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AFG <AFG> EXPANDS INTO AUTO GLASS REPLACEMENT

AFG Industries Inc said it is entering the automobile replacement glass market with the acquisition of A-1 Quality Glass, of Salt Lake City, and Tempo Auto Glass, of Tacoma, Wash. Terms of the acquisitions were not disclosed. AFG also said that if the offer it has made as part of a partnership with Wagner and Brown to acquire GenCorp Inc <GY> is successful, it will consider establishing autoglass stores in GenCorp's retail tire outlets. AFG said that in addition to the two acquisitions, it has been operating eight stores through its American Slat Glass distribution group. It said a a newly formed subsidiary, AFG Auto Glass Inc, will be looking for additional acquisitions as well as opening new outlets. A-1 Quality Glass operates a central wholesale autoglass distribution center and 23 stores in Utah, Arizona, and other western states. Tempo operates four stores in the Pacific northwest region. Reuter 

GREENWOOD RESOURCES SAYS BANKS COULD FORECLOSE

<Greenwood Resources Inc> said if it is unsuccessful in gaining shareholder approval for a debt refinancing with Colorado National Bankshares Inc <COLC>, the bank will have the right to foreclose on Greenwood's assets. On January 28, Greenwood's board approved an agreement with Colorado National calling for the sale of 4,300,000 shares of New London Oil owned by Greenwood for 1,700,000 dlrs and calling for a restructuring and recapitalizing of Greenwood, subject to shareholder approval. As a result of declines in the value of oil and natural gas properties brought on by the fall in prices for those fuels, Greenwood started facing substantial bank debt prepayment requirements in 1986. The New London shares are to be sold to a party in London. On February 1, Colorado National released to the company all cash flow from oil and natural gas operations and reduced its debt in return for the payment of 1,700,000 dlrs from the sale of the New London stock and other considerations. Eighty pct of Greenwood's cash flow from oil and gas operations had been allocated to servicing debt to the bank. Under the deal with Colorado National, existing preferred and common stocks would be converted into a new common stock, subject to shareholder approval. The company said it expects to file proxy materials for the special meeting of shareholders at which the matter will be considered by the first week of April, mail material to shareholders by early May and schedule the meeting for about 30 days thereafter. It said its 1985 audit -- not conducted at the end of that year due to lack of funds -- is being conducted now, along with the 1986 audit, by Touche Ross and Co. Greenwood said as soon as its 1985 audit is completed, it will apply for readmission to the NASDAQ system, from which it was delisted last year. It also said it probably plans to change its name to Greenwood Holdings due to its planned redirection from natural resources. Reuter 

NAVISTAR <NAV> STILL EXPECTS HIGHER 1987 NET

Navistar International Corp chairman Donald Lennox repeated that benefits from recapitalization are likely to boost future earnings for fiscal 1987. Lennox told the annual meeting that future quarterly and full year earnings from ongoing operations should be "significantly above 1986 results." In his remarks, Lennox said management has no plans to recommend reinstatement of the company's common stock dividend in the foreseeable future. He said the outlook for the medium duty truck market continues to point to little or no change. But recent order receipts indicate a "firmer tone in the heavy duty truck segment," which could result in a five to eight pct increase in industry shipments for the full year, he said. After restructuring under the holding company format, the company's present truck and engine subsidiary will be known as Navistar International Transportation Corp. Neil Springer currently president and chief operating officer of Navistar International was named chairman of the new subsidiary. James Cotting, now vice chairman and chief financial officer, was named to succeed Lennox as chairman and chief executive officer of Navistar International Corp. Lennox will retire March 31. Shareholders at the meeting approved a change in the company's structure to a holding company format, to be effective April 1. Reuter 

HEES INTERNATIONAL SETS 100 MLN DLR SHARE ISSUE

<Hees International Corp> said it filed a preliminary prospectus in Canada for a 100 mln dlr issue of 1,000 class A preference shares, series G, priced at 100,000 dlrs a share. The preferred shares will carry a floating dividend rate which will be determined in a monthly auction, it said. The issue is being bought by a group of underwriters consisting of Dominion Securities Inc, Wood Gundy Inc, Merrill Lynch Canada Inc, Gordon Capital Corp and Burns Fry Ltd. The issue raises total outstanding series G preferreds to 200 mln dlrs and total equity to more than 1.30 billion dlrs. Reuter 

CORRECTED-LILLY INDUSTRIAL COATINGS INC <LICIA>

1st qtr Feb 28 end Shr 18 cts vs 13 cts Net 1,541,000 vs 1,122,000 Sales 39.7 mln vs 33.5 mln Avg shrs 8,517,000 vs 8,441,000 NOTE: Share adjusted for five pct stock dividend in August 1986. Company corrects current year sales. Reuter 

U.S. SENATE PANEL APPROVES TRADE MISSION BILL

The U.S. Senate Agriculture Committee approved a bill that would establish farm trade and aid missions to promote the use of U.S. food aid, donation, credit and export subsidy programs by overseas customers. The bill, approved by voice vote, would establish trade missions made up of representatives of the Departments of Agriculture and State, the Agency for International Development, the Overseas Private Investment Corp, market development cooperatives and private voluntary organizations. At least 16 missions would have to be sent within one year after enactment of the bill. The missions would promote U.S. programs, including PL480, Section 416 donations, Export Enhancement Program, the dairy export incentive program, and export credit guarantee programs (GSM-102, GSM-103). The panel agreed to drop a provision in the original bill, offered by Sen. John Melcher (D-Mont.), that would have required the U.S. Agriculture Department to donate at least one mln tonnes of surplus commodities to developing countries. Current law requires USDA to donate at least 750,000 tonnes of surplus grains and dairy products under the Section 416 food donation program. The Congressional Budget Office estimated that the proposed increase in the minimum tonnage requirement would have cost up to 50 mln dlrs per year, Senate staff said. The committee also dropped a provision identifying which countries would be the focus of the trade missions' activities. Under the bill adopted by the committee, countries "friendly to the United States" would be eligible to host the trade missions. Melcher originally had proposed sending missions to Mexico, the Philippines, Indonesia, Bangladesh, Senegal, Nigeria, Peru, Kenya, the Dominican Republic, Costa Rica, Malaysia, Venezuela, Tunisia and Morocco. The bill also would require the Foreign Agricultural Service, FAS, to have at least 850 full-time employees during fiscal years 1987-89. As of February 28, FAS had 790 full-time employees, a FAS spokesman said. Reuter 

CATERPILLAR <CAT> WORKERS TOLD TO END SIT-IN

The U.S. Caterpillar Tractor Co was granted a court injunction ordering some 300 workers to end their 10-week occupation of the firm's factory, court sources said. The workers, staging a sit-in to protest Caterpillar's decision to close the plant with the loss of 1,221 jobs, are due to decide on their next step at a mass meeting tonight. Yesterday a spokesman for the workers said they would comply with the law if forced out. Caterpillar wants to dismiss the workforce and close the plant in May. Reuter 

BAT SHARES UNDERVALUED, SAY STOCK MARKET ANALYSTS

BAT Industries Plc <BTI.L> 1986 results, which were at the upper end of market expectations, showed the company was in a strong position and that its shares were probably undervalued, share analysts said. BAT shares were down at 524p in late afternoon trading after a previous 535p close. They touched a high of 538p earlier on news of a 19 pct rise in annual profits to 1.39 billion pre-tax. Stock market analysts said today's generally weak stock market plus unwinding of positions after heavy buying of BAT shares in the run-up to the results caused the fall in the share price. "In the current market, people almost expect companies to beat expectations," said one analyst, adding that pretax profits of 1.35 to 1.40 billion stg had been forecast. BAT's 1986 figure of 1.39 billion stg compared with a 1985 pretax profit of 1.17 billion. Brokers noted that BAT's shift away from its underperforming industries and the decreasing share of the tobacco portion of the group were seen as good signs. BAT Chairman Patrick Sheehy told a news conference that the tobacco sector of the company had declined to 50 pct from 74 pct four years ago. Sheehy said he could see the tobacco portion of the company declining further as other sectors increased in importance. He said BAT was looking to expand in the area of financial services, in particular in the U.S. Sheehy also said the group had "no sizeable acquisitions" in sight in the near future. Analysts said BAT's increasingly good performance in the U.K. Insurance area was encouraging. Its declining debt-to-equity ratio of currently about 16 pct also made it likely that BAT would soon be looking to make major acquisitions, they said. Reuter 

