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INSTITUTES SEE NO WEST GERMAN RECESSION

The five leading West German economic research institutes, which have revised down their forecasts for 1987 growth, do not predict a recession in West Germany, their spokesman, Hans-Juergen Schmahl said. The institutes were divided in their spring report on forecasts for 1987, with three predicting two pct growth and two seeing only one pct expansion. Growth was 2.4 pct in 1986. Schmahl, presenting the report at a news conference, said, "None of the institutes reckons with a recession or with the beginning of a recession." He added, however, that exports remained the weak point of the economy . Schmahl also said West Germany would have to expect further encroachments of foreign goods onto its markets. Arthur Krumper of Munich's Ifo institute, which with the DIW of West Berlin had presented the more pessimistic view of the economy, said, "The braking effects (on the economy) produced by external factors will remain considerable for most of the year." REUTER 

DEPOSIT GUARANTY CORP <DEPS> 1ST QTR NET

Shr 1.11 dlrs vs 1.10 dlrs Shr diluted 1.03 dlrs vs 1.02 dlrs Net 8,186,000 vs 8,114,000 Reuter 

COMPUTER ASSOCIATES <CA> STARTS BPI <BPII> BID

Computer Associates International Inc said it has started its previously-announced 1.92 dlr per share tender offer for all shares of BPI Systems Inc. In a newspaper advertisement, the company said the offer, which has been approved by the BPI board and is to be followed by a merger at the same price, is conditioned on receipt of at least 1,813,742 shares. The offer and withdrawal rights expire May 15 unless extended. In addition to shares sought in the tender, shareholders of BPI owning 1,951,720 shares or 34.6 pct have agreed to sell their shares to Computer Associates for the tender price. Reuter 

SAUNDERS DENIES "PAPER SHREDDING" ALLEGATIONS

Former Guinness Plc <GUIN.L> chairman Ernest Saunders dismissed allegations he ordered the shredding of documents in the early stages of a U.K. Investigation as "completely untrue," the Press Association news agency reported. The allegations were made by his former personal assistant Margaret McGrath, in a statement to the High Court on Friday. Saunders' reply was read out by his lawyer at the start of the fourth day of a hearing, on an application by Saunders and U.S. Lawyer Thomas Ward for the discharge of "asset-freezing" orders obtained by Guinness on March 18. McGrath alleged that among the documents destroyed were papers from the files on the <Distillers Co Plc> bid, as well as diaries, correspondence and an address book. The temporary orders froze property owned by the two men valued about 5.2 mln stg, the sum paid by Guinness into a Jersey bank last May during the Distillers takeover. They are also contesting orders requiring them to disclose the whereabouts of the money and hand it back to Guinness lawyers. REUTER 

BANK BOARD CLOSES OREGON SAVINGS ASSOCIATION

The Federal Home Loan Bank Board said it had closed Future Savings and Loan Association of Albany, Ore., and transferred its insured deposits to Williamsburg Savings Bank of Salt Lake City, Utah. Future had 6,614 accounts with total deposits of 57.3 mln dlrs. On Monday, its five branches in Oregon will open as branches of Williamsburg, which has 287 mln dlrs in assets and 19 offices in Oregon, Washington state and Utah. The Bank Board said it closed Future because the association was insolvent. The Board said Future lost money on commercial real estate loans which were poorly underwritten and inadequately appraised. Future also violated regulations on the amount of money which could be loaned to one individual, the Board said. Accounts of up to 100,000 dlrs at Future are insured by the Federal Savings and Loan Insurance Corp (FSLIC). Depositors with accounts of over 100,000 dlrs will share Future's assets on a pro rata basis after the assets have been liquidated. Future was the ninth federal savings association to be closed this year compared with 21 in 1986. Reuter 

KING WORLD PRODUCTIONS INC <KWP> 2ND QTR FEB 28

Shr 21 cts vs eight cts Net 6,597,000 vs 2,602,000 Revs 56.4 mln vs 23.2 mln 1st half Shr 57 cts vs 32 cts Net 17.6 mln vs 9,810,000 Revs 137.7 mln vs 76.0 mln Reuter 

BLUE CIRCLE PROFITS, DIVIDEND RISE

Year to end-December Shr 76.7p vs 67.7p Div 17p making 23p vs 21p Pretax profit 127.0 mln stg vs 116.9 mln Turnover 1.10 billion vs 947.2 mln Tax 25.0 mln vs 26.3 mln Note - company full name is Blue Circle Industries Plc <BCIL.L>. Company said it proposes one-for-one capitalisation issue Gross profit 390.9 mln vs 321.6 mln Distribution costs 215.6 mln vs 177.6 mln Administrative expenses 65.1 mln vs 58.9 mln Other operating income 5.3 mln vs 11.0 mln Share of profits of related companies 50.0 mln vs 58.1 mln Operating profit 165.5 mln vs 154.2 mln Net interest payable 33.6 mln vs 32.2 mln Exceptional items 4.9 mln debit vs 5.1 mln debit Minorities 3.4 mln vs 6.9 mln Extraordinary items after tax 39.5 mln vs 4.2 mln Pretax profit includes - U.K. 37.7 mln vs 20.5 mln U.S. 27.5 mln vs 22.8 mln Mexico 15.0 mln vs 20.7 mln Australasia 15.7 mln vs 13.2 mln Africa 12.0 mln vs 12.6 mln REUTER 

SPANISH RAILWAY WORKERS CALL STRIKE

Railway cargo handlers yesterday called a three-day strike starting April 19 to press for higher wages, union sources said. Workers of the Contratas Ferroviarias franchise firm, which is also responsible for train and railway station maintenance, are asking for an eight pct wage rise. The company has offered four pct. Reuter 

NORTHROP <NOC>/EATON <ETN> IN HELICOPTER PROGRAM

Northrop Corp said it and Eaton Corp have been selected by the McDonnell Douglas Corp/Textron Inc team to codevelop the aircraft survivability equipment for the U.S. Army's light helicopter experimental program. The Army is expected to pick contractors to produce the helicopters in 1992. Reuter 

CRAZY EDDIE <CRZY> MAY MAKE ACQUISITION

Crazy Eddie Inc said it is negotiating for the possible acquisition of Benel Distributors Ltd, which operates Crazy Eddie Record and Tape Asylums in all Crazy Eddie stores. It said the acquisition would probably also include affiliate Disc-o-Mat Inc, which operates a number of record and tape stores in the New York metropolitan area. Other details were not disclosed. Reuter 

CRAZY EDDIE <CRZY> SETS DEFENSIVE RIGHTS

Crazy Eddie Inc said its board has adopted a defensive shareholder rights plan and said it has received "friendly inquiries" on its acquisition. It said under the plan, shareholdrs of record as of April 21 will receive a right to purchase under certain circumstances at a price of 42 dlrs 0.01 preferred share for each common share held. The rights will expire April Nine. The company said the rights would be exercisable 20 business days after a party were to acquire 20 pct or more of Crazy Eddie common stock or announce a tender or exchange offer that would result in ownership of 30 pct or more. Crazy Eddie said if a party owning 20 pct or more of its stock were to merge into it or if a party were to acquire 40 pct or more of Crazy Eddie stock, right holders other than the acquiring party would be entitled to acquire common shares or other securities or assets with a market value equal to twice the rights' exercise price. If after a party acquired 20 pct or more of its stock Crazy Eddie were acquired or 50 pct of its earnings power or assets sold, rightholders other than the acquirer would be entitled to buy shares of the acquirer's common stock worth twice the rights' exercise price, the company said. Crazy Eddie said if a party were to acquire 30 pct or more of its common stock and then fail to acquire Crazy Eddie within 180 days thereafter, rightholders would be entitled to exchange their Crazy Eddie common stock for subordinated notes of Crazy Eddie maturing either one year or, above a certain dollar limt, five years after issuance. Crazy Eddie said adoption of the plan is not in response to any known effort to acquire control of it. But the company said it has become aware of some "possible accumulations" of its stock has has received some "friendly inquiries." Reuter 

SIX KILLED IN SOUTH AFRICAN MINE

Six workers were killed and four injured in an undeground rock fall at South Africa's second largest gold mine today, the mine owners said. It was the third major mine accident in the country in less than a week. Thirty four workers died in methane gas explosion at a coal mine last Thursday. Reuter 

ZAMBIA'S KWACHA FALLS AT WEEKLY AUCTION

The Zambian kwacha fell at this week's foreign exchange auction to 18.75 kwacha to the dollar from last week's 16.95, the Bank of Zambia said. The rate was the lowest since the auctions resumed two weeks ago under a new two-tier exchange rate system worked out with the World Bank and International Monetary Fund. The Bank of Zambia said it received 370 bids, ranging from 13.00 to 20.75 kwacha, for the six mln dlrs on offer. One hundred and thirty-five bids were successful. A British High Commission spokesman said Britain would put eight mln stg into the auction at a rate of one mln a week as soon as Zambia reached a full agreement with the IMF. The money could be spent only on goods produced and supplied by British firms, excluding luxuries and defence equipment, the spokesman added. Reuter 

