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CLEVITE <CLEV> GETS 13.50 DLR/SHR OFFER

Clevite Industries Inc said it received a written proposal from J.P. Industries Inc <JPI> seeking to buy all of its outstanding shares for 13.50 dlrs a share. Clevite's stock was trading on NASDAQ at 13-1/4. J.P. Industries recently completed the acquisition of Clevite's Engine Parts Division. J.P. Industries said its proposed transaction would be financed through borrowings under its available bank lines and a bridge financing facility which Donaldson Lufkin and Jenrette Securities Corp agreed to arrange. To expedite the transaction, J.P. Industries said it would be willing to start a cash tender for Clevite's shares within five days after agreeing upon a definitive merger and confirmation of Clevite's financial results and condition. Reuter 

MERCANTILE STORES MARCH SALES UP 0.5 PCT

JAPAN BUSINESS LEADERS SAY G-7 ACCORD WORRYING

The leaders of two of Japan's top business groups said in separate statements the Group of Seven (G-7) accord reached in Washington yesterday is of deep concern to Japan because it shows the major industrial nations regard the yen's current level as appropriate. Eishiro Saito, chairman of the Federation of Economic Organizations (Keidanren), said the yen's present rate is well above adequate levels. He did not elaborate. Takashi Ishihara, chairman of the Japan Committee for Economic Development, said the accord will not prevent the yen from rising further. "We do not understand why the G-7 approved present rates as the yen has risen excessively since the Paris accord," Ishihara said. Reuter 

ARGENTINE CATTLE MARKET REPORT

ABOUT 3,314 HEAD OF CATTLE WERE AUCTIONED IN LINIERS CATTLE MARKET, AGAINST 13,952 ON WEDNESDAY AND 9,217 LAST THURSDAY, TRADE SOURCES SAID. MAXIMUN PRICES, IN AUSTRALES PER KILO, WITH DOLLAR EQUIVALENT IN BRACKETS, INCLUDED: TODAY WEDNESDAY STEERS OVER 480 KILOS 1.02(0.658) 1.015(0.654) STEERS 460 TO 480 KILOS 1.05(0.677) 1.032(0.665) COWS FOR CANNING 0.56(0.361) 0.56 (0.361) REUTER 

WEST GERMANY'S THESING ISSUES 10 MLN SFR BOND

<Thesing-Verwaltungsgesellschaft GmbH> of Coesfeld, West Germany, is issuing a 10 mln Swiss franc eight year bond with an indicated 6-3/8 pct coupon and par issue price, joint lead managers Fintrelex SA and E.Gutzwiller und Cie, Banquiers said. Subscription is from May 7 until May 13. The issue is guaranteed by Schallplattentruhe A. Thesing GmbH und Co Kommanditgesellschaft, Martin Thesing Handelsgesellschaft. REUTER 

MERCANTILE STORES <MST> MARCH SALES UP 0.5 PCT

Mercantile Stores Co Inc said sales for the five weeks ended April four were up 0.5 pct to 184.7 mln dlrs from 183.7 mln dlrs a year earlier, with same-store sales off 1.7 pct. Mercantile said sales for the first nine weeks of its fiscal year were up 2.9 pct to 297.9 mln dlrs from 289.6 mln dlrs a year before, with same-store sales up 0.5 pct to 288.6 mln dlrs from 287.3 mln dlrs. Reuter 

BEST PRODUCTS <BES> MARCH SALES OFF 0.5 PCT

Best Products Co Inc said sales for the five weeks ended April four were off 0.5 pct to 151.2 mln dlrs from 152.0 mln dlrs a year earlier. It said year-to-date sales were off 5.9 pct to 263.2 mln dlrs from 279.6 mln dlrs a year before. Reuter 

AMERICAN WOODMARK <AMWD> TO BUILD PLANT

American Woodmark Corp said it plans to build a 100,000 square foot kitchen cabinet component plant in Toccoa, Ga., with completion expected in the spring of 1988. Reuter 

K MART <KM> MARCH SALES SHOW INCREASE

K mart Corp said its sales for the five weeks ended April One rose 4.6 pct to 2.18 billion dlrs from 2.08 billion dlrs a year earlier. On a comparable store basis, sales rose one-tenth of one pct. It said year-to-date sales increased 7.9 pct to 3.64 billion dlrs from 3.37 billion dlrs in the same 1986 period. On a comparable store basis, the increase was 3.2 pct. Reuter 

U.K. MONEY MARKET DEFICIT REVISED DOWNWARD

The Bank of England said it has revised its estimate of today's shortfall to 350 mln stg from 400 mln, before taking account of 103 mln stg morning assistance. REUTER 

PHYSIO TECHNOLOGY <PHYT> SEES LOSS, IN DEFAULT

Physio Technology Inc said it expects to have a third quarter, ended March 31, loss of about 200,000 dlrs and is in default on its bank loan because of the resignation of chairman and chief executive officer. The company said the loss followed four quarters of modest profits. In the year ago quarter it earned 11,000 dlrs, or one cent a share. For the first half of fiscal 1987, it reported a profit of 42,000 dlrs, or two cts a share, compared to a year earlier loss of 294,000 dlrs, or 17 cts a share. It said President Michael R. Hall will assume the duties of chief executive officer. Physio Technology said the resignation of Chairman James C. Lane can constitute non-compliance with its Series A convertible subordinated debentures due 1996 and a default under its agreement with the Merchants Bank of Kansas City. It explained a declaration of non-compliance under the debentures would create a a default under the loan agreements requiring immediate payment of 1.8 mln dlrs of debentures and about 450,000 dlrs outstanding under the bank credit line. The company said the debenture holders intend to waive the non-compliance, but reserve the right to withdraw the waiver at the end of any 30 day period. Physio Technology said it is changing its field sales force to independent representatives and dealers from employees to "significantly reduce its fixed overhead." Its statement did not indicate how many employees would be affected by the move. The company said Lane will become an independent dealter for the company in certain midwestern states. He will continue to serve as a director, it added. Reuter 

TEXAS INTERNATIONAL <TEI> RETIRES SOME NOTES

Texas International Co said it has retired 2,700,000 dlrs of its 10 pct third delayed convertible snior subordinated notes of 1993 Series A and B. As a result, it said it has eliminated the scheduled May 1987 conversions of 1,300,000 dlrs of Series A notes and 1,400,000 dlrs of Series B notes. Reuter 

DERLAN INDUSTRIES PLANS PRIVATE PLACEMENT

<Derlan Industries Ltd> said it plans to issue 2.1 mln common shares in a private placement at a price of 14 dlrs per share for gross proceeds of 29.4 mln dlrs. The issue will be placed by McLeod Young Weir Ltd and Loewen, Ondaatje, McCutcheon and Co Ltd. Proceeds will be used by the company to continue its acquisition program and for internal expansion. Reuter 

COMPAQ <CPQ> AWARDED 1988 GSA CONTRACT

Compaq Computer Corp said the General Service Administration has awarded it a contract allowing federal agencies to purchase COMPAQ personal computers until March 31, 1988. The previous Compaq GSA contract expired March 31. Under the new agreement, federal agencies can order the COMPAQ presonal computers through any one of 1,400 authorized COMPAQ computer government dealers without going through time-consuming competitive bids. Puchases of over 300,000 dlrs, however, must still be bid competitively, Compaq said. Reuter 

WASHINGTON FEDERAL SAVINGS <WFSL> 2ND QTR NET

Qtr ends March 31 Shr one dlr vs 76 cts Net 11.9 mln vs 8,929,000 Six mths Shr 1.92 dlrs vs 1.43 dlrs Net 22.8 mln vs 16.8 mln NOTE: full name of bank is washington federal savings and loan association. Reuter 

COMINCO <CLT> TO FORM EXPLORATION UNIT

Cominco Ltd said it is forming a new publicly held company, Cominco Resources International Ltd, to continue exploration and development of its mineral holdings outside Canada, Alaska and Australia. Cominco will maintain a majority position in the company, but the remaining interest will be sold in offerings led by Wood Gundy Inc and First Marathon Securities Ltd in Canada, and S.G. Warburg Securities and Wood Gundy Inc internationally. Cominco said it is filing a preliminary prospectus with securities regulators in all Canadian provinces. Reuter 

CALFED <CAL> FORMS INSURANCE UNIT

CalFed Inc said it has entered the property-casualty insurance business through the formation of Anglo-American Insurance Co Ltd, a London-based subsidiary initially capitalized at 80 mln dlrs. The company said <London United Investment PLC> will share equally in all risks, premiums and reinsurance with Anglo-American and perform all underwriting activities for Anglo-American. It said more than half of the venture's business is expected to be in the U.S. Reuter 

