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U.K. MONEY MARKET SHORTAGE FORECAST AT 250 MLN STG

The Bank of England said it forecast a shortage of around 250 mln stg in the money market today. Among the factors affecting liquidity, it said bills maturing in official hands and the treasury bill take-up would drain around 1.02 billion stg while below target bankers' balances would take out a further 140 mln. Against this, a fall in the note circulation would add 345 mln stg and the net effect of exchequer transactions would be an inflow of some 545 mln stg, the Bank added. REUTER 

BANK OF FRANCE SETS MONEY MARKET TENDER

The Bank of France said it invited offers of first category paper today for a money market intervention tender. Money market dealers said conditions seemed right for the Bank to cut its intervention rate at the tender by a quarter percentage point to 7-3/4 pct from eight, reflecting an easing in call money rate last week, and the French franc's steadiness on foreign exchange markets since the February 22 currency stabilisation accord here by the Group of Five and Canada. Intervention rate was last raised to eight pct from 7-1/4 on January 2. Call money today was quoted at 7-11/16 7-3/4 pct. REUTER 

AMOCO REPORTS SOUTH CHINA SEA OIL FIND

The U.S. <Amoco Petroleum Corp> has reported an offshore oil find at its Pearl River basin concession in the South China Sea, the New China News Agency said. It said the Liu Hua 11-1-1 A well produced at around 2,240 barrels per day at a depth of 305 metres. The news agency said Amoco plans to drill a second well in the area this year, but gave no further details. REUTER 

SOUTH KOREA DELAYS CONTRACT FOR NUCLEAR PLANTS

Technology transfer problems have delayed the finalising of contracts between South Korea's state-owned Korea Electric Power Corp (Kepco) and U.S. Firms for supplies of equipment and services for Kepco's latest two 950-megawatt nuclear power plants, a Kepco spokesman said. He told Reuters the contracts for Kepco's tenth and eleventh stations, costing between two and three billion dlrs, were due for completion by the end of February. Kepco has been negotiating with Combustion Engineering Inc (CSP) for pressurised light-water reactors and General Electric Co (GE) for turbines. KEPCO has also been negotiating with (Sargent and Lundy Engineers) for engineering and design consultancy services. "We have been waging a tug-of-war on the transfer of advanced technology. But I am optimistic we will sign contracts with them within this month," the spokesman said. He said the transfer of advanced technology is vital for South Korea, which wants to build future nuclear power plants with its own technology. Work on the two plants is due to start about June 1988 for completion in 1995 and 1996, although the sites have yet to be chosen, he said. REUTER 

KEIAISHA ISSUING 12 MLN SWISS FRANC NOTES

Keiaisha Co Ltd of Tokyo is issuing 12 mln Swiss francs of straight notes due March 26, 1992 with a 4-5/8 pct coupon, lead manager Gotthard Bank said. The notes can be called from September 26, 1989 at 101-1/4, declining semi-annually. The issue is guaranteed by the Kyowa Bank Ltd. REUTER 

NATIONAL WESTMINSTER BANK SAYS IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.

NATIONAL WESTMINSTER BANK CUTS BASE RATE

National Westminster Bank Plc said it has cut its base lending rate 0.5 percentage points to 10.5 pct today. National Westminster said that it was responding to general easing in money market rates. Its move followed a signal from the Bank of England earlier this afternoon that it would endorse a half point cut in the base rate, a surprise move following its strong signals last week that such a move would be premature. However, since then the pound has continued to gain strongly. REUTER 

U.S. FACILITIES <USRE> SEMI-ANNUAL DIVIDEND

Semi-annual dividend 4 cts Pay May 29 Record April 14 Note: full name is U.S. Facilities Corp. This is first dividend declared since company completed its initial public offering on November 7. Reuter 

STANDARD PACIFIC <SPF> ACQUIRES SOUTH BAY S/L

Standard Pacific LP said it has acquired substantially all of the assets and liabilities of South Bay Savings and Loan Association of Newport Beach. The firm said over the weekend that it will conduct its savings and loan activities through Standard Pacific Savings FA, a Federal stock association. On Friday, the Federal Home Loan Bank Board in Washington said it approved the acquisition of South Bay S and L, a 62.5 mln dlr state-chartered stock association, by Standard Pacific, which has 312.8 mln dlrs in assets. The Bank Board said that the Federal Savings and Loan Insurance Corp will make a cash contribution, provide capital loss coverage and indemnify Standard Pacific against undisclosed liabilities. Reuter 

U.S. TO ALLOW TEMPORARY IMPORTS OF S.A. URANIUM

The Treasury Department said it would temporarily permit imports of South African uranium ore and oxide pending clarification of anti-apartheid sanctions laws passed by Congress last fall. The decision was announced late Friday. It applies, until July 1, to uranium ore and oxide imported into the U.S. for processing and re-export to third countries. The Treasury said it took the action because it felt that when Congress passed the comprehensive South African sanctions bill last fall over President Reagan's veto it had not intended to hurt U.S. industry. In addition, the Treasury said it would permit U.S.-made goods to be imported temporarily from South African state-controlled organizations for repair or servicing. Reuter 

PAPER SAYS INDICTMENTS IN IRAN CASE EXPECTED

The special prosecutor in the Iran arms scandal is expected to bring indictments that could include felony charges against senior Reagan administration officials, the New York Times reported. It quoted law enforcement officials with knowledge of the investigation as saying special prosecutor Lawrence Walsh, who is investigating the scandal, was focusing on three areas. The paper identified these as conspiracy to defraud the government, obstructing justice and making false statements to the government. It said the prosecutor had not ruled out any suspects, including current and former government officials. MORE 

NYSE RULE COULD AFFECT TRADING IN LONDON

An existing New York Stock Exchange, NYSE, rule might be used to limit the trading activities of its members in London in stocks listed on both exchanges, sources at the London Exchange said. This could arise if the London Stock Exchange goes ahead with plans to close its trading floor. The London Exchange sources were commenting on press reports that the NYSE would bar its members firms from trading on the London Exchange in interlisted stocks during periods when the NYSE was open. The London exchange is seeking clarification. London Exchange sources said the possibility of restrictions on NYSE members appears to reflect a rule which requires that exchanges recognised by the NYSE possess a trading floor. Last month, the London Exchange said in a statement that it planned to close its floor in due course, apart from a floor for traded options, because almost all business is now being done by screen and telephone between brokerage offices. This development stemmed from the Big Bang restructuring of the market on October 27. The demise of the traditional Stock Exchange floor has been widely expected, though no date has been set as yet. Market sources said a compromise over the NYSE rule could well be reached, partly because the interests of U.S. Securities dealers are not all identical. Some of them could well start lobbying the NYSE, pointing out, among other things, that the expansion of global trading needs to be based on reciprocal arrangements. NYSE brokerage firms which also trade on the London Exchange would presumably be put at a disadvantage over non-NYSE U.S. Firms, which have affiliates on the London Exchange, market sources said. REUTER 

PIEDMONT <PIE> AGREES TO USAIR <U> BUYOUT

USAir Group Inc said Piedmont Aviation Inc has agreed to be acquired for 69 dlrs per share. The company, in a newspaper advertisement, said it has started a tender offer for all Piedmont shares at that price, and the Piedmont board, with two directors absent, has unanimously approved the bid. The offer and withdrawal rights are to expire April Three unless extended, and the bid is to be followed by a merger at the same price. USAir said Piedmont has granted it an irrevocable option to buy up to 3,491,030 new shares under certain circumstances. Piedmont now has about 18.6 mln shares outstanding. USAir said the tender is conditioned on receipt of enough shares to give USAir at least a 50.1 pct interest in Piedmont on a fully diluted basis and approval by the U.S. Department of Transportation of a voting trust agreement permitting USAir to buy and hold shares pending review of its application to gain control of Piedmont. The company said its merger agreement with Piedmont provides that the offer is not to be amended without Piedmont's prior written consent in any way that would be adverse to Piedmont shareholders, but it said it could cut the number of shares to be bought without Piedmont's consent. USAir said it could reduce the number of Piedmont shares to be purchased in the offer to no less than the minimum number needed to cause the voting trust condition of the bid to be satisfied. In that case, it said if more than that minimum number of shares were tendered, it would buy shares on a pro rata basis. In February USAir had offered to pay 71 dlrs per share in cash for 50 pct of Piedmont's stock and 1.55 to 1.90 USAir shares for each remaining Piedmont share. Last week, Carl C. Icahn-controlled Trans World Airlines Inc <TWA> made a conditional offer to acquire USAir for 52 dlrs per share, a bid that was rejected by the USAir board. The Transportation Department on Friday rejected TWA's application to acquire USAir on the grounds that the application failed to comply with department regulations by omitting necessary information. TWA said it would refile today, providing the information needed. On Friday TWA said it had already acquired four mln shares or 15 pct of USAir. Reuter 

U.S. AIDES SEE MOSCOW AGREEING TO ARMS CHECK PACT

Senior U.S. Arms control officials said they were optimistic the United States and Soviet Union could reach agreement on ways to verify a pact to eliminate medium-range nuclear missiles in Europe. Chief U.S. Arms control negotiator Max Kampelman said on the NBC television network a fair pact would be hard to negotiate, but, "We are determined to do it." Assistant Secretary of Defence for international security policy Richard Perle said he thought the two sides could agree on a method to ensure each side was honouring a missile pact. President Reagan said on Friday that Secretary of State George Shultz would go to Moscow next month for talks on arms control and a possible U.S.-Soviet summit meeting. The decision to send Shultz to Moscow followed an announcement by Soviet leader Mikhael Gorbachev that he was willing to separate elimination of medium-range missiles in Europe from his demand for curbs on U.S. Development of a Strategic Defence Initiative (SDI) anti-missile system. Kampelman said the United States and the Soviet Union both had a general definition of so-called "intrusive" or on-site inspection of a pact, but details would be tough to work out. Reuter 

API REPORTS SHARP FALL IN DRILLINGS

Estimated oil and gas drilling completions in the United States dropped by almost 41 per cent in 1986 from 1985, the American Petroleum Institute said. API, an industry group, said that of the 42,387 wells completed last year, a total of 19,741 were oil wells, 8,645 were natural gas wells and 14,001 were dry holes. In 1985, a total of 71,539 wells were drilled - 36,834 oil wells, 13,036 gas wells and 21,669 dry holes. reuter 

U.K. CREDIT BUSINESS FALLS IN JANUARY

New credit advanced by finance houses, retailers, bank credit cards and other specialist providers of credit slipped to 2.66 billion stg in January from 2.78 billion in December - but remained close to the average level for 1986's fourth quarter, the Department of Trade and Industry said. Of the January total, 1.15 billion stg was advanced on bank credit cards. On a three-month basis, total advances in November to January were 3.0 pct lower than in the previous three months. Within this total, lending to consumers fell by 6.0 pct and lending to businesses declined by 5.0 pct. At end-January 1987, the total amount outstanding was 24.07 billion stg, up from December's 23.77 billion stg and 3.0 pct above the total three months earlier, the department said. January saw a rise of 300 mln stg in amounts outstanding to finance houses, other specialist credit grantors and retailers. The department said advances on credit cards rose by 1.0 pct between the latest two three-month periods. Retailers advanced 3.0 pct less in the latest three months than in the previous three months, it said. REUTER 

