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ROSTENKOWSKI OPPOSES PROTECTIONIST TRADE BILL

House Ways and Means Committee Chairman Dan Rostenkowski said Congress must avoid a temptation to pass a protectionist trade bill this year. In remarks prepared for delivery before the National Press Club, Rostenkowski, D-Ill., predicted major trade legislation will be sent to President Reagan by the end of this year. But he warned that his "conciliatory message" on the trade bill did not mean he would oppose a proposal that would warn other countries their access to the American market would be curtailed unless they opened their markets to U.S. goods. "Complaints about (foreign trade) restraints are not a smoke screen for protectionism, they a plea for fairness," Rostenkowski said. "It is only reasonable to ask the nations that have denied us access to open up in return for continued freedom in the American market," he added. However, he said there would likely be changes in the market access proposal from the plan which cleared the House last year. That plan would have set a specific time table for foreign countries to ease import restraints or they would face a 25 pct cut in exports to the United States. Reuter 

CORRECTED - GM SEES RISE IN EUROPEAN SALES

General Motors hopes to sell between 7,000 and 8,000 North American-made vehicles in Europe this year, a five-fold rise over the year before, James Fry, vice- president of GM Overseas Distribution Corporation said. "The low dollar makes our prices very attractive," he told a news briefing before the opening of the Geneva Motor Show. "We would like to sell between 7,000 and 8,000 units in Europe for the year to August 1987," he told Reuters later. Officials said GM sold 1,500 North American-made vehicles in the 1986 model year. More 

IMTEC <IMTC> GETS MERGER OFFER

Imtec Inc said some shareholders of Computer Identics Inc <CIDN> have proposed a merger of the two companies. The company said the shareholders had previously expressed dissatisfaction with Computer Identics' management and had informed Computer Identics that the present board no longer had the support of a majority of shares held. It said the shareholders had called for the resignation of all but one of Computer Identics' directors and suggested that a new board pursue merger talks with Imtec. But Imtec said no merger talks havew yet taken place. Reuter 

KAY JEWELERS INC <KJI> 4TH QTR NET

Shr 1.62 dlrs vs 1.33 dlrs Net 10.3 mln vs 8,459,000 Revs 127.5 mln vs 95.7 mln Year Shr 1.52 dlrs vs 1.20 dlrs Net 9,669,000 vs 7,481,000 Revs 278.1 mln vs 232.00 mln Reuter 

ROSTENKOWSKI CALLS FOR U.S. DEFICIT CUT NEAR 36 BILLION DLRS

ICO PACT UNLIKELY BY AUTUMN - ITALIAN ADVISER

The prospects of the International Coffee Organization (ICO) reaching an agreement on coffee export quotas before September appear dim, Alberto Hesse, former president of the European Coffee Federation, said. "There is no real goodwill in certain delegations to go to quotas," Hesse, who advises the Italian Foreign Affairs Ministry on coffee issues, told Reuters. He declined to name the delegations. A special meeting between importing and exporting countries ended in a deadlock late yesterday after eight days of talks over how to set quotas. The ICO executive board will meet from March 30 to April 1 but the full council is not due to meet again until September. "I am not optimistic about an agreement soon," Hesse said. Reuter 

WALL STREET STOCKS/ANACOMP INC <AAC>

Anacomp Inc, one of the most actively traded NYSE issues, rose today as at least one analyst expected earnings to be boosted by its planned acquisition of a micrographics company. Anacomp rose 1/2 to 6-3/4 on volume of 950,000 shares after trading as high as seven earlier. Howard Harlow, analyst at Whale Securities Corp, said Anacomp's earnings for fiscal 1987 ending September 31 could be doubled to 80 cts a share from the 40 cts a share he had forecast before Anacomp agreed to buy DatagraphiX, a micrographics firm, from General Dynamics Corp <GD>. "The company can earn 80 cts a share in fiscal 1987, maybe as much as a dlr a share, because of DatagraphiX," Harlow said. "Most of the benefit will be in the fourth qtr because it will integrate the company in the second half." Anacomp's earnings will be less if it has problems integrating DatagraphiX, Harlow said. A spokesman at Anacomp said the company expects to complete its deal for DatagraphiX later this month. She would not say how much it will pay for DatagraphiX, but noted that DatagraphiX contributed 10 mln dlrs in earnings to General Dynamics on revenues of 239 mln dlrs in 1986. Harlow said a fellow analyst at Whale Securities estimates that Anacomp will pay between 100 mln dlrs to 150 mln dlrs for DatagraphiX. "The estimates on the street narrow it down to between 110 mln dlrs and 130 mln dlrs," Harlow added. Anacomp reported net of 2.8 mln dlrs or nine cts a share in its first qtr ended December 31, up from 301,000 dlrs or one ct a share. In Anacomp's fiscal 1986 it earned 4,073,000 dlrs or 13 cts a share. Whale Securities recommends buying the stock, Harlow said. Reuter 

CORRECTED - LIFETIME<LFT> TO BUY NIPPON LACE SAHRES

Lifetime Corp said it agreed to buy five mln shares or 16 pct of <Nippon Lace Co Ltd> for 3.28 dlrs a share, or 16.5 mln dlrs. It said it plans to enter the health care business in Japan. In addition, it said <Koba Electronics Co Ltd>, an affiliate of Nippon, will buy four mln unissued shares, or a 12 pct stake, of Lifetime for 20 mln dlrs or five dlrs a share. - Corrects to show Nippon's affiliate Koba buying stake in Lifetime. Reuter 

U.K. EXPORTS BODY GETS NEW EXECUTIVE DIRECTOR

Export Credits Guarantee Department has named Malcolm Stephens, director of export finance at Barclay's Bank Plc and a former career civil servant at ECGD for 17 years, to the post of executive director, a department spokesman said. Stephens replaces Jack Gill, who is retiring early aged 57. A drop in the ECGD's business volume and a rise in its debt to the Exchequer have led to criticism in Parliament in recent years. Stephens said the fall in business volume was a top convern, adding that the department may have to compete more aggressively with private insurance firms providing similar services. The department's annual report for the year ended March 31, 1986, showed exports insured by the department fell to 15.7 billion stg from 17.4 billion the year before, while its debt to the Exchequer almost doubled to 756 mln stg. Stephens said he had no specific list of changes. But among his chief concerns was the weakened condition of lesser developed countries and their ability to pay for their imports. The agency will have to review its policies on insuring export credits to lesser credits on a country by country basis, he said. "Large lump political risk insurance is the sort of thing we want to take a look at." "You have to try to look forward to see if you are simply in a peak and trough situation or it is a more long term thing," Stephens said, in response to a qustion about whether ECGD will strike more countries from its list of political risk insurance recipients. He noted that certain countries have already been removed from the list. REUTER 

OILS/FATS STOCKS SEEN FALLING SHARPLY IN 1986/87

Visible stocks of 17 oils and fats are probably peaking now and are likely to fall sharply by October 1 this year, the Oil World newsletter said. Oil World forecast that stocks of oils and fats may be cut to only 9.8 mln tonnes at the end of this season, compared with 10.6 mln a year earlier. Its survey covered 13 oils -- soy, cotton, groundnut, sun, rape, sesame, corn, olive, coconut, palmkernel, palm, lin and castor -- and four animal oils and fats -- butter, fish oil, lard and tallow/greases. Oil World's analysis predicted only a slight production increase of 0.5 mln tonnes in the year to end-September 1987, compared with increases of 3.6 mln and 4.0 mln tonnes in the previous two seasons. It said world consumption was continuing to rise. Unusually low prices prevailing since early 1986 had stimulated demand for both food and non-food purposes, it said. World consumption could increase by a record 2.8 mln tonnes to 71.8 mln tonnes this season and would be even higher if the Indian government did not artificially curb domestic demand. Oil World said it did not expect the European Community (EC) to introduce a vegetable oils tax, but if such a tax were introduced it would have a negative impact on EC consumption. Reuter 

COLOMBIA TRADERS SAY NEW COFFEE STRATEGY VITAL

Coffee producing countries must quickly map out a fresh common strategy following the failure of the International Coffee Organization, ICO, to reach agreement on export quotas, Gilberto Arango, president of Colombia's private coffee exporters' association, said. Arango told Reuters that the most intelligent thing now would be to seek a unifying stand from producers, including Brazil, in order to map out a strategy to defend prices. An ICO special meeting ended last night in London with exporting and consuming nations failing to agree on a resumption of export quotas, suspended one year ago after prices soared following a prolonged drought in Brazil. Arango said there would be no imminent catastrophe but predicted that over the short term prices would undoubtedly plummet. However, he said the market should also take into account evident factors such as Brazil's low stocks and the sale of the near totality of the Central American crop. Trade sources said Colombia's coffee was today quoted at 1.14 dlrs a lb in New York, its second lowest price in the past 10 years. Cardenas said these countries apparently fail to understand the true impact of such a failure for coffee producing nations as well as for industrialized countries. It is difficult to believe that while efforts are made to solve the problem of the developing world's external debt, decisions are being taken which cut earnings used for repaying those debts, he said. "In Colombia's case, we watch with consternation that, while we try to effectively combat drug trafficking, countries which support us in this fight seek to cut our jugular vein," Cardenas said. Reuter 