SEKISUI CHEMICAL ISSUES EQUITY WARRANT EUROBOND

Sekisui Chemical Co Ltd is issuing a 200 mln dlr equity warrant bond due May 7, 1992 paying an indicated coupon of two pct and priced at par, lead manager Yamaichi International (Europe) Ltd said. The issue is guaranteed by Sanwa Bank Ltd and is available in denominations of 5,000 dlrs. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7 while listing will be in Luxembourg. Final terms will be fixed on April 15. The warrants are exercisable from May 20, 1987 until April 20, 1992. REUTER 

PAYLESS CASHWAYS <PCI> MARCH SALES UP

Payless Cashways Inc said its sales for the five weeks ended April Four rose to 167.4 mln dlrs from 147.5 mln dlrs a year ago, or one pct on a comparable store basis. Year to date, it said sales gained to 499.6 mln dlrs from 422.0 mln dlrs, or four pct on a comparable store basis. Reuter 

U.S. ENERGY FUTURES CALLED UNCHANGED TO LOWER

Traders expect U.S. energy futures will open unchanged to slightly lower this morning with support near yesterday's lows. Crude futures are called unchanged to five cts weaker tracking unchanged domestic crudes and North Sea Brent crude, which traded at 18.01 dlrs a barrel today, about ten cts below yesterday's New York close. Traders said the supply squeeze in 15-day forward April Brent appears to have ended. Product futures, which fell sharply yesterday, are due to open unchanged to 0.25 cent lower, traders said. Traders expect some followthrough selling in products but said gasoil futures in London will probably lend some support since they are trading as expected. May gasoil futures were off 1.50 dlrs a tonne this morning while June was down 1.25 dlrs in thin conditions. Reuter 

PONCE FEDERAL BANK F.S.B. <PFBS> 1ST QTR NET

Shr 63 cts vs 89 cts Net 3,425,216 vs 3,370,682 Avg shrs 5,421,330 vs 3,803,425 NOTE: net for both qtrs reflects gains on sales of securities of 1,755,137, or 51 pct of net, in 1987; and 3,001,222, or 89 pct of net in 1986. Reuter 

BUNDESBANK SEES NO REASON TO CHANGE MONETARY COURSE - VICE-PRESIDENT SCHLESINGER

U.K. MONEY MARKET DEFICIT REMOVED

The Bank of England said it has satisfied its revised estimate of today's shortfall in the money market, providing 261 mln stg assistance in afternoon operations. The Bank bought in band one, 60 mln stg bank bills at 9-7/8 pct and in band two 200 mln stg bank bills and one mln stg treasury bills at 9-13/16 pct. This brings the total help so far today to 364 mln stg, compared with its deficit estimate of 350 mln stg. REUTER 

STOP AND SHOP'S <SHP> BRADLEES MARCH SALES RISE

Stop and Shop Cos Inc said its Bradlees Discount Department Stores Division's sales for the five weeks ended April four were up six pct to 156 mln dlrs from 147 mln dlrs a year before, with same-store sales up one pct. The company said sales for the first nine weeks of the year were up six pct to 259 mln dlrs from 245 mln dlrs a year before, with same-store sales up two pct. Reuter 

CHINA LIKELY TO JOIN GATT, DIPLOMATS SAY

China is likely to succeed in joining GATT despite policies that contradict free trade, because western countries support its entry, western diplomats said. China applied to join the General Agreement on Tariffs and Trade (GATT) in July 1986. The organisation, formed in 1948 to integrate the world's free market economies, now regulates 80 pct of world trade. The GATT secretariat is expected to submit a list of detailed questions to China next month at the start of long and complex entry negotiations, the diplomats said. One diplomat said China's prospects are good, with its application supported by the United States, Japan and the European Community for political and economic reasons. "The fear is that if China was refused entry, it would draw back the bamboo curtain and go back to the way it was," he said. Another said the Soviet Union was waiting in the wings. "If GATT accepted China, it would be hard not to accept the Soviet Union," he said. "China's agreement will be seen as a model for the Soviet Union. GATT is not a political body." But serious problems have to be tackled during the talks, including China's pricing system and trade subsidies. GATT is based on free trade and aims to lower tariffs and promote trade, with prices alone dictating who buys what. One diplomat said it was very hard in China to establish the real cost of goods because many prices are set by the state and often contain subsidies. Reuter 

WANG <WAN> SIGNS MARKETING AGREEMENT

Wang Laboratories said it signed an agreement with <Desk Top Financial Solutions Inc> giving Wang the right to market the Desk Top Financial Planning System for Wang's Office Information Systems (OIS) product line. Wang said the Desk Top Financial Planning System for its OIS comes in two basic packages -- the Advanced Planning System, priced at 2,995 dlrs, and the Budget Reporting System, priced at 1,995 dlrs. Both are avialable on eight inch and 5-1/4 inch diskettes, Wang said. Reuter 

LEBANESE POUND FALLS SHARPLY AGAINST DOLLAR

The Lebanese Pound fell sharply against the U.S. Dollar again today with dealers attributing the decline to continued political uncertainty. The pound closed at 118.25/118.75 against the dollar compared to yesterday's close of 115.60/115.80. "Political deadlock is reflected in the pound's position. There was more demand and less on offer in the market," one dealer told Reuters. The pound, which was at 18 to the dollar in January, 1986, has lost more than 30 pct of its international value over the past three months. REUTER 

BROWN BOVERI UND CIE AG LIFTS 1986 DIVIDEND

Dividend on 1986 business 12 marks per share vs seven marks. (Company is a subsidiary of Switzerland's BBC AG Brown Boveri und Cie <BBCZ.Z>). Reuter 

RIO TINTO CUTS DEBT-EQUITY RATIO

Rio Tinto-Zinc Corp Plc <RTZL.L> cut its balance sheet gearing, measured as net debt as a proportion of equity, to 35 pct at the end of 1986 from 61 pct a year earlier, finance director Andrew Buxton told reporters. He said currency movements last year did not greatly affect the earnings outcome, though had a greater impact on the balance sheet. At year-end, 40 pct of its assets were industrial, 35 pct in metal mining and processing and 25 pct in energy. Earlier, RTZ reported 1986 net attributable profit of 245 mln stg against 257 mln the previous year. Reuter 

TALKING POINT/SEMICONDUCTOR BOOK TO BILL RATIO

The Semiconductor Industry Association is expected to report the sixth straight increase in its three-month average book-to-bill ratio, reflecting a continued modest recovery in the computer chip industry, semiconductor analysts said. Semiconductor analysts contacted by Reuters put the March book-to-bill -- which is the ratio of new orders to actual sales -- at around 1.15, up from a preliminary 1.13 in the three months ended in February. The association is expected to release its estimates later today or on friday. The analysts said they expect strong March performance both in new orders and actual sales. Michael Gumport, analyst with Drexel Burnham Lambert Inc, projected the three-month average of new computer chip orders at about 835 mln dlrs, up from 788 mln dlrs in February. He put three-month average sales at about 720 mln dlrs, also an increase from the 700 mln dlrs reported last month. Gumport said average new orders over 850 mln dlrs would be a plus for semiconductor industry stocks, while orders under 800 would be interpreted negatively on Wall Street. Gumport said cut backs in Japanese computer chip production are aiding U.S. chip maker orders and sales. Edward White, analyst with E.F. Hutton Group Inc, said while Japanese cut backs may be a small factor, their effect should be more readily apparant in April and May. White, who put the March book-to-bill ratio at 1.15-1.16, said the ratio might hit 1.20 later this spring, before showing a normal seasonal decline during the summer. He forecast three-month average orders at 825 mln dlrs for March, with three-month average billings at about 711 mln dlrs. "This says the industry is still in a phase of moderate recovery...it is not dramatic yet," said White. He said the industry still has not seen a pick-up in high technology capital spending needed to create a strong recovery. He said a boost in spending on such big-ticket items as mainframe computers would enhance the recovery, which is now focused on personal and small business computers. Kidder Peabody and Co analyst Michael Kubiak agreed the industry is showing a recovery trend, that while encouraging, is not dramatic. Kubiak projected the March book-to-bill ratio at 1.14. He said the three-month average for orders will be up about 4.5 pct from last month, while shipments rise about one pct. He noted, however, orders during the month of March alone, a statistic the Semiconductor Industry Association does not publish, should show a 15-20 pct rise from February orders. Kubiak said a book to bill ratio of 1.14 would have little or no effect on semincondutor industry stocks, while a ratio of 1.13 would be negative for the market and a ratio of 1.16 would likely cause the stocks to rise. Reuter 

LONDON FREIGHT MARKET FEATURES GRAIN OUT OF U.S.

