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GULF ESCORTS STILL UNDER DISCUSSION - WEINBERGER
No action has been taken yet on the Reagan Adminstration's offer to escort Kuwaiti oil tankers through the Gulf, but the issue is being discussed, U.S. Secretary of Defence Caspar Weinberger said. The offer was made to Kuwait in light of Iran's deployment of Chinese-built missiles to cover the entrance to the Gulf. Weinberger told reporters prior to a speech at Texas Christian University that he did not think Iran and the United States were moving towards a potential conflict, adding that the Straits of Hormuz at the mouth of the Gulf were still "free water." REUTER 
AUSTRIA TREASURY NOTE ISSUE LIKELY TO BE INCREASED
A floating rate treasury note issue by the Republic of Austria is likely to be raised to 2.5 billion schillings from two billion due to heavy demand, lead manager Oesterreichische Laenderbank AG <OLBV.VI> said. Laenderbank managing board member Herbert Cordt told Reuters that demand had been strong throughout Europe. The issue, carrying interest of 1/8th of a point over the three-month Vienna Interbank Offered Rate, is the second of its kind. The first was made last October 23. The issue, made at par, has an initial three-year life and the borrower has the right to make extensions up to 1997. REUTER 
NEW CAPITAL RULES WOULD FAVOR FIRST INTERSTATE
First Interstate Bancorp <I> would benefit from new banking capital adequacy rules proposed by the Federal Reserve Board, Chairman Joseph Pinola said. "We are one of the few banks that would have an improved position," Pinola said in an interview, noting First Interstate has fewer off balance sheet liabilities than many other banks. Under the proposed rules, a bank's minimum capital requirement would be determined by the assessed risk of their assets, including off balance sheet liabilities that are not currently taken into account. Currently, banks must retain a primary capital ratio of 5.5 pct. First Interstate reported a primary capital ratio of 6.14 pct at the end of 1986. Pinola said First Interstate has since raised that ratio, however, to about 6.70 pct, through a recent preferred stock offering and a 200-mln-dlr subordinated capital note offering announced yesterday. First Interstate reported a relatively average return on assets ratio of 0.68 at the end of 1986. Pinola said First Interstate's return on assets ratio will improve to the 0.70-0.71 range at the end of the first quarter, because 1986 year-end assets, at 55.4 billion dlrs, were overestimated by about two billion dlrs. He said he is anxious to improve the return on assets ratio further, but continued loan losses at First Interstate's Rocky Mountain state banks continue to hold down profits. Pinola said its banks in other states are showing excellent return on asset ratios, with its Arizona and Washington banks running at about 1.30, its Oregon bank showing 1.00 and its California bank at about 0.83. Reuter 
FIRST INTERSTATE <I> ESTIMATES LOSS ON BRAZIL
First Interstate Bancorp Chairman Joseph Pinola said the bank holding company would lose about 16 mln dlrs per year, after taxes, if it had to put its medium and long-term debt on non-accrual status. In an interview, he said that could result in about a 4.5 pct decline in annual earnings per share. Pinola said First Interstate, like other banks, has not yet decided to put the loans, which Brazil stopped paying interest on last month, on non-accrual status. "None of us really wants to injure negotiations that might be going on," he said. First Interstate reported to the Securities and Exchange Commission last week that it has about 339 mln dlrs in medium-to long-term loans to Brazil. It said on December 31, 1986 its nonperformind Brazilian outstanding debt totaled about 4.1 mln dlrs. First Interstate also has about 168 mln dlrs in short-term loans or trade lines to Brazil. Pinola said he believes the solution to the Brazilian debt crisis will be more political than economic, which he said he finds, "very disquieting and discomforting." Reuter 
FRENCH UNEMPLOYMENT RISES TO SEASONALLY ADJUSTED 2.65 MLN IN FEBRUARY - OFFICIAL
CONRAIL INITIAL OFFER PRICED AT 28 DLRS SHARE
Lead underwriter <Goldman, Sachs and Co> said an initial public offering of 58,750,000 shares of <Consolidated Rail Corp> common stock has been priced at 28.00 dlrs per share. The sale is the largest initial public offering ever. All of the shares are being sold by the U.S. government. They represent an 85 pct interest in Conrail, the large northeastern freight-carrying railroad. Employees of Conrail retain the other 15 pct. The shares will be traded on the New York Stock Exchange under the ticker symbol <CRR> starting this morning. Initially, underwriters had said in proxy materials that the shares were expected to be priced at 22 to 26 dlrs per share. But last week they raised the expected range to 26 to 29 dlrs per share. Conrail was formed during the 1970's from Penn Central Railroad and other financially-distressed northeastern rail carriers. The offering will raise about 1.65 billion dlrs before underwriting fees. Previously, the largest initial public offering in dollar terms had been Henley Group Inc's <HENG> 1.3 billion dlr spinoff from Allied Corp <ALD> last year. Other lead underwriters are First Boston Inc <FBC>, Merrill Lynch and Co Inc <MER>, Salomon Inc <SB> and American Express Co's <AXP> Shearson Lehman Brothers Inc. Fifty-two mln shares are being sold in the U.S. through a syndicate of 148 underwriters and 6,750,000 overseas through a 27-member syndicate. Reuter 
MICKELBERRY CORP <MBC> 4TH QTR NET
Shr profit 61 cts vs loss 45 cts Net profit 3,568,000 vs loss 2,598,000 Revs 34.6 mln vs 31.6 mln Avg shrs 5,861,000 vs 5,776,000 Year Shr profit 56 cts vs loss 32 cts Net profit 3,374,000 vs loss 1,759,000 Revs 132.0 mln vs 131.6 mln NOTE: 1985 quarter net includes 665,000 dlr tax credit. Reuter 
HOLIDAY <HIA> SEES RULING NEXT WEEK ON PLAN
Holiday Corp said the New Jersey Casino Control Commission will rule April One on the company's request for approval to proceed with its plan of recapitalization. The Commission ruling is the final regulatory approval needed. The company said talks are proceeding smoothly with its banks, and it plans to finalize the financing for the recapitalization shortly. It said assuming Commission approval, it plans to pay the 65 dlr per share dividend associated with the plan in April, with the exact timing depending on the closing of the financing. Reuter 
MICKELBERRY <MBC> COMPLETES SALE OF UNIT
Mickelberry Corp said it has completed the previously-announced sale of the 51 pct of its C and W Group subsidiary that it had retained to N W Ayer Inc for undisclosed terms. Ayer bought the other 49 pct next year. Mickelberry said it will report a gain on the transaction. Reuter 
FLUOROCARBON CO <FCBN> 4TH QTR JAN 31 NET
Shr 26 cts vs 24 cts Net 1,144,000 vs 1,063,000 Sales 23.2 mln vs 24.8 mln Year Shr 93 cts vs 1.40 dlrs Net 4,046,000 vs 6,111,000 Sales 97.8 mln vs 104.0 mln NOTE: Prior year net includes gain 286,000 dlrs from discontinued operations in year and loss 375,000 in quarter and gain 260,000 dlrs in year from disposal of discontinued. Reuter 
ROSTENKOWSKI SAYS REAGAN MUST RECONSIDER TAX RISE
Chairman Dan Rostenkowski of the tax-writing House Ways and Means Committee said today President Reagan must reconsider his consistent opposition to any tax increases. The Illinois Democrat, asked on a television interview (on NBC-Today) about the possibility of tax hikes, said, "I think the president is going to have to reconsider." He added, "I just hope there's enough vision in this administration to recognize that our deficits are intolerable and the only way we're going to do it is by raising revenues." Reuter 
FRENCH FEBRUARY UNEMPLOYMENT HITS RECORD 2.65 MLN
French unemployment rose to a record seasonally adjusted 2.65 mln in February from 2.61 mln in January and 2.57 mln at the end of last year, the Labour Ministry said. The rise took the percentage of the workforce out of a job to 11.0 pct last month from 10.9 pct in January and 10.7 pct at the end of 1986. In unadjusted terms unemployment fell by around 30,000 last month to 2.70 mln. REUTER 
TREASURY'S BAKER OPPOSES STOCK TRANSACTION TAX
Treasury Secretary James Baker said he opposed a stock transactions tax proposed by House Speaker Jim Wright, D-Tex, or other special taxes. "The stock transfer tax would be a particularly unfortunate approach to take," Baker said in an interview with Cable News Network. The United States has some of the most efficient capital markets in the world and new taxes would impair efficiency, he said. Reuter 
PHILIPS ELECTRICAL SELLS STAKE IN UNIDARE
<Philips Electrical (Ireland) Ltd> has arranged the sale of the one mln ordinary shares it holds in its subsidiary <Unidare Aluminium Ltd>, Unidare said. The placing has been arranged through <Allied Irish Investment Bank Plc> at an ex-dividend price of 371 Irish pence per share. REUTER 
AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS
BAKER SEES 15 TO 20 BILLION DLR DROP IN TRADE GAP
Treasury Secretary James Baker said he expected the U.S. Trade deficit to fall by 15 billion to 20 billion dlrs in 1987. Commenting on the deficit during an interview on Cable News Network, Baker said "I think you're going to see a 15 to 20 billion dlr reduction this year." The deficit was 170 billion dlrs in 1986. Baker noted that the benefits of a weaker currency take 12 to 18 months to affect the trade balance, and said it is now 18 months since the Plaza agreement to lower the dollar's value. Reuter 
NEW GENERATION FOODS <NGEN> SELLS SHARES
New Generation Foods Inc said 17 warrant holders have exercised 1,032,384 warrants, acquiring 2,064,768 New Generation shares for 1,032,384 dlrs. The company said president Jerome S. Flum and Flum Partners, which he controls, acquired 307,138 and 940,680 shares respectively through the exercise of the warrants. It said it also issued another 44,268 common shares on the exercise of 132,812 warrants in a separate non-cash exchange. New Generation now has about 161,000 warrants still outstanding. New Generation also said it has retained Howard Saltzman, Flum Partners limited partner, to serve as a consultant for one year. It said Saltzer will work closely with Flum and play a major role in the day-to-day management of New Generation. Reuter 
AMERICAN MEDICAL INTERNATIONAL INC <AMI> NET
2nd qtr Shr profit 32 cts vs loss 95 cts Net profit 28.0 mln vs loss 82.2 mln Revs 950.2 mln vs 862.0 mln 1st half Shr profit 65 cts vs loss 62 cts Net profit 56.6 mln vs loss 53.5 mln Revs 1.88 billion vs 1.67 billion Avg shrs 92.2 mln vs 86.7 mln NOTE: Period ended February 28. Prior year net both periods includes pretax asset writedowns of 114.6 mln dlrs and additions to reserves of 60.0 mln dlrs. Prior year net includes tax credits of 53.7 mln dlrs in quarter and 32.9 mln dlrs in half. Reuter 
SIEMENS U.S. TURNOVER TO RISE IN CURRENT YEAR
Siemens AG <SIEG.F> turnover in the United States will rise to about 2.6 billion dlrs in the current year to end September from 2.2 billion in 1985/86, management board chairman Karlheinz Kaske said. He told the annual meeting 80 pct of last year's sales came from products made in the U.S.. He added Siemens was as interested as U.S. Authorities in reducing the massive trade deficit and calming down trade relations. "But we would show no understanding if this (trade deficit reduction) was attempted through means incompatible with the principle of free world trade," Kaske said. Siemens has been the subject of pressure by U.S. Telecommunications authorities to limit its access to the U.S. Market for digital telephone switching equipment. The Federal Communications Commission announced in December it was starting an enquiry into the blocking of free access to the telecommunications market by foreign firms, with officers saying reciprocal access was not available to U.S. Firms abroad. For years Siemens was the only supplier of public switching stations to the Bundespost, the German federal post office. Regulatory authorities in 1982 opened Bundespost contracts to tenders from other domestic and foreign suppliers. But foreign authorities have complained that too many restrictions to overseas suppliers still remain. Kaske said neither Siemens nor the Bundespost could be held responsible for the U.S. Trade deficit and noted the U.S. Was still achieving substantial surpluses in trade with West Germany in the electrical and telecommunications sector. The Bundespost is far more open to supplies from abroad than telephone companies in the U.S. Japan or France, he added. Reuter 
F.W. DODGE REPORTS FEBRUARY CONSTRUCTION DROPS
F.W. Dodge, a division of Mcgraw-Hill Inc <MPH>, said that contracting for new construction fell four pct in February to an annualized rate of 227.6 billion dlrs. Construction fell three pct in January, Dodge said. Dodge reported that nonresidential building declined four pct to an annualized rate of 74.5 billion dlrs, residential building rose five pct to an annualized rate of 121.6 billion dlrs and nonbuilding construction declined 27 pct to an annualized rate of 31.5 billion dlrs. For the year to date, Dodge reported 1987's unadjusted total of contracting for new construction fell four pct to 30.4 billion dlrs. Nonresidential building declined seven pct to an unadjusted 10.5 billion dlrs, residential building rose two pct to an unadjusted 14.9 billion dlrs and nonbuilding construction declined 11 pct to an unadjusted 5.0 billion dlrs. Reuter 
U.K. VISIBLE TRADE DEFICIT NARROWS IN FEBRUARY
Britain's visible trade deficit narrowed to a seasonally adjusted provisional 224 mln stg in February from 527 mln in January, The Trade and Industry Department said. The current account balance of payments in February showed a seasonally adjusted provisional surplus of 376 mln stg compared with a surplus of 73 mln in January. Invisibles in February were put provisionally at a 600 mln surplus, the same as in January. Seasonally adjusted, imports rose in February to 7.16 billion stg from 6.73 billion in January. Exports rose to a record 6.93 billion last month from 6.20 billion in January. Trade Department officials said the improvement in Britain's current account contrasted with most private forecasts and they attributed much of the strength to imports rising less quickly in February than might otherwise have been expected. The Department said exceptionally cold weather in January reduced exports that month and that there had been an element of catching up in the February figures. The seasonally adjusted volume index, base 1980, a guide to underlying non-oil trade, showed exports rising to 131.0 from 114.6 in January and imports rising to 142.2 from 136.5. The value of British oil exports in February rose to 751 mln stg from 723 mln in Jnauary while oil imports rose to 425 mln from 352 mln. Reuter 
FRENCH RESERVES FALL ON DEBT REPAYMENT
French reserves fell in the week ended March 19 following repayment of the bulk of the debt contracted during January with the European Monetary Cooperation Fund, the Bank of France said in its weekly statement. The repayment of capital and interest on this loan, taken out during the strong pressure on the franc which preceded the European Monetary System (EMS) realignment and the subsequent Group of Five meeting in Paris, took place on March 13. It comprised the repayment of 11.25 billion francs' worth of European Currency Units (ECUs), 9.72 billion francs' worth of foreign currency and 1.72 billion francs' worth of special drawing rights (SDRs), the Bank said. As a result foreign currency reserves fell to 114.69 billion francs on March 19 from 120.82 billion on March 12, while ECU reserves fell to 62.02 billion francs from 73.23 billion. Gold reserves remained stable at 218.32 billion francs. REUTER 
FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC
German March cost of living 0.2 pct below year ago (Feb 0.5 pct below) - official
<TRIZEC CORP LTD> 1ST QTR JAN 31 NET
Shr 12 cts vs 10 cts Net 19.6 mln vs 17.6 mln Revs 276 mln vs 170.4 mln Avg shrs 85.3 mln vs 84.8 mln NOTE: Company owns 65 pct of <Bramalea Ltd>. Reuter 
BRANIFF <BAIR> MAY GET MEXICAN SERVICE AUTHORITY
Braniff Inc said a U.S. Department of Transportation administrative law judge has recommended that a certificate be granted authorizing Braniff to operate air service for five years on a temporary and experimental basis between Dallas/Fort Worth and San Antonio, Texas, and Mexico City and Acapulco, Mexico. The company said the recommendation must still be approved by Transportation Secretary Elizabeth Dole and President Reagan. Braniff has been operating the routes under exemption authority granted by the Transportation Department in October. Reuter 
BOSTON EDISON CO <BSE> REGULAR DIVIDEND
Qtly div 44.5 cts vs 44.5 cts in prior qtr Payable May one Record April 10 Reuter 
NIPPON SIGNAL ISSUES 50 MLN SWISS FRANC NOTES
Nippon Signal Co Ltd is issuing 50 mln Swiss franc of five year notes with warrants, paying an indicated 1-3/8 pct, lead manager Morgan Stanley said. Terms will be fixed on April 2 with payment due April 22. The notes are guaranteed by Fuji Bank Ltd. REUTER 
GERMAN COST OF LIVING FALLS IN MARCH ON YEAR-AGO
The cost of living in West Germany was provisionally unchanged in March compared with February but fell 0.2 pct against March 1986, the Federal Statistics Office said. In February the cost of living rose 0.1 pct from January but fell 0.5 pct compared with February 1986. The office said final figures for March will be released in about 10 days. REUTER 
BRITISH BANKS RESIST SIGNING MEXICO PACKAGE, SEEK MORE EQUITABLE CONTRIBUTIONS - LLOYDS
TURKEY COULD APPLY FOR EC MEMBERSHIP BY EARLY MAY
Turkey's European Affairs Minister Ali Bozer will arrive here on Saturday to set a date for his country's long-planned application to join the European Community (EC), expected by early May, diplomats said. The Turkish embassy here said an application was expected "very soon" but gave no date. But sources close to the embassy said the application for full EC membership would probably be made in April, or at the latest, by the first week of May. Bozer, is due to meet Turkish Prime Minister Turgut Ozal in London today to decide on the date of the application, they added. REUTER 
