.I 1 .C earn 1 .T COMMERZBANK SEES LOWER OPERATING PROFIT THIS YEAR. .W FRANKFURT, April 1 - Commerzbank AG management board chairman Walter Seipp said that from the present viewpoint the bank must expect 1987 full operating profit to be lower than in 1986. In the first two months of the year, partial operating profit -- excluding trading on the bank's own account - declined, he said, without giving details. The interest surplus fell 2.8 pct compared with 2/12ths of 1986 results, while the commission surplus, because of the quiet stock exchange business, fell back still more strongly. By contrast the personnel and fixed asset expenses increased. German banks do not report full operating profit. But Seipp said last year the figure for the first time had topped one billion marks for the parent bank, and the group result was around 50 pct higher than this. Commenting on 1986, Seipp said, "we were able to raise the full operating profit...Slightly above the record result of 1985 because own account profits increased slightly." He gave no concrete details but added that in January and February, good own account trading profits meant that the drop in full operating earnings was more modest than that in the partial operating figure. The bank would, as a result, be more profit-oriented in future, developing, for example, more into investment banking, keeping a tight rein on personnel costs and dampening expenditures on fixed assets. Turning to 1986 results, Seipp said by year end there had been a strong growth in business volume. Over the year business volume rose by 9.9 pct to 93.2 billion marks compared with 1985, Seipp added. Group balance sheet volume rose by 8.0 pct to 148.15 billion. It would have been around five billion marks higher still if currency relationships had remained unchanged. In the parent bank, the interest surplus rose nine pct in the year, while the interest margin held roughly at 1985's 2.56 pct despite pressure on credit rates. The surplus on commission business, which had soared by a quarter in 1985, rose by 11.6 pct last year thanks almost exclusively to growth in securities commissions, Seipp said. Personnel expenditure was up 11.9 pct last year, at more than 1.5 billion marks. Fixed asset expenditure rose by 9.6 pct to more than 650 mln. As a result, the parent bank partial operating profit rose by 3.2 pct to 752 mln marks. Parent bank tax payment rose to 244 mln marks last year from 233 mln in 1985. Seipp said extraordinary earnings included a "high two-figure million" in profit from the sale of the bank's AEG AG shares to Daimler-Benz AG during the latter's majority stake purchase booked last year. The ability of the bank to write off depreciations in credit business against profits from securities trading and earnings on the sale of stakes had been utilised, as in prior years, to its full extent. Because of numerous insolvencies at home, by far the largest part of the provisions were set aside for individual write-downs from domestic business. Abroad, the circle of problem debtor countries rose last year, although the ratio of credit exposure to provisions improved further. Seipp said that because about half the group's exposure to problem nations was in dollars, the bank had swapped into dollars individual provisions hitherto held primarily in marks. "This means that no open currency positions exist any longer on the amount of the provision that is made against an actual default," he added. Despite the increase in concern over debtor nations in the last few weeks, he said, the international banking community is better armed than it was against payment problems. All banks had significantly strengthened their capital base, most European banks had made considerable provisions against bad debts while goverments and central banks were better prepared for unforseen difficulties. He described debt-equity swaps as a very interesting new approach to indebted nations' problems. There was a lot of interest in direct investment via an equity participation in Latin America, particularly from West German firms. .I 2 .C dlr 1; money-fx 1 .T BANK OF JAPAN INTERVENES IN EARLY TOKYO AFTERNOON. .W TOKYO, April 1 - The Bank of Japan intervened in the market in the early afternoon, buying dollars around 147.30 yen and continuing to buy them as high as 147.50 yen, dealers said. The Bank intervened just after the dollar started rising on buying by securities houses at around 147.05 yen, and hoped to accelerate the dollar's advance, they said. The dollar rose as high as 147.50 yen. .I 3 .C rubber 1 .T MALAYSIA CUTS GAZETTED RUBBER PRICE. .W KUALA LUMPUR, April 1 - Malaysia said it cut the gazetted price of rubber to 202-7/8 cents per kg from 213-1/2 cents in March, effective immediately. No export duty is applicable at this level, against 3/8 cent per kg last month, because the government raised the export duty threshold price to 210 cents per kg in early 1985. The cess for rubber research and replanting remained unchanged at 3.85 and 9.92 cents per kg respectively. .I 4 .C money-fx 1; interest 1; gnp 1 .T SEIPP SAYS GERMAN INTEREST RATES SHOULD FALL. .W FRANKFURT, April 1 - The Bundesbank should take further steps to reduce German interest rates to protect the mark from further appreciation and to persuade investors to bring long-term yields lower, Commerzbank AG management board chairman Walter Seipp said. But he told the bank's annual news conference this did not mean a cut in leading interest rates, rather a reduction in money market rates through bringing the allocation rates down for Bundesbank securities repurchase agreements. "Leading interest rates are not the decisive rates," he said. "The money market rates are the important ones." Seipp said the Bundesbank should move away from allocating money market liquidity at a fixed 3.8 pct as it has in recent tender allocations. An easier monetary policy would not mean a loss of credibility for the Bundesbank in its containment of monetary growth. A fall in short rates would make the public aware of the high yields in bonds and lead to a longer-term capital formation, braking the expansion of money supply. "Thus, you can have lower rates and also a normalisation of monetary growth both at the same time," he added. Seipp said there were no grounds to paint too black a picture of the German economy, since company profitability had improved over recent years and domestic oriented firms were profiting from cheaper imports because of the rise in the mark. Growth this year should be at least one pct, he said, describing the downturn in production in the first months as a false start, unrepresentative of the rest of the year. After an economic contraction in the first quarter, the economy should show an uptrend in the last three. "We don't believe that the economy has tipped over, but see it more as a 'growth dip,'" Seipp said. But Seipp also called for support for growth from fiscal policy, saying the top rate of income and corporate tax should be brought down to 49 pct. The current peak rate is 56 pct. The additional tax cuts brought forward to next January were no substitute for support for growth. Seipp added the federal government should make "further courageous steps to decrease the state's proportion of the German economy and to increase its flexibility." .I 6 .C palm-oil 1; palmkernel 1; oilseed 1; veg-oil 1 .T MALAYSIA RAISES PALM OIL EXPORT DUTIES. .W KUALA LUMPUR, April 1 - The Malaysian government said it raised the export duty on processed palm oil (ppo) to 70.90 ringgit per tonne from 64.06 in March, effective today. Export duty on crude palm oil (cpo) rose to 38.30 ringgit per tonne from 16.06 last month. The gazetted price for ppo rose to 819.6600 ringgit per tonne from 796.8604 a month earlier and that on cpo to 711.0037 ringgit from 617.8238. The export duty and gazetted price of palm kernel stood unchanged at 191.15 and 955.75 ringgit per tonne respectively. .I 11 .C dlr 1; money-fx 1 .T CURRENCY INSTABILITY WILL NOT LAST - SUMITA. .W TOKYO, April 1 - Bank of Japan Governor Satoshi Sumita said the present foreign exchange market instability will not last long as there is caution in the market regarding the rapid decline of the U.S. Unit. He told reporters the major currency nations are determined to continue their concerted intervention whenever necessary to stave off speculative dollar selling in line with their February 22 currency stability agreement in Paris. Sumita also said he did not see the recent dollar drop as anything like a free-fall. .I 15 .C earn 1 .T SKYLARK CO LTD 1986 YEAR. .W TOKYO, April 1 - Group shr 65.44 yen vs 73.30 Net 4.48 billion vs 4.19 billion Current 10.85 billion vs 9.77 billion Operating 9.65 billion vs 9.54 billion Sales 103.53 billion vs 94.39 billion NOTE - Company forecast for current year is group shr 70.05 yen, net 4.80 billion, current 11.20 billion and sales 113 billion. .I 17 .C gnp 1 .T GERMAN 2.2 PCT GROWTH AVERAGE SEEN TO 1991. .W DUESSELDORF, April 1 - The economy will grow by an average rate of 2.2 pct a year in real terms between now and the end of 1991, Westdeutsche Landesbank Girozentrale (WestLB) said in an annual report. A year ago WestLB had forecast average growth of just under three pct for 1986-1990. The 1987 report said gross national product would only expand a real 1.7 pct this year -- below previous expectations -- because of weaker exports. Growth rates will pick up later, however, producing a 2.2 pct increase on average for the five-year period. MORE .I 18 .C acq 1 .T ******SWEDEN'S BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER. .W TODAY - OFFICIAL. .I 19 .C acq 1 .T COURT BLOCKS DELTA-WESTERN AIRLINES MERGER. .W SAN FRANCISCO, April 1 - A U.S. Appeals court last night blocked the 860 mln dlr merger of Delta Airlines Inc and just hours before it was to go into effect because of a dispute over union representation. The ruling came in a lawsuit in which the Air Transport Employees union said Western's management should fulfil a promise to honour union contracts if a merger took place. The airlines argued that Western's promise could not be enforced in a takeover by a larger company. Airlines officials could not be reached for comment on the ruling, which halts the merger until arbitration on the dispute is completed. .I 21 .C acq 1 .T BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER - OFFICIAL. .W STOCKHOLM, April 1 - Boliden AB mining and metals group said it will announce a major foreign corporate takeover today involving a company with an annual turnover of two billion crowns. A Boliden spokesman told Reuters details of the announcement would be given at a news conference by chairman Rune Andersson at 1030 gmt today. He said the company involved employed 4,000 people, but declined to name the takeover price or say what field the firm operated in. Share analysts said they expected Boliden to announce it will be taking over the U.S. Allis-Chalmers Corp but company officials refused to confirm the reports ahead of the news conference. .I 22 .C money-fx 1 .T U.K. MONEY MARKET OFFERED EARLY ASSISTANCE. .W LONDON, April 1 - The Bank of England said it had invited an early round of bill offers from the discount houses after forecasting a shortage of around 1.2 billion stg in the money market today. Among the main factors affecting liquidity, bills for repurchase by the market will drain some 526 mln stg while bills maturing in official hands and the take-up of treasury bills will remove around 1.79 billion stg. A rise in note circulation will take out a further 105 mln stg. Partly offsetting these outflows, exchequer transactions will add around 1.01 billion stg and bankers' balances above target some 185 mln stg. .I 23 .C gnp 1 .T TURKEY ESTIMATES 1986 GROWTH AT EIGHT PCT. .W ANKARA, April 1 - Turkey's Gross National Product grew an estimated 8.0 pct in 1986 at fixed 1968 prices, compared with 5.1 pct in 1985, the State Statistics Institute said. Reporting full-year data, it also said Gross Domestic Product rose 8.3 pct compared with 5.1 pct in 1985. An earlier estimate from nine-month data put full-year GNP and GDP growth both at 7.9 pct. The government's GNP growth target for 1987 is five pct, the same level it had set for 1986. The institute estimated per capita GNP for 1986 at 1,116.6 dlrs, up from 1,045.3 dlrs in 1985. Officials blame the high 1986 GNP growth on a surge in domestic demand stemming partly from poorly controlled municipal expenditures in the early part of the year. Industry grew at 11.1 pct in real terms in 1986 compared with 6.6 pct in 1985 while agriculture expanded 7.4 pct compared with 2.8 pct. .I 26 .C money-fx 1 .T U.K. MONEY MARKET GIVEN 689 MLN STG EARLY HELP. .W LONDON, April 1 - The Bank of England said it had provided the money market with early assistance of 689 mln stg in response to an early round of bill offers from the discount houses. This compares with the Bank's estimate that the system would face a shortage of around 1.2 billion stg today. The central bank made outright purchases of bank bills comprising 347 mln stg in band one at 9-7/8 pct, 207 mln stg in band two at 9-13/16 pct and 135 mln stg in band three at 9-3/4 pct. .I 29 .C tin 1 .T MALAYSIAN MINERS SAY U.S. SELLING TOO MUCH TIN. .W KUALA LUMPUR, April 1 - Malaysian miners criticised the U.S. For violating an agreement with Southeast Asian producers by selling more stockpiled tin in 1986 than agreed. The U.S. General Services Administration sold 5,490 tonnes of tin in 1986, well above an agreed upon annual limit of 3,000 tonnes, the States of Malaya Chamber of Mines said. In its latest annual report, it said the U.S. Had promised to limit sales of tin in a memorandum of understanding signed with the six-member Association of Southeast Asian Nations (ASEAN) in December 1983. "The U.S. Appears to have lost sight of the U.S./ASEAN Memorandum of Understanding," the Chamber said. The Chamber estimated the U.S. Strategic stockpile held 180,444 tonnes of tin in December 1986, 137,744 tonnes in excess of of its original stockpile goal of 42,700. The main ASEAN tin producers are Malaysia, Indonesia and Thailand, which produce the bulk of the world's tin. .I 30 .C earn 1 .T GROUPE BRUXELLES LAMBERT PROFIT UP. .W BRUSSELS, April 1 - Net consolidated profit after deduction for minorities 6.52 billion francs vs 5.40 billion. Non-consolidated net profit 3.46 billion francs vs 3.05 billion. Note - Results for year 1986. Company's full name is Groupe Bruxelles Lambert SA . Proposed net final dividend on ordinary shares 70 francs vs 65 to take total net payment for year to 120 francs vs 110. .I 36 .C acq 1 .T AJINOMOTO TO BUY OUT JOINT FOOD VENTURE PARTNER. .W TOKYO, April 1 - Ajinomoto Co Inc said it will sign around end-April to buy the 50 pct of , capitalised at four billion yen, that it does not already own from its U.S. Partner . Ajinomoto will also acquire 50 pct each of CPC's two sales subsidiaries and six production units in Hong Kong, the Philippines, Singapore, Malaysia, Taiwan and Thailand, he said. The total cost of the acquisition is 340 mln dlrs, the spokesman said. .I 39 .C cocoa 1 .T GHANA COCOA PURCHASES SLOW. .W LONDON, April 1 - The Ghana Cocoa Board said it purchased 214 tonnes of cocoa in the 24th week, ended March 19, of the 1986/87 main crop season, compared with 456 tonnes the previous week and 372 tonnes in the 24th week ended March 27 of the 1985/86 season. Cumulative purchases so far this season stand at 217,449 tonnes, ahead of the 204,256 tonnes purchased by the 24th week of last season. .I 40 .C acq 1 .T U.K. MERGER CLEARANCES. .W LONDON, April 1 - The Secretary of State for Trade and Industry said he had decided not to refer the proposed acquisition by Reed International Plc of to the Monopolies and Mergers Commission. The proposed acquisition by of was also cleared. .I 41 .C ship 1; iron-steel 1 .T TAIWAN SEES SHARP DECLINE IN SHIPBREAKING. .W By Chen Chien-kuo, Reuters TAIPEI, April 1 - Taiwan's shipbreaking industry is expected to decline sharply this year despite the boom in 1986 because of keener competition from South Korea and China, the rising Taiwan dollar and U.S. Import curbs on steel products, industry sources said. Last year, Taiwanese breakers demolished a record 344 vessels totalling 3.69 million light displacement tons (ldt), up on 165 of 2.97 million ldt in 1985, Lin Chung-jung, a Taiwan Shipbreaking Industry Association (TSIA) spokesman, told Reuters. China scrapped vessels of some 1.1 mln ldt last year while South Korea demolished ships of 910,000 ldt, he said. Yao Liu, president of Chi Shun Hwa Steel Co, a leading shipbreaker and steel producer in Kaohsiung, told Reuters, "We expect to scrap fewer ships this year because of an expected decline in our steel product exports." Lin said many breakers predicted a 20 pct decline in scrapping operations this year due to falling demand from the U.S., Japan and Southeast Asia for Taiwanese steel. Taiwan agreed last year to voluntarily limit its steel product exports to the U.S. To 120,000 tonnes in the first half of 1987 from about 260,000 tonnes in the first half of 1986, a Taiwan Steel and Iron Association official said. Yao said the rising Taiwan dollar means Taiwan's steel exports are more expensive than South Korea's and China's. The Taiwan dollar has strengthened by some 16 pct against the U.S. Unit since September 1985 and some bankers and economists said it could appreciate to 32 to the U.S. Dollar by the end of the year from 34.23 today, Yao said. In comparison, the won rose by about five pct and yuan remained stable during the same period, he added. "We have lost some orders to South Korea and mainland China because foreign importers have switched their purchases," he said. Taiwan's steel exports to the U.S., Japan and Southeast Asia slipped to 148,000 tonnes in the first two months of 1987 from about 220,000 tonnes a year earlier, the Taiwan Steel and Iron Association official said. He said he expected further declines in later months but did not give figures. .I 43 .C wheat 1; grain 1 .T U.K. INTERVENTION FEED WHEAT TENDER RESULT AWAITED. .W LONDON, April 1 - Grain traders said they were still awaiting results of yesterday's U.K. Intervention feed wheat tender for the home market. The market sought to buy 340,000 tonnes, more than double the remaining 150,000 tonnes available under the current tender. However, some of the tonnage included duplicate bids for supplies in the same stores. Since the tenders started last July 861,000 tonnes of British feed wheat have been sold back to the home market. .I 44 .C acq 1; coffee 1 .T SINGAPORE'S UIC TO BUY INTO TECK HOCK COFFEE FIRM. .W SINGAPORE, April 1 - Singapore's United Industrial Corp Ltd (UIC) has agreed in principle to inject 16 mln dlrs in convertible loan stock into , a creditor bank official said. UIC is likely to take a controlling stake in the troubled international coffee trading firm, but plans are not finalised and negotiations will continue for another two weeks, he said. Teck Hock's nine creditor banks have agreed to extend the company's loan repayment period for 10 years although a percentage of the new capital injection will be used to pay off part of the debt. Teck Hock owes more than 100 mln Singapore dlrs and since last December the banks have been allowing the company to postpone loan repayments while they try to find an investor. The nine banks are Oversea-Chinese Banking Corp Ltd, United Overseas Bank Ltd, Banque Paribas, Bangkok Bank Ltd, Citibank N.A., Standard Chartered Bank Ltd, Algemene Bank Nederland NV, Banque Nationale de Paris and Chase Manhattan Bank NA. .I 45 .C interest 1 .T H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY. .W HONG KONG, April 1 - Banks in Hong Kong are likely to raise prime rates by half a percentage point to 6-1/2 pct following a one-quarter point prime rate increase by two major U.S. Banks yesterday, dealers said. They told Reuters local banks may decide on the increase at this weekend's routine meeting of the Hong Kong Association of Banks. G.C. Goh, chief dealer of the Standard Chartered Bank, said prime rate increases by Citibank and Chase Manhattan Bank to 7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit. Goh said local banks want to restore the prime to 6-1/2 pct, the level at beginning of 1987. The banks raised the prime to the current six pct from five pct on February 28 after cutting it 1-1/2 points from 6-1/2 on January 15 in response to upside pressure on the Hong Kong dollar, he said. The medium and longer term interbank rates firmed today, with three months ending at 5-1/16 to 4-7/8 pct against yesterday's five to 4-13/16 close. The overnight rate, however, fell to 3-1/2 to three pct from 4-1/2 to four because of increased liquidity for a local stock issue. .I 48 .C money-fx 1; interest 1 .T GERMAN CALL MONEY DROPS BACK AT MONTH START. .W FRANKFURT, April 1 - Call money rates fell to 3.85/95 pct from five pct yesterday in moderate trading as month end tightness disappeared and operators took positions for April. Dealers said they expected rates to remain within a 3.70 to four pct range this month. A minor tax payment period on behalf of customers mid-month, the long Easter weekend and pension payments were unlikely to tighten rates significantly. Next Wednesday, 14.9 billion marks are leaving the system on the expiry of a securities repurchase pact. But dealers said they expected the Bundesbank to fully replace the outflow with a new tender at a fixed rate of 3.80 pct. Commerzbank AG's management board chairman Walter Seipp called on the Bundesbank to reduce interest rates to protect the mark through bringing the allocation rate for securities repurchase agreements down. But dealers said the Bundesbank was unlikely to ease credit policies at the moment. There was little domestic and foreign pressure for lower rates and no signs of a change. Yesterday one or two large West German banks effectively drained the domestic money market of liquidity in order to achieve higher rates from their overnight deposits, dealers said. Bundesbank figures showed banks held an average daily 50.7 billion marks in minimum reserves at the central bank over the first 30 days of March, the exact requirement needed just one day before the end of the month. Actual holdings on Monday were 42.0 billion marks. Because rates soared to the level of the Lombard emergency funding rate yesterday, banks fell back on the loan facility to draw down a high 5.3 billion marks in an attempt to meet Bundesbank needs, the data showed. .I 49 .C acq 1 .T ****SWEDEN'S BOLIDEN AB TAKES OVER U.S. ALLIS-CHALMERS CORP FOR. .W 600 MLN CROWNS - OFFICIAL .I 50 .C acq 1 .T MITSUBISHI HEAVY, C. ITOH TO SELL TRIGUNA STAKES. .W TOKYO, April 1 - Mitsubishi Heavy Industries Ltd (MHI) and C. Itoh and Co Ltd have decided to sell their combined 65 pct stake in Indonesia's to , spokesmen for the two Japanese companies said. Triguna, set up in 1982, is owned 40 pct by MHI and 25 pct by C. Itoh and 35 pct by an Indonesian company. It makes about 10 forklift trucks and a similar number of excavators each month in technological cooperation with MHI. The spokesmen said the sale results from an expected restructuring later this year of the 50/50 Caterpillar/MHI joint venture Japanese company , formed in 1963. They said the venture will be renamed and capitalised at 23 billion yen. It will still be owned equally by MHI and Caterpillar and will be set up with the aim of centralising MHI's excavator business. .I 53 .C acq 1 .T ******SWEDEN'S BOLIDEN AB TAKES OVER MINING GEAR UNITS OF. .W ALLIS-CHALMERS CORP FOR 600 MLN CROWNS .I 54 .C sugar 1 .T SUGAR TRADERS FORECAST LIKELY EC SUGAR REBATE. .W LONDON, April 1 - London traders say the European Community is likely to award a maximum rebate of 46.80 European currency units per 100 kilos at today's tender, while traders in Paris predict a maximum award of 46.40 Ecus. Last week the EC awarded licences for 59,000 tonnes at a rebate of 45.678 Ecus. Trade views differed on the amount of sugar likely to be released today. London traders said the EC Commission will probably endeavour to release a large tonnage, and as much as 100,000 tonnes may be authorised for export under licences up to end-September. Paris traders put the likely tonnage at around 60,000. .I 57 .C acq 1 .T BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION. .W STOCKHOLM, April 1 - Swedish mining and metals group Boliden AB said it would buy the mining equipment operations of the U.S. Allis-Chalmers Corp , amounting to more than 50 pct of group sales, for 600 mln crowns. Boliden president Kjell Nilsson told a news conference the acquisition of the Allis-Chalmers unit, which he described as the world's leading producer of equipment for the mineral processing industry, would yield positive synergy effects for Boliden mining, metals and engineering operations. Nilsson said the takeover also will provide opportunities to cooperate with the mining and materials handling operations of Boliden's parent company, . He said Allis-Chalmers was selling out because it needed new cash after suffering big losses in its farm equipment operation. The deal is subject to approval by Allis-Chalmers' annual meeting, company officials said. .I 58 .C gold 1 .T PROPOSED JAPAN TAX MAY DAMPEN TOKYO GOLD TRADING. .W TOKYO, April 1 - A proposed sales tax on gold transactions could put a damper on the Tokyo market and encourage a shift of trading to Hong Kong and Singapore, senior vice president and Tokyo branch manager of Credit Suisse Paul Hofer told a press conference. "If you impose five pct on both buy and sell transactions, Tokyo participants in the gold market could be out of business," he said. The tax would create such a spread that Japanese would be unable to compete in the international market, he added. "How can the government really raise taxes if the system they impose is prohibitive of generating business?" he said. The government now imposes a 15 pct tax on physical trades exceeding 37,500 yen for gold jewellery and coins and a 2.5 yen tax per 10,000 yen on futures transactions, gold dealers said. The new five pct tax would be imposed on companies trading more than 100 mln yen a year and apply to paper gold trades, gold deposits with banks and trading of gold bars as well as that of jewellery and coins, dealers said. However, the tax would lower the rate on jewellery and coins to only five pct from the current 15 pct, they said. Hofer said in 1982 Switzerland had imposed a 5.6 pct gold turnover tax on Jan 1, 1980, but abolished it on Oct 1, 1986. A study by one of the Swiss banks showed that in early 1980, the first year of the tax, the volume for all Swiss banks fell by up to 25 pct compared with 1978 and 1979, Hofer said. Transactions of paper gold also fell up to 75 pct of the volume prior to imposition of the tax, he said. While gold transactions in Switzerland decreased, the volume of trades outside the country, particularly in London and Luxembourg, increased between 10-25 pct, Hofer said. Japan is a major importer of gold, buying a yearly average just under 200 tonnes, gold dealers said. Last year Japan imported about 600 tonnes of gold, but the government had bought about 300 tonnes for minting coins to commemorate the 60th year of Emperor Hirohito's reign, dealers said. Gold trading in Tokyo is dominated mainly by Japanese trading companies, while Credit Suisse is the major foreign participant. Daily turnover in the Tokyo spot market ranges between one and 10 tonnes with the average around three tonnes, while futures turnover amounts to about four tonnes, gold dealers said. "All of us are concerned daily with the fact that the Tokyo market is growing, that Japan is becoming one of the three major financial markets in the world ... And in my personal opinion I think it would be a very big mistake to put a damper on this positive growth or developments by imposing such a tax," Hofer said. "I don't think it fits the philosophy of an internationalising market," he added. Officials of several major Japanese trading houses, attending the press conference, said they supported Credit Suisse's call for the government not to impose the gold tax. .I 59 .C interest 1 .T INDIAN RATE CUTS TO SPARK INDUSTRY, AGRICULTURE. .W NEW DELHI, April 1 - The Indian Finance Ministry's announcement in Parliament yesterday, changing the nation's interest rate structure, will benefit industry and agriculture by providing loans at lower interest, bankers and brokers said. The changes, effective today, included reducing commercial bank lending rates that have ranged between 15 pct and 17.5 pct by one percentage point. New rates, which affect both Indian and foreign banks, also include a one percentage point gain, to an annual 10 pct, on deposits of two years or more but less than five. Bank deposits of five years or more carrying 11 pct interest have been abolished. Bankers said the interest rate modifications reflect the government's concern to reduce the costs of borrowing and help improve world competitiveness of Indian goods. There is likely to be a shift to short-term bank deposits by long-term depositors, bankers predicted. This will create the flexibility to draw and re-invest funds in either equity shares or short-term bank deposits, they said. A merchant banker also said reduced manufacturing costs due to lower lending rates are likely to boost the share market. Tata Steel, a trend setter on the Bombay Stock Exchange, opened today higher at 1,040 rupees against yesterday's closing of 1,012.50 rupees. A stockbroker said investors may be less enthusiastic now to buy convertible and non-convertible debentures because the Finance Ministry has reduced the annual interest rate to 12.5 pct and 14 pct respectively from 13.5 and 15 pct respectively. "But overall debenture prospects remain bright because the rates of interest on them will still be higher than what banks pay for deposits of similar maturity," a merchant banker said. .I 60 .C money-fx 1 .T U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP. .W LONDON, April 1 - The Bank of England said it had revised its estimate of the shortage in the money market up to 1.3 billion stg from 1.2 billion before taking account of its early operations. The Bank has provided 689 mln stg assistance so far today. .I 61 .C acq 1 .T INTERNATIO-MUELLER ACQUIRES CANADIAN COMPANY. .W ROTTERDAM, April 1- Internatio-Mueller NV said it will acquire of Canada but declined to comment on the amount of the payment, which will be in cash. Promac, which produces measurement and regulating equipment, has a work force of 50 and had 1986 turnover of five mln guilders, an Internatio spokesman said. He said the takeover fits into the company's drive for expansion in the U.S and Canada and further acquisitions are possible. Promac Controls will be part of Internatio's electrotechnical sector. .I 62 .C wheat 1; grain 1 .T U.K. INTERVENTION FEED WHEAT SOLD TO HOME MARKET. .W LONDON, April 1 - A total of 126,031 tonnes of U.K. Intervention feed wheat was sold to the home market at this week's tender, provisional results show, the Home Grown Cereals Authority (HGCA), said. Actual prices were not reported but the wheat was sold at, or above, the March intervention price of 119.17 stg per tonne. Grain traders sought to buy about 340,000 tonnes. .I 64 .C oilseed 1; coconut 1 .T SRI LANKA TO UPGRADE QUALITY OF COCONUT PRODUCTS. .W COLOMBO, April 1 - The Sri Lankan cabinet approved recommendations to upgrade the quality of coconut fibre products, the government said. It said the recommendations also suggested that encouragement be given for the manufacture of value-added products from coconut fibre and a market development programme be launched for traditional and value-added products. It also suggested the setting up of a marketing mission on coconut fibre to be sent this month to principal target markets. Sri Lanka is the world's second largest exporter of dessicated coconut after the Philippines. .I 65 .C acq 1 .T HOOGOVENS CONCLUDES TAKEOVER OF PHILIPS CIREX UNIT. .W IJMUIDEN, Netherlands, April 1 - Dutch steel concern said it had reached agreement with NV Philips Gloeielampenfabrieken on its takeover of Cirex, a specialised Philips precision wax moulding unit. Neither party would reveal financial details of the deal, initially announced in October. Hoogovens said Cirex turnover had grown in recent years to 30 mln guilders in 1986 and it expected further expansion. The unit delivers mainly to the car industry. Hoogovens said the acquisition would strengthen its position as a supplier to industry of high-value metal products. .I 67 .C gold 1; silver 1 .T PRECIOUS METALS CLIMATE IMPROVING, SAYS MONTAGU. .W LONDON, April 1 - The climate for precious metals is improving with prices benefiting from renewed inflation fears and the switching of funds from dollar and stock markets, brokers Samuel Montagu and Co Ltd said. Silver prices in March gained some 15 pct in dlr terms due to a weak dollar and silver is felt to be fairly cheap relative to gold, Montagu said in its monthly silver newsletter. In March the gold/silver ratio narrowed from 74 to less than 67. The supply/demand position has improved in the past year, and despite a silver market surplus, the quantity of silver is modest enough to be absorbed by investors, it added. The report said the firmness in oil prices was likely to continue in the short term. A period of consolidation might be necessary before prices attempted to move significantly higher,it said, but so long as the dollar remains under pressure then the outlook for silver was positive. However silver was less likely to continue to outpace the other metals by such a margin, Montagu said. .I 68 .C oilseed 1; veg-oil 1; ship 1; grain 1; meal-feed 1 .T ROTTERDAM GRAIN HANDLERS STAGE LIGHTNING STRIKES. .W ROTTERDAM, April 1 - Lightning strikes hit the grain sector of the port of Rotterdam today after employers turned down union demands for shorter working hours in a new labour agreement, transport union FNV spokesman Bert Duim said. Around 140 grain handlers stopped work, 125 of them at the two Europoort locations of Graan Elevator Mij (GEM), which handles about 95 pct of grain, oilseeds and derivatives passing through Rotterdam. GEM managing director Pieter van der Vorm said the facilities were 40 pct operational. The employers had invited the unions for talks later today, but details of the labour agreement would not be on the agenda, Van der Vorm said. It is barely one month since the end of an eight-week campaign of lightning strikes against redundancies in Rotterdam's general cargo sector, which stevedoring companies said cost them millions of guilders. .I 69 .C acq 1 .T BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION. .W STOCKHOLM, April 1 - Swedish mining and metals group Boliden AB said it would buy the mining equipment operations of the U.S. Allis-Chalmers Corp, amounting to more than 50 pct of group sales, for 600 mln crowns. Boliden president Kjell Nilsson told a news conference the acquisition of the Allis-Chalmers unit, which he described as the world's leading producer of equipment for the mineral processing industry, would yield positive synergy effects for Boliden mining, metals and engineering operations. Nilsson said the takeover will provide opportunities to cooperate with the mining and materials handling operations of Boliden's parent company, Trelleborg AB. He said Allis-Chalmers was selling out because it needed new cash after suffering big losses in its farm equipment operation. The deal is subject to approval by Allis-Chalmers' annual meeting, company officials said. .I 71 .C cocoa 1 .T MALAYSIA DECLINES TO STATE POSITION ON COCOA PACT. .W By Rajan Moses, Reuters KUALA LUMPUR, April 1 - Government officials in Malaysia, a major cocoa producer, have declined to say whether it will join the International Cocoa Agreement (ICCA) for which buffer stock rules were agreed in London last week. Ministry of Primary Industries officials said in January the cabinet would decide on Malaysia's participation, but so far a decision has not been announced. The government is said to be in favour of joining the pact, but local cocoa growers and traders told Reuters they are against the idea because certain provisions in it may be to their disadvantage. Malaysia is the world's fourth largest cocoa producer. The government feels that the pact, through its buffer stock mechanism, can help stabilise prices in a market which is labouring under surpluses, officials said. But growers and traders are concerned Malaysia's participation in the pact will require them to pay a levy for exports of cocoa to non-member countries of the ICCA. They estimate the levy at around 100 ringgit a tonne at current prices and said they are not prepared to accept it because a big portion of Malaysia's cocoa exports, officially estimated at 112,000 tonnes in 1986, goes to non-members. Most growers and traders added they are also against a buffer stock measure under the agreement which requires withholding of cocoa stocks when prices slump. Malaysia, which produced 117,000 tonnes of cocoa last year, might be forced to withhold up to 70,000 tonnes worth some 30 mln ringgit under such a measure in the long-term, and this might affect their economic viability, they said. "The cost of maintaining such a stock can be high and it will be a real messy business for the government and the trade if it ever occurs," an industry source said. The growers and traders also said that under new buffer stock rules Malaysia can continue to benefit even if it is not a member of the pact, as the buffer stock manager is also allowed to buy from non-members for the stockpile. Under the new rules purchases from non-members, such as Malaysia, will be limited to 15 pct of the total stock. Malaysia has come under pressure from some producers to join the pact soon, officials said, but they noted that it need not rush to do so as there are provisions which allow countries to join the agreement even at a later date. .I 72 .C dlr 1; money-fx 1 .T CURRENCY INSTABILITY WILL NOT LAST - SUMITA. .W TOKYO, April 1 - Bank of Japan Governor Satoshi Sumita said the present foreign exchange market instability will not last long as there is caution in the market regarding the rapid decline of the U.S. Unit. He told reporters the major currency nations are determined to continue their concerted intervention whenever necessary to stave off speculative dollar selling in line with their February 22 currency stability agreement in Paris. Sumita also said he did not see the recent dollar drop as anything like a free-fall. .I 75 .C acq 1 .T BOND CORP COMPLETES CONSOLIDATED PRESS PURCHASE. .W PERTH, April 1 - Bond Corp Holdings Ltd said it has completed the 1.05 billion dlr purchase of the electronic media interests of unlisted . The new company now holds the television, broadcasting and associated businesses previously held by Kerry Packer's Consolidated, Bond Corp said in a statement. Packer, who made the sale in January, will be a director of Bond Media. As previously reported, Bond Media will be publicly floated with a rights issue to Bond Corp shareholders. Bond Media will be 50 pct owned by Bond Corp and is expected to be listed by the end of May, it said. .I 76 .C interest 1 .T H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY. .W HONG KONG, April 1 - Banks in Hong Kong are likely to raise prime rates by half a percentage point to 6-1/2 pct following a one-quarter point prime rate increase by two major U.S. Banks yesterday, dealers said. They told Reuters local banks may decide on the increase at this weekend's routine meeting of the Hong Kong Association of Banks. G.C. Goh, chief dealer of the Standard Chartered Bank, said prime rate increases by Citibank and Chase Manhattan Bank to 7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit. Goh said local banks want to restore the prime to 6-1/2 pct, the level at beginning of 1987. The banks raised the prime to the current six pct from five pct on February 28 after cutting it 1-1/2 points from 6-1/2 on January 15 in response to upside pressure on the Hong Kong dollar, he said. The medium and longer term interbank rates firmed today, with three months ending at 5-1/16 to 4-7/8 pct against yesterday's five to 4-13/16 close. The overnight rate, however, fell to 3-1/2 to three pct from 4-1/2 to four because of increased liquidity for a local stock issue. .I 78 .C earn 1 .T GUARDIAN ROYAL PROFIT UP SHARPLY AT 143.8 MLN STG. .W LONDON, April 1 - Year to Dec 31 Shr profit 63.6p vs loss 8.7p Final div 24p making 34p vs total 28.75p Pretax profit 143.8 mln stg vs 3.5 mln General underwriting loss on short-term business 79.8 vs 154.3 NOTE - Company's full name is Guardian Royal Assuance Plc Underwriting profit on long-term insurance business 21.6 mln stg vs 19.1 mln Loss on discontinued international professional indemnity business nil vs 40.6 mln stg Investment income 213.8 mln stg vs 193.6 mln Less interest payable 11.8 mln stg vs 14.3 mln Tax 38.8 mln stg vs 15.0 mln Minorities 3.3 mln stg vs 2.3 mln Extraordinary item - contingency claims provisions on discontinued international business nil vs 55.0 mln stg .I 80 .C gold 1; silver 1 .T PRECIOUS METALS CLIMATE IMPROVING, SAYS MONTAGU. .W LONDON, April 1 - The climate for precious metals is improving with prices benefiting from renewed inflation fears and the switching of funds from dollar and stock markets, brokers Samuel Montagu and Co Ltd said. Silver prices in March gained some 15 pct in dlr terms due to a weak dollar and silver is felt to be fairly cheap relative to gold, Montagu said in its monthly silver newsletter. In March the gold/silver ratio narrowed from 74 to less than 67. The supply/demand position has improved in the past year, and despite a silver market surplus, the quantity of silver is modest enough to be absorbed by investors, it added. The report said the firmness in oil prices was likely to continue in the short term. A period of consolidation might be necessary before prices attempted to move significantly higher,it said, but so long as the dollar remains under pressure then the outlook for silver was positive. However silver was less likely to continue to outpace the other metals by such a margin, Montagu said. .I 82 .C acq 1 .T SWEDISH MATCH SELLS PORTUGUESE UNIT. .W STOCKHOLM, April 1 - Swedish Match AB said it was selling one of its Portuguese subsidiaries, (SIAF), to the Porto-based for an undisclosed price. SIAF, a subsidiary of Swedish Match since 1946, had a turnover last year of 62 mln crowns, the Swedish group said in a statement. .I 83 .C earn 1 .T SUN LIFE ASSURANCE profit up. .W LONDON, April 1 - Year 1986 DIV 18.1p making 28.5p vs 23.74p PROFIT AFTER TAX 17.4 mln stg vs 14.1 mln TAX 0.7 mln stg vs 0.2 mln Bonus distribution rose to new record level of 125.1 mln stg vs 114.9 mln in 1985 Full name of company is Sun Life Assurance Society Plc . .I 84 .C earn 1 .T ******SUN ALLIANCE PRETAX PROFIT 180.4 MLN STG VS 37.7 MLN FOR. .W 1986 .I 86 .C interest 1 .T LOWER INTEREST RATES SEEN FOLLOWING IRISH BUDGET. .W By Paul Majendie, Reuters DUBLIN, April 1 - Financial markets welcomed public spending cuts announced by Ireland's new minority government in its budget, saying the move would lead to lower interest rates. Finance Minister Ray MacSharry, making cuts across the board, reduced the Exchequer Borrowing Requirement to 1.85 billion punts, 10.7 pct of GNP, compared with 2.15 billion punts or 13 pct of GNP last year. Allied Irish Banks foreign exchange dealer John Kearney commented: "I would see interest rates coming down by two to 2.5 pct in the next three months." .I 87 .C earn 1 .T SUN ALLIANCE reports sharp profit rise. .W LONDON, April 1 - Year 1986 Shr 64.2p vs 14p Div 16p making 23.5p vs 17.5p Pretax profit 180.4 mln stg vs 37.7 mln Net after tax 137.1 mln vs 34.9 mln Minorities 10.5 mln vs 7.2 mln General premium income 1.99 billion stg vs 1.78 billion Long term premium income 704.5 mln vs 576.6 mln General insurance underwritng loss 78.3 mln vs 183.4 mln Long term insurance profits 27.3 mln vs 20.9 mln Investment and other income 231.4 mln vs 200.2 mln. Company's full name is Sun Alliance and London Insurance Plc . .I 88 .C acq 1 .T BOLIDEN SAYS IT NOW LEADER IN MINING GEAR. .W By Per Isaksson, Reuters STOCKHOLM, April 1 - Swedish mining and metals group Boliden AB said the takeover of the U.S. Allis-Chalmers Corp's mining machinery division made it the world's leading maker of such equipment. President Kjell Nilsson, announcing the 600 mln crown deal, told a news conference Boliden would now become a truly international concern with operations in Brazil, Chile and other big minerals-producing nations. He said the Allis-Chalmers' division, accounting for some 50 pct of the U.S. Group's sales, would fit in well into Boliden. .I 89 .C interest 1 .T U.S. CREDIT MARKET OUTLOOK - PRIME RATE. .W NEW YORK, April 1 - The prospect that other banks will follow industry leaders Citibank and Chase Manhattan in raising their prime rate is likely to cast a pall over the credit markets today, economists said. Bond prices had been making a smart recovery from two days of heavy selling when Citibank surprised the market by announcing a quarter-point increase in its prime rate to 7-3/4 pct. Chase Manhattan quickly followed. Prices quickly fell by a full point, even though the dollar - the market's overriding concern of late - rose sharply on the news. Citibank cited the higher cost of money, especially in the Euromarket, as the reason for raising its prime rate. Part of this rise in market rates has been caused by fears of a tighter Federal Reserve policy to defend the dollar, but economists said it is too early to tell whether the Fed, whose policy-making federal open market committee, FOMC, meets this week, is already tightening its grip on credit. "The Fed seems to have been a bit slow in meeting the banking system's reserve needs this statement period, but I wouldn't conclude anything until I've seen the Fed data," said Jeffrey Leeds of Chemical Bank. REUTER^M .I 90 .C grain 1 .T CEREALS MCAS TO BE UNCHANGED NEXT WEEK. .W BRUSSELS, April 1 - Monetary compensatory amounts, MCA's, will be unchanged for the week starting April 6, EC Commission officials said. Cereals MCA's are plus 2.4 points for West Germany and the Netherlands, minus two points for Denmark, minus eight points for France, minus nine for Ireland, minus 5.7 for Italy, minus 25.7 for Britain, minus 44.1 for Greece and minus 10.5 for Spain. .I 91 .C acq 1 .T U.S. SUPREME COURT ALLOWS DELTA-WESTERN MERGER. .W WASHINGTON, April 1 - U.S. Supreme Court Justice Sandra Day O'Connor early this morning lifted an Appeals Court injunction blocking the planned merger of Delta Airlines Inc and Western Airlines , the Court said. O'Connor's action came hours after a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco had blocked the merger until a dispute over union representation had been settled by arbitration. A Supreme Court spokesman said O'Connor granted a stay of the injuction, allowing the merger, worth nearly 860 mln dlrs, to go through as planned later today. The Supreme Court spokesman provided no other details. Each of the nine Supreme Court justices has jurisdiction over a particular regional Appellate circuit and has the power to provisionally overturn its rulings without comment. The Appeals Court ruling surprised officials of Atlanta-based Delta, which had been preparing for the merger for months and had already painted Delta logos on airplanes belonging to Western, which has headquartera in Los Angeles. "Our plans were to finalize the merger at midnight tonight," Delta spokesman Bill Berry told the Atlanta Constitution late last night. "There was really very little that remained to be done." The ruling in San Francisco came in a lawsuit that had been filed in a Los Angeles federal court in which the Air Transport Employees union sought to force Western's management to fulfill a promise that it would honor union contracts if a merger took place. The airlines argued that Western's promise could not be enforced in a takeover by a larger company. After learning of the appeals court ruling, Delta officials last night spread the word by telephone that Western employees should report for work today in their old uniforms, not in new Delta outfits. Delta announced last September that it was purchasing Western. The merger took place in December, and Western has been operated as a Delta subsidiary since then. The Western name was to have disappeared at midnight last night. At issue is whether the Western unions would continue to represent Western employees after the integration of the two airlines. While all but eight pct of Western's 11,000 employees are unionized, only Delta's pilots are union members. Delta had maintained that the three unions having contracts with Western -- The Association of Flight Attendants and the Teamsters, as well as the Air Transport Employees -- would be "extinguished" after today. .I 92 .C money-fx 1 .T U.K. MONEY MARKET DEFICIT REVISED DOWNWARDS. .W LONDON, April 1 - The Bank of England said it has revised its estimate of today's shortfall to around 1.25 billion stg from 1.3 billion before taking account of 775 mln stg morning assistance. .I 94 .C coffee 1 .T ICO COFFEE PRODUCERS TO DISCUSS MARKET SITUATION. .W LONDON, April 1 - International Coffee Organization, ICO, producers will meet at 1500 GMT (0900 est) for a general discussion of the market situation, producer spokesman Lindenberg Sette said. The Brazilian delegate said several producers requested the meeting but Brazil was not among them. The ICO executive board's regular session this week has so far been confined to routine matters, with no attempt by producers or consumers to revive export quota negotiations, delegates said. Talks to restore quotas collapsed early last month when producers and consumers failed to resolve differences on how quotas should be allocated. Producer delegates said there was no sense of urgency among producers to reopen quota talks with consumers, with most countries now prepared to wait for the ICO's annual September council session to restart negotiations. Members of the Inter-African Coffee Organization called for today's producer meeting to exchange views on the market situation, the producer delegates said. The lack of a new debate on export quotas here this week was cited as the reason for renewed weakness in coffee prices in London and New York futures, traders said. Near May in London hit a five-year low this morning at 1,220 stg, about 50 stg below last night's close, they said. The executive board session looks set to end today, following a final session at 1600 GMT (1000 est) when a consultancy report of the operation of the ICO will be presented to producers and consumers, delegates added. .I 95 .C acq 1 .T CITADEL SETTLES WITH GREAT WESTERN . .W GLENDALE, Calif., April 1 - Citadel Holding Corp said it has settled its litigation with Great Western Financial corp. The company said under the terms, Great Western has agreed not to acquire or seek to acquire any voting securities of Citadel or propose a merger with Citadel for five years, and Citadel has paid Great Western six mln dlrs. Citadel said it is continuing to pursue its claims against Salomon Inc , which represented it in connection with the disputed proposed merger with Great Western that was the subject of the litigation. .I 99 .C acq 1 .T ******SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE. .W VENTURE FOR CAESARS BID .I 100 .C acq 1 .T BP STARTS BID FOR STANDARD OIL SHARES. .W NEW YORK, April 1 - British Petroleum Co PLC said it has started its previously announced 7.4 billion dlr offer to purchase the 45 pct interest in Standard Oil Co that it does not already own for 70 dlrs per share. In a newspaper advertisement, the company said the offer, which is not conditioned on receipt of any minimum number of shares, and associated withdrawal rights will expire April 28 unless extended. BP said it is asking Standard Oil for the use of its shareholder list in disseminating the offer, on which the Standard board has not yet taken a position. .I 101 .C acq 1 .T VISUAL TECHNOLOGY CONTROL CHANGES. .W LOWELL, Mass., April 1 - Visual Technology Inc said a group led by has acquired majority ownership of Visual for 9,250,000 dlrs in equity financing. The company said Hambrecht and Quist president William R. Hambrecht and three other Hambrecht and Quist representatives have been named to the Visual board, with Robert M. Morrill, managing partner of the Boston office of Hambrecht's Hambrecht and Quist Venture Partners unit named chairman. Clifford G. Zimmer Jr. remains president and chief executive officer. Visual also said about nine mln dlrs of its debt has been converted to equity. .I 104 .C acq 1 .T ******CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340. .W MLN DLRS TO AJINOMOTO .I 105 .C earn 1 .T CAREPLUS INC 4TH QTR NET. .W MIAMI, April 1 - Shr loss nil vs profit nil Net loss 17,000 vs profit 31,000 Revs 5,429,000 up 27 pct Year Shr profit four cts vs profit five cts Net profit 523,000 vs profit 421,000 Revs 18.3 mln vs 11.6 mln Avg shrs 15.2 mln vs 8,941,000 NOTE: Year net includes tax credits of 131,000 dlrs vs 194,000 dlrs. 1986 net both periods includes charge 264,000 dlrs from settlement of overtime wage dispute and addition to provision for uncollectible accounts. .I 106 .C earn 1 .T JOHN ADAMS LIFE CORP 4TH QTR LOSS. .W LOS ANGELES, April 1 - Oper shr loss 24 cts vs profit 24 cts Oper net loss 716,000 vs profit 729,000 Revs 3,673,000 vs 7,826,000 Avg shrs 2,930,000 vs 2,930,000 Year Oper shr profit nil vs profit 1.31 dlrs Oper net profit 10,000 vs profit 3,200,000 Revs 12.9 mln vs 26.3 mln Avg shrs 2,930,000 vs 2,454,521 NOTE: Net excludes realized investment gains of 2,000 dlrs vs 13,000 dlrs quarter and 104,000 dlrs vs 6,000 dlrs year. 1985 net both periods excludes 57,000 dlr extraordinary gain. .I 107 .C earn 1 .T TEMPO ENTERPRISES INC YEAR NET. .W TULSA, April 1 - Shr 40 cts vs 36 cts Net 2,309,000 vs 2,076,000 Revs 28.2 mln vs 30.4 mln .I 108 .C heat 1; gas 1 .T SWEDEN RAISES FUEL TAXES TO FUND DEFENCE SPENDING. .W STOCKHOLM, April 1 - Sweden announced tax increases on petrol and heating oil from July 1, 1987 to help finance a 1.7 pct rise in defence spending over the next five years. A Finance Ministry statement said the increase should boost the price of petrol by 0.13 crowns to an average of 4.21 crowns per litre while light-grade heating oil would go up by 30 crowns per cubic metre to an average of 1,665 crowns. It said oil companies should absorb part of the tax rise internally and not pass it on to consumers as compensation for a reduction in the stocks that the industry is required to keep for Sweden's national petroleum reserve. .I 110 .C gnp 1; coffee 1; bop 1 .T KENYAN MINISTER FORECASTS ECONOMIC EXPANSION. .W NAIROBI, April 1 - Kenya's economy will continue to expand this year and the government will do more to encourage investment by foreign firms and the local private sector, Planning Minister Robert Ouko said. He told a news conference that the government would soon create a special bureau to expedite processing of investment applications by local and foreign investors. Praising the role of multinational companies and local entrepreneurs in Kenya's economy, the minister promised to maintain a close working contact with the private sector. The economy grew by 5.3 pct last year, up from 4.1 pct in 1985, Ouko said. This was owing to high prices for the country's coffee exports, low oil prices, low inflation and rising real incomes, he added. "Despite rising petroleum prices and falling coffee prices, Kenya's economy is still expected to improve in 1987," the planning minister said. "High aggregate demand arising from low inflation, trade liberalisation and disciplined financial management are expected to increase output in the manufacturing sector," he said. Agriculture would expand significantly if favourable weather continued and farmers responded to producer price rises announced in February, the minister added. Kenyan farmers are anxiously awaiting the arrival of the long rainy season, which is due to start about now. Ouko said the production of Kenya's main cash crops increased during the second half of last year. Coffee deliveries to the state-run Coffee Board of Kenya rose 17 pct and tea deliveries rose four pct during the period, he said. Ouko paid tribute to the private sector for its contribution to the economy and promised to improve government cooperation with businessmen by maintaining regular contact with them. "I wish to pay tribute to the private sector for its contribution to the economy in 1986 and challenge it to maintain the same spirit this year ... The manufacturing sector grew by an estimated 5.8 pct in 1986, in line with the same period the previous year," he said. Ouko said the "one stop" bureau was intended to stimulate investment and cut the time and bureacracy currently involved in processing applications. The planning minister presented a review of the Kenyan economy during the second half of 1986 which showed inflation falling to 4.3 pct from 10.2 a year earlier. This was owing to higher agricultural production and the Kenyan shilling's relative strength against other major currencies, the report said. The average exchange rate was 16.23 shillings per U.S. Dlr last year, a fall of only 1.2 pct from 16.432 in 1985. The half yearly report said exports increased about 30 pct in July-December 1986, while imports rose by only six pct during the period. This gave Kenya an overall balance of payments surplus of 780 mln Kenya shillings (48 mln dlrs) during the period, compared with a 1.4 billion shilling (87 mln dlr) deficit in the second half of 1985, it said. .I 111 .C earn 1 .T PEOPLES BAN CORP SEES 1ST QUARTER NET UP. .W SEATTLE, April 1 - Peoples Ban Corp said it expects to report first quarter earnings of over six mln dlrs, including a gain of 1,600,000 dlrs from the settlement of a dispute with the Internal Revenue Service and the sale of four banking offices in Vancouver, Wash. The company said it expects to report "normal" earnings for the rest ofd the year of 4,500,000 to five mln dlrs per quarter. Peoples earned 105,000 dlrs in last year's first quarter and in all of 1986 lost 1,768,000 dlrs. .I 112 .C earn 1 .T MAXXAM GROUP INC 4TH QTR LOSS. .W NEW YORK, April 1 - Shr loss 1.61 dlrs vs loss 47 cts Net loss 19.2 mln vs loss 5,716,000 Revs 46.4 mln vs 11.0 mln Year Shr loss 2.01 dlrs vs loss 29 cts Net loss 24.5 mln vs loss 3,548,000 Revs 150.2 mln vs 24.4 mln NOTE: 1985 net includes tax credits of 7,336,000 dlrs in quarter and 10.2 mln dlrs in year. Results include 64.7 pct stake in Pacific Lumber Co from December 1985 through February 1987 and 100 pct thereafter. .I 113 .C oilseed 1; ship 1; wheat 1; grain 1; barley 1; corn 1; rapeseed 1 .T FRENCH CEREAL EXPORTS THROUGH ROUEN UP IN MARCH. .W PARIS, April 1 - French cereals exports through Rouen port rose to 751,563 tonnes between March 1 and March 25 from 603,413 tonnes in the same 1986 period, freight sources said. The Soviet Union took 263,051 tonnes of wheat and barley, Saudi Arabia 90,944 tonnes barley, China 87,259 wheat, Algeria 64,896 wheat, Bangladesh 30,000 wheat, Morocco 27,500 maize, Greece 26,700 wheat and barley, Spain 25,124 wheat, Poland 24,683 wheat, Brazil 24,082 wheat, Italy 21,659 wheat, Cyprus 20,700 wheat and maize, Israel 16,500 maize and the U.K. 8,797 tonnes wheat. Six ships are loading 120,000 tonnes of wheat, the sources said. They include 30,000 tonnes for China, 31,000 for the Soviet Union, 25,000 for Turkey, and 35,000 for Italy. Another ship is loading 17,000 tonnes of colza for the Soviet Union. Another 12 ships should arrive to load 344,000 tonnes of cereals by the end of the week. Six are to load 186,000 tonnes of wheat for the Soviet Union. Two will load 60,000 tonnes of barley for Saudi Arabia, one 28,000 tonnes of wheat for China, two 25,000 tonnes of wheat each for Algeria and Turkey and one 20,000 tonnes of wheat for Italy. Another is expected to load 20,000 tonnes of colza for the Soviet Union. Flour exports through Rouen rose to 23,457 tonnes in the 25 day period from 5,500 in the equivalent 1986 period, the sources said. Sudan took 19,327 tonnes and west coast Africa 4,130. Four ships are currently loading 32,000 tonnes, including 24,000 for Egypt, 6,000 for Tanzania and 2,000 for Mauritania. A ship is expected later this week to load 12,000 tonnes for China. .I 114 .C veg-oil 1; wheat 1; grain 1 .T FAO APPROVES EMERGENCY FOOD AID FOR ETHIOPIA. .W ROME, April 1 - The United Nations Food and Agriculture Organization, FAO, said it approved emergency food aid worth more than 14.3 mln dlrs for drought victims in Ethiopia. The aid will include 30,000 tonnes of wheat and 1,200 tonnes of vegetable oil for farmers in the Wollo and Illubabor regions. FAO said it has also approved more than 1.4 mln dlrs of food aid for 8,000 families in Sri Lanka. In addition, 583,225 dlrs of aid will be made available to Malawi to feed 96,700 people displaced from Mozambique and a further 340,200 dlrs for cyclone victims in Vanuatu in the South Pacific. .I 116 .C acq 1 .T SOSNOFF ENDS PRATT /SOUTHMARK DEAL. .W NEW YORK, April 1 - Investor Martin T. Sosnoff said Southmark Corp and affiliate Pratt Hotels Corp have ended talks with his MTS Acquisition Corp on a possible joint venture for the acquisition of Caesars World Inc. Sosnoff said the talks had not been actively pursued since they were announced March 20, but it had been agreed that unless the discussions were formally terminated, Pratt and Southmark would not initiate a competing tender offer for Caesars World or take any other action that would hamper Sosnoff's current offer to acquire all Caesars shares he does not now own for 28 dlrs each. Sosnoff said his 28 dlr per share bid for Caesars, which is scheduled to expire May 15, still stands, and he remains receptive to negotiating a transaction to buy Caesars on friendly terms. Pratt recently made an apparently unsuccessful bid to acquire control of Resorts International Inc , seeming to lose out to Donald Trump. .I 119 .C acq 1 .T CPC INTERNATIONAL TO SELL ASIAN STAKES. .W ENGLEWOOD CLIFFS, N.J., April 1 - CPC International Inc said said it has agreed in principle to sell interests in its grocery products operations in Hong Kong, Malaysia, the Philippines, Singapore, Taiwan and Thailand to of Japan for 340 mln dlrs. The company said the move will reduce Asian overhead and a substantial part of the proceeds will be used to reduce debt. It said as part of the agreement, its current direct investment in its existing non-consolidated joint venture with Ajinomoto will be converted into a cooperative arrangement for the long-term utilization of technology and trademarks. The company said the change in the Japanese arrangement will give Ajinomoto full equity ownership while leaving CPC a continuing earnings stream and cash flow. The transactions are subject to definitive agreements and government approvals. CPC said not included in the 340 mln dlr consideration are proceeds from the sale of some smaller Asian investments, including a 51 pct equity interest in an oat-based food venture to an Australian partner. The company said the actions being taken under its restructuring program, including the sale of its European corn wet milling business and other assets, overhead reductions and other expense items and the Asian transactions, will have a one-time positive effect on 1987 earnings. CPC said "Although the extent cannot yet be determined, the company expects that 1987 earnings per share will increase by substantially more than the previously estimated 20 pct increase over 1986." In 1986 CPC earned 2.30 dlrs per share. .I 120 .C acq 1 .T ENERGY DEVELOPMENT COMPLETES MAY BUY. .W LOS ANGELES, April 1 - Energy Development Partners Ltd said it has completed the acquisition of May Energy Partners Ltd for 1,817,697 depositary units following approval yesterday by May Energy unitholders. Energy Development said May Petroleum Inc , general partner of May Energy, will distribute about 35 Energy Development units for each 100 May Energy Partners units to holders of 100 May Energy Partnners units or more and cash to others. Energy Development said the transaction increases its units outstanding to 12.6 mln and raises total proved reserves as of the end of 1986 27 pct. Angeles Corp is general partner of Energy Development. .I 121 .C sugar 1 .T U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES. .W LONDON, April 1 - A total 102,350 tonnes of current series white sugar received export rebates of a maximum 46.864 European Currency Units (Ecus) per 100 kilos at today's European Community (EC) tender, the U.K. Intervention Board said. Out of this, traders in France received 31,000 tonnes, in West Germany 21,000, in Belgium 19,050, in the U.K. 15,800, in Denmark 8,500, in the Netherlands 6,000 and in Spain 1,000 tonnes, it added. Earlier today, London traders had expected the subsidy for the current season whites campaign for licences to end-Sep to be around 46.80 Ecus per 100 kilos while French traders had put the rebate at around 46.40 Ecus. Traders here had also forecast today's total authorised sugar tonnage export awards up to 100,000 tonnes versus 59,000 last week when the restitution was 45.678 Ecus. Total export authorisations for the 1985/86 campaign (42 weeks) now stand at 2,076,620 tonnes. .I 122 .C cpi 1 .T TURKISH INFLATION INCREASES IN MARCH. .W ANKARA, April 1 - Inflation in Turkey was 3.7 pct in March compared with 1.7 pct in February and 1.3 pct in March 1986, the State Statistics Institute said. The annual rate rose to 34.7 pct in March compared with 31.7 pct in February and 34.2 pct in March 1986. The government's target is to reduce inflation this year to an annual 20 pct. The consumer price index, base 1978/79, was 1,957.3 compared with 1,886.8 in February and 1,452.7 in March, 1986. .I 123 .C acq 1 .T SCHERING-PLOUGH MULLS DR. SCHOLL'S SALE. .W MADISON, N.J., April 1 - Schering-Plough corp said it is considering the sale of its Dr. Scholl's businesses in Europe, Latin America and the Far East, which had sales of about 150 mln dlrs in 1986. The company said the transaction is not expected to have a material impact on earnings. It said it has engaged Merrill Lynch and Co Inc to assist in the sale process. Schering said it will retain Dr. Scholl's businesses in the U.S., Canada and Puerto Rico, which had sales of about 135 mln dlrs last year. .I 124 .C earn 1 .T FAMILY DOLLAR STORES INC 2ND QTR FEB 28. .W MATTHEWS, N.C., April 1 - Shr 28 cts vs 31 cts Net 8,117,095 vs 8,954,904 Sales 146.7 mln vs 133.0 mln Avg shares 29.0 mln vs 28.9 mln First half Shr 48 cts vs 53 cts Net 13.8 mln vs 15.2 mln Sales 273.0 mln vs 242.1 mln Avg shrs 29.0 mln vs 28.9 mln .I 126 .C earn 1 .T MCO HOLDINGS INC 4TH QTR LOSS. .W LOS ANGELES, April 1 - Oper shr loss 2.27 dlrs vs loss 1.62 dlrs Oper net loss 12.7 mln vs loss 12.1 mln Revs 60.0 mln vs 26.2 mln Year Oper shr loss 5.16 dlrs vs loss 1.56 dlrs dOper net loss 29.0 mln vs loss 12.4 mln Revs 139.3 mln vs 110.0 mln NOTE: 1985 operating losses exclude profits of 19.5 mln dlrs, or 2.64 dlrs a share, in quarter and 20.6 mln dlrs, or 2.74 dlrs a share, in year from discontinued operations 1985 loss in both periods includes pre-tax charge of 16.9 mln dlrs on write down of oil properties. 