. The preferred stock's conversion premium will be 22.86 pct. The dividend will be fixed shortly before closing at a rate causing the preferred stock to initially trade at par, subject to a minimum rate of five pct and a maximum rate of nine pct. Reuter 19-JUN-1987 17:21:09.48 coffee brazil C T f2490 reute f f BC-RIO-DE-JANEIRO---IBC 06-19 0012 ****** 19-JUN-1987 17:24:52.67 earn usa F f2498 reute d f BC-<BOWER-INDUSTRIES-INC 06-19 0029 COSTA MESA, Calif., June 19 - Shr profit six cts vs loss 18 cts Net profit 156,000 vs loss 212,000 Revs 5,094,000 vs 5,669,000 Reuter 19-JUN-1987 17:28:10.38 usa F f2503 reute s f BC-AMERICAN-ROYALTY-TRUS 06-19 0024 HOUSTON, June 19 - Qtly div 14.25 cts vs 14.25 cts prior Pay Sept 21 Record July 1 Reuter 19-JUN-1987 17:32:44.91 acq F f2509 reute f f BC-WPP-GROUP-PLC-S 06-19 0014 ****** 19-JUN-1987 17:34:31.35 acq usa nasdaq F f2513 reute d f BC-JOE-FRANKLIN-AND-ASSE 06-19 0055 NEW YORK, June 19 - Privately-held Joe Franklin Productions Inc said it entered into a preliminary agreement to merge with Assets Development Corp, a public company. Terms were not disclosed. The companies said they expected the merged group to qualify for listing on NASDAQ. Reuter 19-JUN-1987 17:37:14.68 nat-gas F Y f2515 reute f f BC-TENNECO-TO-BECO 06-19 0010 ****** 19-JUN-1987 17:40:22.03 acq usa F f2521 reute u f BC-DART-GROUP-DECLINES-C 06-19 0083 New York, June 19 - Dart Group Corp <DARTA.O> said it has no comment on reports the company has been accumulating shares of Dayton Hudson Corp. Dayton Hudson said in a letter to shareholders it told an "aggressive buyer" of its stock that it does not want to be acquired. Wall Street sources have identified the buyer as Dart, which earlier this year was thwarted in a takeover attempt for the now privately held Supermarkets General Corp. Reuter 19-JUN-1987 17:40:33.83 usa F f2522 reute r f BC-BOWER-CHANGES-NAME,-R 06-19 0099 COSTA MESA, Calif., June 19 - <Bower industries Inc> said it changed its name to Metalclad Corp and has restructured a loan agreement with its bank. Under the pact, a 3.5-mln-dlr revolving credit line will be converted to a 1.8-mln-dlr six year note and a 1.7-mln-dlr revolving line of credit. The company said it is also restructuring a 4,011,000-dlr debt to another creditor, whereby two mln dlrs will be forgiven, 1,950,000 dlrs will be converted into two long-term notes due April, 1989 and 61,000 dlrs has been included in a line of credit. Reuter 19-JUN-1987 17:40:53.82 earn usa F f2524 reute h f BC-RISE-TECHNOLOGY-INC-< 06-19 0028 CAMBRIDGE, Mass., June 19 - Shr loss 33 cts vs loss one ct Net loss 320,000 vs loss 8,000 revs 822,000 vs 405,000 Reuter 19-JUN-1987 17:41:05.21 usa F f2525 reute s f BC-EASTGROUP-PROPERTIES 06-19 0024 JACKSON, Miss., June 19 - Qtly div 65 cts vs 65 cts prior Pay July 22 Record July 10 Reuter 19-JUN-1987 17:44:52.63 usa F f2529 reute d f BC-MAGNOLIA-FOODS-<CAFE. 06-19 0085 OKLAHOMA CITY, Okla., June 19 - Magnolia Foods Inc said it completed a 250,000 dlr private offering of convertible preferred and common purchase warrants. Magnolia also said it signed a license agreement and approved a conversion site in Tulsa, Okla., and its previously approved conversion site in Colorado Springs, Colo., will be opened in late July. Magnolia operates nine cafes: four are licensed, four are are joint ventures and one is company owned. Reuter 19-JUN-1987 17:45:47.19 usa F f2530 reute r f BC-WAREHOUSE-CLUB-<WCLB. 06-19 0103 CHICAGO, June 19 - Warehouse Club Inc said it subleased two Chicago locations closed in April and is reviewing the five mln dlr second quarter reserve established to cover the cost of the closures. The company told Reuters it will probably remove two to three mln dlrs of the total reserve amount which will result in higher third quarter profits. In the 1986 quarter, Warehouse Club had net loss of 891,000 dlrs or 13 cents a share on sales of 41.4 mln dlrs. The company said it will achieve a profit in the third quarter despite any reduction in the reserve. Reuter 19-JUN-1987 17:56:58.74 acq usa F f2543 reute u f BC-WPP-GROUP-PLC-EXTENDS 06-19 0060 NEW YORK, June 19 - <WPP Group Plc> said it is extending its 50.50 dlrs a share offer for JWT Group Inc until midday June 22. The company temporarily extended the offer on June 17 but did not give an expiration date. Its 45 dlrs a share offer for JWT, which has been rejected by JWT, expires on July 10. Reuter 19-JUN-1987 18:00:01.84 nat-gas usa F Y f2552 reute u f BC-/TENNECO-<TGT>-TO-TRA 06-19 0108 HOUSTON, June 19 - Tenneco Inc said Tennessee Gas Pipeline Co, its largest interstate natural gas pipeline, will transport natural gas under the open access rules of the Federal Energy Regulatory Commission, FERC. In open access, gas pipelines serve purely as a transport company, moving gas from suppliers to customers. Pipelines also transport its own gas to customers. Earlier this week, Transco Energy Co <T> rejected the FERC guidelines, saying it would not offer open access until the regulatory body offers a solution to the exposure it faces for gas it has bought but could not sell. The exposure faced by the industry stems from take or pay contracts, under which pipelines bought gas on long-term contracts they could not sell. The problem grew severe as customers won cheaper sources of gas because of open access. Some industry analysts speculated earlier this week that Tenneco might follow Transco's lead and close its pipelines to open-access because of the take-or-pay issue. But Tenneco today said open access "is one of the steps FERC is taking to restructure the gas industry in the U.S. FERC is moving the industry through this restructuring now, even before all transitional problems are solved." A spokesman said Tenneco faces 1.7 billion dlrs in exposure under the take-or-pay contracts, but he had no specific figure for Tennessee Gas, which runs 2,000 miles of pipelines from Louisiana and Texas up to New England. "We remain convinced that the most critical transitional issue facing the industry--take-or-pay--must be resolved by FERC in the near future. "A failure to do so could have grave consequences for the industry's continued ability to provide its customers with reliable natural gas," said Tennessee Gas Transmission Co president R.C. Thomas. Reuter 19-JUN-1987 18:00:39.57 usa E F Y f2555 reute r f BC-CONSUMERS'-GAS-<CGT.T 06-19 0059 TORONTO, June 19 - Consumers' Gas Co Ltd said it agreed to sell on July 6 100 mln dlrs of 10.60 pct debentures maturing in 2012 and priced at 998 dlrs per 1,000 dlrs principal amount. The company said it would use proceeds for general corporate purposes. It said the underwriter is Gordon Capital Corp. Reuter 19-JUN-1987 18:04:05.27 acq usa F f2563 reute r f BC-MAXICARE-<MAXI.O>-END 06-19 0096 BIRMINGHAM, Ala., June 19 - Maxicare Health Plans Inc said it ended negotiations to sell Maxicare Alabama L.P. to (Complete Health Inc). The companies said last week they had reached agreement in principle for Complete Health to purchase the health maintenance organization, the largest in Alabama. Maxicare said the terms would not be in the best interests of the heatlh care providers who have built the Alabama HMO. It said it now intends to work with its health care providers in Alabama to further develop the HMO. Reuter 19-JUN-1987 18:04:56.70 earn usa F f2564 reute r f BC-CHIRON-CORP-<CHIR.O> 06-19 0050 EMERYVILLE, Calif., June 19 - Shr loss 22 cts vs loss 18 cts Net loss 2,494,000 vs loss 1,608,000 Revs 3,590,000 vs 1,710,000 Year Shr loss 68 cts vs loss 53 cts Net loss 7,318,000 vs loss 4,160,000 Revs 10,503,000 vs 7,134,000 Reuter 19-JUN-1987 18:05:44.84 earn usa F f2565 reute d f BC-METHODE-ELECTRONICS-I 06-19 0044 CHICAGO, June 19 - qtr ended April 30 Shr nine cts vs 17 cts Net 1,026,000 vs 1,840,000 Revs 25.9 mln vs 26.1 mln Year Shr 27 cts vs 56 cts Net 2,942,000 vs 5,865,000 Revs 95.7 mln vs 96 mln Reuter 19-JUN-1987 18:17:58.63 venezuela imf RM A f2582 reute u f BC-venezuela-may-ask-imf 06-19 0088 Caracas, june 19 - venezuela may turn to the international monetary fund for credits as part of the country's overall effort to reestablish financial flows from abroad, finance minister manuel azpurua said today. "this is no secret. It's just one of the steps the executive has begun taking to reestablish financial flows to the country," azpurua told reporters at the finance ministry. He did not specify what types of loans venezuela would seek from the fund or the amounts involved. A technical team from the imf is currently in caracas gathering data for its annual report on the venezuelan economy, the finance minstry said. Members of the mission met today with officials from the ministry's public finance department. Venezuela is one of the few latin american debtors which has not drawn standby or extended fund facilty loans from the imf since the region's financial crisis began in 1982. The country has an imf quota of 1.371 mln sdr's (1.75 billion dollars), according to the fund's 1986 report. Reuter 19-JUN-1987 18:30:18.86 leadzinc canada M f2590 reute r f BC-/NO-COMINCO-STRIKE-TA 06-19 0112 TRAIL, British Columbia, June 19 - Cominco Ltd said no talks were scheduled with striking workers at its Trail smelter and Kimberley, British Columbia lead-zinc mine. A company spokesman said the company and union met informally Tuesday but talks did not constitute a formal bargaining session. The last formal talks were on June 5. The workers went on strike May 9 and production has been shut down since then. The Trail smelter produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley produced 2.2 mln long tons of ore in 1986, most for processing at the Trail smelter. Reuter 19-JUN-1987 18:33:18.89 gnp usa RM F A f2591 reute u f BC-ECONOMY-OUTLOOK 06-19 0108 By Kenneth Barry, Reuters WASHINGTON, June 19 - The economy faces lackluster growth and the risk of recession this year if the recent improvement in U.S. exports should falter, economists say. Growth will slow sharply in the next months due to weakness in the key housing and auto sectors and could be further hampered unless consumer spending picks up, they say. "These factors raise the question: Is there enough strength to keep the economy from tipping into a recession?" said Lyle Gramley, chief economist of the Mortgage Bankers Association and a former Federal Reserve Board official. The Commerce Department said this week that the economy grew by a robust 4.8 pct annual rate in the first quarter, but a U.S. monetary official called it a weak report. Housing starts fell 2.7 pct in May, and consumer spending rose a weak 0.1 per cent. "Our two largest visible industries -- autos and housing -- are faltering, but exports are picking up some of the slack, " Martin Mauro, senior economist for Merrill Lynch Economics, told Reuters. Gramley said he is worried that consumer spending may slow because inflation is rising faster than real wages. To offset this, U.S. exports must continue to rise, returning enough jobs to the manufacturing sector to boost personal income and consumption, he says. "I expect to see enough improvement in real net exports to keep a recession from happening, but it is a close call," Gramley said. Federal Reserve Board Governor Martha Seger told reporters that the apparent strength in the 4.8 pct growth figure was the result of a temporary buildup in inventories that will not last and said the recovery was showing anemia. Seger said that with the recovery stumbling along, "The pace of the economy and the lack of robustness must be factored into monetary policy" - possibly a signal that the Fed will be accommodative. Most economists predict growth slower than the 3 pct forecast by the Reagan administration for 1987 and warn that if the dollar drops suddenly, higher inflation will result and add to the risk of a recession. Mauro said a 0.5 pct rise in industrial production in May came despite cutbacks in output in the auto industry, where an inventory overhang still exists. He says the boost in production came from smaller industries like paper, chemicals, and lumber which have improved sales overseas due to the drop in the dollar. "They are not going to be enough for any kind of surge in economic activity, but I think they will keep us out of a recession," Mauro said. In a speech to financial planners this week, Beryl Sprinkel, the chief White House economic adviser, predicted the trade deficit will continue to improve. "Prospects for continued economic growth through 1987 and into 1988 are still quite favorable," he said. But private economists raise concerns about a resurgence in inflation. Allen Sinai, chief economist at Shearson Lehman Brothers Inc., told Congress this week that inflation would rise to 4.5 to five pct this year and stay at that level through 1989 after a 1.1 pct increase in 1986. The rise is coming from a sharply lower dollar, higher oil and energy prices and rising prices for services, he said. "The lesson of history is that once the inflation genie gets out of the bottle, it continues to persist," he said, adding he would like the Fed to tighten credit. A major factor affecting inflation is the value of the dollar, which should continue to fall and feed inflation, says a prominent international banker. Rainer Gut, chairman of Credit Suisse, told the National Press Club that the dollar's downward trend against the yen and the mark will continue for years because the United States is the world's largest debtor nation. The Swiss banker said the economic indicators point to a further slackening of activity and called naive the belief that the five-year boom on world equity markets will go on forever. "It is very difficult to be optimistic," Gut said. Reuter 19-JUN-1987 18:33:27.18 usa F f2592 reute r f BC-CONDOM-RECALLS-RISE-D 06-19 0104 NEW YORK, June 19 - The Food and Drug Administration said stepped up testing of condoms by the agency has led to a three recalls by U.S. manufacturers and the detention of foreign-made condoms at U.S. borders. The FDA said industry standards require that roughly no more than four out of 1,000 condoms leak. Condoms are tested by pouring 10 ounces of water in each and looking for leakage. The FDA said Schmid Laboratories of Little Falls, N.J., has voluntarily recalled one lot of Sheik Fetherlite condoms, which was distributed to 22 accounts through the United States. The agency said Schmid reported that almost all of the condoms were still in transit or at wholesalers at the time of the recall and are being recovered. National Sanitary Labs of Lincolnwood, Ill, voluntarily recalled a lot of Protex Contracept Plus brand latex condoms which were distributed to a wholesaler in California and two retailers in Indiana and Michigan, the FDA said. The FDA said National estimates that none of the suspect lot remains on the market. The FDA also said National recalled two more lots of condoms following additional FDA tests. The FDA also said Circle Rubber Corp of Newark, N.J., is voluntarily recalling Saxon and L'appel condoms after being informed of FDA test results. The FDA said the condoms were distributed in North Carolina and Illinois. The FDA urged condom makers on April 7 to inform consumers about how condoms should be used to increase protection against sexually transmitted diseases, including AIDS. Since April, the FDA said it had detained 15 shipments of condoms made by firms in Korea and four shipments of condoms from Malaysia. Reuter 19-JUN-1987 18:33:46.37 coffee brazil C T f2593 reute u f BC-BRAZIL-COULD-EXPORT-1 06-19 0117 BRASILIA, June 19 - Brazil's coffee exports could amount to 19 mln bags this year, because of the excellent crop estimate of 35.2 mln bags, an IBC spokesman said. He said exports could surpass the average annual 18 mln bags mark, especially if the final harvest to be conducted in October and November confirms the crop at over 35 mln bags. He said the average limit of errors for the official crop harvest could be set at five pct above or below the first estimates officially published today. He said the IBC agreed with a request by producers for the Institute to ask the government for a monthly indexation of the guarantee minimum price. Reuter 19-JUN-1987 18:43:10.53 usa F f2605 reute r f BC-ENDOTRONICS-<ENDO.O> 06-19 0077 MINNEAPOLIS, June 19 - Endotronics Inc said operations at its joint venture with Summa Medical Corp <SUMA.O> has ended. The company said the venture provided production and purification services to biotechnology companies on a contract basis. Endotronics, which is reorganizing under Chapter 11, has a 75 pct stake in the partnership. The company said it intends to sell the facility that housed the operations. It said it is reviewing the adequacy of a two mln dlr reserve set up in the second quarter ended March 31 for the carrying value of the facility. The company said the cessation of the joint venture was the second move taken to refocus its operations on the instrumentation business. The company previously said it was no longer performing research and development for its health care technologies. Reuter 19-JUN-1987 18:50:39.88 acq usa F f2622 reute u f BC-FACET 06-19 0071 WASHINGTON, June 19 - Charter Oak Partners, a Connecticut investment partnership, said it raised its stake in Facet Enterprises Inc to 480,000 shares, or 9.6 pct of the total outstanding common stock, from 300,000 shares, or 6.0 pct. In a filing with the Securities and Exchange Commission, Charter Oak said it bought 180,000 Facet common shares on June 12 at 18.25 dlrs each. Reuter 19-JUN-1987 18:54:11.35 interest usa RM C f2624 reute u f BC-fin-futures-outlook 06-19 0097 by Patricia Campbell, Reuters CHICAGO, June 19 - The six basis point rise of the past month in U.S. debt futures may be extended next week by a series of U.S. economic reports, analysts said, as long as the dollar holds firm. "Interest rates have declined by approximately 50 basis points over the last month, largely over indications that inflation is not as high as people had feared and the narrowing U.S. trade balance, in nominal terms," Samuel Kahan, chief financial economist with Kleinwort Benson Government Securities, said. Kahan said recent government reports have shown strength in the economy during the first quarter, but his concern is whether the U.S. economy will sustain that strength in the longer term. Weak U.S. economic growth could hurt the dollar, which has become more important to the direction of debt futures than the beneficial impact on interest rates of a sluggish economy. The median trade expectations for Tuesday's U.S. Consumer Price Index and Durable Goods reports are up 0.4 pct and down 1.5 pct, respectively. Meanwhile, the eight billion dlr drop in the M-1 money supply announced this week was "surprising, much larger than expected," according to Kahan. "Unless quickly reversed," such a trend "will ensure that June M-1 growth will be negative," Kahan said. Taken in conjunction with M-2 and M-3 aggregates which Kahan said have "slowed to a crawl, below Federal Reserve Board annual targets," the consequences could be a hint of economic weakness down the road, he said. Based on chart formations, T-bond futures may be poised for further gains, although the advance has been slowed recently, analysts said. September T-bonds "are up almost six points since about May 18," Merrill Lynch debt analyst Jim Duggan noted. September bond futures climbed from the low of 87 a month ago to over 93 in mid-June, Duggan said. While follow-through buying has aided the advance so far, and bouts of short covering have prohibited a slide through chart support, the rally in September T-bonds has been thwarted above the 93 level. "The 93 level is formidable resistance and must be taken out before this activity is anything other than a trading range market," Carroll McEntee and McGinley Futures debt analyst Brian Singer said. The dollar remains the key fundamental factor, and the U.S. currency has made little headway of late, analysts said. "The critical variable remaining in the market is the value of the dollar," Kahan said. Additional influences next week will be possible developments ahead of an OPEC members meeting, and the impact and size of the U.S. budget deficit, "although these will not be in the forefront of the market early next week," Kahan said. In looking ahead to the U.S. Treasury mini-refunding auctions of 24.25 billion in T-notes on Tuesday, Wednesday and Thursday, Singer said the market will likely greet the results with little excitement. However, a successful auction could prove to be a turning point, depending on prevailing market psychology. Reuter 19-JUN-1987 19:02:50.50 canada E f2634 reute r f AM-POSTAL 06-19 0128 OTTAWA, June 19 - Canada Post asked the federal government to appoint a mediator to help end an increasingly violent series of strikes by the country's letter carriers. The government is expected to respond quickly to the request that was made after the union formally rejected the corporation's latest offer to settle the four-day-old dispute. The state-run postal service also said it would halt the use of replacement workers that the union has blamed for the trouble on the picket line. "We have become increasingly concerned that the safety of our employees, both striking employees and replacement workers, is at risk," Canada Post negotiator Harold Dunstan told reporters at a downtown Ottawa hotel. Robert McGarry, president of the 20,000 member Letter Carriers Union, told reporters he and other union leaders would consider suspending the walkouts for a week while the mediator is involved. In a bid to step up pressure on management, letter carriers walked out in Toronto today where some 50 pct of the country's mail is sorted. Workers also set up picket lines in other populous cities in southern Ontario, but went back to work in most other centers across Canada. There have been several arrests, property damage, and sometimes violent clashes between strikers and replacement workers whom the corporation hired to try and keep the mail moving. The Canadian Union of Postal Workers (CUPW), which represents postal employees who are not letter carriers and which is not on strike, said one of its workers was stabbed and is now in the hospital after a scuffle broke out with a replacement worker in Toronto early today. Police, however, said they had no report of a stabbing. CUPW President Jean-Claude Parrot called for the resignation of Andre Harvie, minister responsible for Canada Post, for condoning the use of the so-called strikebreakers. "The federal government has (the) blood of workers on its hands in this postal strike," Parrot told reporters at the union's Ottawa headquarters. Reuter 19-JUN-1987 19:14:24.70 usa F f2640 reute u f BC-JUDGE-HEARS-APPEALS-A 06-19 0105 NEW YORK, June 19 - A federal judge heard arguments that Manville Corp's chapter 11 reorganization plan, which was confirmed in December, should be thrown out. During a four-and-a-half hour hearing, U.S. District Judge Whitman Knapp heard arguments in five different appeals. Whitman took the issues under advisement and will rule at a later date. Key challenges were made by a group of Manville shareholders, who claim they were not adequately represented during the bankruptcy proceedings and that a 2.5 billion dlr fund to pay victims of asbestos is overfunded. Another challenge came from a group of asbestos victims who claimed the trust fund was underfunded. Today, Manville lawyers said there have been about 54,000 claims filed by those injured by asbestos. The reorganization plan also sets up a trust fund, with initial funding of 125 mln dlrs, to pay for property damage claims. Additional funds will be available if needed. Manville said there are currently 9,500 property damage claims filed. Manville filed for bankruptcy in 1982 and its reorganization plan was approved by all parties except the common stockholders. The stockholders objected to the proposal because it would greatly dilute the value of their holdings. The plan would have the effect of converting every eight shares of common stock into just one share. Manville lawyers today criticized shareholder groups for further delaying the execution of the bankruptcy plan. Herbert Edelman, one of Manville's lawyers, pointed out that many thousands of victims and creditors were still awaiting payments and that many victims had already died. He also pointed out that the bankruptcy court had found Manville to be insolvent. "They (shareholders) want the plan put aside to get that nebulous value that may be down the road," Edelman said. Common shareholders claim they were not adequately represented because U.S. Bankruptcy Judge Burton Lifland refused requests to divide the equity holders committee into two separate groups, one repesenting common shareholders and the other preferred stock shareholders. During confirmation hearings of the plan, the equity committee's lawyer George Hahn walked out of the hearing, saying he could not represent both groups. The equity holders committee was then abolished. An unofficial committee representing 10 pct of the company's stock was present at the confirmation hearings. However, lawyers for that committee did not present evidence or cross examine witnesses. During today's hearing Paul Gonson, a Washington lawyer representing the Securities and Exchange Commission, told Judge Knapp that the agency was also concerned that the shareholders did not have adequate representation. Knapp said the unofficial committee was represented by the New York law firm of Kronish, Lieb, Weiner and Hellman. "They have one of the best law firms in town," Knapp said. Reuter 19-JUN-1987 20:08:04.39 surinamenetherlands RM f2663 reute r f AM-surinam-court 06-19 0082 Paramaribo, june 19 - surinam may bring the dutch government before the world court of justice in the hague to press for a resumption of a 100 mln dlr aid program cut off in 1982, prime minister jules wijdenbosch said. Wijdenbosch told a news conference tuesday his government may request the court to make a judgment on the aid, suspended after the december, 1982 murders of 15 surinamese opposition leaders while they were in government custody. Reuter 19-JUN-1987 23:10:31.25 interest RM f2728 reute f f BC-HK-SHANGHAI-BANK,-STA 06-19 0013 ****** 29-JUN-1987 00:08:35.14 qatar F f0016 reute u f BC-QATAR-TAKES-OVER-CABL 06-29 0109 DOHA, June 29 - Qatar will today take over the franchise of Cable and Wireless Plc (CAWL.L) in the emirate through the newly-created Qatar General Telecommunications Corporation (QTELC). Cable and Wireless, which has operated in Qatar since 1951, will second expert staff and provide technical and computer services under agreements signed with QTELC. Cable and Wireless manager Colin Davies told Reuters "Basically we have been here in a franchise situation for the last 36 years and the government has now decided they want to have a bigger role and that is, of course, a sovereign right." REUTER 29-JUN-1987 00:18:54.04 money-fx venezuela RM f0024 reute u f BC-VENEZUELA-PROBES-ALLE 06-29 0106 CARACAS, June 28 - Banking authorities and police are investigating an alleged fraud by the second largest trading house in the Caracas free foreign exchange market, Finance Minister Manuel Azpurua told reporters. The Superintendency of Banks and the Technical and Judicial Police have both begun probes of Cambio la Guiara, Azpurua said on Friday night. Police said the owners of the firm, Mario Muggia and his brother Luigi Muggia, have left Venezuela. Cambio la Guiara operated in part on the "parallel market" in which traders buy and sell dollars among themselves. The Venezuelan central bank on June 17 suspended the licences of all 21 foreign exchange operators in the parallel market, blaming their speculation for the constant rise in the value of the U.S. Dollar here. Juan Domingo Cordero, vice-president of the Caracas Stock Exchange and the owner of a foreign exchange trading house, said on Friday he had begun legal action against Cambio la Guiara for issuing him four checks without funds for a total amount of almost one mln dlrs. The Cambio la Guiara exchange house had operated in Venezuela for more than 20 years. REUTER 29-JUN-1987 00:29:32.06 japan F f0034 reute u f BC-TOKYO-STOCKS-OUTLOOK 06-29 0106 By James Kynge, Reuters TOKYO, June 29 - Prospects for Tokyo stocks are mixed this week with investors trying to figure out the future of the yen/dollar exchange rate and digest the implications of OPEC's latest accord on crude output and pricing, brokers said. They said the market should extend the dull trend it has been in since the 225-share index fell rapidly from the record close at 25,929.42 on June 17. It ended at 24,902.72 on Saturday and fell further this morning to close at 24,707.68 in an uncertain reaction to the weaker yen and the weekend OPEC accord. Brokers said attention could focus more on the cheaper, less well-known stocks in the exchange's first and second sections, which were generally showing more resilience. The second section index, in contrast to the first, closed at a record 2,404.64 on June 26, surpassing the peak set on June 17 of 2,401.71. "Probably shares of companies involved in the domestic economy are a good bet," said a broker at Daiwa Securities Co Ltd. He said his observation was based on figures showing that business activity in Japan is booming. The government said on Friday that department store and supermarket sales rose 7.5 pct in May from a year earlier, while orders received by Japan's 50 major construction firms in the same month were up 7.6 pct year on year. Brokers expected more such figures, but said many stocks linked to domestic demand remain overpriced. "They are hard to find, but companies with an attractive niche in the domestic economy, unaffected by currency movements, are the best bet," said a broker at a foreign securities house who declined to be identified. But sharp rises in money supply and voracious domestic consumption are stirring inflation fears. The consumer price index rose 0.2 pct in May from April, the third consecutive month on month increase. Although investors are not unduly worried about inflation, which erodes the real value of stock holdings, they say rising prices arouse concern that interest rates may climb. The recent market advances have been assuming a further cut in Japan's 2.5 pct discount rate. Such assumptions have now died, discouraging investors, brokers said. If oil prices rise, the stock market in Japan could suffer a downturn as higher production costs stir inflation. But share prices of Japan's oil importing companies may also firm, brokers said. "I have never been able to justify this because it should mean that the cost of importing rises," said a broker at Yamaichi Securities Co. "It just always happens." Export-oriented companies may continue their recent rally if the dollar climbs against the yen. But prices of many blue chip exporters have risen fast over the last two weeks, making them look less attractive, brokers said. However, if the dollar falls to about 140 or 138 yen, the market index may rally, brokers said. A lower dollar could damp down rising capital outflows into dollar investments from Japan's stock and bond markets, brokers said. And as the yen/dollar rate is supposed to reflect the balance of trade between the United States and Japan, a lower dollar would bring more pressure on Japan to expand its demand for American imports by stimulating its local economy, brokers said. "If the dollar falls, buy domestic, if it rises, maybe buy a few exporters," said one foreign broker. REUTER 29-JUN-1987 01:18:34.87 ship kuwaitiraniraqbahrainkuwaitomanqatarsaudi-arabiauae Y f0062 reute u f BC-KUWAIT-SAYS-IT-HAS-FU 06-29 0113 KUWAIT, June 29 - Kuwait, whose shipping has come under repeated attack by Iran, has the full support of Saudi Arabia and other Gulf allies, a senior government official said. Cabinet spokesman Abdul-Aziz al-Otaibi, quoted by the Kuwaiti news agency KUNA yesterday, said Foreign Minister Sheikh Sabah al-Ahmed al-Sabah had told cabinet he had found "complete support...At this delicate phase" during visits to Gulf Cooperation Council (GCC) states. The GCC, an economic and military alliance which has generally supported Iraq over Iran, comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. REUTER 29-JUN-1987 01:54:25.29 crude australia F f0077 reute u f BC-SANTOS-SAYS-IT-HAS-SI 06-29 0099 ADELAIDE, June 29 - Santos Ltd <STOS.S> said it had made a significant oil discovery at its Mawson One well in the Moomba block of the Cooper Basin, South Australia. It said the well flowed oil from sands at an average rate of 1,440 barrels per day from 2,131 to 2,135 metres through a 6mm choke. Santos said the well was cased and suspended pending further evaluation. But it said the proximity of the discovery to existing production facilities at the Gidgealpa South field would allow Mawson One to be brought into production rapidly. Santos has a 60 pct stake in the block, <Delhi Petroleum Pty Ltd> has 30 pct and <South Australian Oil and Gas Corp Pty Ltd> has 10 pct. REUTER 29-JUN-1987 01:58:51.41 west-germany F f0080 reute b f BC-BFG-<BKFG.F>-GROUP-NE 06-29 0100 FRANKFURT, June 29 - Year ended December 31, 1986. Group net profit 45.2 mln marks vs 35.2 mln. Interest surplus 1.09 billion marks vs 1.21 billion. Commission surplus 405.5 mln marks vs 391.7 mln. Extraordinary earnings 784.4 mln marks vs 82.6 mln. Published risk provisions 865.9 mln marks vs 366.7 mln. Balance sheet 59.89 billion marks vs 63.67 billion. Full name is Bank fuer Gemeinwirtschaft AG. Note. Figures revised from provisional figures issued in March. Extraordinary earnings linked to sale of subsidiaries. REUTER 29-JUN-1987 01:59:10.93 west-germany F f0081 reute u f BC-BFG-PROFIT-DIPS-IN-FI 06-29 0103 FRANKFURT, June 29 - Bank fuer Gemeinwirtschaft AG's <BKFG.F> (BfG) partial operating profits in the first four months of this year were lower than in the same period in 1986, management board chairman Thomas Wegscheider said. But the balance sheet total at the end of May was four pct higher than one year earlier as savings continued to flow into the bank, he told the annual press conference. BfG parent bank partial operating profits halved to 166 mln marks in 1986 from 311 mln in 1985, with the balance sheet falling to 48.80 billion marks from 49.02 billion. Wegscheider declined to give a forecast for the full year, and noted that the first four months of this year were not comparable with the 1986 period as first quarter 1986 had been extremely successful for the bank. The general banking environment this year was not easy, with the interest margin under pressure, securities business suffering from markedly lower bourse turnover than last year and sluggish credit demand, he said. "As far as the specific BfG environment is concerned, we note a clear atmospheric improvement, which however is being reflected in the figures only slowly," he added. Wegscheider said the bank was recovering from speculation about its ownership, which had unnerved many customers last year, and from the financial crisis involving the Neue Heimat housing group linked to BfG's former trade union owners. Insurer Aachener und Muenchener Beteiligungs-AG <AMVG.F>, AMB, acquired 50 pct plus one share of BfG late last year. Wegscheider said that earnings from trading on the bank's own account in 1986 had been a little higher than partial operating profits, but had performed better in the first half. Following the AMB acquisition, BfG sold its 25.01 pct stake in <Volksfuersorge Deutsche Lebensversicherung AG>, its 74.9 pct in <BSV Bank fuer Sparanlagen und Vermoegensbildung AG> and five pct of <Allgemeine Hypothekenbank AG>. These sales produced extraordinary earnings of 700 mln marks, with parent bank earnings from profit transfer agreements rising to 494.18 mln marks in 1986 from 54.24 mln in 1985, and other earnings including writing bank risk provisions rising to 317.95 mln marks from 65.67 mln. Wegscheider said most of the extraordinary earnings went into risk provisions. Total risk provisions, undetailed, were more than twice as high as in 1985, Wegscheider said. Published group risk provisions rose to 865.9 mln marks from 366.7 mln. But the share of credits to problem countries covered by risk provisions was still below 50 pct at BfG, he said. The BSV Bank stake sale was one of the main factors behind a 3.8 billion mark drop in the group balance sheet in 1986. Wegscheider said the re-organization of BfG, planned before the AMB acquisition and involving a decentralization, would occupy much of BfG's energies this year. BfG and AMB were also looking at ways of cooperating in sales of services. REUTER 29-JUN-1987 02:02:24.21 south-korea RM V f0087 reute u f BC-SOUTH-KOREAN-RULING-P 06-29 0064 SEOUL, June 29 - South Korea's ruling party announced a reform package which includes a recommendation for direct presidential elections. There was no immediate reaction from President Chun Doo Hwan but Democratic Justice Party (DJP) chairman Roh Tae-woo, who unveiled the reforms, vowed to resign if they were rejected. Roh, whose confirmation as government candidate to succeed Chun sparked weeks of massive demonstrations around the country, said he would withdraw his candidacy and quit his DJP post if Chun failed to accept the package. "I have reached the conclusion that I cannot but choose the direct presidential election system to overcome social confusion and achieve national compromise," Roh said. There was no immediate indication of how soon Chun would react to Roh's proposals or whether he was involved in their formulation. The president, who took office in 1980 following a military coup, is due to step down next February after elections which had tentatively been set for December. Under Roh's package, Chun would remain president until his successor was chosen by direct elections. At present, the president is chosen through an electoral college system which the opposition says is stacked in favour of the DJP. Among other major changes, the package offers a release of most political prisoners, a guarantee of human rights and a free press. Kim Young-sam, head of the opposition Reunification Democratic Party, said, "I wholeheartedly welcome Chairman Roh's announcement, though it was a belated measure." A Western diplomat told Reuters "It's a very substantial, very courageous move." The second surprise in Roh's proposals was an amnesty for leading dissident Kim Dae-jung, who has been banned from politics because of a suspended sentence for sedition charges. The only opposition demand which is not met by Roh's package is the RDP's insistence that Chun should step down immediately. REUTER 29-JUN-1987 02:10:49.90 usa conable RM AI f0094 reute u f BC-WORLD-BANK-SEEKS-MORE 06-29 0107 NEW YORK, June 29 - The World Bank is prepared to play a more aggressive role in promoting Third World development and easing the debt crisis, bank president Barber Conable said. "We must be realistic about the immediate prospects for an expansion in voluntary commercial bank lending, with the World Bank playing an even more vigorous role in the debt crisis," Conable said in an interview with Newsweek magazine. Conable said the bank must step in to help relieve the debt crisis, which has prompted a number of U.S. Commercial banks to write off a portion of their Third World loans. "Our plans include initiatives on the debt front, as well as greater emphasis on debt-equity swaps and the promotion of private investment in Third World countries through our affiliate, the International Finance Corporation," Conable said. "The bank is primarily a development institution, not a debt-management agency. But debt must be managed effectively or it hampers development." Conable defended his reorganisation plan for the bank, which he said was aimed at improving efficiency and limiting bureaucracy. He added environmental considerations would play a larger role in the evaluation of proposed projects. REUTER 29-JUN-1987 02:43:27.89 crudefuelnaphtha singaporejapan opec RM V f0107 reute u f BC-OIL-MARKETS-SHOW-RESP 06-29 0110 SINGAPORE, June 29 - OPEC has shown itself to be in control of the world oil situation with its speed in hammering out a pact to limit crude oil output to 16.6 mln barrels per day (bpd) for the rest of 1987, oil traders said. They said market respect for the cartel has increased since it announced Saturday that it would cut fourth quarter output to 16.6 mln bpd from the 18.3 mln agreed in December. "There are light oversupplies now, but OPEC ... Has ensured there will be no oversupplies in the fourth quarter, and is in effect putting pressure on end-users," a European crude oil trader said. In Tokyo, one oil analyst said, "There's no reason to expect a weak market from now on." A Japanese oil trader, also based in Tokyo, said, "We thought OPEC would have difficulty agreeing on fourth quarter production so the market will react very bullishly." Traders in Singapore said that while there has been only a slight increase so far in spot quotes for Dubai, a benchmark crude, they expect price increases over the next few days. August Dubai was discussed in cautious early activity at around 17.35 dlrs, above Friday's 17.15-20 range, but still below the government selling price (GSP) of 17.42. Even prices of light Mideast grades, such as Qatar and Abu Dhabi crudes, are expected to improve from