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GPU <GPU> SEES TMI-2 FUEL PROBLEMS RESOLVED

General Public Utilities Corp said the water-clarity problem delaying the removal of fuel from the damaged Unit Two of the Three Mile Island nuclear power plant appears to have been resolved. The company said the slower than expected removal of the fuel, which has been primarily due to the water-clarity problems, is now expected to extend fuel removal into 1988. A spokesman said the company had previously expected this to be completed by the end of 1987 and has not estimated how far into 1988 the process will extend. It still expects to complete the entire clean-up by the end of 1988, he added. GPU said its auditors, Coopers and Lybrand, again qualified its opinion of GPU's financial statements, adding the recovery of TMI-2 decommissioning costs to the unresolved issues leading to the qualified opinion. GPU said its operating subsidiaries will seek to recover the costs of decommissioning TMI-2 in future rate proceedings. As in past years, the qualified opinion continues to list other uncertainties associated with the accident, which damaged TMI-2 -- the recovery of cleanup costs and any payments for damages that might exceed available insurance proceeds. Reuter 

ECHLIN<ECH> EXPECTS CONTINUED PROFIT GROWTH

Echlin Inc said it expects further earnings increases for the second half of fiscal 1987 ending in August due to unit sales growth and improved operations. "As expected, market conditions have improved so that demand for automotive replacement parts is gradually and steadily expanding," Echlin president Frederick Mancheski said. Earlier, Echlin reported first half fiscal 1987, ended Feb 28, earnings of 23.2 mln dlrs, or 48 cts a share, up from 16.6 mln, or 40 cts a share, in the prior year's first half. Also, Echlin said it had second quarter net income of 11.8 mln dlrs, or 24 cts per share, compared with net income of 8.3 mln dlrs, or 20 cts a share, in fiscal 1986's second quarter. Reuter 

ATT <T> COST-CUTTING EFFORTS ON TARGET

American Telephone and Telegraph Co chairman James E. Olson said he is very pleased with the company's efforts so far to cut costs. He told a meeting of securities analysts that, although the company is not yet at point in its cost-cutting drive to improve profit margins, it is "on the right track." Olson said ATT's cash flow was "very strong in the first two months of the year, better than budgeted." While Olson does not know if the company's earnings and revenues will improve by yearend, he said ATT is "moving in the proper direction." For 1986, ATT's earnings dropped to 139 mln dlrs, or five cts a share, on revenues of 34.1 billion dlrs, from 1.56 billion dlrs, or 1.37 dlrs a share, on revenues of 34.4 billion dlrs in 1985. During 1986 ATT took 3.2 billion dlrs in charges from expenses related to reducing its work force by 32,000. Reuter 

HUDSON'S BAY WRITEOFF MAINLY DUE TO DOME STAKE

<Hudson's Bay Co> said a writeoff of 40.4 mln dlrs, or 1.39 dlrs per share, that it took in 1986 was mainly due to its investment in Dome Petroleum Ltd <DMP>. The company reported an operating profit of 33.0 mln dlrs, or 32 cts per share, for fiscal 1986, compared to an operating loss of 9,055,000 dlrs, or 1.23 dlrs per share, in the previous year. Hudson's Bay holds about four mln shares of Dome's 10 pct series one cumulative subordinate convertible preferred shares. Last March, Dome suspended payment of dividends on all preferred shares until June 1, 1987. The shares give the holder the right to convert to Dome common shares at 3.33 dlrs per share. Dome has the right to force conversion if Dome common reaches 3.885 dlrs per share. Dome is trading at 1.12 dlrs per share, down one ct, today on the Toronto Stock Exchange. Hudson's Bay also said it had an increase in 1986 in retail operating profit to 185.3 mln dlrs from 111.4 mln dlrs, but that was partially offset by an increase of 14.9 mln dlrs in interest costs and 25.3 mln dlrs in taxes. Hudson's Bay also said its Markborough properties subsidiary had an operating profit of 108.6 mln dlrs, up from 98.8 mln dlrs the year before. Profit from non-Markborough real estate was 23.5 mln dlrs in 1986, down from 27.6 mln dlrs a year ago. Operating profit from natural resources was 4.2 mln dlrs, up 1.2 mln dlrs from the prior year. Pensions costs were reduced by 34.9 mln dlrs due to an accounting change. Total debt declined during the year by 251 mln dlrs to 2.28 billion dlrs and debt to equity ratio improved to 1.8 to one from 2.1 to one. Reuter 

CREDIT LYONNAIS SIGNS USSR JOINT VENTURE PACT

French bank Credit Lyonnais said it signed a protocol of agreement with the Soviet Union to establish a joint financial group to help set up and finance joint ventures between the Soviet Union and western firms. It said in a statement it signed the agreement here with the Soviet central bank (Gosbank) and foreign trade bank (Vneshtorgbank), following the announcement earlier today of a similar, but wholly separate, agreement between the Soviet Union and Banque de l'Union Europeenne. No joint ventures have yet been finalised under January 1987 Soviet laws enabling joint ventures although some protocols of intent aiming at their establishment have already been agreed between western firms and the Soviet Union. Reuter 

SEC HEAD NOMINATED U.S. AMBASSADOR TO NETHERLANDS

President Reagan is to nominate John Shad, chairman of the Securities and Exchange Commission, SEC, as ambassador to the Netherlands, the White House said today. Shad, 63, a former executive with the Wall Street firm of E.F. Hutton and Co., would succeed L. Paul Bremer, now the State Department's chief counter-terrorism expert. The White House also said that Reagan will nominate career diplomat Sol Polansky, 60, as ambassador to Bulgaria. Polansky previously served in Moscow, Poland, East Germany, Austria and other posts. The nominations are subject to Senate approval. Reuter 

JAPAN OPENS HOME MARKET TO U.S. FISH

Japan has agreed to drop barriers to American-caught herring and pollock, opening the way for shipments that could reach 300 mln dlrs annually, U.S. Trade Representative Clayton Yeutter announced. Yeutter said the accord was reached after extensive bilateral negotiations that ended earlier today in Tokyo. He said the Commerce Department estimated U.S. shipments of processed pollock products and herring should rise to 85 mln dlrs this year and to more than 300 mln dlrs annually in later years. There was no immediate assessment of the value of current U.S. shipments, but officials said the pact would lift quotas to the point that Americans would be able to ship nearly all the pollock and herring ordered by Japanese firms. At the same time, Yeutter said Washington was temporarily suspending a complaint with the General Agreement on Tariffs and Trade (GATT) that Japan was unfairly curbing imports of the two fish. He said the complaint would be reviewed later this year after an assessment to see if Japan lived up to the agreement. Reuter 

FIRST UNION <FUNC> BANKS ELECTRONICALLY LINKED

First Union National Bank of Florida, a unit of First Union Corp, said it has electronically linked its Florida and North Carolina 24-hour banking machines. The bank said the service, which starts April 15, will let First Union customers make withdrawals and balance inquiries at any of its locations in Florida and North Carolina. "This link-up will give customers immediate access to their accounts without additional cost whether they are in Florida or in North Carolina," said B.J. Walker, vice chairman of First Union Corp and chairman, president and chief executive officer of First Union National Bank. Reuter 

REAGAN WILL NOMINATE SEC CHAIRMAN SHAD AS AMBASSADOR TO NETHERLANDS

AMERICAN EXPRESS SAID IT GETS SEC SUBPOENA ON DEALINGS WITH FIREMAN'S FUND, AMERICAN EXPRESS

SHEARSON LEHMAN GETS SEC SUBPOENA ON TRANSACTIONS WITH JEFFERIES AND OTHERS

FIRST FINANCIAL <FFMC> ACQUIRES TEL-A-DATA

First Financial Management Corp said it acquired the data processing contracts and certain related assets of Tel-A-Data L.P. for about 5.7 mln dlrs cash plus the assumption of certain liabilities of about 2.5 mln dlrs. Tel-A-Data serves about 50 bank and thrift institutions through a processing center in Lombard, Illinois. First Financial offers data processing services to over 800 financial institutions through 35 data processing centers. Reuter 

MCM CORP <MCMC> SETS QUARTERLY

Qtly div six cts vs six cts prior Pay April 10 Record March 31 Reuter 

THACKERAY CORP <THK> YEAR LOSS

Oper shr loss 22 cts vs loss 20 cts Oper net profit 1,013,000 vs profit 2,219,000 Sales 77.0 mln vs 74.0 mln Avg shrs 5,107,401 vs 5,361,793 Reuter 