1986 year loss includes pre-tax charge of 23.0 mln dlrs for write down of oil and gas properties. .I 128 .C interest 1 .T BUNDESBANK WILL NOT HOLD PRESS CONFERENCE TOMORROW. .W FRANKFURT, April 1 - The Bundesbank will not hold a press conference after its regular fortnightly council meeting tomorrow, a spokesman said in answer to enquiries. Bundesbank vice-president Helmut Schlesinger will chair the meeting, as president Karl Otto Poehl has a private engagement. The next meeting is scheduled for April 16. .I 131 .C interest 1 .T ******MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM. .W 7-1/2, EFFECTIVE TODAY .I 132 .C earn 1 .T RANSBURG CORP 1ST QTR FEB 28 LOSS. .W INDIANAPOLIS, April 1 - Oper shr loss 19 cts vs profit one ct Oper net loss 1,495,000 vs profit 50,000 Revs 52.3 mln vs 48.9 mln NOTE: Earnings exclude gains from utilization of tax loss carryforwards of 82,000 dlrs, or one ct a share vs 300,000 dlrs, or three cts a share .I 133 .C acq 1 .T ******CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER,. .W EXPLORES ALTERNATIVES .I 135 .C interest 1 .T MANUFACTURERS HANOVER RAISES PRIME RATE. .W NEW YORK, April 1 - Manufacturers Hanover Trust Co became the third major U.S. bank to increase its prime rate to 7-3/4 pct from 7-1/2, matching a move initiated yesterday by Citibank and Chase Manhattan. The bank, the main subsidiary of Manufacturers Hanover Corp, said the new rate is effective today. .I 136 .C earn 1 .T SNYDER OIL PARTNERS LP SETS QUARTERLY. .W FORT WORTH, Texas, April 1 - Qtly div 30 cts vs 30 cts prior Pay April 30 Record April 15 .I 137 .C acq 1 .T MEDAR ACQUIRES OWENS-ILLINOIS UNIT. .W FARMINGTON HILLS, MICH., April 1 - Medar Inc said it acquired Automatic Inspection Devices Inc, a subsidiary of Owens-Illinois Inc, Toledo, Ohio, through an exchange of stock for 80 pct of the company. Automatic Designs and manufactures a line of machine vision systems for the packaging, pharmaceutical, electronics and consumer goods industries. .I 138 .C acq 1 .T ALLIS-CHALMERS ESTIMATES PROCEEDS OF SALE. .W MILWAUKEE, WIS., April 1 - Allis-Chalmers Corp said it expects cash proceeds from the proposed sale of its solids processing equipment and minerals systems businesses to exceed 90 mln dlrs, with no material gain or loss anticipated from the planned sale. Closing of the sale to Boliden AB of Sweden would be part of the overall restructure of Allis-Chalmers, which was announced on March Four, the company said. Allis-Chalmers said the business entities included in the transaction had total sales of about 250 mln dlrs in 1986, with total employment of about 4,300. The solids processing equipment business involves manufacture of crushing and related equipment for mining. It consists of operations in Sweden, Australia, Brazil, France, Great Britain, Spain and Appleton, Wis. The minerals systems business has operations in West Allis, Wis., and Lachine, Quebec, Canada. .I 139 .C oilseed 1; ship 1; grain 1 .T ARGENTINE GRAIN SHIPPING SITUATION. .W BUENOS AIRES, April 1 - One grain vessel was awaiting berth at Bahia Blanca, four at Buenos Aires and five at Rosario, on March 31, National Grain Board figures show. The situation at these ports was as follows, giving the number of ships loading, awaiting berth and expected respectively. Bahia Blanca - 4, 1, 1 Buenos Aires - 1, 4, 9 Rosario - 6, 5, 7 The tonnage of grain and oilseeds to be loaded onto ships loading, awaiting berth and expected at each port was as follows. Bahia Blanca - Wheat 161,360. Buenos Aires - Maize 104,304, Wheat 14,330. Rosario - Wheat 50,400, maize 157,040, subproducts 50,100, sunflowerseed 1,000 and millet 3,100. .I 141 .C interest 1 .T IRVING TRUST RAISES PRIME RATE. .W NEW YORK, April 1 - Irving Trust Co said it is raising its prime rate to 7-3/4 pct from 7-1/2, effective immediately. It becomes the fourth U.S. bank to raise the rate, following Citibank, Chase Manhattan and Manufacturers Hanover Trust. .I 142 .C hog 1; livestock 1 .T HOG REPORT SHOWS MORE HOGS ON FARMS. .W By Jerry Bieszk, Reuters Chicago, April 1 - The USDA quarterly hogs and pig report yesterday showed more hogs on U.S. farms compared to last year as profitability resulting from low grain prices encouraged producers to step up production, analysts said. Most analysts seemed to agree with Chicago Mercantile Exchange floor traders that the report will be viewed as bearish to pork futures and futures prices may open sharply lower today. Some traders and analysts expect limit declines in nearby contracts, with spillover selling likely in cattle. University of Missouri agronomist Glen Grimes said,"The report shows that hog producers have responded to a very desirable feeding ratio that they enjoyed for the past 10 months." Shearson Lehman analyst Chuck Levitt said hog futures prices are above producers' break even points. Even if futures fell the daily limit of 1.50 cents today, producers could still lock in a profit, which increases the likelihood of heavy selling pressure today. "We have not had a period of profitability of this magnitude since last summer," Levitt said. "In fact, hog operations on many mixed livestock/grain enterprises have been so profitable that it actually enabled some farmers to get back on their feet and refinance their loans just based on the hog operation alone." Levitt said the weight breakdown in the report also was negative, in that some lead time was anticipated before the slaughter increased from the previous year. We expected farmers to increase hog operations, but we didn't expect this degree of expansion to show up in a 10-state spring report, Levitt added. High hog corn ratios (the number of bushels of corn that could be bought for 100 lbs of hog) and the resulting increased profits, encouraged farmers and confinement operations to increase production starting late last year. Analysts also noted that part of the increase in the hog herd resulted from a revision of the December report and without the revision, the March report might have been very close to average expectations. Robin Fuller of Agri Analysis said the USDA made a major upward revision of 105,000 head in the size of the breeding herd in the December 1 report. So the December report was more bearish than initially indicated. But Fuller, as well as other analysts, expected the report to be less negative on deferred futures contracts. Distant contracts are already at a sharp discount to cash because traders anticipated high farrowing intentions, she noted. Discounts in the October and December contracts take into consideration a six to seven pct increase in March/May farrowing intentions, which was borne out in the March 1 report, Fuller said. Grimes said, "As far as the distant months are concerned, if our first quarter pig crop is up only six pct and under 60 lb inventories actually up only five pct, it would take a tremendous discount in price for each percent increase for us to push down to the prices that the current futures show for the July and August period." Jerry Abbenhaus, analyst for AGE Clearing noted that distant futures prices are already 15 to 20 dlrs lower than they were last summer. "If cash hogs at the 7-markets last year averaged 61 dlrs during July, that doesn't mean hogs have to be 15 dlrs cheaper this year because we have six pct more numbers," he said. .I 143 .C acq 1 .T CONRAC REJECTS MARK IV OFFER. .W STAMFORD, Conn., April 1 - Conrac Corp said its board has rejected MArk IV Industries Inc's tender offer for all Conract shares at 25 dlrs each, and no Conract director of officer plans to tender any shares. The company said financial advisor determined the price to be inadequate. It said its board has instructed management to explore and develop with financial and legal advisors alternative courses of action to maximize shareholder values. .I 144 .C acq 1 .T TAFT HAD NOT COMPLETED TV STATION SALE. .W CINCINNATI, Ohio, April 1 - Taft Broadcasting Co said the sale of its independent television stations to TVX Broadcast Group, which had been set for yesterday, did not occur. TVX and its investment bankers, Salomon Inc's Salomon Brothers, advised Taft the closing would not be consumated as scheduled, the company said. TVX and Salomon also advised Taft they hope to be able to close in near future, the company said, adding it is prepared to close at any time. A Taft spokeswoman referred all questions to TVX and Salomon. Taft agreed in November to sell the stations in Philadelphia, Washington, Miami, Fort Worth-Dallas and Houston TVX Broadcast for 240 mln dlrs. At the time, Taft said the transaction would result in an after tax charge of 45 to 50 mln dlrs. .I 146 .C earn 1; iron-steel 1 .T THYSSEN SEES UP TO 20 PCT LOWER SALES IN 1986/87. .W HANOVER, April 1 - Thyssen AG expects a fall of between 15 and 20 pct in consolidated turnover in 1986/87, chief executive Dieter Spethmann said. He told journalists the exact decline would depend on dollar developments. The Thyssen group did over 50 pct of its business outside West Germany. Spethmann made no comment on 1986/87 group earnings. World group net profit fell to 370.1 mln marks in the year ended September 1986 from 472.4 mln a year earlier on group sales which fell to 40.00 billion marks from a previous 44.32 billion. Last week Spethmann told the annual meeting Thyssen expected to post a good profit in 1986/87 despite expected losses in the mass steel-making operations this year. Spethmann said engineering turnover would not be lower this year, but lower steel prices would result in a drop in steel turnover and sales volume. This would also affect Thyssen's trading operations, he said. Spethmann also categorically denied a magazine article published this week which spoke of a dispute between him and Heinz Kriwet, management board chairman of Thyssen Stahl AG, over planned job cuts in steel plants in the Ruhr area. .I 148 .C acq 1 .T CYCLOPS NAMES DIXONS OFFICIALS TO BOARD. .W PITTSBURGH, April 1 - Cyclops corp said it has reconstituted its board to include three executives following Dixons' acquisition of 83 pct of Cyclops' 4,061,000 shares in a 95 dlr per share tender offer. Cyclops said remaining on the six-member board are chairman and chief executive W.H. Knoell, president and chief operating officer James F. Will and senior vice president William D. Dickey. .I 151 .C acq 1 .T SOUTHMARK COMPLETES ACQUISITION. .W DALLAS, April 1 - Southmark Corp said it has completed the purchase of Georgia International Life Insurance Co from Capital Holding Corp for cash and Southmark securities worth over 85 mln dlrs. .I 153 .C earn 1 .T VALHI REPORTS PRO-FORMA EARNINGS. .W DALLAS, April 1 - Valhi Inc, formed by the March 10 merger of Amalgamated Sugar Co into LLC Corp, said it had unaudited pro-forma earnings of 72 mln dlrs, or 61 cts a share, for the six months ended December 31. Valhi said these results were prepared as if the merger had occurred July 1, 1986, and on substantially the same basis as the pro-forma financial information in LLC's and Amalgamated's joint proxy statement dated February 10. Valhi said it has about 117 mln common shares outstanding with about 85 pct held by . .I 158 .C earn 1 .T ACME-CLEVELAND CORP SETS QUARTERLY. .W CLEVELAND, April 1 - Qtly div 10 cts vs 10 cts prior Pay May 13 Record April 29 .I 160 .C veg-oil 1 .T U.S. OIL/LARD STATISTICS. .W WASHINGTON, April 1 - U.S. Census Bureau figures released here showed factory and warehouse stocks on Feb 28 included the following, with comparisons, in mln lbs -- 02/28/87 01/31/87 02/28/86 Soybean Oils -- Crude 1,663.3-x 1,542.6 893.7 Refined 300.5-x 294.7-r 287.4 Total 1,963.8-x 1,837.3-r 1,181.1 Cotton Oils -- Crude 65.7 55.8-r 64.5 Refined 122.3 109.6-r 119.6 Total 188.0 165.4-r 184.1 X-Revised from preliminary data released in the bureau's oilseeds report of March 23. R-Revised. Factory and Warehouse Stocks, continued - 02/28/87 01/31/87 02/28/86 Corn Oils -- Crude 32.5 32.3-r 44.2 Refined 65.8 54.4-r 39.9 Total 98.3 86.7-r 84.1 Lard 31.4 31.5-r 36.4 R-Revised. .I 161 .C earn 1 .T VMS STRATEGIC LAND TRUST SETS PAYOUT. .W CHICAGO, April 1 - VMS Strategic Land Trust declared an initial dividend of 30 cts a share payable May 15 to shareholders of record April 20. The dividend represents a 12 pct annual return based on the company's original offering price in December of 10 dlrs a share. The return is guaranteed through December 31, 1988, the company said. The trust invests in short term junior preconstruction mortgage loans and has total principal amount of investments of approximately 105.7 mln dlrs. .I 162 .C interest 1 .T CHEMICAL RAISES PRIME RATE TO 7-3/4 PCT. .W NEW YORK, April 1 - Chemical Bank, the main bank subsidiary of Chemical New York Corp, said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 163 .C lead 1 .T LOWERS PRICE OF LEAD METAL. .W VANCOUVER, British Columbia, April 1 - Cominco Ltd said its Cominco metals division lowered the price for lead metal sold in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per pound. .I 164 .C oilseed 1; grain 1; corn 1; soybean 1 .T MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT. .W CHICAGO, April 1 - Cash grain dealers reported slow country movement of corn and soybeans across the Midwest, with even corn sales from PIK-and-roll activity seen earlier this week drying up. Some dealers said the USDA may further adjust the posted county price at the Gulf to take into account high barge freight rates as a way to keep corn sales flowing, but added the current plan probably will be given a few weeks to see if it will work as hoped. Corn and soybean basis values continued to drop on the Illinois and MidMississippi River due to the strong barge freight rates. Toledo and Chicago elevators were finishing loading the first corn boats of the new shipping season, supporting spot basis values at those terminal points. CORN SOYBEANS TOLEDO 5 UND MAY UNC 1 UND MAY UNC CINCINNATI 1 UND MAY UNC 1 OVR MAY UP 2 NEW HAVEN 12 UND MAY UNC 2 UND MAY DN 1 N.E. INDIANA 10 UND MAY UNC 2 OVR MAY DN 1 CHICAGO 1/2 OVR MAY UNC 5 UND MAY UNC SENECA 51/2 UND MAY DN 1 7 UND MAY UNC DAVENPORT 61/2UND MAY DN61/2 61/2UND MAY DN11/2 CLINTON 5 UND MAY DN 3 UA CEDAR RAPIDS 11 UND MAY DN 3 13 UND MAY DN 2 HRW WHEAT TOLEDO 58 LB 35 OVR MAY UP 1 CHICAGO 57 LB 25 OVR MAY UNC CINCINNATI DP 10 OVR MAY UNC NE INDIANA DP 8 OVR MAY UNC PIK CERTIFICATES - 103/104 PCT - UNC/ DN 2 NC - NO COMPARISON UA - UNAVAILABLE UNC - UNCHANGED DP - DELAYED PRICING .I 166 .C money-fx 1 .T ******FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER. .W ACCOUNT, FED SAYS .I 167 .C oilseed 1; grain 1; corn 1; soybean 1 .T MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT. .W CHICAGO, April 1 - Cash grain dealers reported slow country movement of corn and soybeans across the Midwest, with even corn sales from PIK-and-roll activity seen earlier this week drying up. Some dealers said the USDA may further adjust the posted county price at the Gulf to take into account high barge freight rates as a way to keep corn sales flowing, but added the current plan probably will be given a few weeks to see if it will work as hoped. Corn and soybean basis values continued to drop on the Illinois and MidMississippi River due to the strong barge freight rates. Toledo and Chicago elevators were finishing loading the first corn boats of the new shipping season, supporting spot basis values at those terminal points. .I 168 .C interest 1 .T MARINE MIDLAND RAISES PRIME RATE. .W NEW YORK, April 1 - Marine Midland Banks Inc said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 169 .C interest 1 .T FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 1 - The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-69 days 5.00 pct 5.00 pct 30-124 days 70-88 days 5.92 pct 5.90 pct 125-150 days 89-123 days 5.00 pct 5.00 pct 151-173 days 124-150 days 5.93 pct 5.92 pct 174-182 days 151-349 days 5.00 pct 5.00 pct 183-349 days 350-360 days 5.98 pct 5.94 pct 350-360 days .I 172 .C dlr 1; money-fx 1; dmk 1 .T TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES. .W ANKARA, April 1 - The Turkish Central Bank set a lira/dollar rate for April 2 of 780.00/783.90 to the dollar, down from the previous 777.00/780.89. The Bank also set a lira/mark rate of 429.15/431.30 to the mark, up from the previous 430.50/432.65. .I 173 .C copper 1 .T ASARCO LOWERS COPPER PRICE 1.50 CTS TO 67 CTS. .W NEW YORK, April 1 - Asarco Inc said it is decreasing its domestic delivered copper cathode price by 1.50 cents to 67.0 cents a lb, effective immediately. .I 174 .C money-fx 1 .T FED BUYS ONE BILLION DLRS OF BILLS FOR CUSTOMER. .W NEW YORK, April 1 - The Federal Reserve is buying one billion dlrs of Treasury bills for customer account for delivery today, a spokesman for the bank said. Fed funds were trading at 6-3/16 pct at the time of the purchase, which came several hours before the Fed normally transacts business for its customers. Economists said the purchase was almost certainly related to the investment of proceeds from recent central bank intervention in the foreign exchanges. The Bank of Japan alone is estimated to have bought about six billion dlrs in March in a bid to prop up the dollar. .I 175 .C earn 1 .T ******GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE. .W OF GEORGIA GULF STAKE .I 177 .C gnp 1; coffee 1 .T KENYAN MINISTER FORECASTS ECONOMIC EXPANSION. .W NAIROBI, April 1 - Kenya's economy will continue to expand this year and the government will do more to encourage investment by foreign firms and the local private sector, Planning Minister Robert Ouko said. He told a news conference that the government would soon create a special bureau to expedite processing of investment applications by local and foreign investors. Praising the role of multinational companies and local entrepreneurs in Kenya's economy, the minister promised to maintain a close working contact with the private sector. The economy grew by 5.3 pct last year, up from 4.1 pct in 1985, Ouko said. This was owing to high prices for the country's coffee exports, low oil prices, low inflation and rising real incomes, he added. "Despite rising petroleum prices and falling coffee prices, Kenya's economy is still expected to improve in 1987," the planning minister said. Agriculture would expand significantly if favourable weather continued and farmers responded to producer price rises announced in February, the minister added. Kenyan farmers are anxiously awaiting the arrival of the long rainy season, which is due to start about now. Ouko said the production of Kenya's main cash crops increased during the second half of last year. Coffee deliveries to the state-run Coffee Board of Kenya rose 17 pct and tea deliveries rose four pct during the period, he said. .I 181 .C veg-oil 1 .T U.S. VEGETABLE OIL PRODUCTS OUTPUT IN FEBRUARY. .W WASHINGTON, April 1 - U.S. factories used 1,053.0 mln lbs of various vegetable oils in the production of edible products during February, the Census Bureau reported. That compared with a revised usage of 1,075.0 mln lbs in January and 1,084.2 mln lbs in February, 1986. February production of selected products included the following, with comparisons, in mln lbs -- Feb 87 Jan 87 Feb 86 Baking or Frying Fats -- 355.5 387.6-r 427.4 Soybean Salad and Cooking Oil -- 388.1 373.3-r 351.7 R-Revised. Production, continued (in mln lbs --) Feb 87 Jan 87 Feb 86 Other Salad and Cooking Oils 111.2 111.4-r 114.3 Margarine 218.8 216.9-r 214.4 Glycerine -- Crude 21.5 25.9 31.3 Refined 23.5 23.6-r 25.4 Fatty Acids 102.9 112.5-r 113.1 Meat/Meal Tankage 410.2 458.2-r 446.2 R-Revised. REUTER^M .I 182 .C acq 1 .T BEECHAM GROUP TO SELL UNIT. .W GREENWICH, Conn., April 1 - Privately-held investment firm said it has signed a definitive agreement for an investment group it heads to acquire Roberts Consolidated Industries from for 45 mln dlrs. Roberts makes and distributes accessories, adhesives and tools used in carpet installation. Dubin Clark said its group includes Roberts management and London investment company . It said Ronald J. Dubin will become vice chairman of Roberts and J. Thomas Clark chairman. REUTER^M .I 185 .C livestock 1 .T U.S. TALLOW PRODUCTION AND STOCKS. .W WASHINGTON, April 1 - U.S. factory production of inedible tallow and grease amounted to 421.5 mln lbs in February, vs a revised 471.5 mln lbs the previous month and 419.2 mln lbs in the year-ago period, the Census Bureau said. The bureau placed February factory production of edible tallow at 96.9 mln lbs, vs a revised 111.4 mln lbs the previous month and 122.7 mln lbs in February a year earlier. It estimated factory and warehouse stocks of inedible tallow on February 28 at 410.7 mln lbs, vs a revised 351.6 mln the previous month and 361.9 mln in February, 1986. End-Feb stocks of edible tallow amounted to 41.9 mln lbs, vs a revised 40.1 mln lbs and 48.6 mln lbs in their respective periods. Factory consumption of inedible tallow and grease in February was assessed at 238.3 mln lbs, vs a revised 250.4 mln lbs a month earlier and 220.5 mln lbs in the year-ago period. During February, factories used 65.3 mln lbs of edible tallow, vs a revised 71.8 mln and 84.6 mln, respectively. Total factory production and consumption of tallow in the 1987 marketing season, which began Jan 1, vs the 1986 season, were as follows, in mln lbs -- Production -- 1987 1986 Inedible 893.0 920.1 Edible 208.3 274.7 Consumption -- Inedible 488.7 473.7 Edible 137.1 176.4 .I 186 .C lead 1 .T COMINCO LTD CUTS LEAD PRICE IN CANADA. .W Vancouver, British Columbia, April 1 - Cominco Ltd said its Cominco metals division lowered the price for lead metal sold in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per pound. .I 188 .C interest 1 .T MERCANTILE BANK N.A. RAISES PRIME RATE. .W ST. LOUIS, April 1 - Mercantile Bancorp said its Mercantile Bank N.A. raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 189 .C livestock 1 .T U.S. LARD CONSUMPTION IN FEBRUARY. .W WASHINGTON, April 1 - U.S. factory usage of lard in the production of both edible and inedible products during February totaled 22.0 mln lbs, vs a revised 20.2 mln lbs in January, according to Census Bureau figures. In the year-earlier period, usage, which includes hydrogenated vegetable and animal fats and other oils in process, amounted to 31.4 mln lbs. Usage in February comprised 16.6 mln lbs of edible products and 5.4 mln lbs of inedible products. Total lard usage in the 1986/87 marketing season, which began October 1, amounted to 125.2 mln lbs, vs 185.6 mln lbs in the year-ago period. .I 190 .C acq 1 .T AUTOSPA TO BUY CONTROL OF CARDIS . .W NEW YORK, April 1 - Autospa Corp said it has signed an agreement to purchase 2,400,000 shares of eight pct convertible preferred stock of Cardis Corp -- representing voting control -- for 15 mln dlrs. The company said the preferred purchase will be financed by an investment group led by Autospa. It said it will also receive from Cardis five-year options to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs each, depending on the time of exercise, and warrants to purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each. The company said the exercise of all options and warrants by Autospa would result in a tital investment of 50 to 55 mln dlrs. Execution of a definitive agreement is expected by April 22, it said, subject to the completion of financing arrangements, and closing is expected by May 15. .I 192 .C oilseed 1; grain 1; corn 1; soybean 1; sunseed 1 .T FRENCH FARMERS PLAN TO CUT MAIZE PLANTINGS. .W PARIS, April 1 - French farmers are planning to cut their maize sowings by between 100,000 and 150,000 hectares this year from the 1.87 mln ha harvested in 1986, the French Maize Producers' Association, AGPM, said. It said its first estimate of planting intentions indicated cuts of 15 to 20 pct in plantings in the northern region of Picardy and the Paris Basin, which harvested 192,000 ha last year. In the centre-west region of Poitou-Charentes, plantings were estimated four to seven pct up on last year's harvested 244,000 ha. Planting intentions in the south-east ranged between nine pct less and two pct more than last year's 125,000 ha. In the south-west the AGPM said producers intended to plant a similar area to last year's 671,100 harvested hectares, provided water supplies are adequate in the Midi-Pyrenees region after the last two years of drought. Meanwhile, the oilseed plant breeding association, AMSOL, said sunflower plantings in France this year are indicated at between 900,000 and 950,000 ha against 829,000 harvested last year, while soya plantings are indicated at 80,000 ha against last year's harvested 48,000. .I 194 .C earn 1 .T WEATHERFORD INTERNATIONAL INC 4TH QTR LOSS. .W HOUSTON, April 1 - Shr loss 40 cts vs loss 1.30 dlrs Net loss 3,619,000 vs loss 11.3 mln Revs 24.1 mln vs 34.1 mln Year Shr loss 4.36 dlrs vs loss 2.09 dlrs Net loss 38.7 mln vs loss 16.8 mln Revs 104.6 mln vs 133.9 mln .I 195 .C earn 1 .T PROGRESSIVE SAVINGS 4TH QTR LOSS. .W ALHAMBRA, Calif., April 1 - Shr loss 1.05 dlrs vs profit three cts Net loss 4,477,000 vs profit 107,818 Revs 10.9 mln vs 13.8 mln Year Shr loss 79 cts vs profit three cts Net loss 3,364,058 vs profit 123,880 Revs 50.9 mln vs 57.2 mln Note: Full name Progressive Savings and Loan Association. Current year figures include 5.1 mln dlr incrase to reserves for estimated real estate and loan losses. .I 196 .C acq 1 .T ALLIED SUPERMARKETS FILES PROPOSED MERGER. .W DETROIT, April 1 - Allied Supermarkets Inc said it filed a registration statement with the Securities and Exchange Commission for a proposed merger with , a supermarket, combination store operator. Allied said the statement covers 140 mln dlrs of senior subordinated discount debentures and 100 mln dlrs of subordinated debentures, principal amounts, with a proposed aggregate offering price of about 100 mln dlrs for each issue. Drexel Burnham Lambert Inc and Donaldson, Lufkin and Jenrette Securities Inc are co-underwriters of both issues, which Allied expects to offer in early June, Allied said. .I 198 .C cotton 1 .T CERTIFICATED COTTON STOCKS. .W NEW YORK, April 1 - Certificated cotton stocks deliverable on the New York Cotton Exchange No 2 cotton futures contract as of March 31 were reported at 36,659 bales, unchanged from the previous day's figure. There were no bales awaiting review and 985 bales awaiting decertification. .I 200 .C dlr 1; money-fx 1; dmk 1; stg 1 .T FINLAND REVISES CURRENCY BASKET. .W HELSINKI, April 1 - The Bank of Finland said it has revised the weightings in its currency basket with effect from today. Weightings match the respective country's share in Finland's foreign trade. Weights in percentages compared with former weights. Dollar 9.0 (8.8) Sterling 14.3 (13.8) Swedish crown 20.4 (20.6) Norwegian crown 5.2 (5.2) Danish crown 5.2 (5.3) German mark 19.3 (19.6) REUTER^M .I 204 .C earn 1 .T JOHN O. BUTLER CO 2ND QTR FEB 28 NET. .W CHICAGO, April 1 - Shr 19 cts vs 18 cts Net 1,230,041 vs 1,153,280 Sales 10,909,729 vs 9,675,355 Six mths Shr 31 cts vs 29 cts Net 2,019,930 vs 1,857,357 Sales 21.0 mln vs 17.8 mln .I 205 .C earn 1 .T YEAR JAN 31 NET. .W Montreal, April 1 - Shr 51 cts vs 36 cts Net 2,543,285 vs 1,686,559 Sales 153.2 mln vs 120.7 mln .I 206 .C earn 1 .T COSMO COMMUNICATIONS CORP YEAR LOSS. .W MIAMI, April 1 - Shr loss one ct vs loss 2.16 dlrs Net loss 30,000 vs loss 12.4 mln Revs 27.4 mln vs 38.3 mln .I 207 .C earn 1 .T LINEAR SEES LOWER COMPARABLE 4TH QTR NET. .W TULSA, Okla., April 1, - Linear Films Inc said its fourth quarter earnings for the period ended March 31, will be lower than the 1,235,000 dlrs or 19 cts a share reported in the year-ago quarter on sales of 11.8 mln dlrs. The company attributed the lower earnings to narrowing profit margins on stretch film. Linear also said it is increasing its stretch film prices by six pct effective April 15. .I 208 .C earn 1 .T STAODYNAMICS INC 4TH QTR NET. .W LONGMONT, Colo., April 1 - Shr three cts vs six cts Net 54,965 vs 106,147 Revs 2,124,983 vs 1,915,928 Avg shrs 2,206,017 vs 1,878,438 Year Shr 14 cts vs eight cts Net 302,388 vs 157,690 Revs 7,952,360 vs 7,495,936 Avg shrs 2,139,991 vs 2,051,178 .I 209 .C acq 1 .T 1ST SOURCE COMPLETES MERGER. .W SOUTH BEND, Ind., April 1 - 1st Source Bank said it completed its merger with of North Liberty, Ind. The bank said Community State Bank's shareholders approved the merger at a meeting last Saturday, while Monday the directors of 1st Source also approved the move. The merger would add Community Bank's 20 mln dlrs in assets to 1st Source's more than one billion dlrs in assets, 1st Source said. .I 210 .C acq 1 .T FIRST NATIONAL BANK CORP TO BUY BRANCH. .W MOUNT CLEMENS, MICH., April 1 - First National Bank Corp, the newly formed parent of First National Bank in Mount Clemens, Mich., and Bankers Fund Life Insurance Co, said it reached an agreement to buy a branch in Clinton Township from a nonrelated financial institution. It said the acquisition brings to 10 the number of bank branches in Macomb County. Terms were not disclosed. Separately, the newly formed holding company also said it named Arie Guldemond as chairman and Harold Allmacher as president and chief executive officer. .I 211 .C earn 1 .T GEORGIA PACIFIC SEES GAIN FROM SALE. .W ATLANTA, April 1 - Georgia-Pacific Corp said its second quarter results will include a gain of 60 mln dlrs pre-tax, or 34 cts per share after-tax, from the sale of its interest in . The company said it is selling warrants for about 1.8 mln shares of Georgia Gulf common stock to Goldman Sachs and Co in connection with the 4.8 mln share offering of Georgia Gulf. It said it received the warrants when it agreed to sell its commmodity chemical operations to Georgia Gulf in 1984. .I 212 .C oilseed 1; soybean 1 .T U.S., ARGENTINA SETTLE SOYPRODUCT CASE - YEUTTER. .W WASHINGTON, April 1 - U.S. Trade Representative Clayton Yeutter said the United States and Argentina have settled a case brought by the U.S. soybean crushing industry alleging unfair subsidies to Argentina's crushing industry. Speaking to an Agribusiness Education forum here late yesterday, Yeutter said the case was resolved at a meeting with Argentine Agriculture Secretary Ernesto Figuerras during a trade ministers' meeting in New Zealand last week. Under a verbal understanding between the two ministers, Argentina will soon abolish export taxes on soybeans and products, U.S. and Argentine officials said. The U.S. case brought by the U.S. National Soybean Processors Association alleged Argentina, through differential export taxes, implicitly subsidized domestic soybean crushers. The U.S. crushing industry, in its complaint under Section 301 of trade law, said higher Argentine export taxes on soybeans than on products encourage the export of products and represented an unfair trade practice. Yeutter told Figuerras that all agencies of the U.S. government supported the U.S. complaint and unless Argentina took steps to eliminate the taxes, the United States would consider taking further action in the case, U.S. and Argentine officials said. An Argentine official here said no timetable was given for removal of the Argentine export taxes. .I 217 .C interest 1 .T CONTINENTAL ILLINOIS RAISES PRIME RATE. .W CHICAGO, April 1 - Continental Illinois Corp said it has raised its prime rate to 7-3/4 from 7-1/2. .I 218 .C earn 1 .T THOUSAND TRAILS INC YEAR LOSS. .W BELLEVUE, Wash., April 1 - Shr loss 4.87 dlrs vs profit 16 cts Net loss 50,422,000 vs profit 1,788,000 Revs 113.4 mln vs 173.7 mln Note: Current year figures include 33.3 mln dlr after-tax writedown of land and improvements, a 5.6 mln dlr increase in allowance for doubtful accounts and after-tax gain of three mln dlrs on debt retirement. .I 221 .C earn 1 .T VISTA ORGANIZATION LTD YEAR NET. .W NEW YORK, April 1 - Shr profit one ct vs loss nine cts Net profit 177,061 vs loss 1,364,878 Revs 5,913,334 vs 487,121 Avg shrs 18.6 mln vs 15.9 mln .I 222 .C earn 1 .T TCA CABLE TV INC SETS QUARTERLY. .W TYLER, Texas, April 1 - Qtly div six cts vs six cts prior Pay April 23 Record April Nine .I 224 .C acq 1 .T MONSANTO INVESTS IN BIOTECHNOLOGY . .W NEWTON, Mass., April 1 - Biotechnology Development Corp said its Medicontrol Corp subsidiary received a 500,000 dlr investment by Monsanto Co's G.D. Searle and Co subsidiary. The company said the investment was made pursuant to an option Searle held, and increases Searle's stake in Medicontrol to 19.8 pct with a total investment of one mln dlrs. .I 225 .C acq 1 .T CHASE BUYS BORG-WARNER UNIT. .W NEW YORK, April 1 - Chase Manhattan Corp said Chase Trans-Info, a subsidiary of its Chase Manhattan Bank N.A. unit, has bought Borg-Warner Corp's Traffic Services business, including an Illinois processing center, for an undisclosed sum. Borg Warner Traffic Services provides freight bill pre-audit, payment and information services to industry through Borg-Warner Acceptance Corp. Chase Trans-Info, which offers similar services, is now the largest provider of information services for the transportation industry. .I 227 .C acq 1; strategic-metal 1 .T MOUNTAIN STATES ADDES TWO PROPERTIES. .W SALT LAKE CITY, April 1 - Mountain States Resources Corp said it acquired two properties to its strategic minerals holdings. The acquisitions bring to its land position a total of 5,100 acres of titanium, zirconium and rare earth resources, the company said. Both properties, located in southern Utah, consist of approximately 1,430 acres of unpatented mining claims and one state lease, it said. The company also announced the formation of Rare Tech Minerals Inc, a wholly-owned subsidiary. .I 229 .C earn 1 .T REPUBLIC SAVINGS AND LOAN SETS DIVIDEND. .W MILWAUKEE, Wis., April 1 - Qtly div 30 cts vs 30 cts prior Pay April 27 Record April 13 NOTE: Company's full name is Republic Savings and Loan Association of Wisconsin. .I 230 .C oilseed 1; wheat 1; grain 1; corn 1; soybean 1 .T SHULTZ USSR TRIP FUELS TALK OF EEP WHEAT OFFER. .W By Nelson Graves, Reuters WASHINGTON, April 1 - Speculation the United States will offer subsidized wheat to the Soviet Union appears to have reached a new level of intensity in the run-up to Secretary of State George Shultz' visit later this month to Moscow. Rumors of an impending deal have coursed through wheat markets since officials from the two countries held their customary, semi-annual grain talks in February. Moscow's decision at that time to reenter the U.S. corn market strengthened the perception of warming farm trade prospects. Shultz is set to arrive in Moscow April 13. Shultz' statement two weeks ago that he would not stand in the way of a wheat subsidy offer under the Export Enhancement Program, EEP, coupled with the announcement of his visit to Moscow, was interpreted by many grain trade representatives here as a clear signal that the Reagan administration was preparing an offer. Administration officials -- in and out of the U.S. Agriculture Department -- have been extremely tight-lipped about the prospects of a subsidy offer. But USDA officials for the most part have abandoned the contention the proposal is dormant, suggesting that an offer, while not a "done deal," is a live possibility. Prominent U.S. grain trade representatives -- many of whom asked not to be identified -- continue to maintain that an offer to subsidize four mln tonnes of wheat is imminent. Others, who one month ago claimed a deal was not possible, are saying they would not rule one out. Rep. Pat Roberts, R-Kan., yesterday went so far as to predict a subsidy offer would be made within the next ten days to two weeks. Aides to Roberts said he had spoken to Republican leaders who had been in contact with administration officials. Richard Fritz, director of international marketing at U.S. Wheat Associates, said he was confident an export enhancement offer would be made by the middle of this month. Fritz also said he thought the value of the bonus would end up being close to the offer Washington made Peking earlier this year when USDA approved subsidies to China of around 36 dlrs per tonne on one mln tonnes of wheat. Some grain trade representatives say a four-mln-tonne wheat subsidy offer might help stimulate more Soviet purchases of U.S. corn and open the door to U.S. sales of soybeans. As ever, one of the crucial sticking points in a wheat deal would appear to be price. Last summer the administration took the controversial step of offering the Soviets subsidized wheat -- but were embarrassed when Moscow spurned the proposal on the grounds that the 15-dlr-per-tonne subsidy still left U.S. wheat prices far above world market prices. The administration's decision to set the subsidy level up front instead of accepting bids from exporters appeared to be a means of controlling the price while attempting to dampen criticism, grain trade sources said. Nonetheless, the pricing procedure did not prevent Shultz from saying the Soviets were "chortling" because Washington was offering Soviet housewives cheaper grain than that available to U.S. housewives. The conventional wisdom among grain trade representatives here is that a general warming of relations between the two countries since last summer, combined with continued hard times in the U.S. grain belt, would favor a subsidy offer. In addition, the USSR has made it clear it would consider buying U.S. wheat if it were priced more competitively. However, observers have not forgotten the circumstances surrounding the administration's announcement of the wheat subsidy offer last summer. Up until the time of the announcment, congressional and industry leaders were led to believe the White House had decided to expand the Export Enhancement Program to include not only the Soviets, but also a much broader list of countries. Instead, the administration scaled back the offer to include only the Soviets. That last-minute change of heart adds a measure of uncertainty even to the predictions of those most convinced that the administration will not now pass up the opportunity to sell four mln tonnes of wheat to the Soviet Union. .I 231 .C sugar 1 .T KAINES CONFIRMS WHITE SUGAR SALES TO INDIA. .W LONDON, April 1 - London-based sugar operator Kaines Ltd confirmed it sold two cargoes of white sugar to India out of an estimated overall sales total of four or five cargoes in which other brokers participated. The sugar, for April/May and April/June shipment, was sold at between 214 and 218 dlrs a tonne cif, it said. .I 233 .C earn 1 .T YEAR JAN 31 NET. .W CANTON, Mass., April 1 - Oper net 94.4 mln vs 74.1 mln Revs 1.3 bilion vs 1.2 billion NOTE: THL is parent to SCOA Industries Inc, acquired in a leveraged buyout in December 1985. .I 235 .C acq 1; strategic-metal 1 .T MOUNTAIN STATES ADDS TWO MINERALS PROPERTIES. .W SALT LAKE CITY, April 1 - Mountain States Resources Corp said it acquired two properties to add to its strategic minerals holdings. The acquisitions include a total of 5,100 acres of titanium, zirconium and rare earth resources, the company said. Both properties, located in southern Utah, consist of approximately 1,430 acres of unpatented mining claims and one state lease, it said. The company also announced the formation of Rare Tech Minerals Inc, a wholly-owned subsidiary. .I 236 .C coffee 1 .T ******RESTORATION OF COFFEE EXPORT QUOTAS BEFORE. .W OCTOBER SEEMS UNLIKELY - ICO PRODUCER DELEGATES .I 237 .C wheat 1; grain 1 .T SHULTZ USSR TRIP FUELS TALK OF EEP WHEAT OFFER. .W WASHINGTON, April 1 - Speculation the United States will offer subsidized wheat to the Soviet Union appears to have reached a new level of intensity in the run-up to Secretary of State George Shultz' visit later this month to Moscow. Rumors of an impending deal have coursed through wheat markets since officials from the two countries held their customary, semi-annual grain talks in February. Moscow's decision at that time to reenter the U.S. corn market strengthened the perception of warming farm trade prospects. Shultz is set to arrive in Moscow April 13. .I 238 .C interest 1 .T FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES. .W WASHINGTON, April 1 - The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY RATE OLD RATE MATURITY 32 days 6.00 pct 6.10 pct 1 day .I 239 .C coffee 1 .T ICO QUOTAS BEFORE OCTOBER UNLIKELY - DELEGATES. .W LONDON, April 1 - The restoration of coffee export quotas before the end of the current 1986/87 coffee year (Oct 1/Sept 30) now seems unlikely, given reluctance by International Coffee Organization, ICO, producers and consumers to resume negotiations on an interim quota accord, producer delegates told reporters. Consumers and most producers see no point in reopening the quota dialogue while Brazil's position remains unchanged, they said. Brazil's refusal to accept a reduction in its previous 30 pct share of the ICO's global export quota effectively torpedoed talks here last month aimed at restoring quotas before October, the delegates noted. Disappointment at the lack of progress on quotas forced coffee futures in London and New York to new lows today, traders here said. Near May in New York fell below one dlr in early trading at around 99.10 cents per pound, traders said. Producer delegates said that while the possibility of reimposing quotas before October remained on the ICO agenda, in practice the idea had effectively been discarded. The ICO's executive board session here this week has so far barely touched on the quota debate, demonstrating general unwillingness to revive talks while chances of success are still remote, producer delegates said. Some producers are in no hurry to see quotas restored, despite the price collapse seen since the failure of last month's negotiations, they said. "With Brazil's frost season approaching, who wants to negotiate quotas," one leading producer delegate said. Coffee prices normally rise during Brazil's frost season (mainly June-August) as dealers and roasters build up stocks as insurance against possible severe frost damage to Brazil's crop. Many producers are more interested in working towards reimposing quotas from October 1, based on a new system of quota allocations valid until the International Coffee Agreement expires in 1989, they said. Guatemala has already proposed the "other oilds" producer group should meet in the next two months to begin talks on how to allocate quota shares. Producers still seem divided on how to overhaul the quota distribution system, with some producer delegates reporting growing support for a radical reallocation, based on the principle of "objective criteria" favoured by consumers. At last month's council session a splinter group of small producers backed consumer demands for new quota shares based on exportable production and stocks, while Brazil, Colombia and the rest of the producers favoured leaving quota allocations unchanged, except for some temporary adjustments. A delegate from one of the eight said more producers now supported their cause. The delegate said unless major producers like Brazil showed readiness to negotiate new quota shares, prospects for a quota accord in October also looked bleak. The U.S. and most other consumers are still determined to make reimposition of quotas conditional on a redistribution of quota shares based on "objective criteria." ICO observers remained sceptical that Brazil would be prepared to accept a quota reduction when the ICO council meets in September. Brazil has adopted a tough stance with banks on external debt negotiations and is likely to be just as tough on coffee, they said. They said Brazil's reluctance to open coffee export registrations might reflect fears this would provoke another price slide and force an emergency ICO council session, which would most likely end in failure. Producers met this afternoon to review the market situation but had only a general discussion about how further negotiations should proceed, a producer delegate said. Producers plan to hold consultations on quotas, and then may set a date for a formal producer meeting, but plans are not fixed, he said. The ICO executive board reconvened at 1650 hours local time to hear a report from consultants on ICO operations. The board meeting looks set to end today, a day earlier than scheduled, delegates said. .I 242 .C earn 1 .T (GEOFFRION LECLERC INC) SIX MTHS NET. .W MONTREAL, April 1 - Shr 39 cts vs 26 cts Net 3,466,000 vs 1,913,000 Revs 27.7 mln vs 19.4 mln Note: period ended February 28. .I 244 .C interest 1 .T FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 1 - The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 5.00 pct 30-69 days 5.92 pct 70-88 days 30-123 days 5.00 pct 5.00 pct 89-123 days 124-150 days 5.93 pct 5.93 pct 124-150 days 151-349 days 5.00 pct 5.00 pct 151-349 days 350-360 days 5.98 pct 5.98 pct 350-360 days .I 245 .C earn 1 .T TOWLE MANUFACTURING CO YEAR LOSS. .W BOSTON, April 1 - Oper shr loss 4.71 dlrs vs loss 14.09 dlrs Oper loss 22 mln vs loss 67.2 mln NOTE: 1986 loss excludes gain on the sale of Gold Lance Corp of 12.1 mln dlrs. Company is operating under chapter 11. .I 246 .C acq 1 .T ******DELTA AIR LINES COMPLETES ACQUISITION OF WESTERN AIR. .W .I 247 .C interest 1 .T ******TREASURY'S BAKER SAYS HE HOPES PRIME RATE INCREASES. .W TEMPORARY .I 250 .C earn 1 .T SOUTH ATLANTIC FINANCIAL CORP 4TH QTR. .W STAMFORD, Conn., April 1 - Shr 12 cts vs 33 cts Net 699,037 vs 1,349,077 Year Shr 54 cts vs 55 cts Net 2,748,280 vs 1,833,766 NOTE: Per shr amounts reported after preferred stock dividend requirements. .I 252 .C copper 1 .T CYPRUS LOWERS COPPER PRICE 1.25 CTS TO 67 CTS. .W DENVER, April 1 - Cyprus Minerals Company said it is decreasing its electrolytic copper cathode price by 1.25 cents to 67.0 cents a pound, effective immediately. .I 255 .C interest 1 .T TREASURY'S BAKER HOPES PRIME RATE RISE TEMPORARY. .W WASHINGTON, April 1 - Treasury Secretary James Baker said he hopes yesterday's small increase in two major money center banks' prime rate was a temporary phenomenon. "I hope it was a temporary blip upward," he told a House Appropriations subcommittee. He said the decline in interest rates since President Reagan took office remains "one of the significant accomplishments, in the economic area, of this administration." .I 256 .C acq 1 .T DELTA COMPLETES WESTERN AIR BUY. .W ATLANTA, April 1 - Delta Air Lines Inc said it completed the acquisition of Western Air Lines Inc this morning. The action follows U.S. Supreme Court Justice Sandra Day O'Connor's overnight granting of Delta and Western's request to stay an earlier injunction against the deal issued by the U.S. Court of Appeals for the Ninth Circuit. More .I 259 .C earn 1 .T AMERICAN OIL AND GAS CORP 4TH QTR LOSS. .W HOUSTON, April 1 - Shr loss 34 cts vs loss 2.14 dlrs Net loss 2,275,000 vs loss 9,560,000 Revs 17.0 mln vs 19.9 mln Year Shr loss 49 cts vs loss 2.11 dlrs Net loss 2,661,000 vs loss 9,283,000 Revs 73.5 mln vs 93.6 mln NOTE: Results have been restated to reflects equity investment in WellTech Inc for one month ended Dec 31, 1986 and its investment in American Well Servicing for the 11 months ended Nov 30, 1986 and full year 1985. 1986 and 1985 net include loss of 3,512,000 dlrs and 5,944,000 dlrs, respectively, for equity in WellTech and predecessor operations. .I 260 .C acq 1 .T ******MACANDREWS/FORBES UNIT BEGINS OFFER TO BUY ALL REVLON. .W GROUP NOT ALREADY OWNED .I 261 .C earn 1 .T YEAR ENDED DEC 31 LOSS. .W NEW ORLEANS, April 1 - Oper shr loss 1.99 dlr vs loss 4.88 dlrs Oper net loss 29.1 mln vs 70.8 mln Revs 34.8 mln vs 84.8 mln NOTE: 1986 and 1985 oper net excludes a loss of 5.5 mln dlrs or 37 cts a share and 64.6 mln dlrs or 4.43 dlrs a share, respectively, for discontinued operations. 1986 net also excludes a gain of 66.4 mln dlrs or 4.50 dlrs a share for credit on debt restructuring. .I 263 .C earn 1 .T TIERCO GROUP INC YEAR ENDED DEC 31 LOSS. .W OKLAHOMA CITY, April 1 - Shr loss 72 cts vs loss 1.57 dlr Net loss 1,526,359 vs loss 3,315,834 Revs 8,032,798 vs 7,276,517 .I 264 .C earn 1 .T MICRODYNE CORP SETS PAYOUT. .W OCALA, Fla., April 1 - Semi div three cts vs three cts prior Pay June 12 Record May 15 .I 268 .C interest 1 .T FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 1 - The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-123 days 5.00 pct 5.00 pct 30-123 days 124-150 days 5.90 pct 5.93 pct 124-150 days 151-349 days 5.00 pct 5.00 pct 151-349 days 350-360 days 5.96 pct 5.98 pct 350-360 days .I 270 .C earn 1 .T CROWNAMERICA INC 2ND QTR ENDED FEB 28. .W DALTON, Ga., April 1 - Shr two cts vs 29 cts Net 23,000 vs 338,000 Revs 20.2 mln vs 21.5 mln Six mths Shr 64 cts vs 97 cts Net 741,000 vs 1,113,000 Revs 43.2 mln vs 44.3 mln NOTE: 1986 2nd qtr and six mths ended March one. .I 272 .C earn 1 .T DIAMOND SHAMROCK SEES BETTER 1987 EARNINGS. .W NEW YORK, APRIL 1 - Diamond Shamrock Corp, which will split this month into two separate companies, expects to show improved earnings in 1987 over last year, executives of the new company told Reuters. Charles Blackburn, president and chief executive officer of Diamond Shamrock and the new company, which will emphasize exploration and production, said, "Earnings wil be better than in 1986." He declined to say how much better. In 1986 Diamond Shamrock reported a loss of 115.6 mln dlrs on total revenues of 2.543 billion dlrs. Exploration and production lost 18.5 mln dlrs on revenues of 593.5 mln dlrs. Roger Hemminghaus, Diamond Shamrock vice president and soon-to-be chief executive of the spin-off Diamond Shamrock Refining and Marketing Co, said, "Refining and marketing is a margin business. The margins will return and this will be a better year than 1986." In 1986, refining and marketing showed operating profits of 40.1 mln dlrs on revenues of 1.636 billion dlrs. "We are also expecting to be in the black in the first quarter (1987)," Heminghaus added. In the first quarter of 1986, the refining and marketing segment showed a loss of 27.1 mln dlrs on revenues of 492.1 mln dlrs. The executives were in New york for meetings with institutional investors aimed at increasing interest in the company's stock. On the New York Stock Exchange, Diamond Shamrock was trading at 16-1/4, down 1/4. Earlier this year, T. Boone Pickens offered 15 dlrs a share for Diamond Shamrock, and management countered with an offer at 17 dlrs and a decision to split off the refining and marketing operation to its shareholders. "Our advisors convinced us the market would give higher multiples for pure plays," Blackburn said. .I 273 .C earn 1 .T VMS STRATEGIC SETS INITIAL DIVIDEND. .W CHICAGO, April 1 - VMS Strategic Land Trust said it delcared an initial quarterly cash dividend of 30 cts a share, payable May 15 to shareholders of record April 20. The company also said that effective today it will be trading on the NASDAQ system under the symbol . .I 274 .C iron-steel 1 .T BETHLEHEM STEEL SETS PLATE PRICE INCREASES. .W BETHLEHEM, Pa., April 1 - Bethlehem Steel Corp said its base price for carbon plates and high-strength and low-alloy plates will be increased by 25 dlrs to 405 dlrs a short ton, effective July one. The company said its composite prices for alloy plates will also be increased 25 dlrs per ton on the same date, adding it does not publish its prices for this product. Bethlehem Steel said its composite prices for strip mill plates will be increased 15 dlrs a ton. .I 276 .C earn 1 .T EQUICOR SEES YEAR REVENUES TO TOP TWO BILLION. .W NASHVILLE, Tenn., April 1 - Equicor, Equitable HCA Corp, said that the company will likely attain revenues in excess of two billion dlrs in its first year of operations. The company, created last October with initial equity of 400 mln dlrs, is owned equally by the Equitable Life Assurance Society of the U.S. and Hospital Corp of America . Financial results for the first six months of the company's operations were not disclosed. Equicor provides employee group plans to 1,500 corporations nationwide. It said it aims to double its marketshare in five years from the about 3.5 pct of the employee benefits industry it controls. .I 277 .C acq 1 .T MACANDREWS/FORBES BEGINS REVLON OFFER. .W NEW YORK, April 1 - MacAndrews and Forbes Group Inc said it began an 18.50-dlr-a-share cash offer for all common stock of Revlon Group Inc it does not already own. The offer, which is being made by a wholly owned subsidiary, Revmac Acquisition Corp, is subject to financing and at least 28.5 mln shares being tendered, the company said. MacAndrews and Forbes, wholly owned by Ronald Perelman, chairman of Revlon Group, held about 31.8 pct of the voting power of Revlon as of March 27, a spokesman said. The stake includes about 15.1 pct of Revlon common and 95 pct of its series A preferred stock, he said. More .I 278 .C earn 1 .T ARCO UP ON HIGHER EARNINGS ESTIMATE. .W NEW YORK, April 1 - Atlantic Richfield Co's stock rose sharply after analyst Eugene Nowak of Dean Witter Reynolds Inc raised his earnings estmates of the company, traders said. ARCO jumped 1-3/4 to 81-3/4. Nowak said that based on an average oil price of 17 dlrs a barrel in 1987, the company should earn about 4.50 dlrs a share. Next year, based on an average oil price of 18 dlrs a barrel, ARCO should earn about five dlrs a share. The company earned 3.38 dlrs a share in 1986. "If oil prices should rise to an average of 20 dlrs a barrel," he said, "ARCO could record earnings of 6.50 dlrs a share. Nowak said his increased estimates come after the company told analysts yesterday that its first quarter earnings will comfortably cover its quarterly dividend requirement of one dlr a share. Nowak said, "The company has done an outstanding job reducing expenses, and ARCO is poised to generate greater earnings power." He said first quarter earnings will likely exceed the company's expectations stated yesterday and be in the 1.15-1.20 dlr-a-share range. .I 280 .C grain 1; corn 1; sorghum 1 .T U.S. SAID PROMISED BULK OF MAIZE EXPORT TO SPAIN. .W BRUSSELS, April 1 - The U.S. Has been promised a near monopoly of maize exports to Spain from third countries guaranteed under an agreement with the European Community, an EC official said. The official, who asked not to be named, told Reuters that the guarantee was given in an unpublished clause of the agreement. Under the accord, which began in January, third countries were guaranteed access for the next four years for two mln tonnes a year of maize to the Spanish market, as well as 300,000 tonnes of sorghum. However, the official said the U.S. Had been assured that almost all the exports would be reserved for its traders. The EC Commission is to ask member states to agree either a tender system to fix reduced import levies for the maize or to authorise direct imports by the Spanish intervention board. EC sources noted that under a tender system maize from outside the U.S. Would sometimes be offered on more favourable terms than that from the U.S. No Commission spokesman was immediately available for comment. .I 281 .C acq 1 .T DEAK INTERNATIONAL BUYS JOHNSON MATTHEY. .W NEW YORK, APRIL 1 - Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International said the purchase will expand Deak's operations into the precious metals and wholesale non-ferrous metals trading arenas. .I 282 .C acq 1 .T WALL STREET STOCKS/PUROLATOR COURIER . .W NEW YORK, April 1 - Purolator Courier Corp stock jumped 5-3/8 on a 40 dlr per share takeover offer from Emery Air Freight Corp , traders said. Purolator was trading at 40-1/4, 1/4 above the offer price. The Emery offer tops a 35 dlr per share buyout agreement E.F. Hutton LBO Inc reached with Purolator February 27. That offer was to have expired today. Neither Hutton nor Purolator had any immediate comment. "There's probably some speculation out there that there might be another offer," said one analyst. .I 283 .C grain 1; corn 1 .T ARGENTINE CORN SALES TO USSR LOWER - USDA REPORT. .W WASHINGTON, April 1 - Total corn sales by Argentina to the Soviet Union are only 1.5 to 1.8 mln tonnes, with delivery spread out from March to June, the U.S. Agriculture Department's Counselor in Buenos Aires said in a field report. The report, dated March 27, said many sources have stated that the Soviet Union was initially interested in purchasing 2.3 mln tonnes lof corn from Argentina. However, Soviet purchases from the United States have tended to displace additional Argentine purchases, the report said. The USDA has to date reported USSR purchases of 2.6 mln tonnes of U.S. corn for delivery in the current U.S.