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NATIONAL BANC OF COMMERCE CO <NBCC> SETS PAYOUT

Qtly div 14 cts vs 14 cts prior Pay April Eight Record March 26 Reuter 

HARSCO CORP <HSC> SETS REGULAR PAYOUT

Qtrly div 25 cts vs 25 cts Pay May 15 Record April 15 Reuter 

MADAGASCAR COCOA PRODUCTION ESTIMATED HIGHER

Madagascar's cocoa production is estimated 13 pct higher this year at 2,720 tonnes, up from 2,400 in 1986, Agriculture Ministry officials said. This improvement reflects the government's efforts over the last seven years to extend existing cocoa plantations and plant new higher yielding varieties, particularly at the northern tip of the island, they said. Last year, Madagascar exported 2,189 tonnes of high quality cocoa, up from 1,624 in 1985, the Trade Ministry said. This year's exports are estimated at 2,400 tonnes. Reuter 

COMPUTER ASSOCIATES <CA> SETS TWO FOR ONE SPLIT

Computer Associates International Inc said its board has declared a two-for-one stock split, payable May Seven, record April Seven. Reuter 

SWISS NET CAPITAL EXPORTS RISE IN 1986

Increased activity by Switzerland's banks pushed net capital exports to a provisional 11.7 billion francs last year from 10.0 billion in 1985, the National Bank said in a pre-publication copy of its annual report. It also said the current account surplus of the Swiss balance of payments reached a provisional 13.5 billion francs last year, from 12.8 billion in 1985. The National Bank's currency reserves rose by 1.8 billion francs, against a 2.8 billion rise in 1985. However, taking into accounts effects of the shift in exchange rates, reserves actually fell in value by 1.9 billion. The banks' net capital exports climbed to 5.4 billion francs, from 5.1 billion in 1985, while capital exports by domestic non-banks fell to 5.0 billion from 9.1 billion. The National Bank gave the following figures (1985 in brackets) Current Account +13.5 billion (+12.8 in 1985), made up of: Goods -7.1 (-8.7) Services +10.1 (+9.8) Factor Income +12.5 (+13.7) Transfers -2.0 (-2.0) Capital Account -11.7 billion (-10.0 in 1985) made up of Direct Investment N/A (-6.3) Portfolio Investment N/A (-2.8) Capital Traffic of Banks -10.4 (-14.2) Other Capital Traffic Included N/A (+5.6) Traffic not Included and Statistical Error N/A (+7.7) Change in Currency Reserves of the National Bank +1.8 (+2.8) Interest Income on Foreign Currency +2.4 (+3.4) Foreign Currency Transactions -0.6 (-0.6) REUTER 

ST LAWRENCE SEAWAY OPENING STILL MARCH 31

The St Lawrence Seaway between Lake Ontario and Montreal is still scheduled to open for the shipping season on March 31, a Seaway official said. The Great Lakes could have been open for traffic earlier this month due to the mild Winter, but scheduled repairs to the Welland Canal joining Lake Erie with Lake Ontario will keep that section closed until the April 1 opening, she said. One lock system in the four-lock Soo Canal joining Lake Superior with Huron was opened on the morning of March 22, but only three commercial vessels have been locked through so far, according to an U.S. Army Corps of Engineers official. The Soo Canal is currently only open for daylight vessel movement, with 24 hour movement allowed beginning March 29, she added. Reuter 

DUTCH GRAIN LEVY TEST CASE TO START IN APRIL

A large Dutch animal feed compounder will begin formal legal proceedings early next month as a test case on the way the EC grain co-responsibility levy is applied, a spokesman for Dutch grain and feed trade association, Het Comite, told Reuters. Het Comite has been co-ordinating national actions against alleged distortions caused by currency factors in the levy and, since December, has lodged more than 80 individual cases with the Business Appeal Court in The Hague. The basic complaint is that the levy does not take account of currency cross-rates of exchange and therefore compounders in countries with strong currencies may have to pay more in their own currency than is paid to them by producers in another country. Het Comite has obtained a temporary agreement that companies can pay the amount they receive toward the levy rather than paying a full guilder amount to the Dutch grain commodity board. The spokesman said Het Comite will provide financial and legal backing to the test case in the Business Administration Court in the Hague. Oral proceedings are to begin on April 10. The spokesman said Het Comite finally selected the company for the test case from among the 80 lodged "because the bill (the firm) received from the commodity board for payment of the levy contained significant currency distortions and involved grain from a wide variety of origins." The name of the company is not being made public. The Administration Court is not expected to make a final ruling on the case in the near future. The Het Comite spokesman said it was very likely it would refer questions to the Appeal Court in Luxembourg, and "as a result it could easily be another nine to 12 months before the matter is finally resolved." Meanwhile, the actions by Dutch animal feed compounders are putting pressure on the commodity board to urge the Dutch government to follow through on earlier statements and seek a complete review in Brussels of the way in which the levy is collected, the spokesman said. Het Comite, as a member of FEFAC, the association of European animal feed manufacturers, is also a party to actions protesting the whole levy in the Luxembourg appeal court. Reuter 

IDB APPROVES TRADE, PROJECT LOANS TO MEMBERS

The Executive Directors of the Islamic Development Bank (IDB) approved a total of 115 mln dlrs of trade and project financing loans to its member countries in the first two days of its meetings here, a bank statement said. Two Turkish iron and steel companies were lent a total of 14.5 mln dlrs for modernisation projects to be paid over 10 years with a two-year grace period. Libya is to receive 8.9 mln dlrs for a plant to produce concrete blocks, North Yemen 5.5 mln dlrs for roads and Maldives 1.8 mln dlrs for school construction. The board approved a 4.2 mln dlrs loan to Benin for the construction of the Cotonou port, to be repaid in 25 years with a five year grace period, the statement said. The directors also approved 15 mln dlrs of loans each for Turkey, Morocco and Jordan, 16 mln dlrs for Algeria, 10 mln dlrs for South Yemen, six mln dlrs for Tunisia and 3.1 mln dlrs for Malaysia to finance the import of commodities including crude oil, petroleum products and basic computer components. The directors are expected to end their meetings later today and the IBD Governors will start a two-day annual meeting in Istanbul on Saturday. REUTER 

Z-SEVEN FUND SEES HIGHER 1987 NET

<Z-Seven Fund Inc> said it expects to earn six dlrs a share in 1987, up from 4.20 dlrs a share in 1986. The company said the 1986 net earnings were up 30 pct from 3.22 dlrs in 1985. Net asset value in 1986 rose 35 pct to 16.09 dlrs a share from 11.89 a year earlier, adjusted for a three-for-two stock split. Reuter 

FRENCH STOCK BILL TO BE PRESENTED BEFORE JUNE

The French government will present to parliament a major bill within two months to overhaul the Paris stock market, economics and finance minister Edouard Balladur said. Balladur told an Economist conference that on the product side, a series of new contracts, including share options and forward contracts in European Currency Units (ECUs), would be introduced shortly for trading on the Paris bourse. The scope of the new bill, however, was to transform the organisation of equity trading, allowing participants both to perform a banking role and to trade in equities, he said. Reuter 

JAGUAR OFFERS NEW LUXURY SEDAN

Jaguar Cars Inc, a subsidiary of Jaguar PLC, said it introduced its new 1988 XJ6 luxury sedan to replace its Series III XJ6 sedan. The 40,500-dlr car will be available in showrooms starting May four, the company said. Many parts of the XJ6 and the 44,500 dlr Vanden Plas have been changed, adding high-tech features. The car has seven micro-processors that control its major electrical functions. The in-car computer offers a wide array of trip information. The Vanden Plas offers more features than the basic XJ6. Jaguar said it has a "substantial waiting list" for the cars in Europe, where it was introduced last October. Reuter 

SPANISH REFINER PLANS GASOLINE ADDITIVE PLANT

Spain's state refiner Empresa Nacional de Petroleo S.A. (EMP) plans to build its second unit for production of methyl tertiary butyl ether (MTBE), a gasoline additive replacing lead, company sources said. The Coruna-based plant, with an annual capacity of 27,000 tonnes, and a 55,000-tonnes-per-year facility that EMP will start up in Tarragona next year, will make the state refiner Spain's biggest producer of MTBE. Petroleos del Norte S.A. (Petronor) runs a 45,000 tonne a year plant in Bilbao and Cia Espanola de Petroleos S.A. (Cepsa) plans to put a similar unit onstream next year in Algeciras. Reuter 