Moderately active grain fixing was reported out of the U.S. But none of the business involved the significant voyages to the Continent or Japan, ship brokers said. A steady 13.50 dlrs was paid from the U.S. Gulf to Morocco and 23.25 dlrs was paid for 27,000 long tons from the Gulf to Taiwan. A vessel carrying 13,500 long tons of bagged wheat flour from the Gulf to Aqaba received a lump sum of 472,500 dlrs. Grain from the Great Lakes to Algeria made 28 dlrs against 27.75 paid for similar fixing towards the end of March. Market talk suggested a Federal Commerce vessel had been booked to move grain from the Great Lakes to Morocco on Comanav account at about 22 dlrs and 15.50 had been paid for a cargo of oilseeds from British Columbia to Japan, but no confirmation was obtainable. On the Continent, shippers agreed 19 dlrs for wheat from La Pallice to Buenaventura and 10.75 dlrs for grain from Ghent to Naples/Venice range. Elsewhere, maize from East London to Japan paid 22 dlrs. Soviet charterers reappeared in the timecharter sector and secured a 30,000 tonner from Savona for a trans-Atlantic round trip at 4,450 dlrs daily and a 31,000 tonner from Antwerp-Hamburg for a similar voyage at 4,250 dlrs daily. Reuter 

HOG AND CATTLE SLAUGHTER GUESSTIMATES

Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 287,000 to 295,000 head versus 292,000 week ago and 322,000 a year ago. Cattle slaughter is guesstimated at about 124,000 to 128,000 head versus 129,000 week ago and 134,000 a year ago. Reuter 

SENETEK <SNTKY> UNIT TO MARKET AIDS TEST

Senetek PLC said its Senetek A/S Danish subsidiary has signed a letter of intent to market <Diagnostic Biotechnology Co Pt Ltd> of Singapore's AIDS antibody tests to the health care industries in Britain and the Scandinavian countries. The company said its 49 pct owned Tessek Ltd joint venture affiliate in Prague has also signed a letter of intent to market Diagnostics AIDS tests in Czechoslovakia and other Comecon countries. It said Tessek has agreed to exchange research information with Diagnostic in the development of a new AIDS diagnostic kit using Tessek technology. Reuter 

EUROCHEQUE EXPECTS AROUND 10 PCT CARD GROWTH

The number of cards in the Eurocheque system, Europe's biggest personal payments system, grew by 11 pct to 39.1 mln last year and is expected to continue increasing by around 10 pct in coming years, Eurocheque International Secretary General Mark Van Wauve said. He told a news conference Eurocheque cards can now be used in 40 European and Mediterranean countries to back Eurocheques written in local currency and, where facilities are available, as electronic debit cards. The system would have 5,000 automatic cash dispensers by the end of this year and aimed to have 25,000 throughout Europe by 1992. Eurocheques and cards are issued by banks in 21 countries. Van Wauve said Italian banks, who already accept Eurocheques, had recently asked to be allowed also to issue Eurocheques and cards to their clients. It was possible these would be launched in Italy this year if the Rome government agreed to lift exchange controls that prevent residents writing cheques abroad in any currency but lira, he told Reuters. Eurocheque International, the system's Brussels-based coordinating centre, was also reviewing a request from the Soviet Union for permission to issue cheques and cards. Eurocheque's agreements with banks do not permit them to charge commissions from clients using Eurocheques, and Van Wauwe said problems with French banks that have demanded such commissions had been reduced to a minimum last year. Eurocheques can also be used to pay in local currency for goods and services bought in over five mln retail outlets in 28 countries, with Hungary, Tunisia and Greece added to the system this year. East Germany last year became the 40th country to accept Eurocheques, made out in dollars, at banks and shops. Eurocheque International estimated the total of Eurocheques used nationally and internationally at over one billion a year. REUTER 

WHIRLPOOL CORP 1ST QTR SHR 66 CTS VS 67 CTS

BRAZILIAN SOY RAINFALL

THE FOLLOWING RAINFALL WAS RECORDED IN THE 24 HOURS UP TO (1200) GMT TODAY PARANA STATE: CASCAVEL NIL, PONTA GROSSA NIL,CAMPO MOURAO NIL, LONDRINA NIL, MARINGA NIL. RIO GRANDO DO SUL STATE: PASSO FUNDO NIL, SANTA MARIA 7.0 MILLIMETRES, CRUZ ALTA 8.5 MM, SAO LUIZ GONZAGA 4.4 MM. REUTER 

BIOTHERAPEUTICS <BITX> REPORTS DRUG FINDINGS

Biotherapeutics Inc said its cooperative findings on interleukin-2, the anti-cancer drug, were published today in the "New England Journal of Medicine". Biotherapeutics, along with the Biological Therapy Institute and the National Cancer Institute, said the publication focused on a reduction in toxicity through the use of a constant infusion mode of intravenous administration protocol. Reuter 

WAL-MART STORES <WMT> MARCH SALES RISE

Wal-Mart Stores Inc said March sales were up 32 pct to 1.13 billion dlrs from 855 mln dlrs a year earlier, with same-store sales up eight pct. The company said sales for the first two months of its fiscal year were up 37 pct to 2.01 billion dlrs from 1.47 billion dlrs a year before, with same-store sales up 11 pct. Reuter 

BUNDESBANK SEES NO CHANGE IN MONETARY COURSE

The Bundesbank sees no current reason to change monetary course, vice-president Helmut Schlesinger told Reuters in a telephone interview. Schlesinger was responding to questions following remarks yesterday by Bundesbank board member Claus Koehler and West Berlin state central bank president Dieter Hiss, which, dealers said, revived some speculation that German interest rate cuts may once again be under discussion. Schlesinger said he had no comment on the remarks of his two central bank council colleagues. But he added that the last central bank council meeting on April 2 had discussed the economic situation with a mood of "subdued optimism," particularly influenced by the news brought by several state central bank presidents. "Much is going better than the impression gained by the public from the January figures, which have been in the meantime superseded," he said. German January industrial output fell 3.0 pct after a decline of 0.9 pct in December. New industry orders fell 1.9 pct after they had been unchanged in December. Bank economists said that the two together showed the economy would either stagnate or contract in the first quarter of 1987. Aside from the economic developments, Schlesinger added, a steady monetary course was important to hold the dollar/mark rate around current levels as Bundesbank president Karl Otto Poehl had said while attending the Washington World Bank/IMF meeting. Asked, however, if the Bundesbank could move to cut rates on repurchase agreements at the setting of the next repurchase tender, due next Tuesday, Schlesinger said, "Since the central bank council gives its opinion on this theme only every 14 days, this is hardly probable." Responding to the question whether the Bundesbank had moved away from a policy of targetting monetary growth toward one of targetting currency rates, Schlesinger said he could have no comment on the subject while negotiations were still in progress in Washington. REUTER 

BRAZILIAN COFFEE RAINFALL

THE FOLLOWING RAINFALL WAS RECORDED IN THE AREAS OVER THE PAST 24 HOURS PARANA STATE: UMUARAMA NIL, PARANAVAI NIL, LONDRINA NIL, MARINGA NIL. SAO PAULO STATE PRESIDENTE PRUDENTE NIL, VOTUPORANGA NIL, FRANCA NIL, CATANDUVA NIL, SAO CARLOS NIL, SAO SIMAO NIL. MINAS GERAIS STATE: GUAXUPE NIL, TRES PONTAS NIL. REUTER 

HOKKAIDO TAKUSHOKU CONVERTIBLE EUROBOND COUPON CUT

The coupon on the 100 mln dlr, 15-year, convertible eurobond for Hokkaido Takushoku Bank Ltd has been set at 1-3/4 pct compared with the indicated two pct, joint-lead bookrunner Yamaichi International (Europe) Ltd said. The conversion price was set at 1,052 yen, while the foreign exchange rate was fixed at 146.20 yen per dollar. REUTER 