U.S. SENATE LEADER CALLS FOR INTEREST RATE CUTS

Senate Finance Committee Chairman Lloyd Bentsen (D-Tex.) called on major industrial countries to make a pledge at the coming economic summit in Venice to cut interest rates. "I think at the summit meeting in Venice what we ought to be trying to do is to get the other major industrial nations that are involved to bring interest rates down, say, one pct," Bentsen told NBC Television's "Meet the Press." Bentsen said coordinated rate cuts could take "billions off the debt service of the Latin countries" and help ease protectionist pressures in the industrial countries. Bentsen also South Korea and Taiwan should be pressured to revalue their currencies in relation to the U.S. dollar. "You take the Taiwanese, with an enormous capital surplus, enormous trade surplus, and we've had very little cooperation there," he said. Departing Deputy Treasury Secretary Richard Darman told the same television network he agreed that the U.S. dollar had not fallen enough against the currencies of some countries. "I think that more does have to be done there in negotiations with the countries involved, the so-called NICs (newly industrialized countries)," he said. Darman said such negotiations with newly industrialized countries were underway privately. Bentsen predicted Congress and the White House would agree on a fiscal 1988 budget that would raise between 18 and 22 billion dlrs in new revenues. The Texas senator said a series of excise taxes would be considered by Congress, including an extension of the telephone tax and new levies on liquor and cigarettes. Bentsen said he supported an oil import fee, but that it would not happen without President Reagan's support. Darman called for a "top level negotiation" between the White House and Congress on a budget compromise that would include asset sales, some excise taxes, cuts in middle-class entitlement programs, "a reasonable, steady rate of growth in defense" and reform of the budget process. Reuter 

OFFER FOR DOME MAY SHORT-CIRCUIT ITS DEBT TALKS

A 3.22 billion dlr offer for Dome Petroleum Ltd <DMP.MO> by TransCanada Pipelines Ltd <TRP.TO> may short-circuit Dome's restructuring plan and open the door for more takeover bids, oil analysts said. Dome is trying to get approval for a plan to refinance debt of more than 4.5 billion dlrs by July 1, 1987, when an interim debt plan that allowed the Canadian oil and gas firm to defer substantial payments to creditors will expire. Analysts said TransCanada's bid signals Dome's debtholders that an alternative exists to Dome's debt plan. Dome announced its plan to 56 major creditors as well as public noteholders in March after several months of delicate negotiations. TransCanada's proposal "amounts to a quasi debt restructuring," oil analyst Doug Gowland of Brown Baldwin Nisker Ltd said from Toronto. Calgary-based Dome's restructuring plan would allow creditors to convert debt to common shares under a formula yet to be negotiated. Payments on remaining debt would be linked to cash flow generated by assets pledged against the debt. "The weakness of the whole debt-refinancing proposal is that even with approval of creditors, there is no assurance that Dome will in fact be able to repay all of its debt obligations," said Wilf Gobert, an oil analyst for Peters and Co Ltd in Calgary. TransCanada's announcement came as a surprise since Dome was waiting for responses from creditors on its proposed refinancing packages, Gobert said. The TransCanada proposal could open the bidding for Dome since other potential buyers were probably waiting for lenders to agree to a restructuring, he added. "I would think that the debtholders would want to entertain any and all offers (for Dome)," Gobert said. Dome spokesman David Annesley said in New York that TransCanada's announcement could be seen as an attempt to fix the bidding price for Dome and an effort to preclude other possible buyers from making an offer. "By drawing attention to us in our discussions, it means that others may be a little reluctant to come forward," he said. Dome does not consider TransCanada's proposal a formal offer because the pipeline utility's announcement breached a confidential agreement between the two companies, he said. Dome responded to the statement by suspending discussions with TransCanada in order to pursue talks with other unidentified parties. However, Dome said its management and financial advisers would evaluate all proposals, including TransCanada's. Gowland said TransCanada's offer is probably a fair price for the company's 36.1 mln acres of oil and gas land holdings. However, he said not enough financial details are known about Dome's debt restructuring to compare the value of TransCanada's proposed offer. Reuter 

SOSNOFF RAISES BID FOR CAESARS WORLD <CAW>

Investor Martin T. Sosnoff said he has raised his offer for Caesars World Inc shares to 32 dlrs each from 28 dlrs and has reduced the number of shares he is seeking to 29.1 mln from all those not already owned. In a newspaper advertisement, Sosnoff said the bid by his MTS Acquisition Corp, withdrawal rights and the proration period will now expire June 19 unless extended. The offer had been scheduled to expire May 15. In late March, Sosnoff said he had received a "negligible" number of shares in response to the offer, which had been rejected by Caesars as inadequate. Sosnoff already owns about four mln of Caesars' 30 mln common shares now outstanding, or a 13.3 pct interest on a primary basis. Last week, Caesars' board approved a recapitalization plan as an alternative to the Sosnoff offer under which shareholders would receive a special dividend of 25 dlrs per share, subject to approval by shareholders at a special meeting to be held in June. The company planned to borrow 200 mln dlrs and sell 800 mln dlrs in debt to finance the payout. Sosnoff said in the newspaper advertisement that the amended offer is conditioned on receipt of enough shares to give him a majority interest on a fully diluted basis and on the arrangement of financing, as well as to approvals by New Jersey and Nevada gaming authorities. He said the tender would be the first step in acquiring all of Caesars' shares and if successful would be followed by a merger transaction. Sosnoff said later in a statement that the 29.1 mln shares he is now seeking, together with the 4,217,675 shares he owns, would give him a 92.4 pct interest on a fully diluted basis. He said he still has received only a "negligible" number of shares in response to his tender. In a letter to Caesars' chairman Henry Gluck included in the statement, Sosnoff said Gluck had again refused, on April 8, to meet with him, even though he had said he was willing to increase the price of his offer. Sosnoff said the financing for the offer is almost fully in place. Sosnoff said PaineWebber Group Inc <PWJ> has now delivered to him commitments to purchase up to 475 mln dlrs of increasing dividend cumulative exchangeable preferred stock of MTS Holding Corp, an indirect parent corporation of MTS Acquisition. He said Marine Midland Banks Inc <MM>, which leads a syndicate that has provided commitments for a 500 mln dlr margin facility, believes it will be able to arrange for further commitments under the margin facility to advance up to an additional 25 mln dlrs that may be needed to permit the purchase of shares under the offer. Sosnoff said under the merger that would follow his tender, each of the 2,750,000 Caesars shares not covered by the offer, or 7.6 pct on a fully diluted basis, would be converted into Series A preferred stock valued at 32 dlrs per shareby an independent investment baking firm. He said "To the extent that fewer than 29,100,000 sdhares are purchased in the offer, the stockholders would receive a combination of cash and Series A preferred stock having a value of 32 dlrs per share of Caesars." Sosnoff said he believes terms of his offer are superior to Caesars' recapitalization. Sosnoff said he will be meeting this week with gaming officials in Nevada in an effort to expedite the investigatory process required for regulatory approval, a process that it already underway in New Jersey. He said his offer has been extended based on the likely duration of the regulatory process. He said he intends to further extend the offer if the approval process is not completed by the expiration date. Reuter 

CRAZY EDDIE <CRZY> EXECUTIVE LEAVES BOARD

Crazy Eddie Inc executive vice president and chief financial officer Sam Antar, who turns 66 soon, has resigned from its board and has been replaced by William H. Saltzman, vice president and general counsel of Sun/DIC Acquisition Corp. Sam Antar and other executive vice presidents Mitchell Antar and Isaac Kairey were named to an Office of the President that took over the duties of chief executive officer from chairman Eddie Antar in January. Reuter 

SHULTZ BEGINS TALKS WITH SHEVARDNADZE

U.S. Secretary of State George Shultz and Soviet Foreign Minister Eduard Shevardnadze met today an in elegant Moscow mansion in pursuit of the first superpower arms control agreement in nearly a decade. Shultz, accompanied by senior advisers and technical experts, arrived from Helsinki aboard a U.S. Air Force plane and went straight into a closed-door meeting with Shevardnadze and Soviet negotiators. State Department spokesman Charles Redman told reporters that U.S. Arms control advisers had been told not to discuss the U.S. Proposals with the press. U.S. Officials have been optimistic about the possibility of progress at the talks, scheduled to end on Wednesday. Shultz has been more guarded, saying that if the Soviet officials approached the talks in the same constructive spirit as the Americans "we should be able to move the ball along in a very positive way." Shultz is expected to protest about a spying network that has come to light at the U.S. Embassy and which has cast a shadow over his talks. For its part the Soviet Union has said its diplomatic missions in the United States are subjected to surveillance and has accused Washington of "spy-mania." Shevardnadze met Shultz with a handshake at the door of the ornate guest house built by a Russian merchant, now belonging to the Foreign Ministry. Later, in the white marble room where the discussions were being held, they had to be prompted by photographers to shake hands again. "There was no instinctive warmth," an observer said. Reuter 