recent weak positions, 15 to 20 cents below their GSP's. Singapore traders said sellers might now aim for GSP's at least. They said that after initial jumps, they expect prices to stabilise and hover around GSPs for the next few months. They said the Japanese oil market would be most affected and Japanese end-users would need to rebuild stocks for winter requirements before October. Prices are most likely to rise in the fourth quarter on European and U.S. Stockbuilding for winter, they added. "There's no doubt consumption will be higher than production by the fourth quarter and stocks are not that high," said an international trader in Tokyo. Another Tokyo trader was less bullish, "For sure there will be some shortage but it depends on how much they (OPEC members) cheat." A Singapore trade source said, "There is enough cheating and leakage in the OPEC sales system to convince traders there is no need to worry about shortages." Other traders said the questionable Iraqi production level, after Iraq's rejection of its assigned quota, was a bearish factor to be considered. Traders also said end-users now would buy as much as possible on term contracts and buy spot only when the market cooled from its initial reaction to the OPEC agreement. Spot product prices in Singapore were little changed in thin early discussions, with naphtha and middle distillates quiet on minimal buying interest. Fuel oil products were steady to firm on light demand and tight prompt supplies, dealers said. REUTER 29-JUN-1987 02:56:57.68 usa F f0118 reute u f BC-NBC-WRITERS,-PRODUCER 06-29 0097 NEW YORK, June 29 - Producers, news writers, editors and technicians began a strike at the National Broadcasting Co (NBC), leaving management employees to do their jobs. The strike by members of the National Association of Broadcast Employees (NABET), representing 2,800 of NBC's 8,000 workers, began at 12:01 A.M. (0401 GMT) after the network imposed a contract which the union said was unacceptable. The union said its main objection to the contract was that it permitted NBC to employ additional part-time workers. The average salary of workers represented by NABET is 65,000 dlrs a year. Union officials said management was being intransigent and blamed General Electric <GE>, which purchased NBC and its parent company RCA in 1985 in a flurry of communications company takeovers. The strike is the first for NBC since 1976. The two sides said they have set no time to meet again. REUTER 29-JUN-1987 03:25:40.09 crude japaniraqiranuaeqatarkuwaitsaudi-arabia opec RM V f0158 reute u f BC-FAR-EAST-TRADERS-EXPE 06-29 0108 TOKYO, June 29 - OPEC's agreement to limit output to 16.6 mln barrels per day (bpd) for the rest of the year should boost spot prices and enable the group to raise its official reference price to 20 dlrs a barrel in January from the current 18 dlrs, Far East oil industry sources said. "Fundamentally, the market situation is bullish and the official price will be 20 dlrs in January," a Japanese refiner said. The sources said that in spite of over-production by OPEC members such as Iraq, the United Arab Emirates, Kuwait and Qatar, demand should exceed supply by the fourth quarter. Spot oil prices surged on Friday in late U.S. Trading as the market anticipated an OPEC agreement on second-half 1987 output. In early Tokyo trade, levels were firm at 17.30 dlrs for Mideast Dubai cargoes loading next month and 19.00 dlrs for U.K. Brent, traders said. They said they expect more foreign crudes to be sucked into the U.S. Market as the benchmark crude West Texas Intermediate (WTI) trades at around 20.30 dlrs. "With WTI at 20, 21 or 22 dlrs, U.S. Refiners will import Mideast and Far East crudes and this will strengthen those grades further," said a Japanese oil trader. Some Tokyo traders were cautious about whether thU spot market has further upward potential in the short term, having risen strongly on the OPEC news on Friday. "You could certainly argue that if New York rose on that basis, there's no reason for prices to go up again today," said one international oil trader in Tokyo. "But I think if there's any sign of a dip, it will be bought back up again pretty quickly," he added. One oil industry analyst concurred, "There is no reason to expect a weak market from now on." He said he expected OPEC to raise prices to 20 dlrs when it meets on December 9. Oil sources said spot prices are unlikely to surge strongly in the next few months due to cheating by some OPEC members and the likelihood that Saudi Arabia will act as swing producer to maintain steady prices. Iraq is currently producing around two mln barrels per day compared to its second-half quota of 1.54 mln, they said. Its export capability will rise to 2.5 mln bpd when a new pipeline through Turkey, comes onstream in or around September. Qatar is said to be achieving sales of around 350,000 bpd, against its OPEC-assigned quota of 299,000, by discounting up to 20 cents a barrel from official prices, the sources said. Iran, the United Arab Emirates and Kuwait are also cheating on the OPEC agreement with over-production and effective price discounts through counter-purchases, industry sources said. But they mostly agreed that Saudi Arabia will unofficially act as swing producer, cutting production to compensate for higher output by other members or boosting output if spot prices rise too high too fast. Saudi Arabia has a floating oil stockpile of 40 to 50 mln barrels. "Saudi Arabia wants oil price stability so the stockpile may be utilized to cool down the market if it rises too much," an oil industry analyst said. REUTER 29-JUN-1987 03:40:00.72 cocoa japan icco T f0182 reute u f BC-JAPAN-TO-RATIFY-1986 06-29 0098 TOKYO, June 29 - Japan will ratify the 1986 International Cocoa Agreement (ICCA), with effect from July 1, and will renew its membership in the International Cocoa Organisation (ICCO), Foreign Affairs Ministry officials said. They said Japan would participate in an ICCO meeting on July 13 in London to revise ICCO buffer stock policy. The 1986 ICCA has been in effect since January 1987. Government approval to participate in the ICCO was delayed by parliamentary debate over the sales tax issue, the officials said. REUTER 29-JUN-1987 03:45:34.21 acq F f0188 reute f f BC-Willis-Faber-says-it 06-29 0013 ****** 29-JUN-1987 03:45:44.04 usajapan F M C f0189 reute u f BC-KOBE-STEEL,-U.S.-FIRM 06-29 0088 TOKYO, June 29 - <Kobe Steel Ltd> said it has agreed to supply technology to manufacture thin-walled copper tubing used in air conditioners and refrigeration units to <Halstead Industries Inc> in Zelienople, Pennsylvania. Total demand for copper tubing in the U.S. Is 25,000 tonnes a month, of which 5,000 is for the thin-walled type, Kobe said in a statement. The two companies are studying joint partial production of Kobe's thin-walled copper tubing in the U.S. REUTER 29-JUN-1987 03:48:03.30 lebanon RM f0195 reute b f BC-LEBANESE-BANK-STAFF-S 06-29 0100 BEIRUT, June 29 - Lebanese bank employees went on a one-day strike to draw attention to the fate of three Central Bank colleagues missing, believed kidnapped, since 1985. The strike, which shut the foreign exchange market and banks across the country, was called by the Central Bank Employees' Union and the Bankers' Association, which groups more than 80 Lebanese banks. The three missing Christian employees are believed to have been kidnapped while crossing from Christian East Beirut to Moslem West Beirut nearly two years ago. REUTER 29-JUN-1987 03:49:04.80 uk F f0196 reute u f BC-WPP-GROUP-RAISES-PROP 06-29 0093 LONDON, June 29 - <WPP Group Plc>, which on Friday secured agreement for its bid for <JWT Group Inc> by increasing its offer, said it would raise its planned rights issue to raise 213 mln stg instead of 177 mln to finance the deal. On Friday the two groups said they had agreed to merge after WPP raised its cash price to 55.5 dlrs a share from 45.0 dlrs, valuing JWT at 566 mln dlrs. Under the new rights proposals, WPP shareholders could apply for new ordinary shares at 875p each on a two-for-one basis. The issue has been underwritten. The remainder of the purchase price would come from a loan facility of up to 260 mln dlrs. The issue and the proposed acquisition of JWT remain conditional on the approval of shareholders. The original proposal for the rights issue was on the basis of five new shares for every three held. The revised version would involve the issue of up to 24.3 mln new shares, representing 65 pct on the enlarged fully diluted share capital. WPP shares were quoted at 0757 GMt unchanged at 10.70 stg. REUTER 29-JUN-1987 03:52:34.97 crude saudi-arabia hisham-nazer opec Y f0199 reute u f BC-SAUDI-OIL-COMPANY-GET 06-29 0089 RIYADH, June 29 - The acting governor of Saudi Arabia's state-owned oil company, Petromin, Jamal Hassan Jawa, has retired at his own request, oil industry sources said. They said Ali Ibrahim Rubaishi, head of organisation planning in Petromin, would take over as acting governor. Jawa held the post since his predecessor, Abdul-Hadi Taher, left in a major oil industry shake up last December. The sources said Rubaishi had not been expected to hold the post permanently. The government removed Taher and Oil Minister Ahmed Zaki Yamani from their posts late last year in a move which industry sources said was aimed at coming to grips with a buyers' oil market. The two men had run the Saudi oil industry for more than 20 years. Industry sources said that despite huge resources, Saudi Arabia had been unable to mould an oil marketing strategy tuned to the competitive realities of the 1980s glut. Hisham Nazer, who replaced Yamani, successfully led an OPEC-engineered return to fixed oil prices of 18 dlrs a barrel last December. Nazer is believed to be reviewing Saudi oil operations which could lead to a thorough overhaul in the way Saudi Arabia does business, the sources said. The sources had said possible candidates for the governor's job include Prince Abdul Aziz Ibn Salman Ibn Abdul Aziz, who earlier ran a research center at Saudi Arabia's University of Petroleum and Minerals, and former Deputy Planning Minister Faisal Beshir. They also list Abdulla Bakr, President of the University of Petroleum and Minerals, economist Ali Jonahi, Ahmed Shinawi, and Zuheir Masoud, director of Jeddah Islamic Port. REUTER 29-JUN-1987 03:53:33.44 crude uaeegypt opec Y f0200 reute u f BC-UAE-OIL-MINISTER-OTEI 06-29 0105 CAIRO, June 29 - UAE Oil Minister Mana Said al-Oteiba arrived in Alexandria last night for a visit to Egypt, the national Middle East News Agency (MENA) said. It said Oteiba, who had just attended the OPEC ministerial meeting in Vienna, would stay for several days but gave no details. Non-OPEC Egypt has pledged to restrain output to support OPEC's moves to boost oil prices. Oil Minister Abdel Hadi Kandeel last week said Egypt plans to leave its oil production of 870,000 barrels per day unchanged for the next five years. Egypt is able to produce up to one mln bpd. REUTER 29-JUN-1987 03:54:49.46 acq usa F f0204 reute b f BC-WILLIS-FABER-BIDS-FOR 06-29 0056 LONDON, June 29 - Willis Faber Plc <WIFL.L> will make an agreed 302.6 mln stg offer for fellow insurance broker <Stewart Wrightson Plc>, a joint statement said. The offer would be on the basis of three Willis shares for every two in Stewart, valuing each Stewart share at about 655.5p. Willis already owns 2.05 mln shares, or 4.62 pct, and has received acceptances from Stewart's directors for a further 247,469 shares. Full acceptance of the offer would involve the issue of 66.2 mln new Willis shares, or 28.2 pct of the enlarged total. The companies said the proposed merger would bring together businesses that were largely complementary. Both believed the combination would permit more effective competition throughout the world and enahnce the service provided to clients. Following the merger, the two companies saw significant opportunities for growth in brokerage income and considerable scope for improved operating efficiency. Willis shares were suspended on Friday at 437p. When trading restarted they dropped sharply to 393p. Stewart Wrightson shares rose to 576p at 0835 gmt from a suspension price of 499p. REUTER 29-JUN-1987 03:55:30.16 new-zealand RM f0206 reute u f BC-N.Z.-OPPOSITION-PARTY 06-29 0094 WELLINGTON, June 29 - New Zealand's opposition National Party said it would cut personal and business taxes and would not regulate or control interest rates if returned to power. The economic strategy was unveiled by party leader Jim Bolger one day before prime minister David Lange announces the date of general elections, widely expected to be August 15. The National Party's tax policies included the abolition of death and gift duties and the removal of indirect taxes on basic food and doctors' fees. The most recent opinion poll, taken on June 20, gave Labour a 26 point lead over National or eight points more than a month earlier. National said that under its administration the New Zealand dollar would find its level with "complementary fiscal and monetary policies." The party did not elaborate. Controversy over National's economic policy erupted in March when former prime minister Robert Muldoon said the party had adopted a policy of a managed exchange rate. Bolger said then that the National Party would continue to float the dollar. Since the dollar was floated by the Labour Party in March 1985 it has risen about 34 pct, cutting the export incomes of farmers, who are traditional National Party supporters. The party said tight monetary policies alone would lead to unrealistic exchange rates which would be out of line for exporters unless they were supported by a low government borrowing requirement, a shrinking government sector and positive growth. It aimed to keep aspects of deregulation which have benefitted New Zealanders while cutting government spending, unemployment, interest rates, inflation and tax. The National Party intends to privatise totally the <Bank of New Zealand>, <Development Finance Corporation>, <Tourist Hotel Corporation>, <Petrocorp>, <State Insurance> and <Government Life Office>, the party said. Other candidates for privatisation, such as <Air New Zealand Ltd>, would be considered when the share market could absorb them. REUTER 29-JUN-1987 04:00:12.83 crude norway opec RM V f0218 reute b f BC-NORWAY-EXTENDS-7.5-PC 06-29 0113 OSLO, June 29 - Norway will extend its 7.5 pct cutback in planned North Sea oil output in support of OPEC from July 15 until the end of this year, Oil Ministry spokesman Egil Helle told Reuters. "We took a very positive view of the OPEC meeting in Vienna," he said. "The accord reached there means stability in the oil market and we shall continue making our contribution." The cuts, originally brought in from February 1, would probably be officially approved on July 10 by parliament, Helle said. The ministry had written to Norway's oil companies and would now discuss with them how best to implement the cuts. OPEC agreed this weekend in Vienna on an output ceiling of 16.6 mln barrels per day (bpd) for the rest of 1987 and retained the fixed prices that were set in its December accord based on an 18 dlr per barrel reference point. OPEC's first half 1987 output ceiling was 15.8 mln bpd, and it's December pact had provisionally set a third quarter ceiling of 16.6 mln bpd, rising to 18.3 mln in the fourth quarter. Norway, which pumps around one mln bpd from its offshore fields, previously said it would continue its output curbs from planned production for the rest of the year if OPEC remained within its December accord on output and prices. Norway's oil production rose 10 pct to an average of around 840,000 bpd in 1986. Since then it has risen to around one mln bpd, and is expected to reach about 1.5 mln bpd by 1995. The 7.5 pct cut from planned production implemented since February reduced Norway's oil output by about 80,000 bpd. Norway's Oil Minister Arne Oeien, currently in Iceland for a meeting of Nordic ministers, has made no official statement on the latest oil production cutbacks. Over the past year several other leading non-OPEC producers, including the Soviet Union, Mexico, China, Malaysia and Egypt have also pledged support for OPEC's bid to keep prices stable. Norway decided on the initial round of cuts following an OPEC agreement last December which boosted oil prices to around 18 dlrs per barrel from around 14 to 15 dlrs last December. Norway relies on oil for about 40 pct of its total export earnings and was hit hard by the collapse in the oil price during the first half of 1986. But firmer oil prices since then have brought some stability to the economy and helped narrow the foreign trade deficit. Norway's North Sea neighbour Britain has consistently refused to cooperate with OPEC output cuts saying it is up to the producing oil companies to set the levels of production. REUTER 29-JUN-1987 04:21:42.77 acq usa F f0244 reute b f BC-BRENT-TO-BUY-LONRHO-D 06-29 0102 LONDON, June 29 - <Brent Walker Group Plc> said it had agreed to buy the group of companies comprising Lonrho Plc's <LRHO.L> Metropole Casino Division, together with a freehold in central London, for 121.55 mln stg. Payment will be in cash on completion except for three mln stg payable on December 1, 1988. Brent said it also proposed to raise about 126 mln stg net through the issue of 131.67 mln convertible shares at one stg each. The shares can be converted between 1990 and 2002 at the rate of four ordinary shares for every 15 convertibles held. On full conversion, the issued ordinary share capital of the company would increase by some 64 pct. <Birdcage Walk Ltd>, a company controlled by the Walker family, owns 20.68 pct of the shares and is entitled to 27.2 mln convertible shares under the offer. The trustees had indicated that it intended to sell enough of the convertibles, nil paid, to enable it to take up the remainder. Brent would buy the casino companies and the freehold of 45, Park Lane in London. Under the arrangements, it would also arrange for the repayment of 6.45 mln stg in inter-company debt. Brent Walker shares firmed sharply on the announcement to 385p from 353p at Friday's close, while Lonrho also firmed, to 275p from 265.5p. REUTER 29-JUN-1987 04:39:30.05 interest japan RM AI f0261 reute u f BC-BANK-OF-JAPAN-DETERMI 06-29 0108 TOKYO, June 29 - The Bank of Japan bought 100 billion yen in certificates of deposit (CDs) via repurchase agreements today to show its determination to maintain an easy money policy, central bank officials said. "Today's CD buying operation was designed to seek an announcement effect, in which we would reassure the market of the fact that we have not changed our policy stance," a senior central bank official told Reuters. The bank also bought 400 billion yen in two-month commercial bills to smooth out tight credit conditions in the interbank market today, the officials said. The central bank was concerned about growing market expectations of higher interest rates, which were in part responsible for the recent plunge in stock and yen bond prices, the officials said. But money traders said the market generally shrugged off the bank's CD operation because it was small and at a rate far below prevailing market rates. The rate on the key three-month CDs in the primary market was 4.08/00 pct, while the bank's bid was 3.75 pct, they said. The bank's bill buying operation also had little impact because it was regarded as a routine operation, they said. The money traders said they regarded the central bank's CD buying operation as simply a gesture to live up to Japan's pledge to guide interest rates lower and stimulate the economy. "We did not expect the central bank to ease its credit grip any further," a bank manager said, adding that the prevailing market expectation of higher rates will remain. "If this is the case, the three-month CD rate will stay above four pct for the time being," he said. REUTER 29-JUN-1987 04:44:17.28 interest japan RM AI f0274 reute b f BC-BANK-OF-JAPAN-TO-SELL 06-29 0105 TOKYO, June 29 - The Bank of Japan will tomorrow sell 1,200 billion yen in bills from its holdings to help absorb a projected money market surplus of 2,100 billion, money market traders said. Of the total, 800 billion yen will yield 3.6004 pct on sales from money houses to banks and securities houses in 34-day repurchase agreements maturing on August 3. The other 200 billion yen will yield 3.6003 pct in 43-day repurchase accords maturing on August 12. The remaining 200 billion yen will yield 3.6503 pct in 50-day repurchase agreements maturing on August 19. The repurchase agreement yields compare with the 3.5625 pct one-month commercial bill discount rate today and 3.6250 pct on two-month bills. They attributed the projected surplus mainly to 1,900 billion yen of government tax allocations to local governments and public bodies. REUTER 29-JUN-1987 04:48:15.75 cpi RM f0282 reute f f BC- 06-29 0014 ****** 29-JUN-1987 04:48:35.27 japan F f0283 reute u f BC-SONY-TO-ISSUE-UNSECUR 06-29 0105 TOKYO, June 29 - Sony Corp <SNE.T> will issue a 75 billion yen 15-year unsecured convertible bond through public placement mainly in Japan, a company spokesman said. Co-lead managers are Nomura Securities Co Ltd <NMSC.T>, Daiwa Securities Co Ltd <DSEC.T>, Yamaichi Securities Co Ltd <YSEC.T> and Nikko Securities Co Ltd <NIKT.T>. Coupon and conversion price for the par-priced bond maturing on September 30, 2002 will be set at its board meeting to be held in late July. Payment is due on August 17. U.S. And Canadian residents are excluded from subscribing. REUTER 29-JUN-1987 04:49:17.57 earn japan F f0284 reute u f BC-RICOH-CO-LTD-<RICT.T> 06-29 0052 TOKYO, June 29 - Group shr 24.20 yen vs 37.42 Net 10.95 billion vs 15.46 billion Pretax 25.25 billion vs 31.15 billion Operating 28.39 billion vs 31.73 billion Sales 592.37 billion vs 593.86 billion NOTE - No forecast for current year REUTER 29-JUN-1987 04:56:42.17 usajapan F f0292 reute u f BC-JAPAN-TO-HELP-U.S.-ON 06-29 0116 TOKYO, June 29 - Japan has agreed to help the United States strengthen anti-submarine defences after illegal high-technology Japanese exports significantly damaged mutual security, U.S. Defence Secretary Caspar Weinberger said. Weinberger told a press conference that exports of Japanese machines designed to make Soviet submarines quieter and harder to detect had been a serious blow. But he said he was encouraged by the punishment dealt to Toshiba Machine Co, a subsidiary of Toshiba Corp <TSBA.T>, for the illegal exports, and by Prime Minister Yasuhiro Nakasone's assurances that action would be taken to keep it from happening again. The government has barred Toshiba Machine from exporting to Communist countries for a year and said it intends to strengthen and expand its export control system. Weinberger gave no details of the anti-submarine program. In his talks with Japanese Defence Minister Yuko Kurihara, he said, he made a pitch for American companies seeking to build Japan's new fighter aircraft for the 1990's. "I assured Minister Kurihara that I support his plans to increase Japanese air defence capabilites and that I believe American aircraft can do this," he said. The Japanese industry argues it should develop the fighter plane on its own. REUTER 29-JUN-1987 05:00:38.09 japanaustralia F f0299 reute u f BC-MAZDA-SIGNS-AUSTRALIA 06-29 0101 TOKYO, June 29 - Mazda Motor Corp <MAZT.T> has signed an agreement to import coal from <Coalex Pty Ltd> of Australia through Sumitomo Corp <SUMT.T>, a Mazda spokesman said. Under the agreement, Mazda will annually import 144,000 tonnes of Australian coal worth about nine billion yen. The coal will be used as fuel for Mazda's energy centre, due to start operations in November at its main plant in Hiroshima in western Japan, he said. He declined to specify the term of the contract, but added that such contracts are usually for long periods. REUTER 29-JUN-1987 05:00:46.29 T f0300 reute r f BC-PARIS-SUGAR-OPEN-POSI 06-29 0022 - Position of june 26 - Aug 12414 Oct 13929 Dec 1403 Mar 2901 May 482 Aug 716 Total 31845 29-JUN-1987 05:00:59.04 RM f0301 reute u f BC-LUXEMBOURG-GOLD-FIXIN 06-29 0022 LUXEMBOURG GOLD FIXING - JUNE 29 Standard bar 446.30 dlrs per oz (441.25 dlrs) One kilo ingot 545,750 Lux francs (539,500 Lux francs) 29-JUN-1987 05:01:04.59 RM f0302 reute b f BC-FRANKFURT-EXCHS-1100 06-29 0007 FRANKFURT EXCHS 1100 - JUNE 29 us 1.8270/80 29-JUN-1987 05:01:32.34 RM C M f0303 reute u f BC-ZURICH-GOLD-1100---JU 06-29 0020 ZURICH GOLD 1100 - JUNE 29 pool 444.50-447.50 (444.00-447.00 at opening) interbank 445.70-446.20 (445.50-446.00 at opening) 29-JUN-1987 05:01:37.03 T f0304 reute u f BC-PRS-PARIS-SUGAR-KERBS 06-29 0008 PRS PARIS SUGAR KERBS - JUNE 29 87 oct 1155/60/65P 29-JUN-1987 05:02:33.15 C G L M T RM f0306 reute b f BC-LONDON-DOLLAR-FLUCTUA 06-29 0027 LONDON DOLLAR FLUCTUATIONS 1000 - JUNE 29 STG 1.6013/23 DMK 1.8270/80 SFR 1.5170/80 DFL 2.0565/75 FFR 6.0950/1000 YEN 146.20/30 LIT 1324/1325 BFC 37.92/95 29-JUN-1987 05:04:07.53 T f0308 reute u f BC-PRS-PARIS-SUGAR-OPG-- 06-29 0039 PRS PARIS SUGAR OPG - JUNE 29 Aug 1130/1132 ba Oct 1160/1165 ba with 1160P Dec 1180/1190 ba Mar 1222/1235 ba May 1263/1280 ba Aug 1295/1315 ba Sales at call 22 accumulative total 71 Yesterday's official turnover: 171250 steady 29-JUN-1987 05:04:23.11 thailand RM f0309 reute u f BC-THAI-MINISTER-SAYS-PR 06-29 0109 BANGKOK, June 29 - A split in the Thai government's main coalition party may prompt Prime Minister Prem Tinsulanonda to dissolve parliament soon, Interior Minister Prachuab Suntharangun said. He told reporters that Prem was considering new elections because squabbling in the Democrat Party undermined government performance and held up legislation Prem wanted passed. But Prem was reluctant to call new elections or reshuffle his cabinet because that too would be likely to result in a wobbly multi-party coalition, Prachuab said. He declined to say how soon parliament might be dissolved. The Democrats, one of four parties in the ruling coalition, have been split ever since winning 100 of the parliament's 347 seats in elections in July 1986. The current coalition was formed last August and constitutes a hefty parliamentary majority. But the Democrats' inability to work well together or with their coalition partners has made the government vulnerable to the small but more cohesive opposition. Parliament closed the first of its two annual sessions this month and is scheduled to reconvene in September. REUTER 29-JUN-1987 05:04:52.33 franceportugal RM f0311 reute b f BC-PORTUGAL-ISSUES-700-M 06-29 0115 PARIS, June 29 - The Republic of Portugal is issuing a 700 mln French franc variable-rate bond due July 1995 at 100.05 pct, lead manager Credit Commercial de France said. The issue of unsecured, unsubordinated debt will have a coupon based on three-month LIBOR plus 20 basis points. If on any interest date this is 25 pct or more above three-month Paris Interbank Offered Rates then the interest rate will be three-month PIBOR plus 30 basis points. Payment date is July 24. There is a call at par at the end of the first year and thereafter on any interest payment date. Listing is Paris and denominations are of 10,000 and 100,000 francs. Fees total 50 basis points, with 25 points for selling and 25 for management and underwriting combined including a six basis points praecipuum. The issue is rated A by Moody's. REUTER 29-JUN-1987 05:17:55.05 australia F f0326 reute u f BC-BHP-STEEL-SEES-BENEFI 06-29 0113 MELBOURNE, June 29 - The major benefits of BHP Steel International Group's big capital expenditure program should begin to be seen in its 1988 financial year ending next May 31, Broken Hill Pty Co Ltd <BRKN.S> officials said. A decline in BHP Steel's net profit to 200.02 mln dlrs in the 1987 year ended May 31, 1987, from 253.87 mln the year before, contributed to the drop in attributable group earnings to 820.27 mln dlrs from 988.20 mln. "We look forward to a 1988 year of consolidation while continuing our strong business development initiatives," BHP Steel chief executive officer David Rice told reporters. Rice said BHP Steel's capital spending in 1987 totalled 701 mln dlrs, and that total expenditure would be about 1.4 billion dlrs by the time the government's five-year Steel Industry Plan expires at the end of calendar 1988. He said the investment program, aimed at making BHP Steel both technically and commercially competitive on a world scale, was now over its peak and would begin to scale down. Operational and commissioning problems flowing from the investment program, combined with the highest levels of industrial action since the steel plan started, had contributed to the decline in 1987 earnings, he said. Rice said the industrial and production problems forced BHP Steel to import 280,000 tonnes of steel in its 1987 financial year to keep faith with customers. The new items of plant are now past their initial teething problems and talks have intensified with the unions on the industrial troubles, he said. Despite the profit drop in the 1987 year, BHP Steel International group was one of the most profitable steel producers in the world on an after-tax basis, he said. Its capacity utilisation was far higher, at 89 pct, than the current western world average of 69 pct, he added. REUTER 29-JUN-1987 05:37:18.58 ivory-coast camdessus imf RM f0355 reute r f BC-IMF-MANAGING-DIRECTOR 06-29 0110 ABIDJAN, June 29 - IMF Managing Director Michel Camdessus paid a brief weekend visit to the Ivory Coast during which he discussed the country's economic difficulties with President Felix Houphouet-Boigny. Camdessus said he wished his visit could have been in more pleasant circumstances in remarks reported by the official Ivorian daily Fraternite Matin. He added that the extremely steep fall in agricultural commodity markets had dealt a harsh blow this year to the Ivorian economy and because of this the country was experiencing a growth problem and difficulties with its international debt. Last month the Ivory Coast informed its creditors it had to suspend payments on its foreign debt, estimated at more than eight billion dlrs. Camdessus said his agency had to study the problems of the Ivory Coast but a solution depended on a coordinated effort between the country itself, the commercial banks, other governments and international finance institutions. He also disussed problems of developing countries in general with banking and government officials in Abidjan. REUTER 29-JUN-1987 05:37:57.69 interest uaebahrain RM f0358 reute u f BC-UAE-CENTRAL-BANK-CD-Y 06-29 0066 BAHRAIN, June 29 - Yields on certificates of deposit (CDs) issued today by the United Arab Emirates central bank were unchanged from those on last Monday's offer, the bank said. The one month yield was set at last week's 6-3/4 pct, while two and three month CDs also remained unchanged at 6-13/16 pct. The six month yield was set at seven pct. REUTER 29-JUN-1987 05:38:10.90 zimbabwe RM f0359 reute r f BC-ZIMBABWE-WAGE-FREEZE 06-29 0111 By Andrew Rusinga, Reuters HARARE, June 29 - Zimbabwe's temporary freeze on salaries, wages and prices will give the economy a breather, but radical economic reforms are needed to resuscitate business and attract foreign investment, economists said. They said the June 24 freeze on government, state company and private sector wages until January 1988 has postponed, rather than provided, solutions to Zimbabwe's economic problems. They urged a review of the tax system, the introduction of investment incentives, a review of foreign exchange and price controls and a check on government expenditure. These measures would aim to stimulate investment and create employment for the 100,000 school leavers annually seeking jobs. The freeze, which Finance Minister Bernard Chidzero said would check production costs and reduce the budget deficit, has been partly welcomed by business but criticised by workers whose real purchasing power has been severely eroded since 1980. The government announced the freeze amid a worsening economic crisis caused by serious drought, a budget deficit of more than one billion Zimbabwean dlrs and an acute balance of payments problem owing to debt service costs, now 357 mln U.S. Dlrs on an external debt of two billion U.S. Dlrs. The crisis has forced the country to make companies halve dividend remittances to overseas shareholders. The Zimbabwe National Chamber of Commerce supported the freeze on wages and salaries but criticised the promised stricter control of prices of goods and services. "If those companies whose costs of production increase are not allowed a price increase, profit margins will again be severely squeezed, and this would negate current government efforts to revitalise the economy," the chamber said. The Zimbabwe Congress of Trade Unions said the freeze would worsen the plight of the lowest paid workers. The union body has been campaigning for a minimum monthly wage of 277 Zimbabwean dlrs (165 U.S. Dlrs). The lowest paid now earn about 100 dollars (60 U.S. Dlrs). "Inflation is hitting hardest those in the low income bracket which demands that any economic recovery programme should be biased in their favour," the union body said. It added that the promised price freeze was "bolting the stable door when in fact the horse is gone" because prices of most basic commodities had already risen phenomenally. Both unions and business hope that the freeze heralds a return to wage bargaining between workers and employers, rather than government-regulated pay awards. Zimbabwe has, since 1980, set annual minimum wages for different sectors of the economy and awarded wage and salary increments on a sliding scale which gave higher increases to the lowest paid. REUTER 29-JUN-1987 05:39:34.85 luxembourgfrance eib RM f0364 reute r f BC-EIB-LENDS-200-MLN-FRA 06-29 0100 LUXEMBOURG, June 29 - The European Investment Bank (EIB) said it has lent 200 mln French francs to French railways Societe Nationale des Chemins de Fer (SNCF) to extend its high speed train system. It said in a statement that the loan will help finance the contruction of a 279 km track for high speed "TGV" trains between Paris and Le Mans in western France and Tours in the south west. The loan will also help pay for new trains. The EIB has already lent a total of 600 mln francs to SNCF for the high speed train system in 1985 and 1986. REUTER 29-JUN-1987 05:43:41.38 singapore RM f0371 reute r f BC-BANKS-IN-SINGAPORE-SE 06-29 0105 By Tay Liam Hwee, Reuters SINGAPORE, June 29 - Banks in Singapore are planning to further expand their treasury, securities, equities and debt instruments activities in line with global financial markets, bankers and economists told Reuters. "Banks are moving towards treasury activities because they see them as a vital link in global capital and foreign exchange markets," Clemente Escano, vice-president of Union Bank of Switzerland, said. Central to that link is the Asian Dollar Market's pool of funds, with deposits estimated at 212 billion dlrs in March. Banks are fond of booking and tapping offshore Asian Dollar Market funds here for a variety of reasons, including low taxes. New impetus has come to this market with growth of 52 billion dlrs in the year to March partly due to the liberalisation of financial markets in Japan leading to an increase in interbank activity, bankers said. Despite the slowdown in traditional loan syndications in the region, the offshore market has continued to grow as banks rebundle and securitise their assets, creating new generations of tradeable debt instruments, bankers said. Singapore's daily turnover in foreign exchange dealing has increased to 30 billion U.S. Dlrs in 1987 against 21 billion last year, according to Finance Minister Richard Hu. Susumu Sakaguchi, manager of Dai-Ichi Kangyo Bank, said the 22 Japanese banks in Singapore were expanding their foreign exchange departments, which accounted for at least 30 to 40 pct of total bank activities last year. Sakaguchi said the liberalisation of the Toyko market stimulated Asian Dollar deposits and foreign exchange turnover and is leading to active Japanese futures trading on the Singapore International Monetary Exchange. Robin Tomlin, managing director of Singapore International Merchant Bankers Ltd, said international merchant banks cluster in Singapore because of the tax incentives, presence of major players and shift in regional capital flows. Tomlin pegged much of the future of the Singapore banking industry to securities and equities. "In 1988 we should see an expansion of securities trading following the link-up" of the Stock Exchange of Singapore Dealing and Automated Quotation System (SESDAQ) with the London exchange and the National Association of Securities Dealers Automated Quotation System (NASDAQ), he said. Equity and equity-linked issues have dominated the financial markets here to date because of buoyant domestic and international stock markets. Tomlin said privatisation programmes, both in Singapore and abroad, would encourage huge flows of capital through the banks. Applications received for the 30 mln Singapore Airline shares offered last week were worth 601.1 mln Singapore dlrs. The share offer by Sembawang Maritime Ltd raked in a record 6.8 billion Singapore dlrs in May this year. Bankers said Singapore's privatisations and links with exchanges abroad showed its determined international stance. Singapore's four major local banks have been venturing into stockbroking, the new government securities market and SESDAQ, competing successfully for business with the merchant banks. Tomlin said merchant banks will continue to play an important role in the Singapore domestic capital markets but the modest size of the total market would limit the potential of new entrants. Bankers said a total of 650 mln U.S. Dlrs was raised in the Singapore capital market last year and the volume of new issues would to grow in 1987. Total lending by banks in Singapore fell by 1.04 billion dlrs in March 1987 compared with last year following the trend towards asset management services and other capital market activities. Hans-Rudolf Schaub, the senior vice-president and manager of Swiss Bank Corp, said his bank has chosen Singapore as its Asian treasury centre because of favourable tax rules for offshore banks, political stability and economic growth. He said the bank might set up a securities portfolio management service here in addition to its existing links in international money market services with Zurich and New York. REUTER 29-JUN-1987 05:51:54.69 philippines RM AI f0389 reute u f BC-PHILIPPINES-TO-SIGN-F 06-29 0108 MANILA, June 29 - The Philippines and its foreign creditor banks will sign formal documents in mid-July to restructure part of its debt, the Central Bank said. A spokesman told reporters the documents would formalise the agreement reached in March on the restructuring of 10.3 billion dlrs, out of a total foreign debt of 28.2 billion. The interest rate spread agreed was 7/8 of a percentage point over LIBOR. The spokesman gave no date for the signing. Manila had demanded a renegotiation after Argentina won a 13/16 of a percentage point spread, but it later dropped this demand. REUTER 29-JUN-1987 05:54:08.83 veg-oil belgium ec G T f0392 reute u f BC-EC-PRESIDENCY-PREPARE 06-29 0113 BRUSSELS, June 29 - Belgium, current holder of the European Community presidency, appears ready to drop a controversial oils and fats tax from this year's hotly-contested farm price package, diplomats said. In a discussion document prepared for today's summit meeting of EC leaders, Belgium proposed the so-called "stabilising mechanism" be the subject of "further study and consultation with the Community's main trading partners." The proposal for a tax of as much as 330 Ecus per tonne on both imported and domestically-produced vegetable and marine oils and fats has attracted a storm of international criticism. The discussion document, aimed at preventing a cash row at the summit and breaking the deadlock at this year's farm price talks, contained the first formal reference to dropping the measure. Britain and Denmark, which assumes the EC presidency on June 30, have led the opposition to the measure. They are supported by West Germany and the Netherlands and, to a lesser extent, Spain. Although the paper was not universally welcomed, diplomats said, the proposal to postpone consideration of the tax for a further six months was certain to survive any redrafting. REUTER 29-JUN-1987 05:57:40.57 hong-kong F f0399 reute u f BC-SAMSUNG-SEMICONDUCTOR 06-29 0115 HONG KONG, June 29 - <Samsung Semiconductors Inc>, the U.S. Subsidiary of South Korea's <Samsung Semiconductors and Telecommunications Co Ltd>, has signed for a 22 mln U.S. Dlr loan, arranger LTCB Asia Ltd said. The eight year loan has a four year grace period. Interest is set at 1/4 percentage point over London interbank offered rate for the first two years, rising to 3/8 point thereafter. Management fee is 1/2 pct flat including a 1/4 pct praecipium. Participating in the loan, in addition to LTCB, are Credit Lyonnais, Daiwa Overseas Finance Ltd, Taiyo Kobe Finance Hongkong Ltd and Takugin International (Asia) Ltd. REUTER 29-JUN-1987 05:58:45.97 bahrain RM f0400 reute r f BC-BAHRAIN-BANKS-WILL-RE 06-29 0105 BAHRAIN, June 29 - Bahrain's 19 commercial banks have been instructed by the Bahrain Monetary Agency (BMA) to return to a six day