CPC &lt;CPC> TO SELL EUROPEAN BUSINESS

  CPC International Inc said it reached
  an agreement in principle to sell its European corn wet milling
  business to Agricola Finanziaria SpA, a member of the Ferruzzi
  Group, for a price in excess of 600 mln dlrs.
      The transaction is expected to be completed by September
  30.
      CPC said it expects no material gain or loss this year from
  the transaction. But the effect of the deal on 1987 earnings
  can be evaluated in full only when the definitive pacts are
  completed, it said.
      The long-term effect of the transaction on CPC's earnings
  should be positive, it added, as it will allow capital
  expenditures to be cut back and will reduce corporate and
  divisional overheads as well as operating expenses in the
  European business.
      The sale is an important part of a restructuring announced
  in November, CPC said.
      Proceeds of the sale will be used to reduce debt incurred
  in the purchase of the Arnold Foods and Old London specialty
  baking businesses and the stock repurchase program that was 
  part of the restructuring.
      As of December 31, CPC had bought about 15 mln of its
  common shares, adjusted for a 2-for-1 split in January, for a
  total cost of 621.8 mln dlrs, according to its 1986 annual
  report.
      In December, CPC acquired Arnold Foods and Old London for a
  total of about 170 mln dlrs.
      CPC had previously said it wanted to sell the European corn
  wet milling business and use the proceeds to help reduce debt,
  including that incurred under the share buyback.
      In total, CPC has bought back about 16 mln shares of common
  stock, adjusted for the split, it said today. In November it
  authorized a buyback of 20 mln shares, adjusted for the split.
      The buyback and the restructuring were triggered in
  November, after companies controlled by Ronald Perelman,
  chairman of Revlon Group Inc &lt;REV>, acquired about 7.6 pct of
  CPC's then outstanding stock.
      In 1986, the European corn wet milling business had sales
  of 914.1 mln dlrs, operating income before overheads of 68.8
  mln dlrs and associated headquarters overhead costs of 19.7 mln
  dlrs, according to CPC's 1986 annual report.
      The businesses' assets were 645.7 mln dlrs in 1986, the
  report said.
  

