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TREASURY'S BAKER SAYS ECONOMIC COOPERATION WORKS

Treasury Secretary James Baker said the meeting last month in Paris in which finance ministers agreed to keep the dollar at current levels showed that the economic cooperation process was working. He said that at that meeting the surplus countries committed themselves to strengthening their growth prospects, while the deficit countries agreed to reduce their domestic imbalances. For its part, he said the United States must press forward with reductions in the federal budget deficit and must continue to oppose protectionist pressures. Reuter 

PAN ATLANTIC RE INC <PNRE> 4TH QTR NET

Oper shr 15 cts vs 1.07 dlrs Oper net 372,000 vs 2,601,000 Year Oper shr 80 cts vs 61 cts Oper net 1,952,000 vs 1,491,000 NOTE: Net excludes realized investment loss 13,000 dlrs vs gain 986,000 dlrs in quarter and gains 1,047,000 dlrs vs 1,152,000 dlrs in year. 1986 year net excludes tax credit 919,000 dlrs. Reuter 

QUAKER CHEMICAL CORP <QCHM> SETS QUARTERLY

Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April 30 Record April 17 Reuter 

RAYTHEON <RTN> DIRECTOR RESIGNS

Raytheon Co said D. Brainerd Holmes, who retired as Raytheon president in May 1986, has resigned from the board effective April One. The company said Ferdinand Colloredo-Mansfield, chairman of Cabot, Cabot and Forbes, will succeed Holmes on the board. Reuter 

MIDDLE SOUTH <MSU> TO CONSIDER DIVIDEND

Middle South Utilities Inc will not consider payment of a common stock dividend until there is another ruling on a Mississippi Supreme Court order rolling back rates at the company's Mississippi Power and Light Co subsidiary, chairman Edwin Lupberger said. He told security analysts Middle South was close to recommending resumption of the common stock dividend when the Mississippi court ordered the rate rollback. Following the order, he noted, the unit cancelled a planned sale of preferred stock. Middle South has petitioned the court for a rehearing or a stay of the order while it is being appealed. Reuter 

MONARCH CAPITAL <MON> CALLS PREFERRED

Monarch Capital corp said its board has called its convertible preferred stock for redemption on May Eight. The company said shareholders may exchange the preferred shares for shares of new nonconvertible preferred stock with a dividend of five dlrs to 6.40 dlrs per share, convert them into common stock at a rate of 0.8 common share for each preferred share or allow the preferred to be redeemed for 46.51 dlrs per share. Reuter 

CYANOTECH <CYAN> SETS WAY TO EXTRACT CAROTENE

Cyanotech Corp said it has developed a new way to extract beta carotene from algae. The company said the method reduces energy requirements by 70 pct and produces 90 pct recovery. The company has been a commercial producer of beta carotene since May, 1986. Reuter 

SAS TO UPGRADE CABIN SERVICE IN SCANDINAVIA

Scandinavian Airlines Systems, SAS, said it will improve cabin service for business class passengers on intra-Scandinavian routes starting next week. The company also said it will simplify timetables on routes in Scandinavia, with many flights departing hourly. SAS said it will upgrade meals and between meal refreshments and relegate the sale of tax-free candy and cosmetics to airport shops to give cabin attendants more time to devote to the enhanced service. Reuter 

BELGIUM PLANS TO OUTLAW INSIDER TRADING

A Belgian finance ministry spokesman said new rules planned on insider trading would enable offenders to be fined and imprisoned for up to a year, and be compelled to forfeit gains. The new rules require parliamentary approval, and government sources said it was unclear when they would come into force. Insider trading is currently not an offence in this country. The cabinet approved a separate bill that analysts said includes provisions to make more difficult the build-up of major new stakes in Belgian companies. The bill would make obligatory the declaration of major stakes in companies quoted on the bourse with own resources of more than 200 mln francs. The Minister for Economic Affairs would need to be informed in advance of deals under which foreign interests planned to buy a new stake of more than ten pct of the voting shares in a large Belgian company, or to increase an existing stake to more than 20 pct. REUTER 

OWENS-CORNING FIBERGLAS <OCF> SELLS FOAM UNIT

Owens-Corning Fiberglas Corp said it sold its controlling interest in its French foam insulation producing subsidiary to a Lafarege Corp <LAF> subsidiary. Owens-Corning said it sold its interest in Sentuc Porxpan SA for an undisclosed price. Reuter 

U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS

U.S. TAX FRAUD CHARGES BROUGHT AGAINST THREE

Three men were charged today with operating a large tax fraud scheme that provided more than 500 mln dlrs in phony tax losses for many prominent people, including CBS Inc. <CBS> president Laurence Tisch and his brother Preston, who is President Reagan's postmaster general. The indictment was handed down by a federal grand jury to in New York. The three indicted were named as Charles Atkins, William Hack and Ernest Grunebaum, all well-known promoters of tax shelters. Atkins was well-known as an organizer of tax shelters in the late 1970s and early 1980. The indictment said that between 1978 and 1983, the defendants conspired to defraud the government by arranging "rigged and fraudulent" transactions in governmenmt securities and false tax deductions based on phony trading losses and interest expenses. More than 350 mln dlrs in false deductions were passed on to partners in three tax shelters. In addition, the defendants sold over 200 mln dlrs in phony trading losses and interest expenses to other entities and individuals to be used as tax deductions. The indictment said that over 1.1 billion dlrs in trading losses and interest expenses were generated by the scheme but were off-set by "fictious gains." Laurence Tisch was said by the indictment to have reported a net loss of 1.1 mln dlrs. His brother, Preston Tisch, reported a loss of 480,000 dlrs. None of the three men's clients were charged with any criminal acts. But should the three be found guilty, their clients will be required to pay taxes they originally avoided through the tax shelter scheme, plus interest and possibly penalties. Reuter 

O'BRIEN ENERGY <OBS> IN CITICORP <CCI> LEASE

O'Brien Energy Systems Inc said it has signed a 12-year 12 mln dlr lease with Citicorp covering its wood gasification project in Quincy, Fla. O'Brien said it retains rights to the residual value of the project and may participate in the development of additional electric generating facilities as part of a second phase of the project, which started operating January One. Reuter 

QUAKER CHEMICAL <QCHM> TO REPURCHASE SHARES

Quaker Chemical Corp said its board has authorized the repurchase from time to time of up to 300,000 common shares. Quaker now has about 6.6 mln shares outstanding. Reuter 

TREASURY'S BAKER OUTLINES TRADE BILL CRITICISMS

Treasury Secretary James Baker said that some of the trade bills proposed by Congress conflict significantly with certain basic principles the Reagan administration considers critical. Baker told a Senate committee that the administration would resist such measures as a general import surcharge, sector-specific protection such as import quotas for individual products, mandatory retaliation, and limits on presidential discretion in negotiating more open markets abroad and other trade steps. Reuter 

CASINO COMMISSION DELAYS VOTE ON HOLIDAY <HIA>

The New Jersey Casino Control Commission said it will put off for one week a decision on whether to approve a 2.4 billion dollar recapitalization plan previously announced by Holiday Corp <HIA>. Holiday Corp is the licensee of Harrah's Marina Hotel and Casino in Atlantic City, N.J. A spokeswoman for the commission said the commissioners felt they needed more time to review testimony taken at an all-day meeting Monday. A decision had been expected at the group's regular weekly meeting today but the vote is now due April one. The New Jersey Division of Gaming Enforcement last week completed a review of the Holiday recapitalization plan and listed 10 areas of concern. The enforcement unit, which did not draw conclusions or make recommendations, said the Commission had to decide if the adoption of a leveraged financial structure will leave Holiday in a financially stable condition which is required by the New Jersey Casino control Act. Reuter 