working week with effect from July 4. A circular sent to the banks today reverses a shift in early April to a five day week and follows three months of controversy within the domestic banking sector over hours. A BMA spokesman said the circular, which does not affect offshore banks, represented a "compromise solution" between differing views within the industry and was drawn up following the agency's own survey of banks, staff and customers. In April the BMA allowed commercial banks to operate a five day week from Sunday to Thursday. Banks have since been closed on Fridays, the Islamic weekend, and Saturdays. The new regulation will require banks to work from 7.30 A.M. To 12 noon from Saturday to Thursday inclusive. Banks may open on these days during the afternoon between 3.30 and 5.30. The regulations apply to bank opening hours, not to staff working hours, which continue to be decided by banks. Under the five day week introduced in early April, banks have been obliged to open from 8 A.M. Until noon and from 3.30 to 5.30 P.M. REUTER 29-JUN-1987 06:07:51.00 money-fxnkr RM f0409 reute f f BC-NORWAY-CENTRAL-BANK-S 06-29 0014 ****** 29-JUN-1987 06:08:13.16 japan RM AI f0410 reute u f BC-BANK-OF-JAPAN-WORRIES 06-29 0093 By Rich Miller, Reuters TOKYO, June 29 - The Bank of Japan has become increasingly worried about a possible crash of high-flying financial markets, Bank of Japan sources said. "We're afraid that someday the bubble will burst and that the deflationary impact on the economy will be very disastrous," one source said. They said the central bank has embarked on a delicate policy -- it wants to deflate the speculation that has pumped up prices sharply in recent months without bursting the bubble. Stock prices plunged 393.31 points today, extending the sharp declines of earlier this month, as the market speculated that interest rates would rise. The Bank of Japan bought 100 billion yen in certificates of deposit (CDs) via repurchase agreements today to show its determination to maintain an easy money policy, central bank officials said. Today's CD buying operation was designed to reassure the market the Bank has not changed its policy, a senior central Bank official told Reuters. "There is a possibility that a deflationary impact would permeate the economy if the prices of existing assets collapsed," the Bank of Japan said earlier this month in its annual economic report. Such a possibility has been heightened by what the Bank sees as excessive speculation in stock, bond and land prices. Over the last two years, the stock market average has doubled, driving price/earnings ratios to over 70, compared with about 15 on Wall Street. Bond yields have dropped sharply, while land prices in Tokyo have soared. The excessive speculation means the markets are increasingly out of touch with economic reality and thus more vulnerable, one central bank source said. A collapse now could rob businessmen and consumers of what little confidence they have in the economy after the yen-induced recession of the past year, private economists said. Some hard-pressed exporters already make greater profits through financial dealings than from their basic businesses, they said. "There seems to be an accelerated demand for money to support transactions in shares, bonds, land and other existing assets which has little bearing on value added and therefore on GNP," the Bank of Japan said in its report. The increased inclination of investors to seek capital gains and the accompanying rise in prices of existing assets could have dangerous implications for the economy, it added. In the Bank's view, a major reason behind skyrocketing prices was its own easy monetary policy and the belief in the market that interest rates were heading inexorably lower. Mindful of the potential inflationary dangers posed by excessive liquidity, the Central Bank's board recently decided it had to spell out clearly to the markets that a further discount rate cut was not in the offing, one source said. But the bank had to do that without tightening monetary policy and running the risk of a market collapse. This was achieved partly by a rise in short-term interest rates, which Bank sources ascribed to seasonal pressures and to a change in market expectations. While denying the bank was tightening monetary policy, a senior source welcomed the change in market expectations. The source acknowledged the shift may have been caused partly by the decision to press commercial banks to limit lending in the July/September period. Faster than expected economic growth and a strong dollar also played a part. In the longer run, the Central Bank is counting on a gradual upturn in the economy to draw liquidity from the financial markets into productive areas like capital spending, one Bank of Japan economist said. But while it waits for that to occur over the next six months, it may have to avoid any overt tightening of monetary policy that could collapse the market and lead to recession. REUTER 29-JUN-1987 06:16:15.62 trade bangladesh RM f0425 reute r f BC-BANGLADESH'S-TRADE-GA 06-29 0113 DHAKA, June 28 - Bangladesh's trade gap is expected to widen in fiscal 1987/88 beginning on July 1 after the government relaxed restrictions on some imports including luxury cars. The country has set its export target for the year at 1.1 billion U.S. Dlrs against imports of 1.805 billion dlrs, compared with 1986/7's one billion dlrs of export earnings and 1.113 billion dlrs of imports. Commerce Minister Mohammad Abdul Munim said the changes were aimed at encouraging export oriented industries to boost foreign exchange earnings and imports of essential machinery and raw materials, to increase industrial production. The government was easing procedures to enhance incentives especially for exporters of textiles and frozen food and importers of industrial machinery and raw materials, Munim told reporters. Commerce Ministry officials told Reuters the import policy covered only commercial imports amounting to 1.805 billion dlrs. Imports of capital machinery and foodgrains by the government were not included in the policy, they added. They said the country's total import bill (both commercial and other imports) was expected to reach 2.7 billion dlrs in the new year compared with 2.4 billion dlrs in 1986/87. The minister said ending restrictions on imports of cars and dropping 50 pct sales tax on small cars would not harm the economy. Munim said Bangladesh feared a further drop in prices for its main export jute, "which will certainly affect our export earnings" in the coming year. Bangladesh's jute exports fell to 410 mln dlrs from 500 mln in 1986/87, according official figures. But Munim said exports of non-traditional items, which accounted for over 40 pct of total exports this year, would play a key role in achieving the 1987/88 export target. REUTER 29-JUN-1987 06:20:29.45 alum chinasouth-koreaaustralia M C f0433 reute u f BC-CHINA-ALUMINIUM-VENTU 06-29 0113 PEKING, June 29 - China and Australia's Victoria state signed a joint venture contract for a 290 mln dlr aluminium processing plant in China that will export to South Korea, Australian officials told journalists. China has no official direct trade or government ties with Seoul, while it maintains close links with North Korea. China International Trust and Investment Corporation (CITIC) would have 75 pct of the equity in <Bohai Aluminium Industries Ltd>, the company to build the rolling mill and extrusion plant on the northeast China coast, they said. It was China's largest joint venture so far, they said. "A joint venture opens up the potential for penetrating markets that would not otherwise be possible (for China)," Victoria state treasurer Rob Jolly said. An Australian diplomat said CITIC was eager to pursue South Korean markets. Indirect trade between China and Seoul is growing but is not officially publicised. Victoria's <Aluvic Ltd>, on behalf of the state government, will hold a 25 pct equity stake in the project, which is intended as a sister plant to Victoria's Portland aluminium smelter. CITIC in May agreed to invest about 80 mln dlrs in Portland. The China-based joint venture would process Portland aluminium and aim to sell aluminium products to the domestic Chinese market as well as for export, Jolly said. The Australian side's investment was limited to about 22 mln dlrs, but Aluvic would have the right to appoint key managers, he said. Australian officials said they hoped the goodwill generated by their participation would lead to further CITIC investment in Victoria. The Chinese group enjoys a high level of independence from Peking's central government and has extensive overseas investments. REUTER 29-JUN-1987 06:20:58.62 money-fxnkr norway RM f0434 reute b f BC-NORWAY-CENTRAL-BANK-S 06-29 0112 OSLO, June 29 - Norway's central bank sold crowns in the open market in a bid to ease strong upward pressure on the currency, which threatens to rise above set levels in a basket of currencies, dealers said. The central bank declined comment, but dealers noted the bank had also intervened and sold small amounts of crowns on Friday. The bank is committed to defending the crown at certain levels in a basket of 14 trade-weighted currencies. "They've been in again this morning, selling piecemeal whenever they think necessary," a senior dealer at an Oslo bank, who declined to be identified, told Reuters. The crown's index is currently around 109.60 in the basket -- close to its upper limit of 109.50 which the central bank is committed to defending. A low index figure indicates a high value for the crown. The limit at the other end of the scale is set at 114.50. The crown has been bolstered by high Norwegian interest rates, currently around 16 pct in the money market, and better than expected economic indicators which showed a sharply reduced foreign trade deficit in May and inflation stabilising around the current annual rate of 10 pct. REUTER 29-JUN-1987 06:23:33.24 hong-kong RM f0439 reute u f BC-UNITED-MERCHANT-FINAN 06-29 0113 HONG KONG, June 29 - United Merchant Finance Ltd, a joint venture between Barclays Plc and Jardine Matheson Holdings Ltd, is planning a 200 mln H.K. Dlr certificate of deposit issue, banking sources said. The five year issue, with both put and call options at the end of the third and fourth years, carries interest at 1/4 percentage point over Hong Kong interbank offered rate payable quarterly. The management fee is 25 basis points. Jardine Fleming and Co Ltd is lead manager. Co-managers are Barclays, Baring Brothers Asia Ltd, East Asia Warburg Ltd, Indosuez Asia Ltd and Mitsubishi Finance (Hong Kong) Ltd. REUTER 29-JUN-1987 06:26:47.78 japan nakasone RM AI f0443 reute u f BC-HIGHER-REVENUES-DEAL 06-29 0105 By Rich Miller, Reuters TOKYO, June 29 - Prime Minister Yasuhiro Nakasone's diminishing hopes of overhauling the tax system have been dealt a serious blow by reports of sharply higher than expected tax revenues in 1986/87, government officials said. Nakasone has argued that the tax system must be reformed to provide the revenue for more than 1,000 billion yen of tax cuts promised in the government's emergency economic package last month. But his argument has been undercut by reports that the 1986/87 tax take was as much as 2,500 billion yen more than expected. That means the government should have more than enough money in the fiscal year ending next March to pay for the planned tax cuts without having recourse to the unpopular tax measures proposed by Nakasone, one official said. The Prime Minister has proposed an indirect tax and the abolition of tax breaks on small savings as ways of raising revenue to offset the tax cuts. But stiff opposition has forced him to shelve the idea of an indirect tax, at least for the time being. He still hopes to gain parliamentary approval next month to abolish tax breaks on small savings. The higher than expected revenues in 1986/87 partly stemmed from increased receipts from land and securities taxes, as prices of both shares and land soared, one official said. But corporate tax revenues have also been more buoyant than expected, perhaps indicating the recession of the last year induced by the strong yen was not as bad as thought, he said. The final figures for 1986/87 revenues are due to be released by the Finance Ministry on July 1. The higher revenues last fiscal year have also undercut attempts by the Finance Ministry's budget bureau to reduce investment spending by government departments in the 1988/89 budget, several officials said. A budget bureau official said the bureau still wanted to stick with its so-called "minus-ceiling" policy, which calls for government departments to reduce investment spending by five pct a year. But he acknowledged this would be difficult, given the sharp increase in revenues last fiscal year and heavy domestic and U.S. Pressure on the ministry to stimulate the economy. REUTER 29-JUN-1987 06:27:31.93 west-germany F f0447 reute u f BC-VW-SUFFERS-IMAGE-LOSS 06-29 0092 By Anthony Williams, Reuters BONN, June 29 - Share analysts and commentators say Volkswagen AG <VOWG.F> has suffered an enormous loss of face from which it could take time to recover over its 473 mln mark currency swindle. An auditors' report on the affair, prepared in time for this week's annual shareholders' meeting, largely cleared the management of Volkswagen of blame. But "mud sticks," said Gavin Launder, an analyst with Scrimgeour Vickers in London. (See index on ECRA) The financial daily, Boersenzeitung, wrote in a commentary: "More devastating than the losses linked to the currency scandal is the resulting loss of image for the company." VW had to make provisions of 473 mln marks to cover losses from unauthorised foreign exchange deals which the auditors, Deutsche Treuhand-Gesellschaft, said highlighted major gaps in the supervisory apparatus of the firm's financial department. The auditors' report highlighted failings in VW's controlling system, especially in relation to a 385 mln mark deal with the Hungarian National Bank, but shed little light on why they were made. It said the contracts did not benefit VW and were only advantageous to its banks. It did not detail how the foreign exchange dealers may have profitted. It concluded: "The nature, scope and technical construction of the deals ... Suggest a targeted and professionally executed manipulation to the detriment of VW." The head of the finance department, Rolf Selowsky, resigned days after the scandal broke in March. He is not accused of any wrongdoing, but auditors concluded he had "not applied the necessary diligence in all instances." Two former VW foreign exchange dealers have been arrested. But even VW admits that the report, published last week, revealed important company failings. Peter Frerk, who has temporarily taken over Selowsky's reponsibilities, said the findings were "not a first class acquittal." The currency swindle was a "lamentable event for our company," he told journalists. The auditors said the remaining members of VW's management board and supervisory board had correctly fulfilled their obligations, a verdict which almost certainly means that major West German banks, who vote on behalf of large numbers of shareholders, will ratify both boards at the July 2 meeting. Many market analysts, especially in London, do not believe a sharp rise in VW's share price last week reflects a major reassessment of the firm on the basis of the auditors' report. The stock closed at 430 marks on Friday, up 11 pct from a week earlier. Dealers referrred to short-term bargain-hunting, and one London broker said "I'm not sure it's much of a bargain." Most brokers said they would not recommend clients to buy at these levels. Analysts believe VW will do well to match its 1986 group net profit of 582 mln marks this year, and one broker in London said the company would be lucky to report profits only 15 pct down. VW is expected to fare very well both in its home market and in Europe. But sales have fallen sharply in the U.S and Brazil, where the latest price freeze could exacerbate results even further. The company hopes to benefit in the long term from its takeover of the Spanish company SEAT, but this subsidiary is still producing losses. VW has also just announced a deal to build light pick-up trucks with Toyota Motor Corp <TOYO.T> at an under-utilised plant in Hanover, but analysts noted production here was only expected to take off fully in 1990. REUTER 29-JUN-1987 06:31:04.77 interest RM f0459 reute f f BC-BANK-OF-FRANCE-CUTS-I 06-29 0013 ****** 29-JUN-1987 06:31:27.43 trade belgiumusa ec G f0460 reute r f BC-EC,-U.S.-REMAIN-DIVID 06-29 0114 BRUSSELS, June 29 - Top-level talks last week between the European Community (EC) and the United States failed to resolve a dispute over pasta which may provoke new trade frictions next month, diplomatic sources said. The U.S. Insists the EC complies with what it regards as an unambiguous ruling from the world trade body GATT and dismantles an export subsidy system which has led to Italy taking an increasing share of the U.S. Pasta market. The sources said the EC, which currently provides subsidies of around 16 cents a pound, offered a compromise in last week's talks in Brussels but that this was rejected by the U.S. U.S. Assistant Special Trade Representative Jim Murphy has returned to Washington ahead of a theoretical July 1 deadline for agreement, set last August when the two sides resolved a related dispute over EC restrictions on U.S. Citrus imports. The diplomatic sources said the citrus issue could be reopened if the pasta dispute was not solved quickly. It was also possible the U.S. Would reimpose a 40 pct tariff on EC pasta, lifted when the citrus row was settled. But the two sides may agree to extend the deadline for a few days as EC Commissioners Willy de Clercq and Frans Andriessen are due to visit Washington from July 7 to 10. REUTER 29-JUN-1987 06:34:53.80 interest RM f0471 reute f f BC-BANK-OF-FRANCE-CUTS-S 06-29 0015 ****** 29-JUN-1987 06:38:24.74 uk RM f0477 reute u f BC-TERMS-SET-ON-NICHIREI 06-29 0095 LONDON, June 29 - The coupon on the 100 mln dlr, five year, equity warrant eurobond for Nicherei Corp has been set at the indicated 1-3/8 pct, lead manager Nikko Securities Co (Europe) Ltd said. The exercise price was set at 974 yen per share representing a premium of 2.53 pct over today's closing price in Tokyo. The foreign exchange rate was set at 147.45 yen to the dollar. A 50 mln dlr, seven year, deal for Nichirei will be priced later this morning by lead manager Yamaichi International (Europe) Ltd. REUTER 29-JUN-1987 06:39:13.28 grainwheatoilseedrapeseed poland G f0478 reute r f BC-POLISH-FARM-PRICES-AN 06-29 0114 WARSAW, June 29 - Polish farmers will receive price rises ranging from 13.4 pct for some crops to 23.3 pct for meat from July 1, the Finance and Agriculture ministries said. The state procurement price for rape will rise 13.4 pct to 5,500 zloties per quintal, while wheat and rye will go up an average 18.2 pct to 3,100 and 2,400 zloties per quintal. Pork will rise by 18.8 pct and beef 23.3 pct. The ministries said the new prices aimed to ensure farmers' profits and meet higher living costs. But at the same time they said fertilisers would rise by an average 50 pct, animal feeds by 38 pct and tractors by 25 pct. REUTER 29-JUN-1987 06:40:48.66 F f0482 reute f f BC-Degussa-plans-one-for 06-29 0011 ****** 29-JUN-1987 06:43:27.07 veg-oil belgium ec G T f0487 reute b f BC-EC-FARM-MINISTERS-TO 06-29 0084 BRUSSELS, June 29 - European Community agriculture ministers will meet tomorrow evening, after the end of a two-day summit meeting of heads of government, to again attempt to agree a 1987/88 farm price package, an EC Commission spokesman said. He added that tomorrow's EC Official Journal will contain notice of special agricultural measures of a purely technical nature which will come into effect on July 1 unless the ministers reach an accord. The spokesman declined to detail these special measures but said they would not be the sort of "dynamic" moves which EC Farm Commissioner Frans Andriessen has said he would take in the case of complete deadlock among farm ministers. These moves would be taken only if tomorrow's meeting of ministers in Brussels again fails to reach an accord, EC sources said. Andriessen is thought to be prepared to cut cereals prices by seven pct and to take other drastic action, trade sources said. EC farm ministers ended their last meeting on June 18 still split over the Commission's proposal for a tax on vegetable and marine oils and fats. In addition, West Germany said it would veto plans for cereal price cuts and for a change in the green currency system. Earlier today, diplomats said Belgium, the current holder of the European Community presidency, appears ready to drop the plans for the controversial oils and fats tax. REUTER 29-JUN-1987 06:44:39.60 uk RM f0489 reute b f BC-LAND-SECURITIES-ISSUE 06-29 0114 LONDON, June 29 - Land Securities Plc <LAND.L> is issuing a 75 mln stg convertible eurobond due December 31, 2002 with an indicated coupon of 6-3/4 to seven pct and par pricing, lead manager J. Henry Schroder Wagg Ltd said. The issue is callable at 106 pct declining by one pct per annum to par thereafter but is not callable until 1992 unless the share price exceeds the conversion price by 130 pct. The selling concession is 1-1/2 pct while management and underwriting each pays 1/2 pct. Final terms will be set on, or before, July 8, and the expected conversion premium is 13 to 18 pct. The payment date is July 30. The issue is available in denominations of 1,000 stg and will be listed in London. REUTER 29-JUN-1987 07:02:31.62 west-germany F f0507 reute b f BC-DEGUSSA-PLANS-ONE-FOR 06-29 0091 FRANKFURT, June 29 - Degussa AG <DGSG.F> said it planned a one-for-five rights issue at 225 marks per share, raising nominal share capital by 61 mln marks, by the end of its current business year ending September 30. The company said in a statement it would also raise nominal share capital by 20 mln marks in a share swap as part of its planned takeover of French medicine group <Laboratoires Sarget SA>. The two capital measures will raise Degussa nominal share capital to 365 mln marks. Degussa said last week it intended to buy 100 pct of the capital of the medical pharmaceuticals group Sarget, based in Merignac near Bordeaux. Sarget had 1986 sales in France, Belgium, the Netherlands, Spain, Portugal and Italy of 730 mln French francs. Degussa has not said how much it would pay for Sarget, but 20 mln marks nominal of 50-mark shares, at today's Frankfurt opening price of 494.70 marks, would be worth nearly 198 mln marks. A 61 mln mark nominal capital increase at 225 marks would raise 274.5 mln marks. Degussa said the 20 mln mark nominal capital increase would take the form of an issue of shares for a non-cash consideration. The April 10 annual meeting agreed that there would be no rights issue on this capital, which was already authorized but unissued. The rights issue involving the 61 mln mark nominal capital increase will be led by Dresdner Bank AG. Following that capital increase, Degussa would be left with 19 mln marks of authorized but unissued capital, a Degussa spokesman said. Part of the 274.5 mln marks from the rights issue would also be used for the Serget acquisition, he added. REUTER 29-JUN-1987 07:03:39.34 japan F f0510 reute u f BC-RICOH-SEES-GROUP-NET 06-29 0115 TOKYO, June 29 - Ricoh Co Ltd <RICT.T> has predicted group net profit of 11 billion yen in the year ending March 31, 1988, up 0.5 pct from a year earlier, assuming a yen/dollar rate of 140 yen, a company spokesman said. Sales in 1987/88 are expected to rise 6.4 pct from a year earlier to 630 billion yen, on an increase in overseas production and an improvement in its domestic sales network. The company earlier reported group net profit of 10.95 billion yen in 1986/87, down 29.2 pct from a year earlier. Sales were 0.3 pct down at 592.37 billion, due to reduced exports caused by the yen's appreciation against the dollar. Ricoh's exports, accounting for 34.2 pct of total sales against 39.6 pct a year earlier, fell 13.8 pct from a year earlier to 202.83 billion yen in 1986/87, while domestic sales rose 8.7 pct to 389.55 billion. REUTER 29-JUN-1987 07:05:48.06 tradelivestockhog denmarkcanada ec G L f0514 reute r f BC-CANADA-THREATENS-BAN 06-29 0110 COPENHAGEN, June 29 - Canada has threatened to stop imports of Danish pigmeat from July 14 after Canadian veterinary inspectors approved only two of 33 slaughterhouses, a Danish agriculture ministry official told Reuters. The Canadians postponed the original July 1 deadline at the request of the European Commission, which Denmark approached for support. Danish Foreign Minister Uffe Ellemann-Jensen said in an interview with the daily Berlingske Tidende: "Denmark will not accept a ban on Danish meat exports, and I am sure we can reach an understanding with the Canadians with the help of the EC." Danish pigmeat exports to Canada were worth 106 mln crowns in 1986, while Canadian exports to the European Community totalled about 6.5 billion U.S. Dlrs. Some Danish slaughterhouse officials expressed suspicion that the Canadian action was in response to tightening up by EC veterinary inspectors on Canadian food exports to the EC. But an official at the Canadian embassy in Copenhagen said the inspection of Danish slaughterhouses was based on EC regulations. "Canadian officials are very concerned about the trade implications. We are holding active discussions with the EC and bilaterally," she added. REUTER 29-JUN-1987 07:08:08.12 crude austria opec V f0520 reute b f BC-EXTRACTS-FROM-OPEC-CO 06-29 0112 VIENNA, June 29 - Following are extracts from the communique issued at the conclusion of the OPEC conference here. "The conference expressed satisfaction about the positive results of the agreement signed in December, 1986, by which OPEC re-established the system of fixed price at a level of 18 dlrs per barrel supported by OPEC production ceilings distributed into national production levels. "The conference noted that all market indicators, including spot prices in the market and netback values of all OPEC crudes, have been firming up significantly, thus consolidating the OPEC price structure as defined by the agreement." "The conference examined the supply/demand outlook for the second half of the year and decided that in order to secure continued firm prices in the market, OPEC production during the fourth quarter of 1987 will be equal to that of the third quarter, I.E. 16.6 mln barrels per day (bpd), distributed into the same national production levels as were defined by the above-mentioned agreement for that quarter." "Furthermore, the conference decided to establish a committee of five heads of delegation to monitor the price evolution in the market in relation to the OPEC official prices in order to secure price stability around the opec price structure. "Should there be any significant change in market prices, the committee would immediately call for an extraordinary meeting of the conference with a view to deciding on the necessary OPEC production levels during the second half of the year, which would secure the desired market stability." "The conference reiterated the necessity of member countries' strict adherence to the agreement signed in December 1986, both in terms of official price, and national production, levels. "For this purpose, the conference decided to establish a committee of three heads of delegation to undertake visits to member countries in order to motivate them to comply with the terms of the agreement." "Moreover, the conference stressed the necessity of the cooperation of the oil-producing exporting countries outside OPEC as an essential prerequisite for a lasting market stability. The conference, therefore, decided to reinstate the group of five heads of delegation established by the 77th (extraordinary) meeting of the conference in April, 1986 to undertake the necessary contacts with those countries. "The conference observed the continued fall in the value of the U.S. Dollar and agreed that the matter should be studied and reported to the next meeting of the conference." "The conference discussed the appointment of the secretary general and decided to discuss the matter again in its next ordinary meeting. "The conference extended the term of office of Fadhil al-Chalabi as deputy secretary general for a period of one year from October 7, 1987. "The next ordinary meeting of the conference will be convened in Vienna on December 9, 1987." REUTER 29-JUN-1987 07:10:44.32 interest west-germany poehl A f0531 reute u f BC-POEHL-SPEAKS-AGAINST 06-29 0097 BONN, June 29 - Bundesbank President Karl Otto Poehl said West Germany would be badly advised to lower interest rates and that he believed the economy would continue to recover after a six-month lull. Asked by the newspaper Bild am Sonntag if lower interest rates could boost the domestic economy, Poehl said: "We would be badly advised if we forced further interest rate cuts. "This could, under certain circumstances, release new inflationary fears which would then be more likely to lead to higher interest rates," he added. Poehl said Germany had practically no growth in the past six months because of the mark's surge and the cold winter. "But since April, statistics clearly show that the economy finds itself on a course of growth," he said. "I expect this development to continue in the coming months." Asked about his expectations of a U.S.-European Community trade war, Poehl said such an event would be disastrous. "For this reason we in Europe must avoid everything used by protectionist forces in the U.S. As pretexts," he added. "This includes...Eliminating existing restrictions in the EC as far as possible. Protectionism is not found only in the U.S." Reuter 29-JUN-1987 07:11:42.51 argentinausa sourrouille imf A f0534 reute u f BC-ARGENTINE-MINISTER-TO 06-29 0112 BUENOS AIRES, June 29 - Argentine Economy Minister Juan Sourrouille left at the weekend for the United States for talks with creditor banks and the IMF aimed at obtaining the release of new loans, the semi-official news agency Telam said. It said Sourrouille would urge the IMF to release a 480 mln dlrs compensatory loan for falling exports as well as the first two tranches of a standby loan, totalling 450 mln dlrs. Release of the funds from the standby loan has been delayed by Argentina's failure to win final approval to a 1.95 billion dlr loan from creditor banks, which was a condition for the IMF disbursement. Banks have pledged 97 pct of the 1.95 billion dlr loan but the IMF has not yet defined what amount constitutes the "critical mass," which is needed for release of the IMF funds and the funds from creditor banks. The president of Argentina's bank steering committee, William Rhodes of Citibank, said on Friday he thought the loan agreement with Argentina could be signed in August. Reuter 29-JUN-1987 07:12:17.89 crude austriakuwaitiraqiran V f0536 reute u f BC-KUWAIT-SEES-OPEC-OUTP 06-29 0119 VIENNA, June 29 - OPEC output for the second half of 1987, including that of Iraq, will be above the official 16.6 mln barrels per day (bpd) output ceiling agreed by OPEC Saturday, Kuwait oil minister Sheikh Ali al-Khalifa al-Sabah, said. Iraq refused to sign the pact, by which OPEC maintained its ceiling at 16.6 mln bpd for both the third and fourth quarters of 1987. In December, OPEC set a provisional fourth quarter level of 18.3 mln bpd, now cut back to the third quarter target. Ali told a news conference that including Iraq, "OPEC third quarter output will be between 17.5 and 17.7 mln bpd while fourth quarter output will be nearly 18 mln bpd" Ali did not detail what effect he thought these production levels would have on prices. Iraq has an official first half quota of 1.466 mln bpd, rising to 1.54 mln in the second half, but has refused to adhere to it and has recently been producing around two mln barrels per day, exporting it through pipelines to Saudi Arabia and Turkey. Iraq's export capacity will be further boosted when a 500,000 bpd oil pipeline via Turkey comes on stream in about September. Iraq has been insisting on a quota equal to its Gulf War enemy Iran, which has a quota of 2.255 mln bpd, rising to 2.369 mln in the second half. Ali said the position of the 400,000 bpd production from the Neutral Zone between Saudi Arabia and Kuwait, which has been supplied to Iraq as war relief crude, was fixed. "We will not discuss it. There will not be any change," he said. Ali said the conference, which began Thursday and ended Saturday evening, had been too short for all necessary problems to be adressed. "We are overdoing it in holding too short a meeting. We sweep a lot under the carpet," he said. Ali said the problem of price differentials between the prices of various OPEC crudes had not been dealt with properly at the meeting. Ali said "The problem of differentials is a real one. I would hate to be producing today a light crude and that problem has not been dealt with properly. Light crudes are overpriced relative to heavy crudes." Asked if the issue of differentials would be raised at the next OPEC meeting to be held in Vienna on December 9, Ali said "If my crudes are affected I will raise the issue, I will not do the work of another minister." Kuwait's own crudes range from medium to heavy grades. OPEC reintroduced fixed prices on February 1, with a spread of 2.65 dlrs a barrel between its lightest and heaviest crudes. Reuter 29-JUN-1987 07:12:55.33 crude iraqiran Y f0542 reute u f BC-IRAQ-REJECTS-NEW-OPEC 06-29 0064 BAGHDAD, June 29 - Iraq has rejected its new OPEC production quota set in Vienna for the second half of this year, the official Iraqi news agency INA reported. It quoted Oil Minister Issam Abdul-Rahim al-Chalabi, who returned Sunday, as saying "Iraq will continue to adhere to its position considering itself as not included in the agreement." Last December, Iraq rejected its assigned first half 1987 quota of 1.466 mln bpd and demanded a share equal to the 2.255 mln bpd quota set for Iran, its enemy in the nearly seven-year-old Gulf war. The accord reached by OPEC ministers in Vienna Saturday set an output ceiling of 16.6 mln bpd for the group's 13 members from July to December, raising Iraq's share to 1.54 mln bpd and Iran's to 2.369 mln. Reuter 29-JUN-1987 07:17:00.15 earn singapore F f0553 reute h f BC-FRASER-AND-NEAVE-LTD 06-29 0059 SINGAPORE, June 27 - Shr 15.8 cents vs 12.9 cents Int div six cents vs same Group net 19.90 mln dlrs vs 16.25 mln Turnover 390.70 vs 381.60 mln NOTE - Div pay Aug 3, register July 31. Co says it expects results for the second half year to be similar to those of the first half. REUTER 29-JUN-1987 07:18:02.60 earn japan F f0556 reute d f BC-MITSUI-REAL-ESTATE-DE 06-29 0076 TOKYO, June 29 - Year ended March 31 Group shr 33.98 yen vs 39.10 Net 21.16 billion vs 19.96 billion Current 45.23 billion vs 32.87 billion Operating 77.17 billion vs 63.90 billion Sales 616.96 billion vs 527.88 billion NOTE - The company said the 37.6 pct increase in 1986/87 group current profit from a year earlier was mainly due to a drop of two billion yen in interest payments. REUTER 29-JUN-1987 07:20:19.71 france F f0559 reute d f BC-FRENCH-CHANNEL-TF-1-P 06-29 0098 PARIS, June 28 - France's state-run television channel TF-1, which is in the process of being privatised, should achieve a profit of around 25 francs per share next year after several years of losses, but will not make a profit this year, the new TF-1 president Francis Bouygues said. Interviewed on TF-1 on the eve of the public flotation of 40 pct of the channel's equity, Bouygues said "in 1988 we have to make a profit, and we will make a profit." "I envisage per share profits of 25 francs," he said. "I am very optimistic." Bouygues said exceptional costs associated with the restructuring of the station would prevent a profit this year. The state sold a 50 pct stake in TF-1 in April to a consortium led by Bouygues, a construction magnate, and including British press baron Robert Maxwell. Tomorrow 40 pct of the shares go on sale to the public at 165 francs each, while 10 pct will be offered at a special price of 132 francs a share to the station's staff. Bouygues said a dividend would be paid to shareholders next year if the station did return to profit. Asked if he thought the flotation price was right, Bouygues said, "I paid virtually double...I consider that it is a good buy." The Bouygues consortium paid three billion francs for its 50 pct controlling stake in April. After the two-week public flotation, TF-1 shares will start trading on the second market here in late July. REUTER 29-JUN-1987 07:20:29.90 france chirac A f0560 reute r f BC-CHIRAC-SEES-STABLE-FR 06-29 0103 PARIS, June 29 - French buying power should remain stable this year despite lower economic growth, while investment will rise sharply, Prime Minister Jacques Chirac said. "I think we will maintain our buying power... I do not think it will fall," Chirac told a radio interviewer yesterday. Last year French household buying power rose 2.9 pct. Chirac said economic growth would be substantially lower than originally forecast but investment would rise by close to 16 pct in the 1986 to 1988 period, reversing the 3.8 pct decline in the previous four-year period. REUTER 29-JUN-1987 07:27:13.36 west-germany F f0571 reute u f BC-HENKEL-EXPECTS-HIGHER 06-29 0099 DUESSELDORF, June 29 - Henkel KGaA <HNKG.F> expects 1987 world group turnover and profit to exceed 1986 levels as recent acquisitions should compensate for the negative impact of the strong mark, managing board chairman Helmut Sihler said. He told the annual meeting that based on Henkel's performance so far, the profit increase would be "not insignificant." World group sales rose six pct in the first five months this year compared with the same 1986 period but group turnover rose only two pct because of currency factors, he said. Sihler said the profit increase surpassed that of turnover but gave no figure. As reported, group net profit rose 28 pct to 226 mln marks in 1986. World group sales by volume rose six pct but currency factors trimmed group turnover by six pct to 8.7 billion marks. Sihler said the 1986 profit/sales ratio of 2.6 pct should rise further this year. Sihler said turnover grew more or less equally in all sectors. As reported, the 1986 dividend on ordinary voting shares rose to 4.50 marks from 3.50 in 1985 while the dividend on non-voting preference shares increased to 7.50 marks compared with three marks for six months of 1985. REUTER 29-JUN-1987 07:27:32.06 south-korea V f0573 reute u f BC-SOUTH-KOREA-RULING-PA 06-29 0084 SEOUL, June 29 - South Korea's ruling party will seek a direct presidential election to solve an acute political crisis in the country, a party spokesman said. The Democratic Justice Party will ask President Chun Doo Hwan to accept opposition demands for a direct poll to end the current social turmoil, he said. The party will also urge Chun to allow an amnesty for top dissident Kim Dae-jung and an immediate release of most political prisoners. - REUTER 29-JUN-1987 07:27:53.20 singaporeusa F f0574 reute u f BC-HITACHI-UNIT-MAY-WITH 06-29 0107 SINGAPORE, June 29 - Hitachi Ltd of Japan's <HIT.T> Hitachi Electronic Devices (S) Pte Ltd, which suspended selling colour television tubes in the United States since January in anticipation of a "dumping duty," said that it may be pushed out of the U.S. Market if too high a final duty is assessed. A company spokesman said that the Commerce Department had assessed a temporary 1.52 pct duty on tubes made by his company. The department said it would assess final dumping duties by September 8. The company was Singapore's only exporter of colour television tubes to the U.S, he said. 29-JUN-1987 07:37:02.22 bop RM f0590 reute f f BC- 06-29 0016 ****** 29-JUN-1987 07:38:56.41 trade RM f0596 reute f f BC- 06-29 0014 ****** 29-JUN-1987 07:58:09.68 cocoacottoncoffee ivory-coast T G f0629 reute u f BC-IVORY-COAST-WEATHER-N 06-29 0111 ABIDJAN, June 29 - Ivory Coast rainfall this season has been less than in previous years, but 1986/87 cocoa and coffee production has not suffered, the official Ivorian daily Fraternite Matin reported. The newspaper did not speculate on whether recent dry conditions seriously threatened the main 1987/88 cocoa crop. Trade sources said the weather up to now could be irrelevant if there is good rainfall in coming weeks. Precipitation during the present campaign has been lowest in northern savannah regions, where the cotton crop has especially benefitted from the dry weather, Fraternite Matin said. Agriculture Minister Denis Bra Kanon said earlier this month 1986/87 cotton output would be a record 213,506 tonnes, compared with 190,000 tonnes in 1985/86. Fraternite Matin said the mainstays of Ivorian agriculture had been little affected by the dry weather. Coffee does not need very much water to survive and only old cocoa plants have been affected in some regions, it added. London-based dealer Gill and Duffus recently forecast 1986/87 Ivory Coast cocoa output at a record 590,000 tonnes, which compares with 585,000 estimated for 1985/86. It described early development of the new main crop as patchy. The U.S. Agriculture Department (USDA) earlier this year forecast a drop