BRAZILIAN SEAFARERS' STRIKE DAMAGES OIL EXPORTS

A strike by Brazil's 40,000 seafarers who want pay rises of up to 180 pct may have cost the state-owned oil company Petrobras 20 mln dlrs in lost export orders, the company's commercial director Arthur de Carvalho was quoted as saying in press reports. More than 170 ships in Brazil, and about nine more in foreign ports, have been halted by the strike, which began on February 27. Marines began blockading the ships on Friday after the strike was ruled illegal, and some strikers are running short of food, National Merchants Marine Union president Edson Areias said. Reuter 

NEC <NIPNY> UNIT INTRODUCES NEW COMPUTERS

NEC Corp's NEC Informational Systems Inc said it introduced three advanced personal computers that are fully compatible with the International Business Machines Corp <IBM> PC AT. The computers, the PowerMate 1, PowerMate 2 and BusinessMate, are based on a chip made by Intel Corp <INTC>. The PowerMate 1 and 2 are available immediately and sell for 1,995 dlrs and 2,595 dlrs, respectively, the company said. The BusinessMate, scheduled for April availability, will sell for less than 6,000 dlrs, it said. Reuter 

OECD TRADE, GROWTH SEEN SLOWING IN 1987

The 24 nations of the Organisation for Economic Cooperation and Development (OECD), hampered by sluggish industrial output and trade, face slower economic growth, and their joint balance of payments will swing into deficit in 1987, the Economist Intelligence Unit (EIU ) said. The EIU said in its World Trade Forecast it revised OECD economic growth downwards to 2.5 pct this year, compared with a 2.8 pct growth forecast in December. It said the new areas of weakness are West Germany and the smaller European countries it influences, and Japan, hardest hit by currency appreciation this year. The independent research organisation cut its 1987 growth rate forecasts for West Germany to 2.2 pct from 3.2 pct in December and to 2.3 pct from three pct for Japan. It said it expected the OECD to post a current account deficit of some 13 billion dlrs in both 1987 and 1988, due in large part to a 1.50 dlrs a barrel rise in 1987 oil prices. It said the U.S. Current account deficit looked likely to fall even more slowly than forecast, to 125 billion dlrs in 1987 and 115 billion in 1988 from 130 billion in 1986. It said it expected West Germany to post a 31 billion dlr payments surplus and Japan a 76 billion dlr surplus this year. The EIU said it saw oil prices dropping to around 16.50 dlrs a barrel by end-1987 and 15.50 dlrs in 1988 from about 18 dlrs last year, as adherence to OPEC output policy becomes increasingly ragged. It said the dollar is poised to resume its decline in foreign exchange markets, and will lose a further 13 pct on its trade-weighted index this year and five pct in 1988 after last year's 18.4 pct drop. The average mark/dollar rate is put at 1.80 marks this year and 1.70 in 1988 while the yen/dollar rate is expected to break through the 150 yen barrier with an average value of 150 yen in 1987 and 146 yen in 1988, it said. "This is not a crash scenario but the dollar's steeper angle of descent increases the risk of ending with a fireball rather than a three-point landing," the EIU said. "Talking will not stop the dollar's slide for long and the February meeting (of finance ministers of the Group of Five and Canada) produced scant promise of either a decisive shift to more expansive policies in West Germany and Japan, or a tighter U.S. Fsical policy," it said. It said the key to the dollar's fortunes was the willingness of Japanese institutions to buy U.S. Government assets despite prospects of sustaining a currency loss. "Thus far they have been willing," the EIC said, adding that if Japan was deterred from buying U.S. bonds the dollar would collapse. To contain such a currency crisis, dollar interest rates would have to soar, bringing recession and a Third World debt crisis, it said. On trade, the EIU said prospects for 1987 look "increasingly sick." Import growth, forecast in December at 4.5 pct, is now seen slowing down to around 3.8 pct in 1987 with a recovery only to 4.2 pct in 1988, it said. The weakness of the West German economy is the biggest single factor, with import growth there expected to feature a sluggish 3.5 pct growth in 1987 against the 6.5 pct forecast in December, the EIU said. On the export side, it said it saw weak demand in West Germany affecting export prospects elsewhere in Europe, while Japan's exports in 1987 would remain flat and sales by U.S. Exporters would respond only marginally to a lower, more competitively-priced dollar. It said in most of Europe and in Japan, raw materials and oil will cost less in domestic currency in 1987 than in 1986. Reuter 

POEHL SAYS FURTHER RATE CUT POSSIBLE - SOURCES

Bundesbank president Karl Otto Poehl told a closed investment symposium that West Germany could cut leading interest rates again if the United States makes a similar move, banking sources said. The sources were reporting Poehl's remarks at a symposium in Duesseldorf last week organised by Deutsche Bank Ag. Press representatives were not invited. The sources, speaking separately, said Poehl told about 200 bankers in reply to questions that a cut in U.S. Interest rates would give room for a matching measure in Germany. "It was a definite hint at lower German interest rates," said one banker who attended the symposium. A Bundesbank spokesman said the central bank would have no comment on the reported remarks, made at the private meeting. But, according to a second source, who also declined to be identified, Poehl's comments were seen by bankers present as a direct pointer to further moves by the central bank to defend German industry from an additional revaluation of the mark. "He said if the Americans drop their interest rates then the Bundesbank would also drop them. He said that quite clearly," the second source said. In reply to questions, Poehl also said the half-point cut in the discount and Lombard rates on January 22 came after the U.S. Had signalled it would be prepared to attend a meeting to discuss the level of the dollar on condition Germany made such a move in advance, the sources said. Asked if American authorities could have been persuaded, by cuts in German rates, to come to the bargaining table as early as last September, one of the sources quoted Poehl as saying, "No, they wouldn't have been. We checked that." The Paris meeting of the Group of Six industrial nations took place exactly one month after the German cut in rates. Poehl emphasised in his comments the very close talks between central banks before and after the G-6 meeting, saying that financial markets had not fully realised the significance of the Paris session and the U.S. Agreement to stem further falls in the value of the dollar, the sources said. For the first time all participants at the summit agreed that a further fall in the dollar would be harmful for all world economies, including the U.S., Poehl had said. The sources said the tone of Poehl's comments boosted growing sentiment that the dollar would be stabilised around current levels by international central bank cooperation. One source said Poehl's remarks also underlined the fact that the Bundesbank was now more prepared to be accommodative in monetary policy in order to prevent a further slowdown in West Germany's economic growth. Poehl and other Bundesbank officials have in the past stressed that the German central bank had no direct responsibility for growth and was solely concerned with combatting inflation. This led, for instance, to the introduction of a tighter monetary stance from the beginning of December until the half-point cut in rates in late January. The sources quoted Poehl as saying that the current overshooting of the German monetary target would not directly respark inflation. The Bundesbank was not obliged to react immediately whenever such overshooting occurs. Latest data for central bank money stock, the Bundesbank's main measure of money supply, showed the measure was growing at 7-1/2 pct in January, outside its three to six pct 1987 target. Share prices rose in very active trading today, with dealers reporting that Poehl's remarks, coupled with a bullish outlook on stock prices from Deutsche at the same symposium, brought in strong bargain hunting at current low levels. REUTER 

PLESSEY TO SELL TELEPHONE SYSTEM TO COLOMBIA

Plessey Co Plc <PLY.L> said it had won a multi-million stg contract to supply Colombia with the System X digital telephone exchange, the first major export contract for the system. Company sources said the deal was worth about 15 mln stg. v A Plessey statement said the contract, awarded by the National Telecommunications Authority of Colombia, was won against competition from Telefon L M Ericsson AB, NEC Corp, Fujitsu Ltd and Italtel of Italy. "The award is regarded as a triumph for System X and a breakthrough in the South American market," it said. Plessey said the contract was one of the largest awarded by Telecom Colombia for the past 10 years and involved supplying 13 telephone exchanges including 68,000 lines. The award also includes transmission equipment for the interconnection of the exchanges and the existing system. The firm was actively marketing System X worldwide and contract negotiations in certain countries had reached an advanced stage, it said. Plessey shares were down 5p at 235p, having gone ex-dividend. REUTER 

VENEZUELA REVEALS DEBT PAYMENT SCHEDULE DETAILS

The 20.3 billion dlr debt rescheduling accord Venezuela signed a week ago will reduce its payments over the next three years by 64 pct, according to Finance Ministry figures released this weekend. A ministry statistical analysis said while the original accord called for payments of 3.82 billion dlrs between 1987 and 1989, the new agreement requires debt servicing of 1.35 billion over the same period. In 1987, Venezuela will be required to pay 250 mln dlrs instead of the 1.55 billion originally agreed. Payments in 1988 were cut to 400 mln from 1.20 billion, and in 1989 to 700 mln from 1.11 billion. The ministry's analysis said the reduction in debt servicing during 1987-1989 amounts to an effective grace period, something the Venezuelan negotiators sought from creditor banks but were not granted. Most of the rescheduling falls during 1994-1998, when 53.3 pct, or some 11.25 billion dlrs, must be paid. Under the February 27 accord, Venezuela will repay 20.3 billion dlrs of public sector debt over 14 years at 7/8 of a percentage point over London interbank offered rates (Libor). This compares with the February 1986 accord which called for a 12-year term and interest of 1-1/8 point over Libor. REUTER 