BRITISH BANKS SEEK MORE EQUITABLE CONTRIBUTIONS ON MEXICO PACKAGE - LLOYDS
FOOTE MINERAL <FTE> TO MERGE INTO RIO TINTO
Foote Mineral Co said it has signed a letter of intent to merge into <Rio Tinto-Zinc Corp PLC> for cash. The company said at the time of the acquisition, its assets will include only lithium and ferrosilicon operations. Foote, which is 83 pct owned by Newmont Mining Corp <NEM>, has signed a letter of intent to sell its Cambridge operations and said it is in talks on the sale of its manganese operations with several companies. Foote said Newmont has informally indicated it would vote in favor of the Rio Tinto proposal. Foote said terms of the agreement, including price for the proposed cash transaction, have not been released because they are subject to a continuing due diligence investigation. The company said a definitive merger agreement is expected to be negotiated within six weeks and shareholders are expected to vote on the deal at a meeting expected to be held in June or July. Reuter 
U.S. FIRST TIME JOBLESS CLAIMS ROSE IN WEEK
New applications for unemployment insurance benefits rose to a seasonally adjusted 341,000 in the week ended March 14 from 340,000 in the prior week, the Labor Department said. The number of people actually receiving benefits under regular state programs totaled 2,454,000 in the week ended March 7, the latest period for which that figure was available. That was up from 2,507,000 the previous week. Reuter 
BRITISH BANKS RESIST SIGNING MEXICO PACKAGE
British banks are resisting signing a 76 billion dlr rescheduling package for Mexico in a last ditch effort to get all participants to contribute equally to a new 7.7 billion dlr loan contained in the package. Christopher Brougham, regional manager, rescheduling unit, at Lloyds Bank Plc, said in response to a Reuter enquiry, that the six major U.K. Clearing banks last week sent a telex to Citibank saying they would contribute what was requested provided all other major lenders did the same and that the U.S. Banks contribute at least 90 pct of the amount required by them. Other bankers, who declined to be identified, said other groups of banks particularly those in Switzerland, France and Canada, were equally reluctant to sign, although they had not sent any telex to Citibank, which chairs Mexico's 13-bank advisory group. However, they said it was likely that if and when the British banks sign the accord, the others are likely to follow. Under the agreement, for which the signing began on Friday, commercial banks are being asked to contribute 12.9 pct of their exposure to Mexico as of August 1982. That was the date of the first Mexican debt crisis. After months of haggling, a proposed rescheduling agreement for Mexico was struck last September during the annual meeting of the World Bank and International Monetary Fund in Washington. Ever since then the advisory group, of which Lloyds is a member, has been attempting to round up the needed signatories. However, there has been considerable resistance to the package, partly because of some of the clauses it contains and partly because many small U.S. Regional banks do not want to increase their exposure to any Latin American countries. Brougham said, "We (British banks) have always played along for Mexico and will do so as long as others share equally." The decision to send the telexes was agreed on by the six clearers jointly, but each sent its own telex. In addition to Lloyds, telexes were sent by National Westminster Bank Plc, Barclays Bank Plc, Midland Bank Plc, tandard Chartered Bank Plc and Royal Bank of Scotland Plc. Brougham noted that so far the U.S. Banks have only reached 83-1/2 pct of the total that is expected from them, while the level of contributions from the U.K. Banks is well in excess of 90 pct. "The U.S. Figure should be closer to ours," he said. Many bankers have been angered by the resistance of the regional U.S. Banks, noting that even if they don't contribute to the new loan they still will be receiving interest on the existing loans. The banks still have three weeks to sign the agreement and bankers are hoping all will go according to plan. In the meantime, bankers expect further pressure will be exercised on the regional banks and the major U.S. Banks to find a solution to the problem. Many have suggested that the larger U.S. Banks should take on the additional obligations, but so far they have resisted this. Bankers expect that much of the pressure on the U.S. Banks will come from U.S. Regulators, notably the Federal Reserve. Bankers prefer to view the stance taken by the British banks and other national groups as "a matter of principal, and burden sharing" rather than as a "pressure tactic" to force the U.S. Banks to make up their share. The bankers are not the only ones to be upset by the protracted negotiations surrounding the agreement. The Mexicans themselves have been angered by the delays. At the signing in New York last Friday, Finance Minister Gustavo Petricioli sounded a warning to the recalcitrant banks. "Those who supported us today can be sure that Mexico will continue to be open and willing to share with them the business opportunities which its future growth will create," Petricioli said. Conversion of bank debt into equity investments in Mexico is one option banks can take advantage of to reduce their exposure. But Mexico halted its debt for equity program in February in an effort to concentrate on finalising the package. On Friday, Petricioli said "We will be a lot more expeditious in processing the requests of banks that have supported us." The pressure on the U.S. Banks comes at a time when other major Latin American debtors are in the process of crucial debt negotiations. Brazil, the third world's largest debtor, has suspended all interest payments on its 109 billion dlrs of foreign debt. Many of the major U.S. Banks, including Citibank, have already said they might have to put their Brazil loans on a cash basis and take the financial losses, which could total billions of dollars. This would be required by U.S. Banking regulations if the interest payments are more than 90 days overdue. However, the U.S. Banks are not the only ones threatened by regulations. In the U.K., A proposed Inland Revenue ruling would affect the tax treatment of certain types of loans, many of which are made to Latin American countries. Basically, the ruling wants to limit the tax credit a bank can claim for tax withheld by foreign governments on loan interest payments. The British banks are planning to fight the proposals as their implementation could prove extremely costly, not just in terms of compliance but in limiting future business. REUTER 
HONG KONG FEBRUARY TRADE SWINGS INTO DEFICIT
Hong Kong recorded a 3.51 billion H.K. Dlr deficit in February after a 2.54 billion dlr surplus in January as imports climbed and exports slid, the Census and Statistics Department said. The deficit compared with a deficit of 1.76 billion dlrs in February 1986. Imports rose to 24.12 billion dlrs, up 2.6 pct from January's 23.52 billion dlrs and 42 pct above the 16.98 billion dlrs recorded in February 1986. Total exports for the month fell 20.9 pct to 20.61 billion dlrs from 26.06 billion in January. February exports were still 35.4 pct above the 15.22 billion dlrs recorded in the same month last year. Re-exports, the territory's traditional entrepot trade, outpaced domestically produced exports for the first time since March 1985. Re-exports fell 11.6 pct to 10.62 billion dlrs from 12.0 billion dlrs in January but were 54 pct above February 1986's 6.88 billion dlrs. Domestic exports slid 28.9 pct to 9.99 billion dlrs from January's 14.05 billion dlrs but were up 19.7 pct over the 8.35 billion dlrs recorded in February 1986. REUTER 
BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS
GENERALE HEAD CALLS FOR BELGIAN BANK FLEXIBILITY
Belgian banks will need greater flexibility to choose their sphere of operations by 1992, when the European Community is due to introduce free competition in banking throughout the bloc, Generale de Banque SA <GENB.BR> president Eric de Villegas de Clercamp told a news conference. He said at present Belgian and Italian banks were the most restricted in the EC. While German banks were free to hold stakes in commercial companies in which they invested capital, Belgian banks could do so only in severely limited circumstances for short periods. "The authorities concerned should introduce within a reasonable period major modifications toward greater freedom and flexibility if we want to retain competitiveness with the neighbouring countries," de Villegas said. He said the EC authorities envisaged that after 1992 financial institutions would be able to start operations throughout the EC. Since the control of each institution would remain in the hands of the authorities in its country of origin, rules applied in member states could distort competition unless they were harmonised. REUTER 