WALL STREET STOCKS/U.S. OIL COMPANIES

British Petroleum Co PLC's announcement that its U.S. subsidiary intends to tender for the 45 pct of Standard Oil Co <SRD> it does not already own, catapulted U.S. oil stocks sharply higher this morning, traders and analysts said. "It raises the specter of additional consolidation in the industry and that is what is boosting the other oils," analyst Rosario Ilacqua of L.F. Rothschild said. Sanford Margoshes of Shearson Lehman Brothers said "this deal shows that British Petroleum, a conservative investor that knows the oil business, is clearly confident in the U.S. oil industry, and that shines well on the U.S. companies." More 

ROY F. WESTON INC <WSTNA> 4TH QTR NET

Shr 15 cts vs 11 cts Net 900,334 vs 482,705 Revs 28.7 mln vs 18.8 mln Avg shrs 6,195,527 vs 4,551,105 Shr 51 cts vs 31 cts Net 2,713,912 vs 1,402,696 Revs 98.7 mln vs 67.9 mln Avg shrs 5,369,833 vs 4,551,105 NOTE: Share adjusted for three-for-two stock split effecitive March 2, 1987. Weston said earnings for the firstg quarter will be about flat due to the recent substantial addition of management and technical staff and an expansion in the Southeastern and Northwestern U.S. The company said full-year earnings and revenues are expected to be higher. The company today reported 1986 earnings of 2,713,912 dlrs, up from 1,402,696 dlrs in 1985, and revenues of 98.7 mln dlrs, up from 67.9 mln dlrs. Weston earned 492,000 dlrs in last year's first quarter. Reuter 

MOBIL <MOB> TO UPGRADE REFINERY UNIT

Mobil Corp said it will spend over 30 mln dlrs to upgrade a gasoline-producing unit at its Beaumont, Texas, refinery. It said the unit is a catalytic reformer, which converts low-octane components of gasoline into high-octane components for use in Super Unleaded gasoline. The company said the modernization will allow the unit to regenerate catalysts on a continuous basis without shutdown. Currently, it must be shut twice a year. The unit produces 46,000 barrels of gasoline components a year. Construction will start late this year, with completion set for mid-1989. Reuter 

WARNER-LAMBERT <WLA> SUES MASON DISTRIBUTORS

Warner-Lambert Co said it has filed suit in U.S. District Court in New Jersey against <Mason Distributors Inc>, alleging unfair competition. It said the suit results from Mason's distribution of children's allergy medicine in packages allegedly resembling those of Warner-Lambert's Benadryl capsules and elixir. Reuter 

NOVA <NOVX> TO GET BRADYKININ ANTAGONIST PATENT

Nova Pharmaceutical Corp said the U.S. Patent Office has allowed its patent for bradykinin antagonist drugs. Nova said patents have also been filed in other countries worldwide. It said it has the exclusive worldwide rights to these patents for the first bradykinin blocking drugs being developed as topical pain relievers and in nasal spry form for treating common cold symptoms. Nova said Bradykinin is the most powerful paing-producing substance in the body and is considered, based on scientific evidence, to be the initial stimulus of pain. Reuter 

BLOCKBUSTER <BBEC> TO ACQUIRE LICENSEE

Blockbuster Entertainment Corp said it agreed to buy <Southern Video>, a Blockbuster licensee in San Antonio. Blockbuster said it will issue 80,460 shares of its common stock for all the net assets of Southern Video. The company said after the acquisition is complete, it intends to open additional Blockbuster Video Superstores in the San Antonio market. Reuter 

BRAZIL SOY HARVEST 13 PCT COMPLETE - NEWSLETTER

Brazil's soybean harvest was 13 pct complete by March 20, the Safras e Mercado newsletter said. This compares with an historic average for this time of year of 20 pct. The newsletter gave the following figures for the progress of the harvest in the main producer states: Parana: 40 pct Mato Grosso do Sul: 15 pct Mato Grosso: five pct Rio Grande do Sul: two pct Reuter 

CONTEL <CTC> TO BUY WALKER COUNTY TELEPHONE

Contel Corp said it has agreed in principle to acquire <Walker County Telephone Co> of LaFayette, Ga., for an undisclosed amount of common stock. Walker has 7,600 customers in northeast Georgia. The company said the agreement is subject to approval by regulatory agencies, both boards and Walker shareholders. Reuter 

COMPUDYNE <CDC> SEES COSTS FROM CLEAN-UP STUDY

CompuDyne Corp said its Robintech Inc unit expects to spend 300,000 to 350,000 dlrs on a study of a former plant site requested by the U.S. Environmental Protection Agency, EPA. The company said another potentially responsible party was also asked to share in the study. The plant, in Vestal, N.Y., has been designated as a Superfund site by the EPA. While its responsibility has not been established, it said the study will determine what remedial action may be needed at the site. Reuter 

REUTERS TO CARRY SEAQ TWO-WAY U.K. SHARE QUOTES

Reuters Holdings Plc <RTRS.L> said it had reached agreement with the London-based International Stock Exchange on the distribution of two-way British domestic share quotations from the Stock Exchange Automated Quotation System (SEAQ) via the Reuter worldwide information network. The company said in a statement the agreement covered SEAQ Level-2, which provides buy and sell price quotations from 31 individual market makers in domestic U.K. Equities. Reuters said it will begin carrying the quotes for all 101 Alpha stocks, leading U.K. Shares, within the next few weeks. The SEAQ investor service, which displays indications of market prices for U.K. Shares without identifying market makers, has been available on the Reuter network since the "Big Bang" deregulation of the London stock market last October. The SEAQ level-2 service will be available on one-month trial to subscribers to the Reuter International Equities Service and to the Reuter U.K. Investment Service, prior to the imposition of Stock Exchange fees, the company said. REUTER 

MULFORD SAYS G-6 WANTS STABILITY

Treasury Assistant Secretary David Mulford said the Paris agreement among leading industrial nations is intended to produce "reasonable stability" in exchange markets over the next few months. He told a Senate Banking subcommittee the Group of Five nations and Canada agreed in Paris to "see if there can't be a period of reasonable stability instead of volatility" to give time for the committments in Paris to take place. Asked by Sen Phil Gramm (R-Tex) whether U.S. intervention was not in fact overvaluing the dollar, Mulford replied that the administration judged that after economic adjustments, current exchange rates reflect underlying economic fundamentals. In particular, the stability sought by the nations would allow West Germany and Japan to stimulate their economies domestically and the U.S. to cut its budget deficit, Mulford said in his testimony. He stressed that a further sharp fall in the dollar would hurt the ability of Germany and Japan to boost growth. Mulford noted that half of West Germany's economy was affected by international developments. He also said increased Japanese domestic growth would result in more U.S. exports to Japan and would not necessarily lead to greater Japanese capital flows to the U.S., as Gramm asserted, if Japan reformed its domestic capital market. Commenting on the Paris agreement, Mulford said, "I think exchange rates ought to be stabilized so (Germany's and Japan's) efforts can be carried out. Mulford rejected Gramm's argument that faster domestic growth in Germany and Japan would result in an even lower dollar. Mulford said the administration wanted to achieve a pattern of higher growth overseas as a way of improving the U.S. trade deficit. Otherwise, he said, the trade deficit would be resolved either through a much lower dollar or a U.S. recession, both alternatives he termed unacceptable and undesirable. Reuter 

SYMBOL TECHNOLOGIES <SMBL> GETS CONTRACT

Symbol Technologies Inc said it has received an order worth over five mln dlrs to install its LS-7000 hand-held laser scanners and related equipment in all 271 U.S. Toys "R" Us Inc <TOY> stores by the end of calendar 1987. Reuter 

THERMO PROCESS <TPSI> COMPLETES ACQUSITION

Thermo Process Systems Inc said it completed its purchase of Thermo Process Services Inc, a subsidiary of Thermo Electron Corp <TMO>. Thermo Process Systems said it issued 2,590,000 shares of its common stock to Thermo Electron in connection with the sale. Reuter 

SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.