U.S. FEB BUDGET DEFICIT 28.37 BILLION DLRS VS YEAR AGO DEFICIT 24.58 BILLION

GENISCO TECHNOLOGY <GES> UNIT SETS PACT

Genisco Technology Corp's Genisco Peripheral Systems unit said it set a pact with Westward Technology Ltd, based in England, to exchange technology efforts and grant mutual distribution rights to a variety of computer graphics products. Under the pact, Westard and Genisco will sell both companies' graphics products in Europe and the U.S. The two companies will also swap equipment repair operations and expand their overall sales forces. Reuter 

CONCERN OVER "EL NINO" IN PERU - USDA REPORT

There are heightened fears that "El Nino" may be returning to Peru with an intensity approaching the 1983 disaster, which affected the weather on several continents and caused widespread damage through floods and drought, the U.S. Agriculture Department's officer in Lima said in a field report. Continued heavy rains in the northern coastal area, flooding of several major rivers and mud slides have led to increased concern, the report, dated March 17, said. However, it said official sources still believe that this year's El Nino will have only weak to moderate intensity. EL Nino is a phenomenon involving a shift in winds and waters in the pacific. The USDA report said that so far the El Nino now being experienced has not had an overall negative impact on agricultural production. Excessive rains in the Piura Pima cotton area may reduce yields by about 20 pct due to excessive growth too early in the crop cycle. Also insect damage to crops could be more extensive where excessive moisture exists, it said. However, the El Nino has resulted in a much improved supply of irrigation water in the major dams which will improve prospects for many crucial crops such as rice and corn, and slow the decline in sugar production, it said. If El Nino picks up momentum, Peru's fishing industry could receive a setback. But trade sources still believe the fish catch for industrial processing will reach 5.5 mln tonnes in 1987, almost 20 pct above last year, the report said. Water temperatures in the northern fishing areas are three to four degrees centigrade above normal but still not high enough to drive the fish to cooler southern waters, it said. It said there is still the outside chance that El Nino will intensify and carry on through late March, April and May causing problems as crops approach harvest. "There appears to be no way to project the course of El Nino -- only time will tell," the report said. Reuter 

ALLIED-LYONS SEES SUBSTANTIAL SECOND HALF GROWTH

<Allied-Lyons PLC> will report substantial growth in the second half of fiscal 1987 ended March 7, chairman Derrick Holden-Brown said in answer to reporters' queries. "You will certainly see substantial growth in Allied-Lyons in the second half," Holden-Brown said following a presentation to Toronto securities analysts. Holden-Brown declined to say whether second half growth in profit before taxes would exceed the 20.7 pct rise reported in the first half. Allied-Lyons had first half profit of 148.0 mln stg, up from 122.6 mln stg in the prior year. Allied-Lyons will also have a full year extraordinary cost of slightly more than seven mln stg for defence costs associated with Elders IXL Ltd's failed take-over bid for the company, Holden-Brown also said. But that cost will be more than offset by an extraordinary gain of about 60 mln stg on Allied-Lyons' sale of its 24.9 pct interest in Australian brewers Castlemaine Toohey, he said. "So with Australians, you win some and you lose some. But hopefully you win them all in the end," Holden-Brown said. Asked if he thought Allied-Lyons is vulnerable to other take-over attempts, Holden-Brown replied: "No, I don't." "We must never be complacent and we must always be very watchful, but I think we would be very expensive," he said. Holden-Brown said Allied-Lyons' share price to corporate earnings ratio is now comparable with other leading companies in the food and beverage industry. "That was not the case two years ago. If the Australians had come a little bit earlier, they might have had more luck, I think," Holden-Brown said. Holden-Brown said Allied-Lyons' move to acquire Hiram Walker-Gooderham and Worts Ltd in March, 1986 during Elders take-over bid for the company was "100 pct a growth action." "We knew when we did it that it could be misconstrued, and that people almost inevitably would say (the acquisition was) defensive, but it never was," Holden-Brown told reporters. Asked by securities analysts if Allied-Lyons plans a share issue in Canada after acquiring a 51 pct interest in Hiram Walker, Holden-Brown responded: "Plan might be too strong a word. But I must say I do feel the need for Allied-Lyons to be better known in Canada." Reuter 

FIRST INTERSTATE BANCORP FILES SHELF REGISTRATION FOR 1.5 BILLION DLRS IN DEBT SECURITIES

U.S. FROZEN ORANGE JUICE STOCKS - MARCH 1 102,618,000 GALLONS VS 97,111,000 YEAR AGO

U.S. COLD STORAGE STOCKS - MARCH 1 FROZEN PORK BELLIES - LBS - 34,471,000, VS A REVISED 34,900,000 ON FEB 1 AND 51,218,000 A YEAR AGO.

<DRYCLEAN USA> YEAR NET

Shr 82 cts vs 63 cts Net 1,661,000 vs 1,251,000 Revs 14.8 mln vs 11.6 mln Reuter 

U.S. BUDGET DEFICIT 28.37 BILLION DLRS IN FEB

The U.S. budget was in deficit 28.37 billion dlrs in February, up from a deficit of 24.58 billion dlrs in February, 1986, the Treasury Department said. Last month's deficit compared with a January deficit of 2.17 billion dlrs. For the fiscal year to date, the budget was in deficit by 93.92 billion dlrs, compared with 106.2 billion dlrs in the previous fiscal year, the Treasury said. Outlays last month totaled 83.83 billion dlrs, more than the 77.95 billion dlrs of outlays in February a year ago but slightly down from 83.94 billion dlrs in January, the Treasury said. Receipts were 55.46 billion dlrs last month, up from 53.37 billion dlrs in February, 1986, but down from 81.77 billion dlrs in January. Reuter 

COLD STORAGE REPORT FOR BELLIES NEUTRAL/NEGATIVE

Chicago Mercantile Exchange floor traders' immediate reaction to the cold storage report for pork bellies was neutral to slightly negative. Frozen pork belly stocks at 34.5 mln lbs on March 1 compared with a revised 34.9 mln lbs on February 1 for a net out movement of 0.5 mln lbs. The number on hand compared with trade guesses of 33.5 to 36 mln lbs and the year ago figure of 51.2 mln lbs. Traders said the figure was toward the upper end of expectations and may provide slight downward pressure because of recent sharp gains in futures. Reuter 

AMERICAN EXPRESS <AXP> AND UNIT GET SUBPOENAS

American Express Co said it was subpoenaed by the Securities and Exchange Commission in connection with documents on transactions in securities of American Express and its former unit, Fireman's Fund. American Express said its brokerage unit, Shearson Lehman Brothers Inc was also served with a subpoena. Shearson acted as co-manager in the underwriting of units of Fireman's common stock and warrants last May, was also served with a subpoena, it said. American Express said the subpoena to Shearson relates to transactions with Jefferies and Co and others. American Express said it and Shearson intend to comply with all requests from the SEC and to cooperate fully. American Express said neither company is aware of any unlawful conduct with respect to the matters and a thorough investigation is continuing. American Express said the subpoenas were received yesterday, and that it and Shearson were unaware of any inquiry prior to receiving the subpoenas. Yesterday, Boyd Jefferies, founder of Jefferies Group, said he agreed to plead guilty to two felony counts of securities violations. Jefferies also settled charges with the Securities and Exchange Commission of market manipulation and another scheme with Ivan Boesky, who has settled SEC charges of insider trading. Jefferies' firm was censured by the SEC and ordered to retain an outside consultant to review its procedures. In documents filed on Jefferies yesterday, the SEC did not identify who was involved in the market manipulation scheme aside from Jefferies. It said "a certain issuer," which held controlling interest in a second public company, offered several mln shares of the company's common stock to the public in a secondary offering during 1986. The SEC alleged that Boyd Jefferies carried out a scheme with an unidentified person to drive up the price of the second company's stock prior to the offering by having the Jefferies firm trade in the stock. Jefferies and co was allegedly compensated for the loss from those trading activities after sending a fake invoice to another unnamed person, the government charged. American Express first offered Fireman's Fund Corp's stock to the public in 1985. It lowered its holding from 100 pct to 41 pct. In May, 1986, it reduced its ownership interest to 27 pct by completing a public offering of nine mln units. Each unit consisted of one share of common and one warrant to buy Fireman's fund. The warrants are exercisable from the issue date through March, 1989. At the same time, American Express sold warrants directly to Fireman's Fund to purchase five mln shares. Those warrants are exercisable between November, 1988 and March 1991. American Express said if all warrants were exercised it would own about 13 pct of Fireman's fund. American Express stock fell 1-1/2, to 77-1/4 on volume of 1.9 mln shares. The stock had been strong in the last two days, first on rumors, then an announcement of an understanding American Express reached to sell Nippon Life Insurance Co 13 pct of Shearson. Wall Street has also been anticipating American Express will sell a stake in the brokerage unit to the public as well. E.F. Hutton analyst Michael Lewis said he does not believe the subpoenas will affect Nippon's deal with American Express, but it could result in a delay of the public offering anticipated for Shearson. "If they're forced to keep a bigger percentage of Shearson a little longer...big deal. They're certainly not going to throw Shearson away. Shearson is still an attractive asset," he said. American Express has not commented on speculation it would offer part of Shearson to the public, but it has said it was continuing to review options for the brokerage. Analysts had speculated an offering of a part of Shearson would be forthcoming shortly. "It puts a cloud over it for a while...The market is anxious to see them consumate whatever they were going to consumate," Lewis said. Reuter 

