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CCC CREDIT GUARANTEES FOR RICE TO ALGERIA - USDA

The Commodity Credit Corporation, CCC, has authorized 3.0 mln dlrs in credit guarantees for sales of U.S. rice to Algeria for fiscal year 1987 under the Export Credit Guarantee Program, GSM-102, the U.S. Agriculture Department said. The additional guarantees increase the cumulative fiscal year 1987 program for sales of U.S. agricultural products to Algeria to 469.0 mln dlrs. To be eligible for the credit guarantee coverage, all sales under the new line must be registered and exported by September 30, 1987, the department aid. Reuter 

MGM/UA COMMUNICATIONS <MGM> 2ND QTR FEB 28 LOSS

Shr loss 34 cts Net loss 17.1 mln vs profit 10.1 mln Revs 106.2 mln vs 101.2 mln Six mths Shr loss 28 cts Net loss 14.4 mln vs profit 11.6 mln Revs 237.2 mln vs 179.5 mln Note: Company said year ago per share not given as not comparable due to certain allocations of expenses from the Turner Entertainment Group, not made in subsequent periods. 1987 results reflect the TBS merger agreement and operations of the company as independent agent. 1986 data includes extraordinary tax loss carryforward gains of 1,185,000 dlrs in qtr and six mths. Reuter 

<SPENCER COS> SUES CHASE MANHATTAN <CMB>

Spencer Cos Inc said it sued two Chase Manhattan Corp units for forcing Spencer and its subsidiaries to seek protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. The lawsuit, filed in the U.S. District Court for the District of Massachusetts, seeks 100 mln dlrs in actual damages, 300 mln dlrs in additional damages and recovery of attorney's fees. In the nine-count complaint, Spencer contends that Chase Manhattan Bank, while purporting to negotiate additional financing, inflated Spencer's accounts, dishonored its checks and seized 600,000 dlrs from its accounts without notification. The company said Chase then demanded immediate repayment of its 3.2 mln dlrs unsecured loan. The suit also names Chase National Corporate Services Inc as a defendant. The damages sought include a loss of about 40 mln dlrs on the liquidation of Spencer's Happy Legs Inc subsidiary, the footwear retailer said. Spencer said it has recovered more than 500,000 dlrs of the funds seized by Chase and has obtained financing from a leading Boston bank. Boston-based Spencer filed for Chapter 11 on Nov 19, 1986. Reuter 

HOMESTAKE MULLS BUYING ORE RESERVES

Homestake Mining Co is considering acquiring more gold ore reserves in addition to the company's exploration efforts, chief executive Harry Conger told Reuters in an interview. Conger said, "the move to consider acquisitions represents a change in the company's acquistions policy." Conger said all of Homestake's current cash position of 120 mln dlrs would be available to acquire reserves. In addition, Homestake has two lines of credit totaling 150 mln dlrs which have not been drawn on and could be used to finance an acquisition, he said. Conger said he anticipates 1987 exploration budget will be about the same as 1986 spending of 27.3 mln dlrs. Conger said exploration for precious metals may be slightly higher than last year's spending of 17.7 mln dlrs while oil and gas exploration spending will be slightly less than last year's 9.6 pct. Conger said he sees Homestake's 1987 gold production about the same as 1986 gold production of 669,594 ounces. However, 1987 first quarter production from its McLaughlin reserve will be about 10 pct lower than last year's 45,400 ounces due to start-up production problems. He said he believes gold prices will hold above the 400 U.S. dlr an ounce level for the rest of 1987. Reuter 

BELL ATLANTIC <BEL> UNIT TO SELL SERVICES, GEAR

Bell Atlantic Corp's Bell of Pennsylvania unit said federal regulators granted it interim permission to sell regulated telecommunications network services along with equipment provided by an unregulated Bell Atlantic unit. In January, the Federal Communications Commission ruled that Bell telephone companies could sell their telephone services in tandem with equipment provided by their unregulated equipment units. But the FCC stipulated that the Bell companies must comply with new accounting rules that separate the costs of regulated telephone service from those of unregulated businesses. Bell of Pennsylvnia said the FCC gave it interim relief to jointly market services and equipment until its accounting plan is approved by the commission. Reuter 

INTERFIRST CORP 1ST QTR LOSS 28 CTS VS PROFIT THREE CTS

KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE

OPEC's credibility faces fresh scrutiny in coming weeks amid signs of a significant rise in supplies of oil to international oil markets, the Kuwait daily al-Qabas said. In an article headlined, "Gulf oil sources say Middle East production up 1.4 mln bpd," it warned OPEC's official prices could face fresh pressure from international oil companies seeking cheaper supplies. It did not say whether only OPEC or both OPEC and other producers were behind the reported rise in Mideast output. Nor did it specify if the sources were official or other contacts. "The sources said the credibility of OPEC would come under fresh scrutiny from today (Monday), with activity in the European and American markets," the daily said. The sources were quoted as saying that after OPEC had in March demonstrated its commitment to quota agreements, some members had raised output last week. It gave no details. "Dealers in oil markets were now waiting to see if Opec was able to control production, or whether the days of cheating and producing over quotas has begun anew," it said. The sources warned that "maybe the (price of a) barrel of oil will fall below 18, perhaps 17.80 dlrs this week or next if there is no control on supplies," it said. "The sources believed a return of oil below 18 dlrs a barrel may open the doors for international oil companies to pressure OPEC over contract prices, similar to the struggle last March," it said, apparently referring to resistance by buyers to lift from Qatar unless it gave price discounts. "More than one official has warned OPEC would find its solidarity under scrutiny by the end of April or start of May," it said, noting demand usually fell with the onset of summer. Reuter 

WILLAMETTE INDUSTRIES <WMTT> 4TH QTR NET

Shr 90 cts vs 30 cts Net 22.9 mln vs 7,567,000 Sales 323.0 mln vs 272.1 mln Note: per share figures reflect April 25, 1986 five-to-three stock split. Full year figures not available. Reuter 

HUTTON <EFH> NAMES PERAS SENIOR VP

E.F. Hutton said it named Steven Peras, formerly vice president in charge of all spot trading for Irving Bank's <V> Irving Trust Co, senior vice president for worldwide foreign exchange trading. Peras, 30, will direct Hutton's foreign corporate and individual foreign exchange account development, and market-making in currencies for the firm on a worldwide basis, Hutton said. Hutton has foreign exchange trading operations in London and New York. Reuter 

MARINE MIDLAND BANKS INC 1ST QTR 1.74 DLRS VS 1.89 DLRS

AMERICAN CENTURY <ACT> RESTATES EARNINGS

American Century Corp said it has restated its earnings for the fiscal year ended June 30, 1986 to provide an additional five mln dlrs to its loan loss allowance, causing a restated year-end net loss of 14,937,000 dlrs, instead of 9,937,000 dlrs. The company said the change came after talks with the Securities and Exchange Commission on the company's judgement in considering the five mln dlrs collectible. In the note to its 1986 financial statement, American Century said it considered the five mln dlrs collectible, making its loan loss provision less than required. The company said in spite of the SEC decision, it still feels its allowance for possible loan losses at June 30, 1986 was adequate and that it has considered all relevant information to determine the collectibility of the five mln dlr receivable. But, it said continued disagreement with the SEC staff would not be in its best interest. Reuter 

CANADA PLANS ONE BILLION DLR BOND ISSUE

Canada plans a three part, one billion dlr issue Tuesday, which will be dated and delivered May 1, the finance department said. The bonds will be issued as follows. - 8-1/2 pct bonds due March 1, 1992, - 8-3/4 pct bonds due June 1, 1996, - 9 pct bonds due March 1, 2011. The nine pct bonds will be issued to a maximum of 325 mln dlrs. The Bank of Canada will buy a minimum of 100 mln dlrs of the new issue, including five mln dlrs of the 2011 maturity. Reuter 