WORTHERN BANKING <WOR> IN AGREEMENT WITH FEDS

Worthern Banking Corp said it entered into a formal written agreement with the Federal Reserve Bank of St. Louis. The corporation said it will submit written plans and reports on a regular basis to the Reserve Bank on several matters, including current and future dividend policy for the corporation and its affiliates. It also will inform the Reserve Bank about retaining an independent management corporation to appoint a chairman of its board, and it will first get approval from the Reserve Bank before it takes on any more debt. In addition, Worthern said it will report on its maintenance of adequate capital at the corporation and its affiliate banks, its strategic business plan for the remainder of 1987 and 1988, and its improvement in the corporation's and certain non-banking affiliates' position with respect to certain assets previously subject to adverse classification. In addition, Worthern will provide the Federal Reserve Ban with quarterly progress reports specifying the actions taken to secure compliance with the agreement together with quarterly balance sheets and income statements. Separately, Worthern said its results of oeperations for the year ended Dec 31, 1986, previously announced Jan 29, 1987, would be revised to reflect additional loan and lease loss reserves and loan charge-offs, resulting in additional losses for that period. Reuter 

U.S. SHOE CORP <USR> 4TH QTR JAN 31 NET

Shr 31 cts vs 56 cts Net 13.7 mln vs 25.2 mln Sales 610.9 mln vs 575.9 mln Avg shrs 45.0 mln vs 44.8 mln Year Shr 57 cts vs 1.46 dlrs Net 25.5 mln vs 64.9 mln Sales 2.00 billion vs 1.92 billion Avg shrs 45.0 mln vs 44.5 mln NOTE: Current year net both periods includes gain five cts shr from sale of Just for Kids! and Giggletree mail order catalogs and charges of 10 cts shr from writedowns of assets related to the closing of linens and domestics stores and leased departments and of leased shoe departments. Year net includes LIFO inventory charges six cts shr vs two cts shr. Reuter 

NUTMEG INDUSTRIES <NUTM> SETS LICENSING PACT

Nutmeg Industries Inc said it signed an agreement in principle with (NBA Properties Inc) to make sportswear bearing the logos of National Basketball Association teams. Under the three-year pact, the company's Nutmeg Mills Inc unit will design, manufacture and sell apparel for men, women and children bearing the colors, names and symbols of the 23 basketball teams in the league. Nutmeg signed similar pacts in February with (Major League Baseball Promotion Corp) and last week with (National Hockey League Service) to make sportswear with the logos of baseball and hockey teams. Reuter 

ARGENTINE SOYBEAN YIELD ESTIMATES DOWN FURTHER

Argentine grain producers again reduced their estimates for the total yield of the 1986/87 soybean crop, which will begin to be harvested in mid-April, trade sources said. They said growers now forecast soybean production this season at between 7.5 and 7.8 mln tonnes, down from last week's estimate of 7.7 to eight mln tonnes and the 8.0 to 8.4 mln tonnes forecast in mid-February. The new forecast is still higher than last season's record total production. Private sources put 1985/86 production at a record 7.2 to 7.3 mln tonnes -- 4.2 to 6.4 pct lower than the new forecast for the current crop. The official figure for 1985/86 is 7.1 mln tonnes, 5.6 to 9.9 pct below this season's new estimates. Growers in the past week discovered more empty soybean pods in the main producing areas of southern Cordoba and Santa Fe provinces and northern Buenos Aires. The crop since January has been hit by high temperatures and inadequate rainfall. Growers fear they may find more empty pods and have to further reduce their forecasts of total yield. The area sown to soybeans this season was a record 3.7 to 3.8 mln hectares, 10.8 to 13.8 pct higher than the 1985/86 record of 3.34 mln hectares. The state of the crop continued to be good in general until last week but intense, heavy rains since could have caused damage in areas where rainfall was higher than 100 mm. Where the rains were less heavy they were considered beneficial although too late to improve yield estimates. The rains also benefitted maize and sorghum crops in southern Buenos Aires province but are not expected to influence production forecasts. In other areas, especially western Buenos Aires, where rainfall was more than 200 mm, parts of the sunflower, maize and sorghum crops not yet harvested may have been damaged. The coarse grain crop harvest was interrupted last week by rains which also reached over 100 mm in parts of Cordoba, La Pampa and Santa Fe and almost 90 mm in parts of Entre Rios. The area sown with maize this season was between 3.58 and 3.78 mln hectares, two to seven pct less than the 3.85 mln hectares in 1985/86. The yield of 1986/87 maize continued to be forecast at between 9.9 and 10.1 mln tonnes. This estimate is 19.8 to 20.2 pct lower than the 12.4 to 12.6 mln tonnes at which private sources put 1985/86 production and 21.1 to 22.7 pct lower than the official 12.8 mln tonnes. The sunflowerseed harvest has covered 23 to 26 pct of the area sown and continues in parts of central Buenos Aires although at a standstill elsewhere due to rain and floods. A resumption of full harvesting and assessment of damage is impossible until rains stop and a spell of a week to 10 days of sunshine dries the fields. The area sown this season was 2.0 to 2.2 mln hectares, down 29.9 to 36.3 pct on last year's record 3.14 mln hectares. Sunflowerseed 1986/87 production is still forecast at 2.3 to 2.6 mln tonnes, 34.1 to 41.5 pct below the 1985/86 record of 4.1 mln tonnes. The grain sorghum harvest was the least affected by the rains, advancing steadily in Santa Fe and Cordoba and starting in La Pampa to cover 14 to 16 pct of the total area sown. The area sown was 1.23 to 1.30 mln hectares, 10.3 to 15.2 pct less than the 1.45 mln hectares the previous season. Yield estimates remained at 3.2 to 3.5 mln tonnes, 16.7 to 22 pct down on 1985/86 production of 4.1 to 4.2 mln tonnes. Reuter 

BETA PHASE <BETA> TO SELL EYEGLASS TECHNOLOGY

Beta Phase said it has agreed to sell its shape-memory eyeglass frame manufacturing technology and equipment to privately-held Universal Optical. The company said Universal Optical will also purchase the existing Beta Phase inventory of raw materials, its work in progress and its manufacturing equipment and tooling. Under the pact, Beta Phase will receive a 20 pct share of CVI/Beta Ventures, a joint venture owned by Beta Group and CooperVision Inc <EYE>, which markets worldwide shape memory eyeglass frames. The venture will then be owned 54 pct by Beta Group, 26 pct by Coopervision and 20 pct by Beta Phase. Reuter 

LYNG SAYS AGRICULTURE SHOULD SHARE SPENDING CUTS

U.S. Agriculture Secretary Richard Lyng said agriculture should share spending cuts under the Gramm-Rudman law and that this would ultimately help exports. "There needs to be some reduction of some expenditures to at least get close to the Gramm-Rudman figure," he said. "Agriculture would not be independent from that." He told a Virginia Farm Bureau lunch, "I don't think anyone believes we'll meet the 108 billion dlr target." Lyng said if the federal deficit came down, this would help exports. "A failure to get the fiscal deficit under control is having a harmful effect on agricultural exports." He added, however, that U.S. agricultural exports had increased under the Farm Security Act but so far had not recovered to what he called the successful levels of 1981. Reuter 

TREASURY'S BAKER SAYS NEW MONEY NOT PANACEA

Treasury Secretary James Baker said that massive new lending to the debtor nations could actually increase their difficulties in the period ahead without protections. In testimony before a Senate committee, Baker said that "throwing money at the debtor nations won't solve their problems." He said it might seem like an easy solution to the debt problems and might appear a simple way to boost U.S. exports and growth in the debtor nations. Baker told the committee that such an approach could "worsen their difficulties unless the new financing can be productively absorbed and is consistent with their ability to grow and service debt." He said that the debt initiative that bears his name is a long-term approach and that further progress "will be gradual and will vary among nations, depending upon their own determination to implement growth-oriented reforms and the continued active support of the international community." Reuter 

VERTEX INDUSTRIES INC <VETX> 2ND QTR JAN 31 NET

Oper shr loss three cts vs loss four cts Oper loss 40,870 vs loss 39,827 Revs 584,855 vs 727,432 Six mths Oper shr loss two cts vs loss two cts Oper loss 24,311 vs loss 26,947 Revs 1,246,992 vs 1,497,251 NOTE: Current periods exclude net gain of 150,865 dlrs from termination of retirement plan for salaried employees. Also excludes gain of 83,100 dlrs from in current qtr and gain 90,400 dlrs in six mths from benefit of tax loss carryforwards. Company went public in September 1986. Reuter 