TENDER LOVING <TLCI>, STAFF <STAF> EXTEND PACT

Tender Loving Care Health Care Services Inc said it and Staff Buildiers Inc have extended the term of their merger agreement until May 31. Tender Loving Care also said <Norrell Corp> agreed not to acquire any additional Staff Builders shares until September 30, adding Norrell was paid 750,000 dlrs for the standstill arrangement. Tender Loving Care said it agreed to buy the 610,000 Staff Builders common held by Norrell, about 19.1 pct of those outstanding, for 6,950,000 dlrs immediately prior to the consummation of the merger. Tender Loving Care said the extended merger agreement continues to provide for the exchange of 1.6 of its shares for each Staff Builders share outstanding. As announced February 26, the Staff Builders shareholders meeting to vote on the merger, originally convened and adjourned December 23, will be reconvened on April 22. Tender Loving Care said its payment to Norrell will include 1,950,000 dlrs in cash and five mln dlrs of a new series of eight pct Tender Loving Care convertible preferred. Tender Loving Care said it and Staff Builders have filed a revised registration and proxy statement with the Securities and Exchange Commission. Upon clearance of the revised proxy statement by the commission and its distribution to Staff Builders' shareholders, that company's management will continue to solicit proxies for approval of the merger. Tender Loving Care said it will have the power to vote about 15.8 pct of Staff Builders' shares at the adjourned meeting with a spokesman explaining that this represents the proxies held by Norrell, which started buying the stock after the record date for the meeting. In addition, Staff Builders officers and directors own about 13.8 pct of its stock and have agreed to vote in favor of the merger. Accordingly, the vote of an additional 37.1 pct of the outstanding shares will be required to approve the merger, Tender Loving Care said. Reuter 

TALKING POINT/AUTO SUPPLIER STOCKS

The 1987 outlook for U.S. auto sales is clouded by a decidedly mixed sales forecast, and analysts who follow the industry say it is also true for companies that sell parts and equipment to the major car and truck manufacturers. But while there are only four major U.S.-based automakers whose shares are traded on stock exchanges, there are thousands of big and small suppliers who sell a flood of original and replacement parts. Analysts who follow the parts industry say there are many opportunities for investors brought on by the auto industry's intensified competition and the large volume of production in North America planned by Japanese automakers. But assessing the supplier arena is far more complicated than for investors considering the stocks of the Detroit Big Three - General Motors Corp <GM>, Ford Motor Co <F> and Chrysler Corp <C>. Despite widespread predictions that U.S. vehicle sales will decline about 10 pct from the record 1987 levels, Wall Street financial experts are still generally bullish on Ford and somewhat less so on Chrysler. And analysts remain largely neutral to bearish on GM, the industry giant whose earnings have been dropping along with its sales as it struggles to reorganize and shed its unprofitable parts-making businesses. more 

SOVIET SOYMEAL IMPORTS SEEN RISING IN 1987

Soviet imports of soymeal may reach or exceed one mln tonnes between January and September this year, the Oil World newsletter said. Oil World said it was likely the Soviet Union would reduce soybean imports and step up significantly its imports of meal. At least 500,000 tonnes of soymeal may be shipped from the European Community and South America in the January/March quarter, with additional large quantities likely to be imported in the April and July quarters from Argentina and Brazil, it said. No figures were given for imports in the corresponding periods of 1986. The change made sense in view of the recent purchases of probably 250,000 tonnes of West European and Polish rapeseed and large scale butter imports that were expected from March onward, it said. Oil World said substantial losses of Soviet winter grain area due to recent severe frosts were probably behind the recent pick-up in Soviet purchases of U.S. Corn. It noted that an additional one mln tonnes of U.S. Corn had been bought recently by the Soviet Union. Reuter 

COLOMBIA TO SELL SUGAR, LONDON TRADERS SAY

Colombia is holding a snap selling tender tonight for one cargo of world market raw sugar, traders said. The sugar is for March 15/April 15 shipment and bids are being sought based on the New York May delivery futures contract, they added. Reuter 

VARIAN <VAR> IN TALKS WITH PHILIPS ELECTRONICS

Varian Associates Inc said it is holding discussions with Philips Electronics regarding the purchase of Philips' broadcast transmission unit in the United Kingdom, Pye TVT Limited. Pye TVT designs and manufactures broadcast transmission equimpment, specializing in television frequencies. Reuter 

JAGUAR <JAGRY> FEBRUARY U.S. SALES FALL

Jaguar PLC's Jaguar Cars Inc U.S. subsidiary said February sales were 1,466, down from 1,673 a year before. The company said it expects a resumption of U.S. sales growth towards the latter half of 1987. Jaguar said year-to-date U.S. sales were 2,523, down from 2,684 a year before. Reuter 

FRUIT OF THE LOOM OFFERS DEBENTURES, NOTES

Fruit of the Loom Inc said it is offering 60 mln dlrs of 6-3/4 pct convertible subordinated debentures due March 2002 and 250 mln dlrs of 10-3/4 pct senior subordinated notes due July 1995. Both issues are priced at par. The convertible debentures may be exchanged for class A common stock at the holder's option at 11.25 dlrs. Drexel Burnham Lambert Inc is lead manager for both offerings. The convertible debentures are rated B-3 by Moody's Investors Service Inc and CCC-plus by Standard and Poor's Corp. The notes are rates B-2 by Moody's and CCC-plus by S/P. Reuter 

BUTLER <BTLR> TO SELL PART OF UNIT

Butler Manufacturing Co said it agreed in principal to sell part of its controls division to Enercon Data Corp of Minneapolis. Terms of the sale were not disclosed. The transaction, expected to be closed in March, involves the controls division's energy management and power line carrier product lines. Butler said costs associated with the sale were included in its restructuring charge taken in last year's fourth quarter, and will have no effect on its 1987 earnings. Reuter 

COMMONWEALTH REALTY <CRTYZ> IN REFINANCING DEAL

Commonwealth Realty Trust said it has transferred its ownership of six buildings at the Valley Forge Executive Mall in Valley Forge, Pa., to an equally-owned joint venture with Pennsylvania Public School Employees' Retirement System as part of a refinancing. The trust said it received five mln dlrs for its half interest in the buildings. It said it also received a 32 to 33 mln dlr eight-year 9.375 pct mortgage loan on the buildings, with the entire principal payable at the end of the term. After associated costs, it said it realized net proceeds of about 20 mln dlrs in cash on the transactions, 100 mln dlrs of which it will use to repay debt under its credit lines. Reuter 

DYNAMICS RESEARCH <DRCO> GETS NAVY CONTRACT

Dynamics Research Corp said it has received a two-year 9,995,000 dlr U.S. Navy contract to supply a number of accelerometer test stations and spares for Trident submarine guidance systems. Reuter 

KMW <KMWS> COFOUNDR RESIGNS FROM BOARD

KMW Systems Corp said cofounder Fred R. Klingensmith has resigned as a voting director and become an advisory or non-voting director. The company said Klingensmith is founder and president and KRL Systems Inc, which plans to develop customized systems based in part on products bought from KMW. It said he left the board to avoid a conflict of interests but remains a major KMW shareholder. Reuter 

WORLD BANK TEAM ARRIVES IN UGANDA

A World Bank team led by senior economist Katrine Saito arrived in Uganda for talks on an economic recovery program projected to cost one billion dlrs over three years. The four-member mission is expected to stay two to three weeks. An International Monetary Fund (IMF) team is due here over the same period, a World Bank offical said. Finance Minister Chrispus Kiyonga said last month that most of the one billion dlrs would go towards rehabilitating industries, repairing and maintaining roads and buying tractors and other agricultural needs. He did not say where the money would come from. Diplomats expect the government to ask the World Bank and other foreign donors to provide most of the foreign exchange portion. Reuter 

FERTILITY AND GENETICS RESEARCH <BABY> 1ST QTR

Periods ended December 31 Shr loss 10 cts vs loss seven cts Net loss 316,289 vs loss 189,140 Revs 61,762 vs 8,934 Reuter 