-USSR grain agreement year, which ends this September 30, it said. .I 287 .C earn 1 .T BARNES GROUP EXPECTS SALES TO GROW MODESTLY. .W HARTFORD, Conn., April 1 - Barnes Group said it expects sales and net income for 1987 will be up slightly over 1986. Without supplying specific figures, Barnes told shareholders at its annual meeting it expected net income to improve at a rate exceeding its growth in sales, which was two pct higher than 1985. The company said it recorded income from continuing operations of 16.6 mln dlrs, or 2.57 dlrs per share, on sales of 440 mln dlrs in 1986. It said it recorded income from continuing operations of 16.4 mln dlrs, or 2.27 dlrs per share, in the previous year. .I 289 .C earn 1 .T ROADWAY MOTOR PLAZAS INC 3RD QTR JAN 31. .W ROCHESTER, N.Y., April 1 - SHr two cts vs one cts Net 116,843 vs 41,400 Revs 17.3 mln vs 12.3 mln Nine months SHr 15 cts vs 10 cts Net 639,448 vs 301,000 REvs 37.6 mln vs 35.8 mln .I 291 .C earn 1 .T DIONICS INC YEAR NET. .W WESTBURY, N.Y., April 1 - Shr seven cts vs 10 cts Net 127,000 vs 168,100 Revs 2,807,400 vs 3,042,900 .I 292 .C earn 1 .T WINN-DIXIE STORES INC SETS MONTHLY PAYOUT. .W JACKSONVILLE, Fla., April 1 - Mthly div 15 cts vs 15 cts prior Pay April 30, May 29, June 24 Record April 15, May 15, June 10 .I 295 .C earn 1 .T WAXMAN INDUSTRIES INC REGULAR PAYOUT. .W BEDFORD HEIGHTS, Ohio, April 1 - Qtly div class A two cts vs two cts prior Qtly div class B one ct vs one ct prior Pay April 17 Record April 10 .I 296 .C acq 1 .T DEAK BUYS JOHNSON MATTHEY COMMODITIES. .W NEW YORK, APRIL 1 - Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International, said the purchase will expand Deak's operations in the precious metals and wholesale non-ferrous metals trading arenas. .I 301 .C interest 1 .T IIF EXECUTIVE SEES INTEREST RATES DECLINING. .W WASHINGTON, April 1 - Institute of International Finance Managing Director Horst Schulmann said that his orgnaization has been forecasting further declines of interest rates in the first half this year and then a levelling off and there is no reason to change that. Speaking to reporters, the bank research group said that the increase in interest rates announced yesterday and other activity in the foreign exchange markets did not indicate a fundamental change in the outlook. Schulmann, speaking broadly about the global debt problem, said that the International Monetary Fund should increase its assistance to third world countries. The remarks come just before next week's meeting of the IMF's Interim Committee and the Joint Development Committee of the IMF and World Bank. In a letter to the committee's, the bank group said, "Commercial banks cannot be the dominant supplier of balance of payments finance." Schulmann said that IMF exposure peaked in 1985 and has declined a bit since then. .I 304 .C oilseed 1; rapeseed 1 .T JAPANESE CRUSHERS BUY CANADIAN RAPESEED. .W WINNIPEG, April 1 - Japanese crushers bought 5,000 to 6,000 tonnes of Canadian rapeseed for May shipment in export business overnight, trade sources said. .I 305 .C earn 1 .T WALKER TELECOMMUNICATIONS CORP 4TH QTR. .W HAUPPAUGE, N.Y., April 1 - Shr loss 58 cts vs loss nil Net loss 2.9 mln vs loss 17,818 Revs 5.0 mln vs 7.4 mln Year Shr loss 45 cts vs profit four cts Net loss 2.0 mln vs profit 174,562 REvs 28.5 mln vs 25.2 mln NOTE:1986 4th qtr loss includes loss of 2.2 mln dlrs from discontinuance of operations. 1985 4th qtr includes loss of 79,395 dlrs from discontinued operations. 1986 4th qtr includes 3.5 mln dlr provision for costs anticipated in connection with disposal of division and 500,000 dlrs in adjustments related to write-downs. 1985 4th qtr includes gain of 178,000 dlrs for exchange of telephone inventory for barter credits. .I 306 .C earn 1 .T BROKERS SECURITIES INC 4TH QTR LOSS. .W NORFOLK, Va., April 1 - Shr loss 16 cts vs profit 23 cts Net loss 97,600 vs profit 91,980 Revs 302,745 vs 359,699 Avg shrs 621,036 vs 388,536 Year Shr profit seven cts vs profit 36 cts Net profit 36,400 vs profit 140,980 Revs 1,610,286 vs 763,071 Avg shrs 512,235 vs 388,536 Note: Year-ago net includes extraordinary gains of 33,654 for qtr and 42,654 for the year. .I 307 .C earn 1 .T FIRST WORLD CHEESE INC 4TH QTR LOSS. .W SOUTH ORANGE, N.J., April 1 - Shr loss 15 cts vs profit nil Net loss 392,428 vs profit 1,255 Revs 6,371,092 vs 3,031,091 Avg shrs 2,544,000 vs 1,440,000 Year Shr loss 13 cts vs profit seven cts Net loss 274,951 vs profit 100,534 Revs 18.1 mln vs 10.8 mln Avg shrs 2,072,153 vs 1,440,000 .I 308 .C cpi 1 .T YUGOSLAV RETAIL PRICES UP 7.0 PCT IN MARCH. .W BELGRADE, April 1 - Yugoslav retail prices in March rose 7.0 pct from February, to stand 93.2 pct higher than in March 1986, Federal Statistics Office (FSO) figures show. In February, retail prices rose 7.2 pct from January to stand 91.6 pct higher than in February 1986. The cost of living, which includes rents and costs such as utilities and transport, was up 7.8 pct in March from February to stand 94.8 pct higher than in March 1986, the FSO said. In February the cost of living increased 7.3 pct from January and stood 93.6 pct higher than in February 1986. .I 309 .C ship 1; grain 1 .T GRAIN SHIPS WAITING AT NEW ORLEANS. .W New Orleans, April 1 - Ten grain ships were loading and 18 were waiting to load at New Orleans elevators, trade sources said. ELEVATOR LOADING WAITING Continental Grain, Westwego 1 3 Mississippi River, Myrtle Grove 2 0 ADM Growmark 1 4 Bunge Grain, Destrehan 1 0 ELEVATOR LOADING WAITING ST CHARLES DESTREHAN 1 3 RESERVE ELEVATOR CORP 0 1 PEAVEY CO, ST ELMO 1 2 CARGILL GRAIN, TERRE HAUTE 1 4 CARGILL GRAIN, PORT ALLEN 1 0 ZEN-NOH 1 1 .I 311 .C acq 1 .T J.C. PENNEY TO BUY EQUITY IN BEEBA'S. .W NEW YORK, April 1 - J.C. PEnney Co Inc said it signed a letter of intent to acquire one mln shares, or a 20 pct equity interest, of Beeba's Creations Inc for 18.75 dlrs a share. Penney said the agreement also calls for Beeba's, a major supplier of junior sportswear, to work with Penny in the establishment of junior specialty shops to be created in about 100 Penney stores in early 1988. Freestanding stores are also being planned, the company said. Beeba's will be the principal source of merchandise to the shops, it said. For the six months ended February 28, Beeba's reported net income of 1.2 mln dlrs on sales of 39.4 mln dlrs. Penney said it will establish an independent merchandising and marketing organization to manage and support the shops which will be staffed by personnel both from within and outside the company. The company said the new agreement would have no impact on its current supplier base and it will continue to work with as braod base of suppliers of junior sportswear as it does in its other merchandise areas. .I 312 .C interest 1 .T AUSTRIAN BANKS DIVIDED OVER INTEREST RATE CUT. .W VIENNA, April 1 - Calls for a cut in Austrian interest rates have grown in recent days but bank chiefs are divided over the issue. Karl Vak, General Director of the Zentralsparkasse und Kommerzialbank, Wien, called today for a cut of up to half a percentage point in interest rates across the board. But Hannes Androsch, head of Creditanstalt-Bankverein told Reuters he opposed a cut because it would hurt small savers. Vak told a news conference that last January's cut in lending rates for commercial customers and for all depositors by a quarter point had been insufficient. The January cut followed the National Bank's lowering of its discount and Lombard rates by half a point in line with a similar Bundesbank move. Prime lending rate is now 8.75 pct and deposit rates vary between 3.25 and 5.75 pct. Yesterday Hellmuth Klauhs, head of the Genossenschaftliche Zentralbank AG, said rates could fall at least a quarter of a point, or even half a point if German rates dropped further. Vak noted that inflation had fallen below one pct. A widening gap between Austrian rates and cheaper West German credit along with forecasts of slow Austrian economic growth this year also justified a further interest drop, he said. Karl Pale, head of Girozentrale und Bank der oesterreichischen Sparkassen AG [GIRV.VI] has also called for lower deposit rates but said lending rates should remain unchanged at the moment. Interest margins were too small, particularly when compared with other West European countries. But Hans Haumer, head of the Erste Oesterreichische Spar-Casse-Bank told Reuters that no cut should be made unless West German rates came down first. Banking sources said no bank seemed ready to lower rates alone and supporters of a cut would have difficulty overcoming opposition from Creditanstalt, Austria's biggest bank. .I 313 .C earn 1 .T A.G. EDWARDS INC 4TH QTR FEB 28 NET. .W ST. LOUIS, April 1 - Shr 81 cts vs 63 cts Net 16,900,000 vs 13,100,000 Revs 152.5 mln vs 118.1 mln Year Shr 2.59 dlrs vs 1.85 dlrs Net 53,700,000 vs 38,100,000 Revs 526.3 mln vs 404.3 mln NOTE: Prior year earnings reflect a three-for-two stock split distributed in May, 1986 .I 315 .C acq 1 .T PERIPHERAL SYSTEMS AGRESS TO BUY COMPANY. .W PORTLAND, Ore., April 1 - Peripheral Systems Inc said it agreed in principle to acquire the outstanding shares of . The agreement calls for an exchange of one share of Peripheral for each share of Nucell, subject to approval by both companies' boards, it said. Peripheral said its increased involvement in the development of Nucell's nuclear battery technology made the merger practical. .I 319 .C interest 1 .T MANUFACTURERS NATIONAL UNIT LIFTS RATE. .W DETROIT, April 1 - Manufacturers National Corp's Manufacturers Bank-Wilmington said it increased the interest rate on its no-fee variable rate MasterCard to 13.6 pct from 13.3 pct. The new interest rate applies to the second quarter. The rate on the card is set quarterly. .I 321 .C acq 1 .T FIRST CHICAGO UNIT BUYS BANKS. .W CHICAGO, April 1 - First Chicago Corp's American National Bank unit said it completed the acquisition of four suburban Chicago banks with combined assets of about 231 mln dlrs. The banks are National Bank of North Evanston, Elgin National bank, First National Bank of Schiller Park and Merchants and Manufacturers State Bank in Melrose Park. American National now owns nine banks. .I 322 .C acq 1 .T CENTERRE ACQUIRES BENEFIT PLAN SERVICES. .W ST. LOUIS, April 1 - Centerre Bancorp said it completed the acquisition of Benefit Plan Services Inc, Maryland Heights, Mo., which specializes in designing and administering small and moderately sized pension plans. Terms were not disclosed. .I 324 .C stg 1 .T ******LAWSON TELLS PANEL HE WANTS STERLING TO STAY AROUND 1.60. .W DLRS, 2.90 MARKS. .I 326 .C earn 1 .T CONOLOG CORP 2ND QTR JAN 31 NET. .W SOMERVILLE, N.J., April 1 - Shr two cts vs two cts Net 69,831 vs 107,773 Revs 1,068,905 vs 2,401,518 Six mths Shr three cts vs three cts Net 129,649 vs 155,089 Revs 2,673,141 vs 4,666,104 .I 329 .C interest 1 .T BANKERS TRUST RAISES PRIME LENDING RATE. .W NEW YORK, April 1 - Bankers Trust Co said it has raised its prime lending rate to 7-3/4 pct from 7-1/2, effective immediately. This move is the latest in a series of similar actions by leading U.S. money center banks, including Citibank NA and Chase Manhattan Bank NA, over the last 24 hours. AmeriTrust Corp of Ohio also raised its prime lending rate to 7-3/4 pct from 7-1/2, effective tomorrow. .I 330 .C interest 1 .T BOATMEN'S NATIONAL BANK RAISES PRIME. .W ST. LOUIS, April 1 - Boatmen's Bancshares said its Boatmen's National Bank raised the prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 334 .C acq 1 .T UNICORP VOTING STAKE HIKED IN UNION ENTERPRISES. .W TORONTO, April 1 - said holders of 7.2 mln or 80 pct of its class A series one preferred shares requested to retract their shares under terms of the issue, thus raising 's voting stake in Union to 58 pct from 50. Union said it paid about 90 mln dlrs on April 1 for the retraction, using existing credit lines. .I 338 .C earn 1 .T STARRETT HOUSING CORP 4TH QTR NET. .W NEW YORK, April 1 - Oper shr 20 cts vs eight cts Oper net 1,869,000 vs 957,000 Revs 41.0 mln vs 22.9 mln Year Oper shr 52 cts vs 53 cts Oper net 5,386,000 vs 5,147,000 Revs 116.8 mln vs 98.3 mln Note: Oper excludes extraordinary reserves related to arbitration of Iranian claims of 2,062,000 vs 3,200,000 for qtr and year. .I 340 .C interest 1 .T FIRST WISCONSIN NAT'L BANK HIKES PRIME RATE. .W MILWAUKEE, April 1 - First Wisconsin National Bank said it has raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective today. .I 342 .C earn 1 .T GAC LIQUIDATING TRUST SETS CASH PAYOUT. .W CORAL GABLES, Fla., April 1 - Unit distribution one dlr vs 1.75 dlrs prior pay June one Record May one Note: Prior distribution declared in April 1986. .I 343 .C earn 1 .T WRATHER CORP 4TH QTR LOSS. .W BEVERLY HILLS, Calif., April 1 - Shr loss 53 cts vs loss 55 cts Net loss 3,865,000 vs 3,963,000 Revs 24.2 mln vs 26.8 mln Year Shr loss 1.21 dlrs vs profit 56 cts Net loss 8,758,000 vs profit 4,040,000 Revs 108.5 mln vs 113.8 mln Note: Prior qtr figures include income from discontinued operations of 10,000 dlrs, gain on disposal of discontinued operations of 269,000 dlrs, or four cts per share, and operating loss carryforward gain of 936,000 dlrs, or 13 cts per share. Prior year figures include income from discontinued operations of 164,000 dlrs, or two cts per share, gain on disposal of discontinued operation of 3.9 mln dlrs, or 54 cts per share, and operating loss carryforward gain of 3.7 mln dlrs, or 48 cts per share. .I 345 .C sugar 1 .T EC SUGAR IMPORT LEVIES. .W BRUSSELS, April 1 - The following import levies for white and raw sugar are effective tomorrow, in European currency units (ecu) per 100 kilos. White sugar, denatured and non-denatured 51.94 versus 51.36 previously. Raw sugar, denatured and non-denatured 44.05 versus 43.69 previously. The rate for raws is based on 92 pct yield. .I 347 .C earn 1 .T MURPHY OIL CORP SETS REGULAR DIVIDEND. .W EL DORADO, Ark., April 1 - Qtly div 25 cts vs 25 cts prior Pay June one Record May 15 .I 349 .C money-fx 1; stg 1 .T LAWSON WANTS STERLING AROUND 1.60 DLRS, 2.90 MKS. .W LONDON, April 1 - U.K. Chancellor of the Exchequer Nigel Lawson said he wanted sterling to stay roughly where it was, specifying a rate of around 2.90 marks and 1.60 dlrs. He told the National Economic Development Council that the recent Paris meeting of major industrialised nations had agreed on the need for exchange rate stability. There was now a "reasonable alignment of currencies" and the U.K. Government intended to keep sterling at about its present level, he said. That meant around 2.90 marks, which is the single most important rate to concentrate on, and 1.60 dlrs, Lawson said. His disclosure of two of the key targets for sterling was highly unusual, foreign exchange market analysts said. In the past he has preferred to be less definite about the Government's exchange rate policy, lest it give foreign exchange markets set limits to test. Lawson told the committee, which is a tripartite forum of government, unions and industry, that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks. His disclosure of two of the key targets for sterling was highly unusual, foreign exchange market analysts said. In the past he has preferred to be less definite about the Government's exchange rate policy, lest it give foreign exchange markets set limits to test. Lawson told the committee, which is a tripartite forum of government, unions and industry, that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks. .I 350 .C interest 1 .T NEW VENEZUELA DEBT INTEREST RATE GOES INTO EFFECT. .W CARACAS, April 1 - The new interest rate of 7/8 pct over Libor on Venezuelan public sector debt payments goes into effect today, Finance Minister Manuel Azpurua said . Azpurua told reporters yesterday the reduction from the previous margin of 1-1/8 pct above Libor will save the country some 50 mln dollars in debt servicing. The new rate is among changes agreed last month to the 20.3 billion dlr public sector debt rescheduling. Under the new agreement, Venezula was also able to extend the term from 12 to 14 years and to lower debt payments in the 1987-89 period by 64 pct. Azpurua said that according to the agreement, the new interest rate will be retroactive to April 1, provided the accord is approved before October 1. He told reporters the term sheet detailing the changes in the rescheduling has already been endorsed by the 13-member debt steering committee and is now being sent to the country's 460 creditor banks for their approval. The new agreement replaces a rescheduling accord signed in February 1986, which Venezuela asked to revise to reflect a 45 pct drop in oil revenues. .I 353 .C interest 1 .T SUNTRUST BANKS RAISES PRIME TO 7-3/4 PCT. .W NEW YORK, April 1 - SunTrust Banks said that Sun Banks in Florida and Trust Co banks in Georgia have raised their prime rate to 7-3/4 pct from 7-1/2 pct. The company said the action is effective immediately. .I 355 .C acq 1 .T HORN/HARDART UNIT DISPOSES 33 RESTAURANTS. .W LAS VEGAS, Nev., April 1 - Horn and Hardart Co said it disposed of 33 Bojangles' Chicken 'N Biscuits restaurants in Florida as part of its previously announced retrenchment of its Bojangles' subsidiary. Terms were not disclosed. The company said the restaurants in Orlando, Tampa and Jacksonville markets have incurred the majority of Bojangles' operating losses over the last two years. Due to the transaction, Horn and Hardart is projecting a positive cash flow for the unit for the remainder of fiscal 1987. A spokesman said the disposition consists of a combination of sale, lease and re-franchise agreements. The transaction involves one-quarter of the company-owned Bojangles' restaurants and is in accordance with its restructuring program announced in October 1986. A spokesman said the company is considering the sale or spinoff of the 91-company owned additional restaurants, which are profitable. The company said the disposition will result in no profit or loss for the company because the costs were anticipated in a 34-mln-dlr reserve taken in the third quarter of 1986. The foodservice division, which includes Burger King, Arby's and Tony Roma's, had a pre-tax operating loss of 29.6 mln dlrs in 1986, including the 34.0 mln dlr charge to restructure Bojangles. Excluding Bojangles', the group had revenues of 43.8 mln dlrs. The company said that, pursuant to the restructuring, it has cut general and administrative expenses attributable to Bojangle' by 35 pct. .I 356 .C earn 1 .T MULTIBANK FINANCIAL CORP IN PAYOUT. .W DEDHAM, Mass., April 1 - Qtly div 13 cts vs 13 cts prior Pay April 20 Record April 10 .I 359 .C interest 1 .T FIRST BANK SYSTEMS UNITS HIKE RATE. .W MINNEAPOLIS, April 1 - First Bank Minneaplois and First Bank Saint Paul, both units of First Bank Systems Inc, said they raised their reference rates to 7-3/4 pct from 7-1/2 pct. .I 360 .C acq 1 .T CHEMICAL FABRICS AGREEMENT TERMINATED. .W MEWRRIMACK, N.H., April 1 - Chemical Fabrics Corp said an agreement in principle under which OC Birdair Inc would have purchased assets related to the architectural structures business of Dow Corning corp's ODC Inc division has been terminated. Under that agreement, Chemical Fabrics would also have become distributor of Dow Corning's Vestar silicone-coated fiberglass architecural fabrics. OC Birdair is a joint venture of Chemical Fabrics and Owens Corning Fiberglas Corp and Down Corning a venture of Dow Chemical Co and Corning Glass Works . Chemical Fabrics said once the current project backlog of Dow Corning's ODC division is completed, Dow Corning plans to discontinue its design-engineering, fabrication and installation services. Chemical Fabrics said the companies will cooperate on the development of new products for architectural and industrial applications and may supply architectural materials to each other. .I 361 .C acq 1 .T SIS COMPLETES WENDY'S UNIT BUY. .W WESTLAKE, Ohio, April 1 - SIS Corp said it has completed the acquisition of its franchisor Sisters International Inc from Wendy's International Inc for 14.5 mln dlrs in stock. It said the purchase includes 35 restaurants in Ohio operates by Sisters, giving SIS a total of 55 restaurants, and franchise relationships in six Midwestern and Southern states. .I 363 .C sugar 1 .T BRITISH SUGAR SOWINGS OFF TO SLOW START. .W LONDON, April 1 - Drilling of this year's British sugar beet crop got off to a slow start due to poor weather conditions with only around one pct sown so far, a spokesman for British Sugar Plc said. This compares with two pct at the same stage last year, three pct in 1985 and 38 to 39 pct in 1984. There is little cause for concern with better weather forecast and the capacity available to drill the contracted area of around 200,000 hectares in about 10 days. Seed beds look good and farmers are advised to wait for soil temperatures to rise, the spokesman said. "If the crop can be drilled by the third week in April we will be delighted," he said. Last year a large proportion of the crop was not drilled until May but it still turned out to be the equal second largest on record. .I 364 .C dlr 1; money-fx 1 .T CURRENCY INTERVENTION TIMING CRUCIAL - ANALYSTS. .W NEW YORK, April 1 - The dollar's recent decline, despite massive central bank purchases, is a forceful reminder that official intervention in the foreign exchanges can work only if it is well-timed to coincide with shifts in market fundamentals or sentiment, dealers and analysts said. Central banks may succeed in slowing a trend, but, without accompanying policy changes, they stand little chance of reversing the direction of an ever-growing global market in which more than 200 billion dlrs is traded every day, the sources said. "Timing and psychology are the key to successful intervention," said Jim O'Neill, a financial markets economist with Marine Midland Banks Inc. The importance of complementary changes in economic fundamentals was underlined yesterday when a change in interest rates boosted the dollar, instantly achieving what the central banks had tried in vain to do for a week through open market intervention. After Citibank raised its prime rate by a quarter-point to 7-3/4 pct, the first change in the rate since last August, the dollar started to advance and reached a high in Tokyo of 147.50 yen, up two yen from Tuesday's New York low. By contrast, monetary authorities spearheaded by the Bank of Japan are estimated to have bought as much as 10 billion dlrs in the last 10 days of March but could not prevent the dollar from skidding through 150 yen and plumbing a 40-year low Monday of 144.70 yen. Some experts worry the central banks have lost more than just a temporary battle to prop up the dollar. The market is wary of being caught wrong-footed by a central bank foray, but is no longer mesmerized. "They've lost their credibility. The market feels it can take on the central banks and win," said Michael Snow, head of treasury operations at Union Bank of Switzerland in New York. The relative failure of recent intervention stands in sharp contrast to the success that central banks scored when they joined forces to drive the dollar down following the September 22, 1985, Plaza accord. Then, however, central banks had an easy time of it, because the markets and the Treasuries of the major industrial powers were agreed that the dollar needed to head lower to redress massive worldwide trade imbalances. Now, there is no such consensus. The market is saying that the dollar must fall further because the U.S. trade deficit is showing little sign of improvement, while Japan is resisting in a bid to protect its export industries. For its part, the United States is apparently content to let the dollar fall gradually further and is paying little more than lip service to the February Paris agreement of the Group of Five plus Canada to foster stability, dealers say. Specifically, they said the Fed's dollar-buying intervention has been half-hearted, designed more as a political gesture to Japan than to strike fear into the markets. "It's been pro-forma intervention," said Francoise Soares-Kemp, chief corporate trader at Credit Lyonnais. Because of this discord and the market's momentum for a lower dollar, analysts said intervention looks doomed to fail. "It's going to take a lot more than the central banks to hold the dollar (at these levels)," said Snow, who predicts another 10 to 15 pct depreciation. "There have to be structural changes that occur to make the market stop selling dollars," added "Buying six billion dollars in three weeks is not going to do it." Late last decade during the presidency of Jimmy Carter, when the dollar was last under heavy speculative attack, central banks sometimes intervened to the tune of six billion dlrs in a single day but still failed to stop the dollar falling to a record low of 1.70 marks, analysts said. Snow said purchases on that scale now are unlikely. "I don't think anybody has the stomach for it, because they saw the futility of it in the seventies." Indeed, because the market has grown in leaps and bound since then, intervention on an even greater scale would probably be needed to impress the market. Trading volume in London, New York and Tokyo alone last year averaged nearly 188 billion dlrs a day, according to a joint central bank study, about double the previous estimate made just two years earlier by the Group of Thirty private research group. There are signs that central banks, too, realize the futility of swimming against the tide. Bank of Japan sources told Reuters in Tokyo earlier this week that they believed the limits of currency market intervention are perhaps being reached and that other methods for bolstering the dollar, such as invoking currency swap agreements with other central banks, are being considered. "In this era of financial liberalization, it's almost impossible to control the flow of capital in and out of Japan," one senior official in Tokyo said. .I 366 .C acq 1 .T CANADIAN TIRE MAJOR HOLDERS NOT EXTENDING PACT. .W TORONTO, April 1 - CTC Dealer Holdings Ltd said controlling shareholders Alfred, David and Martha Billes did not extend an agreement expiring yesterday to tender their shares only to CTC's previously reported offer for 49 pct of Canadian Tire common shares. CTC, which already holds 17.4 pct of Canadian Tire common, said it would therefore not take up any shares tendered under its offer unless they totaled at least 1.1 mln or another 32.7 pct of Canadian Tire common. The Billes control 60 pct of Canadian Tire common. It added that it extended its offer to May 11 at a fixed price of 165.36 dlrs a share. CTC, a group of Canadian Tire dealers, said it expected to know by May 11 if it would obtain approval to appeal a previously reported Ontario court ruling upholding a regulatory decision to block CTC's offer. The dealers' bid was previously blocked by the Ontario Securities Commission because the offer excluded holders of Canadian Tire class A non-voting shares, which make up about 96 pct of company equity. .I 367 .C acq 1 .T ******HUTTON LBO EXTENDS EXPIRATION FOR 35 DLR/SHR OFFER FOR. .W PUROLATOR TO APRIL 6 FROM TODAY .I 368 .C acq 1 .T ******CONRAC SAYS IT IS MULLING RESTRUCTURING OR BUYOUT AS. .W ALTERNATIVES .I 373 .C dlr 1; money-fx 1; yen 1 .T CHIRAC SAYS FRANCE RESOLVED TO SUPPORT CURRENCY PACT. .W WASHINGTON, April 1 - French Prime Minister Jacques Chirac said that on financial issues, the United States and France had "very close" views, and he said Treasury Secretary James Baker was determined to support the February 22 Paris agreement on stabilizing foreign exchange parities. "I was very reassured by the determination of Mr. Baker to support this agreement," he said. He described the dollar's sharp fall against the yen at the start of the week as a "passing incident" and added, "Everyone is resolved to support the Paris accord." Questioned about his plan to help the world's poorest countries, Chirac said he did not envisage any large-scale debt write-offs. "I don't think we can talk of write-offs - even the poorest countries have not asked for that," he said. Chirac said he wanted commercial banks to give third world countries better terms in rescheduling their debts, and for the International Monetary Fund to soften its conditions. "One cannot pity the banks - they bear a lot of responsibility due to the encouragement they gave to these countries to take on debts. Now the banks are complaining but I do not weep for them." .I 374 .C acq 1 .T CONRAC EXPLORING RESTRUCTURING, BUYOUT. .W WASHINGTON, April 1 - Conrac Corp, whose board has rejected a 25 dlr a share tender offer from Mark IV Industries Inc , said it is exploring alternatives such as a restructuring, leveraged buyout or takeover of the company. In a filing with the Securities and Exchange Commission, Conrac said its board of directors authorized its financial and legal advisors to explore a several alternatives to the Mark IV offer, which it said it considers inadequate. The alternatives being explored include a restructuring, leveraged buyout or a takeover of the company by another company, Conrac said. Conrac, which said its board discussed the alternatives at special meetings on March 26 and 30, said that its decision on whether to adopt any of the alternatives would hinge on "the future actions of Mark IV" and its unsolicitied tender offer. Putting into effect any of the alternatives being explored could hurt or defeat the Mark IV offer, it said. Board members were also instructed to keep confidential the terms of any transaction that might be entered into until it becomes final, the company said. The board also took other defensive steps, including granting severance agreements to some officers, it said. At a board meeting yesterday, Concac's directors deleted a provision allowing the holder of at least one-third of of all classes of its voting stock to call a special shareholders meeting and deleted another provision allowing shareholders to remove directors without cause, the company said. The defensive moves were taken because Mark IV had said it planned to elect a majority of its designees as directors at a special holders meeting if it succeeded in acquring a majority of the company's common stock in the offer, Conrac said. Conrac's president, vice president and treasurer were given severance agreements, or "golden parachutes," it said. Under the agreements, Conrac President Paul Graf would get a cash payment of twice his annual salary, which was 209,906 dlrs last year, if there were a change of control in the company, including acquisition of 30 pct or more of the company's voting stock, Conrac said. Treasurer Joseph Smorada and Vice President Joseph O'Donnell, who made 143,325 dlrs last year, would get one-and-a-half times his salary if there were a change in control. Smorada's salary was not listed in the SEC filing. The executives would also get cash settlements of options plans and continuation of insurance and other benefits. .I 375 .C interest 1 .T MORE U.S. BANKS JOIN IN PRIME RATE CUT. .W NEW YORK, April 1 - Chemical Bank, the main bank subsidiary of Chemical New York Corp, and Marine Midland Banks Inc said they were raising the prime lending rate to 7-3/4 pct from 7-1/2 pct, effective immediately. In St Louis, Mercantile Bancorp said its Mercantile Bank N.A. was also raising its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. The changes follow similar cuts yesterday by Citicorp and Chase Manhattan. .I 377 .C earn 1 .T CONVEST ENERGY PARTNERS LTD 4TH QTR LOSS. .W HOUSTON, April 1 - Shr loss 2.65 dlrs vs loss 2.31 dlrs Net loss 14.3 mln vs loss 12.5 mln Revs 2,887,000 vs 5,321,000 Year Shr loss 4.38 dlrs vs loss 2.50 dlrs Net loss 23.7 mln vs loss 13.5 mln Revs 13.2 mln vs 22.4 mln NOTE: 1986 net includes oil and natural gas writedowns of 12.1 mln dlrs in quarter and 19.0 mln dlrs in year. .I 378 .C earn 1 .T YEAR JAN 31 NET. .W Toronto, April 1 - Shr 51 cts vs one dlr Net 25.1 mln vs 46.8 mln Sales 1.21 billion vs 1.08 billion Note: 1986 excludes extraordinary gain of 1.1 mln dlrs, or two cts per share, from public issue of affiliate's shares. .I 380 .C coffee 1 .T ICO TALKS SET TO END WITH NO QUOTA DEBATE. .W LONDON, April 1 - The International Coffee Organization executive board meeting will end tomorrow without any move to reopen the debate on restoring coffee export quotas, delegates said. Talks have focused on administrative matters and verification of stocks in producer countries, they said. Producers met briefly today to exchange views on the market situation but there seems little chance discussion on quotas will begin much before the ICO's annual council session in September, they said. Delegates earlier thought the meeting would end tonight, but a further session is scheduled tomorrow at 1030 GMT to complete reports on stock verification. Meantime, the executive board will meet May 12 to discuss possible action on the consultancy report on the ICO presented today to the board, consumer delegates said. .I 381 .C earn 1 .T INTERNATIONAL SEAWAY TRADING CORP YEAR. .W CLEVELAND, Ohio, April 1 - Oper shr 64 cts vs 97 cts Oper net 845,000 vs 1,285,000 Revs 20.0 mln vs 23 mln NOTE: 1986 and 1985 oper net excludes gain of 315,000 dlrs and 585,000 dlrs, respectively, for extraordinary item. .I 382 .C earn 1 .T CALLON PETROLEUM CO 4TH QTR LOSS. .W NATCHEZ, Miss., April 1 - Shr loss 40 cts vs loss 4.72 dlrs Net loss 3,321,000 vs loss 42.0 mln Revs 4,002,000 vs 7,788,000 Avg shrs 9,168,522 vs 8,974,355 Year Shr loss 4.20 dlrs vs loss 4.71 dlrs Net loss 37.2 mln vs loss 41.1 mln Revs 18.4 mln vs 34.1 mln Avg shrs 9,168,522 vs 8,991,184 .I 383 .C earn 1 .T COUNTY SAVINGS BANK SETS STOCK DIVIDEND. .W SANTA BARBARA, Calif., April 1 - County Savings Bank said its board declared a five pct stock dividend, payable April 10 to shareholders of record today. .I 384 .C acq 1 .T E.F.HUTTON EXTENDS PUROLATOR OFFER. .W New York, April 1 - E.F. Hutton Group's E.F. Hutton LBO Inc unit said it extended the expiration date for its 35 dlr per share tender offer for Purolator Courier corp to midnight EST April six from midnight April one. E.F. Hutton lbo inc said its wholly owned PC Acquisition Inc subsidiary, which is the entity making the offer, extended both expiration date and the withdrawal rights period for its pending tender for 6.3 mln shares or 83 pct of Purolator common. Hutton's offer was topped today by a 40 dlr per share bid for 83 pct of the stock from Emery Air Frieght Corp Both offers would pay shareholders a package of securities for the balance of their shares, valued at the respective tender offer prices. Hutton said as of the end of the day yesterday, about 880,000 shares of Purolator common stock repesenting 11.5 pct of outstanding shares had been validly tendered and not withdrawn. Manhattan supreme court justice Lewis Grossman today adjourned until Monday a hearing on a stockholder suit seeking to block the Hutton LBO transaction. The judge told attorneys he needed time to hear other cases. Plaintiffs cited their belief that a superior offer would be forthcoming, however one company mentioned in an affadavit, Interlink Express plc, denied that it was interested. Yesterday, Frank Hoenemeyer, a retired vice chairman of Prudential Insurance Co and currently a Purolator board member, said an initial offer from Hutton was rejected by the board of directors February third. Hoenemeyer testified that by the next meeting of the board, February 17, Hutton submitted a revised proposal which was accepted. He also testified a committee of directors had hired Goldman Sachs and Co to consider alternatives to the Hutton offer and also to consider a discussion of possible mergers with other companies including Emery and Federal Express Corp . .I 387 .C earn 1 .T BANKAMERICA TO POST GAIN ON UNIT SALE. .W SAN FRANCISCO, April 1 - BankAmerica Corp said it completed the sale of its Consumer Trust Services division to Well Fargo and Co , a transaction that will result in a second quarter pre-tax gain of more than 75 mln dlrs. The sale will not affect the services the bank will continue providing to institutional customers through its Employee Benefit Trust Services Division, BankAmerica also said. In a separate announcement, Wells Fargo said the acquisition will increase the amount of personal trust assets it administers to 25 billion dlrs. Last December BankAmerica and Wells Fargo announced a definitive agreement on the sale at a price of about 100 mln dlrs, subject to adjustment. .I 388 .C oilseed 1; grain 1; corn 1; soybean 1; sunseed 1 .T HEAVY RAINS DAMAGE ARGENTINE COARSE GRAINS CROP. .W By Manuel Villanueva BUENOS AIRES, April 1 - Fresh, heavy rains caused further damage to the Argentine 1986/87 coarse grains crop in the week to yesterday, particularly in Buenos Aires province, trade sources said. They said the sunflower, maize, soybean and sorghum crops were damaged and yield estimates affected. New production forecasts were made for all these crops. The rains over the weekend and up to yesterday registered more than 200 mm on average in western Buenos Aires and worsened the flooding in various parts of the province. The weather bureau said the rains, which in Buenos Aires have surpassed 750 mm in the last 30 days, could continue. The northeast of the country was also hit by heavy rains. In Corrientes province the rains also passed an average of 200 mm in some parts, notably the Paso de los Libres area bordering on Uruguay. In Santa Fe and Entre Rios provinces they were over 100 mm in places, in Misiones and San Luis 90 mm and in Cordoba 80 mm. The rains were less intense in Chaco and Formosa. Harvesting in areas not actually under water could also be further delayed due to dampness in the earth, the sources said. The excessive humidity might also produce rotting of the crops, further dimishing the yield, the sources added. Sunflower harvesting before the weekend rains reached 26 to 30 pct of the area sown in Santa Fe, Cordoba, La Pampa and Buenos Aires provinces. The production forecast for 1986/87 sunflowerseed has been lowered to between 2.2 and 2.4 mln tonnes, against 2.3 to 2.6 mln tonnes the previous week, making it 41.5 to 46.3 pct lower than the record 4.1 mln tonnes produced last season. The area sown was two to 2.2 mln hectares, down 29.9 to 36.3 pct on the record 3.14 mln hectares in 1985/86. The maize harvest advanced to within 26 to 28 pct of the area sown in Cordoba, Santa Fe and northern Buenos Aires. It will begin in La Pampa within about 10 days, weather permitting. Maize yield this season is now estimated at 9.6 to 9.9 mln tonnes, against last week's 9.9 to 10.1 mln tonnes, down 21.4 to 22.6 pct on the 12.4 to 12.6 mln tonnes at which private producers put 1985/86 production. The new forecast is 22.7 to 25 pct down on the official figure of 12.8 mln tonnes for last season's production. The grain sorghum harvest reached 17 to 19 pct of growers' targets, against 14 to 16 pct the previous week. The production forecast was reduced to between three and 3.3 mln tonnes, against 3.2 to 3.5 mln tonnes last week, 21.4 to 26.8 pct down on last season's 4.1 to 4.2 mln tonnes. The area sown with sorghum in 1986/87 was 1.23 to 1.30 mln hectares, down 10.3 to 15.2 pct on the 1.45 mln in 1985/86. The forecast for soybean yield this season was the least changed in relation to last week. It was put at a record 7.5 to 7.7 mln tonnes, against the previous 7.5 to 7.8 mln tonnes. These figures are 4.2 to 5.5 pct higher than last season's record of 7.2 to 7.3 mln tonnes, according to private sources, and 5.6 to 8.5 pct up on the official 7.1 mln tonnes. The adjustment to the production forecast is due to the rains and overcast conditions which have greatly reduced the sunlight needed for this crop, sources said. Producers fear estimates may yet have to be adjusted down further. The humidity could induce rotting and growers are still finding more empty pods due to excessively dry weather earlier in the season. Soybean harvesting is due to start in mid-April in southern Cordoba and Santa Fe and northern Buenos Aires. .I 389 .C ship 1; grain 1 .T LONDON GRAIN FREIGHT ENQUIRIES. .W LONDON, April 1 - Rio Grande/Azores and Leixoes 26,000 mt hss 14 dlrs basis one to two 4,000/1,500 Azores and 3,500 Leixoes 25/4-5/5. Paranagua/one-two ports Spanish Med 35,000 mt hss 11.50 dlrs basis one to one 10 days all purposes 20-30/4. USG/Taiwan 54,000 mt hss 10,000 shex/4,000 shex 20/4-5/5. USG/ARA-Ghent option Seaforth 40,000/45,000 long tons hss 10 days all purposes 9-15/4 try later. Dieppe/one-two ports Italian Adriatic 9,500/11,000 mt bulk wheat 3,000/2,000 6-12/4. St Lawrence/one-three ports Marseilles-Manfredonia range 20,000/35,000 mt bulk wheat 5,000/222,500 10-15/4. Chimbote/Kaohsiung 9,500 mt bulk/bagged fishmeal 250 ph/200 ph 20/4-5/5. Immingham or Foynes/Red Sea 25,000 mt bulk barley 4,000/3,000 10-15/4 alternatively try t/c. USG/Maracaibo 10,000 mt wheat (three grades) three days/1,000 1-15/4. .I 390 .C ship 1 .T LONDON METAL FREIGHTS. .W LONDON, April 1 - Enquiries - Rotterdam/Karachi 20,000/21,000 mt shredded scrap 7,000/1,100 15-30/4. Bin Qasim/Shanghai 25,000 mt pig iron 1,500 fhex/1,200 shex 1-10/4. Chungjin/Manila 4,200 mt steel coils 800/liner discharge 23-30/4. Bilbao/one port Vietnam 5,000 mt steels fio 1,000/500 end April Singapore/Mizushima 6,000/10,000 mt steel scrap fiot 1,200/3,00 2-12/4. .I 391 .C earn 1 .T CIRO INC YEAR. .W NEW YORK, April 1 - Shr loss three cts vs profit 16 cts Net loss 119,000 vs profit 637,000 Revs 17.5 mln vs 15.8 mln .I 392 .C ship 1 .T LONDON ORE ENQUIRIES/FIXTURES. .W LONDON, April 1 - Enquiries - South Africa/Salvador, Brazil 15,000 long tons manganese ore 2,500/1,500 end April. Callao/Crotone 5,000 mt minerals 4,000/2,000 spot. Geraldton/Tampico 13,500 mt bulk mineral sands fio 10,000/2,000 1-10/5. Itea/Dunkirk 20,000 mt bauxite seven days all purposes 10-13/4. Tampico/North Spain 15,000 mt ore two days shinc/3,000 shex 5-25/4. One port German North Sea/USG 10,500 mt bulk ore 2,500/4,000 7-13/4. .I 394 .C earn 1 .T HELM RESOURCES INC 4TH QTR LOSS. .W NEW YORK, April 1 - Oper shr loss two cts vs loss 13 cts Oper net loss 236,000 vs loss 1,131,000 Revs 26.6 mln vs 26.3 mln Year Oper shr profit two cts vs loss 15 cts Oper net profit 286,000 vs loss 1,292,000 Revs 105.3 mln vs 95.3 mln NOTE: Net excludes discontinued operations gain 20,000 dlrs vs loss 1,291,000 dlrs in quarter and gain 60,000 dlrs vs loss 1,590,000 dlrs in year. Net excludes extraordinary loss 38,000 dlrs vs gain 1,941,000 dlrs in quarter and gains 162,000 dlrs vs 1,941,000 dlrs in year. 1986 net both periods includes writedowns of 290,000 dlrs of oil-related seismic data. .I 397 .C earn 1 .T YEAR LOSS. .W DALLAS, April 1 - Shr loss eight cts vs profit four cts Net loss 365,430 vs profit 165,508 Revs 5,577,244 vs 4,643,803 NOTE: 1986 net includes nonrecurring expenses of 408,518 dlrs. .I 399 .C acq 1 .T AUSIMONT COMPO SELLS UNIT. .W WALTHAM, Mass., April 1 - Ausimont Compo NV said it has sold the assets of its Equipment and Machinery Division for about six mln dlrs to an investment group including the unit's management, resulting in a modest pretax gain that will be included in first quarter results. The unit had sales of five mln dlrs in 1986. .I 400 .C acq 1 .T ATLANTIC RESEARCH COMPLETES ACQUISITION. .W ALEXANDRIA, Va., April 1 - Atlantic Research corp said it has completed the acquisition of professional services firm ORI Group for 1,414,313 common shares on a pooling of interests basis. .I 401 .C acq 1 .T PEABODY HOLDING COMPLETES ACQUISITION. .W ST. LOUIS, April 1 - said it has completed its acquisition of substantially all Eastern Gas and Fuel Associate's coal properties for 15.01 pct of Peabody Holding's stock. Peabody said the purchase includes seven underground mines and seven coal preparation plants currently operated by Eastern, as well as coal properties being mined by several contractors in West Virginia. The acquisition also involves about 800 mln tons of coal reserves, mostly in West Va., and includes Eastern's coal reserves and inactive Powderhorn operations near Palisade, Colo, Peabody said. Peabody added that it expects to announce within the next week how it will staff and operate the properties and offices it has acquired from Eastern. .I 402 .C ship 1; sugar 1 .T LONDON SUGAR FREIGHTS. .W LONDON, April 1 - ENQUIRIES - Delfzyl/India 14,700 mt bagged sugar about 30 dlrs 750/1,000 ppt a/c Benham. Antwerp/Lagos 12,000 mt bagged sugar 750/750 try liner discharge 5-20/4 a/c E D and F Man. T/C single or tweendecker 16,000/19,000 tonnes dw del Queensland mid-April/early-May for trip with bulk sugar redel China duration about 30 to 40 days a/c Kawasaki. One port A-H range/Dubai 6,800 mt bagged sugar 750/750 10-15/4 a/c unnamed charterer. enquiries - Rouen-Hamburg/India 14,000 mt bagged sugar 750/1,000 15-25/4 a/c Woodhouse, Drake and Carey. Flushing/Hodeidah and Mokha 16,800 mt bagged sugar 750/750 9-15/4 Genoc. Santos/Hodeidah 10,000 mt bagged sugar about 30 dlrs 750/750 20-30/4 a/c Dutch charterer. Cargill is reported to have withdrawn its enquiries for cargoes from South Korea to India, from Constanza to India and from Buenaventura to the U.S. .I 404 .C earn 1 .T PENTA SYSTEMS INTERNATIONAL INC 4TH QTR. .W NEW YORK, April 1 - Shr loss six cts vs loss 76 cts Net loss 343,748 vs loss 4.0 mln Revs 5.1 mln vs 4.8 mln Year Shr profit 12 cts vs loss 1.45 dlr Net profit 611,784 vs loss 7.7 mln Revs 21.6 mln vs 19.7 mln .I 405 .C money-fx 1 .T ******FED SAYS IT BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER, MAY. .W THROUGH SEPT 24 MATURITY .I 406 .C acq 1 .T CHIRAC SEES QUICK DECISION ON CGCT. .W WASHINGTON, April 1 - French Prime Minister Jacques Chirac told U.S. congressmen France would announce a decision in two to three weeks on which group is to control its second largest communications firm, Compagnie Generale de Construction Telphoniques, French sources said. They said Chirac promised that France's decision would be based on financial, economic and technical criteria, and not on political grounds. U.S. and German companies are the leading contenders to take control of CGCT. The Reagan administration has warned France and Germany that it may retaliate if control of the company is awarded on political grounds. Jacques Delors, President of the European Community's Executive Commission, called last month for control to go to West Germany's Siemens AG in order to strengthen European industry. The other leading contender is a consortium of American Telephone and Telegraph Co with Philips NV of the Netherlands. Chirac said France would make public its reasons for awarding control, the sources said. He was asked about the company's fate on two occasions, in meetings with leaders of the Senate and House of Representatives. .I 407 .C ship 1 .T AGENCY REPORTS 41 SHIPS WAITING AT PANAMA CANAL. .W WASHINGTON, April 1 - The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 41 ships waiting to enter the canal early today. Over the next two days it expects -- 4/01 4/02 Due: 34 34 Scheduled to Transit: 41 39 End-Day Backlog: 34 29 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 25 hrs 11 hrs South End: 24 hrs 31 hrs .I 410 .C earn 1 .T CONTROL RESOURCE INDUSTRIES INC 4TH QTR. .W MICHIGAN CITY, Ind., April 1 - Shr loss five cts vs profit eight cts Net loss 152,000 vs profit 214,000 Revs 6.2 mln vs 2.4 mln Year Shr profit 22 cts vs profit 33 cts Net profit 809,000 vs 853,000 Revs 22.4 mln vs 7.9 mln .I 411 .C money-fx 1; interest 1 .T FED BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER. .W NEW YORK, April 1 - The Federal Reserve bought about 550 mln dlrs of U.S. Treasury bills for a customer, a spokeswoman said. She said the Fed bought bills maturing from May through September 24 for regular delivery tomorrow. Federal funds were trading at 6-3/16 pct when the Fed announced the operation. .I 412 .C earn 1 .T AMERICAN WATER WORKS CO INC SETS PAYOUT. .W WILMINGTON, Del., April 1 - Qtly div 32 cts vs 32 cts prior Pay May 15 Record May One .I 413 .C earn 1 .T HUNT MANUFACTURING CO SETS PAYOUT. .W PHILADELPHIA, April 1 - Qtrly div 11 cts vs 11 cts Pay April 21 Record April 10 .I 414 .C acq 1 .T ITEL BUYS CASTLE/COOKE UNIT ASSETS. .W CHICAGO, April 1 - Itel Corp said it has completed the previously-announced acquisition of the container fleet and related assets of Castle and Cooke Inc's Flexi-Van Leasing Inc subsidiary for about 130 mln dlrs in cash and marketable securities, 30 mln dlrs in notes, three mln common shares and the assumption of liabilities. The company said it has obtained 150 mln dlrs in financing from a bank group for the deal, and the common shares are subject to a 10-year restriction on their sale and voting. .I 415 .C earn 1 .T PITTSBURGH AND WEST VIRGINIA RAILROAD NET. .W PITTSBURGH, April 1 - 4th qtr Shr 14 cts vs 14 cts Net 210,000 vs 211,000 Revs 230,000 vs 229,000 Year Shr 56 cts vs 56 cts Net 838,000 vs 841,000 Revs 919,000 vs 919,000 .I 419 .C acq 1 .T DYNALECTRON BUYS AVIATION FACILITY. .W MCLEAN, Va, April 1 - Dynalectron Corp said it purchased certain assets of Standard Aero Inc including leasehold rights to its aircraft modification and maintenance facility in Phoenix, Ariz. Terms were not released. The facility consists of 285,000 square feet of hangar and shop space. Dynalectron will operate the plan as Dynair Tech Inc and is offering continued employment to about 460 former standard Aero employees. .I 420 .C oilseed 1; wheat 1; grain 1; soybean 1 .T U.S. FARM REORGANIZATIONS PROVING COSTLY - GAO. .W WASHINGTON, April 1 - U.S. farmers who reorganize their operations to circumvent a cap on federal payments could add 2.3 billion dlrs to the cost of the government's agricultural programs by 1989, the General Accounting Office, GAO, said. "We estimate that should the trend in farm reorganizations continue, reorganizations since 1984 could be adding almost 900 mln dlrs annually to program costs by 1989," GAO Senior Associate Director Brian Crowley said. "Cumulative costs for the six-year period, 1984 to 1989, could approach 2.3 billion dlrs," he said. Between 1984 and 1986, reorganizations added almost 9,000 new persons to U.S. Agriculture Department payment rolls, Crowley told the House Agriculture Subcommittee on Wheat, Soybeans and Feedgrains. .I 423 .C acq 1 .T TALKING POINT/PUROLATOR COURIER . .W By Patti Domm, Reuters New York, April 1 - Emery Air Freight Corp topped a leveraged buyout offer for Purolator Courier Corp by about 40 mln dlrs, but Wall Street is reacting as though another offer may surface. Purolator's stock climbed 5-3/8 today, to 40-1/8, 1/4 over Emery's 40 dlr per share offer. Emery topped a 35 dlr per share or 268 mln dlr offer from E.F. Hutton LBO Inc. Some analysts said the latest, 306 mln dlr offer for Purolator exceeded their expectations. Several analysts previously had said they saw takeover values for the package delivery company in the 35 dlr per share range. At least one, however, estimated the company could be taken over in a range of 38 to 42 dlrs per share. Analysts today would not venture to say whether another offer could be made, but some arbitragers still held to the belief that the bidding could go higher. "They have no choice to seek out the best possible offer. Emery has shown the courage to go forth," said one arbitrager, who speculated other courier companies may also emerge as bidders. "It makes sense," said James Parker of Robinson Humphrey. But "It won't make out as well as they think. They won't get a 100 pct of the synergies." Analysts said the acquisition could cost Emery earnings in the short term, but long term, after eliminating redundancies and selling other Purolator assets, it should boost Emery's profitability. Parker said a combined Purolator and Emery would rival United Parcel Service as the second largest U.S. package delivery company after Federal Express Corp , which has 47 pct of the market. Parker speculated that the combined Emery-Purolator would have about 24 pct of the six to seven billion dlr delivery business. "This will make Emery a bigger factor in the light weight (delivery) business, but it will not make them a power house," said Douglas Arthur of Kidder, Peabody and Co. Purolator today declined comment on the Emery offer, and its chairman Nicholas Brady did not return a phone call. E.F.Hutton LBO also declined comment on the Emery offer, but said it extended the expiration and withdrawal period on its offer to April six at midnight from today at midnight EST. One analyst speculated the extension makes it more likely Hutton will attempt another offer. However, he was skeptical a company outside the package delivery industry would want to outbid 40 dlrs per share because it would not have the same synergies as a courier company. Since Purolator agreed in late February to a buyout by some of its management and the E.F. Hutton Group subsidiary, speculation has arisen that more bidding was to come. The buyout was surrounded by controversy since a Purolator board member, Doresy Gardner resigned in March. Gardner said he believed a better offer could be made by another entity. A spokesman for Gardner today said the former director had no contact with Emery, nor did he have any other buyers lined up for Purolator. Purolator's deal with Hutton was also called into question by a shareholder suit filed earlier this week, which attempted to stop the tender offer to allow another bidder to come forth. Hearings in a New York state court were delayed until Monday. Arbitragers had said they believed the Hutton offer could be bettered because the Wall Street firm was not planning to keep its cash tied up in Purolator. Hutton is providing a 279 mln dlr "bridge" loan that would later be replaced with other debt. Hutton would maintain a majority interest in Purolator. Hutton sources have said the firm was in fact facing risk n its investment since it did not know when it could reclaim its 279 mln dlr loan. Emery last year lost 5.4 mln dlrs on revenues of 887.5 mln dlrs. Purolator lost 57.6 mln dlrs on 841.4 mln dlrs in revenues. .I 425 .C interest 1 .T CANADIAN IMPERIAL BANK LOWERING VISA RATES. .W TORONTO, April 1 - said it was lowering the interest rate on its Visa credit card to 15.9 pct from 18.6 pct, effective with the May billing statement. The bank said it was also halving its yearly Visa card user fee to six dlrs, but would retain its 15 ct fee for each transaction. A bank spokesman said the previously reported call by the Canadian Parliament's finance committee on March 20 for a substantial cut in credit card rates "was a factor" in the move, but he would not elaborate. Canada's minister of state for finance Thomas Hockin had threatened legislation to reduce the rates, which apply to unpaid balances, if the financial institutions did not voluntarily act. The Canadian Imperial Bank spokesman said "the bank card market is a very competitive one and we have to move to stay competitive." Canadian Imperial's new rates match those of , which lowered its rates before the finance committee report. Canadian Imperial Bank added that cardholders will be allowed to choose between the 15 ct transaction fee or the six dlr yearly card fee. It will also eliminate the 50 ct minimum monthly transaction fee, it said. Minister of State for Finance, Tom Hockin, said in the House of Commons today he was "delighted" with the bank's cut in its credit card rate. "I would hope retail stores and other financial institutions will look to their rates as well," Hockin said during the daily question period. .I 429 .C earn 1 .T NISSAN MOTOR SEES SECOND HALF PROFIT. .W NEW YORK, April 1 - Nissan Motor Co Ltd of Japan said it expects that it was profitable in the second half ended yesterday after a first half operating loss of 17 billion yen. Nissan chief financial officer Atsushi Muramatsu, in a speech before an automotive seminar, said he attributed the improvement to cost reductions and rationalizations of operations. He said if exchange rates stabilize, Nissan will have a strong profit recovery in fiscal 1988 and profits for fiscal 1989 better than those before the yen started advancing. Muramatsu said Nissan is studying the possibility of setting up its own finance company to improve access to U.S. and European capital markets. .I 430 .C earn 1 .T GEOFFRION LECLERC FORECASTS RESULTS. .W MONTREAL, April 1 - (Geoffrion Leclerc Inc), in reporting sharply higher earnings for the six months ended February 28, said it expects third quarter results to continue at a strong pace and approximate the preceding quarters. The brokerage firm earlier reported six month profit rose to 3.5 mln dlrs from 1.9 mln dlrs last year. It did not detail second quarter profit. .I 431 .C acq 1 .T WALL STREET STOCKS/POLAROID . .W NEW YORK, April 1 - Rumors that New York investor Asher Edelman has acquired a stake in Polaroid Corp and optimism about tomorrow's status hearing on the patent infringement suit pending with Eastman Kodak Co sent Polaroid's stock higher, traders said. Polaroid rose 1-1/8 to 74-1/2. "Speculation that Edelman was going to take a stake in Polaroid was kicking around a few months ago, and resurfaced today," one trader said. Edelman had no comment on the rumors. A spokesman for Polaroid said the company had not been contacted by Edelman and no filing had been made with the Securities and Exchange Commission about a stake in the company. "There is some hope among investors that there will some progress in the status hearing tomorrow on the patent infringement suit with Kodak," analyst Michael Ellmann of Wertheim and Co said. Traders said it is conceivable that a trial date could be set or some progress made on an out-of-court settlement. The suit, filed by Polaroid in April 1976, charges that Kodak infringed upon Polaroid's instant camera patent. In October 1985, the court barred Kodak from selling cameras or film that infringe upon the patent, the Polaroid spokesman said. Ellmann said he feels it is highly unlikely that any progress will be made in tomorrow's hearing. Ellmann said the stock may have also gotten a boost today from some optimism concerning new products the company is currently working on. "Polaroid's announcement that a particularly senior company executive had been chosen to work on a major unidentified new product spurred some speculation about their products," he said. "I am speculating that the new product could be an electronic still camera," referring to a camera that records its images on magnetic disks as opposed to conventional film. Ellmann said the stock may have also gotten a boost today from some optimism concerning new products the company is currently working on. "Polaroid's announcement that a particularly senior company executive had been chosen to work on a major unidentified new product spurred some speculation about their products," he said. "I am speculating that the new product could be an electronic still camera," referring to a camera that records its images on magnetic disks as opposed to conventional film. .I 432 .C earn 1 .T KAUFMAN AND BROAD INC 1ST QTR FEB 28 NET. .W LOS ANGELES, April 1 - Shr 41 cts vs 17 cts Net 8,824,000 vs 4,555,000 Revs 301.9 mln vs 196.4 mln Avg shrs 17,644,000 vs 16,085,000 .I 433 .C acq 1 .T ITEL COMPLETES FLEXI-VAN ACQUISITION. .W CHICAGO, April 1 - Itel Corp said it completed the previously announced purchase of the container fleet and certain related assets of Flexi-Van Leasing Inc for about 130 mln dlrs cash and marketable securities, 30 mln dlrs in notes, three mln shares of newly issued Itel common and assumption of certain liabilities. The company said it obtained financing from a syndicate of major banks for 150 mln dlrs. .I 435 .C earn 1 .T KAUFMAN AND BROAD INC 1ST QTR FEB 28 NET. .W LOS ANGELES, April 1 - Shr 41 cts vs 17 cts Net 8,824,000 vs 4,555,000 Revs 301.9 mln vs 196.4 mln NOTE: Housing backlog 135 mln dlrs, up over 33 pct from a year earlier. .I 436 .C coffee 1 .T NY ANALYSTS SEE COFFEE FUTURES FALLING FURTHER. .W New York, April 1 - New York coffee futures prices will probably fall to about 85 cents a lb in the next month before a consolidation trend sets in, according to market analysts. Yesterday, prices for the spot May contract fell below 1.00 dlr a lb for the first time since August 1981 