S/P UPGRADES AMERICAN SECURITY <ASEC> AND UNIT

Standard and Poor's Corp said it raised to A-1 from A-2 American Security Corp's commercial paper. S and P also upgraded, to A and A-1 from BBB-plus and A-2 respectively, the certificates of deposit of American Security's lead bank, American Security Bank N.A. The rating agency said the actions reflected the firm's merger with what it termed a stronger Maryland National Corp, as well as American's improving performance. S and P said the merger would allow American Security to diversify its wholesale funding base. Reuter 

BALLY <BLY> SEEN SELLING OFF HEALTH UNIT

Bally Manufacturing Corp's proposed public offering of 24 pct of its Health and Tennis Corp unit is seen as the first step towards the sale of the entire unit, analysts said. "In the longer-term horizon, Bally wants to concentrate on its gaming businesses," said analyst Dennis Forst of Seidler Amdec Securities Inc. Last week, Bally said it was considering the sale of another non-casino unit, its Six Flags amusement park unit, which analysts said could fetch about 300 mln dlrs. Bally spokesman Bill Peltier said "the company currently has no hard plans to the sell any more of the health club company, but in the long term we'll wait and see how the offering goes." Once Bally's biggest revenue producer, the health club unit had 1986 operating income of 60 mln dlrs on revenues of 456.2 mln dlrs, 28 pct of Bally's revenues. Analysts estimate the unit could be sold for for 300-500 mln dlrs. Analysts said Bally's decision to offer shares in the unit could be the first step to selling it. "It would seem obvious that an offering would decrease the health club unit's debt, increase its cash flow and operating income, making it an attractive buy to a third party," Steven Eisenberg of Bear Stearns said. On Monday, Bally said it filed with the Securities and Exchange Commission for an initial offering of 24 pct, or 5.8 mln shares, of the unit's common stock at 13-15 dlrs a share. About half the proceeds, 40 mln dlrs, will be used to reduce parent Bally Manufacturing's debt which has swelled to 1.6 billion dlrs due to recent hotel acquisitions and the purchase of shares from Donald Trump who had threatened a hostile takeover, according to Bally treasurer Paul Johnson. Remaining proceeds from the stock offering and from a separate offering of 50 mln dlrs of 20-year convertible subordinated debt would be used to repay about 75 mln dlrs of short term senior bank debt of the health chain unit, a Bally spokesperson said. Analysts said Bally's health club unit's profits have remained strong, but are skeptical about the industry's long range prospects. "The fitness club industry, over the last 10 years, has grown tremendously, but the question is whether its a fad or a permanent part of our lifestyle," said Eisenberg of Bear Stearns. Analysts said fitness clubs will likely flourish if the public stays at its peak of health consciousness, but that overcapacity is likely to occur as consumer enthusiasm wanes. In addition, "the returns in the fitness club industry are just not as high as they are in the gaming industry," said one analyst. There are about 6,500 fitness clubs in the U.S., excluding clubs run by not-for-profit organizations, according to the Association of Physical Fitness Centers who estimates it to be an 8.0-billion-dlr-a-year industry. Asked if anyone has offered to buy the unit, which is the nation's largest health club chain, Peltier said, "no one has the money to offer to buy it." "The fitness industry is a fragmented industry with no leader and there is a great opportunity for growth through acquisition and then standardization," said Wayne LaChapelle, chief financial officer of Livingwell INc <WELL>, the nation's second largest fitness chain operator whih LaChapelle said Livingwell is always interested in acquisition opportunities but "could not afford an acquisition the size of Bally at this time." Reuter 

COMMERCIAL CREDIT <CCC> UNIT SELLS DIVISION

Commercial Credit Co said its American Health and Life Insurance Co sold its ordinary life insurance business to American National Insurance Co <ANAT>. American National will assume the business no later than August 31, 1987, Commercial Credit said. The sale is part of a restructuring program begun by Commercial Credit's subsidiary in late 1986, the company said. Reuter 

MORGAN STANLEY SAYS IT ENTERED MARKET ON CLOSE ORDERS TOTALING 1.1 BILLION DLRS

DELTA SAYS COURT ORDER WILL NOT DELAY MERGER

Delta Air Lines <DAL> said a court order requiring Western Air Lines <WAL> to arbitrate with two of its unions will not delay the April 1 merger between the two airlines. The order, which was issued by the Ninth Circuit Court of Appeals, requires Western to discuss with its two unions whether Western's labor contracts will be binding for Delta, Delta said. "Nevertheless, the court order could cause significant personnel problems, including the possible delay of wage increases Delta had planned to give the Western personnel on April 1," Ronald Allen, Delta's president, said. Delta said it feels the court has erred and should reconsider the order. Reuter 

OKC <OKC> SAYS APPEALS COURT UPHOLDS RULING

OKC Limited Partnership said the Fifth Circuit U.S. Court of Appeals has affirmed a partial summary judgment renedered against it and for Phillips Petroleum Co <P> by the U.S. District Court for the Eastern District of Louisiana. OKC said it plans to seek a rehearing. The company said Phillips is due 21.5 mln dlrs plus interest to date under the trial court judgment, and OKC has 14.0 mln dlrs in reserves set aside to cover the loss. It said it has made the necessary financial arrangements to provide for the total amount of the judgment. OKC said the court found no support for OKC's contention that there was a mutual mistake between it and Phillips' Aminoil subsidiary that required the reforming of a farmout agreement. Reuter 

CENTRUST SAVINGS <DLP> TO RECAPITALIZE STOCK

Centrust Savings Bank said it will recapitalize its common stock at the close of business today, converting each share of outstanding common into 0.5 share of common and 0.5 share of series one participating stock. Centrust said its shareholders previously approved the recapitalization at a meeting held on February 20, 1987. Centrust said the series one stock, a newly created series of Centrust's capital stock, has enhanced voting rights versus the common stock. Series one holders generally will vote to elect 75 pct of the board of directors, while common shareholders will elect 25 pct, Centrust said. CenTrust added that the common stock will have the right to vote along with the series one as a single class for the election of 75 pct of the board only if the number of outstanding "high voting stock," including the series one, falls below a certain percentage of outstanding shares of all classes and series of voting stock. CenTrust said the common stock gets one vote per share, the series one gets ten votes per share and there is separate class voting on some matters. CenTrust said series one dividends will be lower than common stock dividends until April 1, 1992. Also the series one will have limited preferential dividend and liquidation rights and will be convertible into common stock. Both series one and the recapitalized common stock shares are scheduled to begin trading on the American Stock Exchange on March 23, 1987. Reuter 