CANADIAN IMPERIAL CONSIDERS BRAZIL LOAN STATUS

(Canadian Imperial Bank of Commerce) is considering classifying its 1.2 Canadian billion dlrs in loans to Brazil as non-accrual and will decide whether it will do so in June, bank chairman R. Donald Fullerton told reporters after a business speech here. Fullerton said the loans would be listed as non-accrual in financial results for the second quarter ending April 30. (Bank of Montreal), which has loaned about two billion Canadian dlrs to Brazil, the largest amount of any Canadian bank, previously said it is also considering declaring the loans as non-accrual in second quarter results. Under Canadian guidlines, loans are classified as non-accrual when there are indications the bank will lose interest or principal on the loan or when it believes it will be difficult to fully settle the account within a reasonable period. Several U.S. banks have already announced they plan to place their loans to Brazil on non-accrual lists. Fullerton also said Canadian Imperial still plans to enter the brokerage business this year after the federal government introduces laws that will let banks expand their actitivities. "We'll be looking at anything in the Canadian market at this point in time--from the very biggest (brokerage company) to the very smallest," Fullerton told reporters. Fullerton said he considers buying seats on stock exchanges "a sensible move". Fullerton declined to comment on TransCanada Pipelines Ltd (TRP)'s bid for Dome Petroleum Ltd (DMP). Canadian Imperial has about 900 mln Canadian dlrs in outstanding loans to Dome, making it one of the oil company's two largest Canadian creditors. The bank has a joint director on Dome's management board, Fullerton said. Fullerton said he did not have enough information on the bid to evaluate its effect on Dome or its debt restructuring talks. Fullerton called in a prepared speech for full reciprocity in any free-trade agreement with the U.S. involving financial services. "There are strong indications that financial services are being bargained away in the current free trade negotiations between Canada and the United States with no requirement of full reciprocity," Fullerton said. He said U.S. banks given equal privileges with Canadian banks here would be able to operate throughout the country while Canadian banks in the U.S. would be subject to approval and regulation by each state. Reuter 

SOUTHERN UNIT <SO> RATINGS AFFIRMED BY MOODY'S

Moody's Investors Services Inc said it affirmed the ratings on 5.3 billion dlrs of debt of Georgia Power Co, a unit of The Southern Co. Affirmed were the Baa-1 first mortgage bonds, secured pollution control revenue bonds and cumulative preferred stock, and the Baa-2 unsecured pollution control revenue bonds. Moody's said, however, that it may review the company's debt ratings pending a rate decision by the Georgia Public Service Commission due by October. If the rate order is unconstructive, Moody's review would have negative implications at that time, the agency noted. Reuter 

INTERFIRST CORP <IFG> 1ST QTR LOSS

Shr loss 28 cts vs profit three cts Net loss 18.9 mln vs profit 2.1 mln Assets 16.7 billion vs 19.8 billion Deposits 14.1 billion vs 16.2 billion Loans 12.2 billion vs 14.4 billion Note: Net includes securities gains of 20.4 mln vs 13.1 mln. Net charge-offs totaled 41.9 mln vs 42.2 mln, while provisions for loan losses was 56.6 mln vs 52.2 mln. Non-performing assets totaled 1.24 billion vs 799 mln. Reuter 

COMPUTER <CPTLA.O> FOUNDER RESIGNS

Computer Telephone Corp said Stephen Ide, its founder and president, resigned for personal reasons, but will remain a consultant with the company. It said James Mahon, executive vice president, has been elected president effective immediately. Reuter 

AMERICAN EXCHANGE ELECTS 10 BOARD MEMBERS

The American Stock Exchange said 10 governors were elected to its 25-member board of governors at the annual membership meeting today. The exchange said there were eight new members, including five from the public sector, among the ten elected to the board. Elected to three-year terms from the public sector were Ernst and Whinney Chairman Ray J. Groves, Hasbro Inc Chairman Stephen D. Hassenfeld, Bowery Savings Bank Chairman Richard Ravitch, and Phelps-Stokes Fund President Franklin H. Williams. Elected to a two-year term from the public sector was James R. Jones, a former congressman anda partner in Dickstein Shapiro and Morin. The Amex said Greenberg Securities Co President Mark D. Greenberg and Jacee Securities Inc President Joel L. Lovett were the industry representatives elected to three year terms on the board and Johnson Lane Space Smith and Co Inc President David T. Johnson was elected to a one year term as an industry representative. It said two industry representatives were returned to the board for three year terms -- Rotan Mosle Inc President R. John Stanton Jr. and Smith Barney Harris Upham and Co Inc President sGeorge A. Vonder Linden. Reuter 

CLEVITE <CLEV.O) CITES 9.6 MLN DLR DEBT

Clevite Industries Inc said J.P. Industries Inc <JPI.O> has refused to pay it 9.5 mln dlrs in connection with J.P. Industries' acquisition of the company's former Engine Parts Division. The amount results from a disputed post-closing adjustment of the division's purchase price. Clevite sold the division to J.P. Industries in February 1987, subject to a final audit after the closing. Clevite said J.P. Industries held back a portion of the purchase price at the time of the sale. It said a preliminary audit showed J.P. Industries owed Clevite 14 mln dlrs, of which 4.5 mln dlrs has been paid. It said J.P. Industries disputed the balance. Clevite said it would pursue all possible means to collect the amount owed. On April Eight, Clevite said it received a 13.50 dlr a share offer, valued at about 96 mln dlrs, for all of its outstanding shares from J.P. Industries. A Clevite management-led group also is seeking a leveraged buyout of the company at 11.50 dlrs a share. Reuter 

MARINE MIDLAND BANKS INC <MM> 1ST QTR NET

Shr 1.74 dlrs vs 1.89 dlrs Net 35.3 mln vs 38.2 mln Assets 24.5 billion vs 21.8 billion Deposits 16.9 billion vs 16.1 billion Loans 18.9 billion vs 16.0 billion NOTE: Qtr includes pre-tax provision of 9.7 mln dlrs, resulting in 5.7 mln dlrs after-tax loss, for reserve against interest due on medium- and long-term Brazilian loans. Net investment gains for the qtr were 2.2 mln dlrs versus a gain of 15.5 mln in last year's first quarter. Provision for loan losses in the quarter was 35.3 mln dlrs vs 44.1 mln dlrs the prior first quarter. Reuter 

NL INDUSTRIES <NL> NAMES PRESIDENT

NL Industries Inc said it named J. Landis Martin as president and chief executive officer, succeeding Harold Simmons, who will continue as chairman. The company said Martin, 41, was also named chairman and chief executive of its NL Chemicals Inc unit. Reuter 

<FOURTH NATIONAL CORP> STAKE ACQUIRED

Fourth National Corp said an investor group led by management has acquired a 73 pct stake in the company from Interfirst Corp <IFC>, a Dallas bank holding firm. A Fourth National spokesman said the deal was for cash but would not disclose the amount. Fourth National, a bank holding company with about 500 mln dlrs in assets, said in a statement that it will continue to operate its four subsidiaries and retain its employees. Reuter 

DEL WEBB <WBB> UNIT SELLS JOINT VENTURE STAKE

Del E. Webb Corp said its Del E. Webb Properties Corp unit sold one-half of its interest in the 224-acre Towne Meadows mixed-use development near Mesa and Gilbert, Ariz., to Klukwan Inc, an Alaskan native cooperative. Terms of the sale were not disclosed. Webb said it had a one-half interest in the venture. Reuter 