in 1986/87 coffee production in the Ivory Coast due to drought in the western part of the country. It estimated the crop at 3.84 mln bags compared with the previous year's 4.33 mln bag harvest. Ivorian officials have only described this year's coffee crop as "normal." REUTER 29-JUN-1987 07:58:19.14 earn india F f0631 reute u f BC-TATA-IRON-AND-STEEL-P 06-29 0071 BOMBAY, June 29 - Year to March 31, 1987 Share 106 rupees vs 130 Pre-tax profit 995.2 mln rupees vs 1.57 billion Net profit 875.2 mln vs 1.07 billion Sales 14.16 billion vs 12.85 billion Dividend 25 pct vs same Tax 120 mln vs 500 mln Note - Full company name is Tata Iron and Steel Co Ltd <TATA.BO>. Dividend is payable to shareholders on Aug 12. REUTER 29-JUN-1987 08:12:33.42 acq usa F f0686 reute r f BC-KRAFT-<KRA>-COMPLETES 06-29 0038 GLENVIEW, ILL., June 29 - Kraft Inc said it has completed the previously announced acquisition of the Anderson Clayton Foods Division from Quaker Oats Co for 235 mln dlrs in cash. Reuter 29-JUN-1987 08:24:48.85 F f0723 reute f f BC-MARINE-CORP-SAY 06-29 0014 ****** 29-JUN-1987 08:32:00.83 C G L M T f0740 reute u f BC-BANGLADESH-SHIPPING-E 06-29 0105 DHAKA, June 29 - Nearly 1,000 employees of Bangladesh Shipping Corp called off their two-week-old strike on Saturday after the authorities agreed to consider their demands for higher wages and benefits, corporation officials said. The employees walked out on June 11 over their demands, forcing the government-run corporation to engage navy personnel to unload grain at the country's biggest Chittagong port. Anwarul Haq, director of the corporation, said the strikers joined their work this morning after the authorities assured them they would review their demands soon. Reuter 29-JUN-1987 08:32:12.65 F f0742 reute d f BC-OLIVETTI-SEEKS-TO-STR 06-29 0098 ROME, June 29 - Ing C Olivetti EC SpA <OLIV.MI> is in contact with Telerate Inc <TLR> of the U.S. And other, unidentifed groups with a view to strengthening its economic news agency business <Radiocor - Agenzia Giornalistica Economica Finanziaria SRL>, an Olivetti spokesman said. The spokesman was responding to a Reuters query following an item in the Milan weekly Milano Finanza saying Dow Jones and Co Inc <DJ>, which has a controlling stake in Telerate, could become a partner in Radiocor through subscribing to a capital increase. The spokesman said that Telerate was among many companies with which Olivetti was in contact, with a view to strengthening Radiocor through the entry into the business of new partners, but that no accord had been reached. He declined to identify the other companies involved, but Milano Finanza named the owners of the Italian financial daily Il Sole 24-Ore and <Societa Elenchi Ufficiali degli Abbonati al Telefono> as likely partners along with Telerate. Olivetti last month announced a joint information technology deal with Societa Elenchi, which specialises in publishing telephone and city directories, and the Italian publishing group <L'Espresso>. Olivetti chairman Carlo De Benedetti told the Olivetti annual meeting last week that the entry of new partners into Radiocor was planned, but he did not elaborate. Industry sources said they believed talks between Olivetti and Telerate had been taking place for some months. Olivetti acquired a 76 pct stake in Radiocor last December and has since increased its stake in the agency to 100 pct. The takeover was followed in May this year by the acquisiton by De Benedetti's French holding company <Cerus> of a stake of around 35 pct in the French financial information agency <Dafsa>. In May, Cerus also acquired a 4.9 pct stake in the British publishing and financial services group Pearson Plc <PSON.L>. REUTER 29-JUN-1987 08:33:47.64 F f0759 reute r f BC-SCIENTIFIC-MICRO-<SMS 06-29 0087 NEW YORK, June 29 - Scientific Micro Systems said it has won a major original equipment manufacture contract valued at about 12 mln dlrs from Siemens AG <SIEG.F>, West Germany. The company said the contract, to be handled by Scientific Micro Systems GmbH, Augsburg, is for the supply of multi-function disk and tape controllers with SCSI and ESDI interfaces. Scientific is a supplier of computer equipment including data controllers and mass storage subsystems. Reuter 29-JUN-1987 08:34:41.07 F f0768 reute d f BC-BAKER,-FENTRESS-<BKRF 06-29 0071 CHICAGO, June 29 - Baker, Fentress and Co said it named James Gorter as chairman, filling the vacancy created by the death on June 23 of Chairman and Chief Executive Officer James Fentress. Gorter, a partner of Goldman, Sachs and Co, has been a Baker, Fentress director since 1978. The company said Daivd Peterson, president since 1982, was elected chief executive officer. Reuter 29-JUN-1987 08:34:51.33 F f0770 reute d f BC-AUTOSPA-<LUBE.O>-UNIT 06-29 0073 WOODSIDE, N.Y., June 29 - Autospa Corp said its wholly owned Autospa Franchising Corp subsidiary entered into an agreement to form a joint venture for franchising Autospa Flat Proof Service Centers with Seal-It Corp, a private Los Angeles-based automotive aftermarket company. Under the agreement, AutoSpa Franchising and Seal-It each will hold 50 pct of the joint venture company shares. Reuter 29-JUN-1987 08:35:17.20 F f0771 reute b f BC-MARINE-<MCRP.O>-GETS 06-29 0070 MILWAUKEE, WIS., June 29 - Marine Corp said it received a proposal from Marshall and Ilsley Corp <MRIS.O> under which Marine shareholders would receive Marshall and Ilsley common stock or a combination of cash and stock equal to at least 62.50 dlrs a share of Marine common. It said the proposal will be considered by the Marine board after analysis by its advisers. Reuter 29-JUN-1987 08:48:04.43 F f0801 reute d f BC-DIVERSIFIED-GETS-APPR 06-29 0103 NEW YORK, June 29 - <Diversified Diagnostic Industries Inc> said it has received approval from the Food and Drug Administration (FDA) for a sceening kit that would test for salmonella in a number of foods including meat. The test, called Chik Chek, would be the first over-the-counter test for salmonella and can determine in less than 15 minutes if the bacteria is present in poultry, pork, red meat, eggs or dairy products, the company said. Diversified said the kit, which uses a chemical process to detect the bacteria, will be available nationwide shortly. According to the company, the FDA estimates that more than four mln Americans may suffer from salmonella poisoning each year, with illnesses ranging from mild gastrointestinal distress to arthritis and even typhoid fever. Reuter 29-JUN-1987 08:48:10.85 F f0802 reute u f BC-FIELDCOR-<FICR.O>-TO 06-29 0082 PHILADELPHIA, June 29 - Fieldcor Inc said it will take a one-time 30 mln dlr special provision in the second quarter for possible losses in loans to developing countries. The corporation said it will be profitable in the quarter despite the action which will reduce quarterly net income by 23 mln dlrs, or 37 cts a share on a fully diluted basis. For the year-ago second quarter, Fieldcor reported earnings of 24.8 mln dlrs, or 95 cts a share. Fieldcor also said it expects to report "strong earnings" for the second half of the year. It earned 92.3 mln dlrs, or 3.69 dlrs a share fully diluted in 1986. The company said its loans to developing countries experiencing payment or liquidity problems total 88 mln dlrs and represent 1.3 pct of its total loan portfolio. It said there will be no change in the current dividend policy. Reuter 29-JUN-1987 08:50:57.97 C f0809 reute d f BC-IMF-MANAGING-DIRECTOR 06-29 0133 ABIDJAN, June 29 - IMF Managing Director Michel Camdessus paid a brief weekend visit to the Ivory Coast during which he discussed the country's economic difficulties with President Felix Houphouet-Boigny. Camdessus said he wished his visit could have been in more pleasant circumstances in remarks reported by the official Ivorian daily Fraternite Matin. He added that the extremely steep fall in agricultural commodity markets had dealt a harsh blow this year to the Ivorian economy and because of this the country was experiencing a growth problem and difficulties with its international debt. Last month the Ivory Coast informed its creditors it had to suspend payments on its foreign debt, estimated at more than eight billion dlrs. Reuter 29-JUN-1987 08:53:19.13 C G T f0813 reute d f PM-FLOODS 06-29 0117 DHAKA, June 29 - Flash floods and high winds have trapped some 10,000 people and injured at least 50 in northeastern Bangladesh's Sunamganj district, officials said. They said water, knee-deep in at least 10 villages following heavy rains last Wednesday, was receding after extensively damaging crops and property. The situation was aggravated by a 40-mile-per-hour storm which swept across the area yesterday and flattened at least 200 houses, the officials said but gave no other details. Relief Ministry officials, describing the floods as a "routine hazard," told Reuters relief squads had been dispatched to the area with food and medicine. Reuter 29-JUN-1987 08:54:29.52 F f0815 reute h f BC-PREMIER-GROUP-SEES-RE 06-29 0107 JOHANNESBURG, June 29 - Premier Group Holdings Ltd <PMLJ.J> anticipates that current fiscal year profits will show a reasonable increase over last year when per share results rose 43 pct to 233 cents, the company said in the annual report. The profit projection assumed "no further significant political deterioration inside South Africa, and no unmanageable increase in sanctions" in industries that Premier is involved, the company added. The company, with total turnover of 2.62 billion rand in the year ended March 31, operates in the food, fishing, pharmaceutical and leisure industries. Reuter 29-JUN-1987 08:56:52.88 F f0818 reute u f BC-MICRON-<PMR>-WILL-ACQ 06-29 0106 FITCHBURG, Mass., June 29 - Micron Products Inc said it has agreed to acquire Numedco Inc from <Myraid Group Inc> for 500,000 Micron common shares, 2,400 shares of 1,000 dlrs par value preferred and an undisclosed amount of cash. The company said the acquisition has been approved by Micron and Myraid directors and is subject to approval by shareholders of both companies. Micron now has about 1.9 mln common outstanding. Numedco could increase Micron's sales by 800 pct and its earnings by 100 pct, it said. In the nine months ended March 31, it earned 269,000 dlrs on sales of 2.7 mln dlrs. Reuter 29-JUN-1987 08:58:34.01 C T f0820 reute u f BC-COLOMBIA-OPTIMISTIC-O 06-29 0098 COLOMBIA OPTIMISTIC ON COFFEE QUOTAS repeat from late yesterday MEDELLIN, Colombia, June 28 - Colombia considers conditions are favourable for reestablishing coffee export quotas, but Brazil believes that difficulties remain with the United States, coffee leaders from the two countries said. "Colombia considers that if the principal International Coffee Organisation (ICO) members adopt a realistic and objective approach, it will be possible to find a solution at the next meeting in London," Colombian Coffee Federation president Jorge Cardenas said at a coffee symposium. The symposium has raised hopes that producers would find a common position on quota distribution before a September ICO plenary meeting in London when quotas will be the main item on the agenda. Cardenas, representing the world's second largest coffee producer, said all producer countries as well as consumer countries including the United States, Japan and the European Community had expressed an interest in reestablishing quotas. However, the President of the Brazilian Coffee Institute Jorio Dauster told Reuters that problems remained between the United States and Brazil. "By the end of the February meeting it was shown that 85 pct of the producer countries were with Brazil," he said. "However, up to now I have not seen fundamental changes in their positions." ICO talks on quotas broke down in February largely due to a conflict between the world's main producer Brazil and main consumer the United States. ICO director Alexandre Beltrao said at the symposium that conditions were right to discuss reestablishing export quotas. He said the strong views of Brazil and United States expressed in February had abated. "Confirmation of the bumper crop in Brazil is good for prices and compels countries to seek agreement on basic quotas," Beltrao told Reuters. "Brazilian authorities have said the crop for 1987/88 coffee season could be 35.2 mln 60 kg bags," he added. Beltrao spoke of the presence of new factors that work against the stability of the ICO, created 25 years ago. "Foreign debt and as a result worse economic, political and social conditions make the adoption of a national and international coffee strategy more difficult," he said. The ICO board would meet in July to discuss these matters. Reuter 29-JUN-1987 08:59:06.38 F f0821 reute f f BC-texaco-said-sec 06-29 0013 ****** 29-JUN-1987 09:06:31.51 Y f0837 reute u f BC-INTERNATIONAL-SPOT-OI 06-29 0112 By Karen Yates, Reuters LONDON, June 29 - OPEC's weekend decision to cut planned oil output levels for second half 1987 has renewed market confidence in the oil price outlook for the rest of the year and boosted international spot prices, oil traders said. Spot crude prices are now standing 80-85 cents a barrel higher than at the start of the OPEC meeting last Thursday and could continue their rise in the next few weeks, they said. The new optimism springs from the agreement reached by OPEC ministers in Vienna on Saturday to fix a July-December output ceiling of 16.6 mln barrels per day (bpd). At its previous meeting in December, OPEC set a provisional 16.6 mln bpd output limit for the third quarter but proposed a sharp rise to 18.3 mln in the fourth. The ceilings were to back up its newly restored fixed prices of around 18 dlrs a barrel. When signs first emerged last Friday that OPEC was contemplating cutting the planned fourth quarter ceiling, spot prices of the most widely traded crude oil, Britain's Brent Blend, surged 30-40 cents a barrel. Traders said the trend continued in a cautious rally this morning in London, taking quoted levels up to around 19.25/35 dlrs, compared with 18.45/50 dlrs in the middle of last week. Most traders on international oil markets reacted bullishly to news of the final agreement. They forecast tight supplies later in the year, when demand for oil increases with the onset of the Northern Hemisphere winter, and further rises in spot prices. "There will be a scramble for oil in the third and fourth quarters of this year" one trader said. "In the past three months we have already seen a rise in demand, particularly from the U.S., And I expect to see even higher prices" he added. Mehdi Varzi, analyst with stockbroker Kleinwort Grieveson in London, agreed. Varzi told Reuters that OPEC was if anything too cautious in setting the new output ceilings. "There is now a great chance that Brent crude oil will hit 20 dlrs a barrel in the next month," he said. Laurie Law, analyst at E.F. Hutton and Co Inc in New York, said over the weekend that she saw the spot price of West Texas Intermediate (WTI) rallying to around 22 dlrs by the end of the year from just over 20 dlrs now. WTI, the U.S. Benchmark crude, usually fetches a premium of 80 cents to one dlr over Brent. So far this year, spot Brent has held mostly between 18 and 19 dlrs a barrel. But some traders, fearing continued over-production by some OPEC members, sounded a note of caution over the new accord. Iraq has again refused to be a party to the agreement because other OPEC ministers turned down its repeated demand for the same production quota as its Gulf War enemy Iraq. In recent months Iraq has been producing 500,000 bpd above its assigned quota, and it could begin pumping a further 500,000 bpd when a new export pipeline comes on stream in September. According to Kuwaiti oil minister Sheikh Ali al-Khalifa al-Sabah, actual OPEC production in the fourth quarter could be well above the official ceiling at nearly 18 mln bpd. REUTER 29-JUN-1987 09:06:40.00 F f0838 reute d f BC-TECHNOLOGY 06-29 0099 By Catherine Arnst, Reuters BOSTON, June 29 - In the fast paced personal computer industry, millions can be made in six months, and such an opportunity may exist now for companies seeking to capitalize on the delay of a new IBM software standard. When International Business Machines Corp <IBM> announced its new generation of personal computers, the PS/2 family, in April, it also decided to establish a new operating system for the machines, a death sentence for the billions of dollars of software now in use on the existing system. Because IBM is the world's largest computer company - some 70 pct of the world's computers bear the IBM logo - most industry analysts, and even IBM's competitors, expect that within two years the new operating system, called OS/2, will be as commonplace as the current standard, MS-DOS, is now. "By 1989, at least one half to 60 pct of all personal computers will be sold with OS/2," predicted George Colony, president of the consulting firm Forrester Research Inc. But until then there is an opportunity, some analysts said, for firms selling advanced versions of MS-DOS, specialised multi-tasking software packages and Unix, an alternative to MS-DOS developed by American Telephone and Telegraph Co <T> that has developed a following among engineers and the federal government. OS-2, which IBM is developing with Microsoft Corp, the author of MS-DOS, will not be ready for another six months. IBM said last week that the product is on schedule but analysts and other software developers are skeptical, since delays in major new software products are commonplace. Initial acceptance of the new system will most likely be hindered by the disgruntlement of hardware and software vendors alike, who would prefer to keep making products that work with tried and true MS-DOS, according to Paul Cubbage, software analyst with the market research firm Dataquest Inc. Compaq, IBM's major personal computer competitor, has already said it will stick with the MS-DOS standard. Compaq president Rod Canion said recently their will be no "automatic mass migration" to OS/2. "(Advanced MS-DOS) applications will continue to meet a far broader set of users needs than OS/2 will supply long after it becomes available," he said. Cubbage acknowledged that "it will probably be a year or more before any really useful applications are available for OS-2," creating opportunities for multi-tasking programs. "But there comes a time when the memory limits of those gets to you," he said. IBM's new operating system was as big an event to the computer industry as the PS-2 announcement itself. The new computers, the most powerful of which will use Intel Corp's fast 80386 microprocessor, are expected to rejuvenate the sagging sales of the personal computer industry and already gave a big boost to IBM. Company officials said last week that 250,000 PS/2s were shipped in the 2-1/2 months since their introduction and IBM expect record pc sales ths year as a result. The enthusiasm for the PS-2 is particularly striking since the full potential of the powerful computers cannot be tapped until a new operating system or other high level software is available, analysts said. OS-2 will allow users to work on many different programs, or tasks, at once on a personal computer, ideally without any slowdown in operation, a capability the industry has long strived for. Microsoft is already promising alternatives to OS-2, in particular an advanced version of its Windows multitasking program, which is used in conjunction with MS-DOS. Microsoft chairman Bill Gates has suggested an advanced version of the program, Windows 386, will be announced in September and available six to eight weeks later, at a price of 100 dlrs and 300 dlrs. OS/2 is expected to cost 325 dlrs. Some software developers have said the the program, designed for 80386-based personal computers, may even be superior to OS/2 in allowing users to multitask applications without disruption. But several analysts commented that what users really want is a multi-taksing operating system for 80386-based personal computers, and so far that desire has been met primarily by a small Atlanta software publisher, The Software Link Inc. In late spring the company announced PC-MOS/386, a multi-tasking, multiuser operating system that is compatible with MS/DOS and works on 80386-based computers. The company said it filled 2,500 orders in the first four weeks of availability and expects shipments to reach 40,000 by year end. International Data Corp analyst Will Zachmann said Unix could be the most promising alternative to OS/2, even once the IVM system is available. IBM did not endorse Unix for any of its PS/2 models, although it did say that it would announce a version of its Advanced Interactive Executive (AIX), a Unix compatible operating system. But the federal government requires Unix compatability for most of its computer contracts, it is almost certain that other companies will provide Unix-style operating systems for the IBM systems. ATT itself two weeks ago introduced a version of Unix that is compatible with the 80386 microprocessor, although not IBM's computer specifically. Analysts saw the announcement as a move to get Unix accepted as a strong alternative to OS/2 before the IBM system has a chance to take off. Reuter 29-JUN-1987 09:07:10.44 RM f0839 reute u f BC-KUWAIT-SETS-HIGHER-19 06-29 0105 KUWAIT, June 29 - Kuwait, aided by the recovery in world oil prices, announced a mildly expansionary budget for 1987/88 with a 3.3 pct rise in the deficit to 1.38 billion dinars. Oil revenues, slashed by some 40 pct in the original budget for the 1986/87 year ending tomorrow, were forecast to rise 4.2 pct to 1.73 billion dinars in 1987/88, Finance Minister Jassim al-Khorafi said. This would account for 87.2 pct of total estimated income in the year starting on July 1 compared with 86.6 pct in original 1986/87 estimates, the Kuwait News Agency Kuna quoted him as saying. Spending by ministries and public institutions is forecast to be 3.4 pct higher at 3.16 billion dinars in 1987/88 after an 11 pct cut in the current fiscal year's budget. In addition the government, as is usual, will transfer a sum equal to 10 pct of total expected revenue to a special savings reserve for future generations. The minister made no mention of how the deficit would be covered. He also gave no actual outturn for spending and income in 1986/87. REUTER 29-JUN-1987 09:07:37.14 C G T f0841 reute u f BC-CHIRAC-ATTACKS-EC-COM 06-29 0109 PARIS, June 29 - Prime Minister Jacques Chirac has attacked budget proposals made by the European Community's executive Commission, saying they ignore efforts to cut spending, and added that divisions over the issue would be hard to resolve at this week's EC summit. The Commission has proposed radical changes in the way the member countries contribute to the budget, suggesting payments should be linked to economic output instead of tax revenue. But the richer northern nations such as Britain, West Germany and France are insisting on stricter spending controls before agreeing to any reform. "The proposals of the Commission, at the level they are being made, are not compatible with the efforts which each of our nations is making to reduce spending ... Therefore there is a big problem," Chirac said in a radio interview. EC leaders would also try to resolve a dispute on reforms of agricultural spending, largely to blame for an expected 5.7 billion dlr shortfall in the EC budget this year. Chirac said that West Germany, under pressure from its powerful farm lobby, was alone in opposing reforms to the common agricultural policy, while France shared a common position on the issue with the 10 other EC states. Reuter 29-JUN-1987 09:09:20.03 F f0847 reute f f BC-allis-chalmers 06-29 0011 ****** 29-JUN-1987 09:10:38.56 RM f0853 reute u f BC-METROLOGIE-ISSUES-73. 06-29 0095 PARIS, June 29 - French financial group Metrologie International said it is issuing 73.8 mln francs worth of stock option bonds with Banque Paribas as lead manager. The eight-year issue at par will carry interest of six pct payable on August 3. Existing shareholders will have priority subscription to the 1,000 franc nominal bonds on the basis of one bond for 14 shares held. Each bond will be accompanied by two warrants giving the right to subscribe to one 40 franc nominal share at a price of 580 francs. REUTER 29-JUN-1987 09:13:56.02 C M f0858 reute u f BC-SUPERTANKERS-ANCHOR-O 06-29 0133 BAHRAIN, June 29 - Two supertankers attacked in the Gulf by Iranian gunboats on Saturday have anchored off Bahrain for damage inspection, shipping sources said. The 224,607 tonne Norwegian ship Mia Margrethe and the Liberian-registered Stena Concordia, 273,616 tonnes, both came under fire off the Saudi Arabian coastline. Agents for the tankers in Bahrain told Reuters the extent of damage had not yet been estimated. Both ships will be inspected in Bahrain and may be repaired by the Arab Shipbuilding and Repair Yard Co. The U.S. Frigate Stark, damaged last month in an Iraqi air attack in the Gulf, left Bahrain early on Sunday and anchored four miles off shore. The vessel is due to return shortly to the U.S. for further repairs. Reuter 29-JUN-1987 09:17:11.24 F E f0868 reute f f BC-FIRST-CHICAGO-B 06-29 0013 ****** 29-JUN-1987 09:20:48.89 F f0876 reute b f BC-/ALLIS-CHALMERS-<AH> 06-29 0066 MILWAUKEE, Wis., June 29 - Allis-Chalmers Corp said the company and its domestic affiliates filed voluntary petitions for reorganization under Chapter 11 of the Federal Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The company said its business units outside the United States are not affected by the action. Allis-Chalmers said the rapid agreement was essential for its restructuring plan, announced March 4. However, the company said, "agreement could not be worked out within the short time frame available, and it was determined that the only practical alternative was to obtain court protection." "This protection enables us to keep on operating our business in the ordinary course while affording us time to work out our obligations and complete our operational restructure strategy." Allis-Chalmers said the proposal announced in March called for a complete restructuring of its obligations and capital structure as well as major structural changes in operations. The company said funds generated by U.S. operations are currently inadequate to meet its U.S. obligations, primarily due to the carryover from discontinued and drastically downsized businesses. It said funds produced by non-U.S. operations are not readily available to help meet those obligations, which include a health care program for retirees and debt service carried over from the larger Allis-Chalmers of earlier years. Allis-Chalmers said its U.S. cash flow exceeded a negative 24 mln dlrs in 1986 and was a negative two mln dlrs in the first quarter of 1987. The company has financed a portion of its debt service and other obligations through sales of assets and has relied on short-term waivers from its lenders to prevent defaults on principal and interest payments. Because of Allis-Chalmers' financial position, it said, new financing facilities were not available outside of Chapter 11, adding substantially all U.S. assets other than inventory are pledged as security for its debts. Reuter 29-JUN-1987 09:29:20.43 F E f0890 reute b f BC-/FIRST-CHICAGO-<FNB> 06-29 0088 CHICAGO, June 29 - First Chicago Corp said its First National Bank of Chicago subsidiary agreed in principle to acquire a 35 pct interest in Wood Gundy Corp, an international investment banking firm headquartered in Toronto. Under terms of the agreement, the bank, through its Canadian bank subsidiary, First National Bank of Chicago (Canada) will invest 271 mln canadian dlrs in a combination of newly issued common equity and convertible debentures of Wood Gundy, it said. First Chicago said it also agreed to invest additional funds jointly with Wood Gundy in venture capital and merchant banking businesses. Wood Gundy shareholders will retain 65 pct ownership, it said. First Chicago said its investment in Wood Gundy is consistent with recent legislation which removed ownership restrictions and broadened access to the Canadian securities industry. The proposed agreement is subject to approval of U.S. and Canadian regulatory agencies and completion of a definitive agreement. The transaction is expected to be completed on September 30, 1987, or as soon as possible thereafter, it added. First Chicago said the investment in Wood Gundy permits it to consolidate and enhance its present position in Canada and internationally, and provides the basis for future growth. Reuter 29-JUN-1987 09:31:56.53 F f0900 reute u f BC-LORIMAR-TELEPICTURES 06-29 0063 CULVER CITY, CALIF., June 29 - Period ended March 31 Oper shr loss 1.07 dlrs vs not applicable Oper net loss 49,098,000 vs n.a. Revs 240.5 mln Avg shrs 45,810,000 Year Oper shr loss 84 cts Oper net loss 36,609,000 Revs 766.2 mln Avg shrs 43,428,000 NOTE: Full name is Lorimar Telepictures Corp Prior-year comparisons not applicable. Lorimar and Telepictures merged in February 1986 Earnings exclude losses from discontinued operations of 13,562,000 dlrs, or 30 cts a share in the quarter and 21,992,000 dlrs, or 51 cts a share for the year Reuter 29-JUN-1987 09:34:49.51 F f0909 reute r f BC-PULLMAN<PMN>-COMPLETE 06-29 0103 PRINCETON, N.J., June 29 - Pullman Co said its PCII Acquisition Co subsidiary completed a previously announced tender for Clevite Industries Inc. Pullman said as of midnight June 26, 5,248,712 shares of Clevite common, 278,965 shares of nonvoting common and 1,913,194 warrants had been tendered. Including the 989,426 shares of nonvoting common stock Pullman has an option to buy from Prudential Insurance Co of America, the total shares and warrants represent about 99 pct of the common and nonvoting common of Clevite and 96 pct of the outstanding warrants. Reuter 29-JUN-1987 09:36:12.66 C G T f0915 reute u f BC-EC-LEADERS-BEGIN-BRUS 06-29 0078 BRUSSELS, June 29 - Leaders of the European Community (EC) began their two-day summit, with reform of the group's creaking finances heading the agenda, officials said. The 12 government leaders were joined by French President Mitterrand and their foreign ministers. The twice-yearly meeting will also examine some world issues, especially the Middle East, but diplomats said the group's cash crisis would dominate the talks. Reuter 29-JUN-1987 09:37:25.45 F f0921 reute r f BC-ALLIED-SIGNAL-<ALD>-S 06-29 0096 MORRIS TOWNSHIP, N.J., June 29 - Allied-Signal Inc and Schlumberger Ltd <SLB> said that Schlumberger has acquired Allied-Signal's Neptune International unit headquartered in Atlanta, Ga., for an undisclosed sum. Allied-Signal said Neptune produces water meters and flow measurement equipment and last year had sales of 80 mln dlrs. The company said Schlumberger's activities include providing oil field services to locate and produce oil and gas, and the manufacture of electricity, gas and water meters for utilities. Reuter 29-JUN-1987 09:37:48.64 F f0923 reute u f BC-DI-GIORGIO-<DIG>-OFFE 06-29 0099 SAN FRANCISCO, Calif., June 29 - Di Giorgio Corp <dig> said it received an unsolicited letter from <Gabelli and Co Inc> proposing a Di Giorgio recapitalization in which stockholders would receive 20 dlrs a share in cash and certain securitites, including subordinated notes, preferred stock and new common stock. Di Giorgio said the letter estimates the total value of these securities at eight dlrs per share. It also said any transaction is subject to completion of a due dilligance investigation and the obtaining of necessary financing. After Di Giorgio's board and investment bankers have evaluated the letter, they will respond, the company said. Reuter 29-JUN-1987 09:40:24.03 F f0937 reute f f BC-CTS-CORP-CUTS-D 06-29 0009 ****** 29-JUN-1987 09:41:12.77 F f0944 reute h f BC-RYZHKOV-CALLS-FOR-SOV 06-29 0107 MOSCOW, June 29 - Soviet Prime Minister Nikolai Ryzhkov described the Soviet Union's economic management system as obsolete and called on the Supreme Soviet, the nominal parliament, to adopt a draft law on major economic reform. In a speech to the 1,500 member body, Ryzhkov said excessive central control by Moscow-based ministries and wasteful use of resources had led to a situation where 13 pct of Soviet industrial enterprises were making a loss in 1986. He said the public faced acute food and housing problems and a "shadow economy" was growing because the state could not meet demand. He added that the USSR had failed to keep up with the technology revolution. "The methods of the past system of economic management have become obsolete," Ryzhkov declared. "The need for change is evident and urgent." Kremlin leader Mikhail Gorbachev, who set the tone last week with a frank speech on the economy, was present during the speech. The legislation outlined by Ryzhkov, formally called the draft law on state enterprises, is expected to be approved by the Supreme Soviet, to take effect next January 1. Under the law, all enterprises are to become financially self-supporting by taking charge of income and outlay, with wages tied to profit in order to increase worker incentive. Firms will compete for orders from the state, which are due to decline as direct contracts between enterprises expand. Ryzhkov said the state planning agency, Gosplan, would be restructured to set national economic priorities instead of administering factories directly through five year plans. "We need a fundamentally new approach to yearly planning," he added, saying annual central plans would be abandoned from 1991 and enterprises charged with developing their own plans. He said scientific research should be integrated closely with industry to make up a technology gap with the West and enterprises should use market research to meet consumer demand. Ryzhkov blamed the state supply body, Gossnab, for allowing shortages to occur. He said Gossnab was hoarding 27 billion roubles worth of raw materials and semi-finished products of enterprises. He said Gossnab should help expand wholesale trade. Ryzhkov said improved economic management of consumer goods and services was required to stem increasing speculation and the growth of the black market economy. He called for a 10 fold increase in the number of cooperatives to help in this field. He said the price system needed radical revision to accurately reflect supply and demand, with the state setting prices only for "products of national importance" in changes to be fully in place by the next five year plan beginning in 1991. The practice of using credit to cover losses must also stop. Outstanding debts to the state had reached 40 billion roubles. He said there were proposals to replace the "cumbersome" banking system with six new banks -- a state bank and banks for foreign economic relations, agro-industry, construction, housing and commercial services, and credit. Ryzhkov said guarantees should be built into the law to prevent "the distortion of the rights of enterprises." But non-profitable enterprises would be declared bankrupt if efforts to make them self-supporting failed. Bemoaning the "economic illiteracy" of many managers, he called for the retraining of economic personnel. Ryzhkov said an immense amount of work lay ahead and "doing it on the go" would be difficult, but added, "We do not have time to stop and ponder." He said the changes should "give a new image to socialism." REUTER 29-JUN-1987 09:42:45.02 RM f0955 reute u f BC-FIRST-CHICAGO-<FNB>-T 06-29 0115 CHICAGO, June 29 - First Chicago Corp said its First National Bank of Chicago subsidiary agreed in principle to acquire a 35 pct interest in Wood Gundy Corp, an international investment banking firm headquartered in Toronto. Under the agreement, the bank, through its Canadian bank subsidiary, First National Bank of Chicago (Canada) will invest 271 mln canadian dlrs in a combination of newly issued common equity and convertible debentures of Wood Gundy. First Chicago also agreed to invest additional funds jointly with Wood Gundy in venture capital and merchant banking businesses. Wood Gundy shareholders will retain 65 pct ownership. Reuter 29-JUN-1987 09:43:21.13 RM f0960 reute u f BC-TERMS-FIXED-ON-NICHER 06-29 0104 LONDON, June 29 - The coupon on the 50 mln dlr, seven year, equity warrant eurobond for Nicherei Corp has been fixed at the indicated 2-7/8 pct, lead manager Yamaichi International (Europe) Ltd said. The exercise price was set at 974 yen per share representing a premium of 2.54 pct over today's close in Tokyo of 950 yen. The foreign exchange rate was set at 147.45 yen to the dollar. Nicherei also launched a 100 mln dlr, five year, equity warrant deal through Nikko Securities Co (Europe) Ltd. The coupon on this issue was fixed at 1-3/8 pct earlier today. REUTER 29-JUN-1987 09:46:12.32 C L f0967 reute u f BC-slaughter-guesstimate 06-29 0064 CHICAGO, June 29 - Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 260,000 to 265,000 head, versus 259,000 a week ago and 262,000 a year ago. Cattle slaughter is guesstimated in the 127,000 to 130,000 head range, versus 125,000 week ago and 138,000 a year ago. Reuter 29-JUN-1987 09:46:36.35 F f0968 reute d f BC-AMEV-HOLDINGS-TO-SELL 06-29 0088 NEW YORK, June 29 - AMEV Holdings Inc, the New York-based operating arm of NV AMEV <AMEV.AS> in The Netherlands and parent company of Security Mutual Finance Corp, said it reached a definitive agreement to sell Security Mutual to USA Financial Services Inc. Security Mutual, based in Decatur, Ala., operates 33 loan offices in fourh Southeastern states and has 90 mln dlrs in receivables outstanding. USA Financial is a subsidiary of Chicago-based United Savings of America. Reuter 29-JUN-1987 09:47:58.82 F f0971 reute r f BC-PGI-HOUTEX-BUYS-80-PC 06-29 0062 NEW YORK, June 29 - PGI-Houtex, a private Houston company, said it bought about 80 pct of the common stock of Seis Pros Inc at 2.85 dlrs a share from the founding stockholders. It said the total price for the 3,100,100 shares was 8,835,285 dlrs. Completion of the merger transaction is expected in three to four months. Reuter 29-JUN-1987 09:48:10.70 F f0973 reute r f BC-RITE-AID-CORP-<RAD>-1 06-29 0046 NEW YORK, June 29 - Shr 50 cts vs 40 cts Net 20.8 mln vs 16.4 mln Revs 531.7 mln vs 418.7 mln NOTE: 1987 first qtr net gain from discontinued operations was 47.1 mln or 1.64 dlrs per share. 1986 first qtr ended on May 31. Reuter 29-JUN-1987 09:51:14.13 F f0982 reute u f BC-MUNSON-GEOTHERMAL-<MG 06-29 0096 RENO, Nev., June 29 - Munson Geothermal Inc said power plant projects under development in Nevada have a completion value of about 70 mln dlrs. The company said an appraisal was conducted by Marshall and Stevens Inc. Munson said its financial adviser, Samuel Montagu Capital Markets, called for the appraisal. Montagu is to assist Munson in raising up to 20 mln dlrs of additional financing to complete existing installation at Brady Hot Springs, Nev. and create a new geothermal generating facility at Black Butte, Nev. Munson said it and its partners have invested more than 9.0 mln dlrs in the Brady project, a 9.7-megawatt facility that was appraised at a market value of 28.5 mln dlrs upon completion based on the income approach. Munson and partners have 30-year power sales contracts with Sierra Pacific Resources <SRP>. Reuter 29-JUN-1987 09:54:54.12 F f0992 reute r f BC-CIBA-GEIGY-ANNOUNCES 06-29 0067 ARDSLEY, N.Y., June 29 - <Ciba-Geigy Corp> said at the close of business on June 25, the approximate number of Spectra-Physics Inc <SPY> shares that it tendered was 116,271. The company said on June 26, its offer to purchase all outstanding shares of Spectra-Physics at 36.50 dlrs per share had been extended to 5 p.m. New York City time on July one. Reuter 29-JUN-1987 09:56:58.42 E F f0999 reute r f BC-core-mark-to-sell 06-29 0079 VANCOUVER, British Columbia, June 29 - Core-Mark International Inc said it agreed to sell the assets of its fast food subsidiary Sandy's Fast 'N Fresh to a subsidiary of Vista Group Ltd, a Los Angeles based investment banking firm. Core-Mark said undisclosed proceeds from the sale would be about 80 pct cash and 20 pct note. Part of the proceeds will be used to pay off existing bank lines of credit, the company said. Reuter 29-JUN-1987 09:57:44.95 C G f1003 reute u f BC-MADAGASCAR-TENDERS-FO 06-29 0041 KANSAS CITY, June 29 - Madagascar will tender today for two 10,000-tonne cargoes of soft red winter wheat for last-half July and first-half August shipments with PL480 financing, U.S. exporters said. Reuter 29-JUN-1987 09:59:24.22 F f1007 reute u f BC-MOSELEY-SECURITIES-<M 06-29 0095 BOSTON, June 29 - Moseley Securities Corp said Howard Berg resigned as chairman and chief executive officer. It said Frederick S. Moseley III assumed the position of chairman. In other management changes, Omar Kassem was named vice chairman and chief executive officer, and James Wolitarsky, executive vice president and chief financial officer, was appointed president and chief operating officer. The company also said it named a Management Committee consisting of Wolitarsky and six executive vice presidents. Reuter 29-JUN-1987 10:00:09.93 RM V f1008 reute f f BC-U.S.