Siemens AG's <SIEG.F> fully-owned subsidiary Siemens Informations Systems Inc. Has raised its stake in Telecom Plus Communications Inc. By 65 pct to 100 pct, a Siemens spokesman said. He added that Telecom Plus Communications was the largest independent supplier of telephone exchange systems in the U.S. And had achieved a turnover of 234 mln dlrs in 1986. The stake had been acquired from Telecom Plus International Inc. The spokesman declined to comment on U.S. Newspaper reports that the purchase price of the remaining stake totalled 173 mln dlrs. Reuter 

FRUEHAUF POSTS 20.3 MLN DLR 1986 LOSS

Fruehauf Corp, which went private in December through a leveraged buyout, said the predecessor company had a 1986 loss of 60.9 mln dlrs compared to earnings of 70.5 mln dlrs in 1985. Sales of the predecessor company were 2.68 billion dlrs compared to 2.56 billion dlrs in 1985, including the sales by the operations which are divestiture candidates. Fruehauf said in connection with the buyout acquisition, the predecessor company incurred about 97 mln dlrs in expenses charged against 1986 operations. In addition to the direct expenses, Fruehauf said operating results were adversely affected by an unquantifiable amount due to the disruption related to a proxy contest and attempted hostile takeover which started in early 1986. Fruehauf said its board rescheduled the annual meeting to June 18 from May 7 to allow for completion and distribution of the 1986 results to shareholders. Reuter 

MICHIGAN GENERAL <MGL> TO SELL KRESTMARK UNIT

Michigan General Corp said it agreed to sell substantially all of the assets and certain liabilities of its Krestmark subsidiaries to LCB Holdings Inc for 6.5 mln dlrs cash. Sale of Texas-based Krestmark, a maker of doors, door frames and other products, will allow Michigan General to concentrate on retailing through its Diamond Lumber and Savannah Wholesale units. Proceeds of the sale will be used to reduce debt. The deal is subject to execution of a definitive agreement. Krestmark had revenues of about 40 mln dlrs and operating losses of three mln dlrs in 1986, the company said. It has been accounted for as a discontinued operation since last September. Dallas-based LCB is a privately-held maker of structural steel joists and rack and storage handling systems. Michigan General also said its Diamond Lumber homebuilding products retail unit closed nine unprofitable stores in the first quarter and reduced its headquarters staff by 10 pct. The nine closed stores, which had pretax operating losses of 1.7 mln dlrs in 1986, are being sold to provide cash for operations. About 4.5 mln dlrs of inventory from the stores is being transferred to other locations, the company said. Reuter 

RABBIT SOFTWARE <RABT> TO MERGE WITH CTI DATA

Rabbit Software Corp said it agreed in principle to merge with <CTI Data Inc>, a privately owned communications company. According to terms, CTI holders and employees will receive 200,000 shares of Rabbit stock and royalties on sales of CTI Products. CTI will become a wholly owned subsidiary of Rabbit. The deal is subject to completion of a definitive merger agreement, receipt of third party approvals and other conditions, the company said. Reuter 

COMSTOCK GROUP INC <CSTK> 4TH QTR LOSS

Shr loss 60 cts vs loss 43 cts Net loss 3,012,000 vs loss 2,114,000 Revs 102.8 mln vs 134.9 mln Year Shr loss 1.48 dlr vs loss four cts Net loss 7,338,000 vs loss 180,000 Revs 354.9 mln vs 469.2 mln NOTE: 1986 4th qtr and year net includes a loss of 623,000 dlrs and a gain 1,910,000 dlrs or 39 cts per share for an extraordinary item. Reuter 

TIME <TL> SINKING FUND DEBENTURES YIELD 8.84 PCT

Time Inc is raising 250 mln dlrs via an offering of sinking fund debentures due 2017 yielding 8.84 pct, said lead manager Salomon Brothers Inc. The debentures have an 8-3/4 pct coupon and were priced at 99.055 to yield 115 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. First Boston co-managed the deal. The issue is non-refundable for 10 years. A sinking fund starting in 1998 to retire annually five pct of the debentures can be upped by 200 pct at the company's option, giving them an estimated minimum life of 13.85 years and maximum of 20.5 years. The debt is rated Aa-3 by Moody's and A-plus by S/P. Reuter 

MITSUBISHI UNIT TO SUPPLY CELLULAR TELEPHONE SYSTEMS

ASTRONET Corp, which is jointly owned by <Mitsubishi Corp> and <Stromberg-Carlson Corp> said it entered into three separate agreements to supply cellular telephone systems in Roanoke, Va.; Montgomery, Ala.; and San Angelo, Texas. Reuter 

U.S. SENATE HITS EC OILS TAX, VOWS RETALIATION

The Senate voted to condemn the proposed European common market tax on vegetable and marine fats and oils and said it would result in retaliation. The non-binding Senate resolution, a sense of Senate sentiment, was approved on a 99 to 0 vote. "The administration should communicate to the European Community the message that the United States will view the establishment of such a tax as inconsistent with the European Community's obligations under the General Agreement on Tariffs and Trade that will result in the adoption of strong and immediate countermeasures," the resolution stated. The resolution said the European Community Commission has proposed establishing a consumption tax on vegetable and fish oils and fats in conjunction with the setting of farm prices for the 1987/1988 EC marketing year. The Senate said the tax would amount to almost 90 pct of the current price of soyoil and "have a restrictive effect" on U.S. exports of soybeans and vegetable oils to the EC. It would be "blatantly inconsistent" with obligations of the EC under the General Agreement on Tariffs and Trade, GATT, the resolution said, and "constitute another egregious attempt" to impose EC agricultural costs on trading partners. Reuter 

HEALTHMATE INC SAYS AUDITORS INTEND TO QUALIFY ITS FINANCIAL STATEMENTS

SWEDISH BANK, U.S. FIRM PLAN U.K. STOCK VENTURE

Sweden's Skandinaviska Enskilda Banken said it will set up a joint venture in London with U.S. brokerage firm Equitable Securities Corp of Nashville, Tenn., for the sale of U.S. equities in Europe. S-E Bank's managing director Jacob Palmstierna told a press briefing that the joint venture, called Equitable Enskilda Securities Ltd, will be established next month. S-E Bank bought a 4.9 pct stake in Equitable Securities about two weeks ago. Equitable's role in the joint venture will include provision of research on firms in the south-east United States. Reuter 

HARSCO CORP <HSC> SETS QUARTERLY

Qtly div 25 cts vs 25 cts prior Pay May 15 Record April 15 Reuter 

MILASTAR CORP <MILA> 3RD QTR JAN 31 LOSS

Shr loss two cts vs loss four cts Net loss 44,000 vs loss 85,000 Sales 370,000 vs 299,000 Nine mths Shr loss seven cts vs loss three cts Net loss 134,000 vs loss 56,000 Sales 1,211,000 vs 1,069,000 NOTE: Prior nine mths net includes 10,000 dlr loss on sale of marketable securities. Prior quarter net includes 1,000 dlr tax credit. Current year net includes provisions for loss on investment in preferred stock of 4,000 dlrs in quarter and 15,000 dlrs in nine mths. Reuter 

BDM <BDM> GETSW ARMY CONTRACT

BDM International Inc said it has received a U.S. Army contract with a base year value of 1,400,000 dlrs to support the plans and operations staff of the U.S. Army Joint Readiness Training Center, based at Little Rock Air Force Base. The company said with three option years, total value would be about 7,200,000 dlrs. Reuter 

BANK OF BOSTON EXPECTS 1ST QTR EARNINGS FROM 90 CTS TO 1.00 DLRS/SHR VS 79 CTS

BANK OF BOSTON <BKB> SEES IMPROVED 1ST QUARTER

Bank of Boston Corp expects first quarter earnings will range between 90 cts and one dlr a share, up from 79 cts a share last year, Chairman William Brown said. He told shareholders the company has a 190 mln dlr exposure in loans to Brazil if that country defaults on its debt payments. If a default does occur, it would first quarter earnings by about five cts a share, which would bring the bank's in the lower level of the estimated range, he added. Brown noted the 1986 first quarter net included a 17 cts gain from loan restructurings which will not appear this year. Brown said the bank's other nonperforming assets, not including its Brazilian exposure, could rise to over 700 mln dlrs at the end of this quarter compared with 669 mln dlrs a year earlier and 614 mln dlrs at the end of 1986. He said the increase includes all of its Equadorian loans which he expects will be ultimately repaid after the company recovers from an earthquake earlier this year. Brown said the increase also includes some Mexican and Venezuelan loans as those nations are also facing credit problems. Brown said the Bank of Boston remains "cautiously optimitic about the full year even if our Brazilian exposure were to be on nonaccural all year." In 1986, the bank earned 3.69 dlrs a share, or 232.8 mln dlrs on net interest revenues of 1.08 billion dlrs. President Ira Stepanian told the shareholders's meeting the bank's total loans to Argentina, Brazil and Mexico totaled 875 mln dlrs at the end of 1986, 37 pct of its primary capital. Brazil loans total 300 mln dlrs, of which about two-thirds are affected by its suspension of interest payments on its medium and long term foreign debt. Reuter 