after the International Coffee Organization did not place new export quota discussions on its current agenda. Talks aimed at renegotiating ICO export quotas, after five years of price-supporting agreements, broke down in February. "Short-term, it looks like a definite test of 90 cents, perhaps 85 cents," said William O'Neill, coffee analyst with Elders Futures. "But the additional downside may not be all that great from current levels." "At this price level the market is very vulnerable to bullish developments," O'Neill added. "Rather than us having a market that will plummet we'll kind of see prices erode -- probably to around 85 cents." "I definitely see 90 cents and would not rule out a brief drop to 85 cents," said Debra Tropp, a coffee analyst with Prudential Bache. But she said by June worries about a freeze in Brazil growing areas will become more of a market factor, with prices likely to consolidate ahead of that time. A trader at a major international trade house, who asked not to be named, said he expects a 10 cent drop near term but believes if Brazil opens May registrations at a relatively high export price and requires a high contribution quota from exporters the market could steady at the lower levels. Longer term, he added, producer pressure will mount on Brazil to agree to consumers' export quota terms, and a new international agreement could come into force next fall. Since the February talks broke down, the market has fallen from about 130.00 cents a lb to a low of 98.10 cents a lb today, as buyers and sellers sought to reassess supply and demand. Generally, analysts say, producers have a large buildup of stocks, but U.S. roasters have drawn down supplies and will need to do some buying soon. "Most producing nations have just completed or are about to complete their annual harvests and exportable supplies are at their seasonal peak. Exports remain behind year ago and warehouses in producer nations are becoming increasingly overburdened," said Sandra Kaul, coffee analyst for Shearson Lehman, in that firm's forthcoming quarterly coffee report. Kaul said producers' need to procure hard currency to service foreign debt will put further pressure on them to sell, and "this should keep substantial pressure on exporters to undertake sales despite the drop in prices to six year lows." Kaul believes the market will drop to 80 cents a lb before Brazil's frost season begins in June. Accurate assessments of roaster demand are hard to come by, though analysts note the peak winter consumption period is passed and demand usually slows this time of year. Shearson's Kaul estimated U.S. roaster ending stocks as of January 31, including soluble and roasted, at 6.3 mln bags compared with 6.9 mln at end-September 1986, a small drawdown for the usually busy winter roasting season. But Elders O'Neill said, "The roasters are not overstocked by any means." Analysts said picking a bottom to the market is difficult, given the fact prices have fallen into uncharted territory below the long-term support at 1.00 dlr per lb, and several traders said the sidelines might be preferable for the short term. .I 437 .C gas 1 .T ENERGY/U.S. REFINING. .W By BERNICE NAPACH, Reuters NEW YORK, April 1 - U.S. refiners said they are worried that growing supplies of imports, proposed federal environmental regulations, and the marketing of a third grade of unleaded gasoline would cost them dearly and at a time when the industry is recovering from a recent slump. "We have to look at national security and cut the amount of products and crude coming into the country if it hurts the industry," said Archie Dunham, vice president of petroleum products at Conoco, subsidiary of DuPont Corp (DD). U.S. oil imports account for about 38 pct of U.S. consumption but are expected to rise to 50 pct by the mid 1990s, according to the Department of Energy. "Can we afford to import 60 or 70 pct of our oil requirements 15 or so years from now?" asked John Swearingen, chairman of the board of Continental Illinois Corp and former chief executive of Amoco Corp . "If your answer to that question raises doubt, then it behooves us to do all that we can now to cope with this situation and improve our position." But Swearingen said he opposed the idea of an import fee, a view echoed by others attending this week's National Petroleum Refiners Association meeting in San Antonio, Texas. "Talk of an import surcharge or controls is not encouraging because those things won't solve our problems and could well compound them," said Swearingen. "Once the government affects values, once an import quota or license has value, it's going to be subverted by government," he added. William Martin, deputy Energy Secretary, said the costs of an import fee outweigh its benefits and suggested, as Energy Secretary John Herrington has, depletion tax credits to encourage domestic production and limit oil imports. He also said altnerative energy sources should be encouraged. Restoration of the depletion allowance for a 27 pct deduction from the taxable income of oil companies is controversal but might work, said Dunham. Dunham and other officials opposed the idea of a fee on oil imports but said if one is enacted it must tax crude and product imports. "Why would companies import crude when they could import products for a smaller cost if there were only a fee on crude?" asked Henry Rosenberg, chairman of Crown Central Petroleum . An import fee would raise the costs of U.S. petrochemical products and make them noncompetive on the world market, Dunham said. "The energy security issue should be considered when environmental issues are considered," Martin said. "The level of investment for the proposed lowering of sulfur level of diesel to 0.05 pct by weight, for example, is unacceptable," Dunham said. "Most companies cannot afford it." George Unzelman, president of HyOx, Inc., said these proposals "will place pressure on small refining operations and promote further industry consolidation." An NPRA survey of of 139 refineries, which was released at the conference, said reducing sulphur content to 0.05 pct weight and aromatics to 20 volume pct aromatics in highway diesel fuel would cost refiners 6.65 billion dlrs. The national average diesel fuel sulfur content in 1986 for the survey respondents was 0.27 weight pct while the average aromatics content was 32 pct. Another possible cost to refiners is the upgrading of facilities to produce a third grade of unleaded gasoline which is beginning to be marketed by some companies. "What will be the standard octane level in various grades of unleaded gasoline?" asked Dunham. "A midlevel grade of unleaded gasoline with an octane level of 89 means an investment has to be made," Dunham said. This grade is not warranted, said Crown's Rosenberg. Despite these concerns, refiners are expecting margins to move higher in the next few months. "We are beginning to see a return in wholesale margins," said Roger Hemminghaus, chairman of the refining and marketing company that is to spin off from Diamond Shamrock Corp . Margins are higher because the OPEC pact is holding, U.S. stocks of gasoline and heating oil are declining, and gasoline demand is rising as the driving season approaches, he said. "This summer could be a good season for selling gasoline," Hemminghaus said, adding that the new company will be primarily a gasoline producer. .I 439 .C earn 1 .T CSX CORP 1ST QTR NET. .W RICHMOND, Va, April 1 - Shr 47 cts vs 56 cts Net 73.0 mln vs 85.0 mln Revs 1.89 billion vs 1.69 billion NOTE: figures reflect the merger of Sea-Land Corp completed Feb 11, 1987. .I 441 .C acq 1 .T WALL STREET STOCKS/LORAL CORP . .W NEW YORK, April 1 - Loral Corp climbed 3-3/4 to 48-3/4 amid rumors the company might be a takeover target of General Electric Co . However, analysts said they were skeptical. "Jack Welch doesn't want any more exposure to defense markets," said one analyst who heard the rumors but doubted their accuracy. The reference was to GE's chairman. The analyst, who requested anonymity, said, "I wouldn't believe this one unless there's a deal on the table." Loral Corp officials were not immediately available for comment. .I 443 .C copper 1 .T MAGMA LOWERS COPPER PRICE 0.25 CT TO 65.50 CTS. .W NEW YORK, April 1 - Magma Copper Co, a subsidiary of Newmont Mining Corp, said it is lowering its copper cathode price by 0.25 cent to 65.50 cents a lb, effective immediately. .I 444 .C earn 1 .T SNET SEES GOOD 1987 EARNINGS. .W NEW YORK, April 1 - Southern New England Telecommunications Corp, SNET, said it expects to have good earnings in 1987 against 4.46 dlrs per share or 139.2 mln dlrs in 1986. The company also said it expects capital spending to rise to about 355 mln dlrs in 1987, up from 289 mln dlrs a year ago. However, senior vice president of finance Daniel Miglio told a meeting of analysts that there was some uncertainty in its earnings outlook because SNET is currently involved in negotiations with state regulators on its rate of return on equity which currently stands at 16.2 pct. The company also said it expects its SNET Systems business, which is composed of some of its non-regulated businesses, to be profitable by the end of the year. .I 447 .C acq 1 .T STRYKER ACQUIRES HEXCEL UNIT. .W KALAMAZOO, Mich., April 1 - Stryker Corp said it acquired Hexcel Medical Corp, a wholly owned subsidiary of Hexcel Corp. The terms of the transaction were not disclosed. The sale completes Hexcel's plan to sell all its medical products businesses, Hexcel said. .I 449 .C acq 1 .T OLD STONE COMPLETES ACQUISITION. .W PROVIDENCE, R.I., April 1 - Old Stone Corp said it completed the previously announced acquisition of First Federal Savings Bank of North Carolina, a Shelby, N.C., savings bank, for common stock. The final purchase price, expected to be between seven mln and 7.5 mln dlrs, will be based on an exchange of common stock valued at 1.5 times the book value of First Federal as of the March 31 closing date, the company said. At February 28, First Federal had 129 mln dlrs in assets and 120 mln dlrs in deposits. Old Stone is a Rhode Island-based financial services company with assets of 3.9 billion dlrs. .I 450 .C acq 1 .T MOORE MEDICAL CORP TO MAKE ACQUISITION. .W NEW BRITAIN, Conn., April 1 - Moore Medical Corp said it plans to acquire privately-held Penta Products, a wholesale distributor of generic durgs, for undisclosed terms. .I 451 .C copper 1 .T INSPIRATION LOWERS COPPER PRICE TO 66.50 CTS/LB. .W NEW YORK, April 1 - Inspiration Consolidated Copper Co, a subsidiary of Inspiration Resources Corp, said it is lowering its base price for full-plate copper cathodes one-half cent to 66.50 cents a lb, effective immediately. .I 452 .C veg-oil 1 .T ARGENTINE VEGETABLE OIL SHIPMENTS IN 1986. .W BUENOS AIRES, Apr 1 - Argentine vegetable oils shipments during January/December 1986 totalled 1,796,121 tonnes, against 1,577,722 tonnes in the same period of 1985, the Argentine Grain Board said. Breakdown was as follows: cotton 9,000 (27,900), sunflower 954,303 (840,440), linseed 119,954 (138,944), groundnutseed 26,248 (26,246), soybean 669,094 (524,715), tung 9,047 (11,363), olive 2,417 (4,125), maize 6,058 (3,989), rape nil (nil) , grape nil (nil), the board added. Shipments during December 1986 amounted to 102,870 tonnes, against 108,514 tonnes in the same month of 1985. The breakdown, was as follows, in tonnes: Cotton 5,000 (nil), sunflower 25,156 (23,713), linseed 6,127 (5,990), groundnutseed nil (738), soybean 65,759 (76,371), tung 645 (730), olive 183 (660), maize nil (312), rape nil (nil), grape nil (nil), the board said. The ten principal destinations during January/December 1986, with comparative figures for the same period of 1985 in brackets, were as follows, in tonnes: Iran 212,043 (209,177), Holland 204,558 (215,784), Soviet Union 173,060 (266,389), Egypt 163,119 (164,252), Algeria 116,330 (11,492), South Africa 105,230 (110,064), Brazil 101,599 (103,142), Cuba 89,957 (98,740), United States 80,109 (44,826), India 67,182 (17,403), the board said. .I 453 .C acq 1 .T UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM. .W NEW YORK, April 1 - Upland Minerals and Chemicals Corp said it agreed to acquire Consolidated Brazilian Mines International Inc, a public company with one mln acres of diamond and gold properties in Brazil. Terms were not disclosed. Consolidated owns 42 mining concessions in three regions of eastern and northern Brazil -- Gammara, Santo Antonio and Diamazon, the company said. Upland also said the previously announced acquisition of Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining concern, will produce revenues of 9.6 mln dlrs a year for the next 25 years. New York-based Upland is traded over-the-counter. .I 454 .C acq 1 .T INSPEECH BUYS NORMA BORK, BORK MEDICAL. .W VALLEY FORGE, Pa., April 1 - Inspeech Inc said it acquired Norma Bork Associates Inc and Bork Medical Services Inc for undisclosed terms. These firms, with combined revenues of about one mln dlrs, are providers of speech pathology, physical therapy and occupational therapy services. .I 455 .C earn 1 .T NOLAND CO SETS QUARTERLY. .W NEWPORT NEWS, Va., April 1 - Qtly div 10 cts vs 10 cts prior Pay April 24 Record April 14 .I 457 .C interest 1 .T BANK OF NEW YORK RAISES PRIME TO 7-3/4 PCT. .W NEW YORK, April 1 - Bank of New York said it raised its prime lending rate a quarter point to 7-3/4 pct. It said the move is effective immediately. .I 459 .C earn 1 .T HARTMARX CORP 1ST QTR FEB 28 NET. .W CHICAGO, April 1 - Shr 54 cts vs 40 cts Net 11,105,000 vs 8,310,000 Sales 282.7 mln vs 290.3 mln Avg shrs 20,599,000 vs 20,760,000 NOTE: Per-share results restated for May 1986 three-for-two stock split .I 463 .C interest 1 .T MANUFACTURERS NATIONAL RAISES PRIME. .W DETROIT, April 1 - Manufacturers National Bank of Detroit said it increased its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 464 .C acq 1 .T UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM. .W NEW YORK, April 1 - Upland Minerals and Chemicals Corp said it agreed to acquire Consolidated Brazilian Mines International Inc, a public company with one mln acres of diamond and gold properties in Brazil. Terms were not disclosed. Consolidated owns 42 mining concessions in three regions of eastern and northern Brazil -- Gammara, Santo Antonio and Diamazon, the company said. Upland also said the previously announced acquisition of Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining concern, will produce revenues of 9.6 mln dlrs a year for the next 25 years. .I 465 .C earn 1 .T TOLL IN STOCK SPLIT, PUBLIC OFFERING. .W HORSHAM, Penn., April 1 - Toll Brothers Inc said it declared a two-for-one split of its common stock and said it filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 5,700,000 shares of common as adjusted for the split. The record date for the split is April 10, and certificates representing the additional shares will be mailed April 20. The company said its stock price will be adjusted to reflect the split on April 21. .I 467 .C earn 1 .T NATIONAL ROYALTY CORP 4TH QTR LOSS. .W TULSA, Oklahoma, April 1 - Shr loss 22 cts vs loss 20 cts Net loss 2,127,334 vs loss 1,629,432 Revs 1,306,658 vs 1,091,023 Avg shrs 9.7 mln vs 8 mln Year Shr loss 36 cts vs loss 35 cts Net loss 3,519,251 vs loss 2,805,569 Revs 5,081,953 vs 4,410,954 Avg shrs 9.8 mln vs 8.1 mln .I 468 .C earn 1 .T HI-PORT INDUSTRIES INC 4TH QTR NET. .W HOUSTON, April 1 - Oper shr 29 cts vs eight cts Oper net 222,143 vs 76,605 Revs 4,872,279 vs 3,276,404 12 mths Oper shr 17 cts vs 28 cts Oper net 111,280 vs 301,623 Revs 13.9 mln vs 11.1 mln NOTE: 1986 yr figures excludes extraordinary item of 574,363 dlrs, or 60 cts per share, for termination of its non contributory pension plan. 1985 yr figures excludes 537,950 dlrs, or 42 cts per share, representing insurance proceeds from a fire that occurrred in 1983. .I 471 .C silver 1 .T COMEX RAISES MARGINS FOR SILVER FUTURES. .W NEW YORK, April 1 - The Commodity Exchange Inc said it is increasing the minimum margins for silver futures contracts, effective at the opening of business Thursday, April 2. The margins for speculative trading will be increased to 2,000 dlrs per contract from 1,300 dlrs and trade hedge margins will rise to 1,400 dlrs from 900 dlrs, the Comex said. Margins are unchanged for gold, copper, and aluminum contracts, it said. .I 472 .C earn 1 .T YEAR LOSS. .W CHICAGO, April 1 - Shr loss 33 cts vs nil Net loss 603,430 vs profit 4,295 Revs 748,628 vs 5,730 NOTE: Per-share results give retroactive effect to one-for-50 reverse stock split in March 1987 1986 loss includes recurring expenses of 317,062 dlrs related to acquisitions and initial advertising campaigns .I 474 .C interest 1 .T MELLON , REPUBLIC LIFT PRIME RATES. .W NEW YORK, April 1 - Mellon Bank NA of Pittsburgh and Republic Bank of Dallas have both raised their prime lending rates to 7-3/4 pct from 7-1/2, effective immediately. .I 477 .C ship 1 .T GULF BARGE FREIGHT HIGHER IN NEARBYS ON CALL. .W ST LOUIS, April 1 - Gulf barge freight rates continued to show a firmer tone in the nearbys on the assumption that changes in the Gulf posted prices will encourage increases in both PIK-and-roll activity and barges shipments, with a total of 21 barges traded this morning on the ST Louis Merchants' Exchange call session, versus nine yesterday, dealers said. Quotes included - - This week Mississippi River (Granite City, MLA if P/O) traded at 175 pct of tariff, five percentage points above yesterday's bid. - Next week Mississippi (Alton/Granite City, MLA if P/O) bid five points higher at 175 pct, offered at 190. - Five barges each week April MidMississippi River (Dubuque/south) traded at yesterday's bid of 170 pct. - April Illinois River (ex Chicago) 160 pct bid, offered 10 points higher at 170. - May same section 140 pct bid, offered five lower at 145. - May MidMississippi River (Dubuque/south) bid 2-1/2 points higher at 142-1/2 pct, offered at 145. - June/July lower Mississippi River (Memphis/Cairo) offered at 120 pct, no bids. - June/Aug upper Mississippi River (Lacrosse/Savage) offered at 150 pct, no bids. - Oct/Nov MidMississippi (Dubuque/south, L/H Nov Clinton/south) 170 pct bid/177-1/2 offered - no comparison. - December Illinois River (ex Chicago) 122-1/2 pct bid/127-1/2 offered - down 2-1/2 points on offer. .I 478 .C acq 1 .T ASSETS TO BE SOLD TO HAWLEY. .W INDIANAPOLIS, April 1 - Crime Control Inc said it reached a definitive agreement under which a subsidiary of Hawley Group Ltd will buy assets and assume certain liabilities of Crime Control for 51.3 mln dlrs. Of this amount, it said about 47 mln dlrs would be available for distribution to the company's banks, debenture holders and shareholders. The balance would be used to pay various state taxes and other expenses relating to the transaction, and to establish reserves to provide for certain unassumed obligations of the company. Crime Control said it would use proceeds to pay its bank lenders approximately 28.6 mln dlrs, representing about 87 pct of the principal amount of all its indebtedness to bank lenders. It also said it would propose to acquire all of its 20 mln dlrs worth of outstanding 10 pct convertible subordinated debentures for an aggregate of approximately 15.4 mln dlrs and propose liquidation of the company with shareholders receiving an estimated 54 cts a share. As reported earlier, Crime Control is in default on approximately 33 mln dlrs of bank debt and in default under the indenture governing its convertible subordinated debentures. On January 19, 1987, Crime Control, which installs, services and monitors electronic surveillance systems, said it retained Rothschild Inc to arrange for the sale of the company. .I 479 .C interest 1 .T ******ROYAL/BANK CANADA UPS U.S. BASE RATE 1/4 PCT TO 8-1/4 PCT. .W .I 482 .C oilseed 1; wheat 1; grain 1; rapeseed 1; soybean 1; sunseed 1; cotton 1; linseed 1; groundnut 1 .T ARGENTINE SUBPRODUCTS SHIPMENTS IN 1986. .W BUENOS AIRES, Apr 1 - Argentine subproducts shipments during January/December 1986 totalled 5,618,315 tonnes, against 4,815,188 tonnes in the same period of 1985, the Argentine Grain Board said. Breakdown was as follows: cotton 26,992 (41,933), sunflower 1,403,230 (1,190,862), linseed 261,600 (309,191), groundnutseed 23,595 (22,809), soybean 3,275,225 (2,415,492), bran/pollards wheat 606,352 (659,271), fiber cotton 3,256 (107,752), wheat flour 18,065 (67,878), rape nil (nil), the board added. Shipments during December 1986 amounted to 418,755 tonnes, against 257,844 tonnes in the same month of 1985. The breakdown, was as follows, in tonnes: Cotton 3,002 (6,234), sunflower 86,612 (38,347), linseed 23,954 (38,290), groundnutseed nil (nil), soybean 264,650 (104,571), bran/polards wheat 37,724 (49,946), fiber cotton 987 (2,121), wheat flour 1,826 (18,335), rapeseed nil (nil), the board said. The ten principal destinations during January/December 1986, with comparative figures for the same period of 1985 in brackets, were as follows, in tonnes: Holland 2,444,260 (2,234,049), Belgium 546,423 (595,635), Italy 430,029 (338,766), Czechoslovakia 365,897 (236,836), Cuba 253,067 (222,842), Iran 250,646 (192,430), West Germany 232,049) (158,491), Bulgaria 207,030 (300,488), Spain and Canary Islands 176,287 (113,751), Corea 163,304 (37,416), the board added. .I 483 .C earn 1 .T LE PEEP RESTAURANTS INC 4TH QTR LOSS. .W DENVER, April 1 - Shr loss 27 cts vs loss 81 cts Net loss 998,764 vs loss 1,491,590 Revs 2,712,614 vs 1,237,850 Avg shrs 3,727,063 vs 1,838,294 Year Shr loss 1.79 dlr vs loss 2.11 dlrs Net loss 4,559,004 vs loss 3,882,235 Revs 8,510,004 vs 3,720,640 Avg shrs 2,544,271 vs 1,838,294 .I 485 .C livestock 1; carcass 1 .T ESTIMATED U.S. POULTRY SLAUGHTER. .W KANSAS CITY, April 1 - The United States department of agriculture estimated live poultry slaughter for the week ending April 1 as follows, in thousands - Current Previous Class week week Bro/Fry 92,552 95,563 Lt Fowl 2,840 3,354 Hvy Fowl 651 789 Check Total 96,043 99,706 .I 486 .C earn 1 .T TOWLE MANUFACTURING CO 4TH QTR OPER LOSS. .W BOSTON, April 1 - Oper shr loss 1.10 dlrs vs loss 8.63 dlrs Oper net loss 5.1 mln vs loss 42.1 mln Revs 23.1 mln vs 63.3 mln Year Oper shr loss 4.71 dlrs vs loss 14.09 dlrs Oper net loss 22.0 mln vs loss 67.2 mln Revs 114.6 mln vs 221.8 mln Avg shrs 4,910,330 vs 4,851,650 NOTE: Current year excludes gain of 12.1 mln dlrs from disposal of discontinued operations. Shr figures after preferred dividend requirements. .I 487 .C interest 1 .T ROYAL BANK/CANADA UPS U.S. BASE RATE. .W MONTREAL, April 1 - said it is raising its U.S. base lending rate by 1/4 pct to 8-1/4 pct, effective tomorrow. The move is the first change in the bank's U.S. dollar base lending rate since last August, when it lowered the rate 1/2 point. It follows the announcement yesterday of a 1/4 point rise to 7-3/4 pct of two of the largest U.S. banks' prime rates. .I 488 .C interest 1 .T HARRIS BANK INCREASES ITS PRIME RATE. .W CHICAGO, April 1 - said it has increased its prime rate to 7-3/4 from 7-1/2 effective immediately. .I 489 .C wheat 1; grain 1 .T ANALYSTS SAY USSR MAY PREFER NEW CROP U.S. WHEAT. .W WASHINGTON, April 1 - The Soviet Union would likely be more interested in purchasing new crop wheat than in booking any grain for immediate shipment if offered a subsidy on U.S. wheat, an executive with a major grain export company said. Lower prices and the desire to delay any big purchases until the condition of winter and spring crops is better known make new crop wheat more attractive, said George Hoffman, director of commodity analysis for The Pillsbury Company. "Pillsbury is assuming that they (Soviets) will be offered a subsidy and that it will be a subsidy that they can respond to," Hoffman told Reuters in an interview at an agribusiness education conference here. But if there are too many constraints placed on a subsidy offer, the USSR will take less than an anticipated four mln tonnes, he said. Hoffman said Pillsbury's internal statistics put Soviet Union wheat purchases at only two mln tonnes under a subsidy offer. However, if a subsidy is offered at competitive levels, Moscow would likely buy more, he said. "If we give the Soviets the same deal as the Chinese, I expect they'll take it," said Vernon McMinimy, director of commodity research for A.E. Staley Manufacturing Co. McMinimy told Reuters spring weather and its impact on crops will determine how much wheat Moscow would buy under a subsidy offer. Soviet winter crops did not get off to a good start because of a dry autumn last year, and because of the severe winter "they probably have had more damage due to winter weather than normal," McMinimy said. .I 494 .C earn 1 .T STRAWBRIDGE AND CLOTHIER 4TH QTR NET. .W PHILADELPHIA, April 1 - Shr 2.02 dlrs vs 1.94 dlrs Net 14.7 mln vs 13.9 mln Revs 265.6 mln vs 235.1 mln Year Shr 2.83 dlrs vs 3.36 dlrs Net 20.7 mln vs 24.1 mln Revs 739.1 mln vs 686.9 mln NOTE: Current year includes loss equal to 12 cts/shr from takeover defense and loss of 13 cts from loss of investment tax credits. .I 495 .C crude 1 .T ******MOBIL RAISES WEST COAST CRUDE PRICES BETWEEN ONE DLR AND. .W 1.75 DLRS/BBL TODAY .I 497 .C wheat 1; grain 1 .T EGYPT AUTHORIZED TO BUY PL 480 WHEAT FLOUR-USDA. .W WASHINGON, April 1 - Egypt has been authorized to purchase about 125,000 tonnes of U.S. wheat flour under an existing PL 480 agreement, the U.S. Agriculture Department said. It may buy the wheat flour, valued at 23.0 mln dlrs between April 8 and August 31, 1987 and ship it by September 30, the department said. .I 498 .C ship 1 .T TUGS TO ATTEMPT REFLOATING KOREAN BULK CARRIER. .W LONDON, April 1 - Seven tugs will attempt to refloat the South Korean motor bulk carrier Hyundai New World tonight, Lloyds shipping intelligence service said in its latest update. The vessel grounded close to Itaqui port in Brazil last night after undocking from Ponta da Madeira terminal. Lloyds said the 200,000 dwt vessel is carrying about 180,000 tons of ore. Five holds are partially flooded and there is some leakage of bunkers from double bottom tanks. At low water tide the vessel has a list of five degrees to port and the list increases as the tide rises. .I 499 .C earn 1 .T ROBERT BRUCE INDUSTRIES INC YEAR LOSS. .W NEW YORK, April 1 - Shr loss 3.31 dlrs vs profit 94 cts Net loss 6,073,000 vs profit 1,823,000 Revs 58.9 mln vs 69.2 mln .I 502 .C interest 1 .T TCF BANKING AND SAVINGS HIKES PRIME RATE. .W MINNEAPOLIS, April 1 - TCF Banking and Savings FA said it is raising its prime rate to 7-3/4 pct from 7-1/2 pct effective today. .I 503 .C oilseed 1; groundnut 1 .T CCC SELLS FARMERS STOCK PEANUTS, OFFERS MORE. .W WASHINGTON, April 1 - The U.S. Commodity Credit Corporation (CCC) sold 6,034 short tons of 1986-crop farmers stock peanuts for domestic crushing, the U.S. Agriculture Department said. The peanuts were from the Southwest area and were sold at between 8.05 cts per lb (total kernel content), and 11.7225 cts per lb, the department said. The CCC will offering additional 1986-peanuts for sale at a later date, the department said. .I 504 .C acq 1 .T CAMPEAU AND EDWARD DEBARTOLO COMPLETE PURCHASE. .W NEW YORK, April 1 - and the have closed on their previously-announced purchase of five of the regional shopping centers of Allied Stores Corp. Campeau said it and the DeBartolo Association will each hold a 50 pct ownership interest in the shopping centers. Campeau separately announced that, as required by a bank agreement, it has contributed an additional 50 mln dlrs of capital to Allied. Campeau acquired Allied Stores Corp earlier this year, the company said. .I 506 .C interest 1 .T CCC INTEREST RATE FOR APRIL IS SIX PCT -- USDA. .W WASHINGTON, April 1 - The Commodity Credit Corporation (CCC) interest rate on loans disbursed in April will carry a six pct ionterest rate, the U.S. Agriculture Department said. The April rate is up from March's 5-7/8 pct and reflects the interest rate charged CCC by the U.S. Treasury, the department said. .I 509 .C acq 1 .T STANDARD OIL COMMITTEE TRIED TO DELAY BID. .W NEW YORK, April 1 - A committee of independent directors of the Standard Oil Co unsuccessfully sought a delay in a tender offer for Standard shares by British Petroleum Co plc, according to offering documents. BP's offering document for its 70 dlr per share offer describes discussions with Douglas Danforth, who chairs a special committee of independent directors responsible for monitoring relations with BP. BP has been owner of a 55 pct stake in Standard for several years. According to the document, the committee's counsel said it needed one to two months to evaluate the offering price. Danforth, who is chairman of the Westinghouse Electric Co , first learned of BP's interest in acquiring the rest of Standard in a telephone call March five from Sir Peter Walters, chairman of BP. At a meeting march nine, Danforth informed BP that the special committee had hired First Boston Corp as its financial adviser and also retained independent counsel. Danforth's concerns that the special committee did not have sufficient time were expressed to Walters in a telephone conversation and reiterated in a letter from counsel on Monday of this week. .I 511 .C earn 1 .T ******BANKAMERICA SAYS 1ST QTR NET TO BE CUT BY 40 MLN DLRS DUE. .W TO BRAZILIAN LOANS .I 513 .C earn 1 .T ******BANKAMERICA SAYS IT EXPECTS TO REPORT A PROFIT FOR. .W FIRST-QUARTER 1987 .I 514 .C crude 1 .T MOBIL RAISES WEST COAST CRUDE POSTINGS. .W New York, April 1 - Mobil Corp said it raised its west coast crude postings, effective today. The Buena Vista light grade, at 26 degrees api gravity, was raised 1.35 dlrs a barrel to 15.55 dlrs/bbl, while the Huntington Beach light grade, at 16 degrees, was raised about 1.75 dlrs/bbl to 14.10 dlrs/bbl. The heavier Wilmington grade, at 17 degrees, was increased 1.20 dlrs to 14.30 dlrs/bbl. Kern River crude, at 13 degrees, was increased 1.00 dlr to 13.00 dlrs/bbl. Mobil also said that effective today it changed its gravity adjustment scale as follows: From 20 degrees to 34 degrees API, Mobil will adjust its price 0.015 of a ct per one-tenth of an API degree. Below 20 degrees API, the company will adjust its price 0.020 ct per one-tenth of a degree. Crude grades from 34 degrees API to above 40 degrees are unaffected. .I 516 .C earn 1 .T STRAWBRIDGE DECLARES STOCK DIVIDEND. .W PHILADELPHIA, April 1 - Strawbridge and Clothier said its board declared a seven pct stock dividend, payable May 14 to holders of record April 14. Earlier, the company reported net income of 20.7 mln dlrs. .I 521 .C earn 1 .T ******LAIDLAW DECLARES THREE FOR TWO SPLIT, BOOSTS PAYOUT to. .W 5-1/4 CTS/SHR FROM FOUR CTS .I 522 .C earn 1 .T TRANSDUCER SYSTEMS INC YEAR. .W KULPSVILLE, PA, April 1 - Shr profit 12 cts vs loss 49 cts Net profit 117,000 vs loss 506,000 Revs 1.1 mln vs 1.2 mln Year Shr profit seven cts vs loss 89 cts Net profit 66,000 vs loss 921,000 Revs 4.4 mln vs 3.9 mln NOTE:1986 reflects tax benefit of 24,000. 1985 reflects tax benefit of 186,000 for quarter and 573,000 for year. .I 524 .C earn 1 .T LAIDLAW TRANSPORTATION LTD 2ND QTR NET. .W Toronto, April 1 - period ended February 28 Shr 26 cts vs 14 cts Net 28.4 mln vs 15.2 mln Revs 305.7 mln vs 179.6 mln Six mths Shr 50 cts vs 28 cts Net 54.6 mln vs 30.3 mln Revs 586.2 mln vs 359.8 mln Avg shrs 100,362,000 vs 91,360,000 .I 526 .C acq 1 .T CENTURY BUSINESS CREDIT GETS OFFER. .W NEW YORK, April 1 - Century Business Credit Corp said it received an offer from Stanley Tananbaum, chairman and chief executive officer, to take the company private in a transaction giveing shareholders 24.40 dlrs per share in cash. There were 603,106 shares outstanding as of December 31. The independent directors said they will engage an expert to evaluate the fairness of the offer. .I 529 .C earn 1 .T LAIDLAW SPLITS STOCK, HIKES PAYOUT. .W Toronto, April 1 - Three for two stock split Pay and record date subject to shareholder confirmation May four Qtly dividend 5-1/4 cts vs four cts Pay May 15 Record May one Note: dividends declared on pre-split shares. Laidlaw Transportation Ltd .I 530 .C interest 1 .T SECURITY PACIFIC, PROVIDENT NATIONAL LIFT PRIME. .W NEW YORK, April 1 - Security Pacific National Bank and Provident National Bank said they increased their prime lending rates a quarter point to 7-3/4 pct. They said the move is effective immediately. .I 531 .C earn 1 .T ******J.P. MORGAN SAYS BRAZIL ACTION WILL REDUCE FIRST QUARTER. .W NET BY ABOUT 20 MLN DLRS .I 532 .C earn 1 .T HOUSTON INDUSTRIES INC INCREASES DIV. .W HOUSTON, April 1 - Qtly div 72 cts vs 70 cts prior Payable June 10 Record May 15 .I 533 .C acq 1 .T EMERY PLANS PUROLATOR ASSET SALES. .W WASHINGTON, April 1 - Emery Air Frieght Corp, which has launched a 40 dlr a share tender offer for 83 pct of Purolator Courier Corp, said it would sell some Purolator assets to help pay the estimated 265 mln dlr cost of the stock purchase deal. In a filing with the Securities and Exchange Commission, Emery said it would sell or lease Purolator's air hub in Indianapolis, Ind., which is currently under construction, and would divest Purolator's Stant Inc subsidiary. No indications of interest for the assets have been received so far, Emery said. Emery said it would operate Purolator as a subsidiary if it succeeded in the takever, but would integrate its air hub. It said it plans to finance its stock purchases with borrowings from Chemical Bank, Morgan Guaranty Trust Co of New York, Bankers Trust Co and Salomon Brothers Holding Co Inc, the parent of Salmon Brothers Inc, Emery's financial advisor. Emery said it already has a commitment letter from its banks for up to 129.9 mln dlrs for the stock purchases. An unspecified amount of internally generated funds would also be used for the stock purchases, it added. .I 534 .C earn 1 .T CENTURY BUSINESS CREDIT CORP 4TH QTR. .W NEW YORK, April 1 - Shr 39 cts vs 31 cts Net 232,991 vs 198,185 Revs 2.9 mln vs 2.3 mln Year Shr 2.20 dlrs vs 1.12 dlrs Net 1.3 mln vs 715,113 Revs 11.3 mln vs 10.1 mln NOTE:1986 revs includes 260,000 dlr finder's fee , net includes 112,000 gain from sale of securities, 115,000 dividends, 78,000 dlrs from lease recalculations. 1985 revs includes 700,000 finder's fee and 75,000 gain from sale of asset. .I 537 .C acq 1 .T IC INDUSTRIES UNIT TO SELL OFF MORE TRACK. .W CHICAGO, April 1 - Illinois Central Gulf Railroad, a subsidiary of IC Industries Inc, said it will complete the sale to the Chicago, Missouri and Western Railway of its 631-mile line from Joliet, Ill., to St. Louis by April 30. The Chicago, Missouri is a wholly owned subsidiary of the Venango River Corp, a transportation holding company. It said the purchase price of the line is 81 mln dlrs. The Chicago, Missouri will employ 625 workers and start operation immediately upon closing of the transaction. .I 539 .C grain 1; corn 1 .T STRONG DEMAND FOR U.S. CORN IN JAPAN -- USDA. .W WASHINGTON, April 1 - Japan appears to be relying less on corn from China, Argentina and South Africa and more on supplies from the United States, the U.S. Agriculture Department said. In its World Production and Trade report, the department said in the past seven weeks reported U.S. corn sales of nearly three mln tonnes to Japan are about three times the level during this period last year. Reports of short Argentine supplies and the apparent unwillingness of the Chinese to sell at current world prices may have caused Japanese buyers to turn to the United States for corn supplies, the department said. .I 540 .C nat-gas 1 .T ******BRITISH PETROLEUM RAISES NORTH SEA BUTANE PRICES BY 15.50. .W DLRS A TONNE TODAY .I 541 .C nat-gas 1 .T BP RAISES NORTH SEA BUTANE PRICES. .W NEW YORK, April 1 - British Petroleum Co plc said it raised its posted butane prices by 15.50 dlrs per tonne to 123 dlrs, fob north sea, effective today. Posted propane prices were unchanged at 110 dlrs per tonne, the company said. .I 543 .C fuel 1 .T ATLANTIC TO RAISE HIGH SULPHUR FUEL PRICES. .W NEW YORK, April 1 - Atlantic Fuels Marketing Corp said today it will raise the posted cargo prices for high sulphur fuels in New York Harbor 50 to 75 cts per barrel, effective April two. The increase brings the prices for two pct sulphur to 19.25 dlrs, up 50 cts, 2.2 pct sulphur to 18.75 dlrs, up 50 cts, 2.5 pct sulphur to 18.50 dlrs, up 50 cts, 2.8 pct sulphur to 18.25 dlrs, up 75 cts, the company said. Posted prices for 0.3 pct and one pct low sulphur fuels were unchanged at 22 and 20 dlrs, it said. .I 544 .C interest 1 .T FIRST NATIONAL BANK OF BOSTON RAISES PRIME. .W NEW YORK, April 1 - The First National Bank of Boston, the main banking unit of Bank of Boston, said it is raising its prime lending rate to 7.75 pct from 7.50 pct, effective immediately. .I 545 .C earn 1 .T GENCORP TAKES NO ACTION ON STOCK DIVIDEND. .W AKRON, Ohio, April 1 - Gencorp Inc said its board took no action with respect to a two pct stock dividend at its annual meeting yesterday due to the press of other business, specifically the company's pending takeover offer by General Acquisition Corp, formed by AFG industries inc and Wagner and brown. A spokesman said the two pct stock dividend, normally issued everly year, was not issued in February because the company was examining other dividend alternatives. Management said it would give consideration to this matter at a later time. Yesterday, the company's chairman, A. William Reynolds, told shareholders he would be presenting an alternative to the 100 dlrs a share takeover offer within a week. .I 546 .C earn 1 .T MORGAN PLACES BRAZIL LOANS ON NONACCRUAL. .W NEW YORK, April 1 - J.P. Morgan and Co Inc, parent of Morgan Guaranty Trust Co of New York, said that it will place 1.3 billion dlrs of medium- and long-term loans to Brazil on a non-accrual basis, matching similar action by BankAmerica Corp earlier today. The move, which follows Brazil's suspension of interest payments on 68 billion dlrs of commercial bank debt on February 20, is expected to reduce first quarter net income by about 20 mln dlrs, of which four mln dlrs represents interest accrued prior to 1987 but still uncollected, the bank said. Morgan earned 233.9 mln dlrs in the first quarter of 1986. Morgan also said that, based on current interest rates and assuming cash interest payments are not received for the rest of the year, 1987 net income would be reduced by about 72 mln dlrs. 1986 net income was 872.5 mln dlrs. Although U.S. banks do not have to put loans on nonaccrual until they are over 90 days past due, Morgan said some of the loans affected by the Brazil payment freeze may reach the 90-day limit during the second and third quarters. Morgan said it assumes talks between Brazil and commercial bank lenders will proceed "expeditiously" and interest payments will resume at the earliest practicable date. .I 549 .C acq 1 .T GOULD COMPLETES SALE OF DIVISION. .W ROLLING MEADOWS, Ill., April 1 - Gould Inc said it has completed the sale of its Systems and Simulations Division to the unit's management for an undisclosed price. Gould said the move is part of its plan to divest its defense systems businesses and focus on its computer and electronics sectors. Gould added that it accounted for the division as a discontinued operation. .I 551 .C grain 1; corn 1 .T FRENCH SUBSIDIZED CORN FOR TUNISIA/MOROCCO-USDA. .W WASHINGTON, April 1 - U.S. corn sales to Tunisia, Morocco and other North African countries may face increased competition from European Community (EC) corn sales, the U.S. Agriculture Department said. In its World Production and Trade report, the USDA said sales of French corn for nearby delivery have been confirmed with an export subsidy of about 145 dlrs per tonne, bringing the French price to about 72 dlrs per tonne, FOB. While this is about the same price as U.S. corn, EC corn has lower transport costs, the department noted. The French sales mark the beginning of commercial EC corn exports which could reach 750,000 tonnes to North Africa and the Middle East, areas which have traditionally purchased their corn needs from the United States, the department said. Department officials said the 750,000 tonnes of exports are for the year up to September 30 1987. They said export licenses for about 500,000 tonnes have been issued so far. .I 553 .C wheat 1; grain 1 .T NEW ZEALAND MAY BUY U.S. WHEAT -- USDA. .W WASHINGTON, April 1 - New Zealand may need about 100,000 tonnes of wheat this year, which would normally come from Australia, but may be from the United States, the U.S. Agriculture Department said. In its report on Export Markets for U.S. Grains, the department said with the deregulation of the New Zealand Wheat Board, which normally imports wheat from Australia, there is the possibility of wheat purchases from the united states since the shipping cost between New Zealand and the Eastern Coast of Australia and the West Coast of the United States are about equal. .I 555 .C ship 1; grain 1 .T GRAIN SHIPS LOADING AT PORTLAND. .W PORTLAND, April 1 - There were five grain ships loading and three ships were waiting to load at Portland, according to the Portland Merchants Exchange. .I 559 .C acq 1 .T FRENCH FIRM HAS FIVE PCT OF CALIF. WATER . .W WASHINGTON, April 1 - Compagnie Generale Des Eaux , a French water, waste treatment and disposal, heating, ventilation and air conditioning concern said it has a 5.0 pct stake in California Water Service Co. In a filing with the Securities and Exchange Commission, Compagnie Generale said it bought its 139,200 California Water shares for a total of 7.0 mln dlrs for investment purposes. While it said it might acquire more shares in the company, it said it has no plans to seek control of it. .I 560 .C livestock 1 .T USDA REPORT ON CATTLE SLAUGHTER, MEAT PURCHASES. .W WASHINGTON, April 1 - The U.S. Agriculture Department said an estimated 8,700 head of dairy cattle were slaughtered during the week ending March 13 as a result of the Whole Herd Dairy Buyout program. The cumulative total of cattle slaughtered under the program from April 1 through March 13 is estimated at 1,032,300 head, it said. Cumulative meat purchases through March 27 total 376,897,330 lbs, the department said. Dairy cattle reported for export under the program for the period April 1 through March 27 totaled an estimated 55,055 head, the department said. Live cattle exports are in addition to the meat purchase requirements, the department said. .I 561 .C interest 1 .T MAJOR U.S. BANKS MOVE TO HIGHER 7-3/4 PCT PRIME. .W NEW YORK, April 1 - Most major U.S. banks today matched Tuesday's quarter-point prime rate cuts by Citibank and Chase Manhattan Bank, the first prime rate boosts since mid-1984. Most cited narrower spreads between the prime and funding costs as justification. Analysts said the prime rate rises may have been triggered partly by a desire by banks to enhance profit margins given problems with developing country loans. Commenting on the prime rate increases, U.S. Treasury Secretary James Baker told a House Appropriations Committee that "I hope it was a temporary blip upward." Among the major banks which today announced prime rate increases to 7-3/4 pct were Bankers Trust, Chemical Bank, Continental Illinois National Bank, Harris Trust and Savings Bank, Irving Trust, Manufacturers Hanover Trust Co, Marine Midland, and Security Pacific National Bank. Other banking companies announcing prime rate rises included Pittsburgh National Bank, Texas Commerce Bank-Houston, Provident National Bank, First National Bank of Boston, Florida Federal Savings and Loan Association, and SunTrust Banks. .I 562 .C earn 1 .T JEM RECORD INC 2ND QTR JAN 31. .W SOUTH PLAINFIELD, N.J., April 1 - Shr three cts vs seven cts Net 52.1 mln vs 112,713 Revs 5.1 mln vs 4.4 mln Six months Shr five cts vs 15 cts Net 75,605 vs 244,119 Revs 9.5 mln vs 9.5 mln .I 564 .C interest 1 .T UNION BANK RAISES ITS PRIME RATE TO 7.5 PCT. .W LOS ANGELES, April 1 - The Union Bank subsidiary of Standard Chartered PLC said today it was raising its prime lending rate to 7.75 pct from 7.50 pct, effective immediately. .I 565 .C dlr 1; interest 1 .T FURTHER DECLINES IN U.S. DEBT FUTURES POSSIBLE. .W By Brad Schade, Reuters CHICAGO, April 1 - After an already steep fall in the past week, U.S. interest rate futures may be in for further declines in the near term, financial analysts said. However, some analysts said recent sharp losses in bond futures have left the bond market somewhat oversold, and the contracts on long-term debt could stage a recovery before resuming their decline. Key to the near-term direction of futures will be the course of the dollar, they said. "As the dollar goes, so goes the bond market," said Dean Witter analyst Karen Gibbs. The recent decline in the dollar, which hit a 40-year low against the Japanese yen Monday, was reversed Wednesday when several large U.S. money center banks unexpectedly raised their prime lending rates by a quarter point, to 7-3/4 pct. "Even though the prime rate cut was good for the dollar, foreign exchange traders are not convinced the dollar decline is over," Gibbs said. The dollar decline was key in recent weakness in debt futures as it rekindled concern about a pickup in inflation. Indeed, the falling dollar may have been a key topic at the meeting of the Federal Reserve's policy making arm, the Federal Open Market Committee, this week, analysts said. "To the Fed, the combination of a falling dollar, a steepening yield curve, and rising commodity prices look suspiciously like the traces of expectations of accelerating inflation," said Denis Karnosky, analyst at Carroll, McEntee and McGinley Inc. Such expectations could mean that "a shift in policy toward restriction of bank reserves is likely to get very serious consideration," at the FOMC meeting, he said. Any such restriction of reserves will not be a highly visible form of monetary tightening, Karnosky said. Rather, the key to detecting a change will be found in seasonal and adjustment borrowing at the discount window, he said. Borrowings have held near a weekly average of 300 mln dlrs over the past several months, he said. In the meantime, however, "the market looks a bit oversold," said Jim Wysoglad, analyst at Golden Gate Futures. Wysoglad said a recovery from the oversold condition could drive June bonds to a high near 99 before falling back to test chart support near the recent low of 97-13/32. Technician Leslie Keefe of Technical Data Corp of Boston said that the key test for June bonds will be whether the nearby contract holds above chart support at 96-24/32. "All previous selloffs since mid-November have stopped and buyers have surfaced at that level," Keefe said. If that level is broken, and the dollar continues to decline, Keefe said she expects the June bond contract to decline to test support between 92 and 93, the primary uptrend line dating back to 1984. .I 566 .C grain 1 .T USDA GRAIN INSPECTION ADVISORY COMMITTEE MEETING. .W WASHINGTON, April 1 - The Federal Grain Inspection Service Advisory Committee will meet here Monday, April 13, the U.S. Agriculture Department said. Items on the agenda for the meeting, which is scheduled to begin at 0830 edt, are grain-quality issues, status of proposed regulations, financial matters and safety matters, the department said. The Federal Grain Inspection Service Advisory Committee is composed of 12 members representing the grain industry who provide advice to the administrator of the Federal Grain Inspection Service. .I 567 .C acq 1 .T DEAK BUYS JOHNSON MATTHEY COMMODITIES. .W NEW YORK, APRIL 1 - Deak International, a foreign currency and precious metals firm, announced the acquisition of Johnson Matthey Commodities of New York from Minories Finance Limited, a unit of the Bank of England. The purchase valued at 14.8 mln dlrs follows the recent acquisition of London's Johnson Matthey Commodities Limited, Deak said. The New York firm will be known as Deak International Trading Ltd, the company said. Arkadi Kuhlmann, president and chief executive officer of Deak International, said the purchase will expand Deak's operations in precious metals and wholesale non-ferrous metals trading. .I 568 .C coffee 1 .T COFFEE FUTURES AT SIX-YEAR LOW, UNDER 1 DLR/LB. .W CHICAGO, April 1 - Coffee futures dipped further today and closed below 1 dlr a pound for the first time in six years. Coffee for delivery in May ended at 99.28 cents a pound on the Coffee, Sugar and Cocoa Exchange, down 0.76 cent and the lowest price since August, 1981. Prices have been falling steadily since the International Coffee Organization failed in February to reach an agreement controlling exports by its members, and pressure was renewed this week as the executive board of the organization met in London without reopening debate on its export quotas. The executive board has limited its current discussions to administrative matters and is set to adourn Thursday. Burdensome supplies have pressed the market down from 1.30 dlr a pound in February, when the organization's discussions aimed at re-establishing export quotas broke down. Sandra Kaul, a coffee analyst in New York with Shearson Lehman Brothers, said supplies currently are at their high point for the year because most producing nations have just completed their harvests. In addition, she said, many of those nations are faced with serious debt and need to sell coffee to raise capital. "This should keep substantial pressure on exporters to undertake sales despite the drop in prices," she said. Further, U.S. demand could be sluggish because winter, the period of greatest consumption, is ending. Prices could fall another 10 cents to 15 cnts a pound, analysts said. Gold futures retreated from modest early gains and closed steady while silver prices rallied on the Commodity Exchange in New York. The increase in U.S. banks' prime rates prompted concern about renewed inflation, but the strength of the U.S. dollar discouraged new buying. "The market is getting mixed signals and it doesn't know which way to go," one analyst said. Gold futures retreated from modest early gains and closed steady while silver prices rallied on the Commodity Exchange in New York. The increase in U.S. banks' prime rates prompted concern about renewed inflation, but the strength of the U.S. dollar discouraged new buying. "The market is getting mixed signals and it doesn't know which way to go," one analyst said. .I 569 .C earn 1 .T BELDEN AND BLAKE ENERGY CO 4TH QTR. .W NEW YORK, APril 1 - Shr loss 1.92 dlrs vs profit five cts Net loss 5.6 mln vs profit 136,598 Revs 1.4 mln vs. 2.5 mln Year Shr loss 3.81 dlrs vs profit 21 cts Net loss 10.8 mln vs profit 435,176 Revs 7.6 mln vs 9.4 mln NOTE:1986 4th qtr includes write-off of about 373,000 dlrs or 13 cts and writdown of assets of 4.0 mln dlrs. 1986 year includes 4.1 mln dlrs 1st qtr writedown. .I 572 .C acq 1 .T CROWN RESOURCES PLANS ENERGY UNIT SALE. .W DENVER, April 1 - Crown Resources Corp said it plans to sell its Oklahoma-based oil and gas unit as part of its strategy to focus on developing precious metals properties. The company said it bought the Wyona Water Flood Oil and Gas unit in 1984 for 650,000 dlrs. Crown said the Wyona field is fully developed with 28 producing wells. Current oil production is 80 barrels a day, it said, adding that no gas was produced for sale in 1986. .I 573 .C acq 1 .T M.D.C. HOLDINGS SELLS ENERGY UNIT. .W DENVER, April 1 - M.D.C. Holdings Inc said it sold substantially all the assets of its oil and gas unit, Mizel Petro Resources Inc, and affiliated partnerships, for 38 mln dlrs in cash to , Midland, Texas. The company said that, subject to certain post-closing adjustments, it expects to post a small profit on the sale. .I 574 .C earn 1 .T LIVINGWELL INC YEAR. .W HOUSTON, April 1 - Shr six cts vs three cts Net 1.7 mln vs 3.1 mln Revs 187.3 mln vs 129.7 mln NOTE:Increase in earnings due to elimination of preferred dividend requirements. .I 576 .C oilseed 1; soybean 1 .T MEXICO BUYS 51,000 TONNES U.S. SOYBEANS. .W KANSAS CITY, April 1 - Mexico bought 51,000 tonnes of U.S. number two yellow soybeans in an overnight tender, for various ocean and rail shipments in May, private export sources said. About 40,000 tonnes sold for ocean shipment at prices ranging from 199.67 to 210.17 dlrs per tonne, c and f, and about 11,000 tonnes sold for rail shipment at prices from 205.50 to 217.88 dlrs per tonne, they said. .I 578 .C acq 1 .T FIDELCOR UNIT ACQUIRES LAZERE FINANCIAL. .W NEW YORK, April 1 - Fidelcor Inc's Fidelcor Business Credit Corp subsidiary said it reached a definitive agreement to acquire a substantial portion of the Bank of New England Corp's Lazere Financial Corp's assets. Terms of the acquisition were not disclosed. The acquisition is subject to approval of the Federal Reserve Board. Fidelcor said it would acquire most of Lazere's loan portfolio and other assets, including its Miami office. It said it plans to hire the majority of Lazere's 100 employees. .I 579 .C earn 1 .T SUNSTATES CORP 4TH QTR. .W JACKSONVILLE, Fla, April 1 - Shr loss 3.51 dlrs vs loss 6.14 dlrs Net loss 3.2 mln vs loss 6.6 mln Year Shr loss 2.38 dlrs vs loss 5.17 dlrs Net loss 692,872 vs loss 4.5 mln NOTE:1986 loss includes loss of 301,000 for discontinued oeprations vs a loss of 5.5 mln dlrs net of a 1.4 mln credit in 1985. 1985 4th qtr includes loss of 3.5 mln dlrs for discontinued operations. share amts relfect dividend requirements. .I 580 .C earn 1 .T YEAR NOV 30 NET. .W TORONTO, April 1 - Shr 86 cts vs 79 cts Net 4,042,000 vs 3,549,000 Revs 59.7 mln vs 47.3 mln .I 581 .C earn 1 .T YEAR LOSS. .W TORONTO, April 1 - Shr loss 27 cts vs loss 2.27 dlrs Net profit 2,150,000 vs loss 14,700,000 Revs 121.3 mln vs 69.8 mln Note: shr after payment of preferred stock dividends .I 583 .C coffee 1 .T COFFEE FUTURES UNDER DLR A POUND AT SIX-YEAR LOW. .W CHICAGO, April 1 - Coffee futures dipped further and closed below one dlr a pound for the first time in six years. Coffee for delivery in May ended at 99.28 cents a pound on the New York Coffee, Sugar and Cocoa Exchange, down 0.76 cent and the lowest price since August, 1981. Prices have fallen steadily since the International Coffee Organization failed in February to reach an agreement controlling exports by its members, and pressure was renewed this week as the executive board of the organization met in London without reopening debate on its export quotas. The executive board has limited its current discussions to administrative matters and is set to adourn Thursday. Burdensome supplies have pressed the market down from 1.30 dlrs a pound in February, when the organization's discussions aimed at re-establishing export quotas broke down. Sandra Kaul, a coffee analyst in New York with Shearson Lehman Brothers, said supplies currently are at their high point for the year because most producing nations have just completed their harvests. In addition, she said, many of those nations are faced with serious debt and need to sell coffee to raise capital. "This should keep substantial pressure on exporters to undertake sales despite the drop in prices," she said. Further, U.S. demand could be sluggish because winter, the period of greatest consumption, is ending. Prices could fall another 10 to 15 cents a pound, analysts said. Gold futures retreated from modest early gains and closed steady while silver prices rallied on the Commodity Exchange in New York. The increase in U.S. banks' prime rates prompted concern about renewed inflation but the strength of the U.S. dollar discouraged new buying. "The market is getting mixed signals and it doesn't know which way to go," one analyst said. Cattle futures posted new highs on the Chicago Mercantile Exchange, while live hogs rallied from early losses and frozen pork bellies finished sharply lower. Cattle prices continued to draw support from the winter storm that swept the Plains states, leaving animals stranded in snowbound fields and feed lots in miserable condition. Live hogs were pressured early by the Agriculture Department's report Tuesday that producers expanded their breeding herds more than the market expected last quarter. Prices recovered to keep pace with higher cash prices. Frozen pork bellies fell sharply on the outlook for greater production and closed with limit losses. Soybean futures posted sharp gains on the Chicago Board of Trade, while corn and wheat were lower. Soybeans rallied in response to Tuesday's USDA report that farmers intend to plant 56.9 mln acres this year, down from 61.5 mln planted last year. Corn prices were pressured by the outlook for 67.6 mln acres of corn, which is down from last year's 76.7 mln acres, but was larger than analysts expected. .I 584 .C acq 1 .T INVESTMENT ADVISORS HAVE 10 PCT OF KILLEARN. .W WASHINGTON, April 1 - Two executives of a Memphis, Tenn., investment advisory firm told the Securities and Exchange Commission they have acquired 132,000 shares of Killearn Properties Inc, or 10.4 pct of the total outstanding. The executives, O. Mason Hawkins and William Reid, who work for Southeastern Asset Management Inc, said they bought their Killearn stock with personal funds as an investment. While they said they might increase their stake Killearn Properties, they said they have no plans to seek control of it. .I 589 .C meal-feed 1 .T ARGENTINE GRAIN/OILSEED EXPORT PRICES ADJUSTED. .W BUENOS AIRES, April 1 - The Argentine grain board adjusted minimum export prices of grain and oilseed products in dlrs per tonne FOB, previous in brackets, as follows: Sunflowerseed cake and expellers 99 (97), pellets 97 (95) and meal 95 (93). Sunflowerseed oil for shipments through May 308 (300) and June onwards 314 (307). Linseed cake and expellers 137 (136), pellets 115 (114) and meal 105 (104), all for shipments through June. Linseed cake and expellers 146 (145), pellets 124 (123) and meal 114 (113), all for shipments July onwards. Soybean cake and expellers 169 (167), pellets 162 (160) and meal 152 (150), all for shipments through May. Soybean cake and expellers 166 (164), pellets 159 (157) and meal 149 (147), all for shipments June onwards. .I 590 .C earn 1 .T SAVOY INDUSTRIES INC YEAR. .W NEW YORK, April 1 - Shr loss 42 cts vs loss five cts Net loss 4.0 mln vs loss 446,000 Revs 58.9 mln vs 70.3 mln NOTE:1986 net includes gain of 40 cts from discontinued operations. 