COMPACT VIDEO INC <CVSI.O> YEAR LOSS

Shr loss 67 cts vs loss two cts Net loss 3,721,000 vs loss 107,000 Revs 155.7 mln vs 24.2 mln NOTE: Results for 12 months ended Dec 31, 1986, and eight months ended Dec 31 1985. Because of the acquisition of Brooks Drug in September 1986 and the company's change of fiscal year, prior-year results are not comparable, Compact Video explained. Reuter 

UAW SAYS MAJOR WORK STOPPAGE POSSIBLE AT GM, FORD

Leaders of the nation's unionized automobile workers have signaled their intent for a major work stoppage later this year if General Motors Corp. <GM> and Ford Motor Co. <F> fail to satisfy demands for job security, pay raises and protection against shifting U.S. production to foreign sources. United Automobile Workers (UAW) president Owen Bieber was loudly cheered by some 3,000 local delegates at a special bargaining strategy convention yesterday when he declared the 1.1 mln-member union is ready to go to "war" against the major auto makers in support of its goals. "It takes two to make peace, but only one to make war ... and if it's war, the UAW will be ready for it. War against the insecurity of layoff," the UAW chief said. The militant tone as the four-day convention opened underscored the probability for bitter confrontation during the summer's labor negotiations between the UAW and the auto companies over new contracts covering some 500,000 U.S. workers at G.M. and Ford. The current pacts expire September 14. GM Vice President and chief labor negotiator Alfred Warren recently told Reuters that the 1987 bargaining round would likely be the most difficult of the decade because of the carmaker's drive to cut costs and shed uncompetitive parts-making operations employing thousands of workers. Job security has been the union's main theme for several years. A master resolution stating UAW goals notes that the union's membership working in the auto industry has fallen by 200,000 since 1978 to a current level of about 690,000. GM was hit by a six-day selective national strike in 1984 before signing its current labor agreement, which contains a one billion dlr job security fund to protect workers whose jobs are threatened by new technology or moves to outside suppliers. At Ford, which has more than 8 billion dlrs in cash reserves and out-earned larger GM last year for the first time since 1924, executives said they would oppose the UAW's demand for a return to guaranteed percentage annual pay increases that were dropped in the last recession. Ford has not been hit by a national strike since 1976, which has prompted some union analysts to suggest it is now Ford's "turn," to be the UAW strike target. Bieber yesterday described the UAW's situation in 1987 as "crucial" in view of the growing penetration of the U.S. market by imported cars and trucks as well as moves by the Detroit automakers to use foreign and other non-union sources to secure cheaper vehicles and auto parts. He said the union will stress job security, annual general pay raises, improved profit-sharing and limits on companies' ability to transfer work. Reuter 

NEWORLD BANK FOR SAVINGS <NWOR> 1ST QTR NET

Oper shr 45 cts vs 26 cts Oper net 2,258,000 vs 1,166,000 NOTE: 1986 net excludes 842,000 dlr tax credit. Reuter 

JANUARY NEWPAPER ADVERTISING INCOME UP 10.5 PCT

The Newspaper Advertising Bureau said its preliminary estimates show spending for newspaper advertising in January totaled 2.06 billion dlrs, an increase of 10.5 pct from the year earlier month. The bureau said retail advertising for the month was up 10.7 pct to 1.02 billion dlrs. National advertising was off 0.7 pct to 264 mln dlrs. Classified increased 14.7 pct to 777 mln dlrs. Reuter 

USAIR TO BUY 55 PCT OF 17.0 MLN PIEDMONT SHARES TENDERED

DEUTSCHE TEXACO NOT AFFECTED BY LEGAL DISPUTE

Deutsche Texaco AG, Texaco Inc's <TX.N> 99.15 pct-owned West German subsidiary, will not be affected by the legal dispute with the Pennzoil Company <PZL.N>, managing board chairman Armin Schram said. Schram told a news conference that Deutsche Texaco's business will not be affected by the "legal proceedings in the U.S. Our liquidity is more than sufficient to guarantee supplies of crude oil and products to refineries and customers." Schram said West German law prohibited the parent company from "touching our basic capital of 500 mln marks and reserves of 81 mln." REUTER 

PAKISTAN CONFIRMS KENYA TEA IMPORT INVESTIGATION

Pakistan's Corporate Law Authority, CLA, has begun an enquiry into imports of tea from Kenya and the trade imbalance between the two countries, CLA chairman Irtiza Husain confirmed. He told Reuters by telephone that importers Liptons and Brooke Bond had been asked to supply data to the authority and a hearing would be held. The CLA would then report back to the Commerce Ministry, which had requested the enquiry. Husain said no date had yet been set for the hearing and declined to give further details of the matter. Industry sources told Reuters reports that the companies' tea import licences had been suspended were incorrect. Reuter 

PORTUGUESE ECONOMY REMAINS BUOYANT DESPITE CRISIS

Portugal's economy, which has been enjoying one of its most buoyant periods in more than a decade, may now be strong enough to shrug off the country's latest government crisis, analysts said. But the April 3 ousting of Prime Minister Anibal Cavaco Silva's government could slow economic reforms and investment as Portugal continues to adapt to membership in the European Community, which it joined in January last year, they said. Cavaco Silva's minority Social Democratic Party, PSD, was toppled in a parliamentary censure vote by left-wing parties. The centre-right administration had made economic growth reform a priority in its 17 months in office. In 1986, Portugal's economy grew four pct, its current account surplus swelled to more than one billion dlrs and inflation fell to 10 pct, from 20 pct in 1985. Analysts and businessmen said the prospects of instability were worrying but they felt the foundations for continued growth had not been badly shaken. "The economy has developed a certain self-confidence that is now less dependent on the political situation," said Fritz Haser, economics professor at Universidade Livre, Lisbon. "The market doesn't see this as a real crisis yet," economist Jorge Braga de Macedo told Reuters. Businessmen have identified political instability over the last 13 years as one of the biggest obstacles to lasting economic progress. The PSD administration was the 16th formed since the 1974 revolution. Portugal's developing stock markets, however, remain buoyant. Brokers and unit trust managers said the recent surge in economic confidence under the PSD rule was still largely underpinned by continuing optimistic forecasts. Investment grew nearly 10 pct in 1986 and a Bank of Portugal forecast, released on the day the PSD government fell, predicted the pace of investment and overall economic growth would remain at similar levels this year. But analysts said the crisis interrupted current policies and could slow economic development. Soares, who is expected to announce a decision by the end of the month, can either call early elections or form a new government from parties in the existing left wing-dominated parliament. Many businessmen said they strongly favoured quick elections as the best solution. "There is a good chance that a majority government could result from early elections," Confederation of Portuguese Industry (CIP) president Pedro Ferraz da Costa said. He said they were optimistic this could mean the continuation in the near future of liberalisation policies introduced over the last year. The left-wing parties favour a parliamentary solution, but the PSD said it wants an early election in which opinion polls say they could win an overall majority. A PSD majority would also open the way for more wide-ranging reforms, such as relaxation of labour laws and possible denationalisation of industry, the analysts said. Cavaco Silva has accused the left-wing opposition parties of blocking key economic reforms. The left-wingers said Portugal's positive economic results were more the product of favourable international conditions such as cheaper oil and raw material imports, than of PSD policies. REUTER 

MALAYSIA CUTS FIVE YEAR PLAN BUDGET

Malaysia will reduce its budget for the 1986-1990 development plan to 49 billion ringgit from its original 74 billion to limit expenditure, the Economic Planning Unit (EPU) of the Prime Minister's Department said. EPU director-general Radin Soenarno was quoted by the national news agency Bernama as saying this would be done by suspending many projects which could only take off when the recession-hit economy improved. Radin did not specify what projects would be suspended but said the Fifth Malaysian Plan will be reviewed annually instead of on a mid-term basis. REUTER 

MERRILL LYNCH FIRST QTR SHR ONE DLR VS 85 CTS

SHULTZ ARRIVES IN MOSCOW FOR ARMS TALKS

U.S. Secretary of State George Shultz arrived in Moscow for talks with Soviet leaders likely to focus on nuclear arms reductions. Shultz flew in from Helsinki and drove straight from the airport to a meeting with Soviet Foreign Minister Eduard Shevardnadze. The three days of talks are overshadowed by an espionage row between the two powers. Shultz has said he wants to discuss it but Soviet officials have indicated they expect him to concentrate on disarmament issues. Reuter 

MERRILL LYNCH AND CO <MER> 1ST QTR NET

Shr primary one dlr vs 85 cts Shr diluted 97 cts vs 81 cts Net 108.6 mln vs 86.8 mln Rev 2.70 billion vs 2.17 billion Reuter 

COOPER CANADA <CPC.TO> SETS SHARE CONSOLIDATION

Cooper Canada Ltd said it planned to consolidate its common and class A non-voting shares into one class of common shares, subject to shareholder approval on May 1. Cooper Canada said the proposal would result in only voting shares being available to respond to Charan Industries Ltd <CHN.TO>'s previously announced six dlr a share takeover bid. Reuter 