LIBYA REPORTEDLY BOUGHT WHITE SUGAR

Libya is reported to have recently bought two cargoes of white sugar from operators at around 229/230 dlrs a tonne cost and freight, traders said. The shipment period required was not specified. Reuter 

USAIR GETS APPROVAL TO BUY 9,309,394 PIEDMONT SHARES IN TENDER

FED EXPECTED TO ADD RESERVES

The Federal Reserve is expected to enter the U.S. government securities market to add reserves during its usual intervention period today, economists said. With federal funds trading at a steady 6-3/16 pct, most economists expect an indirect injection of temporary reserves via a medium-sized round of customer repurchase agreements. However, some economists said the Fed may arrange more aggressive system repurchase agreements. Economists would also not rule out an outright bill pass early this afternoon. Such action had been widely anticipated yesterday but failed to materialize. Reuter 

WRIGHT SAYS HOUSE BUDGET COMMITTEE ON TARGET

House Speaker Jim Wright, D-Texas, said House Budget Committee Democrats were on target to reach budget deficit reduction goals with a plan for 18 billion dlrs in new revenues and 18 billion dlrs in additional budget cuts. "We're right on target," Wright told reporters. "The cuts are real cuts. The revenues would be real revenues." Wright said it would be up to Congress to come up with the new revenues. President Reagan says he will veto any legislation which raises taxes. Wright said the budget plan may come up in the House next week. Republicans are expected to offer an alternative budget. Reuter 

GE <GE> CREDIT SUES PHOENIX FINANCIAL <PHFC>

Phoenix Financial Corp said it was sued by General Electric Credit Corp, a unit of General Electric Co, for breach of warranties and representations. The warranties are connected with leases the company said it sold to GE Credit in June 1985. GE is asking the company to buy back leases totaling 829,000 dlrs. The company said there were no breach of warranties, but it added it is in the process of reviewing the complaint and preparing an answer. Reuter 

DOLLAR/YEN INTERVENTION RESPONDS TO PRESSURE

The Bank of France intervened to buy small amounts of dollars and sell yen in Paris today to stabilise the exchange rates agreed at last month's meeting of Finance Ministers of the Group of Five and Canada, foreign exchange dealers said. But they said recent central bank intervention in the foreign exchange markets appeared to be a limited reaction to temporary pressures rather than a major defence operation. A Bank of France spokesman declined all comment but sources close to the central bank said it had also intervened yesterday. Dealers said the earlier intervention was in concert with the Bundesbank and Bank of Japan. The sources said the French central bank could have been in the market again today in two-way operations, not necessarily on its own account, but to counter short-term pressures arising from the end of the Japanese financial year on March 31. One major French bank said it bought between five and 15 mln dlrs for the central bank and sold yen at 149.28 to the dollar. Another bank said it had been asked by the Bank of France to say it was in the market, a departure from the central bank's usual insistence on confidentiality. But other banks said they had seen no sign of intervention, which they said appeared to be on a very limited scale. "Even if 10 banks were buying five to 15 mln dlrs, you would still be talking of a small overall amount," said one dealer. Recent intervention by the Bank of Japan appeared mainly to have been required to meet year-end window dressing demand for yen. "This is a specific short term phenomenon rather than a wider trend," the dealer said. Operators have been extremely cautious about testing the dollar's trading ranges against the West German mark and Japanese yen. These ranges were set in February's stabilisation agreement reached here by U.S. Treasury Secretary James Baker and the Finance Ministers of Japan, Germany, France, Britain and Canada. But speculative pressures started to build again this week after Baker was quoted on British television at the weekend as repeating earlier statements that Washington had no target for the dollar. Baker yesterday moved to defuse speculation he was talking the dollar down, telling a Cable News Network interviewer and a Senate committee he stood by the Paris agreement. Foreign exchange markets had been misreading his comments, he said. REUTER 

WALL STREET STOCKS/U.S. OIL COMPANIES

British Petroleum Co PLC's announcement that its U.S. subsidiary intends to tender for the 45 pct of Standard Oil Co <SRD> it does not already own, catapulted U.S. oil stocks sharply higher this morning, traders and analysts said. "It raises the specter of additional consolidation in the industry and that is what is boosting the other oils," analyst Rosario Ilacqua of L.F. Rothschild said. Sanford Margoshes of Shearson Lehman Brothers said "this deal shows that British Petroleum, a conservative investor that knows the oil business, is clearly confident in the U.S. oil industry, and that shines well on the U.S. companies." Philips Petroleum <P> gained 3/4 to 15-7/8, Occidental Petroleum <OXY> one to 34-5/8, USX Corp <X>, with its Marathon Oil Co unit, rose 1/2 to 28-3/8. Exxon <XON> climbed one to 88-3/8, Mobil <MOB> one to 50-1/4, Atlantic Richfield <ARC> 3-1/8 to 80-1/2, Amoco <AN> 1-7/8 to 84-1/8, and Amerada Hess one to 33-5/8. BP gained 2-3/8 to 59-3/4. Both analysts said the rise in Standard's price this morning to above the proposed tender price of 70 dlrs a share, is an indication that investors expect the bid to be sweetened. Standard gained 6-3/4 to 71-5/8. The analysts cited Royal Dutch/Shell Group's <RD> <SC> bid for Shell Oil Co, which was sweetened before its successful conclusion. Margoshes said the BP action "is an articulation of the underlying value of oil companies in the marketplace." But he expressed skepticism that this will necessarily lead to heightened merger or buyout activity in the oil group. Reuter 

MULFORD SAYS GERMANY, JAPAN HAVE NOT YET LIVED UP TO INTERNATIONAL COMMITMENTS

ORIENTAL FEDERAL INITIAL OFFERING UNDER WAY

Oriental Federal Savings Bank of Humacao, Puerto Rico, said an initial public offering of 656,819 common shares is under way at 11.50 dlrs per share. The company issued a total of 1,075,000 shares in converting from mutual form, with other shares sold in a subscription offering. Lead underwriter is <Drexel Burnham Lambert Inc>. Reuter 

FARMERS COMMODITIES TO CLEAR FUTURES FOR CO-OPS

Farmers Commodities of Des Moines, Iowa, has taken steps to become a clearing member of the Chicago Board of Trade for farm cooperatives that currently trade through Illnois Cooperative Futures Co. Hal Richards, president of Farmers Commodities, said the company already has bought a membership at the futures exchange and has applied for clearing status. He said the company is attempting to become the clearing company for the members of Illinois Coop after they voted to dissolve the company Wednesday. Illinois Coop will cease operating April 24. Richards declined to say how many of the Illinois Coop members were considering joining Farmers, but he said the number was "significant." He said he was recruiting the staff of Illinois Coop, including Al Evans, back office manager. Richards said Farmers Commodities was the largest member of Illinois Coop, and its 700 members felt that the coop should retain a clearing membership at the board. "It allows us to get better quality execution," he said. "Anyone who wants to join our clearing corporation in the cooperative system, we'll invite them to join us. "I think we'll attract others to us because it's our intent to pass the profit back on to the individual members," he said. Reuter 

FRANK B. HALL <FBH> DEBT MAY BE CUT BY MOODY'S

Moody's Investors Service Inc said it may downgrade about 65 mln dlrs of Frank B. Hall and Co Inc's B-1 subordinated notes. Moody's said its focus will be on Hall's brokerage business and contingent liabilities associated with the unit Union Indemnity Insurance Co. The agency cited a 140 mln dlr lawsuit by the New York State Insurance Department against Hall in connection with the insolvency of the Union Indemnity subsidiary, which was liquidated by New York Insurance in 1985. Reuter 