SOSNOFF STARTS BID FOR CAESARS WORLD <CAW>

<MTS Acquisition Corp>, a company formed by Martin T. Sosnoff, said it has started a tender offer for all shares of Caesars World Inc at 28 dlrs each. In a newspaper advertisement, MTS said the offer and withdrawal rights expire April Three unless extended. Sosnoff, a New York investor, already owns about four mln of Caesars' 30.3 mln shares outstanding, or about 13.3 pct, and is Caesars' largest shareholder. Caesars owns casino hotels in Nevada and honeymoon resorts in Pennsylvania's Pocono Mountains. It also controls Caesars New Jersey Inc <CJN>, which owns an Atlantic City, N.J., casino hotel. For the second quarter ended January 31, Caesars World earned 12.6 mln dlrs on revenues of 190.4 mln dlrs, up from earnings of 7,500,000 dlrs and revenues of 163.8 mln dlrs a year before. For all of fiscal 1986, the company earned 41.0 mln dlrs on revenues of 694.4 mln dlrs. MTS said the offer is conditioned on receipt of at least enough shares to give Sosnoff a majority interest on a fully diluted basis, the arrangement of sufficient financing to buy all Caesars shares not already owned and pay related costs and approval by the New Jersey Casino control Commission and the NEvada Gaming Commission and State Gaming Control Board. MTS said Marine Midland Banks Inc <MM> has committed to lend it 100 mln dlrs for the acquisition and use its best efforts to syndicate another 400 mln dlrs in senior financing for the transaction. It said its financial adviser, PaineWebber Group Inc <PWJ>, has stated in writing that subject to market conditions, it is highly confident that it can arrange commitments for up to 475 mln dlrs in "mezzanine" financing. MTS said it does not expect problems in obtaining New Jersey and Nevada regulatory approval for the acquisition, since ownership in a Caesars stake has already been cleared. In June 1986, Sosnoff requested a seat on the Caesars World board, a request that has not yet been granted. In September 1986, Sosnoff, who is chairman of <Atalanta/Sosnoff Capital Corp>, filed for clearance under U.S. antitrust laws to raise his interest in Caesars World to 25 pct. Sosnoff said, in a letter to Caesars World chairman and chief executive officer Henry Gluck, that "The decision to go directly to the shareholders was made at the urging of may financial and legal advisors, who repeatedly stressed to me the lack of responsiveness of the management in the past." Sosnoff, who said he has made numerous efforts to express his views to management on ways of maximizing shareholder values, said Caesars twicce refused his request for a board seat. "My advisers felt that, had I given you advance notice, you would have used the time to throw up obstacles to my offer rather than giving it serious consideration," he said. Sosnoff said he hopes that Caesars World management will be willing to negotiate an acquisition agreement with him. "As I have indicated publicly in the past, I believe operating management of the company has performed well and that appropriate consideration should be given to a significant equity interest for them in the company following the acquisition," Sosnoff said in the letter to Gluck. MTS said Sosnoff has asked the company to fix March 27 as the record date for the determination of shareholders entitled to authorize action without a meeting -- including the election or removal of directors. Reuter 

DUTCH PLANNING AGENCY FORECASTS LOWER GROWTH

Dutch economic growth is slowing as a firming guilder cuts competitiveness abroad and industries reduce the pace of investment, the Dutch official planning agency CPB said. The Centraal Planbureau, publishing its 1987 economic outlook, said Dutch Net National Income (NNI) was expected to grow by one pct this year, down from two pct growth recorded in 1986 and 2.5 pct in 1985 and 1984. Dutch Gross National Product is expected to rise to 432.20 billion guilders in 1987 in constant prices, a two pct increase from last year's 423.95 billion. The CPB, forecasting an 8.5 pct increase in the value of the guilder on a trade-weighted basis compared with 10.0 pct last year, said the dollar was expected to trade at an average of 2.0 guilders in 1987 compared with 2.45 guilders in 1986. "The higher guilder is causing a substantial fall in unit labour costs abroad, when measured in guilder terms, while these are rising slightly in the Netherlands," the CPB said. More of economic growth now depended on domestic consumption, the CPB said, but noting that higher margins set by domestic producers and importers mitigated the effect on purchasing power of lower import costs and deflation. Consumer prices were set to fall by 1.5 pct this year, the CPB said. Inflation was zero last year. Gross investment in industry was expected to grow by five pct this year, a slowdown compared with 11.5 pct growth last year, the CPB said. Exchange rate and oil price fluctuations will continue to condition the Dutch economy in the future as it has in recent years, the CPB said, noting a continued depressing impact of these factors on Dutch competitiveness. In addition, it noted a slight rise in taxation and social security costs to employers. The CPB, forecasting a rise in the budget deficit to 7.2 pct of Net National Income in 1987 from 6.3 pct last year, urged the government to cut expenditure further to bring down the deficit and reduce tax and social security payments in future. Dutch government revenue is being depressed further by falling income from natural gas sales in 1987, the CPB said. It said unemployment was expected to fall to 675,000 this year from 710,000 last year. While the two pct GDP growth forecast set by the CPB is within its latest forecast, issued last month, of 1.5 to two pct growth, the figure is well above recent market estimates. Dutch merchant bank Pierson, Heldring en Pierson said in its February economic outlook that GDP growth at constant prices was expected to be 1.1 pct this year and market analysts had expected the CPB's final forecast to be below its own latest estimate. "It is too early to comment because I haven't seen the whole document yet, but it would seem we are more pessimistic in some of our estimates," a Pierson economist said. The CPB forecast 2.5 pct export growth in volume terms in 1987, after four pct growth last year. Excluding energy exports, the 1987 figure would be two pct, it said. Imports were set to rise by 4.5 pct this year compared with four pct in 1986 in volume terms, the CPB said. The balance of payments would see a sharp decline in the surplus, to six billion guilders in 1987 compared with 12.1 billion last year, the CPB forecast. REUTER 

TRUMP MAKES BID FOR CONTROL OF RESORTS <RTB>

Casino owner and real estate developer Donald Trump has offered to acquire all Class B common shares of Resorts International Inc, a spokesman for Trump said. The estate of late Resorts chairman James M. Crosby owns 340,783 of the 752,297 Class B shares. Resorts also has about 6,432,000 Class A common shares outstanding. Each Class B share has 100 times the voting power of a Class A share, giving the Class B stock about 93 pct of Resorts' voting power. More 

IOMEGA <IOMG> SETS MANAGEMENT, LABOR LAYOFFS

Iomega Corp said it has laid off over a quarter of its professional and management staff and nearly half of its direct labor force as part of a restructuring and downsizing of its business. The company also said it will receive a qualified opinion from the auditors of it 1986 financial statement subject to the outcome of two suits. The company is a defendant in a consolidated class action law suit which seeks damages in an unspecified amount and is also a defendant in a related shareholder action. Iomega said the auditors state in their opinion letter that both actions are in the early stages of discovery and the likely outcome can not be determined at this time. The company said a corporate wide reduction of its professional, management and indirect labor will result in the permanent elimination of 183 positions in all functional areas of the company's business. This represents over 25 pct of professional, management and indirect employees, it added. In addition, Iomega announced layoff of about 182 employees, principally from its manufacturing direct labor force. Those affected represent about 46 pct of direct labor. Commenting on the layoffs, Iomega said those from among the direct labor force affects personnel building the Alpha Eight Inch Disk Drive and Bernoulli Boxes. "This action is required as we bring our finished goods inventory and inventory in our distribution channels down to acceptable levels," it explained. The company stated this layoff does not affect the production of its new 5-1/4 inch Beta 20 product which is currently being built to a backlog of orders. Reuter 

TECHNOLOGY/NEW ERA FOR INFORMATION HANDLING

Ground-breaking new systems for storing and retrieving information are ushering in a new era for computer companies and computer users. Within the past few weeks, International Business Machines Corp <IBM>, Eastman Kodak Co <EK> and others have launched products that radically increase the amount of data that can be catalogued and shelved in computerized libraries. "This flurry of new technology could yield systems that handle a multimedia blitz of data," said Ian Warhaftig, a senior analyst with International Data Corp, Framingham, Mass. "We're developing new systems because our customers are asking for them," Peter Giles, vice president and general manager of Kodak's mass memory division, said in a recent interview. This demand is expected to soar in coming years. While estimates vary, industry analysts project that providing products and services geared for information storage and retrieval could become a 20 billion dlr a year business by 1995. A wide range of technologies will be needed to meet the varying requirements of users. For example, a large credit verification service would want a system from which it could quickly retrieve credit data and relay it to its clients. A law firm, however, may need a computerized law library in which capacity, rather than speed, is the key feature. For architects and engineers, the ability to store photographs, sketches and other graphics would be crucial. Regardless of the specific application, the trend is toward converting information - documents, video or film or even sound recordings - into to the digital language of zeros and ones understood by computers. Saving space is the key goal in digitizing data for storage. An optical disk the size of a standard compact disk can store 550 megabytes of data, or about 250,000 pages of typewritten text. For this reason, the compact disk read-only memory, or CD-ROM, is already a popular data storage media. Last week, Microsoft introduced Microsoft Bookshelf, a 300 dlr program that contains, on a single CD-ROM disk, a dictionary, thesaurus, national ZIP code directory, Bartlett's Familiar Quotations, the World Almanac and other reference works. Scores of such products are already on the market, but most are specialty items, such as Lotus Development Corp's <LOTS> CD-ROM data base of stock information for financial analysts and investors. "Microsoft Bookshelf is important because it marks the arrival of CD-ROM packages for the general public," said Ian Warhaftig of International Data Corp. One drawback of the CD-ROM, which uses a laser to record and read data, is that that it requires a special player. CD-ROM players for the retail market will appear later this year. Moreover, IDC's Warhaftig said CD-ROM's will be integrated with personal computers. "Eventually, CD-ROM's will fit right inside the PC box," he said. "Imagine the advantage of having a spelling checker and thesaurus at your fingertips when you're writing with a word processing program." But CD-ROM's are just the beginning. Also last week, Kodak unveiled several systems that use 12-inch optical disks. The largest Kodak system uses a jukebox-like cabinet to hold up to 150 optical disks from which data can be retrieved in a matter of seconds. Kodak also announced a 14-inch optical disk with 6.8 gigabytes of memory, five times the memory of a CD-ROM. The Kodak disk, which will not be available until the middle of 1988, is designed for users who need quick access to very large amounts of data, said Kodak's Giles. Meanwhile, N.V. Philips <PGLO.AS>, the Dutch electronics giant, is preparing to take optical disk technology a step further with the first disk that can combine text, video and sound. Philips said the system, called Called CD-Interactive, will be ready next year. It will include a new kind of CD-ROM player that can hook up with a television set and stereo. Additional breakthroughs are expected as the next generation of computer memory chips are introduced. Last month IBM said it has made a four-megabyte chip, capable of storing more data than eight CD-ROM's. Meantime, <Nippon Telegraph and Telephone> of Japan said it has built a 16-megabyte chip. Analysts say commercial versions of these chips are several years away, though some suspect that IBM may start volume production of its four-megabyte chip sometime this year. Such chips will enable computer makers to build computers with immense memory capacities. Reuter 

BRAZIL SEAMEN CONTINUE STRIKE DESPITE COURT

Hundreds of marines were on alert at 11 key Brazilian ports after 40,000 seamen decided to remain on indefinite strike, even after the Higher Labour Court Saturday ruled it illegal, union leaders said. The halt, the first national strike by seamen in 25 years, started on February 27, and union leaders said they would not return to work unless they got a 275 pct pay rise. Shipowners have offered a 100 per cent raise, which the seamen rejected. "We have nothing to lose. If they want to lay off the workers, fine, but we are determined to carry on with our protest until the end," a union leader said. more He said they had decided in a meeting that if the marines take over the ships, the seamen would abandon the vessels and let the marines handle the situation by themselves. A spokesman for the Rio de Janeiro Port said the order to send marines to take over the ports was given by Navy Minister Henrique Saboya on grounds that ports are areas of national security. But he said there were no incidents. The strike has cut exports and imports and made an estimated 160 ships idle. Petrol station owners in four states also continued their shutdown and there were fears that the combination of the two stoppages could lead to a serious fuel shortage. Reuter 