ROSTENKOWSKI RELUCTANT TO BACK TAX HIKE

House Ways and Means Committee Chairman Dan Rostenkowski said he would be reluctant to back the tax increase if it did not have President Reagan's support. He told a National Press Club luncheon there would be a number of tax proposals that could be debated if Reagan sought a tax increase to help balance the budget. However, he said he would prefer to leave the tax rates enacted in last year's tax reform bill unchanged. There have been calls in Congress to hold the rates at the 1987 level rather than allow them to fall next year. Reagan proposed 22 billion dlrs in revenue as part of his 1988 budget proposal, but it did not include general tax increases. On trade issues, Rostenkowski said he did not expect the major trade bill this year would single out any U.S. industry for special protection. "To go after individual items in a trade bill is suicide," he said. This apparently ruled out congressional approval of another textile trade bill to limit quotas on textile imports, as was proposed again this year. Reuter 

AMR <AMR> AIRCRAFT FINANCING SEEN POSITIVELY

The deal AMR Corp cut to buy 40 new planes is a plus for the company because it clearly puts the financial burden on aircraft manufacturers Boeing Co <BA> and <Airbus Industrie>, a European consortium, analysts said. "The terms put most of the risk on the shoulders of the manufacturers," said analyst Kevin Murphy of Morgan Stanley and Co. "They're called walkaway leases." AMR agreed to buy 15 planes from Boeing and 25 from Airbus but said its American Airlines unit will lease the aircraft, which essentially will be owned by the manufacturers. AMR declined to value the deal, which analysts estimated at roughly 2.4 billion dlrs. American Airlines will use the planes, scheduled for delivery in 1988 and 1989, to expand its service in the Caribbean and to Europe. But AMR will not lay out cash deposits to pay for the planes, nor will it take on new debt to finance the purchases. The carrier has 20-year leases on the aircraft, with four-year extension options, and may cancel the leases with 30 days notice by paying a small penalty, according to AMR chairman Robert Crandall. "We're getting the aircraft on very favorable terms," Crandall told a press briefing here. He called the deals "off balance sheet" limited obligation leases, under which the financing is provided by the manufacturers. A spokesman for Airbus confirmed those terms. "We will own the aircraft and they will be leasing them from us," he said. Airbus is providing American Airlines with 25 of its twin-jet, long-range A300-600 planes. A spokesman for Boeing Commercial Airplane Co, the unit of Boeing that makes the long-range 767-300 planes that are part of the deal, declined to comment on financing arrangements. Analysts said "walkaway lease" deals have been used before by airlines buying aircraft, particularly new generations of planes, but not to this extent. Julius Maldutis of Salomon Brothers Inc said the deal will give AMR financial stability as it grows. "AMR is using the manufacturers' balance sheets to finance these airplanes and consequently, its debt to equity ratio will remain stable into the early 1990s," he said. "The deal reflects a fundamental trend where airlines will increasingly become operators of assets rather than owners" to reduce their exposure to risk, he added. Reuter 

<MAGELLAN CORP> SETS MERGER WITH BALZAC

Magellan Corp said it has entered into a letter of intent to acquire Balzac Investments Inc in a transaction that will result in former Balzac shareholders owning about 83 pct of the combined company. The company said on completion of the merger, the combined company wopuld be known as Power-Cell Inc and be engaged in the development of Balzac technology related to its Quick Charge product for charging auto batteries. The transaction is subject to approval by shareholders of both companies. Reuter 

UNITED COS FINANCIAL CORP <UNCF> 4TH QTR NET

Shr 68 cts vs 78 cts Net 2,432,179 vs 2,236,471 Revs 50.8 mln vs 35.1 mln Avg shrs 3,600,000 vs 2,850,000 Year Shr 2.82 dlrs vs 3.35 dlrs Net 10.0 mln vs 9,554,658 Revs 177.5 mln vs 138.1 mln Avg shrs 3,567,123 vs 2,850,000 Reuter 

IMF APPROVES 125.9 MLN SDR'S FOR JAMAICA

The International Monetary Fund said it approved 125.9 mln SDR's to assist development in Jamaica. Of this total, 85 mln SDR's can be drawn over the next 15 months under a standby arrangement in support of the government's economic and financial program. Another 40.9 mln is available immediately under the compensatory financing facility, the IMF's pool of funds to assist countries hit by export shortfalls. The IMF said that Jamaica had a shortfall in the year ended September 1986 due to reduced sales of Bauxite, alummina and travel expenditures. After some deterioration, the situation and prospects for Jamaica improved substantially in 1986 and early 1987, mainly as a result of a decline in energy prices and interest rates, and a strong recovery in the tourist sector, the IMF said. The program that the new funding supports is designed to continue the adjustment and restructuring effort so as to achieve sustained growth, a lower rate of inflation and a balance of payments viability in the medium term. Reuter 

GM <GM> TO CLOSE NORWOOD PLANT IN AUGUST

General Motors Corp said it will cease production at its Norwood, Ohio, car assembly plant effective August 26 to reduce output of the sporty CHevrolet Camaro and Pontiac Firebird models built there. "After careful review and analysis of our capacitry requirements, it has become necessary for us to close Norwood at the end of the 1987 model year," GM vice-president and group executive Robert Schultz said. GM previously said it would close the plant in a capacity reduction, but did not specify a precise date. The cars will still be built at GM's Van Nuys, Calif., plant. Reuter 

FERTILITY/GENETICS <BABY> STUDIES ALTERNATIVES

Fertility and Genetics Research Inc said it will not establish further free-standing ovum transfer centers and is exploring the establishment of general fertility centers and alternative businesses. The company said this followed its evaluation of unpublished technical information regarding some competing technology which, if substantiated and replicated, could adversely affect the company's operations. Fertility and Genetics said the non-surgical ovum transfer procedure will continue to remain a viable option for infertile couples to consider among the several alternative procedures available in advanced reproductive medicine. "In particular, it is medically and psychologically superior to surrogate motherhood, because the fertilized egg is transferred prior to the gestation process, rather than after maternal bonding with the child has taken place," the company explained without further reference to the unpublished technical information. Reuter 

EXECUTIVE TELECOM <XTEL> CHANGES MEETING DATE

Executive Telecommunications Inc said the recently announced joint board of directors meeting with <First Equipment Leasing Co> to negotiate the details of the First Equipment reverse takeover offer has been changed from March 12 to March 16. XTEL said the move was made to accommodate several of the directors with conflicting schedules. First Equipment recently offered to buy XTEL in a reverse takeover deal in which the new company would retain the XTEL name. Reuter 

BRISTOL-MYERS CO <BMY> SETS QUARTERLY

Qtly div 70 cts vs 70 cts prior Pay May One Record April Three Reuter 

PERINI INVESTMENT <PNV> BUYS FLORIDA PROPERTIES

Perini Investment Properties Inc said it has purchased three industrial/warehouse properties in Boca Raton, Fla., and one in Pompano Beach, Fla., for an undisclosed amount. The company said the purchases increase its industrial/warehouse inventory by about 252,000 square feet. Reuter 

FBI CHIEF WEBSTER REFUSES COMMENT ON CIA POST

FBI Director William Webster refused all comment on whether he has been approached to head the Central Intelligence Agency. After testifying before a Senate Judiciary Committee, Webster answered repeatedly with "no comment" when asked by reporters if he has been approached. Webster has been mentioned as a possible top choice to head the spy agency following President Reagan's forced withdrawal of the nomination of acting director Robert Gates, to succeed ailing ex-CIA chief William Casey. Reuter 

AMERICAN ADVENTURE <GOAA> SETS BANKRUPTCY PLAN

American Adventure Inc said a U.S. Bankruptcy Court confirmed its reorganization plan. The plan calls for the sale of substantially all the assets of the company to a new company that will retain the same name, but be incorporated in Delaware. The comany said the transaction is expected to close later this month. Shareholders will receive one share of stock in the new company for every 10 shares they hold currently. Reuter 

AMERICAN AIRCRAFT CORP BUYS PRIVATE FIRM

<American Aircraft Corp> said it has acquired a 51 pct interest in privately-held <Hunter Helicopter of Nevada, Inc>. The purchase was made for an undisclosed amount of American Aircraft stock, the company said. It said the acquisition will increase shareholder equity in American Aircraft to 45 cts per share from 18 cts per share. Hunter Helicopter builds two-passenger helicopters that retail for about 50,000 dlrs. Reuter 

AID CORP <AIDC> RAISES QUARTERLY DIVIDEND

Qtly div nine cts vs eight cts in prior qtr Payable March 31 Record March 13 Reuter 

AMERICAN NETWORK <ANWI> REDUCES CUSTOMER RATES

American Network Inc said it has reduced its long distance telephone service rates by two to 15 pct. The reductions apply to the company's subsidiaries, STARNET International Inc and American Telephone Exchange. Reuter 

NATIONAL DATA <NDTA> SIGNS PACT WITH US SPRINT

National Data Corp said it signed a multi-year contract with US Sprint to provide the long distance telephone company with around the clock operator services. National Data said it was the first step in establishing a Center Services Divisioin. The company said it will provide 24-hour, 7-day-a week services to the long distance network, and expects the agreement to generate in excess of eight million dlrs in revenue during the current fiscal year, which ends May 31, 1987. The new services will allow subscribers to make collect, person-to-person and station-to-station calls, and to receive call assistance services anywhere in the U.S., the company said. Reuter 