BANKS HAD EXCESS POSITIONS WITH VW - NEWSLETTER

A financial newsletter which reported last November that car maker Volkswagen AG <VOWG.F> lost large sums in currency transactions alleged that unnamed banks had circumvented banking regulations with help from VW's foreign exchange department. VW had no immediate comment and there was nothing in the report by the newsletter, the Platow Brief, to link its new allegations with a suspected currency swindle at VW which is now being investigated by a prosecutor. VW said this month that it had had to make provision for possible losses up to 480 mln marks in the possible currency fraud. A spokesman for the Federal Banking Supervisory Office in West Berlin said the office was aware that the newsletter had made the new allegations and would follow this with interest. Platow Brief said around 16 mainly foreign banks based in West Germany had "parked" excess open positions in currency trading with VW's foreign exchange department. Under West German banking law, banks may not end a trading day with open positions totalling more than 30 pct of their capital. During the day banks buy and sell currencies, usually aiming to match up all deals by the end and balance their books. Some traders who take a view on how currencies will move may prefer to leave certain positions open, a speculative situation that the German regulations are designed to limit. According to Platow Brief, some traders apparently were getting round the regulation by getting VW to buy or sell currencies and hold them temporarily so that their books were squared. Up to 100 mln dlrs was sometimes involved. Non-bank corporations are not covered by the restrictions, imposed after a bank crash in 1974 to protect bank depositors. Breaches of the Banking Law in this way can be punished by a fine for the dealers involved, and in extreme cases by removal of the managers, if their active involvement is proved. But the Federal Banking Supervisory Office said it first had to be established how far, if at all, regulations were breached. The suspected VW currency swindle meanwhile involved operations to protect the company against fluctuations in the value of the dollar, VW spoksmen have said. Some operations to hedge against changes in currency values were not completed, meaning VW stood to lose money. A senior executive has been fired and several other people suspended, while a prosecutor is looking into the matter. REUTER 

ANALYST SAYS USSR WINTER GRAINS HURT BY WEATHER

The Soviet Union's winter grain crop is likely to have suffered losses due to dry planting conditions last fall and severe cold this winter, an analyst of world weather and crop conditions said. Grain analyst and meteorologist Gail Martell, author of the EF Hutton publication "Global Crop News," said in her latest report that the Soviets may import more grain, possibly wheat, from the U.S. due to potential crop damage. "Compared with last year, the outlook (for the Soviet winter grain crop) is far more pessimistic," she said. "But it's still too early to talk about disastrous losses. A lot will depend on spring weather, not only for the outcome of the troubled winter grain crop, but also for spring planting." Martell said the dry weather conditions last fall probably prevented optimal seed germination for winter grains. Key wheat growing areas of the southern Ukraine and North Caucasus received on 25-35 pct of autumn precipitation, she said. The bitter winter cold temperatures -- which broke record lows that had stood for four decades -- also may have taken its toll on Soviet winter crops, she said. However, she noted that most of the southern grain belt had ample snow cover, which should have well-insulated the majority of crop areas from severe frost damage. The USSR has already bought 20 to 21 mln tonnes of grains in the July 1986/June 1987 marketing year, primarily from Canada, the European Community, Argentina and Australia, Martell said. She cited a number of reasons besides possible crop problems that might point to additional Soviet import demand. Last fall's dry weather may limit livestock grazing on moisture-depleted pastures, while the cold winter weather necessitated supplemental feeding to keep livestock healthy. Martell was also skeptical of a Soviet claim for a 1986 grain harvest of 210 mln tonnes, and said the Chernobyl accident may have contaminated more grain than originally thought and have to be made up with imports. However, she said the U.S. remains a supplier of last resort for the Soviet Union, noting that the Soviets have only just recently begun their first U.S. grain purchases of the 1986/87 season by buying 2.25 mln tonnes of corn. Martell cited USDA statistics showing that since the 1980 grain embargo the U.S. is only a major supplier of grain to the USSR during years of heavy Soviet demand. In 1984/85, the U.S. supplied 41 pct of record Soviet grain imports of 55.5 mln tonnes. But in 1985/86, the Soviet Union bought 29.9 mln tonnes of grain and turned to the U.S. for only 24 pct of that total. While the USDA Soviet import target for grain for 1986/87 was 22 mln tonnes, many U.S. grain analysts have revised their estimates of Soviet imports up to 25-28 mln tonnes, she said. Reuter 

INTEGRATED GENERICS <IGN> MAY SELL 10 PCT OF UNIT

Integrated Generics Inc said it is discussing with an unnamed pharmaceutical distributor the sale of 10 pct of its A.N.D.A. Development Corp subsidiary for 200,000 dlrs. Integrated said its subsidiary, Biopharmaceutics, is negotiating with the same unnamed distributor to sell it five prescription drugs. The company said it can release no other details at this time. Reuter 

MORGAN STANLEY <MS> HAS MARKET-ON-CLOSE ORDERS

Morgan Stanley and Co <MS> said it entered market-on-close orders totaling 1.1 billion dlrs for stocks in the Major Market Index and Standard and Poor's 500 stock index. Morgan Stanley said its orders were entered in accordance with Securities and Exchange Commission and New York Stock Exchange requirements. The firm did not specify the nature of its orders. Participants in the index futures markets said investors have been betting all day that the stock market will finish sharply higher but few were willing to make a firm prediction. Reuter 

MEXICO'S RESERVES REACH EIGHT BILLION DLRS

Additional capital inflows of 1.5 billion dlrs so far this year have boosted Mexico's reserves to about eight billion dlrs, director of public credit Angel Gurria told reporters. Money has been coming back to Mexico because of improved investor confidence and because a tight monetray policy has forced credit-starved industries to repatriate capital. Inflows totalled a billion dlrs in fourth-quarter 1986. Gurria said Mexico is not accumulating reserves for the sake of it. He said its new loans will increase the pool of funds available for badly needed investment. Once the first tranche of its new six billion dlr loan is drawn down in the second quarter, Mexico will still only have enough reserves to pay for imports and debt service for four or five months, Gurria noted. Nevertheless, Gurria said Mexico does not expect to draw on the commercial banks' 1.2 billion dlr investment-support contingency facility. That money will be available until April 1988 if Mexico's export receipts and the price of oil fall below certain levels. But Mexico failed to qualify for the first two drawings totalling 451 mln dlrs, and Gurria said today, "We expect we'll never have to use it." Gurria said Mexico will know by June whether it can draw on the second contingency facility included in the bank financing package - a 500 mln dlr growth co-financing loan with the World Bank. Finance minister Gustavo Petricioli said he had signed yesterday a 250 mln dlr loan with the World Bank to support the development of exports of manufactured goods. He also said the first 250 mln dlr tranche of a one billion dlr loan from the Japanese government to support steel, oil and export promotion will be disbursed at the end of the month. Mexico is also due to make the third drawing from its International Monetary Fund standby credit in the next few days based on a successful review of end-1986 economic results. Petricioli said Mexico is in the final stages of discussions which will determine quantitative economic targets for 1987 which will allow it to continue to draw from the IMF for the rest of 1987. Petricioli reported that Mexico has so far concluded eight bilateral accords with government creditors within the Paris Club. Sixteen governments signed the Paris Club umbrella agreement last September, which restructured 1.8 billion dlrs of official debt, and Petricioli said he hopes to finalize pacts with the remaining eight countries in the next few weeks. In keeping with the spirit of the September agreement, he said all countries from the Organization of Economic Cooperation and Development have continued to provide export credit facilities for Mexico, despite the debt restructuring. Reuter 

FIRST INTERSTATE BANCORP <I> FILES DEBT OFFER

First Interstate Bancorp said it has filed a shelf registration with the Securities and Exchange Commission for up to 1.50 billion dlrs principal amount of its debt securities. The filing consists of 1.00 billion dlrs of senior debt securities and 500 mln dlrs of subordinated debt securities, including capital securities. The securities may be offered from time to time through underwriters or by the company directly, or through agents, it said. First Interstate said net proceeds would be used principally to fund investments in, or extensions of credit to, the company's subsidiaries, or to repay loans incurred for such purposes. It called the filing part of the company's "regularly scheduled funding activities." First Interstate said the filing brings to 5.45 billion dlrs the total amount of debt securities covered under this and eight earlier shelf registrations. Reuter 

NAVISTAR <NAV> UP ON HIGHER EARNINGS OPINION

Navistar International Corp's stock rose after brokerage house Sanford C. Bernstein and Co raised its earnings estimate of the company based on expectations of better truck orders and truck tonnage, traders said. Navistar led the active list with a gain of 1/4 to 7-1/4 on volume of 4.2 mln shares. Traders familiar with the opinion said that David Eisenberg, director of Sanford C. Bernstein and Co's institutional strategy committee, raised his earnings estimates to 80 cts a share for the current fiscal year ending in October. He expects Navistar to earn 1.20 dlrs a share next year. In 1986, the company lost 14 cts a share. Eisenberg was unavailable for comment. Reuter 