BANKING TRADE GROUP SAYS BANK PROFITS DOWN

The American Bankers Association said the profitability of the nation's commercial banks declined by 12 pct during the first three quarters of 1986. During the first nine months of last year, the industry's annualized rate of return on assets dropped to 0.68 pct from 0.77 pct in the same period in 1985, the ABA said. Return on equity fell to 10.8 pct from 12.3 pct the previous year. Despite the decline in profits, the ABA said banks' capital grew boosting the industry's capital ratio to 6.4 pct from 6.3 pct. The number and size of banks losing money during the period increased significantly, the ABA said. During the first nine months of 1986, 17.5 pct of banks, holding 9.6 pct of banking assets, were unprofitable, the group said. That compares with 13 pct of banks, holding 8.8 pct of assets, during the same period in 1985, it said. The industry's provisions for loan losses increased to 0.73 pct of assets during the period, up from 0.59 pct of assets during the same period in 1985, the group said. Reuter 

PAPER INSTITUTE SEES STRONG PAPER MARKET IN '87

The American Paper Institute said the industry is headed for another year of record volume in 1987, with linerboard particularly strong. "A pro-growth trade policy, continued attention to currency management, a fairly low interest rate climate and no major tax increases are the essential ingredients in this outlook," Red Cavaney, American Paper Institute president said. Cavaney said that so far this year the industry's performance mimics last year's strength. Last year, he said, paper and paperboard production hit a record 71 mln tons, 5.9 pct above 1985's 67 mln tons, while industry after-tax profits in 1986 exceeded 1985 profits. Cavaney said that inventories will play a major role in this year's performance. "Inventories, which are generally low, are a positive factor in the industry's outlook this year," he said, citing market pulp stocks, which are currently at 21 days supply, at the low end of the industry's long term average. Cavaney added that as a result of slimmer inventories in 1986 and in the early part of this year, shipments for 1987 as a whole will be higher than last year, even if demand slackens. Cavaney said, however, he expects demand this year to be strong, spurred by consumer spending. The benefits of tax reform on individual after-tax income and consumer goods companies' cash flow, he said, will increase demand for both communications paper and packaging this year. In addition, Cavaney said low mortgage rates should support high levels of housing starts in 1987, increasing demand for many kinds of packaged goods. Inventory building should help demand for cartons and corrugated containers this year, he added. Cavaney said he expects exports to remain fairly high in 1987, as well, as a result of the recent declines in the dollar against major world currencies. But more importantly, he said, an improved balance of trade in 1987 from the lower dollar would induce increased industrial activity at home and thus higher packaging demand. Cavaney said increased competitiveness, caused by lower costs, higher productivity and improved efficiency would also contribute to a strong showing from the industry this year. Cavaney said, however, that the Tax Reform Act of 1986 could have a negative impact on the industry this year. "For manufacturers, the removal of the investment tax credit creates an impediment to future investment," he said. Also, he said API estimates the industry will lose three billion dlrs in cash flow over a five year period as a result of reforms. "Adjustments to this loss will require time and careful evaluation and will adversely affect the capital spending decisions of individual companies," Cavaney said. Reuter 

BONN SERIOUS ABOUT CURRENCY PACT, SAYS TIETMEYER

West Germany takes "very seriously" the recent undertaking by major industrial countries to promote exchange rate stability around current levels, Finance Ministry State Secretary Hans Tietmeyer said. Talking to journalists before a meeting of European Community Economy and Finance Ministers here, Tietmeyer declined to say whether the February 22 Paris accord by the Group of Five countries plus Canada included secret agreements for stabilising currencies. But he noted the official communique said the participants agreed to cooperate closely to foster stability of exchange rates around current levels. "We're taking this sentence very seriously," he said. Tietmeyer remarked that the dollar had hardly moved against the mark since the meeting. He said a slowdown in West German economic growth had been caused by sharp exchange rate swings and that the Paris agreement should help in this respect. Economics Ministry State Secretary Otto Schlecht said the Bonn government saw no current need for measures to bolster the economy but was paying close attention to the slower growth and had not ruled out "appropriate and timely" action if necessary. Schlecht and Tietmeyer were speaking ahead of a discussion by the EC ministers of the latest EC Commission report on the economic situation in the 12-nation bloc. The Commission has sharply revised down expected German gross national product growth this year to two pct from 3.2 pct predicted last autumn and says Bonn has the most room of any EC country to stimulate economic activity. Schlecht said the upturn in West Germany's economy slowed in the fourth quarter of last year and the first quarter of 1987. But he said there was no cumulative downwards trend in view that would make quick remedial action necessary. He said a number of favourable indicators such as high level of investment and a good climate for consumption meant a recovery could be expected, while exports would pick up slightly during the course of the year. REUTER 

SAUDI-FRENCH BANK TO DOUBLE PAID-UP CAPITAL

<Al Bank Al Saudi Al Fransi>, also known as Saudi-French, will double paid-up capital to 400 mln riyals from 200 mln by converting reserves into equity, bank officials said. Jeddah-based Saudi-French, 40 pct owned by Banque Indosuez and 60 pct by the Saudi public, will sign a technical services agreement with Indosuez in Riyadh on Tuesday for management of the bank over the next five years, they said. The officials said the increase in paid-up capital, doubling the number of shares held by shareholders, will add depth to the market and extend trading to more investors. REUTER 

COMPAQ COMPUTER <CPQ> HAS NEW DESKTOP COMPUTER

Compaq Computer Corp said it has introduced a new 12 megahertz desktop personal computer called the Compaq Deskpro 286R. More 

UGANDA DISAPPOINTED BY COFFEE TALKS FAILURE

Uganda, Africa's second largest coffee producer, was disappointed by the stalemate in recent coffee talks in London, the chairman of the state-run Coffee Marketing Board, CMB, said. "This has not been good for coffee producers, more so in a situation where the prices dropped by 200 pounds per tonne of robusta coffee," J. Makumbi said when he returned from London on Friday. Producers and consumers failed to agree on a quota formula to share the world's coffee production during International Coffee Organisation, ICO, talks that ended last week. Makumbi blamed the failure to set quotas, which were suspended in Feburary last year, on Indonesian demands that its quota be increased dramatically. Uganda -- which earns about 400 mln dlrs annually from coffee exports, over 95 pct of its foreign exchange earnings -- had sought to raise its ICO quota to 3.0 mln from 2.45 mln 60-kilo bags, according to sources close to the CMB. The CMB has estimated that production will rise 20 to 25 pct in the current 1986/87 October-September season to over three mln bags. For several years Uganda had been unable to meet its ICO export quota as rebel activity disrupted the coffee industry. The Ugandan government depends on coffee export duties for about 60 pct of its sales tax revenue and the industry employs over half of salaried manpower. In Dar es Salaam, Tanzania's Agriculture and Livestock Development Minister Paul Bomani said today Third World countries would suffer from the failure of the London coffee talks. "It is only the middlemen who will benefit, he said. Bomani called on the ICO to convene another meeting within two months, saying, "Once tempers have cooled and delegations have had time to report back to their headquarters, common sense will prevail." Reuter 

Chrysler to take over Renault stake in American Motors, says Renault

ADDITIONAL CCC CREDIT GUARANTEES FOR HUNGARY

The Commodity Credit Corporation, CCC, has authorized an additional 8.0 mln dlrs in credit guarantees for sales of vegetable protein meals to Hungary for fiscal year 1987, the U.S. Agriculture Department said. The additional guarantees increase the vegetable protein meal credit line to 16.0 mln dlrs and increases the cumulative fiscal year 1987 program for agricultural products to 23.0 mln dlrs from 15.0 mln, it said. The department also announced an extension of the export period from September 30, 1987, to December 31 for sales of vegetable protein meals. To be eligible for the credit guarantees all sales must be registered before export but not later than September 30. Reuter 

SOUTHERN CO TO TAKE 226 MLN DLR CHARGE ON PROJECTED VOGTLE COST RISE

APPLIED CIRCUIT<ACRT> SELLS ELECTRONICS BUSINESS

Applied Circuit Technology Inc (ACT) said it has agreed in principal to sell its primary computer electronics business to the <Sanpao Group> of San Francisco. ACT said it has not disclosed the deal's terms, but added that 50 pct of the sale price is in cash, with the remainder to be paid over a two year period. The deal is expected to close on March 31, ACT said. ACT said it made the move to concentrate resources on its pharmaceuticals subsidiaries. Reuter 

USAIR <U> ACQUIRES 9.9 PCT OF PIEDMONT <PIE>

USAir Group Inc said it has acquired 2,292,599 Piedmont Aviation Inc shares, about 9.9 pct on a fully diluted basis, from Norfolk Southern Corp <NSC>. The acquisition of Piedmont by USAir has been approved by the directors of both companies. USAir said it has been advised by Norfolk Southern that the company supports the proposed merger and intends to tender all of its remaining 1,477,829 Piedmont common shares in response to USAir's tender offer which began today. This total includes shares issuable upon conversion of Piedmont preferred, USAir noted. USAir said Piedmont has about 23.1 mln common shares on a fully diluted basis, adding its offer is conditioned on the tender of at least 9,309,394 shares, representing 40.2 pct of the oustanding shares on a diluted basis. USAir said the 3,491,030 new shares it has an option to buy represent 18.5 pct of Piedmont's currently outstanding shares. Reuter 

BRAZILIAN COFFEE RAINFALL

THE FOLLOWING RAINFALL WAS RECORDED IN THE AREAS OVER PAST 72 HOURS PARANA STATE: UMUARAMA NIL, PARANAVAI 1.5 MILLIMETRES, LONDRINA NIL, MARINGA NIL. SAO PAULO STATE: PRESIDENTE PRUDENTE O.6 MM, VOTUPORANGA 12.0 MM, FRANCA 28.0 MM, CATANDUVA 10.0 MM, SAO CARLOS NIL, SAO SIMAO NIL. REUTER11:43/VB 

GENCORP TO SELL LOS ANGELES TELEVISION STATION TO WALT DISNEY CO

NATIONWIDE CELLULAR <NCEL> COMPLETES PURCHASE

Nationwide Cellular Service Inc said it has completed the previously-announced acquisition of privately-held Nova Cellular Co, a Chicago reseller of mobile telephone service with 1,800 subscribers, for about 65,000 common shares. Nova Cellular has an accumulated deficit of about 650,000 dlrs and had revenues of about 2,600,000 dlrs for 1986, it said. Reuter 