-SALES-OF-S 06-29 0015 ****** 29-JUN-1987 10:00:18.60 RM f1009 reute u f BC-GERMAN-1987-TRADE-SUR 06-29 0108 By Anthony Williams, Reuters BONN, June 29 - West Germany's foreign trade and current account surpluses are expected to decline only slightly in 1987 from their record levels last year, economists said. Figures released by the Federal Statistics Office in Wiesbaden showed that in the first five months of the year the trade surplus grew 15.7 pct compared with the same 1986 period to 47.2 billion marks. The current account surplus rose 9.8 pct to 33.7 billion marks. West Germany reported a 1986 current account surplus of 77 billion marks and a trade surplus of 113 billion marks. Economists had expected the rise of the mark from year-ago levels to have started biting more strongly into the nominal surpluses. The real surpluses are already declining. The Statistics Office said after cheaper import prices were taken into consideration, West Germany's imports by volume rose by more than three pct in the first five months. Exports had risen by only about one pct in real terms. The government has pointed to this stronger real rise in imports than exports when rejecting international pressure to boost domestic consumption. The Statistics Office said West Germany's trade surplus had risen in May to 10.6 billion marks, from 8.9 billion in April and 8.1 billion in May last year. The current account surplus had risen to 7.5 billion marks in May from 6.1 billion in April and 6.3 billion marks a year earlier. Exports rose strongly from the year-ago month by 6.6 pct to 43.31 billion marks, while May imports of 32.76 billion marks had risen only 0.8 pct in the year. The Ifo economic research institute in Munich said in a study published today that the trade surplus would probably only fall to around 101 billion marks this year, compared with the 113 billion mark 1986 record. It predicted a fall in the current account surplus to 61 billion marks from 77 billion. Ifo said this reduction would only be "a small step on the way to reducing imbalances in the world economy." Peter Pietsch, an economist with Commerzbank AG, predicted a 1987 trade surplus of 100 billion marks. He saw a slightly higher current account surplus than Ifo of possibly 65 billion marks. Helmut Henschel, with Westdeutsche Landesbank, put the 1987 trade surplus at 95 billion marks and the current account surplus at 60 billion marks. He said the strong rise in exports in May from the year-ago period was surprising but it probably reflected calendar factors. REUTER 29-JUN-1987 10:02:28.32 F Y f1022 reute b f BC-SEC-SEEKS-COURT-REVIE 06-29 0096 WHITE PLAINS, N.Y., June 29 - Texaco Inc said the U.S. Securities and Exchange Commission will urge the Texas Supreme Court to accept the Texaco, Pennzoil Co <PZL> case for review with respect to Commission Rule 10b-13 as it applies to the facts of the case. Texaco said it is pleased and encouraged by the SEC's decision, pointing out "Pennzoil's own counsel told the trial court that 'If Rule 10B-13 was an impediment, then in fact our contract was void' and further that, if the alleged contract was void, "we have no case.'" In a letter dated June 26, the SEC's general counsel told attorneys representing Texaco and Pennzoil the commission will urge the Texas Supreme Court to review the issue of federal securities law in the Texaco-Pennzoil case, Texaco said. "This is to inform you that the commission has determined to file a brief amicus curiae in the (Texaco-Pennzoil) litigation. The brief will focus on Commission Rule 10b-13 as it applies to the facts of this case, and will urge the Texas Supreme Court to accept the case for review with respect to that issue," the letter said. The SEC's general counsel said, "we currently anticipate that the brief will be filed around the week of July 20." An issue concerning SEC Rule 10b-13 is part of Texaco's application for a Writ of Error, which was filed with the Texas Supreme Court on June 15, the company said. "The SEC rule prohibits private agreements or arrangements to purchase a target company's stock while a tender offer by a prospective purchaser is pending," the company's statement said. In its application to the Texas Supreme Court, Texaco said, it points out that "on the day that Pennzoil made its alleged agreement to purchase Getty Oil stock (Jan. 3, 1984), it (Pennzoil) had outstanding a public tender offer for Getty Oil stock." Reuter 29-JUN-1987 10:03:41.07 RM V f1029 reute b f BC-/U.S.-HOME-SALES-FELL 06-29 0095 WASHINGTON, June 29 - Sales of new, single-family homes fell 14.9 pct in May from April to a seasonally adjusted annual rate of 616,000 units, the Commerce Department said. The department revised April sales downward to show a 1.0 pct increase from March to 724,000 units instead of the previously reported 7.6 pct gain. Last month's drop was the biggest since January, 1982, when sales fell 19.5 pct and brought the level of sales to its lowest point since December, 1984, when 597,000 units were sold, the department said. Home sales in May were 20.7 pct below the May, 1986, level of 777,000, the department said. Before seasonal adjustment, the number of homes actually sold in May totaled 58,000, down from 71,000 in April and 75,000 in May a year ago. The average price was 129,600 dlrs in May, up from 117,500 dlrs in April and 114,600 dlrs in May, 1986. The median price was 106,800 dlrs, up from 97,900 dlrs in April and 92,100 dlrs in May a year ago. Reuter 29-JUN-1987 10:06:55.86 RM f1041 reute r f BC-MAURITIUS-COULD-HAVE 06-29 0105 PORT LOUIS, June 29 - Mauritian Finance Minister Seetanah Lutchmeenmaraidoo said the island's first offshore bank could open in January 1988. The minister was announcing the creation of a committee of eight economists to look at ways of encouraging foreign investment, especially offshore banking. The committee, part of the government's plans to make Mauritius an international financial centre, is expected to submit its recommendations within three months. Lutchmeenmaraidoo also circulated a white paper on legislation to set up a stock exchange on the island. He said the exchange would be a powerful instrument of economic democratisation and the legislation would include incentives to encourage shareholding by a wide public. The government would also introduce a bill to protect investors and set up a vigilance committee with powers to suspend any company from the stock exchange, halt trading in its shares and take punitive measures for illegal practices. The stock exchange would probably become fully operational in the next five to 10 years, he added. REUTER 29-JUN-1987 10:09:10.76 F f1053 reute u f BC-CTS-<CTS>-HALVES-DIVI 06-29 0087 ELKHART, IND., June 29 - CTS Corp said its directors voted to halve the quarterly dividend to 12-1/2 cts from 25 cts, payable August five, record July seven. CTS said the action was taken to increase cash available for reinvestment in the company's business. Reduction in the quartelry dividend was not the result of any sudden, materially adverse change in business conditions or in response to any actions taken by its banks or creditors, according to a company statement. Reuter 29-JUN-1987 10:12:22.85 usa F f1063 reute d f BC-PENNWALT-<PSM>-INTROD 06-29 0101 PHILADELPHIA, June 29 - Pennwalt Corp said it is making a new refrigerant available as an alternative to chlorofluorocarbon (CFC) 12, a product suspected of depleting the earth's ozone layer. The company said the new product, called isotron 142b/22, is a blend of partially halogenated CFCs, and has less than five pct of the ozone depletion potential of CFC 12, which is fully halogenated. According to the company, the blend is currently used to replace CFC 12 as a propellant in aerosol containers, and has been successfully tested as a refrigerant. Pennwalt manufactures chemicals, pharmaceuticals and precision equipment. Reuter 29-JUN-1987 10:13:31.55 usa C G T L f1066 reute u f BC-/U.S.-CONGRESS-RESOLV 06-29 0140 WASHINGTON, June 29 - Congress's long-awaited agreement last Friday on an urgent bill to fund government operations is expected to clear the way for the Agriculture Department to unlock its coffers, closed since May 1. House and Senate negotiators, breaking an extended logjam over fiscal 1987 funding, agreed to appropriate 5.6 billion dlrs to the Commodity Credit Corp. The bill, which is expected to be approved by both Houses this week and signed into law soon by the president, would cover all farm program costs through September 30 and provide a 1.0 billion dlrs cushion, congressional sources said. Elevator operators, transportation companies and dairy processors have been especially hard hit by the freeze on CCC payments, now entering its ninth week, USDA sources said. Reuter 29-JUN-1987 10:13:48.55 RM f1067 reute f f BC-FRENCH-13-WEEK-T-BILL 06-29 0013 ****** 29-JUN-1987 10:15:42.17 cpi france RM f1074 reute u f BC-FRENCH-INFLATION-CONF 06-29 0078 PARIS, June 29 - French retail prices rose a confirmed 0.2 pct in May compared with a 0.5 pct rise in April and 0.2 pct in May last year, the National Statistics Institute (INSEE) said. The rise took the year-on-year inflation rate to 3.4 pct in May from 3.5 pct in April, and brought cumulative inflation over the first five months of this year to 2.0 pct compared with 0.7 pct for the same period of 1986. REUTER 29-JUN-1987 10:20:36.40 ukcanada nysetose F f1101 reute r f BC-BET-TO-APPLY-FOR-LIST 06-29 0094 LONDON, June 29 - BET Plc <BETL.L> said it will apply for listings on the New York and Toronto stock exchanges. BET said it filed its registration statement with the authorities in North America for the share issue cleared by its shareholders at the extraordinary meeting on March 19. The combined offering will involve up to 25.8 mln new BET shares in the form of American Depositary Receipts, with four BET shares per ADR. The shares were valued at 77.3 mln stg at Friday's London closing price of 300p. Reuter 29-JUN-1987 10:21:31.92 uk F f1103 reute u f BC-BRITISH-AIRWAYS-SEES 06-29 0075 LONDON, June 29 - British Airways Plc's <BAB.L> May passenger and cargo traffic figures provided evidence of recovery from last year's setbacks and this trend will be reflected in first quarter results due in August, chairman Lord King told the annual meeting. Earlier this month, the newly-privatised airline reported a 29 pct rise in passenger traffic figures for May, with cargo traffic up 22 pct. In the year to March, British Airways reported a drop in pre-tax profits to 162 mln stg from 195 mln previously. However, King said this result was satisfactory, considering the difficulties posed by the Chernobyl disaster and the U.S. Raid on Libya. He said British Airways intended to return its tour travel operations to profitability, when questioned by shareholders. In 1986/87, this division reported an operating loss of nine mln stg, the fifth year of losses. However, he said the group might reconsider its course of action if a turnaround seemed unlikely in the long-term. Reuter 29-JUN-1987 10:22:27.00 usa nyse F f1107 reute u f BC-ALLIS-CHALMERS-<AH>-L 06-29 0063 NEW YORK, June 29 - The New York Stock Exhcange said it is reviewing the eligiblity for continued listing of the common stock and 5.875 dlrs cumulative convertible preferred stock, series C, of Allis-Chalmers Corp in view of its announcement that it has filed a voluntary petition under Chapter 11 of the Federal bankruptcy code. Reuter 29-JUN-1987 10:22:59.97 netherlands RM f1109 reute u f BC-ABN-DETAILS-SYNDICATE 06-29 0114 AMSTERDAM, June 29 - Lead manager Algemene Bank Nederland (ABN) said it has completed the formation of a syndicate for Dutch chemical firm Akzo NV <AKZO.AS>'s three-year 14 pct, 50 mln Australian dlr bonds priced at 101.5 pct. Co-lead manager is Hambros Bank of London, ABN said. Co-managers are Bankers Trust International Ltd, Banque Bruxelles Lambert, Bank Mees & Hope, Banque Nationale de Paris, Deutsche Bank Capital Markets, Dresdner Bank, EBC Amro, Kredietbank NV, Van Lanschot Bankiers, Nederlandsche Middenstandsbank, Pierson, Heldring en Pierson, Rabobank, Vereins & Westbank and S.G. Warburg Securities. REUTER 29-JUN-1987 10:26:14.11 acqoilseedsunseedsoybean usaspain F f1128 reute u f BC-STALEY-<STA>-SELLS-IN 06-29 0082 ROLLING MEADOWS, ILL., June 29 - Staley Continental Inc said it sold its 50 interest in Sociedad Iberica de Molturacion, S.A. (Simsa), a soybean and sunflower seed processing company based in Madrid, Spain. Staley's investment in Simsa no longer fit its overall coporate strategy and an agreement to sell the interest was completed in May, it said. Staley said the Simsa transaction will not have a material effect on its balance sheet. Reuter 29-JUN-1987 10:34:00.24 acq F f1164 reute f f BC-martin-processi 06-29 0012 ****** 29-JUN-1987 10:38:48.50 canada E F f1182 reute r f BC-lac-files-to-issue 06-29 0045 TORONTO, June 29 - Lac Minerals Ltd said it filed a preliminary prospectus for an initial offering in Canada of flow-through common shares. Size and pricing of the issue have not yet been determined, the company said. Reuter 29-JUN-1987 10:39:26.40 usa F f1186 reute r f BC-HELENE-CURTIS-<HC>-SE 06-29 0080 CHICAGO, June 29 - Helene Curtis Industries Inc said due to increased expenditures budgeted to promote its new Salon Sectives brand, the company will likely produce a loss for the second quarter ending August 31. In the 1986 second quarter it earned 1,947,000 or 53 cts a share. Earlier the cosmetics company posted first-quarter net of 139,000 or four cts a share versus a loss in the year-ago period of 799,000 or 22 cts a share. Reuter 29-JUN-1987 10:40:15.61 usa F f1191 reute r f BC-CONQUEST-EXPLORATION 06-29 0034 HOUSTON, June 29 - Conquest Exploration Co said it will not extend the exercise date of its publicly traded warrants after July 15, the current expiration date. Reuter 29-JUN-1987 10:41:15.57 acq usa F f1198 reute r f BC-FRONTIER-<FRTR.O>-BUY 06-29 0066 MONTICELLO, N.Y., June 29 - Frontier Insurance Group Inc said it acquired the malpractice book of business generated by Medical Quadrangle Inc and Medical Professional Liability Agency Ltd, a producer of medical malpractice coverage. It said the acquisition will enable all of Frontier's medical malpractice coverage to be serviced internally. Reuter 29-JUN-1987 10:41:34.22 usa nasdaq F f1200 reute u f BC-TEXAS-AMERICAN-ENERGY 06-29 0032 NEW YORK, June 29 - Texas American Energy Corp said it will release information soon following the halt of its stock on the NASDAQ exchange. Reuter 29-JUN-1987 10:42:45.05 japanpoland nakasonejaruzelski RM f1202 reute u f BC-JAPAN-SETS-CONDITION 06-29 0106 TOKYO, June 29 - Japan said an international agreement on loans to Poland was needed before Tokyo extended fresh loans to Warsaw to help a Japanese car maker set up a factory there. Prime Minister Yasuhiro Nakasone explained the conditions during the first round of talks with the visiting Polish leader Wojciech Jaruzelski, foreign ministry sources said. They quoted Jaruzelski as saying of a private Japanese plan to export car production facilities to Poland, "If this project goes well, it will serve as an engine in future economic relations between Poland and Japan." Nakasone, speaking of the possibility of resuming extending official loans to Poland, said, "It is necessary that an agreement should be established at an international arena such as the Paris Club of creditor nations." He hoped that such an agreement will be achieved at an early date, but he did not make firm commitments about Japanese loans, the sources said. Along with western nations, Japan has witheld new official credits to Poland since February 1982, following the 1981 declaration of martial law in Poland. The Japanese car maker Daihatsu Motor <DMOT.T> and three trading houses including Mitsui Co Ltd plan to export production facilities to Poland's state-owned car maker FSO to make the Charade minicar, according to Mitsui officials. "We are pushing the plan on the premise of an official credit to be extended eventually," a Mitsui spokesman said. Nakasone also said that a joint Japan-Poland economic committee would discuss the proposed conclusion of an investment protection agreement later this year, the sources said. REUTER 29-JUN-1987 10:44:13.88 usa F f1208 reute r f BC-CORRECTED-FIDELCOR-<F 06-29 0090 PHILADELPHIA, June 29 - Fidelcor Inc said it will take a one-time 30 mln dlr special provision in the second quarter for possible losses in loans to developing countries. The corporation said it will be profitable in the quarter despite the action that will reduce quarterly net income by 23 mln dlrs, or 37 cts a share on a fully diluted basis. For the year-ago second quarter, Fidelcor reported earnings of 24.8 mln dlrs, or 95 cts a share. (Corrects spelling on company name) Reuter 29-JUN-1987 10:44:30.09 earn usa F f1209 reute u f BC-HELENE-CURTIS-INDUSTR 06-29 0032 CHICAGO, June 29 - Period end May 31 Shr profit four cts vs loss 22 cts Net profit 139,000 vs loss 799,000 Revs 101.9 mln vs 86.8 mln Reuter 29-JUN-1987 10:45:05.75 canada E F f1210 reute r f BC-sterivet-has-fda 06-29 0092 TORONTO, June 29 - Sterivet Laboratories Ltd said the U.S. Food and Drug Administration granted expedited review status for its proprietary drug Navicon. The company said future marketability of Navicon in the U.S. will be greatly facilitated by receiving expedited review status and the company should achieve wide penetration once FDA approval for the drug is received. Navicon is a drug designed to treat navicular disease which affects the feet of one-third of all horses aged between five and 15. Reuter 29-JUN-1987 10:49:56.57 usa conable C f1227 reute d f AM-CONABLE 06-29 0135 NEW YORK, June 29 - The World Bank is prepared to play a more aggressive role in promoting Third World development, bank president Barber Conable said in a magazine interview. "Our plans include initiatives on the debt front, as well as greater emphasis on debt-equity swaps and the promotion of private investment in Third World countries through our affiliate, the International Financial Corporation," Conable told Newsweek International. Conable, who has just completed his first year as head of the World Bank, said the bank's mission remains the development of Third World nations. "The bank is primarily a development institution, not a debt-management agency. But debt must be managed effectively or it hampers development," he told Newsweek. Conable said the bank must step in to help relieve the debt crisis, which has prompted a number of U.S. commercial banks to write off a portion of their Third World loans. Conable defended his own reorganization plan for the World Bank, which he said was aimed at improving efficiency and limiting a growing bureaucracy. And he said environmental considerations will play a larger role in the evaluation of proposed projects. Reuter 29-JUN-1987 10:51:30.28 earn canada E F f1234 reute r f BC-le-groupe-videotron 06-29 0035 MONTREAL, June 29 - Period ended May 31 Shr 41 cts vs 35 cts Net 15.4 mln vs 11.9 mln Revs 234.4 mln vs 96.6 mln Avg shrs 38.0 mln vs 34.4 mln Reuter 29-JUN-1987 10:51:36.38 usa F f1235 reute d f BC-D-AND-N-<DNSB.O>-APPL 06-29 0079 HANCOCK, MICH., June 29 - D and N Savings Bank said it aapplied to the Federal Home Loan Bank Board for approval to open three new branches inside K mart Corp <KM> stores in Michigan. It said one of the branches being applied for is in Grand Rapids, Mich., which would bring to five the number of K mart locations in that city with D and N Bank Marts. It said the other applications are for branches in Flint K mart stores. Reuter 29-JUN-1987 10:52:16.44 earn usa F f1238 reute d f BC-INTER-TEL-INC<INTLA.O 06-29 0090 CHANDLER, ARIZ., June 29 - Oper shr three cts vs one ct Oper net 210,000 vs 67,000 Revs 10,252,000 vs 8,929,000 Avg shrs 7,933,000 vs 8,553,000 Six mths Oper shr five cts vs two cts Oper net 420,000 vs 133,000 Revs 20.3 mln vs 17.1 mln Avg shrs 7,952,000 vs 8,551,000 NOTE: 1987 earnings exclude gain from utilization of tax loss carryforwards of 125,000 dlrs, or one ct a share in the quarter and 150,000 dlrs, or two cts a share for the six months Reuter 29-JUN-1987 10:52:21.47 acq usa F f1239 reute d f BC-NEW-GENERATION-PRODUC 06-29 0064 SALT LAKE CITY, Utah, June 29 - <New Generation Products Inc> said it has acquired a 20 pct ownership in <Personal Protection Technolgies Inc>. New Generation said Personal Protection is developing a group of personal care products, which are effective in killing a variety of viruses and bacteria on contact, for U.S. and export markets. Reuter 29-JUN-1987 10:52:27.80 usa F f1240 reute d f BC-ADVANCED-NMR-SYSTEMS 06-29 0085 WOBURN, Mass., June 29 - Advanced NMR Systems Inc said it extended the exercise period for its class A and class B warrants by one year. The company said class A warrants, entitling the purchase of one share in Advanced Systems and one class B warrant at four dlrs per unit, will now be execrisable unitl Aug 18 1988. The class B warrants, entitling the purchase of one share of common stock at six dlrs per share, are now exercisable unitl Aug 18 1989. Reuter 29-JUN-1987 10:53:07.49 earn usa F f1244 reute d f BC-TOWN-AND-COUNTRY-JEWE 06-29 0047 NEW YORK, June 29 - Shr 15 cts vs 12 cts Net 1,240,939 dlrs vs 989,714 dlrs Revs 32.9 mln dlrs vs 21.1 mln dlrs Note: first quarter ended May 31. The company's full name is Town and Country Jewelry Manufacturing Corp Reuter 29-JUN-1987 10:53:15.48 earn usa F f1246 reute d f BC-DATA-ARCHITECTS-INC-< 06-29 0048 WALTHAM, Mass., June 29 - Shr 19 cts vs 16 cts Net 502,000 dlrs vs 401,000 dlrs Revs 8.8 mln dlrs vs 6.7 mln dlrs Six mths Shr 38 cts vs 29 cts Net 989,000 dlrs vs 745,000 dlrs Revs 16.3 mln dlrs vs 12.5 mln dlrs Reuter 29-JUN-1987 10:53:23.35 acq usa F f1247 reute b f BC-MARTIN-PROCESSING-<MP 06-29 0104 MARTINSVILLE, Va., June 29 - Martin Processing Inc said its board approved an agreement to be acquired by Courtaulds Plc <COU.L> for 20 dlrs a share. The company said the transaction is valued at more than 99 mln dlrs, based on its 4,963,620 shares of stock outstanding. It said Courtaulds has privately agreed to purchase a majority of Martin's common from trusts established by Julius Hermes for 20 dlrs a share. It said Courtaulds intends to conduct a tender offer for all the Martin stock it does not own, beginning as soon as necessary documents are prepared. Reuter 29-JUN-1987 10:53:31.85 earn usa F f1249 reute d f BC-LIFETIME-CORP-<LFT>-Y 06-29 0037 NEW YORK, June 29 - Shr 15 cts Net 3.6 mln dlrs Revs 96.9 mln dlrs Note: the company said year-ago figures are not comparable due to its reverse merger last year Reuter 29-JUN-1987 10:53:50.84 earn usa F f1252 reute d f BC-UNIVERSITY-GENETICS-C 06-29 0063 WESTPORT, Conn., June 29 - Shr loss two cts vs loss four cts Net loss 199,010 dlrs vs loss 398,202 dlrs Revs 1,284,939 dlrs vs 359,440 dlrs Nine mths Shr loss 10 cts vs loss 14 cts Net loss 973,542 dlrs vs loss 1,298,203 dlrs Revs 3.9 mln dlrs vs 1,269,098 dlrs Note:the third quarter ended April 30 Reuter 29-JUN-1987 10:54:53.49 nigeria C G T M f1254 reute d f BC-NIGERIAN-MILITARY-DEL 06-29 0100 LAGOS, June 29 - Nigeria's military rulers will transfer power to an elected civilian government in 1992, two years later than previously planned, at the conclusion of a gradual handover starting this year, official sources said. The Armed Forces Ruling Council has approved the main details of the transition, which will probably be announced this week by the President, General Ibrahim Babangida. Among other important decisions, the council has also chosen to limit the number of political parties under civilian rule to two, the sources added. Reuter 29-JUN-1987 10:56:16.55 cpi luxembourg ec RM f1263 reute u f BC-EC-ANNUAL-INFLATION-F 06-29 0100 LUXEMBOURG, June 29 - The European Community's annual inflation rate fell marginally to 3.2 pct in May from 3.3 pct in April, the EC's statistics office Eurostat said. Prices in the 12-nation bloc rose 0.2 pct in May after 0.6 pct in April. But the annual rate stayed below that of the U.S. For the second month in succession, following the release of figures showing U.S. Inflation of 3.8 pct in both April and May. However, Eurostat said the EC was still beaten by Japan, where prices were provisionally 0.1 pct lower in May than a year earlier. REUTER 29-JUN-1987 10:56:46.77 acq usa F f1267 reute u f BC-BSN-<BSN>-HAS-PURCHAS 06-29 0066 DALLAS, June 29 - BSN Corp said it purchased MacGregor Sporting Goods' common stock in recent open market transactions. BSN said its position is less than the five pct ownership which would require specific disclosure. The company will continually review its position and may nelect to increase or decrease the number of shares owned, it added. Reuter 29-JUN-1987 10:58:02.97 earn usa F f1274 reute d f BC-TELECOMMUNICATIONS-NE 06-29 0035 KEARNY, N.J., June 29 - Shr 38 cts vs 47 cts Net 968,000 dlrs vs 1,053,000 dlrs Revs 15.4 mln dlrs vs 12.6 mln dlrs Note:the year ended March 31. Reuter 29-JUN-1987 11:01:04.56 usa A RM f1285 reute u f BC-U.S.-CONGRESS-RESOLVE 06-29 0111 WASHINGTON, June 29 - Congress's long-awaited agreement last Friday on an urgent bill to fund government operations is expected to clear the way for the Agriculture Department to unlock its coffers, closed since May 1. House and Senate negotiators, breaking an extended logjam over fiscal 1987 funding, agreed to appropriate 5.6 billion dlrs to the Commodity Credit Corp. The bill, which is expected to be approved by both Houses this week and signed into law soon by the president, would cover all farm program costs through September 30 and provide a 1.0 billion dlrs cushion, congressional sources said. Reuter 29-JUN-1987 11:01:22.16 earn usa F f1287 reute r f BC-HOVNANIAN-ENTERPRISES 06-29 0032 NEW YORK, June 29 - Shr 27 cts vs 14 cts Net 5,664,000 vs 2,812,000 Revs 68.2 mln vs 54.7 mln Avg shrs 21,254,054 vs 20,167,714 Reuter 29-JUN-1987 11:01:57.43 trade belgiumusa ec F f1290 reute h f AM-COMMUNITY-PASTA 06-29 0119 BRUSSELS, June 29 - Talks between the European Community (EC) and the United States have failed to settle a trade dispute over pasta, an EC Commission spokesman said. Diplomatic sources said the dispute could provoke new trade friction unless it was settled soon. Washington is insisting that the EC comply with what it regards as an unambiguous ruling from the world trade body GATT and cut export subsidies which have allowed Italy to take an increasing share of the U.S. pasta market. The EC provides subsidies of about 16 cents a pound on pasta exports. The spokeswoman said the talks foundered on the question of how much the subsidy should be cut. Reuter 29-JUN-1987 11:02:18.67 usa F f1293 reute d f BC-UNITED-BANK-<USBK.O> 06-29 0053 VIENNA, VA., June 29 - United Savings Bank said it filed an offering circular with the Federal Home Loan Bank Board covering 13 mln dlrs of its convertible subordinated debentures due 2012. It said Johnston, Lemon and Co Inc is acting as representative of the underwriters. Reuter 29-JUN-1987 11:03:21.65 usa reaganjames-miller V RM f1297 reute r f AM-BUDGET (SCHEDULED) 06-29 0089 By Irwin Arieff, Reuters BEAVER CREEK, Colo., June 29 - President Reagan is willing to compromise with Democrats in Congress on a plan to raise new federal revenues next year if they back his plan to reform the budget process, White House Budget Chief James Miller said. "If the Democrats want to insist that the president say whatever is agreed to is a tax increase, then they'd better just forget it because he's not going to do that," Miller said in an interview with Reuters. "But there are a lot of revenues other than those the president proposed (in his January budget plan), I think, that we might look seriously at," he added. The Reagan budget, which has been widely criticized by both Democrats and Republicans in Congress, envisages raising 22 billion dlrs in new revenues through the sale of a package of government assets and new fees on certain federal services. President Reagan has repeatedly vowed to veto any tax increase voted by Congress for the 1988 financial year, arguing that cutting domestic spending was a better way to reduce the huge federal deficit. The deficit, which totaled 221 billion dlrs last year, is expected to decline to about 175 billion dlrs this year and would fall to about 140 billion dlrs next year under a budget blueprint recently approved by Congress. The one trillion dlr congressional budget plan contains about 19 billion dlr in additional revenues from new taxes in the government's budgetary year beginning October 1. The plan does not say how the additional revenues are to be raised, leaving it to the House Ways and Means and Senate Finance committees to fill in the details later this year. Miller appeared to be signaling that the president might consider some sort of tax increase despite his frequently stated rejection of the concept. However, Miller declined to say which new revenue sources might be acceptable to the president. "I think it would be counterproductive for me to (set out options) which might suggest that we have one thing or another in mind," the White House budget chief said. He cautioned Congress about the political repercussions of certain moves, such as raising excise taxes on beer, cigarettes or telephone service, or raising corporate or personal income tax rates. "I think that those in Congress who think it will be a simple matter to go along with some increase in excise taxes are underestimating what they would be getting themselves into," he said. "What they don't really realize is that the political opposition they are going to feel to excise taxes is going to be a lot hotter tahn the political opposition to user fees, in certain ways, or asset sales," he continued. "But there are a lot of other things and revenue issues in government that probably ought to be addressed," he said. Before agreeing to a revenue package, the president would insist on reform of the budget process, Miller said. "The president is not going to take a sucker punch. He's not going to sit down and try to negotiate out a budget when we can't be sure that whatever the president agrees to in fact will be delivered," he emphasized. "We'd like to have a budget process that gives us a contract, so that if the president agrees to something, he can depend on its coming through." After returning to the United States from the economic summit in Venice earlier this month, President Reagan revived an earlier unsuccessful campaign for budget reform, calling for a constitutional amendment requiring a balanced budget and the power -- called a "line-item veto" -- to block individual items in congressional spending bills. At the Venice summit, U.S. trading partners called on Washington to cut its budget deficit to help reduce global trade imbalances. Miller told an Italian journalist here yesterday that U.S. trading partners "have to have faith and trust in the ability of the United tates to deal with its problems." He said a deficit cut of about 40 to 45 billion dlrs a year "is about the optimal rate of reduction in the deficit. I don't think we can end the deficit overnight... I think we've got to have a gradual reduction over a period of several years." Miller is in Beaver Creek attending the sixth annual World Forum, a gathering of current and former government officials and business representatives discussing world economic and political issues. Reuter 29-JUN-1987 11:05:20.30 uk RM f1311 reute u f BC-EXERCISE-PRICE-SET-ON 06-29 0086 LONDON, June 29 - The exercise price for the warrants attached to the 100 mln dlr eurobond for Finland's Nokia Oy <NOKS.HE> has been fixed, lead manager Morgan Guaranty Ltd said. The five year, par-priced, deal was launched last Thursday and pays five pct. Each 5,000 dlr bond has 134 warrants attached which are each exercisable into one Nokia free preferred share at a price of 169.4 Finnish markka. This compares with today's closing price of 178 markka. REUTER 29-JUN-1987 11:05:49.19 bangladesh C G L M T f1315 reute r f BC-BANGLADESH-GOVERNMENT 06-29 0186 DHAKA, June 29 - The Bangladesh government dropped from its proposed budget some tax increases that had provoked opposition parties to call a national strike for tomorrow. Prime Minister Mizanur Rahman Choudhury told Parliament last night the taxes were dropped to help farmers and the poor, but opposition groups said the strike was still on. Choudhury also said the price of soybean oil and the excise duty on some fabrics would be lowered. He said a proposed additional two pct land development tax from the budget, which is for fiscal 1987/88 starting July 1, had been dropped. Choudhury said the tax withdrawal would cause a revenue shortfall of 130 mln taka. His announcement came shortly after the 21 opposition parties called a six-hour nationwide strike for tomorrow. Opposition parties had said the taxes would affect the poor and middle class and leave the wealthy untouched, and the secretary-general of the opposition Bangladesh Nationalist Party, K.M. Obaidur Rahman, said the government's action would not avert tomorrow's strike. Reuter 29-JUN-1987 11:06:10.05 acq usa F f1318 reute r f BC-UTILICORP-<UCU>-UNIT 06-29 0109 KANSAS CITY, Mo., June 29 - Utilicorp United Inc said its UtilCo Group subsidiary completed the purchase of a 38 pct interest in Westwood Energy Properties Limited Partnership for about 10 mln dlrs. The company said the partership is building and will operate a 30-megawatt electric generation facility in Schuykill County, Penn., scheduled to begin commercial operation in July. It said the 38 pct interest was sold by Westwood Funding Corp, a wholly-owned subsidiary of Combustion Engineering Inc <CSP>. Westwood Funding retains an interest in the partership and serves as a general partner, it said. Reuter 29-JUN-1987 11:06:18.74 gas usa F Y f1319 reute r f BC-EXXON-<XON>-EXTENDS-M 06-29 0113 HOUSTON, June 29 - Exxon Co U.S.A. said it is extending marketing of its mid-grade unleaded gasoline, Exxon Plus, into the Houston and Dallas/Fort Worth metropolitan areas beginning early next month. Exxon Corp's domestic subsidiary is already marketing the 89-octane unleaded gasoline along much of the East Coast. As it introduces the third unleaded grade, Exxon noted, it no longer offers a leaded gasoline in the market, except in some rural areas where leaded gaosline will be made available to distributors who have a substantial need for the product to serve customers whose equipment was designed for leaded fuel. Reuter 29-JUN-1987 11:06:36.39 canada E F f1322 reute r f BC-labatt-has-carlsberg 06-29 0103 TORONTO, June 29 - John Labatt Ltd said it acquired the Canadian brewing and marketing rights to the Carlsberg group of brands effective July 1, 1988. Carlsberg products are now marketed in Eastern Canada by Carling O'Keefe Ltd, wholly owned by Elders IXL Ltd <ELXA.S>. Labatt said its agreement with United Breweries International Ltd, of Copenhagen, Denmark, is effective July 1, 1988 and provides Labatt with the rights to Carlsberg, Carlsberg Light, Carlsberg Bock and Carlsberg Gold. Labatt did not disclose financial terms of the marketing agreement. Reuter 29-JUN-1987 11:07:44.47 acq usa F f1327 reute r f BC-CORADIAN-<CDIN.O>-STA 06-29 0067 ALBANY, N.Y., June 29 - Coradian Corp said a group led by privately held Sage Equities Group agreed to buy a 7.6 pct interest in Coradian. In connection with the agreement, the company said it sold 666,667 shares at 75 cts a share. It said that in addition to common stock, Sage Equities will receive 667,667 warrants exercisable at 1.50 dlrs a share. Reuter 29-JUN-1987 11:09:59.02 earn usa F f1339 reute r f BC-SIKES-CORP-<SKA>-1ST 06-29 0043 LAKELAND, Fla., June 29 - Shr 24 cts vs 18 cts Shr diluted 21 cts vs 18 cts Net 2,108,805 vs 1,605,278 Sales 28.9 mln vs 24.2 mln NOTE: Share results reflect two for one stock split to be paid July eight Reuter 29-JUN-1987 11:10:15.63 grainryewheatbarleyoatoilseedrapeseedsugar denmark C G T f1341 reute r f BC-DANISH-CROPS-TWO-WEEK 06-29 0138 COPENHAGEN, June 29 - Danish crops are up to two weeks behind normal growth levels due to the cold weather in May and June, when mean temperatures were up to four centigrade below average, the State Plant Cultivation Bureau said in a report. At the season's first crop test on June 26, the bureau rated crops at an overall 94, the same as on June 20 last year. The figure of 100 represents normal in a year of average growth conditions with no crop damage. The test gave ratings expressed as a factor of 100, as follows - winter wheat 96 (last year 91), winter rye 97 (98), winter barley 92 (90), spring barley 94 (98), oats 96 (98), fodder and sugar beets 87 (96), winter rapeseed 98 (94), spring rapeseed 94 (98). Final harvest figures for 1986 were not yet available. Reuter 29-JUN-1987 11:10:21.30 usa F f1342 reute r f BC-PIRELLI-GROUP-<PIRI.M 06-29 0057 NEW YORK, June 29 - Pirelli group unit Pirelli Cable Corp's communications division said it signed a cable supply contract with NYNEX Corp <NYN> unit, NYNEX Enterprises. The company said Pirelli will supply NYNEX with fiber optic cables over the next year. Terms of the contract were not disclosed. Reuter 29-JUN-1987 11:11:40.63 usa F f1349 reute r f BC-UNICORP-<UAC>-REPORTS 06-29 0096 NEW YORK, June 29 - Unicorp American Corp said it sold three properties in the Boston area for aggregate proceeds of about 6,300,000 dlrs, resulting in a pre-tax gain of of about 3,200,000 dlrs. Income tax expense totaling about 1,700,000 dlrs reduced this gain to about 1,500,000 dlrs for financial reporting purposes, the company said. The properties included an industrial building in Westwood, Mass., a building containing retail stores in Lexington, Mass., and an office building in Bedford, Mass., the company added. Reuter 29-JUN-1987 11:14:22.33 F f1355 reute f f BC-kodak-is-distri 06-29 0011 ****** 29-JUN-1987 11:14:36.70 tradeteacoffeecottoncastor-oil india C f1356 reute d f BC-INDIA-RELAXES-RULES-F 06-29 0135 NEW DELHI, June 29 - The Reserve Bank of India, RBI, announced new rules to allow exporters of 25 products to use foreign exchange up to 10 pct of their firm's total annual export earnings for export promotion abroad. The move is designed by the government to improve India's trade deficit. Products eligible for the new Blanket Exchange Permit Scheme include tea bags, cigarettes, coffee, leather, various textiles, chemicals, pharmaceuticals, plastics, engineering and electronic goods, ready-made garments, processed food, sports goods, fabricated mica and consultancy services. The scheme replaces current rules which allow different amounts of foreign exchange to be used only when firms attain a minimum annual turnover prescribed for each product. RBI said under the new rule, 16 other products will qualify, on a discretionary basis, for overseas promotional spending of not more than two pct of the freight-on-board value of annual export earnings. These include oil cakes, cereals, raw cotton, raw and semi-processed leather, gems, castor and sandalwood oil, psyllium husks and seeds, opium and various mineral ores. RBI said exporters of products not covered by either of the two groups will be eligible to use up to five pct of their freight-on-board value of their annual export earnings. Industry sources said the new entitlements, considerably higher than the previous limits, are also more flexible because holders of new permits no longer need to frequently apply to RBI for release of foreign exchange for export purposes. Reuter 29-JUN-1987 11:15:50.48 usa F f1364 reute r f BC-TEXTRON-<TXT>-UNIT-ST 06-29 0089 FORT WORTH, Texas, June 29 - Textron Inc unit Bell Helicopter Textron Inc said it and two United Auto Workers union locals agreed to a new three-year contract, ending a three week strike. It said production and maintenance members of Local 218 had been on strike for three weeks while clerical members of Local 317 had been on strike for a week. A total of 4,000 people were out on strike. A company spokesman said the strike was based on a disagreement over the method of future pay rises. The spokesman said the company's original offer was based on lump sum payments over three years at six pct in the first year, four pct in the second year and three pct in the third. He said management and the unions later agreed to a system that combined general pay increases with lump sum payments over the life of the contract. Reuter 29-JUN-1987 11:19:41.44 earn usa F f1380 reute r f BC-INTER-TEL-INC-<INTLA. 