CYCLOPS <CYL> SAYS DIXONS APPOINTEES RESIGN

Cyclops Corp said the three members of its board appointed last week by <Dixons Group PLC> had resigned and that it named three Cyclops executives to replace them. Cyclops said the moves followed the announcement earlier today by Dixons that it received only 20 pct of Cyclops outstanding common stock under an extended tender offer that expired yesterday. Dixons initially ended its 90.25 dlr a share tender offer on March 17 after receiving 54 pct of Cyclops shares. However, the Securities and Exchange Commission last Friday pressed Dixons to reopen the offer because the U.K.-based company had dropped a condition that at least 80 pct of Cyclops stock be tendered by the close of the offer. Dixons then extended the offer until yesterday and earlier today indicated that a substantial number of tendered Cyclops shares had been withdrawn, leaving it with only 852,000 shares, or just over 20 pct of the roughly 4.26 mln Cyclops shares outstanding. Dixons said today that it purchased the tendered shares, which, when combined with the shares it already holds, gives it a 21.7 pct stake in Cyclops. Cyclops said its reconstituted board includes the three newly named directors and five outside directors, all of whom were on the board prior to Dixons tender offer. The three Cyclops directors were replaced by Dixons appointees on March 17 under an agreement reached between the two companies. Reuter 

ECUADOR NEGOTIATES WITH NIGERIA FOR LENDING OIL

Earthquake-stricken Ecuador is negotiating with Nigeria to have the African country lend it 10,000 barrels per day (bpd) of crude for export, Deputy Energy Minister Fernando Santos Alvite told Reuters. He said Ecuador was negotiating a shipments schedule and the terms of repaying the loan. Ecuador has suspended crude exports for about five months until it repairs a pipeline ruputured by a March five tremor. Santos Alvite added Ecuador is finalizing details for a program under which Venezuela would temporarily lend the country 50,000 bpd for export. Reuter 

COMPUTERVISION <CVN> UNVEILS NEW DESIGN GEAR

Computervision Corp said it introduced additions to its CADDS 4X software line, a new CADDStation workstation and upgrade kits for existing CADDStation workstations. The company said the new software products include Autoboard SMT, priced at 35,000 dlrs, which is a microchip version of its printed circuit board software. The new CADDStation, based on Sun Microsystems Inc's <SUNW> workstation technology, is a 32-bit system, available initially as a server, with a processing capacity of four mips, or million instructions per second. The new CADDStation, Computervision said, is priced at 90,400 dlrs. The company said it is also offering kits to upgrade its 2-mips CADDstation priced at 35,000 dlrs. Reuter 

NORTHERN STATES POWER CO <NSP> VOTES QUARTERLY

Qtly div 47-1/2 cts vs 47-1/2 cts prior qtr Pay 20 April Record 6 April Reuter 

SUMMIT TAX EXEMPT BOND FUND <SUA> SETS PAYOUT

Qtrly div 40 cts vs 40 cts prior Pay Aug 14, 1987 Record April One, 1987 Reuter 

U.S. SENATE TRADE LEADER CONCERNED ABOUT CANADA

The chairman of the U.S. Senate committee with jurisdiction over trade said he was concerned about a resolution on bilateral trade negotiations adopted by the Canadian House of Commons last week. The resolution supports negotiation of a bilateral trading agreement with the United States while protecting Canadian political sovereignty, social programs, agricultural marketing systems, the auto industry and Canada's cultural identity. Senate Finance Committee chairman Lloyd Bentsen said the resolution may jeopardize the viability of the proposed free trade agreement between the two countries, which are each other's largest trading partners. "We need a truly free trade agreement, which means both countries have to work toward a deal that is mutually beneficial and comprehensive, a large agreement," the Texas Democrat said in a statement. "I do not question Canada's right to protect its political sovereignty or cultural identity. However, if these phrases mean the government of Canada means to take important economic issues off the table in these negotiations, I am deeply concerned," he added. Bentsen said Canada restricts trade 15 different ways while the United States uses only six trade restriction methods. He said if Canada proposes an agreement where both countries get rid of six methods of trade restriction, it would not be fair and might not win Senate approval. "I am deeply concerned that when the President visits Prime Minister (Brian) Mulroney next month, he will be presented with this kind of argument, and I hope he makes it clear -- as I did when I was in Canada -- that only a mutually beneficial agreement will be successful," Bentsen said. Reagan and Mulroney are scheduled to meet April 5-6 in Ottawa. Bentsen urged Mulroney to withdraw a proposal that would ban imports of independently produced films into Canada by non-Canadians, which the senator called a protectionist measure. Reuter 

TREASURY'S BAKER SAYS NEW MONEY NOT DEBT PANACEA

Treasury Secretary James Baker said massive new lending to debtor nations could actually increase their difficulties in the period ahead without protections. In testimony before the Senate Committee on Governmental Affairs, Baker said, "throwing money at the debtor nations won't solve their problems." Baker told the committee such an approach could "worsen their difficulties unless the new financing can be productively absorbed and is consistent with their ability to grow and service debt." He said the debt initiative associated with his name is a long-term approach and further progress "will be gradual and will vary among nations, depending upon their own determination to implement growth-oriented reforms and on the continued active support of the international community." Reuter 

BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES

BAKER SAYS U.S. WANTS TO STABILIZE EXCHANGE RATES

Treasury Secretary James Baker said the United States and other nations were willing to cooperate to stabilize foreign exchange rates at the levels that existed at the time of an international agreement last month. "Our position with respect to the dollar goes back to the Paris Agreement that the currencies were within ranges broadly consistent with underlying economic conditions," Baker told a Senate committee. Baker continued, "We said further that we and others are willing to cooperate closely to foster stability in exchange rates around those levels." He referred to a February agreement by six leading industrial nations to cooperate on monetary matters. Baker refused to answer a question whether Japan and Germany had done enough to stimulate their domestic economies for the United States to support the dollar. "I will not comment because the foreign exchange market reads more or less than is intended in my statements," Baker said. Baker said that the other signatories recognized that they must carry their share of the load of correcting external imbalances that have hindered the world's economy. He cited news reports that Germany would increase a proposed tax cut for 1988 by about five billion marks to stimulate domestic growth. Japan also agreed to consider stimulative measures after the Japanese budget was made final. Baker said those nations were stimulating their economies in a manner consistent with gains against inflation. Reuter 

JUSTICE, DOT BACK AIRLINE ANTITRUST SWITCH

Strong competition remains in the airline industry despite a recent wave of mergers, a Transportation Department official said. But Assistant Transportation Secretary Matthew Scocozza said at a Senate antitrust committee hearing he would not object to a transfer of the department's authority over airline mergers to the Justice Department. Scocozza and Deputy Assistant Attorney General Roger Andewelt said both departments felt airlines should be judged under the same antitrust standards as all other industries. The Transportation Department is due to lose its authority in 1989, but subcommittee chairman Howard Metzenbaum wants it shifted now because he feels the Department has approved too many airline mergers. "Airline mergers have proceeded at a breakneck pace with barely a whimper being uttered by the Department of Transportation. Nine airlines control 94 per cent of the market," the Ohio Democrat said. Metzenbaum said he was concerned about the effects the pending U.S.-Air-Piedmont Airlines merger would have on service, especially at Dayton, Ohio, a major Piedmont hub. Scocozza said even with the recent mergers, such as Texas Air Corp's acquisition of Eastern Air Lines and People Express, more airlines were flying now in the United States than before the 1978 airline deregulation act. "Airline deregulation has worked, is working, and, given the department's commitment to preserving a competitive environment, will continue to work," Scocozza said. He said the department considers the effect each merger will have on competition over all the routes involved and will not approve a merger which will reduce competition. Scocozza said most of the recent mergers involved airlines in financial difficulty being taken over by other carriers. Andewelt said he was optimistic competition would increase as airlines expanded airport hubs and routes and believed the industry did not need special treatment under antitrust laws. "It is time to treat the airline industry in precisely the same way as other U.S. industries; any differences are not significant for the purpose of merger analysis," Andewelt said. Reuter 