BALDRIGE SAYS U.S. WILL NOT LET JAPAN DOMINATE WORLD ELECTRONICS MARKET

REICHHOLD <RCI> EXPLORING SALE OF EUROPEAN UNIT

Reichhold Chemicals Inc said it is exploring the sale of its stake in its European subsidiary Reichhold Chemie AG. Reichhold Chemie Ag, headquartered in Rausen, Switzerland, had sales in excess of 75 mln dlrs last year. It is 83 pct owned by Reichhold. The rest is owned by German and Swiss shareholders. Reichhold said it is seeking the sale to focus on its adhesives business. Reuter 

AMERICUS TRUST FOR MERCK <MRK> NOW EFFECTIVE

Alex Brown and Sons Inc said an Americus Trust for Merck and Co Inc shares was declared effective by the Securities and Exchange Commission. Merck common stock tendered into an Americus Trust is converted into trust units on a one-share-for-one-unit basis. Units may then be broken into their prime and score components and traded separately. The prime entitles the holder to dividend payments and to any stock price increase up to a limit of 200 dlrs for Merck shares. The score components entitles holders to profit from future price increases above 200 dlrs, it said. Reuter 

UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT"

INT'L BROADCASTING <IBCA> SETS REVERSE SPLIT

International Broadcasting Corp said shareholders at its annual meeting approved a one for 25 reverse stock split. The split will be effective after completion of filing requirements, it said. New certificates will be needed, it added. The media company said it currently has 40,950,000 common shares issued and outstanding and, upon completion of the reverse split, will have 1,638,000 shares outstanding. Reuter 

BI INC <BIAC> SETS REVERSE SPLIT

BI Inc said it is implementing a one-for-15 reverse split to shareholders of record today. It said any fractional shares will be redeemed for cash, reducing its free-trading stock in public hands to 1,300,000 shares from 20 mln and its total shares outstanding to 1,993,000 from 29.9 mln. Shareholders approved the reverse split in October. Reuter 

BALDRIGE SAYS JAPAN MUST OPEN ITS MARKETS

Commerce Secretary Malcolm Baldrige said the United States will not stand idly by and let Japan dominate the world electronics market. Baldrige told the Senate Finance Committee the United States would insist Japan open its markets to U.S. products as the U.S. market is open to Japanese products. Asked after his testimony if this meant the United States would close its markets to Japan if they did not open theirs, Baldrige said, "I'm not prepared to say that, but it certainly would be one of the alternatives studied." Baldrige said in his testimony Japan had a closed supercomputer market and a restricted telecommunications market. "I can only conclude that the common objective of the Japanese government and industry is to dominate the world electronics market. Given the importance of this market to U.S. industry in general and our defense base in particular, we cannot stand by idly," he said. He said it was these concerns about national security which led him to express reservations over the proposed acquisition of Fairchild Semiconductor by Fujitsu of Japan. Reuter 

K MART <KM> UNIT BUYS TEXAS LAND

K Mart Apparel Corp, a unit of K Mart Corp, said it purchased 35 acres 15 miles east of downtown Dallas from Baker Associates No. 2 Joint Venture. Financial details were not disclosed. K Mart said it will construct a 456,000-square-foot distribution center and 15,000 square feet of office space on the site. Reuter 

BASF CORP YEAR NET

Net 105 mln dlrs vs 39 mln Sales 3.6 billion vs 2.6 billion NOTE: Wholly-owned by <BASF AG> of West Germany. Reuter 

TORONTO DOMINION BUYING MONTREAL EXCHANGE SEAT

<Toronto Dominion Bank> said it agreed to purchase a seat on the Montreal Stock Exchange for 40,000 dlrs, subject to regulatory and exchange approval. The move came two weeks after Toronto Dominion paid 195,000 dlrs for a seat on the Toronto Stock Exchange, which made it the first bank to apply for membership on a Canadian exchange. The Toronto and Montreal exchanges are Canada's two biggest equity markets. Proposed Canadian government legislation would allow banks full participation in the securities business after June 30. Toronto Dominion has owned a discount brokerage since 1984. Reuter 

LEAR SIEGLER DEPOSITS 79.4 MLN DLRS TO SECURE NOTES, EFFECTS REORGANIZATION

J.A.M. <JAMY> WINS 1.5 MLN DLR CONTRACT

J.A.M. Inc said it won a 1.5 mln dlr contract to produce and develop a series of courses on computer and data processing systems for use by colleges and businesses. J.A.M. Executive Vice President Anthony Busch said he could not disclose the name of the firm that awarded J.A.M. the contract because of a confidentiality agreement. But he described it as a leading supplier of educational materials. J.A.M., headquartered in Rochester, N.Y., develops training programs and supplies video production services. Reuter 

UNISYS <UIS> NEW MAINFRAME INTRODUCTION NOT SET

Unisys Corp vice chairman Joseph Kroger said the company's new series 1100 mainframe computer products will not be available for at least a year. At a press conference introducing new products in the V500 computer series, Kroger said Unisys's new Super 90 and Mercury computers will not be available until after March 1988. The products are being developed for addition to the 1100 series. No specific time frame had been set for introduction of the Super 90, which will be based on the existing 1190 mainframe, or the Mercury, which will be a new computer, a Unisys spokesman said. "There is a lot of pent-up customer demand for the products," Kroger told Reuters. But Unisys has not lost any customers currently using its 1190 mainframes because of the wait for the new products, he said. At the press conference, Kroger said Unisys is not developing a one-megabit computer memory chip but will probably buy them when appropriate from Japanese suppliers. In response to a question, Kroger indicated first quarter orders should be up from a year ago, with international business good and the U.S. market still "difficult." Reuter 

MONTANA POWER CO <MTP> VOTES QUARTERLY DIVIDEND

Qtly div 67 cts vs 67 cts prior qtr Pay 30 April Record 10 April Reuter 

UAL <UAL> SAID TRUMP TALKED WITH UAL CHAIRMAN

Real estate magnate Donald Trump told UAL Inc Chairman Richard Ferris that he was interested in UAL stock as an investment, according to a UAL executive. Trump, who was unavailable for comment, is believed by market sources to have a sizeable position in UAL, which he began accumulating several weeks ago. UAL stock today was up three at 63 in active trading. "They (ferris and Trump) talked last week. Apparently, Trump said he was interested in it as an investment. He didn't say how much stock he had. He didn't say what he would or wouldn't do about it," said UAL senior vice president Kurt Stocker. Trump is believed to have close to five pct of UAL's stock, market sources said. Reuter 

GROLIER <GLR> DEBT UPGRADED BY MOODY'S

Moody's Investor Service Inc said it upgraded Grolier Inc's nearly 116 mln dlrs of debt. Raised were the company's senior debentures raised to Ba-3 from B-3 and convertible subordinated debentures to B-2 from B-3. The rating agency cited an improvement in profitabiliy of Grolier's primary publishing businesses. Moody's said the company has lowered its financial leverage as well as its dependence on the retail sale of encyclopedias. Grolier has also reduced its exposure to developing countries, Moody's noted. Reuter 

TEAM INC <TMI> 3RD QTR FEB 28 NET

Shr profit five cts vs loss 18 cts Net profit 91,000 vs loss 355,000 Revs 11.5 mln vs 11.7 mln Nine mths Shr profit six cts vs loss 1.45 dlrs Net profit 127,000 vs loss 2,846,000 Revs 31.8 mln vs 34.9 mln Reuter 

TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT

RSI CORP <RSIC> 2ND QTR FEB 28 NET

Shr 33 cts vs 13 cts Net 2,266,000 vs 849,000 Revs 24.1 mln vs 16.0 mln 1st half Shr 61 cts vs 24 cts Net 4,236,000 vs 1,619,000 Revs 47.4 mln vs 33.5 mln NOTE: Share after stock splits. Net includes discontinued operations loss four cts shr vs nil in quarter and loss seven cts vs gain one ct in half. Reuter 