BEST PRODUCTS CO <BES> 4TH QTR JAN 31 NET
Shr profit 1.44 dlrs vs profit 83 cts Net profit 39.0 mln vs profit 22.5 mln Sales 816.1 mln vs 865.3 mln Year Shr loss 95 cts vs profit eight cts Net loss 25.6 mln vs profit 2,223,000 Sales 2,142,118 vs 2,234,768 NOTE: Current year net both periods includes prtax provisions for restructuring operations of 4,868,000 dlrs in quarter and 38.1 mln dlrs in year. Latest year net includes 1,825,000 dlr tax credit and 2,600,000 dlr posttax loss from debt extinguishment. Reuter 
K MART <KM> TO SUPPLY HOME SHOPPING NETWORK
K mart Corp said it signed an agreement to supply merchandise for Entertainment Marketing Inc's <EM> home shopping subsidiary, Consumer Discount Network. K mart, through its Ultra Buying Network, will begin supplying non-electronic goods to Consumer Discount Network as of April 1. It said Entertainment Marketing and K mart agreed to share in the profits. In addition, K mart will receive warrants to buy two mln shares of Entertainment Marketing's common stock. Reuter 
BANK OF SPAIN PROVIDES YEAR RECORD ASSISTANCE FUNDS
The Bank of Spain provided 1,145 billion pesetas in assistance funds which bankers said reflected fears of fresh increases in overnight rates. The daily auction was the biggest of the year and comes after the previous record set last June 6 of 1,240 billion pesetas. A spokesman for one of Spain top five banks said higher overnight call money rates were expected in the short term in view of disappointing money supply figures for February. The M-4 money supply, measured as liquid assets in public hands, rose 16.7 pct last month against 8.1 pct in January and compared with this year's eight pct target. Money supply growth was 11.4 pct last year. The central bank on Tuesday raised overnight rates by a quarter of a percentage point to 14 pct on demand for 746 billion pesetas. Rates stood at 12.1 pct at the start of the year and have been increased to drain liquidity on rising demand for funds. "The policy is proving counter-productive and rates will have to come down in the long-term," the bank spokesman said in reply to Reuters enquiries. He said higher rates were fuelling an influx of short-term speculative capital from abroad. "At least 800 mln dlrs of current excess liquidity in the system is convertible pesetas from West Germany and other countries with much lower rates," he said. REUTER 
GREAT WESTERN <GWF> TO REDEEM DEBENTURES
Great Western Financial Corp said it has called for redeemption a 150 mln dlr issue of 8.5 pct convertible subordinate debentures due 2010 on May 15. The company said each 1,000 dlrs principal amount of the debentures will be redeemed at 1,068 dlrs plus 7.08 dlrs of accrude interest. It said each 1,000 dlrs principal amount of the debentures is convertible into about 30.075 common shares at the conversion price of 33.25 dlrs a share. The stock closed at 53-3/4 yesterday. Reuter 
CHINA, PORTUGAL INITIAL MACAO PACT
China and Portugal today initialled a joint declaration under which the 400-year-old colony of Macao will be handed over to Peking on December 20, 1999, the official New China News Agency reported. Portuguese Prime Minister Anibal Cavaco Silve said in Lisbon yesterday that China had promised that Macao's existing political, economic and social system will be maintained until the year 2050. Macao, across the Pearl River estuary from Hong Kong, has a population of about 400,000. Reuter 
ETHYL CORP <EY> UNITS COMPLETE ACQUISITON
Ethyl Corp said its subsidiaries completed the acquisiton of Nelson Research and Development Co <NELR>. The merger was approved following completion on Jan 27 of a tender offer valued at approximately 55 mln dlrs, the company said. It added that Nelson, based in Irvine, Calif., will be operated as a wholly-owned subsidiary of Ethyl. Nelson designs and develops new drugs, Ethyl said. Reuter 
JEFFERIES IS MAKING A MARKET IN STANDARD <SRD>
Jefferies and Co Inc said it is making a market in Standard Oil Co at 73 bid offerred at 75 -- has been trading stock at 74. Reuter 
COLONIAL <CABK> TALKS WITH DISSIDENTS BREAK DOWN
Colonial American Bankshares Corp said it met with the dissident shareholder group Colonial American Shareholders Committee to consider a settlement to their dispute that would give the group representation on the Colonial board, but the talks broke down. The company said it does not want a proxy contest, but if the committee presents nominees for election as directors at the April 27 annual meeting, Colonial will take "all appropriate steps" to win. The company said "There was disagreement on several issues, including a demand by the committee for reimbursement by the corporation of approximately 275,000 dlrs in exepnses incurred by the committee. The board felt it was inappropriate to reimburse the committee for any of its expenses." The group owns under 15 pct of Colonial stock. Colonial has nominated a slate of four directors for election at the annual meeting. Reuter 
BRITISH POLITICIANS URGE JAPAN TRADE SANCTIONS
One hundred members of Britain's ruling Conservative Party have signed a motion calling for trade sanctions against Japan to force Tokyo to open its domestic market to British goods. The government announced last week that Japan had a 5.9 billion dlr trade surplus with Britain in 1986. The Department of Trade and Industry said the government was drawing up contingency plans to force Japan into opening up its domestic markets but a spokesman said such moves were very much a last resort. Ideas being considered included blocking Japanese companies from trading in Britain and revoking licenses of Japanese operations in the London financial district. Reuter 
U.K. TRADE FIGURES BUOY HOPES OF INTEREST RATE CUT
The release of U.K. February trade data showing that the current account surplus was a provisional 376 mln stg, up from a 73 mln surplus in January, has boosted hopes of an early cut in interest rates, analysts said. Market forecasts had been for a worse outcome, with expectations of a deficit in visible trade averaging about 750 mln stg, against the official figure of 224 mln stg, sharply narrower than January's 527 mln deficit. "The figures are unreservedly good," Chase Manhattan Securities economist Andrew Wroblewski said. Sterling rebounded on the trade figures, reversing a weaker morning trend, to stand at 72.1 pct of its trade weighted index against a basket of currencies at midday, unchanged from yesterday's close but 0.3 points above the 1100 GMT level. The market had feared that a deteriorating non-oil trade pattern would undermine international support for sterling, which has been the motor behind the recent fall in U.K. Interest rates. Money market sources said the market had begun to doubt that a widely expected drop in bank base lending rates to 9.5 pct from the present 10.0 pct was really on the cards. But sentiment now looks to have turned about again. There now looks to be no danger that the Chancellor of the Exchequer Nigel Lawson's forecast of a 1987 current account deficit of 2.5 billion stg will be exceeded, said Wroblewski. Seasonally adjusted figures showed that imports rose in February to 7.16 billion stg from 6.73 billion in January. Exports rose to a record 6.93 billion from 6.20 billion. However, Chris Tinker, U.K. Analyst at brokers Phillips and Drew said that the faster rise in exports than imports would prove partly aberrational in coming months. He forecast the Chancellor's Budget tax cuts would increase consumer expediture on imported goods. However, Ian Harwood, economist at Warburg Securities, said his firm was sharply revising its 1987 current account deficit forecast in the light of the latest data, cutting one billion stg off the expected full year total to about 1.75 billion stg. He said news of strong growth in exports of non-oil goods confirmed recent bullish surveys among members of the Confederation of British Industry. The growth in imports appears to be flattening, even if January's bad weather had curbed consumer spending on overseas goods and import-intensive stock building among manufactureres, Harwood said. U.K. Government bonds, or gilts, surged by more than 1/2 point on the better-than-expected news, as earlier worries about the figures evaporated. Sterling peaked at a high of 1.6075 dlrs, before settling to a steady 1.6050 dlrs about 1300 GMT, nearly a cent higher than the European low of 1.5960. However, analysts noted that the turnabout in market sentiment still looks highly vulnerable to political news. Morning weakness in sterling and the gilt market was largely attributed to a newspaper opinion poll showing that the Conservative government's support was slipping. The Marplan poll, published in "Today," showed Conservative support had fallen to 36 pct, from 38 pct last month, while the Alliance of Liberals and Social Democrats had rallied to 31 pct, from 21 pct, to run neck and neck with the Labour Party, whose own support fell from 38 pct. The poll was taken after the Budget, which was greeted enthusiastically by financial markets but seems to have left the voters indifferent, political observers said. Another regular poll is due tomorrow, and eonomists warn that today's improved sentiment could be dented if support for Prime Minister Margaret Thatcher slips again. This upsetting of the markets' political perceptions, which are all but discounting a Conservative victory in the upcoming general election, made them more sensitive to the trade data, Harwood said. "The news did come as a very, very substantial relief," he said. However, on the interest rate front, economists caution that Lawson might be wary of leaving sterling vulnerable by encouraging another base rate fall. They noted Lawson had already got an inflation-reducing cut in mortgage rates in response to lower base rates, so domestic political reasons for lower rates have been curtailed. REUTER 