06-29 0055 CHANDLER, Ariz., June 29 - Shr four cts vs one ct Net 335,000 vs 67,000 Rev 10.1 mln vs 8.7 mln Avg shares 7,933,000 vs 8,553,000 Six Months Shr seven cts vs two cts Net 570,000 vs 133,000 Rev 19.9 mln vs 16.8 mln Avg shares 7,952,000 vs 8,551,000 NOTE: Qtr includes extraordinary gain of 125,000 dlrs, or one ct a share, while six months' net includes gain of 150,000, or two cts a share. Reuter 29-JUN-1987 11:21:09.19 acq F f1389 reute b f BC-ENTERTAINMENT-M 06-29 0014 ****** 29-JUN-1987 11:22:00.63 usa F E f1396 reute r f BC-UNISYS-<UIS>-OFFERS-N 06-29 0109 DETROIT, June 29 - Unisys Corp said its public sector systems division will market the ICON Series, an enhanced microcomputer system for use in the classroom. It said the computer, made by Ontario based <Meridian Technologies Inc>, allows students and teachers to run multiple programs simultaneously. It said the computer costs 1,895 dlrs with a one megabyte of memory. It said the ICON Series is an enhanced version of an instructional system marketed in Canada since 1984. Unisys said it will market the ICON Series in the U.S. under an exclusive licensing agreement with Meridian Technologies. Reuter 29-JUN-1987 11:26:43.81 usa F f1408 reute b f BC-PENNZOIL-(PZL)-ADVISE 06-29 0116 HOUSTON, June 29 - Pennzoil Co said it was advised by the Securities and Exchange Commission that that commission will file an amicus curiae brief in the Texas Supreme Court concerning the Pennzoil/Texaco Inc (TX) litigation, but said it was not aware whether that brief will adopt the position of one of the litigants. Pennzoil said the brief is expected to be filed about July 20. "We do not know whether the brief will adopt the position of one of the litigants or simply be an inquiry and request for clarification of the reasoning of the two previous decisions in this matter, both of which have been favorable to Pennzoil, a Pennzol spokesman said. Pennzoil said that regardless of the focus of the brief "Pennzoil will make an appropritate response in the court in due course." Earlier today, Texaco said that in a letter dated June 26, the SEC's general counsel told attornys representing Texaco and Pennzoil that the commission will urge the Texas Supreme Court to review the issue of federal securities law in the case between the two companies. The litigation stems from Texaco's purchase of Getty Oil Co in 1984 after Pennzoil had made an offer from Getty. Reuter 29-JUN-1987 11:29:59.47 usa F f1416 reute u f BC-KODAK-<EK>-MARKETING 06-29 0062 ROCHESTER, N.Y., June 29 - Eastman Kodak Co said it is marketing a test kit for the AIDS antibody developed and manufactured by Cellular Products Inc. Kodak said the kit is the first in a series of diagnostic tests for certain retroviruses, infectious diseases, and various forms of cancer the company will distribute. A Kodak spokesman would not give financial details of the agreement with Cellular Products. The spokesman said the AIDS test is the first biotechnology product Kodak will market. He said the test is mainly suited for blood banks and blood products supply businesses. He told Reuters that Kodak does not yet have a contract for the test with any businesses but several are pending. Kodak said its AIDS test will cost about one dlr to 1.50 dlrs each, depending on volume. A positive test means there has been contact with the AIDS virus, but it does not mean that a person has or will develop AIDS. Kodak also said it also market a test developed by Cellular that will detect a virus causing adult T-cell leukemia. It said that test is pending regulatory approval at the Food and Drug Administration. Reuter 29-JUN-1987 11:30:17.86 acq usa F f1417 reute r f BC-DATACARD-<DATC.O>-ADO 06-29 0097 MINNEAPOLIS, June 29 - DataCard Corp said it adopted a dividend rights plan in response to Deluxe Check Printers Inc <DLX> having agreed to sell its 38 pct interest in DataCard to National Computer Systems Inc <NLCS.O>. DataCard declared a dividend distribution of one preferred stock purchase right on each outstanding share its common stock. The dividend is designed to deter National Computer or other potential suitors from preventing DataCard from evaluating all alternatives to maximize shareholder value, DataCard said. National Computer told Reuters June 22 it could make a bid for DataCard. On June 25 DataCard filed suit in Hennepin County District Court in Minnesota to block the sale of the 38 pct stake of its stock to National Computer. In announcing the rights plan, DataCard said it "is not designed to deter takeovers that would be consistent with the objective of maximizing stockholders value to all of DataCard's stockholders." The rights will not become exercisable until 10 days after an announcement that a person or group has acquired beneficial ownership of 44 pct or more of DataCard's common stock. Once exercisable, each right would entitle a holder to buy 1/500th of a share of DataCard Series A junior participation preferred Stock for 35 dlrs. Holders other than an acquirer would be entitled to purchase, for six-months after the right becomes exercisable, a number of shares of the new preferred stock with a market value equal to twice the exercise price of the rights. The rights dividend distribution is payable July 9 to shareholders of record July 9. Reuter 29-JUN-1987 11:30:22.51 earn usa F f1418 reute r f BC-SHELDAHL-INC-<SHEL>-3 06-29 0056 NORTHFIELD, Minn., June 29 - Shr 12 cts vs one cent Net 546,000 vs 48,000 Revs 22.3 mln vs 16.0 mln Nine mths Shr 44 cts vs seven cts Net 1,857,000 vs 303,000 Revs 65.5 mln vs 46.0 mln NOTE: Per share figures adjusted for three-for-two stock split paid April 1987. Reuter 29-JUN-1987 11:31:40.04 acq usa F f1422 reute d f BC-FEDERAL-RESOURCES-<FD 06-29 0083 NEW YORK, June 29 - Federal Resources Corp said it has acquired the capital stock and related real estate assets of <New Generation Inc>, a regional consumer electronics specialty retailer. Terms of the acquisition were not disclosed. New Generation has annual sales volume of about 30 mln dlrs, Federal Resources said. Federal Resources said it will search for additional acquisitions including, but not limited to, specialty retailers. Reuter 29-JUN-1987 11:31:51.28 usa F f1423 reute d f BC-FIRST-UNION-CORP-<FUN 06-29 0093 CHARLOTTE, N.C., June 29 - First Union Corp said its second quarter (ending June 30) earnings will be down around 13 cts a share from 65 cts a share in the second quarter last year to an estimated 59 mln dlrs or 53 cts a share. The company said this will be the result of adding 25 mln dlrs to its reserve for Latin American loan exposures, bringing its reserve to 57 mln dlrs. It said it expects its return on equity and return on assets to be among the highest for major United States banks this year. Reuter 29-JUN-1987 11:34:08.62 acq usa F f1437 reute u f BC-CRAZY-EDDIE 06-29 0115 WASHINGTON, June 29 - Enetertainment Marketing Inc and its president Elias Zinn have demanded a list of Crazy Eddie Inc shareholders from the company and said they may pursue a merger of the Edison, N.J. electronics retailer. In a filing with the Securities and Exchange Commission, Zinn said the demand for the shareholder list was made on June 26 because he may desire to communicate with other Crazy Eddie shareholders "regarding the affairs" of the company. Zinn and his firm, which disclosed they hold a 5.1 pct stake in Crazy Eddie common stock, said they may acquire more shares through a negotiated merger or tender offer. Entertainment Marketing was informed on June 25 by Shearson Lehman Brothers Inc., acting on behalf of Crazy Eddie, that it would be provided with "certain information" about Crazy Eddie, it told the SEC. Entertainment Marketing, a Houston-based firm involved in electronics wholesaling and televised home shopping sales, proposed an eight dlr a share merger acquisition of Crazy Eddie on May 29, and modified the proposal on June 9 to include the possible participation of Crazy Eddie management. Entertainment Marketing told the SEC it expects to meet with Crazy Eddie representatives in the near future. Entertainment Marketing also disclosed that it retained Drexel Burnham Lambert Inc as its financial advisor and investment banker. In light of a June 17 announcement from Crazy Eddie that Chemical Bank would no longer fund a 52 mln dlr credit facility with the company, plus further declines in the price of its stock, Entertainment Marketing and Zinn said they are "continuing to evaluate their alternatives with respect to their investment" in Crazy Eddie stock. Depending on its evaluation of the company, including actions by Crazy Eddie's board and any possible third party bids for the company, Entertainment Marketing and its president said they may hold their present stake in the company, sell some of their shares, or purchase more shares on the open market, through private purchases or in connection with a merger or tender offer. According to the SEC filing, Entertainment Marketing and Zinn bought their current holdings of 1,560,000 Crazy Eddie common shares between May 20 and June 17 at 7.42 dlrs to 7.93 dlrs a share, or a total of about 11.9 mln dlrs. Reuter 29-JUN-1987 11:34:19.06 shipcrude kuwaitusairan C M f1438 reute d f BC-CHANCES-OF-DIRECT-U.S 06-29 0132 By Rory Channing, Reuters KUWAIT, June 29 - U.S. moves to increase its warships in and around the Mideast Gulf could trigger more attacks on unprotected merchant ships but run little risk of sparking a direct military clash with Iran, diplomats said. They said the American decision inevitably carries some risk of armed confrontation, but Iran -- despite its blunt rhetoric -- would want to avoid this as much as Washington. "As Iran knows very well, what America is bringing into the Gulf could do serious damage," said one western diplomat. Diplomats see the greatest potential danger in more attacks on "soft targets" such as merchant shipping not protected by American or other western navy vessels patrolling the Gulf. The risk of Iranian attack on U.S. Warships or Kuwaiti oil tankers carrying the U.S. Flag and under naval escort is rated by diplomats as low. However, "There is the threat that the Iranians, seeing these heavily protected U.S.-flag tankers, will go for softer targets," one diplomat said. Tehran Radio quoted Iran's top defence spokesman Ali Akbar Hashemi Rafsanjani as saying yesterday that Washington was "moving to the brink of an armed encounter with us." The U.S. is increasing its Gulf fleet from seven to 10 warships and sending the refurbished battleship Missouri to patrol just outside the Strait of Hormuz. The build-up ties in with U.S. plans to start escorting Kuwaiti oil tankers next month, which have been re-registered to fly the American flag to give them naval protection. Shipping serving Kuwait has come under repeated attack by Iran, angered at the emirate's war backing of Iraq. Concern in the region has mounted over the threat posed by Chinese-made Silkworm missiles, which the U.S. says Iran is preparing to deploy near the Strait of Hormuz. The Missouri, with its four-escort flotilla, is likely to make Iran think twice about using the missiles, diplomats said. A military source in the Gulf has said Iran also set up a launching site for the Silkworms on captured Iraqi soil in the Faw peninsula, within range of Kuwait. "But anything that went as far as a direct attack on Kuwaiti territory would be a very serious escalation" likely moving world opinion against Iran, remarked one. Some diplomats believe Iran could also consider carrying out reprisals against the United States outside the Gulf. Rafsanjani, who is also parliamentary leader, predicted last Friday "a river of blood" throughout the world in the event of any U.S. strike against Iran. Western diplomats said Iran, which Washington has accused of being behind state-sponsored terrorism, had no demonstrable capacity to carry out attacks in the U.S. itself. Diplomats saw few potential targets in Lebanon now that most Americans have left in the wake of kidnappings linked to pro-Iranian groups. But Europe and Asia were potential trouble-spots, and Kuwait was one of the most obvious targets. Any backlash was likely to take the form of sabotage or other action to make it difficult to blame Iran, they added. Reuter 29-JUN-1987 11:35:34.49 usachina F f1443 reute r f BC-CHRYSLER-<C>-REPORTED 06-29 0111 DETROIT, June 29 - Chrysler Corp is negotiating with the Chinese Government owned First Autoworks about a project in which the Dodge 600 mid-sized car could be added to the Chinese firm's lineup, the trade paper Automotive News said. It said Chrysler is discussing the supply of 2.2 liter four-cylinder engines as well as tooling for the 600, which has been on the U.S. market since 1982. Chrysler spokesmen were not available for comment today. But the trade paper quoted an unnamed spokesman as saying Chrysler is competing with French-based Citroen and an unnamed Japanese maker to supply First Autoworks. Reuter 29-JUN-1987 11:35:51.28 usa F f1445 reute d f BC-CONQUEST-EXPLORATION 06-29 0031 HOUSTON, June 29 - Conquest Exploration Co said the expiration date of its publicly traded warrants will not be extended after July 15. Reuter 29-JUN-1987 11:36:01.60 usa F f1446 reute d f BC-HATHAWAY-<HATH.O>-RES 06-29 0090 BROOMFIELD, COLO., July 29 - Hathaway Corp said it restructured its debt financing which provides 15 mln dlrs for expansion and operations of the company, twice the debt financing previously available to the company. As part of the restructuring, Hathaway said it obtained 10 mln dlrs of long-term financing from Household Commercial Financial Services Inc and Ford Motor Credit Co. An additional 5.0 mln dlrs of working capital financing was committed by Colorado National Bank of Denver, it said. Hathaway said the new financing will be used to repay about 7.0, mln dlrs in existing short-term debt, with the balance for expansion. It said 10-year senior secured notes were executed June 15 and are payable with interest at 12 pct a year on a quarterly basis. Reuter 29-JUN-1987 11:36:52.62 usa F f1451 reute d f BC-VIDEO-JUKEBOX-<JUKE.O 06-29 0072 MIAMI, June 29 - Video Jukebox Network Inc said it has extended through July two the exclusive period provided in its May 29 letter of intent the option to sell to a group of investors 3,500,000 shares of the four mln shares of the company's common stock owned by its founder and president Steven A. Peters. Video said it currently has 7,525,000 common shares outstanding. The purchasers are Louis Wolfson III, vice president of <Venture W Inc>, an investment firm; Mark Blank, president of <National Brands Inc>; J. Patrick Michaels, Jr., president and chief executive officer of <Communications Equity Associates Inc>; and CEA Investors Partnerships II, a company Michaels would form for the purchase, Video said. Video said it agreed to extend the period at the request of the prospective buyers in order to provide their respective counsels sufficient time to finalize the draft agreement which the parties have negotiated. The company previously said that the outright purchase was valued at three mln dlrs, or an option purchase price of 250,000 dlrs excersizable until May 28, 1988. The exercise price would be 3,750,000 dlrs plus the initial option purchase price of 250,000 dlrs, the company said. Video said if the option expires unexercised, Video will grant an additional six month option to the buyers enabling them to purchase two mln shares for 1,750,000 dlrs plus the initial option purchase price of 250,000 dlrs. Reuter 29-JUN-1987 11:39:52.48 interestmoney-fx RM V f1462 reute f f BC-FED-SETS-TWO-DA 06-29 0008 ****** 29-JUN-1987 11:42:43.55 acq usa F f1475 reute r f BC-CYCLOPS-<CYL>-MERGER 06-29 0071 PITTSBURGH, June 29 - Cyclops Corp said shareholders approved a previously announced merger of the company with a subsidiary of dixons Group PLC. It said Dixons held about 83 pct of Cyclops stock following a tender offer and other purchases earlier in the year. With the completion of the transaction, Dixons will proceed to pay 95 dlrs a share to the remaining Cyclops shareholders. Reuter 29-JUN-1987 11:43:17.18 usa F f1477 reute r f BC-LEECO-<LECO.O>-EXPAND 06-29 0093 SOUTHFIELD, Mich., June 29 - Leeco Diagnostics Inc said its sales team will be expanded due to the initial success of its Preview pregnancy test kit. The company said the sales team, which sells to test kit to physicians, is expected to rise to 150 from 100 in the next 45 days. It said test kits will be sold in U.S. drug stores later this year. The Preview test, which takes five minutes and can detect pregnancy within seven days of conception, had record sales in its first month on the market, the company said. Reuter 29-JUN-1987 11:44:32.84 zinc usa M f1481 reute u f BC-AMAX-ZINC-CO-RAISES-D 06-29 0057 GREENWICH, CONN, June 29 - Amax Zinc Co, a division of Amax Inc, said it is increasing the price of dyecast alloys No. Three and No. Five by three cents a lb, effective immediately. Dyecast alloy No. Three is now 52.5 cents a lb, while alloy No. Five is now 53.5 cents a lb, the company said. Reuter 29-JUN-1987 11:45:04.08 interestmoney-fx usa V RM f1484 reute b f BC-/-FED-SETS-TWO-DAY-SY 06-29 0061 NEW YORK, June 29 - The Federal Reserve entered the government securities market to arrange two-day repurchase agreements for system account, a spokesman for the New York Fed said. Federal funds were trading at 6-3/4 pct at the time of the direct injection of temporary reserves, in line with Friday's 6.72 pct average. Reuter 29-JUN-1987 11:46:29.03 usachina C M f1492 reute d f BC-CHRYSLER-SAID-IN-AUTO 06-29 0111 DETROIT, June 29 - Chrysler Corp is negotiating with the Chinese Government owned First Autoworks about a project in which the Dodge 600 mid-sized car could be added to the Chinese firm's lineup, the trade paper Automotive News said. It said Chrysler is discussing the supply of 2.2 liter four-cylinder engines as well as tooling for the 600, which has been on the U.S. market since 1982. Chrysler spokesmen were not available for comment today. But the trade paper quoted an unnamed spokesman as saying Chrysler is competing with French-based Citroen and an unnamed Japanese maker to supply First Autoworks. Reuter 29-JUN-1987 11:46:59.25 usa A f1495 reute r f BC-PHARMACONTROL-<PHAR.O 06-29 0100 ENGLEWOOD CLIFFS, N.J., June 29 - Pharmacontrol Corp said it has closed its public offering of 23,000 units. The company said each unit consists of 1,000 dlrs principal amount of subordinated convertible debentures due 2002, which convert at six dlrs a share into 167 shares of common stock. Also, each unit included 70 shares of common stock which were immediately detachable, the company said. Pharmacontrol added that it has also converted its seven mln dlr credit facility with its institutional lender into a 12 mln dlr credit facility. Reuter 29-JUN-1987 11:49:27.62 usa F f1505 reute r f BC-ASEA-GROUP-AWARDED-11 06-29 0060 NEW YORK, June 29 - Asea Group AB <ASEAY> said it has been awarded a 110 mln dlr contract from the Swedish State Power Board and the Finnish utility <Imitran Oma Oy>. The company said the contract is for a 500 megawatt 400 kv fenno skan high voltage DC transmission to be built between Sweden and Finland. The company also said three other Asea companies; Asea Transmission, Ludvika Sweden and Strondberg Vaasa in Finland, received a related order for converter equipment. Reuter 29-JUN-1987 11:55:55.10 acq usa F f1524 reute r f BC-VERNITRON-<VRN>-SETS 06-29 0091 DEER PARK, N.Y., June 29 - Vernitron Corp said it has set a new record date of July 10 for shareholders entitled to vote on the proposed merger of Vernitron with <SB Holding Corp>. The original record date was May 26. Vernitron said that it currently expects the special shareholder meeting concerning the merger will be held in August. Following its tender offer in November 1986, SB Holding holds 55.2 pct of Vernitron, a maker of electromechanical components and related products and services. Reuter 29-JUN-1987 11:56:11.58 usa A RM f1526 reute r f BC-CENTEL-CORP-<CNT>-SEL 06-29 0113 NEW YORK, June 29 - Centel Corp is raising 60 mln dlrs via an issue of debentures due 1997, said lead underwriter Smith Barney, Harris Upham and Co Inc. Smith Barney headed a syndicate that won the debentures in a competitive bidding. It bid the issue at 99.338 and set a 10 pct coupon and reoffering price of par to yield 146 basis points over Treasuries. The net interest charge was 10.07 pct. Non-callable for five years, the debt is rated A-2 by Moody's and A by S and P. Gross spread is 6.62 dlrs, selling concession is 4.50 dlrs and reallowance is 2.50 dlrs. United Bank of Switzerland and Dillon Reed co-managered the deal. Reuter 29-JUN-1987 11:56:25.67 acq usa F Y f1528 reute r f BC-ENERGAS-<EGAS.O>-TO-B 06-29 0063 DALLAS, June 29 - Energas Co said it has agreed in principle to purchase Western Kentucky Gas Co from Texas American Energy Corp for 61.5 mln dlrs in cash plus assumptrion of certain liabilities. Western Kentucky is a gas distribution company which serves about 143,000 customers in 108 towns and communities in Kentucky. Reuter 29-JUN-1987 11:56:29.57 usa F f1529 reute d f BC-FRANKLIN-PENNSYLVANIA 06-29 0041 SAN METEO, Calif., June 29 - The Franklin Group of Funds said <Franklin Pennsylvania Investors Equity Fund> will pay an initial semi-annual dividend of seven cts July 14 to holders of record July one. Reuter 29-JUN-1987 11:56:39.29 usacanadaukaustralia F f1530 reute r f BC-TNT-SETS-NEW-PACKAGE 06-29 0107 NEW YORK, June 29 - TNT Skypak, a unit of TNT Ltd of Australia, said it introduced a new worldwide express package delivery service, that will starts operation today. At a press conference, executive said the service, TNT Expressair, will delivery packages up to 220 lbs from any location in the U.S., anywhere in the world, and from overseas locations to the U.S. Initially, TNT Expressair will concentrate its marketing in the U.S., Canada, the United Kingdom, Europe and Australia. TNT is one of the world's largest transportation companies, with annual revenues of over US 4 billion dlrs. TNT officials declined to project expected annual revenues for the new service. They said final price lists are being prepared. As part of the new service, TNT will open another 20 to 25 offices in the U.S. by the end of the year, officlals said. It currently has 27 offices in the U.S. Reuter 29-JUN-1987 11:58:45.54 acq usa F f1532 reute r f BC-GIBRALTAR-<GFC>-TO-BU 06-29 0094 BEVERLY HILLS, Calif., June 29 - Gibraltar Financial Corp said its Gibraltar Savings unit has agreed in principle to buy <First Federal Savings and Loan of Ridgecrest> for about 12.1 mln dlrs cash. The company said the actual price will be determined at the close, based on net book value at May 31. It said First Federal is located in Kearn County northeast of Los Angeles and has assets of 130 mln dlrs. It said the transaction is subject to a definitive agreement, shareholder and regulatory approval. Reuter 29-JUN-1987 11:59:38.67 acq usa F f1536 reute d f BC-WINLEY-BUYS-LAND-FROM 06-29 0086 ENGLEWOOD, Colo., June 29 - Winley Home Builders Inc said it completed a land purchase agreement with M.D.C. Holdings Inc <MDC> for 1,090,000 dlrs in notes and preferred stock. The company said it bought 33 lots in Colorado from Richmond Homes Ltd, an M.D.C. unit, in return for 650,000 dlrs in promissory notes and 440,000 dlrs in preferred stock. The company said M.D.C. has an option to convert Winley preferred stock into 20 pct Winley common in a year. Reuter 29-JUN-1987 12:00:03.38 earn usa F f1537 reute d f BC-STAR-CLASSICS-INC-<SC 06-29 0031 NEW YORK, June 29 - Shr three cts vs two cts Net 97,224 vs 58,503 Rev 906,368 vs 714,747 Avg shrs 3,300,000 vs 3,948,719 Reuter 29-JUN-1987 12:00:45.10 west-germany RM f1540 reute b f BC-EIB-LAUNCHES-200-MLN 06-29 0099 FRANKFURT, June 29 - The European Investment Bank is raising 200 mln marks through an eight-year bullet eurobond carrying a 6-1/8 pct coupon and priced at 99-1/2 pct to yield 6.21 pct at issue, lead manager Westdeutsche Landesbank Girozentrale said. Payment date is July 16, the bond pays interest on that date annually, and matures on that date in 1995. Fees total 1-3/4 pct, with 5/8 for underwriting and management and 1-1/8 for selling. Denominations are 1,000 and 10,000 marks and the bond will be listed in Duesseldorf and Frankfurt. REUTER 29-JUN-1987 12:03:29.89 acq F f1562 reute b f BC-DIGIORGIO 06-29 0012 ****** 29-JUN-1987 12:05:59.08 usa F f1582 reute u f BC-APOLLO-<APCI.O>-OFFER 06-29 0056 BOSTON, June 29 - Apollo Computer Inc said it introduced a new family of computer workstations and improved the performance and cut prices on some of its existing workstations. In addition, the company announced new products that allow personal computers to communicate with workstations. Apollo said its new workstation family, the Domain Series 4000 Personal Super Workstations, includes the first color workstation priced under 19,000 dlrs that can process four million instructions per second. Apollo said the Domain Series 4000 also features a 14,000 dlr monochrome workstation and a 13,000 dlr workstation server, both of which can process four million instructions per second. Apollo said the new Domain Series 4000 models double the performance of its existing Domain Series 3000 workstations and provide performace equivalent to competing workstations at half the price. "We are clearly telling users that Apollo is committed to maintaining its price/performance leadership in the workstation marketplace," said Thomas A. Vanderslice, Apollo's chief executive officer. Apollo also said it will offer new color and monochrome models for the Domain Series 3000, its entry-level workstation family. It said it also cut some prices but did not specify. Reuter 29-JUN-1987 12:07:35.96 usa F f1598 reute d f BC-<FRANKLIN-OPTION-FUND 06-29 0046 SAN METEO, Calif., June 29 - Qtly dividend 23 cts vs 21.6 cts in prior qtr Payable July 14 Record July one Dividend includes short-term capital gain of 20 cts vs 16 cts short-term and 2.2 cts long-term gains in prior quarter Reuter 29-JUN-1987 12:07:41.26 usa F f1599 reute w f BC-DSC-COMMUNICATIONS<DI 06-29 0055 DALLAS, June 29 - DSC Communications Corp said it signed a supply agreement with United Telephone System Inc to deliver DSC Signal Transfer Points valued at about 3.0 mln dlrs. It said the agreement runs through 1990 with product deliveries expected to start later this year. Reuter 29-JUN-1987 12:08:59.65 earn usa F f1602 reute d f BC-CLEOPATRA-KOHLIQUE-IN 06-29 0028 ELMONT, N.Y., June 29 - year ended March 31 Shr three cts vs 11 cts Net 384,723 vs 800,137 Revs 5.1 mln vs 3.5 mln Reuter 29-JUN-1987 12:11:34.12 acq usa F C f1618 reute r f BC-INTERSTATE-BAKERIES-< 06-29 0054 KANSAS CITY, MO., June 29 - Interstate Bakeries Corp said its Royal American Foods subsidiary agreed to buy the assets of Landshire Food Products Inc, a New-Mexico-based producer of packaged Mexican food products. Terms of the proposed transaction were not disclosed. Reuter 29-JUN-1987 12:13:16.34 earn usa F f1629 reute r f BC-FEDERATED-GROUP-INC-< 06-29 0035 CITY OF COMMERCE, Calif., June 29 - Period ended May 31. Shr loss eight cts vs profit six cts Net loss 895,000 vs profit 662,000 Sales 91.1 mln vs 89.8 mln Reuter 29-JUN-1987 12:14:07.58 acq usa F f1631 reute u f BC-DIGIORGIO 06-29 0091 WASHINGTON, June 29 - A group of firms led by Gabelli Group Inc told government regulators it holds a 28.5 pct stake in Digiorgio Corp common stock, and said two partnerships making up part of the group may seek control of the company. In a filing with the Securities and Exchange Comission, the group of firms said it holds 2,430,100 shares of Digiorgio common stock. Of the total, 2,059,400 shares are held by GAMCO Investors Inc and Gabelli Funds Inc. for investment purposes, the group said. Gabelli-Rosenthal and Partners LP and G and R Partners, which hold the remaining 370,700 Digiorgio common shares, told the SEC their "purpose is to ultimately obtain control of Digiorgio contingent upon approval of Digiorgio," according to the SEC filing. As previously reported, Gabelli and Co Inc, acting as investment advisor to a group including Gabelli-Rosenthal, proposed on June 25 to acquire all Digiorgio common shares for a per share price of 20 dlrs in cash, a subordinated note with a face value of eight dlrs, 14 pct redeemable preferred stock, and one common share of the post-buyout company. The June 25 buyout proposal, which remains open until July 17, also provides that key members of Digiorgio management and some of its directors would be invited to remain with the firm and participate in the group acquiring the company. The proposal is also subject to a due diligence review, execution of a merger agreement, arrangement of financing and receipt of government approvals, all of which Gabelli and Co said could be completed within 60 days. Between April 13 and June 26, the entire group led by Gabelli Group Inc made net purchases of 403,600 Digiorgio common shares at 22.20 dlrs to 26.79 dlrs a share. Reuter 29-JUN-1987 12:15:35.16 usa F f1636 reute d f BC-HENLEY-GROUP-<HENG>-U 06-29 0058 HAMPTON, N.H., June 29 - Henley Group Inc unit, Wheelabrator Technologies Inc, said it won a 243 mln dlrs contract from <Mississippi Chemical Corp> unit Newsprint South Inc. The company said the contract is for the construction of a 224,000 ton-per-year newsprint production facility in Grenada. Reuter 29-JUN-1987 12:16:29.17 brazil RM F f1642 reute r f AM-BRAZIL-MOTOR 06-29 0093 SAO PAULO, June 29 - Brazil's motor industry, facing the worst crisis of its history, today sent thousands of workers on collective leave because of a sharp drop in demand. Company spokesmen said Autolatina, which last Friday laid off 4,000 workers, sent nearly 9,000 of its 56,500 employees in Brazil on collective leave until July 12. General Motors do Brasil said it would give 10 days' leave to part of its 22,000 workforce from Wednesday. Fiat is giving 2,000 workers a month's holiday from July 6. Jacy Mendonca, industrial relations director of Autolatina, a merger of Volkswagen and Ford in Brazil and Argentina, said last week this would be the worst year ever for Brazil's auto industry. He forecast that 1987 would be worse than 1981, when domestic sales dropped 40 pct to 580,000 units. "This year we'll be lucky if we can sell 550,000 units," he said. Since Friday there have been two positive developments for the industry. The government announced that it was scrapping a 15 pct surcharge on all new car sales. The surcharge, created in July last year, was originally set at 30 pct to help curb a car-buying boom and was in theory refundable. Brazilian car distributors, which since June 16 had halted all car purchases in protest against high government taxes, responded to the government move by resuming purchases. But industry spokesmen said taxes on vehicles were still high, 108 pct, and the sector still faced major problems. Reuter 29-JUN-1987 12:17:06.99 zambiauk RM f1644 reute r f BC-WESTERN-DONORS-STILL 06-29 0110 LUSAKA, June 29 - Finance Minister Gibson Chigaga said all of Zambia's traditional financial backers apart from Britain had pledged continued backing for the country's new go-it-alone economic program announced last month. Chigaga told Reuters in an interview it was not true that Western states had threatened to withold financial aid following Zambia's abandonement of a tough IMF-inspired program that included the auctioning of the local kwacha. "It is only Britain which has openly come out to say it would withhold funds intended for the auction system of foreign exchange," Chigaga said. "All the other countries have said their relationship with us cannot be affected by the abandonment of a system that only lived for 18 months, when they have been supporting us for over 20 years now," he said. Chigaga said that Britain was now considering its stand following representation by the Zambian government. Chigaga told Reuters that guidelines on the functioning of the new economic prgram would be released soon. REUTER 29-JUN-1987 12:18:43.57 canada E F f1651 reute u f BC-STRIKES-HIT-CONSOLIDA 06-29 0079 MONTREAL, June 29 - Consolidated-Bathurst Inc said three of its Quebec newsprint mills have been shut down by strikes which began over the weekend. The company said about 2,000 workers, members of the Canadian Paperworkers Union and another, independent union, walked out at its Wayagamack mill at Trois-Rivieres, its Laurentide mill at Grand-Mere and its Belgo mill at Shawinigan. Their contract expired April 30. The Laurentide mill has an annual capacity of 200,000 tonnes, the Belgo mill 350,000 tonnes, and the Wayagamack mill 70,000 tonnes. The strikes are the first at Consolidated-Bathurst mills since an industry-wide walkout in 1976, company spokeswoman Denise Dallaire said. "As far as management is concerned, negotiations are going on right now," Dallaire said, adding she could not elaborate. Union officials were not immediately available for comment. Company officials had said at the annual meeting in April they expected no labor problems this year. reuter 29-JUN-1987 12:18:57.31 usa A RM f1653 reute r f BC-IBM-CREDIT-<IBM>-FILE 06-29 0059 NEW YORK, June 29 - IBM Credit Corp said it filed with the Securities and Exchange Commission a registration statement covering a 500 mln dlr issue of medium-term notes. Proceeds will be used for general corporate purposes. The company named First Boston and Salomon Brothers as agents for the offering. Reuter 29-JUN-1987 12:19:18.67 acq usa F f1655 reute d f BC-<UNICOA>-TO-MERGE-INT 06-29 0083 CHICAGO, June 29 - Unicoa Corp said it agreed to a merger with its wholly-owned subsidiary, United Insurance Co of America. Under the agreement, each outstanding share of Unicoa common stock will be converted into one share of United common stock. The agreement is subject to shareholder and regulatory approval. Teledyne Inc <TDY> owns about 98.4 pct of Unicoa's outstanding shares. A shareholder meeting is expected to be held in August. Reuter 29-JUN-1987 12:19:36.62 usa F f1656 reute r f BC-EPITOPE-<EPTO.O>-SETS 06-29 0088 BEAVERTON, Ore., June 29 - Epitope Inc said it has developed a set of independent control reagents for laboratories performing AIDS testing. The control set consists of human blood serum free of AIDS antibodies, serum with early signs of antibody formation and serum with strong antibody components. The company said the control sets are designed for use with all Food and Drug Administration-licensed AIDS screening and supplemental test and will be marketed worldwide. Reuter 29-JUN-1987 12:21:22.94 graincornoilseedsoybean usa C G f1666 reute b f BC-/RAINS-HELP-U.S.-WEST 06-29 0136 CHICAGO, June 29 - Weekend rain over the Western Corn Belt brought further relief to crop areas that had been dry earlier this month, and developing weather patterns will bring welcome moisture to central and eastern belt locations this week, according to Dale Mohler, senior meteorologist for Accu-Weather Inc. "There is going to be more rain for the next two, three days," he said. "We're in a fairly wet pattern with normal to above normal moisture this week." Mohler said rainfall averaged 1/2 inch across southern Minnesota, 3/4 inch over southwest Iowa, one inch in eastern Nebraska and 1-1/2 inches in south-central Nebraska. Illinois fields saw virtually no rain over the weekend but were receiving scattered thundershower activity today, he said. Rain patterns will move across Indiana to Ohio with thudershower activity yielding to more general rains, he said. "Tomorrow, that eastern area will get 1/4 to one inch, a pretty good rain," Mohler said. Rain was heavier than expected over the weekend, sparking an early selloff in soybean futures at the Chicago Board of Trade. Prices were off 14 to 20-1/2 cents with November off 19-1/2 cents at 5.43-1/2 dlrs. Mohler said the cold front now over the eastern belt is expected to move over the central Midwest, then move north later in the week. That could bring new rain patterns across the Corn Belt and assure good crop conditions as early-developed corn moves into the crucial pollination stage in early July, he said. Reuter 29-JUN-1987 12:21:44.49 usa F f1670 reute d f BC-U.S.-CAR-OUTPUT-SEEN 06-29 0092 DETROIT, June 29 - U.S. car production is scheduled to drop by 10.4 pct to about 1.47 mln in the third quarter from last year's 1.63 mln as domestic automakers react to a drop in sales from last year's record levels, trade paper Automotive News said. Automotive News said General Motors Corp <GM> has slashed its planned car production by 12.6 pct from last year's third quarter totals while Ford Motor Co <F> is scheduling its plants to build 5.4 pct fewer cars and Chrysler Corp <C> will be off 18.4 pct. But the paper quoted analysts as saying the production should be cut by at least 200,000 more units to avoid excessive inventory build-up in view of a relatively soft market for new cars. Through June 20, sales of new domestic-built cars are off 11.9 pct from last year's levels. Only Ford among the Detroit Big Three is enjoying a sales gain. GM and Ford may be working to stockpile cars despite the market conditions because of the prospect of a strike in September by the United Automobile Workers union, analysts said. Reuter 29-JUN-1987 12:22:33.62 earn usa F f1676 reute r f BC-HOVNANIAN-ENTERPRISES 06-29 0039 NEW YORK, June 29 - May 31 end Shr 27 cts vs 14 cts Net 5,664,000 vs 2,812,000 Revs 68.2 mln vs 54.7 mln Avg shrs 21,254,054 vs 20,167,714 NOTE: First quarter report Reuter 29-JUN-1987 12:23:36.77 usa F f1680 reute r f BC-APOLLO-<APCI.O>-CUTS 06-29 0101 BOSTON, June 29 - Apollo Computer Inc said the price cuts announced earlier today on its Domain Series 3000 computer workstations average 35 pct to 50 pct. An Apollo spokesman said the cuts bring prices to under 5,000 dlrs for some Series 3000 models. In addition to reducing prices, the company said it added new monochrome and color models to the Series 3000 line that improve its performance and graphics capabilities. The company made the price cuts along with the introduction of a more powerful family of workstations, the Domain Series 4000. Industry analysts had expected Apollo to reprice the Series 3000 in response to aggressive price cuts made two weeks ago by Digital Equipment Corp <DEC> on its competing workstations. But the Apollo spokesman said the reductions had been planned for some time. "We haven't just cut prices," he added, noting that the company had improved the Series 3000 models. Analysts have said they also expect Sun Microsystems Inc <SUNW.O>, Apollo's biggest rival in the workstation market, to cut prices and introduce new models. Sun has scheduled a new conference on July eight. Reuter 29-JUN-1987 12:24:27.60 usa F f1682 reute r f BC-<CORRECTED>---GENERAL 06-29 0035 NEW YORK, June 29 - Qtly div 6.25 cts vs 6.25 cts prior Pay Oct 2 Record Sept 1 (Corrects amount of qtly div in item that ran on Friday Jan 26) Reuter 29-JUN-1987 12:26:10.75 acq F f1691 reute b f BC-FED-APPROVES-CI 06-29 0012 ****** 29-JUN-1987 12:35:07.78 acq usa F f1724 reute d f BC-HEALTH-PROPERTIES-<HR 06-29 0086 CAMBRIDGE, Mass. June 29 - Health and Rehabilitation Properties Trust said it reached an understanding to purchase three nursing facilities in Mass. and Conn. for 29 mln dlrs from Greenery Rehabilitation Group Inc <GRGI.O>. The buildings will be leased back to Greenery for an initial term of seven years, subject to renewal options for an additional 23 years, Health and Rehabilitation Properties said. The transaction is expected to close on or before August 31. Reuter 29-JUN-1987 12:35:35.71 usa C M f1726 reute u f BC-U.S.