BANK OF NEW ENGLAND CORP <BKNE.O> 1ST QTR

Shr 1.04 dlrs vs 83 cts Net 51.7 mln vs 39.4 mln Reuter 

U.S. EXPORTERS REPORT 350,000 TONNES CORN SOLD TO UNKNOWN DESTINATIONS FOR 1986/87

CANANDAIGUA WINE CO INC <CDG.A> 2ND QTR NET

Qtr ended Feb 28 Shr 35 cts vs 38 cts Net 1,682,047 vs 1,817,820 Revs 36.1 mln vs 29.9 mln Six mths Shr 73 cts vs 75 cts Net 3,518,515 vs 3,606,689 Revs 74.1 mln vs 62.7 mln Reuter 

U.S. TRADE PANEL RULES AGAINST BRAZILIAN ORANGE JUICE IMPORTS, WILL IMPOSE DUTUES

FLORIDA PROGRESS CORP <FPC> 1ST QTR NET

Shr 83 cts vs 94 cts Net 41.2 mln vs 45.5 mln Revs 428.4 mln vs 429.6 Avg shrs 49.8 mln vs 48.1 mln 12 months Shr 3.59 dlrs vs 3.53 dlrs Net 176.9 mln vs 164.4 mln Revs 1.87 billion vs 1.70 billion Avg shrs 49.3 mln vs 46.6 NOTE: 1986 first quarter profits restated down one cent a share as a result of previously reported pooling of interests merger with Mid-Continent Life Insurance Co. Reuter 

TRIBUNE <TRB> TO BUY HOLLYWOOD PROPERTY

Tribune Co said it agreed to buy from Gene Autry and the Autry Foundation certain properties located in Hollywood, California. Terms were not disclosed. The properties include broadcast and studio facilities on 10.1 acres of land located at Sunset Boulevard and Van Ness Avenue in Hollywood. Also included in the agreement are three additional parcels of land on Sunset Boulevard totaling 2.3 acres, it said. Reuter 

U.S. AGENCY RULES AGAINST BRAZIL ORANGE JUICE

The U.S. International Trade Commission, ITC, voted to authorize the Commerce Department to impose anti-dumping duties on imports of Brazilian frozen concentrated orange juice. The ITC voted 3-2 in favor of the anti-dumping petition in its final ruling on the matter. Today's ITC ruling was consistent with the Commerce Department's final ruling of March 9, and activates an anti-dumping duty of 1.96 pct on imports of Brazilian frozen concentrated orange juice, Stephen Vastagh, ITC investigator said. The ITC found that Brazilian orange juice imports have injured U.S. producers. The Commerce Department had already ruled that the imports were unfairly priced, and lowered to 1.96 pct the anti-dumping margin that in a preliminary decision last fall had been set at 8.5 pct, Vastagh said. The U.S. government has been requiring bond to be posted on imports of Brazilian frozen concentrated orange juice since Commerce's preliminary ruling of last October 23, he said. Commerce had ruled that one major Brazilian producer -- Cutrale -- would be excluded from the anti-dumping duty. Brazilian imports account for about 40 pct of total U.S. supply, Vastagh said. Between December 1985 and November 1986, the United States imported the equivalent of 546 mln gallons of Brazilian orange juice worth 622 mln dlrs, he said. Currently, the United States requires a 35-cent per gallon tariff on orange juice imports, Vastagh said. An ITC spokesman said the agency would forward its final report on the anti-dumping case to Commerce by April 22. Commerce then will process the anti-dumping order and transmit it to U.S Customs, which will liquidate bond entries dating from Commerce's preliminary ruling and begin assessing duties, Vastagh said. He said about 12 Brazilian orange juice exporters, including three major shippers, would be affected by the decision. Reuter 

TALKS FAIL TO HEAD OFF CHIP SHOWDOWN WITH JAPAN

Talks between the United States and Japan on alleged Japanese dumping of computer microchips have failed to head off U.S. imposition of retaliatory tariffs, two senior White House officials said. President Reagan's chief of staff, Howard Baker told reporters here that he saw no developments that that would cause the president to back away from his plan to issue a proclamation on Friday slapping 100 per cent tariffs on a range of Japanese electronic products. "I assume that there will be a proclamation on Friday," Baker said. Reagan's National Security Adviser, Frank Carlucci added, "It looks like a very difficult situation at this point." Carlucci said that evidence of Japanese "dumping" of microchips had been "fairly conclusive." The alleged dumping -- selling abroad at below the cost of manufacture -- is said to have undercut the technologically important U.S. microchip industry. Carlucci also said that although Japanese officials had presented statistics designed to show that Japan was opening its markets to American producers of microchips, "our statistics do not confirm this." "Indeed, they tend to go in the other direction,"Carlucci said. President Reagan announced on March 27 that he planned to raise tariffs on as much as 300 mln dlrs in Japanese exports to the United States. He accused Japan of failing to enforce major provisions of a September 1986 agreement on preventing microchip dumping and providing American industry with fair trade opportunities. He said he would be prepared to lift the sanctions when Japan took corrective action on these two issues. The dispute has soured U.S.-Jpanese relations as Japanese Prime Minister Yasuhiro Nakasone prepares to visit Washington at the end of the month for talks with Reagan. Last Friday Reagan, answering questions following a speech to the Los Angeles World Affairs Council, said Nakasone had endangered his political standing at home because of his willingess to try to eliminate trade barriers against U.S. goods. He said he was looking forward to his talks with Nakasone and "he has been most helpful." Today Reagan was vacationing at his ranch near here. Reuter 

BIONUTRONICS <BNUI.O> MAY CEASE OPERATIONS

Bio-Nutronics Inc said that if it is unable in the "very near future" to substantially increase its revenues or otherwise raise additional funds, it may be required to cease operations. Reuter 

NATIONAL CITY BANCORP <NCBM.O> 1ST QTR NET

Shr 37 cts vs 27 cts Net 1,194,000 vs 870,000 Reuter 

MORTON THIOKOL <MTI> WANTS PAPERS MADE PUBLIC

Lawyers for Morton Thiokol Inc asked a federal judge to unseal all papers filed in court here in connection with a lawsuit against it by a former employee. U.S. District Judge Harold Greene held a hearing this morning on the company's request but took no immediate action, according to a clerk. The company's motion was opposed by lawyers for the U.S. Department of Justice. The lawsuit filed by the former employee, engineer Roger Boisjoly, alleged criminal responsibility by Thiokol in the deaths of the seven Challenger astronauts in January 1986. Justice Department sources told Reuters earlier this month that the Federal Bureau of Investigation has launched a criminal investigation of Thiokol, which made the booster rocket blamed for the loss of the Challenger space shuttle. The sources said the probe stemmed from the suit by Boisjoly, who is now on medical disability. Boisjoly is seeking damages from the company for allegedly defaming his professional reputation by transferring him to a less important job after he testified to a presidential commission about the Challenger explosion. Reuter 

ONEOK INC <OKE> 2ND QTR FEB 28 NET

Shr 1.21 dlrs vs 1.80 dlrs Net 16.9 mln vs 24.6 mln Revs 230.9 mln vs 289.6 mln 12 mths Shr 1.97 dlrs vs 2.37 dlrs Net 27.6 mln vs 32.4 mln Revs 648.6 mln vs 875.7 mln NOTE: company reports earnings qtrly and includes the previous 12 mths figures. Reuter 