RCM TECHNOLOGIES INC <RCMT> 1ST QTR JAN 31 LOSS

Shr loss one ct vs loss one ct Net loss 89,844 vs loss 85,731 Revs 3,384,726 vs 4,646,285 Reuter 

MCCLAIN INDUSTRIES INC <MCCL> 1ST QTR DEC 31 NET

Shr 24 cts vs 13 cts Net 380,325 vs 211,183 Sales 5,046,578 vs 3,941,764 NOTE: Current year net includes gain from sale of Sterling Heights, Mich., plant of 174,000 dlrs. Another 698,000 dlrs of gain from sale sale has been treated as deferred income. Reuter 

FED OFFERS TO BUY ONE BILLION DLRS OF BILLS FOR CUSTOMER, AFTER NOTE AUCTION

SYNALLOY <SYO> ENDS PLANS TO SELL UNIT

Synalloy Corp said it has ended talks on the sale of its Blackman Uhler Chemical Division to Intex Products Inc because agreement could not be reached. The company said it does not intend to seek another buyer. Reuter 

C-I-L ACQUIRING TRIMAC'S STAKE IN TRICIL

<C-I-L Inc> said it would exercise its right to acquire <Trimac Ltd>'s stake in their jointly owned Tricil Ltd for 91 mln dlrs, with closing expected May 22. C-I-L added that the final price could be less, however, depending on an Ontario court ruling resulting from a previously reported legal action launched by C-I-L. Mississauga, Ontario-based Tricil is a waste management company with operations in the U.S. and Canada. Reuter 

EC INFLATION STARTS TO RISE AGAIN IN FEBRUARY

Inflation in the European Community, which fell to its lowest since the 1960s between November and January, started to take off again last month, figures from the EC statistics office Eurostat showed. Consumer prices were on average three pct higher than in February 1986, the office said. This compared with a year on year rise of 2.7 pct in January, the lowest for 25 years, and was the highest figure since October. Prices rose in February by 0.3 pct from January, after rises of 0.4 pct in January and of 0.2 pct in each of the last three months of 1986. REUTER 

PANTERA'S <PANT> TO BUY TEN PIZZA RESTAURANTS

Pantera's Corp said it agreed to buy ten pizza restaurants in southeastern Colorado from creditors foreclosing on the facilities. The purchase price includes 1.25 mln dlrs in cash and company stock, it said. Separately, Pantera's said it issued an area development agreement with a franchisee group for northeastern Colorado, including the Denver area, for the opening of about 20 franchised Pantera's pizza restaurants. Reuter 

ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY

ENERGY/U.S. OIL OUTPUT

Energy Secretary John Herrington has proposed several ways to boost U.S. oil production, but he said all would cost the Treasury money and will come under close White House scrutiny before action is taken. One measure he said he favored would raise the depletion allowance to 27.5 pct on new oil and gas production as well as production using enhanced extraction methods. Herrington said such a plan would cost 200 mln dlrs a year. The White House, reacting, said it did not favor amending the tax code, but would look at the proposal. Herrington's proposals to spur production were made along with the release last week of the energy department's report on energy and the national security. The report said U.S. oil imports, rapidly rising, could hit 50 pct by the mid 1990s and have potentially damaging implications for national security. He has said since in speeches and at news conferences that any plan he would back to spur lagging domestic oil production would have to meet three criteria--increase production, not cause economic dislocation, and be low cost to the taxpayer. Herrington said an import fee would meet the first test, spurring production but fail the second and third. He said it would raise production and return 120,000 oil workers to their jobs, but at the same time it lifted oil prices, the higher prices would cost 400,000 jobs nationwide and cut the gross national product by 32 billion dlrs. A tax on gasoline, he said, would fail the first criteria by not increasing domestic production. In any case, U.S. officials say, President Reagan remains firmly opposed to an import fee and a gasoline tax. Options which meet Herrington's criteria include: - Loan-price guarantees to shield banks from defaults by borrowers because of lower oil prices. It was estimated that if oil fell to five dlrs a barrel it could trigger defaults that could cost the government an estimated 15 billion dlrs. - A five pct tax credit for exploration and development. It would raise oil and gas production the equivalent of 325,000 barrels a day, at a cost of 740 mln dlrs a year. - A five pct credit only for geological and geophysical expenditures. It would increase production by 80,000 barrels a day, at a cost of 65 mln dlrs. - Lower bid minimums on outer continental shelf acreage to spur exploration. A drop from the present 150 dlrs per acre for the typical 5,760 acre tract to 25 dlrs per acre would lower the cost of the standard tract lease to 144,000 dlrs. Herrington also pressed anew for existing Administration proposals to deregulate natural gas, which he said would cut the need for imported oil by 300,000 barrels daily. He also called again for Congressional approval to explore off the continental shelf, which may hold more than 12 billion barrels of oil, and the Arctic National Wildlife Refuge, which may hold nine billion barrels. Herrington said he understood the Reagan's reluctance to amend the newly enacted tax code to fund some of these proposals, but added he hoped his department's energy/security study would make a strong case for the need to help the struggling domestic oil industry. Another move Herrington said he will press anew, even though it had been rejected earlier by the White House, is to raise the fill-rate for the Strategic Petroleum Reserve to 100,000 barrels a day from its planned 1988 rate of 35,000. This, he said, would further bolster national security in case of an oil-supply disruption. Reuter 

TODD SHIPYARDS <TOD> OMITS COMMMON DIVIDEND

Todd Shipyards Corp said it omitted payment of the quarterly dividend on its common stock and lowered the dividend on its series A preferred stock to 75 cts from 77 cts a share. Todd said the 75 ct preferred dividend will be paid May one to shareholders of record April 15. The company said it omitted the common dividend to cover both losses from a commercial ship conversion contract and increased reserves for previously announced discontinued shipyard operations. In addition, the company said its lenders agreed to temporarily reduce the net worth requirement of its revolving credit and term-loan pact to 140 mln dlrs from 130 mln. The reduction will hold through May 15, it said. Todd said the reduction in the net worth requirement allowed for the payment of the preferred dividend and prevented it from violating covenants of its credit agreement. The company said it is also negotiating with its lenders to extend the reduced net worth terms beyond May 15. Todd added that it has suffered financially because of the U.S. Navy's unwillingness to release certain retentions under completed ship construction contracts and a general decrease in U.S. military spending. Reuter 

IMO DELAVAL <IMD> SETS INITIAL DIVIDEND

Imo Delaval said its board declared an initial quarterly dividend of 14 cts per share, payable April 24 to holders of record on April 6. Reuter 

FED TO PURCHASE TREASURY BILLS FOR A CUSTOMER

The Federal Reserve will purchase approximately one billion dlrs of U.S. Treasury bills for a customer after the Treasury's auction of four-year notes, a Fed spokesman said. The spokesman said the Fed intends to purchase bills maturing in up to six months. Dealers said Federal funds were trading at 6-3/16 pct when the Fed announced the operation. Many had expected to Fed to buy bills for itself, thereby adding permanent reserves to the banking system. Since it did not do so today, this Fed move is likely tomorrow. Reuter 