U.S. GOVERNMENT EXPANDS CRACKDOWN ON BAD DEBTS

The administration is expanding its crackdown on bad debts, officials of the White House Office of Management and Budget (OMB) told reporters. OMB Deputy Director Joseph Wright said the administration this year plans to turn over to private credit rating firms data on about 3.5 mln "deadbeats" who are seriously behind or in default in their payments on federal loans. Next year, the government will turn over to private collection bureaus four billion dlrs in bad education loans and three billion dlrs in other bad government loans, Wright said. The government is also considering letting individuals make payments on their student loans with credit cards, officials told reporters. The Internal Revenue Service is already studying the use of credit cards to pay income taxes, but this usage would require a change in federal law while no congressional action would be needed for credit cards to be used for student loans, the officials said. The officials disclosed these plans in releasing the third annual OMB report to Congress on management of the U.S. government. The report details steps to be taken by the administration to increase federal efficiency and to continue President Reagan's highly publicized "war on waste, fraud and abuse." According to the report, elinquent U.S. debt had soared to 68.3 billion dlrs, or 18.8 pct of total receivables, by the end of the fiscal year that ended last Sept. 30. At the end of fiscal 1981, when Reagan took office, bad debt stood at 29.8 billion dlrs or 12.3 pct of total debt. But OMB officials said other Reagan administration efforts had already saved taxpayers 84 billion dlrs and would save another 25 billion dlrs or so by the time Reagan left office. Reuter 

FIRST FEDERAL DELAWARE AGREEMENT EXTENDED

<First Federal Savings Bank> of Delaware said its agreement to negotiate exclusively for its sale with <Oxford Financial Group> has been extended until April 8 from March 18. The company said it is in the final stages of talks with Oxford over the terms of the proposed acquisition. Under a nonbinding letter of intent signed in June 1986, Oxford would pay 11 dlrs per First Federal share, subject to First Federal shareholder approval. Reuter 

EDELMAN GROUP IN PLAN TO BUY MORSE SHOE <MRS>

A group led by New York investor Asher Edelman said Morse Shoe Inc agreed to provide it confidential company information and that his group would make an offer to buy Morse only in a friendly, negotiated deal. The group also said in a filing with the Securities and Exchange Commission that its members would not, without Morse approval, buy or offer to buy any company securities giving the group a 10 pct or more stake in the company. Edelman and his group said his terms held until the earlier of 90 days from March 3 or the date on which Morse announces a definite agreement for its sale. At the same time, the Edelman group said it cut its stake in Morse to 8.4 pct from 9.7 pct. Reuter 

PHILIP MORRIS' <MO> OSCAR MAYER SETS REDEMPTION

Oscar Mayer and Co Inc, a unit of Philip Morris Cos Inc, said it will redeem all of its outstanding 7.85 pct debentures due January 15, 1996 on April 30, 1987, at 1,014.50 dlrs plus accrued interest for each 1,000 dlrs prinicpal amount. A notice of redemption will be mailed to noteholders March 27, it said. Reuter 

U.S AUTO AGENCY GRANTS FORD <F> AIR BAG REQUEST

The National Highway Transportation Safety Administration said it granted a request by Ford Motor Co to delay for four years until 1994 a requirement that air bags or other passive restraint systems be installed on the passenger side of the front seat of all new autombiles. Under the decision announced today by Transportation Secretary Elizabeth Dole, automakers will be required to meet federal passive restraint requirements only on the driver's side. "The action we are taking today will result in the installation of more air bags, sooner than would have occurred without this rule," Dole said. Under the ruling announced today, 10 pct of model year 1987 cars must have automatic seat belts or air bags on the driver's side. For the 1988 model year, 25 pct must have passive restraints, and for 1989, 40 pct must be so equipped. By the 1990 model year, all new cars must be equipped with passive restraint systems on the driver's side. For the passenger side of the front seat, ordinary seat belts will suffice until 1994 under the new ruling. As previously written, the federal standard required passive restraint systems such as air bags on both the driver's and passenger's side of the front seat in all new cars by 1990. Reuter 

MERCK <MRK> GETS FDA HEARTWORM MEDICINE APPROVAL

Merck and Co Inc said its veterinary drug Heartgard-30 for the prevention of heartworm disease in dogs has been approved by the U.S. Food and Drug Administration. The company said the drug will be availiable only through licensed veterinarians. Reuter 

JOHN LABATT SEES GOOD FOURTH QUARTER, YEAR

<John Labatt Ltd> anticipates a good fourth quarter and a new peak in sales and earnings for the fiscal year ending April 30, president Peter Widdrington told financial analysts. He would not make any specific forecast, but said he was optimistic for further growth in fiscal 1988 in the company's brewing and food products operations. Labatt's earnings rose to 92.8 mln dlrs in the nine months ended January 31 from year-earlier 78 mln dlrs. Revenue for the nine months rose to 3.20 billion dlrs from 2.70 billion dlrs. Widdrington said Labatt's three-year business plan, now being updated, targets total sales of about six billion dlrs, including 2.50 billion dlrs in the U.S. Labatt, Canada's leading brewer, has expanded in the U.S. food products industry by acquisitions. Widdrington said Labatt's strategy for U.S. expansion stemmed partly from its strong market position in the Canadian food and beverage industry. The U.S. share of revenues for this year will be about 35 pct, rising to 40 pct in fiscal 1988, he said. Reuter 

HUSKY <HYO> SETS MEETING TO APPROVE MERGER

Husky Oil Ltd said the board called a special meeting for April 22 for shareholders to vote on its previously announced agreement for Hong Kong-based Hutchison Whampoa Ltd and Hongkong Electric Holdings Ltd to acquire a 43 pct interest in the company. The acquisition requires two-thirds approval by Husky shareholders other than <Nova, An Alberta Corp>, which owns a 57 pct interest in Husky. If approved by shareholders, the amalgamation will take effect April 30, Husky said. Following completion, Oil Term Holdings Ltd, a new company controlled by Nova, will hold a 43 pct stake in Husky. Hutchison and Hongkong will indirectly hold 43 pct, Victor T.K. Li will own nine pct and <Canadian Imperial Bank of Commerce> will have a five pct interest. Husky said a special committee of five outside directors recommended the board approve the transaction after determining that the deal was in the best interests of Husky and fair to shareholders. Husky previously announced shareholders will have the option to receive 11.80 Canadian dlrs cash for each common, or 6.726 dlrs cash and one common share of Oil Term Investment Ltd, which will be controlled by Nova through Oil Term Holdings and own an insterest in Husky. U.S. shareholders will be restricted to the right to receive 11.80 Canadian dlrs cash per share, which will be paid in U.S. funds, the company said. Reuter 

BALTIMORE GAS AND ELECTRIC <BGE> FILES DEBT

Baltimore Gas and Electric Co said it filed a registration with the Securities and Exchange Commission to sell 100 mln dlrs of unsecured debt. The debt filing was registered under the SEC's shelf procedure which gives the utility up to two years to sell its debt. Once the registration becomes effective Baltimore Gas and Electric will be able to issue debt on short notice as market or corporate conditions warrant. Reuter 

MERCK <MRK> GETS APPROVAL FOR DOG HEART DRUG

Merck and Co said a drug to prevent heartworm disease in dogs, ivermectin, has been approved by the U.S. Food and Drug Administration. The drug, made by Merck's animal health and agricultural products division, will be sold under the name Heartgard-30 through licensed veterinarians. Reuter 

WASHINGTON GAS LIGHT CO <WGL> HIKES PAYOUT

Qtly div 45 cts vs 44 cts prior Pay May one Record April 10 Reuter 

ZENITH <ZE> NAMES NEW FINANCIAL OFFICER

Zenith Electronics Corp said Howard Graham has been named vice president-finance and chief financial officer, effective April 1. Reuter 