S. KOREA MAY BUY U.S. OIL TO AID TRADE BALANCE
South Korea is studying a plan to buy more coal from the United States and to start importing Alaskan crude oil to help reduce its huge trade surplus with the United States, Energy Ministry officials said today. They said the plan would dominate discussions at two-day energy talks between officials of the two countries in Washington from April 1. Huh Sun-yong, who will attend the talks with three other Seoul government officials, told Reuters that Seoul was "positively considering buying a certain amount of Alaskan oil beginning this year as part of our government's overall plan to reduce a widening trade gap between the two countries." Huh said however that South Korean refineries considered the Alaskan oil economically uncompetitive. Reuter 
BP <BP> TO HOLD NEW YORK PRESS CONFERENCE
British Petroleum Co PLC said it has scheduled a New York press conference for 1300 EST/1800 gmt today at which senior management will discuss the company's proposed acquisition of the 45 pct of Standard Oil Co <SRD> that it does not already own for 70 dlrs per share. The offer is worth about 7.4 billion dlrs. Reuter 
U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS
TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES
GERMAN ANALYSTS SEE GOLD FIRMING LATER THIS YEAR
The price of gold bullion is likely to rise in the second half of the year on increased private investor demand, West German analysts said. Gold could rise as high as 500 dlrs per ounce later this year, said Peter Witte, director of Westdeutsche Landesbank Girozentrale's trading division, after a presentation by the U.S. Mint to promote its gold and silver Eagle series coins. "A lot will depend on oil prices and developments on stock exchanges," Witte said, adding he saw gold positioned for further rises once it breaks out above 450 dlrs. Gold was fixed this morning in London at 411.30 dlrs. Despite current strong interest in gold mine stocks, many investors still want to buy physical gold, Witte said. Interest in gold mine stocks may also wane if stock exchange rallies under way in many countries start to waver. Hermann Strohmeyer, vice president of Commerzbank AG's foreign exchange trading and treasury department, said gold is poised to rise to 460 to 470 dlrs an ounce in the second half of this year. The price is unlikely to fall much below 380 or 390 dlrs an ounce, and probably will continue in a range between 380 and 430 dlrs in the first half of this year, he said. Reuter 
ESSEX CHEMICAL <ESX> SELLS CONVERTIBLE DEBT
Essex Chemical Corp is raising 60 mln dlrs via an offering of convertible subordinated debentures due 2012 with a six pct coupon and par pricing, said lead manager Thomson McKinnon Securities Inc. The debentures are convertible into the company's common stock at 40 dlrs per share, representing a premium of 23.6 pct over the stock price when terms on the debt were set. Non-callable for two years, the issue is rated B-1 by Moody's Investors Service Inc and B by Standard and Poor's Corp. PaineWebber Inc co-managed the deal. Reuter 
U.K. MONEY MARKET RECEIVES 226 MLN STG ASSISTANCE
The Bank of England said it operated in the money market this afternoon, buying 226 mln stg in bills. In band one, the central bank bought 37 mln stg treasury bills and 72 mln stg bank bills at 9-7/8 pct together with 117 mln stg band two bank bills at 9-13/16 pct. This brings total money market help so far today to 241 mln stg and compares with the Bank's revised estimate of a 350 mln stg shortfall. REUTER 
SWEDEN REVISES BUDGET FORECASTS
Sweden's state-run Institute of Economic Research released its forecast of economic indicators during 1987 upon which revisions to the state budget, due to be put forward at the end of next month, will be based. The institute predicted an increase in exports by 2.2 pct to 277.72 billion crowns, with imports up 2.9 pct on 1986 to 247.51 billion. The balance of payments current account, which showed a 1986 surplus of 7.6 billion crowns, will be reduced to a surplus of no more than 1.5 billion, according to the institute. The state-run institute's forecast will be used as a basis for revisions which the Finance Ministry is due to make to the state budget, which was published in January. REUTER 
BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL
MCO <MCO>, MAXXAM <MXM> HOLDERS APPROVE MERGER
MCO Holdings Inc said its shareholders and those of MAXXAM Group Inc have approved the proposed merger of the two companies. MCO said one MAXXAM shareholder has filed an objection to the proposed settlement of shareholder actions related to the merger in the Delaware Court of Chancery. A hearing on the settlement proposal is scheduled for March 27... The merger is subject to court approval of the settlement as well as to other conditions. Reuter 
CANADA DETAILS TWO BOND AUCTIONS
The finance department said it will sell 500 mln dlrs of three-year 3-1/2 month bonds to primary distributors in a previously announced auction March 31. It said another 400 mln dlrs of seven-year 3 month bonds will be auctioned April 1. Reuter 
PRICE CO <PCLB> 2ND QTR MARCH 15 NET
Shr 34 cts vs 29 cts Net 16.7 mln vs 13.3 mln Sales 678.7 mln vs 531.0 mln Avg shrs 48.9 mln vs 45.8 mln 1st half Shr 81 cts vs 69 cts Net 39.5 mln vs 31.7 mln Sales 1.71 billion vs 1.35 billion Avg shrs 48.9 mln vs 45.8 mln NOTE: Twelve and 28-week periods. Reuter 
CAROLIAN SYSTEMS SEES LOWER FISCAL 1987 PROFIT
<Carolian Systems International Inc> said it anticipates profit for fiscal 1987 ending June 30 will be lower than fiscal 1986 earnings of 410,000 dlrs, despite an expected revenue increase of 37 pct to more than 3.5 mln dlrs. After an extraordinary expense associated with the December, 1986 withdrawal of a planned common share offering, "we expect to be modestly profitable for the year, but below the 410,000 dlrs earned in fiscal 1986," the company said. Carolian previously reported fiscal six month profit of 12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs, compared to earnings of 69,829 dlrs in the prior year. The company said it anticipated fiscal 1987 earnings to be lower due to withdrawal of its share offering, computer equipment shipment delays and costs associated with sales staff expansion. A strengthening Canadian dollar against U.S. currency will also adversely affect revenues and earnings, since 85 pct of revenues are generated by sales outside Canada, said Carolian, a leading supplier of utility software for Hewlett-Packard computer systems. Reuter 
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS
TUNISIA TO BREAK TIES WITH IRAN
Tunisia has decided to break diplomatic relations with Iran, the foreign ministry said. A communique published by the official TAP news agency said the Iranian embassy in Tunis had been engaged in activities liable to disturb public order. These included acts aimed at sowing ideological confusion and anarchy, the communique said. Reuter 
U.S TREASURY'S MULFORD REAFFIRMS G-6 AGREEMENT
Treasury Assistant Secretary David Mulford reaffirmed U.S. backing for the Paris Agreement among six industrial nations to cooperate closely to foster exchange rate stability around current levels. In testimony prepared for delivery before a Senate banking subcommittee, Mulford said there was broad recognition in Paris that "further substantial exchange rate shifts could damage growth and adjustment prospects." But he also said while there are clear understandings among the countries regarding cooperation, "We have refrained from establishing a system of target zones or ranges." Mulford also said the six nations have not spelled out the way in which they intend to deal with possible market developments. He said governments must retain flexibility in dealing with exchange market pressures and efforts to establish rigid exchange rate objectives "or to specify too precisely the goals of intervention" would hurt official attempts to react to market pressures, he said. Accordingly, Mulford said setting specific currency objectives and intervention to achieve those objectives would be counterproductive. Commenting on the trade deficit, Mulford reiterated the Treasury position that the current account deficit will decline from 148 billion dlrs last year to around 130 billion dlrs this year, due to the exchange rate adjustments of the past 18 months. But he added trade imbalances would also be corrected by commitments from West Germany and Japan to stimulate their economies and by U.S. efforts to cut the budget deficit and enhance U.S. competitiveness. He also said some newly industrialized countries should let their currencies appreciate. Reuter 
FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED
French operators have requested licences to export 675,500 tonnes of maize, 245,000 tonnes of barley, 22,000 tonnes of soft bread wheat and 20,000 tonnes of feed wheat at today's European Community tender, traders said. Rebates requested ranged from 127.75 to 132.50 European Currency Units a tonne for maize, 136.00 to 141.00 Ecus a tonne for barley and 134.25 to 141.81 Ecus for bread wheat, while rebates requested for feed wheat were 137.65 Ecus, they said. Reuter 
U.S. GOLD EAGLE SALES PROJECTED AT 3.1 MLN OUNCES
American Eagle gold bullion coin sales are projected at 3.1 mln troy ounces in their first year on the market, well above the target of 2.2 mln, Donna Pope, director of the U.S. Mint, told journalists. World sales, which began on October 20, 1986, reached 2.193 mln ounces in less than six months of sales. This made it world market leader with a share of 37 pct in 1986, Pope said. Pope said that in volume terms, nearly half of all gold Eagle sales were within North America, roughly 40 pct were in Europe and about eight pct in Asia. She said despite introduction of several new gold bullion coins on the market recently, the Mint is aiming to preserve the Eagle's strong market share with extensive publicity. The Mint uses mainly newly mined U.S. Gold for the coins, as long as this is available at market prices. The remaining gold is taken either from U.S. Treasury stocks, or from the open market, Pope said. Gold analysts said the Eagle is facing competition here from the Canadian Maple Leaf, and also to a lesser extent from the South African Krugerrand. Some estimated the Maple Leaf's West German market share at 60 pct. The figures may be distorted, as many German investors buy gold bullion in Switzerland or Luxembourg to escape the 14 pct value-added tax imposed here. Including the tax, the one-ounce coins traded today at 906 marks, they said. Competition may also come from new gold coins, including Belgium's ECU, which began sales today. Britain and Australia also have plans to mint gold bullion coins, the analysts said. REUTER 
NEOAX <NOAX> TO SELL NOVATRONICS FOR 20 MLN DLRS
Neoax Inc said it has agreed to sell the assets and business of its Novatronics Division to Veeco Instruments Inc <VEE> for 20 mln dlrs. Neoax said it expects a gain of about nine mln dlrs on the transaction which is expected to becomleted during the second quarter, adding the gain will be sheltered by its tax loss carryforwards. Novatronics makes military-specification power supplies and avionics components for various prime government defense contractors. It had 1986 sales of 21 mln dlrs. Reuter 
PONCE FEDERAL BANK FSB <PFBS> RAISES DIVIDEND
Qtly div nine cts vs 7.5 cts in prior qtr Payable April 15 Record March 31 Reuter 
FOOTHILL GROUP <FGI> SEES BETTER FIRST QUARTER
Don Gevirtz, chairman of The Foothill Group Inc, told Reuters the company's first quarter results will be up sharply over last year's eight cents a share. "First quarter results will be dramatically better," he said following a presentation to analysts. He cited a sharp drop in non-earning assets, healthy asset growth and lower expenses. He declined to predict specific results for the first quarter. In the 1986 first quarter, the commerical finance company earned 606,000 dlrs, or eight cts per share. Gevirtz also declined to predict full year results, but said, "We expect an excellent year." In 1986 Foothill earned 3,239,000 dlrs, or 41 cts per share. Analysts expect Foothill to record earnings of 65 cts to 85 cts a share in 1987. During the presentation Gevirtz said Foothill has reduced to less than five pct the company's level of non-performing assets, which was as high as eight pct in previous years. David Hilton, chief financial officer, said the company's general and administrative expenses in 1987 will be reduced to about 3.0 to 3.5 pct of average assets from 4.3 pct in 1986. The company had average assets of 399.8 mln dlrs from continuing operations and 29.8 mln dlrs from discontinued operations in 1986, according to its annual report. Reuter 
COMMODORE <CBU> IN PACT FOR COMPUTER GRAPHICS
Commodore International Corp said it entered into two agreements to provide Amiga computer graphics technology to the coin-operated amusement industry. The agreements are with London-based <Mastertronic Ltd> and <Grand Products> of Elk Grove, Ill., and they join a similar previously-announced agreement with Bally Manufacturing Corp <BLY>, the company said. Under the terms of the agreement, Commodore said it will supply the companies with Amiga printed circuit board and Commodore technical knowhow and will obtain software licensing rights to video games developed for the Amiga hardware. 
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS
The Bank of France intervened on the market to buy dollars and sell yen to support the U.S. Currency, dealers said. A major French bank said it acted for the central bank in buying between five and 15 mln dlrs against yen. A dealer at another bank said his bank had been asked to publicise the intervention, to send a clear signal to the markets that central banks were acting in concert to maintain the exchange rates agreed to be appropriate at last month's meeting of the Group of Five and Canada in Paris. The dollar was being quoted at 6.0950/70 francs in early afternoon dealings after a fix of 6.09425 francs. The major French bank said it sold yen at a rate of 149.28 against the dollar. The U.S. Currency was subsequently being quoted at 149.25/35. The Bank of Japan was reported in the market overnight to bolster the credibility of the Paris accord following several days of pressure against the dollar. Pressure developed after U.S. Treasury Secretary James Baker repeated earlier statements that the Reagan administration had no targets for the dollar, apparently undermining the assumption that the agreement in Paris had fixed broad fluctuation ranges for major currencies. Baker later said his remark had been misinterpreted. REUTER 
STANDARD <SRD> REFERRING BP <BP> BID TO GROUP
Standard Oil Co said British Petroleum Co Plc's proposed offer of 70 dlrs a share for the 45 pct of Standard's stock not held by BP is being referred to a special committee of the company's board. This committee, which is composed of the independent, non-exective directors of the company, was formed in April 1986 for the purpose of monitoring the relationship between Standard Oil and BP. Standard said the group will consider BP's offer in due course noting the committee has retained the First Boston Corp and Cravath Swaine and Moore as advisers. Reuter 
MULFORD SEES MORE BANK LOANS TO DEBTORS IN 1987
U.S. Treasury Assistant Secretary David Mulford said he foresaw substantial net new commercial loans to the major debtor countries in 1987. In testimony before a Senate banking subcommittee, Mulford said he based this prediction on progress in talks between banks and Mexico, Chile, and Venezuela, as well as progress in negotiations with the Philippines. "These agreements, together with others for Argentina and we hope Brazil," should assure substantial new loans this year, Mulford said. Mulford defended the U.S. strategy for handling the debt crisis and added additional steps, like development by commercial banks of a menu of options to support debtor reform, can be undertaken. That particular development would maintain broad bank participation in new financing packages to debtors. Mulford stessed that greater flexibility in devising new money packages may be essential for future bank syndications. "The commercial banks have much to gain from taking the lead themselves to develop the kinds of ideas that help assure the concerted lending process works," he said. In particular, Mulford said banks and debtor nations will increasingly move toward repricing, retiming or rescheduling agreements as an alternative to new loans. "The benefits of such approaches may be substantial and may, in the right circumstances, be easier to achieve than new money packages," he said. But for debtors with substantial financing needs, new lending will still be necessary, he said. Mulford rejected congressional ideas for a debt facility as being far too costly to creditor governments, and ultimately taxpayers. Mulford urged further development of debt-equity swaps as well as broader mutual funds for conversion into equity. As in the past, Mulford said progress must be founded on economic reforms and sufficient new financing for debtors both to support those reforms and generate new growth. Reuter 
ANCHOR GLASS <AGLS> NOW SEES HIGHER 1ST QTR NET