ICN PHARMACEUTICALS <ICN> SEEKING ACQUISITION

ICN Pharmaceuticals Inc has about 500 mln dlrs in cash and another 1.50 billion dlrs in available credit, which it intends to use to buy a pharmaceutical company, Chairman Milan Panic said. At the company's annual meeting, he said an acquisition could take place in the next 24 months. "The company has nearly two billion dlrs available for acquisition today," Panic said, adding, "We are investigating a number of companies." One company being studied could possibly be acquired on a friendly basis, he said. Panic also said he intends to seek board approval today to repurchase up to three mln ICN common shares. Discussing the possibility of an acquisition, Panic said the such a purchase is necessary because ICN's current marketing capability would not be sufficient to support distribution of the company's products, given ICN's expectations for market growth worldwide. ICN's principal product is ribavirin, also known as Virazole. The drug is marketed in a number of countries and described as a broad-based anti-viral. The company has said its possible applications include treatment of some types of hepatitis, herpes, influenza, childhood diseases and hemorrhagic fevers. ICN has been the focus of consirable investor attention in recent months because of Virazole, which has undergone clinical trials as a possible treatment of some AIDS-related diseases. Panic said today he would not discuss the drug with regard to AIDS until the Food and Drug Administration completes its review of data submitted by the company. He said an investigation of the drug being conducted by a House Subcommittee is continuing. The subcommittee and the FDA have acknowledged they are conducting separate investigations to determine whether or not ICN witheld data from the FDA on adverse reactions to the drug. Virazole is approved for marketing in the U.S. in aerosol form as a treatment for an infection that strikes infants, called respiratory syncytial virus. Reuter 

CANADA COMMITTEE SEEKS LOWER CREDIT CARD RATES

The all-party House of Commons Finance Committee has unanimously called for a "substantial" cut in credit card interest rates charged by banks and other financial institutions. In a report, the committee recommended that if action is not taken soon, the government should investigate whether there is "anti-competitive behaviour" among the banks. Minister of State for Finance Tom Hockin told the Commons prior to the release of the report he favored a cut in the rates and promised to act quickly on its recommendations. The committee said interest rates should be lowered to no more than the 15.9 pct per annum level announced recently by the Toronto Dominion Bank. Rates on other bank cards range from 18 to 21 pct and to 24 to 28 pct on gasoline and department store cards. At a news conference, committee members said they would call for a legislated rate ceiling if the banks do not take action quickly. "I would be unhappy if they didn't make an announcement next week," said Committee Chairman Don Blenkarn, also a member of the ruling Progressive Conservative Party. New Democratic Party member Michael Cassidy said, "I hope the banks see the writing on the wall and take appropriate action." The group did recommend legislation be enacted to ensure a uniform method of calculating interest on unpaid balances and that a grace period be allowed for new purchases. Reuter 

JUSTIN INDUSTRIES INC <JSTN> SETS DIVIDEND

Qtly div 10 cts vs 10 cts prior Pay April 10 Record March 27 Reuter 

U.S. EXPORTERS REPORT 150,000 TONNES CORN CORN SWITCHED FROM UNKNOWN TO USSR FOR 1986/87

BOEING <BA> WINS NASA CONTRACT

Boeing Co said the National Aeronautics and Space Administration has selected Boeing to operate its computational mission services at the Marshall Space Flight Center in Huntsville. Boeing said it will provide NASA engineers and scientists with management, personnel, equipment, materials and services to aid the operations of such projects as Spacelab, the Space Shuttle and the proposed Space Station. It said it will also provide program management support, mission support, systems engineering, computer systems services, applications software and hardware maintenance. Boeing said the cost-plus-award-fee contract has an initial performance period of one year beginning in May 1987, with nine additional one-year options. The proposed cost for the first five years is about 114 mln dlrs, Boeing said. Boeing said <New Technology Inc> and Unisys Corp <UIS> will work with Boeing on the contract as major subcontractors. Reuter 

SECURITY PACIFIC <SPC> UNIT OFFERS CERTIFICATES

Security Pacific Corp's Security Pacific Merchant Bank said acting as lead manager it has offered 270 mln dlrs in 30-year and 35 mln dlrs in 15-year mortgage pass-through certificates. The offering is the second this year under an 800-mln-dlr shelf registration. The first was for 310 mln dlrs. The mortgages were originated by Security Pacific in California. The offering is co-managed by Kidder, Peabody and Co and Shearson Lehman Brothers. Reuter 

MERRY LAND AND INVESTMENT <MERY> TO OFFER STOCK

Merry Land and Investment Co Inc said it will offer two million shares of common stock for sale. Merry Land said it filed a registration statement with the Security and Exchange Commission. It also said the sale will be offered through an underwriting group managed by <Johnson, Lane, Space, Smith and Co Inc>, and Interstate Securities Corp <IS>. Proceeds will be used to reduce short-term debt, the company said. Reuter 

BANKS OF IOWA <BIOW> PRIVATELY PLACES STOCK

Banks of Iowa Inc <biow> said it has sold 254,608 common shares at 51.50 dlrs each to a group of institutional investors through a private placement. In connection with the stock sale, the company said, it reserved the right to sell privately up to an additional 133,741 common shares at the same price before March 28. It said the Chicago Corp acted as placement agent for this transaction. Banks of Iowa had 2.2 mln shares outstanding prior to the sale, a spokesman said. Reuter 

SCHOLASTIC INC <SCHL> 3RD QTR FEB 28 NET

Shr 1.55 dlrs vs 70 cts Net 3,409,000 vs 1,455,000 Rev 54.1 mln vs 45.3 mln Nine months Shr 1.60 dlrs vs 10 cts Net 3,517,000 vs 211,000 Rev 144.4 mln vs 127.0 mln NOTE: Qtr net includes extraordinary gain of 1.2 mln dlrs, versus 155,000 dlrs for fiscal 1986's third quarter, and a non-recurring pre-tax gain of 720,000 dlrs. Reuter 

KLEINWORT BENSON <KBA> UNIT SETS FIRST DIVIDEND

Kleinwort Benson International Investment Ltd's subsidiary, Kleinwort Benson Australian Income Fund, a closed end management investment company, declared its first quarterly dividend of 36.5 cts payable April 16 to shareholders of record April 1. Reuter 

G-10 FINANCE OFFICIALS DISCUSS DEBT, CURRENCIES

Deputy Finance Ministers from the Group of 10 leading western industrialised countries met here to discuss the world debt crisis, trade imbalances and currency stability today following last month's Paris monetary accord, sources close to the talks said. The officials met at the offices of the International Monetary Fund (IMF) to discuss broad aspects of world monetary policy in preparation for the IMF's interim committee meeting in Washington in April. The talks were the first high-level international review of the monetary situation since the accord last month reached by the U.S., West Germany, France, Britain, Japan and Canada to stabilise world currency markets at around present levels following the 40 pct slide in the dollar since mid-1985. Other countries represented at today's talks were Italy, which refused to attend last month's meeting on the grounds that it was being excluded from the real discussions, the Netherlands, Belgium and Switzerland. Many of the officials had met earlier today and yesterday within the framework of the Organisation for Economic Cooperation and Development (OECD) to review the slow progress being made in cutting the record 170 billion dlr U.S. Trade deficit and persuading West Germany and Japan to open their economies to more foreign imports. Reuter 

CCC GUARANTEES TO TURKEY SWITCHED TO MEALS-USDA

The Commodity Credit Corporation, CCC, has reallocated 15.0 mln dlrs in credit guarantees to Turkey previously earmarked for sales of U.S. oilseeds to provide coverage for sales of U.S. protein meals in fiscal year 1987, the U.S. Agriculture Department said. The department said the action reduces the guarantee line authorized for sales of oilseeds to 5.0 mln dlrs from 20.0 mln dlrs and creates the new line for protein meals. All sales under the credit lines must be registered and exports completed by September 30, 1987, it said. Reuter 

EC AGREES TO REDUCE DIESEL EXHAUST EMISSIONS

The European Community (EC) agreed on new rules to cut diesel exhaust emissions from trucks and buses in an attempt to reduce air pollution threatening vast stretches of the region's forests. Diplomats said EC environment ministers meeting here agreed member states would have to reduce by 20 pct over the next few years the emission of nitrogen oxide, widely seen as the main source of acid rain endangering forests and lakes. The reduction would be compulsory for heavy vehicles, with tougher standards imposed for new models from April 1988 and for all new vehicles from October 1990. The EC's executive Commission says the emission level of nitrogen oxide was expected to drop to 2.4 mln tonnes a year from three mln tonnes within the 12-nation Community if all heavy vehicles met the new standards. There are an estimated nine mln trucks and buses in use in the EC, according to Commission figures. The ministers also gave West Germany a go-ahead to move towards a ban on the sale of leaded regular petrol, after Bonn requested permission to do so to encourage the use of low-pollution cars, diplomats said. Reuter 