CORONA <ICR.TO> FAVORS ROYEX <RGM.TO> OFFER

International Corona Resources Ltd said its board of directors believes that terms of Royex Gold Mining Corp's previously announced offer are fair and reasonable, but it decided it will make no recommendation on the offer to its shareholders. Royex on March 31 offered to buy four mln Corona shares. For each Corona share it offered four dlrs cash, one series B share of Royex, one series C share of Royex and one share purchase warrant. It also bid for all Corona warrants expiring Aug 31, 1987. Reuter 

S.ATLANTIC <SOAF.O>, INDEPENDENCE <INHO.O> MERGE

South Atlantic Financial Corp said it has agreed in principle to merge with Independence Holding Co into a new company to be called SAFCO International Ltd. It said each South Atlantic share would be exchanged for one SAFCO share and each Independence share for 2.822 SAFCO shares. Independence now owns about 40 pct of South Atlantic's 9.8 mln primary common shares. South Atlantic said said its chairman and chief executive officer Sheldon S. Gordon would have the same posts with SAFCO and Independence president Ronald G. Strackbein would be president of SAFCO. The company said the transaction is subject to execution of definitive agreements, the receipt of fairness opinions from investment banks and approval by boards and shareholders of both companies. It said proxy materials are expected to be maioled this quarter. Both South Atlantic and Independence are insurance companies. Reuter 

HOME FEDERAL UPPER EAST TENNESSEE <HFET> 1ST QTR

Shr 47 cts vs not given Net 2,100,000 vs 1,277,000 NOTE: Company went public in fourth quarter of 1986. Home Federal Savings and Loan Association of Upper East Tennessee. Reuter 

STATEWEST EXPANDS SERVICE, ENTERS FARE AGREEMENT

StateWest Airlines Inc said it started service to Las Vegas, Nev., Tucson, Ariz., and San Diego, and entered into a joint fare agreement with Trans World Airlines <TWA>. StateWest said the fare agreement will result in lower fares for StateWest passengers who continue to any one of Trans World's 50 U.S. destinations. The company also said the new destinations expand its daily flights to 49 and it added the company's fourth advanced Shorts 360 to its fleet of aircraft. Reuter 

U.S. FEEDER STEER PRICE

The U.S. Feeder Steer Price, or USFSP, as posted by the CME is calculated by Cattle Fax and represents the price used for cash settlement of the CME Feeder Cattle contract. The USFSP is a seven-calendar-day average of feeder steer prices from 27 states, based on auction and direct country sales for feeder steers that weigh between 600 and 800 lbs and are estimated to grade between 60 and 80 pct choice when fed to slaughter weight. April 9 Previous quote 70.03 69.87 Reuter 

NOVA <NVA.TO> TO REDEEM PREFERRED

Nova, An Alberta Corp said it will redeem its 12 pct cumulative redeemable convertible second preferred shares on May 15, 1987 at the redemption price of 26.25 dlrs per share. Holders may convert their shares into class A common shares on the basis of 3.435 class A common shares for each 12 pct convertible preferred share held, Nova said. Nova said it retained Burns Fry Ltd, Merrill Lynch Canada Inc and Gordon Capital Corp to maintain a market bid of at least 26-3/8 dlrs for the preferred shares until May 12, 1987. Nova said that if any 12 pct preferred shares are acquired by the broker group, the shares will be converted into class A common shares. Reuter 

COLUMBIA GAS <CG> SEEKS CONTRACT COST RECOVERY

Columbia Gas Transmission corp said it made an abbreviated, streamlined filing with the Federal Energy Regulatory Commission to recover a portion if its costs of renegotiating high-cost gas purchase contracts. Recently, the Columbia Gas System Inc pipeline subsidiary said, FERC denied on procedural grounds and without prejudice a proposal to include these costs in the company's most recent purchased gas adjustment -- or PGA -- filing. Noting it has has asked for a rehearing on the denial ruling, Columbia Gas said it would withdraw its alternative filing if the commission grantes its request for a rehearing to include the contract renegotiation costs in its PGA or consolidates this issue in the pipeline's general rate filing and permit recovery, subject to refund, effective April one. The company said the alternative filing seeks to recover about 79 mln dlrs a year through the pipeline's non-gas sales commodity rates. This annual amortization amount is based on recovery of about 653 mln drls over an 8-1/4 year period, beginning April 1, 1987. Columbia Gas said the filing would increase the pipeline commodity rates by 15.74 cts per mln Btu to 2.95 dlrs per mln. The company said it orginially sought to include these costs in its PGA since the payments to products resulted in almost five billion dlrs in prospective price relief and were not related to take-or-pay buyout costs. It explained this interpretation was based on FERC's April 10, 1985, Statement of Policy which said that only take-or-pay buyout costs must be recovered through a general rate filing under the Natural Gas Act. As a result of renegotiating contracts for high-cost gas, Columbia Gas said, it has been able to reduce the average price paid for gas purchased from Southwest producers to 1.96 dlrs per mln Btu in December 1986 from 3.64 dlrs per mln in April 1985. The pipeline said Southwestern producers account for 46 pct of its total available gas supply this year. Reuter 

TURKEY TO APPLY FOR EC MEMBERSHIP

Turkey is to apply tomorrow for European Community membership, Foreign Ministry officials said. They told Reuters that Minister of State Ali Bozer would lodge the application in Brussels with Belgian Foreign Minister Leo Tindemans. Turkey would be the 13th member of the group, of which Belgium is current president. Reuter 

MELLON BANK <MEL> CHAIRMAN RETIRES

Mellon Bank Corp said J. David Barnes has retired as chairman and chief executive officer and resigned from the board of the company and its Mellon Bank subsidiary. The company said senior director Nathan W. Pearson will succeed Barnes but also appointed a special search committee to review all internal and external candidates for chairman. Mellon said "Mr. Barnes felt a change of management at this time would help the bank move more quickly and with less constraint in meeting the needs of shareholders, customers and employees." Pearson is 75 and is financial advisor to the Paul Mellon Family Interests. Barnes is 57. On Friday Mellon reported a 59.8 mln dlr first quarter loss. It had placed 310 mln dlrs of Brazilian loans on a nonaccrual basis and said it would cut its quarterly dividend to 35 cts per share from 69 cts due to energy, foreign, commercial real estate and heavy industry loans. Reuter 

HUNGARY RAISES PRICES IN EFFORT TO CURB DEFICIT

Hungary has announced sharp price increases for a range of food and consumer products as part of its efforts to curb a soaring budget deficit. The official MTI news agency said the government decided consumer price subsidies had to be cut to reduce state spending. From today the price of meat will rise by an average 18 pct and that of beer and spirits by 10 pct, MTI said. The measures are also aimed at cooling an overheated economy, and could help dampen Hungarians' appetite for imported Western goods which consume increasingly expensive hard currency, the diplomats said. The diplomats also said, however, that they did not expect the kind of social unrest that followed sharp price rises in other East Bloc states, notably Poland. MTI said consumer goods will also become more expensive, with the price of refrigerators rising some five pct. It also announced a number of measures to ease hardship, including higher pensions and family allowances. Reuter 

UAW CHEERS CALL FOR "WAR" ON GM AND FORD

Leaders of the nation's unionized automobile workers have signalled their intent for a major work stoppage later this year if General Motors (GM) and Ford Motor Co., fail to satisfy demands for job security, pay raises and protection against shifting U.S. production to foreign sources. United Automobile Workers (UAW) president Owen Bieber was loudly cheered by some 3,000 local delegates at a special bargaining strategy convention yesterday when he declared the 1.1-mln-member union is ready to go to "war" against the major auto makers in support of its goals. "It takes two to make peace, but only one to make war ... and if it's war, the UAW will be ready for it. War against the insecurity of layoff," the UAW chief said. Reuter 

P.H. GLATFELTER CO SAYS IT WILL BUY ECUSTA CORP FOR 149 MLN DLRS IN CASH

FAMILY HEALTH SYSTEMS INC <FHSY> 2ND QTR FEB 28

Shr profit one ct vs nil Net profit 74,000 vs profit 10,000 Revs 925,000 vs 112,000 Avg shrs 10 mln vs nine mln Six mths Shr loss nil vs loss one ct Net loss 16,000 vs loss 90,000 Revs 1,855,000 vs 333,000 Reuter 

CBT NIGHT TRADING SESSION SEEN GETTING APPROVAL

The Commodity Futures Trading Commission, CFTC, is expected to accept the Chicago Board of Trade's, CBT, proposal to establish a night trading session when the commission meets Wednesday, CFTC officials said. CBT has proposed starting an evening trading session between 1800 and 2100 local time in Treasury bond and Treasury note futures and options on the two futures contracts. The exchange hopes to launch the experiment April 30. While CFTC staff have raised numerous questions about how the evening session will operate, they have not discovered any major obstacle to approval, CFTC sources said. "We are not anticipating any problems with approval," a CBT official said. CBT President Thomas Donovan and CBT Chairman Karsten Mahlmann have been in the Far East this month to drum up support for the night session. Reuter 