NORCEN SEES IMPROVEMENT IN 1987 EARNINGS

<Norcen Energy Resources Ltd>, 41 pct owned by <Hees International Corp>, said earnings and cash flow will improve in 1987, even if oil and gas prices remain at 1986 levels. The improvement will result from production increases, lower taxes and royalties, reduced financing costs and from operating efficiencies and downsizing put into place during 1986, the company said in the annual report. Norcen previously reported 1986 earnings, excluding a 20.1 mln dlr writeoff, declined by 58 pct to 50.0 mln dlrs from 119.7 mln dlrs in in 1985. Norcen's 1986 cash flow fell 10 pct to 204.9 mln dlrs from 228.9 mln dlrs in the prior year. It said the sharp decline in oil prices during 1986 was the most significant factor for Norcen's reduced performance. "While financial results are far from the previous year's record levels, it is clear that Norcen has withstood declining prices and remains financially and operationally strong," Norcen said. It did not give a specific 1987 profit forecast. The company said it is well positioned to capitalize on profitable opportunities in its core business areas, and will continue to invest to increase revenue and asset values. Reuter 

COCOA COUNCIL HEAD TO PRESENT BUFFER COMPROMISE

International Cocoa Organization, ICCO, council chairman Denis Bra Kanon will present a compromise proposal on buffer stock rules to producer and consumer delegates either later today or tomorrow morning, delegates said. Bra Kanon held private bilateral consultations with major producers and consumers this morning to resolve outstanding differences, mostly on the issues of how much non-member cocoa the buffer stock can purchase and price differentials for different varieties. Delegates were fairly confident the differences could be worked out in time to reach agreement tomorrow. Some consuming member nations, including Britain and Belgium, favour the buffer stock buying more than 10 pct non-member cocoa, delegates have said. The consumers argue that buying cheaper, lower quality non-member cocoas, particularly Malaysian, will most effectively support prices because that low quality cocoa is currently pressuring the market. Producers, meanwhile, say non-member cocoa should make up at most a very small percentage of the buffer. They say Malaysia should not be able to benefit from the ICCO unless it is a member, and if the buffer stock bought Malaysian cocoa Malaysia would have no incentive to join, delegates said. As to differentials, Ghana apparently wanted a higher differential for its cocoa than is outlined in the most recent proposal, so it would have a better chance of having its cocoa bought for the buffer stock, producer delegates said. Some consumers wanted differentials to be adjusted in a way that would not promote buffer stock purchases of the more expensive cocoas, such as Ghanaian and Brazilian, they said. Other technical points need to be sorted out, including limits on how much cocoa the buffer stock manager can buy in nearby, intermediate and forward positions and the consequent effect on prices in the various deliveries, delegates said. Reuter 

SIEMENS REBUTTS U.S. CRITICISM ON CGCT OFFER

Siemens AG <SIEG.F> rebutted U.S. Criticism it is blocking American Telephone and Telegraph Corp's <T.N>, AT and T, entry into French telecommunications firm <Compagnie Generale Constructions Telephoniques>, CGCT. Management board member Hans Baur told journalists that the acquisition of a joint 20 pct stake in CGCT by AT and T and Philips Gloeilampenfabrieken NV <PGLO.AS> had not been decided on two years ago as claimed by AT and T. The French government, which owns CGCT, had asked Siemens at the start of 1986 to submit an offer for the stake in CGCT. The result of the negotiations was still open. Baur said Siemens had first made an offer last summer. The Handelsblatt newspaper today quoted AT and T chairman James E. Olson as saying that Siemens' attempt to stop AT and T and Philips could lead to a resurgence of protectionism in the U.S. Baur said he expected the French government to decide on the winning bid by the end of April. CGCT's share of the French switchboard market amounts to around 16 pct. The French government has limited CGCT participation by foreign companies to 20 pct and set a price of 500 mln francs for the whole company. Bauer said the 20 pct limitation would only apply to the initial stake. He did not rule out a stake increase later but said Siemens' aim was to introduce its technology. Bauer said Siemens and French telecommunications firm <Jeumont-Schneider SA> submitted a joint offer at the start of March because of the 20 pct limitation. Both companies will form a joint venture to take over the whole of CGCT. Siemens will have a 20 pct stake in the new company while Jeumont-Schneider will own 80 pct. Apart from investing 100 mln francs for the modernisation of CGCT, a new research centre with was also being planned. REUTER 

MULFORD DISAPPOINTED IN NEWLY INDUSTRIALIZED (NICS) EFFORTS TO STRENGTHEN CURRENCIES

FORD <F> NEARS GM <GM> IN EXECUTIVE BONUSES

Ford Motor Co neared General Motors Corp last year in executive bonuses, while it topped the larger automaker in profit sharing payments to workers. Ford, which outstripped GM in earnings last year, said its 1986 incentive bonuses totaled 167 mln dlrs, slightly behind General Motors' 169.1 mln. General Motors, however, did not make any profit-sharing payments to its workers, while Ford made a profit-sharing distribution of 372 mln dlrs, or 2,100 dlrs per worker. General Motors, which saw its earnings drop to 2.94 billion dlrs from 1985's 3.99 billion, said the 1986 profit was "not sufficient to generate a payout under the profit-sharing formula." Ford, which earned 3.28 billion dlrs in 1986, up from 2.51 billion in 1985, said it "recognizes employees' efforts and fulfills its commitment to them in many ways, including profit-sharing." Reuter 

MULFORD SAYS GERMANY, JAPAN SHOULD DO MORE

Treasury Assistant Secretary David Mulford said he did not believe that West Germany and Japan have yet carried out their international responsibilities. "I do not believe they have up to this time," Mulford told a Senate banking subcommittee. He said that for the U.S. trade deficit to continue improving in the next two years, "We need more policy actions" across the entire front of U.S. trade relations, including Canada and the newly-industrialized countries (NICS). In particular, he said, efforts by South Korea and Taiwan to strengthen their currencies were still disappointing. Mulford also said that OECD nations need to grow an average three pct to help resolve the international debt crisis. He noted that Japanese and European imports from Latin nations were significantly smaller than imports into the U.S. He stressed both Germany and Japan must continue to take economic and structural measures to ensure stronger sustained economic growth. Reuter 

EC GRANTS EXPORT LICENCES 197,000 TONNES FREE MARKET MAIZE, ZERO BARLEY - PARIS TRADERS

PIER 1 IMPORTS <PIR> DECLARES STOCK SPLIT

Pier 1 Imports Inc said its board declared a three-for-two split of its common stock and its 25 cents preferred stock, and declared a regular quarterly dividend of two cents per share on the pre-split shares of common stock outstanding. Pier 1 also declared a 12.5 pct annual dividend increase for the post-split common shares. The split will be effected in the form of a 50 pct stock dividend on both classes. The company said shareholder approval is required for an increase in authorized shares of common stock to 100 mln from 25 mln. It said approval is also needed for an increase in authorized shares of preferred stock from one million to five million. It said voting will be conducted at its annual shareholder meeting on June 24. Pier 1 said there are currently 19.1 million shares of common stock and 960,000 shares of 25 cts preferred stock outstanding. The split shares will be distributed on June 29 to shareholders of record May 13. The two cts per share quarterly cash dividend will be payable May 29 to shareholders of record May 13. "The increase in shares outstanding will broaden the base of stock ownership in the company, and the dividend increase reflects the directors' positive outlook for the future prospects of Pier 1 Imports," said Clark Johnson, president and chief executive officer. Reuter 

RCM TECHNOLOGIES <RCMT> ORDER INCREASED

RCM Technologies Inc said its contract to provide engineering personnel to the Sikorsky Aircraft division of United Technologies Corp <UTX> has been increased by 4,300,000 dlrs to 11.0 mln dlrs. It said the contract runs through the end of 1987. Reuter 

LANCER CORP <LACR> 4TH QTR NET

Shr 12 cts vs 15 cts Net 282,000 vs 360,000 Revs 5,261,000 vs 5,348,000 Avg shrs 2,336,000 vs 2,335,000 Year Shr 91 cts vs 1.04 dlrs Net 2,149,000 vs 2,075,000 Revs 28.2 mln vs 28.3 mln Avg shrs 2,356,000 vs 2,001,000 NOTE: 1986 quarter net includes 72,000 dlr charge from repal of investment tax credit. Reuter 

THERMO PROCESS <TPSI> WINS 1.5 MLN DLR CONTRACT

Thermo Process Systems Inc said it won a 1.5 mln dlr contract from Avtopromimport, a trading company in the Soviet Union. The company said it will supply a fully automated, rotary-hearth furnace system to treat automobile transmission gears. Reuter 