VERNITRON CORP <VRN> 4TH QTR AND YEAR LOSS

Oper shr loss 49 cts vs loss 10 cts Oper net loss 3,014,000 vs loss 656,000 Revs 22.7 mln vs 23.6 mln 12 mths Oper shr loss 19 cts vs profit 40 cts Oper net loss 1,142,000 vs profit 2,476,000 Revs 93.3 mln vs 99.0 mln NOTE: qtr 1986 and prior qtr excludes loss discontinued operations 2,441,000 and 4,078,000, respectively. Year 1986 and prior excludes loss discontinued operations 3,509,000 and 5,278,000, respectively. qtr and year 1986 excludes tax loss 1,557,000 and loss 151,000, respectively. qtr and year prior excludes tax gain 833,000 and 3,346,000, respectively. Reuter 

GOODY PRODUCTS INC <GOOD> YEAR END OPER NET

Oper shr 1.21 vs 88 cts Oper net 7,767,000 vs 5,494,000 Revs 163.7 mln vs 133.5 mln NOTE: 1986 and 1985 oper net excludes a loss of 1,332,000 dlrs and a profit of 319,000 dlrs, respectively, for discontinued operations. Earnings per shr are restated to reflect 3-for-2 stock split effective July one, 1986. Reuter 

VMS MORTGAGE INVESTORS L.P. <VMLPZ> MONTLY DIV

DIst nine cts vs nine cts prior Payable May 14 Record April one Reuter 

PEPS BOYS-MANNY, MOE AND JACK <PBY> SET PAYOUT

Qtly div 5.5 cts vs 5.5 cts prior Pay April 27 Record April one. Reuter 

CCC ACCEPTS EXPORT BONUS ON SEMOLINA TO EGYPT

The Commodity Credit Corporation, CCC, has accepted a bid for an export bonus to cover a sale of 6,000 tonnes of semolina to Egypt, the U.S. Agriculture Department said. The department said the semolina is for shipment April-October, 1987, and the bonus awarded was 224.87 dlrs per tonne. The bonus was made to International Multifoods Corp and will paid to the exporter in the form of commodities from CCC stocks, the department said. An additional 7,000 tonnes of semolina are still available to Egypt under the Export Enhancement Program initiative announced August 1, 1986, it said. Reuter 

VMS MORTGAGE INVESTORS <VMTGZ> RAISES PAYOUT

VMS Mortgage Investors LP II said it raised its first quarter 1987 cash dividend to 21 cts from 20 cts the prior quarter payable May 14, 1987, to shareholders of record April One, 1987. Reuter 

REGENCY CRUISES <SHIP> SELLS SHIP INTEREST

Regency Cruises Inc said it agreed to sell a 40 pct interest in the corporation that owns the M/V Regent Sea cruise ship for 2.1 mln dlrs to Monmouth International SA, which owns the other 60 pct. The company said it also extended a 1.7 mln dlr secured loan to Monmouth to finance completion of the renovation of another vessel, the M/V Regent Star, which is scheduled to begin operating in late June. Regency Cruises, which operates both ships, received a five-year extension, to November 1995, to the Regent Sea's original charter agreement, it said. It also received a reduction, to 600,000 dlrs from 1.6 mln dlrs, of its total charter guarantee for the Regent Sea and Regent Star. Regency also reported 1986 earnings of 5,695,000 dlrs or 37 cts a share on revenues of 40.9 mln dlrs. It began operations in November 1985. In addition, the company said its bank, Irving Bank Corp <V>, agreed to waive a one mln dlr counter guarantee for the bank to provide a 2.6 mln dlrs guarantee for Regency's Federal Maritime Commission bond. The company said after April 3 the exercise price of its warrants will return to two dlrs until they expire April 21. The price had been reduced to 1.50 dlrs for the three weeks ending April 3. Reuter 

CANADIAN MANUFACTURING SHIPMENTS FALL IN MONTH

Shipments of products by Canadian manufacturers declined by 1.5 pct in January to 21.08 billion dlrs, seasonally adjusted, led by a slowdown in transportation equipment, Statistics Canada said. In December orders rose 2.8 pct. The federal agency said new orders fell 4.0 pct following a 4.5 pct increase in December. Inventories fell to 33.71 billion dlrs from 34.00 billion dlrs the previous month. Reuter 

FREIGHT, INSURANCE PROPOSED FOR CCC SALES - USDA

the U.S. Agriculture Department is proposing to permit coverage of freight cost and marine and war risk insurance for sales of all agricultural commodities sold on credit terms under the Commodity Credit Corporation's, CCC, credit guarantee programs. The proposal only applies to commodities that are sold by exporters on a cost and freight, C and F, or cost, insurance and freight, CIF, basis, since these costs would be included in the exporter's sale price to the foreign buyer, it said. Under current programs, freight costs can be covered only for export sales of U.S. breeding animals. It asked for comments on the proposal by April 20. Reuter 

CCC ACCEPTS EXPORT BONUS FOR CATTLE TO EGYPT

The U.S. Commodity Credit Corporation (CCC) has accepted a bid for an export bonus to cover a sale of 186 head of dairy cattle to Egypt, the U.S. Agriculture Department said. The department said the cattle are for delivery May 7-June 7, 1987, and the bonus awarded was 1,888.06 dlrs per head. The bonus was made to First Interstate Trading Co and will be paid to the exporter in the form of commodities from CCC stocks, the department said. An additional 7,959 head of dairy cattle are still available to Egypt under the Export Enhancement Program initiative announced September 12, 1986, it said. Reuter 

CLARK EQUIPMENT <CKL> BUYS 1.3 MLN SHARES

Clark Equipment Co said it has purchased 1,339,000 shares of its common stock from an investor group led by Arthur M. Goldberg for 26.375 dlrs a share. It said the purchase reduces the number of shares of Clark common stock to be purchased under its stock repurchase plan announced March 10. At the time the company said it would buy back 3.0 mln shares, or 16 pct of the outstanding stock. Clark Equipment also said the investor group agreed to enter into a standstill agreement which prohibits members of the group from purchasing shares of voting securities of Clark for 10 years. Reuter 

YANKEE COS <YNK> UNIT TO SELL ASSSETS

Yankee Cos Inc's Eskey Inc <ESK> subsidiary said it reached an agreement in principle to sell its Eskey's Yale E. Key Inc subsidiary to a new concern formed by Key's management and a private investor for about 15.5 mln dlrs. As part of sale, Eskey said the buyers will assume the 14.5 mln dlrs of publicly held Eskey 10-3/4 pct debentures due 2003. It said the debentures will continue to be converted into Yankee preferred. The remainder of the price will be a one mln dlr note to Eskey. Yankee said the sale will result in a loss of 1.5 mln dlrs. Reuter 

COURT APPROVES LTV <QLTV> BANK CREDIT AGREEMENT

LTV Corp said a credit agreement between the company and its 22-member bank group has been approved by the U.S. Bankruptcy Court for the Southern District of New York. The company said the agreement provides an additional 100 mln dlrs of credit that may be borrowed by the company or used to cover the issuance of new letters of credit. Under athe agreement, LTV said, it will convert about 435 mln dlrs of outstanding secured debt of certain subsidiaries into a new revolving credit facility. LTV said the bank credit agreement also provides for the funding, on a revolving credit basis, of about 160 mln dlrs of outstanding secured lines of credit in the event such letters of credit should be drawn in the future. The company said it has the option under the agreement to fund the borrowings at the prime reate or at rates related to certificates of deposit or London Interbank Borrowing Rates. It said outstanding loans, as well as amounts which could be drawns under issued letters of credit, will be securited by accounts receivable and inventories of certain LTV subsidiaries. Reuter 

WENDY'S <WEN> DECLNES COMMENT ON MARKET RUMORS

Wendy's International Inc declined to comment on vague rumors by traders that it might be a takeover target. Wendy's is currently trading up one at 11-3/4 on turnover of more than 1.6 mln shares. A Wendy's spokesman said it was corporate policy not to comment on market rumors. He further declined to attribute active trading in Wendy's stock to a published report which stated Wall Street professionals believe that Wendy's was possibly being studied by Coca Cola Co (KO) with view to a possible acquisition. Reuter 

GOODY <GOOD> TO SELL UNIT TO UNION CAMP <UCC>

Goody Products Inc said it entered into an agreement to sell its J. and P.B. Myers packaging business to Union Camp Corp to focus on its consumer products and automated distribution system businesses. Terms of the agreement were not disclosed. Reuter 