1985 net includes gain of 22 cts from discontinued operations. .I 592 .C earn 1 .T AMERICAN HOIST AND DERRICK CO 1ST QTR NET. .W SAINT PAUL, Minn., April 1 - Qtr ended March 14. Shr profit 32 cts vs loss 1.30 dlrs Net profit 2,704,000 vs loss 7,589,000 Rev 105.2 mln vs 82.3 mln NOTE: Qtr net includes extraordinary gain of 1.1 mln dlrs. .I 594 .C ship 1; grain 1 .T N.Y. GRAIN FREIGHTS - April 1. .W Tradax took Y.S. Tonnage 52,000 tonnes U.S. Gulf to Japan early May dates 16.00 dlrs 11 days all purposes Tradax took Dimitrios 76,000 tonnes any grains 4,952,000 grain cubics U.S. Gulf to Holland May 1-10 8.50 dlrs 12 days all purposes ADM took Ymuiden Maru 93,500 tonnes DWCC 4,726,937 grain cubics U.S. Gulf to Holland April 20-30 lumpsum 675,000 dlrs 11 days all purposes Dreyfus took Golden Crown 20,000 tonnes U.S. Gulf to East Coast Mexico April 6-10 10.00 dlrs 1,500 discharge Marubeni took NYK TBNs 52,000 tonnes HSS seven times U.S. Gulf to Japan July 1987-January 1988 dates 14.25 dlrs 9,000 load 6,500 discharge .I 596 .C acq 1 .T AMERICAN BARRICK SELLS COAL ASSETS. .W TORONTO, April 1 - American Barrick Resources Corp said it sold two coal supply agreements and certain mining equipment, representing substantially all of the assets of its two Ohio coal mines, to Peabody Coal Co, of Kentucky. Terms were not disclosed. Proceeds from the sale combined with the sale of the company's remaining coal assets should result in full recovery of its investments in the operations, the company said without further elaborating. The sale will complete the planned disposition by American Barrick of all its non-gold assets, it said. .I 599 .C ship 1; crude 1 .T N.Y. TANKERS - April 1. .W Citgo took West Virginia 62,000 tons dirty April 9 Caribbean to U.S. Gulf worldscale 63 .I 600 .C oilseed 1; veg-oil 1; wheat 1; grain 1; sugar 1; corn 1; livestock 1; cotton 1; groundnut 1; carcass 1 .T U.S. HOUSE PANEL EXTENDS EEP, URGES USSR OFFER. .W WASHINGTON, APRIL 1 - The U.S. House Agriculture Committee approved proposals to extend the life of the Export Enhancement Program, EEP, through fiscal 1990 and urged the Reagan administration offer EEP wheat to the Soviet Union. The proposals were approved as amendments to a comprehensive trade bill moving through Congress this year. In addition to the amendments on EEP, the committee approved several proposals which could restrict imports of lamb, casein, sugar-containing products and tobacco. Those amendments affecting imports face an uncertain future because the House Ways and Means Committee, which has overall jurisdiction over trade legislation, will oppose them, Congressional sources said. The effect of the EEP amendments would be to extend the life of the program five years through fiscal 1990 rather than the current three years through fiscal 1988. The amendments, offered by Rep. Dan Glickman, D-Kan., also would increase funding for the program to 2.5 billion dlrs from 1.5 billion now. Furthermore, the committee passed an amendment offered by Rep. Glickman which instructs the U.S. Agriculture Department to value EEP bonus commodities at market value, not acquisition value. Glickman said the change would make the program 30 pct less expensive to operate. The provision on EEP wheat to the Soviet Union, offered by Rep. Bob Smith, R-Ore., does not require the administration make an offer, but urges such action. The committee approved an amendment, offered by Rep. Glenn English, D-Okla., requiring the Secretary of Agriculture to begin discussions with other major grain producing countries aimed at jointly reducing world grain production. Trade Representative Clayton Yeutter yesterday opposed the amendment, saying such commodity agreements do not work. Among the host of amendments to restrict imports approved by the panel, the most significant would require quotas on imports of goods containing more than 25 pct of a bulk farm product that is subject to U.S. quotas. The amendment, offered by Rep. Arlan Stangeland, R-Minn., is aimed primarily at curbing imports from Canada of products containing sugar and foreign foods containing dairy products. It also may affect peanut, cotton and tobacco imports, Committee sources said. Another amendment would place a quota on U.S. imports of casein, a dairy product shipped to the U.S. primarily by New Zealand and Ireland. The panel also voted to apply to lamb imports the same countercyclical import quota law which is operating for U.S. beef imports. Other miscellaneous amendments included: -- Urging the administration consider retaliating against Japan and South Korea if those countries do not remove restrictions on beef imports. -- Boosting the amount of U.S. grain which must be shipped each year under a food aid program called Section 416 to 800,000 tonnes from 500,000 tonnes now. -- Requiring the Agriculture Secretary conduct a study of the Canadian Wheat Board import licensing system for wheat to determine if it is a non-tariff trade barrier. -- Requiring the Agriculture Secretary reimburse the National Corn Growers Association up to 500,000 dlrs for the costs of defending the U.S. feedgrains program against a Canadian countervailing duty case this year. -- Urging the administration oppose the Canadian decision to apply a duty on U.S. corn imports, and a proposal by the European Community to apply a vegetable oils tax. -- USDA conduct a study of the findings of a National Commission on Agricultural Export Policy, which recommended a reorganization of USDA's trade policy apparatus. .I 602 .C acq 1 .T NOVAMIN BOARD TO RECOMMEND BREAKWATER BID. .W Vancouver, British Columbia, April 1 - said its board will recommend to shareholders the takeover offer made by Breakwater Resources Ltd. Breakwater is offering to exchange one Breakwater share for each two shares of Novamin, the company said. Breakwater will issue about 3.7 mln shares for all Novamin shares presently issued and outstanding. Additional shraes of Breakwater will be issued if warrants and options of Novamin are exercised. .I 603 .C meal-feed 1 .T U.S. FEED SITUATION SUMMARY REPORT DELAYED. .W WASHINGTON, April 1 - The U.S. Agriculture Department said its summary report on the Feed Situation and Outlook, scheduled for release April 24, has been delayed until May 15. The department said the delay will enable analysts to incorporate into the report USDA's first supply and demand estimates for the 1987/88 marketing year and data on farm program participation. .I 604 .C livestock 1; carcass 1 .T EXOTIC NEWCASTLE DISEASE IN MD/NEW YORK-USDA. .W WASHINGTON, April 1 - Exotic Newcastle, a highly contagious disease of pet birds and poultry, has been confirmed in two pet-bird dealer facilities in Maryland, and New York, the U.S. Agriculture Department said. The department said no domestic poultry are involved in the outbreak. State quarantines have been placed on the two facilities, in Hunt Valley, Maryland, and Schenectady, New York. The most serious U.S. outbreak of the disease occurred in 1971-73 in southern California, where the disease spread from infected pet birds to a dense poultry population and nearly 12 mln birds, mostly laying hens, were destroyed at a cost of 56 mln dlrs, the department said. .I 606 .C acq 1 .T NEWMONT MINING CORP REDUCES STAKE IN PEABODY. .W NEW YORK, APril 1 - Newmont Mining Corp said it completed the previously announced reduction of its share in to 49.97 pct from 61.47 pct. Newmont realized 116.8 mln dlrs in the transaction. For 1986, Newmont reported net income of 74.2 mln dlrs. Peabody, the largest coal producer in the U.S., had net income of 100.8 mln dlrs on sales of 1.4 billion dlrs in 1986. Newmont doubled its ownership in Peabody in January by purchasing 30.74 pct interest held by the Williams Cos for 320 mln dlrs. The reduction resulted from completion of an earlier announced agreement by Peabody to sell a 15.01 pct interest in the company to Eastern Gas and Fuel Associates in exchange for all the coal properties owned by Eastern. .I 607 .C earn 1 .T MR. GASEKT CO 3RD QTR DEC 31. .W CLEVELAND, April 1 - Shr loss 26 cts vs profit eight cts net loss 2.8 mln vs profit 897,000 Revs 27.0 mln vs 30.0 mln Nine months Shr loss 51 cts vs profit 46 cts Net loss 5.4 mln vs profit 4.9 mln Revs 88.4 mln vs 99.8 mln .I 608 .C earn 1 .T DELTAUS CORP YEAR. .W TYLER, Texas, April 1 - Shr loss 64 cts vs loss 1.70 dlrs Net loss 13.4 mln vs loss 35.6 mln REvs 47.9 mln vs 72.1 mln NOTE:1985 includes loss of 941,000 from discontinued operations and 5.8 mln dlrs from disposal of net asset solds. .I 610 .C earn 1 .T DEROSE INDUSTRIES INC 4TH QTR. .W TAMPA, Fla, April 1 - Shr loss 56 cts vs loss 71 cts Net loss 809,000 vs loss 1.0 mln Revs 5.3 mln vs 5.3 mln Year Shr loss 1.51 dlrs vs profit 61 cts Net loss 2.2 mln vs loss 2.3 mln Revs 26.5 mln vs 29.1 mln .I 611 .C earn 1 .T REVLON GROUP REPORTS 1986 RESULTS. .W New York, April 1 - Revlon Group Inc told the Securities and Exchange Commission it had net profits of 16,465,000 on sales of 1.61 billion dlrs for the year ended Dec. 31, 1986. Revlon in a filing with the SEC compared the results to the five months ending Dec. 31, 1985. In that period, it lost 28.4 mln dlrs on sales of 262.4 mln dlrs. Earlier today, MacAndrews and Forbes Group Inc began an 18.50 dlr a share cash offer for all common stock of Revlon it does not own. Revlon today rose 3/8 to 19-1/4 in active trading. MacAndrews controls 31.8 pct of the voting power. For 1986, Revlon said the loss applicable to common stock after preferred dividends is 9.5 mln dlrs. The net loss per share was 24 cts, compared to a net loss of 99 cts per share last year. Revlon said it had a 1986 operating profit of 64.3 mln dlrs, compared to a loss of 13.3 mln dlrs in the year earlier period. The 1986 net includes a provision for estimated loss on dispositions of 57.0 mln dlrs, compared to 15.1 mln dlrs the year earlier. Earnings in 1986 before extraordinary items were 7.4 mln dlrs. .I 614 .C acq 1 .T LIFETIME EXCHANGE OFFER ACCEPTED. .W NEW YORK, APril 1 - LIfetime Corp said Retirement Housing Corp has accepted its previously announced acquisition offer. Retirement will operate autonomously as a separate subsidiary. .I 617 .C earn 1 .T MANUFACTURERS PUTS BRAZIL ON NON-ACCRUAL. .W NEW YORK, April 1 - Manufacturers Hanover Corp said it placed 1.4 billion dlrs of medium- and long-term loans to Brazilian borrowers on non-accrual as of yesterday, meaning that income will be recorded only when actual cash payments are received. As a result, net income for the first quarter will be reduced by 18 mln dlrs. If Brazil, which suspended interest payments on its term debt on February 20, continues to defer interest payments for the rest of the year, net income for the whole of 1987 would be reduced by a total of 72 mln dlrs. U.S. bank accounting guidelines do not require loans to be placed on nonaccrual unless interest payments are past due 90 days or more. However, Manufacturers Hanover said that, in light of current circumstances, it was more appropriate to record income on its Brazilian loans only when cash payments were received. It added that it believes Brazil will reach agreement with its banks on a debt restructuring and that all interest payments will be received later in 1987. The company earned 102.1 mln dlrs in first-quarter 1986 and 410.7 mln dlrs for the whole of the year. .I 618 .C acq 1 .T GALVESTON TO AQUIRE MINE PROPERTY INTERESTS. .W TORONTO, April 1 - said it agreed in principle for an option to earn up to a 50 pct interest from in certain mining properties known as the Interlake Property, subject to regulatory approvals. Galveston said it will earn up to a 50 pct interest by spending a minimum of one mln dlrs in exploration and development work by December 31, 1989. It expects work will commence shortly and continue during the 1987 exploration season. Galveston also said it granted Hemlo Gold options to acquire up to two mln Galveston shares. It said the options can be exercised at 10 dlrs a share up to December 31, 1987, then at 12.50 dlrs a share until December 31, 1988, and then at 15 dlrs a share until December 31, 1989. Separately, Galveston said it agreed in principle with unit Noranda Explorations Ltd for an option to earn up to a 50 pct interest in a major mineral property located at the Baie Verte Peninsula, Newfoundland. Galveston can earn a 50 pct interest by spending six mln dlrs in exploration and development work on the property by December 31, 1989. The company also said it granted Noranda an option to purchase two mln Galveston shares. The options can be exercised at 10 dlrs a share until December 31, 1987, then at 12.50 dlrs a share until December 31, 1988, and then at 15 dlrs a share until December 31, 1989. .I 619 .C earn 1 .T YEAR LOSS. .W CALGARY, Alberta, April 1 - Shr loss 15.29 dlrs vs loss 2.80 dlrs Net loss 221.3 mln vs loss 40.4 mln Revs 146.3 mln vs 260.7 mln Note: 1986 loss includes extraordinary loss of 171.6 mln dlrs or 11.85 dlrs shr related to writedown of certain petrochemical assets and reduced by tax gain of 4.2 mln dlrs or 28 cts shr. 1985 results restated. .I 1470 .C earn 1 .T DEUTSCHE BANK SEES SLOW START TO 1987. .W FRANKFURT, April 2 - Deutsche Bank AG has seen a slow start to 1987 after posting record profits in 1986, management board joint spokesman F. Wilhelm Christians said. Credit business declined in the first few weeks of the year, and the interest margin was squeezed further. The weak German bourse saw earnings on commission fall sharply, and trading in securities also fell. But earnings from currency dealing were still satisfactory, he told a news conference. Deutsche group partial operating profits rose to 3.78 billion marks in 1986 from 2.92 billion in 1985 on a balance sheet of 257.22 billion marks after 237.23 billion. Profits were swollen by earnings from the placement of the former Flick group, which have been estimated at some one billion marks, and from record profits in trading on the bank's own account, not included in partial operating profits. Earnings from the Flick transaction were booked through a subsidiary, and therefore showed up as part of the interest surplus in a section current earnings from securities and participations. In the group this nearly doubled to 2.64 billion marks from 1.45 billion. As usual the bank did not detail total operating profits. But it said that total operating profits, including own account trading, rose 24.9 pct or 4.5 pct without the Flick transaction in the group, and 35.1 pct or seven pct in the parent bank. Banking analysts said this put group total operating profits at some 6-1/2 to seven billion marks, and parent bank operating profits at over five billion marks. Christians said Deutsche used the extraordinary earnings from Flick to pay a record five mark bonus on top of its unchanged 12 mark dividend. The bank had decided against raising the dividend itself because of the uncertain business outlook at the end of 1986, and developments so far this year showed that was correct, Christians said. West German banks rarely raise dividends unless they are sure they can maintain the increased payout in subsequent years, preferring to use bonuses for one-of profits. The bank also used its extraordinary earnings to continue a high level of risk provision, Christians said. Disclosed group risk provisions rose to 867 mln marks in 1986 from 765 mln in 1985. Under German law, disclosed provisions do not necessarily reflect the full amount of risk provisions. Management board joint spokesman Alfred Herrhausen said Deutsche's total debt exposure to problem countries had fallen to over six billion marks in 1986 from 7.4 billion in 1985 because of the fall in the dollar. He agreed with a questioner who asked if over two thirds of such problem country debt had been written off. Deutsche Bank posted a sharp rise in holdings of "other securities," to 4.64 billion marks from 2.71 billion in the parent bank. Christians said this 1.93-billion-mark rise was partly due to its increased activity in international share placements, with some shares such as those from Fiat SpA's international placement last year remaining on its books. Herrhausen said that no concrete measures were planned to place these shares and conclude the original placement. .I 1471 .C acq 1 .T DEUTSCHE AGREES FULL TAKEOVER OF FORMER EURASBANK. .W FRANKFURT, April 2 - Deutsche Bank AG has agreed to take over the outstanding 25 pct in , the former , from Creditanstalt-Bankverein , Deutsche management board joint spokesman Alfred Herrhausen told a news conference. Euras broke even in 1986 and required no funding from Deutsche, he said. He gave no details of the deal with Creditanstalt. Press reports that Deutsche was planning a takeover of Lloyds Bank plc were without foundation, he said. Herrhausen said Deutsche had taken part in the recent capital increase of , but had no plans to raise its 4.4 pct share in Morgan Grenfell. , in which 98.3 pct was acquired from Bankamerica Corp late last year, would be consolidated this year, and contribute to further expansion of Deutsche's business, management board joint spokesman F. Wilhelm Christians said. Following a ruling earlier this year from the Federal High Court, Deutsche had included its non-bank holdings in the balance sheet section "participations," Christians said. But Christians said the bank still regarded shares in these non-bank companies as an investment rather than an active participation. Parent bank total participations rose to 6.45 billion marks in 1986 from a comparable 4.57 billion in 1985 including a rise to 3.79 billion from 2.34 billion in bank participations. Herrhausen said the grouping of holdings in the balance sheet in this was was not a first step to floating them off in a separate holding company. .I 1472 .C dlr 1; money-fx 1; interest 1 .T WORLD RECESSION UNLIKELY - DEUTSCHE'S HERRHAUSEN. .W FRANKFURT, April 2 - A world recession is unlikely this year as fiscal and monetary policy in most industrialized countries is supporting the economy, Deutsche Bank AG management board joint spokesman Alfred Herrhausen said. But growth rates will be smaller than last year, with 1.5 to 2.5 pct likely in most industrialized countries, he told a news conference. Herrhausen said he was confident private consumption would support economic growth in West Germany this year, with net income increases turning into purchasing power as long as inflation did not revive. Herrhausen said he did not expect interest rates to rise in West Germany this year, but there was little room for further falls. Rates in the U.S. were however rising, as evidenced by the latest prime rate moves, but this rise would be moderate. Herrhausen said he did not expect any major narrowing of the U.S. Trade and budget deficits in the next few months. One success of the Paris agreement in February to foster currency stability was that U.S. Officials have stopped talking down the dollar, he noted. The recent stability would last until markets decided to test the resolve of central banks, he said. He noted that central banks had spent some 10 billion dlrs this week to stabilize the dollar against the yen in the first such test. "A massive attack on the mark, which could come if we get bad news out of the U.S., Would require a much higher intervention amount, raising the danger of inflation," he said. Turning to the international debt problem, Herrhausen said Brazil's unilateral debt moratorium had surprised banks. But the move showed that a real solution to debt problems was only possible with the involvement of all parties. .I 1473 .C earn 1 .T SINGAPORE BANKS SAY DIVERSIFICATION KEY TO GROWTH. .W By Tay Liam Hwee, Reuters SINGAPORE, April 2 - Singapore's major banks are diversifying and gradually shifting their asset holdings from loans to debt instruments, banking sources said. The banks following the trend are the , , and the . The shift towards securitisation has been helped by volatile financial markets which have developed hedging facilities such as floating rate notes and bonds for risk management, said Overseas Union General Manager Loh Hoon Sun. Loh told Reuters in an interview that Singapore banks see limited growth in credit risk. More and more of them are switching from term lending to major growth areas such as stockbroking and fee based income, he said. Major local banks ventured into stockbroking after being granted seats on the stock exchange. Bankers said they are now moving into the new government securities market and the Stock Exchange of Singapore Dealing and Quotation System. One foreign banker said the Development Bank and the Overseas Union Bank Ltd have become major players in the equity market in Singapore. Loh said the banks' participation in the stock market has increased business transactions and provided long term growth for the market. The banks are not competition for individual stockbroking firms because of the increased business they generate, he added. Loh said the Stock Exchange of Singapore might expand equity issues by as much as one billion dlrs this year because of the increasing ability of foreign and local market participants to absorb new issues. Loh said , a subsidiary of the Overseas Union Bank Ltd, has teamed up with a U.K. Firm to launch the Union Global Fund. The fund is for local investors seeking capital growth through a diversified international portfolio. It will invest in international shares with the emphasis on U.S. And Japanese markets, he said. , a subsidiary of the Development Bank of Singapore, has applied to the Hong Kong Stock Exchange to set up a Hong Kong stockbroking firm. Loh predicted fixed deposit and prime interest rates in Singapore will stay low this year. As a result, banks will be forced to provide fund management services for major clients seeking better returns, he said. Economic analysts and bankers are optimistic the major banks will show profits in 1987, helped by higher income from treasury and investment banking activities. They expect the 1987 after-tax profits of Oversea-Chinese and United Overseas to show stable growth of four to eight pct against respective gains of four and seven pct in 1986. Overseas Union's profits are expected to jump to over 40 mln dlrs from seven mln dlrs in 1986, economists said. The Development Bank's after-tax profits rose 39.2 pct in 1986 mainly due to a dividend of 20.4 mln dlrs paid by before it became a subsidiary of the bank, they said. .I 1474 .C interest 1 .T WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE. .W WELLINGTON, April 2 - Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct. .I 1475 .C coffee 1 .T THAI TRADERS OPPOSE REIMPOSITION OF COFFEE QUOTAS. .W BANGKOK, April 2 - Thai coffee exporters said they hoped the International Coffee Organisation (ICO) would not reimpose export quotas even though this may lead to a further slump in world prices. Susin Suratanakaweekul, president of the Thai Coffee Exporters Association, told Reuters that Thailand obtained little benefit from previous ICO quotas which represented only about 30 pct of its total annual exports. Thailand expects increased overall coffee export revenue if there are no restrictions on sales to current ICO members who offer higher prices than non-members, he said. The Customs Department said Thailand exported 21,404 tonnes of coffee last year, up from 20,602 in 1985. Thai coffee production is projected to fall to about 25,000 tonnes in the 1986/87 (Oct/Sept) season from 28,000 the previous year. However, a senior Commerce Ministry official said the Thai government supports coffee producers' lobbying for reimposed ICO quotas which, he said, would help lift world prices. Somphol Kiatpaiboon, director general of the Commercial Economics Department, said an absence of ICO quotas would encourage producers to rapidly release coffee on to the market, further depressing prices. He said Indonesia is expected to export a substantial amount of coffee this month without such restrictions. .I 1476 .C earn 1 .T SANWA BANK LOOKS TO SECURITIES, WORLD OPERATIONS. .W TOKYO, April 2 - The three-year business plan foresees securities and international operations making a greater contribution to operating profits, a bank official said. The bank's plan also emphasises retail and medium and small-sized business operations, he told Reuters. Officials at and outlined similar three-year plans. They said lower interest rates and financial liberalisation have cut profits from dealings with big firms to nearly nothing. "They don't need us, they can do their own financing," one official said. Sanwa Bank's plan forecasts that securities and international operations will contribute 40 pct of total operating profits by the end of the fiscal year ending March, 1990, compared with 30 pct in fiscal 1985, the Sanwa official said. .I 1477 .C cocoa 1; trade 1 .T JAPAN DENIES PLANS TO CUT DUTIES ON CHOCOLATE. .W TOKYO, April 2 - Agriculture Ministry officials said they are not considering cuts in import duties on chocolate to help ease friction with the United States over agricultural trade. Japan has already lowered the duties sharply and we must consider domestic market conditions, an official said. Duties on chocolate were cut to 20 pct from 31.9 pct in April 1983. Washington has been demanding a cut to seven pct, equivalent to its own duties, ministry sources said. Japanese chocolate imports rose to 8,285 tonnes in calendar 1986 from 5,908 in 1985, official statistics show. However, the ministry sources added it is possible the government may make further cuts in response to strong U.S. And European demand. "Due to concern about the farm trade row with the U.S., Top-level government officials may press the ministry to cut the duties," one said. But he said it would be difficult for Japan to resolve its overall trade row with Washington and reduce its trade surplus, which reached 58.6 billion dlrs in 1986. Agricultural trade issues between Japan and the U.S. Include Japanese import restrictions on 12 farm products. .I 1479 .C ipi 1 .T ****** German February industrial output rises 3.2 pct (January fall 3.4 pct) - official. .W Blah blah blah. .I 1480 .C pet-chem 1 .T INTERNATIONAL PACT ON OZONE DAMAGE LIKELY IN 1987. .W TOKYO, April 2 - An international protocol to severely limit the use of industrial chemicals which are believed to damage the earth's protective ozone layer could be signed this year, officials and scientists here said. "By the end of this year, we should have an international protocol in place we can all be proud of," U.S. Environmental protection agency officer Bill Long told reporters. The chemicals are chiefly chlorofluorocarbons (CFCs) which are used in refrigeration and making foam plastics, solvents and aerosols. The earth's upper ozone layer absorbs most of the harmful ultraviolet rays from the sun. The officials and scientists were meeting in Tokyo, ahead of an international conference on the problem later this month in either Vienna, or Geneva, Long said. Robert Watson, a program manager for atmospheric problems at the U.S. National Aeronautics and Space Administration said a protocol should demand an initial freeze on the use of CFCs by industry. This should be followed by a gradual reduction in CFC volume until no CFC gases are released into the air, he said. The U.S. Has already banned use of use CFCs in aerosols and Japan has asked for voluntary restraint, but both still use CFCs in industrial processes. .I 1482 .C money-fx 1; interest 1; stg 1 .T U.K. MONEY RATES HARDEN ON LAWSON CURRENCY TARGETS. .W LONDON, April 2 - Money market rates rates showed a harder edge after news U.K. Chancellor of the Exchequer Nigel Lawson has set a target for the pound against the mark and dollar, to be maintained by a mixture of interest rates and intervention in the foreign exchange markets. Dealers said the market was surprised by the Chancellor's disclosure of sterling target rates, around 2.90 marks and 1.60 dlrs, and nervous over the implications for domestic interest rates, further reducing the propects for a near term cut in U.K. Bank base rates. The key three months interbank sterling rate gained 1/16 point at 10 9-7/8 pct. The pound opened three basis points lower at 71.3 in trade weighted terms, at around 1.59 dlrs and 2.91 marks. .I 1483 .C ipi 1 .T GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY. .W BONN, April 2 - West German industrial production, seasonally adjusted, rose a provisional 3.2 pct in February after a downwards revised decline of 3.4 pct in January, the Economics Ministry said. The ministry had originally estimated that industrial production fell 3.0 pct in January. The February figure is likely to be revised upwards by just under one percentage point next month when the March figure is released, a ministry statement said. The industrial production index, base 1980, stood at a provisional 104.1 in February against 100.9 in January and 104.5 in December. The ministry had previously put the January and December indices at 101.6 and 104.7 respectively. In February 1986 the output index had stood at 103.7, producing a year-on-year rise for February 1987 of 0.4 pct. The February rise in production was aided by a sharp 19 pct increase in construction output compared with January, when production in many industrial sectors was depressed by unusually severe winter weather. Manufacturing industry registered a 3-1/2 pct rise in production in February compared with January. But energy sector output fell nine pct and mining production declined seven pct. The ministry, which considers two-monthly comparisons to be a better guide to trends, said output in January and February together fell around two pct against November and December. The ministry said construction output fell 13-1/2 pct in January/February against November/December due to the cold January weather. Output in the energy sector rose four pct and mining output 10 pct. Manufacturing industry's production fell 1-1/2 pct in January/February compared with November/December. Within this sector, the output of both basic products and of food, tobacco and alcohol fell 1-1/2 pct. Production of capital goods fell 2-1/2 pct while output of consumer goods was unchanged. Compared with the same months of 1986, industrial production in January and February 1987 fell 1-1/2 pct, the ministry said. Manufacturing industry output fell one pct, with output of basic products down three pct, capital goods down one pct and food, tobacco and alcohol production 1-1/2 pct lower. Makers of consumer goods posted a 1-1/2 pct year-on-year rise in the two-month period. In other industrial sectors, mining production fell four pct and construction output 4-1/2 pct. The energy sector saw a slight 1/2 pct rise, the ministry added. .I 1484 .C earn 1 .T ******Reckitt and Colman plc pretax profits 1986 yr 145.11 mln stg vs 123.39 mln. .W Blah blah blah. .I 1485 .C acq 1 .T C AND W OFFERED ROLE IN NEW JAPAN TELECOM COMPANY. .W TOKYO, April 2 - A Japanese businessman announced plans for a new telecommunications firm in which Britain's Cable and Wireless Plc would be a core company. However, the plan, unveiled by senior Federation of Economic Organizations official Fumio Watanabe, does not specify what stake Cable and Wireless would have. "The share holdings of the core companies should be equal," Watanabe said in a statement. "The actual percentage of shareholdings should be agreed by the core companies." He said the eight core companies will provide directors for the firm. "The new company shall immediately set to work on the feasibility study of constructing a new cable for itself," Watanabe said. Watanabe has acted as mediator between two rival groups, one of which included C and W, seeking to compete against , which now monopolizes Japan's overseas telephone business. The Post and Telecommunications Ministry has said it wants only one competitor to KDD and has backed Watanabe's efforts. A British source, who declined to be identified further, said the proposals could open the door to further talks between C and W and the other firms involved. C and W had earlier rejected a reported proposal which would have given it a five pct share in the new telecommunications firm, compared to the less than three pct stake Watanabe originally proposed. C and W has a 20 pct stake in one of the two firms Watanabe has proposed should merge. The British source said the decision not to specify the exact shareholdings of the core companies could leave the door open for further discussion. "It's probably a sensible approach on their part," the British source told reuters. C and W has also been pushing hard for permission to lay a new cable between Japan and the U.S. The proposed merger has sparked an international row, with British government sources threatening retaliatory action against Japan for what they see as discriminatory practices against foreign firms. The sources said last Friday that one option for Britain would be to revoke licenses of Japanese banks and securities companies operating in London. The U.S. Has also attacked the original merger plans, saying that both rival consortia should be licensed. Asked about participation by other U.S. And European firms, Watanabe said, "They will not be core companies but if they wish they could participate." Under the Japanese law, total foreign participation would be limited to one-third. "It might be wise for C and W to join the new firm which has the support of many influential backers and work within this for the realization of their ideas," Watanabe told reporters. The other core firms are Mitsubishi Corp , Mitsui and Co , Sumitomo Corp , Matsushita Electric Industrial Co , Toyota Motor Corp , C Itoh and Co , and . Watanabe said that his latest proposal represented his final effort. If it fails to satisfy the British government, it will be up to the Japanese government to explain its position, he said. .I 1486 .C money-fx 1; interest 1 .T BANK OF FRANCE TO BUY FIRST CATEGORY PAPER TODAY. .W PARIS, April 2 - The Bank of France is to inject liquidity against first category paper at a tender this afternoon, a Bank spokesman said. Money market sources were divided as to whether they thought the Bank of France would use the occasion to cut its intervention rate, which has stood at 7 3/4 pct since it was cut from eight pct on March 9. Some thought a rate cut unlikely given foreign exchange turbulence and the U.S. Prime rate rise to 7 3/4 pct, while others still counted on a 1/4 point cut by the Bank of France. .I 1487 .C sugar 1 .T ******FIRS 87/88 EC BEET SUGAR ESTIMATE UNCHANGED 12.63 MLN TONNES WHITE EQUIVALENT. .W Blah blah blah. .I 1489 .C money-fx 1 .T U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG. .W LONDON, April 2 - The Bank of England said it forecast a shortage of around 800 mln stg in the money market today. Among the main factors affecting liquidity, bills for repurchase by the market will drain some 664 mln stg while bills maturing in official hands and the take-up of treasury bills will take out around 508 mln stg and a rise in note circulation some 45 mln stg. Partly offsetting these outflows, exchequer transactions and bankers' balances above target will add some 380 mln stg and 35 mln stg to the system respectively. .I 1491 .C sugar 1 .T SUGAR OFFERED TO DUTCH INTERVENTION REFUSED. .W ROTTERDAM, April 2 - The 2,500 tonnes of sugar offered to intervention in the Netherlands has been refused by the intervention board because of wrong packaging, a spokeswoman for the Ministry of Agriculture said. She said the sugar could be offered again to intervention. EC producers have threatened to sell over 800,000 tonnes of sugar to intervention stocks as a protest against EC export licensing policies. Last month Dutch traders said the sugar on offer in the Netherlands was Belgian, but the ministry could not confirm this. .I 1492 .C money-fx 1; reserves 1 .T RISING TAIWAN DOLLAR CAUSES FOREIGN RESERVES LOSS. .W TAIPEI, April 2 - Taiwan said its foreign reserves suffered about 3.4 billion U.S. Dlrs in exchange rate losses from July 1986 to February 1987 as a result of the rise of the Taiwan dollar against the U.S. Currency. Yu Chien-ming, head of the government statistics department, told parliament yesterday he expected the losses to increase as the Taiwan dollar continues to strengthen. The Taiwan dollar, which opened at 34.24 to the U.S. Dollar today, has risen about 16 pct against the U.S. Unit since September 1985. Some bankers expect it to rise to 33 by June and to 32 by the end of this year. Taiwan's foreign exchange reserves now total 53 billion dlrs. At end-February they were 52.1 billion dlrs, the world's third largest after West Germany and Japan. Yu said the interest earned from the reserves totalled about 1.68 billion U.S. Dlrs from July 1986 to February 1987. The reserves are managed by the central bank and deposited at about 170 leading banks in the U.S., Japan, Britain, Canada and Singapore. About 75 pct of the reserves are in the form of cash, mostly in U.S. Dollars. The rest are in government treasury bills, certificates of deposit and bonds. .I 1493 .C grain 1; corn 1; sorghum 1 .T EC DENIES MAIZE EXPORTS RESERVED FOR U.S. .W BRUSSELS, April 2 - The agreement between the U.S. And the European Community (EC) on special imports of maize and sorghum provides an equal chance for all non-EC countries to supply the Spanish market, an EC Commission spokeswoman said. She denied that any unpublished clause of the agreement guaranteed the bulk of the maize export business would go to the U.S., As one EC official told Reuters yesterday. Under the agreement, the EC will import two mln tonnes of maize and 300,000 tonnes of sorghum a year into Spain at specially reduced levy rates for the next four years. The Commission has yet to decide whether the maize will come in through direct purchases by the Spanish intervention board or by a tender system. .I 1494 .C money-fx 1; interest 1; stg 1 .T U.K. MONEY RATES FIRM ON LAWSON STERLING TARGETS. .W LONDON, April 2 - Interest rates on the London money market were slightly firmer on news U.K. Chancellor of the Exchequer Nigel Lawson had stated target rates for sterling against the dollar and mark, dealers said. They said this had come as a surprise and expected the targets, 2.90 marks and 1.60 dlrs, to be promptly tested in the foreign exchange markets. Sterling opened 0.3 points lower in trade weighted terms at 71.3. Dealers noted the chancellor said he would achieve his goals on sterling by a combination of intervention in currency markets and interest rates. Operators feel the foreign exchanges are likely to test sterling on the downside and that this seems to make a fall in U.K. Base lending rates even less likely in the near term, dealers said. The feeling remains in the market, however, that fundamental factors have not really changed and that a rise in U.K. Interest rates is not very likely. The market is expected to continue at around these levels, reflecting the current 10 pct base rate level, for some time. The key three months interbank rate was 1/16 point firmer at 10 9-7/8 pct. .I 1496 .C wheat 1; grain 1 .T AWB CALLS FOR TIGHTER WHEAT QUALITY CONTROLS. .W MELBOURNE, April 2 - Australia is risking wheat export sales by not providing enough specific quality grades to meet buyer requirements, the Australian Wheat Board (AWB) said. "Many AWB customers are becoming increasingly quality conscious, demanding strict adherence to contractual quality specifications," the board said in a submission to the Royal Commission into Grain Storage, Handling and Transport. "Many of the specifications are more specific than the current categories used in Australia," it said. The commission is trying to identify ways of saving costs and boosting efficiency of the grain handling system. Australia must rely on quality to retain its wheat market share because its competitors are supplying cheaper but lower-quality grades, the AWB submission said. It stressed the need to segregate wheat categories at every stage from receival to shipping. Better industrial relations at grain terminals, more uniform transport systems across the states and extensive stock control were vital to improved marketing, it said. The submission also said Australia's federal system impeded the AWB's role of coordinating and managing the marketing of wheat. The AWB called for an end to physical and legislative constraints at state borders that prevent the efficient transport of grains to other states for shipment. "It is essential that wheat moves by the most economic mode to the nearest efficient port, irrespective of the state in which the wheat is grown or stored," it said. For example, wheat grown in northern New South Wales (NSW) might move more efficiently to Brisbane, in Queensland, than to Sydney or Newcastle in New South Wales, it said. Similarly, southern NSW wheat might better be shipped to Portland or Geelong, in Victoria. Legislation giving state rail authorities a monopoly over grain shipments was one notable impediment, it said. The AWB said the current approach of state-based bulk handling authorities is not essential, although it said it favoured the authorities maintaining at least their current level of control of storage and transport as long as quality was maintained. An appendix on port loading costs showed it cost between 26,500 and 34,700 U.S. Dlrs to load a 50,000-tonne vessel at various Australian ports compared with 21,200 dlrs at Houston and 16,300 at Port Cartier, Quebec, for a 60,000-tonner. .I 1497 .C earn 1 .T ******Bayer world group 1986 pre-tax profit 3.30 billion marks (3.15 billion) - official. .W Blah blah blah. .I 1498 .C dlr 1; money-fx 1 .T JAPAN MINISTRY ASKS TRUST BANKS TO CUT DLR SALES. .W TOKYO, April 2 - The Finance Ministry has asked trust banks to moderate their dollar selling, trust banking sources said. A Ministry official told Reuters earlier this week the Ministry had recently surveyed foreign exchange transactions by institutional investors, but he declined to say whether this was aimed at moderating the dollar sales. Dealers said institutional investors were reluctant to sell dollars aggressively today partly because of the Ministry monitoring. One senior trust bank source said that while sympathizing with the Ministry position, the trust banks had to conduct their foreign exchange operations according to the dictates of the market. A Bank of Japan official said the central bank approved of the survey as long it was not used too forcefully. But another official denied local press reports that the central bank itself had asked investors to moderate their dollar sales. "We are not legally authorized to do that," he said. A Bank of Japan official also said the central bank will renew its call on financial institutions to moderate excessive loans for the purpose of land and securities investment as such investments threaten to cause inflation. Bank of Japan Governor Satoshi Sumita had previously expressed concern about excessive investment in land and securities resulting partly from eased credit conditions. .I 1499 .C sugar 1 .T EC SUGAR TENDER SAID TO MARK NO CHANGE IN POLICY. .W BRUSSELS, April 2 - The maximum rebate granted at yesterday's European Community (EC) sugar tender marked no change in policy towards producers' complaints that they are losing money on exports outside the EC, EC commission sources said. They said this was despite the fact that the commission accepted over 785,000 tonnes of sugar into intervention yesterday from traders protesting that rebates are being set too low. The maximum rebate at yesterday's tender was 46.864 Ecus per 100 kilos, up from 45.678 Ecus the previous week. London traders said yesterday the rebate was the largest ever granted. The commission sources said today the increase was entirely explained by world market conditions. The amount by which the rebate fell short of what producers claim is needed to obtain an equivalent price to that for sales into intervention remained at 0.87 Ecus per 100 kilos, they said. Operators offered a total of 854,000 tonnes of sugar into intervention last month to protest at rebates which they said were too low. The sources said about 706,470 tonnes of French sugar and 79,000 tonnes of German sugar had been accepted, the remainder being rejected as of too low quality. The sources noted the operators could withdraw their offers in the five week period between the acceptance of the sugar and payment for it. They said they saw no sign of planned withdrawals as yet, adding that they would expect operators to wait another week or two to review commission policy before making up their minds. The sources said the commission felt entitled to offer rebates at slightly below the level theoretically justifiable in the light of its 1987/88 farm price package proposal to reduce guaranteed prices for sugar by two pct from the start of the new season in July. .I 1500 .C coffee 1 .T KENYAN COFFEE NEEDS RAIN, TRADERS SAY. .W NAIROBI, April 2 - Kenya's late coffee crop is flowering well, but the main coffee areas were generally dry and hot in the week ended Wednesday, trade sources said. "Machakos, Embu, Meru and Kirinyaga in eastern Kenya, and Nyeri and Thika in central, have been dry in the past week. The farmers expect rain this week. If it does not fall output of the late (October-November-December) crop will decline sharply," one source said. He said that since most growers did not irrigate their crop they could do nothing but wait for rain, the main factor which determines Kenyan coffee production. Two months ago the International Coffee Organization issued a forecast of Kenyan exportable coffee production in the 1986/87 (Oct-Sept) season at 1.82 mln bags. .I 1501 .C oilseed 1; veg-oil 1; soybean 1; soy-meal 1; soy-oil 1 .T CARGILL U.K. STRIKE TALKS BREAK OFF WITHOUT RESULT. .W LONDON, April 2 - Two days of talks between management and unions to try to end the 3-1/2 month labour dispute at Cargill U.K. Ltd's oilseed crushing plant at Seaforth ended yesterday without resolving the situation, a company spokesman said. Fresh talks are expected to be held early next week but the actual date has not yet been fixed, he added. Oilseed processing at the mill has been at a standstill since December 19 and the company has declared force majeure for deliveries of soymeal and soyoil ahead to May. .I 1502 .C coffee 1 .T PRICES RISE AT BANGALORE COFFEE AUCTION. .W BANGALORE, India, April 2 - Prices rose at the fortnightly export auction here on March 25 for sales of 1,907.1 tonnes of coffee from the 1986/87 and 1985/86 crops out of a total offering of 1,940.7 tonnes, the Coffee Board said. Withdrawals amounted to 33.6 tonnes. The type and grade, quantity sold, average prices in rupees per 50 kilos, exclusive of sales tax, with previous prices at the March 11 auction in brackets - 1986/87 crop Plantation "A" 592.2 1,284.50 (1,223.50) Plantation "B" 74.1 1,095.50 (1,122.00) Plantation "C" 208.2 1,019.00 (1,017.50) Arabica Cherry "AB" 33.3 976.50 (NA) Arabica Cherry "PB" 22.5 949.00 (NA) Arabica Cherry "C" 58.2 889.50 (NA) Robusta Cherry "AB" 90.9 1,256.00 (NA) Robusta Cherry "PB" 43.8 1,039.50 (NA) Robusta "PMT AB" 49.2 1,255.50 (NA) Robusta "PMT PB" 13.5 1,200.00 (NA) REP Bulk "A" 93.9 1,057.50 (908.50) REP Bulk "B" 256.5 1,079.00 (930.00) Robusta Cherry Bulk 40.2 1,082.50 (NA) Robusta Cherry "C" 9.0 997.00 (NA) Robusta Cherry "BBB" 9.6 700.00 (NA) 1985/86 crop Arabica Cherry "AB" 123.3 961.00 (951.50) Arabica Cherry "BBB" 160.8 635.50 (613.50) Robusta Cherry "BBB" 4.2 735.00 (704.50) Monsooned coffee Monsooned Robusta "AA" 23.7 1,265.50 (NA) .I 1504 .C wheat 1; grain 1; barley 1 .T U.K. GRAIN EXPORTS CONTINUE TO RISE SHARPLY. .W LONDON, April 2 - The U.K. Exported 517,600 tonnes of wheat and 315,800 tonnes of barley in the first 25 days of March, the Home Grown Cereals Authority (HGCA) said, quoting provisional Customs and Excise figures. This brought combined wheat and barley exports since the season started on July 1 to 7.60 mln tonnes, substantially up on the 4.02 mln exported in the same 1985/86 period. This season's total comprises 3.94 mln tonnes of wheat and 3.66 mln barley, compared with 1.63 mln and 2.39 mln, respectively, a year ago. .I 1505 .C wpi 1; money-supply 1 .T INDIA'S CREDIT POLICY AIMS TO CONTROL LIQUIDITY. .W NEW DELHI, April 2 - India's credit policy package for fiscal 1987/88 (April-March) will help ease inflationary pressures and control the growth of overall liqudity, the Reserve Bank of India (RBI) said in a statement. The package, announced earlier this week, will raise commercial bank statutory liquidity ratios to 37.5 pct from 37 pct, effective April 25, and will increase cash reserve ratios on foreign currency (non-resident) accounts to 9.5 pct from three pct, effective May 23, it said. Excess liquidity pushed wholesale and consumer retail prices higher in 1986/87 on previous year levels, RBI governor R. N. Malhotra said in a statement. Malhotra said India's M-3 money supply grew 209.24 billion rupees in the fiscal year to March 13, compared to a growth of 155.38 billion in the same period the year before. Commercial bank aggregate deposits rose to 164.10 billion in the same period, against 120.66 billion in the corresponding months of fiscal 1986/87, he said. The Finance Ministry in a report issued in February predicted India's fiscal 1986/87 wholesale price-linked inflation rate at about 6.5 pct against 3.8 pct in 1985/86. .I 1508 .C earn 1 .T BAYER CONFIDENT OF POSTING GOOD 1987 RESULTS. .W LEVERKUSEN, West Germany, April 2 - Chemicals group Bayer AG said it expects to post another good result in 1987 after raising pre-tax profit to a new record high in 1986. The company said that this was despite the mark's further strengthening against the dollar and other currencies and despite an increase in competitive pressure. "The further progress of our business will depend largely on the extent to which threats to free trade materialise and on the developments of exchange rates, raw material and energy costs. Bayer said world group pre-tax profit rose to 3.30 billion marks in 1986, exceeding the previous year's record of 3.15 billion. Parent company pre-tax profit increased to 1.72 billion from 1.62 billion. The company gave no net profit figures or any indication of the likely 1986 dividend. Bayer paid a 10-mark dividend on 1985 results, up one mark from a year earlier. Bayer said that world group operating profit declined slightly in 1986 against 1985 but non-operating results showed a further improvement. Bayer said that the decline in world group turnover to 40.75 billion marks from 45.93 billion in 1985 reflected mainly the sharp fall in the dollar against the mark. Lower prices on the raw material side had also brought pressure on selling prices, it added. In volume terms, however, 1986 sales rose slightly against 1985, the company said without giving details. "The western Europe, North America and Far East regions developed well in local currency, but here too the translation of local currency sales into marks distorted the picture, especially in the case of North America," it said. Bayer said parent company volume sales were also higher in 1986, although turnover fell 4.3 pct to 16.77 billion marks. Capacity use was high at the parent company in 1986, resulting in a decline in marginal unit costs. This, combined with savings in raw material and energy costs, helped offset falling prices and cost increases in other areas. The rise in pre-tax parent company profit was due to lower extraordinary expenses and higher net interest income. Plastics, organic chemicals, polyurethanes and coating raw materials all developed well, it said. Turning to the 1986 fourth quarter, Bayer said that world group turnover fell to 9.67 billion marks in the last three months of 1986 from 10.43 billion in the same 1985 period. Parent company turnover in the fourth quarter fell 7.1 pct to 3.69 billion marks, with domestic turnover 4.1 pct lower and foreign turnover 8.6 pct lower. Exports accounted for 65.3 pct of turnover in the quarter against 66.4 pct in the same quarter of 1985. .I 1509 .C reserves 1 .T ****** UK reserves rise underlying 1.785 billion dlrs in March - official. .W Blah blah blah. .I 1511 .C reserves 1 .T U.K. RESERVES SHOW LARGE UNDERLYING RISE IN MARCH. .W LONDON, April 2 - Britain's gold and currency reserves showed an underlying rise of 1.785 billion dlrs in March after a 287 mln dlr rise in January, the Treasury said. This was considerably above market expectations for a 650 mln dlr rise. The underlying trend, which is a guide to Bank of England operations to support the pound on foreign exchanges, is net of borrowings and repayments. The Treasury declined comment on the figures. Last month it said the Bank of England took the opportunity of strong demand to rebuild reserves after losses last autumn. Actual reserves rose by 1.89 billion dlrs, after rising 305 mln in February, to 22.26 billion. Total reserves were revalued to 27.04 billion dlrs, but would have totalled 24.15 billion under the previous valuation, the Treasury said. Gold reserves were revalued by 895 mln dlrs, while SDRs, ECU and convertible currency holdings were revalued by 1.995 billion. Accruals of borrowings under the exchange cover scheme were 361 mln dlrs last month, after 36 mln in February. Repayments were 240 mln dlrs after the previous 16 mln. Capital repayments totalled 14 mln dlrs, after February's two mln dlrs repayment. .I 1512 .C grain 1; corn 1 .T ZAMBIA EXPECTS SHARPLY REDUCED MAIZE CROP. .W LUSAKA, April 2 - Zambia's marketed maize production will probably fall to less than 630,000 tonnes in 1986/87 (May-Apr), from 918,000 last year, because of poor rainfall in major producing areas, Agriculture Minister Kingsley Chinkuli said. He told Parliament that in the southern provinces the harvest would be over 50 pct down on the level in the previous marketing year. "The nation would be lucky to produce over seven mln bags (630,000 tonnes) of maize this year," he stated. Chinkuli added that Zambia was setting up an irrigation fund with Canadian aid to lessen the effects of poor rainfall. .I 1513 .C dlr 1; money-fx 1 .T JAPAN ASKS BANKS TO MODERATE DOLLAR SALES - JIJI. .W TOKYO, April 2 - The Finance Ministry has asked commercial banks to moderate their dollar sales, JiJi News Agency reported, quoting financial sources. Finance Ministry officials were unavailable for comment. The report also could not be confirmed by several bank dealers. Earlier, Japanese trust banking sources said the Ministry had asked them to moderate their dollar sales. A Ministry official said earlier this week the ministry had recently surveyed currency transactions by investors, but declined to say whether this aimed at reducing their dollar sales. .I 1515 .C oilseed 1; pet-chem 1 .T ZIMBABWE BANS POLYPROPYLENE BAGS FOR OILSEEDS. .W HARARE, April 2 - Zimbabwe's Grain Marketing Board has banned the packing of oilseeds in locally-made polypropylene bags and will supply jute bags instead, board officials said. It said the quality of oilseeds such as soybeans, groundnuts and sunflower seed packed in polypropylene bags deteriorated after two weeks. Zimbabwe began producing 10 mln polypropylene grain bags this year to replace jute bags imported mainly from Bangladesh. .I 1517 .C acq 1 .T GUINNESS TO SELL RETAIL INTERESTS. .W LONDON, April 2 - Guinness Plc said that as part of a new strategy for the company it will be selling its retail interests to concentrate resources on developing its international beverage businesses. Among the firms to be sold are Martin's and Gordon Drummond pharmacies, the 7-Eleven convenience stores, speciality U.S. Food importer Richter Brothers and the health products company Nature's Best/DSL. Guinness said in a statement that the company's strength was in its well known beer and spirits brands. Several had good brand development potential, including Gleneagles, Champneys, Cranks, Hediard and and Guinness publications. Guinness shares were trading at 323p after the announcement after closing yesterday at 317p. .I 1518 .C gold 1 .T INDUSTRIAL ACTION ENDS AT SOUTH AFRICAN MINE. .W JOHANNESBURG, April 2 - About 8,000 black miners returned to work after a week-long industrial action at South Africa's largest gold mine, mine owner Anglo American Corp of South Africa Ltd said. A spokesman for the mining house said the action started on Wednesday last week when thousands of miners staged a go-slow at One underground shaft of the Free State Geduld division of Free State Consolidated Gold Mines Ltd . The action later escalated into an underground sit-in at the mine over the weekend, prompting management to close the affected shaft because of what the company described as "the creation of unsafe working conditions." Anglo American spokesman John Kingsley-Jones said the company held talks with the National Union of Mineworkers (NUM), South Africa's biggest trade union which claims a membership of 360,000 black workers, but failed to establish the cause of worker dissatisfaction. He acknowledged that the mine suffered a loss of production, but declined to give estimates. Free State Consolidated last year produced 104 tonnes of gold from 28 underground shafts. The NUM was not immediately available for comment on the action. But a spokesman for the union earlier told the South African Press Association that miners had been locked out of the mine at the weekend after staging a strike in protest against being ordered to carry bags containing explosives as well as food for white miners. .I 1519 .C acq 1 .T COMPROMISE CITED ON SAN MIGUEL SHARES. .W MANILA, April 2 - , SMC, and , UCPB, have reached a compromise on a disputed block of 38.1 mln shares of SMC, the head of a government panel that controls the sequestered shares said. Ramon Diaz, Chairman of the Presidential Commission on Good Government (PCGG) told Reuters SMC had offered a price of 126 pesos per share for the block, held in trust by the UCPB. "It looks good," Diaz said. But he added several issues, including the identity of the ultimate buyers of the shares, had to be resolved before the PCGG gave its approval to the sale. The PCGG's sequestration last year of 33 mln shares aborted SMC's bid to buy them back from 14 trading companies in the UCPB group. The commission said it suspected the shares were actually controlled by Eduardo Cojuangco, an associate of former President Ferdinand Marcos. Cojuango, who headed the boards of both SMC and UCPB when he fled last year after Marcos was toppled, personally owned 24 mln shares in SMC. His holdings are also under sequestration. "The shares that SMC now proposes to buy from the UCPB are owned by 1.4 mln coconut farmers," Diaz said. "Naturally we do not want them to go back into the hands of Marcos cronies." PCGG sources said a compromise would end a row over a down payment of 500 mln pesos made by SMC's Hong Kong subsidiary Neptunia Corp Ltd in a bid to buy back the shares last year. The UCPB had said the 500 mln peso payment would be forfeited because SMC Chairman Andres Soriano III had failed to fulfil his commitment to buy back the shares at an originally negotiated price of 3.3 billion pesos. PCGG sources said SMC, the Philippines' largest food and beverage manufacturer, has agreed to sell 14 mln "B" class shares from the 38.1 mln shares to Australian brewer Alan Bond at a price of 150 pesos per share. The PCGG sources said of the proposed 4.79 billion peso transaction, 1.6 billion pesos would be offset against the 500 mln peso down payment, the 500 mln pesos worth of preferred shares in UCPB held by SMC, 210 mln pesos in uncollected dividends on the UCPB shares and 400 mln pesos advanced to UCPB-controlled trading companies. The UCPB rejected an original offer of 100 pesos per share made by SMC for 33 mln shares, which grew to 38 mln after a 15 pct stock dividend declared in June last year. A spokesman for SMC said the company's 15-member board met today to discuss the proposed compromise. The spokesman declined comment on the outcome of the board meeting, saying the dispute was under arbitration. President Corazon Aquino last month asked SMC and UCPB to set up a three-man arbitration panel to resolve the ownership issue. The panel is due to submit its report by April 15. Eduardo de Los Angeles, a government nominee in the SMC board, filed a formal complaint before the Securities and Exchange Commission last week, accusing Soriano and eight other directors of violating "fiduciary duty." De Los Angeles was said to have opposed a decision by SMC's board last December to assume the 500 mln peso Neptunia loan. .I 1523 .C money-fx 1; interest 1; stg 1 .T LAWSON REMARKS DASH HOPES OF EARLY U.K. RATE CUT. .W LONDON, April 2 - Chancellor of the Exchequer Nigel Lawson's remarks yesterday suggesting there are precise exchange rate targets for the pound undermined sterling, dashing hopes for an early cut in U.K. Base rates, analysts said. But the market's reaction, testing exchange rate levels indicated by Lawson, was probably overdone and the longer term outlook for sterling remained bullish, they agreed. In an apparent break with the previous policy of secrecy, Lawson told a National Economic Development Council meeting he was comfortable with sterling exchange rates around current levels, specifying rates of around 1.90 marks and 1.60 dlrs. Lawson added the U.K. Government intended to keep sterling at about present levels, using currency intervention and interest rates to achieve this. The February 22 Paris agreement of the Group of Five and Canada to stabilise exchange rates is widely believed to include target ranges, but all participants to the meeting had so far refused to specify these. Markets were quick to react to the statement, chopping about one U.S. Cent and over one pfennig off the pound to match the levels mentioned by Lawson. But most analysts polled said they did not believe Lawson's statement signalled a change in U.K. Policy. Keith Skeoch, chief economist at stockbrokers James Capel and Co, said, "the remarks have been blown out of proportion. Lawson is paying now for a little bit of a slip of the tongue." Barclays de Zoete Wedd economist Mark Brett said, "there is nothing great and fantastic in the Chancellor's statement." He said he did not believe the rates indicated by the Chancellor were precise targets, but merely represented central rates around which sterling would be allowed to fluctuate, perhaps by as much as 10 pct. "It would be insane to pinpoint an exchange rate ahead of an election ... I don't believe Lawson is mad enough to tie himself to a fixed rate," Brett said. Currency markets were keen for official statements to clarify the scope of the Paris accord and reactivate currency trading. This mood easily led to over-reaction, analysts said. "Making similar statements when the market is high strung and ready to bounce is perhaps a mistake," one senior dealer with a U.S. Bank said. Capel's Skeoch said, "it gives the foreign exchange markets something to shoot at." "It is obvious that the government, as a member of the Group of Six, has agreed exchange rate bands. But they are not cut in stone, they can change with time," Skeoch said. Brett said, "we think the 2.90 marks level is a central rate. Give or take 10 pfennigs and all is fine." Not all analysts played down the significance of the remarks, however. Chris Dunn, economist at Royal Bank of Canada, said the remarks may signal a decisive move to insulate sterling from the fortunes of the dollar. Although about two-thirds of Britain's trade is conducted with European countries, sterling has traditionally shadowed the dollar rather than the mark, analysts noted. "Britain must decide whether it wants to follow the U.S. Or throw in its lot with Europe," Dunn said. "It suggests that while the U.K. Is not actually applying to join the European Monetary System, it is seeking protection by shadowing it ... The Bundesbank has made it clear that it wants the U.K. To clarify its position relative to the mark," he said. Analysts said sterling's dip on currency markets following Lawson's remarks made an early half-point cut in U.K. Base rates from current 10 pct levels unlikely in the short term. "Over the next three weeks, a cut is out, unless we get some extremely good economic indicators," Capel's Skeoch said. Base rates have been cut twice by one-half point in March, the last after the March 17 budget presentation, and analysts had been expecting another half point cut shortly