ALLEGHENY BEVERAGE &lt;ABEV> EXPLORES UNIT SALE

  Allegheny Beverage Corp said it
  has been approached by a group interested in acquiring its
  foodservice unit, Service America Corp.
      The group includes senior management of Service America but
  no officers of Allegheny Beverage, the company said.
      The company has agreed to permit the group and its
  potential lenders to perform a due diligence review of Service
  America, it said.
      Allegheny noted it had previously cancelled plans to spin
  off the foodservice subsidiary.
      The company said the group's review is preliminary and
  there is no assurance that an acquisition proposal will be made
  or, if made, accepted.
      Service America had fiscal 1986 revenues of about 934 mln
  dlrs, or about 83 pct of Allegheny Beverage's total revenues of
  1.13 billion dlrs for the year ended March 29, 1986, a
  spokesman for Allegheny Beverage said.
      He declined to identify the Service America officials in
  the acquisition group.
      On Feb 18, 1987, Allegheny said it was cancelling the spin
  off of Service America, but gave no reason for doing so. It
  said it would place major emphasis on managing Service America
  to improve operations and increase earnings at the unit.
      Service America, which Allegheny acquired in May 1985,
  operates cafeterias and food and beverage vending machines.
  Through other subsidiaries, Allegheny provides coin-operated
  laundry services, building maintenance services and retail
  office and furniture operations.
      In fiscal 1986, Allegheny reported earnings from continuing
  operations of 8.2 mln dlrs or 1.09 dlrs a fully diluted share,
  excluding income of 59.7 mln dlrs from discontinued operations
  and an extraordinary loss of 8.1 mln dlrs. In May 1985,
  Allegheny sold its Pepsi-Cola Bottling Co unit to Pepsico Inc
  &lt;PEP> for 160 mln dlrs.
      Including discontinued operations and the special item, net
  income was 59.8 mln dlrs or 6.21 dlrs a share fully diluted.
  