E.F. HUTTON LBO INC SAID TENDER OFFER BY PC ACQUISITTION FOR PUROLATOR COURIER EXPIRED

WORLD BANK TO SUPPORT SRI LANKA IF DEFICITS CUT

The World Bank will support Sri Lanka's development program provided the country reduces its budget and current account deficits, the Ministry of Finance said. It said Bank President Barber Conable at a meeting with Sri Lanka's Finance Minister Ronnie de Mel in Washington also emphasised the need for structural adjustment and reform to the economy, battered by five years of separatist disturbances. Officials said Sri Lanka's budget deficit this year is expected to surpass the projected 28.7 billion rupees while defence spending, already up by two billion rupees from a targetted 10 billion, is also likely grow. The Ministry said de Mel asked the World Bank to give Sri Lanka 6.5 billion rupees balance of payments support. REUTER 

E.F. HUTTON LBO INC SAYS UNIT TERMINATES MERGER AGREEMENT WITH PUROLATOR COURIER

GEMINA HAS NO COMMENT ON AMBROSIANO REPORT

Holding company <Gemina Spa> said it had no comment on an Italian press report today that it has acquired a 12 pct stake in <Nuovo Banco Ambrosiano Spa>. Italian daily La Repubblica said that Gemina paid 205 billion lire for the shareholding from several Italian banks. A Gemina spokeswoman told Reuters, "We have nothing to say about the report." A spokeswoman for Milan-based Ambrosiano said, "We have no information at this time." In February, Ambrosiano chairman Giovanni Bazoli said foreign and domestic firms have expressed interest in buying stakes in the bank. REUTER 

SEARS, ROEBUCK <S> MARCH RETAIL SALES UP

Sears, Roebuck and Co said retail sales of its Merchandise Group in March rose 4.2 pct to 2.62 billion dlrs from 2.51 billion dlrs a year ago. For the nine weeks ended April Four, Sears Merchandise Group sales rose 4.5 pct to 4.46 billion dlrs from 4.27 billion dlrs in the same 1986 period. Reuter 

VOLKSWAGEN DIVIDEND UNCHANGED ON 1986

Dividend on 1986 business unchanged at 10 marks per ordinary share. Company also set dividend of 11 marks for new preference shares, which were issued last year. (Note: Company has said profit will match 1985 level, despite provisions of 480 mln marks connected with alleged currency fraud. Group net profit in 1985 was 596 mln marks, parent company net was 477 mln marks. Company's full name is Volkswagen AG <VOWG.F>). REUTER 

WHIRLPOOL CORP <WHR> 1ST QTR NET

Shr 66 cts vs 67 cts Net 48,700,000 vs 49,300,000 Sales 961.0 mln vs 870.6 mln Avg shrs 74,123,837 vs 73,374,398 Reuter 

U.S. SAID TO VIEW G-7 MEETING AS MAJOR SUCCESS

The United States, which has long sought Japanese action to stimulate its economy, appears to be satisfied Tokyo's latest package is a major development and allows leading industrial nations to reaffirm their agreement to stabilize currencies. Monetary sources said they believed that U.S. Treasury Secretary James Baker considered Tokyo's package, announced yesterday, to be a major stimulation of the Japanese economy. But yesterday's statement by seven leading industrial powers endorses the yen's rise from around 153 to the dollar, the level at the February 22 Paris Accord, to about 145 today. And the initial reaction of currency markets in the Far East demonstrates that financial markets are unconvinced that currencies yet reflect economic fundamentals, even though the countries appear to do so. The yen sank below 145 at one point despite intervention by the Bank of Japan. Kiichi Miyazawa, Japan's Finance Minister, said the movement since Paris was consistent with currency trading ranges the nations agreed to defend in the February talks. "I would say that what has happened (to the yen) in the past several weeks was not outside the range we agreed to in the discussions in Paris," Miyazawa said yesterday. The supplementary budget worth about 34.48 billion dlrs was announced by the ruling Liberal Democratic Party on the eve of Miyazawa's departure for Washington, to attend yesterday's meetings of leading industrial nations. In a strongly worded statement terming the Japanese action "extraordinary and urgent", the meeting reaffirmed the Paris Accord by noting that current exchange rates are within ranges broadly consistent with fundamentals, or economic reality. The Group of Seven -- the United States, Japan, West Germany, France, Britain, Italy and Canada -- therefore repeated their willingness to continue close cooperation to foster exchange rate stability. The cooperation agreement has resulted in concerted central bank intervention of 8 billion to 9 billion dlrs to halt the dollar's fall. While relatively unsuccessful, the scale of intervention between so many nations is unprecedented in recent years. Monetary sources also said they understood that Secretary Baker considered the meeting to be extremely successful in the light of the Japanese announcement. They also said there was a growing feeling among the finance ministers and central bankers that cooperation over medium-term policies has replaced the bickering over short-term differences in past meetings. West Germany, whose currency has not risen anything like the yen since the Paris Agreement, appears from the face of yesterday's statement to have won acceptance from other countries that its exchange rate is acceptable. Bonn's finance minister Gerhard Stoltenberg argues that major currency shifts needed to remedy the huge imbalance between West Germany and Japan's trade surpluses and America's trade deficit have already taken place. No mention was made, however, of the U.S. commitment to cut the budget deficit even though it is implied in the reafffirmation of Paris. European nations and Japan believe deficit cuts are essential to curbing the record U.S. trade shortfall that reached nearly 170 billion dlrs last year. A similar argument was made on Capitol Hill earlier this week by Federal Reserve Board chairman Paul Volcker. A further sharp fall to redress trade imbalances would "clearly pose substantial risks of renewed inflationary momentum and could undermine confidence in future financial stability," he said. Volcker warned a further dollar fall might force the politically independent Fed to drive up interest rates. Monetary sources said that, privately, West Germany welcomed the rise in the yen against the dollar while its own currency remained relatively stable against the U.S. unit. Bonn and other European nations worry that once the weak dollar blunts Tokyo's export drive to the United States, the Japanese monolith will concentrate on European markets. The ministers, meanwhile, also continued talks on making their policy coordination more binding and one, Canadian Finance Minister Michael Wilson, said good progress was made. Wilson said they will meet before the June Economic Summit to prepare a report for the leaders of the seven nations. The United States and France, backed by the International Monetary Fund, want the seven to agree on ranges or "norms" for a limited number of economic objectives such as growth, inflation, monetary conditions, trade balances and current account balances. Sharp deviations from these guidelines would result in consultations between the countries on whether corrective action should be required. But the inclusion of currencies as one of the objectives has Bonn and London worried, monetary sources say, because it implies Washington is moving in the direction of target zones. The sources said the Reagan administration unsuccessfully sounded out its allies on a system of target zones to limit currency fluctuations just before the February meeting. The concept is a much more rigid one than the secret ranges of the Paris Accord and would mark a sharp departure from the relatively free currency markets of recent years. Reuter 

BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED

The Bank of France said it left its intervention rate unchanged at 7-3/4 pct when it injected funds in the market against first category paper in today's money market intervention tender. Money market dealers had earlier expressed mixed views on the possibility of quarter point cut. The rate was last adjusted on March 9, when it was cut to 7-3/4 pct from the eight pct rate set in January. REUTER 

GLOBAL ECONOMIC SLOWDOWN RAISES NEW DEBT FEARS

The global economy is expected to weaken this year, adding new worries to an already serious poverty outlook, economic analysts said. For finance ministers and central bankers attending this week's semi-annual meetings of the International Monetary Fund and World Bank, the new figures released by the IMF add an additional concern. The Fund estimated world output would only grow by 2.7 pct this year, versus 2.9 pct last year, and 3.1 pct in 1985. In the industrial countries, Gross National Product, a measure of all goods and services, was expected to decline to 2.3 pct this year, compared with 2.4 pct in 1986, the IMF said. For the developing countries, the Gross Domestic Product, another measure of economic growth, was expected to fall to 3.0 pct from 3.5 pct last year. The new figures are considered a major disappointment to the poorest countries. They had hoped that new vitality in the industrial countries brought on by a sharp decline in oil prices would assist their economic recovery and help them cope with growing mounds of debt. IMF officials, discussing their outlook, said they believed the industrial country economies would move up to an annual growth rate of three pct by the end of the decade. Economic analysts and the IMF have been saying for some time that the ability to keep the debt crisis from turning into an economic rout rests on sustained economic growth. Since the debtor countries must look to the wealthier states for markets for their products as well as financial assistance, economic weakness in the developed nations' economies poses fundamental worries. Debtor countries, including the very poorest states, have only a few avenues open to them for earning foreign exchange, including the key one of exports. The U.S. economy, which is in its fifth year of expansion, has served as a mainstay for developing country exports, but it too is seen as being rather feeble this year, growing by only 2.3 pct, according to the IMF. For this reason and because of a high trade deficit, the United States has been pressuring Japan and West Germany to ignite their economies but with little apparent success. The IMF study also examines the course of the dollar and the curious lack of impact it has had on the U.S. trade deficit. Reagan administration officials have been saying that the impact is now beginning to show up, although it has been much slower than expected. The IMF observed in its World Economic Outlook that "it has to be recognized that exchange rate adjustments take time to work through to payments flows -- probably at least three years to get a resonably complete effect." The report added, however, "the adjustments may take even more time on this occasion." REUTER^M 