TEXACO <TX> SAYS SOME OIL FLOWS RE-ESTABLISHED

Texaco Inc has re-established some key oil supply lines following yesterday's court filing for protection under Chapter 11 of the U.S. bankrupcty code, said Elton Yates, Texaco's coordinator of worldwide operations. "Several companies say they are willing to start trading," Yates told Reuters in an interview. The company last week had stated that a number of domestic and international oil suppliers were demanding cash for oil shipments, and in some cases, had cut supplies altogether. Banks had also cut credit lines, it said in court filings. Manufacturers Hanover Corp <MHC> and other banks told Texaco it would cut off a one billion dlr credit line, Texaco said in the court filing. Chase Manhattan Corp <CMB> and J.P. Morgan Co's <JPM> Morgan Guaranty Trust Co asked for deposits to cover transactions, it said. The severe conditions with suppliers and creditors arose from an unfavorable ruling last Monday by the U.S. Supreme Court in Texaco's ongoing dispute with Pennzoil Co <PZL> over the acquisition of Getty Oil Co in 1984. The High Court said Texas Courts must consider Texaco's plea to cut its 10.3 billion dlr bond while appealing the case. "Most of the suppliers stayed with us as long as they could," Elton said. But following Monday's Supreme Court ruling, Texaco's suppliers began demanding cash and halting supplies. "It wasn't until last Wednesday that it turned into an avalanche," he said. "Supplies were cut to the point where we could not run the system at anywhere near capacity." He said less than half of Texaco's oil supplies had been in jeapordy, but the cut off would have produced severe shortages by mid-May. Now the situation appears much less severe, Elton said. It said that Sonatrach, the Algerian national oil company, canceled future deliveries of crude oil and natural gas, Occidental Petroleum Co <OXY> demanded cash for crude, and Atlantic Richfield Co <ARC> asked for special safeguards. The company also said British Petroleum Co PLC <BP> last week refused to accept an order for fuel oil. But Yates today said, "a big U.K. company has in fact said they would go on supplying. They had cancelled last week." He declined to identify the company. <Petroleos de Venezuela S.A.>, the Venezuelan state oil company that supplies a large portion of Texaco's oil, also halted shipments two weeks ago, Yates said. But he added that Texaco expected to meet with the Venezuelans later today in an attempt to reestablish that key supply line. Talks were also expected to take place with the Algerians, he added. Bankruptcy specialists said it was likely Texaco's chapter 11 filing would allow the company to secure its credit lines and oil supplies that are key to the company's business. "It will be business as usual for Texaco," said Martin Klein, a bankruptcy attorney at the New York law firm Dreyer and Traub. "Creditors are a nervous bunch of people," he said. "But when the dust settles they will reevaluate the situation and will likely extend credit to the chapter 11 company." But other officials at Texaco were not immediately available to say whether discussions were being held with its banks, or whether credit lines had been reestablished. Reuter 

TEXAS AIR <TEX> UNIT HIKES SERVICE FROM DENVER

Texas Air Corp's Continental Airlines said it will add flights in May to three destinations it already serves from Denver, raising its total daily departures to 264 from 261 at Stapleton International Airport. The company said that beginning May 4 it will add a fourth daily nonstop to Des Moines, Iowa and a third nonstop to Spokane, Wash. Meanwhile, on May 21 it will add a fourth daily nonstop to New York/Laguardia International Airport. Reuter 

NATIONAL CITY BANCORP <NCBM.O> 10 PCT DIVIDEND

National City Bancorp said directors at the annual meeting declared a 10 pct stock dividend payable May 22, record April 24. Reuter 

GAMING AND TECHNOLOGY <GATI.O> PRESIDENT RESIGN

Gaming and Technology Inc said Stan Fulton has resigned as president of the company. Chairman Alfred Wilms said he will assume the additional position of president. Fulton will remain a director of the company and will work on special projects, a Gaming and Technology spokeswoman said. Reuter 

MOODY'S MAY DOWNGRADE TRANSCANADA PIPELINE <TRP>

Moody's Investors Service Inc said it may downgrade 500 mln dlrs of Eurodebt of TransCanada Pipelines Ltd. The agency cited TransCanada's 4.3 billion Can dlr offer for the assets of Dome Petroleum Ltd <DMP>. The offer entails a cash payment of 3.87 billion Can dlrs to Dome's creditors and the exchange of about 20 pct of the common stock of a new TransCanada subsidiary for Dome's common and preferred. Moody's will examine the financing of the proposed transaction and resulting capital structure. TransCanada has A-3 Euro mortgage bonds and Baa-1 Eurodebt. Reuter 

FLAGLER BANK CORP <FLGLA.O> 1ST QTR NET

Shr 25 cts vs 23 cts Net 488,000 vs 443,000 Assets 289.3 mln vs 213.9 mln Deposits 254 mln vs 188.5 mln Loans 156.4 mln vs 123.4 mln NOTE: Per share amounts adjusted for stock dividends. Reuter 

NATIONAL CITY CORP <NCTY.O> 1ST QTR NET

Shr primary 87 cts vs 83 cts Shr diluted 85 cts vs 74 cts Net 35.9 mln vs 30.6 mln Avg shrs 41.0 mln vs 34.2 mln Assets 13.95 billion vs 12.34 billion Deposits 10.21 billion vs 9.24 billion Loans 9.22 billion vs 7.89 billion Return on assets 1.07 pct vs 1.05 pct Note: Net includes securities gains of seven cts a shr vs two cts. Net includes loan loss provision of 20.2 mln vs 12.6 mln. Net charge-offs totaled 15.6 mln, brining the loan loss reserve at the end of the qtr to 120.5 mln. Reuter 

RULES CHANGE RAISES CHRYSLER <C> PENSION COSTS

Chrysler Corp's pension expense is expected to increase by more than 50 pct this year due to new pension accounting standards, its annual report said. It said implementation of Statement of Financial Accounting Standards Number 87 issued by the Financial Accounting Standards Board in December 1985 this year is expected to increase Chrysler's pension expense by more than 50 pct when compared to pension expense calulated under the prevsious standards. Last year, the report said, the company's pension expense was 236.3 mln dlrs, up from 219.8 mln dlrs in 1985. A Chrysler spokeswoman said the exact amount of the increase caused by the accounting change will be reported when the company reports first quarter earnings late this month. The report also said Chrysler is continuing its program, announced in December 1984, of buying up to 56.25 mln shares -- adjusted to reflect two three-for-two stock splits since then. The company had acquired about 42.3 mln shares by the end of 1986, the report said, adding there is no target set for completion of the program. Reuter 

BANK OF NEW ENGLAND <BKNE.O> POST PRO FORMA NET

Bank of New England Corp reported that pro forma first quarter earnings, which reflect its combined operations under a pending merger with the Conifer Group, rose to 60 mln dlrs, or 89 cts a share, from 49 mln dlrs, or 75 cts a share in 1986. The merger is expected to close on April 22. Earlier, Bank of New England reported first quarter net income, not taking the merger into account, rose to 1.04 dlrs from 83 cts a share. NOTE:First quarter of 1986 does not include restatement from recent acquisitions. After restatement, net income was 39.8 mln dlrs. The 1987 pro forma first quarter results include nonrecurring merger expenses of 4.7 mln dlrs. Excluding these expenses, growth in operating expenses of the combined companies was reduced from 14 pct to 12 pct during the first quarter. Loans and leases increased 34 pct to 19.5 billion dlrs and deposits grew 14 pct to 19.6 billion dlrs. The provision for possible credit losses was 14.4 mln dlrs in the first quarter compared with 19.7 mln dlrs last year. Net charge-offs were 10.9 mln dlrs, down from 12.8 mln dlrs in 1986. Reuter 

BURNHAM AMERICAN PROPOERTIES <BAPYZ.O> 2ND QTR

Qtr ended March 31 Net 268,760 vs 235,274 Revs 721,882 vs 575,806 Six mths Net 472,642 vs 464,042 Revs 1,372,453 vs 1,059,462 Note: per share data not given, as not comparable to net figures, which are before depreciation. Reuter 