Anchor Glass Container Corp said first quarter net income is now expected to exceed the 3.1 mln dlrs earned before extraordinary items in the year earlier quarter. Previously, the company had said first quarter results would likely be lower than for the 1986 period due to production disruptions caused by the large number of production line changes scheduled during the first quarter, its statement pointed out. While the disruptive effects of the production line changes had occurred in line with expectations, Anchor Glass said, first quarter operating results were helped by lower than anticipated operating costs and improved margins on sales as a result of a more favorable product mix. The company said its income performance for the full year remains very good. It also said Anchor Hocking Corp <ARH> has converted the entire principal balance of its Anchor Glass convertible subordinated note to 576,694 Anchor Glass common shares. Anchor Glass said the conversion decreased its total debt and increased stockholders' equity by about 9.4 mln dlrs and increased common shares outstanding to 13,902,716. It said the conversion will also reduce its annualized net interest expense by about 1.1 mln dlrs, or 600,000 dlrs after taxes. Reuter 
MACNEAL-SCHWENDLER CORP <MNS> RAISES PAYOUT
Qtly div five cts vs 2-1/2 cts prior Pay June 10 Record May 29 NOTE: Prior payment adjusted for two-for-one stock split declared recently. Reuter 
VISHAY <VSH> COMPLETES EXCHANGE OFFER
Vishay Intertechnology Inc said it has received a total of 2,362,616 common shares in response to its offer to exchange Class B shares for common shares, and all common shares received were accepted. Vishay said about 737,500 shares were tendered by chairman Alfred Slaner and 1,164,607 by president Felix Zandman, with other executives tendering another 223,387 shares. Vishay said it now has 4,675,435 common shares outstanding. Reuter 
CREDIT LYONNAIS UNIT HAS AUSTRALIAN DOLLAR BOND
Credit Lyonnais Australia is issuing a 40 mln Australian dlr eurobond paying 14-1/2 pct and priced at 101-1/8 pct, lead manager Hambros Bank Ltd said. The bond is due April 24, 1990 and is guaranteed by Credit Lyonnais. It will be available in denominations of 1,000 dlrs and will listed in Luxembourg. Fees comprise one pct selling concession with 1/2 pct management and underwriting combined. REUTER 
VIACOM INTERNATIONAL INC <VIA> SETS QUARTERLY
Qtly div seven cts vs seven cts prior Pay May Eight Record April 17 Reuter 
WALT DISNEY ISSUES 60 MLN AUS DLR EUROBOND
Walt Disney Co Ltd is issuing a 60 mln Australian dlr eurobond due May 7, 1990 with a 14-1/2 pct coupon and priced at 101-3/8 pct, Warburg Securities said as lead manager. The non-callable bonds will be issued in denominations of 1,000 Australian dlrs and will be listed in Luxembourg. Gross fees of 1-1/2 pct comprise one pct for selling and 1/2 pct for management and underwriting combined. REUTER 
U.K. MONEY MARKET GETS 25 MLN STG LATE HELP
The Bank of England said it provided about 25 mln stg in late help to the money market, bringing the total assistance today to 266 mln stg. This compares with the bank's revised estimate of a 350 mln stg money market shortfall. REUTER 
IOMEGA <IOMG> IN SUPPLY AGREEMENT
Iomega Corp said it has signed a four-year agreement to supply Beta-20 disk drives with removable cartridges to <Leading Edge Hardware Products Inc>. Value was not disclosed. The company said shipments will stgart in the second quarter of 1987. Reuter 
LIBYA ABANDONS CHAD STRONGHOLD AFTER DEFEATS
Libyan troops are hastily evacuating their last important stronghold in northern Chad, leaving the key desert oasis undefended against advancing Chad government troops, military and diplomatic sources said. They said a Libyan force of some 3,000 men was abandoning the oasis of Faya-Largeau but added that severe sand storms across Chad could be delaying the pull out and an expected government strike on the town. Swirling clouds of sand, which have closed the capital of N'Djamena to commercial flights for two days, have sharply reduced visibility and made it difficult to determine the exact situation around Faya, French military officials said. The hurried Libyan evacuation, which started yesterday morning, follows the capture on Sunday of Libya's best-defended and vitally important air base at Ouadi Doum, 145 kms (90 miles) northeast of Faya. The fall of Ouadi Doum, which Chad said cost 1,269 Libyan lives, deprived Libya of its only hard surface runway in Chad capable of taking Soviet-made bombers and transport planes and left Faya-Largeau isolated and encircled by government troops. Libyan forces are reported to have blown up stocks of fuel and ammunition on Tuesday night before starting to flee northwards towards the Tibesti mountain region, which adjoins Libya's southern border. Reuter 
ROY F. WESTON <WSTNA> DISTRIBUTING STATEMENT
Roy F. Weston Inc expects to distribute a statement shortly, a spokesman said. NASDAQ has halted trading in the stock until the announcement is distributed, saying it last traded at 20-3/4. Reuter 
PHLCORP <PHX> HAS BREAKEVEN RESULTS
PHLCORP Inc said for November 14 through December 31, its first reporting period after emerging from reorganization proceedings, it earned 86,000 dlrs on revenues of 47 mln dlrs, excluding 2,300,000 dlrs in gains on the sale of real estate and 800,000 dlrs in tax credits. The company is the successor to Baldwin-United Corp. Reuter 
<MARSAM PHARMACEUTICALS INC> IN INITIAL OFFERING
Marsam Pharmaceuticals Inc said an initial public offering of 800,000 common shares is underway at 15 dlrs per share through sole underwriter <Smith Barney, Harris Upham and Co>. Reuter 
STONE CONTAINER <STO> TO REDEEM DEBT
Stone Container Corp said it has elected to redeem 200 mln dlrs of convertible debt. The paperboard and packaging producer said the debt consists of the entire outstanding principal amount of its 6-3/4 pct convertible subordinated debentures due April 15, 2011, and all of its outstanding series C cumulative convertible exchangeable preferred shares, both issued in the principal amount of 100 mln dlrs each. Stone said April 10 is the redemption date for the convertible debentures and April 27 is the redemption date for the series C preferred. Stone Container said the convertible debentures' redemption price is 1067.50 dlrs plus accrued interest of 32.81 dlrs for a total of 1100.31 dlrs for each 1,000 dlrs prinicipal amount of the debentures. Interest on the debentures will stop accruing on and after its redemption date, the company said. Stone Container added that the series C preferred's redemption price is 53.15 dlrs plus accrued and unpaid dividends of 12 cts for a total of 53.27 dlrs a share. Dividends on the shares will stop accruing on and after their redemption date as well, Stone Container said. Stone Container said shareholders also have the right to convert any or all of the debt into common shares at the conversion price of 56 dlrs a common share, or about 17.857 shares for each 1,000 dlrs of debentures ,and .893 shares for each series C share. The company said the conversion right will terminate after 1700 EST April 9 for the debentures and 1700 EST April 13 for the series C. Stone said that those electing to convert their holdings to common shares, becoming holders of record by May 22, will be entitled to the 20 cts per share quarterly cash dividend payable June 12, as well as the additional shares from the previously announced two-for-one stock split to be issued on June 12. Reuter 
FARM CREDIT SYSTEM REQUESTS U.S. CREDIT LINE
The financially-troubled Farm Credit System today formally asked that the Treasury Department provide a line of credit to the system and that Congress take steps to guarantee stock held by borrowers. In testimony prepared for delivery to a Senate agriculture subcommittee hearing, Brent Beesley, president of the Farm Credit Corp, said "In order to avoid the need for continued appropriations, the Farm Credit System Capital Corp should have a line of credit from the Treasury." Beesley said in April the system would recommend a dollar amount of aid needed. In addition, Beesley urged Congress to immediately take steps to reassure borrowers from the system that their stock is secure. We urged the Congress to go on record through a resolution stating its commitment to protect the stock," Beesley said. Borrowers from the system own some four billion dlrs in stock that could be jeopardized by the mounting losses of the Farm Credit System. Beesley also said that if Congress takes action to reduce interest rates offered to farmers to below-market levels, "The government should provide this interest rate relief. Reuter 
OAKWOOD HOMES <OH> SELLS CONVERTIBLE DEBENTURES
Oakwood Homes Corp is raising 25 mln dlrs via an offering of convertible subordinated debentures due 2012 with a 6-1/2 pct coupon and par pricing, said lead manager Donaldson, Lufkin and Jenrette Securities Corp. The debentures are convertible into the company's common stock at 21.25 dlrs per share, representing a premium of 23.19 pct over the stock price when terms on the debt were set. Non-callable for three years, the issue is rated B-2 by Moody's Investors and B by Standard and Poor's. J.C. Bradford and Legg Mason co-managed the deal. Reuter 