GOULD <GLD> INTRODUCES NEW MINI SUPERCOMPUTERS

Gould Inc said it is introducing a new generation of very high performance mini supercomputers for intensive engineering applications. Called the NPL, the mini supercomputers use Gould's UTX/32 operating system, which is a compatible multi-processor extension of the UNIX operating system consisting of complete AT and T System V and Berkeley BSD 4.3 environments, company officials said at a teleconference. "The introduction of the NPL family of mini supercomputers, is by far Gould's most significant computer line developed to date," chairman James McDonald said. Patrick Rickard, computer systems president, said that he expects sales of NPL family computers to account for 20 pct of the division's revenues for the first year after its introduction, and increase to 80 pct of revenues in five years. Computer operations accounted for one third or about 300 mln dlrs of Gould's total revenues for 1986 of 908.8 mln dlrs, a company spokesman said. The NP1, the first series of the new family, uses an open systems architecture, including parallel and high speed vector processing and "massive" memory to achieve its supercomputing capability, Gould officers said. The NP1 family will form the foundation for new systems which are expected to be brought to market through the 1990s, McDonald said. The computers are expected to have applications in science and engineering, in aerospace and defense and extend into other areas such as medical sciences, Rick Baron, senior director of marketing development said. Gould said it priced and packaged the NP1 at a cost which will provide the power and advantages of a traditional supercomputer at a fraction of the cost. The NP1 product line includes several models priced from 395,000 dlrs to 2.9 mln dlrs, Gould officials said adding that the company has already signed orders for eight NP1 systems. The low-end NP1 models will be available in the 1987 third quarter and the high-end will be available in the 1988 first quarter, they said. According to Gould officials, the NP1 cost 50 mln dlrs to develop and the company plans to spend between 100 to 150 mln to develop the rest of the family line. Between now and 1995, the company expects to ship two to three billion dlrs of NP1 mini supercomputers. Offering up to 96 mln Whetstone instructions per second and 320 mln floating point operations per second, the largest of the new systems, Model 480, incorporates up to four billion bytes of physical memory, they said. The NP1 family has connectability but not compatability with IBM and Xerox computers, a company spokesman said. Reuter 

NATIONAL COMPUTER SYSTEMS INC <NLCS>4TH QTR NET

Shr 25 cts vs 31 cts Net 4,798,000 vs 5,380,000 Revs 65.3 mln vs 58.2 mln Avg shrs 19.2 mln vs 17.5 mln Year Shr 84 cts vs 89 cts Net 15,750,000 vs 15,191,000 Revs 262.1 mln vs 215.8 mln Avg shrs 18.8 mln vs 17.1 mln Reuter 

SEC SANCTIONS ACCOUNTANTS KMG MAIN HURDMAN

The Securities and Exchange Commission sanctioned the national accounting firm KMG Main Hurdman for improper professional conduct. It said the New York firm consented to the entry of the commission's order without admitting or denying the finding. The proceedings arose from a 1982 audit of the financial statement of the First National Bank of Midland, Texas, and 1983 and 1984 audits of financial statements of Time Energy Systems, Inc, Houston. Midland was declared insolvent in 1983. The SEC ordered that any new review of Main Hurdman procedures to include the adequacy of consultations between the firm's main office and its local offices and the implementation of the firm's policies. It said the Midland office conducted the Bank audit, although some senior partners in New York were consulted, and its Houston office conducted the Time Energy audits. The SEC said also that Main Hurdman agreed that if it is acquired by a larger firm, its practices will be integrated into the combined firm, including training programs and quality control reviews. Reuter 

ALLIED-SIGNAL <ALD> TO SELL LINOTYPE UNIT

Allied-Signal Inc said it agreed to sell its Linotype Group unit to <Commerzbank AG> of West Germany for an undisclosed amount. Allied-Signal said Commerzbank is expected to offer shares of the unit to the public later this year. The company said the agreement is subject to approval by the government and its shareholders. The Linotype unit, based in Eschborn, West Germany, had revenues in 1986 of more than 200 mln dlrs, the company said. The company said top management of Linotype plan to remain with the unit, which has operations in the United States, West Germany and the United Kingdom. Allied-Signal announced in December that it planned to sell the Linotype unit as well as six other businesses in its electronics and instrumentation segment. Linotype is a supplier of type and graphics composition systems. Reuter 

CONTINENTAL HEALTH AFFILIATES INC <CTHL> 4TH QTR

Shr 10 cts vs five cts Net 512,000 vs 230,000 Revs 16.8 mln vs 9,025,000 Year Shr 55 cts vs 34 cts Net 2,662,000 vs 1,541,000 Revs 57.5 mln vs 32.3 mln Reuter 

CANADA SETS OIL INDUSTRY AID PACKAGE

Canada's federal government will provide a 350 mln dlr oil industry aid package that includes cash incentives designed to cover one-third of a company's oil and gas exploration and development costs, Energy Minister Marcel Masse announced. The aid program will inject about 350 mln dlrs a year into the oil and gas industry and could lead to more than one billion dlrs in new investment, Masse told a news conference. The program will affect drilling done anywhere in Canada on or after April 1, 1987. Masse told reporters that the government's oil industry aid package is aimed at small and medium sized companies. The aid package, called the Canadian Exploration and Development Incentive Program, will restrict the total payments that any individual company can claim to 10 mln dlrs a year. Masse said the program will probably generate new employment equivalent to 20,000 people working for a year. He said oil industry aid is needed because exploration and development spending dropped by at least 50 pct since world oil prices fell during the first half of 1986. Energy Minister Masse said the federal government decided to provide cash incentives so a large number of non-tax paying companies, mainly small Canadian firms, will receive the full value of the incentive. Such companies would not immediately benefit from tax benefits, he said. The federal government also wanted to deliver an aid program outside the tax system. Finance Minister Michael Wilson is now reviewing Canada's tax system and plans to announce tax reform proposals later this spring. An important feature of the aid program is a decision to let companies issue flow-through shares, allowing investors to benefit from the subsidy rather than restricting benefits to only participating companies, he said. Allowing flow-through shares under the program will make it easier for companies to attract investors in exploration and development, Masse said. He told reporters his department is still considering whether to allow partnerships and other entities to qualify for the subsidy. Reuter 

CONTINENTAL <CTHL> REPURCHASES NOTES

Continental Health Affiliates Inc said it repurchased about 30 pct of its June 1985 Swiss franc convertible bond offering at prices below par. The company said it continues to hedge the balance and seek opportunities to repurchase below par an increasing percentage of the bond issue. Continental said it operates and has under development 1,943 nursing home beds and 404 residential health care beds. It said that by sustaining its growth momentum, these numbers could more than double by the end of the year. Reuter 

<ATLANTIS GROUP INC> TO OFFER SHARES, NOTES

Atlantis Group Inc said it has filed for an initial public offering of 1,500,000 common shares and a 50 mln dlr offering of subordinated notes due 1997. The company said Robinson-Humphrey Co Inc and Sutro and Co Inc will manage the share offering and American Express Co's <AXP> Shearson Lehman Brothers Inc and Robinson-Humphrey the debt offering. Proceeds will be used to reduce debt and seek acquisitions. Atlantis is involved in plastics and furniture manufacturing and in property-casualty insurance. Reuter 

MOUNTLEIGH GROUP SEEKS 100 MLN STG FACILITY

<Mountleigh Group Plc>, a U.K. Property company, is seeking a 100 mln stg multicurrency credit facility, Union Bank of Switzerland (London branch) said. The revolving, evergreen facility will be completely underwritten and the borrower will be able to issue cash advances, sterling bankers acceptances and sterling commercial paper through a tender panel. There will be a cap of 50 basis points over the London Interbank Offered Rate (Libor)on any drawings for advances and a 50 basis points commission on acceptances. There will be a facility fee of 3/16 pct. Banks are being invited to join at 20 to 25 mln stg for 12-1/2 basis points, at 10 to 15 mln stg for 10 basis points and at five to 7.5 mln stg for 7.5 basis points. The facility, which can only be cancelled after underwriters provide 61 months notice to the borrower, will refinance some of Mountleigh's existing debt. Reuter 

SOUTHWEST FOREST <SWF> SETTLES STRIKE

Southwest Forest Industries said union workers at its Snowflake, Ariz., pulp and paper mill ratified a new three-year contract, ending a strike that halted production at the facility on March 17. The new contract with the United Paperworkers International and International Brotherhood of Electrical workers provides for a wage and benefit increase of about three pct over three years and increased employee contributions to health care premiums, Southwest said. The mill, which has an annual capacity of some 282,000 tons of newsprint and 159,000 tons of linerboard, is scheduled to resume production on March 26, the company also said. Reuter 

COCOA TALKS SLOW AT CRUCIAL STAGE - DELEGATES

International Cocoa Organization (ICCO) talks on buffer stock rules have slowed during a crucial phase of negotiations, delegates said, but they remained confident about prospects for reaching agreement by Friday. Cocoa producers, European Community (EC) consumers and all consumers separately reviewed technical details of a buffer stock rules package distributed yesterday. The buffer stock working group of consumers and producers was set to meet later today to debate the proposal jointly for the first time, they said. Delegates said major sticking points were likely to be the amount of non-member cocoa allowed to be bought for the buffer stock, and the fixed price differentials at which different origin cocoas will be offered to the buffer stock manager. Producers would prefer that non-member cocoa not be included in the buffer stock because, if it is, countries such as Malaysia benefit from the cocoa agreement without joining it, the delegates said. Reuter 