-CAR-OUTPUT-SEEN 06-29 0174 DETROIT, June 29 - U.S. car production is scheduled to drop by 10.4 pct to about 1.47 mln in the third quarter from last year's 1.63 mln as domestic automakers react to a drop in sales from last year's record levels, a trade paper said. Automotive News said General Motors Corp has slashed its planned car output by 12.6 pct from last year's third quarter totals, while Ford Motor Co is scheduling its plants to build 5.4 pct fewer cars and Chrysler Corp will be off 18.4 pct. However, the paper quoted analysts as saying production should be cut by at least 200,000 more units to avoid excessive inventory build-up amid weak demand for new cars. Analysts said GM and Ford may be working to stockpile cars despite the market conditions because of the prospect of a strike in September by the United Automobile Workers union. Through June 20, sales of new domestic-built cars are off 11.9 pct from last year's levels. Only Ford among the Detroit Big Three is enjoying a sales gain. Reuter 29-JUN-1987 12:36:41.74 usa F f1732 reute r f BC-EPA-DENIES-WHEELING-P 06-29 0111 PHILADELPHIA, June 29 - The U.S. Environmental Protection Agency said it denied a request by Wheeling-Pittsburgh Steel Corp that it be allowed to continue to operate the Follansbee, W. Va., sinter plant while court-ordered pollution control equipment is installed. The EPA said that since the original consent decree with the company was signed in 1979, the company had had numerous opportunities to reduce harmful emmissions from the plant. The agency said that only after the company failed to comply by the last available extension of its compliance deadline did the agency ask the court to close the plant. Reuter 29-JUN-1987 12:37:57.58 F f1737 reute b f BC-BANK-OF-NEW-YOR 06-29 0012 ****** 29-JUN-1987 12:38:01.44 acq usa F f1738 reute u f BC-BSN-<BSN>-BUYS-STAKE 06-29 0044 DALLAS, June 29 - BSN Corp said it holds less than five pct of MacGregor Sporting Goods. The company said the stock was acquired through recent open market purchases and the stake does not require specific disclosure. Reuter 29-JUN-1987 12:38:32.83 acq usa F f1742 reute r f BC-VERNITRON-<VRN>-SETS 06-29 0087 DEER PARK, N.Y., June 29 - Vernitron Corp said it has set a new record date for shareholders entitled to vote on the proposed merger of Vernitron Corp with SB Holding Corp for July 10. Vernitron, which manufactures electromechanical components and related products and services, said it expects that a special meeting of shareholders will be held in August. Vernitron said that SB Holding holds 55.2 pct in Vernitron, resulting from a tender offer in November 1986. Reuter 29-JUN-1987 12:39:31.90 usa F f1746 reute u f BC-SAVINGS-INSTITUTION-T 06-29 0069 NEW YORK, June 29 - The U.S. League of Savings Institutions said it has launched a program to bolster the liquidity of some savings and loan institutions and reduce their dependency on high interest rate deposits. A spokesman for the league said 48 institutions have committed 340 mln dlrs to the program and estimated that the program would begin within a week. Reuter 29-JUN-1987 12:40:29.42 acq usa RM F A f1750 reute u f BC-FED-ALLOWS-CITICORP-< 06-29 0078 WASHINGTON, June 29 - The Federal Reserve Board said it approved Citicorp's application to purchase through its subsidiary, Citicorp Savings of Oakland, Calif., some assets and assume some liabilities of Sears Savings Bank of Glendale, Calif. Citicorp Savings proposed to assume two billion dlrs in deposits and other liabilities and to purchase 1.9 billion dlrs in assets of 50 branch offices of Sears Savings. The proposal involved less than one third of the assets and liabilities of Sears Savings, owned by Sears, Roebuck and Co <S>. The Fed said that it generally has determined there were potentially adverse effects of allowing affiliations of banks and savings and loan associations, although it has allowed bank holding companies to acquire some failing thrifts. It said Citicorp's proposal "properly may be viewed as the permissible acquisition of certain assets and liabilities of S and L branches rather than the acquisition of an S and L." Citicorp Savings, the successor to the failed Fidelity Savings and Loan Association, has assets of 4.9 billion dlrs and operates 86 branches in California, mainly in the north. Sears Savings has 6.6 billion in assets and 91 branches predominantly in southern California. The application, which was approved unanimously, will not eliminate Sears Savings as a competitor, the Fed said. Reuter 29-JUN-1987 12:40:47.96 usa F f1752 reute h f BC-LORAL-CORP-<LOR>-AWAR 06-29 0081 LITCHFIELD PARK, Ariz., June 29 - Loral Corp said its Loral Defense Systems won a 29.4-mln-dlr contract with the U.S. Air Force to build 17 advanced transportation and handling sytems. The systems, the company said, will help extend the life and effectiveness of the Minuteman Intercontinental Ballistic Missile. The systems are scheduled for delivery from August 1988 to May 1989. They will service about 1,000 Minuteman missiles. Reuter 29-JUN-1987 12:41:02.47 usa F f1754 reute r f BC-NATIONAL-PATENT-<NPD> 06-29 0103 NEW YORK, June 29, - National Patent Development Corp and Bar-Ilan University of Israel said that their joint venture corporation, Scientific Testing Inc, will begin a clinical trial in the U.S. of its immuno-augmenting compound, AS101, for the treatment of Acquired Immune Deficiency Syndrome (AIDS). The study will be conducted at the Institute of Immunological Disorders (MD Anderson Hospital, Houston, Tex) under the direction of Dr Peter Mensell, pursuant to an investigational new drug application filed with the Food and Drug Administration, the company said. The study, expected to begin in four to six weeks, is designed to test the effects of AS101 on about 30 AIDS patients, National Patent said. It added that AS101, a proprietary synthetic compound invented by Bar-Ilan University doctors, has shown immuno-augmenting, anti-viral and anti-tumor activity in preclinical animal testing, and immuno-augmenting activity in a limited number of AIDS patients in phase one foreign clinical tests. Reuter 29-JUN-1987 12:41:24.31 acq usa F f1757 reute u f BC-ICN-<ICN>-BUYS-STAKE 06-29 0106 COSTA MESA, Calif., June 29 - ICN Pharmaceuticals Inc said it purchased the remaining 225,000 shares of Viratek Inc <VIRA.O> owned by Eastman Kodak Co owned as part of a previously announced program. The company said it paid Kodak 10.50 dlrs a share or 2.4 mln dlrs. As previously announced, ICN also said it authorized the additional purchase of up to 1.5 mln shares of Viratek common. To date, ICN said it bought a total of about 1.2 mln shares of Viratek, including the shares purchased from Kodak. The company said it now owns 56 pct of Viratek as a result of these transactions. Reuter 29-JUN-1987 12:41:42.18 mexicousa RM f1759 reute r f BC-MEXICO-GETS-205-MLN-D 06-29 0110 WASHINGTON, June 29 - The World Bank said it approved two loans to Mexico totalling 205 mln dlrs to provide financial assistance to industrial companies and finance a project dealing with agricultural extension services. Mexico's Nacional Financiera (NF), the recipient of both loans, will receive 185 mln dlrs to be used to provide long-term credit and equity funds to small and medium-sized industrial enterprises, the bank said. It said a 20 mln dlr loan is being made to help finance a project designed to test strategies to improve the quality and cost effectiveness of agricultural extension services. The industrial enterprise project, estimated to cost 350.3 mln dlrs, aims to support companies threatened by high inflation and adversely affected by increased competition brought about by bank-supported trade liberalization measures. The bank said the 73.8 mln dlr extension services project will examine strategies in 20 of Mexico's 192 rural development districts and finance training for personnel and farmers, office construction and the purchasing of equipment. Both loans are for 15 years, including three years of grace, with a variable interest rate, currently 7.92 per cent, which is linked to the bank's cost of borrowing funds. Reuter 29-JUN-1987 12:42:43.19 usa F f1765 reute d f BC-INTEL-<INCT.O>-SETS-P 06-29 0099 SAN JOSE, Calif, June 29 - Intel Corp said it has signed a letter of intent with privately-held Silicon Compiler Systems Corp under which Intel will become a value-added silicon vendor for integrated circuits designed with Silicon Compiler's GENESIL silicon compilation system. Under the proposed pact, Intel would provide initial silicon foundry services for GENESIL-based designs. GENESIL users would be able to compile their application-specific designs using Intel's 1.5-micron complementary metal-oxide semiconductor process. Reuter 29-JUN-1987 12:42:58.81 usaturkey RM f1767 reute r f BC-WORLD-BANK-LOANS-TURK 06-29 0073 WASHINGTON, June 29 - The World Bank said it has loaned Turkey 325 mln dlrs to help support an energy sector reform program. The loan-supported program hopes to reduce the extensive public sector involvement in the country's energy production and supply, the bank said. The loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.92 pct, the bank said. Reuter 29-JUN-1987 12:45:41.68 usaegypt F f1774 reute h f AM-MIDEAST-TANK 06-29 0109 WASHINGTON, June 29 - The Reagan Administration is discussing a deal with Cairo under which Egypt would build the U.S. M-1A1 battle tank, a high-speed weapon packed with laser and other technology, Pentagon officials said. But they denied a Washington Post report that the Administration has already approved a production license, which would entail transfer of sensitive technology to Egypt. "We have been talking with Egyptian officials about also producing the tank, but there is a long way to go before any decision is made," one Pentagon official, who asked not to be identified, told Reuters. Reuter 29-JUN-1987 12:46:17.26 earn usa F f1777 reute u f BC-RITE-AID-CORP-<RAD>-1 06-29 0046 HARRISBURGH, Pa., June 29 - Oper shr 50 cts vs 40 cts Oper net 20.8 mln vs 16.4 mln Revs 531.7 mln vs 418.7 mln NOTE: 1987 1st quarter net excludes a gain of 47.1 mln dlrs or 1.14 dlrs a share for discontinued operations. Reuter 29-JUN-1987 12:46:33.14 usa F f1778 reute r f BC-TELEQUEST-<TELQ.O>-CH 06-29 0048 SAN DIEGO, Calif., June 219 - Telequest Inc said Henry Marcheschi, its chairman and president, resigned for health reasons. Executive vice president Robert Lee was elected president and chief executive to succeed Marcheschi, the company said. Reuter 29-JUN-1987 12:46:52.82 acq usa F f1780 reute r f BC-MAXTOR-CORP-<MXTR.O> 06-29 0100 SAN JOSE, Calif., June 29 - Maxtor Corp said it bought privately-held Storage Dimensions Inc for an undisclosed sum. The company said Storage Dimensions incorporates Maxtor's high-capacity 5-1/4-inch Winchester and optical disk drives into a family of data storage subsystems for IBM PCs, XTs, ATs and compatibles. Storage Dimensions is the creator or SpeedStor software, a utility program that integrates high-capacity disk drives into PCs. Maxtor said the purchase reflects its desire to compete in the high-capacity segment of the PC market. Reuter 29-JUN-1987 12:47:23.87 earn usa F f1783 reute r f BC-SUPER-RITE-FOODS-INC 06-29 0027 HARRISBURGH, Pa., June 29 - Shr 19 cts vs seven cts Net 936,000 vs 351,000 Revs 153.3 mln vs 145 mln Reuter 29-JUN-1987 12:48:53.90 uruguay RM f1788 reute r f BC-LAST-PRIVATE-URUGUAYA 06-29 0107 MONTEVIDEO, June 29 - The board of directors of the last entirely private Uruguayan bank, La Caja Obrera, has approved its merger with a state-owned bank due to a severe financial crisis, a bank statement said. It said the Caja Obrera would merge with the Banco Pan de Azucar. The move was decided by the board of the Banco de la Republica, the state bank that since 1985 has had control the Banco Pan de Azucar. La Caja Obrera said the move aimed "at assuring its normal and stable operation, with a full guarantee for the people holding deposits as well as clients and employees." La Caja Obrera was the last entirely private Uruguayan bank. The Banco Pan de Azucar after being taken over by the Banco de la Republic in 1985 carried out a similar merger operation with the Banco de Italia. Reuter 29-JUN-1987 12:49:44.79 usa F f1793 reute r f BC-BAXTER-<BAX>-AND-GE-< 06-29 0080 DEERFIELD, Ill., June 29 - Baxter Travenol Laboratories Inc, General Electric Co unit GE Information Services and <Premier Hospital Alliance> said they developed a computer purchasing system for the health care industry. They said the system, known as ASAP Express, removes the need to have a different computer system for each vendor and will streamline hospital purchasing systems by reducing paperwork and simplifying billing. The system combines Baxter's ASAP (Analytic Systems Automated Purchasing) clearinghouse system and the GE EDI (electronic data interchange) Express system. GE Information Services operates a large commercially available teleprocessing network. Illinois based Premier Hospital Alliance is a voluntary group of 37 hospitals in 30 U.S. cities. Baxter Travenol said that by the end of 1987 it expects more than 100 hospitals to be part of the ASAP Express system, with a majority of the 5,600 current ASAP users participating in the ASAP Express system in the next five years. Reuter 29-JUN-1987 12:51:03.33 acq F E f1797 reute b f BC-SEC-CHARGES-CAM 06-29 0014 ****** 29-JUN-1987 12:54:19.01 usa F f1803 reute r f BC-GM'S-<GM>-OPEL-UNIT-H 06-29 0108 DETROIT, June 29 - General Motors Corp's German subsidiary Adam Opel AG had a first half profit after three years of losses, the trade paper Automotive News said. The paper quoted Opel chairman Horst Herke as saying the unit will earn at least 100 mln marks in 1987 after losing 141.5 mln marks in 1986. "In the first six months of this year, we have clearly had black numbers," Herke said. "As far as we can see, we will conclude the full year with a profit, he said. The paper also said Opel is likely sell its Senator and Omega models in the U.S. if it goes ahead with an export plan. Reuter 29-JUN-1987 12:55:38.48 usa amex F f1806 reute u f BC-PRE-PAID-LEGAL-<PPD> 06-29 0071 ADA, Okla, June 29 - Pre-Paid Legal Services Inc said its management knows of no developments to account for unusually heavy trading in the company's stock. The company said it was responding to inquiries regarding recent activity of its common on the American Stock Exchange. In early afternoon trading, the stock was down 1-7/8 to 5-1/8 on a turnover of 160,400 shares. Reuter 29-JUN-1987 12:56:00.83 acq usa F f1807 reute u f BC-CARDIS 06-29 0103 WASHINGTON, June 29 - A group of companies controlled by Brookehill Partners Inc told government authorities it may support a buyout of Cardis Corp as a way to maximize the value of the company's stock. In a filing with the Securities and Exchange Commission, the group disclosed that it currently holds a 5.5 pct stake in Cardis common stock, and said it "would likely support" an acquisition of the company as a whole or in parts by another party, terming such a move "the most likely means for the company's shareholders to maximize the value of their investment." Although the group characterized its Cardis stock holdings as principally for investment, it said it intends to contact third parties who might be interested in an acquisition of Cardis, a Los Angeles-based auto parts distributor. The group added its has already had "some contacts" with others concerning the company, but said no understandings have been reached. "The (Cardis) common shares continue to offer opportunity for price appreciation on the basis of the company's asset value and earnings momentum," the Brookehill group told the SEC. The group, which currently holds 318,900 Cardis common shares, consists of New York-based Brookehill Partners and its two subsidiaries, Brookehill Equities Inc, a brokerage, and Moore, Grossman and deRose Inc, an investment advisor. Walter Grossmman, S. Edward Moore and Robert deRose, all of New York, each own one-third interests in Brookehill Partners. Since April 27, members of the Brookehill group made net purchases of 6,000 Cardis common shares at approximately 4 dlrs a share. The group told the SEC it may continue to purchase additional Cardis stock, but also reserved the right to sell its shares in the company. Reuter 29-JUN-1987 12:57:12.00 usa F RM A f1809 reute u f BC-BANK-OF-NEW-YORK-<BK> 06-29 0105 NEW YORK, June 29 - Bank of New York Co Inc said it expects a second quarter loss of 35 mln dlrs. The company said this is partly due to an addition of 135 mln dlrs to its loan loss allowance. The 135 mln dlr addition to its loan loss allowance, which is expected to be 400 mln dlrs on June 30, is in recognition of recent international debt developments. It said its loss projection of 35 mln dlrs for the second quarter, ending June 30, takes into account the 49 mln dlr gain from the sale of RMJ Holdings and compares with last year's second quarter income of 37.8 mln dlrs. The first six months should show income of around 12 mln dlrs, the bank said, with income set to exceed 100 mln dlrs for the full year. Last year's income reached 155 mln dlrs. Reuter 29-JUN-1987 12:57:24.95 usa A RM f1810 reute u f BC-MOODY'S-MAY-DOWNGRADE 06-29 0112 NEW YORK, June 29 - Moody's Investors Service Inc said it may downgrade 1.3 billion dlrs of debt of Public Service Company of New Hampshire. Under review are B-1 first mortgage bonds, B-2 refunding mortgage bonds, B-3 third mortgage and secured pollution control revenue bonds, Caa debentures and preferred stock. Moody's cited an uncertain ability to meet fixed-income obligations due to the Nuclear Regulatory Commission's refusal to grant a low-power operating license because of inadequate evacuation plans. The firm depends on credit markets to fund obligations, due to a negative internal cash flow, it said. Reuter 29-JUN-1987 12:57:43.79 usamexico C f1813 reute d f BC-MEXICO-GETS-205-MLN-D 06-29 0110 WASHINGTON, June 29 - The World Bank said it approved two loans to Mexico totalling 205 mln dlrs to provide financial assistance to industrial companies and finance a project dealing with agricultural extension services. Mexico's Nacional Financiera (NF), the recipient of both loans, will receive 185 mln dlrs to be used to provide long-term credit and equity funds to small and medium-sized industrial enterprises, the bank said. It said a 20 mln dlr loan is being made to help finance a project designed to test strategies to improve the quality and cost effectiveness of agricultural extension services. Reuter 29-JUN-1987 13:00:25.40 RM f1822 reute b f BC-BANK-OF-NEW-YOR 06-29 0012 ****** 29-JUN-1987 13:01:05.13 shipcrude usairan reagan Y f1824 reute r f AM-GULF-CONGRESS 06-29 0102 WASHINGTON, June 29 - U.S. House Speaker Jim Wright said he would question President Reagan tomorrow about his plan to protect Kuwaiti oil tankers with U.S. warships from attacks by Iran in the Gulf. House and Senate Democrats, who control Congress, have been critical of Reagan's plan but have not decided how or if they should try to pass legislation to prohibit it. Wright, a Texas Democrat, told reporters the Administration had gone ahead with plans to reflag the Kuwaiti tankers as U.S. ships without asking Congressional leaders for their advice. Reuter 29-JUN-1987 13:04:11.71 usa F f1840 reute r f BC-GENRAD-<GEN>-INTRODUC 06-29 0081 CONCORD, Mass., June 29 - GenRad Inc said it has introduced the HITEST test generation system. The company said HITEST takes a modular approach to test generation, using a set of interactive software tools that automate many parts of the test generation process. HITEST runs on Digital Equipment Corp <DEC> VAX and MicroVax computers and is priced at 64,000 dlrs for a software license, GenRad said. It added that delivery is immediate. Reuter 29-JUN-1987 13:05:03.27 acq usa F f1846 reute u f BC-CAREMARK-<CMRK.O>-TO 06-29 0092 NEWPORT BEACH, Calif., June 29 - Caremark Inc and Baxter Travenol Laboratories Inc jointly announced that Caremark shareholders will vote on July 31 to approve the previously announced merger with Baxter. The companies said Caremark shareholders of record as of June 26 will be entitled to vote at the meeting to be held in Newport Beach, Calif, at 1000 PDT. On May 11, Baxter and Carmark announced a definitive agreement for Baxter to acquire Carmark in a stock transaction valued at 528 mln dlrs. Reuter 29-JUN-1987 13:05:36.04 italyalgeria RM f1848 reute r f BC-ITALIAN-BANKS-PROVIDE 06-29 0106 MILAN, June 29 - State merchant bank Mediobanca Spa <MDBI.MI> said an Italian banking consortium has arranged 100 mln dlrs in financing for Banque Exterieure d'Algerie. Mediobanca said in a statement that the financing was part of an accord reached last March between Italy and Algeria which agreed 300 mln dlrs of financing for Italian exports to Algeria. Mediobanca said 12 Italian banks were participating in the consortium, but gave no further details about the financing. Among the banks are Banca Nazionale del Lavoro (BANI.MI>, Banco di Sicilia and Efibanca Spa. REUTER 29-JUN-1987 13:06:47.50 acq usa F E f1852 reute u f BC-SEC-SAYS-CAMPEAU-UNIT 06-29 0104 WASHINGTON, June 29 - The Securities and Exchange Commission charged Allied Stores Corp with failing to promptly disclose key steps it was taking last September to thwart a takeover attempt by Campeau Corp. In an administrative complaint, the SEC said Allied and its legal adviser failed to promptly inform shareholders and the agency that it had begun talks with Youngstown, Ohio, shopping center developer Edward DeBartolo in response to Campeau's takeover offer. Campeau acquired Allied for an estimated 4.2 billion dlrs on Jan 1, following a battle with DeBartolo. On Sept 25, a day after Allied disclosed that its board had urged rejection of Campeau's Sept 12 tender offer for 58 dlrs a share, Allied began negotiating the sale of six shopping centers to DeBartolo, the SEC said. Allied legal advisor and director George Kern, who heads the merger and acquisitions group at the New York law firm of Sullivan and Cromwell, decided against amending Allied's SEC filing to disclose the talks even though they had resulted in sales price of 405 mln dlrs for the shopping centers, it said. Securities law requires takeover target companies to promptly disclose such things as the sale of major assets. The day after Campeau increased its tender offer to 80 pct of Allied's stock from 55 pct and raised its bid to 66 dlrs a share from 58 dlrs on Sept 29, Allied and a partnership headed by DeBartolo began negotiating a takeover deal aimed at thwarting Campeau, the SEC said. Kern again decided against disclosing the talks in an amended SEC filing, the agency charged. Allied's first disclosure of the DeBartolo takeover was made on Oct 8, even though its board approved the merger on Oct 3 and the merger agreement was executed on Oct 7, the complaint said. DeBartolo and Campeau later engaged in a bitter battle for control of Allied, with Campeau winning out later in October when it bought a block of 25.8 mln shares of Allied stock, or 48 pct of the total, in a controversial move made only minutes after it dropped its hostile tender offer. The acquisition of the additional 48 pct, which a federal judge allowed to be completed, gave Campeau a majority stake in Allied. Campeau bought the rest at 69 dlrs a share. The SEC said it had planned to file a court brief joining with Allied in charging that Campeau had engaged in an illegal tender offer. But the SEC brief was never filed since the case was dropped following an agreement between Campeau and DeBartolo. In the administrative proceeding against Allied and Kern, the SEC is asking for an administrative order that they comply with reporting provisions of securities laws in the future. Although Allied is no longer publicly traded since it became a subsidiary of Campeau, it still files annual and quarterly reports to the SEC because it has outstanding debt. Reuter 29-JUN-1987 13:09:19.45 earn usa F f1860 reute d f BC-GREAT-COUNTRY-BANK-<G 06-29 0080 ANSONIA, Conn., June 29 - Shr 31 cts vs n/a Net 671,000 dlrs vs 1,256,000 dlrs Year Shr 1.85 dlrs vs n/a Net four mln dlrs vs 2.8 mln dlrs Assets 426.4 mln dlrs vs 334.1 mln dlrs Deposits 323.1 mln dlrs vs 277.2 mln dlrs Loans 335.9 mln dlrs vs 254.9 mln dlrs Note:the company does not give 1986 per share earnings as it converted from a mutual savings bank to a stock savings bank in January 1986 Reuter 29-JUN-1987 13:09:28.15 acq usa F f1861 reute u f BC-ALLIED-SIGNAL-<ALD>-C 06-29 0092 MORRIS TOWNSHIP, N.J., June 29 - Allied-Signal Inc said it completed the sale seven businesses in its electronics and instrumentation sector for 1.8 billion dlrs in cash and in debt assumed by the purchasers. The company said last December its would sell the units by mid 1987. It did not identify the buyers. The company said the proceeds will be used to reduce debt, continue the company's share buyback program, and increase strategic investments in its core businesses and other corporate purposes. It said the units sold were Ampex Corp, Amphenol Prodcuts, Linotype Group, Neptune International, MPB Corp, Revere Corp and Sigma Instruments Inc. Reuter 29-JUN-1987 13:10:12.85 acq usa F f1864 reute d f BC-CYCARE-<CYCR.O>-BUYS 06-29 0056 PHOENIX, Ariz., June 29 - Cycare Systems Inc, an information processing systems company, said it purchased the assets of Control Data Corp's MedTec unit for undisclosed terms. MedTec is a provider of patient accounting and scheduling systems for large scale group medical practices. Reuter 29-JUN-1987 13:13:17.88 goldzincleadsilver usa F f1872 reute r f BC-U.S.-MINERALS-<USMX.O 06-29 0111 DENVER, June 29 - U.S. Minerals Exploration Co said it and Pegasus Gold Inc <PGUL.O> of Spokane, Wash, officially commissioned a new gold, zinc and lead producing mine. U.S. Minerals said the new Montana Tunnels Mine near Helena, Mont, is expected to reach full production in August 1987. U.S. Minerals said the mine is designed to operate at an average of 12,500 tons or ore per day and is projected to produce 95,000 ounces of gold in 1988, plus significant quantities of silver, lead and zinc. U.S. Minerals said it has a 50 pct net profit royalty interest in the mine after payback of development costs. Reuter 29-JUN-1987 13:14:50.14 usa F f1875 reute r f BC-MITSUBISHI-RAISES-CAR 06-29 0081 FOUNTAIN VALLEY, Calif, June 29 - Mitsubishi Motor Sales of America Inc said it is raising car prices by an average 1.8 pct, or 227 dlrs and truck prices by 1.6 pct, or 150 dlrs, because of the continued strength of the Japanese yen against the U.S. dollar. The company also said the price for its Montero sport/utility vehicle will be increased by 1.5 pct, or 150 dlr. The changes are effective immediately, Mitsubishi also said. Reuter 29-JUN-1987 13:16:25.92 acq F f1879 reute r f BC-BECOR-<BCW>-TO-ADJOUR 06-29 0071 SOUTH MILWAUKEE, Wisc, June 29 - Becor Western Inc said no business will be transacted at the shareholders meeting scheduled for 1000 CDT tomorrow and the meeting will be permanently adjourned. If a definitive agreement or transaction results from any of the offers now pending for the company's stock, Becor said, a date for a new shareholders meeting will be established. Reuter 29-JUN-1987 13:18:08.98 acq usa F f1884 reute u f BC-UNIVERSAL-COMMUNICATI 06-29 0092 ROANOKE, Va., June 29 - Universal Communication Systems Inc said it has tentatively agreed to sell substantially all its assets for about 79 mln dlrs in cash and notes plus limited profit participation. The company said the terms of the sale have been approved by its board and by Prime Motor Inns Inc <PDQ>, owner of about 84 pct of Universal's outstanding stock. It described the purchaser as a subsidiary of a company in the communications field which is one of the 100 largest U.S. corporations. The company said the transaction involves the payment of 20 mln dlrs in cash, a non-interest bearing payment of 11.3 mln dlrs in four equal instalments over four years and two promissory notes guaranteed by an affiliate of the purchaser. It said a 31.5 mln dlr 14 pct note is payable in four equal instalments over four years. It said a 16.3 mln dlr 8.5 pct note due Dec 31, 1992, includes participation in the 1992 profits of the acquiring company. Universdal said the profit element can be terminated with payments by the purchaser of either five mln dlrs in 1988, six mln dlrs in 1989, seven mln dlrs in 1990 or eight mln dlrs in 1991. Reuter 29-JUN-1987 13:18:59.88 F A RM f1887 reute f f BC-U.S.-TO-END-TAX 06-29 0014 ****** 29-JUN-1987 13:22:06.10 acq canada E F f1899 reute u f BC-UNION-<UEL.TO>-ENDS-P 06-29 0069 TORONTO, June 29 - Union Enterprises Ltd said its agreement to sell its interest in Canbra Foods Ltd to Macluan Capital Corp has been terminated. Union said Macluan failed to make an offer for Union's 72 pct interest in Canbra before the June 22 deadline. Union said it is no longer bound by the agreement and is continuing to seek a buyer for the interest. Reuter 29-JUN-1987 13:22:50.81 usa F f1902 reute d f BC-PEPSI-<PEP>-NAMES-NEW 06-29 0070 NEW YORK, June 29 - PepsiCo Inc's Pepsi-Cola USA said it named privately owned Lockhart and Pettus Inc of New York to handle its advertising and promotion to Black consumers. Pepsi-Cola USA said it is the second major new account for Lochart and Pettus in as many weeks. Earlier this month, Chrysler Motors Corp named the agency to handle its minority marketing. Reuter 29-JUN-1987 13:23:21.29 usa F f1903 reute d f BC-ATTN-IAN-resending 06-29 0051 NEW YORK, June 29 - Unicorp American Corp <UAC.A> said it will take an after-tax gain in the second quarter of 1.5 mln dlrs from the sale of three properties in the Boston area. It said the properties were sold for aggregate proceeds of about 6.3 mln dlrs. Reuter 29-JUN-1987 13:24:24.76 usauk F f1905 reute r f BC-MOELX-<MOLX.O>,-<DUBI 06-29 0103 LISLE, Ill, June 29 - Molex Inc said it signed a distribution and share-purchase agreement with Dubilier PLC, of Abingdon, Oxon, England. Under the agreement, Molex will sell Dubilier's products worldwide and receive 2.1 mln ordinary shares in Dubilier at a price of two British pounds, or 3.22 U.S. dlrs, a share. The shares, which represent 6.39 pct of the existing issued share capital of Dubilier, will be issued under a U.K. subscription agreement that restricts Molex from disposing of the shares and from increasing its holding above 9.9 pct for two years. Reuter 29-JUN-1987 13:25:33.13 acq usa F f1907 reute d f BC-SSMC-<SSM>-TO-BUY-CUT 06-29 0091 STAMFORD, Conn, June 29 - SSMC Inc said it has executed a letter of understanding to acquire the Parts Catalog Division of <Cutters Exchange Inc> for an undisclosed amount. SSMC, spun off from the Singer Co <SMF> a year ago, said that the Parts Catalog Division wholesales parts and needles to the industrial sewing trade in the U.S. Under the agreement, key managers and employees of the Parts Catalog Division in Nashville, Tenn, will relocate to the SSMC facility in Murfreesboro, SSMC said. Reuter 29-JUN-1987 13:26:35.63 usa F f1911 reute d f BC-SUNRIVER-INTRODUCES-N 06-29 0087 NEW YORK, June 29 - <SunRiver Corp>, a Jackson, Miss.-based computer products company, said it introduced the first line of computer workstations designed to be connected with powerful personal computers over fiber-optic cable. The privately held company said up to 16 of its new Cygna 386 workstations can attach to a PC based on Intel Corp's <INTC.O> 80386 microprocessor, which include models sold by Compaq Computer Corp <CPQ> and International Business Machines Corp <IBM>. SunRiver said the Cygna workstations allow users to access files and share printers and other equipment controlled by an 80386-based PC. In addition, the workstations are the first of their kind to offer full graphics capabilities in a multiuser-multitasking environment, Sunriver said. The company said the Cygna line will be available in October at prices starting at 1,599 dlrs. Reuter 29-JUN-1987 13:27:12.01 interest usanetherlands F A RM f1914 reute b f BC-U.S.-TO-END-NETHERLAN 06-29 0055 WASHINGTON, June 29 - The Treasury Department said it notified the Netherlands that it was terminating the 1948 income tax treaty as it applies to the Netherlands Antilles and Aruba. The termination is effective January 1, 1988, the Treasury said in a two-sentence announcement. The Treasury decided to end the treaty after negotiations between the United States and the Netherlands over the past eight years had failed to reach an accord, a Treasury spokesman said. The decision means the sale by U.S. parent companies of Eurobonds through Netherlands Antilles subsidiaries will no longer be free of the 30 pct U.S. withholding tax, the spokesman said. Terminating the tax treaty with the Netherlands Antilles may cause bond issuers to call in the bonds early. Most have maturities of 10 years or less and were issued before 1984, the spokesman said. He said the Treasury did not expect the action to have an adverse effect on U.S. issuers of the bonds because the general decline in interest rates means they will be able to refinance at lower interest rates. However, the holders of the bonds presumably will be faced with lower yields. Reuter 29-JUN-1987 13:34:36.60 usa F Y f1942 reute r f BC-WESTINGHOUSE-<WX>-TAK 06-29 0099 HANFORD, Wash, June 29 - Westinghouse Electric Corp took over operations of several facilities at the U.S. Department of Energy's Hanford Nuclear Reservation near Richland, Wash, the DOE said. It said that Westinghouse replaces Rockwell International and UNC Nuclear Inc, who have been criticized by the state of Washington, the federal government and environmentalists for failing to correct safety problems at Hanford. Westinghouse signed a four billion dlr contract three weeks ago to operate Hanford for the next five years, DOE said. The contract provides the company and annual profit between 1.4 mln and 14.6 mln dlrs, depending on the quality of its performance, the DOE said. "Our first objective is to be safe," soid William Jacobi, Westinghouse general manager at Hanford, adding, "If we can make that (safety) a priority we can have the production we need." Westinghouse's chief mission at Hanford is to produce plutonium, supervise research for the Strategic Defense Inititive, SDI, and the cleanup of military nuclear waste stored in tanks at the site since the 1940's, company and DOE officials said. Reuter 29-JUN-1987 13:42:13.11 usa F f1965 reute r f BC-ELDON-INDUSTRIES-<ELD 06-29 0095 NEW YORK, June 29 - Eldon Industries Inc expects a record July 12 second quarter, Chairman Robert Silverstein told the New York Society of Security Analysts. The company's previous best second quarter was the period ended July 12, 1986 when Eldon had earnings of 1,353,000 dlrs, or 31 cts a share on sales of 20.7 mln dlrs. Silverstein said, "If these positive trends continue, we look forward to favorable quarterly comparisons for the balance of the year, resulting in another record year in sales and income." Reuter 29-JUN-1987 13:42:34.29 uk RM f1966 reute u f BC-WESTLAND-GETS-40-MLN 06-29 0101 LONDON, June 29 - <Westland Group Plc> said it signed a 40 mln stg, five-year unsecured syndicated bond and guarantee facility. In a prepared statement it said the facility would support future sales, particularly of helicopters, and would be extendable annually on an evergreen basis. The facility also could be used to guarantee down payments and advances by customers and to provide performance bonds. The facility was provided equally by seven international banks from Europe and Japan and by Britain's Export Credits Guarantee Department. REUTER 29-JUN-1987 13:43:11.29 usa A RM f1969 reute u f BC-GREYHOUND-CORP-<G>-DE 06-29 0110 NEW YORK, June 29 - Moody's Investors Service said it affirmed Greyhound Corp's Baa-2 subordinated debt rating and Prime-2 commercial paper rating. Some 160 mln dlrs of long-term debt is affected. Moody's said Greyhound's debt had been under review for possible downgrade since May, when it agreed to acquire the in-flight catering and airport terminal concession businesses of Carson Pirie Scott and Co for about 390 mln dlrs. Moody's said it expects Greyhound to experience generally improved results over the next several years due to recent strategic acquisitions. It has reduced debt via asset sales. Reuter 29-JUN-1987 13:44:12.55 acq usa F f1972 reute r f BC-CAROLCO-PICTURES-<CRC 06-29 0082 LOS ANGELES, June 29 - Carolco Pictures Inc said it signed a letter of intent to exchange 2.2 mln of its shares for all Orbis Communications Inc stock within the next 60 days. It said the Carolco shares used in the exchange are valued at 7.00 dlrs a share or a total value of 15.4 mln dlrs and will be adjusted based on the price of Carolco shares on the closing date. It said Orbis management will remain in place for at least three years. Reuter 29-JUN-1987 13:45:09.78 copper france C M f1974 reute u f BC-CIPEC-STUDYING-COPPER 06-29 0104 PARIS, June 29 - The Paris-based Intergovernmental Council of Copper Exporting Countries (CIPEC) is closely studying the current backwardation in world copper market prices but does not envisage taking corrective action at present, CIPEC sources here said. The organisation's executive and marketing committees reviewed the current market situation during a series of meetings here late last week, but took no major decisions. The sources noted that the backwardation - premium of nearby supply over forward delivery - dates back several weeks and is the longest on record. "It's unusual," one official said, but added CIPEC did not have any immediate recipe to remedy the situation. The meetings featured a gathering of the 10 directors of CIPEC's regional copper development and promotion centres, which are based in Europe, Japan, India and Brazil. Their main aim was to prepare the ground for the annual ministerial meeting of CIPEC, which is scheduled for Zaire in late September. The last three ministerial meetings have been held in Paris to keep down costs. Reuter 29-JUN-1987 13:45:15.23 canada E F f1975 reute d f BC-PREMDOR-(PDI.TO)-TORO 06-29 0070 TORONTO, June 29 - Premdor Inc, a wooden door manufacturer, said employees at its Ellesmere Road plant in Toronto rejected a tentative contract agreement reached Saturday and this morning went on strike. It said the employees narrowly rejected the agreement reached with the United Brotherhood of Carpenters and Joiners of America. The company gave no further details. Reuter 29-JUN-1987 13:46:34.19 usa F f1983 reute r f BC-HEALTH-AND-REHABILITA 06-29 0101 CAMBRIDGE, Mass, June 29 - Health and Rehabilitation Properties Trust said it has reached an understanding to purchase three skilled nursing facilities in Massachusetts and Connecticut for 29 mln dlrs, and lease them back to Greenery Rehabilitation Group Inc <GRGI.O> of Cambridge, Mass. Health and Rehabilitation Properties said The facilities are Beverly Nursing Home, a 160 bed facility in Beverly, Mass, Liberty Pavillion Nursing Home, a 160-bed facility in Danvers, Mass, and New Lakeview Convalescent Home, a 210-bed facility in Chesire, Conn. Health and Rehabilitation Services said each of the facilities provides skilled nursing care to medically demanding geriatric patients. Health and Rehabilitation Services said the buildings will be leased back to Greenery for an initial term of seven years, subject to renewal options for an additional 23 years. The transaction is expected to close on or before August 31. Health and Rehabilitation said the facilities are now operated by Greenery Rehabilitation, which owns 9.9 pct of Health and Rehabilitation's outstanding shares. Reuter 29-JUN-1987 13:48:49.61 earn canada E F f1993 reute r f BC-CANADIAN-HOME-SHOPPIN 06-29 0042 TORONTO, June 29 - Shr loss 26 cts Net loss 1,277,737 Revs 3.7 mln Note: full name Canadian Home Shopping Network Ltd. Period ended April 30 was company's first quarter of operations. Reuter 29-JUN-1987 13:49:28.82 canada E A RM f1996 reute u f BC-CANADA-SETS-NEW-STAND 06-29 0110 OTTAWA, June 29 - Finance Minister Michael Wilson announced amendments to Canada's revolving standby credit facility with a group of Canadian banks to provide more favorable terms including a reduced commitment fee and lower-cost borrowing options. The size of the facility has also been reduced to three billion dlrs U.S. from 3.5 billion dlrs U.S. The maturity debate of the new agreement will be June 19, 1992. The move follows similar amendments last November to Canada's revolving standby credit facility with international banks. The amendments provide a total of seven billion dlrs U.S. in standby credit. Reuter 29-JUN-1987 13:49:46.89 copper finlandspain M f1998 reute r f BC-OUTOKUMPU-IN-COPPER-D 06-29 0109 HELSINKI, June 26 - Finland's state-owned mining company Outokumpu Oy said in a statement it was entering Spanish markets as a shareholder in Iberica del Cobre, S.A., a manufacturer of copper products. Outokumpu will acquire 21 pct of the shares in the Spanish company and a company will be set up as an agent for Outokumpu Spain. The deal awaits approval by the Spanish government. Iberica del Cobre makes tubes, rods, rolled and drawn copper and alloy products and its sales of 87,000 tonnes of output in 1986 amounted to 22 billion pesetas. Outokumpu's turnover in 1986 was 7.58 billion markka. Reuter 29-JUN-1987 13:49:51.59 earn usa F f1999 reute r f BC-CONCORD-FABRICS-INC-< 06-29 0055 NEW YORK, June 29 - Period ended May 31 Oper shr 31 cts vs 29 cts Oper net 552,035 vs 525,729 Sales 36.7 mln vs 29.1 mln Nine mths Oper shr 1.08 dlrs vs 1.04 dlrs Oper net 1,931,488 vs 1,864,075 Sales 104.9 mln vs 87.6 mln NOTE: 1986 period ended June One NOTE: Earnings exclude gain on disposal of discontinued operations of 162,000 dlrs, or nine cts a share vs loss of 585,175 dlrs, or 33 cts a share in the quarter and a gain of 432,000 dlrs, or 24 cts a share vs a loss of 585,175 dlrs, or 33 cts a share for the nine months 1986 earnings exclude losses from discontinued operations of 111,024 dlrs, or six cts a share in the quarter and 237,773 dlrs, or 13 cts a share for the nine months Reuter 29-JUN-1987 13:50:58.24 earn usa F f2007 reute r f BC-GENERAL-PUBLIC-UTILIT 06-29 0042 PARSIPPANY, N.J., June 29 - Period ended May 31 Shr 1.81 dlrs vs 1.45 dlrs Net 113,752,000 vs 90,902,000 Revs 1.12 billion vs 1.20 billion NOTE: Full name is General Public Utilities Corp Reuter 29-JUN-1987 13:51:34.00 usa F f2011 reute h f BC-VMX-<VMXI.O>-UNVEILS 06-29 0070 DALLAS, June 29 - VMX Inc said it has introduced three new voice messaging capabilities called Host Data Link, Auto Scheduler and User Changeable Voice Codes. The company said Host Data Link and Auto Scheduler streamline and automate reporting functions, while User Changeable lets individual users create and update their own group codes from their voice mailbox. Reuter 29-JUN-1987 13:51:59.25 earn usa F f2014 reute w f BC-COMTREX-SYSTEMS-CORP 06-29 0039 MT. LAUREL, N.J., June 29 - Year ended March 31 Shr loss three cts vs profit 10 cts Net loss 58,285 vs profit 182,039 Sales 3,857,122 vs 3,188,555 Avg shrs 2,108,080 vs 1,891,250 Reuter 29-JUN-1987 13:52:13.47 usa F f2015 reute s f BC-<FRANKLIN-AGE-HIGH-IN 06-29 0026 SAN MATEO, Calif., June 29 - Mthly div 3.6 cts vs 3.6 cts last month Payable July 14 Record July 1 Reuter 29-JUN-1987 13:52:34.96 usa F f2016 reute s f BC-<FRANKLIN-U.S.