EMCO SETS 75 MLN DLR DEBENTURE OFFERING
<Emco Ltd> said the board approved a public offering of 75.0 mln dlrs principal amount of 7-1/4 pct convertible subordinated debentures, maturing April 30, 2002, subject to regulatory approvals. The debentures will be convertible into common shares at any time up to April 30, 1992 at a price of 17.50 dlrs a share, and then up to April 30, 1997 at 18.50 dlrs a share. Masco Corp <MAS>, holding 44 pct of Emco, has agreed to purchase 33.0 mln dlrs of the debentures. Underwriters are Gordon Capital Corp, Midland Doherty Ltd, Merrill Lynch Canada Inc and Levesque Beaubien Inc. Reuter 
FISCHER-WATT TO SELL CONVERTIBLE PREFERRED
<Fischer-Watt Gold Co Inc> said it intends to raise about five mln dlrs from the private sale of convertible preferred stock. The company said based on successful completion of the placement, proceeds of which will be used to expand gold and silver recovery, it hopes to produce 14,000 ounces of gold and 210,000 ounces of silver this year, up from 2,500 and 15,000 respectively last year. Reuter 
FOOTE MINERAL TO MERGE INTO RIO TINTO
Foote Mineral Co said it signed a letter of intent to merge into Rio Tinto-Zinc Corp PLC for cash. Foote, 83 pct owned by Newmont Mining Corp, said Newmont has informally indicated it would vote in favor of the Rio Tinto proposal. Foote said terms of the agreement, including price for the proposed cash transaction, have not been released because they are subject to a continuing due diligence investigation. The company said a definitive merger agreement is expected to be negotiated within six weeks and shareholders are expected to vote on the deal at a meeting expected to be held in June or July. Reuter 
ALUMINIUM SCRAP RECOVERY AND USAGE TO RISE
Aluminium scrap recovery and usage and output of secondary metal will continue to rise, said Shearson Lehman Brothers in a review of the secondary aluminium market which details cost and demand factors. Although primary smelting costs have declined generally in recent years, the still substantial energy cost savings offered by secondary smelters will continue to make re-melted material increasingly attractive. It takes around 15,000 kilowatt hours (kwh) of electricity to produce one tonne of primary aluminium compared with around 550 kwh for one tonne of secondary metal, Shearson said. On the demand side, developments in automobiles and packaging bode well for secondary aluminium consumption. Automobile production, although expected to fall this year, is still on an upward trend and will continue to be so for the foreseeable future and, in addition, use of aluminium castings is gaining wider acceptance in the automobile industry, particularly in the U.S. In packaging, Shearson does not expect aluminium to dominate the beverage can market in any of the other major economies to the extent it does in the U.S., But says there is evidence recycling is on the increase in other countries. In addition to the cost savings involved, technology advances now enable alloys of higher purity to be produced by the secondary aluminium industry, Shearson said. There is not likely to be a problem of availability as the U.S. Has a huge scrap reservoir and this is also true of several European countries, albeit on a smaller scale. Reuter 
CROSS AND TRECKER <CTCO> BUYS AUTOMATION UNIT
Cross and Trecker said it agreed to acquire the Alliance Automation Systems division of Gleason Corp <GLE> for an undisclosed amount of cash. It said the Gleason division manufactures automated assembly and test systems used in the production of small to medium size components for a number of industries, including automotive, electronic and appliance. Alliance Automation had 1986 sales of about 35 mln dlrs and employs 200. Reuter 
SALANT CORP <SLT> 1ST QTR FEB 28 NET
Oper shr profit seven cts vs loss 12 cts Oper net profit 216,000 vs loss 401,000 Sales 21.4 mln vs 24.9 mln NOTE: Current year net excludes 142,000 dlr tax credit. Company operating in Chapter 11 bankruptcy. Reuter 
CRAY <CYR> INSTALLS 22 MLN DLR COMPUTER
Cray Research Inc said Los Alamos National Laboratory in Los Alamos, N.M. installed a Cray X-MP/416 supercomputer valued at about 22 mln dlrs. It said the system was installed in the fourth quarter of 1986 as a lease and converted to a purchase in the first quarter of 1987. Reuter 
HEALTHMATE INC <HMTE> 4TH QTR LOSS
Shr loss five cts vs loss six cts Net loss 473,784 vs loss 489,257 Revs 268.8 mln vs 81.7 mln Avg shrs 9,245,247 vs 8,035,326 Year Shr loss 17 cts vs loss 20 cts Net 1,512,534 vs loss 1,553,592 Revs 1,448,310 vs 515,225 Avg shrs 8,745,132 vs 7,619,863 Reuter 
KEATING REVISES DOWN AUSTRALIAN GROWTH FORECAST
Treasurer Paul Keating forecast economic growth at slightly under two pct in the financial year ending June this year, down from the 2.25 pct forecast contained in the 1986/87 budget delivered last August. Australia's terms of trade also fell, by 18 pct, over the past two years, he told Parliament. Terms of trade are the difference between import and export price indexes. Despite the figures, the budget forecast of about 1.75 pct annual growth in employment would be met, Keating said. Unemployment is currently at 8.2 pct of the workforce. "This government is dragging Australia through a trading holocaust the kind of which we have not seen since the Second World War," Keating said. "We are not pushing this place into a recession. We are not only holding our gains on unemployment, we are bringing unemployment down," he said, adding that the government had help the country avoid recession. REUTER 
VICON INDUSTRIES <VII> VOTES STAGGERED BOARD
Vicon Industries Inc said its shareholders approved an amendment to divide its nine-member board into three classes with staggered tenures. It also said shareholders expanded the indemnification rights of the company's directors and officers. Both actions were taken at the company's annual shareholders meeting, Vicon said. Reuter 
FRENCH STOCK BILL TO BE PRESENTED BEFORE JUNE
The French government will present to parliament a major bill within two months to overhaul the Paris stock market, economics and finance minister Edouard Balladur said. Balladur told an Economist conference that on the product side, a series of new contracts, including share options and forward contracts in European Currency Units (ECUs), would be introduced shortly for trading on the Paris bourse. The scope of the new bill, however, was to transform the organisation of equity trading, allowing participants both to perform a banking role and to trade in equities, he said. "Currently, the French market is based on the Napoleonic principle of separation of equity trading and banking. This principle has become a dividing, and therefore a weakening, factor for the market," Balladur said. He said under the planned new rules, stock brokers, currently very specialised and undercapitalised, would be free to link up with powerful financial institutions after a five-year transition period. Stock brokerages would be subject to legislation similar to that in the U.K. And U.S., He said, adding the Paris market would actively attempt to attract foreign securities houses. Balladur said the French securities market had enjoyed strong growth in the past 10 years, with new share and bond issues totalling 430 billion French francs in 1986, compared with 53 billion in 1976. New share issues alone totalled 63 billion francs in 1986, up 230 pct from the 1985 level of 19 billion francs, he said. Total market capitalisation stood at 3,200 billion francs at end-1986, compared with 400 billion 10 years earlier, while stock and bond trades were valued at 2,200 billion francs last year against 56 billion in 1976, he said. Balladur, who also had private talks with U.K. Prime Minister Margaret Thatcher and Chancellor of the Exchequer Nigel Lawson, said his government was also preparing a bill to liberalise the French insurance sector. Under the proposed rules, an independent regulatory insurance commission will be set up. The commission will be endowed with powers similar to those of a body set up earlier to monitor the banking sector, Balladur said. He said the new bill would also aim to adapt insurance regulation to take account of the ever-closer integration of all areas of finance. REUTER 
GERMAN TAX CUT BILL TO GO BEFORE CABINET APRIL 1
The West German Finance Ministry said the cabinet will discuss a bill on Wednesday to increase tax cuts by an extra 5.2 billion marks next year to a total of 13.7 billion marks. The additional tax cuts were agreed within the government coalition in early March after Finance Minister Gerhard Stoltenberg pledged at the six-nation monetary conference in Paris in February to increase the size of the 1988 tax cuts. The bill will be presented in parliament at a later, unspecified date after the cabinet's deliberations. REUTER