MACK TRUCKS <MACK> DEBT AFFIRMED BY S/P

Standard and Poor's Corp said it affirmed Mack Trucks Inc's 40 mln dlrs of BB-plus senior debt. The agency cited expectations that Mack's profitability will improve over the marginal levels of last year. S and P noted that extensive cost-cutting programs are under way at Mack, including the relocation of truck assembly operations to a new plant in South Carolina from Allentown, Pa. S and P said that with an improved cost structure, Mack can compete more vigorously for market share without reverting to a loss position. In addition, cash flow from operations should benefit from planned working capital reductions. Reuter 

EURATOM ECU BOND MARKS ROME TREATY ANNIVERSARY

Euratom is issuing a 145 mln ECU eurobond due April 24, 1997, paying 7-3/8 pct and priced at 101-1/8 pct, lead manager Banque Paribas Capital Markets said. The bond will be available in denominations of 1,000 and 10,000 ECU and will be listed in Luxembourg. Fees comprise 1-3/8 selling concession and 5/8 pct management and underwriting combined. A Paribas official said Euratom had timed the issue to coincide with the 30th anniversary of the Treaty of Rome. Reuter 

NEWMONT GOLD <NGC> SEES GOLD SALES RISING

Newmont Gold Corp expects gold sales in 1987 to rise about 22 pct to 577,000 ounces from 1986's 474,000 ounces, the company said in its annual report. Newmont Gold, 95 pct owned by Newmont Mining Corp <NEM>, said it expects significant increases in gold sales in 1988 and 1989 as well. Reuter 

MESSIDOR TO MERGE WITH TRITON BELEGGINGEN

Messidor Ltd said it signed a letter of intent to acquire 100 pct of the outstanding shares of Triton Beleggineng Nederland B.V., a European investment portfolio management company. If approved, two mln shares of stock held by the Messidor Ltd officers and directors would be issued to Triton shareholders. Triton will become a subsidiary of Messidor, it said. If approved, the president of Triton, Hendrik Bokma, will be nominated as chairman of the combined company. There are about 1.5 mln Messidor units issued to the public consisting of one share of common stock, four Class A common stock warrants, four class B common stock warrants and four class C common stock warrants. In addition there are four mln restricted shares outstanding. Messidor said the acquisition is expected to be completed by June three. Reuter 

IMMUNOGENETICS <IGEN> TO ENTER LIPOSOME FIELD

ImmunoGenetics Inc said it has entered the liposome technology field through its majority owned subsidiary, Molecular Packaging Systems Inc. Liposomes are small sacks of lipid, or fat, membranes arranged in layers like an onion. These sacks can carry a variety of agents that are released over a period of time into the body as the onion-like layers break down. It said Molecular has developed a versatile low-cost method for encapsulating a broad range of health care and industrial products, including human hemoglobin which transports oxygen in the blood. Immunogenetics also said Molecular's liposomes, called Micropak, can carry more than five times the amount of particles than conventional liposomes. The company also said its technology for encapsulating hemoglobin may prove helpful in preventing the spread of hepatitis and the AIDS virus in blood transfusions as all viruses and foreign agents are moved during preparation of the hemogloblin. Reuter 

SMITH BARNEY ANALYST CUTS HERCULES <HPC> RATING

Smith Barney, Harris Upham and Co analyst James Wilbur removed Hercules Inc from the firm's recommended list, citing the firm's moves into the aerospace business, traders said. Hercules fell 2-1/4 to 59-1/4 on 595,000 shares. Wilbur was not immediately available for comment. Sources said Wilbur believes Hercules will be successful in its diversification, but he told clients the stock market is more receptive now to chemical companies than aerospace companies. Reuter 

S/P UPGRADES CONSUMERS POWER'S SENIOR AND SUBORDINATED DEBT

NAVISTAR <NAV> SEES HIGHER CAPITAL SPENDING

Navistar International Corp expects its fiscal 1987 capital spending to rise to 100 mln dlrs, up from 74 mln dlrs a year ago, Chairman-elect James Cotting told reporters after the annual meeting. Cotting said much of the spending will go toward modernization of the company''s painting operations at its Springfield, Ohio truck assembly plant. The balance will be used to increase productivity at its various facilities. In answer to a question, Neil Springer, who on April 1 becomes chairman of the company's new truck and engine holding company, Navistar International Transportation Corp, said the company's goal is to reduce costs 25 pct by 1990. Noting that purchased material now accounts for 81 pct of its cost of production, Springer said Navistar intends to enter similar relationships to one it has with Dana Corp <CDN>, in which the two companies are coordinating design, manufacture, distribution and service of components to cut costs. Springer said because of overcapacity in some sectors, price discounting will continue to plague the truck manufacturing industry. He said the heavy truck industry is operating at 65 pct of capacity, up 10 pct from a year ago with medium truck operating at 73 pct of capacity, about level with a year ago. Springer said Navistar itself is operating at "over 70 pct of capacity" in heavy trucks and at more than 90 pct in medium trucks. Asked when Navistar would begin making acquisitions, Springer said "We're ready now, but we have no specific timetable." Earlier, at the annual meeting, stockholders gave a standing ovation to retiring Chairman Donald Lennox, who during an eight-year tenure was cited for redirecting the company toward profitability. Lennox told reporters he was assuming chairmanship of privately held Schlegel Corp, Rochester, N.Y. He said he hoped to take the 100-year-old manufacturer with 300 mln dlrs in sales public within two years. Reuter 

MOHAWK DATA <MDS> AFFILIATE IN SERVICE DEAL

Mohawk Data Sciences Corp's Momentum Technologies Inc affiliate said it has signed an agreement to provide support and service for all Fivestar Electronics Inc branded products nationwide. Value was not disclosed. Reuter 

CONSUMERS POWER <CMS> DEBT RAISED BY S/P

Standard and Poor's Corp said it raised Consumers Power's senior debt to BBB-minus from BB-plus and its subordinated debt to BB-plus from BB-minus. The rating agency also affirmed Consumers Power's BB-minus preferred stock and B-rated preference stock. The utility has about 3.3 billion dlrs of debt outstanding. S and P cited rate relief stabilization in 1985, bank debt restructuring and the implementation of cash conservation measures. Plans to retire or refinance high-cost debt should improve the company's credit quality, S and P added. Reuter 

ENCOR ENERGY CORP PLANS 125 MLN DLR DEBENTURE OFFER

PACIFIC GAS <PCG> SEEKS PURCHASE RULE CHANGE

Pacific Gas and Electric Co said it will ask the Federal Energy Regulatory Commission to change federal regulations requiring the utility to buy electricity from unregulated private producers. Prices paid for this power under long term contracts signed before last year's fall in world oil prices now are more than twice as high as the actual value of the electricity, Pacific Gas said. Under the 1978 Public Utility Regulatory Policies Act utilities are required to buy electricity from cogeneration facilities, which produce both steam and electricity. Since 1980, Pacific Gas has signed power purchase agreements, required by the law, with long-term price guarantees for more than 8,480 megawatts of capacity from private producers, the company said. About 1,870 MW of that capacity is already on line, and accounted for about eight pct of the company's total energy sales in 1986, Pacific Gas said. The company said it will ask FERC to amend the rules requiring purchase of this power so that the price paid for the electricity reflects current market values, and that utilities be required to buy only electricity needed in the near term. Contracts with cogeneration and other small power projects could cost Pacific Gas' consumers as much as 857 mln dlrs annually by 1990, the company said. The 857 mln dlrs represents the difference between what Pacific Gas would pay for power from private producers and the cost to the company to produce the power on its own or buy it elsewhere, Pacific Gas said. Reuter 

ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN

BRAZIL PLANS NEW ECONOMIC STRATEGY FOR GROWTH

Brazil is preparing a new economic strategy intended to protect domestic growth, Finance Ministry sources said. A presidential spokesman said President Jose Sarney had authorised the government's economic team to prepare the new plan as soon as possible. Finance Minister Dilson Funaro said last night the plan would reflect "an important battle to protect the country's development and keep it from recession." Funaro, who helped lead the anti-inflation Cruzado Plan launched in February 1986, has come under increasing attack over the past few days following the resignation of Planning Minister Joao Sayad on March 17. Observers say the plan has failed to stabilise the country's economy. Sayad submitted a new package calling for a 90-day prices and a wage freeze, but met opposition from Sarney and Funaro. Foreign Ministry sources said the new strategy was being prepared by economists Persio Arida and Andre Lara Resende, both former Central Bank officials said to have played leading roles in the Cruzado Plan. The new plan will define the terms on which Brazil will seek rescheduling of its 109 billion dlr foreign debt. On February 20, Brazil suspended servicing of 70 billion dlrs of debt to private foreign banks. Funaro said last night Brazil wants a rescheduling program spread over four years, and added that it had to include new loans to keep the domestic economy growing. "In the past two years Brazil paid 24 billion dlrs in servicing of its foreign debt, while only getting two billion dlrs in new loans," Funaro said. REUTER 

MIDDLE SOUTH <MSU> TO FORM NEW DIVIDEND POLICY

Middle South Utilities Inc is taking a conversative approach to formulating a new common stock dividend policy, chairman Edwin Lupberger said. He told securities analysts that when the company's common dividend is resumed, "the initial rate will appear conservative to you by industry standards and in relation MSU's net income and cash flow." "Our progress will determine how soon we can reinstate a dividend to our common stockholders, he said." The company last paid a common dividend of 44.5 cts a share in July 1985. Lupberger told the analysts that the company's primary objective is "to create financial strength, enough strength so that what happened to us and our stockholders over the past couple of years never happens again." The company has faced regulatory challenges to rates proposed to cover the cost of its Grand Gulf nuclear plant. He said Middle South's net income is expected to post "modest growth" over the next three years. In 1986, the company earned 451.3 mln dlrs or 2.21 dlrs a share on revenues of 3.49 billion dlrs. Lupberger said, "A good portion of the improvement projected for the next three years comes from keeping the lid on operating and maintenance expenses." Reuter 

UK POLL SHOWS SURGE FOR CENTRIST ALLIANCE PARTIES

A British voter opinion poll in tomorrow's Today newspaper shows a surge in support for the centrist Alliance grouping and a fall for both the ruling Conservatives and the Labour opposition party. The Marplan poll gives the Conservatives 36 pct, the Liberal/Social Democratic Alliance 31 pct, and Labour 31 pct as well. A Marplan survey last month gave the Tories 38 pct, the Alliance 21 pct, and Labour 37 pct. The latest poll would, if translated into an election result, produce a hung parliament, analysts said. That should dampen speculation of an early June election, they added. Reuter 

EMERSON RADIO <EME> SELLS DEBT PRIVATELY

Emerson Radio Corp said it has sold 33 mln dlrs of 8-3/8 pct senior notes due 1997 to institutional investors. The company said prepayment provisions will make the average life about seven years. It said funds will be used to help finance growth. Reuter 

SOLAR SYSTEMS SUN DANCE <SSDN> EXTENDS WARRANTS

Solar Systems by Sun Dance said its board has extended the date until which its 1986 warrants and redeemable warrants may be exercised at 50 cts each to April 30 from March 31. It said it plans no further extension. Reuter 

TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES

U.S. SUGAR POLICY MAY SELF-DESTRUCT, CONGRESSMAN

A leading U.S. farm-state Congressman, Jerry Huckaby, D-La., warned he will press next year for legislation to control domestic production of sweeteners, perhaps including corn sweeteners, if the industry fails to voluntarily halt output increases this year. "We're moving toward a direction where we could self-destruct (the U.S. sugar program)," Rep. Huckaby, chairman of the House agriculture subcommittee dealing with sugar issues, told Reuters in an interview. Huckaby, who told U.S. sugarbeet growers earlier this year they must halt production increases, said he will deliver the same message to Louisiana sugarcane growers Friday. He also said he will soon talk with corn refiners on the subject. Huckaby said the campaign to urge a halt to domestic sweetener output increases is an effort to forestall further cuts in the sugar import quota, now at one mln short tons. "I think if we're talking about dropping (the quota) another half mln tons, lets say, you're getting to the point where the program might not work," he said. "Ideally, I'd like to freeze things right where we are," said Huckaby, leading advocate for sugar growers in Congress. A freeze would mean domestic sugar production at about the current level of 6.5 mln tons, the corn sweetener share of the U.S. market staying at just over 50 pct, and U.S sugar imports holding at about 1.2 mln tons, Huckaby said. A decision on whether to seek legislation will not be made until 1987 output numbers are known late this year, he said. "I feel like if we didn't expand production, we could probably hold where we are indefinitely, or at least through the 1985 farm bill without any changes (in the sugar program)," Huckaby said. However, much depends on whether high-fructose corn syrup producers continue to expand their share of the U.S. sweetener market from just over 50 pct, Huckaby said. He noted most estimates are that corn sweeteners will capture at most only another 10 pct of the sweetener market in the U.S. But he said if there were an economic breakthrough in the production of a new crystalline corn sweetener which further expanded the corn sweetener share, then U.S. sugar imports might be eliminated and U.S. sugar output severely reduced. Huckaby said he will deliver this message to corn refiner companies such as A.E. Staley and Archer Daniels Midland soon. "This program is advantageous to the corn users. They have some natural, legitimate self-interest in seeing that the program is preserved," Huckaby said. Huckaby said he has asked sugar industry representatives to think about how domestic output could be controlled, either through production allocations, acreage or marketing controls. Huckaby also said he would be seeking guidance from the Justice Department to determine if it would be legal to ask corn refiners to limit production. "I don't know if we will go this route, but if we do there's a question in my mind at this point in time; can you do that legally?" he said. Asked if he would proceed with production controls without the support of corn refiners, Huckaby said "You build a fragile house if you do it that way." Huckaby said he understands why U.S. cane and beet farmers have expanded production, because high sugar price support means returns from sugar are higher than competing crops such as soybeans and grain. But he said for sugar growers as a whole, expansion would not be good policy. Huckaby said he has tried to stress, in his speeches to sugar industry groups, that if growers continue to expand, they may be penalized retroactively under any production control legislation passed next year. Huckaby said Congress is unlikely to approve any changes in the sugar program this year despite a Reagan administration proposal to drastically slash the program. "The administration proposal is so drastic, that I don't think it will get up a head of steam," Huckaby said. He said even a more moderate proposal to reduce sugar price support is unlikely to be approved. Instead of seeking to slash the domestic sugar program, Huckaby said the Reagan administration should file a complaint with the General Agreement on Tariffs and Trade against the European Community's sugar policy. He said EC policies are the major cause of the depressed world sugar market. Reuter 

FIAT SAYS IT NOT PLANNING TO ISSUE EUROBONDS

Fiat Spa <FIAT.MI> said it had no plans to issue Eurobonds linked to shares still held by banks after the placement of the 15 pct Libyan stake in Fiat last autumn, a company spokesman said. "An eventual issue of bonds convertible into Fiat shares is not our responsibility," the spokesman told Reuters. "In case the operation should be finalized, the bonds would be issued by banks and not by Fiat, the spokesman said. The spokesman was commenting on West German press reports that Fiat is considering a Eurobond issue of up to 384 mln dlrs, convertible or with warrants attached for exercise into its shares still held by the banks. REUTER 

INVESTORS INCREASE STAKE IN FROST, SULLIVAN

One of a pair of private investors in Frost and Sullivan Inc told the Securities and Exchange Commission he increased his stake in the firm by about two pct, to 15.4 pct. He is Theodore Cross, Princeton, N.J., editor of Business and Society Review. The other investor is Mason Slaine, Cos Cob, Mass, president of Dealers' Digest Inc. He holds a 3.3 pct stake. Cross told the SEC he bought the new shares at between 7.75 and 8.0 dlrs. Reuter 