INTERNATIONAL BUSINESS MACHINES CORP <IBM> NET

1st qtr Shr 1.30 dlrs vs 1.65 dlrs Net 785 mln vs 1.02 billion Gross income 10.68 billion vs 10.13 billion Avg shrs 604.6 mln vs 615.6 mln NOTE: Pretax net 1.34 billion vs 1.83 billion. Sales 6.50 billion vs 6.10 billion, maintenance gross income 1.95 billion vs 1.77 billion, program products gross income 1.40 billion vs 1.15 billion and rentals and other services 825 mln vs 1.10 billion. Reuter 

USAIR <U> REPORTS FINAL PRORATION FACTOR

USAir Group Inc said, in announcing the final proration factor for its tender offer for Piedmont Aviation Inc <PIE>, that 17.0 mln shares, or 90 pct of the shares were validly tendered. USAir said it has purchased and will pay for 9.3 mln shares, representing about 55 pct of those tendered. Reuter 

MORE BRITISH GOLD ARTICLES HALLMARKED

The number of British gold articles hallmarked during the first quarter of this year rose by more than 11 pct on the corresponding period last year, figures released by the Assay Offices of Great Britain show. More than 2.5 mln British items were hallmarked during the quarter, up 11.1 pct on the same year ago period. The four Assay Offices also marked 832,222 foreign gold articles, up 2.5 pct on last year. In weight terms the 7.19 mln grams of British gold assayed was a 15.3 pct increase, while the 2.95 mln grams of foreign gold represented a rise of 3.1 pct. British silver goods assayed totalled 698,132, an increase of 6.2 pct but only 78,457 foreign items were marked, a fall of 11.1 pct. A total of 10,968 kilos of silver were assayed, an 11.1 pct rise. The number of platinum items marked fell 12.5 pct to 1,785, while in weight terms the total slipped 8.1 pct to 9,849 grams. A spokesman for the Assay Offices of Great Britain said he was particularly encouraged to see the percentage increase for British manufactured goods. Reuter 

TEXACO <TX> USES BANKRUPTCY COURT TO BUY TIME

Texaco Inc.'s plunge into bankruptcy to shield it from posting a bond in its 10.53 billion dlr legal battle with Pennzoil Co. <PZL> is a strategy that will give it breathing room until the fight over the 1984 acquisition of Getty Oil Co. winds its way up to the U.S. Supreme Court, analysts said. Texaco, the nation's third-largest oil company, filed for protection under Chapter 11 of the U.S. bankruptcy code earlier today, saying it had no choice because of Pennzoil's refusal to negotiate a reasonable settlement. But unlike most Chapter 11 cases, the Texaco proceeding should not result in a major reorganization of the company or affect its daily business operations, several experts said. "This is another piece of financial history," Sanford Margoshes, an analyst with Shearson Lehman Brothers, said of the bankruptcy filing. "What Texaco is doing is buying time to fight its battle in the courts. They have high hopes they will be upheld if the case goes all the way to the U.S. Supreme Court." Margoshes said he did not anticipate any significant changes in Texaco's oil exploration and production business because the bankruptcy filing affects only about four pct of the giant oil company's 32.6 billion dlrs in annual revenues. Texaco executives said the bankruptcy filing would effectively halt payments of stock dividends and repayment of its 6.8 billion dlr debt, but added that the company's assets far exceeded its liabilities. "Texaco's cash flow is at a very respectable rate of about 15 dlrs per share annually," Margoshes said. "Obviously, the point of Chapter 11 was not so much seeking protection from creditors as it was seeking protection from the predator Pennzoil." The two companies have been locked in an acrimonious struggle since a Texas state court jury in November 1985 ordered Texaco to pay Pennzoil 10.53 billion dlrs for improperly interfering with Pennzoil's planned acquisition of Getty Oil Co. In a major setback for Texaco last week, the U.S. Supreme Court said Texaco must abide by Texas state law that requires posting a bond for the full amount of the judgment while the merits of the case were appealed. Although a Texas appeals court hearing was scheduled Monday (April 13) on Texaco's motion to reduce the amount of the bond required under state law, Texaco elected not to risk losing the important court ruling that could have required it to post more than 10 billion dlrs in collateral. The bankruptcy filing, analysts said, effectively freezes all of Texaco's obligations while it continues to appeal the merits of the Pennzoil lawsuit. "This is a drastic measure," said Rosario Ilacqua, an analyst with L.F. Rothschild in New York. "But it's also an indictment of the legal system in this country in that Texaco was forced to seek bankruptcy when it couldn't get a fair hearing." Ilacqua predicted that the Texas jury judgment would ultimately be overturned or whittled down from its original 10.53 billion dlrs, an amount that is increasing by about 2.5 mln dlrs in interest accumulated daily. Texaco has contested the ruling, insisting that Pennzoil did not have a valid contract under New York state law to acquire Getty Oil. Suggestions by some experts that the Texaco bankruptcy might be an incentive for Pennzoil to lower its settlement demands, which are widely believed to be between 3 billion and 5 billion dlrs, were discounted by indignant Pennzoil executives. "I think it makes it much more difficult to settle," said Baine Kerr, Pennzoil's retired president who has acted as the company's chief negotiator in the Texaco litigation. "I think that's one of the main reasons they did it." Joseph Jamail, a Houston lawyer for Pennzoil, said the company had made its latest settlement offer to Texaco on Saturday and was taken by surprise when Texaco filed for bankruptcy. He declined to reveal the amount of the proposal, citing a confidentiality agreement between the two companies. "Texaco told us they would get back to us but instead they chose to go to bankruptcy court," Jamail said. "This was an irresponsible and unneeded move." Ilacqua also said the bankruptcy filing appeared to eliminate any chance of settlement in the near-term. "There have been some crazy numbers floating around in settlement discussions," Ilacqua said. "I think 1 billion dlr settlement would be more than adequate for Pennzoil. I don't know if that Texas jury really understood what money is. They gave Pennzoil an astronomical judgment." Analysts said they expected Texaco stock, which closed Friday at 31 and 7/8, to slip to about 25 when the New York Stock Exchange opened Monday morning. Lawyers for Pennzoil said they believed the company would prevail in court appeals, adding that Texaco's assets were ample enough to ultimately pay the Pennzoil judgment in full. Reuter 

SWISS SIGHT DEPOSITS FALL 4.64 BILLION FRANCS

Sight deposits of commercial banks at the Swiss National Bank fell 4.64 billion Swiss francs to 7.88 billion in the first 10 days of April, the National Bank said. Foreign exchange reserves rose by 9.4 mln francs to 33.12 billion. Sight deposits are an important measure of money market liquidity in Switzerland. The National Bank said banks repaid around 5.8 billion francs of traditional central bank credit taken out to meet their end-of-quarter liquidity requirements. This was partially offset by new swap arrangements. Bank notes in circulation fell 440.2 mln francs to 24.48 billion while other deposits on call at the National Bank -- mainly government funds -- fell 840.5 mln francs to 941.5 mln. REUTER 

U.K. MONEY MARKET GIVEN FURTHER 68 MLN STG HELP

The Bank of England said it provided the market with a further 68 mln stg assistance this afternoon, bringing its total assistance on the day to 143 mln stg. Shortly before, the Bank said it had revised its estimate of the shortage up to 450 mln stg from the earlier forecast of 400 mln. During the afternoon, the bank bought 22 mln stg of band two bank bills at 9-13/16 pct and two mln stg of local authority bills plus 44 mln stg of bank bills in band four at 9-11/16 pct. These rates were in all cases unchanged from previous intervention levels. REUTER 

GOODYEAR <GT> PREDICTS FIRST QUARTER NET

Goodyear Tire and Rubber Co said it expects to report earnings from continuing operations of over one dlr per share on 71.3 mln average shares outstanding. In last year's first quarter the company lost 60.0 mln dlrs or 55 cts per share on 108.4 mln shares outstanding, after a 110.8 mln dlr writedown of oil reserves of its Celeron Corp unit. Goodyear said it will report first quarter results April 27. Goodyear chairman Robert E. Mercer also told the annual meeting that unless there is a major downturn in the economy, it expects to work its debt down to normal levels in three years through its restructuring and cash flow from improved margins. The company set up its restructuring program to fend off a hostile takeover attempt by Sir James Goldsmith. As part of the restructuring, Goodyear executed a major stock buyback program that resulted in an increase in its debt. Reuter 

TAIWAN ANNOUNCES NEW ROUND OF IMPORT TARIFF CUTS

Taiwan announced plans for another round of import tariff cuts on 862 foreign goods shortly before trade talks with Washington which officials described as a move to help balance trade with the United States. Wang Der-Hwa, Deputy Director of the Finance Ministry's Customs Administration Department, on Saturday told reporters the list of products included 60 items asked by Washington. He said the ministry sent a proposal to the cabinet that the tariffs on such products as cosmetics, bicycles, apples, radios, garments, soybeans and television sets be cut by between five and 50 pct. The cabinet was expected to give its approval next Thursday and the new tariff cuts would be implemented possibly starting on April 20, he added. Reuter 