HEWLETT-PACKARD <HWP> UNVEILS NEW PRODUCTS

Hewlett Packard Co said it unveiled the HP LaserJet Series II printer, the next generation of its laser printer line. The company said the HP LaserJet II offers more capabilities than earlier models, but at 2,495 dlrs, costs 500 dlrs less than previous machines. The LaserJet II prints eight pages a minute and can be used for desktop publishing, word processing, and spreadsheet and graphics printing. It also said it introduced a larger laser printer to accommodate numerous workstations and a machine used to scan documents. The company also said it introduced the HP LaserJet 2000, its first printer designed to be used with personal computer networks, departmental systems and minicomputers. It can print 20 pages a minute, and has an entry price of 19,995 dlrs. It also unveiled the SP ScanJet, a flatbed desktop device that scans printed images of text. The scanner works like a photocopier storing the copied images on a hard disk, the company said. It costs 1,495 dlrs. Hewlett Packard also said it brought out a new family of plotter machines, the HP Draftmasters I and II. The new models replace the HP 758X series of drafting-plotter line machines used for computer aided design. The Draftmaster costs 9,900 dlrs, and the Draftsmaster II, 11,900 dlrs. A smaller plotter, called the DraftPro, was priced at 5,400 dlrs. It is designed for use with a personal computer. Reuter 

INTERNATIONAL TECHNOLOGY <ITX> MAKES ACQUISITION

International Technology Corp said it has purchased <Western Emergency Services Inc> in a pooling-of-interests transaction. International Technology, a hazardous materials management company, said it purchased Western Emergency, an environmental services firm, to offer a broader range of environmental services to the Gulf Coast area. Reuter 

<D.H. HOWDEN AND CO LTD> INCREASES DIVIDEND

Semi-annual 30 cts vs 25 cts prior Pay June 30 Record June 15 Reuter 

<CO-STEEL INC> 4TH QTR NET

Oper shr 25 cts vs 25 cts Oper net 6,322,000 vs 4,660,000 Revs 189.1 mln vs 174.7 mln Avg shrs 23.5 mn vs 17.1 mln Year Oper shr 1.04 dlrs vs 14 cts Oper net 21,929,000 vs 3,629,000 Revs 760.2 mln vs 674.8 mln Avg shrs 20.5 mln vs 17.1 mln Note: Qtr shr and net exclude tax gain of 4,573,000 dlrs or 17 cts share, versus gain of 17,259,000 dlrs or 1.02 dlrs share Year shr and net exclude tax gain of 15,992,000 dlrs or 78 cts share, versus gain of 18,042,000 dlrs or 1.06 dlrs share Reuter 

PERU COFFEE CROP UNAFFECTED BY RAINS

Recent heavy rains have not affected the Peru coffee crop and producers are looking forward to a record harvest, the president of one of Peru's four coffee cooperative groups said. Justo Marin Ludena, president of the Cafe Peru group of cooperatives which accounts for about 20 pct of Peru's exports, told Reuters a harvest of up to 1,800,000 quintales (46 kilos) was expected this year. He said Peru exported 1,616,101 quintales in the year to September 1986. A spokesman for the Villa Rica cooperative said flood waters last month had not reached coffee plantations, and the crop was unaffected. Floods in early February caused extensive damage in Villa Rica, whose coffee cooperative exported 59,960 quintales last year, according to the state-controlled coffee organisation. Marin said the rains would only affect the coffee crop if they continued through to next month, when harvesting starts. He said Peruvian producers were hoping for an increase this year in the 1.3 pct export quota, about 913,000 quintales, assigned to them by the International Coffee Organisation, ICO. He said Peru exported 1,381,009 quintales to ICO members last year with a value of around 230 mln dlrs, and another 235,092 quintales, valued at around 35 mln dlrs, to non-ICO members. Reuter 

WHITE HOUSE SAYS REAGAN TO MAKE 1530 EST/2030 GMT ANNOUNCEMENT, TOPIC UNDISCLOSED

BRAZILIAN FINANCE MINISTER MEETS STOLTENBERG

Brazilian Finance Minister Dilson Funaro, on the third leg of a trip to explain his country's stance on debt to European governments, met West German Finance Minister Gerhard Stoltenberg for talks this evening and the two men were continuing their discussions over dinner, Brazilian delegation sources said. They said the Funaro and Stoltenberg discussed Third World debt in general and Brazil's debt position in particular but declined to give further details. Funaro was scheduled to travel to Switzerland tomorrow, they added. Reuter 

GAO SAYS FSLIC SHOWS DEFICIT, NEEDS FUNDS

The Federal Savings and Loan Insurance Corp is facing a deficit because of its potential liability from insolvent savings associations, the General Accounting Office told a House Banking hearing. "We have preliminarily determined that FSLIC needs to establish a contingent liability in the range of eight billion dlrs to handle cases that will require action in the near future," Frederick Wolf of the GAO said. "When that amount is deducted from FSLIC's reserves, FSLIC would have a deficit of over three billion dlrs as of the end of 1986. Clearly, FSLIC needs additional funds to resolve the large backlog of insolvent and unprofiable savings associations that continue to operate," Wolf said. He urged the committee to support the Treasury Department's plan to raise 25 billion dlrs over five years to recapitalize FSLIC. Wolf said as of Septmember, 1986, about 85 pct of FSLIC insured savings associations were solvent, while 15 pct were insolvent. He said 80 pct of savings associations were profitable, earning a total of 6.9 billion dlrs during the first three quarters of the year, while the other 20 pct of associations lost a total of five billion dlrs in the same period. The GAO is the investigating agency of Congress. Roy Green, president of the Federal Home Loan Bank of Dallas, estimated his district would need five billion to eight billion dlrs over the next five years to close 12 Texas savings associations and 14 associations in nearby states which he said are considered "hopelessly insolvent". Reuter 

REAGAN TO MAKE ANNOUNCEMENT

The White House said President Reagan would make an announcement at 1530 EST/2030 gmt but the topic was undisclosed. A spokesman said officials would brief reporters on details of the announcement afterwards. Athough Reagan's topic was not disclosed, speculation centered on the possible naming of a nominee to to head the CIA or a response to the Soviet Union's offer to negotiate a separate arms control agreement on medium range missiles in Europe. Reuter 

WILLCOX AND GIBBS INC <WG> 4TH QTR NET

Oper shr 42 cts vs 41 cts Oper net 2,322,000 vs 1,785,000 Sales 72.3 mln vs 59.8 mln Avg shrs 5,527,000 vs 4,355,000 Year Oper shr 1.48 dlrs vs 1.40 dlrs Oper net 7,637,000 vs 5,973,000 Sales 261.7 mln vs 224.7 mln Avg shrs 5,165,000 vs 4,277,000 NOTE: 1985 operating net excludes gains of 1,523,000 dlrs, or 35 cts a share, in quarter and 5,090,000 dlrs, or 1.19 dlrs a share, in year from tax carryforwards Reuter 

GE <GE> PROFIT OUTLOOK AIDED BY ENGINE ORDER

One of General Electric Co's biggest businesses, aircraft engines, will ride a wave of increasing profits into 1991 because of a new contract worth 650 mln dlrs, Wall Street analysts said. Previously, it was expected the business would peak and decline at some point in the next five years. The improved outlook results from AMR Corp's <AMR> decision to order 40 new planes powered by CF6-80C2 GE engines. "Creative financial footwork helped GE get the order," said Nicholas Heymann, analyst at Drexel Burnham Lambert Inc. AMR declined to go into detail on financing arrangements for its order of 15 Boeing Co <BA> and 25 <Airbus Industrie> twinjet long distance aircraft. But AMR said it was using "rent-a-plane leases" that allow it to operate the aircraft without adding to its debt structure. AMR also has the right to decline delivery of the planes or return them on short notice. The arrangement protects AMR in the case of an unexpected development such as a severe downturn in the economy. From GE's point of view the package looks like a good deal for several reasons, Heymann said. GE will be able to record revenue as a sale at the time of delivery, Heymann noted. And if for some reason AMR decides not to take the planes GE's financial arm, General Electric Financial Services Inc, would have little trouble rounding up another airline that wanted the fuel efficient planes. On the whole, the deal appears to pose little risk for GE, Heymann said. GE's stock declined 1/4 to 103-1/2 on 625,000 shares by midafternoon. H.P. Smith, analyst at Smith Barney, Harris Upham and Co said for a 40 billion dlr (revenue) company "no one order will have much of an effect on the stock." Russell Leavitt, analyst at Salomon Brothers Inc, said the order "will help to maintain a good level of production and profitability in the aircraft engine business" for GE. Heymann sees operating profits from GE's jet engine business rising from 870 mln dlrs last year to 1.3 billion dlrs by 1991. Revenue from jet engines was close to six billion dlrs last year, with well over half of the business in the military sector, according to analysts' estimates. The rosy outlook for GE's jet engine business coincides with an upbeat performance in other segments. Heymann expects GE to earn 1.39 dlrs per share in the first quarter of 1987. Saying many will be suprised by the results, he believes GE has shown through its acquisition of RCA Corp that it has a "unique ability" to buy a major business and reshape it, pruning some parts and recombining parts with other elements of its 14 business areas. Smith sees GE earning 1.35 dlrs per share in the current quarter. He credits good results at RCA, in turn aided by the NBC broadcasting operation, and lower interest rates. Leavitt sees 1.40 dlrs for the current quarter, in part crediting "significant benefits from the RCA acquisition." Reuter 