CHAMPION PARTS<CREB> ASKS DECLARATORY JUDGMENT

Champion Parts Rebuilders Inc said it asked the Federal District Court in Chicago for a declaratory judgment upholding its recent 5.4 mln dlr sale of common shares and warrants to Echlin Inc <ECH>. Champion said in hearings Thursday morning before the federal judge on its lawsuit charging federal securities law violations against Cormier Corp, Odilon Cormier, Morris Navon and other defendants, the Cormier-Navon defendants indicated they would challenge the transaction. Champion's suit claims that various Champion investors alligned themselves with Cormier and Navon who failed to disclose properly under federal laws that they were acting in concert and they intended to spin off parts of the company and sell the balance within two years once they got control. Reuter 

CYACQ RAISES OFFER FOR CYCLOPS TO 92.50 DLRS/SHARE FROM 80 DLRS

GREAT COUNTRY BANK <GCBK> 3RD QTR NET

Qtr ends Feb 28 Shr 53 cts vs N/A Net 1,165,000 vs 575,000 Nine mths Shr 1.54 dlrs vs N/A Net 3,363,000 vs 1,535,000 Assets 375.2 mln vs 320.7 mln Deposits 313.8 mln vs 264.2 mln Loans 286.3 mln vs 235.9 mln NOTE: earnings per share data not presented for 1986 as Great Country Bank converted from a mutual to a capital stock savings bank on Jan 14, 1986. Such information is misleading and inappropriate, the company said. Reuter 

U.S. BUSINESS LOANS FALL 660 MLN DLRS IN MARCH 11 WEEK, FED SAYS

EC AGREES REDUCTION OF DIESEL EXHAUST EMISSIONS

The European Community (EC) agreed tough new rules to cut diesel exhaust emissions from trucks and buses in an attempt to reduce air pollution threatening vast stretches of the region's forests. Diplomats said EC environment ministers meeting here agreed member states would have to reduce by 20 pct over the next few years the emission of nitrogen oxide, widely seen as the main source of acid rain endangering forests and lakes. The reduction would be compulsory for heavy vehicles, with tougher standards imposed for new models from April 1988 and for all new vehicles from October 1990. The EC's executive Commission says the emission level of nitrogen oxide was expected to drop to 2.4 mln tonnes a year from three mln tonnes within the 12-nation Community if all heavy vehicles applied to the new standards. There are an estimated nine mln lorries and buses in use in the EC, according to Commission figures. The ministers also gave West Germany a go-ahead to move towards a ban on the sale of leaded regular petrol, after Bonn requested permission to do so to encourage the use of low-pollution cars, diplomats said. West Germany will still need ministers' final approval for such a plan. Diplomats said this was expected when EC environment ministers meet next on May 21. But the ministers added that the go-ahead for West Germany did not mean there would automatically follow a Community-wide ban on the sale of regular leaded petrol. Bonn intends to keep leaded premium petrol pumps, diplomats said. They added that, of the 97 mln cars in the EC, only 20 mln now ran on regular leaded petrol and these would risk no damage if they switched over to premium leaded petrol. Under EC law, ministers have to give member states special permission if they wish to be exempt from Community competition laws. This would be the case if West Germany were to implement a ban on the sale of leaded regular petrol. Reuter 

PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC

The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Weyerhaeuser Co <WY> - Offering of four mln shares of convertible exchangeable preference shares through Morgan Stanley and Co Inc. Kansas City Power and Light Co <KLT> - Shelf offering of up to 100 mln dlrs of mortgage bonds. J and J Snack Foods Corp - Initial public offering of 25 mln dlrs of convertible subordinated debentures due April 1, 2012. Federal Paper Board Co Inc <FBO> - Offering of 2.8 mln shares of cumulative convertible preferred stock through an underwriting group led by First Boston Corp. Virginia Electric and Power Co, subsidiary of Dominion Resources Inc <D> - Shelf offering of up to 1,350,000 shares of 100 dlr preferred stock. Reuter 

MARCUS <MRCS> VOTES 50 PCT STOCK DIVIDEND

Marcus Corp said its board voted a 50 pct stock dividend to be distributed May 1, record April 15. It said the dividend applies equally to holders of its common stock and Class B common. Reuter 

VMS MORTGAGE <VMTGZ> CASH DISTRIBUTION RISES

VMS Mortgage Investors L.P. II said it declared a first-quarter 1987 cash distribution of 21 cts a depositary unit, up five pct from the prior quarter. It said the distribution will be payable May 14, record January 1. Reuter 

PICO <PPI>, ANIXTER GET TELE-COMM <TCOM> ORDER

Pico Products Inc and <Anixter Communications> jointly announced that they received a purchase order from Tele-Communications Inc, for pay TV security products to be included in Tele-Comm's on-site control systems. Terms were not disclosed. Reuter 

AUDIO/VIDEO <AVA>SWEETENS BID FOR CYCLOPS <CYL>

An investment group led by Audio/Video Affiliates Inc said it raised its tender offer to acquire Cyclops Corp to 92.50 dlrs a share from 80 dlrs a share. The group, Cyacq Acquisition Corp, also said it extended the offer until April three, from March 20. The group said it added several conditions to its offer, including receipt of all non-public information about Cyclops that was provided to <Dixons Group PLC> in connection with Dixon's competing tender offer for Cyclops. Cyacq's sweetened offer, totaling about 398 mln dlrs, tops Dixon's offer of 92.25 dlrs a share, or about 388 mln dlrs. On Wednesday Dixon said it had bought 54 pct of Cyclops' 4.3 mln shares outstanding, boosting its stake in the company to 56 pct. Earlier today, however, the Securities and Exchange Commisssion ordered Dixons to extended its tender offer until March 24. Cyacq said it hopes Cyclops shareholders "will withdraw previously tendered shares from Dixons' tender offer to take advantage of Cyacq's higher offer." The SEC's order came after Cyacq filed suit to block Dixons from taking control of Cyclops and to force an extension of Dixons' tender offer. A Cyclops spokeswoman said the company had no immediate comment on the sweetened bid from Cyacq. Cyacq said its new offer is also subject to Cyclops rescinding any agreements with Dixons under which the U.K.-based firm would receive "break-up fees" or expenses from Cyclops or could buy Cyclops common stock from the Pittsburgh-based company. Reuter 

MOODY'S DOWNGRADES BAKER INTERNATIONAL AND UPGRADES HUGHES TOOL

EMERALD HOMES <EHP> SETS INITIAL DISTRIBUTION

Emerald Homes L.P. said its general partners declared an initial 30-ct per unit distribution payable May 15 to unitholders of record March 31. Emerald made its initial public offering February 6. Reuter 

U.S. BUSINESS LOANS FALL 660 MLN DLRS

Business loans on the books of major U.S. banks, excluding acceptances, fell 660 mln dlrs to 277.93 billion dlrs in the week ended March 11, the Federal Reserve Board said. The Fed said that business loans including acceptances declined 492 mln dlrs to 280.56 billion dlrs. Reuter 

TEXAS CAPITAL BANCSHARES UNIT FIRST TO FILE

<Texas Capital Bancshares> said its subsidiary, Texas Capital Bank-Westwood, was the first Texas bank to file for a statewide branch to be located in Austin. The company said it filed with the Comptroller of the Currency under a 1986 state constitutional amendment allowing Texas banks to establish a limit of three branches within its home county. Reuter 

WATER SPORTS NETWORK BUYS DEBT FROM NTN

<Water Sports Network> said it purchased 750,000 dlrs in convertible debentures from <NTN Communications Inc>. The companies said they are exploring ways to mutually market the programs and properties of each company. Reuter 

JEFFERIES MAKES MARKET IN CYCLOPS <CYL>

Jefferies and Co said it is making a market in the stock of Cyclops Corp at 92-1/2 to 95. Cyclops received a sweetened offer of 92.50 dlrs per share from Cyacq Acquisition Corp, led by Audio/Video Affiliates Inc <AVA>. Reuter 

BEI <BEIH> ACQUIRES IVEY-ROWTON AND ASSOCIATES

BEI Holdings Ltd said it acquired Ivey-Rowton and Associates, a Nashville, Tenn.-based bank marketing firm. Terms were not disclosed. Reuter 