afterwards. .I 1524 .C earn 1 .T ******NV HOOGOVENS 1986 NET PROFIT 154.6 MLN GUILDERS VS 278.8 MLN -- OFFICIAL. .W Blah blah blah. .I 1525 .C acq 1 .T RANK MAKES INCREASED AVANA OFFER FINAL. .W LONDON, April 2 - Ranks Hovis McDougall Plc said it was making an increased and final offer for the Avana Group Plc . The company already holds about 22.9 pct or 7.1 mln Avana ordinary shares. It said in a statement the terms of the offer will be 13 new Rank Hovis shares for every five Avana ordinary shares, valuing each Avana share at 829p. Avana shareholders will be entitled to receive and retain the net interim dividend of 5.25p per Avana share for the year ending 28 March 1987. Accepting Avana shareholders will also be entitled to receive Ranks Hovis's forecast net interim dividend of 2.65p for the financial year ending 5 September 1987. Ranks Hovis said that full acceptance of the increased offer would result in the issue of a maximum of 72.3 mln new Ranks Hovis shares or about 20 pct of the enlarged issued ordinary share capital of the company. The latest offer will lapse on 17 April. Ordinary shareholders in Avana who accept the increased offer will have the opportunity to elect for cash for all or part of their holdings on the basis of 800p cash for each Avana share. Ranks Hovis said the cash required for the cash alternative would be met by one of several methods. For the first 10 mln Avana shares received opting for the cash alternative, Ranks Hovis would make a cash payment from its own resources. For cash alternatives of more than 10 mln Avana shares, Morgan Grenfell, as agent for participants, will make a separate offer to purchase at 300p per share, net of expenses, up to 46.3 mln Ranks Hovis new shares to which such shareholders will be entitled under the increased offer. This is equivalent to 780p per Avana ordinary. In addition, Ranks Hovis will make a further cash payment of 20p per Avana ordinary. Avana shares traded at 800p after the announcement, 32p up from last night's close of 768p. .I 1529 .C money-fx 1; interest 1 .T U.K. MONEY MARKET GIVEN 345 MLN STG ASSISTANCE. .W LONDON, April 2 - The Bank of England said it had provided the money market with 345 mln stg help in the morning session. This compares with its forecast of a shortage of around 800 mln stg in the system today. The central bank made outright purchases of bank bills comprising 58 mln stg in band one at 9-7/8 pct, 227 mln stg in band two at 9-13/16 pct, 56 mln stg in band three at 9-3/4 pct and four mln stg in band four at 9-11/16 pct. Dealers noted that this was the first time bills in band four, which have a maturity of between two and three months, have been dealt in the market since mid-February. .I 1530 .C acq 1 .T CABLE UNIMPRESSED BY NEW JAPANESE TELECOMS OFFER. .W LONDON, April 2 - Cable and Wireless Plc said new proposals unveiled by Japan for it to become a core member of a merged telecommunications firm to compete for telecommunications contracts did not remove the group's objections. The suggestions by Federation of Economic Organisations official Fumio Watanabe was a formal announcement of proposals made earlier this week and reported in the Japanese press. Cable has a 20 pct stake in one of the two groups trying to compete against Japan's which monopolises Japan's overseas telephone business. But a Cable spokesman said it still believed a merger of the two consortia would be impracticable. "They are like oil and water," he said. The Japanese authorities want only one competitor and have proposed that the two consortia band together. The issue has been taken up by the British government as a test case on the openness of Japanese markets. Watanabe's latest proposals said that the eight core companies of the new group should have equal share holdings but added that they could work out the precise percentages amongst themselves. The reports earlier this week said that Cable would be offered a five pct stake, up from an originally proposed three pct. Despite the apparent differences in stakes offered, the Cable spokesman said the two offers appeared to be essentially the same. Cable shares at 1100 GMT were quoted nine pence firmer at 374p. .I 1531 .C interest 1 .T ****** Bundesbank leaves credit policies unchanged. .W Blah blah blah. .I 1532 .C money-fx 1; interest 1 .T BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED. .W FRANKFURT, March 2 - The Bundesbank left credit policies unchanged after today's regular meeting of its council, a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct, and the Lombard emergency financing rate at 5.0 pct. .I 1533 .C trade 1 .T JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED. .W TOKYO, April 2 - Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japan's favour, a senior official said. "So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments," the Foreign Ministry official told reporters. Last year, Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods, raising the spectre of a trade war between the two countries. "We take the current situation very seriously," said the official, who declined to be identified. "The basic stance of the Japanese government is to tackle the issues with all available resources." The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japan's international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy. .I 1534 .C wheat 1; grain 1 .T FRANCE SOLD WHEAT FLOUR TO CHINA - ONIC. .W PARIS, April 2 - France has sold between 50,000 to 100,000 tonnes of wheat flour to China, the Director General of France's Cereal Intervention Board (ONIC) Bernard Vieux said. He gave no further details of the sale, but added French millers were worried about the unfair competition facing French flour due the lack of end-of-season storage premiums for wheat. ONIC raised its estimate of 1986/87 flour exports to 1.70 mln tonnes compared 1.65 mln forecast in March and the 1.87 mln exported in 1985/86. .I 1536 .C acq 1 .T DECISION EXPECTED ON U.K ROYAL ORDNANCE SALE. .W LONDON, April 2 - U.K. Defence secretary George Younger is expected to announce the government's decision on the sale of state-owned arms manufacturer today, parliamentary sources said. The government originally intended to float the munitions and explosives concern on the stock market, but last July said a private sale was a more appropriate way to dispose of the firm. The bidders for the company were British Aerospace Plc and engineering group GKN Plc . Royal Ordnance sold its Leeds tank factory last summer to Vickers Plc . Defence electronics manufacturer Ferranti Plc and shipping and property group Trafalgar House Plc both pulled out of the bidding shortly before last month's deadline. Royal Ordnance made pre-tax profits of 26 mln stg on sales of 487 mln stg in calendar 1985, its first full year of commercial operation. The company has assets of around 240 mln stg and employs 17,000 at 15 sites in Britain. Other state-held companies earmarked for privatisation this year include engine maker and the . .I 1537 .C gnp 1 .T JAPANESE GROUPS URGE DRASTIC ECONOMIC PACKAGE. .W TOKYO, April 2 - Japan's leading economic organisations urged the Government to prepare drastic pump-priming measures even at the cost of shelving Prime Minister Yasuhiro Nakasone's planned tax reforms, officials involved said. Officials of the Federation of Economic Organisations (Keidanren) said in a meeting with government officials the Government should issue construction bonds as an emergency measure to prop up the economy. Keidanren suggested that proceeds from sales of stocks in the newly-privatised Nippon Telegraph and Telephone Corp should also be used to stimulate the economy. Keidanren Chairman Eishiro Saito said the dollar's fall below 150 yen would create huge unemployment and bankruptcies that could shake the foundation of the Japanese economy. The Keidanren meeting coincided with a written request for drastic reflationary measures sent to the Government by the Japan Chamber of Commerce and Industry. Both organisations called for stepped-up Bank of Japan intervention to stabilise exchange rates. Chamber head Noboru Gotoh told a press conference the awaited economic package should be powerful enough to push up Japan's Gross National Product (GNP) by about two pct. Gotoh said the Government could cope with the present critical economic condition even if it put off its plan to stop the issue of deficit-covering bonds by fiscal 1990. The plan to reduce the fiscal budget is a pillar of Nakasone's fiscal reconstruction program. .I 1538 .C sugar 1 .T SYRIA SEEKING WHITE SUGAR ON APRIL 8 - TRADE. .W LONDON, April 2 - Syria will hold a buying tender on April 8 for 36,000 tonnes of white sugar for shipment in June, July and August at a rate of 12,000 tonnes a month, traders said. .I 1539 .C earn 1 .T HOOGOVENS EXPECTS CLEAR LOSS IN 1987. .W IJMUIDEN, The Netherlands, April 2 - said it expected a "clear loss" for 1987. The company reported its 1986 profits were 44 pct lower at 154.6 mln guilders than in the year before. Turnover was 18 pct lower than in 1985. The main reason fo the fall in turnover was the lower rate of the dollar, the company said. The lower costs for raw materials and energy, resulting from the lower dollar, could not compensate the fall in revenues. Costs 5.61 billion guilders vs 6.66 billion Depreciation 457 mln vs 493 mln Operating profit 375 mln vs 598 mln Financial charges 155.1 mln vs 169.4 mln Extraordinary loss 12 rpt 12 mln vs 138 mln Crude steel production five mln tonnes vs 5.3 mln Aluminium production 96,000 tonnes vs same. .I 1540 .C cpi 1 .T GERMAN MARCH COST OF LIVING DATA CONFIRMED. .W WIESBADEN, April 2 - The cost of living was unchanged in March compared with February but stood 0.2 pct lower than in the same month in 1986, the Federal Statistics Office said. This confirms provisional figures released at the end of last month. In February the cost of living in West Germany rose 0.1 pct from January to stand 0.5 pct lower than in February 1986. .I 1541 .C coffee 1 .T SEASONAL STABILISATION SEEN FOR COFFEE PRICES. .W HAMBURG, April 2 - The onset of cooler weather in Brazil during the southern hemisphere winter is expected to have a stabilising effect on a weak coffee market, West German trade sources said. "The annual fear of frost in Brazil will probably grip the market sometime this month until June or early July," one trader said. The trade believes the International Coffee Organization (ICO) is unlikely to tackle the re-introduction of quotas before its September meeting and until then the market will not see any unexpected sharp moves in either direction. .I 1542 .C ipi 1 .T GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY. .W BONN, April 2 - West German industrial production, seasonally adjusted, rose a provisional 3.2 pct in February after a downwards revised decline of 3.4 pct in January, the Economics Ministry said. The ministry had originally estimated that industrial production fell 3.0 pct in January. The February figure is likely to be revised upwards by just under one percentage point next month when the March figure is released, a ministry statement said. The industrial production index, base 1980, stood at a provisional 104.1 in February against 100.9 in January and 104.5 in December. The ministry had previously put the January and December indices at 101.6 and 104.7 respectively. In February 1986 the output index had stood at 103.7, producing a year-on-year rise for February 1987 of 0.4 pct. The February rise in production was aided by a sharp 19 pct increase in construction output compared with January, when production in many industrial sectors was depressed by unusually severe winter weather. Manufacturing industry registered a 3-1/2 pct rise in production in February compared with January. But energy sector output fell nine pct and mining production declined seven pct. The ministry, which considers two-monthly comparisons to be a better guide to trends, said output in January and February together fell around two pct against November and December. The ministry said construction output fell 13-1/2 pct in January/February against November/December due to the cold January weather. Output in the energy sector rose four pct and mining output 10 pct. Manufacturing industry's production fell 1-1/2 pct in January/February compared with November/December. Within this sector, the output of both basic products and of food, tobacco and alcohol fell 1-1/2 pct. Production of capital goods fell 2-1/2 pct while output of consumer goods was unchanged. .I 1544 .C acq 1 .T TOSHIBA REGRETS LINK WITH U.K. ACCESS ISSUE. .W TOKYO, April 2 - Toshiba Corp said it regrets its plan to enter the U.K. Business facsimile and telephone market may be caught up in a diplomatic row over the position of Cable and Wireless Plc's in the Japanese market. Britain is considering how to retaliate against Japan's attempt to prevent Cable and Wireless from taking a major position in a Japanese international telecommunications venture. "As a matter of timing it is regrettable that this has been linked with the question of market access in Japan," a Toshiba spokesman told Reuters. , a Toshiba subsidiary, said yesterday it planned to enter the U.K. Market under the Toshiba own brand name and had applied for government approval to do so. Toshiba has supplied equipment to U.K. Manufacturers for sale under their brand names since last year. The Toshiba spokesman said the sale of such equipment was not comparable to Cable and Wireless' efforts to take a stake in the new Japanese telecommunications firm. "They are matters of a different category," he said. .I 1545 .C interest 1 .T WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE. .W WELLINGTON, April 2 - Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct. .I 1546 .C dlr 1; money-fx 1; interest 1; yen 1 .T BANK OF JAPAN INTERVENES JUST AFTER TOKYO OPENING. .W TOKYO, April 2 - The Bank of Japan intervened just after the Tokyo market opened, buying dollars at around 147.65 yen, dealers said. They were unsure of the amount of the central bank's purchasing, but it seemed to prevent the dollar from weakening against the yen amid bearish sentiment for the U.S. Currency, they said. The dollar opened at 147.65 yen against 147.20/30 in New York and 146.90 at the close here yesterday. .I 1547 .C money-fx 1; interest 1 .T BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED. .W FRANKFURT, March 2 - The Bundesbank left credit policies unchanged after today's regular meeting of its council, a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct, and the Lombard emergency financing rate at 5.0 pct. .I 1548 .C trade 1 .T JAPAN WARNS OF ANTI-U.S. SENTIMENT IN TRADE ROW. .W TOKYO, April 2 - Japan is sending a three-man team to Washington to try to halt threatened trade sanctions that officials warn could spark a wave of anti-U.S. Sentiment here. The team will lay the groundwork for high-level emergency talks next week aimed at defusing an increasingly bitter row over trade in computer microchips, officials said. "The sanctions are against the free trade system," Ministry of International Trade and Industry (MITI) director general Noboru Hatakeyama told reporters, adding: "If these measures are taken, the atmosphere in Japan against the United States would become not so good as before." Other officials were more blunt. "The U.S. Action will have a significant impact on the growing anti-U.S. Feeling (here)," another MITI official said. A senior Foreign Ministry official, who declined to be identified, told Reuters the U.S. Threats have undercut those in the government who argue for conciliation. "There is a very strong argument in Japan that since the United States is imposing tariffs unilaterally, why should we bother doing anything," he said. "Anything we do, we will be bashed." The senior official sounded pessimistic about the likelihood of Prime Minister Yasuhiro Nakasone defusing U.S. Anger over Japanese trade practices when he visits Washington on April 29. "I don't think trade friction will be solved all of a sudden (by the visit)," he said. Nakasone is widely expected to present a package of measures to President Reagan to help contain U.S. Frustration over Japan's large trade surplus. But the senior official played down those expectations. .I 1549 .C trade 1 .T JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED. .W TOKYO, April 2 - Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japan's favour, a senior official said. "So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments," the Foreign Ministry official told reporters. Last year, Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods, raising the spectre of a trade war between the two countries. "We take the current situation very seriously," said the official, who declined to be identified. "The basic stance of the Japanese government is to tackle the issues with all available resources." The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japan's international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy. .I 1556 .C reserves 1 .T BANK OF FRANCE FOREIGN ASSETS RISE LATEST WEEK. .W PARIS, April 2 - Weekly figures published by the Bank of France showed its gross foreign assets rose by about two billion francs last week, when it was reported by banks to have intervened on the foreign exchange markets to support the dollar against the yen. The figures showed its gold, foreign currency and other external assets rose to 415.1 billion francs from 413 billion, mainly reflecting a rise to 116.7 billion from 114.7 billion in foreign exchange holdings. .I 1559 .C interest 1 .T BANKAMERICA RAISES PRIME RATE TO 7.75 PCT. .W SAN FRANCISCO, April 2 - BankAmerica Corp, following moves by other major banks, said it has raised its prime rate to 7.75 pct from 7.50 pct, effective today. .I 1560 .C silver 1; lead 1; copper 1; alum 1; zinc 1; nickel 1 .T LME DETAILS MARCH 1987 TURNOVER. .W LONDON, April 2 - The London Metal Exchange, LME, issued turnovers for March 1987, with figures for corresponding period 1986 in brackets. All in tonnes except Silver which in troy ounces. Copper higher grade nil (2,526,425), Standard cathodes nil (6,325), Grade A 2,429,200 (nil), Standard Copper 17,050 (nil), Lead 443,850 (538,750), Zinc High grade 598,550 (304,825), Silver large 10,350,000 (17,400,000), Small nil (2,000), Aluminium 1,693,375 (1,301,850), Nickel 62,004 (65,040). Cumulative figures for January-March were as follows - Copper higher grade nil (7,703,625), Standard cathodes nil (24,700), Grade A 6,455,525 (nil), Standard Copper 62,075 (nil), Lead 1,567,000 (1,979,750), Zinc High grade 1,746,675 (1,356,400), Silver large 41,770,000 (65,620,000), Small nil (8,000), Aluminium 4,984,650 (4,974,950), Nickel 199,944 (179,328). .I 1561 .C acq 1 .T NEWS CORP STARTS HARPER/ROW BID. .W NEW YORK, April 2 - News Corp Ltd of Australia said it has started its previously announced tender offer for all shares of Harper and Row Publishers Inc at 65 dlrs per share. In a newspaper advertisement, the company said the offer is conditioned on received of at least 51 pct of Harper and Row's shares. The offering and withdrawal rights expire April 29 unless extended. A merger at the tender price is to follow the offer, which has been approved by the Harper and Row board. Harper and Row has granted NEw Corp an option to buy up to 800,000 new shares or a 15.4 pct interest at 65 dlrs each. News Corp said if the merger agreement were terminated under certain circumstances, News would be entitled to a 16 mln dlr cash payment. Last month, Theodore Cross offered to acquire Harper and Row for 34 dlrs per share but was soon outbid by Harcourt Brace Jovanovich Inc, which offered 50 dlrs per share. Late in the month, Harper and Row said its board had received expressions of interest from a number of domestic and foreign companies. .I 1563 .C earn 1 .T INTERNATIONAL TECHNOLOGY SEES 4TH QTR LOSS. .W TORRANCE, Calif., April 2 - International Technology corp said it expects to report a loss for the fourth quarter ended March 31 of about 20 cts per share, compared with a year-earlier profit of 11 cts. The company blamed the expected loss on regulatory and permitting issues that limited the full utilization of hazardous waste treatment cites in Califoirnia, continued startup delays for major remediation projects, the writeoff of an investment in a subsidiary and a settlem,ent with the California Attorney General's Office and Department of Health Services. The company said the settlement relates to regulatory violations alleged by the U.S. Environmental Protection Agengy and the California Health Services department at the company's Vine Hill and Panoche treatment facilities in Northern California. It said under the agreement, it will pay the state 2,100,000 dlrs in civil penalties over a two-year period and pay 500,000 dlrs over five years to local medical facilities as part of a community awareness and emergency response program developed by local communities. The expenses will be charged against fourth quarter results, it said. The company said it has agreed as well to make compliance and public safety capital expenditures of about 600,000 dlrs. It said it has now received an operating permit for a new 250,000 cubic yard landfill cell at its Imperial County, Calif., from the Health Services department. The company said the Panoche facility remains closed but is expected to reopen for liquid and sludge receipts in the near future. But it said receipts of solid material, which had accounted for the majority of the revenue at the site, could be restricted until 1988 pending resolution of capacity issues in the Panoche site permit. .I 1564 .C earn 1 .T WESTLB LUXEMBOURG REPORTS LOWER 1986 NET PROFIT. .W DUESSELDORF, April 2 - Westdeutsche Landesbank Girozentrale said its wholly-owned Luxembourg subsidiary WestLB International SA posted a decline in 1986 net profit to 12.6 mln marks from 48.5 mln a year earlier. WestLB International will pay a 12.5 mln mark dividend to WestLB, down from 47.7 mln a year earlier. The dividend was lower than in 1985 because the record profit of the previous year could not be repeated, due to changed market conditions, it said. Increased funds were also allocated for provisions. Business in the first three months of 1987 developed positively, it added. WestLB International set aside 115.3 mln marks for international credit risks in 1986, up from 97.4 mln marks in 1985, bringing the total amount of provisions shown in the balance sheet to 580.3 mln marks. Operating profit fell to 122 mln marks in 1986 from 150 mln in 1985. Balance sheet total fell to 9.7 billion marks from 10.8 billion, reflecting the lower dollar and the fact that credit business redemptions were not fully offset by new lending. The statement said WestLB International's business with private customers showed a pleasing expansion last year. This development was aided by cooperation between the bank and the savings banks in the West German state of North Rhine-Westphalia, where parent bank WestLB is based. Deposits by non-banks rose more than 40 pct to a total of 1.1 billion. WestLB International said it plans to expand its range of services for private clients. .I 1565 .C copper 1 .T 40 MINERS TRAPPED BY FIRE IN GASPE COPPER MINE. .W MURDOCHVILLE, Que., April 2 - Some 40 miners were trapped underground today by a fire in a copper mine in the Gaspe area of eastern Quebec, officials said. There were no reports of any deaths. A mine official said that the fire broke out last night and about 25 of the miners made it to safety. He said telephone contact had been established with the trapped miners but they could not be brought to the surface until the fire was extinguished. The cause of the fire was not known. .I 1566 .C coffee 1 .T OTHER MILDS COFFEE PRODUCERS TO MEET MAY 4. .W LONDON, April 2 - Coffee producers belonging to the "Other Milds" group will meet May 4 in Guatemala to discuss the possibility of restoring export quotas, producer delegates told reporters after the closing session of the International Coffee Organization, ICO, executive board meeting. The "Other Milds" group, comprising Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Papua New Guinea and Peru, might consult with Brazil and Colombia on this meeting, but it was not certain whether these two countries would attend, they said. The ICO board meeting ended without moves to restart negotiations on quotas, which broke down last month, producer delegates said. Producers are expected to hold other consultations in the coming months on how to proceed with quota negotiations, but no date for a full producer meeting has been mentioned, they said. The board completed reports on stock verification and the next regular board session will be in Indonesia June 1-5, delegates said. .I 1568 .C acq 1 .T BUYOUT COMPLETED. .W HONOLULU, April 2 - Aloha Inc said its leveraged buyout by AQ Corp, which acquired 91 pct of Aloha common and 82 pct of Aloha preferred in a tender offer that concluded December 26, has been completed for 28.50 dlrs per common or preferred share. AQ is controlled by Aloha chairman Hung Wo Ching, vice chairman Sheridan C.F. Ing and president A. Maurice Myers. .I 1570 .C money-fx 1; interest 1 .T U.K. MONEY MARKET GIVEN FURTHER 152 MLN STG HELP. .W LONDON, April 2 - The Bank of England said it had given the money market a further 152 mln stg assistance in the afternoon session. This takes the Bank's total help so far today to 497 mln stg and compares with its forecast of a shortage in the system of around 700 mln stg which it earlier revised down from 800 mln. The central bank made outright purchases of bank bills comprising 34 mln stg in band one at 9-7/8 pct, 39 mln stg in band two at 9-13/16 pct, 51 mln stg in band three at 9-3/4 pct and 28 mln stg in band four at 9-11/16 pct. .I 1571 .C interest 1 .T ****** BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL. .W Blah blah blah. .I 1576 .C wheat 1; grain 1; corn 1 .T FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED. .W PARIS, April 2 - French operators have requested licences to export 422,000 tonnes of free market maize, 212,000 tonnes of barley and 20,000 tonnes of feed wheat at today's EC tender, trade sources said. For the maize, rebates requested range between 129.25 and 138.74 European currency units per tonne, for the barley between 138.94 and 145 Ecus and for feed wheat 141.75 Ecus. .I 1577 .C money-fx 1; interest 1 .T BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED. .W PARIS, April 2 - The Bank of France said it left its intervention rate unchanged at 7-3/4 pct when it injected funds to the market against first category paper in todays money market intervention tender. Money market dealers had earlier expressed mixed views on a possible quarter point cut. The rate was last adjusted on March 9, when it was reduced to 7-3/4 pct from the eight pct rate set in January. .I 1578 .C wool 1 .T MAURITIUS LIFTS DUTY ON TEXTILE-RELATED GOODS. .W PORT LOUIS, April 2 - Mauritius has lifted import duties on textiles and other goods connected with the textile industry as part of its economic liberalisation programme, Finance Minister Vishnu Lutchmeenaraido said. Lutchmeenaraido said the move was aimed at boosting the local textiles industry and making this Indian Ocean island a shopping paradise for textile goods. He said all types of textiles, textile machinery and associated goods such as sewing thread, buttons and collar supports would be placed on the duty-free list, effective from April 1. Official sources said the government was also planning to abolish import duties on fertiliser and agricultural equipment, with the liberalisation measures would be extended to other areas of industry later. The textiles industry dominates Mauritius's Export Processing Zone, and the island has become a major exporter of woollen knitwear. .I 1579 .C crude 1 .T NP ENERGY SAYS TRUSTEE APPOINTED. .W LOS ANGELES, April 2 - NP Energy Corp said the U.S. Bankruptcy Court has indicated it will appoint a trustee to oversee the company's Chapter 11 bankruptcy proceedings. It said it hopes the appointment will thwart "hostile" actions being pursued by two unsecured creditors to whose claims the company objects. NP further said the Nielsen 1-20 well in Duchesne County, Utah, has tested 300 barrels of oil per day. NP owns a 61 pct working interest. .I 1580 .C acq 1 .T CPC INTERNATIONAL SELLS SOUTH AFRICAN UNIT. .W ENGLEWOOD CLIFFS, N.J., April 2 - CPC International Inc said it has completed the sale of its South African subsidiary Robertsons Pty Ltd to a consortium of European and South African investors for an undisclosed amount in excess of book value due to the increasing difficulty of operating there. It said the operation accounted for less than two pct of worldwide sales of 4.5 billion dlrs in 1986. The company said small royalties expected to result from use of CPC trademarks by the new owners will be utilized for social programs in south Africa." It said no significant impact on earnings is expected from the sale. .I 1581 .C earn 1 .T 4TH QTR NET. .W TORONTO, April 2 - Shr 23 cts vs 46 cts Net 987,000 vs 1,990,000 Revs 14.6 mln vs 15.0 mln Year Shr 89 cts vs 1.32 dlrs Net 3,846,000 vs 5,690,000 Revs 58.1 mln vs 56.6 mln .I 1582 .C earn 1 .T NORTH EAST INSURANCE CO 4TH QTR LOSS. .W PORTLAND, Maine, April 2 - Shr loss 85 cts vs loss 1.36 dlrs Net loss 1,653,386 vs loss 2,646,876 Year Shr loss 12 cts vs loss 1.30 dlrs Net loss 236,469 vs loss 2,522,293 NOTE: Year net includes realized investment gains of 734,609 dlrs vs 645,438 dlrs. .I 1583 .C jobs 1 .T U.S. FIRST TIME JOBLESS CLAIMS ROSE IN WEEK. .W WASHINGTON, April 2 - New applications for unemployment insurance benefits rose to a seasonally adjusted 355,000 in the week ended March 21 from 341,000 in the prior week, the Labor Department said. The number of people actually receiving benefits under regular state programs totaled 2,480,000 in the week ended March 14, the latest period for which that figure was available. That was up from 2,454,000 the previous week. .I 1584 .C earn 1 .T ******MELLON BANK EXPECTS TO REPORT A FIRST QUARTER LOSS OF 55 MLN TO 65 MLN DLRS. .W Blah blah blah. .I 1585 .C interest 1 .T FIRST CHICAGO RAISES PRIME RATE. .W CHICAGO, April 2 - First Chicago Corp said its First National Bank of Chicago raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective immediately. .I 1587 .C earn 1 .T ******MELLON BANK SAYS IT WILL CUT DIVIDEND TO 35 CTS A SHR FROM 69 CTS. .W Blah blah blah. .I 1588 .C acq 1 .T AMERICAN BARRICK SELLS OHIO ASSETS. .W TORONTO, April 2 - American Barrick Resources Corp said it sold two coal supply agreements and substantially all assets at its two coal mines in Ohio to of Henderson, Kentucky, for an undisclosed price. The company said proceeds from this sale, together with the sale of the remaining coal assets, should allow it to fully recover its investment in the operations. It said the transactions will complete its previously announced plan to sell all non-gold assets. .I 1590 .C interest 1 .T COMERICA RAISES PRIME RATE. .W DETROIT, April 2 - Comerica Inc said it raised its prime interest rate to 7-3/4 pct from 7-1/2 pct, effective April 1. .I 1591 .C earn 1 .T NORTH EAST MAY VIOLATE CAPITAL RULES. .W PORTLAND, Maine, April 2 - North East Insurance Co said due to the magnitude of its losses in 1986 and 1985, it may be found in violation of minimum capital and surplus requirements by officials in Maine and New York and be subject to sanctions and administrative actions in those and other states. The company today reported a 1986 loss of 236,469 dlrs, after realized investment gains of 734,609 dlrs, compared with a 1985 loss of 2,522,293 dlrs, after investment gains of 645,438 dlrs. Its fourth quarter net loss was 1,653,386 dlrs, compared with 2,646,876 dlrs. The company said its fourth quarter and year losses resulted from additions to loss reserves. .I 1592 .C earn 1 .T ELECTROMEDICS INC YEAR NET. .W ENGLEWOOD, Colo., April 2 - Shr profit nil vs loss three cts Net profit 140,022 vs loss 882,869 Revs 13.3 mln vs 8,870,035 Avg shrs 45.0 mln vs 35.0 mln Backlog 1,683,000 vs 978,000 NOTE: Current year net includes tax credit of 51,000 dlrs. .I 1593 .C earn 1 .T ELECTROMEDICS TO TAKE 1ST QTR CHARGE. .W ENGLEWOOD, Colo., April 2 - Electromedics Inc said it expects to take a 150,000 dlr charge against first quarter results due to the conversion of debentures. The company said, however, it expects "positive" operating comparisons for the period. Electromedics lost 6,000 dlrs in last year's first quarter. .I 1596 .C earn 1 .T SHELDAHL INC 2ND QTR FEB 28 NET. .W MINNEAPOLIS, April 2 - Shr 24 cts vs four cts Net 663,000 vs 109,000 Sales 20.5 mln vs 13.9 mln Six mths Shr 48 cts vs nine cts Net 1,311,000 vs 255,000 Sales 43.2 mln vs 30.0 mln Avg shrs 2,719,205 vs 2,804,048 .I 1597 .C earn 1 .T MELLON SEES LARGE FIRST-QUARTER LOSS. .W PITTSBURGH, PA., April 2 - Mellon Bank Corp said it expects to report a loss for the first quarter in the range of 55 mln to 65 mln dlrs or 2.13 to 2.15 dlrs a share. The company also said it intends to reduce its second quarter common stock dividend to 35 cts a share from 69 cts. Mellon said it will make a provision for loan losses in the first quarter of 175 mln dlrs, reflecting about 95 mln dlrs in charge-offs and 80 mln dlrs in additions to the loan-loss reserve. It will also put 310 mln dlrs in Brazilian loans on a cash basis, resulting in interest reversals of 10 mln dlrs. In the first quarter of 1986, Mellon earned 60.4 mln dlrs or 2.13 dlrs a share. Chairman David Barnes said the loan charge-offs and increased provisions address four areas of concern in the bank's wholesale lending portfolio - the energy sector, developing countries, some basic industrial companies and several commercial real estate businesses. Mellon said the loan loss reserve at the end of the first quarter is estimated to be 575 mln dlrs, or about 2.5 pct of the loan book, compared with 493.8 mln dlrs or 2.17 pct of total loans at the end of 1986. Mellon said its primary capital ratio at the end of the first quarter will be in line with the end-1986 figure of 7.23 pct, well in excess of regulatory guidelines. Non-performing loans at quarter-end are estimated at 1.45 billion dlrs, or 6.5 pct of the loan portfolio, compared with 928 mln dlrs or 3.94 pct at the end of 1986. Barnes noted that Mellon has a bigger involvement in energy-based lending than many other banks. Because of the lack of a substantial recovery in energy prices this year, especially in natural gas prices, it was felt prudent to increase reserves and take losses on loans in this sector. "This action relates both to loans to companies directly involved in energy, as well as loans to real estate developers, home builders and financial institutions in the Southwestern United States," Barnes said. As for LDC loans, he said Mellon had removed about 80 mln dlrs in fully current Argentine loans from cash basis but had charged off about 20 mln dlrs in private-sector Mexican debt. He said Mellon, which was ordered in December to quit Brazil because of its refusal to renew some short-term credit lines, expects to participate in efforts to helpt Brazil and other sovereign borrowers to reschedule their debts. Loans to basic industries were not major contributors to the increase in non-performing assets or to first-quarter charge offs, but Mellon said it remains concerned about the absence of a strong recovery in steel and related industries. The increase in reserves, the dividend cut and continued management cost-cutting are aimed at ensuring that Mellon has the financial strength to deal with current uncertainties, Barnes said. "We cannot predict when the uncertainties that presently trouble us will end, but we are confident we are managing them aggressively," he added. .I 1598 .C dlr 1; money-fx 1; dmk 1 .T TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES. .W ANKARA, April 2 - Turkey's Central Bank set a lira/dollar rate for April 3 of 782.50/786.41 to the dollar, down from 780.00/783.90. It set a lira/D-mark rate of 428.30/430.44 to the mark, up from 429.15/431.30. .I 1599 .C money-fx 1 .T U.K. MONEY MARKET GIVEN 40 MLN STG LATE HELP. .W LONDON, April 2 - The Bank of England said it had provided the money market with around 40 mln stg late assistance. This takes the Bank's total help today to some 537 mln stg and compares with its estimate of a 700 mln stg shortage. .I 1600 .C earn 1 .T KLOECKNER SEES FURTHER GROWTH IN ENGINEERING. .W HANOVER, West Germany, April 2 - Kloeckner-Werke AG should have turnover this year around 1985/86's 2.4 billion marks though more growth is likely in engineering in coming years, management board chairman Herbert Gienow said. He told a news conference at the trade fair here that by the mid-1990s turnover should reach between six and seven billion marks, mainly through acquisitions totalling "several hundred million marks." Kloeckner reported in March higher profits in its engineering sector which enabled it to raise profits by nearly a third in the 1985/86 year to 45.2 mln marks from 33.8 mln. .I 1601 .C dmk 1; austdlr 1 .T CITIBANK SELLS MARK/AUSTRALIAN DLR WARRANTS. .W LONDON, April 2 - Citicorp said that on behalf of its Citibank N.A. Subsidiary, it is issuing 100,000 naked currency warrants priced at 67-1/2 marks each to purchase Australian dlrs for marks at a rate of 1.1825 marks per Australian dlr. The current rate is 1.2850 marks per Australian dlr. Each warrant is for a nominal amount of 1,000 marks and the minimum purchase will be for 100 warrants. The warrants expire on January 8, 1988. Payment is due on April 8 and the warrants will be listed on the Luxembourg Stock Exchange. .I 1605 .C acq 1 .T FIRST FEDERAL FORT MYERS TO MAKE PURCHASE. .W FORT MYERS, Fla., April 2 - First Federal Savings and Loan Association of Fort Myers said its board has executed a letter of intent to acquire First Presidential Savings and Loan Association of Sarasota, Fla., for 8,500,000 dlrs in cash. The company said a definitive agreement is expected to be executed by May 15 and the transaction is expected to be completed by year-end. The purchase price is subject to an increase on a dollar for dollar basis to the extent that the net worth of First Presidentail exceeds 4,100,000 dlrs at the time of closing, the company said. .I 1606 .C acq 1 .T ******ELI LILLY AND CO PLANS TO SELL ITS ELIZABETH ARDEN SUBSIDIARY. .W Blah blah blah. .I 1607 .C earn 1 .T SAN DIEGO GAS SEES DECISION HURTING NET. .W SAN DIEGO, April 2 - San Diego Gas and Electric Co said a California Public Utilities Commission decision to reconsider allowing only 20 mln dlrs of the 69 mln dlrs in San Onofre nuclear station costs it disallowed makes it likely that earnings in 1987 will be reduced at least 36 cts per share. The company said if the decision to disallow the other 20 mln dlrs is not changed, earnings would be penalized by another 19 cts. .I 1608 .C acq 1 .T ELI LILLY TO SELL ELIZABETH ARDEN UNIT. .W INDIANAPOLIS, April 2 - Eli Lilly and Co said its board decided to sell Elizabeth Arden Inc, a wholly owned subsidiary that manufactures and markets cosmetics and fine fragrance products. It said the business, which had sales of 67 mln dlrs when it was acquired in 1971, had sales last year of 398 mln dlrs, up 12 pct from 1985. It had operating profits of about 33 mln dlrs in 1986. Lilly said it retained Morgan Stanley and Co to help evaluate offers. Lilly said it expects to use the after-tax proceeds from the sale of its cosmetics business for general corporate purposes, including the repurchase from time to time of its common stock or warrants on the open market. In a statement, Lilly Chairman Richard Wood said "This strategic decision was reached on the basis of our belief that in the future the corporation's resources, including its research activities, should be focused on its other business which have a high technology, life sciences orientation." .I 1609 .C iron-steel 1; crude 1 .T MADRID METRO HALTED AS SPANISH STRIKES SPREAD. .W MADRID, April 2 - An estimated 1.2 mln metro users in Madrid were stranded today as striking railway workers halted the underground transport system, industry sources said. The strikers joined coal miners, steel and oil refinery workers in Spain's latest wave of stoppages over wage demands. Some 10,000 pitmen in the northern province of Leon entered the second day of an indefinite stoppage to demand wage rises and a five-day working week, the sources said. Oil refinery workers picketed the state-owned Empresa Nacional de Petroleo SA (EMP) to prevent fuel lorries leaving the company's largest plant in Puertollano, central Spain. Paramilitary police were guarding steel mills at Reinosa, in northern Spain, from the daily protests against planned job cuts. A local government official said the police force would remain in place until tempers had cooled down. More than 60 people were injured in pitched battles between police and steel foundry workers in Reinosa last month. .I 1610 .C jobs 1 .T BELGIAN UNEMPLOYMENT FALLS IN MARCH. .W BRUSSELS, April 2 - Belgian unemployment, based on the number of jobless drawing unemployment benefit, fell to 11.8 pct of the working population at the end of March from 12.1 pct at end of February, the National Statistics Office said. The rate compares with 12.0 pct at the end of March, 1986. The total number of jobless stood at 495,208, compared with 508,392 in February and 504,652 in March last year. .I 1614 .C acq 1 .T KEY CENTURION COMPLETES ACQUISITIONS. .W CHARLESTON, W.Va., April 2 - Key Centurion Bancshares Inc said it has completed the previously-announced acquisitions of Union Bancorp of West Virginia Inc and Wayne Bancorp Inc. .I 1616 .C acq 1 .T CB AND T COMPLETES ACQUISITION. .W COLUMBUS, Ga., April 2 - CB and T Bancshares Inc said it has completed the acquisition of First Community Bancshares Inc Of Tifton, Ga., which as assets of 62 mln dlrs. .I 1619 .C wheat 1; grain 1 .T COLOMBIA BUYS 25,000 TONNES FRENCH WHEAT - TRADE. .W PARIS, April 2 - Colombia recently bought 25,000 tonnes of French soft wheat at 108 dlrs per tonne, c and f, for end-April shipment, trade sources said. This follows the country's tender for 25,000 tonnes of optional origin wheat for shipment April 20-30, they said. France had not sold wheat to Colombia for several years. .I 1621 .C earn 1 .T ******GENERAL PUBLIC UTILITIES RESUMES DIVIDENDS ON COMMON STOCK, PAYS 15 CTS. .W Blah blah blah. .I 1622 .C acq 1 .T ZIMBABWE GOVERNMENT BUYS INTO ASTRA. .W HARARE, April 2 - The Zimbabwe government has bought 85 pct of the equity in for 25.5 mln dlrs from Netherlands-based , Astra announced. Astra owns five companies with interests in engineering, paint manufacture and the distribution of farm machinery and equipment, motor vehicles and earthmoving equipment. The company is now locally controlled with 80 pct of its equity owned by the government, 14 pct by the Dutch firm. A six pct stake was donated to the Astra Corporation Workers' Trust by the government and the Dutch company. .I 1625 .C earn 1 .T ******UTILICORP RECOMMENDS THREE-FOR-TWO SPLIT, DIVIDEND INCREASE AND ADDITIONAL CLASS OF STOCK. .W Blah blah blah. .I 1626 .C earn 1 .T GPU DECLARES FIRST DIVIDEND SINCE 1979. .W PARSIPANNY, N.J., April 2 - General Public Utilities Corp said its board declared a dividend of 15 cts per share on common stock, its first dividend since it omitted payment in February 1980 as a result of the Three Mile Island nuclear accident in 1979. The company said it was able to declare the dividend due to progress in the cleanup of Three Mile Island Unit Two. A company spokesman said GPU expects to continue declaring dividends on a quarterly basis, with the rate depending on the progress of the cleanup and on other company operations. GPU said the dividend is of "modest size," representing less than a third of the amount paid as a dividend by the average electric utility. "As the operating companies need to return to the capital markets for debt and preferred stock, this should tend to produce lower cost and better terms," the company said. The dividend is payable May 29 to holders of record April 24. .I 1627 .C earn 1 .T BRITTON LEE SEES FIRST QUARTER LOSS. .W LOS GATOS, Calif., April 2 - Britton Lee Inc said it expects to report a loss on lower sales than it had anticipated for the first quarter. The company earned 119,000 dlrs before a 70,000 dlr tax credit on sales of 7,227,000 dlrs in the year-ago period. .I 1630 .C money-fx 1; interest 1 .T NEW DUTCH SPECIAL ADVANCES UNCHANGED AT 5.3 PCT. .W AMSTERDAM, April 2 - The Dutch central bank announced new 12-day special advances at an unchanged rate of 5.3 pct to cover money market tightness for the period April 3 to 15. The amount will be set at tender on April 3 between 0700 and 0730 hours GMT. The new facility replaces the current 4.2 billion guilders of nine-day advances which expire tomorrow. Money market dealers said the rate for the new advances was in line with expectations. They added they expect the Bank to allocate between 4.0 and 4.5 billion guilders. .I 1631 .C jobs 1 .T EC TO BOOST SPENDING ON JOB CREATION THIS YEAR. .W BRUSSELS, April 2 - The European Community (EC) is to boost spending to help the jobless this year. The EC's executive commission said in a statement spending on its so-called social fund would rise to 3.1 billion European Currency Units from 2.5 billion ECUs in 1986. The fund is designed to help boost job creation and improve worker mobility, and supplement national schemes in the EC's 12 member states. Another 60 mln ECUs could be added if EC ministers switch unused project credits to other programs, the Commission said. Italy is the largest net beneficiary in 1987, getting 635 mln ECUs, with Britain in second place with 580 mln. .I 1633 .C acq 1 .T JACOBS TAKES MAJORITY STAKE IN COTE D'OR. .W ZURICH, April 2 - Jacobs Suchard AG said it acquired a "comfortable majority" interest in its takeover bid for Cote d'Or SA, Belgium's leading producer of chocolate. In a statement, Jacobs said it had acquired all the shares tendered by the time its offer expired on March 30. The offer, for 100 pct of Cote d'Or at 8,050 Belgian francs per ordinary share, was agreed with the Belgian firm's board. A Jacobs spokesman declined to specify the size of the majority stake and said Jacobs had not decided what it would do about acquiring the outstanding shares. .I 1634 .C trade 1 .T ******YEUTTER SAYS U.S. SHOULD STRESS TRADE NEGOTIATIONS AS LONG-TERM U.S. TRADE POLICY. .W Blah blah blah. .I 1635 .C earn 1 .T HOLIDAY RECAPITALIZATION APPROVED. .W MEMPHIS, Tenn., April 2 - Holiday Corp said the New Jersey Casino Control Commission has approved its recapitalization plan, providing the final regulatory approval needed. The company said it expects to announce next week the record date for the special 65 dlr per share dividend shareholders will receive under the plan and to pay the dividend during the month of April, with the exact timing depending on the closing of financing arrangements. Holiday operates Harrah's Marina Hotel and Casino in Atlantic City, N.J. .I 1638 .C earn 1 .T COMP-U-CARD INTERNATIONAL INC 4TH QTR NET. .W STAMFORD, Conn., April 2 - January 31 end Oper shr profit 16 cts vs loss six cts Oper net profit 2,879,000 vs loss 958,000 Revs 41.9 mln vs 24.1 mln Avg shrs 18.2 mln vs 15.8 mln Year Oper shr profit 49 cts vs profit 18 cts Oper net profit 8,660,000 vs profit 2,832,000 Revs 141.8 mln vs 87.5 mln Avg shrs 17.8 mln vs 15.8 mln NOTE: Net excludes extraordinary tax charge 156,000 dlrs vs credit 2,257,000 dlrs in quarter and credits 1,041,000 dlrs vs 3,589,000 dlrs in year. .I 1639 .C trade 1 .T YEUTTER STRESSES IMPORTANCE OF TRADE TALKS. .W WASHINGTON, April 2 - U.S. Trade Representative Clayton Yeutter stressed the importance of trade negotiations to open foreign markets rather than trade restrictions in a statement to the Senate Finance Committee. "In the long term we cannot repeatedly bludgeon other nations into opening their markets with threats of U.S. restrictions. Rather, we must be able to negotiate credibly for global liberalization," Yeutter said. Yeutter did not mention the recent U.S. trade sanctions against Japanese semiconductors in his testimony on the pending trade bill. Yeutter said the trade bill should increase U.S. competitiveness, aid U.S. trade negotiating leverage, and avoid provoking foreign retaliation. He urged Congress to reject provisions that would mandate U.S. retaliation against foreign unfair trade practices. Yeutter emphasized the importance of the new multilateral trade negotiating round and called on Congress to quickly approve an extension of U.S. negotiating authority. "We want to open foreign markets and establish and enforce rules of international competition, not foster dependence on protection and subsidies," he said. .I 1640 .C trade 1 .T EC MUST EXPLAIN FARM POLICY TO U.S., FRANCE SAYS. .W PARIS, April 2 - The U.S. and the European Community could enter into a new trade dispute unless urgent action is taken to explain EC farm policy to the U.S. Congress, French official sources said. They said Prime Minister Jacques Chirac planned to urge EC Commission president Jacques Delors to send a team of experts to Washington as soon as possible. Chirac returned to Paris this morning after three days of talks in New York and Washington in which trade and protectionism featured prominently. At the centre of the new trade tension is an EC Commission proposal to tax vegetable oils, the sources said. .I 1645 .C earn 1 .T CENTRONICS CORP YEAR LOSS. .W NASHUA, N.H., April 2 - Oper shr loss 11 cts vs loss 36 cts Oper net loss 2,383,000 vs loss 4,285,000 Total income 2,194,000 vs nil NOTE: Resultes restated for discontinued operations and exclude discontinued operations loss 5,755,000 dlrs vs gain 4,933,000 dlrs. .I 1646 .C earn 1 .T SANDSPORT DATA SERVICES INC 3RD QTR NET. .W PORT WASHINGTON, N.Y., April 2 - Feb 28 end Shr nil vs nil Net 132,804 vs 53,510 Revs 2,001,107 vs 1,467,742 Avg shrs 73.9 mln vs 56.7 mln Nine mths Shr nil vs nil Net 302,316 vs 171,034 Revs 5,230,014 vs 4,112,562 Avg shrs 74.4 mln vs 56.7 mln .I 1647 .C interest 1 .T NORTH CAROLINA FEDERAL RAISES PRIME RATE. .W CHARLOTTE, N.C., April 2 - North Carolina Federal Savings and Loan Association said it has raised its prime rate to 7-3/4 pct from 7-1/2 pct, effective yesterday, following moves by major banks. .I 1648 .C earn 1 .T HEALTH IMAGES INC 4TH QTR LOSS. .W ATLANTA, April 2 - Shr loss one ct vs loss seven cts Net profit 108,419 vs loss 241,192 Revs 2,044,882 vs 317,266 Year Shr loss 18 cts vs loss 23 cts Net loss 430,027 vs loss 432,982 Revs 5,088,065 vs 416,777 NOTE: Share after preferred dividends. .I 1649 .C earn 1 .T SHELL CANADA SEES BETTER PROFIT, LOWER SPENDING. .W CALGARY, Alberta, April 2 - , 72 pct owned by Royal Dutch/Shell Group, anticipates an improved level of earnings in 1987, assuming a continuation of prices and margins that existed at the end of 1986 and early 1987, the company said in the annual report. Shell previously reported 1986 operating profit fell to 130 mln dlrs, excluding a 24 mln dlr unusual gain, from 146 mln dlrs in the prior year. The company also said 1987 capital and exploration spending of 420 mln dlrs will be 160 mln dlrs lower than last year, due to the uncertain short-term outlook. .I 1650 .C earn 1 .T UTILICORP SEEKS TO SPLIT STOCK. .W KANSAS CITY, Mo., April 2 - Utilicorp United Inc said its management is recommending to the board of directors a three-for-two stock split and an increase in the quarterly cash dividend rate, currently at 37 cts per common share. The company said it is also submitting to shareholders at its May 21 annual meeting a proposal authorizing an additional class of common stock. Utilicorp said the board of directors will vote on the split at its next regularly scheduled board meeting on May 6. It added that its semi-annual four pct stock dividend will not change. Utilicorp said the proposal to create a new class of stock, if approved, will authorize 20 mln shares of Class A common stock with a par value of one dlr. The stock could be issued in various series with terms, rights and preferences designated by the board in each instance, Utilicorp said. The company said the new stock is intended to enhance Utilicorp's ability to carry out future financings, investments, acquisitions or for other corporate purposes. .I 1652 .C gnp 1; money-supply 1 .T BANK OF SPAIN GOVERNOR SAYS MONEY GROWTH TOO FAST. .W MADRID, April 2 - Bank of Spain governor Mariano Rubio said the central bank was worried that money supply was growing too fast, reflecting excessive internal demand in the Spanish economy, but added that he was confident recent measures would succeed in restricting money growth. In testimony to the economic commission of Congress, Rubio said the main measure of money supply, the broad-based Liquid Assets in Public Hands, grew at an estimated annualised rate of 17 pct in March, the same as in February. The bank's target range for growth in this measure in 1987 is 6.5 to 9.5 pct, compared with 11.4 pct last year. Rubio said he was aiming for the lower end of the range. He added that real GDP growth of three pct in 1986 was due to a six pct increase in real internal demand and a three pct real drop in the contribution of the external sector. The aim for 1987 was for the same real growth in GDP but a drop in the internal contribution to 4.5 pct with the negative component of the external sector trimmed to 1.5 pct, he said. .I 1655 .C earn 1 .T AMERICAN REALTY SETS RECORD DATE FOR OFFER. .W DALLAS, April 2 - American Realty Trust said its board has set April 3 as the record date for its previously announced rights offering, and the rights will be issued on April 6 and expire May 22. Shareholders will be able to subscribe for 1.25 shares for each share held, at a price of 3.75 dlrs per share. .I 1656 .C earn 1 .T CARTER-WALLACE INC SETS REGULAR PAYOUT. .W NEW YORK, April 2 - Qtly div 20 cts vs 20 cts prior Pay June 1 Record April 16 .I 1659 .C grain 1; corn 1 .T EC SETS EXPORT LICENCES ON 20,000 TONNES MAIZE. .W PARIS, April 2 - The European Community Commission awarded export licences for 20,000 tonnes free market French maize at a maximum export rebate of 129.40 European currency units (Ecus) per tonne, trade sources said here. All requests for export licences for free market feed wheat and barley were rejected, they said. .I 1661 .C palm-oil 1; veg-oil 1 .T PAKISTAN TO TENDER FOR RBD PALM OLEIN TOMORROW. .W LONDON, April 2 - Pakistan will tender tomorrow for 12,000 tonnes of refined bleached deodorised palm olein tomorrow, split in two equal cargo lots for first and second half April shipments, traders said. The tender will be financed with Islamic Development Bank credit. .I 1663 .C grain 1; corn 1 .T USDA DENIES CHANGES IN TEXAS GULF DIFFERENTIALS. .W WASHINGTON, April 2 - No changes have been made or are being planned in the Agriculture Department's calculation of price differentials between interior grain locations and the Texas Gulf, a senior USDA official said. Ralph Klopfenstein, USDA deputy administrator for commodity operations, told Reuters, "We do not anticipate any changes to be made" in the Texas Gulf differentials used to calculate posted county prices for corn. "We do not relate the Texas Gulf structure with the Louisiana Gulf structure at all. It's a totally different situation," he said. Rumors had circulated through the market this morning that USDA had widened Texas Gulf differentials in a similar manner to last weekend's adjustments with the Louisiana Gulf. .I 1664 .C money-fx 1; stg 1 .T ****** Lawson says his sterling target comments were misunderstood, and insignificant. .W Blah blah blah. .I 1668 .C interest 1 .T J.P. MORGAN INCREASES PRIME RATE. .W NEW YORK, April 2 - J.P. Morgan and Co Inc said it is raising its prime lending rate to 7-3/4 pct from 7-1/2 pct, effective today. Most major U.S. banks are now posting a 7-3/4 pct rate. Citibank was the first to announce an increase on Tuesday. .I 1669 .C money-fx 1; stg 1 .T ******LAWSON SAYS HIS STERLING-TARGET COMMENTS WERE MISUNDERSTOOD AND INSIGNIFICANT. .W Blah blah blah. .I 1697 .C nat-gas 1 .T COOPER BASIN NATURAL GAS RESERVES UPGRADED. .W ADELAIDE, April 3 - Remaining recoverable gas reserves in the areas held by the Santos Ltd -led Cooper Basin joint ventures have been upgraded to 2,721.7 billion cubic feet (bcf) from the 2,466 estimated last May, Santos said. The upgrading followed a re-review by consultant in light of the large number of gas finds since May 1986, Santos said in a statement. This means that total contractual commitments of 2,455.5 bcf to of New South Wales and the Pipeline Authority of South Australia can be met with spare gas available for sale in South Australia, it said. .I 1700 .C interest 1 .T ANZ BANK TO CUT AUSTRALIAN PRIME RATE TO 18 PCT. .W MELBOURNE, April 3 - Australia and New Zealand Banking Group Ltd said it will lower its Australian prime lending rate to 18 pct from 18.25, effective April 6. The cut is the second announced by the bank in the last week, following a cut from 18.5 pct effective last Monday. The ANZ's new rate will be the lowest prime set by the four major trading banks and matches the rate set by one of the smaller foreign banks in January and left unchanged during the rise in primes over the last three months. Other primes range from 18.25 to 18.5 pct, including those of the other three majors. .I 1701 .C interest 1 .T ANZ BANK IN N.Z. RAISES INDICATOR LENDING RATE. .W WELLINGTON, April 3 - The Australia and New Zealand Banking Group Ltd in New Zealand said it will raise its indicator lending rate to 23 pct from 21.5 pct on April 7. A bank statement said the continuing rise in the cost of funds had to be passed on to the lending customers. ANZ managing director Brian Weeks said: "Recent developments in the money markets are of deep concern to all participants ... Market participants are understandably nervous and cautious about future developments. These include flows to and from the government relating to the privatisation of seven government departments on April 1. "We welcome the flexibility evident in the Reserve Bank's move to raise the system cash target yesterday, but feel that to reduce the present nervousness the cash target and primary liquidity level need to be raised further...," he said. The Reserve Bank has raised its daily cash target to 45 mln N.Z. Dlrs from its normal 30 mln dlrs. Call rates have traded as high as 65 pct this week because of business year-end March 31 balance date book squaring. Westpac Banking Corp in New Zealand announced yesterday it would increase its indicator lending rate by 1.5 percentage points to 22.5 pct on April 7. .I 1706 .C livestock 1; carcass 1; orange 1 .T JAPAN/U.S. AGRICULTURE TALKS SET FOR APRIL 17, 20. .W TOKYO, April 3 - Agriculture Minister Mutsuki Kato said he will meet U.S. Agriculture Secretary Richard Lyng here on April 17 and 20 to discuss bilateral farm trade issues. Lyng will visit Tokyo from April 16 to 27. Kato told reporters after a cabinet meeting all topics ofconcern to the U.S. Will be discussed, such as trade in beef and oranges and import controls on farm products. He said Shintaro Abe, the ruling Liberal Democratic Party's executive council chairman, would propose some unspecified measures in response to demands to ease import controls on U.S. Farm products. Kato declined to give any details. .I 1710 .C money-fx 1; interest 1 .T NEW DUTCH ADVANCES TOTAL 4.1 BILLION GUILDERS. .W AMSTERDAM, April 3 - The Duth Central bank said it accepted bids totalling 4.086 billion guilders at tender for the new twelve-day special advances at an unchanged 5.3 pct. Bids up to 30 mln guilders were met in full, amounts above at 40 pct. The new advances, covering the period April 3 to 15, replace the current 4.2 billion guilder nine-day facility at 5.3 pct, which expires today. Money market dealers said the total amount allocated was in line with expectations and would be sufficient to cover the money market shortage for the duration of the facility. .I 1712 .C jobs 1 .T GERMAN MARCH UNADJUSTED JOBLESS FALLS. .W NUREMBERG, April 3 - West German unemployment, unadjusted for seasonal factors, fell to 2.41 mln in March from 2.49 mln in February, the Federal Labour Office said. The total represents 9.6 pct of the workforce compared with 10.0 pct in February. The seasonally adjusted jobless total rose, however, in March to 2.23 mln from 2.18 mln in February, it added. In March last year the unadjusted unemployment total stood at 2.45 mln and represented 9.8 pct of the workforce. Seasonally adjusted unemployment was 2.29 mln. The Federal Labour Office said the number of workers on short time rose by 80,629 to 462,802 and the number of vacancies increased by 15,263 to 180,047. Labour Office President Heinrich Franke, announcing the figures, said the hesitant decline in the unadjusted jobless total reflected continuing bad weather, slack activity in the capital goods sector and structural changes in the coal and steel industry. In a separate statement, the Federal Statistics Office said the rise in the overall number of people in employment had slowed in February. The Office said that, according to estimates for February, 25.7 mln