CHINA AND PORTUGAL SIGN MACAO DEAL

Prime Ministers Zhao Ziyang of China and Anibal Cavaco Silva of Portugal signed an agreement to end more than four centuries of Portuguese rule over the territory of Macao and return it to Chinese control in 1999. Macao will become a special administrative region on December 20, 1999, retaining a high degree of autonomy except in foreign affairs and defence. Its capitalist system is to remain intact for 50 years under an arrangement similar to the one that will return Hong Kong to China from Britain in 1997. China hopes to win back the Nationalist-ruled island of Taiwan under the same "one country, two systems" formula. Reuter 

HOG AND CATTLE SLAUGHTER GUESSTIMATES

Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 280,000 to 300,000 head versus 294,000 week ago and 303,000 a year ago. Cattle slaughter is guesstimated at about 120,000 to 126,000 head versus 120,000 week ago and 124,000 a year ago. Reuter 

TRADE ISSUES STRAINING EC'S PATIENCE WITH JAPAN

Member states of the European Community are starting to run out of patience with Japan which they believe has repeatedly promised major initiatives to open its market to imports, but as often made only minor moves. Diplomatic sources here said several recent actions by EC countries bear witness to a new disillusionment with the willingness, or at least the ability, of the Japanese government to reduce its massive trade surplus with the EC. However, they said an all-out trade war may be far off, as EC states know they would suffer almost as much as Japan. Senior EC diplomats gave a generally favourable reaction to an EC executive commission proposal under which the EC could raise tariffs on a range of Japanese products if the U.S. Carries out a threat to make a similar move on April 17. The EC tariffs, which would involve renouncing obligations entered into with the world trade body GATT, would be designed to stop a diversion of exports to the EC market from that of the U.S. The diplomats were meeting as Tokyo announced that the EC's trade deficit with Japan reached a record 2.13 billion dlrs in March, up from 1.94 billion in February. Reuter 

EC COULD DECIDE ON JAPAN TRADE MOVES IN LATE MAY

The European Community (EC) has effectively given Japan six weeks to take moves to open its market to imports before it decides on possible tough retaliatory trade measures, EC diplomats said. They said EC foreign ministers will meet on May 25 and 26 to review the state of trade relations between the two sides. The EC executive commission was asked by representatives of member states on Friday to propose a renunciation of some EC pledges to the world trade body, GATT, unless there are "adequate and early measures to open the Japanese market." Such a renunciation would be the first step to imposing stiff increases in duties, or quantitative limits, on Japanese exports. The diplomats said it was unlikely that the issue would be discussed in detail at the next meeting of EC foreign ministers on April 27 and 28 in Luxembourg as time was needed to prepare proposals for possible retaliatory action. They said the commission has powers to take some limited action before getting ministerial approval to prevent Japanese exports of electrical, photographic and other goods being diverted to Europe following of possible U.S. Tariff moves. In May, the ministers are also likely to discuss how to prevent Japan from getting an extra trading advantage as a result of Spain and Portugal joining the bloc, which obliges them gradually to reduce tariffs on many industrial goods. Japan's trade surplus with the Community has grown steadily, registering a record 2.13 billion dlrs in March. Reuter 

P.H. GLATFELTER <GLT> ACQUIRING ECUSTA

P.H. Glatfelter Co said it has reached an agreement to acquire all the capital stock of <Ecusta Corp> for 149,177,857 dlrs in cash. Glatfelter, a printing and writing paper maker, said Ecusta operates an uncoded three sheet and light-weight specialty paper mill in Pisgah Forest, N.C. The mill produces and converts paper products used by the doemstic and foreign tobacco industry. Glatfelter said it expects to close the deal by May 31. Reuter 

GREENWICH PHARMACEUTICALS COMPLETES PLACEMENT

Greenwhich Pharmaceuticals Inc <GRPI.O> said it has completed a private placement of its common stock, generating more than eight mln dlrs in net proceeds. These funds, together with the two mln dlrs in cash currently held by the company, will be used to complete its Therafectin rheumatoid arthritis drug development program and to develop other drugs, the company said. Reuter 

NCR CORP 1ST QTR SHR 65 CTS VS 51 CTS

BROWNING-FERRIS <BFI> UNIT SEES EPA LAWSUIT

CECOS International Inc, a subsidiary of Browning-Ferris Industries Inc, said it expects the U.S. Environmental Protection Agency to sue the company, claiming non-compliance with regulatory requirements at CECOS' Livingston, Louisiana hazardous waste treatment plant. CECOS said the EPA advised the company it intendend to seek a penalty in the range of five mln dlrs to 10 mln dlrs. CECOS said it considered the proposed penalty to be "grossly excessive" and has offered 125,000 dlrs in earlier negotiations to settle the disputed issues. CECOS said it believes strongly that the EPA's claims and proposed remedies concerning the Livingston waste disposal site are unreasonable. The company also said its 125,000 dlr settlement offer was consistent with monetary penalties previously accepted by the EPA concerning disputes over other hazardous waste treatment, storage and disposal operations. CECOS said major issues of the dispute include the Livingston waste site's analysis and operation plans, inspection records and freeboard limits of rainwawater holding impoundments. Reuter 

FIRST MARATHON <FMS.A.TO> PLANS STOCK SPLIT

First Marathon Inc said it planned a two-for-one stock split, to be effective on shareholders' approval at the June 4 annual meeting. The financial services company said it also completed the previously reported 29.6 mln dlr private placement of 1.5 mln non-voting preferred shares convertible one-for-one into non-voting class A shares. Reuter 

U.S. BANCORP <USBC> 1ST QTR NET

Shr 66 cts vs 57 cts Net 20.0 mln vs 17.1 mln Avg shrs 30.3 mln vs 30.0 mln Reuter 

IBM <IBM> HAS HIGHER SHIPMENTS, COSTS IN QTR

International Business Machines Corp said shipments and revenues were higher in the first quarter, but net earnings fell 22.8 pct in part due to higher expenses. IBM said net income fell to 785 mln dlrs or 1.30 dlrs a share from 1.02 billion dlrs or 1.65 dlrs on about 1.8 pct fewer shares outstanding. While total sales and income rose 5.5 pct to 10.68 billion dlrs from 10.13 billion dlrs, costs and expenses rose 12.1 pct to 9.61 billion dlrs from 8.57 billion in the quarter, the computer maker said. The company said it continues to take actions to make it more competitive, including cost and expense reduction measures. "Although the worldwide economic situation remains unsettled, there are some encouraging signs in our business," IBM said in a statement. "In addition to the increase in first quarter shipments, we have announced new offerings in our large processor and personal computing product lines," it said. "We have yet to fully benefit from our recent product announcements, retirement incentives and other resource balancing measures, and we expect these actions will have a more significant impact as 1987 progresses," the company added. It said it expects more than 12,000 U.S. employees to take advantage of the retirement incentives announced last year. Pretax earnings fell 27 pct to 1.34 billion dlrs from 1.83 billion, IBM said. Pretax margins slipped to 12.5 pct in 1987 from 18.1 pct in 1986, it said. Reuter 

ROTTERDAM GRAIN HANDLER SAYS PORT BALANCE ROSE

Graan Elevator Mij, GEM, said its balance in port of grains, oilseeds and derivatives rose to 146,000 tonnes on April 11 from 111,000 a week earlier after arrivals of 404,000 tonnes and discharges of 369,000 tonnes last week. The balance comprised 21,000 tonnes of grains plus oilseeds and 125,000 tonnes of derivatives. This week's estimated arrivals total 274,000 tonnes, of which 71,000 are grains/oilseeds and 203,000 derivatives. The figures cover around 95 pct of Rotterdam traffic in the products concerned. Reuter 

LINDBERG CORP <LIND> 1ST QTR NET

Shr 15 cts vs 15 cts Net 689,561 vs 784,088 Sales 19.2 mln vs 19.8 mln Avg shrs 4.7 mln vs 5.3 mln NOTE: 1986 net includes a gain of 108,000 dlrs or two cts a share from proceeds from the sale of property. Reuter 

BELGELECTRIC RAISES 300 MLN LUXEMBOURG FRANCS

Belgelectric Finance BV is raising 300 mln Luxembourg francs through a five year, non-callable bullet bond carrying a 7-1/4 pct coupon at par, lead manager Banque Internationale a Luxembourg SA (BIL) said. The private placement for the Belgian utilities' finance company is for payment on May 26 and coupon payments are annually on May 27. Fees total 1-3/4 pct and the issue is guaranteed by the Belgian utilities, Intercom, Ebes and Unerg. REUTER 