CANADA'S WILSON HAS NO COMMENT ON DOME (DMP)

Finance Minister Michael Wilson said it was too early to comment on the tax implications of TransCanada PipeLines Ltd's 4.3 billion dlr offer for Dome Petroleum Ltd. "The specific offer by TransCanada is just in the course of being made and we don't have the details of all the elements of the proposal," Wilson told the House of Commons daily question period. Opposition parties were questioning Wilson about a possible loss of tax revenue if the takeover was completed because of the large tax credits held by Dome. Reuter 

INTERNATIONAL TELECHARGE LAUNCHES SERVICE

International Telecharge Inc said it introduced a new international inbound long-distance service from Europe called "Quick Call USA." The three-minute call will be available from seven European countries. The call, placed by dialing a local country access number, will be answered by an International Telecharge operator and sent to any phone in the U.S., it said. The caller has the option of calling collect or billing to a major credit card at a flat rate of 10.65 dlrs, expect for calls from the U.K. which will be billed at a rate of 8.53 dlrs, the company said. Reuter 

DAUPHIN DEPOSIT <DAPN> TO ACQUIRE COLONIAL

Dauphin Deposit Corp said it signed a definitive agreement to acquire <Colonial Bancorp Inc>. The agreement calls for Colonial to be merged into Dauphin Deposit Corp, and Colonial's subsidiary, New Holland Farmers National Bank, to be merged into Dauphin Deposit Bank and Trust Co, the lead bank of Dauphin Deposit Corp, the company said. Shareholders of Colonial will receive between 3.6 and 4.4 shares of Dauphin common stock for each share of Colonial, depending on Dauphin's current market value, it said. As of Dec 31, 1986, Colonia Bancorp had assets of 150 mln dlrs, Dauphin said. Reuter 

KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE

OPEC's credibility faces fresh scrutiny in coming weeks amid signs of a significant rise in supplies of oil to international oil markets, the Kuwait daily al-Qabas said. In an article headlined "Gulf oil sources say Middle East production up 1.4 mln bpd" and "Markets witness new surplus amid whispers of return to cheating days," it warned OPEC's official prices could face fresh pressure from international oil companies seeking cheaper supplies. It did not say whether only OPEC or Opec and other producers were behind the reported rise in Mideast output. Nor did it specify if the sources were official or other contacts. "The sources said the credibility of OPEC would come under fresh scrutiny from Monday, with activity in the European and American markets," it said. The sources were quoted as saying that after Opec had in March demonstrated its commitment to quota agreements, some members had raised output last week. It gave no details. "Dealers in oil markets were now waiting to see if Opec was able to control production, or whether the days of cheating and producing over quotas has begun anew," it reported. "The sources warned that maybe the (price of a) barrel of oil will fall below 18, perhaps 17.80 dlrs this week or next if there is no control on supplies. "The sources believed a return of oil below 18 dlrs a barrel may open the doors for international oil companies to pressure Opec over contract prices, similar to the struggle last March," it said, apparently referring to resistance by buyers to lift from Qatar unless it gave price discounts. "More than one official has warned Opec would find its solidarity under scrutiny by the end of April or start of May," it said, noting demand usually fell with the onset of summer. Reuter 

TREASURY BALANCES AT FED FELL ON APRIL 9

Treasury balances at the Federal Reserve fell on April 10 to 3.373 billion dlrs from 3.523 billion dlrs on the previous business day, the Treasury said in its latest budget statement. Balances in tax and loan note accounts fell to 11.645 billion dlrs from 11.869 billion dlrs on the same respective days. The Treasury's operating cash balance totaled 15.018 billion dlrs compared with 15.392 billion dlrs on April 9. Reuter 

DOE RESOLVES ISSUES WITH ROYAL DUTCH <RD> UNIT

The Energy Department said it had approved in final form an agreement that resolves all remaining issues with Shell Oil Co over oil pricing and allocation controls that ended in 1981. Under the agreement, The Royal Dutch/Shell Group unit agreed to pay 20 mln dlrs to settle refiner pricing issues and 160 mln dlrs to settle crude oil pricing issues, DOE said. DOE said that before making the pact final, it modified it to reflect Shell's compliance with the Tertiary Incentive Program, a provision not in the version published last Dec 31. reuter 

CELLULAR COMMUNICATIONS <COMM.O> CLOSES BUYOUT

Cellular Communications Inc said that a unit purchased a 6.99 pct interest in the Cincinnati non-wireline cellular system. As a result of the transaction, the company said it now owns 100 pct of the system in Cincinnati. Reuter 

ATHLONE INDUSTRIES INC <ATH> SETS QTLY DIVIDEND

Qtly div 40 cts vs 40 cts prior Pay May 15 Record May one. Reuter 

FIRST FEDERAL SAVINGS BANK <FFSD.O> 2ND QTR NET

Qtr ended March 31 Shr 88 cts Net 973,000 vs 713,000 Six mths Shr 1.35 dlrs Net 1,497,000 vs 1,464,000 Note: Bank went public on Dec 29, 1986. Reuter 

PLANTRONICS INC <PLX> 3RD QTR MARCH 28 NET

Shr 39 cts vs 32 cts Net 2,524,000 vs 2,046,00 Sales 28.5 mln vs 23.5 mln Nine Mths Shr 1.01 dlrs vs 1.09 dlrs Net 6,323,000 vs 6,990,000 Sales 80.6 mln vs 68.8 mln Note: Current qtr and nine mth net include 447,000 dlr gain on asset sales. Prior nine mth net includes 3.4 mln dlr asset sale gain. Reuter 

GAF <GAF> SEEKS INFORMATION ON BORG-WARNER<BOR>

GAF Corp said it is exploring its options in response to Merrill Lynch Capital Partners' 4.23 billion dlr offer for Borg-Warner Corp, and it has asked for all information that was supplied to Merrill Lynch. A GAF spokesman said the company asked for the information in order to enable GAF to fully evaluate its alternatives. The spokesman also confirmed that GAF did raise its bid to 48 dlrs cash from 46 dlrs per share on Friday. Merrill is offering 48.50 dlrs per share cash for 89 pct of Borg-Warner, and a package of cash and securities for the balance. The transaction with Merrill Lynch will take Borg-Warner private in the form of a leveraged buyout. Merrill Lynch does not intend to sell Borg-Warner assets, but it may be forced to do so in financing the deal, said sources familiar with the transaction. Borg-Warner has said its management is not a participant in the transaction, but managers will retain their positions. The investors involved with Merrill include pension funds, insurance companies and other institutional investors, sources said. Analysts believe GAF, which owns 19.9 pct of Borg-Warner, will raise its offer. That speculation drove Borg-warner stock up 1-3/8 to 49-5/8 in heavy trading. GAF closed at 49-5/8, off 3/4. Reuter 

BELL ATLANTIC <BEL> UNIT HAS MARKETING APPROVAL

New Jersey Bell, wholly owned by Bell Atlantic Corp, said the Federal Communications Commission will allow it to market its network service with equipment provided by Bell Atlanticom Systems, an unregulated company also wholly owned by Bell Atlantic. New Jersey Bell said the FCC ruling gives it interim relief from current accounting restrictions until the company's plans for complying with new accounting rules are approved by the FCC. New Jersey Bell said the FCC ordered January one that telephone companies could offer equipment as long as they complied with new accounting rules that separate costs of regulated service from unregulated activities. New Jersey Bell said the joint marketing program between it and Bell Atlanticom Systems will apply initially to New Jersey Bell's largest business customers. Reuter 

