EXCO BUYS U.S. GOVERNMENT SECURITIES BROKER

  &lt;Exco International Plc>, a subsidiary of
  British and Commonwealth Shipping Co Plc &lt;BCOM.L>, said it had
  agreed in principle to buy an 80 pct stake in &lt;RMJ Holdings
  Corp> for about 79 mln dlrs.
      Exco Chairman Richard Lacy told Reuters the acquisition was
  being made from Bank of New York Co Inc &lt;BK.N>, which currently
  holds a 50.1 pct, and from RMJ partners who hold the remainder.
      Bank of New York and the partners will retain about 10 pct
  each and these stakes will be bought over the next six years.
      RMJ is the holding company of RMJ Securities, one of the
  largest U.S. Government securities brokers.
      It is also involved in broking notes, obligations and other
  instruments sponsored by U.S. Federal agencies.
      Lacy said Exco had been considering buying a U.S.
  Government securities broker for the past four years and had
  made an offer for RMJ when it was sold by Security Pacific Corp
  &lt;SPC.N> in 1985. RMJ was then valued at about 50 mln dlrs.
      B and C managing director Peter Goldie said RMJ would be
  bought at about the same multiple as Exco, suggesting net
  income of around 16 mln dlrs.
      The company's earnings had not been hit by the halving of
  brokerage fees some 14 months ago as volumes had since doubled.
      Lacy said that RMJ employed some 300 people, with 200 in
  the brokerage business and about 70 in its &lt;SMS> unit, which
  provided computer software for the financial services
  community.
      RMJ Securities had offices in New York, where total market
  turnover of U.S. Government securities was 110 billion dlrs a
  day, and in London where it has 15 billion.
      It was also given permission last week to open an office in
  Tokyo where total market turnover had lifted rapidly to about
  five billion dlrs a day.
      The acquisition would contribute between five and 10 pct of
  B and C's share earnings in 1987 on a proforma basis.
  