SPANISH EMPLOYERS WORRIED BY HIGH INTEREST RATES

The head of Spain's employers' federation, Jose Maria Cuevas, said employers were worried about the government's monetary policies because high real interest rates were hampering investment. He told a news conference wage pacts signed so far this year were not endangering the government's five pct inflation target. The government's perceived need to control inflation by keeping a tight rein on credit was unnecessary, he said. High real interest rates were attracting an influx of speculative foreign capital which was undercutting the government's target for monetary growth, Cuevas said. Spain's most closely-watched measure of money supply, liquid assets in public hands, grew at an annualised rate of 17 pct in March, against 11.4 pct in December last year and a target range of 6.5 to 9.5 pct for 1987. To combat this, the Bank of Spain has raised its call money rate 14 times so far this year, to 14.5 pct at present from 11.8 at end-1986. Cuevas said employers were heeding the government's call to hold wage increases to its five pct inflation target this year, with increases from salary reviews awarded last year and new wage pacts averaging 5.6 pct in the first quarter of 1987. These agreements covered less than 40 pct of Spanish workers, Cuevas said, with the rest still in wage negotiations. He said Spain's current wave of strikes mainly affected the state sector, where the government is trying to impose its five pct wage ceiling. Cuevas said employers were also worried about the trend in Spain's foreign trade balance. The trade deficit in the first two months of 1987 totalled 233 billion pesetas, a 68 pct increase over the corresponding period last year. However, employers did not favour a devaluation of the peseta to correct the imbalance. REUTER 

SHOWBOAT <SBO> DECLARES STOCK SPLIT

Showboat Inc said its board declared a two-for-one stock split, payable to shareholders of record on May 15. Reuter 

J.C. PENNEY <JCP> MARCH SALES OFF 1.3 PCT

J.C. Penney Co Inc said sales for the five weeks ended April Four for its JCPenney stores and catalog were off 1.3 pct to 1.12 billion dlrs from 1.13 billion a year before, with same-store sales off 1.5 pct. The company said total company sales were off 0.2 pct to 1.25 billion dlrs from 1.26 billion dlrs. Penney said sales for ther first nine weeks of its fiscal year for its JCPenney stores and catalogs were up 1.3 pct to 1.90 billion dlrs from 1.87 billion dlrs a year before, with same-store sales up 1.2 pct. Penney said year to date sales company-wide were up 2.3 pct to 2.14 billion dlrs from 2.09 billion dlrs, with same-store sales up 2.2 pct. Penney said "Sales were in line with expectations in light of the shift of Easter from March in 1986 to April this year. Sales continued strong for catalog operations and, geographically, ranged from very active in the East to weak in the economically depressed Southwest. Reuter 

SUPERMARKETS GENERAL <SGL> FIVE WEEK SALES

Supermarkets General Corp said its sales were 540.9 mln dlrs for the five-week period ended April 4, 1987, a 7.8 pct increase over sales of 501.8 mln dlrs for the comparable period a year ago. For the nine-weeks of its current fiscal year through April 4, the company said sales were 965.8 mln dlrs, a 7.5 pct increase over 898.2 mln dlrs for the comparable period last year. Reuter 

LEAD PRICES RISE ON FINELY BALANCED PHYSICALS

Lead prices have risen this week against a background of a finely balanced physical sector, traders said. Further gains are possible if the USSR steps up its buying or if labour problems develop in North America, they added. London Metal Exchange (LME) prices are unusually buoyant at a time of year when seasonal demand is normally slackening and prices tending to drift lower. This buoyancy is generally attributed by traders to the low level of LME stocks and steady, if unspectacular, physical demand in the Northern Hemisphere finding supplies curtailed. The supply problems are not new but are beginning to be felt by a market in which, as peak winter demand tails off, stocks usually build fast and availability increases, traders said. The lower supply levels result from a number of different factors around the globe. Delayed shipments from Peru to Mediterranean countries because of production and transport problems, lack of Spanish exports since the closure last year of Cia La Cruz's smelter at Linares and lower output in Morocco and Greece have all meant additional demand being directed to merchants who in turn have been drawing on LME stocks. In addition Broken Hill Associated Smelters' Port Pirie, South Australia, smelter is halting production for five weeks for maintenance. Although the company said it would meet commitments, this will put further pressure on stocks. And the U.S. Company Doe Run has kept its 140,000 tonnes per year Boss, Montana smelter closed. This cut producer stocks and contributed to a closer supply/demand balance within the U.S. Market, for many years depressed by surplus production and a regular supplier to the world market. Mexican supplies, which have sometimes swelled LME stocks, have been normal but are finding ready buyers, traders said. On the demand side, winter battery manufacture has held up quite well and some U.S. Buying of lead sheet has been reported in the U.K. Soviet lead buying, notably absent in Europe in the first two months of the year, was resumed when a large buying order was filled by merchants in March. Merchant demand has fuelled the rise in LME lead prices this week and has seen cash metal move above 320 stg and establish a premium of around 10 stg over three months delivery. Specific demand has been directed towards metal in Gothenburg and Trieste warehouses. Gothenburg material is often a target for merchants shipping to the USSR, traders said. On stocks, the popular LME Continental warehouses, Antwerp and Rotterdam, have little more than 3,000 tonnes of lead each, and this is believed to be in strong hands. Out of a total 22,125 tonnes in LME stocks, the lowest level since June 1980, just over half is in U.K. Warehouses which are not popular with merchants putting together shipments. But even U.K. Stocks have dropped around 6,000 tonnes since the start of the year. Traders said this is partly due to secondary smelters buying ingots to supplement feed supplies affected by environmental controls, which put restrictions on the transport of used batteries. Labour negotiations in North America will play an important part in determining the direction of prices, with contracts expiring end-April at Cominco's Trail and Kimberley, B.C., Mine/smelter and at Doe Run's Herculaneum, Mo, smelter. Noranda's New Brunswick mine/smelter also has a contract expiry in July which may cause some nervousness in view of strikes by its zinc and copper workers over recent months. Traders said LME three months delivery, already attracting speculative buying, could rise to 320/330 stg on current firmness, while nearby tightness could widen the cash premium to 20 from four. Three months was quoted at 313 stg at midsession. Reuter 

F. W. WOOLWORTH <Z> MARCH SALES UP 0.2 PCT

F. W. Woolworth Co said sales for the five weeks ended april 4 rose 0.2 pct to 591 mln dlrs from 590 mln dlrs. Domestic sales decreased 4.4 pct to 355 mln dlrs from 371 mln dlrs and foreign sales, expressed in U.S. dlrs, rose 7.9 pct, the company said. If foreign exchange rates had remained constant, foreign sales would have decreased 4.0 pct and total sales 4.2 pct, it said. For the nine weeks, total sales rose 4.3 pct to 1.01 billion from 964 mln dlrs. Domestic sales of 604 mln dlrs were unchanged and foreign sales, expressed in dlrs, increased 11.4 pct from the year earlier period. If foreign exchange rates were constant, foreign sales would have decreased 1.0 pct and total sales 0.4 pct, the company said. "As anticipated, March sales were lackluster in our seasonally sensitive businesses due to Easter's being three weeks later this year than last," the company said in a statement. Reuter 

REXHAM CORP <RXH> 1ST QTR NET

Shr 70 cts vs 42 cts Net 2,918,000 vs 1,746,000 Sales 68.3 mln vs 53.5 mln NOTE: 1987 net includes pretax gain 400,000 dlrs from change in pension accounting. 1987 results include Production Graphics Corp and Systems Technology and Weapons System Test Divisions of NEw Technology Inc, acquired December 30, 1986. Reuter 

FIRST EASTERN CORP <FEBC> 1ST QTR NET

Shr 50 cts vs 47 cts Net 3,445,000 vs 3,193,000 NOTE: Share adjusted for two-for-one stock split in January 1987. Reuter 

FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES

The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-174 days 5.00 pct 5.00 pct 30-87 days 175-190 days 5.85 pct 5.82 pct 88-103 days 191-270 days 5.00 pct 5.00 pct 104-179 days 271-288 days 5.92 pct 5.85 pct 180-205 days 289-360 days 5.00 pct 5.00 pct 206-360 days Reuter 