ABU DHABI MARKETING SAID NOT BREACHING OPEC PACT

A senior Abu Dhabi oil official said in remarks published today the emirate, largest producer in the United Arab Emirates (UAE), was succeeding in marketing its crude oil without breaching OPEC accords. Khalaf al-Oteiba, Marketing Director at the Abu Dhabi National Oil Co (ADNOC), told the company's Petroleum Community magazine ADNOC was also keen to keep good customer relations. "The company will maintain its dialogue with and care for its customers in accordance with market conditions...And take necessary steps to guarantee marketing its production," he said. "The present oil marketing policy of ADNOC is based on adherence to OPEC decisions of December 1986 to control production and establish a new pricing system in an attempt to stabilize the market," he added. OPEC agreed last December to limit production to 15.8 mln bpd and return to fixed prices averaging 18 dlrs a barrel. Oteiba said stabilization of the oil market in the future depended on how much discipline OPEC showed. Oteiba said last year, when world oil prices dropped, was ADNOC's most difficult ever but "a practical and flexible pricing policy was implemented to relate to the changed market environment." He said crude oil sales last year jumped to an average 609,000 bpd of which 73 pct was exported. Refined product sales totalled eight mln metric tonnes, of which 67 pct was exported. In 1985, ADNOC marketed a total of 476,000 bpd of crude oil and 7.2 mln tonnes of refined products. Reuter 

UNITED TECHNOLOGIES GETS 502.1 MLN DLR CONTRACT

The Pratt and Whitney Government Products Division of United Technologies Corp <UTX> is being awarded a 502.1 mln dlr increase to an Air Force contract for alternate fighter engine and support equipment, the Defense Department said. It said the contract, which funds work related to F100-FW-220 engines, combines purchases for the U.S. Air Force, Korea, Singapore, Thailand, Egypt and the Netherlands under the Foreign Military Sales program. Work on the contract is expected to be completed December 1988, the department said. Reuter 

LOCKHEED <LK> UNIT GETS 275 MLN DLR CONTRACT

Lockheed Corp's Lockheed Missiles and Space Co is being awarded a 275 mln dlr modification to a Navy contract for development and production of Trident II missiles, the Defense Department said. It said work on the contract is expected to be completed in March 1990. Reuter 

CORE-MARK <CMK.TO> SEES PROBLEM CORRECTION

Core-Mark International Inc said it was vigorously addressing its problems and would correct them in the near term. The packaged goods distributor said that its statement followed "a number of apparently confusing statements concerning the company that may have given rise to uncertainty as to the company's current operative condition and future." Core-Mark previously said that former chief executive D.E. Gillespie resigned due to family problems and declining health, and added that negotiations for sale of his majority stake to two unnamed investor groups were a growing possibility. Core-Mark's interim chief executive Anthony Regensburg said the sudden earnings deterioration in late fourth quarter "took everyone by surprise and directors along with management are urgently addressing these problems. "Speculation as to the company's future has been less than helpful and has provoked and heightened anxieties and diverted management's time and attention to address them," Regensburg said in a statement. Reuter 

RHNB CORP <RHNB> 1ST QTR NET

Shr 61 cts vs 55 cts Net 695,252 vs 633,329 Loans 125.2 mln vs 89.9 mln Deposits 209.2 mln vs 172.9 mln Assets 245.5 mln vs 207.5 mln Reuter 

KRAFT <KRA> COMPLETES ACQUISITION

Kraft Inc said it completed the acquisition of Holleb and Co, a foodservice distributor based in Bensenville, Ill. Terms were withheld. It said Holleb's 1986 sales were about 85 mln dlrs. Reuter 

FIRST OF AMERICA BANK INC <FABK.O> 1ST QTR NET

Shr 1.12 dlrs vs 1.27 dlrs Net 15,000,000 vs 11,900,000 Avg shrs 9,642,403 vs 8,322,245 Loans 4.57 billion vs 3.29 billion Deposits 6.80 billion vs 4.75 billion Assets 7.75 billion vs 5.37 billion Reuter 

LOMAK PETROLEUM INC <LOMK.O> YEAR LOSS

Shr loss 10 cts vs loss 19 cts Net loss 1,348,000 vs loss 2,410,000 Revs 11.2 mln vs 22.3 mln Acg shrs 13.8 mln vs 12.9 mln Reuter 

U.S. SELLS 3-MO BILLS AT 5.98 PCT, STOP 5.99 PCT, 6-MO 6.08 PCT, STOP 6.10 PCT

NEWMONT <NEM> STAKE IN DU PONT <DD> DECLINES

Newmont Mining Corp held 5,250,376 Du Pont Co shares, or about 2.2 pct of those outstanding, at the end of 1986, down from the 5,970,141 shares, or 2.5 pct of those outstanding, it held a year earlier, Newmont's annual report said. --Corrects March 30 item to show holdings decreased. Reuter 

BANKEAST CORP <BENH.O> 1ST QTR NET

Shr 35 cts vs 29 cts Net 3,732,000 vs 3,131,000 Assets 1.09 billion vs 861.2 mln Deposits 817.7 mlnvs 705.7 mln Loans 704.1 mln vs 553.4 mln Note: 1986 results restated to reflect acquisition of United Banks Corp. Reuter 

GENERAL MOTORS <GM> GETS 97 MLN DLR CONTRACT

General Motors Corp is being awarded a 97 mln dlr Air Force contract for 176 turboprop engines in three separate designs, the Defense Department said. It said the contract, which combines purchases for the U.S. Navy, the U.S. Air Force Reserves, Japan and Norway under the Foreign Military Sales program, is expected to be completed in December 1987. Reuter 

UST CORP <UTSB.O> 1ST QTR NET

Shr 41 cts vs 31 cts Net 4,568,656 vs 3,461,674 Assets 1.7 billion vs 1.4 billion Deposits 1.46 billion vs 1.19 billion Note: 1986 results restated to reflect a 100 pct stock dividend. Reuter 

FARM EQUIPMENT SALES DECLINE IN MARCH

Domestic sales of farm wheel tractors in March declined 9.2 pct to 7,654 units from 8,434 in the same year-ago period, the Farm and Industrial Equipment Institute said. Year to date, it said sales declined 16.9 pct to 18,003 from 21,665 in the same 1986 period. It said in the two-wheel drive 40 horsepower and under segment, 4,747 vehicles were sold in March compared to 5,473 a year ago. In the 40 and under to 100 horsepower, 2,238 vehicles were sold, up from 1,995 the previous March. Reuter 

CENTRAL ILL PUBLIC SERVICE <CIP> 1ST QTR NET

Shr 28 cts vs 29 cts Net 10,978,000 vs 11,916,000 Revs 153.5 mln vs 163.4 mln NOTE: Full name is Central Illinois Public Service Co Per-share results reflect payment of preferred dividends Reuter 

VERSAR <VSR> HAS U.S. AIR FORCE CONTRACT

Versar Inc said it received a four year contract from the U.S. Air Force with a maximum value of 9.5 mln dlrs for carrying out work including radioactive and toxic contamination studies. Versar said work under the contract with the Air Force Occupational Health Laboratory, Aerospace Medical Division, at Brooks Air Force Base in Texas, will be done in and around air force installations worldwide. Reuter 

BRASCAN LTD <BRS.A.> TO REDEEM PREFERREDS

Brascan Ltd said it planned to redeem on May 15 all outstanding 1981 series A preferred shares at 26 dlrs a share plus accrued and unpaid dividends. Reuter 

<THERA-CARE INC> TO ACQUIRE CUSHING

Thera-Care Inc said it agreed to acquire Cushing and Associates of Glendale, Calif., in exchange for 1,480,000 Thera-Care shares. Reuter 