FERC DECISION COULD CUT COLUMBIA GAS <CG> NET

Columbia Gas System Inc said a Federal Energy Regulatory Commission decision today on natural gas cost recovery could reduce its 1987 earnings by about 1.25 dlrs a share. The company said "this could bring earnings for 1987 below Columbia's stated goal of earning no less than its 3.18 dlrs per share dividend." It earned 2.12 dlrs a share in 1986. It said management expects to recommend to the board that the dividend rate be maintained in 1987. Columbia Gas said the impact of the FERC decision may be offset by a one-time accounting change rleated to future tax liabilities under the new federal tax laws. The company recorded these liabilities based on older, higher tax rates, but an action being considered by the Financial Accounting Standards Board could result in a gain of about 1.20 dlrs a share in 1987, it explained. "Thus there is a good chance that we will attain our 1987 earnings goal -- although not in the way originally planned," Columbia Gas said. Columbia Gas said the FERC decision would limit the recovery of certain gas contract costs by Columbia Gas Transmission Corp, the company's principal pipeline subsidiary. It said the decision specifically excluded from a purchased gas adjustment filing by the pipeline costs related to amortizing payments made to producers to reform gas purchase contracts. These were excluded on the grounds the subsidiary failed to sufficiently support cost recovery. The company said its subsidiary is not precluded from making a new filing to provide sufficient support. Reuter 

U.S. OFFERS MORE CREDITS FOR VEG OIL TO N. YEMEN

The U.S. Commodity Credit Corporation (CCC) has authorized an additional 10.0 mln dlrs in credit guarantees to cover sales of U.S. vegetable oils to North Yemen, the U.S. Agriculture Department said. The department also said at the request of the North Yemen Government five mln dlrs in credit guarantees previously earmarked for sales of wheat have been switched to cover sales of mixed poultry feed. The actions increase the value of credit guarantees for vegetable oil for the current fiscal year to 38 mln dlrs, reduce the guarantee coverage for sales of wheat to eight mln dlrs and increase the coverage for sales of mixed poultry feed to 10 mln dlrs. All exports must be completed by September 30, 1987. Reuter 

PUERTO RICAN CEMENT CO <PRN> SETS PAYOUT

Qtly div five cts vs five cts prior Pay May 13 Record April 14 NOTE: Company said up to 20 pct of dividend payment may be withheld in accordance with Puerto Rico tax law. Reuter 

U.S. SHOE <USR> TO OPEN 421 STORES IN 1987

U.S. Shoe Corp said it plans to open 421 stores and close 33 units in 1987, bringing the total number of its outlets to 2,655. Earlier the large retailer reported that its earnings dropped 61 pct to 25.5 mln dlrs for the year ended January 31. In the year earlier period it earned 64.9 mln dlrs. Sales rose four pct to 2.0 billion dlrs from 1.9 billion dlrs. U.S. Shoe cited severe merchandising problems in its key retail divisions and competition in its footwear divisions as some of the reasons for the earnings decline last year. U.S. Shoe also said it expects results for the first quarter to end May 31 will show an improvement over the 3.2 mln dlrs it earned in the year-ago quarter. It said that initial orders for spring were down "moderately," but reorder activity was "excellent" within its women's footwear divisions. The company said it "will continue to search for ways to make its footwear assets more productive and operations more efficient." It said it expects capital outlays in fiscal 1987 to exceed 165 mln dlrs, a 12 pct increase over 1986 levels. It said capital outlays to improve domestic productivity this year are planned to increase 50 pct over 1986 levels. The company also said it plans to increase its presence in Brazil and to start production in Hong Kong, which along with other overseas offices, will strenghten its overall import capability. Reuter 

BARRIS <BRRS> TO BUY BACK STOCK

Barris Industries Inc said it agreed to buy back 763,546 shares, or 8.6 pct of its own common stock from company founder Charles Barris for 12.50 dlrs per share. Barris and the company have also terminated an agreement which granted Barris Industries the right of first refusal for a five year period on any project initiated by Barris, the company said. Reuter 

CANADA MAY MONITOR STEEL SHIPMENTS

Canada may begin monitoring steel flowing in and out of the country to determine if any steel is being illegally "trans-shipped" to the U.S., senior government trade officials said. The officials, asking not to be identified, said the government will investigate an industry contention that steel imported from countries such as South Korea and Taiwan is being diverted to the U.S. and ultimately exasperating concerns about the level of Canadian exports south of the border. But the senior officials, asking not to be indentified, said that despite intense pressure from the Reagan Administration, Ottawa was not considering any kind of formal limits on Canadian shipments to the U.S. "In a sense what I hope we are doing is buying some time," said one official who claimed Canadian companies were "fair traders" in the big American market. If approved by the Canadian cabinet, the officials said a monitoring system will be established in the next three or four months. "I guess if we find trans-shipment is a problem, we would have to do something about it," said a trade official. Canadian steel shipments to the U.S. have risen to 5.7 pct of the U.S. market in recent months, almost double the level just two years ago. The increase in Canadian shipments comes at a time of growing anger in the U.S. over rising steel imports from several countries in the face of a decline among domestic steel producers. Some U.S. lawmakers have proposed Canada's share of the American market be limited to 2.4 per cent. The Ontario Government has urged Ottawa to require foreign companies to obtain permits to import steel into the country. Currently, import licences are required only for carbon or raw steel, which makes up less than half the steel market. Canada exported two billion Canadian dlrs worth of steel in 1986, while importing 944-mln dlrs worth of the product in the same year. Reuter 

MEXICO SIGNS 100 MLN DLR IADB TOURISM LOAN

Mexican officials, led by Finance Minister Gustavo Petricioli, signed a 100 mln dlr loan with the Inter-American Development Bank to help finance the promotion of foreign tourism. The loan is for 15 years with 4-1/2 years grace at a variable interest rate. The IADB has approved previous loans totaling 207.5 mln dlrs to help finance investments of some 580 mln dlrs in Mexico's tourism sector. The total cost of the program announced today is about 334 mln dlrs, of which the IADB loan will cover 29.9 pct. Reuter 

WESCO FINANCIAL CORP <WSC> 4TH QTR NET

Shr 79 cts vs 5.05 dlrs Net 5,628,000 vs 35,936,000 Revs 41.8 mln vs 39.4 mln Year Shr 2.32 dlrs vs 7.24 dlrs Net 16,524,000 vs 51,541,000 Revs 160.2 mln vs 114.9 mln Note: Current qtr figures include securities gain of 2.1 mln dlrs, or 29 cts per share, vs gain of 34.3 mln dlrs, or 4.81 dlrs per share. Current year figures include security gain of 4.6 mln dlrs, or 64 cts per share, vs gain of 41.5 mln dlrs, or 5.83 dlrs per share. Reuter 

HELM <H> SELLS ADDITIONAL SHARES IN BAMBERGER

Helm Resources Inc said that, pursuant to the exercise of an overallotment option by underwriters in Bamberger Polymers INc's initial public offering, it has sold another 35,000 Bamberger shares and reduced its ownership in Bamberger to 51 pct from 55 pct. To date, Helm has sold 435,000 Bamberger's for 3.5 mln dlrs. Bamberger has sold a total of 600,000 shares and received net proceeds of about 4.8 mln dlrs since the February 1987 offering. Reuter 

AMPAL-AMERICAN ISRAEL CORP <AIS.A> YEAR NET

Shr 27 cts vs 25 cts Net 6,416,000 vs 5,988,000 Revs 112.2 mln vs 99.8 mln NOTE: 1985 includes extraordinary income of 647,000 dlrs or three cts/shr. 1985 restated. Reuter 

COCOA COUNCIL CHAIRMAN SEEKS BUFFER COMPROMISE

International Cocoa Organization, ICCO, Council chairman, Denis Bra Kanon, said he will attempt to reach a compromise on buffer stock rules for the International Cocoa Agreement. Bra Kanon called for bilateral consultations among producers and consumers Thursday morning to resolve outstanding differences on how much non-member cocoa the buffer stock can purchase and differentials to be fixed for different origin cocoa, consumer delegates told reporters. Bra Kanon is expected to meet with about eight delegations individually in attempt to iron out remaining problems. Producers and consumers indicated support "in principle" for the draft buffer stock rules package formulated over the past week by a small working group, consumer delegates said. Despite remaining differences delegates remained confident a buffer stock accord would be agreed to by Friday when the council session ends, but certain technical points need further clarification, the delegates said. Certain consumers are concerned that differentials included in the draft buffer stock package are out of line with market realities, consumer delegates said. Unless these are modified there are fears it would promote purchases of quality cocoas, such as Ghana origin, which are normally required by manufacturers, they said. Restrictions on buffer stock purchases of non-member cocoa might lead to a supply overhang in Malaysian cocoa, which would depress prices, they added. Reuter 