people were in work, a rise of around 240,000 or 0.9 pct compared with the same month in 1986. It noted that in January the year-on-year rise was 250,000 or 1.0 pct and the number in work stood at 25.78 mln. The decline in February compared with January reflected seasonal factors, it added. .I 1714 .C money-fx 1; interest 1 .T U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG. .W LONDON, April 3 - The Bank of England said it has forecast a shortage of around 700 mln stg in the system today. Among the main factors, maturing assistance and take-up of treasury bills will drain 546 mln stg, bills for repurchase by the market 76 mln, a rise in note circulation 310 mln and bankers balances below target 105 mln. The outflow will be partly offset by 340 mln stg exchequer transactions. .I 1715 .C palm-oil 1; veg-oil 1 .T PORLA CRUDE PALM OIL TRADE REPORT FOR APRIL 2. .W KUALA LUMPUR, April 3 - The Palm Oil Registration and Licensing Authority (PORLA) reports trade in crude palm oil (cpo) on April 2 as follows in ringgit per tonne delivered unless stated. April 752.50 south and central 751 north average 752.50 down 6.50. May 750 south down 11. Refined palm oil traded in bulk US dlrs per tonne fob. RBD palm oil May 320. RBD palm olein April 336 May 337.50 June 337. RBD palm stearin May 275. The cpo market was lower in light trading, with April traded between 747.50 and 755 ringgit per tonne. The refined palm oil market was slightly easier and April delivery of RBD palm olein to Singapore traded at 856.50 ringgit per tonne. .I 1717 .C money-supply 1 .T TAIWAN ISSUES MORE CERTIFICATES OF DEPOSIT. .W TAIPEI, April 3 - The Central Bank issued 5.65 billion dlrs worth of certificates of deposit (CDs), boosting CD issues so far this year to 147.58 billion, a bank spokesman told Reuters. The new CDs, with maturities of six months, one year and two years, carry interest rates ranging from 4.07 pct to 5.12 pct, he said. The issues are intended to help curb the growth of the M-1b money supply which has grown as a result of increasing foreign exchange reserves. The reserves hit a record 53 billion U.S. Dlrs last month. .I 1720 .C acq 1 .T MIM COMPLETES PART OF NORDDEUTSCHE AFFINERIE BUY. .W BRISBANE, April 3 - MIM Holdings Ltd said it has issued 23.33 mln shares to Preussag AG to complete the previously announced purchase of 20 pct of from Preussag. Terms of the acquisition of 10 pct of Norddeutsche Affinerie from Degussa AG are currently being resolved, MIM said in a statement. Norddeutsche Affinerie will then be owned 40 pct by Metallgesellschaft AG and 30 pct each by MIM and Degussa, but MIM said it and Metallgesellschaft are proposing a further arrangement to give them 35 pct each. .I 1721 .C jobs 1 .T DANISH UNEMPLOYMENT FALLS TO 7.8 PCT IN FEBRUARY. .W COPENHAGEN, April 3 - Denmark's seasonally adjusted unemployment rate fell to 7.8 pct of the workforce in February from 7.9 pct in January, against 7.9 pct in February 1986, the National Statistics Office said. The total number of unemployed in February was 213,200 against 215,700 in January and 216,600 in February, 1986. .I 1722 .C meal-feed 1; soy-meal 1 .T EUROPEAN SOY/FEED MARKET OPENS QUIETLY. .W ROTTERDAM, April 3 - Meals and feed on a cif Rotterdam basis opened quietly this morning with mixed to slighlty firmer seller indications compared with yesterday's midday levels, market sources said. Early buying interest was low despite a weaker dollar against European currencies, they added. No trades were reported so far. US soymeal indicated between unchanged and one dlr a tonne lower compared with yesterday. Brazilian soymeal pellets were offered between one dlr lower and one higher, while Argentines indicated up to two dlrs a tonne higher than yesterday. Cornglutenfeed pellets were indicated between unchanged and one dlr lower, while citruspulp pellets were offered at slightly firmer levels compared with yesterday midday. Seller indications for sunmeal pellets were between one dlr higher and 0.50 dlrs lower than yesterday, while linseed expellers were up to two dlrs above yesterday's midday levels. .I 1723 .C tea 1 .T PAKISTANI DECISION WILL HURT KENYAN TEA EXPORTS. .W NAIROBI, April 3 - Pakistan's decision to suspend tea import licences will hurt Kenyan tea exports in the short term while exporters seek new markets, sources close to Nairobi broking houses and exporters said. Broking house officials in the Sri Lankan capital Colombo yesterday told Reuters Pakistan had suspended the licences in order to link tea imports to Pakistani exports. The latest available figures show that Kenyan exports to Pakistan, mainly tea, were worth 75 mln dlrs in 1985, while imports from Pakistan amounted to only 4.8 mln dlrs. Kenya provides over 50 pct of Pakistan's tea imports. The Nairobi sources said the Pakistani decision did not come as a surprise as Pakistan had been complaining of the trade imbalance for some time. "We are very disappointed that Pakistan took such action ... (it) will certainly hurt Kenya's tea industry in the short term as Pakistan is Kenya's second largest market," a source at one broking house told Reuters. One tea broker said Pakistan's move had already affected Kenya's tea trade and was largely responsible for an average fall of two shillings a kilo at the export auction in Mombasa last Monday. "The trend is likely to continue until other countries replace Pakistan, which usually buys all qualities of our tea," he added. Kenya has for a long time relied on Britain, Pakistan, Egypt and, to a lesser extent the United States, as major markets for its tea, the sources added. Small-scale exporters who export mainly to Pakistan would be worst hit by the Pakistani move as it would take them longer to find new outlets, they said. .I 1724 .C trade 1 .T SWEDISH PRIME MINISTER'S CHINA VISIT BOOSTS TRADE. .W PEKING, April 3 - An big expansion in bilateral trade is expected as a result of Swedish Prime Minister Ingvar Carlsson's visit to China, a official of China's Foreign Economic Relations and Trade Ministry official said. He told the China Daily that petroleum, coal, cotton, non-ferrous metals and electric engines could help balance the trade running at over three-to-one in Sweden's favour. Total trade reached 290 mln dlrs last year, up 32 pct on 1985, according to Chinese statistics. Swedish sources said major paper mill projects and an aviation agreement would be discussed during Carlsson's one week visit. .I 1726 .C oilseed 1; soybean 1 .T TAIWAN BUYS 54,000 TONNES OF U.S. SOYBEANS. .W TAIPEI, April 3 - The joint committee of Taiwan soybean importers awarded a contract to Cigra Inc of Chicago to supply a 54,000 tonne cargo of U.S. Soybeans, a committee spokesman told Reuters. The cargo, priced at 213.87 U.S. Dlrs per tonne c and f Taiwan, is for delivery between April 20 and May 5. .I 1727 .C money-supply 1 .T SOUTH KOREAN MONEY SUPPLY FALLS IN MARCH. .W SEOUL, April 3 - South Korea's M-2 money supply fell two pct to 33,463.4 billion won in March from 34,030.3 billion in February, provisional Bank of Korea figures show. It rose a revised 0.5 pct in February and was up 14.7 pct from a year earlier. M-1 money supply fell 8.7 pct to 7,767.8 billion won in March against a revised rise of 4.3 pct in February. It has increased 8.3 pct since March last year. Bank officials said the March falls were due mainly to various measures by the bank to absorb excess money. .I 1728 .C acq 1 .T SKANDIA INTERNATIONAL BUYS STAKE IN NEVI BALTIC. .W STOCKHOLM, April 3 - , the overseas offshoot of Swedish insurance group Forsakrings AB Skandia said it was buying a 29.9 pct share in the London-quoted property and financial services company . No financial details were given. Nevi Baltic, with a 1986 turnover of 20 mln stg and total assets of 70 mln stg, is controlled by Norwegian finance company which will retain a 30.1 pct stake in the British unit, Skandia said in a statement. The deal is subject to formal approval from the Swedish central bank, the statement added. .I 1729 .C sugar 1 .T LONDON SUGAR OPENS STEADY BUT QUIET. .W LONDON, April 3 - Raw sugar futures had a quiet opening call of 38 lots with prices holding steady from last night with gains of 20 to 80 cents a tonne, dealers said. Aug was trading at 157.60 dlrs from 157.40 asked yesterday. The modest rise continued the recent rally from an oversold situation but, dealers noted, there was little fresh physicals news to stimulate activity. Whites tenders are scheduled for next Wednesday by Syria for 36,000 tonnes and Greece for 40,000 tonnes while Pakistan is due to tender on April 11 for 100,000 tonnes whites, they said. This week has seen whites buying by India and Egypt. .I 1730 .C ship 1 .T AUSTRALIAN TUG CREWS DELAY FOREIGN CONTAINER SHIPS. .W SYDNEY, April 3 - Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said. .I 1731 .C wheat 1; grain 1 .T U.K. WHEAT MARKET EASES ON INTERVENTION RELEASE. .W LONDON, April 3 - U.K. Domestic wheat markets dropped about one stg per tonne early this morning following overnight news that the EC is releasing a further 300,000 tonnes of wheat from British intervention stores for the home market over a three month period. April deliveries of denaturable wheat were offered in East Anglia at 124 stg and May at 125 stg per tonne, both one stg down on yesterday's traded rates. The market is expecting U.K. Wheat futures to show a similar loss at today's opening. .I 1732 .C cocoa 1 .T LONDON COCOA TRADES AT LOWS BY MIDMORNING. .W LONDON, April 3 - Cocoa futures fell to session lows by midmorning, posting losses from last night of six to two stg a tonne in 1987 deliveries, dealers said. Weekend profittaking by jobbers and general book-squaring featured the fall which was aided by steady sterling versus the dollar and lack of offtake in the physicals market. Dealers said the market was switch and straddle-bound, in that any pressure on one particular month was certain to be reflected in adjacent deliveries. The undertone, however, remained cautious as operators await an eventual start to ICCO buffer stock buying, dealers said. The market was originally forecast to open with average five stg gains from last night following New York's firmer close yesterday, dealers said. But this was largely counter-balanced by currency factors. Near July traded at its session low of 1,327 stg after one hour versus 1,333 bid last night and an early high of 1,335. Volume midmorning was 730 lots including 350 lots crossed and 108 switches. There was no sign of any origin activity. .I 1736 .C acq 1 .T HORIZ0N AGREES TO 94.8 MLN STG BID FROM BASS. .W LONDON, April 3 - Bass Plc and said terms have been agreed for an offer worth around 94.8 mln stg for Horizon by Bass. The offer values each Horizon share at some 0.213 of a Bass ordinary share, or 190p. This is based on a price of 892p, the Bass share quotation at 1630 gmt on April 2. Horizon said its board and financial advisers consider the offer to be fair and reasonable and the board will unanimously recommend acceptance to its shareholders. Horizon shares jumped 23p to 188 after the announcement while Bass shares dipped 13p to 879. Bass has for some time regarded overseas holidays as an area for expansion and in pursuit of this objective, acquired a 25.6 pct holding in Horizon in 1985 when it set up the jointly owned hotel company. Both Bass and Horizon said that Bass's resources will enable Horizon's businesses to expand strongly this year. On March 30 Bass said it had agreed to sell its Pontins U.K. Holiday camps to a newly formed private company, Pontins Ltd, for some 57.5 mln stg. .I 1737 .C ship 1; grain 1 .T ROTTERDAM'S MAIN GRAIN TERMINAL CLOSED BY STRIKE. .W ROTTERDAM, April 3 - Grain handling at Rotterdam port's main grain terminal was at a standstill today as members of the largest Dutch transport union FNV staged a lightning strike for the third day running. Pieter van der Vorm, managing director of Graan Elevator Mij (GEM), which handles 95 pct of grain passing through the port, said their main Europoort terminal was out of action because of a strike by technical staff. The actions, in support of union demands in negotiations over a new labour agreement, began on Wednesday when grain handlers stopped work. Van der Vorm said that if strikes continued on today's scale for some time vessels coming to unload grain in Rotterdam would face delays, but this was not happening yet. Wednesday's actions left GEM's facilities 40 pct operational, and there were only limited strikes yesterday. Talks between unions and employers yesterday and today produced no result, but FNV spokesman Bert Duim said the union was prepared to put their key demand, for a 36 hour working week, at the bottom of the agenda. Van der Vorm said, however, the union's demands on a range of issues were far in excess of the management's final offer. .I 1739 .C ship 1; pet-chem 1 .T SOUTH KOREA TO PAY MORE FOR JAPANESE ETHYLENE. .W TOKYO, April 3 - South Korea will pay about 20 pct more for ethylene imported from Japan in the second quarter of the year because increased plastic production in both countries has boosted demand and tightened supplies, chemical industry sources said. South Korea has agreed to pay Japanese trading houses just over 400 dlrs C and F per tonne, up from an average of 350 dlrs in the first quarter and throughout 1986, they said. South Korean demand for imported ethylene this month has risen to 17,000 tonnes from 10,000 last month, and the country may face difficulties covering the extra volume, they said. , a producer of high density polyethylene (HDPE) and polypropylene, will more than double its ethylene requirements to 9,000 tonnes a month from 4,000 when it completes a plant expansion at the end of this month, the sources said. import requirements have risen to 8,000 tonnes a month from 6,000 tonnes last year to meet strong demand from , which makes HDPE and ethylene glycol, and , which produces low-density polyethylene and vinyl chloride monomer, they said. But Japan's ethylene plants are already operating at almost full capacity of 4.5 mln tonnes a year just to fulfill domestic demand, the sources said. "And even if Japan had the additional ethylene, there is a logistical problem of finding extra appropriate-sized vessels to ship it to Korea," said one trading house source. Japanese trading companies are looking to alternative sources to supply South Korea's needs, including Saudi Arabia, Qatar and Mexico, they said. But long-haul voyages are expensive as the product has to be shipped at a temperature of minus 103 degrees centigrade to keep it in a liquid form, they said. Japan has no plans to invest further in the ethylene industry in order to cope with the additional demand, despite rising prices, trading house sources said. South Korea has two projects in hand which will increase its ethylene production capacity by 500,000 tonnes a year by the end of 1989, so the strong demand surge for imports is only a medium-term trend, they said. .I 1740 .C gnp 1; cpi 1; ipi 1 .T SWISS 1988 INFLATION SEEN AT TWO PCT - INSTITUTE. .W ZURICH, April 3 - Swiss inflation is likely to rise in 1987 and 1988 because of inflationary tendencies in the domestic economy, the Centre for Economic Research of the Federal Institute of Technology said in its spring review. It forecast a rise in consumer prices of two pct in 1988 compared with 1.3 pct in 1987. Low import prices in 1986 helped to keep annual inflation down to 0.8 pct. The centre said that in general the outlook for the Swiss economy in 1987 and 1988 remained favourable, despite the more difficult international economic climate facing export industry. The centre repeated its previous forecast that growth in Swiss domestic product would slow to 2.2 pct in 1987 from 2.5 pct in 1986. It revised its forecast for 1988 GDP growth to 1.7 pct from 1.6 pct in its last autumn review. Domestic demand will continue to replace exports as the motor of economic growth. Private consumption will grow by three pct in 1987 and two pct in 1988 against 3.75 pct in 1986. Growth in goods exports will slow to 1.75 pct in 1987 from 2.1 pct in 1986 but pick up slightly to 2.5 pct in 1988. All three figures are well below the Swiss average for recent years. In 1985, for example, exports increased by 9.1 pct. The centre said the strength of the Swiss franc, which has firmed sharply in recent months, would continue to put pressure on Swiss exporters. It forecast that imports of goods would grow by a more modest 4.5 pct in 1987 and 3.25 pct in 1988 than in 1986, when import prices fell substantially and imports rose by 8.2 pct. Industrial production will grow by 1.6 pct in 1987 and 1.2 pct in 1988 compared with 4.2 pct in 1986. .I 1741 .C sugar 1 .T LONDON SUGAR TRADES AT SESSION HIGHS BY MIDMORNING. .W LONDON, April 3 - Raw sugar futures firmed to session highs by midmorning, securing gains from last night's basically steady close of 1.00 to 1.80 dlrs a tonne in a 166 lot volume. Shortcovering against an oversold situation continued to play a part in the extended rally with unsettled dollar rates versus sterling providing additional support. Recent and prospective whites buying in the world market was supportive but the raws section lacked feature, dealers said. India and Egypt bought white sugar this week while next week sees tenders by Pakistan, Greece and Syria, they said. May was at 154 dlrs from 152.80 asked last night. All London Daily prices rose two dlrs a tonne on tone. The Raws price was set at 150 dlrs Fob and 173 dlrs (107.50 stg) Cif. The Whites price was at 192 dlrs from 190 yesterday. .I 1743 .C interest 1 .T BELGIUM CUTS TREASURY CERTIFICATE RATES. .W BRUSSELS, April 3 - The Belgian National Bank cut interest rates on one, two and three-month treasury certificates to 7.30 pct from 7.40 pct effective immediately, the bank said in a telex message. The Bank last adjusted its short-term treasury certificate rates on March 23, when it also reduced rates for all three periods by 0.10 points. A National Bank spokesman said the latest adjustment would bring the rates closer in line with currently prevailing interbank interest rates. The spokesman said it was too early to predict whether the move would herald a reduction in discount rate, which currently stands at eight pct, when the Bank holds its regular weekly meeting at which the rate is discussed next Wednesday. The discount rate generally moves in tandem with the three-month treasury certificate rate. However, there is no formal link and the discount rate was not adjusted following the March 23 changes. .I 1744 .C crude 1 .T CLOSURE OF BP SWEDEN REFINERY FORECAST. .W STOCKHOLM, April 3 - A Swedish Finance Ministry committee forecast that British Petroleum Plc may have to close its refinery in Gothenburg because of an anticipated worsening of the Swedish petroleum industry's competitiveness. It said in a report that the future of the Swedish refining business was bleak due to the steady drop in domestic oil consumption since the mid-1970s, a possible tightening of rules on sulphur content and competition from Norway's Mongstad facility of (Statoil) when its expansion is completed in the 1990s. The committee said the BP refinery, which lacks a de-sulphurisation plant, was likely to be closed or sold unless costly investments were made to enhance the facility's capacity to refine a broader range of products. But the committee noted that capacity utilisation had in recent years been above that of the European refining industry on average. The BP plant, in which Sweden's state-owned has a 22 pct, started up in 1967 and has an annual capacity of 4.7 mln tonnes. There was nobody at British Petroleum immediately available for comment. .I 1747 .C sugar 1 .T RECENT SUGAR FALL SPARKS SOVIET, CHINESE BUYING. .W LONDON, April 3 - The recent fall in world sugar prices, due to increased producer pricing sales and evidence of export availability, has encouraged renewed buying interest from China and the Soviet Union, London trade house E.D.And F. Man said. Further purchases are expected by the Peoples Republic of China at the lower end of the recent price range, which should limit the downside movement, it said in its latest monthly market report. "And it is believed that the Soviet Union will need to return to the market to take a further 250,000/350,000 tonnes for May/June shipment, Man added. The Soviets purchased five cargoes of raws for April/May shipment towards the end of last month, which brings its total purchases to around 1.65 mln tonnes, Man said. Production estimates for the Thai crop now exceed 2.3 mln tonnes and the final outturn appears set to reach around 2.5 mln tonnes. However, this upturn in the Thai crop is being countered by a reduction in China's production forecast to 5.3 mln tonnes from 5.5 mln estimated earlier. Market participation by Cuba suggests that its crop could be close to last year's 7.3 mln tonnes. But even with similar production Man expects Cuban exports to be significantly down. Cuba was reported to be carrying 1.3 mln tonnes of stocks in September 1985, of which some 440,000 tonnes were used to boost its 1985/86 exports to about 6.9 mln. But as it will not be able to draw on surplus stocks this year, Man estimates Cuba's export availabilty will be reduced to 6.4 to 6.5 mln tonnes. However, Cuba is only one of a large number of exporters with reduced availability, Man said. Since 1980 the total free market export supply has fallen to 18 mln from about 22 mln tonnes. But at the same time free market demand has also fallen by almost the same amount, which has left exporters chasing falling import requirements. A fairly tight balance now appears to have emerged. But the difficult task of keeping production advances at bay still remains, as at least one more season of production deficit is needed to eliminate some of the remaining surplus stocks still overhanging the market, Man said. The increasing cases of record production as a result of record yields and better husbandry have forced sugar producers to strive for greater efficiency. As this increase in efficiency reduces the marginal cost of production, sugar exporters may become more responsive to prices and in particular to upward price movements, Man said. Commenting on the current row between the EC Commission and sugar producers, Man said despite the recent improvement in the level of restitutions, they are still insufficient to fully compensate producers when exporting on the world market. Unless there are further improvements, at least some sugar is expected to remain in intervention, it added. .I 1749 .C dlr 1; money-fx 1 .T NO INTERVENTION, DOLLAR FIXED AT 1.8162 MARKS. .W FRANKFURT, April 3 - The Bundesbank did not intervene as the dollar was fixed lower at 1.8162 marks after 1.8270 yesterday, dealers said. The dollar firmed slightly from its opening 1.8135/45 marks in very quiet pre-weekend trading and dealers said they expected business to remain thin this afternoon. "Trading is at an absolute nil, nobody wants to get involved ahead of next week's meetings," one dealer with a U.S. Bank said, referring to the Group of Seven industrial nations and the International Monetary Fund meetings in Washington. Dealers saw the dollar staying at current levels but possibly rising above 1.83 marks on any supporting remarks emerging from the meetings. "But the dollar's medium-term direction is soft," one dealer said. The dollar could well come under renewed pressure after the international forums as attention returned to the U.S. And the U.K.'s trade dispute with Japan, dealers said. Cross currency trading was also subdued though sterling's rise above 1.60 dlrs helped it to firm against the mark. It was fixed higher at 2.924 marks after yesterday's 2.910. The pound was seen staying between 2.90 and 2.93 marks for the next days, dealers said. Eurodollar deposit rates were steady from this morning, with six month funds unchanged at midpoint 6-11/16 pct. Six month euromarks stayed at midpoint 3-7/8 pct. The Swiss franc firmed to 119.86 marks per 100 at the fix from 119.71 yesterday and the yen rose to 1.244 marks per 100 from 1.243. The French franc was little changed at 30.050 marks per 100 after 30.055 yesterday. .I 1752 .C earn 1 .T HINDUSTAN LEVER PROFITS RISE FOR 1986. .W BOMBAY, April 3 - Shr 8.4 rupees vs seven Pretax profit 650.7 mln vs 555.6 mln Net profit 390.7 mln vs 325.6 mln Sales 8.24 billion vs 7.07 billion Div 34 pct vs 30 pct Tax 260 mln vs 230 mln Dividend payable on June 3 The company is 51 pct subsidiary of Unilever Plc.The full name of the company is HINDUSTAN LEVER LTD . .I 1754 .C money-fx 1 .T U.K. MONEY MARKET DEFICIT REVISED UPWARD. .W LONDON, April 3 - The Bank of England said it has revised its estimate of today's shortfall to 750 mln stg from 700 mln. .I 1755 .C veg-oil 1; soy-oil 1 .T INDIA BUYS VEGETABLE OILS, PAKISTAN TO RETENDER. .W LONDON, April 3 - The Indian State Trading Corporation (STC) bought 20,000 tonnes of optional origin soybean oil and 6,000 tonnes of rbd palm olein at its import tender yesterday, traders said. Pakistan, however, rejected offers at its tender for 12,000 tonnes of rbd palm oil, but is expected to reenter the market next week, they said. The STC soyoil purchase was for May 20/Jun 20 shipment at 319 dlrs per tonne cif and the palm olein for Apr 25/May 25 shipment at 355 dlrs per tonne. .I 1756 .C meal-feed 1; soy-meal 1 .T DUTCH SOYMEAL IMPORTS FALL IN JANUARY. .W HEERLEN, Netherlands, April 3 - Dutch soymeal imports fell to 75,500 tonnes in January from 97,070 in December and 120,228 in January 1986, Central Bureau of Statistics figures show. The U.S. Was the largest supplier in January with 38,760 tonnes, down from 46,899 in December and 63,111 in January 1986. Brazil supplied 1,263 tonnes in January, down from 7,411 in December and 27,088 in January 1986. Dutch imports of Argentine soymeal in January were 34,663 tonnes, down from 41,365 tonnes in December but above the 13,375 tonnes in the year ago month. Total Dutch exports of soymeal in January were 128,015 tonnes, down from 133,559 tonnes in December and 155,050 exported in January 1986. European Community countries were the main destinations for Dutch soymeal exports with 102,355 tonnes compared with 124,026 in December and 116,080 in January 1986. Among third country destinations, the Soviet Union was the largest costumer in January, taking 11,985 tonnes compared with nil in December and 26,074 tonnes in January 1986. .I 1757 .C gnp 1 .T SPAIN REVISES ECONOMIC TARGETS FOR 1987. .W MADRID, April 3 - Spain has revised some of its main economic targets for 1987 after studying the performance of the economy in the first quarter, the economy ministry said in its monthly bulletin. Internal demand is now forecast to rise four pct against a previous target of 3.5 pct. Mariano Rubio, governor of the Bank of Spain, the central bank, yesterday said internal demand was currently growing at an annual rate of six pct and it had to be brought down to four pct if the government were to meet its five pct inflation target this year. Inflation was 8.3 pct in 1986. The forecast for private consumption growth remains unchanged at three pct, although public consumption is revised upwards to 2.5 pct from 2.0 pct. Growth in domestic demand will fuel imports, expected to increase by 8.6 pct against an originally estimated 7.1 pct. Export growth has been revised downwards to 3.7 pct from 5.2 pct due to the peseta's continuing strength against the dollar and slack external demand. Slow growth of exports and a tight rein on state spending has lowered estimated GDP growth to three pct in 1987 from an earlier forecast 3.5 pct. GDP grew by three pct last year. The economy ministry is holding its inflation forecast to five pct, in spite of minister Carlos Solchaga's doubts last week on whether this target could be maintained if wage settlements continue to rise above the government's recommended five pct ceiling. Unions and employers dispute the average wage increases agreed so far this year. Trade unions calculate wage settlements have produced average rises of 7.3 pct against 5.5 pct estimated by the employers' federation CEOE. .I 1758 .C money-fx 1; interest 1 .T U.K. MONEY MARKET RECEIVES 170 MLN STG HELP. .W LONDON, April 3 - The Bank of England said it has operated in the money market this morning, purchasing 170 mln stg bank bills. This compares with the Bank's revised estimate of a 750 mln stg shortfall. In band two the Bank bought 72 mln stg at 9-13/16 pct, in band three 52 mln at 9-3/4 pct and in band four 46 mln at 9-11/16 pct. .I 1759 .C sugar 1 .T BEGHIN-SAY NOT PLANNING TO WITHDRAW SUGAR. .W By Audrey Stuart, Reuters PARIS, April 3 - French sugar producer Beghin-Say is not currently planning to withdraw the sugar it has placed into intervention, despite the exceptionally high rebate awarded at this week's European Community (EC) sugar tender, Beghin-Say President Jean-Marc Vernes told Reuters. The maximum rebate of 46.864 Ecus per 100 kilos on Wednesday was the largest ever granted, according to traders. Vernes said he was satisfied the European Commission has started to move in the right direction, but said his company had no plans to change its decision to put sugar into intervention. But Vernes said he hoped that in the next few weeks a final agreement would be reached with the commission which would allow operators to withdraw the sugar from intervention. European operators offered 854,000 tonnes of sugar into intervention to protest about export rebates which they say are too low. Over 785,000 tonnes of this sugar was accepted by the commission on Wednesday, according to commission sources. Under EC regulations, however, operators have another four to five weeks to withdraw the sugar from intervention before payment is made for it. A total of 706,470 tonnes of French sugar and 79,000 tonnes of West German sugar has been accepted into intervention, trade sources said here. This amount represents about a third of annual EC exports to non-EC countries. Beghin-Say declined to specify the amount of sugar it had offered into intervention, but said it was below 500,000 tonnes. Producers say they have been losing 2.5 to 3.0 Ecus on every 100 kilos exported due to the failure of rebates to fully bridge the gap between EC and world prices. Wednesday's rebate was 0.87 Ecus short of what producers say is needed to get an equivalent price to that for sales into intervention, traders said. Vernes said operators hope to get a rebate which equates to the full intervention price and said Wednesday's tender was a step in the right direction. Sugar producers here said the volume of sugar authorised for export since the begining of the current campaign had been inadequate and that more should be exported now to compensate. Trade sources said new regulations governing export rebates, which are due to be adopted shortly, may smooth the path for the commission to award larger export rebates in future. One source at a leading French sugar house said it seemed the commission had understood the protest action and was now moving towards adapting the situation accordingly, thereby allowing the operators to withdraw their sugar from intervention once they got satisfaction. .I 1760 .C money-fx 1 .T STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE. .W BONN, April 3 - West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next week's International Monetary Fund meeting in Washington that: "The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments." Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germany's exports. Stoltenberg said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. "No-one would benefit if, after years of over-valuation, the U.S. Dollar fell into the other extreme, that is, strong under-valuation," he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord, Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add. Stoltenberg also appeared to suggest that West Germany was now no longer under any pressure from the U.S. Government to stimulate its economy. He declined to respond specifically to a question on this subject but said, "You must attach particular importance to the consensus which was reached in Paris." The minister nevertheless added that he would make clear during his trip to Washington that West Germany's nominal trade figures gave a false impression about actual trade flows. Stoltenberg noted that in 1986 Bonn's exports fell by a nominal two pct while its nominal imports fell by 10.7 pct. West Germany's imports dropped largely because of foreign currency developments and the cheaper price of oil and led to a record trade surplus last year. However, Stoltenberg said that in real terms West Germany's exports by volume had increased by 1.5 pct while real imports had risen by a much stronger 6.2 pct. In this way West Germany had made its contribution to economic stability, Stoltenberg added. Stoltenberg noted the government expected imports to rise by a real four to five pct in 1987 with exports stagnating. He said it was too early to revise official forecasts for West Germany's economic growth this year. The government has forecast an unchanged 2.5 pct rise in Gross National Product. The Kiel Institute, a leading research body, is still expecting growth of three pct but some other research institutes have revised forecasts down to below two pct. Stoltenberg said the wide range of predictions showed how many imponderables had to be taken into account and said no drastic changes in official forecasts were needed. .I 1764 .C dlr 1; money-fx 1 .T JAPAN ASKS BANKS TO CUT DOLLAR SALES - DEALERS. .W TOKYO, April 3 - The Finance Ministry has asked Japanese commercial banks to moderate their dollar sales, bank dealers said. They said the Ministry had telephoned city and long-term banks earlier this week to make the request. One dealer said this was the first time the Ministry had made such a request to commercial banks. Finance Ministry officials were unavailable for immediate comment. Dealers said the Ministry has already asked institutional investors to reduce their sales of the dollar. .I 1765 .C gold 1; silver 1 .T CBT METALS/FINANCIALS DELIVERY LOCATIONS. .W Chicago, April 3 - The following deliveries are scheduled for April 6 against Chicago Baord of Trade Futures - Silver - 392 lots at Chicago, Illinois. Kilo Gold - 21 lots. 16 at Chicago, Illinois, 5 at New York, New York. .I 1766 .C acq 1 .T PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW. .W BRISBANE, April 3 - said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd on March 31 to be too low in view of the group*hK!UiIe and prospects. CSR's bid for the 68.26 pct of Pioneer's 99.80 mln issued shares it does not already hold values the entire grop_j9culd make an alternative share offer but has not yet announced terms. Pioneer recommended in a statement that shareholders retain their stock, pending the board's response once it receives full details of the CSR offer. .I 1768 .C earn 1 .T GERMAN CHEMICAL INDUSTRY SEES LOWER PROFITS. .W HANOVER, West Germany, April 3 - West Germany's chemical industry fears mounting risks will hurt earnings but hopes 1987 turnover will stabilize around 1986's 140 billion marks, Josef Strenger, a board member of the industry association VCI, said. Strenger, management board chairman of Bayer AG , told a news conference at the Hanover trade fair the main dangers were stagnation in world trade, the lower dollar as well as crude oil and commodity prices. Prospects of higher operating costs were also seen harming earnings, he said. Turnover took a considerable downturn at the start of 1987 after falling 5.9 pct in 1986. The chemical industry, which relies heavily on exports, was badly hit by mark appreciation in 1986 and lower turnover was mainly due to foreign exchange losses, Strenger said. Exports fell 6.4 pct to 72 billion marks in 1986 and competition from U.S. And British firms increased. Savings from lower oil and commodity prices were eaten up by price competition and increased costs. Strenger said 1986 operating profits of German chemical firms were slightly worse than the year before but the improved financial and balance sheet structure, after three good years, neutralized the negative impact. Strenger said the industry would try to increase production in the U.S. To make up for lost export possibilities out of West Germany. The lower dollar was the main reason for an 8.3 pct fall in exports to North America, an 11.4 pct drop to Latin America and 22.6 pct plunge to the Middle East. Exports to Western Europe eased 3.5 pct and Far East exports, due to an economic revival in Japan, dropped 5.2 pct. Strenger noted that the industry had lost public confidence following several cases of chemical pollution of the Rhine late last year. .I 1770 .C money-fx 1; reserves 1 .T GERMAN NET CURRENCY RESERVES RISE. .W FRANKFURT, April 3 - West German net currency reserves rose by 200 mln marks in the fourth week of March to 82.2 billion, following a rise of 300 mln marks in the previous week, the Bundesbank said. Non-currency reserves were unchanged at about 2.5 billion marks, bringing net monetary reserves to 84.7 billion. .I 1771 .C wheat 1; grain 1 .T LONDON GRAINS SEES WHEAT RECOVER FROM LOWS. .W LONDON, April 3 - U.K. Physical wheat values recovered from initial losses of one to two stg per tonne caused by overnight news of the release of an additional 300,000 tonnes of intervention feed wheat for U.K. Weekly home market tenders. Consumer buyers were attracted by the cheaper offers, traders said, and by early afternoon the market had recovered to one stg down to unchanged. U.K. Wheat futures also rallied to end the morning unchanged to 0.05 stg easier. In East Anglia, April deliveries of feed wheat traded at 123 and May at 124 but were subsequently bid one stg a tonne The market for denaturable wheat in Liverpool held comparatively steady with sellers holding back due to uncertain conditions. April deliveries made 127.50 and June 129.50 stg per tonne, basis Liverpool. The fob market for wheat started easier but here again selling pressure lifted around midday. Apr/Jun shipments traded fob east coast at 123 stg per tonne. This compared with 124 paid for April yesterday and 125 for May/June. .I 1772 .C crude 1 .T NORSK HYDRO, SAGA SEEK DRILLING RIGHTS IN GABON. .W OSLO, April 3 - Norwegian oil companies Norsk Hydro A/S and Saga Petroleum A/S said they have applied for offshore exploration drilling licenses in Gabon on Africa's west coast. Saga Petroleum said it has applied for a 35 pct share and operatorship on one block, adding Finnish oil company Neste (25 pct), Spain's Hispanoil (25 pct), and the World Bank's International Finance Corporation (IFS) (15 pct) have joined Saga to fill remaining shares in the application. Saga spokesman Roy Halvorsen told Reuters he expected Gabonese officials would reply to the application by Easter. Halvorsen said this is the first time Saga has applied to operate on OPEC-member Gabon's continental shelf, adding that Italian oil company Agip is heading a group of applicants in a separate bid for the same license. Norsk Hydro has also applied for an undisclosed share in a single exploration license in which U.S. Oil company Tenneco has already been assigned operatorship, company spokesman Bjoern Tretvoll said. .I 1774 .C interest 1 .T ******TOP DISCOUNT RATE AT UK BILL TENDER RISES TO 9.5261 PCT. .W Blah blah blah. .I 1775 .C money-fx 1 .T U.S. TREASURY POLICIES SAID UNCHANGED BY DEPARTURE. .W By Peter Torday WASHINGTON, April 2 - The departure of James Baker's closest aide, Deputy Treasury Secretary Richard Darman, will not change the course of Washington's domestic and international economic policies, U.S. officials said. Darman, who has worked alongside Baker for six years, was widely credited with helping him mastermind initiatives on currency management and international economic cooperation. U.S. Officials said Darman also played a key role in shepherding President Reagan's sweeping tax reform plan through the U.S. Congress. But they flatly dismissed suggestions that his departure, to the investment banking firm of Shearson Lehman Brothers, signaled the Baker team was breaking up, or that the Treasury Secretary himself might leave soon. "It really does not mean that, he took the opportunity as it came up," one official said. Another commented, "Baker will miss him, but he's not going to stand in his way." There has been widespread speculation since last autumn that Darman sought a Wall Street job. Officials said Darman felt the passage of tax reform late last year marked an appropriate moment to bow out. Baker acknowledged Darman would be sorely missed. "Dick Darman has contributed mightily to the success of this administration over the past six years and his departure represents a substantial loss," he said. U.S. Officials admitted Darman's absence would be an undoubted blow to Baker, who has relied on him for policy advice, both at the White House and, in Reagan's second term, at the Treasury. One aide once described Darman as "indispensable" to Baker. Baker is widely thought to want a more stable currency system and Darman is generally credited by officials of other nations as Baker's leading theorist on this issue, favouring target zones to limit currency fluctuations. Earlier this year, monetary sources said the U.S. Treasury unsuccessfully sounded out allies on a target zone system. But a U.S. Official disputed the assessment that, with Darman gone, Baker would abandon international initiatives. Baker's work as head of Reagan's Economic Policy Council, spearheading trade policy, and his skills in negotiating with the Democrat-controlled Congress will go on as before. Darman's strength was not as an economist, but as a political strategist "and that's Baker's strength too," the official said. There were already indications that Baker, who throughout his time in government has relied on a closely-knit circle of advisers, has moved swiftly to find a successor. One possibility is that Baker might turn to George Gould, who holds the number three Treasury position of Under-Secretary. Gould, another close confidante, has known Baker for years. Before joining the Treasury in November 1985, Gould was a partner at the Wall Steet firm of Wertheim and Co and formerly headed Donaldson, Lufkin and Jenrette Securities Corp. The Darman announcement came on the eve of the semi-annual meetings of the International Monetary Fund and the World Bank, where many policies Darman helped shape will be debated. He helped Baker devise the September, 1985 Plaza Agreement, when the United States, Japan, West Germany, France and Britain curbed the dollar's strength. The pact was a major turning point in U.S. Policy, ending a period of disdain for economic cooperation and intervention in currency markets. Darman also worked on some other Baker initiatives, like the Tokyo Summit agreement to intensify coordination of economic policies among the leading industrial countries and the recent Paris Agreement to stabilise currencies and stimulate global growth. These policies are collectively aimed at redressing the huge gap between Japan and West Germany's trade surpluses and the United State's massive trade deficit. That policy goal still remains a prime objective of the Reagan Administration and will not change with Darman's departure. .I 1779 .C interest 1 .T TOP DISCOUNT RATE AT UK BILL TENDER 9.5261 PCT. .W LONDON, April 3 - The top accepted rate of discount at the weekly U.K. Treasury bill tender rose to 9.5261 pct from 9.3456 pct last week. Applications at the lowest accepted price of 97.625 stg were allotted around 81 pct of the amount applied for, and applications above that price were allotted in full, the Bank of England said. A total of 100 mln stg of Treasury bills was offered for sale this week. Last week, the average rate of discount was 9.3157 pct. .I 1781 .C money-fx 1; interest 1 .T U.K. MONEY MARKET DEFICIT FURTHER REVISED UPWARD. .W LONDON, April 3 - The Bank of England said it has revised its estimate of today's shortfall to 800 mln stg from 750 mln, before taking account of 170 mln stg morning assistance. .I 1782 .C cocoa 1 .T DUTCH COCOA BEAN IMPORTS RISE IN JANUARY. .W ROTTERDAM, April 3 - Total Dutch imports of cocoa beans rose to 17,978 tonnes in January from 13,961 in January 1986, while exports fell to 1,852 tonnes from 3,111, the Central Bureau of Statistics said. Cocoa butter imports rose slightly to 1,699 tonnes from 1,507, while exports fell slightly to 6,211 from 6,293 tonnes. Imports of cocoa powder fell to 316 tonnes from 469 and exports to 5,944 from 6,106 tonnes. .I 1783 .C coffee 1 .T DUTCH GREEN COFFEE IMPORTS FALL IN JANUARY. .W HEERLEN, April 3 - Dutch green coffee imports fell to 10,430 tonnes in January from 13,506 tonnes in January 1986, and exports fell to 366 tonnes from 615, the Central Bureau of Statistics said. Imports of Colombian coffee were 2,169 tonnes (3,025 in January 1986), Brazilian 483 (3,715), Indonesian 455 (145), Guatemalan 196 (126), Cameroun 464 (560) and Ivory Coast 353 (839). .I 1784 .C money-fx 1 .T EC MINISTERS WILL DISCUSS STRENGTHENING EMS FLOAT. .W By Tony Carritt, Reuters BRUSSELS, April 3 - European Community finance ministers and central bankers meet in Belgium this weekend to discuss strengthening Europe's joint currency float amid continuing worries about turbulence on foreign exchanges. Belgian Finance Minister Mark Eyskens, who will host the informal talks, told Reuters the ministers and central bank chiefs would discuss the situation on currency markets in the light of the February agreement among leading industrialised countries to stabilise exchange rates around present levels. In an interview, Eyskens said he felt the Paris accord between the United States, Japan, West Germany, France, Britain and Canada had proved itself "more or less workable." But doubts over its effectiveness and durability have been growing since fears of a trade war between the United States and Japan over computer microchips pushed the dollar to a record low against the surging yen early this week. The talks, at the Belgian resort of Knokke, are being held to coordinate the EC's positions on monetary issues and Third World debt ahead of the Spring meetings of the International Monetary Fund and World Bank in Washington next week. The EC gathering begins tonight with a dinner but the main discussions will take place tomorrow. Continued international currency turbulence could undermine plans for reinforcing the European Monetary System, the joint float holding eight EC currencies within narrow fluctuation bands, which will feature high on the weekend agenda. Eyskens has repeatedly said that Europe needs a period of calm on world currency markets, and in particular a more stable dollar, before it can set about strengthening the EMS to make it more resilient against exchange rate swings. The EMS has been taking a battering over the last year as the falling dollar has sent funds surging into the dominant EMS currency, the West German mark, forcing ministers to undertake two major realignments of parities within nine months. In the interview, Eyskens made clear he was hoping for a wide-ranging discussion on the future of the eight-year-old EMS on the basis of proposals for bolstering it drawn up by the EC's Monetary Committee and the Committee of Central Bank Governors. The committees were asked to come up with the proposals after the last reshuffle of EMS exchange rates in January. Eyskens repeated calls for the European Currency Unit, the fledgling EC currency at the core of the system, to take over the mark's dominant role in the EMS - a proposal that has met with a cool response in West Germany. He said EC Commission President Jacques Delors would report to the meeting on problems raised by plans to liberalise capital movements fully within the 12-nation bloc by 1992, such as the need for harmonising taxes and banking controls. Eyskens said liberalisation of capital movements without strengthening the EMS would be an element of destabilisation in the Community. He said the crucial issue in the debate was whether member states were willing to push further towards the EC's goal of monetary integration on the basis of an EMS that included management of exchange rates by some kind of common institution, instead of by national central banks as at present. Plans for the creation of such an institution, foreseen by the EMS's founding fathers, have been thwarted by the reluctance of some countries, notably West Germany, to gove up their sovereignty in the monetary field. EMS development has also been held up by Britain's refusal so far to join the system's core exchange rate mechanism. .I 1786 .C reserves 1 .T ******CANADA MARCH FOREIGN RESERVES RISE 1.23 BILLION U.S. DLRS - OFFICIAL. .W Blah blah blah. .I 1787 .C jobs 1 .T U.S. MARCH JOBLESS RATE FELL TO 6.6 PCT. .W WASHINGTON, April 3 - The U.S. civilian unemployment rate fell to 6.6 pct in March from 6.7 pct in February, the Labor Department said. The number of non-farm payroll jobs rose 164,000 last month after rising a revised 236,000 in February. That was down from the previously reported 337,000 rise in February. The March unemployment rate was the lowest since March, 1980. It had remained unchanged at 6.7 pct for three straight months before the March decline. The rise in non-farm payrolls was the smallest since a decline last June of 75,000, the department said. Last month's unemployment rate was down from the 7.2 pct level in March, 1986. Growth in jobs continued in March but was slower than in recent months, with the gains concentrated in service industries. The number of goods-producing jobs fell 68,000 in March, while service-producing jobs rose 232,000 to bring the total jobs in the department's survey of businesses to 102.03 mln in March. Business and health services showed the largest gains in jobs, while manufacturing employment fell by 25,000. The average work week fell to 34.8 hours in March from 35.0 hours in February, the department said. Manufacturing hours fell to 40.9 per week from 41.2 hours in February, but overtime hours increased to 3.7 from 3.6. The department's survey of households showed the number of unemployed stood at 7.85 mln out of a work force of 119.2 mln. The number of persons working part time for economic reasons fell in March to 5.46 mln from 5.78 mln in February. The loss of factory jobs brought the March total to 19.19 mln jobs and was concentrated in automobile, electrical and electronic manufacturing. Construction employment also lowered the number of jobs in the goods-producing sector, falling by 45,000 after seasonal adjustment, the department said. Mining employment was little changed in March and has not experienced any substantial erosion since the rapid job losses in oil and gas drilling in the first two-thirds of 1986. Other service industries that increased jobs last month were finance, insurance, and real estate. .I 1788 .C money-fx 1; interest 1 .T U.K. MONEY MARKET GETS 347 MLN STG AFTERNOON HELP. .W LONDON, April 3 - The Bank of England said it has operated in the money market this afternoon, buying back bills totalling 347 mln stg. This brings the total help so far today to 517 mln stg and compares with the Bank's revised estimate of an 800 mln stg shortfall. The central bank purchased in band one 20 mln stg at 9-7/8 pct, in band two 254 mln at 9-13/16 pct, in band three 66 mln at 9-3/4 pct and in band four seven mln stg at 9-11/16 pct. .I 1791 .C acq 1 .T ALTEX SETS ACQUISITION OF COMPUTER FIRMS. .W DENVER, April 3 - Altex Industries Inc said it has agreed in principle to buy 82 pct of two privately-held affiliated computer retail companies for an undisclosed amount. Altex said the Denver-based companies had revenues of over seven mln dlrs last year. They are Integrated Management Data Systems Inc, which sells accounting software systems to the oil and gas industry, and Integrated Management Systems Micro Distribution Division Inc, which distributes micro-computer products. Altex said it expects to close the transaction, which is subject to financing, in July. .I 1792 .C ship 1 .T AUSTRALIA TUG CREWS BAR FOREIGN CONTAINER SHIPS. .W SYDNEY, April 3 - Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said. .I 1793 .C earn 1 .T STANLINE INC REGULAR DIVIDEND. .W NORWALK, Calif., April 3 - Qtly div eight cts vs eight cts in prior qtr Payable April 30 Record April 15 Company said its board intends to declare cash dividends quarterly and plans to pay a five pct stock dividend annually following the close of each fiscal year. The initial five pct stock dividend was paid December 22 to holders of record November 30. .I 1796 .C acq 1 .T TALKING POINT/SANTA FE SOUTHERN . .W By Philip Barbara, Reuters CHICAGO, April 3 - Santa Fe Southern Pacific Corp may have more difficulty combining its two railroads than fending off a possible takeover by Henley Group , which has accumulated almost a five pct stake in the real estate and railroad conglomerate, analysts said. Takeover speculation has surrounded Santa Fe since Henley disclosed its stake in the company earlier this week, but analysts and a Santa Fe official were skeptical a takeover is its intention. Analysts also said the company has strong defenses that would easily deter any suitor - one of those being its problems combining its two railroad properties, which hang in regulatory limbo. Richard Fischer of Merrill Lynch and Co Inc said that Santa Fe at December 31 had 580 mln dlrs in cash and cash equivalents, while its long-term debt to capital was just over 25 pct. "This gives them plenty of borrowing power," he said, which could be used against an unwanted suitor. Henley Group's Chairman Michael Dingman has said he wants to take major positions in undervalued natural resource companies. He also told Reuters in an interview he is seeking an acquisition of from two billion to eight billion dlrs. Santa Fe officials don't appear concerned that Henley might launch a takeover. "I would not characterize the atmosphere around here as one of concern," one Santa Fe executive said about Henley. "I think it's wrong to assume Dingman has formed a firm strategy with Santa Fe," said Mark Hassenberg, who covers Henley for DLJ Securities. Analysts say the potential of Santa Fe's land assets are likely to be realized slowly. They add that Santa Fe's efforts to merge its two railroads remain in regulatory limbo, sidetracking many of its strategic plans for the foreseeable future. These realities, they said, support the Henley Group's statement that its Santa Fe stake is only an investment. The more pressing problem facing Santa Fe is overcoming difficulties in merging its two railroads, the Atchison, Topeka and Santa Fe Railway Co and Southern Pacific Transportation Co. The merger would create the nation's second-longest railroad. Last July the Interstate Commerce Commission (ICC) denied the merger on anticompetitive grounds. The company since has granted trackage-sharing rights to four western railroads to meet the ICC's concerns and persuade it to reopen the hearings in its three-year-old struggle to merge the lines. "My guess is the commission will decide in three to six weeks whether to reopen hearings," Fischer said. "I believe they've made an effort to satisfy the ICC's objections," he said. "But in doing so they haven't pleased everyone. Before they had Burlington Northern on their side, now Burlington is opposed to the way trackage rights are set up." If the hearings are reopened, analysts predicted it will take six to nine months for everyone to have their say, and up to another year for the ICC to decide. Santa Fe is in the midst of a 50-mln-share stock buyback program begun in 1984. It has bought back 33.7 mln shares as of February 1, when it had 154.7 mln shares outstanding, a spokesman said. Among the shares repurchased were two stakes owned by Norfolk Southern, one of 3.4 mln shares bought in 1986 and another of 1.7 mln shares in 1985, one analyst said. James Voytko at Paine Webber believes Santa Fe could fight off the Henley Group with its cash and credit. Citing the share buybacks from Norfolk Southern, he said one of Santa Fe's options, if threatened, could be to buy the Henley stake. "It is indeed possible that Dingman sees this as a low-risk, opportunistic investment," Voytko said. "People who follow Santa Fe have given me values of 45 dlrs to 50 dlrs a share," said DLJ Securities' Hassenberg. "But I'm certain that in Dingman's mind, the company is worth more than that in breakup value." .I 1798 .C reserves 1 .T CANADIAN FOREIGN RESERVES SURGE IN MONTH. .W OTTAWA, April 3 - Canadian foreign reserve holdings rose 1.23 billion U.S. dlrs in March to 7.77 billion dlrs, the Finance Department said. The department said the change from February included a decrease of 258.1 mln dlrs from the repayment, at maturity, of a 1982 Swiss Franc 400 mln issue. Also included was also a 112.8 mln dlr decline from a net redemption of Canada bills. The par value of bills outstanding was 800.7 mln dlrs at March 31. This month's reserves were 4.49 billion dlrs above March, 1986's total of 3.28 billion dlrs. Reserve holdings in U.S. dlrs at end of March versus end of February were as follows. - U.S. dlrs 5.98 billion vs 4.47 billion, - other foreign currencies 37.1 mln vs 319.9 mln, - gold 874.0 mln vs 864.1 mln - special drawing rights 191.8 mln vs 188.6 mln, - IMF Reserves 689.7 mln vs 705.7 mln. .I 1799 .C grain 1 .T JAPAN STUDY URGES FOREIGN ACCESS TO FARM MARKETS. .W TOKYO, April 3 - Japan should increase foreign access to its farm products market, while encouraging further development of domestic agriculture, a government report said. The white paper on agriculture for the year ended March 31 said active participation in writing world farm trade rules at the next round of General Agreement on Tariffs and Trade (GATT) talks will help prepare Japan to improve access. Agriculture Ministry sources said the paper marked an easing in Japan's tough position on agricultural imports which stressed the need for strict controls on some products to maintain self-sufficiency in food. Japan now produces only 30 pct of its annual grain needs, down from 61 pct some 20 years ago, official figures show. The paper said Japanese agriculture has been slow to improve productivity and demand/supply imbalances. The relative shortage of farmland in Japan is mainly responsible for higher domestic prices, it said. The strong yen has meant lower input material prices but has also resulted in higher agricultural imports which has worsened working conditions among part-time farmers, the paper said. This could make it difficult to improve the industry's structure, the paper said. To solve these problems and to reduce farm product prices to more reasonable levels, Japan should try to restructure the the agricultural sector to improve productivity and make it self-supporting, it said. .I 1800 .C earn 1 .T HILTON 1ST QTR EARNINGS UP ABOUT 37 PCT. .W BEVERLY HILLS, Calif., April 3 - Hilton Hotels Corp said its first quarter net income rose 37 pct, paced by strength in both hotels and gaming. Based on preliminary results, the company said, net income rose to about 24 mln dlrs, or 96 cts a share, from 17.4 mln dlrs, or 70 cts a share, in 1986's initial three months. .I 1803 .C acq 1 .T PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW. .W BRISBANE, April 3 - said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd on March 31 to be too low in view of the group*hK!UiIe and prospects. Pioneer recommended in a statement that shareholders retain their stock, pending the board's response once it receives full details of the CSR offer. .I 1805 .C alum 1 .T SURALCO OFFERS CASH FOR WORKERS TO LEAVE. .W THE HAGUE, April 3 - The U.S.-owned (SURALCO) offered workers a lump sum and up to five months' wages to quit the firm because jungle-based rebels have disrupted bauxite mining and alumina smelting, ANP said. The Dutch news agency said SURALCO, a subsidiary of the Aluminum Company of America(ALCOA) wanted to reduce its work force because it had been hard hit by guerrilla attacks that cut power lines to the area in January. All bauxite mining at Moengo ceased four months ago and SURALCO's Paranam alumina smelter is using imported bauxite. .I 1808 .C acq 1 .T ******GENERAL PARTNERS WILLING TO PAY 110 DLRS/SHARE FOR GENCORP. .W Blah blah blah. .I 1809 .C money-fx 1; interest 1 .T U.K. MONEY MARKET RECEIVES 205 MLN STG LATE HELP. .W LONDON, April 3 - The Bank of England said it has provided around 205 mln stg late assistance to the market, bringing the total help today to 722 mln which compares with the Bank's revised deficit forecast of 800 mln stg. .I 1810 .C money-supply 1 .T BELGIAN MONEY SUPPLY RISES IN FOURTH QUARTER 1986. .W BRUSSELS, April 3 - Belgian total money stock rose to 1,140.4 billion francs at the end of 1986 from 1,115.4 billion at the end of the third quarter of last year and 1,055.0 billion at the end of 1985, Belgian National Bank figures showed. Paper money rose to 404.1 billion francs from 394.1 billion and 383.5 billion respectively, other forms of privately held money to 679.5 billion from 652.7 billion and 616.0 billion. Money held by the public authorities fell to 56.8 billion francs from 68.6 billion at the end of the previous quarter but was above the 55.5 billion at the end of 1985, the bank said. The government does not set money supply targets, arguing they are inappropriate to a small economy with major trading and monetary links with much larger trading countries. .I 1811 .C money-fx 1 .T STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE. .W BONN, April 3 - West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next week's International Monetary Fund meeting in Washington that: "The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments." Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germany's exports. He said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. "No-one would benefit if, after years of over-valuation, the U.S. Dollar fell into the other extreme, that is, strong under-valuation," he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord, Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add. .I 1812 .C coffee 1 .T BRAZILIAN COFFEE RAINFALL. .W SAO PAULO, APRIL 3 - THE FOLLOWING RAINFALL WAS RECORDDD IN THE AREAS OVER THE PAST 24 HOURS PARANA STATE UMUARAMA 10.6 MILLIMETRES, PARANAVAI 12.2 MM, LONDRINA 6.0 MM, MARINGA 8.0 MM. SAO PAULO STATE: PRESIDENZE PRUDENTE 1.0 MM, VOTUPORANGA 26.0 MM, FRANCA NIL, CATANDUVA 0.1 MM, SAO CARLOS NIL, SAO SIMAO NIL. .I 1815 .C interest 1 .T AVERAGE DISCOUNT RATE AT UK BILL TENDER 9.5195 PCT. .W LONDON, April 3 - The average rate of discount at today's U.K. Treasury bill tender rose to 9.5195 pct from 9.3157 pct last week, the Bank of England said. This week's 100 mln stg offer of 91-day bills met applications of 327 mln stg, the bank said. Applications for bills dated Monday to Friday at the top accepted rate of discount of 9.5261 pct were allotted about 81 pct. Next week 100 mln stg of Treasury bills will be offered, replacing 100 mln stg of maturities. .I 1817 .C trade 1 .T IMF, WORLD BANK TO MEET AMID NEW INFLATION FEARS. .W By Alver Carlson, Reuters WASHINGTON, April 3 - Amid new concerns about inflation, interest rate increases and trade confrontations, finance ministers and central bankers meet next week to discuss a deteriorating global debt and economic situation. The meetings, under the auspices of the International Monetary Fund and World Bank, come as interest rates are turning higher and the already-weak dollar has sunk further, upsetting bond and stock markets. Uncertainty is growing about the vitality of the global economy and whether the heavily-indebted countries can continue to carry the burden of their growing debt without vast new assistance. Monetary and diplomatic sources said there are no signs any new debt initiative of the sort that Treasury Secretary James Baker unveiled 18 months ago in Seoul is in the works. The strategy has drawn a serious challenge from Brazil, which suspended interest payments on 67 billion dlrs of commercial bank debt last month. The Banks have responded by laying the groundwork for writing down Brazilian loans. Separately, French Prime Minister Jacques Chirac, in a visit earlier this week with President Reagan, sounded out the administration on a plan to funnel worldwide grain surpluses to the very poorest states. The French plan is certain to be discussed by the ministers in detail during next week's meetings and will undoubtedly be embraced by the developing countries. "There's interest on the part of some countries for looking at the support of the special problems of the very poorest countries, because their position is so extreme," a Reagan administration official said. He suggested Washington was open to disussing the issue. The meetings will also assess the success of the Baker debt initiative, which called for new funding to help debtor countries grow out of their problems. The largest industrial countries have been attempting to coordinate economic policy in the hope of controlling the decline of the dollar, U.S. trade and budget deficits and other problems. At the same time, the industrial countries see little evidence of a strengthening of economic activity and the Fund forecasts they will grow 2.5 pct. The United States sees 3.2 pct growth for itself, continuing its expansion for a fifth year, and has asked other industrial countries to stimulate their economies. These issues directly affect the debt problem and the ability of the debtor countries to grow out of their difficulties. In recent years, U.S. markets have absorbed the exports of developing country, allowing them to earn critical foreign exchange. But the United States wants to cut its trade deficit, running at a record 169.8 billion dlrs, and is pressing others to import more from developing countries. The discussions, from April six to 10, will be wide-ranging, touching everything from interest rates to the impact of development loans on the environment, according to monetary sources. The talks will include an examination of trade protectionist pressures in the wake of a decision by the Reagan administration to place some 300 mln dlrs in tariffs on microchip products from Japan, the sources said. The move accelerated the dollar's decline as financial markets grew alarmed that trade war was in the offing. There is concern that the action, prompted by U.S. charges that Japan has been selling computer chip products below fair market value and has kept its own market closed to imports, further undermining the international trading system. At the same time, the ministers will discuss the fundamental price weakness in basic commodities, the export mainstay of many developing countries. The so-called Group of Five industrial countries -- the United States, Japan, West Germany, France and Britain -- will gather for the first time since their February talks in Paris, where they agreed to keep the dollar from sliding further. The Five will be joined later by Italy and Canada for further debate on economic policy coordination. As part of the Paris accord, surplus countries such as Japan agreed to stimulate their economies, while America said it would reduce its federal budget deficit. Other major issues of the meetings include a U.S. bid to to have a larger say in approving loans of the Inter-American Development Bank, strengthening the link between loans and economic policy changes in debtor nations. Washington is also pressing the World Bank to take more account of the environment when making loan for dams and other projects. The new head of the Bank, Barber Conable, has said this issue is being reviewed and will be part of a reorganization plan for the Bank, now being prepared. .I 1818 .C ship 1; grain 1 .T LONDON FREIGHT MARKET FEATURES USSR TIMECHARTERS. .W LONDON, April 3 - Active timecharter fixing by Soviet operators to cover USSR grain imports featured the freight market, ship brokers said. At least two fixtures were reported on Soviet account to lift EC grain, with a 22,000 tonner booked from Tilbury for a voyage via lower Baltic Sea and redelivery passing Skaw at 4,000 dlrs daily and a 27,000 tonner from Ceuta for a voyage via the U.K. And redelivery Skaw-Cape Passero at 4,500 dlrs daily. The Soviets also secured a 34,000 tonner from Gibraltar for a trans-Atlantic round trip at 4,500 dlrs daily and a 61,000 tonner for similar business at 6,750 dlrs daily. Brokers said several other fixtures were also thought to be connected with Soviet grain, including a 69,000 tonner from Taranto for five to seven months at 6,500 dlrs daily. Similar fixing was reported yesterday at 6,000 dlrs. Other timecharter fixing included a 14,000 tonner from Indonesia to the U.S. Gulf at 2,800 dlrs daily and a combined carrier of 75,000 tonnes dw from the U.S. Gulf to Italy at 9,000 dlrs daily. Severel vessels were booked from Antwerp-Hamburg range, including a 61,000 tonner bound for Singapore-Japan at 7,500 dlrs daily and a 16,000 tonner destined for west coast India at 5,000 dlrs. Grain fixing was much quieter out of the U.S. Gulf, with no fresh business seen on the significant routes to the Continent or Japan, although tonnage was secured for at least five small corn cargoes from the Gulf to Jamaica at between 21 and 25 dlrs. Wheat from the River Plate and Buenos Aires to Sri Lanka received 26 dlrs. Market talk suggested 11 dlrs had been paid for grain from the U.S. North Pacific to Japan but no confirmation was available. Fairly active grain fixing emerged out of the Continent, however, with maize covered from Nantes to Egypt at 15 dlrs, and bagged flour from Greece to China at 27 dlrs. Barley cargoes were arranged from Immingham to the Red Sea at 17.25 dlrs and from Foynes to Jeddah at 17.25 dlrs. .I 1820 .C nat-gas 1 .T NERCO TO ACQUIRE INTEREST IN GAS FILED. .W PORTLAND, Ore., April 3 - Nerco Inc said it has agreed to acquire a 47 pct working interest in the Broussard Gas Field in southern Louisiana from privately-owned for about 22.5 mln dlrs in cash. Nerco said the interest being purchased will give it estimated proven oil and gas reserves equal to six billion cubic feet of natural gas. The property includes six gas wells, one oil well two undeveloped drilling locations, a central production facility and a gas gathering system. Nerco is 90 pct owned by PacifiCorp . .I 1821 .C acq 1 .T CANRAD ACQUIRES MEASUREMENT SYSTEMS. .W NEWARK, N.J., April 3 - Canrad Inc said it acquired the Measurement Systems Division of for an undisclosed amount of cash. Canrad said the acquisition is expected to increase its annual revenues by about 10 mln dlrs. .I 1822 .C acq 1 .T PANTERA'S ACQUIRES 10 RESTAURANTS. .W ST. LOUIS, April 3 - Pantera's Corp said it closed on its agreement to acquire ten pizza restaurant locations in southeastern Colorado. It said the purchase price was 1,250,000 dlrs, which was paid by cash and stock. .I 1826 .C copper 1 .T NORANDA SAYS FIRE CAUSED 10 MLN DLRS IN DAMAGE. .W Murdochville, Quebec, April 3 - said a copper mine fire that killed one miner and trapped 44 others for nearly a day caused an estimated 10 mln Canadian dlrs in damage. The fire, which started Wednesday and burned for more than 24 hours, destroyed the mine's three-year-old conveyor system, officials said. Michel Lefebvre, vice president of operations, said Noranda will operate the mine at about one third of its normal 72,000 short ton annual finished capacity, using above ground reserves, until it decides whether to keep the mine open. "The events we sustained yesterday and the day before are a very serious setback for Gaspe Mines operations," Lefebvre said. Gaspe Mines is the name of the Noranda division that operates the Murdochville mine. He said it would take four or five months to bring operations up to full capacity if the company decides to do so, adding that he believes there is a good chance Noranda will fully reopen the mine. .I 1827 .C acq 1 .T GENERAL PARTNERS TO RAISE BID FOR GENCORP . .W AKRON, Ohio, April 3 - said it was prepared to raise its bid for GenCorp Inc to 110 dlrs cash per share from 100 dlrs per share. In a letter from General Partners to A. William Reynolds, chairman and chief executive officer of GenCorp, the company stated that if GenCorp could prove the company was worth more, General Partners would be willing to consider an even higher price. General Partners also left open the possibility of an alternative to an all-cash offer. General Partners told GenCorp if it believed shareholders would be better served by a smaller cash price with a security representing a continuing long-term interest in GenCorp's prospects, it would be willing to discuss an alternative. Specifically, General Partners said it was prepared to discuss an acquisition giving shareholders a continuing interest in Aerojet General, a valued business of GenCorp. .I 1829 .C earn 1 .T MANGOOD CORP YEAR OPER LOSS. .W FORT ATKINSON, WIS., April 3 - Oper shr loss 6.07 vs loss 7.64 dlrs Oper net loss 6,235,000 vs loss 4,801,000 Sales 70.1 mln vs 60.6 mln Avg shrs 1,028,000 vs 629,000 NOTE: 1986 earnings exclude a gain on restructuring of 3,143,000 dlrs, or 3.01 dlrs a share .I 1830 .C copper 1 .T NORANDA COPPER MINE FIRE CAUSED HEAVY DAMAGE. .W MURDOCHVILLE, Quebec, April 3 - said a copper mine fire that killed one miner and trapped 44 others for nearly a day caused an estimated 10 mln Canadian dlrs in damage. The fire, which started Wednesday and burned for more than 24 hours, destroyed the mine's three-year-old conveyor system, officials said. Michel Lefebvre, vice president of operations, said Noranda will operate the mine at about one-third of its normal 72,000 metric ton annual finished capacity, using above ground reserves, until it decides whether to keep the mine open. "The events we sustained yesterday and the day before are a very serious setback for Gaspe Mines operations," Lefebvre said. Gaspe Mines is the name of the Noranda division that operates the Murdochville mine. He said it would take four or five months to bring operations up to full capacity if the company decides to do so, adding that he believes there is a good chance Noranda will fully reopen the mine. .I 1831 .C earn 1 .T FIRST QTR NET. .W ENCINO, Calif., April 3 - Net 90,501 vs 56,960 Assets 42.0 mln vs 34.9 mln Deposits 35.9 mln Loans 27.6 mln vs 23.9 mln NOTE: earnings per share and 1985 deposits figure not supplied by company. .I 1835 .C acq 1 .T R.R. DONNELLY TO SELL CABLE SYSTEM. .W CHICAGO, April 3 - R.R. Donnelly and Sons Co said it reached an agreement with Adams-Russell Co Inc to sell Adams its Rockford, Ill., cable system for an undisclosed price. R.R. Donnelly said it expects the deal to close in about 120 days, subject to regulatory approvals and other conditions. The cable system serves about 51,000 subscribers in the communities of Rockford, Loves Park, Machesney Park, Cherry Valley, Morristown and Winnebago County, Ill., R.R. Donnelly said. .I 1838 .C earn 1 .T BIOMET INC 3RD QTR FEB 28 NET. .W WARSAW, Ind., April 3 - Shr 18 cts vs 13 cts Net 2,133,000 vs 1,384,000 Revs 14.1 mln vs 11.7 mln Nine mths Shr 49 cts vs 36 cts Net 5,657,000 vs 3,728,000 Revs 39.7 mln vs 31.8 mln .I 1841 .C grain 1; corn 1 .T SPAIN AGREES SALE OF CORN TO GREECE. .W MADRID, April 3 - Greece has agreed to buy between 27,000 and 33,000 tonnes of Spanish corn, a spokesman for Cargill's Spanish unit Compania Industrial y de Abastecimiento S.A. (CINDASA) said. He told Reuters the sale price was around 28.95 pesetas per kilo but that the final quantity and delivery date has not yet been set. The corn will be shipped in the coming days from Valencia. He said CINDASA will also ship 6,000 to 7,000 tonnes of Spanish corn to Italy in the second half of this month. The CINDASA spokesman said other corn shipments this month will include between 15,000 and 30,000 tonnes bound initially for Rotterdam and Ghent and destined for unspecified northern European countries. He said shipments of 35,000 to 50,000 tonnes of low specific gravity barley were also expected this month and added that Greece, the Netherlands, Ireland and Belgium were considering imports of Spanish flour for milling. Market sources said the corn exports, the absence of imports from the rest of the EC and the delay in shipments of corn from the U.S. Had pushed domestic corn prices up by around 0.25 pesetas a kilo today compared with yesterday. .I 1843 .C earn 1 .T EAC INDUSTRIES INC 4TH QTR OPER LOSS. .W CHICAGO, April 3 - Period ended Jan 31 Oper shr loss 66 cts vs loss 1.29 dlrs Oper net loss 1,309,000 vs loss 2,522,000 Sales 25.1 mln vs 19.9 mln Year Oper shr loss 65 cts vs loss 97 cts Oper net loss 1,287,000 vs loss 1,882,000 Sales 113.4 mln vs 76.6 mln NOTE: Earnings exclude a loss on sale of discontinued operations of 17,000 dlrs, or one ct a share vs a gain of 1,383,000 dlrs, or 70 cts a share in the quarter and gains of 300,000 dlrs, or 15 cts a share vs 1,941,000 dlrs, or 1.00 dlr a share for the year .I 1844 .C reserves 1 .T BUNDESBANK GROSS RESERVES RISE AT MARCH CLOSE. .W FRANKFURT, April 3 - The Bundesbank's gross currency reserves rose 300 mln marks in the last week of March to 104.9 billion marks, the Bundesbank said in a statement. At the same time its foreign liabilities rose 100 mln to 22.8 billion, producing a rise in net reserves of 200 mln to 82.2 billion on March 31. The Bundesbank provided banks with liquidity in the fourth March week by disbursing funds in the money market via government-owned banks. Banks took up the Bundesbank's standing offer of treasury bills to place excess liquidity. Banks received more liquidity through routine month-end payments by public authorities as well as expansionary market factors than was lost through the 2.3 billion mark rise in cash in circulation to 122.3 billion, the Bundesbank said. But banks had to draw heavily on the Lombard emergency financing facility due to month-end tightness, borrowing 5.3 billion marks. Overall, banks' holdings at the Bundesbank rose 10.2 billion marks to 58.5 billion at the end of the month, averaging 50.9 billion in the whole of March. The minimum reserve requirement for March, before deduction of banks' cash holdings, was set at 61 billion marks. Public authorities' net holdings at the Bundesbank fell to 2.2 billion marks in the last March week from 4.4 billion the week before. The federal states' holdings fell 2.6 billion to 2.4 billion. The federal government's holdings rose 700 mln marks to 5.1 billion. .I 1846 .C dlr 1; money-fx 1; dmk 1 .T TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES. .W ANKARA, April 3 - Turkey's Central Bank set a lira/dollar rate for April 6 of 781.95/785.86 to the dollar, up from 782.50/786.41. It set a lira/D-mark rate of 430.15/432.30 to the mark, down from 428.30/430.44. .I 1847 .C earn 1 .T WESSANEN FORESEES STRONG PROFIT GROWTH. .W AMSTERDAM, April 3 - Dutch dairy and general foods manufacturer Koninklijke Wessanen NV , said it is planning further world-wide acquisitions and forsees strong profit growth over the next 10 years. Company chairman Gerrit van Driel told journalists at the presentation of Wessanen's 1986 report he already expected 1987 first quarter profits to show an increase. The company last month reported a 16 pct increase in 1986 net profits to 72.7 mln guilders, after 62.3 mln in 1985. This was achieved despite a 25 pct drop in the dollar's guilder value, van Driel said. Van Driel said profits would have been nine mln guilders higher if the US currency had remained at its average 1985 level of 3.20 guilders. Turnover, at 3.7 billion guilders in 1986, was 450 mln guilders down because of the lower dollar and lower raw material prices. Total 1985 turnover was 4.2 billion guilders. US activities accounted for 34 pct of 1986 turnover, compared with 22 pct in 1982. Wessanen now has 15 separate businesses in the US out of a total of 62 world-wide. Van Driel said the company would continue an active takeover policy in the US, but would be wary about paying more than its current price/earnings ratio of 17 times net profit. He added that Wessanen teams were seeking acquisition possibilities in Brazil, Taiwan, Thailand and China. He said the company had an ample cashflow of 100 mln guilders and would if necessary make new share issues. Van Driel said he expected a 1987 US turnover of 700 mln dlrs. He said and , taken over late last year, have a combined annual turnover of 126 mln dlrs which was not included in the 1986 account. All sectors saw strong growth in 1986, resulting in a 13 pct increase in operating income to 120 mln guilders. Key to this growth was the successful introduction of new products, which were greatly enhanced by a number of consumer-oriented US acquisitions, van Driel said. Consumer products represented 50 pct of total 1986 turnover, compared with 35 pct in 1982, van Driel said. The company, which is already listed on the London, Zurich, Basle and Geneva stock exchanges as well as Amsterdam, aims to be quoted in Frankfurt and Dusseldorf in May, van Driel said. Van Driel stressed that while these listings would not be accompanied by new share issues, they provided easy vehicles for the company to raise capital for future expansion. He estimated that 33 pct of the company's shares were in foreign hands. The company's 1986 US turnover of about 750 mln dlrs made a listing on one of the New York exchanges a logical next step, van Driel said without elaborating. Despite EC dairy restrictions Wessanen, which produces around 10 pct of all Dutch cheese, saw good growth prospects for its dairy sector within Europe, van Driel said. .I 1849 .C interest 1 .T FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 3 - The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-273 days 5.00 pct 5.00 pct 30-89 days 274-294 days 5.92 pct 5.83 pct 90-100 days 295-344 days 5.00 pct 5.00 pct 101-181 days 345-360 days 5.93 pct 5.82 pct 182-195 days 5.00 pct 196-274 days 5.90 pct 275-295 days 5.00 pct 296-360 days .I 1851 .C interest 1 .T MONEY RATES - INTERNATIONAL SUMMARY - APR 3. .W U.S. Fed funds 5-15/16 Broker loan 7.50-7.25 30 60 90 T-bills 5.40/38 5.40/38 5.44/43 Cds dir 5.95 6.00 6.00 Comm paper dir 6.15 6.15 6.09 INTERNATIONAL CALL 1 MONTH 3 MONTH Ldn 10 9-7/8 10 9-15/16 10 9-7/8Fft 3.60/70 3.80/90 3.85/95 Par unav unav unav Zur 7/8 1-1/8 3-1/8 1/4 3-1/2 5/8 Ams 5-5/16 7/16 5-3/8 1/2 5-3/8 1/2 Tok 3.7500 8125 3.8750 9375 4.0000 0625 .I 1852 .C acq 1 .T K MART SELLING KRESGE TO MCCRORY. .W TROY, MICH., April 3 - K mart Corp said it agreed to sell most of the U.S. Kresge and Jupiter stores to McCrory Corp, a subsidiary of privately held Rapid American Corp. It said the agreement covers 76 stores in 21 states including inventory and fixtures. The price depends on the amount of the inventory that will be in the stores on the closing date. K mart said it will continue to operate the stores until early June, when McCrory will take over with no interruption of service. The newly acquired Kresge and Jupiter stores will be renamed McCrory 5 and 10. McCrory currently operates 1,250 stores in 38 states. .I 1854 .C earn 1 .T TANDY 3RD QUARTER REVENUES UP 12 PCT. .W FORT WORTH, Texas, April 3 - Tandy Corp said consolidated sales and operating revenues for the third quarter, ended March 31, totaled nearly 776.0 mln dlrs, up 12 pct from 693.4 mln dlrs last year. The company said third quarter earnings will be released in the latter part of April. Tandy said March sales and oprating revenues totaled 164.4 mln dlrs, up 11 pct from March 1986's 238.8 mln dlrs. It said U.S. retail operations revenues rose to 225.8 mln dlrs last month from 202.7 mln dlrs a year earlier. Sales of U.S. stores in existence more than one year increased 10 pct. .I 1855 .C earn 1 .T PHILIP MORRIS UP ON RECOMMENDATIONS. .W NEW YORK, April 3 - The stock of Philip Morris Cos rose today following recommendations by First Boston Corp and Morgan Stanley and Co, traders said. Philip Morris gained 1-3/4 to 88-1/4. First Boston's analyst was unavailable for comment. Morgan Stanley's David Hill said he just assumed coverage of Philip Morris and placed it on his recommended list becasue of its attractive earnings growth and because the stock is selling at a discount to the market based on Morgan's figures. Hill expects Morris to earn 7.75 dlrs a share this year and 9.50 dlrs in 1988. In 1986, Morris earned 6.20 dlrs a share. .I 1856 .C wheat 1; grain 1 .T PAKISTAN NOT SEEN AS MAJOR WHEAT EXPORTER. .W ISLAMABAD, April 3 - Pakistan is not emerging as a major wheat exporter as world market prospects are not good enough, Sartaj Aziz, Special Assistant on Food and Agriculture to the Pakistani Prime Minister, said in an interview. No exports are planned for the next 12 months or so and plans last year to sell one mln tonnes to Iran came to nothing because they could not agree a price, he said. Aziz forecast that Pakistan may have exportable surpluses of one mln tonnes or a half mln tonnes over the next few harvests in years when the weather is favourable. The government does not wish to increase output much above this because of low world prices, and the land would be better used for other crops. Aziz said the Pakistani government does not want area sown to wheat to increase from the current seven mln hectares. Some 10 pct of that area which gives low yields could be switched to more profitable crops such as oilseeds. The aim is to concentrate on raising yields from the current 1.8 to 1.9 tonnes per ha to at least 2.5 tonnes per ha over the next five to seven years, he said. Aziz said the current 1986/87 crop, harvesting of which is just beginning, is expected to yield around a record 14.5 mln tonnes. This compares with a target of 14.7 mln and last year's yield of 14.0 mln. He said rains some six weeks ago helped the crop but more recent rains reduced prospects slightly. The long-term wheat production target is for some 17 mln tonnes by mid-1993, taking into account Pakistan's annual population growth rate of more than three pct. Current consumption is some 12.5 mln tonnes. The current wheat reserve is 2.5 mln tonnes, Aziz said. This compares with a minimum reserve commitment of one mln tonnes, which Pakistan will maintain at all costs, and a "strategic reserve" target of two mln tonnes. Despite the fact that stocks are a half-mln tonnes over target, the surplus will not be exported at present, he said. The government wants to keep an extra "safety margin" until it sees what effect the abolition of a 44-year-old wheat rationing system will have on domestic consumption. New exports will be considered only in about a year's time when the 1987/88 crop can be gauged as well, he said. The new domestic policy, introduced on March 15, is for the government to supply unlimited quantities of wheat at two rupees per kilo. With other costs this means a price in Pakistani markets of between 2.30 and 2.50 rupees per kilo. Under the old system, introduced during World War Two and due to be phased out by April 15, some 50 mln ration cards were issued enabling poor people to buy wheat cheaply. Aziz said following the introduction of a government support price in the 1970s the system become so corrupted that only 20 to 25 pct of subsidised wheat was actually reaching the consumer, the rest being diverted illicitly to the mills. The ration system had also not had the stabilising effect on the internal wheat market that was intended, Aziz said. Prices have already begun to fall with the introduction of the new system. The wheat price in Karachi, the most expensive Pakistani city, had dropped from 3.11 rupees per kilo on March 1 to 2.85 rupees on March 30. Aziz said he does not expect the change in system to have a major effect on total consumption, but it may encourage better use of side-products such as bran. .I 1857 .C acq 1 .T KLEER-VU INDUSTRIES TO SELL COSMETICS UNIT. .W NEW YORK, APril 3 - said the company's board authorized the sale of its Neslemur Co, its cosmetic and toiletries company. The company said it is evaluating two separate proposals and will complete the sale within 10 days. .I 1858 .C acq 1 .T MEMORY PROTECTION COMPLETES ACQUISITION. .W NEW YORK, April 3 - Memory Protection Devices Inc said it completed its acquisition of the assets and liabilities of Bogen, a division of , for 9,200,000 dlrs in cash. Under the newly-structured company, Memory said it expects to report consolidated sales of 18 mln dlrs to 20 mln dlrs and should be profitable before allowing for extraordinary items related to the acquisition. .I 1859 .C acq 1 .T DU PONT
TO SELL CLEVELAND PLANT. .W WILMINGTON, Del., April 3 - Du Pont Co said it agreed to sell its Cleveland chemical plant, the oldest site currently operated by the company, to two employees. Terms were not disclosed. Closing is expected in the second quarter, following approval of definitive agreements. Products made at the plant represent less than 1/10 of one pct of Du Pont's annual sales, it said. Quilon chrome complexes and Volan bonding agents will be supplied by the plant to Du Pont under contract. Established in 1866, the plant was acquired by Du Pont in 1928. The plant no longer fits the company's long-term strategy, Du Pont said .I 1860 .C interest 1 .T SPAIN RAISES CALL MONEY RATE TO 14.5 PCT. .W MADRID, April 3 - The Bank of Spain said it raised its rate for overnight call money to 14.5 pct from 14 pct with immediate effect at today's daily auction for assistance funds. The move followed comments yesterday by central bank governor Mariano Rubio, who said money supply growth was too fast. The bank said later that it was leaving its rate for special assistance funds from its second window unchanged at 16 pct, surprising operators who had expected an increase there too. .I 1862 .C earn 1 .T FEDERAL CO 3RD QTR FEB 28 NET. .W MEMPHIS, April 3 - Shr 1.00 dlr vs 34 cts Net 16.9 mln vs 5,696,000 Revs 371.3 mln vs 303.2 mln Avg shrs 16.9 mln vs 16.3 mln Nine mths Shr 3.55 dlrs vs 1.66 dlrs Net 59.3 mln vs 27.1 mln Revs 1.02 billion vs 912.8 mln Avg shrs 16.7 mln vs 16.3 mln .I 1866 .C earn 1 .T FLOWERS INDUSTRIES INC HIKES PAYOUT. .W THOMASVILLE, Ga., April 3 - Qtly div 14-1/2 cts vs 14 cts prior Pay May 4 Record April 17 .I 1867 .C earn 1 .T FINE ART ACQUISITIONS LTD 4TH QTR NET. .W NEW YORK, April 3 - Shr three cts vs three cts Net 141,224 vs 118,192 Sales 5,849,695 vs 3,717,794 Avg shrs 4,975,000 vs 4,925,000 Year Shr 15 cts vs 10 cts Net 720,126 vs 474,879 Sales 18.2 mln vs 11.5 mln Avg shrs 4,959,932 vs 4,902,778 NOTE: 1985 year net includes gain of 58,000 dlrs, or one cent a share, from tax loss carryforward .I 1869 .C acq 1 .T GERBER SETS DEADLINE FOR UNIT'S BUYOUT. .W FREMONT, MICH., April 3 - Gerber Products Co said it has given management of its CWT Inc trucking subsidiary 60 days to pursue a leveraged buyout of the subsidiary. It said CWT Inc, which has operations in the Midwest and Southeast, has annual revenues of approximately 135 mln dlrs. .I 1870 .C earn 1 .T 1ST QTR NET. .W MYRTLE BEACH, S.C., April 3 - Shr 31 cts vs 31 cts Net 226,000 vs 173,000 Assets 73.1 mln vs 62.5 mln Deposits 54.6 mln vs 51.5 mln NOTE: earnings per share for 1987 affected by issuance of 166,750 shares of common stock in December 1986. .I 1873 .C earn 1 .T TSR INC 3RD QTR FEB 28 NET. .W HAUPPAUGE, N.Y., April 3 - Shr seven cts vs four cts Net 161,000 vs 107,000 Revs 5,852,000 vs 4,794,000 Nine mths Shr 23 cts vs 24 cts Net 553,000 vs 610,000 Revs 18.2 mln vs 14.2 mln .I 1874 .C acq 1 .T TIME IN TALKS ON CABLE NEWS CONSORTIUM. .W NEW YORK, April 3 - N.J. Nicholas Jr., president and chief operating officer of Time Inc, told security analysts the company is now engaged in talks to join a consortium of cable companies that will invest in Cable News Network. Nicholas declined to give any details, but said an announcement might be ready in a few days. He also declined to say whether the investment would be made by Time Inc or American Television and Communications Corp, a public company in which Time owns a majority stake. Cable News Network is owned by Turner Broadcasting System . .I 1876 .C tea 1 .T ABNORMAL RADIATION FOUND IN SOVIET TEA/HAZELNUTS. .W MOSCOW, April 3 - Abnormally high levels of radiation were found in Soviet tea and hazelnuts more than nine months after the Chernobyl nuclear accident, West German residents in Moscow were advised this week. In a letter to the West German community here, Ambassador Joerg Kastl said laboratory tests on food samples bought in Moscow in February had shown elevated levels of caesium-134 and -137 in tea from Azerbaijan and Ukrainian hazelnuts. Other food samples sent for testing at Cologne University, including honey, fruit, vegetables, pork, milk and butter, were found to be free of radiation, it said. Data in the letter showed the tea and hazelnuts contained caesium levels far in excess of ceilings recommended by the United Nations Food and Agriculture Organisation (FAO). The letter said people who had consumed the tea faced no particular health danger as most of the caesium remained in the tea leaves, but it warned against eating the hazelnuts. The products sent for testing were bought in state shops and private farmers' markets in Moscow, it added. Other Western embassies in Moscow said they had discontinued laboratory testing of Soviet food late last year because no abnormal radiation levels were detected. "We didn't find anything so we stopped doing it," a U.S. Embassy spokesman said. A British spokesman said radiation-monitoring equipment remained in the embassy waiting room for British residents in Moscow who wanted to check their food, but laboratory tests had not been conducted for several months. "Earlier we sent some food back to Britain as a precautionary measure, but we stopped in the absence of any alarming signals," he said. "If the tests had shown abnormal readings, they would have been resumed." .I 1877 .C interest 1 .T SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 3 - The Student Loan Marketing Association said its rates on short-term discount notes were as follows: MATURITY NEW RATE OLD RATE MATURITY 5-14 days 5.65 pct 5.60 pct 5-14 days 15-78 days 5.00 pct 5.00 pct 15-81 days 79-85 days 5.83 pct 5.75 pct 82-88 days 89-360 days 5.00 pct 5.00 pct 89-174 days 5.85 pct 175-180 days 5.00 pct 181-360 days .I 1879 .C copper 1 .T CYPRUS LOWERS COPPER PRICE ONE CT TO 66 CTS. .W DENVER, April 3 - Cyprus Minerals Company said it is decreasing its electrolytic copper cathode price by one cent to 66.0 cents a pound, effective immediately. .I 1881 .C interest 1 .T FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES. .W WASHINGTON, April 3 - The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY RATE OLD RATE MATURITY 31 days 5.95 pct 6.00 pct 32 days .I 1883 .C earn 1 .T MAVERICK RESTAURANT CORP 4TH QTR LOSS. .W WICHITA, Kan., April 3 - Ended Jan 31 Shr loss 50 cts vs loss one ct Net loss 2,475,739 vs loss 68,691 Revs 3,689,770 vs 3,292,733 Year Shr loss 50 cts vs loss two cts net loss 2,472,582 vs loss 112,936 Revs 14.8 mln vs 13.2 mln NOTE: Current periods include charge of 2.25 mln dlrs or 45 cts for restaurant closings. .I 1884 .C earn 1 .T GRAPHIC MEDIA INC YEAR NET. .W FAIRFIELD, N.J., April 3 - Ended Jan 31 Shr nine cts vs eight cts Net 246,000 vs 369,000 Revs 20.4 mln vs 11.2 mln Avg shrs 2,123,000 vs 1,882,000 NOTE: 1985 restated. .I 1886 .C earn 1 .T TIME 1987 EARNINGS MAY BE 4.25 DLRS SHARE. .W NEW YORK, April 3 - Time Inc's chief financial officer, Thayer Bigelow, told security analysts the company is "comfortable" with Wall Street estimates that 1987 earnings will be in a range of 3.75 dlrs to 4.25 dlrs per share. In 1986, Time reported earnings of 5.95 dlrs per share, including a number of special items. Bigelow said in adjusting the 1986 results for the special items and also removing the earnings of American Television and Communications Corp , Time earned 2.35 dlrs per share in 1986. Turner Broadcasting System Inc said the investment by the cable consortium would be in Turner Broadcasting, not directly in CNN. The consortium would infuse up to 550 mln dlrs in Turner Broadcasting in return for a 35 pct equity interest. Ted Turner, Chairman, would retain a 51 pct interest, a Turner Broadcasting spokesman said. Bigelow said the company is continuing its previously announced 10 mln share repurchase program and has bought back 4.1 mln of its own shares. He said 700,000 shares were purchased in the first quarter of 1987 at an average price of 81 dlrs per share. Bigelow said the company will always have a share buyback program in place whenever it believes it is a better long-term investment than starting or acquring a business. But he did not give any specifics on further repurchases beyond the 10 mln shares already announced. On the subject of acquisitions, Richard Munro, chairman and chief executive said the company is not interested in investing in over-the-air broadcasting, but continues to look at all areas in which it is currently engaged. Munro said book publishing is an area that interested Time. In 1986 the company purchased Scott and Foresman, its biggest acquisition ever. N.J. Nicholas, president and chief operating officer, said the company might be interested in a relatively small book business. He said following the recent agreement for the sale of Harper and Row to the News Corp Ltd , "there may be pieces that Murdoch doesn't want," referring to News Corp chairman Rupert Murdoch. Asked if the company's SAMI business is for sale, Munro said it is a "delicate subject", and "we're looking at all the options." SAMI is a marketing information service for the food industry. Published reports have stated it could be worth as much as 500 mln dlrs. Bigelow said that Time's Home Box Office added subscribers last year and the trend is continuing in the first quarter of 1987. However, he said, HBO's results in the quarter will be down slightly, but in the first quarter of 1986 there was a special gain in the HBO unit. Nicholas said that HBO and Cinemax had combined subscriber growth of 800,000 for last year. He also said the tax rate in 1987 will remain at just under 50 pct because of the repeal of investment tax credits and higher state and local taxes. He said he sees a decrease in the tax rate in 1988 of five or six percentage points. Munro said the company does not plan to increase its dividend. Trygve Myhren, chairman and chief executive of American Television and Communications, said the unit is looking at getting involved in the home shopping video area. "It would be foolish not to be a player there," he said. He said the company had talks with Home Shopping Network Inc prior to that company's public offering last year, but nothing came of the talks. .I 1888 .C interest 1 .T FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES. .W WASHINGTON, April 3 - The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-273 days 5.00 pct 5.00 pct 30-273 days 274-294 days 5.90 pct 5.92 pct 274-294 days 295-344 days 5.00 pct 5.00 pct 295-344 days 345-360 days 5.93 pct 5.93 pct 345-360 days .I 1892 .C money-fx 1; interest 1 .T FED EXPECTED TO TAKE NO MONEY MARKET ACTION. .W NEW YORK, April 3 - The Federal Reserve is expected to take no reserve-management action in the U.S. Government securities market during its usual intervention period, economists said. They said that, if the Fed does act, it will likely add temporary reserves indirectly by arranging one to 1.5 billion dlrs of customer repurchase agreements. Federal funds, which averaged 6.14 pct yesterday, opened at 5-15/16 pct and remained there in early trading. Analysts believe this probably is about where the Fed wants the funds rate to be. .I 1893 .C ship 1 .T AGENCY REPORTS 30 SHIPS WAITING AT PANAMA CANAL. .W WASHINGTON, April 3 - The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 30 ships waiting to enter the canal early today. Over the next two days it expects -- 4/03 4/04 Due: 36 28 Scheduled to Transit: 38 38 End-Day Backlog: 28 18 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 19 hrs 8 hrs South End: 20 hrs 16 hrs .I 1898 .C earn 1 .T LAND'S END INC VOTES INITIAL PAYOUT. .W DODGEVILLE, WIS., APril 3 - Land's End Inc said its board declared a dividend of 10 cts a share payable April 30, record April 13. It is the company's first dividend since it became a public entity last October. .I 1902 .C acq 1 .T ALLWASTE TO ACQUIRE SERVICE FIRM. .W HOUSTON, April 3 - Allwaste Inc said it agreed in principle to acquire all outstanding stock of a company in the industrial service business for 1.98 mln dlrs in common stock. It did not identify the company to be acquired. .I 1904 .C heat 1 .T GLOBAL RAISES HEAVY FUELS PRICES. .W New York, April 3 - global petroleum corp said today it raised the posted cargo prices for number six fuel in the new york harbor 20 cts to 1.45 dlrs a barrel, effective today. the increase brings the prices for one pct sulphur to 21.30 dlrs, up 20 cts; two pct sulphur 20.85 dlrs, up one dlr; 2.2 pct sulphur 20.50, up 1.25 dlrs, and 2.5 pct sulphur 20.25 dlrs, up 1.45 dlrs, it said. prices for 0.3 pct and 0.5 pct sulphur fuels were unchanged at 22.50 and 21.85 dlrs respectively, the company said. .I 1906 .C acq 1 .T SOO LINE TO SELL LAKE STATES DIVISION. .W MINNEAPOLIS, April 3 - Soo Line Corp said it agreed to sell its Lake States Transportation Division to the newly formed Wisconsin Central Ltd. The division conducts rail operations over about 2,000 miles of railroad in Minnesota, Wisconsin, Michigan and Illinois. Soo Line said in January it was seeking bids for the property. Terms were withheld, but Soo has estimated that the transaction will result in a one-time after-tax loss of 8.0 to 15.0 mln dlrs. .I 1909 .C crude 1 .T BP SAYS NO PLANS TO CLOSE SWEDISH REFINERY. .W LONDON, April 2 - The British Petroleum Co Plc said it had no plans to close its refinery in Gothenburg, despite forecasts by a Swedish finance ministry committee that it might be planning such a move. The committee said the refinery's future looked bleak because the Swedish petroleum industry's competitiveness was expected to worsen unless it invested, and because of the effects of a possible tightening of rules on sulphur content. But BP said the unit, in which Sweden's has a 22 pct stake, had performed well both technically and financially up to and including the first quarter of 1987. Current restrictions on sulphur emissions and known future plans for both Sweden and export markets did not cause it any serious problems, it said in a statement. The refinery started up in 1967 and has an annual capacity of 4.7 mln tonnes. .I 1912 .C plywood 1 .T USDA CORRECTS TURKEY CREDIT ANNOUNCEMENT. .W WASHINGTON, April 3 - The U.S. Agriculture Department said an announcement by the department yesterday concerning 15.0 mln dlrs in additional credit guarantees for exports of U.S. commodities to Turkey contained two inaccuracies. First, the USDA said its announcement should not have said that plywood was excluded from the additional three mln dlrs in GSM-102 credit guarantees for lumber. The original announcement said the guarantees included three mln dlrs for lumber, except plywood. Melvin Sims, USDA general sales manager, told Reuters he did not anticipate any plywood would be included in the sales, but that "it's possible it would be." Plywood in the past has not been eligible for GSM-102 credit guarantees because it is considered by some to be a manufactured product. Members states of the Organization for Economic Cooperation and Development have pledged not to offer concessional credits on manufactured products, Sims said. However, the Reagan administration is considering whether to allow plywood sales to be covered by the credit guarantee program, Sims said. Second, the USDA announcement said 6.0 mln dlrs of a previously announced 6.0-mln dlr line for tallow under GSM-102 was available for both public and private sector importers. In fact, the line of credit guarantees for tallow is available only for public sector importers, Walter Stern, Foreign Agricultural Service Turkey analyst, said. .I 1917 .C plywood 1 .T PLYWOOD CREDITS EYED BY REAGAN ADMINISTRATION. .W WASHINGTON, April 3 - The Reagan administration is debating whether to provide government credit guarantees for the export of plywood, a U.S. Agriculture Department official said. As a member of the Organization for Economic Cooperation and Development, OECD, the United States has agreed not to provide any concessional credits on the export of manufactured products. However, USDA General Sales Manager Melvin Sims told Reuters the administration is considering allowing USDA to provide its first export credit guarantees for plywood on the grounds it is not a manufactured product. Sims said it was clear that wood products such as furniture, tables and window frames would be considered manufactured goods and therefore ineligible for export credit guarantees. However, the case of plywood was less clear. "As long as it's a basic material, we consider it still just a processed version of the basic agricultural commodity," Sims said in a telephone interview. Earlier today, USDA said that plywood was eligible under an export credit guarantee offer for Turkey announced yesterday. In its original announcement yesterday, USDA had said the offer included three mln dlrs for the export of lumber, excluding plywood. However, Sims said he did not expect any plywood exports to be including under the lumber guarantee offer. .I 1918 .C earn 1 .T POPE AND TALBOT SEES HIGHER 1ST QTR NET. .W PORTLAND, Ore., April 3 - Pope and Talbot Inc said it expects first quarter earnings to total about one dlr per share, compared with a year-earlier loss of nine cts per share. Each of the company's business segments contributed to the sharp improvement, Pope and Talbot said. The wood products company also said it expects to release first quarter results later this month. .I 1925 .C acq 1 .T STARS TO GO GETS STORES, AGREEMENT. .W LOS ANGELES, April 3 - Stars to Go Inc said it completed its acquisition of 650 video centers previously owned by CVS International Inc and located in Circle K Corp stores. In conjunction with the acquistion, Circle K also granted it the exclusive right to install video cassette rental centers in all existing 3,500 Circle K stores, as well as in future stores, for a period of seven years, Stars to Go said. The company also said it currently has a total of 4,650 centers in operation and expects to increase the total to 6,000 by June 30. .I 1928 .C rubber 1 .T POLYSAR IN JOINT VENTURE ON FINLAND LATEX PLANT. .W SARNIA, Ontario, April 3 - Polysar Ltd, wholly owned by , said it agreed to form a joint venture with Raision Tehtaat, of Finland, to build a synthetic rubber latex plant in southern Finland. Project cost and plant capacity were not disclosed. The joint venture, to be 51 pct owned by Raision Tehtaat and 49 pct by Polysar, will build a plant at Anjalankoski, east of Helsinki, to produce carboxylated styrene-butadiene latex. The plant's production will be used by Finland's paper industry for making coated paper and paper board products. .I 1931 .C earn 1 .T STERLING DRUG INC INCREASES PAYOUT. .W NEW YORK, April 3- Qtrly div 38 cts vs 33 cts Pay June 1 Record May 7 NOTE: company said this is the largest dividend increase in 15 years. .I 1932 .C gold 1 .T CAMPBELL'S MESTON LAKE SETS GOLD TARGETS. .W MONTREAL, April 3 - , 65.3 pct owned by Campbell Resources Inc, said it will begin commercial output at its Joe Mann mine in the Chibougamu area of Quebec at an initial daily rate of 500 short tons of ore grading 0.15 ounce of gold per ton. It said it will improve throughput to 700 tons a day at 0.221 ounce of gold per ton. Meston said current ore reserves at the property total 910,000 tons grading 0.211 ounces of gold per ton and 0.3 pct copper, but it may be able to develop "substantially greater tonnage." Meston said underground drilling below current developed reserves has intersected the main zone 200 feet below the bottom level, with the average grade assayed at 0.530 ounce of gold per ton over true width of 17 feet. A recent drillhole, east of the current shaft and 600 feet from the reserve boundary, intersected three zones grading, respectively, 0.708 ounce per ton over 5.4 feet at depth of 650 feet, 0.706 ounce over seven feet at depth of 765 feet and 0.418 ounce over one foot at depth of 1,000 feet. A second surface hole, 500 feet farther east, intersected 1.068 ounce per ton over 5.3 feet. .I 1934 .C acq 1 .T WARBURG PINCUS DECLINES TO UP SYMBION BID. .W WASHINGTON, April 3 - Warburg, Pincus Capital Co L.P., an investment partnership, said it told representatives of Symbion Inc it would not increase the 3.50-dlr-per-share cash price it has offered for the company. In a filing with the Securities and Exchange Commission, Warburg Pincus said one of its top executives, Rodman Moorhead, who is also a Symbion director, met April 1 with Symbion's financial advisor, L.F. Rothschild, Unterberg, Towbin Inc. In a discussion of the offer, Warburg Pincus said Moorhead told the meeting there are no plans to raise the 3.50 dlr bid. Moorhead told the Rothschild officials that Warburg Pincus considers the offered price to be a fair one, Warburg Pincus said. Last Month Warburg Pincus launched a tender offer to buy up to 2.5 mln Symbion common shares. .I 1938 .C cotton 1 .T NEW YORK FUTURES EXCHANGE TO RELOCATE. .W NEW YORK, April 3 - Lewis Horowitz, president of the New York Futures Exchange, said the New York Stock Exchange board yesterday approved in principle an agreement to relocate the futures exchange at the New York Cotton Exchange. The agreement is subject to the approval of the Cotton Exchange board, which meets Tuesday, April 7. .I 1940 .C wheat 1; grain 1 .T EC WHEAT RELEASE UNLIKELY TO SATISFY U.K. DEMAND. .W By Kenneth Brettell, Reuters LONDON, April 3 - The European Commission's decision to release an additional 300,000 tonnes of British intervention feed wheat for the home market will provide only moderate relief in an increasingly tight market, traders said. Some operators had been anticipating a larger tonnage, pointing out that at this week's U.K. Intervention tender the market sought to buy 340,000 tonnes but only 126,000 tonnes were granted. The new tranche of intervention grain is unlikely to satisfy demand, they said, and keen buying competition for supplies in stores is expected to keep prices firm. The release of the feed wheat followed recent strong representations by the U.K. Grain trade to the Commission. There has been growing concern that rising internal prices, triggered by heavy exports, were creating areas of shortage in interior markets. The latest EC authorisation will add 70,000 tonnes at the April 14 tender and a further 30,000 tonnes later in the month. The remaining 200,000 tonnes will be made available in May and June. News of the release produced an early downward reaction in local physical markets, but by midday some sections had halved early two stg losses while others were unchanged. Ministry of Agriculture figures for March indicate 1.85 mln tonnes of wheat and 1.74 mln tonnes of barley remain in the free market. However, some traders believe these figures are overstated and, while some may still be held on the farm, the bulk of wheat is already sold. Some of the grain is also off the market in futures stores. A total of 2.10 mln tonnes of intervention wheat has been sold for export or to the home market since the season started July 1, leaving an unsold balance in intervention of about 1.59 mln tonnes. Intervention barley sales have reached just over 1.0 mln tonnes, leaving about 753,000 tonnes, traders said. This season's U.K. Export performance has surpassed all early expectations and has created the present nervous situation in domestic markets where the fear now is free market supplies may not last out until new crop becomes available in August. The market is sticking to its recent prediction of total barley and wheat exports of around 10.5 mln tonnes, a new record and nearly double the previous record of 5.9 mln tonnes achieved in the 1984/85 season. Traders expect U.K. Wheat exports to reach 6.0 mln and barley around 4.50 mln tonnes. The Soviet Union has booked a record total of 2.5 mln tonnes of British wheat and barley this season, but only 1.28 mln had surfaced in Customs export figures by March 25, traders said. Other EC countries have bought large amounts of British grain and for the July 1/March 25 period had taken 2.59 mln tonnes of wheat and 2.06 mln tonnes of barley. This compares with 1.28 mln and 868,700 tonnes last season. The market is expecting prices, particularly wheat, to stay buoyant for the remaining few months of the season. If supplies become more difficult and prices strengthen further, feed compounders may increase cereal substitute usage, traders said. .I 1942 .C acq 1 .T CALIFORNIA FIRM HAS FIVE PCT OF MODULAIRE . .W WASHINGTON, April 3 - PBS Building Systems of America Inc, an Anaheim, Calif., company, told the Securities and Exchange Commission it has acquired 150,000 shares of Modulaire Industries, or 5.0 pct of the total outstanding common stock. PBS, whose subsidiaries design, make, sell and lease nonresidential relocatable modular buildings, said it bought the stake for 855,768.75 dlrs "to acquire an equity interest in Modulaire, while it evaluates Modulaire." Depending on several factors, PBS said it may decide to buy additional Modulaire common shares. .I 1943 .C acq 1 .T BOISE CASCADE COMPLETES SALE OF UNIT. .W BOISE, Idaho, April 3 - Boise Cascade Corp said it completed the previously announced sale of its Consumer Packaging Division to Sonoco Products Co for approximately 175 mln dlrs. .I 1947 .C earn 1 .T KENTUCKY CENTRAL TO DECLARE STOCK DIVIDEND. .W LEXINGTON, Ky, April 3 - Kentucky Central Life INsurance Co said the company said it will declare a 200 pct stock dividend on Monday. Accordingly, it said it filed a registration statement with the Securities and Exchange COmmission for a proposed offering of three mln shares of its class a non-voting common stock, which reflects the anticipated dividend. Proceeds will be used for general purposes. .I 1949 .C copper 1 .T CHILE, CHINA TO ESTABLISH PEKING COPPER PLANT. .W LONDON, April 3 - The Chilean state copper corporation, Codelco, the privately-owned Chilean copper fabricator Madeco and Chinese interests are to establish a copper tube plant in Peking, Codelco's U.K. Subsidiary Chile Copper Ltd said. The plant is designed to produce 5,000 tonnes in the first five years and 8,000 tonnes as from year six. Total investment is estimated at 10 mln dlrs, of which the Chileans will contribute two mln. Codelco and Madeco have formed the Chilean Wrought Copper Company to take a 50 pct stake in a new company called Peking Santiago Tube Company with the Chinese holding the other half. .I 1950 .C acq 1 .T ALLIED-SIGNAL TO SELL ELECTRONICS UNIT. .W MORRIS TOWNSHIP, N.J., April 3 - Allied-Signal Inc said it agreed to sell its Amphenol Products unit to a subsidiary of LPL Investments Group , a Wallingford, Conn., investment company, for 430 mln dlrs cash. Closing is expected soon, pending appropriate approvals, the company said. LPL indicated that at closing, warrants will be sold which, when exercised, will reduce its stake in the subsidiary, Amphenol Acquisition Co, to 60 pct, the company said. Lisle, Ill.-based Amphenol had 1986 sales of about 500 mln dlrs. It makes brand name interconnection products. LPL also said Merrill Lynch and Co has committed to buy 175 mln dlrs of subordinated and preferred debt in the new LPL unit, according to Allied-Signal. Canadian Imperial Bank of Commerce has committed up to 340 mln dlrs in senior debt financing, it said. Allied-Signal said in December it was offering for sale Amphenol and six other operating units in its electronics and instrumentation sector. Merrill Lynch, Needham and Co and Lazard Freres served as financial advisors, it said. .I 1951 .C oilseed 1; rapeseed 1 .T JAPANESE CRUSHERS BUY CANADIAN RAPESEED. .W WINNIPEG, April 3 - Japanese crushers bought 4,000 to 5,000 tonnes of Canadian rapeseed in export business overnight for May shipment, trade sources said. .I 1955 .C gnp 1; bop 1 .T PORTUGAL'S GDP FORECAST TO GROW FOUR PCT THIS YEAR. .W LISBON, April 3 - Portugal's Gross Domestic Product (GDP) will grow around four pct this year, the same rate as in 1986, according to a Bank of Portugal forecast. Total investment this year, the country's second as a member of the European Community (EC), will rise nearly 10 pct, again the same rate as last year, the central bank study said. It added that Portugal's current account was forecast to show a surplus of 400 mln dlrs this year compared with 1.13 billion in 1986 and 369 mln the previous year. Last year's high surplus was attributed to cheaper oil and raw materials, lower world interest rates and a weaker dollar. Imports by volume were forecast to grow 10 pct this year and exports four pct compared with increases of 16.5 pct and 6.6 pct respectively in 1986, the bank said. The forecasts were calculated on the assumption that the non-expansionary monetary policy carried out by the current government would be maintained, particularly in budget spending and income and in wage policy. The bank added that the 1987 forecasts were also based on the assumption that the international economic situation and Portugal's world trade relations would remain more or less the same as in 1986. The central bank said the high rate of investment estimated for 1986 was due to government policies and to increasing optimism among firms whose financial situation had improved since 1985. This tendency was expected to continue this year, especially in the construction and public works sectors. Financial aid from the EC had also helped to boost investment last year, the bank said. .I 1956 .C gold 1 .T ASAMERA TO FORM NEW MINING UNIT. .W CALGARY, Alberta, April 3 - Asamera Inc said it will transfer all its mineral interests into a new wholly owned subsidiary, Asamera Minerals Inc, which will later issue up to 15 pct of its shares to the public. The mineral interests will include Asamera's 51 pct interest in the Cannon gold mine in Wenatchee, Wash. Asamera said the mine produced 116,514 ounces of gold in 1986 and is expected to produce 130,000 to 140,000 ounces this year. Asamera said its talks with Breakwater Resources Ltd on a possible merger of mining interests, including the Cannon mine, have been terminated. It did not elaborate. Asamera said holding all its mineral properties in a separate company will give better and more direct recognition to the value of the assets. Its other mining interests include gold exploration prospects on 13,000 acres in Inyo County, Calif., and 500,000 acres in Canada's Northwest Territories, the Gooseberry gold and silver mine in Nevada, chromite properties in northern California and Newfoundland, and a platinum prospect in the Rankin Inlet, Northwest Territories. .I 1957 .C acq 1 .T OCCIDENTAL UNIT SELLS DIVISION. .W DARIEN, Conn, APril 3 - Occidental Petroleum Corp's Occidental Chemcial Corp said it sold the Process chemicals division it acquired as part of the September 1986 purchase of Diamond Shamrock Chemicals to Henkel KGAA of Dusseldorf, West Germany. Terms were not disclosed. The division makes specialty industrial chemicals, it said. Later, industry sources said the division, which had worldwide sales of some 160 mln dlrs last year, was sold for just under 200 mln dlrs. .I 1961 .C copper 1 .T NORANDA MINE SEEN BELOW FULL OUTPUT FOR MONTHS. .W MURDOCHVILLE, Quebec, April 3 - Noranda Inc said production will remain shut down at its fire-damaged copper mine here until it can completely examine the mine. If it decides to keep the mine open it would take four or five months before it could resume full production. Company spokesman Dale Coffin said the investigation could take from a few days to several weeks but would not be more specific. Noranda said when it resumes production it plans to operate the mine at about one-third of the normal 72,000 tonnes annual finished capacity. The fire, which started Wednesday and burned itself out late yesterday weakened part of the mine's support structure, Coffin said. One miner was killed and 56 others were trapped underground for about 24 hours before being brought safely out. .I 1964 .C acq 1 .T U.K. FIRM UPS ITALY FUND STAKE TO 12 PCT. .W WASHINGTON, April 3 - Lloyds Investment Managers Ltd, a London-based investment firm, said it raised it stake in Italy Fund to 760,500 shares, or 12.0 pct of the total outstanding common stock, from 466,000 shares, or 7.4 pct. In a filing with the Securities and Exchange Commission, Lloyds said it bought the additional 294,500 Italy Fund common shares since November 7 for a total of 3.3 mln dlrs. Another 70,000 shares of the stake are held by an affiliate, it said. It said its dealings in Italy Fund stock are for investment purposes only and that it has no current plans to increase or decrease its current stake. .I 1965 .C acq 1 .T INVESTOR HAS FIVE PCT OF SAGE DRILLING . .W WASHINGTON, April 3 - Arthur Appleton, a Chicago investor, told the Securities and Exchange Commission he has acquired 39,000 shares of Sage Drilling Co Inc, or 5.1 pct of the total outstanding common stock. Appleton said he bought the stock for 116,554 dlrs for investment purposes. Depending on several circumstances, Appleton said he may buy more Sage common shares, or sell some or all of his current stake. .I 1972 .C copper 1 .T NORANDA SETS TEMPORARY MINE SHUTDOWN. .W Murdochville, Quebec, April 3 - said production will remain shut down at its fire-damaged copper mine here until it can completely examine the mine. The fire, which started Wednesday and burned itself out late yesterday, killed one miner and trapped 56 others underground for about 24 hours. The 56 were eventually brought safely out of the mine. Company spokesman Dale Coffin said the investigation could take from a few days to several weeks, but would not be more specific. Noranda said that, when it resumes production, it plans to operate the mine at about one-third of the normal 72,000 metric tons annual finished capacity. The fire weakened part of the mine's support structure, Coffin said. Noranda said if it decides to keep the mine open, it would take four or five months before it could resume full production. .I 1974 .C acq 1 .T CIS TECHNOLOGIES TO SELL SHARES TO SWISS CO. .W TULSA, Okla, April 3 - CIS Technologies Inc said it executed a formal share purchase agreement with Swiss Reinsurance Co of Zurich, Switzerland.