ANCHOR FINANCIAL <AFCX> TO MAKE ACQUISITION

Anchor Financial Corp said it has agreed to acquire Waccamaw State Bank of Surfside Beach, S.C., in an exchange of 1.435 Anchor shares for each Waccamaw share, subject to regulatory and shareholder approvals. Waccamaw had assets of 22.8 mln dlrs as of March 31. Reuter 

STOLTENBERG NOT SURPRISED BY DOLLAR REACTION

West German Finance Minister Gerhard Stoltenberg said he was not surprised by the overnight decline of the dollar in foreign exchange markets. Speaking briefly with reporters before entering a meeting of the International Monetary Fund he said, "These minor movements don't really affect us." The dollar declined in the initial reaction to a statement by the Group of Seven industrial countries reaffirming their Paris agreement in February to maintain their currencies around current levels. Reuter 

ASARCO UPS U.S. LEAD PRICE 0.50 CT TO 26.50 CTS

Asarco Inc said it is increasing its base spot sales price for refined lead by one-half cent to 26.50 cents a lb, FOB, delivered in carload lots, effective immediately. Reuter 

FRANCE PLANS TO COVER SOCIAL SECURITY DEFICIT

French government ministers will meet next Tuesday to discuss measures to cover the state Social Security Fund's deficit before the summer, Prime Minister Jacques Chirac's social affairs adviser, Marie-Helene Berard, said. Employment Ministry officials say the fund, in surplus until 1985, faces a 24 billion franc deficit by the end of this year, largely because of rising unemployment. Budget Minister Alain Juppe said the fund needed more resources and a management overhaul. The government was not in favour of introducing an additional tax to fund the deficit as did the previous socialist administration between 1982 and 1985, he said. REUTER 

E.F. HUTTON <EFH> UNIT'S PUROLATOR OFFER EXPIRES

E.F. Hutton LBO Inc said the tender offer by its wholly owned unit, PC Acquisition Inc, for Purolator Courier Corp <PCC> expired at 2400 EDT yesterday without the purchase of any Purolator common stock. Hutton added that PC Acquisition also terminated its merger agreement with Purolator. Hutton said the offer, which had been conditioned upon the tender of at least 5,116,892 Purolator shares, or about two-thirds of the outstanding shares, was terminated because the minimum number of shares was not tendered. Purolator had entered into a definitive agreement with PC Acquisition, part-owned by E.F. Hutton LBO Inc, a unit of E.F. Hutton, and some officers of Purolator's U.S. courier division, in which PC offered to purchase 6,332,471 Purolator common stock shares for 35 dlrs a share. Following that move, PC Acquisition planned to merge a subsidiary into Purolator, converting all outstanding Purolator common it did not own into an aggregate 46 mln dlrs principal amount of 12 pct guaranteed debentures due 2002 and warrants to purchase 15 pct of a Purolator unit comprised of Purolator's U.S courier operations. Hutton said as of 2400 EDT yesterday about 181,000 shares of Purolator common stock, or about 2.4 pct of the outstanding shares, had been validly tendered and not withdrawn. PC Acquisition has instructed its depository for the offer to return promptly the Purolator stock deposited by, or on behalf of, tendering shareholders, Hutton said. Reuter 

ABBOTT LABORATORIES 1ST QTR NET SHR 62 CTS VS 52 CTS

INDIA FOODGRAIN TARGET 160 MLN TONNES IN 1987/88

India's national foodgrain target has been fixed at 160 mln tonnes in 1987/88 (Apr-Mar), unchanged from the 1986/87 target, the Agriculture Ministry said in its annual report for 1986/87. Actual output was estimated at 151 mln tonnes in 1986/87 due to failure of monsoon rains in 15 out of 35 meterological sub-divisions of the country. The report gave the targets for various crops with estimated harvested crops in 1986/87 in brackets as following, in mln tonnes - rice 65 (60), wheat 49 (49), coarse grains including sorghum and millets 32 (29) and pulses 14 (13). Despite failure of monsoon rains in recent years, it was possible to maintain higher foodgrain production, signifying growing resilience in agricultural sector, the report said. The strategy for increasing irrigation potential along with greater use of high yielding seed varieites and improvement in fertiliser efficiency is yielding results, it said, adding total foodgrain output in 1985/86, 1984/85 and 1983/84 respectively was 150.5 mln tonnes, 145.5 mln and a record 152.4 mln. India has targeted to produce between 178 and 183 mln tonnes of foodgrains by the last year of the seventh five-year development plan ending March 31, 1990. Taking the midpoint of 180 mln tonnes as the target and the 1986/87 estimated production of around 151 mln tonnes, the gap of 29 mln tonnes has to be made up during the remaining three years of the plan by increasing grain output annually by more than nine mln tonnes. But the target can be achieved only with good weather, the report said. "The major thrust programme will, therefore, be better water (irrigation) management. Simultaneously, efforts for spread of improved technology including timely use of inputs (farm materials like fertilisers) in adequate quantities have to be vigrously pursued," it said. Reuter 

CERTIFICATED COTTON STOCKS

Certificated cotton stocks deliverable on the New York Cotton Exchange No 2 cotton futures contract as of April 8 were reported at 34,661 bales, down 421 bales from the previous day's figure. There were no bales awaiting review and 1,218 bales awaiting decertification. Reuter 

REICHHOLD CHEMICAL <RCI> SETS ANTI-TAKEOVER PLAN

Reichhold Chemical Inc said its board adopted a warrant dividend plan in which one preferred stock purchase right will be distributed as a dividend on each common share outstanding. The company said its warrant dividend plan is designed to protect its shareholders against unsolicted, coercive attempts to aquire control without making an adequate offer for all shares. Reichhold said the adoption is not a response to any specific takeover attempt. Reichhold said each right will entitle shareholders to buy one one-hundreth of a share of a newly created series of preferred stock at an initial exercise price of 120 dlrs, with dividend and voting rights approximately equal to those of one share of the company's common stock. The rights will be exercisable only if, without Reichhold's prior consent, a person or group a acquires 20 pct or more of the voting power or announces a tender offer which would result in 20 pct ownership, the company said. Reichhold said it is entitled to redeem the rights at five cts apiece before a 20 pct position has been acquired, or before an existing 20 pct shareholder buys an additional two pct or more of the voting power of the company, or in connection with certain transactions afterward. The tax-free distribution will become effective May 1, 1987, and will expire 10 years later, the company said. Details of the plan are outlined in a letter to be mailed to stockholders. Reuter 

ABBOTT LABORATORIES INC <ABT> 1ST QTR NET

Shr 62 cts vs 52 cts Net 142.0 mln vs 123.0 mln Sales 1.00 billion vs 865.0 mln Reuter 

HANSON <HAN> TO BUY INT'L PROTEIN <PRO> STOCK

International Proteins Corp said it has agreed to sell in a private placement 330,000 common shares at 11.75 dlrs a share to a U.S. subsidiary of Hanson Trust Plc. In addition, David Clarke the president of another Hanson Trust subsidiary, Hanson Industries, will be named chairman of International Proteins's executive committee upon his election to the board at the annual meeting. International Proteins recently acquired Clarke's family business, Great South Beach Sales Co, for 900,000 restricted common shares of which 350,000 have been issued to date. International Proteins said its agreement with Hanson Trust is subject to stockholder approval at the annual meeting which is expected to be held in June. The company said Hanson Trust is purchasing the stock for investment purposes, adding the agreement includes restrictions on purchase or sale of the company by Hanson for the next five years. International Proteins said it will use the proceeds to expand domestic operations. The company has about 2.1 mln shares outstanding. Reuter 

EGYPT BUYS PL 480 WHEAT FLOUR - U.S. TRADERS

Egypt bought 125,723 tonnes of U.S. wheat flour in its PL 480 tender yesterday, trade sources said. The purchase included 51,880 tonnes for May shipment and 73,843 tonnes for June shipment. Price details were not available. Reuter 

SPAIN HAS 35 MLN DLR CURRENT SURPLUS FEBRUARY

Spain had a 35 mln dlr current account surplus in February compared with a 68 mln dlr surplus in January and a 355 mln dlr surplus in February last year, Bank of Spain figures show. Spain's trade deficit narrowed to 581 mln dlrs compared with 664 mln dlrs in January but the large increase in non-oil imports contributed to the substantial increase over the 159 mln dlr deficit registered in February 1986. Exports at 2.58 billion dlrs were up 19 pct compared with February last year, but imports were 46 pct higher than last February, totalling 3.16 billion dlrs. Non-oil imports totalled 2.79 billion dlrs compared with 1.91 billion in February last year, reflecting the large ammount of investment goods entering the country with the recovery of the Spanish economy, the Bank of Spain said. Spain's tourism earnings continued to grow and totalled 655 mln dlrs in February, compared with 103 mln dlrs in January and 502 mln dlrs in February last year. REUTER 