NATIONAL WESTMINSTER BANK CUTS BASE RATE

National Westminster Bank Plc said it has cut its base lending rate 0.5 percentage points to 10.5 pct today. National Westminster said it was responding to general easing in money market rates. Its move followed a signal from the Bank of England earlier this afternoon that it would endorse a half point cut in the base rate, a surprise move following its strong signals last week that such a move would be premature. However, since then the pound has continued to gain strongly. Reuter 

U.K. MONEY MARKET GIVEN FURTHER HELP AT NEW RATES

The Bank of England said it provided the market with further assistance during the afternoon, buying bills worth 166 mln stg at the lower rates introduced this morning. It bought 45 mln stg of local authority bills plus 27 mln stg of bank bills in band one at 10-3/8 pct together with 94 mln stg of band two bank bills at 10-5/16 pct. The bank also revised its estimate of the market shortage up to 300 mln stg from 250 mln this morning. It has given total assistance of 213 mln stg today. REUTER 

CBT, CME HEADS TO ADDRESS CFTC COMMITTEE

The heads of the Chicago Board of Trade, CBT, and the Chicago Mercantile Exchange, CME, are to address a meeting of the Commodity Futures Trading Commission's financial products advisory committee March 11 in Chicago, CFTC said. CBT Chairman Karsten Mahlmann will present the objectives and views of the CBT's ad hoc committee on off exchange trading issues, CFTC said. CME President William Brodsky is set to discuss current issues involving equity index markets, including factors affecting price volatility, changes in settlement procedures, margin changes and price limits. The CFTC committee, headed by Commissioner Robert Davis, examines financial futures market issues. Reuter 

HUTCHISON UNIT BUYS CONTAINER CRANES FROM JAPAN

Container port operator, <Hong Kong International Terminals Ltd>, a 89 pct held unit of Hutchison Whampoa Ltd <HWHH.HK>, said it has placed a 164 mln H.K. Dlr order for seven quayside container cranes of 800 tons each with Japan's Mitsui Engineering and Shipbuilding Co Ltd <MSET.T> for May 1988 to August 1989 delivery. Hong Kong International Terminals operates 32 cranes. REUTER 

BOSPHORUS SHIPPING MOVES, ISTANBUL OFFICES CLOSE

Istanbul remained at a virtual standstill today under snow up to a meter deep but shipping was moving through the narrow Bosphorus waterway linking the Sea of Marmara and the Black Sea, officials said. The authorities ordered government offices closed until Wednesday. Many banks, businesses and schools stayed shut as workers struggled to keep main roads and supply lines open in this city of 6.5 mln people. The second blizzard to hit Istanbul in a week stopped yesterday afternoon and the international airport reopened today after a two-day closure. It was also shut earlier last week. Reuter 

ECUADOR TO EXPORT NO OIL FOR 4 MONTHS, OFFICIAL

The suspension of Ecuador's crude oil shipments after an earthquake cut an oil pipeline will last at least four months, a senior Energy Ministry official said. The official said Ecuador could resume exports after repairing a 40 km section of the 510 km pipeline, which links jungle oil fields at Lago Agrio to Balao on the Pacific coast. It would take about 100 mln U.S. Dlrs to repair the pipeline, the official, who did not want to be named, told Reuters. Ecuador had enough oil to meet domestic demand for about 35 days and would have to import crude to supplement stocks. The earthquake last Thursday night registered six on the 12-point international Mercalli scale. The damage to the pipeline was a severe economic blow to Ecuador, where oil accounts for up to two-thirds of total exports and as much as 60 pct of government revenues. Financially pressed Ecuador, a member of the Organisation of Petroleum Exporting Countries (OPEC), was recently pumping about 260,000 barrels per day (bpd) of crude, about 50,000 bpd above the output quota assigned by the cartel, another Energy Ministry spokesman said. Last year, it exported an average of 173,500 bpd, according to the central bank. However, Ecuador might build an emergency 25 km pipeline, costing 15 to 20 mln dlrs, to hook up with a Colombian pipeline, the first official said. He estimated it could take about 60 days to build. Ecuador, squeezed by the slide in world oil prices in 1986, had only 138 mln dlrs in net international reserves at the end of January, about equal to one month's imports. It suspended interest payments in January on 5.4 billion dlrs owed to about 400 private foreign banks. The country's total foreign debt is 8.16 billion dlrs, the eighth largest in Latin America. In Caracas, President Jaime Lusinchi said Venezuela would loan five mln barrels of crude to Ecuador over the next three months to make up for losses from damage to the pipeline. Ecuador asked for the loan to guarantee domestic supplies and would ship an equivalent volume back to Venezuela in repayment in May, Lusinchi said. A commission headed by Venezuelan Investment Fund Minister Hector Hurtado and including representatives from the interior and defence ministries and the state oil company Petroleos de Venezuela will travel to Ecuador Tuesday to evaluate and co-ordinate an emergency relief program, he said. REUTER 

FRENCH JAN M-3 MONEY SUPPLY ROSE PROV ADJUSTED ONE PCT (O.7 PCT FALL IN DEC) - OFFICIAL.

HEAVY SNOWS HIT GREECE, ITALY

Blizzards lashed Greece today, piling up to 10 feet of snow in places and paralyzing transport in what state radio called unprecedented weather conditions for this time of year. Except for a handful of flights of the national airline Olympic Airways that took off before the blizzards started, all air traffic in and out of the Athens international airport was canceled, radio said. The weather service said heavy snowfalls would continue for several hours. Cold weather also hit southern and eastern Italy. Heavy snowfalls caused long delays and difficulties for road, rail and air traffic. Reuter 

MALAYSIA SAYS RUBBER PACT DEPENDS ON CONSUMERS

Malaysia said the success of talks opening today on a new International Natural Rubber Agreement (INRA) depends on how flexible consumer countries are. Rubber producer and consumer countries meet for 12 days in Geneva from tomorrow to try to hammer out a rubber pact after they failed to reach agreement last November to replace the current accord, which expires next October. Primary Industries Minister Lim Keng Yaik said in a statement that Malaysia wants to continue with a second INRA and is prepared to accept modifications that would strengthen the present agreement. He said the second INRA would allow for an orderly disposal of the accumulated buffer stock of 375,000 tonnes, since the market is now capable of absorbing such releases. Reuter 

PHARMACIA AB LAUNCHES EUROCOMMERCIAL PAPER PROGRAMME

Pharmacia AB said it was launching a 200 mln dlr Eurocommercial paper programme as part of a move to internationalise the company's financing. Market makers will be Credit Suisse First Boston, Morgan Stanley International and Svenska Handelsbanken PLC. Pharmacia treasurer Bertil Tiusanen said gaining direct access to the short term international capital market would improve its ability to meet its dollar borrowing requirement. He said it was a natural step for an internationally known company whose shares are noted in Tokyo and Stockholm and are traded over the counter in the United States. REUTER 

MCDOWELL <ME> TO MERGER WITH <INTERPHARM INC>

McDowell Enterprises Inc said it has signed a definitive agreement to acquire an 80 pct interest in privately held Interpharm Inc for a 19.9 pct interest in McDowell. The company said subject to contigencies, including future sales and profit levels, McDowell could over a four-year period acquire 100 pct of Interpharm in exchange for up to 51 pct of McDowell's voting stock. It said the transaction is expected to be completed within 60 days, at which time the McDowell board would be restructured to include Interpharm management. Reuter 

FEDERAL HOME MORTAGE BUYS FUNDS FROM LENDER

The Federal Home Mortgage Corp announced the sale of 400 mln dlrs for residential mortgages to First Union Corp's mortgage subsidiary. Freddie Mac said that First Union Mortgage Corp already swapped 70 mln dlrs of new residential mortgages to Freddie Mac in the first phase of the contract. Freddie Mac said buy selling 400 mln dlrs worth of mortages, it makes more mortgage money available. It said through its guarantor program, First Union will be allowed to convert its investment-quality mortgages into mortgage-backed securities accepted in capital markets. Freddie Mac explained that the securities can be used as collateral for borrowings, sold to other investors, or employed in a variety of cash management techniques. Reuter 

BRITISH CALEDONIAN SEEKS SAN DIEGO SERVICE

British Caledonian Airways said it has filed an application with the British Civil Aviation Authority for a license to operate between San Diego's Lindbergh Field and London's Gatwick Airport. It said it would extend its existing Los Angeles/London nonstop service to San Diego and would initially offer three roundtrips weekly. Reuter 

RENAULT, CHRYSLER IN ACCORD FOR CHRYSLER TO BUY AMC

Regie Nationale des Usines Renault <RENA.PA> said it and Chrysler Corp <C> have signed a letter of intent in which Chrysler plans to buy American Motors Corp <AMO.N>, 46 pct owned by Renault. Renault President Raymond Levy said in a statement issued by the French state car group the agreement was an important stage in Renault's redeployment. "It will allow Renault to continue its export programme to the U.S. And also opens a perspective of cooperation with a major American constructor," the statement said. Under the terms of the letter of intent, Chrysler will purchase Renault's stake held in the form of bonds and shares. The Renault statement quoted Chrysler Chairman Lee Iacocca as saying, "We welcome AMC shareholders into the Chrysler family." He added that the accord would allow Renault and Chrysler to study the development of future products destined to be distributed by Renault and Chrysler in the North American and world markets. "Renault is a leader in our industry and I am happy to be working with them," Iacocca was quoted as saying. Chrysler will pay for Renault's AMC interests held in bonds by a 200 mln dlr bond and will pay up to 350 mln dlrs for Renault share interests, depending on AMC sales and future profits, the Renault statement said. The statement said the agreement in principle gave each side 30 days to put together a definitive accord. Approval would also be necessary from the Renault, Chrysler and AMC boards, from AMC shareholders and the relevant government authorities. If the deal goes ahead, the statement said, AMC shareholders other than Renault will receive Chrysler shares for each of their shares valued at four dlrs. AMC shareholders with convertible preferential shares will have the possibility to exchange them for Chrysler shares on the same conditions as those they would have had in exchanging them for AMC shares. Reuter 

HOG AND CATTLE SLAUGHTER GUESSTIMATES

Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 285,000 to 300,000 head versus 292,000 week ago and 309,000 a year ago. Cattle slaughter is guesstimated at about 125,000 to 131,000 head versus 129,000 week ago and 119,000 a year ago. Reuter 

<BURTON GROUP PLC> TO TRADE ADR'S IN U.S.