MACNEAL-SCHWENDLER CORP <MNS> 4TH QTR JAN 31 NET

Shr 16 cts vs 11 cts Net 1,888,000 vs 1,307,000 Revs 7,365,000 vs 5,877,000 Year Oper shr 58 cts vs 40 cts Oper net 7,005,000 vs 4,866,000 Revs 27.1 mln vs 21.1 mln NOTE: Prior year net excludes 263,000 dlr loss from discontinued operations and 2,073,000 dlrs on disposal. Share adjusted for stock dividends. Reuter 

NICHOLS INSTITUTE <LAB> 1ST QTR FEB 28 NET

Shr two cts vs one ct Net 83,000 vs 32,000 Revs 11.2 mln vs 7,625,000 Reuter 

FIRST MEDICAL DEVICES CORP <FMDC> YEAR LOSS

Shr loss 97 cts Net loss 1,364,453 Sales 737,971 NOTE: Company in development stage. Reuter 

FIRST MEDICAL <FMDC> GETS ORDER

First Medical Devices Corp said it has received a contract to sell EMT-defibrillation equipment to Lane County, Ore., for undisclosed terms. Reuter 

HEALTHMATE <HMTE> EXPECTS QUALIFIED OPINION

HealthMate Inc said its auditors, Laventhol and Horwath, indicated they will issue a qualified opinion on the company's financial statements. The company, which went public in March 1985, earlier reported losses for the fourth quarter. It said the auditor's statement, known as a "subject to" opinion, cautions that, because of continuing operating losses and negative cash flow, it must achieve profitable operations or acquire additional equity capital or other financing to continue in existence. HealthMate reported a loss for the year of 1,512,534 dlrs, or 17 cts a share on revenues of 1.4 mln dlrs. A year ago, it had a loss of 1,553,592 dlrs, or 20 cts a share on revenues of 515,225 dlrs. It said the increased sales reflect initial shipments of its FluoroScan Imaging Systems, low radiation X-ray imaging devices that recently were classified by Underwriters Laboratories Inc. Reuter 

BALLY <BLY> NAMES NEW CHIEF FINANCIAL OFFICER

Bally Manufacturing Corp said it has elected Paul Johnson a vice president and named him chief financial officer, replacing Donald Romans, who took early retirement. Bally also said it has appointed Jerry Blumenshine, formerly a vice president, treasurer to fill the position left vacant by Johnson. Reuter 

BRAZIL ASKS 60-DAY EXTENSION SHORT-TERM CREDIT

Brazil today suggested to its foreign bank creditors an extension of short-term credit lines for 60 days until May 31, a spokesman for the Central Bank said. He said that with the move, called a "standstill" arrangement, Brazil was only trying to avoid difficulties to pay its 109 billion dlrs debt in the future. The spokesman told Reuters that Brazil's suggestion will be communicated by telex to Brazil's 700 bank creditors. The spokesman declined to give details of what was included in the statement, but said Central Bank president Francisco Gros was seeking a 60-day extension of the short-term credit lines from its commercial bank creditors. The amount of these credit lines totals 15 billion dollars, and deadline for payment is set for March 31. Finance Minister Dilson Funaro said in a television interview it was "absolutely important" for Brazil and its creditors to renew the short-term credit lines, as Brazil must finance its exports. "If these credit lines were cut, we would face difficulties to honour our foreign debt in the future," Funaro said. "There is evidently a common interest in the matter," he said. Funaro said, however, he was told creditors understand Brazil's position and do not wish to turn the negotiation for the renewal of the credit lines more difficult. Brazil last month suspended interest payments on its 68- billion dlrs debt to commercial banks and froze short-term trade and money market lines. He said Brazil's suggestion is part of its demands "before the need to renew the mechanisms of loans in the world." Funaro said currently debt negotiations are "very complex and complicated," mentioning cases of countries which had to wait some 10 months before getting a reply from creditors. "We are not interested in confrontation, but we would like the loan mechanisms to show that the crisis belongs to both sides," Funaro said. Funaro denied rumours that he had offered his resignation to President Jose Sarney. "Who decides whether to keep or dismiss his ministers is the president. Everything else is nothing but speculation," he said. Reuter 

HEALTHMATE INC <HMTE> 4TH QTR LOSS

Shr loss five cts vs loss six cts Net loss 473,784 vs loss 489,257 Revs 268,797 vs 81,725 Avg shrs 9,245,247 vs 8,035,326 Year Shr loss 17 cts vs loss 20 cts Net 1,512,534 vs loss 1,553,592 Revs 1,448,310 vs 515,225 Avg shrs 8,745,132 vs 7,619,863 Reuter 

USAIR <U> CLEARED TO BUY PIEDMONT <PIE> SHARES

USAir Group Inc said the U.S. Department of Transportation has issued an order allowing it to purchase and hold in a voting trust the 9,309,394 Piedmont Aviation Inc shares USAir is seeking in its current 69 dlr per share tender offer. The company said the new order supersedes an order issued by the department last Friday that would have required USAir to sell within one week of expiration of the tender any Piedmont shares it held in excess of 51 pct of the Piedmont stock then outstanding. The company said the 9,309,394 Piedmont shares, together with the 2,292,599 Piedmont shares already owned by USAir, constitute about 50.1 pct of Piedmont's shares on a fully-diluted basius but about 61.0 pct of shares currently outstanding. The shares are to be held in a voting trust pending the department's review of USAir's application to obtain control of Piedmont. Reuter 

FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS

HOUSE OF FABRICS INC <HF> 4TH QTR JAN 31 NET

Shr 34 cts vs 20 cts Net 2,253,000 vs 1,332,000 Sales 89.7 mln vs 85.9 mln Year Shr 94 cts vs 64 cts Net 6,191,000 vs 4,257,000 Sales 316.4 mln vs 286.7 mln NOTE: Prior year net both periods includes 2,100,000 dlr charge from sale of Craft Showcase stores. Reuter 

GERMAN RETAILERS EXPECT GOOD 1987

West German retailers expect another good year in 1987 even though they will not be able to repeat the sharp increase in turnover they enjoyed in 1986, the General Association of the German Retail Trade (HDE) said. HDE President Wolfgang Hinrichs said retailers would be satisfied with a real turnover increase of between 2.5 pct to three pct in 1987 after last year's steep 3.7 pct rise. Hinrichs said the 1986 turnover increase had brought the first hesitant signs of improvement in earnings in the West German retail sector. REUTER 

GERMAN WAGE ROUND SAID TO LIMIT MONETARY OPTIONS

The Bundesbank's options for West Germany monetary policy are limited for the foreseeable future by the delicate stage of wage negotiations between unions and employers, economists and money market dealers said. Call money fell in quite active trading today, dropping to 3.40/50 pct from 3.55/65 pct yesterday, and below the 3.50 pct treasury bill rate as a difficult month-end approached. But dealers and economists said the Bundesbank was unlikely to encourage lower rates in the foreseeable future largely for fear of upsetting the current wage round. One money market dealer for a major foreign bank said, "I don't think the Bundesbank wants rates to go up whatever happens. But it also does not want them to fall. Above all it wants to wait to see how the unions wage round goes." In West Germany, unions and employers prepare the ground for triennial wage negotiations based on detailed assessments of growth and inflation, economists said. Ute Geipel, economist with Citibank AG, said if the Bundesbank became more accommodating in monetary policy, raising fears in some quarters of a return in inflation in the medium term, unions would be obliged to curtail wage demands. As a result the Bundesbank was concerned to make no move that would interfere in the negotiating process, Geipel said. In the current round, the country's most powerful union, the IG Metall representing metalworkers and engineers, is demanding a shortening of the working week to 35 hours from the present 38-1/2 and an accompanying five pct increase in wages. The engineering employers' association, Gesamtmetall, is offering to bring in a 38-hour-week from July 1, 1988, and give a two stage wage increase -- a 2.7 pct rise from April 1 this year and another 1.5 pct from July 1, 1988. The agreement forged by IG Metall -- Europe's largest union, with 2.5 mln members -- and the employers would set the benchmark for settlements in other industries such as the public sector, banks and federal post office. Negotiations began in December and unions are hopeful they may conclude by early April, ahead of the traditional holiday period in June. Though many economists said the unions' current warning strikes and rhetoric were part of the negotiating strategy and would not lead to a repeat of 1984's damaging seven-week strikes, others said unions would not compromise greatly on their positions and there could still be conflict. This could extend the length of time in which the Bundesbank would keep its activity low-key, economists said. The money market head said the unions' humiliation by the protracted financial problems of the Neue Heimat cooperative housing venture would contribute to union obstinacy. "The unions haven't forgotten that and they will put this squarely onto the account in the negotiations," he said. In addition, the newly-elected chairman of the IG Metall union, Franz Steinkuehler, was more radical and determined than his predecessor Hans Meyer and may be set for a longer battle to achieve the best possible settlement for his membership. More than 16,000 engineering workers at 45 firms, mainly in south Germany, held warning strikes lasting up to two hours yesterday. Firms hit included Zahnradfabrik Passau GmbH and aerospace group Messerschmitt-Boelkow-Blohm GmbH. Today, 28,000 employees from 110 companies came out in warning strikes, a statement from IG Metall said. Money market dealers said that overnight call money rates would rise in the near future in any case and did not depend on a politically-inhibited Bundesbank. About eight billion marks were coming into the market tomorrow from salary payments by the federal government. As a result, some banks fell back on the Bundesbank's offer to mop up liquidity via the sale of three-day treasury bills, anticipating still lower rates before the month-end. But a pension payment date by banks on behalf of customers was due on Monday, other dealers noted. If banks were short of liquidity until the bills matured on Tuesday, rates could soar, perhaps to the 5.50 pct Lombard ceiling. Banks were well stocked up with funds, having an average 52.1 billion marks in Bundesbank minimum reserves in the first 24 days of March, well above the 50.7 billion requirement. REUTER 

FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY

President Nobuo Ito of International Telecom Japan Inc (ITJ), one of two rival firms seeking to enter Japan's international telecommunications market, said it will offer a stake in the company to 10 foreign firms. But he declined to specify what share the firms would take, and told Reuters they would not participate in its management. ITJ and International Digital Communications Planning Inc (IDC), in which both Cable and Wireless Plc and Pacific Telesis Group own 20 pct stakes, are set to merge into a new entity to compete against Kokusai Denshin Denwa Co Ltd. Reuter 

SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.

Siemens AG's <SIEG.F> fully-owned subsidiary Siemens Informations Systems Inc. Has raised its stake in <Telecom Plus Communications Inc.> by 65 pct to 100 pct, a Siemens spokesman said. He added that Telecom Plus Communications was the largest independent supplier of telephone exchange systems in the U.S. And had turnover of 234 mln dlrs in 1986. The stake had been acquired from Telecom Plus International Inc. The spokesman declined to comment on U.S. Newspaper reports that the purchase price totalled 173 mln dlrs. Reuter 

FIRST INTERSTATE SEEKS ACQUISITION

Less than two months after First Interstate Bancorp withdrew its bold attempt to buy BankAmerica Corp, Chairman Joseph Pinola is still looking for a good buy, but he is also looking at ways to avoid being bought. In a wide-ranging interview, Pinola said he's looking for ways to improve profitability and capital between now and 1991, "so as to resist any potential look at us...to maintain our independence, if possible." In 1991 federal regulatory changes will allow the major East Coast banks to buy banks in California. First Interstate, the fourth largest California bank, and the nineth largest nationwide, owns 24 banks in 12 western states and has franchise operations in four additional states. Bank industry sources say it is an attractive target for large U.S. or foreign banks, looking to quickly move into the lucrative California market and the West Coast region. While declining specifics on his corporate strategy, when asked if acquisitions will be part of the plan, Pinola replied, "That's undoubtedly a fair statement...it would be almost naive not to think that." Pinola characterized his acquisition strategy as "opportunistic". He said he will look for banks in management trouble that he can get at a bargain, then add management to restore profitability, or for banks in states where First Interstate already operates, then cut costs by combining resources. The exception, he said, would be Texas, where he said most of the banks are already well managed, but might be purchased at a discount because of the depressed regional economy. Pinola declined comment on what circumstances might move him to rekindle his bid for BankAmerica, saying only, "We continue to monitor and look at a lot of things and a lot of people continue to monitor and look at us." Banking analysts, however, consider another First Interstate bid at BankAmerica a long shot, not likely to happen any time soon. Pinola called his decision last month to withdraw his 3.25 billion dlr bid at the nation's second largest bank, "a very, very difficult decision." With that decision made, however, he acknowledged First Interstate may now have a difficult time keeping its number four position in the California banking community. "The competition in this state is tough," he said, noting CityBank's recent purchase of 50 financial service branches from Sears Roebuck company. "CityBank is moving rapidly to move us down to fifth and Wells Fargo down to fourth," he said. Outside California, Pinola acknowledged that Security Pacific Corp, with its recent acquisitions in Arizona, Washington and Oregon, is quickly becoming a regional competitor in areas where First Interstate has long dominated. "Security is, has been and continues to be a highly profitable and obviously well managed company," he said. He added, however, First Interstate, at the moment, has the advantages of having owned and managed regional banks longer and has the recognition advantage of having given its regional banks a common name. Pinola said while its coastal state banks are in good financial condition, First Interstate continues to sustain serious loan losses in its Rocky Mountain states, where energy, real estate and agriculture dominate the economy. Asked if he thought loan losses in those areas had peaked, he said, "I don't think it has bottomed out, because I think most of the problems are real estate-related and the real estate problems are going to be with us for several years." Pinola said another failing economic sector, agriculture in the Midwest, has slowed expansion of First Interstate's franchise operation. First Interstate has 42 franchise banks that offer First Interstate financial services in ten states. While a year ago he was considering taking his franchise operation east of the Mississippi River, Pinola said because most of the franchise banks are now in the West, expansion into the Midwest must come first. Calling the franchise system, "moderately profitable," Pinola said, "It is going to take a rejuvenation of the agriculture sector for us to commence franchising at the speed we were generating before the last year or two." On the banking industry in general, Pinola said he thinks 1987 will be another bad year for loan losses, with only banks with minimal holdings in real estate able to improve profits. Reuter 

ATLANTIC RESEARCH <ATRC> WINS MOTOR CONTRACT

Atlantic Research Corp said its propulsion division won a contract valued at 54 mln dlrs from the missiles unit of LTV Corp's <QLTV> LTV Missiles and Electronics Group. The contract authorizes the fifth year increment of a multiyear contract to make solid-propellant rocket motors for the U.S. Army's Multiple Launch Rocket System, the company said. Reuter 

THOMAS AND BETTS <TNB> FILES PATENT SUIT

Thomas and Betts Corp said it filed a patent infringement suit against three companies in connection with the manufacture and sale of its 50 Position Transition "D" Subminiature IDC electronic connectors. The company said the suit was filed in U.S. District Court for the District of Delaware. Named in the suit were <Carrot Components Corp>, <ODU-Kontact GmbH and Co> and <KG and G and H Technologies Inc>, it said. Thomas and Betts said it is seeking an injunction to prevent the future sale of the connectors, as well as damages. Reuter 

HOUSE OF FABRICS <HF> SEES RESULTS IMPROVING

House of Fabrics Inc said it expects growth in earnings and revenues as the current fiscal year progresses. It said it will open about 50 super stores this year. House of Fabrics now operates 703 stores. The company today reported earnings for the year ended January 31 of 6,191,000 dlrs on sales of 316.4 mln dlrs, up from prior year earnings of 4,257,000 dlrs on sales of 286.7 mln dlrs. The prior year earnings included a 2,100,000 dlr charge for the disposition of Craft Showcase stores. Reuter 

U.S. SENATE HITS EC OILS TAX, VOWS RETALIATION

The Senate voted to condemn the proposed European common market tax on vegetable and fish fats and oils and said it would result in retaliation. The non binding Senate resolution, a sense of Senate sentiment, was approved on a 99 to 0 vote. "The administration should communciate to the European Community the message that the United States will view the establishment of such a tax as inconsistent with the European Community's obligations under the General Agreement on Tariffs and Trade that will result in the adoption of strong and immediate countermeasures," the resolution stated. Reuter 

CROP GENETICS INITIAL OFFERING UNDERWAY

<Crop Genetics International Corp> said an initial public offering of 1,600,000 common shares is underway at 14.50 dlrs per share through underwriters led by <Drexel Burnham Lambert Inc>. Reuter 