INDIA OILSEED OUTPUT FORECAST TO RISE

India's oilseed output is expected to rise to 12.25 mln tonnes in 1986/87 ending October, up on 11.15 mln in 1985/86 but down from 12.95 mln harvested in 1984/85, the Agriculture Ministry's 1986/87 report said. But the forecast for 1986/87 is well below a target of 14.8 mln tonnes fixed for the year, it said, adding bad weather hit groundnut and other oilseed crops. The National Oilseeds Development Program will invest 300 mln rupees in 1986/87 on supplying improved high-yielding seeds and other support services to help boost production, it added. India imports about 1.2 mln tonnes of edible oils a year. Reuter 

EXXON <XON> SOUTH AFRICAN UNIT ACQUIRED BY ZENEX

<Zenex Oil Pty Ltd> said it acquired the interests of Esso South Africa, the local subsidiary of Exxon Corp <XON), and will use up to 20 mln rand in profits to finance educational and social programs. The profit scheme will begin after Zenex has paid Exxon an undisclosed purchase price for Esso, Zenex chairman John Truscott said in a statement. The acquisition follows the Exxon withdrawal from South Africa announced last December. Reuter 

UK, FRANCE TO URGE DEBT RELIEF FOR POOREST LANDS

Britain, France and other European nations will make a strong plea in high-level meetings today for urgent debt relief for the very poorest countries, European monetary sources said. The request will be put to the International Monetary Fund's policy-making Interim Committee, which meets here as part of semi-annual IMF and World Bank talks. But it is likely to run into opposition from the United States, which regards debt relief, even for the world's poorest nations in Sub-Saharan Africa, with distaste. "If all creditors agreed, (Britain and France) would be prepared to consider below market interest rates " for the countries, one source said. A senior U.S. Treasury official poured cold water on the plan earlier this week, however. "We are not willing to enter into arrangements that would forgive debt or provide concessional interest rates," the official said. At the heart of the American objection is the fear that once such a concession is made for the very poorest nations, then sooner or later Latin debtors will be demanding similar relief. African nations owe foreign creditors, most of them governments, over 70 billion dlrs. Over 21 billion dlrs is debt owed by poorest Sub-Saharan African nations. In addition to interest rate concessions, the sources said European countries wanted repayment of these loans to be stretched out for up to 20 years, with a substantial delay before capital repayments start. The issue was inconclusively discussed in yesterday's meetings of the major industrial nations -- the United States, Japan, West Germany, Britain, France, Italy and Canada. It is already under consideration by the Paris Club of western creditor nations, to which the United States belongs. "There are quite obviously differences about it," one source said of the American attitude. "But it is perfectly clear that (debt repayment) is an abiding problem for a small number of the poorest countries." The plan would also involve the conversion of bilateral aid to these countries into outright grants, a policy already adopted by Paris and London. REUTER^M 

COMMONWEALTH EDISON <CWE> FILES DEBT OFFER

Commonwealth Edison Co filed with the Securities and Exchange Commission for the sale of 375 mln dlrs in first mortgage bonds. It said the proceedings would be used to discharge or refund outstanding obligations. No underwriter was named. Reuter 

SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES

The Student Loan Marketing Association said its rates on short-term discount notes were as follows: MATURITY NEW RATE OLD RATE MATURITY 5-14 days 5.80 pct 5.75 pct 5-14 days 15-360 days 5.00 pct 5.00 pct 15-85 days 5.80 pct 86-91 days 5.00 pct 92-176 days 5.83 pct 177-183 days 5.00 pct 184-360 days Reuter 

FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES

The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY RATE OLD RATE MATURITY 33 days 6.00 pct 6.00 pct 33 days Reuter 

ARGENTINE GRAIN BELT WEATHER REPORT

ARGENTINE GRAIN BELT TEMPERATURES (CENTIGRADE) AND RAIN (MM) IN THE 24 HOURS TO 12.00 GMT WERE: ...............MAX TEMP..MIN TEMP..RAINFALL BUENOS AIRES.......24.......12............0 BAHIA BLANCA.......22........7............0 TRES ARROYOS.......22........8............0 TANDIL.............22........7............0 JUNIN..............24.......11............0 SANTA ROSA.........--........6............0 CORDOBA............23.......12............1 SANTA FE...........21.......18...........17 REUTER 

VW SAYS 480 MLN MARKS MAXIMUM FOR CURRENCY LOSSES

Losses for Volkswagen AG <VOWG.F>, VW, linked to an alleged foreign currency fraud will not exceed the 480 mln marks provision already made, a VW spokesman said. The spokesman was commenting after VW had confirmed it would pay an unchanged 10 mark dividend for ordinary shares on 1986 business, despite the provision. One West German newspaper today quoted foreign currency dealers in Frankfurt as speculating that the total losses from the currency affair could be as high as 1.5 billion marks, but the VW spokesman described 480 mln marks as an "upper limit." VW said in a statement following today's supervisory board meeting that it had discussed the foreign currency scandal in detail, and was setting up a new probe into its foreign currency activities to be carried out by an unnamed auditing company. VW has said computer programs were erased and documents were faked in the alleged fraud in which it believes transactions intended to protect it against possible foreign currency losses were not completed. VW's former foreign currency chief Burkhard Junger was arrested on Monday on suspicion of embezzlement and of having evaded justice. Earlier VW had said that its 1986 results would match 1985 profits. VW's group net profit in 1985 was 596 mln marks and parent company net was 477 mln marks. It also said it recommend an unchanged dividend to the supervisory board. The company has also set a dividend of 11 marks for new preference shares, which were issued last year. Analysts have described the held dividend as a move to reassure worried shareholders. VW increased nominal capital by 300 marks last year to 1.5 billion marks, with the result that its total dividend payment on 1986 will be 306 mln marks compared with 240 mln on 1985, since the new capital was in preference shares. The share analysts say VW will have to dig into reserves in order to maintain the disclosed 1986 profit at 1985 levels. At the end of 1985, VW had parent company reserves of slightly less than three billion marks. REUTER 

YUGOSLAVIA TO TENDER FOR 100,000 TONNES WHEAT

Yugoslavia will tender April 14 for 100,000 tonnes of wheat, the U.S. Agriculture Department's Counselor in Belgrade said in a field report. The report, dated April 7, said the wheat must be from 1986 and 1987 harvest, and imports of soft wheat from Europe and from other suppliers will not be considered. It said the imports will be used to rebuild the federal reserves and as a result will not be subject to import surcharges. Reuter 

FEDERATED DEPARTMENT STORES MARCH SALES UP 4.9 PCT

PRICES GENERALLY LOWER AT NAIROBI COFFEE AUCTION

Prices were lower at this week's coffee auction for all grades and qualities except better quality AB grades, which held steady, the Coffee Board of Kenya said. The board said it offered 35,000 bags and sold 32,876. So far this coffee year, Kenya has sold 918,707 bags to all markets, of which 326,182 are for the 1986/7 pool, with an overall average price of 41,500 shillings a tonne, it added. The board will offer 35,000 bags at its next auction on April 14. BAGS PRICE PER 50 KG OFFERED SOLD AVERAGE PB 430 430 2304.78 (2267.21) AA 7289 6834 2292.92 (2358.96) AB 12664 11895 2289.99 (2291.13) C 3198 2867 2073.15 (2107.64) T 876 876 1508.79 (1510.67) TT 1375 1375 2053.25 (2095.64) E 159 159 2250.19 (2252.18) MISC 9009 8440 1409.50 (1398.60) TOTAL 35000 32876 AVERAGE FOR SALE 2014.93 (1994.94) Reuter 

ALEX. BROWN <ABSB> SETS SPLIT, TO OFFER SHARES

Alex. Brown Inc said it has declared a three-for-two stock split, payable May 29, record May 22. The company also said it has filed to offer 912,000 common shares, including 162,000 to be sold by a shareholder, with company proceeds to be used for working capital and general corporate purposes. Its Alex. Brown and Sons Inc subsidiary is lead underwriter. The offering is expected to be made before the record date of the split, the company said. Reuter 