GERMAN INSTITUTES WARN ON MONEY SUPPLY

Four of West Germany's five leading economic research institutes warned that excessive monetary growth threatened a resurgence of inflation. But in a dissenting view the DIW institute in West Berlin, echoing recent statements by leading Bundesbank officials, said the expansion seen over the last 1-1/2 years did not necessarily threaten stability. The five institutes issued a joint spring report, in which three -- Kiel, Hamburg and Essen -- forecast a two pct rise in GNP in 1987, while West Berlin and Munich predicted one pct. The four institutes said an expansive policy was welcome in view of the slowdown in economic activity. But experience has shown that strong monetary growth eventually leads to a price rise which undoes the beneficial effects of monetary policy. Given virtual zero inflation in West Germany such fears may seem exaggerated, they said. "But it has often turned out in the past that the price climate can quickly deteriorate, forcing the central bank into a restrictive policy," they said. The economic costs of a preventive stability policy are less than fighting inflation once it has taken hold, they said. The four institutes disputed the view that monetary expansion would slow of its own accord in 1987 as domestic investors switch liquidity into longer term capital market investments following lower interest rates. "Such redispositions may temporarily dampen the expansion of central bank money stock, but do not automatically lead to a smaller expansion of money supply," they said. A return to growth and stability did not require spectacular central bank moves, but could be done quietly with open market operations and repurchase pacts, which would avoid an interest rate rise by dampening inflationary expectations. The DIW institute said monetary policy should not be focused simply on growth of production potential. Because of uncertainty about exchange rate developments and economic weakness other factors should be taken into account. Monetary policy should aim for further interest rate cuts and avoid rises to boost the economy and discourage revaluation speculation. Recent strong monetary expansion was not a threat in itself to price stability. The 1979/81 inflation following strong 1977/78 money growth reflected other causes, such as rising oil prices and the falling mark. REUTER 

NCR CORP <NCR> 1ST QTR NET

Shr 65 cts vs 51 cts Net 61.5 mln vs 50.2 mln Revs 1.12 billion vs 960.8 mln Avg shrs 95.3 mln vs 99.4 mln Reuter 

GERMAN PRODUCER PRICES FALL 0.1 PCT IN MARCH

West German producer prices fell 0.1 pct in March compared with February to stand 3.9 pct lower than in March last year, the Federal Statistics Office said. In February, producer prices fell 0.3 pct from January and dropped 4.2 pct from their levels a year earlier. The Statistics Office said producer prices for natural gas had fallen 3.0 pct in March against February, heavy heating oil prices were 3.2 pct down, liquefied gas prices fell 14 pct and coffee was 7.4 pct cheaper. REUTER 

USDA CHANGES LOW PROTEIN WHEAT TERMINAL PRICES

The U.S. Agriculture Department has lowered its ASCS terminal prices for low protein hard red winter and hard red spring wheat at a number of locations, a senior USDA official said. USDA reduced the price of hard red winter wheat at Kansas City and Texas by six cents, at Minneapolis and Duluth by 32 cents and at St Louis by nine cents, Ralph Klopfenstein, deputy administrator of commodity operations at the Agricultural Stabilization and Conservation Service, said. The department also lowered the terminal price of hard red spring wheat at Minneapolis and Duluth by 32 cents, he said. In addition, USDA cut the Pacific Northwest price of hard red spring wheat by 31 cents, USDA officials who asked not to be identified said. The officials said hard red spring wheat prices at Chicago, Denver and Toledo were adjusted by about the same amount as at Pacific Northwest, Duluth and Minneapolis. The price changes should lead to a pickup of PIK and roll activity, Klopfenstein said. The price change was decided upon last week and will be effective today, he said. Klopfenstein also said the department raised the premiums on high protein wheat to offset the drop in low protein wheat prices, meaning the net price on any wheat commanding a protein premium would remain unchanged. Reuter 

ALCIDE <ALCD.O> SAYS TESTS ENCOURAGING

Alcide Corp said preliminary experimental results obtained using a formulation it has developed for the disinfection of blood platelets indicate feasibility for the approach. The company notes there have been recent increases in reports of transmission of microbial infections in recipients of platelets, which are used in blood transfusions in patients undergoing cancer therapy. The company said related whole blood tests with baboon blood showed no significant loss of in vitro activities or survival. The company said as a followup to the studies on thje bacterial disinfection of platelets, it is planning to evaluate the system for the inactivation of several viruses in the presence of platelets. The viruses include Herpes Simplex Virus Type I, cytomegalovirus and Human Immunodeficiency Virus, which is responsible for AIDS. Reuter 

TEXACO CANADA <TXC> UNAFFECTED BY LEGAL MOVE

Texaco Canada Inc said its business operations, its plans and financial integrity are unaffected by yesterday's move by 78 pct-owner Texaco Inc <TX> to file for protection under U.S. bankruptcy law. Texaco Canada chief executive Peter Bijur said in a statement that "it is business as usual for us on Monday morning." Texaco Inc added in a statement that it "has never operated outside the U.S., and relations with all foreign governments and activities of interest to them and their citizens are not affected" by its legal dispute with Pennzoil Co <PZL>. Reuter 

FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES

The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-140 days 5.00 pct 5.00 pct 30-179 days 141-160 days 6.13 pct 6.08 pct 180-200 days 161-182 days 5.00 pct 5.00 pct 201-274 days 183-200 days 6.17 pct 6.18 pct 275-290 days 201-360 days 5.00 pct 5.00 pct 291-360 days Reuter 

GALILEO ELECTRO-OPTICS CORP <GAEO> 2ND QTR

Shr 51 cts vs 40 cts Net 1.4 mln vs 851,000 Revs 9.8 mln vs 6.5 mln Six months Shr 74 cts vs 50 cts Net 2.0 mln vs 1.1 mln Revs 17.7 mln vs 11.3 mln Avg shrs 2.7 mln vs 2.1 mln NOTE:Quarter ended March 31. 1987 six months includes charge of 115,000 dlrs due to reversal of investment tax credits. Reuter 

GREAT LAKES FOREST PLANS 390 MLN DLR ONTARIO EXPANSION

BOSTON FIVE <BFCS.O>, NEWORLD <NWOR.O> TO MERGE

Boston Five Cents Savings Bank said it and Neworld Bank for Savings have agreed to merge, forming a new holding company, Boston Five Bancorp. Boston Five said the proposal calls for its holders to receive 1.163 shares of the new company's stock for each share now held and for Neworld Bank holders to recieve one share for each share held in a tax free exchange. Boston Five said the planned merger with Newworld Bank for Savings Will create the largest savings bank in Massachusetts and the third largest in New England with combined assets of 3.1 billion dlrs. Boston Five chairman Robert J. Spiller said "There is a natural fit between both banks. We consider this to be a merger of equals." Spiller will become Chairman of Boston Five Bancorp and Neworld president James M. Oates will be president and chief executive officer. Boston Five said its President, Peter J. Blampied, will become vice chairman and chief operating officer of the holding company. The board of the holding company will have an equal number of directors from each institution. "Unlike many recent combinations, this merger has no acquisition premium associated with it," Blampied said. Boston Five has assetsof 1.9 billion dlrs and 35 officers. Neworld has assets of 1.2 billion dlrs and 24 officers in Massachusetts. It also has a loan center in New Hampshire. Reuter 

COOPERVISION <EYE> FORMS RECAPITALIZATION PLAN

Coopervision Inc said it is preparing a recapitalization plan, which includes a common stock repurchase program and an exchange of debt securities for common stock. The plan, along with a proposal to change its name to Cooper Cos Inc, will be submitted for shareholders' approval at the company's annual meeting on June 22. The meeting had been postponed from its original date of May 14 in order to let management review recapitalization options, it said. In addition, Coopervision said operating income in its current fiscal quarter ending April 30 is expected to show an improvement over its prior fiscal quarter's 82.5 mln dlrs and its year ago quarter. Income from continuing operations was not immediately availalbe for the prior year's second quarter in which it reported a net loss of 14.9 mln dlrs. At a Drexel Burnham Lambert Investor Conference, Coopervision chairman Parker Montgomery said, as previously announced, he will listen to any bid that makes sense for shareholders. He also said Coopervision's stock fell in 1986 due to its second quarter loss, rumors of a liquidation at 30 dlrs and 35 dlrs a share, and Ivan Boesky's subsequent sale of his position. "The stock dropped six dlrs in three days after Boesky sold his position and has never recovered," Montgomery said. The company's stock is currently trading at 19-1/4. Montgomery further told the conference, "Don't be an investor in the stock on the basis of any short term recovery in operating or net income in 1987 and 1988." "Our concentration is on maintaining or increasing market share in our core businesses this year and next, regardless of the impact to the bottom line," he said. Reuter 

COLOMBIA JUNE COFFEE REGISTRATIONS OPENED

Colombia has opened coffee registrations for June shipment with no limit set for private exporters, as in April and May, a National Coffee Growers' Federation official said. Colombia has sold an average of 900,000 bags per month since the beginning of the calendar year. Reuter 

U.S. FEDERAL HOME LOAN BANKS SET OFFERING TOTALING 2.135 BILLION DLRS

CANADA LEADING INDICATOR UP 0.4 PCT IN JANUARY AFTER 0.4 PCT DECEMBER RISE - OFFICIAL

SPANISH MONEY SUPPLY GROWING AT DOUBLE TARGET PACE

Spain's principal measure of money supply, the broad-based liquid assets in public hands (ALP), grew at an annualised rate of 17.6 pct in March against 16.6 pct in February and 19.6 pct in March last year, provisional Bank of Spain figures show. The bank's target range for this year is 6.5 to 9.5 pct, and Bank of Spain Governor Mariano Rubio said this month he was aiming for the lower end of that range. ALP grew by 11.4 pct during 1986. REUTER 