British retailer Burton Group PLC said trading in its American Depositary Receipts will start today. Each ADR represents four Burton shares. Reuter 

CLAIRE'S STORES <CLE> FEBRUARY SALES RISE

Claire's Stores Inc said February sales were up 46 pct to 6,360,000 dlrs from 4,350,000 dlrs a year before, with same-store sales up 16 pct. The company said March sales may not increase at the sdame rate, since Easter falls late in April this year, but earnings and sales for the first quarter should be up significantly from a year ago. In last year's first quarter ended May Three, Claire's earned 934,000 dlrs on sales of 18.4 mln dlrs, compared with earnings of 2,289,000 dlrs on sales of 16.4 mln dlrs a year earlier. Reuter 

Bank of France said it cut money market intervention rate to 7-3/4 pct from eight pct

FIRST BOSTON AFFILIATE TO ACQUIRE ALLEGHENY INT'L FOR 24.60 DLRS/SHR

SOUTHERN <SO> TO TAKE CHARGE ON VOGTLE COST

Southern Co said it will take an after-tax charge of 226 mln dlrs against earnings no later than January 1988 because the projected cost of the Vogtle nuclear power plant has risen abover the amount which retail customers in Georgia will be asked to pay. The company's largest subsidiary, Georgia Power Co, said the budget for the plant has increased by 6.3 pct, or 522 mln dlrs, to 8.87 billion. However, because of a pledge the made last year to Georgia's Public Service Commission, the increased cost will not be included in the utility's retail electric rates. Geogia Power also said its board has delayed the scheduled completion of Vogtle's Unit Two to June 1989 from September 1988. Unit Two is about 60 pct complete, it added. The utility said fuel loading has been completed at Unit One and the unit is being put through a series of low-power tests before the Nuclear Regulatory Commission is asked for a full-power license. The nuclear power plant, located near Waynesboro, Ga., is co-owned by <Oglethorpe Power Corp>, the Municipal Electric Authority of Georgia and the city of Dalton. Georgia Power said the revised Vogtle budget estimate was due to several factors, including additional labor costs incurred to keep the plant's first unit on schedule for commercial operation by June. The new figure represents the first change in the plant's budget since August 1985, when it was estimated at 8.35 billion dlrs. In March 1986, the utility told Georgia regulators it would "cap" the price of Vogtle its customers would be asked to pay at 3.56 billion dlrs, the company's share of the then projected 8.35 billion dlr total. Under the new budget, Georgia Power said, its share amounts to 3.87 billion dlrs. Noting that Georgia Power's share of the Vogtle increase is 313 mln dlrs, Southern said this will result in a charge against earnings of 177 mln dlrs after taxes. In addition, the company said, Georgia Power's contracts with the joint owners require the utility to buy back significant amounts of Vogtle capacity during the plant's initial years of operation. Under terms of the cap on costs, it will not attempt to recover the portion of the budget increase that applies to the buybacks. This bings the total amount that must be charged against earnings to 2326 mln dlrs after taxes, Southern said. Southern said new rules of the Financial Accounting Standards Board, which are effective in January 1988, require any costs that are determined nonrecoverable to be charged against earnings once that determination is made. The company also said its board has approved a capital budget of 2.1 billion dlrs in 1987, including work on the Vogtle project. It said a 5.9 billion dlr capita budget for the three-year period 1987-1989 was also outlined at the board meeting, noting this is 700 mln dlrs below the comparable figure for the years 1986-1988. Reuter 

STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER

Sweden's Stora Kopparbergs Bergslags AB <SKPS ST> said it had now acquired 90 pct of shares in rival pulp and paper makers Papyrus AB, thus passing the threshold above which it can compulsorily buy the rest of the company. Remaining shareholders would have until later this month to sell their shares to Stora, the company said in a statement. Stora announced last September it would acquire Papyrus at a price of 5.8 billion crowns, thus forming Europe's second largest forest group after London-based Reed International Plc <REED L>. REUTER 

JAPAN EX-IM BANK SAYS NO NEW COMMITMENTS TO BRAZIL

Export-Import Bank of Japan president Takashi Tanaka told Brazil the bank will continue to cooperate with it, but he refrained from making any commitment to a new credit, Ex-Im officials said. In a 30-minute meeting, Tanaka told Brazilian Finance Minister Dilson Funaro the bank would consider his country's request for a 300 mln dlr credit in the context of international cooperation, the officials said. They said this meant the Ex-Im Bank would grant the credit as part of a package with money from the International Monetary Fund and private banks. Brazil has resisted going to the IMF for help because it fears that the Fund will ask for changes in its economic policies that will throw it into recession. Brazil first requested the 300 mln dlr credit last November, to help it develop the sale and generation of electric power. Funaro renewed the request today. REUTER 

OECD TRADE, GROWTH SEEN SLOWING IN 1987

The 24 nations of the Organisation for Economic Cooperation and Development (OECD), hampered by sluggish industrial output and trade, face slower economic growth, and their joint balance of payments will swing into deficit in 1987, the Economist Intelligence Unit (EIU ) said. The EIU said in its World Trade Forecast it revised OECD economic growth downwards to 2.5 pct this year, compared with a 2.8 pct growth forecast in December. It said the new areas of weakness are West Germany and the smaller European countries it influences, and Japan, hardest hit by currency appreciation this year. The independent research organisation cut its 1987 growth rate forecasts for West Germany to 2.2 pct from 3.2 pct in December and to 2.3 pct from three pct for Japan. It said it expected the OECD to post a current account deficit of some 13 billion dlrs in both 1987 and 1988, due in large part to a 1.50 dlrs a barrel rise in 1987 oil prices. It said the U.S. Current account deficit looked likely to fall even more slowly than forecast, to 125 billion dlrs in 1987 and 115 billion in 1988 from 130 billion in 1986. It said it expected West Germany to post a 31 billion dlr payments surplus and Japan a 76 billion dlr surplus this year. The EIU said it saw oil prices dropping to around 16.50 dlrs a barrel by end-1987 and 15.50 dlrs in 1988 from about 18 dlrs last year, as adherence to OPEC output policy becomes increasingly ragged. It said the dollar is poised to resume its decline in foreign exchange markets, and will lose a further 13 pct on its trade-weighted index this year and five pct in 1988 after last year's 18.4 pct drop. The average mark/dollar rate is put at 1.80 marks this year and 1.70 in 1988 while the yen/dollar rate is expected to break through the 150 yen barrier with an average value of 150 yen in 1987 and 146 yen in 1988, it said. "This is not a crash scenario but the dollar's steeper angle of descent increases the risk of ending with a fireball rather than a three-point landing," the EIU said. "Talking will not stop the dollar's slide for long and the February meeting (of finance ministers of the Group of Five and Canada) produced scant promise of either a decisive shift to more expansive policies in West Germany and Japan, or a tighter U.S. Fiscal policy," it said. It said the key to the dollar's fortunes was the willingness of Japanese institutions to buy U.S. Government assets despite prospects of sustaining a currency loss. "Thus far they have been willing," the EIC said, adding that if Japan was deterred from buying U.S. Bonds the dollar would collapse. To contain such a currency crisis, dollar interest rates would have to soar, bringing recession and a Third World debt crisis, it said. On trade, the EIU said prospects for 1987 look "increasingly sick." Import growth, forecast in December at 4.5 pct, is now seen slowing down to around 3.8 pct in 1987 with a recovery only to 4.2 pct in 1988, it said. The weakness of the West German economy is the biggest single factor, with import growth there expected to feature a sluggish 3.5 pct growth in 1987 against the 6.5 pct forecast in December, the EIU said. On the export side, it said it saw weak demand in West Germany affecting export prospects elsewhere in Europe, while Japan's exports in 1987 would remain flat and sales by U.S. Exporters would respond only marginally to a lower, more competitively-priced dollar. It said in most of Europe and in Japan, raw materials and oil will cost less in domestic currency in 1987 than in 1986. However, rates of inflation will edge up in 1988 to over the current OECD average of three pct. Non-oil commodity prices will show a modest dollar price increase in 1988 for the first time since 1984, the EIU said. After a rise of 18 pct in 1986, the dollar price of internationally traded manufactures will go up by 8.5 pct in 1987 and by five pct in 1988, it said. It said OECD industrial production would rise by only 1.6 pct in 1987 after a weak 1.5 pct increase in 1986. Reuter 

PHARMACIA AB LAUNCHES EUROCOMMERCIAL PAPER PROGRAMME

Pharmacia AB said it was launching a 200 mln dlr Eurocommercial paper programme as part of a move to internationalise the company's financing. Market makers will be Credit Suisse First Boston, Morgan Stanley International and Svenska Handelsbanken PLC. Pharmacia treasurer Bertil Tiusanen said gaining direct access to the short term international capital market would improve its ability to meet its dollar borrowing requirement. He said it was a natural step for an internationally known company whose shares are noted in Tokyo and Stockholm and are traded over the counter in the United States. REUTER 

U.K. MONEY MARKET GIVEN LATE HELP WORTH 15 MLN STG

The Bank of England said it provided the market with unspecified late assistance worth 15 mln stg. It has given the market total assistance of 228 mln stg today compared with a liquidity shortage it estimated at a revised 300 mln stg. REUTER 

BANK OF FRANCE CUTS INTERVENTION RATE

The Bank of France said it cut its money market intervention rate to 7-3/4 pct from eight pct when it injected money against first category paper. The bank also cut its seven-day repossession rate to 8-1/2 pct from 8-3/4 pct. The intervention rate has stood at eight pct since it was raised from 7-1/4 pct on January 2 as the French franc came under pressure ahead of the EMS realignment on January 11. The bank said the purchase, effective tomorrow, is for five pct of private paper and fixed rate Treasury bills maturing between March 25 and June 25 and of other Treasury bills maturing between March 25, 1987 and March 25, 1989. The rate cut had been expected since the bank announced a money market intervention tender earlier today. Money market dealers said conditions seemed right for a quarter percentage point cut, reflecting an easing in the call money rate last week, and the French franc's steadiness on foreign exchange markets since the February 22 currency stabilisation accord here by the Group of Five and Canada. REUTER 

WHITE ENGINE BOUGHT BY PRIVATE INVESTOR

White Engine, a manufacturer of industrial and automotive diesel and gasoline engines with more than 100 mln dlrs in sales, said it has been sold to a group of group investors. White Engine said the purchase is led by Donald Stewart, a private investment banker, along with White senior executives. A source close to the transaction said the purchase prices is being set at more than 55 mln dlrs. The company said it will change its name to Hercules Engines Inc, and Stewart will be the majority interest owner, as well as the president and chief executive officer. In addition, John Lennon, current chairman and chief executive officer, will remain as chairman, he company said. And Joseph G. Scheetz, currently president, will be vice chairman, according to the company. Reuter 