TREASURY'S MULFORD SEES MAJOR NEW LENDING FOR BRAZIL, OTHER DEBTORS, IN 1987

KODAK <EK> CONTINUES DRIVE INTO NEW MARKETS

Eastman Kodak Co, best known for its cameras and film products, took several steps today to boost its image as a diversified information systems company. The Rochester, N.Y.-based company unwrapped a series of new electronic data and image storage systems that can create vast computerized libraries of documents and pictures. Analysts said Kodak made a good start in the emerging market for such systems, sales of which are expected to reach five billion dlrs by 1990. But they warned several years may pass before the new systems contribute to its bottom line. Kodak also launched a 50 mln dlr advertising campaign to promote its new image. "We want to be to the imaging market what IBM is to the data processing market," said Edgar J. Greco, vice president and general manager of Kodak's business imaging systems division. While more than 45 pct of Kodak's 11.55 billion dlrs in sales for 1986 came from photography products, Kodak said sales of copiers, electronic storage systems and other business products will exceed four billion dlrs this year. "We're launching a major attack on these new markets," Greco said. "Kodak perceives that these new businesses will be its bread and butter," said Wertheim and Co analyst Michael Ellman. But Richard Schwarz, who follows Kodak for E.F. Hutton and Co, said the company will find the profit margins much slimmer on sophisticated imaging systems than on its consumer photography products. "The critical problem will be turning a profit," he said. Kodak also announced the first commerically available 14-inch optical disk. Kodak said the disk can store the equivalent of the contents of 110 file cabinet drawers. Reuter 

IMF APPROVES DEVELOPMENT AID FOR JAMAICA

The International Monetary Fund, IMF, said it approved 125.9 mln sdr's to assist development in Jamaica. Over the next 15 months 85 mln sdr's can be drawn under a standby arrangement in support of the government's economic and financial program. Another 40.9 mln is available immediately following an export shortfall for Jamaica in the year ended September 1986 due to reduced income from bauxite, alumina and tourism, the IMF said. Reuter 

MOBIL CORP FILES FOR OFFER OF ONE BILLION DLRS OF DEBT SECURITIES

FRENCH EXPORTERS SEE HIGHER WHEAT SALES TO CHINA

French exporters estimated that around 600,000 tonnes of French soft wheat has been sold to China for delivery in the 1986/87 (July/June) year. Around 300,000 tonnes were exported to China between July 1986 and February this year. Another 100,000 to 150,000 tonnes will be shipped during this month and around the same amount in April, they said. France sold around 250,000 tonnes of soft wheat to China in 1985/86, according to customs figures. However, certain exporters fear China may renounce part of its contract with France after being offered one mln tonnes of U.S. soft wheat under the Export Enhancement Program in January and making some purchases under the initiative. Reuter 

BUCKHORN INC <BKN> 4TH QTR LOSS

Oper shr loss 1.24 dlrs vs profit 19 cts Oper net loss 1,965,000 vs profit 646,000 Revs 10.5 mln vs 11.6 mln Avg shrs 1,741,000 vs 3,581,000 12 mths Oper shr loss 1.55 dlrs vs profit 42 cts Oper net loss vs profit 2,051,000 vs 1,492,000 Revs 42.9 mln vs 45.5 mln Avg shrs 1,816,000 vs 3,581,000 NOTE: prior qtr excludes loss 229,000, or seven cts per share, for discontinued operations. 1986 qtr excludes 159,000 extraodinary loss. Excludes loss 293,000, or 16 cts per share, for 1986 and gain 651,000, or 18 cts per share, for 1985 for discontinued operations. Excludes loss 256,000 for 1986 net for extraordinary item. Reuter 

TREASURY'S MULFORD SEES BRAZIL LENDING PROGRESS

Assistant Treasury Secretary David Mulford said rapid progress was being made in talks with commercial banks for loans to Argentina, the Philippines and Brazil. "This should result in substantial new lending for the major debtors in 1987," he said in prepared testimony for the Subcommittee on International Development Institutions of the U.S. House of Representatives. Until recently, commercial banks were slow to conclude new financing packages pending completion of a Mexican package, Mulford said. "We are concerned about the backlog of other financial packages and would like to see these move ahead soon," he said, "There is some evidence that this is already happening. Chile signed an agreement with banks last week, and there was also an agreement with Venezuela on rescheduling principal payments on previously renegotiated debt. "We look for rapid progress in commercial bank discussions with Argentina, the Philippines, and ultimately Brazil," he said. Reuter 

BUCKHORN INC <BKN> SEES HIGHER PROFITS IN 1987

Buckhorn Inc said itd nine million dlr backlog for orders and a less expensive operating environment should yield significant levels of operating profits for 1987. Buckhorn, a manufacturer of reusable plastic shipping and storage containers, recorded 2,051,000, or 1.55 dlrs per share, operating net loss for 1986. Buckhorn said the year's results included a 4,250,000 non-recurring expense incurred to complete major restructuring efforts and to defend against the hostile tender offer from Ropak Corporation. Reuter 

MOBIL <MOB> FILES FOR ONE BILLION DLR DEBT OFFER

Mobil Corp filed with the Securities and Exchange Commission for a shelf offering of up to one billion dlrs of debt securities on terms to be determined at the time of the sale. Proceeds from the sale will be used for general corporate purposes, the company said. Mobil did not name any underwriters for the offering. Reuter 

CIIT PLANS RIGHTS OFFERING

<CIIT Inc> said it filed a final prospectus for a 15 mln dlr rights offering to subscribe for 1.1 mln common shares at 13.85 dlrs each. Under the terms of the offering, each common share holder will receive 1-1/2 rights for each common share held on March 13 and each right will entitle the holder to subscribe for one common share at 13.85 dlrs each by April 13, the company said. Reuter 

ALCAN, BERTONE MAKE ALUMINUM STRUCTURE CAR

Alcan Aluminium Ltd said it joined with Carrozzeria Bertone S.P.A. to exhibit Alcan's technology in aluminum structured vehicles at Geneva's international auto salon. Alcan said it and Bertone have built several Bertone X1/9 sports cars with structures of adhesively bonded sheet aluminum. It said the bodies were made on presses used for Bertone's steel-structured sports cars. Alcan said two of the cars are currently being tested in Britain by the Motor Industry Research Association. Alcan said it has developed and tested the aluminum structure technology so that it is suitable for modern auto making methods and plants. Alcan said the technology, which reduces the weight of a car's basic structure by up to 50 pct, can improve handling and performance and reduce fuel consumption for any size car. It said the structures also provide long life without the need for rust protection. The structure provides the same stiffness and safety as present materials, while continuously bonded seams allow a 65 pct reduction in spot welds, Alcan said. Reuter 

CCR VIDEO 1ST QTR NOV 30 NET

Shr 2-1/5 cts vs nil Net 156,726 vs 11,989 Sales 1,157,883 vs 890,138 Reuter 

DEL E. WEBB INVESTMENT <DWPA> 4TH QTR NET

Shr eight cts vs 16 cts Net 188,000 vs 354,000 Revs 538,000 vs 594,000 Year Shr 31 cts vs 28 cts Net 692,000 vs 617,000 Revs 2,640,000 vs 906,000 (Del E. Webb Investment Properties Inc) Reuter 

AID <AIDC> PROPOSES NAME CHANGE

AID Corp said its stockholders will be asked to change the company's name to ALLIED Group Inc to more closely reflect the corporate logo adopted last year. It said stockholders of record March 31 will be eligible to vote at the meeting. The company said its board has approved an amendment to the pooling agreement effective January one, whereby <AMCO Insurance Co> will increase its participation by assuming 33 pct of ALLIED Group's combined written premiums. AMCO had previously assumed 30 pct of the combined written premiums. With this amendment, AID said, its subsidiaries now assume 41 pct of the total combined written premiums. Reuter 