JAMESWAY <JMY> MARCH SALES UP 15 PCT

Jamesway Corp said sales for the five weeks ended April Four were up 15 pct to 54.1 mln dlrs from 47.1 mln dlrs a year before, with same-store sales up four pct. The company said sales for the first nine weeks of its fiscal year were up 14 pct to 85.8 mln dlrs from 75.1 mln dlrs a year before, with same-store sales up four pct. It noted that Easter sales will fall in April this year, instead of March as last year. Reuter 

FEDERATED DEPARTMENT STORES <FDS> MARCH SALES UP

Federated Department Stores Inc said sales for the five weeks ended April Four were up 4.9 pct to 934.9 mln dlrs from 891.6 mln dlrs a year before., The company said sales for the first two months of its fiscal year were up 6.8 pct to 1.65 billion dlrs from 1.55 billion dlrs a year before. Reuter 

ZAYRE <ZY> MARCH SALES UP 12.7 PCT

Zayre Corp said sales for the five weeks ended April Four were up 12.7 pct to 522.3 mln dlrs from 463.5 mln dlrs a year before. The company said sales for the first nine weeks of its fiscal year were up 17.4 pct to 849.3 mln dlrs from 723.7 mln dlrs a year before. Reuter 

AMR <AMR> UP ON SMITH BARNEY OPINION

AMR Corp, the parent of American Airlines, rose sharply in active trading after analyst Roland Moreno of Smith Barney upgraded his opinion of the stock to buy from accumulate and added it to the brokerage house's recommended list, traders said. AMR climbed 1-3/8 to 55-5/8. A spokeswoman for Smith Barney said the recommendation was made because the airline group looks cheap relative to the broad market and the analyst feels AMR is the best in the group. In a related action, Moreno downgraded his opinion of UAL Inc <UAL> to accumulate from buy and took it off the firm's recommended list, Smith Barney's spokeswoman said. The stock slipped 1/2 to 71-1/2 on volume of 1.3 mln shares. She said the Moreno's downgrade of UAL was because the "stock had risen to a level beyond what current fundamentals can support." The stock has risen more on merger speculation than on fundamentals, the opinion continued. In recent weeks, rumors UAL stock was being accumulated for a possible takeover bid shored up the stock, traders and analysts said. In addition, pilots of UAL's United Airlines unit proposed a buyout of the airline for 4.5 billion dlrs. The Smith Barney spokeswoman said the postive recommendation of AMR emphasizes the company's strong marketing ability, its good management and customer loyalty to the AMR name. She said the company has been the best financial performer of the airline group. The AMR recommendation includes earnings expectations of 4.35 dlrs a share in 1987 as compared to earnings of 4.63 dlrs a share last year, the spokeswoman said. In 1988, the company is expected to earn six dlrs a share. Traders said other airline stocks moved higher today primarily as a result of fare hikes announced Wednesday by Texas Air <TEX>, United Airlines and AMR. Delta <DAL> rose 1/2 to 56-7/8, NWA Inc <NWA> 3/8 to 66, and Pan Am <PN> 1/8 to 4-5/8. Reuter 

HIGHLAND SUPERSTORES INC <HIGH> 4TH QTR NET

Period ended Jan 31 Shr 38 cts vs 61 cts Net 7,012,000 vs 11,193,000 Revs 223.0 mln vs 200.3 mln Year Shr 1.11 dlrs vs 1.36 dlrs Net 20,214,000 vs 23,602,000 Revs 656.5 mln vs 520.5 mln Avg shrs 18,257,631 vs 17,376,480 Reuter 

LVI GROUP <LVI> TO MAKE ACQUISITION

LVI Group Inc said it has agreed in principle to purchase all outstanding shares of <Spectrum Holding Corp> for a proposed 13 mln dlrs in cash. LVI said an additional 10 mln dlrs in common stock and seven mln dlrs in notes will become payable if Spectrum has certain minimum future earnings. LVI, an interior construction firm, said the acquisition is subject to execution of a definitive agreement and completion of due diligence. LVI and Spectrum, an asbestos abatement concern, expect to close the deal in June, LVI said. Reuter 

MACGREGOR <MGS> UNIT FILES TO OFFER SHARES

MacGregor Sporting Goods Inc said its wholly-owned MacGregor Team Sports Inc subsidiary has filed for an initial public offering of two mln common shares at an expected price of 11 to 14 dlrs a share. The company said after the offering it would continue to own 8,800,000 shares or at least an 80 pct interest, since McGregor Team Sports has granted underwriters an option to buy another 200,000 shares to cover overallotments. E.F. Hutton Group Inc <EFH> is lead underwriter. The company said proceeds will be uysed to reduce debt. The company said MacGregor Team Sports consists of its Riddell Inc football helmet producing unit, its Sports Specialties Corp sport cap distributing unit and Equilink Licensing Corp, which licenses MacGregor trademarks. Reuter 

TEXAS AMERICAN <TAE> OMITS PREFERRED PAYOUT

Texas American Energy Corp said its board has decided to again omit the quarterly dividend on its 2.575 dlr cumulative convertible exchangeable preferred stock. The dividend would have been payable May One. The company last paid 64.3 cts a share on the issue in August 1986. Reuter 

VORNADO INC <VNO> 4TH QTR JAN 31 NET

Shr 1.64 dlrs vs 1.56 dlrs Net 4,583,000 vs 5,313,000 Revs 20.1 mln vs 19 mln Avg shrs 2.8 mln vs 3.4 mln Year Shr 5.06 dlrs vs 5.92 dlrs Net 16 mln vs 20.3 mln Revs 74.6 mln vs 68 mln Avg shrs 3.2 mln vs 3.4 mln Reuter 

BRENDA MINES SELLING KERR ADDISON SHARES

<Brenda Mines Ltd> said it sold 2,830,390 <Kerr Addison Mines Ltd> shares to a group of underwriters led by Wood Gundy Inc and Brown, Baldwin Nisker Ltd for redistribution. Financial terms were undisclosed. Reuter 

PHOENIX FINANCIAL <PHFC> BUYS DATA ACCESS STAKE

Data Access Systems Inc said chairman David Cohen has sold 1,800,000 common shares to Phoenix Financial corp for undisclosed terms and resigned as chairman and chief executive officer. The company said Phoenix Financial now has a 27 pct interest in Data Access and effective control. Data Access said Phoenix chairman Martin S. Ackerman has been named chairman of Data Access as well and two other Phoenix representatives have been named to the Data Access board. It said four directors other than Cohen have resigned from the board. Reuter 

HEALTH AND REHABILITATION <HRP> INITIAL PAYOUT

Health and Rehabilitation Properties Trust said it declared an intitial dividend of 55 cts per share for the period ending March 31, 1987 The dividend will be payed May 20 to shareholders of record on April 20, the company said. The company said it organized in late 1986 and closed its intitial public offering of shares Dec 23, 1986. The initital dividend includes five cts attributable to the period between Dec 23 and 31, 1986, and 50 cts attributable to the first qtr of 1987, ending March 31, 1987. Reuter 

T. ROWE PRICE <TROW> SEES HIGHER FIRST QUARTER

T. Rowe Price Associates said its first quarter earnings rose about 50 pct from the year-ago 2,634,000 dlrs and revenues about 30 pct from the year-ago 24.2 mln dlrs. It said it expects "very good" earnings and revenue growth this year. In 1986 it earned 14.8 mln dlrs on revenues of 111.1 mln dlrs. Reuter 

CRAY <CYR> GETS 6.6 MLN DLRS ORDER FROM BP <BP>

Cray Research Inc said British Petroleum ordered a CRAY X-MP/24 supercomputer valued at about 6.6 mln dlrs. The leased system will be installed at BP Exploration Co Ltd's London headquarters in the fourth quarter of 1987, pending export license approval, it said. The CRAY X-MP/24 will replace a CRAY X-MP/12 supercomputer in operation since 1985, it added. Separately, the company said that a CRAY X-MP/24 system valued at 8.5 mln dlrs was installed at Lockheed Missiles and Space Co. Reuter 

GENERAL PARTNERS CUTS STAKE IN GENCORP <GY>

General Partners told the Securities and Exchange Commission it has reduced its stake in GenCorp Inc to 8.6 pct, from 9.8 pct, by selling 250,000 shares at a price equal to 118.5 dlrs per share. General Partners, which includes GC Holdings Inc and General Acquisitions Inc, said yesterday it was dropping its 100-dlr-a-share hostile takeover bid for GenCorp because of GenCorp's move to buy back its shares for up to 130 dlrs each. Reuter