GROUP-77 OFFICIALS SET AGENDA FOR DHAKA MEETING

Most commodity agreements are close to collapse and the debt problem continues to weigh heavily on developing countries, Bangladesh Commerce Minister M.A. Munim told officials from 30 Asian countries in the Group of 77. The officials are meeting to finalise the agenda for the group's regional ministerial conference here Saturday. Delegates from all 43 Asian member countries of the G-77 are expected to attend the later meeting. Commerce Ministry officials said the countries will try to adopt a common strategy to counter protectionist measures by developed countries and forge developing country cooperation Commerce Secretary A.B.M. Ghulam Mostafa said the officials would discuss issues relating to financial resources, commodities, international trade and least developed countries, and formulate "concrete measures towards concerted action." Recommendations of the Dhaka meeting will be placed before the July United Nations Conference on Trade and Development meeting at Geneva, officials said. The Dhaka meeting would also discuss the possibility of setting up a "South Bank," along the lines of the Asian Development Bank, to boost financial exchanges and economic coperation between developing countries. It has not been proposed formally and no details were given. Reuter 

STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER

Sweden's Stora Kopparbergs Bergslags AB <SKPS.ST> said it has now acquired 90 pct of shares in rival pulp and paper makers Papyrus AB, thus passing the threshold above which it can compulsorily buy the rest of the company. Remaining shareholders would have until later this month to sell their shares to Stora, the company said in a statement. Stora announced last September it would acquire Papyrus at a price of 5.8 billion crowns, thus forming Europe's second largest forest group after London-based Reed International Plc <REED L>. REUTER 

ALLEGHENY INT'L <AG>, FIRST BOSTON SET MERGER

Allegheny International Inc said it has entered into an agreement to merge with an affiliate of First Boston Inc's <FPC> First Boston Corp in a transaction valued at about 500 mln dlrs. Allegheny said the agreement calls for holders of its common to receive 24.60 dlrs a share. Holders of the company's 2.19 dlrs cumulative preference shares will receive 20 dlrs a share and those owning its 11.25 dlrs convertible preferred will receive 87.50 dlrs a share. Allegheny International said the agreement calls for the First Boston affiliate to start a cash tender offer for all outstanding shares of Allegheny's common, cumulative preferred and convertible preferred. The company said First Boston has committed to provide all financing necessary to acquire such securities in the tender offer which is estimated to be about 500 mln dlrs. It said the agreement is also subject to the waiver by March 13 of certain conditions under the company's existing bank credit agreement. Allegheny International's statement did not name or describe the First Boston affiliate involved in the agreement. It did say the offer for the company's stock will be conditioned also on the valid tender of securities representing at least a majority of the voting power for the election of directors of the company and the valid tender of at least two third's of the outstanding cumulative preferred and convertible preferred shares. Reuter 

FRENCH JANUARY M-3 MONEY SUPPLY RISES ONE PCT

French money supply, measured in terms of M-3, rose a provisional one pct in January after falling 0.7 pct in December, the Bank of France said. M-3 is the main money supply aggregate used by the French monetary authorities. It has been joined as a second main money supply aggregate for 1987 by M-2, which rose a provisional 1.2 pct in January after falling a confirmed 0.9 pct in December. Calculated on a three-month moving average basis, M-3 rose 4.4 pct year-on-year in the quarter based on December after rising 5.4 pct in the quarter centred on September. The M-2 aggregate, centred on a three-month moving average, rose year-on-year by four pct, within a 1987 target range of four to six pct. M-1 rose 2.5 pct after a 1.1 pct fall in December. M-1 measures notes and coins in circulation plus sight deposits. M-2 adds in short-term bank deposits and M-3 adds in other short-term deposits. The central bank's widest measure of liquidity, L, rose 1.5 pct in January after one pct fall in December. The bank said the money supply growth reflected a net increase of sight deposits and renewed interest in money market instruments. REUTER 

CHRYSLER SAYS AMC HOLDERS TO GET CHRYSLER STOCK WORTH FOUR DLRS A SHARE UNDER BUYOUT PLAN

GENEX CORP <GNEX> GETS FINANCING

Genex Corp said it has completed an agreement for Eberstadt Fleming Venture Capital's Plant Resources Venture Fund II and Morgenthaler Venture Partners II and accounts managed by Citicorp <CCI> to provide it with a four mln dlr interim credit line. It said the Eberstadt venture capital funds and the Citicorp accounts will receive warrants to buy 1,666,667 common shares at 60 cts each and two representatives of the funds will be named to the Genex board. Genex said as part of the transaction, it has signed an emplopyment agreement for a senior executive it did not name to become president and chief executive officer of Genex at the end of March, on completion of his obligations to his current employer. The company said over the next six months, it will use its best efforts to increase its authorized capital and make a six to eight mln dlr rights offering to holders of its convertible preferred stock at 60 cts per equivalent common share, with proceeds to be used to repay sums drawn from the interim line of credit and for working capital. Genex said the rights would not be transferable separately from the common stock. It said its three largest shareholders, Robert F. Johnston, Koppers Co <KOP> and J. Leslie Glick, who together own about 34 pct of Genex stock, will provide irrevocable proxies to the venture firms on completion of the rights offering and have agreed not to exercise their rights to acquire stock in the rights offering. Genex said the venture firms will have the right to buy any unsubscribed shares of convertible preferred and may buy additional shares at the time of the rights offer. Reuter 

TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES

The Turkish Central Bank set a Lira/Dollar rate for March 10 of 773.05/776.92 to the Dollar, down from the previous 769.60/773.45. The Bank also set a Lira/Mark rate of 417.20/419.29 to the Mark, up from the previous 419.15/421.25. 

CONTINENTAL BANK/CANADA SETS DISTRIBUTION

Continental Bank of Canada, a subsidiary of Lloyds Bank PLC <LLOY.L>, said it intends to redeem all existing preferred shares and distribute a stock dividend to common shareholders. The initial distribution will be in cumulative redeemable retractable floating rate class A preferred shares series II, which will carry a retraction right enabling holders to receive 12.75 dlrs for each share. Continental said the 58.6 mln dlrs of existing outstanding preferred shares will be paid off at par plus accrued dividends. Continental said the notes will carry a dividend rate of 72 pct of prime and it expects that the shares will trade at 12.75 dlrs or more, enabling shareholders who wish to receive cash to do so. The bank said it expects the distribution will be made in early May, subject to various approvals. Continental also said that, as of March 2, it had cash of more than 250 mln dlrs and equity of about 284.6 mln dlrs, allowing for a final total distribution of 16.60 dlrs per common share. Continental Bank said it continues to expect that the final distribution to shareholders will be in the range of 16.50 dlrs to 17.25 dlrs per share and will take place in late 1988 or early 1989. Until the initial stock distribution takes place, regular dividend payments will be maintained on the existing preferred shares, the bank said. The distribution is part of the terms of Continental Bank of Canada's sale of its banking assets to Lloyds Bank Canada, a subsidiary of Lloyds Bank PLC. Continental Bank said Lloyds Bank Canada paid the balance of the purchase price but that it was lower than originally anticipated since Continental was unable to transfer certain income tax deductions to Lloyds Bank. Continental did not give further details. More 

STUDY SAYS U.S., CANADA PACT WOULD SPUR ECONOMIES

A free trade pact between the United States and Canada could spur the economies of both sides substantially, according to a study released by the Institute for International Economics. The study, by Paul Wonnacott, said a successful conclusion to the free trade talks now under way could raise Canada's gross national product by more than five pct and expand U.S. export's by about seven pct. He said the pact could resolve the knotty issue of government subsidies, end curbs on trade in services and investments and pave the way for new global talks under the General Agreement on Tariffs and Trade. The United States and Canada - the world's two biggest trading partners with cross border shipments of about 150 billion dlrs a year - opened free trade talks last June. They are aiming for a pact by next October. Wonnacott, an economics professor at the Univerity of Maryland, said an agreement should include: - Elimination of tariffs between the two countries, phased in over a five to 10-year period; - Equal access to federal government procurement in the two countries, replacing current "Buy America" and "Buy Canada" provisions with a "Buy North America" provision; - Fewer restrictions in trade in services, chiefly finance and transportation; - A commitment not to screen foreign investments in favor domestic producers; - A commission to resolve bilateral trade disputes. Wonnacott said that to resolve the subsidy problem, the two sides should permit export subsidies of exports of up to 2.0 or 2.5 pct without imposing coutervailing duties. The limit on subsidies is now 0.5 pct. He proposed that any attempt to impose new duties to offset subsidies should go first a special disputes commission for resolution at an early stage. Wonnacott said "bilateral free trade would contribute to the efficiency of the North American economies and to their competitiveness in facing overseas producers. He said it would it would open U.S. markets to Canadian goods and enable them to benefit from the economies of mass production. Benefits to the United States would be fewer than those to Canada proportionately, he said, because of the already large U.S. gross national product. Wonnacott said also that a U.S.-Canada pact in such areas as export subsidies and the creation of a dispute commission could set an example for the current attempt by GATT to write new and more liberal global trading regulations. Reuter 

CBT, CME HEADS TO ADDRESS CFTC COMMITTEE

The heads of the Chicago Board of Trade, CBT, and the Chicago Mercantile Exchange, CME, are to address a meeting of the Commodity Futures Trading Commission's financial products advisory committee March 11 in Chicago, CFTC said. CBT Chairman Karsten Mahlmann will present the objectives and views of the CBT's ad hoc committee on off exchange trading issues, CFTC said. CME President William Brodsky is set to discuss current issues involving equity index markets, including factors affecting price volatility, changes in settlement procedures, margin changes and price limits. The CFTC committee, headed by Commissioner Robert Davis, examines financial futures market issues. Reuter 

GULF RESOURCES <GRE> TO HAVE GAIN ON STOCK SALE

Gulf Resources and Chemical Corp said it has sold 9,534,633 shares of <Imperial Continental Gas Association> for 720 pence a share, or 68.6 mln stg, in a private transaction for a pretax gain of about 19.6 mln dlrs. Gulf Resources said it still owns 6.7 mln shares of Imperial Continental, or a 4.6 pct interest, and continues to study various alternatives. Reuter 

BAILIFF APPOINTED TO SEEK OUT FERMENTA FOUNDER

A Stockholm court today appointed a bailiff to find the founder of troubled Swedish biotech group Fermenta AB <FRMS.ST>, who is being sued for 30 million crowns by a disgruntled shareholder. The court heard that Refaat el-Sayed, sacked from the Fermenta board after losing his principal shareholding to creditors, had failed to reply to an official court notice about the action which was sent to him two weeks ago. The bailiff was appointed to find el-Sayed and gain an official response to the court notice within the next fortnight. Reuter 

ROTTERDAM GRAIN HANDLER SAYS PORT BALANCE ROSE

Graan Elevator Mij said its balance in port of grains, oilseeds and derivatives rose to 136,000 tonnes on March 7 from 31,000 a week earlier, after arrivals of 523,000 tonnes and discharges of 418,000 tonnes last week. The balance comprised 38,000 tonnes of grains and oilseeds and 98,000 tonnes of derivatives. This week's estimated arrivals total 194,000 tonnes, of which 45,000 are grains/oilseeds and 149,000 derivatives. The figures cover around 95 pct of Rotterdam traffic in the products concerned. Reuter 