SNC GROUP EXPECTS HIGHER 1987 EARNINGS, SALES

<SNC Group Inc> expects 1987 earnings to rise to 1.20-1.40 dlrs a share from 91 cts a share last year, with revenues climbing to about 430 mln dlrs from last year's 350 mln dlrs, president Alex Taylor said before the annual meeting. SNC, Canada's second biggest engineering and construction group, became the country's largest ammunition manufacturer last year with its 90 mln dlr acquisition of Canadian Arsenals Ltd from the Canadian government. The impact of that and several smaller deals will be felt fully in 1987, Taylor said. Defense preoducts and other manufacturing operations will account for more than half SNC's total 1987 revenues, helping to counterbalance the more cyclical engineering and construction acivities, Taylor said. Last year, SNC earned 8.7 mln dlrs, including a small extraordinary gain. In 1987, a total manufacturing activities will generate about 235 mln dlrs in revenues, and engineering and construction about 200 mln dlrs, he said, adding that defense products operations should be a major contributor to earnings. Reuter 

MINE SAFETY <MNES> SELLS SOUTH AFRICA UNIT

Mine Safety Appliances Co said it will sell through its German subsidiary, Auergesellschaft, its controlling interest in MSA (Africa), (PTY) Ltd, of Johannesburg, South Africa to Boart International, a wholly- owned subsidiary of Anglo American Corp of South Africa Ltd <ANGL>. The company said the terms of the sale were not disclosed. The company will operate as Boart-MSA (PTY) Ltd, it said. L.N. Short Jr, president of the company, said it sold the unit because of slumping profits due to South Africa's economic decline. Reuter 

MEDAR INC <MDXR> 4TH QTR DEC 31 LOSS

Shr loss 10 cts vs loss nine cts Net loss 558,800 vs loss 469,200 Sales 5.5 mln vs two mln Nine mths ended Dec 31 Shr profit two cts vs loss four cts Net profit 91,045 vs loss 207,000 Sales 17.3 mln vs 8.4 mln Avg shrs 5,465,433 vs 5,037,819 Year ended March 31 Shr loss 28 cts vs profit 19 cts Net loss 1,356,321 vs profit 818,723 Sales 10.9 mln vs 12.2 mln Avg shrs 4,862,499 vs 4,683,591 Note: Medar changed end of fiscal year to December 31 to be more in phase with business cycle of its major customers. Reuter 

MEDAR <MDXR> CHANGES FISCAL YEAR

Medar Inc said it changed the end of its fiscal year to December 31 from March 31. The company, in reporting its annual results, said the change was made to bring its financial reporting in phase with the order cycle of its major customers. Medar earlier said it lost 558,800 dlrs in its final 1986 quarter, compared to a loss of 469,200 dlrs in the same 1985 quarter. Reuter 

EPSILON DATA <EPSI> GETS NEW CREDIT AGREEMENT

Epsilon Data Management Inc said it had executed a new revolving credit and term loan agreement with the Shawmut Bank N.A. It said the total credit available under the newly-signed agreement is six mln dlrs. It said the new agreement will, at its option, convert to a four-year term loan in September 1988. Reuter 

U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING

CHEMFIX TECHNOLOGIES INC <CFIX> 2ND QTR NET

Ended Feb 28 Shr profit one ct vs loss four cts Net profit 53,040 vs loss 255,568 Revs 2,252,246 vs 755,605 Six mths Shr profit three cts vs loss eight cts Net profit 217,884 vs loss 517,538 Revs 4,895,720 vs 1,569,662 Reuter 

ALABAMA UPGRADED IN BRUCELLOSIS PROGRAM

Alabama has advanced from a Class B to a Class A rating in the eradication of cattle brucellosis program, thus relieving some restrictions in the interstate movement of cattle from the state, the U.S. Agriculture Department said. To qualify for a Class A rating, a state must keep its herd infection rate at or below 0.25 pct for 12 months. The change in Alabama's classification reduces the testing and identification requirements for cattle moved interstate for breeding purposes, to immediate slaughter or to quarantined feedlots, USDA said. Brucellosis is an infectious bacterial disease that causes abortion, reduced fertility and lower milk yields in cattle, it noted. Reuter 

HELM <H> AFFILIATE SELLS SYSTEM

Teletrak Advanced Technology Systems Inc, 35 pct-owned by Helm Resources Inc, said it received a contract to provide its Laser Base 400 System to a national commercial bank. The system is an optical disk storage and retrieval system that utilizes commercially accepted computer hardware, it said. Teletrak also said a New York law firm has retained it to develop the laser base software for the firm's word processing system. Reuter 

FEDERAL PAPER <FBO> OFFERS PREFERENTIAL SHARES

Federal Paper Board Co Inc said its is offering 2,800,000 shares, or 140 mln dlrs, of its 2.875 cumulative convertible preferred stock at 50 dlrs per share. The company said it is applying to list the preferred stock on the New York Stock Exchange. The First Boston Corp, Morgan Stanley and Co Inc and PaineWebber Inc are underwriting the issues, the company said. The preferred stock has a liquidation preference of 50 dlrs per share and is convertible at any time into common stock at 55 dlrs per share subject to adjustment. The preferred stock is redeemable starting at 52.875 dlrs per share on March 15, 1987, and declining on each March 15 to 50 dlrs on and after March 15, 1997. The company said it intends to used the proceeds from the sale to redeem its entire 125 mln dlrs of its outstanding 13 pct subordinated debentures due 2000, with the balance to be added to the company's general funds. Reuter 

ALLIS-CHALMERS <AH> SELLS SWISS UNIT

Allis-Chalmers Corp said it has sold its Elex Ag unit in Zurich, Switzerland, to private investors for an undisclosed amount. The company said Elex produces electrostatic precipitators used in air pollution control. Reuter 

MONARCH CAPITAL <MON PR> WILL NOT RESUME TRADING

The New York Stock Exchange said Monarch Capital Corp Pfd will not resume trading today. Reuter 

FLORIDA EMPLOYERS INSURANCE CO <FLAE> YEAR 1986

Shr 29 cts vs nine cts Net 651,000 vs 214,000 NOTE: 1986 net includes loss of 500,000 dlrs for extraordinary item. Reuter 

SHELL OIL GETS 104.3 MLN DLR CONTRACT

Shell Oil Co of Houston has been awarded a 104.3 mln dlr contract for jet fuel, the Defense Logistics Agency said. REUTER 

U.S. 4-YEAR NOTE AVERAGE YIELD 6.79 PCT, STOP 6.79 PCT, AWARDED AT HIGH YIELD 95 PCT

DETROIT EDISON FILES SHELF REGISTRATION FOR ONE BILLION DLRS IN BONDS

NIKE INC <NIKE> 3RD QTR FEB 28 NET

Shr 12 cts vs 30 cts Net 4,255,000 vs 11.5 mln Revs 199.4 mln vs 258.7 mln Nine mths Shr 64 cts vs 1.19 dlrs Net 24.4 mln vs 45.5 mln Revs 639.7 mln vs 824.3 mln Reuter 

ZENITH NATIONAL INSURANCE <ZNAT> QTLY DIVIDEND

Shr 20 cts vs 20 cts prior qtr Pay May 14 Record April 30 Note: Full name Zenith National Insurance Corp. Reuter 

REDKIN LABORATORIES INC <RDKN> QTLY DIVIDEND

Shr five cts vs five cts prior qtr Pay April 17 Record April 3. Reuter 

INT'L MINERALS <IGL> PLANS BIOTECHNOLOGY PROJECT

International Minerals and Chemical Corp said its board approved a 50-mln-dlr budget to be spent over the next several years to build production facilities for a newly developed product to be used to improve the lean weight of hogs. The new product, porcine somatotropin (PST) is described as a natural bio-synthetic protein that improves the lean weight and rate of weight gain, as well as reduces the cost of feed for market hogs, the company said. Specific details of the PST production project, including sites for the proposed facilities and engineering plans, were not disclosed. International Minerals said it set a completion target for the spring of 1989, by which time necessary Food and Drug Administration approvals are expected to be obtained. Reuter 