INTERCO <ISS> COMPLETES LANE<LANE> ACQUISITION

Interco Inc said its shareholders and those of Lane Co approved a merger of the two companies at special meetings. As previously announced, Lane's shareholders will receive 1.5 shares of Interco common stock for each share of Lane stock held. Interco said the merger becomes effective April 14. Reuter 

HMO AMERICA <HMOA> AGREES TO BE ACQUIRED

HMO America Inc said it signed a letter of intent with Mount Sinai Medical Center here and an affiliate, providing that all of its common and preferred stock be acquired by a new not-for-profit company to be controlled by Mount Sinai and other Chicago area not-for-profit hospitals who may elect to participate in the acquisition. The form of the transaction has not yet been determined, it said. According to terms, HMO's shareholders would receive a combination of cash and debt securities to be issued by the buyer in exchange for their outstanding shares of common and preferred stock, it said. The amount of cash per share has not yet been determined, it added. Arrangements for financing have not yet been made and there can be no assurance that any financing will be received, HMO said. Closing of the proposed transaction, if it is completed, is expected on or before November 2, 1987, it said. Reuter 

EVEREST AND JENNINGS <EJ.A> QTLY DIVIDEND

Shr five cts vs five cts prior qtr Pay May 15 Record April 22 Reuter 

PS GROUP INC <PSG> QTLY DIVIDEND

Shr 15 cts vs 15 cts prior qtr Pay May 18 Record April 27 Reuter 

DOME <DMP> BENEFITS FROM TAKEOVER SPECULATION

Shares of Dome Petroleum Ltd posted their biggest gain in months in the U.S. and Canada as stock markets foresaw a takeover tug-of-war beginning for the debt-heavy company. Dome rose 1/4 to 1-1/8 on the American Stock Exchange and gained 31 cents to 1.44 Canadian dlrs on the Toronto Stock Exchange, where it was the most active stock. It rose as high as 1.50 dlrs in Toronto during the day. In recent months, Dome has normally moved by only a few cents per day. TransCanada PipeLines yesterday announced a 4.3 billion dlr Canadian (3.22 billion U.S.) bid for all of Dome's assets, but Dome, which is based in Calgary, Alberta, said it is also still talking with two other companies, which it refuses to identify. Market analysts today said the other two firms are believed to be foreign oil companies, noting that TransCanada yesterday stressed that its bid is "a Canadian solution to the financial difficulties of Dome Petroleum." "The talk is about Conoco, which is controlled by DuPont <DD>, and Atlantic Richfield Co <ARC>, which sold its Canadian interest in 1975 and could be getting back in," said Wilf Gobert of Peters and Co Ltd. David Bryson of Moss Lawson and Co also noted that British Petroleum PLC <BP> is mentioned as a possible buyer, despite BP's 70 U.S. dlr per share bid two weeks ago for the 45 percent of Standard Oil Co <SRD> it does not already own. Calgary-based independent analyst James Hamilton has said in recent reports that Amoco Corp <AN> has also been in talks with Dome. Representatives of Atlantic Richfield, British Petroleum, Conoco and Amoco were not immediately available for comment. Gobert characterized the market action in Dome today as "awfully optimistic," given TransCanada's offer to give current Dome shareholders stock in a new subsidiary, which it valued at 1.10 dlrs Canadian per common share. Under the offer, current Dome common and preferred shareholders would own 20 pct of the new subsidiary, which would own and operate all Dome's former assets. TransCanada would own 80 pct. However, Bryson said the market may be looking at the potential for shares in a publicly-traded subsidiary. "The TransCanada offer has quite a bit of upside potential for Dome," he said. Gobert said he believes the TransCanada offer is "at the upper end of what I thought somebody would pay for Dome." The TransCanada proposal would pay Dome's creditors 3.87 billion Canadian dlrs (2.90 billion U.S. dlrs), with another one billion Canadian dlrs (750 mln U.S. dlrs) available to secured creditors if the Dome subsidiary earns profits above a certain level. TransCanada would not detail the profit level. Dome currently is seeking to restructure about six billion Canadian dlrs (4.5 billion U.S. dlrs) in debt, which it took on several years ago when oil prices were high and the company wanted to expand. "There has been speculation that Dome's assets are capable of supporting debt of three to four billion dlrs, so on that basis, the TransCanada offer would be at the upper end of that," Gobert said. Dome's debt troubles have often obscured the fact that it is a major player in the Canadian oil and gas field. It holds reserves of about 176 mln barrels of crude oil and 3.9 billion cubic feet of natural gas. The company also owns or has an interest in 14.2 mln acres of oil and gas exploration land in the province of Alberta, the heart of Canada's oil industry. Dome owns or has an interest in a total of 36.1 mln acres of land across Canada. The company also has tax credits of about 2.5 billion dlrs Canadian (1.9 billion dlrs U.S.). It reported a 1986 loss of 2.2 billion dlrs (1.65 billion dlrs U.S.), believed to be the largest ever by a Canadian company. Reuter 

U.S. BILL AUCTION RATES AVERAGE 5.98, 6.08 PCT

The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.98 pct, with a 6.08 pct rate on six-month bills. These rates compared with averages of 5.53 pct for the three- and 5.63 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 6.17 pct. Accepted bids ranges from 5.92 to 5.99 pct and 60 pct of the bids at the high, or stopout rate, were taken. For six months, the yield was 6.38 pct and the bids ranged from 5.98 pct to 6.10 pct with 48 pct of the bids accepted. The Treasury said it received 25.99 billion dlrs of bids for the three-month bills, including 1.2 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids, including 2.1 billion dlrs from the Federal Reserve and 180 mln dlrs from foreign and international monetary authorities. Some 24.7 billion dlrs in bids for six-month bills were received, including 832 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs, including 1.8 billion dlrs from the Fed and 1.2 billion dlrs from foreign and international authorities. The average price for the three-month bills was 98.488 and prices ranged from 98.504 to 98.486. The average price for the six-months bills was 96.926, and prices ranged from 96.977 to 96.916. The average yield on the three-month bills was the highest since 5.99 pct on June 30, 1986. The average yield on the six-month bills was the highest since 6.13 pct on June 23, 1986. Reuter 

ANDOVER WAGES HBO <HBOC> PROXY WAR

Andover Group, a Virginia general partnership, said it mailed proxies soliciting votes for a slate of nominees to HBO and Co's board of directors. Last week, HBO and Co sent a letter urging shareholders against the proxies. Andover said HBO has consistently refused to provide it with internal financial information it considers essential to formulate an acquisition offer. If its nominees are elected, Andover said it will make a proposal to buy HBO on terms and conditions to be determined at that time. The annual meeting is scheduled for April 30. Reuter 

UNITED TECHNOLOGIES <UTX> IN JOINT PACT

United Technologies Corp said it joined with two other companies to form a partnership in proposing a defense system for the U.S. Army. United Technologies said it joined forces with FMC Corp <FMC> and <British Aerospace> to form <United Aerospace Defense Systems>. Together, they proposed the "Tracked Rapier" defense system to meet Army requirements for defending American divisions in Europe from low flying helicopters and tactical aircraft. Reuter 

GROUP RAISES COMPUTER MEMORIES <CMIN> STAKE

A shareholder group led by Far Hills, N.J., investor Natalie Koether said it raised its stake in Computer Memories Inc to 573,300 shares, or 5.1 pct of the total outstanding, from 542,000 shares, or 4.8 pct. In a filing with the Securities and Exchange Commission, the group, which includes Sun Equities Corp, an investment firm, said it bought a net 31,300 Computer Memories common shares since March 31 at prices ranging from three to 3-5/16 dlrs a share for "capital appreciation." The group had earlier abandoned plans to seek control of the company and lowered its stake to less than five pct. Reuter 