DONALD TRUMP SAID HE HAS AGREED TO PURCHASE CROSBY ESTATE'S RESORTS SHARES

U.K. AGRICULTURAL FUTURES MARKETS TO MERGE

Three London markets which trade potato, soymeal and meat futures said they will merge to form a new Agricultural Futures Exchange. Legal advisers have been instructed to implement the amalgamation of the London Potato Futures Association, LPFA, the London Meat Futures Exchange, LMFE, and the Grain and Feed Trade Association's, GAFTA, Soya Bean Meal Futures Association, SOMFA. No timetable was given. Members of the three exchanges have been consulted, Agricultural Futures Exchange secretary Bill Englebright told Reuters, and no objections have been raised to the merger. Three markets are involved at present but the new exchange could ultimately combine five markets. Discussions are taking place with the Baltic International Freight Futures Exchange, BIFFEX, and the GAFTA London Grain Futures Market is considering the possibility of joining the other markets, market officials said. The BIFFEX board is expected to reach a decision on the merger at its meeting at the end of this month, after members are consulted at a meeting on March 16. The grain futures market also intends to consult its members soon, GAFTA director general James Mackie said. The aim of the amalgamation is to limit regulatory and administrative costs and achieve the recognition required under the 1986 Financial Services Act. This legislation requires a futures market to become a Recognised Investment Exchange, RIE, for trading to continue. Representatives of all the futures markets on the Baltic Exchange have been discussing the possibility of a single RIE structure since the beginning of the year. The new exchange now planned will apply to the Securities and Investments Board for recognition as an RIE "at the appropriate time," the Agricultural Futures Exchange said. "This commitment by the markets will enable progress to be made to develop a stronger and more effective exchange to the benefit of all those involved in the industry," the chairman of the formation committee, Pat Elmer, said. The merged markets will remain at the Baltic Exchange. Reuter 

BSN <BSN> SHARE SALE ADVANCES

BSN Corp said its agreement to sell 1,750,000 new common shares, or a 25 pct interest, to 31 unaffiliated European institutional investors for 30.4 mln dlrs has become definitive. The company said closing is expected shortly after the filing of a registration statement with the Securities and Exchange Commission, which is expected to be made this month. Reuter 

GENCORP<GY> UNIT TO SELL LOS ANGELES TV STATION

Gencorp said its RKO General subsidiary agreed to sell KHJ-TV in Los Angeles to Walt Disney Co <DIS> for 217 mln dlrs cash plus working capital and other adjustments at closing. The company said under the agreement in principle, RKO's application to renew the station's broadcast license would be dismissed and the competing application of Fidelity Television would be granted. Disney would then acquire privately held Fidelity for about 103 mln dlrs and other adjustments. Renewal of the KHJ-TV license has been challenged in regulatory proceedings for more than 20 years. The deal is subject to prior approval by the Federal Communications Commission, the company said. Late in 1985, Gencorp cut a deal with Fidelity, a Los Angeles investor group, and Westinghouse Electric Corp <WX> to settle the license proceedings and sell KHJ-TV for 313 mln dlrs, 70 pct of which would go to Westinghouse and the remainder to Fidelity. But on Jan 28, 1987, Westinghouse withdrew from the deal because the FCC would not approve it. In early 1986, Gencorp and RKO agreed to sell WOR-TV in Secaucus, N.J., to MCA Inc <MCA> for 387 mln dlrs. The FCC has approved the transaction, but several parties have appealed. The FCC has not said when it would rule on the appeals, according to a spokemsan for Akron, Ohio-based Gencorp. Fidelity Television originally filed a competing application for the RKO license for KHJ, an independent station, in 1965. In 1980, the FCC disqualified RKO as licensee of WNAC-TV in Boston, citing anti-competitive trade practices and inaccurate financial reporting to the agency, causing renewals previously granted to RKO in New York, for WOR, and Los Angeles, for KHJ, to be denied. Reuter 

BARCLAYS BANK SAID IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.

MIDLAND BANK SAID IT CUTTING ITS BASE RATE TO 10.5 PCT FROM 11 PCT.

IMATRON <IMAT> SELLS STAKE TO MITSUI <MITSY>

Imatron Inc said Mitsui and Co Ltd of Japan has purchased a two mln dlr equity interest in Imatron at market price and was granted a 120-day option to make another two mln dlr investment at the same price. Imatron said Mitsui, the exclusive importer of Imatron's Ultrafast computed tomography scanners into Japan, is scheduled to take delivery of its first scanner next month for installation in a large cardiology center. It said it has entered into preliminary discussions with Mitsui on the formation of a joint venture to finance the accelerated development of Imatron's technology and its commercialization in Japan. Reuter 

MOROCCO LIKELY TO GET OVER 100 MLN DLRS IN AID

Morocco, buoyed by an economic turnaround and last week's Paris Club debt rescheduling, is likely to obtain over 100 mln dlrs worth of development aid at a meeting with donors beginning here tomorrow, John Shilling, director of the World Bank's Moroccan division, said. "A certain optimism has appeared in the economy to the effect that things are no longer impossible and Morocco can get out of its problems ... We are aiming for 100 mln Special Drawing Rights and if we can get more it will be put to good use," he told a news conference. The agreement last week with the Paris Club of western creditors rescheduling over 10 years 900 mln dlrs worth of official debt due by mid-1988, together with an accord late last year to reschedule 1.8 billion dlrs of commercial bank debt, had already encouraged donors to increase aid, he added. Debt sources said a World Bank concessional loan of around 200 mln dlrs to help rationalise Morocco's public sector was likely to be agreed in Washington soon. REUTER 

A.H. ROBINS'S <QRAH> JANUARY EARNINGS UP

A. H. Robins Co, the drug company in bankruptcy proceedings due to litigation over its Dalkon Shield contraceptive device, reported consolidated net earnings for the month ended January 31 of 17.3 mln dlrs. In the corresponding year-ago period it reported net earnings of 13.8 mln dlrs. Robins said the filings were made with the U.S. trustee overseeing its chapter 11 bankruptcy case. Reuter 

BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT

Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow. REUTER 

CONTROL DATA <CDA> TO BUY PERIPHERALS STAKE

Control Data Corp said it agreed to acquire Unisys Inc's <UIS> 13 pct stake in <Magnetic Peripherals Inc>. The letter of intent provides that Unisys converts from an owner in Magnetic Peripherals to a customer of Control Data's data storage products group over a two year period. Under the agreement, Control Data will continue to furnish disk drives to Unisys, it said. No other details of the proposed agreement were available. Magnetic Controls, managed by the data storage products group of Control Data, was founded in 1975 as a joint venture to maintain a technological base in data storage, and supply peripheral equipment for the computer systems of its owners. The venture has become a developer and manufacturer of high performance, high-capacity data storage products sold by Control Data to computer systems manafacturers worldwide, it said. After conversion of the Unisys interest, Control Data will own 80 pct, Honeywell Inc <HON>, 14 pct and Bull S.A. of France, six pct, it said. Reuter 

DONALD TRUMP TO BUY CROSBY RESORTS <RTB> STOCK

Casino hotel operator and real estate developer Donald Trump said he has agreed to purchase the Class B common stock of Resorts International Inc held by the family and estate of late Resorts chairman James Crosby for 135 dlrs per share. Trump said he is also considering a tender offer for remaining Class B shares at the same price but has no interest in Resorts' Class A shares. Trump said the shares he has agreed already to buy represent a 78 pct interest in the Class B stock. The estate itself owns 340,783 of the 752,297 Class B shares. There are also about 6,432,000 Class A shares outstanding, but Trump said "I have no interest in the Class A shares." Each Class B share has 100 times the voting power of a Class A share. In Atlantic City, Resorts said in a statement that the Class B shares being sold to Trump represents 73 pct of the combined voting power in Resorts. It said closing is dependent on receipt of necessary regulatory approvals and other matters, and after closing, Trump will tender for remaining Class B shares at the same price. Reuter 

USAIR <U> WINS COURT ORDER AGAINST TWA <TWA>

USAir Group Inc said a U.S. District Court in Pittsburgh issued a temporary restraining order to prevent Trans World Airlines Inc from buying additional USAir shares. USAir said the order was issued in response to its suit, charging TWA chairman Carl Icahn and TWA violated federal laws and made misleading statements. TWA last week said it owned 15 pct of USAir's shares. It also offered to buy the company for 52 dlrs a share cash or 1.4 billion dlrs. More 

GREASE MONKEY <GMHC> GETS, REJECTS MERGER OFFER

Grease Monkey Holding Corp said it has received and rejected an unsolicited merger offer from Jiffy Lube International Inc <LUBE>. The company said the proposal involved an exchange of Grease Monkey common stock for a combination of Jiffy Lube securities with an estimated current value substantially below Grease Monkey's current market price. It said it will not disclosed details. Reuter 

HIGH COURT DECLINES TO HEAR APPEAL ON ATT CASE

The Supreme Court declined to hear an appeal by U.S. West Inc <USW> challenging whether a consent decree was legally binding on the seven regional telephone firms created by the breakup of American Telephone and Telegraph Co <T>. The justices, without comment, let stand a ruling by a U.S. Court of Appeals last August that the restrictions of the 1982 decree were legally binding on the regional companies, even though they were not parties to it. U.S. West, one of the seven regional companies, argued that the restrictions violated the constitutional protections of due process under the law because AT and T did not adequately represent its subsidiaries during the consent decree proceedings. The Justice Department urged the Supreme Court to reject the appeal, saying, "As a parent corporation, AT and T had the legal authority to bind (its operating subsidiaries) in a consent decree." Also opposing the appeal was AT and T. The appeals court ruling also allowed the Bell operating companies to offer certain services outside their territory without express permission of the federal courts. That part of the ruling was not appealed to the Supreme Court. Justice Antonin Scalia did not take part in today's ruling, and the court gave no explanation. Reuter 

U.S. RULING ON BRAZIL FCOJ MAY COME TOMORROW

A decision on final dumping duties on frozen orange juice from Brazil may not be issued until tomorrow, Commerce Department officials said. They said the department has until midnight tonight to set the duty but may not make the finding public until tomorrow. A preliminary duty of 8.54 pct was set October 17, 1986. The final ruling will be based on more detailed information, the officials said. Reuter 

Bank of England says issuing further one billion stg 8-3/4 pct bonds due 1997

CHRYSLER <C> IN DEAL TO BUY AMC <AMO>

Chrysler Corp said it agreed in principle with French state-owned Renault to acquire American Motors Corp., in which Renault is controlling shareholder, under a deal in which AMC stockholders other than Renault would receive Chrysler common stock with a market value of four dlrs for each AMC common share they hold. Chrysler said the letter of intent for the deal, which needs government and AMC shareholder and board approval, provides that AMC holders will receive not more than .0840 or less than .0687 of a share of Chrysler common for each share of AMC common they hold. more