COOPERVISION INC <EYE> QTLY DIVIDEND

Shr 10 cts vs 10 cts prior qtr Pay April 17 Record April 9. Reuter 

UAL <UAL> SURROUNDED BY TAKEOVER SPECULATION

UAL Inc's diversification into hotels and rental cars may be its downfall, analysts said. Digesting its acquisitions of hotels, Pan Am Corp's Pacific air routes, and Hertz rental cars, combined with stiff air fare competition has left the company with an undervalued stock price, analysts said. The vulnerability of UAL's stock has fueled takeover speculation, as have reports that real estate magnate Donald Trump has bought a large amount of its stock. Today, a UAL executive told Reuters its chairman Richard Ferris spoke with Trump last week. Trump said his interest in the stock was as an investment, but the executive said the company does not know how much Trump owns or whether he has any other plans. UAL senior vice president Kurt Stocker said the company believes its diversification strategy will work since it can feed customers from one business to another. Several weeks ago, it announced the new name of Allegis, to be taken in May. "The strategy that Dick Ferris was talking about a couple weeks ago when we announced the Allegis name is that the whole really ends up to be worth more than the sum of the parts. Unfortunately, some people haven't really come to this understanding," Stocker said. But those same parts - Westin Hotels, Hertz rental cars, United Airlines and its reservation system - also has Wall Street calculating a wide range of breakup values from about 100 dlrs per share to 130 dlrs per share. Analysts aren't so sure the strategy is going to work. They mention Transworld Corp, initially Trans World Airlines, as an example of an airline diversification gone wrong. Transworld Corp ended up spinning off its TWA airline. Transworld, now TW Services, is selling Hilton International to UAL. "If you want to be negatively biased you say it's a stupid philosophy, and if you're United and you put billions of dlrs into other acquisitions, this is a good idea. There's not much evidence one way or the other," said Dean Witter analyst Mark Daugherty. "In the short or long run, they all (UAL's businesses) make money and perform well," said Stocker. He said the stock price hasn't caught on since the strategy is relatively new. Analysts say it's because earnings are relatively poor. Earnings last year were 25 cts per share. Louis Marckesano of Janney Montgomery predicts 1987 net of 3.50 dlrs per share. "They're potential is enormous. I think their problem has been execution. The strike was the single biggest factor that set them back in 1985. Last year, the whole industry was involved in fare wars. They were hit harder by the fare wars than anyone else," said Marckesano. Marckesano said United Airlines was particularly hurt by the fare wars because it shares a Denver hub with Texas Air Corp's price-slashing Continental Airlines. Analysts said the same strategy which has contributed to an undervalued stock price may also result in a strong takeover defense. They said UAL paid a lot for some of its assets and that in itself may make the company undesireable. "I think they have a fairly tough management that will at least be able to do battle with a potential shark and may well be able to defeat them. These guys aren't pushovers," said Steve Lewins, an airline analyst at Citicorp. Lewins believes the company could ultimately boost the stock price to a level that would reflect its assets, but it will take time and improvements in earnings. "If they put their nose to the grindstone, we're talking about years for anyone (in the airline industry)," he said. "The whole unwinding of the battle of Texas Air is going to take years, establishing the Pacific in competition with (NWA Inc <NWA>) Northwest is going to take until 1990," Lewins said. UAL today rose 2-1/2 to 62-1/2 on heavy volume of 1.9 mln shares. Reuter 

U.S. SECURITIES GROUP BACKS INSIDER RESTRAINTS

The Securities Industry Association backed a variety of restraints on insider trading and hostile corporate takeovers and asked Congress to define insider trading in law. The industry trade association called on U.S. securities firms to take steps to protect sensitive corporate secrets to guard against illegal trading by employees. The association also backed broad federal restrictions on a variety of tactics used in hostile corporate takeovers. But it said investment banking firms should be allowed to continue to engage in both arbitrage and merger and acquisition activities so long as those functions were kept separate. The SIA, in a report adopted yesterday by its board of directors, backed a higher enforcement budget for the federal Securities and Exchange Commission and called on U.S. stock exchanges to beef up their supervision of member brokerages. The report said securities firms "should be more rigorous in restricting sensitive information on a need-to-know basis." It said firms should train their employees to understand the need for confidentiality of market-sensitive information. It said legislation to define insider trading should avoid expanding current law in a way that would impede the market. It said an insider trading definition should exempt a securities firm from liability for law violations by its employees unless the firm had participated in or was aware of the wrongdoing. In the mergers and acquisitions area, the association advocated a ban on greenmail payments or poison pill takeover protection plans without prior shareholder approval. It said a group or individual buying up a company's stock should be required to file a public disclosure statement before acquiring more than five pct of the company's shares. Under current law, disclosure may be made as late as ten days after exceeding the five pct limit. The association said all purchases exceeding 20 pct of a company's voting stock shouls be made only through a tender offer open to all shareholders. Under current law there is no limit on open market purchases. The group said the federal government should preempt state regulation of defensive takeover tactics. The group said all tender offers should remain open for at least 30 calendar days. The current requirement is expressed in business days. It said so-called "lockup" devices, in which securities are issued to a friendly investor to seal a takeover deal or fend off an unfriendly predator should be limited to 18.5 pct of the target company's total common stock. Association president Edward O'Brien said the group acted out of concern over the ad hoc restructuring of corporate America on Wall Street and investor fears about insider trading and fairness in the marketplace. Reuter 

TEXACO <TX> RESERVES DOWN DESPITE LOWER OUTPUT

Texaco Inc's oil and gas reserves declined in 1986 despite reduced production and upward revisions in the company's previous reserve estimates, its annual report said. The statement of the report's auditor was qualified -- as was the previous one -- because of the unkonwn final impact of the judgement won by Pennzoil Co <PZL> against Texaco on charges Texaco interfered with Pannzoil's contract to acquire Getty Oil Co. The auditor's point out, as Texaco has in the past, the company's loss of any of several pending court decisions in this case could cause it "to face prospects such as having to seek protection of its assets and business pursuant to the bankruptcy and reorganization provisions of Chapter 11" of the federal bankruptcy code. Commenting on a Texas Court of Appeals ruling which reduced Pennzoil's judgement by two billion dlrs, to 9.1 billion dlrs, Texaco said it will file a motion for a rehearing by the appeals court no later than March 30. Texaco said the proven crude oil reserves of the company and its consolidated subsidiaries totaled 2.54 billion barrels at the end of 1986, down from 2.69 billion a year earlier. However, inclusion of Texaco's equity in the Eastern Hemisphere reserves of a nonsubsidiary company limited the decline to 2.91 billion barrels from 3.00 billion at the end of 1985. Worldwide production by the consolidated subsidiaries declined to 341 mln barrels last year from 362 mln in 1985 and upward revisions in previous reserve estimates rose to 143 mln barrels from 117 mln, respectively. Texaco said the largest drop in reserves came in the United States -- where the total dropped to 1.46 billion barrels from 1.55 billion. The company said U.S. liquids production averaged 660,000 barrels per day last year, down from 714,000 in 1985, with about 44 pct of the decline -- some 24,000 barrels per day -- representing high-cost production shut-in or curtailed in response to the decline in crude oil prices during 1986. Texaco said its natural gas reserves totaled 8.16 trillion cubic feet at year end, down from 8.87 trillion cubic feet at the end of 1985. Reuter 

SIX REPORTED WOUNDED IN ECUADOR GENERAL STRIKE

At least six persons, including three soldiers, were reported wounded at the start of a general strike in Ecuador called to press the government to suspend an earthquake-related austerity programme. The information ministry said workers had partially complied with the strike. Witnesses said bus transport ground to a halt in Quito and schools were closed throughout the country, but banks and shops remained open. Three soldiers on a military truck were burned by a gasoline bomb, information minister Marco Lara told reuters. In the central city of Latacunga, three workers were wounded in clashes with police, unionists and hospital authorities said. The strike was called for one day but could be extended. Reuter 

INT'L MINERALS PROJECT TO BOOST HOG LEAN WEIGHT

International Minerals and Chemical Corp said its board approved a 50 mln dlrs budget over the next several years to build production facilities for a newly developed product to be used to improve the lean weight of hogs. The new product, porcine somatotropin (PST) is described as a natural bio-synthetic protein that improves the lean weight and rate of weight gain, as well as reduces the cost of feed for market hogs, the company said. Specific details of the PST production project, including sites for proposed facilities and engineering plans, were not disclosed. International Minerals said it set a completion target for the spring of 1989, by which time necessary Food and Drug Administration approvals are expected to be obtained. Reuter 