LIBERIAN ORE CARRIER IN COLLISION IN RIVER ELBE

The Liberian motor bulk carrier, Trave Ore, 106,490 dwt, loaded with ore, and the 2,852 dwt West German motor vessel Christa, collided late last night on the River Elbe near buoy 129, Lloyds Shipping Intelligence said. The Trave Ore proceeded by its own means to Hamburg. The Christa was taken in tow with a damaged bow. The Liberian vessel was concluding a trip from Seven Islands to Hamburg. Reuter 

AIM TELEPHONES <AIMT> SELLS DEBT TO SHAREHOLDER

AIM Telephones Inc said it has sold three mln dlrs of nine pct seven-year subordinated notes to principal shareholder <Quince Associates>. The company said it has also issued Quince seven-year warrants to buy 500,000 common shares at six dlrs each. Reuter 

HERSHEY OIL CORP <HSO> 4TH QTR LOSS

Shr loss 19 cts vs loss 2.37 dlrs Net loss 1,140,000 vs loss 13,608,000 Revs 1,069,000 vs 1,940,000 Year Shr loss 53 cts vs loss 2.34 dlrs Net loss 3,012,000 vs loss 13,433,000 Revs 4,945,000 vs 6,705,000 Reuter 

<VISTA MANAGEMENT INC> GETS BOND GUARANTEES

Vista Managemement Inc said it has obtained notice of the availability of insurance guarantees on 60 mln dlrs of leasing receivable bonds of its CBS Leasing subsidiary from Developers Insurance Co, allowing the bonds to be rated by leading credit rating agencies. The company said the guarantees are subject to the placement of over one mln dlrs of reinsurance and to a pending change of control of Developers Insurance. Reuter 

EG AND G INC <EGG> SETS QUARTERLY

Qtly div 14 cts vs 14 cts prior Pay May Eight Record April 17 Reuter 

<ENCOR ENERGY CORP INC> YEAR LOSS

Shr not given Net loss 406.6 mln vs profit 35.4 mln Revs 138.1 mln vs 211.9 mln Note: 1986 net includes 545.7 mln dlr asset writedown before 139.2 mln dlr recovery of deferred taxes. 48 pct-owned by Dome Petroleum Ltd <DMP>. Reuter 

BRAZILIAN LABOUR UNREST SPREADS, MANY BANKS SHUT

Brazil's labour unrest is spreading, with many banks, universities and government statistical offices on strike and more pay disputes looming. Bankworkers' leaders said that a national strike launched yesterday to press for a 100 pct immediate pay rise and monthly salary adjustments had the support of most of the 700,000 workforce. The strike today closed the stock exchanges of Sao Paulo and Rio de Janeiro. For the government the one positive development on the labour front was the gradual return to work of the nation's 40,000 seamen, who began a national strike on February 27. A union spokesman in Rio de Janeiro told Reuters about half the seamen had returned to work after accords with 22 companies and that the strike looked close to an end. Otherwise the labour scene looked bleak, with the bank strike posing the most serious problems for Brazil's crisis-laden economy. "If this goes on for more than a few days it will have a serious effect because normal financial operations will grind to a halt," said a western diplomat in Sao Paulo. Today Brazil's 50,000 university teachers in the 42 federal universities launched a national strike, with a broad political demand as well as a pay claim. David Fleischer, head of the political science department in Brasilia university, told Reuters the National Association of Higher Education Teachers wanted a full congressional inquiry into what had happened to government education funds. He said the universities were strapped for cash and that the association suspected the junior partner in the coalition government, the Liberal Front Party, PFL, of using education funds for projects which had helped their candidates in elections. The PFL holds the Education Ministry. Hardly any sectors of the economy are proving immune to the current labour unrest, caused by the return of high inflation, officially pegged at 33 pct for January-February. Other possible strikes looming include stoppages by oil industry workers and social security workers. Reuter 

OAK INDUSTRIES <OAK> SETS DEBT EXCHANGE OFFER

Oak Industries said it will commence an exhcange offer for any or all of certain of its debentures and notes. It said it is offering to exchange 660 shares of common stock for each 1,000-dlr principal amount of its 4,139,000 dlrs of outstanding 11-5/8 pct notes due September 15, 1990. It will also exchange 698 shares of common for each 1,000-dlr principal amount of 5,557,000 dlrs of outstanding 13-1/2 pct senior notes due May 15, 1990 and 612 common shares for each 1000 dlrs of its 12,788,000 dlrs in 9-5/8 pct convertible notes due September 15, 1991. The company said it is also offering 678 common shares for each 1,000 dlrs of its 753,000 dlrs of outstanding 11-7/8 pct subordinated debentures due May 15, 1998 and 595 common shares for each 1,000 dlrs principal amount of its 6,572,000 dlrs of 10-1/2 pct convertible subordinated debentures due Feb 1, 2002. Oak said it will not make any cash payments to the tendering holders. It said the common stock amounts have taken into account accrued interest on the notes and debentures. Reuter 

COLLINS FOODS <CF> TO REDEEM DEBENTURES

Collins Foods International Inc said that on April 30 it will redeem all of its outstanding 12 pct subordinated debentures due December 15, 2008. There are currently 30 mln dlrs principal amount of the debentures outstanding, the company said. Reuter 

ANDREOTTI DROPS COALITION BID

Veteran politician Giulio Andreotti abandoned his attempts to form a government, putting Italy on course for early elections, political sources said. Christian Democrat Andreotti told President Francesco Cossiga he was unable to reconstruct the five-party coalition after two weeks of negotiations, they said. Reuter 

TEAM <TMI> TO UNVEIL NEW EQUIPMENT IN MAY

Team Inc said it will introduce a line of repair products for electrical distribution and transmission equipment for the utility industry in May. The new products include a transformer repair service which will seal oil leaks in transformers. Other products include a new licensed repair method of electrical porcelain, and a newly developed concrete repair service. Team said it expects to continue to sell equipment and attempt to reduce losses to generate positive cash flow. Earlier, Team reported third quarter net income of 91,000 dlrs on sales of 11.5 mln dlrs. Reuter 

<ASTA GROUP INC> UNIT IN LOAN PURCHASE

Asta Group Inc said its 50 pct owned Liberty Service Corp affiliate has purchased about 50 mln dlrs face value of credit card installment receivables from a major financial institution it did not name for a significant discount from face value. It said the portfolio consists mostly of charged off loans. The company also said it expects to realize a profit of about 300,000 dlrs on its 25 pct interest in the Briarcliff Manor condominium project in New York, with about 140,000 dlrs of the profit being reflected in the year ending September 30. Reuter 

ENCOR PLANS 125 MLN DLR DEBENTURE OFFERING

<Encor Energy Corp Inc> said it planned an issue in Canada of 125 mln dlrs of 6.75 pct subordinated debentures, convertible any time into Encor common shares for a price of 10 dlrs a share. Encor, 48 pct-owned by Dome Petroleum Ltd <DMP>, said investment dealers McLeod Young Weir Ltd and Pemberton Houston Willoughby Bell Gouinlock Inc agreed to purchase the issue for resale to the public. It said the debentures would pay interest semi-annually and be callable after five years at par plus accrued interest. Encor earlier reported a 1986 net loss of 406.6 mln dlrs. Encor last year earned 35.4 mln dlrs. The 1986 net loss included a 545.7 mln dlr asset writedown before a 139.2 mln dlr recovery of deferred taxes. The company said 1986 results were seriously affected by lower oil and gas prices, but did not reflect its recent acquisition of <Aberford Resources Ltd>. It said that while oil prices had improved in early 1987, it would remain cautious and base capital spending on conservative price assumptions. Encor will use proceeds from the debenture offer to retire bank debt incurred in the Aberford deal, it said. Reuter 

ARDEN INTERNATIONAL <AIKI> 4TH QTR DEC 27 NET

Oper shr one ct vs two cts Oper net 30,000 vs 62,000 Revs 2,315,000 vs 2,355,000 Year Oper shr four cts vs nine cts Oper net 95,000 vs 204,000 Revs 9,214,000 vs 9,950,000 Avg shrs 2,492,000 vs 2,351,000 NOTE: Full name is Arden International Kitchens Inc More 