HONG KONG FIRM HAS 5.1 PCT OF MCGILL <MGLL.O>

Industrial Equity (Pacific) Ltd told the Securities and Exchange Commission it has acquired 72,600 shares of McGill Manufacturing Co Inc, or 5.1 pct of the total outstanding common stock. Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand firm, said it bought the stake for 2.3 mln dlrs for investment purposes. It said it may add to its stake, or sell some or all of it, but has no plans to seek control of the company. Reuter 

RAMADA <RAM> SELLS SUBORDINATED NOTES

Ramada Inc is raising 100 mln dlrs through an offering of subordinated notes due 1999 yielding 11.703 pct, said sole manager Salomon Brothers Inc. The notes have an 11-5/8 pct coupon and were priced at 99.50, Salomon said. Non-callable for three years and non-refundable for five, the issue is rated B-2 by Moody's Investors Service Inc and B-minus by Standard and Poor's Corp. Reuter 

MONTGOMERY STREET INCOME <MTS> 1ST QTR NET

Shr 49 cts vs 50 cts Net 3,922,533 vs 3,979,580 Note: Full name Montgomery Street Income Securities Inc. Reuter 

NORTHAIR <NRM.TO> OPPOSING NORQUEST <NQRLF> BID

Northair Mines Ltd said it would oppose Nor-Quest Resources Inc's earlier reported proposed takeover bid "with every means at its disposal," saying "this attempt at a property grab is an insult to the intelligence of our shareholders." It said Nor-Quest's offer to swap one Nor-Quest share plus one dlr for two Northair shares would seriously dilute Northair's equity in its Willa mine in British Columbia. "Our company is in sound financial position and production financing can be readily arranged when required. We're not looking for a partner and if we were, it certainly wouldn't be these guys," Northair said. Reuter 

VISTA CHEMICAL <VC> IN PUBLIC OFFERING

Vista Chemical Co said it plans to file a registration statement with the Securities and Exchange Commission in early covering the sale of about 4.5 mln shares of its common stock to the public. The shares will be sold by institutional investors who partially financed the company upon its formation in 1984 and by the trustee of its savings and investment plan on behalf of employee participants. None of the shares will be sold by the company, it said. Reuter 

HARMON INDUSTRIES <HRMN.O> IN PACT WITH AMTRAK

Harmon Industries said it signed a contract worth more than three mln dlrs with the National Railroad Passenger Corp (Amtrak). Harmon Industries said the contract includes the design, engineering, manufacturing, delivery and system integration for signalling equipment along Amtrak's 55-mile Philadelphia to Atlantic City, N.J., line. Reuter 

GE <GE> VENTURE WINS JET ENGINE ORDER

CFM International, a joint venture of <SNECMA> of France and General Electric Co said it received an order for its CFM56-5 engines worth 320 mln dlrs from <GPA Airbus 320 Group Ltd, Shannon, Ireland. The company said the engines will power 25 twin-engine Airbus Industrie A320 aircraft. Reuter 

MEDIZONE SAYS AIDS THERAPY TO BE TESTED

<Medizone International Inc> said it expects the Food and Drug Administration to soon approve the company's application to begin limited tests of its potential therapy against AIDS using a combination of ozone and oxygen. The company said that once it receives FDA approval, 20 patients with AIDS-related complex will start the treatment at Mount Sinai Medical Center in New York. Dr Joseph Latino, director of research at Medizone said the therapy, which he likened to a process, uses a combination of oxygen and ozone injected into a patient's owns blood outside of the body, and then reinfused back into the body. "We are guardedly optimistic that this treatment may work," said Latino, who said the process has been used to treat viral illneses, including AIDS, in Europe with varying degrees of success. He said ozone can kill viruses and is used to kill viruses in waste water treatments. He said the treatment should not be compared to inhaling ozone, which is toxic. Latino said the company is prepared to fund the trial, which will cost about 250,000 dlrs. Reuter 

TEXTRON <TXT> VICE-CHAIRMAN RESIGNS

Textron Inc said E. Paul Casey resigned as vice-chairman and a director to pursue other interests. Casey assumed his duties at Textron in October, 1986, following acquisition of Ex-Cell-O Corp by Textron. Casey was formerly chairman, president and chief executive of Ex-Cell-O. Reuter 

SEC TO PROBE TWO CONVICTED OF SECURITIES FRAUD

The Securities and Exchange Commission said it began a disciplinary review of two men who were previously convicted of fraud for violations of U.S. securities laws. The SEC said Robert and Albert D'Elia were convicted following allegations that they traded upon information misappropriated from a financial printer in 1980 and 1981. The D'Elias were officers and shareholders of Rad Securities Inc, a Philadelphia broker-dealer. A hearing will be scheduled at a later date, the SEC said. Reuter 

TEXAS AIR <TEX> UNIT COMPLETES SYSTEM SALE

Texas Air Corp's Eastern Airlines said it completed its previously announced plan to sell its travel agency automation system, SystemOne Direct Access Inc, and its computer and communications support unit, EAL Automation Systems Inc, to SystemOne Corp, a wholly-owned subsidiary of Texas Air Corp. Reuter 

AANCOR UNIT SELLS PRIORITY SUBORDINATED NOTES

National Gypsum Co, a unit of Aancor Holdings Inc, said it is offering 300 mln dlrs of priority senior subordinated notes due 1997 with an 11-3/8 pct coupon and par pricing. Non-redeemable for five years, the issue is rated B-2 by Moody's Investors Service Inc and B by Standard and Poor's Corp. A sinking fund starts in 1994 to retire 75 pct of the notes by maturity. Proceeds will be used to terminate the company's current revolving credit facility. Goldman, Sachs and Co and Merrill Lynch Capital Markets underwrote the deal. Reuter 

MOODY'S DOWNGRADES MICHIGAN GENERAL <MGL> DEBT

Moody's Investors Service Inc said it downgraded 110 mln dlrs of debt of Michigan General Corp. Reduced were the company's 10-3/4 pct senior subordinated debentures of 1998 to Caa from B-3. Moody's cited Michigan's ongoing losses which have impaired liquidity, weakened financial flexibility and lessened the likelihood for operating performance to improve. Michigan's principal business, lumber and housebuilding products sales, operates in a cyclical and highly competitve environment so that even debt restructuring would probably not improve earnings, Moody's pointed out. Reuter 

NCNB CORP <NCB> 1ST QTR NET

Shr 68 cts vs 68 cts Net 53.9 mln vs 53.2 mln Assets 26.5 billion vs 22.2 billion Loans 15.7 billion vs vs 13.3 billion Deposits 13.8 billion vs vs 11.6 billion Reuter 

AIR CANADA SETS SERVICE TO EGYPT

Air Canada, the state-owned airline, said it plans to begin flights to Egypt next year following a bilateral air trade agreement signed between the Egyptian and Canadian governments. "Egypt has a healthy passenger and cargo air market in which Air Canada can be a powerful competitor," executive vice-president Roger Linder said. The airline said it would like to link the service with one of its European stops. It said it plans further expansion with destinations in the Middle East and Asia and a trans-Pacific route from Canada to the Far East. Reuter 

INVESTMENT FIRM HAS 5.3 PCT OF BLASIUS <BLAS.O>

Fidelity International Ltd, a Bermuda-based investment advisory firm, and an affiliated investment firm, American Values III N.V., said they have acquired 208,000 share of Blasius Industries Inc. In a filing with the Securities and Exchange Commission, the group said it bought the stake, which amounts to 5.3 pct of the total outstanding common stock, to acquire an equity interest in the company for investment purposes. The group said it may raise its stake or sell some or all of it, and has no plans to seek control of the company. Reuter