MOODY'S DOWNGRADES LORAL <LOR> DEBT

Moody's Investors Service Inc said it downgraded to Baa-2 from A-3 the rating on Loral Corp's 7-1/4 pct convertible subordinated debentures of 2010 and on 10-3/4 pct subordinated sinking fund debentures due 1997. Moody's said it took the action, which affects approximately 117 mln dlrs of debt, after examining Loral's acquisition of Goodyear Aerospace Corp. It said the downgrade reflects the substantial increase in the company's debt in order to finance the acquisition and the risks of assimilating such a relatively large acquisition. Reuter 

U.S. EXPORTERS REPORT 104,000 TONNES OF CORN SOLD TO UNKNOWN DESTINATIONS FOR 1986/87

F.W. WOOLWORTH'S <Z> 1986 PROFITS RISE 21 PCT

The specialty retailing area continues to pay off for F.W. Woolworth Co, once known only as a five and dime store chain, which said its 1986 income rose 21 pct. It was the fourth consecutive year of profit increases for the New York-based retailer which was founded over 100 years ago. Woolworth's 1986 income rose to 214 mln dlrs or 3.25 dlrs per share compared with 1985's profit of 177 mln or 2.75 dlrs per share. Revenues for the year rose to 6.50 billion compared with the prior year's 5.96 billion. For the fourth quarter, the company reported profits rose 10 pct to 117 mln dlrs or 1.78 dlrs per share compared with 1985 fourth quarter results of 106 mln or 1.64 dlrs per share. Revenues rose to 2.02 billion from 1.85 billion dlrs. Roy Garofalo, Woolworth vice president, told Reuters that income generated by the company's specialty store operations accounted for 52 pct of the parent company's 1986 profits. He said the company now has 4,700 specialty stores operating under 30 different names. Woolworth plans to open 650 more specialty stores in 1987. At this time last year, it operated 4,100 specialty stores, Garofalo said. Garofalo said the largest specialty chain operated by Woolworth is Kinney Shoe Stores, followed by the Richman apparel unit. Among other units are Little Folk Shop, a chain of discount children's apparel stores; The Rx Place, a discount drug, health and beauty aid operation; and Face Fantasies, which sells cosmetics. There are currently about 1,700 Woolworth general merchandise stores operating worldwide, of which 1,200 are in the United States. Harold Sells, chairman and chief executive of Woolworth, said in a statement, "These results are especially gratifying as they are an improvement over last year's record earnings." Sells that it was the fourth successive year earnings in each quarter improved over the corresponding year-earlier period. Woolworth's variety store operations were hard hit in the 1970's and early 1980's by the quickly growing discount store industry. In an attempt to compete in the 1970's, Woolworth opened a discount general store chain, Woolco, and J. Brannam, a discount apparel chain. Both were failures in the United States, although Woolco still operates in Canada. In 1985, however, Woolworth changed its strategy and announced that it would operate specialty stores. At that time, the company said it would create 14 new groups of such stores. Specialty stores generally have higher sales per square foot than general merchandise stores. Reuter 

TREASURY'S MULFORD BACKS DEBT CONVERSIONS

Assistant Treasury Secretary David Mulford said he prefers debt conversion plans to help heavily indebted countries over quick-fix political plans to help ease their debt burden. "In my view, debt conversions or swaps into either equity or local debt claims provide a preferable route to 'debt relief' for the debtor nations, particularly if combined with measures to encourage new equity investment and the repatriation of flight capital," he told the House Subcommittee on International Development Institutions. Mulford criticized what he called large-scale solutions to the debt problems effecting many developing countries, ranging from debt forgiveness to creating new multilateral institutions for lending. "While such approaches may have some political appeal, they are impractical and ultimately counterproductive," he said. He said debt conversions, or swaps, are more effective because they eliminate the interest service on converted debt, create new jobs and open up investment opportunities that can help indebted countries overcome their own problems. Reuter 

ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS

Shr loss 72 cts vs loss 1.48 dlrs Net loss 4,466,006 vs loss 9,091,688 Revs 608,181 vs 1,280,727 Six Mths Shr loss 77 cts vs loss 1.51 dlrs Net loss 4,752,455 vs loss 9,265,457 Revs 1,444,149 vs 2,791,188 Reuter 

CANADA ECONOMY EXPECTED TO GROW MODERATELY

Canadian economic growth is expected to slow further in 1987, but an improved the trade picture should keep the country from recession, economists said. "The economy is ready for about a 2.0 pct rate of growth over the course of 1987," said Carl Beigie, Chief Economist at Dominion Securities Pitfield Ltd. Statistics Canada reported that gross domestic product, grew 3.1 pct in 1986, the fourth year of continuous expansion, but down from 1985's four pct. In the final quarter, GDP, in 1981 prices and at annualized rates, rose a slight 0.2 pct after expanding 0.8 pct in the third quarter. "Essentially it is a flat performance," said Warren Jestin, deputy chief economist at the Bank of Nova Scotia. Economist Wendy Smith Cork of the brokerage Nesbitt Thomson Bongard Inc said "it shows the economy is not moving along very steadily, it's not a very promising number." "We weren't surprised, we expected to see one bad quarter in Canada, but we don't think there will be a recession," she added. The rise in GDP was below the 3.3 pct increase forecast by Federal Finance Minister Michael Wilson in his budget last month. He also projected the economy would expand 2.8 pct this year. Many economists are less optimistic, predicting growth will likely be in the 2.0 to 2.2 pct range. Statistics Canada also reported the country's trade performance deteriorated sharply last year as the deficit in the current account rose to a record 8.8 billion Canadian dlrs from the previous year's shortfall of 584 mln dlrs. "The sharp increase in the deficit originated from merchandise trade transactions where imports continued to advance strongly whereas exports were virtually unchanged," the federal agency said in a statement. The merchandise trade surplus was pared to 10.13 billion dlrs in 1986 from 17.48 billion dlrs in 1985. But economist Cork said the expected upturn in the U.S. economy will lead to increased demand for Canadian goods, and help fuel the country's modest expansion. Nearly 80 pct of Canada's exports are shipped to the U.S. each year. Reuter 

USDA REPORTS CORN SOLD SOLD TO UNKNOWN

The U.S. Agriculture Department said private U.S. exporters reported sales of 104,000 tonnes of corn to unknown destinations for shipment in the 1986/87 marketing year. The marketing year for corn began September 1, it said. Reuter 

PRESIDENT REAGAN SAYS U.S. TO SUBMIT DRAFT TREATY ON INTERMEDIATE MISSILES REDUCTION

BANK OF ENGLAND PROPOSES LIMITS ON UNDERWRITERS

The Bank of England proposed that banks in Britain for the first time will have to seek authorization to be lead underwriters of new issues in the euromarkets. In addition, the Bank has proposed limits on the amount of credit risk that firms can take on with each new issue they lead manage. The proposed rules were outlined today in a consultative paper on large credit exposures taken by recognized banks and deposit takers and may be modified, the Bank said. The rules could affect billions of dollars of eurobond securities issued each year. In 1986, about 183 billion dlrs of new eurobonds were offered, according to figures compiled by Euromoney magazine. Up until now, there have been no restrictions on lead managing eurobond issues. However, eurobond market participants believe the Bank of England is concerned about intense competition for market share which may have caused some firms to expose themselves to imprudent credit risk. Competition for market share has been a boon to issuers as banks compete to offer the best terms. But the new rules suggest that some constraints may be placed on competition as regulators attempt to ensure that no bank takes on more risk than it can handle. Banking sources said that while the Bank of England is reluctant to inhibit competition, it is willing to accept some constraints in order to ensure that underwriters act prudently. "The Bank's assessment of the appropriateness of a bank's lead underwriting activity will depend primarily upon the skill and experience of the lead underwriter in the particular market concerned...," the Bank's proposal said. Once a firm has received permission to act as lead underwriter, the exposure will be valued at one-sixth of the face amount of the securities. Nominal exposure exceeding 60 pct of capital must be reported to the Bank of England and it must be notified in advance for exposure of over 150 pct of capital. The exposure will be determined to exist for a maximum of 28 days following a binding commitment to underwrite. After that, any remaining exposure from unsold securities will be assessed at their full face value. The rules would not apply to syndicated loan facilities, revolving credits or commercial paper, the Bank said. The Bank also amended other aspects of plans to strengthen its supervisory powers over banks in the paper, which called for comments from professionals by March 31 to allow their possible inclusion in the Banking Bill in time for its planned final discussion in Parliament, scheduled before summer. The new Banking Bill, updating the 1979 Banking Act, is the third leg of the Conservative government's legislation for the supervision of financial institutions. It is to feature alongside the Financial Services Act, aimed to bolster investor protection, and the Building Societies Act, which put these institutions on an equal footing with banks. The proposed legislation would abolish distinctions between recognised banks and licensed deposit-takers and tighten legal controls, making it a criminal offence to mislead supervisors. Proposals to require banks to inform the Bank of England in advance of planned exposures in excess of 25 pct of their capital, and to have the Bank supervise exposures between 10 and 25 pct of capital, were not under debate, the paper showed. However, preliminary consultations with bank representatives had shown some of the initial proposals to be flawed, it said. Most proposed changes involved evaluating exposures on a case-by-case basis rather than along general lines. Amendments involved the Bank's proposed treatment of exposures by financial institutions acting as banker to other units of their own group of companies, the paper showed. They also regarded the treatment of credit exposure to local governments and other public sector entities, and of exposures undertaken by banks that are subsidiaries of banks. Proposals on how to value securities given by a debtor as collateral to a credit were slightly changed, the paper showed. Exposures taken on by banks acting as creditor within their own group of companies would usually be looked into on a case-by-case basis under new proposals, it said. The paper said exposures to state-owned industries and other public sector authorities in the U.K. and abroad should be given the more lenient treatment of credits to governments provided a government gives unconditional repayment guarantees. It cautioned that exposures to U.K. local authorities and those guaranteed by the British Export Credit Guarantee Department would probably not qualify for such treatment. On credits granted by banks which are a subsidiary of another bank, an earlier-proposed 100 pct of capital ceiling could be exceeded in individual cases. But the parent bank would have to give a formal undertaking to take over the exposure if problems were to occur, and state in writing that the exposure was retained in the subsidiary's balance sheet to meet precise group objectives, the paper said. On collateral security, it said this "should normally only be taken into account when considering the acceptability of a bank's exposure up to 25 pct of its capital base." "The presence of security taken on its own will be considered by the Bank as an acceptable reason for an exposure in excess of 25 pct, but only in the most exceptional circumstances and even then to a very limited extent," it said. Reuter 