KODAK <EK> BUYS STAKE IN BIOTECHNOLOGY COMPANY

Eastman Kodak Co said it has reached an agreement to acquire new stock representing a 16 pct interest in industrial biotechnology company <Genencor Inc> for undisclosed terms. Other Genencor shareholders include Staley Continental Inc <STA>, Corning Glass Works <GLW> and Genentech Inc <GENE>. The company said it has been granted options to increase its equity stake during 1987. It said it has agreed to make a multiyear, multimillion dollar commitment to Genecor research products related to food additivies and pharmaceutical intermediates. Reuter 

AVERY <AVY> 1ST QTR FEB 28 NET

Shr 33 cts vs 30 cts Net 13.0 mln vs 11.9 mln Sales 330.8 mln vs 249.7 mln Reuter 

FORD <F> CREDIT UNIT SELLS NEW ZEALAND DLR FRNS

Ford Motor Credit Co, a unit of Ford Motor Co, is offering in the domestic debt market 100 mln New Zealand dlrs of floating-rate notes due 1990, said sole manager Bear, Stearns and Co. The initial rate for the notes will be set on April 15 at 200 basis points below the 90-day New Zealand bank bill rate. After that, the rate will be reset quarterly. Non-callable to maturity, the issue pays quarterly and is rated A-1 by Moody's and AA-minus by S and P. Underwriters said floaters denominated in a foreign currency are a new wrinkle on Wall Street. Reuter 

IONICS <ION> WINS 20-YEAR DESALINATION CONTRACT

Ionics Inc said it received a 20-year seawater desalination contract valued at more than 50 mln dlrs over the life of the contract from (Electrica Maspalomas SA), a water utility in Grand Canary Island, Spain. The contract supplements a previously announced 15-year contract to supply desalted brackish water in the same geographical area. That contract is currently valued at 60 mln dlrs. The stated value of the new contract excludes escalation and possible future increases in capacity, Ionics said. It calls for the supply of 1.7 mln gallons a day of drinking water on Grand Canary Island in Spain. Reuter 

FED SETS TWO BILLION DLR CUSTOMER REPURCHASE

The Federal Reserve entered the U.S. government securities market to arrange two billion dlrs of customer repurchase agreements, a spokeswoman for the New York Fed said. Federal funds were trading at 6-3/16 pct at the time of the indirect injection of temporary reserves. Reuter 

SENATE SEEKS U.S. PROBE OF CANADIAN CORN LEVY

The Senate voted unanimously to seek an expedited U.S. probe of Canadian tariffs on corn imports to determine if the United States should retaliate. By 99 to 0, the Senate went on record against the 84.9 cents per bushel tariff approved by the Canadian Import Tribunal. The non binding measure asked for a probe by the U.S. Trade Representative to determine within 30 days whether the tariff violates the General Agreement on Tariffs and Trade, and if so recommend within 60 days to President Reagan retaliatory action against Canada. Reuter 

RICOH REORGANIZES U.S. UNITS

Ricoh Corp, the U.S. unit of Japan-based <Ricoh Ltd>, said it merged Ricoh Systems Inc into Ricoh Corp. The U.S. unit also purchased Ricoh Electronics Inc from the parent company. The company said the reorganization unites the sales, research and development, and manufacturing operations of all the U.S. units. Reuter 

UNITED WATER <UWR>, BASE TEN <BASE> SET VENTURE

United Water Resources Inc said it formed a venture with Base Ten Systems Inc's Base Ten Telecom Inc to sell a telephone-based automatic meter reading system to the utility industry. United Water Resources, parent of Hackensack and Spring Valley Water Cos, said it will provide marketing and customer support for Base Ten's automatic meter reading system. The company said it will install the system for 168,000 commercial and residential customers this spring. Reuter 

KNIGHT-RIDDER INC <KRN> SETS QUARTERLY

Qtly div 25 cts vs 25 cts prior Pay April 13 Record April Six Reuter 

TECHNITROL INC <TNL> SETS QUARTERLY

Qtly div 12 cts vs 12 cts prior Pay April 21 Record April Seven Reuter 

NATIONWIDE CELLULAR SERVICE INC <NCEL> 4TH QTR

Shr loss six cts vs loss 18 cts Net loss 89,478 vs loss 178,507 Revs 3,894,844 vs 1,964,141 Avg shrs 1,582,790 vs one mln Year Shr loss 43 cts vs loss 81 cts Net loss 534,099 vs loss 811,836 Revs 12.2 mln vs 5,167,573 Avg shrs 1,251,337 vs one mln Reuter 

<A.H.A. AUTOMOTIVE TECHNOLOGIES CORP> YEAR NET

Shr 43 cts vs 52 cts Shr diluted 41 cts vs 49 cts Net 1,916,000 vs 2,281,000 Revs 32.6 mln vs 22.6 mln Reuter 

BRAZIL SUGGESTS 60-DAY SHORT-TERM CREDIT EXTENSION

Brazil today suggested to its foreign bank creditors an extension of short-term credit lines for 60 days until May 31, a spokesman for the Central Bank said. He said that with the move, called a "standstill" arrangement, Brazil was only trying to avoid difficulties in paying its 109 billion dlrs of debt in the future. The spokesman told Reuters that Brazil's suggestion will be communicated by telex to Brazil's 700 bank creditors. He declined to give details of the statement, but said Central Bank president Francisco Gros was seeking a 60-day extension of short-term credit lines from its commercial bank creditors. The amount of these credit lines totals 15 billion dlrs, and deadline for payment is set for March 31. Finance Minister Dilson Funaro said in a television interview that it was "absolutely important" for Brazil and its creditors to renew the short-term credit lines, as Brazil must finance its exports. "If these credit lines were cut, we would face difficulties to honour our foreign debt in the future," Funaro said. "There is evidently a common interest in the matter," he said. Funaro said, however, he was told creditors understand Brazil's position and do not wish to make the negotiation for the renewal of the credit lines more difficult. Funaro explained that Brazil's suggestion is part of its demands "before the need to renew the mechanisms of loans in the world." He said that the current negotiating process is "very complex and complicated," mentioning cases of countries which had to wait some 10 months before getting a reply from creditors. "We are not interested in confrontation, but we would like the loan mechanisms to show that the crisis belongs to both sides," Funaro said. Funaro denied rumours that he had offered his resignation to President Jose Sarney. "Who decides whether to keep or dismiss his ministers is the president. Everything else is nothing but speculation," he said. Brazil last month suspended interest payments on its 68- billion dlrs of debt to commercial banks and froze short-term trade and money market lines. REUTER 

EMHART <EMH> WINS FOUR COMMUNICATIONS CONTRACTS

Emhart Corp said it received four contracts valued at a total of seven mln dlrs to design, develop and install data communications and automated dispatching systems. The company said its Planning Research Corp unit, which received the contracts, will do the work for the city of Grand Rapids, Mich., the New Jersey Transit Authority, the Los Angeles County Sheriff's office and the city of Calgary, Alberta, Canada. Reuter 

FLUOR <FLR> AND UNITS DOWNGRADED BY S/P

Standard and Poor's Corp said it downgraded 360 mln dlrs of debt of Fluor Corp and its units Fluor Finance N.V. and St. Joe Minerals Corp. Cut were the firms' senior debt to BB from BBB and the parent's commercial paper to B from A-2. S and P cited industry overcapacity and weak pricing conditions in Fluor's core businesses. It said profitability and cash flow protection are not expected to rebound in the foreseeable future to levels that would support the former ratings. Restructuring has not compensated for a greater than anticipated deterioration in market conditions, S and P said. Reuter 

BRUNSWICK CORP <BC> SELLS NOTES AT 8.199 PCT

Brunswick Corp is raising 100 mln dlrs through an offering of notes due 1997 yielding 8.199 pct, lead manager Shearson Lehman Brothers Inc said. The notes have an 8-1/2 pct coupon and were priced at 99.50 to yield 96 basis points over comparable Treasury securities. The issue is non-callable for life and rated Baa-1 by Moody's Investors Service Inc and BBB-plus by Standard and Poor's Corp. Salomon Brothers co-managed the deal. Reuter 

ROGERS <ROG> SEES 1ST QTR NET UP SIGNIFICANTLY

Rogers Corp said first quarter earnings will be up significantly from earnings of 114,000 dlrs or four cts share for the same quarter last year. The company said it expects revenues for the first quarter to be "somewhat higher" than revenues of 32.9 mln dlrs posted for the year-ago quarter. Rogers said it reached an agreement for the sale of its molded switch circuit product line to a major supplier. The sale, terms of which were not disclosed, will be completed early in the second quarter, Rogers said. Reuter