-GOVERN 06-29 0027 SAN MATEO, Calif., June 29 - Mthly div 5.8 cts vs six cts last month Payable July 14 Record July 1 Reuter 29-JUN-1987 13:52:49.80 usa F f2017 reute s f BC-<FRANKLIN-CALIFORNIA 06-29 0027 SAN MATEO, Calif., June 29 - Mthly div 4.5 cts vs 4.5 cts last month Payable July 14 Record July 1 Reuter 29-JUN-1987 13:53:04.40 usa F f2018 reute s f BC-<FRANKLIN-NEW-YORK-TA 06-29 0027 SAN MATEO, Calif., June 29 - Mthly div 7.3 cts vs 7.3 cts last month Payable July 14 Record July 1 Reuter 29-JUN-1987 13:53:13.24 usa F f2019 reute s f BC-STANDARD-PRODUCTS-CO 06-29 0023 CLEVELAND, June 29 - Qtly div 20 cts vs 20 cts prior Pay July 24 Record July 10 Reuter 29-JUN-1987 13:54:05.60 acq usa F f2022 reute u f BC-SETON-<SEL>-DIRECTORS 06-29 0042 NEWARK, N.J., June 29 - Seton Co said its board of directors unanimously approved an agreement and plan of merger providing for the merger of Seton with a unit of S Acquisition Corp, a New Jersey company. Seton said its board of directors unanimously approved the merger in a meeting held today. Seton said the agreement and plan of merger provides that all shares of Seton Co common stock not held by S Acquisition Corp, or its units, will be converted upon the merger into the right to receive 15.88 dlrs per share in cash. Reuter 29-JUN-1987 13:55:31.59 south-africa F f2028 reute d f BC-ANGLO-AMERICAN-ATTACK 06-29 0094 JOHANNESBURG, June 29 - Anglo American Corp of South Africa Ltd. <ANGL.J> has attacked a key apartheid law barring blacks from living in white residential areas as "racially discriminatory" and "economically wasteful." The Group Areas Act, was also a "misuse of resources the South African economy can no longer sustain," the directors said in the annual report released today. These latest remarks by South Africa's biggest company, follows past criticisms by the firm that apartheid was economically inefficient. The company said the country's prospects for economic growth had improved in the past few months after two years of deep recession, but cautioned that the economic outlook was heavily dependent on a solution to South Africa's political turmoil. The directors said the resumption of sustained economic growth was dependent on stable domestic conditions and the restoration of normal international relationships. The South African government this year is targeting three pct real growth in gross domestic product against an increase of less than one pct last year. "A moderate rate of growth in the year ahead should not give rise to strains on the balance payments, provided there is not a substantial deterioration in export earnings or an acceleration of capital outflows," Anglo American said. Anglo American last month reported a 25.8 pct advance in net attributable profit to 1.5 billion rand in the year to March 31. REUTER 29-JUN-1987 13:55:55.25 japangreece RM f2031 reute u f BC-JAPANESE-BANKS-LEND-2 06-29 0087 ATHENS, June 29 - The central state owned Bank of Greece said a consortium of Japanese banks will lend it 20 billion yen for use in the public sector. The Bank said in a statement the loan will be for 10 years with a five year grace period. The first five years of the loan will have a fixed interest rate, slightly above the long term prime rate of the Japanese money market, with an adjustment in the second five years in accordance with prevailing market rates. Banks in the consortium are Bank of Tokyo International Ltd, Industrial Bank of Japan Ltd, The Long Term Credit Bank of Japan, Dai-Ichi Mutual Life Insurance Co, Sumitomo Bank Ltd, Mitsubishi Bank Ltd, Sanwa Bank and Yashouda Bank and Trust Corp, the Bank of Greece said. REUTER 29-JUN-1987 13:56:21.67 acq usa F f2032 reute u f BC-DI-GIORGIO-<DIG>-TO-E 06-29 0078 SAN FRANCISCO, June 29 - Di Giorgio Corp said it plans to respond to an unsolicited recapitalization plan proposed by Gabelli and Co Inc after the company, its board and its investment bankers evaluate the proposal. Earlier, Gabelli said in a filing with the Securities and Exchange Commission that it holds a 28.5 pct stake in DiGiorgio and that it, together with Gamco Investors Inc may seek control of the company. In addition, on June 25 the Gabelli group proposed to acquire all of Di Giorgio's common shares for a combination of 20 dlrs per share in cash, a subordinated note with a face value of eight dlrs and one common share of the post-buyout company. The June 25 buyout proposal remains open until July 17. Reuter 29-JUN-1987 13:58:18.16 usa F f2036 reute r f BC-COURT-TO-HEAR-NEC-LAW 06-29 0077 MOUNTAIN VIEW, Calif., June 29 - Nec Electronics Inc said the U.S. Ninth District Circuit Court of Appeals has agreed to hear the company's petition seeking the disqualification of the judge presiding over its lawsuit against Intel Corp <INTC.O>. In granting the hearing the court directed Intel to respond to the NEC petition by July 16, NEC said. The petition stems from a suit filed by NEC against Intel in 1984. In its complaint NEC is seeking a judgement stating that microcode is not copyrightable subject matter and that the microcode NEC uses in its V-Series microprocessors does not infringe on any valid Intel corprights. During May last year the judge presiding over the case, William Ingram, submitted a financial disclosure report to the U.S. Judicial Conference which showed that he owned Intel stock through an investment club throughout the proceedings, NEC said. Reuter 29-JUN-1987 13:59:50.60 usa F f2040 reute r f BC-INT'L-BANKNOTE-<IBK> 06-29 0048 NEW YORK, June 29 - International Banknote Co Inc said it accepted for exchange 3,484,000 dlrs principal amount of its 10-1/4 pct subordinated debentures due Aug 1, 1998. It said the exchange was part of its offer, which expired June 26. Reuter 29-JUN-1987 14:00:43.21 gold canada E F f2043 reute r f BC-GUNNAR-GOLD-(GGG.TO) 06-29 0089 CALGARY, June 29 - Gunnar Gold Inc said it and Mill City Gold Inc signed an option and joint venture agreement with Tyranex Gold Inc on the Tyranite gold property in Ontario. Gunnar said it and Mill City can earn a 50 pct interest in Tyranex's option to buy the Tyranite gold mine by spending up to five mln dlrs on exploration, development, and feasibility studies by 1990. It said the companies may form a joint venture partnership to bring the mine to full commercial production. Reuter 29-JUN-1987 14:01:22.76 earn usa F f2045 reute d f BC-DATA-ARCHITECTS-INC-< 06-29 0042 WALTHAM, Mass., June 29 - Shr 19 cts vs 16 cts Net 502,000 vs 401,000 Revs 8,791,000 vs 6,650,000 Six mths Shr 38 cts vs 29 cts Net 989,000 vs 745,000 Revs 16.3 mln vs 12.5 mln Reuter 29-JUN-1987 14:01:58.23 usa F f2048 reute r f BC-CONTROL-DATA-<CDA>-GE 06-29 0094 MINNEAPOLIS, June 29 - Control Data Corp said the Aeronautical Systems Division of the U.S. Air Force awarded it a 13.7 mln dlr contract to provide a Central Datacomm System. It said the system will act as the central interface between numerous user organizations and the division's Information Systems and Technology Center at Wright-Patterson Air Force Base in Ohio. Terms of the five-year, two-phase contract call for Control Data to supply equipment, software, maintenance, training and support services. Reuter 29-JUN-1987 14:02:29.96 usa F f2052 reute d f BC-TELEQUEST-INC-<TELQ.O 06-29 0080 SAN DIEGO, June 29 - TeleQuest Inc said that Henry Marcheschi, president, chairman and ceo of the company, has resigned for health reasons. The board of directors has elected Robert Lee, a co-founder of the company and former executive vice president of manufacturing and engineering, as president and chief executive officer, the company said. Marcheschi will continue to work for the company as a consultant, Telequest added. Reuter 29-JUN-1987 14:03:47.92 usa F f2061 reute u f BC-HOSPITAL-GROUP-IS-AGA 06-29 0098 CHICAGO, June 29 - The American Hospital Association said the best way to prevent the spread of AIDS to hospital workers is for workers to wear protective clothing rather than through routine tests of all hospital patients for the disease. The non-profit advocacy organization, which represents hospitals and patients, recommended that hospital workers should wear protective gear whenever there is a chance they will be exposed to blood or other bodily fluids, regardless of whether the fluids are known to be infected with AIDS. The group also said that "reliance on negative AIDS test results to determine when to take specific precautions can lead to a false sense of security among health care workers." So far there are nine cases on record of hospital workers contracting AIDS from hospital patients. Despite the low risk of contracting, the group said, "Hospital workers are understandly concerned about their vulnerability (to AIDS)." There are 3.6 mln workers in the nation's hospitals with nurses and housekeepers the most likely to come in contact with blood and body fluids on a daily basis, the group said. Among the Americal Hospital Association's recommendations were that health care workers exposed to body fluids must wear gloves, and in some cases, gowns, masks, and eye coverings. Reuter 29-JUN-1987 14:05:04.82 coffee colombiabrazil dauster ico-coffee C T f2068 reute u f BC-consumer-countries-sh 06-29 0109 MEDELLIN, Colombia, June 29 - Consumer countries should not intervene in the distribution of coffee export quotas, Brazilian Coffee Institute president Jorio Dauster said. "Distribution of export quotas should be in the hands of producers as has been traditional," Dauster, a delegate at the recent coffee symposium here, told journalists. "When consumers want to get involved, talks are much more difficult." The main consumer country the United States and main producer Brazil failed to reach agreement on quota distribution when the International Coffee Organisation (ICO) met in February. Dauster said Brazil's role when the ICO meets in London in September will be to support the world coffee pact, defend its market share and argue for distribution of quotas to be in the hands of producer countries. "We have sacrificed a great deal already," he said. "this year we have a crop of 35 mln bags, we have economic problems and we are not in a position to do favours." Reuter 29-JUN-1987 14:07:06.52 gold canada M f2074 reute d f BC-GUNNAR-GOLD-IN-VENTUR 06-29 0088 CALGARY, June 29 - Gunnar Gold Inc said it and Mill City Gold Inc signed an option and joint venture agreement with Tyranex Gold Inc on the Tyranite gold property in Ontario. Gunnar said it and Mill City can earn a 50 pct interest in Tyranex's option to buy the Tyranite gold mine by spending up to five mln dlrs on exploration, development, and feasibility studies by 1990. It said the companies may form a joint venture partnership to bring the mine to full commercial production. Reuter 29-JUN-1987 14:11:29.39 usa F f2087 reute r f BC-CROWN-CRAFTS-<CRW>-SE 06-29 0091 CALHOUN, GA., June 29 - Crown Crafts Inc said it expects to report record sales and earnings for the June 28 first quarter. The company said its prior record sales quarter was the second quarter of fiscal 1987 with sales of 15,097,000 dlrs. Its prior record net earnings and primary earnings per share of 877,000 dlrs, or 1.15 dlrs a share, were achieved in the third quarter of fiscal 1987. Crown also said its backlog stands at more than 17.0 mln dlrs, double the backlog a year ago. Reuter 29-JUN-1987 14:12:25.68 acq ukusa F Y f2088 reute b f BC-BRITISH-PETROLEUM-COM 06-29 0108 LONDON, June 29 - British Petroleum Company PlC <BP.L> has completed its merger with Standard Oil Co of the U.S. <SRD>, raising its holding to 100 pct from 55 pct, BP said in a statement. The acquisition was made through BP's wholly-owned subsidiary <BP America Inc>. BP took a 25 pct stake in Standard in 1970, raising its stake to 53 pct in 1978 and 55 pct in 1984. BP chairman Sir Peter Walters will be chairman of BP America, while Robert Horton is to be vice-chairman and chief executive officer, with Frank Mosier as president. BP said further details would be released on July 21. Reuter 29-JUN-1987 14:14:05.88 canada E F f2092 reute r f BC-GETTY-RESOURCES-(GEY. 06-29 0084 VANCOUVER, June 29 - Getty Resources Ltd said it completed its previously announced sale of 9.8 mln dlrs worth of subordinated notes convertible into 930,000 common shares of the company at 10.50 dlrs each. Getty said it plans to file a prospectus with the Ontario Securities Commission and will be able to force conversion of the notes into common shares. Getty said it plans to use the money for Canadian mineral projects it is currently exploring. Reuter 29-JUN-1987 14:14:19.91 earn usa F f2093 reute w f BC-THOR-ENERGY-RESOURCES 06-29 0038 TYLER, TEXAS, June 29 - Shr loss four cts vs loss seven cts Net loss 267,000 vs loss 445,000 Revs 6,407,000 vs 7,428,000 NOTE: Full name is Thor Energy Resources Inc Reuter 29-JUN-1987 14:14:52.72 usa F f2095 reute h f BC-AMERICAN-CENTURY-<ACT 06-29 0076 SAN ANTONIO, TEXAS, June 29 - American Century Corp said its Commerce Savings subsidiary received 42.8 mln dlrs from the foreclosure of certain properties in Aspen, Colo. It said the sum represents the amount Commerce bid for the properties in the April foreclosure sale plus interest. The properties include a hotel and condominium development site, the 60-acre Aspen Meadows development and a residence. Reuter 29-JUN-1987 14:15:05.71 uk F f2096 reute h f BC-JAGUAR-PLANS-ONE-BILL 06-29 0106 LONDON, June 29 - Jaguar Plc <JAGR.L> will spend about one billion stg over the next six years on expanded production, automation and improved efficiency, Jaguar chairman Sir John Egan said. He told reporters the company planned to raise production to around 80,000 cars a year by 1992 from 47,000 this year, while productivity was expected to rise to 5.5 cars per worker in 1990 compared with four cars now. Egan said the XJ6 model introduced last October was the first of a new saloon car family. Jaguar planned to bring out a new sports car in the early 1990s, probably called the "F." Reuter 29-JUN-1987 14:15:19.47 earn usa F f2098 reute d f BC-HEI-CORP-<HEIC.O>-4TH 06-29 0052 HOUSTON, June 29 - Oper shr loss 13 cts vs profit three cts Oper net loss 644,000 vs profit 184,000 Revs 24.9 mln vs 22.1 mln Year Oper shr loss nine cts vs profit 21 cts Oper net loss 429,000 vs profit 1,123,000 Revs 90.8 mln vs 86.5 mln NOTE: Revenues exclude medical publishing and retail operations the company decided to dispose of during the fourth quarter which had fiscal year revenues of 17.3 mln dlrs vs 14.4 mln dlrs. Operating results exclude discontinued operations which had year loss of 364,000 dlrs vs profit 313,000 dlrs. Reuter 29-JUN-1987 14:24:34.32 usa F f2108 reute r f BC-NBC-1STLD 06-29 0104 NEW YORK, June 29 - National Broadcasting Co, a unit of General Electric Co <GE>, said programming has not been affected by a strike which began just after midnight June 28. "Right now things are running very smoothly," said NBC spokeswoman McClaine Ramsey. The strike by members of the National Association of Broadcast Employees, representing 2,800 of NBC's 8,000 workers, began after the network imposed a contract which the union said was unacceptable. The union said its main objection to the contract was that it permitted NBC to employ additional part-time workers. Ramsey said managers had been trained to replace the roles of many of the producers, news writers, editors and technicians who walked off the job. She said no reductions in programming, much of which is summer re-run schedule, were expected. NABET executive board member Bill Freeh said many people, some brought in from foreign news bureaus, had crossed picket lines set up at NBC television stations and bureaus. Reuter 29-JUN-1987 14:24:54.82 usa F f2110 reute d f BC-AFFILIATED-PUBLICATIO 06-29 0023 BOSTON, June 29 - Qtly div eight cts vs eight cts prior Pay Sept 1 Record Aug 15 Reuter 29-JUN-1987 14:26:06.42 usa A RM f2114 reute r f BC-ALLIS-CHALMERS-<AH>-D 06-29 0088 NEW YORK, June 29 - Standard and Poor's Corp said it downgraded 95.9 mln dlrs of debt of Allis-Chalmers Corp. Cut to D from B-minus were the 6.1 pct sinking fund debentures due 1990 and to D from C were the cumulative convertible preferred stock. S and P cited the company's filing for reorganization under Chapter 11 of the federal bankruptcy code. The issues were removed from review where they were placed on March nine due to the firm's failed recapitalization plan. Reuter 29-JUN-1987 14:27:22.36 yugoslaviauaeiraniraq RM Y V f2116 reute u f AM-GULF-UAE 06-29 0110 ABU DHABI, June 29 - Yugoslavia and the United Arab Emirates (UAE) have agreed to initiate efforts to end the Iraq- Iran war, UAE Minister of State for Foreign Affairs Rashid Abdulla al-Nuaimi said today on return from Belgrade. "We agreed during the talks to initiate efforts to end the Iraq-Iran war, call for an international peace conference for the Middle East and to revive and support the Non-Aligned states," the Emirates news agency WAM quoted him as saying. He was the first senior UAE official to visit Yugoslavia since the two countries established diplomatic relations last November. Reuter 29-JUN-1987 14:29:39.05 usa amex F f2118 reute d f BC-UNO-RESTAURANT-<UNO> 06-29 0057 NEW YORK, June 29 - The American Stock Exchange said 4,250,000 shares of Uno Restaurant Corp, holding company for a chain of 37 pizza restaurants, began trading under the symbol "UNO." The West Roxbury, Mass.-based company previously traded in the NASDAQ National System under the symbol "UNOS." Reuter 29-JUN-1987 14:30:17.62 oilseedsoybeangrainwheatcorn C G f2121 reute f f BC-export-inspections 06-29 0019 ****** 29-JUN-1987 14:31:01.42 V f2124 reute u f BC-rtr-commodity-index 06-29 0020 Today - 1631.4 Previous - 1614.2 Four weeks ago - 1628.9 Year ago - 1453.8 Reuter 29-JUN-1987 14:31:41.43 acq usa F f2128 reute r f BC-RTE-<RTE>-BUYS-SOME-E 06-29 0037 BROOKFIELD, WISC, June 29 - RTE Corp said it completed the purchase of the U.S. aluminum electrolytic capacitor business and related assets of Emhart Corp, for undisclosed terms. Reuter 29-JUN-1987 14:33:33.14 usabrazil RM f2138 reute u f BC-WORLD-BANK-APPROVES-1 06-29 0115 WASHINGTON, June 29 - The World Bank said it approved a 100 mln dlr loan to help Brazil finance the rehabilitation of the railway in Sao Paulo State and establish a institutional reform program as a base for future commercial operation. The 285 mln dlr project is designed to financially rehabilitate the railway -- the primarily state-owned Ferrovia Paulista, S.A. -- and improve transportation on the lines leading to the city of Sao Paulo and the port of Santos. The loan is for 14-years, including three and one-half years of grace, and carries a variable interest rate, currently 7.92 pct, linked to the bank's cost of borrowing. Reuter 29-JUN-1987 14:35:23.77 canada E A RM f2146 reute u f BC-BC-CANADA-(SCHEDULED 06-29 0103 By Peter Cooney, Reuters TORONTO, June 29 - Echoes of London's Big Bang -- stock market deregulation -- will be heard Tuesday when the Canadian securities industry sets off its own fireworks. Some companies are quickly taking advantage of deregulation, but more significant moves are likely to be a year or more down the road, analysts say. They say most foreign firms will focus at first on bond trading, debt financing and underwriting, areas in which they have experience under the old rules that allowed them to provide government debt financing and advisory services. "When they learn about Canada, they might go into retail," said Carney at Merrill Lynch Canada. "Then they will eventually just start to buy up the little guys. If the bigger boys' price comes down, they'll end up taking those ones over too." Under the new rules, barriers that kept banks, brokerage houses, insurance companies and trust firms out of each others' businesses will be swept away in favor of wide-open competition. The deregulation, sometimes nicknamed "Little Bang," will allow Canadian banks and other domestic financial institutions to set up securities units or acquire existing brokerages. Foreign companies will also be able to form their own securities divisions in Ontario or buy up to 50 pct of a Canadian firm. A year from now they can raise that stake to 100 pct. Foreign firms that entered Canada after 1971 can currently own no more than 10 pct of a Canadian brokerage. Deregulation was expected to generate a major shakeout by June 30, involving mergers of existing firms and buyouts by foreign and domestic financial giants. So far few deals have become reality, however, despite a swirl of rumors and merger talks. In the heat of deregulation fever, many Canadian investment dealers are demanding up to four times book value, scaring off prospective suitors, analysts said. "I would think they (the brokerages) will have to lower their asking prices," said financial services analyst Jeff Carney at Merrill Lynch Canada Inc., which recently terminated talks to acquire prominent Canadian brokerage Burns Fry Ltd. "I think (a high asking price) is what scared Merrill Lynch away from Burns Fry," added Carney. "It is just a lot of money. When your asset walks out the door every night, it is difficult to pay that amount of cash." Carney said another factor in the slow pace of buyouts was uncertainty about the final deregulation rules, which were issued and approved only in mid-June. Most major foreign and Canadian financial players have focused their deregulation strategy on planning their own Canadian securities units or buying seats on the Toronto Stock Exchange, Canada's largest equities market. Japan's Nomura Securities Co. Ltd., Yamaichi Securities Co. Ltd., Daiwa Securities Co. Ltd. and Nikko Securities Co. Ltd. recently bought seats on Toronto's exchange, while United States investment banks such as Salomon Inc. and Goldman, Sachs and Co. have set plans for Canadian subsidiaries. The few proposed foreign investments in Ontario firms include agreements by New York's Shearson Lehman Brothers Inc. to raise its stake in McLeod Young Weir Ltd. to 30 pct from 10 pct and by the British firm of James Capel and Co. to acquire a minority interest in Brown, Baldwin, Nisker Ltd. Several industry watchers predict the flood of foreign acquisitions is likely a year away, when the newcomers become familiar with Canada. Canadian firms will need such international alliances to compete in the increasingly global securities market, industry officials said. "That is one of the hopes of the regulators, that the change will throw off one or two Canadian global firms," Toronto Stock Exchange president Pearce Bunting told Reuters recently. Canada's six major banks are also expected to proceed cautiously into the securities field. Analysts said the brokers are too expensive now while the banks are coping with Brazilian loan problems. Banks will also find it tough to merge their cautious, bureaucratic culture with that of leaner, more free-wheeling securities dealers, they said. While the banks have been approached by securities firms seeking merger partners, they have not yet bought into brokerages, choosing to build securities units from within. Last week, Royal Bank of Canada, the country's biggest bank, ended merger talks with Canadian broker Wood Gundy Inc. after several months of negotiations. But analyst Thompson forecast that if one bank finally acquires an existing firm, "all the other banks will jump in. "They don't want to be perceived as missing out on something," said Prudential-Bache Securities Canada Ltd. analyst Albert Thompson, who believes that brokerages are too expensive a risk for banks. Reuter 29-JUN-1987 14:35:39.64 acq usa F f2149 reute d f BC-ROCHESTER-<RTC>-ACQUI 06-29 0068 ROCHESTER, N.Y., June 29 - Rochester Telephone Corp said it completed the acquisition of Canton Telephone Co and is now operating the company. Terms of the acquisition were not disclosed. Canton Telephone serves about 2,900 access lines in northwestern Pennsylvania and had 1986 operating revenues of about 1,300,000 dlrs, Rochester Telephone said. Reuter 29-JUN-1987 14:35:48.76 usa F f2150 reute w f BC-PRIME-COMPUTER-<PRM> 06-29 0061 NATICK, MASS., June 29 - Prime Computer Inc said it received an order from the Philadelphia board of education for more than 8.0 mln dlrs of advanced computer equipment and software for automating its administrative and student accounting systems. The systems, designed and manufactured by Prime, were introduced in April. Reuter 29-JUN-1987 14:36:03.84 acq usa F f2152 reute h f BC-SAN-FRANCISCO,-NOT-RE 06-29 0117 SAN FRANCISCO, June 25 - Corporate mergers and acquisitions in and around San Francisco over the past seven years have had only a modest effect on the metropolitan area's economy, a leading business-backed organization said. The Bay Area Council, a group of more than 300 business firms, said that a study of corporate restructuring in a nine-county area found that San Francisco itself had suffered some ill effects from corporate shake-ups but that surrounding communities had not. Seventeen of the 32 Fortune 500 companies in the area left due to corporate restructuring between 1979 and 1986, but another 21 firms were added to the list. Ten of the departing companies were based in San Francisco. During the period, only six located in the city achieved Fortune 500 status. Ted Hall, a council director and local managing director of McKinsey and Co. which conducted the survey, said the study grew out of concern that mergers and acquisitions had seriously hurt the economic climate of northern California. However, Hall said that only about 36,000 jobs had been lost in the region, while more than 600,000 new jobs were created during the period. At the same time, he said, the region experienced a greater rise in per capita income and lower unemployment than the rest of the United States and California. Council President George Keller, who also is chairman and chief executive officer of Chevron Corp., told a news conference that the region had difficulties in persuading companies to locate there because of a fragmented local political system. But he said that because of the amenities of living in San Francisco, he was the envy of many chief executives in other metropolitan area. "It's a great place to run a business," he added, "but it's a hell of a place to do business with government." The study concluded that Chevron, which mergered with Gulf Oil in 1984, would benefit in the long run from the restructuring activity. Among the corporate headquarters lost during the period were Crown Zellerbach, Memorex, Southern Pacific, Castle & Cooke and Rolm. Companies that grew enough during the period to make the Fortune 500 list included Apple Computer, Pacific Telesis, McKesson, Tandem Computer, U.S. Leasing and Amfac. The study by the management consulting firm said that, partly due to corporate restructuring, the rate of job growth in San Francisco has slowed since 1980. In addition, it said that the loss of corporate leadership had adversely affected some of the Bay Area's civic and charitable activities. Reuter 29-JUN-1987 14:39:58.52 usa A RM f2167 reute u f BC-S/P-DOWNGRADES-AMERIC 06-29 0095 NEW YORK, June 29 - Standard and Poor's Corp said it downgraded American Healthcare Management Inc's subordinated notes to D from B, affecting 80 mln dlrs of securities. S and P said that this for-profit operator of 34 actue-care hospitals missed its semi-annual interest payment on the debt. The rating agency said the failure to renegotiate terms on bank obligations was the key to this default. That is because payments on the notes are prohibited until default under terms of senior obligations is remedied. Reuter 29-JUN-1987 14:41:02.77 acq usa F f2174 reute u f BC-WTC-SHAREHOLDERS-APPR 06-29 0077 TORRANCE, Calif., June 29 - Pittston Co said WTC International N.V. shareholders approved the acquisition of the company by Pittston. Terms of the transaction call for Pittston to exchange 0.523 of its own common shares for each outstanding WTC share, Pittston said. WTC is engaged in domestic international air freight, ocean and surface freight forwarding and consolidation and distribution services. Reuter 29-JUN-1987 14:41:36.64 acq usa F f2176 reute r f BC-HOME-FEDERAL-<HFBF.O> 06-29 0110 ST. PETERSBURG, Fla., June 29 - Home Federal Bank of Florida F.S.B. <HFBF.O> said it has scheduled a special shareholders meetng for July 26 to approve proposed changes to the bank's charter and merge with Barnett Bank Inc's Barnett Bank of Pinellas County, N.A. Home Federal said the meeting is to approve a definitive agreement signed May 26, calling for each share of Home Federal's common stock to be exchanged for about 40 dlrs in market value of Barnett common stock. The exchange would be based on conversion of Home Federal shares of not less than 1.935 or more than 1.200 shares of Barnett stocks. At 40 dlrs a share, Home Federal said the total market value of the transaction would be about 175 mln dlrs. Home Federal said notice of the meeting and related proxy materials, which has been filed previously with the Securities and Exchange Commission and the Federal Home Loan Bank board, were mailed on June 26, to holders of record on June 15. Reuter 29-JUN-1987 14:43:53.21 crude uk Y f2181 reute u f BC-CHEVRON-N.SEA-FIND-MA 06-29 0102 LONDON, June 29 - A North Sea oil find announced by Chevron Corp's <CHV> Chevron Exploration North Sea Ltd may indicate a new field with recoverable crude oil reserves of 300 mln barrels, industry analysts said. Chevron said a sidetrack well on block 16/26 on the U.K. Continental shelf tested 9,000 barrels per day (bpd) of 20 API crude oil from the tertiary "Alba" sand through a three-inch surface choke. "The estimated amount of oil at the Alba field is around 320 mln barrels," Paul Spedding of stockbroker Kleinwort Grieveson and Co told Reuters. He said industry estimates put the total reserves at the field at over one billion barrels, but given the low gravity of oil, the recovery rate would be expected to be around 20-25 pct. Analysts said the results were encouraging, but the potential difficulty of operating and recovering oil in the field was shown by the fact that the first well had to be plugged and a sidetrack drilled. "The field seems to be shallow and widespread, which will require a multi-platform development in recovery, pushing costs up," Christopher Osborne of stockbroker Hoare Govett said. Most analysts said that although the low gravity of the oil found would require additional costs in recovery, the test well showed that it flows well. "Although the gravity of oil at the field seems to be low, it seems to flow quite well and around 300 mln barrels could be recovered," Carol Bell of Phillips and Drew told Reuters. However, Chevron officials declined to comment on the analysts' reserve estimates. They said that without further research and drilling in the area this summer, they would not disclose any reserve figures. Analysts said that if the field were declared commercial and developed, there would be a ready local market for the heavy crude it produced. "Most refineries are now upgraded to refine heavy oils and the price differentials between heavy and light crudes are a lot narrower today," Osborne said. Chevron operates the block on behalf of 16 companies which include British Petroleum Development Ltd, DSM Hydrocarbons (UK) Ltd, Enterprise Oil (TNS) Ltd, Marathon Int. Pet. (GB) Ltd and Phillips Petroleum Co U.K. Ltd. Reuter 29-JUN-1987 14:47:40.53 acq usa F f2189 reute r f BC-ARDEN-GROUP-<ARDNA.O> 06-29 0104 LOS ANGELES, June 29 - Arden Group Inc said it filed a registration statement with the Securities and Exchange Commission covering two issuer tender offers. It said one offer its directed to its class A common stock holders and another to holders of its 8-1/4 pct debentures due March 1, 1989. The planned offer for common stock holders calls for the company to exchange either 30 dlrs in cash, or 35 dlrs principal amount of 13 pct subordinated debentures due September 1, 1997, or one share of a new class B common stock, for each class A share held, Arden Group said. It also said the cash payment is subject to proration. In addition, the company said it plans to offer to exchange one dlr principal amount of 13 pct debentures due September 1, 1997 for each outstanding one dlr principal amount of 8-1/4 pct debentures. Reuter 29-JUN-1987 14:47:58.20 brazil C G T f2191 reute d f BC-WORLD-BANK-APPROVES-L 06-29 0112 WASHINGTON, June 29 - The World Bank said it approved a 100 mln dlr loan to help Brazil finance the rehabilitation of the railway in Sao Paulo state and establish an institutional reform program as a base for future commercial operation. The 285 mln dlr project is designed to financially rehabilitate the railway -- the primarily state-owned Ferrovia Paulista, S.A. -- and improve transport on the lines leading to the city of Sao Paulo and the port of Santos. The loan is for 14 years, including 3-1/2 years of grace, and carries a variable interest rate, currently 7.92 pct, linked to the bank's cost of borrowing. Reuter 29-JUN-1987 14:48:41.88 grainricecotton pakistan C G f2195 reute r f BC-PAKISTAN-ALLOWS-FREE 06-29 0136 ISLAMABAD, June 29 - The Pakistani government allowed the private sector to export cotton and rice in a new trade policy announced to cover the next three years. Commerce and Planning Minister Mahbubul Haq said in a televised speech it was also decided to allow duty-free import of cotton yarn. Cotton and rice are Pakistan's main exports, which have been handled exclusively by state corporations since early 1970s. Haq said now the private sector would export cotton and rice along with the state corporations. He said duty-free import of cotton yarn was allowed to make high quality yarn available to local ancillary industries and to enable them to compete effectively in the world market. This would help overcome domestic shortages of yarn, he said. Reuter 29-JUN-1987 14:49:30.94 usa F Y f2198 reute r f BC-ARIZONA-NUCLEAR-PLANT 06-29 0111 WINTERSBURG, Ariz., June 29 - The Palo Verde Unit 1 nuclear power plant was removed from service Sunday due to a leaking pipe in its circulating water system, according to the plant's operator, the Arizona Nuclear Power Project. It said the pipe, on the non-nuclear, steam-generating side of the plant, delivers water to the plant's condenser. This water is used to condense steam to drive the turbine generator, the Power Project said. The cause of the leak is being investigated and no time estimate was given for when the unit will return to service, it said, adding Unit 2 is operating at full power. The Arizona Nuclear Power Project is a consortium of southwest U.S. utilities including AZP Group's <AZP> Arizona Public Service, El Paso Electric <ELPA>, Public Service of New Mexico <PNM> and Southern California Edison <SCE>. Reuter 29-JUN-1987 14:53:03.29 acq usa F f2209 reute u f BC-LOMAS-<LNK>-SHAREHOLD 06-29 0038 DALLAS, June 29 - Lomas and Nettleton Financial Corp said its shareholders approved at a special meeting the company's acquisition of Equitable Life Leasing Corp for 263.3 mln dlrs. Equitable Life Leasing Corp is a subsidiary of Equitable Investment Corp, which is owned by the Equitable Life Assurance Co of U.S. Lomas said the acquistion price will consist of one mln in cash, 1.5 mln shares of the company's common stock, 71,000 shares of a new series C preferred stock, and 8.944 mln dlrs principal amount of nine pct senior notes due 1994. The company added that the acquisition will close June 30. Reuter 29-JUN-1987 14:54:15.63 usa F f2212 reute d f BC-BISCAYNE-HOLDINGS-<BI 06-29 0100 MIAMI, June 29 - Biscayne Holdings Inc said its stockholders approved a one-for-three reverse stock split as a portion of the amendments approved to its certificate of incorporation. The company said holders reduced the number of authorized class A common shares to 50 mln from 100 mln and reclassified each outstanding three shares into one share. About 6,036,800 shares will be outstanding after the split. Biscayne Holdings said shareholders also approved annual election of directors, eliminating provisions related to the classified board. Reuter 29-JUN-1987 14:55:12.18 acq usa F f2214 reute d f BC-ALMI-GROUP-ACQUIRES-I 06-29 0068 NEW YORK, June 29 - <ALMI Group L.P.> said its co-chairmen, Michael Landes and Albert Schwartz, and its vice chairman, Michael Spiegler, have acquired a 50 pct equity interest in <Clearview Baking Corp> for undisclosed terms. A. Dale Mayo, Clearview's president and chief executive officer, will retain a 50 pct interest in the company, ALMI Group said. Reuter 29-JUN-1987 14:55:48.65 usa F f2216 reute h f BC-SYMBOLICS-INC-<SMBX> 06-29 0087 CAMBRIDGE, Mass., June 29 - Symbolics Inc said it won a 500,000 dlr contract from NASA Ames Research Center for the preliminary design of a spaceborne symbolic processor. The company said its symbolic processing technology is used to faciliate artificial intelligence applications and other advanced computing techniques. It said its processor will be used to execute both symbolic and numeric applications on future space shuttle, space stations and deep space missions. Reuter 29-JUN-1987 14:57:41.51 usa F f2217 reute u f BC-NATIONAL-CITY-CORP-<N 06-29 0050 CLEVELAND, June 29 - National City Corp projected income of eight mln dlrs for the second quarter ending June 30 due to a 55 mln dlr charge for loan loss provisions. This compares with earnings in the second quarter of last year of 36.3 mln dlrs. National City said it expects per share income in the second quarter to be 20 cts. The company said it expects full year earnings to be comparable with last year's record 135 mln dlrs. The bank said its 55 mln dlr special loan loss provision is related to loan exposure in less developed countries in its international portfolio. Reuter 29-JUN-1987 14:58:28.00 usa F f2220 reute h f BC-ARCTURUS-INC-<ARTU>-L 06-29 0077 ACTON, Mass., June 29 - Arcturus Inc said it introduced it MegaBeam product, a three-tube high resolution data display projector. The company said the large screen projector is more than twice as bright as competing models. It said the projector would be used to show the image of a 14-inch computer terminal to large groupd on a six-foot wall screen. It said the MegaBeam is priced at 11,995 dlrs per unit. Reuter 29-JUN-1987 14:58:49.61 usa F f2223 reute s f BC-UNOCAL-CORP-<UCL>-QTL 06-29 0021 LOS ANGELS, June 29 - Shr 25 cts vs 25 cts prior qtr Pay August 10 Record July 10 Reuter 29-JUN-1987 15:03:53.90 crude ecuador opec Y RM f2236 reute u f BC-ECUADOR-TO-PRODUCE-AB 06-29 0112 QUITO, June 29 - Ecuador will produce crude oil in excess of its 221,000-bpd OPEC quota during the second half of this year, Energy Minister Fernando Santos Alvite told a news conference. Ecuador plans to produce 280,000 bpd in August, rising to 320,000 bpd next January, the minister said. "We will be producing more than the quota to pay off the crude and products we have been lent by Venezuela, Nigeria and Kuwait and to compensate for the crude we have been unable to produce during the past few months," he said. Earthquake damage to a pipeline sharply cut Ecuadorean production from March to May this year. Santos said the move had been explained to fellow OPEC members during last week's meeting in Vienna, when an increase in Ecuador's quota to 221,000 bpd from 210,000 was approved. "They understood our position and we believe we remain within the spirit of the (quota) agreement," he said. Immediately before the March quake Ecuadorean production was 250,000-260,000 bpd, with 144,000 bpd exported. While its production was down, Venezuela, Nigeria and Kuwait loaned Ecuador a total 12 mln barrels of crude and four mln barrels of products, Santos said. Reuter 29-JUN-1987 15:06:50.67 usanigerzaire RM f2247 reute u f BC-WORLD-BANK-EXTENDS-24 06-29 0082 WASHINGTON, June 29 - The World Bank said it has extended loans totalling 241 mln dlrs to Niger and Zaire to help support economic reforms through structural adjustment programs. The loans have been made through the International Development Association (IDA), the bank's concessionary lending arm, and the African Facility, a three-year IDA-administered fund that supports economic policy reforms in sub-Saharan Africa, the bank said. Zaire's structural adjustment program, supported by a 67 mln dlr IDA loan and a 94 mln dlr African Facility loan, hopes to lay the basis for sustained economic growth, the bank said. Included in the program's goals are strengthening private sector incentives, aiding macroeconomic management, and unspecified changes in transportion and agricultural policies, the bank said. Niger's structural adjustment program, supported by a 60 mln dlr IDA loan and a 20 mln dlr African Facility loan, hopes to aid public spending controls, support pricing reforms, and encourage private sector competition, the bank said. Reuter 29-JUN-1987 15:07:39.97 usa A RM f2253 reute r f BC-INTELOGIC-TRACE-<IT> 06-29 0100 NEW YORK, June 29 - Standard and Poor's Corp said it affirmed about 100 mln dlrs of B-minus subordinated debt of Intelogic Trace Inc. S and P cited the end of an attempted takeover of Burlington Industries Inc by an Asher Edelman-led group in which Intelogic was used as a financing vehicle. About 78 pct of Burlington's common shares were tendered to Morgan Stanley Group Inc, it added. S and P said Intelogic's problems expanding its computer maintenence activities have led to drops in revenues, but financial resources should remain supportive. Reuter 29-JUN-1987 15:08:16.88 usa A RM f2255 reute u f BC-ALLIS-CHALMERS-<AH>-D 06-29 0101 NEW YORK, June 29 - Moody's Investors Service said it downgraded 95 mln dlrs of outstanding Allis-Chalmers Corp issues. It lowered the sinking fund debentures to Ca from B-3 and the Series C preferred stock to Ca from Caa. Moody's cited as justification the company's filing for court protection under Chapter 11 of the Federal Bankruptcy Code. Also, the agency noted the company's inability to restructure its debt obligations. Allis-Chalmers Corp is a manufacturer of air quality control, fluids handling and solid materials processing equipment. Reuter 29-JUN-1987 15:10:19.13 usajapan RM A f2260 reute r f BC-U.S.-LEADS-JAPAN-IN-F 06-29 0113 By Hisanobu Ohse,