REEBOK INTERNATIONAL LIMITED <RBK> 1ST QTR

Shr 72 cts vs 52 cts Net 38.6 mln vs 25 mln Revs 281.8 mln vs 174.5 mln Avg shrs 53.5 mln vs 48.2 mln NOTE: 1987 1st quarter amounts do not includes sales of AVIA Group International Inc, acquired at the end of the first quarter. 1987 1st quarter revenues include Rockport revenues of 31 mln dlrs. 1986 1st quarter amounts do not include Rockport, as Reebok acuqired that company in October 1986. Reuter 

BLOUNT INC <BLT> 4TH QTR NET

Oper shr 16 cts vs three cts Oper net 1,930,000 vs 391,000 Revs 313.9 mln vs 308.9 mln Avg shrs 11.9 mln vs 12.0 mln Year Oper shr 60 cts vs 27 cts Oper net 7,215,000 vs 3,340,000 Revs 1.23 billion vs 1.16 billion Avg shrs 11.9 mln vs 12.0 mln NOTE: Prior year net excludes gains 4,896,000 dlrs in quarter and 8,873,000 dlrs in year from termination of overfunded pension plans. Backlog 1.0 billion dlrs vs 942 mln dlrs. Reuter 

U.K. MONEY MARKET GIVEN LATE HELP OF 210 MLN STG

The Bank of England said it gave the market late assistance of around 210 mln stg, bringing its total help on the day to some 353 mln stg. This compares with the Bank's estimate of the liquidity shortage of around 450 mln stg, raised from its early forecast of 400 mln stg. REUTER 

GIANT BAY <GBYLF> IN IDAHO GOLD VENTURE

Giant Bay Resources Ltd said it signed an agreement in principle with Hecla Mining Co for an operating joint venture on Hecla's Stibnite, Idaho, gold deposit. Giant Bay said if its bioleaching technology is used for ore processing, it will have the right to acquire a working interest in the property. It said it may spend as much as three mln U.S. dlrs, excluding capital costs to bring the mine into production. It said drilling has indicated substantial sulphide reserves with a gold grade of about 0.1 ounce a ton, and early tests show the gold ore responds to bioleaching. Reuter 

BLUE ARROW TO ACQUIRE RICHARDS CONSULTANTS

Blue Arrow PLC said it signed an agreement to acquire Richards Consultants Ltd for 29 mln dlrs in cash and securities. Richards is a privately-owned New York-based executive recruitment firm. As part of the agreement, Blue Arrow said the four principal shareholders who manage Richards will enter into long-term service contracts with it. The agreement is subject to approval of Blue Arrow shareholders. Reuter 

MERRY-GO-ROUND <MGRE> SETS STOCK SPLIT

Merry-Go-Round Enterprises Inc said its board declared a three-for-two stock split, payable May One to holders of record April 17. Reuter 

ASARCO UPS U.S. LEAD PRICE 0.50 CT TO 27 CTS

Asarco Inc said it is increasing its base spot sales price for refined lead by one-half cent to 27.0 cents a lb, FOB, delivered in carload lots, effective immediately. Reuter 

ENEL ISSUES 15 BILLION YEN EUROBOND

Italy's state-owned Ente Nazionale per l'Energia Elettrica (ENEL) is issuing a 15 billion yen eurobond due May 27, 1994 paying 4-3/4 pct and priced at 101-7/8 pct, joint-lead bookrunner IBJ International Ltd said. Morgan Stanley International is the other joint-lead bookrunner and appears on the left in documentation. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is May 27. REUTER 

IRVING BANK CORP 1ST QTR SHR 1.51 DLRS VS 1.62 DLRs

SAUDI ARABIA LIBERALISES BANKING SYSTEM

Saudi Arabia has speeded up reform of its financial system with a package of measures designed to boost the economy and open up the Kingdom to the lucrative world of investment banking. Bankers in Saudi Arabia detect a fundamental shift in policy stemming from a need to tackle the underlying contradiction between an Islamic legal framework and western banking system. One senior banker in Jeddah said: "There is a new wind blowing... Saudi Arabia is moving on many fronts in a manner that is extraordinarily aggressive." The speed of reform, begun last year but now gathering pace, has surprised bankers who have had to contend with a financial system that restricted internationalisation of the riyal and a religious court system that made debt collecting difficult. Saudi banks, once the most profitable in the world, have generally reported falling profits for 1986 -- the fourth successive year of decline -- as loan loss provisions ate into already dwindling earnings. Bankers say the Saudi Finance Ministry and Saudi Arabian Monetary Agency (SAMA) seem to have developed a new strategy although it remains to be seen how it will be implemented. Reform started in 1986 with measures to boost previously dormant stock trading, but took off in earnest this year. -- From January 1, SAMA liberalised the money market, giving banks greater access to liquidity aid via repurchase agreements. -- From March 22, the Finance Ministry abolished withholding tax on funds borrowed by Saudi banks abroad. -- From the same date, banks were notified of a new committee to be set up under the auspices of SAMA to hear bank disputes with creditors over non-payment of loans. -- Also from the same date, banks were allowed to use mortgages as collateral for lending, banned since 1981. -- Within a few weeks, the Kingdom's first stock market trading floor is expected to be opened. Housed in central Riyadh in the building of the Saudi Industrial Development Fund, the floor will initially be used to trade shares on an auction system. Staff from each of the 11 commercial banks have been trained ahead of the launch and a new computer network has been set up. One banker said: "The abolition of withholding tax will give banks the opportunity to participate in new instruments such as interest rate or currency swaps. At last SAMA and the Finance Ministry are opening up markets for investment banking." Bankers say Saudi authorities appear to have been shocked into reform by pressure from banks and alarm at bank reluctance to extend further loans to the private sector. Banks have lobbied hard for change, arguing that the religious, or Sharia, legal framework was inconsistent with the Kingdom's western banking system and made it nigh impossible for them to collect interest on bad loans through the courts. As a result, many banks had virtually stopped new lending, but found themselves cut off from world investment banking by a series of restrictions. Withholding tax made it punitively expensive to take part in interest rate or currency swaps. The private sector's frustration at the virtual standstill in bank lending overflowed at a businessmen's conference in the mountain resort in Abha last month and some powerful merchant families also called for change, bankers said. "Banks lobbied hard and had the ultimate weapon to force change -- they stopped lending," another banker said. "That was stifling growth of the economy." It is still unclear whether the new committee that will be set up to hear bank disputes with creditors will prove any more efficient than another non-Sharia system already in force, the Committees for the Settlement of Commercial Disputes (CSCDs). Some bankers believe the new committee, yet to be formed, will simply delay pending cases and force banks into a series of private deals with creditors. Nor is it clear what stance the new committee will take on interest payments, generally not recognised under Islamic law. But other bankers say the move is clear recognition by SAMA and the Finance Ministry that Sharia courts and the CSCDs were not the correct bodies for hearing bank disputes. Other reforms have been taken or are in the pipeline. Finance Minister Mohammed Ali Abal-Khail said in March that a new body would examine late government payments to contractors. In addition, further moves are under way to align business life to the Gregorian calendar year, with companies being urged to adopt it as their financial year. A black list of borrowers, started more than two years ago by banks, has recently been effectively sanctioned by SAMA, bankers say. Banks are now not permitted to lend or engage in securities transactions with any party on the list. REUTER 

GENERAL NUTRITION FILES FOR SECONDARY OFFERING OF EIGHT MLN COMMON SHARES

IRVING BANK CORP <V> 1ST QTR NET

Shr 1.51 dlr vs 1.62 dlr Net 28.6 mln vs 30.4 mln Assets 23.8 billion vs 20.9 billion Deposits 15.5 billion vs 14 billion Loans 13.8 billion vs 12 billion Reuter 

GENERAL NUTRITION <GNC> FILES FOR OFFERING

General Nutrition Inc filed a registration statement with the Securities and Exchange Commission for a secondary offering of eight mln common shares. All the shares are being sold by the estate of David Shakarian, the founder of the company. Kidder, Peabody and Co Inc will be the sole manager of the underwriting. The Shakarian estate owns 25.6 mln shares of General Nutrition. There are 33.1 mln shares outstanding. Reuter 

TEXACO NOT REQUIRED TO POST BOND IN APPEAL OF PENNZOIL JUDGMENT, COURT SAYS

O'SULLIVAN CORP <OSL> 1ST QTR NET

Shr 28 cts vs 32 cts Net 2,823,000 vs 3,216,000 Rev 47.9 mln vs 42.9 mln NOTE: The 1986 earnings per share adjusted for a four for three stock distribution paid May 1986. Reuter 

FRENCH 13-WEEK T-BILL AVERAGE RATE RISES TO 7.39 PCT FROM 7.36 PCT - OFFICIAL

PARK COMMUNICATIONS INC <PARC> 1ST QTR NET

Shr 15 cts vs 14 cts Net 2,028,000 vs 1,879,000 Revs 32.1 mln vs 29.5 mln Reuter 

NVHOMES <NVH> SETS SPLIT PAYMENT DATE

NVHomes LP said April 30 will be the distribution date for new units as a result of its previously-announced two-for-one split to unitholders of record April 20. Reuter