TWA <TWA> SELLS POSITION IN USAIR <U>

Trans World Airlines Inc sold four mln shares it held in USAir Group Inc, Wall Street sources said. The sources said the buyers are believed to be a group of institutions. Bear Stearns handled the trade. It crossed the four mln shares at 45, off 1/8. Bear Stearns would not comment on buyers or sellers. USAir and TWA had no immediate comment. USAir later said it did not buy the stock. A company spokesman would not comment further. TWA earlier this month reported holding slightly more than four mln shares, or about 15 pct of USAir. It had also proposed a takeover of USAir, which at the time was negotiating its proposed merger with Piedmont Aviation Inc. On March 16, TWA withdrew its bid, saying it did not intend to seek control of USAir Group or to acquire more of its stock at the time. TWA also said in the filing with the Securities and Exchange Commission that its chairman, Carl Icahn is the target of an SEC probe of alleged violations of securities laws. In its filings with the SEC, TWA said it paid 178.2 mln dlrs for its USAir stock. "With this out of the way, if it indeed was bought by institutions, it paves the way for better value for USAir stock later," said Janney Montgomery analyst Louis Marckesano of TWA's sale of its stock. "Technically, as long as that block was overhanging the market you didn't know what was going to happen," he said. USAir stock was trading at 44-3/8, off 3/4 on volume of 4.4 mln shares. TWA stock rose one to 28-1/4. Reuter 

COMBUSTION ENGINEERING<CSP> SEES 1ST QTR NET OFF

Combustion Engineering Inc said it expects first quarter earnings to be 20 to 25 pct below the year-ago 13.6 mln dlrs, mainly due to financing costs resulting from the January 1987 acquisition of AccuRay Corp. The company said it has filed for an offering of four mln common shares and 150 mln dlrs of subordinated debentures due 2017, with proceeds to be used to refinance the short-term bank debt incurred for the AccuRay acquisition, to finance other costs of the transaction and for general corporate purposes. Combustion said 3,500,000 shares will be sold in the U.S. and the remainder overseas. Combustion paid about 218 mln dlrs for AccuRay, a maker of computer-based measurement and control systems used in pulp and paper mills. The company said it expects to release first quarter results in the third week in April. Combustion said it expects further restructuring of core businesses -- particularly Lummus Crest -- this year through staff reductions downsizings and the consolidation of facilities. Combustion said the restructuring at Lummus Crest is expected to substantially reduce but not eliminate this year losses in the Engineering and Construction segment. But it said improvement at Lummus Crest is expected to be approximately offset by a number of factors, including a somewhat lower level of earnings in the Power Generation segment than in 1986, financing costs of the AccuRay acquisition, costs associated with integrating AccuRay technology and operations and delays in waste to energy projects. Reuter 

NEWMONT GOLD SEES ITS SALES RISING 22 PCT

Newmont Gold Corp expects gold sales in 1987 to rise about 22 pct to 577,000 ounces from 1986's 474,000 ounces, the company said in its annual report. Newmont Gold, 95 pct owned by Newmont Mining Corp, said it expects significant increases in gold sales in 1988 and 1989 as well. Reuter 

TALKING POINT/TOBACCO STOCKS

Stocks of tobacco companies rose sharply as investors grew more confident that an excise tax would not be imposed on tobacco, traders and analysts said. They also said the stocks are relatively inexpensive since fear of the tax and of pending litigation regarding warning labels for tobacco products have kept many investors away recently. Philip Morris Cos <MO> rose 2-5/8 to 87-3/4, RJR Nabisco <RJR> 1-1/4 to 57-1/2 and U.S. Tobacco <UBO> 7/8 to 27. "The near-term activity of these stocks has been dominated by external factors such as smoking restriction legislation, concern over liability suits and the possible imposition of excise taxes," Dean Witter analyst Lawrence Adelman said. "But the feeling is that many of those externals have been discounted in the price of the stocks." Adelman, who issued a positive recommendation on Philip Morris earlier this week, said there have been indications that the Reagan Administration's staunch opposition to tax hikes would short-circuit attempts to tax tobacco. "The tobaccos do have more risks than regular consumer stocks because of these external factors," Adelman said. "They are not for the weak-hearted, but they offer a lot of value for the aggressive investor." In a market where everyone is looking for affordable stocks, trader Drew Schaefer of Kidder Peabody said, it is not hard to understand why the tobaccos, which have been depressed for a while in a positive market, are attracting buyers. Adelman believes one of the better buys is Philip Morris. "It is a powerhouse of potential growth in earnings, dividends and free cash flow. And the stock is cheap now," he said. Adelman expects Morris to earn eight dlrs a share this year compared to 6.20 dlrs a share earned a year ago. In 1988, the company should report a profit 10.30 dlrs a share. Reuter 

MICRO DISPLAY <MDSI> GETS EUROPEAN ORDERS

Micro Display Systems Inc said it has written orders exceeding 1.5 mln dlrs in the European market for its full-page display computer monitor, The Genius. The company first began direct marketing The Genius to Europe in mid-January. It forecast that more than 700,000 dlrs of the orders will be shipped by the end of March, with the balance shipped within the next three months. Reuter 

TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR

TREASURY'S BAKER SAYS ECONOMIC COOPERATION PROCESS IS WORKING

TREASURY'S BAKER SAYS "THROWING MONEY" AT DEBTOR NATIONS WON'T WORK

UTAH POWER <UTP> PLANS TO REDEEM PREFERRED STOCK

Utah Power and Light Co said it filed an application with the Idaho Public Utilities Commission to refinance preferred stock that was issued when interest rates were higher. Subject to approval, the utility plans to sell nearly 95 mln dlrs of first mortgage bonds in the second quarter to redeem all of its outstanding Series F, H and I preferred. It will buy back the Series F at 26.61 dlrs per share, Series H at 27.03 dlrs and Series I at 27.32 dlrs, plus accrued dividends. Similar applications will be filed with the Utah and Wyoming public utility commissions, Utah Power said. Reuter 

GATEWAY SPORTING BUYS INNOVATIVE DENTAL

Gateway Sporting Goods Co said it acquired all of the shares of stock of Innovative Dental Services Inc for an undisclosed amount of cash. Gateway said the acquired company has contracts with 102 dentists in 144 locations. Reuter 

TREASURY'S BAKER SEES CUT IN TRADE DEFICIT

Treasury Secretary James Baker said the administration is confident the effect of exchange rate changes will bring about a cut in the trade deficit this year. In testimony before the Senate Committee on Governmental Affairs, Baker conceded that the effect thus far has "not yet proved as quick or as strong as had been expected from past experience." He told the committee, however, that the "initial signs are encouraging." Reuter 

CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK

UK TO RETAIN POWERS AGAINST U.S UNITARY TAXATION

Britain has decided to resist U.S. pressure and retain powers to withdraw tax credits from U.S. parent companies based in states which impose unitary taxes on the worldwide profits of foreign-owned firms, Treasury Financial Secretary Norman Lamont told Parliament. But he added that the eventual use of those powers would not be backdated if activated before the end of 1988. The U.K. Government has consistently opposed the use of unitary taxation of international business on grounds they are contrary to internationally accepted principles, laid down by the United Nations and the OECD, Treasury sources said. In a written parliamentary answer, Lamont said "in the meantime, progress towards a final resolution of the unitary tax issues will be kept under careful review" by Britain. "Should it be necessary to take action ... Before December 31, 1988, it will not apply to dividends paid before the date of the announcement of such action. If it is necessary to take action thereafter, it will not apply to dividends on or before December 31, 1988," Lamont said. The Reagan Administratian published draft legislation late in 1985 to limit states use of unitary taxation to the profits made inside the U.S., Known as the "water's edge" method. In response to that draft legislation, Britain agreed to defer initiating action under its Finance Act 1985 - but only on the understanding that legislation to resolve the unitary tax issue would be made law and take effect from end-December 1986. Then the U.S. Administration said in September 1986 that it had decided not to pursue Federal legislation, in view of the passing of legislation in California. Britain, however, considers the California legislation unsatisfactory, not least because U.K. Business will have to pay a fee for the right of not being assessed by the unitary tax method, government sources said. Reuter