AMERICAN AIRCRAFT BUYS INTO HELICOPTER BUILDER

<American Aircraft Corp> said it has acquired a 51 pct interest in privately-owned <Hunter Helicopter of Nevada Inc> for an undisclosed amount of stock. An American Aircraft official said the company has an option to acquire the remaining 49 pct. Hunter Helicopter is in the business of building a two passenger helicopter retailing for about 50,000 dlrs each which is certified by the Federal Aviation Administration. The helicopters will be manufactured in American Aircraft's Uvalde, Texas, plant, it added. Reuter 

PREMIER INDUSTRIAL CORP <PRE> REGULAR DIVIDEND

Qtly div 11 cts vs 11 cts in prior qtr Payable April 10 Record March 23 Reuter 

PREMIER INDUSTRIAL <PRE> NAMES EXECUTIVES

Premier Industrial Corp said it named Robert Warren to the new post of vice chairman and William Hamilton president, succeeding Warren. Morton Mandel continues as chairman and chief executive officer and Warren continues as chief operating officer, the company said. Hamilton, formerly senior vice president, will have the company's three business segments -- maintenance products, distribution of electronic components and manufacture of fire-fighting accessories -- reporting to him. Additionally, Philip Sims and Bruce Johnson were named executive vice presidents, responsible for finance and the electronics group, respectively. Sims continues as treasurer and chief financial officer, Premier said. Reuter 

AMEX HAS RECORD SEAT SALE

The American Stock Exchange said it sold an options principal membership for a record 305,000 dlrs, 56,000 dlrs more than the previous seat sold on January 19, 1987, and 35,000 dlrs above the previous record high in 1983. The Exchange said the current bid is 280,000 dlrs and the current offer is 315,000 dlrs. Reuter 

INTERNATIONAL TECHNOLOGY <ITX> BUYS FIRM

International Technology Corp said it has purchased privately-held Western Emergency Service Inc in a stock transaction. Western Emergency, an environmental services firm, has annual sales of between one and two mln dlrs, compared to International Technology's roughly 240-mln-dlr annual sales, a spokesman for International Technology said. Reuter 

AST RESEARCH INC <ASTA> NOMINATES BOARD MEMBERS

AST Research Inc said it nominated Richard Goeglein, president and chief operating officer for Holiday Corp, and Phillip Matthews, chairman and chief executive officer for Echelon Sports Corp, for election to its board at the May 19 meeting. Two members of the board, Michael Child and Henry McCance, will retired at the meeting, the company said. AST Research supplies high performance IBM compatible personal computers and workstations. Reuter 

NORFOLK SOUTHERN <NSC> IN BUILDING VENTURE

Norfolk Southern Corp said it entered into a joint venture with Sovran Financial Corp <SOVN> to build the Sovran III Building, which will be renamed Norfolk Southern Tower. Norfolk Southern said it will locate its headquarters in the tower and occupy the 17th through 21st floors. It did not disclose the financial terms of the venture. The company said construction of the building adjacent to the Royster Building in downtown Norfolk begain in October 1986. Another story has been added to the original plans, making a 21-story tower. Reuter 

CONTINENTAL GENERAL INSURANCE <CGIC> 4TH QTR NET

Shr 20 cts vs 21 cts Net 783,564 vs 806,278 Year Shr 89 cts vs 86 cts Net 3,443,392 vs 3,242,588 Note:Full company name is Continental General Insurance Co Net includes profit from sale of securities of 155,410 dlrs, or four cts a share, and 192,896 dlrs, or five cts a share, respectively, in 1986 qtr and year, and of 12,879 dlrs, or nil per share, in 1985 qtr. Net for 1985 year includes loss from sale of securities of 315,763 dlrs, or eight cts a share. Reuter 

MARGAUX CONTROLS INC <MARGX> 3RD QTR LOSS

Shr loss 1.60 dlrs vs loss 45 cts Net loss 9,883,000 vs loss 2,744,000 Revs 1,309,000 vs 3,289,000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6,008,000 Revs 4,577,000 vs 11.9 mln NOTE: Current periods include loss of 7.5 mln dlrs from discontinued operations. Reuter 

MERCHANTS GROUP INC <MRCH> 4TH QTR OPER NET

Oper shr profit 21 cts vs loss 2.13 dlrs Oper net profit 456,000 vs loss 2,454,000 Revs 16.3 mln vs 13.1 mln Year Oper shr 1.39 dlrs vs loss 2.41 dlrs Oper net profit 1,815,000 vs loss 2,779,000 Revs 58.0 mln vs 43.8 mln NOTE: 1986 4th qtr and yr oper net exclude realized investment gains of 279,000 dlrs and 1,013,000 dlrs, respectively, which includes provision for income taxes of 238,000 dlrs and 863,000 dlrs for the periods, respectively. 1986 4th qtr and yr oper net exclude 606,000 dlrs or 38 cts per share and 2,323,000 dlrs or 1.86 dlrs per share, for net operating loss carryovers. 1985 4th qtr and yr oper net exclude realized investment gains of 439,000 dlrs and 666,000 dlrs respectively. Reuter 

HITECH <THEX> AND QUME IN PACT

The Hitech Engineering Co and <Qume Corp> said that Hitech has agreed to design and certify certain Qume desktop laser printers for the industrial and government TEMPEST market. The TEMPEST program is a set of standards for government information processing equipment designed to minimize electromagnetic eavesdropping. The companies said that the total TEMPEST market is estimated to be around two billion dlrs. Reuter 

CONTINENTAL GENERAL <CGIC> SETS STOCK DIVIDEND

Continental General Insurance Co said its board of directors declared a 10 pct stock dividend on common shares, payable April one to shareholders of record March 16. The company yesterday paid a quarterly cash dividend of 2-1/2 cts a share, unchanged from the previous quarter, to shareholders of record February 20. Reuter 

MARGAUX CONTROLS INC <MARGX> 3RD QTR DEC 28 LOSS

Shr loss 1.60 dlrs vs loss 45 cts Net loss 9,883,000 vs loss 2,744,000 Revs 1,309,000 vs 3,289,000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6,008,000 Revs 4,577,000 vs 11.9 mln Note: 1986 net losses inlcude 7,507,000-dlr charge from discontinued operations of building management system sold to Cetek System Inc on Jan 30, 1987. Reuter 

AMERICAN ADVENTURE <GOAA> PLAN GET APPROVAL

American Adventure Inc said its reorganization plan was approved by the United States Bankruptcy Court for the Western District of the State of Washington. The company said the plan calls for the sale of substantially all of the assets of the company to a new company, which will retain the name American Adventure Inc, and be incorporated in Delaware. The transaction is scheduled for later this month when shareholders of the old company will receive one share of stock in the new company for every 10 shares they hold in the old company, according to American Adventure. Reuter 