LAC MINERALS <LAC> TO CLOSE LAKE SHORE MINE

LAC Minerals Ltd said it will suspend underground mining and exploration at its Lake Shore Mine at Kirkland Lake, Ontario, on April 30, pending results of a surface exploration drilling program. LAC said it does not expect the decision to affect earnings, but 44 employees will be affected. The company said it has completed mining the crown pillar which has produced 71,000 ounces of gold since 1983. In 1986, the mine produced 10,600 ounces. LAC said it will continue surface drilling in 1987 to determine if further underground exploration work is warranted. Reuter 

MULTI SOLUTIONS <MULT> UNIT ADDS CAPABILITY

Multi Solutions Inc's Multi Soft Inc <MSOF> announced Version 3.0 of Super-Link, its application development system for building cooperative peer-to-peer applications under CICS, TSO, VM/CMS and IDMS-DC. The release adds two new components to the Super-Link system and provides enhanced features and support for application connectivity on Digital's VAX computer line running VMS, the company said. Reuter 

SOUTHERN HOME SAVINGS BANK <SHSB> YEAR NET

Shr 1.86 dlrs vs 1.85 dlrs Net 1,923,304 vs 1,897,998 Reuter 

SUPER VALU <SVU> SETS LOWER CAPITAL SPENDING

Super Valu Stores Inc said its capital budget for the fiscal year beginning March One is 330 mln dlrs. It said it spent 363.7 mln dlrs last year, primarily because the previous year's budget included funding for such major projects as completely new distribution centers. It said the current budget provides for significant additions to a number of its new distribution centers, for upgrades in computer equipment, for 10 new ShopKo stores and 70 mln dlrs in financing for the company's independent retailer customers. Reuter 

SALOMON BROS SAID IT WAS SUBPOENAED BY SEC REGARDING FIREMAN'S FUND, AMERICAN EXPRESS

BINKS MFG CO <BIN> REGULAR DIVIDEND SET

Qtly div 25 cts vs 25 cts previously Pay April 17 Record March 30 Reuter 

FIRM SELLS ENTIRE ALLEGHENY INT'L <AG> STAKE

Southeastern Asset Management Inc and its two controlling shareholders said they sold their entire 5.6 pct stake in Allegheny International Inc. In a filing with the Securities and Exchange Commission, Southeastern, a Memphis, Tenn. investment advisor, said it sold the entire 604,000-share stake between March 13 and 16 at prices ranging from 24.25 to 24.625 dlrs each. Reuter 

JAPANESE FIRM HAS 10.7 PCT OF SHELDAUL <SHEL>

Sumitomo Bakelite Co Ltd, a Japanese company, told the Securities and Exchange Commission it has acquired 325,000 shares of Sheldahl Inc, or 10.7 pct of the total outstanding common stock. Sumitomo Bakelite said it bought the stock for 4.9 mln dlrs for investment purposes. Under an between Sumitomo Bakelite and Sheldahl, as long as its stake is more than five pct, Sumitomo said it has preemptive rights for 60 days following notice of issuance of new Sheldahl common stock. As long as its stake is over 10 pct, it said it is entitled to Sheldahl board representation. Reuter 

COMMONWEALTH EDISON CO <CWE> 12 MONTHS NET

Period ended Feb 28 Shr 4.66 dlrs vs 4.40 dlrs Net 1,048,884,000 vs 959,626,000 Revs 5.43 billion vs 5.04 billion Avg shrs 200,242,000 vs 191,840,000 NOTE: Per-share earnings reflect payment of preferred dividend requirements Reuter 

LATIN NATIONS CALL FOR ECONOMIC CO-OPERATION

Representatives from 26 Latin American countries ended a United Nations trade meeting here today with a call for greater economic integration between developing and industrialised countries. "(We) urge the international community to recognise the ... difficulties which confront the region," a statement released by the group, termed the San Jose Communique, said. The meeting was held under the auspices of the Latin American Economic System, CEPAL, a United Nations affiliate, and aimed to develop a joint regional position ahead of July's conference in Geneva of the United Nations Conference on Trade and Development, UNCTAD. The communique said Latin America's priority remained the need for sustained economic growth and for easier terms on its 400 billion dlrs external debt. Within that framework the region would be pressing in Geneva for more access to industrialised markets for its exports and for compensatory capital inflows when world prices for its mainly agricultural exports were low, it said. The communique also said the group would press for the generalised system of preferences -- easy entry terms for developing country exports -- to be expanded. UNCTAD was set up in 1964 to promote better international trading conditions for developing countries and help raise their standard of living. Reuter 

MOODY'S CUTS BAKER <BKO>, UPGRADES HUGHES <HT>

Moody's Investors Service Inc said it downgraded the debt ratings of Baker International Corp and upgraded Hughes Tool Co's debt. The actions affect a combined 662 mln dlrs of securities. Moody's said the anticipated merger of Baker and Hughes Tool into Baker Hughes Inc would result in increased financial leverage at a time of weak demand for the combined company's products and services. The agency cut the senior debt of Baker and its finance unit, Baker International Finance N.V., to Baa-1 from A-2. It affirmed Baker's Prime-2 commercial paper. Moody's upgraded Hughes Tool's senior debt to Baa-1 from B-2 and subordinated debt to Baa-2 from B-3. The rating agency said that a poor outlook for the oil services industry would pressure earnings and cash flow for Basker Hughes over the intermediate term. However, Moody's noted that the combined company would benefit from cost reductions and consolidations made possible by the merger. Also, the company's competitive position should be substantially strengthened by the merger, Moody's said. Reuter 

JOHN HANCOCK UNITS DUMP STAKE IN PRICE <PR>

Subsidiaries of John Hancock Mutual Life Insurance Co told the Securities and Exchange Commission they sold their entire 13.1 pct stake in Price Communications Corp back to the company. The Hancock subsidiaries said they sold their entire 1,627,603-share stake in Price Communications to the company for 11 dlrs a share on Feb 23. Reuter 

AMERICAN ELECTRIC <AEP> UNIT TO BUY BACK BONDS

Ohio Power Co, a unit of American Electric Power Co, said it will redeem 34.4 mln dlrs of its first mortgage bonds on June one. It will buy back at par 33 mln dlrs of its outstanding 10 pct bonds of 2016 and 1.4 mln dlrs of its outstanding 12-7/8 pct bonds due 2013. Also, the utility will pay accrued interest for the 10 pct series. Transfer books for both series will be closed at the close of business on April 10 to allow for selection by lot of the bonds to be redeemed, Ohio Power said. The books will be reopened around April 24 when redemtion notices are mailed. Reuter 

SALOMON INC <SB> SAID IT RECEIVED SUBPOENA

Salomon Inc's Salomon Brothers unit said the Securities and Exchange Commission subpoenaed its records with respect to Fireman's Fund Corp, American Express Co, Shearson Lehman Brothers Inc, Jefferies and Co and others. Salomon brothers co-managed a public offering by American Express of Fireman's Fund securities. Salomon said American Express' Shearson subsidiary was the lead manager and ran the books for the offering. Shearson and American Express were both subpoenaed for documents on certain transactions. American Express earlier said it was subpoenaed on transactions involving securities of American Express and Fireman's Fund, and Shearson was subpoenaed for documents on transactions with Jefferies and Co and others. Salomon co-managed the Fireman's Fund offering in 1986. Salomon said it intends to comply with the subpoena and cooperate with the Securities and Exchange Commission. It said it was unaware of the SEC investigation prior to yesterday. Yesterday, Boyd Jefferies, former chairman of Jefferies and Co, said he would plead guilty to two felony counts for securities law violations. A Salomon Brothers official said no individuals at the firm were subpoenaed. An American Express spokesman did not return phone calls. Reuter 

NIAGARA MOHAWK <NMK> TO CUT COSTS

Niagara Mohawk Corp said it is "cautiously optimistic" about results improvements for 1987 and said it is studying measures to cut operating costs. These measures include freezing management salaries, abolishing vacant positions and reducing overtime. A spokesman said the company had no current plans to lay off workers. The company declined to say how much the cost savings would amount to. A five year forecast is expected to be issued in early summer, a spokesperson said. The company said it has redeemed about 273 mln dlrs in high cost debt during 1986 and hopes to redeem more debt this year. For 1986, Niagara Mohawk's earnings per share fell to 2.71 dlrs from 2.88 dlrs in 1985.. The company said earnings reduced primarily as a result of a reduction early in 1986 in earnings return on equity allowed by the N.Y. State Public Service COmmission. Niagara said it is concerned about the continued lowering of authorized return and has reinforced petitions to grant a fair return on equity. Reuter