LOMAC TO PAY 17 MLN DLRS TO CLEAN SITE IN FIRST SUPERFUND-2 SETTLEMENT

PULITZER PUBLISHING CO <PLTZC> DECLARES QTLY DIV

Qtly div 10 cts vs 10 cts prior Pay May 1 Record April 10 Reuter 

FEDERAL CO <FFF> SETS REGULAR PAYOUT

Qtly 29-1/2 cts vs 29-1/2 cts prior Payable June 1 Record May 1. Reuter 

TRANSCANADA PIPE <TRP> SETS SHARE REDEMPTION

TransCanada PipeLines Ltd said it will redeem all 1.6 mln outstanding cumulative redeemable retractable first preferred shares, series F on May 1, 1987 at a price of 52 dlrs a share, or a total of 83.2 mln dlrs. The regular quarterly dividend of 1.795 dlrs a share payable May 1, 1987 to shareholders of record March 31, will be mailed separately from the notice of redemption, the company said. Reuter 

SOUTHWESTERN BELL <SBC> SEES EARNINGS DILUTION

Southwestern Bell Corp said that its planned acquisitions of cellular telephone and paging systems, including those of <Metromedia Inc>, will result in some initial earnings dilution and an increase in debt ratio. In a letter to shareholders in its 1986 annual report, the regional Bell company did not indicate the degree of earnings dilution it expects from the acquisitions, which total some 1.38 billion dlrs. However, the company said the rise in its debt ratio will be temporary and will leave its debt level within an acceptable range. In its 1986 yearend financial statement, Southwestern Bell listed a debt-to-equity ratio of 43.4 pct, down slightly from 43.7 pct in 1985. In 1986, the company earned 1.02 billion dlrs, or 10.26 dlrs a share, compared with 996.2 mln dlrs, or 10 dlrs a share in 1985. Revenues dipped to 7.90 billion dlrs from 7.93 billion dlrs. Southwestern Bell said it expects the new tax law to have a negative impact on its cash flow, due mainly to the loss of investment tax credits. By mid-year, however, the company said a reduced corporate tax rate should have a positive impact on its net income and cash flow. In addition, the company said it is projecting a 1.7 pct gain in customer telephone lines and a three to four pct increase in long distance calling volumes. Southwestern Bell said 1987 capital expenditures will be lower that the 1.97 billion dlrs spent in 1986, a year in which expenditures were held below budget. Reuter 

BOLIVIAN DEBT BUYBACK PLAN SAID GAINING GROUND

Bolivia's proposal to repurchase at a deep discount the 900 mln dlrs it owes to foreign commercial banks is likely to be accepted, bolivian central bank governor Javier Nogales Iturri said. Speaking to reporters at the annual meeting of the Inter- American Development Bank, Nogales said Bolivia's bank advisory committee, led by Bank of America, is seeking permission from creditor banks worldwide to go ahead with the scheme. More than 50 pct of the banks must approve, and Nogales said he is confident this threshold will be reached. "It's working out very well, and I think we'll get a clear majority," Nogales said. A senior banker working on the deal also said that banks are responding positively and said all the legal waivers necessary could be obtained within two months. Bolivia halted all payments on its commercial bank debt in March 1984. Hyperinfltion has been curbed and public spending trimmed, but the country's debt still trades as low as 10 cts on the dollar on the secondary market, and many banks have written off most, if not all, of their loans to the country. Few bankers see little chance for a subtantive recovery in Bolivia's economic fortunes and so are willing to collect what they can on the loans. Nogales said Bolivia would offer to buy back the debt at a market price. He said some banks might want to hold out for a higher price, but others would see the repurchase offer as an opportunity to cut their losses. Bolivia intends to pay for the repurchase with aid that foreign goernments, especially the United States and West Germany, are providing to help finance the eradication of coca crops. Cocaine, although illegal, is Bolivia's largest export. The campaign to persuade farmers to grow legal crops instead of coca would be financed instead using local currency, Nogales said. Because the fiscal deficit has been reduced to some four pct of gross domestic product, money supply could be increased to pay for the drug-eradication drive without too much of n impact on inflation, he added. Nogales said he does not expect Bolivia's debt repurchase to become a model for other debtors in dire straits. "We're not seeking a universal solution," he said." Reuter 

BRAZIL WANTS TO INCREASE STEEL EXPORTS TO U.S.

Brazil wants to increase its steel exports to the United States, now limited because of tough import restraints set in 1984 by the Reagan administration, a spokeswoman for the Brazilian Steel Institute (IBS) said. Brazilian and U.S. Trade officials held the first of a three-day meeting today in Brasilia to discuss the issue. In 1984, after three months of painstaking negotiations, the U.S. Government reached accords with seven steel-exporting nations - Australia, Brazil, Japan, Mexico, Spain, South Africa and South Korea - to reduce their shipments to the United States by about 30 pct in 1985. The 1984 restraints established that for 1987 Brazil's steel exports to the U.S. Could not exceed 632,000 tonnes, increasing to 640,000 tonnes in 1988 and 670,000 tonnes in 1989, the last of the five-year deadline set by the agreements. Brazilian officials are trying to increase Brazil's export share of non-flat products to the U.S. Market. The spokeswoman said there were reports of domestic supply problems in the United States. Reuter 

XYLOGICS IN INITIAL PUBLIC OFFERING

Xylogics Inc is making an initial public offering of 1,089,300 shares of common stock at 16 dlrs a share, co-managing underwriters Salomon Brothers Inc and Cowen and Co said. Of the shares being offered, 750,000 are being sold by the company and the rest by selling shareholders. The company has granted the underwriters an over-allotment to buy up to 150,000 more shares. Proceeds to the company will be used to acquire automated manufacturing, testing and engineering equipment, to finance facilities expansion, for working capital and general corporate purposes. The company makes controllers that manage data flow between computers and peripherals. Reuter 

DETROIT EDISON <DTE> REGISTERS BONDS

Detroit Edison Co said it filed a shelf registration for the proposed offering of one billion dlrs in general and refunding mortgage bonds. The offering will be underwritten by Morgan Stanley and Co Inc. Detroit Edison said the bonds will be offered to the public this year and next, with the first bond sale scheduled for early next month. Net proceeds from the sale will be used to refund obligations under the company's Belle River Project financing and to refund or replace funds utilized by the company for the purpose of meeting debt and equity obligations. Reuter 

S/P DOWNGRADES DANA CORP'S 900 MLN DLRS OF DEBT

ANCHOR SAVINGS BANK OFFERING FULLY SUBSCRIBED

Anchor Savings Bank said its subscription offering was fully subscribed, precluding an underwritten public offering of Anchor stock. The company, which will be traded on Nasdaq under the symbol <ABKR>, said final tabulation has not been completed. The offering was made in connection with Anchor's conversion from a federally chartered mutual savings bank to a federally chartered stock savings bank, it said. The bank offered 15.3 mln shares of common stock at 8.50 dlrs to 11.50 dlrs a share, with the possible issuance of up to an additional 2,295,000 shares, it said. The company said trading in the bank stock will not commence until all regulatory requirements have been completed. Anchor said it had total assets of 7.3 billion dlrs as of June 30, 1986. It said shares were offered to bank depositors, borrowers and through a direct mail campaign. Reuter 

LEAR SIEGLER HOLDING CORP PLANS TO DIVEST AEROSPACE SUBSIDIARY

VARITY CORP YEAR SHR LOSS 21 CTS VS LOSS 16 CTS

NORDSON <NDSN> SETS 3-FOR-2 SPLIT

Nordson Corp said its board declared a 3-for-2 stock split to be paid as a 50 pct stock dividend on April 30 to shareholders of record April 10. As a result, the number of shares outstanding will increase to 10.2 mln from 6.8 mln, the maker of industrial equipment said. Reuter 

BALDRIGE SEES U.S. TRADE DEFICIT STARTING TO DECLINE IN FEB OR MARCH DATA