REAGAN SAYS U.S. TO OFFER MISSILE TREATY

President Reagan said the United States would offer a draft treaty on medium-range missile reductions at talks with the Soviet Union in Geneva tomorrow. Reagan also said in a brief televised appearance in the White House briefing room that he was summoning Ambassador Max Kampelman and the other top U.S. arms negotiators home for consultations later this week. He said they will then return to Geneva for detailed negotiations on the arms pact. Welcoming Soviet leader Mikhail Gorbachev's offer Saturday to proceed with a treaty on Intermediate Range Nuclear forces (INF) separate from strategic and space weapons, Reagan said: "This removes a serious obstacle to progress towards INF reductions." "To seize this new opportunity I have instructed our negotiators to begin presentation of our draft INF treaty text at Geneva tomoorrow," Reagan said. He said he wanted to stress that of the issues remaining to be resolved in the negotiations on medium-range U.S. and Soviet missiles, "none is more important than verification ... Any agreement must be effectively verifiable." The United States has been working closely with allies and friends in Europe and Asia to develop a proposed treaty on reducing these weapons with an eye to their eventual elimination, the president said. He said the treaty draft followed the formula he agreed upon with Gorbachev at their summit meeting last October in Reykjavik, Iceland, which was shelved when the Soviet leader insisted on linking approval of such a pact to agreement on long-range strategic missiles and anti-missile defense. "I remain firmly committed to these objectives," he said. He said Gorbachev's new offer Saturday ending the linkage of the three areas of negotiations removed a major barrier to agreement and was consistent with the Soviet position at the earlier Reagan-Gorbachev summit in Geneva in November 1985. Reuter 

HARRIS CUTS STAKE IN BELL INDUSTRIES <BI>

Harris Associates L.P., a Chicago investment advisory limited partnership, said it lowered its stake in Bell Industries Inc to 1,015,800 shares, or 18.7 pct of the total outstanding, from 1,083,800 shares, or 20.0 pct. In a filing with the Securities and Exchange Commission, Harris said it sold 68,000 Bell common shares between Dec 18 and Feb 20 at prices ranging from 20.25 to 25.24 dlrs each. Harris said its dealings in Bell stock are on behalf of its advisory clients. Reuter 

GOODYEAR <GT> CHAIRMAN CRITICIZES CORPORATE RAIDS

The chairman of Goodyear Tire and Rubber Co, a concern that survived a recent hostile takeover bid, charged that "terrorists in three-piece suits" are undermining the nation's industrial base. In a speech to a meeting of south Florida business executives, Goodyear Chairman Robert Mercer lashed out at corporate raiders and takeover specialists, accusing them of causing serious harm to the companies they target. "Their interest is not in preserving and strengthening America's industrial and providing jobs," he said. "Their product is simply deals, and that is not a product which a country ... can base a future on." Last year, Mercer fought off a takeover attempt by British industrialist Sir James Goldsmith. But Goodyear's independence was preserved at a high price, Mercer said. The company bought back Goldsmith's stock for 620 mln dlrs, giving him a 93 mln dlr profit. Goodyear also paid him 37 mln dlrs for expenses and bought about 41 mln other shares for over two billion dlrs. In an effort to trim its new debt, Goodyear closed down three plants Mercer believes otherwise could have been saved, sold its motor wheel and aerospace units and reduced its payroll by 10 pct, he said. Mercer, who plans to testify tomorrow at a Senate hearing on a proposed bill to control corporate raiders, said hostile takeovers have also hurt workers. Reuter 

<TIVERTON PETROLEUMS LTD> NINE MTHS DEC 31 NET

Shr six cts vs five cts Net 459,131 vs 289,433 Revs 1,808,832 vs 1,680,240 Reuter 

CARLING O'KEEFE <CKB> TO RETAIN FOOTBALL CLUB

Carling O'Keefe Ltd said the board decided to retain ownership of its Toronto Argonaut Football Club, after considering offers to acquire the team. The company said it received a number of expressions of interest in buying the club, of which two became formal offers to purchase. Neither offer met the company's unspecified requirements for selling the football club, Carling said. The Toronto Argonauts are a member of the Canadian Football League. Reuter 

MORE INTERMEDIATE U.S. WHEAT CREDITS FOR MOROCCO

The Commodity Credit Corporation has approved an additional 45.0 mln dlrs under its interemdiate export credit guarantee program, GSM-103, for sales of U.S. wheat to Morocco, the U.S. Agriculture Department said. The action increases Morocco's cumulative fiscal year 1987 program for wheat under GSM-103 to 75.0 mln dlrs. The credit terms extended for exports under the program must be in excess of three years but no more than seven years to eligible for credit coverage. All sales under this line must be registered and exported by September 30, 1987. The department also said the guarantee line for sales of U.S. wheat under the Export Credit Guarantee Program, GSM-102, has been decreased 45.0 mln dlrs to 60.0 mln. Reuter 

EQUITABLE LIFE LEASING NAMES PRESIDENT

Equitable Life Leasing Corp said it named Lawrence Johnes president and chief operating officer, effective April one. Johnes joined the company in November 1984 as executive vice president and chief financial officer. Edward Horman will continue as chairman and chief executive officer, the company said. Reuter 

ROYAL <RRCO> SEEKS NAME CHANGE, SHARE BOOST

Royal Resources Inc said it is calling a special shareholder meeting for April 21 seeking approval of a name change and an increase in its authorized common shares. Stockholders will be asked to change the company's name to Royal Gold Inc to better reflect the company's goal to become a gold company. Royal defines a gold company as one having more than 100,000 ounces of gold production a year. In other action, shareholders will be asked to approve an increase in authorized common stock to 20 mln from 15 mln shares. The shares are expected to be used for future acquisition of gold properties, it said. Previously, Royal said it agreed to sell its oil and gas properties to Victoria Exploration N.L. of Perth, Australia for 3.65 mln dlrs. The company's holders also will be asked to approve the transaction. Reuter 

MCA INC <MCA> SETS REGULAR QTRLY PAYOUT

Qtrly div 17 cts vs 17 cts prior Pay April 13 Record March 25 Reuter 

SOVIET GRAINS SEEN ENTERING SPRING ON SHAKY NOTE

Soviet winter grains could be off to a faulty start this spring after enduring an usually dry fall and cold winter, weather and crop analysts said. Prospects for another near-record grain harvest in the Soviet Union appear dim at this point, but it is premature to forecast any major crop problems, analysts said. But the situation bears careful watching over the next six weeks and will ultimately impact the Soviet grain supply and future buying plans, analysts of the Soviet Union said. "From a weather standpoint, you can say with certainty that the Soviets are not getting off to a good start and will have a lower crop (than last year)," Gail Martell, chief meteorologist for E.F. Hutton said. The next six weeks in the USSR's grain growing areas will be the crucial period that will determine the final outcome of the winter crops, Martell and other analysts said. "Where the crop is really made or broken is still ahead of us," an Agriculture Department authority on the USSR said. The Soviet Union recently reported that nine mln hectares of winter grain will have to be reseeded due to winterkill. This would be equal to about 25 pct of the total winter crop and would be the second highest winterkill in ten years, the USDA analyst said. With a timely spring, Soviet farmers would probably be able to reseed the damaged acreage with spring crops, but analysts noted that spring crops normally yield lower than winter crops -- sometimes as much as 30-35 pct lower. Normally winterkill is caused by inadequate snowcover combined with cold temperatures. This winter, however, snowcover in Soviet grain areas has generally been excellent, so the bulk of winterkill, analysts speculate, likely has been due to a very dry fall and subsequent poor crop germination. "Fall dryness may be a problem. There's a good correlation between mediocre crops and fall dryness," Martell said. Precipitation last fall was as little as 25 pct of normal in southern and northern Ukraine, and below normal over the entire winter crop area, she said. Recent cold temperatures in grain areas in which the snowcover has been gradually melting could also have caused problems of ice-crusting and winterkill, Jim Candor, senior forecaster for Accu Weather, said. Livestock feed needs have probably increased because of the fall and winter, analysts said. The dry fall damaged pastures, the cold winter raised feed demands and a late spring would require longer off-pasture feeding, they said. "The Soviets are not in a desperate situation ... they don't have to buy (grains) now," a USDA official said. But if the Soviets are worried about their winter crops and if they feel that last year's huge crop of 210 mln tonnes was a one-time fluke brought on by perfect conditions, more Soviet buying might occur to insure crop supplies, he said. Bad weather during the next six weeks could push the Soviets back into the market, weather analysts said. "A lot of winterkill could occur during the next month and a half," Martell said. Reuter 

ALCAN (AL) TO CLOSE WEST GERMAN SMELTER

(Alcan Aluminium Ltd) is closing its aluminum smelter in Ludwigshafen, West Germany this June due to high operating costs, an Alcan spokesman said. The smelter, near Frankfurt, had annual capacity of about 44,000 metric tons but was operating at about half that in January, spokesman Fernand Leclerc said. Leclerc said Alcan decided it would cost too much to modernize the plant. He said there is a possibility the company will sell the smelter, which currently employs 320 people, before its scheduled closing. Reuter